Southern District of Ohio

COLUMBUS, Ohio – A Columbus couple have agreed to plead guilty to charges related to a health-care fraud scheme that involved compound creams prescribed to city employees and first responders.

 

Amy M. Kirk and Ryan D. Edney have agreed to plead guilty to one count of conspiring to commit health care fraud, a crime punishable by up to 10 years in prison.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, United States Health and Human Services Office of Inspector General (HHS OIG),  Ohio Attorney General Dave Yost, Leigh-Alistair Barzey, Special Agent in Charge, DCIS-Northeast Field Office, and Jim Wernecke, Director, Ohio Bureau of Workers' Compensation special investigations department announced the case.

 

According to court documents, Kirk was a nurse practitioner at Pain Management Consortium of Ohio (PMCO). Her fiancé and co-defendant, Edney, was the president of RX Health Solutions, LLC.

 

From 2014 until 2017, Kirk and Edney conspired to defraud Medicaid and other health insurers and enrich themselves by billing for compound cream medications that were not medically necessary. Kirk also wrote prescriptions that were based on false medical conditions. In some instances, prescriptions were written without ever meeting or examining the patient or were issued in exchange for kickback payments.

 

Kirk and Edney would recruit patients for compound pain creams, scar creams, migraine creams or wellness pills.

 

“It was part of the conspiracy that the defendants targeted city employees, including police officers, firefighters and teachers, because the government insurance programs were more inclined to pay for compound creams,” U.S. Attorney Glassman said. “Medications were typically prescribed with 11 refills to maximize reimbursement from the health care benefit programs and were shipped directly to patients.”

 

Kirk completed patient information sheets, often falsifying physical exam information and medical diagnoses. Kirk was then paid for each prescription she authored via kickbacks routed to Edney’s RX Health Solutions company, or directly to Edney himself.

 

The couple caused more than $751,000 in fraudulent insurance claims to Medicaid, Tricare and private insurance. Tricare provides health care benefits to active duty service members, retired service members and their dependents.

 

Kirk and Edney personally received nearly $350,000 in kickbacks.

 

As part of their proposed pleas, Kirk and Edney would pay the $750,000 in restitution.

 

“Fake conditions, ‘wellness pills’ and examinations that never happened… this level of fraud would make a snake oil salesman blush,” Ohio Attorney General Yost said. “I am proud of our staff, and our partners in the U.S. Attorney’s Office for bringing these two to justice.”

 

The Court will consider the defendants’ offer of plea at a future plea hearing, which is yet to be scheduled.

 

U.S. Attorney Glassman commended the investigation of this case by HHS OIG, the Ohio Attorney General’s Medicaid Fraud Control Unit, DCIS and Ohio Bureau of Workers' Compensation, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are representing the United States in this case.

 

# # #

COLUMBUS, Ohio – David L. Dobbins, 39, of Urbancrest, Ohio, was sentenced in U.S. District Court to 240 months in prison for dealing narcotics that resulted in an overdose death.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Grove City Police Chief Jeffrey A. Pearson announced the sentence imposed yesterday by U.S. District Judge Algenon L. Marbley.

 

According to court documents, in February 2017, Dobbins distributed heroin, cocaine and fentanyl that caused the death of at least one known individual. The victim was found dead at the Star City Inn in Grove City. On February 8, 2017, after four 9-1-1 hang up calls to the Grove City 911 Center, a man stated someone had overdosed in the hotel and then the call disconnected.

 

When law enforcement arrived, no one was in the room with the victim. Cellular data and DNA evidence linked Dobbins to the distribution of the fatal narcotics.

 

Dobbins was arrested April 14, 2018 and has been in custody since. He was charged by an original indictment in October 2018 and a superseding indictment in November 2018.

 

Dobbins pleaded guilty in July 2018 to three counts of possessing with the intent to distribute heroin, two counts of possessing with the intent to distribute crack cocaine and one count of distributing heroin and cocaine.

 

U.S. Attorney Glassman commended the investigation of this case by the DEA and Grove City Police, and Assistant United States Attorneys Timothy D. Prichard and David J. Bosley, who are prosecuting the case.

 

# # #

CINCINNATI – Three Butler County men have been arrested and charged in a conspiracy to ship stolen baby formula and other goods.

 

Khalil Yacub, 44 of Liberty Township, Ohio, Khalil Jaghama of West Chester, Ohio, and Jasser Saleh, 41 of Liberty Township, Ohio, were each arrested this morning.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and Colerain Township Police Chief Mark C. Denney announced the charges.

 

According to an affidavit filed in support of the criminal complaint, Yacub’s family owns and operates the Pit Stop, a convenience store located on Galbraith Road in Colerain Township.

 

Employees of the Pit Stop, including Yacub, Jaghama and Saleh, would allegedly pay individuals (often drug addicts) to work as “boosters” to steal baby formula. The defendants would pay boosters with cash from the convenience store register for the stolen formula. For example, boosters might sell cans of stolen baby formula to the Pit Stop for $5 per can. On June 30, 2018, alone, one woman brought 40 cans of baby formula to the Pit Stop to be sold.

 

Before the defendants would purchase the stolen baby formula from boosters, they would often take a photo of the booster’s driver’s license or state ID in order to prevent the boosters from reporting co-conspirators to the police. Defendants also allegedly brandished a handgun and used a taser to intimidate and control buyers.

 

It is alleged that between 2017 and January 2019, the defendants stored and shipped hundreds of cans of baby formula for resale to other parts of the country.  The defendants used a storage facility to warehouse the stolen goods. A GPS monitor placed one an Enfamil can in the storage facility showed that the product was transported interstate to the West Coast.

 

The defendants are charged with conspiring to transport and transporting stolen goods. The transporting of stolen goods is a crime punishable by up to 10 years in prison. Conspiracy to commit the crime is punishable by up to five years in prison.  The defendants are also charged with unlawful possession of a means of identification, which carries a potential maximum sentence of five years in prison.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI and Colerain Township Police Department and the assistance of Kroger, as well as Assistant United States Attorneys Timothy S. Mangan and Karl P. Kadon, who are prosecuting the case.

 

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

# # #

COLUMBUS, Ohio – Isaias Alvarado, also known as Cabo, 46, of Columbus, pleaded guilty in U.S. District Court to three counts of murder in aid of racketeering.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, 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 Interim Columbus Police Chief Thomas Quinlan announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.

Alvarado is one of 23 individuals charged in a second superseding indictment in February 2018 who are alleged to be members and associates of MS-13 in Columbus.

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.

The second superseding indictment alleges 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.

As part of his plea, Alvarado has accepted responsibility for his role in the murders of Serrano-Ramos, Villeda and Martinez-Diaz. All three murders occurred in Columbus. Alvarado faces a maximum sentence of life in prison.

U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.

# # #

CINCINNATI – A federal grand jury has charged three Cincinnati men in a narcotics conspiracy punishable by at least 10 years up to life in prison in an indictment returned here February 6 and unsealed today.

 

Derek Ragan (Duke), 49, Anthony Sanderson (Pea Head), 63, and Lawrence Bell (LB), 66, are charged with conspiring to collectively distribute more than 400 grams of fentanyl. 

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Cincinnati Police Chief Eliot K. Isaac announced the charges, which followed the extensive investigation by the FBI’s Safe Streets Task Force.

 

According to the indictment, fentanyl and other drugs were brought into the Cincinnati area where they were further processed, cut, combined, packaged and stored prior to distribution. The co-conspirators allegedly used “Duke’s Place”  on Oliver Street in Cincinnati to distribute the illegal opioids.

 

The indictment also charges eight counts of distributing fentanyl, one count of possessing fentanyl, one count of using a premises for drug distribution and one count charging Ragan with illegally possessing a firearm.

Agents seized more than $10,000 in cash, additional narcotics, and the firearm from two residences while executing search warrants in this case on November 16, 2018.

 

Conspiracy to distribute more than 400 grams or more of fentanyl is a federal crime punishable by 10 years up to life in prison. Distributing and possessing with the intent to distribute 40 grams or more of fentanyl are crimes that carry a potential sentence of five to 40 years in prison. Operating a drug premises is punishable by up to 20 years in prison. Possessing a firearm as a convicted felon is punishable by up to 10 years in prison.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI and Cincinnati Police, as well as Assistant United States Attorney Karl P. Kadon and Criminal Chief Kenneth L. Parker, who are prosecuting the case.

 

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

# # #

COLUMBUS, Ohio – John C. Fortner, 44, of Chillicothe, was sentenced in U.S. District Court to 240 months in prison for attempting to coerce a minor while registered as a sex offender.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Sheriff Dallas Baldwin, as well as members of both the FBI’s Cyber Crimes Task Force and the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force, announced the sentence handed down today by U.S. District Judge Michael H. Watson.

 

According to court documents, a task force officer with the FBI Cyber Crimes Task Force was posing undercover online as the mother of minor children. In August 2017, the officer posted a web advertisement stating he was looking to chat with people interested in “taboo fetishes.”

 

Fortner emailed the officer asking “can we do your daughter or son?”

 

Fortner asked to be connected to “any other that would let me f***” and began communicating with a second undercover officer, who investigates cyber crime with the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force. He told that officer he heard the persona had a nice daughter who was 13 years old. He asked “you and your daughter play with guys much?” Fortner also asked if the daughter was cute and offered to meet with them.

 

Fortner and the officer planned to meet in a public place, and, if the meeting went well, to later meet in a hotel for sexual purposes.

 

On August 21, 2017, Fortner asked the officer to pick him up at a gas station in Chillicothe for their meeting. Fortner was subsequently arrested.

 

Fortner was convicted in 2015 in Texas for possession of child pornography and in 2016 in Belmont County, Ohio for importuning and attempted unlawful sexual conduct with a minor. As a result, he was a registered sex offender at the time of his new offense.

 

Fortner pleaded guilty in this current case in May 2018.

 

U.S. Attorney Glassman commended the cooperative investigation by the FBI Cyber Crimes Task Force and the Franklin County ICAC, as well as Assistant United States Attorneys Heather A. Hill and Noah R. Litton, who are representing the United States in this case. 

 

# # #

COLUMBUS, Ohio – A total of five of 19 Columbus men charged federally as being associated with a local Crips gang has pleaded guilty. The men were indicted in September 2018 and charged in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes.

 

Terrance Pyfrom, 21, Derrick Thornton, 29, and Donovan Reed, 26, all pleaded guilty today. Reed pleaded to one count of conspiring to distribute crack cocaine. Andrew Harris, 30, pleaded guilty on February 7. He and Thornton pleaded guilty to one count of conspiring to distribute more than 100 grams of heroin. Dominique Bryant, 26, pleaded guilty on January 15. He and Pyfrom pleaded guilty to one count of participating in the racketeering conspiracy.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Interim Columbus Police Chief Tom Quinlan, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the pleas entered into before U.S. District Judge Michael H. Watson.

According to court documents, the defendants are members and associates of the Trevitt and Atcheson Crips gang known as T&A.

 

The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.

 

The boundaries of the gang’s territory are marked by Mt. Vernon Avenue to the south, Leonard Avenue to the north, Taylor Avenue to the east and St. Clair Avenue to the west.

Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.

The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.

 

Specifically, co-conspirators are charged with five murders:

 

the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;

the murder of William Moore on March 15, 2013;

the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;

the murder of Quincy Story on January 24, 2015; and

the murder of Deaonte Fisher on March 4, 2016.

 

T&A engaged in a long-term operation of consistent transportation of heroin and crack from Columbus to Portsmouth, Ohio, for sale in various “trap houses.” In the summer of 2015, T&A, under the leadership of Eric Henderson, Sr., began to deliver large amounts of heroin, crack, and oxycodone from Columbus to Portsmouth on a weekly basis.  Female associates and drug-addicted “mules” transported the drugs at the direction of T&A members and associates. The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members, including Thornton and Harris. According to their pleas, between the summer of 2015 and September 2018, Thornton and Harris were personally responsible for distributing and possessing with intent to distribute between 100 grams and 400 grams of heroin as part of T&A’s Portsmouth Drug Operations. The proceeds from the drug sales in Portsmouth were then used to purchase firearms that were used in ongoing gang wars with rival gangs in Columbus.

 

Likewise, in the summer of 2015, T&A members began to deliver large amounts of crack and oxycodone from Columbus to Huntington, W.Va. on a weekly basis.  The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members, including Reed. Reed was personally responsible for distributing and possessing with intent to distribute between 28 grams and 112 grams of crack as part of T&A’s West Virginia Drug Operation. 

Pyfrom admitted to shooting at members of the Easthaven Bloods gang on August 8, 2014, after a drive-by shooting. He also admitted to selling crack cocaine and sharing firearms and “trap” houses in order to facilitate the sale of the drug.

Others charged in this case include:

Name

Also Known As

Age

Charles Carson

 

23

Jonathan Dantzler

Jesus

26

Terrell Hansard

T Body

21

Eric Henderson, Jr.

Lil Go, Little E

19

Eric Henderson, Sr.

Easy

39

Michael Henderson

Bang

20

Steve Henderson, Jr.

Big Go, Tana

25

Brandon Martin

Gunner

26

Lee Devine McCrae

Capone

22

Shawn Nelms

Mook

25

Deswan Robinson

Dezzy

25

Thomas Seals

Bhomo

24

Marcus Walton

Ox, Wax

35

Michael Watson

Sossa

25

 

U.S. Attorney Glassman commended the investigation of this case by ATF, FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers, Kevin W. Kelley and Noah R. Litton, who are prosecuting the case.

# # #

COLUMBUS, Ohio – A federal grand jury here has charged nine Southern Ohio men with crimes related to the armed robberies of 11 Ohio pharmacies.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the charges that were unsealed today.

 

According to the indictment, from April to October 2018, co-conspirators would present demand notes at pharmacies that stated they were completing an armed robbery and they would kill the employees of the pharmacy if the employees did not comply with demands for narcotics listed in the note.

