Northern District of Indiana

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Mark H. Olson, age 39, of Chesterton, Indiana, was sentenced Monday, January 11, 2016, in federal court by Chief Judge Philip Simon after pleading guilty to one count of distribution of child pornography.

Olson was sentenced to 135 months imprisonment, 10 years supervised release and ordered to pay restitution in the amount of $12,000. 

According to documents filed in the case, between May and September of 2013, Olson used his work computer at his place of employment to send and receive child pornography with numerous individuals he met through a foreign website. The images depicted actual minors under the age of eighteen, including prepubescent minors, engaging in sexually explicit conduct.     

This case was the result of an investigation by Homeland Security Investigations.  The case was handled by Assistant United States Attorney Abizer Zanzi.  

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HAMMOND – United States Attorney David Capp announced that:

David J. Nozick, Assistant U.S. Attorney for the U.S. Attorney’s Office, Northern District of Indiana;

Bruce R. Hegyi, Trial Attorney for the Department of Justice Capital Case Section;

Jason M. Gore, Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives;

Arthur L. Grist, Jr., Special Agent for the Federal Bureau of Investigation; and

Brian M. Paine, Sergeant for the East Chicago Police Department,

all received the highest award from the Department of Justice, Criminal Division during a ceremony in Washington D.C. on Monday, December 7, 2015.  Attorney General Loretta Lynch spoke at this ceremony recognizing outstanding law enforcement efforts throughout the country.

The award was presented for their outstanding performance in the investigation and prosecution of the Imperial Gangsters, particularly the conviction of the local leader, Juan Briseno.  Briseno was sentenced to six life sentences in prison earlier this year.  In total, 24 members or associates of this criminal organization were indicted, convicted and sentenced to substantial terms of imprisonment.

United States Attorney Capp stated, “All of us are extremely proud of the exemplary work by this law enforcement team.  The Imperial Gangster convictions have substantially reduced the level of violence in East Chicago.  The tireless work of these individuals has greatly benefitted the citizens of Northwest Indiana.  Yesterday’s award reflects the national importance and recognition of their efforts.”

East Chicago Police Chief Mark Becker stated, “Sgt. Paine’s award is a great honor for him and our department.  We look forward to our continued partnership with the federal and other local departments in our ongoing effort to enhance the safety of our communities.”

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HAMMOND – U.S. Attorney David Capp announced today that the United States Attorney’s Office, Northern District of Indiana collected nearly $11M in criminal and civil actions in Fiscal Year (FY) 2015.  This money, U.S. Attorney Capp explained, is returned to the United States Treasury and is substantially in excess of the operating budget for the United States Attorney’s Office.  U.S. Attorney Capp stated, “We have a great team of lawyers and support staff, civil and criminal, which focuses regularly on collecting money due to the taxpayers of the United States.”

Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.  The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.  

“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch.  “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver.  I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

In addition to our collection efforts, U.S. Attorney Capp also announced that his office, working with partner agencies and divisions, collected $7,721,481.00 in asset forfeiture actions in FY 2015.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used for crime victims and for a variety of law enforcement purposes.

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HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Wanda C. Shorter, 43, of Elkhart, Indiana, was found guilty, yesterday, after a four-day jury trial of all four counts charged by indictment in a health care billing fraud/aggravated identity theft case.

According to documents in this case, Empowerment Non-Emergency Medical Transportation, Inc. (hereafter "Empowerment") was an enrolled Medicaid provider.  The provider agreement for Empowerment showed that it was a commercial ambulatory service provider and that its business address was in Elkhart, Indiana.  Defendant Wanda C. Shorter founded Empowerment and submitted Empowerment's billings to Medicaid for payment and reimbursement of claims.  Ms. Shorter was the sole owner of Empowerment Non-Emergency Medical Transportation, Inc.  Indiana Medicaid reimburses enrolled health care providers, including commercial ambulatory service providers, for covered services that are provided to patients who are Medicaid eligible on the date of the provided service.  Providers enrolled in the Indiana Medicaid program agree to submit claims for only medically and reasonably necessary services that are covered under the program that are actually provided and to only seek compensation to which the provider is legally entitled.  Under the Indiana Medicaid Provider Agreement the State of Indiana entered into with all Medicaid providers, Medicaid providers are prohibited from submitting claims for services that are not medically necessary or are not actually provided or for which the provider is otherwise not legally entitled to receive payment.  From 2011 to 2014, in the Northern District of Indiana, the defendant knowingly engaged in a scheme to defraud Indiana Medicaid and knowingly misused the means of identification of Medicaid clients.  As part of the fraud scheme, the defendant caused billings and claims for reimbursement to be sent to Indiana Medicaid for transportation services that were never in fact provided.  Defendant Wanda Shorter caused billings and claims for reimbursement to be sent to Indiana Medicaid as well for the payment of inflated mileage claims and for medical transportation trips that had been cancelled and never occurred.  Further, the defendant caused billings to be sent to Medicaid that were up-coded, that is, the defendants caused billings to be sent that were submitted for higher reimbursement amounts than were justified based on the actual transportation services provided.  As part of the fraud scheme, the defendant knowingly used without lawful authority a means of identification of other persons during and in relation to her health care fraud scheme, including specifically that of multiple Medicaid beneficiaries.   The loss caused by the fraud here was in excess of $1 million dollars.

“This case is an example of a brazen misuse of taxpayer funds by fraudulently overbilling the Medicaid program for reimbursements. It also demonstrates how state and federal government can partner to investigate and bring a perpetrator to justice.  I want to once again personally thank David Capp and his team for their extraordinary efforts in serving justice and the people of Indiana,” said Indiana Attorney General Greg Zoeller, who also thanked the investigators and attorneys who worked on the case.

This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation and the Indiana Attorney General’s Office Medicaid Fraud Control Unit.  This case was prosecuted by Assistant United States Attorney Donald J. Schmid.

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HAMMOND – United States Attorney David Capp announced two additional indictments in the ongoing effort against criminal street gangs in Northwest Indiana.  In one indictment, seventeen members or associates of the Latin Kings, all Indiana based, were charged with racketeering and other offenses.  In a separate indictment, two additional members of the Two Six Nation were indicted for murder in aid of racketeering.

U.S. Attorney Capp stated, “We have repeatedly announced that if you are a member of a violent street gang we are coming after you.  Today’s indictments are the latest in our ongoing enforcement effort to eliminate these criminal organizations from Northwest Indiana.  It does not matter how old you are or when your criminal conduct occurred, you are next.”

The Latin King indictment charges 17 members and associates with a criminal conspiracy that spanned a time period from 2003 until November 2015.  It alleges that the following individuals were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated battery, kidnapping, sex trafficking and narcotics distribution:

Anton Lamont James aka “Ghost,” 19, of Hammond;

Jason Christopher Brown aka “Midnight,” 21, of Merrillville;

Javier Castillo, 19, of Hammond;

Rodolfo Carlos Flores aka “Big Head,” 29, of Hammond;

Francisco Gamez aka “Frank Nitti,” 30, of Portage;

Alexis Santos, 20, of Hammond;

Joseph Uvalle aka “Little Foot,” 33, of Crown Point;

Pierre Java Forest aka “Joker,” 21, of Harvey, IL;

Keith Trevor Manuel aka “Smiley,” 26, of Gary;

Aldon Perez aka “Spooky,” 20, of Hammond;

Jose Antonio Sanchez aka “Sly,” 26, of Hammond;

Julian Robert Rebeles aka “King Porky,” 24, of Hammond;

Mario Resendiz aka “Spank,” “Rio”, 23, of East Chicago;

Alberto Tirado aka “B Murda,” 25, of East Chicago;

Raymond Fazekas aka “Pirate,” 26, of Lake Station.   

The indictment alleges that these defendants were members of various Latin Kings factions in Hammond, East Chicago and Gary. The indictment also alleges a conspiracy to possess and distribute five kilograms of cocaine and 100 kilograms of marijuana against all of these same individuals, in addition to Sean Yancey aka “Demon,” 21 of Gary.

In addition Melinda Milton, 35, of East Chicago and Joseph Uvalle were charged with various counts of sex trafficking by fraud or coercion and interstate transportation for prostitution.

A previous Latin King indictment had charged Anton James, 19, of Hammond, with murder in aid of racketeering and murder resulting from the use of a firearm during a crime of violence 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. believing that he was Martin Hurtado Jr., whom James believed was a rival gang member.  This count carries over unchanged from the first indictment. 

