Southern District of Ohio

CINCINNATI – Dr. Saad Sakkal, 72, was sentenced today in U.S. District Court to 240 months in prison for illegally distributing and dispensing controlled substances to multiple patients, including drugs that led to the death of one victim in 2016. Sakkal was practicing at Lindenwald Medical Association, Inc. in Hamilton.

 

At the conclusion of a trial in April 2019, a jury convicted Sakkal of 30 counts of illegal distribution of controlled substances outside the scope of a medical practice and with no legitimate medical purpose, and six counts of use of a registration number that was issued to someone else.

During the trial, prosecutors presented evidence gathered by investigators that Sakkal performed inadequate physical exams to identify and verify patient’s complaints of pain, and that he issued prescription combinations that were particularly dangerous and addictive. Pharmacists testified that they warned Sakkal of the risks and eventually refused to fill prescriptions issued by Sakkal. Investigators also testified that Sakkal received repeated notice of addiction, overdoses and deaths, but continued his practices.  

“Sakkal issued deadly drug cocktails without regard for the repeated warnings he received from employees, patients, pharmacists, another doctor, and the electronic records system,” said U.S. Attorney David M. DeVillers. “This doctor dealer even ignored overdoses by his patients. Instead of helping his patients, he caused more harm, and as a result, he earned spending the next few decades in federal prison.”

A federal grand jury indicted Sakkal in June, 2018. Agents arrested him in Florida after he was indicted. He has been held without bond since his arrest.

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); Anthony Groeber, Executive Director, State Medical Board of Ohio; Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy; Stephanie B. McCloud, Administrator, Ohio Bureau of Workers Compensation; announced the sentence imposed today by U.S. District Judge Michael R. Barrett. Assistant Deputy Criminal Chief Timothy S. Mangan and Assistant United States attorney Timothy D. Oakley represented the United States in this case.

 

 

# # #

DAYTON – A Dayton man was sentenced via video conference in federal court today to 120 months in prison for shooting a United States Postal Service mail carrier.

 

Christopher O. Gibson, 47, pleaded guilty in May to using a firearm during a crime of violence.

 

Gibson shot the postal worker as the worker delivered mail near Gibson’s home on Arlene Avenue in Dayton.

 

According to court documents, on Jan. 3, Gibson fired at the letter carrier three times, striking him once in the leg.

 

The Dayton Police Department recovered video of the incident from a Ring doorbell camera located near the area of the shooting.

 

“This defendant pulled a firearm on a federal worker and then fired it at him,” U.S. Attorney DeVillers said. “After shooting the weapon, Gibson fled from the scene, destroying evidence of his crime along the way. All of this resulted from the defendant’s apparent dissatisfaction with his mail service. He deserves this prison time.”

 

Tosha Dennis, Acting Inspector in Charge of the Pittsburgh Division of the U.S. Postal Inspection Service stated, “This investigation was an excellent example of a great partnership between the Dayton Police Department and the U.S. Postal Inspection Service. I fully commend the hard work and countless hours put forth by both agencies, which led to Gibson being arrested and convicted.”

 

Gibson was charged by federal criminal complaint on Jan. 8 and indicted by a federal grand jury on Jan. 14. He has remained in custody since his arrest.

 

Congress sets the minimum and 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; Tosha Dennis, Acting Inspector in Charge, United States Postal Inspection Service; and Dayton Police Chief Richard S. Biehl announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Brent G. Tabacchi is representing the United States in this case.

 

# # #

COLUMBUS, Ohio – A Cincinnati man who paid $3,000 for a tiger skin rug pleaded guilty in U.S. District Court today to violating the Endangered Species Act.

 

According to court documents, in August 2018, Ryan J. Gibbs, 44, of Cincinnati, contacted a man in the United Kingdom about buying a tiger skin rug. The man told Gibbs he could not legally ship a tiger skin to the United States, but knew someone in Minnesota who had tiger skins.

 

Gibbs started emailing and calling the person, who was actually an undercover Special Agent with the U.S. Fish and Wildlife Service, and said he wanted to buy a tiger skin and a mounted flamingo. Gibbs and the agent discussed the illegality of buying and selling tiger parts across state lines. Gibbs and the agent met near Jeffersonville, Ohio in December 2018 where Gibbs bought three mounted birds – a tufted puffin, a horned puffin and a flamingo for a total of $1,200.

 

Over the next several months, Gibbs and the agent communicated intermittently about the tiger skin. Gibbs and the agent met again near Jeffersonville in August 2019 where Gibbs paid $3,000 for the tiger skin.

 

The plea agreement requires Gibbs to serve one year of probation and perform 80 hours of community service. If possible, the community service should be directed toward assistant a non-profit or governmental organization in Ohio working on wildlife conservation. The agreement also calls for Gibbs to pay $100,000 to the Lacey Act Reward Account. Gibbs also agreed to abandon a stuffed lion, two stuffed puffins, a panther skin and a sawfish rostrum which he owns.

 

The Code of Federal Regulations lists tigers (panthera tigris) as endangered wherever they are found.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Jeffrey Bossert Clark, Assistant Attorney General, Department of Justice Environmental and Natural Resources Division; Erryl Wolgemuth, Supervisor with the US Fish and Wildlife Service; and Franklin County Prosecutor Ron O’Brien announced the plea entered today before Senior U.S. District Judge James L. Graham.

 

Special Assistant United States Attorney J. Michael Marous and Adam C. Cullman, Trial Attorney with the Department of Justice Environment and Natural Resources Division, are representing the United States in this case.

 

# # #

CINCINNATI – A federal grand jury has charged two men in a narcotics conspiracy that involved the seizure of more than half a million dollars and one kilogram of fentanyl.

 

Derrick Ferris, 44, of Cincinnati, and Jose Antonio Garcia, 22, of Lynwood, Calif., have been charged with conspiring to possess with intent to distribute fentanyl and smuggling bulk cash. The narcotics conspiracy is punishable by 10 years up to life in prison.

 

As part of an ongoing investigation, authorities with the Miami Valley Bulk Smuggling Task Force and Southern Ohio Bulk Smuggling-Major Drug Interdiction Task Force seized 1 kilogram of fentanyl and more than $500,000 in U.S. currency. The task forces are part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission.

 

According to the indictment, between May 7 and Aug. 5, 2020, Ferris (who is also known as Kelvin Croom) and Garcia smuggled bulk cash out of the United States with the intent to evade a currency reporting legal requirement.

 

If convicted, the United States seeks to forfeit the more than half a million dollars in cash, along with two gold Rolex watches, two gold chains, three handguns and ammunition.

 

Bulk cash smuggling is a federal crime punishable by up to five years in prison.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio, Homeland Security Investigations Special Agent in Charge Vance Callender, FBI Special Agent in Charge Chris Hoffman, Ohio Attorney General Dave Yost, Montgomery County Sheriff Rob Streck and Hamilton County Sheriff Jim Neil announced the charges. OCDETF Deputy Criminal Chief Christy L. Muncy is representing the United States in this case.

 

The Miami Valley Bulk Smuggling Task Force is made up of officers from the Montgomery County Sheriff's Office, Miami Township Police Department, Butler Township Police Department, Ohio State Highway Patrol, Ohio Bureau of Criminal Investigation, Homeland Security Investigations and Montgomery County Prosecutor's Office.

 

The Southwestern Ohio Bulk Smuggling-Major Drug Interdiction Task Force is made up of members of the Hamilton County Sheriff’s Office’s Regional Narcotics Unit along with partners from the Cincinnati Police Department, Green Township Police Department and Cheviot Police Department.

 

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

 

#  # #

DAYTON – Melody Hudson, 38, of Dayton, appeared in U.S. District Court today to face charges in an indictment alleging that she stole the identity of a 72-year old retired man and redirected his $919 monthly pension benefits to a bank account she controlled.

 

The indictment alleges that Hudson used the victim’s personal information to divert his pension benefits from his bank account into an account she controlled and withdrew money for her personal use. The alleged crimes took place between April and November 2019. On one occasion, she allegedly called the agency that was paying the pension, identified herself as a relative of the victim, and had someone impersonate the victim on the phone call with the agency.

 

The indictment charges Hudson with one count of bank fraud, which is punishable by up to 30 years in prison, one count of aggravated identity theft that carries a mandatory two-year prison term which must be served consecutive to any other prison time, and one count of use of another person’s Social Security number, a crime punishable by up to five years in prison.

 

Michigan State Police arrested Hudson in Lansing, Mich. on July 30. The U.S. Marshals Service transported her to Dayton to face the charges against her.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio, along with the Social Security Administration, Office of Inspector General and the Pension Benefit Guaranty Corporation, Office of Inspector General announced the indictment unsealed today following Hudson’s initial appearance before U.S. Magistrate Judge Michael J. Newman.

 

Hudson is scheduled to appear in court again tomorrow for a detention hearing.

U.S. Attorney DeVillers also gratefully acknowledged the assistance of the U.S. Marshals Service and the Michigan State Police in apprehending Hudson. Special Assistant U.S. Attorney Timothy Landry is representing the United States in this case.

 

The case is being prosecuted as part of the Justice Department’s Elder Fraud initiative. The Department launched a National Elder Fraud Hotline in March to provide services to seniors who may be victims of financial fraud. The Hotline’s toll free number is 833-FRAUD-11. Statements contained in indictments are allegations only. Defendants should be presumed innocent unless convicted in a court of law.

 

# # #

COLUMBUS, Ohio – A Virginia man pleaded guilty in federal court in Columbus today to participating in a racketeering conspiracy in Columbus on behalf of the transnational gang MS-13.

 

In his plea, Jose Daniel Gonzalez-Campos (a/k/a Flaco), 31, accepts responsibility for his role in the November 2015 murder of 17-year-old high school student Wilson Villeda.

 

Parties involved in Gonzalez-Campos’ case have recommended a sentence of 30 years in prison.

 

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

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 guilty plea entered today 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.

 

 

# # #

CINCINNATI – A federal grand jury has charged Malikai Willis, 24, of Hamilton, Ohio, with sexually trafficking and exploiting a child in an indictment returned here.

 

Malikai appeared in federal court today on the four-count indictment.

 

According to the indictment, from September 2019 through January 2020, Willis trafficked a 16-year-old female and caused her to engage in commercial sex acts.

 

Additionally, in November 2019 and January 2020, Willis allegedly created child pornography when he created three sexually explicit videos of the victim.

 

Sex trafficking a minor is punishable by 10 years up to life in prison. Producing child pornography carries a potential prison sentence of 15 to 30 years.

 

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 Jim Neil and Hamilton County Prosecutor Joe Deters announced the charges. Assistant United States Attorney Kyle J. Healey is 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.

 

# # #

DAYTON – A Huber Heights man was sentenced in federal court to the statutory maximum 10 years in prison for possessing a firearm as a convicted felon.

 

William Prigmore, 37, was convicted by a jury in July 2019 of one count of illegally possessing a firearm and two counts of illegally possessing ammunition as a convicted felon.

 

According to court documents, law enforcement throughout Ohio and in West Virginia encountered Prigmore throughout 2016 and 2017 at various incidents involving controlled substances and firearms.

 

Law enforcement responded to a complaint on Deer Creek Drive in Xenia in October 2017, where Prigmore was located in a vehicle with a handgun. The handgun was loaded with seven rounds in the magazine and one in the chamber.

 

Due to multiple past drug convictions, Prigmore is prohibited from possessing firearms. Prigmore was on parole with the State of Ohio when he committed the federal offense.

 

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 Xenia Police Chief Donald R. Person announced the sentence imposed on July 31 by U.S. District Court Judge Walter H. Rice. Assistant United States Attorneys Brent G. Tabacchi and Rob Painter represented the United States in this case.

# # #

CINCINNATI – Napoleon Crawford, 52, of Mason, was arrested and appeared in U.S. District Court here on July 30 to face charges in a two-count indictment alleging that Crawford has stolen more than $80,000 in Social Security and Department of Defense benefits earned by his father, a retired Navy officer who died in 2016.

