Southern District of Indiana

INDIANAPOLIS - United States Attorney Josh J. Minkler announced that a federal grand jury has indicted Brian Fenner, 44, of Indianapolis, and Dennis Birkley, 59, of Wisconsin, with conspiracy to commit mail, wire, and bank fraud. The two men were arrested by the FBI and Indiana State Police. Birkley’s company, AMI Asset Management, was also charged in the indictment. 

“Those who choose to profit by peddling deception will be held accountable by this office,” said Minkler. “That is particularly true when that deception is targeted at vulnerable individuals.” 

The indictment alleged that Fenner and Birkley conspired to wash motor vehicle titles of bank liens and sell the vehicles for personal profit. According to the indictment, Fenner targeted financially distressed individuals who were upside down on their auto loans. He allegedly promised to pay their bankruptcy attorneys’ fees if they turned their vehicles over to him. The indictment alleges that between 2013 and 2016, numerous individuals from all around the United States signed on with Fenner and had their vehicles towed to and stored on Fenner’s lots in Indianapolis, in exchange for what they thought would be a “free” bankruptcy. 

What neither the individuals nor the banks knew, however, was that Fenner had allegedly agreed with his silent partner, Birkley, to exploit Indiana’s mechanic’s lien law to strip the vehicle titles of the banks’ liens, leaving the individuals with the debt but no collateral to return to the bank. 

According to the indictment, Fenner purported to charge the individuals exorbitant “towing” and “storage” fees for bringing their cars to his Indianapolis lots. The indictment alleges, however, that Fenner never intended to collect those fees. Rather, he used the fees to get a “mechanic’s lien” on the vehicle. 

A mechanic’s lien is a legal process that allows legitimate service providers, like an auto mechanic, to recoup reasonable fees for their services if a customer does not pay. Under Indiana law, if a customer does not pay the fees owed within a certain period of time, the service provider can sell the vehicle at a public auction to the highest bidder. The service provider recoups their legitimate fees and then passes on any excess money from the auction, first to any other lienholder, such as a bank, and then ultimately to the vehicle’s owner.

In Fenner’s case, however, there were no auctions. According to the indictment, Fenner and Birkley conspired in advance that Birkley and his company, AMI Asset Management, would “win” every auction. The amount Birkley would pay would be exactly equal to the amount of the sham fees that Fenner purported to charge. Therefore, there was no excess money to satisfy the bank’s lien or return to the individual. 

Instead, Birkley received vehicles with titles clear of liens from banks or anyone else.  Then, according to the indictment, Birkley sold the vehicles, sometimes at a real public auction, and often received thousands of dollars in profit, which he split with Fenner. 

In the end, the scheme allegedly left the financially distressed individuals with no vehicles but still with the vehicle loan debt, which they were often unable to discharge in bankruptcy. 

According to Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, Fenner and Birkley each face up to twenty years in prison.

This case is being jointly investigated by the Federal Bureau of Investigation and the Indiana State Police, with assistance from the Department of Justice’s U.S. Trustee Program.

      “The partnership between the Indiana State Police and the FBI allows joint investigations of this nature to occur and hold accountable those who seek to profit on the misery of other,” said state police Supt. Doug Carter. “This also serves as a reminder to potential victims of similar scams that offers that sound too good to be true usually have a nexus to a criminal act.”

“The charges announced today address a significant fraud scheme that caused harm to vulnerable debtors and strikes directly at the integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Indiana and Southern and Central Illinois (Region 10).  “This indictment reflects the cooperative efforts among several federal law enforcement agencies that work together to combat fraud and abuse in the bankruptcy system.”

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust and vulnerable victims. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1

INDIANAPOLIS – U.S. Attorney for the Southern District of Indiana Josh J. Minkler recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2018 Law Enforcement Officers Killed and Assaulted report.

 “Today marks the beginning of National Police Week, a time for citizens alike to take pause and commemorate the service and sacrifices the men and women in blue offer each and every day,” said Josh J. Minkler, United States Attorney.  “As a career federal prosecutor, I am honored to recognize the spirit and the work police officers engage in each day.  On behalf of the Justice Department, I thank not only the officers, but their families who walk beside them in service to our communities.  In tribute to them, we are proud to announce the launch of the USAO-SDIN’s Spotlight on the Blue Campaign.”

In recognition of our distinguished law enforcement officers we honor their service and sacrifice during National Police week observed May 12, 2019-May 19 2019.  This year, the USAO-SDIN honors the week and work with the launch of the USAO-SDIN’s Spotlight on the Blue Campaign.  Please join us in recognizing this important commemoration and the dedication of our devoted law enforcement officers.  The campaign will launch on Twitter @: SDINnews and Facebook at https://www.facebook.com/usaosdin/.  Follow us!

In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty.  The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.  

During Police Week, which is observed from Sunday, May 12 to Saturday, May 18, 2019, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.

The National Law Enforcement Officers Memorial in Washington, DC, during the 31th Annual Candlelight Vigil on the evening of May 13, 2019 held on the National Mall between 7th and 12th Streets in Washington, D.C.  According to statistics collected by the FBI, 106 law enforcement officers were killed in line-of-duty in 2018.  Of these, 55 law enforcement officers were feloniously killed and 51 were killed accidentally.

The D.C. vigil includes musical tributes, special remarks and reading of 371 names as they are dedicated on the National Law Enforcement Officers Memorial. Register for live webcast at www.nleomf.org/vigil*.  So that people across the country can experience this unique.

 For a complete schedule of National Police Week events in Washington, DC, visit www.LawMemorial.org/PoliceWeek.

For more information about other National Police Week events, please visit www.policeweek.org.

To access the FBI's 2018 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.

 

 * Unlinked URLs no longer exist

WASHINGTON – A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.

The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems.  The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3.  As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment.  They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.

“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski.  “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII.  The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”

“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler.  “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice.  I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”

“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham.  “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”

"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall.  "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."

The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data.  As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment. 

Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.

According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses.  These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses.  After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.

The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment.  This data included PII and confidential business information.  The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.

The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools.  The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China.  The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.

Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection.  In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.

Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity.  According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3. 

This case was investigated by the FBI’s Indianapolis Field Office.  Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case.  Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.

Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.

The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems.  The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3.  As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment.  They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.

“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski.  “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII.  The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”

“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler.  “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice.  I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”

“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham.  “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”

"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall.  "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."

The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data.  As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment. 

Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.

According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses.  These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses.  After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.

The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment.  This data included PII and confidential business information.  The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.

The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools.  The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China.  The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.

Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection.  In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.

Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity.  According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3. 

This case was investigated by the FBI’s Indianapolis Field Office.  Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case.  Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.

Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Indianapolis – United States Attorney Josh J. Minkler is pleased to announce that the Department of Justice (DOJ) has issued new guidance on how corporate compliance programs will be evaluated by DOJ. The Southern District of Indiana personally participated in the Department’s April 30, 2019 launch efforts in Washington, D.C.

The new DOJ guidance is intended to provide greater transparency into prosecution decisions and updates previous February 2017 guidance described when Department prosecutors conduct investigations of corporations. The Justice Manual considerations focus on “the adequacy and effectiveness of the corporation’s compliance program at the time of the offense, as well as at the time of a charging decision.” 

The Southern District of Indiana (SDIN) was one of twenty-two in the country represented at the recent Criminal Division rollout addressing this guidance. USA Minkler appointed First Assistant United States Attorney Cynthia J. Ridgeway to represent the district and engage with Fraud Section leaders and private sector compliance representatives. 

The Department’s guidance document, entitled “The Evaluation of Corporate Compliance Programs,” may be viewed at https://www.justice.gov/opa/pr/criminal-division-announces-publication-guidance-evaluating-corporate-compliance-programs. USA Minkler will be convening a private sector seminar in the coming months to discuss the three basic, overarching questions Department lawyers will contemplate:

1. Is the corporate compliance program well designed?
2. Is the program being applied earnestly and in good faith? 
3. Does the compliance program work in practice?

INDIANAPOLIS – United States Attorney Josh J. Minkler announced the sentencing of the leader of a drug trafficking organization which distributed large amounts of cocaine and methamphetamine in the Indianapolis area. Brayan Quinonez, 25, was sentenced to 210 months’ imprisonment by U.S. District Judge James R. Sweeney II.

“The stalwart efforts our Assistant U.S. Attorneys and federal agents demonstrate and the impact of their multijurisdictional and international investigations utilizing the Organized Crime Drug Enforcement Task Force (OCDETF) model cannot be understated,” said Minkler. “The remarkable illicit drug and firearm seizures in this case unequivocally make our district a safer place. I commend these efforts and express personal pride and gratitude for the regular sacrifices law enforcement and partner agencies make in the interests of justice.”

Beginning in early 2017, the Federal Bureau of Investigation and Internal Revenue Service investigated the drug trafficking activities of Brayan Quinonez and others; this investigation demonstrated that Quinonez and others were conspiring to distribute controlled substances, including cocaine and methamphetamine. Quinonez distributed multiple kilograms of these substances at a time to customers located in the Indianapolis area; Quinonez received these drugs from sources of supply located in Mexico. Quinonez and others then conspired to launder the proceeds of this vast drug trafficking activity in various ways, including through a series of wire transfers to various nominees in Mexico, who received the drug proceeds on behalf of the source of supply.

This investigation culminated with the execution of numerous federal search warrants at locations in Indianapolis, including Quinonez’s residence and a second location he utilized to further his drug trafficking. In the execution of the search warrants, agents seized over 70 pounds of methamphetamine, six pounds of cocaine, $50,000 in cash, and 17 firearms (four of which were seized from Quinonez’s residence, as pictured below).

 

This case was jointly investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, the Indianapolis Metropolitan Police Department, Drug Enforcement Administration, Indiana State Police, and the Brownsburg Police Department.

“Residents living in fear because of narcotics trafficking in their neighborhoods by violent individuals such as Mr. Quinonez will never be tolerated,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This illustrates how the combined resources of the FBI and our law enforcement partners can target criminal enterprises and disrupt the flow of illegal drugs into our communities."

“IRS CI special agents exposed Quinonez’s money laundering activities by expertly tracing drug proceeds through international financial systems,” said Brenda Viteri, Acting Special Agent in Charge of IRS Criminal Investigation. “First, today’s sentencing reinforces the continued success of OCDETF partnerships that IRS CI is proud to support. Second, a word of warning – if you launder illegal money, we will find you; it’s only a matter of time.”

According to Assistant United States Attorney Michelle Brady, who is prosecuting this case for the government, Quinonez must serve five years of supervised release following his prison sentence.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in organized drug and violent crime. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.1

Indianapolis - United States Attorney Josh J. Minkler is pleased to announce this year’s Women’s Leadership Initiative (WLI) Steering Committee members:  Assistant United States Attorneys Cindy Cho, Kate Olivier, Kelly Rota, Gina Shields, U.S. District Court Law Clerk Sarah Dame, and FBI Special Agent Victoria Madtson.  The WLI concept was conceived and implemented in 2016 by a Steering Committee that consisted of First Assistant U.S. Attorney Cynthia Ridgeway, Civil Chief Shelese Woods, Assistant U.S. Attorneys MaryAnn Mindrum and Michelle Brady, and Financial Litigation Unit Supervisor Tracy Jones, as a way to encourage and foster professional development, leadership acumen, and camaraderie. 

Programs to-date have included presentations by Judges of the United States District and Bankruptcy Court, including the Honorable Sarah Evans Barker, the Honorable Tanya Walton Pratt, the Honorable Jane E. Magnus Stinson, Chief District Judge, Chief Bankruptcy Judge Robyn Moberly, Congresswoman Susan W. Brooks, Deborah Daniels of Krieg DeVault LLP (#Metoo), Anderson University President John Pistole (leadership and courage), John Trimble of Lewis Wagner LLP (unconscious bias), and Judy Shepard the mother of Matthew Shepard (diversity & inclusion), among others.

“Words of Advice for My Younger Self,” a Women’s Leadership Initiative event, will take place on Wednesday, May 8, 2019 at 12:00 p.m., at the United States Attorney’s Office located at 10 West Market Street, 20th Floor, Indianapolis, Indiana.  The panel will be moderated by WLI Steering Committee members and will feature Michelle Brady, Assistant United States Attorney, Laura A. Briggs, Clerk of Court, United States District Court, Southern District of Indiana, Joe Cleary, Indiana Federal Community Defenders, and Kenneth Riggins of The Law Office of Kenneth Riggins.

“These public servants are charged with a daunting and critical task – to serve their community selflessly and completely, putting aside personal endeavors to pursue justice,” said Josh J. Minkler, U.S. Attorney.  “We are pleased to support this continued partnership with and on behalf of our federal family in order to arm these civic-minded servant soldiers with the tools they need to nimbly strike the right balance on behalf of our community.”

INDIANAPOLIS –United States Attorney Josh J. Minkler announced that a Complaint was filed naming two defendants in drug trafficking offenses. Christopher Deeren was charged with drug possession with intent to distribute and/or distribute methamphetamine. Arthur Miles was charged with drug possession with intent to distribute and/or distribution of MDMA (ecstasy), methamphetamine and cocaine.

“In the wake of the opioid epidemic, our federal prosecutors and investigators continue to fight street battles involving the large scale distribution of addictive illicit drugs such as methamphetamine, cocaine, and in this case ecstasy or MDMA,” said Minkler. “We implore parents and the community at large to give careful consideration to the devastation and havoc these street drugs are having on our society and to partner with law enforcement through anonymous tips whenever possible.”

In 2019, federal investigators learned information about Deeren and initiated an investigation, followed by the execution of a federal search warrant at Dereen’s residence. Deeren and Miles were located at the residence and were arrested for operating a drug trafficking organization in the Brightwood neighborhood on the north side of Indianapolis, Indiana. Agents seized approximately 300.2 grams of methamphetamine, 320.4 grams of cocaine, 15,000 MDMA pills and two rifles.

 

 

“DEA working in concert with the Indianapolis Metropolitan Police Department and United States Attorney's Office will continue to identify subjects involved in selling/distributing illegal drugs including MDMA, methamphetamine, cocaine and other illicit drugs,” said DEA Assistant Special Agent in Charge Michael Gannon. “The residents of Indianapolis should be cautioned that drug dealers deal poison and prey on the weak, and cause enormous harm to our communities. Indianapolis drug dealers are put on notice. We will arrest you and ensure you are brought to justice, swiftly.” 

“The distribution of illicit drugs causes violence that impacts our lives, families and communities,” said IMPD Chief Bryan Roach. “Collaborative and explicit investigative/enforcement of those who profit on the distribution and sale of illegal and highly addictive drugs will continue to be a focus of the collective law enforcement communities. Equally as important is ensuring law enforcement continues to collaborate with community-based social services to aid those struggling with addiction and substance abuse challenges.”

This case was jointly investigated by the Drug Enforcement Administration and the Indianapolis Metropolitan Police Department.

According to Assistant United States Attorney Pamela Domash, who is prosecuting this case for the government, Deeren and Miles each face up to 40 years’ imprisonment if convicted.

A Complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime involving drugs and firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.2

Celadon Group Inc. (Celadon) has agreed to pay total restitution of $42.2 million for filing materially false and misleading statements to investors and falsifying books, records and accounts.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler of the Southern District of Indiana, Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) made the announcement.

Celadon, a transportation company headquartered in Indianapolis, Indiana, that was listed on the New York Stock Exchange (NYSE), entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of Indiana charging the company with securities fraud.  The case was primarily focused on the fact that Celadon knowingly filed materially false and misleading statements to investors and falsified books, records and accounts with regard to the values of assets involved in four trade transactions that were recorded at inflated values and not fair market value.

“Celadon executives misled the investing public for a simple reason: profit,” said Assistant Attorney General Benczkowski.  “Securities fraud harms all investors — from the most sophisticated to those everyday Americans saving for retirement, and the Criminal Division remains committed to investigating and prosecuting these complex crimes.”

“The fabric of American industry is woven together through innovation, work ethic and integrity,” said U.S. Attorney Josh J. Minkler.  “The government is charged with ferreting out misdeeds in corporate America, particularly when these violations of public trust result in financial harm to our citizens as is set forth in this matter.  I would like to personally thank and recognize the Justice Department’s Fraud Section, SEC, FBI and USPIS partners whose collaborative work unearthed this criminal activity.”

