Eastern District of Missouri

St. Louis, MO – BRANDON FOSTER pled guilty to charges involving his participation in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri.

According to statements made in court, Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. on 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.

Foster, St. Louis City, pled guilty to two felony counts of being a felon in possession of a firearm before United States District Judge Catherine D. Perry. Sentencing has been set for July 23, 2015.

Co-defendant Keenan Thomas pled guilty to related charges and awaits sentencing on June 30, 2015.  Eugene Davis is facing trial and is presumed innocent until and unless proven guilty.

Each charge carries a maximum penalty of 10 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 was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.

St. Louis, MO –MARK AVALOS, St. Peters, Missouri, was sentenced to five years of probation and ordered to pay $497,000 in restitution after pleading guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store (TMS) in 2008.  In imposing sentence today, United States District Judge Henry E. Autrey noted Avalos’ cooperation in the criminal investigation into the collapse of TMS in 2008.

TMS was a major mortgage brokering business which, by 2008, had offices in four states and hundreds of employees. Jason Rauschelbach and John York were the owners of TMS.  Each of them pled guilty to a criminal conspiracy charge.  Rauschelbach is presently serving a 24-month sentence and York is awaiting the designation of a prison facility where he will serve the 21-month sentence he received earlier this month.  Court records relating to each of those cases showed that Rauschelbach and York took significant distributions from TMS, even as the business was failing and falling delinquent in paying over in excess of $600,000 in federal employment taxes.  TMS also funded the purchase of assets, such as a ranch in Breckenridge, Colorado; an airplane; a condominium at the Lake of the Ozarks and several boats, all of which were owned by entities controlled by Rauschelbach and York.

Avalos was the controller of TMS.  He pled guilty to a bank fraud charge relating to his involvement in a check kite in which the First Bank of the Lake lost approximately $850,000.  The record showed that Avalos made only his salary at TMS and did not share in the distributions and asset purchases which benefitted Rauschelbach and York.

This case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigation, HUD-Office of Inspector General, the Department of Labor-Office of Inspector General, the DOL Employee Benefits Security Administration and the Postal Inspection Service.  Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney’s Office.

St. Louis, MO – LAWRENCE B. IKEN, DPM, was sentenced to 12 months and one day in prison and ordered to pay restitution of $999,170 on charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken from 2006 through July 2014.  His company, Iken LLC, was sentenced to two years of probation on the same charges.  As part of his plea in January, Dr. Iken agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the false health care claims.

Additionally, as part of a civil settlement, Dr. Iken and Iken LLC paid the United States $748,279 to resolve allegations, brought under the federal False Claims Act, that Dr. Iken and Iken LLC submitted false claims for payment to Medicare and Missouri Medicaid.  The United States alleged that Dr. Iken and Iken LLC submitted false claims for payment for podiatric services that were not provided.

According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, MO. Dr. Iken is a sole practitioner who provided podiatry services to patients at his Manchester and at his Creve Coeur offices and at various nursing homes in the St. Louis area. In addition to his office practice, Dr. Iken is an independent contractor for Preferred Podiatry Group, Inc. (PPG).  According to its website, PPG provides podiatric care to residents in nursing homes and other long-term care facilities in Missouri and five other states.  As a PPG contractor, Dr. Iken provided services to nursing home residents on Wednesdays and Thursdays.  With his plea, Dr. Iken admitted that on thousands of occasions, he billed Medicare, Medicaid and private insurance companies for the incision and drainage of abscesses and hematomas, when he actually only clipped the toenails of the patients.

Iken, of Chesterfield, Missouri, and his company each pled guilty in January to one felony count of healthcare fraud.  He appeared today for sentencing before United States District Judge Ronnie L. White.

This case was investigated by the U.S. Department of Health & Human Services-Office of Inspector General, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorneys Dorothy McMurtry and Suzanne Moore handled the case for the U.S. Attorney’s Office.

St. Louis, MO – An indictment was unsealed late yesterday charging the following ten Chicago people involving a conspiracy to buy State of Missouri tax stamped cigarettes and transporting them to Illinois for resale.

According to the indictment, between October 2012 and April 2015, the defendants purchased large amounts of State of Missouri tax stamped cigarettes in the St. Louis, Missouri area, from either a confidential informant or retail business, which they then transported to the Chicago area for resale.  The indictment alleges that they then sold the contraband cigarettes themselves or to local distributors.  The defendant’s made a profit at the expense of millions of dollars of lost tax revenue for the State of Illinois.

Individuals indicted:

• Mohamad Awadallah
• Khalid Alazzah
• Ibrahim Moghli
• Baraa Awwad
• Wisam Zeidan
• Ahmad Zayed
• Raad Hamdeh
• Suhaib Awwad
• Muath Salah
• Yazan Alsala Ymeh

Each defendant was indicted by a federal grand jury April 8th on one felony count of conspiracy to traffic in contraband cigarettes.  The indictment was suppressed until the arrest of some of the defendants Tuesday.  They are expected to appear in court Monday, April 20, 2015.

If convicted, this charge carries a maximum penalty of five 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.

This case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney John Ware 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 – STACI A. MARTIN was indicted for allegedly filing false tax returns for tax years 2008 and 2009.

Martin, Florissant, Missouri, was indicted by a federal grand jury on two felony counts of filing false tax returns. The indictment was returned April 1st, but remained sealed until the arrest of the defendant.  She appeared for arraignment in federal court earlier today.

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

This case was investigated by IRS Criminal Investigation.  Assistant United States Attorney Steven Muchnick 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 – PATRICIA A. HOEHN, Farmington, Missouri, pled guilty today to three felony counts involving false statements to the Missouri Medicaid program.

Specifically, in her plea agreement, Hoehn, a licensed pharmacist, admitted that she used three prescriptions that falsely stated and represented to Medicaid that a licensed medical doctor had prescribed a cough syrup that contained hydrocodone, a narcotic opioid pain medication, to three children.  In reality, the prescriptions were false because no licensed medical doctor had actually prescribed the drugs to these three children on these three dates, and Hoehn knew that the children were not actually receiving these drugs.  Further, in the plea agreement, Hoehn admitted that she destroyed her cellular telephone by striking it and placing it in a toilet to prevent law enforcement officers from recovering the telephone and searching it for text messages regarding these false prescriptions.

Hoehn entered her plea before United States District Judge Carol E. Jackson in St. Louis.  Sentencing has been set for July 13, 2015.

These charges carry penalties of up to five years in prison and/or fines up to $250,000. The Court can also order restitution to be paid to the Missouri Medicaid program.  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 Missouri State Highway Patrol, the Mineral Area Drug Task Force, the Drug Enforcement Administration and the Office of Inspector General for the United States Department of Health & Human Services, with assistance from the Medicaid Fraud Control Unit of Missouri Attorney General Chris Koster and St. Francois County, Missouri, Prosecutor Jerrod Mahurin.

St. Louis, MO – The mayor of Pine Lawn, Missouri, SYLVESTER CALDWELL, has pled guilty to charges involving the extortion of cash payments from the owner of a local towing company and from the owner of a Pine Lawn convenience store.

According to court documents, from December 2013 through April 2014, special agents with the Federal Bureau of Investigation ("FBI") were conducting an ongoing public corruption investigation into the activities of defendant Sylvester Caldwell ("the defendant"), who was Mayor of the City of Pine Lawn, Missouri. As Mayor, the defendant exercised authority and control over which towing company provided the primary towing service for the City of Pine Lawn. During the public corruption investigation, the owner of a towing company, who was cooperating with the FBI, met with the defendant on several occasions for the purpose of making cash payments to the defendant at the defendant’s request, in order to remain as the primary towing service for Pine Lawn.

On at least five occasions, the defendant met with the tow company owner at various locations within the Eastern District of Missouri and accepted cash payments, which the defendant had requested in exchange for continuing to give work to the towing company. These payments included the following: December 20, 2013 - $300; December 30, 2013 - $200; January 16, 2014 - $300; February 21, 2014 - $500; and March 27, 2014 - $300. At times, the defendant used coded language when requesting the cash payments. For example, the defendant commanded the tow company owner to place "green Mountain Dew in a cup," which was code for directing that the cash be placed in a disposable cup and handed to the defendant. The defendant also induced payments by threatening to use a competing towing company.

From at least February 2013 through September 2014, Mayor Caldwell also extorted numerous payments of money from the owner of a convenience store known as Pine Lawn Market. Defendant attempted to disguise the payments as donations to the City of Pine Lawn. The owner paid the money to defendant out of fear that defendant would make trouble for the store. The owner of the store also allowed defendant to take goods from the store out of fear that his business could suffer economic harm if he refused.

Caldwell, Florissant, Missouri, pleaded guilty to one count of Attempted Extortion and one count of Extortion before United States District Judge Catherine D. Perry. Sentencing has been set for July 7, 2015.