 

Crawford is the fifteenth person charged this year in the 48-county Southern District of Ohio based on results of a large audit conducted by the Social Security Administration, Office of Inspector General, which found that dozens of Ohioans are illegally collecting a deceased relative’s federal retirement, Social Security or Veterans’ Administration benefits.

 

Ten of the fifteen people have pleaded guilty to charges of theft of public funds, a felony that is punishable by up to ten years in prison, three years of supervised release and a fine of up to $250,000. The fifteen charged allegedly received more than $898,000 in benefits.

 

One person has been sentenced so far. Debra Edwards, 57, of South Lebanon was sentenced July 28. Edwards was ordered to repay $49,575 in benefits she received illegally and serve three years’ probation with the first 90 days to be served in home detention.

 

“We will prosecute people who stick their hands in the pockets of taxpayers to steal benefits earned by their relatives,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “The investigation is continuing and others could be charged.”

 

In addition to Crawford and Edwards, the following individuals have been charged:

 

Name                                     Age                   City                   Amount               Status

Lori Barker

51

Hamilton

$53,406

Awaiting sentencing

Kinnard Asher

60

South Lebanon

$33,308

Awaiting sentencing

Billy Gray

44

Mt. Orab

$43,998

Awaiting sentencing

Laverne Harrison

60

Cincinnati

$40,079

Awaiting sentencing

Linda Daniels

62

Mt. Orab

$62,336

Awaiting sentencing

Wayne Coulter II

33

Cincinnati

$28,742

Charges pending

Ronald Lewis

43

Hamilton

$55,508

Awaiting sentencing

Douglas Dible

68

Richwood

$153,962

Awaiting sentencing

Gloria Funk

65

New Lexington

$55,920

Awaiting sentencing

Victor Warren

52

Marietta

$36,090

Charges pending

Donald Hawkins Jr.

47

Columbus

$27,120

Charges pending

Christina Saldana

41

West Carrollton

$103,042

Charges pending

Nathaniel Carruth

64

Dayton

$75,077

Awaiting sentencing

 

The cases are part of the national Social Security Administration (SSA) Fraud Prosecution Project, a collaboration with SSA’s Office of the General Counsel, Office of the Inspector General and the Department of Justice.

 

For more information on SSA’s Fraud Prosecution Project and the agency’s other anti-fraud efforts, please visit https://www.ssa.gov/antifraudfacts/.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio, along with the Social Security Administration’s Office of the Inspector General, Office of Audit; the Department of Defense Office of Inspector General; The Veterans’ Administration Office of Inspector General; the United States Office of Personnel Management Office of Inspector General and the United States Secret Service announced the results of the ongoing initiative. Special Assistant U.S. Attorney Timothy Landry is representing the United States in this initiative.

 

Statements contained in indictments or bills of information are allegations only. Defendants should be presumed innocent unless convicted in a court of law.

 

#  # #

DAYTON – A Butler County man pleaded guilty in U.S. District Court today to making a false statement in connection with the acquisition of the firearm used in killing Dayton Police Detective and DEA Task Force Officer Jorge DelRio on Nov. 4, 2019, during the execution of a search warrant on Ruskin Road in Dayton.

 

Delano Wells, 50, of Trenton, was charged by criminal complaint on Nov. 5, 2019, with making false statements on a federal firearms form.

 

According to court documents, three firearms were recovered from the scene on Ruskin Road on Nov. 4: two pistols with extended magazines and an AR-style weapon.

 

ATF was called to assist with tracing the three firearms and an urgent trace was requested for all three firearms recovered in the shooting.

 

Wells purchased all three firearms recovered from the scene, and at least six others in August and September 2019.

 

As part of his plea, Wells admitted that he purchased firearms on behalf of another individual, which had been selected by the other individual. Once Wells purchased the firearms, he would provide them to the other individual.

 

Wells lied on ATF Form 4473 by indicating “yes” he was purchasing the firearm for himself and not for anyone else. In reality, he purchased the firearms on behalf of another individual.

 

Wells faces up to 10 years in prison. Sentencing is scheduled for 1:30pm on November 13.

 

David M. DeVillers, U.S. Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Dayton Police Chief Richard S. Biehl; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Chris Hoffman, Special in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Andrew J. Hunt and Amy M. Smith are representing the United States in this case.

 

# # #

COLUMBUS, Ohio – A former Dublin, Ohio woman pleaded guilty via video conference 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.

 

Li Chen, 47, also pleaded guilty to conspiring to commit wire fraud.

 

Chen admitted 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, alleged 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 are charged with 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.

 

According to her plea agreement, Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen admitted to starting 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. Chen also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.

 

“Nationwide Children’s Hospital’s Research Institute took reasonable measures to protect its cutting-edge intellectual property and trade secrets regarding exosomes, and I commend the cooperation of Nationwide Children’s throughout this investigation,” U.S. Attorney David M. DeVillers said. “Chen betrayed her employer of 10 years by stealing trade secrets from this American institution and transferring them to China after receiving payments from the Chinese government.”

 

“Li Chen was a trusted researcher at Nationwide Children’s Hospital, conducting cutting-edge U.S. government-funded research,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “With her guilty plea, she admits that she abused this trust to establish a company in China for her own financial gain. The FBI is committed to working closely with partners such as Nationwide Children’s Hospital to protect the innovations that make America a world leader in science and technology.”

 

As part of her plea, Chen has agreed to forfeit approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc.

 

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.

 

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.

 

# # #

Former Ohio woman Li Chen, 46, pleaded guilty today via video conference in U.S. District Court today to conspiring to steal scientific trade secrets and conspiring to commit wire fraud concerning the research, identification and treatment of a range of pediatric medical conditions.

“Once again we see the People’s Republic of China (PRC) facilitating the theft of our nation’s ingenuity and hard work as part of their quest to rob, replicate and replace any product they don’t have the ability to develop themselves,” said John C. Demers, Assistant Attorney General for National Security.  “Far from being an isolated incident, we see the PRC implicated in around 60 percent of all trade secret theft cases.  This continued economic belligerence runs contrary to the values and norms that facilitate the success of our industries and countering it remains among our highest priorities.”

“Nationwide Children’s Hospital’s Research Institute took reasonable measures to protect its cutting-edge intellectual property and trade secrets regarding exosomes, and I commend the cooperation of Nationwide Children’s throughout this investigation,” U.S. Attorney David M. DeVillers said. “Chen betrayed her employer of 10 years by stealing trade secrets from this American institution and transferring them to China after receiving payments from the Chinese government.”

“Li Chen was a trusted researcher at Nationwide Children’s Hospital, conducting cutting-edge U.S. government-funded research,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “With her guilty plea, she admits that she abused this trust to establish a company in China for her own financial gain. The FBI is committed to working closely with partners such as Nationwide Children’s Hospital to protect the innovations that make America a world leader in science and technology.”

Chen admitted 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, alleged co-conspirator Yu Zhou, 49, 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 are charged with 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.

According to her plea agreement, Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.”  Chen admitted to starting 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.  Chen also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.

As part of her plea, Chen has agreed to forfeit approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc.

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.

John C. Demers, Assistant Attorney General for National Security;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 Sarah D. Morrison.  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.

COLUMBUS, Ohio – A federal grand jury has indicted a victim’s ex-girlfriend and four of her associates for conspiring and attempting to kidnap her ex-boyfriend and his girlfriend. The indictment was filed today.

 

Denia I. Avila, 37, of Columbus, and co-conspirators allegedly impersonated federal law enforcement officers and used a Taser while attempting to kidnap the victims.

 

The four others charged include, Jessica E. Wise, 38, of Columbus; Ellis L. Ray, II, 19, of Canal Winchester; Michael K. Ousley, 43, of Columbus; and Jerry E. McCallister, Jr, 27, of Columbus.

 

According to court documents, the co-conspirators attempted to kidnap the two individuals on Nov. 25, 2019, and Dec. 4, 2019, near the victims’ residence in Hilliard.

 

An affidavit details that during the first attempt, two males wearing all black with black face masks approached the victims as they entered a vehicle around 5:30am. They Tased the male victim’s neck and attempted to remove him from his vehicle. The female victim screamed and the male victim was able to push the attacker back, causing both men to flee on foot.

 

In the second incident, also before 5:30 a.m., the female victim attempted to leave their residence in the male’s vehicle but was blocked in by the suspect’s vehicle.

 

It is alleged that two males – wearing black jackets with “Police” jacket patches and holding a photograph of the male victim – approached the truck yelling “Police, open the door.” They attempted to open the truck door, but the victim began honking her horn and drove over a curb to escape the area.

 

Detectives discovered two videos in which Avila and Wise discuss plans for kidnapping and injuring the victims. A Taser and leg shackles are shown in the videos. Throughout the videos, the two women allegedly discuss disposing of the victims’ vehicles, locking the male victim in a hotel room, leaving the female victim beaten in a remote location, and various ways to evade law enforcement.

 

In the videos, Avila allegedly states she knows the victims would be too fearful to go to the authorities because she helped smuggle the male victim back into the United States after he was deported, and therefore she knew he was here illegally.

 

Receipts show the co-conspirators also purchased “Immigration” patches. Avila’s work cell phone had a screenshot on “how ICE (Immigration and Customs Enforcement) makes arrests” and searches including “ICE Federal Agent Halloween Costume.”

 

“In what some might think is a plot line for a movie, these individuals allegedly devised an elaborate scheme involving the impersonation of federal law enforcement agents to kidnap someone,” said Vance Callender, HSI special agent in charge for Michigan and Ohio.

 

“Not only did the alleged perpetrators try and fail to kidnap the victim, they tried a second time and failed,” said Keith Barwick, ICE Office of Professional Responsibility special agent in charge. “The suspects left a wide trail of evidence that agents and detectives were able to collect, follow, and use to arrest multiple coconspirators.” 

 

The five defendants were charged by criminal complaint on July 15.

 

Conspiracy to commit kidnapping is a federal crime punishable by up to life in prison. Attempted kidnapping is punishable by up to 20 years in prison. Conspiring to impersonate an Officer of the United States carries a maximum sentence of up to five years in prison.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Keith Barwick, Special Agent in Charge, ICE Office of Professional Responsibility; and Hilliard Division of Police Chief Robert Fisher announced the charges. The Department of Homeland Security Office of Inspector General and ICE Office of Professional Responsibility also assisted in the case.   

 

“The outcome of this case could have been very tragic without the exhaustive initial investigation by our detectives, and the ongoing and thorough collaboration with federal agencies,” said Hilliard Chief of Police Robert Fisher. “Hilliard citizens can feel reassured knowing the individuals who put this disturbing plan in place will be held accountable for their actions.”

 

Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.

 

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

 

# # #

COLUMBUS, Ohio – A federal grand jury has indicted the Ohio Speaker of the House in a federal racketeering conspiracy involving approximately $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout. The 43-page indictment was returned on July 29 and filed today.

 

Larry Householder, 61, of Glenford, Ohio, four other individuals and 501(c)(4) entity Generation Now were previously charged by a criminal complaint that was unsealed on July 21.

 

It is alleged that the enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.

 

The four other individuals indicted include:

 

• Mathew Borges, 48, of Bexley, a lobbyist who previously served as chair of the Ohio Republican Party;
• Jeffrey Longstreth, 44, of Columbus, Householder’s longtime campaign and political strategist;
• Neil Clark, 67, of Columbus, a lobbyist who owns and operates Grant Street Consultants and previously served as budget director for the Ohio Republican Caucus; and
• Juan Cespedes, 40, of Columbus, a multi-client lobbyist.

 

Generation Now, a corporate entity registered as a 501(c)(4) social welfare organization, was also charged.

 

According to court documents, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing.

 

The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received approximately $60 million into Generation Now from an energy company and its affiliates during the relevant period.

