Eastern District of Missouri

St. Louis, MO – ELIJAH BOYKINS, St. Louis, pled guilty to possessing 28 grams of heroin, which was packaged for sale at his home on February 13, 2014.  The drugs were discovered during the execution of a search warrant by the St. Louis Police Department in the City of St. Louis.   In addition to the drugs, Boykins was in possession of $3,381 in cash. 

Boykins admitted to possession with the intent to distribute heroin before Judge Henry E. Autrey in U.S. District Court.  He faces up to 20 years imprisonment and a fine of up to $1,000,000 on the charge.

Additionally, Boykins was on federal supervised release for a 2007 gun offense and violated his supervision by the commission of the new crime.  He faces additional imprisonment as a result of his supervised release violation.

Judge Autrey deferred sentencing on both matters until June 23, 2014.  

This case was investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.

St. Louis, MO – These five New York residents traveled from New York to St. Louis returning stolen merchandise to various retail stores using counterfeit driver’s licenses and receipts.

According to court documents, on November 29, 2012, Maryland Heights police officers conducted a traffic stop of a vehicle being driven by Ishaan Davis.  A subsequent search revealed Toshiba laptop computers, a Star TSP 100 Future Print receipt printer, document making card stock, counterfeit State of Florida and New York driver's licenses in Davis’ name and the names of others, and assorted clothing bearing sales tags.  Further investigation revealed two rooms in which Davis, Shonta V. Simpson and William Randall Estes were registered.  In addition to items similar to those found in Davis’ car, in the hotel rooms, the officers found boxes of additional clothing with tags, which had been mailed from Leo Lewis in New York to Davis in St. Louis, as well as receipts showing wire transfers of money from Davis to Lewis and Ingrid Millsaps.   

Through his plea in November, Davis admitted that he utilized the equipment and the laminated card stock to produce counterfeit drivers’ licenses and merchant receipts so that Simpson and Estes could return stolen merchandise for cash in states including Missouri, Pennsylvania, Indiana, Ohio and Illinois.  Thirteen different driver's licenses for various states were found bearing the photographs of Simpson, Estes and others.  Ann Taylor, The Loft stores, and The Gap were among the stores targeted by the counterfeit receipt scheme.  Simpson had been recruited by Davis and Leo Lewis recruited Estes to participate in the fraudulent scheme.  Estes received a daily rate for his participation and Simpson was promised a percentage of the money received when she returned the stolen items. 

The merchandise that was fraudulently returned was stolen by individuals such as co-defendant Ingrid Millsaps from stores located in, and near, the Brooklyn, New York area.  In general, Millsaps was able to steal merchandise valued at $5,000 within two to three days, which she then provided to Davis and others.  On one occasion, in order to comply with a request for merchandise, Millsaps stole clothing and items valued at approximately $60,000 during a two to three week period.  Millsaps also stole receipt tape and proprietorial store information from retailers, such as Ann Taylor, in order to facilitate the fraudulent scheme.  Millsaps and Davis engaged in the criminal activity for approximately 11 years. Lewis admitted participating in the scheme in 2004 and 2012.  Through their pleas, they agreed that a conservative estimate would place the loss as exceeding $400,000. 

            LEO LEWIS, Brooklyn, New York, was sentenced today to 41 months in prison.

The following co-defendants, entered guilty pleas and have been sentenced:

• Ingrid Millsaps, Brooklyn, New York, sentenced to 87 months in prison
• Shonta Simpson, Brooklyn, New York, sentenced to 18 months in prison
• William Estes, Brooklyn, New York, sentenced to 12 months and one day in prison
• Ishaan Davis, Springfield Gardens, New York, sentenced to 87 months prison

The case was investigated by the City of Maryland Heights Police Department and the United States Postal Inspection Service.  Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.

St. Louis, MO – ROBERT POYNTER was indicted for his alleged scheme to assist buyers in obtaining mortgages based on false information.

According to the indictment, Poynter owned and operated branch offices of First Continental Mortgage, America One Finance, LLC and A-1 Closing Services, all located in St. Charles, MO.  The indictment alleges that Poynter caused to be funded a mortgage loan in excess of $100,000 from Crescent Mortgage for the sale of a residence on Michigan Avenue in St. Louis by falsifying HUD-1 settlement documents and diverted the proceeds from the sale of the property back to the buyer.  Poynter then used these funds to finance the borrower’s down payment for the same transaction.  Poynter benefited from the transaction through invoices and brokers fees paid by the closing title company.  Additionally, the indictment states that he also caused to be funded a mortgage loan in excess of $249,000 for the sale of a property on Midland Boulevard, St. Louis, by falsifying the employment information of the buyer.

Poynter, Saint Peters, MO, was indicted by a federal grand jury late Wednesday on one felony count of wire fraud and one felony count of making a false statement.

If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. The false statement charge carries a maximum of 2 years in prison.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Federal Housing Finance Agency-Office of Inspector General and the Department of Housing and Urban Development. 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 - EVELYN SILAS, Florissant, MO, was sentenced to 15 months in prison on 13 counts of tax and fraud charges today by United States District Judge Catherine Perry. 

According to court documents, Silas prepared twenty tax returns for friends and members of her family during the 2009, 2010 and 2011 tax years while employed full-time at the St. Louis Office of the Equal Employment Opportunity Commission (EEOC).  Silas added phony information about educational expenses and business income and losses to obtain tax credits for those taxpayers.  In all, Silas caused more than $90,000 in tax loss.  Silas kept a large percentage of the refunds generated by the fraudulent returns for herself

The case was investigated by IRS-Criminal Investigation with assistance from the EEOC-Office of the Inspector General.  Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.

St. Louis, MO – Kenneth Kreisch was indicted for allegedly failing to pay employment taxes that had been deducted from employee payrolls.

According to the indictment, Kreisch controlled and was part owner of Marble and Granite Worldwide LLC (MGW).  The indictment alleges that after withholding employment taxes from his employees’ paychecks, other than two quarters in 2008, Kreisch made no payments to the IRS, which were due.  During the seven calendar quarters beginning in 2006 through the fourth quarter of 2008, Kreisch failed to account for and pay over approximately $462,501 in employee taxes.

"Business owners who fail to remit withheld employment taxes to the IRS are not only enriching themselves, they are creating financial problems for their employees," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.

KENNETH KREISCH, Lake St. Louis, MO, was indicted by a federal grand jury on seven felony counts of failure to pay over taxes.

If convicted, each count of the indictment 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 IRS-Criminal Investigation. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney's Office.

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

St. Louis, MO – The leader and the final of a 24-defendant, multi-hundred kilogram marijuana trafficking conspiracy ring was sentenced to 30 years in prison this morning by United States District Judge Carol E. Jackson. According to court documents and testimony presented at trial, David Ingram Henderson was the leader of an organization involved in the transportation of more than a ton of bulk marijuana from Arizona to the St. Louis area beginning in the summer of 2006 and continuing to June 2010. 

Henderson devised a system in which he would use members of the conspiracy to drive multiple rental vehicles with license plates from various states back from Arizona. One of these vehicles would be loaded with a large amount of marijuana intended for distribution in the St. Louis area and the other vehicles would travel in tandem with the loaded vehicle to serve as decoys designed to direct law enforcement attention away from the loaded vehicle.  Additionally, Henderson headed another conspiracy that operated indoor marijuana growing operations at various locations in St. Louis City and County.

