Eastern District of Missouri

St. Louis, MO – Lawrence Jerel Higgins, 29, St. Louis, MO, was sentenced to 54 months in prison on multiple charges of using social security numbers of others to conceal his criminal history while obtaining employment with information technology companies.

According to court documents, Higgins had been convicted of fraud prior to January 16, 2016. In order to conceal his criminal history from prospective employers, Higgins used fictitious social security numbers as well as the social security number and date of birth of his brother to obtain employment with two information technology (IT) companies.

 

As early as January 16, 2016, Higgins used his brother’s social security number and date of birth to obtain employment with an IT company. Since he and his brother have similar names, Higgins use of his brother’s identifying information concealed Higgins’ criminal history in the company’s routine background check. Higgins also used a social security card with his brother’s number to fulfill the federal government’s employment verification requirements. During his employment, the company had problems using the identifying information Higgins provided. Higgins responded to their queries by falsely claiming that he made a mistake when he wrote the number ending in 8776, and his number ended in 8777. When a problem arose with the new number, Higgins made another false statement saying that his number ended in 8775 rather than 8776 or 8777. Higgins failed to return to work after providing the third social security number.

 

After abandoning the first employment, Higgins applied with another IT company using the number ending in 8775. After they offered him employment, Higgins claimed that he had mistakenly used the wrong number on his application. Since the background checks was based upon the false information, the second employer was unaware of Higgins’ criminal history.

 

Lawrence Jerel Higgins pled guilty in April to four counts of social security fraud and three counts of aggravated identity theft. He appeared today for sentencing United States District Judge Catherine D. Perry.

 

This case was investigated by the Social Security Administration Office of Inspector General. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.

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Gwendolyn Hampton, 38, of St. Louis pleaded guilty to tax evasion. She appeared in federal court in St. Louis this morning before Judge Ronnie L. White who accepted her plea and set her sentencing for November 15th.

 

According to her plea agreement, Hampton ran her daycare business, Hampton Academy, which had nearly $2.4 million dollars in revenue between 2009 and 2013 with a single bank account. Pulling more than $1.3 million dollars from the account in cash and cashier’s checks during that time, Hampton admitted to evading between $100,000 and $250,000 in federal income taxes.

 

At sentencing, Hampton faces up to five years’ imprisonment and a fine of up to $100,000. Additionally, restitution, interest and penalties will be ordered in favor of the United States.

 

The case was investigated by the St. Louis office of the IRS Criminal Investigation Service.

 

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St. Louis, MO – Carol J. Dotson was arrested yesterday on an Indictment charging her with wire fraud as part of an embezzlement scheme from her former employer.

 

According to the Indictment, from July 2003 to February 2017, Doston embezzled more than $2 million dollars from a commercial real estate property management company in Olivette, Missouri where she was the office administrator. Dotson wrote multiple checks to herself, withdrew large sums of cash to spend on elder care for her mother, mortgage payments, home renovations, home cleaning services, law services and shopping at local stores.

 

Dotson, 70, of St. Louis, Missouri, was indicted by a federal grand jury on August 9th on one felony count of wire fraud.  If convicted, Dotson faces up to 20 years imprisonment, a fine of $250,000 or both. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

This case was investigated by the Federal Bureau of Investigation with assistance from the Olivette Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.

 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

St. Louis, MO – Dr. Yev Gray was sentenced to 90 months in prison and ordered to pay $6,974,895.00 in restitution related to the submission of false reimbursement claims for non-rendered podiatric services.

 

According to court records, Dr. Yev Gray was the owner and president of Aggeus Healthcare, headquartered in Chicago, Illinois, which provided podiatry services to residents of long- term care facilities. As of September 2015, Aggeus was operating in at least 16 states. In Missouri, Aggeus contracted with podiatrists to provide services in eleven facilities, with seven of the facilities located in the cities of Bourbon, Hannibal, Maryland Heights and Poplar Bluff, Missouri.

 

According to court records, Dr. Gray created an electronic medical record (EMR) system, which automatically inserted into patient records, diseases and symptoms that the patients did not have. Dr. Gray also pressured Aggeus podiatrists to provide unneeded services, such as Doppler studies, the incision and drainage of abscesses, and the removal of calluses. Some of the podiatrists complied, provided the unneeded services, and signed the false treatment notes; others refused. Despite repeated complaints from patients, nursing homes, and some of their podiatrists, Dr. Gray and his co-defendants continued to create false patient records and to bill for medically unnecessary services. From 2009 to September 2015, Medicare paid Aggeus Healthcare millions of dollars based on the false reimbursement claims submitted by Aggeus.

 

Yev Gray, 49, Chicago, IL, pled guilty on May 12, 2017 to one felony count of conspiracy to commit healthcare fraud and one felony count of making false statements relating to health care matters.

 

Natalie Gray, a lawyer and the wife of Dr. Gray, is currently serving a one-year prison term for her role in the health care fraud conspiracy. The CEO of Aggeus and four Aggeus podiatrists are awaiting sentencing.

 

This case was investigated by the U.S. Department of Health & Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorneys Dorothy McMurtry, Gwendolyn Carroll, and Gilbert Sison are handling the case for the U.S. Attorney’s Office.

Nicholas Baldwin, 35, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.

 

Kenneth Gooch, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.

 

Cedric Jennings, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of one or more firearms.

 

Marlon Williams, 45, was indicted by a federal grand jury for felon in possession of a firearm.

 

Anthony Young, 44, was indicted by a federal grand jury for felon in possession of a firearm.

 

Joseph A. Tolcou, 26, pled guilty to one felony count of felon in possession of a firearm.

 

Robert Earl Davis, 28, pled guilty to one felony count of felon in possession of a firearm.

 

Carl L. Winston, 51, pled guilty to one felony count of felon in possession of a firearm.

 

Sandy Griffin, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.

 

Deangelo H. Young, 24, pled guilty to one felony count of felon in possession of a firearm.

 

Lorenzo Waller, 40, was sentenced to 120 months in prison for possession of a stolen firearm.

 

Melvin C. Christian, 35, was sentenced to 102 months in prison for felon in possession of a firearm and possession with intent to distribute cocaine base and heroin.

St. Louis, MO – Darren Small, 51, and Jayna Small, 40, husband and wife of Kinloch, MO, have entered pleas of guilty to charges in connection with their theft of funds from the Kinloch Fire Protection District.

 

Jayna Small was President of the Board of Directors of the District. While she was President of the Board, she and her husband Darren Small, who was Chief of the Kinloch Fire Department and Mayor of the City of Kinloch, conspired to divert funds from the District’s bank account for their own personal use, including to purchase clothing, food, liquor, cigarettes, and other items. They also used funds from the District to pay for their personal household utility bills. Jayna Small also admitted that she diverted funds from the District by writing a check from the District’s bank account in the amount of $7,200.00 and using the funds from the check to pay for the funeral expenses of a relative.

 

Darren Small appeared today before United States District Judge Catherine D. Perry and pled guilty to one count of conspiracy to commit access device fraud and one count of access device fraud. Sentencing has been set for October 25, 2017.

 

Jayna Small appeared before Judge Perry on July 24, 2017 and pled guilty to one count of conspiracy to commit access device fraud and one count of interstate transportation of money obtained by fraud. Sentencing has been set for October 17, 2017.

 

Conspiracy to commit access device fraud carries a maximum penalty of five years in prison and/or a fine of up to $250,000, or both. Access device fraud and interstate transportation of money obtained by fraud each carry a maximum penalty of ten years in prison and/or a fine of up to $250,000, or both.

 

This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Ramon “Trey” Luina III, 42, Chesterfield, MO, pled guilty today to one charge of mail fraud in connection with his embezzlement of approximately $2.8 million from CMS Communications Inc. Luina appeared today before United States District Judge John A. Ross. Sentencing is set for November 2, 2017.

 

According to court documents, Luina wrote checks from CMS to himself and other entities for personal benefits such as the construction of his lake house, vehicles for private use, professional services, rent for other business ventures not related to CMS, vacations, and credit card payments. Luina used CMS funds, via wire transfers and ACH payments, to make payments to his personal credit cards and invoices related to construction on his lake house. Luina also created fictitious vendors and listed these companies as consultants to CMS. Luina then directed payments, for fictitious work, to the vendors as another route to direct funds from CMS to Luina. Additionally, Luina fraudulently increased his payroll salary which was received via direct deposit. This, in turn, falsely inflated his 401k match and bonuses. Additionally, Luina falsely took partnership disbursements for CMS Partnership although he never completed the process of partnership.