“The message here is clear, those who commit financial fraud will be held accountable. Investors should expect nothing less than complete candor and truth from companies and their executives,” said Special Agent in Charge Grant Mendenhall.  “The FBI and our agency partners will continue to identify, investigate and pursue violations such as this.”

“The Postal Inspection Service has been protecting investors and defending the integrity of the marketplace for many years,” said Inspector in Charge Delany DeLeon-Colon.  “Anyone who engages in these deceptive securities practices should know they will not go undetected and they will be held accountable.”

According to court documents filed as part of the DPA, Celadon provided trucking and transportation services in the United States, Mexico and Canada.  Quality Companies LLC (Quality) was a wholly owned subsidiary of Celadon that leased tractors and trailers to owner-operator truck drivers.  Between 2013 and 2016, Quality’s inventory grew rapidly, from approximately 750 tractors and trucks to more than 11,000.  

Quality’s financial performance began to struggle in 2016 due in part to a slowdown in the trucking market.  In addition, Quality owned a significant number of a truck models with mechanical issues, which many drivers did not want to lease.  By 2016, many of Quality’s trucks were idle, unleased and overvalued on Quality’s books by tens of millions of dollars. 

Instead of properly reporting Quality’s financial difficulties to investors, members of Celadon’s and Quality’s senior management team, all acting within the scope of their employment, participated in a scheme that resulted in Celadon falsely reporting inflated profits and inflated assets to the investing public through Celadon’s financial statements.  Between approximately June 2016 and October 2016, Quality engaged in a series of trades as a means to dispose of its aging and unused trucks.  In order to avoid disclosing the losses connected to these trucks, executives executed the trades using invoices purposely inflated well above market value.  Celadon ultimately used these invoices and inflated truck values to hide millions of dollars of losses from investors.    

In December 2016, after allegations of misconduct had arisen publicly, Celadon’s management approved a memorandum that falsely stated the trucks involved in the above-described transactions were purchased and sold at fair market value, and were accounted for properly on Celadon’s books.  Further, beginning in approximately January 2017, Celadon’s independent auditors conducted an investigation into the allegations of misconduct.  In response, multiple members of Celadon’s and Quality’s management falsely represented to independent auditors that the transactions were done at fair market value and that they were not trades.  Celadon’s auditor ultimately withdrew its audit opinion for certain Celadon financial statements.  The resulting disclosure by Celadon of the auditor’s withdrawal caused a significant drop in the price of Celadon’s stock, which resulted in investors losing tens of millions of dollars. 

Under the terms of the DPA, Celadon is required to pay full restitution of $42.2 million to shareholder victims directly and proximately harmed as a result of the commission of the offense, which will be paid over a period of years consistent with 18 U.S.C. § 3664(f)(2), (3)(A).  Celadon also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals.  Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of approximately five years, subject to approval by the court, to allow Celadon to demonstrate good conduct.

The Department reached this resolution based on a number of factors, including Celadon’s ongoing cooperation with the United States and the company’s extensive efforts at remediation.  Among other remedial efforts, the company no longer employs the executives involved in wrongdoing, and the company replaced its executive management team with experienced executives who display a commitment to building an ethical corporate culture.  Furthermore, Celadon created the new position of Chief Accounting Officer and hired an experienced Internal Audit staff member reporting directly to the Company’s Internal Audit Manager.

In addition, the United States filed an Information and plea agreement against Danny Williams, the former President of Quality, who was charged with one count of conspiracy to commit securities fraud, to make false statements to a public company’s accountants, and to falsify books, records and accounts of a public company in connection with Celadon’s crimes.

Trial Attorneys Kyle W. Maurer and  L. Rush Atkinson of the Criminal Division’s Fraud Section, Deputy Chief Steven D. DeBrota and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana prosecuted the case with assistance from the FBI’s Indianapolis Field Office and the USPIS.

This investigation is ongoing.

If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/celadon or call (888) 549-3945. 

 

     Celadon Group, Inc. (Celadon) has agreed to pay total restitution of $42.2 million for filing materially false and misleading statements to investors and falsifying books, records and accounts.

     Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler of the Southern District of Indiana, Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) made the announcement.

     Celadon, a transportation company headquartered in Indianapolis, Indiana, that was listed on the New York Stock Exchange (NYSE), entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of Indiana charging the company with securities fraud.  The case was primarily focused on the fact that Celadon knowingly filed materially false and misleading statements to investors and falsified books, records and accounts with regard to the values of assets involved in four trade transactions that were recorded at inflated values and not fair market value.

     “Celadon executives misled the investing public for a simple reason: profit,” said Assistant Attorney General Benczkowski.  “Securities fraud harms all investors — from the most sophisticated to those everyday Americans saving for retirement, and the Criminal Division remains committed to investigating and prosecuting these complex crimes.”

     “The fabric of American industry is woven together through innovation, work ethic and integrity,” said U.S. Attorney Josh J. Minkler.  “The government is charged with ferreting out misdeeds in corporate America, particularly when these violations of public trust result in financial harm to our citizens as is set forth in this matter.  I would like to personally thank and recognize the Justice Department’s Fraud Section, SEC, FBI and USPIS partners whose collaborative work unearthed this criminal activity.”

     “The message here is clear, those who commit financial fraud will be held accountable. Investors should expect nothing less than complete candor and truth from companies and their executives,” said Special Agent in Charge Grant Mendenhall.  “The FBI and our agency partners will continue to identify, investigate and pursue violations such as this.”

     “The Postal Inspection Service has been protecting investors and defending the integrity of the marketplace for many years,” said Inspector in Charge Delany DeLeon-Colon.  “Anyone who engages in these deceptive securities practices should know they will not go undetected and they will be held accountable.”

     According to court documents filed as part of the DPA, Celadon provided trucking and transportation services in the United States, Mexico and Canada.  Quality Companies, LLC (Quality) was a wholly owned subsidiary of Celadon that leased tractors and trailers to owner-operator truck drivers.  Between 2013 and 2016, Quality’s inventory grew rapidly, from approximately 750 tractors and trucks to more than 11,000. 

     Quality’s financial performance began to struggle in 2016 due in part to a slowdown in the trucking market.  In addition, Quality owned a significant number of a truck models with mechanical issues, which many drivers did not want to lease.  By 2016, many of Quality’s trucks were idle, unleased and overvalued on Quality’s books by tens of millions of dollars. 

     Instead of properly reporting Quality’s financial difficulties to investors, members of Celadon’s and Quality’s senior management team, all acting within the scope of their employment, participated in a scheme that resulted in Celadon falsely reporting inflated profits and inflated assets to the investing public through Celadon’s financial statements.  Between approximately June 2016 and October 2016, Quality engaged in a series of trades as a means to dispose of its aging and unused trucks.  In order to avoid disclosing the losses connected to these trucks, executives executed the trades using invoices purposely inflated well above market value.  Celadon ultimately used these invoices and inflated truck values to hide millions of dollars of losses from investors.    

     In December 2016, after allegations of misconduct had arisen publicly, Celadon’s management approved a memorandum that falsely stated the trucks involved in the above-described transactions were purchased and sold at fair market value, and were accounted for properly on Celadon’s books.  Further, beginning in approximately January 2017, Celadon’s independent auditors conducted an investigation into the allegations of misconduct.  In response, multiple members of Celadon’s and Quality’s management falsely represented to independent auditors that the transactions were done at fair market value and that they were not trades.  Celadon’s auditor ultimately withdrew its audit opinion for certain Celadon financial statements.  The resulting disclosure by Celadon of the auditor’s withdrawal caused a significant drop in the price of Celadon’s stock, which resulted in investors losing tens of millions of dollars. 

     Under the terms of the DPA, Celadon is required to pay full restitution of $42.2 million to shareholder victims directly and proximately harmed as a result of the commission of the offense. Celadon also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals.  Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of approximately five years, subject to approval by the court, to allow Celadon to demonstrate good conduct.

     The Department reached this resolution based on a number of factors, including Celadon’s ongoing cooperation with the United States and the company’s extensive efforts at remediation.  Among other remedial efforts, the company no longer employs the executives involved in wrongdoing, and the company replaced its executive management team with experienced executives who display a commitment to building an ethical corporate culture.  Furthermore, Celadon created the new position of Chief Accounting Officer and hired an experienced Internal Audit staff member reporting directly to the Company’s Internal Audit Manager.

     In addition, the United States filed an Information and plea agreement against Danny Williams, the former President of Quality, who was charged with one count of conspiracy to commit securities fraud, to make false statements to a public company’s accountants, and to falsify books, records and accounts of a public company in connection with Celadon’s crimes.

     Trial Attorneys Kyle W. Maurer and L. Rush Atkinson of the Criminal Division’s Fraud Section, Deputy Chief Steven D. DeBrota and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana prosecuted the case with assistance from the FBI’s Indianapolis Field Office and the USPIS.

     This investigation is ongoing.

     If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/celadon or call (888) 549-3945. 

    ###

     Indianapolis – Josh J. Minkler, the United States Attorney, is pleased to announce that Project Safe Neighborhoods (PSN) federal grant dollars are available for State and local government agencies to partner with federal law enforcement on targeted and prioritized violent-crime reduction programs, which include community engagement, prevention and reentry efforts. PSN grants monies may be used for criminal justice-related initiatives, technical assistance, training, personnel, equipment, supplies, contracted support, information systems, research and evaluation.

     Applicants are encouraged to propose evidence-based, effective, promising or best practices cited in an academic, journal, a recognized list of evaluated programs or causal evidence from an outcome evaluation. Applications must enhance or expand, not replace, existing funds.

     “The Justice Department is pleased to offer opportunities for community members to partner with state and local government agencies in an effort to reduce the gun-related violence that currently plagues our communities,” said United States Attorney Josh Minkler. “We would like to recognize and thank our PSN Task Force partners, ICJI, the Indianapolis Metropolitan Police Department, the Marion County Prosecutor’s Office, the Indiana Department of Education, the Indianapolis Marion County Forensic Services Agency, and community volunteer Gloria Riggs, for their persistence tackling these challenges over time and their innovative efforts to drive down the violence.”

     Project Safe Neighborhoods is the Justice Department’s flagship Violence Reduction initiative and was reinvigorated in 2018. In the Southern District of Indiana, United States Attorney Minkler appointed Kendra Klump, Assistant U.S. Attorney, to lead the PSN Task Force efforts in coordination with Marshall Depew of IMPD.    

     This funding opportunity runs from October 2019 through September 2020.  Applications may be submitted through May 24, 2019 using the IntellGrants system at http://intelligrants.IN.gov. For assistance with submitting an application, contact CJIHelpDesk@cji.in.gov, Terrie Grantham at TGrantham@cji.in.gov or Leann Jaggers at LeJaggers@cji.in.gov

###

     Indianapolis – Josh J. Minkler, the United States Attorney, announced today that the independent federal review into the fatal shooting of Indianapolis resident Aaron Bailey on June 29, 2017, found insufficient evidence to support federal criminal civil rights charges against the Indianapolis Metropolitan Police Department officers involved in the shooting.

     Federal authorities conducted a comprehensive and independent review of all evidence gathered during multiple investigations and proceedings relating to the shooting.  These materials included, among other things, the Indianapolis Metropolitan Police Department homicide investigation, the investigation and report of the appointed state special prosecutor, the proceedings before the Indianapolis Civilian Police Merit Board, and the independent investigation of the Federal Bureau of Investigation.

     Based on this review, career federal prosecutors determined that there is insufficient evidence to prove any violation of the applicable federal criminal civil rights statute, 18 U.S.C. § 242.  Under this statute, the government would have to prove beyond a reasonable doubt that one or both of the officers involved in the shooting deprived Mr. Bailey of a constitutionally protected right, and that the officer did so willfully.  To prove the constitutional violation, the government would have to show that the officer used force that was objectively unreasonable based on all of the surrounding circumstances.  Moreover, the law requires that this determination allow for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving, and also requires that an officer’s force be judged without the benefit and added perspective of hindsight.

     To prove that an officer-involved shooting violated 18 U.S.C. § 242, the government also would have to prove beyond a reasonable doubt that the officer acted willfully, meaning that the officer knew that his actions were unlawful and he acted with the specific intent to do something the law forbids.  Even negligence, mistake, and bad judgment are insufficient to establish a criminal violation. 

     Based on a determination that the evidence in this case is insufficient to meet the high legal standard set by the law, the United States Attorney’s Office, in consultation with the Civil Rights Division of the Department of Justice, has closed this matter without prosecution. 

     The United States Attorney’s Office for the Southern District of Indiana, the Civil Rights Division, and the Federal Bureau of Investigation are committed to investigating allegations of excessive force by law enforcement officers, and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined.  The Department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so and justice requires.                                                                                                                                                  

###

 

WASHINGTON – A jury yesterday convicted Paul J. Elmer, the former CEO and owner of Pharmakon Pharmaceuticals Inc. (Pharmakon), of conspiracy to defraud the Food and Drug Administration (FDA) and nine counts of adulterating drugs, the Department of Justice announced today. Pharmakon was a Noblesville, Indiana, drug compounding facility.

     The verdict came after an eight-day trial before U.S. District Judge James R. Sweeney II in Indianapolis, Indiana.

     Elmer, 67, formerly a licensed pharmacist and a resident of Fishers, Indiana, was charged by grand jury in a superseding indictment on Feb. 7, 2019. The superseding indictment charged that, from 2013 to 2016, Elmer and Caprice R. Bearden, Pharmakon’s former director of compliance, caused Pharmakon ─ which compounded sterile, intravenous drugs ─ to distribute approximately 70 lots of over- and under-potent drugs to military and civilian hospitals throughout the country.

     “As these convictions show, the Department of Justice takes very seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of products. With its law enforcement partners, the Department of Justice will thoroughly investigate and prosecute those who knowingly prevent the FDA from protecting patients and ensuring compounded drugs are safe.”

     “The jury’s findings in this case resonate with citizens of every age,” said Josh J. Minkler, United States Attorney. “Specifically, hospitals and patients from every walk of life rely on the integrity of pharmaceutical manufacturers like Pharmakon to make safe drugs. This defendant prioritized profit over safety and the jury’s verdict demonstrates the government’s resolve to protect our citizens. Good pharmaceutical manufacturers who work with the FDA achieve that goal.”

     “Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients—including young children—and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”

     “When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”

     Bearden pleaded guilty to all the charges in the original indictment on Nov. 21, 2017.  Her sentencing date has not been scheduled.

     Evidence at Elmer’s trial showed that, from 2013 to 2016, Pharmakon routinely shipped compounded drugs at Elmer’s direction to customers without having received laboratory test results that verified the drugs were the strength they were supposed to be. Furthermore, evidence showed that, despite receiving test results showing potency failures, Elmer did not recall the drugs, notify the customer, notify the FDA of the potency failures, or conduct any root cause investigation to determine the cause of the failure. 

     FDA consumer safety officers testified about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital.  They observed numerous violations of FDA regulations during each inspection, and informed Elmer. But former Pharmakon employees testified that Elmer and Bearden misled and interfered with these first two FDA inspections, in order to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact, never happened.

     According to evidence at trial, in February 2016, the multiple potency failures culminated in Pharmakon’s distribution of 2,460 percent super potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit.  Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.

     Elmer was convicted of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, carrying a maximum punishment of five years in prison and a fine of up to $250,000. He was also convicted of three misdemeanor counts of introducing adulterated drugs into interstate commerce and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Each of the adulteration counts is punishable by up to one year in prison and a fine of $100,000.

     Elmer’s sentencing date has not been scheduled.

     Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Department’s Consumer Protection Branch and, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.

     For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.

 

 

 

A jury yesterday convicted Paul J. Elmer, the former CEO and owner of Pharmakon Pharmaceuticals Inc. (Pharmakon), of conspiracy to defraud the Food and Drug Administration (FDA) and nine counts of adulterating drugs, the Department of Justice announced today. Pharmakon was a Noblesville, Indiana, drug compounding facility.

