Southern District of Indiana

Over $1 million collected at local retail outlets with only a fraction received by vets.

 

PRESS RELEASE

 

INDIANAPOLIS -Josh J. Minkler, Acting United States Attorney, announced today the sentence of an Indianapolis man for his role in stealing hundreds of thousands of dollars intended for use by local veterans. Scott M. Gruber 40, was sentenced to four years in federal prison by U.S. District Judge Sarah Evans Barker after being convicted of two counts of mail fraud and one count of structuring to evade reporting requirements.

“Our veterans have made enormous sacrifices to keep us all safe and to steal money intended for their use is unthinkable,” said Minkler. “Besides being illegal, these actions are unpatriotic and will not be tolerated.”

Gruber established two professional fundraising organizations, Independent Promotions and Reliant Event Management to solicit funds for local veteran’s charities. He hired individuals to falsely represent themselves as volunteers and often as veterans to solicit funds from patrons outside local retail outlets and Monument Circle. The solicitors were schooled to tell patrons that 100% of the proceeds went to charities that support veterans. In fact, very little of the money ever made it to the intended veterans.

Gruber and his associates traveled to universities and colleges, as far away as Florida to solicit. Gruber personally instructed his solicitors to falsely represent that they were college students competing for scholarships by soliciting for veteran’s charities. The solicitors would tell prospective contributors that they were volunteers and any amount collected would be matched as a scholarship to them. In reality, the solicitors were paid by Gruber, 40 % of each solicitor’s take.

From 2010 until 2012 Gruber and his associates collected over $550,000 for the Purple Hearts Veterans Foundation (PHVF) and $575,000 for Service Connected Disabled Veterans of America (SDVA). Only eight percent of the funds from PHVF ever made it to the veteran’s charity and less than one percent ($4500) of the money raised for SDVA made it to any veteran. In total, Gruber raised over $1,045,651, very little of which made it the various charities.

This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division, and the Indiana State Police.

According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, there were two sets of victims in the case; the contributors and the veterans the money was intended to support. Gruber must pay $365,750 in restitution, payable to the American Red Cross and serve three years of supervised release after his sentence at the U.S. Bureau of Prisons.

 

John “Jay” Carter sentenced for his role in major money laundering scheme involving drug money from local marijuana dealers

PRESS RELEASE

EVANSVILLE- Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a former member of the Evansville Redevelopment Commission for his role in a major drug-laundering scheme. John “Jay” Carter 49, was sentenced to four years in federal prison by U.S. District Judge Richard L. Young. Carter was convicted in October of last year on eight counts of money laundering, two counts of making false statements to federal agents and structuring a money transaction.

“The citizens of Evansville deserve better from their public officials,” said Minkler. “Mr. Carter used his position of authority to bypass the legal system and used dirty drug money to assist criminals and better himself.”

According to court documents and testimony, two Evansville-area residents, were involved in a large-scale drug trafficking operation, moving hundreds of pounds of marijuana to the tri-state area from Mexico and Texas. This activity generated large amounts of cash proceeds.

Carter assisted these men in efforts to launder their money by concealing its origin through real estate transfers, business deals, financial transactions and in at least one case, testified before the Evansville Public Safety Committee to support awarding a city contract that benefitted them.

Carter used $90,000 in drug proceeds to transfer ownership of a property on South Kentucky Avenue from one of the dealers, then transferred the property to himself. He used thousands of dollars in drug proceeds to purchase automobiles, a towing business and wreckers, later used for a City contract in Evansville. Carter also used money from drug transactions to purchase Jazzy Grooves Nightclub located on Main Street in Downtown Evansville.

This case was investigated by the Internal Revenue Service, the Evansville Police Department and the Drug Enforcement Administration.

“IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society,” said Special Agent in Charge James C. Lee. “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-CI helps maintain that public trust and ensure that everyone pays their fair share.”

According to Assistant United States Attorney Matthew Brookman, who prosecuted this case for the government, Carter must serve three years of supervised release after his sentence.

 

Evansville – Josh J. Minkler, Acting United States Attorney, announced today that David J. Nalley, 41 of Evansville, Indiana, was sentenced to 84 months (seven years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to two counts of robbery and violation of supervised release. This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and the Evansville Police Department.

“The reduction of violent crime remains one of the highest priorities in my office,” said Minkler. “Those who choose to disrupt our lives with violence will be held accountable.”

Immediately before sentencing, Nalley admitted that on March 21, 2013, he entered the Chuckles Convenience Store located on South Weinbach Avenue in Evansville, Indiana. He approached the cash register clerk and said “I am robbing you,” with one hand in a jacket pocket. The clerk surrendered the cash to Nalley.

Nalley also admitted that on the following day, he entered the CVS Pharmacy on Covert Avenue in Evansville, and approached a CVS cash register clerk and said “give me all the money in the register.” Evansville police investigators examined the videos from the stores and identified Nalley as the robber.

Nalley was a resident of an Evansville federal work release facility based on a prior federal firearms conviction at the time of the robberies. Nalley admitted violating his supervised release conditions by committing the robbery offenses during the hearing. He further stated, he used the robbery proceeds to purchase illegal drugs.

According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 3 years of supervised release following Nalley’s release from prison and ordered restitution of $95 be paid to CVS Pharmacy and $103 to Chuckles Convenient Store. Nalley must submit to drug testing and treatment while on supervision.

INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney, announced today the guilty verdict in a five-day jury trial of a Fort Wayne man for charges related to a Fishers bank robbery.  Deandre Armour, 39, Fort Wayne, was convicted in federal court before U. S. District Judge Sarah Evans Barker late last week for conspiracy to commit armed bank robbery, bank robbery and brandishing a firearm in relation to a crime of violence.

Acting United States Attorney Josh Minkler said, “This robbery attempt was well thought out and planned for weeks by Mr. Armour.  I hope he, and any others who plan bank robberies in this district, understand we will hold you accountable for your actions by putting you in federal prison for a very long time.”

In early June 2013, the Federal Bureau of Investigation (FBI) learned that Armour and several others were planning to commit bank robberies in the vicinity of Indianapolis.  FBI agents began surveillance of Armour as he cased a Community Bank branch located on Reynolds Drive in Fishers.  Agents watched Armour case the same bank for approximately two weeks.

By June 25, 2013, Armour had decided to rob the Community Bank the following morning.  Armour and several associates traveled to Fishers from Fort Wayne, Indiana.  That evening, Armour and two conspirators purchased items to be used in the robbery, including clothing for disguises, zip ties, latex gloves, and a set of two-way radios.

Early the morning of June 26, 2013, Armour and a conspirator dropped off two accomplices, Duryea Rogers and Xavier Hardy, near the Community Bank, where they hid themselves in a dumpster enclosure near the back door to the bank.  Rogers and Hardy wore disguises provided by Armour and carried loaded firearms.  Shortly thereafter, Armour and two other accomplices parked in a nearby parking lot where Armour could observe the bank and where he directed the activities of Rogers and Hardy by two-way radio.

A bank employee arrived at about 8:00 AM, and when she went to unlock the back door, Rogers and Hardy emerged from hiding and forced her into the bank at gunpoint.  When the employee was unable to open the vault by herself, Rogers forced her onto the floor where he secured her hands and feet with zip ties.  Rogers and Hardy then stole the employee’s car and fled.  Armour and his accomplices followed in two other vehicles.

FBI agents and officers of the Fishers Police Department quickly tracked the three vehicles to the vicinity of North-by-Northeast Boulevard and Carney Drive near 96th Street in Fishers.  Hardy, who was still armed, was apprehended in a hotel lot after a short foot chase.  Duryea Rogers fled into a nearby hotel, where he was arrested after officers found him hiding in a closet.  Rogers’ handgun, and various other evidence, was found nearby.

Three other accomplices have pleaded guilty prior to trial for their role in the robbery.

Duryea Rogers 28, Fort Wayne- received a 12 year sentence
Xavier Hardy, 27, Fort Wayne, awaiting sentencing
Tahitia Burnett, 42, Fort Wayne, awaiting sentencing

“Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI wishes to recognize the significant contributions made by the officers from the Fishers Police Department who work diligently with the members of the FBI Safe Streets Task Force to identify and apprehend these dangerous individuals.  Our law enforcement partnerships help to ensure that violent criminals are removed from the streets”.

According to Assistant United States Attorneys William L. McCoskey and Michelle P. Brady, who prosecuted this case for the government, Armour faces up to life in prison for his crime.

INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney announced today that  Frank Mejean, 53, and his wife Antonnette Mejean, 49, both of Carlisle, Indiana were sentenced in federal court today by U.S. District Judge Jane Magnus-Stinson. Frank was sentenced to six months in federal prison and Antonnette received three years of probation after being convicted of wire fraud.

Frank Mejean served as the elected trustee of Jefferson Township, in Sullivan County from 2009 to 2013. Antonnette was employed as the township clerk and township investigator who also was awarded a lawn maintenance contract serving Jefferson Township.

“This is yet another case of public officials serving themselves and not the public by stealing money from the poor and the disabled,” said Minkler. “It is about as low as you can get.”

“In court testimony the government proved that the pair engaged in a scheme to defraud Sullivan County by overpaying their salaries every year as well as overcompensating Antonnette Mejean for the lawn maintenance contract. The two submitted false financial documents to the State Board of Accounts to cover up their improper expenditures. In 2009 and 2010 Frank Mejean’s approved salary was $9,800; he paid himself $23,143 in 2009 and $12,807 in 2010. In 2011 and 2012, Frank Mejean’s approved salary was $10,200, he paid himself $25,578 in 2011 and $12,503 in 2012. Salary overpayments from 2009-2012 totaled approximately $34,033.  Total salary overpayments for Antonnette’s salary were approximately $9869.

Antonnette Mejean was given a lawn maintenance contract to cut grass in the township and was overpaid $19,624 from 2009 through 2011.

The pair also wrote several checks from 2009-2012 from the township account to pay for personal and business expenses on Frank Mejean Plumbing, a company owned by the couple. Several checks were written for back taxes owed from the plumbing business, some for equipment for the business and one for a mortgage payment on their home. In total, the Mejeans stole over $124,400 from Sullivan County.

This case is the result of outstanding law enforcement work by the Federal Bureau of Investigation, the Indiana State Board of Accounts, the Indiana State Police and the Internal Revenue Service. All these agencies are partners in the U.S. Attorney’s Public Integrity Working Group which began in 2012, intended to aggressively investigate allegations of fraud, waste and abuse by public officials in Indiana. Anyone with information on public corruption is encouraged to contact the U.S. Attorney’s office at (317)229-2443.

According to Senior Litigation Counsel Bradley Blackington who prosecuted the case for the government, Frank Mejean will serve three years of supervised release after his sentence.

Former insurance agent conspired to steal over $160,000 in commissions based on fraudulent annuity sales to elderly clients

EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today an Evansville man was sentenced to 40 months (over three years) in federal prison by U.S. District Chief Judge Richard L. Young.  Danny Lee Beavin, 40, Evansville, was found guilty yesterday of wire fraud, conspiracy to commit wire fraud, mail fraud and access device fraud.

“Risking the life’s savings of our seniors to make a fraudulent commission is a crime we take very seriously in my office,” said Minkler.  “Those who choose to betray the trust of some of our most beloved citizens will be held strictly accountable.”

Beavin persuaded clients who were over 80 years old, to purchase annuity insurance policies issued by the Americo Company.  Beavin made false statements on the applications indicating the clients were younger than 80, allowing him a larger commission.  In some cases, he received commissions up to 9% of the original lump sum purchase amount.  In some cases, persons over 80 years old were not eligible for the annuity policy he sold to them.  The elderly clients trusted Beavin protect their interests and submit accurate information to the insurance company.

