Southern District of Ohio

COLUMBUS, Ohio – A federal grand jury has charged three individuals with crimes related to a Las Vegas-to-Columbus oxycodone ring in two indictments returned here yesterday and filed today.

James A. Stone, 39, and David L. Pryor, 28, both of Columbus, are charged in one indictment with conspiracy to possess with intent to distribute oxycodone and conspiracy to commit money laundering. Arthur G. Pirtle, Sr., 66, of Las Vegas, was charged with the same two crimes in a separate indictment.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges.

According to the indictments, between 2012 and 2015, defendants conspired together and with others to distribute Oxycodone.

They would allegedly conceal the drug proceeds in carryon luggage, checked luggage and/or parcel packages to transport the illegal proceeds to and from Las Vegas and Columbus, Ohio. For example, Stone was interdicted by law enforcement during a trip from Columbus to Las Vegas and $21,000 of drug proceeds was discovered inside pairs of pants in his luggage.

The indictments also allege Stone, Pryor and Pirtle wired approximately $300,000 in drug proceeds.

Additionally, in 2013, Pirtle opened a bank account in the name Another Beginning LLC and that account received multiple cash deposits in the Southern District of Ohio that were allegedly proceeds from the sale of Oxycodone. Between November 2012 and October 2015, the account received more than $400,000 in cash deposits.

Since 2014, Pryor’s debit cards have been used to purchase numerous airline tickets for members and associates of the drug trafficking organization, including Maisha Caples, Marquis Pryor and Marcus Pryor, all of whom were prosecuted and convicted in the Southern District of Ohio. Marcus Pryor was sentenced to 140 months in prison, Marquis Pryor was sentenced to 93 months in prison and Caples was sentenced to 45 months in prison for charges related to the drug and money-laundering conspiracy.

Conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering are each crimes punishable by up to 20 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the IRS CI and DEA, and Deputy Criminal Chief Michael Hunter, who is prosecuting the case.

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

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CINCINNATI – Richard Lee Devito, 34, of Batavia, Ohio, pleaded guilty in U.S. District Court to creating child pornography.

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, announced the plea entered into today before U.S. District Judge Susan J. Dlott.

Devito admitted to inducing an eight-year-old female to engage in sexually explicit conduct in August 2016 for the purpose of making child pornography. Devito used the messaging app “ooVoo,” pretended to be a 13-year-old and persuaded the child to send him videos of her naked. The videos included the minor dancing or rubbing her genitalia.

“As he admitted in court today, Devito knowingly induced more than 25 minors to send him sexual or nude videos and photographs over the Internet,” said U.S. Attorney Glassman. “The minors were typically between the ages of eight and 12. He would often encourage the children to rub their genital and place objects up their vagina or anus.”

Devito also possessed thousands of images and video files that depicted child pornography. Several included prepubescent children under the age of 12 engaged in sexual acts with adults.

Devito pleaded guilty to one count of production of child pornography, which is punishable by a range of 15 to 30 years in prison and five years up to a lifetime of supervised release.

“As a parent, this kind of predatory behavior over the internet is frightening,” said U.S. Attorney Glassman. “I commend the FBI for its investigation of the case, which led to today’s guilty plea.” U.S. Attorney Glassman further commended Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case.

 

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WASHINGTON – U.S. Attorney Benjamin C. Glassman announced three employees of the U.S. Attorney’s Office in the Southern District of Ohio were recognized today by Deputy Attorney General Rod Rosenstein and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony in Washington, D.C.

They were three of 162 members of the Department of Justice nationally recognized, and the Southern District of Ohio was one of 35 districts represented at the ceremony.

Brent G. Tabacchi received the Superior Performance as an Assistant United States Attorney recognition. Tabacchi has been in the District’s Dayton office for more than 13 years and prosecuted the largest Ponzi scheme in Dayton’s history, U.S. v. Apostelos. He has also prosecuted other significant white-collar cases, numerous narcotics and child exploitation cases.

“Brent has handled – and continues to handle – an extremely diverse and difficult case load that includes some of the most significant prosecutions ever in Dayton, and he does so while consistently maintaining the highest standards of prosecutorial excellence,” U.S. Attorney Glassman said.

Craig A. Black was recognized for his Superior Performance in a Litigative Support Role. Black serves as the head paralegal in the Financial Litigation Unit (FLU) and has served the district for more than 15 years.

“Craig is a national leader in innovating our financial litigation program in the Southern District of Ohio, as well as those of many other U.S. Attorney’s offices throughout the country,” U.S. Attorney Glassman said. “Craig’s tireless dedication to the mission of FLU has established him as a behind-the-scenes champion for victims of crime.”

Black has helped revolutionize how the District collects criminal civil monetary judgments. He has been instrumental in developing the District’s Criminal Judgment Enforcement Team, leading not only to record-setting collection efforts in the Southern District of Ohio, but improvements in FLU nationwide.

Jennifer Rausch was awarded recognition for her Superior Performance as a Special Assistant United States Attorney. Rausch is Director of the Special Victims Unit at Franklin County Prosecutor Ron O’Brien’s Office and has been cross-designated as a federal prosecutor for nearly four years.

“We are very lucky in Franklin County to have Jennifer Rausch as the Director of our Special Victims Unit and her work as a SAUSA illustrates the great teamwork we have with the Department of Justice in the Southern District of Ohio,” Franklin County Prosecutor Ron O’Brien said.

Rausch has aided in the conviction of nearly two-dozen criminal defendants on human trafficking, child enticement and child pornography offenses.

“Jen has helped build numerous major investigations into successful prosecutions, convictions, and trial victories, all the while tending the often-fragile victims and shattered families of these types of cases with exceptional sensitivity and care,” U.S. Attorney Glassman said. “Her years of courtroom experience have been invaluable in significant suppression hearings, a high-stakes federal jury trial resulting in convictions on all counts, and numerous contentious federal sentencings.”

“The outstanding achievements of these three individuals warrant their national recognition today,” Glassman added. “They are exemplary of the groundbreaking work that the men and women of the Southern District of Ohio are performing every day on behalf of the United States.”

In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues.  But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

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DAYTON – Four men have been charged federally in a case involving the seizure of approximately 20 pounds of fentanyl.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Department of Homeland Security Investigations, Ohio Attorney General Mike DeWine, Montgomery Sheriff Phil Plummer and other agencies with the Miami Valley Bulk Smuggling Task Force announced the charges.

Omar Alejandro Cantu Garcia, David Guillermo Cantu Garcia, Pedro Torres Medina and Reyes Espinosa Aguilar (also known as Rodrigo Martinez Jr.) were each charged federally yesterday with one count of conspiracy to possess with intent to distribute fentanyl.

According to an affidavit filed in support of the criminal complaint, Omar Cantu and David Cantu entered the United States from Mexico via the Laredo, Texas Port of Entry on Sunday. On Monday, agents observed the pair exit a hotel in Dayton.

Activity consistent with drug trafficking – including driving their vehicle on a “heat run” to check for law enforcement, meeting a number of vehicles at a gas station parking lot and transferring packages between vehicles – led to traffic stops and the search of one residence on Prentice Drive in New Carlisle.

One vehicle, which was stopped by Clark County Sheriff’s Deputies, contained eight vacuum-sealed packages of cash. Inside the residence, agents discovered at least 50 pounds of marijuana sealed in plastic bags in the garage and nine kilogram blocks of fentanyl in a closet inside the home.

Conspiracy to possess with intent to distribute fentanyl is punishable by 10 years up to life in prison.

U.S. Attorney Glassman commended the investigation of this case by the Miami Valley Bulk Smuggling Task Force, and Assistant United States Attorney Brent Tabacchi, who is prosecuting the case.

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

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

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COLUMBUS, Ohio –William P. Elschlager, 49, of Marietta, Ohio, pleaded guilty in U.S. District Court today to cyberstalking.

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

Elschlager was employed with the Ohio State Highway Patrol for 19 years and served as post commander for the Marietta Post.

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

“Today in court Elschlager admitted that he made phone calls and sent text messages regarding the victim’s whereabouts and, at times, her specific location, causing substantial emotional distress to the victim,” U.S. Attorney Glassman said. “For example, he texted the victim while she was in a retail store in Vienna, W.Va. and told her she needed to be aware of her surroundings and watch who she was around.”

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

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

Cyberstalking is a crime punishable by up to five years in prison.

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

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CINCINNATI – The second of two defendants in a child pornography production case has been found guilty.

U.S. District Judge Susan J. Dlott found Jason Fletcher, 41, of Franklin, Ohio, guilty of conspiracy to produce and production of child pornography at the conclusion of a bench trial yesterday afternoon.

He and Ciera Richter, 25, of Cincinnati, were indicted by a federal grand jury in December 2017. Richter previously pleaded guilty to one count of conspiracy to produce child pornography.

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

According to court documents, Fletcher was previously convicted by the state of Ohio of importuning a minor, among other crimes. Under the terms of his probation, he was not to possess pornography of any kind.

In May 2017, during a visit with his probation officer, the officer noticed Fletcher had two mobile devices and, after having Fletcher provide access to the devices, started to review the phones’ contents. The probation officer found pornography of a minor female on one of the phones and Fletcher was subsequently arrested.

Search of the phone revealed, among a collection of child pornography, child pornography videos made with the phone. Some of the videos on the phone involve Fletcher, Richter and a two-year-old.

According to evidence at Fletcher’s bench trial and Richter’s plea, in February 2017, on an evening when Richter was babysitting the toddler, Fletcher used his cell phone to record videos of himself molesting the victim, while Richter held and moved the two year old.  Fletcher brought “medicine” with him, which Richter gave to the child. Fletcher was a registered sex offender at the time he made the videos.

Conspiracy to produce child pornography and production of child pornography are crimes that generally carry a potential sentence of 15 to 30 years in prison. Fletcher faces a potential range of 35 years to life in prison, because he has at least two prior state convictions for sex crimes involving children.

U.S. Attorney Glassman commended the investigation of this case by HSI and the Warren County Sheriff’s Department, as well as Assistant United States Attorneys Megan Gaffney and Christy Muncy, who are prosecuting the case.

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DAYTON – A federal grand jury has charged the owner and manager of Busch’s Country Corner, Inc. with fraud charges related to the Supplemental Nutrition Assistance Program (SNAP) in a 42-count indictment returned here today.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General Investigations, Midwest Region, Yvonne DiCristoforo, Special Agent in Charge, U.S. Service and Michelle Thourot, Agent-in-Charge, Ohio Investigative Unit, announced the charges.

According to the indictment, from April 2010 until May 2018, Busch’s Country Corner co-owner Michael D. Busch and his brother, Randall S. Busch, illegally exchanged cash for SNAP benefits.

