Eastern District of Missouri

St. Louis, MO – David Bollinger, was sentenced to 130 months imprisonment today on charges of knowingly and intentionally distributing heroin to Mitchell Stenger.

According to testimony presented at sentencing, Stenger contacted Bollinger on December 3, 2014, and asked Bollinger to provide him with heroin. After initially declining, Bollinger made the 60-mile round-trip from his home in Cottleville to a source of supply in the City of St. Louis, where he acquired heroin. Bollinger then delivered that heroin to Stenger, despite knowing that Stenger was suffering from significant asthma-related breathing difficulties and was receiving regular injections of Vivitrol. Dr. Stacey Hail, an Emergency Department physician at Parkland Hospital in Dallas, Texas, testified that Vivitrol is a prescription medication used in the treatment of heroin addiction. The medication is administered by injection, given once monthly and blocks heroin’s effects on the user’s brain. As a result, Hail testified, users who attempt to overcome the blockade use increasingly large amounts of heroin in order to get high, leaving them especially vulnerable to overdose. Shortly after Stenger’s death, Bollinger admitted to police that he knew that Stenger was using dangerous amounts of heroin in an attempt to counteract the Vivitrol, and reported that his last words to Stenger were “dude, be careful.”

Bollinger pled guilty in July 2016 to one felony count of distribution of heroin.  He appeared today for sentencing before United States District Judge Carol E. Jackson. In her remarks, Judge Jackson noted that Stenger would not have died "but for" the ingestion of the heroin distributed by Bollinger, and that the offense required a significant punishment.

This case was investigated by the Cottleville Police Department, the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration.

St. Louis, MO – Darren Small and Jayna Small, husband and wife of Kinloch, MO, have been charged by complaint with conspiracy, access device fraud and wire fraud in connection with their alleged theft of funds from the Kinloch Fire Protection District. Darren Small is the Chief of the Fire Protection District, and Jayna Small is the President of the Board of Directors for the District.

According to the criminal complaint filed in United States District Court on Friday, Darren Small and Jayna Small 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, and to pay for their personal household utility bills. Darren and Jayna Small face up to five years in prison on the conspiracy charge, up to ten years in prison on the access device fraud charge and up to 20 years in prison on the wire fraud charge. They are expected to appear in federal court today.

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.

St. Louis, MO – Precious Agobe, St. Louis County, Missouri, was sentenced to 37 months in prison and ordered to pay restitution in the amount of $510, 358.48 on charges involving his participation in a stolen identity tax fraud and money laundering scheme.

According to court documents, on three occasions in February 2015, Agobe made withdrawals from a Bank of America account which contained the proceeds of fraudulently obtained federal income tax refunds. The total amount of these withdrawals was $8,800. The parties agreed that the loss from these fraudulently obtained income tax returns was between $250,000 and $550,000.

In December 2015, Agobe withdrew $3,000 from a Bank of America account which contained the proceeds of a scheme to defraud in which a business in Kelso, Washington, was induced by fraud to transfer $47,700 from its bank account to a bank account at Bank of the West, in Mission, Kansas. A portion of this money was subsequently transferred to the Bank of America account from which Agobe withdrew $3,000.

In February 2016, 21 counterfeit checks in amounts totaling $99,055, which purported to be drawn on an account of a business in Mustang, Oklahoma, at All America Bank, in Oklahoma City, Oklahoma, were deposited into an account at Bank of America. Agobe subsequently withdrew $1,990 from this Bank of America account. The parties agreed that the loss from Agobe’s money laundering activity was $68,968.

“Those who commit identity theft and fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Stealing identities and filing false tax returns is a serious crime that causes immense hardship to innocent victims.”

Agobe pled guilty in December to three counts of theft of government property and two count of money laundering. He appeared today for sentencing before United States District Judge Ronnie L. White.

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

St. Louis, MO – Mark Q. Stafford of O’Fallon, Missouri, pled guilty to 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. Stafford appeared before United States District Judge Henry E. Autrey, who set sentencing for June 13, 2017.

Stafford, who was also a minister at New Birth Powerplex Ministries in North St. Louis, admitted in open court that he 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 also pled guilty to filing a false tax return in 2011 that failed to disclose the income he had illegitimately taken from his investors. Stafford also admitted to failing to file any tax return in 2012 and 2014.

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Filing a false tax return carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution is mandatory under the Mandatory Victims Restitution Act. Additionally, Stafford agreed to a forfeiture allegation that will result in a money judgment against him equal to the amount he swindled from investors.

The case was investigated by the Internal Revenue Service and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Nineteen defendants have been charged in federal court in connection with a multi-count indictment arising from their participation in a fraudulent telemarketing enterprise that often targeted elderly victims.

In October 2016, a grand jury returned an indictment against nine individuals living in the Phoenix, Arizona, area. Last month, a grand jury returned a superseding indictment against an additional ten defendants. The superseding indictment includes charges against individuals living in Missouri, Kansas and Nevada.

Defendants Michael McNeill, Joshua Flynn, Timothy Murphy, Shawn Casey, Thomas Silha, Jennifer Hansen, Dean Miller, Michael Silver, John Balleweg, Donald Schnock, Ashley Powell, Scott Shocklee, Jason Gallagher, Andre Devoe, Bruce Doll, Anthony Swiantek, Philip Hale, Cybill Osterman and Brian Phillips are alleged to have committed multiple offenses related to a fraudulent telemarketing scheme. The telemarketing enterprise sold false and fictitious business opportunities as part of scheme that reached across the United States and Canada and generated in excess of $20,000,000 in sales. The Phoenix, Arizona, based telemarketing enterprise operated under multiple business names and utilized multiple business entities over the course of the scheme, including Smart Business Pros LLC of Warson Woods, Missouri.

The charges include conspiracy to commit mail, wire and bank fraud; wire fraud; mail fraud; bank fraud; money laundering and conspiracy to commit money laundering. All nineteen defendants are scheduled to be arraigned today by Magistrate Judge Shirley Padmore Mensah on those charges.

If convicted of wire fraud or mail fraud in connection with telemarketing, a defendant faces up to 30 years in prison, a fine of $250,000 or both. If convicted of conspiracy to commit money laundering, a defendant faces up to 20 years in prison, a fine of $500,000 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 is being investigated by the Office of the Arizona Attorney General, United States Postal Inspection Service, IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Charles Birmingham 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.

Hannibal, MO – Police and federal agents made a series of early-morning raids and arrests in the St. Louis and Hannibal areas Wednesday that targeted a narcotics trafficking distribution conspiracy in the Hannibal, Missouri, area.

A federal grand jury indictment against 13 men and women handed down in December was unsealed Wednesday after the arrests began. The 19-page indictment describes the actions of couriers of drugs, as well as dealers, enforcers and suppliers.

According to the indictment, Tyrone Williams, aka "Fatman," and Justin Woodson, aka "Juddy," obtained cocaine from a source in Austin, Texas, who transported it to St. Louis. Woodson hired couriers, often females, to drive the cocaine from St. Louis to Hannibal. After arriving in Hannibal, it was converted into crack cocaine for distribution, primarily at an open-air drug market in the area of the 2000 block of Gordon Street in Hannibal, Missouri. Additionally, the indictment alleges that members of the conspiracy also distributed heroin, cocaine and crack cocaine in the Hannibal area, as well as other areas in the Eastern District of Missouri. There were also charges against five defendants for conspiring to launder the proceeds of the narcotics conspiracy. In addition to criminal charges, the indictment also seeks forfeiture of three vehicles and three pieces of property located in Hannibal, Missouri.