Each of these charges carries a maximum penalty of 20 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.

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

St. Louis, MO – PAUL PARKER pled guilty to charges involving a scheme to defraud four clients by using their investment funds to pay his expenses and gamble. He also admitted that he willfully failed to file tax returns during the scheme, in part to avoid reporting his income from the fraud.

According to court documents, Parker held an account in the name of American Investors, Inc. for the purported purpose of receiving funds from clients to purchase life insurance annuities. Rather than purchase annuities on his clients’ behalf, however, Parker spent their money on personal expenses and gambling. In the course of the scheme, Parker also used monies contributed by later clients to fund repayments to prior clients. In total, Parker took in approximately $259,168 through false and fraudulent pretenses, resulting in a loss to investors of approximately $209,168. Parker also admitted to failing to file federal income tax returns for three years from 2010 to 2012.

Parker, St. Louis, Missouri, pled guilty to one felony count of mail fraud and three counts of failure to file a tax return before United States District Judge Rodney W. Sippel. Sentencing has been set for July 16, 2015.

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each count of failure to file tax returns carries a maximum penalty of one year in prison and/or fines up to $25,000.

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

St. Louis, MO – The owner and operator of Discount Tax Service was sentenced to one year and one day in prison on charges of filing false tax returns.  According to court documents, CHRISTOPHER MICKLES prepared over seven hundred and fifty federal income tax returns on behalf of his clients for tax years 2008 through 2011.  Many of those returns contained falsely claimed fraudulent items and credits, such as household help income and earned income tax credits. In addition to the prison sentence, Mickles was ordered to pay restitution of $131,219.

"Criminal Investigation wants to make sure taxpayers do not pay good money for bad advice," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.  "Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate."

Christopher Mickles, St. Louis, Missouri, pled guilty last October to four felony counts of aiding and abetting in the preparation of false tax returns.  He appeared today for sentencing before United States District Judge E. Richard Webber.

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

The United States Attorney's Office announced that MARIO EVANS, of Charleston, Missouri, was sentenced today to 221 months on one felony count of Being a Previously Convicted Felon in Possession of a Firearm.  He appeared before United States District Judge Stephen N. Limbaugh, Jr.

Evans was convicted following a jury trial in United States District Court on December 4, 2014.  Testimony at trial established that on August 2, 2013, at approximately 11:45 p.m., an officer with the Charleston Department of Public Safety observed Evans’ vehicle parked in an abandoned car wash.  Further investigation revealed Evans was also at the car wash, and on the driver’s seat of Evans’ car officers observed a loaded .22 caliber Lorcin brand semi-automatic pistol with the serial number removed, $1,238 in U.S. currency and 45 grams of marijuana.

A set of scales used for weighing drugs was found in Evans’ pants pocket.  Evans was a previously convicted felon, having been convicted in 2001 and 2004 of distributing controlled substances.  As the result of Evans’ convictions, he was prohibited from possessing firearms.

The case was investigated by the Charleston Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms & Explosives.  Assistant United States Attorneys Larry H. Ferrell and Jack N. Koester handled the prosecution for the Government.

St. Louis, MO – JOHN YORK was sentenced to 21 months in federal prison on charges of conspiracy to defraud the United States through his business, The Mortgage Store, Inc., in 2008.

According to court documents, York was a part owner of The Mortgage Store, Inc. (TMS) and the president of Title America.  By 2008, TMS was a major mortgage brokering business with offices in four states and hundreds of employees.  The main offices were in Westport Plaza and Wentzville.  The businesses were operating at a financial deficit in 2008. TMS incurred over $600,000 in federal employment (including withholding) tax liabilities in the first three quarters of 2008 that were not paid over to the United States.  There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS, including the delinquent employment tax liabilities. York received substantial distributions from TMS in 2008 despite the federal employment tax delinquencies. In addition, he and others at TMS directed that TMS funds be paid on loans for properties at Tan Tar A Resorts in the Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado.  He was a partial owner of those properties.

In order to maintain its status as a loan correspondent for loans guaranteed by the Federal Housing Administration, TMS was required to maintain certain net worth balances that would be audited by a HUD authorized private firm and submitted to HUD by TMS.  In June 2008, York and others at TMS falsified information concerning the net worth of TMS to the auditor for submission to HUD.

Additionally, in June and July 2008, TMS incurred liabilities for a 401k retirement plan in effect for its employees, as well as liabilities for the health and dental insurance plans offered to its employees.  The amounts withheld from the employees’ pay checks were not paid over as required by law.

York, formerly of Wentzville, MO, and now of Osage Beach, MO, pled guilty last November to one felony count of conspiracy.  He appeared today for sentencing before United States District Judge Carol E. Jackson. The court also ordered York to pay $497,000 in restitution.

This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, HUD Office of the Inspector General, the Department of Labor and the Department of Labor-Employee Benefits Security Administration. Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney's Office.

St. Louis, MO – Former St. Louis City Police Officer DON McGHEE pled guilty to charges of providing a firearm to known drug dealers to facilitate their distribution of crack cocaine and marijuana in the City of St. Louis.

According to court documents, McGhee was a St. Louis Metropolitan Police Officer, assigned as a Patrolman in the Sixth District. Officer McGhee knew and associated with individuals who stored and distributed quantities of crack cocaine and marijuana in and from a house located on Cottage Avenue, in the City of St. Louis. On March 2, 2014, Officer McGhee took a Mossberg 12-gauge pistol grip shotgun to the Cottage Avenue drug house and gave it to one of the drug dealers knowing, believing or having reason to believe that the drug dealer would use the shotgun in relation to and in furtherance of the drug trafficking. During the execution of a search warrant at the Cottage Avenue house several days later, law enforcement officers recovered the Mossberg pistol grip shotgun, fully loaded, along with several other firearms, ammunition, quantities of crack cocaine and marijuana and a large amount of cash.

McGhee, St. Louis City, pled guilty to one felony count of conspiracy to possess a firearm in relation to a drug trafficking crime before United States District Judge Audrey G. Fleissig.  Sentencing has been set for July 14, 2015.

This charge carries a maximum penalty of 20 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.

United States Attorney Richard Callahan noted that this investigation originated with the St. Louis City Police Department, which then partnered with additional law enforcement agencies as its investigation expanded.  In addition to the St. Louis City Police Department, the case is also being investigated by the Federal Bureau of Investigation, the United States Drug Enforcement Administration and the St. Louis Circuit Attorney’s Office.  Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.   

St. Louis, MO – MELVIN J. SCHERRER was sentenced to 360 months prison on federal drug and weapons charges involving the distribution and manufacture of large amounts of methamphetamine from October 2010 to September 2013.  He appeared today for sentencing before United States District Judge Catherine D. Perry.

The following co-defendants have pled guilty to related charges and have been sentenced:

Jorge Lopez, Corinth, TX, 120 months prison; Alan D. Adler, Bonne Terre, MO, 57 months prison; Howard R. Pyatt, a/k/a Bud, Bonne Terre, MO, 30 months prison; Arvil B. Matthews, Imperial, MO, 96 months prison; Amber D. Scism, Farmington, MO, 30 months prison; Terri L. Fox, St. Louis, 70 months prison; Guillermo Navarro, a/k/a Willie, St. Louis, MO, 96 months prison; Jerami A. Westenberger, Arnold, MO, 12 months and one day in prison; Brent T. Bouren, St. Louis, MO, 24 months prison; Mark E. Abney, Bonne Terre, MO, 18 months prison; and
Jerry L. Addison, St. Louis, MO, 24 months prison.

This case is a joint operation of the Federal Bureau of Investigation, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, St. Charles and Jefferson County Sheriff's Offices, the St. Louis Metropolitan Police Department and multiple local law enforcement agencies.  Assistant United States Attorney Jeannette Graviss prosecuted the case for the Attorney's Office.

St. Louis, MO – OLAJUWON DAVIS and BRANDON ORLANDO BALDWIN were indicted on charges involving the conspiracy to maliciously damage and destroy, by means of explosives, a building, vehicle and other property and the illegal purchase of firearms at a local Cabela’s store. They were originally indicted in November on one felony count of making false written statements in connection with a firearms purchase. The additional charges in the superseding indictment were returned yesterday, April 1, 2015.

According to the indictment, between September 2014 and November 21, 2014, Davis and Baldwin conspired to obtain what they believed were explosives or bombs. The indictment states that on November 8, 2014, Baldwin stated that he wanted multiple bombs to use against people, buildings, vehicles and property. On November 12, 2014, both Davis and Baldwin viewed a recording of the detonation of an explosive or bomb. On November 18, 2014 Davis paid a deposit and agreed to purchase what he believed were three explosives or bombs. Days later, Davis and Baldwin traveled to a location where Davis took possession of items he believed were explosives or bombs. Both men were then arrested and have been in custody since that time.