Beavin appeared before a magistrate judge on January 16, 2014, for an initial appearance on the original charges.  After being released, he went to several health clubs in Vanderburgh and Warrick Counties for the purpose of stealing car keys and wallets from health club members who were using the facility.  Beavin successfully used the stolen credit and debit cards of three the health club victims totaling $1,668, and attempted to use the cards for another $931.  He used some of the money to buy gift cards, alcohol at an Evansville nightclub, gasoline and cash advances.

This case was jointly investigated by the United States Secret Service and the Evansville Police Department.

According to Assistant United States Attorney Todd Shellenbarger, who prosecuted the case for the government, Beavin was fined $2,000 and must serve three years of supervised release after his sentence.  During the period of supervised release Beavin was ordered to pay restitution to the victims.

Township Community Business Counselor alleged to have embezzled over $66,000 in Social Security benefits intended for the elderly and disabled

INDIANAPOLIS - Acting United States Attorney, Josh J Minkler announced this morning the arrest of Carmen Batts-Porter, 32, Indianapolis, who was charged by criminal complaint with theft/embezzlement of federal program funds.  Batts- Porter serves as the Community Business Counselor for the Center Township Trustees Office, administering Social Security or SSI payments to beneficiaries who are incapable of managing their own payments.

"Stealing from those who are the least capable is a crime we will never look away from,” said Minkler.  "If you do not uphold the public trust, our Public Integrity Working Group will find you, investigate you and the U.S. Attorney's Office will prosecute you to the fullest extent of the law." Minkler further stated.  “This is the second time in six months federal law enforcement has had to police the Center Township Trustee’s Office.  It is time for Center Township Government to clean up this mess.”

Batts-Porter worked at the Center Township Trustee’s Office which serves as the Representative Payee (RP) for Social Security benefits.  The RP administered SSI payments to beneficiaries and whose main responsibility is to use the SSI benefits to pay for current and foreseeable needs of the beneficiary. The Center Township Trustee’s Office manages over $1 million annually for the Social Security Administration.

The criminal complaint alleges that from 2010 to 2014 Batts-Porter embezzled $66,682 in Social Security Administration (SSA) funds which were held in trust for SSA beneficiaries. It is further alleged that she used the embezzled money to pay person credit cards during that period. The funds were discovered to be missing during a routine audit by SSA investigators.

Minkler explained this case was the result of outstanding law enforcement work by the
Federal Bureau of Investigation, the Social Security Administration, Office of Inspector General, and the Indiana State Board of Accounts.  All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana.  Individuals with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.

            FBI Special Agent in Charge W. Jay Abbott said, ‘“The FBI is committed to investigating individuals that violate the public’s trust.”

SSA OIG, Office of Investigation, Special Agent in Charge William J. Cotter said, “It is unfortunate that, once again, the Public’s confidence in government is shaken by a civil servant lining her pockets with money stolen from some of the most vulnerable members of our society.”

According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, Batts-Porter could be sentenced up to 10 years in federal prison if convicted. She had her initial appearance before a magistrate judge yesterday and was released; no future court date has been set.

A complaint is only charges 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.

Southside businesses robbed at gunpoint, suspect then led law enforcement on high-speed chase

PRESS RELEASE

INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney, announced today an Indianapolis man was sentenced to 20 years in federal prison for robbing two Indianapolis businesses at gunpoint in October of 2013.  Joseph Dale Hamilton, 48, was sentenced in federal court by U.S. District Judge William T. Lawrence after being found guilty of using a firearm during a crime of violence and possession of a firearm by an armed career criminal.

“Keeping our communities safe by prosecuting the worst-of-the-worst, has been, and will remain a top priority for this office,” said Minkler.  “If you are a felon and choose to illegally carry a firearm, you can expect the full wrath of federal prosecution.”

Evidence from the sentencing indicated Hamilton robbed a Phillips 66 gas station on Madison Avenue on October 18, 2013, and a Walgreens pharmacy two miles south of that location on October 21, 2013.  During both robberies, Hamilton menaced employees of the victim businesses with a shotgun and demanded money from their cash registers.  Hamilton obtained approximately $150 from the Phillips 66 and approximately $45 from the Walgreens.  Law Enforcement officials from the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department obtained surveillance video from the two businesses and were able to identify Hamilton as the suspect.

On October 25, 2013, FBI agents and IMPD officers attempted to arrest Hamilton as he drove a vehicle along I-65 on the south side of Indianapolis.  Hamilton did not stop, however, and instead led police on a high speed chase which ended after Hamilton’s vehicle left the interstate at the I-65 / I-70 interchange, crossed a grass embankment, and came to rest in a parking lot in the 900 block of South East Street.  Hamilton attempted to flee on foot but was apprehended a short distance away.

Hamilton, who was convicted of three counts of robbery in 1987, possession of a firearm by a serious violent felon in 2000, possession of cocaine in 2006, and residential entry in 2013, is considered an armed career criminal under federal law and received an enhanced sentence for the firearm possession charge due to his violent criminal history.  He also received a consecutive five year sentence for using that firearm during a crime of violence.

Special Agent in Charge W. Jay Abbott stated, “This case demonstrates the commitment of the FBI and Indianapolis Metropolitan Police Department to identify, investigate, and prosecute violent criminal organizations in the Indianapolis area.  The sentence imposed, as a result of our investigation, should send a powerful message to violent criminals that they will be held accountable for their actions.”

“We are encouraged by the continuous dedication and efforts of the U.S. Attorney’s Office, our law enforcement partners and the detectives involved in this case in making our communities safe,” said Chief Rick Hite of the Indianapolis Metropolitan Police Department. “By seeking the maximum sentence allowable by law, we are sending the message that these violent individuals will no longer be allowed to pose a threat or continue to instill fear in our communities.”

According to Assistant United States Attorney Matthew Rinka, who prosecuted the case for the government, Judge Lawrence also imposed a $1,000 fine and ordered Hamilton to serve five years of supervised release upon discharge from the U.S. Bureau of Prisons.

Extradited from UK and brought to Indianapolis to faces charges

INDIANAPOLIS – Josh Minkler, Acting United States Attorney, announced today that Domminich Shaw 35, London, England, has been extradited from the United Kingdom to face formal charges involving child pornography.

“Mr. Shaw has been exploiting American children from nearly 4000 miles away for several years,” said Minkler. “His crimes have been stopped and his accountability to the American people begins today.”

Shaw became a target for law enforcement officials from the United States and Europe in 2011. It is alleged that Shaw sexually exploited children and conspired to distribute child pornography from computers near West London. Much of his pornography collection involved very young children, most under the age of five.

He was indicted in the Southern District of Indiana in February 2011, and arrested by UK law enforcement officials at that time. He has been in custody ever since. He was extradited by UK officials and arrived in Indianapolis escorted by local FBI agents early Saturday morning, December 20, 2014. He had his initial appearance before a magistrate judge today and was ordered detained until trial. No trial date has been set.

Several of Shaw’s co-defendants have been convicted in US courts and are now serving decades in federal prison. Shaw has been formally charged with conspiracy to distribute and receive child pornography, conspiracy to commit sexual exploitation of children, distribution of child pornography and sexual exploitation of children.

The investigation is the result of significant efforts of the Federal Bureau of Investigation, with assistance from the Indiana State Police, Kokomo Police Department and Brownsburg Police Department.

FBI Special Agent in Charge W. Jay Abbott stated "this case is an excellent example of the collaborative efforts of law enforcement officers around the world working together to ensure individuals that victimize children are held accountable.”

This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.

Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

According to CEOS trial attorney Michael Grant and Senior Litigation Counsel Steve DeBrota who are prosecuting this case for the government, Shaw could face a lifetime 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.

Indianapolis man defrauded taxpayers and government of nearly $890,000

INDIANAPOLIS – Josh J. Minkler, Acting United States Attorney, announced today the sentencing of an Indianapolis businessman found guilty of theft of government money and aggravated identity theft. Basilio Estevez, 61, was sentenced 36 months in federal prison by U.S. District Judge Richard L. Young.

“Identity theft is one of the fasting growing crimes in our country, said Minkler. “When you our social security numbers and dates of birth are stolen by people like today’s defendant, we feel personally violated.”

In February 2012, Estevez purchased a check cashing business called Rodriguez Check Cashing (RCC) in Indianapolis. Estevez then opened several bank accounts under the business name RCC. From February 2012 through April 2013, investigators identified 84 fraudulent tax refund checks deposited into the RCC account totaling over $889,000. Half of the checks were directed to addresses in New York and New Jersey; the other 42 were directed to addresses in Indianapolis.

Background investigations of the individuals listed as tax payers were revealed to be residents of Puerto Rico and never lived at the address where the fraudulent refund checks were mailed. All the refund checks used Form W-2’s using false wages and federal withholding information. Estevez withdrew a large amount of money from the RCC account in cash for his personal use.

A “decoy” IRS refund check was sent to Estevez’s Indianapolis residence in April 2013, and deposited into the RCC account which eventually led to his arrest.

This case is the result of a collaborative effort by the United States Postal Inspection Service and the U.S. Attorney’s Office. Investigators with the Postal Inspection Service provided key information in securing Estevez’s conviction and sentencing today.

According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Estevez faces three years of supervised release after his sentence and must pay $889, 000 in restitution to the U.S. Government.

EVANSVILLE – Josh J. Minkler, Acting United States Attorney, announced today that Charles M. Prideaux, 47, Evansville, Indiana, was sentenced to 60 months in prison by Chief U.S. District Judge Richard L. Young for possession of sexually explicit material involving minors. This case was the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force and the Evansville Police Department.

“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Distributing pornography re-victimizes our children every time it is passed from one person to another.”

Prideaux pleaded guilty to the charge immediately before being sentenced yesterday. Prideaux admitted that he used a laptop computer to search for and download child pornography using file sharing software that he loaded on to the computer system. Prideaux operated the computer from his residence in Evansville, Indiana, before the computer was seized by law enforcement investigators on November 1, 2012.

According to Assistant U.S. Attorney, Todd Shellenbarger, who prosecuted the case for the government, Judge Young also imposed a 10 year term of supervised release. During the period of supervised release, Prideaux must register as a sex offender, participate in a sex offender treatment program, and cannot have any unsupervised contact with minors. The Court also ordered the forfeiture of computer equipment used in the offense which will be destroyed by the government. Prideaux must submit to drug testing while on supervision.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood, marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resource.”

Fishers man defrauded businesses of over $600,000 on false promises

INDIANAPOLIS – Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a Fishers businessman who was convicted in June of this year on 10 counts of wire fraud. Hrond Arman Gasparian, 69, was sentenced to 24 months in federal prison by U.S. District Judge Sarah Evans Barker.

“In any case, fraud is stealing,” said Minkler.” It is simply taking money from hardworking, honest individuals and putting it in the hands of a thief. In this case, the thief victimized a church. You can’t get any lower than that.”

Gasparian claimed he was a loan broker who could secure funding for businesses and non-profits. He was convicted for his involvement in two fraudulent schemes that swindled prospective borrowers of hundreds of thousands of dollars.

The first scheme involved Bell’s Chapel Church in Indianapolis. Gasparian told members seeking financing to rebuild the church that burned in 2008, he could secure a $3 million grant but would need $365,000 for earnest money and $35,000 non-refundable fee for Gasparian to broker the deal. He told Bell’s Chapel he would put the money in an escrow account, and the refundable portion would be returned upon securing the grant. Gasparian instead spent the $400,000, never securing the grant to Bell’s Chapel and never refunding the earnest money.

In the second scheme Gasparian was convicted of fraudulent behavior which involved two Indianapolis-area businessmen seeking to secure financing for a new construction project. Gasparian assured them he could secure several million dollars in financing for them, but needed $200,000 in earnest money and $25,000 for his brokering fee. Like the members of Bell’s Chapel, the businessmen never received a loan, nor were they returned the refundable earnest money that had been given to Gasparian.