 

The robberies occurred on:

April 16, 2018, at Rite Aid on Linden Avenue in Dayton;

April 26, 2018, at Rite Aid on McAdams Drive in New Carlisle;

May 22, 2018, at CVS on Sawmill Road in Columbus;

June 2, 2018, at CVS on Montgomery Road in Norwood;

June 7, 2018, at CVS on Montgomery Road in Silverton;

July 5, 2018, at Rite Aid on North Wolfe Creek Street in Brookeville;

August 4, 2018, at Rite Aid on West National Road in Vandalia;

August 8, 2018, at Rite Aid on South Allison Avenue in Xenia;

August 17, 2018, at Rite Aid on Central Avenue in Middletown;

September 5, 2018, at Rite Aid on Linden Avenue in Dayton; and

October 15, 2018, at Rite Aid on Union Boulevard in Englewood.

 

Those charged include:

Name

Age

City of Residence

Courtney A. Byrd

21

Trotwood

Damar L. Kerley

21

Dayton

James P. Taylor, Jr.

19

Dayton

Cameron D. Redd

21

Cincinnati

Ja’Mical L. Betts

20

Dayton

Dasean Whitehead

19

Dayton

Justin J. Jefferson, Jr.

19

Dayton

Rodney A. Robbins II

19

Trotwood

Philmore B.P. Alexander IV

19

Dayton

 

Defendants are charged with conspiring to commit Hobbs Act Robbery, interfering with interstate commerce by robbery and possessing with the intent to distribute Oxycodone. Each of the three crimes is punishable by up to 20 years in prison.

 

U.S. Attorney Glassman commended the cooperative investigation of this case by ATF, the Columbus, Dayton, Norwood, Brookeville, Vandalia, Xenia, Middletown and Englewood police departments, Clark County, Montgomery County and Hamilton County sheriff’s offices and the Montgomery County Prosecutor’s Office, as well as Assistant United States Attorneys David J. Bosley and Kelly Norris, who are prosecuting the case.

 

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

# # #

CINCINNATI – A federal grand jury has charged two members of an Ohio militia group with violating the National Firearms Act in an indictment unsealed here today.

 

Ryan D. King, 37, of Franklin, Ohio and Randy D. Goodman, 53, of Ripley, Ohio, were each charged with two counts related to possessing unregistered explosive devices. King and Goodman were both arrested today.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.

 

According to the indictment, King and Goodman were members of a militia group operating in the Southern District of Ohio. King and Goodman established a small subset of the militia group and referred to it as the “Special Projects Team.” The defendants advocated that this Team construct, use and stockpile explosives they called “crater makers.”

 

The defendants allegedly conspired to possess and possessed destructive devices in violation of the National Firearms Act, specifically, bombs and parts necessary to make pipe bombs.

 

In January 2019, King and Goodman allegedly tested their “crater makers” at Goodman’s home in Ripley, Ohio. They discussed construction and ignition methods in detail. Goodman referenced the Boston Marathon as an example of a remote detonation system that worked.

 

They discussed which methods would be most lethal.

 

For example, Goodman asked, “Do we know how they built the pressure cookers for the Boston bombers…we are talking the same concept…”

 

King added, “If you really want explosions you would bury these in the driveway, so they go up and out. We can build land mines, I’ve already built them before, you know that.”

 

Possessing an unregistered firearm or destructive device is punishable by up to 10 years in prison. Conspiring to do so is a crime that carries a potential maximum sentence of five years in prison.

 

This case was investigated by agents with the FBI and is being prosecuted by United States Attorney Glassman and Assistant United States Attorney Sheila G. Lafferty.

 

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

# # #

CINCINNATI – Daniel Delangel Villeda, 45, a Mexican national, was sentenced in U.S. District Court to 42 months in prison for illegally reentering the United States after being removed from the country.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations announced the sentence handed down today by U.S. District Judge Timothy S. Black.

 

According to court documents, Villeda was convicted of Aggravated Vehicular Homicide and Aggravated Vehicular Assault in Hamilton County in 2002. In 2006, after serving a five-year prison term, he was removed from the United States.

 

Villeda then returned to the United States and was arrested in Nebraska in late 2010 for operating a vehicle under the influence. He was subsequently removed from the country again, and returned to the United States for a third time.

 

He was arrested for operating a vehicle under the influence again and was prosecuted in the Southern District of Ohio for illegal reentry. He was sentenced to 24 months in prison and then removed from the United States in August 2017.

 

On June 2, 2018, Villeda was arrested by the Hamilton Police Department for operating a vehicle under the influence and was then taken into custody by immigration officers.

 

U.S. Attorney Glassman commended the cooperative investigation by ICE, as well as Special Assistant United States Attorney Timothy Landry, who is representing the United States in this case. 

 

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COLUMBUS, Ohio – The co-owner of Alpha Star Health Care Inc. was sentenced today in federal court to 18 months in prison for running home health care fraud and tax fraud schemes.

 

Ali Jama, 50, of Columbus, pleaded guilty in September 2018 to one count of making false health care statements and one count of making false statements to the IRS.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Dave Yost, Lamont Pugh III, Special Agent in Charge, United States Health and Human Services Office of Inspector General, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence imposed today by U.S. District Judge Algenon L. Marbley.

 

According to court documents, Alpha, which was located on Westerville Road in Columbus, was a Medicare and Ohio Medicaid health care provider. In 2015 and 2016, Jama improperly billed Medicare and Medicaid by allowing unqualified health care aides to provide care.

 

Jama billed for services by disqualified individuals, whose criminal backgrounds prohibited them from providing direct care; and billed for services by untrained home health aides.

 

Further, Jama provided false documents to his tax preparer, claiming $0 in taxable income for 2013 and 2014. In fact, his taxable income for those years was approximately $167,000 and $301,000 respectively. As a result, the IRS sustained a loss of approximately $126,000 in tax liability.

 

Jama also provided false records to his tax preparer in terms of business expenses. Jama inflated business expenses, thereby reducing the company’s tax liability from nearly $680,000 to $81,000, resulting in addition loss of nearly $185,000 to the IRS.

 

As part of his sentence, Jama is ordered to forfeit $300,000. He was also ordered to pay $392,000 in restitution to Medicaid and approximately $311,000 in restitution to the IRS.

 

“The public rightfully expects and trusts that those who provide health care services are competent and qualified”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The utilization of unqualified personnel coupled with the billing of federally funded health care programs for their services puts a patient’s health and safety at risk, and wastes taxpayer dollars. The OIG along with our federal and state partners will continue to identify and hold accountable those who choose to engage in this type of criminal activity.”

 

“Health care fraud affects every American and this case illustrates that the IRS and our law enforcement partners are steadfast in our commitment to detecting and dismantling health care fraud schemes and holding perpetrators of these crimes accountable,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrade the integrity of our health care system and legitimate patient care.”

 

“This is a deliberate, coldhearted violation of the public trust,” Ohio Attorney General Yost said. “This joint investigation and prosecution was equally deliberate, and the sentence is just.”

 

U.S. Attorney Glassman commended the cooperative investigation of this case by the Ohio Attorney General’s Office Health Care Fraud Section, HHS Office of Inspector General, IRS Criminal Investigation and FBI, as well as Assistant United States Attorneys Douglas W. Squires, Kenneth F. Affeldt and Maritsa A. Flaherty, who are representing the United States in this case.

 

# # #

DAYTON – Shawn Bradley, 37 of Miami County, Ohio, was sentenced in U.S. District Court to 25 years in prison for creating child pornography.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence handed down yesterday by U.S. District Judge Thomas M. Rose.

 

According to court documents, between 2015 and 2018, Bradley coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography.

 

Bradley recorded himself in multiple videos sexually abusing a child under the age of 15. Bradley admitted that the videos were created on different dates during a span of nearly three years.

 

At least one video depicts the sexual abuse of a second minor. The first victim is also present in video with the second victim.

 

Bradley pleaded guilty in September 2018 to producing child pornography.

 

“At sentencing the district judge called Bradley’s conduct depraved, and I agree,” said U.S. Attorney Glassman. “The sexual exploitation of children is among the most depraved conduct that we investigate and prosecute. We’ve seen that predators come in all shapes and sizes, and they can be in any community. Victims and witnesses should not be afraid to step forward to law enforcement when they experience or suspect wrongdoing. Thanks to law enforcement’s good work, this particular predator won’t come anywhere close to a child for the next quarter of a century.”

 

“While no amount of prison time can undo the devastating harm inflicted by the defendant, this significant sentencing assures that no additional children will be harmed by this defendant,” said Special Agent in Charge Francis. “Working closely with our state, local and federal law enforcement partners, HSI will continue aggressively pursuing those who victimize the most vulnerable segment of our society, our children.”

 

U.S. Attorney Glassman commended the cooperative investigation by HSI, as well as Assistant United States Attorney SaMee Harden, who is representing the United States in this case. 

 

###

DAYTON – Cynthia A. Faulkner, 32, of Dayton, Ohio, pleaded guilty in U.S. District Court to fraudulently obtaining food card benefits and submitting false income tax documents.

 

Specifically, she pleaded guilty to three counts of making a false document, two counts of aiding in the filing of a false income tax return and one count of misprision of a felony.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture (USDA) Office of Inspector General Investigations, Midwest Region, and Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD) Office of Inspector General announced the plea entered into yesterday before U.S. District Judge Thomas M. Rose.

 

According to court documents, Faulkner made false statements on her April 2013 application to receive SNAP (Supplemental Nutrition Assistance Program) benefits. As part of her request to reapply for cash and food assistance, Faulkner misrepresented the cost of her rental residence in Mason, Ohio, for which she paid more than $2,000 per month.

 

On a similar application in 2014, Faulkner falsely reported her and her husband’s total gross income as approximately $36,000. In fact, their total gross income for the application period was nearly $91,000.

 

Faulkner also aided in the filing of materially false income tax returns by underreporting business receipts by nearly $125,000 over tax years 2011 and 2012.

 

Further, Faulkner had first-hand knowledge of a bank fraud scheme and failed to report it to authorities. The scheme involved Capital Group Properties and Consultants Corp of Mason and Cincinnati, Ohio, and National Appraisal Sources, LLC of Cincinnati, Ohio, which are both co-owned by Faulkner. The scheme included receiving payment for fraudulent real estate appraisal reports.

 

During her federal case, Faulkner submitted false documents to the Court asking for continuance on a court hearing. She told the Court she had received a hysterectomy and provided a false patient medical discharge summary from the Tampa General Hospital in Tampa, Fla. In fact, Faulkner underwent no such surgery.

 

The parties in this case have agreed upon a recommended sentence of up to 21 months in prison.

 

U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, USDA OIG and HUD OIG, as well as Assistant United States Attorney Dwight Keller, who is prosecuting the case.

# # #

DAYTON – A jury has convicted Oscar Lopez Acosta, 41, a citizen of Honduras, with being found in the United States, without authorization, after having twice been deported.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Field Office Director, United States Immigration and Customs Enforcement (ICE), announced the verdict reached yesterday evening, after a trial that began on Monday before U.S. District Judge Walter H. Rice.

 

According to records and trial testimony, in 2009, U.S. Immigration authorities encountered Acosta in Florida, an Immigration Judge in Pompano Beach, Fla., ordered that he be deported, and immigration authorities deported Acosta to his home country of Honduras.  Acosta was banned from reentering the United States for 10 years. 

 

He returned without authorization, and in 2012, immigration officials encountered Acosta again, this time near Brownsville, Texas. Acosta was convicted in federal court in Texas of illegally entering the country, a misdemeanor, and following his conviction, Acosta was again deported to Honduras. This time, Acosta was banned from reentering the United States for 20 years.

 

In October 2018, immigration officials encountered Acosta in Riverside, Ohio, after local police responded to a crash involving an uninsured car owned by Acosta and in which he was a passenger.

 

The jury convicted Acosta of one count of being found in the United States after deportation and without authorization, a crime punishable by up to two years in prison. Sentencing is scheduled for April 30, 2019.

 

U.S. Attorney Glassman commended the investigation by ICE and the assistance of the Riverside Police Department, as well as Assistant United States Attorney Andrew J. Hunt and First Assistant United States Attorney Vipal J. Patel, who are representing the United States in this case. 

 

###

 

CINCINNATI – Cory L. Gillette, 31, of Albany, Ohio, pleaded guilty in U.S. District Court to having a medicated calf slaughtered with the intention of selling it as beef for human consumption. The calf was contaminated with Gentamicin, which is not approved for use in cattle.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office announced the plea entered into today before U.S. District Judge Timothy S. Black.

 

According to the statement of facts in this case, since 2009, Gillette has operated as a livestock dealer and hauler as the owner of Cory Gillette Farm in Athens County.

 

Gillette transported a calf from Southern Ohio to a slaughter facility in Addison, Ill., where it was intended to be sold as beef for human consumption. The calf was slaughtered and subject to random inspection. During that inspection, the calf tested positive for Gentamicin, an aminoglycoside antibiotic.

 

When an investigator from the FDA’s Office of Criminal Investigations interviewed Gillette about the contaminated calf, Gillette lied and said he purchased the calf at a livestock auction in Zanesville, Ohio. In fact, he had not purchased the calf there, and misled investigators in an attempt to impede their ability to trace the contamination back to its source.

 

“As part of his plea, Gillette admitted he often bought injured, ill and potentially medicated animals at a discounted price with the intention of selling the animals to slaughter facilities and maximizing his profit,” said U.S. Attorney Glassman.

 

“The FDA, in partnership with the USDA, is vigilant in keeping antibiotics and other residual animal drugs out of the human food supply in the United States by carefully monitoring food-producing animals,” said Special Agent in Charge McCormack. “We will continue to pursue and bring to justice those who put public health at risk by selling food-producing animals that do not meet federal standards.”

 

Gillette was charged by a bill of information in September 2018. He pleaded guilty to one count of introducing adulterated food into interstate commerce, a crime punishable by up to one year in prison, and one count of making false statements to federal agents, a crime punishable by up to five years in prison.