Additionally, the indictment charges Davis and Baldwin with conspiring between September 2014, and November 21, 2014, to obtain firearms for other persons by making false and fictitious statements to a licensed firearms dealer, Cabela’s store in Hazelwood, Missouri. Baldwin claimed to be buying firearms for himself when they were really for other persons.

"The arrests last November of these two defendants, who are members of the St. Louis Chapter of the New Black Panther Party, prevented their alleged plot to carry out violent acts during the protests in Ferguson," said Special Agent in Charge William P. Woods of the FBI St. Louis Division.

Olajuwon Davis and Brandon Orlando Baldwin, both of St. Louis, were indicted by a federal grand jury on one felony count each of conspiracy to damage or destroy a building, vehicle and other property by use of an explosive, conspiracy to make false written statements in connection with the purchase of firearms and the transfer of firearms to a felon and two felony counts of making false written statements in connection with a firearms purchase.  If convicted, these charges carry penalties ranging from 5 to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.    

This case was investigated by the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Bureau of Alcohol, Tobacco, Firearms & Explosives; St Louis County Police Department and the St Louis Metropolitan Police Department.

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

St. Louis, MO – SHEILA AUBUCHON pled guilty today to charges relating to her willful failure to file reports of more than $100,000 in cash transactions during her employment with Belgrade State Bank, in violation of federal bank reporting requirements.

Aubuchon, of Potosi, Missouri, pled guilty to two felony counts of purposefully causing Belgrade Bank to fail to file currency transaction reports, or CTRs, with the Internal Revenue Service. Under federal law, financial institutions such as Belgrade State Bank are required to file a CTR whenever they process a transaction involving more than $10,000 in U.S. currency. Aubuchon admitted that, on five separate occasions in 2009 and 2010, while serving as the Branch Manager of the Potosi Branch of Belgrade State Bank, she caused the bank to fail to file such reports and did so intentionally for the purpose of evading the reporting requirements. Aubuchon pled guilty to the charges before United States District Judge Rodney W. Sippel, in St. Louis.  Sentencing has been set for June 26, 2015.

Each count to which Aubuchon pled guilty carries a maximum penalty of five years in prison. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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

St. Louis, MO – DANIEL T. WRIGHT was indicted involving his failure to properly dispose of asbestos from a former school building in Owensville, Missouri.

According to the indictment, in August 2013, Wright was contracted to remove and properly dispose of asbestos from a former school building in Owensville, Missouri, for $104,000.  Wright solicited and received a verbal bid for asbestos abatement and disposal from GEHM Environmental for $86,000.  However, Wright ultimately decided to employ workers who were not licensed or trained to work with asbestos to complete the abatement.  The crew was mostly comprised of local people, including high school students.

After being advised by the City of Owensville that he needed to obtain a demolition permit, Wright obtained a demolition package, which included a notice that demolitions needed to comply with all state and federal guidelines and required notifications.  A demolition permit was granted by the City of Owensville.  The day after receiving the permit, the project was shut down by the Owensville Police Department after having received complaints from local citizens. The indictment alleges that Wright continued unpermitted demolition activities and asbestos removal at the building even after being informed by the City that the building contained asbestos and that demolition activities were banned.  Wright failed to ensure that the asbestos insulation was deposited at an approved waste disposal site. Instead, Wright had the untrained workers dispose of the material in large boxes that remained on the property and in rented dumpsters that sat behind the school.   

Wright, Harrisburg, Missouri, was indicted by a federal grand jury on three felony counts of violation of the Clean Air Act relating to the removal and disposal of asbestos.

If convicted, each of these charges 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 Environmental Protection Agency, Missouri Department of Natural Resources and the Owensville Police Department. United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office. 

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

St. Louis, MO – JASMINKA RAMIC of Rockford, Illinois, was arrested in Germany and extradited to the United States to face charges. She appeared in federal court earlier today in St. Louis for an initial appearance. She is set for an arraignment/detention hearing Monday, March 23, 2015. 
The United States Attorney’s Office for the Eastern District of Missouri announced the indictment February 6 upon the arrests of the other five defendants on terrorist related crimes. Charged in the indictment are: Ramic, Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, and Armin Harcevic, all of St. Louis County, Missouri; Nihad Rosic of Utica, New York; and Mediha Medy Salkicevic of Schiller Park, Illinois. All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists. Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country.

If convicted, the crimes of conspiring to provide material support carry penalties ranging up to 15 years imprisonment for each count and/or fines up to $250,000. The crime of conspiring to kill and maim persons in a foreign country carries a penalty of up to life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), U. S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments, with assistance from multiple law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Mara Kohn, a Trial Attorney in the Counterterrorism Section of the Department of Justice.

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 –RONALD L. ROBERTS was sentenced to 68 months imprisonment on charges of mail and wire fraud in connection with his obtaining more than a million dollars from lenders in a loan fraud scheme.

According to court documents, Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, which Roberts claimed he owned and planned to sell to Wal-Mart. In some instances, Roberts claimed that the funds were needed to buy out the interests of family members, including his half-brother, who had purportedly asserted claims against the property; in others, he claimed that it was necessary to extinguish liens or perform environmental remediation; in yet others, he claimed that one or more parties associated with the transaction were demanding additional sums to close the transaction.

Roberts usually promised lenders either that their money would be returned in a matter of days or weeks at most, usually with considerable interest, or that they would receive a portion of the profits that Roberts expected to generate from the fictitious transaction. The rate of return promised by Roberts varied from 0% to at least as much as 180%, with terms varying between a couple of weeks and a few hours.

In truth, Roberts owned a piece of property, constituting less than ten (10) acres in size, in Neelyville, Missouri, more than ten (10) miles outside of Poplar Bluff, Missouri. At the time of Roberts’ representations, the property had a market value of less than $30,000 and was encumbered by a judgment against Roberts in excess of $13 million, making the property worthless to Roberts. During the scheme, Wal-Mart had not made any offer to purchase that property, nor did it have any present plans to develop additional land in or near Poplar Bluff where there is already an existing Wal-Mart store. Instead, Roberts employed funds given to him by lenders for his own personal use.

Roberts, of Town and Country, MO, pled guilty last July to two felony counts of wire fraud and one felony count of mail fraud. He appeared today in St. Louis for sentencing before United States District Judge E. Richard Webber.

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

St. Louis, MO – An indictment was unsealed earlier today charging former St. Louis City Police Officer DON McGHEE with providing a firearm to known drug dealers to facilitate their distribution of crack cocaine and marijuana in the City of St. Louis.

According to the indictment, McGhee was a St. Louis Metropolitan Police Officer, assigned as a Patrolman in the Sixth District. The indictment alleges that Officer McGhee knew and associated with individuals who stored and distributed quantities of crack cocaine and marijuana in and from a house located in the City of St. Louis. On March 2, 2014, Officer McGhee took a Mossberg 12 gauge pistol grip shotgun to the Cottage Avenue drug house and gave it to one of the drug dealers knowing, believing or having reason to believe that the drug dealer would use the shotgun in relation to and in furtherance of the drug trafficking. During the execution of a search warrant at the Cottage Avenue house several days later, law enforcement officers recovered the Mossberg pistol grip shotgun, fully loaded, along with several other firearms, ammunition, quantities of crack cocaine and marijuana and a large amount of cash.

McGhee, St. Louis City, was indicted yesterday by a federal grand jury on one felony count of conspiracy to possess a firearm in relation to a drug trafficking crime. Officer McGhee surrendered to authorities this morning. He appeared for arraignment at 2:30 today before United States Magistrate Judge Nanette Baker.

If convicted, this charge carries a maximum penalty of 20 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.

United States Attorney Richard Callahan noted that this investigation originated with the St. Louis City Police Department, which then partnered with additional law enforcement agencies as its investigation expanded.  In addition to the St. Louis City Police Department, the case is also being investigated by the Federal Bureau of Investigation, the United States Drug Enforcement Administration and the St. Louis Circuit Attorney’s Office.  Assistant United States Attorney Hal Goldsmith 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 – MELVIN L. WILSON pled guilty to a charge involving transporting a minor under the age of 18 to travel to Illinois to engage in prostitution.

According to court documents, during an investigation into a report of a missing minor female, it was determined that in early 2013 Melvin Wilson began posting ads for the minor victim on www.backpage.com, which advertised her availability to perform sex acts in exchange for money.  The investigation also revealed that Wilson verbally, physically and sexually abused her while she stayed with him and worked as a prostitute. He also provided her with marijuana alcohol and ecstasy pills. 

Wilson, of St. Louis, Missouri, entered a guilty plea to one felony count of interstate transportation of an individual with the intent to engage in prostitution.  He appeared before United States District Court Judge Henry Autrey.  Sentencing has been set for June 8, 2015.

This charge carries a penalty range of up to 10 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, the St. Louis Metropolitan Police Department and the Madison County Illinois Sheriff’s Department.        