Individuals indicted:

• Justin Woodson, St. Louis, MO
• Tyrone L. Williams, Hannibal, MO
• Tyrone Robinson, Swansea, IL
• Terry T. Williams, St. Louis, MO
• Harold Williams, Hannibal, MO
• Ashley Shaw, Hannibal, MO
• Eric L. Dilworth, St. Louis, MO
• Corey L. Cobb, Hannibal, MO
• Christopher J. Harris, St. Louis, MO
• Sierra Parrish, Quincy, IL
• Louetta M. Dorsey, Mexico, MO
• Brian Jones, Hannibal, MO
• Donte M. Clausell, Hannibal, MO

During the course of the arrests, an individual not part of the indictment, Kalvin Anderson, Hannibal, MO, was arrested. A known associate of one of the indicted defendants, Anderson was arrested when law enforcement determined he was in possession of a firearm after having previously been convicted of a felony. A Glock nine millimeter was seized during his arrest.

The initial appearances of defendants Robinson, Shaw, Cobb, Harris, Parrish, Dorsey and Jones were held late Wednesday in front of United States Magistrate Judge Noelle Collins. All seven defendants were detained pending detention hearings that will be held Friday, February 24.

This case was investigated by multiple law enforcement agencies, including the Drug Enforcement Administration, the West Central Illinois Drug Task Force, Quincy Police Department, Troy Police Department, Lincoln County Sheriff’s Office, Adams County Sheriff’s Office, Hannibal Police Department and the Northeast Missouri Narcotics Task Force. Assistant United States Attorney Amanda Wick 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 – Two individuals charged with the November 26, 2016, robbery at Plaza Frontenac have entered guilty pleas to interstate transportation of stolen property. They appeared in federal court today in St. Louis.

According to court documents, the eight named defendants and others entered the Saks Fifth Avenue department store soon after it opened on the Saturday after Thanksgiving and ran to the Chanel counter, grabbing thirty handbags and smashing fixtures in the process. The group then left the store and entered two waiting vehicles, which left the shopping center and traveled east on Highway 64/40. The Frontenac, Missouri, police department pursued the vehicles, but disengaged due to safety concerns as the defendants’ vehicle was exceeding 100 miles per hour on the highway.

Later that morning, the Illinois State Police and other local departments from southern Illinois were able to stop the defendants’ car, which contained sixteen of the stolen handbags. The defendants were taken into custody.

Darius Bowdry, and Keyshyala Thomas, both of Chicago, IL, pled guilty to one felony count each of interstate transportation of stolen property before United States District Judge Audrey G. Fleissig. Sentencing has been set for May 30, 2017.

Co-defendants Dejuan Wingard, Mario Washington, Jacob Lee, Derrick Crowder, Terrence Bell, and Julian Campbell, all of Chicago, Illinois, were each indicted by a federal grand jury last December on the same charge and are facing trial.

Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and/or fines up $250,000. Restitution is mandatory and the government is seeking the criminal forfeiture of all the stolen merchandise. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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.

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

A federal grand jury sitting in St. Louis, Missouri, indicted a St. Louis resident on mail fraud and aggravated identity theft charges relating to a scheme to steal public school employees’ IDs and use them to file federal tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Richard G. Callahan for the Eastern District of Missouri.

According to the indictment returned on Feb. 1 and unsealed today, Kevin K. Williams stole public school employees’ IDs from a payroll company and used them to electronically file fraudulent federal income tax returns in the name of those employees. He also allegedly stole several tax preparation businesses’ Electronic Filing Identification Numbers (EFINs), which he used to secure bank products that allowed him to print refund checks and direct refunds to prepaid debit cards. The indictment alleges that Williams had printed refund checks issued in the names of the stolen IDs, and blank check stock and debit cards sent to his residence.

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 mail fraud count and a mandatory minimum sentence of two years in prison for aggravated identity theft. Williams also faces a period of supervised release, restitution, monetary penalties and forfeiture.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Callahan commended special agents of Internal Revenue Service 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 the case with assistance from the U.S. Attorney’s Offices for 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 – Three Franklin County, Missouri, residents have been sentenced for their participation in a conspiracy to commit identity theft and access device fraud in the Eastern District of Missouri.

According to court documents, John Dean Townsend stole the personal identification information of his customers while he was employed at an automotive dealership located in St. Louis County and sold the information to Jessica L. Franklin in exchange for quantities of methamphetamine and U.S. currency. Franklin used the stolen identification information to manufacture fraudulent Missouri Department of Revenue temporary driver’s licenses which Franklin and Jesse Ray Chitwood used to open lines of credit and purchase merchandise at various retailers throughout the Eastern District of Missouri.

Jessica L. Franklin, Beaufort, MO, pled guilty in October 2016 to one count of conspiracy to commit identity theft and one count of aggravated identity theft. She was sentenced in January 2017 to 45 months in the Bureau of Prisons.

Jesse Ray Chitwood, St. Clair, MO, pled guilty in September 2016 to one count of conspiracy to commit identity theft. He was sentenced in January 2017 to 24 months in the Bureau of Prisons.

John Dean Townsend, Pacific, MO, was sentenced today to 13 months on one felony count of conspiracy to commit identity theft and access device fraud.

All defendants appeared before United States District Judge John A. Ross.

This case was investigated by the Franklin County Sheriff’s Office; the Washington, Missouri, Police Department; the Ballwin Police Department and the Kirkwood Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Charles Hicks, Fenton, Missouri, was sentenced to 27 months in prison involving a false invoice scheme to defraud two employers, causing a loss of $386,000. In addition to the prison sentence, Hicks was ordered to pay restitution of $386,000.

According to his plea agreement, Hicks devised a false invoice scheme to defraud two successive employers, RockTenn Company and MarChem Company, over the course of two and a half years. Hicks had authority to identify vendors and authorize purchases and used dummy companies to submit and receive payments for false invoices.

Hicks pled guilty in October to one felony count of mail fraud. He appeared today for sentencing before U.S. District Judge Stephen N. Limbaugh, Jr.

This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.

St. Louis, MO – George Patterson, Bland, MO, was sentenced to 121 months in prison on charges of possession of child pornography.

According to court documents, in December 2015 and January 2016, the Missouri Internet Crimes Against Children (MOICAC) Task Force received a tip that an email address, later found to belong to George Patterson, uploaded suspected child pornography images to a Google Plus photos account. On April 27, 2016, a federal search warrant was executed in Bland, Missouri. On scene forensics of Patterson’s cell phone revealed approximately 3,000 images of child pornography and child erotica.

Patterson pled guilty in November to one felony count of possession of child pornography. He appeared today for sentencing before United States District Judge Catherine D. Perry.

This case was investigated by the Missouri Internet Crimes Against Children (MOICAC) Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Justin X. Carroll, University City, MO, appeared in federal district court today to answer to a child pornography charge contained in a federal grand jury indictment that was filed last Wednesday but remained sealed until Carroll’s court appearance earlier this morning. The time period covered by the indictment is November 2015 to December 2016.

In the course of a child pornography investigation involving the internet, federal investigators discovered a group of child pornography sharers and were able to identify Carroll as one of the participants by tracing IP addresses to computers at his residence and Washington University, where Carroll served as Associate Vice Chancellor for Student Affairs.

U.S. Attorney Richard Callahan noted that the investigation only identified criminal wrongdoing in connection with the internet, and did not discover any wrongdoing in connection with Carroll’s University responsibilities or involving students. He also expressed appreciation for the cooperation that Washington University provided in connection with the investigation.

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If convicted, this charge 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.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Rob Livergood 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 – Timothy Rossell, aka Timothy Rosselli, aka Austyn Gardner, aka Austyn Labella, of Union, Missouri, pled guilty to charges of impersonating a federal agent.

