Southern District of Indiana

"Operation Community Watch" prosecution allegedly involves thousands of images and videos

EVANSVILLE B Joseph H. Hogsett, the United States Attorney, announced today that a former postmaster at the Elberfeld Post Office branch entered a plea of guilty of possession and receiving child pornography. Floyd M. Thompson, age 60, of Evansville, appeared in federal court today in front of U.S. District Chief Judge Richard Young.

"Those who accept the responsibility of public trust and betray it, will be held accountable for their actions. Additionally, we are unwavering in our resolve to find and prosecute those who exploit our children," Hogsett said. "As this case shows, you are not anonymous online - if you engage in this behavior, you will be identified and you will be prosecuted."

According to charging 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 on August 13, 2013, at the Evansville home of defendant Thompson. Federal agents interviewed Thompson and took his computer equipment into custody. A preliminary forensic examination of these computers allegedly revealed thousands of images and videos of child pornography depicting young girls between the ages of 3 and 12 years old.

Acting Special Agent in Charge Kevin P. Lyons, “The FBI remains committed to protecting children from individuals that prey on their innocence.”

According to Assistant U.S. Attorney Todd Shellenbarger, who is prosecuting the case for the government, Thompson faces up to twenty years in federal prison. A sentencing date has been scheduled for August 10, 2014 at 11:00 a.m. In addition, the defendant also could be sentenced to a lifetime term of supervised release at the end of his prison term, as well as registration as a sexual offender.

This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Over a year ago, he launched "Operation Community Watch," which allows 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. In this case, these efforts were facilitated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Evansville Police Department.

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.

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.

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

INDIANAPOLIS B The United States Attorney, Joseph H. Hogsett announced this afternoon the arrest and charging of Alan S. Mizen, 59, Zionsville. Mizen served as the Chief Financial Officer for Center Township in Marion County, Indiana, from November 2001 through January 2011. Mizen now faces prosecution for Theft/Embezzlement of Federal Program Funds as the U.S. Attorney's Office has redoubled its efforts to combat, identify, investigate and root out public corruption by elected and appointed officials in Indiana through the activities of the Public Integrity Working Group.

"The message of this office has been consistent over the last two years, but bears repeating today: it doesn't matter what your politics are or what position you hold in our community," Hogsett said. "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."

A federal criminal complaint, unsealed this morning, charges Mizen with theft concerning programs receiving federal funds. The complaint alleges that Mizen set up an account with PNC Bank and deposited a check in the amount of $343,541.08 that was drawn from public funds into the PNC Bank account. Mizen then used the computerized accounting system at the Center Township Trustees Office to create a false invoice indicating that he had written the check to the “Treasurer of State.”

Mizen proceeded to transfer the funds that he deposited into the PNC Bank account to various personal accounts that he maintained. From the personal accounts, Mizen allegedly 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.

In addition to arresting Mizen, federal authorities froze a bank account and investment account that Mizen used to channel the embezzled funds. Federal authorities seized the 2009 Toyota Tacoma, diamond ring, and diamond bracelet that Mizen purchased in the Cayman Islands with the embezzled funds. Federal authorities also filed a lis pendens on his residence in Zionsville, which prohibits Mizen from transferring his interest in the real estate until the resolution of the criminal case.

Hogsett explained this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation and Indiana State Board of Accounts, with the assistance of 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. Hoosiers with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.

Federal Bureau of Investigation Acting Special Agent in Charge Kevin Lyons 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 Assistant United States Attorney Bradley A. Blackington, who is prosecuting the case for the government, Mizen could be sentenced to up to ten years in federal prison, and could also face significant fines and federal supervision for up to three years once he has served his prison term.

An indictment or complaint are 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.

U.S. Attorney continues seeing results from Violent Crime Initiative

Bloomington – Joseph H. Hogsett, United States Attorney, announced the sentencing of Courtney Pickett, 29, Bloomington for one count of conspiracy to distribute with intent to possess five kilograms of cocaine and one count of carrying a firearm in furtherance of a drug trafficking crime. Pickett was sentenced to 15 years by U.S. District Judge Sarah Evans Barker.

“When criminals band together, the damage they can inflict is much greater,” said Hogsett. “It is important to prosecute every player in the game so that career criminals don’t have a chance to repeat their attempts.”

Between November and mid-December 2011, Pickett and four other defendants conspired to break into a property they believed contained a large quantity of narcotics. Pickett illegally possessed a firearm in order to further the plan to rob the property. Local and federal law enforcement monitored the defendants’ activities and interrupted the attempted robbery on December 15, 2011.

“This office is dedicated to taking violent criminals off the streets of our Hoosier communities,” said Hogsett.

Thomas Owings, a codefendant is serving a 20 year sentence for his part in the crime at Terre Haute Federal Prison.

This prosecution was part of the United States Attorney’s Violent Crime Initiative. 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 330 firearms cases have been prosecuted. By charging these cases federally, violent felons serve at least 85 % of their sentence.

According to Assistant United States Attorney Barry Glickman, who prosecuted this case for the government, Pickett will also serve three years of supervised release after his sentence.

Hogsett continues crackdown on methamphetamine trafficking

BOONVILLE – Joseph H. Hogsett, United States Attorney, announced the indictment of a Warrick County man for possession with intent to distribute 50 grams or more of methamphetamine. Matthew Collins, 51, was indicted by a grand jury yesterday.

“Methamphetamine is a harmful drug,” said Hogsett. “Getting it off the streets and putting dealers behind bars is the best way to prevent drug-related violence in our Hoosier communities.”

Since March of this year, DEA officials have been assisting the Warrick Country Sheriff’s Office (WCSO) criminal investigations narcotic division in an investigation involving Collins. Collins is suspected of distributing pound quantities of methamphetamine in the Warrick County area.

Law enforcement began tracking Collins for his alleged drug distribution and on June 8, 2014, stopped Collins for speeding on SR 161 just inside in Indiana border in Spencer County. Deputies from the Warrick County Sheriff’s Department used their K-9 partner to determine the presence of methamphetamine in Collins’ vehicle. Field tests allegedly revealed nearly 15 ounces of crystal methamphetamine.

“Credit should go where it is due. Collaboration between federal and local levels of law enforcement helps our office do our job and take those harming Hoosiers off the streets,” said Hogsett.

Collins remains in custody at the Spencer County Jail.

According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, Collins could face 10 years to life and a $5 million fine 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.

Over 30 weapons confiscated as U.S. Attorney continues efforts to keep career criminals unarmed and off Hoosier streets

NEW ALBANY, IN – Joseph H. Hogsett, United States Attorney, today announced the indictment of Paul James Hoskins, 45, Charlestown Indiana. A grand jury indicted Hoskins on one count of felony possession of a firearm.

“This office has been vigorous in our prosecution of felons in possession of firearms,” said Hogsett. “This defendant represents the worst of the worst as far as career criminals go and it is our job to make sure these people are off the streets and not endangering the stability and peace of Hoosier communities.”

On June 16, 2014, law enforcement officials, upon suspecting Hoskins of engaging in the distribution of methamphetamine and protecting the narcotics with firearms, executed a search warrant on his residence in Charlestown. There, officers allegedly found a 9 mm handgun and multiple rounds of ammunition.

Upon further investigation, and the cooperation of an informant, it was determined that Hoskins also allegedly stored firearms at his parent’s residence, next door. Law enforcement obtained consent to search from Hoskins’ parents. During this consent search, two firearms were found in a rear bedroom. Also in this bedroom was a padlocked closet allegedly storing over 30 firearms, including a sawed-off short-barreled 12 gauge shotgun. A key for the padlocked door was found on the dresser of Hoskins’ bedroom in his own residence.

This prosecution is a result of a joint effort between the ATF (Alcohol, Tobacco, Firearms) office in Louisville, Indiana State Police, Clark County Sheriff’s Department and the Charlestown Police Department.

By federal law, it is illegal for a prior felon to own or possess a firearm. The Federal Armed Career Criminal Act further punishes an individual who possesses a firearm and has at least three prior violent felony convictions with a fifteen year mandatory minimum sentence of imprisonment.

Hoskins felony record spans both Indiana and Kentucky and includes, among others:

 Resisting Law Enforcement Causing Bodily Harm, 1993
 Fleeing & Eluding Law Enforcement, 1994
 Wanton Endangerment, 1st Degree, 1994
 Possession of Marijuana with Prior Conviction, Possession of a Concealed Handgun with Prior Conviction, 1994
 Resisting Law Enforcement, 2000
 Wanton Endangerment, 1st Degree, 2001
 Theft, 2007

“This office is dedicated to taking violent criminals off the streets and has seen great success in this goal,” said Hogsett. “I am proud of the partnerships we have forged with state and local partners combating crime in our Hoosier communities.”

This prosecution was part of the United States Attorney’s Violent Crime Initiative. 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. Additionally, federal defendants serve 85 % of their sentence.

According to Assistant United States Attorney Lauren Wheatley, who is prosecuting the case on behalf of the government, if convicted, Hoskins can serve a mandatory minimum sentence of 15 years.

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.

U. S. Attorney’s Office continues to help reduce violence in
Vanderburgh County

Evansville – Joseph H. Hogsett, United States Attorney, announced the indictment of Larry Tomlinson, 37, Evansville, today. A grand jury indicted Tomlinson on one count of possession of a firearm by a convicted felon and one count of possession of a sawed off shotgun.

“This office has seen that prior felons with firearms are bad news for the safety of Indiana,” said Hogsett. “My office will continue to do all we can to help make our Southwestern Indiana communities safe.”

On May 29, 2014, law enforcement received a tip that a customer at a local hotel had been allegedly dealing narcotics and may be in possession of a firearm. Officers observed Tomlinson leave the hotel in a car with another person driving. The two were pulled over while driving and Tomlinson allegedly contemplated fleeing before complying with the officers orders. Officers searched the driver and Tomlinson and both consented to a search of the vehicle. When officers were able to handcuff Tomlinson, they found a sawed off shotgun in the bag he was carrying, next to the vehicle.

Under federal law, it is illegal for one with a prior felony conviction to possess a firearm. Tomlinson’s felony record is as follows:

• Burglary, Vanderburgh County, March 1994
• Auto Theft and Resisting Law Enforcement, Vanderburgh County, August 1996
• Possession of Cocaine and Carrying a Handgun without a Permit, Vanderburgh County, August 1996
• Robbery and Carrying a Handgun without a Permit, Vanderburgh County, May 2001
• Possession of a Firearm by a Felon, Vanderburgh County, April 2007

Due to Tomlinson’s extensive criminal history, he is subject to the enhanced penalty as an armed career criminal which imposes a mandatory minimum sentence of 15 years.

This investigation is part of the U. S. Attorney’s Violent Crime Initiative, (VCI). Launched in 2011, the VCI produced dramatic increases in the number of gun-related charges brought federally. Since then, nearly 235 defendants have been charged.

According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, Tomlinson could face 25 years and three years of supervised release, if convicted of both charges.

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.

U.S. Attorney’s Office successfully prosecutes two inmates for their role in the murder of fellow inmate

TERRE HAUTE – Joseph H. Hogsett, United States Attorney, announced today the conviction of two men for their roles in the death of an inmate at the Terre Haute Federal Correctional Institute. William J. Bell, 38, was convicted of one count of first degree murder and Lenard Dixon, 35, was convicted of one count of accessory after the fact, following a three-day jury trial before U.S. District Judge Jane Magnus-Stinson.

“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 Hogsett.

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.

“A goal of our office is to prosecute those who have already been acquainted with the American justice system and still do not obey the law,” said Hogsett. “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 Matthew Brookman and Will McCoskey, who prosecuted the case for the government, Bell faces up to life in prison and Dixon faces up to 15 years, in addition to the time he is already serving.

Local man underreported taxes for years resulting in over $500,000 in back taxes owed to the government

INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the conviction and sentencing of a Carmel businessman by U.S. District Judge Jane Magnus-Stinson for his role in a scheme to avoid paying income taxes. Joseph C. Scott, 54, Carmel was sentenced to 6 months in a residential community center for tax evasion.

“This type of fraud affects all Hoosiers. Those who cheat the system cheat their neighbors of taxpayer dollars that could be used to positively impact the community,” Hogsett said.

Scott, a CPA, was the sole owner of JS&A, Inc., located in Indianapolis. In 2001, Scott formed a partnership with KSM Business Services, also of Indianapolis. The new partnership was called KSM Profit Advisors, LLC and was run out of Indianapolis. The partnership provided that Scott’s role, via JS&A was to provide consulting services to all clients and run the business. The business agreement stated that Scott’s company, JS&A, would receive the greatest portion of the fees in return for his role in providing services. From 2005 to 2009, Scott failed to prepare federal tax returns for his company, JS&A.

Because of his failure to file tax returns, Scott was able to manipulate and underreport a substantial portion of his income to avoid paying taxes. During the years he failed to file returns for JS&A, Scott withheld nearly $2 million in income, which resulted in nearly $600,000 in taxes owed for those years.

“Our system is based on trust – not only the trust people have for their government but the trust government has in its citizens,” said Hogsett. “When people violate that trust, it is our job to prosecute them to the full extent of the law.”

