Southern District of Ohio

CINCINNATI – A federal grand jury has charged sixteen individuals with charges related to distribution of fentanyl, maintaining drug-involved premises, firearms offenses and money laundering in a 45-count indictment filed here today.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio State Highway Patrol Superintendent Col. Paul A. Pride and Cincinnati Police Chief Eliot K. Isaac announced the indictment.

 

Those charged include:

Name

Also Known As

Age

City of Residence

*Keysean Dearis Dickey

“Mike”

25

Mason, Ohio

Edmond Christian Hurt

“Eddie”

24

Cincinnati

Rajah Amire Swain

 

21

Mason, Ohio

Chrisette Camilla Wade

 

25

Cincinnati

Ari Naiem Hodges

“Big Mike, Fat Mike, Bundles”

23

Cincinnati

Da’Marco Martez Browner II

“Baby D, Kid”

24

Fairfield, Ohio

Dominic Dashawn Davis

 

26

Cincinnati

Chaz Niko Jones

“Juice, Z”

26

Cincinnati

Christopher Javar Mathews

“Jay, Smash”

29

Cincinnati

Kiarra C. Thomas

 

27

Cincinnati

Mykeal Dawshawn Parker

 

24

Cincinnati

Devonte Shaunquinn Walker

 

23

Cincinnati

*Damyia L. Engram

 

31

Cincinnati

Thomesha Walker

 

25

Cincinnati

Shonda Denise Jones

 

44

Cincinnati

Sherica Lynnae Shields

 

24

Cincinnati

 

*Two defendants – Dickey and Engram – are currently fugitives.

 

The indictment alleges that the drug trafficking organization distributed more than 400 grams of fentanyl from September 2016 until agents executed search and arrest warrants on June 26, 2017.

 

Each of the defendants is charged with participating in a drug distributing conspiracy through various roles such as leader, supplier of drugs, packager, holder, intermediary, helper, stash house operator and launderer of drug proceeds.

 

Text messages sent to various defendants’ cell phones revealed communications asking about the quantity and quality of fentanyl. “Customers” allegedly texted the defendants complaining about getting “shorted” and asking for “fronts” on drugs.

 

For example, on August 13, 2016, Mathews received a text message stating “Chris ur … scale is off. I can take my grand a week else where!”

 

A message received a month later stated: “bro I cant barely move im so sick but no money yet today. Can I get a little bit on credit?”

 

Walker received a similar message from a user saying the user was “going out of town” and “just don’t want to be sick.”

 

Defendants also allegedly received text messages complaining about the quality of the drugs, including messages like “this…getting supppeerr weak btw kinda sucks a lil” and “…that was pure garbage. Did absolutely nothing. Big waste of $70! Pure waste.”

 

The indictment alleges multiple other conversations between defendants discussing drug transactions, undercover police, surveillance and other dealers selling bad dope and its effect on their business.

 

“This indictment charges sixteen people in a conspiracy to traffic fentanyl in and around Cincinnati over the last nine months,” said U.S. Attorney Glassman. “Six of the defendants are also charged with laundering thousands of dollars of their drug money by renting dozens of cars, which were in turn used to support the drug-trafficking operation.”

 

U.S. Attorney Glassman commended the investigation of this case by the DEA, ATF, Ohio State Highway Patrol and Cincinnati Police, as well as Assistant United States Attorney Karl P. Kadon, 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 – The Vice President of Porter Drywall and Black Star Drywall, Inc. was sentenced in U.S. District Court to five years of probation and ordered to pay more than $25,000 in restitution to the IRS for filing a false income tax return.

 

As a condition of his probation, Robert E. Porter, 53, of Westerville, Ohio, must ensure that Porter Drywall subscribes to proper governmental forms and otherwise complies with all tax, labor and immigration laws with respect to its employees.

 

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, James Vanderberg, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Brad Geary, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General, and Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations, announced the sentence handed down yesterday by U.S. District Judge Michael. H. Watson.

 

According to court documents, Porter was Vice President of the companies between 2009 and 2013. Porter Drywall contracted to provide drywall installation and drywall supplies to residential and commercial contractors in Central Ohio. As well as being Vice President, Porter was a jobsite supervisor and estimator for Porter Drywall’s private and corporate clients.

 

Acting on behalf of Porter Drywall, Porter provided estimates for certain projects and assigned Porter Drywall’s employees and/or subcontractors to complete the work. He diverted numerous customer payments to his personal bank account while Porter Drywall incurred all of the costs for the projects – including labor and materials.

 

Shannon C. Boston, 44, of Sunbury, Ohio, was also charged in relation to this case and pleaded guilty to one count of failing to account for and pay over employment taxes to the IRS. Boston was sentenced on April 20, 2017 to five years of probation and was ordered to pay nearly $93,000 in restitution to the IRS.

 

While Boston was the Chief Financial Officer of Porter Drywall, Inc. in 2013, she submitted employer’s quarterly income tax returns for the company but failed to pay over their employees’ federal withholdings and Federal Insurance Contributions Act (FICA) – which includes Social Security and Medicare withholdings amounts – for the fourth quarter of 2013, totaling $120,406.

 

"Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone tries to manipulate our nation's tax system," 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, U.S. Department of Labor, U.S. Department of Housing and Urban Development, and Homeland Security Investigations, and Assistant U.S. Attorney Daniel A. Brown, who prosecuted the case.

 

# # #

CINCINNATI – U.S. Attorney Benjamin C. Glassman announced today that in light of the Hamilton County Prosecutor’s decision not to pursue a second retrial of Raymond Tensing, the United States Attorney’s Office will now undertake to acquire and review the evidence from the state court trials in order to assess whether there are possible federal civil rights offenses warranting investigation and potential prosecution.

 

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COLUMBUS, Ohio – John Richard Blazer, 71, of Marion, Ohio, was sentenced in U.S. District Court to 33 months in prison for orchestrating multiple investment fraud schemes. Blazer pleaded guilty to wire fraud and money laundering in December 2016.

 

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

 

According to the Statement of Facts in this case, from approximately January 2011 until August 2013, Blazer owned and operated several businesses in central Ohio, including The Ohio Company and The Ohio Company Loan Fund. He was also a partner in The Ohio Heritage Fund.

 

Blazer recruited investors by promising them that their money would be invested in one of his businesses, or in a real estate fund to purchase and rehabilitate homes in central Ohio, which would then be leased through a Section 8 housing program with the government, or in a gold mining operation in Africa that had the potential to produce significant amounts of gold and diamonds.

 

Rather than investing the victims’ funds, Blazer used the money to pay for personal expenses and to partially re-pay other victims.

 

In total, he received at least $1 million from approximately 21 victims.

 

As part of his sentence, Blazer was also ordered to pay full restitution to the victims.

 

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

 

# # #

Ohio based Foundations Health Solutions Inc. (FHS), Olympia Therapy Inc. (Olympia), and Tridia Hospice Care Inc. (Tridia), and their executives, Brian Colleran (Colleran) and Daniel Parker (Parker), have agreed to pay approximately $19.5 million to resolve allegations pertaining to the submission of false claims for medically unnecessary rehabilitation therapy and hospice services to Medicare, the Department of Justice announced today.

 

“Clinical decisions should be based on patient needs rather than corporate profits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement reflects the Department’s continuing commitment to safeguarding patients and the Medicare system.”

 

FHS is the corporate successor to Provider Services Inc. (PSI), which provided management services to skilled nursing facilities. In 2010, PSI was merged into BCFL Holdings Inc. (BCFL), which was renamed FHS in 2013. Olympia provided rehabilitation therapy services to patients at the skilled nursing facilities managed by PSI and BCFL. Tridia Hospice Care Inc. provided hospice care services. Colleran and Parker partially controlled or owned PSI, BCFL, FHS, Olympia, and Tridia between 2008 and 2013.