According to court documents, between January and October 2016, Rossell carried on romantic relationships with two women, one residing in Florida, the other in the Union, Missouri, area. Rossell represented himself to be a Deputy United States Marshal to both women. Both women lent him money, supported him emotionally and financially and applied for credit to purchase luxury sports cars, including a white Lamborghini for him.

On October 10, 2016, Rossell’s Missouri girlfriend discovered some suspicious paperwork and counterfeit United States Marshal service equipment, identification, badges and apparel. Rossell quickly left their shared residence and went to Illinois. His sports car became disabled in the vicinity of Effingham, Illinois, and he obtained a tow for his car and a ride to the local bus depot, while continuing to pose as a Deputy United States Marshal. He was arrested at the bus depot.

Rossell pled guilty to one felony count of impersonating an officer before United States District Judge Rodney W. Sippel. Sentencing has been set for April 27, 2017.

He now faces a maximum penalty of three 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 United States Marshals Service, with assistance from the Union (MO) Police Department and the Effingham (IL) Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

WASHINGTON – The owner of a St. Louis, Missouri, tax return preparation business was sentenced to 27 months in prison Friday following his conviction on two counts of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to court records, Semere Tsehaye, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in Illinois, Kansas and Missouri from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).

"As the owner and operator of numerous tax return preparation businesses, Semere Tsehaye was clearly aware of his obligation to accurately report his income and expenses to the Internal Revenue Service (IRS), and yet ignored his responsibilities in an effort to cheat the system," said Acting Deputy Assistant Attorney General Goldberg. "Tsehaye’s sentence makes clear that those who seek to evade paying their fair share will face severe consequences for their criminal conduct."

"Mr. Tsehaye’s attempt to evade tax by hiding income and filing false returns was a theft from the American public," said Special Agent in Charge Karl Stiften of IRS Criminal Investigation (CI), St. Louis Field Office. "Tax evasion of this magnitude with this degree of dishonesty and deceit deserves to be punished and Mr. Tsehaye will now pay the price for his crimes."

Court records show that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the IRS. These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,895 in 2010 and $1.03 million in 2011, and resulted in Tsehaye evading a total of approximately $581,264 in tax due and owing.

On Oct. 4, Tsehaye was convicted of two counts of tax evasion by a federal jury sitting in St. Louis, Missouri. In addition to the term of prison imposed, Tsehaye was ordered to serve three years of supervised release and to pay $298,178 in restitution to the IRS.

Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their substantial assistance.

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

St. Louis, MO – Darrin Landes was sentenced to 30 months imprisonment on wire fraud charges and violation of his supervised release, both of which involved Landes’ scheme to sell sporting event tickets, but not delivering them to the purchasers after they sent payment to him.

According to court documents, from September 2015 to July 2016, Landes offered to sell tickets to sporting and entertainment events, including the 2016 Kentucky Derby, the 2016 Masters golf tournament in Augusta, Georgia, and St. Louis Cardinals games. On some occasions, he offered to sell accommodations at hotels, resorts, and/or homes. He frequently did not have tickets to sell to these prospective purchasers, and when he did have one ticket to an event, he attempted to sell the same ticket to someone else.

Landes and the prospective purchasers discussed the price for these tickets through face-to-face conversations, emails, texts and/or telephone conversations. The purchasers agreed to pay Landes and upon receipt of payment Landes would send them the purchased items. Landes instructed the purchasers to send payment to him by wire transaction to either his PayPal account, one of his alleged business acquaintance’s PayPal account, or on some occasions he met with the purchaser and obtained the money for the items he was selling. After the purchasers sent money to Landes and they did not receive the items that they paid for, and attempted to contact Landes, he offered some excuse for the delay in sending the purchased item.

Landes, Ballwin, MO, pled guilty last September to one felony count of wire fraud. He appeared today for sentencing before United States District Judge Rodney Sippel. Landes was also on supervised release for a 2014 wire fraud conviction. Today, the Court revoked his supervised release.

This case was investigated by the Federal Bureau of Investigation and the Kirkwood Police Department. Assistant United States Attorney Anthony Franks handled the case for the U.S. Attorney's Office.

St. Louis, MO – Gwendolyn Hampton was indicted on tax evasion charges involving the years 2009-2013. The indictment alleges that during those years she sought to evade $376,463 in tax.

According to the indictment, Hampton owned and operated Hampton Academy, LLC, a daycare center that provided childcare to low income families. Between January 2009 and December 2013, Hampton Academy collected $2,387,386 in revenue. During that time she took $1,338,549 in cash and cashier’s checks from the business. For years 2009 and 2011 she did not file a federal tax return. For the years 2010, 2012 and 2013, Hampton filed false returns understating her income and tax owed.

“CI’s largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.

Hampton, St. Louis City, was indicted by a federal grand jury on January 4 on five felony counts of tax evasion. She was arrested earlier today and expected to appear in federal court this week.

If convicted, each count carries a maximum penalty of five years in prison and/or fines up to $100,000. 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 IRS Criminal Investigation. Assistant United States Attorney Tom Albus 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 – Walter Wallace, Jr., was sentenced to 25 years in prison on the charge of possession of a firearm in furtherance of drug trafficking resulting in the December 18, 2010, murder of Michael Hayes. Mr. Hayes was found shot inside his residence on Alice Avenue in the City of St. Louis. Wallace was sentenced this afternoon by United States District Court Judge Henry E. Autrey. His co-defendant, Jerry Chambers, will be sentenced later this month.

In the fall of 2010, Wallace engaged in discussions with others about committing a robbery of Mr. Hayes. In furtherance of those discussions, Wallace and others conducted surveillance of Mr. Hayes’ residence, obtained information about the interior of Mr. Hayes’ residence and, on at least one occasion, unsuccessfully attempted to make entry into Mr. Hayes’ residence.

On December 18, 2010, Wallace and his co-defendant, Jerry Chambers, carried out the burglary of Mr. Hayes’ residence. Wallace and Chambers drove to the area of the residence and parked in an alley behind the residence. The two men went to the front door of Mr. Hayes’ residence believing that Mr. Hayes was not at home. Wallace was armed with a 9mm caliber firearm. Chambers possessed a crowbar. After a few minutes, Chambers forced entry into Mr. Hayes’ residence with the crowbar.

Wallace and Chambers entered the residence. Mr. Hayes was not present at that time. Among other things, Wallace entered Mr. Hayes’ bedroom to search for items to take. As Wallace searched, Mr. Hayes returned home and made entry into his bedroom from a separate door. When Mr. Hayes stepped inside, Wallace removed his firearm. Wallace shot Mr. Hayes once. Mr. Hayes was struck by the bullet and died from his injuries. Wallace’s firearm jammed after that first shot. No struggle occurred between Mr. Hayes and Wallace at any time. Wallace ran from and exited the residence after shooting Mr. Hayes. Wallace and Chambers, who had been in a separate part of the residence at the time of the shooting, drove away from the scene.

In the hours and day(s) following the murder of Mr. Hayes, Wallace discarded some of the clothing worn by him at the time of the murder, as well as the firearm used.

Wallace’s sentence comes in connection with the on-going coordinated effort to address the commission of homicides in the City of St. Louis between United States Attorney Richard Callahan’s office, the St. Louis Circuit Attorney’s Office, the St. Louis Metropolitan Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives.

St. Louis, MO – Three individuals were indicted today in an indictment alleging that they organized and ran an illegal high-stakes sports betting operation, in part by utilizing a website on the internet. 

The three individuals are also accused of engaging in money laundering and unlawful monetary transactions, including the purchase of a house and a vehicle using the proceeds of their crimes. 