Underreporting income is one of the most prevalent ways taxpayers attempt to cheat the system. In this case, Scott was convicted of willfully defrauding the federal government by underreporting his income and using his education and training to funnel his income through a corporation he set up without reporting it to the Internal Revenue Service.

Sharon M. Jackson who prosecuted the case for the government said Scott must serve three years of supervised released, one of which is on electronic monitoring, after completing his sentence.

Hogsett continues aggressive fight against illegal firearm possession to protect Hoosiers

KOKOMO – Joseph H. Hogsett, United States Attorney, announced a sentence for Michael A. Hiers, 40, of Kokomo, on one count of felony possession of a firearm. Hiers was sentenced to seven years in federal prison by U.S. District Judge Tanya Walton Pratt.

“Taking those with prior felonies and firearms off of the streets is a top priority of this office,” said Hogsett. “If you have already been acquainted with the American justice system and still do not obey the law, we will prosecute you.”

In 2013, FBI investigators received information that an individual had posted photos to a Facebook account and a known white supremacist webpage. There were two photos, both showing Hiers in clan attire, including a hood, while holding a handgun and a machete. Based on the tattoos in the photographs and the known tattoos of Hiers, a federal search warrant was issued to search Hiers’ Kokomo residence for firearms and ammunition.

In July 2013, federal investigators executed a search of Hiers’ home and found a Bryco Jennings, 9 mm handgun loaded with ammunition, as well as additional ammunition in Hiers’ bedroom. Hiers told investigators he did own the gun but thought it did not work. He also stated he had intentions of fixing the firearm.

Hiers had prior convictions as a felon. In 1994 he was convicted of burglary in Miami County and in 1996 he was again convicted of burglary, this time in Knox County. Because of these prior convictions, federal law makes it illegal for Hiers to own or possess a handgun or firearm of any kind.

“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.

FBI Indianapolis Division Acting Special Agent in Charge Kevin P. Lyons stated, “The FBI will continue to work with our state and local partners to remove firearms from the hands of convicted felons.”

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.

Hogsett announces sentence shows success of “Operation Community Watch”

INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the conviction and sentencing of a former law enforcement officer on two counts of child exploitation. Derek D. Walton, 31, Liberty IND, was sentenced to 192 months (16 years) in federal prison by U.S. District Judge William T. Lawrence.

“Protecting the most innocent Hoosier victims is a top priority of this office. It doesn’t matter who you are; if you violate our children, you will be held accountable accordingly,” said Hogsett.

In 2011, federal law enforcement became aware of an account on AOL that was sending child pornography through email. This account was shut down by AOL, but another account was discovered and was traced to Walton. Federal agents served a search warrant at Walton’s home in August 2013. They located a laptop and thumb drive that contained a number of pornographic images and videos depicting a minor female. Agents also found a hidden camera in the living room which was found to contain additional explicit materials showing a minor female.

Walton was an employee of the Franklin County Sheriff’s Office where he was employed as a reserve Sheriff’s Deputy and worked as a jail officer. Prior to that position, he was employed by the Richmond Police Department and worked as a deputy marshal for the Laurel Police Department.

“The type of behavior in this case was deplorable. To think that those who vow to protect our community would commit such acts is saddening,” 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 investigation was a collaborative effort between the Federal Bureau of Investigation, the Indiana State Police and the Indianapolis Metropolitan Police Department.

FBI Indianapolis Division Acting Special Agent in Charge Kevin P. Lyons stated, “The FBI is committed to pursuing on-line child predators through our Innocent Images National Initiative. FBI agents and local and international task force members collaborate with our state and local partners daily in the fight against those who prey on our children.”

According to Senior Litigation Counsel Steve DeBrota, who prosecuted the case for the government, Walton was fined $5000 and must serve a lifetime of supervised release after completing his sentence.

Zionsville man allegedly robbed five banks in Central Indiana

TERRE HAUTE – Joseph H. Hogsett, United States Attorney, announced the indictment of Alan Wayne McCormick, 46, of Zionsville. McCormick was indicted on five counts of armed bank robbery.

“It is imperative that we go after those who steal peace of mind from the community,” said Hogsett. “Bank robberies put people in danger, both financially and physically.”

McCormick allegedly robbed five banks between July 2012 and March of this year. In each robbery, he followed a similar pattern and possessed a firearm or other dangerous weapon. The five banks are as follows:

• Citizens Bank, Eminence, Indiana, July 17, 2012 (Morgan County)
• First Financial Bank, (First State Bank) Poland, Indiana, September 18, 2012 (Clay County)
• Hoosier Heartland Bank, Lagoda, Indiana, August 12, 2013 (Montgomery County)
• Hoosier Heartland Bank, Linden, Indiana, January 16, 2014 (Montgomery County)
• Fountain Trust Bank, Darlington, Indiana, March 12, 2014 (Montgomery County)

Investigators from the Montgomery County Sheriff’s Department obtained video surveillance after the March 12, 2014, robbery of the Fountain Trust Bank in Darlington, Indiana. The vehicle used was a newer model amethyst gray Nisan Sentra with damage to the passenger side rearview mirror.

Investigators were led to McCormick and a warrant was served on his residence in Zionsville. He later confessed to law enforcement his involvement in the five robberies he was charged with.

This was a joint investigation with the Federal Bureau of Investigation, Montgomery County Sheriff’s Department, Clay County Sheriff’s Department and the Morgan County Sheriff’s Department.

Acting FBI Special Agent in Charge Kevin P. Lyons said, “The FBI remains committed to investigating bank robberies and bringing to justice those individuals that threaten and intimidate bank employees and citizens in our communities.”

According to Assistant U.S. Attorney MaryAnn Mindrum who is prosecuting the case for the government, McCormick faces a possible term of 25 years imprisonment and a $250,000 fine if convicted on each charge.

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 crackdown on illegal drugs and illegal gun possession

EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced the indictments of three men involved in methamphetamine trafficking. Travis Adams, 32, of Mount Vernon, David Connor, 46, of Boonville, and Joseph Isbell, 31, of Dallas, Texas were indicted on one count each of conspiracy to distribute methamphetamine. Adams was also indicted on one count of possession of a firearm by a convicted felon.

In 2010, a Drug Enforcement Administration (DEA) Task Force agent turned up evidence that Adams, Connor and Isbell were involved in interstate drug trafficking, from Texas to Indiana. Investigations into these men’s activities this year allege that Isbell was a distributor to Adams and Connor. In April 2014, Task Force agents received search warrants and allegedly found over two pounds of meth in their search. Adams and Connor were arrested.

“Going after those who transport drugs into our state and those in our state who wish to make money off of selling illegal substances is an important part of keeping Hoosiers safe,” said Hogsett.

The criminal complaint alleges after arresting Adams and Connor, Connor stated that he and Adams had returned from Missouri on the previous evening after buying methamphetamine from Isbell. Connor advised that Isbell would be making trips to Evansville in the coming days with another two pounds of crystal methamphetamine. Connor agreed to place law enforcement monitored phone calls to Isbell in order to track his movements and plan for his arrest. Once on alert that Isbell would be in town, law enforcement officers were at his planned location in order to take him into custody. Isbell was arrested at Tropicana Casino a few days after Adams and Connor. Isbell later was released on bond from state charges.

At the time of the arrest, Adams was in possession of a firearm. By law, prior felons are banned from owning or possessing firearms. Adams’ felony record is as follows:

• Possession of Precursors, Vanderburgh County, 2001
• Dealing in Methamphetamine, Vanderburgh County, 2002
• Maintaining a Common Nuisance, Vanderburgh County, 2002
• Arson, U.S. District Court, Southern Indiana, 2010
• Conspiracy to Commit Arson, U.S. District Court, Southern Indiana, 2010

This prosecution is part of the Violent Crime Initiative (VCI). 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.

A major part of VCI is keeping firearms out of felons’ hands. 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.

“I am proud of the work my office has done to ensure that drugs stay off the streets and guns are possessed only by those who can legally own them,” said Hogsett.

This case was a join investigation with the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

According to Lauren Wheatley who is prosecuting this case for the government, each defendant could serve a prison sentence of 10 years to life and up to a fine of $10 million if convicted.

U.S. Attorney’s Office successfully prosecutes Fishers man who defrauded businesses of hundreds of thousands of dollars

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the conviction of Hrong Arman Gasparian, 67, of Fishers. Gasparian was convicted of 10 counts of wire fraud after a three-day jury trial before U.S. District Judge Sarah Evans Barker.

“Fraud is theft. It takes money out of the hands of hard-working, honest Hoosiers who are just trying to make a living,” said Hogsett.

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 he would be able to secure them 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 given to Gasparian.

“I am proud to say this was a true team effort,” Hogsett said. “Together with the Federal Bureau of Investigation (FBI) and our federal and local law enforcement partners, we worked to prosecute and hold accountable an individual who preyed upon his fellow Hoosiers.”

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.

According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Gasparian’s sentence could be up to 20 years in federal prison with fines of up to $250,000 for each of the 10 counts of his conviction. He may also be sentenced to serve multiple years of supervised release. A sentencing date will likely come in the next three months. Until his sentencing, Gasparian is under a court order that restricts him from engaging in financial transactions.

Ohio man sentenced to prison for operating a fictitious investment company which bilked over $650,000 from investors

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the sentencing of an Ohio resident, to 58 months (nearly 5 years) in federal prison by U.S. District Judge Tanya Walton Pratt. David Bridges, 37, admitted guilt to charges that he devised a scheme to fraudulently obtain money from investors in order to enrich himself. He used his position as an investment advisor to solicit investors with promises that money they invested would be used for the purchase of investment and insurance products. The losses incurred by all victims total over $650,000. Several of the victims of this scheme have been long-time residents of Hamilton County, specifically, Carmel, Indiana.

This matter began in November, 2012, when Carmel Police were notified of alleged irregularities. Carmel Police then contacted representatives of the Federal Bureau of Investigation, who have led the investigation since that time.

“The United States Attorney’s Office will aggressively pursue the prosecution of those individuals who bilk Hoosier out of their hard-earned retirement funds through fraud,” said Hogsett. “Stealing the hard-earned money that Hoosiers plan to retire on is inexcusable.”

Bridges admitted that he created a bogus company, SD Capital LLC, to convince investors to purchase annuity contracts at SD Capital and/or roll over their IRA accounts maintained elsewhere to a purported IRA account managed by SD Capital. From December 2009 through April 2012, the investors, on the advice of Bridges, wrote checks to SD Capital for the investment products. Bridges deposited these checks into his own bank account.

Bridges represented to his investors that he had purchased the investment products with their money. However, Bridges instead used the money he received for his personal benefit, including the payment of personal expenses incurred through gambling and purchases at grocery stores, gas stations, and retail shops.

According to Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted the case for the government, Bridges was also sentenced to three (3) years of supervised release at the end of his prison term, and must pay over $500,000 in restitution to the victims.

This case is the result of a collaborative investigation by the FBI and Carmel Police Department.

Meeting will convene U.S. Attorneys, Department of Justice officials to discuss rising violence

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that in response to the growing violence in Indianapolis, he has organized and convened an anti-violence summit that will take place this summer. Featuring public safety leaders from across the country, the event will address proven anti-violence techniques and strategies. The summit is slated to take place in Indianapolis from September 3rd through September 5th.

“The simple fact is that we cannot banish these senseless acts of violence with a ‘magic bullet’ program or slogan,” Hogsett said. “But across the country, many cities have seen a reduction in murders while Indianapolis has struggled with the worst outbreak of violence in a generation. We must do all we can to bring those successful strategies to the streets of our city.”

Indianapolis has experienced more than 60 homicides in the first five months of the year, a near-record pace of violence. Per capita, the homicide rate for Indianapolis now meets or exceeds a number of larger metropolitan areas across the country, including Chicago and New York. Over this same period of time, the overall national trend has reflected a reduction in homicides.

Hogsett has invited dozens of Department of Justice officials and United States Attorneys from major urban areas around the country to participate in a three-day conversation about “best practices” designed to bring greater safety to Indianapolis neighborhoods. Confirmed panelists include top public safety officials from Chicago, Detroit, Philadelphia, St. Louis, Las Vegas, Seattle, Baltimore, Nashville, Buffalo, Louisville, and Gary, Indiana.

These federal prosecutors are members of the United States’ Department of Justice’s Violent and Organized Crime Committee, and possess a wealth of experience in combatting gun crime, the drug trade, and criminal activity by well-organized gangs. Presentations and panel discussions will feature proven crime prevention programs, effective enforcement techniques, as well as successful re-entry initiatives.

The summit comes as the U.S. Attorney’s Office continues to marshal federal resources to assist local law enforcement efforts in and around Marion County. This includes the continuation and expansion of efforts launched last year in response to the outbreak of violence:

• The utilization of strategic targeting and other long-term investigative techniques aimed at completely dismantling the most destructive criminal enterprises currently operating in Indianapolis.
• The coordination of a one-day statewide drug conference for representatives of federal and local enforcement agencies from across the state to promote greater effectiveness in responding to the rise of heroin abuse on the streets of our cities.
• The hiring of six more criminal prosecutors whose priority will be to coordinate increased levels of collaboration between federal and local law enforcement agencies in Indianapolis and throughout the state.
• The continued implementation of enhanced ballistic information tracking through the National Integrated Ballistic Information Network (NIBIN), which assists law enforcement in combatting the illegal trade of firearms.
• The designation of a Special Assistant United States Attorney (SAUSA) to serve as a liaison between the United States Attorney’s Office and the Marion County Prosecutor’s office, coordinating joint investigations and focusing on federally prosecuting violent crime cases in the most violent neighborhoods in the city.