Also, when James was arrested, Dalia Guerrero, 39, of Merrillville, mother of James, used threat of physical force against a witness in order to influence, delay and prevent testimony of a witness in an official proceeding.  A week after that incident, Jasmine McMichael, 22, of East Chicago was arrested and charged for her participation in the same confrontation.  Guerreo and McMichael were each charged with obstruction of justice under a separate indictment. They have pled guilty to that count, and are awaiting sentencing.   

In a separate indictment involving the Two Six Nation criminal organization, Anthony Laviena, 35, of Staten Island, New York, and Deaundra L. Joshua aka “D Ruff,” 45, of Gary, Indiana, were charged with murder in aid of racketeering and use of a firearm in connection with a crime of violence.  This is for their alleged roles in the killing of Albert “Greeny” Guzman.  The indictment alleges that, on or about October 6, 1999, Laviena and Joshua shot and killed Guzman for the purpose of maintaining and enhancing their positions within the gang. 

In addition, the Two Six Nation indictment alleges two more homicides committed by Two Six members in furtherance of this criminal organization. On January 5, 1991, Jesus Fuentes, who recently plead guilty in federal court to racketeering, and others shot an killed Miguel Fernandez, a Latin King member,  in East Chicago during an attempted robbery.  Also, on October 30, 1997, Fuentes directed Julio Cartagena, now deceased, of Hammond, to kill Edwardo Miranda in Gary as Miranda was believed to have stolen weapons from the Two Six.

The Two Six Nation indictment is being worked in conjunction with the United States Department of Justice, Criminal Division, Organized Crime and Gang Section.

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 cases are 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 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.  The Two-Six case is being prosecuted by Assistant U.S. Attorney David J. Nozick and Thomas M. McGrath of the Northern District of Indiana and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Douglas D. Jackson, age 26, of South Bend, Indiana, was sentenced to 295 months imprisonment, on Thursday, December 3, 2015, in federal court by Judge Robert L. Miller, Jr.  Jackson was convicted by a jury trial on July 16, 2015 to six counts of sex trafficking of a minor and one count of possession of a handgun in furtherance of a crime of violence. 

According to documents in the case, during May and June, 2014, Jackson transported a minor female to several cities throughout the Midwest for the purposes of prostitution.  These cities were Atlanta, Chicago, Indianapolis, Louisville, Memphis, Fort Wayne, and Grand Rapids.

This case was the result of an investigation by the Federal Bureau of Investigation, in coordination with the Michigan State Police and Wyoming Michigan Police Department.  The case was handled by the Assistant United States Attorney John M. Maciejczyk 

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HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Kenneth Culver, age 39, of Steger, Illinois, was sentenced Tuesday, December 1, 2015, in federal court by Judge Joseph S. Van Bokkelen after pleading guilty to 2 counts of bank robbery.

Kenneth Culver was sentenced to 37 months imprisonment and 2 years supervised release. 

According to documents in the case, Culver robbed a Chase Bank within Munster, Indiana on August 12, 2014 and again on December 3, 2014.  Culver passed a note to the tellers demanding money and stole $2675 and $1200 on each respective occasion.  Culver was initially arrested and charged in Lake County Court with the August robbery.  While on bond for the first robbery, he committed the second offense.   He was then charged with both crimes in federal court.    

This case was the result of an investigation by the Federal Bureau of Investigation in coordination with the Munster Indiana Police.  The case was handled by Assistant United States Attorney Thomas M. McGrath.  

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WASHINGTON – An Indiana resident was sentenced to more than two years in prison today for filing false federal income tax returns and perjury, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.

Jared E. Hochstedler, 40, of Fort Wayne, Indiana, was sentenced to 27 months in prison, one year of supervised release and ordered to pay $1,232,739 in restitution to the Internal Revenue Service (IRS).  According to court documents, Hochstedler pleaded guilty on Feb. 26 to two counts of willfully filing false income tax returns for 2008 and 2009 and one count of committing perjury during a deposition conducted by the U.S. Securities and Exchange Commission (SEC).

Hochstedler owned Enzyme Environmental Solutions (EESO), a company focused on creating cleaning products using enzymes.  As the owner of EESO, Hochstedler participated in stock exchanges of EESO stock with third party companies for which he received more than $2.8 million.  Hochstedler failed to report these funds as income on his 2008 and 2009 individual income tax returns.  In addition, Hochstedler received loans from these third party companies which he did not repay.  Hochstedler used a substantial portion of the loan proceeds for personal expenditures and failed to report that income on his tax returns.  In 2009, Hochstedler also sold stock in another company for more than $1 million and failed to report the full amount of the proceeds as a capital gain on his 2009 tax return. 

In June 2009, in the course of an investigation, the SEC deposed Hochstedler under oath regarding the stock transactions he executed with the third parties.  During the deposition, the SEC inquired about the details of the transactions and Hochstedler lied about the nature of the transactions and the amount of money he received.

Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Richard M. Rolwing and Christopher P. O’Donnell of the Tax Division, who prosecuted the case.  Acting Assistant Attorney General Ciraolo also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.

Additional information about the Tax Division and its enforcement efforts may be found on the division website.

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15-1471

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

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Edwin Tollinchi-Rodriguez, age 30, of East Chicago, Indiana, was sentenced Tuesday, December 1, 2015, in federal court by Judge Rudy Lozano after his guilty plea of transporting a minor across state lines with intent to engage in criminal sexual activity.

Edwin Tollinchi-Rodriguez was sentenced to 450 months imprisonment and 20 years supervised release. 

According to documents in the case, defendant Edwin Tollinchi-Rodriquez admitted in his guilty plea that on November 3, 2012, he knowingly transported an 11 year-old minor child, identified in public filings as “Jane Doe,” from the State of Indiana to the State of Illinois with intent that she engage in sexual activity that is prohibited by Illinois law, i.e., Criminal Sexual Assault under Illinois law.

At a hearing held on October 29, 2015, Jane Doe testified that the defendant began sexually abusing her when she was 8 years old and that he threatened to kill her, her family and himself if she disclosed the abuse.  Jane Doe explained that she believed Defendant’s threats because he had been violent with her, her mother and her brother on previous occasions. 

This case was the result of an investigation by the Federal Bureau of Investigation in coordination with East Chicago, Indiana and the Lansing, Illinois Police Departments.  The case was prosecuted by Assistant United States Attorney Jill R. Koster.  

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Erik D. Harbin, age 30, of Mishawaka, Indiana was sentenced on Monday, November 23, 2015, in federal court by Judge Robert L. Miller, Jr., after his guilty plea of being a felon in possession of a firearm. 

According to documents in the case, on March 17, 2015, the Mishawaka Police Department received a 911 call from a citizen reporting what appeared to be an armed kidnapping of a female in Mishawaka, Indiana.  Mishawaka Police, while responding to the area of the call, located a vehicle matching the description of the vehicle given by the caller and observed two people in the front seat and a female passenger in the rear seat.  The police conducted a felony stop on the vehicle.  After identifying the passengers in the vehicle, a victim was identified along with the driver of the vehicle and Harbin.  While being escorted to the police vehicle for questioning, Harbin yelled to the driver, “Don’t let them search the car.”  The driver gave police consent to search and the police recovered a .380 caliber firearm which was in the location where Harbin was sitting.  The victim had reported that Harbin had been carrying a firearm in the weeks prior to this incident. 

Harbin was sentenced to 117 months imprisonment and 3 years supervised release.  Harbin’s lengthy criminal history was a factor to him being sentenced close to the maximum statutory sentence of 120 months for being a felon in possession of a firearm.

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in coordination with the Mishawaka Police Department.  The case was handled by the Assistant United States Attorney Jesse M. Barrett.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that David M. Felske, age 25, of Michigan City, Indiana was sentenced in federal court, by Judge Jon E. DeGuilio, after his guilty plea of being a felon in possession of a firearm.

David Felske was sentenced to 100 months imprisonment and 3 years supervised release. 

According to documents in the case, in July 2015, Felske stole several firearms from a residence in LaPorte County, Indiana which included a .50 caliber revolver, (2) .357 caliber revolvers, a .38 caliber revolver, and a .45/410 caliber revolver.  Felske then sold these firearms to an undercover officer on July 23, 2015 knowing that these firearms had been stolen.  Felske has a prior felony conviction burglary, a Class B felony, in Indiana.

