Eastern District of Missouri

St. Louis, MO - Michael Prisner, Ewing, Missouri, was sentenced to 42 months in prison on charges involving his possession of child pornography between April and June 2015.

Prisner pled guilty in June to two felony counts of possession of child pornography.  He appeared today in St. Louis for sentencing before United States District Judge Catherine D. Perry.

This case was investigated by the Kirksville Office of the Federal Bureau of Investigation, the Kirksville ICAC (Internet Crimes Against Children), Kirksville Police Department and the Lewis County Sheriff's Office.  Assistant United States Attorney Coleen Lang handled the case for the U.S. Attorney's Office.

St. Louis, MO – Michael Allen Clow, Maywood, MO, pled guilty to multiple charges involving his concealment of his employment while collecting disability payments. From 2001 through 2012, Clow received approximately $273,634 in Social Security Administration (SSA) disability insurance benefits as a result of this illegal scheme.

According to court documents, in 1999, Michael Allen Clow submitted an application for disability insurance benefits with the Social Security Administration (SSA) stating that he was unable to work due to chronic low back pain.  In his application he agreed to notify the SSA if his medical condition improved so that he could work or if he went to work as an employee or a self-employed person.  He began receiving benefits that year.  During 2001 Clow began working with his father building homes.  In 2002, he and his wife, Laura Clow, went into business together and started a construction business called C & M Construction.  From 2002 to 2012 Clow worked for C & M Construction providing manual labor.  During this time he filed reports to SSA claiming he was still unable to work. 

While Michael Clow received payments from SSA, his wife, Laura Clow, assisted in the fraud by placing the business in her name, and falsely claimed that he was disabled and unable to bend over, do house and yard work and general daily activities.

Michael Clow pled guilty to one count of conspiracy to commit theft of government property, one count of concealment and two counts of making false statements to the Social Security Administration. He appeared before United States District Judge Catherine D. Perry.  Sentencing has been set for December 9, 2016.

Laura Clow pled guilty to one count of conspiracy to commit theft of government property before United States Magistrate Judge John Bodenhausen.  Her sentencing has also been set for December 9th.

The conspiracy charge carries a maximum penalty of one year in prison and/or fines up to $100,000.  Each of the other charges 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.

This case was investigated by the Social Security Administration-Office of Inspector General.  Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Ricker Brooks was sentenced to 18 months in prison and ordered to pay restitution of $99,273 on charges involving his preparation of false tax returns. Brooks overstated business expenses of a client for the tax years 2009 and 2010.  Brooks owns Brooks Accounting Service, providing accounting and tax preparation services.  Zondra Jones owns Alliance In-Home Care Services, which provides home health care services to individuals.

According to court documents, after Jones reviewed the tax returns that Brooks prepared for her, she thought that the contract labor expense for her business was overstated.  Although there was discussion between the two of them regarding the overstatement, Jones and Brooks agreed to file the tax returns with the overstatement.  After the IRS began to investigate the returns, Brooks prepared false 1099 forms and check schedules which falsely represented payments made by Alliance In-Home Care Services to contract employees.  Jones provided these false documents to the IRS.

"Knowingly falsifying documents filed with the IRS is a crime,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.  “We hope today's sentence sends the strong message that tampering with the integrity of our nation's tax system will result in jail time."

Brooks, St. Louis County, pled guilty in May to one felony count of conspiracy to defraud the U.S. and two felony counts of aiding and assisting in the preparation of a false income tax return. He appeared today for sentencing before United States District Judge Ronnie L. White. Brooks was taken into custody immediately following his sentencing.

Zondra Jones, Florissant, pled guilty last November to related charges. She was sentenced in May to probation for a term of three years and restitution of $99,273.

This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick handled the case for the U.S. Attorney's Office.

St. Louis, MO – Julie A. Fish was indicted on charges involving a bankruptcy scheme and concealing assets.

According to the indictment, Fish filed for bankruptcy in February 2014.  The indictment states that she understated the value of her home in Ellisville by listing the value as $145,000.  The property sold for $289,900.  Additionally, in her Schedule B, Personal Property declaration she understated or failed to list the value of clothing, furs and jewelry by several thousand dollars. Also, as part of her preparation for the bankruptcy filing, Fish delivered several items of valuable jewelry to a local jewelry store to be sold on consignment, which she failed to list on the Schedule B document.   

Fish, Ellisville, MO, was indicted by a federal grand jury on July 27, on one felony count each of bankruptcy fraud, making false statements in bankruptcy and concealment of bankruptcy assets.  She was arraigned in federal court this morning.

If convicted, each count of the indictment carries a maximum penalty 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.     

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.

Cape Girardeau, MO – Bobby David Lowrey was sentenced to 24 months in prison on multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.

According to court documents, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms, Lowrey and Lowrey, Inc. of Parma, Missouri, John Radin Farms and Kathy Ellsworth Farms.

Bobby David Lowrey placed farms in other people’s names in order to obtain federal farm subsidy payments that he was not entitled to receive under the Direct and Counter-Cyclical Payment Program.  The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey and not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-Cyclical Payment Program. 

From 2007 to 2012, Bobby David Lowrey obtained $240,367 in direct and counter-cyclical payments in the name of John Radin Farms.  Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012. 

The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security, and reported that his employees were on a temporary layoff, when in reality they were still working and being paid.  The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of Unemployment Insurance benefits being paid to employees that they were not eligible to receive.

Bobby David Lowrey, Parma, MO, pled guilty in May to two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud.  He appeared today in Cape Girardeau for sentencing before United States District Judge Stephen N. Limbaugh, Jr.

This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks handled the case for the U.S. Attorney’s Office.

Cape Girardeau, MO – The co-owner of B & H Convenience was sentenced to twenty-one months imprisonment on charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program.  Patrick Buck admitted with his plea last May that he illegally redeemed up to $550,000 in SNAP benefits between January 2010 and March 2014. Buck was ordered to pay $550,000 in restitution to the United States Department of Agriculture (USDA), which administers this program nationwide.

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

Patrick Buck, Cape Girardeau, MO, pled guilty in May to four felony counts of unauthorized use of SNAP benefits.  He appeared today in Cape Girardeau for sentencing before United States District Judge Ronnie L. White.            

This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations, Sikeston Department of Public Safety. Assistant United States Attorney Anthony L. Franks handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Richard Gross, Winfield, MO, was sentenced today to 150 months in prison on multiple counts involving the trafficking of synthetic drugs.  Additionally, as part of these convictions, the defendants have agreed to the forfeiture of assets and property totaling in excess of $6.5 million.

According to court documents, Richard Gross and co-defendant Paul Berra manufactured synthetic cannabinoids known on the street as “K 2” and “Incense” and synthetic cathinones known on the street as “Bath Salts.”   These products were sold to stores in a number of states.  However, their largest customer was Gross’ mother, co-defendant Pam Tabatt, who was the largest retailer of synthetic drugs in the Eastern District of Missouri.  She sold the synthetic drugs through South 94 Bait and Tackle in St. Charles County and Smoke Sensations, Nights of Rave in St. Louis County. 

Gross, Winfield, MO, pled guilty in April to one felony count each of conspiracy to distribute and possess with the intent to distribute controlled substance analogues intended for human consumption, conspiracy to fraudulently receive and distribute misbranded products in interstate commerce, conspiracy to import controlled substance analogues into the United States and conspiracy to receive, sell and facilitate transportation of smuggled goods.  He appeared today for sentencing before United States District Judge John A. Ross.