Additional information on the violent crime summit will be released by the U.S. Attorney’s Office in the coming weeks.

Hogsett and Curry continue collaboration of prosecution at both a federal and local level to make Indianapolis streets safer

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced two recent sentences today for federal firearms violations that exemplify the strong working relationship between the United States Attorney’s Office and the Marion County Prosecutor’s Office, a collaboration that makes Indianapolis neighborhoods safer.

Michael Poge, 46, of Indianapolis, was sentenced to 70 months (nearly six years) and Nicholas Hines 31, Indianapolis was sentenced to 92 months (nearly eight years) in federal prison both for illegally possessing a firearm as a convicted felon.

Poge was arrested by IMPD officers in May 2013, in the 8800 block of East 41st Place when he was involved in a violent disturbance. He was in possession of a revolver loaded with three live rounds and two that had recently been discharged. Hines was arrested by IMPD officers in July 2013 when they visited Hines’ home on the near Eastside during a probation sweep. There they found a .40 caliber pistol that belonged to Hines. Officers also found a pair of pants with a holster that fit the gun, which indicated Hines was regularly carrying the weapon. Between them, the two men accumulated 14 felonies, all committed in Marion County.

“Credit should go where it is due. Marion County Prosecutor Terry Curry saw the need to improve the cooperation between his office and the United States Attorney’s Office. As part of his vision, Prosecutor Curry has since cross-designated several of his best prosecutors to screen gun cases and make thoughtful decisions about whether to prosecute repeat violent offenders in state court or in federal court. In this sense, Terry and his office have always been ‘out front’ in the challenge of ridding Indianapolis of the high level of gun violence it has experienced,” Hogsett explained.

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 have received 50% more time than they would have received in state courts and in several cases, they received over 300% higher sentences. Additionally, federal defendants serve 85 % of their sentence.

“Working closely with the Marion County Prosecutor and his staff, the U.S. Attorney’s Office will continue to pledge federal resources to help stem the tide of violent crime in Indianapolis,” said Hogsett. “Working together is the single most effective way to help make our communities safer and these sentences support that pledge by taking the most violent offenders, who terrorize our neighborhoods off our streets.”

According to Special Assistant U.S. Attorney (SAUSA) Thomas Lupke, who is prosecuting the case for the government, Poge and Hines face three years of supervised release after their 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.

Indianapolis woman sentenced to 16 months in prison for her role in nearly half million dollar theft from Chase Bank

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney announced today the sentencing of an Indianapolis woman for her role in an embezzlement scheme that lasted nearly nine years. Tami Riggles, 46, Indianapolis, was sentenced by Federal District Court Judge William T. Lawrence to 16 months in federal prison.

“Each one of us has to be accountable for our actions both in our private and professional lives,” said Hogsett. “If you steal from financial institutions, you steal from all Hoosiers and this office will hold you responsible.”

Riggles was employed as a Senior Floor Plan Operations Specialist, and responsible for transactions involving 700 automobile dealerships who used “floor plans,” a common borrowing system used by dealers to finance their vehicles. While Chase Bank employed safeguards for reconciliation to make sure dollar amounts borrowed and repaid were accounted for each day, Riggles was able to escape detection when she used a Chase Bank general internal account to steal from and to accomplish depositing money into her own personal checking account. None of the dealerships’ money was stolen.

Riggles’ theft of $458,391.00 took place between 2005 and 2013 when her scheme was detected. Riggles was stealing between $8,000 and $16,000 monthly to elevate her lifestyle which included expenditures to numerous retail outlets, restaurants, credit cards, and an online dating site. In addition to agreeing to pay restitution to her former employer, Riggles also agreed to pay $6,450 to the Franklin Youth Basketball League.

“Embezzlement is a crime that causes harm to businesses and diverts funds from their intended use. The FBI will continue to pursue those who unlawfully enrich themselves at the expense of others,” said Special Agent in Charge Robert Jones.

According to Assistant U.S. Attorney Gayle Helart who prosecuted the case for the government, Riggles will serve two years of supervised release after serving her sentence.

U.S. Attorney maintains relentless pursuit of individuals who illegally use and possess firearms to reduce violence throughout Indianapolis

INDIANAPOLIS- Joseph H. Hogsett, the United States Attorney, announced today federal charges against a man who allegedly carjacked an Indianapolis man and discharged a firearm into the dashboard of his vehicle. Jaime Martinez-Elvir, 32, was charged with carjacking and discharging a firearm during a crime of violence.

“The revolving door of justice was closed for Mr. Martinez today,” said Hogsett. “Those individuals who choose to view federal firearms laws as mere ‘suggestions’ will spend a long time in prison contemplating their actions.”

Court documents recently unsealed allege that during the early morning hours of March 31, 2013, Martinez invaded a home in the 800 block of North Sherman Drive, robbed a husband and wife at gun point of jewelry and cash, and then forced the husband and wife to drive him to a bar on the east side of Indianapolis. During the incident, Martinez fired the gun although neither of the victims was hit.

Later that same day, documents allege Martinez committed a second carjacking near Washington and Belmont. During that incident, it is alleged that Martinez forced the victim at gun point to drive an ATM to withdraw money from the victim’s ATM account. When no money was available from the ATM it is alleged that Martinez fired a shot into the dashboard of the victim’s car.

Based on that incident, a federal grand jury returned an indictment yesterday charging Martinez with carjacking and discharge of a firearm during a crime of violence.

“Carjacking is a serious crime that puts the public in danger and the FBI is committed to working with our law enforcement partners to protect the public,” stated Robert A. Jones, Special Agent in Charge of the Federal Bureau of Investigation.

This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and is the result of a collaborative investigation by the Federal Bureau of Investigation, the Department of Homeland Security Investigations and the Indianapolis Metropolitan Police Department.

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.

“Through our Violent Crime Initiative, and in working with our law enforcement partners here in Central Indiana, we’re sending a united message that violent criminals will not be tolerated and will face the full force of federal law,” Hogsett added.

According to Assistant U.S. Attorney Matt Rinka, who is prosecuting the case for the government, Martinez faces up to 15 years in prison if convicted of the carjacking, and a sentence of 10 years to life if convicted of the gun charge. He remains in the custody of the United States Marshal’s Service.

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 announces indictment and arrests of 23 defendants for methamphetamine trafficking and firearms violations

INDIANAPOLIS - U.S. Attorney Joseph H. Hogsett announced today the indictment and arrest of 23 defendants involved in a drug trafficking operation that stretched from the Mars Hill section of Indianapolis to North Vernon, Indiana and other communities in central Indiana.

"The scourge of meth has taken a heavy toll on communities in our state, and the U.S. Attorney's Office is redoubling efforts to combat organized methamphetamine activity in Southeastern Indiana," Hogsett said.

"Long term investigations, cooperatively maintained, using sensitive investigative techniques, produce significant results. This isn’t small ball. This isn’t ‘three buys and a bust.’ This is what you do when you are serious about making the quality of life in this community better."

FBI Special Agency in Charge Robert A. Jones said, "This case is another example of the power of partnerships. The FBI and state and local partners throughout central and southern Indiana have joined together with the USAO in this investigation to dismantle a drug distribution network that has plagued the community."

The main indictment charged 16 defendants with participating in the activities of a methamphetamine distribution organization. The indictment charged the following defendants with conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine:

• Donald P. Maggard, 40, of North Vernon, Indiana; • Ashley N. Wright, 27, of North Vernon, Indiana; • Jason L. Howard, a/k/a Jay, 33, of North Vernon, Indiana; • Jason D. Mantooth, 38, of Indianapolis, Indiana; • Dorothy M. Neeley, 39, of Indianapolis, Indiana; • Robert J. Holliday, a/k/a Jo Jo, 30, of Indianapolis, Indiana; • Kimberly A. Ault, 31, of Indianapolis, Indiana; • David L. Bell, 48, of Seymour, Indiana; • David Eric Chadwell of Osgood, Indiana; • George R. Nichols, a/k/a Rick, 59, of Butlerville, Indiana; • Jessica R. Parsons, 32, of North Vernon, Indiana

The indictment also charged Marsha D. Fields, 56, of North Vernon, Indiana with maintaining a drug-involved premises and the following individuals with unlawful use of a communications device:

• Danny W. Maggard, 39, an inmate at the Putnamville Correctional Facility; • Christy N. Walker, 31, of Columbus, Indiana; • Shannon M. Palmer, 36, of Indianapolis, Indiana; and
• Faris B. Keener, 31, of McMinville, Tennessee

Hogsett explained that the indictment of the 16 defendants was the product of an ongoing investigation that had already produced 7 arrests for drug trafficking and firearms violations in the Mars Hill area. Those defendants previously arrested included the following:

• Jennifer L. Gaddy, 44, of Indianapolis, Indiana, charged with three counts of methamphetamine distribution; • Logan Mediate, 20, of Indianapolis, Indiana, charged with tampering with a witness, discharge of a firearm in furtherance of a crime of violence, possession of a short-barreled shotgun in furtherance of a crime of violence, felon in possession of a firearm, and possession of a sawed-off shotgun; • Jonathan Anderson, 29, of Indianapolis, Indiana, charged with felon in possession of a firearm; • Dustin H. Pennington, 31, of Indianapolis, Indiana, charged with felon in possession of a firearm; • Dwight L. Holloway, 33, of Indianapolis, Indiana, charged with possession of heroin with intent to distribute and felon in possession of a firearm; • Justin Kincaid, 33, of Indianapolis, Indiana, charged with felon in possession of a firearm; and
• Kathleen A. Owens, 29, of Indianapolis, Indiana, charged with two counts of possession of methamphetamine with intent to distribute.

“It is difficult to know just how much methamphetamine this organization distributed into central Indiana, but their dealing stops now,” said Hogsett. “Those who peddle drugs in our Hoosier communities will have the full force of federal law to deal with.”

These charges are the result of a collaborative investigation conducted by the Federal Bureau of Investigation, the Indiana State Police, the Indianapolis Metropolitan Police Department, the Fishers Police Department, and several other local enforcement agencies.

According to Bradley Blackington, who is prosecuting the case for the government, those defendants charged with conspiracy to distribute methamphetamine face up to life in federal prison and fines up to $10 million if convicted.

Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today that Brandon Tooley, age 32, of Kokomo, has been charged by information with one count of distribution of sexually explicit material involving minors. Tooley has filed a petition to plead guilty, along with entering into a plea agreement and stipulated factual basis for the offense. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.

“The type of behavior alleged in this case exploits children and will not be tolerated by federal law enforcement,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message to criminals that they cannot hide online.”

The information alleges that between on or about August 1, 2013 and on or about October 7, 2013, Tooley sent emails to others containing visual depictions of minors engaged in sexually explicit conduct. Court documents indicate that the government has filed a forfeiture allegation identifying computer equipment used in the offense that the government will seek to seize from Tooley if he is convicted.

According to Assistant U.S. Attorney MaryAnn T. Mindrum, who is prosecuting the case for the government, Tooley faces no less than five and up to twenty years in federal prison if the Court accepts a guilty plea. Federal law also mandates that individuals convicted of child exploitation pay restitution to their victims. In addition, Tooley faces a sentence of up to lifetime supervised release, and must comply with state and federal requirements as a registered sexual offender.

This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he 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. In this case, those efforts were facilitated by the Department of Homeland Security, Homeland Security Investigations (HSI).

"The sexual exploitation of children is abhorrent and is one of the most disturbing crimes we investigate at HSI,” said Gary Hartwig, special agent in charge of HSI Chicago. "Once a pornographic image of a child is shared online, it multiplies and is virtually impossible to remove. Protecting our youth in the digital age requires us all to be vigilant."

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 two years, 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.

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

Pornography allegations against volunteer wrestling coach

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today federal child pornography charges against Christopher Rennard, 28, of Westfield. Rennard serves as a volunteer wrestling coach at Westfield High School and faces charges including, two counts of shipping or transporting by means of computer visual depictions of minors engaged in sexually explicit conduct, as well as possessing and distributing child pornography.

“When the most vulnerable of our citizens are victimized, my office will aggressively do everything in its power to protect them,” said Hogsett. “Child predators around the state are on notice; we will find you, investigate you and prosecute you with the full force of federal law.”

According to the criminal complaint affidavit, a report was submitted to the Cyber Tip Line by the National Center for Missing and Exploited Children. The report was submitted by Dropbox, Inc. and indicated that a user on their online data storage service had uploaded and stored files that contained child pornography between January 15-27, 2014. Investigators determined Rennard was the subscriber and traced the IP address to his residence in Westfield.