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the LaPorte County Sheriff’s Department and the Michigan City Police Department.  The case was handled by the Assistant United States Attorney Donald J. Schmid.  

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Brian M. Kandefer, age 37, of San Diego, California, was sentenced Wednesday, November 18, 2015, in federal court by Judge Robert L. Miller, Jr. after his guilty plea of wire fraud and money laundering.

Brian Kandefer was sentenced to 121 months imprisonment and ordered to pay $1.4 million dollars in restitution. 

According to documents in the case, K2 Capital Management Inc. did business as US Mortgage Bailout and USMortgageBailout.com with physical offices located in La Jolla, California.  Brian Kandefer was a 50% owner of K2 Capital Management Inc. dba US Mortgage Bailout and dba USMortgageBailout.com (hereafter "US Mortgage Bailout").  US Mortgage Bailout purported to be and advertised as mortgage "loan experts" which had "helped thousands of homeowners avoid foreclosure."  US Mortgage Bailout sold mortgage loan modification products and services to persons, located all over the United States, including the Northern District of Indiana, who were in trouble with their home mortgage loans.  As part of the fraud scheme that lasted from 2009 through 2010, US Mortgage Bailout which included Kandefer, used false advertising to defraud clients (victims) out of monies for loan modifications.  They also did not properly communicate or represent client interests in the scheme.  If they did represent clients for loan modifications, documentation was falsified regarding income and other financials.  US Mortgage Bailout had a 100% refund policy for clients who did not receive favorable outcomes, yet clients did not receive any refunds despite requests.    

This case was the result of an investigation by the United States Department of Housing and Urban Development, Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division.  The case was handled by the Assistant United States Attorney Donald J. Schmid.  

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HAMMOND-  United States Attorney David Capp announced today that a federal grand jury returned a superseding indictment charging Robert Battle, age 42, of East Chicago, Indiana  with knowingly and intentionally killing Reimundo Camarillo, Jr. on October 12, 2015, while engaged in a narcotics conspiracy.

The indictment alleges that beginning in approximately 2006 and continuing to October 12, 2015, Battle, along with unnamed others, conspired to distribute more than 5 kilograms of cocaine. The indictment alleges Battle used a firearm to kill Reimundo Camarillo, Jr., during and in relation to the conspiracy.  The indictment also alleges Battle possessed with intent to distribute cocaine and marijuana.  Battle had previously been indicted on October 22, 2015 for the marijuana offense after he was stopped on I-94 in Porter County.  Approximately 73 grams of marijuana and $100,700 in U.S. currency were seized during that stop.  Today’s indictment adds the cocaine and murder charges, and seeks forfeiture of that currency.

U.S. Attorney Capp advised that the decision to charge the case federally was a joint decision between the U.S. Attorney’s Office and the Lake County Prosecutor’s Office.  A key factor in the indictment decision was that the alleged events in the drug conspiracy span multiple jurisdictions and cross state lines.

Since the alleged murder of Camarillo is now included in this federal indictment the Lake County Prosecutor’s Office will dismiss a pending murder charge against Battle in Lake County arising out of the same events.

U.S. Attorney Capp stated, “We work regularly with Bernie Carter and his office and make joint decisions on which jurisdiction is best able to handle a particular case.  Often we defer to our State colleagues, and they in turn will defer to us on certain prosecutions.  We greatly appreciate this cooperative relationship.  It enables both offices to most effectively utilize their resources to protect the public.”

Lake County Prosecutor Bernard Carter stated, “I appreciate the continuous working relationship between my office and the U.S. Attorney’s Office.  Because of the cooperation between our offices we are able to jointly make charging decisions that best protect and benefit our community.”

Battle will soon be taken into federal custody and will have his initial appearance before a United States Magistrate Judge next week.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; East Chicago Police Department; and Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys David J. Nozick and Thomas M. McGrath.

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 Darrell L. Duncan, age 34, of South Bend, Indiana, was sentenced Wednesday, November 4, 2015, in federal court by Judge Robert L. Miller, Jr. after his guilty plea of being a felon in possession of a firearm.

Duncan was sentenced to 15 years’ imprisonment and 3 years supervised release.

According to documents in the case, May 14, 2015, the United States Marshals Service along with Task Force Agents and other officers from the South Bend Police Department attempted to apprehend Duncan for outstanding warrants.   During the operation, Duncan tried to back into a police vehicle and fled on foot.  Officers located a .25 caliber firearm that was loaded with one round in the chamber and seven rounds of ammunition in the magazine that was dropped by Duncan during the pursuit.  Duncan also dropped a bag containing approximately 3.1 grams of methamphetamine, approximately 24.4 grams of marijuana and 21 oxycodone pills.  Also located in Duncan’s vehicle was a backpack containing 22 rounds of .25 caliber ammunition as well as 2.7 grams of marijuana and additional rock like substances.  Duncan’s criminal history qualifies under the armed career criminal act for enhanced sentencing. 

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the South Bend Police Department.  The case was handled by the Assistant United States Attorney Donald J. Schmid. 

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HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Vahan Kelerchian, 56, of Richboro, Pennsylvania, doing business as Armament Services International “ASI”, was found guilty of a multitude of charges relating to the acquisition of machineguns and restricted laser aiming sites, late Thursday evening after a two-week jury trial.

According to evidence presented at trial, Kelerchian conspired with Joseph Kumstar and Ronald Slusser, two now former Lake County Police Officers, to knowingly make false statements relating to the acquisition of firearms.  Kumstar and Slusser, who have plead guilty, used their positions as sworn law enforcement officers in coordination with Kelerchian using his position as a Class 3 Federal Firearms Licensee to acquire approximately 71 fully automatic machineguns in the name of the Lake County Sheriff’s Department knowing that the Lake County Sheriff’s Department was not going to be the true owner of these weapons.  Kelerchian, Kumstar and Slusser conspired to use law enforcement letter head to create letters which falsely represented that the machineguns were going to be used by the Lake County Sheriff’s Department to carry out its law enforcement responsibilities since machineguns manufactured after 1986 can only be acquired by law enforcement agencies and not individual officers.  The machineguns were purchased for a cost of $1200 and $1600 and then when received by the Sheriff’s Department, transported offsite to be parted out.  The barrels (also known as the “upper”) were split with the officers and some were sent back to Kelerchian.  The “uppers” sold between $3000 and $3600 due to post-1986 parts not being available to the public because only law enforcement agencies or the military can acquire these weapons.

Kelerchian also used his company to assist Kumstar and Slusser to acquire 74 restricted laser aiming sights again using law enforcement letterhead from the Lake County Sheriff’s Department and the Lowell Police Department.  These laser sights were restricted by the Food and Drug Administration because they were class 3b lasers.  These lasers were designed, per a variance from FDA, to be used for law enforcement and military use only because they did not have the audible or manual safety locks as required for class 3b lasers.  The laser aiming sights had a visible laser that could be seen in excess of 50 feet and an invisible laser that could be used for targeting with infrared goggles in excess of 1 mile.  Kelerchian along with the officers used their positions to acquire these devices and sell them to the general public or keep the devices for themselves.

In addition to the charges above, Kelerchian was also found guilty of money laundering and false statements to the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding false demonstration letters involving high powered belt-fed machine guns.  Kelerchian was also charged with bribery but was found not guilty of that accusation.

This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Defense Criminal Investigative Services; Federal Bureau of Investigation; Food and Drug Administration, Office of Criminal Investigations; and the Internal Revenue Service, Criminal Investigation Division.  This case was prosecuted by Assistant United States Attorneys Philip C. Benson and Thomas M. McGrath.

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U.S. Attorney David Capp for the Northern District of Indiana announced that Vahan Kelerchian, 56, of Richboro, Pennsylvania, doing business as Armament Services International “ASI”, was found guilty of a multitude of charges relating to the acquisition of machineguns and restricted laser aiming sites, late Thursday evening after a two-week jury trial.

