Northern District of Indiana

FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announced a variety of racketeering charges in an 18 count indictment against 4 members and associates of the “2500” street gang, with associations to the “Grit Gang”, a street gang in Bloomington, Indiana. Named in the indictment are:

 

• Demetri D. Beachem, aka “Meech”, 22, of Fort Wayne, Indiana

• William D. Beamon, aka “Lil Will”, 24, of Fort Wayne, Indiana

• Kyombe D. Bolden, “aka Pudge”, 25, of Bloomington, Indiana

• Ronnie D. Burrus, “aka Ronnie Robinson, Ronnie Burris and Yung Ron”, 24, of Bloomington, Indiana

 

The “2500” originated in the 2500 block of Caroline Street in Ft. Wayne. The indictment alleges that “2500” is a criminal organization engaged in acts of violence, including murder, attempted murder and drug trafficking. Specifically alleged are the attempted murders of two rival gang members on October 4, 2014, in Ft. Wayne. Also alleged is an attempted murder of a third person, not a rival gang member.

 

USA Capp stated, “I greatly appreciate the cooperative law enforcement effort here in Ft. Wayne. This is our first use of the federal racketeering statutes against street gangs in this area. It will not be our last. We are going to continue to focus our efforts on criminal organizations and utilize the federal racketeering statutes to remove them from the streets.”

 

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

 

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

 

This multi-agency investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force in Fort Wayne, which includes the Federal Bureau of Investigation, the Allen County Police Department, the Fort Wayne Police Department, and the Indiana State Police. Also assisting with this investigation were the Bloomington Police Department, the Indiana State Police Laboratory Division, and the Fort Wayne Police Department’s Detective Bureau and Gang Unit. This case is being handled by Assistant United States Attorney Anthony W. Geller.

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FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Frankie Williams a/k/a “Molly” of Fort Wayne, Indiana entered a plea of guilty to counts 3 and 4 of the indictment which charged her with submitting false claims for payment to the Internal Revenue Service in connection with fraudulent tax returns. The Magistrate Judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. If the District Court ultimately accepts the guilty plea, the sentencing hearing will be scheduled under a separate order.

 

Co-defendant Cavasierre Russell a/k/a “Vassi” in June 2016 pleaded guilty to one count of submitting a false claim in connection with a fraudulent tax return. He was sentenced in September 2016 to 6 months imprisonment and was ordered to pay $45,983 restitution to the Internal Revenue Service. Two other defendants Ronald Ward and Cassandra Ward, were charged under separate indictments. Ronald Ward, in August 2016 pleaded guilty to one count of submitting a false claim in connection with a fraudulent tax return. He was sentenced in October 2016 to 12 months and a day imprisonment and ordered to pay $48,311 restitution to the Internal Revenue Service. Cassandra Ward a/k/a “Kitten,” in March 2016 pleaded guilty to one count of submitting a false claim in connection with a fraudulent tax return. She was sentenced in June 2016 to 5 years probation and was ordered to pay $112,078.64 restitution to the Internal Revenue Service and Social Security Administration.

 

This case was the result of an investigation by the Internal Revenue Service, Criminal Investigation Division and the Social Security Administration, Office of Inspector General. This case was handled by Assistant United States Attorneys Lovita Morris King and Deborah M. Leonard.

 

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FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Keenan Davis, 40, of Fort Wayne, Indiana was found guilty, after a 4-day jury trial. Davis was convicted of 2 counts of being a felon in possession of a firearm.

 

According to documents filed in this case, Davis had two prior felony convictions on his record and was found to be in possession of a firearm.

 

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.

 

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HAMMOND- United States Attorney David A. Capp announced that Joshua Herman, 28, of Hammond, Indiana, was sentenced on February 22, 2017 by District Court Judge Rudy Lozano after pleading guilty to possession of a firearm by a felon.

 

Herman was sentenced to 120 months imprisonment and 2 years of supervised release.

 

According to Court filings, on May 4, 2016, the Hammond Police Department was dispatched in regards to a shots fired call. Witnesses advised dispatch that the suspects were fleeing in a green vehicle. When officers came upon the vehicle, one of the individuals, later identified as Joshua Herman was observed passing a chain link fence and dropping an object into the grass. Officers searched the area and located a Jimenez Arms .380 caliber handgun. Herman had been previously convicted of Armed Robbery in Cook County Circuit Court on November 30, 2009.

 

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department. This case was handled by Special Assistant United States Attorney Armando Salinas.

 

 

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Brian Keith Jennings, Jr, 19, of South Bend, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio following a guilty plea to 2 counts of theft of firearms from a licensed firearm dealer.

 

Jennings was sentenced to 70 months imprisonment, followed by 2 years supervision and ordered to pay $50, 231.45 in restitution; for a portion of this restitution amount, Jennings is jointly liable with his co-defendants.

 

According to documents filed in this case, in May of 2016, a firing range and training facility in South Bend, Indiana, was burglarized and one firearm was stolen. Again, in June of 2016, the same facility was burglarized again and multiple firearms were stolen. During both incidents, a vehicle was driven into the front of the facility to smash the door open and provide a point of entry, through which multiple individuals entered the facility, stole firearms, and then re-entered the vehicle which drove away.

 

D’dre’a Bostic, 19, of South Bend, Indiana and Matthew Bishop, 19, of South Bend, Indiana were sentenced earlier this month each for a single count of theft of firearms from a licensed dealer. Bostic was sentenced to 37 months imprisonment, 2 years supervised release and ordered to pay $28,530.46 in restitution to be paid jointly with the other 2 co-defendants. Bishop was sentenced to 27 months imprisonment, 2 years supervised release and ordered to pay $28,530.46 in restitution to be paid jointly with the other 2 co-defendants.

 

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Mishawaka Police Department; South Bend Police Department and St. Joseph County Police Department. This case was handled by Assistant United States Attorneys Kenneth M. Hays and Molly E. Donnelly.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Derek Fields, 30, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller, Jr.

 

Fields was sentenced to 636 months imprisonment following his trial and subsequent guilty verdict on November 16, 2016 of kidnapping, extortion, felon in possession and using a firearm in a crime of violence. Fields was also ordered to pay restitution of $196,512.10 for lost wages of the victim and medical expenses.

 

According to documents filed in this case, Fields and his codefendants unlawfully confined or kidnapped an individual against his will and demanded a ransom for that individual from his family. A firearm was discharged, hitting the victim, and caused permanent injuries to the victim. Two co-defendants, Lindani Mzembe and Ivan Brazier were also convicted in separate trials of similar offenses, and were sentenced to 524 months and 444 months respectively.

 

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.

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HAMMOND- United States Attorney David A. Capp announced that Manuel Ramos, 42, of Gary, Indiana, was sentenced on February 14, 2017 by District Court Judge Joseph Van Bokkelen after pleading guilty to possession of a firearm by a felon.

 

Ramos was sentenced to 40 months imprisonment and 2 years of supervised release.