St. Louis, MO - SANDRA KAY BRYANT, Saint Louis County, pled guilty this afternoon and admitted setting fire to her family’s home at in Florissant, Missouri, on November 16, 2001.  Bryant’s 15-year old son, Zachariah Andrew Kemper, became trapped in the basement and was killed during the fire.  Bryant pled guilty to one-count of aiding and abetting the use of fire to commit mail fraud.  She appeared before United States District Court Judge Audrey G. Fleissig to enter her guilty plea.  A jury trial had been set for March 9.

The 2001 fire was originally the subject of state charges in which Sandra Bryant was charged with murder by arson.  During the ensuing trial, the judge declared a mistrial after ruling that certain evidence relating to a polygraph examination indicating deception by Bryant had mistakenly been shown to the jury.  The Missouri Supreme Court ultimately held that because the mistrial was declared over the defense objection, state prosecutors were barred from retrying the defendant in state court because of the United States Constitution’s "double jeopardy" provision.  During the state trial, Bryant challenged her confession to detectives that detailed her involvement in the fire.  With today’s guilty plea, Bryant unequivocally acknowledged and confirmed her participation in the arson scheme.

The federal indictment charged both Bryant and her ex-husband, Steven Kemper, for their involvement in the 2001 arson.  On July 3, 2013, Steven Kemper, pled guilty to the same charge.  Kemper’s sentencing has been set for April 8, 2015, at 1:30 p.m.  Bryant’s sentencing has been set for June 11, 2015, at 2:00 p.m.  Each defendant faces up to 10 years imprisonment.

This case was originally investigated by the Saint Louis County Police Department.  The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives took up the investigation after the Missouri Supreme Court decision barring the retrial by state prosecutors.  The St. Louis County Prosecutor’s Office also provided significant assistance. 

WASHINGTON — The Justice Department announced the findings of its two civil rights investigations related to Ferguson, Missouri, today.  The Justice Department found that the Ferguson Police Department (FPD) engaged in a pattern or practice of conduct that violates the First, Fourth, and 14th Amendments of the Constitution.  The Justice Department also announced that the evidence examined in its independent, federal investigation into the fatal shooting of Michael Brown does not support federal civil rights charges against Ferguson Police Officer Darren Wilson.

"As detailed in our report, this investigation found a community that was deeply polarized, and where deep distrust and hostility often characterized interactions between police and area residents," said Attorney General Eric Holder.  "Our investigation showed that Ferguson police officers routinely violate the Fourth Amendment in stopping people without reasonable suspicion, arresting them without probable cause and using unreasonable force against them.  Now that our investigation has reached its conclusion, it is time for Ferguson’s leaders to take immediate, wholesale and structural corrective action.  The report we have issued and the steps we have taken are only the beginning of a necessarily resource-intensive and inclusive process to promote reconciliation, to reduce and eliminate bias, and to bridge gaps and build understanding."

"While the findings in Ferguson are very serious and the list of needed changes is long, the record of the Civil Rights Division’s work with police departments across the country shows that if the Ferguson Police Department truly commits to community policing, it can restore the trust it has lost," said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.  "We look forward to working with City Officials and the many communities that make up Ferguson to develop and institute reforms that will focus the Ferguson Police Department on public safety and constitutional policing instead of revenue.  Real community policing is possible and ensures that all people are equal before the law, and that law enforcement is seen as a part of, rather than distant from, the communities they serve."

Attorney General Holder first announced the comprehensive pattern or practice investigation into the Ferguson Police Department after visiting that community in August 2014, and hearing directly from residents about police practices and the lack of trust between FPD and those they are sworn to protect.  The investigation focused on the FPD’s use of force, including deadly force; stops, searches and arrests; discriminatory policing; and treatment of detainees inside Ferguson’s city jail by Ferguson police officers.

In the course of its pattern or practice investigation, the Civil Rights Division reviewed more than 35,000 pages of police records; interviewed and met with city, police and court officials, including the FPD’s chief and numerous other officers; conducted hundreds of in-person and telephone interviews, as well as participated in meetings with community members and groups; observed Ferguson Municipal Court sessions, and; analyzed FPD’s data on stops, searches and arrests.  It found that the combination of Ferguson’s focus on generating revenue over public safety, along with racial bias, has a profound effect on the FPD’s police and court practices, resulting in conduct that routinely violates the Constitution and federal law.  The department also found that these patterns created a lack of trust between the FPD and significant portions of Ferguson’s residents, especially African Americans.

The department found that the FPD has a pattern or practice of:

• Conducting stops without reasonable suspicion and arrests without probable cause in violation of the Fourth Amendment;
• Interfering with the right to free expression in violation of the First Amendment; and
• Using unreasonable force in violation of the Fourth Amendment.

The department found that Ferguson Municipal Court has a pattern or practice of:

• Focusing on revenue over public safety, leading to court practices that violate the 14th Amendment’s due process and equal protection requirements.
• Court practices exacerbating the harm of Ferguson’s unconstitutional police practices and imposing particular hardship upon Ferguson’s most vulnerable residents, especially upon those living in or near poverty.  Minor offenses can generate crippling debts, result in jail time because of an inability to pay and result in the loss of a driver’s license, employment, or housing.

The department found a pattern or practice of racial bias in both the FPD and municipal court:

• The harms of Ferguson’s police and court practices are borne disproportionately by African Americans and that this disproportionate impact is avoidable.
• Ferguson’s harmful court and police practices are due, at least in part, to intentional discrimination, as demonstrated by direct evidence of racial bias and stereotyping about African Americans by certain Ferguson police and municipal court officials.

The findings are laid out in a 100-page report that discusses the evidence and what remedies should be implemented to end the pattern or practice. The findings include two sets of recommendations, 26 in total, that the Justice Department believes are necessary to correct the unconstitutional FPD and Ferguson Municipal Court practices.  The recommendations include: changing policing and court practices so that they are based on public safety instead of revenue; improving training and oversight; changing practices to reduce bias, and; ending an overreliance on arrest warrants as a means of collecting fines.

The Justice Department will require that the recommendations and other measures be part of a court-enforceable remedial process that includes involvement from community stakeholders, as well as independent oversight.  The Justice Department has provided its investigative report to the FPD and in the coming weeks, the Civil Rights Division will seek to work with the City of Ferguson and the Ferguson community to develop and reach an agreement for reform, using the recommendations in the report as the starting point.    

The federal criminal investigation into the fatal shooting of Michael Brown sought to determine whether the evidence from the events that led to Brown’s death was sufficient to prove, beyond a reasonable doubt, that Wilson’s actions violated federal civil rights laws that make it a federal crime for someone acting with law enforcement authority to willfully violate a person’s civil rights.  As part of the investigation, federal authorities reviewed physical, ballistic, forensic, and crime scene evidence; medical reports and autopsy reports, including an independent autopsy performed by the U.S. Department of Defense Armed Forces Medical Examiner Service; Wilson’s personnel records; audio and video recordings; internet postings, and; the transcripts from the proceedings before the St. Louis County grand jury.  Federal investigators interviewed purported eyewitnesses and other individuals claiming to have relevant information.  Federal prosecutors and agents re-interviewed dozens of witnesses to evaluate their accounts and obtain more detailed information.  FBI agents independently canvassed more than 300 residences to locate and interview additional witnesses.

The standard of proof is the same for all criminal cases: that the defendant committed the crime beyond a reasonable doubt.  However, unlike state laws, federal criminal civil rights statutes do not have the equivalent of manslaughter or a statute that makes negligence a crime.  Federal statutes require the government to prove that Officer Wilson used unreasonable force when he shot Michael Brown and that he did so willfully, that is, he shot Brown knowing it was wrong and against the law to do so.  After a careful and deliberative review of all of the evidence, the department has determined that the evidence does not establish that Darren Wilson violated the applicable federal criminal civil rights statute.  The family of Michael Brown was notified earlier today of the department’s findings.

Due to the high interest in this case, the department took the rare step of publicly releasing the closing memo in the case.  The report details, in over 80 pages, the evidence, including evidence from witnesses, the autopsies and physical evidence from the analysis of the DNA, blood, shooting scene and ballistics.  The report also explains the law as developed by the federal courts and applies that law to the evidence.

DOJ Report on Shooting of Michael Brown

Ferguson Police Department Report

Pattern and Practice Charts

Pattern and Practice Typography

St. Louis, MO – JASON CRIPE, Windsor, Illinois, was charged in a criminal complaint alleging wire fraud in connection with a bogus advertisement on Craigslist.  According to the complaint, Cripe advertised two Bobcat tractors for sale on the website and accepted $12,800 in partial payment.  When the delivery date came and went, Cripe is alleged to have offered numerous excuses for his non-delivery.  Ultimately, after promising to repay the victims’ money, Cripe is alleged to have cut off communications with the victims and cannot be located. If any member of the public is aware of Cripe’s whereabouts, they are asked to contact the St. Louis office of the Secret Service at 314-529-2238.