DAVID INGRAM HENDERSON, Maryland Heights, Missouri, was convicted in November 2013 of one felony count each of conspiracy to distribute and possess with intent to distribute over 1000 kilograms of marijuana; conspiracy to manufacture over 100 plants of marijuana and the manufacture of 100 marijuana plants.

Twenty-three co-defendants previous pleaded guilty to related charges and have been sentenced.

This case was investigated by the Drug Enforcement Administration, U.S. Border Patrol, Nebraska State Patrol, Arizona Department of Safety, Phoenix Police Department, Hall County Nebraska Sheriff’s Department, O’Fallon Police Department and Maryland Heights Police Department. 

St. Louis, MO – BARRY WIMBERLY was sentenced to 57 months in prison, followed by supervised release for life, on charges of transporting five female victims from five states to Missouri and back for prostitution.

According to court documents, Wimberly served as a pimp for numerous women whom he transported between Missouri, Illinois, North Dakota, Minnesota, Georgia and Florida.  Wimberly ran his business out of various locations in Hazelwood, Missouri. 

Wimberly, Hazelwood, Missouri, pled guilty last December to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.

This case was investigated by the Federal Bureau of Investigation, the Kirkwood Police Department and the Maryland Heights Police Department.  Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.

St. Louis, MO – JAMALL BROWN was sentenced to 51 months in prison, followed by supervised release for life, on charges of transporting two female victims from Chicago to Missouri to Colorado and back for prostitution.

According to court documents, in June 2013, St. Louis Metropolitan Police contacted a victim at a local hospital. The victim advised police that Brown had assaulted her and fractured her nose. The victim had initially met Brown in Chicago, Illinois, and advised that Brown was physically assaultive and he directed that she and another female engage in prostitution by advertising on Backpage.com online service.   After spending a few days in Chicago, the defendant transported them to St. Louis where they engaged in acts of prostitution.  After a few days he transported them to Denver, then eventually back to St. Louis. Later in June, the victim told Brown that she wanted to stop prostituting and leave. They began to argue and Brown beat her and later dropped her off at the emergency room.

Brown, Chicago, IL, pled guilty last September to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.

This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the St. Louis Metropolitan and Hazelwood Police Departments.  Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.

St. Louis, MO – PETER GIAMBALVO was indicted on tax charges for allegedly filing false tax returns from 2003-2010.

According to the indictment, Giambalvo was an employee of The Boeing Company.  The indictment alleges that for eight years beginning in 2003 through 2010, Giambalvo claimed zero earnings, when in fact he had earned wages, salaries, tips, etc. of approximately $498,540 for those years.

"Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.

Giambalvo, Hawk Point, MO, was indicted by a federal grand jury on one felony count of interfering with the administration of the Internal Revenue Laws, and eight felony counts of filing false tax returns. The indictment was returned March 5, but remained sealed until the arrest of the defendant earlier today.

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

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

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

St. Louis, MO – St. Charles County attorney JEFFREY WITT was arrested on an indictment charging him with falsifying documents to obtain a line of credit on a St. Louis County home which did not belong to him, as well as aggravated identity theft.

According to the indictment issued by the federal grand jury, during September 2013, Witt submitted a false loan application in the name of an individual identified in the indictment as PW, in order to obtain a $100,000 line of credit secured by the individual's St. Louis-area residence.  The individual home owner was unaware of Witt's loan application.  The indictment alleges that Witt provided an associate with false documentation and identification in PW's name so the associate could impersonate PW at the loan closing.  Together they were able to obtain the $100,000 bank loan credit line.  Witt immediately drew out $60,000 from the credit line, which funds Witt deposited into his law firm bank account and then withdrew for personal purposes. The indictment alleges that 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 loan.

Witt was arrested on the charges Friday, March7, 2014, by FBI Special Agents when he landed at Kennedy International Airport in New York City on an inbound flight from Istanbul, Turkey.  He will have his initial appearance before a Federal Magistrate Judge in Brooklyn, New York, on Saturday, March 8, 2014.

Witt, St. Charles, MO, was indicted by a federal grand jury December 11th on one felony count of bank fraud and one felony count of aggravated identity theft.  The indictment was under seal until the arrest of the defendant Friday evening, March 7, 2014.

If convicted, bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. Each count of aggravated identity theft carries a mandatory two-year prison sentence consecutive to any other term of imprisonment and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.  The United States Attorney’s Office, Eastern District of New York provided cooperation in the arrest of the defendant.

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 – JASON RAUSCHELBACH pled guilty to charges involving his conspiracy to defraud the United States and several banks through his business, The Mortgage Store, Inc., in 2008.

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.

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

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

Finally, 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, pled guilty to one felony count of conspiracy before United States District Judge Henry E. Autrey.   Sentencing has been set for June 2, 2014.

He 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 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 - RICHARD SADDLER owned Omicron Capital LLC, a company in the business of assisting customers in refinancing commercial and real estate loans.

According to court documents and statements made in court at the time of his guilty plea hearing, between Jan. 1, 2010, and March 31, 2013, Saddler accepted roughly $350,000 from at least seven customers based upon his false representations that the money would be used for down payments or appraisals on commercial real estate refinancing. Instead, Saddler actually used the money to pay the mortgage on his home, which was in foreclosure, as well as airline tickets, meals and other personal expenses.

Saddler, St. Louis County, pled guilty to three felony counts of wire fraud before United States District Judge Carol E. Jackson.  Sentencing has been set for May 30, 2014.

Each count of 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. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.

St. Louis, MO - SEAN HOLLAND was sentenced to 14 months in prison involving a wire fraud scheme whereby he embezzled money from a condominium association for which he served as bookkeeper.

Holland worked as a bookkeeper for Maryland House Condominium in St. Louis between 2008 and 2010 and made $64,000 of unauthorized electronic transfers of funds to his personal bank account and concealed the transfers from the management of the association.

Holland, St. Louis, pled guilty in September and appeared today for sentencing before U.S. District Judge Catherine D. Perry.

The case was investigated by the St. Louis Metropolitan Police Department, the U.S. Secret Service and the St. Louis Circuit Attorney’s Office.  Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.

St. Louis, MO – DEMETRIUS NEAL of St Louis County was indicted by a federal grand jury on one felony count of unauthorized use of an access device.

According to the indictment, Neal embezzled more than $30,000 from a CVS store in Maplewood, Missouri, at which he was employed in 2013 and 2014.  Neal submitted phony returns in the store’s terminals and either took cash or directed credits to credit card and bank accounts he controlled.  An internal investigation revealed the loss.

If convicted, this charge carries a maximum penalty of ten 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 CVS loss prevention department in cooperation with the Maplewood Police Department.  Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

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

St. Louis, MO – REGINALD WILLIAMS was convicted of multiple charges involving the interstate transportation of two minors with the intent to engage in prostitution.  The four-day trial was held before United States District Judge Jean C. Hamilton.

According to testimony presented at trial, on September 12, 2012, Collinsville, Illinois, police received a report regarding a missing 16-year-old girl who was being forced to work as a prostitute by one or several adult males. The person reporting the information was familiar with online postings on the website, www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex.   The telephone number associated with the advertisement was recognized to be used by "Reggie," who was later identified as defendant Reginald Williams. Detectives reviewed the on-line advertisement, which contained sexually suggestive language and listed the poster’s age to be 20 years old.  However, Illinois police were able to confirm that the girl was born in 1996.

Investigators also learned that a second minor female was believed to be in the 16-year-old’s company at a hotel in St. Louis County. Detectives from Illinois then contacted the St. Louis FBI and the St. Louis County Police Department. 