 

The settlement resolves allegations that, from January 2008 through December 2012, Olympia and PSI/BCFL submitted, or caused the submission of, false claims to Medicare for medically unnecessary rehabilitation therapy services at 18 skilled nursing facilities. The government contended that the therapy services were provided at excessive levels to increase Medicare reimbursement for those services.

 

The settlement further resolves allegations that, from April 2011 through December 2013, Tridia submitted false claims to Medicare for hospice services provided to patients who were ineligible for the Medicare hospice benefit because Tridia failed to conduct proper certifications or medical examinations. The settlement also resolves allegations that from January 2008 through December 2012, Colleran and Parker solicited and received kickbacks to refer patients from skilled nursing facilities managed by PSI or BCFL to Amber Home Care LLC, a home health care services provider.

 

“This is one of the largest nursing home operations in Ohio,” said U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio. “It is unacceptable for an entity entrusted to care for our most vulnerable and elderly citizens to make decisions based on profit, not quality of care. Subjecting the elderly to inappropriate levels of therapy can be physically harmful, and failing to properly certify and re-certify hospice patients can have a devastating impact on the patients and their families.”

 

As part of the settlement, FHS and Colleran have entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG). The CIA is designed to increase the accountability and transparency of FHS and Colleran so that they will avoid or promptly detect future fraud and abuse.

 

“Medicare providers have a legal and moral obligation to provide only those services that are medically necessary and to ensure that claims seeking payment accurately reflect the services that are actually provided,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG). “The misrepresentation or falsification of those claims not only violates provisions of the False Claims Act but the public’s trust. The OIG will continue to aggressively investigate allegations of potential violations of this nature.”

 

The settlement resolves allegations filed in two separate lawsuits by Vladimir Trakhter, a former Olympia employee, and Paula Bourne and La’Tasha Goodwin, former Tridia employees, in federal court in Columbus, Ohio. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Mr. Trahkter will receive approximately $2.9 million and Ms. Bourne and Ms. Goodwin collectively will receive $740,000.

 

The settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Southern District of Ohio, with assistance from HHS-OIG, the HHS Office of Counsel to the Inspector General, and the Ohio Medicaid Fraud Control Unit.

 

These cases are captioned United States ex rel. Trakhter v. Provider Services, Inc., n/k/a BCFL Holdings, Inc., et. al., Case No. 1:11-CV-217, and United States ex rel. Bourne and Goodwin v. Brian Colleran, et. al., Case No. 1:12-CV-935. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

COLUMBUS, Ohio – A federal grand jury has returned separate indictments charging two central Ohio health care companies and the people who own them with health care fraud. One company allegedly billed government insurance programs for unnecessary medical procedures and the other is accused of billing government insurance programs for pain and scar creams that recipients said they never requested or wanted.

 

The two Ohio cases are part of a nationwide health care fraud takedown announced today by Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Tom Price, M.D.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services; Office of Inspector General – Chicago Region; the Medicaid Fraud Control Unit in Ohio Attorney General Mike DeWine’s Office; Angela Byers, Special Agent in Charge, Federal Bureau of Investigation Cincinnati; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA); and Steven W. Schierholt, Executive Director of the Ohio Board of Pharmacy announced the indictments today as part of a nationwide crackdown on fraudulent health care providers.

 

One indictment alleges that Salim Dahdah who owns and operates the Ohio Institute of Cardiac Care (OICC) in Springfield, and his wife Cindy Dahdah who owns Accubil, a company that handles the billing for OICC, received more than $2 million from Medicare and Medicaid for medically unnecessary nuclear stress tests and medically unnecessary coronary interventions such as pacemaker insertion and stent procedures. The indictment charges them with conspiracy to commit health care fraud and health care fraud, crimes punishable by up to ten years in prison, and health care false statements a crime which carries a maximum sentence of five years in prison.

 

The grand jury also indicted Darrell Bryant and Gifty Kusi, a husband and wife who own and manage Health & Wellness Pharmacy in Dublin. Kusi and Dr. Jornel Rivera owned and operated Health & Wellness Medical Center, also in Dublin. The indictment alleges that they fraudulently received more than $3 million from the Ohio Department of Medicaid and Medicaid Managed Care Organizations (MCOs) through multiple schemes including billing for compound creams that were not provided or not requested by patients, billing for counseling services that were not provided or billing for group counseling sessions as individual counseling services. The indictment charges all three defendants with conspiracy to commit health care fraud and health care fraud.

 

“Health care fraud creates victims out of patients, providers, and taxpayers,” U.S. Attorney Glassman said. “It’s a crime that breaks the bonds of trust between doctor and patient, and between government and the people, just for the sake of personal greed.”

 

“The charges announced today should send a strong message to criminals that theft from vital health care programs will not be tolerated”, said SAC Pugh of HHS Office of Inspector General. “The OIG and our law enforcement partners will continue to be vigilant in our efforts to protect tax payer dollars that are intended to aid our most vulnerable citizens.”

 

“Both of these cases are egregious,” said Attorney General DeWine. “In the OICC case, the investigation found that patients underwent dangerous and completely unnecessary medical procedures, and in the Health and Wellness Pharmacy case, the investigation found that people who legitimately needed drug treatment and counseling weren’t getting it – even though the company charged for it. In the midst of the opioid epidemic in Ohio, it is critical that healthcare providers are rendering services that are meant to help Ohioans struggling with addiction.”

 

“Some of the charges described include medically unnecessary procedures performed which could cause patient harm. This is the most egregious form of health care fraud”, said SAC Byers of the FBI, adding that “Health care fraud contributes to rising health care costs for everyone.”

 

Today’s nationwide enforcement action is the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.

 

U.S. Attorney Glassman commended the investigation of this case by the HHS-OIG, Ohio Attorney General Mike DeWine’s Medicaid Fraud Control Unit and IRS Criminal Investigation, as well as Assistant United States Attorney Kenneth Affeldt and Special Assistant United States Attorney Maritsa Flaherty, who are representing the United States in this case.

 

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

CINCINNATI– A federal grand jury has charged Brian D. Jones, 38, of Vevay, Indiana with defrauding investors in his livestock brokerage business.

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 Office, announced the indictment which was unsealed today.

The indictment alleges that Jones operated a business buying bull calves from dairy farms in Wisconsin and selling them to cattle ranches in Texas and Missouri. He began soliciting investors in 2015, promising sizable returns for the investments.

Rather than invest the funds, the indictment alleges, Jones used the funds for his personal benefit such as gambling at casinos. The indictment also alleges that Jones used the investment funds to pay “returns” back to earlier investors as if the funds had actually generated income through investment in his business. By the end of 2015, the indictment says, Jones had squandered funds from the cattle purchasers and was in debt with his suppliers and purchasers. Investigators are still calculating the number of investors and the amount of money involved in the alleged fraud.

“The indictment alleges that Jones fabricated bank documents to show that he had sizable business deposits that would soon be ‘released’ by the bank,” U.S. Attorney Glassman said. “He also allegedly sent checks to investors including some in the Southern District of Ohio for investment returns, only to have the checks bounce due to insufficient funds in his account.”

Jones faces four counts of wire fraud, each punishable by up to 20 years in prison and a $250,000 fine if he’s convicted. The indictment also charges him with four counts of money laundering. Three are punishable by up to ten years in prison. One money laundering charges carries a potential sentence of 20 years in prison. Two additional counts seek forfeiture of all property and proceeds of any crimes of which Jones is convicted.

FBI agents arrested Jones in southern Indiana today. Jones appeared U.S. Magistrate Judge Stephanie Bowman for an initial appearance and to schedule further court dates.

