Eastern District of Missouri

St. Louis, MO – JEFFREY LAVELLE, owner and operator of J. L. Manufacturing pled guilty to multiple counts of mail and wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts.

Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis.  Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.

J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium-sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts.   Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.

Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing.  Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts. 

Globe Dynamics International, Inc., Santa Ana, California is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components.  Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts.  William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.

Beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes.  Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of those nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of approximately $2,052,746.  In exchange for that information, they made cash payments to Anderson in St. Louis and in California.

Jeffrey Lavelle, Mukilteo, WA, pled guilty to one count of mail fraud and two counts of wire fraud before United States District Judge Henry Autrey, in St. Louis.  Sentencing has been set for October 27, 2014.

Co-defendants Deon Anderson, St. Louis; William P. Boozer, Hacienda Heights, CA; and Robert Diaz, Jr., Alta Loma, CA, previously pled guilty to related charges and are scheduled for sentencing October 15, 2014, August 15, 2014, and September 2, 2014, respectively.

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

This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service, and Internal Revenue Service-Criminal Investigations.  Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – St. Charles County attorney JEFFREY WITT pled guilty to three (3) federal felony charges: falsifying documents to obtain a bank loan secured by a St. Louis County home, which did not actually belong to him; using an associate to impersonate the true home owner at the bank loan closing; and cashing legal client settlement checks without their knowledge.

According to court documents and statements made in court, during September 2013, Witt submitted a loan application in the name of an individual identified in documents as PW, in order to obtain a $100,000 line of credit secured by the PW’s St. Louis area residence.  PW, the individual home owner was unaware of Witt’s loan application. Witt provided a female associate with false documentation and identification in PW’s name so the associate could impersonate PW during the loan closing at the bank.  Together they were able to obtain the $100,000 bank loan credit line.  Witt immediately drew out $60,000 from the credit line, which he deposited into his law firm bank account and then withdrew for personal purposes.  Subsequent to the loan closing, PW learned of Witt’s action and confronted him.  In order to conceal the scheme, Witt falsely represented to PW that he had cancelled the loan.  To convince PW, Witt created a false letter on fake bank letterhead, forged the signature of a bank officer and created a false “Deed of Release,” all of which purportedly released the Deed of Trust on PW’s home securing the fraudulent t loan.

Additionally, as part of his law practice, Witt would enter into settlement discussions on behalf of one and more of his legal clients. Several times, without the knowledge of his clients, Witt settled their legal cases, accepted settlement checks on their behalf and forged their signatures on their settlement checks.  He admitted with his plea that he deposited the checks into his law firm bank account and spent those funds on his own personal expenses and business expenses unrelated to those clients without their knowledge.  Further, and in order to conceal his scheme, Witt falsely represented to his clients that he had not settled their cases or received settlement checks.

Witt was arrested on the charges by FBI Special Agents on March 7, 2014, as he arrived in New York City from Turkey.

Witt, St. Charles, MO, pled guilty to one felony count of bank fraud, one felony count of aggravated identity theft and one felony count of mail fraud before United States District Judge E. Richard Webber.  Sentencing has been set for October 16, 2014.

Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million, mail fraud carries a maximum of 20 years in prison and/or fines up to $250,000 and aggravated identity theft carries a mandatory 2-year term of imprisonment consecutive to any term of imprisonment on the fraud charges 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. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office. 

St. Louis, MO – RONALD L. ROBERTS pled guilty today to charges of mail and wire fraud in connection with his obtaining more than a million dollars from lenders in what he now admits was 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’s 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 to three felony counts of wire fraud and one felony count of mail fraud. He appeared before United States District Judge E. Richard Webber, in St. Louis. Sentencing has been set for October 16, 2014.

Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines 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 is being investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – OZKAN SEMIZOGLU, the “Foreign Trade Director” of a Turkish drug wholesaler, pled guilty today to smuggling counterfeit, misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) sent from Turkey to Chesterfield, Missouri. Sentencing is set for October 28, 2014.

According to Semizoglu’s plea agreement, Semizoglu 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.  Semizoglu 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.  Additionally, Semizoglu shipped some prescription drugs that needed constant cold temperatures to maintain their stability and effectiveness in shipping boxes without insulation or any temperature protection whatsoever.  Given the length of time required to ship products from Turkey to Missouri, Semizoglu was aware that on many occasions the packages arrived in the United States at temperatures outside the constant cold temperature range discussed on the drugs’ labeling. 

Further, Semizoglu admitted in his plea agreement to selling 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 physician/customers of Taylor in 2012, and ultimately determined that this Altuzan® from Taylor and Semizoglu was counterfeit, with no active drug ingredient in the drug vials.  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, Greg Martin, Kamaldeep Sandhu and Navdeep Sandhu.       

“Today’s guilty plea marks a significant step in national and international cooperation,” said Philip J. Walsky, acting director, FDA Office of Criminal Investigations. “Federal, state and local officials in the U.S. and Germany and at Europol worked together in partnership to help protect the public’s health and remove a potentially unsafe medication from the U.S. marketplace.”

This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service; Rosa Emilia Rodríguez-Vélez , the United States Attorney 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.  

St. Louis, MO –  United States Attorney Richard G. Callahan today announced that the U.S. Attorney’s Office has filed a Motion to Intervene on behalf of the FBI in the ACLU lawsuit seeking the release of FBI reports in possession of St. Louis County under the Missouri Sunshine law. Callahan explained that the objective of the Motion is not necessarily to prevent the disclosure of any specific reports, but rather to preserve the principle that any public release of FBI reports must be pursuant to and governed by federal law, not state law.

St. Louis, MO –  MARK JACKSON, Brookfield, MO, was sentenced to 63 months in prison for his possession of child pornography between January 2008 and November 2011.

He pled guilty in March to one felony count of possession of child pornography. He appeared today for sentencing before United States District Judge Henry E. Autrey.

This case was investigated by the Kirksville Office of the Federal Bureau of Investigation, the Kirksville Police Department, Brookfield Police Department, Kirksville Regional Computer Crimes Unit and the Linn County Prosecuting Attorney’s Office. Assistant United States Attorney Erin Granger handled the case for the U.S. Attorney’s Office.

St. Louis, MO –  WARREN J. GLADDERS, Wentzville, MO, pled guilty to three armed bank robberies committed in July, August and September 2013.  On July 7, 2013, Gladders took approximately $7,000 from the Reliance Bank located in Creve Coeur, Missouri.  On August 2, 2013, Gladders took approximately $5,000 from First National Bank located in Weldon Springs, Missouri.  On September 20, 2013, Gladders took approximately $43,000 from the First Bank located in Marthasville, Missouri.  In each instance, Gladders entered the banking institution and threatened the bank teller(s) while displaying a firearm.  

On September 20, 2013, Gladders fled the scene of his final bank robbery in his personal vehicle.  Gladders was traveling at a high rate of speed.  A witness outside of First Bank observed the robbery in progress.  The witness was able to obtain a partial license plate number and description of Gladders’ vehicle.  That information was provided to law enforcement officials.  A Missouri State Highway Patrol trooper observed a vehicle matching the description and license plate number and followed it.  The trooper pursued and caught up to Gladders and his vehicle.  The trooper activated his vehicle’s emergency lights and sirens.  Gladders eventually pulled his vehicle over.  The trooper exited his vehicle and demanded that Gladders get out of his vehicle.  As the trooper was exiting his vehicle, Gladders exited his.

As Gladders exited his vehicle, he raised the Smith and Wesson revolver possessed by him and shot at the trooper approximately four times.  One of those shots struck the trooper in the center of the trooper’s chest.  The trooper was protected by his protective vest.  The bullet from Gladders’ firearm penetrated the vest but not the trooper’s body.  The trooper was able to return fire.  The trooper struck Gladders at least once in the leg.  Gladders fell to the ground and the firearm fell out of Gladders’ hand.  Gladders attempted to regain control of his firearm.  The trooper fired additional warning shots at Gladders -- not striking him.  Gladders stopped moving at that point.  The trooper was able to remove Gladders’ firearm from his proximity and place Gladders under arrest.  Multiple law enforcement officials from various agencies responded to the scene.  Gladders was taken into custody and transported for medical attention.