On September 13, 2012, an undercover detective called the phone number listed in the online advertisement to set up a paid sex "date" with the two girls. When officers arrived at the hotel, they observed a black male, later identified as defendant Reginald Williams, exit the same hotel room where the two minor females were eventually found. Williams was arrested In the parking lot.  When officers went to the room they found both girls, ages 16 and 17.  Thereafter, officers determined that Williams transported the 16-year-old girl to the St. Louis area and Chicago with the intent she engage in prostitution.  Officers also determined that Williams had attempted to recruit the 17-year-old girl and posted her on www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex as well.

Williams, from the Chicago, Illinois area, was convicted of one felony count each of interstate transportation of a minor with the intent to engage in prostitution, sex trafficking a minor, attempted sex trafficking of a minor, possession of a firearm in furtherance of a crime of violence and use of interstate facilities to promote prostitution.  Sentencing has been set for May 30, 2014.

He now faces ten years to life in prison. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

In addition to the Collinsville, Illinois, and St. Louis County police departments, this case was also investigated by the Federal Bureau of Investigation.

St. Louis, MO – BRADLEY FERGUSON, owner of Fenton-based Paymaster Business Solutions, Inc., was indicted late yesterday on mail fraud and money laundering charges involving his alleged failure to remit federal, state and local taxes to the proper taxing authorities that had been deducted from victim client bank accounts.  Ferguson also failed to remit FICA withholding to the IRS on behalf of his business clients.

According to the indictment, from January 2005 through January 2014, Ferguson drafted funds directly from Paymaster business clients’ bank accounts in order to pay their federal, state and local tax liabilities.  However, Paymaster, at Ferguson’s direction, failed to forward the Paymaster business clients’ funds to the taxing authorities in order to pay their tax liabilities then due and owing.  Paymaster drafted in excess of $2,700,000 from Paymaster business clients’ bank accounts to pay client’s federal, state and local tax liabilities, as well as FICA liabilities, for the period July 2013 through December 2013, but were not forwarded to the proper taxing authorities. Additionally, the indictment alleges that Ferguson,as Power of Attorney for Paymaster business clients, was contacted directly by the IRS and questioned as to the failure of the payments of client federal tax liabilities.  Fergusondid not tell his clients about the IRS inquiries.  When clients occasionally learned that Paymaster had not forwarded their funds to the taxing authorities, Ferguson lied to them and told them Paymaster had made the payments. Finally, the indictment states that in December 2013, Ferguson retained the services of a commercial shredding company and directed that the Paymaster business client records be shredded and removed from the Paymaster offices.

Ferguson, Washington, MO, was indicted by a federal grand jury late Wednesday on one felony count of mail fraud and one felony count of money laundering.

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

If convicted, mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum of 5 years.  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, Postal Inspection 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.  Every defendant is presumed to be innocent unless and until proven guilty.                                                      

St. Louis, MO – ADRIAN LEWIS and MELVIN QUINN, both of Charleston, Missouri, were sentenced on separate unrelated indictments for their distribution of heroin in Mississippi County.  They appeared yesterday, February 24th, before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau, MO.  Adrian Lewis was sentenced to seven years in prison. Melvin Quinn received a six-year prison sentence.

             Both cases were developed by a task force of officers with the Drug Enforcement Administration, Missouri Highway Patrol and local authorities working in Charleston during the spring and summer of 2013.  Lewis and Quinn are both repeat federal offenders, having sustained federal drug convictions in 2005 and 2004 respectively.  Both men pled guilty last December to use of a communication facility in furtherance of a drug crime.

            This case is being investigated by the Drug Enforcement Administration and the Missouri Highway Patrol. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.

St. Louis, MO – DR. ERICK FALCONER was sentenced to five months in prison, followed by five months of home confinement, on charges of making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging. Additionally, as part of his plea agreement, Dr. Falconer previously forfeited $20,000 to the Government.

According to court documents, during the summer of 2009, Dr. Falconer received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including "Botox (Turkish)" for $354.99 a vial, listing a 1-800 telephone number and an individual’s "g-mail" address for contact purposes.  The facsimile was sent to his medical practice, The Youthful Body, Inc., in Florissant, MO.  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 August 2009 through February 2013, Dr. Falconer and his corporation made over fifty separate purchases of these counterfeit drugs, which he provided to his patients without informing them of the source of the drugs.  During an interview in February 2013 with special agents of the U.S. Food and Drug Administration ("FDA"), Dr. Falconer told the agents he had only made three purchases of the illegal drugs from this unlicensed foreign wholesaler.  On April 26, 2013, FDA issued a public safety alert regarding "fraudulent versions of Botox found in the United States" with counterfeit exterior cartons.  

Falconer, of St. Louis, Missouri, pled guilty last November to one felony charge of making a false statement. He appeared today for sentencing before United States District Judge Carol E. Jackson. 

"Healthcare professionals who buy medicines outside of the supply chain that FDA oversees jeopardize their patients’ safety," said Special Agent in Charge Patrick J. Holland of FDA’s Office of Criminal Investigations, Kansas City Field Office. "FDA will not hesitate to bring to justice all those who put the public’s health at risk by violating federal law."

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

St. Louis, MO – JILLIAN NICHOLS, a local paralegal, was indicted on 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 is also charged with lying to the FBI about her illegal conduct.
 
According to the indictment, Jillian 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.  There was an assistant prosecuting attorney in St. Louis County assigned to the client’s criminal case. The indictment states that between June and December 2013, Nichols engaged in a scheme to defraud the client by falsely telling him that the prosecutor had solicited a payment of $10,000 in order to give favorable consideration in his pending criminal case. She falsely represented that she had favorable evidence “planted” on the client’s cell phone in order to support his defense. She also allegedly 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 December 10, 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 purportedly bribing the prosecutor or planting evidence on his cellular phone.

Finally, the indictment alleges that Nichols lied repeatedly to the FBI about her involvement in the scheme when interviewed as part of their investigation in December 2013.

Nichols, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of making false statements.  She is expected to appear in federal court today.

If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; making false statements carries 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.

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 – Both men were sentenced involving their operation of a large marijuana distribution network and laundering the proceeds through a Tucson, Arizona, business to avoid reporting requirements. VAN J. SANDERS, JR., of Tucson, AZ, was sentenced to 24 months incarceration. LEON ROBINSON III, of Florissant, MO, was sentenced to 12 months and 1 day.  Both appeared before United States District Judge E. Richard Webber.

According to court documents, Van J. Sanders maintained an account at Bank of America under the name of Ultimate Trainer, LLC.  He was the signatory for the account.  Leon Robinson III deposited money into Sanders' Ultimate Trainer Bank account at various Bank of America branches in the greater St. Louis area by making cash deposits in amounts under the $10,000 reporting requirement.  These monies are proceeds from their marijuana distribution conspiracy from June 2012 to September 2012. The marijuana was transported via U.S. Postal Express Mail parcels.

Van J. Sanders, Jr. of Tucson, AZ, and Leon Robinson III of Florissant, MO, each pled guilty last October to two felony counts of conspiracy to distribute over fifty (50) kilograms of marijuana and conspiracy to structure currency transactions for the purpose of evading the reporting requirements.  Robinson also pled guilty to three felony counts of structuring currency to evade reporting requirements.

This case was investigated by the St. Louis and Tucson offices of the Postal Inspection Service.  Assistant United States Attorney John T Davis handled the case for the U.S. Attorney's Office.