U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorney Timothy S. Mangan, who is prosecuting the case.

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

CINCINNATI – Enson Trading LLC, which does business as Eternal Food Service, pleaded guilty in U.S. District Court to failing to file required IRS forms for cash transactions exceeding $10,000, and to violating Federal Motor Carrier Safety regulations.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Thomas J. Ullom, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, and Angela Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Field Office, announced the pleas entered today before U.S. District Judge Timothy S. Black.

 

According to the Statement of Facts in this case, Enson is a Lockland-based wholesale food storage facility and distributor to primarily Asian restaurants in Ohio and nine other states. Many of the company’s customers pay in cash. Between October 2010 and June 2012, the company failed to file a federal Form 8300 for 41 cash transactions totaling $564,202.23. Federal laws and regulations require every person engaged in a nonfinancial trade or business that receives cash in excess of $10,000 to file the form within 15 days of receipt of the cash.

 

The company also pleaded guilty to conspiracy to continue operation after imposition of an out-of-service order from the Federal Motor Carrier Safety Administration (FMCSA). In June 2010, FMCSA conducted a compliance review of the trucks the company used to distribute its products in Ohio and out of state and issued the company an unsatisfactory safety rating based upon critical violations of several regulations. FMCSA gave the company 60 days to address the violations or they would receive an out-of-service order. Eight days before the company’s trucking operations were to be put out of service, the company registered and incorporated under a different name. The company did that five more times between 2010 and 2014, using the names Heng Hua, National Trucking, Eternal Trading Corporation, Aspiron and FC Logistics.

 

Terms of the plea agreement call for the company to serve three years of probation, pay a $525,000 fine, and forfeit $215,012.55. Enson Trading, LLC manager Qing Xia Zheng entered the plea on behalf of the company.

 

U.S. Attorney Glassman commended the investigation of this case by the IRS, the U.S. Department of Transportation Office of Inspector General and the FBI, and District Criminal Chief Kenneth L. Parker, who is representing the United States in this case.

DAYTON, OHIO – The Civil Rights Division of the Justice Department and the U.S. Attorney’s Office for the Southern District of Ohio announced today that they have completed a thorough, independent investigation into the fatal shooting of John Crawford III on August 5, 2014, by Beavercreek Police Officer Sean Williams at the Wal-Mart in Beavercreek, Ohio. This investigation revealed that the evidence is insufficient to prove, beyond a reasonable doubt, that Officer Williams violated federal civil rights laws. Accordingly, the Civil Rights Division of the Justice Department and U.S. Attorney’s Office for the Southern District of Ohio will not pursue federal criminal civil rights charges against Officer Williams.

 

Justice Department officials have notified Mr. Crawford’s family of this decision.

 

The investigation was conducted by career investigators and prosecutors, and included a review of voluminous materials, including the investigative reports generated by the Beavercreek Police Department and the Ohio Bureau of Criminal Investigation; forensic evidence reports; the autopsy report; photographs of the crime scene; toxicology reports; and EMS reports. Federal officials collected and carefully analyzed all available footage from Wal-Mart’s in-store video surveillance system using resources at the FBI laboratory in Quantico, Va. Prosecutors also obtained assistance from an independent crime scene reconstruction expert to aid in understanding the exact perspectives held by the officers who confronted Mr. Crawford. In addition, the FBI conducted its own interviews of relevant witnesses, including interviews with personnel at the Beavercreek Police Department who were responsible for training Officer Williams.

 

In conducting the review, federal authorities were tasked with determining whether Officer Williams violated federal law by willfully using unreasonable force against Mr. Crawford. Under the applicable federal criminal civil rights statute, prosecutors would be required to establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived Mr. Crawford of a constitutional right. To establish willfulness, federal authorities would be required to show that the officer acted with the deliberate and specific intent to do something the law forbids. This is one of the highest standards of intent imposed by law. Mistake, misperception, negligence, necessity, or poor judgment are not sufficient to establish a federal criminal civil rights violation.

 

Based on a legal analysis of the investigative materials, the Civil Rights Division and the U.S. Attorney have concluded that there is insufficient evidence to establish that Officer Williams acted with the requisite criminal intent necessary to pursue a federal prosecution. To establish that Officer Williams acted willfully, the government would be required both to disprove his stated reason for the shooting – that he was in fear of death or serious bodily injury – and to affirmatively establish that Officer Williams instead acted with the specific intent to violate Mr. Crawford’s rights. The evidence here simply cannot satisfy those burdens. Accordingly, the review into this incident has been closed without prosecution.

 

The Civil Rights Division, the U.S. Attorney’s Office, and the FBI are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.

CINCINNATI – Three former employees of Evans Landscaping pleaded guilty in U.S. District Court to charges related to defrauding the City of Cincinnati and other public entities including universities and numerous school districts through fraudulent small business and minority business contracts.

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 Office, and Ohio Attorney General Mike DeWine announced the pleas entered today before U.S. District Judge Michael R. Barrett.

Maurice Patterson, former CFO of Evans Landscaping, and Michael Moeller, former manager at Evans Landscaping, each pleaded guilty to one count of conspiracy to commit wire fraud. Conspiracy to commit wire fraud is punishable by up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 and mandatory restitution.

John Dietrich, former CFO of Evans Landscaping, pleaded guilty to one count of misprision of a felony. Misprision of a felony carries a maximum sentence of three years in prison, up to one year of supervised release, a fine of up to $250,000 and mandatory restitution.

Documents filed with their guilty pleas say Patterson and Moeller conspired with others between 2008 and 2014 to create a company, Ergon Site Construction, LLC, to serve as a fraudulent Small Business Enterprise (SBE) and Minority Business Enterprise (MBE) company for the benefit of Evans Landscaping in obtaining public contracts. Dietrich became aware of the conspiracy and scheme to defraud and helped conceal the crime in 2013.

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

COLUMBUS, Ohio – Ronald Allen Meadows, 46, of Chillicothe, Ohio was sentenced to 120 months in prison for illegally possessing firearms, including machine guns, and dealing heroin from his house.

 

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), Ross County Sheriff George W. Lavender and the U.S. 23 Pipeline Major Crimes Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus Jr.

 

Undercover task force officers bought drugs at Meadows’ Wilson Run Road house in 2015 after receiving complaints about drug trafficking taking place there. Agents executed two search warrants at Meadows’ home in 2016, seized 40 firearms including two machine guns, and almost 90 grams of heroin. ATF agents and task force officers arrested Meadows in August 2016 following a grand jury indictment.

 

Meadows pleaded guilty on March 16, 2017 to three counts of possession of a firearm by a convicted felon, two counts of possession of a machine gun and one count of possession with intent to distribute heroin.

 

“There’s one less heroin dealer on the streets in Ross County today because people came forward and worked with law enforcement,” U.S. Attorney Glassman said. “The machine guns the agents seized also show that drugs and violence continue to be a deadly duo.” Glassman also commended the investigation by the U.S. 23 Pipeline Major Crimes Task Force and the ATF. Glassman also commended Assistant U.S. Attorney Timothy D. Prichard who represented the United States in this case.

Aaron Travis Daniels, 20, aka Harun Muhammad, aka Abu Yusef, of Columbus, Ohio, pleaded guilty to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of Title 18, U.S. Code, Section 2339B.

Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, and agencies participating in the Southern Ohio Joint Terrorism Task Force (JTTF) made the announcement. The plea was entered before Chief U.S. District Judge Edmund A. Sargus Jr.

“Daniels admitted that he attempted to travel abroad to provide material support to ISIS,” said Acting Assistant Attorney General Boente. “Identifying, thwarting and holding accountable individuals who attempt to provide material support to foreign terrorist organizations is a top priority of the Department of Justice.”