The indictment alleges the defendants caused more than 195,000 individual SNAP Electronic Benefit Transfer (EBT) transactions to be completed by Busch’s Country Corner, totaling more than $5.4 million. It is alleged that approximately 64 percent, or $3.4 million, of those SNAP transactions were fraudulent. Busch’s Country Corner operates as a vendor in the downtown Cincinnati Findlay Market complex.

The defendants allegedly used electronic point of sale devices in order to process EBT transactions for cash. For example, one transaction included a beginning EBT balance of $1,300 and an ending balance of $11.

The indictment includes one count of conspiracy to commit money laundering, one count of conspiracy to commit SNAP fraud, 20 counts of SNAP fraud and 20 counts of wire fraud.

U.S. Attorney Glassman commended the investigation of this case by the USDA OIG, U.S. Secret Service and Ohio Investigative Unit, and Assistant United States Attorney Dwight Keller, who is prosecuting the case.

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

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COLUMBUS, Ohio – Shane Ryan Hammond, 26, of Hilliard, Ohio, pleaded guilty in U.S. District Court to impersonating a federal agent, kidnapping, wire fraud and interstate transportation of a stolen vehicle.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Michael B. Stuart, United States Attorney for the Southern District of West Virginia, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Norah McCann King.

According to court documents, from at least March 2016 until May 2017, Hammond owned and operated “Midwest Fugitive Task Force” located in Columbus. In this capacity, he was often referred to as Commander or Lieutenant Hammond and sought out employment opportunities as a bail recovery agent for himself and other employees.

Hammond was not actually licensed as a bounty hunter, nevertheless, on at least nine occasions, Hammond knowingly and unlawfully kidnapped a person for reward. All of these individuals were considered “bail skips” and Hammond had been hired by a bail bondsman in West Virginia to apprehend the individuals and return them to a designated jail facility for a monetary reward.

“Hammond would often dress in an all-black tactical uniform with a black ballistic vest,” U.S. Attorney Glassman said. “He typically carried multiple handguns, throwing knives, a Taser and usually one or two law-enforcement-style badges with ‘SWAT’ shoulder patches and a large back patch reading ‘AGENT.’ But he was absolutely not a federal agent – or a law enforcement officer of any kind.”

For example, in May 2017, Hammond kidnapped an individual outside of the individual’s grandmother’s home in Columbus. He pushed himself into the grandmother’s residence, heavily armed, and ran to the male individual with his AK47 up and pulled out his Taser (Hammond does not have any formal training with either of these weapons). He ordered the individual to the ground, kicked the individual’s drink and threatened the individual not to do “anything stupid” or he would get hurt.

As another example, when searching for a female in Canton, Ohio in September 2016, Hammond handcuffed the individual’s mother after forcibly entering the home and pointing a rifle at her. He indicated he was a Federal Bounty Hunter and told her she had the right to remain silent.

He then handcuffed the female’s father and said he was taking the father with him to help look for his daughter. Hammond reiterated that if the father did not go with him, he would take his wife to jail.

Hammond placed the handcuffed father into his vehicle and did not return him until the following morning – still in handcuffs. In fact, on the drive back, Hammond was pulled over for speeding and Hammond told the Trooper he was working for a federal agency.

Hammond routinely represented himself to others as a member of law enforcement, pretending to be a member of the FBI Joint Terrorism Task Force, working with Homeland Security, a SWAT officer and a federal agent, generally.

For example, in March 2017 in the Cincinnati area, Hammond told a female “you realize lying to a federal agent is a crime” and then, “don’t lie to a federal agent, that’s four years in jail.” He then added, “Don’t get an attitude. I’m just letting you know if I come back and I find out you’re involved I’m going to arrest you, you got me.” Making false statements to an official of the United States is actually a crime punishable by up to five years in prison.

In the same month, Hammond also visited an apartment complex in Jackson, Ohio and called one of the managers to explain that he had a warrant and was seeking a fugitive involved in the shooting of a Huntington, W.Va. police officer, although all of this statement was untrue. He told management he had called the Jackson Police and that the police would stay out of his way because he was a federal investigator and he knew what to do.

His false representations at the apartment complex led to the apartment management sharing H.U.D. files with Hammond and Hammond’s search of the apartment of an elderly female, to whom he identified himself as “Commander Hammond with the U.S. Government Fugitive Task Force.”

Hammond was charged by a Bill of Information in October 2017 and, in January 2018, failed to appear for his arraignment.

Through their efforts to locate Hammond, FBI agents uncovered additional criminal activity – namely, wire fraud and interstate transportation of a stolen vehicle.

Hammond devised a scheme to defraud investors of more than $48,000, telling investors he had secured a government contract for $79 million to provide physical security to the Norfolk Naval Base in Virginia. Hammond represented that he needed start-up money for the business and legal costs until he would receive the $79 million a few months later.

One investor also allowed Hammond to borrow his Chevrolet truck. Hammond then re-registered the truck into his own name, stole it and drove it to West Virginia, where he was later arrested.

He pleaded guilty to a Superseding Bill of Information, which included one count each of kidnapping, impersonating an agent of the United States and interstate transportation of a stolen vehicle, and two counts of wire fraud. Hammond also pleaded guilty to one additional count of kidnapping, as charged by the Southern District of West Virginia in a Bill of Information.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica W. Knight, who is representing the United States in this case.

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COLUMBUS, Ohio – William E. Young, 54, of Columbus, was sentenced in U.S. District Court today to 55 months in prison for cyberstalking.

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 by U.S. District Judge Michael H. Watson.

According to court documents, Young was arrested in October 1999 for menacing by stalking a female in Delaware County, Ohio. He has continuously harassed and stalked one of his arresting officers since the time of his arrest and conviction.

Young created webpages using the victim’s name in order to make derogatory statements about the victim and his official position.

He mailed letters on numerous occasions to the victim’s wife and family, neighbors, physician, barber, church, church pastor and pastor’s wife, as well as  to Ohio Wesleyan College, Delaware City Hall, the Delaware Chamber of Commerce, the Delaware City Mayor, Delaware City Council members, the Delaware Police Department, the Delaware County Sheriff’s Office, the Delaware County Jail, the Arapahoe County Prosecutor’s Office and other local community businesses.

A 62-page letter mailed in September 2015 to the victim’s spouse stated: “I’ll force his hand if the powers that be make the mistake of coming after me again. Then I’ll take everyone down who had a hand in what was done to me one by one.”

As part of his effort to harass and intimidate, Young filed multiple state and federal civil lawsuits against the victim and another arresting officer from Young’s 1999 arrest, and the Delaware Police Department, alleging various claims of corruption and fraud.

Young was indicted by a federal grand jury in August 2017 and pleaded guilty in January 2018. In April 2018, the defendant filed a motion to withdraw his guilty plea, which the Court thereafter denied.

“Young engaged in a campaign to harass and intimidate the victims of this case for nearly two decades,” U.S. Attorney Glassman said. “He sent at least 60 letters and mail on separate occasions, and created four separate websites to further his stalking activity. His deliberate, relentless stalking and the harm to the victims from his crime warrants the sentence he received today.”

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

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COLUMBUS, Ohio – John R. Cacaro, 58, of West Chester, Ohio, pleaded guilty to wire fraud and money laundering as part of a scheme to defraud the Ohio Bureau of Workers’ Compensation for his own personal gain.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, and Jim Wernecke, Director, Ohio Bureau of Workers’ Compensation special investigations department, announced the guilty plea entered into today before U.S. District Judge Michael H. Watson.

According to court documents, between 2011 and 2013, Cacaro owned Employers Choice Plus, LLC, a company classified by the Ohio BWC as a Professional Employment Organization (PEO). A PEO is generally responsible for processing payroll and remitting insurance premium payments to the Ohio BWC on behalf of their client employers.

Specifically, on a weekly basis, more than 100 client companies would provide Cacaro’s company with payroll information. Employers Choice Plus then computed the amounts owed to employees, taxing authorities and the Ohio BWC. Employers Choice Plus sent weekly invoices to the client companies, who would then pay Employers Choice Plus electronically for Employers Choice Plus to pay the payroll, taxes and workers’ compensation. Cacaro’s company issued the employees’ paychecks, paid the taxing authorities and maintained the workers’ compensation premiums until they were due to be paid semi-annually.

On a semi-annual basis, Cacaro electronically reported to the Ohio BWC the payroll paid by each of his client employers, as well as the amount of workers' compensation premiums due based on the payroll.

Cacaro understated the payroll by millions of dollars, though, which resulted in a lesser amount of premiums owed to the Ohio BWC, despite having collected the correct amounts from its client employers. In total, Cacaro underreported more than $425,000 in workers’ compensation premiums.

Cacaro used the profits of scheme to fund lavish personal purchases, including a second residence in Naples, Fla. and a motor home.

As part of his plea agreement, he has agreed to pay the total amount of $425,246.58 in restitution.

“John Cacaro lined his pockets with the hard-earned money of his clients and systematically defrauded the Ohio BWC,” said Special Agent in Charge Korner. “Now he is a convicted felon and must repay the stolen money.”

“Anyone who cheats BWC to enrich themselves is driving up the cost of the whole system, and that hurts all of us,” said Director Wernecke. “It hurts employers who follow the law and play by the rules, and it hurts the injured workers who rely on us to help them get back to work and back to their lives as soon as safely possible.”

Wire fraud is a federal crime punishable by up to 20 years in prison and money laundering is punishable by up to 10 years in prison.

U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation and the Ohio Bureau of Workers’ Compensation, as well as Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.

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COLUMBUS, Ohio – Tawnya Writesel, also known as Tawnya Rutan, 39, of Columbus, pleaded guilty to conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). Writesel filed at least 100 false income tax returns in an attempt to receive more than half a million dollars in fraudulent tax returns.

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 guilty plea offered before U.S. Magistrate Judge Norah McCann King.

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

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

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

Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014. He pleaded guilty in April 2018 to one count of conspiracy to submit false claims and is awaiting sentencing.

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

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

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

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

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CINCINNATI – Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, of Cincinnati, were each sentenced in U.S. District Court today for their roles in the sex trafficking of a minor. Ho was sentenced to 30 years in prison, followed by 10 years of supervised release and Otero was sentenced to 10 years in prison, followed by 10 years of supervised release. 

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, Union Township Police Chief Scott Gaviglia and other members of the FBI’s Child Exploitation Task Force announced the sentences imposed today by U.S. District Judge Susan J. Dlott.

In May 2017, the defendants conspired to harbor a 14-year-old female and caused her to engage in a commercial sex act.

Both defendants were charged by criminal complaint and arrested on May 4, 2017. They have remained in custody since. They were indicted by a federal grand jury in the same month.

In December 2017, Ho and Otero each pleaded guilty to one count of conspiracy to sex traffic a child. Ho also pleaded guilty to one count of conspiracy to produce child pornography.