According to evidence presented at trial, Kelerchian conspired with Joseph Kumstar and Ronald Slusser, two now former Lake County Police Officers, to knowingly make false statements relating to the acquisition of firearms.  Kumstar and Slusser, who have pleaded guilty, used their positions as sworn law enforcement officers in coordination with Kelerchian using his position as a Class 3 Federal Firearms Licensee to acquire approximately 71 fully automatic machineguns in the name of the Lake County Sheriff’s Department knowing that the Lake County Sheriff’s Department was not going to be the true owner of these weapons.  Kelerchian, Kumstar and Slusser conspired to use law enforcement letter head to create letters which falsely represented that the machineguns were going to be used by the Lake County Sheriff’s Department to carry out its law enforcement responsibilities since machineguns manufactured after 1986 can only be acquired by law enforcement agencies and not individual officers.  The machineguns were purchased for a cost of $1200 and $1600 and then when received by the Sheriff’s Department, transported offsite to be parted out.  The barrels aka the “upper” were split with the officers and some were sent back to Kelerchian.  The “uppers” sold between $3000 and $3600 due to post-1986 parts not being available to the public because only law enforcement agencies or the military can acquire these weapons.

Kelerchian also used his company to assist Kumstar and Slusser to acquire 74 restricted laser aiming sights again using law enforcement letterhead from the Lake County Sheriff’s Department and the Lowell Police Department.  These laser sights were restricted by the Food and Drug Administration (FDA) because they were class 3b lasers.  These lasers were designed, per a variance from FDA, to be used for law enforcement and military use only because they did not have the audible or manual safety locks as required for class 3b lasers.  The laser aiming sights had a visible laser that could be seen in excess of 50 feet and an invisible laser that could be used for targeting with infrared goggles in excess of one mile.  Kelerchian along with the officers used their positions to acquire these devices and sell them to the general public or keep the devices for themselves. 

In addition to the charges above, Kelerchian was also found guilty of money laundering and false statements to the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding false demonstration letters involving high powered belt-fed machine guns.  Kelerchian was also charged with bribery but was found not guilty of that accusation. 

This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Defense Criminal Investigative Services; Federal Bureau of Investigation; Food and Drug Administration, Office of Criminal Investigations; and the Internal Revenue Service, Criminal Investigation Division.  This case was prosecuted by Assistant U.S. Attorneys Philip C. Benson and Thomas M. McGrath.

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Linn Johnson, age 40, of Michigan City, Indiana, was sentenced Thursday, October 8, 2015, in federal court by Judge Robert L. Miller,Jr. after his guilty plea to possession of child pornography.

Johnson was sentenced to 144 months’ imprisonment and 5 years supervised release.

According to documents in the case, on May 29 and 30, 2013, an undercover officer, working online, was able to download child pornography that was being shared by Johnson on the internet.  On December 6, 2013, officers served a search warrant at Johnson’s residence and seized a computer that contained child pornography.  His sentence was enhanced because Johnson admitted, when interviewed, to having molested a 7 year old child.  Johnson has been in custody since his arrest on December 6, 2014.

This case was the result of an investigation by Federal Bureau of Investigation and Michigan City Police Department.  The case was handled by the Assistant United States Attorney John M. Maciejczyk. 

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Isaiah C. Fisher, 34, of Michigan City, Indiana, was sentenced today in federal court by Judge Robert L. Miller, Jr for robbery of a credit union.

Fisher was sentenced to 188 months’ imprisonment, 3 years supervised release and ordered to pay $11,460.00 in restitution.

According to documents in the case, on April 16, 2015, at around 10:49 A.M., Fisher entered a credit union located in Michigan City, Indiana, jumped over a teller counter and announced that the place was being robbed.  Fisher told police that he carried a box cutter into the Credit Union and fashioned the covering over the box cutter to resemble a firearm.  The funds of the institution are insured by the National Credit Union Administration, a federal entity. The total amount of loss reported by bank personnel was $11,460.

This case was the result of an investigation by Federal Bureau of Investigation and the Michigan City Police Department.  The case was handled by the Assistant United States Attorney William T. Grimmer. 

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FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announces that on October 6, 2015, Ayad Al-Shaibani, 44, of Fort Wayne, Indiana was sentenced to 3 years’ probation with 6 months’ home detention and was ordered to pay $1,714,207.10 following his plea of guilty for food stamp benefits fraud. 

U.S. Department of Agriculture, Office of Inspector General, Special Agent-in-Charge Anthony V. Mohatt said: The Supplemental Nutrition Assistance Program (SNAP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint effort in this investigation helps brings to justice individuals who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our local law enforcement partners in order to protect the integrity of this and other USDA programs and to pursue prosecution of those who commit fraud.

According to documents filed in the case, on or about February 6, 2013, Al-Shaibani did knowingly acquire and possess United States Department of Agriculture food stamp benefits from an Electronic Benefit Transfer (EBT) Card for a transaction in excess of $100 in a manner not authorized by the Food Stamp Program.  By swiping and accepting an EBT card for $128.00 from a customer for the purchase of some eligible food items (4 Energy Drink cans), Al-Shaibani violated 7 U.S.C. 2024(b)(1) .

In his plea agreement he agreed to repay restitution to the United States Department of Agriculture, Food and Nutrition Service and to forfeiture of a personal money judgment in the amount of $1,714.207.10.  This sum represented the count of conviction and all relevant conduct between 2008 and 2013 for food stamp trafficking at his store, the Calhoun Market, S. Calhoun Street, Fort Wayne Indiana.  Calhoun Market had been authorized in 2007 to accept Supplemental Nutrition Assistance Program (SNAP) benefits for eligible food items. The SNAP benefits were provided to eligible recipients by virtue of an electronic benefit transfer (EBT) device in Indiana called the Hoosier Works card.

This investigation was conducted by the United States Department of Agriculture, Office of Inspector General, Investigations and was assisted by the Federal Bureau of Investigation.  This case was prosecuted by Assistant United States Attorney Tina Nommay.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Tiffany Thomas, 29, of South Bend, Indiana, was sentenced today for health care billing fraud and aggravated identity theft.

Thomas was sentenced to 61 months imprisonment and two years supervised release.

According to documents in the case, in 2014 and 2015, Thomas obtained prescriptions and medications including alprazolam, hydrocodone, promethazine and others fraudulently and then caused fraudulent billings and claims for reimbursement through Indiana Medicaid and other health care benefit programs.  As part of the fraud scheme, the defendant caused fraudulent and phony prescriptions for medications to be called in and otherwise presented to pharmacies by persons pretending to be licensed doctors or the staff or licensed doctors.  As part of the scheme, Thomas also fraudulently used the means of identification of others persons.  Finally, Thomas also throughout the scheme sold and distributed the medications, including controlled substances that she obtained fraudulently.

This case was the result of an investigation by the Bureau of Alcohol, Tobacco Firearms and Explosives and the State of Indiana Attorney General’s Medicaid Fraud Control Unit.  The case was prosecuted by the Assistant United States Attorney Donald J. Schmid.

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HAMMOND-  United States Attorney David Capp announced today that a federal grand jury returned a 36 count superseding indictment charging Jack Weichman, 63, of Dyer, Indiana; Ari Weichman, 35, of Schererville, Indiana; James Schaefer, 65, of Lowell, Indiana; and William Bercaw, 68, of Munster, Indiana with participation in several schemes in violation of federal law.  The previous indictment charged nine counts of bank fraud, fourteen counts of bankruptcy fraud, two counts of money laundering, four counts of wire fraud, and five counts of filing false federal income tax returns.  The new indictment adds a count of conspiracy to conceal assets in a bankruptcy proceeding, and an additional count of concealment of assets.  The new indictment also adds three additional defendants.  It charges Ari Weichman, son of defendant Jack Weichman, and James Schafer, Accounting/Tax Manager for the Weichman and Associates accounting firm, in the concealment of assets conspiracy.  It also adds William Bercaw, a CPA employed at Weichman and Associates, as a defendant in the wire fraud counts.

The  new charge of conspiracy to conceal assets alleges that Jack Weichman conspired with Ari Weichman and James Schafer to conceal assets from the bankruptcy court in an effort to hide Jack Weichman’s true financial condition.  The indictment alleges James Schafer filed monthly reports with the bankruptcy court that disguised assets, in the amount of $790,000.00, as business expenses in the form of payments to Ari Weichman as an employee of Weichman and Associates and of MMDS, another Jack Weichman owned and operated medical billing company, when in fact Ari Weichman never worked for either company.

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

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.