The verdict came after an eight-day trial before U.S. District Judge James R. Sweeney II in Indianapolis, Indiana.

Elmer, 67, formerly a licensed pharmacist and a resident of Fishers, Indiana, was charged by grand jury in a superseding indictment on Feb. 7, 2019. The superseding indictment charged that, from 2013 to 2016, Elmer and Caprice R. Bearden, Pharmakon’s former director of compliance, caused Pharmakon ─ which compounded sterile, intravenous drugs ─ to distribute approximately 70 lots of over- and under-potent drugs to military and civilian hospitals throughout the country.

“As these convictions show, the Department of Justice takes very seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of products. With its law enforcement partners, the Department of Justice will thoroughly investigate and prosecute those who knowingly prevent the FDA from protecting patients and ensuring compounded drugs are safe.”

“The jury’s findings in this case resonate with citizens of every age,” said Josh J. Minkler, United States Attorney. “Specifically, hospitals and patients from every walk of life rely on the integrity of pharmaceutical manufacturers like Pharmakon to make safe drugs. This defendant prioritized profit over safety and the jury’s verdict demonstrates the government’s resolve to protect our citizens. Good pharmaceutical manufacturers, who work with the FDA achieve that goal.”

“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients—including young children—and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”

“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”

Bearden pleaded guilty to all the charges in the original indictment on Nov. 21, 2017.  Her sentencing date has not been scheduled.

Evidence at Elmer’s trial showed that, from 2013 to 2016, Pharmakon routinely shipped compounded drugs at Elmer’s direction to customers without having received laboratory test results that verified the drugs were the strength they were supposed to be. Furthermore, evidence showed that, despite receiving test results showing potency failures, Elmer did not recall the drugs, notify the customer, notify the FDA of the potency failures, or conduct any root cause investigation to determine the cause of the failure. 

FDA consumer safety officers testified about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital.  They observed numerous violations of FDA regulations during each inspection, and informed Elmer. But former Pharmakon employees testified that Elmer and Bearden misled and interfered with these first two FDA inspections, in order to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact, never happened.

According to evidence at trial, in February 2016, the multiple potency failures culminated in Pharmakon’s distribution of 2,460 percent super potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit.  Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.

Elmer was convicted of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, carrying a maximum punishment of five years in prison and a fine of up to $250,000. He was also convicted of three misdemeanor counts of introducing adulterated drugs into interstate commerce and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Each of the adulteration counts is punishable by up to one year in prison and a fine of $100,000.

Elmer’s sentencing date has not been scheduled.

Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Department’s Consumer Protection Branch and, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.

For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.

The U.S. Attorney’s Office reminds all Hoosiers that the deadline for filing federal income tax returns is Monday, April 15, 2019. Although the filing season is nearing the end, the U.S. Attorney’s Office and the Internal Revenue Service’s Criminal Investigation Division work year round to protect the integrity of our nation’s tax system by investigating and prosecuting individuals who violate the tax laws.

“All citizens are charged with filing honest and accurate tax returns. Those who break the law by committing tax fraud or assist in the filing of dishonest returns on behalf of others are subject to federal prosecution, which may include federal prison sentences,” said Minkler.

“Taxpayers thinking about participating in fraudulent tax schemes, such as failing to report all forms of income or falsifying deductions should take a good look at the serious and detrimental consequences of taking the next step,” stated Special Agent in Charge Gabe Grchan of the IRS Criminal Investigation Division. “Those who might consider preparing false and fraudulent tax returns should be aware of the extremely negative consequences that could result in prison time, large tax bills, including substantial fines, interest and penalties.”

As the tax filing season winds down next week, the following court actions serve as a reminder to taxpayers, to think before filing a false or fraudulent tax return and to be wary of any schemes that falsify your income or deductions.

NORMAN FLICK, of Indianapolis, and GEORGE RUTH have been indicted for conspiracy to defraud the IRS by submitting false claims related to federal tax refunds. The indictment alleges that FLICK and RUTH submitted federal tax returns to the IRS in attempts to obtain $3.7 of fraudulent tax refunds. FLICK and RUTH face up to 10 years’ imprisonment. 

JOHN L. WILLIAMS recently pleaded guilty to multiple charges including tax evasion. WILLIAMS concealed $5.6 million of income from the IRS and willfully evaded the payment of $1.9 million in federal income taxes. WILLIAMS is awaiting sentencing.

STANLEY ESTIMPHILE was convicted and sentenced to 24 months’ imprisonment for assisting in making false tax returns. ESTIMPHILE included false Schedules C and false American Opportunity Credit claims on his clients’ federal tax returns without their knowledge in Washington, Indiana. ESTIMPHILE was ordered to pay $250,000 in restitution to the IRS. 

TAIWO ONUMUTI was convicted and sentenced to 204 months’ imprisonment and ordered to pay over $4.8 million in restitution for his involvement in making false federal tax refund claims against the IRS using stolen taxpayer identities. 

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.

New Albany – United States Attorney Josh J. Minkler announced today that a Madison, Indiana man was sentenced March 22, 2019, following his guilty plea to two counts of possession of unregistered destructive devices and one count of being a felon in possession of a firearm. David Theiring, 40, was sentenced to 87 months’ imprisonment by U.S. District Court Judge Tanya Walton Pratt.

“As citizens of this state and this country, we will not tolerate terrorism foreign or domestic of any kind. Those individuals who choose to threaten innocent lives will face the consequences of their actions,” said Minkler.

On Sunday, March 6, 2016, at approximately 1:00 a.m., an improvised explosive device in the form of a pipe bomb was detonated outside the Madison, Indiana Police Department.  The event occurred on the sidewalk on the east side of Central Avenue, beside the parking area for the police department. Evidence consisted of pieces of an unknown length of a ¾” white PVC pipe, two end caps, and gray duct tape. No one was injured and no property was damaged, though the bomb was detonated close to police vehicles.

On Wednesday, March 16, 2016, at approximately 2:50 a.m., an improvised explosive device in the form of a pipe bomb was detonated outside the residence of a Jefferson County Indiana Judge in Madison, Indiana. No one was injured and no damage was observed.

David Theiring was identified as a suspect. Law enforcement officers executed a search warrant on Theiring’s residence and he was found to be in possession of two firearms as well as numerous items utilized to manufacture a destructive device.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville, Kentucky, Indiana State Police, Madison City Police Department, Jefferson County Sheriff’s Office and Jefferson County Prosecutor’s Office.

“ATF strives to be ‘no better partner’ to law enforcement agencies, especially when investigating the criminal use of explosives and bombings,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “The sharing of resources and collaborative efforts with the Jefferson County Indiana Sheriff’s Department and Madison Indiana Police brought about the swift arrest and incarceration of a dangerous felon. This sentence reflects ATF’s ongoing commitment to reduce violent crime in our communities.”

According to Assistant United States Attorney Lauren M. Wheatley, who is prosecuting the case for the government, Theiring must be serve 3 years of supervised release following her sentence.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting individuals engaged in domestic terrorism and violent crime using firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 1.2 and 2.3 

INDIANAPOLIS- United States Attorney Josh J. Minker announced that Jaylen Brancheau and Donaven Meadows have been charged in federal court in separate criminal complaints.  Brancheau has been charged with possession with intent to distribute a controlled substance, possession of a firearm during and in relation to a drug trafficking offense, and providing a false statement during the purchase of a firearm.  Meadows has been charged with possession of ammunition by a prohibited person and possession of a firearm by a prohibited person.

“In bringing charges against these individuals, we send a strong message that illegal gun possession will not be tolerated and individuals that break the law will receive the strongest sentencing possible,” said Minkler. “CGIC connects the dots between crime guns and trigger pullers. The facts alleged in these two cases demonstrate exactly what CGIC was created to do.”

These arrests were made possible by the joint efforts of the Crime Gun Intelligence Unit (CGIC), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Indianapolis Metropolitan Police Department (IMPD), and the Greenwood Police Department (GPD).

CGIC is an interagency collaboration focused on the immediate collection, management, and analysis of crime gun evidence, such as shell casings, in real time, in an effort to identify shooters, disrupt criminal activity, and prevent future violence. The primary outcome of CGIC is identifying armed violent offenders for investigation and prosecution.  

A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

These cases are being prosecuted by Assistant United States Attorney Jeffrey D. Preston. Brancheau, if convicted, faces possible life imprisonment, and Meadows faces up to 20 years in prison. 

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime using firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3. 

A former Indiana attorney, who also prepared tax returns for Indianapolis-area clients, pleaded guilty yesterday to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Josh J. Minkler, U.S. Attorney for the Southern District of Indiana.

Scott C. Cole, 54, of Brownsburg, Indiana, pleaded guilty to one count of tax evasion for his multi-year effort to evade the payment of taxes and penalties on income he failed to report on his 2002 tax return.

According to the Superseding Indictment and court filings, Cole was an attorney and preparer of tax returns. As the result of Internal Revenue Service (IRS) audits of Cole’s 2001 and 2002 tax returns, the Tax Court and the United States Court of Appeals for the Seventh Circuit determined that Cole owed over $1,000,000 in taxes and penalties, stemming from Cole’s fraudulent omission of over $1.5 million of income from his individual tax returns for those years.  From 2011 through 2017, when the IRS sought to collect those taxes, Cole took various steps to evade payment of his tax debt. His efforts included opening bank accounts in the names of nominees, such as family members, directing payment for legal and tax preparation services performed by him be made payable to nominee companies he controlled, paying personal bills from bank accounts maintained in the names of nominees, and dealing extensively in cash and money orders. Cole also prepared tax returns for clients that omitted his name as the paid preparer of those tax returns, a violation of the Internal Revenue Code and related regulations.  Because of Cole’s acts of evasion, the IRS collected less than $3,000 of the total tax debt Cole owed for the 2001 and 2002 tax years.

Cole resigned from the Indiana bar following the filing of a complaint by the Supreme Court of Indiana Disciplinary Commission in 2014, which charged Cole with the filing of fraudulent tax returns with the IRS and the State of Indiana for the 2001 and 2002 tax years.

U.S. District Judge Jane Magnus-Stinson, who presided over Cole’s guilty plea yesterday, is expected to schedule Cole’s sentencing for late summer 2019.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Minkler commended special agents of IRS-Criminal Investigation, who investigated the case, the IRS Revenue Agents, who conducted the underlying audits, and the prosecutors on the case, Assistant United States Attorney James M. Warden from the Southern District of Indiana, and Assistant Chief Stanley J. Okula, Jr. of the Tax Division.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.

         New Albany – Josh J. Minkler, the United States Attorney, announced today that Ramon Sera-Mastrapa, 40, a Cuban national living in Florida, has been sentenced to 40 months’ imprisonment in connection with his role in a massive, years-long cargo theft conspiracy that spanned more than half of the continental United States. 

         The sentence, handed down by U.S. District Court Judge Tanya Walton Pratt at a hearing in New Albany, Indiana, Friday morning, represents the culmination of a years-long investigation led by the United States Attorney’s Office and agents of the FBI’s New Albany office, in close partnership with the Kentucky State Police Vehicle Investigations Unit. This massive investigative effort also yielded convictions and significant federal prison sentences for 12 other defendants: Carlos Enrique Freire-Pifferrer, Juan Perez-Gonzalez, Eduardo Hernandez, Mario Hernandez-Oquendo, Yoel Palenzuela-Mendez, Orlis Machado Cantillo, Miguel Mompie, Ritzy Robert-Montaner, Roberto Santos-Gonzalez, Carlos Mendez-Rosa, Raico Benitez Castillo, and Daniel Gonzalez-Insua.

          During the many court proceedings held in this case, the Court heard voluminous testimony about the sophistication of this theft ring. Specifically, the court heard that the defendants would travel from various locations throughout the United States to Virginia, Illinois, Indiana, Kentucky, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, and other U.S. States to reconnoiter distribution facilities used by various companies to distribute high-value cell phones, electronics, computer equipment, name brand clothing, cosmetics, pharmaceuticals, cigarettes, and liquor, among other products. Once the defendants identified a truck leaving a distribution facility, they would follow the truck for hundreds of miles until the driver of the cargo load would stop to rest or refuel. At that point, the defendants would steal the entire semi-tractor and trailer. Typically the group would abandon the tractor portion of the stolen vehicle within 20 miles of the site of the theft, but would hook the stolen trailer up to a tractor operated by another member of the conspiracy and paint over any logos on the stolen trailer in an effort to conceal the identity of the trailer and evade law enforcement detection. Efforts were then made to transport the stolen merchandize to major U.S. cities where the contents of the trailers were sold onto the black market.

         Among the truck-loads of merchandise targeted for theft by this group were those transporting T-Mobile cellular telephones, Samsung appliances, Ralph Lauren and Victoria’s Secret clothing, Elizabeth Arden perfume, COTY cosmetics, Nikon cameras, Apple, Dell and HP computers, Pfizer pharmaceuticals, Mead Johnson baby formula, Lorillard cigarettes, and one truckload of LG cellular telephones valued at $11.9 million. All totaled, the FBI and KSP linked these defendants to more than 32 cargo loads, valued at more than $30 million, stolen between October of 2011 and May of 2015. 

         The Court also heard evidence that, before getting involved in this conspiracy, at least three members of the group, Roberto Santos-Gonzalez, Juan Perez-Gonzalez, and Eduardo Hernandez, had prior federal convictions for remarkably similar conduct. 

         As noted above, Sera-Mastrapa was the final defendant to be sentenced in this case. In prior proceedings, Judge Pratt sentenced the other members of the conspiracy to significant terms of imprisonment, including: Santos-Gonzalez (150 months), Perez-Gonzalez (108 months), Freire-Pifferrer (87 months), Machado-Cantillo (96 months), Mario Hernandez-Oquendo (79 months), Daniel Gonzalez-Insua (72 months), Yoel Palenzuela-Mendez (60 months), Miguel Mompie (57 months), and Carlos Mendez-Rosa (40 months).

         According to Assistant United States Attorneys Matthew J. Rinka and James M. Warden, each of the defendants were also ordered to serve a period of supervised release following their incarceration, and ordered to pay millions of dollars in restitution to the victims in this case.

         “The arms of federal law enforcement are long and untiring,” said Josh J. Minkler, United States Attorney for the Southern District of Indiana. “These crimes affect everyday Hoosiers and Americans by driving up costs, across-the-board, for businesses and citizens alike.  The conspiracy in this case represented an all-out, nationwide assault on interstate shipping, but it ultimately proved no match for the collaborative efforts and determination of Federal, state, and local law enforcement agencies, assisted by private sector groups like the National Insurance Crime Bureau. Let the sentences meted out in this case be a stern warning to others:  Those who obstruct or interfere with interstate shipping will be doggedly pursued and brought to justice.”

         “The significance of this case, from a national perspective, cannot be overstated. The results represent nearly a decade’s worth of federal, state, and local law enforcement and private sector collaboration,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “It is a testament to the hard work and dedication of the FBI agents and Kentucky State Police troopers who literally chased these defendants across the United States and stopped them.”

         In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1.

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Indianapolis-United States Attorney Josh J. Minkler and the USAO Diversity Committee will be hosting a noon-time brown bag lunch gathering on Wednesday, April 10, 2019, at 10 W. Market Street, 20th Floor Goodloe Conference Room. G. Michael Witte, Executive Director, Indiana Disciplinary Commission is the keynote speaker. Witte is a graduate of Indiana University with both B.A. and J.D. degrees. Witte was the first Asian American to serve as judge in the State of Indiana and his twenty-five year career includes serving as Judge Pro Tem of Wayne County Superior Court, Richmond, Indiana (2009), and Judge of the Dearborn Superior Court, Lawerenceburg, Indiana (2000-2008), among many other distinguished accomplishments.  Witte is also an active member of Indiana’s Asian Pacific Bar Association (IN-APABA). Witte’s teaching experience is primarily in the field of imparied driving and traffic court adminstration.

United States Attorney Minkler extends an invitation to USAO-SDIN Alumni and members of the federal judiciary and court family to join the office for this important commemorative event.