 

According to Court filings, in May and June of 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted an investigation that revealed that Ramos acquired and possessed firearms for the purpose of selling them for profit within the Northern District of Indiana.

 

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was handled by Assistant United States Attorney Thomas McGrath.

 

 

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HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Rita Law, 58, of Chicago, Illinois, and Crystal Wireman, 32, of Lake Station, Indiana, were found guilty today following a 3-week jury trial.

 

The jury rendered guilty verdicts on all counts against Defendant Rita Law. Law was initially charged in October 2013 with transporting a woman in interstate commerce with intent that the woman engage in prostitution. On the day she was charged, Law fled to Hong Kong. Upon her arrival in Hong Kong, Law was apprehended and extradited to the United States. Thereafter, a grand jury sitting in Hammond, Indiana brought additional charges against Law for sex trafficking and involuntary servitude and for using an interstate facility to promote prostitution.

 

Because these additional charges were brought against Law by the United States after she was extradited, Article 16 of the Agreement between the Government of Hong Kong and the Government of the United States for the Surrender of Fugitive Offenders required the United States to seek consent to proceed on the new charges, which was granted

 

According to testimony and evidence presented at trial, Law provided and obtained the labor and services of two victims, referred to at trial as HV and XC, by means of a scheme, plan and pattern intended to cause them to believe that if they did not perform the labor and service, they would suffer serious harm and physical restraint. Law caused both women to work at her “spas” in Northwest Indiana, where they were expected to and did engage in sexual acts in exchange for money with Law’s predominantly male clientele. Law’s businesses were called “Duneland Spa” in Lake Station and Gary, Indiana and “Fun Fun Feet” in Hobart, Indiana. Law was also convicted of transporting victim XC in interstate commerce with intent that she engage in prostitution and using a telephone to promote, manage, establish, carry on and facilitate prostitution in violation of Indiana Code.

 

The jury also convicted Defendant Crystal Wireman of using a telephone to promote, manage, establish, carry on and facilitate prostitution in violation of Indiana Code § 35-45-4-2 and § 35-45-4-4. According to testimony and evidence presented at trial, Wireman worked as a masseuse at Law’s spas in Hobart and Gary, Indiana and assisted Law in managing her prostitution business.

 

This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance from the Gary Police Department, the Hammond Police Department, the Hobart Police Department, the Lake Station Police Department, the Lake County Sheriff’s Office, and the Oak Forest (Illinois) Police Department. This case was prosecuted by Assistant United States Attorneys Jill Koster and Abizer Zanzi.

 

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HAMMOND – United States Attorney David Capp announced federal racketeering charges against 11 additional members of the Latin Kings, a criminal enterprise doing business in Chicago and northwest Indiana. The Indictment also alleges a drug conspiracy in which the 11 plus another additional individual were charged. Named in today’s indictment are:

 

Jeremiah Shane Farmer, 35, of Hammond, IN

Lazaro Francisco Delgado-Gonzalez, Jr. a/k/a “Pollo Loco”, 27, of Highland, IN

Timothy Maurice Diaz a/k/a “Slice”, 34, of Hammond, IN

Sean Michael Pena a/k/a “Big Body”, 34, of Hammond, IN

Marquis Sean Medellin a/k/a “Kilo”, 30, of Hammond, IN

David Ulmenstine a/k/a “Silent”, 25, of Harvey, IL

Jorge Esqueda a/k/a “Silent”, 22, of East Chicago, IN

Juan Alcaraz a/k/a “Silent”, 28, of Hammond, IN

Miguel Angel Marines a/k/a “Egg”, 22, of East Chicago, IN

Rafael Cancel, 35, of Hammond, IN

Kash Lee Kelly, 28, of Hammond, IN

Eduardo Ivel a/k/a “Little Smiley”, 21, of Hammond, IN

 

These 12 individuals were added to the existing Latin King indictment pending in the Northern District of Indiana that had previously charged 26 members or associates of the Latin Kings. All of the above, except Kash Lee Kelly, were charged with a conspiracy to participate in racketeering activity. All of the above, including Kash Lee Kelly, were charged with a conspiracy to distribute narcotics.

 

Law enforcement arrested 8 of these individuals today: Delgado-Gonzalez, Medellin, Ulmenstine, Esqueda, Alcaraz, Marines, Cancel, and Kelly. Two others, Farmer and Ivel, were already in State custody on unrelated charges. Two of the individuals, Timothy Maurice Diaz and Sean Michael Pena, are considered fugitives from justice.

 

We are currently seeking the whereabouts of:

• (Apprehended)Timothy Maurice Diaz a/k/a “Slice”, 34, of 6320 New Hampshire Avenue Hammond, IN

• Sean Michael Pena a/k/a “Big Body”, 34, of 1148 State St Hammond, IN

If you have any information as to the whereabouts of the above individuals please contact the Federal Bureau of Investigation at 317-595-4000 or Bureau of Alcohol, Tobacco, Firearms and Explosives at 1-800-ATF-GUNS.

 

This indictment alleges new overt acts in furtherance of the illegal objectives of the Latin Kings including retaliatory arsons: January 5, 2013 on Durbin Street in Gary and on March 22, 2013 on Sherman Street also in Gary.

 

The previous indictments had charged Anton James with murder in aid of racketeering for his alleged role in the murder of Martin Hurtado Sr. The indictment alleges that, on Oct. 28, 2014, James shot and killed Hurtado Sr. in Hammond believing that he was Martin Hurtado Jr., whom James believed was a rival gang member. They also detailed two previously uncharged murders as alleged overt acts in the racketeering conspiracy. On July 18, 2011, Travis Nash was shot and killed in Hammond. The indictment alleges that Reynaldo Robles, acting at the direction of Aldon Perez (indicted previously), shot and killed Nash, believing him to be a rival gang member. The indictment also alleges that on August 14, 2014, Keith Trevor Manuel and Joseph Uvalle (both indicted previously) demanded that members of the Latin Kings take action against Estrella’s Bar in Hammond, Indiana, as the owner of Estrella’s Bar was allowing rival gang members to patronize the bar. It is alleged that Uvalle drove Nicholas Baez and Antonio Gamino to the bar and handed Baez a firearm. Baez shot into the bar, striking and killing Raudel Contreras, while Gamino served as a lookout. In addition, Latin King indictments had charged Joseph Uvalle with sex trafficking offenses, and this indictment carries those charges over unchanged from the previous indictment.

 

This indictment is part of the ongoing effort by local and federal law enforcement to remove criminal organizations from the streets of northwest Indiana.

 

United States Attorney Capp said, “As I have repeatedly stated, if you are a member of or associate with these criminal organizations we are coming after you. It may take us months or it may take longer but we are coming after you.”

 

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

 

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

 

This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chicago Police Department, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Northern District of Illinois United States Attorney’s Office and the Lake County Prosecutor’s Office also has provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick, Dean Lanter and Abizer Zanzi of the Northern District of Indiana.