 

# # #

HAMMOND- United States Attorney David A. Capp announced today that an Indictment was filed against Pamela Griffin Frizzelle, 52, of Merrillville, Indiana for seven counts of Hobbs Act Extortion.

According to documents filed in the case, Frizzelle, an employee of the Township Assessor’s Office, allegedly solicited money from business owners, who’s businesses engaged in interstate commerce, in exchange for reducing or attempting to reduce tax assessments on or about the following dates: March 2013 from Business Owner 1 for $1000; February 2014 from Business Owner 2 for $200; February 2014 from Business Owner 3 for $600; October 14, 2014 from Business Owner 2 for $400; October 23, 2014 from Business Owner 2 for $200 on behalf of Business Owner 4; October 24, 2014 from Business Owner 4 for $600; and January 25, 2015 from Business Owner 5 for $1000.  

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

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.

# # #

 

A former chief deputy auditor for LaPorte County, Indiana, was convicted today by a federal jury in the Northern District of Indiana of embezzling over $150,000 from the LaPorte County government, tax fraud and defrauding her elderly father-in-law out of at least $400,000. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana made the announcement. 

Mary Ray, 67, of La Porte, Indiana, was convicted of two counts each of theft of government monies and making false statements on a tax return, and with seven counts of wire fraud.  Ray will be sentenced by Judge Jon E. Deguilio of the Northern District of Indiana on Dec. 22, 2015.

According to evidence presented at trial, from September 2011 through December 2012, while she served as deputy chief auditor for LaPorte County, Ray embezzled over $150,000 from county coffers, and underreported her income on her U.S. Individual Tax Returns for those years by failing to report the embezzled funds.  Evidence at trial also showed that Ray defrauded her 86-year-old father-in-law, a disabled veteran, out of at least $400,000 that he entrusted her to oversee.  The trial evidence also demonstrated that Ray used the funds that she embezzled from LaPorte County and stole from her father-in-law to gamble at casinos. 

This case was investigated by the FBI and IRS-Criminal Investigation, with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts.  The case is being prosecuted by Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana.

WASHINGTON – A former chief deputy auditor for LaPorte County, Indiana, was convicted today by a federal jury in the Northern District of Indiana of embezzling over $150,000 from the LaPorte County government, tax fraud and defrauding her elderly father-in-law out of at least $400,000.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana made the announcement.

Mary Ray, 67, of La Porte, Indiana, was convicted of two counts each of theft of government monies and making false statements on a tax return, and with seven counts of wire fraud.  Ray will be sentenced by Judge Jon E. Deguilio of the Northern District of Indiana on Dec. 22, 2015.

According to evidence presented at trial, from September 2011 through December 2012, while she served as deputy chief auditor for LaPorte County, Ray embezzled over $150,000 from county coffers, and underreported her income on her U.S. Individual Tax Returns for those years by failing to report the embezzled funds.  Evidence at trial also showed that Ray defrauded her 86-year-old father-in-law, a disabled veteran, out of at least $400,000 that he entrusted her to oversee.  The trial evidence also demonstrated that Ray used the funds that she embezzled from LaPorte County and stole from her father-in-law to gamble at casinos.

This case was investigated by the FBI and IRS-Criminal Investigation, with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts.  The case is being prosecuted by Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana.

 

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HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today, September 17, 2015, the Office hosted a symposium for law enforcement, prosecutors, schools, department of child services and others to educate officials about the signs of human trafficking and how to combat it.

“The Northern District of Indiana is fully engaged with our federal, state and local law enforcement partners along with governmental and non-governmental organizations in preventing, fighting and aggressively prosecuting all forms of human trafficking”, said U.S. Attorney Capp.

Human trafficking is the recruitment, harboring, transportation or procurement of a person for labor or services that are involuntary servitude, slavery or forced commercial sex acts.  The Department of Justice and our Office have made a commitment to combat these horrific crimes by aggressively bringing traffickers to justice and providing assistance to victims.

The training today was a result of a combined effort between the Federal Bureau of Investigation, the Department of Homeland Security and the U.S. Attorney’s Office in Northern Indiana.  The training provided the 100 plus registered attendees with the tools needed to identify, investigate and prosecute all forms of human trafficking.

If you have any information on possible human trafficking, please contact either the Polaris Project National Human Trafficking Hotline at 888-373-7888 or the Department of Homeland Security Tip line at1-866-DHS-2-ICE. 

# # #

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that DeCarlos Frazier, 32, of Chicago, Illinois, was found guilty after a three-day jury trial of being a felon in possession of a firearm.

According to documents in this case, on March 29, 2014 East Chicago Police observed two males loitering in the area of 149th and Baring Avenue.  As officers approached in a marked squad car and attempted to make contact with the subjects, DeCarlos Frazier fled on foot tossing a .38 caliber revolver handgun from his person.  When a criminal history was run, it revealed that Frazier had prior a felony conviction for aggravated robbery.

This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department.  This case was prosecuted by Assistant United States Attorneys Jennifer Chang-Adiga and Dean R. Lanter.

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FORT WAYNE-  United States Attorney David Capp announced that Luis Ramirez-Munoz, 29, of Howe, Indiana was charged in a 5 count Indictment returned by the Grand Jury on August 26, 2015.

According to documents filed in the case, Ramirez-Munoz distributed cocaine on two occasions in March of 2015, and he distributed and possessed with intent to distribute large quantities of methamphetamine on three occasions in July of 2015.

This case was investigated by Drug Enforcement Administration in coordination with the IMAGE Drug Task Force, Allen County Drug Task Force, Lagrange County Sheriff’s Department, Lagrange Police Department, Ligonier Police Department, Steuben County Sheriff’s Department, Noble County Sheriff’s Department, and Fort Wayne Police Department.  The case is being prosecuted by Assistant United States Attorneys Anthony W. Geller.

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.

# # #

 

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today, on August 27, 2015 Clark Holesinger, 53 of Valparaiso, Indiana, was sentenced for wire fraud and money laundering.

Holesinger was sentenced by Judge Robert L. Miller, Jr in South Bend District Court to 120 months imprisonment, 1 year supervised release, and ordered to pay restitution in the amount of $986,480.01.

According to the information and plea filed in April 2015, the charges relate to Holesinger’s practice of law in Porter County, Indiana, and his fraudulent use of clients’ funds.

This case was the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, Social Security Administration-Office of Inspector General and was prosecuted by the Assistant United States Attorney William T. Grimmer. 

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HAMMOND- United States Attorney David A. Capp announced today that Richard Balderas, 19 of Hammond, Indiana was indicted for one count of being a felon in possession of a firearm and one count of possession of a firearm with an obliterated serial number.

According to documents filed in the case, on August 19, 2015 Balderas, who has a prior felony conviction through state court, was found in possession of a .357/.38 caliber revolver during the execution of a search warrant.  The firearm that was found in the defendant’s possession had a filed off serial number.

This case is being investigated by the Federal Bureau of Investigation Gang Response Investigative Team (GRIT) and Hammond Police Department.  The case is being handled by Assistant United States Attorney David J. Nozick.

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.

# # #

 

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today that Schickell Best, 27, of Gary, Indiana was sentenced to 51 months imprisonment and 2 years of supervised release by District Court Judge James Moody after pleading guilty to being a felon in possession of a firearm.

According to documents filed in this case, on September 28, 2013, Best was arrested by law enforcement at the a bar in Gary, Indiana after being observed standing outside the bar as it was closing in possession of a loaded Norinco model SKS semi-automatic rifle.  Best had prior felony convictions including one for Battery on Law Enforcement.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Gary Police Department.  The case was prosecuted by Assistant United States Attorney Thomas M. McGrath. 

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FORT WAYNE- United States Attorney David A. Capp announced today that Brent A. Garrett, 38 of Bluffton, Indiana was charged with knowingly possessing firearms, including machineguns and other firearms, which were not registered to him in the National Firearms Registration and Transfer Record.

According to documents filed in the case, on or about May 15 through August 6, 2015, Mr. Garrett knowingly possessed firearms, including machineguns, silencers, and a short-barreled rifle, which were not properly registered to him in the National Firearms Registration and Transfer Record.  During the investigation, an undercover ATF agent purchased fully automatic machineguns (one receiver and one assembled machinegun) and several silencers from Mr. Garrett, and Mr. Garrett possessed additional unregistered items at his home.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Bluffton Police Department, Fort Wayne Police Department, Indiana State Police and Wells County Sheriff’s Department.  The case is being handled by Assistant United States Attorney Anthony W. Geller.