 

In total, Luina embezzled over $2.8 million from CMS for his personal benefit, and the benefit of others, during the relevant timeframe.

 

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigations. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.

 

St. Louis, MO – Denise Rea Barner appeared today before United States District Judge Rodney W. Sipple and entered a plea of guilty to fraudulently using her employer’s debit card for personal gain.

According to court documents, from July 1991 to February 25, 2016, Barner was an employee of the Robert L. Kyle Center Home for Semi-Independent Living Inc. She was named as a “Director” of the Kyle Center in about November of 2004 and her duties included general accounting.

 

Beginning in about November 2007 and ending in February 2016, Barner falsely and fraudulently used the Kyle Center debit cards to make unauthorized personal purchases and ATM withdrawals. The Kyle Center sustained a loss of between $95,000.00 and $150,000.00.

 

Barner, 54, Rolla, Missouri, pled guilty to one count of access device fraud. Sentencing has been set for October 20, 2017.

Access device fraud carries a maximum penalty of 10 years and/or a fine of up to $250,000.00 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Rolla Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.

Dominick Brooks, 29, was indicted by a federal grand jury for felon in possession of a firearm.

 

Robert Cooper, 46, was indicted by a federal grand jury for felon in possession of a firearm.

 

Olugbenga Folarin, 27, was indicted by a federal grand jury for felon in possession of a firearm.

 

Anthony Kirksey, 30, was indicted by a federal grand jury for felon in possession of a firearm.

 

Joseph Lee Miles, 31, was indicted by a federal grand jury for felon in possession of a firearm.

 

Michael Nunley, 41, was indicted by a federal grand jury for felon in possession of a firearm.

 

James Cortes Smith, 33, was indicted by a federal grand jury for felon in possession of a firearm.

 

Christopher Starks, 36, was indicted by a federal grand jury for felon in possession of a firearm.

 

Chester Wilkerson, 56, was indicted by a federal grand jury for felon in possession of a firearm.

 

Cameron Bryant, 22, was indicted by a federal grand jury for felon in possession of a firearm, possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.

 

Kirk K. Darden, 23, was indicted by a federal grand jury for possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.

 

Jalen C. Sherrell, 21, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime.

 

 

Steven Gains, 26, pled guilty to one felony count of felon in possession of a firearm.

 

Glenn Hamer, 35, pled guilty to one felony count of felon in possession of a firearm.

 

Deshaum L. Ceruti, 42, pled guilty to one felony count of felon in possession of a firearm.

 

Cary Washington, 46, pled guilty to one felony count of felon in possession of a firearm.

St. Louis, MO – Mario Washington, 24, of Chicago, Illinois was sentenced to 24 months imprisonment for his role in the November 26, 2016 smash and grab theft of Chanel handbags from the Saks Fifth Avenue department store at Plaza Frontenac.

 

According to the plea agreement, Washington acted as the getaway driver and was waiting in the parking lot while 12 individuals entered the store, smashed fixtures and shelves and made away with numerous Chanel handbags. Other handbags were damaged in during the theft.

 

In addition to his term of imprisonment, Washington faces revocation of his Illinois state probation for drug offenses in Cook County, Illinois. Judge Audrey Fleissig also ordered that Washington serve three years supervised release after prison, forfeit his interest in the stolen goods and any other items seized by law enforcement, and pay $159,000 in restitution along with his co-defendants.

 

The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (Il.) County Sheriff’s Department, the Montgomery (Il.) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

 

 

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Stephonne Wilder, 21, was indicted for being a felon in possession of a firearm.

Rodney Morgan, Jr., 37, pled guilty to one felony count of felon in possession of a firearm and one felony count of possession with intent to distribute heroin.

Hillford Turner, 37, pled guilty to one felony count of felon in possession of a firearm.

James Bell, 29, pled guilty to one felony count of felon in possession of a firearm.

William A. Anthony, 42, pled guilty to one felony count of felon in possession of a firearm.

Devon Branch, 23, pled guilty to one felony count of felon in possession of a firearm.

Donald Dyson, 27, pled guilty to one felony count of felon in possession of a firearm.

Kendreal Graham, 51, pled guilty to one felony count of possessing a gun in furtherance of a crime of violence and one felony count of kidnapping.

Demetrius A. Simmons, 34, pled guilty to one felony count of felon in possession of a firearm.

James Holman, 50, was sentenced to 120 months in prison for being a felon in possession of a stolen firearm.

Carlos Champion, 34, was sentenced to 36 months in prison for being a felon in possession of a firearm.

Rodney E. Lewis, 33, was sentenced to 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime.

Jeffrey F. Emily, 51, was sentenced to 24 months in prison for being a felon in possession of a firearm.

Jermiha Lea, 28, was sentenced to 48 months in prison for being a felon in possession of a firearm.

Eric T. Hill, 35, was sentenced to 24 months in prison for felon in possession of a firearm.

St. Louis, MO – Mark Q. Stafford was sentenced to 51 months in prison on charges of mail fraud and filing a false tax return in connection with a large-scale investment fraud arising out of his company, the Stafford Financial Firm.

 

According to court documents, Stafford, who was also a minister at New Birth Powerplex Ministries in North St. Louis, falsely represented to clients of the Stafford Financial Firm that their funds would be placed with Quest Financial Holdings or Gain Capital Group, which Stafford sometimes misspelled “Gain Capitol Group.” In truth and in fact, Stafford did not open any accounts at Quest Financial Holdings or Gain Capital Group in his clients’ names. Instead, Stafford, in some cases, did not deposit the clients’ funds with either Quest Financial Holdings or Gain Capital Group, and in others, he deposited their funds into his own accounts at Gain Capital Group where he then used those funds for his own personal benefit. Stafford obtained approximately $1.26 million in proceeds from approximately 31 victims and caused an actual loss to those victims in the approximate amount of $1.08 million.

Stafford, 53, of Florissant, Missouri, pled guilty in March to mail fraud and filing a false tax return for the 2010 tax year that failed to disclose the income he had illegitimately taken from his investors. Stafford also admitted to failing to file any tax return for the 2011 and 2013 tax years. He appeared today for sentencing before United States District Judge Henry E. Autrey.

The case was investigated by the Internal Revenue Service, the U.S. Postal Inspection Service and the Missouri Secretary of State’s Office. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Malachi Duncan a/k/a “Demarcus Brewster” pled guilty to charges of student loan fraud and aggravated identity theft. Duncan appeared today before United States District Judge John A. Ross.

According to court documents, Duncan fraudulently used the pedigree information of co-conspirator “Demarcus Brewster” to enroll and gain admission as a full-time student during the 2013-2014 school year at Jefferson College in Hillsboro, MO. As part of the scheme, Duncan fraudulently used Brewster’s identity to obtain federal financial aid, student housing, and on-campus employment. Duncan ultimately was arrested in Memphis, Tennessee where he used an alias to fraudulently enroll as a student at the University of Memphis.

Duncan, 32, a former resident of Hillsboro, Missouri, pled guilty to one count of conspiracy to commit student loan fraud and one count of aggravated identity theft. Sentencing has been set for October 24, 2017.

Duncan faces a statutory mandatory two-year term of imprisonment for aggravated identity theft. also faces a maximum possible penalty of 5 years and/or a fine of up to $250,000.00 for conspiracy to commit student loan fraud. The penalty imposed for aggravated identity theft must run consecutive to the penalty imposed for conspiracy to commit student loan fraud. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the United States Department of Education, the Office of the Inspector General/Social Security Administration, the United States Marshals Service, the Hillsboro Police Department, the Jefferson County Sheriff’s Department, and the Jefferson College Campus Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.

 

St. Louis, Missouri: The United States Attorney’s Office for the Eastern District of Missouri announced today that the United States, Reliant Care Group, Reliant Care Management Company, Reliant Care Rehabilitative Services, and a number of Reliant affiliated skilled nursing facilities (Reliant) reached a civil settlement that will resolve the United States' claims against Reliant under the False Claims Act for knowingly submitting false claims to Medicare for providing unnecessary physical, speech, and occupational therapy to nursing home residents.

