Southern District of Ohio

CINCINNATI – An organization charged as part of a public corruption racketeering conspiracy pleaded guilty in U.S. District Court today.

Generation Now pleaded guilty to one count of participating in a more than $60 million racketeering conspiracy.

Jeffrey Longstreth, 44, a longtime campaign and political strategist to Ohio House Representative Larry Householder, signed the plea document on behalf of the entity. Longstreth pleaded guilty in October 2020 to an identical individual charge.

According to court documents, Generation Now was at the center of Householder and others receiving millions of dollars in exchange for specific official action. Householder and his enterprise received approximately $61 million through Generation Now from an energy company and its affiliates to pass and uphold a billion-dollar nuclear plant bailout.

Generation Now was created as a purported social welfare organization. According to the plea agreement, the actual purpose of Generation Now was for it to be used as a mechanism to receive undisclosed donations as a benefit to Householder. As part of the conspiracy, Generation Now engaged in financial transactions to conceal the source of payments made by Company A.

As part of the plea, Generation Now agrees to forfeit its assets, including nearly $1.5 million seized from organization bank accounts. The parties involved in the case have recommended a term of probation for the nonprofit of up to five years.

David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Timothy S. Black. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.

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DAYTON – A Dayton man was sentenced in U.S. District Court today to 288 months in prison for distributing carfentanil, fentanyl and heroin that resulted in at least one overdose death.

Myron D. Baker, 37, pleaded guilty to two federal drug offenses the day he was scheduled to stand trial in November 2019.

According to court documents, beginning in at least January 2017, Baker conspired with others to obtain and distribute opioids in Gallipolis and Dayton for personal profit.

Baker, also known as “Science,” “Capo” or “Sci,” maintained a residence on Lexington Avenue in Dayton to store, package and distribute the drugs. He also maintained a video surveillance system at the residence for the protection of his drugs and money. 

Baker and others distributed drugs in the Dayton area that resulted in several overdoses, at least one of which was fatal.

Specifically, in March 2017, two individuals bought what they thought was heroin from Baker and others in Trotwood. The substance actually contained carfentanil. Upon purchasing the drugs, the individuals drove to the parking lot of a Dayton area restaurant to use them. One individual snorted the drugs and the other used a syringe to inject the drugs. Both overdosed, and the person who injected the drugs could not be resuscitated and was pronounced dead the following morning.

As part of his plea, Baker accepted responsibility for causing the death of one individual and serious bodily injury to at least two others who experienced nonfatal overdoses. Baker later attempted to withdraw his guilty plea but was eventually denied by the Court.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Richard S. Biehl announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Sheila G. Lafferty and Amy M. Smith are representing the United States in this case.

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COLUMBUS, Ohio – Theresa R, Gregory, 67, of Mount Vernon, Ohio, was sentenced to 36 months of imprisonment for evading the assessment and payment of incomes taxes due to the Internal Revenue Service (IRS).  Gregory pleaded guilty to the aforementioned charges on Aug. 28, 2020.

Tera L. Gore, 44, of Croton, Ohio was sentenced to six months of imprisonment to be followed by 12 months of home confinement on the same charges.  Gore also pleaded guilty on Aug. 28, 2020.

As part of their sentences, Gregory and Gore were ordered to pay $3.3 million in restitution. Gregory was also ordered to pay a $20,000 fine.

According to court documents, between January 2008 and December 2017, Theresa Gregory and her daughter, Tera Gore, evaded the assessment and payment of income taxes owed to the IRS by Gregory.  As Gregory earned millions of dollars annually, Gregory and Gore worked together to hide Gregory’s income and assets.  They also falsified documents to help Gregory purchase a second home in Florida, including a bank statement that claimed a bank account held nearly $2 million more than it actually held. 

Since the 1990’s, Gregory has earned income from multi-level marketing companies.  As a distributor, Gregory earned commissions and bonuses based on the volume of products she sold, as well as the volume of products sold by other individual’s she recruited to be part of her distributor network.  By 2012, Gregory's annual income exceeded $900,000.  In each subsequent year, Gregory's annual income exceeded $1 million, and in at least one year exceeded $4.5 million.  Between January 2009 through December 2017, Gregory earned approximately $17,498,680.55 in gross income from the multi­ level marketing companies.

Despite this substantial amount of income, according to IRS records, Gregory failed to voluntarily file personal income tax returns and has paid no personal income taxes (other than Form W-2 withholdings) for over 20 years, even though she had an annual obligation to do so.  Dating back to at least 1993, Gregory has been the subject of several IRS civil examination and collection proceedings.  During this period, in furtherance of its examination and collection efforts, the IRS conducted audits, filed substitutes for return, and filed tax liens.  The IRS also notified Gregory of her ongoing obligation to file tax returns for more recent years.  Gore knew that Gregory owed a substantial amount of money for her personal taxes.

Gregory and Gore worked together to conceal Gregory's income and assets from the IRS.  Gregory and Gore systematically moved assets, including businesses and bank accounts, out of Gregory's name and into Gore's name.  Gregory and Gore directed income owed to Gregory to entities and accounts nominally in the control of Gore.  Gregory and Gore took these steps so that IRS records would not link the income or assets to Gregory and did so with the intent to evade the payment and assessment of taxes.

Gregory retained personal control of the funds received from the multi-level marketing companies.  She spent the funds on lavish personal expenses, including home furnishings and home improvements, at high-end retailers such as Louis Vuitton, Jimmy Choo, Saks Fifth Avenue and Nordstrom, on cruises, horse dealers, quarter horse events, custom horse show clothing, gifts for Gore and other family members, mortgage payments on a house in Florida and at various automotive dealerships.

Gore benefitted from her criminal actions through gifts from Gregory.  Gore had bank cards for the bank accounts in her name, and she used them for a substantial amount of personal expenses for herself and her family.  Gregory also authorized the use of funds to purchase and subsidize a feed store, and to purchase and subsidize the operation of an equestrian training center and wedding venue that Gore operated.  Gregory also authorized the use of funds to pay a private tutor and horse trainers for Gore's daughter, and for other individuals who provided personal services to Gore. 

Gregory and Gore also worked together to alter, falsify, forge, and fabricate financial and other business documents relative to Gregory's purchase of a second home in Grand Island, Florida, for $1,115,000.  Gregory financed a portion of the purchase with a seller-backed mortgage to avoid any requirement to disclose tax returns in making the purchase, and in furtherance of her scheme to evade taxes.  Gregory provided documents to the real estate agent, representing that she had sufficient funds to buy the house.  The documents included a business bank account statement representing that the account contained $1,900,003.21.  In truth, the bank account contained only $3.21. Gregory and Gore worked together to alter, falsify, forge and fabricate the documents and provide them to the real estate agent.  Following the false representations, Gregory closed on the purchase of the house.

The combined total tax loss for the 1998 through 2006, 2008, and 2014 through 2017 income tax years was $3,759,889.11.

“Theresa Gregory earned millions of dollars of income, but she did not file an income tax return for over 20 years,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “Gregory and Gore went to great lengths to hide funds from the IRS and evade paying their fair share of taxes.”

David M. DeVillers, United States Attorney for the Southern District of Ohio and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the sentenced handed down by Chief U.S. District Judge Algenon L. Marbley.

This case is being prosecuted by Assistant United States Attorney Peter K. Glenn-Applegate and was investigated by special agents of IRS-Criminal Investigation.

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COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today he will resign as chief law enforcement officer for the Southern District of Ohio effective Feb. 28, 2021.

DeVillers stated:

“It is with a heavy heart that I announce my resignation.  I have been a prosecutor for my entire career, and it was my wish to remain a prosecutor until the end of my career, but that is not to be. I want to thank my family, friends and colleagues for all of the incredible support and encouragement over the years. I also want to thank Senators Portman and Brown for their trust in me. It has been the honor of my life to serve as the United States Attorney for the Southern District of Ohio. While it was my hope to continue on for a few more months to finish some of the work we have started, I am absolutely certain that the AUSAs and investigators working for the people of the Southern District of Ohio will bring this work to a successful and just closure. I am committed to support and assist whoever the President and Senate choose to permanently replace me to the best that I can. I encourage that person to be just, apolitical, aggressive and impactful.”

DeVillers was nominated by former President Donald Trump and began serving as United States Attorney in November 2019 following confirmation by the Senate.

DeVillers has worked as a federal prosecutor for nearly two decades, primarily prosecuting organized and violent crime.

During his tenure as United States Attorney, the office continued significant public corruption investigations, including filing charges against former Ohio Speaker of the House Larry Householder and three Cincinnati city councilmembers.

The U.S. Attorney’s Office for the Southern District of Ohio includes 67 Assistant United States Attorneys and 51 non-attorney personnel. They serve the southern 48 counties in the state, including the Columbus, Cincinnati and Dayton metropolitan areas.

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COLUMBUS, Ohio – A local man was sentenced in federal court in Columbus today to serve 480 months in prison for participating in a racketeering conspiracy on behalf of the transnational criminal organization MS-13.

Pedro Alfonso Osorio-Flores, 41, of Columbus, took part in the mid-2015 murder of Carlos Serrano-Ramos, the November 2015 murder of 17-year-old high school student Wilson Villeda, and the December 2016 murder of Salvador Martinez-Diaz.

“Osorio-Flores was one of the most active, loyal, and violent MS-13 members in Columbus, and he was engaged in nearly every aspect of the gang’s criminal activity in this district,” said U.S. Attorney David M. DeVillers. “For this defendant, 40 years could very well be a life sentence. His appalling conduct deserves nothing less.”

Court documents detail a letter the defendant wrote and sent to one of his co-defendants in February 2020 as one example of Osorio-Flores’ loyalty to MS-13. In the letter, the defendant freely admits to being a member of MS-13 since age 13; threatens to bury a former lover alive if he ever finds her; makes threats against ‘snitches’, the police, and the government; and reaffirms his belief that MS-13 does, and will continue to ‘control the entire world.’ In the same letter, the defendant composed two different songs as an homage to MS-13 and a slight to the victims of his offenses, whom he brags about ‘butchering’ and ‘dragging [] to the hole.’

The defendant, also known as “Smokey,” is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment.

The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.

According to court documents, in summer 2015, Osorio-Flores and other conspirators beat and stabbed Serrano-Ramos to death before placing his body in a shallow grave in the woods in Innis Park.