Pamela Tabatt, St. Peters, MO, pled guilty to related charges in March. She was sentenced July 20 to 150 months in prison and ordered to pay a $25,000 fine. Paul Berra, Jr., Warrenton, MO, entered his plea in January and was sentenced in May to 34 months in prison.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation, Drug Enforcement Administration, the Postal Inspection Service and the Federal Bureau of Investigation.  Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, MO Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern IL, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorney's offices in St. Louis County, MO; St. Charles County, MO; Madison County, IL and St. Clair County, IL.  Assistant United States Attorneys James Delworth and Erin Granger handled the case for the U.S. Attorney's Office.

St. Louis, MO – David and Mung Nguyen were indicted on charges involving a bankruptcy scheme and concealing assets.

According to the indictment, David and Mung Nguyen filed for bankruptcy in March 2015.  In preparation for the bankruptcy filing, they purchased valuable household goods and furnishings, apparel, handbags and jewelry, and made over $25,000 in credit card cash withdrawals. The indictment states that they failed to list at least $100,000 of these items as assets on the bankruptcy petition. Additionally, after filing the petition for bankruptcy, David Nguyen filed a claim with AAA auto insurance company for damage caused to his 2011 Mercedes, and received payment for the damage.  He failed to notify the trustee that he received the payment, and he did not use the money to have the car repaired. 

David Nguyen and Mung Nguyen, both of O’Fallon, MO, were indicted by a federal grand jury on July 27 on one felony count each of bankruptcy fraud, making false statements in bankruptcy and concealment of bankruptcy assets.  They are expected to appear in federal court this afternoon.

If convicted, each count of the indictment carries a maximum penalty 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.     

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 – Three area people, including an inmate at the Jennings Correctional Facility, were indicted on multiple fraud counts involving a conspiracy to commit various fraudulent schemes, including check-kiting, which they term as “piggybacking.” Check-kiting occurs when an individual takes advantage of the small window of time between when checks are deposited into an account and the financial institution upon which the checks are drawn provides notice to the depositing institution that the check will not be honored. 

According to the indictment, the purpose of the conspiracy was to open bank accounts at Bank of America and U.S. Bank and use an existing account at Regions Bank to deposit worthless checks.  They disbursed from the artificially inflated accounts through cash and ATM withdrawals, writing checks and making debit card purchases before the worthless checks were determined to be invalid by Bank of America, U.S. Bank and Regions Bank. Taion Brown and Pierre Watson recruited Justice Carter and other individuals to open bank accounts and provide checks from existing accounts in exchange for payment for their participation in the scheme to defraud Bank of America, U.S. Bank and Regions Bank. 

Taion Brown, St. Louis, MO, and Pierre Watson, St. Louis, MO, were indicted by a federal grand jury on August 3 on one felony count each of conspiracy to commit bank and wire fraud, three felony counts of bank fraud and one felony count of aggravated identity theft.  Justice Carter, St. Louis, MO, was indicted on one felony count of conspiracy to commit bank and wire fraud and one felony count of bank fraud.

If convicted, each count of conspiracy to commit bank and wire fraud and bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. Aggravated identity theft is a mandatory two years in prison, 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 United States Secret Service, the Federal Bureau of Investigation and St. Louis County Police Department.  Assistant United States Attorney Tracy Berry 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 – Eddie Lee Regans was indicted on multiple fraud charges after using clients' personal information to obtain credit to be used for his personal use, racking up charges of approximately $89,000. 

On January 22, 2010, Eddie Lee Regans pled guilty to the felony offenses of aggravated identity theft and bank fraud stemming from his use of the names of others in order to open business accounts at various financial institutions throughout the St. Louis metropolitan area.  Upon being released from an 84-month term of incarceration, Regans was ordered to submit to the supervision of the United States Probation Office for an additional five years.  One of the terms of supervision prevented Regans from creating, managing or operating any business entity without the written approval of the probation office.

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

Eddie Regans, St. Louis, MO, was indicted by a federal grand jury on Wednesday, August 3, on two felony counts of fraudulent use of access devices, one felony count of mail fraud and six felony counts of aggravated identity theft.       

If convicted, fraudulent use of access devices carries a maximum penalty of 10 years in prison and/or fines up to $250,000; mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and aggravated identity theft is a mandatory two years in prison 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 United States Postal Inspection Service.  Assistant United States Attorney Tracy Berry 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 – James Bowen, Pevely, MO, pled guilty to charges involving his production, receipt and possession of child pornography between January 1, 2014, and February 29, 2016.

According to court documents, Bowen had illegal sexual contact with a minor under the age of twelve in 2014, and took approximately 30 to 40 photographs of her in various stages of undress. During the investigation of Bowen’s computers, law enforcement found over 5,288 images of child pornography and 810 videos of child pornography. Many of these images and videos of child pornography were of minor children under the age of twelve.

Bowen pled guilty to one felony count each of production, receipt and possession of child pornography before United States District Judge Ronnie L. White, in St. Louis.  Sentencing has been set for October 26, 2016.

Production of child pornography carries a penalty range of 15-30 years in prison, receipt of child pornography carries a range of 5-20 years in prison and possession carries a maximum penalty of 20 years in prison.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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

St. Louis, MO – Ronald Bonner, St. Louis, MO, pled guilty to stealing goods from Norfolk Southern Railway trains as they passed through the railroad’s St. Louis terminal.  Bonner admitted to two counts of theft from an interstate shipment involving two separate incidents occurring on October 14, 2015, and February 5, 2016, during which Bonner boarded trains, broke into containers and stole valuable merchandise to be resold.  He entered his plea before United States District Judge John A. Ross. 

Bonner now faces up to three years imprisonment and a fine of up to $250,000 per count.  Restitution to the victim is also mandatory.

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

St. Louis, MO – Adam Bernaix, Edwardsville, Illinois, admitted to 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 clients' Albert Arno bills sufficiently to keep the money flowing to Trident.

Bernaix pled guilty to felony counts of mail fraud and two felony counts of money laundering before United States District Judge Henry Autrey.  Sentencing has been set for October 25, 2016.

Bernaix faces up to 20 years imprisonment on each of two mail fraud counts, up to 10 years imprisonment on each of two money laundering counts and/or fines up to $250,000. Restitution for the victims will be sought pursuant to the Mandatory Victims Restitution Act.

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 is handling the case for the U.S. Attorney’s Office.  

St. Louis, MO – Christopher Schroeder pled guilty to 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 fifteen-year-old female A.B. through KIK, an internet chat forum. A.B. was living in Brooklyn, Ohio, at the time.

On or about November 8, 2015, Schroeder drove to Brooklyn, Ohio, and picked up fifteen-year-old A.B. at an agreed upon location.

Schroeder drove them to his residence in Marthasville.  Sometime after arriving at his home, he engaged in sexual intercourse with A.B. Two of these sex acts were recorded by Schroeder without the victim’s knowledge.

Schroeder, Marthasville, MO, pled guilty to one felony count of transportation of a minor with intent to engage in criminal sexual activity before United States District Judge Henry Autrey.  Sentencing has been set for October 19, 2016.

This charge carries a penalty range of ten years to life in prison and/or fines up to $250,000, followed by supervised release for life. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.     