According to the United States’ allegations, from January of 2008 through April of 2014, Reliant provided unnecessary physical, speech and occupational therapy to nursing home residents who had a relatively high level of independence and who were residing in a skilled nursing facility primarily because of a psychiatric condition. The United States alleged that Reliant provided the unnecessary therapy and then sought the inflated reimbursement from Medicare influenced by its own financial considerations. The United States further alleged that some Reliant Care Rehabilitative Services management pressured therapists to provide therapy to residents even when the therapists believed that the therapy was not medically necessary.

As part of the settlement, Reliant will repay the United States $8,368,878.

Reliant has also entered into a five-year Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG). Pursuant to the terms of the Corporate Integrity Agreement, Reliant must comply with a number of reporting obligations to ensure that Reliant remains compliant with Federal health care program requirements.

Today's settlement sends a message to those who seek to take advantage of the Medicare program. "Health care fraud is a major and increasingly serious problem that costs taxpayers millions in lost and wasted dollars while depriving vulnerable beneficiaries of the care and support they need," said Special Agent in Charge Steven Hanson from HHS-OIG. "Every dollar that we save or recover allows us to better serve those who really need and deserve our help. We will continue to aggressively investigate these cases in an effort to eliminate the corruption in our health care system."

This civil settlement is part of ongoing efforts by the Department of Justice and the United States Department of Health and Human Services to recover funds diverted from the Medicare Trust Account and is the result of the combined work of the U.S. Attorney=s Office for the Eastern District of Missouri, HHS-OIG, and the Federal Bureau of Investigation.

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St. Louis, MO – Angela Huskey, 51, De Soto, MO, pled guilty today to one charge of mail fraud in connection with her embezzlement of approximately $1.6 million from the Grandview R-2 School District. Huskey appeared today before United States District Judge Rodney W. Sippel. Sentencing is set for October 13, 2017.

 

According to court documents, Huskey worked for Grandview for more than 20 years, being elevated to the position of business manager in 2009. In court today, Huskey admitted that she embezzled no less than $1.6 million from the school district during that time, falsifying the school district’s records to conceal her crimes. In some cases, Huskey admitted, she concealed her embezzlement by inflating the reported wages for other employees of the school district, causing those individuals to pay excess taxes to the Internal Revenue Service. As a result, those individuals paid an additional $13,368.28 in income taxes they did not in fact owe.

 

The crime to which Huskey pled guilty carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.

 

St. Louis, MO – Kathleen Essick, 35, St. Louis, MO, pled guilty today to one charge of wire fraud as part of a scheme to defraud her employer. Essick appeared today before United States District Judge Ronnie L. White. Sentencing is set for September 27, 2017.

 

According to court documents, Essick was the executive assistant to a principal at an investment firm in Clayton. That executive traveled frequently. During his many absences from the area, Essick paid his personal bills and was given the authority to write checks on the executive’s personal account in order to pay those bills. From January 2015 through June, 2016, Essick wrote a series of unauthorized checks for her personal benefit on that account. She deposited many of the checks into her personal account at Commerce Bank and spent the stolen money. Esscik spent some $34,700.00 of the stolen funds at the David Yurman jewelry store in Frontenac Plaza. She pled guilty to wire fraud involving a debit/wire purchase in the amount of $5,500.00 occurring at that store in May, 2016.

 

It was determined that Essick stole $176,600.00 as part of her scheme.

 

Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James Crowe is handling the case for the U.S. Attorney’s Office.

 

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St. Louis, MO – Tricia Siems, 35, Fenton, MO, pled guilty today to one charge of wire fraud as part of a scheme to defraud her Webster Groves employer, Rex Encore LLC. Siems appeared before United States District Judge Henry E. Autrey. Sentencing is set for September 26, 2017.

 

According to court documents, Siems was a bookkeeper for Rex Encore which is a holding company with a portfolio of investments including an automobile dealership and the Marion Miners minor league baseball team in southern Illinois. She was responsible for paying the bills of Rex Encore and keeping the books. Starting in 2010 and continuing up to January 2016 when she left the business, Siems wrote a series of unauthorized checks and made a series of unauthorized debit/wire transactions on the Rex Encore account at First Clover Leaf Bank in Edwardsville, IL, all for her personal benefit. She then made false entries in the business’s QuickBooks in order to conceal her scheme. Siems pled guilty to wire fraud involving a debit/wire transaction made in January, 2016, in which she made an online payment from the Rex Encore account to her Chase credit card account in the amount of $5,500.00. She booked that expenditure as a payment on the Rex Encore medical insurance.

 

It was determined that Siems stole $209,486.23 as part of her scheme.

 

Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James Crowe is handling the case for the U.S. Attorney’s Office.

 

 

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Tamara Jones,  St. Louis, MO,  pleaded guilty to embezzling more than $30,000 from a disabled veteran between 2014 and 2015.  According to the plea agreement, Jones stole the money from a financial account of A.W., a disabled veteran for whom she had been appointed fiduciary through the United States Department of Veterans Affairs. Jones was to spend A.W.’s money only for his benefit, and Jones was to be compensated by the VA.

 

Jones pleaded guilty to one felony count of embezzlement by a Veteran’s fiduciary and faces a sentence of up to 5 years imprisonment, a fine of $250,000 or both. Restitution of the embezzled funds is also mandatory. Chief Judge Rodney W. Sippel accepted Jones’ plea and set her sentencing for September 22, 2017.

 

This case was investigated by the U.S. Department of Veterans Affairs – Office of the Inspector General.

St. Louis, MO – Alvin Wilson, St. Louis, MO, admitted to stealing from an organization that receives federal funds.

 

According to his plea agreement, from 2012 through December 31, 2016, Wilson was employed as a security officer for the St. Louis Public Library. The Library received funds from the federal government through a grant program. At the same time, Wilson was employed as a Deputy Sheriff for the St. Louis County Sheriff’s Office. Wilson’s duty hours at the Library were typically from 6:00 a.m. until 3:00 p.m. Tuesday through Friday, and from 8:00 a.m. until 6:30 p.m. on Saturday. Wilson falsely reported hours worked at the Library and received payment from the Library based on the falsely reported work hours. He repeatedly and regularly left his duty post at the Library for significant intervals of time in the middle of his duty hours to handle work assignments for the Sheriff’s Office. Wilson falsely reported his work hours at the Library in that he claimed entitlement to pay for hours when he well knew that he was not working at the Library, but instead was working at the Sheriff’s Office or was at home. With his plea, Wilson agreed that the loss to the Library exceeds $95,000.00.

 

Judge Rodney Sippel, who accepted Wilson’s guilty plea, set a sentencing date of September 22, 2017.

 

Theft from an organization that receives federal funds carries a maximum penalty of not more than 10 years in prison and/or fines up to $250,000 or both. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – David E. Schultz, 50, of Saint Louis County, Missouri, was indicted on two counts of wire fraud. According to the Indictment, Schultz induced victims into giving him or his son money or merchandise in exchange for services he claimed capable of providing or on the promise that he would repay the money to individuals after he received a financial settlement or was able to access money in off shore accounts. According to the Indictment, it was part of Schultz’s scheme to defraud that Schultz found victims that had criminal histories and made false promises and false representations to them about his connections with area law firms, judges, attorneys, companies, etc. to lure victims into providing him money for his assistance with their precarious situations.

 

An example, according to the Indictment, was that David Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended for two years. David Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David Schultz for services which were never provided.

 

Another example, according to the Indictment, was that David Schultz developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in the Eastern District of Missouri. David Schultz represented to Victim D.G. that he would have his conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G. Victim D.G. paid David Schultz for services which were never provided.

 

Another example, according to the Indictment, was that David Schultz developed a relationship with Victim R.J.. Victim R.J. was a former cardiologist convicted of health care fraud in the Eastern District of Missouri. David Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney to secure “immunity” for Victim R.J. Additionally, David Schultz represented that he would pay attorneys to testify for R.J. during the medical license reinstate process; hire private investigators; make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David Schultz for services which were never provided.

 

If convicted, Schultz faces up to 20 years imprisonment on each of two counts of wire fraud, a $250,000 fine or both. Restitution for the victims will also be sought.

 

The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting the case for the U.S. Attorney’s Office

 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

St. Louis, MO – Scott Meherg, 36, Chicago, IL, was sentenced to 24 months in prison and ordered to pay restitution in the amount of $3,161.00 on charges involving his possession and use of counterfeit checks.