Following Gladders’ arrest, search warrants were obtained for his vehicle, residence and business.  Among other things, most of the items worn or used by Gladders during the armed bank robberies were located and seized by law enforcement.  Furthermore, an officer recovered and seized what is commonly referred to as a “sawed-off shotgun” from inside Gladders’ vehicle.

Gladders entered his plea before United States District Judge Carol E. Jackson, who has set sentencing for October 16, 2014.

Each armed bank robbery charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000.  For his use and discharge of the firearm, Gladders is facing a maximum possible penalty of life in prison.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. 

In addition to the Federal Bureau of Investigation, this case was investigated by the Missouri State Highway Patrol, the Warren County Sheriff’s Department, the St. Charles County Sheriff’s Department, the Creve Coeur Police Department, the Montgomery County Sheriff’s Department, the Jonesburg Police Department and the Wright City Police Department, along with coordination amongst the Warren County, St. Charles County and St. Louis County Prosecuting Attorneys’ Offices.

St. Louis, MO –  JILLIAN NICHOLS, a local paralegal, pled guilty to charges involving her attempt to defraud a law firm client by falsely representing that the prosecutor on the client’s criminal case had solicited a bribe.  Nichols also pled guilty to charges that she lied to the FBI during their investigation of her illegal conduct.

According to court documents and statements made in court at the time of her guilty plea hearing, Nichols worked for a local law firm, assisting one of the firm’s attorneys on his legal cases.  She had no formal legal training and was paid hourly. While she was working at the firm, she worked on the defense of a state felony criminal case pending in St. Louis County Circuit Court against a firm client.  As part of her duties, she worked closely with the client in investigating and helping prepare his defense, often meeting with him, as well as speaking with him on the telephone and texting, outside the presence of the defense attorney. 

Nichols left the defense attorney’s firm in September 2013.  After Nichols left the law firm she continued to meet with the client and discuss his criminal case with him.  Between June and December 2013, Nichols engaged in a scheme to defraud the client by falsely telling him that the St. Louis County assistant prosecutor assigned to his case had solicited a bribe of $10,000 in order to give favorable consideration in his pending criminal case. Further, she falsely represented that she had favorable evidence "planted" on the client’s cell phone in order to support his defense. She also falsely represented that she had paid the forensic expert hired by the defense attorney to analyze his cell phone so that the expert would validate and verify the "planted" evidence.  On November 15, 2013, in response to Nichols’ false statements about the $10,000, the client agreed to give her an initial $5,000 in cash for her to pay the bribe to the prosecutor, and then an additional $5,000 after the prosecutor gave him favorable consideration in his pending criminal case. In order to conceal the scheme, she told the client not to tell his defense attorney of their discussions about bribing the prosecutor or planting evidence on his cellular phone. 

During the FBI’s investigation of her fraud scheme, Nichols lied repeatedly to Special Agents about her involvement in the scheme when they interviewed her during December 2013.

Nichols, St. Louis, Missouri, pled guilty to one count of wire fraud and one count of making false statements before United States District Court Judge Rodney W. Sippel.  Sentencing has been set for September 19, 2014.

Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Making false statements carries a maximum penalty of 5 years 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-Public Corruption Task Force, including officers of the St. Louis Metropolitan Police Department.  Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.

St. Louis, MO –  RICHARD SADDLER owned Omicron Capital LLC, a local St. Louis company purportedly in the business of assisting customers in refinancing commercial and real estate loans. 

According to court documents and statements made in court, between January 1, 2010, and March 31, 2012, Saddler accepted roughly $350,000 from at least nine customers, falsely representing that the money would be used for down payments or appraisals relative to commercial and real estate refinancing deals.  Instead, Saddler actually used the money to pay the mortgage on his own home, which was in danger of foreclosure, as well as airline tickets, meals and other personal expenses.  Saddler’s victims were located throughout the United States.  During 2006, Saddler was convicted and sentenced to 14 months in federal prison relative to a similar fraud scheme also involving his company, Omicron Capital LLC.  On this new conviction, he was sentenced today to 33 months in prison and ordered to pay restitution of $335,650.

Saddler, St. Louis County, pled guilty to three felony counts of wire fraud in March and appeared today for sentencing before United States District Judge Catherine D. Perry. 

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

St. Louis, MO –  JAMES STALEY was indicted for his alleged scheme to defraud investors by making false promises of high rates of return and minimal risk. The indictment states that Staley defrauded eleven investors/lenders by causing them to invest over $3.4 million, giving him commissions totaling over $570,000.

According to the indictment, in 2007, James Staley operated Wealth Financial International.  That same year, he became a sales agent for a Premium Financing Company located in California known as B & B Equity.  As a sales agent Staley found individuals to provide loans for life insurance policies.  In many instances, several of these investor/lender’s funds were bundled together to provide financing to purchase one life insurance policy.  Staley received a commission for each investor/lender that he found to contribute financing for the purchasing of the life insurance policies. B & B required the lender/investor to invest in the insurance policy for a fixed period of time varying from 18 months to two years.  During this period of time Staley represented to clients of Wealth Financial that B & B Premium Financing Company would sell the bundled insurance policies on the open market with guaranteed returns. However, Staley was well aware that if B & B was unable to secure a buyer for the bundled insurance policies, his clients would lose all their monies invested in the Premium Financing product sold by B & B.  The indictment states that Staley defrauded eleven investors/lenders by causing them to invest over $3.4 million with B & B, giving him commissions totaling over $570,000.

Staley, Wentzville, MO, was indicted by a federal grand jury on three felony counts of wire fraud on June 18, 2014.  He appeared in federal court earlier this week.

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

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

St. Louis, MO –  RAJU MUKHI was indicted for his alleged failure 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 account, 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 the indictment, 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.  The indictment also states that Mukhi failed to file an FBAR disclosing that he had financial accounts in Singapore and Switzerland for years 2007-2010.

Mukhi, St. Louis, MO, was indicted by a federal grand jury on two felony counts of filing false tax returns and four felony counts of failure to file reports of foreign bank and financial accounts.  The indictment was returned June 5th, but remained sealed until the arrest of the defendant. He is expected to appear in federal court for arraignment this morning.

If convicted, each count of filing false tax returns carries a maximum penalty of three years in prison and/or fines up to $100,000. Each of the other counts carry 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 Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.

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

St. Louis, MO –   ELIJAH BOYKINS of St. Louis, Missouri, was sentenced to 33 months imprisonment for possession with the intent to distribute heroin.  Boykins appeared before Judge Henry E. Autrey in U.S. District Court in St. Louis.

According to his March plea agreement, St. Louis police found approximately one ounce of heroin divided into more than 100 doses at Boykins’ home in St. Louis while executing a search warrant on February 10, 2014.  Additionally, more than $3,000 in cash was found and was forfeited as part of the plea agreement. Boykins, who was on federal supervised release for a 2007 weapons offense, also had his supervision revoked in that case as a result of the new case.

The case was investigated by the St. Louis Metropolitan Police Department.  Tom Albus handled the case for the U.S. Attorney’s Office.

St. Louis, MO –  Within the last thirty hours, twenty-eight people have either been arrested or have surrendered on multiple charges contained in four separate indictments alleging offenses involving the manufacturing and sale of synthetic drugs.  Specifically charged in each indictment are:  a) conspiracy to distribute and possess with the intent to distribute Schedule I controlled substances and Schedule I controlled substance analogues; b) conspiracy to introduce and receive misbranded drugs in interstate commerce; c) conspiracy to import controlled substances and controlled substance analogues; d) conspiracy to receive, sell and facilitate the transportation of smuggled goods with forfeiture allegations; and e) money laundering counts. 

The manufacture of synthetic drugs is a recent development designed to circumvent traditional drug laws by creating new chemical compounds that mimic the effects of drugs like marijuana and cocaine, but purport to avoid the classification of a controlled substance because of a chemical alteration. The synthetic drugs are most frequently marketed as legitimate products and sold in typical commercial outlets such as convenience stores and gas stations.  The drugs masquerade as incense, potpourri, glass cleaner, bath salts, and plant food, just to name a few; their cost however is much higher than the normal commercial product they mimic.

One group of synthetic drugs is made up of cathinones, and is a “speed” type drug commonly marketed as bath salts.  The synthetic cathinones are typically snorted and are packaged in containers with names such as Full Throttle, Fresh, Limited, Starry Nights, Twisted, Pump It and Blitz.  Reported effects have included hypertension, paranoia, anxiety and even psychosis.