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FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announced that a criminal complaint was filed charging Uryan Frymire, 37, of Ohio, with possession with intent to distribute more than five kilograms of cocaine.

 

According to documents in this case, there was a traffic stop conducted in Texas on January 17, 2017 of a semi-tractor where 62 packages or approximately 70 kilograms of a white powdery substance were found. The substance field tested positive for cocaine. The driver of the semi-tractor, who was the only occupant, said he was destined for Fort Wayne and Chicago, Illinois to deliver the cocaine in the roof. The driver agreed to the delivery of 17 kilograms of cocaine to Fort Wayne. On January 19, 2017, the driver made a controlled delivery to Frymire who was arrested by Homeland Security Agents.

 

The United States Attorney’s Office emphasizes that a Criminal complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.

 

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

 

This investigation was conducted by the United States Homeland Security Investigations with the assistance of the Allen County, Indiana Sheriff’s Department; Greenville, Indiana Police Department; Indiana State Police; and United States Drug Enforcement Administration. This case is being handled by Assistant United States

HAMMOND- United States Attorney David A. Capp announced that Victor Castro, 37, of East Chicago, Indiana was sentenced before Chief Judge Philip Simon on January 13, 2017 for distribution of over 500 grams of cocaine.

 

Castro was sentenced to 60 months imprisonment and 4 years supervised release.

 

According to documents in this case, in December of 2014, an investigation by the Drug Enforcement Administration revealed that Castro distributed a kilogram of cocaine to a DEA confidential informant at Castro’s place of business, Castro Trucking Service, in Gary, Indiana.

 

This case was the result of an investigation by the Drug Enforcement Administration. The case was handled by Assistant United States Attorney Thomas M. McGrath.

 

 

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FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announced that an information was filed charging Rachel Crawford, 38, of Fort Wayne, Indiana, with obtaining by fraud and materially false statements, federal financial funds within the jurisdiction of the United States Department of Education. The Department of Education provides certain funding through Family Federal Education Loans (FFEL), a program administered by Sallie Mae. This charge relates to Crawford’s actions when she was the financial aid director at Masters of Cosmetology.

 

In conjunction with this information, Crawford has entered into an agreement wherein she will plead guilty to the charge.

 

The United States Attorney’s Office advised that Crawford has cooperated with this investigation throughout. This investigation led to the earlier conviction of Kaydean Geist, owner of Masters of Cosmetology.

 

As part of this overall investigation, the Department of Education agreed to cancel certain FFEL loans through Sallie Mae that were illegally acquired by Masters of Cosmetology, thereby relieving many students from loans that should never have been authorized by Masters of Cosmetology.

 

The above charge and plea concludes the matter regarding the financial irregularities regarding the Masters of Cosmetology School. Crawford will appear in court for her change of plea hearing before Magistrate Judge Susan Collins at a future date.

 

The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

 

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

 

This investigation was conducted by the Federal Bureau of Investigation, Indiana State Police and the United States Department of Education-Office of Inspector General. This case was handled by Assistant United States Attorney Tina L. Nommay.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Lindani Mzembe, 32, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller, Jr. for kidnapping, making a ransom demand, discharging a firearm during a crime of violence and being felon in possession of a firearm.

 

Mzembe was sentenced to 528 months imprisonment and 1 year supervised release.

 

According to documents filed in this case, Mzembe and his codefendants possessed firearms as felons to unlawfully confine or kidnap an individual and demanded a ransom for that individual’s release. A firearm was discharged, hitting the victim, during the kidnapping. Two co-defendants, Ivan Brazier and Derek Fields were convicted in separate trials of kidnapping, extortion, being a felon in possession of a firearm, and use of a firearm in a crime of violence. Derek Fields is scheduled to be sentenced on February 22, 2017.

 

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.

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HAMMOND- United States Attorney David A. Capp announced today Richard E. Gearhart, 66, of Lowell, Indiana and George R. McKown, 65, of Indianapolis, Indiana, were recently charged with conspiracy to commit securities fraud, securities fraud, and wire fraud

According to documents filed in this case, it is alleged that the defendants sold securities to individuals who transferred their traditional IRSs, pensions, annuities, 401ks, and cash to invest with Gearhart and McKown, through Asset Preservation Specialists, Inc., after being guaranteed that their original investment was safe and sound and promising a guaranteed rate of return.  Gearhart and McKown were not registered with the SEC or the State of Indiana to sell securities.

“Gearhart had all the warning signs of a typical Ponzi scheme; he took advantage of people he knew and wasn’t registered with my office to sell securities,” said Secretary of State Connie Lawson.  Secretary Lawson also reminded all potential investors that no matter how well you think you know someone or how successful they look, always check with the Secretary of State to make sure the professional and the product are registered.

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case was the result of a joint investigation by the United States Postal Inspection Service, the Federal Bureau of Investigation and the Indiana Secretary of State Securities Division.  The case is being prosecuted by Assistant United States Attorney Toi Denise Houston.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Aurelio Cervantes, 53, of Elkhart, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for possession with intent to distribute cocaine.

Cervantes was sentenced to 168 months imprisonment and 3 year supervised release.

According to documents in this case, Cervantes was involved with distribution of cocaine.  Cocaine would be shipped from Texas to Elkhart, Indiana and then distributed to Ohio.  Cervantes acknowledged that he should be held responsible for 50-150 kilograms of cocaine 

This case was prosecuted as a result of an investigation by the Drug Enforcement Administration and Internal Revenue Service-Criminal Investigation Division.  This case was handled by Assistant United States Attorney Frank E. Schaffer.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Vincent Jones, 46, of Westville, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for felon in possession of a firearm.

Jones was sentenced to 97 months imprisonment and 1 year supervised release.

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the La Porte County Sheriff’s Department and Westville Police Department.  This case was prosecuted by Assistant United States Attorneys Frank E. Schaffer, Luke N. Reilander and Molly E. Donnelly.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced a 13 count indictment against Gregory Brown, 36, and Shakyia Bunch, 30, of Chicago, Illinois along with Jeneva Sutton, 31, of Michigan City, Indiana for wire fraud, aggravated identity theft and unauthorized access device fraud.

Brown and Bunch were charged in all 13 counts of the indictment whereas Sutton was charged with 7 counts of wire fraud, 2 counts of aggravated identity theft and 1 count of unauthorized access device fraud. 

According to documents filed in this case, from April through July of 2016, Gregory Brown was an inmate at the La Porte County Jail while Shakyia Bunch was employed at a hotel in the Northern District of Illinois and Jeneva Sutton maintained a residence in the Northern District of Indiana. It is alleged that Brown proposed to other inmates in the La Porte County Jail that he would secure their release through payment of their respective bond amounts if those inmates would repay him. Bunch allegedly stole credit card account numbers from the hotel where she was employed from individuals who had provided credit card information in order to book stays at the hotel. Sutton allegedly obtained stolen credit card account numbers from Bunch. Bunch and Sutton were alleged to have used the internet to effect wire transfers of money using the stolen credit card account numbers to pay for various inmates’ bonds. Eight wire transactions were effected using four different account holders’ credit card account information. Sutton was to receive payment via money or property from inmates who had been released from the La Porte County Jail or from individuals associated with inmates who had been released or were seeking release. Through this scheme and through use of the stolen credit card account numbers, the defendants obtained a Chrysler 300 vehicle.