According to court documents, on four occasions in March 2015, Meherg used counterfeit checks to purchase merchandise at several antique malls located in Creve Coeur, Warson Woods, St. Peters, and South St. Louis County, Missouri. At the time of his arrest, the defendant had numerous active warrants for similar conduct in Illinois, Michigan, Iowa, Kentucky, and Wisconsin.

Meherg pled guilty in February to one count of counterfeit securities fraud and appeared today for sentencing before United States District Judge E. Richard Webber.

 

This case was investigated by the St. Louis County Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.

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St. Louis, MO – George Patino, 57, of Houston, Texas, was convicted by a jury on Wednesday after a three-day trial of conspiracy, distributing Human Growth Hormone (“HGH”) for unauthorized medical purposes, and smuggling.

 

According to Court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. HGH cannot be prescribed to help patients with body-building, anti-aging, or weight loss treatments. From April 2014 through June 2015, the evidence showed at trial that Mr. Patino sent numerous packages of HGH to a local St. Louis, Missouri doctor and many local patients. The local patients receiving the HGH hoped to increase their energy, strength, endurance, and athletic ability. The HGH smuggled here to Missouri by Mr. Patino was misbranded in that the drugs’ dosage and use instructions were in Spanish not English, and the drugs came from a Korean drug manufacturer that has not been approved by the U.S. Government to sell this drug in the United States.

 

A local doctor, Dr. Michael “Ted” Mimlitz, previously pled guilty in this same investigation to providing misbranded HGH drugs to numerous local patients who were experiencing a lack of energy, decreases in strength or endurance, or decreased athletic ability.

 

Mr. Patino now faces a maximum penalty of five years in prison for his conspiracy conviction, ten years in prison for his HGH distribution conviction, and twenty years in prison for the smuggling conviction, and/or fines up to $250,000 for each count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drugs are safe and effective for patients to use,” said Special Agent in Charge, Spencer Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”

 

 

This case was investigated by the Office of Criminal Investigation for the U.S. Food and Drug Administration, with assistance from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.

 

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St. Louis, MO - Two defendants of thirteen charged were sentenced yesterday in the smash and grab theft of more than $100,000 in Chanel purses from the Saks Fifth Avenue department store at Plaza Frontenac on November 26, 2016. According to the plea agreements of various defendants, a large group of individuals entered the Saks Fifth Avenue store shortly after the store opened on Saturday November 26th, proceeded to the Chanel boutique within the store and ripped numerous Chanel handbags from the shelves. In less than five minutes, the group departed from the store and entered two waiting vehicles. After an extended chase, one of the vehicles and approximately half of the stolen purses were stopped near Litchfield, Illinois.

 

Darius Bowdry, 22. And Keyshyala Thomas, 22, both of Chicago, Illinois were sentenced for interstate transportation of stolen property today. Both defendants appeared before U.S. District Judge Audrey G. Fleissig. Bowdry received a sentence of 18 months in prison, followed by 3 years supervised release. Thomas received a sentence of 30 months in prison, followed by 3 years supervised release. Both defendants were ordered to pay Saks Fifth Avenue $159,185 in restitution.

 

The case was investigated by the FBI and the Frontenac Police Department with assistance from the Illinois State police, the Hamel, Illinois Police Department, the Montgomery County, Illinois Office of the Prosecuting Attorney and the St. Louis County Prosecuting Attorney’s Office.

 

St. Louis, MO – Thirty-five (35) people were indicted in St. Louis on charges of conspiring to traffic in contraband cigarettes, conspiracy to distribute synthetic drugs and money laundering.

 

Indicted were the following individuals:

 

Mohammed Almuttan, aka Abu Ali, 35, St. Louis, MO

Rami Almuttan, aka Abu Louay, 33, St. Louis, MO

Hisham Mutan, aka Abu Mohamed, 41, St. Louis, MO

Saddam Mutan, aka Abu Ali, 24, St. Louis, MO

Mazin Abdelsalam, aka Abu Mohammad, 38, St. Louis, MO

Najeh Muhana, aka Abu Yazan, 41, Fairview, NJ

Fares Muhana, aka Abu Yamama, 40, Cliffside Park, NJ

Ayoub Qaiymah, aka Abu Faysal, 23, Richmond, VA

Naser Abid, 23, Chicago, IL

Yadgar Barzanji, aka Abu Siver, 47, St. Louis, MO

Wafaa Alwan, 50, St. Louis, MO

Ahmed Abuali, aka Bazilla, 31, North Bergen, NJ

Mohammed Kayed, aka Mohammed Fayez, 21, Clifton, NJ

Momen Abuali, 20, Little Ferry, NJ

Firat Sevindik, 42, Cliffside Park, NJ

Mohammed Mustafa, 30, North Bergen, NJ

Mohammad Karashqah, Abu Yazid, 47, North Bergen, NJ

Fayez Sheikha, 46, Mishawaka, IN

Jihad Shihadeh, Abu Malik, 58, Chicago Ridge, IL

Ismael Abadi, 57, Carol Stream, IL

Abed Hamed, Abed Fawzan, 39, Greenville, NC

Maher Hamed, Abu Alazara, 33, Swansea, IL

Abdel Adi, 25, Oak Lawn, IL

Muhanad Khatib, Abu Alamin, 36, Chicago, IL

Eyad Awad, 38, Chicago, IL

Dale Garbin, 60, Kankakee, IL

Hayder Al Fatli, 40, St. Louis, MO

Kutlay Guvener, 35, Chicago, IL

Saad Al Mallak, 30, Dittmer, MO

Hassan Abdelatif, 29, Collinsville, IL

Mahajir Naz, 32, St. Louis, MO

Talal Abuajaj, 23, St. Louis, MO

Basem Hamdan, aka Abu Ramiz, 57, St. Louis, MO

Zainal Saleh, 29, St. Louis, MO and

Ibrahim Awad, 39, St. Louis, MO

 

Defendants were indicted by a federal grand jury on May 24, 2017. Defendants are charged with various counts of conspiring to traffic in contraband cigarettes, conspiring to distribute controlled substances/analogues and money laundering.

 

According to the indictment, defendants conspired for more than two years to buy contraband cigarettes in St. Louis, Missouri, a low tax market, and transport and distribute them in Chicago, Illinois and New Jersey, high tax markets. Defendants used several convenience stores which they owned or operated to create the appearance of legitimate cigarette purchases. Illegal profits from the contraband cigarette sales were laundered through accounts associated with the convenience stores.

 

In addition, synthetic drugs, commonly referred to as K-2, was sold on a daily basis from a handful of the convenience stores. Defendants not only purchased finished product from a national distributor but manufactured synthetic drugs themselves, importing precursor chemicals from China.

 

“The collaboration with our federal and local law enforcement partners is the key to breaking criminal enterprises in this area,” said Special Agent in Charge James M. Gibbons of HSI Chicago. “HSI will continue to work with our law enforcement partners to seek out and dismantle criminal organizations that deal in contraband products and sell synthetic drugs in our communities.”

 

James P. Shroba, Special Agent in Charge of the DEA St. Louis Division stated, "These indictments and arrests reflect the commitment of the DEA and our federal, state and local law enforcement partners to dismantle these types of unprincipled business operations that are profiting from human frailty. Synthetic drugs that are sold as purportedly legal substitutes for cannabis and stimulants, such as cocaine and methamphetamine, are neither legal nor safe. These substances were never intended for human consumption and only serve to satisfy the avarice of the seller.”

 

If convicted, defendants are facing maximum penalties of 5 years to 20 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

This case was investigated by the Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, Illinois State Police, Illinois Department of Revenue and Alcohol and Tobacco Tax and Trade Bureau.

 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

Mark Chartrand, 46, of St. Louis pleaded guilty to one count of violation of the Stolen Valor Act for posing as a purple heart awardee. Chartrand pleaded guilty before Judge Henry E. Autrey who accepted his plea and set his sentencing for August 22, 2017. Chartrand will remain in custody until sentencing.

 

According to the plea agreement, Chartrand traveled from Missouri to California and, while there, convinced his AirBNB hosts to extend him credit and lend him money based in part of his distinguished military service and numerous awards and medals including a Purple Heart. Chartrand traveled under the false name “Mark Rhodes.”