 

As alleged, in February 2017, Longstreth incorporated Generation Now as a 501(c)(4) social welfare entity purporting to promote energy independence and economic development; however, the entity was secretly controlled by Householder. As Clark stated in a recorded conversation, “Generation Now is the Speaker’s (c)(4).” Pursuant to federal law, the names and addresses of contributors to 501(c)(4)s are not made available for public inspection. 

 

In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of Generation Now. The defendants allegedly spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit.  When asked how much money was in Generation Now, Clark said, “it’s unlimited.”

 

The affidavit filed in support of the criminal complaint also alleges:

 

• In 2018, the enterprise spent energy company-to-Generation Now money on approximately 21 different state candidates – 15 (including Householder) in the primary, and six additional candidates in the general election.  The Enterprise spent more than one million in fall 2018 alone to flood the airways with negative ads against enterprise opponents.  Most of these candidates won the 2018 general election. All who won voted for Householder as Speaker.

 

• Money passed from the energy company through Generation Now was used to pay for Householder campaign staff, which would otherwise have been paid by Householder’s candidate committee, Friends of Larry Householder.

 

• Householder received more than $400,000 in personal benefits as a result of the payments into Generation Now, including funds to settle a personal lawsuit, to pay for costs associated with his residence in Florida, and to pay off thousands of dollars of credit card debt.

 

• The enterprise paid $15,000 to an individual to provide insider information about the ballot initiative and offered to pay signature collectors for the ballot initiative $2,500 cash and plane fare to stop gathering signatures.

 

“Dark money is a breeding ground for corruption. This investigation continues,” U.S. Attorney David M. DeVillers said.

 

The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison.

 

The case is being investigated by the FBI. Deputy Criminal Chief Emily N. Glatfelter, Assistant United States Attorney Matthew C. Singer, as well as Assistant Deputy Criminal Chief Timothy Mangan and Assistant United States Attorney Megan Gaffney Painter, are representing the United States in this case.

 

If you have information related to the public corruption alleged in this case, please contact the FBI at 614-849-1777.

 

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

 

 

# # #

DAYTON – The former director of Dayton’s Minority Business Assistance Center was sentenced via videoconference in U.S. District Court today to six months in prison and two years of supervised release for accepting a thing of value in connection with a local government.

 

According to court documents, RoShawn Winburn, 46, disclosed internal information regarding minority-owned, woman-owned and small disadvantaged business contracts to a local business owner who hoped to obtain contracts with the City of Dayton.

 

Between July 2015 and July 2016, Winburn accepted cash payments totaling more than $6,500 from the individual in exchange for internal City of Dayton documents with restricted public access.

 

Winburn met the individual at a downtown Dayton bar to provide information regarding contracts and receive cash.

 

Winburn pleaded guilty in February 2020.

 

Clayton Luckie, Brian Higgins, Steve Rauch, Joyce Cameron and James Cameron have also been charged in connection to this case. Luckie was sentenced in November 2019 to four months in prison for mail fraud. Williams was sentenced in January 2020 to 12 months in prison.

 

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; Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced the sentence imposed today by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Brent G. Tabacchi is representing the United States in this case.

 

# # #

DAYTON – Robert L. Hudson, 36, of West Carrolton, was sentenced in U.S. District Court to 192 months in prison for receiving child pornography.

 

According to court documents, Hudson used a Kik messenger account to receive and distribute child pornography files from others.

 

Hudson also used the online account to communicate with other users about child sexual exploitation.

 

In one such conversation, Hudson stated he had viewed child pornography with babies as young as six months old. Hudson also indicated in the conversation that he had engaged in sexual activities with a 12-year-old boy.

 

Hudson and the other user discussed options for finding and abusing young boys, including ways to “lure them in.”

 

Hudson was charged by criminal complaint in March 2019 and pleaded guilty in February 2020.

 

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 Court Judge Walter H. Rice. Assistant Deputy Criminal Chief Laura Clemmens is representing the United States in this case.

 

 

# # #

DAYTON – The United States entered into a $1 million Settlement Agreement with a global oil and fuel analysis instruments company that was awarded three contracts through the United States Air Force Small Business Innovation Research (SBIR) program.

 

Spectro Scientific (Spectro) will pay $1,050,957 to resolve allegations that it violated the False Claims Act through its participation in the United States Air Force SBIR program based at Wright-Patterson AFB. 

 

SBIR seeks to ensure that small businesses without access to capital receive an opportunity to develop new technology through federally-funded research and development. SBIR funding fosters small businesses with innovative ideas and provides the chance to grow their technology for future commercialization.

 

The SBIR program is reserved for small businesses with less than 500 employees and must not be majority owned by a single venture capital company.

 

Spectro repeatedly self-certified that it met the small business size requirements for eligibility to receive SBIR funding. Based on certain disclosures that Spectro later made about its ownership, the government conducted an investigation led by the Air Force Office of Special Investigations (AFOSI) into Spectro’s eligibility for its SBIR award. 

 

The United States contends that Spectro became ineligible to participate in the SBIR program by virtue of an acquisition where it became majority owned by a single venture capital company at the time it was awarded and performed certain phases of the SBIR contract.

 

Specifically, Spectro was awarded contracts in 2012, 2014 and 2017 while the company was ineligible. The Massachusetts-based entity received funding from the Air Force Research Laboratory at Wright-Patterson AFB for exploratory applications of advanced oil analysis technology for use in the field. 

 

“This office is committed to protecting taxpayer dollars and safeguarding the integrity of these programs so eligible companies receive a fair opportunity to contract with the Air Force,” said U.S. Attorney David M. DeVillers.

 

“One of the top investigative priorities of the Air Force Office of Special Investigations is to ensure the integrity of the Department of the Air Force’s procurement system, to include research and development programs,” said Paul W. Wachsmuth, Director, OSI Office of Procurement Fraud Investigations. “Any small business who seeks to participate in the SBIR program must do so with integrity.”

 

DeVillers was joined by the AFOSI Procurement Fraud Detachment 4 at Wright-Patterson AFB, and the Procurement Fraud Division of the Air Force Material Command Law Office, in announcing the settlement. Assistant United States Attorneys Brandi M. Stewart and Andrew M. Malek represented the United States in this matter.

 

# # #

The Department of Justice and the U.S. Attorney’s Office for the Southern District of Ohio announced today that the owners, developers and builders of 82 multi-family housing complexes have agreed to make extensive modifications to their properties and pay $475,000 to resolve claims that they violated the Fair Housing Act and the Americans with Disabilities Act by designing and constructing apartment complexes that are inaccessible to persons with disabilities.

This agreement resolves one of the largest housing accessibility lawsuits that the Justice Department has filed. The housing complexes at issue are located in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and West Virginia, and contain more than 3,000 units that are required to have accessible features.

Today’s settlement, which must still be approved by the U.S. District Court for the Southern District of Ohio, resolves the government’s lawsuit, filed in May 2019, against Ohio-based Miller-Valentine Operations Inc. and its affiliated companies. Under the terms of the settlement, the defendants must take extensive corrective actions to make the complexes accessible to persons with disabilities. These include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps and walkways to allow persons with disabilities to access units from sidewalks and parking areas, providing sufficient room for wheelchair users in bathrooms and kitchens, and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay $400,000 to establish a settlement fund to compensate individuals with disabilities who were harmed by the accessibility violations and $75,000 in civil penalties to the government to vindicate the public interest.

The settlement also requires the defendants to receive training about the Fair Housing Act and the Americans with Disabilities Act, to take steps to ensure that their future multifamily housing construction complies with these laws, and to provide periodic reports to the Justice Department. 

“For nearly three decades, federal law has mandated that new multifamily housing be accessible to people with disabilities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “And yet, after all these years, some in the housing industry continue to ignore their legal obligations by building inaccessible properties that deny individuals with disabilities the opportunity to live in and enjoy housing on equal terms with non-disabled tenants. There simply is no excuse for these violations of longstanding federal law. This lawsuit and its resolution should send an unmistakable message that this Department will work tirelessly to pursue those who deny individuals with disabilities their federally protected right to accessible housing.”

“Today’s settlement, if approved by the court, will achieve two major goals,” said David M. DeVillers, U.S. Attorney for the Southern District of Ohio. “It will correct actions taken in the past that limited access to housing for people with disabilities and at the same time put steps in place to prevent this from happening in the future.”

The complexes at issue, many of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:

Illinois

• Twin Lakes Senior Villas, Rantoul, IL

Indiana

• Honey Creek, Greenwood, IN
• Mill Pond, Muncie, IN
• Summit Pointe, Lawrenceburg, IN
• Waterbury Apartments, Decatur, IN

Iowa

• Meadow Vista Senior Villas, Altoona, IA

Kansas

• Galena Estates, Galena, KS

Kentucky

• Weaver Farm Apartments, Florence, KY

Missouri

• Hampshire Landing, Joplin, MO

North Carolina

• Madison Place Senior, Gastonia, NC
• Pinecrest Apartments, Walkertown, NC
• River Crossing, Charlotte, NC
• The Enclave at Winston-Salem, Winston-Salem, NC
• The Landings at Steele Creek I, Charlotte, NC
• The Landings at Steele Creek II, Charlotte, NC
• Twin Cedars I, Hickory, NC
• Twin Cedars II, Hickory, NC
• Villas at Twin Cedars, Hickory, NC

Ohio

• Aspen Grove Apartments, Middletown, OH
• Bent Tree Apartments I, Piqua, OH
• Bent Tree Apartments II, Piqua, OH
• Breckenridge Apartments, Findlay, OH
• Bridge Street Landing, Chillicothe, OH
• Brookdale Trillium Crossing, Columbus, OH
• Brookstone Apartments, Bellefontaine, OH
• Carriage Trails Senior Villas, Huber Heights, OH
• Cedar Trail, Bellbrook, OH
• Cedar Wood Apartments, Mansfield, OH
• Cobblegate Square Apartments, Moraine, OH
• Deerfield Crossing, Lebanon, OH
• Eagles Point Apartments, Kenton, OH
• Faith Community Housing, Crestline, OH
• Fox Run, Trotwood, OH
• Glen Arbors Apartments, Napoleon, OH
• Harbour Cove Apartments, Cincinnati, OH
• Harmony Senior Village, Williamsburg, OH
• Holly Hills Apartments, Jackson, OH
• Hoover Place, Dayton, OH
• Hunter’s Oak Apartments, Greenville, OH
• Indian Trace I, Oxford, OH
• Indian Trace II, Oxford, OH
• Lake Towne Senior, Walbridge, OH
• Lofts at Hoover, Dayton, OH
• Lofts at One West High Street, Oxford, OH
• Lyons Place I, Dayton, OH
• Lyons Place II, Dayton, OH
• Mallard Glen, Amelia, OH
• Mallard Landing, Marion, OH
• Meadow Creek Apartments, Bryan, OH
• Meadow View South, Springboro, OH
• Oak Wood Apartments, Lexington, OH
• Pheasant Run Senior, Dayton, OH
• Pine Ridge, Logan, OH
• Quail Run Apartments, Van Wert, OH
• Queen Esther’s Village, Canton, OH
• Riverside Landing at Delaware Place, Delaware, OH
• Riverview Bluffs, New Richmond, OH
• Sandhurst, Zanesville, OH
• Scioto Woods I, Chillicothe, OH
• Scioto Woods II, Chillicothe, OH
• Siena Village Senior Living, Dayton, OH
• St. Bernard Commons, St. Bernard, OH
• St. Rita’s Senior Housing, Garfield Heights, OH
• Stone Creek Apartments, Moraine, OH
• Sycamore Creek Apartments, Sidney, OH
• Timber Glen II, Batavia, OH
• Timber Ridge Apartments, Dayton, OH
• Timberlake Apartments, Vandalia, OH
• Walnut Run Senior Villas, Cortland, OH
• Waterstone Landing, Perrysburg, OH
• Whitehouse Square Senior Villas, Whitehouse, OH
• Wind Ridge Apartments, Tipp City, OH
• Windsor Place, Beavercreek, OH
• Wright Place Apartments, Xenia, OH

Oklahoma

• Fairway Breeze Apartments, El Reno, OK
• Reserve at Spencer, Spencer, OK

Pennsylvania

• Allegheny Pointe, Apollo, PA
• Walkers Ridge Apartments, Greensburg, PA

Texas

• Gallatin Park Apartments, Gallatin, TX
• Oak Ridge Apartments, Nolanville, TX
• Silversage Point at Western Center, Fort Worth, TX

West Virginia

• Reserve at Oak Spring, Clarksburg, WV

Persons who believe they or someone they know may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department toll-free at 1-833-591-0295 or by e-mail at fairhousing@usdoj.gov. 