A federal search warrant was issued and served on Rennard’s residence on April 17, 2014 by special agents of Homeland Security Investigations and task force officers of the Hamilton County Metropolitan Child Exploitation Task Force. The affidavit alleges that Rennard was present during the search and admitted to collecting and distributing child pornography.

The affidavit further alleges Rennard would make contact with other persons interested in child pornography using an iPhone application called Omegle. Once he found someone to trade with, they would specify if they preferred boys or girls. Rennard would then post links to child pornography images and videos which could be used to access the files stored in his and other individual’s Dropbox accounts. This would make files available for viewing, downloading and copying.

According to Assistant U.S. Attorney MaryAnn Mindrum, who is prosecuting the case for the government, Rennard could face up to 20 years in prison and a $250,000.00 fine if convicted.

“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”

This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he 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. In this case, those efforts were facilitated by United States Department of Homeland Security, Homeland Security Investigations and the Hamilton County Metropolitan Child Exploitation Task Force.

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.

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 two years, the U.S. Attorney's Office successfully identified hundreds of 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 Attorney’s' 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.

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

Hendricks County man charged with illegal possession of 175 firearms, 59,000 rounds of ammunition and 35 fully automatic machineguns

INDIANAPOLIS- Joseph H. Hogsett, the United States Attorney, announced today the sentencing of a Hendricks County man on federal firearms charges. Jackie Richardson, 49, was sentenced to ten years imprisonment on one count of being a felon in possession of a firearm and one count of unlawfully possessing a machinegun.

“Never in the three and one half years that I have served as the United States Attorney have we prosecuted a felony possession case more egregious and dangerous as this,” said Hogsett. “The danger posed by the presence of an illegal gun manufacturing operation to the citizens of Hendricks County is unacceptably disconcerting.”

Richardson was arrested on December 17, 2011, by Hendricks County Sheriff’s Department (HCSD) deputies following a 9-1-1 call reporting a domestic violence incident at Richardson’s residence in Coatesville, Indiana. When deputies responded to the residence, they uncovered evidence of an illegal firearms manufacturing operation and contacted the ATF. During a joint search of Richardson’s property, ATF agents and HCSD deputies recovered approximately 175 firearms along with various firearms parts and over 59,000 rounds of ammunition. ATF experts at the Firearms Technology Branch in Martinsburg, WV, later determined that 35 of the recovered firearms were fully automatic machineguns.

At the time of his arrest, Richardson was prohibited by federal law from possessing any firearms or ammunition by virtue of his multiple prior felony convictions, including convictions in Indiana state court for felony battery and theft in January and April of 1998, respectively and a prior felony conviction for possession of a firearm by a convicted felon (SDIN) in March of 1999. Prior to being prosecuted for the most recent federal violations, Richardson was convicted in Hendricks County Superior Court of felony intimidation stemming from a domestic violence incident in December of 2011.

This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hendricks County Sheriff’s Department.

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 314 defendants have been charged.

“Through our Violent Crime Initiative, and in working with our law enforcement partners here in Central Indiana, we’re sending a united message that illegally-armed felons will face the full force of federal law,” Hogsett added. “Prior to the initiative, this office prosecuted one gun crime a month, now we are aggressively prosecuting more than two per week.

According to Assistant U.S. Attorney Matt Rinka, who prosecuted this case for the government, Richardson faces three years of supervised release following his sentence.

U.S. Attorney maintains relentless pursuit of illegal possession of weapons throughout Indiana

INDIANAPOLIS- Joseph H. Hogsett, the United States Attorney, announced today the conviction of a New Jersey man on federal firearms charges. Dennis N. VanHouten, 28, Point Jervis, NJ, was convicted at a bench trial in front of U.S. District Judge William T. Lawrence for being a felon in possession of a firearm and for illegal possession of ammunition.

VanHouten was stopped by officers from the Brownsburg Interstate Crime Enforcement Team on Interstate 70 for a traffic violation. A computer check revealed that VanHouten was wanted on a violent sexual offender felony warrant out of Orange County, New York. Officers placed VanHouten under arrest and began a search of the vehicle.

Once inside the vehicle, officers located a green storage case that contained an SKS semi-automatic 7.62 x 39 caliber rifle. VanHouten is a convicted felon and may not legally possess a firearm. Officers also located a storage case with VanHouten’s name on it secured by four pad locks in the rear of his vehicle. The container was suspicious so the Indianapolis Metro Police Department (IMPD) Bomb Squad was summoned to insure the contents did not contain explosives. Officers and agents obtained a state warrant for the container and found 1900 rounds of ammunition for the rifle. Previously, VanHouten had been convicted of “criminal sex act 2” in Cayuga County, New York in 2011.

This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Criminal Investigations Division, Indiana State Police, Brownsburg Police Department, IMPD and the Orange County, New York Probation Department.

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 314 defendants have been charged.

“Through our Violent Crime Initiative, and in working with our law enforcement partners here in Central Indiana, we’re sending a united message that illegally-armed felons will face the full force of federal law,” Hogsett added.

According to Assistant U.S. Attorney Gayle Helart, who is prosecuting the case for the government, VanHouten could face up to 10 years in federal prison and a $250,000.00 fine at sentencing. He remains in the custody of the United States Marshal’s Service. No sentencing date has been set.

Sheriff’s son provided false testimony before federal grand jury in investigation alleging excessive force by colleague

INDIANAPOLIS - U.S. Attorney Joseph H. Hogsett and the Special Agent in Charge of the Federal Bureau of Investigation Indianapolis Division, Robert A. Jones, announced the arrest of Andrew Fenwick, a/k/a “Mo”, age 24, of Greencastle, Indiana. Fenwick serves as a Reserve Deputy with the Putnam County Sheriff’s Department (PCSD) and is the son of Putnam County Sheriff Steve Fenwick.

A federal grand jury indictment, unsealed this morning, charges Fenwick with three counts of false declarations made by Fenwick before it. The indictment alleges that Fenwick provided false testimony during an investigation into alleged activity of excessive force of PCSD Deputy Terry Joe Smith. On March 4, 2014, the grand jury returned an indictment alleging that Smith had used excessive force against citizens on four occasions in his capacity as a PCSD Deputy. The charges against Smith remain pending and are currently set for trial on April 28, 2014.

The grand jury indictment alleges that Fenwick provided material false statements with respect to (1) the degree to which Fenwick used force to assist Smith in the apprehension of an individual near Moore’s Bar in Greencastle on November 6, 2011, (2) whether Fenwick had seen a police report prepared by Smith concerning Smith’s use of force against another individual at the Cloverdale Truck Stop on December 28, 2013, and (3) whether the victim of Smith’s use of force at the Cloverdale Truck Stop had struck Fenwick with a closed first before Smith used physical force against this individual.

"Just one month ago, I was here discussing the conduct of a Putnam County Sheriff’s deputy involving allegations of the mistreatment of citizens in his custody,” said Hogsett. “Interfering with an investigation will not be tolerated by this office and we will hold those who do so, fully accountable. These charges allege that Mr. Fenwick chose to lie rather than assist authorities as they investigated allegations of excessive force by a law enforcement officer who has taken an oath to ‘serve and protect’,” Hogsett asserted.

Hogsett 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 misconduct and wrongdoing by public officials in Indiana.

According to Assistant United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum, who are prosecuting the case for the government, Smith could be sentenced to up to five years in federal prison for each count, and could also face significant fines and federal supervision for up to three years once he has served his prison term.

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.

$100,000 worth of heroin destined for the streets of Indianapolis seized.
Hogsett describes U.S. Attorney’s Office continuing efforts to combat a resurgence of heroin use in Hoosier communities.

INDIANAPOLIS – In the second major drug prosecution announcement in the past two days, United States Attorney Joseph H. Hogsett revealed the indictment of four Indianapolis men for their participation in a heroin drug trafficking organization (DTO) that operated primarily in the Brightwood neighborhood on the Northeast side of Indianapolis. Charged with conspiracy to possess with intent to distribute and to distribute heroin were:

Francisco Javier Perez-Garcia, a/k/a, Tio, 36; Mario Vasquez, a/k/a, Minuto, 26; Agustin Martinez-Acosta, a/k/a, Chukky 46, and
Jeronimo Lagunes, 27.

Perez-Garcia and Vasquez were also charged with conspiracy to possess with intent to distribute and distribute methamphetamine.

“Heroin has become the scourge of our community in the past several years.” said Hogsett. “Few substances are more lethal right now. Heroin has no socio-economic or racial boundary and impacts every corner of our state. The heroin epidemic is blind to what tax bracket you happen to be in. We also are keenly aware that we can’t prosecute our way out of this problem. That is why we are redoubling efforts to bring all of our resources to bear on the root causes of these challenges.”

Search warrant affidavits allege Perez-Garcia operated a DTO at several locations in Brightwood neighborhood dealing large amounts of heroin since early 2013. His two accomplices, Vasquez and Martinez-Acosta worked closely with Perez-Garcia moving the heroin to retail dealer/customers. The affidavit further alleges heroin customers would call the “dispatch phone” at Perez-Garcia’s auto body shop at 2405 North Station Street to order the heroin. The three, along with other members of the DTO would routinely sell heroin from that location and others in the Brightwood area. It is believed the heroin shipments would come from unknown sources in Mexico, California and Houston.

Court documents allege the fourth defendant, Lagunes, was driving a Cadillac Escalade on Interstate 70 near Brownsburg on March 23, 2014, when he was stopped by the Brownsburg Police Department for a traffic violation. When interviewed by officers, his story did not match with a passenger in the vehicle concerning their origination point and destination of travel. Lagunes gave officers consent to search the vehicle and they found over a kilogram of heroin in a Gucci purse in the rear of the vehicle. The government further alleges the heroin was destined to the DTO for distribution on the Eastside of Indianapolis. The value of this heroin if distributed on the streets of Indianapolis would be approximately $100,000.00.

This indictment comes on the heels of a February 2014 trial of three Indianapolis men who were found guilty after a nine–day jury trial where defendants Brandon Lomax,. Demond Glover and Anthony Lomax were convicted of twenty criminal counts including conspiracy to possess and distribution of heroin as well as federal firearms charges. This DTO operated on the Westside of Indianapolis.

“The DEA is firmly committed to helping stem the tide of heroin use in Indiana,” said Dennis Wichern, Assistant Special Agent in Charge of the Drug Enforcement Administration in Indiana. “Our agency has increased heroin seizures by 320% from 2008-2013 and, we fully understand the severity of the epidemic in our communities.”

Heroin is made from morphine which is extracted from poppy plants. Typically the plants are grown in Asia, South America and Mexico and the heroin is then transported to the United States for illicit use. It is ingested by smoking, snorting or injecting directly into the veins of users. Heroin has become popular as opiate users find it more difficult and expensive to find prescription drugs. The devastating consequences of opiate addiction makes the user turn to a quicker and less expensive but often times deadly use of heroin.

To assist in this fight, Hogsett has directed federal prosecutors to work with the Drug Enforcement Administration and the Indiana Attorney General’s Office to aggressively investigate doctors who are operating high-volume “pill mill” practices. If they are found to have abused their prescription writing authority, they face potential state and federal prosecution, as well as the revocation of their medical licenses. He has also directed the Office to work with local authorities to seek federal funding for treatment and prevention efforts.

Other law enforcement partners who worked on the case include: the Indianapolis Metro Drug Task Force, the Indiana State Police, the Internal Revenue Service, the Immigration and Customs Enforcement Criminal Investigations Division and the Ohio State Patrol.

According to Assistant United States Attorney Michelle Brady and Assistant United States Attorney Doris Pryor, who are prosecuting the case for the government, all defendants face a mandatory minimum sentence of 10 years to life, 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 - Joseph H. Hogsett, United States Attorney, and representatives from the Indiana State Police, the Marion County Prosecutor’s Office and the Indianapolis Metropolitan Police Department (IMPD), announced today that federal charges have been filed and are being brought in furtherance of a long standing investigation named “Operation Family Ties” involving a drug trafficking operation in Indianapolis.

Hogsett announced that a federal grand jury returned an indictment charging the following individuals with cocaine trafficking:

Benigno Reyes-Contrerra, 27
Edgar Dominguez-Castillo, 25
Gerardo Baltierra, 29
Fellipe Maguellal, 22
Wade Havvard, 36
Antjuan Dyson, 36
Larry Eugene Coe, 39
Tuwanna Harney, 37
Timika Highbaugh, 39
Waimond Jackson, 53
Earnest McCain, 55

All 11 defendants have been charged with conspiracy to possess with intent to distribute a controlled substance. Today’s indictment exposes these defendants to mandatory minimum sentences and higher maximum prison sentences than they originally faced when they were charged in state court.

Beginning in March 2010, IMPD began an investigation into a cocaine drug trafficking operation the Butler-Tarkington neighborhood of Indianapolis. Detectives learned that the organization had been trafficking in cocaine for more than two years.

It is alleged that Wade Havvard, Larry Coe and a previously federally indicted individual, Marvin Golden, 35, were significant cocaine traffickers in the Butler-Tarkington area. Hundreds of telephone and text messages were sent between them consistent with drug trafficking. It is alleged they would stash the cocaine in houses around the Butler-Tarkington area then sell to other middle- level dealers who would distribute the cocaine on the northwest side of Indianapolis.