Another group of synthetic drugs is made from synthetic cannabinoids which are a far more powerful and unpredictable form of marijuana.  The cannabinoids are typically smoked and are packaged in multi-gram packets with names such as Mega Kush, Mad Hatter, Bayou Blaster, Avalon, Pirates Booty, Lights Out, Golden Leaf, DEEW, Cloud 9, Primo, Optima and Crazy Eyes. Although commonly referred to as synthetic marijuana, the effects are far more powerful and dangerous than so-called natural marijuana, with reported additional effects, including excessive heart rate, vomiting and seizures.

United States Attorney Richard Callahan warned, "Parents should not be lulled into a false sense of confidence that these substances must be okay just because they were purchased down at the corner gas station or convenience store.  The bottom line is that these drugs are extremely dangerous, and the ingestion of these substances has led to serious medical consequences requiring hospitalization and even death and suicide."

"These drugs can cause serious health problems or even kill those who ingest them," said James Gibbons, Deputy Special Agent in Charge for HSI Chicago, which oversees St. Louis. "Homeland Security Investigations will continue to work with our federal, state and local law enforcement partners to identify these criminal schemes, seize their unregulated contraband and bring purveyors of synthetic drugs to justice."

IRS Criminal Investigation Special Agent in Charge James C. Lee stated, "IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society.  IRS-CI will continue to investigate and protect the American people." 

Charged in the first indictment (4:14CR00150 JAR) are:

• Anwer Rao, O’Fallon, IL
• Michael Lentsch, O’Fallon, IL
• Matthew Fiedler, Belleville, IL
• Larry Farmer, Jr., Keyesport, IL
• Charles Kinney, O’Fallon, IL
• Brandien Robinson, O’Fallon, IL
• Mansi Patel, Phoenix, AZ

Charged in the second indictment (4:14CR00152 FWS) are:

• Greg Sloan, St. Charles, MO
• Doug Sloan, Indianapolis, IN
• Igor Holdaiy, St. Louis, MO
• Elizabeth Pogue, Bridgeton, MO
• Charles Wolfe, St. Peters, MO
• Brett Beeman, O’Fallon, MO
• Sherri Beeman, O’Fallon, MO
• Roger Galvin, Charlack, MO
• John Galvin, St. Louis, MO
• Robert Jaynes, Jr., Indianapolis, IN
• Kirk Parsons, Indianapolis, IN
• David Neal, Carmel, IN
• Marcia Gronek, St. Peters, MO

Charged in the third indictment (4:14CR00175 AGF) are:

• Mark Palmer, Granite City, IL
• Anthony Palmer, Mt. Vernon, IL
• Samuel Leinicke, Arnold, MO
• Charles Wolfe, St. Peters, MO
• Robert Wolfe, Hazelwood, MO
• Joseph Gabrick, O’Fallon, MO

Charged in the fourth indictment (4:14CR000187 JAR) are:

• Pamela Tabatt, St. Peters, MO
• Richard Gross, Winfield, MO
• Paul Berra, Jr., Warrenton, MO

If convicted, the drug conspiracy charges and money laundering conspiracy charges carry a penalty of up to 20 years in prison for each count and/or fines ranging from $500,000 to $1,000,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  Additionally the indictments seek forfeiture of assets and property totaling more than $12 million. 

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, the Postal Inspection Service and the Federal Bureau of Investigation.  Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, MO Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern IL, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorneys offices in St. Louis County, MO, St. Charles County, MO, Madison County, IL and St. Clair County, MO.  Assistant United States Attorneys James Delworth, Erin Granger, Jennifer Winfield and John Mantovani are handling the cases 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 – DEANDREA ROBINSON, St. Peters, MO, pled guilty to one count of aggravated identity theft for an equity stripping real estate fraud scheme that victimized a homeowner in north St. Louis County. 

According to the plea agreement, Robinson stole the identity of an individual homeowner to take control of the business entity that owned her home.  Then, Robinson borrowed against the homeowner’s equity in the home.  When Robinson failed to repay the loan, the lender initiated foreclosure on the homeowner, who was not even aware of the loan. After the criminal investigation of the matter began, the lender agreed to halt the foreclosure and the homeowner remains in her home.

Robinson, who has previously been prosecuted in the Eastern District of Missouri for real estate fraud, went into custody after U.S. District Judge John Ross accepted his plea.  Robinson will serve 2 years in prison for aggravated identity theft and will be ordered to pay restitution to the lender he defrauded.  Sentencing has been set for September 11, 2014.

The U.S. Postal Inspection Service investigated the case.  Tom Albus is handling the case for the U.S. Attorney’s Office.

St. Louis, MO –These seven people have been arrested on an indictment for their alleged participation in a methamphetamine conspiracy beginning as early as 2009 and continuing until 2013, in Knox and Adair Counties. They are expected to appear in federal court this week.

JONATHAN R. PREBE; JESSICA A. RUDD; and JERRY E. DAVIS, all of Edina, MO, were indicted on one felony count each of conspiracy to possess pseudoephedrine for the manufacture of methamphetamine and possession of pseudoephedrine for the manufacture of methamphetamine.

BILLY J. REARDON, Quincy, IL, SARAH S. BAKER, Brashear, MO, ASHLEY N. REARDON, Quincy, IL, and ANGEL RYAN, Woodstock, IL, were each indicted on one felony count of possession of pseudoephedrine for the manufacture of methamphetamine.

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

This case was investigated by the Missouri State Highway Patrol’s Division of Drug & Crime Control - Narcotics/Vice Unit and the Knox and Adair County Sheriff’s Offices. Assistant United States Attorney John Mantovani 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 – ROBERT PALMER and MARK DRIVER plead guilty late Thursday to defrauding numerous elderly victims of approximately $3,000,000, beginning in 2004 and continuing through 2010.

According to the indictment, Princeton Partnership, LLC, was an insurance brokerage business involved in the sale of life insurance products.  Princeton operated out of offices in the Hill area of St. Louis, at 1928 Marconi Street (also known as 5149 Daggett Avenue). Palmer and Driver both ran the day-to-day operations of Princeton, solicited customers, marketed the company's services and had financial oversight of the company with authorization over the company's two operating bank accounts. Palmer and Driver solicited Princeton customers with the false promises that they would invest the customers' funds in suitable investments, including but not limited to real estate, stocks and life insurance annuities.  Examples of those victims include: During 2004 Palmer solicited several members of a family who had received funds upon the death of their elderly aunt with the false representation that Princeton would place those funds in a real estate investment for the benefit of those customers.  Based upon his false representations, the family members transferred some or all of those funds to Princeton.

In 2005 Palmer solicited funds from an elderly individual and her family with the false representation that they would place those funds in a real estate investment for her benefit.  Based on those representations the family transferred her funds to Princeton.

During 2006 through 2010 Palmer solicited investment funds from two elderly sisters with the false representations that Princeton would make suitable investments with those funds.  They transferred their funds and control of their stock holdings to Princeton and, later Palmer and Driver sold and liquidated the stocks and persuaded one of the sisters to liquidate a life insurance policy as well and transfer the funds to Princeton.

During 2007 through 2009 Driver solicited investment funds from an elderly woman who transferred her funds, as well as control of her stock holdings to Princeton.

In 2006, an elderly woman was solicited by Driver to invest her personally held funds in a series of life insurance annuities through Princeton.  Princeton used her funds to purchase four (4) life insurance annuities.  As a further part of the scheme, during in or about 2008 and 2009, at Driver’s direction, she liquidated three (3) of her life insurance annuities and provided those funds to Princeton based upon the false representations that the funds would be placed in suitable investments for her benefit.

Most or all of the funds transferred to Palmer, Driver and Princeton by the numerous victims were used by Palmer and Driver for their own personal uses and the general operating expenses of Princeton.  Palmer and Driver also engaged in Ponzi-type transactions where they used some funds provided by new customers to pay old customers who falsely believed they were receiving the returns on their purported investments.

In all cases Palmer and Driver obtained approximately $3,000,000 from Princeton customers based upon their false representations, which they used for their own personal use and for the expenses of their company Princeton.

Palmer, Kansas City, Missouri; and Driver, St. Louis, Missouri, pled guilty to all charges contained in the indictment, including two felony counts of mail fraud and two felony counts of wire fraud, before United States District Judge Rodney Sippel.  Sentencings have been set for September 12, 2014.