G. Michael Witte, Executive Director, Indiana Disciplinary Commission

Five former officers and employees of an Indiana loan packaging and servicing company were charged for their alleged roles in a 13-year-long conspiracy to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler of the Southern District of Indiana, Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (SBA-OIG), Inspector General Jay Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) and Special Agent in Charge Grant Mendenhall of the FBI Indianapolis Field Office made the announcement.

Kerri Agee, aka Kerri Agee-Smith, 43, of Noblesville, Indiana, former president, chief executive officer and founder of Banc-Serv Partners LLP (Banc-Serv); Kelly Isley, 38, of Westfield, Indiana, Banc-Serv’s former chief operating officer; Matthew Smith, 50, of Westfield, Indiana, Banc-Serv’s co-founder; Chad Griffin, 46, of Carmel, Indiana, Banc-Serv’s former chief marketing officer; and Nicole Smith, aka Nicole Smith-Kelso, 42, of Indianapolis, Indiana, a former Banc-Serv employee, were charged in an indictment unsealed today with one count of conspiracy to commit wire fraud affecting a financial institution and one count of conspiracy to make false statements in loan-guarantee applications and purchase requests.  Additionally, Agee was charged with four counts of wire fraud and seven counts of making false statements in loan-guarantee applications and purchase requests; Isley was charged with three counts of wire fraud and four counts of making false statements in loan-guarantee applications and purchase requests; Griffin was charged with one count of making false statements in loan-guarantee applications and purchase requests; and Nicole Smith was charged with three counts of wire fraud and four counts of making false statements in loan-guarantee applications and purchase requests.

According to the indictment, from approximately 2004 until October 2017, the defendants helped originate SBA loans on behalf of various financial institutions.  On multiple occasions, the defendants fraudulently obtained guarantees for loans that the SBA deemed ineligible, the indictment alleges.  The indictment also alleges that the defendants hid signs of ineligibility from the SBA by knowingly misrepresenting the use of SBA loan proceeds and unlawfully diverting previously denied loan applications into expedited approval channels.  Matthew Smith left Banc-Serv in or around the end of 2005, and he founded and became the managing director of a non-bank lending company.  According to the indictment, Smith knowingly caused false and fraudulent loan applications that were prepared by Banc-Serv employees and guarantee requests to be transmitted to the SBA.  

The indictment further alleges that when a fraudulently guaranteed loan defaulted, the defendants caused other Banc-Serv employees to transmit requests to the SBA to purchase the defaulted loans from investors and lending institutions, thereby shifting losses on the ineligible loans to the SBA. 

The indictment alleges that the defendants and their co-conspirators originated dozens of loans, totaling over $10 million in disbursements, which were not eligible for SBA guarantees.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The SBA-OIG, the FDIC-OIG and the FBI investigated the case.  This case is being prosecuted by Trial Attorneys William Johnston and Vasanth Sridharan of the Criminal Division’s Fraud Section.  The Department of Housing and Urban Development Office of Inspector General also assisted in the investigation.

Indianapolis-In honor of #WomensHistoryMonth, United States Attorney Josh J. Minkler honors the district’s first female AUSA: Sarah Evans Barker, Senior Judge, SDIN, who served the district as an AUSA from 1972-1976, as First Assistant U.S. Attorney from 1976-1977, and as United States Attorney from 1981-1984 before being nominated to the vacant seat on the U.S. District Court, SDIN. Judge Barker is a trailblazer extraordinaire and the ripples of her DOJ legacy and presence positively affect the daily work the office engages in even today. USA Minkler would also like to recognize the district’s most recently hired female AUSA, Amanda Kester, who is currently assigned to the district’s Drug and Violent Crime Unit. AUSA Kester began her tenure with DOJ on 10/15/18. Prior to, she served as a Morgan County Deputy Prosecutor where she specialized in technology prosecutions including crimes against children. USA Minkler is exceptionally proud of the district’s 17 female AUSAs, devoted support staff including female leadership, and two supervisory attorneys, Cynthia Ridgeway, the First Assistant U.S. Attorney, and Shelese Woods, Civil Chief.

The United States Attorney also proudly recognizes the district’s Women’s Leadership Initiative (WLI) Steering Committee: AUSAs Cindy Cho, Kelly Rota, Kate Olivier, Gina Shields, FBI Special Agent Victoria Madtson, and Sarah Dame, Clerk for U.S. District Court Judge Sarah Evans Barker. The WLI meets quarterly at the USAO to discuss issues central to professional development and civic responsibility.

 

Sarah Evans Barker  

Amanda Kester

 

INDIANAPOLIS - United States Attorney Josh J. Minkler announced the sentencing of Kevin Ingram, 29, following his conviction in federal court for four armed robberies of Indianapolis area businesses.  U.S. District Judge Tanya Walton Pratt sentenced Ingram to 496 months (40½ years) in federal prison.

“Indianapolis is a safer place with Kevin Ingram behind bars,” Minkler said.  “He was a dangerous man who lived a life of lawlessness and violence.  This sentence reflects the gravity of his choices throughout his life, culminating in threatening to shoot multiple women over the course of four armed robberies in our community.  It also reflects this Office’s commitment to bringing the full weight of federal law enforcement brought to bear on those who choose to terrorize our community with violence.”

Following a trial in November 2018, a federal jury convicted Ingram of robbing four Indianapolis stores at gunpoint in an eight-day crime spree in October 2017.  Two of the stores were beauty salons, where Ingram stuck a semi-automatic pistol in the faces and backs of two store workers and two customers.  He demanded cash and threatened to shoot if they did not comply.  The other two stores Ingram robbed were larger retail stores, which Ingram robbed in the middle of the afternoon, with the stores full of patrons, including children.  All of those he threatened and robbed were women, and the jury heard testimony from each of them.

Ingram coerced his girlfriend to participate in one of the robberies.  She testified at trial that he choked her and pointed a gun at her as she resisted him in the parking lot outside one of the salons.  She ultimately went inside with him, taking money from the register while he held the store at gunpoint.  At the time, she was six months pregnant with his child. 

These robberies were part of lengthy criminal record that included multiple violent felonies.  Ingram had eight juvenile adjudications before turning 17, including auto theft (twice) and battery resulting in bodily injury.  At 17, he robbed a woman at gunpoint, for which he was convicted as an adult.  After four years in prison, he committed another crime just three months later.  Within less than a year, Ingram had robbed two more women in Indianapolis.  After several more years in prison, he again continued committing crimes, including multiple offenses involving drugs and guns, before committing the October 2017 robberies.

Before being apprehended in this case, though, Ingram fled to Houston, Texas.  Evidence was presented at sentencing that, while in Houston, Ingram robbed several more women at knifepoint, including a pregnant woman.  Ingram still has active arrest warrants from there.

According to Assistant United States Attorneys Nick Linder and Lawrence Hilton, who prosecuted the case for the government, Ingram will serve at least 35 years of his sentence, even with good time credit.  He must also repay the $3,125 he stole during the four robberies.

This case was investigated by the Federal Bureau of Investigation. “This sentence should provide some comfort to Mr. Ingram’s victims whose lives were forever changed by his criminal and traumatizing actions,” said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. “The 40-years he received is also a testament to the hard work and dedication of our agents and law enforcement partners who worked hand in hand to ensure Mr. Ingram no longer poses a threat to the communities he terrorized.”

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit violent crimes involving firearms.  (See United States Attorney’s Office, Southern District of Indiana Strategic Plan, Strategic Objective 2.3.)

Indianapolis – Josh J. Minkler, the United States Attorney, announced today that Kelly Joe Spinks, Jr and Joseph Pickett, Sr., were sentenced in United States District Court in Indianapolis by the Honorable Tanya Walton Pratt, to terms of imprisonment of 140 months’ and 135 months’ imprisonment, respectively, for their roles in a drug conspiracy in which over four tons of marijuana were obtained and distributed in the Southern District of Indiana.

Spinks and Pickett were prosecuted in an Organized Crime and Drug Enforcement Trafficking Force (OCDETF) investigation dubbed “Operation Northern Exposure” which was conducted by  the U.S. Drug Enforcement Administration – Indianapolis District Office, Internal Revenue Service, Indianapolis Metropolitan Police Department and Beech Grove Police Department.  The two-year investigation resulted in the indictment of seven defendants on violations of the Federal Controlled Substance Act, Money Laundering and other charges. 

Over twenty search warrants served in the case led to discovery and seizure of over $4,000,000.00 in U.S. currency, 181 firearms, 31 vehicles, 2 motor homes, and 16 motorcycles.

The investigation led to the discovery of an Indianapolis, Indiana based, large scale, cross-country marijuana drug trafficking organization that was run by JOSEPH PICKETT, SR., and KELLY JOE SPINKS, JR., and operated from 2015 through March of 2017.

The investigation revealed that beginning in 2015 and continuing through March of 2017, JOSEPH PICKETT, SR., KELLY JOE SPINKS, JR., DARRELL PICKETT and others traveled to California and obtained anywhere between 100 pounds (45.45 kilograms) and 700 pounds (318.18 kilograms) of marijuana per trip from sources of supply in California.  These trips to California occurred roughly every two to three weeks during the previously indicated period of time.  The marijuana was then transported from California to Indianapolis, Indiana where it was stored and ultimately redistributed by PICKETT, SR., SPINKS, JR., DARRELL PICKETT and others, including SHEILA STEPP and WILLIAM BELLEW, JR.

“One of this Administration’s priorities is to dismantle organized crime operations like the Pickett crew,” said Josh J. Minkler, United States Attorney.  “The fruits of this complex joint investigation including the seizure of significant assets and the Court’s sentence should serve as a warning bell to all.”

The SPINKS-PICKETT drug trafficking organization procured and distributed over four tons (3,636 kilograms) of marijuana during the course of the charged conspiracy. 

Other defendants sentenced in the case include:

Darrell Pickett – 60 months’ imprisonment

Sheila Stepp  - 20 months’ imprisonment

William Bellew, Jr. – 20 months’ imprisonment

Leonard Allen – 10 months’ imprisonment

According to Assistant United States Attorney Barry D. Glickman, Deputy Chief of the Drug and Violent Crime Unit, who prosecuted the case for the United States, Judge Pratt ordered both Spinks and Pickett to serve five-year terms of supervised release at the conclusion of their terms of imprisonment.

Evansville – United States Attorney Josh J. Minkler announced the indictment of 10 fentanyl traffickers, which was unsealed today in the U.S. District Court in Evansville, Indiana. Law enforcement officers from the region participated in the execution of arrest and search warrants related to the investigation on persons and residences in Evansville and elsewhere. Initial hearings for seven of the defendants charged in the indictment will be held today in the Evansville United States District Court starting at 3:00 p.m. 

The indictment is the result of an investigation by the Evansville office of the Drug Enforcement Administration, Evansville Vanderburgh County Drug Task Force, Evansville Police Department, Federal Bureau of Investigation, Bureau of Alcohol Tobacco, Firearms and Explosives, Internal Revenue Service, and other federal, state and local law enforcement agencies. The members of the conspiracy are alleged to have brought large amounts of fentanyl pills into the Evansville, Indiana area from Phoenix, Arizona through parcel shipments for further distribution.

The indictment charges ten individuals as follows:

• Jacob Beshear, 25, Evansville, Indiana
• Crystal Vidal, 27, Phoenix, Arizona
• Joshua Carr, 38, Phoenix, Arizona
• David Wargel, 24, Evansville, Indiana
• Ciara Wargel, 24, Evansville, Indiana
• Matthew Hunter Bennett, 22, Evansville, Indiana
• Lauryn Smith, 19, Evansville, Indiana
• Austin Davis, 19, Evansville, Indiana
• Madison Brown, 23, Boonville, Indiana
• Abigail Shipley, 20, Newburgh, Indiana

 

“Laser focus on dismantling organizations involved in the distribution of fentanyl and the deadly combination of fraudulent firearms purchases is a top priority for the Department of Justice and for this office,” said Minkler. “Today we recognize the collaborative effort and partnerships old and new as we announce again our desire to make the Southern District of Indiana one of the most inhospitable communities to traffic illicit drugs.”

Fentanyl and fentanyl-related substances represent the deadly convergence of the synthetic drug threat with the current national opioid epidemic. DEA Indianapolis Acting Assistant Special Agent in Charge Dan Gordon emphasized, “DEA recognizes the importance of working with our law enforcement counterparts to attack the violent drug trafficking networks producing, importing, and profiting from these deadly drugs. The DEA Mission is to protect our communities against narcotics traffickers who prey on those who suffer the scourge of addiction.”

Evansville Police Chief Billy Bolin expects these arrests to send an important message, “We have seen the devastating effects Fetanyl can have on members of our community. Despite the known dangers of Fentanyl abuse, these individuals were willing to profit from its illegal sales. These arrests send a message that the distribution of Fetanyl and other illicit narcotics will not be tolerated in Evansville.” Evansville Police Chief Billy Bolin

The Indictment charges ten (10) defendants with conspiracy to distribute fentanyl. Two (2) of the defendants, Beshear and Vidal, are charged with money laundering. Three (3) of the defendants, Beshear, David Wargel, and Brown, are charged with firearms straw purchases.  According to Assistant United States Attorney Frank E. Dahl III, who is prosecuting the case for the government, the defendants face possible sentences of up to 20 years in prison if convicted. 

An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who traffic in large quantities of illegal opiates and other dangerous drugs. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.2

Indianapolis B United States Attorney Josh Minkler announced today that the Southern District of Indiana was the recipient of the 2018 Organized Crime Drug Enforcement Task Forces (OCDETF) National Award for Innovative Investigation Efforts for the multi-agency investigative work conducted during “Operation Smooth Criminal.” This prestigious national award most exemplifies the mission and spirit of the OCDETF Program and recognizes the many agencies within the Southern District of Indiana involved in “Operation Smooth Criminal.”

Recognized for their contribution to this successful investigation were investigators Louis Arona, Drug Enforcement Administration (DEA), DeMarkus Calhoun, United States Postal Inspection Service (USPIS), Seth Murray, Internal Revenue Service – Criminal Investigation (IRS - CI), and Assistant United States Attorneys Cindy J. Cho and MaryAnn T. Mindrum.

“The Department’s OCDETF successes would not be possible but for the courageous sacrifices made by dedicated public servants like the agents and AUSAs assigned to this operation,” said United States Attorney Minkler. “After more than 20 years, I continue to be impressed with these tireless commitments to safety and the rule of law. We especially appreciate this recognition of creative and innovative enforcement oftentimes necessary to meet criminals where they hide.” 

“The false sense of anonymity provided by the Dark Web and the subterfuge practiced by the suspects in this case was no match for the combined efforts of federal law enforcement,” said Patricia Armstrong, Inspector in Charge of the U.S. Postal Inspection Service, Detroit Division.  “The investigative work that led to the distinguished national OCDETF award for Operation Smooth Criminal serves as a model for tackling these complex cases through utilizing innovation.” 

“The strength of the DEA has always, and continues, to thrive from the partnerships forged with our various law enforcement counterparts. This award marks a pivotal point in law enforcement history. While today’s traffickers are taking advantage of enhanced technology like encryption and virtual currencies, the men and women of our modern-day law enforcement community are exploring new and innovative ways to dismantle these operations,” said DEA’s Brian M. McKnight.

“IRS Criminal Investigation has dedicated resources to understanding and tracking financial transactions in the cyber environment,” said Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge. “Special Agent Seth Murray’s work on Operation Smooth Criminal is a fine example of our successes in the evolving area of cyber financial crime.  Criminals often think they can exploit the anonymity of the cyber world; however, IRS-CI and our partners are right there to shut them down. I am proud of the work of Special Agent Murray and everyone who was a part of this outstanding investigative team. I congratulate Seth and all the award recipients for their exemplary efforts.”