St. Louis, MO – STACEY BROTHERTON, of St. Louis County, pled guilty to embezzling funds from two area schools between 2010 and 2013 today.  She appeared before U.S. District Judge John A. Ross. 

According to the plea agreement, while in the human resources department of Villa Duchesne and Oak Hill School, Brotherton manipulated payroll records to send extra paychecks and paychecks purportedly owed to former employees to bank accounts she controlled.  After leaving that employment, Brotherton worked as a payroll consultant to another St. Louis area school and quickly tried to implement a similar scheme, again directing a phony paycheck to a substitute teacher to her own bank account.  Shortly thereafter, her misconduct was discovered.  In all, Brotherton embezzled approximately $30,000.

Brotherton faces up to 20 years imprisonment and/or a fine up to $250,000 on each count of mail fraud.  Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencing has been set for May 22, 2014.

The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.

St. Louis, MO – JENNIFER WALTER was indicted on multiple tax fraud charges including filing false tax returns, creating false W2 forms and the use of stolen personal information to file for a tax refund.

According to the indictment, in January 2010, Walter filed a false tax return for 2009 and between 2010 and 2011, Walter created fraudulent W-2 forms for people to use for preparation by another local tax return preparer.  The indictment states that for the tax years 2010 and 2011, Walter provided false W-2s, which aided in the filing of approximately 13 false tax returns, claiming approximately $84,727 in false refunds.

Beginning in 2013, while she was employed by Liberty For All Tax Service, in St. Louis, the indictment alleges that she prepared false returns for clients by including fraudulent items and tax credits, such as wage information which allowed her to falsely claim the earned income tax credit and child tax credits for her clients. For the tax year 2012, Walter filed or assisted in filing approximately 18 false tax returns claiming approximately $129,447 in false refunds.

"Dishonest return preparers use a variety of methods to cheat the government," said IRS Criminal Investigation Acting Special Agent in Charge Tanya Brewer.  "Knowingly falsifying documents filed with the IRS is a crime."

Finally, the indictment states that in February 2013, Walter filed a false tax return using someone else’s personal information, and received the $6,134 tax refund due from that return.

Jennifer Walter, St. Louis, MO, was indicted by a federal grand jury on five felony counts of filing false tax returns, one felony count of theft of government funds and one felony count of aggravated identity theft. The indictment was returned on February 5, but remained sealed until the arrest of the defendant earlier today.

If convicted, each count of filing false tax returns carries a maximum penalty of five years in prison and/or fines up to $250,000; theft of government funds carries a maximum of 10 years in prison and/or fines up to $250,000; aggravated identity theft carries a maximum of two years prison and/or fines up to $250,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

 This case was investigated by IRS Criminal Investigation, the Missouri Department of Revenue, Criminal Tax Investigation Bureau and University City Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.

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

St. Louis, MO – SAMUEL GONZALES, Poplar, Bluff, MO, was sentenced to 600 months in prison Thursday afternoon by United States District Judge Carol E. Jackson, in St. Louis.

According to court documents, between January 2011 and January 2013, Gonzales video recorded himself performing sexual acts on a 9-year-old girl.  Also, between January 2011 and January 2013, Gonzales attempted to receive child pornography over his telephone by requesting a 13-year-old girl to send him naked images of herself.

Gonzales pled guilty in November to one felony count each of production and attempted receipt of child pornography. 

The case was investigated by Donya Jackson of the U.S. Attorney’s Office, FBI, Poplar Bluff Police Department and Jefferson County Sheriff’s Department.  Assistant United States Attorney Erin Granger handled the case for the U.S. Attorney’s Office.

St. Louis, MO –  CARY JORDAN pled guilty to fraud charges involving his diversion of almost $500,000 of client funds for his personal use.

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 to invest in other non-related investment opportunities.  

Jordan, formerly of Webster Groves, MO, currently residing in Florida, pled guilty to two felony counts of mail fraud before United States District Judge John A. Ross.  Sentencing has been set for May 15, 2014. 

Mail fraud carries a maximum penalty of 30 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.  Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.

St. Louis, MO –   TINA KUEHL was indicted on bank fraud charges involving her fraudulent statements involving payment of a bank loan.
 
According to the indictment, 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.  Kuehl made the loan payments using checks drawn on her personal bank accounts at several banks, including a business account in the name of Baby Boomers Health, LLC, which Kuehl owned and operated.  On many occasions, they did not make timely payments on the loan and in July 2013, Maries Bank foreclosed on the property.

The indictment alleges that after the foreclosure in July 2013, 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 allegedly 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, the indictment states that 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.  She also gave copies of the fraudulent documents, including the fraudulent checks, to her attorneys who presented the fraudulent documents to the bank.      

Kuehl, of Ballwin, Missouri,, was indicted by a federal grand jury on February on one felony count of bank fraud.  She is expected to appear in federal court today.

If convicted, 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.

In November 2013, Kuehl was indicted by a federal grand jury on five counts of health care fraud and one count of making false statements to federal agents. The trial of these offenses is scheduled for May 5, 2014.

This case was investigated by Health and Human Services Office of Inspector General. Assistant United States Attorney Dorothy McMurtry 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 – SUSAN WINEBARGER was indicted for allegedly embezzling approximately $600,000 from company accounts and falsifying documents to conceal the embezzlement.

 According to the indictment, Winebarger was Chief Financial Officer, then Chief Executive Officer of VNA-TIP of Bridgeton, Missouri.  VNA-TIP provides visiting nurse care, hospice care and related patient care service in Missouri and Illinois.  In this capacity, she ran the day-to-day business and financial operations of VNA-TIP, including reconciling bank statements and having full access to bank checks for the company’s operating and payroll accounts.  Winebarger also directly coordinated payments to the outside Administrator for VNA-TIP’s employee 401(k) plan.  The indictment states that between January 2008 and December 2013, Winebarger embezzled approximately $600,000 from VNA-TIP accounts.  Without company authority, Winebarger issued checks to herself from both the operating account and its payroll account and deposited those checks into her personal bank accounts and used the company debit card to purchase personal items.  In order to conceal her scheme, she made sure she received all the bank account statements, which she altered for submission to VNA-TIP auditors.  She also falsified internal financial reports, including monthly profit and loss statements submitted to the shareholders and board members.  Finally, the indictment alleges that Winebarger failed to remit money withheld from VNA-TIP employees’ paychecks for their individual 401 (K) retirement accounts to the plan administrator so that the cash reserves would be falsely inflated in order that VNA-TIP shareholders, board members and auditors would not be aware of the true financial status of the company and potentially discover her theft and embezzlement.  She also failed to remit state and federal withholding taxes, social security and Medicare funds.   

Winebarger, Highland, IL, was indicted by a federal grand jury on two felony counts of wire fraud. 

In addition to the wire fraud charges, the indictment contains a forfeiture allegation that, if convicted, requires the forfeiture of money and property derived from the criminal activity.

If convicted, 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.   Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.

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

St. Louis, MO –   ANDREUS O'BRYANT, St. Louis, Missouri, was sentenced to 330 months imprisonment for his organization and leadership in a drug conspiracy that required the murder of Jamie Benson of Houston, TX, on April 22, 2011.  In August 2013, O’Bryant pleaded guilty to conspiracy to possess with the intent to distribute over 500 grams of cocaine.  O’Bryant was sentenced today by United States District Court Judge Audrey G. Fleissig after a two-day sentencing hearing.