 

U.S. Attorney Glassman commended the investigation of this case by the FDA’s Office of Criminal Investigations and Assistant United States Attorney Ebunoluwa A. Taiwo, who is representing the United States in this case.

 

# # #

CINCINNATI – Mark Harris, 59, of Versailles, Ky., pleaded guilty in U.S. District Court to knowingly failing to remove asbestos in a South Point, Ohio electric power plant.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jennifer Lynn, Special Agent in Charge, Criminal Enforcement Program, United States Environmental Protection Agency (EPA), Laurie A. Stevenson, Director, Ohio EPA and Ohio Attorney General Dave Yost announced the plea entered into yesterday afternoon before U.S. District Judge Susan J. Dlott.

 

Harris was the majority owner and operator of South Point Biomass Generation LLC. He acquired the coal burning electric power plant on Collins Avenue in South Point to convert it to a power generating plant that would use renewable energy.

 

The plant contained seven dormant coal-burning boilers along with their associated piping.

 

According to court documents, Harris commissioned an asbestos survey on the boiler room in 2008, which revealed nearly 224,000 square feet of materials containing asbestos.

 

Beginning in 2011 through October 2013, Harris and others removed approximately two and a half million pounds of metal from the facility and sold it as scrap. Harris knew significant portions of the metal removed were covered in asbestos.

 

He directed others to help him cut through the asbestos labeling on several pipes in order to obtain the scrap metal underneath. The asbestos was stripped from the metal while dry and left on each of the six floors of the power plant.

 

Harris pleaded guilty to one count of violating the Clean Air Act.

 

The parties involved have recommended two days in prison, 58 days of house arrest and 200 hours of community service as a sentence in this case. Judge Dlott will consider that recommendation at a future sentencing hearing.

 

“The defendant knew the rules regarding the legal removal of asbestos containing materials, but ignored them,” said Jennifer Lynn, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “In this way, he threatened not only the environment but the safety of those working at the site and the general public. This case demonstrates that EPA and its partner agencies will not abide those who try to make money by breaking the law.”

 

“This man will answer for his misdeeds thanks to a successful collaboration between my office, the Ohio Environmental Protection Agency, the U.S. EPA and the U.S. Attorney’s Office,” Ohio Attorney General Yost said. “Laws outlining the proper removal of asbestos are in place to protect human health and environment. People who choose to ignore these laws will face criminal consequences.”

 

U.S. Attorney Glassman commended the investigation of this case by the U.S. EPA, Ohio EPA, and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case.

# # #

COLUMBUS, Ohio – Ronald E. Martin, Sr., 65, of Medway, Ohio, pleaded guilty in U.S. District Court to crimes related to stealing from the estate of a deceased friend, to the detriment of the intended beneficiary.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.

 

According to court documents, Martin and Robert L. Mollwitz were close friends for decades during the lifetime of Mollwitz. In September 2010, Mollwitz signed his will and living trust, naming Martin as executor of the will and trustee of the trust. Neither of the documents assigned any money to Martin for his personal use. Rather, money was assigned to be maintained for the support of a different individual.

 

Mollwitz died in June 2012, and, at that time, his estate was valued at more than $1.7 million. In November 2013, Martin opened a bank account in the name of Robert L. Mollwitz Trust, Ronald E. Martin TTEE.

 

From approximately February 2014 through May 2017, Martin requested more than $1 million be transferred from the estate to a bank account in his name. During that time, Martin issued approximately 146 checks from the new account, primarily made payable to himself or his inactive business, Total Mobile Home Services. He wrote checks to the business to hide his wrongdoing.

 

He spent a majority of the funds on personal expenses, including multiple trips to Hollywood Casino in Dayton, Ohio. Martin went to the casino multiple days per week to play slot machines, betting $9 per turn.

 

Martin also conducted approximately 80 check bill pay or ACH debit transactions at credit card vendors, to pay his personal loans, and to provide money to family members. These transactions totaled more than $200,000.

 

Bank personnel became concerned with Martin’s financial activity in the trust account and funds were subsequently frozen.

 

When questioned, Martin lied to bank personnel about how he was using the money. He also made several attempts to release the funds, including telling bank personnel that the victim – the intended recipient of the funds – had provided him with a signed and notarized letter stating she wanted the funds released to Martin. He never provided any letter to the bank.

 

The victim had never consented to Martin using the funds for his own use, and during the time of the scheme, the victim relied on Social Security Disability benefits as her sole source of income.

 

Martin pleaded guilty to one count of wire fraud and one count of money laundering. Each are punishable by up to 20 years in prison. As part of his plea, Martin has agreed to pay more than $890,000 in restitution. This represents the amount of funds he successfully used for his personal benefit.

 

U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation and Assistant United States Attorney Peter Glenn-Applegate, who is representing the United States in this case.

 

# # #

COLUMBUS, Ohio – Eric A. Zevely, 34, of Columbus, pleaded guilty in U.S. District Court to producing child pornography.

 

Zevely was one of six Central Ohio men charged recently who made online contact with each other and others who shared, or whom they believed to share, their sexual interest in minors, incest and child pornography.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Westerville Police Chief Joseph Morbitzer, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Franklin County Sheriff Dallas Baldwin, Ohio Attorney General Mike DeWine and other members of the Franklin County Internet Crimes Against Children (ICAC) task force announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.

Zevely was indicted by a federal grand jury in August 2018.

 

According to court documents, Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist.

 

Zevely made contact with undercover officers from two separate task forces in response to online advertisements looking for like-minded individuals interested in “incest taboo young” sexual conduct.

 

A search of Zevely’s phone revealed explicit photographs of his sexual abuse of a 10-year-old female.

 

Producing child pornography is a federal crime punishable by a range of 15 to 30 years in prison.

 

U.S. Attorney Glassman commended the investigation of this case by the federal and local crimes against children task forces, as well as Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the case.

 

# # #

COLUMBUS, Ohio – A jury convicted a Hilliard couple of conspiracy to commit health care fraud and health care fraud yesterday evening following a two-week trial before U.S. District Judge Algenon L. Marbley.

 

Benjamin C. Glassman, 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, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the verdict.

 

Darrell L. Bryant, 44, and Gifty Kusi, 35, owned and managed Health and Wellness Pharmacy on Blazer Parkway in Dublin. Bryant, Kusi, and Dr. Jornell Rivera also owned and operated Health and Wellness Medical Center, a suboxone clinic, also located in Dublin. Rivera served as the Medical Director for the medical center.

 

According to court documents and testimony, Bryant, Kusi and their co-conspirators marketed prescription creams in low-income neighborhoods and mailed those creams to Medicaid customers. They also billed for counseling services that weren’t provided, and billed for individual counseling sessions that actually occurred in a group setting.  

                  

As part of the conspiracy, Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams.

 

The pharmacy marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit. Patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource. 

 

Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know the prescribing physician.

 

Also as part of the health care fraud scheme, Health and Wellness Medical Center submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.

 

Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.

 

Co-conspirator Rivera pleaded guilty in May 2018 to making false statements related to health care matters. His sentencing hearing has been scheduled for 9am on January 11.

 

Another co-conspirator, Dr. Bernard Oppong, 60, of Blacklick, Ohio, was charged in a seven-count indictment on October 30, 2018.

 

U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.

 

# # #

COLUMBUS, Ohio – A former Franklin Township police officer has pleaded guilty to using excessive force as a law enforcement officer.

 

Robert Wells, 49, of Pataskala, Ohio, pleaded guilty to one count of deprivation of rights under color of law.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Prosecutor Ron O’Brien announced the plea offered today before U.S. Magistrate Judge Norah McCann King.

 

Wells was charged by indictment in September 2018. According to the charging document, on May 1, 2018, while acting in his then official capacity as a Franklin County Township police officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.

 

Additionally, Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.

 

# # #

Izmir Koch, 33, of Huber Heights, Ohio, was convicted in U.S. District Court today for assaulting a man because he believed the man was Jewish in violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and of lying to the FBI about his role in the religiously motivated assault. 

Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Herb Stapleton, Acting Special Agent in Charge, FBI Cincinnati Division, announced the verdict, which was reached today by U.S. District Judge Susan J. Dlott after a bench trial that occurred between Nov. 13 to 15.

According to court documents and testimony, the assault occurred on Feb. 4, 2017, outside a Cincinnati restaurant, when Koch yelled out asking if anyone outside the restaurant was Jewish. The victim responded that he was Jewish and Koch then ran to the victim and punched him in the head. When the victim fell to the ground, Koch and others continued hitting and kicking him, breaking a bone in his face and bruising his ribs. A half-dozen of Koch’s friends joined in the assault. Before and during the assault, the defendant was heard shouting, “I want to kill all of the Jews” and “I want to stab the Jews.”  The victim was not in fact Jewish.

After the incident occurred, Koch made a voluntary statement to the FBI, accompanied by his attorney. Koch falsely told the FBI he was not involved in the fight and he had not said anything disparaging about Jews.

 “All people should be able to live their lives freely and without fear of violence or aggressive acts of intimidation,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to prosecuting anyone who harms someone because of their actual or perceived religion and lies to law enforcement to cover up the crime.”

“This is the first conviction under the federal Hate Crimes Prevention Act in the Southern District of Ohio,” said U.S. Attorney Glassman. “We will not permit hate-fueled violence to gain a toehold here. Nor will we countenance lying to FBI agents. Today’s convictions reflect our resolve.”

In October, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals.  More information on the website and an update on Justice Department hate crimes prosecutions can be found here.

This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Megan Gaffney and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.

CINCINNATI – Izmir Koch, 33, of Huber Heights, Ohio, was convicted in U.S. District Court today for assaulting a man because he believed the man was Jewish in violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and of lying to the FBI about his role in the religiously motivated assault. 

 

Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, FBI Cincinnati Division, announced the verdict, which was reached today by U.S. District Judge Susan J. Dlott after a bench trial that occurred between Nov. 13 to 15.

 

According to court documents and testimony, the assault occurred on Feb. 4, 2017, outside a Cincinnati restaurant, when Koch yelled out asking if anyone outside the restaurant was Jewish. The victim responded that he was Jewish and Koch then ran to the victim and punched him in the head. When the victim fell to the ground, Koch and others continued hitting and kicking him, breaking a bone in his face and bruising his ribs. Approximately a half-dozen of Koch’s friends joined in the assault. Before and during the assault, the defendant and his associates were heard shouting, “I want to kill all of the Jews” and “I want to stab the Jews.” 

 

After the incident occurred, Koch made a voluntary statement to the FBI, accompanied by his attorney. Koch falsely told the FBI he was not involved in the fight, the fight only consisted of two punches, and he had not said anything disparaging about Jews.

 

“This is the first conviction under the federal Hate Crimes Prevention Act in the Southern District of Ohio,” said U.S. Attorney Glassman. “We will not permit hate-fueled violence to gain a toehold here. Nor will we countenance lying to FBI agents. Today’s convictions reflect our resolve.”

 

In October, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups and other related organizations and individuals.  More information on the website and an update on Justice Department hate crimes prosecutions can be found here.

 

This case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Megan Gaffney and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.

 

# # #

DAYTON – Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, honored the work of eleven district employees by presenting them with the U.S. Attorney’s Awards for Outstanding Performance. Those honored are:

Outstanding Performance in Legal Support – Katie L. Shaw

Ms. Shaw has taken a leading role in providing excellent paralegal support for the office’s Civil Division in Columbus, including managing discovery and expert witnesses for a heavy case load of medical malpractice cases and other defensive matters. She also provided crucial support in an employment discrimination case defended by the U.S. Attorney’s Office for the Eastern District of Tennessee.

“Electronic discovery is overwhelmingly important to the effective conduct of litigation today,” Glassman said in presenting the award. “The office and the court system benefit immensely from Katie’s eDiscovery expertise and hard work in supporting the Civil Division’s daily efforts to protect the American fisc.”

Outstanding Performance by an Assistant United States Attorney – Emily N. Glatfelter

In 2018 Ms. Glatfelter was part of the team that indicted an alleged Chinese spy for economic espionage, and extradited him to the United States – a first for the Department of Justice. She was also part of the team that tried two individuals and a company for wire fraud. The trial lasted one month, received a lot of public attention, and resulted in the conviction of all defendants on all counts. She also serves as Deputy Criminal Chief of the Cincinnati office and in that capacity, she provides the kind of valuable support for cases tried by other attorneys. As one example, her input helped guide two trial attorneys she supervised to develop a wire fraud case into a nationwide racketeering indictment -- which people throughout the Department have called an innovative and effective use of the Racketeer Influenced and Corrupt Organizations (RICO) Act. She has also been a leader in developing and refining standard district-wide plea agreement documents, assuring consistency and accountability throughout the district.

“Emily is a force of nature,” Glassman said. “She is a relentless advocate for justice as a trial attorney, supervisor and innovative leader.”

Outstanding Performance by a Litigative Team – First Assistant U.S. Attorney Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace II, Legal Administrative Specialist Leah A. Gezinski, Paralegal Specialist Catherine M. Robillard, Victim-Witness Specialist Acquanette M. Lindsay and Trial Attorney Justin Sher

This team litigated the first international terrorism case to go to trial in the Southern District of Ohio. It was an unprecedented undertaking with challenges involving discovery, translation, and secure handling of classified information that no trial team in the Southern District of Ohio had faced before.

“Working together as a team, they masterfully met those challenges and successfully brought the defendant to justice,” Glassman said, noting that Sher from the Justice Department’s National Security Division worked closely with other team members from the District who prepared discovery, managed the courtroom presentation, handled sensitive witness issues and tried the case.

Outstanding Performance in Administration – Jennifer T. Thornton

“Our cases affect the Southern District of Ohio, the nation, and the world,” Glassman said. “Jennifer has been principally responsible for making sure that work of the office is seen in the light of day, so the public understands what we’re doing to further the ends of justice and keep our communities safe.”