“Operation Smooth Criminal” was an investigation spanning over four years that ultimately dismantled a heroin and cocaine distribution ring supplying drugs regionally and throughout the country. What began as an investigation into drug trafficking on the Dark Web led to the ultimate arrest and conviction of Burnett, a/k/a “Doe,” the leader of a major heroin and cocaine distribution ring in the Indianapolis area and elsewhere. In October 2013, federal law enforcement agencies shut down the Dark Web site Silk Road. Through a joint investigation by DEA, USPIS, and the IRS-CI, law enforcement learned that Lee Gray, a Camby, Indiana, resident at the time, was selling heroin and cocaine in exchange for bitcoins on Silk Road, and later other Dark Web sites such as Black Bank. Gray shipped the drugs to customers located throughout the United States using the U.S. mail. Gray then laundered his bitcoins using foreign bitcoin-exchange companies to wire U.S. currency into multiple bank accounts in his own and other names. He also sold bitcoins on the Dark Web to other users in exchange for cash that the other users mailed to him. Gray obtained his supply of heroin and cocaine from Burnett. From at least 2012 through August 18, 2015, Burnett obtained heroin and cocaine directly from a Mexican source of supply, and would pay the Mexican source by delivering large bags of money to Mexican couriers. Burnett distributed the drugs to drug distributers, including Gray and Alan Duncan (a/k/a “Al Gore”), another drug distributor in the Southern District of Ohio, who sold these drugs within and outside of their local communities. Burnett was responsible for distributing at least 17 kilograms of heroin and 25 kilograms of cocaine during the course of the conspiracy. Burnett received a sentence of 188 months imprisonment. Gray received a sentence of 75 months. Gore received a sentence of 150 months imprisonment in Ohio.

This investigation’s success was possible due to the collaborative efforts by multiple organizations, including the DEA Indianapolis Office, USPIS, IRS - CI, DEA Dayton Office, U.S. Attorney’s Office for the Southern District of Indiana and U.S. Attorney’s Office for the Southern District of Ohio.

INDIANAPOLIS - United States Attorney Josh J. Minkler will celebrate the graduation of the second USAO Leadership League class at Daniel Webster Elementary School during a ceremony this week.  Leadership League is a six-week, after-school program that teaches conflict resolution through lessons and hands-on activities.  A collaborative effort, Leadership League paired fifth and sixth grade students with mentors from the United States Attorney’s Office, the United States District Court, the Indianapolis Metropolitan Police Department and Aero Industries. With the help of Peace Learning Center Facilitator Francesca Keesee, the group learned the “STEPS” of conflict resolution: Staying calm, Telling your story, Exploring other points of view and Problem Solving.

            “Empowering these young men and women with non-violent conflict resolution skills will help guide and prepare them for life,” said Minkler. “Society portrays violence as a way to solve issues. The Leadership League gives options that will translate into success in school, the community, and in the City of Indianapolis.”

The 2019 graduates include:  NaTaiyah Bean, Jose Gomez, Tamarus Gray, Jarrell Green, Tyree Jarrard, La-Zavion Horns, Xaviea Lewis, Jayme Orner, Haylie Parrott, Nevaeh Russell, Madison Sterrett, Allyssa White, and Donnavon Williamson.

Leadership League mentors were: USAO employees Taylor Kirklin, Lindsay Karwoski, Jeffrey Preston, Janelle Peters, Shaquanna Shockley, Michelle Butler, Stephanie Lloyd, Jennifer Ross, and Deb Mathies; USDC law clerks Michael Mohler and Landyn Rookard; IMPD Officers William Young and Jason Norment; and AERO Industries employees Michelle Gent and Melissa Reisinger. Assistant U.S. Attorney Kelly Rota conceptualized and led the program in partnership with the United States Attorney’s leadership team.

This effort marks the fifth time that USAO-SDIN has collaborated to provide programming with Daniel Webster Elementary School. Previous projects include: The Pledge Against Gun Violence, the You Are Beautiful Project, and the Courage Project. The first Leadership League class graduated in May 2018.

This year’s graduation will be held February 22, 2019, at 9:30 a.m. at Daniel Webster Elementary School #346, 1450 S. Reisner Street, Indianapolis, IN 46221. The public is invited.

Leadership League demonstrates our office’s continued commitment to maintaining support for community outreach program with the help of our community partners.  (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 10.2).

Indianapolis – United States Attorney Josh J. Minkler today announced federal criminal charges against 24 individuals for a methamphetamine, heroin and cocaine distribution conspiracy and a federal firearms related charge.

On February 13, 2019, agents and officers from various law enforcement agencies executed arrest and search warrants in numerous locations centralized to the Haughville community in Indianapolis, Indiana. This operation led to the arrest of 22 individuals. During the investigation approximately 40 firearms, $155,000 in currency, 3 vehicles, and quantities of heroin, fentanyl, methamphetamine, cocaine and marijuana were seized.

Those charged include:

Jshaun Trice, 31, Indianapolis

Terrence Stum, 35, Indianapolis

Demetrick Holder, 20, Indianapolis

Darryl Allen, 35, Indianapolis

Eric Bard, 33, Indianapolis

Dustin Manuel, 30, Indianapolis*

Kelvin Washington, 34, Indianapolis

Gerald Hoskins, 23, Indianapolis

Devin Jones, 28, Indianapolis*

Adrian Myles, 40, Indianapolis

Christopher Hill, 30, Indianapolis

Robert Hadley, 48, Indianapolis

Danny Jenkins, 47, Indianapolis

Antonio McClure, 37, Indianapolis*

James Gibson, 33, Indianapolis

Carlo Payne, 39, Indianapolis

Thomas Acord, 30, Bloomington

Alton Brown Sr., 53, Indianapolis*

Steven Savage, 29, Indianapolis

Derrick O’Connor, 52, Indianapolis

Melissa Kidwell, 39, Indianapolis

Jacqueline Huffman, 40, Indianapolis

Jacob Jones, 30, Indianapolis

Sheridan Sisk, 37, Indianapolis

*Remains a fugitive

According to the indictment, Jshaun Trice and Terrence Stum directed the activities of a methamphetamine, heroin and cocaine trafficking organization in Indianapolis, Indiana. Jshaun Trice, Terrence Stum, Demetrick Holder and Gerald Hoskins coordinated their activities by receiving methamphetamine, heroin and cocaine from diverse sources, sharing controlled substances with each other, and distributing the controlled substances to customers. Individuals in the conspiracy distributed methamphetamine, heroin and cocaine on the 700 block of Arnolda Avenue, in the Haughville neighborhood in Indianapolis, Indiana, among other locations.

“Utilizing the Organized Crime Drug Enforcement Task Force model, the Justice Department works collaboratively to target, investigate and prosecute organizations engaged in dangerous and harmful drug trafficking activity in our community,” said Josh Minkler. “This year, the United States Attorney’s Office created a standalone OCDETF Unit led by Senior Litigation Counsel Bradley A. Blackington to tackle and unearth individuals and organizations operating to the detriment of communities like Haughville. The challenges we face are not insurmountable when we pair criminal prosecution as a deterrent with wraparound services like those being offered by the City in this instance.” 

 This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Indianapolis Metropolitan Police Department, Marion County Sheriff’s Department, United States Postal Inspection Service, Internal Revenue Service Criminal Investigation Division, and the Indiana State Police.

“These arrests disrupted a violent drug trafficking ring and sent a clear message – if you are involved in illegal drug activity and violent crime in our city you will wake up one morning with law enforcement at your door. This case is at the heart of our collective mission to rid our communities of violent drug offenders and the destruction their activities create,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI, along with our federal, state and local partners, remains strongly committed to identifying and investigating those responsible for harming our communities.”

“Our community and the Haughville neighborhood deserve better than to be re-victimized by the crime and violence they have endured,” said Mayor Joe Hogsett. “This means the illicit economy and criminal infrastructure that existed here must be replaced with hope and opportunity. And so our Office of Public Health and Safety will be convening community and City resources to help fill the needs of a neighborhood in recovery.”

“The individuals removed from our community account for thousands of reported violent crimes. These arrests will reduce not only the amount of illicit drugs in our city, but also the violence that accompanies the drug trade,” said IMPD Chief Bryan Roach. “To break the cycle of drug-related crime and violence, we must fill the economic vacuum left behind, which is why the wraparound services that will be available are critically important to the safety of our city. The dedicated women and men of the IMPD will continue to work alongside our local and federal partners to improve the safety of our neighborhoods and the quality of residents’ lives.”

“As violence and drug trafficking tactics evolve, so does the strategy we implement with federal, state, and local law enforcement agencies as well as our community partners,” Marion County Prosecutor Terry Curry stated. “We are your neighbors, and we are committed to improving public safety in every neighborhood of our county.”

“This is a great example of the synergy that can be gained when law enforcement pools resources and works together to bring down criminal drug organizations,” said Inspector in Charge Patricia Armstrong of the Detroit Division, U.S. Postal Inspection Service. 

Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation said, “IRS Criminal Investigation is charged with disrupting the money flow of criminal organizations. Our agents trace criminal proceeds and work to deprive criminals of their illicit spoils. Together with our OCDETF partners we dismantle illegal drug and money laundering enterprises that try to take root in Indiana.”

Indiana State Police Superintendent Doug Carter said, “Partnerships like this are what put criminal organizations out of business and their operators in prison.” Carter continued, “For those who are addicted, there is help, but for those who are contributing to - and profiting from - the addiction and misery of others; we have prison cells waiting.”

An indictment is merely a charge and not evidence of guilt. All defendant are considered innocent until proven guilty in federal court.  

                        In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. The Organized Crime Drug Enforcement Task Force (OCDETF) is utilized to target, investigate, and prosecute more violent criminal organizations, with a goal of detaining and sentencing more violent offenders to significant prison terms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan  Section 2.1

INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that a federal grand jury has indicted Kevin Kuhnash, 57, and Jason Jimerson, 44, formerly the Chief Executive Officer and Chief Operating Officer of Lucent Polymers, Inc., an Evansville-based plastics manufacturer. The two men were arrested today by the FBI. The indictment alleges that they committed fraud when they orchestrated the sale of Lucent to another company but concealed critical defects in Lucent’s business, including fraud that Lucent was committing on its customers.  Also today, the U.S. Securities and Exchange Commission announced that it also charged Kuhnash and Jimerson with fraud.

“Corporate officials who put deviousness over good faith degrade the integrity of our markets and impugn the reputation of American industry,” said Minkler. “This office will continue to prioritize the investigation and prosecution of corrupt corporate executives who enrich themselves through fraud and deception.”

The indictment alleged that a key aspect of Lucent’s business was its purported ability to design and manufacture custom plastics products that met customers’ exact specifications at very low prices. Lucent’s customers included manufacturers and suppliers of automobiles, automobile air bags, electrical boxes, ceiling fans, kitchen appliances, and heating and air conditioning units.  Their specifications often included the plastic’s flame resistance, color, strength and durability, and certification by Underwriter’s Laboratories (“UL”).

According to the indictment, Lucent’s internal testing allegedly showed that its low-cost products often did not meet its customers’ specifications or UL certification standards.  Nevertheless, Lucent employees allegedly created and submitted to customers false records stating that the internal testing confirmed that the products were within spec, when they were not. Even when customers complained, Lucent employees allegedly continued to conceal that they had altered the test results.

The indictment alleged that in 2013, Kuhnash and Jimerson, as CEO and CFO, were involved in trying to sell Lucent’s business to another company. Kuhnash and Jimerson allegedly both owned stock in Lucent and stood to, and allegedly did, receive hundreds of thousands of dollars’ worth of compensation when the sale was completed. 

According to the indictment, in September of 2013, if not before, both Kuhnash and Jimerson were allegedly made aware that Lucent was routinely deceiving its customers regarding its products. As an example, the indictment referenced an email from a Lucent employee that both Kuhnash and Jimerson received that discussed data manipulation, changing UL-certified product formulations, and customer complaints. The indictment further alleged that, in discussing the email amongst themselves, Kuhnash and Jimerson stated that they would not let anyone see or have knowledge of the employee’s email. 

The indictment alleged that neither did Kuhnash or Jimerson take any meaningful steps to stop the Lucent’s alleged fraud on its customers, nor did they disclose the existence of the fraud to the company that was acquiring Lucent’s business. Lucent was acquired shortly thereafter, and Kuhnash and Jimerson allegedly received the significant compensation for their Lucent stock.  That compensation allegedly included stock in the company that bought Lucent.

Additionally, the indictment alleged that, even after the acquisition was completed,  Kuhnash and Jimerson did not take meaningful steps to stop Lucent’s fraud on its customers and did not disclose the existence of the fraud, including to the acquiring company’s outside auditors.

According to the indictment, in 2015, the acquiring company was itself acquired by a larger, publicly traded company. Both men allegedly owned significant stock, and as a result of the second acquisition, both allegedly received hundreds of thousands of dollars. In total, the indictment alleges that Kuhnash and Jimerson personally received approximately $2 million from the two acquisitions of their stock.

The indictment further alleges that Lucent’s fraud on its customers was discovered by the publicly traded company a few months after acquiring Lucent’s business. On the day the publicly traded company disclosed the existence of Lucent’s fraud to investors, its stock dropped 25%.   

Finally, the indictment alleges that Jimerson obstructed justice and made false statements to the FBI by stating he was not aware of Lucent’s fraud on its customers and did not receive the employee email, when he allegedly did.

According to Assistant United States Attorneys Nicholas J. Linder and Steve DeBrota, who are prosecuting the case for the government, the defendants face possible sentences of up to between five and twenty years of imprisonment for each count.

This case is being jointly investigated by the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation.

 Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation said, “Business executives that cheat, lie, and steal stain the fabric of the American economy. These Lucent executives filled their pockets through fraud and numerous acts of deceit. As in this case and countless others our agents will find corruption and bring it to justice.” 

     “These individuals learned of significant fraudulent practices at the company they led and let it continue. Even during and after the sale of the company, they chose not to reveal the fraud in order to enrich themselves from the sale of their stock,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This case is a result of the strong partnership and working relationship between the FBI, federal prosecutors, and the IRS-Criminal Investigations Division to combat a significant fraud scheme impacting private and publicly-traded companies.”

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1

Indianapolis - United States Attorney Josh J. Minkler announced today that Chief Judge Jane Magnus-Stinson sentenced Ricky Dean Clark, 37, to a term of life imprisonment without parole for multiple charges involving the sex exploitation of three minor children, including one child who lived in Ireland. In addition, Clark was sentenced for distributing, receiving, and possessing child pornography.

“While no sentence can cure the damage this child predator did to his innocent victims, we can assure the public that Clark will never ever be in the position to harm another child,” said Minkler. “A sentence of life without parole is reserved for the worst of the worst and that is exactly what Chief Judge Magnus-Stinson imposed in this case.”

“This life sentence sends a very strong message to those who would engage in criminal sexual activity and abuse the trust of innocent children,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “I am proud of the diligent work of our agents and law enforcement partners to identify and investigate sexual perpetrators and bring them to justice so they can’t victimize anyone again.”

“As law enforcement, it is our responsibility to protect those who are most vulnerable, especially innocent children. It is a responsibility the men and women of the IMPD do not take lightly,” said Indianapolis Metropolitan Police Department (IMPD) Chief Bryan Roach. “The dedication of our officers, strengthened collaboration with our local, state, and federal law enforcement partners, and critical investments in technology mean we will continue to remove from our community those who would seek to victimize our children.”

When Clark was originally arrested in Hendricks County, he was charged with possessing child pornography; however, an investigation by the Indiana State Police and the Indianapolis Metropolitan Police Department revealed that Clark’s illegal activities with children were much more extensive. Computer forensic examiners found videos showing that Clark had recorded himself engaging in sexually explicit conduct with a prepubescent child in June of 2013. In addition, investigators also found 17 videos, created by Clark, showing a female child engaged in sexually explicit conduct at Clark’s direction. The child, who was less than 13 years of age, lived in Ireland, and Clark’s communication with the child occurred over Skype. Clark also distributed known images of child pornography to this girl in order to convince the child to engage in sexually explicit conduct for him.

Later in the investigation, forensic examiners uncovered evidence that Clark also recorded himself sexually abusing yet another pre-pubescent child. Clark sent these videos to the girl in Ireland, again as a way to encourage her to engage in sexually explicit conduct for him and to convince her that there was nothing wrong with the requests he made of her.