According to court documents and testimony provided during the sentencing hearing, in early April 2011, O’Bryant recruited multiple individuals, including his co-defendants Scott Compton and Lodgy Jackson, to participate in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis, after luring Benson from Houston to St. Louis.  Compton was recruited by O’Bryant to act as an individual interested in purchasing over 500 grams of cocaine from Benson for an inflated price.  Compton played that role.  In doing so, Compton, along with O’Bryant and Jackson, convinced Mr. Benson that a drug transaction was going to occur when, in reality, O’Bryant, Jackson and others intended to rob Benson of the cocaine and murder him. 

Jackson was brought to St. Louis by O’Bryant for purposes of carrying out the murder in exchange for compensation from O’Bryant.  In the early morning hours of April 22, 2011, O’Bryant drove himself, Benson, Jackson and another individual to a St. Louis alley.  O’Bryant exited the vehicle.  Jackson and Benson sat inside O’Bryant’s vehicle.  Benson was the front seat passenger.  Jackson sat directly behind him.  To facilitate Benson’s murder, Jackson initiated a heated argument with Benson.  As the argument began, Jackson sent a text to O’Bryant notifying O’Bryant that the murder was imminent.  As the argument continued, Jackson mouthed the words “watch this” to another passenger inside O’Bryant’s vehicle.  Jackson then fired one shot into the back of Benson’s head from a firearm Jackson possessed.  That firearm was given to Jackson by O’Bryant prior to the murder.  Jackson, O’Bryant and another abandoned Benson's body in the alley, where it was later discovered by the St. Louis Metropolitan Police Department.  Jackson, O’Bryant and others undertook significant efforts to cover up the conspiracy and destroy evidence of the crime. 

Upon learning of the indictment against him, O’Bryant fled the State of Missouri.  He eluded authorities for almost a year.  A joint task force of officers from St. Louis, Missouri, and Houston, Texas, with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service apprehended O’Bryant in Houston, Texas, and returned him to the Eastern District of Missouri to face the indictment.  O’Bryant is the third of three defendants to be sentenced in this matter.  Compton pleaded guilty for his involvement and has been sentenced to 5 years imprisonment.  Jackson also pleaded guilty and has been sentenced to 33 years imprisonment. 

This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department; the St. Charles County Police Department and the O’Fallon Police Department.

St. Louis, MO - KYLE MILLER, St. Louis, Missouri, admitted to stealing $15,000 in cash from a U.S. Bank facility in Maplewood where he worked in 2013.  Miller pleaded guilty to one count of misappropriation of funds by a bank employee.  He appeared before Judge John A. Ross in federal court in St. Louis this morning. 

According to the plea agreement, Miller stole the cash between April 23, 2013, and July 5, 2013.  He faces up to 30 years imprisonment and a $1,000,000 fine.  Restitution of the stolen funds is also mandatory.  Sentencing has been set for May 8, 2014.

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 – DR. KURT MORGESTER pled guilty to fraudulently obtaining prescriptions for Oxycondone.  According to court documents, on multiple occasions in December 2012 and January 2013, Dr. Morgester wrote and picked up prescriptions for his dental patients.  The patients had no knowledge of these prescriptions. 

Morgester, Fenton, MO, pled guilty to one felony count of possession of a controlled substance by subterfuge before United States District Judge Rodney W. Sippel.  Sentencing has been set for May 8, 2014.

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

This case was investigated by the Drug Enforcement Administration.  Assistant United States Attorney John T Davis is handling the case for the U.S. Attorney's Office.

St. Louis, MO – Five local men and ten out-of-state associates have been arrested on charges involving a conspiracy to distribute large amounts of cocaine and methamphetamine in the St. Louis area and New Mexico, along with money laundering of the proceeds of the illegal activity.

According to the indictment, ALPHONSO EDUARDO GONZALES of Albuquerque, New Mexico, is charged with engaging in a Continuing Criminal Enterprise between 2009 and November 2013.  The indictment alleges that Gonzales committed a series of violations of federal drug statutes by transporting large quantities of cocaine, methamphetamine and marijuana from Albuquerque to other cities, including St. Louis. Fourteen associates are charged on multiple drug conspiracy and money laundering charges as part of the Gonzales criminal enterprise.  

Charged locally are Floyd Huntley, Jr. of St. Ann; Jonathan Arnez Spencer of Ferguson; Orlando James Allen of St. Louis; Dallas Wayne Lane of St. Louis; and David Michael Young of St. Louis.  The defendants were arrested Thursday and are expected to appear in federal court on Monday, February 10.

If convicted, defendant Alphonso Gonzales is subject to a minimum mandatory term of imprisonment of 20 years for the Continuing Criminal Enterprise.  Other charges carry penalties ranging from10 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.

This case was investigated by the Drug Enforcement Administration – St. Louis Division, with the cooperation of the St. Ann Police Department.   

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

St. Louis, MO - THERESA MOORE was sentenced to 44 months in prison and ordered to pay $86,084 restitution to the victims of the crimes.   Moore employed various aliases and claimed to be with law enforcement and the legal profession to induce victims to pay her money by convincing them that she could assist them with various legal matters.  Moore contacted her victims by telephone and made false representations about non-existent legal matters.

According to court documents, in July 2009, Moore met an elderly widower through a telephone dating service.  Soon after making the acquaintance, Moore, and her associates, using various aliases, began contacting him by telephone to inform him he was a victim of identity theft.  Moore intentionally deceived him into believing that he was entitled to restitution and that he had to pay money up front in order to collect the restitution payment.  At other times, Moore intentionally deceived him into believing that he would be receiving money as part of a legal settlement, but that he had to pay money up front in order to collect the settlement. In reliance on Moore's false representations, over the course of about three years the man made numerous payments to Moore totaling in excess of $61,473.

In May 2011, Moore and one of her associates contacted victim J.N. by telephone and told J.N. that there were several warrants out for the arrest of J.N.'s adult daughter, P.N., who had developmental learning disabilities.  Moore stated to J.N. that Moore had paid fines on behalf of P.N. and needed to be reimbursed, when in fact, Moore was not aware of any such arrest warrants and had made no such payments.  Moore enlisted an associate who posed as a police detective in order to lend credibility to her scheme.  J.N. paid Moore in excess of $23,894 as a result of the fraud scheme.

Moore, St. Louis, Missouri, pled guilty last September to four felony counts of wire fraud. She appeared today for sentencing before United States District Judge John A. Ross. 

This case was investigated by the United States Postal Inspection Service, the Hazelwood Police Department, the Clayton Police Department, The St. Louis County Police Department and the Missouri Attorney General’s Office.  Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney’s Office.

St. Louis, MO -St. Louis, MO - CARLA MATHEWS was sentenced to 10 years in prison involving a conspiracy to commit sex trafficking of two area women by force and intimidation.

According to court documents, between 2010 and the October 2012, Carla Mathews and her co-defendant recruited and maintained women, physically assaulted them and forced them to engage in prostitution in the St. Louis metropolitan area.  Mathews took the women to various hotels for commercial sex dates and kept the money generated by the victims for herself.  She confiscated their food-stamp identification (EBT) cards to control them and deprive them of food and drink as a method of control.  Mathews also provided the victims with the drug MDMA and clothing in preparation for the commercial sex dates she arranged for them.

Mathews, Breckenridge Hills, MO, pled guilty last October to conspiracy to commit sex trafficking by force, fraud or coercion. She appeared today for sentencing before United States District Judge Henry Autrey.

Co-defendant Carl Mathews, also of Breckenridge Hills, was sentenced to 10 years in prison in July 2013.