Ms. Thornton ensures that media have appropriate access to court documents and office leadership, proclaiming the work done on behalf of victims as well as protecting the rights of the accused. She has developed a strong social media presence and works with public information professionals in other agencies and Justice Department components to set and follow department-wide public information standards. Also serving as the District’s Outreach Coordinator, she manages a robust outreach program which included hosting the state’s third annual reentry summit in 2018 in partnership with the U.S. Attorney’s Office for the Northern District of Ohio.

Outstanding Performance by a Contractor – Noel A. Thesing

Ms. Thesing has been responsible for supporting the Cincinnati Civil Division’s affirmative cases, including investigations and litigation involving the False Claims Act, fair housing, Americans with Disabilities Act, and opioids. Her skill and enthusiasm have been significant assets as the office has expanded its affirmative civil practice. In affirmative civil rights cases, Ms. Thesing has handled not only traditional legal work, but has also interviewed witnesses, reviewed documents, and collected evidence.

“In 2018, our office brought its first Fair Housing Act case in decades against a landlord who sexually harassed female tenants,” Glassman said. “Noel’s work was crucial to bringing that case forward and now litigating it.”

Extraordinary Individual Contribution – Christy L. Muncy

The weekend before a trial was set to begin on a case involving the sex trafficking of a minor, one of the trial lawyers had to step away due to a family emergency. On receiving the call, Assistant U.S. Attorney Muncy literally went straight into the office that same weekend, dove into the case, and, together with the other trial lawyer already on the case, tried it the next week, ultimately resulting in convictions on all counts and prompting the district judge to praise both lawyers’ performance.

“That kind of devotion to the team and the cause, on the shortest possible notice and under difficult circumstances, is truly a remarkable individual contribution to the cause for justice and warrants this special recognition,” Glassman said.

The U.S. Attorney’s Office serves the approximately 5.5 million residents of 48 counties in Ohio and maintains offices in Columbus, Cincinnati and Dayton. This was Glassman’s third annual presentation of awards for outstanding performance. The event was held in Dayton.

# # #

 

COLUMBUS, Ohio – John E. Kelly, 63, of Columbus, Ohio, was sentenced in U.S. District Court to 60 months in prison for mail fraud and tax evasion as part of a scheme to defraud his employers of approximately half a million dollars. He was also ordered to pay full restitution to the victim companies and the IRS. He pleaded guilty in May 2018 to one count each of mail fraud and tax evasion.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Todd Wickerham, Federal Bureau of Investigation (FBI), Cincinnati Division and Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, announced the sentence handed down today by Senior U.S. District Judge James L. Graham.

According to court documents, in 2014 and 2015, Kelly was employed at two different trucking logistics companies – CEVA Logistics and Container Port Group, Inc.

 

During that time, Kelly defrauded the two companies by causing them to pay for bogus advertising expenditures from a pair of sham companies that Kelly set up for his own gain.

 

Kelly billed the trucking companies more than half a million dollars for advertising services that were never actually provided. Instead, he took the payments and used them to pay personal expenses. He caused an actual loss of $461,000 from CEVA and CPG.

 

For example, Kelly served as CEVA’s director of recruiting and was able to set up new advertising vendors for payment. He instructed a direct-report employee to add a nominee company (that he controlled) to CEVA’s approved-vendor list. Kelly then began submitting bogus advertising invoices to CEVA from his company. From approximately March 2014 through March 2015, Kelly caused the submission of at least 65 invoices to CEVA totaling $485,670. CEVA paid out $438,030 of the invoices via checks, which were mailed to a Post Office Box that Kelley controlled in Lewis Center, Ohio.

 

Kelly was terminated from CEVA in April 2015 and then hired by CPG. He renamed his vendor company and began the scheme again, billing CPG for fake advertising services in the amount of $29,461. Nearly $23,000 was actually paid.

 

The defendant created email accounts and used fake identities as well as phony corporate registrations and Taxpayer/Employer Identification Numbers when corresponding with CEVA and CPG to conceal his involvement with the nominee companies.

“Kelly went to great lengths to perpetrate his years-long fraud, U.S. Attorney Glassman said. “He formed and used multiple shell companies and created fictitious ‘employees’ of those companies to interact with real employees at his legitimate employers. Although his means were sophisticated, at bottom Kelly was a thief. He stole from the companies that employed him and from the IRS. For that, he deserves the five years in prison that the district court imposed today.”

 

Kelly also failed to file an individual or business tax return for 2014 and 2015. As a result, he had a tax due and owing (representing both his wages and embezzlement income) of at least $70,500 for each year.

 

U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation, the FBI and USPIS, as well as Assistant United States Attorney Noah R. Litton, who is prosecuting the case.

 

# # #

DAYTON –Matthew Jones, 44, of Kettering, Ohio, pleaded guilty in U.S. District Court to two counts of producing child pornography.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Mike DeWine, Greene County Prosecutor Stephen K. Haller, Montgomery County Prosecutor Mathias H. Heck, Jr., Kettering Police Chief Christopher N. Protsman, Xenia Police Chief Donald R. Person and members of the FBI’s Child Exploitation Task Force announced the plea entered into yesterday afternoon before U.S. District Judge Walter H. Rice.

 

According to court documents, in 2003 and in 2009, Jones sexually abused two, three-year-old girls and created hundreds of images of the abuse.

 

Jones also used computer file sharing programs to receive, possess and view images and videos of the sexual abuse of toddlers and young children.

 

Jones was indicted by a federal grand jury in January 2018.

 

Jones’ plea in federal court was the first part of a global resolution of charges involving the federal court, the Greene County Common Pleas Court and the Montgomery County Common Pleas Court.  The global plea means Jones also accepts responsibility for one count of rape of a person under age 13 in Greene County and the same charge in Montgomery County, as well as two counts of sexual battery and one count of gross sexual imposition in Montgomery County.

 

As part of this global resolution, the Greene County Prosecutor’s Office will recommend Jones receive 15 years up to life in prison for the Greene County offense. The Montgomery County Prosecutor’s Office will recommend Jones receive 20 years up to life in prison for the Montgomery County offenses. Also as part of the resolution, Jones will serve his sentences concurrently with each other.

 

Each federal count of producing child pornography is punishable by 15 to 30 years in prison.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Bureau of Criminal Investigation (BCI) and Kettering and Xenia police departments, as well as Assistant United States Attorneys Amy M. Smith and Dominick S. Gerace, who are prosecuting the case.

 

# # #

CINCINNATI – A jury has convicted Evans Landscaping, Inc. and company executives on all counts charged in a fraud case.

 

The company; the owner of Evans Landscaping, Inc., Doug Evans; and the vice president of operations for Evans Landscaping, Jim Bailey, were convicted of defrauding the City of Cincinnati and other public entities through fraudulent small business contracts.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ohio Attorney General Mike DeWine announced the verdict reached today following a trial that began on November 9.

 

Evans Landscaping is an Ohio company headquartered in Cincinnati that performs demolition, site-work, grading, hauling, recycling and landscaping services. Given the size and ownership of the company, Evans Landscaping does not qualify as a small business enterprise (SBE).

 

In order to qualify for the City of Cincinnati’s SBE program, a company must be independently controlled, operated and managed by a qualifying individual whose net worth does not exceed certain limits. The program also requires that the company be directly responsible for providing the supplies or services to the City without relying upon others who are not owners or employees of the company.

 

Similarly, the State of Ohio has established an Encouraging Diversity, Growth, and Equity program (EDGE) for economically disadvantaged businesses that are at least 51% owned and controlled by an economically disadvantaged person. The size of the business must not exceed the definition of a “small business.”

 

In 2008, the defendants (along with others) established, controlled and operated a demolition company, Ergon Site Construction, LLC, for the benefit of Evans Landscaping. Ergon’s president and owner, Korey Jordan, had no prior experience in the field but provided IT services for Evans Landscaping. Ergon (with the help of the coconspirators) fraudulently obtained certifications as an SBE and EDGE contractor while concealing Evans Landscaping’s involvement in and control over Ergon.

 

Evans and Evans Landscaping provided startup funds to Ergon. Jordan did not make any capital contributions to the establishment of the company.

 

Evans Landscaping personnel prepared and filed the legal documentation to register Ergon as an LLC, created the company’s name and logo, ordered Ergon apparel, and bought equipment labels with Ergon’s logo. 

 

Jordan performed little work for Ergon and had little, if any, actual control over Ergon’s management, finances and operations. He was not permitted to make certain decisions or take certain actions without Doug Evans’ approval.

 

Evans paid Jordan a monthly salary through the Ergon payroll and Evans Landscaping employees handled virtually all of the accounting and office management functions of Ergon. For example:

 

• Ergon’s bookkeeping was kept by Evans Landscaping employees;
• Evans Landscaping personnel had Jordan sign blank Ergon checks for the employees to use;
• Evans Landscaping was a guarantor for Ergon’s line of credit and arranged for the purchase of two Mack Trucks in Ergon’s name;
• At various times, Ergon’s business office and address was located on property owned by Evans or one of his companies;
• Evans, Bailey and others controlled hiring and firing by Ergon, and at one point, Evans terminated the Ergon health care plan;
• Evans Landscaping housed, maintained and dispatched the vehicles and equipment in Ergon’s name, which was used by both companies; and
• Evans Landscaping officers and employees directed virtually all field and construction operations of Ergon, including on-site supervision and the managing of Ergon field workers.

From 2011 through 2014, Ergon bid on and received more than 100 residential demolition contracts with the City of Cincinnati, totaling approximately $1.9 million, by leveraging Ergon’s fraudulent SBE status.

 

In a similar fashion, during the same timeframe, Evans Landscaping bid on State demolition and construction projects – particularly public school, university and municipal projects – by claiming Ergon would provide a percentage of the services and receive part of the funds to be paid.

 

On at least one occasion, Evans Landscaping listed a different subcontractor, won the contract, and performed the work without using, paying or even notifying the EDGE subcontractor named.

 

Specifically, the company and both men were convicted of two counts of conspiracy to commit wire fraud and three counts of wire fraud.  The two men were also convicted of one count of misprision of a felony.

Korey Jordan (president of Ergon), Maurice Patterson (former CFO of Evans Landscaping), John Dietrich (former CFO of Evans Landscaping) and Michael Moeller (former manager at Evans Landscaping) have pleaded guilty in relation to this case.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter, who prosecuted the case.

 

# # #

COLUMBUS, Ohio – Tawnya Writesel, also known as Tawnya Rutan, 40, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison and was ordered to pay more than $108,000 in restitution to the Internal Revenue Service (IRS) for conspiring to submit false claims for income tax refunds with the IRS.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentence handed down by Senior U.S. District Judge James L. Graham.

 

According to court documents, between April 2012 and September 2015, Writesel conspired to defraud the IRS by filing approximately 100 false income tax returns in an attempt to obtain fraudulent income tax refunds totaling approximately $548,382.00. As a result of the false income tax return filings, a total of $226,677.50 in fraudulent income tax refunds was released by the IRS to Writesel and/or other co-conspirators.

 

Writesel used the identification of real people, including names, social security numbers and dates of birth, and used the identifying information as either the taxpayers or the dependents on the false income tax returns. The majority of these false tax returns contained fictitious information including false Schedule C income and expenses, and fraudulently claimed education and Earned Income Credits.

 

Co-defendants Michael (also known as Mickey) A. Prisley, Amy K. France and Denard T. Nelson were also charged in relation to this case.

 

Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County from approximately August 2011 through January 2014. Prisley pleaded guilty in April 2018 to one count of conspiracy to submit false claims and is awaiting sentencing. Prisley was sentenced in September 2018 to twelve months and one day in prison and was ordered to pay $250,220 in restitution.

 

France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution.

 

Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.

 

“This is the last defendant to be sentenced in this conspiracy, one in which they all chose to line their pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

 

U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who prosecuted the case.

 

# # #

COLUMBUS, Ohio – A federal grand jury has charged two Columbus individuals with crimes related to an armed robbery in September in Whitehall.

 

Robert K. Mason, 42, and Bretta L. Nallen, 43, both of Columbus, were charged in the indictment returned here yesterday.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Whitehall Police Chief Mike Crispen and Columbus Police Chief Kim Jacobs announced the charges.

 

According to the indictment, on September 26, 2018, Mason stole more than $12,000 from the Huntington National Bank on East Broad Street in Whitehall during an armed robbery.

 

An affidavit in this case details that, upon entering the bank, Mason brandished a handgun and ordered customers to the floor. He allegedly vaulted the counter and demanded money from bank tellers, striking two of the tellers with the gun.

 

One bank employee was struck in the back of the head and one was struck in the face.

 

From September 26 until November 2, 2018, Nallen allegedly served as an accessory to the crime by misleading authorities in order to evade Mason’s apprehension.

 

Both defendants also allegedly conspired to tamper with evidence by attempting to hide the firearm used during the robbery.

 

Specifically, Mason is charged with one count of bank robbery (up to 25 years), one count of conspiracy to tamper with evidence (up to 20 years), and one count of using a firearm during a crime of violence, (seven years up to life in prison).

 

Nallen is also charged with one count of conspiracy to tamper with evidence, as well as one count of being an accessory after the fact, a crime punishable by up to 15 years in prison.

 

The defendants are scheduled to appear in federal court today at 2:30pm before U.S. Magistrate Judge Chelsey M. Vascura.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI and Whitehall and Columbus divisions of police, as well as Assistant United States Attorneys David M. DeVillers and S. Courter Shimeall, who are prosecuting the case.

 

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

# # #

CINCINNATI – An American priest from Cincinnati has been charged by a federal criminal complaint for allegedly sexually abusing minor boys.

 

Kenneth B. Hendricks, 77, of Cincinnati, was arrested Tuesday evening in the Philippines, where he currently serves as a missionary priest.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), announced the charges.

 

The government unsealed the criminal complaint today. According to that document and its supporting affidavit, on November 13, HSI received information regarding alleged sexual exploitation of multiple minor Filipino boys.