“This case demonstrates how terrorist activities abroad can reach into our local communities,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”

JTTF agents arrested Daniels on Nov. 7, 2106, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on Nov. 10, 2016. Daniels has been in custody since his arrest.

Daniels faces a maximum sentence of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

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

This case is being prosecuted by Assistant U.S. Attorneys Jessica W. Knight and Jessica Kim, and Special Assistant U.S. Attorney Joseph Gibson of the Southern District of Ohio, and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.

COLUMBUS, Ohio – A federal grand jury has charged E. Stanley Hoff, 68, of Westerville with one count of threatening to assault and murder a United States official, a crime punishable by up to ten years in prison.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and the United States Capitol Police announced the indictment returned today.

The indictment alleges that Hoff threatened to assault and murder U.S Representative Steve Stivers and a member of Stivers’ family.

Hoff was charged by a criminal complaint on June 21, 2017 and arrested. An affidavit filed in support of the complaint alleges that Hoff left a threatening voice mail on Rep. Stivers’ Hilliard office phone. Hoff is being held without bond.

U.S. Attorney Glassman commended the investigation of this case by the U.S. Capitol Police and Assistant United States Attorneys Kevin Kelley and Brian Martinez, 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 – Aaron Travis Daniels, 20, aka Harun Muhammad, aka Abu Yusef of Columbus pled guilty in U.S. District Court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B. Daniels faces a maximum sentence of 20 years in prison.

 

U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and agencies participating in the Columbus Joint Terrorism Task Force (JTTF) announced the plea entered today before Chief U.S. District Judge Edmund A. Sargus Jr.

 

JTTF agents arrested Daniels on November 7, 2106, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on November 10, 2016 Daniels has been in custody since his arrest.

 

“This case demonstrates how terrorist activities abroad can reach into our local communities,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”

 

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

 

The case is being prosecuted by Assistant U.S. Attorney Jessica W. Knight, Special Assistant U.S. Attorney Joseph Gibson with Franklin County Prosecutor Ron O’Brien’s Office, and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.

DAYTON – Michael Stathas, 33, of Dayton, was sentenced in U.S. District Court today to 84 months in prison for robbing two banks in Montgomery County in December 2016.

 

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 Walter H. Rice.

 

Stathas pleaded guilty on April 3, 2017 to two counts of robbery. According to the Statement of Facts filed with his plea agreement, Stathas jumped the teller counter at a Fifth Third Bank in Kettering, Ohio on December 23, pepper-sprayed the teller and stole the teller’s station money. On December 29, Stathas vaulted a bank counter at Key Bank in Centerville, Ohio. Once on the other side of the counter, he stole cash from the teller’s station.

 

Stathas fled the second robbery in his vehicle. Montgomery County Sheriff’s deputies and detectives in marked vehicles attempted to stop him, but rather than complying with their demands, he fled at a high rate of speed, ultimately crashing his car near Moraine, Ohio.

 

U.S. Attorney Glassman commended the cooperative investigation of this case by the FBI, Montgomery County Sheriff’s Office and the Kettering Police Department, as well as Assistant United States Attorney Brent G. Tabacchi, who represented the United States in this case.

COLUMBUS, Ohio – Thomas A. Sweeney, 49, of Columbus was sentenced to serve 45 years in prison for committing sex crimes involving a 14-year old female.

Vipal Patel, First Assistant United States Attorney for the Southern District of Ohio, Steve Francis, Acting Special Agent in Charge, U.S. Department of Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down today by U.S. District Judge Michael H. Watson.

After a three-day trial, A U.S. District Court jury convicted Sweeney on January 20, 2017 of sexual exploitation of a minor, attempted coercion and enticement of a minor, receipt of child pornography and committing a sexual offense against as minor as a registered sex offender. Judge Watson sentenced Sweeney to a 45-year prison term on each of the first three crimes and ordered him to serve them concurrently, plus an additional ten years for committing a sexual offense against a minor as a registered sex offender.

According to court documents and trial testimony, Sweeney communicated with his then-14-year-old biological daughter via cellular phone and convinced her to send him photographs of her nude genitalia via text message. He also attempted to convince her to meet with him for purposes of the two engaging in sexual acts.

Sweeney had been convicted in 2004 in Franklin County Common Pleas Court for two counts of rape involving a minor. He was sentenced to two consecutive terms of five years in prison for that conviction.

Sweeney was charged by a criminal complaint in this case on February 11, 2016 and was indicted by a federal grand jury on March 31, 2016 and in a superseding indictment on January 12, 2017.

This case was prosecuted by United States Attorney Benjamin C. Glassman and Assistant United States Attorney Heather A. Hill. It was investigated by Franklin County ICAC Task Force members.

“Sweeney has proven himself to be a true predator,” Patel said. “The most significant outcome of the case is that the public is protected from future crimes by him.”

“The sentence handed down today should send a clear message about the harsh consequences that await child predators," said Steve Francis, special agent in charge of HSI, "This case is yet another example of the extraordinary collaborative efforts among our law enforcement partners with the ICAC, and our resolve to protect the most vulnerable among us."

The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. In addition to HSI and the Franklin County Sheriff’s Office, the following agencies are members of the task force: Ohio ICAC, the Ohio Bureau of Criminal Investigation in Attorney General Mike DeWine’s Office, Franklin County Prosecutor Ron O’Brien’s Office, the Delaware and Pickaway county Sheriff’s offices and the police departments in Circleville, Columbus, Grandview, Grove City, Hilliard, The Ohio State University, Upper Arlington and Westerville.

DAYTON – William M. Apostelos, 55, formerly of Springboro, Ohio, was sentenced in U.S. District Court to 180 months in prison for defrauding nearly 500 victims in a $70 million Ponzi scheme.

 

Apostelos pleaded guilty to conspiracy to commit mail and wire fraud and theft or embezzlement from an employee benefit plan in February.

 

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; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; and Andrea Seidt, Commissioner, Ohio Department of Commerce Division of Securities, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.

 

Apostelos and his wife, Connie, also known as Connie Coleman, were indicted in October 2015. According to court documents, beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $20 million collectively. Apostelos received $70 million in investment funds in total.

 

William Apostelos operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He falsely reported that he held a degree in mathematics and was a registered securities broker.

 

Connie Apostelos also operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were allegedly operated through improper use of investor funds to William Apostelos’ companies.

 

The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.

 

Rather than investing the money, the couple used it to pay for personal luxuries. According to court documents, William Apostelos was spending $35,000 per month on his wife’s horse racing company and $400 per month on Victoria’s Secret lingerie.

 

When the defendants became late on interest payments to the victims, they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.

 

The government has seized two racehorses, vehicles, jewelry, artwork and cash totaling approximately $650,000 from the couple.

 

“This was a massive and devastating fraud – the largest Ponzi scheme ever in Dayton,” U.S. Attorney Glassman said. “Apostelos thoroughly deserves the substantial prison sentence that he received today.”

 

“In Ponzi schemes the promoter eventually runs out of other people's money and the scheme collapses like a house of cards," said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “William Apostelos left approximately 500 investors in financial peril and created a recipe for devastation that could last a lifetime.”

 

“William Apostelos stole approximately $1.9 million from pension funds that American workers were counting on for retirement. We will continue to work with our law enforcement partners to safeguard employee benefit plan assets," said James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.

 

“Mr. Apostelos falsely reported that he was a registered securities broker,” said Ohio Securities Commissioner Andrea Seidt. “This is why we encourage investors to always check the background of people who try to sell them any kind of investment product. Ohioans can call our Investor Protection Hotline at 877-683-7841 to find out if the person is licensed to sell securities and if the product is properly registered.”