In the murder of Wilson Villeda, Osorio-Flores and others attacked and killed the victim with a machete and buried his body in a shallow grave near Serrano-Ramos’s remains in Innis Park.

In December 2016, Osorio-Flores surveilled murder victim Martinez-Diaz at the Resolute Athletic Complex before following him home. He provided location updates to fellow MS-13 members so that they could shoot and kill the victim upon his arrival home.

Osorio-Flores pleaded guilty in September 2020 to one count of conspiracy to commit racketeering.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Interim Police Chief Michael Woods announced the sentence imposed by U.S. District Judge Edmund A. Sargus, Jr.

Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.

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An Ohio physician was sentenced to two years in prison today for his role in illegally distributing opioids.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney David DeVillers of the Southern District of Ohio, Special Agent in Charge Keith Martin of the Drug Enforcement Administration’s (DEA) Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office, Special Agent in Charge William C. Hoffman of the FBI’s Cincinnati Field Office, Ohio Attorney General Dave Yost, Interim Administrator/CEO John Logue of the Ohio Bureau of Worker’s Compensation, and Executive Director Steven W. Schierholt of the State of Ohio Board of Pharmacy made the announcement.

Morris Brown, M.D., 73, of Dayton, pleaded guilty to one count of unlawful distribution of controlled substances on Feb. 21, 2020.

Brown was charged in an April 2019 indictment along with four co-defendants:  Ismail Abuhanieh, 50, of Phoenix, Arizona; Mahmoud Elmiari, 44, of Bellbrook, Ohio; Yohannes Tinsae, 48, of Beavercreek, Ohio; and Mahmoud Rifai, 50, of Detroit, Michigan.  All four of Brown’s co-defendants were charged for their roles in agreeing to obtain controlled substances by fraud or misrepresentation for Dayton Pharmacy, which leased space in a building owned by Brown.. Abuhanieh, Elmiari, and Tinsae have been sentenced pursuant to guilty pleas. Rifai is the subject of an active arrest warrant in connection with the case.

The DEA, FBI, HHS-OIG, Ohio Attorney General’s Office, Ohio Bureau of Worker’s Compensation, and Ohio Board of Pharmacy investigated the case. Trial Attorneys Chris Jason, Tom Tynan, and Leslie Garthwaive of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing approximately 65 million pills. The ARPO Strike Force is part of the Health Care Fraud Strike Force Program, led by the Fraud Section.  Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

COLUMBUS, Ohio – Law enforcement officials seized more than 73 pounds of cocaine, 32 pounds of heroin, eight pounds of methamphetamine, nine firearms and hundreds of thousands of dollars in cash this week in relation to federal charges pending against three Columbus men.

Lucio Manuel Munoz, 28, Maximus Alberto Dominguez, 19, and Rene Bernal Gaytan, 22, were charged by federal criminal complaint and arrested on Feb. 3.

The three are charged with conspiring to distribute and possessing with intent to distribute more than five kilograms of cocaine. Each defendant faces a mandatory minimum of 10 years and up to life in prison.

According to court documents, the defendants were conducting illicit narcotics operations from the Red Roof Inn on South State Street in Westerville and from a residence on Chesford Road in Columbus.

Law enforcement officials were conducting surveillance on both locations on Feb. 2 and subsequently stopped Dominguez for a traffic stop on Interstate 270 South. A narcotics K9 alerted to the presence of drugs and officers discovered a kilogram-sized bundle of cocaine in the BMW Dominguez was driving.

It is alleged that Munoz attempted to flee the residence on Chesford Road later that evening with bulk amounts of narcotics in his vehicle. A traffic stop was initiated on Munoz, but he allegedly failed to yield. A vehicle pursuit was initiated and ended in a foot pursuit. Munoz was apprehended and officers secured the Jeep he was driving.

Authorities discovered 30 kilograms of cocaine and four kilograms of methamphetamine in the Jeep. They seized nine firearms and bulk amounts of cash from a subsequent search of the residence.

An affidavit details that agents also found multiple additional kilograms of narcotics with Gaytan in a room at the Red Roof Inn. They also discovered a storage locker in Columbus where a duffel bag of vacuum-sealed bulk currency was located.

Each of the three defendants remains in custody.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio State Highway Patrol Superintendent Col. Richard S. Fambro; Westerville Police Chief Charles Chandler and Columbus Police Interim Chief Michael Woods announced the charges. Assistant United States Attorney Kelly A. Norris is representing the United States in this case.

A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.

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COLUMBUS, Ohio – A former Franklin County Convention Facilities Authority member offered his guilty plea in U.S. District Court today to honest services wire fraud related to a contract with the Greater Columbus Convention Center.

According to his plea, in 2014 and 2015, John P. Raphael, 65, of Columbus, received bribes and kickbacks from a food-service company in exchange for official acts.

Raphael was a member of the Franklin County Convention Facilities Authority board and also served as its treasurer. In those roles, he had a duty to provide honest services to the FCCFA, to Franklin County, and to the people of Franklin County. The FCCFA owned and operated the Greater Columbus Convention Center

In 2014, FCCFA engaged in a confidential bidding process to select a food vendor for the Greater Columbus Convention Center. Four companies submitted bids.

Without disclosing it to the FCCFA, Raphael became a consultant for one of the four companies. In the consulting agreement, the company agreed to pay Raphael a monthly retainer of $5,000 and a “success fee” of $40,000 if the company was able to secure the contract.

Raphael repeatedly took official acts to benefit the food-service company in exchange for money.

On July 8, 2014, Raphael received an email containing a draft of the request for proposal, or RFP, which in its final form would solicit bids from prospective food-service vendors for the Greater Columbus Convention Center. The email also contained a draft of a sample contract that prospective vendors would be expected to execute in the event they won the bid.

Thirty-six minutes after receiving these documents, Raphael sent them to an employee of the company he was assisting.

The draft RFP and draft sample contract were confidential documents and were not to be circulated beyond the FCCFA. Raphael did not share the documents with any other prospective bidder.

The company Raphael was assisting expressed two “items of concern” with the draft RFP and requested two changes. Each of the proposed changes was made part of the final contract that the FCCFA and the company Raphael was assisting signed.

Raphael sent other documents to the company that were useful to it and that he did not share with the other prospective bidders. Raphael also participated in FCCFA meetings related to the bidding process without disclosing that he was working for the company.

The company Raphael was assisting ultimately won the contract. Two days after the contract was signed, Raphael sent an invoice for the $40,000 “success fee.” The company paid the fee. In total, Raphael received $144,00 from the company through the consulting agreement.

Honest services wire fraud is a federal crime punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

Vipal J. Patel, who is Acting United States Attorney for the Southern District of Ohio for this case; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Ohio Ethics Commission Executive Director Paul M. Nick announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Peter K. Glenn-Applegate and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.

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A New York man pleaded guilty in U.S. District Court to selling a mounted leopard, which is an endangered species.

Michael T. Merisola, 62, of Buffalo pleaded guilty Jan. 29 to one count of violating the Endangered Species Act before U.S. Magistrate Judge Chelsey M. Vascura.

According to his plea, in August 2019, Merisola posted a photograph on his Instagram page that included a mounted leopard in the background. An undercover special agent with the U.S. Fish and Wildlife Service communicated with Merisola about buying the leopard from the defendant. The two discussed the illegality of buying/selling a leopard across state lines.

Merisola said he wanted $4,200 for the leopard, and the undercover agent traveled from Ohio to Buffalo to see the mounted animal and make a down payment to purchase it. Merisola later accepted the remaining payment and shipped the leopard from New York to Ohio.

Leopards are classified under federal regulations as threatened or endangered wherever they are found.

Special Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio and Trial Attorney Adam C. Cullman from the Justice Department’s Environment and Natural Resources Division are prosecuting the case.

DAYTON – A Dayton man pleaded guilty in U.S. District Court here today to unlawfully possessing a pipe bomb.

Michael J. Rhea, 27, pleaded guilty to possessing an unregistered explosive device and to illegally possessing the explosive device as a frequent user of controlled substances.

According to court documents, in March 2020, officers with the Kettering Police Department encountered Rhea, who had a warrant out for his arrest. Officers explained to Rhea that he was going to be detained and discovered three methamphetamine pipes and a pipe bomb on Rhea and in his vehicle.

The Dayton Police Department’s Regional Bomb Squad was called to the scene and safely removed the pipe bomb, which had a protruding fuse and was filled with powder and BBs.

During a prior arrest, Rhea told law enforcement he uses methamphetamine daily.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Richard S. Biehl and Kettering Police Chief Christopher N. Protsman announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Dwight K. Keller and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.

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COLUMBUS, Ohio – A former Dublin, Ohio woman was sentenced in U.S. District Court today to 30 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.

Li Chen, 47, also conspired to commit wire fraud.

Chen admitted in her guilty plea in July 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for her own personal financial gain.

Chen and her husband, co-conspirator Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital.

Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.

Court documents detail that Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen started a company in China to sell the kits.

Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. She also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.

“Chen and her husband executed a scheme over the course of several years to set up businesses in China, steal American research and profit from doing so,” U.S. Attorney David M. DeVillers said. “Chen willingly took part in the Chinese Government’s long-term efforts to steal American intellectual property. She deserves time in federal prison.”

“Chen’s sentencing today is a recognition of the seriousness of this offense,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “Chen admitted to abusing the trust of Nationwide Children’s Hospital by stealing cutting-edge research to establish a company in China for her own financial gain. This sentence should serve as a deterrent to anyone else committing similar acts that the FBI will work closely with our partners to ensure the United States remains a world leader in science and technology innovation.”

Chen will forfeit approximately $1.45 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. As part of her sentence, she was ordered to pay $2.6 million in restitution.

Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Zhou has also pleaded guilty and awaits sentencing.

David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.

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A former Dublin, Ohio, woman was sentenced in U.S. District Court today to 30 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.

Li Chen, 47, also conspired to commit wire fraud.

Chen admitted in her guilty plea in July 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for her own personal financial gain.

Chen and her husband, co-conspirator Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital.

Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.

Court documents detail that Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen started a company in China to sell the kits.

Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. She also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.