 

Information indicated that a Catholic priest – later identified as Father Hendricks – had been sexually assaulting the boys. Subsequently, several victims have been identified and provided statements to law enforcement.

 

For example, one victim said he had been sexually abused by the local parish priest since 2009, when the boy was approximately 12 years old. Another victim stated he was sexually abused by Hendricks beginning when the victim was seven years old.

 

One victim said he and Hendricks engaged in anal sex at least a dozen times and oral sex more than 30 times. Further, Hendricks allegedly inserted a hose and his fingers into the boy’s anus.

 

Another victim said he masturbated Hendricks’s penis approximately 40 times and that Hendricks did the same to the boy at least 60 times.

 

Victims said Hendricks began by kissing them and the contact escalated to touching their penises, oral and anal sex.

 

Hendricks allegedly had a number of minor boys residing with him. It is alleged he insisted they take baths together, and would molest the victims alone or with other boys. The priest allegedly warned the victims that if they told anyone they would all go to prison.

 

In a recorded conversation with one of the victims, Hendrick stated: “This will probably be the scenario is, there will be a meeting and then it will be decided, you know, what your parents want to do about anything. Do they want to try…want to press charges, uh, whatever see, but that’s between them and the Bishop, I have nothing to do with that. I just get the fallout afterwards.”

 

In the same conversation, Hendricks said: “they will decide, ask you what your decision is, what you’re going to do, whether there will be a case or not or whether, you know, a settlement, I don’t know. But as far as after that, I don’t know what’s going to happen. I really will have to probably really resign, retire now.”

 

Hendricks is charged as a United States citizen with engaging in illicit sexual conduct in foreign places, which is a federal crime punishable by up to 30 years in prison.

 

U.S. Attorney Glassman commended the investigation of this case by HSI and the Assistance of the Philippines National Police, as well as Assistant United States Attorneys Christy L. Muncy and Timothy D. Oakley, who are prosecuting the case.

 

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

 

If you have information related to this alleged conduct, or believe you are also a victim, please contact HSI at 513-246-1461.

# # #

Laith Waleed Alebbini, 28, of Dayton, Ohio, was convicted today for attempting and conspiring to join the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Todd Wickerham of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the guilty verdict.

U.S. District Judge Walter H. Rice returned a guilty verdict today following a bench trial that started on Nov. 13, convicting Alebbini of one count of attempting to provide material support and resources to ISIS, and one count of conspiring to do the same.  Alebbini attempted and conspired to provide material support and resources to ISIS in the form of personnel, namely himself.

Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint.  Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court.  The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding passes in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey.  The evidence also showed that Alebbini intended to step off the plane once in Istanbul, forego the flight to Amman, and instead make his way from Turkey into Syria in order to join ISIS there.

According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “I did not say the Islamic State does not cut off heads.  The Islamic State is the beheader and throat cutter…I agree with you on that…, but they still treat captives well.  The captive, before he is beheaded, is treated well, but when it’s time to behead him, he will be beheaded….But the Islamic State is fighting a survival war.  They ask people to migrate to the State.  When migrants get there…they will assign them accordingly to a…district where they will recruit them as inghimasi.  I, cousin, want to go to be an inghimasi soldier.”  As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.  Alebbini told a relative days later:  “I am now ready to migrate.”

In a message exchange on April 26, 2017, about an hour before Alebbini arrived at the Cincinnati-Northern Kentucky airport, another relative pleaded with Alebbini not to travel.  Alebbini responded in three separate back-to-back messages:  “Do you think I am a criminal”  “I am a terrorist”  “I am mujahid”.

Attempting to provide material support to a foreign terrorist organization, and conspiracy to do so, are each federal crimes punishable by up to 20 years in prison.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.  Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.  The Court scheduled sentencing for March 8, 2019.  After serving his sentence, Alebbini will face deportation.

Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the JTTF, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.

First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio, and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.

DAYTON – A federal judge has convicted a Jordanian national residing in Dayton of attempting and conspiring to join ISIS, a designated foreign terrorist organization.

 

U.S. District Judge Walter H. Rice returned a guilty verdict today following a bench trial that started November 13, convicting Laith Waleed Alebbini, 28, of Dayton, Ohio, of one count of attempting to provide material support and resources to ISIS, and one count of conspiring to do the same. Alebbini attempted and conspired to provide material support and resources to ISIS in the form of personnel, namely himself.

 

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Todd Wickerham of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the guilty verdict.

 

Alebbini was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint. Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding passes in hand for a flight to Amman, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to step off the plane once in Istanbul, forego the flight to Amman, and instead make his way from Turkey into Syria in order to join ISIS there.

 

According to court documents and testimony, the investigation began in January 2017, when Alebbini trespassed onto the Turkish Embassy in Washington, D.C., in an effort to speak to the Turkish Ambassador about the Syrian conflict. Security personnel apprehended and escorted Alebbini off the embassy, but no charges were brought. Two days later, Alebbini left the United States for Turkey, in a proclaimed effort to join up with forces fighting in Syria. Turkish authorities denied Alebbini entrance because he was traveling on an expired passport, and Alebbini returned to the United States. At this time, he lived in Gordonsville, Va.

 

Alebbini moved to Dayton, Ohio on March 1, 2017. Two weeks later, Alebbini entered a Dayton-area mosque, grabbed anti-ISIS brochures from a table, threw them in the trash and challenged mosque leaders for distributing anti-ISIS brochures.

 

Alebbini told relatives and others that he regularly watched ISIS-related videos on YouTube, and that Facebook had disabled his account due to his posting of ISIS material.

 

On April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “I did not say the Islamic State does not cut off heads. The Islamic State is the beheader and throat cutter…I agree with you on that…, but they still treat captives well. The captive, before he is beheaded, is treated well, but when it’s time to behead him, he will be beheaded….But the Islamic State is fighting a survival war. They ask people to migrate to the State. When migrants get there…they will assign them accordingly to a…district where they will recruit them as inghimasi. I, cousin, want to go to be an inghimasi soldier.” As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation. Alebbini told a relative days later:  “I am now ready to migrate.”

 

Alebbini also told his friend during the six-hour call that he had heard and was following the “calling” of ISIS’ self-proclaimed leader, Abu Bakr al-Baghdadi. Alebbini also stated to his friend:  “I will not enter the United States of America except, God willing, as a conqueror.” When Alebbini’s friend asked how Alebbini would know “who the group you’re firing at belongs to or is affiliated with,” Alebbini responded: “This group…belongs to the Crusaders, belongs to America.”  Alebbini expressed to others similar sentiments about America and Americans.

 

After learning of Alebbini’s arrest, Alebbini’s friend visited his nearest FBI field office to report his conversation with Alebbini and Alebbini’s intentions.

 

In a WhatsApp conversation on April 26, 2017, about an hour before Alebbini arrived at the Cincinnati-Northern Kentucky airport, another relative pleaded with Alebbini not to travel.  Alebbini responded in three separate back-to-back messages:  “Do you think I am a criminal”  “I am a terrorist”  “I am mujahid”.

 

After his arrest at the CVG airport, Alebbini told agents that ISIS is an “unbreakable” “justice state, a state of justice,” and that he and his “brethren” in the Islamic State wanted an “Islamic State of Arabia, you know, just like the United States of America…What if the founding fathers were Muslims? What about that?”

 

Further, Alebbini told agents the “time is already here” for “picking up the gun” and “fighting with” ISIS, stating that “his people” are being attacked by a “Crusader Coalition” of “66 nations.” Alebbini told agents and others that he would rather spend years in jail than remain in America.

 

Attempting to provide material support to a foreign terrorist organization, and conspiracy to do so, are each federal crimes punishable by up to 20 years in prison. Alebbini arrived in the United States in 2011 and has been a “green card” holder (lawful permanent resident) ever since. After serving his sentence, Alebbini will face deportation.

 

“Today the district court found Laith Alebbini guilty of attempting to join ISIS,” U.S. Attorney Glassman said, “The verdict followed a trial in open court, where the defendant had the assistance of able lawyers, and the United States proved the charges with evidence beyond a reasonable doubt. This is the American criminal justice system as envisioned by the Founding Fathers – and it is the exact opposite of the murderous regime Alebbini sought to support.”

 

“Terrorism continues to be a significant threat to our country,” stated Special Agent in Charge Wickerham. “The FBI and our partners on the Joint Terrorism Task Force are committed to preventing individuals from supporting terrorism.”

 

The JTTF includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.

 

Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace, and Trial Attorney Justin Sher of the Counterterrorism Section of the National Security Division of the U.S. Department of Justice, all of whom prosecuted the case through trial.

 

# # #

COLUMBUS, Ohio – The owner of Ready Made RC, a Lewis Center-based company that sells radio-controlled model aircraft and drones as well as parts and supplies for them, pleaded guilty in U.S. District Court to intentionally understating the value of lithium polymer (LiPo) batteries he imported from China in order to avoid paying the proper import duty/tax on them, and violating safety regulations by improperly labeling, mailing and shipping the batteries.

Timothy Stanfield, 47, of Lewis Center, pleaded guilty to one count of entry of goods by means of false statements, a crime punishable by up to two years imprisonment and a fine of up to $250,000. Stanfield also pleaded guilty to one count each of mailing injurious materials, transportation of hazardous materials, and money laundering.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the pleas entered before U.S. Magistrate Judge Norah McCann King on Wednesday, November 27.

Court documents say Stanfield placed a total of 13 orders from a Chinese company, Kypom Technology Stock Co, LTD, between October 2012 and January 2015 valued at $778,395.60. Customs and Border Protection agents inspected one of the shipments in January 2015 consisting of 186 boxes containing 4,007 individual batteries. The declared value was $19,827, which is significantly less than the actual invoiced value of the batteries.

Investigators made an undercover purchase of batteries from the company’s website in February 2015. Four batteries, including to LiPo batteries were mailed. Investigators found that the shipment was not properly packaged and contained more batteries than permitted by law. Safety regulations control the shipment of LiPo batteries because of their chemical contents.  Investigators also found that the batteries were not properly packaged or labeled for shipment in air cargo.

"Companies who illegally import batteries and other merchandise with the intent to evade U.S. Customs laws will be held accountable,” Said Steve Francis, special agent in charge for HSI Detroit, which covers Michigan and Ohio. "Simply put, when these U.S. laws are not adhered to, lives are put at risk. HSI and our partners will continue to aggressively target and investigate those who jeopardize consumer safety.”

“The details of this case are egregious. Timothy Stanfield placed a higher value on his profit than the safety of the employees of the air cargo companies,” stated Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. IRS Criminal Investigation is committed to following the money, wherever it leads.”

Stanfield agreed to pay restitution of $22,614.74 to U.S. Customs and Border Protection. A sentencing date will be scheduled following a pre-sentence investigation by the court.

U.S. Attorney Glassman commended the investigation of this case by the HSI and IRS Criminal Investigation, as well as the U.S. Department of Transportation Office of Inspector General and the U.S. Postal Inspection Service. He also commended Assistant United States Attorneys Michael Marous and Jessica Knight, who are representing the United States in the case.

# # #

WASHINGTON - A Columbus, Ohio, attorney pleaded guilty today to corruptly endeavoring to impede and obstruct the due administration of the Internal Revenue Service, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio.

According to documents and information provided to the court, Marcus “Marc” Dunn has been a licensed attorney in Ohio since the late 1990s. Starting in 2007, Dunn advised and assisted the late Dr. Kevin Lake in various legal matters, primarily related to Dr. Lake’s operation of Columbus Southern Medical Clinic in Columbus, Ohio. Dunn’s specialty during this time was tax law.

In 2009 and 2010, the IRS audited a number of corporate entities controlled by Dr. Lake. When the IRS Revenue Agent conducting the audits requested documents supporting certain tax positions taken by Dr. Lake regarding the clinic’s equipment, Dunn provided the Revenue Agent with “bills of sale” appearing to support the false depreciation deductions that Dr. Lake’s entities had claimed.  The IRS determined that these “bills of sale” were false, in that they inflated the value of the clinic’s equipment.  At the same time, Dunn supplied these documents to the IRS, he had provided contrary information regarding the true value of the clinic equipment to third parties.

In 2011, Dunn filed petitions in U.S. Tax Court in an effort to challenge the IRS’s determination that some of the audited entities owed additional taxes.  In 2014, the case was settled with an agreed amount of $608,583.20 due. On September 9, 2014, Dunn was contacted by an IRS Revenue Officer trying to collect the settlement amount from the Lake entities. Dunn knowingly provided false and purposely misleading information to the Revenue Officer about two of the three Lake entities by telling her that: (1) the entities at issue were closed; (2) he had no idea who the officers of the entities were; (3) the entities had no assets; (4) an IRS Form 433-B, Collection Information Statement for Businesses seeking information relating to property held, would be all “zeros”; and (5) he did not know where the entities banked. At least partially due to Dunn’s statements, the Revenue Officer closed the collection cases because she believed the entities were defunct with no assets.  

The parties agree that Dunn is responsible for a tax loss of $507,198.00.  The tax loss has since been paid to the IRS using funds seized from Dr. Lake, who pleaded guilty in January 2017 to drug, tax, and fraud charges.  Dr. Lake died before sentencing in that case.

Sentencing will be scheduled at a later date before U.S. District Court Judge Michael H. Watson. Dunn faces a maximum sentence of three years in prison, a period of supervised release, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Glassman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Richard M. Rolwing and Carl F. Brooker of the Tax Division, who are prosecuting the case.

COLUMBUS, Ohio – All three defendants in a child pornography case have pleaded guilty in U.S. District Court.

David E. Fairchild, 45, of Kirkersville, Ohio pleaded guilty today. Jesse G. Szuba, 31, of Newark, Ohio, pleaded guilty pleaded guilty in late August. Mike Allen, 36, of Heath, Ohio pleaded guilty on October 30.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the pleas entered into before U.S. District Judge Michael H Watson.

The three men were charged in May 2018 in a second superseding indictment that was unsealed in late October.

