Southern District of Ohio

DAYTON – Thurston Lewis Goodjohn, 34, of Springfield, was sentenced in U.S. District Court to 52 months in prison for illegally possessing a firearm.

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), Clark County Prosecuting Attorney D. Andrew Wilson and North Hampton Police Chief Jarrod Campbell announced the sentence handed down Tuesday by District Judge Walter H. Rice.

According to the Statement of Facts in this case, police stopped Goodjohn while he was driving in the Clark County village of North Hampton on April 8, 2017.  The police officer saw a .40 caliber handgun in plain view in the car along with a magazine containing 15 rounds of ammunition. Goodjohn admitted that the gun was his and that he knew he was not allowed to possess a firearm because he had prior felony convictions.

Goodjohn pleaded guilty before Judge Rice on July 9, 2018 to one count of felon in possession of a firearm.

U.S. Attorney Glassman commended the cooperative investigation by ATF and North Hampton Police, as well as Assistant United States Attorney Andrew Hunt and former Special Assistant U.S. Attorney and former Clark County Assistant Prosecutor Andrew Picek, who represented the United States in this case. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

###

CINCINNATI – A Chinese Ministry of State Security (MSS) operative, Yanjun Xu, aka Qu Hui, aka Zhang Hui, has been arrested and charged with conspiring and attempting to commit economic espionage and steal trade secrets from multiple U.S. aviation and aerospace companies. Xu was extradited to the United States yesterday.

 

The charges were announced today by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Southern District of Ohio Benjamin C. Glassman, Assistant Director Bill Priestap of the FBI’s Counterintelligence Division, and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division.

 

“This indictment alleges that a Chinese intelligence officer sought to steal trade secrets and other sensitive information from an American company that leads the way in aerospace,” said Assistant Attorney General Demers. “This case is not an isolated incident. It is part of an overall economic policy of developing China at American expense. We cannot tolerate a nation’s stealing our firepower and the fruits of our brainpower. We will not tolerate a nation that reaps what it does not sow.” 

 

“Innovation in aviation has been a hallmark of life and industry in the United States since the Wright brothers first designed gliders in Dayton more than a century ago,” said U.S. Attorney Glassman. “U.S. aerospace companies invest decades of time and billions of dollars in research.  This is the American way. In contrast, according to the indictment, a Chinese intelligence officer tried to acquire that same, hard-earned innovation through theft. This case shows that federal law enforcement authorities can not only detect and disrupt such espionage, but can also catch its perpetrators. The defendant will now face trial in federal court in Cincinnati.”

 

“This unprecedented extradition of a Chinese intelligence officer exposes the Chinese government's direct oversight of economic espionage against the United States,” said Assistant Director Priestap.

 

Yanjun Xu is a Deputy Division Director with the MSS’s Jiangsu State Security Department, Sixth Bureau. The MSS is the intelligence and security agency for China and is responsible for counter-intelligence, foreign intelligence and political security.  MSS has broad powers in China to conduct espionage both domestically and abroad.

 

Xu was arrested in Belgium on April 1, pursuant to a federal complaint, and then indicted by a federal grand jury in the Southern District of Ohio. The government unsealed the charges today, following his extradition to the United States. The four-count indictment charges Xu with conspiring and attempting to commit economic espionage and theft of trade secrets. 

 

***

According to the indictment:

Beginning in at least December 2013 and continuing until his arrest, Xu targeted certain companies inside and outside the United States that are recognized as leaders in the aviation field. This included GE Aviation. He identified experts who worked for these companies and recruited them to travel to China, often initially under the guise of asking them to deliver a university presentation. Xu and others paid the experts’ travel costs and provided stipends.

 

***

An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

 

The maximum statutory penalty for conspiracy and attempt to commit economic espionage is 15 years of incarceration. The maximum for conspiracy and attempt to commit theft of trade secrets is 10 years.  The charges also carry potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

 

This investigation was conducted by the FBI’s Cincinnati Division, and substantial support was provided by the FBI Legal Attaché’s Office in Brussels. The Justice Department’s Office of International Affairs provided significant assistance in obtaining and coordinating the extradition of Xu, and Belgian authorities provided significant assistance in securing the arrest and facilitating the surrender of Xu from Belgium. 

 

Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI and the assistance of the Belgian authorities in the arrest and extradition of Xu. Mr. Demers and Mr. Glassman also commended the cooperation of GE Aviation throughout this investigation. The cooperation and GE Aviation’s internal controls protected GE Aviation’s proprietary information. 

 

The case is being prosecuted by Assistant U.S. Attorneys Timothy S. Mangan and Emily N. Glatfelter of the Southern District of Ohio, and Trial Attorneys Thea D. R. Kendler and Amy E. Larson of the National Security Division’s Counterintelligence and Export Control Section. 

 

# # #

A Chinese Ministry of State Security (MSS) operative, Yanjun Xu, aka Qu Hui, aka Zhang Hui, has been arrested and charged with conspiring and attempting to commit economic espionage and steal trade secrets from multiple U.S. aviation and aerospace companies.  Xu was extradited to the United States yesterday.

The charges were announced today by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Southern District of Ohio Benjamin C. Glassman, Assistant Director Bill Priestap of the FBI’s Counterintelligence Division, and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division.

“This indictment alleges that a Chinese intelligence officer sought to steal trade secrets and other sensitive information from an American company that leads the way in aerospace,” said Assistant Attorney General Demers.  “This case is not an isolated incident.  It is part of an overall economic policy of developing China at American expense.  We cannot tolerate a nation’s stealing our firepower and the fruits of our brainpower.  We will not tolerate a nation that reaps what it does not sow.” 

“Innovation in aviation has been a hallmark of life and industry in the United States since the Wright brothers first designed gliders in Dayton more than a century ago,” said U.S. Attorney Glassman.  “U.S. aerospace companies invest decades of time and billions of dollars in research.  This is the American way.  In contrast, according to the indictment, a Chinese intelligence officer tried to acquire that same, hard-earned innovation through theft.  This case shows that federal law enforcement authorities can not only detect and disrupt such espionage, but can also catch its perpetrators.  The defendant will now face trial in federal court in Cincinnati.”

"This unprecedented extradition of a Chinese intelligence officer exposes the Chinese government's direct oversight of economic espionage against the United States,” said Assistant Director Priestap.

Yanjun Xu is a Deputy Division Director with the MSS’s Jiangsu State Security Department, Sixth Bureau.  The MSS is the intelligence and security agency for China and is responsible for counter-intelligence, foreign intelligence and political security.  MSS has broad powers in China to conduct espionage both domestically and abroad.

Xu was arrested in Belgium on April 1, pursuant to a federal complaint, and then indicted by a federal grand jury in the Southern District of Ohio.  The government unsealed the charges today, following his extradition to the United States.  The four-count indictment charges Xu with conspiring and attempting to commit economic espionage and theft of trade secrets. 
 

***

According to the indictment: Beginning in at least December 2013 and continuing until his arrest, Xu targeted certain companies inside and outside the United States that are recognized as leaders in the aviation field. This included GE Aviation. He identified experts who worked for these companies and recruited them to travel to China, often initially under the guise of asking them to deliver a university presentation. Xu and others paid the experts’ travel costs and provided stipends.
 

***

An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt.  Every defendant is presumed innocent until, and unless, proven guilty.

The maximum statutory penalty for conspiracy and attempt to commit economic espionage is 15 years of incarceration.  The maximum for conspiracy and attempt to commit theft of trade secrets is 10 years.  The charges also carry potential financial penalties.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.  If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This investigation was conducted by the FBI’s Cincinnati Division, and substantial support was provided by the FBI Legal Attaché’s Office in Brussels.  The Justice Department’s Office of International Affairs provided significant assistance in obtaining and coordinating the extradition of Xu, and Belgian authorities provided significant assistance in securing the arrest and facilitating the surrender of Xu from Belgium. 

Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI and the assistance of the Belgian authorities in the arrest and extradition of Xu.  Mr. Demers and Mr. Glassman also commended the cooperation of GE Aviation throughout this investigation. The cooperation and GE Aviation’s internal controls protected GE Aviation’s proprietary information. 

The case is being prosecuted by Assistant U.S. Attorneys Timothy S. Mangan and Emily N. Glatfelter of the Southern District of Ohio, and Trial Attorneys Thea D. R. Kendler and Amy E. Larson of the National Security Division’s Counterintelligence and Export Control Section.  

CINCINNATI – Donte Holdbrook, 24, of Middletown, pleaded guilty in U.S. District Court to his role in a local narcotics conspiracy tied to the Sinaloa Drug Cartel in Mexico.

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, Cincinnati Police Chief Eliot K. Isaac, Middletown Police Chief Rodney Muterspaw, Preble County Prosecuting Attorney Martin P. Votel and Ohio State Highway Patrol Superintendent Col. Paul A. Pride announced the plea entered into yesterday before U.S. District Judge Timothy S. Black.

Holdbrook was one of 12 individuals charged by a Cincinnati federal grand jury in March in a narcotics and money laundering conspiracy. Members of the group distributed fentanyl from Mexico in Middletown and sent proceeds back to the Sinaloa Drug Cartel in Mexico. A number of others were charged in San Diego, Calif. in a related case.

This investigation began when undercover FBI agents in San Diego learned that a known Sinaloa Cartel money-laundering boss, Jose Lopez-Albarran, coordinated and conducted multiple bulk cash pickups from a drug trafficking organization within the Southern District of Ohio.

Lopez-Albarran was one of 40 defendants charged in the Southern District of California. According to court documents there, he and other members of the Cartel allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. Through the investigation in California, law enforcement discovered multiple drug-trafficking cells throughout the United States.

The Middletown, Ohio drug-trafficking cell led by Holdbrook sent drug proceeds back to the Sinaloa Cartel in Mexico via Lopez-Albarran.

Holdbrook was found to be in possession of 366 grams of fentanyl during a traffic stop on December 2, 2017, and in the plea also admitted he arranged for multiple shipments of fentanyl into the Middletown area.

Holdbrook pleaded guilty to the narcotics conspiracy and faces 10 years to life in prison.

U.S. Attorney Glassman commended the investigation of the cases by the FBI – including FBI San Diego Cross Border Violence Task Force, FBI Cincinnati Division and FBI Cleveland Division, Cincinnati and Middletown police departments, Ohio State Highway Patrol and Warren County Drug Task Force, as well as the coordination of Preble County Prosecutor Votel. Glassman also commended Assistant United States Attorney Karl P. Kadon, who is representing the United States in this case.

# # #

COLUMBUS, Ohio – Scott W. Atway, 44, of Powell, was sentenced in U.S. District Court to 12 months and one day in prison, four months of community confinement and eight months of house arrest for filing a false tax return. Atway was also ordered to pay restitution in the amount of $600,000.

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 sentence handed down yesterday by Chief U.S. District Judge Edmund A. Sargus, Jr.

According to the statement of facts in this case, for several years, including 2010 through 2013, Atway owned multiple Verizon Wireless stores in Central Ohio aside from being a self-employed attorney who operated his own law practice. In 2013, he also generated income from a real-estate holding company for his rental properties.

Atway provided incomplete or false documents to his tax-return preparer for these years. He further made false statements to her when asked to justify how he paid for his lifestyle.

During this timeframe, Atway was building and improving upon a luxury home in Powell. He paid more than $800,000 to contractors for additions including an enclosed tennis court, basketball court, in-ground pool, six-car garage and an elevator. These expenses could not have been covered by the amount of taxable income Atway reported to the IRS.

He was also buying high-end cars, including a $99,000 Land Rover, a $50,000 Porsche 911, a $24,000 Lexus IS250, a $71,000 BMW X6 and a nearly $143,000 Audi R8. (The purchase prices of some of the cars were partially offset by trade-ins.) For these cars, he either received no financing or paid off the loans early, and the income he reported to the dealerships was much greater than what he reported on his tax returns.

“Instead of paying the taxes that he owed, Atway bought high-end vehicles and built an extravagant home for himself,” U.S. Attorney Glassman said. “Atway stole from all of us—to the tune of over half a million dollars. He deserves the term of incarceration he received.”

“The license to run a business is not a license to avoid paying taxes,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “By filing false tax returns, he cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy.”

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

# # #

COLUMBUS, Ohio – A federal grand jury has charged 19 Columbus men associated with a local Crips gang in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes. The indictment was returned in Columbus on September 27 and 15 of the defendants are in custody today.

Attorney General Jeff Sessions, 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), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division Columbus Police Chief Kim Jacobs, United States Marshal Pete Tobin  and Franklin County Prosecutor Ron O’Brien announced the charges.

According to the indictment, the men are members and associates of the Trevitt and Atcheson Crips gang known as T&A.

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.

The criminal organization included various subgroups, including, Atcheson Crip Gangsters (ACG), Catch A Body (CAB), Kwamie Gang (KMG), Waun Gang, Family Over Everything (FOE), Go Gang, On The Family (OTF) Toe Tag, and Go Crazy.