The indictment alleges that two of these individuals filed false tax returns trying to conceal their crimes, and a third committed perjury by filing a false declaration before the United States District Court for the Eastern District of Missouri. 

Samuel Douglas Hazer, Florence, Alabama; Carol Jean Hazer, Farmington, Missouri; and Joseph Mahfood, St. Louis, Missouri; were indicted on multiple charges including illegal gambling business, interstate activity in furtherance of gambling, money laundering, unlawful monetary transactions, perjury and filing false tax returns.

If convicted, these charges carry maximum penalties up to 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.

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Richard Finneran 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 – Assistant United States Attorney Nicholas Llewellyn, Chief of the Civil Division, announced today that the Eastern District of Missouri collected $15,481,954 in criminal and civil actions in fiscal year 2016.  Of this amount, $14,157,722 was collected in criminal actions and $1,324,232 was collected in civil actions. 

Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $230,037 in cases pursued jointly with these offices.  Of this amount, $2,796 was collected in criminal actions and $227,241 was collected in civil actions.                      

Attorney General Loretta E. Lynch announced on December 14th that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending September 30, 2016.  The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch.  “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment.  I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

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

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

Additionally, the U.S. Attorney’s Office in Eastern District of Missouri, working with partner agencies and divisions, collected $14,868,960 forfeiture actions in FY 2016.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

St. Louis, MO – Darren Randal Wilson was sentenced to 12 months and one day in federal prison, and a three-year term of supervised release, for his misappropriation of over $80,000 from the Ethical Society of Police.

As part of the guilty plea in September, Wilson acknowledged that he abused his position of public and private trust.  He agreed to a money judgment against him of $80,934, to account for the losses to ESOP associated with the fraud scheme.  He also agreed to surrender his law enforcement certification and to no longer work or seek employment as a law enforcement officer. 

According to court documents, Wilson was president of the Ethical Society of Police (ESOP) in 2013 and 2014.  As president of ESOP, Wilson had access to funds in the ESOP bank account, which consisted primarily of the monthly dues contributed by the police officer members of ESOP.

Between July 2013 and December 2014, Wilson engaged in a fraud scheme to misappropriate money from the ESOP bank account and to use the money for his own purposes, including funding his business promoting comedy shows featuring nationally known comedians at local night clubs.  To further the fraud scheme, Wilson transmitted some of the misappropriated money by Fed Wire, PayPal and Western Union wire transfers.  To conceal his fraudulent activity, Wilson presented false information to ESOP officers and members. 

Wilson, St. Louis, Missouri, pled guilty to all nine counts of wire fraud in September. He appeared today for sentencing before United States District Judge Henry Autrey. 

This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.  Assistant United States Attorney Cristian M. Stevens handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Precious Agobe, St. Louis County, MO, pled guilty to charges involving his participation in a stolen identity tax fraud and money laundering scheme. 

According to court documents, on three occasions in February 2015, Agobe made withdrawals from a Bank of America account which contained the proceeds of fraudulently obtained federal income tax refunds. The total amount of these withdrawals was $8,800. As part of the plea agreement in this case, the parties agreed that the loss from these fraudulently obtained income tax returns was between $250,000 and $550,000.

In December 2015, Agobe withdrew $3,000 from a Bank of America account which contained the proceeds of a scheme to defraud in which a business in Kelso, Washington, was induced by fraud to transfer $47,700 from its bank account to a bank account at Bank of the West, in Mission, Kansas. A portion of this money was subsequently transferred to the Bank of America account from which Agobe withdrew $3,000.

In February 2016, 21 counterfeit checks in amounts totaling $99,055 which purported to be drawn on an account of a business in Mustang, Oklahoma, at All America Bank, in Oklahoma City, Oklahoma, were deposited into an account at Bank of America. Agobe subsequently withdrew $1,990 from this Bank of America account. As part of the plea agreement in this case, the parties agreed that the loss from Agobe’s money laundering activity was $68,968. 

Agobe pled guilty to three counts of theft of government property and two counts of money laundering before United States District Judge Ronnie L. White.  Sentencing has been set for March 26, 2017.

Theft of government funds carries a maximum penalty of ten years in prison and/or fines up to $250,000. Each count of money laundering carries a maximum of 20 years and/or fines up to $500,000.  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 Internal Revenue Service-Criminal Investigation and the Kelso, Washington Police Department. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Eight individuals arrested on November 26, 2016, for their part in a robbery at Plaza Frontenac were indicted today for interstate transportation of stolen property.

Dejuan Wingard, Mario Washington, Jacob Lee, Derrick Crowder, Darius Bowdry, Terrence Bell, Julian Campbell and Keyshyala Thomas, all of Chicago, Illinois, were each indicted by a federal grand jury on one felony count each of interstate transportation of stolen property, which follows a criminal complaint filed Monday.

According to court records, the eight named defendants and others entered the Saks Fifth Avenue department store soon after it opened on the Saturday after Thanksgiving and ran to the Chanel counter, grabbing thirty handbags and smashing fixtures in the process.  The group then left the store and entered two waiting vehicles, which left the shopping center and traveled east on Highway 64/40.  The Frontenac, Missouri, police department pursued the vehicles but disengaged due to safety concerns as the defendants’ vehicle was exceeding 100 miles per hour on the highway.

Later that morning, the Illinois State Police and other local departments from southern Illinois were able to stop the defendants’ car, which contained sixteen of the stolen handbags, and take the defendants into custody.  The defendants remain in federal custody on the government’s motion to detain them pending trial.

Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and/or fines up $250,000. Restitution is mandatory and the government is seeking the criminal forfeiture of all the stolen merchandise.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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.

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 – De’Janay Noldon was indicted for a scheme to defraud three elderly victims of more than $30,000.

According to the indictment, Noldon was employed as a certified nurse’s assistant caregiver with SHC, a senior home health care company located in the Eastern District of Missouri. Noldon was assigned to provide in-home care to one of the victims during the period of her employment with SHC.

Noldon assumed the identity of one victim to obtain a credit card and used two other credit cards belonging to the same victim to make numerous personal purchases, obtain cash advances and pay bills. Noldon also accessed bank accounts belonging to all three of the victims.

Noldon, St. Louis County, was indicted by a federal grand jury late Thursday on multiple charges that include mail fraud, bank fraud, identity theft and social security fraud.

If convicted, mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Bank fraud carries a maximum of 30 years in prison and/or fines up to $1 million. Identity theft carries a maximum of 15 years in prison and/or fines up to $250,000. Aggravated identity theft carries a two-year mandatory sentence consecutive to any other term of imprisonment. Social security fraud carries a maximum of five 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.

Anyone believing that they are a victim or having any information may contact the United States Postal Inspection Service at 314-539-9360.

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.

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 – William Cafarella was indicted on multiple fraud charges involving his scheme to obtain in excess of $395,000 in fraudulent proceeds from West County Honda, causing more than $1.8 million in losses to the dealership.

According to the indictment, Cafarella was employed as the General Manager of West County Honda in Ellisville, MO. As part of his contract, Cafarella received monthly bonuses equal to 10% of the profits earned by West County Honda. 

Between September 2011 through June 2013, it is alleged that Cafarella caused fictitious entries to be made in the books of account of West County Honda, misrepresenting to the ownership the profitability of the dealership in order to increase his bonuses. According to the indictment, Cafarella caused West County Honda to report 308 cars having been sold that in actuality had not been sold, causing the manufacturer’s warranty to begin running on each of those cars and decreasing the value of those vehicles to the dealership. The indictment alleges that Cafarella also pocketed more than $50,000 in bribes and kickbacks from third parties that did business with West County Honda, which deprived West County Honda of Cafarella’s honest services. 