“For far too long, the People’s Republic of China (PRC) has encouraged the outright theft of American trade secrets through Chinese government programs that reward researchers for stealing what China cannot produce through its own ingenuity,” said Assistant Attorney General John C. Demers for the National Security Division. “These programs, like the Thousand Talents, are not innocuous platforms for academic collaboration. Today’s conclusion of yet another successful prosecution for theft of trade secrets encouraged by the PRC Government serves as a warning to all who might seek to profit from China’s illicit efforts to achieve technological dominance through thievery.”

“Chen and her husband executed a scheme over the course of several years to set up businesses in China, steal American research and profit from doing so,” said U.S. Attorney David M. DeVillers for the Southern District of Ohio. “Chen willingly took part in the Chinese government’s long-term efforts to steal American intellectual property. She deserves time in federal prison.”

“A hospital’s most important mission is to help people live longer and healthier lives. The defendant’s mission, however, was to steal trade secrets and create a company in China to make money off those stolen trade secrets,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI will not stop its efforts to identify people who steal technology for their own financial benefit or for the benefit of a foreign government.”

“Chen’s sentencing today is a recognition of the seriousness of this offense,” said Special Agent in Charge Chris Hoffman of the FBI’s Cincinnati Division. “Chen admitted to abusing the trust of Nationwide Children’s Hospital by stealing cutting-edge research to establish a company in China for her own financial gain. This sentence should serve as a deterrent to anyone else committing similar acts that the FBI will work closely with our partners to ensure the United States remains a world leader in science and technology innovation.”

Chen will forfeit approximately $1.25 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc. As part of her sentence, she was ordered to pay $2.6 million in restitution.

Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Zhou has also pleaded guilty and awaits sentencing.

The FBI Cincinnati Division investigated the case. Assistant U.S. Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant U.S. Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.

DAYTON – Steven Shawn Smith, 48, of Miamisburg, Ohio, pleaded guilty in U.S. District Court today to attempting to coerce a minor while registered as a sex offender.

Parties involved in Smith’s case have recommended a sentence of 25 years in prison.

According to his plea, Smith created nine online dating profiles with the names “Sammy” and “Shaw.” From April 2020 through October 2020, Smith communicated with an undercover FBI agent posing as a minor. Smith requested nude images from the undercover agent on multiple occasions. The defendant also sent images of his nude genitalia to the undercover agent.

In one communication, when the undercover agent refused to send nude photos, Smith said, “I know that you don’t want to send me those pictures but I was hoping that you would understand just how much it would mean to me and how close it would bring us.”

Court documents detail that Smith discussed meeting with the undercover agent to engage in sexually explicit conduct and sent the officer $75 via Cash App so that the purported minor could buy a one-way bus ticket to Ohio.

In addition to communicating with the undercover agent, Smith messaged more than 170 other online users who identified themselves as minors. He received sexually explicit images from at least 21 of the purported minors and sent nude images of himself to at least 70 users.

Smith was convicted in 1994 in Athens County Common Pleas Court of one count of rape of a child, and as a result, is required to register as a sex offender.

David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant Deputy Criminal Chief Laura I. Clemmens and Assistant United States Attorney Rob Painter are representing the United States in this case.

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CINCINNATI – Thomas Winkelbach, 79, of Cincinnati, was sentenced in U.S. District Court today to 240 months in prison and a lifetime of supervised release for taking sexually explicit photos of a toddler victim.

Winkelbach pleaded guilty in federal court in July 2020 to one count of sexual exploitation of a minor.

According to court documents, Winkelbach used a digital camera to take sexually explicit pictures of a young child touching Winkelbach’s penis and other pictures of Winkelbach masturbating in front of the victim. The crime occurred in 2014 or 2015, but the exact date is unknown. The victim was between 1 and 2 years old.

Investigators say in court documents that Winkelbach has been searching for, downloading and trading child pornography on the internet for years. Between all of his digital media seized by investigators in October 2019, Winkelbach possessed thousands of images of child pornography.

The Hamilton County Sheriff’s Office and Cincinnati Police Department’s Regional Electronics Computer Investigations (RECI) Task Force investigated this case.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Charmaine McGuffey; and Cincinnati Police Chief Eliot K. Isaac announced the sentence imposed today by U.S. District Judge Michael R. Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.

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CINCINNATI – The pastor of a Sharonville church was sentenced via video conference in U.S. District Court today to 120 months in prison for sexually coercing a minor female.

Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted in June 2020 to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and Aug. 5, 2019 at his office at the Mision Cristiana el Calvario Church.

Court documents detail that Guerrero told the victim God was speaking to him and the only way to get out of the dark place was for the victim to have sexual relations with Guerrero. The pastor referred to this as a “cleansing process.”

According to the Guerrero’s plea agreement, he communicated with the victim via text messages, audio and video calls on Facebook Messenger. He coerced the victim into sending him sexually explicit photos and engaging in a sexually explicit video call. Guerrero cited several biblical verses while making the requests.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Sharonville Police Chief Steve Vanover announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.

# # #

DAYTON – A Dayton man pleaded guilty in U.S. District Court in Dayton today to conspiring with others to steal more than 50 firearms from Target World in Sharonville in June 2018.

Miyauhn Vineyard, 21, admitted that on June 17, 2018, he and other co-conspirators parked in an adjacent parking lot and cut off an exterior door lock to the store. The individuals then smashed display cases in the retail area of the store and stole 58 firearms.

According to court documents, two days later, the ATF recovered 10 of the firearms stolen by the defendant through a third-party sale.

Vineyard pleaded guilty to conspiring to steal firearms from a federal firearms licensee, a crime punishable by up to five years in prison.

This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

David M. DeVillers, United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.

# # #

CINCINNATI – A Miami, Fla. man pleaded guilty to conspiring in a racketeering enterprise to defraud individuals through moving companies located throughout the United States.

Andrey Shuklin, 33, entered his guilty plea in U.S. District Court in Cincinnati today.

Shuklin was one of 12 defendants indicted in July 2018. According to court documents, the defendants operated and worked through several affiliated moving companies to enrich themselves by stealing from customers who hired them to move their household goods.

The enterprise executed their scheme through various moving companies in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. Approximately 1,000 customers have been identified as victims.

Shuklin admitted to participating in the scheme from April 2013 through July 2018. The defendant was the owner of affiliated moving companies and worked out of the enterprise’s main business offices in Florida.

One of the enterprise’s warehouses was in West Chester, Ohio, and some of the identified victims reside in the Southern District of Ohio.

As part of the conspiracy, the defendants would provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would load the customers’ goods onto the truck and then the price of the move would be bumped. Co-conspirators would use an inflated cubic footage for the price of moving the customers’ goods.

Shuklin tracked the “actual” or “real” cubic footage for customers’ goods and charged customers based on the fraudulently inflated price.

Identified victims of the moving companies fraud lost more than $1.5 million total.

Shuklin pleaded guilty to one count of participating in the racketeering conspiracy, which is punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Andrea Kropf, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT); and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Douglas R. Cole. Assistant United States Attorneys Megan Gaffney Painter and Matthew C. Singer are representing the United States in this case.

# # #

COLUMBUS, Ohio – A Virginia man was sentenced in federal court in Columbus today to 360 months in prison for participating in a racketeering conspiracy in Columbus on behalf of the transnational gang MS-13.

Jose Daniel Gonzalez-Campos (a/k/a Flaco), 31, of Falls Church, Va., took part in the November 2015 murder of 17-year-old high school student Wilson Villeda.

Gonzalez-Campos is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment.

The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.

Court documents detail that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.

The murders sometimes involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death.

In the murder of Wilson Villeda, MS-13 members and associates attacked and killed the victim with bladed weapons and buried his body in a shallow grave in the woods in Innis Park.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.

Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.

# # #

COLUMBUS, Ohio – Two Columbus men were sentenced in U.S. District Court for their roles in the March 2020 armed robbery of a local pawn shop.

De’onte Peoples, 19, and Demetrius E. Braxton, 23, each previously pleaded guilty to one count each of robbery and brandishing a firearm in furtherance of a crime of violence.

Braxton was sentenced today to 74 months in prison and Peoples last week to 76 months in prison.

According to court documents, it was Peoples’ idea to commit a robbery at Lev’s Pawn Shop, a federal firearms licensee located on Morse Road. Peoples and Braxton drove to the pawn shop around 2pm on March 5, 2020 in Peoples’ vehicle.

Peoples and Braxton entered the store carrying firearms and wearing face masks and plastic bags over their shoes. Peoples also carried a black suitcase. The defendants brandished their firearms and demanded three pawn shop employees fill their suitcases with firearms and jewelry from the store’s display cases.

While the robbery was in progress, a customer walked into the pawn shop. Peoples took the man’s wallet, reviewed its contents and then threw the wallet into the victim’s face.

As the defendants left Lev’s Pawn Shop, one of them yelled he would kill anyone who called the police.

In total, the co-conspirators stole 27 firearms, more than 200 pieces of jewelry and approximately $2,700 in cash.

Congress sets the minimum and maximum statutory sentences. Sentencing of defendants is determined by the Court based on the advisory sentencing guidelines and other statutory factors.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentences imposed by U.S. District Judge Edmund A. Sargus, Jr. The Mifflin Township Police Department assisted in this case. Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney S. Courter Shimeall are representing the United States in this case.

# # #

COLUMBUS, Ohio – Jeffrey A. Fisher, 49, of Canal Winchester, was sentenced in U.S. District Court today to 200 months in prison for sexually exploiting at least three minor females between February and May 2019.

According to court documents, Fisher met a 14-year-old girl from Michigan through an online app and solicited nude photographs from the girl.

Fisher’s plea agreement details online conversations between him and the victim in which he makes sexually-explicit demands of the victim and states, “That was a test to see if you would be obedient” and “im [sic] testing you to see if you’ll obey and be a good slave.”

During their investigation into Fisher’s conduct, law enforcement officials discovered Fisher had also victimized female minors from Columbus, Ohio and New Jersey. Forensic examinations of Fisher’s and the victim’s electronics revealed sexually explicit photographs of the victims.

At the time of his offense, Fisher was a registered sex offender as the result of a local 2012 conviction. Fisher was convicted in Franklin County Court of Common Pleas of attempted illegal use of a minor in nudity-oriented material and four counts of unlawful sexual conduct with a minor. He was sentenced to five years in prison.

David M. DeVillers, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney Heather A. Hill is representing the United States in this case.

# # #

CINCINNATI – A Wilmington man has been charged federally with making interstate threats and threatening a witness. The crimes arise from the man’s alleged communications online related to his participation in the Jan. 6, 2021 riots at the United States Capitol.