The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.

CINCINNATI – A federal grand jury has charged Joshua Cordell Lee Williams, 19, of Xenia, Ohio, with murder in relation to firearms and drugs charges stemming from a January 2020 homicide in Wilmington in an indictment returned here today.

 

Specifically, Williams is charged with firearms-related murder and possessing with the intent to distribute a controlled substance.

 

According to court documents, on Jan. 21, 2020, Williams met with four individuals in Wilmington to sell them marijuana. The individuals had intended to meet Williams and take the marijuana without paying.

 

A struggle ensued between the individuals and Williams, who was armed with a firearm during the transaction. Williams fired the weapon, shooting the victim, Layne Hall, in the chest and fatally injuring him.

 

“Far too often, the combination of drug transactions and firearms results in death. As alleged, this case involves a fatal shooting over a few pounds of marijuana,” U.S. Attorney David M. DeVillers said. “This case – the first ever federal murder case in Cincinnati – highlights this office’s emphasis on combatting violent crime.” 

 

“This office, in partnership with Hamilton County Prosecutor Joe Deters' office, has initiated a multipronged attack on violent crime. We are concentrating on long-term historical investigations into violent organized crime and at the same time devoting resources to current, ongoing crimes perpetrated by the most violent in our community. Expect more to come.”

 

If convicted, Williams faces up to life in prison.

 

“The violence associated with the illegal drug trade is a scourge on our communities,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “When law enforcement agencies partner together in a task force environment, as in this case, we can better attack these issues and remove dangerous criminals from the streets.”

 

Williams was ordered to remain in custody pending trial.

 

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, Wilmington Police Chief Ron Cravens, Xenia Police Chief Donald R. Person, the Greater Warren County Drug Task Force and Clinton County Prosecutor Richard W. Moyer announced the charges. OCDETF Chief Christy L. Muncy and Assistant United States Attorney Timothy D. Oakley 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 – A Maryland man was sentenced in U.S. District Court to 30 months in prison for cyberstalking victims in the Southern District of Ohio.

 

Vincent Brocoli, 33, of Essex, Md., was indicted by a federal grand jury in August 2019 and pleaded guilty in November 2019.

 

According to court documents, from August 2016 until April 2019, Brocoli (also known as Matthew Dehart, BunchMedia and BunchMarketing), cyberstalked a female victim and her parents by creating social media accounts in their names, sending them threats, and using the Internet to cause substantial emotional distress to their family.

 

Brocoli created social media accounts like @xokirstylies1, @xokirstyslut1 and @killyourselfkirsty, among others.

 

The defendant used the Internet to post photos of the victim with a cross on her forehead and send messages like “I hope you get cancer and die UGLY SLLUT [sic],” and “Go away and die. Just put a gun in your mouth and get it over with.”

 

Court documents also detail that, over the course of nearly three years, Brocoli used the Internet and multiple social media platforms to post threatening and sexually vulgar comments, calling the victim a “worthless lying slut” and a “whore.” Brocoli also used the Internet to post comments asserting that the victim and her husband had AIDS, like claiming that the victim “took [her husband]’s gay cum down her throat and now she has aids. Diseased whorebag.”

 

Brocoli posed as the victim’s father and mother online by creating multiple Instagram and Twitter handles using their names. He also used the Internet to post comments to the victim’s mother, calling her a “pedophile,” commenting that she needed “to be arrested for child abuse,” and telling her to “Shut up and die.” Brocoli further used the Internet to post to the victim’s father that he would “be the first to go to hell and answer to the real God when the time comes.”

 

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 Friday evening, July 24, by Chief U.S. District Judge Algenon L. Marbley. Special Assistant United States Attorney Christopher N. St. Pierre represented the United States.

# # #

COLUMBUS, Ohio – Federal officials will brief the media on a public corruption racketeering conspiracy involving $60 million.

 

The briefing will be held:

 

TODAY: TUESDAY, JULY 21, 2020

 

WHEN:           2:30PM

 

WHERE:         U.S. Attorney’s Office

                        Main Conference Room

                        303 Marconi Blvd. Suite 200

                        Columbus, Ohio 43215

 

WHO:             U.S. Attorney David M. DeVillers

                        Chris Hoffman, FBI, Special Agent in Charge

 

                       

*Pool coverage is strongly encouraged for video footage. Reporters not present in person will be given opportunity to ask questions via conference telephone line.*

 

 

Room available at 2:15PM. ID and valid media credential will be required for entrance on Marconi Blvd., where someone will bring you into the building. No TV lighting provided. Please practice social distancing inside the main conference room/common areas and wear a mask.

 

Contact Jennifer Thornton at jennifer.thornton@usdoj.gov by 1PM to join via conference telephone line.

 

# # #

 

If you have media questions, contact Jennifer Thornton at jennifer.thornton@usdoj.gov.

COLUMBUS, Ohio – The Ohio Speaker of the House was arrested this morning and charged in a federal racketeering conspiracy involving approximately $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout. 

 

It is alleged that Larry Householder, 61, of Glenford, Ohio, and the enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.

 

 Four other individuals were also arrested and charged. They include:

 

• Mathew Borges, 48, of Bexley, a lobbyist who previously served as chair of the Ohio Republican Party;
• Jeffrey Longstreth, 44, of Columbus, Householder’s longtime campaign and political strategist;
• Neil Clark, 67, of Columbus, a lobbyist who owns and operates Grant Street Consultants and previously served as budget director for the Ohio Republican Caucus; and
• Juan Cespedes, 40, of Columbus, a multi-client lobbyist.

 

Generation Now, a corporate entity registered as a 501(c)(4) social welfare organization, was also charged.

 

The five individual defendants had initial appearances via video conference at 1pm today, at which time the case was unsealed.

 

According to the 80-page criminal complaint unsealed today, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing.

 

The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received approximately $60 million into Generation Now from an energy company and its affiliates during the relevant period.

 

As alleged, in February 2017, Longstreth incorporated Generation Now as a 501(c)(4) social welfare entity purporting to promote energy independence and economic development; however, the entity was secretly controlled by Householder. As Clark stated in a recorded conversation, “Generation Now is the Speaker’s (c)(4).” Pursuant to federal law, the names and addresses of contributors to 501(c)(4)s are not made available for public inspection. 

 

In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of Generation Now. The defendants allegedly spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit.  When asked how much money was in Generation Now, Clark said, “it’s unlimited.”

 

The affidavit filed in support of the criminal complaint also alleges:

 

• In 2018, the enterprise spent energy company-to-Generation Now money on approximately 21 different state candidates – 15 (including Householder) in the primary, and six additional candidates in the general election.  The Enterprise spent more than one million in fall 2018 alone to flood the airways with negative ads against enterprise opponents.  Most of these candidates won the 2018 general election. All who won voted for Householder as Speaker.

 

• Money passed from the energy company through Generation Now was used to pay for Householder campaign staff, which would otherwise have been paid by Householder’s candidate committee, Friends of Larry Householder.
   
• Householder received more than $400,000 in personal benefits as a result of the payments into Generation Now, including funds to settle a personal lawsuit, to pay for costs associated with his residence in Florida, and to pay off thousands of dollars of credit card debt.
   
• The enterprise paid $15,000 to an individual to provide insider information about the ballot initiative and offered to pay signature collectors for the ballot initiative $2,500 cash and plane fare to stop gathering signatures.

 

The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison.

 

“It takes courage for citizens to assist law enforcement in the ways detailed in the affidavit,” U.S. Attorney David M. DeVillers said. “We are grateful to those who felt a moral duty to work together with agents in bringing to light this alleged, significant public corruption.”

 

“All forms of public corruption are unacceptable,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “When the corruption is alleged to reach some of the highest levels of our state government, the citizens of Ohio should be shocked and appalled.”

 

The case is being investigated by the FBI. Deputy Criminal Chief Emily N. Glatfelter, Assistant United States Attorney Matthew C. Singer, as well as Assistant Deputy Criminal Chief Timothy Mangan and Assistant United States Attorney Megan Gaffney Painter, are representing the United States in this case.

 

A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

 

 

# # #

DAYTON – Two Dayton men have been sentenced this week in federal court to serve more than five years in prison for possessing child pornography.

 

David Dwayne Weaver, 40, of Dayton, was sentenced in U.S. District Court today to 90 months in prison for possessing more than 1,000 images and more than 1,000 videos of child pornography.

 

Zachary Marra, 33, of Dayton, was sentenced on July 13 to 60 months in prison for possessing 223 videos and 213 still images of child pornography on his phone.

 

Weaver and Marra both received child pornography through the Kik messaging app.

 

FBI agents began investigating Weaver after receiving information that the subject of a child pornography investigation by the Broward County, Florida Sheriff’s Office had traded child pornography files with Weaver via text messages.  Multiple tips were also received regarding Weaver’s user of various Google accounts to store and trade child pornography files. 

 

Weaver also used Kik messenger, Telegram messenger, and email to communicate with others about the sexual exploitation and sexual abuse of children. He used the Tumblr social media site to meet a number of his child pornography trading partners and various Dropbox and Google accounts to store his child pornography files.

 

Court documents detail that Weaver’s pornography collection included toddler-aged victims.

 

According to court documents, Homeland Security agents received a tip from an online messaging service and interviewed Marra in March 2019. Marra told agents he had traded images with other users of the messaging service, but had deleted the images from his phone. Agents obtained a search warrant for his phone and determined that between June 2018 and March 2019, he had possessed and viewed 223 videos and 213 still images depicting the sexual abuse of prepubescent children. Marra pleaded guilty in December 2019 to one charge of possession of child pornography.

 

Weaver and Marra’s sentences include an order that each man pay thousands of dollars in restitution to the identified victims in their cases. While the defendants are on supervised release following their prison terms, they must register as a sex offender anywhere that they live, work or go to school.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge over Michigan and Ohio, Homeland Security Investigations (HSI); and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentences imposed by Senior U.S. District Court Judge Walter H. Rice. Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in this case.

 

 

# # #

CINCINNATI – Three men face federal drug trafficking charges after law enforcement officers seized almost 80 kilograms of cocaine from the Dayton used car dealership one of them co-owns.

 

A federal indictment charges Jerry Timothy Vaughn Jr., 40 of Dayton, and David Scott, 41, of Dayton with narcotics conspiracy, distribution of a controlled substance and possession with intent to distribute a controlled substance. It was unsealed after Scott’s arrest on July 1. A Cincinnati man, Shannon Jamar Higgins Sr., 47, pleaded guilty on July 14 to one count of possession with intent to distribute a controlled substance.

 

According to court documents, DEA agents and Cincinnati police officers investigating cocaine trafficking in Cincinnati determined that Higgins was traveling to Luxury Sports Auto Sales in Dayton to purchase cocaine from Vaughn and Scott, who is the co-owner of the used car dealership.

 

Investigators executed a federal search warrant at Luxury Sports in January and found approximately 79,970 grams of cocaine in a metal cylinder. They also searched Vaughn’s residences and found cash, more cocaine and a firearm.