Pursuant to the Child Victims’ and Child Witnesses’ Rights Act, additional specific details of the case remain under seal.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Union Township Police, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.

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

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

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

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

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

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

Aiding and abetting the possession of a firearm by a prohibited person is a federal crime punishable by up to 10 years in prison.

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

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DAYTON – Kenneth Stopkotte, 53, of Unionville, Ind., pleaded guilty in U.S. District Court to using counterfeit money.

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 plea entered into before 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.

As part of his plea, Stopkotte will forfeit his phone, and the genuine cash he possessed will be forfeited or applied to his restitution obligation and court fines.

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.

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COLUMBUS, Ohio – DeShaune K. Stewart, 24, of Columbus, Ohio, was indicted by a federal grand jury today with two counts of murdering an officer of the United States Government.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tommy D. Coke, Inspector in Charge, United States Postal Inspection Service (USPIS), Pittsburgh Division, Franklin County Prosecutor Ron O’Brien, Columbus Police Chief Kim Jacobs and Dublin Police Chief Heinz von Eckartsberg announced the charges.

According to the indictment, on December 23, 2017, Stewart killed Ginger E. Ballard and Lance Herrera-Dempsey. Both victims were employees of the United States Postal Service and killed on account of their official duties.

Stewart was charged by federal criminal complaint on December 27, 2017. The affidavit filed in support of the criminal complaint details that on December 23, at approximately 4:25am, Dublin Police were dispatched via a 911 call to the United States Post Office located at 6400 Emerald Parkway on reports of an active shooter.

When they arrived they found a male subject, Herrera-Dempsey, who was a Customer Services Supervisor with direct supervision duties over Stewart, deceased from two gunshot wounds.

At approximately 7:18am on the same day, Columbus Police Officers responded to Bowland Place North in Dublin.

Officers arrived to find Stewart completely nude, in possession of a handgun, and in the vicinity of a second deceased victim, Ballard, who was the Postmaster for Dublin. Stewart was arrested by Columbus Police Officers and has been in custody since.

Killing any officer or employee of the United States is a federal crime eligible to be punished by the death penalty.

U.S. Attorney Glassman commended the investigation of this case by Dublin and Columbus Police and USPIS, as well as Assistant United States Attorney David A. DeVillers and Special Assistant United States Attorney James Lowe, who are prosecuting the case.

# # #

COLUMBUS, Ohio – John E. Kelly, 63, of Columbus, Ohio, pleaded guilty in U.S. District Court to one count each of mail fraud and tax evasion as part of a scheme to defraud his employers of approximately half a million dollars.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Angela L. Byers, Federal Bureau of Investigation (FBI), Cincinnati Division and Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, announced the plea offered before U.S. Magistrate Judge Norah McCann King.

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

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

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

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

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

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

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

Mail fraud is a federal crime punishable by up to 20 years in prison and tax evasion carries a potential maximum sentence of five years imprisonment.

“John Kelly held very important positions in businesses that placed their trust in him, and he abused that trust, not once, but twice” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only did he line his own pockets with stolen advertising dollars, and he now owes the IRS for not reporting the stolen money.”

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

# # #

DAYTON – A federal grand jury has charged Travis E. Walker, 35, of Miami Township, Ohio, with producing, distributing and possessing child pornography in a six-count indictment returned here.

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, Montgomery County Sheriff Phil Plummer and Miami Township Police Chief Ronald L. Hess announced the charges.

According to the indictment, beginning in at least January 2018 and continuing through May 7, 2018, Walker allegedly sexually abused a minor in order to create child pornography. He is also charged with distributing and possessing child pornography.

Producing child pornography is punishable by 15 to 30 years in prison. Distributing child pornography carries a potential sentence of five to 20 years in prison. Possessing child pornography is punishable by up to 10 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the FBI, Montgomery County Sheriff’s Office RANGE Task Force and Miami Township Police, as well as Assistant United States Attorney SaMee Harden, 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 – Former Ohio State Highway Patrol Trooper Jason J. Delcol and co-defendants Stevedore Crawford, Jr., Carlos Carvalho and Benjamin J. Owings pleaded guilty in U.S. District Court today for their roles in a drug-trafficking ring.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and members of the Delaware County Drug Task Force announced the pleas offered before U.S. Magistrate Judge Norah McCann King.

The men are four of six who were charged in February 2018 in the drug-trafficking operation in Delaware, Ohio.

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

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

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

In February 2018, when law enforcement searched Delcol’s home, they discovered a machine gun and a silencer, neither of which was registered.

Delcol pleaded guilty to one count each of conspiracy to distribute controlled substances within 1,000 feet of a public elementary school, witness tampering and possession of an unregistered machine gun and an unregistered silencer. The drug-trafficking conspiracy charge carries a potential maximum of 40 years in prison. Witness tampering is a crime punishable by up to 20 years in prison. Possessing an unregistered machine gun and silencer carries a potential maximum prison sentence of 10 years. Delcol also agreed to forfeit the illegally possessed weapons.

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

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

Owings distributed testosterone, anabolic steroids, human growth hormone and oxycodone pills to Delcol. He also received hydrocodone, oxycodone and Xanax from Delcol. Owings pleaded guilty to one count of conspiracy to distribute controlled substances.

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

# # #

COLUMBUS, Ohio – A federal grand jury has charged Charles Michael Stratton, 61, of Fairborn, Ohio, with multiple counts of wire fraud and money laundering in an indictment returned here yesterday and filed today.

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 charges.

According to the indictment, Stratton served as the Facilities Manager for Honda of America Manufacturing, Inc. in Marysville, Ohio from 2008 until March 2015. In his role, he oversaw various vendor contracts, including those for security services, janitorial services, food service and uniform/laundry on behalf of Honda.

Acrux Investigation Agency, located in Lakeview, Ohio, provided physical and personal security services for Honda. Surmount, also located in Lakeview, was a subsidiary of Acrux and provided monitoring services to Honda.

It is alleged that Stratton executed a scheme to defraud Honda using Acrux and Surmount by creating multiple purchase orders for payments in amounts just under $100,000, a threshold in which additional oversight and approval is required. Using these purchase orders, as well as the main labor contract, Stratton allegedly caused Acrux and Surmount to submit false invoices to Honda and instructed them to keep the money in a “future fund.” Money allocated to the future fund was then used, in part, to pay Stratton directly or through his organization, SAFE. Springfield Area Fastball Elites, Inc. (SAFE) was an Ohio non-profit created by Stratton to support local baseball teams; however, SAFE lost its classification as a 501(c)(3) in 2010.

Stratton is also charged with defrauding at least three other Honda vendors through the solicitation of donations for SAFE between 2012 and 2014, when it no longer held its tax-exempt status. Stratton received multiple donation checks, which he would either deposit in part to the SAFE bank account, while keeping a portion of the donation in cash for himself, or deposit the donation check entirely into his personal account. Only a fraction of the funds received through donations were actually spent in furtherance of SAFE’s mission.  

Stratton is charged with 38 counts of wire fraud and six counts of money laundering. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential maximum sentence of 10 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorneys Jessica W. Knight and Peter K. Glenn-Applegate, who are prosecuting the case.

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

# # #

Two employees of an international engineering consulting firm were charged in a superseding indictment filed today for their alleged participation in a scheme to launder bribe payments to foreign government officials for the benefit of a Columbus, Ohio-based subsidiary of Rolls-Royce plc, to secure a contract to supply equipment and services to power a gas pipeline from Kazakhstan to China.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Acting Inspector in Charge Nicole Davis of the U.S. Postal Inspection Service’s Criminal Investigations Group, Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division and Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office Criminal Division made the announcement.

Azat Martirossian, 62, a citizen of Armenia, and Vitaly Leshkov, 50, a citizen of Russia, were charged by a superseding indictment filed in the Southern District of Ohio with one count of conspiracy to launder money and 10 counts of money laundering.  Petros Contoguris, 70, a citizen of Greece, was also charged on these counts, as well as one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), and seven counts of violating the FCPA.  Contoguris previously had been charged on all of these counts in an indictment that was filed on Oct. 12, 2017 and unsealed on Nov. 7, 2017.   Martirossian, Leshkov, and Contoguris are believed to be residing outside the United States.  

“The charges announced today against Azat Martirossian and Vitaly Leshkov further demonstrate the Criminal Division’s unwavering resolve to prosecute those who facilitate corruption and launder illicit proceeds,” said Acting Assistant Attorney General Cronan.  “Thanks to the coordinated efforts by our prosecutors and agents—working closely with their counterparts throughout the world—these defendants will face prosecution for their allegedly corrupt schemes.”

“The charges filed today reflect the continued determination of the United States to prosecute those who engage in foreign corrupt business practices,” said U.S. Attorney Glassman. “International actors should think twice before executing bribery schemes because the United States can and will discover and prosecute such schemes and their perpetrators.” 

“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Acting Inspector in Charge Davis.  “Corruption and bribery schemes such as this involving international corporations and conspirators are not victimless crimes.  This type of conduct can damage competitive domestic and international markets, and cause immeasurable economic losses both here in the United States and around the world.  Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are.  The collaborative investigative work on this case conducted by Postal Inspectors and our domestic and international law enforcement partners illustrates our efforts to protect the United States and the international marketplace.”

“The allegations outlined today exemplify how a small group of individuals, who knowingly engage in illegal payments in an attempt to advance businesses dealings, create an uneven global marketplace,” said Acting Assistant Director Hacker.  “The FBI with our partners continues to work these important cases in order to remove the notion that bribery, through backroom deals, is an acceptable way of doing business. This investigation demonstrates the importance of international cooperation amongst law enforcement in combatting fraud and money laundering on a global basis.”

“Today’s charges serve as a reminder of the important role the FBI plays in rooting out international corruption,” said FBI Special Agent in Charge DeSarno.  “No one is above the law, so let today’s announcement be a warning to those who may try to perpetrate a similar scheme that the FBI will work with global partners in its mission to detect and prevent corrupt business practices, and we will continue to hold those who attempt to take advantage of international markets accountable.”

According to the superseding indictment, Contoguris, the founder and chief executive officer of Gravitas & CIE. International Ltd. (Gravitas), former Rolls-Royce employees and executives, and others, allegedly conspired to pay bribes to foreign officials in exchange for directing business to Rolls-Royce Energy Systems Inc. (RRESI).  RRESI was a U.S.-based subsidiary of Rolls-Royce plc, the United Kingdom-based global manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors.   