This case is the result of a collaborative effort by the FBI and the U.S. Attorney’s Office. Investigators with the FBI provided key information in securing Gasparian’s conviction. W. Jay Abbott, Special Agent in Charge of the Indianapolis Office said, “The American public needs to know that those who commit financial fraud will be held accountable and today’s sentence makes it clear that this type of fraud in a serious violation of law.”

According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Gasparian faces two years of supervised release after his sentence.

Fishers man swindled millions from unsuspecting investors.

INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney announced today a Fishers man was charged by the grand jury with wire fraud, securities fraud and money laundering. John K. Marcum, 50, was arrested at his home and had his initial appearance yesterday.

“Defrauding people of their hard-earned retirement savings is criminal behavior,” said Minkler. “The indictment demonstrates that Marcum used investor’s retirement accounts as his own personal piggy bank to fund his lavish lifestyle. Anyone who does that will face the full force of federal criminal prosecution.”

In 2010, Marcum founded the investment firm Guaranty Reserves Trust, LLC (GRT) operating in the Indianapolis area. He allegedly promised investors that he would use their money to achieve significant returns by trading securities, stocks and bonds with no fees being charged. Marcum arranged for investors to deposit money into various accounts and self-directed IRA’s which allowed him to control the investors’ money.

From 2010 through 2013 Marcum solicited millions of dollars from 16 investors. Marcum represented himself and GRT to be worth millions of dollars with celebrity clients and traded very conservatively. He allegedly promised to earn high rates of return with no risk to the investors’ principle. In reality he failed to invest the money as promised and converted it for personal gain. Marcum commingled the funds to finance a personal line of credit, highly speculative start-up ventures, cars, vacations and other gifts.

This was a joint investigation with the Federal Bureau of Investigations and the Internal Revenue Service Criminal Investigations.

W. Jay Abbott, Special Agent in Charge, stated, “The FBI will aggressively pursue those who commit financial fraud. It is a priority to the Bureau to protect the American public from these types of crimes.”

IRS Criminal Investigation Special Agent in Charge James C. Lee stated, “IRS Criminal Investigation stands united with the FBI and the United States Attorney’s Office to bring justice to those who commit crimes against our society. We are committed to protecting the American taxpayers by following the money and holding individuals who violate the public’s trust accountable for their actions”.

According to Winfield D. Ong, Criminal Chief for the United States Attorney’s Office, who is prosecuting the case, Marcum faces up to 50 years in prison and fines of over $5 million if convicted.

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

Deputy used excessive force on two occasions while on duty

TERRE HAUTE - Acting United States Attorney Josh J. Minkler announced this afternoon the sentencing of Terry Joe Smith, a/k/a T.J., age 38, of Greencastle, Indiana. Smith who served as a deputy with the Putnam County Sheriff’s Department was sentenced to 14 months by U. S. District Judge William T. Lawrence. Smith was found guilty after a jury trial in September of this year on two counts of deprivation of civil rights under color of law.

“The public has a right to expect better from their law enforcement officers,” said Minkler. “It is certainly a tragedy when a law enforcement officer with a family choses to violate the civil rights of our citizens, but it would be a far greater tragedy if T.J. Smith was not held fully accountable for his unlawful use of force in this case.”

Testimony at trial indicated that Smith used excessive force against citizens on two occasions in his capacity as a Putnam County Sheriff’s Deputy. These incidents occurred on West Stardust Road and at the Lazy Acres trailer park in Greencastle.

On one occasion Smith punched a victim in the face after other officers had secured the victim resulting in serious bodily injury. The second offense occurred at the Lazy Acres Trailer Park in Greencastle when Smith threw a handcuffed person to the ground and drove his knee into that person’s back while lying on the ground.

Law enforcement officials are subject to criminal prosecution whenever evidence exists that they knowingly abuse their authority and deprive individuals of their constitutional rights. Such acts of misconduct, known as acts committed under “color of law,” include allegations of excessive force.

"The FBI will vigorously pursue law enforcement officers who violate their sacred duty to protect and serve,” said Special Agent in Charge W. Jay Abbott. “The vast majority of law enforcement officers serve bravely and with great integrity in the performance of their duties."

Minkler praised the outstanding law enforcement work by the Federal Bureau of Investigation. The FBI is a leading partner in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana.

According to Assistant United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum, who prosecuted the case for the government, Smith will serve two years of supervised release after his sentence.

Third defendant in drug gang given lengthy sentence

INDIANAPOLIS – Acting United States Attorney Josh J. Minkler today announced the sentencing of Brandon Lomax, 37, Indianapolis, to life in federal prison without parole. Lomax was the leader of a heavily armed drug trafficking organization that operated in the Haughville neighborhood of Indianapolis. The sentence was imposed by District Court Judge Sarah Evans Barker.

Lomax and two others were convicted in February of twenty criminal counts including conspiring to possess heroin, possession with intent to distribute heroin, distribution of heroin and illegal possession of firearms. Lomax, his cousin Anthony Lomax 39, and Demond Glover, 35, were all found guilty of their involvement in the conspiracy. Anthony Lomax was sentenced to 400 months (over 33 years) and Glover 330 months (over 27 years) earlier this year.

“Violent armed drug dealers have ravaged our communities, and heroin has become their drug of choice,” said Minkler. “Putting those who infect our streets with this terrible drug behind bars is a top priority of this office, and this sentence should send a strong message that the United States Attorney’s Office will end your drug dealing career permanently.”

Lomax’s sentence came after a jury verdict found that the he and the other defendants conspired between 2009 and 2012 to distribute kilogram-quantities of heroin in and around the Haughville area of Indianapolis. The trio trafficked hundreds of pounds of heroin from the Chicago area to Indianapolis. They sold most of their drugs on the near-Westside of Indianapolis. Between them, they represent 13 felony convictions dating back to 1997.

Heroin use and overdose deaths are on the rise in Indianapolis and other major cities in recent years. As prescription drug addiction and abuse spread across the state and country, users switched to heroin as opioid pills became more expensive and the cost of heroin has dropped.

According to Assistant United States Attorneys Michelle Brady and Melanie Conour, who prosecuted the case for the government, Anthony Lomax and Glover will both serve 10 years of supervised release after their sentence.

Daniel Webster Elementary students take pledge to stay away from gun violence

INDIANAPOLIS - Acting United States Attorney Josh Minkler will be moderating a STUDENTS AGAINST GUN VIOLENCE program at Daniel Webster Elementary School 46, 1450 S. Reisner Street, tomorrow, November 21st, at 10:00 am.

Minkler will be joined by U. S. Magistrate Judge Tim A. Baker, Prosecutor Terry Curry, Sheriff John Layton and IMPD Chief of Police Rick Hite.

The students of Daniel Webster will be given a gun-safety presentation by agents from the Federal Bureau of Investigation and the Bureau of Alcohol Tobacco Firearms and Explosives. They will then take an anti-gun violence pledge administered by Magistrate Judge Baker and sign a pledge banner.

Students, school administrators and law enforcement officials will be available for comment immediately after the program.

The Media is welcome.

Indianapolis, IN – Acting U.S. Attorney Josh J. Minkler announced today that the Southern District of Indiana collected $3,419,913 in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,668,871 was collected in criminal actions and $1,751,041 was collected in civil actions.

Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”

“Collecting money owed to ‘the people’ of our district is a commitment I take very seriously,” said Minkler. “Those who steal and fraudulently take money from victims will be held accountable and my office will do everything humanly possible to return the money to its rightful owner.”

This fiscal year the U. S. Attorney’s Office collected the final payment of $285,000 from North American Green for an EPA violation involving pesticide use in its Evansville and Poseyville Indiana plants. The total fine was $910,000.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Additionally, the U.S. Attorney’s office in the Southern District of Indiana, working with partner agencies and divisions, collected $1,115,556 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney announced today the arrest of an Indianapolis man for bank fraud, wire fraud and bankruptcy fraud in a scheme involving the theft of over $5 million dollars. Todd J. Wolfe, 52, was arrested at his home this morning.

“Defrauding a financial institution affects all honest, hardworking individuals,” said Minkler. “Anyone who uses their position to abuse the public’s trust will be held strictly accountable.”

Since 2009, Wolfe operated DECA Financial services in Fishers, Indiana. DECA was a full service credit collections company which at one time employed nearly 75 individuals and whose principal activity was to collect delinquent loans for health care, student loans and financial services.

On two occasions, Wolfe allegedly filed false financial reports to BMO Harris bank inflating the assets of his company. The false reports allowed Wolfe to obtain lines of credit which he in turn used for personal expenses. Over a two and one half year period, the credit extended to Wolfe increased from $1 million to $7.5 million. Affidavits show he used some of the money to make payments on his personal residence, an automobile, personal credit card accounts and a lake house.

In June, 2013 Wolfe agreed to sell an individual $1 million in DECA stock which represented 5% ownership in the company. The victim was never repaid anything for his stock purchase. Wolfe allegedly used some of the $1 million to purchase a 2011 Audi 5S automobile. In February of this year, creditors forced Wolfe into bankruptcy. An attorney representing Wolfe and DECA filed a motion with the court stating Wolfe had a living trust worth over $14 million which could be used to repay creditors. The actual value of the trust was $52,000. The misrepresentation likely would delay the appointment of an independent trustee to oversee the operation of DECA and delay creditor’s access to books and records.

This was a joint investigation with the Federal Bureau of Investigations and the U.S. Bankruptcy Trustee.

FBI Special Agent in Charge W. Jay Abbott stated, “The FBI remains committed to seeking out those individuals that enhance their lifestyle through ill-gotten gains obtained by defrauding financial institutions.”

“I am grateful to Acting U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases as evidenced by today’s proceedings,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois (Region 10).

The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.

The charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Southern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.

According to Winfield Ong, Criminal Chief for the U.S. Attorney’s Office, Wolfe faces decades in prison and substantial fines if convicted.

A complaint is merely a charge and not proof of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.

Township Chief Financial Officer embezzled over $343,000 in Public Money

INDIANAPOLIS - Acting United States Attorney, Josh J. Minkler announced today that Alan Mizen, 59, the former Chief Financial Officer for Center Township, Marion County, IN. will plead guilty to federal public corruption charges. The information charging theft from programs receiving federal funds and Mizen’s plea agreement were filed today.

"The public deserves to have public officials whom they can trust to do the right thing,” said Minkler. “When that trust is betrayed, be assured, the United States Attorney’s Office will hold them accountable. The agreement and charges filed today accomplish that goal.”

According to court documents, on June 10, 2010, Mizen signed on to the computer system for Center Township and created an invoice for a check in the amount of $343,541.08 which was purportedly payable to the Treasurer of the State of Indiana. On June 16, 2010 he wrote a check for the same amount from the Center Township’s bank account to “Attorney’s General Clearing Tr.” Mizen signed the check and deposited it into a new account he had created at PNC Bank.

Mizen then transferred the funds that he deposited into the PNC Bank account to various personal accounts that he maintained. From the personal accounts, Mizen used over $200,000 to help purchase a residence in Zionsville, purchase a Toyota Tacoma pickup truck, fund his child’s college education, finance personal vacations, purchase a diamond necklace and diamond ring for $8,900 during a trip to the Cayman Islands, and make other consumer purchases. Mizen’s used taxpayer funds to finance these personal expenditures from June 10, 2010 through July 2012.

Mizen must make pay restitution for the full amount of $343,541 to Center Township. In his signed plea agreement, Mizen agrees to use the proceeds of the previously seized assets, to pay the restitution amount.