T&A identifies with the national Crip gang, adopting the traditional colors, symbols, culture, codes and enemies of the Crip gang. Its local rival Blood gangs include, but are not limited to, the Easthaven Bloods, Poindexter Thug Life (PTL) and the Milo Bloods.

T&A members marked the gang’s territory with graffiti and themselves with common tattoos. Members also produced songs to boast of the gang’s existence, communicate their violent methods and threaten non-members and rival gang members. These songs were posted on various social networking sites used by the T&A members.

Those charged include:

Name

Also Known As

Age

Dominique Bryant

Doggy

26

Charles Carson

 

23

Jonathan Dantzler

Jesus

26

Terrell Hansard

T Body

21

Andrew Harris

Drip

30

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

Terrance Pyfrom

Tee

21

Donovan Reed

Don Don

26

Deswan Robinson

Dezzy

25

Thomas Seals

Bhomo

24

Derrick Thornton

Fresh

29

Marcus Walton

Ox, Wax

35

Michael Watson

Sossa

25

 The Indictment

The seven-count indictment alleges:

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 within the Southern District of Ohio and elsewhere.

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.

On July 1, 2012 in the area of 431 Ellison Street, Dantzler and Nelms shot and killed Franky Tention.

On March 15, 2013, Martin, Nelms and Robinson shot and murdered William Moore, a rival gang member.

Michael Henderson and Watson shot and killed Marvin Ector on December 23, 2013, on East 5th Avenue.

On January 24, 2015, Carson shot and murdered Quincy Story.

Hansard was involved in the murder of Deaonte Fisher on March 4, 2016.

Additionally, from June 14, 2010 until March 15, 2017, the indictment details at least 26 separate incidences in which T&A gang members attempted to murder more individuals by shooting at them.

Co-conspirators also threatened and/or intimidated witnesses, using violence or the threat of violence to deter them from providing information to law enforcement and to enforce a “no snitching” code.

Defendants distributed cocaine, crack cocaine, heroin, oxycodone and marijuana. They also used “trap houses” in other individuals’ names to store and sell narcotics.

T&A members used the drug proceeds to purchase firearms to use in gang wars in Columbus. They often traveled to Huntington, W.Va, Portsmouth, Ohio and Chillicothe, Ohio (among other locations) to sell and purchase drugs and guns.

Each of the defendants faces life in prison. Carson, Dantzler, Hansard, Martin, Nelms, Robinson and Watson are charged with murder in aid of racketeering, a crime that could make them eligible for the death penalty. 

“Violent gangs seek to dominate and control neighborhoods in Columbus and in cities across America—but we're fighting back,” Attorney General Jeff Sessions said. “Under the Department of Justice's crime reduction strategy, Project Safe Neighborhoods, we work with state and local law enforcement to target the most violent criminals in the most violent areas. In 2017 we prosecuted more violent criminals than in any year on record—and this past fiscal year we broke our own record. Today we take our next step of indicting 19 alleged gang members from the King-Lincoln neighborhood who are facing potential life sentences. The indictment alleges multiple murders and attempted murders. I want to thank the ATF, FBI, the Marshals Service, Columbus Police, and Franklin County Prosecutor Ron O’Brien for their hard work and I especially want to thank AUSAs Kevin Kelley, Noah Litton, and David DeVillers. This case is a perfect example of what PSN is all about.”

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

# # #

COLUMBUS, Ohio – Nehemias Joel Martinez-Hernandez, also known as Mysterio, 21, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to commit racketeering.

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, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Kim Jacobs announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.

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

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, Martinez-Hernandez has accepted responsibility for his role in the murder of Serrano-Ramos, as well as an attempted murder and drug trafficking.  Martinez-Hernandez 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.

# # #

COLUMBUS, Ohio – A federal grand jury has charged Darnell A. Reeves, 32, of Delaware, Ohio, in a nine-count indictment returned here today. Reeves is charged with drug charges related to the distribution of crack cocaine, fentanyl and heroin that resulted in four overdoses, three of them fatal.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Delaware County Prosecutor Carol O’Brien, Delaware County Sheriff Russell L. Martin, Delaware Police Chief Bruce Pijanowski and other members of the Delaware County Drug Task Force announced the charges returned yesterday and filed today.

According to court documents, investigators traced fentanyl, heroin and crack cocaine back to Reeves (also known as Bookie), after they responded to the scene of an overdose death in Ostrander, Ohio on February 28. The victim was found on a couch in a shed, slumped forward with a used syringe under him.

Further investigation tied Reeves’s alleged trafficking activity to an overdose death on January 22, a nonfatal overdose on February 12 and a fatal overdose on March 2.

Reeves was arrested in June in connection to a federal criminal complaint and has remained in custody since.

Distribution of a controlled substance that resulted in serious bodily injury and/or death carries a potential sentence of 20 years to life in prison.

“This case is an example of how all levels of law enforcement are working together to trace overdose deaths back to their alleged suppliers and prosecute in the most appropriate venue,” U.S. Attorney Glassman said. “We will continue to collaborate in order to combat the impact of fentanyl, heroin and other drugs on our communities.”

“The charges against Mr. Reeves tragically illustrate how frequently these deadly drugs are claiming the lives of our community members, especially here in Ohio with over 4000 deaths each year since 2016,” said Steve Francis, HSI special agent in charge for Michigan and Ohio. “HSI is committed to stopping the flow of these highly dangerous drugs into our communities and holding those who distribute this poison accountable for their actions.”

U.S. Attorney Glassman commended the investigation of this case by HIS, Delaware County Sheriff’s Office, Delaware Police Department and members of the Delaware County Drug Task Force, as well as Deputy Criminal Chief Michael Hunter, who is prosecuting the case.

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

# # #

COLUMBUS, Ohio – Michael (also known as Mickey) A. Prisley, 53, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison for participating in a conspiracy to file hundreds of false income tax returns and assisting co-conspirators in obtaining a quarter of a million dollars in false refunds.

Prisley pleaded guilty in April to one count of conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). As part of the plea, Prisley agreed to pay more than $250,000 in restitution to 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 imposed today by U.S District Judge James L. Graham.

According to court documents, Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014.

Between the fall of 2009 and September 2015, Prisley conspired with others to defraud the IRS by filing hundreds of false income tax returns in an attempt to obtain fraudulent income tax refunds.

Prisley deposited fraudulently obtained income tax refund checks into his bank accounts and withdrew the funds in cash in order to pay his co-conspirators their share. Prisley also received controlled substances in exchange for cashing the fraudulently obtained income tax refund checks.

In addition, Prisley provided his co-conspirators with false power of attorney forms so that his co-conspirators could cash fraudulently obtained income tax refund checks without the listed taxpayer's knowledge.

As a result of the fictitious income tax return filings, a total of $466,842 in fraudulent income tax refunds was released by the IRS, of which Prisley assisted his co-conspirators in obtaining $250,220.99.

“As a former assistant prosecuting attorney, Mr. Prisley knows that stealing from the government is a serious crime,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “No one is entitled to an undeserved windfall and those who try to steal the taxpayers’ money face severe consequences, including incarceration and having to pay back all the stolen refund money.”

Co-defendants Tawnya Writesel (also known as Tawnya Rutan), Amy K. France and Denard T. Nelson were also charged in relation to this case.

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.

Writesel was indicted in November 2017 on one count of conspiracy to submit false claims for income tax refunds and four counts of filing false claims for income tax refunds. She pleaded guilty in May to one count of conspiracy to submit false claims.  Her sentencing date is yet to be scheduled.

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

# # #

COLUMBUS, Ohio – A federal grand jury has charged Robert Wells, 49, of Pataskala, Ohio, with crimes related to using excessive force as a law enforcement officer in an indictment returned here today.

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 Franklin County Prosecutor Ron O’Brien announced the charges.

According to the indictment, on May 1, 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, the indictment alleges that 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.

Deprivation of rights under color of law is a federal crime punishable by up to 10 years in prison when it results in bodily injury. Obstructing a federal investigation carries a potential maximum sentence of up to 20 years in prison.

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.

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

# # #

CINCINNATI – Ronquieze Head, 36, and Seronte Newby, 30, both of Cincinnati, pleaded guilty in U.S. District Court to crimes related to theft from gun stores in Ohio and Kentucky.

Specifically, the defendants each pleaded to one count of conspiracy to commit theft and two counts of theft from a federal firearms licensee. Head also pleaded guilty to one count of possession of a stolen firearm and possession of a firearm by a convicted felon.

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 pleas entered into yesterday before U.S. District Judge David L. Bunning.

Head and Newby stole approximately 20 firearms from a gun store in Sharonville, Ohio on July 2, 2017. On July 8, 2017, the defendants stole approximately 22 firearms from a gun store in Florence, Ky. Finally, the pair stole approximately 32 weapons from a third gun store in Springboro, Ohio on July 16, 2017.

The defendants were indicted by a federal grand jury in November 2017.

Conspiracy to commit theft is punishable by up to five years in prison. Theft from a federal firearms licensee, possession of a firearm by a convicted felon and possession of a stolen firearm are each crimes punishable by up to 10 years in prison.

U.S. Attorney Glassman commended the investigation of this case by ATF and Sharonville, Springfield, Florence, Springboro and Cincinnati police departments, as well as Assistant United States Attorneys Megan Gaffney and Matthew Singer, who are prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
 

# # #

DAYTON – Shawn Whitaker, 32, of Troy, Ohio, was sentenced in U.S. District Court to 240 months in prison for creating child pornography of a five-year-old and a 15-year-old.

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 Troy Police Chief Charles Phelps announced the sentence handed down today by U.S. District Judge Walter H. Rice.

According to court documents, from at least November 2016 until March 2017, Whitaker engaged in a sexual relationship with a 15-year-old female. Whitaker recorded their intercourse on his iPhone and also took multiple sexually explicit photographs of the minor.

Law enforcement officials searched Whitaker’s electronic devices as part of the investigation into the conduct involving this victim and discovered additional child pornography.

Further investigation revealed that, in October 2016, Whitaker had also created child pornography of a five-year-old girl. Investigators discovered 21 pictures of the victim in various states of undress and multiple close-up images of the girl nude. Whitaker took these photographs at his residence in Troy and instructed the girl how to pose for these pictures.

Whitaker pleaded guilty in November 2017 to two counts of producing child pornography.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Troy Police Department, as well as Assistant United States Attorney Amy M. Smith, who is representing the United States in this case.

# # #

COLUMBUS, Ohio – Richard R. Edwards, 29, of Columbus, was sentenced in U.S. District Court to 180 months in prison for distributing heroin and fentanyl that resulted in the death or serious bodily injury of another.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Prosecutor Ron O’Brien, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Office’s Heroin Overdose Prevention & Education (HOPE) Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.

According to court documents, Edwards admitted that his distribution of heroin and fentanyl led to a non-fatal overdose of a Columbus man in August 2016, and a fatal overdose of a Columbus woman in December 2016. 

Edwards was arrested in March 2017 and has remained in custody since. He pleaded guilty to distribution of heroin in August 2017.

“Drug dealers like Edwards who traffic in fentanyl deal death,” U.S. Attorney Glassman said. “I want them to know that they face lengthy terms in federal prison for that conduct. Trafficking in deadly opioids must stop.”

“This defendant's conviction and subsequent significant prison term demonstrates HSI's unrelenting resolve to bring to justice those responsible for distributing this lethal poison in our communities,” said Steve Francis, Special Agent in Charge with Homeland Security Investigations. “HSI will continue our close collaboration with all members of the Ohio law enforcement community, including the Franklin County Sheriff’s Office who initiated this case, to combat this deadly scourge.”

U.S. Attorney Glassman commended the investigation of this case by HSI and HOPE Task Force officers, as well as Deputy Criminal Chief Michael J. Hunter and Assistant United States Attorney Kelly A. Norris, who are representing the United States in this case.

Established in 2016, the Heroin Overdose Prevention & Education Task Force was created as a restructuring of the Franklin County Drug Task Force. Experienced narcotics and homicide detectives working on the HOPE Task Force are treating opiate overdose scenes as crime scenes, investigating the source of the supply that caused the overdose. This case represents the first federal prosecution of a “death-resulting” case in Columbus that stemmed from a joint investigation with the HOPE Task Force.

# # #

COLUMBUS, Ohio – A federal grand jury has charged four individuals with conspiring to illegally purchase firearms in an indictment returned here August 30 and unsealed today.

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 charges.

Those charged include, Jeremy Hearn, 40, and Marcedes Green, 28, both of Columbus, Jerome Watkins, Jr., 33, of Niagara Falls, N.Y. and Kristina DeLorenzo, 31, of Lewiston, N.Y.

According to the indictment, from at least January 2018 until April 2018, co-conspirators served as either straw purchasers, couriers or resellers of firearms purchased in Columbus and eventually resold in Canada.

Hearn would allegedly purchase the firearms from various federally-licensed firearms dealers in Central Ohio by providing false information on ATF Form 4473. It is further alleged that Green, with money provided by Hearn, assisted in the purchase of at least six of the firearms.

Hearn, Watkins and DeLorenzo then allegedly acted as couriers or assisted in courier duties, regularly traveling between Columbus and Niagara Falls and/or across the Canadian border for resale.