The superseding indictment alleges that Contoguris, working with employees of an international engineering consulting firm (Technical Advisor), including Martirossian and Leshkov, devised and executed a scheme with Rolls-Royce executives and employees, whereby Rolls-Royce would pay kickbacks to the Technical Advisor employees and bribes to at least one foreign official in Kazakhstan, and disguise these payments as commissions to Contoguris’s company, Gravitas, in exchange for helping Rolls-Royce win contracts with Asia Gas Pipeline LLP (AGP).     

According to the superseding indictment, AGP was created to build and connect a gas pipeline between Central Asia and China, and the Technical Advisor purported to provide independent engineering consulting advice and other services to AGP.  The superseding indictment further alleges that after AGP awarded Rolls-Royce a contract in November 2009, worth approximately $145 million, Rolls-Royce made commission payments to Gravitas, and Contoguris then passed a portion of those commission payments onto the Technical Advisor employees, including Leshkov and Martirossian, knowing that a portion of that money would be shared with a foreign official consistent with their corrupt agreement.

The charges announced today follow the Jan. 17, 2017 announcement of a deferred prosecution agreement (DPA) with Rolls-Royce plc and a more than $800 million total penalty as part of a global resolution to investigations by the Department of Justice, U.K., and Brazilian authorities related to the corrupt conduct.  The charges also follow upon the Nov. 7, 2017 announcement, concerning Rolls-Royce former executives and employees James Finley, Keith Barnett and Louis Zuurhout, and Technical Advisor employee Andreas Kohler, each of whom have entered guilty pleas in connection with their respective roles in the bribery scheme.  The DPA acknowledged Rolls-Royce’s cooperation in this case, including with the Department’s investigation into individuals, and significant remedial measures.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.  

The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case.  Trial Attorneys Kevin R. Gingras and Vanessa Snyder of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys J. Michael Marous and Jessica Kim of the Southern District of Ohio are prosecuting the case.  

The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The United Kingdom’s Serious Fraud Office provided assistance in this matter, as did law enforcement colleagues in Brazil, which both coordinated with the Department to reach simultaneous resolutions with Rolls-Royce.  The Department also thanks its law enforcement colleagues in Austria, the Bahamas, Germany, the Netherlands, Singapore, Switzerland and Turkey.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

CINCINNATI – A federal grand jury has charged Jason Mize, 31, of Cincinnati, with using unreasonable force while acting under color of law in an indictment returned here yesterday and unsealed today.

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 charges.

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

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

Mize is charged with one count of depravation of rights under color of law, a crime punishable by up to 10 years in prison. He was arrested today by FBI agents.

U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorneys Megan Gaffney and Ebunoluwa Taiwo, who are prosecuting the case.

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

# # #

COLUMBUS, Ohio – E. Stanley Hoff, 69, of Westerville, was sentenced in U.S. District Court today to 40 months in prison for threatening to assault and murder a United States official.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and the United States Capitol Police announced the sentence imposed by U.S. District Judge Michael H. Watson.

Hoff was indicted by a federal grand jury in July 2017, and, according to court documents, threatened to assault and murder U.S Representative Steve Stivers and a member of Stivers’ family.

Hoff was responsible for a series of threatening voicemails from February to June 2017 left at the Representative’s office in Hilliard.

For example, in March, a portion of one of Hoff’s messages stated, “we’re going to take care of it our way” and “Leave Obamacare alone or die.”

In another message, Hoff references the June 2017 Congressional Baseball Game for Charity shooting and calls it “only the tip of the iceberg” saying maybe the “next one taken down will be” Stivers.

“Hoff threatened the Congressman and his family because the Congressman was not legislating according to Hoff’s political views,” said U.S. Attorney Glassman. “That is unacceptable in our society. Peaceful political argument or banter is one thing, but Hoff’s conduct was a far cry from that. Threatening to assault or murder a United States official on account of that official’s performance of his or her duties is a serious federal crime — regardless of political party or views. The significant prison sentence that Hoff received today is warranted by his conduct and, I hope, will make others think twice about threatening government officials.”

Hoff was arrested on June 21, when he was charged by a criminal complaint and has been held without bond. He pleaded guilty in October 2017.

U.S. Attorney Glassman commended the investigation of this case by the U.S. Capitol Police and Assistant United States Attorneys Kevin Kelley and Noah Litton, who are prosecuting the case.

# # #

WASHINGTON – Mercy Health, a nonprofit organization based in Cincinnati that operates healthcare facilities in Ohio and Kentucky, has agreed to pay the United States $14,250,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.  

The settlement announced today resolved allegations that Mercy Health provided compensation to six employed physicians – one oncologist and five internal medicine physicians – that exceeded the fair market value of their services.  Federal law restricts the financial relationships that hospitals may have with doctors who refer patients to them.  These issues were self-disclosed to the government by Mercy Health.  

“When physicians are rewarded financially for referring patients to hospitals or other health care providers, it can affect their medical judgment, resulting in overutilization of services and higher health care costs,” said Acting Assistant Attorney Chad A. Readler, head of the Justice Department’s Civil Division.  “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”   

“Hospitals should employ their physicians at a compensation level that is consistent with fair market value for the area of practice, and should not attempt to incentivize physicians to refer patients based on anything other than the best clinical interests of the patient,” said First Assistant United States Attorney Vipal Patel for the Southern District of Ohio.

The case was handled by the Justice Department’s Civil Division, the United States Attorney’s Office for the Southern District of Ohio, the Office of Inspector General of the Department of Health and Human Services, and the Centers for Medicare and Medicaid Services. The claims settled by this agreement are allegations only, and there has been no determination of liability.

COLUMBUS, Ohio – A federal grand jury has charged Kevin R. Foster, 42, of Montclair, N.J. with charges related to a fraud scheme in a second superseding indictment returned here today.

Foster was charged in an original, seven-count indictment in July 2016. A superseding indictment containing 10 counts – including additional wire fraud, money laundering and bankruptcy fraud charges – as well as a second victim, was returned in November 2017. Today’s second superseding indictment adds six more charges – two counts of tax evasion and four counts of filing a false tax return.

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 new charges.

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.

The original charges against Foster allege that he, 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 allegedly 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.

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

McKnight agreed to invest in the company, not knowing that Foster served as an officer/controller of Imperial. Foster allegedly withdrew more money from McKnight’s account than he had authorized, and transferred some of it to one of Imperial’s business associates in order to help keep Imperial afloat.

The latest indictment alleges that Foster failed to report on his 2012 and 2013 tax returns the millions of dollars that he stole from Ne-Yo and McKnight. Foster also allegedly claimed millions of dollars in bogus deductions in order to further reduce his tax liability.

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.

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

# # #

CINCINNATI – A federal grand jury has charged Matthew Ashcraft, also known as Andrew McCormick, 32, of Covington, Ky., with wire fraud and aggravated identity in an indictment returned here yesterday. Ashcraft, who was arrested today by FBI agents, allegedly devised a scheme in attempt to defraud a victims’ fund in a lawsuit against the Roman Catholic Diocese of Covington.

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 charges.

In 2003, a lawsuit was settled in the case of John Doe, et. al. v. Roman Catholic Diocese of Covington. As part of the settlement, a $90 million fund was created for victims of abuse. A minor’s fund of $4.5 million was created for those victims who were minors during the claim period. Submissions to the fund were available until 2015.

According to the indictment, in 2006, Ashcraft filed a claim seeking compensation for alleged abuse involving the Roman Catholic Diocese of Covington, et. al. The claim was approved for an award to Ashcraft in 2007 in the amount of $750,000.

In 2014, Ashcraft allegedly obtained the birth certificate of another individual, created an email address in that person’s name, and submitted a fraudulent claim for compensation in the Catholic Diocese of Covington lawsuit. Using the victim’s name, date of birth and social security number, Ashcraft caused the submission of a compensation request for approximately $1 million.

Ashcraft is charged with one count of wire fraud, a crime punishable by up to 30 years in prison, and one count of aggravated identity theft, which carries a potential additional two years in prison.

U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Christy L. Muncy, 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 – Law enforcement officials arrested seven individuals today in “Operation Purple Drank.” Fourteen total were previously indicted by a federal grand jury on charges unsealed today of conspiring to distribute codeine-promethazine, obtaining controlled substances by fraud and illegally using DEA registration numbers. Four defendants are already in custody on prior charges and three have not yet been apprehended.

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.

This investigation began when law enforcement officials with the Wooster Police Department, MEDWAY Drug Enforcement Agency in Wayne County and Parma Police Department identified multiple fictitious prescriptions.

In addition, the Warren County Drug Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), State of Ohio Board of Pharmacy, Ohio Bureau of Criminal Investigation, Delaware County Sheriff’s Office, Hocking County Major Crimes Unit and the Columbus, Dublin and Gahanna police departments also investigated this case.

According to the indictment, from January 2016 until February 2017, the co-conspirators allegedly created a significant number of fraudulent and forged prescriptions for codeine-promethazine syrup. It is also alleged that individuals were recruited to travel from Columbus, Ohio to various pharmacies in Ohio to fill the fake prescriptions.

Those charged include:

Name

Age

City

Mohamed A. Mohamed

25

Grove City

Sade S. Abdisaliis

21

Columbus

Abulkadir A. Yusuf

28

Columbus

Siyad A. Haji

26

Columbus

Mahdi H. Mohamed

23

Columbus

Abdirashid M. Ahmed

24

Columbus

Liban A. Hassan

25

Columbus

Alinoor S. Alinoor

23

Gahanna

Samatar A. Haji

23

Columbus

Ibrahim A. Shoble

29

Columbus

Abdifahi H. Abdirizak

21

Columbus

Ismail C. Cusmaan

22

Columbus

Alla-Magan M. Gani

21

Columbus

Mohamed H. Hashi

25

Columbus

The 17-count indictment includes 13 counts of obtaining substances by fraud. It also includes use of a fictitious DEA registration number and use of another’s DEA registration number.

U.S. Attorney Glassman commended the cooperative investigation of this case by federal, state and local law enforcement, including the assistance of more than 25 police departments statewide, as well as Assistant United States Attorney David J. Bosley, who is prosecuting the case.

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

# # #

COLUMBUS, Ohio – Lee Allen Goudy, 24, of Howard, Ohio, was sentenced in U.S. District Court to 78 months in prison and 10 years of supervised release for distribution of child pornography.

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 other members of the FBI’s Child Exploitation Task Force announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.

According to court documents, investigators learned through a cybertipline report that Goudy was distributing child pornography through email accounts, Dropbox and Kik messenger. When executing a search warrant on Goudy’s electronic devices, agents found more than 600 images of child pornography.

The government’s Sentencing Memorandum in this case details that Goudy frequently initiated communications with others and promoted the “taboo” images of sexual abuse of children as young as two to six years old.

“These communications involved utterly horrific discussions of the most depraved child sexual abuse and torture imaginable,” U.S. Attorney Glassman said. “Goudy consistently urged others to agree with his views about the sexual abuse of children and on some occasions even encouraged others to sexually abuse children.”