This case was investigated by the Federal Bureau of Investigation, the 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 is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Kilwa Jones, St. Louis, MO, pleaded guilty 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, at approximately 10:30 p.m., 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 High Point make, C9 model, 9mm 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, forcibly grabbed Simpson’s purse and rifled the pants pockets of Sanna as he lay paralyzed on the ground.  Jones then jumped into a car and drove away.  

Jones pleaded guilty 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.  Under the plea agreement, Jones faces a penalty of up to 35 years in prison and/or fines of up to $250,000 on each count.  Sentencing has been set for October 6, 2016.

This case was investigated by the detective bureau of the St. Louis Metropolitan Police Department.  Assistant United States Attorney John Bird is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Stacey Wilson was sentenced to 81 months in prison on charges involving wire and bank fraud. 

According to court documents, on or about November 1, 2013, and continuing to on or about December 1, 2015, Stacey Wilson and his accomplice recruited approximately 53 individuals to open checking accounts at U.S. Bank with nominal amounts of money, or provide access to their existing checking accounts.  The recruited individuals provided their debit cards and checks issued on the accounts.  In addition to checks and debit cards received from the recruited individuals, they obtained checks and debit cards from the victims of motor vehicle break-ins.  Wilson and his accomplice drafted the checks in amounts ranging from $195.00 to $2,300.00 before depositing them into different fraudulently issued accounts through electronic wire transmissions of the checks’ images or through direct deposits.  As soon as the funds were deposited, Wilson and others obtained funds from the financial institutions through automated teller machine transactions, counter withdrawals or debit card purchases.  Unbeknownst to the financial institutions which accepted the fraudulently obtained checks for deposit, the accounts upon which the checks had been drawn were artificially inflated or had been closed as being fraudulent.  As a result of the scheme, Wilson and others obtained, and attempted to obtain, more than $79,000.00 through more than 270 fraudulent transactions. 

Wilson, of St. Louis City, pled guilty March 16, 2016, to felony counts of aggravated identity theft, wire fraud and access device fraud. He appeared today for sentencing before United States District Judge Ronnie L. White. In addition to the sentence of 81 months imprisonment, Wilson was ordered to pay restitution in the amount of $44,325.66.

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

St. Louis, MO – Donald Novak, former licensed insurance agent and broker for various insurance companies, was sentenced to 29 months in prison on charges involving wire fraud.  The sentence also included orders of restitution and criminal forfeiture.

According to court documents, between July 28, 2011 and July 30, 2015, Novak devised a scheme to defraud a distant relative, who suffered from certain mental limitations, of inherited assets. The fraud involved the investment, by Novak, of the victim’s funds in annuities which Novak, in turn, surrendered, misappropriated and converted for his own personal use.

"Donald Novak liquidated his client’s retirement assets only to benefit himself and not his client," said Special Agent in Charge William Woods of the FBI St. Louis Division. "This type of fiduciary abuse is on the FBI’s radar, especially going forward with new federal regulations that require financial advisors and brokers to act in the best interest of their clients."

Novak, Ellisville, Missouri, pled guilty in March 2016 to one felony count of wire fraud.  He appeared today for sentencing before United States District Judge Ronnie L. White. 

The case was investigated by the Postal Inspection Service and Federal Bureau of Investigation.  Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Haben Sebhatu, Bellevue, Washington, pled guilty to possessing more than 100 counterfeit credit cards and credit card making equipment during a multi-state trip during which he conducted numerous fraudulent transactions. 

Sebhatu was arrested by the Ladue Police Department on March 25, 2016, and a search of his vehicle revealed the fraudulent credit cards and a card encoder used to place stolen card numbers and other information on a card’s magnetic strip. Sebhatu admitted to organizing the trip. 

Sebhatu appeared before Judge Audrey G. Fleissig, who accepted his guilty plea this morning in U.S. District Court in St. Louis.  Sentencing has been set for September 20, 2016.

Sebhatu faces up to fifteen years in prison, per count, for possession of more than fifteen counterfeit cards and possession of device making equipment.  In addition to a term of imprisonment, Sebhatu faces up to a $250,000 fine per count and mandatory restitution to the victims. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

In addition to his federal case in St. Louis, Sebhatu faces criminal charges in his home state of Washington for identity theft and forgery.

The case was investigated by the Ladue (Missouri) Police Department, the U.S. Secret Service and the Pierce County (Washington) Prosecuting Attorney’s Office.  Restitution to the victims is also mandatory. 

Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Charles Hicks, Fenton, Missouri, was indicted Wednesday afternoon on mail fraud charges in connection with a fraud and embezzlement scheme that spanned three years and involved two employers. 

According to the indictment, Hicks submitted false invoices to his ex-employers, RockTenn and MarChem, both with offices in St. Louis County, for equipment not delivered and services not rendered.  The invoices were payable to two shell companies created and controlled by Hicks.

If convicted, Hicks faces up to 20 years imprisonment 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.

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.

Cape Girardeau, MO - The United States Attorney's Office announced today the unsealing of an indictment charging James Clay Waller II with Interstate Domestic Violence in violation of Title 18, United States Code, Section 2261(a)(1).  The offense of Interstate Domestic Violence was enacted by Congress in 1994 as part of the Violence Against Women Act.  A violation of the Act includes a possible prison sentence up to life imprisonment.

The indictment alleges that in June of 2011, Waller traveled back and forth between Illinois and Missouri with the intent to kill his wife, Jacque Sue Waller, and did in fact murder her.  The indictment also seeks forfeiture of any proceeds that might be derived from a manuscript intended to be published as a book that details the facts of the murder.

In 2012 Waller was charged under state law with the murder of his wife, despite the fact that her body had never been recovered.  That prosecution was resolved with Waller pleading guilty in exchange for a twenty-year sentence and leading authorities to the unmarked grave in Illinois where he had hidden and buried his wife’s body. During the guilty plea, Waller was specifically advised by the Court that any resolution of the state charges was not necessarily binding on federal authorities.

United States Attorney Richard Callahan commended the Cape Girardeau County Prosecuting Attorney’s Office for its handling of the state prosecution.  He noted that although it is highly unusual for his office to follow a state prosecution with a federal prosecution of basically the same criminal conduct, "the facts and circumstances of this case begged for such a prosecution."

This murder has been investigated by a host of law enforcement agencies, including the Federal Bureau of Investigation, the Cape Girardeau County Major Case Squad, the Jackson City Police Department, the Cape Girardeau City Police Department, the Missouri State Highway Patrol and the Cape Girardeau County Sheriff’s Department. 

The federal prosecution of the case will be handled by Assistant United States Attorney Larry H. Ferrell.

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 – Ricker Brooks pled guilty to charges involving his preparation of false tax returns by overstating business expenses of a client for the tax years 2009 and 2010.  Brooks owns Brooks Accounting Service, providing accounting and tax preparation services.  Zondra Jones owns Alliance In-Home Care Services, which provides home health care services to individuals.

According to court documents, after Jones reviewed the tax returns that Brooks prepared for her, she thought that the contract labor expense for her business was overstated.  Although there was discussion between the two of them regarding the overstatement, Jones and Brooks agreed to file the tax returns with the overstatement.  After the IRS began to investigate the returns, Brooks prepared false 1099 forms and check schedules which falsely represented payments made by Alliance In-Home Care Services to contract employees.  Jones provided these false documents to the IRS.

"Today, Mr. Brooks admitted that he blatantly ignored the tax laws by preparing false tax returns," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.  "Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients."