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

This case was investigated by the St. Louis Office of the U.S. Secret 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 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 – ALEXSANDR RABIKOV, a native of Belarus and permanent resident of the United States, living in the Ft. Lauderdale, Florida area, and his girlfriend, YULIA BELOMYTTSEVA, a Russian citizen also residing in the Ft. Lauderdale, Florida area, were indicted by a federal grand jury February 11, charging the couple with conspiracy to steal government funds and commit aggravated identity theft.  They made their initial appearance in federal court in St. Louis today. 

Both have been charged with participating in a conspiracy that targeted a local bank for personal identifiers and spanned across the country and overseas.

According to the indictment and other court papers, Rabikov and Belomyttseva accepted tax refunds paid out by the United States upon receipt of false and fraudulent tax returns filed in the names of American taxpayers.  One source of identifiers was the computer system of the Southern Commercial Bank, a financial institution headquartered in St. Louis.  Rabikov and Belomyttseva are alleged to have directed proceeds of the conspiracy to financial accounts they controlled in the names of other individuals.  It is alleged that members of the conspiracy pay account holders to turn over control of accounts so that the proceeds of the conspiracy are not all directed to financial accounts held in the Defendants’ names.  Rabikov is alleged to have recruited Belomyttseva, his girlfriend, into the conspiracy.

If convicted, both defendants face 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.

The case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

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

St. Louis, MO – TERRELL LANGSTON of Miami, Florida, and MONTRAIL AUSTIN of Pembroke Pines, Florida, were sentenced for their roles in a stolen identity tax refund scam.  Langston was sentenced to six years imprisonment and Austin was sentenced to two years imprisonment.  Both men were jointly ordered to repay the $492,868 loss to the U.S. government caused by their offense.

On December 1, 2014, Langston pleaded guilty to one count of conspiracy to steal government funds and one count of aggravated identity theft.  Austin pleaded guilty to one count of aggravated identity theft on the same date. 

According to the plea agreements and other court papers, Langston ran an identity theft ring from his residence in Tallahassee, Florida between February 2012 and May 2013.  Langston used stolen names and identifiers to file false and fraudulent federal tax returns in the names of others.  The tax returns all called for refunds.  Langston enlisted Austin and others to coordinate the collection of these refunds at addresses in Florida, Missouri and elsewhere.  It was Langston’s desire for refunds to be distributed to many addresses to avoid the suspicion that would arise should hundreds of tax refunds arrive at his residence.  In exchange of Austin’s help in coordinating others to receive and liquidate refunds, Austin and others received a share of the proceeds of the crime.  Austin and his cohorts are known in a scheme like this as a "cash out gang."

In all, Langston and his co-conspirators filed more than 450 returns for the 2011 and 2012 tax years, calling for more than $2.2 million dollars in refunds.  The IRS paid out $492,868 of the claimed refunds. 

"Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.  "I’d like to commend the St. Louis Metropolitan Police Department for their diligence and assistance with this investigation."

The case was broken open when a member of one of the cash out gangs was stopped for a traffic violation by the St. Louis Police Department.  The officer observed a number of debit cards in the names of others in the vehicle and seized them when the driver denied ownership of the cards.  From there, the St. Louis police cooperated with IRS Criminal Investigation to determine that phony tax returns had funded the cards.

The case was investigated by the St. Louis office of the IRS-Criminal Investigation Division.  Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.    

Cape Girardeau, MO - DAVID HILTON RUSH and JOHN LYN RUSH were sentenced Tuesday for illegally dealing in firearms.  David Rush was sentenced to 36 months in prison and John Rush was sentenced to 36 months.  Both men appeared before United States District Judge Stephen N. Limbaugh, Jr.

At the jury trial last November, trial testimony established that between 2010 and 2014 both brothers actively engaged in the business of selling firearms. Agents conducted a series of buys from each defendant using informants and undercover agents.  Records show that during this time, John Rush alone sold more than 1200 firearms.  A search warrant at John Rush’s residence resulted in the recovery of 71 firearms which the Court ordered forfeited to the United States.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives.  Assistant United States Attorney Keith D. Sorrell and John N. Koester, Jr. handled the prosecution for the Government.

St. Louis, MO – OLUFUNSHO ADESHINA, of St. Louis, Missouri, has been charged in a criminal complaint in U.S. District Court alleging his participation in a stolen identity tax fraud scheme.  IRS Criminal Investigators discovered tax refunds purportedly due to various individuals being deposited in numerous financial accounts across the St. Louis area in the name of Adeshina or businesses he controlled.  Because of the suspicious nature of the deposits, a number of financial institutions froze the funds and brought the matter to the attention of law enforcement.

According to the criminal complaint filed on Friday, nearly $200,000 from the United States Treasury has flowed into more than 20 financial accounts controlled by Adeshina since the beginning of 2015.  Tax authorities have been able to confirm at least one of these deposits was generated by a false and fraudulent tax return prepared in the name of an individual taxpayer identified as "R.F."

Public records and research suggest Adeshina, a native of Nigeria, is a local guitarist.  When federal agents attempted to contact Adeshina, it appeared Adeshina had recently left the St. Louis area.  Anyone with information on Adeshina’s whereabouts is asked to contact the St. Louis Office of IRS Criminal Investigation at 314-612-4097.

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 – MICHAEL LEON ADKINS, SR. pled guilty to theft of government funds in connection with a scheme to obtain housing benefits through the United States Department of Housing and Urban Development (HUD) between 2009 and 2014.

According to the plea agreement, Adkins abused HUD subsidized housing programs in two ways: 1) by "renting" his own house to his wife who accepted housing benefits from HUD and 2) by fraudulently seeking and accepting HUD benefits for a separate apartment he occupied.  Adkins admitted to failing to report the government funds he received as his wife’s "landlord" while applying for benefits as a tenant.  Adkins was able to conceal the funds he received as a landlord by placing his home in the name of his son.  In all, Adkins admitted his scheme netted him more than $30,000 in funds intended for the indigent.

Adkins, St. Louis, Missouri, pled guilty to one count of theft of government funds before U.S. District Judge E. Richard Webber.  Sentencing has been set for June 5, 2015.

This charge carries a maximum penalty of 10 years in prison and/or a fine of up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the HUD Office of the Inspector General.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.  

St. Louis, MO – JOHN D. STARKE; Rolla, Missouri, was sentenced today to 86 months in prison. Co-defendant CHRYSTAL J. STONE, also of Rolla, Missouri, was sentenced to 24 months in December, for their methamphetamine distribution activities, between October 2013 to May 2014, in Phelps County. They appeared before United States District Judge Audrey G. Fleissig.

This case was investigated by the South Central Drug Task Force. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney's Office.

St. Louis, MO – HUBOLIST ELLIOTT pled guilty to mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties. 

According to court documents, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida.  The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property.  As part of the scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase.  In some instances, the real property represented as an opportunity for investment and ownership did not exist.  In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property.  A number of investors from around the country, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme.  Expected losses as a result of the scheme total more than $1,000,000.

Elliott, Cary, North Carolina, pled guilty to one felony count of mail fraud before United States District Judge Rodney W. Sippel.  Sentencing has been set for May 29, 2015.

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

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

St. Louis, MO – CHARLES WILLIAMS pled guilty to defrauding investors of their funds between on or about November 1, 2007 and January 31, 2013. The 11 individuals whose funds were invested in the C.R. Williams Investment Fund, LLC, and the C.R. Williams Tax Advantaged Investment Fund, LLC reported that they provided defendant more than $753,144.  By December 28, 2012, UMB Bank records revealed that only $11,800 remained in the C.R. Williams Investment Fund, LLC account, and $54,400 in the C.R. Williams Tax Advantaged Investment Fund, LLC account.

According to court documents, on March 6, 2008, the Securities and Exchange Commission barred Williams from association with any investment adviser, and revoked the investment adviser registration of C. R. Williams, Inc.  Nevertheless, Williams and his corporation continued to accept investments into C.R. Williams Investment Fund, LLC, and C.R. Williams Tax Advantaged Investment Fund, LLC, until 2012 from existing account holders.  Between November 2007 and January 2013, Williams devised a scheme to defraud financial investors by promising that the funds they provided to him were maintained in the C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC.  Without the authorization of the investors, Williams made multiple electronic transfers from investor accounts into his two investment funds.  In order to conceal the transfers of funds from the two investment accounts into other financial accounts, Williams prepared and mailed fraudulent portfolio valuations for C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC to investors.  Williams used the investors’ funds to pay for his office rental, personal expenses, mortgage and vehicle expenses, as well as to draft checks which he made payable to himself.