“The group allegedly moved at least 38 firearms from Central Ohio to eventually be resold in Canada,” said U.S. Attorney Glassman.

Conspiracy to illegally transfer firearms is a federal crime punishable by up to five years in prison.

U.S. Attorney Glassman commended the investigation of this case by ATF, and the assistance of the ATF field office in Buffalo, New York, the U.S. Attorney’s Offices for the Northern District of Ohio and the Western District of New York, as well as Assistant United States Attorneys S. Courter Shimeall and Kevin W. Kelley, 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 – Maria Mascio, 62, of Columbus, Ohio, was sentenced in U.S. District Court today to 24 months in prison and ordered to pay $1.1 million in restitution for executing a decade-long health care fraud scheme.

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, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Metro Washington Field Office, Ohio Attorney General Mike DeWine, Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy and Jim Wernecke, Director, Ohio Bureau of Workers’ Compensation special investigations department, announced the sentence handed down today by U.S. District Judge Michael H. Watson.

According to court records, Mascio, a licensed pharmacist and owner of Family Medical Pharmacy and Visions Systems in Columbus, Ohio, executed a health care fraud scheme for at least a decade (from 2003 through 2013). Her scheme caused a loss of $1.1 million.

Mascio schemed to defraud Medicare, Ohio Medicaid, Ohio Bureau of Workers’ Compensation and private insurers by billing for sample drugs that could not be legally sold and for medications that had not been dispensed.

Mascio owned an office building on Karl Road in which her pharmacy and the medical offices of two doctors were located. Mascio directed pharmacy employees to remove prescription drug samples from the medical offices and place them in a storage room used by the pharmacy.

After collecting the drug samples, Mascio or employees under her direction removed the drugs from their individualized packaging and stored them in plastic bins. They disposed of the sample packaging in the dumpster located on the premises of the pharmacy and placed the sample drugs into the pharmacy inventory where they were co-mingled with the pharmacy’s stocked drugs and dispensed to the general public.

Mascio also orchestrated the submission of false claims for the sample drugs to health care benefit programs, including Medicare, Ohio Medicaid and Ohio Bureau of Workers’ Compensation.

She pleaded guilty in May to one count of health care fraud scheme and one count of conspiracy to commit an offense against the United States.

“Mascio’s criminal conduct included breaking into several physician offices and stealing large quantities of sample prescription drugs before shucking them from their original packaging,” U.S. Attorney Glassman said. “By misbranding the drugs, there was no method by which the drugs could be identified should there be a recall by the manufacturer, nor was there any way to determine the expiration date or whether the drugs remained effective. This is clearly a danger to the community, and we will continue to identify and prosecute this sort of criminal behavior.”

“Patients who are taking prescription medications need to be able to trust that the medicine that is being dispensed to them is safe and effective” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “This defendant violated that trust and put her personal greed above the public’s health and safety. The OIG will continue to work with our law enforcement partners to ensure that medical professionals who commit criminal acts such as this are held accountable.”

“Our goal is to protect Ohio families, and fighting health care fraud is a priority,” said Ohio Attorney General Mike DeWine. “In this case, the defendant carried on her scheme for over a decade and put people at risk. We appreciate the cooperation of our law enforcement partners in holding her accountable.”

U.S. Attorney Glassman commended the investigation of this case by the FBI, Health and Human Services Office of the Inspector General, Ohio Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, Ohio Bureau of Workers’ Compensation and FDA, as well as Assistant United States Attorney Kenneth F. Affeldt and Special Assistant United States Attorney Maritsa A. Flaherty of Ohio Attorney General Mike DeWine’s office, who are prosecuting the case.

# # #

COLUMBUS, Ohio –William D. Merckle, 57, of Corning, Ohio, pleaded guilty in U.S. District Court to violating the Federal Alcohol Administration Act and distributing hydrocodone.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and officials from the United States Treasury Department Alcohol and Tobacco Tax and Trade Bureau and Ohio Department of Safety Ohio Investigative Unit announced the plea offered today before U.S. Magistrate Judge Norah McCann King.

The Federal Alcohol Administration Act establishes national rules governing the distribution, production and importation of alcohol.

According to an affidavit filed in support of criminal charges, the Ohio Department of Public Safety Ohio Investigative Unit received a complaint in October 2015 that Merckle was selling illegal moonshine at the local flea market known as “Reinersville Trader Days.”

Investigators then witnessed Merckle selling moonshine from his camper at Reinersville Trader Days. At this time, Merckle stated he owned Straitsville Special Moonshine, LLC in New Straitsville, Ohio, but that this moonshine is made “on the side” at his house.

In his plea agreement, Merckle agreed that he had sold oxycodone or hydrocodone on three occasions in 2016 and 2017. He also agreed that he had unlawfully sold moonshine on eight occasions from 2015 through 2017.

Some of the moonshine purchased by the undercover agents was contaminated with copper, which is consistent with home distilling. At least one batch had an abv percentage of 71.8.

The spirits were typically sold to the agents in glass quart jars and were not properly sealed or labeled as required by the Federal Alcohol Administration Act.

Merckle pleaded guilty to one count of distributing controlled substances and one count of selling distilled spirits in an improper container.

U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.

# # #

DAYTON – William Sparks, 66, of Dayton, was sentenced in U.S. District Court to 108 months in prison and 10 years of supervised release for traveling interstate with the intent of engaging in illicit sexual conduct with a minor.

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 Montgomery County Sheriff Phil Plummer announced the sentence imposed yesterday evening by U.S. District Judge Walter H. Rice.

According to the Statement of Facts in this case, Sparks traveled from Ohio to Kentucky in May 2017 to engage in sexual acts with a 14-year-old girl. Sparks met the victim when she was a young girl, as an acquaintance of the girl’s mother, and began a sexual relationship with the child.

Sparks cultivated a relationship with the minor and took her on trips to Indiana and Kentucky. Once in these states, he committed various sexual acts against her. He molested the girl repeatedly at various places and also provided her alcohol or promised her small amounts of cash if she was a “good girl.”

“The defendant’s role as a father figure to his victim makes this crime particularly egregious,” U.S. Attorney Glassman said.

Sparks pleaded guilty in November 2017.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Montgomery County Sheriff’s Office, and Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.

# # #

COLUMBUS, Ohio – The former Executive Director and Chief Financial Officer of the Coshocton Metropolitan Housing Authority (CMHA) has pleaded guilty in a federal public corruption case.

Gregory J. Darr, 64, of Coshocton, Ohio, pleaded guilty in U.S. District Court today to embezzling more than $431,000 from the United States Department of Housing and Urban Development (HUD).

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; Ohio Attorney General Mike DeWine; Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service; Coshocton County Sheriff Timothy L. Rogers, Richmond County (Georgia) Sheriff Richard Roundtree and Kimberly Cheatle, Special Agent in Charge, U.S. Secret Service, Atlanta; announced the plea entered into before Chief U.S. District Judge Edmund A. Sargus, Jr.

According to court documents, the Coshocton housing authority received federal HUD money each year to provide housing to low-income households. Money was provided for traditional public housing programs like Section 8 vouchers, as well as for certain “tenant participation activities” like a resident council – an organization of tenants that represents other public housing residents and puts on programming to support them.

Darr served as the Executive Director of the CMHA Resident Council, even though he had also been serving as the Executive Director and Chief Financial Officer of CMHA since 2001. Federal regulations prohibited him from serving in the resident council leadership capacity or from benefitting financially from the council.

“Over time, Darr consolidated power and authority over both CMHA and the resident council. Abuse of these positions of public trust enabled him to embezzle and convert federal funds and to conceal his crimes from others,” U.S. Attorney Glassman said.

Beginning in January 2012 and continuing through September 2017, Darr repeatedly embezzled money from both the CMHA and the Resident Council operating accounts for his own personal gain and for the gain of co-defendant Eric L. Blackwell, 54, of Coshocton.

Darr used the money for, among other things, restaurant bills, out-of-state expenses made in connection with real-estate ventures he co-owned with Blackwell, home improvements made to properties that he or Blackwell owned, and a marina slip and lot rental at Spend-a-Day Marina on Indian Lake, where he and Blackwell maintained a boat and mobile home.

While on the clock with CMHA, Darr routinely traveled to Georgia to manage his investment properties, all while being paid by CMHA to manage the agency’s day-to-day operations in Coshocton. He and Blackwell also improperly used CMHA office space and supplies to operate their joint business ventures.

In August 2017, Darr learned of a federal investigation into his unlawful activities when agents with the HUD Office of Inspector General executed search warrants at CMHA. He thereafter took steps to willfully obstruct and impede the investigation, by falsifying resident council meeting notes and attempting to conceal records relevant to the investigation.

Relatedly, Darr and Blackwell falsified claims to obtain monthly housing assistance payments on behalf of purported tenants who never actually resided in a housing project managed by the two defendants in Augusta, Ga.

Darr pleaded guilty to conspiring to embezzle money from the United States, a crime punishable by up to five years in prison. As part of his plea, Darr has agreed to pay restitution to HUD in the amount of $431,668.45.

Blackwell has also been charged with and has agreed to plead guilty to conspiring to embezzle money from the United States.

“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from them.”

“Greg Darr violated the public trust and stole from the people he was supposed to serve,” Ohio Attorney General Mike DeWine said. “My office’s Economic Crimes Unit, acting on information received from the Coshocton County Sheriff’s Office, launched an investigation that uncovered a pattern of theft and abuse at the Coshocton Metropolitan Housing Authority. I sincerely appreciate the hard work our local and federal partners put into pursuing the case and holding this man accountable. Together we will continue to root out public corruption.”

U.S. Attorney Glassman commended the investigation of this case by federal and local law enforcement in Ohio and Georgia, as well as Assistant United States Attorneys Noah R. Litton and J. Michael Marous, who are representing the United States in this case.

# # #

DAYTON – Kenneth Stopkotte, 53, of Unionville, Ind., was sentenced in U.S. District Court to 21 months in prison for using counterfeit money. He was also sentenced to an additional nine months in prison, to be served consecutively, for violating his terms of previous supervised release.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, and Dayton Police Chief Richard S. Biehl announced the sentence imposed today by U.S. District Judge Thomas M. Rose.

According to the Statement of Facts in this case, Stopkotte was on supervised release following a federal conviction for bank larceny, money laundering and access device fraud when he purchased more than 200 counterfeit $20 bills off a website on the “dark web.”

In April 2018, Stopkotte traveled from his home in Unionville, Ind. to Dayton to attend a Dayton Dragons minor league baseball game. He carried with him most of the counterfeit money and made numerous purchases, including his ticket, food and beverage and other concessions. He had previously used some of the fake $20 bills at a sporting event in Arizona.

He used 41 of the counterfeit $20 bills at the Dayton Dragons game, receiving genuine currency back on his purchases. As investigators approached him at the game, he attempted to hide 54 other bills under a stadium refrigerator. Law enforcement officials also discovered Stopkotte hid $166 in genuine currency in the sole of his shoe, and he had additional genuine currency elsewhere in his clothing.

Investigators later found an additional 136 fake $20 bills hidden in the cover of a boat at his residence in Indiana.

Stopkotte’s iPhone history revealed numerous searches regarding counterfeiting and research on the dark web.

Stopkotte pleaded guilty in this case in May 2018.

All of the above activity took place while Stopkotte was still on supervised release after a different federal conviction in the Middle District of Tennessee in 2014, in which the defendant stole more than $66,000 by taking donation checks out of the mailboxes of multiple churches. He was sentenced to 26 months in prison.

As part of the sentence imposed today, Stopkotte will forfeit 231 fake $20 bills, an iPhone and the nearly $495 in cash he had in his possession at the time of his arrest.

U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Dayton Police, as well as First Assistant United States Attorney Vipal J. Patel, who is representing the United States in this case.

# # #

DAYTON – David Kirkwood, 62, of Dayton, was sentenced in U.S. District Court today to 70 months in prison and five years of supervised release for running a pill mill in Dayton.

In August 2017, Kirkwood and his wife, Beverly Kirkwood, pleaded guilty to health care fraud. David Kirkwood also pleaded guilty to one count of unlawful drug trafficking.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG) Chicago Region and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the sentence imposed today by U.S. District Judge Walter H. Rice.

According to court documents, David Kirkwood owned and operated Kirkwood Family Practice in Dayton beginning in 1986.

David Kirkwood distributed nearly 4,000 units of Oxycodone outside the scope of medical practice and not for a legitimate medical purpose. All of these units were paid for by Medicare or Medicaid.

The doctor often used the same billing code for his customers regardless of the service performed, and would accept health care insurance payments for examinations that were not medically appropriate or sufficient for the billing codes submitted. Those bills were submitted on behalf of the practice and with the assistance of Beverly Kirkwood, who has been sentenced to six months in prison.

According to the indictment, David Kirkwood saw up to 100 patients per day, charging $100 per office visit.

“David Kirkwood’s method of distribution was the prescription pad, but make no mistake: he was a drug dealer,” said U.S. Attorney Glassman. “His prescriptions exposed his ‘patients’ to the risk of overdose and encouraged their addiction.”