Cafarella, Davie, Florida, was indicted by a federal grand jury late Thursday December 1, on four felony counts of wire fraud and one felony count of mail fraud.

If convicted each count of the indictment 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 is being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran 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 – Christopher Schroeder was sentenced to 15 years in prison on charges of transporting a minor across state lines to engage in criminal sexual activity.

According to court documents, in late October 2015 or early November 2015, Schroeder met a 15-year-old female through KIK, an internet chat forum, who was living in Brooklyn, Ohio. Schroeder drove to Brooklyn and picked her up at an agreed upon location, and drove them to his residence in Marthasville, MO.  Sometime after arriving at his home, he engaged in sexual intercourse with her, and he recorded two of the sex acts without her knowledge.

Schroeder, Marthasville, MO, pled guilty in July to one felony count of transportation of a minor with intent to engage in criminal sexual activity. He appeared today for sentencing before United States District Judge Henry Autrey.

This case was investigated by the Federal Bureau of Investigation, the Brooklyn Police Department, St. Charles County Internet Crimes Against Children Task Force and the Warren County Sheriff’s Department.  Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Demea Loyd, Salem, MO, was sentenced to three months in prison, plus six months of home confinement, on wire fraud charges involving her embezzlement from Sears.  Additionally, she was ordered to pay restitution of $358,805.

According to court documents, Loyd owned two stores in Washington and Rolla, Missouri.  She entered into a contract with Sears Authorized Hometown Stores, LLC to exclusively distribute Sears merchandise from these two stores.  The contract called for Loyd to distribute Sears merchandise on a consignment basis.  In exchange, Loyd was paid a commission based on the amount of sales.  Loyd was to deposit all proceeds from the sale of the merchandise at each store into a “holding” account until they could be transferred to Sears.  From April 2013 to December 2014, Loyd embezzled $358,805 from Sears, by making unauthorized withdrawals from the holding account and falsifying the monthly statements to hide the missing funds.

Loyd pled guilty in May to one count of wire fraud and appeared today for sentencing before United States District Judge John Ross. 

This case was investigated by the Federal Bureau of Investigation and the Rolla and Washington, Missouri, Police Departments.  Assistant United States Attorney John Ware handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Deborah Pierce, St. Louis, Missouri, was indicted today for embezzling more than $380,000 from a joint educational venture between her employer, Webster University, and a Chinese government cultural agency. 

According to the indictment, Pierce was appointed the director of the Confucius Institute at Webster University and was entrusted with the oversight of the Institute’s funding, which came mainly from Webster University and the People’s Republic of China.  According to the indictment, in September 2013, Pierce established a separate, unauthorized bank account over which she had sole control and directed the funds of the Confucius Institute through it.

Between September 2013 and June 2016, it is alleged that Pierce diverted more than $380,000 to herself from the Institute’s funds by writing checks to cash, checks to herself and paying various personal bills and accounts and those of her family members.

If convicted of mail fraud, Pierce faces a term of imprisonment of up to 20 years, a fine of up to $250,000 or both.  Restitution to the victims is mandatory, and the government is seeking to forfeit a money judgment for all of the embezzled funds.

The case was investigated by the FBI and the U.S. Postal Inspection Service with assistance from Webster University. Assistant United States Attorney Tom Albus 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. 

The United States Attorney’s Office has closed its investigation into certain spending issues regarding the Fox School District and former Fox Superintendent Dianne Critchlow.  The investigation was triggered by a report issued by the Missouri State Auditor in May of this year.   The investigation has concluded with the finding that there is no basis for criminal charges.  The School District has been notified. 

St. Louis, MO – Kilwa Jones, St. Louis, MO, was sentenced to 35 years in prison on multiple charges involving the September 25, 2015, shooting of Christopher Sanna, as well as the robberies of both Sanna and his companion, Lisa Simpson. The robberies and the assault occurred near the Old Cathedral in the northbound lanes of Memorial Drive, which is part of the Jefferson National Expansion Memorial.

According to court documents, on September 25, 2015, victims Christopher Sanna and Lisa Simpson were walking back to their car, which was parked on the Old Cathedral parking lot, after attending a St. Louis Cardinals baseball game.  Kilwa Jones confronted them with a semi-automatic pistol and demanded their property. As the victims attempted to ignore Jones and walk toward their vehicle, Jones shot Sanna in the back, rifled his pants pockets as he lay paralyzed on the ground and forcibly grabbed Simpson’s purse. Jones then jumped into a car and drove away.

Jones pled guilty in July to assault with a dangerous weapon while on federal property, possession of a firearm in furtherance of a crime of violence, two counts of robbery while on federal property and the charge of being a felon in possession of a firearm.  He appeared today for sentencing before United States District Judge Catherine D. Perry.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department.  Assistant United States Attorney John Bird handled the case for the U.S. Attorney’s Office.

St. Louis, MO -  United States Attorney Richard Callahan today announced that on Election Day, the United States Attorney’s Office will have a hotline for citizens to call on election day regarding complaints of possible election fraud, voter intimidation and any other forms of election abuses.  Hotline calls will be answered by Assistant United States Attorneys from the time the polls open at 6 a.m. until the polls close at 7 p.m.  The hotline number is 314-539-7733.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes and marking ballots for voters against their wishes or without their input.  Federal law also protects voters from acts of intimidation and harassment.

In addition to the United States Attorney’s Office, the St. Louis FBI will also have special agents available to receive allegations of election fraud and other election abuses on election day.  The St. Louis FBI field office can be reached by the public at 314-589-2500.

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

United States Attorney Callahan said, "Ensuring free and fair elections depends in large part on the cooperation and vigilance of the American people.  It is imperative that those who have specific information about discrimination or election fraud report that information to the local election authority, my office, the FBI or the Civil Rights Division."

St. Louis, MO – Damarcus Boyd, aka Mez, pled guilty to charges involving a September 2015 kidnapping.

According to court documents, in September 2015, co-defendant Ortega Mitchell, aka Munk Milano, and the victim agreed that the victim would travel to St. Louis from San Diego, California, in connection with a marijuana transaction.  Unknown to the victim, Mitchell, Boyd and co-defendant Darius Rose planned to kidnap the victim and hold him for ransom.

On September 25, the victim flew from San Diego, California, to St. Louis where he was picked up by Boyd and Mitchell and taken to a house in Illinois.  When they entered the house, the victim was confronted by Rose with an assault rifle.  Rose threatened to blow the victim’s brains out and ordered him onto the floor.  The kidnappers rifled through the victim’s pockets and took his cell phone and wallet.  Boyd bound the victim’s hands and feet with duct tape, and the kidnappers kept him captive in a bedroom of the house.

On September 26, Rose made various ransom calls to the victim’s father demanding $100,000 and marijuana.  Rose, sometimes accompanied by Boyd, left the house in Illinois and traveled to the Glenfield Apartments in Overland, Missouri, to make the ransom calls.  The victim’s family contacted law enforcement, and the Federal Bureau of Investigation (FBI) became involved.

Finally, on September 30, Rose, Mitchell  and Boyd drove the victim from Illinois to the area of Columbia and Hampton in the City of St. Louis.  The kidnappers told the victim to get out of the vehicle and drove away, leaving the victim in the street.  The victim walked to a nearby gas station and called his father to inform him he had been freed.

Boyd, East St. Louis, Illinois, pled guilty to one count of conspiracy to kidnap before United States District Ronnie L. White. Sentencing has been set for February 8, 2017.

Co-defendant Ortega Mitchell pled guilty to the same charge in October and awaits sentencing.  Co-defendant Darius Rose is awaiting trial.