 

Narcotics conspiracy and possession with intent to distribute more than 500 grams of cocaine is punishable by a term of imprisonment of at least five up to forty years. Distribution of a controlled substance is punishable by up to 20 years imprisonment and possession with intent to distribute five kilograms or more of cocaine is punishable by a term of imprisonment of at least ten years up to life.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Cincinnati Police Chief Eliot K. Isaac announced the plea and the indictment. They also acknowledged the assistance provided by the Ohio State Highway Patrol and the Trotwood Police Department. Assistant U.S. Attorney Ashley Brucato and OCDETF Deputy Criminal Chief Christy Muncy are representing the United States in this case.

 

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

 

# # #

If you have media questions, contact Jennifer Thornton at jennifer.thornton@usdoj.gov.

COLUMBUS, Ohio – A rheumatology professor and researcher with strong ties to China has been ordered held without bond to face a charge of grant fraud for not disclosing that he was engaged in a sophisticated scheme 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.  He is also charged with making false statements about maintaining employment in China at the same time he was employed at universities in the United States, including The Ohio State University.

Song Guo Zheng, 57, 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 cellular telephones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items.

“Yet again, we are faced with a professor at a U.S. University, who is a member of a Chinese Talent Plan, allegedly and deliberately failing to disclose his relationship with a Chinese university and receipt of funds from the Chinese Government in order to obtain millions of dollars in U.S. grant money designed to benefit the health and well-being of the people of the United States — not to be hijacked to supplement the research goals of the Chinese Communist Party,” said Assistant Attorney General for National Security John C. Demers.  “This case, like too many others, should serve as a reminder that the United States Government takes seriously the obligation of truthfulness and transparency on grant applications, and those who violate the law to benefit China or any other foreign nation will be held accountable.”

"This case highlights another example of a Chinese Talent Plan member allegedly using U.S. taxpayer funds for the benefit of the Chinese government," said Alan E. Kohler, Jr, Assistant Director of the FBI's Counterintelligence Division. "According to the criminal complaint, Zheng violated laws concerning the use of federal research funds and did not disclose his employment in China. The FBI will continue to work with our partners to stop such illegal activity and protect U.S. research."

“We allege that Zheng was preparing to flee the country after he learned that his employer had begun an administrative process into whether or not he was complying with rules governing taxpayer-funded grants,” said David M. DeVillers, U.S. Attorney for the Southern District of Ohio.  “This is our office’s third recent case involving the illegal transfer of intellectual property and research to China. This underscores our commitment to work with the FBI, the Department of Health and Human Services, and our research institutions 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 taxpayers of the United States are the real victims when researchers defraud our government and exploit our system to benefit China,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman.  “The cutting-edge technologies that are being developed in our country must be carefully protected from our foreign adversaries and the FBI will continue to work with our partners to safeguard these important innovations.”

A criminal complaint filed May 23 and unsealed following today’s detention hearing charges Zheng with one count of fraud or bribery concerning programs receiving federal funds, a crime punishable by up to ten years in prison, and one count of making false statements, which is punishable by up to five years in prison.  Magistrate Judge Elizabeth Preston Deavers ordered Zheng held without bond because he is a flight risk.  The case will be presented to a federal grand jury for possible indictment.  The investigation is continuing.

An affidavit filed with the complaint alleges that, since 2013, Zheng has 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 then, Zheng has used research conducted in the U.S. to benefit the People’s Republic of China.  Zheng allegedly failed to disclose conflicts of interest or his foreign commitments to his U.S. employers or to the NIH.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney DeVillers, and Christopher Hoffman, Special Agent in Charge, FBI, Cincinnati Field Division announced the criminal complaint, and 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.  Assistant U.S. Attorneys Douglas W. Squires and Courter Shimeall, Special Assistant U.S. Attorney Christopher St. Pierre, and Trial Attorney Matthew J. McKenzie with the Department of Justice National Security Division are representing the United States in this case.

A criminal complaint merely contains allegations.  All defendants are presumed innocent unless proven guilty in a court of law.

#   #   #

A rheumatology professor and researcher with strong ties to China has been ordered held without bond to face a charge of grant fraud for not disclosing that he was engaged in a sophisticated scheme 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.  He is also charged with making false statements about maintaining employment in China at the same time he was employed at universities in the United States, including The Ohio State University.

Song Guo Zheng, 57, 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 cellular telephones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items.

“Yet again, we are faced with a professor at a U.S. University, who is a member of a Chinese Talent Plan, allegedly and deliberately failing to disclose his relationship with a Chinese university and receipt of funds from the Chinese Government in order to obtain millions of dollars in U.S. grant money designed to benefit the health and well-being of the people of the United States — not to be hijacked to supplement the research goals of the Chinese Communist Party,” said Assistant Attorney General for National Security John C. Demers.  “This case, like too many others, should serve as a reminder that the United States Government takes seriously the obligation of truthfulness and transparency on grant applications, and those who violate the law to benefit China or any other foreign nation will be held accountable.”

"This case highlights another example of a Chinese Talent Plan member allegedly using U.S. taxpayer funds for the benefit of the Chinese government," said Alan E. Kohler, Jr, Assistant Director of the FBI's Counterintelligence Division. "According to the criminal complaint, Zheng violated laws concerning the use of federal research funds and did not disclose his employment in China. The FBI will continue to work with our partners to stop such illegal activity and protect U.S. research."

“We allege that Zheng was preparing to flee the country after he learned that his employer had begun an administrative process into whether or not he was complying with rules governing taxpayer-funded grants,” said David M. DeVillers, U.S. Attorney for the Southern District of Ohio.  “This is our office’s third recent case involving the illegal transfer of intellectual property and research to China. This underscores our commitment to work with the FBI, the Department of Health and Human Services, and our research institutions 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 taxpayers of the United States are the real victims when researchers defraud our government and exploit our system to benefit China,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman.  “The cutting-edge technologies that are being developed in our country must be carefully protected from our foreign adversaries and the FBI will continue to work with our partners to safeguard these important innovations.”

A criminal complaint filed May 23 and unsealed following today’s detention hearing charges Zheng with one count of fraud or bribery concerning programs receiving federal funds, a crime punishable by up to ten years in prison, and one count of making false statements, which is punishable by up to five years in prison.  Magistrate Judge Elizabeth Preston Deavers ordered Zheng held without bond because he is a flight risk.  The case will be presented to a federal grand jury for possible indictment.  The investigation is continuing.

An affidavit filed with the complaint alleges that, since 2013, Zheng has 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 then, Zheng has used research conducted in the U.S. to benefit the People’s Republic of China.  Zheng allegedly failed to disclose conflicts of interest or his foreign commitments to his U.S. employers or to the NIH.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney DeVillers, and Christopher Hoffman, Special Agent in Charge, FBI, Cincinnati Field Division announced the criminal complaint.  Assistant U.S. Attorneys Douglas W. Squires and Courter Shimeall, Special Assistant U.S. Attorney Christopher St. Pierre, and Trial Attorney Matthew J. McKenzie with the Department of Justice National Security Division are representing the United States in this case.

A criminal complaint merely contains allegations.  All defendants are presumed innocent unless proven guilty in a court of law.

CINCINNATI – Thomas Winkelbach, 79, of Cincinnati, pleaded guilty today to one count of sexual exploitation of a minor for taking sexually explicit photos of the victim.

According to court documents, Winkelbach used a digital camera to take sexually explicit pictures of his victim 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 one- and two-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.

Sexual exploitation of children is punishable by at least 15 years and up to 30 years in prison. The court will determine an appropriate sentence based on federal sentencing guidelines, the defendant’s acceptance of responsibility and other factors. The plea agreement also calls for Winkelbach to pay restitution to the victim’s family and forfeit all images as well as ten cameras, three cell phones, eight computing devices and storage media used to store and share the images.

Winkelbach remains in custody until sentencing.

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 Jim Neil; and Cincinnati Police Chief Eliot K. Isaac announced the plea entered before U.S. District Judge Michael Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.

# # #

 

CINCINNATI – The former executive director and bookkeeper of My Sister’s House, a domestic violence shelter in Washington Court House, were arrested today on charges contained in an indictment alleging that the two spent thousands of dollars intended for the operation of the shelter on personal expenses for themselves, including food, a trip to Disney World and Universal Studios for their daughters, and thousands of dollars in purchases from Avon, Thirty-One and iTunes.

Agents arrested Crystal Chrisman, 52, the former executive director of the shelter, at her home in Columbus, and Jaime Cardinal, 44, the shelter’s former bookkeeper, in Washington Court House. They were transported to federal court in Cincinnati for initial appearances and released by Magistrate Judge Stephanie Bowman until further court hearings are scheduled.

The indictment charges each defendant in Count One with conspiracy to commit theft concerning programs receiving federal funds, and in Count Two with theft concerning programs receiving federal funds. If convicted, the defendants face up to five years’ imprisonment on Count One and up to ten years imprisonment on Count Two, plus up to a $250,000 fine for each count. If convicted, the defendants could be ordered to pay full restitution of the amounts allegedly stolen, to forfeit any assets they bought with stolen funds and to serve a term of supervised release. The allegations relate to activity between January 2014 and October 2016.

“The indictment alleges that the purpose of the conspiracy was for the defendants to unlawfully enrich themselves by converting funds intended for the shelter to their personal use,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “They allegedly achieved their objective by misusing debit cards connected to shelter accounts for personal purchases at restaurants, auctions, craft stores, and bowling alleys among other places - including purchases made when few, if any, victims lived at the shelter.”

“These two individuals allegedly stole DOJ funds intended to help victims of domestic violence and used it for personal gain.  The Department of Justice Office of the Inspector General is committed to deterring abuse of DOJ programs for victims of violence.  We will continue to root out these kinds of selfish schemes,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Chicago Field Office. The defendants allegedly committed the crimes between January 2014 and October 2016. My Sister’s House received more than $10,000 annually in federal grant funds, including grants under the Violence Against Women Act, the Family Violence Prevention and Services Act and the Victims of Crime Act. The grants are intended to be used to pay for salaries and benefits of staff and for shelter operations, including supplies and shelter maintenance.

David M. DeVillers, United States Attorney for the Southern District of Ohio; and the Department of Justice Office of the Inspector General announced the indictment. Assistant United States Attorney Julie Garcia is representing the United States in this case.

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

# # #

COLUMBUS, Ohio – A Pickerington couple have been sentenced for conspiring to defraud multiple federal programs by committing student-aid fraud, tax-return fraud, and Medicaid and SNAP fraud. They caused a total loss of more than half a million dollars.

Damien M. Johnson, 40, was sentenced to 51 months in prison and was ordered to pay $219,976 in restitution to the U.S. Department of Education, $149,824 to the IRS and $87,404 to the Fairfield County Department of Job and Family Services on one count of conspiracy to commit student loan fraud and theft of government funds, and $73,120 to an individual victim on one count of bank fraud.

On March 5, 2020, Kisha C. Hollins-Johnson, 42, was sentenced to 28 months in prison, three years of supervised release, of which 12 months is to be served in home confinement, and was ordered to pay restitution in the amount of $219,976 to the U.S. Department of Education, $149,824 to the IRS and $87,404 to the Fairfield County Department of Job and Family Services on one count of conspiring to commit student loan fraud and theft of government funds, one count of committing student loan fraud, one count of making a false statement to HUD, one count of witness tampering and two counts of theft of government money.

According to court documents, from at least 2011 through 2017, the defendants recruited more than five people to provide their personal information to apply for college admissions at Columbus State Community College.

All of the students fraudulently enrolled in online classes at the college. Hollins-Johnson submitted false financial aid forms for the students and completed coursework for all of the students. Hollins-Johnson enrolled the students in the same courses and chose the same or similar topics for their papers.

When Johnson was not making satisfactory academic progress, Hollins-Johnson created fake documents, including medical records, for use in an academic appeals process in order for Johnson to remain eligible to receive financial aid. She fabricated a letter purporting to be from a doctor that claimed Johnson had sickle cell anemia. The doctor did not write the note, and in fact was a gynecologist.

In total, the U.S. Department of Education issued nearly $220,000 to Columbus State and as refunds to the defendants. Any amount of student loan above the cost of tuition and fees was given to the defendants.