This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Agriculture Office of Investigations and the Breckenridge Hills Police Department. 

St. Louis, MO - DR. KHALED HASSAN, St. Charles County, pled guilty to billing Medicare for "face to face" office visits performed on dates when he was actually traveling outside of the United States.

According to his plea agreement, Dr. Hassan dispensed prescription drugs to a large percentage of his patients, including the drugs Percocet®, Xanax®, Ativan®, Oxycontin® and Oxycodone®.  Since some states and many health care programs limit controlled substance prescriptions to thirty-day supply amounts, his patients often had regular appointments with him roughly every thirty days to renew their prescriptions for these drugs. However, on some occasions, Dr. Hassan’s patient appointments conflicted with his travel schedule.  On three occasions in March 2009, September 2009 and December 2011, Dr. Hassan traveled internationally, leaving his nurse to conduct a number of patient visits in his absence and provide his patients with assorted pre-signed prescriptions for controlled substances.  During these same time frames, Dr. Hassan directed his office staff to bill Medicare for face-to-face office visits. Ultimately, the Drug Enforcement Administration received a number of complaints about Dr. Hassan’s prescribing practices, including a report from the Hazelwood Fire Department in February 2012, that a patient had overdosed and become unconscious in the parking lot of Dr. Hassan’s medical office in Florissant, Missouri.  During a subsequent search of Dr. Hassan’s office, agents recovered a number of pre-signed prescriptions for several patients, as well as medical records for individual patients with unusual controlled substance prescribing patterns.  

Dr. Hassan pled guilty to three felony counts of making false statements to the Medicare program before United States District Judge Catherine D. Perry.  Sentencing has been set for April 23, 2014. 

He now faces a maximum penalty of five years in prison and/or fines up to $250,000 per count.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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

St. Louis, MO - WILLIAM NAES, of St. Charles, pled guilty to theft of government funds for his improper receipt of $150,480 in disability benefits over eight years.  Naes admitted that he earned significant income running a tax preparation business between 2005 and 2013 and omitted that work and income from documents he submitted to the Social Security Administration in connection with his disability status.  

Naes faces up to 10 years imprisonment and a $250,000 fine for his crime.  Restitution to the Social Security Administration is also mandatory. 

Judge E. Richard Webber accepted his guilty plea this morning and has scheduled sentencing for April 24, 2014.  Naes remains in custody pending sentencing.

The case was investigated by the Social Security Administration Office of Inspector General and the Treasury Department.  Assistant United States Attorney Tom Albus is handling the cased for the U.S. Attorney’s Office.

St. Louis, MO - The owner and operator of Discount Tax Service was indicted for allegedly filing false tax returns. The indictment alleges that Christopher Mickles prepared over seven hundred and fifty federal income tax returns on behalf of his clients for tax years 2008 through 2011.  Many of those returns contained falsely claimed fraudulent items and credits, such as household help income and earned income tax credits.   

CHRISTOPHER MICKLES, St. Louis, MO, was charged with four felony counts of aiding and abetting in the preparation of false tax returns.  He is expected to appear in federal court later today.

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

This case was investigated by IRS 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 - THOMAS STRITZEL, Former Chief of the St. Louis Park Rangers, was sentenced to 36 months in prison on charges that he and Joseph Vacca, Former Deputy Commissioner of the St. Louis Parks Division, defrauded the City of St. Louis of approximately one-half million dollars by submitting false invoices for materials and services supplied to the Parks Division.  He appeared before United States District Judge Carol E. Jackson in St. Louis.

According to court documents at the time of their guilty pleas, from January 1, 2005, to December 31, 2012, Vacca and Stritzel embezzled funds of the City of St. Louis based upon the submission of sham and false invoices, which included false charges of approximately $472,722.  They used the funds for their own personal use, including lease payments on personal vehicles, fuel costs, the payment of personal credit card charges and other personal living expenses unrelated to the legitimate operations of the St. Louis Parks Division.

Vacca and Stritzel set up a sham company called Dynamic Management and then funneled city funds received through the submission of false and sham invoices to Dynamic Management's bank account. They then used those fraudulently obtained funds for their own personal use, including leasing personal vehicles, payment of fuel costs and the payment of personal credit card charges.

Stritzel, St. Louis, mo, was also ordered to pay restitution of $472,722.

Joseph Vacca, St. Louis, MO, was sentenced in December to 36 months in prison, and ordered to pay restitution to the City of St. Louis in the amount of $472,722.

This case was investigated by the Federal Bureau of Investigation and 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 - ELIZABETH BYRNE was sentenced to 41 months in prison for embezzling more than $2 million over the course of about ten years.

According to court documents, between 1997 and February 2013, Elizabeth Earnest, a/k/a Elizabeth Byrne, a/k/a Elizabeth Johnson, worked as an office manager and assistant for various businesses owned by an individual referred to in court documents as Employer.  Her duties included managing and paying the Employer's personal bills and attending to the Employer's personal schedule.  Earnest admitted with her plea that from 2003 to February 2013, she abused her position of trust to embezzle funds from her Employer and to cover up her embezzlement.  Earnest made blank checks signed by the Employer payable to herself instead of paying the Employer's personal expenses.  After making the checks payable to herself, she deposited the checks into one of her personal bank accounts and used the funds to pay her personal bills and to send funds to family members.  In order to conceal the scheme, Earnest intercepted Employer's monthly bank statements and removed and shredded the incriminating checks that she had made payable to herself.  To further cover her tracks, Earnest falsified bookkeeping entries she prepared for the Employer and falsely classified the expenses.

Her scheme was uncovered in February 2013 when she was out of the office for a vacation and someone else was able to receive, open and review the true bank information.

Earnest, St. Louis, MO, pled guilty last July to one felony count of mail fraud and appeared today for sentencing before United States District Judge Jean C. Hamilton.  Additionally, as part of her earlier plea, Earnest has agreed to the forfeiture to the government all money and property derived from her illegal activity.

This case was investigated by the United States Postal Inspection Service.  Assistant United States Attorney John Bodenhausen handled the case for the U.S.

St. Louis, MO - CRAIG MOLITOR was sentenced to 84 months in prison on January 22 for distributing multi-ounce quantities of methamphetamine in the St. Louis metropolitan area.  

According to statements presented to the court at the time of his plea, Craig Molitor began to obtain and distribute methamphetamine before 2010. Molitor obtained bulk quantities of actual methamphetamine, which he distributed to others. He was the main supplier for co-defendant Eric Wessler, who redistributed a large portion of the methamphetamine he received. At times, Wessler also made contact with different sources of supply for actual methamphetamine, which he met through co-defendant Kellen Lincoln.  The sources for actual methamphetamine included Peter Coyle, Gerald Dement, Luz Angelica Carrillo and others. Additionally, Eric Wessler obtained ounces of actual methamphetamine from co-defendant Jason Knox.

As Craig Molitor began to distribute actual methamphetamine before 2010, he utilized various credit cards to fund his trips.  The credit cards used were obtained by his grandmother.  Funds from their joint accounts were used to pay the credit card balances, bills and to make periodic payments for various high-end vehicles utilized by Molitor.  Molitor had his grandmother make deposits from cash derived from the distribution of actual methamphetamine, which was used to pay the various bills.  The purpose was to conceal the true nature of the proceeds of actual methamphetamine distribution. 