The investigation culminated in the arrest of over 40 individuals in early January 2014, at which time more than 6 kilograms of cocaine was confiscated. Also seized at the time of arrests were marijuana, nine guns, six vehicles and approximately $198,000 in cash.

United States Attorney Hogsett said, Athe alleged conduct in this case is unacceptable for our community. We seek to impose the harshest penalties on those who refuse to observe even the most basic assumptions of civil society. I have promised to seek out the worst of the worst and hold them fully accountable and based on the allegations in the indictment; these defendants justify enhanced penalties in federal court”

Hogsett further praised his local partners by saying, “I want to thank all of our law enforcement partners, particularly the Drug Enforcement Administration, the Indiana State Police, and the Indianapolis Metropolitan Police Department, for their dedication to taking these drugs off the street, and, therefore, making our neighborhoods safer. I also want to personally thank the Marion County Prosecutor’s Office for their partnership in bringing these individuals to justice.”

According to Assistant U. S. Attorney Michelle Brady, who is the lead prosecutor in the case for the government, if convicted, some of the defendants face a minimum penalty of 10 years to life. Others face 20 years to life and three defendants face mandatory life sentences without the possibility of parole.

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.

U.S. Attorney says prosecution of illegally-armed felon is part of Violent Crime Initiative

CLINTON, IN - Joseph H. Hogsett, the United States Attorney, announced today the federal sentencing of a Vermillion County man on federal firearms charges. Danny K. Hight, age 47, of Cayuga, was sentenced by U.S. District Judge William Lawrence to 70 months (5 years, 10 months) for illegally possessing a firearm as a convicted felon.

“Three years ago, this Office pledged to federally prosecute more illegally-armed felons than ever before,” Hogsett said. “Our success in that effort has been due to cases similar to what has been alleged here - collaborative investigations targeting career criminals who view our local jails as their personal revolving door.”

The indictment alleges on October 11, 2012, law enforcement found Hight to be in possession of a Mossberg 12 gauge shotgun. Hight is a convicted felon, and therefore is not legally entitled to possess a firearm. His extensive criminal history includes convictions in Vermillion County for operating a vehicle while intoxicated, residential entry and criminal recklessness. He also has prior convictions in Marion County and Hancock County on charges of forgery and burglary.

This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as Vermillion County law enforcement.

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 225 defendants have been charged.

“Through our Violent Crime Initiative, and in working with our law enforcement partners here in Vermillion County, we’re sending a united message that illegally-armed felons will face the full force of federal law,” Hogsett added.

According to Assistant U.S. Attorney Matthew J. Rinka, who is prosecuting the case for the government, Hight also must serve three years of supervised release after his prison term.

Local automobile dealer defrauds bank of nearly $200,000.00

ROCKVILLE, IND- Joseph H. Hogsett, United States Attorney announced today that federal charges have been filed against a Rockville man for one count of bank fraud. Kevin B Jacks, 61, Rockville, has been formally charged by information and has signed an agreement to plead guilty in federal court.

“Each one of us has to be accountable for our actions both in our private and professional lives,” said Hogsett. “If you steal from financial institutions, you steal from all Hoosiers and my office will hold you responsible.”

According to the information, Jacks was the president and owner of Jacks and Jacks Motor Company (JJMC) in Rockville. He bought and sold vehicles for the dealership which were financed by First Financial Bank, N.A. (First Financial). Jacks had a security agreement with First Financial on the inventory whether presently owned or later acquired. Jacks had a wholesale financing plan, commonly referred to as a “floor plan” whereby Jacks was to make timely payment to First Financial upon the sale of automobiles covered in the agreement. First Financial would regularly send an auditor to JJMC to inspect the inventory and determine which automobiles covered by the floor plan were still for sale and which had been sold.

The information alleges that on various occasions between May 2009 and May 2011, Jacks would sell automobiles covered under the plan but failed to make the required payment. To conceal the fact that these automobiles were sold, Jacks would have the owner return the vehicle to JJMC business lot so that he could fraudulently represent to First Financial and their auditors that the automobiles had not yet been sold. The government further alleges that Jacks made false statement about the location of certain automobiles which had been sold out of trust but were not present at the JJMC lot at the time of audits.

According to Assistant U.S. Attorney James Warden who is prosecuting the case for the government, Jacks faces a maximum of 10 years in prison and a $250,000 fine. No future court date has been set.

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.

Allegations of theft of unemployment insurance benefits and tax refunds

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today that Pedro Sanchez, 34, Crawfordsville, has been charged by Information with theft of government funds related to fraudulent receipt of unemployment benefits and the filing of fraudulent tax returns.

“Theft of unemployment benefits takes money from some of the neediest Hoosier families. In addition, schemes such as those alleged against Mr. Sanchez increase the cost of government to honest, hard-working Hoosier taxpayers,” said Hogsett.

Pedro Sanchez owned Video Y Discoteca El Charron (“ElCharro”) a business in Crawfordsville that operated as a Mexican grocery store and diner with a money services business enabling customers to wire money and cash checks.

The Information alleges that Sanchez, through his Mexican grocery store business, which also contained a money service business, cashed numerous IRS refund checks that were issued based on fraudulent tax returns. On some occasions, Sanchez cashed the refund check himself. On one occasion, it is alleged that a tax return dated July 12, 2010 was prepared in the name of A. Chavez and submitted to the IRS for a refund. A. Chavez did not work for the employer listed on the W-2 and the refund check in the amount of $4,556 was endorsed by Sanchez. 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 is alleged to have been received by Sanchez and others in fraudulent tax returns between approximately January 2009 and February 2011.

The tax refund scheme suspected in this investigation includes obtaining refunds for individuals using tax identification numbers listing wages that cannot be verified by employers. This scheme includes listing identical employers, similar and identical taxpayer home addresses, similar and identical wage and withholding information and claiming dependents which resulted in additional child tax credit. Many of the returns listed the filing status of “Head of Household” which is the most advantageous filing status of an unmarried person.

The Information also alleges that, beginning in March of 2010, Sanchez stole $29,000 of federal unemployment benefits. 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 her in applying for public aid. In the process of assisting her, the IDWD determined that she was receiving unemployment benefits. The individual had previously received the benefits, but at that time was not receiving them. IDWD determined that a benefits debit card was being sent to an address in Crawfordsville associated with a family member of Sanchez. While looking further into this matter, IDWD determined that multiple debit cards were being sent to the same address.

The Information further alleges that Sanchez used these debit cards and others to conduct ATM transactions without permission or authority of IDWD or the individuals in whose names the debit cards had been issued. Sanchez used the funds for his own personal use.

A person is eligible for unemployment insurance benefits if they are unemployed through no fault of their own. Upon becoming involuntarily unemployed, a worker could make a claim for benefits either by appearing in person at the IDWD office, or by submitting an application via the internet to the IDWD. This electronic application includes the person’s name, social security number, the last employer’s name, address, dates worked and reason for becoming unemployed. Once the application is approved, an account is set up and the worker would receive a debit card containing a dollar amount equal to the amount of unemployment insurance benefits due. In order to receive continuing benefits, each week thereafter, the worker is required to either appear in person or submit, via the internet to the IDWD, claim vouchers requesting additional payment of benefits. The claim voucher requires a worker to certify whether he or she had worked and received any earnings during the weekly period.

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

Hogsett’s Office maintains relentless pace to stem the tide of gun violence

EVANSVILLE - Joseph H. Hogsett, United States Attorney, announced today the sentencing of an armed career criminal and the charging either by criminal complaint or by indictment for federal firearms violations of three other men. Two of those additionally charged may also qualify as armed career criminals, if convicted.

“Gun violence continues to torment Hoosier communities. Those who choose to illegally carry firearms will be held strictly accountable and the revolving door of justice stops here and now. Evansville is a peaceful community and we intend to do everything we can to keep it that way,” Hogsett said.

Hogsett announced that, yesterday, U.S. District Court Judge Richard L. Young sentenced Derrick W. Vogt, 33, Tell City, Indiana, to 15 years in federal prison for being a convicted felon in possession of a firearm and being an armed career criminal. In August of 2013, at the time of his guilty plea, Vogt admitted to possession of a Beretta, Model 3032 Tomcat, .32 caliber pistol.

Vogt’s criminal record includes three felony burglary and four felony theft convictions as well as one felony sexual battery conviction, all in Perry County, Indiana. Vogt was subject to the enhanced penalty under the armed career criminal statutes which impose mandatory minimum sentences for person who have accumulated violent felony convictions.

In addition, Hogsett announced that a federal grand jury had returned two indictments, against other men.

The first indictment alleges Glynn Petticord, 42, of Evansville, possessed a Taurus, .45 caliber pistol, after being found in an east side Evansville hotel by United States Marshals. Petticord has four prior felony convictions for robbery, auto theft, battery and criminal recklessness, dating back to 1994.

The second indictment alleges that Jacob Roy Hammond, 22, of Dover, Tennessee, was in possession of two firearms (a Springfield Arms, .40 caliber semi-automatic pistol and a Walther, .22 caliber semi-automatic pistol) when he was located outside a hotel on the north side of Evansville by the United States Marshals. Hammond has five felony convictions for burglary and one for selling a controlled substance in Tennessee, for a total of six felonies.

Hogsett also announced the filing of a criminal complaint against Cornelius Ratliff, 29, of Evansville, for knowingly possessing a firearm as a convicted felon. On March 17, 2014, the Evansville Police Department made a routine traffic stop. Ratliff was a passenger in the vehicle. He was asked to exit the vehicle so that a search of the vehicle could ensue. Upon exiting the vehicle, Ratliff ran away and, upon being pursued, pulled a silver handgun from his waistband and aimed it at Evansville police officers.

Hogsett further observed, “if we are successful in taking all of these individuals off the streets, a total of 21 felony convictions go with them. That goes a long way toward improving the safety of communities throughout southwestern Indiana.”

Upon his arrest, a background check of Ratliff revealed a felony conviction for second degree murder as well as two felony convictions for being a felon in possession of a firearm.

This sentencing and all additional charges come as part of the U.S. Attorney’s Violent Crime Initiative (VCI). Launched in March 2011, 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 225 defendants have been charged.

According to Assistant U.S. Attorney Todd S. Shellenbarger and Assistant U. S. Attorney Lauren Wheatley, who are prosecuting the cases for the government, Hammond and Petticord face a maximum of life in prison and a $250,000 fine, based on the armed career criminal sentencing enhancement. An initial hearing will be scheduled in Evansville, Indiana, before a United States federal district court Magistrate Judge.

An indictment and criminal compliant are only charges and are 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 announces another "Operation Community Watch" prosecution

INDIANAPOLIS - U.S. Attorney Joseph H. Hogsett announced today the sentencing of Daniel Alan Jines, 37, of Whitestown, on federal child pornography charges, including 10 counts of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography. Jines was sentenced by U.S. District Judge William Lawrence to a total term of imprisonment of 680 months. (56.5 years)

“This is in essence a life term for Mr. Jines,” said Hogsett. “If anyone is this district abuses children the way he did, my office will find you and prosecute you as aggressively as the law allows.”

According to court documents, the investigation into Jines’ child pornography activity began with law enforcement detecting previously identified child pornography files being offered for download through an internet connection traced back to Jines’ home. A search of Jines’ home on February 20, 2013, uncovered a large, particularly disturbing collection of images of the sexual abuse of children, and Jines was arrested that evening for his receipt and possession of those images.

A continuing investigation uncovered that Jines had sexually abused a minor female for several years, beginning when she was as young as 8 years old. Jines videotaped a portion of that abuse, occurring when the child was 10-13 years old, between May 2008 and May 2010. The content of those videos shocked even veteran child abuse investigators.

“Approximately a year ago, this office launched Operation Community Watch, an effort to protect Hoosier children by identifying and bringing to justice those who would sexually exploit our children,” said Hogsett. “This case is a prime example of how child pornography investigations, which can often transcend state and international borders, ultimately can lead to the protection of children who may live in neighborhoods right here in Indiana. Mr. Jines’ horrific campaign of abuse fully justifies this long sentence, and is well deserved.”

This matter was investigated by Homeland Security Investigations (“HSI”), the Carmel Police Department and the Hamilton County Metro Child Exploitation Task Force.

“While we are pleased with the significant sentence imposed, no amount of time behind bars seems adequate punishment for such monstrous behavior,” said Gary Hartwig, Special Agent-in-Charge of HSI Chicago. “Daniel Jines inflicted permanent psychological, physical, and emotional scars on his young victim and deserves to spend the rest of his life in prison where he can never hurt another child. Protecting children from sexual abuse and exploitation is one of HSI’s most vital missions.”

“This is another example of why the child exploitation task force model is so important. This individual will no longer have the ability to victimize a child because highly skilled investigators from the local and federal level are able to work together with the United States Attorney’s Office to focus on these important cases. The sentence itself should serve as a warning to those out there who would prey upon our children that we are looking for you, and we will find you. Our greatest hope is that the attention this case gets will serve as a beacon to victims who continue to suffer in silence, so that they know there are people and organizations here to help them,” said Captain Andy Dietz, Director Hamilton County Metro Child Exploitation Task Force.