The United States Attorney's Office emphasized that a 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.

# # #

HAMMOND- United States Attorney David A. Capp announced today that Jasmine McMichael, 22 of East Chicago, Indiana was charged with using the threat of force against a witness.

According to documents filed in the case, McMichael, the sister of Anton Lamont James, used threat of physical force against a witness.  McMichael, along with her mother Dalia Guerrero, confronted a witness after James was arrested and allegedly made threatening statements to the witness.  Dalia Guerrero was indicted on July 16, 2015 for her participation in the same confrontation.

Anton Lamont James was indicted last week for murder in aid of racketeering and was arrested for that offense on the morning of July 16.

United States Attorney David Capp stated, “Witness intimidation in any manner by any person will not be tolerated.”

This case is being investigated by the Federal Bureau of Investigation and Hammond Police Department.  The case is being handled by Assistant United States Attorney David J. Nozick.

The United States Attorney's Office emphasized that a 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.

# # #

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Douglas D. Jackson, 26, of South Bend, Indiana, was found guilty on July 16, 2015, after four-day jury trial, of six counts of sex trafficking a minor and one count of possessing a firearm in furtherance of a crime of violence.

According to the evidence presented at trial, Jackson transported a minor female to Atlanta, Georgia; Louisville, Kentucky; and Grand Rapids, Michigan for purposes of prostitution in June, 2014.  He was arrested in Grand Rapids, Michigan on June 14, 2014 and charged with state offenses in Michigan.   That state prosecution was dropped in favor of the Indiana federal prosecution when the investigation revealed that Jackson had transported the minor to other states from South Bend, Indiana

Sentencing for Jackson is scheduled for October 22, 2015.  The six counts of sex trafficking a minor each carry 10 year mandatory minimum sentences, and the firearm count is a five year mandatory minimum consecutive sentence.  Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.

This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of the Michigan State Police and the Wyoming Michigan Police. This trial was handled by Assistant United States Attorney John M. Maciejczyk

# # #

WASHINGTON – In two separate cases, two members of the Two Six nation and one member of the Latin Kings were indicted for murder in aid of racketeering and other offenses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.

“Prosecutions, like the one announced here, demonstrate the effectiveness of the task force approach to fighting gang violence,” said Assistant Attorney General Caldwell.  “Along with our partners, the Criminal Division will aggressively work to release the grip that gangs hold on many neighborhoods across this country.”

“If you are a member of a violent street gang and you committed a murder or other violent act last week or last decade, we are coming at you,” said U.S. Attorney Capp.  He also reiterated his office’s continuing commitment to removing all members of these violent street gangs from the streets on northwest Indiana.

Marcus Lovell Jenkins, 26, of East Chicago, Indiana, and Charles Garcia-Berrios, 22, of Hammond, Indiana, were charged by superseding indictment with murder in aid of racketeering and use of a firearm in connection with a crime of violence for their alleged roles in the killing of Kemond Coleman.  Jenkins also is charged with possession of a firearm by a prohibited person.

According to the allegations in the indictment, Jenkins and Garcia-Berrios are members of the Two Six Nation street gang.  The indictment alleges that, on July 26, 2014, Jenkins and Garcia-Berrios shot and killed Coleman for the purpose of maintaining and enhancing their positions within the gang.  Garcia-Berrios and Two Six member Julio Ivan Cartagena previously were charged with the attempted murders of two individuals in this case.  All three defendants are in federal custody.

In a separate case, Anton James, 19, of Hammond, was charged by indictment with murder in aid of racketeering and murder resulting from the use of a firearm during a crime of violence for his alleged role in the murder of Martin Hurtado Sr.  According to the allegations in the indictment, James is a member of the Latin Kings street gang.  The indictment alleges that, on Oct. 28, 2014, James shot and killed Hurtado Sr. believing that he was Martin Hurtado Jr., whom James believed was a rival gang member.  James made his initial appearance in federal court this afternoon before Magistrate Judge Andrew Rodovich of the Northern District of Indiana.

An charges and allegations in the indictments are merely allegations.  The defendants are presumed innocent until and unless proven guilty.

These cases are the result of the investigative efforts of the FBI, the ATF, the East Chicago 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 Jenkins case is being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David Nozick of the Northern District of Indiana.  The James case is being prosecuted by Assistant U.S. Attorney Nozick.

# # #                              

 

HAMMOND- United States Attorney David A. Capp announced today that Dalia Guerrero, 39 of Merrillville, Indiana was indicted for using the threat of force against a witness.

According to documents filed in the case, Guerrero, the mother of Anton Lamont James, used threat of physical force against a witness.  Guerrero allegedly told the witness she knew what the witness looked like, where they live and to watch their back with the intent to influence, delay and prevent the testimony of the witness in an official proceeding.

David Capp stated, “This incident occurred this morning around 9:20 am, Ms. Guerrero was indicted this morning and taken into custody before noon today.  Witness intimidation will not be tolerated.”

This case is being investigated by the Federal Bureau of Investigation and Hammond Police Department.  The case is being handled by Assistant United States Attorney David J. Nozick.

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.

# # #

SOUTH BEND-  United States Attorney David Capp announced today that DeAngelo Sconiers, 43, South Bend, Indiana was charged by Criminal Complaint for distribution of cocaine.

According to documents filed in the case, on June 29, 2015 and again on July 10, 2015 undercover agents conducted controlled drug buys of 28 grams of cocaine from Sconiers.

This case was investigated by Drug Enforcement Administration in coordination with the South Bend Metro Special Operations Section of the South Bend Police Department.  The case is being prosecuted by Assistant United States Attorneys Frank E. Schaffer.

The United States Attorney's Office emphasized that a 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.

 

 

# # #

HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Samuel L. Bradbury, 23, of Pine Village, Indiana, was found guilty, late July 2, 2015, after a weeklong jury trial, of maliciously conveying false information.

According to the evidence presented at trial, on June 19, 2014, Bradbury posted threats on social media to kill two specific law enforcement officials and two specific judges in Tippecanoe County.  He also threatened to damage the Tippecanoe County Courthouse along with police vehicles using thermite, an incendiary device.  On June 21, 2014, law enforcement executed search warrants on the house where Bradbury lived, locating the social media posting along with other relevant evidence to include materials to make thermite.

Sentencing for Bradbury will be scheduled at a later date by a separate court order. Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.

This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of Tippecanoe County Law Enforcement Agencies. This trial was handled by Assistant United States Attorneys Jill Koster and Abizer Zanzi.

 

 

 

# # #

HAMMOND- United States Attorney David A. Capp announced today that a criminal complaint was filed against Brendan Theodore Coetzee, 27, of Johannesburg, South Africa for travel with intent to engage in illicit sexual conduct with a minor.   

According to documents filed in the case, Coetzee, a carnival worker, met a female under the age of 14 at a carnival in Wisconsin over this past Memorial Day weekend.  Coetzee and the minor maintained some contact thereafter via social media.  On June 22, 2015, Coetzee, who was then in Northwest Indiana, arranged for the minor to meet him at a motel in Lansing, Illinois, where he allegedly had sexual intercourse with the minor.

This case was investigated by the Federal Bureau of Investigation with the assistance of the Lansing, Illinois and Munster, Indiana Police Departments.  The case is being prosecuted by Assistant United States Attorney Toi D. Houston.

The United States Attorney's Office emphasized that a 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.

# # #

WASHINGTON – Calumite Company LLC, a manufacturer of an additive used in the production of glass, was sentenced today in U.S. District Court in Hammond, Indiana, in connection with its September 2014 plea of guilty to two Clean Air Act false statement violations.  The company was sentenced to pay a $325,000 fine, serve a two year term of probation and implement an environmental compliance plan that includes an annual environmental compliance training program.  

Calumite, located near the shores of Lake Michigan in Portage, Indiana, manufactures and sells a powdery substance of the same name to various glass manufacturers.  The company collects slag, a waste product of the steel industry, dries it in a hot gas oven, crushes it into a fine powder and then ships it off-site to glass manufacturers, who use it as an additive to lower the temperature at which glass can be produced. 