Minkler explained this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation, Indiana State Board of Accounts and the Internal Revenue Service. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Anyone with information on public corruption is encouraged to contact the U.S. Attorney's Office at (317) 229-2443.

Federal Bureau of Investigation Special Agent in Charge W. Jay Abbott said, “Citizens are owed integrity at all levels of government.”

Internal Revenue Service Criminal Investigation Special Agent in Charge James C. Lee stated, “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-Criminal Investigation helps ensure that all Americans, including public officials, are held to the same standard.”

According to Senior Litigation Counsel, Bradley A. Blackington, who is prosecuting the case for the government, Mizen could be sentenced to up to ten years in federal prison, pay a $250,000 fine and serve three years of federal supervised release.

No sentencing date has been set.

Two defendants trafficked child pornography in sophisticated conspiracy

INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney, Assistant Attorney General Leslie Caldwell and United States Postal Inspector Acting Inspector in Charge Troy Raper announced today the guilty verdict of two men charged with conspiracy to distribute and receive child pornography, conspiracy to advertise child pornography and engaging in a child exploitation enterprise. In a long-running, world-wide child exploitation enterprise, John D. Gries 48, Bayshore, New York and James McCullars 56, Huntsville, Alabama, were found guilty by a federal jury in Indianapolis after a six-day trial.

“Protecting the most vulnerable of our citizens is a responsibility I take very seriously,” said Minkler. “As these men have learned, you aren’t anonymous online – if you engage in this type of behavior, you will face the full force of federal justice.”

“Today's verdict is another example of the dedication the Postal Inspection Service has to the victims of this horrific crime," said Raper.

According to testimony at trial, the conspiracy began sometime in 2000 and operated continuously until April 2012. Gries and McCullars ran various online chat rooms that were protected by a password that was available exclusively to members of the conspiracy. These chat rooms were dedicated to the distribution, receipt and possession of child pornography, and were used by its members as a forum to discuss and promote the sexual exploitation of children.

Today’s defendants and many of the conspiracy members had amassed large collections of materials depicting child exploitation. Using these chat rooms and a number of online servers, the co-conspirators sought to expand their collections and evade law enforcement through the use of sophisticated data encryption software.

In addition, nine other defendants conspired to sexually exploit children and produce new videos and images of that abuse, which could then be distributed to members of the group. Minkler said that as part of this investigation, nearly one-hundred children around the world have been identified as victims of abuse.

Other “Operation Rounder” defendants charged by the U.S. Attorney’s Office who have pleaded guilty or been found guilty include:

John Edwards, age 62, of Indianapolis, IN (17.5 years)
Thomas Vaughn, age 45, of Anderson, IN
John Rex Powell, age 43, of Fort Myers, Florida
Donald Printup, age 36, of Niagara Falls, New York
Michael Fredette, age 46, of Waterford, New York (27 years)
Robert Guillen, age 43, of Wesley Chapel, Florida
David Bebetu, age 51, of Agoura Hills, California
Stephen Harvey Dault, age 48, of McKinney, Texas (17 years)
Rick Ricardo Leon, age 53, of Arlington, Virginia

One of the charged defendants, John Rex Powell, had previously been convicted by the U.S. Attorney’s Office as part of an investigation and prosecution of two Australian citizens who allegedly orchestrated the sexual abuse of their adopted son at the hands of a number of men around the world. Minkler said that Powell’s alleged involvement in both schemes was key in dismantling this conspiracy.

According to Senior Litigation Counsel Steven D. DeBrota and Trial Attorney Amy Larson with Department of Justice – Child Exploitation and Obscenity Section, Gries and McCullars face up to life in prison and registration as sexual offenders.

This case was the result of a collaborative investigation led by the U.S. Postal Inspection Service assisted by the Indiana Internet Crimes Against Children Task Force and the Department of Justice’s High Technology Investigative Unit, as part of Project Safe Childhood. Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Manager allegedly stole packages containing pain medication intended for veterans

EVANSVILLE– Josh Minkler, Acting United States Attorney, announced today federal theft charges against a postal employee who allegedly stole mail packages containing, among other things, hydrocodone, a prescription pain medication, intended for delivery to veterans who receive their Veterans Administration medication through the mail. Kevin R. Hicks, 53, of Evansville, Indiana, was charged with theft of mail matter by an employee. The indictment was the result of an investigation conducted by the United States Postal Inspection Service, the United States Postal Service Inspector General, the United States Department of Veterans Affairs, and the Evansville Police Department.

“Public corruption is one of the highest priorities of this office,” said Minkler. “Those who choose to betray the public’s trust will be held accountable and face the full force of federal law.”

In January of this year, law enforcement officials began an investigation when they determined several packages containing prescription medication from the Veteran’s Administration were not being delivered to the intended recipient. The packages routed to several zip codes in Southern Indiana and Central Kentucky never made it to their destination.

Hicks worked as a manager at the Evansville Postal Processing and Distribution Facility on Petersburg Road in Evansville. As a manager, Hicks had an opportunity to steal U.S. mail. The investigation revealed that Hicks had allegedly stolen over 23 packages containing prescription medications, including hydrocodone, a pain relief medication, for personal use.

Minkler explained the U.S. Attorney's Office established a Public Integrity Working Group in April 2012, with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Individuals with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.

According to Assistant United States Attorneys Todd Shellenbarger and Kyle Sawa, who are prosecuting this case for the government, Hicks could face up to five years in prison and a $250,000 fine if convicted. Hicks will be summoned to appear before a magistrate judge in Evansville.

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.

Pair sentenced for their roles in murdering a fellow inmate

TERRE HAUTE – Acting United States Attorney Josh J. Minkler announced today the sentencing of two men for their roles in the murder of an inmate at the Terre Haute Federal Correctional Institute. U.S. District Judge Jane Magnus-Stinson sentenced William J. Bell, 39, to life without parole for first degree murder and Lenard Dixon, 35, was sentenced to 156 months (13 years) for one count of accessory after the fact.

“Protecting all citizens from senseless violence is important. We owe it to the employees of our federal prisons to do what we can to keep their work places as safe and secure as possible,” said Minkler.

According to evidence presented at trial, Bell entered the cell of a fellow inmate on June 18, 2011 and stabbed him to death. Bell’s cellmate, Dixon, concealed evidence of the crime, including the murder weapon.

Both Bell and Dixon had extensive criminal histories. Bell had nine prior convictions accumulated across Illinois, Arkansas, and Kansas. At the time of the murder, he was serving a nearly 8-year sentence for carjacking. Dixon had several convictions in Kansas and, at the time of the murder, was serving a 35-year sentence for robbery.

“Even those who reside in our prison system deserve a safe living environment,” said Minkler. “One person’s refusal to obey the law should not result in the end of another person’s life.”

According to Assistant United States Attorneys Will McCoskey and Matthew Brookman who prosecuted the case for the government, Dixon’s sentence will be served consecutive to his current sentence.

Inmate threw mixture of urine and feces at nurse in Terre Haute Federal Correctional Facility

TERRE HAUTE – Josh Minkler, the Acting United States Attorney, announced the sentencing of an inmate at the Terre Haute Federal Correctional Complex who was found guilty of assaulting an employee of the facility. James Jackson, 32 was sentenced to 30 months (2 ½ years) by U. S. District Judge William T. Lawrence.

“Protecting the employees of the Bureau of Prisons is a responsibility we take very seriously,” said Minkler. “Maintaining order in the prison system is a dangerous job and we will do all we can to assist in that effort.”

Testimony at the plea hearing indicated Jackson is an inmate at the Correctional Complex serving a 76 month sentence for firearm and drug charges from the District of Columbia. On November 10, 2013, the victim, a registered nurse was dispensing medication to inmates housed in the Special Housing Unit (SHU). A correctional officer opened the food slot of Jackson’s cell so the victim could pass medication to Jackson’s cell mate. As the door was opened, Jackson threw a mixture of urine and feces which struck the victim in the face and her upper body.

The victim was examined by a doctor after she became ill a few days later. She had to undergo months of testing for infectious diseases. She did not develop any further complications from the incident.

According to James M. Warden who prosecuted the case for the government, Jackson’s sentence is as high as the U.S. sentencing guidelines allow and he will serve the 30 months consecutive to all other time.

Terre Haute man found guilty of robbing Farmersburg bank

TERRE HAUTE – Josh Minkler, the Acting United States Attorney, announced the sentencing of a Terre Haute man for the July 15, 2013, robbery of the First Financial Bank in Farmersburg Indiana. Kenneth E. Shelton, 44, Terre Haute, was sentenced to 160 months (over 13 years) in federal prison by U. S. District Judge William T. Lawrence.

“Protecting our communities from violent crime is the number one priority of the United States Attorney’s Office,” said Minkler. “Our resolve to keep violent criminals in prison will never waiver.”

Shelton and an accomplice entered the First Financial Bank on Main Street in Farmersburg on July 12, 2013, to survey the bank. Shelton asked the teller to conduct an account inquiry to make certain he could access his account. On July 15, 2013, Shelton and his accomplice drove to Farmersburg to rob the bank. Shelton walked in and handed a teller a note demanding money. Shelton verbally threatened to shoot the tellers if they did not hurry up and further told them not to push any alarm buttons.

Shelton fled the bank with the money and was driven back to Terre Haute by his accomplice. During their flight, Shelton discarded clothing he wore during the robbery near McDaniel Road in Terre Haute. Law Enforcement soon identified the accomplice who implicated Shelton and recovered the clothing and nearly all the money stolen in the robbery at Shelton’s apartment. The accomplice is pending trial in U.S. District Court. He is presumed innocent until proven otherwise in court.

This case was investigated by the Federal Bureau of Investigation and the Indiana State Police.

According to Assistant U.S. Attorney James M. Warden who prosecuted the case for the government, Shelton must make full restitution on money that was not recovered and serve three years of supervised release after his sentence.

Officer indicted for allegedly smuggling contraband into the Terre Haute facility.

TERRE HAUTE – Josh J. Minkler, the Acting United States Attorney, today announced federal charges against a former corrections officer at the United States Penitentiary in Terre Haute, IN. Edward Tunwar, 54, was charged with distribution of a controlled substance and two counts of providing contraband in a prison.

“We have a right as citizens to put full trust and confidence in our public employees,” said Minkler. “When they betray our trust, they will face the full extent of federal law.”

The government alleges that on December 16, 2013, Tunwar, while working as a corrections officer, provided an inmate of the facility with heroin. It is further alleged that between June 1, and December 16, 2014, Tunwar provided an inmate with a cellular telephone and tobacco products.

This case was jointly investigated by the Federal Bureau of Investigation and the United States Department of Justice Office of the Inspector General.

“The FBI will continue to aggressively pursue breaches of the public trust at the local, state and federal levels of government. Public corruption remains a high priority criminal program,” said Special Agent in Charge W. Jay Abbott.

“We are pleased to collaborate with our law enforcement partners to pursue such significant misconduct by a government employee" stated John F. Oleskowicz, Special Agent in Charge of the United States Department of Justice Office of the Inspector General, Chicago Field Office. Oleskowicz continued "We hope that these charges will serve as a deterrence to others who might betray the public trust."

Tunwar had his initial appearance in Federal Court today before a magistrate judge.

According to Senior Litigation Counsel Bradley Blackington, who is prosecuting the case for the government, Tunwar faces up to 41 years in prison if convicted on all counts.

An indictment is only a charge and 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

Indianapolis man sentenced to 336 months for exploiting local minor females.

INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the sentencing of an Indianapolis man for sexual exploitation of children, enticing minors and distribution of child pornography. Austin Williams 23, was sentenced to 336 months (28 years) by U.S. District Judge William T. Lawrence.

“This Office initiated Operation Community Watch over two years ago with an unwavering resolve to find and prosecute those who exploit our children,” Minkler said. “You are not anonymous online and if you engage in this type of behavior, you will be held accountable.”