According to court documents, in January 2018, the Franklin County ICAC Task Force received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding a video depicting child sexual abuse. The video was uploaded to Google from the username “David TwistedBottomFreak Fairchild” and depicted an adult male anally penetrating a toddler-aged child.

Fairchild sexually abused a female victim, born in 2016, and created child pornography involving the victim.

Likewise, Szuba attempted to produce child pornography involving a boy born in 2014.

Szuba and Fairchild met on Craigslist and communicated with each other about sexually abusing the toddlers. During their communications, they exchanged child pornography files and discussed plans to engage in various sex acts with each other and the victims.

Further, Szuba suggested other sex acts that Fairchild perpetrate against the female victim and asked Fairchild to send Szuba pictures or videos of that abuse.

In response to watching a video of Fairchild sexually abusing the toddler girl, Szuba messaged Fairchild that he “liked” the video “espically [sic] when she started whimpering.” Between January 26 and January 31, 2018, Szuba repeatedly requested, and Fairchild repeatedly sent, images and videos depicting sexual abuse of the female toddler.

Fairchild sent child pornography files to Allen, as well.

Fairchild pleaded guilty to conspiring to produce child pornography, a federal crime punishable by a range of 15 to 30 years in prison and committing the offense while required to register as a sex offender, which carries a mandatory 10-year sentence consecutive to any other sentence. Szuba pleaded guilty to advertising for child pornography, which is also punishable by a range of 15 to 30 years in prison. Allen pleaded guilty to receiving child pornography, which carries a potential sentence of five to 20 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC Task Force, HSI, FBI and Ohio Attorney General’s Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, who are prosecuting the case.

# # #

DAYTON – Wright State University’s Board of Trustees has accepted responsibility for visa fraud offenses on behalf of the university and agreed to pay the federal government $1 million.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), and James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of the Inspector General, announced the agreement entered into today.

According to the agreement, between 2010 and 2013, Wright State entered into several sponsored research contracts with Webyoga, Inc., a privately held, Dayton-based software company. As part of the contracts, Wright State would employ software engineers, obtain H-1B visas for the employees, and pay their respective salary and benefits as employees of the university.

The H-1B visa program allows companies in the United States to temporarily employ foreign workers in occupations that require highly specialized knowledge and a bachelor’s or higher degree in a specific specialty. As an institute of higher learning, Wright State was “ cap exempt” from limits on the number of H-1B visas it could obtain, unlike other types of organizations.

Wright State University employed 24 foreign employees – who were selected and approved by Webyoga – through H-1B visas. The university used its “cap exempt” status to apply for the visas. In doing so, Wright State submitted a signed employment offer letter from the university indicating the visa employee would be working for the university and under the supervision of university employees.

Wright State did not disclose in the visa applications that it knew the employees would actually be working for Webyoga. In fact, the university further specified the visa employees would not be working offsite, but would be physically working on the school’s campus in Fairborn.

Rather than develop the software programs named in the contracts, the visa employees worked as consultants on behalf of Webyoga in various cities throughout the country, including Atlanta, Orlando and New York City.

Over the course of the contracts, Wright State invoiced Webyoga for more than $1.8 million for the fees associated with the employees’ visas, the employees’ salaries and benefits, and administrative costs for the university.

Between 2010 and 2015, Wright State also entered into similar arrangements with other companies wherein it would apply for H-1B visas for individuals, knowing the individuals were going to work on a routine basis for another company that would then reimburse the school.

“Visa fraud in higher education undermines the integrity of our immigration laws,” said U.S. Attorney Glassman. “Today’s agreement ensures that will not happen again at Wright State. It also serves as a warning to other institutions that participate in the H-1B visa program that fraud in the administration of the program leads to consequences.”

“The federal agreement ordering Wright State University to admit to H1-B visa fraud violations and pay a $1 million dollar fine is the largest sanction imposed by HSI in Ohio relating to a visa-fraud investigation,” said Steve Francis, special agent in charge for HSI in Michigan and Ohio. “This outcome should serve as a warning to entities who may be seeking to exploit the U.S. Visa process.”

“Wright State University’s agreement to pay $1 million to the Government is a result of a visa fraud investigation that found the university grossly misused the H1-B visa cap exemption. We will continue to work with our law enforcement partners to vigorously pursue those who defraud worker visa programs for their own personal gain,” stated James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

Wright State University acknowledges that the placement of H-1B visa employees with other companies and in locations other than Fairborn violated the terms of their visa applications. As a result, the companies who were subject to the numerical H-1B visa limitation were able to use H-1B employees through their contracts with Wright State.

Upon being notified by the U.S. Attorney’s Office of the federal investigation, the school’s Board of Trustees immediately addressed the H-1B visa employment issues by removing the faculty and employees responsible for the contracts.  This included restructuring key departments such as the General Counsel’s Office and the Department of Compliance in order to insure all existing and future H-1B employee applications comply with all federal laws and regulations.

Glassman added: “Several factors were important in the decision to resolve the matter with Wright State by agreement, rather than prosecution. These factors include Wright State’s immediate cooperation upon being notified by federal authorities of the investigation, the removal or demotion of the responsible employees, Wright State’s remedial measures, including the university’s commitment to audit and compliance, and consideration of the Wright State student body’s wellbeing as part of the public interest.”

The University will pay the federal government $1 million in three installments. The first of those installments is due within 60 days and the second is due within 12 months. The final installment must be paid within 12 months of the second payment.

# # #

South Korea-based companies SK Energy Co. Ltd., GS Caltex Corporation, and Hanjin Transportation Co. Ltd. have agreed to plead guilty to criminal charges and pay a total of approximately $82 million in criminal fines for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to United States Army, Navy, Marine Corps, and Air Force bases in South Korea, the Department of Justice announced today. 

“These charges are the first to be announced in this investigation into bid rigging and price fixing of fuel supply services to the Department of Defense in this critical region,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “Section 4A of the Clayton Act is a powerful yet historically underused enforcement tool that empowers the United States to obtain treble damages for anticompetitive conduct when the government is itself the victim.  The Antitrust Division has a long history of vigilantly protecting the interests of American consumers through civil and criminal antitrust enforcement.  Going forward, it is my goal to apply that same vigilance to protect the interests of American taxpayers.  When a firm cheats the United States by rigging bids, the Division will insist on robust civil settlements like those announced today.”  

“Those who subvert the open-bidding process to supply services to the United States by conspiring to fix prices will be found out and prosecuted,” said U.S. Attorney of the Southern District of Ohio Benjamin C. Glassman. “Such a conspiracy is no less illegal for being hatched in South Korea, and as this case shows, federal law enforcement authorities can bridge the distance.”

In separate civil resolutions, SK Energy, GS Caltex, and Hanjin have agreed to pay a total of approximately $154 million to the United States for civil antitrust and False Claims Act violations related to the bid-rigging conspiracy.  These settlements reflect the important role of both Section 4A of the Clayton Act and the False Claims Act to ensure that the United States is fully compensated when it is the victim of anticompetitive conduct. 

“We depend on companies like SK Energy, GS Caltex, and Hanjin to provide valuable services to our military,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division.  “We will continue to ensure that fuel suppliers who contract with the federal government do not engage in corrupt practices at the expense of our nation’s military and the American taxpayer.”

The Criminal Case:   

According to three felony charges filed today in the U.S. District Court for the Southern District of Ohio in Columbus, the Defense Logistics Agency and the Army and Air Force Exchange Service are two U.S. Defense Department agencies that contract with South Korean companies to supply fuel to the numerous U.S. military bases throughout South Korea.  Beginning at least in or around March 2005 and continuing into 2016, South Korean petroleum and refinery companies and their agents, including the defendants and their co-conspirators, participated in a combination and conspiracy to suppress and eliminate competition during the bidding process for these fuel supply contracts.  SK Energy, GS Caltex, and Hanjin have agreed to cooperate with the department’s ongoing criminal investigation.  The plea agreements are subject to court approval. 

“Protecting the integrity of the Department of Defense acquisition process and delivery of fair-priced resources to the U.S. military are among our highest priorities,” said Director Dermot F. O’Reilly of the Department of Defense, Defense Criminal Investigative Service (DCIS).  “These guilty pleas and significant fines demonstrate the heavy consequences that come to those who enrich themselves through collusion in order to defraud the American taxpayer.  This exhaustive investigation was a multi-year endeavor by DCIS, its investigative partners, and the Department of Justice.  DCIS will continue to identify, disrupt, and bring to justice those who threaten U.S. military readiness through fraud and corruption.”

“These guilty pleas clearly demonstrate our organization’s steadfast commitment to hold corporations, foreign and domestic, accountable for engaging in anticompetitive conduct,” said Brigadier General Duane R. Miller, deputy commander of the U.S. Army Criminal Investigation Command (Army CID). “The highly trained special agents from our Major Procurement Fraud Unit, along with our federal law enforcement partners, will continue to aggressively investigate organizations that participate in illegal conspiracies and do harm to the readiness of our Army.”

“The FBI remains committed to holding corporations—both foreign and domestic—accountable for anticompetitive conduct and fraudulent practices toward the United States,” said FBI Executive Assistant Director Amy Hess. “The conduct by the corporations in this case is particularly egregious, as they targeted the U.S. military in a critically strategic region, defrauded the U.S. government, and ultimately, cheated the American taxpayers of millions of dollars.”

“The FBI is committed to investigating companies and individuals around the world who engage in bid rigging and other forms of corruption to defraud the U.S. Government,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office. “True competition is an economic bedrock of our democratic society.  These criminal and civil charges demonstrate the ability of the FBI, our federal law enforcement partners, and the Department of Justice to bring to justice those who choose not to follow the rule of law, and to ensure they are not enriched by their illegal conduct.”

A criminal violation of Section 1 of the Sherman Act carries a maximum fine of $100 million for corporations.  The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. 

Today’s charges are the result of an ongoing federal investigation into bid rigging, price fixing and other anticompetitive conduct targeting U.S. Department of Defense fuel supply contracts in South Korea.  The criminal case is being prosecuted by the Antitrust Division’s Washington Criminal I Section and the United States Attorney’s Office of the Southern District of Ohio in conjunction with the DCIS, the Federal Bureau of Investigation, the Army CID, the Defense Logistics Agency Office of the Inspector General, and the Air Force Office of Special Investigations.  Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

The Civil Case:

The Department’s Antitrust Division today filed a civil antitrust complaint in the U.S. District Court for the Southern District of Ohio, and at the same time filed proposed settlements that, if approved by the court, would resolve the lawsuit against SK Energy, GS Caltex, and Hanjin for their anticompetitive conduct targeting the U.S. military in South Korea. 

As a result of this conduct, the United States Department of Defense paid substantially more for fuel supply services in South Korea than it would have had SK Energy, GS Caltex, and Hanjin competed for the fuel supply contracts.  Under Section 4A of the Clayton Act, the United States may obtain treble damages when it has been injured by an antitrust violation.  The proposed settlement provides that SK Energy pay $90,384,872, GS Caltex pay $57,500,000, and Hanjin pay $6,182,000 to the United States to resolve the civil antitrust violations.  In addition to the payments, SK Energy, GS Caltex, and Hanjin have agreed to cooperate with the ongoing civil investigation of the conduct and to abide by antitrust compliance program requirements.  The amount paid by each defendant exceeds the amount of the individual overcharge and reflects the value of defendants’ cooperation commitments and the cost savings realized by avoiding extended litigation.

The payments will also resolve civil claims that the United States has under the False Claims Act against SK Energy, GS Caltex, and Hanjin for making false statements to the government in connection with their agreement not to compete.  The Civil Division has entered into separate settlement agreements with the companies to resolve these claims. 

Except where based on admissions by defendants in the criminal pleas, the claims resolved by the civil agreements are allegations only.

The civil settlements were handled by the Antitrust Division’s Transportation, Energy, and Agriculture Section, by the Civil Division’s Fraud Section, and by the United States Attorney’s Office in the Southern District of Ohio.         

The United States’ False Claims Act civil investigation resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  Those provisions allow for private parties to sue on behalf of the United States and to share in any recovery. 

The proposed civil antitrust settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act.  Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Kathleen O’Neill, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the court may enter the civil antitrust settlement upon a finding that it serves the public interest.

CINCINNATI – A jury has convicted Ismail Salaam, 36, of Cincinnati, of sex trafficking children and producing child pornography.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Herb Stapleton, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Springdale Police Chief Michael Mathis announced the verdict reached today after a trial that began November 5 before U.S. District Judge Timothy S. Black.

According to court documents and testimony at trial, Springdale officers responded to the La Quinta Motel in Springdale in September 2016 in response to a report of a juvenile runaway in the motel. Officers discovered Salaam there with the 16-year-old juvenile runaway.

It was further discovered that Salaam and the minor girl had been together for the previous three weeks. Salaam paid for food, hairstyling, manicures and clothing for the victim.

Salaam took explicit photographs of the girl and attempted to have the victim post an advertisement on Backpage.com in the escorts section.

Salaam coordinated encounters with at least two men, in which the victim was to engage in sexual conduct in exchange for money. In one instance, an adult male had vaginal intercourse with the victim and provided $100, which the girl provided to Salaam.

In text messages, Salaam instructed the victim to flirt with the men, offer sexual acts, and collect money and marijuana.

Salaam was convicted of one count of sex trafficking children, a crime punishable by 10 years to life in prison, and two counts of producing child pornography. Each count of production carries a potential sentence of 15 to 30 years in prison.

He was charged by a criminal complaint in September 2016 and indicted by a grand jury in October 2016 and January 2017.

U.S. Attorney Glassman commended the cooperative investigation by the FBI and Springdale Police Department, as well as Assistant United States Attorneys Matthew Singer and Christy Muncy, who tried the case, and Kyle Healey, who is also representing the United States in this case. 

###

COLUMBUS, Ohio – Michael J. Favors, 26, of Columbus, pleaded guilty in U.S. District Court to conspiring to murder two potential witnesses.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Columbus Police Chief Kim Jacobs announced the plea entered into today before U.S. District Judge Michael H. Watson.