Johnson also committed bank fraud by obtaining seven checks totaling at least $73,000 from an 87-year-old victim who had dementia. He met the victim going door-to-door, making sales pitches to get customers to switch their energy supplier to his employer. He called the victim’s bank, impersonating the victim, to request transfers of funds. Johnson used the money on a variety of personal transactions, including $7,150 at a pawnshop, $1,798 at Gucci, $1,558 at Louis Vuitton, $1,182 in payments to vehicle dealers and $2,500 at a law firm.

Hollins-Johnson submitted false tax returns by claiming fake defendants and educational credits, and submitting fictitious W-2s. Johnson contacted the IRS pretending to be at least one of the other taxpayers and delivered portions of the tax refunds to other individuals.

The couple also fraudulently obtained SNAP food stamp benefits by claiming they were each single when they were married. As part of the conspiracy, Hollins-Johnson submitted false letters verifying Johnson’s employment for food stamp eligibility.

In 2014, Hollins-Johnson submitted an application for a $200,000 home loan insured by the FHA. When she submitted the loan application, she used fabricated employment documents that stated she worked for the State of Ohio. Additionally, she fabricated a form the mortgage company sent to a person they believed was a Human Relations Manager to verify employment.

After investigators searched the defendants’ residence, they engaged in witness tampering. Hollins-Johnson engaged in a scheme that involved creating a fake Facebook account in the victim’s name. The scheme also involved using an app that allows users to change their caller ID and apply a voice changer feature to call a witness in the case, pretending to be from the Licking County Clerk of Courts. Johnson set up an in-person meeting with the witness, where Hollins-Johnson instructed the witness not to talk with law enforcement.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Johnson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; John F. Woolly, Special Agent in Charge, U.S. Department of Education Office of Inspector General; and officials with the Fairfield County Job & Family Services Fraud and Benefit Recovery division announced the sentence handed down today by U.S. District Judge U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.

# # #

 

 

COLUMBUS, Ohio – The former comptroller of the Catholic Diocese of Steubenville pleaded guilty in U.S. District Court to failing to pay the Internal Revenue Service payroll taxes withheld from the paychecks of diocesan employees, to filing false tax returns and also embezzling $299,500 in diocesan funds between 2008 and 2017.

David A. Franklin, 67, pleaded guilty today 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.

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, but did not pay the withheld funds over to the Internal Revenue Service. From 2013 through 2016, Franklin did the same thing to employee paychecks for the Mount Calvary Cemetery Association. As a result, the Diocesan Entities had to pay and did pay the IRS $2,778,462.68 in withheld payroll taxes and the employer portion of the employment taxes that Franklin had caused not to be paid over.

“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,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “For four tax years, Franklin also filed false personal income tax returns, causing tax loss of $33,672.25.”

Willful failure to account for and pay over employment taxes is punishable by up to five years in prison. Making and subscribing a false income tax return is punishable by up to three years in prison. Wire fraud is punishable by up to 20 years in prison. The court will determine an appropriate punishment according to federal sentencing guidelines and other relevant factors.

“The actions of David Franklin were egregious and caused significant financial harm to Catholic Diocese of Steubenville and the Mount Calvary Cemetery Association who entrusted him to provide sound accounting and financial reporting services, not to divert monies for his own personal use,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “Bringing to justice those who prey on their employers for their personal financial gain has been and will continue to be a top priority for IRS Criminal Investigation.”

The plea agreement also requires Franklin to pay $299,500 in restitution to the Diocese for the embezzlement. The court could also order restitution of the tax loss, interest and penalties sustained by the Diocese. As a result of Franklin’s actions, the Diocesan Entities had to pay a total of $999,712.79 in interest and penalties to the Internal Revenue Service that they otherwise would not have had to pay.

Mr. DeVillers and SAC Jackson announced the pleas entered before 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 – Daniel Lee Rippy, 29, of Livermore, California pleaded guilty today to threatening a shooting at The Ohio State University and vowing to hurt football players. He sent the online threat during the 2018 football game between Ohio State and Michigan, which was played in Columbus.

According to court documents, Rippy sent a message over Facebook stating that the school was going to get shot up and “I’m seriously going to hurt the students and all the players from the football team.” He sent several other threats to injure or kill players, their family members and the head coach.

Law enforcement officials at the stadium were placed on high alert and re-allocated resources to investigate the threat, ultimately determining that Rippy was in California at the time he made the threat and did not pose an immediate danger.

“Graphic threats of violence against anyone, but especially threats during high-profile events, are taken seriously and will be prosecuted,” said David M. DeVillers, United States Attorney for the Southern District of Ohio.

“Threats of violence are very dangerous and can divert law enforcement resources from local emergencies,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “I commend The Ohio State University Police Division, the Joint Terrorism Task Force, and our law enforcement partners who aggressively investigated this case and work each day to keep the community safe.”

FBI agents arrested Rippy in California in December 2019 and he was released on bond, but he was re-arrested and U.S. Marshals transported him to Columbus after he failed to appear for a scheduled appointment with the court. Rippy today pleaded guilty to one count of Threat in Interstate Communications, which carries a maximum statutory penalty of five years in prison and a $250,000 fine. The court will conduct a pre-sentence investigation and determine an appropriate sentence according to federal sentencing guidelines and the defendant’s acceptance of responsibility, among other factors. He remains in custody pending sentencing.

Joining Mr. DeVillers and SAC Hoffman in announcing the plea was Ohio State University Police Chief Kimberly Spears-McNatt. The plea was entered before U.S. Magistrate Judge Norah McCann King. Assistant U.S. Attorney Jessica Knight represented the United States in the case which was investigated by the FBI Joint Terrorism Task Force.

#  #   #

 

DAYTON – Kavonte Knolton, 21 and Jamaal Murphy, 19, both of Dayton, have been charged with committing a total of five armed robberies of convenience stores in the Miami Valley dating back to December 2019.

The charges were outlined in an 11-count indictment returned on June 23. Knolton and Murphy were arrested June 29 by Dayton Police and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The indictment alleges that Murphy robbed the Wyoming Mini-Mart in December 2019 and that Knolton robbed a UDF on Woodman Avenue twice, once on January 25 and again on February 14. The indictment accuses both men of robbing a Circle K on Dorothy Lane on February 22 and the Wyoming Mini-Mart again on March 5. They are accused of using, carrying or brandishing firearms in each of the robberies.

A federal grand jury in Dayton indicted the men for violating the Hobbs Act, a federal law that punishes people who commit crimes involving businesses that operate in interstate commerce.

The indictment charges the men with one count of conspiracy and five counts of violating the Hobbs Act. Each count is punishable by up to 20 years in prison. The indictment also charges five counts of using, carrying or brandishing a firearm during a crime of violence. Each of those counts is punishable by a mandatory term of seven years in prison, which must be served consecutive to any sentence for the robberies.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Dayton Police Chief Rick Biehl in announcing the indictment. Assistant United States Attorney Brent Tabacchi and Deputy Criminal Chief Dominick Gerace are representing the United States in this case.

An indictment merely contains allegations. All defendants are presumed innocent unless proven guilty in a court of law.

#   #   #

DAYTON – A federal grand jury has charged five Dayton men in an identity theft conspiracy that involved re-encoding gift and credit cards in order to steal gasoline at approximately 50 Dayton-area gas stations and convenience stores.

According to the indictment, co-conspirators executed a fraud scheme to acquire bulk quantities of stolen personal credit card account numbers, names, addresses and other personal identifying information from the Dark Web.

The stolen information was thereafter allegedly re-encoded by the co-conspirators on hundreds of blank and reused gift cards and credit cards for later use in the left of large quantities of gasoline from approximately 50 Dayton-area gas stations and convenience stores over a two and a half year time period.

Court documents say the defendants issued announcements on Facebook and sent blast text messages indicating the precise date, time and retail establishment of upcoming illicit “fill-ups.”

Conspirators would allegedly appear at the designated locations for the purpose of hi-jacking the operation of retail store gas pumps using counterfeit credit cards accepting $20-$30 payments from customers, filling up their vehicles with stolen gas.  It was reportedly not unusual to observe six to 10 vehicles lined up at designated gas pumps waiting to receive “fill-ups” from members of the conspiracy. 

Those charged include Kevin Earl Alexander, Jr., 33; Demetrius Hicks, 28; Tyson Kenneth Thomas, 24; Darrell Toshe White, 27; and Isaiah Cooper, 20. Each of the defendants is charged with conspiracy to engage in access device fraud, punishable by up to seven and one-half years in prison. Defendants are also charged in the 11-count indictment with aggravated identity theft, illegally possessing unauthorized access devices and device making equipment. Hicks is also charged with illegally possessing a firearm as a convicted felon.

Three of the defendants were arrested over the past two days. Alexander was already in state custody for a prior state conviction. All five defendants will appear in federal court for arraignment.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, Cincinnati Field Office; and Dayton Police Chief Richard S. Biehl announced the charges. Assistant United States Attorney Dwight Keller is representing the United States in this case.

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

# # #

COLUMBUS, Ohio – A convicted felon who was stopped for a traffic violation by Dublin, Ohio Police officers pleaded guilty in U.S. District Court to illegal possession of a firearm after officers found a loaded gun in his car.

Waymond C. Gordon, 33, of Columbus entered the plea on June 29.

According to court documents, on March 12, 2019, Dublin police stopped Gordon for a traffic violation. A records check found that Gordon was driving with a suspended license and had outstanding arrest warrants. Officers searched his car and found a loaded .22 caliber revolver between the driver’s seat and the center console.   

Gordon had been convicted in Franklin County Common Pleas Court in 2009 of robbery. Federal law prohibits convicted felons from possessing or controlling firearms or ammunition.

Possession of a firearm by a convicted felon is punishable by up to ten years in prison. A judge will set a date for Gordon’s sentencing.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Dublin Police Chief Justin Paez announced the plea entered before U.S. Magistrate Judge Elizabeth Preston Deavers. Deputy Assistant Criminal Chief Gary Spartis is representing the United States in this case.

#   #   #

COLUMBUS, Ohio – Joseph Michael Bragg, 41, of Columbus, was sentenced in U.S. District Court today to serve 22 months in prison, followed by three years of supervised release for sending more than a dozen threats to an Oklahoma sheriff and threatening the Columbus FBI agent who came to his house to interview him.

According to court documents, between June and July 2018, Bragg transmitted at least a dozen communications electronically, many of them through the Oologah, Oklahoma public website, threatening to violently injure Rogers County, Oklahoma Sheriff Scott Walton along with police officers and their families.

On July 20, 2018, at the request of the FBI office in Oklahoma, an FBI agent in Columbus went to Bragg’s residence. Bragg came to the door, shouted profanities at the agent and told the agent “you have no authority here” before going back inside. Bragg came back to the door threatening to shoot and decapitate the agent. The agent drew his weapon in defense. Authorities came back with a search warrant and later arrested Bragg, who has been in custody since his arrest.

Bragg pleaded guilty in July 2019 to one count of transmitting a threat in interstate commerce and one count of influencing a federal official by threat. The 22-month sentence amounts to time-served. While on supervised release, Bragg must also undergo substance abuse testing, counseling and treatment as directed by the U.S. Probation office. Bragg must also participate in a mental health assessment, counseling and treatment program including medication management. The court ordered Bragg to have no content with his victims and ordered him to allow Probation access to his social media accounts if there is a reasonable suspicion that he violated any conditions of his supervision.

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; and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant U.S. Attorney Jessica Knight represented the United States in the case which was investigated by the FBI Joint Terrorism Task Force.

#   #   #

CINCINNATI – Former Cincinnati City Council president pro tem Tamaya Dennard, 40, pleaded guilty today in U.S. District Court to accepting $15,000 in bribe money she sought and accepted as payment in exchange for her vote on a proposal before Council.

“Dennard pleaded guilty to one count of honest services wire fraud,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “She sought to deprive the citizens of Cincinnati of their rights to honest services by an elected official in order to enrich herself through corruption.”