Goudy pleaded guilty to one count of distribution of child pornography in September 2016.

U.S. Attorney Glassman commended the cooperative investigation by the FBI, as well as Assistant United States Attorney Heather A. Hill, who is representing the United States in this case. 

###

A former employee of a U.S. government contractor in Afghanistan pleaded guilty today to foreign transportation of approximately $104,000 in stolen money.  The former employee admitted stealing the money from another employee who received the money in illegal kickbacks from an Afghan subcontractor in return for that employee’s assistance in obtaining subcontracts on a U.S. government contract.

 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office-Atlanta Resident Agency, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.

 

Frantz Florville, 33, of Columbus, Ohio, was charged in an information filed on April 5, in the Southern District of Ohio with one count of foreign transportation of stolen money.  He pleaded guilty to the information before U.S. Chief District Judge Edmund A. Sargus Jr. of the Southern District of Ohio, in Columbus.  A sentencing date has not been scheduled.

 

As part of his plea, Florville admitted that he worked in Afghanistan as a project specialist for an American defense contractor in Kabul, Afghanistan (the Prime Contractor).  As part of his duties, Florville worked for the Prime Contractor on an approximately $8 million contract with the U.S. Department of Defense. 

 

Florville admitted that in the spring of 2016, he became suspicious that another employee of the Prime Contractor, Nebraska McAlpine, was taking illegal kickbacks from an Afghan contractor in return for McAlpine’s assistance in the Afghan contractor’s companies seeking and acquiring subcontracts under the Department of Defense contract.  As a result, Florville admittedly took steps to record meetings between the Afghan contractor and McAlpine in May, June and July 2016 when those two met alone in McAlpine’s office at the secure facility in which the Prime Contractor’s employees lived.  Those recordings confirmed for Florville that McAlpine was taking kickbacks from the Afghan contractor.

 

After the last recorded meeting and the departure of McAlpine and the Afghan contractor from McAlpine’s office, Florville admittedly went into McAlpine’s office, found a bag with $108,000 in U.S. currency in it, and, without McAlpine’s permission, took it.  Florville admitted that he took the bag back to his own office, hid it and later that day took the money and hid it in his residential unit at the secure facility.

 

Florville further admitted that on July 16, 2016, he used $25,000 from the $108,000 stolen money to purchase nine diamonds from a jewelry shop at the secure facility.  On the following day, Florville flew from Afghanistan to Dubai, United Arab Emirates.  For that flight, he admittedly hid about $79,000 of the stolen money in boots that he purchased and altered for that purpose.  In Dubai, before boarding a flight to the Philippines on July 18, 2016, Florville admittedly transferred the money into his backpack for the second flight and took the diamonds with him on these flights.  Florville admitted that thereafter, he and his wife used the cash and diamonds that he had brought from Afghanistan for their personal purposes in the Philippines, where Florville then lived. 

 

McAlpine previously pleaded guilty in the Northern District of Georgia to seeking and receiving illegal kickbacks on a U.S. government contract.  On Nov. 28, 2017, he was sentenced there to 21 months in prison.

 

This matter was investigated by DCIS, SIGAR and Army CID-MPFU.  Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section is prosecuting the case, with assistance from the U.S. Attorney’s Office for the Southern District of Ohio.

COLUMBUS, Ohio – All four defendants charged in a narcotics conspiracy case after being captured in international waters near the Galapagos Islands have pleaded guilty. The co-conspirators were transported to Columbus in September 2017 for federal prosecution after being apprehended with approximately 720 kilograms of cocaine.

The more than 1,584 pounds of cocaine has an approximate street value of $25 million in total.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Commandant of the U.S. Coast Guard, Adm. Paul Zukunft announced the pleas.

According to the affidavit filed in support of the criminal complaint in this case, Ecuadorian nationals Hernan Emilio Caldas-Estupinan, Oscar Alipio Chila-Mendez, Carlos Alfredo Escobar-Estupinan and Mexican national Jesus Antonio Ramos-Chirino were detected in a dual engine speed boat on August 18 northwest of the Galapagos Islands in the Pacific Ocean.

The United States Coast Guard cutter James was dispatched to interdict the vessel in international waters and conduct a Right of Visit boarding. The watercraft had no flag flown, no registration documents, no registration number, homeport or name on the hull of the vessel, no identification of a sailing master and no claim of nationality for the vessel.

As part of its interdiction efforts, the James launched a helicopter and two patrol craft to approach the boat. When the defendants detected the helicopter and patrol craft, they began to jettison numerous packages from the vessel while attempting to flee from the helicopter.

The Coast Guard helicopter fired warning shots in an attempt to halt the flight, and when those warning shots went unheeded, the helicopter employed disabling fire. Once the vessel had been disabled, one of the patrol craft launched from the James took control of the vessel.

Coast Guard personnel collected the 25 packages that had been thrown from the boat and discovered that they contained approximately 720 kilograms of cocaine.

Each of the four defendants pleaded guilty to conspiracy to possess with intent to distribute five kilograms of more of cocaine while on board a vessel subject to the jurisdiction of the United States, a crime punishable by 10 years to life in prison.

U.S. Attorney Glassman commended the investigation of this case by the DEA and United States Coast Guard, as well as Assistant United States Attorneys David DeVillers and Jonathan Grey, who are prosecuting the case.

# # #

COLUMBUS, Ohio – Cheryl McGrath, 50, of Guysville, Ohio, was sentenced today in U.S. District Court to 36 months in prison for committing health care fraud and willful failure to pay over tax.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Ohio Attorney General Mike DeWine announced the sentence handed down by Chief U.S. District Judge Edmund A. Sargus, Jr.

According to court documents, McGrath owned and operated Home Health Care of Southeast Ohio in Guysville, Ohio since 1993.

From 2009 until 2015, McGrath executed a scheme to defraud the Ohio Medicaid Program by billing on behalf of Home Health Care of Southeast Ohio for home health nursing services that were never rendered. The defendant routinely changed the claim information in the billing software to falsely reflect that additional hours of nursing services had been provided and falsely increased the number of nursing visits from one visit per week to between three and five visits per week.

McGrath also submitted claims for nursing services of Medicaid patients who were ineligible because they were either residing in private nursing homes or deceased.

In total, her scheme included fraudulent claims in the amount of approximately $2.2 million.

From 2009 until 2013, McGrath maintained the books and records regarding payroll for the home health care business. During that time, she submitted Forms 941 to the IRS but did not pay over the federal employment taxes that were due, causing a loss of $366,825 to the IRS.

McGrath pleaded guilty to health care and tax fraud charges in June 2017. As part of her plea agreement, McGrath has agreed to pay more than $2.2 million in restitution to the Ohio Medicaid Program and the nearly $367,000 to the IRS.

“As the person who controlled the finances on behalf of Home Health Care of Southeast Ohio, Cheryl McGrath was entrusted with the significant responsibility to collect and turn over all IRS withholding taxes” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “By failing to do so, not only was the revenue due to the United States government affected, but more importantly, the Medicare and Social Security benefits of the employees was affected.”

“This scheme was intentional and egregious, and we worked hard to pursue a just outcome,” said Ohio Attorney General Mike DeWine. “Fighting health care fraud is a priority of my office.”

U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Department of Health and Human Services OIG, FBI and the Ohio Attorney General’s Office Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Jessica W. Knight and Kenneth F. Affeldt and Special Assistant United States Attorney Maritsa Flaherty with Ohio Attorney General Mike DeWine’s Office, who are representing the United States in this case.

# # #

CINCINNATI – A federal grand jury has charged five Cincinnati individuals with conspiring to commit bank fraud and with aggravated identity theft in an indictment unsealed here yesterday.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, Hamilton County Sheriff Jim Neal, West Chester Police Chief Joel Herzog, Green Township Police Chief James Vetter, Greensburg, Ind. Interim Police Chief Brendan Bridges, Norwood Police Chief William Kramer and Madeira Police Chief Dave Schaefer announced the charges.

According to the indictment, from February 2017 until April 2018, co-conspirators allegedly stole checks from mailboxes at residences and businesses. Defendants would then cash the stolen checks by pretending to be the lawful payees.

It is alleged that the group also fraudulently re-printed the original checks by inserting the names of new payees on the checks. Co-conspirators would recruit “cashers” who allowed the group to insert the casher’s name on the check in exchange for a portion of the proceeds.

Those charged include, Stephano Henderson (aka Face), 31; Laneal Henderson (aka Phatty Boi), 32; Eugene Clifford, 30; Markalo Harris, 25 and Ebony Lattimore, 30, all of Cincinnati.

The five defendants are each charged with one count of conspiracy to commit bank fraud, a crime punishable by up to 30 years in prison.

Each of the defendants is also charged with at least one count of aggravated identity theft. In addition, Stephano Henderson is also charged with one count of bank fraud.

Aggravated identity theft is punishable by up to two years in prison for each count in addition to time served for other offenses.

U.S. Attorney Glassman commended the cooperative investigation by law enforcement, and Assistant United States Attorney Matthew C. Singer, who is prosecuting the case.

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

# # #

COLUMBUS, Ohio – Michael (also known as Mickey) A. Prisley, 52, of Columbus, pleaded guilty 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 guilty plea entered into today before U.S. Magistrate Judge Norah McCann King.

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.

Conspiracy to submit false claims for income tax refunds carries a maximum penalty of 10 years in prison and a fine of up to $250,000.

“A once trusted criminal prosecutor is now a convicted felon because he chose to line his pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

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. Her case is pending.

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.

# # #

CINCINNATI – A federal grand jury has charged six individuals in a narcotics conspiracy involving the alleged smuggling of narcotics into an Ohio prison.

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 and Warren County Sheriff Larry L. Sims announced the charges.

Each defendant is charged with one count of conspiring to possess with intent to distribute narcotics, a crime punishable by up to 20 years in prison. Those charged include:

Name

Age

Residence

Joseph Brodbeck

59

Columbus

Alton Herron

46

Dayton

Gerry Branner

27

Cincinnati

William A. Lowery

30

London Correctional Institution

Daviontae Norvell

26

Dayton

Rodney J. Herron

27

Dayton

According to the indictment, the defendants conspired to distribute Suboxone, cocaine, methamphetamine and marijuana inside London Correctional Institute.

Brodbeck was a contract employee of the prison’s food service company and worked in the prison kitchen. He allegedly smuggled narcotics in to inmates after purchasing the narcotics in various cities in Southern Ohio, including Middletown, Dayton and Springfield. Brodbeck’s co-defendants were each inmates of the facility at one point and allegedly paid Brodbeck for the narcotics.