 

Chartrand is a prior federal offender, having sustained a conviction for impersonating a federal officer in 2012 and convincing his then girlfriend to lend him money based on his status as an American intelligence officer. Chartrand faces up to one-year imprisonment, a fine of $100,000 or both. Restitution to the victims is also mandatory.

 

The case was investigated by the U.S. Secret Service and the U.S. Department of Defense – Office of the Inspector General – Defense Criminal Investigative Service.

 

 

 

St. Louis, MO – Eddie Lee Regans was sentenced to 81 months in prison on multiple fraud charges after using client’s personal information to obtain credit for his personal use, racking up charges of more than $110,000.

According to court documents, between August 2015 and July 2016, using the name Eddie Lee, Regans advertised himself as a contractor by distributing flyers to customers at various home improvement stores and other retail establishments in the St. Louis Metropolitan Area. Regans also established an internet website and Yellow Pages entry in which he claimed to provide home repair and general contractor services through a company called All Rehab & Repair. He also falsely claimed to have been accredited by the Better Business Bureau. In response to complaints by consumers and its own investigation, the Better Business Bureau issued an alert warning consumers from doing business with Regans and his companies. In addition to All Rehab & Repair, Regans used the following names when advertising his business: Reasonable Quality Work; Repair and Rehab; All Rehab Repairs; and, Affordable Quality Works. Regans obtained prospective customers’ identifying information by promising that his company would finance their home repairs, and believing his representations, several customers provided their names, dates of birth, social security numbers, and addresses. As Regans did not operate any company through which he could provide financing, he used the identifying information to open, and attempt to open, credit accounts at the home improvement stores Menards and Lowes. Rather than use the credit accounts for the benefits of the homeowners, Regans utilized the accounts to purchase items for his benefit.

Eddie Regans, 51, St. Louis, pled guilty on January 30, 2017 to two felony counts of fraudulent use of access devices, one felony count of mail fraud, and four felony counts of aggravated identity theft.

This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.

 

 

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St. Louis, MO – Tony Pedretti, 43, of Whiting, Indiana, admitted to his role in a kickback scheme that ran for three years while he supervised the HVAC shop and the John Cochran Veterans Administration Medical Center in St. Louis from 2012 to 2015. Pedretti appeared before Judge Audrey G. Fleissig in St. Louis. Judge Fleissig accepted his plea and set his sentencing for September 7, 2017.

 

According to the plea agreement, Pedretti conspired with Scott Geary, David Graham and others to collect kickbacks for work done at the HVAC shop. Pedretti was authorized to pay up to $2500 to outside contractors without prior approval and most of the jobs involved in the scheme were near that limit. It was a part of the parties’ agreement that, for each job, Pedretti would receive a cash kickback. In all, Pedretti admitted that more than $270,000 in work was let by him in furtherance of the kickback scheme.

 

Scott Geary has already pleaded guilty to his role in the scheme and awaits sentencing. Graham is a co-defendant with Pedretti and is awaiting trial of his case. Pedretti faces up to five years imprisonment and a fine of up to $250,000 for his conspiracy conviction.

 

This case was investigated by the United States Department of Veterans Affairs – Office of the Inspector General and the FDIC – Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

St. Louis, Missouri: Acting United States Attorney Carrie Costantin announced today that the United States, Sherry X. Ma, M.D., of Ladue, Missouri, and AIMA Neurology, LLC, reached a civil settlement that will resolve the United States= claims against Dr. Ma and AIMA Neurology under the False Claims Act for false Medicare billings related to Dr. Ma’s Botox® and Myobloc® injections.

 

According to the United States’ allegations, Dr. Ma received vials of Botox® and Myobloc® at no charge that were supposed to be used for specific patients with private health insurance. After using a portion of the Botox® or Myobloc® on the specific patients, instead of discarding the remainder of the medications contained within vials labeled as single-dose vials, Dr. Ma would keep and store the leftover Botox® and Myobloc® at AIMA Neurology, where she was the only physician. Subsequently, Dr. Ma used the remaining portion of the vials of Botox® and Myobloc® on Medicare patients but submitted claims for payment to Medicare as if she had purchased new vials. According to the United States’ allegations, Dr. Ma and AIMA Neurology’s medical records for certain Medicare patients were false in that they contained incorrect lot numbers of the Botox® and Myobloc® vials used in treatment with Medicare patients. Federal law generally prohibits health care providers from seeking reimbursement from Medicare for items that they obtained at no cost.

 

As part of the settlement, Dr. Ma and AIMA Neurology will repay the United States $291,288.06.

 

This civil settlement is part of ongoing efforts by the Department of Justice and the United States Department of Health and Human Services (HHS) to recover funds diverted from the Medicare Trust Account and is the result of a joint effort between the U.S. Attorney=s Office for the Eastern District of Missouri and the HHS Inspector General=s Office of Investigations.

 

 

St. Louis, MO – Kyle Betts pled guilty today to fraudulently obtaining pain relief drugs, including Percocet® and Norco®, by writing over seventy false prescriptions.

 

According to the plea agreement, during November 2014 through February 2016, Betts was a medical resident associated with a medical school that was located in the City of St. Louis, Missouri. Betts wrote the opioid prescriptions using the names of six separate persons, although he did not have a physician- patient relationship with any of them. Betts used the names of his family members for some of the prescriptions, and the names of persons with whom he had romantic relationships for other prescriptions. For some of these prescriptions, Betts went to the pharmacy and personally presented prescriptions for drugs using other peoples’ names. The Medicare and Illinois Medicaid programs funded some of the drugs obtained under these false prescriptions.

 

Betts pled guilty to one felony count of obtaining prescription drugs that contained controlled substances through misrepresentation, fraud, forgery, deception, and subterfuge before United States District Judge Catherine Perry. Sentencing has been set for August 17, 2017.

 

This charge carries a maximum penalty of four years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

This case was investigated by the Drug Enforcement Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.

 

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Cape Girardeau, MO – Manager Larry White, Sr. of Stop-n-Go Fish Market, Sikeston, MO, and his daughter Erica White, manager of Stop-N-Go Mini Mart store pled guilty to charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. Each admitted with their pleas that they illegally redeemed up to $549,000 in SNAP benefits between December 2010 and March 2014 by exchanging SNAP benefits for cash and illegible items.

According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT), for the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.

Larry White, Sr., 63, and Erica White, 35, both of Sikeston, MO, pled guilty to multiple felony counts of unauthorized use of SNAP benefits and conspiracy. Both appeared today before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau. Sentencing has been set for August 16, 2017.

The conspiracy count carries a maximum penalty of five years in prison and/or fines up to $250,000 and SNAP fraud carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations, Sikeston Department of Public Safety and the New Madrid County Sheriff’s Office. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.

 

St. Louis, MO – Fifteen men (12 from St. Louis and 3 from Arizona) were indicted in St. Louis on charges of conspiring to distribute and possess with the intent to distribute heroin and cocaine base (“crack” cocaine).

 

Indicted were the following individuals:

 

Kevin Simmons, 45, St. Louis, MO;

Johnnie King, 39, St. Louis, MO;

Randy Johnson, a/k/a “Big Randy”, 33, St. Louis, MO;

Farid Annoor, a/k/a “Rumble”, a/k/a “Rambo”, 26, St. Louis, MO;

Ricardo Ramos-Estrada, 31, Phoenix, AZ;

Armando Ramos-Estrada, 34, Phoenix, AZ;

Christian Nunez, 20, Phoenix, AZ;

Darryl Black, 26, St. Louis, MO;

Arieawn Richaud Dillon, 22, St. Louis, MO;

Daviyon Thomas, a/k/a “Big Boy”, 27, St. Louis, MO;

Gregory Hampton, a/k/a “Greasy”, 32, St. Louis, MO;

Travis Roberts, 28, St. Louis, MO;

Jerome Thomas, 45, St. Louis, MO;

Troy Parker, 47, St. Louis, MO; and

Jermaine Johnson, 45, St. Louis, MO.

 

Defendants were indicted by a federal grand jury on April 19, 2017. Simmons, King, Randy Johnson and Annoor were charged with conspiracy to distribute and possess with intent to distribute cocaine base (“crack”). The other defendants were charged in a separate indictment with conspiracy to distribute and possess with intent to distribute heroin.