 

Steven Scudder, 62, of Centerville, an attorney who served as trustee of the WMA Trust, pleaded guilty in U.S. District Court on January 19 to wire fraud, admitting that he used his position as an attorney to facilitate the fraudulent investment scheme. He was sentenced to serve 14 months in prison.

 

Connie Apostelos pleaded guilty to one count of mail fraud on April 4 and is scheduled for sentencing on August 2 before Judge Rose.

 

U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Brent G. Tabacchi and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case, as well as Enforcement Attorney Brian Peters, who represented the Ohio Division of Securities on the case.

 

# # #

CINCINNATI – Malik D.M. Bell, 24, of Cincinnati, was sentenced in U.S. District Court to 210 months in prison for sex trafficking of children and production 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 Field Office and West Chester Township Police Chief Joel Herzog announced the sentence handed down today by U.S. District Judge Timothy S. Black.

 

Bell was indicted in March 2016 and pleaded guilty to the two counts in February 2017.

 

According to the Statement of Facts in this case, Bell recruited a 15-year-old female to engage in a commercial sex act. Specifically, he began communicating with the victim through Tagged.com in April 2015. At that time, he made plans with the victim to get together with the intent of prostituting the minor.

 

Bell drove from Cincinnati to Fort Mitchell, Ky. to pick up the girl and bring her to the Tri-County Inn hotel in West Chester, Ohio. There, Bell engaged in sex acts with the minor and video recorded some of the activity on his cell phone.

 

Bell took nude and partially nude photos of the victim and created advertisements with them on Backpage.com. Bell arranged for at least two men to have sexual intercourse with the minor at the hotel. He instructed the victim about how much to charge for various amounts of time and sexual acts and the victim provided Bell with the money paid.

 

“Malik Bell took advantage of a vulnerable juvenile and sexually exploited her for his own financial gain,” U.S. Attorney Glassman said. “Today’s sentence illustrates how egregious his criminal actions were.”

 

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

 

###

Court records unsealed today reveal that Abdirahman Sheik Mohamud, 25, of Columbus, Ohio, pleaded guilty to all counts alleged against him regarding a terrorist plot.

A federal grand jury charged Mohamud in April 2015 with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization – namely, al-Nusrah Front – and one count of making false statements to the FBI involving international terrorism in an indictment returned in Columbus. Mohamud pleaded guilty before U.S. Magistrate Judge Elizabeth Preston Deavers on Aug. 14, 2015, and the plea was sealed because of an ongoing investigation.

Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI, Prosecutor Ron O’Brief for Franklin County, and the FBI’s Columbus Joint Terrorism Task Force (JTTF), announced the plea unsealed by U.S. District Judge James L. Graham.

“Mohamud admitted to traveling overseas, providing material support to a designated foreign terrorist organization, and receiving training from terrorists. He also admitted to returning to the United States and planning to conduct an attack on American soil. He will now be held accountable for his crimes,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism. We will remain vigilant in our efforts to identify, disrupt, and bring to justice those who provide material support to foreign terrorist organizations and seek to conduct attacks on our homeland.”

“National security is the first priority of this office, and we will use every tool at our disposal to stop those who support foreign terrorist organizations and those who seek to do harm in the United States,” U.S. Attorney Glassman said.

“Each day the Joint Terrorism Task Force and our law enforcement partners are working to keep the community safe from those who wish to disrupt our way of life,” said Special Agent in Charge Byers. "We must continue to remain vigilant against these potential threats.”

“This case illustrates the effectiveness of the local JTTF and the cooperative effort in the Columbus area that exists to combat terrorism,” said Franklin County Prosecutor O’Brien.

According to court documents, Mohamud is a Somali-born naturalized citizen of the U.S. who, in 2014, obtained a U.S. passport and one-way ticket to Greece. During his travel in April 2014, Mohamud did not board his connecting flight to Athens, Greece; rather, during his layover in Istanbul, Turkey, he completed pre-arranged plans to cross the border into Syria. In Syria, Mohamud received training from al-Nusrah Front, a terrorist organization affiliated with al-Qaeda.

According to a statement of facts supporting Mohamud’s guilty plea, while in Syria, Mohamud trained with al-Nusrah Front on fitness, and on the use of weapons and tactics. Mohamud also engaged in a firefight and expressed his desire to die fighting in Syria.

After his brother was killed while fighting for al-Nusrah Front, Mohamud returned to the U.S. According to the statement of facts, after returning to the U.S., Mohamud planned to obtain weapons in order to kill military officers or other government employees or people in uniform. Evidence seized by the FBI indicates that Mohamud researched places in the U.S. to carry out such plans.

Mohamud was originally arrested and indicted in state court and a $1 million bond was set that maintained him in custody. Those state charges were dismissed when the federal prosecution commenced. Mohamud was then transferred into federal custody following the April 2015 indictment and remains in custody.

Providing material support to terrorists and providing material support to a designated foreign terrorist organization are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Boente and U.S. Attorney Glassman commended the cooperative investigation of the FBI’s JTTF with numerous local partners. Trial Attorneys Bridget Behling and Lolita Lukose of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorneys Douglas Squires, Jessica H. Kim and Salvador Dominguez and Special Assistant U.S. Attorney Joseph Gibson of the Southern District of Ohio, are prosecuting the case.

 

COLUMBUS, Ohio – Court records unsealed today reveal that Abdirahman Sheik Mohamud, 25, of Columbus, Ohio, pleaded guilty to all counts alleged against him regarding a terrorist plot.

 

A federal grand jury charged Mohamud in April 2015 with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization – namely, al-Nusrah Front – and one count of making false statements to the FBI involving international terrorism in an indictment returned in Columbus, Ohio.

 

Assistant Attorney General for National Security Dana J. Boente, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Prosecutor Ron O’Brien and the FBI’s Columbus Joint Terrorism Task Force (JTTF), announced the plea unsealed by U.S. District Judge James L. Graham.

 

“Mohamud admitted to traveling overseas, providing material support to a designated foreign terrorist organization, and receiving training from terrorists. He also admitted to returning to the United States and planning to conduct an attack on American soil. He will now be held accountable for his crimes, said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism. We will remain vigilant in our efforts to identify, disrupt, and bring to justice those who provide material support to foreign terrorist organizations and seek to conduct attacks on our homeland.”

 

“National security is the first priority of this office, and we will use every tool at our disposal to stop those who support foreign terrorist organizations and those who seek to do harm in the United States,” U.S. Attorney Glassman said.

 

"Each day the Joint Terrorism Task Force and our law enforcement partners are working to keep the community safe from those who wish to disrupt our way of life," said Special Agent in Charge Byers. "We must continue to remain vigilant against these potential threats."

 

“This case illustrates the effectiveness of the local JTTF and the cooperative effort in the Columbus area that exists to combat terrorism,” Franklin County Prosecutor O’Brien said.

 

Mohamud pleaded guilty before U.S. Magistrate Judge Elizabeth Preston Deavers on August 14, 2015, and the plea was sealed because of an ongoing investigation.

 

According to court documents, Mohamud is a Somali-born naturalized citizen of the United States who, in 2014, obtained a U.S. passport and one-way ticket to Greece. During his travel in April 2014, Mohamud did not board his connecting flight to Athens, Greece; rather, during his layover in Istanbul, Turkey, he completed pre-arranged plans to cross the border into Syria. In Syria, Mohamud received training from al-Nusrah Front, a terrorist organization affiliated with al-Qaeda.

 

According to a statement of facts supporting Mohamud’s guilty plea, while in Syria, Mohamud trained with al-Nusrah Front on fitness, and on the use of weapons and tactics. Mohamud also engaged in a firefight and expressed his desire to die fighting in Syria.