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

This case was investigated by the Federal Bureau of Investigation and the Postal Inspection Service, with assistance of the Missouri Secretary of State’s Office.  Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.

St. Louis, MO –  JOEY D. WOOD was indicted for allegedly filing six false tax returns for himself and three others claiming refunds totaling over $27,000 for tax years 2011 and 2012.

According to the indictment, Wood filed false tax returns for himself claiming refunds for 2011 and 2012, and filed false returns claiming refunds for three other people for the same years.   The indictment also alleges that on May 17, 2013, Wood was in possession of one or more firearms.  Due to a previous felony conviction, he is prohibited from owning or possessing firearms.

Wood, St. Louis County, MO, was indicted by a federal grand jury on six felony counts of filing false tax returns and one felony count of being a previously convicted felon in possession of a firearm. The indictment was returned May 28th, but remained sealed until the arrest of the defendant earlier today.

If convicted, each of the tax counts of the indictment carries a maximum penalty of five years in prison and/or fines up to $250,000, the firearms charges carries a maximum 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 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 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 –  ROBERT DIAZ JR., a consultant to a Boeing sub-contractor, pled guilty to fraud charges in connection with a bribery/kickback scheme involving Boeing military aircraft parts during May 2011 through April 2013.

Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis.  Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.

J. L. Manufacturing, of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium-sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts.   Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company and oversaw all financial aspects of the company.

Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing.  Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts. 

According to the court documents, beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes.  Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of the those nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of orders totaled approximately $2,052,746.  Diaz’s scheme went from May 2011 through April 2013. In exchange for that information they made cash payments to Anderson in St. Louis and in California.

Robert Diaz, Jr., Alta Loma, CA, pled guilty to two felony counts of mail fraud and one felony count of wire fraud before United States District Judge Henry Autrey, in St. Louis.  Sentencing has been are set for September 2, 2014.

Co-defendant William P. Boozer, Hacienda Heights, California, pled guilty to related charges in May and is scheduled for sentencing August 15, 2014. 

Co-defendants Deon Anderson, St. Louis; and Jeffrey Lavelle, Mukilteo, WA; are facing related charges and are presumed innocent until and unless proven guilty.

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

This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service-Criminal Investigations.  Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – RASHAD SHABAZZ, of St. Louis, pleaded guilty to trafficking in counterfeit goods this morning.  He appeared before U.S. District Judge Carole E. Jackson, who accepted his plea and set sentencing for August 29, 2014.  At sentencing, Shabazz faces up to 10 years imprisonment, a fine of up to $2,000,000 or both.

According to the plea agreement, on November 5, 2013, Shabazz was found to be running an open-air store offering counterfeit apparel from purveyors such as Polo Ralph Lauren, Nike, Timberland and True Religion, as well as counterfeit electronic media.  Shabazz admitted that he knew the merchandise he was selling was counterfeit and also admitted he had received the goods from interstate and foreign shipments.

The case was investigated by the St. Louis Metropolitan Police Department and the United States Department of Homeland Security.

St. Louis, MO – JASON RAUSCHELBACH was sentenced to 24 months in federal prison after pleading guilty to conspiring to defraud the United States and several banks through his business, The Mortgage Store, Inc., in 2008.  United States District Judge Henry E. Autrey imposed the sentence today and also ordered Rauschelbach to pay restitution.
 
According to court documents, Rauschelbach was the CEO of The Mortgage Store, Inc. (TMS) and the president of Title America.  By 2008, TMS was a major mortgage brokering business with officers 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. In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Rauschelbach and others at TMS caused insufficient funds checks drawn on the checking accounts of both TMS and Title America to be deposited between those accounts in such a way that the “float” concealed the true balances of each account.  The accounts were at Enterprise Bank in Clayton and at the First Bank of the Lake in Osage Beach, Missouri.  The TMS account had a negative balance of approximately $850,000 in June, 2008, when the banks stopped accepting the floated checks.

Rauschelbach’ s guilty plea also involved submitting a false net worth statement to HUD and failing to pay over about $31,000 in employees’ withholdings for a 401K plan and health insurance.  Restitution payments will be first directed to reimburse those employees.

Court documents showed that Rauschelbach received substantial distributions from TMS and Title America in 2008 despite the federal employment tax delinquencies and other unpaid liabilities, as well as the artificial balances being maintained in the TMS and Title America checking accounts.  In addition, he and others at TMS directed that TMS funds be paid on loans on 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 

Rauschelbach, of O’Fallon, Missouri, will voluntarily surrender to a prison facility when it is designated. 

This case was investigated by the FBI, IRS Criminal Investigation and the Inspector General Offices of HUD and the Department of Labor. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney's Office.

St. Louis, MO – EXCEDRIN COLLINS was sentenced to 84 months in prison for forcibly assaulting agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives with an automobile.

According to court documents, on May 20, 2013, in the City of St. Louis, Collins forcibly assaulted agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), while the agents were engaged in the performance of their official duties, and in the commission of the assault, Collins used a deadly or dangerous weapon, that is, an automobile.

In the days leading up to May 20, 2013, an ATF undercover agent arranged to meet with Collins’ co-defendants Lonnell Wilson and Retonio Dickerson to purchase a firearm for $500.

On May 20, 2013, Collins drove Wilson and Dickerson to meet the undercover agent in a white Ford Expedition, a full-sized sport utility vehicle.  Collins, Wilson and Dickerson met the undercover agent at Sherman Park, in North St. Louis City.

With Collins and Dickerson present, Wilson showed a Browning 9mm semi-automatic pistol to the undercover agent.  The undercover agent, Wilson and Dickerson discussed the purchase of the Browning 9mm pistol. The undercover agent handed Wilson $500 in recorded ATF buy money.  Wilson handed the money to Dickerson, who counted the money and returned it to Wilson.  Dickerson then grabbed the Browning 9mm pistol away from the undercover agent.  Collins, Wilson and Dickerson fled to the Ford Expedition.  The entire transaction was audio and video recorded.

Wilson pointed and discharged the Browning 9mm pistol at the undercover agent, who was engaged in the performance of his official duties.  Collins, Wilson and Dickerson then fled in the Ford Expedition, with Collins driving.

While exiting Sherman Park, Collins knowingly and intentionally rammed the Ford Expedition into an ATF vehicle, in which three ATF agents were responding to the scene of the assault.  The ATF agents were engaged in the performance of their official duties.  The ATF vehicle sustained significant damage.

Collins fled from pursuing ATF agents at speeds exceeding 100 miles per hour on busy residential streets, which recklessly created a substantial risk of death or serious bodily injury to other persons. 

Collins, Madison, IL, pleaded guilty on January 9, 2014, to one felony count of forcibly assaulting an agent with a deadly or dangerous weapon. He appeared today for sentencing before United States District Judge Catherine D. Perry.

This case was investigated by ATF.  Assistant United States Attorney Cristian M. Stevens is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – CARY JORDAN was sentenced to 18 months on fraud charges involving his diversion of over $500,000 of client funds for his personal use.  Additionally, he was ordered to pay restitution of $519,975.

According to court documents, Cary Jordan owned and operated the Jordan Group, which was in the business of assisting companies in placing advertisements with various print, radio, television and outdoor media companies throughout the United States and Canada. Jordan Group clients contracted them to act on their behalf in finding media outlets for their advertising campaigns.  Once the Jordan Group located media outlets in the appropriate geographical location for the advertising campaigns, they negotiated with the media outlets on behalf of its clients and invoiced a pre-bill to the client based on the price and estimated number of advertising spots negotiated with the media outlets.  In turn, clients paid the Jordan Group based on the pre-bill.  After the ads ran, the media outlets invoiced the Jordan Group based on the price and actual number of advertising spots that ran.  The Jordan Group then made payment to the media outlet from the funds it received from its client due to the pre-bill. 

Between January and October 2008, the Jordan Group ceased paying the media outlets for their advertising spots.  Instead, Cary Jordan diverted funds for his personal use and invested in other non-related investment opportunities.  

Jordan, formerly of Webster Groves, MO, currently residing in Florida, pled guilty in February to two felony counts of mail fraud. He appeared today for sentencing before United States District Judge John A. Ross. 