Court documents indicate that on January 24, 2013, Austin Williams was arrested by the Indianapolis Metropolitan Police Department and charged with the rape of a fifteen year old victim in Indianapolis. In executing a search warrant as part of their investigation, IMPD investigators searched the defendant's residence and located a cellular telephone. A search of that phone revealed hundreds of sexually explicit images depicting female minors.

A full forensic examination of the phone revealed that Williams had been engaging in a pattern of "sextortion" that targeted young women in the Indianapolis-area. Using fraudulent Facebook accounts that portrayed Williams as a young woman, the defendant would make contact with local female minors and attempt to elicit sexually explicit images from them by offering to "trade" self-made images. Often, Williams would obtain the telephone number of his victims, urging them via text messages to produce explicit images and videos of themselves.

Once these images or videos were produced and sent to the defendant, he would in many instances begin "sextorting" the minors, posting the images on Facebook or threatening to do so. The victims would then be told that the only way to keep these images from being distributed to their friends and family would be through the creation of new images and videos for the defendant.

Through the use of these techniques, the defendant was able in many instances to coerce his victims into repeatedly exploiting themselves. In one troubling incident, the defendant continued to post images of a victim online even after she complied with the defendant's requests. The victim was so distraught that she attempted suicide.

In addition, a number of victims were tricked into meeting up with the defendant, who they were told was a "brother" or "boyfriend" of the young woman they believed they were communicating with online. During these meetings, Williams would attempt to sexually assault the victims, or would actually engage in illicit sexual activity with them. In the case of his final victim, the government argued that Williams followed a fifteen year old female home after one of these arranged meetings and assaulted her outside her home.

According to Senior Litigation Counsel Steve DeBrota and Trial Attorney Amy Larson of the DOJ Child Exploitation and Obscenity Section, who prosecuted this case for the government, Williams faces lifetime supervised release when he completes his prison term.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. The greatest measure of the PSC program’s impact is the identification and rescue of child victims of sexual exploitation and abuse.

Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

INDIANAPOLIS – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the National Shooting Sports Foundation (NSSF) – the trade association for the firearms industry – have announced a reward for information leading to the arrest and conviction of those responsible for the theft of firearms from Wide Open Arms, Inc., a federal firearms licensee in Indianapolis, Ind.

ATF is offering a reward of up to $5,000, which will be matched by the NSSF for a total possible reward of $10,000.

On Sunday, Sept. 28, 2014, a person or persons drove a vehicle into the storefront of Wide Open Arms, located at 3722 East Raymond St., Indianapolis, Ind. Numerous handguns were reported stolen from the scene. ATF, the Indianapolis Metropolitan Police Department, and the Indiana State Police are investigating.

Anyone having information about the burglary should contact ATF at 1-800-ATF-GUNS (800-283-4867). All calls will be kept confidential.

Callers may also provide information anonymously by contacting the following offices: ATF- Indianapolis I Field Office at (317) 287-3500
Crime Stoppers at (317) 262-TIPS

This reward is part of a larger national cooperative initiative between the NSSF and ATF in which NSSF matches ATF rewards in cases involving the theft of firearms from federally licensed retailers. ATF works closely with the members of the firearms industry to curb the criminal acquisition and misuse of firearms.

More information about ATF and its programs is available at www.atf.gov or visit ATF on Twitter @ATFHQ.

EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today that Brittney L. Thorpe, 26, of Rockport, was charged with embezzlement by a Postal Service employee following an investigation by the United States Postal Service, Office of Inspector General.

“Federal employees serve the public, not the other way around,” said Minkler. “Anyone who violates the public trust will be held accountable for their actions.”

The Information alleges that between December 6, 2013 and February 1, 2014, Thorpe, while working as a Postal Service employee of the Richland, Indiana, Post Office, took Postal Service money orders and used them to obtain funds to pay her personal living expenses. The loss to the Postal Service is approximately $5,286.

According to Assistant U.S. Attorney Kyle M. Sawa, who is prosecuting the case for the government, Thorpe faces a maximum of 10 years in prison and a $250,000 fine. An initial hearing will be scheduled in Evansville before a U.S. Magistrate Judge.

An Information 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.

Woman sentenced for theft of $90,000 over six year period

INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the sentencing of a former Indianapolis woman for theft of government money. Rhonda F. Reddy, 59, was sentenced to five months in the Bureau of Prisons, then five months on home detention by U.S. District Judge Tanya Walton Pratt.

“When individuals steal from the organization that represents our veterans, who selflessly give to the service of our country, it gravely concerns me,” said Minkler. “My office will not sit idly by and allow this sort of theft to go unpunished.”

Rhonda F. Reddy held a joint bank account at Chase Bank in Indianapolis with her mother, Dorothy M. Reddy. who was an authorized Department of Veterans Affairs (VA) spousal benefits recipient. Dorothy was entitled to VA benefits until her death based upon the circumstances of the death of her veteran husband. These benefits are not transferrable to anyone else and expired upon Dorothy’s death.

When Dorothy died in December 2007, Rhonda Reddy did nothing to notify the VA of the death and accordingly, the benefits continued to be transmitted into the bank account on a monthly basis. Reddy began using the funds for herself and continued to do so until September 2013, when the VA conducted a death match based upon Social Security Administration data and verified the death of the mother. The loss to the VA is $90,600, based upon the funds received by Rhonda Reddy from after her mother’s death until the VA terminated payments.

According to James M. Warden who prosecuted this case for the government, Reddy must serve two years of supervised release after her prison sentence.

Kokomo man sentenced to 72 months for distributing child pornography

INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the sentencing of a Kokomo man for distribution of child pornography. Brandon Tooley, 33, Kokomo, was sentenced to 72 months (six years) by U.S. District Judge Sarah Evans Barker.

“This Office initiated Operation Community Watch over two years ago with an unwavering resolve to find and prosecute those who exploit our children,” Minkler said. “You are not anonymous online and if you engage in this type of behavior, you will be held accountable.

On October 2, 2013, a federal search warrant was executed on Tooley’s Yahoo! Inc. email account. Agents from Immigration and Customs Enforcement, Homeland Security Investigations (HSI ), discovered emails distributed and received by Tooley that were determined to contain image and video files of child pornography. Two days later, agents acting in an undercover capacity, made contact over Yahoo! Messenger with Tooley. During that conversation, Tooley distributed to the agents an image which was determined to be of a minor engaging in sexually explicit conduct.

On October 7, 2013, federal agents served a search warrant at Tooley’s residence. Agents located an HP desktop computer in the living room of the residence next to the television which was being used as a monitor for the computer. A forensic analysis of the HP desktop computer revealed approximately 45 videos and over 100 images of child pornography.

This case was investigated by HSI and the Hamilton County Metro Child Exploitation Task Force.

“Those who trade child pornography over the Internet mistakenly believe that cyberspace shields them from detection by law enforcement," said Gary Hartwig, special agent in charge for HSI Chicago. "However, as this sentence makes abundantly clear, child sex predators will be caught, prosecuted, and handed the justice they deserve for their despicable actions.”

According to Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Tooley faces ten years of supervised release after serving his sentence.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. The greatest measure of the PSC program’s impact is the identification and rescue of child victims of sexual exploitation and abuse.

Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The four men account for 12 prior felony convictions and represent the worst-of-the-worst

INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the federal indictments of four Marion County men for violent crimes committed in Indianapolis this summer. The defendants include:

Joe Jones, 33, Indianapolis, felon in possession of a firearm
Jacques Boyd, 24, Indianapolis, felon in possession of a firearm
Shane Schmutte, 30, Indianapolis, felon in possession of a firearm
William Ballard, 25, Indianapolis, two counts, robbery involving a controlled substance

“Using the federal hammer to prosecute violent criminals, has been and will remain the top priority of this office,” said Minkler. “Working with our Federal and Indianapolis Metropolitan Police Department partners, we will continue to use every resource possible to make our communities safer.”

The Jones indictment alleges that on May 2, 2014, he was found to be in possession of a 9mm handgun. Jones is a convicted felon, and therefore is not legally entitled to possess a firearm. His extensive criminal history includes felony convictions in Marion County for multiple robberies, battery, and possession of a firearm by a serious violent felon. According to state court documents, Jones was stopped by an IMPD officer for a traffic violation. Jones fled the scene of that stop in the vehicle he was driving, striking other vehicles in the process. An officer observed Jones throw the handgun from his vehicle and once the pursuit ended, recovered the weapon.

The Boyd indictment alleges that on July 3, 2014, he was found to be in possession of a .40 caliber handgun. Boyd’s criminal history includes convictions in Marion County for felony burglary, auto theft, battery, and resisting law enforcement. According to state court documents, Boyd was driving in the area of 30th Street and Emerson Way when he pointed a firearm at occupants of a second vehicle. Once IMPD officers made contact with Boyd, they determined that he had the handgun in his waistband.

The Schmutte indictment alleges that on August 5, 2014, he was found to be in possession of a .40 caliber handgun. Schmutte’s criminal history includes felony convictions in Marion County for multiple robberies and burglary. According to state court documents, Indianapolis Metropolitan Police Department officers were dispatched to the 6300 area of the Monon Trail. As officers approached a group of individuals believed to be involved in the disturbance, Schmutte was observed walking away from the group. An IMPD officer observed Schmutte remove a pistol from his waistband and throw it in the nearby canal. The Indianapolis Fire Department Dive Team recovered the weapon from the canal.

The Ballard indictment alleges he entered two Indianapolis CVS Pharmacies in May of this year and robbed them of Percocet tablets. In both robberies, he approached the pharmacy counter and presented the employee there with a note demanding the narcotic. In one robbery, he verbally threatened that he had a gun and placed his hand in his pocket as if to imply he had a weapon.

FBI Special Agent in Charge (SAC) W. Jay Abbott recognized the dedicated FBI Special Agents, IMPD Officers and Assistant United States Attorney's for their concentrated efforts in identifying and arresting individuals that commit or threaten force, violence, or fear while engaging in heinous illegal activities. “Our law enforcement partnerships are essential in combating violent street crime and ensuring our neighborhoods remain safe,” said Abbott.

“I would like to thank the Indianapolis Metropolitan Police Department for their diligent work on these cases,” stated ATF Special Agent in Charge Michael Boxler. “It is a positive collaboration when ATF works with our law enforcement partners to remove violent criminals from our community.”

Indianapolis Metropolitan Police Chief Rick Hite said, “I am very pleased with the relationship we enjoy with U.S. Attorney’s Office in pursuing criminals who illegally possess firearms. We will continue to aggressively arrest and prosecute anyone who disrupts the safety of our communities.”

The United States Attorney’s Office just last week, hosted the Attorney General’s Advisory Committee meeting in Indianapolis. The goal of the meeting was to have United States Attorneys from around the country make recommendations on best practices to help reduce violence and help make our communities safer. One recommendation was to focus on the most violent offenders and use federal prosecutorial tools keep them off our streets. “We took those recommendations seriously and have demonstrated our resolve to help reduce violent crime,” said Minkler.

According to Special Assistant U.S. Attorney Thomas Lupke, who is prosecuting three of the cases for the government, Schmutte and Jones face from fifteen years to life in federal prison if convicted. Boyd faces 10 years if convicted. According to Assistant United States Attorney Jeffrey D. Preston who is representing the government in the Ballard case, he faces up to 20 years 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.

Attorney General’s Advisory Committee to discuss anti-crime strategies with state and local law enforcement officials in Indianapolis

INDIANAPOLIS– Acting United States Attorney Josh J. Minkler, today announced details of the Attorney General’s Advisory Committee (AGAC) meeting on violent and organized crime which is being held in Indianapolis, September 3-5, 2014. The AGAC gives United States Attorneys from around the country a voice in Department of Justice policies and provides advice to the Attorney General of the United States on new programs that improve the criminal justice system and the delivery of legal services at all levels.