 

If convicted of the heroin conspiracy charge, this carries a penalty of 10 years to life. If convicted of the cocaine base (“crack” cocaine) conspiracy charge, this carries a maximum penalty of twenty years in prison and/or fines up to $1,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Postal Inspection Service, St. Louis Metropolitan Police Department, St. Louis County Police Department and St. Charles City Police Department.

 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

 

indictments_1.pdf

St. Louis, MO - The United States Attorney=s Office announced today that William “Chuckie” Clarett was convicted of federal conspiracy to commit murder for hire involving the murder of Travis Hayden.

On April 22, 2015, Travis Hayden was murdered in Berkeley, MO.  A witness identified William Clarett, a/k/a “Chuckie” as the shooter.  That same day, the witness gave a written statement to police and picked Clarett out in a photospread.  On December 31, 2015, investigators arrested Clarett for the murder of Travis Hayden.  A complaint was issued on January 1, 2016, charging Clarett with Murder 1st Degree and Armed Criminal Action.  Clarett was detained at the St. Louis County Justice Center. 

On February 10, 2016,  the witness testified before a grand jury in St. Louis County and the Grand Jury returned a true bill on the murder and ACA counts. The witness’ name and address were publicly disclosed in connection with the indictment. While Clarett was detained in the Justice Center on the murder, Clarett began talking to an inmate that he knew from the neighborhood. The inmate advised authorities that Clarett was asking him to help find someone to kill the witness.  ATF then arranged to have an Undercover Officer (UC) pose as a potential hitman.  Between June 14, 2016 and June 30, 2016, Clarett spoke to UC six times over the phone about killing the witness.  On July 1, 2016, Clarett met with UC at the Justice Center and told him he would provide UC with the down payment for the murder.  Thereafter, Clarett released $500 from his commissary which was later given to the UC along with the photograph of the witness.

Clarett, 34, Berkeley, MO, was convicted of one count of conspiracy to commit murder for hire. The three-day trial was held before United States District Judge Audrey Fleissig.  Sentencing has been set for September 2017.

Clarett is facing a maximum sentence of 10 years in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Cottleville Police Department. 

St. Louis, MO – Thomas Szczerba was sentenced to 140 months for his involvement in the transportation of a woman from Texas, through Illinois and Wisconsin and ultimately to the Eastern District of Missouri to engage in prostitution. The victim was posted on www.Backpage.com and other prostitution related websites, including a prostitution website maintained by Szczerba and his co-defendant Keisha Edwards.

According to testimony at trial, in Houston, Texas, Szczerba and Edwards recruited the victim to live with them and participate in the commercial sex trade. While the victim resided with Szczerba and Edwards, Szczerba facilitated the sex dates for the victim, collected proceeds generated from the prostitution, he made decisions as to when and where the victim would go for the commercial sex dates, and Szczerba marked the victim as his prostitute by giving her an alias in line with the moniker that he gave himself and his other prostitute. While in Missouri, Szczerba also forced the victim to participate in commercial sex acts, which ultimately caused the victim to seek medical attention at a local hospital.

Szczerba, 33, of Houston, Texas was convicted in February 2017 of one count each of interstate transportation of an individual to engage in prostitution, conspiracy to commit an offense against the United States, use of facilities of interstate commerce with intent to aide a prostitution enterprise and use of facilities in interstate commerce with intent to distribute proceeds from prostitution. The five-day trial was held before United States District Court Judge Henry E. Autrey.

Szczerba’s co-defendant, Keisha Edwards pleaded guilty in February 2017 to one count each of use of facilities of interstate commerce with intent to aide a prostitution enterprise and use of facilities in interstate commerce with intent to distribute proceeds from prostitution. Edwards will be sentenced May 24, 2017.

The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. ###

St. Louis, MO – Kyle Maurice Parks was sentenced to 300 months in prison for his involvement in the transportation of four minors (ages 15-17) and two adults from Ohio to Missouri to engage in prostitution. The plan was to come to sell the girls on Backpage.com.

 

According to testimony at trial, Parks, two women and four minor females, including a runaway, left Columbus in a minivan on December 2, 2015, and arrived at the Red Roof Inn at Zumbehl Road and Interstate 70 in St. Charles, Missouri. The next day. Parks told them to rest, then woke them several hours later and told them to shower. He then told them to post ads on Backpage.com and that they would commit sex acts for cash. Some of the victims took calls and engaged in sex acts as a result of the ads, and Parks kept most of the money. Columbus police looking for the female runaway tracked her phone to the motel’s area and notified St. Charles police, who spotted the van and its Ohio temporary license tags. Police found most of the victims including the runaway in the motel rooms. Parks had left the motel with a 17-year old girl and later went to the police station to bail out one of the women. Officers arrested Parks and found a conscious but incoherent teen in the van.

 

Parks, 54, of Columbus, Ohio was convicted in January 2017 of one count of sex trafficking of a minor, two counts of attempted sex trafficking of a minor and six counts of interstate transportation with intent to commit prostitution. The four-day trial was held before United States District Court Judge John A. Ross.

 

This case was investigated by the Federal Bureau of Investigation, the Columbus, Ohio Police Department, the St. Charles City and County Police Departments, St. Louis County Police Department, the Ohio State Attorney General’s Office and the Social Security Administration OIG. Assistant United States Attorney Howard Marcus prosecuted the case for the U.S. Attorney’s Office.

 

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St. Louis, MO – Michael Thomas Smith, 47, of Cedar Hill, MO, the former Chief of Police of Byrnes Mill, Missouri, was indicted on four counts of wire fraud as part of a scheme to steal from criminal suspects and defraud Byrnes Mill and Jefferson County of his honest services.

 

According to the Indictment, Smith took thousands of dollars from three different suspects during 2013 and 2014 and failed to note the seized funds in police reports or in the departmental evidence system. The Byrnes Mill police department had no records of the funds when the suspects subsequently asked about them. In furtherance of the scheme, Smith is alleged to have sent four interstate wire transmissions to the National Crime Information Center (NCIC) in West Virginia.

 

Smith surrendered to authorities this morning and was released on bond. If convicted, Smith faces up to 20 years imprisonment on each of four counts of wire fraud, a $250,000 fine or both. Restitution for the victims will also be sought.

 

The case was investigated by the FBI – St. Louis Division with assistance from the Jefferson County Prosecuting Attorney’s Office.

 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

St. Louis, MO – Dejuan Wingard, 22, of Chicago, pleaded guilty to interstate transportation of stolen property this morning. Judge Henry Autrey accepted his plea and set his sentencing for August 1, 2017.

 

Wingard is the last of eight individuals indicted for interstate transportation of stolen property in December for their participation in a "smash and grab" theft of Chanel handbags from the Saks Fifth Avenue store in Frontenac on November 26, 2016. The group drove into Illinois with the stolen purses before being arrested by state and local police near Litchfield, Illinois.

 

All 8 defendants now await sentencing and face up to 10 years imprisonment and/or fines up to $250,000 or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

A second group of five Chicagoans alleged to have participated in this crime have been indicted in United States v William Curry, et al. and await trial.

 

This case was prosecuted by the FBI and the Frontenac Police Department with assistance from the St. Louis County Prosecuting Attorney’s office.

 

 

 

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St. Louis, MO – Charles Johnson and Shayne Kier Jones were both sentenced to 141 months in prison each for their involvement in the April 4th, 2016 armed robbery of a Dunbar Armored truck.

 

According to court documents, Johnson and Jones robbed Dunbar Armored Company shortly after a money pickup. The money was taken from a Dunbar Armored employee at gun point. Jones was employed by Dunbar, and his duty was to exit the armored truck to do the pickup and delivery of US currency. A second employee (CT) was assigned as the driver. At the end of the day’s route CT was told by Jones that he, Jones, would drive the armored truck back to Dunbar. Jones then decided to stop for gas. After getting the gas, Jones acted as if he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck. Jones threw the money bags out the back door to Johnson and another man (JB). CT said that there was a white Buick vehicle right next to the armored car. CT and Jones then drove the truck from the scene of the armed robbery.