The conspiracy charge carries a maximum penalty of life 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 Federal Bureau of Investigation. Assistant United States Attorney Cristian M. Stevens is handling the case for the U.S. Attorney’s Office.

The charges set forth in an indictment are merely accusations, and defendant Rose is presumed innocent until and unless proven guilty.

St. Louis, MO – Nine people living in the Phoenix, Arizona, area have been charged in federal court in a multi-count indictment arising from their participation in a fraudulent telemarketing enterprise. The enterprise generated in excess of $10,000,000 in sales from individuals across the United States and Canada and specifically targeted persons over the age of 55.

According to the indictment, which was unsealed earlier this week, beginning sometime prior to 2013 and continuing until July 2015, the defendants operated a telemarketing enterprise selling false and fictitious “business opportunities.” The Phoenix, Arizona, based telemarketing enterprise operated under multiple business names and utilized multiple business entities over the course of the scheme, including Smart Business Pros, LLC of Warson Woods, Missouri.

The charges include conspiracy to commit mail, wire and bank fraud; wire fraud; mail fraud and money laundering.

If convicted of wire fraud or mail fraud in connection with telemarketing, the defendants face up to 30 years in prison, a fine of $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.

This case is being investigated by the Office of the Arizona Attorney General, United States Postal Inspection Service, IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Charles Birmingham 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 – Tamara Jones, St. Louis, Missouri, was charged with theft of government funds and misappropriation in connection with her service as a fiduciary representative of an area disabled veteran.

According to the indictment, Jones was enrolled as a financial fiduciary through the United States Department of Veterans Affairs.  As such, she was eligible to handle the financial affairs of disabled veterans pursuant to an agreement with the VA.  In September 2014, having been appointed fiduciary for a disabled veteran living in St. Louis County area, whose initials are A.W., Jones drained most of a $38,000 back pay award she found in his financial account.

Jones is also accused of failing to maintain records and file required reports and accountings of A.W.’s affairs.  When confronted by VA auditors and investigators, Jones could not explain the situation and repeatedly failed to provide records, reports or A.W.’s funds despite repeated promises to do so.

The indictment was returned Wednesday, October 26.  Jones is expected to appear in federal court later this week.

If convicted of theft of government funds, Jones faces up to 10 years in prison.  If convicted of misappropriation by a fiduciary, she faces up to 5 years in prison.  Both counts also carry the possibility of a fine of up to $250,000.  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. 

The case was investigated by the U.S. Department of Veterans Affairs-Office of the Inspector General. Assistant United States Attorney Tom Albus 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 – Cristopher Cristea and David Corey Tolle were sentenced to 46 months in prison and ordered to pay restitution of $1,724,158; and three years probation and restitution of $526,750, respectively, on charges involving the solicitation of investors with promises of large returns from mining activities. Instead, the money was used to pay personal expenses and repay earlier investors.  Tolle was sentenced today. Cristea was sentenced last week.

According to court documents, Cristea and Tolle formed Cristol Enterprises, LLC and Charis Minerals, Inc.  They solicited investors for Cristol Enterprises, LLC and Charis Minerals, Inc., which purported to be in the business of exploring for and extracting valuable minerals, such as gold, silver, copper, lead and zinc, through mining operations in the western United States, including Arizona and Oregon, and in Western Africa.  The investors were told that the money would be used to purchase property and equipment and pay for administration and other expenses involved in the exploration. They were promised large returns on their investments, often over a short period of time.  Instead, a substantial majority of the money was used for personal expenditures and unrelated business expenses.  In one instance, Cristea used funds to provide student loans to beauty academy students, and in another instance, funds were used to repay an earlier investor.

In December 2014, after previously having been arrested on this indictment, Cristopher Cristea applied for a $1 million line of credit at a bank.  In the application, he falsely stated that he was not a defendant in any suit or legal action.  Additionally, he falsely stated that he had $295,000 cash in checking accounts and had securities – stocks/bonds/mutual funds – in the amount of $13,000,000.  

David Corey Tolle, O’Fallon, MO, pled guilty earlier this year to one felony count of wire fraud.  Cristopher Cristea, St. Charles, MO, pled guilty earlier this year to one felony count of conspiracy, four felony counts of wire fraud, one felony count of money laundering and one felony count of making a false statement to a financial institution. Both defendants appeared before United States District Judge Carol E. Jackson. 

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

St. Louis, MO – Adam Bernaix, Edwardsville, Illinois, was sentenced to 37 months imprisonment on a fraud and money laundering scheme involving false invoices submitted to his employer on behalf of a shell company he created. 

According to his plea agreement, Bernaix earned approximately $350,000 through Trident Management Solutions, a company he created solely to bill companies doing business with his employer.  Bernaix submitted invoices for "services rendered" to companies doing business with his employer, Albert Arno, an HVAC contractor in the City of St. Louis.  Bernaix, as a project manager for Albert Arno, was able to mark up the invoices of Trident’s clients to Albert Arno so that his employer provided the extra money needed for Trident’s clients to pay their Trident bills. 

Bernaix employed his father-in-law at one point to perform occasional jobs, but even after Trident’s sole employee left the company and Trident did absolutely nothing for its clients, Bernaix still sent Trident clients bills and marked up the client’s Albert Arno bills sufficiently to keep the money flowing to Trident.

Bernaix pled guilty in July to two felony counts of mail fraud and two felony counts of money laundering.  He appeared today for sentencing before United States District Judge Henry Autrey.  In addition to his term of imprisonment, Bernaix was ordered to pay $427,713 in restitution to the victim of his crime.

The case was investigated by the Federal Bureau of Investigation, U.S. Postal Inspection Service and IRS Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office. 

St. Louis, MO – Francis Frost, Sante Fe Springs, CA, was sentenced to 10 years in prison on charges of conspiring to import and distribute methamphetamine and cocaine into the St. Louis area via the commercial airlines, and for conspiring to violate airport security requirements. 

Two co-defendants, Poe Purcell and Chalamar Schultz Tuipelehake, have pled guilty to related charges and await sentencing later this year.

According to court documents, Purcell began working as an American Airlines Cargo Fleet Service Clerk at Los Angeles International Airport in 2001.  During the course of the conspiracy, including the time period between February and May 2015, Tuipelehake arranged for California drug traffickers to transport illegal controlled substances from Los Angeles, California, on commercial airliners using Purcell’s position with the airlines to avoid detection and facilitate the transport.  Frost’s role involved retrieving the suitcases containing the drugs and distributing the drugs.

This case was investigated by the Drug Enforcement Administration in St. Louis and Orange County, California, and the Federal Bureau of Investigation in St. Louis, Los Angeles and LAX Airport.

St. Louis, MO – Three Franklin County, Missouri, residents have entered guilty pleas before United States District Judge John A. Ross involving their participation in a conspiracy to commit identity theft and access device fraud in the Eastern District of Missouri.

John Dean Townsend, Pacific, MO, pled guilty today to one felony count of conspiracy to commit identity theft and access device fraud.  Sentencing has been set for February 1, 2017.

Jessica L. Franklin, Beaufort, MO, pled guilty October 3 to one felony count of conspiracy to commit identity theft and access device fraud and one felony count of aggravated identity theft.  Franklin is scheduled for sentencing on January 10, 2017.

Jesse Ray Chitwood, St. Clair, MO, pled guilty September 28 to one felony count of conspiracy to commit identity theft and access device fraud.  Chitwood is scheduled for sentencing on January 4, 2017.