Acting United States Attorney for the Southern District of Indiana Josh Minkler said, “We welcome the collective wisdom of United States Attorneys from around the country to share their knowledge and strategies on how better to make our communities safe."

On Friday, September 5, 2014, several presentations will be made to police executives from the entire state of Indiana in the Indianapolis Federal Courthouse. Topics include presentations by United States Attorney’s from Detroit, Philadelphia, Illinois, New York and New Jersey on gun and other violent crime initiatives. The first two days of presentations will be restricted to AGAC members.

At the conclusion of the training, Acting U.S. Attorney Minkler, and the Chairman of the AGAC Violent and Organized Crime Subcommittee, Stephen R. Wigginton, U.S. Attorney from the Southern District of Illinois, and ranking members of the committee will be available to the media for a follow-up discussion. That press conference will be held:

FRIDAY, SEPTEMBER 5, 12 NOON, IN THE US ATTORNEY’S OFFICE, 10 W MARKET STREET SUITE, 2000

Defendant already on parole for child molest case alleged to have possessed
80 images of child pornography

INDIANAPOLIS– Acting United States Attorney Josh J. Minkler today announced the arrest of an Anderson, Indiana, man for possession of child pornography. William L. Ramsey, 55, was arrested by FBI agents at his home yesterday.

“The most vulnerable citizens in our communities deserve the best protection we can provide,” said Acting United States Attorney Josh J. Minkler. “Fighting against sexual predators remains a top priority in our office.”

According to the criminal complaint, detectives from the Indiana State Police (ISP) received information from the National Center for Missing and Exploited Children that Ramsey was in possession of child pornography. Ramsey was on parole from the Indiana Department of Corrections for child molestation at the time. Acting on the information, parole officers went to Ramsey’s house and discovered pornographic material on his personal computer.

The computer equipment and thumb drives were seized and law enforcement obtained a search warrant to further inspect Ramey’s computers. On further investigation, over 80 images were found on his computer depicting minors engaged in explicit sex acts. Child pornography was also located in a folder for the application “My Image Garden” which is a software program used to organize and print photos.

This case was investigated jointly by and the Federal Bureau of Investigation and the Indiana State Police.

Special Agent in Charge W. Jay Abbott thanks the Indiana State Police for their dedicated investigation of this case. “This case exemplifies the strong partnership between the FBI and the Indiana State Police in the pursuit of those who prey on the innocent.”

“Ask the most seasoned police officer what criminal act shakes them to their core and they will tell you it’s crimes against children,” said Indiana State Police Superintendent Doug Carter. “That’s the very reason it is our priority to thoroughly investigate crimes of this nature and partner with federal authorities to seek the maximum prosecution possible of such criminals.”

This arrest comes nearly two years after the United States Attorney’s Office announced a comprehensive crackdown on child exploitation in Indiana. When Operation Community Watch was launched, it allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

According to Senior Litigation Counsel Steve DeBrota, who is prosecuting this case for the government, Ramsey faces a mandatory minimum sentence of 10 years and a maximum of 20 years if convicted.

Over one million dollars allegedly swindled by two title agents

INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today that Adam Mears, 41 of Carmel and Patrick Hayden, 37 of Greensburg were indicted in separate investigations for embezzling money from their clients. Both face five counts of wire fraud.

“When individuals violate the people’s financial trust, it shakes the foundation of our communities,” said Acting United States Attorney Josh J. Minkler. “Our office works closely with our state and local partners to help maintain the public’s confidence in local leaders.”

According to the indictments, both Mears and Hayden were title agents and controlling members of their respective companies. Mears was a co-owner of First Title, operating in Indianapolis. Hayden was the co-owner of Mainstreet Title operating out of Greensburg.

In these positions, both were required by law to maintain an escrow account which was to be exclusively used to hold client funds and pay expenses associated with real estate closings. Despite these responsibilities, Mears is alleged to have embezzled $648,219.43 from First Title by utilizing the user name and password of another employee to create false user accounts. He then is alleged to have used the money to pay business and personal expenses.

Hayden is alleged to have embezzled $448,172.01 from his clients by diverting funds normally used to pay off existing mortgages, appraisals, title work or other liens on a property. Current closings were being funded by deposits from future closings. The alleged stolen funds were used to finance another business and support a drug habit.

The Indiana Department of Insurance’s (IDOI) routine examination of these agencies revealed improprieties in the appropriation of funds which were communicated to the Indiana State Police and the U.S. Secret Service. IDOI Commissioner Stephen W. Robertson warned, “Insurance fraud is a serious crime which will not be tolerated. IDOI will investigate all claims of fraud and as in this case, partner with local and federal law enforcement to ensure that these types of crimes against Hoosier consumers are prosecuted to the fullest extent of the law.”

According to Assistant United States Attorney Brad Shepard who is prosecuting the case for the government, both men face up to 20 years in federal prison 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.

Mears and Hayden had their initial appearances today before a magistrate judge. Mears was released. Hayden is being held for a detention hearing tomorrow (8/20).

Winfield D. Ong to head up office’s criminal division

INDIANAPOLIS – Josh J. Minkler, Acting United States Attorney for the Southern District of Indiana today announced the appointment of a new supervisor to lead the Criminal Division. Winfield D. Ong, 56, will become the Acting Criminal Chief supervising attorneys who work fraud, public corruption, child exploitation, human trafficking, environmental, and other criminal cases.

Ong is a 25 year veteran of the U. S. Attorney’s Office specializing in white collar cases. He most recently was the lead federal prosecutor in the Tim Durham case resulting in a sentence of over 50 years.

Ong graduated law school from Lewis and Clark College, Portland, OR., in1985, and DePauw University, 1980. He and his wife Jennifer have three adult children. He begins his assignment immediately.

Former postal employee receives 63 month sentence

EVANSVILLE B Josh J. Minkler, Acting United States Attorney, today announced the sentencing of an Evansville man for possessing and receiving sexually explicit material involving a minor. Floyd M. Thompson, 60, was sentenced by Chief U.S. District Judge Richard Young to 63 months (over five years) in federal prison. Thompson was the former postmaster at the Elberfeld post office.

"This Office initiated Operation Community Watch over two years ago with an unwavering resolve to find and prosecute those who exploit our children," Minkler said. "You are not anonymous online and if you engage in this type of behavior, you will be held accountable."

According to court documents, law enforcement first began their investigation in June 2013, when an undercover member of the Federal Bureau of Investigation's Southern Indiana Child Exploitation Task Force connected with a computer that was allegedly sharing sexually-explicit images depicting young children. After downloading a number of these files from the user, investigators traced the online activity to a home in Evansville.

As a result of this information, a federal search warrant was executed in August 2013, at Thompson’s Evansville home. Federal agents interviewed Thompson and took his computer equipment into custody. A preliminary forensic examination of these computers revealed thousands of images and videos of child pornography depicting young girls between the ages of 3 and 12 years old.

This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Evansville Police Department.

FBI Special Agent in Charge W. Jay Abbott stated “The protection of children from sexual predators is one of our highest priorities. The FBI will use every means available to seek out those that prey on the most vulnerable.”

Thompson is being held at Volunteers of America in Evansville and will self-surrender when notified by the Bureau of Prisons.

According to Assistant U.S. Attorney Todd Shellenbarger, who prosecuted this case for the government, Thompson faces a lifetime of supervised release after serving his sentence.

This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.

The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.

Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Armed career criminal receives enhanced sentence for lengthy criminal history

INDIANAPOLIS– Acting United States Attorney Josh J. Minkler, today announced the sentencing of an Indianapolis man for illegally possessing a firearm. O. C. Todd, 54, Indianapolis, was sentenced to 215 months (nearly 18 years) in federal prison by U.S. District Judge Tanya Walton Pratt. He was found guilty in July of this year.

“Prosecuting violent felons who possess firearms will remain a top priority for our office,” said Acting United States Attorney Josh J. Minkler. “Those who think we are not serious will have time to think about it in federal prison. The evidence demonstrates that Mr. Todd was stalking two women with a bag containing a loaded gun, a roll of duct tape, zip ties, and baby oil. The combined efforts of law enforcement to get Mr. Todd off the streets of Indianapolis should make citizens feel safer.”

Court documents state on April 18, 2013, Indianapolis Metropolitan Police Officers (IMPD) received a call to the 1600 block of East Orange Street on a man stalking two women with binoculars. When officers arrived, they saw Todd standing near a pickup truck and watched him drop a blue nylon bag. Todd got into the truck and sped away.

Officers pursued Todd and stopped him a short while later. When officers returned to the original scene, they located the blue bag and inside found a loaded .38 caliber pistol, a roll of duct tape, two large nylon zip ties and a container of baby oil. Todd told officers he was on the Southside of Indianapolis looking for work and because gasoline was cheaper there.

Todd has a lengthy criminal history that made him eligible for enhanced sentencing as an armed career criminal. His history includes:

Five counts of Criminal Confinement, Marion County, 1980
Resisting Law Enforcement, Marion County, January 2000
Resisting Law Enforcement, Marion County, May 2000

This investigation was conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Indianapolis Metropolitan Police Department.

“ATF is committed to combating gun violence in our communities,” said Michael Boxler, ATF Special Agent in Charge for the Columbus Field Division. “We will continue to work with our law enforcement partners to make our communities safer and remove violent offenders from our streets.”

“Persons who prey upon our community, in particular women and children, should receive the maximum sentence allotted by law. It’s obvious that this case warrants attention due to the continuous violent history this individual has shown”, said Chief Rick Hite, “I want to thank our officers and our federal partners for bringing this suspect to justice.”

According to Gayle Helart who prosecuted the case for the government, Todd must pay a $5000 fine and faces five years of supervised release after serving his sentence.

Defendants believed he was driving to Plainfield to meet a 14 year old for sex

INDIANAPOLIS– A sixty-five-year-old registered sex offender, with two prior convictions relating to possession of child pornography and attempted sexual conduct with minors, was found guilty today by U.S. District Judge Jane Magnus-Stinson of attempting to produce child pornography, travel with intent to engage in illicit sexual conduct, transporting child pornography, possessing child pornography, and offense by a registered sex offender, announced Assistant Attorney General Leslie Caldwell and Josh Minkler, Acting United States Attorney for the Southern District of Indiana.

According to the evidence introduced at trial, the defendant, John Alan Lewis, met an individual he believed to be a 14-year-old online in November 2011. From November 2011 until May of 2012, Lewis sent and received numerous images depicting a minor under the age of twelve engaging in sexually explicit conduct via emails with this individual, who actually was an adult male registered sex offender living in Queens, New York. Following the arrest of the individual in the Eastern District of New York, in August of 2012, law enforcement assumed this individual’s online identity and engaged in a series of online chats where the defendant expressed his desire to travel from Ohio to Indiana, pick the 14-year-old up, and take her to a motel to engage in sexual acts with her.

On September 19, 2012, the defendant rented a car in Lima, Ohio and drove to Plainfield, Indiana. He was arrested when he arrived at the agreed upon meeting location. The defendant had in his possession three electronic devices, each of which contained images depicting a minor, between the ages of 10 and 12, fully nude and engaging in sexually explicit conduct

Lewis has been in federal custody since he was arrested in September of 2012. Given the defendant’s criminal history, Attempted Sexual Exploitation of Children carries a mandatory minimum of 35 years in prison and a $250,000 fine. A sentencing date for Lewis has not been set.

“The most vulnerable citizens in our communities deserve the best protection we can provide,” said Acting United States Attorney Josh J. Minkler. “Fighting against sexual predators remains a top priority in our office.”