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case was investigated as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; La Porte County Sheriff’s Office; and Michigan City Police Department.  This case is being handled by Assistant United States Attorney Molly E. Donnelly.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Ivan Brazier, 40, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller, Jr. for kidnapping and extortion.

Brazier was sentenced to 444 months imprisonment and 1 year supervised release.

According to documents filed in this case, Brazier and his codefendants possessed firearms as felons to unlawfully confine or kidnap an individual and demanded a ransom for that individual’s release.  A firearm was discharged, hitting the victim, during the kidnapping.  Two co-defendants, Lindani Mzembe and Derek Fields were convicted in separate trials of kidnapping, extortion, being a felon in possession of a firearm, and use of a firearm in a crime of violence.  Mzembe is scheduled to be sentenced on January 5, 2017, and Fields is scheduled to be sentenced on February 22, 2017.

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide.  This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.

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FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announces that Sie Merriman, 36, of Fort Wayne, IN was sentenced before District Court Judge Theresa Springmann for being a felon in possession of a firearm. 

Merriman was sentenced to 86 months’ imprisonment and 1 year supervised release.

According to documents filed in the case, in December 2015 Merriman knowingly possessed a firearm.  Merriman has two previous convictions for forgery in the State of Missouri. 

This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case was prosecuted by Assistant United States Attorney Stacey R. Speith.

 

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HAMMOND- United States Attorney David A. Capp announced today that Pamela Griffin Frizzelle, 54, of Merrillville, Indiana was sentenced before Chief Judge Philip Simon for three counts of Hobbs Act Extortion.

Frizzelle was sentenced to 12 months’ and 1-day imprisonment and ordered to pay restitution to the Lake County Assessor’s Office in the amount $7,128.         

According to documents filed in the case, Frizzelle, an employee of the Calumet Township Assessor’s Office, solicited money from business owners in exchange for reducing or attempting to reduce tax assessments for personal and real property.  Frizzelle pled guilty to three counts and admitted to receiving cash from owners including $800 to assist a laundry mat owner illegally obtain a refund for prior years.  Frizzelle backdated documents and convinced her supervisors that the appeal was legitimate, which resulted in a refund of more than $7,000.  Frizzelle also accepted money from other business owners in exchange for promises to reduce owed taxes. 

This case was investigated by the Federal Bureau of Investigation.  The case is being handled by Assistant United States Attorney Gary T. Bell.

 

 

 

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HAMMOND – United States Attorney David Capp announced today the unsealing of an Indictment against Lajuan Fitzpatrick, 25, of Danville, IL for drug conspiracy and using a firearm in relation to a drug trafficking crime in which an individual was murdered.    

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation are seeking the public’s assistance in locating the subject.  Fitzpatrick has ties to Gary and Lake Station, Indiana along with the South Side of Chicago and Danville, IL. 

Anyone with information related to the whereabouts of Lajuan Fitzpatrick are encouraged to call the ATF at 800-ATF-Guns or FBI at 219-942-4900.  The subject should be considered armed and dangerous.  If seen do not try to apprehend, call 911. 

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, East Chicago Police Department, Federal Bureau of Investigation, Gary Police Department, Hammond Police Department, Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents.  The case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter. 

 

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WASHINGTON – The United States, together with the states of Indiana and Illinois and the Michigan Department of Environmental Quality, announced today that U. S. Steel Corporation (U. S. Steel) has agreed to resolve Clean Air Act litigation initiated by the United States and the three states in August 2012, by undertaking measures to reduce pollution at its three Midwest iron and steel manufacturing plants in Gary, Indiana; Ecorse, Michigan; and Granite City, Illinois.  As part of the agreement, U. S. Steel will perform seven supplemental environmental projects totaling $1.9 million, to protect human health and the environment in the communities affected by U. S. Steel’s pollution, including a project to remove lighting fixtures containing toxic chemicals in public schools.  In addition, U. S. Steel will expend $800,000 for an environmentally beneficial project to remove contaminated transformers at its Gary and Ecorse facilities and pay a $2.2 million civil penalty.  The agreement is memorialized in a consent decree lodged today in federal district court in the Northern District of Indiana. 

“Defendant U. S. Steel, a major global iron and steel manufacturer, has agreed to curtail significant pollution from its three Midwest plants,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “This outstanding settlement, whose results will especially benefit the three environmental justice communities most closely affected by defendant’s pollution, is another example of how the Department of Justice, U.S. Environmental Protection Agency (EPA) and our state counterparts often work hand-in-hand to enforce our federal and state clean air act laws to protect the health and welfare of our citizens.”

“Today’s settlement protects communities in the Midwest from air pollution and puts important environmental projects to work,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance.  “Making sure companies comply with the law that protects clean air is an important way EPA safeguards the health of communities across the country.”

Under the consent decree, U. S. Steel will immediately repair, and later replace, a bell top on a blast furnace used for making molten iron at its Great Lakes Works facility in Ecorse.  The bell top, through which raw materials are placed inside the furnace, has a worn seal that is causing increased emissions of hazardous pollutants and particulate matter.  The new bell top is designed to eliminate those increased emissions.  U. S. Steel will also implement improvements (following a third-party study) at its Great Lakes Works’ steel-making shop to reduce emissions causing opacity.  At its Gary Works facility, U. S. Steel will repair a large opening in a metal shell that surrounds a blast furnace.  The repair will eliminate excess emissions from that furnace. 

Since 2008, U. S. Steel has worked with the state of Illinois to improve its environmental compliance at the Granite City Works facility, including installation of a new baghouse to control particulate matter and rebuilding its Electro-Static Precipitator.  Under the consent decree, which resolves not only joint federal/state claims but also claims brought separately by the state of Illinois, U. S. Steel agrees to maintain the effective operation of its pollution control equipment and continue the work practices that have resulted in improved environmental compliance.

Many children in the Southwest Detroit, Ecorse and Gary areas attend schools that are lit by fluorescent ballasts that may contain polychlorinated biphenyls (PCBs).  As part of the settlement, U. S. Steel will conduct a joint federal/state supplemental environmental project (SEP) in which the company will remove and properly dispose of such PCB-contaminated ballasts and replace them with non-toxic, energy-efficient lighting.  U. S. Steel will also conduct another SEP to install vegetative buffers composed of trees, bushes and shrubs on public lands near high-traffic roadways in Southwest Detroit.  Such buffers are intended to reduce the transport of particulate matter emissions from heavily trafficked areas and thus improve downwind air quality. 

“These measures to improve air quality in Southwest Detroit and Ecorse are an important step to helping communities who suffer the most from violations of laws designed to protect human health and the environment,” said U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.