This case came to the attention of law enforcement in the United States through the cooperative work of the National Center for Missing and Exploited Children, which had received citizen complaints about possibly illegal sexual conduct by the defendant. Along with the FBI, the Indiana State Police and the Indianapolis Metropolitan Police Department investigated these tips. The defendant’s criminal conduct was not limited to the United States. In Ireland, a child’s family discovered Clark’s communications with the child, and the family made a report to An Garda Siochana who began their own investigation. In November of 2017, investigators recovered additional evidence from Ireland, showing the defendant’s pattern of conduct with a female child. Minkler noted the cooperation from the Garda as key to the success of the prosecution, saying “We cannot thank members of the An Garda Siochana enough for their thorough work in collecting and preserving evidence, as well as the care that Irish authorities took in working with the victim’s family and our staff. When predators use the internet to abuse children, they hope that the complexities of international investigations will help them to avoid accountability. This child predator found no safe harbor in either Ireland nor in the United States.”

This case was a joint investigation involving the Indianapolis Metropolitan Police Department’s Digital Forensics Unit, the Indiana State Police Cyber Crime Unit, the Indiana Internet Crimes Against Children Task Force, the FBI, and An Garda Siochana (the Irish National Police). Susie’s Place in Brownsburg provided assistance with child interviews. The federal prosecutors working on the matter were Assistant United States Attorneys Kristina Korobov and Steven DeBrota.

                             In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan  Section 4.1.

Indianapolis – Josh J. Minkler, the United States Attorney, announced today that operations at the U.S. Attorney’s Office, Southern District of Indiana (USAO-SDIN) continued during the appropriations lapse and recognized the important contributions made by USAO staff and investigative agents. The significant case-related accomplishments below, among others, underline the government’s dedication to mission as described by the United States Attorney in the USAO Strategic Plan.

• United States v. Jimmy Mitchell. Mitchell, a Boonville man found guilty of production and possession of sexually explicit material involving a minor following trial in August 2018, was sentenced to 40-years’ imprisonment. The collaborative investigation was led by the Evansville FBI Safe Streets Task Force Child Exploitation Section in partnership with the Warrick County Sheriff’s Office. Prosecution by Assistant United States Attorney (AUSA) Kyle Sawa.

• United States v. Neiko Currie and United States v. Howard Sawyer. Two inmates at the U.S. Bureau of Prisons sentenced to 30 and 120 months’ imprisonment, respectively, for possession of contraband (Currie) and assaulting a federal officer (Sawyer). Prosecution by AUSA James Warden.
   
• United States v. Bradley Gulledge. Federal charges including being a felon in possession of firearm, to-wit: a Taurus 9mm handgun, a Ruger 40 caliber handgun, model SR40, a MAADI AK47 semiautomatic rifle, and the distribution of 50 or more grams of a mixture or substance containing a detectable amount of methamphetamine. Prosecution by AUSA Pamela Domash.
   
• United States v. Austin Greene. Federal charges including conspiracy to steal firearms from a Federal Firearms Licensee and being an unlawful user of controlled substances in possession of a firearm, to-wit: a Beretta 9mm semiautomatic handgun. Prosecution by AUSA Pamela Domash. 
   
• United States v. Teria Anderson. Anderson was convicted following a trial by jury in the Indianapolis Division of the United States Attorney’s Office, of being a prohibited person in possession of a firearm, to-wit: a Superior Arms S-15 S.56 rifle, a Marlin lever-action rifle, a Smith & Wesson .40 caliber handfun, following a trial by jury. Prosecution by Senior Litigation Counsel (SLC) and Lead Organized Crime and Drug Enforcement Task Force (OCDETF) Attorney Bradley Blackington and Special Assistant U.S. Attorney Eric Babbs.
   
• United States v. Sevon Thomas. Thomas was convicted following a trial by jury in the New Albany Division of the United States Attorney’s Office, charged with Intent to Distribute Methamphetamine and Carrying a Firearm During and in Relation to a Drug Trafficking Crime. Prosecution by AUSAs Lauren Wheatley and Frank Dahl.
   
• United States v. Quinones. Quinones pled guilty to Conspiracy to possess with intent to distribute and to distribute 500+ grams of methamphetamine in violation of 21 U.S.C. §§ 841 and 846, and to laundering monetary instruments, in violation of 18 U.S.C. § 1956. No sentencing date has been set yet. Prosecution by AUSA Michelle Brady.
   
• United States v. Craig Nichols. Nichols, the Building Commissioner for the city of Muncie, was sentenced to 24-months’ imprisonment and was ordered to pay $217,500 in restitution to the City of Muncie, Muncie Sanitary District, and Dannar Construction.
   
• United States v. Hector Castro-Aguirre, et.al. Four defendants were sentenced for their involvement in a multi-state conspiracy to distribute methamphetamine and cocaine. Hector Castro-Aguirre and Rafael Rojas-Reyes, both members of the Sinaloa Cartel, were sentenced to life imprisonment under the Continuing Criminal Enterprise statute, which is also known as the “drug kingpin statute.”  John Ramirez-Prado, a drug courier for the organization, was sentenced to 240 months’ imprisonment. Jose Manuel Carrillo-Tremillo, the leader of a cocaine trafficking cell operating in Reading, Pennsylvania and Queens, New York, was sentenced to 215 months’ imprisonment. Prosecution by SLC and Lead OCDETF Attorney Bradley Blackington.
   
• United States v. Richard Conn. Conn was sentenced to 24-months’ imprisonment following his conviction for possession of and manufacturing a homemade silencer, in violation of the National Firearms Act (NFA). Prosecution by AUSA Jeff Preston.
   
• United States v. Vines. Vines was convicted on January 28, 2019 following a trial by jury in the Indianapolis Division of the United States Attorney’s Office. Charges involve sex trafficking of a minor child, transportation of that child across state lines for the purpose of trafficking her, as well as involvement in an organization that promoted the prostitution of other women. Prosecution by AUSAs Kristina Korobov and Lawrence Hilton.
   
• United States v. Jorge Tadeo, et al. and United States v. Cristian Gutierrez-Alvarez, et al. Twenty defendants have been indicted for Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C. § 846. Prosecution by SLC and Lead OCDETF Attorney Bradley Blackington.
   
• The USAO also announces that 205 defendants were prosecuted in Indianapolis under the umbrella of the Department’s reinvigorated Project Safe Neighborhoods 2.0 initiative. The Drug and Violent Crime Unit who handled these prosecutions is led by Deputy Chief Barry Glickman and is comprised of the following AUSAs: William McCoskey, Jeff Preston, Peter Blackett, Pamela Domash, Lawrence Hilton, Jeremy Morris, Kyle Sawa, Amanda Kester, and Abhishek Kambli.

An Information or Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Evansville –United States Attorney Josh J. Minkler announced today that an Evansville, Indiana woman who worked as the Executive Director at Echo Housing Corporation, was indicted on three counts of theft concerning programs receiving federal funds. Stephanie L. TenBarge, 71, Evansville, was arrested today and will appear before a federal magistrate judge for her initial appearance.

Echo Housing Corporation is a non-profit organization based in Evansville. Echo’s mission is to create and sustain safe and affordable housing, provide supportive services, and promote community development for homeless men, women, children, and veterans. 

“The public deserves better from officials in positions of trust,” said Minkler. “When public officials line their pockets with taxpayer dollars intended for homeless men, women, children, and veterans, they should expect the scrutiny of state and federal law enforcement and the necessarily harsh consequences that follow. The Evansville community deserves better from the public officials they trust with taxpayer dollars. This office intends to hold those who abuse their position of trust accountable.” 

TenBarge served as Executive Director of Echo Housing Corporation and in that role had the primary responsibilities of bookkeeping, balancing bank statements, and preparing finance reports and records for Echo’s Board of Directors to approve. TenBarge maintained and controlled Echo’s checking accounts and had the ability to direct funds from the organization’s accounts to herself and other individuals. 

From January 1, 2015 through December 31, 2017, TenBarge is alleged to have embezzled funds from Echo Housing Corporation by making unauthorized payments to herself, using Echo funds to pay for personal goods, services and property taxes, and issuing unauthorized payroll checks to herself. During this time period, Echo received federal funds from the U.S. Department of Housing and Urban Development, the U.S. Department of Justice, and the U.S. Department of Labor. 

This investigation was a collaborative effort between the Federal Bureau of Investigation, Evansville Police Department, U.S. Department of Housing and Urban Development Office of Inspector General, Indiana State Board of Accounts, and United States Secret Service.

“The alleged actions of Mrs. TenBarge, using her official position for personal gain, grossly undermines the honest work being done every day by public officials,” said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. “Working with our law enforcement partners to investigate public officials who commit federal crimes and victimize the people they should be serving, is one of the FBI's highest criminal priorities.”

“The actions of Mrs. TenBarge had a direct impact on those who rely on ECHO Housing funds as a means of accessing affordable housing,” stated Billy Bolin, Evansville Police Chief.  “Throughout this investigation, we remained committed to achieving justice for everyone involved in this case. The diligence by Financial Crimes Unit investigators and our federal law enforcement partners has led to the arrest of Mrs. TenBarge. This investigation and subsequent arrest is a reminder that there are no victimless crimes. To our federal law enforcement partners, we say thank you for your ongoing support of our local agencies.”

“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms,” said Brad Geary, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General. “It is our continuing core mission to work with our Federal law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.”

“This case illustrates the importance of having effective internal controls that detect and mitigate fraud risks,” said State Examiner Paul Joyce on behalf of the State Board of Accounts. “Whether it involves a governmental unit or a nonprofit administering public funds, we take fraud and misappropriation cases seriously. These cases are also good illustrations of the importance of our collaboration with law enforcement and prosecutors to hold these individuals accountable for violating the public trust.”

“A violation of public trust deserves consequence,” stated Paul Dvorak, Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. “Mrs. TenBarge abused this trust by using public funds for personal use. The collaborative effort between the Evansville Police Department and federal agencies resulting in Mrs. TenBarge’s arrest serves as a reminder that breach of public trust and theft will be prosecuted.”

According to Assistant United States Attorney Kyle Sawa, who is prosecuting this case for the government, TenBarge faces up to 10 years for each count if convicted.

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3.

Indianapolis - United States Attorney Josh Minkler announced today that Elijah Vines, 27, was convicted on January 28, 2019 following a trial by jury for charges involving the sex trafficking of a minor child, transportation of that child across state lines for the purpose of trafficking her, as well as involvement in an organization that promoted the prostitution of other women. Vines is a lifetime resident of Indianapolis, Indiana.

“Vines coerced a vulnerable minor child into performing sex acts for money. In short, he profited through the exploitation of a child,” said United States Attorney Minkler. “Holding this predator and others like him responsible took stalwart determination and cooperation of federal, state and local law enforcement. But it also involved community citizens standing up and proactively holding the line on behalf of our children. We cannot do it alone, and this case demonstrates again the resolve and fortitude of American citizens.”

In April 2018, the Justice Department seized Backpage.com and shutdown the website, which had become well known to law enforcement as a website that advertised commercial sex.

According to the criminal complaint, Elijah Vines trafficked Minor Victim 1 in Indianapolis motels in September 2016 after transporting her from Ohio to Indiana. Evidence at trial revealed that Vines took suggestive photographs of the child in clothing that he purchased for her. Vines used his account on Backpage.com to post advertisements for the child, offering her for sale. Vines’s iCloud account showed the emailed responses by a number of men who sought to have sexual contact with the child in exchange for money.

The case came to the attention of law enforcement when the child was recovered on October 6, 2016 and treated at Riley Hospital for Children. This case was a joint investigation involving the Indianapolis Metropolitan Police Department’s Vice and Human Trafficking Unit as well as the FBI. The Indiana State Police provided computer forensics assistance, and Dr. Tara Harris of Riley Hospital for Children testified as an expert in Child Abuse Pediatrics.

“Human Trafficking is about money, plain and simple. Mr. Vines preyed upon a vulnerable child and used her as a commodity to fulfill his own greed. It is one of our fundamental responsibilities to protect the most vulnerable in our society and we are pleased that justice was served for this victim,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI is proud of the work our agents and our law enforcement partners conduct each and every day to protect the children of our communities.”

“Keeping Indianapolis residents safe means building strong connections in our neighborhoods and removing the most dangerous offenders from our community. And that’s exactly what the men and women of IMPD who serve our city each day remain focused on,” said IMPD Chief Bryan Roach. “When our resources are coordinated along with our federal, state, and local law enforcement partners through collaborative efforts like this investigation, the Indianapolis community benefits.”

“Sex trafficking continues to be a crime in our community, often victimizing young people lured into a dangerous life under someone else’s control. The intentional and vigorous prosecution of traffickers in our state and federal courts is intended to send a clear message that we will not tolerate this crime,” Marion County Prosecutor Terry Curry added. “Increasing education and public awareness are critical components in fulfilling our shared commitment to restore safety for sex trafficking victims and seek justice on their behalf.”

According to Assistant United States Attorneys Kristina M. Korobov and Lawrence Hilton, who prosecuted this case for the government, Vines faces up to a lifetime of imprisonment.

                             In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section

Indianapolis - United States Attorney Josh Minkler announced today the conviction and sentencing of a former swim coach with Carmel High School and Carmel Swim Club, John Goelz, age 30, to 200 months in federal prison after his admission of guilt to charges that he sexually exploited one of his student-athletes.

 “Today’s sentence sends a strong message to those whom we put trust in to supervise and coach our children, that this behavior is illegal and those who take advantage of our children will face real consequences,” said Minkler. “Protecting our youth from sexual predators will always remain a top priority of this office.”

Goelz exploited his position of trust and authority with one of his student-athletes, a minor, for his own sexual gratification. From at least September 2017 through June 30, 2018, Goelz first built the victim’s trust as her coach and confidant, and then began enticing the victim to engage in sexual acts with him. During that time period, Goelz contacted the victim via text messages and other messaging applications that concealed the conversations to arrange sexual encounters at locations such as Goelz’s residence, community parks, and motels. 

On June 30, 2018, Goelz used his cellular telephone to take videos of the victim engaging in sexual activity with him at a motel room in Anderson, Indiana. Two video files, along with multiple images, were recovered by federal investigators on Goelz’s cellular telephone after the execution of a search warrant, depicting the victim engaging in oral sex with Goelz. Computer evidence showed that the video files were filmed with Goelz’s phone.

This case was investigated by the U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and the Hamilton County Metro Child Exploitation Task Force.

 “This is yet another example of a selfish and criminal act on the part of an individual who took advantage of a position of authority over a child,” said Lieutenant Cameron Ellison, Hamilton County Metro Child Exploitation Task Force. “Cases involving adults in such positions have become far too common in our society. Each member of our community should take note of these cases, commit to remaining off the sidelines, and communicate with law enforcement when these types of abuses are suspected. It was a community tip that led to the investigation, arrest and prosecution in this case. Law enforcement and prosecutorial authorities, at all levels, will continue to work together when such allegations are made. We will work together, with laser focus, to first protect our children, then to investigate these crimes and separate the individuals responsible from our children and society.”

“Sexual exploitation is one of the most depraved crimes committed against humanity and this case is especially disturbing given Goelz’s position of trust,” said Special Agent in Charge James M. Gibbons, Chicago HSI. “This sentence serves as a reminder that HSI is committed to collaborating with its community partners to bring those who exploit children to justice.”

According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Goelz must also serve ten years of supervised release following his sentence.

                  In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit or harm children and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1 and 4.2

Indianapolis - On behalf of the United States Attorney's Office, I want to thank the nearly 800,000 employees in federal service who persevered throughout the recent government shut down. I particularly appreciate the dedication of the professionals in my office and the DOJ as well as my federal partners at FBI, DEA, ATF, Marshal Service, Homeland Security Investigations, ICE, IRS-Criminal Investigations, Secret Service, the Bureau of Prisons, and many others in law enforcement. 

The responsibility of protecting our country from threats foreign and domestic is a privilege that never ceases and your willingness to continue working, often putting your personal safety at risk, to protect and serve our public is a remarkable gesture. Very few household budgets can withstand the delay of two bi-weekly paychecks, but I know all of you did just that.

I am truly proud of your dedication and loyalty to the American public. It is an extraordinary blessing to be able to call you my colleagues and extend to you my gratitude.

Indianapolis – Josh J. Minkler, United States Attorney, announces the upcoming third roundtable gathering of the Project Safe Neighborhoods (PSN) Outreach Initiative.
 