The case is being prosecuted by Criminal Division Trial Attorney Amy E. Larson of the Child Exploitation and Obscenity Section (CEOS) and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana. The investigation was conducted by the Indianapolis Metropolitan Police Department Cyber Crime Unit, the Indiana State Police Cyber Crime Unit, the Federal Bureau of Investigation Violent Crimes Against Children Section and the Indiana Internet Crimes Against Children Task Force, which is made up of federal and state law enforcement agencies.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Guns from local firearm dealers were sent to Central America for resale

INDIANAPOLIS– Acting United States Attorney Josh J. Minkler, today announced the conviction and sentencing of an Indianapolis man for making false statements in connection with the purchase of firearms and then unlawfully exporting those firearms from the United States to Honduras. Alex Martinez, 41, of Indianapolis, was sentenced to 39 months in federal prison by U.S. District Judge Tanya Walton Pratt.

“Those who choose to make illegal straw purchases of firearms will be held strictly accountable,” said Acting United States Attorney Josh J. Minkler.

This joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Department of Homeland Security, Homeland Security Investigations (“HSI”) began in May of 2010, when law enforcement authorities in Puerto Cortez, Honduras, discovered three identical, stainless steel, Beretta 9 millimeter handguns, wrapped in foam and duct tape, concealed inside a plastic, three-drawer compact disk (cd) organizer inside a cardboard box containing miscellaneous clothing and other personal items. Honduran authorities determined that the shipment of personal belongings had come from the United States, and specifically from Martinez.

A subsequent ATF trace of the three Berettas recovered in Honduras revealed that all three were purchased by Martinez in Greenwood, Indiana, in April of 2010. Further investigation by ATF and HSI revealed that between 2006 and 2010, Martinez purchased 28 handguns from federally licensed gun dealers in the Indianapolis area. Nine of those firearms were later confirmed to have subsequently been registered to various individuals in Honduras.

On June 16, 2011, ATF and HSI agents executed a federal search warrant at Martinez’ residence in Indianapolis. Agents did not find any firearms at Martinez’ residence, however Martinez admitted he had purchased the 28 handguns, shipped some of the weapons to Honduras himself, and sold some of the firearms to individuals who Martinez knew intended to ship them to Honduras. Martinez further admitted that he did not have a license to export firearms from the United States and that he knew it was wrong to export the weapons in the manner he did.

In imposing the sentence that she did, Judge Pratt found that the crimes charged in this case were exceedingly serious, particularly given the destination of the weapons. In reaching that conclusion, the Court noted that Honduras has had the highest homicide rate in the world since 2010, according to the U.S. State Department.

"ATF's mission is to remove from our communities those who would engage in or enable violent crime," stated Special Agent in Charge Michael Boxler.

"This sentence is a direct result of the dedicated efforts of HSI and our ATF partners to create a safer community for the citizens of Indiana," said Special Agent in Charge Gary Hartwig, of HSI Chicago. "Arresting those who attempt to illegally smuggle weapons out of the U.S. is an HSI priority."

According to Assistant United States Attorney Mathew Rinka, who prosecuted this case for the government, Martinez must pay a $5000 fine and serve two years of supervised release following his sentence.

INDIANAPOLIS – Josh J. Minkler, 51, has been named the Acting United States Attorney for the Southern District of Indiana. Minkler served as the First Assistant under former United States Attorney Joseph H. Hogsett and will now lead the federal prosecutor’s office.

In addition to serving as the First Assistant, Minkler was the Drug Unit Chief and served as an Assistant U.S. Attorney prosecuting drug, violent crime, and public corruption cases. He graduated from Indiana University School of Law, Bloomington, IN, in 1988, and earned a bachelor’s degree from Wabash in 1985.

Replacing Minkler as First Assistant U.S. Attorney is Joe H. Vaughn who previously served as the Criminal Chief.

Suspect shot at police officer four times

INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the sentence of Pascal S. Sylla, 46, of Anderson, today. Sylla was convicted of one count of attempted bank robbery and one count of use and discharge of a firearm during and in relation to a crime of violence. Sylla was sentenced to 35 years by United States District Judge Sarah Evans Barker.

“This case proves the diligence of our federal, state and local law enforcement officials,” said Hogsett. “But it also shows that many in our community who call for longer sentences for criminal activity aren’t paying attention to what we do in the United States Attorney’s Office. A thirty-five year sentence means that Mr. Sylla will never walk our streets again.”

On August 1, 2003, Sylla entered the Madison County Federal Credit Union on 53rd Street in Anderson, Indiana. As he entered he pulled out a chrome semi-automatic pistol and ordered the single customer and teller in view to get on the ground. The customer happened to be the Assistant Chief of Police for the Anderson Police Department, Ray Novak. Novak complied with Sylla’s demands but as Sylla went after the bank teller Novak drew a revolver from his ankle, announced he was police and told Sylla to give up.

Novak and Sylla exchanged gunfire. Sylla instructed the teller to get down and advised Novak he would give up. Instead, he took another shot at Novak, and both exited the bank, Sylla took another shot and then fled the scene. While blood samples were obtained from the scene, the case was unsolved until 2010, when the Anderson Police Department was notified that the DNA obtained at the crime scene matched that of a federal inmate. Sylla was serving time in Terre Haute Penitentiary for committing a 2005 bank robbery.

“This sentencing is the result of outstanding law enforcement cooperation between the FBI, Indiana State Police and the Anderson Police Department,” stated FBI Special Agent in Charge W. Jay Abbott.

Anderson Police Chief Larry Crenshaw said, “Today’s sentencing of Sylla is a reminder of the inherent dangers law enforcement officers face each day.”

According to Assistant United States Attorney Cynthia Ridgeway, who prosecuted the case for the government, Sylla faces three years of supervised release after serving his sentence.

Hogsett continues crackdown on illegal drugs and illegal gun possession

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced the sentence of Anthony Lomax, 39, Indianapolis, today. Lomax was sentenced to 400 months (over 33 years) in federal prison by District Court Judge Sarah Evans Barker.

Lomax was tried by Hogsett’s office in February for twenty criminal counts including conspiring to possess heroin, possession with intent to distribute heroin, distribution of heroin and illegal possession of firearms. Lomax, his brother Brandon Lomax and Demond Glover were all found guilty of their involvement in the conspiracy.

“Heroin is a dangerous drug that has ravaged our communities,” said Hogsett. “Putting those who infect our streets with this terrible drug behind bars has been and will continue to be is a top priority of this office.”

“Those who call for longer sentences for the “worst of the worst” have not been paying attention to what the United States Attorney’s Office has been doing for three years as part of our Violent Crime Initiative. Thirty-three years is a long time.”

Lomax’s sentence came after a jury verdict found that he and the other defendants conspired between 2009 and 2012 to distribute kilogram-quantities of heroin in and around the Haughville area of Indianapolis. The trio covered their operations through a shell business, which was discovered by law enforcement investigators.

Heroin use has been on the rise in Indianapolis and other major cities in recent years. As prescription drug addiction and abuse spread across the state and country, users switched to heroin as opioid pills became more expensive and the cost of heroin has dropped.

“The heroin epidemic knows no geographic boundaries and is blind to what tax bracket you happen to be in,” Hogsett said.

According to Assistant United States Attorneys Michelle Brady and Melanie Conour, who prosecuted the case for the government, Lomax will serve 10 years supervised release after his term of imprisonment.

Sheriff indicted as part of on-going effort to fight public corruption

NEW ALBANY– Joseph H. Hogsett, United States Attorney, announced the indictment of Daniel N. Rodden, 60, Jeffersonville, today. Rodden was indicted for seven counts of making a false statement and one count of counseling the destruction of evidence in a federal investigation. He will have his initial appearance this afternoon in front of a Magistrate Judge.

On May 14, 2013, Rodden, the elected sheriff of Clark County, allegedly provided a prostitute with official law enforcement credentials and an official deputy’s badge of the Clark County Sheriff’s Department so that the prostitute could obtain a government employee rate at a hotel in Louisville, KY. Rodden allegedly met the prostitute at the hotel on May 29 in a bedroom and engaged in a sex act with the prostitute.

The Federal Bureau of Investigation (“FBI”) identified Rodden as it was conducting an investigation concerning wire fraud and enticing an individual to travel in interstate commerce to engage in prostitution. FBI agents and Task Force officers interviewed Rodden in May and June of 2014. Over the course of three interviews, Rodden allegedly told FBI agents that he did not give the prostitute government credentials, did not pay to have sexual relations with her, and did not contact her and instruct the prostitute to destroy evidence of their encounter.

“Our message has been consistent but bears repeating: if you violate the public trust, our Public Corruption Working Group will find you, will investigate you, and will prosecute you to the fullest extent of the law,” said Hogsett.

This investigation is part of the U.S. Attorney’s Office Public Integrity Working Group (“PIWG”), a collaborative effort between federal state and local law enforcement agencies to rid Indian of the “culture of corruption” that too often deprives citizens of proper representation. This prosecution comes as part of a joint effort between the Indiana State Police, the FBI, and the U.S. Attorney’s Office.

"FBI investigations seek out truth in the interest of justice and integrity is a bedrock principal of law enforcement. Truth and integrity are essential for those in public office," said Special Agent in Charge W. Jay Abbott.

Anyone who has information to share about public corruption matters is encouraged to contact the Public Integrity Hotline at 317-229-2443.

According to Senior Litigation Counsel Bradley Blackington, who is prosecuting the case on behalf of the government, Rodden faces up to 20 years imprisonment for counseling the destruction of evidence and five years for each count of making a false statement.

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.

California to Seymour methamphetamine distribution operation dismantled

SEYMOUR – Joseph H. Hogsett, the United States Attorney, announced today the indictment of two men who were major methamphetamine distributors in the Jackson County area. Jackie D. Brown, 43, Seymour, was indicted for conspiracy to distribute methamphetamine and possession of a firearm by a convicted felon. Michael Davidson 42, Colton, California, was indicted for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.

“Keeping our Hoosier neighborhoods safe from those who peddle drugs and illegally possess firearms is a top priority of my office. Those who do not believe me should take note of these two defendants,” said Hogsett.

Court documents allege that Davidson was a source of supply for methamphetamine in the Jackson County area. Law enforcement learned that Davidson would mail-via parcel delivery companies, large amounts of methamphetamine from California to Indianapolis. He would then fly to Indianapolis, rent a car and pick up his packages that allegedly contained methamphetamine for distribution in and around Jackson County.

Through their investigation, law enforcement learned that Davidson would distribute a large portion of his methamphetamine to Brown who would then re-distribute it to other buyers and users. A warrant was served at Brown’s residence on June 4, 2014, and officers found four firearms, two of which were loaded handguns as well as methamphetamine, marijuana, drug paraphernalia and approximately $40,000 in cash. Most of the cash was found in a hidden compartment in a false wall. By law, Brown may not possess a firearm. He was convicted of dealing methamphetamine in 2003 in Jackson County.

“Methamphetamine has become a scourge in many of our Central Indiana communities. All too often the dealers bring not only dangerous drugs but illegal weapons.” said Hogsett. “This is why our Violent Crime Initiative is so important.”

Announced in March of 2011, the Violent Crime Initiative (VCI) represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 330 defendants have been charged.

This investigation was a collaborative effort between the Drug Enforcement Administration, Indiana State Police and the Seymour Police Department. Both men remain in the custody of the United States Marshal Service.

According to Assistant U.S. Attorney Melanie Conour, who is prosecuting the case for the government, Brown and Davidson face up to life 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.

Hogsett continues aggressive fight against child pornography and proves “Operation Community Watch” an ongoing success

NEW ALBANY– Joseph H. Hogsett, United States Attorney, announced today the conviction and sentence of George M. Thornton, 32, Jeffersonville, for possession of child pornography. Thornton was sentenced to 15 years in federal prison by United States District Judge Sarah Evans Barker.