“Our mission is to protect Ohio’s families, and we’ve made cracking down on pill mills a priority,” said Ohio Attorney General Mike DeWine. “David Kirkwood prescribed pills that never should have been prescribed and put his own interests above the health and safety of his patients.”

“Ensuring the appropriate use and prescribing of opioids is essential to protecting the health and safety of patients and the integrity of the Medicare and Medicaid programs”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Dr. Kirkwood’s actions were reckless and criminal and are reflective of a mindset that was polluted by greed. The OIG has made combatting the opioid crisis a top enforcement priority and we will continue to work with our law enforcement partners to investigate and hold accountable those who act illegally and put patients’ health and safety at risk.”

David and Beverly Kirkwood have agreed to pay restitution in the amount of nearly $160,000, which represents the loss to Medicare and Medicaid.

“More than three fourths of heroin addiction in the United States begins with prescription pills,” said U.S. Attorney Glassman. “This case is one example of our commitment to end opioid-related health-care fraud.”

As part of that commitment, an Assistant United States Attorney in the Southern District of Ohio has been designated as part of the Attorney General’s Opioid Fraud and Abuse Task Force.

U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Medicaid Fraud Control Unit, HHS-OIG and DEA, as well as Special Assistant United States Attorney Maritsa Flaherty and Assistant United States Attorney Timothy Oakley.

# # #

DAYTON – Sandy Green, of Fairborn, pleaded guilty in U.S. District Court to wire fraud as part of a scheme to defraud her previous employers.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Yvonne A. DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the plea entered into before U.S. District Judge Walter H. Rice.

According to court documents, Green was a bookkeeper at a Dayton business from May to November 2017. Green made fraudulent credit card returns without a corresponding legitimate purchase, causing company money to be paid into personal bank accounts belonging to Green and her family members.

Additionally, from April 2017 until March 2018, Green was the Chief Financial Officer for a second victim business in the Dayton area. Green again defrauded the company, this time transferring money from the business’s credit union into bank accounts controlled by Green and her family members. She attempted to disguise receiving the money by falsely listing other individuals and entities as the payee.

In total, Green embezzled more than $150,000 from the two companies.

Green pleaded guilty to two counts of wire fraud, which are each punishable by up to 20 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorneys Andrew J. Hunt and SaMee Harden, who are representing the United States in this case.

# # #

COLUMBUS, Ohio – Dashawn Anthony Starnes, 27, of Columbus, was sentenced in U.S. District Court to 204 months in prison for four charges related to armed bank robbery.

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), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Columbus Police Chief Kim Jacobs, Springfield Police Chief Stephen P. Moody and Baltimore Police Chief Michael W. Tussey  announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.

According to the statement of facts, Starnes acted as the getaway driver and/or participated in two armed robberies in the summer of 2015.

On June 30, 2015, Starnes drove Lawrence W. Bell, Jr., 32, of Columbus, to the Fifth Third Bank on Tuttle Road in Springfield, Ohio for the purpose of committing a robbery. On August 18, 2015, Starnes and Bell robbed the Peoples Bank on North Main Street in Baltimore, Ohio. Starnes brandished a pistol at tellers while committing the bank robbery.

Starnes pleaded guilty in March to two counts of bank robbery and two counts of possessing a firearm in furtherance of a crime of violence. Agents arrested Starnes on October 4, 2017. He has been in custody since his arrest.

Bell also robbed the First Service Credit Union on East Main Street in Reynoldsburg on June 17, 2015 and brandished a pistol at tellers. He was sentenced in May and also received a term of imprisonment of 17 years.

U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Timothy Prichard, who is representing the United States in this case. 

###

COLUMBUS, Ohio – The owner of a company that bought and sold renewable fuel and fuel credits was sentenced to serve 63 months in prison to be followed by a three year term of supervised release and $26,244,437.06 in restitution for his role in a conspiracy that generated over $47 million in fraudulent EPA renewable fuels credits and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel. 

The sentencing of defendant Gregory Schnabel was imposed by The Honorable Judge James L. Graham for the U.S. District Court for the Southern District of Ohio and was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; Special Agent in Charge Ryan L. Korner of the Internal Revenue Service (IRS) Criminal Investigation; Acting Special Agent in Charge John K. Gauthier, of the Environmental Protection Agency (EPA), criminal enforcement program in Ohio; and Special Agent in Charge Grant Mendenhall of the Federal Bureau of Investigation’s Indianapolis Division.

“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who seek to defraud the federal government and the public through unlawful renewable fuel credit schemes,” said Acting Assistant Attorney General Wood.  “This sentencing serves as a powerful deterrent to those who would consider participating in similar schemes in the future.  We applaud the work of the DOJ, EPA, and IRS law enforcement team that obtained justice in this case.”

“The outcome of this case is a great achievement,” said Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance.  “The defendant participated in a complex scheme to defraud his clients and the United States Government.  Through the great work of investigators from EPA and its law enforcement partners, that criminal activity is over and those involved have been prosecuted.” 

“Vigorously prosecuting cases like this one not only protect the public fisc, but are also crucial to safeguarding the integrity of national programs that benefit the environment,” said U.S. Attorney Glassman. “We will continue to investigate and prosecute those who defraud government programs, including environmental programs.”

“Today’s sentencing reinforces the message that there are serious consequences for those who manipulate the system for their own financial gain and defraud taxpayers and the United States government in doing so,” said FBI Indianapolis Special Agent in Charge Grant Mendenhall. “The FBI will continue to work with our law enforcement partners to uncover fraudulent schemes such as this.”

 “This investigation uncovered a complicated fraudulent fuel tax credit scheme that generated millions of dollars through a tangled web of financial lies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “We hope that today’s sentencing deters others who might be tempted to engage in similar illegal activity, which not only defrauded the U.S. Government and the American taxpayers, but also created an unfair competitive advantage over businesses that play by the rules. Investigations of this magnitude would not be successful without the collaborative efforts of the prosecutors and agents who investigated this case.”

According to information disclosed during the court proceedings, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.

Schnabel bought and sold fuel and RINs from several individuals who have already pleaded guilty for their roles in the scheme, including:

• Fred Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of Indiana to conspiracy, fraud, and false statements and were sentenced to 57 months’ and 30 months’ incarceration, respectively;
• Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and obstruction of justice and was sentenced to 60 months’ incarceration; and
• Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy and were sentenced to terms of incarceration ranging from 12 months to 63 months.

This case was prosecuted by Assistant U.S. Attorney J. Michael Marous for the Southern District of Ohio, and Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division.  The prosecution is the result of an investigation by the IRS, EPA-CID, and the FBI. 

# # #

The owner of a company that bought and sold renewable fuel and fuel credits was sentenced to serve 63 months in prison to be followed by a three year term of supervised release and $26,244,437.06 in restitution for his role in a conspiracy that generated over $47 million in fraudulent EPA renewable fuels credits and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel. 

The sentencing of defendant Gregory Schnabel was imposed by The Honorable Judge James L. Graham for the U.S. District Court for the Southern District of Ohio and was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; Special Agent in Charge Ryan L. Korner of the Internal Revenue Service (IRS) Criminal Investigation; Acting Special Agent in Charge John K. Gauthier, of the Environmental Protection Agency (EPA), criminal enforcement program in Ohio; and Special Agent in Charge Grant Mendenhall of the Federal Bureau of Investigation’s Indianapolis Division.

“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who seek to defraud the federal government and the public through unlawful renewable fuel credit schemes,” said Acting Assistant Attorney General Wood.  “This sentencing serves as a powerful deterrent to those who would consider participating in similar schemes in the future.  We applaud the work of the DOJ, EPA, and IRS law enforcement team that obtained justice in this case.”

“The outcome of this case is a great achievement,” said Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance.  “The defendant participated in a complex scheme to defraud his clients and the United States Government.  Through the great work of investigators from EPA and its law enforcement partners, that criminal activity is over and those involved have been prosecuted.” 

“Vigorously prosecuting cases like this one not only protect the public fisc, but are also crucial to safeguarding the integrity of national programs that benefit the environment,” said U.S. Attorney Glassman. “We will continue to investigate and prosecute those who defraud government programs, including environmental programs.”

“Today’s sentencing reinforces the message that there are serious consequences for those who manipulate the system for their own financial gain and defraud taxpayers and the United States government in doing so,” said FBI Indianapolis Special Agent in Charge Grant Mendenhall. “The FBI will continue to work with our law enforcement partners to uncover fraudulent schemes such as this.”

 “This investigation uncovered a complicated fraudulent fuel tax credit scheme that generated millions of dollars through a tangled web of financial lies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “We hope that today’s sentencing deters others who might be tempted to engage in similar illegal activity, which not only defrauded the U.S. Government and the American taxpayers, but also created an unfair competitive advantage over businesses that play by the rules. Investigations of this magnitude would not be successful without the collaborative efforts of the prosecutors and agents who investigated this case.”

According to information disclosed during the court proceedings, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.

Schnabel bought and sold fuel and RINs from several individuals who have already pleaded guilty for their roles in the scheme, including:

• Fred Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of Indiana to conspiracy, fraud, and false statements and were sentenced to 57 months’ and 30 months’ incarceration, respectively;
• Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and obstruction of justice and was sentenced to 60 months’ incarceration; and
• Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy and were sentenced to terms of incarceration ranging from 12 months to 63 months.

This case was prosecuted by Assistant U.S. Attorney J. Michael Marous for the Southern District of Ohio, and Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division.  The prosecution is the result of an investigation by the IRS, EPA-CID, and the FBI. 

CINCINNATI – Richard Jay Sharp, 55, formerly of Fairfield, Ohio, was sentenced in U.S. District Court to 120 months in prison followed by 10 years of supervised release for possession of 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 today by U.S. District Judge Timothy S. Black.

According to court documents, Sharp engaged in sexually graphic conversation with an undercover Australian Federal Police Officer and discussed sexual behavior the defendant was engaged in or sought to engage in with prepubescent girls.

Sharp directed the undercover officer to a chatroom that included several images of child pornography. For example, two images depicted an adult male sexually abusing a prepubescent female. In the images, the child victim had her mouth and hand on the naked adult male’s penis.

As part of the investigation, it was learned that the FBI also had an ongoing investigation on the defendant. Federal authorities had been alerted after Shaw returned a company-owned laptop and other employees discovered a number of images and file names that were of child pornography.

A review of those images from the National Center for Missing and Exploited Children (NCMEC) found 13 of the images recovered were from 13 different known child victims.

Sharp was arrested in November 2016 in Pittsburgh, where he had recently relocated. His personal items were left with his landlord, who contacted agents concerning two computers and seven thumb drives. The electronic devices contained more than 1,300 images and videos of child erotica.

Sharp pleaded guilty in August 2017 to two counts of possessing child pornography, one charged in this District and one transferred from the Western District of Pennsylvania.

U.S. Attorney Glassman commended the cooperative investigation by HSI, FBI and the Australian Federal Police, as well as Assistant United States Attorney Timothy D. Oakley, who is representing the United States in this case. 

###

COLUMBUS, Ohio – Six Ohio men who met on Craigslist have been charged with crimes related to producing child pornography and the repeated sexual abuse of at least two 10-year-old girls.

Four of the men were charged in a second superseding indictment returned by a federal grand jury yesterday. They include: William G. Weekley, 34, of Newark; Timothy F. Sullivan, 49, of Canal Winchester; Franklin Eugene Perry, 62, of Columbus; and Brian S. Perkins, 42, of Mt. Vernon.

A fifth defendant, Grant Michalski, 28, of Columbus, was charged by criminal complaint yesterday.

In a third case, a federal grand jury indicted Eric Zevely, 33, of Columbus. He was also indicted yesterday.

Court documents were unsealed today.

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, Ohio Attorney General Mike DeWine, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin, Westerville Police Chief Joseph Morbitzer and other members of the FBI Crimes Against Children Task Force announced the charges.

This investigation began when Ohio Bureau of Criminal Investigations Special Agent/FBI Task Force Officer Larry McCoy communicated undercover with Weekley online. From that initial investigation into Weekley, investigators were able to discover the additional defendants.

According to court documents, the defendants allegedly 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.

After making initial contact through Craigslist, Weekley communicated with each of the other defendants on an ongoing basis through text and various other apps, including Wickr.

It is alleged that Weekley, who was initially arrested in January and indicted in February, had regular access to a female child (Jane Doe), who was approximately 10 to 11 years old during the offenses detailed. Weekley sexually abused Jane Doe and created images and videos of the molestation, which he shared with others, including some of the co-defendants.

Images of the abuse – which occurred from at least October 2017 until January 2018 – depicted the young girl engaged in oral and anal intercourse as well as bestiality.

Weekley and Perry discussed sexually abusing Jane Doe together, and made plans for Perry to join Weekley in the sexual abuse of Jane Doe. Perry allegedly encouraged Weekley to continue abusing the victim and did eventually sexually abuse the victim together with Weekley.