According to court documents, Townsend stole the personal identification information of his customers while he was employed at an automotive dealership located in St. Louis County.  He sold the information to Franklin.  Franklin used the stolen identification information to manufacture fraudulent Missouri Department of Revenue temporary driver’s licenses, which Franklin and Chitwood used to open lines of credit and purchase merchandise at various retailers throughout the Eastern District of Missouri.

Conspiracy to commit identity theft and access device fraud carries a maximum penalty of five years in prison and/or fines up to $250,000. Aggravated identity theft carries a mandatory two-year term of imprisonment that must run 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.

This case was investigated by the Franklin County Sheriff’s Office; the Washington, Missouri Police Department; the Ballwin Police Department and the Kirkwood Police Department.  Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Syed Tariq Ali, St. Louis, Missouri, was arrested this morning on a two-count indictment alleging false statements with respect to federal housing program and bank fraud. 

According to the indictment, Ali accepted illegal payments outside of a HUD lease during 2013 and 2014 and granted his tenant an interest in the rental property, contrary to his landlord certifications.  Ali is also accused of falsifying endorsements on checks intended for needy members of his mosque between 2008 and 2010.

If convicted, Ali faces up to five years in prison on the HUD false statement charge, a fine of $250,000 or both.  Ali also faces up to 30 years in prison on the bank fraud charge, a fine of up to $1,000,000 or both.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  The government will also seek restitution to all victims.

The case was investigated by the U.S. Department of HUD-Office of the Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus 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 – Haben Sebhatu, Seattle, Washington, was sentenced to 63 months in federal prison for participating in two stolen identity credit card fraud rings that were disrupted in St. Louis.

Sebhatu’s conduct included credit card fraud activities in Missouri, Washington, Indiana and Arkansas.  Sebhatu was arrested by the Ladue Police Department after a traffic stop on March 25, 2016, which revealed numerous counterfeit credit cards and a card encoding machine in his vehicle.

Sebhatu pled guilty in July to one felony count of credit card fraud, one count of possessing device making equipment and nine counts of aggravated identity theft. He appeared today for sentencing before Judge Audrey G. Fleissig.      

The case was investigated by the Ladue (Missouri) Police Department, the U.S. Secret Service and the Pierce County (Washington) Prosecuting Attorney’s Office.  Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Timothy Rosselli, aka Timothy Rossell, aka Austyn Gardner, aka Austyn Labella, Union, Missouri, was arrested today on a federal arrest warrant charging him with impersonating a federal agent.

According to the criminal complaint filed in United States District Court yesterday, Rosselli had been living with a girlfriend in the Union, Missouri, area and holding himself out as a Deputy United States Marshal named Austyn Gardner.  When Rosselli left his Union residence suddenly on October 9, his girlfriend called the local police who, with the help of the U.S. Marshals Service, quickly determined Rosselli’s identification and other USMS paraphernalia where counterfeit and fraudulent. 

The investigation soon identified a second girlfriend in Ft. Myers, Florida.  This second girlfriend knew Rosselli as "Austyn Labella," a deputy United States Marshal for whom she had purchased two sports cars, including a white Lamborghini.  This second girlfriend directed investigators to Effingham, Illinois, where Effingham police located him attempting to purchase a bus ticket.  Rosselli had explained to the second girlfriend that the Lamborghini had blown a tire and he needed alternate transportation.

Rosselli appeared in court this morning in St. Louis.  The government has sought Rosselli’s detention pending trial.  Rosselli has numerous prior convictions for fraud and deceit and is wanted on parole violations in Missouri courts and in his native state of Pennsylvania.   If convicted of impersonation of a federal officer, Rosselli faces up to three years imprisonment, a fine of up to $250,000 or both.  Restitution to any victims of his deception will also be sought.

Rosselli is suspected of deceiving others into believing he was a federal officer. Anyone with information on Rosselli or any of his aliases is requested to contact the U.S. Marshals Service – Investigations Bureau at 314-539-2040.

This case was investigated by the United States Marshals Service with assistance from the Union (Missouri) Police Department and the Effingham (Illinois) Police Department.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

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.

St. Louis, MO –Former Pine Lawn Lieutenant Steven Blakeney was sentenced to 51 months in prison on criminal civil rights charges arising from his arrest in 2013 of a candidate for the office of Mayor of the City of Pine Lawn.

According to testimony presented at trial, on March 31, 2013, Blakeney, while a police officer with the City of Pine Lawn Police Department, conspired with others to cause the arrest of a mayoral candidate based on false allegations and without probable cause. Blakeney ordered another person to falsely report that the mayoral candidate had stolen a campaign poster from a local business and then arranged for the candidate to be arrested.

Blakeney was convicted in January of one felony count of conspiracy against rights; one count of deprivation of rights under color of law and one count of falsification of records.  He appeared today for sentencing before United States District Judge Stephen N. Limbaugh, Jr., who had the defendant remanded into the custody of United States Marshals.

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

St. Louis, MO – Charles Hicks, Fenton, Missouri, pled guilty to a one-count mail fraud indictment this afternoon. 

According to his plea agreement, Hicks devised a false invoice scheme to defraud two successive employers, RockTenn Company and MarChem Company, over the course of two and a half years.  Hicks had authority to identify vendors and authorize purchases and used dummy companies to submit and receive payments for false invoices.  In all, Hicks admitted to defrauding the two companies of $370,000.

Hicks appeared before U.S. District Judge Stephen N. Limbaugh, Jr. Sentencing has been set for January 4, 2017.

Hicks faces a maximum penalty of 20 years in prison and/or a fine of $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victims is also mandatory.

This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

WASHINGTON – A federal jury sitting in St. Louis, Missouri, found the local owner of tax return preparation businesses guilty of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.

"While Semere Tsehaye was operating tax return preparation franchises in three states, he was generating false financial summaries and filing fraudulent returns to evade paying his own taxes," said Principal Deputy Assistant Attorney General Ciraolo.  "No one is above the law, and the department will continue to prosecute those who seek to violate our nation’s tax laws."

According to the evidence at trial, Semere Tsehaye, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East Saint Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri, from 2005 to 2011.  ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio.  Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).

The evidence at trial showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer.  The evidence also showed Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS).  These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,000 in 2010 and $1.03 million in 2011, causing a tax loss of more than $580,000.

"Mr. Tsehaye’s attempt to evade his taxes by creating false financial summaries to conceal over $1.5 million of income and by filing false tax returns is a theft from the American public," said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation.  "We all pay when others swindle the government."

In 2013, a Kansas City, Kansas, federal court permanently enjoined Tsehaye and A&S from further operating a tax preparation business or preparing federal tax returns. 

Sentencing is scheduled for January 4, 2017.  Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who are prosecuting the case.  Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their assistance.

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

St. Louis, MO – Ian Mackie was sentenced to 14 years in prison on multiple child enticement charges.

According to court documents filed at the time of the plea, Mackie used several social media sites, email and text messages to communicate and entice two males, 13 and 15 years old, respectively, to engage in sex acts with him.

Mackie, Ballwin, MO, pled guilty in June to one felony count each of attempted receipt of child pornography; online enticement of a minor; receipt of child pornography and attempted online enticement of a minor. He appeared today for sentencing before United States District Judge Rodney W. Sippel.

This case was investigated by the St. Louis County Police Department, the Missouri Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney's Office.

St. Louis, MO – Latricia Newell was sentenced to 48 months in prison involving her use of counterfeit credit cards to purchase gift cards in the St. Louis area.