“We welcome the settlement with U. S. Steel and look forward to the improvements to be made at its Ecorse facility, schools in Ecorse and Detroit and along high traffic roadways in Southwest Detroit,” said Director C. Heidi Grether of the Michigan Department of Environmental Quality.  “More importantly, we welcome the improvement in the air quality of the region that we expect will come from these changes.”  

In addition, U. S. Steel will purchase a new street sweeper, equipped with enhanced collection capability, for use by the city of Granite City to reduce dust emissions.  Other SEPs, state-only, that U. S. Steel has agreed to undertake include the removal and proper disposal of waste tires that have been dumped at locations in Gary, replacement of some exterior doors in Granite City public schools with energy-efficient doors and creation of a greenway and transit bike trail within Granite City.

“Today’s consent decree should be welcome news to the residents of this district and everyone who lives in the greater St. Louis metropolitan area,” said U.S. Attorney Donald S. Boyce for the Southern District of Illinois.  “Air pollution is a serious problem that continues to threaten our world, and we applaud U. S. Steel for its ongoing cooperation and the improvements it has agreed to make to bring its Granite City facility into full compliance.  This office remains committed to enforcing the nation's environmental laws in the Southern District of Illinois."

“I applaud the united, collaborative effort by all parties who worked to resolve this matter and to hold accountable those responsible for polluting the environment,” said Indiana Attorney General Greg Zoeller.  “No one should be subjected to living and working in a polluted environment.”

Today’s settlement, lodged with the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period following notification in the Federal Register and final approval by the court.  To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.

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16-1371

DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Jesus C. Madrigal, 25, of Mishawaka, Indiana was sentenced before South Bend District Court Judge Jon. E. DeGuilio for possessing a firearm in furtherance of a drug trafficking offense. 

Madrigal was sentenced to 120 months’ imprisonment and 2 years supervised release.

According to documents filed in this case, Madrigal entered a guilty plea for possession of cocaine.  In March of 2016 Madrigal discharged a firearm at “would-be” robbers at his home in Mishawaka, Indiana to protect narcotics he had for sale. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive and the South Bend Police Department.  The case was handled by Assistant United States Attorney Frank E. Schaffer.

# # #

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Timothy Ryan, 32, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller for distribution, receipt, and possession of child pornography.

Ryan had been convicted by a jury on all counts on June 14, 2015, and today was sentenced to 157 months’ imprisonment and 5 years supervised release.

According to documents filed in this case, an undercover officer was able to download child pornography from a computer in Ryan’s home in February 2015, which led to a search of his home in May 2015, during which a computer containing child pornography was seized. 

This case was investigated by the Federal Bureau of Investigation and the St. Joseph County Sheriff’s department.  The case was handled by Assistant United States Attorney John M. Maciejczyk.

 

###

U.S. Attorney for the Northern District of Indiana David Capp announced today the return of two public corruption indictments; one naming Lake County Sheriff John Buncich and the other naming Portage Mayor James Snyder.

Buncich, his chief deputy, Timothy Downs, and William Szarmach were named in a multi-count indictment alleging a deprivation of honest services and receipt of illegal money in connection with towing contracts in Lake County.

Buncich is the Lake County Sheriff.  Buncich earlier served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014.  Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine what entity would do any towing as required by the sheriff’s department.  Downs is the chief in the Lake County Sheriff’s Department, the second person in command, having been appointed to that position by Buncich.  Szarmach owns and operates CSA Towing, located at 2599 DeKalb Street, Lake Station, Indiana.

The indictment alleges that from February 2014 continuing into October 2016, Buncich, Downs and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office.  The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters.  The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the city of Gary for ordinance violations.  Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.

Buncich is also charged individually with a violation of the federal bribery statute.  Specifically, Buncich is alleged to have corruptly solicited, demanded and received over $25,000 in cash and $7000 in checks in exchange for favorable actions by Buncich regarding the towing contracts. 

The second indictment names Portage Mayor James Snyder and John Cortina.  Snyder was first elected as mayor in 2011 and was re-elected to a second four-year term in 2015.  Cortina owns and operates a towing business, Kustom Auto Body, 5409 US Highway 6 in Portage.

Snyder and Cortina are both charged with a violation of the federal bribery statute.  Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina and Individual A (same individual above), in exchange for a towing contract in the city of Portage, Indiana.  Cortina is charged with corruptly offering those checks to Snyder.

Snyder is also charged with a second violation of the federal bribery statute.  That count alleges that between Jan. 1, 2012 and Jan. 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.

The final charge against Snyder alleges obstruction of the internal revenue laws.  This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the Internal Revenue Service’s (IRS) collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC.  Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt. 

“These investigations are not over,” said U.S. Attorney Capp.  “Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”

Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.

The U.S. Attorney’s Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

These indictments were the result of an extensive, ongoing investigation conducted by the FBI and IRS, Criminal Investigation Division.  Assistance was provided throughout by the Indiana State Police.  These indictments will be handled in the U.S. Attorney’s Office by Assistant U.S. Attorneys Philip C. Benson, Gary T. Bell and Jill R. Koster.

HAMMOND – United States Attorney David Capp announced today the return of two public corruption indictments; one naming Lake County Sheriff John Buncich and the other naming Portage Mayor James Snyder.

Buncich, his chief deputy Timothy Downs, and William Szarmach were named in a multi-count indictment alleging a deprivation of honest services and receipt of illegal money in connection with towing contracts in Lake County.

John Buncich is the Lake County Sheriff.  Buncich earlier served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014.   Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine what entity would do any towing as required by the sheriff’s department.  Downs is the Chief in the Lake County Sheriff’s Department, the second person in command, having been appointed to that position by Buncich.  Szarmach owns and operates CSA Towing, located at 2599 DeKalb Street, Lake Station, Indiana.

The indictment alleges that from February 2014 continuing into October 2016, Buncich, Downs and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office.  The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters.  The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations.  Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.

Buncich is also charged individually with a violation of the federal bribery statute.  Specifically, Buncich is alleged to have corruptly solicited, demanded and received over $25,000 in cash and $7000 in checks in exchange for favorable actions by Buncich regarding the towing contracts. 

The second indictment names Portage Mayor James Snyder and John Cortina.  Snyder was first elected as mayor in 2011 and was re-elected to a second four-year term in 2015.  Cortina owns and operates a towing business, Kustom Auto Body, 5409 US Highway 6 in Portage.

Snyder and Cortina are both charged with a violation of the federal bribery statute.  Snyder is alleged to have corruptly solicited and received two checks totaling $12000 from Cortina and Individual A (same individual above), in exchange for a towing contract in the City of Portage.  Cortina is charged with corruptly offering those checks to Snyder.

Snyder is also charged with a second violation of the federal bribery statute.  That count alleges that between January 1, 2012 and January 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.

The final charge against Snyder alleges obstruction of the internal revenue laws.  This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the IRS’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage, LLC.  Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt. 