“It is completely unacceptable for an elected official to solicit money in exchange for official actions,” stated Cincinnati Special Agent in Charge Chris Hoffman. “Today’s plea should serve as a reminder that the FBI considers public corruption to be a top priority and we will continue to vigorously investigate fraud and abuse in order to hold public officials accountable.”

Court documents filed with her plea say that 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 plea includes a $15,000 money judgment against her.

By law, honest services wire fraud is punishable by up to 20 years in prison and a fine of up to $250,000. The court will determine an appropriate sentence based on several factors including federal sentencing guidelines and her acceptance of responsibility. No sentencing date has been set.

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 before 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.

# # #

COLUMBUS, Ohio – A federal complaint alleging possession of a firearm by a convicted felon has been filed against Ronnie Earl Murdock Jr, 31, of Columbus.

According to an affidavit filed with the complaint on Friday afternoon, an officer in the Columbus Police Emergency Operations Center monitoring a demonstration near Broad and Front streets on June 24 recognized Murdock and saw Murdock holding a rifle. The officer knew that Murdock was a convicted felon and not allowed to own, possess or control a firearm.

Columbus SWAT officers responded and arrested Murdock. Officers recovered a semiautomatic 2.23-caliber rifle with 31 live rounds of ammunition in the magazine.

Murdock pleaded guilty in Franklin County Common Pleas Court in October 2007 to attempted burglary and in October 2016 to robbery. Both crimes are felonies. Possession of a firearm by a convicted felon is punishable by up to ten years in prison. A judge will schedule a hearing for Murdock in federal court.

“Peaceful protests can turn into tragedies if illegal possession of firearms becomes part of the mix,” said David M. DeVillers, United States Attorney for the Southern District of Ohio.

Mr. DeVillers, along with Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the charge. Assistant U.S. Attorney Kevin M. Kelley is representing the United States in this case.

A criminal complaint merely contains allegations. All defendants are presumed innocent unless proven guilty in a court of law.

# # #

COLUMBUS, Ohio – A federal indictment accuses three central Ohio men of conspiring to launder the proceeds of online romance scams for more than five years.

Those charged include Robert Asante, 35, of Canal Winchester, Kwame Yeboah, 36, of Columbus, and Eric Ahiekpor, 49, of Lewis Center.

According to the indictment, which was unsealed yesterday, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.

After establishing relationships, perpetrators of the romance scams allegedly requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were allegedly in the names of the defendants, in the names of the defendants’ family members, and in the names of the defendants’ companies.

The indictment alleges that the funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, the defendants conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, and the United States, and more. It is alleged that part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.

“The defendants allegedly laundered proceeds earned from an online romance scam through a series of financial transactions intended to conceal the fraud,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Conspiracy to launder money is punishable by up to 20 years in prison and a $500,000 fine, as well as forfeiture of any proceeds involved in the conspiracy. U.S. Marshals arrested Ahiekpor Tuesday. He was arraigned before a U.S. Magistrate Judge yesterday. Asante and Yeboah have court appearances scheduled for Monday, June 29.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); and Pete Tobin, U.S. Marshal for the Southern District of Ohio announced the charges. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

# # #

COLUMBUS, Ohio – Laquise O. Johnson, 31, of Columbus was sentenced to 36 months in prison for receiving shipments of marijuana and methamphetamine from California at a post office box he rented where he worked and for stealing items from the mail.

According to court documents, Postal Inspectors began investigating reports of drug trafficking between Ohio and California in 2017. They determined that Johnson, a processing clerk, had rented a post office box to facilitate the drug trafficking. They seized one parcel containing 1,438 grams of methamphetamine and seized another parcel with 493 grams of marijuana from Johnson after he retrieved it from the post office box at the Oakland Park post office.

Johnson also admitted that he had stolen mail containing a Bluetooth speaker and art supplies.

Johnson pleaded guilty on June 5, 2019 to one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and one count of theft of mail.

David M. DeVillers, United States Attorney for the Southern District of Ohio; and James Giehl, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division announced the sentence imposed today by Senior U.S. District Court Judge James L Graham. Special Agents with the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, also participated in this investigation. Assistant United States Attorney Jonathan J.C. Grey represented the United States in this case.

# # #

COLUMBUS, Ohio – Angelica O. Preti, 45, of Ontario, Canada, was sentenced in U.S. District Court here today to 18 months in prison for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally exporting gas turbine engine parts from the United States to Iran.

According to court documents, Preti worked as the export operations manager at a Canadian forwarding and customs brokerage service provider that had significant business in the United States, including in the Southern District of Ohio.

Preti helped facilitate the shipment of U.S.-origin gas turbine engine parts and valve assemblies and connectors used for industrial pipelines in the gas and petrochemical (oil refinement) industry to Iran in deliberate violation of a U.S. embargo and trade sanctions. Iran has been subject to United States embargo sanctions since 1979.

“Preti made a calculated decision to harm the United States by supplying enemies abroad,” U.S. Attorney David M. DeVillers said. “Preti also attempted to cover up her crimes by directing the filing of false electronic export information, and attesting that the final destination of goods was not Iran. Preti also employed a number of additional methods to obscure the fact that Iran was the end-user for the shipments.”

“The U.S. is engaged in a maximum-pressure campaign to curb Iran’s malign influence in the Middle East, and we will not tolerate illegal exports to Iran that seek to undermine that effort” said Commerce Department Special Agent in Charge Nasir Khan.  “We will work with our law enforcement partners and the Department of Justice to vigorously investigate and pursue prosecution of violators.”

In addition to the charged conduct, during her time as export operations manager at UE Canada Inc., the company was involved with 47 shipments exported from the United States. Of these shipments, 23 were ultimately traced as destined to Iran. 

Preti is the second person charged as a result of the investigation into illegal shipment of industrial equipment of Iran. Behrooz Behroozian, who owned and operated Comtech International in Dublin, Ohio, was sentenced in October 2019 to serve 20 months in prison for his crimes.

David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General of the Department of Justice’s National Security Division; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Court Judge James L Graham. Assistant United States Attorneys Douglas W. Squires and S. Courter Shimeall, as well as Senior Trial Attorney William Mackie with the Department of Justice’s National Security Division Counterintelligence and Export Control Section are representing the United States in this case.

# # #

COLUMBUS, Ohio – A federal grand jury has indicted a Scioto County man and several of his family members and associates with charges related to a child sex trafficking operation. The man allegedly exchanged drugs obtained in Columbus and elsewhere for sexual access to the children of drug-addicted mothers.

 

Larry Porter

According to court documents unsealed today, agents with the FBI’s Child Exploitation Task Force began investigating Larry Dean Porter, 69, of Wheelersburg, Ohio, in April 2019 following reports from several sources that Porter was involved in sexually abusing male and female minors with consent of the minors’ parents in exchange for illegal drugs from Porter.

 

In March 2020, Porter was arrested on local charges during a human trafficking sting operation by the Jackson County Sheriff’s Office. In Facebook messages coordinated by law enforcement, Porter allegedly offered to pay $80 in exchange for access to a 7-year-old girl. He was arrested after arriving at a pre-arranged meeting location and allegedly stating he would “be done around midnight” and could return the girl then.

 

According to victims and sources in the ongoing investigation by the FBI and the Ohio Bureau of Criminal Investigations (BCI), Porter sexually abused children and produced child pornography kept on flash drives that Porter used extreme methods to conceal.

 

He would give illegal narcotics to drug-addicted parents in exchange for sexual access to the minor victims. It is alleged he often instructed the parents to sexually abuse their own children and recorded it to use as blackmail.

 

Additionally, according to the criminal complaint, Larry Porter made numerous recorded phone calls and mailed three letters while incarcerated in Jackson County in an attempt to have his family members and associates lie under oath, convince other witnesses to lie to law enforcement, or to convince sources not to provide information to law enforcement.

 

Porter is charged in a 13-count indictment with conspiring to sex traffic children (15 years up to life in prison),  attempting to sex traffic children (15 years  up to life), producing child pornography (15 to 30 years), possessing child pornography (up to 10 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years) and conspiring to witness tamper (up to 20 years).

 

Denna Sue and Crystal D. Porter

It is alleged that in the days immediately following Porter’s arrest in Jackson County, two of Porter’s daughters and two of his friends were seen making numerous trips to Porter’s residence and property. Denna Sue, 32, of Wheelersburg, Ohio, and Crystal D. Porter, 39, of Columbus, were seen digging holes in the ground on the property.

 

On March 20, 2020, officers and agents searched the area in which the daughters were seen digging. They discovered an SD memory card buried inside a glass jar. Court documents allege the memory card contained images of child pornography taken in Porter’s bedroom.

 

Denna Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).

 

Crystal Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).

 

Porter’s associates Frank E. Andrews, 68, of Wheelersburg, Ohio, and W. David Cole, 62, of Portsmouth, Ohio were also seen on Porter’s property.

 

Frank Andrews

Frank Andrews is charged with conspiring to sex traffic children (15 years up to life in prison), possessing child pornography involving a prepubescent child (up to 20 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).

 

Agents recovered eight DVDs from Andrews’ residence that contained multiple videos of child pornography. Forensic evidence indicated the file titles match those on Porter’s computer.

 

David Cole

Cole is charged with conspiring to sex traffic children (15 years up to life in prison), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).

 

Facebook messages allegedly show conversations between Cole and Porter discussing child sex trafficking victims. Cole also allegedly removed and destroyed evidence from Porter’s home.

 

Wayne Porter

During a recorded jail call, Porter and his cousin, Erroll Wayne Porter, Sr. (Wayne), 69, of Wheelersburg, Ohio, discussed an individual they believed was a source for law enforcement. Wayne Porter said he “got some things working there, trying to take him down.” In a later call, Porter told Wayne, “Go out and make sure that idiot don’t do something. If you have to put a slug in that son-of-a-bitch.”

 

Wayne Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), and conspiring to tamper witnesses (up to 20 years).

 

 

Joshua Aldridge

Joshua David Aldridge, 36, of South Webster, Ohio, is charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).

 

It is alleged that Aldridge transported minor victims to Porter’s home and received drugs from Porter in return.

 

Charity and Ronnie Rawlins

Charity Ann Rawlins, 41, of South Webster, Ohio, and Ronnie L. Rawlins, 47, of Oak Hill, Ohio, are also charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).

 

The couple allegedly took a seven-year-old child to Porter’s residence on a regular basis to traffic the child sexually in exchange for pills. This alleged abuse occurred a few times per week for up to five years.

 

A number of other adult women allegedly involved in this conspiracy have been charged locally.

 

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; Ohio Attorney General Dave Yost; Jackson County Sheriff Tedd E. Frazier; Jackson County Prosecutor Justin Lovett; Scioto County Sheriff Marty V. Donini and Scioto County Prosecutor Shane A. Tieman announced the charges. Assistant United States Attorneys Heather A. Hill and Jessica W. Knight, as well as Special Assistant United States Attorney Jennifer Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, are representing the United States in this case.

 

Criminal complaints and indictments merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

 

If you believe you may be a victim, or have information related to this case, please call the FBI at 614-315-4923.

 

# # #

DAYTON – A Dayton woman appeared in federal court today on charges related to two coronavirus relief Paycheck Protection Program loans.

 

Nadine Consuelo Jackson, 31, was charged federally with bank fraud and 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. The United States has seized more than $1.2 million dollars related to this alleged fraud.

 

It is alleged 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, the charges allege 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 an affidavit filed in support of the criminal complaint, on two occasions Consuelo Jackson listed 73 Extract LLC employees with payroll wages totaling more than $800,000 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.

 

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.

 

“The Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help millions of Americans during this pandemic and the pursuit of those who allegedly participate in pandemic related scams will long remain a significant priority of IRS Criminal Investigation and our federal law enforcement partners,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

 

Consuelo Jackson appeared in federal court today at 11:30 a.m. before U.S.Magistrate Judge Sharon L. Ovington. 