Calumite's Portage facility was subject to a Title V Clean Air Act Operating Permit issued by the Indiana Department of Environmental Management (IDEM).  Among other things, the permit required that Calumite operate, maintain and monitor several “baghouses” on site that are used to control and minimize emissions of a fine particulates.  One of the baghouses, known as the loadout baghouse, was used to collect emissions of particulate that occurred during the loading of product onto tractor trailers and rail cars for shipment to customers.

A differential pressure gauge (DP gauge) attached to each baghouse continuously monitored and measured the efficiency and effectiveness of the baghouses, to determine whether they were operating properly.  Calumite's Clean Air Act permit required that DP gauges on the baghouses be read daily, while the baghouses were operating and that the results be recorded on daily maintenance log sheets.  The company also was required to submit quarterly reports to IDEM that stated whether the company was in compliance with permit requirements.

From Dec. 5, 2008, through late July 2009, Calumite did not maintain the loadout baghouse in operating condition and the DP gauge was broken.  Nevertheless, during this same time period, employees continued to load tractor trailers and rail cars with product for shipment off-site.  Calumite employees also knowingly continued to routinely fill out daily logs that falsely reflected DP gauge monitoring readings that were within the range allowed by the permit and caused false information to be submitted to IDEM in the company’s quarterly reports.

The Clean Air Act makes it a crime to knowing make a material false statement or omit material information from a document that is required to be filed or maintained under the statute.  Both the daily maintenance logs and the quarterly reports were required by Calumite’s permit and the Clean Air Act.  

The case was investigated by the Northern District of Indiana Environmental Crimes Task Force, including agents from the U.S. Environmental Protection Agency’s Criminal Investigation Division and the Indiana Department of Environmental Management’s Office of Criminal Investigations.  The case was prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division. 

 

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Fort Wayne, Indiana - The United States Attorney's Office announced the return of an indictment charging Kelly Custer, 53, of Fort Wayne, Indiana; William Custer, Jr., 26 of Fort Wayne, Indiana; Ashley Custer, 25, of Fort Wayne, Indiana; and Sidney Custer, 24, of New Haven, Indiana --- with 1 count of conspiracy to commit wire fraud.  Kelly Custer was also charged with 3 counts of wire fraud and 3 counts of interstate communications with intent to extort.  The government is also seeking forfeiture by way of a money judgment in the amount of approximately $1.5 million as well as forfeiture of real property.  .

According to documents filed in this case, on March 19, 2015, individuals reported to law enforcement that they were being extorted by the mafia.  The individuals provided information detailing an extortion scheme that started in 2007 when they lived in Fort Wayne and continued as they moved to Florida where they currently reside.

According to the individuals, the extortion began after they were informed by Kelly Custer that the mafia had determined that they owed a debt and that if they did not pay the debt their lives, their friends’, families’ lives or her life would be in jeopardy.  The individuals indicated that they initially received all the information concerning the extortion through Kelly Custer, and that she relayed the threats and demands to them personally.   After the individuals moved to Florida, however the threats continued from Kelly Custer in the form of texts causing the individuals to believe some messages came from actual mafia members.  In February of 2015, the individuals were informed that Kelly Custer had been killed as a result of problems she had with the mafia; however the individuals continued to receive threatening text messages from persons identifying themselves to be mafia members utilizing  Kelly Custer’s phone.

The individuals made the demanded payments primarily to Kelly Custer, but also directed payments William Custer, Jr., Ashley Custer, and Sidney Custer on numerous occasions as they were instructed to do in the threatening text messages.  The individuals reported that, in response to the threatening text messages, they had paid “the mafia” approximately 1.5 million over the past seven years, and approximately $250,000-$300,000 since moving to Florida.  They said that, in response to threats they usually paid between $3,000 and $10,000 at a time, but that on at least one occasion they paid $50,000 after receiving a threatening message indicating that if they did not pay that amount a friend’s daughter would be killed.  

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nathaniel C. Henson.

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.

WASHINGTON – A member of the Imperial Gangsters street gang was sentenced to 25 years in prison for murder and conspiracy to participate in racketeering activity, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.

Julian Guillermo Serna, aka Big Ju, 25, of Munster, Indiana, pleaded guilty to the charges on Dec. 27, 2013.  Chief U.S. District Court Judge Philip P. Simon of the Northern District of Indiana imposed the sentence.

According to evidence presented at the sentencing hearing, Serna shot and killed Mario Soriano, a member of a renegade clique of the 139th Street Imperial Gangsters, with whom he had engaged in shootouts previously.  Specifically, while riding in a car, Serna saw Soriano riding in another car.  When Soriano began to lower his window, Serna shot repeatedly into the car, killing Soriano.

Of the 24 Imperial Gangsters who were indicted in this case, 22 have pleaded guilty.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; and the East Chicago Police Department.  The Gary Police Department, the Hammond Police Department and the Lake County, Indiana, High Intensity Drug Trafficking Area Program provided assistance.  This case is being prosecuted by Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana.

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HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Shannon Meegan, 34, of Hammond, Indiana was sentenced to 2 years of probation by Judge James Moody after pleading guilty to the felony offense of conspiracy to distribute a controlled substance.

According to documents filed in this case, between 2006 and 2012, Meegan conspired with one of her coworkers at a medical facility in Munster, Indiana to illegally distribute over 200,000 hydrocodone pills.  The Drug Enforcement Administration estimates that the drugs distributed had a street value of over $1,000,000.

This case was the result of an investigation by the Drug Enforcement Administration’s (DEA) Chicago Strike Force and DEA’s Diversion Group.  This case was prosecuted by Assistant United States Attorney Thomas M. McGrath.

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WASHINGTON – A leader of the Imperial Gangsters street gang was sentenced today to life in prison for five counts of murder in aid of racketeering and other RICO-related charges, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.

Juan Briseno, aka Tito, 25, of Hammond, Indiana, was sentenced by Chief Judge Philip P. Simon of the Northern District of Indiana to a total of six life sentences plus 10 years in prison.  The life sentences will run consecutively.

On March 6, 2015, a federal jury in the Northern District of Indiana convicted Briseno of engaging in a RICO conspiracy, engaging in a drug distribution conspiracy, five counts of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and a firearms count related to the attempted murder.

According to the evidence presented at trial, Briseno was a leader of the 149th Street Imperial Gangsters, a violent clique of the Imperial Gangsters based in East Chicago, Indiana.  In his leadership role, Briseno supervised prospective gang members known as “shorties.”

The evidence showed that the Imperial Gangsters had a long-standing rule that gang members were to shoot rival gang members on sight, and that they had a policy to shoot anyone selling drugs in their neighborhood when such persons had not either purchased the drugs from the Imperial Gangsters or paid “taxes” to the gang for the right to sell drugs in their territory.  The five murders of which Briseno was convicted were committed consistent with these directives.

According to witness testimony, Briseno expressed no remorse for his participation in various murders.  Indeed, he bragged about killings and encouraged others to do the same.

With regard to the specific murders, the evidence at trial demonstrated that, on Sept. 26, 2007, Briseno knocked on Luis Ortiz’s apartment door in Hammond, Indiana, and shot him dead in the doorway.  According to the evidence presented at trial, Briseno targeted Ortiz because he was a member of the rival Latin King Street Gang.

Additionally, the evidence showed that, on June 3, 2008, Briseno killed both Miguel Mejias, a former member of the Latin Kings, and Michael Sessum, an associate of Mejias, while they were unarmed and bringing takeout food to their pregnant girlfriends.  According to the evidence presented at trial, Briseno fired multiple shots into Mejias’ residence, striking a female victim in the arm while she was holding her infant child.  Another pregnant female victim and multiple minor victims also were inside the apartment at the time.  According to testimony presented at trial, in the weeks prior to the confrontation, Mejias implored a common friend to tell Briseno that Mejias was no longer “gangbanging” and did not want any trouble.  In response to this message, Briseno said, “[expletive] him, he was going to bring [Latin] Kings into our neighborhood.”

The evidence at trial also demonstrated that, on Feb. 7, 2010, Briseno and his associates murdered rival Two-Six gang member Miguel Colonas he was leaving a party in the Harbor Area of East Chicago.  In this incident, Briseno and several associates laid in wait for Colon to leave the party, and then shot the unsuspecting Colon from a vehicle.