The following co-defendants have previously pled guilty to related charges:

• Eric Wessler, Lake Saint Louis, MO, scheduled for sentencing March 25, 2014
• Gerald Dement, Liberty, MO, sentenced in October to 120 months in prison
• Peter Coyle, Larexa, KS, sentenced in August to 120 months in prison
• Jason Knox, Foristell, MO, scheduled for sentencing February 6, 2014
• Kellen Lincoln, Kansas City, MO, sentenced in August to one year and one day in prison.

Luz Angelica Carrillo, is currently a fugitive and still faces trial.  She is presumed innocent until and unless proven guilty.

This case was investigated by the Drug Enforcement Administration, Franklin County Narcotics Unit and IRS Criminal Investigation.

St. Louis, MO - ANTHONY LAMONT WINTERS, of St. Louis, was sentenced to two years imprisonment for aggravated identity theft.  Winters appeared before Judge Stephen N. Limbaugh, Jr. in St. Louis.  Winters admitted to stealing credit card numbers from patrons of a Maplewood restaurant at which he was employed in January 2013.  Winters charged more than $12,000 to the stolen credit cards.  Winters had fled to New York City by the time he was apprehended and awaits trial on other stealing and identity theft related charges in New York City; Pittsburgh, Pennsylvania; Arlington, Virginia; Chesapeake, Virginia; and Anne Arundel County, Maryland.  In addition to the term of imprisonment, Winters will be ordered to repay the stolen funds.

This case was investigated by the Maplewood Police Department with the assistance of Amtrak Police Department and the United States Marshals Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.

St. Louis, MO - The owner and operator of a St. Louis County tax preparation service was indicted yesterday for filing false returns and stealing the identities of taxpayers.  RONALD SHONIWA, of Florissant, faces one count of theft of government funds for filing 15 tax returns, which generated more than $50,000 in improperly paid refunds, and two counts of aggravated identity theft for stealing the names and social security numbers of unsuspecting citizens and filing fraudulent returns in their names without their consent or knowledge. 

If convicted, the theft of government funds count carries a maximum penalty of ten years, and/or a fine of up to $250,000.  The aggravated identity theft counts are punishable by two years mandatory imprisonment and a fine of up to $250,000.  The sentence for aggravated identity theft runs consecutively to any sentence imposed on the theft of government funds count. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

Additionally, restitution to the IRS for the improperly paid refunds will be sought.

United States Attorney Richard Callahan noted that "stolen identity refund fraud is a large and growing problem across the country, and the IRS and Justice Department dedicates substantial resources in fighting it, particularly at this time of year." 

"Taxpayers should exercise caution when choosing a tax professional, especially since you will hand over your personal and financial identifying information," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.  "They should also be aware of the many free, professional tax preparation services available to low and moderate income taxpayers and senior residents throughout St. Louis."

This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.

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

St. Louis, MO - The United States Attorney’s Office for the Eastern District of Missouri announced that OZKAN SEMIZOGLU and SABAHADDIN AKMAN, both from Turkey, have been charged with obtaining unapproved, misbranded, adulterated and counterfeit cancer treatment prescription drugs from Turkey and other foreign countries and smuggling the drugs into the United States, including three shipments sent from Turkey to Chesterfield, Missouri.

According to the indictment, which was filed this morning in St. Louis, Missouri, the defendants 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.  Defendants 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, the indictment states that the defendants shipped some prescription drugs requiring 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 the United States, defendants were aware that on many occasions their packages of their prescription drugs arrived in the United States at temperatures outside the constant cold temperature range discussed on the drugs’ labeling.

Semizoglu and Sabhaddin Akman, both of Instanbul, Turkey, were charged by indictment by a federal grand jury with one felony count of conspiracy to smuggle merchandise into the United States and three counts of smuggling. Both were arrested this morning in Puerto Rico.

If convicted, each count of smuggling carries a maximum penalty of twenty 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 Food and Drug Administration, Office of Criminal Investigations, with assistance from the United States Marshal’s Service, the Office of Inspector General for the U.S. Department of Health and Human Services, Johnson County Crime Lab of Olathe, Kansas, and the United States Attorney’s Offices for the Eastern District of Missouri and the District of Puerto Rico.  

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

Cape Girardeau, MO - The United States Attorney's Office announced today that a Knox County, Missouri, man was sentenced to federal prison for three charges involving transporting stolen goods.

CHARLES WILLIAM TAGUE of Hurdland, Missouri, was sentenced to 14 months imprisonment on one felony count of conspiracy to transport stolen property across state lines and two felony counts of interstate transportation of stolen goods. He was also ordered to pay a total of $801,928.07 restitution.  Upon completion of the prison sentence, he will be placed on federal supervised release for a period of three years.  Tague appeared before U.S. District Judge John A. Ross on Wednesday, January 15, 2014, in Cape Girardeau.

Previously with his plea, Tague admitted that on April 26, 2010, Roger L. Smith, the owner of Yield Plus, Inc., a plant food company in Scott City, Missouri, realized that someone had stolen over 8,000 gallons of liquid plant food from his business over the weekend.  Smith contacted the Scott County Sheriff’s Department and an investigation was initiated.

Yield Plus, Inc., is a company that makes liquid plant food that is shipped in interstate commerce to many different states.  The investigation revealed that the plant manager, John A. Greenlee, was filling tanker trucks owned by Tague at night and on weekends in exchange for money.  Tague, who owned a trucking company, would in turn sell the stolen liquid plant food to mostly out-of-state customers.  Tague collected a total of nearly $802,000 from those customers for the stolen liquid plant food and paid Greenlee roughly $14,000. 

Greenlee was previously sentenced to a term of 27 months imprisonment and ordered to pay restitution in the amount of $283,672.

The Federal Bureau of Investigation and the Missouri State Highway Patrol are commended for their efforts to prosecute this case.  Assistant United States Attorneys Abbie Crites-Leoni and Morley Swingle handled the prosecution for the Government.  

St. Louis, MO - Three area businessmen surrendered to authorities on two separate indictments alleging 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 indictments, William Glasgow owned dozens of rental properties as part of his real estate business, Glasgow Realty, and did business with Excel Bank, the holding company of which was Investors Financial Corporation of Pettis County, Missouri.  The indictment states that Glasgow had two loans on his rental properties, which he received by falsifying documentation. 

In a separate unrelated indictment, James Crews and Michael Hilbert are alleged to have engaged in the real estate business, doing business through various entities including Crews Corporation, Hillcrew Properties, Merz Properties, Eagle Group and Marathon RE.  They owned dozens of rental properties in the St. Louis area and are alleged to have defrauded Excel Bank by submitting numerous draw requests for hundreds of thousands of dollars in escrow funds set aside for improvements to those properties. 

WILLIAM GLASGOW, Town & Country, MO, was indicted by a federal grand jury on two felony counts of bank fraud. In a separate unrelated indictment, JAMES CREWS, Wentzville, MO; and MICHAEL HILBERT, St. Charles, MO, were indicted the same day on two felony counts each of bank fraud.  The indictments were returned December 11, 2013, but remained sealed until the defendants appeared in federal court for arraignment today in St. Louis.

If convicted, each count of 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.

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 - United States Attorney Richard Callahan announced today that for the fiscal year 2013, his office collected $11,448,830 in criminal and civil actions during the year.  Of this amount, $10,113,957 was collected in criminal actions and $1,334,873 was collected in civil actions

In addition to the above eleven million dollars, the Office also assisted partner law enforcement agencies in the Eastern District of Missouri in collecting an additional $8,442,329 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.

Aside from these collection efforts in the Eastern District of Missouri, the office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect additional monies, but those monies are not included in the numbers being announced.         