Justin Stoll, 40, was arrested this morning by the FBI’s Joint Terrorism Task Force and appeared in U.S. District Court in Cincinnati, at which time his case was unsealed.

According to an affidavit written in support of the criminal complaint pending against Stoll, he used the username “Th3RealHuckleberry” on the app Clapper and on YouTube to post videos related to his participation in the Capitol protests.

In one such video, it is alleged Stoll asks his viewers if he should wear a black United States flag shirt to D.C., stating, “Basically, if you are an enemy combatant, you will be shot on sight…I know this is the end-all flag…”

Stoll also allegedly posted videos of himself outside the Capitol with other protesters in which he said, among other things, “D.C.’s a war zone!...You ain’t got enough cops, baby! We are at war at the Capitol…. We have taken the Capitol. This is our country.”

According to the court document, Stoll received comments from concerned citizens in response to his YouTube videos, including from one user who said (s)he had saved Stoll’s video. Stoll responded via another video, in which he said, in part:

Well, that shows your f------ ignorance because, clearly, the capitol building is owned by the people, so again, nothing will happen. Secondly, I never admitted I went into it, did I? Go watch the video again. Daddy’s not stupid. [Wink.] Third, if you ever in your f------ existence did something to jeopardize taking me away from my family, you will absolutely meet your maker. You can play that for the D.A. in court, I don’t care. If you ever jeopardize me, from being with my family, you will absolutely meet your mother f------ maker, and I will be the one to arrange the meeting.

Interstate communication of a threat is a federal crime punishable by up to five years in prison. Tampering with a witness through intimidation carries a potential maximum sentence of 20 years in prison.

David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant Deputy Criminal Chief Timothy S. Mangan and Assistant United States Attorney Julie D. Garcia are representing the United States in this case.

A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.

# # #

COLUMBUS, Ohio – United States Attorney David M. DeVillers confirmed today that human remains from two individuals were located during the execution of a search warrant on Jan. 14 at 2448 Sullivant Avenue.

Authorities are investigating the possibility that the bodies may be connected to the Aug. 26, 2018 missing persons report of Henry Clay Watson and Tera Lynn Pennington. The families of the missing persons have been notified and authorities are working to verify their identities.

The bodies were discovered partially dismembered, buried in the basement and covered in concrete.

This is a joint investigation with Homeland Security Investigations (HSI), Franklin County Sheriff’s Office, Columbus Division of Police, Ohio Bureau of Criminal Investigations (BCI), Franklin County Coroner’s Office and the Columbus Fire Department.

We are unable to provide any further details about this ongoing investigation.

Law enforcement authorities ask that anyone with related information call the HSI tip line at (866) DHS-2423.

# # #

CINCINNATI – Jason Mize, 34, of Cincinnati pleaded guilty in U.S. District Court today to using unreasonable force while acting under color of law.

According to plea documents, on August 20, 2016, Hamilton County Sheriff’s Office deputies arrested a 61-year-old individual and brought him to the county Justice Center for processing.

While the victim was in medical intake, Mize approached the victim from behind and told the individual to stand. Mize then pushed the victim towards a holding cell, shoving the victim with such force that the victim collided headfirst with a concrete wall. The victim suffered bodily injury, including lacerations to his scalp and a leg fracture.

Depriving an individual of their civil rights while acting under color of law is a federal crime punishable by up to 10 years in prison if bodily injury results from the act. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Matthew W. McFarland. Assistant United States Attorneys Megan Gaffney Painter and Ebunoluwa Taiwo are representing the United States in this case.

# # #

DAYTON – A Burlington, Ky. woman pleaded guilty in U.S. District Court in Dayton today to aiding and abetting her daughter in intimidating a witness after the murder of her ex-son-in-law.

Chandra Harmon, 57, admitted to aiding and abetting the intimidation of a witness after the August 2017 murder of Robert Caldwell. Harmon and her daughter, Tawnney Caldwell, attempted to prevent the witness from providing testimony to law enforcement about weapons provided to a co-defendant. 

According to court documents, around 6pm on Aug. 15, 2017, Robert Caldwell and his three minor children left a counseling appointment in Riverside, Ohio. While crossing the parking lot, Robert Caldwell was shot multiple times by an assailant in front of his children and died at the scene. The assailant was later identified as co-defendant Sterling Roberts.

Tawnney Caldwell is the ex-wife of the murder victim and was the girlfriend of Sterling Roberts at the time of the incident. Chandra Harmon is Tawnney Caldwell’s mother and previous mother-in-law to Robert Caldwell.

Tawnney Caldwell and the murder victim had an ongoing dispute regarding the custody of their children and Tawnney Caldwell had talked to Sterling Roberts on at least two occasions (while Roberts was incarcerated in Montgomery County) about killing Robert Caldwell.

Sterling Roberts; his brothers, Chance Deakin and Christopher Roberts; Chandra Harmon (Tawnney’s mother); and James Harmon (Tawnney’s step-father) collaborated to plan, execute and cover-up the violent crime resulting in the death of Robert Caldwell.

Tawnney Caldwell pleaded guilty in October 2020 to interstate stalking resulting in death, and Roberts is scheduled for jury trial in U.S. District Court on March 15.

Harmon faces up to 20 years in prison for aiding and abetting the intimidation of a witness in this case. Her sentencing hearing is scheduled for 1:30pm on May 6.

David M. DeVillers, United States Attorney for the Southern District of Ohio, Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Riverside Police Chief Frank Robinson and Sugarcreek Township Police Chief Michael Brown announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Amy M. Smith and Assistant Deputy Criminal Chief Laura Clemmens are representing the United States in this case.

#  # #

COLUMBUS, Ohio – A Southeast Ohio doctor was sentenced in U.S. District Court today to 96 months in prison for illegally prescribing controlled substances and defrauding health care programs.

A federal jury convicted Roger D. Anderson, 66, of Marietta, in March 2020.

Specifically, Anderson was convicted of one count of conspiring to distribute controlled substances, eight counts of illegal dispensing of controlled substances and one count of committing health care fraud.

Anderson owned and operated Marietta Medical, which was located on Putnam Street in Marietta.

According to court documents and trial testimony, between January 2012 and March 2016, Anderson conspired with others to distribute opioids like oxycodone and hydrocodone outside the scope of medical practice and without a legitimate medical purpose.

Anderson pre-signed prescriptions for staff to complete and distribute to patients in his absence. Prescriptions were given to patients on days that Anderson did not examine them and by staff who were not legally qualified to give prescriptions. Further, the drugs would be distributed at a kiosk after hours inside the office complex Putnam Commons.

Anderson prescribed dangerous combinations of controlled substances, including those known as “Holy Trinity” (an opioid, a benzodiazepine and a muscle relaxant) and “Speedballs” (a stimulant and an opioid).

One patient received four prescriptions issued in the same day for 10 Fentanyl patches, 120 Xanax pills, 180 Oxycodone pills and 180 pills of the acetaminophen-hydrocodone mix Norco. On that same date, the patient already had two other overlapping prescriptions for Fentanyl issued by Anderson.

Additionally, Anderson conspired to and committed health care fraud, defrauding the Ohio Medicaid and Medicare programs. Anderson caused the submission of claims for controlled substance that were prescribed in violation of Federal law.

“Anderson ignored blatant red flags that his patients were abusing and diverting the opioids he prescribed,” U.S. Attorney David M. DeVillers said. “He prescribed opioids and benzodiazepines to a pregnant patient and was banned by pharmacies. Today’s sentence is another reminder that if you act like a drug dealer, we will prosecute you like one.”

“Instead of helping and healing, this doctor fueled drug addictions,” Ohio Attorney General Dave Yost said. “It’s appalling and I am thankful for the state and federal partnership that worked to stop this activity.”

David M. DeVillers, United States Attorney for the Southern District of Ohio; Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio Attorney General Dave Yost; Anthony Groeber, Executive Director, State Medical Board of Ohio; Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy; John Logue, Interim Administrator/CEO, Ohio Bureau of Workers Compensation; and Washington County Sheriff Larry Mincks announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley.

Assistant United States Attorney Kenneth F. Affeldt and Senior Litigation Counsel Douglas W. Squires represented the United States in this case.

# # #

COLUMBUS, Ohio – United States Attorney David M. DeVillers reiterated today that his office, in coordination with the Cincinnati Division of the FBI, will investigate any potential violations of federal crime at the United States Capitol Building on Jan. 6, 2021 committed by individuals from the Southern District of Ohio.

“We are in continual contact with the FBI and they are actively investigating,” DeVillers said. “There is no set timeframe for investigations to conclude.”

Individuals in the Southern District of Ohio with information related to the commission of federal crimes at the Capitol are asked to contact the FBI at 513-421-4310. Additionally, tips may be submitted to the FBI at fbi.gov/USCapitol.

DeVillers noted federal statutes that may be applicable, including:

• 18 United States Code section 231 – Civil Disorder, which prohibits adversely affecting any federally protected function or obstructing any law enforcement officer from the performance of official duties, punishable by up to five years in prison.
• 18 United States Code section 2101 – The Federal Riot Act, which applies to anyone who traveled interstate to incite, promote, or participate in a riot. This includes anyone who aided or abetted individuals who carried on a riot or committed a violent crime in furtherance of a riot. The crime is punishable by up to five years in prison.
• 18 United States Code section 2383 – Rebellion or insurrection. This law states that whoever incites, assists or engages in any rebellion or insurrection against the United States faces up to 10 years in prison.

“Investigations are ongoing, and we are unable to comment further at this time,” DeVillers said.

# # #

COLUMBUS, Ohio – A local man pleaded guilty in federal court in Columbus this morning to participating in a racketeering conspiracy on behalf of the transnational criminal organization MS-13.

In his plea, Juan Flores-Castro (also known as Juan Pablo Guerra-Flores and “Duende”), 32, of Columbus, accepts responsibility for committing murder and trafficking cocaine and marijuana on behalf of MS-13. 

Parties involved in Flores-Castro’s case have recommended a sentence of 35 to 40 years in prison.

The defendant is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment. He is the twentieth defendant to plead guilty.

The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.