Brooks, St. Louis County, Missouri, pled guilty to one felony count of conspiracy to defraud the United States and two felony counts of aiding and assisting in the preparation of a false income tax return. He appeared today before United States District Judge Ronnie L. White. Sentencing has been set for August 23, 2016.

Zondra Jones, Florissant, Missouri, pled guilty last November to related charges and is awaiting sentencing on May 26, 2016.

Conspiracy carries a maximum penalty of five years in prison and or fines up to $250,000; aiding in the preparation of a false income tax return carries a maximum penalty of three years 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 IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.

St. Louis, MO – Cherri Barton was sentenced to 57 months in prison on charges involving a scheme to defraud several elderly victims and credit card issuers of more than $112,588 between August 2012 and May 2015.  Barton called elderly individuals and told them their accounts were past due in order to obtain their identifying information and bank account information.  She then used the information to purchase items, including gift cards.

According to court documents, in August 2012, Barton began telephoning elderly people with a ruse that their utilities were in danger of being disconnected due to lack of payment. In order to continue service, they were required to provide a credit card number. In further discussions, Barton also obtained identifying information, such as social security numbers and dates of birth.  Using this information, Barton contacted the victims’ creditors and added herself as an authorized user to the credit accounts.  In order to perpetrate the scheme, Barton also transferred the telephone services of some of the victims to her cell phone so when creditors attempted to contact the legitimate account holders, they reached the defendant.

Barton, St. Louis County, pled guilty in January to one felony count of aggravated identity theft and three felony counts of access device fraud.  She appeared today for sentencing before United States District Judge Carol E. Jackson. 

The case was investigated by the Postal Inspection Service, St. Louis County Police Department and the cities of Maryland Heights, Florissant, Overland, St. Louis, Clayton, Webster Groves and University City. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.

Cape Girardeau, MO – The co-owner of B & H Convenience store pled guilty Monday to charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program.  Patrick Buck admitted with his plea that he illegally redeemed up to $550,000 in SNAP benefits between January 2010 and March 2014.

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

Patrick Buck, Cape Girardeau, MO, pled guilty to four felony counts of unauthorized use of SNAP benefits.  He appeared Monday in Cape Girardeau before United States District Judge Ronnie L. White.  Sentencing has been set for August 15, 2016.

Each count carries a maximum penalty 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.  

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

Cape Girardeau, MO – Bobby David Lowrey pled guilty to multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.

According to court documents, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms, Lowrey and Lowrey, Inc. of Parma, Missouri, John Radin Farms and Kathy Ellsworth Farms.

Bobby David Lowrey placed farms in other people’s names in order to obtain Direct and Counter-cyclical Payment Program proceeds that he was not eligible to receive under the federal government’s crop insurance program.  The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey and not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-cyclical Payment Program. 

From 2007 to 2012, Bobby David Lowrey obtained $240,367 in Direct and Counter-cyclical Payments in the name of John Radin Farms.  Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012. 

The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security and reported that his employees were on a temporary layoff when in reality they were still working and being paid.  The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of unemployment Insurance benefits being paid to employees that they were not eligible to receive.

Bobby David Lowrey, Parma, MO, pled guilty to two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau. Sentencing has been set for August 16, 2016.

These charges carry penalties ranging from 5 to 30 years in prison and or fines up to $1 million.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – The final of four individuals that participated in a scheme to file false claims for federal tax refunds for tax years 2008 through 2011 was sentenced today to two years in prison.  Ninety-three false federal income tax returns were filed by the defendants as part of a scheme, which claimed approximately $335,297 in fraudulent refunds and which caused a loss to the United States government of $184,464.

"The object of these fraudulent refund schemes is to defraud the government and the taxpaying public," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.  "The prosecution of these individuals is a vital element in maintaining public confidence in our tax system."

Romel Tomlin, with addresses in Grand Prairie, TX and Phoenix, AZ, was sentenced today; Tyra Tomlin, Phoenix, AZ, was sentenced in January to 24 months in prison; Keith Hebb, St. Louis, and Jermaine Irons, St. Louis, were each sentenced in January to five years of probation.  They appeared before United States District Judge Rodney W. Sippel.

This case was investigated by Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney's Office.

St. Louis, MO – Olufunsho Adeshina, a native of Nigeria residing in St. Louis, was sentenced to 40 months imprisonment for his participation in a stolen identity tax fraud scheme. 

According to court documents, Adeshina received $753,063 from more than fifty refunds by filing false tax returns in the name of various individuals.  The refunds were sent to various financial accounts: some were in Adeshina’s name, some were in the names of businesses he controlled and some were in the names of identity theft victims whose information Adeshina used to establish additional accounts.  Adeshina admitted he sought more than $3.5 million dollars in refunds, but most of the false returns were caught and not honored by the IRS.

Adeshina was sentenced for one felony count of theft of government funds before United States District Judge Rodney W. Sippel.  Adeshina has been in federal custody since April when he was arrested at Atlanta-Hartsfield Airport returning to the United States from Nigeria.  In addition to the sentence of imprisonment, Adeshina was ordered to pay $753,063 in restitution to the IRS.

This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Anastasia Grzeskowiak was sentenced to 51 months imprisonment for embezzling $2.9 million from the account of a disabled individual whose financial affairs she was entrusted with managing.

According to court documents, beginning in 2000, an individual with whom Grzeskowiak was previously acquainted developed a blinding eye disease that significantly impaired his vision and ability to read, and thus to manage his own financial affairs. In June 2003, that individual asked Grzeskowiak to assist him in paying his personal bills, which she did until April 2013.

Between June 2006 and continuing through April 2013, Grzeskowiak forged her victim’s signature on more than 800 checks which she made out to herself, endorsed and used to pay her personal expenses, the expenses of others and to gamble. In total, she obtained more than $2,916,091 from the victim without his authorization, as well as causing him to incur substantial legal and accounting expenses in order to uncover the fraud.

Additionally, Grzeskowiak filed false tax returns for 2010 through 2012, understating her gross income from the illegal activity described above, resulting in a tax loss of $506,496.

Grzeskowiak, St. Charles, MO, pled guilty in January to one felony count of wire fraud and three felony counts of filing false tax returns. She appeared today for sentencing before United States District Judge Carol E. Jackson. In addition to her prison sentence, Grzeskowiak was ordered by Judge Jackson to make restitution to the victims of her crimes in the total amount of $3,558,993.

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Richard Finneran handled the case for the U.S. Attorney's Office.

St. Louis, MO – Darren Randal Wilson was indicted on multiple fraud charges involving his misappropriation of over $80,000 from the Ethical Society of Police, an association of black St. Louis police officers.

According to the indictment, Wilson was president of the Ethical Society of Police (ESOP) in 2013 and 2014.  As president of ESOP, Wilson had signature authority over the ESOP bank account and accessed the funds in the account with checks and an ATM/debit card.  The funds in the ESOP account consisted primarily of the monthly dues contributed by the police officer members of ESOP.

The indictment alleges that 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.  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 was indicted by a federal grand jury on April 14 on nine felony counts of wire fraud.  The indictment remained sealed until earlier today when the defendant surrendered to authorities.

Upon conviction, each count of the indictment 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.

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.

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 – Charles Johnson and Shayne Kier Jones were charged in a criminal complaint for the April 4 armed robbery of a Dunbar Armored truck.