 

On April 14th, the owner of the white vehicle, JB, which was used in the robbery was interviewed and admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told JB that he had a cousin who worked for the armored truck company and would assist in the robbery. JB’s role was to be the driver of the getaway car, the white car. On April 4th, JB and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location and got out of the truck which allowed JB and Johnson to approach and demand money. Jones was the inside employee. After the robbery, JB and Johnson drove the white car loaded with the stolen money to JB’s residence where the money was transferred to another car. They then drove to JB’s mother’s house and divided the stolen money into three shares. As Jones was still being interviewed by law enforcement, Johnson took two shares of the stolen money for himself and Jones.

 

Johnson, 36, and Jones, 30, both of St. Louis City, pled in December to one count each of conspiracy to interfere with commerce by threats of violence and use of firearm to commit that offense, and appeared today for sentencing before United States District Judge Catherine D. Perry.

This case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.

 

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St. Louis, MO – Yi Liu, a/k/a “Ronnie”, 28, Orange County, CA, was charged in a criminal complaint alleging that he conspired to defraud Enterprise Holding, a St. Louis, Missouri-based company. He was arrested in California on Thursday, April 13. His detention hearing has been set for Monday morning, April 17 in the Central District of California at the Santa Ana Federal Courthouse.

 

According to the affidavit filed with the criminal complaint, Liu and others defrauded Enterprise Holdings, which is the parent company of Enterprise, Alamo, and National car rental brands by setting up a fake car rental website. To carry out this scheme, he used fraudulent identification documents and caused the proceeds of the crimes to be wired to a bank account. From approximately May 2016 until present, Enterprise has suffered a loss of approximately $600,000 due to Liu’s fraudulent purchase and resale of car rental vouchers.

 

If convicted, conspiracy to commit wire fraud carries a maximum penalty of five years in prison and/or fines up to $250,000; aggravated identity theft carries a maximum penalty of 12 years consecutive to any other term of imprisonment and/or fines up to $250,000; and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. This case was investigated by the Federal Bureau of Investigation with the assistance of Homeland Security Investigations.

 

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liu_-_affidavit_redacted.pdf

St. Louis, MO – Two remaining defendants have been sentenced in a drug conspiracy ring on Tuesday in front of United States District Judge Catherine Perry. Gary James Evans, Jr., St. Louis, was sentenced to 102 months in prison and Lamont Kenneth Allen, St. Louis, to 24 months in prison on drug conspiracy charges.

 

The following defendants were sentenced earlier this year: Timothy Harris, Ferguson, MO – 240 months; Stephen Griffin, Sr., Ferguson, MO - 114 months; Earl Capri West, Cahokia, IL – 37 months; Shawn Duane Hall, St. Louis, MO – 151 months; Jimmie Lee Williams, St. Louis, MO – 106 months; and Stephen Griffin, Jr., St. Louis, MO – 60 months.

 

According to court documents, the conspiracy spanned more than two years and involved the distribution of more than a kilogram of heroin, the possession of numerous firearms and the generation of significant proceeds. During court-authorized wiretaps, investigators learned that members of the organization suspected that some of their customers were undercover agents. As a result, members of the conspiracy requested that an associate with access to law enforcement databases run the license plate number of the customers’ vehicle to discern whether it was registered to law enforcement. Additionally, agents intercepted calls indicating that members of the conspiracy planned to kill one of their customers over a drug debt. Agents were successfully able to intervene and arrest those involved before they were able to carry out the plot.

 

The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Kirkwood, Missouri Police Department investigated the case jointly as part of an initiative to combat opioid abuse. Assistant United States Attorney Tiffany Becker handled the case for the U.S. Attorney’s Office.

 

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St. Louis, MO – Olusola Luke, 38, a citizen of Nigeria and resident of Guatemala, was ordered held and transferred to St. Louis for further proceedings on an Indictment charging him with conspiracy and theft of government funds in connection with a Stolen Identity Refund Fraud scheme he and others are alleged to have perpetrated between 2013 and 2015.

“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Karl Stiften, Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. The arrest of Mr. Luke should serve as a strong warning to those who are considering similar conduct.”

 

According to the Indictment, Luke and others misused the identifiers of dozens of individuals to seek and obtain hundreds of thousands of dollars in government funds by filing false tax returns in the names of the identity theft victims. The Indictment alleges Luke and his co-conspirators sought more than $734,000 in refunds. Luke was arrested at Dulles International Airport late on the evening of April 6, 2017 and was taken into custody by the United States Marshals Service at that time. Today, he waived his right to a detention hearing in the Eastern District of Virginia and agreed to be transferred to St. Louis in custody to answer for the charges.

 

The case was investigated by Internal Revenue Service Criminal Investigation as part of its Stolen Identity Refund Fraud (SIRF) Initiative which seeks to disrupt the multi-billion-dollar enterprise whereby Americans’ identities are compromised and used to defraud the government through the income tax system.

 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

St. Louis, MO – Kenneth Edwards, St. Louis, admitted to a wire fraud scheme involving identity theft and counterfeit checks this morning. Edwards pled guilty to three counts of wire fraud associated with checks presented at the Maplewood Wal-Mart and Sam’s Club in December 2015.

 

According to his plea agreement, Edwards and others unknown stole identifiers of an area individual and used that information to create checks he used to purchase high end electronics. Judge Ronnie White, who accepted Edwards’ guilty plea, set a sentencing date of July 5, 2017.

 

Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 or both. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

 

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On March 31st, 2017, United States Attorney General Jeff Sessions came to Saint Louis as part of a national listening tour of law enforcement concerns and issues.

 

Over two hundred federal, state, and local law enforcement officials convened at the Thomas F. Eagleton Federal Courthouse to meet with Attorney General Sessions and Deputy Attorney General Dana Boente.

 

As part of the tour, Attorney General Sessions and Deputy Attorney General Boente met privately with 40 law enforcement officials who were there by invitation. The group discussed such issues as growing violent crime; street crime; federal forfeiture; prison sentences; funding; and federal assistance to local law enforcement.

 

Attorney General Sessions and Deputy Attorney General Boente pledged their support of local law enforcement efforts and advised that upon their return to Washington, they would meet with their staffs to consider implementing policies that address the law enforcement concerns that were raised.

 

Attorney General Sessions and Deputy Attorney General Boente then spoke to over one hundred employees of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, and the Federal Marshal Service.

 

 

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St. Louis, MO – Six area home health care workers and patients were charged with making false statements to Medicaid regarding home healthcare services that were neither received nor provided. All of the Indictments involve allegations that the defendants made false statements in Medicaid timesheets that certain patients and workers provided or received personal care services (e.g. grooming, cleaning, feeding, and medication assistance) in the home setting during certain dates and times when, in reality, the patients or workers were actually somewhere else.

 

Regina Brown, 58, and James Smith, 75, both of St. Louis, Missouri, were charged by Indictment with three felony counts making false statements to Medicaid that Brown received Medicaid-funded home health care from Smith at Brown’s home. In reality, Brown was actually vacationing in New Orleans and on a cruise ship during the dates indicated on their Medicaid timesheets.

 

Benita Bell, 46, and Tammara Bell, 28, of St. Louis, Missouri, were charged with making four false statements to Medicaid that Benita Bell was receiving Medicaid-funded home health care during timeframes when Benita Bell was actually gambling at local casino or working as a caregiver providing others with health care and personal care services.

 

Finally, Nova Paden, 50, and Demagio Smith, 27, both of St. Louis, Missouri, were charged by Indictment with making five felony counts of making false statements to Medicaid. The Indictment alleges that both Paden and Smith were working at other jobs during timeframes when they were falsely claiming to be receiving or providing Medicaid-funded home health care at Paden’s home. The Indictment also alleges that Smith was in New Jersey and California during some of the days that he and Paden claimed to be receiving or providing home health care.

 

Finally, Paden’s Indictment further alleges that Paden previously filed for disability payments from the Social Security Administration but failed to report income from her jobs, and therefore stole money from the Government that she was not entitled to receive. Five of the six defendants recently appeared in federal court for their initial appearances.

 

"Home health care is not only a more convenient alternative to skilled nursing facilities, it also saves tax dollars because it is less expensive," said William Woods, Special Agent in Charge, FBI St. Louis Division. "People who abuse and cheat the system siphon money away from those who truly need the services."

 

Steve Hanson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations-Kansas City Region, stated, “Our office, along with our law enforcement partners, will continue to pursue those individuals who seek to defraud our programs and deprive our beneficiaries of the services they so need to ensure a good quality of life.”