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

St. Louis, MO –The United States Attorney's Office announced today that DERIC S. SILMAN of Fenton, Missouri, was sentenced today to 72 months for 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.

On March 9, 2013, a dispatcher for the Ellsinore Police Department received a telephone call from an individual stating Silman was at his residence and that Silman had pulled a pistol on him.  Officers responded to the residence and found Silman inside and placed him under arrest.  Officers searched the car that Silman had driven to the residence and located a loaded 9mm pistol under the driver’s seat. 
Silman had previously been convicted of the felonies of stealing, knowingly burning, tampering in the first degree, resisting arrest, assault and possession of a controlled substance.  As a convicted felon, Silman was prohibited from possessing firearms. 

The case was investigated by the Ellsinore Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Larry H. Ferrell handled the prosecution for the Government.

St. Louis, MO – ELAINE LEWIS was sentenced to 27 months in prison for embezzling more than $300,000 from a church checking account, between 2009 and August 2013.  In addition to the prison sentence, she was also ordered to pay restitution of more than $303,000.

According to court documents, Elaine Lewis worked as a bookkeeper for the Lutheran Church of the Resurrection, located in St. Louis County, Missouri.  Between 2009 and August 2013, Lewis used a variety of schemes to embezzle more than $300,000 from the Church’s bank account at Bank of America.  Most of the funds were transferred and deposited into a Commerce Bank account associated with her family’s business -- Advanced Lock & Key, Inc. -- which was operated out her residence in Fenton, Missouri.  

Lewis, Fenton, Missouri, pled guilty in December to one felony count of mail fraud. He appeared today for sentencing before United States District Judge Rodney W. Sippel. 

This case was investigated by the United States Postal Inspection Service and the Sunset Hills, Missouri, Police Department.  Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney’s Office.

St. Louis, MO – The United States Attorney's Office announced today that QUENTEN T. MARTIN of Dexter, Missouri, was sentenced today to 57 months for 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. 

On May 16, 2013, officers responded to the Dexter Hospital in response to a citizen’s report that Martin was outside the hospital and in possession of a firearm.  The officers located Martin and observed a .38 caliber Smith & Wesson revolver on the ground near him.  Martin was arrested and admitted to the officers that he had thrown the gun down when he saw the officers.

Martin is a previously convicted felon and is prohibited from possessing firearms.

The case was investigated by the Dexter Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Larry H. Ferrell handled the prosecution for the Government.

St. Louis, MO – CARMEN A. FLUKER, a/k/a Carmen Simmons a/k/a Carmen Lacy a/k/a “Lucious,” was indicted for her alleged promotion of prostitution between May 2011 and April 2014. 

Fluker, Bel-Ridge, Missouri, will appear in federal court today for her initial appearance.

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 the Federal Bureau of Investigation and the St. Louis County Police Department’s Special Investigations Unit. 

St. Louis, MO – WILLIAM BOOZER, a Boeing sub-contractor, pled guilty to wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts during November 2009 through February 2013.

Globe Dynamics International, Inc., Santa Ana, California, is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components.  Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts.  William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.

According to Boozer’s plea agreement, between November 2009 and February 2013, Boozer requested the Procurement Officer for Boeing, Deon Anderson, provide him with non-public competitor bid information and historical price information in connection with Boeing military aircraft part purchase order requests for quotes.  They communicated by telephone and e-mail between California and St. Louis in code on a regular basis, Boozer frequently requesting “Isle 5," a coded reference to a “price check on aisle 5," understood by Anderson to be a request for historical price information and competitor bid information.  Anderson gave the information to Boozer to be used in preparing and submitting bids on behalf of Globe Dynamics in response to approximately sixteen different Boeing requests for quotes relative to those various purchase orders, in exchange for cash payments. Of the sixteen bids, Globe Dynamics was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $1,500,000. The net benefit to Globe Dynamics on those seven purchase orders was approximately $116,339

Boozer, Hacienda Heights,CA, pled guilty to one felony count of wire fraud before United States District Judge Henry Autrey.  Sentencing has been set for August 15, 2014.

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

The following co-defendants were indicted on related charges and are facing trial:

• DEON ANDERSON, St. Louis, Missouri
• JEFFREY LAVELLE, Mukilteo, Washington
• ROBERT DIAZ, JR., Alta Loma, California

This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service Criminal Investigation.  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.  The remaining defendants are presumed to be innocent unless and until proven guilty.

St. Louis, MO – MICHAEL ENGLER was sentenced to 60 months in prison for using interstate facilities to entice a minor on Craigslist. But that minor was an undercover officer working with the FBI’s Crimes Against Children Task Force.

According to court documents, in October 2013, an undercover officer posing as an 18-year-old posted a "male looking for a male" ad on Craigslist and Engler responded. When the undercover officer told Engler he was "14 years old," Engler still wanted to meet the child. When the "14-year-old" expressed hesitation, Engler told him he knew about boys experimenting and told him he was in a Boy Scouts "Venturing Program" for kids aged 14 – 20.  On October 15, Engler agreed to meet with the officer posing as the 14-year-old boy saying he would teach him about oral sex. Engler was arrested on October 16, 2013, when he showed up at the designated meeting spot behind an ice rink on Brentwood Boulevard.

Engler, St. Charles, Missouri, pled guilty in January to one felony count of using interstate facilities to transmit information about a minor with intent to engage in sexual activity. He appeared today for sentencing before United States District Judge Henry Autrey.

This case was investigated by the St. Louis County Police Department in conjunction with the Federal Bureau of Investigation, the United States Secret Service and the St. Charles County Cybercrime Unit.

St. Louis, MO – EBRAHEEM MAKI NAIF, St. Louis, Missouri, pled guilty Monday to food stamp fraud. 

According to court documents, from January 2008 through May 2012, Naif, doing business as Abes Gravois Discount, also known as Gravois Discount Smokes, redeemed approximately $1,903,402 in food stamp benefits and received the same in federal appropriated money as reimbursement for the food stamp sales.  In 2011, Naif redeemed $690,198 in food stamp transactions.  During that same time period, Naif reported to the City of St. Louis the cost of the goods he sold in 2011 was $25,750 and that he received $80,800 in gross receipts for the sale of those goods. In his plea, Naif admitted that he conducted illegal food stamp transactions and allowed customers to purchase merchandise such as cigarettes, cologne, calling cards, as well as receiving cash back for food stamp sales. Naif admitted that due to his illegal food stamp sales he caused losses of at least $609,398 in 2011. Naif also agreed to forfeit $30,765 and a vehicle seized from him during the investigation.

Naif pled guilty to one felony count of food stamp fraud before United States District Judge Rodney Sippel.  Sentencing has been set for August 11, 2014. 

Food stamp fraud 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 case was investigated by the U.S. Department of Agriculture, the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.  Assistant United States Attorney Matthew Drake is handling the case for the U.S. Attorney's Office.

St. Louis, MO – DAVID SHEN was indicted on charges involving unauthorized access to protected financial information. The indictment was returned April 23, but remained sealed until Mr. Shen surrendered to authorities earlier today.  

According to the indictment, Shen had been employed with the Washington University Investment Management Company.  In October 2011, Shen resigned from his employment in lieu of termination.  The indictment alleges that after he left Washington University, Shen downloaded protected and sensitive financial information without authorization, and he attempted to gain access to additional sources of information.

Shen, St. Louis, Missouri, was indicted by a federal grand jury on two felony counts of computer fraud and one felony count of wire fraud. 

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

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

St. Louis, MO – TINA KUEHL pled guilty yesterday to bank fraud charges involving her fraudulent statements involving payment of a bank loan. In a separate unrelated case, she and her company, Better Way Home Care, pled guilty to multiple healthcare fraud charges. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.

According to court documents regarding the bank fraud charges, in December 2010 Kuehl’s mother obtained a $305,000 property loan from the Community Bank of Owensville, MO, a branch of the Maries County Bank.  Both Kuehl and her mother are listed on the deed of trust for the property.  On many occasions, they did not make timely payments on the loan and in July 2013, Maries Bank foreclosed on the property. After the foreclosure, Kuehl devised a scheme to defraud Maries Bank by submitting fraudulent checks as proof that she had made loan payments to the bank. On six occasions, she changed the payee on copies of unrelated cancelled checks so that it would appear that she had made loan payments to Community Bank of Owensville. She continued the fraud by claiming to have made cash payments to a bank employee on two occasions. The bank employee was on sick leave on the day Kuehl claimed she made the first $4,000 cash payment to the employee at the bank. Kuehl claimed that she made a second cash payment of $6,900 to a bank employee at a truck stop.  Finally, Kuehl retained attorneys to represent her after the foreclosure, and falsely told them she had made payments by checks and cash, which the bank had not credited to her loan account. 