According to Assistant U.S. Attorneys A. Brant Cook and MaryAnn Mindrum, who prosecuted the case for the government, Jines’ sentence also includes lifetime supervised release and a $5000.00 fine.

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.

Scott County bank allegedly robbed by Pikeville, Kentucky man

SCOTTSBURG - Joseph H. Hogsett, United States Attorney, announced today that Jason Lee Robinson, 34, of Pikeville, Kentucky, was charged by Information with one count of bank robbery following an investigation by the Federal Bureau of Investigation and the Scottsburg, Indiana, Police Department.

“Protecting Hoosier communities is one of the top priorities of my office,” said Hogsett. “Violence will not be tolerated and those who chose to commit criminal acts will be held accountable.”

The Information alleges that on June 20, 2013, Robinson robbed the Westview branch of the Scott County State Bank located at North Michael Drive in Scottsburg, Indiana. Court documents further allege that Robinson entered the bank branch and handed the teller a note that said, “this is a robbery, give me the money in the top drawer, no die (sic) pack, no talking.” The teller handed Robinson the money and he left the bank with over $1,300.

The government further alleges that law enforcement agents viewed video surveillance from near-by businesses and observed a man matching Robinson’s description get into a Honda Minivan and drive away. An anonymous caller advised the Scottsburg Police that the individual in the video may be Robinson and the vehicle he was in belonged to his grandparents in Pikeville, KY.

On July 5, 2013, Robinson was stopped by law enforcement officials near Phoenix, Arizona while driving the Honda Minivan. Officials there detained Robinson and he was brought back to Indiana to face federal charges.

According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Robinson faces a maximum of 20 years in prison and a $250,000 fine. An initial hearing will be scheduled in New Albany, Indiana, 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.

Photocopied bills circulated in Louisville, Jeffersonville and New Albany areas

CLARKSVILLE - Joseph H. Hogsett, United States Attorney, announced today that Johnathon Alan Frantz, 22, of Clarksville, Indiana, was charged by federal grand jury indictment with making, possessing and passing counterfeit United States currency following an investigation by the United States Secret Service, with assistance from the Jeffersonville and Clarksville Indiana Police Departments.

“Maintaining the integrity of our currency is a priority of my office,” said Hogsett. “Those who chose to compromise our economy with fake bills will be held accountable.

The indictment alleges that between July 7, 2013 and November, 18, 2013, Frantz produced counterfeit Federal Reserve Notes using a color copier. Frantz then used the counterfeit notes he produced to purchase goods including gift cards and debit cards to obtain change in the form of genuine United States currency. He operated this scheme at various retail outlets and restaurants in the Clarksville, New Albany, Corydon and Louisville areas. In total, Frantz passed nearly $7,000.00 in counterfeit bills.

According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Frantz faces a maximum of 20 years in prison and a $250,000 fine. An initial hearing will be scheduled in Evansville, Indiana, before a U.S. Magistrate Judge.

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.

Counselor had illegal arsenal of four dozen guns, more than ten thousand rounds of ammunition

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Dr. Bruce E. Jones, Ph.D., age 66, of Anderson, has been sentenced to 100 months (over eight years) by U.S. District Judge Tanya Walton Pratt for illegally possessing firearms and ammunition. The defendant is a previously licensed family and addiction counselor in Madison County.

“Thanks to the tireless efforts of prosecutors and our law enforcement partners, we have brought to justice a person whose total disregard for the rule of law was a danger to this community,” Hogsett said. “This case represents exactly what our Violent Crime Initiative is all about – collaborating across jurisdictions to make Central Indiana a safer place to live and work.”

FBI Special Agent in Charge Robert A. Jones said, “Felons are prohibited from possessing firearms and the FBI will vigorously pursue individuals that violate the law."

An investigation of Jones was launched by the Federal Bureau of Investigation in 2010, and search warrants were executed in May of that year. Investigators found evidence of federal firearms violations at three different properties owned by Jones. This included two locations in Madison County, as well as a cabin in rural Montana. The FBI was assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as local law enforcement agencies.

All told, those search warrants revealed an illegal arsenal of four dozen firearms and 14,000 rounds of ammunition. Jones was not entitled to possess these weapons due to his 1984 conviction for dealing in a controlled substance. The defendant served three years in prison for that crime, but later became a practicing counselor with a doctorate degree.

This sentencing comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI). Launched in March 2011, 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 225 defendants have been charged.

According to Assistant U.S. Attorney Bradley Shepard who prosecuted the case for the government, Jones also must forfeit 47 firearms, pay a $12,000 fine and will serve three years of supervised release after his sentence. Jones is also scheduled to go to trial in June on federal health care fraud charges.

More results of U.S. Attorney’s Violent Crime Initiative

EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today Basil Kamali, 27, of Evansville, Indiana, was sentenced to 48 months by U.S. District Chief Judge Richard L. Young following his guilty plea to knowingly receiving a firearm with the intent to commit a robbery.

“Holding violent criminals who illegally possess firearms accountable is one of the top priorities of my office,” said Hogsett. “The revolving door of justice for Mr. Kamali stops today with this sentencing.”

Kamali admitted at his change of plea hearing held in January of this year, that on January 4, 2013, Kamali was preparing to commit a robbery and needed a firearm. He arranged the meeting with an individual to make a purchase at a Walmart on South Red Bank Road.

On the evening of January 4, 2013, ATF agents and detectives from the Evansville Vanderburgh County Drug Task Force (JTF) set up surveillance and observed Kamali. An undercover agent and detective made contact with Kamali and showed him a firearm and ammunition. Kamali informed the undercover agent he could do “something tonight” and get the agent the money for the gun. Kamali indicated he was going to rob some Adope boys.” Kamali then left with the firearm and ammunition and was apprehended immediately thereafter. Kamali is a convicted felon and was on state parole for burglary and attempted armed robbery.

This matter was invested by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Evansville Police Department and is part of Hogsett’s Violent Crime Initiative. Launched in March 2011, 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 225 defendants have been charged.

According to Assistant U.S. Attorney Lauren Wheatley, who prosecuted the case for the government, Judge Young also ordered Kamali to service a period of 3 years on supervised release upon his release from imprisonment.

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 Raymond Barnes, 32, of Indianapolis, has been sentenced to 37 months (over three years) in federal prison by U.S. District Judge Jane Magnus-Stinson. Barnes admitted to illegally possessing a firearm as a convicted felon. Barnes’ 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, on July 13, 2013, Indianapolis Metropolitan Police Officers responded to a call of gunshots being fired in the 3800 block of North Boulevard Place on the City’s Northside. When officers arrived, they found Barnes walking away from the scene and detained him. While searching Barnes, officers located a loaded cartridge magazine in his pants pocket and placed him under arrest. Shortly after arresting him, Barnes escaped and fought with officers, injuring one and sending the officer to the hospital.

Additional responding officers located spent shell casings and four live rounds in the area of the shooting. A short time later, officers obtained a search warrant for Barnes’ vehicle which was parked nearby. In the vehicle, officers found a Keltee, SUB 2000, .40 caliber rifle with a jammed round in the chamber. The magazine found in Barnes’ pocket fit the rifle.

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 225 defendants have been charged.

“Credit should go where it is due. Marion County Prosecutor Terry Curry saw the need to improve the cooperation between his office and the United States Attorney’s Office. As part of his vision, Prosecutor Curry has since cross-designated several of his best prosecutors to screen gun cases and make thoughtful decisions about whether to prosecute repeat violent offenders in state court or in federal court. In this sense, Prosecutor Curry has always been ‘out front’ in the challenge of ridding Indianapolis of the high level of gun violence it has experienced,” Hogsett explained.

According to Special Assistant U.S. Attorney (SAUSA) Thomas Lupke, who is prosecuting the case for the government, Barnes 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 gun-related cases.

Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the sentencing of an Anderson resident, to 70 months (nearly 6 years) in federal prison by U.S. District Judge Tanya Walton Pratt. Richard Zachary Gardner, 23, admitted guilt to charges that he received child pornography on his personal computer. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.

“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”

In August 2012, a detective with the Indiana State Police (ISP) was conducting undercover investigations into the internet sharing of child pornography. The ISP detective downloaded files from a computer that he later learned to be Gardner’s computer. The files downloaded by the detective contained images of child pornography.

On November 26, 2012, detectives with the Indiana State Police and Special Agents with the Department of Homeland Security, Homeland Security Investigations, went to Gardner’s residence in Anderson, and were granted consent to enter and search the residence. Law enforcement located a laptop computer inside the residence. A forensic investigation has revealed hundreds of videos and images of child pornography on the laptop including depictions of sexual abuse against children younger than age twelve and sadistic and masochistic conduct. Gardner admitted to downloading and receiving the images of child pornography located on the laptop.

According to Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted the case for the government, Gardner was also sentenced to ten (10) years of supervised release at the end of his prison term, and must comply with state and federal requirements as a registered sexual offender.

This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he 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. In this case, those efforts were facilitated by the Indiana State Police Department and the Department of Homeland Security, Homeland Security Investigations.

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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Seventh Circuit rules that certain violations of Indiana’s Domestic Battery Statute qualify as a
“Violent Felony” Under the Armed Career Criminal Act

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the United States Court of Appeals for the Seventh Circuit’s decision in United States v. Joseph Johnson recently affirmed that certain violations of Indiana’s domestic battery statute, I.C. § 35-42-2-1.3, qualify as a “violent felony” under the Federal Armed Career Criminal Act, 18 U.S.C. § 924(e)(2)(B). This decision resolves a long-standing debate whether domestic battery in the presence of a child under the age of 16 qualifies as a “violent felony.” As such, violators face significantly stiffer penalties than they would otherwise face.

“No relationship deserves the use or threat of physical violence, said Hogsett. “This court decision adds tools to our prosecution strategies to help keep victims safe from their attackers.”

The Federal Armed Career Criminal Act punishes an individual who possesses a firearm and has at least three prior violent felony convictions with a fifteen year mandatory minimum sentence of imprisonment. Prior to this decision in Johnson, there was no precedent stating that certain violations of Indiana’s domestic battery statute are considered “violent felonies” under the Act.

On September 12, 2013, Joseph Johnson, age 35, Indianapolis, Indiana, was sentenced by the Honorable William T. Lawrence, United States District Court Judge, to fifteen years imprisonment for possessing a firearm by convicted felon. Johnson has an extensive criminal history in Marion County, including violent felony convictions for robbery, resisting law enforcement, and domestic battery in the presence of a child under the age of sixteen. Johnson’s domestic battery conviction was particularly violent.

As described by the United States Attorney’s Office at Johnson’s sentencing hearing, Johnson repeatedly punched his victim in the face, threw a buckle at her head causing a laceration, forced her to the floor, and laid on top of her all night while pouring water on her face to keep her awake. Johnson’s children were present to witness this abuse.

Johnson appealed his sentence. On February 26, 2014, the Seventh Circuit Court of Appeals affirmed Johnson’s sentence, finding that Indiana’s domestic battery statute is a “violent felony.”

According to Assistant United States Attorneys MaryAnn T. Mindrum and Cynthia J. Ridgeway, who together prosecuted this case for the government and argued the government’s position on appeal, the public is now safe from Johnson, a violent armed career criminal, who will serve his fifteen year sentence in federal prison.

Hosting today’s announcement is the staff at the Julian Center, the largest domestic violence services provider and family justice center in Indiana. For more than 39 years, its mission has been to provide the services victims need to recover and build a life absent of abuse. The Julian Center provided invaluable testimony, research, and statistics at Johnson’s sentencing hearing as to dangers and risk to domestic violence victims, and broader testimony on the cycle of violence inherent in domestic battery offenses. Jennifer Reister, Director of Non-Residential Services at The Julian Center testified that “domestic violence is the number one nonfatal cause of injury to women in the United States.”

“We are grateful that our years of work with, and service to, victims of domestic violence allowed us to provide the expertise to support the Court’s finding,” said Catherine O’Connor, president and CEO of The Julian Center. “The work on this case is just one of the many ways we seek to serve victims throughout our community.”

The Marion County Prosecutor’s Office further conveyed the impact of domestic battery on Hoosier victims by providing compelling statistical evidence at the sentencing hearing regarding the prevalence of domestic battery convictions in Marion County.

Also present for the announcement is Laura Berry, Executive Director of the Indiana Coalition Against Domestic Violence, an advocacy group helping to prevent domestic violence. “The 7th Circuit Court of Appeals has just concurred with our long held belief that felony domestic battery is a crime of violence and not just an interpersonal matter,” said Berry.

Hogsett and Jones dedicate more resources to investigation/prosecution

EVANSVILLE – Joseph H. Hogsett, the United States Attorney and Robert A. Jones, Special Agent in Charge of the Federal Bureau of Investigation Indianapolis Division, announced today a further expansion of investigation and prosecution of instances of public corruption in Hoosier communities or counties. Both the United States Attorney’s Office and the FBI will continue to make protection of the public trust one of their most significant priorities in the Evansville area and through southwestern Indiana.