“Protecting the most innocent Hoosier victims is a top priority of this office. Those who question my sincerity will be shown the seriousness of this promise,” said Hogsett.

In 2011, Thornton was apprehended by the Jeffersonville Police Department for peeping into the windows of a residence, specifically into a room occupied by a minor male. Law enforcement officers determined that Thornton was on probation and contacted his probation officer. During a subsequent search of Thornton’s residence, an external hard drive was located. A forensic examination of this hard drive revealed a total of 25 images depicting prepubescent males engaged in sexually explicit activity.

At the time of Thornton’s arrest, a cell phone was recovered from inside his truck near the residence of which he was peeping into windows. The cell phone was found to contain a video of a minor male driving Thornton’s truck while being recorded by Thornton. Also discovered in his truck were two nylon belts and a knife with four circular blades.

In 1999, Thornton was convicted of child molestation in Clark County, Indiana, and sentenced to a period of ten years’ incarceration, with four years suspended to probation. His probation was revoked in 2007 when he was convicted of two counts of possession of child pornography in Clark County, Indiana. Thornton was sentenced to four years’ incarceration and six years’ probation. Thornton was later convicted of failing to register as a sex offender and sentenced to seven years’ incarceration and four years’ probation. Thornton had served only nine months of the probation portion of this sentence when he possessed the child pornography in this case.

“This type of behavior is deplorable and must be stopped,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message.”

This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, Hogsett launched Operation Community Watch, which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.

This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 defendants, an increase of 25% over the prior year.

Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

According to Assistant United States Attorney Joe Vaughn, who prosecuted the case for the government, Thornton will be subject to supervised release for life after serving his sentence.

Hogsett continues aggressive fight against child exploitation

BROWNSBURG – Joseph H. Hogsett, United States Attorney, announced the sentence of Jason King, 39, of Brownsburg today. King was sentenced to 20 years in federal prison by United States District Judge Tanya Walton Pratt after King pled guilty to one count of distribution of child pornography.

“Protecting the most innocent Hoosier victims is a top priority of this office. Those who might question my sincerity have been shown the seriousness of this promise,” said Hogsett.

Through the work of Homeland Security Investigation (HSI), King was found to have over 600 images of child pornography on his computer. He made the images available to other users via a peer-to-peer sharing network online. Because the computer files containing the images were password protected, King provided interested users passwords that allowed access to the images as well as the ability to download them. King admitted to his role in the distribution of the images.

King is also a registered sex offender. In 1999 he was convicted for child molestation and was re-incarcerated for failing to register as a sex offender after serving his sentence.

“The type of behavior is deplorable and must be stopped,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message.” In 2013, Hogsett launched Operation Community Watch, which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.

According to Assistant United States Attorney Joe Vaughn, who prosecuted the case for the government, King will be subject 10 years of supervised release after serving his sentence.

Hogsett continues aggressive fight against illegal firearm possession to protect Hoosiers

INDIANAPOLIS– Joseph H. Hogsett, United States Attorney, today announced the conviction and sentencing of Donald T. Bryant, 43, Avon, for one count of felon in possession of a firearm, one count of use of false identification in the acquisition of a firearm, and one count of aggravated identity theft. Bryant was sentenced to 78 months (6 ½ years), in federal prison by U.S. District Judge Jane Magnus-Stinson.

“My office has been relentlessly committed to taking illegal gun owners off the streets,” said Hogsett. “Our communities have suffered too much violence at the hands of felons in possession of firearms. We continue to do our part to help stop the senseless violence suffered in our Hoosier communities.”

On August 30, 2012, Bryant purchased a Smith and Wesson, 9mm pistol from Fort Liberty Firearms, a firearms dealer in Avon, Indiana. When making the purchase, Bryant identified himself as “R.B.” a man who died in Lake County, Indiana in 1989. Bryant provided an Indiana Identification Card and other documents in the name of “R.B.” displaying photographs of Bryant, not “R.B.”, on them.

It is illegal to purchase a firearm using a “straw-man” purchase. Usually, this illegal transaction happens when a felon asks a non-felon to purchase a firearm for him or her. Bryant used the identity of a deceased man, to make the illegal purchase.

According to federal law, it is illegal for a person convicted of a felony to possess a firearm. Between 1992 and 2011, Bryant had acquired five separate felony convictions, each with a prison sentence of a year or more. In 2002 Bryant was sentenced to 78 months in federal prison for a firearms conviction in the Northern District of Indiana. He then violated his supervised release conditions and was returned to the Bureau of Prisons for an additional 18 months.

“This case shows the success of our Violent Crime Initiative. One of the most effective ways to prevent violence in our communities is to make sure those with prior felonies are not armed,” said Hogsett.

The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace. In 2011, only 14 firearms charges were filed. Since then, over 325 firearms cases have been prosecuted. By charging these cases federally, violent felons must serve 85 % of their sentence at a minimum.

According to Assistant United States Attorney Mathew Rinka, who prosecuted this case for the government, Bryant must pay $14,800 in restitution to the Department of Education for fraudulently obtaining student loans and serve three years of supervised release after his sentence.

Restaurant owner stole unemployment insurance benefits and tax refunds

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today that Pedro Sanchez, 34, Crawfordsville, was sentenced with theft of government funds related to fraudulent receipt of unemployment benefits and the filing of fraudulent tax returns. Sanchez was sentenced to 26 months with a fine of $773,000 to the Internal Revenue Service (IRS) and $29,000 to the Indiana Department of Workforce Development (IDWD) for restitution. Sanchez was sentenced by District Court Judge Tanya Walton Pratt.

“Theft is always wrong, but theft of unemployment benefits takes money from some of the neediest Hoosier families. It affects all taxpayers and makes the cost of helping those in need higher than necessary,” said Hogsett.

The investigation revealed that Sanchez’s scheme was uncovered by a third party trying to apply for public aid. In May of 2010, an individual went to the Lafayette Indiana Department of Workforce Development office (“IDWD”) to obtain a printout of her past wages to assist in an application for public aid. While assisting her, IDWD determined that she was already receiving unemployment benefit, however, they were not being sent to her address. Instead, a benefits debit card was being sent to an address in Crawfordsville. While looking further into this matter, IDWD determined that multiple debit cards were being sent to the same address, which led investigators to Sanchez.

Further investigation found that Sanchez was defrauding multiple people of their unemployment benefits. Sanchez, through his Mexican grocery store, Video Y Discoteca El Charron (“El Charro”), which contained a money service, cashed numerous IRS refund checks that were issued based on fraudulent tax returns. On some occasions, Sanchez cashed the refund check himself. On other occasions, the tax refund checks were cashed by other people but went through the Mexican grocery store business account of Sanchez. Approximately $1,472,673 was received by Sanchez in fraudulent tax returns between January 2009 and February 2011.

“That someone would use a legitimate business as a cover for stealing funds from unassuming individuals as well as the general public is deplorable,” said Hogsett.

The tax refund scheme included obtaining refunds for individuals using tax identification numbers listing wages that could not be verified by employers. This was done by listing identical employers, similar and identical taxpayer home addresses, similar and identical wage while withholding information and claiming dependents which resulted in additional child tax credit.

This investigation was a collaborative effort between the United States Department of Labor- Office of the Inspector General, Internal Revenue Service and Indiana Department of Workforce Development.

“Combating unemployment insurance fraud remains a high priority for the Office of Inspector General and we will continue to work with our law enforcement partners and colleagues to address it. We would like to thank the Indiana Department of Workforce Development for their support in identifying the extent of the unemployment insurance fraud committed by the defendant,” said James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigation.

James C. Lee, IRS Criminal Investigation Special Agent in Charge stated, “At the IRS, protecting taxpayer money is our top priority. There are numerous victims when it comes to refund crimes; in addition to the government, the taxpaying public also pays the price. IRS Criminal Investigation is determined to stop these false tax refund schemes and warns that participation in refund fraud schemes does not pay and those who participate will be investigated and prosecuted for their involvement.”

According to Assistant United States Attorney Gayle Helart, who prosecuted this case on behalf of the government, Sanchez faces three years of supervised release after serving his sentence.

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today his resignation from office, effective July 31, 2014. In a letter submitted to Attorney General Eric Holder this morning, Hogsett thanked his staff and reflected on his time as U.S. Attorney:

“It has been an honor to serve in this office for the last four years because I have had the privilege to do so alongside a talented group of Assistant United States Attorneys. I owe them and our tireless support staff a debt of gratitude for the dedication and resilience that has been displayed every day of my tenure…

The result of this effort has been the most exciting period in the office’s history. We have set new records for the number of defendants charged and the total number of criminal convictions. The office has led the nation in average length of sentences imposed on criminal defendants. Fiscally, annual office spending has fallen every year I have served, and is currently at a level not seen since the Bush Administration.

But numbers alone are not sufficient to describe the office’s accomplishments. Rather, the full story is told through the thousands of victims who found some sense of justice over the last four years – children who had faced horrific exploitation, grandmothers who had watched their retirement funds disappear, neighborhoods that used to live in fear of violent gangs that operated with no regard for the rule of law.”

In July 2010, Joseph H. Hogsett was nominated to serve as United States Attorney for the Southern District of Indiana. He was unanimously confirmed by the United States Senate and sworn into office on October 7, 2010.

A full-length copy of Hogsett’s resignation letter to Attorney General Holder is attached.

More Indianapolis results as state and federal prosecutor’s offices crack down on violent gun-related crime

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Thomas Montgomery, 39, of Indianapolis, has been sentenced to 66 months (five ½ years) n½ in federal prison by U.S. District Judge William T. Lawrence. Montgomery admitted to illegally possessing a firearm as a convicted felon. Montgomery’s conviction is the result of a joint prosecution effort between the U.S. Attorney’s Office and the Marion County Prosecutor’s Office.

“Three years ago, this Office pledged to federally prosecute more illegally-armed felons than ever before,” said Hogsett. “Today’s sentence supports that pledge to take off our streets the most violent criminals who terrorize our neighborhoods.”

Court documents state that on August 9, 2013, Indianapolis Metropolitan Police Department officers were dispatched to 3033 Bavarian West Dr. on a person with a gun. The caller/witness advised dispatch that Thomas Montgomery was outside in the parking lot with a gun. The caller also stated that there was a disturbance between Montgomery and the maintenance worker, and that Montgomery had pointed a gun at the maintenance worker’s head and then fled the scene in a black Chevy Suburban.

Shortly thereafter, an IMPD officer observed the Suburban registered to Montgomery and initiated a traffic stop near 34th and Galeston. The driver, identified as Thomas Montgomery, got out of the driver’s seat holding a black handgun in his right hand. Montgomery fled on foot behind the residence. Officers summoned K-9 assistance, and eventually located Montgomery hiding in the back yard in the 8800 block of Frontenac Rd, where he was taken into custody.

Officers did not locate a firearm on Montgomery, near his apprehension location or in his vehicle; therefore they summoned a ballistic K-9 unit. The K9 unit located a black semiautomatic handgun with an extended magazine lying in a near-by back yard. Montgomery was found to have previously been convicted of numerous felonies, including Criminal Recklessness, Theft, Possession of a Handgun Without a License, Possession of Cocaine, and Dealing in Cocaine, all in Marion County, Indiana.

Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 325 defendants have been charged.

According to Special Assistant U.S. Attorney (SAUSA) Thomas Lupke, who is prosecuting the case for the government, Montgomery faces three years of supervised release after his sentence. Lupke currently serves as a SAUSA for Hogsett’s office and splits his time as a deputy prosecutor with the Marion County Prosecutor’s Office where he specializes in narcotic- and gun-related cases.