According to court documents regarding the healthcare fraud charges, Better Way was a home health care agency located in Ellisville, Missouri.  Tina Kuehl was the owner, president and administrator of Better Way and was responsible for the day-to-day operations. Medicare pays home health agencies for 60-day episodes of care. Medicare makes two payments to the home health care agencies, the first before the service is provided based on the patient’s anticipated need for services and a second payment at the end of the 60-day episode of care based on the actual number of services provided.

Kuehl has no medical or health care education, training or experience, which would qualify her to assess or evaluate patients or determine their care needs.  Prior to opening Better Way, she worked in the cosmetology field.  Better Way hired nurses and contracted with therapists to assess and evaluate patients and to determine the patients’ needs for therapy services. Better Way staff recorded this information on the Outcome and Assessment Information Set form (OASIS).

To increase the reimbursement that Better Way would receive, Kuehl directed Better Way nurses and other employees to make false statements on the OASIS forms and the reimbursement claim forms. At Kuehl’s direction, the staff increased the number of therapy visits, although Kuehl knew the patients did not need and had not received the therapy; falsified the diagnosis codes; and exaggerated the patients’ conditions and the reasons the patients were receiving home health care services from Better Way. When some employees refused to increase the number of therapy visits, Kuehl personally increased the number of visits.  In some instances the patient had received no therapy at all.

Kuehl, Ballwin, Missouri, pled guilty to one felony count of bank fraud, one felony count of healthcare fraud, two counts of making false statements relating to healthcare and one count of making false statements to federal agents.  She appeared before United States District Judge Henry Autrey on Wednesday, April 30. Sentencing has been set for July 28, 2014.

Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; healthcare fraud carries a maximum penalty of ten years prison and/or fines up to $250,000; and each of the other charges carry 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 Office of the Inspector General of the U.S. Department of Health and Human Services, the FBI, and the Missouri Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.

St. Louis, MO – CHRISTIAN OUNANIAN and GINA VOGEL were sentenced to 63 and 42 months in prison, respectively on charges of selling merchandise stolen from Walgreens and CVS drug stores.  In addition to the prison sentences, they were ordered to pay restitution of $1,008,890.

According to court documents, Ounanian owned Xtra Wholesale, located on Southwest Avenue, St. Louis City. Between 2007 and September 2012, Ounanian and Vogel hired people to steal over-the-counter drugs and other items from Walgreens and CVS stores.  The shoplifters were paid for the items and Ounanian and Vogel conspired to resell the items.

Christian Ounanian and Gina Vogel, St. Louis City, pled guilty in December to one felony count of conspiracy to transmit stolen goods and one felony count of interstate transportation of stolen goods.  Christian Ounanian appeared today before United States District Judge Stephen N. Limbaugh, Jr.   Gina Vogel was sentenced in March.

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

St. Louis, MO – BRANDON HARPER, St. Louis, Missouri, pled guilty to one count of credit card fraud in federal court this morning.  With his plea, Harper admitted to charging $11,400 to the credit card account of another person without that person’s knowledge or consent.  Harper purchased prepaid debit cards for himself at the Maplewood Sam’s Club store on March 4, 2013. 

Harper pled guilty to one felony count of credit card fraud before U.S. District Judge John A. Ross.  Sentencing has been set for July 31, 2014.

He now faces a maximum sentence of fifteen years in prison, and/or a fine of up to $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. 

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

St. Louis, MO – RYAN THAYER STEPHENS, Fenton, Missouri, was indicted for his alleged transportation and possession of child pornography.  He appeared in federal court earlier today.

According to the indictment, between January and October 2013, Stephens transported a thumb drive containing child pornography from Missouri to Arizona.  The indictment states that he possessed child pornography between January 2010 and October 2013, and that he has a prior military conviction for Possession of Child Pornography. 

If convicted, transportation of child pornography carries a penalty range of 15 to 30 years in prison; each count of possession of child pornography carries a penalty range of 10 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 United States Postal Inspection Service, St Louis County Special Investigations Unit, Internet Crimes Against Children Task Force and Scottsdale, AZ police department. Assistant United States Attorney Erin Granger is handling the case for the U.S. Attorney's Office.

St. Louis, MO – RYAN THAYER STEPHENS, Fenton, Missouri, was indicted for his alleged transportation and possession of child pornography.  He appeared in federal court earlier today.

According to the indictment, between January and October 2013, Stephens transported a thumb drive containing child pornography from Missouri to Arizona.  The indictment states that he possessed child pornography between January 2010 and October 2013, and that he has a prior military conviction for Possession of Child Pornography. 

If convicted, transportation of child pornography carries a penalty range of 15 to 30 years in prison; each count of possession of child pornography carries a penalty range of 10 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 United States Postal Inspection Service, St Louis County Special Investigations Unit, Internet Crimes Against Children Task Force and Scottsdale, AZ police department. Assistant United States Attorney Erin Granger is handling the case for the U.S. Attorney's Office.

St. Louis, MO – ANTHONY DAVIS, president of Mail Handlers Local 314, was indicted for his alleged embezzlement of approximately $40,660 of union funds.

Davis, O’Fallon, IL, was indicted by a federal grand jury April 23, on one count of embezzlement of Labor Union funds.  He appeared in federal court Monday afternoon, April 28.

If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $10,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the U.S. Department of Labor-Office of Inspector General and Office of Labor-Management Standards.  Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.

St. Louis, MO – CHERYL ANN WHITE pled guilty to conspiring to create and submit numerous false documents related to Southeast Missouri Health Network, Inc. to federal agencies from 2004 to 2013.

According to court documents, Southeast Missouri Health Network, Inc. (SEMO), is a non-profit, federally qualified health center (FQHC), which provides health services in six counties in southeast Missouri.  SEMO had administrative offices and medical, dental and fitness centers in Benton, Bernie, Kennett, Matthews, New Madrid, Portageville, Senath and Sikeston, Missouri.

White was the chief executive officer of SEMO and a non-voting member of the board of directors until December 2013.  Her duties included preparing or supervising the preparation of applications for operational and construction grants to be submitted to the United States Department of Health and Human Services (HHS), administering the grants and insuring that the grant funds were expended as required by the grants and preparing and submitting required reports to HHS and other regulatory agencies.

With her plea, White admitted that SEMO submitted annual grant reports for 2008 through 2012 and as many as 40 grant applications, which contained false information, including information about the number of patients needing services and the number of services provided by SEMO. White also admitted to using SEMO funds to pay for a roof on a building she owned; selling another building and a trailer to SEMO while concealing her ownership; using SEMO funds to purchase personal gifts for a relative and some of her co-conspirators; and issuing checks to SEMO employees, who then gave the cash to her. White also admitted to giving information to a co-conspirator, who was then awarded, contrary to federal regulations, the contract to construct the clinic in Bernie, Missouri; repeatedly awarding contracts to the same co-conspirator although seven SEMO buildings he constructed or renovated had leaking roofs or cracked slabs; and receiving payments from the co-conspirator, later disguised as a loan. White also admitted to falsely certifying that an engineering company had determined the Bernie clinic was constructed in compliance with the grant requirements; falsely certifying that SEMO spent $110,000 for two floor–mounted x-ray machines and $40,000 for a digital imaging system, when the equipment was never purchased.

White, New Madrid, Missouri, pled guilty to one felony count of conspiracy to submit false documents before United States District Judge Carol E. Jackson Monday, in St. Louis. Sentencing has been set for July 30, 2014.

She now faces 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 Office of the Inspector General, Office of Investigations, and the Office of Audit of the U.S. Health and Human Services and the FBI. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.

St. Louis, MO – RICHARD GOLDMAN, of Chesterfield, Missouri, was indicted on charges of health care fraud and aggravated identity theft.  According to the indictment, Goldman devised and executed a fraud scheme by both dispensing pain medicine without a doctor’s prescription for his own use or by diverting pain medicine prescribed for patients over the last three years.  Goldman worked as a nurse at the John Cochran Medical Center in St. Louis, which is a facility of the United States Department of Veterans Affairs. 