 

After his brother was killed while fighting for al-Nusrah Front, Mohamud returned to the United States. According to the statement of facts, after returning to the United States, Mohamud planned to obtain weapons in order to kill military officers or other government employees or people in uniform. Evidence seized by the FBI indicates that Mohamud researched places in the U.S. to carry out such plans.

 

Mohamud was originally arrested and indicted in state court by Franklin County Prosecutor O’Brien’s office and a $1 million bond was set that maintained him in custody. Those state charges were dismissed when the federal prosecution commenced. Mohamud was transferred into federal custody following the April 2015 indictment and remains in custody.

 

Providing material support to terrorists and providing material support to a designated foreign terrorist organization are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

 

Acting Assistant Attorney General Boente and U.S. Attorney Glassman commended the cooperative investigation of the FBI’s JTTF with numerous local partners, and Assistant United States Attorneys Douglas Squires, Jessica H. Kim and Salvador Dominguez, as well as Special Assistant United States Attorney Joseph Gibson with the Franklin County Prosecutor’s office and Trial Attorneys Bridget Behling and Lolita Lukose of the National Security Division’s Counterterrorism Section, who are prosecuting the case.

 

# # #

CINCINNATI– A federal grand jury has charged two brothers, William Pierce Washington, 36, and William Pierce Washington, Jr., 47, both of Cincinnati, with conspiracy to sex traffic children and sex trafficking of children in an indictment returned in Cincinnati that was unsealed today.

 

Washington – who is also known as “Bam” – was arrested by the FBI this morning and will appear in federal court at 1:30pm. Washington, Jr. – also known as “Man” – was arrested on June 14, 2017.

 

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 Office, Sharonville Police Chief Aaron Blasky and other members of the FBI’s child exploitation task force announced the indictment returned June 21.

 

According to the indictment, Sharonville Police Department officers responded to a motel in Sharonville on April 18, 2017 following the report of a distraught female in the business’s parking lot. The female, a 16-year-old, told officers she had spent several hours in a motel room smoking crack cocaine and engaged in oral sex with an adult male who physically assaulted her.

 

Contact with the adult male and search of his cell phone revealed sexually explicit photos with the victim and text conversations with Washington about arrangements to coordinate the sexual activity for payment to Washington.

 

During a forensic interview, the victim told investigators she had run away from a foster home and was living with a relative and the relative’s boyfriend, Washington, at a residence on Kinney Avenue that is owned by Washington, Jr.

 

While at the residence, Washington allegedly beat and raped the victim. Washington, Jr. acted as the victim’s boyfriend and the victim was allegedly forced to have sex with him.

 

The victim described several instances where she said she was forced to engage in prostitution, was injected with heroin and forced to smoke crack cocaine. She said she was often beaten and on one occasion had a gun held to her head while being forced to have sex with someone. Every time she was forced to engage in prostitution, Washington and Washington, Jr. allegedly arranged her transportation and had control over the transactions.

 

Conspiracy to sex traffic a minor is a crime punishable by up to life in prison and sex trafficking of children carries a minimum of 10 years in prison up to life.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI and Sharonville Police Department, as well as Assistant United States Attorney Kyle J. Healey, 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 – Ikechi W. Emeaghara, 27, of Columbus, was sentenced today in U.S. District Court to 240 months in prison for eight counts of armed bank robbery. Emeaghara is the armed robber dubbed as the “Buckeye Bandit” by law enforcement.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office; Columbus Police Chief Kim Jacobs; Franklin County Sheriff Dallas Baldwin; Delaware County Sheriff Russell L. Martin; Ohio State University Police Chief Craig Stone; Worthington Police Chief Jerry L. Strait, Jr.; Upper Arlington Police Chief Tracy Hahn and Gahanna Police Chief Dennis Murphy announced the sentence handed down today by Senior U.S. District Judge James L. Graham.

 

According to court documents, Emeaghara brandished a dangerous weapon and demanded cash from bank teller’s drawers on the following occasions:

 

• October 31, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna

• November 30, 2013 at the Cooper State Bank on West 5th Avenue in Columbus

• December 6, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna

• July 9, 2014 at the Smart Federal Credit Union on North High Street in Columbus*

• January 12, 2015 at the Cooper State Bank on Sawmill Road in Columbus*

• April 26, 2015 at the Cooper State Bank on Sawmill Road in Columbus*

• March 17, 2016 at the First Merit Bank on East Powell Road in Powell

• October 21, 2016 at the Key Bank on Frantz Road in Columbus (original indictment)

 

* Denotes armed robbery charges that also include forcing one or more persons to accompany him within the bank.

 

Emeaghara was indicted by federal grand juries in initial and superseding indictments in November and December 2016. He pleaded guilty to eight counts of armed robbery in March 2017.

 

Emeaghara was also ordered to pay restitution to the banks and sentenced to five years of supervised release following his term of imprisonment.

 

U.S. Attorney Glassman commended the cooperative investigation by law enforcement and Deputy Criminal Chief Gary L. Spartis and Assistant U.S. Attorney Salvador A. Dominguez, who are prosecuting the case.

 

# # #

CINCINNATI – Grady Calhoun, 35, of Hamilton, Ohio, pleaded guilty in U.S. District Court to three counts of bank fraud related to making representations as part of his application to obtain credit cards.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason Hayden, Acting Special Agent in Charge, announced the pleas entered into before U.S. District Judge Timothy S. Black.

 

According to the Statement of Facts in this case, on three separate occasions, Calhoun made false claims about his occupation and income. During one application process with Chase Bank, he claimed he was a partner and president of a law firm called Serdekor LLC. Serdekor LLC is an Ohio limited liability company that was created and registered by Calhoun; however, Serdekor LLC is not a law firm and the defendant is not a licensed attorney. Rather, Calhoun was employed as a paralegal at a law firm in the Southern District of Ohio.

 

Calhoun manipulated the payment process to Chase Bank to keep the credit card accounts open as long as possible, and owes nearly $408,000 as a result of this scheme.

 

He also fraudulently obtained credit card accounts at Barclay’s Bank and applied for other lines of credit with another individual’s social security number. Calhoun owes Barclay’s more than $28,000.

 

As part of the plea agreement, Calhoun has agreed to pay the loss amounts to both banks in restitution. Additionally, as part of the plea, the parties in this case have recommended a term of imprisonment of 15 months, followed by two years of supervised release. The Judge will consider the recommended sentence at a sentencing hearing, which is yet to be scheduled.

 

U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.

 

# # #

CINCINNATI – Susan M. Ruhe, 53, of Cincinnati, pleaded guilty in U.S. District Court to one count of bank fraud. Ruhe defrauded her former employer, Procter & Gamble, of more than $454,000.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason A. Hayden, Acting Special Agent in Charge, U.S. Secret Service announced the plea entered into before U.S. District Judge Timothy S. Black.

 

According to the Statement of Facts in this case, Ruhe was employed by Procter & Gamble, the multinational consumer goods company headquartered in Cincinnati, from July 1989 through June 2013. Her last job title was Executive Assistant in the Global Beauty Care Business Development Group. In that capacity, her primary job duties were executive travel planning, expense reporting, calendar management and the scheduling of team meetings and events.

 

From November 2007 through the end of her employment, Ruhe defrauded the company by requesting that the payment department issue corporate checks to be used to pay for expenses that Procter & Gamble had incurred in the ordinary course of business. In reality, she used the corporate checks to make payments on her personal credit card accounts. Both credit accounts were through Citibank. Ruhe also defrauded Procter & Gamble by using her corporate credit card to pay for more than $13,000 of her personal expenses.

 

To conceal her scheme, Ruhe used the email of an executive without consent to approve her requests for corporate checks. She would then designate an unwitting third party from whom she would retrieve the checks in accordance with company policy. In total, she obtained 40 fraudulent corporate checks through this scheme.