Likewise, Perkins and Sullivan requested that Weekley bring Jane Doe to meet them for the purpose of sexually abusing Jane Doe, but it is not believed that Perkins or Sullivan actually met with Weekley.

Weekley and Michalski messaged on Craigslist about interests in sexual topics like “family, forced” and “K9 and more.”

Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist, including with Weekley. Investigators discovered Zevely allegedly sexually abused a different 10-year-old victim who was not Jane Doe. Zevely is also alleged to have engaged in communications about sexually abusing minors with both HSI and FBI undercover task force officers.

Weekley is charged with one count of attempted coercion of a minor (10 years to life in prison), three counts of production of child pornography (15 to 30 years in prison per count), three counts of distributing child pornography (five to 20 years in prison per count) and one count of possessing child pornography (up to 10 years in prison). He has remained in custody since his arrest in January.

Sullivan is charged with one count each of attempted coercion of a minor (10 years to life in prison), receipt of child pornography (five to 20 years in prison) and advertising for child pornography (15 to 30 years in prison).

Perry is charged with one count of attempted coercion of a minor (10 years to life in prison).

Perkins is charged with one count of attempted coercion of a minor (10 years to life in prison), one count of advertising for child pornography (15 to 30 years in prison) and one count of receipt of child pornography (five to 20 years in prison).

Zevely is charged with attempted coercion of a minor (10 years to life in prison), one count of producing child pornography (15 to 30 years in prison), one counts of distributing child pornography (five to 20 years in prison) and one count of possessing child pornography (up to 10 years in prison).

Michalski is currently charged with receiving (five to 20 years in prison) and possessing child pornography (up to 10 years in prison).   

U.S. Attorney Glassman commended the investigation of this case by the FBI Crimes Against Children Task Force, and Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the case.

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

# # #

COLUMBUS, Ohio – A jury has convicted Kevin R. Foster, 42, of Montclair, N.J., of 16 charges related to a fraud scheme. He was found guilty of wire fraud, money laundering, bankruptcy fraud, tax evasion and filing false tax returns.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Richard E. Zuckerman, Principal Deputy Assistant Attorney General, Tax Division, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the verdict reached after a trial that began Monday before Chief U.S. District Judge Edmund A. Sargus, Jr.

This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who collected approximately $9 million from investors under false pretenses to start and market the sports beverage “OXYwater” through their company, Imperial Integrative Health Research and Development (“Imperial”). The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges.

Foster, as the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations. Unbeknownst to Smith, Foster invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature.

Foster also defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.

Foster also stole millions of dollars from Smith and McKnight’s bank accounts in order to fund the operations of OXYwater as well as his own lavish lifestyle, including multiple luxury vehicles, a personal driver, designer watches, and season tickets to the New York Giants and New York Knicks.

Smith and McKnight agreed to invest in the company, not knowing that Foster was receiving a substantial commission based on their investments,that he served as an officer/controller of Imperial, and that he controlled an Imperial bank account.

In addition, Foster failed to report on his 2012 and 2013 tax returns the millions of dollars that he stole from Smith and McKnight. He also claimed millions of dollars in bogus deductions in order to further reduce his tax liability.

Foster was charged in an original, seven-count indictment in July 2016. A superseding indictment containing 10 counts was returned in November 2017. The final, second superseding indictment added six more charges in May 2018.

U.S. Attorney Glassman and Principal Deputy Assistant Attorney General Zuckerman commended the investigation of this case by the IRS Criminal Investigation and FBI, and Assistant United States Attorney Jessica H. Kim and Department of Justice Tax Division Trial Attorney Jason M. Scheff, who are prosecuting the case.

# # #

A federal jury in Columbus, Ohio has convicted Kevin R. Foster, 42, of Montclair, NJ, of 16 charges related to a fraud scheme. He was found guilty of wire fraud, money laundering, bankruptcy fraud, tax evasion and filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Ryan L. Korner for the Internal Revenue Service (IRS) Criminal Investigation; and Special Agent in Charge Angela L. Byers for the Federal Bureau of Investigation (FBI), Cincinnati Division.

This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who, according to court documents, collected approximately $9 million from investors under false pretenses to start and market the sports beverage OXYwater through their company, Imperial Integrative Health Research and Development (Imperial). The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges.

According to court documents and evidence presented at trial, Foster, as the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith, a/k/a Ne-Yo, induced Smith to invest $2 million into OXYwater under false representations. Unbeknownst to Smith, Foster invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature.

Foster also defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.

Foster also stole millions of dollars from Smith and McKnight’s bank accounts in order to fund the operations of OXYwater as well as his own lavish lifestyle, including multiple luxury vehicles, a personal driver, designer watches, and season tickets to the New York Giants and New York Knicks.

Smith and McKnight agreed to invest in the company, not knowing that Foster was receiving a substantial commission based on their investments, that he served as an officer/controller of Imperial and that he controlled an Imperial bank account.

In addition, Foster failed to report on his 2012 and 2013 tax returns the millions of dollars that he stole from Smith and McKnight. He also claimed millions of dollars in bogus deductions in order to further reduce his tax liability.

Foster was charged in an original, seven-count indictment in July 2016. A superseding indictment containing 10 counts was returned in November 2017. The final, second superseding indictment added six more charges in May 2018.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, and thanked Assistant U.S. Attorney Jessica H. Kim and Department of Justice Tax Division Trial Attorney Jason M. Scheff, who are prosecuting the case. 

COLUMBUS, Ohio – Chris R. Cook, 45, of Lancaster, Ohio, was arrested this morning on charges related to distributing methamphetamine.

He was charged  by criminal complaint with possessing and conspiring to possess with the intent to distribute in excess of 50 grams of the drug.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Lancaster Police Chief Adam Pillar and members of the Fairfield Hocking Major Crimes Unit announced the charges.

According to the affidavit filed in support of the complaint, law enforcement received several citizen complaints regarding suspected drug trafficking at Cook’s residence on S. Cedar Avenue and his business on Welsh Avenue in Lancaster.

Investigators established surveillance on the properties and observed activity consistent with drug trafficking.

During a coordinated traffic stop, Fairfield County Sheriff’s Deputies stopped a vehicle that had been present at residence on S. Cedar Avenue and discovered six grams of crystal meth. Law enforcement officials also conducted several controlled purchases of meth, both at Cook’s residence and business.

Cook had entrances to his residence barricaded as well as surveillance cameras on the property. When he was arrested, agents discovered him in possession of a bullet-proof vest and additional methamphetamine.

Cook is scheduled to appear in federal court today at 1:30pm before U.S. Magistrate Judge Kimberly A. Jolson.

U.S. Attorney Glassman commended the investigation of this case by law enforcement and Assistant United States Attorney Timothy Prichard, who is prosecuting the case.

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

# # #

COLUMBUS, Ohio – A second defendant has pleaded guilty to unlawfully transporting illegal aliens, primarily Mexican citizens, within the United States.

Robert G. Smith, 58, of Natalia, Texas, pleaded guilty today, and his cousin, Bromley D. Hackney, 57, of Ashville, Ohio, pleaded guilty in January.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Ohio State Highway Patrol Superintendent Col. Paul A. Pride and officials with U.S. Border Patrol announced the plea entered into before U.S. District Judge Michael H. Watson.

According to an affidavit filed in support of the Criminal Complaint charging Smith, in October 2016, HSI agents received information from the Ohio State Highway Patrol regarding the suspected unlawful transportation of aliens. The source alleged that Hackney was using a semi-truck to move undocumented aliens within the United States for profit.

In December 2016, Hackney was stopped at a Border Patrol checkpoint near Laredo, Texas and agents found four undocumented aliens attempting to conceal themselves in hidden compartments in the cabin of the freight box truck. All of the individuals were taken into custody and later released.

Hackney agreed to be interviewed by investigators in Ohio in March 2017 and said he “knew that this day would come” and was going to go to a Border Patrol station soon to inquire about a possible investigation involving him. He admitted that he unlawfully transported aliens, which he and Smith began to do during the year 2011.

Smith, who was interviewed in June 2017, told investigators he would arrange transports, which he did approximately four times per week. He earned at least $2,000 per week coordinating the transactions.

Smith unlawfully transported aliens at least 72 times from 2011 through 2016 and transported four individuals each time. At first, he charged $800 per person and after the first two years increased the cost to $1,000 per person. The total amount of proceeds from the offense was nearly $269,000.

Transportation of an alien within the United States is a federal crime punishable by up to five years in prison.

U.S. Attorney Glassman commended the investigation of this case by the HSI, Ohio State Highway Patrol and U.S. Border Patrol, as well as Assistant United States Attorney Timothy D. Prichard, who is the District’s Immigration and Border Security Coordinator and who is representing the United States in this case.

# # #

DAYTON – Seven defendants involved in a conspiracy to smuggle methamphetamine into a state prison, including a former corrections officer, have pleaded guilty to conspiracy and related charges in U.S. District Court.  

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, Ohio Attorney General Mike DeWine, Col. Paul A. Pride, Superintendent, Ohio State Highway Patrol, Gary Mohr, Director, Ohio Department of Rehabilitation and Correction and members of the Warren County Drug Task Force announced the pleas entered into before U.S. District Judge Walter H. Rice.

The defendants were charged in September 2017 in a three-count indictment. 

James Barlage, Jr., 31, of Chillicothe, a former corrections officer at Chillicothe Correctional Institution, and Anthony Scott Blankenship, 32, of Columbus, each pleaded guilty to possession with intent to distribute methamphetamine.  Mario Evans, 40, formerly of Dayton, Edward E. Bellman, 45, formerly of Miamisburg, and Moses M. Stevens, 53, formerly of Xenia, who were inmates at CCI, and Jamey L. Naegele, 47, of Brookville, each pleaded guilty to conspiring to distribute methamphetamine. Jon Christopher Birt, 50, of Dayton, pleaded guilty to possession with intent to distribute and distribution of 50 grams or more of methamphetamine in a separate case.  

According to court documents, the defendants conspired with each other to smuggle methamphetamine into CCI.   As part of the conspiracy, the defendants used an unauthorized cellular telephone from within the prison to communicate regarding the payment and transportation of the methamphetamine.  On July 14, 2017, Barlage was stopped by law enforcement while in possession of approximately 13 grams of methamphetamine intended for delivery into CCI.  On July 18, 2017, Blankenship was stopped by law enforcement while in possession of approximately 34 grams of methamphetamine.    

U.S. Attorney Glassman commended the investigation of this case by the FBI, FBI, Ohio Bureau of Criminal Investigation (BCI), Ohio Department of Rehabilitation and Correction, Ohio State Highway Patrol and Warren County Drug Task Force, as well as Assistant United States Attorneys Dominick S. Gerace, Amy M. Smith, and Elizabeth R. Rabe, who are prosecuting the case.

# # #

CINCINNATI – Rodney D. Cydrus, 48, formerly of Chillicothe, was sentenced in U.S. District Court to 36 months in federal prison for mailing threatening letters to federal officials. Cydrus was an inmate at Lebanon Correctional Institution at the time of the offense.

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 Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Michael R. Barrett.

According to court documents, on five separate occasions in January 2017, Cydrus mailed letters threatening to injure numerous government officials, including the President of the United States, federal judges, the FBI and the Federal Public Defender’s Office. Four of the letters were addressed to the FBI and one letter was addressed to the Federal Public Defender’s Office.

For example, one letter to the FBI states “You are one dead motherfucker…As soon as I get out I’m going to get everybody I can in your office…Die Die Die…I promise my word I’ll get at least 30 of you before you kill me.” Cydrus further stated he wanted to “go out with a bang” by killing or kidnapping a federal agent.

As part of the threats, Cydrus included a powdered substance (namely his own medication) in the at least one letter.

“Cydrus caused a HAZMAT team to respond twice, requiring the employees who opened the letters to be quarantined,” U.S. Attorney Glassman said. “The federal officials whom Cydrus targeted have hard enough jobs as it is. Disrupting operations and creating an atmosphere of fear is a serious offense, and it’s important to deter this kind of intimidation campaign.”

Cydrus was indicted by a federal grand jury in February 2017 and pleaded guilty on January 18 to one count of mailing threatening communications.

U.S. Attorney Glassman commended the investigation of this case by the FBI and U.S. Secret Service, as well as Assistant United States Attorney Timothy S. Mangan, who represented the United States in the case.

# # #

 

CINCINNATI – Mark Brookbank, 54, of Cincinnati, was sentenced in U.S. District Court to 262 months in prison for attempting to create child pornography through the photographs of a five year old.

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 today by U.S. District Judge Michael R. Barrett.

According to court documents, from at least June 2017 through December 2017, Brookbank attempted to create child pornography by photographing his five-year-old relative. For example, Brookbank took a digital photograph of himself wearing a pair of children’s underwear and touching his exposed penis to the head of the relative while she slept. Brookbank also took photographs of the five year old while he touched her genital area.

Brookbank uploaded the photographs to a foreign file-sharing website trafficked by child pornographers and named his photo album “Toy.”

After learning that law enforcement was pursuing him, Brookbank destroyed some of the child pornography in his possession.

Brookbank pleaded guilty in April to one count of attempting to produce child pornography.