When:             February 20, 2019 at 2:00 p.m.          
Where:            Office of the United States Attorney, Southern District of Indiana 

                      10 West Market Street, Suite 2100, Indianapolis, IN 46204

      The United States Attorney’s Office, Southern District of Indiana (USAO, SDIN) is committed to proactive steps intended to foster safe neighborhoods and create opportunities to continue implementation of crime prevention strategies.

Representatives and leaders from private industry, the faith based community, the criminal justice sector, and grassroots community associations, and interested parties, are cordially invited to attend the third roundtable meeting, during which time conversations and action steps geared toward the reduction of gun violence in the district will be discussed. It is the stated PSN goal that our citizens enjoy safe neighborhoods and economic empowerment by engaging in both prevention activities and enforcement to hold gun-toting felons responsible for federal violations of law. Illustratively, the USAO, SDIN has prosecuted in excess of 195 cases alleging felons in possession of firearms and/or engaging in violent acts in 2018.

At the November PSN meeting, Jennifer Cameron, mother of JeShon Cameron, shared the story about how gun violence tragically affected her family in July 2018 by stealing the life of young JeShon far before his time. This November meeting was hosted by David McGuire, Principal of Tindley Summit, an extension of the Charles A. Tindley Accelerated School System, who shared stories and action steps educators are engaged in under his leadership.    

United States Attorney Minkler thanks all of the law enforcement officers, citizens, community leaders, and activists who help foster this program.
 

Terre Haute, Indiana - United States Attorney Josh J. Minkler, announced today that Justin A. Vangilder, 29, of West Terre Haute, was recently sentenced in United States District Court for the Southern District of Indiana. On November 29, 2018, United States District Court Judge William T. Lawrence sentenced Vangilder to forty-two (42) months imprisonment following his pleas of guilty to one count of unlawful possession of a firearm by a convicted felon and one count of possession of an unregistered destructive device.

“The Office of the United States Attorney has devoted significant resources to combat the scourge of illegal firearms trafficking,” said Josh J. Minkler. “This prosecution is an example of judicious partnerships between federal and local law enforcement officers to stop criminal activity at its inception.”

This case stems from an investigation by the Federal Bureau of Investigation (FBI), West Terre Haute Police Department (WTHPD), and other state and local law enforcement agencies. On April 11, 2017, officers with the WTHPD received information that Vangilder, a convicted felon, was in possession of a firearm. When officers responded to Vangilder’s residence they met with his father who allowed WTHPD officers into the residence to recover the firearm, a Citadel 1911, .45-caliber handgun, with two loaded magazines. Upon further investigation, WTHPD officers discovered what appeared to be a bomb making lab in the defendant’s bedroom. WTHPD evacuated the home and called the bomb squad, who responded to the scene along with the FBI. Once the residence was declared safe, investigators found numerous components typically used to assemble destructive devices in Vangilder’s bedroom including a soldering iron, an assembled bomb-like device, timers, fireworks, unknown powders, PVC pipe, and three books detailing how to construct explosive devices. 

During the course of the hearing on November 18, 2018, the Court heard testimony that the FBI searched Vangilder’s electronic devices and located several video files in which Vangilder can be seen testing electric and electronic detonation switches for destructive devices, including one switch linked to a key fob and another linked to an egg timer. In the videos, which were recorded in Vangilder’s bedroom, Vangilder can be seen igniting flash paper and various powders by operation of his homemade detonation switches.

According to Assistant United States Attorney Matthew J. Rinka, who prosecuted the case for the government, Vangilder was convicted in 2014 of possession of an unregistered destructive device in federal court in Illinois and was on federal supervised release at the time of his arrest in this case. In addition to pleading guilty to the charges in this case, Vangilder also pled guilty to violating the terms of his federal supervised release and Judge Lawrence sentenced him to a consecutive 10 month term of imprisonment for that offense. 

This arrest enforces the Department of Justice’s Strategic goals of targeting the District’s most violent geographic areas for the adoption of reactive federal drug and firearm prosecutions. Priority will be given to defendants who can be charged by criminal complaint, detained, indicted, convicted, and sentenced to significant periods of incarceration. This expeditious approach should result in more firearm and drug prosecutions in the District. See United States Attorney’s Office, Southern District of Indiana Strategic Plan, Section 2.2

Indianapolis - Violent crime in Indianapolis (Marion County), Indiana has risen to astronomical levels. In the third quarter of 2018, there were 118 homicides and 331 non-fatal shootings in Marion County alone. The United States Attorney’s Office for the Southern District of Indiana (USAO) has faced this challenge head-on, pouring resources into addressing this crisis. Josh J. Minkler, the United States Attorney, collaborated with each of the six (6) Indianapolis Metropolitan Police Department (IMPD) districts and federal agencies including, but not limited to, the Bureau of Alcohol Tobacco Firearms & Explosives (ATF) to utilize intelligence-led policing and mandatory minimum sentences as both a shield and sword.

One effective method of confronting violent crime is prevention. The USAO is committed to ensuring the public is well-informed about the soaring crime rates and the Department’s intentional and collaborative response. In order to better disseminate this information, the USAO has partnered with Anderson University’s (AU) Department of Communication & Design Arts to expand the information ecosystem through internships and work-study programs.

“Reducing violent crime is a top priority for the Southern District of Indiana,” said Minkler. “Due to [Anderson] President John Pistole’s longstanding ties to government and the high regard in which he is held, a partnership with Anderson University made complete sense, and is beneficial to both parties. In bringing these interns into our office, we are enabling bright young minds to present us with new and exciting ways to reach our citizens, and in turn, educate our constituencies about ways to prevent violent crime.”

President Pistole served as Administrator for the United States Transportation Security Administration and Deputy Director of the Federal Bureau of Investigation before serving as the fifth President of Anderson University. He shared, “Anderson University offers several opportunities to equip students with real-world experience, and partners with a wide variety of employers, like the United States Attorney's Office for the Southern District of Indiana. We value the distinctive, compelling, and relevant skills that students learn from programs like this to prepare a successful career of faith and service."

In addition to receiving academic credit, the AU student interns are able to gain invaluable real-world experience, working side-by-side with public information officers in the USAO, assisting with:

• Communications with national and local news media, gathering news clips, assisting with interviews and press conferences, editing and issuing new releases on a variety of topics.
• Providing research assistance and contributing to other communications projects.
• Researching, drafting, editing and evaluating social media and web communications projects on a variety of topics and providing other duties as assigned.

 

The USAO remains committed to curbing the violent crime emergency plaguing Marion County. In addition to making use of its many federal resources, the USAO is excited to continue partnering with Anderson University and its students to produce a constituency that is both aware and informed of happenings in the Department in order to prevent future violent crime and protect the District’s citizens.

Indianapolis – United States Attorney Josh J. Minkler announced that JOACHIM VAN BUREN, 50, of Fishers, Indiana, was charged with two counts of Possession with Intent to Distribute Controlled Substances, and one count Prohibited Person (Felon) in Possession of a Firearm.

Van Buren has a prior second degree felony, in Hidalgo County, Texas, that occurred on or about May 5, 2010, for Possession of Marijuana of 2,000 pounds or less but more than 50 pounds. Among other items, law enforcement officers confiscated: 50 grams or more of methamphetamine, 100 grams or more of heroin, a Schedule I, narcotic controlled substance, and approximately $31,115.00 in cash from Van Buren’s home in Fishers along with one (1) Springfield Armory 45. Caliber semi-automatic handgun, one (1) Colt.25 caliber semi-automatic handgun, one (1) Ruger .45 Caliber semi-automatic handgun, and ammunition.

“The government is intentionally focusing its resources on the opioid epidemic and holding traffickers accountable,” said United States Attorney Josh J. Minkler. “This case represents collaborative enforcement efforts in this regard and sends an important message to the community that federal agents are working in partnership with local law enforcement to bring violators to justice.”

According to Assistant United States Attorney Lindsay Karwoski, who is prosecuting the case for the government, the defendant faces a possible sentence of 10 years to life imprisonment.

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

This criminal charge reinforces the United States Department of Justice Strategic Goals Intended To Address Indiana’s Heroin and Opioid Crisis through Federal Prosecution of more Heroin and Opioid Traffickers. See USAO-SDIN Strategic Plan, Section 3.3.

Indianapolis man robbed four retail stores at gunpoint in 2017  

PRESS RELEASE

INDIANAPOLIS - United States Attorney Josh J. Minkler announced today the conviction of Kevin Ingram, 28, following a federal criminal trial. The jury found Ingram guilty of all charges, which stemmed from four robberies of retail stores in Indianapolis in October 2017, and using a firearm in each of the four robberies. The trial was held before U.S. District Court Judge Tanya Walton Pratt.

“Hoosiers should feel safe in their daily lives and not have to fear violence when they go to the store or the salon,” said Minkler. “Those who choose to terrorize our community with violence, particularly those who use firearms, will feel the full weight of federal law enforcement brought to bear on their crimes.”

In mid-October 2017, Ingram robbed four Indianapolis stores at gunpoint in an eight-day spree. Two of the stores were beauty salons, where Ingram stuck a semi-automatic pistol in the faces and backs of store workers and customers. He demanded cash and threatened to shoot if they did not comply. The other two stores Ingram robbed were larger, one being a beauty supply shop and the other a dollar store. Ingram robbed both stores in the middle of the afternoon, with the stores full of patrons. In each case, he pretended to purchase an item and then leaned over the counter, drew his pistol, demanded money, and started counting down before threatening to shoot. In all, he stole approximately $3,000 in cash and threatened at least eight victims at gunpoint, all of whom were female.

Days after the fourth robbery, Ingram saw his face on the news from store security camera footage and fled to Houston, Texas. There, he is alleged to have committed at least three more robberies of individuals at knifepoint. He was apprehended in Indianapolis several weeks later. 

At trial, the jury heard testimony from each of the women Ingram terrorized at gunpoint.  In addition, the jury saw security video footage from each store Ingram robbed, which showed Ingram pointing the pistol and wearing distinct clothing that was also found on his Facebook page.

The case was investigated by the FBI and Indianapolis Metropolitan Police Department.

“Mr. Ingram traumatized employees who were simply trying to do their jobs and customers who never thought someone would try to harm them while they were going about their daily lives," said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. "This conviction is a testament to the dedication of our agents and our partners whose hard work on this ensured this individual is no longer a threat to the community.”

“The collaboration required to finalize a case of this magnitude is indicative of the dedication and commitment of our local law enforcement and the trust forged with members of our community”, said IMPD Chief Bryan Roach. “Our collective law enforcement efforts (local, state, and federal) will continue to focus on those individuals who perpetrate violence in our community for a better Indianapolis and Marion County for all.”

According to Assistant U.S. Attorneys Nick Linder and Lawrence Hilton, who prosecuted the case for the government, Ingram faces a minimum of 82 years of imprisonment. His sentencing date has not yet been set.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3.

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PRESS RELEASE

INDIANAPOLIS–Disability rights advocates met recently to learn about new resources and to share information during the second Disability Rights Roundtable convened by the United States Attorney’s Office for the Southern District of Indiana. The U.S. Attorney’s office convened the first meeting of this group in March 2018, during Disability Awareness Month. Monday’s event was held at the Indiana Disability Rights offices at 4701 North Keystone Avenue, Indianapolis.  The collaborative effort included more than 20 participants from advocacy organizations, state and local government and service providers.

Vicki Johnson of AWS Foundation, a not-for-profit entity in support of the disability community presented Indiana Disability Resource Finder, a new system navigator that will provide access to resources for people with disabilities and their families as well as service providers. FINDER, is designed to be inclusive and accessible, and should be available for users in the spring of 2019.

Melissa Keyes, Legal Director for Indiana Disability Rights, talked about her organization’s efforts in supported decision making and the possibility of legislation on this issue during the next legislative session. Kim Dodson, Executive Director of the Arc of Indiana, reviewed the report and recommendations prepared by the Task Force for Assessment of Services and Supports for People with Intellectual and Developmental Disabilities. The task force, chaired by Lt. Gov. Suzanne Crouch, developed a comprehensive plan to implement community-based services to people with intellectual and other developmental disabilities.

Joel Boehner, Executive Director of IN*SOURCE, shared his group’s new public service announcement, which can be found at https://youtu.be/UWBg8bA7wYE. Tammy Themel, Executive Director of Access Ability, invited participants to contribute to upcoming focus groups about consumer change, to be sponsored by her organization in upcoming months.

The Disability Rights Roundtable plans to meet again in February 2019.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This event demonstrates the Office’s firm commitment to the enforcement of civil rights through outreach and communication with local groups, organizations and law enforcement officials. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 7.3

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PRESS RELEASE

Indianapolis-United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced in federal court to 126 months (over 10 years) for his role in a 2015 shooting near the federal courthouse. Marcus Fennell, 26, was sentenced before U.S. District Judge Tanya Walton Pratt after pleading guilty to possession with intent to distribute marijuana and discharging a firearm during and in relation to a drug trafficking offense.   

“Those who violate the safety and sanctity of our city and citizens by using gun violence, will be held strictly accountable,” said Minkler. “Helping to maintain safety and reducing violent crime remains the top priority of my office.”

During the morning rush hour on October 8, 2015, Fennell was dealing marijuana near the federal courthouse in the first block of East Ohio Street. He fired two shots from a 9mm handgun and ran north to Indiana War Memorial Park where IMPD officers apprehended him. Once apprehended, officers found a handgun in Fennell’s pants pocket along with 110 bindles of marijuana. During the arrest, Fennell told officers he “wasn’t trying to kill anybody…guys were messing with me.” The entire incident was captured on video from court security cameras.

According to Assistant United States Attorney Jeffrey Preston, who prosecuted this case for the government, Fennell must also serve five years of supervised release following his sentence.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3.

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PRESS RELEASE

Indianapolis – Josh J. Minkler, the United States Attorney, announced today that ALFREDO DIMAS-LEYVA, a Mexican citizen illegally in this country, has been indicted by a Federal Grand Jury for multiple crimes, including attempting to send a rifle scope to Mexico.

According to court documents, DIMAS-LEYVA placed false information on a United States Customs Declaration on August 20, 2018 when he attempted to mail a Field & Stream 4x32 telescopic sight to an individual in Mexico. Such items are prohibited for export to Mexico, due to the state of violence in that country.

DIMAS-LEYVA was encountered and arrested by the Department of Homeland Security (DHS) at his place of employment in Brownsburg. During his arrest, DHS Agents discovered that DIMAS-LEYVA is a convicted felon who had been previously deported from this country and was using multiple false identity documents to illegally work and stay in this country.

An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute illegal immigration cases, to prosecute our most violent criminals and focus local prosecutions on illegal gun possession.  See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 1.8, 2.2 and 2.9.

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 Charged with Conspiracy to Commit Racketeer Influenced and Corrupt Organization (RICO)

PRESS RELEASE

Indianapolis – United States Attorney Josh J. Minkler announced today that four of the lead defendants in a racketing scheme have been sentenced in federal court by U.S. District Judge William T. Lawrence.

Mohamed Noshi Mahmoud, a/k/a Noshi 41, Fishers, 70 months’ imprisonment

Mahdi Khelifi, 26, Indianapolis, 75 months’ imprisonment

Hamzi Dridi, a/k/a Alex, 28, Indianapolis, 72 months’ imprisonment

Issa Kayyali, 30, Indianapolis, 35 months’ imprisonment

“Elite Imports was used as a sanctuary to perpetrate three separate, but interrelated fraud schemes causing financial and untold loss to corporate America and individual victims,” said Minkler. “These defendants abused processes in place that would allow citizens with largely subprime credit to get back on their feet through legitimate vehicle sales.”

Mohamed Noshi Mahmoud (Noshi) was the principal leader and manager of Elite Enterprise which operated two used car dealerships and several “shell” companies in Indianapolis. Noshi directed other members and associates of the enterprise to engage in activity that assisted him in carrying out unlawful acts. Khelifi was a managing sales associate involved in the day-to-day operations of the dealership, Kayyali was a sales associate and Dridi was the service manager and mechanic in charge of the chop shop the dealership used to disassemble vehicles that were oftentimes reported stolen.