United States Attorney Capp stated, “These investigations are not over.  Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”

Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

These indictments were the result of an extensive, ongoing investigation conducted by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division.  Assistance was provided throughout by the Indiana State Police.  These indictments will be handled in the United States Attorney’s Office by Assistant United States Attorneys Philip C. Benson, Gary T. Bell and Jill R. Koster.

 

# # #

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Tereso Cazares Galindo, 38, of Michigan City, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for having reentered the United States after having previously been deported following a felony conviction. 

Galindo was sentenced to 33 months’ imprisonment and two years of supervised release.

According to documents filed in this case, Galindo was arrested in April 2016.  In or around October 2004, Galindo was deported to Mexico following a conviction for armed robbery.      

This case was investigated by Homeland Security Investigations and the South Bend Police Department.  The case was handled by Assistant United States Attorney Jesse M. Barrett.

 

###

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Barbara West, 33, of South Bend, Indiana was sentenced before South Bend District Court Judge Jon. E. DeGuilio for possession with intent to distribute and distribution of methamphetamine.  

West was sentenced to 78 months’ imprisonment and 3 years supervised release.

According to documents filed in this case, on multiple occasions, West sold methamphetamine to undercover officers from her residence on Kenilworth Road in South Bend.  During the execution of a search warrant, officers found multiple drugs, drug paraphernalia along with money and several firearms. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department The case was handled by Assistant United States Attorney Kenneth M. Hays.

# # #

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Omar Loza, 33, of Elkhart, Indiana was sentenced before South Bend District Court Judge Jon. E. DeGuilio for possessing with intent to distribute and distribution of cocaine.

Loza was sentenced to 151 months’ imprisonment and 3 years supervised release.

According to documents filed in this case, Loza was involved in a group that shipped cocaine from Texas to Elkhart, Indiana.  Loza then arranged for shipments to be transported to Columbus, Ohio. 

This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation Division.  The case was handled by Assistant United States Attorney Frank E. Schaffer.

# # #

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Derek Fields, 30, of South Bend, Indiana was found guilty, after a 3-day jury trial, of kidnapping, transmitting a ransom demand, discharging a weapon during a crime of violence and felon in possession of a firearm.   He is the last of three co-defendants to be tried in this matter.   Ivan Brazier was convicted on July 13, 2016 of kidnapping and extortion and is scheduled to be sentenced on December 14, 2016.  Lindani Mzembe was convicted on August 24, 2016 of kidnapping, extortion, felon in possession, and use of a firearm in a crime of violence, and is scheduled to be sentenced on December 1, 2016. 

According to documents filed in this case, Fields and his codefendants possessed firearms as felons to unlawfully confine or kidnap an individual against their will and demanded a ransom for that individual.  A firearm was discharged, hitting the victim, during the kidnapping.    

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide.  This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.

 

# # #

HAMMOND- United States Attorney David A. Capp announced that Mohamed Fadiga, 43, of Indianapolis, Indiana was sentenced before Chief Judge Philip Simon for possession of counterfeit or unauthorized access devices.  Fadiga was found guilty by a jury after a 2-day trial.

Fadiga was sentenced to 30 months’ imprisonment and 1 year supervised release.

According to documents in this case, Fadiga possessed more than 15 counterfeit and fraudulent debit and credit cards which had been re-encoded with the personal information of victims from different jurisdictions but bearing his name.

This case was the result of an investigation by the Hobart Police Department and the United States Department of Homeland Security Investigations.  The case was prosecuted by Assistant United States Attorneys Toi D. Houston and Maria N. Lerner.

# # #

HAMMOND – United States Attorney David A. Capp announced that all defendants in the United States v. Weichman case entered guilty pleas today before Chief Judge Philip Simon. 

The following entered pleas of guilty:

• Jack Weichman, 64, of Dyer, Indiana –two counts of bank fraud, one count of concealment of assets, one count of wire fraud and one count of filing a false tax return.
• Ari Weichman, 36, of Schererville, Indiana-one count of bank fraud
• James Schaefer, 66, of Lowell, Indiana-one count of bank fraud
• William Bercaw, 69, of Munster, Indiana-one count of wire fraud

According to documents in this case, Jack Weichman, a local accountant and business owner, has entered guilty pleas to two counts of bank fraud, one count of concealing assets during a bankruptcy, one count of wire fraud, and one count of filing a false federal income tax return.   Weichman, the owner of an accounting practice that bears his name, Weichman & Associates, as well as a medical billing operation known as MMDS, stole $10,000 from one of his physician clients during a bank fraud scheme that saw at least $660,000 illegally removed from that client’s account.  Weichman also admitted hiding an almost $2 million dollar tax debt to the IRS from another bank at a time when he was seeking to renew a loan from that bank.  Weichman also admitted hiding hundreds of thousands of dollars from his bankruptcy creditors in January 2011, and removing $95,000 from a client’s retirement fund on April 25, 2012, by having one of his employees pretend to be the client during a phone call to the retirement fund. Finally, Weichman acknowledged that he failed to report to the IRS at least $100,000 in income.

Weichman’s employee, William Bercaw, entered his own guilty plea to one count of wire fraud relating to the $95,000 illegally removed from a client’s retirement fund account on April 25, 2012. 

Another Weichman employee, James Schaefer, along with Weichman’s son Ari Weichman, entered separate guilty pleas to a one count information charging them with providing false information to US Bancorp in an effort to secure a loan for Jack Weichman’s business, MMDS, by representing to US Bancorp that Ari Weichman was the owner and president of MMDS.

Sentencing for all defendants is set for January 27, 2017.

This case was investigated by the Federal Bureau of Investigation, Federal Deposit Insurance Corporation-Office of Inspector General and Internal Revenue Service-Criminal Investigation Division.  The case is being prosecuted by Assistant United States Attorneys Diane L. Berkowitz and Maria N. Lerner.

# # #

Marlonn Hicks, 30, of Crown Point, Indiana, pleaded guilty to distributing information regarding the manufacture and use of explosives, with the intent that the information be used for and in furtherance of a crime of violence.

Acting Assistant Attorney General for National Security Mary B. McCord, U.S.  Attorney David Capp of the Northern District of Indiana and Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Field Office announced the charges.

According to the documents in this case, Hicks allegedly communicated online with multiple individuals who were cooperating with the government. During these communications, Hicks allegedly expressed a desire to travel to territory under the control of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.

Within days of the Orlando, Florida terrorist attack, Hicks indicated that he would likely die in the U.S. and subsequently discussed the means by which he planned to carry out an attack within the U.S. During one of these online communications, Hicks sent a government source a document containing detailed instructions on how to make explosives. When Hicks sent the document to the government source, Hicks believed that the government source was a like-minded individual who would use the document and instructions to conduct an attack within the U.S. using explosives.  Hicks intended the attack to be carried out in the name of ISIL and in support of ISIL.