U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Bureau of Criminal Investigation (BCI), Warren County Sheriff’s Office and Ohio Department of Rehabilitation and Corrections, as well as Assistant United States Attorney Christy L. Muncy, who is prosecuting the case.

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

# # #

COLUMBUS, Ohio – Shawn P. Parrish, 38, of Newark, Ohio, was sentenced in U.S. District Court today to 180 months in prison and 10 years of supervised release for charges related to child pornography.

A United States District Court jury convicted Parrish in April of receiving and possessing child pornography. Parrish had been previously convicted of an offense involving aggravated sexual abuse, sexual abuse or abusive sexual contact of a minor.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), 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 U.S. District Judge Algenon L. Marbley.

According to court documents and testimony, investigation of a peer-to-peer file-sharing network led investigators to Parrish’s residence when they discovered child pornography being uploaded to an IP address there. While executing a search warrant at his Newark residence in August 2016, investigators found numerous images of a 12-year-old girl on Parrish’s phone.

Forensic evidence obtained from Parrish’s phone and the victim’s phone indicates that Parrish sent himself videos of the victim displaying her nude pubic area and that he received those videos via Facebook Messenger and thereafter created still images on his phone from the videos.

Parrish had previously been convicted in North Carolina in 1998 for Indecent Liberties with a Child and had been sentenced to 16-20 months in prison.

U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC Task Force, as well as Assistant United States Attorneys Heather A. Hill and Special Assistant U.S. Attorney Jennifer M. Rausch, Director of the Franklin County Special Victims Unit, who are prosecuting the case.

The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer-facilitated crimes against children. The following agencies are members:

 

Franklin County Sheriff’s Office

Ohio ICAC

Grove City Police Department

Columbus Police Department

Grandview Heights Police Department

Westerville Police Department

Hilliard Police Department

Franklin County Prosecutor's Office

Homeland Security Investigations (HSI)

Ohio Attorney General’s Office (BCI)

The Ohio State University Police Department

Upper Arlington Police Department

Circleville Police Department

Pickaway County Sheriff’s Office

Delaware County Sheriff’s Office

 

 

# # #

COLUMBUS, Ohio – Two Columbus brothers were sentenced in U.S. District Court for their roles in leading a narcotics trafficking conspiracy. Marcus L. Pryor, 38, was sentenced to 140 months in prison and Marquis L. Pryor, 26, was sentenced to 93 months in prison.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Michael H. Watson.

According to court documents, the two brothers had been diverting oxycodone pills from the Las Vegas area to Columbus since at least 2012. Law enforcement officials seized numerous U.S. mail packages containing thousands of oxycodone pills and large amounts of cash being sent between Las Vegas and Columbus in connection with this drug trafficking organization.

Agents made additional seizures connected to the defendants at airports and during traffic stops. For example, law enforcement seized 771 pills from Marquis Pryor in June 2016 and a mail parcel addressed to Marquis Pryor containing more than $17,000 in drug proceeds in June 2015.

Airline records show Marcus Pryor traveled between Las Vegas and Columbus no less than 30 times between 2012 and 2017. Similarly, Marquis Pryor took at least 20 flights between the two cities. 

The co-conspirators also engaged in financial transactions – making use of wire transfers, bank accounts, and prepaid debit cards – involving hundreds of thousands of dollars to conceal the nature and source of their profits and promote the drug trafficking organization’s activities.  Money was used to purchase airline tickets, pay for hotel rooms and cover other costs associated with bringing the drugs to Columbus for distribution. 

The Pryor brothers were indicted by a grand jury in June 2017.  In August 2017, each defendant pleaded guilty to one count of conspiracy to possess with intent to distribute oxycodone and one count of conspiracy to commit money laundering.

“Marcus and Marquis Pryor orchestrated a significant opioid distribution ring in the Columbus area,” U.S. Attorney Glassman said. “The organization distributed hundreds of thousands of oxycodone pills in our district and laundered in excess of one million dollars. Thanks to cooperative law enforcement efforts from a number of agencies, that operation is now dismantled.”

Marcus and Marquis Pryor also enlisted other co-conspirators to further the drug trafficking organization’s goals by, for example, sending and receiving parcels containing Oxycodone pills or drug proceeds and transporting pills or cash on their persons.

In October 2017, Maisha Caples and Michael Griffin were each sentenced for the same drug distribution and money laundering conspiracy crimes as the Pryors. Caples was sentenced to 45 months in prison and Griffin was sentenced to 80 months in prison.

U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS Criminal Investigation, USPIS and Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Brian J. Martinez, who is representing the United States in this case. 

###

DAYTON – Zachery Van Meter, 21, of Brookville, Ohio, was sentenced in U.S. District Court to 156 months in prison for receiving child pornography.

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, Preble County Sheriff Michael L. Simpson and Perry Township Police Chief Bob Bowman announced the sentence handed down today by U.S. District Judge Thomas M. Rose.

According to court documents, Van Meter created a Kik messenger app account in July 2016. From then until February 2017, Van Meter used Kik to receive images of child pornography from others and to communicate with others about the sexual exploitation of children.

During the course of these conversations, Van Meter took at least 15 photographs of clothed juveniles who were known to the defendant and sent these photographs to others in an effort to receive more child pornography files.

Van Meter received at least 30 sexually explicit photographs of children, including at least one that portrayed sadistic and/or masochistic conduct involving the binding of a child’s arms and legs by black material to a hook on the floor. Based on his conduct, Van Meter received a sentencing enhancement for engaging in a pattern of activity involving the sexual abuse or exploitation of minors.

Van Meter pleaded guilty in November 2017.

U.S. Attorney Glassman commended the investigation of this case by the FBI, Preble County Sheriff’s Office and Perry Township Police Department, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.

# # #

COLUMBUS, Ohio – The co-owner and CEO of TERiX Computer Company, Inc. was sentenced in U.S. District Court today for his role in fraudulently obtaining more than $10 million worth of intellectual property. Bernd D. Appleby, 66, of San Jose, Calif., was sentenced to 24 months in prison and two years of supervised release and ordered to pay a $100,000 fine.

TERiX – located in Sunnyvale, Calif. and Dublin, Ohio – used the intellectual property belonging to Sun Microsystems, Inc. and Oracle Corporation to support its customers nationwide and internationally. 

U.S. Attorney Benjamin C. Glassman of 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 James L. Graham.

Appleby was one of four TERiX executives who pleaded guilty in August 2017 to one count of conspiracy to commit wire fraud. The others have also been sentenced and include:

• TERiX co-owner and COO James A. Olding, 52, of Dublin, Ohio, who was sentenced to 12 months and one day in prison, three years of supervised release and a $50,000 fine;
• Director of Sales Lawrence E. Quinn, Jr., 58, of Hilliard, Ohio, who was sentenced to one day in prison, two years of supervised release and a $5,000 fine; and
• Director of Technical Services Jason T. Joyce. 47, of Dublin, Ohio, who was sentenced to 24 months of probation and a $5,000 fine.

According to court documents, the four conspired to set up three fake companies using aliases – which they supported using bogus email addresses and addresses, pre-paid telephones and pre-paid credit cards – to enter into service support contracts with Sun and Oracle for a single server.

The support contracts gave the four defendants credentials for Sun’s and Oracle’s databases, and allowed them to download Sun’s and Oracle’s intellectual property without detection. The intellectual property included firmware patches and updates for various Sun or Oracle hardware products, or operating system patches and updates for various versions of Sun’s and Oracle’s Solaris operating system.

The four used the fraudulently obtained intellectual property to support at least 500 TERiX customers, who did not know about the fraud. A statement of facts filed with the plea agreements cites more than 2,700 separate downloaded pieces of intellectual property between 2010 and 2014.

The primary purpose of the conspiracy was to fraudulently obtain intellectual property worth millions of dollars and then use the intellectual property to support unwitting TERiX customers, and for their own personal benefit.

“As the head of TERiX’s executive management team and 70 percent co-owner of the company, Appleby was responsible for all aspects of the business,” U.S. Attorney Glassman said. “He designed the conspiracy and its evolution over almost 10 years, and understood and directed all aspects of the criminal activity. As the scheme was uncovered, he instructed other company employees to devise ways to avoid detection.”

Glassman commended the investigation by the FBI and Assistant United States Attorney Jessica H. Kim who is representing the United States in the case.

# # #

COLUMBUS, Ohio – Dezjuan O. Myers, 21, of Canal Winchester, Ohio, was arrested today and charged with interstate robbery, brandishing a firearm during a crime of violence and possessing a firearm after being convicted of a felony.

Myers is scheduled to appear for arraignment at 2:30pm today before U.S. Magistrate Judge Kimberly A. Jolson.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kim Jacobs announced the charges.

According to an affidavit filed in support of the criminal complaint, on at least three occasions in March 2018, Myers robbed individuals at gunpoint after agreeing to purchase items from the victims on the app Let Go and on Craigslist.

On March 15, March 24 and March 29, it is alleged that Myers met with separate victims in the parking lot of a church on Gender Road to buy XBOX and Playstation gaming systems posted on Let Go and Craigslist.

Each time, Myers asked the seller victims to go to his house nearby to test that the systems worked. As the victims began to walk with him, he allegedly retrieved a shotgun stashed in a pile of leaves and pointed it at the victims, telling them to leave their items and walk away. On March 29, Myers retrieved the shotgun near a house on Laburnum Drive. Columbus police responded to the scene of each incident, and officers learned the home on Laburnum Drive was the residence of Myers’s grandfather.

Interstate robbery is a federal crime punishable by up to 20 years in prison. Brandishing a firearm during a crime of violence carries a potential sentence seven years to life in prison. Possessing a firearm after being convicted of a felony is a crime punishable by up to 10 years in prison.

U.S. Attorney Glassman commended the investigation of this case by the ATF and Columbus Division of Police, as well as Assistant United States Attorney David J. Bosley, 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.

# # #

DAYTON – A federal grand jury has charged Tyler Ulm, 23, of Dayton, with production and other crimes related to child pornography.

Law enforcement officials ask anyone in the public with information about other potential victims related to this case to contact the FBI at 513-421-4310.

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 Ohio Attorney General Mike DeWine announced the charges.

The indictment charges Ulm with seven counts of producing child pornography over the course of at least one year with at least two minor victims.

It is also alleged that Ulm advertised, distributed, received and possessed child pornography, as well as attempted to travel with the intent of engaging in illicit sexual conduct.

Finally, Ulm allegedly committed a felony offense involving a minor while being required to register as a sex offender.