According to court documents, Noshi and the other Elite managers engaged in three separate but interlocking fraud schemes on behalf of the business enterprise. The first was to procure fraudulent documents and submit them to lending and financial institutions to underwrite the purchase of cars, trucks and motorcycles on behalf of Elite’s customers. The documents included social security numbers, dates of birth and paystubs from the shell companies Elite employees or associates created.

The second scheme was a conspiracy to defraud insurance carriers by submitting false claims of stolen vehicles. The defendants allegedly claimed that certain vehicles were damaged or stolen, thereby causing the insurance carriers to release claim money to the policy and lien holder benefitting Elite. In many cases stolen vehicles and/or parts were located in the chop shop storage unit leased by Noshi.

The third scheme involved theft from specialty financing companies who gave Elite short-term financing and lines of credit for vehicles in inventory. These specialty financing companies were defrauded through a series of steps including false representations made by Elite management. 

The case was investigated through a collaborative partnership between federal, state, and local officials. The investigation was led by the Federal Bureau of Investigation, the United States Postal Inspection Service, U.S. Social Security, OIG, the Lawrence Police Department (Indiana), and the Indianapolis Metropolitan Police Department, with assistance provided by the Indiana Secretary of State, Auto Division and the Indiana Attorney General Consumer Fraud Division.

“These sentences send a very clear message that illegal business practices won’t be tolerated,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will not look the other way when individuals attempt to defraud the hard working residents of Indiana.”

The case was prosecuted by Assistant United States Attorneys Cynthia J. Ridgeway and Kristina M. Korobov.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit large-scale fraud schemes that exploit vulnerable victims. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1

 

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Indianapolis - United States Attorney Josh Minkler and Trevor Velinor, ATF Special Agent in Charge of the ATF Columbus Field Division today announced the results of an anti-violence initiative called Project Safe Neighborhoods (PSN). The goal of PSN, working together with federal, state and local law enforcement is to reduce the number of criminal homicides and non-fatal shootings in the Evansville area.

Focusing our law enforcement resources on the most violent in our society will reduce crime, save lives and help make our neighborhoods safer,” said Minkler. “Those who choose to terrorize Southwestern Indiana with gun violence should know ahead of time, federal law enforcement is watching and will respond with federal resources.”

The United States Attorney Evansville Division team led by Deputy Chief Todd Shellenbarger has demonstrated steeled determination to target the area’s most violent and habitual gun-toting felons for federal prosecution. This renewed focus has yielded over 33 federal firearms cases in 2018, 22 of which were based in the Evansville PSN district. These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Evansville Police Department, the Vanderburgh County Sheriff’s Department, the Indiana State Police, and the Vanderburgh County Prosecutor’s Office.

In support of the PSN program, and to assist and strengthen the efforts of local enforcement to reduce violent crime in Evansville, the ATF sent a surge of resources to Evansville between July 24 and September 24, 2018. During this time period, five additional ATF agents and Task Force Officers were assigned to the Evansville ATF office. These additional agents and officers teamed up with Evansville police officers to aggressively pursue firearms cases in Evansville. The surge resulted in the arrest and prosecution of numerous suspects for federal and state charges.   

 

Federal defendants facing firearm and drug-related charges as a result of the surge include:

Charles C. Baughn, 35, Vincennes, Indiana

Gary Bentley Jr., 51, Evansville, Indiana

Joseph Byers Jr., 35, Boonville, Indiana

Jamal Christopher, 34, Norcross, GA

Kurtis A. Evans, 42, Vincennes, Indiana

Austin G. Greene, 19, Bedford, Indiana

Justin Helsley, 27, Newburgh, Indiana

Samuel King, 35, Evansville, Indiana

Terry W. Morris II, 19, Cloverdale, Indiana

Barry Scott, a/k/a Barron Scott, 58, Vincennes, Indiana

Marvin Robinson, 46, Jeffersonville, Indiana

William K. Thompson 31, Evansville, Indiana

 

“These arrests represent the culmination of countless hours of investigative work with our partners at the Evansville Police Department, the Vanderburgh County Sheriff’s Office, the Indiana State Police, the United States Attorney’s Office, and the Vanderburgh County Prosecutor’s Office,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “We have forged and strengthened our cooperative efforts with the goal of removing violent individuals from the streets and returning our community to its rightful owners, those living, working, and raising families there. These arrests represent just the first step in that continuing work.”

“We take pride in having great relationships with other law enforcement agencies, including our Federal Partners. When we all work together, it makes our communities much safer. This latest effort only reinforces what can be accomplished when we all work together.”

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime using firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3.

Assistant United States Attorney on call for Election Day problems

 

PRESS RELEASE

INDIANAPOLIS-United States Attorney Josh Minkler announced today that Assistant United States Attorney (AUSA) Tiffany Preston will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Preston has been appointed to serve as the District Election Officer (DEO) for the Southern District of Indiana, and in that capacity is responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

United States Attorney Minkler said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

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

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Minkler stated that AUSA/DEO Preston will be on duty in this District while the polls are open. She can be reached by the public at the following telephone numbers: (317) 226-6333.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (317) 595-4000.

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

United States Attorney Minkler said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Civil Rights Division.”

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Robbery team terrorized stores in Indianapolis and Ohio.

PRESS RELEASE

Indianapolis– United States Attorney Josh J. Minkler announced today a jury in federal court has found two Indianapolis men guilty for their role in a string of cell phone store robberies. Kashawn Morrow, 28, and Christopher Davis, 24, were found guilty on three counts of robbery, three counts of using a firearm in relation to a crime, two counts of conspiracy, and transporting a firearm across state line to commit a felony. The trial was held before U. S. District Judge Richard L. Young.  

“This group used violence to terrorize retail store employees around the Midwest,” said Minkler. “Putting the safety of shoppers, employees and law enforcement in jeopardy will never be tolerated. They will now be held accountable for their actions.”

In February and March of 2017, Morrow and Davis perpetrated a crime spree through Indianapolis and Ohio which included the armed robberies of cell phone stores on East Thompson Rd., South East St., Pendleton Way in Indianapolis, and one in Troy, Ohio. Morrow and Davis used guns and terrorized their victims during these robberies, threatening their lives if they did not comply. With the FBI following them after their last robbery, a force of law enforcement including the FBI, ISP, IMPD, and most sheriff’s offices from Richmond to Spiceland, intercepted the men and arrested them on March 30, 2017. They were still in possession of the assault rifle used in the robbery, and the over 84 cell phones and accessories taken.   

According to Assistant United States Attorneys Bradley Shepard and Cindy Cho, who prosecuted this case for the government, both defendants face a sentence of 55years to life. No sentencing date has been set by the court.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3

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15 individuals charged with over $1 million in losses    

PRESS RELEASE

Indianapolis-United States Attorney Josh Minkler announced today a large-scale initiative bringing federal and state corruption-related charges against 15 individuals working in public service and governmental positions. “Operation Public Accountability” partnered the State Board of Accounts with the FBI, Indiana State Police, county sheriffs, the U.S. Attorney’s Office, and state and local prosecutors filing charges against local fire department officials, school employees and various municipal and county employees from around the state.

“Public officials work for the people not the other way around,” said Minkler. “When the trust we give them is shattered and public officials line their pockets with taxpayer dollars, they should expect the scrutiny of state and federal law enforcement. All citizens deserve better from their public officials and this office intends to hold them accountable.”

The State Board of Accounts is responsible for ensuring financial accountability of state and local governments in their handling and reporting of public funds. This is done by performing periodic financial audits and conducting special investigations based on concerns discovered during regular audits, referrals from law enforcement agencies, reports of misappropriation from local officials, and credible complaints from citizens. In each of the cases highlighted today, the State Board of Accounts collaborated with law enforcement and prosecutors to perform audit procedures to verify misappropriation concerns and assist in gathering evidence to support prosecutions.

Federal cases include:

Kellie Cline, 35, Greenwood, served as the Extra-Curricular Activity (ECA) Treasurer at Greenwood Middle School. She is alleged to have stolen approximately $50,000 from the school’s extra-curricular account.

Sami Dillon, 38, Crawfordsville, served as the Clerk-Treasurer of Cayuga, in Vermillion County and is alleged to have stolen approximately $44,000 by not depositing utility receipts.

Clint Madden, 51, Columbus, served as the Wayne Township Trustee and the Jonesville Volunteer Rural Fire Department Treasurer, in Bartholomew County. He is alleged to have misappropriated over $100,000 from the township and the fire department.

Mathew Mathis, 47, Columbus, served as the Treasurer of the Hope Volunteer Fire Department in Bartholomew County and is alleged to have stolen over $48,000 from the fire department.

Norman Burgess, 44, Danville, served as the Treasurer of the Wayne Township Fire Department in Hamilton County and is alleged to have stolen approximately $140,000 from the fire department.  

State cases include:

 Angela White, 44, Indianapolis, served as the ECA Treasurer for Robey Elementary School in Wayne Township, in Marion County. She is alleged to have stolen approximately $10,000 from the school. Charges are pending with the Marion County Prosecutors Office.

 Rachel Bentz, 44, Portland, served as the Jay County Sheriff’s Department jail matron. She is alleged to have stolen approximately $9,000 by not depositing inmate trustee receipts. This case is pending with the Jay County Prosecutor’s Office.

 Dallas Davis, 56, Russellville, served as the Clerk-Treasurer for the Town of Russellville, and is alleged to have stolen approximately $7,600 by not properly depositing utility receipts. This case is pending with the Putnam County Prosecutor’s Office.

David Buzzard, 50, Columbus, served as the trustee for the Rock Creek Township Trustee in Bartholomew County. He is alleged to have overpaid himself and his spouse approximately $27,000. This case is pending in Bartholomew County with a special prosecutor.

Jacqueline Fitzgerald, 54, and Monica Durrett, 56, worked at the Indianapolis Local Public Bond Bank and are alleged to have stolen approximately $400,000. This case is pending with the Marion County Prosecutor’s Office.

Nicole DeMunck, 35, Michigan City, served as the AK Smith Center Treasurer in the Michigan City School System. She is alleged to have stolen approximately $13,000. This case is pending with the LaPorte County Prosecutor’s Office.

Nichole Lowry, 47, Kewanna, served as the Pulaski County EMS Director. She is alleged to have stolen over $12,000 in training funds. This case is pending with the Pulaski County Prosecutor’s Office.

Cheryl Pruitt 50, Gary, served as the former Gary Schools Superintendent, is alleged to have received a $1,256.75 “reimbursement” for funds that she never spent.

Donald G. Minnick, 64, Gosport, served as an Owen County Commissioner. He improperly sold a vehicle to the county with a loss of $7500. He was found guilty in Owen County.

In total, the State Board of Accounts is civilly charging the individuals listed above for repayment of more than $1 million based on the misappropriations identified in these cases.

“These cases address core local government functions that impact the quality of life for residents of these communities - from public safety to after school activities to utility services – and erode public confidence in those trusted with public funds,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “These charges also demonstrate the strength of collaboration with our federal, state and local partners to mitigate the problem of corrupt officials across the state and the impact their greed has on their communities.”

“In recent years, the Board of Accounts has emphasized the importance of effective internal controls that detect and mitigate fraud risks. The vast majority of local units of government have enhanced their procedures to incorporate stronger internal controls,” said Paul Joyce, State Examiner. “Some officials and employees, however, still take advantage of system gaps and succumb to the temptation to use public funds for personal gain. We take those fraud cases seriously. These cases are good illustrations of the importance of our collaboration with law enforcement and prosecutors to hold these individuals accountable for violating the public trust.”

Indiana State Police Supt. Doug Carter said, “To say the least, it’s disheartening when public officials violate the public trust, which is why it is important for the public to know that the FBI, along with the State Board of Accounts and state police detectives worked together building prosecutable cases to hold these public officials accountable for their alleged criminal acts.” Carter concluded, “We appreciate the aggressive manner United States Attorney Minkler has moved forward to prosecute these cases and help restore public faith in their local government officials.”

Assistant United States Attorney Tiffany J. Preston is prosecuting all of the federal cases.

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

 In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3

 

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The Attorney General announces the anniversary of the launch of PSN 2.0

PRESS RELEASE

Indianapolis–Josh J. Minkler, the United States Attorney, announced the Attorney General’s renewed commitment and dedication to stemming the gun violence epidemic through the launch of Project Safe Neighborhoods 2.0 (PSN).

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the more effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face.  Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”

In the Southern District of Indiana, the Justice Department’s commitment has yielded strong and continued partnerships across law enforcement and newly cultivated relationships with non-traditional partners aimed at recognizing the district’s violent crime challenges and taking action steps to reduce the number of non-fatal shooting victims.

United States Attorney Minkler and a team of criminal Assistant United States Attorneys led by Deputy Chiefs of the Criminal Division Barry Glickman and Todd Shellenbarger have demonstrated steeled determination to target the district’s most violent, habitual gun-toting felons for federal prosecution. This renewed focus has yielded 180 federal PSN cases investigated in large part by the Bureau of Alcohol Tobacco and Firearms, Indianapolis Metropolitan Police Department, Marion County Sheriff’s Department, Evansville Police Department, and the Indiana State Police. Recently, the Federal Bureau of Investigation created a new group comprised of one special agent and three task force officers to complement the district’s PSN work and augment resources devoted to gun violence victims and important PSN investigations.

In addition to increased number of criminal prosecutions, the Department awarded in excess of $2 million in grant funds to agencies and organizations within the district whose focus is aligned with PSN:

Date

Recipient

Amount

Grant Focus

09/24/18

Indianapolis Metropolitan Police Department

$798,000

Crime Gun Intelligence Center

10/1/18

City of Indianapolis

Mayor Joseph Hogsett

$456,891

PSN

10/1/18

John H. Boner Community Center

CEO James Taylor

$999,913

Community-Based Crime Reduction Program (CBCR)

10/2/18

Indiana Criminal Justice Institute  Executive Director David Murtaugh

$421,952

PSN

10/4/18

Marion County Prosecutor’s Office

$277,968

National Integrated Ballistics Information Network Focus

United States Attorney Minkler’s efforts including conceptualizing a PSN Strategic Plan and a non-traditional outreach portfolio have been recognized nationally and locally, culminating in a national nomination of the district’s PSN Task Force efforts.

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INDIANAPOLIS - United States Attorney Josh Minkler is pleased to announce a $1 million U.S. Department of Justice grant issued through the Office of Justice Programs, Bureau of Justice Assistance to the Indiana State Department of Health. The grant focus is combatting school violence through School Violence Prevention and Mental Health Training with state and local governments. 

The grant goals include:

1. Training school personnel and educating students to prevent student violence,
2. The development and operation of an anonymous reporting system for school threats including mobile telephone applications, hotlines, and websites, and
3. The development and operation of school threat assessment and crisis intervention teams that may include coordination with law enforcement agencies and school personnel as well as specialized training for school officials help to intervene and respond to individuals with mental health issues that could impact school safety.

            Justice Department funding for the program is intended to support the improvement of school security by providing students and teachers with the tools they need to recognize, respond quickly to violent attacks, and mitigate risk exposure.  Moreover, the goal is to prevent acts of violence.

According to U.S. Attorney Minkler, “We are currently experiencing a violent crime wave of epic proportions, and our schools are not immune. The Justice Department is pleased to partner with non-traditional and traditional partners like the Indiana State Department of Health, willing to illuminate the importance of school safety and reduce school violence through prevention and mental health training.”

As the Attorney General recognized, the violent crime rate in Indianapolis is more than 250% the national average and has been steadily increasing.  Experts in mental health, violence prevention, public health, media studies, and law enforcement who gathered in February 2018 at the University of Pittsburgh, Center for Bioethics and Health Law, reported gun violence across the country to be “a public health problem . . . [and] a threat to every dimension of health . . .undermin[ing] physical, mental, and social well-being.”

“I’m grateful to the DOJ for this needed funding, which will allow Indiana to not only remain a national leader in school safety, but to address gaps and increase prevention efforts,” said Indiana State Health Commissioner Kris Box, M.D., FACOG. “We must continue to tackle the problem of school violence from all angles, whether it’s hardening our schools, investing resources in preparedness and training or enhancing our mental health services, in order to keep our students, teachers and administrators safe.”