The case was investigated by the FBI’s Indianapolis Division and the Indianapolis Joint Terrorism Task Force. The case is being prosecuted by the National Security Division’s Counterterrorism Section and the U.S. Attorney’s Office of the District of Indiana.

 

WASHINGTON – Marlonn Hicks, 30, of Crown Point, Indiana, pleaded guilty to distributing information regarding the manufacture and use of explosives, with the intent that the information be used for and in furtherance of a crime of violence before a U.S. Magistrate Judge.  The Magistrate Judge is recommending that the district court accept the tendered guilty plea.  Parties have 14 days in which to object to the magistrate judge’s recommendation. 

Acting Assistant Attorney General for National Security Mary B. McCord, U.S.  Attorney David Capp of the Northern District of Indiana and Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Field Office announced the charges.

According to the documents in this case, Hicks allegedly communicated online with multiple individuals who were cooperating with the government. During these communications, Hicks allegedly expressed a desire to travel to territory under the control of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.

Within days of the Orlando, Florida terrorist attack, Hicks indicated that he would likely die in the U.S. and subsequently discussed the means by which he planned to carry out an attack within the U.S. During one of these online communications, Hicks sent a government source a document containing detailed instructions on how to make explosives. When Hicks sent the document to the government source, Hicks believed that the government source was a like-minded individual who would use the document and instructions to conduct an attack within the United States using explosives.  Hicks intended the attack to be carried out in the name of ISIL and in support of ISIL.

The case was investigated by the FBI’s Indianapolis Division and the Indianapolis Joint Terrorism Task Force. The case is being prosecuted by the National Security Division’s Counterterrorism Section and the U.S. Attorney’s Office of the District of Indiana.

 

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16-1268

IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

 

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Holly L. Nivens, 31, of Niles, Michigan was sentenced before Judge Jon E. DeGuilio, for possession with intent to distribute methamphetamine in excess of 500 grams.

Nivens was sentenced to 120 months’ imprisonment and 5 years of supervised release.

According to documents filed in this case, in April of 2016 Nivens received several pounds of methamphetamine after learning of the location of a large quantity of methamphetamine from a friend she met in prison.  When released, she retrieved the quantity of methamphetamine, aided by other individuals, and then sold it.  Nivens was arrested with six bricks of methamphetamine in her vehicle. 

This case was prosecuted as a result of an investigation by the Drug Enforcement Administration.  This case was handled by Assistant United States Attorney Jesse M. Barrett.

# # #

HAMMOND – United States Attorney David A. Capp announced that a federal grand jury in Hammond returned a single count indictment charging Alexis Young, 34, of Hammond, Indiana with aggravated identity theft. 

According to documents in this case, in October of 2016, Young allegedly stole personal information of an individual and committed an instant offense while on release and awaiting sentencing for a prior conviction. 

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case was investigated by the United States Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney Toi Houston.

# # #

HAMMOND – United States Attorney David A. Capp announced that Dipen Patel, 34, of Dyer, Indiana was charged with a criminal violation of the Federal Insecticide, Fungicide and Rodenticide Act, a/k/a FIFRA. 

According to documents filed in this case, the defendant knowingly distributed a pesticide in the State of Indiana which was not registered with the EPA as required.  The pesticide known as “DOOM” was applied to rooms at a motel located in Michigan City, Indiana and a motel located in Howe, Indiana.  Today, an information and plea agreement have been filed with respect to the criminal violation.  

The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case was the result of an investigation by the Northern District of Indiana Environmental Crimes Task Force lead by the Environmental Protection Agency-Criminal Investigation Division.  This case is prosecuted by Assistant United States Attorney Toi Denise Houston, Trial Attorney Richard J. Powers, U.S. Department of Justice, Environmental and Natural Resource Division, Environmental Crimes Section, and Special Assistant United States Attorney David P. Mucha, Environmental Protection Agency.

# # #

HAMMOND- United States Attorney David Capp announced today that Assistant United States Attorney (AUSA) Gary T. Bell will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.  AUSA Bell has been appointed to serve as the District Election Officer (DEO) for the Northern District of Indiana, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

            The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day. 

            In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Capp stated that AUSA/DEO Gary T. Bell will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone number 219-937-5656.

            In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The Indiana FBI Field Office can be reached by the public 24 hours a day, 7 days a week at 317-595-4000.

            Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

# # #

HAMMOND – United States Attorney David A. Capp announced that a federal grand jury in Hammond returned a 6 count indictment charging Monique Bowling aka Monique Boyd, 44, of Merrillville, Indiana with one count of theft from local government receiving federal funds, one count of aggravated identity theft and four counts of mail fraud.   

According to the indictment, Bowling allegedly stole and obtained by fraud more than one thousand Apple iPads and other computer equipment under the care, custody and control of the City of Gary.  The indictment also alleges, that Bowling used a deceased person’s state ID card with at least one other person and participated in a scheme to obtain pension checks of a deceased individual. 

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case is the result of the investigative efforts of the Federal Bureau of Investigation, Indiana State Police and Internal Revenue Service-Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Gary T. Bell.

# # #

HAMMOND- United States Attorney David A. Capp announced that Mark Warne, 46, of Brook, Indiana was sentenced before Chief Judge Philip Simon following his guilty plea to Bank Fraud.

Warne was sentenced to 78 months’ imprisonment, 2 years supervised release and ordered to pay $3, 410,223 in restitution.

According to document in this case, Warne, a former President of Community State Bank, devised a scheme to defraud the bank.  Warne caused Community State Bank to issue over six million dollars in fraudulent loans.  Warne obtained loans using the identities of four known individuals, three of whom were related to Warne and none of whom received any of the proceeds of the loans.

Warne concealed the loans from bank board members by creating two sets of minutes for the meetings of the board of directors, one for the bank’s board of directors to read and approve and second for the Federal Deposit Insurance Corporation (FDIC) examiners to review.  While the minutes shown to the FDIC examiners made it appear as if the bank’s board of directors was aware of the loans, the actual board minutes made no mention of the loans. Warne served as President of Community State Bank from on or about September of 2010 to September of 2015.  Warne’s employment with Community State Bank ended after his scheme to defraud the bank was uncovered.

This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General.  The case is being prosecuted by Assistant United States Attorneys Joshua P. Kolar and Abizer Zanzi.

 

# # #

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that, on October 4, 2016, Damiane Harris of Chicago, Illinois, was sentenced before Judge Philip P. Simon, for interstate transportation of stolen property.

Harris was sentenced to 24 months’ imprisonment and one year of supervised release.

According to court proceedings, Harris stole a semi-tractor from a truck dealer in Burr Ridge, Illinois and two trailers containing valuable crane weights from Griffith, Indiana, and sold the weights at a scrap yard in Chicago, Illinois. The items were recovered and returned to the businesses.

This case was investigated by the Federal Bureau of Investigations and Griffith Police Department.  This case was prosecuted by Assistant United States Attorney Abizer Zanzi.