 

As part of the plea agreement, Ruhe has agreed to pay more than $454,000 in restitution to Procter & Gamble.

 

Bank fraud is punishable by up to 30 years in prison and/or a fine of up to $1 million.

 

U.S. Attorney Glassman commended the investigation of this case by the U.S. Secret Service and Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.

 

# # #

COLUMBUS, Ohio – Cheryl McGrath, 49, of Guysville, Ohio, pleaded guilty today in U.S. District Court to 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 plea entered into before Chief U.S. District Edmund A. Sargus, Jr.

 

According to the Statement of Facts in this case, 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.

 

Health care fraud carries a potential maximum sentence of 10 years in prison and willful failure to pay over tax is punishable by a potential maximum of five years’ imprisonment.

 

As part of her plea agreement, McGrath has agreed to pay more than $2.2 million in restitution to the Ohio Medicaid Program and nearly $367,000 to the IRS.

 

“The conduct detailed in this case is egregious. These programs were designed to help the sick and infirm, and this defendant defrauded them out of millions of dollars,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Business owners have a significant responsibility to collect and turn over all IRS withholding taxes. Employment tax fraud can also impact employees, who may see future benefits such as Social Security, Medicare or Unemployment Compensation reduced or eliminated because of their employers not complying with the law.”

 

“Billing for services not rendered, manipulating electronic claims information to falsify services provided, and billing for ineligible or deceased beneficiaries all adds up to health care fraud at taxpayer expense”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our Federal, State and local law enforcement partners to ensure that those who commit such crimes are held accountable.”

 

“This defendant took millions in taxpayer dollars by blatantly lying about the services her agency provided,” said Ohio Attorney General DeWine. “Health care fraud will not be overlooked in Ohio. My office works every day with our state, local, and federal partners to identify this type of fraudulent activity and ensure that those who unlawfully take taxpayer money are held responsible.”

 

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.

 

# # #

COLUMBUS, Ohio – Adrian A. Douglas, 48, of Columbus, pleaded guilty today in U.S. District Court to conspiracy to distribute more than 1,000 kilograms of marijuana and conspiracy to commit money laundering. Douglas led a Central Ohio marijuana trafficking ring that involved receiving UPS shipments of the drug from Las Vegas and mailing cash back to the supplier.

 

Douglas’s son, Justin A. Douglas, 28, as well as Joshua N. Barron, 28, previously pleaded guilty to the same two charges. Raymond Tillman, 42, previously pleaded guilty to conspiracy to distribute more than 1,000 kilograms of marijuana. All three men are also Columbus residents.

 

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, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Columbus Police Chief Kim Jacobs and other members of the Ohio Organized Crime Commission’s Central Ohio Drug Enforcement task force announced the pleas entered into before U.S. District Judge Michael H Watson.

 

The Statement of Facts in this case details that between November 2015 and December 2016, investigators documented 264 packages sent via UPS from Las Vegas to Columbus. Those packages contained a total of more than 3,000 kilograms of marijuana.

 

Once co-conspirators distributed the marijuana in Central Ohio, they mailed cash back to the source of supply in Las Vegas. Investigators documented 41 packages shipped from Columbus to Las Vegas during the same timeframe.

 

For example, on December 7, 2016, an 18-pound package was shipped via UPS from Columbus to Las Vegas but was interdicted in Kentucky by law enforcement. The package contained more than $199,000 in cash.

 

On December 21, 2016, a series of search warrants were conducted at locations associated with the drug ring and turned up more than $331,000 in cash at Justin Douglas’s residence on Scioto Chase Blvd. An Additional $27,000 in cash was found at the residence of Adrian Douglas and more than $58,000 was seized from Raymond Tillman during a traffic stop.

 

Conspiracy to distribute more than 1,000 kilograms of marijuana is a crime punishable by a range of 10 years to life in prison and a potential maximum fine of $10 million. Conspiracy to commit money laundering carries a potential maximum of sentence of 20 years in prison and a possible fine of up to $500,000.

 

All four defendants were indicted in February.

 

U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, DEA and Columbus Police, as well as Assistant United States Attorney Kevin Kelley, who is representing the United States in this case.

 

# # #

DAYTON – Antonio J. Spiva, 25, and Charles M. McBeath, 33, both of Dayton, were sentenced in U.S. District Court this week for conspiracy to possess with intent to distribute heroin and fentanyl that resulted in the death of at least two individuals. Each defendant pleaded guilty in January.

 

Spiva was sentenced yesterday to 180 months in prison and McBeath was sentenced this afternoon to 198 months in prison.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Montgomery County Sheriff Phil Plummer, Dayton Police Chief Richard Biehl and other members of the Heroin Eradication Apprehension Team (HEAT) announced the sentences handed down by U.S. District Judge Thomas M. Rose.

 

Both men were originally indicted by a federal grand jury in December 2015 and have remained in custody since. According to court documents, through late May 2015, McBeath and Spiva distributed heroin, fentanyl and crack cocaine while maintaining operations at residences located on E. Fifth Street, S. Torrence Street and S. Horton Street, all in Dayton. Their distribution of fentanyl resulted in the overdose death of two individuals and the non-fatal overdose of at least three others.

 

“The sentences handed down in this case should send a clear message about how seriously we are pursuing, and will continue to pursue, the dealers plaguing our communities with opiates,” U.S. Attorney Glassman said.

 

“Trafficking in opiates is selling death to those that are vulnerable,” Dayton Police Chief Richard Biehl said. “Justice demands accountability for the harm and death that results from these actions.”

 

“Federal prosecutions that target individuals who distribute heroin and/or synthetic opioids which result in overdose deaths are a top priority of the Drug Enforcement Administration,” Assistant Special Agent in Charge Michael K. Bulgrin said. “This investigation is a great example of how strong partnerships and cooperative efforts among federal, state, and local law enforcement agencies are holding such individuals responsible for the harm they bring to the community.”

 

The HEAT initiative was announced in May 2015 and includes the U.S. Attorney’s Office, DEA, Dayton Police Department, Montgomery County Sheriff’s Office, Montgomery County Coroner’s Office, and the Miami Valley Regional Crime Laboratory. The intent of the task force is to prosecute heroin and fentanyl suppliers who contribute to both fatal and non-fatal overdoses in Montgomery County.

 

U.S. Attorney Glassman commended the investigation of this case by HEAT, and Assistant U.S. Attorneys Sheila G. Lafferty and Dominick S. Gerace, who are prosecuting the case.

 

 

# # #

 

DAYTON – Steven Scudder, 62, of Centerville, was sentenced in U.S. District Court to 14 months in prison and three years of supervised release for his role in a fraudulent investment scheme. Scudder pleaded guilty to wire fraud on January 19, and admitted that he used his position as an attorney to facilitate the fraudulent investment scheme operated by someone else.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration, James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of the Inspector General and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the sentence handed down today by U.S. District Judge Thomas M. Rose.

 

Court documents state that between July 2013 and July 2014, Scudder served as trustee of the WMA Trust, a land trust that purported to secure investments that individuals had made with William Apostelos. Scudder ultimately resigned from this position during mid-summer 2014. Scudder said Apostelos instructed him to continue to falsely hold himself out as the trustee of the WMA Trust until September 2014. Based on Scudder’s false representations, an investment group of approximately 10 people in another state invested more than $1 million with Apostelos. Apostelos used the funds to pay earlier investors rather than investing the money as promised.

 

Apostelos pleaded guilty in February for conducting a $70 million Ponzi scheme that defrauded nearly 500 victims. He is scheduled for sentencing at 9:30am on June 30.

 

U.S. Attorney Glassman commended the cooperative law enforcement investigation of this case, as well as Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.