According to the affidavit filed with the criminal complaint, on April 4, 2016, Charles Johnson and Shayne Kier Jones robbed Dunbar Armored Company shortly after a money pickup from the Parking Division of the City of St. Louis.  The money was taken from a Dunbar Armored employee at gun point.  Jones was employed by Dunbar, and that day his duty was to exit the armored truck to do the pickup and delivery of U.S. currency.  A second employee (CT) was assigned as the driver.  At the end of the day’s route CT was told by Jones that he, Jones, would drive the armored truck back to Dunbar.  Jones then decided to stop for gas.  After getting the gas, Jones acted like he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck.  As threats of violence were being made, Jones began to throw the money bags out the back door to Johnson and another man (JB).  CT said that there was a white Buick vehicle right next to the armored car.  CT and Jones then drove the truck from the scene of the armed robbery.

Both CT and Jones were interviewed as victims by law enforcement that night.  On April 7, Jones was interviewed by employees of Dunbar again, denying any involvement in the robbery.  He then changed his story and told them that he committed the robbery as he was threatened by unknown people.

On April 14, the owner of the white vehicle, JB, which was used in the robbery, was interviewed and finally admitted his involvement in the robbery.  He told law enforcement that Johnson contacted him with the concept of the robbery.  Johnson told JB that he had a cousin who worked for the armored truck company and was willing to help in the robbery.  JB’s role was to be the driver of the getaway car, the white car.  Johnson provided the Dunbar shirts used in the robbery, skull caps and sunglasses.  On April 4, JB and Johnson drove to the site they had picked out for the robbery.  Jones drove the armored truck to that location, got out of the truck, which allowed JB and Johnson to approach and demand money.  JB did not know that Jones was the inside employee until he saw him outside the truck.  JB realized that he had seen Jones as a customer at JB’s work.  Johnson also worked at the same place.  After the robbery, JB and Johnson drove the white car loaded with the stolen money to JB’s residence where the money was transferred to another car.  They then drove to JB’s mother’s house and divided the stolen money into three shares.  As Jones was still being interviewed by law enforcement, Johnson took two shares of the stolen money and left.

Johnson and Jones, both of St. Louis City, were each charged in a criminal complaint with one count of conspiracy to interfere with commerce by threats of violence, a violation of Title 18:1951 and 2.

If convicted, conspiracy to interfere with commerce by threats of violence carries a maximum penalty of 20 years in prison and/or fines up to $250,000.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.      

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

St. Louis, MO – Shaun Hayes and Michael Litz were indicted on bank fraud charges relating to Excel Bank, which was closed by regulators in 2012.

The indictment was returned Wednesday by a federal grand jury in St. Louis. Hayes, from Frontenac, was arrested late Thursday. Litz, from Ladue, is expected to turn himself in early next week.

Hayes had ownership in and other associations with a number of banks in the St. Louis area.  Litz was an owner of major real estate businesses in the area, Eighteen Investments and Bellington Realty. According to the indictment, Eighteen Investments was facing serious financial difficulties in 2009.  At that time Hayes was the majority shareholder of the holding company through which Excel Bank operated.  Through his efforts, Excel Bank opened up a loan production office in Clayton which Hayes controlled.  (Excel Bank had its main office in Sedalia, Missouri, and principally served the western Missouri area.) Hayes and Litz were also co-owners of McKnight Man I LLC, through which they were attempting to develop property at the intersection of Manchester and McKnight Roads in St. Louis County.

Both Eighteen Investments and the McKnight Man entity were delinquent on loans at Centrue Bank, which, in June 2009, sued Eighteen Investments and Litz.  Centrue Bank also threatened to sue Hayes and Litz as guarantors on a delinquent McKnight Man loan. These loans totaled over $4 million. The indictment charges a scheme in which Hayes used his status as an insider at Excel Bank to cause Excel Bank to buy the pool of delinquent Eighteen Investments loans at a discount, but hid that purchase from the bank’s board of directors.  According to the indictment, Hayes and Litz then caused Excel Bank to issue a loan of approximately $3.3 million to a straw party only identified as LS.  According to the indictment, some $2.4 million of the loan proceeds were used to pay Centrue Bank for the pool of Eighteen Investments loans purchased by Excel Bank, and $906,000 of the loan proceeds were used to pay off the McKnight Man loan at Centrue Bank, thereby relieving Hayes and Litz of that liability. According to the indictment, the purpose of the loan to LS was to benefit Eighteen Investments, Hayes and Litz, but the loan was set up in the name of a straw party to conceal that from bank officials, as well as federal and state bank regulators.    

The indictment charges that federal bank regulators later adversely classified the loans to LS and other straw parties as substandard.  The indictment refers to these as "friends of Shaun" loans, which were pushed through the bank due to Hayes’ influence and without adequate underwriting safeguards for the bank.  These loans were, in effect, additional loans to Eighteen Investments which was already delinquent on loan payments and real estate taxes on many properties securing the loans.  According to the indictment, these loans far exceeded the lending limit allowable by regulators for loans by Excel Bank to Eighteen Investments and the use of straw parties was designed to conceal that fact.   

According to the indictment the use of $906,000 of the LS loan proceeds to pay the McKnight Man loan at Centrue Bank constituted a misapplication of Excel Bank funds and unlawful self-dealing by Hayes, an insider who exercised substantial control over the loan transactions at Excel Bank’s loan production office in Clayton.  The Excel Bank records relating to the payment on behalf of McKnight Man made no reference to McKnight Man or any liability of McKnight Man to Excel Bank.  As a result, there was no loan to McKnight Man shown on the Excel Bank books and, accordingly, Hayes and Litz made no payments to Excel Bank for McKnight Man.

"The abuse of public funds by trusted banking officials is a serious crime which the FBI will diligently investigate with our law enforcement partners to bring justice for American taxpayers," said Steve D’Antuono, Acting Special Agent in Charge of the FBI St. Louis Division.

“Insider deals regarding pools of mortgage loans place risk on the housing/mortgage industry and the economy.  This indictment is proof that matters involving insider deals and fraud concerning mortgage loans are being dealt with seriously,” stated Barry McLaughlin, Special Agent in Charge, Office of Inspector General, Federal Housing Finance Agency Mid-Western Region.

“Excel Bank lost millions of dollars from Hayes’ alleged crimes, did not repay the taxpayers’ $4 million TARP investment in the bank and did not make 11 dividend payments to Treasury, which lost nearly $5 million when the bank failed," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP).  "SIGTARP stands united with our law enforcement partners to bring justice to bank officials and their associates who commit bank fraud."

Hayes and Litz were indicted on one count of bank fraud and one count of misapplication of Excel Bank funds.  Hayes was also indicted on the charge of causing false entries to be made in the Excel Bank records relating to the LS loan.  Each count carries a maximum penalty of up to 30 years in prison and fines up to $1 million.  In determining an actual sentence a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case is being investigated by Special Agents from the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program.  Assistant United States Attorneys James E. Crowe, Jr., Reginald L. Harris and Gilbert C. Sison are 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 – Quentin Cook, Florissant, MO, was sentenced to 48 months in prison.  In February, after a three-day trial before United States District Judge Ronnie L. White, he was convicted of diverting mail believed to contain clothing, marijuana and other items to addresses that he and his co-defendants controlled.  Cook and his co-defendants were former Postal employees of the Network Distribution Center in Hazelwood. 