               

# # #

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Maurice Dimitrie Moore, 28, of Indianapolis, Indiana was found guilty of Counts 2 and 3, making false statements to ATF, after a three-day jury trial.  He was found not guilty of Count 1, providing a firearm to a felon.

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case was prosecuted by Assistant United States Attorneys Jennifer Chang and Dean Lanter.

 

# # #

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Victor H. Martinez-Lopez, 39, of Vandalia, Michigan was sentenced before Judge Jon E. DeGuilio, for distribution of methamphetamine.

Martinez-Lopez was sentenced to 294 months’ imprisonment and 6 years of supervised release.

According to court proceedings, Martinez-Lopez made multiple trips across the United States to transport methamphetamine to Northern Indiana.  The court determined that the total amount of methamphetamine he transported and sold exceeded 45 kilograms.

This case was prosecuted as a result of an investigation by the Drug Enforcement Administration.  This case was prosecuted by Assistant United States Attorney Jesse M. Barrett.

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HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that six additional members of the Indiana/Kentucky/Ohio Regional Council of Carpenters were each charged by Information with one count of health care theft.   

According to the documents filed in this case, members of the Indiana/Kentucky/Ohio Regional Council of Carpenters illegally gained assets from the Indiana/Kentucky/Ohio Regional Council of Carpenters Welfare Fund, a union health care benefit program.  The defendants requested reimbursement of medical expenses by submitting to the carpenter’s welfare fund a fraudulent claim form and a copy of an un-negotiated personal check for reimbursement.  These documents gave the appearance that the defendants had paid a reimbursable health care expense.  Claims were processed from the union welfare fund reimbursing the defendants for these health care expenses that were never actually incurred.  Those who have been charged are as follows:

• Ryan Cundiff, 40, of Crown Point, Indiana

• Brian Ellis, 46, of Hobart, Indiana

• Christopher LeBell, 36, of Cedar Lake, Indiana

• Aaron Merkel, 36, of Valparaiso, Indiana

• Eric Murray, 37, of Williamsburg, Ohio

• Daniel Rehfeldt, 49, of Hobart, Indiana

This case was investigated by the United States Department of Labor, Office of the Inspector General and the Employee Benefits Security Administration.  This case was handled by Assistant United States Attorney Gary T. Bell.

The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court. 

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.                                                    

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FORT WAYNE –United States Attorney David A. Capp announced that a federal grand jury in Fort Wayne returned a 15 count indictment against Marianne Matchette, 50, of Roanoke, Indiana for access device fraud, aggravated identity theft, wire fraud and mail fraud. 

According to the indictment, Matchette allegedly used a number of company accounts that she was given access to as an employee for personal benefit.  The government will be seeking forfeiture of $156,776.11 in United States Currency which is the alleged amount of proceeds obtained as a result of the offenses related to the Indictment.     

This case was investigated by the Allen County Sheriff’s Department, Federal Bureau of Investigation and Indiana State Police. This case is being prosecuted by Assistant United States Attorneys Tina Nommay and Stacey Speith.

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Lindani Mzembe, 32, of South Bend, Indiana was found guilty, after a 2 ½ day jury trial, of kidnapping, extortion, discharging a weapon during a crime of violence and felon in possession of a firearm.

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide.  This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Alexander Newman, 26, of South Bend, Indiana was sentenced on August 18, 2016, before Judge Jon E. DeGuilio, for manufacturing methamphetamine and possession of destructive devices (bombs).

Newman was sentenced to 97 months’ imprisonment and 2 years of supervised release.

According to documents filed in this case, Newman was arrested on February 29, 2016 on outstanding warrants and was found to be in possession of materials used to manufacture methamphetamine.  Newman was also in possession of three destructive devices in his home in South Bend, Indiana.

This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.

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HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that five members of the Indiana/Kentucky/Ohio Regional Council of Carpenters were each charged by Information with one count of health care theft.   

According to the documents filed in this case, members of the Indiana/Kentucky/Ohio Regional Council of Carpenters illegally gained assets from the Indiana/Kentucky/Ohio Regional Council of Carpenters Welfare Fund, a union health care benefit program.  The defendants requested reimbursement of medical expenses by submitting to the carpenter’s welfare fund a fraudulent claim form and a copy of an un-negotiated personal check for reimbursement.  These documents gave the appearance that the defendants had paid a reimbursable health care expense.  Claims were processed from the union welfare fund reimbursing the defendants for these health care expenses that were never actually incurred.  Those who have been charged are as follows:

• Bradley Crostreet, 45, of Valparaiso, Indiana amount reimbursed $10,310.83

• Dennis Gardner, 52, of LaPorte, Indiana amount reimbursed $15,000

• Robert Gutierrez, 38, of Hammond, Indiana amount reimbursed $19,771

• Aaron Vaughan, 35, of Lake Station, Indiana amount reimbursed $13,000

• Joshua Westfall, 38, of LaPorte, Indiana amount reimbursed $ 6,380

This case was investigated by the United States Department of Labor, Office of the Inspector General and the Employee Benefits Security Administration.  As the investigation continues, we hope to charge others and issue a future press release. This case was handled by Assistant United States Attorney Gary T. Bell.

The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court. 

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.                                                       # # #

HAMMOND – United States Attorney David A. Capp announced that a federal grand jury in Hammond returned a 9 count superseding indictment charging Luis Allen Perez a.k.a. “LA”, 26, of East Chicago, Indiana with murder in aid of racketeering activity & RICO conspiracy in addition with numerous other charges. 

According to the indictment, Perez allegedly is a member of the Imperial Gangsters street gang and was involved in committing various acts in furtherance of the criminal enterprise.  Perez is alleged to have killed Manuel Martinez in East Chicago, Indiana on or about June 17, 2016 for the purpose of maintaining or increasing position in the gang.  During the June 17 killing Perez allegedly also attempted to murder another individual. 

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents.  The Lake County Prosecutor’s Office also has provided assistance.  The case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter.

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HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that John T. Springer 54, of Indianapolis, Indiana, was sentenced in Hammond Federal Court before Senior Judge James Moody for three counts of wire fraud.   

Springer was sentenced to 3 years’ probation to include 3 months of home detention and he was ordered to pay restitution in the amount of $30,315.99 to the victim. 

According to court filings, Springer was the Secretary-Treasurer of the Gary Professional Firefighters Association and an authorized signatory on general, holding and retiree bank accounts.  Per the union’s by-laws, expenditures of funds were for sanctioned bills and no member or officers were to derive personal profit from goods or services unless approved by the membership on a (2/3) vote during any regular or special meeting.  At no time was Springer authorized by vote of the union or any official to spend union funds for any personal expense or to fund any personal loan.  Nonetheless, from January 10, 2008 to September 25, 2012, Springer utilized $30,315.99 in union funds to pay for various items of a purely personal nature, including automotive-related loans and repairs, his home mortgage, attorney’s fees, and school tuition for his children.              

This case was investigated by the United States Department of Labor, Office of Inspector General. This case was handled by Assistant United States Attorney Jill R. Koster.

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