Earlier today, Attorney General Eric Holder announced that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013.        The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

"The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."

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

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

St. Louis, MO - MICHAEL WALLIS pled guilty to federal criminal charges related to a fraud scheme involving applications for home loans. 

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

From as early as 2007 until as late as January 2010, in the Eastern District of Missouri, Wallis conspired with J.B. and J.H. to commit the crimes of Bank Fraud and False Statements to an Agency of the United States, in that Wallis and his co-conspirators made material false representations on HUD-1 forms, resulting in the disbursement of excess loan funds which Wallis and his co-conspirators shared among themselves.  As part of the conspiracy, Wallis and his co-conspirators found and recruited individuals to apply for loans to purchase homes.  Wallis and his co-conspirators supplied the funds for the down payments on the home purchases, but falsely represented to HUD and to the lending banks that the borrowers were making the down payments.  Wallis and his co-conspirators created fake "gift letters," which falsely stated that the borrowers’ relatives were providing the down payment funds as gifts to the borrowers.

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

Most of the loans went into default, causing substantial losses to the United States and financial institutions.  The parties agreed that, for purposes of sentencing guideline calculations, Wallis is responsible for losses in excess of $400,000 but not more than $1,000,000.

Wallis, St. Louis, MO, appeared before United States District Judge John Ross and pled guilty to one felony count of conspiracy to commit bank fraud and make false statements and one felony count of making false statements.  Sentencing has been set for March 27, 2014.

Conspiracy carries a maximum of 5 years in prison and/or fines up to $250,000, or both; and making false statements carries a maximum of five years in prison and/or fines up to $250,000, or both.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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

St. Louis, MO - MICHAEL EDWARD FILMORE pled guilty to a multi-million dollar bank fraud against Pulaski Bank over several years while operating a medical equipment sales firm. In his plea agreement, Filmore admitted to fabricating and altering brokerage account records which purportedly showed he had millions of dollars in securities that he agreed to pledge as collateral for his outstanding loans, including a $1,000,000 revolving line of credit.  Ultimately, Filmore obtained more than six million dollars from Pulaski through the fraud scheme and currently owes Pulaski more than five million dollars.  None of the security pledged by Filmore, in the form of securities accounts or purported valuable medical equipment, existed as was represented to the bank.

According to court documents, Filmore was a borrower from Pulaski Bank, and had at least fifteen outstanding loans with a total balance owed of more than six million dollars by late 2013.  Most of these loans are held in the name of Filmore’s company, Healthcare Partners Group, LLC.  Over the course of Filmore’s relationship with Pulaski, which spanned many years, it was Pulaski’s understanding that he was engaged in the brokerage of medical equipment.  Filmore often needed to finance the acquisition of equipment, which he sold and leased to his customers.

On November 1, 2013, Pulaski personnel determined that purchase order and account information associated with a new loan was suspicious.  Further investigation by the bank revealed fictitious information had been submitted to the bank.  Discovering these discrepancies, Pulaski cancelled the wire transfer of funds and reported the matter to authorities.  A criminal complaint was filed against Filmore in federal court on November 16, 2013.

Filmore, Chesterfield, MO, pled guilty to one felony count of bank fraud before United States District Judge Audrey G. Fleissig, who set sentencing for March 18, 2014.

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

This case was investigated by the Federal Bureau of Investigation; the U.S. Postal Inspection Service and the Special Inspector General for the Troubled Asset Relief Program (TARP), in cooperation with the executive staff of Pulaski Bank, who offered essential support to the investigation.  Assistant United States Attorney Tom Albus is handling 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, entered a guilty plea to bank robbery, including the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri.  He entered his plea before United States District Judge Catherine D. Perry in St. Louis.

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. 

Bank robbery 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. A sentencing date has not been set.

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

St. Louis, MO -- TRAY FERGUSON of Saint Louis, Missouri, was sentenced to 18 years imprisonment on December 18 by the Honorable Catherine D. Perry.  Ferguson pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine and one count of possession of a firearm in furtherance of drug trafficking in July 2013.  Ferguson is the first of five defendants to be sentenced in connection with an April 2013 conspiracy in which the five men agreed to, among other things, arm themselves, make entry into a house located in south Saint Louis City, and rob between 22 and 30 kilograms of cocaine from inside the residence. 

In preparation for the robbery, Ferguson armed himself with a Springfield Armory make, Model XD, .45 caliber pistol loaded with 14 rounds of ammunition; an additional .45 caliber magazine loaded with 13 rounds of ammunition; and a Glock make, Model 22, .40 caliber pistol with an extended magazine loaded with 21 rounds of ammunition.  Ferguson also obtained and provided  to co-defendant Ricky Turner a Colt, Model Python, .357 caliber revolver; 15 rounds of ammunition; and a loaded Hi Point, Model C9, nine millimeter caliber pistol.  Co-defendant James Clark possessed a Glock make, Model 19, nine millimeter caliber pistol with an extended magazine loaded with 33 rounds of ammunition.

Sentencing for each of the remaining four co-defendants has been set as follows:  Tramaine Ellis: January 2, 2014; Ahmad Britton: February 11, 2014; Rickey Turner: February 6, 2014; and James Clark: March 4, 2014.

Ferguson’s sentencing comes as a result of the proactive investigation initiated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Louis Metropolitan Police Department in the Spring of 2013 to reduce violent crime within the City of Saint Louis. 

St. Louis, MO - The United States Attorney's Office announced today that KEVIN BROWN, owner of Invision Investments, was sentenced to 36 months of imprisonment for operating a Ponzi-style investment scheme in which Brown falsely and fraudulently represented to investors that their money would be used to invest in real estate.

According to court documents, Brown represented to investors and potential investors that Invision Investments had equity in property when in truth and fact, only a portion of investor funds went into the purchase and/or rehabilitation of properties.  Brown executed and provided promissory notes that falsely and fraudulently represented the rate of return investors were promised to receive.  He represented that Invision Investments would acquire, rehabilitate and resell properties sufficient to produce the promised rates of return.  In truth, Invision's real estate purchases and efforts to rehabilitate and resell properties were insufficient to generate the promised funds.  Investors were paid returns on their investments using funds obtained from subsequent investors, in addition to returns on legitimate investments, i.e. the sale of real estate.  In addition, Brown used investor's funds for business expenses, to pay interest to other investors and to pay Brown's compensation and some personal expenses.

Brown was also ordered to pay more than $1.6 million in restitution to victims of his fraud scheme.

This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.  Assistant United States Attorney Dianna R. Collins handled the case for the U.S. Attorney's Office.

St. Louis, MO - MELANIE ANN MAHANEY was indicted on multiple fraud charges involving her alleged misuse of bank funds. 

According to the indictment, between March 8, 2013, and April 19, 2013, defendant was recruited to impersonate car burglary victims in a bank fraud scheme.  During the course of the scheme, defendant received stolen drivers licenses, social security cards, personal checks, credit and debit cards and other forms of identification which had been stolen by others from the vehicles.  Using the stolen identification of one car burglary victim, defendant cashed checks stolen from other car burglary victims at banks located in the St. Louis Metropolitan Area and the Southern District of Illinois.

Mahaney, St. Louis, was indicted by a federal grand jury on two felony counts of bank fraud and two felony counts of aggravated identity theft. 

If convicted, each count of bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million and each count of aggravated identity theft carries a mandatory imprisonment of 2 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 U.S. Postal Inspection Service.  Assistant United States Attorney Tracy Berry handled 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.