Among other crimes, Flores-Castro is charged for his role in the December 2016 murder of Salvador Martinez-Diaz, a suspected rival 18th Street gang member. According to court documents, this homicide was carefully planned.  Just after 3am on Dec. 4, 2016, MS-13 members waited outside the apartment of Martinez-Diaz and opened fire on him with pistols, shooting him multiple times and killing him. The members of the transnational gang then disposed of evidence of their crime.  Flores-Castro admitted that he and other co-conspirators conducted surveillance of the victim, followed him home, and were in contact with the shooters in the moments leading up to the murder.

Flores-Castro pleaded guilty to one count of conspiracy to commit racketeering.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the guilty plea entered before U.S. District Judge Edmund A. Sargus, Jr.

Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.

# # #

COLUMBUS, Ohio – A Columbus man has agreed to plead guilty in a case involving the murder of a husband and wife in a local Internet café.

Desjuan R. Lee Harris, 25, offered his guilty plea in U.S. District Court today to two counts of robbery and two counts of brandishing a firearm during a crime of violence.

Harris and others were indicted by a federal grand jury in July 2019 for crimes related to a string of robberies of Internet gaming businesses, including one robbery at Players Paradise on East Broad Street that resulted in murder on Jan. 20, 2019.

Chris A. King, 25, is charged with three counts of murder (including the murder of a witness), and Dezhan Townsend, 21, and Justice B. Stringer, 25, are each charged with two counts of murder, which is a death-eligible crime.

According to court documents, Townsend, Stringer and King robbed the Internet café at gunpoint and allegedly murdered security guard Joseph Arrington and then his wife, employee Karen Arrington.

Harris was charged as a co-defendant for his role in two robberies at local Internet cafés prior to Jan. 20, 2019.

According to his plea, Harris and Townsend robbed Players Paradise at gunpoint on Dec. 10, 2018 and fled with $30,000 in cash.

On Jan. 7, 2018, Harris and others committed armed robbery at Planet Jackpot on Alum Creek Drive. During that robbery, they stole approximately $2,400 in cash.

Robbery is a crime punishable by up to 20 years in prison. Brandishing a firearm during a crime of violence involves a mandatory sentence of at least seven years on each count, to be served consecutively to any other sentence imposed. Congress sets the minimum maximum statutory sentence, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Thomas Quinlan and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorneys Kevin W. Kelley and Elizabeth A. Geraghty are representing the United States in this case.

# # #

“After speaking with Mayor Ginther and Ohio Attorney General Yost, I was informed that BCI was immediately notified of the fatal officer-involved shooting that occurred early yesterday. BCI is investigating this matter, as is policy with all shootings involving Columbus Division of Police.  The mayor requested that the U.S. Attorney’s Office review the investigation for possible federal civil rights violations, and after consulting with Ohio Attorney General Yost, I agreed that my office will review the case as requested once BCI’s investigation is complete. This office will then consult with the Franklin County Prosecutor’s Office on how to proceed at the conclusion of our review.”

COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today his selections for annual awards for outstanding performance, new management appointments, and his district’s recipients of national director’s awards.

“There are so many employees – this year in particular – who are worthy of recognition. A lot of people have stepped up this year and performed their jobs in an extraordinary manner during a challenging time,” U.S. Attorney DeVillers said.

Mr. DeVillers presented seven internal awards.

Senior Litigation Council Douglas W. Squires was awarded Outstanding Performance by an Assistant U.S. Attorney. Mr. Squires was recognized for prosecuting a number of complex cases, including white collar and national security matters.

Outstanding Contribution to the Mission of the U.S. Attorney’s Office was awarded to Elizabeth Rabe, Andrew Hunt, Amy Smith, Ali Gezinski, Cathy Robillard, Leslie Ide and Acquanette Lindsay. The group was recognized for their action in response to the November 2019 shooting death of Dayton Police Detective and DEA Task Force Officer Jorge Del Rio. The U.S. Attorney’s Office is currently prosecuting a number of related cases, and has filed murder, firearms and narcotics charges.

Cathy Robbilard was named as the recipient of the Outstanding Performance in Legal Support award for her work in handling the discovery in a number of murder cases in the Dayton office.

Administrative Officer Jessica Gourley was honored with the Outstanding Performance in Administration award this year. Ms. Gourley has led the district’s administrative team in keeping each of the district’s three offices functioning while safely addressing the Coronavirus pandemic.

Lillian Curtis was awarded Outstanding Performance by a Contract Employee. Ms. Curtis manages GSA requirements and the physical space of the Dayton office, where she primarily serves as the front desk receptionist.

Kevin Koller was recognized for his contributions to the district’s Appellate Division. Mr. Koller was involved in 29 appellate cases in some capacity in 2020, including two published decisions.

John Stark and Angela Trumbauer were recognized for their contributions to the district’s Civil Division, including managing demanding caseloads.

The United States Attorney also announced his appointments for three management positions, to be filled upon the retirement of Civil Chief Mark T. D’Alessandro and Assistant Deputy Criminal Chief Gary Spartis. Mr. D’Alessandro served the U.S. Attorney’s Office for 25 years, and Mr. Spartis for more than 33 years.

“These men are true public servants. They are humble, hard workers who dedicated their careers to the pursuit of justice for the citizens of the Southern District of Ohio,” U.S. Attorney DeVillers said. “Without a doubt, our district is better because of them.”

The new management selections include:

• Civil Chief – Matthew Horwitz,
• Deputy Civil Chief – Andrew M. Malek, and
• Assistant Deputy Criminal Chief – Jessica W. Knight

Mr. Horwitz  joined the U.S. Attorney’s Office as a Civil AUSA in December 2012.  In May 2014, Matt was designated the District’s Deputy Civil Chief, and he held that position until October 2020, when he became the District’s Civil Chief. 

Mr. Malek has served as an Assistant United States Attorney for the Southern District of Ohio since 2002.  He has served as the Affirmative Civil Enforcement Coordinator for the District since 2008, was appointed as a Senior Trial Counsel, and previously worked as an AUSA on defensive civil matters. 

Ms. Knight joined the Southern District of Ohio as an Assistant United States Attorney in Cincinnati in 2012. She currently serves in the Columbus office and focuses on national security and white collar crime.

Finally, two district employees were selected this year as recipients of the Department of Justice 2020 Director’s Awards by the Executive Office of United States Attorneys in D.C. They include:

• Superior Performance as an Assistant United States Attorney, Appellate – Mary Beth Young

Appellate Chief Young was recognized for successfully handling the appeal in the Columbus office’s Short North Posse prosecution, U.S. v Ledbetter et al. Ms. Young’s appellate work preserved life sentences for five members, including the de facto leader of the violent gang. The combined appeal raised 15 distinct claims.

• Superior Performance in Public Affairs – Jennifer Thornton

Public Affairs Officer Jennifer Thornton was recognized for clearly and accurately coordinating local, national and international media coverage of hundreds of cases and issues in the Southern District of Ohio. This included managing media surrounding cases and events like the United States’ first extradition of an alleged Chinese spy, federal charges arising out of the August 2019 mass shooting in Dayton, a priest from Cincinnati accused of sexually exploiting children in the Philippines, and others.

“I can’t imagine a more difficult time to do our job, and every single person in our district has met the challenge. Even with one arm tied behind our back, we’re working to make a difference and seek justice for the people in the Southern District of Ohio,” DeVillers added.

# # #

“As the United States pursues a full and fair investigation into the death of Casey Goodson, Jr., I want to make clear that there is one criminal investigation underway through the United States Attorney’s Office for the Southern District of Ohio. It is a joint criminal civil rights investigation being conducted by the FBI, the Columbus Division of Police, and the Department of Justice Office of the Inspector General. We are working in partnership with the Civil Rights Division of the Department of Justice and the Franklin County Prosecutor’s Office. We are obligated to follow the facts wherever they may lead. I have been in contact with current Franklin County Prosecutor, Ron O’Brien, and incoming Franklin County Prosecutor, Gary Tyack. We are in agreement that the facts and the law could lead to federal charges, to state charges, or to no charges at all. This is an ongoing investigation and no determination of whether any charges—federal or state—are warranted has been made. 

Our goal is to conduct a thorough and accurate investigation without compromising the integrity and legitimacy of the investigation. This means we must balance the public’s interest in the investigation with a potential defendant’s right to a fair trial. Disclosing information prematurely or releasing potentially challenged evidence could severely jeopardize the investigation and any possible prosecution.

I met with the family of Mr. Goodson last week and I explained this delicate and critical balance. Mr. Goodson’s family made it clear that they are putting their trust in us to discharge our responsibilities fully and fairly. We intend to do everything in our power to honor that trust.”

# # #

CINCINNATI – An Ohio man who pretended to be a missing Illinois boy was sentenced in U.S. District Court here today to 24 months in prison for aggravated identity theft.

Michael Rini, 24, formerly of Medina, Ohio, was charged by criminal complaint on April 6, 2019 and indicted by a grand jury on April 18, 2019. He pleaded guilty in January 2020.

According to court documents, Newport, Ky. police officers responded to a call on April 3, 2019 in which the caller described Rini as wandering the street, looking confused and in need of assistance.

Rini told officers his name was a minor who had been abducted when he was six years old and he “just wanted to go home.”

Local authorities confirmed that the identity Rini provided was associated with a missing and possibly abducted child. Specifically, in 2011, the then six-year-old boy went missing from Aurora, Ill.

Posing as the missing child, Rini claimed he was 14 and had recently escaped from a hotel room in which two men had been holding him captive. He said he had been sexually and physically abused for years while in captivity and that he was having abdominal pain.

Rini was transferred to Cincinnati Children’s Hospital Emergency Room because of the complaint of abdominal pain, and there, FBI task force officers met with Rini to potentially investigate sex trafficking and crimes against children. FBI special agents and a detective from the Aurora, Ill. police department also spoke with Rini.

Rini continued to claim to be the missing boy throughout conversations in the hospital. He refused to provide his fingerprints to investigators at Children’s Hospital; however, eventually, he agreed to submit a buccal swab for DNA testing.

DNA test results confirmed Rini’s identity. As a prior felon, Rini’s DNA was known to the FBI. Ohio Department of Corrections records indicate Rini was released from an Ohio prison on March 7, 2019.

Once law enforcement officers confronted Rini about his true identity, Rini immediately stated he was not the missing child. He said he watched a story about the child on 20/20 and stated he wanted to get away from his own family.