Goldman was indicted by a federal grand jury late Wednesday on one felony count of health care fraud and two felony counts of aggravated identity theft for using patients’ names and information without authority in furtherance of the fraud. 

The health care fraud charge carries a maximum term of imprisonment of twenty years and a fine of $250,000 or both.  The aggravated identity theft charges are punishable by two years, which must be imposed consecutively to any term of imprisonment imposed for the health care fraud.  Also, restitution to the veterans’ health care plan is mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the VA Police and the U.S. Department of Veterans Affairs-Office of the Inspector General.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

St. Louis, MO – EDWARD JONES (an individual not connected with the company Edward Jones) was indicted on multiple fraud charges involving his alleged scheme to use stolen identities to obtain federal tax refunds.

According to the indictment, between February 2009 and April 2012, Jones devised a scheme to defraud the Internal Revenue Service and financial institutions by enticing them to issue electronic tax refunds and prepaid debit cards in the identities of others.  Jones represented himself as a federal income tax preparer and state property tax credit preparer.  In that role, Jones obtained the names, birth dates, and social security numbers of individuals who desired him to prepare and electronically file federal income tax returns or state property tax credit forms.  In order to maximize the refunds, Jones fraudulently claimed that the tax filers were self-employed individuals with unsubstantiated business deductions and entitled to earned income credit as a result of the misrepresentation that the tax filers had dependents.  As a result of the misrepresentations, the tax returns prepared by defendant resulted in the fraudulent payment of substantial tax refunds.  Furthermore, Jones misdirected some of the fraudulently obtained tax returns from the tax filers to himself by instructing the Internal Revenue Service to electronically deposit the tax refunds into prepaid debit card accounts he controlled. 

 "The IRS has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.   

Jones, St. Louis, Missouri, was indicted by a federal grand jury on two felony counts of mail fraud, two felony counts of making false claims and two felony counts of aggravated identity theft. The indictment was returned April 9. He appeared in federal court earlier today.

If convicted, each count of mail fraud carries a maximum penalty of 20 years in prison; each false claims count carries five years in prison; aggravated identity theft carries a mandatory two-year prison term; all with 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 Internal Revenue Service Criminal Investigation. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney's Office.

St. Louis, MO – BRALAND NORMAN pled guilty to charges involving the December 2013 shooting on Delmar Avenue in St. Louis.

According to the facts filed with the court, on December 29, 2013, Norman was the passenger in a vehicle headed southbound on Skinker but stopped at a red light at Delmar.  As his vehicle was stopped, a blue SUV came up behind it and an individual got out and fired numerous rounds into Norman’s vehicle.  Norman was shot in his back and the driver, Allie Harper, was shot numerous times.  The shooter got back into the SUV, which then left the scene.  Harper then drove his vehicle through the intersection and proceeded to run into a vehicle headed westbound on Delmar. Harper remained in the car but Norman climbed out of the vehicle through the rear window, which had been shot out, and took his 9mm Semi-automatic pistol with 27 rounds in the magazine.  Norman ran from the scene eastbound on Delmar, discarded the firearm under a vehicle which was parked right outside of the Moonrise Hotel, entered the hotel and went into the men’s room.  After trying to clean up a bit as he was bleeding, he left the restroom and convinced the valet that he left something in his car, which the valet had just parked for another patron.  The valet gave Norman the keys and without permission of the owner, Norman left the parking lot with the vehicle.  The stolen vehicle was recovered on January 25, 2014. 

With his plea Norman admitted that he was a previously convicted of a felon, and as such is forbidden by law to own or possess a firearm.

Norman, St. Louis City, pled guilty to one felony count of being a felon in possession of a firearm before United States District Judge Catherine D. Perry.  Sentencing has been set for July 2014.

He now faces 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 case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.

St. Louis, MO – JAMES T. MAHONEY pled guilty to failing to file tax returns.

According to court documents, Mahoney was an accountant and had been preparing tax returns since 1987. He became self-employed in 1997 and originally ran his business from his residence in Kirkwood, Missouri. Mahoney provided professional tax preparation services and prepared tax returns for individual and business entities.

Mahoney earned a substantial income for the tax years of 2007, 2008 and 2009. As a result of that income he owed a total tax of more than $180,000.  Mahoney admitted with his plea that he purposely failed to file income tax returns for those tax years, and has not paid his taxes for those years.

"With the April 15 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same," said Sybil Smith, IRS Criminal Investigation Special Agent in Charge of the St. Louis Field Office.

Mahoney, Kirkwood, MO, pled guilty to one count of failing to file tax returns before United States Magistrate Judge Terry I. Adelman.  Sentencing has been set for July 9, 2014.

He now faces a maximum penalty of one year in prison and/or fines up to $25,000.  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 Howard Marcus is handling the case for the U.S. Attorney's Office.

St. Louis, MO – ROBERT HENNINGS was sentenced to 15 years in prison for illegal possession of a firearm.  Hennings was sentenced as an Armed Career Criminal under 18 U.S.C. Section 924(e).  

According to court documents, on April 14, 2013, St. Louis Metropolitan Police officers received a 911 call from a man reporting that his mother's neighbor was threatening his mother with a handgun.  Officers arrived at the scene where they found the victim, who informed officers that Hennings pointed a handgun at her.  While officers were still at the apartment, Hennings returned and was arrested. A search of the area revealed Hennings' coat under a bush in the front yard of the apartment building with a loaded semi-automatic pistol in the coat pocket. They also found a second magazine loaded with six rounds.  The victim identified Hennings' coat and the pistol.  A review of Hennings' criminal history revealed that he previously was convicted of multiple violent felonies, and as a convicted felon is forbidden by law to own or possess firearms.

Hennings, St. Louis, Missouri, pled guilty in January to one felony count of being a felon in possession of a firearm. He appeared today for sentencing before United States District Judge Carol E. Jackson. 

This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Cristian Stevens is handling the case for the U.S. Attorney's Office.

St. Louis, MO – Two area businessmen admitted to committing bank fraud against Excel Bank, which failed in 2012, after receiving $4,000,000 in capital from the Treasury Department through the Troubled Asset Relief Program (TARP).

According to the plea agreements, James Crews and Michael Hilbert admitted to making false statements to Excel Bank with respect to escrow funds or "fix funds" set aside for repairs to rental homes financed through the bank.  In reliance on Crews and Hilberts’ claims that work had purportedly been done on the rental properties, the bank disbursed the "fix funds" which Crews and Hilbert used for other purposes.  Soon after the funds were disbursed in 2010, the loan went into default.

JAMES CREWS, Wentzville; and MICHAEL HILBERT, St. Charles; appeared before U.S. District Court Judge Carol E. Jackson today and were released on their bonds until sentencing, which is scheduled for July 10, 2014.

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

This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.

St. Louis, MO - MICHAEL KITCHEN, St. Peters, MO, was sentenced to 24 months on federal fraud charges for conducting an investment fraud scheme during 2008 and 2009. 

According to court documents, Kitchen marketed a "verification of funds" financial opportunity to a number of investors and took in approximately $500,000.  Kitchen told investors' their money was safe and, if placed in a verification of funds transaction, would earn more than 1000% annualized return.  However, Kitchen failed to protect or place investors' funds.  To the contrary, Kitchen simply spent investors' money on business and personal expenses over several years. 

Kitchen pled guilty in October to one felony count of wire fraud for devising this fraud scheme and two counts of money laundering for using its proceeds to purchase two automobiles.  He appeared today for sentencing before United States District Judge Carol E. Jackson. 

This case was investigated by the U.S. Postal Inspection Service and the FBI in cooperation for the Office of Securities Enforcement - Missouri Secretary of State's Office which is currently prosecuting a civil enforcement action against Kitchen.  Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.                        

St. Louis, MO – ANDREW MABERRY, O’Fallon, IL, who the FBI referred to as the I-55 Bandit, was sentenced to 60 months in prison on bank robbery charges, including the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri.  He entered his guilty plea last December and was sentenced today in St. Louis by United States District Judge Catherine D. Perry.