Favors and Antwan L. Hutchinson, 27, also of Columbus, were both indicted by a federal grand jury in April 2017. According to court documents, Favors and Hutchinson possessed and distributed cocaine, heroin, oxycodone and marijuana. As part of their drug conspiracy, they used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threats of force and using the homes of drug-addicted individuals. It was further part of the conspiracy to intimidate, assault, threaten and torture individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy.

Favors pleaded guilty to his role in the murders of Sidney Campbell and Marie Stamp.

Specifically, Favors pleaded guilty to five counts as charged against him in the indictment, which include conspiracy to distribute and possess with intent to distribute controlled substances, two counts of conspiracy to murder a witness, and two counts of murder through use of a firearm in relation to a drug trafficking crime. Favors faces up to life in prison.

Hutchinson and Favors were arrested on March 27, 2017 and remain in custody.

U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.

# # #

CINCINNATI – Eugene Mongar, 34, pleaded guilty in U.S. District Court to participating in a narcotics conspiracy in the Middletown Jail.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the plea entered into yesterday afternoon before U.S. District Judge Michael R. Barrett.

According to court documents, Mongar was a trustee inmate at the Middletown Jail in December 2017 when co-defendant Louis Cox III, 27, of Middletown, was arrested and booked for drug trafficking.

Cox is alleged to have smuggled fentanyl into the facility on December 1, 2017. Officers were dispatched to the jail on December 2, 2017 for several reported overdoses.

One of those inmates who had overdosed told officers Mongar had approached him with fentanyl in exchange for $20 worth of commissary.

Mongar admitted to distributing the fentanyl. Mongar himself overdosed three times within a two-day period from using the same fentanyl he was distributing.

Mongar and Cox were indicted by a federal grand jury in May 2018, at which time they were both transferred to federal custody.

Mongar pleaded guilty to one count of conspiring to distribute narcotics, a crime punishable by up to 20 years in prison.

Cox has also been charged with participating in a narcotics conspiracy, as well as distributing a controlled substance.

U.S. Attorney Glassman commended the investigation of this case by the DEA, the Middletown Police Department and Assistant United States Attorneys Ashley N. Brucato and Timothy D. Oakley, who are representing the United States in this case.

# # #

COLUMBUS, Ohio – A federal grand jury has charged a Central Ohio doctor with charges related to a health care fraud scheme that included marketing prescription creams in Sav-a-Lot and low-income neighborhoods and persistently mailing those creams to Medicaid customers, as well as prescribing and distributing Suboxone without medical necessity.

Bernard Oppong, 60, of Blacklick, Ohio was charged in a seven-count indictment on October 30 and appeared in federal court today at 9am before U.S. District Judge Algenon L. Marbley.

Benjamin C. Glassman, 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, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the charges.

According to the indictment, from January 2013 until April 2017, Oppong conspired to commit health care fraud.

Oppong was employed as a doctor at Health and Wellness Medical Center located on Perimeter Drive in Dublin. The center is affiliated with Health and Wellness Pharmacy on Blazer Parkway in Dublin. Co-defendants also previously operated a pharmacy location within Sav-a-Lot on Mock Road in Columbus.

Specifically, it is alleged Oppong and others sought to enrich themselves by billing for compound creams that were not provided or were not medically necessary, billing for counseling services that were not provided, billing for individual counseling sessions that actually occurred in a group setting and billing for counseling services performed by an unqualified individual when there was no proper supervising physician.

Compound Creams

As part of the conspiracy, it is alleged Oppong and others prescribed and Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams, and Oppong was the ordering provider for more than half a million dollars of the claims.

For example, between January 2014 and April 2015, Health and Wellness Pharmacy submitted 1,436 claims for one compound cream, known as VersabaseA. The pharmacy with the second-highest amount of claims for that cream in that time period only submitted 202 claims.

During the first quarter of 2015, Health and Wellness would sometimes bill for less than 10 prescriptions per day, and on other days it would bill for as many as 477 prescriptions. It also billed for filling prescriptions on Saturdays and Sundays when the pharmacy was not open.

It was further part of the alleged conspiracy that co-conspirators billed for the creams with no medical necessity, as patients never requested the creams, were never actually prescribed them and had never met with Oppong.

The pharmacy allegedly marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit.

It is alleged patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource. 

Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would allegedly receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know Oppong, the prescribing physician.

Suboxone

Oppong was registered through the DEA to prescribe the drug addiction treatment Suboxone to up to 275 patients at any one given time.

Health and Wellness Medical Center allegedly submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.

Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription, which was written by Oppong and co-conspirators. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.

Oppong allegedly pre-signed prescriptions for Suboxone and left them at the medical center for anyone to distribute. Prescriptions were issued to patients who had repeatedly failed urine tests.

It was part of the conspiracy, according to the indictment, that the medical center treated patients paying with cash differently than those with insurance. The patients paying with cash only had appointments every two weeks or once a month, and paid $300. Insured patients had appointments three times a week. Cash-paying patients were only required to attend 15 to 30 minutes of counseling, while insured patients were required to stay for one hour.

Oppong and co-conspirators averaged more than 150 patients per day.

Oppong is charged with one count of conspiracy to commit health care fraud and one count of executing a health care fraud scheme (each punishable by up to 10 years in prison), as well as four counts of making false health care statements (five years per count) and one count of conspiracy to distribute a controlled substance (15 years).

Darrell L. Bryant, 43, and Gifty Kusi, 34, both of Hilliard, were charged July 2017 in a related indictment and are scheduled for trial on December 3. Bryant and Kusi owned and operated both Health and Wellness Pharmacy and Health and Wellness Medical Center. They are each charged with one count of attempt and conspiracy to commit health care fraud and four counts of health care fraud.

A final defendant Jornel Rivera, 54, of Dublin, pleaded guilty in May 2018 to making false statements related to health care matters. Rivera served as the Medical Director of Health and Wellness Medical Center. His sentencing hearing has not yet been scheduled.

“Just as we aggressively investigate and prosecute those perpetuating the opioid epidemic through prescription pain-killing opioids, we must identify and hold accountable those who are fraudulently prescribing addiction-treatment opioids,” U.S. Attorney Glassman said. “If we hope to extricate ourselves from this epidemic, we must also put an end to the abuse of Suboxone.”

“Oppong is accused of prescribing treatments that weren’t medically necessary, that weren’t actually provided, or that were for people he never met,” said Ohio Attorney General Mike DeWine. “Drug treatment should be effective and honest, but in this case, our investigation found that it wasn’t.”

U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.

This case is being prosecuted as part of the Department of Justice’s Opioid Fraud and Abuse Detection Unit. Assistant United States Attorney Flaherty represents the unit in the Southern District of Ohio, which is one of 12 Districts to receive funding for such a prosecutor.

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

# # #

COLUMBUS, Ohio – United States Attorney Benjamin C. Glassman announced today that he has designated Election Officers in each of the district’s three offices who will lead the efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections. 

            Glassman appointed:

            Deputy Criminal Chief Gary Spartis in Columbus,

            Deputy Criminal Chief Emily Glatfelter in Cincinnati,

            Deputy Criminal Chief Laura Clemmens in Dayton.

As District Election Officers, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.                                                                                           

U.S. Attorney Glassman said, “Every citizen must be able to vote without interference or discrimination. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Glassman stated that the District Election Officers will be on duty in this District while the polls are open. 

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The local FBI field offices can be reached by the public at 513 421-4310.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

Complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local law enforcement by calling 911.

United States Attorney Glassman said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

# # #

COLUMBUS, Ohio –William P. Elschlager, 49, of Marietta, Ohio, was sentenced in U.S. District Court to 24 months in prison, three years of supervised release and ordered to pay a $2,500 fine for cyberstalking.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Washington County Sheriff Larry R. Mincks, Sr. announced the sentence imposed today by U.S. District Judge Michael H. Watson.

Elschlager was employed with the Ohio State Highway Patrol for 19 years and served as post commander for the Marietta Post. He was employed in law enforcement, in total, for 25 years.

According to court documents, between November 2015 and January 2016, Elschlager placed a victim under surveillance with a GPS device on the victim’s vehicle with the intent to harass and intimidate the victim. 

Elschlager made phone calls and sent text messages regarding the victim’s whereabouts and, at times, her specific location. For example, he texted the victim while she was in a retail store in Vienna, W.Va. and told her she needed to be aware of her surroundings and watch who she was around.

On more than one occasion, Elschlager sat in his vehicle at the end of the victim’s driveway and followed her in her and/or her boyfriend’s vehicle. He was also seen watching the victim at her house from an adjacent yard.

In December 2015, Elschlager initiated a traffic stop of the victim while in uniform driving his official vehicle. He turned off his belt microphone and did not ask for her identification or insurance documents. Instead, he talked about their personal issues.

In January 2016, the victim posted on social media that her vehicle had broken down. Elschlager arrived on the scene, even though the victim had not shared her location. It was later determined that her vehicle broke down because her radiator cap was missing, and a search of Elschlager’s computer revealed internet searches such as “how long can a car go without a radiator cap” and “car overheating with radiator cap off.”

Also in January 2016, when law enforcement officers conducted a search of Elschlager’s residence and electronic devices, they discovered a real-time location tracking of the victim on Elschlager’s computer. He also had the GPS tracking software on his cell phone.

“Elschlager used location information from GPS tracking, in conjunction with his law enforcement status, to relentlessly stalk and intimidate his victim,” U.S. Attorney Glassman said. “Elschlager’s position and experience as a law enforcement officer for 25 years makes the offense especially heinous.  His actions stripped his victim of a sense of security and safety. Those actions warrant time spent in prison.”

Elschlager was arrested by Washington County Sheriff’s Office deputies and indicted by a federal grand jury in May 2017. Elschlager pleaded guilty in June 2018.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Washington County Sheriff’s Office, as well as Assistant United States Attorneys Jessica H. Kim and Kevin W. Kelley, who are prosecuting the case.

# # #

CINCINNATI – Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, announced an opinion filed today in the United States Court of Appeals for the Sixth Circuit related to the District’s criminal case involving Samuel Whitt.

Whitt, 42, of Cincinnati, has been charged federally with criminal interference with federal fair housing rights and attempted arson.  In today’s opinion, the Court of Appeals reversed a prior ruling by the U.S. District Court, which would have prohibited the United States from introducing evidence regarding Whitt’s previous state misdemeanor conviction involving spray-painted racial epithets.

A federal grand jury returned an indictment in May 2017, alleging Whitt destroyed a rental home owned by an inter-racial couple in Price Hill in November 2016. According to the indictment, Whitt broke into the rental home and spray-painted the walls with messages including “die n****r” and “white power,” as well as images of swastikas. Whitt also allegedly poured quick-drying concrete into the bathroom drains and toilet; stabbed a knife into the floor; removed plumbing traps from the sinks and left the water running; turned on the gas stove in the upstairs kitchen, poured paint into the burners, and attempted to remove the smoke detector above the stove.

On the eve of trial, the District Court ruled to exclude evidence of Whitt’s prior misdemeanor crimes that involved the spray-painting of racial epithets on apartment buildings, cars and part of a church. The United States Attorney’s Office then appealed that decision.

The Court of Appeals overturned that decision today, ruling that the evidence is admissible to show that Whitt acted with racial animus in committing the 2016 crime.

“This office is committed to prosecuting hate crimes to the fullest extent of the law. This appeal is an example of that,” U.S. Attorney Glassman said.

U.S. Attorney Glassman commended the appellate work of Assistant United States Attorney C. Mitchell Hendy and Appellate Chief Mary Beth Young and the assistance of Erin Flynn with the Department of Justice’s Civil Rights Division. Assistant United States Attorneys Megan Gaffney and Kyle Healey are prosecuting the criminal case.

# # #

DAYTON – A Beavercreek man has been arrested and charged by criminal complaint with attempting to provide material support to ISIS-affiliated foreign terrorist organizations.

Naser Almadaoji, 19, an Iraqi-born U.S. citizen, was arrested yesterday at John Glenn International Airport in Columbus, Ohio. It is alleged Almadaoji planned to travel through Kazakhstan on his way to Afghanistan, where he intended to train with ISIS Wilayat Khorasan.

Assistant Attorney General for National Security John C. Demers, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, FBI Assistant Director Michael McGarrity of the Counterterrorism Division and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.

According to an affidavit filed in support of the criminal complaint, Almadaoji purchased a plane ticket for travel on October 24, 2018. It is alleged that Almadaoji intended to travel to Astana, Kazahkstan, where he planned to be smuggled into Afghanistan so that he could receive military training from ISIS Wilayat Khorasan in support of the terrorist group, or another ISIS affiliate.  Almadaoji explained to an individual whom he believed to be in contact with ISIS that he wanted “weapons experts training, planning, executing, hit and run, capturing high value targets, ways to break into homes and avoid security guards. That type of training.” 

It is alleged that in September and October 2018, Almadaoji began making travel plans to Kazakhstan. 

Prior to that, between February 16 and 24, 2018, Almadaoji traveled to Egypt and Jordan for the purpose of joining a terrorist group. In August 2018, Almadaoji allegedly communicated online with an individual he believed to be an ISIS contact; Almadaoji allegedly implied to that individual that he tried to join a terrorist group when in Jordan and Egypt, stating “I don’t wanna say here why I was in egypt but him [an Egyptian associate] and I planned something and it didn’t work at [sic] well.” 

It also is alleged that, in August 2018, Almadaoji told a second individual online—whom Almadaoji believed to be associated with ISIS—that he was “always willing” to assist with “projects” in the United States.

According to the affidavit, Almadaoji pledged allegiance to ISIS and discussed with his second contact that he planned to start a conflict between the United States Government and anti-government militias.  Almadaoji allegedly recorded and sent a video of himself wearing a headscarf and pledging allegiance to the leader of ISIS.