According to court documents, on January 31, 2016, a Chesterfield, Missouri, police officer received a call that Latricia Newell had used a credit card embossed in her name to purchase gift cards.  However, when the receipt was printed, it revealed that the account number used to make the purchase had been issued to an individual other than Newell.  When the officer approached her vehicle, he noticed 20 cards had fallen out of her purse.  By searching her car, the officer found 51 gift cards that had been fraudulently purchased, and 64 credit/debit cards embossed in Newell’s name.  The 64 credit/debit cards were similar to the card which triggered the investigation in that the magnetic strips on the back of the cards were encoded with the account numbers of others.  Newell advised the arresting officers that she had traveled to the St. Louis metropolitan area from California with the cards in her possession.

After her arrest, law enforcement officers discovered her use of re-encoded credit cards to purchase gift cards and other merchandise in the Missouri cities of St. John, Brentwood, Clayton, and Hazelwood.  When the magnetic strips found on the back of the cards in defendant’s possession were scanned by law enforcement officers, the officers discovered that the account numbers had been issued by financial institutions to more than 60 individuals.  Further investigation by the United States Secret Service revealed that on February 21, 2014, airport authorities in Austin, Texas, discovered more than 323 gift cards and 39 re-encoded cards during a routine screening of baggage that was to be flown from Austin, Texas, to Los Angeles, California.  Of the 39 counterfeit cards discovered, 38 were embossed in Newell’s name.  Newell was on the manifest for the flight.   

Newell, Harbor City, CA, pled guilty in June to one felony count of possession of 15 or more counterfeit credit cards, two felony counts of aggravated identity theft and one count of use of unauthorized access devices.  She appeared today for sentencing before United States District Judge Catherine D. Perry.

The case was investigated by the Missouri police departments of Chesterfield, St. John, Brentwood, Clayton and Hazelwood and the United States Secret Service.  Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.   

St. Louis, MO – Darrin Landes pled guilty to wire fraud charges involving his scheme to sell sporting event tickets, but not delivering them to the purchasers after they sent payment to him.

According to court documents, from September 2015 to July 2016, Landes offered to sell tickets to sporting and entertainment events including the 2016 Kentucky Derby, the 2016 Masters golf tournament in Augusta, Georgia, and St. Louis Cardinals games. On some occasions, he offered to sell accommodations at hotels, resorts and/or homes. He frequently did not have tickets to sell to these prospective purchasers, and when he did have one ticket to an event, he attempted to sell the same ticket to someone else.

Landes and the prospective purchasers discussed the price for these tickets through face-to-face conversations, emails, texts and/or telephone conversations. The purchasers agreed to pay Landes and upon receipt of payment would send them the purchased items.  Landes instructed the purchasers to send payment to him by wire transaction to either his PayPal account, one of his alleged business acquaintance’s PayPal accounts or, on some occasions, he met with the purchaser and obtained the money for the items he was selling. After the purchasers sent money to Landes and they did not receive the items that they paid for, and they attempted to contact Landes, he offered some excuse for the delay in sending the purchased item.

Landes , Ballwin, MO, pled guilty to one felony count of wire fraud before United States District Judge Rodney Sippel. Sentencing has been set for December 16, 2016.

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.

This case was investigated by the Federal Bureau of Investigation and the Kirkwood Police Department. Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney's Office.

St. Louis, MO – Darren Randal Wilson pled guilty to nine counts of wire fraud involving his misappropriation of over $80,000 from the Ethical Society of Police, an association of black St. Louis police officers.

According to court documents, Wilson was president of the Ethical Society of Police (ESOP) in 2013 and 2014.  As president of ESOP, Wilson had access to funds in the ESOP bank account, which consisted primarily of the monthly dues contributed by the police officer members of ESOP.

Between July 2013 and December 2014, Wilson engaged in a fraud scheme to misappropriate money from the ESOP bank account and to use the money for his own purposes, including funding his business promoting comedy shows featuring nationally known comedians at local night clubs.  To further the fraud scheme, Wilson transmitted some of the misappropriated money by Fed Wire, PayPal and Western Union wire transfers.  To conceal his fraudulent activity, Wilson presented false information to ESOP officers and members.  In April 2014, Wilson was indicted on nine felony counts of wire fraud associated with the fraud scheme.

Wilson, St. Louis, Missouri, appeared before United States District Judge Henry Edward Autrey and pled guilty to all nine counts of wire fraud.  As part of the guilty plea, Wilson acknowledged that he abused his position of public and private trust.  He agreed to a money judgment against him of $80,934, to account for the losses to ESOP associated with the fraud scheme.  He also agreed to surrender his law enforcement certification and to no longer work or seek employment as a law enforcement officer.  Sentencing has been set for December 12, 2016.

Each count carries a maximum penalty of 20 years in prison and/or a fine 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 substantially lower than the statutory maximum.

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

St. Louis, MO – Robert S. Beyer, II, was convicted of wire fraud and money laundering charges involving a scheme to lure investors into investing money with Heroic Life Assurance Company, LLC, a fraudulent enterprise that Beyer created in order to steal money from his clients.

According to testimony presented at trial, starting in 2011, Beyer, who had previously sold life insurance annuities and other investment products to the victims, solicited his clients to place their money with Heroic Life Assurance Company, which Beyer assured them was a safe investment. Some victims were promised returns between 8 and 18 percent per year, and others were told that they would be able to withdraw their money from the investment at any time. What Beyer did not tell his victims was that he had no intention of keeping their money safe, but instead intended to spend it to support his own lifestyle. Evidence at trial established that Beyer spent his clients’ money on personal bills such as car repairs, child support and dating services. Beyer also used money from his victims to pay the expenses of Heroic Life Assurance Foundation, a non-profit entity that Beyer planned to use to recruit new victims by offering businesspeople free entrepreneurship classes. To conceal the true source of the Foundation’s funding, Beyer created a fictional persona named Jesus Cristobal, a wealthy South American financier who was supposedly bankrolling the Foundation’s operations. In total, Beyer’s victims lost nearly $300,000.

Beyer, Kirkwood, MO, was convicted of one felony count of wire fraud and one felony count of money laundering. The three-day trial was held before United States District Judge Ronnie L. White. Sentencing has been set for December 7, 2016.

Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Each of the money laundering charges carry a maximum penalty of 10 years and/or $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 Kirksville Office of the Federal Bureau of Investigation. Assistant United States Attorneys Richard Finneran and Amanda Wick are handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Kenneth Edwards, St. Louis City, was indicted on wire fraud and identity theft charges involving a scheme to use counterfeit checks to make purchases at local Walmart and Sam’s stores.

According to the indictment, from August to December 2015, Edwards used a stolen account number and routing number to purchase valuable goods from retail stores using forged or counterfeit checks.  Edwards allegedly obtained a checkbook, identification and other information after it was stolen from a victim on August 2015.

Edwards was indicted by a federal grand jury August 17th on three felony counts of wire fraud and one felony count of aggravated identity theft.  He appeared in federal court Thursday afternoon, September 8th.

If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Aggravated identity theft carries two 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 Maplewood Police Department.  Assistant United States Attorney Tom Albus 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 – Raja Chellappa, of St. Louis County, pled guilty to two counts of wire fraud in connection with his solicitation and acceptance of a fictitious “buyer’s premium” as part of a 2015 commercial real estate transaction. 

According to his plea agreement, Chellappa falsely told a buyer of a St. Charles County motel property that the seller had demanded a $50,000 “buyer’s premium” when no such demand had been made.  The buyer agreed to pay the extra $50,000, which Chellappa directed the buyer to wire into his personal bank account.  The $50,000 was not disclosed to the seller or to Chellappa’s real estate company during the escrow and closing process.

Chellappa pled guilty before Judge Catherine D. Perry, who set sentencing for December 14, 2016.

Each count of wire fraud carries a maximum penalty of 20 years imprisonment and/or a fine of $250,000.  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 St. Louis Division of the FBI and the United States Postal Inspection Service.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.