Williams, St. Louis, Missouri, pled guilty to one felony count of wire fraud and two felony counts of mail fraud before United States District Judge Henry Autrey.  Sentencing has been set for May 26, 2015.  
Each of these charges carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.      

This case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission.  Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – MICHAEL WALLIS was sentenced to 14 months in prison on charges related to a fraud scheme involving applications for home loans.  H was also ordered to pay restitution of $904,923.

According to the facts stated in court during the plea, since at least 2007, Michael Wallis worked in the mortgage lending industry in the St. Louis area.  Initially, Wallis was employed as a loan officer, but later operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses.  Around 2007, Wallis began doing real estate business deals with two associates who also worked in the St. Louis real estate market, and each had experience dealing with mortgages insured by the United States Department of Housing and Urban Development, Federal Housing Administration (FHA loans).  In addition, they had experience dealing with conventional mortgage loans from banks insured by the Federal Deposit Insurance Corporation (FDIC) and mortgage loans held by the government-sponsored entity known as the Federal National Mortgage Association (Fannie Mae).

From as early as 2007 until as late as January 2010, Wallis and his co-conspirators made material false representations on HUD-1 forms, resulting in the disbursement of excess loan funds which they shared among themselves.  As part of the conspiracy, Wallis and his co-conspirators found and recruited individuals to apply for loans to purchase homes and supplied the funds for the down payments on the home purchases, but falsely represented to HUD and to the lending banks that the borrowers were making the down payments.  They created fake "gift letters," which falsely stated that the borrowers' relatives were providing the down payment funds as gifts to the borrowers.

In addition, Wallis and his co-conspirators falsely stated on HUD-1 forms that remodeling expenses had been incurred and had to be paid from loan proceeds by creating fake and inflated invoices for expenses for remodeling work that was never done.  As a result, at closing, the title company disbursed loan funds to Wallis' company, Missouri Builders, based on the false statements on the HUD-1 forms and the false and inflated invoices.  Wallis then paid kickbacks to his associates from the illegally obtained loan funds.

Most of the loans went into default, causing substantial losses to the United States and financial institutions. 

Wallis, Festus, Missouri, previously pled guilty to one felony count each of conspiracy to commit bank fraud and make false statements and making false statements.  He appeared today for sentencing before United States District Judge John Ross.

Joseph Brogan, a co-conspirator of Wallis, pled guilty last month to one count of conspiracy and two counts of bank fraud.  He will appear for sentencing in May of this year. 

This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General, the United States Postal Inspection Service and the Federal Bureau of Investigation.  Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.  

St. Louis, MO – MICHAEL O'HARA, O'HARA LANDSCAPE/LAWN CARE and PRO CARE ENVIRONMENTAL were indicted on visa fraud charges by setting up a shell company to double up on the number of H-2B visa workers. 

The H-2B non-immigrant visa program permits employers to hire aliens to come to the United States and perform temporary, non-agricultural services or labor on a one-time, seasonal, peak-load or intermittent basis.  There is a set limit on the number of aliens who may receive H-2B visa status during each government fiscal year.  The H-2B visa classification requires the Secretary of Homeland Security to consult with appropriate agencies before admitting H-2B non-immigrants.

O’Hara Landscape/Lawn Care, Inc. performs residential and commercial landscaping and lawn care.  The main company office is located in the 1000 block of North Lindbergh, St. Louis, Missouri.  According to the indictment, Michael O’Hara created Pro Care as a shell company as a means to facilitate and enhance O’Hara Landscape’s access to H-2B visa workers. Pro Care was supposedly an independent landscape and lawn care company, with its own employees, office space (leased from Michael O’Hara), equipment, financing and client list, when in fact Pro Care had none of the above, but simply represented O’Hara Landscape assets as its own.  O’Hara falsified statements on behalf of Pro Care in the supporting documentation for temporary labor certifications asserting that Pro Care had a bona fide need for H-2B visa workers, and that the client list of O’Hara Landscape was actually the client list of Pro Care.  The H-2B visa workers approved for employment at Pro Care actually worked for O’Hara Landscape, thus allowing Michael O’Hara and O’Hara Landscape access to H-2B visa workers to which they were not otherwise entitled.  Finally, the indictment alleges that Michael O’Hara and O’Hara Landscape took steps to conceal from authorities the unlawful nature of Pro Care.

Michael O’Hara, residing in St. Louis County, O’Hara Landscape/Lawn Care, Inc. and Pro Care Environmental, LLC , were each indicted by a federal grand jury on one felony count of conspiracy to commit visa fraud.

If convicted, this charge 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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Department of Labor, Office of Inspector General.  Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.

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

St. Louis, MO – DR. DEVON GOLDING has been convicted of multiple health care fraud related charges for billing for services not rendered and false statements involving a health care benefit plan.  The five-day trial was held before United States District Judge John A. Ross.  The verdict was returned late Friday evening, February 13, 2015.

According to testimony presented at trial, Dr. Golding billed for services on multiple occasions when he was actually out of town.  Dr. Golding employed a registered nurse, who, at various times during her employment from September 2009 to November 2011, took the examination to become certified as a nurse practitioner.  Each time, she failed the examination and advised Dr. Golding that she had failed the examinations.  She worked five days a week and saw patients on these days.  Dr. Golding typically came to the office 2-3 days a week.  In Dr. Golding’s absence, the registered nurse examined and diagnosed patients, prescribed narcotic medications and ordered lab tests for the patients. The registered nurse also completed progress notes for the patients, which Dr. Golding signed upon his return to the office and thereby falsely indicated that he had seen the patients.  Dr. Golding directed the registered nurse to provide these services, although he knew these services were beyond the scope of her license as a registered nurse.

Golding, St. Louis, Missouri, was convicted of three felony counts of health care fraud and two felony counts of making false statements related to health services.  Sentencing has been set for May 21, 2015.
Each count of health care fraud carries a maximum penalty of ten years in prison and/or fines up to $250,000 and each count of making false statements 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 United States Department of Health and Human Services-Office of the Inspector General, the Federal Bureau of Investigation and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorneys Dorothy McMurtry and Gwen Carroll are handling the case for the U.S. Attorney’s Office.

St. Louis, MO – ANTONIO WHITESIDE, St. Louis County, Missouri, was indicted in connection with the attempted arson of the Ferguson Supermarket, Inc. on November 24, 2014.

Whiteside was indicted by a federal grand jury on February 11 on one felony count of attempt to damage and destroy by means of fire and/or explosive materials. Whiteside was taken into custody late Thursday evening.

"The St. Louis County Bomb and Arson Unit and agents with ATF have been working on multiple criminal investigations in the aftermath of the Ferguson rioting.  This indictment is but one result of that collaboration, which is an ongoing effort, and I expect will produce additional indictments at both the state and federal level," said U.S. Attorney Richard Callahan.

If convicted, this charge carries a maximum penalty of 10 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.

INDICTMENT

St. Louis, MO – The United States Attorney’s Office for the Eastern District of Missouri announced that a federal indictment was unsealed earlier today charging six individuals with terrorist related crimes.  Charged in the indictment are:  RAMIZ ZIJAD HODZIC, his wife SEDINA UNKIC HODZI and ARMIN HARCEVIC, all of St. Louis County, Missouri; NIHAD ROSIC of Utica, New York; MEDIHA MEDY SALKICEVIC of Schiller Park, Illinois; and JASMINKA RAMIC of Rockford, Illinois.  All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists.  Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country.

All six individuals are natives of Bosnia who immigrated to the United States.  Three had become naturalized citizens of the United States and the remaining three have either refugee or legal resident status.  Five of the defendants are in the United States and have been arrested.  A sixth defendant is overseas. Defendants Ramiz Hodzic and Sedina Hodzic made their initial appearance before a federal magistrate in St. Louis early this evening.

If convicted, the crimes of conspiring to provide material support carry penalties ranging up to 15 years imprisonment for each count and/or fines up to $250,000.  The crime of conspiring to kill and maim persons in a foreign country carries a penalty of up to life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

"The indictment unsealed today epitomizes the FBI's commitment to disrupting and holding accountable those who seek to provide material support to terrorists and terrorist organizations," said Special Agent in Charge Woods.  "This case underscores the clear need for continued vigilance in rooting out those who seek to join or aid terrorist groups that threaten our national security."

This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U. S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments, with assistance from multiple law enforcement agencies.  The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Mara Kohn, a Trial Attorney in the Counterterrorism Section of the Department of Justice.

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.

INDICTMENT

St. Louis, MO – JOSEPH BROGAN pled guilty to multiple fraud charges related to a scheme involving applications for home loans. 