Further investigation by the FBI found that Rini had allegedly portrayed himself as a juvenile sex trafficking victim on two prior occasions. In those instances, he was only identified once he was fingerprinted.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Robert Brown, Special Agent in Charge, FBI, Louisville, Ky. Division; Cincinnati Police Chief Eliot K. Isaac; Newport Police Chief Thomas Collins; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Hamilton County Coroner Dr. Lakshmi Sammarco; Hamilton County Sheriff Jim Neil and officials with the Aurora, Ill. Police Department announced the sentence imposed today by U.S. District Judge Michael R. Barrett. Assistant United States Attorney Kyle J. Healey and Deputy Criminal Chief Christy L. Muncy are representing the United States in this case.

# # #

COLUMBUS, Ohio – A former Dublin, Ohio man pleaded guilty in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.

Yu Zhou, 50, also pleaded guilty to conspiring to commit wire fraud.

Zhou admitted to conspiring to steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain in China.

“The Chinese government has created a large-scale, sophisticated system to steal American ingenuity,” U.S. Attorney David M. DeVillers said. “We hope this conviction demonstrates that we will fight this system.”

“Zhou and his wife have both accepted responsibility for establishing a company in China to personally profit from the cutting-edge work done at Nationwide Children’s Hospital,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to work closely with our partners to protect the innovations that have made America a global leader.”

Zhou and his wife, Li Chen, 47, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They conspired to steal trade secrets related to exosome research from Nationwide Children’s Hospital.

Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.

According to his plea agreement, Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.

The defendants admitted to starting a company in China to sell the isolation kits. They received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China.

Zhou and Chen were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Chen pleaded guilty in July 2020 to conspiring to steal trade secrets and commit wire fraud.

As part of their pleas, the couple has agreed to forfeit property or gains associated with their crimes.  For Chen, this included approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. The details of Zhou’s forfeiture will be finalized through the sentencing process. A sentencing date has not been set yet for either defendant.

David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.

# # #

A former Dublin, Ohio, man pleaded guilty in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.

Yu Zhou, 50, also pleaded guilty to conspiring to commit wire fraud.

Zhou admitted to conspiring to steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain in China.

“Today’s plea underscores the Department of Justice’s commitment to protecting American research and trade secrets from those incentivized to steal them by Chinese Government programs,” said John C. Demers, Assistant Attorney General for National Security.  “China’s endemic efforts to rob, replicate and replace products that they do not have the ability to develop themselves will not go unchecked, and those who seek to profit from the theft of trade secrets will be held accountable.”

“The Chinese government has created a large-scale, sophisticated system to steal American ingenuity,” U.S. Attorney David M. DeVillers said. “We hope this conviction demonstrates that we will fight this system.”

“Zhou and his wife have both accepted responsibility for establishing a company in China to personally profit from the cutting-edge work done at Nationwide Children’s Hospital,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to work closely with our partners to protect the innovations that have made America a global leader.”

Zhou and his wife, Li Chen, 47, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They conspired to steal trade secrets related to exosome research from Nationwide Children’s Hospital.

Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.

According to his plea agreement, Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.

The defendants admitted to starting a company in China to sell the isolation kits. They received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China.

Zhou and Chen were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Chen pleaded guilty in July 2020 to conspiring to steal trade secrets and commit wire fraud.

As part of their pleas, the couple has agreed to forfeit property or gains associated with their crimes.  For Chen, this included approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. The details of Zhou’s forfeiture will be finalized through the sentencing process.

David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.

COLUMBUS, Ohio – In a False Claims Act Settlement signed this week, two eastern Ohio psychiatrists and their practice group have agreed to pay more than $500,000 to the United States for submitting false claims to Medicare.

According to the settlement, Drs. Ali and Imad Melhelm submitted claims to Medicare from January 2013 through December 2019 that violated the False Claims Act. The doctors are practicing psychiatrists with Neurobehavioral Medicine Consultants, PC, Inc. (NMC), which provides mental health services and substance abuse treatments to patients in several states. Dr. Ali Melhelm is the owner of NMC. Both individuals served as treating psychiatrists at Cambridge Behavioral Hospital in Guernsey County. Ali Melhelm also served as the inpatient facility’s Medical Director.

The United States asserted that the doctors admitted medically ineligible patients to the hospital, improperly delayed patient discharges, and billed for services and visits that did not occur or were billed at a higher rate than was supported by the records.

As part of the settlement, the Melhelms will pay $549,092 to the United States, of which $274,546 is restitution.

Assistant United States Attorneys Andrew M. Malek, Brandi Stewart and Michael Downey are representing the United States in this case.

# # #

COLUMBUS, Ohio – The former comptroller of the Catholic Diocese of Steubenville was sentenced in federal court in Columbus today for failing to pay payroll taxes withheld from the paychecks of diocesan employees, filing false tax returns and embezzling $299,500 in diocesan funds between 2008 and 2017.

David A. Franklin, 67, pleaded guilty in U.S. District Court in July 2020 to one count of willful failure to account for and pay over employment tax, one count of making a false income tax return and one count of wire fraud. Today Franklin was sentenced to 12 months and one day in prison and two years of supervised release, and was also ordered to pay $1,332,885.04 in restitution.

According to court documents, from 2004 through 2016, Franklin caused payroll taxes to be withheld from employee paychecks for the Diocese of Steubenville and the Office of Social Ministry (a social services and charitable nonprofit in the Diocese), but did not pay the withheld funds over to the Internal Revenue Service. From 2013 through 2016, Franklin did the same thing at the Mount Calvary Cemetery Association.

As a result, the three Diocesan Entities later paid the IRS more than $2.7 million in withheld payroll taxes and the employer portion of the employment taxes that Franklin had caused not to be paid over. The Diocesan Entities also had to pay nearly $1 million in interest and penalties to the IRS that they otherwise would not have had to pay.

While he was failing to truthfully account for and pay over payroll taxes, Franklin also embezzled $299,500 from the Diocesan Entities by preparing fraudulent checks to be issued to himself. For four tax years, Franklin also filed false personal income tax returns, causing tax losses of more than $33,000.

The Court ordered Franklin to pay more than $1.3 million in restitution. Restitution will go to the Diocese of Steubenville, the Office of Social Ministry, the Mount Calvary Cemetery Association, and the IRS. Franklin was also ordered to forfeit the nearly $300,000 he embezzled.

“The Diocesan Entities provide support to individuals and families, youth educational programs, a thrift store, an emergency food bank and more,” U.S. Attorney David M. DeVillers said. “Franklin’s actions cost the Diocese – and the community – $1.3 million. Today’s sentence and restitution order show that, in the long run, it does not pay to cheat the government or embezzle. Not only will you be left without your criminal proceeds, you’ll spend time in prison.”

U.S. Attorney DeVillers and IRS-Criminal Investigation Special Agent in Charge Bryant Jackson announced the sentence imposed by U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Peter K. Glenn-Applegate and Special Assistant U.S. Attorney and Jefferson County Prosecuting Attorney Jane Hanlin are representing the United States in this case.

# # #

COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today the U.S. Attorney’s Office – in coordination with the Civil Rights Division of the Department of Justice, the Cincinnati Division of the FBI and the Columbus Division of Police – will review the facts and circumstances surrounding the Dec. 4, 2020 shooting of Casey Goodson and take appropriate action if the evidence indicates any federal civil rights laws were violated.

As this matter is ongoing, we are unable to provide further comment at this time.

# # #

COLUMBUS, Ohio – Shottuan Deshawn Galloway, aka “Pablo”, 27 of Columbus was sentenced in U.S. District Court today to 120 months in prison for distributing methamphetamine in Columbus.

A multi-agency investigation into meth trafficking in west Columbus gathered evidence in August 2019 that Galloway was selling meth. The evidence included an undercover agent purchasing meth from Galloway in a restaurant parking lot. A grand jury indicted Galloway in November 2019. Galloway was ordered held without bond following his indictment. He pleaded guilty before U.S. District Judge Sarah D. Morrison on August 11, 2020 to one count of distributing more than 50 grams of meth. Judge Morrison imposed the sentence today. The sentence includes five years of court supervision after Galloway serves his prison time. Judge Morrison also ordered Galloway to receive substance abuse treatment while in custody.

Another person indicted along with Galloway, Jharen Page, 32, of Columbus, was sentenced on October 27, 2020 to 151 months in prison after pleading guilty to conspiracy and distribution of meth. Charges are pending against a third defendant.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Columbus Police Chief Thomas Quinlan announced the sentence. In addition, the police departments in Upper Arlington and Westerville, the Franklin County Sheriff’s Office and the Ohio State Highway Patrol are part of the investigation. Assistant United States Attorney Sheila Lafferty is representing the United States in this case.

# # #

CINCINNATI – A Cincinnati man alleged to be seeking babysitting jobs online was arrested yesterday afternoon and charged federally with possessing and transporting child pornography.

Ryan J. McConnell, 29, appeared in U.S. District Court for an initial appearance at 1:30pm today, at which time his case was unsealed.

According to court documents, FBI agents in El Paso, Texas, acting in an undercover capacity on Kik messenger discovered McConnell through a group called “Toddlers.” Members within this group distributed hundreds of videos and images of child rape.

It is alleged McConnell’s phone contained child pornography depicting pre-pubescent and pubescent boys engaged in sexually explicit conduct while wearing diapers.

Additionally, it is alleged McConnell actively sought work as a babysitter from approximately 2010 until present on a number of websites, including SitterCity.com, Care.com, Craigslist.org and possibly others. For example, criminal complaint documents allege McConnell was registered for three SitterCity accounts and had created at least 20 Craigslist ads offering childcare and/or babysitting services as recently as late October 2020.

The FBI believes that there are potentially more victims associated with this case. They ask anyone in the Tri-State area who may be a victim of McConnell’s alleged conduct to contact their office at 513-979-8611.

Transporting child pornography is a federal crime punishable by a mandatory minimum of five years and up to 20 years in prison. Possessing child pornography carries a potential maximum of 10 years in prison.

David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.

A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

# # #

COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today the Fentanyl in Narcotic Drugs Awareness Project (FIND Awareness Project), a messaging campaign aimed at warning the public that any drug cut with fentanyl is deadly.

In 2020, at least 84 percent of overdose deaths in Franklin County involved fentanyl. From January through June 2020, overdoses increased more than 73 percent when compared to the same time period in 2019.