“The defendant abused his position of trust in his family to prey upon a vulnerable child,” U.S. Attorney Glassman said. “The public needs to be protected from such a predator. His heinous crimes warrant the sentence he received.” 

“Today’s sentencing should serve as a stern warning about the consequences awaiting child predators who produce and distribute child pornography,” said Steve Francis, special agent in charge of HSI for Michigan and Ohio. “Protecting our children from predators remains an HSI priority, and we will continue to work closely with our law enforcement partners to identify, arrest and bring these criminals to justice.”

U.S. Attorney Glassman commended the cooperative investigation by HSI Special Agent Jason Kearns, as well as Assistant United States Attorney Megan Gaffney, who is representing the United States in this case. 

###

CINCINNATI – A federal grand jury has charged 12 individuals with conspiring in a racketeering enterprise to defraud individuals through their moving companies located throughout the United States, including in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 900 customers have been identified as victims of the scheme thus far.

Five defendants were arrested today. The indictment was returned July 25 and unsealed today.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Thomas J. Ullom, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT) and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.

According to the indictment, the defendants operated and worked through a number of affiliated moving companies, which include:

First National Moving and Storage

Public Moving and Storage

Flagship Van Lines

Public Moving Services

Independent Van Lines

Smart Relocation Solutions

JBR Underground

Trident Auto Shipping

National Relocation Van Lines

Unified Van Lines

National Relocation Solutions

United National Moving and Storage

Presidential Moving Services

US Relocation Systems

The co-conspirators owned, operated and worked as employees, members and associates of the affiliated moving companies. The moving companies were operated principally out of a business address in Hollywood, Fla. and had a warehouse in West Chester, Ohio.

It is alleged that the defendants executed a scheme between April 2013 through July 2018 to enrich themselves by stealing from customers who hired their moving companies to move their household goods.

To execute the alleged scheme, the defendants allegedly lied to customers about how long their moving companies had been in business, claiming many years of experience for companies that had been created just a few months prior. The defendants also allegedly created fake online reviews, praising the work of their moving companies. 

When potential customers contacted the defendants, the defendants would allegedly provide customers with low binding estimates to do their move, promising to beat their competitor’s prices.  After the customers agreed to hire the moving companies, employees of the moving companies would allegedly load the customers’ goods onto the truck and then bump the price of the move.  Under federal regulations, in a binding estimate a customer and the motor carrier must both agree in writing to a charge for services prior to the start of any work. When an estimate is binding, USDOT prevents interstate carriers from raising the price of the move after loading customers’ items.

The defendants and the moving companies would allegedly refuse to give back the household goods until customers paid the inflated prices. If customers did not pay the inflated prices on the moves, it is alleged, the defendants would, in some cases, steal the customers’ household goods, never delivering them. 

For example, in July 2016, First National Moving and Storage loaded a customer’s goods to transport from Round Rock, Texas to Columbus, Ohio. After loading the goods, the company increased the cost of the move and told the customer that she had to agree to the higher price or the customer’s goods would not be returned to her. The customer called the company to complain, and, during one phone call, the customer was told by the company that her items would be auctioned if she did not pay the higher price.

After customers complained to federal regulators and others, it is alleged that the defendants would shut down the latest iteration of the moving company, and open a new moving company. In doing so, the defendants allegedly lied to federal regulators and hid the identities of the true owners in order to receive licenses to operate. The defendants and other employees of the moving companies also used aliases with customers and regulators.

The defendants are charged with conspiring to conduct the affairs of the moving companies through a pattern of racketeering activity, consisting of multiple acts of wire fraud, theft of an interstate shipment by carrier, Hobbs Act extortion and identification fraud.

Those arrested today include:

Name

Also Known As

Age

Residence

Andrey Shuklin

 

31

Miami, Fla.

Phyllis Ricci Quincoces

Faith Ashford, Grace Rubestello, Phyllis Ricci, Phyllis Ann

51

Hollywood, Fla.

Vladimir Pestereanu

Vova

28

Sunny Isles Beach, Fla.

Roman Iakovlev

 

31

Charlotte, N.C.

Jessica Martin

Emma Ricci, Mary Austin

28

Tamarac, Fla.

 

“The arrests and actions taken today stemming from a criminal investigation conducted by the U.S. Department of Transportation Office of Inspector General (DOT-OIG) demonstrate our commitment to detecting and prosecuting fraudulent household goods movers who take advantage of unsuspecting customers by holding their personal belongings hostage for ransom,” said Thomas J. Ullom, DOT-OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial partners, as well as Federal Motor Carrier Safety Administration officials, we will continue our vigorous efforts to ensure that commercial household goods movers adhere to Federal laws and regulations designed to protect the public.”

 

U.S. Attorney Glassman commended the investigation of this case by the USDOT and the assistance of the FBI, as well as Assistant United States Attorneys Megan Gaffney and Matthew Singer, who are prosecuting the case.

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

If you believe you are a victim of this fraudulent activity, please call the Victim Hotline at 1-800-424-9071 or email hotline@oig.dot.gov.

# # #

DAYTON – The final two of eight defendants were sentenced in U.S. District Court today for their roles in pharmacy robberies in Fairfield, Middletown, Franklin, Hamilton, Westerville, Trotwood, Dayton, Oakwood, Kettering, Beavercreek, Moraine, Vandalia, Union Township and Cincinnati.

Tiwonne Montgomery, 22, of Dayton, was sentenced to 51 months in prison and Martez Henderson, 21, of Dayton, was sentenced to 14 months in prison. Montgomery’s sentence will be served concurrently with a state sentence for a separate pharmacy robbery.

Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati and Middletown Police Chief Rodney Muterspaw announced the sentences handed down today by Senior U.S. District Judge Thomas M. Rose.

In May 2017, a federal grand jury returned indictments charging individuals with robbing two Middletown pharmacies and stealing prescription drugs including morphine, oxycodone and hydrocodone for the purpose of selling the drugs on the street.

The grand jury charged two Dayton men, Calvin Cavonte Tribble and Savon Anthony Davis, with attempted robbery of a pharmacy in Middletown on April 18, 2017 and robbing the pharmacy on April 19. Tribble and Davis were each sentenced to 16 months in prison.

In July, a 10-count superseding indictment added six defendants who also allegedly conspired to rob pharmacies between March and June 2017 in Fairfield, Middletown, Franklin, Hamilton, Westerville, Trotwood, Dayton, Oakwood, Kettering, Beavercreek, Moraine, Vandalia, Union Township and Cincinnati.

It was part of the alleged conspiracy that defendants would approach the pharmacy counter at CVS, Walgreens, Rite Aid and Best Pharmacy locations as if to turn in a prescription to be filled. In actuality, the slip of paper included a note that this was an armed robbery and the pharmacist would be harmed if they did not comply. The note demanded pharmacy employees to fill two bags with a list of controlled substances identified by name, amount and prescription dosage.

Those charged in the superseding indictment include Henderson; Montgomery; Kenneth Evans, Jr., who was sentenced to 42 months in prison; Brandon Freeman, who was sentenced to 27 months in prison; David Harris, who was sentenced to 20 months in prison and Jamar Warren, who was sentenced to 54 months in prison.

U.S. Attorney Glassman commended the cooperative investigation of this case by the Middletown Police and the FBI, as well as Assistant U.S. Attorneys Amy M. Smith and Brent Tabacchi, who are representing the United States in the case.

###

DAYTON – Robert Steven Jones, 30, of Anna, Ohio, was sentenced to life (plus 10 years) in prison for sexually exploiting minors, including an infant, a seven-year-old girl and numerous teenage girls.

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 imposed today by Senior U.S. District Judge Thomas M. Rose.

According to court documents, while living in Illinois in 2013, Jones recorded himself masturbating and committing other sexual acts on and with a seven-month-old infant. The nearly five-minute video also depicts Jones engaging in acts of physical violence with the baby – including slapping, punching, shaking, restraining and suffocating the infant.

In the same week, Jones recorded a second video, this one approximately 10 minutes in length. This video further depicts Jones holding the baby up to the camera while smothering and choking the infant to such an extent that the baby slowly became limp and turned a blueish color, apparently unconscious.

In addition to making comments such as “You want to see a baby pass the f*** out?,” and “That’s a dead baby, that’s a dead f****** baby, yeah, dead f****** baby,” Jones struck and threw the baby. The baby survived.

In June 2014, Jones moved to Ohio, residing in Sidney, Piqua and later Anna.

In August 2015, law enforcement officers discovered the videos on Jones’s cell phone while executing a search warrant at his home.

In addition to the charged offenses, Jones admitted to molesting a seven-year-old female at his residence in Ohio on at least two occasions in July 2015, and to producing two videos of the conduct on his cell phone.

Additionally, Jones met with and/or communicated with numerous other victims, aged 13 years to 16 years, for the purpose of engaging in prohibited sexual acts and creating child pornography. This included victims living in other states such as New York and Tennessee.

“Jones’s crimes are among the most horrific, abhorrent, and disturbing crimes that a human being could commit,” U.S. Attorney Glassman said. “The United States does not take lightly advocating for life in prison, but Jones’s conduct and risk of recidivism warrant that sentence.”

Jones was arrested on November 4, 2015 by criminal complaint, and he has remained in custody since. He was indicted by a federal grand jury in February 2016.

Jones pleaded guilty in September 2017 to eight counts of production of child pornography, two counts of coercion and enticement of a minor, and one count of commission of a felony offense involving a minor while being registered as a sex offender. This last count carries with it a statutorily mandated 10-year sentence, which must be imposed consecutive to any other sentence.

Prior to his guilty pleas, Jones sought unsuccessfully to suppress all of the evidence against him due to the FBI’s use of a “Network Investigative Technique,” which had initially led investigators to Jones as a user of a child pornography website on the “dark web.” As a result of that initial lead and subsequent search warrants, FBI agents uncovered evidence of additional crimes, including the hands-on offenses to which Jones pleaded guilty. 

Since pleading guilty, Jones has attempted to withdraw his guilty plea on two occasions, both of which were denied by the court.

This case resulted from the national FBI investigation “Operation Pacifier” which involved the takedown of a “dark web” site dedicated to child pornography. Agents uncovered IP addresses and other information that helped locate and identify users of the child pornography website. Investigators sent more than 1,000 leads to FBI field offices in every state in the country and thousands more to oversees partners.

As a result of the investigation, at least 350 U.S.-based individuals have been arrested, 25 producers of child pornography have been prosecuted, 51 alleged hands-on abusers have been prosecuted, and 55 American children who were subjected to sexual abuse have been successfully identified or rescued.

“Let’s be clear. Jones was apprehended and brought to justice because the FBI, with court authorization, was able to use the same kind of advanced technology to investigate the offense that criminals use to commit their crimes or evade detection.” Glassman said. “When we debate the impact of law enforcement investigations on internet privacy, these are the stakes.”

U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as First Assistant United States Attorney Vipal J. Patel and Assistant United States Attorney Amy M. Smith, who are prosecuting the case.

# # #

CINCINNATI – Floyd Grant Smitty, 30, of Clarksville, Ohio, was sentenced in U.S. District Court to 84 months in prison for possessing both child pornography and a firearm as a convicted felon.

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 afternoon by U.S. District Judge Susan J. Dlott.

According to court documents, Smitty used the Kik messenger app to chat with an individual who had advertised that he was a “dad of a 12yo daughter, love talking to other dads/parents who are playful w. theirs mmmmm.” That individual was actually an undercover officer.

In December 2016, on at least two occasions, Smitty sent the undercover officer videos depicting child pornography. One video included, in part, a female child less than six years old performing oral sex on an adult male.

Smitty was arrested on January 20, 2017. Investigators discovered at that time that Smitty possessed a semiautomatic rifle capable of accepting a large capacity magazine. He possessed the gun after being convicted of a felony crime, namely, aggravated trafficking of methamphetamine.

Smitty pleaded guilty in September 2017 to one count of possessing child pornography and one count of possessing a firearm as a convicted felon.

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

###

DAYTON – A jury has convicted Jason Rosales, 44, of Dayton, with two crimes related to methamphetamine. Rosales was found guilty of conspiracy to possess and attempt to possess with intent to distribute more than 500 grams of the drug on Valentine’s Day of last year.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), and Clark County Prosecutor Andrew D. Wilson announced the verdict reached today at the conclusion of an eight-day trial before U.S. District Judge Walter H. Rice.

According to court documents and testimony, Rosales conspired to and attempted to possess at least 4,427 grams of 100 percent pure “crystal meth” or “ice.”

The MOWIN Task Force in Kansas City had interdicted a courier at a Greyhound Bus Station on February 13, 2017 with 10 bundles of crystal meth hidden in a duffle bag. 

The courier had been en route to deliver the drugs in Springfield, Ohio, and ultimately the DEA orchestrated a controlled delivery to  Rosales in Dayton. 

Rosales was charged by an indictment in February 2017. He was arrested on February 16, 2017 and has remained in custody since.