According to statements made in court during the guilty plea, Joseph Brogan was employed as a loan officer for USA Mortgage Inc., where he handled both conventional mortgages and FHA loans.  Michael Wallis owned and operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses.  Bogan, Wallis and others conspired to obtain loan funds by making false and fraudulent representations on home loan documents, including misrepresenting the source of down payments and misrepresenting remodeling expenses on HUD-1 forms and related loan documents.  Brogan admitted that on at least one occasion, he provided $8,000 in funds toward a down payment while knowing that loan forms and supporting documents falsely represented that the funds came from the nominal purchaser or a relative of the nominal purchaser.  Wallis’ company, Missouri Builders, received disbursements of loan funds based on the false HUD-1 forms and based on false invoices for remodeling expenses.  Wallis then paid Brogan from the illegally obtained loan funds.  Over the course of the conspiracy, Brogan received approximately $94,948 in payments from Wallis.

Brogan, St. Louis, Missouri, pled guilty to one felony count of conspiracy to commit bank fraud and two felony counts of bank fraud before U.S. District Judge Audrey G. Fleissig. Sentencing has been set for May 14, 2015.

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

Michael Wallis previously pled guilty to related charges and is awaiting sentencing.

This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General, the Postal Inspection Service and the Federal Bureau of Investigation.  Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.  

St. Louis, MO – Three tax preparers who worked for Tax King, a local tax preparation business, have been charged for their alleged preparation of false tax returns for customers for tax years 2011 and 2012. 

BROOKLYN WHITE, WILLIE KNOX and ANGEL BAILEY-DYSON, all of St. Louis, were each indicted by a federal grand jury on multiple counts of filing false tax returns. The indictment alleges that the three defendants falsely and fraudulently minimized their customers’ liability and thereby maximized their customers’ tax refunds.  

"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Tanya Brewer, Assistant Special Agent in Charge, IRS Criminal Investigation, St. Louis Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."

If convicted, each count carries a maximum penalty of three years in prison and/or fines up to $100,000.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by Internal Revenue Service-Criminal Investigation.

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 – JACK FRISON, SR. was sentenced to twenty-four months of imprisonment on multiple charges relating to his involvement in the sale of counterfeit goods and DVDs.

According to testimony presented at trial in June, for more than two decades, Frison owned and operated the Frison Flea Market in Pagedale, MO.  Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market.  For more than ten years, many of Frison’s vendors openly sold counterfeit goods from their booths at the Market.  The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs.  Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods.  Rather than removing vendors selling illegal goods, Frison fined them instead, adding to his income.

Frison, of Frontenac, MO, was convicted of one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting felony copyright infringement and one felony count of aiding and abetting trafficking counterfeit goods.  He appeared today for sentencing before United States District Judge Rodney W. Sippel.

This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department.  Assistant United States Attorneys John Bodenhausen and Jennifer Roy handled the case for the U.S. Attorney?s Office.

St. Louis, MO – PIERRE LAMONT PARRISH pled guilty to the October 2, 2014, robbery of the Martinsburg Bank and Trust in Montgomery County, Missouri.

Parrish, Quincy, IL, pled guilty to one felony count of robbery of a federally insured institution before United States District Judge Ronald L. White.  Sentencing has been set for May 1, 2015.

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

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

St. Louis, MO – SABAHADDIN AKMAN, the owner and manager of a Turkish drug wholesaler, was sentenced to 30 months imprisonment and fined $150,000 for smuggling misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) that he sent from Turkey to Chesterfield, Missouri.  Akman also paid a forfeiture of $150,000 before sentencing.  

According to Akman’s plea agreement, Akman’s company used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or "product sample" with no or low declared monetary values.  Akman’s company also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments.  Akman admitted that he shipped some prescription cancer treatment drugs that required constant cold temperatures to maintain their stability and integrity to the United States with no effort or ineffective efforts to maintain temperature protection for the drug shipments.  Akman further admitted that some chemotherapy drugs he shipped to the United States had different lot numbers on the exterior packaging than the lot numbers on the drug vials inside the packages.     

Further, Akman admitted in his plea agreement that his company sold Altuzan® to Richard Taylor, a United Kingdom drug wholesaler.  The U.S. Food and Drug Administration’s ("FDA") Office of Criminal Investigations ("FDA-OCI") previously seized Altuzan® from various U.S. physicians and customers of Taylor in 2012, and ultimately determined that this Altuzan® had no active drug ingredients inside the drug vials and contained mold and water instead of medicine.  FDA issued several public safety alerts about these events.  FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer and Greg Martin, as well as prosecutions in the Southern District of California. 

"Patients receiving cancer treatment drugs should be assured that the medications meet FDA’s standards for safety and quality, said Catherine Hermsen, Special Agent in Charge, FDA Kansas City Field Office. "OCI will continue its vigilance over the prescription drug supply chain to ensure that the drugs reaching patients comply with federal law, and that those who attempt to circumvent the agency’s oversight will be brought to justice."

This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service; the United States Attorney’s Office for the District of Puerto Rico; the Office of Inspector General for the U.S. Department of Health and Human Services; the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory; Europol; the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police; the German State Criminal Police (Landeskriminalamt, LKA); the U.S. Department of State’s Diplomatic Security Service; the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration. 

The case was prosecuted by the Health Care Fraud Unit of the U.S. Attorney’s Office for the Eastern District of Missouri.

St. Louis, MO – MARTIN BACHERT was sentenced to 18 months in prison involving his scheme to sell equipment to an out-of-state buyer, receive payment, but never deliver the equipment sold.  Bachert also sold stolen property to another out-of-state victim.

According to court documents, in November 2012, Bachert, using the alias "Martin Federoa," told a California man, referred to in documents as "MR," that he worked for Emerson Electric Company and that he had connections to various companies to buy electric testing equipment. MR began purchasing equipment from Bachert, and arranged wire transfer payment to Bachert’s PayPal account.  In early August 2013, Bachert sold MR additional merchandise for $15,800, which MR paid via wire transfer. Bachert admitted with his plea that he never intended to provide the equipment to MR.  Instead, Bachert posed as his father and communicated to MR via text message that he had been in an accident, and while he was recovering in the hospital, someone broke into his van and stole the equipment he was going to sell to MR. Bachert then told MR that he was taking a job in the Ukraine and would be able to repay the money for the equipment, plus seven percent interest.  However, Bachert after making even more false representations, ultimately never repaid the money or delivered the equipment. Instead, Bachert used the money he obtained from MR and another victim, to whom he sold stolen merchandise, to pay restitution to the Court at his sentencing in another case involving prior fraudulent and illegal conduct.  

Bachert, St. Louis, Missouri, pled guilty last October to one felony count of wire fraud and one felony count of interstate transportation of stolen property. He appeared today for sentencing before United States District Judge Rodney W. Sippel.

This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Anthony Franks handled the case for the U.S. Attorney’s Office.

St. Louis, MO – CLARENCE LAMONT WILLIAMS and DANIEL MARK RUDROFF were indicted in connection with the August 22, 2014, armed robbery of the Bank Midwest in Randolph County.

Williams and Rudroff, both of Columbia, MO, were each indicted by a federal grand jury late Wednesday on one felony count of bank robbery and one felony count of possession of a firearm in furtherance of a crime of violence.

If convicted, bank robbery carries a maximum penalty of 20 years in prison and/or a fine up to $250,000.  The firearm charge carries a minimum penalty of seven years consecutive to the sentence received in the bank robbery charge.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Kirksville Office of the Federal Bureau of Investigation, Kirksville Police Department, Moberly Police Department, Missouri State Highway Patrol, Randolph County Sheriff’s Office and the Tazewell County, Illinois Sheriff’s Office, with assistance from additional law enforcement agencies.  Assistant United States Attorney Tom Mehan 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 – JOEY D. WOOD was sentenced Tuesday to 18 months in prison for filing four false tax returns for himself and two others, claiming false tax refunds for tax years 2011 and 2012.  He was also ordered to pay restitution of $185,162.

According to court documents, Wood, who was engaged in the business of preparing income tax returns for individuals, filed false tax returns for himself claiming refunds for 2011 and 2012. He also filed false returns claiming refunds for two other people for 2011.   Additionally, on May 17, 2013, Wood was in possession of a firearm.  Due to a previous felony conviction, he is prohibited from owning or possessing firearms.

"Refunds are issued to taxpayers who are entitled to them.  IRS Criminal Investigation will continue to pursue those who file false refunds claims for the sole purpose of enriching themselves," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.

Wood, St. Louis County, Missouri, pled guilty last November to four felony counts of making false statements to the government and one felony count of being a previously convicted felon in possession of a firearm. He appeared yesterday for sentencing before United States District Judge Catherine D. Perry. 

This case was investigated by IRS Criminal Investigation, the St. Louis County Police Department and the Missouri Department of Revenue. Assistant United States Attorney Steven Muchnick handled the case for the U.S. Attorney's Office.

St. Louis, MO – JALIL AL-HANOOSH was sentenced to 15 months in prison on charges involving his scheme to buy food stamps from people for a discounted rate of cash, and redeem them at full value from the government.  He additionally allowed customers to purchase ineligible items, such as cigarettes, telephones, rugs and other non-food items for food stamps.