Finally, the evidence at trial demonstrated that, on June 19, 2010, Briseno murdered Latroy Howard because he was selling drugs in Imperial Gangster territory.  A video introduced at trial showed Briseno’s vehicle circling the block several times prior to the murder, and then showed Briseno confronting Howard on foot and shooting him twice in the head at point-blank range.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; and the East Chicago Police Department.  The Gary, Indiana, Police Department; the Hammond Police Department; and the Lake County High Intensity Drug Trafficking Area Program provided assistance.  This case is being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Scott Klingerman, 45, of South Bend, Indiana, was sentenced on June 10, 2015, for wire fraud.

Klingerman was sentenced to 20 months imprisonment and 2 years of supervised release.   He was also ordered to pay restitution of $26,654.62 to the Walkerton-Lincoln Township Public Library, and $6,238.68 to the State of Indiana.

According to documents in the case, Klingerman was Interim Director of the Walkerton-Lincoln Township Public Library, in Walkerton, Indiana, from 2010 through 2013.  In 2012, Klingerman used library funds to pay for personal expenses such as his health club membership, and for rooms at a hotel in Tennessee, all without authorization.

This case was the result of an investigation by the Federal Bureau of Investigation.  This case was prosecuted by Assistant United States Attorney Jesse M. Barrett.

 

 

 

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FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Christian D. Shelton, 38, of Fort Wayne, Indiana, was found guilty on June 4, 2015, by jury trial, of maintaining a drug-involved premises, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.

According to the evidence presented at trial, in November 2012, detectives with the Fort Wayne Police Department obtained a search warrant and in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed that warrant at Shelton’s home on Gaywood Drive, Fort Wayne, Indiana.  At Shelton’s home, officers located marijuana, two firearms, and other evidence of drug dealing.

Sentencing for Shelton will be scheduled at a later date by a separate court order. Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.

This case was the result of an investigation by the Fort Wayne Police Department  and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This trial was handled by Assistant United States Attorney Anthony W. Geller.

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SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Usbaldo Martinez, 34, of Logansport, Indiana, was sentenced today to 100 months imprisonment, for possessing stolen firearms.

According to documents in the case, between November of 2013 and February of 2014, Usbaldo Martinez was involved with selling cocaine powder and several firearms in the Logansport area. The Drug Enforcement Administration and local law enforcement agencies were involved with making several purchases of cocaine and firearms from Mr. Martinez. Mr. Martinez was indicted by a federal grand jury in the Northern District of Indiana and pled guilty to firearms violations.

This case was the result of an investigation by the United States Drug Enforcement Administration.  This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.

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Fort Wayne, Indiana - The United States Attorney's Office announced the return of an indictment charging Dillon Douglas Kingsbery, 31, of Huntertown, Indiana with one count of knowingly receiving child pornography along with one count of possession of child pornography.

According to documents filed in this case, on December 30, 2014 and on several other dates, a Detective with the Indiana State Police conducted an online investigation of a peer-to-peer file exchange program known as BitTorrent.  During the course of the investigation the detective was able to connect directly with the suspect’s computer and download files that are suspected as child pornography.  Following several different downloads of suspected child pornography, the detective was able to track the Internet Protocol (IP) address from which the suspected child pornography was downloaded to the as suspect address.  On April 14, 2015, the Indiana State Police executed a search warrant on the address, that was tied to Kingsbery, and found various electronic media devices to which they performed on-scene forensic triage locating in excess of 6000 images and/or videos of suspected child pornography.

This case is being investigated by the Federal Bureau of Investigation and the Indiana State Police with assistance with the Indiana State Police Cyber Crimes Unit also known as the Indiana Internet Crimes Against Children (ICAC) team. 

This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley Miller Lowery.

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.

SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Darius Williams, 31, of South Bend, Indiana, was sentenced today, for distribution of heroin.  Williams was sentenced to 12 years imprisonment and 6 years of supervised release.

According to documents in the case, in September of 2014, the United States Drug Enforcement Agency, the Elkhart County Prosecutor’s Office Interdiction and Covert Enforcement Unit (Elkhart ICE Unit), the South Bend Police Department Metro Special Operations Section (South Bend MSOS), the Indiana State Police and the U.S. Bureau of Alcohol Tobacco and Firearms initiated an investigation into heroin trafficking by several individuals operating in South Bend, Indiana.  Through the course of the investigation an individual named Darius Williams was identified as consistently dealing heroin during the years of 2013 and 2014.  During a search of Williams’ residence in South Bend, investigators found and seized a loaded firearm that was used during the course of heroin dealing.

This case was the result of an investigation by the United States Drug Enforcement Agency, the Elkhart County Prosecutor’s Office Interdiction and Covert Enforcement Unit (Elkhart ICE Unit), the South Bend Police Department Metro Special Operations Section (South Bend MSOS), the Indiana State Police and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case was prosecuted by Assistant United States Attorney Donald J. Schmid.

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HAMMOND-  United States Attorney David Capp announced today that a federal grand jury returned a 34 count superseding indictment charging Jack Weichman with nine counts of bank fraud, fourteen counts of bankruptcy fraud, two counts of money laundering, four counts of wire fraud, and five counts of filing false federal income tax returns.

According to the superseding indictment, Weichman, a CPA, owned and operated an accounting firm and a medical billing firm in Munster, Indiana that managed medical practices and provided payroll, billing, accounting and tax services for its physician clients.  Weichman is alleged to have illegally obtained over three million dollars from a local bank by obtaining money from his physician clients’ bank accounts, and obtaining lines of credit in the name of a client without the knowledge or permission of his clients. The proceeds from the lines of credit are alleged to have gone directly to Weichman who in turn used the money to, among other things, pay debts he owed to casinos.  Weichman is also charged with defrauding a second bank into renewing a $355,133.68 term loan by omitting critical information he was required to provide the bank regarding his assets and liabilities.  Specifically, it is alleged that Weichman failed to advise the bank that he owed the IRS approximately $2 million dollars in back taxes.

The superseding indictment also alleges that Weichman hid assets from his creditors and bankruptcy trustee during his Chapter 11 bankruptcy.  As outlined in the superseding indictment, Weichman is alleged to have hidden hundreds of thousands of dollars that he paid to area casinos as well as tens of thousands of dollars in credit card payments for the purchase of items such as cigars, luxury handbags, sports memorabilia, and cruises.  The bankruptcy charges identified in Counts 10 and 20 of the superseding indictment also trigger allegations of money laundering, alleging hundreds of thousands of dollars in criminally derived property.

A wire fraud scheme is also alleged in the superseding indictment.  As part of the wire fraud scheme, the superseding indictment alleges that Weichman and employees at his accounting firm caused the transmission of withdrawal requests on a client’s IRA accounts to be faxed to brokerage offices in San Diego, CA and St. Louis Mo., without the client’s knowledge or permission.  It is alleged in the superseding indictment that Weichman would direct his accounting firm employees to pretend to be the actual owner of the IRA accounts when contacting the brokerage firm.  The money obtained from this scheme is alleged to have been used by Weichman for his own benefit, including gambling.

Finally, the superseding indictment alleges that Weichman filed five false income tax returns from approximately August 2009 through October 15, 2013.

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

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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FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announces that today, Charles R. Seals, 25, of Fort Wayne, Indiana, was sentenced to a total of 228 months (19 years) of imprisonment along with a term of 2 years of supervised release following his plea of guilty to the felony offenses of armed bank robbery, brandishing a firearm during and in relation to a federal crime of violence, and assaulting and impeding a postal employee.

On December 5, 2013, Mr. Seals and his two codefendants committed the armed robbery of Wells Fargo Bank in Hoagland, Indiana.  Prior to entering the bank, Mr. Seals confronted a postal employee at gunpoint and forced them into the bank.  Mr. Seals and codefendant Calvin Miller then proceeded to conduct the armed robbery, with Mr. Seals threatening employees with a gun.  After taking money from the bank, the two escaped in a getaway vehicle being driven by the third codefendant, Brandon Sizemore.  Officers with the Fort Wayne Police Department, Allen County Police Department, and Indiana State Police were successful in apprehending all three suspects after a high speed pursuit.     

This investigation was conducted by the FBI’s Northeast Indiana Federal Bank Robbery Task Force (NEIFBRTF) and the United States Postal Inspection Service. The NEIFBRTF is comprised of FBI agents, and personnel from the Indiana State Police, Allen County Police Department, Fort Wayne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case was prosecuted by Assistant United States Attorney Anthony W. Geller.

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