U.S. Attorney Glassman commended the cooperative investigation by the DEA and Kansas City law enforcement, as well as Assistant United States Attorneys Amy M. Smith and Sheila G. Lafferty and Special Assistant United States Attorney Ryan Saunders from the Clark County Prosecutor’s Office, who are representing the United States in this case. 

###

COLUMBUS, Ohio – Three members of a family from Mason, Ohio, have pleaded guilty to conspiring to launder nearly $3 million in proceeds from two fraudulently purchased life-insurance policies, which were taken out on another relative.

Patricia Stevenson, 57, and her daughter Candace G. Stevenson, 30, pleaded guilty in U.S. District Court here today to one count of money laundering conspiracy. Mitch G. Stevenson, 53, pleaded guilty on June 28.

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 pleas entered before Chief U.S. District Judge Edmund A. Sargus Jr.

According to court documents, in 2009, Mitch Stevenson bought life insurance policies on a relative. The life-insurance applications claimed the relative was healthy, weighed 170 pounds and had an annual income of $133,000. In fact, the relative was ill, weighed nearly 400 pounds and was unemployed. Mr. Stevenson knew the applications were fraudulent at the time they were submitted. When the relative died, Candace and Patricia Stevenson, who were the beneficiaries of the policies, collected checks from the insurance company totaling $2,908,326.90. At Mitch Stevenson’s direction, Candace and Patricia Stevenson opened eight different bank accounts in an attempt to conceal the source of the funds.

“The defendants engaged in a complex sequence of transactions designed to conceal and disguise the ownership of the proceeds of the life-insurance fraud,” Glassman said.

Court documents also say the family members used the proceeds to buy a 2012 Bentley GT Convertible for approximately $247,000 and used approximately $284,000 as a down payment on a land contract on a home in Mason, Ohio. Other transactions included approximately $16,000 to World of Decor and nearly $33,000 to Facet Jewelry.

“The conduct detailed in this case is egregious. They went to great lengths to conceal the proceeds they received from the fraudulent life insurance policies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.”

A federal grand jury indicted the three in June 2017. Money laundering conspiracy is a crime punishable by up to 20 years in prison. Judge Sargus will schedule a date for sentencing.

As part of the plea, the defendants have agreed to pay the $2.9 million to the victim life insurance company. They have also agreed to forfeit to the United States the home in Mason, Ohio, that was purchased with the proceeds of the fraud.

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

# # #

DAYTON –  Attorney General Jeff Sessions and Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, today announced Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.

As part of Operation S.O.S., the Department will launch an enforcement surge in ten districts with some of the highest drug overdose death rates, including the Southern District of Ohio.

Each participating United States Attorney’s Office (USAO) chose a specific county in which to prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids, regardless of drug quantity. The surge will involve a coordinated DEA Special Operations Division operation to insure that leads from street-level cases are used to identify larger scale distributors. Operation S.O.S. was inspired by a promising initiative of the United States Attorney’s Office in the Middle District of Florida involving Manatee County, Florida.

"When it comes to synthetic opioids, there is no such thing as a small case," Attorney General Sessions said. "In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal--that's not even enough to cover up Lincoln's face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. This new strategy—and the new prosecutors who will help carry it out—will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs."

“We recommended including Montgomery County in this nationwide effort because of the way the community has stepped up enforcement, treatment and prevention efforts to battle the opioid epidemic since overdose deaths began their rapid climb in 2015,” U.S. Attorney Glassman said. “This focus will boost our efforts to dismantle the organizations that bring synthetic opioids into the area, track down the organization’s leaders and prosecute them for their crimes.”

Glassman noted that Montgomery County Coroner’s Office has preliminary numbers documenting 128 overdose deaths countywide so far in 2018. The coroner’s office reported a record 566 overdose deaths in 2017, most due to opioids including fentanyl. In 2016, the coroner recorded 349 overdose deaths in Montgomery County.

In addition, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with drug-related prosecutions.

The ten participating districts are:

Northern District of Ohio

Southern District of Ohio

Eastern District of Tennessee

Eastern District of Kentucky

Southern District of West Virginia

Northern District of West Virginia

District of Maine

Eastern District of California

Western District of Pennsylvania

District of New Hampshire

 

# # #

 

DAYTON – A federal indictment unsealed today charges seven people with engaging in a methamphetamine trafficking conspiracy in the Miami Valley and across southern and central Ohio.

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 charges contained in the indictment.

The indictment charges the following people with conspiracy to possess with intent to distribute methamphetamine, a crime punishable by a sentence of at least ten years and up to life in prison:

* Salvador Ramirez, aka “Listo”, 23, West Chester

* Tamara McQueen, 21, Hamilton

* Luiz Roberto Diaz-Magana, 29, Queretaro, Mexico                                 

* Jesus Garcia, aka “Jesse Garcia”, 49, West Chester

* Joshua L. Leach, 34, Plain City - Fugitive

* Brandi Danyell Loy, aka Brandi Richey, 34, Plain City - Fugitive

* Takeea Trammell, 41, Dayton

Anyone with information on Leach or Loy is asked to call the Dayton DEA tipline, 937 903-5860. The six-count indictment also charges the defendants with manufacturing and distributing methamphetamine and money laundering. The indictment also seeks forfeiture of all proceeds of the crimes.

“This ongoing investigation by DEA and the members of their task force has already led to the pleas or convictions of seven people dealing drugs in our region,” U.S. Attorney Glassman said, noting that so far agents have seized more than 140 pounds of meth, seven kilograms of fentanyl, two kilograms of heroin and more than $130,000 in cash.

Glassman also commended Assistant U.S. Attorney Brent Tabacchi, who is representing the United States in this case, and the DEA agents and task force officers who are investigating the case.

Agencies investigating the case include the Ohio State Highway Patrol, the Warren County Sheriff’s Office and the police departments in Monroe and Middletown.

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

# # #

COLUMBUS, Ohio – Edward I. Campbell, 41, of Reynoldsburg, Ohio, was sentenced in U.S. District Court today to 60 months in prison for charges related to a $1.4 million investment fraud scheme that defrauded at least 44 individuals.

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 Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation announced the sentence handed down today by U.S. District Judge Michael H. Watson.

According to court documents, between July 2011 and June 2013, Campbell operated an investment business known as Rosewood Consulting LLC in Baltimore, Ohio. Campbell told victims their contributions would be invested through Rosewood Consulting into two types of investment programs: historical bonds issued by China and the exchange of Bougainville Kina – illegal currency from the autonomous region of Bougainville, Papua New Guinea – into U.S. dollars.

Campbell represented that he had access to a trading platform in which he could monetize gold-backed bonds issued by China in 1913 for a very high return. Campbell offered to sell the historical bonds to investors for $10,000 to $15,000 each for a promised return on investment of anywhere from $50,000 to upwards of possibly $10 million per bond within 10 to 60 days.

Campbell also offered to exchange the Bougainville Kina, which he allegedly possessed, into U.S. dollars if the investors hired him for a $100,000 fee. The investors were supposed to receive a return of $1.5 million or more within 10 to 120 days.

Campbell told investors that their investments were refundable if the returns were not paid within the provided timeframes. In addition, he told investors that he had prior success with these investment programs, was a former Navy SEAL, once worked in an investment house, had traveled internationally closing deals and he had nearly 600 investors.

The investigation revealed that none of the investors received the returns on their investments that Campbell had promised. Only a few of the 44 investors have been refunded the money they paid for his services and those refunds were paid for with other investors’ funds.

Campbell usually depleted the funds he received from investors shortly after receiving them, by using the funds for personal expenses, including the purchase of two automobiles and expenses at hotels and restaurants.

To appease investors regarding delays in paying them the returns on their investments, Campbell represented that their money was being held up by various United States agencies and or catastrophes to his family or other individuals who were important for these deals to be completed.

For example, Campbell told investors his niece was a student and had been shot at Sandy Hook Elementary School, but later changed his story when the names of the school-shooting victims were released to the public. He also fabricated that his attorney’s daughter had been in a motorcycle accident.

Campbell pleaded guilty on September 21, 2017 to charges of money laundering and wire fraud. As part of his plea agreement, Campbell agreed to pay $1,408,854 in restitution.

“Campbell blatantly and repeatedly lied to and violated the trust placed in him by the individuals who invested with him,” U.S. Attorney Glassman said. “Besides falsely representing experience and expertise, he told contemptable lies about a tragic incident.”

“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”

U.S. Attorney Glassman commended the investigation of this case by the FBI and IRS, as well as Assistant United States Attorney Jessica H. Kim, who represented the United States in this case.

# # #

COLUMBUS, Ohio – Aaron Travis Daniels, 21, aka Harun Muhammad, aka Abu Yusef of Columbus was sentenced in U.S. District Court to 80 months in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The court also granted the government’s request to place Daniels under court supervision for the rest of his life.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and agencies participating in the Columbus Joint Terrorism Task Force (JTTF) announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus Jr.

Documents filed with the court say Daniels met with an ISIS recruiter in December 2015 and sent funds to ISIS in order to “show his worth” to an ISIS recruiter. JTTF agents arrested Daniels on November 7, 2016, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on November 10, 2016. Daniels pleaded guilty on July 6, 2017 to one count of attempting to provide material support to ISIS. Daniels has been in custody since his arrest.

“One of a terrorist organization’s most valuable and dangerous assets is having control over a person willing to support and advance terrorism in the United States,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”

Chief Judge Sargus also granted the government’s requests that, during Daniels’ supervised release, he receives ongoing mental health treatment, is prohibited from using alcohol or controlled substances, cannot travel internationally, and has no access to the internet without court approval. The court also ordered that Daniels be subject to search at any time without probable cause while on supervised release.

The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.

Assistant U.S. Attorney Jessica W. Knight and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section represented the United States in this case. Former Special Assistant U.S. Attorney Joseph Gibson also represented the United States in this case when he was with Franklin County Prosecutor Ron O’Brien’s Office.

# # #

DAYTON –Aaron Pauly, 44, of St. Paris, Ohio, pleaded guilty today to producing child pornography by coercing and threatening juvenile females to send him sexually explicit images of themselves.

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 plea entered today before U.S. District Judge Thomas M. Rose.

According to court documents, Pauly created multiple fake accounts on social messenger services, using false names and photographs of others, including a family member, as his profile pictures.  Pauly requested and received nude images and videos from more than 50 juvenile females between October 2014 and August 2017. Pauly located information about the victims’ family members on social media accounts and used this information to coerce the victims. The coercion included threats to tell the victims’ parents and/or schools about the pictures.

One of the victims told her family about the contact and the family reported the activity to law enforcement. A federal grand jury indicted Pauly on March 13, 2018.

“Sexual predators will get information about a victim’s family and use it to pressure the victim into giving the predator what he wants,” U.S. Attorney Glassman said. “Families should report any inappropriate contact their children receive to law enforcement, and we will continue to prosecute those who exploit our youngest citizens and their families.”

Judge Rose scheduled Pauly’s sentencing for October 12, 2018. Production of child pornography is punishable by at least 15 and up to 30 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Amy M. Smith, who is prosecuting the case.

# # #

COLUMBUS, Ohio – Darnell A. Reeves, 32, of Delaware, Ohio, was arrested today and charged federally with distributing fentanyl that caused at least one overdose death.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Delaware County Prosecutor Carol O’Brien, Delaware County Sheriff Russell L. Martin and other members of the Delaware County Drug Task Force announced the charges.

According to the complaint, investigators traced fentanyl, heroin and crack cocaine back to Reeves (also known as Bookie), after they responded to the scene of an overdose death in Ostrander, Ohio on February 28. The victim was found on a couch in a shed, slumped forward with a used syringe under him.

Reeves also allegedly provided the heroin to a second victim that caused two nonfatal overdoses in February 2018. On one occasion, medics reportedly gave the second victim four doses of Narcan.

Possession with the intent to distribute heroin and fentanyl that resulted in serious bodily injury and/or death carries a potential sentence of 20 years to life in prison.

“This case is an example of how all levels of law enforcement are working together to trace overdose deaths back to their alleged suppliers and prosecute in the most appropriate venue,” U.S. Attorney Glassman said. “We will continue to collaborate in order to combat the impact of fentanyl and heroin on our communities.”

“The charges against Mr. Reeves tragically illustrate how frequently these deadly drugs are claiming the lives of our community members, especially here in Ohio with over 4000 deaths each year since 2016,” said Steve Francis, HSI special agent in charge for Michigan and Ohio. “HSI is committed to stopping the flow of these highly dangerous drugs into our communities and holding those who distribute this poison accountable for their actions.”

U.S. Attorney Glassman commended the investigation of this case by HSI and the Delaware County Sheriff’s Office, as well as Deputy Criminal Chief Michael Hunter, who is prosecuting the case.

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

# # #

COLUMBUS, Ohio – Joseph L. Converse, 47, of Lakeview, Ohio, was sentenced in U.S. District Court to 188 months in prison and 15 years of supervised release for attempting to coerce and entice a minor.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Internet Crimes Against Children Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.

According to court documents, in November 2017, a detective with the Franklin County Internet Crimes Against Children Task Force observed a posting on Craigslist titled “handyman for daughter or daughters.”