According to court documents, Jalil Ibrahim Al-Hanoosh, owner of Babylon Grocery & Bakery, St. Louis, was authorized to participate in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. This authorization allowed him to accept and redeem SNAP benefits/food stamps for eligible food items. Food stamp benefits were issued in the form of Electronic Benefit Transfer cards (EBT). Between January 2008, through May 2012, Al-Hanoosh, through Babylon Grocery & Bakery, redeemed approximately $148,000 in illegal SNAP benefits using EBT cards.   

Al-Hanoosh, St. Louis, pled guilty in October to one felony count of wire fraud and two felony counts of food stamp fraud.  He appeared today for sentencing before United States District Judge Catherine D. Perry.

           

This case was investigated by the U.S. Department of Agriculture and the Federal Bureau of Investigation. Assistant United States Attorneys Anthony Franks and Dorothy McMurtry handled the case for the U.S. Attorney’s Office.

St. Louis, MO – RAJU MUKHI was sentenced to three years’ probation, ordered to pay full restitution and agreed to a penalty in the amount of $838,439 for failing to file a report to the IRS on his foreign financial accounts and for filing false tax returns.

United States citizens are required to report income from foreign countries, such as bank accounts, securities and any other financial accounts on their tax returns.  If the value is more than $10,000, they are required to file a Report of Foreign Bank and Financial Accounts, Form TD F90-22.1 (FBAR). 

According to court documents, Mukhi failed to disclose the existence of Clariden Bank and Goldman, Sachs & Company Bank-Singapore accounts and the income earned in these accounts to his tax preparers for the years 2006 and 2008.  Additionally, Mukhi failed to file an FBAR disclosing that he had financial accounts in Singapore and Switzerland for years 2007-2010.

"Hiding income and assets offshore is not tax planning; it's tax fraud," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.  "We are continuing our work to crack down on offshore tax evasion."

Mukhi, St. Louis, Missouri, pled guilty in October to one felony count of filing false tax returns and one felony count of failure to file reports of foreign bank and financial accounts.  He appeared today for sentencing before United States District Judge Audrey G. Fleissig. 

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

St. Louis, MO – LAWRENCE B. IKEN, DPM, and his company each pled guilty to charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken, from 2006 through July 2014. As part of his plea, Dr. Iken has agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the health care claims.  

According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, Missouri. Dr. Iken is a sole practitioner who provided podiatry services to patients at his Manchester and at his Creve Coeur offices and at various nursing homes in the St. Louis area. In addition to his office practice, Dr. Iken is an independent contractor for Preferred Podiatry Group, Inc. (PPG).  According to its website, PPG provides podiatric care to residents in nursing homes and other long-term care facilities in Missouri and five other states.  As a PPG contractor, Dr. Iken provided services to nursing home residents on Wednesdays and Thursdays.  With his plea, Dr. Iken admitted that on thousands of occasions, he billed Medicare, Medicaid and private insurance companies for the incision and drainage of abscesses and hematomas, when he actually only clipped the toenails of the patients.

Iken, of Chesterfield, and his company each pled guilty to one felony count of healthcare fraud before United States District Judge Ronald L. White. Sentencing has been set for April 17, 2015.

Dr. Iken now faces a maximum penalty of 10 years in prison and/or fines up to $250,000; the company faces a maximum fine of $500,000.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

St. Louis, MO – These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases.

According to court documents, in May 2014, individuals residing in Mexico and Arizona initiated a scheme to fraudulently obtain access to the databases of credit card processing systems.  These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases.  Upon obtaining the consent of their recruits, the individuals produced credit cards bearing the names of financial institutions operating in Mexico and embossed with the names of the recruits.  The counterfeit credit cards were hidden in items such as magazines and sent through interstate carriers such as Federal Express to the carriers shipping offices.  A more experienced individual traveled with the recruits in order to instruct them as to the type of purchases to make and how to handle the logistics of the scheme, such as obtaining transportation and lodging.  When the recruits and their supervisor arrived at the designated location, they retrieved the packages from the shipping location, and proceeded to use the counterfeit cards to purchase assorted merchandise. 

In the fall of 2013, unknown individuals breached the database of Heartland Payment Systems, a credit card processing system that services business, such as a restaurant in Ellisville, Missouri.  Unfortunately, the restaurant did not receive notice of the breach until June 2014.  In the intervening time, near May 20, 2014, in Tucson, Arizona, an unidentified individual approached Israel Olivas Jr. with the offer of participating in the scheme.  Olivas agreed to participate and Olivas recruited Carlos Alonso Serna, Jr. to join the endeavor.  Upon obtaining the consent of Olivas and Serna, the unidentified individual introduced Olivas to Luis Ruben Sanchez-Castro, a citizen of Mexico who entered the United States in Nogales, Arizona, with proper documentation.  Sanchez-Castro had participated in the conspiracy on four to five occasions prior to meeting Olivas.

Olivas, Serna and Sanchez-Castro flew from Arizona to Kansas City, Missouri, in May 2014.  Sanchez-Castro rented a vehicle using a counterfeit credit card. He and Olivas drove to a FedEx store in the Western District of Missouri to accept delivery of the package containing the counterfeit credit cards that had been sent from Arizona.  Between May 22, 2014, and May 26, 2014, Olivas, Serna and Sanchez-Castro traveled from the Western District of Missouri, to the Eastern District of Missouri and continued to the Southern District of Illinois, using counterfeit credit cards embedded with the account numbers of individuals they believed to be residents of the St. Louis Metropolitan area.  Of the 155 cards transported into the Eastern District of Missouri, the account numbers of approximately 105 residents of the St. Louis Metropolitan area were embedded on the cards bearing the names of the defendants.  As a result of the number of cards, the loss exceeded $70,000

Olivas, Serna, Jr. and Sanchez-Castro appeared today for sentencing before United States District Judge Carol E. Jackson.  Sanchez-Castro, who was also charged with aggravated identity theft, was sentenced to 45 months incarceration. Olivas was sentenced to 24 months incarceration and Serna, Jr. received a sentence of 30 months incarceration.  Each of the defendants was also ordered to pay restitution to the identified victims of the scheme. 

Two additional people, Yesenia Melissa Celaya-Rivera and Yennica Guadalupe Soto-Campa, citizens of Mexico, were charged this week in a separate indictment based upon their participation in the scheme between December 12 and December 15, 2014.

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. 

These cases were investigated by the United States Postal Inspection Service, the Illinois State Police and the City of Chesterfield, Missouri Police Department.  Assistant United States Attorney Tracy Berry handled the cases for the U.S. Attorney's Office.

St. Louis, MO – MALIK MUHAMMED was sentenced to 15 months imprisonment, a restitution award of $153,101 payable to three automobile insurance companies and a $10,000 fine, for making three false statements to insurance companies about providing medical services to patients when no chiropractor was working at the clinic or the clinic was actually closed. 

According to the court documents, Muhammed owned and operated the Your Accident and Injury Clinic (“YAIC”) located at 7320 Florissant Road in St. Louis County.  Typically, he hired one chiropractor at a time to service all of YAIC’s patients.  The clinic’s chiropractor worked part-time, usually every Tuesday and Thursday.  Muhammed repeatedly billed automobile insurance companies for treatments and procedures provided to patients at his clinic when, in reality, no licensed health care provider was present, including multiple bills for services occurring on Sundays when the entire clinic was closed.        

Muhammed, Florissant, MO, pled guilty to three felony counts of making false statements relating to health care matters last September. He appeared today for sentencing before United States District Judge John A. Ross. 

This case was investigated by the Federal Bureau of Investigation, with assistance from the National Insurance Crime Bureau.

St. Louis, MO – JOHN WEHRLE was indicted for tax evasion and filing false tax returns. 

According to the indictment, Wehrle transferred more than $700,000 to his personal bank account during 2008 and 2010 from an account he controlled with funds generated by venture capital investment management companies he lead.  When questioned about the transfers during an IRS audit, Wehrle is alleged to have created backdated loan documents to support his contention that the transfers were loans rather than income.

Wehrle’s business partner in the venture capital management businesses, Burton Douglas Morriss, pleaded guilty to tax evasion in 2013 and is serving a five-year sentence for his offense.

"Honest taxpayers need to be reassured that everyone is paying their fair share," said Tanya Brewer, Acting Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.

Wehrle, St. Louis County, was indicted by a federal grand jury Wednesday on two counts of tax evasion and two counts of filing a false tax return.

If convicted, Wehrle faces a maximum penalty of five years in prison on each of two tax evasion counts and up to three years in prison on each of two counts of filing a false tax return.  Each of the four counts carries a maximum fine of $100,000.  Restitution will also be sought for the defendant’s additional tax liability. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by Internal Revenue Service Criminal Investigation.  Assistant United States Attorney 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.