Producing child pornography is a crime punishable by 15-30 years in prison. Attempting to travel for the purpose of engaging in illicit sexual conduct is a crime punishable by up to 30 years in prison. Advertising child pornography carries a potential penalty of 15 to 30 years in prison. Distributing and receiving child pornography are each crimes punishable by five to 20 years in prison, and possessing child pornography carries a potential maximum penalty of 20 years in prison. Committing a felony offense involving a minor while being required to register as a sex offender adds 10 years in addition to any other sentence imposed.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Ohio Attorney General’s Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney SaMee Harden, 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 – John Anderson Rankin, 55, of Circleville, Ohio, was sentenced in U.S. District Court to 60 months in prison for tax crimes that included a total tax loss of approximately $8.1 million. Rankin was also ordered to pay restitution in the amount of $7.1 million.

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, Cincinnati Field Office announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.

Rankin was convicted of 17 tax-related charges following a two-week trial in September 2017.

A federal grand jury indicted Rankin in July 2015 with seven counts of failing to account for and pay over employment taxes to the Internal Revenue Service (IRS), six counts of willfully filing false federal individual income tax returns with the IRS, three counts of willfully filing false federal corporate income tax returns with the IRS and one count of obstructing and impeding the due administration of the IRS.

According to court documents and testimony, Rankin operated a number of Circleville-based businesses, including Connectivity Systems, Inc., a mainframe software company that provides internet protocol development and servicing. Rankin Enterprises, LLC was a shell corporation that included the Circleville Movie House, Screening Room, J.R. Hooks Café and Tootles Pumpkin Inn. Rankin also owned the Tuscan Table, an Italian restaurant in downtown Circleville.

Between June 2008 and April 2011 Rankin, conducting business as Rankin Enterprises and Tuscan Table, failed to account for and pay over to the IRS all federal income and FICA taxes.

Rankin also filed false Amended U.S. Individual Income Tax Returns with the IRS for the 2005, 2006, 2007, 2008 and 2009 income tax years.  He claimed a corrected adjusted gross income amount of a negative $1.7 million, when in actuality his corrected adjusted gross income was more than $8.9 million.

In 2010, Rankin filed a false individual income tax return that reported an adjusted gross income of nearly $27,000, when his actual gross income was nearly $1.6 million.

In addition, Rankin filed false U.S. Corporation Income Tax Returns with the IRS for Connectivity Systems Incorporated for the 2008, 2009 and 2010 income tax years. These false forms claimed a fraudulent accelerated Research & Development Credit in the amount of $1.7 million against the corporate taxes due and owing of Connectivity Systems Incorporated.

Lastly, between January 2005 and July 2015 Rankin made false and misleading statements to agents of the IRS and concealed information from agents of the IRS.

“Rankin effectively robbed both the United States and his employees, and not only did he perpetrate this decade-long tax-fraud scheme, but he also introduced fake records at trial,” U.S. Attorney Glassman said. “The jury rightfully convicted him for his illegal conduct, and his sentence today reflects his continued disregard for the law.”

“The sentencing of Rankin is an important victory for America's taxpayers who play by the rules and have no tolerance for those who make up their own rules. This investigation serves to remind us that there is no such thing as free money and there are no awards or incentives for creativity when it comes to crime,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

U.S. Attorney Glassman commended the investigation of this case by IRS-Criminal Investigation, as well as Assistant United States Attorneys Daniel A. Brown and Noah R. Litton, who represented the United States in this case.

###

CINCINNATI – Brandon Spicer, 42, of Franklin, Ohio, pleaded guilty in U.S. District Court to one count of receipt of child pornography, a crime punishable by at least five years and up to 20 years in prison.                                                                                              

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 Field Division announced the plea entered today before U.S. District Judge Susan J. Dlott.

According to court documents, Spicer was identified during the course of a nationwide investigation into accessing child pornography that was available on a highly encrypted website known as “Playpen.” Users of the site had to take multiple steps to register for the site and to access the materials. The materials depicted extremely young children being sexually assaulted by adults – some in bondage, many violent.

Based on information received as a result of the “Playpen” investigation, agents searched Spicer’s home on July 9, 2015.  Agents found more than 600 images on Spicer’s computer and cellular phone depicting children under 12 years old being sexually assaulted and abused by adult men. 

Judge Dlott will schedule sentencing following an investigation by the court.

U.S. Attorney Glassman commended the investigation by the FBI, as well as Assistant United States Attorney Christy Muncy, who is representing the United States in this case. 

###

CINCINNATI – Jerry Wilkinson, 42, of Amelia, Ohio, pleaded guilty in U.S. District Court today to receiving and distributing child pornography by using a peer-to-peer file-sharing Internet application to locate, download, distribute and view it.                                                                                                

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 Field Division, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations, Amelia Police Chief Jeff Wood, Cincinnati Police Chief Eliot K. Isaac, Hamilton County Sheriff Jim Neil and agencies participating in the Regional Electronics Computer Investigations (RECI) Task Force announced the plea entered before U.S. District Judge Susan J. Dlott.

Wilkinson pleaded guilty to one count of receipt and distribution of child pornography, a crime punishable by at least five years and up to 20 years in prison. The law also requires him to pay restitution to the victims of the crime and to forfeit the computer equipment, storage media and files related to the crimes.

Court documents say Wilkinson committed the crimes between January and October 2017 when agents and task force officers arrested him. In the plea agreement, Wilkinson acknowledged that he had been viewing, downloading and trading child pornography over the past ten years. He possessed more than 500 videos and 8,000 images of child pornography when agents arrested him. Wilkinson also had printed images of child pornography which he printed at the public library from thumb drives he had containing the images.

Judge Dlott will schedule sentencing following an investigation by the court.

U.S. Attorney Glassman commended the investigation by the FBI, as well as Assistant United States Attorney Kyle Healey, who is representing the United States in this case. 

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CINCINNATI – The Justice Department filed a civil complaint today in U.S. District Court in the Southern District of Ohio alleging a Sedamsville landlord violated the Fair Housing Act by discriminating against female tenants.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, announced the filing against John Klosterman and his wife Susan Klosterman, both of Cincinnati.

 

According to the complaint, from 2013 to the present, John Klosterman owned or had an ownership interest in at least 55 residential properties in the Sedamsville neighborhood of Cincinnati. He controlled accepting or rejecting prospective tenants, settings rates for rent and security deposits, collecting rent, accepting requests for repairs and evicting tenants.

 

The complaint alleges Klosterman subjected female tenants of his properties to discrimination on the basis of sex, including severe, pervasive and unwelcome sexual harassment, on multiple occasions.

 

The conduct included unwelcome sexual advances, unwanted sexual text messages and photos, touching female tenants without their consent and offering to reduce the rent and overlook late or unpaid rent in exchange for sex.

 

The complaint further alleges that Klosterman evicted tenants or refused to make repairs for female tenants who refused the sexual advances.

 

Klosterman allegedly preferred renting to single female tenants and took adverse housing actions against female tenants upon learning that they were not single.

 

Finally, the complaint alleges he entered the homes of his female tenants without their consent and monitored their daily activities with cameras directed at their units and through other means.

 

“No woman should have to endure sexual harassment in order to remain in her home,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Sexual harassment in housing is unacceptable and illegal, and landlords should be on notice that the Justice Department will continue to vigorously enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for victims.”

 

“Fair housing is fundamental,” said U.S. Attorney Glassman. “No one should have to experience a landlord’s pervasive sexual harassment. That’s not only wrong, but also illegal under federal law. This office is committed to vigorously enforcing the protections guaranteed by the Fair Housing Act.”

 

U.S. Attorney Glassman commended Deputy Civil Chief Matthew J. Horwitz and Trial Attorney Kathryn Ladewski of the Department of Justice’s Civil Division Housing and Civil Enforcement Section, who are representing the United States in this case.

 

In October 2017, the Justice Department’s Civil Rights Division announced the Sex Harassment in Housing Initiative (SHI). The Initiative specifically seeks to increase the Department’s efforts to protect individuals from harassment by landlords, property managers, maintenance workers, security guards and other employees and representatives of rental property owners.

 

The Justice Department has filed or settled seven sexual harassment cases since January 2017, and has recovered over $1 million for victims of sexual harassment in housing.

 

Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct. The allegations must be proven in federal court.

 

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or operated by John or Susan Klosterman, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line:

 

• English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 9992 to leave a message; or
• Spanish language: Call 1-800-896-7743, then press 2 to continue in Spanish and select mailbox 6 to leave a message.

 

Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at fairhousing@usdoj.gov.

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CINCINNATI – A federal grand jury has charged Izmir Koch, 32, of Huber Heights, with violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act in an indictment unsealed today.

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 charges.

According to the indictment, on February 4, 2017, Koch was outside a Cincinnati restaurant with others when he allegedly yelled out asking if anyone outside the restaurant was Jewish.

A victim responded that he was Jewish and it is alleged that Koch then ran to the victim and punched him in the head. When the victim fell to the ground, Koch and others continued hitting and kicking him.

The victim sustained injuries from the attack, including rib contusions and a fracture of his orbital floor.

Koch was charged with one count of committing a hate crime, which is punishable by up to 10 years in prison. He was arrested this morning and appeared before U.S. Magistrate Judge Stephanie K. Bowman at 1:30pm.

“Physically attacking someone because you think he’s Jewish—or Christian or Muslim or any other religion—is a federal crime,” said U.S. Attorney Glassman. “This office prosecutes hate crimes.”

U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorney Megan Gaffney and Trial Attorney Gabriel Davis of the Civil Rights Division of the Department of Justice, who are prosecuting the case.

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

# # #

COLUMBUS, Ohio – Four Columbus men have been sentenced in U.S. District Court for crimes related to participating in a dog-fighting ring in central Ohio.

Charles A. Granberry, 42, was sentenced to 72 months in prison. Henry Gerard James Hill, Jr., 22, and Randall J. Frye, 59, were each sentenced to six months in prison. Dwayne T. Robinson, Jr., 34, was sentenced to three years of probation including six months of home confinement, 150 hours of community service and ordered to pay $3,700 in restitution.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, Midwest Region, U.S. Department of Agriculture Office of Inspector General, Columbus Police Chief Kim Jacobs, Franklin County Prosecuting Attorney Ron O’Brien, and Columbus Humane Executive Director Rachel D.K. Finney announced the sentences handed down by U.S. District Judge James L. Graham.

According to court documents, investigators discovered evidence at two houses in Columbus in March 2016 that indicated the houses were used to train, fight and sell dogs, including at least 20 fighting dogs in the rear yard of one house that were chained to heavy automobile axles buried in the ground. 

Officers subsequently executed search warrants on April 5, 2016 at five Columbus houses. Agents seized evidence including 46 dogs along with cages, treadmills, heavy chains and collars and other items. Agents found canine blood on the floor and walls of the basement of one home indicating that the area was used as a dog-fighting pit.

At the time of the search warrant, the Humane Society officials took extreme measures to ensure the safety of the seized dogs and the ASPCA provided animal behavioral specialists to conduct examinations of each dog. Some of the dogs reacted severely to loud noises and leashes during the examinations. For example, one dog latched on to a stuffed animal so aggressively that professionals had to cut the head off the toy.