Just this week, numerous criminal complaints and federal grand jury indictments have been filed as part of this increased commitment. A Putnam County Sheriff’s Deputy was charged with use of excessive force and a Greencastle City Council member was charged with perjury and making false statement to federal law enforcement officials. The head of the Henry County Department of Child Services and New Castle Community School Board member, former Senior Project Manager for the City of Bloomington was the subject of a 24 count Criminal Complaint for allegedly embezzling $800,000 in public monies.

“Today, I am proud to reaffirm our Public Corruption Working Group,” Hogsett said. “This coordinated effort is historic, in terms of having a singular focus on such an important issue – the integrity of our public offices and officeholders.”

In April of 2012, Hogsett announced the formation of the U.S. Attorney’s Office’s Public Integrity Working Group (“PIWG”), a collaborative effort between federal, state and local law enforcement agencies to rid Indiana of the “culture of corruption” that all too often rears its ugly head.

Since its creation, the PIWG has charged 30 public officials for various crimes committed at the local, state and federal levels. 10 of the 30 charged are scheduled for trial in this upcoming year. Individual defendants include two former Indianapolis city councilors, the former deputy chief of the Marion County Prosecutor’s Office, local police officers and sheriff’s deputies, township level officials, employees of the Indiana Bureau of Motor Vehicles, as well as employees of the Internal Revenue Service and the United States Postal Service.

“Our message has been consistent, but bears repeating: it doesn’t matter what your politics are or who you know,” Hogsett noted. “If you violate the public trust, this Working Group will find you, will investigate you and the U.S. Attorney’s Office will then prosecute you to the fullest extent of the law.”

“In spite of the significant success of our efforts against public corruption, we must remain ever vigilant. That is why today the FBI and United States Attorney’s Office is making the commitment to add even more resources to this endeavor.”

“There is no acceptable level of corruption or abuse of power. To this end, earlier this year, the FBI created a new Public Corruption and Civil Rights squad that will conduct more focused efforts on these violations,” stated FBI Special Agent in Charge Robert A. Jones.

Jones further stated, “Of the over 300 violations of federal criminal law investigated by the FBI, few are more important than civil rights. Color of law violations are especially egregious because they erode the community’s trust. The vast majority of police officers are well-trained, professional and exceedingly careful with the use of force. Those few that violate their oath to protect and serve will be held accountable.”

Alongside the additional resources pledged by the FBI, Hogsett announced that the United States Attorney’s Office will devote more prosecutors to bring alleged violations of the public trust to justice.

The Working Group is ably led by the U.S. Attorney’s Office’s Senior Litigation Counsel Bradley Blackington and Steven DeBrota. The lead investigative agency, the FBI, is led by Supervisory Special Agent Mark Mahon. These individuals have been assisted significantly by representatives of the Internal Revenue Service, the United States Department of Labor, the Indiana State Police, the Office of the Indiana Inspector General and the State Board of Accounts.

Hogsett acknowledged the critical role that whistleblowers often play in prosecutions of public corruption. He urged anyone with information relating to criminal activity to contact the U.S. Attorney’s Office public corruption hotline at (317) 229-2443.

“Very often, public corruption prosecutions can be traced back to one anonymous tip,” Hogsett added. “We encourage anyone with knowledge of such behavior to contact the Working Group through this hotline.”

Senior Project Manager alleged to have embezzled over $800,000 from Bloomington taxpayers

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that federal criminal charges have been filed against a former City of Bloomington Senior Project Manager. Specifically, Justin Wykoff, 43, has been charged with 24 counts of embezzlement and one count of conspiracy. Two other accomplices, Roger D. Hardin, 51, and his son, Zachary, 25, both of Bedford, have also been charged.

It is alleged that the three men bilked hundreds of thousands of dollars from public works projects by submitting and approving fraudulent invoices. Wykoff was arrested early this morning at his home by federal agents. The Hardins were also arrested and face charges of conspiracy to commit a federal crime.

The criminal complaint alleges that from May 13, 2011 to February 14, 2014, acting as the Manager of Engineering Services and, thereafter, as a Senior Project Manager for the City of Bloomington, Wykoff approved false invoices which caused the City to pay more than $800,000 for work on concrete projects that was never completed at all or actually done by other construction companies. In furtherance of this scheme, the co-conspirators sent false invoices to the City for payment to Reliable Concrete Construction (RCC), a company owned by the Hardins. Once paid by the City, the money was then deposited into an account held by Roger and Zachary Hardin.

The complaint further alleges that the Hardins would then make cash payments to Wykoff. Invoices were presented and paid at least 24 times over a two and one half year period. Wykoff received thirty-three percent (33%) of each fraudulent invoice. The cash returned to Wykoff were alleged kickbacks for his approval of the invoices. The case involved projects for concrete work to be performed on Rogers Street and College Avenue. The investigation is ongoing and the final amount of loss has not yet been determined.

These arrests come at a time when the United States Attorney’s Office and the Federal Bureau of Investigation have significantly increased efforts to root out public corruption. In April of 2012, Hogsett announced the formation of the U.S. Attorney’s Office’s Public Integrity Working Group (“PIWG”), a collaborative effort between federal, state and local law enforcement agencies to rid Indiana of the “culture of corruption” that all too often rears its ugly head.

Since its creation, the PIWG has charged 30 public officials for various crimes committed at the local, state and federal levels. Ten of the 30 charged are scheduled for trial in this upcoming year. Individual defendants include two former Indianapolis City-County Councilors, the former Chief Deputy Prosecutor of the Marion County Prosecutor’s Office, local police officers and sheriff’s deputies, township level officials, employees of the Indiana Bureau of Motor Vehicles, as well as employees of the Internal Revenue Service and the United States Postal Service.

“Our message has been consistent, but bears repeating: it doesn’t matter what your politics are or who you know,” Hogsett noted, “if you violate the public trust, our investigators will find you, will investigate you and the U.S. Attorney’s Office will then prosecute you to the fullest extent of the law.”

FBI Special Agent in Charge Robert A. Jones stated, “Contract cheating in the form of bribery and conspiracy is public corruption that violates the trust of the community and unfairly burdens honest taxpayers. The FBI will continue to work with our law enforcement partners to preserve the integrity of public contracting.”

According to Steven DeBrota, Senior Litigation Counsel for the United States Attorney’s Office and who is prosecuting the case for the government, Wykoff could face up to 10 years on each count if convicted. The Hardins could face five years if convicted.

The investigation is being conducted by the FBI and the Bloomington Police Department, with assistance from the Monroe County Prosecutor’s Office.

A complaint is only a charge and not evidence 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.

Henry County DCS employee arrested for perjury and lying to federal agents

INDIANAPOLIS– Joseph H. Hogsett, the United States Attorney, announced today that the former local director of the Indiana Department of Child Services (“DCS”) and member of the New Castle Community School Corporation’s school board has been charged by criminal complaint with one count of perjury and one count of making a materially false statement.

Michael Fleming, 58, of New Castle, has been charged for his role in allegedly lying in front of a federal grand jury and to federal agents who were following up on a criminal complaint previously filed against Darrell Hughes by the U.S. Attorney’s Office. Specifically, Hughes is charged with three counts of sexual exploitation of a child and attempted exploitation of a child. It is alleged that Hughes made contact with boys who he would have met at an alternative school operated by the New Castle School system. The alternative school is commonly referred to as North Campus.

As part of its mission, DCS receives and investigates allegations of inappropriate behavior victimizing children. Also it normally maintains records of such investigations. It was, therefore, predictable for investigators to seek to determine if DCS had records of any such allegations of inappropriate behavior by Hughes.

The criminal complaint pertaining to Fleming unsealed this morning alleges that on February 4, 2014, agents from the U.S. Immigration and Customs Enforcement, Homeland Security Investigations (“HSI”) went to Fleming’s office in New Castle to further the investigation of Hughes. Agents served Fleming with a subpoena to testify in front of the grand jury. At that time, the agents asked Fleming whether he knew that Hughes had been arrested. He acknowledged that he did. When asked if he had ever heard complaints of alleged misconduct or inappropriate behavior by Hughes, Fleming said no. The agents soon left the DCS office and asked Fleming to call with any follow-up information.

The complaint further alleges that on February 18, 2014, Fleming testified in front of the federal grand jury for the Southern District of Indiana. During that testimony Fleming stated that he was familiar with Hughes because of counseling services that Hughes provided to children but was not aware of any complaints related to Hughes before his arrest.

On February 24, 2014, federal agents were contacted by legal counsel for DCS and informed that Fleming had been terminated from his position as local DCS director for encouraging a DCS subordinate employee to make false statements in the Hughes investigation. The DCS subordinate employee reported to supervisors that a complaint has been made against Hughes on at least one occasion and Fleming, indeed, knew of this complaint. Fleming then encouraged that subordinate employee to make untruthful statements in the Hughes investigation. After his grand jury testimony, Fleming told the same employee that he gave inaccurate or incomplete information to the grand jury stating, “I didn’t tell them anything, I guess I told a little white lie, if anyone asks, don’t say anything.”

“Interfering with an investigation will not be tolerated by this office,” said U.S. Attorney Hogsett. “But when the crime involves the exploitation of Hoosier children and lying by a public official, it is even more egregious.”

"These charges allege that Mr. Fleming chose to lie rather than assist authorities as they investigated allegations of child sexual exploitation that took place under his watch,” said Gary Hartwig, special agent-in-charge of HSI Chicago. “The defendant betrayed the public trust by placing his own self-interest above the needs of the young victims in this case. HSI works tirelessly to protect innocent children from sexual predators, and we will hold those who attempt to interfere with a criminal investigation accountable for their actions.”

According to U.S. Attorney’s Office Senior Litigation Counsel Steven DeBrota, Fleming could face up to 13 years’ in federal prison if convicted on both charges and be fined up to $500,000.

This case has been jointly investigated by HSI and the Hamilton County Child Exploitation Task Force.

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

Deputy used excessive force on citizens on four occasions

TERRE HAUTE - U.S. Attorney Joseph H. Hogsett and the Special Agent in Charge of the Federal Bureau of Investigation Indianapolis Division, Robert A. Jones, announced this afternoon the arrest and indictment of Terry Joe Smith, a/k/a T.J., age 37, of Greencastle, Indiana. Smith serves as a Deputy with the Putnam County Sheriff’s Department and is also a member of the Greencastle Common Council.

The federal indictment, which was unsealed this morning, charges Smith with four counts of federal civil rights violations. The indictment alleges that Smith used excessive force against citizens on four occasions in his capacity as a Putnam County Sheriff’s Deputy. These incidents occurred near Moore’s Bar in Greencastle, on West Stardust Road in Cloverdale, at the Lazy Acres trailer park in Greencastle, and at the Cloverdale Truck Stop.

The allegations contained in the indictment include Mr. Smith’s use of a Taser against an individual after that individual had already been restrained; punching another individual in the face after restraint; throwing yet another individual on the ground after the individual had been handcuffed, driving a knee into the person’s back while secured, remaining handcuffed and prone on the ground; and, finally, throwing a female to the floor and forcing her outside of a truck stop, placing her face down into lava rocks in below freezing temperatures without proper clothing and holding her down for an extended period of time.

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

"Our message has been consistent over the last year, but bears repeating today: it doesn't matter to me what your politics are or what position you hold in your community," Hogsett said. "If you violate the public trust, our Public Integrity Working Group will find you, will investigate you and the U.S. Attorney's Office will then prosecute you to the fullest extent of the law."

“There is no acceptable level of corruption or abuse of power. To this end, earlier this year, the FBI created a new Public Corruption and Civil Rights squad that will conduct more focused efforts on these violations,” stated FBI Special Agent in Charge Robert A. Jones.

Hogsett 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.

FBI Indianapolis Division Special Agent in Charge Robert A. Jones stated, “Of the over 300 violations of federal criminal law investigated by the FBI, few are more important than civil rights. Color of law violations are especially egregious because they erode the community’s trust. The vast majority of police officers are well-trained, professional and exceedingly careful with the use of force. Those few that violate their oath to protect and serve will be held accountable.”

According to Assistant United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum, who are prosecuting the case for the government, Smith could be sentenced to up to ten years in federal prison for each count, and could also face significant fines and federal supervision for up to three years once he has served his prison term.

Hogsett acknowledged the critical role that whistleblowers often play in prosecutions of public corruption. He urged anyone with information relating to alleged criminal activity to contact the U.S. Attorney's Office public corruption hotline at (317) 229-2443.

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.

Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"

INDIANAPOLIS B Joseph H. Hogsett, the United States Attorney, announced the sentencing of Avon resident William Donald Horner, age 58, to 70 months in federal prison after his admission of guilt to charges that he possessed child pornography. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.

“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”

FBI Special Agent in Charge Robert A. Jones stated, "The distribution of child pornography over the internet is not a harmless, non-violent, victimless act. I am pleased that our relationship with our state and local law enforcement partners produced this sentence and I am confident that, together, we will continue to use every technique in our arsenal to investigate, locate, arrest, prosecute and imprison anyone involved in these acts."

On September 2, 2012, an abandoned computer containing child pornography was located at Horner’s previous residence in Indianapolis. On October 24, 2012, detectives with Indianapolis Metropolitan Police Department sought and were granted a search warrant for Horner’s current residence located in Avon, Indiana. Detectives located a laptop computer inside Horner’s office. A forensic investigation revealed hundreds of videos and images of child pornography on the laptop, including depictions of sexual abuse against children younger than age twelve.