According to court documents and testimony presented at trial, Edward Lewis, Sean West, Korey Howard and Quentin Cook are former employees of the United States Postal Service. West, Howard and Cook searched for and identified mail and over-labeled it to redirect it from its original sender’s intended recipient to themselves, Lewis and others. The diverted mail included clothing, marijuana, electronics, computer equipment, pottery and personal effects. 

Korey Howard, Florissant, MO; Edward Lewis, Hazelwood, MO; and Sean West, Florissant, MO, pled guilty to multiple charges, including conspiracy, obstruction of correspondence and theft or receipt of stolen mail in December 2015.  Howard and West were each sentenced to 24 months in prison.  Edward Lewis will be sentenced later this month.

This case was investigated by the U.S. Postal Service-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorneys Anthony Franks and Dianna Collins handled the case for the U.S. Attorney’s Office.

St. Louis, MO – James Michael Arnold was sentenced to 30 months in prison on charges involving his false use of the name and Missouri Bar number of a licensed Missouri attorney to practice law.

According to court documents, James Michael Arnold graduated from the University of Missouri School of Law, Kansas City, in July 1992, but never passed the Missouri Bar Examination and has never been licensed to practice law in Missouri or elsewhere.           

Between January 2010 and January 2014, James Michael Arnold fraudulently represented to individuals, law firms, legal staffing agencies and other businesses that he was a licensed attorney in order to gain employment as an attorney.  As part of his scheme to defraud, Arnold used the name and Missouri Bar number of a licensed Missouri attorney to apply for jobs as an attorney and to file court documents.  Arnold’s unsuspecting victims paid him for his fraudulent representation.

Additionally, for tax years 2011, 2012 and 2013, Arnold failed to file tax returns reporting the earnings from the illegal activity described.  Arnold’s failure to file the required returns resulted in a tax loss of approximately $74,000.

James Michael Arnold’s scheme to defraud resulted in a loss to the victims of approximately $530,000.

Arnold, Sikeston, Missouri, pled guilty in January to one felony count of mail fraud, one felony count of aggravated identity theft and one count of failure to file tax returns. He appeared today for sentencing in St. Louis before United States District Judge E. Richard Webber. 

This case was investigated by the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney's Office.

St. Louis, MO – Loren Copp was charged in a criminal complaint alleging that he produced child pornography. He will appear for his initial appearance in federal court on Friday, April 8, 2016.

According to the affidavit filed with the criminal complaint, Copp owned and operated a business at 4601 Morganford Road, St. Louis, known as "Dojo Pizza."  After multiple complaints that minor females were living there, law enforcement obtained state and federal search warrants, which were executed between November and December 2015.  Multiple types of digital media were seized and analyzed and found to contain child pornography. 

If convicted, production of child pornography carries a maximum penalty of 30 years in prison and/or fines up to $250,000.  In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.      

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

St. Louis, MO – Stuart B. Millner was charged yesterday in connection with an alleged scheme to defraud clients and financial institutions in connection with the operation of his auction business, Stuart B. Millner & Associates (SBMA), and related entities.

According to the indictment, SBMA was engaged in the business of appraising, marketing, liquidating and auctioning assets from industrial and commercial facilities. SBMA entered into contracts with several clients to conduct auctions to sell their property and collect the proceeds from the sales, for which SBMA would receive a commission. But according to the indictment, Millner caused SBMA to misdirect sales proceeds that should have been held by SBMA for the benefit of its clients and to direct those proceeds to pay company expenses and debts owed by the company to previous clients. The indictment charges that this "Ponzi-like" activity violated several federal laws, including statutes criminalizing mail fraud and wire fraud.

The indictment also alleges that Millner caused SBMA to falsely report to customers that auctioned items had sold for less than they had in fact sold for, a misrepresentation that was designed to conceal Millner’s fraudulent activities. Millner is also accused of having made an application for loans on behalf of two other companies in which he submitted false financial statements. As a result of these activities, Millner is alleged to have caused at least $2.5 million in losses to clients and obtained in excess of $6 million in fraudulent loans from financial institutions.

Millner, Union, MO, was indicted by a federal grand jury late Wednesday on three felony counts of bank fraud, one felony count of mail fraud affecting a financial institution, four felony counts of wire fraud and two felony counts of mail fraud. 

If convicted, each count of bank fraud and mail fraud affecting a financial institution carries a maximum penalty of 30 years in prison and/or fines up to $1 million; each of the other counts carry a maximum 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 Federal Bureau of Investigation. Assistant United States Attorney Richard E. 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 – Three individuals living in the Seattle area have been charged in federal court for possessing more than fifteen counterfeit credit cards.  Heben Sebhatu, Fana Kiros and Kayla Burleson were arrested on a criminal complaint and made their initial appearance in federal court in St. Louis today.

According to the complaint, the defendants were arrested in the early morning hours of March 25, 2016, after a traffic stop by the Ladue police department revealed more than 100 suspicious credit and gift cards, computer equipment and a credit card encoding machine.  While in custody, one of the defendants admitted the group had traveled from Seattle to the Midwest and made fraudulent transactions with the credit cards to obtain gift cards and money orders in different states.  Defendant Sebhatu was found to be on bond out of Pierce County, Washington, for First Degree Identity Theft.

If convicted of possession of counterfeit access devices in violation to Title 18, United States Code, Section 1029(a)(3), the defendants face up to 10 years imprisonment, 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. Restitution to the victim financial institutions and business is also mandatory.

The case is being investigated by the Ladue Police Department and the U.S. Secret Service - St. Louis Office. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.

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

Robert W. Fabick, of St. Louis, Missouri, pled guilty last week in federal court to misdemeanor charges for creating and using a fraudulent stamp in order to circumvent the lottery draw process at the Duck Creek Waterfowl Draw on the Mingo National Wildlife Refuge in Stoddard County.  Fabick appeared before United States Magistrate Judge Abbie Crites-Leoni at the Rush H. Limbaugh, Sr. U.S. Courthouse in Cape Girardeau, Missouri, for his plea on March 31, 2016.    

Conservation officials previously implemented a lottery draw process for waterfowl hunting at Duck Creek in order to accommodate heavy demand during peak times of the waterfowl hunting season.  The process requires prospective hunters to arrive early in the morning to register for the lottery.  If a hunter’s name is picked during the draw, conservation officials use an official stamp to mark their hunting pass and they are granted the privilege of hunting waterfowl on the grounds for the day. 

On the morning of December 16, 2014, conservation officials investigated a complaint that Fabick had fired a shot several minutes before legal shooting hours were scheduled to begin.  When confronted by officials, Fabick turned over a stamped hunting pass.  During the course of the investigation, officials discovered that Fabick had not registered for the lottery draw that morning.  Fabick later admitted that he used a fraudulent stamp to mark his hunting pass.  Fabick told officials that he arranged to have the fraudulent stamp manufactured so that he could bypass the lottery draw process for waterfowl hunting.  Fabick explained that he became frustrated in the past when his name was not picked during the draw and he wanted to guarantee that he could hunt on the property.      

As part of a plea agreement with federal prosecutors, Fabick is subject to a complete revocation of all hunting privileges on both public and private lands for a period of three (3) years.  Fabick was also ordered to pay a fine of $5,000 for using the fraudulent stamp and a fine of $100 for attempting to take migratory birds before lawful shooting hours.           

This case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation. 