The FIND Awareness Project includes billboards that will be placed in the Columbus zip codes experiencing the highest rates of overdose deaths. The billboards warn users of the recently increasing prevalence of fentanyl in stimulants like cocaine and methamphetamine and in pressed pills like street Oxy and Xanax. The signs also encourage the public to learn more about treatment and resources at FINDawarenessproject.com and FindTreatment.gov.

Targeted social media ads and sites will link individuals to a treatment database searchable by community, overdose statistics, information about law enforcement initiatives and outreach, and a way to report suspected drug activity.

“We will go after the cartels from every angle, and we will continue to investigate and prosecute high-level drug dealers,” U.S. Attorney DeVillers said. “At the same time, we also hope to reduce demand for their products by encouraging people to save their lives and seek treatment. Addiction does not have to be deadly.”

The U.S. Attorney’s Office created the campaign with funding from the Ohio High Intensity Drug Trafficking Area (HIDTA) and assistance from Franklin County Coroner Dr. Anahi Ortiz and Columbus City Attorney Zach Klein.

# # #

COLUMBUS, Ohio – Solomon K. Gebretekle, 22, of Columbus, was sentenced in U.S. District Court today to 200 months in prison for distributing methamphetamine and heroin in and around Charleston, W.Va.

According to court documents, Gebretekle (also known as Diablo), regularly traveled from Ohio to West Virginia to sell narcotics to drug seekers there. After being arrested on a federal criminal complaint in January 2019, Gebretekle continued to direct the drug operation from jail.

In intercepted jail calls, Gebretekle gave specific instructions to a co-conspirator in order to further his drug business. In one jail call, Gebretekle threatens one of his narcotics customers regarding the explicit consequences he faced if the customer did not pay his drug debt to the defendant.

Gebretekle pleaded guilty in March 2020 to conspiring to possess with the intent to distribute more than 50 grams of methamphetamine and more than 100 grams of heroin. He also pleaded guilty to a substantive count of possessing the more than 50 grams of methamphetamine.

Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Roland Herndon, Special Agent in Charge, U.S. Alcohol, Tobacco, Firearms and Explosives (ATF),  announced the sentence imposed today by U.S. District Court Judge Michael H. Watson. Assistant United States Attorney Salvador A. Dominguez is representing the United States in this case, and the Charleston, W. Va. DEA field office assisted in the investigation.

# # #

DAYTON, Ohio – A 22-year-old Dayton man was sentenced in U.S. District Court here today for committing at least five armed robberies.

Marquice Murray was sentenced to 230 months in prison for robbing local cell phone stores and retail establishments at gunpoint.

According to court documents, in December 2019, Murray brandished a firearm while robbing the Boost Mobile store on West Third Street in Dayton. After committing the robbery, Murray fled the store and, as a security guard actively pursued him, discharged a 9mm handgun toward the security guard.

Murray brandished firearms on at least four other occasions while committing robbery. He robbed the Boost Mobile on North Main Street in Dayton twice, in October and November 2019. He committed armed robbery at two different Family Dollar Stores (on Salem and Siebenthaler avenues in Dayton) in December 2019.

Murray pleaded guilty in August 2020 to brandishing and discharging a firearm during a crime and to illegally possessing a firearm as a convicted felon.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Dayton Police Chief Richard S. Biehl announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.

# # #

CINCINNATI – Former Cincinnati City Council president pro tem Tamaya Dennard, 41, was sentenced today in U.S. District Court to 18 months in prison for accepting $15,000 in bribe money she sought and accepted as payment in exchange for her vote on a proposal before council.

“Dennard chose to enrich herself at the expense of the public,” said U.S. Attorney David M. DeVillers said. “In doing so, she violated the public’s trust in her and also undermined our democratic values and institutions. She also earned herself time in federal prison.” 

Dennard pleaded guilty in June 2020 to one count of honest services wire fraud.

According to court documents, in August 2019, Dennard contacted someone she knew who had business before the Cincinnati City Council and sought money, including by sending the individual a text message saying, “If you are willing to meet with me, I’m sure that I will be able to help you.” Dennard received $10,000 on September 9, 2019 and $5,000 in cash about two weeks later in exchange for promising to provide and providing favorable official action.

Her sentence includes a $15,000 money judgment against her and three years of supervised release following imprisonment. Dennard was ordered to report to prison in March 2021.

“When public officials engage in corruption, trust in government is eroded and the entire community suffers,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to root out corruption and hold public officials accountable for their unlawful actions.”

David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the sentence imposed by U.S. District Judge Susan J. Dlott. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew Singer are representing the United States in this case.

# # #

CINCINNATI – Nineteen Cincinnati men and one woman were charged federally in a second wave of cases related to reducing local gun violence. Six of the defendants were arrested late last week and over the weekend, and 13 were already in state custody. One defendant remains a fugitive.

U.S. Attorney David M. DeVillers, ATF Special Agent in Charge Roland Herndon, Cincinnati Police Chief Eliot K. Isaac and Hamilton County Sheriff Jim Neil announced the cases as the latest enforcement as part of a gun violence reduction initiative. In late September, the officials announced gun-related charges filed against 16 other individuals in Cincinnati.

The aim of the initiative is to identify repeat and dangerous offenders for federal prosecution.

“Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories, including being a felon, convicted of a misdemeanor domestic violence offense or under a court authorized restraining order. These crimes can be punished by up to 10 years in federal prison,” said U.S. Attorney David M. DeVillers. “It is our hope that concentrating on this sector of the criminal population will have an impact on reducing the unprecedented level of violence occurring in Cincinnati.”

Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. Defendants convicted of these crimes face a mandatory minimum of five years and up to life in prison.

Those charged include:

Name

Age

Myrick Barber

23

Darrel Berry

20

Recardo Brooks

40

Jarred Cotton

32

*Orlando Crawford

42

Miles Ford

35

Donte Graves

37

Tarrell Gross

41

Lamont Holly

26

Deion Jennings

26

Kelsey Klopp

24

Brandon Mathews

29

Harold Moore

27

Tamon Sheldon

30

Donovan Shorter

27

Ryan Stoll

23

Charles Sullivan

28

Antonio Thomas

32

Airon Watson

28

Yancey White

34

“ATF’s primary mission is to identify individuals who are harming our communities through acts of violence,” stated Roland Herndon, ATF’s Special Agent in Charge for the Columbus Field Division. “These indictments are just one phase of these efforts. Be aware, if you choose to use firearms to commit crimes, ATF and our law enforcement partners will be there as always, working to hold you accountable for those acts.”

“These indictments are an example of our continued effort to work with our Federal partners to hold people accountable for harming our community through gun violence,” said Police Chief Eliot K. Isaac.

Nineteen of the defendants are charged with illegally possessing a firearm as a convicted felon. Darrel Berry is charged only with possessing a firearm in furtherance of a drug-trafficking crime and Antonio Thomas is charged with possessing a firearm in furtherance of a drug-trafficking crime in addition to possessing a firearm as a convicted felon.

Jennings, Klopp, Mathews, Sullivan, Thomas and White were arrested in the past four days.

Crawford remains a fugitive. His criminal history includes involuntary manslaughter, aggravated armed robbery and aggravated robbery, domestic violence and drug trafficking.

Law enforcement officials ask the public to call 1-888-ATF-TIPS with any information regarding Crawford’s whereabouts. The ATF is offering a $2,500 reward for information leading to the arrest of Crawford.

Indictments and criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.

# # #

CINCINNATI – FBI agents arrested a Cincinnati city council member this morning after a federal grand jury charged him in a sealed indictment yesterday.

Alexander (also known as P.G.) Sittenfeld, 36, of Cincinnati, allegedly accepted eight checks totaling $40,000 in exchange for specific action in his role as a city official.

According to the six-count indictment, Sittenfeld accepted bribe money in 2018 and 2019, while promising to “deliver the votes” and perform other official action with respect to a development project before city council.

It is alleged that Sittenfeld corruptly solicited and received payments to a PAC he controlled.

Specifically, in November and December 2018, Sittenfeld promised he could “deliver the votes” in city council to support a development project in exchange for four $5,000 contributions to his PAC. It is alleged that Sittenfeld again corruptly accepted four $5,000 checks in September and October 2019.

For example, the indictment details that in November 2018, Sittenfeld indicated to undercover agents posing as investors that he would shepherd votes for the development project. He allegedly presented voting data showing that he is politically popular throughout Cincinnati and said he is likely to be the next mayor. Sittenfeld said, “I can move more votes than any other single person…,” according to the indictment. He allegedly reiterated in December 2018, “don’t let these be my famous last words, but I can always get a vote to my left or a vote to my right.”

Over the next several months, it is alleged Sittenfeld told the investors he was continuing to apply pressure, and promised to apply additional pressure, to public officials relating to their agreement involving the development project.

Sittenfeld is charged with two counts each of honest services wire fraud (up to 20 years in prison), bribery (up to 10 years) and attempted extortion by a government official (up to 20 years).

His initial appearance is scheduled for 1:30pm today.

David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

# # #

COLUMBUS, Ohio – David M. DeVillers, United States Attorney for the Southern District of Ohio, today announced that state, local and college police departments in Ohio must meet new safe policing standards regarding use of force, performance management and community engagement if they intend to apply for discretionary grants from the U.S. Department of Justice.

The new standards are a result of President Trump’s June Executive Order 13929, Safe Policing for Safe Communities.

The Executive Order requires that law enforcement agencies be certified by independent credentialing agencies. The Ohio Office of Criminal Justice Services (OCJS) and the Ohio Collaborative Law Enforcement Certification Program has been selected as the independent credentialing agency for Ohio.

“Following these standards will make sure that law enforcement agencies in the Southern District of Ohio are using safe practices and have policies in place to ensure transparent, safe and accountable services to our communities,” DeVillers said. “We are working with OCJS and reaching out to law enforcement agencies throughout the District to make them aware of the new standards and the certification process.”

The President’s Order requires agencies to meet two standards in order to be successfully credentialed: 1) that the agency’s use of force policies prohibit chokeholds, except in situations where the use of deadly force is allowed by law; and 2) that the agency’s use of force policies adhere to all applicable federal, state, and local laws.