The post indicated the person placing the advertisement – Converse – was seeking to spend time with an underage female in exchange for car or house repairs, and that the time spent with a “daughter” would involve sexual activity. Specifically, the ad stated that “bareback must be okay” and that a “good faith bj” was required before any handyman work started.

The undercover detective responded, posing as the father of a school-aged female in Columbus needing brake work done on his car.

During their conversation, Converse repeatedly asked for pictures of the 14-year-old girl. When the detective said he had a four-wheel drive vehicle, Converse said he normally receives both vaginal and anal after such a job. When the detective expressed concern about Converse’s demand for anal and the possibility of pregnancy during vaginal intercourse, Converse said, “There is anal to [sic] for 4w drive” and asked if the child was a virgin.

After talking, Converse eventually traveled to Columbus to engage in sex acts with the fictitious minor. He was arrested upon arrival. Investigators discovered his phone, condoms, baby oil and baby lotion in his vehicle. Examination of the phone revealed all of the email and text conversations between Converse and the detective, as well as a Kik conversation in which Converse discussed performing plumbing work in exchange for sex with a 16-year-old girl.

Converse pleaded guilty in February 2018.

U.S. Attorney Glassman commended the cooperative investigation by the Franklin County ICAC, as well as Assistant United States Attorneys Heather A. Hill and Jonathan J.C. Grey, who are representing the United States in this case. 

###

CINCINNATI – A federal grand jury has charged four individuals in three separate cases related to pill mills in Hamilton, Ohio. The charging documents allege responsibility for the death of at least three patients and more than $2.4 million in healthcare fraud.

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, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine, Anthony Groeber, Executive Director, State Medical Board of Ohio, Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy, and Sarah D. Morrison, Administrator, Ohio Bureau of Workers Compensation, announced the charges.

Dr. Saad Sakkal

According to a 39-count indictment returned in Cincinnati, Sakkal engaged in the illegal distribution of prescription drugs, including opioids. Sakkal is charged with being responsible for the deaths of at least two patients, who died in 2016, due to complications resulting from drug use.

Sakkal, who was arrested by federal agents in Florida today, began practicing at Lindenwald Medical Association, Inc. in Hamilton, Ohio in February 2015. He also owned and operated the medical practice Metabolic Care Center in Mason, Ohio.

It is alleged that Sakkal prescriped medically-dangerous combinations of controlled substances, including:

• “Holy Trinity,” which consists of an opiate, a benzodiazepine and a stimulant,
• “Prescriptive Speedball” that includes an opiate and a stimulant, and
• “Triple Threat Heaven,” which consists of methadone, a benzodiazepine and a stimulant.

“According to the indictment, after Sakkal joined Lindenwald Medical Association the type of patients changed, with patients waiting long periods of time in order to see Sakkal, including waiting outside in the parking lot for the practice to open,” U.S. Attorney Glassman said.

Numerous pharmacies denied to fill Sakkal’s prescriptions, and pharmacists even called Sakkal to warn him of the risks inherent in his prescribing practices.

In response, on December 31, 2016, Sakkal organized and led a small group of his patients on a series of protests at local pharmacies, demanding that they continue to fill his prescriptions.

Dr. Nilesh Jobalia

According to the indictment in this case, Jobalia, 53, of Cincinnati, owned and operated Cincinnati Centers for Pain Relief in Hamilton, Ohio from March 2013 through December 2017. Although the practice was not registered as such, it allegedly operated almost exclusively as a pain clinic.

The 114-count indictment alleges patients were prescribed fentanyl, oxycodone, methadone, morphine and other controlled substances on many occasions without actually being seen by the doctor. According to the indictment, at least one patient died as a result of using the prescribed controlled substances. 

Jobalia’s practice also billed Medicare, Medicaid and the Bureau of Workers’ Compensation for medically unnecessary prescriptions.

“For example, prescriptions to one customer alone caused the Bureau of Workers’ Compensation to pay more than $450,000 for medically unnecessary drugs,” Glassman said. “In total, it is alleged that Jobalia caused more than $2 million in false claims.”

It is also alleged that Jobalia received more than $103,000 from a pharmaceutical company for purported speaking engagements about a Fentanyl Spray, a medication intended for breakthrough cancer pain.

The speaking engagements were actually sham programs, though, according to the indictment, in which many attendees were not medical professionals permitted to prescribe Fentanyl Spray.  Usually, Jobalia, some of his staff and the pharmaceutical sales representative were the only people present at the engagements, which were held at fine dining restaurants in the Cincinnati area. It is alleged that Jobalia received $1,600 to $2,200 per “speaking engagement” on 17 separate occasions.

Jobalia is charged with 88 counts of unlawful distribution of a controlled substance, one count of unlawful distribution of a controlled substance with death resulting, eight counts of health care fraud and 17 counts of violating the anti-kickback law.

This case is a result of the Department of Justice’s Opioid Fraud and Abuse Detection Unit’s investigative efforts. United States Attorney General Jeff Sessions announced last summer that the Southern District of Ohio is one of 12 Districts nationwide to receive the pilot program designed to focus specifically on opioid-related health care fraud.

Lindenwald Medical Association, Inc.

Three individuals are charged in the indictment alleging Lindenwald Medical Association, Inc. overcharged Medicare and Medicaid by approximately $400,000 by upcoding billing codes for medical services.

The four-count indictment includes one count of conspiracy to commit health care fraud and three counts of health care fraud.

Dr. Rakesh Sharma, 47, of Alachua, Fla., is the previous owner of Lindenwald Medical Association, Inc. He allegedly directed employees to see as many patients per day as they could, typically between 40 and 60 per provider. He also promised bonuses based on the receivables in the office.

It is alleged that patients were given very cursory exams and then prescribed controlled substances.

“The indictment alleges that urine tests were given to patients but never reviewed,” Glassman said. “In fact, according to the charging document, the results of those urine tests showed that patients were not taking the prescriptions, but likely diverting them.”

The indictment also alleges Sharma and co-conspirator Mike Jones, 51, of Liberty Township, Ohio – a nurse practitioner at the practice, ordered genetic tests regardless of medical necessity and received kickbacks from the labs processing the tests.

The three Southern District of Ohio cases are part of the largest health care fraud enforcement action in Department of Justice history this week, which resulted in at least 76 doctors charged and 84 opioid cases involving more than 13 million illegal dosages of opioids. The national takedown includes charges across 58 federal districts against more than 600 individuals total, who are allegedly responsible for more than $2 billion in fraud losses.

“Health care fraud is a threat to this country, both in terms of the well-being of patients and the integrity of government health care programs,” said Lamont Pugh, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Our agents will continue to work with our law enforcement partners to ensure these criminals are held accountable for their actions.”

“At the Ohio Attorney General’s Office, we’re committed to protecting Ohio families. Collaborating on the investigation and prosecution of cases like these is one of the ways we fulfill that mission,” Ohio Attorney General Mike DeWine said‎.

U.S. Attorney Glassman commended the investigation of the local cases by the HHS OIG, DEA, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorneys Salvador A. Dominguez, Timothy Oakley and Timothy Mangan and Special Assistant United States Attorney Maritsa Flaherty, who are prosecuting the cases.

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

# # #

COLUMBUS, Ohio – Jordan L. Price, 29, of Columbus, was sentenced in U.S. District Court to 295 months in prison and 15 years of supervised release for production of child pornography. Price pleaded guilty to the crime in January 2018.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Franklin County Prosecutor Ron O’Brien and other members of the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down by Senior U.S. District Judge Michael H. Watson.

According to the Statement of Facts in this case, in July 2017, the National Center for Missing and Exploited Children (NCMEC) received two reports from Google regarding an email account that had been used to send numerous child pornography files.

A search warrant executed on the Gmail account revealed that the account belonged to Price. Further investigation of Price revealed that he had used his cell phone to take several pornographic pictures of  two female children who were five years of age or younger.  Price’s hand was visible in some of the pictures, moving the victims’ clothing aside to expose and manipulate their genitalia.   

In addition to the pornography that Price produced, he was also found to possess more than 200 child pornography files, including depictions of the rape of toddlers, in his Dropbox account. 

“The youngest victim in this case was a toddler,” U.S. Attorney Glassman said. “The defendant moved aside the toddler’s diaper in order to photograph her genitalia. That Price saw these very young children as sexual objects to be exploited rather than children to be cared for indicates the necessity of the significant prison sentence he received today.”

U.S. Attorney Glassman commended the investigation of this case by the Franklin County Sheriff’s Office as well as Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Director, Franklin County Special Victim’s Unit, who are representing the United States in this case.

# # #

COLUMBUS, Ohio – Federal agents arrested four individuals today as part of a large-scale, drug-trafficking organization investigation.

Tomas Sandoval, Alvaro Gasca-Cardoso, Salatiel Ramos-Rajos and Alexis Zazueta-Soto have been charged with conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and other members of the DEA’s Task Force announced the charges.

The four defendants appeared in federal court today at 1:30pm for initial appearances before U.S. Magistrate Judge Kimberly Jolson.

As part of the case, investigators executed a search warrant on Friday at a residence on South Napoleon Avenue in Columbus. Law enforcement officials seized 10 kilograms of fentanyl, one kilogram of methamphetamine and 10 ounces of heroin.

This investigation is ongoing.

U.S. Attorney Glassman commended the investigation of this case by the DEA and Assistant United States Attorney Timothy Prichard, who is prosecuting the case. The DEA Columbus office includes full-time task force officers from Ohio State Highway Patrol, Ohio Bureau of Criminal Investigation (BCI), Franklin and Madison county sheriff’s offices, Columbus, Upper Arlington, Westerville and Lancaster police departments, and the Columbus Airport Police Department.

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

# # #

CINCINNATI – A federal grand jury has charged 11 individuals in a narcotics and money-laundering conspiracy, which also involves allegations of operating drug involved premises, wire fraud and structuring, through a 20-count superseding indictment returned here Thursday and unsealed today.

Two defendants, Derwin Gadson and Ronnie Parrott, remain at large. The other nine were arrested late last week.

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, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Cincinnati Police Chief Eliot K. Isaac announced the charges.

According to the indictment, from at least August 2012 until April 2017, the defendants allegedly operated a narcotics conspiracy and distributed fentanyl, ketamine, cocaine and heroin in the Cincinnati region.

Those charged include:

Name

Age

City of Residence

John T. Moore, Jr.

33

Cincinnati

Ricardo Campbell

33

Cincinnati

Teron Campbell

26

Cincinnati

*Derwin Gadson

22

Cincinnati

Patricia O’Neal

37

Cincinnati

Timothy Mosely

34

Cincinnati

*Ronnie Parrott

33

Cincinnati

Keiron Ashurst

53

Cincinnati

Vernon Coffee

 

Cincinnati

Shanda Green

39

Cincinnati

Jeronda Kelley

36

Cincinnati

* Fugitives

The indictment also formally charges Campbell with operating a drug involved premises at 5520 Silverpointe Drive in Cincinnati.

Sixteen additional homes are named in the indictment as properties potentially purchased with drug proceeds or through other illicit means, including homes in Cincinnati on Montana, Lowry, Mystic, Wilson, Crestline, Wyoming, Simpson, Cleveland and Blair avenues, Saffer and Dillward streets, Woodcrest and Sarvis courts, Rapid Run and Montgomery roads, a home in Fairfield on Flaig Drive, and a home in West Chester on Tarragon Court.

Moore – who solely owned and operated both John T. Moore Construction, LLC and Lieutenant Dan, LLC (a real estate company) – purchased four of the properties by allegedly defrauding mortgage lenders.

He allegedly lied on loan applications in order to secure loans and enter into purchase agreements, including, $20,000 for 2620 Montana Avenue in Cincinnati, $20,500 for 3973 Lowry Avenue in Cincinnati, $147,000 for 5945 Flaig Drive in Fairfield and $42,250 for Rapid Run Road in Cincinnati.

The superseding indictment alleges Moore falsified bank statements to inflate the available balance and overstated the value of other properties he claimed to own. Moore also allegedly did not disclose that certain loans were to purchase residential property as opposed to a Business Equity Line of Credit.

Additionally, Moore, Green and Kelley are charged with structuring financial transactions to evade tax requirements and with money laundering.

For example, between July and November 2016, the trio allegedly made cash deposits of various monetary denominations totaling in excess of $270,000 into seven bank accounts. Likewise, it is alleged they deposited more than $230,000 into various accounts in a little over a month in 2017.

“We are on a mission to rid the Southern District of Ohio of criminal organizations that traffic fentanyl and other deadly drugs,” said U.S. Attorney Glassman. “In carrying out that mission, we’re seeking not only to hold perpetrators criminally responsible, but also to take away the fruits of the crime. We want to make sure that drug trafficking doesn’t pay.”

U.S. Attorney Glassman commended the investigation of this case by the FBI, IRS-CI and Cincinnati Police Department, as well as Assistant United States Attorney Christy Muncy, who is prosecuting the case.

If you have information on the whereabouts of Gadson or Parrott, please call the FBI at (513) 421-4310.

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

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