St. Louis, MO - Richard Gross, Winfield, Missouri, pled guilty to multiple counts involving the trafficking of synthetic drugs.  He entered his plea before United States District Judge John A. Ross.

According to court documents, Richard Gross and co-defendant Paul Berra manufactured synthetic cannabinoids known on the street as "K 2" and "Incense" and synthetic cathinones known on the street as "Bath Salts."   These products were sold to stores in a number of states.  However, their largest customer was Gross' mother, co-defendant Pam Tabatt, who was the largest retailer of synthetic drugs in Missouri.  She sold the synthetic drugs through South 94 Bait and Tackle in St. Charles County and Smoke Sensations, Nights of Rave in St. Louis County. 

Gross pled guilty to one felony count each of conspiracy to distribute and possess with the intent to distribute controlled substance analogues intended for human consumption, conspiracy to fraudulently receive and distribute misbranded products in interstate commerce, conspiracy to import controlled substance analogues into the United States and conspiracy to receive, sell and facilitate transportation of smuggled goods.  Sentencing has been set for July 12, 2016.

Pamela Tabatt, St. Peters, Missouri, pled guilty to related charges in March.  She is scheduled for sentencing June 21, 2016. Paul Berra, Jr., Warrenton, Missouri, entered his plea in January and is schedule for sentencing May 2, 2016.

These charges carry a penalty range of 5 to 20 years in prison for each count and/or fines ranging from $250,000 to $1,000,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  Additionally, as part of his conviction, he will be required to forfeit assets and property totaling more than $500,000. 

This case was investigated by US Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation, Drug Enforcement Administration, the Postal Inspection Service and the Federal Bureau of Investigation.  Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, Missouri Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern Illinois, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorney's offices in St. Louis County, Missouri; St. Charles County, Missouri; Madison County, Illinois; and St. Clair County, Missouri.  Assistant United States Attorneys James Delworth and Erin Granger are handling the cases for the U.S. Attorney's Office.

St. Louis, MO – Jordan Gilmore, Wade, North Carolina, was sentenced to 70 months in prison. Gilmore previously pled guilty to recruiting two Kentucky people and driving them to Missouri, Colorado, Indiana, Illinois and other states to steal mail and pass altered checks.  He appeared today in St. Louis for sentencing before United States District Judge Ronnie L. White.

According to court documents, on May 11, 2015, Creve Coeur police received a call from Enterprise Bank about a man, later identified as Joseph Coan, who was attempting to pass a stolen check.  After receiving a description of the vehicle in which Coan was traveling, the officers effectuated a traffic stop of the vehicle, and located Coan, Megan Adams and Jordan Gilmore, the driver.  During the stop, the officers saw a stack of money on the floorboard near Gilmore. When the three individuals were placed under arrest, officers located checks, stolen mail and more than $12,000 cash in the car.  During a search of Coan, the officers found an additional $4,000 hidden in his shoe.

Through an interview with Adams, officers learned that the defendants had stayed at a hotel in St. Charles, Missouri, the previous night.  They searched the hotel room and located equipment needed to alter stolen checks and stolen mail from which the checks had been obtained.  A review of the mail revealed that it had been stolen in the Missouri counties of Lincoln, St. Charles and St. Louis.  The account holders of the stolen checks informed the investigators that the checks had been placed in the mail as payment of debts, but the legitimate payees reported that they had not received the mailed items.

Co-defendants Joseph Coan, Alexandria, KY, and Megan Adams, Southgate, KY, have entered guilty pleas to related charges and have been sentenced.

The case was investigated by the United States Postal Inspection Service, the Creve Coeur Police Department and the St. Charles County Police Department.  Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Brandy Archie, St. Louis, Missouri, was sentenced to one year and one day in prison for selling her prescription drugs that had been submitted and paid by Medicaid. 

According to court documents, Archie visited a doctor on numerous occasions and falsely represented to the doctor that she needed prescription drugs to treat her medical conditions.  She had already decided to sell the drugs.

Archie pled guilty last December to two felony counts of healthcare fraud and two felony counts of possession with intent to distribute prescription drugs. She appeared today for sentencing before United States District Judge Ronnie L. White. 

This case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General, the Drug Enforcement Administration and the Missouri Medicaid Fraud Control Unit.  Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Nader Jaser Abdullah, Houston, TX, pled guilty to the armed robberies of five banks spanning five states, including the Lindell Bank here on July 14, 2015.  Abdullah entered his plea today before United States District Judge E. Richard Webber. He is scheduled for sentencing June 23, 2016.

According to court documents, in addition to the July 14th robbery, Abdullah robbed a bank in Hendersonville, North Carolina, three days later on July 17, 2015.  Previous to those robberies, he admitted to the robberies of three other banks in Phoenix, Arizona; Las Vegas, Nevada; and Glenview, Illinois, also in July, before being arrested in Wisconsin. 

He now faces 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 in multiple jurisdictions and the St. Louis Metropolitan Police Department.  Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.

St. Louis, MO – Steven Robinson was sentenced to 144 months imprisonment today.  Kyle Turner and Hali Wilson were each sentenced earlier this month to 84 months in prison.  Additionally, each defendant was ordered to pay $8,150 restitution to the family of the deceased victim.

According to court documents, Turner and Wilson purchased the heroin from Robinson, and then dealt the drug to a St. Charles teen. The victim’s mother discovered his body the following morning.  The medical examiner later determined that the victim had died of acute heroin intoxication.

Robinson, St. Louis, Missouri; Turner, O’Fallon, Missouri; and Hali Wilson, also of O’Fallon, Missouri; each pled guilty in December to one felony count of distribution of heroin. Robinson appeared today for sentencing before United States District Judge Henry Autrey.

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

St. Louis, MO - Shukree Melton, of Detroit, Michigan, was sentenced to 2 years for aggravated identity theft in connection with a fraudulent credit card and gift card scheme.  He appeared before U.S. District Judge Henry Autrey in St. Louis today.

Melton was arrested at a shopping center in St. Louis County on July 28, 2015, with his three co-conspirators who had traveled down from Michigan.  A search of the group’s vehicle and motel room revealed numerous fake store gift cards, a card encoder, a card reader and other device-making equipment, all of which has been seized and criminally forfeited.  The group had successfully passed numerous fake gift cards before their arrest. 

In addition to his prison sentence, Melton was ordered to pay restitution to the victims of his scheme pursuant to the Mandatory Victim Restitution Act.

The case was investigated by the St. Louis County Police Department and the St. Louis Office of the United States Secret Service.

St. Louis, MO – Linda Sweazy, of St. Louis County, pled guilty to a mail fraud charge involving her embezzlement from a former employer. Sweazy appeared before United States District Judge Audrey Fleissig. Sentencing has been set for June 28, 2016.

In her plea agreement, Sweazy admitted to embezzling $215,000 from her former employer, a Clayton businessperson identified as F.S.  Sweazy admitted that she embezzled from F.S. by making unauthorized, personal charges to F.S.’s credit card and using F.S.’s funds to pay the credit card bill.  Sweazy also admitted to giving herself unauthorized raises, bonuses and extra paychecks and to manipulating the payroll records of F.S.’s business to cover up her malfeasance.

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  Restitution is mandatory under the Mandatory Victims Restitution Act.  Additionally, Sweazy agreed to a forfeiture allegation that will result in a money judgment for $215,000 against her.