According to Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted the case for the government, Horner was also sentenced to lifetime supervised release at the end of his prison term, and must comply with state and federal requirements as a registered sexual offender.

This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he 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. In this case, those efforts were facilitated by the Federal Bureau of Investigation, the Indianapolis Metropolitan Police Department, Indiana State Police, and the Indiana Internet Crimes Against Children Task Force.

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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Assistant United States Attorney Winfield Ong honored for public corruption trial

INDIANAPOLIS- Joseph H. Hogsett announced today a member of the U.S. Attorney’s Office has received the prestigious Director’s Award from the Executive Office of United States Attorneys. Winfield D. Ong, a 25 year veteran of the U.S. Attorney’s Office received the award for his work in the Tim Durham trial.

Ong, prosecuted Tim Durham, James Cochran and Rick Snow on a white collar fraud case in the Southern District of Indiana, resulting in the largest white collar fraud sentence imposed in the district and brought justice to the approximate 5,000 victims who lost over $200,000,000. Durham, Cochran, and Snow were convicted of conspiracy to commit wire fraud and securities fraud, wire fraud, and securities fraud. The defendants “loaned” the investor funds to themselves and their financially unsuccessful companies without the investors’ knowledge. The investigation involved the seizure and subsequent sale of Durham’s art and classic car collection. Pre-trial litigation involved Durham’s unsuccessful efforts to suppress incriminating conversations intercepted during the wiretap of his cellular telephone. Following a two-week jury trial, Durham, Cochran, and Snow were convicted. Durham was sentenced to fifty years incarceration, Cochran to twenty- five years, and Snow to ten years.

“I could not be more proud of an outstanding employee like Winfield Ong,” said Hogsett. “He personifies all that is good about public service and makes me proud to be associated with this office.”

Winfield Ong, 55, is a native of Evansville, Indiana, attended DePauw University for his undergraduate degree and Lewis and Clark University in Portland, OR, for his law degree. Winfield and his wife Jennifer have three children and live in Indianapolis. He enjoys outdoor activities which include cycling, tennis, hiking, snow skiing and kayaking.

The Director’s Award honors employees from U.S. Attorney’s offices around the country who have supported the mission of their office and distinguished themselves through extraordinary professional achievements and excellence. Mr. Ong was selected from nearly 1000 nominees nation-wide

Former law enforcement officer charged with production of child pornography as part of “Operation Community Watch”

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today Derek D. Walton, 31, of Liberty, has filed a petition to plead guilty to two counts of child exploitation through the production of child pornography. Hogsett said that Walton’s request to plead guilty, along with entering into a plea agreement and stipulated factual basis for the offense, comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.

“Working together with our federal, state and local law enforcement partners we are committed to holding child predators accountable,” said Hogsett. “Regardless of your position of power or trust, perpetrators who sexually exploit our children will be found and will be prosecuted.”

“The FBI does not tolerate the sexual exploitation of children and will dedicate all available resources to ensure their safety,” said Special Agent in Charge Robert Jones. “Anyone can help in the fight against child sexual exploitation by reporting instances of child pornography to NCMEC’s Cyber Tip Line at 1-800-843-5678”.

At the time of his arrest, Walton had been a law enforcement officer in eastern Indiana for nearly a decade. Walton was a reserve sheriff’s deputy at the Franklin County Sheriff’s Office from 2004 until his arrest. Walton was also a reserve deputy and jail officer with the Union County Sheriff’s Office at the time of his arrest. Prior to those positions, Walton was employed by the Richmond Police Department and served as a deputy marshal for the Laurel Police Department.

On November 25, 2012, Walton used the email account indianacowboy24@aol.com to distribute two images of child pornography. AOL terminated Walton’s account the next day. Walton accessed his AOL account from the Franklin County Security Center approximately 29 times between October and November of 2011.

Between January 3 and 16, 2011, Walton used the personal email account, indianacowboy24@yahoo.com to exchange several emails with another child exploitation offender. Walton and this offender traded child pornography images and videos over email, and in these emails Walton discussed his interest in child pornography and history of collecting and trading child pornography. Federal law enforcement officers later obtained these emails in the course of an investigation of another child exploitation offender.

As a result of the investigation, federal agents served a search warrant at Walton’s home in Liberty, Indiana on August 16, 2013. During the search, agents located a thumb drive hidden behind a mirror in the main bedroom of Walton’s home and a small video camera hidden in a can in the living room. The thumb drive and camera were found to contain seventeen still images and two videos depicting a nude girl between 13 and 14 years old showering and changing clothes while being secretly recorded by video recorders hidden by Walton. Walton created the videos in approximately November, 2012. On December 18, 2013, Walton was charged with two counts of child exploitation for production of the two videos.

According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney Zachary A. Myers, who are prosecuting the case for the government, Walton faces no less than fifteen and up to sixty years in federal prison if the Court accepts a guilty plea. Federal law also mandates that individuals convicted of child exploitation pay restitution to their victims. In addition, Walton faces a sentence of up to lifetime supervised release, and must comply with all state and federal requirements for registration as a sex offender.

This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he 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. In this case, those efforts were facilitated by the Federal Bureau of Investigation, the Indiana State Police, the Indianapolis Metropolitan Police Department, the Indiana Internet Crimes Against Children Task Force, as well as the Franklin County Sheriff’s Department.

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 two years, 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.

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

Daviess County woman to serve a decade in prison for methamphetamine sales

EVANSVILLE - Joseph H. Hogsett, United States Attorney, announced today that Ruby Ramsey, 56, of Daviess County, Indiana, was sentenced to 120 months (10 years) imprisonment by U.S. District Chief Judge Richard L. Young for conspiracy to distribute methamphetamine and money laundering.

“Dealing drugs and violence seem to go hand-in-hand, in our Hoosier communities,” Hogsett said. “Making our neighborhoods safer by putting the worst of the worst in federal prison is one of my top priorities.”

Ramsey pleaded guilty to the charges on January 23, 2014. At the time of her guilty plea, Ramsey admitted that she was involved in sending parcels containing methamphetamine to southwestern Indiana and distributing large amounts in the Pike County area. She also deposited approximately $3,000 at a bank in Washington, Indiana from proceeds of methamphetamine sales.

This case was the result of an investigation by the Drug Enforcement Administration and the Internal Revenue Service.

According to Assistant U.S. Attorney, Lauren M. Wheatley, who prosecuted the case for the government, Judge Young also imposed 5 years of supervised release.

TERRE HAUTE– Joseph H. Hogsett, the United States Attorney, announced that Aeron Curtis Bush, 39, an inmate of the United States Penitentiary at Terre Haute, pled guilty to possession of 15 homemade contraband weapons, commonly referred to as “shanks” in a prison setting.

“Protecting our federal prison employees is a top priority of this Office,” said Hogsett. “We will not allow inmates to get the upper hand in the Bureau of Prisons.”

On August 25, 2012, officers at the penitentiary stopped Bush to conduct a random visual search. Upon searching Bush’s clothes, officers noticed homemade knife sheaths sewn into the inside of both his shorts and underwear. An officer then contacted the unit officer in Bush’s unit to secure Bush’s cell so it could be searched for weapons.

Officers searched the cell and located several pairs of shorts with sheaths sewn into the groin area. Upon inspection of the lower locker it was discovered that the rivets and bolts had been removed from the lower floor plate. Under this floor plate, 15 homemade metal and plastic weapons were discovered, along with multiple pieces of unsharpened metal. Bush was the only inmate assigned to this cell at the time.

Bush is currently imprisoned after being convicted of drug trafficking offenses in the Western District of Texas. His scheduled release for that conviction would have been May, 2018.

According to Assistant U.S. Attorney James M. Warden who is prosecuting the case, Bush faces an additional five years in prison upon sentencing.

Ohio man operated a fictitious investment company which bilked over $650,000 from investors

INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that an Ohio man has been charged with devising a scheme to fraudulently obtain money from investors in order to enrich himself by using his position as an investment advisor broker to solicit investors with promises that money they invested would be used for the purchase of investment and insurance products.

David Bridges, 37, Cincinnati, OH, had his initial appearance in court today in front of a federal magistrate judge where he waived indictment and indicated his desire to enter a plea of guilty. The losses incurred by all victims total over $650,000. Several of the victims of this scheme have been long-time residents of Hamilton County, specifically, Carmel, Indiana.

This matter began in November, 2012, when Carmel Police were notified of alleged irregularities. Carmel Police then contacted representatives of the Federal Bureau of Investigation, who have led the investigation since that time.

“The United States Attorney’s Office will aggressively pursue the prosecution of those individuals who bilk Hoosier out of their hard-earned retirement funds through fraud,” said Hogsett. “Stealing the hard-earned money that Hoosiers plan to retire on is inexcusable.”

It is alleged that Bridges created a bogus company, SD Capital LLC, to convince investors to purchase annuity contracts at SD Capital and/or roll over their IRA accounts maintained elsewhere to a purported IRA account managed by SD Capital. It was further part of the alleged scheme that the investors, in reliance on the advice of Bridges, wrote checks to SD Capital for the investment products. Bridges deposited these checks into his own bank account.

It is further alleged Bridges represented to his investors that he had purchased the investment products with their money. However, Bridges instead used all of the money he received for the Investment Products for his personal benefit, including the payment of personal expenses incurred through gambling and purchases at grocery stores, gas stations, and retail shops, in a manner materially contrary to the representations and promises he had made to the investors.

Assistant Special Agent in Charge of the Indianapolis FBI Office, Kevin P. Lyons said, “The FBI is dedicated to stopping white collar crime and protecting victims of investment fraud."

MaryAnn T Mindrum, who is prosecuting the case for the government said, Bridges could face up to 20 years in prison and a fine of up to 250,000. Bridges remains in the custody of the United States Marshal Service. No future court date has been set.

This case is the result of a collaborative investigation by the FBI and Carmel Police Department.

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

Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"

INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the sentencing of Rockville resident Bradley M. Vandivier, age 28, to 10 years in federal prison after his admission of guilt to charges that he possessed child pornography and illegally accessed a protected computer. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.

“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”

“The Federal Bureau of Investigation is committed to pursuing on-line child predators through our Innocent Images National Initiative,” said FBI Special Agent in Charge Robert A. Jones. “FBI agents and local and international task force members collaborate with our state and local partners daily in the fight against those who prey on our children.”

On March 15, 2013, detectives from the Indiana State Police were checking for compliance with Indiana’s sex offender registry at the residence of Vandivier on Erie Street in Rockville. Detectives asked the defendant if they could look around his house, and Vandivier invited them inside but informed them he was going to let his dogs out first. Rather than let his dogs out, however, detectives observed the defendant enter a room and close the door.

After calling Vandivier out of the room and conducting further investigation, detectives located a laptop computer inside the room, hidden under a blanket at the foot of a chair. It was later revealed that the defendant had been utilizing a neighbor’s wireless internet network in an effort to obtain child pornography. A forensic investigation has revealed hundreds of videos and images of child pornography on the laptop, including depictions of sexual abuse against children younger than age seven.

According to Assistant U.S. Attorney Zach Myers, who prosecuted the case for the government, Vandivier was also sentenced to lifetime supervised release at the end of his prison term, and must comply with state and federal requirements as a registered sexual offender.

This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he launched AOperation 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. In this case, those efforts were facilitated by the Federal Bureau of Investigation, the Indiana State Police, the Indiana Internet Crimes Against Children Task Force, and Parke County law enforcement.

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 two years, 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.

Bookkeeper sentenced to 21 months after stealing nearly $150,000 from local business

INDIANAPOLIS – The United States Attorney, Joseph H. Hogsett, announced today that Cindy L. McDaniel, age 42, of Boonville, was sentenced to 21 months in federal prison by U.S. District Judge Richard L. Young following her guilty plea to bank fraud and filing false tax returns. The suspected embezzlement was reported to law enforcement and investigated by the United States Secret Service and the Internal Revenue Service’s Criminal Investigation Division.

“When those in positions of trust cheat on their taxes, it affects all Hoosiers,” said Hogsett. “We take these crimes seriously and have made them a priority in this office.”

“All Americans have a duty to pay their fair share,” IRS Criminal Investigation Special Agent in Charge, James Lee stated. “The prosecution of Ms. McDaniel and others who conceal income and evade taxes is a vital element in maintaining the confidence in our tax system.”

McDaniel pleaded guilty to the offense immediately before sentencing. At the time of her guilty plea, McDaniel admitted that between June 1, 2009, and July 4, 2011, she was employed as a bookkeeper and office manager for Concrete Pavers, Inc. She used unique user names and passwords to access the company’s bank account, she then deposited the money into her personal checking account and that of her husband. As a result of her actions, approximately $149,000 earmarked for the purpose of paying employee’s withholding tax was never properly deposited or claimed on her individual tax returns.

According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young ordered McDaniel to serve a period of four years of supervised release after release from imprisonment. Judge Young also ordered McDaniel to pay restitution in the amount of $149,000 to Concrete Pavers and $29,033 to the Internal Revenue Service. ###