 

Each false statement charge carries a maximum penalty of five years in prison and/or fines up to $250,000. The theft of government property charge carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

These cases were investigated by the Federal Bureau of Investigation, the Offices of Inspector General for the U.S. Department of Health and Human Services and the Social Security Administration, and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.

 

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

 

 

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St. Louis, MO – Daniel Keith Steele was sentenced today to seven years in prison in connection with a fraud scheme involving trading in foreign currencies. Steele pled guilty in October of last year to soliciting more than $2 million from more than 20 investors who had hoped to realize the extraordinary returns promised by Steele, which were sometimes as high as one percent to five percent per month.

 

As Steele previously admitted at his plea hearing, Steele invested only a fraction of the money he solicited in foreign currency markets. Instead, according to court documents, he spent investor funds on himself and his family, including the purchase of two different vehicles at a total cost of nearly $100,000, and repaid some later investors with funds contributed by earlier investors. Steele also admitted to generating false reports for investors that reflected returns that Steele had never achieved, and of creating and providing similar false documents when questioned by investigators. According to court documents, of the more than $2 million solicited from investors, only approximately $1.2 million was ever invested by Steele in foreign currency trading.

 

Steele, 57, Rolla, MO, pled guilty in October to one felony count of mail fraud and four felony counts of wire fraud. Steele appeared today for sentencing before United States District Judge Henry E. Autrey, in St. Louis.

 

The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran handled the case for the U.S. Attorney’s Office.

 

 

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A federal grand jury sitting in St. Louis, Missouri, returned a superseding indictment today charging a St. Louis resident for his role in a sophisticated stolen identity refund fraud scheme and other federal offenses, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Carrie A. Costantin for the Eastern District of Missouri.

 

The superseding indictment charges Kevin Kunlay Williams aka Kunlay Sodipo, a Nigerian citizen, with mail fraud, aggravated identity theft, voter fraud, illegal reentry and being a felon in possession of a firearm. According to the indictment, Williams and others stole public school employees’ IDs from a payroll company and used them to electronically file more than 2000 fraudulent federal income tax returns seeking more than $12 million in refunds. He also allegedly stole several Electronic Filing Identification Numbers (EFINs) that he used to secure bank products allowing him to print refund checks and direct the Internal Revenue Service (IRS) to send refunds to prepaid debit cards. The indictment alleges that Williams had refund checks issued in the names of the stolen IDs, and blank check stock and debit cards sent to his residence.

 

The indictment further alleges that Williams previously entered the United States from Nigeria under the name Kunlay Sodipo, but was deported in 1995. According to the indictment, in 1999, Williams illegally returned to the United States from Nigeria using the last name Williams. In 2012, Williams allegedly registered to vote in federal, state and local elections by falsely claiming that he was a U.S. citizen and is alleged to have voted in the 2012 and 2016 presidential elections. On the day of his arrest in February, Williams is alleged to have been illegally in possession of a firearm.

 

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

 

If convicted, Williams faces a statutory maximum sentence of 20 years in prison for each count of mail fraud, a mandatory minimum sentence of two years in prison for the aggravated identity theft, a statutory maximum sentence of 10 years in prison for the illegal reentry, a statutory maximum sentence of five years in prison for each of the voter fraud counts, and a statutory maximum sentence of 10 years in prison for the felon in possession of a firearm. The defendant also faces a period of supervised release, restitution, forfeiture and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Costantin commended special agents of IRS-Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan Alabama Police Department and Alexander City Alabama Police Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who are prosecuting this case with assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.

 

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

 

St. Louis, MO – Shawn Brown pled guilty to one charge of mail fraud. Brown appeared today before United States District Judge Ronnie L. White. Sentencing is set for June 29, 2017.

 

According to court documents, at some time in 2008, Shawn Brown (“Brown”) contacted M.S. to discuss purchasing Midwest Environmental, a company that focused on mold and asbestos removal, air duct cleaning and other property clean up. Brown and M.S. agreed that Brown would run the day to day operation of the company. Brown’s responsibility included making bids, accepting and depositing payments and paying various operating expenses.

 

From 2008 until April 2014, Brown spoke with M.S. monthly and informed him generally of the company’s financial well-being. In April 2014, Brown began suffering from a health issue and was unable to work for a period of time. In Brown’s absence, M.S. reviewed NUTECH’s financials. Upon review, M.S. discovered numerous charges on the company’s bank account statements for purchases made by Brown for his personal use and benefit from April 2011 through May 2014.

 

It was determined that Brown stole $65,054 of NUTECH’s money for his own personal use and benefit.

 

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.

 

 

 

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St. Louis, MO – De’Janay Noldon pled guilty to charges of mail fraud and identity theft. Noldon appeared today before United States District Judge Henry E. Autrey.

 

According to court documents, between February 2016 and May 2016, Noldon was employed as a certified nurse’s assistant caregiver with Seniors Health Care (SHC) in Webster Groves, Missouri. Noldon used her position as a caregiver to gain access to an elderly victim’s personal information and used the victim’s personal identification information to obtain open lines of credit that Noldon used to purchase merchandise at stores, make online purchases, and pay personal bills for Noldon and her family and friends. Noldon also fraudulently accessed an Edward Jones account belonging to that victim and initiated several money transfers in an attempt to steal the victim’s savings. The investigation has thus far revealed that Noldon defrauded 13 elderly individuals and six financial institutions. The total loss amount is approximately $30,000.00.

 

Noldon, St. Louis County, pled guilty to one count of mail fraud and one count of aggravated identity theft. Sentencing has been set for June 27, 2017.

 

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and aggravated identity theft carries a two year mandatory consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the U.S. Postal Inspection Service and the Shrewsbury Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.

 

 

 

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St. Louis, MO – Denver Nichols pled guilty to charges of false tax returns for the tax years 2007-2008. Nichols appeared today before United States District Judge John A. Ross.

 

According to court documents, Nichols is a roofing contractor located in Labadie, Missouri, who did business under the name of Eagle Roofing Co. Nichols did not file his 2007 federal income tax return until November 7, 2011, and his 2008 federal income tax return until December 12, 2012. The IRS determined that Nichols understated his gross receipts on the Schedule C of his 2007 return in the amount of $959,500, which actual total was $1,584,208. His gross receipts on the Schedule C of his 2008 return in the amount of $794,680, which actual total was $1,111,597. Nichols knew that the reported amounts of the gross receipts of Eagle Roofing for the years 2007 and 2008 were substantially less than the actual amounts of the gross receipts of Eagle Roofing for those years.

 

Nichols, Labadie, MO, pled guilty to two counts of filing false tax returns. Sentencing has been set for July 7, 2017.

 

Filing a false tax return carries a maximum penalty of three years in prison and/or $250,000 fine for each count. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 

This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.

St. Louis, MO – On October 12, 2016, a federal grand jury returned a ten-count indictment charging Malachi Duncan, a/k/a "Demarcus Brewster" with multiple fraud charges for orchestrating a scheme to commit student loan fraud, mail fraud, bank fraud, social security fraud and identity theft. Duncan had his first appearance in federal court today.

On March 1, 2017, Duncan, a former resident of Hillsboro, Missouri, was arrested by the United States Marshals Service in Memphis, Tennessee. At the time of his arrest, the defendant was living in Memphis and had enrolled at the University of Memphis under an assumed name.

According to the indictment, Duncan fraudulently used the pedigree information of co-conspirator "Demarcus Brewster" to enroll and gain admission as a full-time student during the 2013-2014 school year at Jefferson College in Hillsboro, MO. As part of the scheme, Duncan fraudulently used Brewster’s identity to obtain federal financial aid, student housing and on-campus employment.

Duncan is charged with: one felony count of conspiracy, two felony counts of identity theft, two felony counts of aggravated identity theft, one felony count of fraudulent production of an identification document, three felony counts of social security fraud and one felony count of bank fraud.

If convicted, Duncan faces penalties of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

In June 2016, co-conspirator Demarcus Brewster entered a plea of guilty to one count of conspiracy to commit student loan fraud. On September 27, 2016, United States District Judge John A. Ross sentenced Brewster to a seven-month term of imprisonment and ordered that Brewster pay restitution to the United States Department of Education.

This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the United States Department of Education, the Office of the Inspector General/Social Security Administration, the United States Marshals Service, the Hillsboro Police Department, the Jefferson County Sheriff’s Department and the Jefferson College Campus Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.