The case was investigated by the FBI and the Clayton, Missouri, Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – Theodore Deininger was sentenced to 15 months imprisonment and ordered to pay $150,000 in restitution.

According to court documents, Deininger and First Choice Orthotics and Prosthetics, LLC billed Medicare for four prosthetic legs, claiming that they were new, but instead provided the patients with used ones.

Deininger, Kirksville, MO, pled guilty in December to four felony counts of health care fraud. He appeared today for sentencing before United States District Judge Catherine D. Perry.

The case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Adam Bernaix of St. Louis, Missouri, was arrested today on an indictment charging him with mail fraud and money laundering in connection with a kickback scheme he is accused of operating from June 2012 until February 2015.

According to the indictment, while a project manager for Albert Arno, Inc., a local commercial HVAC contractor, Bernaix had authority to select subcontractors and authorize their bills to Albert Arno.  Bernaix decided to exploit that authority and siphon off funds from his employer through a company he organized through a straw party. 

The company, Trident Management Services, billed subcontractors of Albert Arno for “management services.”  In order to account for Trident’s bills, Bernaix increased the subcontractors’ invoices to Albert Arno enough to provide extra money to pay Trident’s bills.  In truth, Trident provided minimal services to its clients and its bills were only paid by the subcontractors to satisfy Bernaix and keep business flowing to the subcontractors from Albert Arno.

During the nearly three-year period of the fraud scheme, Trident Management Services made more than $350,000 from Albert Arno subcontractors, which proceeds Bernaix is alleged to have divided between himself and the nominal founder and sole officer of Trident Management Services.

If convicted, Bernaix faces up to 20 years imprisonment on each of two mail fraud counts and up to 10 years imprisonment on each of two money laundering counts.  Additionally, Bernaix faces up to $250,000 in fines per count and restitution for the victims will be sought pursuant to the Mandatory Victims Restitution Act.

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 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 Anderson and Oscar Mims were convicted of charges involving a conspiracy to distribute large quantities of heroin in the St. Louis area. The five-day trial was held before United States District Judge Rodney W. Sippel. 

According to court documents and testimony presented at trial, Timothy Anderson was the leader of a drug conspiracy that transported large amounts of heroin from Illinois to the St. Louis area for distribution.  Oscar Mims was convicted as part of the conspiracy.  Eight other co-defendants have previously pled guilty and have been sentenced.

Anderson was convicted of one felony count of conspiracy to possess with the intent to distribute in excess of one kilogram of heroin and Mims was convicted of one felony count of conspiracy to possess with the intent to distribute in excess of 100 grams of heroin.  Anderson was also convicted of one felony count of possession with intent to distribute heroin.  Sentencing for both defendants has been set for June 17, 2016.

Conspiracy to possess with the intent to distribute in excess of one kilogram of heroin carries a penalty range of 10 years to life in prison. Conspiracy to possess with the intent to distribute in excess of 100 grams of heroin carries a penalty range of 5 years to 40 years in prison. Possession with intent to distribute heroin carries a maximum of 20 years in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Drug Enforcement Administration and the St Louis Metropolitan Police Department.

St. Louis, MO – An indictment was unsealed earlier today charging former Gasconade County law enforcement officer Marty L. Rainey with multiple civil rights violations involving his sexual abuse of several women during his tenure in various law enforcement departments in Gasconade County, Missouri.

According to the indictment, Marty Rainey was triple-commissioned and employed by the Gasconade County Sheriff’s Office, the Hermann Police Department and the Rosebud Police Department as a law enforcement officer.  Between June 2010 and March 2012, in his capacity as a law enforcement officer, Rainey committed acts of aggravated sexual abuse involving four women. Additionally, the indictment alleges that on August 31, 2012, Rainey enticed a minor under the age of 18 to engage in prostitution.

Rainey, Sullivan, MO, was indicted Wednesday by a federal grand jury on four felony counts of deprivation of rights under the color of law and one felony count of enticement of a minor to engage in commercial sex acts.  He is expected to appear in federal court in St. Louis later this morning for his initial appearance.

If convicted, these charges carry a maximum penalty of life in prison and/or fines up to $250,000. In determining the actual sentence, 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 Missouri State Highway Patrol, with the cooperation of the Gasconade County Sheriff’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 – The final defendant involved in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri, was sentenced earlier today. Eugene Davis, St. Louis City, was sentenced to 87 months in prison by United States District Judge Catherine D. Perry.  Co-defendants Keenan Thomas and Brandon Foster were sentenced to 188 months and 144 months, respectively last fall.

According to statements made in court, Brandon Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. October 16th and stole 33 firearms -- 27 handguns and 6 rifles. On October 17, 2014, ATF attempted to arrest Foster and Thomas using three vehicles.  Rather than backing out, Thomas drove forward on the grass, turning right in an attempt to elude the agents.  He struck one of the ATF vehicles and then proceeded to back up almost striking an agent.  After one shot was fired by an agent, Thomas stopped his car.  Upon their arrest, agents recovered a Springfield Armory 9mm pistol equipped with an extended 33-round magazine on the floorboard directly under Foster. Foster admits the theft and possession of the 33 firearms from All Star and the purchasing of the ammunition and magazine from Cabela’s.

This was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Jessie Hampton and Malcom Johnson, both of St. Louis City, were charged with multiple drug and weapons charges related to the July 15, 2012, murder of Scipio Vaughn, of Centralia, Illinois.

According to the indictment, during 2012, Hampton and Johnson were engaged in drug trafficking.  In the early morning hours of July 15, 2012, Hampton and Johnson robbed Scipio Vaughn, and during the course of the robbery, Vaughn was shot and murdered.

Each defendant was indicted on one felony count of conspiracy to distribute cocaine; two felony counts of possession of a firearm in furtherance of a drug trafficking crime, resulting in murder; and conspiracy to obstruct commerce by robbery.  Jessie Hampton also was indicted on one felony count of being a previously convicted felon in possession of a firearm.        

If convicted, the defendants face possible sentences of life imprisonment.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives 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.

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 –Fourteen people have been charged in a federal indictment alleging a large-scale conspiracy to traffic in contraband cigarettes.  Twelve of the fourteen defendants were arrested earlier today, and the two remaining defendants are expected to surrender in the near future. The indictment had been returned on February 18, 2016, but remained sealed until the arrests today.  The defendants are primarily from New York and the Atlanta area.

The indictment alleges that the defendants purchased large quantities of cigarettes in Missouri and Georgia, where the state tax on cigarettes is substantially lower than in New York, transported them to New York, sold the cigarettes without paying the New York tax, and concealed the transactions, resulting in a substantial profit. 

According to the indictment, the State of Missouri and the State of New York require that a tax stamp be affixed to each package of cigarettes as proof of tax payments.  New York currently imposes a combined state-local tax of $5.85 per package, compared with Missouri which imposes combined state-local tax of 22 to 24 cents per package in St. Louis County and St. Louis City.  It is estimated that the tax loss for New York State is in excess of twenty million dollars.

If convicted, conspiracy to traffic in contraband cigarettes and money laundering carries a maximum penalty of five years in prison, and/or a fine up to $250,000; each count of trafficking in contraband cigarettes carries a maximum of five years in prison and/or fines up to $250,000; each count of money laundering carries a maximum of 20 years in prison 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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS Criminal Investigation, with the assistance of multiple federal, state and local law enforcement agencies in Missouri, New York, Georgia, Indiana and Illinois.

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.