According to court documents, on July 2, 2013, Maberry robbed the Commerce Bank in Arnold, Missouri.  He also admitted with his plea agreement to nine other robberies in five states: May 15, 2013, US Bank in Crystal City, Missouri; May 21, 2013, First State Community Bank in Cape Girardeau, Missouri; May 6, 2013, Scott Credit Union in Edwardsville, Illinois; June 5, 2013, Harford Bank in Bel Air, Maryland; June 9, 2013, TD Bank located in Essex, Maryland;  July 19, 2013, Wells Fargo Bank in Bel Air, Maryland; July 24, 2013, Susquehanna Bank in Ocean City, Maryland; July 30, 2013, Huntington National Bank in Hurricane, West Virginia; and August 14, 2013, Bank of Jackson in Jackson, Tennessee.  On September 10, 2013, a multi-state press release was issued, which included bank security camera photographs of the robber who had been dubbed the "I-55 Bandit." The FBI here and in other districts received numerous phone calls from individuals stating that they know Andrew Maberry. On the same date, FBI in St. Louis was contacted and told that the I-55 Bandit wanted to turn himself in, and on September 11, 2013, Andrew Caleb Maberry turned himself in to the FBI in St. Louis. 

This case was investigated by the Federal Bureau of Investigation with assistance from multiple law enforcement agencies from several states. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.

St. Louis, MO – TORRANCE COTTON was convicted late Thursday of charges involving a conspiracy to distribute large amounts of cocaine in the St. Louis area.

Testimony at trial revealed that beginning in late summer 2012, Torrance L. Cotton began supplying cocaine to co-defendant David Frazier, who in turn supplied it to co-defendant Jeremy Poe.  According to the testimony, the exchanges of drugs and money took place at a business located on South Broadway in St. Louis where both Torrance Cotton and David Frazier were employees.  On January 11, 2013, co-defendant Jeremy Poe was arrested after agreeing to sell a kilogram of cocaine to a government informant.   Subsequent search warrants at addresses associated with Jeremy Poe yielded an additional 1.5 kilograms of cocaine, along with a blender, scale, cutting agent and a press.  On January 18, 2013, agents seized a kilogram of cocaine from co-defendant David Frazier’s kitchen.  Torrance Cotton’s fingerprints were later located on the packaging of that kilogram of cocaine.

 Cotton, Florissant, was convicted after a four-day trial before United States District Judge John A. Ross.  Sentencing has been set for June 2014.

Ten co-defendants have entered guilty pleas to related charges, have been sentenced or are awaiting sentencing.

Cotton now faces a penalty range of ten years 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.

St. Louis, MO – BEVERLY SUSAN RENE SMITH was indicted by a federal grand jury on charges involving her alleged theft of approximately $176,000 from Million-Taylor Funeral Home.  These funds were intended to cover customer’s funeral expenses.

According to the indictment, Smith was hired by the original owner of the Million-Taylor Funeral Home (MTFH) in Moberly.  James Taylor, Sr. hired Smith in 2001 as the office manager, a job she held from 2001 to June 2012.  Her position included payroll expenses and expenses to vendors for the costs of funerals.  She also received payment for funerals, which she recorded in a financial ledger.  Additionally, she was required to report all of MTHF’s financial transactions to their accounting firm, Federated Funeral Directors of America (Federated). Smith also had access to MTHF’s banking, general fund and escrow accounts. 

To pay for funeral expenses of a client, MTHF first used money from its general operating fund to cover these expenses.  Then Smith was supposed to recoup payment for the funeral expenses from the representatives or family members of the deceased, from the life insurance of the deceased and/or from pre-needs insurance accounts of the deceased.  When the payments were received, Smith was to deposit them back into the general fund.  If she was not able to recoup full payment for funeral expenses of a client, she reported this information to Federated and informed them that the account was a bad account and that they should write it off as no further effort would be made to recoup payment for these expenses. This way she was able to conceal that she had stolen some client payments made for funeral expenses, which she deposited into the escrow account.  

While James Taylor, Sr. operated MTHF, he allowed customers to pay money for their expected funeral expenses before they died.  MTHF deposited this money into MTHF’s escrow account.  He and Smith were the only employees who had access to the escrow account.  The indictment alleges that after James Taylor, Sr. died in 2006, Smith concealed the existence of the escrow account from other MTHF employees. On several occasions Smith took the payments that were sent to MTHF for funerals, and instead of depositing them into the general fund, she deposited the funds into the escrow account. Smith was able to withdraw funds from the escrow account undetected to use for her personal use, including the purchase of clothing and jewelry.  She hid the withdrawals by manipulating the financial records of MTHF.

Smith, Higbee, Missouri, was indicted by a federal grand jury on one felony count of wire fraud last Thursday, March 27.  She appeared earlier today in federal court in St. Louis.

Additionally, upon a finding of guilt, Smith will be subject to a forfeiture allegation, which will require the forfeiture of all money and property derived from the illegal activity. 

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.

The case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol.  Assistant United States Attorney Anthony Franks 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 – LIEUTENANT PARRISH SWANSON and OFFICER RAYMOND STEPHENS are charged with conspiracy to distribute and attempted distribution of heroin.

According to the indictment, during March 2014, Swanson and Stephens agreed to assist an associate, a suspected drug dealer, rob or what is more commonly referred to as "rip off," a drug courier of an amount of heroin within the City of Hillsdale.  The associate agreed to pay Swanson and Stephens cash for their assistance in this "rip off."  On March 20, 2014, Stephens, while on duty as a Hillsdale police officer, approached the drug courier and robbed him of approximately four ounces of suspected heroin.  He later met with the associate and gave him the heroin in exchange for $900 cash.  Stephens then gave Swanson $200 of the $900 per their previous agreement. 

Swanson, St. Louis, and Stevens, St. Charles, were each indicted by a federal grand jury Thursday on one felony count each of conspiracy to distribute heroin and attempt to distribute heroin.  They were arrested by FBI agents this morning.

If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $1 million.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Federal Bureau of Investigation and the St. Louis County Police Department.  Assistant United States Attorneys Hal Goldsmith and John Bodenhausen are handling the case for the U.S. Attorney's Office.

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

St. Louis, MO – THOMAS GREG MARTIN was sentenced to six months of home confinement, 120 hours of community service and three years of probation for receiving misbranded Botox® from a foreign, unlicensed drug wholesaler, some of which had counterfeit exterior packaging.  Additionally, as part of his earlier plea, he agreed to the forfeiture of $32,000.

According to court documents, Martin operated Aestheticare LLC, a medical clinic which provided assorted cosmetic procedures to patients in St. Louis County, Missouri.  In March 2010, Martin received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including “Botox (Turkish)” for $344.99 a vial.  During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial.  From March 2010 through September 2012, Martin made over fifty separate purchases of these drugs from the unlicensed drug wholesaler.  Ultimately, Martin and others provided the illegal drugs to the clinic’s patients without informing them of the source of the drugs.  The U.S. Food and Drug Administration has recently issued a public safety alert regarding misbranded Botox®, found on the agency’s website at:  http://www.fda.gov/drugs/drugsafety/ucm349503.htm

"Foreign-made prescription drugs that do not meet FDA standards for safety and effectiveness place all consumers at risk," said Patrick J. Holland, Special Agent in Charge of FDA’s Office of Criminal Investigations, Kansas City Field Office, "FDA's Office of Criminal Investigations will continue to protect the public's health by guarding against these illegal drugs."

Martin, of St. Louis, pled guilty last December to one felony charge of receiving misbranded drugs. He appeared today for sentencing before United States District Judge Rodney Sippel. 

This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations.

St. Louis, MO – JONATHAN COWDEN was sentenced today to fifteen months of imprisonment resulting from his conviction for hacking a website associated with an Israeli-based business.  Cowden was also ordered to pay restitution to the victims of his hacking crimes. 

The hacking charge against Cowden resulted from a series of computer intrusions Cowden executed between November 2011 and January 2012.  Cowden’s attacks typically looked for vulnerabilities in websites that he could exploit, which allowed him to gain unauthorized access to data and information which he then posted on-line. 

Jonathan Cowden, formerly of St. Louis but currently of San Diego, California, pled guilty last August to one felony count of computer fraud, in violation of 18 U.S.C. § 1030. He appeared today for sentencing before United States District Judge Audrey G. Fleissig. 

This case was investigated by the Federal Bureau of Investigation, the Regional Computer Crimes Education and Enforcement Group and the St. Louis Metropolitan Police Department.  Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney’s Office.