 

Bank fraud is a crime punishable by up to 30 years in prison. Making a false statement within the jurisdiction of a federal agency carries a potential maximum sentence of five 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.

 

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

 

# # #

COLUMBUS, Ohio – Gage Allen Davis, 24, has been sentenced to 96 months in federal prison and Billy Ray Lewis, 39, to 72 months in federal prison for their roles in a methamphetamine trafficking ring in central Ohio in 2019. Both men are from Columbus.

 

Court documents say investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Division of Police arranged a series of undercover purchases and bought more than 576 grams of meth from the men on separate occasions in September and October 2019.

 

Davis and Lewis were arrested in November 2019. They each pleaded guilty in February 2020 to one count of conspiracy and one count of drug trafficking.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentences imposed June 19 by Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Salvador A. Dominguez represented the United States in this case.

 

# # #

COLUMBUS, Ohio – A Guatemalan man pleaded guilty today in U.S. District Court to charges related to a Colombia-to-America cocaine conspiracy.

 

In October 2019, Francisco Golon-Valenzuela was extradited to Columbus from Panama.

 

As part of his plea, Golon-Valenzuela admitted he conspired with others to ship hundreds of kilograms of cocaine from Colombia, via sea and land, through Central America and Mexico to the United States.

 

Golon-Valenzuela, also known as “El Toro,” was indicted in September 2018. Specifically, Golon-Valenzuela pleaded guilty to conspiring to distribute at least five kilograms or more of cocaine on the high seas, which is a federal crime punishable by 10 years up to life in prison.

 

According to court documents, as part of the conspiracy individuals would use “load” coordinators to assist with logistics of cocaine shipments, locate drivers and boat operators for narcotic-laden vehicles and vessels, and secure shared investments from multiple co-conspirators in specific cocaine shipments.

 

Fishermen and other commercial maritime laborers were allegedly recruited by conspirators to transport cocaine and refueling vessels. 

 

Conspirators allegedly paid a “tax” or “fee” to send cocaine through areas controlled by a different drug trafficking organization or cartel.

 

Members of the conspiracy allegedly shared information on the activities and locations of law enforcement and military personnel assigned to interdict narcotics shipments. It is alleged co-conspirators also sheltered individuals who were at risk of extradition to other countries.

 

Low-level co-conspirators would allegedly take responsibility for an entire load of seized cocaine in order to free higher-level members.

 

Cocaine shipments seized in this case thus far include:

• 880 kilograms of cocaine seized by the United States Coast Guard near the Guatemalan/Mexico border on May 19, 2016;
• 720 kilograms of cocaine seized by the United States Coast Guard northwest of the Galapagos Islands on Aug. 18, 2017; and
• 34 kilograms of cocaine seized by the Guatemalan Policia National Civil in San Marcos, Guatemala on or about Nov. 26, 2017.
   
  Four defendants were transported to Ohio for prosecution in September 2017, following the 720 kilogram seizure near the Galapagos Islands. That seizure alone included more than 1,584 pounds of cocaine, equaling an approximate street value of $25 million.
   
  David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Ohio State Highway Patrol Superintendent Col. Richard S. Fambro announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorneys Jonathan J.C. Grey and Elizabeth Rabe are representing the United States in this case.
   
  # # #

COLUMBUS, Ohio – A registered sex offender was sentenced today in U.S. District Court to 500 months in prison for crimes related to sex trafficking a 14-year-old girl.

 

Nicholas Salvadore Cochran, 28, of Lima, Ohio, pleaded guilty in January 2020 to one count of sex trafficking a minor, and one count of committing a sex offense against a minor as a registered as a sex offender.

 

As part of his sentence, Cochran will pay full restitution to the victim and others impacted by the crimes, remain under court supervision for the rest of his life, pay a fine determined by the court and pay special assessments of $10,200.

 

“While unthinkable to most of us, sex trafficking of children is real and organized,” said U.S. Attorney David M. DeVillers. “We must recognize the unthinkable and report suspicious activity for the sake of our most vulnerable. I would like to tell you that this is an isolated incident. It is not.” 

 

Cochran was arrested on Aug. 9, 2019, as part of Operation Independence Day – a nationwide FBI-led operation to identify and arrest sex traffickers and recover child victims. He has been in custody since his arrest. A federal grand jury indicted him on Sept. 6, 2019.

 

According to court documents, police began searching for a 14-year-old girl reported missing from Celina, Ohio in July 2019. Family members believed her to be in the Dublin, Ohio area with a man named “Nick.” Local law enforcement and the FBI began investigating information known about her to help locate the missing girl. The investigation included examination of ads posted on websites used for advertising prostitution.

 

Investigation of the advertisements revealed that between July 9 and July 14, Cochran posted approximately 25 ads for the Lima-Findlay, Dayton and Columbus areas. He posted ads for sex with the child victim daily, and those ads contained nude photographs of the minor.

 

Allen County Sheriff’s deputies arrested Cochran on a traffic stop in Lima, Ohio on an outstanding failure to appear warrant and seized Cochran’s phone. The victim called her parents from a hotel in Lima and was recovered.

 

Cochran had been convicted of two counts of sexual battery and one count of attempted sexual battery in Henry County, Ohio in 2009.

 

“The selling of a human being for the purpose of sex is Stephen King-level evil,” Ohio Attorney General Dave Yost said. “I am proud of Jennifer Rausch and our federal and local partners for bringing this case to a just conclusion.”

 

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; Ohio Attorney General Dave Yost; Celina Police Chief Thomas Wale; Allen County Sheriff Matthew B. Treglia; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the sentence imposed by U.S. District Judge Michael H. Watson. Assistant U.S. Attorney Heather A. Hill and Special Assistant U.S. Attorney Jennifer Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, represented the United States in this case.

 

# # #

CINCINNATI – The pastor of a Sharonville church pleaded guilty via video conference in U.S. District Court today to coercion and enticement for sexually coercing a minor female member of the church.

 

Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and August 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 plea agreement, Guerrero 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.

 

The parties involved in his case have recommended a sentence of 10 years in prison.

 

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 plea entered into today before U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.

 

# # #

COLUMBUS, Ohio – According to a federal indictment filed today, the woman accused of shooting a Columbus police officer during a search warrant on May 28 also allegedly possessed in her home fentanyl, nine firearms, nearly $20,000 in cash, 13 cell phones and multiple magazines of ammunition. An additional firearm was found in her car. 

 

A grand jury charged Rita Gray, 68, of Columbus, in each of the indictment’s six counts.

 

According to court documents, on May 28, 2020, Gray shot and seriously wounded 53-year-old Columbus Police Officer Russ Weiner while Weiner participated in executing a narcotics-related search warrant at Gray’s residence on Chelford Drive.

 

Documents detail that agents and officers knocked on the door of the residence and announced their presence. After the knock and announce went unanswered, agents and officers made entry into the residence. 

 

Upon entering the residence, law enforcement executing the warrant took on gunfire from Gray, who was present in the vicinity of an interior hallway. Gray was apprehended shortly thereafter, with two semiautomatic Glock manufactured pistols in close proximity.     

 

In January 2020, state and federal law enforcement began an investigation into suspected drug trafficking involving Rita Gray and her son, Eric Gray, among others. The investigation remains ongoing.

 

Today’s indictment also charges Eric Gray, 31, with conspiring to possess with intent to distribute fentanyl and methamphetamine. The drug conspiracy is punishable by 10 years up to life in prison.

 

Rita Gray is charged in the drug conspiracy, and with possessing with the intent to distribute fentanyl, assault of an officer, two counts of discharging a firearm during and in relation to a drug trafficking crime and one count of discharging a firearm during and in relation to a crime of violence. She faces 20 years up to life in prison.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Columbus Police Chief Thomas Quinlan; Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); James Giehl, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; Ohio Attorney General Dave Yost’s Bureau of Criminal Investigation (BCI) and Franklin County Prosecutor Ron O’Brien announced the charges. Assistant United States Attorneys S. Courter Shimeall and Salvador A. Dominguez are representing the United States in this case.

 

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

# # #

COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 41 months in prison for crimes related to a 2018 summer shooting that involved 5-year-old and 10-year-old victims.

 

Keveante Deshawn Smoot, 28, pleaded guilty in May 2020 to illegally possessing a firearm as a previously convicted felon.

 

According to court documents, on August 11, 2018, Columbus Division of Police officers responded to Weinland Park on Summit Street on a call for service regarding several shots fired at the park. 

 

Two of the reported victims were adults and two were children, ages five and 10. Smoot was identified as a victim in the shooting, and was driven to a local hospital by an associate to receive medical care for a gunshot wound to his arm.

 

The associate’s car was later searched as evidence related to the shooting, and Smoot’s DNA was discovered on a 9mm pistol in the car.

 

Further, according to an affidavit in Smoot’s case, jail emails and calls between Smoot and others state that Smoot possessed a firearm at the Weinland Park shooting and that he fired shots.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Jonathan J.C. Grey and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.

# # #

COLUMBUS, Ohio – David M. DeVillers, United States Attorney for the Southern District of Ohio, announced today that fifteen local and two Ohio law enforcement agencies have been awarded more than $18 million in funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS) to hire an additional 134 full-time law enforcement officers to support their community policing efforts.

 

The local agencies will receive more than $16 million. The two state agencies will receive approximately $2 million.

 

Funding recipients in the Southern District of Ohio, the number of officers they plan to hire and the amount they received include:

 

AGENCY

NUMBER OF OFFICERS

AMOUNT

Aberdeen Police Department

1

$104,101

Cambridge, City of

2

$250,000

Cincinnati, City of

86

$10,750,000

Dayton, City of

5

$625,000

Fairborn, City of

2

$250,000

Greenfield, City of

1

$125,000

Hamilton County Sheriff's Office

10

$1,250,000

Jackson County Sheriff's Department

2

$250,000

Middletown, City of

2

$250,000

Mt. Healthy, City of

2

$250,000

New Boston Police Department

2

$250,000

Ohio Department of Rehabilitation And Correction

4

$752,014

Ohio State Highway Patrol

5

$1,281,658

Trotwood, City of

4

$1,039,007

Union City

2

$219,461

Washington County Sheriff's Department

1

$125,000

Whitehall Division of Police

3

$375,000

 

“Looking over this list, I see cities, counties and villages committed to hiring new officers to build trust with the people they serve,” DeVillers said. “We will help these agencies continue to expand their community policing efforts.”

 

The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers.

 

CHP applicants were required to identify a specific crime and disorder problem focus area and explain how the funding will be used to implement community policing approaches to that problem focus area.  Fifty-seven percent of the awards nationwide will focus on a variety of issues including school-based policing to fund school resource officer positions, building trust and respect, and opioid education, prevention, and intervention.  The rest will focus on violent crime.

 

The COPS Office received nearly 1,100 applications requesting more than 4,000 law enforcement positions. To learn more about CHP, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov .

 

# # #

DAYTON – Kevin A. Kovacs, a former longtime Beavercreek police officer who was arrested in April, was indicted by a federal grand jury yesterday.

 

In April 2020, Kovacs was arrested by criminal complaint and charged with producing, distributing, receiving, transporting and possessing child pornography, as well as tampering with a witness or informant.

 

The 10-count indictment filed Tuesday evening alleges Kovacs, in March and April 2015, coerced a minor to engage in sexually explicit conduct for the purpose of creating child pornography.

 

Kovacs is also charged with multiple counts of distributing, receiving, transporting and possessing child pornography, as recently as December 2019.

 

Finally, in June 2019, Kovacs allegedly intimidated, threatened or corruptly persuaded an individual in hopes of obstructing or impeding communication with federal authorities about this investigation.

 

David M. DeVillers, United States Attorney, Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Fairborn Police Chief Terry Bennington and Beavercreek Police Chief Dennis Evers announced the indictment. Assistant United States Attorney Dwight Keller is representing this United States in this case.

 

If you have any information related to this case, please contact the FBI at 513-421-4310 or the Fairborn Police Department at 937-343-8854.

 

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