Additionally, a large number of the dogs seized had a canine disease called Babesia Gibsoni, which results in anemia and ultimately death. The prevalence of the disease is unusually high in “bully breeds” used in dog-fighting operations through exposure to infected dogs’ blood and during non-sterile procedures such as tail docking, ear cropping and vaccinations of multiple animals with single needles.

Of the 46 dogs seized, specialists determined that 15 were eligible for placement in a shelter for adoption, and the remaining 31 dogs were euthanized for behavioral concerns or medical issues.

If you have information related to suspected dog-fighting activity, please call the Columbus Humane Cruelty Investigation Department at 614-777-7387 ext. 250.

U.S. Attorney Glassman commended the investigation by the USDA-OIG, Columbus Police, the Humane Society and the ASPCA, as well as Assistant U.S. Attorneys Jessica W. Knight and J. Michael Marous, and Franklin County Assistant Prosecutor Heather Robinson, who are representing the United States in this case.

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DAYTON – A federal grand jury has charged Shawn Bradley, 36, of West Milton, Ohio with producing child pornography in an indictment unsealed here today.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations and Miami County Sheriff Dave Duchak announced the charges.

According to the indictment, between May 2015 and February 2018, Bradley coerced a minor into engaging in sexually explicit conduct for the purpose of producing child pornography.

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

Bradley was arrested on February 28.

U.S. Attorney Glassman commended the investigation of this case by HSI and the Miami County Sheriff’s Office, as well as Assistant United States Attorney SaMee Harden, who is prosecuting the case.

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

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COLUMBUS, Ohio – William Hernandez Castillo, 26, and Citlaly Casillas, 22, both of Columbus, were each sentenced today in U.S. District Court for conspiracy to commit kidnapping following a failed drug transaction. Hernandez Castillo was sentenced to 48 months in prison and Casillas was sentenced to 42 months in prison.

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, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Gahanna Police Chief Dennis Murphy and Westerville Police Chief Joseph Morbitzer announced the sentence imposed today by U.S. District Judge James L. Graham.

According to the Statement of Facts in this case, Hernandez Castillo and Casillas conspired to kidnap an individual from April 4 through April 7, 2017.

In March 2017, the individual told Casillas that an associate of his wanted to buy one kilogram of cocaine. Casillas and Hernandez Castillo agreed to buy the drugs and intended to sell the cocaine for more than $30,000.

When the time came to complete the transaction on April 4, the associate took the cocaine without paying.

Hernandez Castillo then called the owner of the drugs, who was in Mexico, to discuss how to respond. The owner of the drugs told Hernandez Castillo to hold the individual responsible for his associate. The owner said if he did not receive the drugs or the money, he would send enforcers to deal with the individual and his family.

Following the phone call, Hernandez Castillo told the individual that he had to come with Hernandez Castillo and Casillas.

From April 4 through April 7, Hernandez Castillo and Casillas seized, confined and kidnapped the victim for ransom at their Columbus residence. Hernandez Castillo told the victim that people from Mexico would harm his family if the drug owner did not receive the drugs or money.

During his confinement, Casillas told the victim stories of a 2015 fatal shooting at La Michoacana market in Columbus in order to scare him and keep him from leaving the residence. She joked that Hernandez Castillo would cut off one of the victim’s fingers if he left.

After contacting his girlfriend and mother, the victim was driven by Hernandez Castillo on April 7 to a location in Columbus, where they believed ransom money was waiting. When the victim arrived at the drop location, law enforcement secured him.

Casillas was arrested during the execution of a search warrant at her residence on April 17. Hernandez Castillo was arrested the same day, and the two have remained in custody since.

“The defendants held a victim ransom for days, communicating threats of violence and invoking an infamous murder at La Michoacana market in Columbus in 2015,” U.S. Attorney Glassman said. “They also made clear that they were taking orders from Mexico, suggesting these threats were backed by the full resources of an international drug-trafficking organization.”

U.S. Attorney Glassman commended the investigation of this case by the FBI, DEA, Gahanna Police and Westerville Police, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.

# # #

CINCINNATI – Fred Aundraus Gaston III, 44, of Cincinnati, pleaded guilty in U.S. District Court to a crime related to using a fake identity since 1999.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ben Sides, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service, Chicago Field Office announced the plea entered into before U.S. District Judge Timothy S. Black.

According to the Statement of Facts, beginning in 1999, Gaston created the identity and assumed the alias “Brandon Jordan Thomas.” Specifically, on May 18, 1999, he applied for a delayed birth certificate in Illinois using the made-up name. In June of that year, the state of Illinois issued the delayed birth certificate.

The next month, Gaston applied for a Social Security card using the name “Brandon Jordan Thomas” and was issued a new Social Security number. He obtained replacement Social Security cards in the fake name in August 1999, April 2007, November 2009 and June 2015.

Gaston also obtained an Ohio driver’s license under the alias and compiled a credit history in that name as well.

In February 2015, Gaston applied for a U.S. Passport at the post office in Milford, Ohio under the false identity and his own photograph. The application was ultimately denied because Gaston failed to respond to a follow-up request from the State Department to submit additional documentation to support the application.

In August 2017, when federal agents visited Gaston’s home, he identified himself as “Shawn Carter.” He was wearing a Rich Snob Entertainment t-shirt, the same company identified as the place of employment on both the “Brandon Jordan Thomas” passport application and a passport application that Gaston submitted under his true identity on a different date.

Gaston pleaded guilty to one count of making a false statement in a passport application. The parties involved in this case have recommended a sentence of one year of probation, and Judge Black will consider that recommendation at a future sentencing hearing. The defendant also agrees to forfeit the Ohio driver’s license, State of Illinois Delayed Record of Birth and Social Security card all in the name of “Brandon Jordan Thomas.”

U.S. Attorney Glassman commended the investigation of this case by the State Department and Special Assistant United States Attorney Timothy Landry, who is representing the United States in this case.

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DAYTON – Lord Tyrone Al-Ahmin, 43, was sentenced in U.S. District Court to 180 months in prison and a seven-year term of supervised release for transporting women interstate to engage in prostitution.

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 Dayton Police Chief Richard S. Biehl announced the sentence handed down today by U.S. District Judge Timothy S. Black.

According to court documents, the FBI received information that a number of women engaged in prostitution at Al-Ahmin’s direction and control since 2005. Victims told law enforcement they were physically assaulted and threatened by Al-Ahmin.

One victim said she met Al-Ahmin in Dayton, when Al-Ahmin told the female he was a pimp and traveled around the country with women who engaged in prostitution. He told the victim she could work for him but she would be required to provide him with all of her prostitution proceeds. In exchange, he would provide her with food, clothing and heroin.

Al-Ahmin regularly carried a handgun and threatened to kill the female on a daily basis. He pointed the gun at her head and hit her in the face with the gun. He also told the female he had killed somebody in the past.

A second female victim met Al-Ahmin when he posed as a prostitution client and responded to her Backpage.com advertisement. Al-Ahmin picked the female up in his vehicle in Dayton, but rather than engage in any sexual activity, he purchased crack cocaine for the victim to use and drove her to Wisconsin.

He physically assaulted her on nearly a daily basis and threatened to kill her. He hit her, fractured her ribs, held a knife to her face and urinated in her mouth. Al-Ahmin also had non-consensual and aggressive sex with her. He told this victim he had killed four people in the past.

The Statement of Facts details that from August to October 2014, Ah-Ahmin transported at least three adult females from Dayton to other cities in Ohio, Minnesota, Wisconsin, Iowa, Texas and elsewhere to engage in prostitution.

In many of these cities, Al-Ahmin posted advertisements on Backpage.com to solicit prostitution clients. He sometimes paid for hotel rooms for use in servicing prostitution clients. Al-Ahmin was paid the money that the females received for sexual acts during their travels.

“The horrible facts of this case illustrate the reality of sex trafficking,” said U.S. Attorney Glassman.

Al-Ahmin pleaded guilty in June 2016 to three counts of transporting interstate for the purpose of prostitution. He was arrested by FBI agents in Las Vegas in January 2015.

U.S. Attorney Glassman commended the cooperative investigation by the FBI and Dayton Police Department, as well as Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case. 

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DAYTON – A federal grand jury has charged six individuals with crimes related to the August 2017 murder of Robert Caldwell in an indictment returned here today. Two defendants are charged with death-penalty-eligible crimes.

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, Riverside Police Chief Frank Robinson and Sugarcreek Township Police Chief Michael Brown announced the charges.

The FBI also announced a $15,000 reward for information leading to the recovery of 14-year-old Jacob Lee Caldwell and the arrest and conviction of anyone involved in his disappearance.

Those charged in the indictment include:

Name

Also Known As

Age

City of Residence

*Sterling H. Roberts

 

34

Spartanburg, S.C.

*Tawnney M. Caldwell

Tawnney Thomas

33

Centerville, Ohio

Chance P. Deakin

Chance Roberts

25

Dayton, Ohio

Christopher C. Roberts

 

30

Dayton, Ohio

James T. Harmon

 

55

Burlington, Ky.

Chandra D. Harmon

 

54

Burlington, Ky.

* Charged with murder

According to the six-count indictment, from August 1 to August 5, Sterling Roberts cyberstalked Robert Caldwell via cell phone through the assistance of Tawnney Caldwell.

On August 15, Sterling Roberts allegedly used a firearm that he possessed illegally and traveled interstate to stalk and murder Robert Caldwell. Tawnney Caldwell, Deakin, Christopher Roberts and James Harmon are all charged with aiding and abetting the illegal gun possession.

It is alleged that Tawnney Caldwell obstructed justice by destroying the contents and data of a cell phone on that same day. 

Tawnney Caldwell and Chandra Harmon also allegedly conspired to intimidate and threaten witnesses related to the case in November 2017.

Crimes charged in the indictment include:

Crime

Potential Sentence

Stalking – using mail, computer, cell phone

Up to life in prison

Felon in possession of a firearm

Up to 10 years in prison

Stalking – traveling interstate

Up to life in prison

Discharging a firearm during and in relation to a crime of violence

Death penalty or up to life in prison

Tampering with evidence

Up to 20 years in prison

Tampering with a witness by intimidation

Up to 20 years in prison

Five of the defendants were arrested on February 28. Sterling Roberts is currently in state custody in South Carolina.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Riverside and Sugarcreek Township police departments, as well as Assistant United States Attorneys Sheila G. Lafferty and Amy M. Smith, who are prosecuting the case.

If you have any information related to the whereabouts of Jacob Caldwell, please call the Sugarcreek Township Police at 937-310-3200 or the FBI at 513-421-4310.

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

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