The Department’s certification standards encourage an independent assessment of law enforcement policies and procedures, such as: 1) training protocols on use of force; 2) training protocols on de-escalation; 3) the scope of an officer’s duty and obligation to intervene in order to prevent excessive force by another officer; 4) when and how an officer should provide appropriate medical care; 5) officers identifying themselves as law enforcement and giving verbal warning of their intent to use deadly force; and 6) shooting at or from a moving vehicle. Additionally, law enforcement agencies are encouraged to implement early intervention systems to promote officer wellness and to identify officers who may be at risk of violating use of force policies, policies and procedures to help them recruit and promote the best and brightest, and community engagement plans to address each community’s specific needs.

By January 31, 2021, agencies must have received certification or be in the process of getting certified if they plan to apply for discretionary grants, sometimes known as competitive grants, during this fiscal year.

#  # #

DAYTON – Nadine Consuelo Jackson, 32, of Dayton, Ohio, pleaded guilty before U.S. District Judge Michael J. Newman today to wire fraud related to two coronavirus relief Paycheck Protection Program loans.  She also pleaded guilty to making a false statement to a bank within the jurisdiction of a federal agency related to financial assistance for businesses who are suffering the economic effects caused by the COVID-19 pandemic. 

According to court records, Consuelo Jackson fraudulently sought forgivable loans in the amount of $1.3 million and $1.2 million from the Small Business Administration by claiming to have 73 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC.  In actuality, there were few to no other employees working at Extract LLC. Consuelo Jackson also allegedly submitted false tax documents in support of her fraud.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 27, 2020 designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through a program referred to as the Paycheck Protection Program (PPP). In April 2020, Congress authorized more than $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with an interest rate of one percent.  PPP loan proceeds must be used by the business on certain permissible expenses like payroll costs. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds on payroll expenses.  The amount of PPP funds a business may receive is determined by multiplying its average monthly payroll costs incurred during a specified period.

In Ohio, licensed Class A private investigation and security services businesses must register any employees of their business with the state. The only employee listed for Extract LLC is Nadine Jackson, named as an “Investigator/Caregiver.”

According to court documents, on two occasions Consuelo Jackson listed 73 Extract LLC employees with payroll wages totaling approximately $500,000 on loan application reports. Loans totaling more than $1 million were initially wired to Consuelo Jackson’s accounts and then flagged.  The bank recalled one loan and the Government seized the other.

Court documents say Consuelo Jackson also applied for and received more than $46,000 in Economic Injury Disaster loan funding. It is alleged in her loan application, Consuelo Jackson stated Extract LLC had 8 employees.  She then wired the funds in five transactions to another account. A seizure warrant was obtained to seize that money as well.

According to court documents, four “employees” named on Consuelo Jackson’s applications were interviewed by agents and stated they did not work for the company. Three of the individuals interviewed stated they had never heard of Extract LLC.

Consuelo Jackson has agreed to forfeit $1,290,817.00 to the U.S. Government as a result of her crimes.

Wire fraud is a crime punishable by up to 20 years in prison. Making a false statement within the jurisdiction of a federal agency carries a potential maximum sentence of 5 years in prison.

David M. DeVillers, United States Attorney for the Southern District of Ohio, Donald Abram, Special Agent in Charge, Small Business Administration Office of the Inspector General (SBA-OIG), and Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI) announced the charges. Assistant United States Attorneys Elizabeth R. Rabe and Peter K. Glenn-Applegate are representing the United States in this case.

# # #

COLUMBUS, Ohio – A former United States Postal Carrier was sentenced in U.S. District Court today to 24 months in prison for stealing mail parcels that contained narcotics and then selling those narcotics in his neighborhood.

Ricky Lee Harris Germany, 33, of Columbus, pleaded guilty in September 2019 to one count of conspiring to possess with intent to distribute more than 500 grams of methamphetamine and a detectable amount of marijuana.

According to court documents, Germany had been employed as a city postal carrier at the United States Postal Service’s Oakland Park Station in Columbus from 2013 until 2018.

In September 2018, investigators received information that Germany had stolen mail parcels containing marijuana while employed as a postal carrier. According to a complainant, Harris Germany stole more than 100 pounds of marijuana over the course of six months. The complainant stated Harris Germany would look for large parcels from California, Texas and Arizona and would check the packages on his lunch break to see if they contained drugs.

The investigation revealed Germany intercepted mail parcels on multiple occasions from delivery routes other than his assigned route. During a search of his residence, investigators discovered opened packages containing marijuana, THC oil and methamphetamine.

Germany admitted to stealing mail coming from out of state and selling stolen narcotics to people in his neighborhood.

Kenneth Cleevely, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG) Eastern Area Field Office, stated: “Postal employees are paid to deliver the mail, not steal from it and sell drugs in our community. When employees like Germany choose to use their position to go into the drug dealing business, Special Agents with the USPS OIG will work with our law enforcement partners to arrest them and put them in federal prison. To report crimes committed by postal employees, or to report drug dealers using the postal system, contact us at www.uspsoig.gov or 888-USPS-OIG.”

David M. DeVillers, United States Attorney for the Southern District of Ohio, and Special Agent in Charge Cleevely announced the sentence imposed by Chief U.S. District Court Judge Algenon L. Marbley. Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.

Assistant United States Attorney Jonathan J.C. Grey represented the United States in this case.

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COLUMBUS, Ohio – A Columbus man has been charged federally with illegally possessing a firearm as a convicted felon.

The charge was filed against Angelo S. Blackwell, 22, this afternoon. Blackwell has a prior burglary felony offense at the local level, as well as two currently pending firearms charges.

According to an affidavit filed in support of the criminal complaint, on Nov. 12, special agents and task force officers with ATF were conducting surveillance related to an ongoing investigation into two armed carjackings and a burglary of a Federal Firearms Licensee (FFL) that resulted in the theft of 16 firearms. 

Officers conducted a traffic stop of Blackwell when he allegedly fled in his vehicle, according to the court document.

The affidavit details that while fleeing from the officers, Blackwell was traveling west on E. Fulton Street and made a left hand turn (southbound) on Kelton Ave., which is a one way, northbound street. Just through the turn it is alleged Blackwell collided with a vehicle driven by an ATF agent who was traveling northbound on Kelton Ave.

According to the affidavit, Blackwell was observed in possession of a firearm. He allegedly jumped out of the vehicle and began to run with the firearm visible in his right hand, in the direction of other uniformed CPD officers and citizens. An ATF agent fired his weapon and struck Blackwell.

The agent’s use of force will be subject to routine review by the ATF’s Force Review Branch in D.C. and by the Columbus Division of Police’s Critical Incident Response Team.

A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

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COLUMBUS, Ohio – A rheumatology professor and researcher with strong ties to China pleaded guilty to making false statements to federal authorities as part of an immunology research fraud scheme.

Song Guo Zheng, 58, of Hilliard, appeared in federal court today, at which time his guilty plea was accepted by Chief U.S. District Judge Algenon L. Marbley.

As part of his plea, Zheng admitted he lied on applications in order to use approximately $4.1 million in grants from the National Institutes of Health (NIH) to develop China’s expertise in the areas of rheumatology and immunology.

Zheng was a professor of internal medicine who led a team conducting autoimmune research at The Ohio State University and Pennsylvania State University. According to his plea, Zheng caused materially false and misleading statements on NIH grant applications, seeking to hide his participation in Chinese Talent Plans and his affiliation and collaboration with a Chinese university controlled by the Chinese government. Making false statements to the federal government is a crime punishable by up to five years in prison.

Zheng was arrested Friday, May 22, 2020, after he arrived in Anchorage, Alaska, aboard a charter flight and as he prepared to board another charter flight to China. When he was arrested, he was carrying three large bags, one small suitcase and a briefcase containing two laptops, three cell phones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items.

He was transported to the Southern District of Ohio and made his first federal court appearance in Columbus on July 7, 2020.

“Federal research funding is provided by the American tax payers for the benefit of American society—not as a subsidy for the Chinese Government,” said Assistant Attorney General for National Security John Demers. “The American people deserve total transparency when federal dollars are being provided for research, and we will continue to hold accountable those who choose to lie about their foreign government affiliations in an attempt to fraudulently gain access to these funds.”

“The FBI and its partners are a unified front in protecting taxpayer-funded research, so there is no escape for those who break America’s laws. Whether it’s a midnight flight through Alaska or hiding in plain sight, we will find you and bring you to justice,” stated Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division.

“Zheng promised China he would enhance the country’s biomedical research. He was preparing to flee the United States after he learned that his American employer had begun an administrative process into whether or not he was complying with American taxpayer-funded grant rules,” said David M. DeVillers, U.S. Attorney for the Southern District of Ohio. “Today’s plea reinforces our proven commitment to protect our country’s position as a global leader in research and innovation, and to punish those who try to exploit and undermine that position.” 

“The FBI and our law enforcement partners continue to engage with universities to protect sensitive research from being illegally transferred to foreign governments,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “Today's plea represents an acknowledgement by Zheng not only of his violation of the trust given to him by the U.S. government in the form of federal grant funds, but also of norms for research integrity and an abuse of the openness and transparency in the U.S. academic system.”

“The purpose of reporting potential conflicts of interest is to protect the integrity of professional judgement and ensure the public’s trust in the research being conducted,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “This defendant violated that trust by failing to report his financial interests and affiliations with foreign parties in an effort to improperly obtain research grant funding through the National Institutes of Health. The OIG is committed to identifying and investigating instances where individuals intentionally fail to report or falsify information regarding their sources of research support in order to ensure the proper use of taxpayer dollars.”

According to court documents, since 2013, Zheng had been participating in a Chinese Talent Plan, a program established by the Chinese government to recruit individuals with knowledge or access to foreign technology intellectual property. Since that time, Zheng used research conducted in the United States to benefit the People’s Republic of China. Zheng failed to disclose conflicts of interest or his foreign commitments to his American employers or to the NIH.

In announcing the plea, U.S. Attorney DeVillers acknowledged the assistance of the Anchorage FBI Division who arrested Zheng, interviewed him and executed multiple warrants while he was detained, and the assistance provided by the U.S. Attorney's Office for the District of Alaska. This case was investigated by the FBI and Health and Human Services Office of the Inspector General. Assistant United States Attorneys Douglas W. Squires and S. Courter Shimeall, Special Assistant United States Attorney Christopher N. St. Pierre, and Trial Attorney Matthew J. McKenzie with the Department of Justice’s National Security Division are representing the United States in this case.

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