It is further alleged that Almadaoji translated ISIS propaganda from Arabic to English, and he told his contact—whom Almadaoji believed to be part of ISIS—“Don’t thank me . . . it’s my duty.”

Attempting to provide material support and resources to a foreign terrorist organization is a federal crime punishable by up to 20 years in prison.

Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI.

“This is the third individual arrested by the FBI on terrorism charges in just over a week.  As demonstrated by these arrests – two in Ohio and one in Illinois – the threat posed by terrorism remains extremely serious,” said Assistant Director Michael McGarrity of the FBI's Counterterrorism Division. “The FBI is working with our law enforcement partners day and night through our Joint Terrorism Task Forces across the nation to identify terrorists and those who support them.  The American public also has an important role to play, and we urge anyone who sees something suspicious to contact law enforcement.  Your tips are vitally important to protecting our country.” 

The FBI’s Dayton-Cincinnati Joint Terrorism Task Force includes officers and agents from Cincinnati, Cincinnati State, Colerain Township, Dayton, University of Cincinnati and West Chester police departments, Greene and Hamilton county sheriff’s offices, Oakwood Public Safety Department, United States Department of Homeland Security and Columbus International Airport Police and Public Safety.

The case is being prosecuted by Assistant United States Attorney Dominick S. Gerace, First Assistant United States Attorney Vipal J. Patel and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.

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

# # #

COLUMBUS, Ohio – Documents were unsealed that charge three Ohio men with crimes related to child pornography.

In May, a federal grand jury charged David E. Fairchild, 45, of Kirkersville, Ohio, Jesse G. Szuba, 31, of Newark, Ohio, and Mike Allen, 36, of  Heath, Ohio, in a second superseding indictment unsealed yesterday evening. Fairchild and Szuba are each charged with conspiring to produce child pornography, among other related crimes.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Franklin County Sheriff Dallas Baldwin, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the charges.

According to court documents, in January 2018, the Franklin County ICAC Task Force received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding a video depicting child sexual abuse. The video was uploaded to Google from the username “David TwistedBottomFreak Fairchild” and depicted an adult male anally penetrating a toddler-aged child.

The 11-count second superseding indictment alleges Fairchild sexually abused a female victim, born in 2016, and created child pornography involving the victim.

Likewise, it is alleged that Szuba attempted to produce child pornography involving a boy born in 2014.

Szuba and Fairchild allegedly met on Craigslist and communicated with each other about sexually abusing the toddlers. During their communications, they exchanged child pornography files and discussed plans to engage in various sex acts with each other and the victims.

It is further alleged that Szuba suggested other sex acts that Fairchild perpetrate against the female victim and asked Fairchild to send Szuba pictures or videos of that abuse.

In response to watching a video of Fairchild sexually abusing the toddler girl, Szuba messaged Fairchild that he “liked” the video “espically [sic] when she started whimpering.” Between January 26 and January 31, 2018, Szuba repeatedly requested, and Fairchild repeatedly sent, images and videos depicting sexual abuse of the female toddler.

Fairchild sent child pornography files to Allen, as well.

Szuba pleaded guilty in late August to advertising for child pornography, which is punishable by a range of 15 to 30 years in prison.

Conspiring to produce child pornography is also a federal crime punishable by a range of 15 to 30 years in prison. Receiving child pornography carries a potential sentence of five to 20 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and the Franklin County ICAC Task Force, as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, who are prosecuting the case.

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

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WASHINGTON – U.S. Attorney Benjamin C. Glassman announced an employee of the U.S. Attorney’s Office for the Southern District of Ohio was recognized today by Attorney General Jeff Sessions at the 66th Annual Attorney General’s Awards Ceremony.

Jessica H. Kim is the sole recipient of this year’s Attorney General’s Award for Outstanding Contributions by a New Employee.

Kim has served as an Assistant United States Attorney in Columbus for less than four years. In that time, she’s served as lead counsel in three major trial victories: United States v Harrison et al. – a complex investment fraud case involving the founders of the sports beverage OXYwater, who defrauded its investors out of more than $9 million; United States v Foster – a fraud case stemming from the OXYwater case in which a manager was convicted of defrauding celebrity clients and committing tax charges; and United States v Hoyo – a case in which the defendant had defrauded two vulnerable individuals of nearly half a million dollars in stocks and retirement funds. At trial, Kim established Hoyo’s scheme with evidence so overwhelming that after a week of trial at the close of the government’s case, Hoyo offered to plead guilty.

Kim has also indicted the first two cyberstalking cases in the District and is also co-counsel in the District’s racketeering case prosecuting 23 alleged members and associates of the transnational criminal organization MS-13.

“Jessica possesses an outstanding legal mind and is brilliant in the courtroom,” U.S. Attorney Glassman said. “She is exceptionally hard working, seemingly tireless, and relentlessly dedicated to the pursuit of justice. Through her service as an Assistant United States Attorney, Jessica is making a tremendous contribution to the people of the Southern District of Ohio – and the country.”

Kim was one of 244 department employees recognized for their distinguished public service. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.

“Service in the Department of Justice is more than a normal job; it is a calling to the highest standards of professionalism,” Attorney General Jeff Sessions said. “That is true for all of the 115,000 Department of Justice employees. But it is especially true for these award winners. And so I want to thank them and their families for their exemplary service to this Department and to the American people. They have made this Department proud.”

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DAYTON – Jeremiah Armstrong, 29, of West Alexandria, Ohio, was sentenced in U.S. District Court to 72 months in prison for possessing images and videos of child pornography, including those of prepubescent children.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.

According to court documents, in January 2016, two undercover officers from the Belmont and Hamilton county sheriff’s offices downloaded child pornography from Armstrong’s BitTorrent account. For example, one file includes a video depicting an Asian female minor and an adult male. The male sexually abuses the victim for more than an hour by performing oral sex on the child, having the child perform oral sex on him, engaging in vaginal and anal intercourse with the child, digitally penetrating the child and placing a vibrator in the victim’s vagina.

In December 2016, FBI agents seized Armstrong’s computer and discovered more than 600 videos and 200 images of child pornography. One such video is described to as “tied 8yo Cambodian boom-boom girl…raped by sex-tourist” and depicts an adult white male raping a child whose wrists are bound to her ankles by duct tape.

“Armstrong’s child pornography collection contained 87 identified series, with approximately 72 identified victims. These are real children who were sexually abused because people like Armstrong created a demand for the content to satisfy their own desires,” U.S. Attorney Glassman said. “Armstrong’s prolific collection included images of children bound by tape or rope, having sex objects used on them or involved in acts of bestiality. This is simply heinous.”

Armstrong pleaded guilty in January 2018 to possessing child pornography. He has been in custody since October 2017.

U.S. Attorney Glassman commended the cooperative investigation by the FBI and Belmont and Hamilton county sheriff’s offices, and the assistance of the West Alexandria Police Department and Preble County Sheriff’s Office, as well as Assistant United States Attorney SaMee Harden, who is representing the United States in this case. 

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COLUMBUS, Ohio – Gerald A. Lawson III, 31, of Warrensville Heights, Ohio, was sentenced in U.S. District Court to 60 months in prison for acting as a straw purchaser for Quentin L. Smith, a convicted felon who shot and killed two Westerville Police Officers on February 10, 2018.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence imposed today by Chief U.S. District Judge Edmund A. Sargus, Jr.

According to court documents, when Westerville Police Officers Anthony Morelli and Eric Joering responded to a domestic disturbance call on Cross Wind Drive in Westerville on February 10, Smith was armed with a Glock semi-automatic handgun.

As a convicted felon, Smith is prohibited from purchasing or possessing a firearm.

Smith provided Lawson, a longtime friend, money for the firearm and an extra $100 to compensate Lawson – who knew Smith had been convicted of a felony burglary offense and domestic violence – for buying the gun for him.

On May 18, 2017, Lawson purchased the Glock handgun at Stonewall Gun Shop and Pistol Range in Broadview Heights, Ohio. When purchasing the handgun, he lied on an ATF Firearms Transaction Record Form and said he was not acquiring it on behalf of another person.

Lawson pleaded guilty in May 2018 to aiding and abetting the possession of a firearm by a prohibited person.

“As a result of his prior convictions, Smith should never had access to the firearm he used to kill Officers Joering and Morelli,” U.S. Attorney Glassman said. “Lawson knew that Smith had a violent past, including a history of domestic violence, that prohibited Smith from purchasing a firearm, and Lawson chose to arm him with a deadly handgun anyway. To be clear, Lawson did not kill the officers. Smith did. But Lawson is responsible for putting a gun in Smith’s hands, and his sentence today reflects that responsibility.”

U.S. Attorney Glassman added, “More broadly, felons should not have access to guns. Straw purchasing must stop.”

U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorney Noah R. Litton, who is prosecuting the case.

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A Germantown, Ohio businessman who controlled the operation of an anti-aging skincare business in Dayton, Ohio was sentenced to 33 months in prison today following his November 2017 conviction by a federal jury on seven counts of filing false corporate, individual, and private foundation tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and evidence presented at trial, James Wright, 63, ran the day-to-day operations of B&P Company, Inc. (B&P), which manufactured and sold an array of skincare products, including Frownies, a wrinkle reduction product endorsed by celebrities.  Wright’s great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since.  Beginning in the late 1990s, Wright formed a series of entities that he used to divert money from B&P to himself and members of his family.  Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant, Inc., to which B&P paid “management fees.” Wright caused the preparation of false corporate tax returns for The Remnant on which he fraudulently deducted personal expenses, including rent, utilities, and pool and lawn care for his residence.  Wright also used funds from The Remnant’s bank accounts to pay rent for one of his daughters in New York and California.  Wright paid personal expenses directly out of B&P’s bank accounts as well.  He directed employees of B&P to use corporate funds to pay for the rent and utilities at an apartment rented by his mother as well as rent for his daughter in New York.

In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation.  Wright caused B&P to make donations to the foundation and then used more than $170,000 of the foundation’s funds over a seven-year period to pay for high school and college tuition for all five of his children.  According to the testimony at trial, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation’s tax returns and pay excise taxes on.  When Wright filed the foundation’s 2003 through 2009 returns however, he falsely reported that he had not engaged in acts of self-dealing and failed to pay the excise taxes due on the distributions.

The evidence at trial established that Wright had a long history of interactions with the IRS.  In 1998, Wright pleaded guilty to tax evasion for using trusts to conceal income from the IRS.

In addition to the term of imprisonment, U.S. District Judge Walter H. Rice ordered Wright to serve one year of supervised release and pay $146,404 in restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who prosecuted the case.  Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their support during the investigation and prosecution of this case.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

COLUMBUS, Ohio – Former Ohio State Highway Patrol Trooper Jason J. Delcol was sentenced in U.S. District Court today to 24 months in prison for his role in a drug-trafficking ring.

Co-defendant William Covrett was also sentenced today. He received 18 months in prison for conspiring to possess and distribute controlled substances.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and members of the Delaware County Drug Task Force announced the sentence imposed by U.S. District Court Judge Algenon L. Marbley.

Delcol and Covrett were two of six men charged in February 2018 in a drug-trafficking operation in Delaware, Ohio. Delcol pleaded guilty in May 2018 to one count each of conspiracy to distribute controlled substances within 1,000 feet of a public elementary school, witness tampering and possession of an unregistered machine gun and an unregistered silencer.

According to the Statement of Facts, in 2017 and 2018, Delcol engaged in a drug-trafficking conspiracy with co-defendants Benjamin Owings and Nicholas Glassburn. Delcol engaged in the conspiracy while serving as a Trooper in the Ohio State Highway Patrol.

Delcol obtained drugs from Owings – namely, testosterone, anabolic steroids and human growth hormone – and then provided them to Glassburn. Likewise, he obtained separate drugs – hydrocodone, oxycodone and Xanax – from Glassburn and provided them to Owings. Most of the time, Delcol distributed the substances to Glassburn at Glassburn’s residence on Rheem Street, which is near Conger Elementary School in Delaware.

Glassburn received marijuana, Xanax, Adderall, Suboxone, oxycodone and hydrocodone from Covrett.

In August 2017, Delcol committed witness tampering by engaging in misleading conduct toward local law enforcement to help Glassburn avoid arrest and prosecution. According to the Statement of Facts, on August 5, 2017, police encountered Glassburn asleep at the wheel and when officers searched his vehicle, they found cocaine and crack cocaine. Glassburn untruthfully told law enforcement he had found the drugs in one of his children’s rooms and had removed them. He said he had called a friend who was a state trooper, Delcol, and Delcol told him to destroy the drugs or take them to a police station. Law enforcement called Delcol to confirm the story and Delcol identified himself as a state trooper and lied on Glassburn’s behalf. Four days later in a follow-up call, Delcol again lied to police to help Glassburn.

Glassburn pleaded guilty in July to conspiracy to distribute controlled substances within 1,000 feet of a public elementary school and possessing a firearm as a convicted felon.

Stevedore Crawford engaged in the drug-trafficking conspiracy by distributing cocaine and crack cocaine to Glassburn. He pleaded guilty in May to one count of conspiracy to distribute controlled substances within 1,000 feet of a public elementary school. The conspiracy charge in Crawford’s case is punishable by a range of five to 80 years in prison.

Carlos Carvalho also pleaded guilty to one count of money laundering, which is punishable by up to 20 years in prison. According to his Statement of Facts, from 2016 to 2018, Carvalho supplied Glassburn with marijuana. He would often travel to Colorado to purchase multiple pounds of marijuana and instructed Glassburn to transfer drug proceeds from Ohio to Colorado to further the drug-trafficking operation. Carvalho is currently a fugitive.

Owings distributed testosterone, anabolic steroids, human growth hormone and oxycodone pills to Delcol. He also received hydrocodone, oxycodone and Xanax from Delcol. Owings also pleaded guilty to one count of conspiracy to distribute controlled substances. He was sentenced in September to time served and three years of supervised release.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Delaware County Drug Task Force, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.

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