 

# # #

CINCINNATI – A federal grand jury has charged Evans Landscaping, Inc.; the owner of Evans Landscaping, Inc., Doug Evans, 55, of Cincinnati; and the vice president of operations for Evans Landscaping, Jim Bailey, 49, of Cincinnati, with charges related to allegedly defrauding the City of Cincinnati and other public entities through fraudulent small business and minority business contracts.

 

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

 

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 Office, and Ohio Attorney General Mike DeWine announced the indictment returned May 18 and unsealed today.

 

Evans Landscaping is an Ohio company headquartered in Cincinnati that performs demolition, site-work, grading, hauling, recycling and landscaping services. Given the size and ownership of the company, Evans Landscaping does not qualify as a small business enterprise (SBE), a minority business enterprise (MBE) or as economically disadvantaged under local and state government programs.

 

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

 

Similarly, the State of Ohio has established an Encouraging Diversity, Growth, and Equity program (EDGE) for economically disadvantaged businesses that are at least 51% owned and controlled by an economically disadvantaged person. The size of the business must not exceed the definition of a “small business.” The State also has a program for certifying minority business enterprises (MBE) that requires the owner to have actual control of the day-to-day operations of the company.

 

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

 

The indictment alleges that Evans and Evans Landscaping provided at least $85,000 in startup and early operational funds to Ergon and that Jordan did not make any capital contributions to the establishment of the company.

 

Evans Landscaping personnel allegedly prepared and filed the legal documentation to register Ergon as an LLC in April 2010, created the company’s name and logo, ordered Ergon apparel, and bought equipment labels with Ergon’s logo.

 

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

 

According to the indictment, Evans paid Jordan a monthly salary through the Ergon payroll and Evans Landscaping employees handled virtually all of the accounting and office management functions of Ergon. For example, it is alleged that:

 

• Ergon’s bookkeeping was kept on Evans Landscaping’s internal accounting database;

• Evans Landscaping personnel had Jordan sign blank Ergon checks for the employees to use;

• Evans Landscaping was a guarantor for Ergon’s line of credit and arranged for the purchase of two Mack Trucks in Ergon’s name;

• At various times, Ergon’s business office and address was located on property owned by Evans or one of his companies;

• Evans, Bailey and others controlled hiring and firing by Ergon, and at one point, Evans terminated the Ergon health care plan;

• Evans Landscaping housed, maintained and dispatched the vehicles and equipment in Ergon’s name, which was used by both companies; and

• Bailey and other Evans Landscaping officers and employees directed virtually all field and construction operations of Ergon, including on-site supervision and the managing of Ergon field workers.

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

 

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

 

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

 

In conjunction with this indictment, the government has filed Bills of Information and Plea Agreements for four former employees at Evans Landscaping and Ergon – namely, Korey Jordan (president of Ergon), Maurice Patterson (former CFO of Evans Landscaping), John Dietrich (former CFO of Evans Landscaping) and Michael Moeller (former manager at Evans Landscaping).

 

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

 

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

 

# # #

DAYTON – As the result of a national FBI investigation, Andrew Demma, 38, of Dayton, pleaded guilty in U.S. District Court to possession of child pornography involving prepubescent minors.

 

Two other defendants have also pleaded guilty after the national investigation. James Gaver, 71, of Kettering, Ohio, and Robert Phelps, 49, of Jackson Center, Ohio each pleaded guilty in April in separate cases to the same charge of possession of child pornography involving prepubescent minors.

 

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 Office, announced the pleas entered into before U.S. District Judge Walter H. Rice.

 

According to the Statement of Facts that Demma agreed to, investigators discovered more than 600 images and videos of child pornography while executing a search warrant on August 11, 2015 at Demma’s residence.

 

Possession of child pornography carries a potential maximum sentence of 20 years in prison.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt who is representing the United States in this case.

 

# # #

COLUMBUS, Ohio – Connie L. Christy, 62, of New Albany, was sentenced in U.S. District Court to four months in prison, four months community confinement, three months home confinement and three years of supervised release for attempting to evade the IRS of more than $124,000.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.

 

According to court documents, Christy solely owned and operated Christy Collections, Inc., a custom interior design firm. In 2011, Christy received nearly $1.6 million from two clients for design services. Of that, approximately $637,000 was taxable income, yet Christy only reported $205,771.

 

Christy failed to report all of her income to her tax return preparer – instead claiming that some of the income she received had been business expenses – and thus, she attempted to evade an additional tax due and owing of $124,864.

 

The Sentencing Memorandum in this case details that Christy earned the income while working on a design project for a couple who suffered from medical and physical conditions. Their conditions required specific types of materials used in furnishing their home, which Christy told her clients she could purchase at discounted rates.

 

The clients grew suspicious when Christy began to bill at a higher rate, claiming that contractors had forgotten to include items in their quotes or that retailers had gone out of business after Christy had paid them but before supplying the materials.

 

After the couple confronted Christy, she tried to cover up her activity by attempting to convince retailers to provide her with fake invoices for services. Additionally, Christy submitted documentation of personal expenditures on her beach home and business expenses from a fictitious vendor to try to justify the overpayment she had requested from her clients.

 

During the time of the project (and since June 2008), Christy was also receiving government benefits monthly after falsely claiming on her application that she did not receive child support, was not self-employed, did not have a vehicle, checking account, credit union account or stocks/bonds and did not file a tax return in the previous five years.

 

Christy was charged by indictment in March 2015. She pleaded guilty in June 2016 to one count of tax evasion.

 

“Christy’s scheme to defraud and obtain additional money from her clients ultimately culminated in her failure to report a portion of those proceeds as income to the IRS, causing a tax loss of more than $100,000,” U.S. Attorney Glassman said.

 

“Christy's attempt to evade tax was a theft from the American public," said Ryan L. Korner, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Tax evasion and tax fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished. The IRS and the U.S. Attorney’s Office remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers."

 

U.S. Attorney Glassman commended the cooperative investigation by IRS Criminal Investigation, as well as Assistant United States Attorneys Jessica W. Knight and Jessica H. Kim, who are representing the United States in this case.

 

###

COLUMBUS, Ohio – Mark F. Speakman, 60, of Grove City, Ohio, was sentenced in U.S. District Court today to 60 months in prison for an investment fraud scheme that defrauded his clients out of more than $1.1 million.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, and Grove City Police Chief Jeff Pearson announced the sentence handed down today by Senior U.S. District Judge James L. Graham.

 

According to court documents, between 2000 and 2015, Speakman was a financial advisor at Ameriprise Financial, and between 2002 and 2015 he defrauded his clients by misappropriating their funds.

 

Speakman persuaded his clients to remove their funds from their Ameriprise Financial accounts and invest them in Centrax, a fraudulent real estate investment trust. Rather than investing the funds in real estate, he stole the money. He took $870,000 from seven victims for the real estate scheme and used the money to pay his own expenses.

 

For example, Speakman persuaded one victim to move $125,000 outside of her normal Ameriprise account and invest instead in Centrax. He did not invest the funds in Centrax, but instead used them for his personal benefit. The victim later developed terminal cancer, and she detailed her physical decline in emails to Speakman and instructed him to write checks to an estate-planning attorney and to a “local crematorium and burial society” where she was pre-purchasing cremation services.

 

The dying victim told Speakman she counted on the Centrax trust to avoid placing a burden on her family members when she died and intended to use her Centrax investment in order to pay off the mortgage on her home.

 

Because the Centrax trust did not in fact exist, Speakman convinced the victim not to liquidate her purported Centrax investment and upon her death tried to convince the victim’s family to do the same. When he could no longer postpone their wishes to liquidate, he avoided communication with the family altogether.

 

As part of his scheme to defraud, Speakman stole from others to avoid detection by a client he had previously defrauded. In 2014, one of his clients who had previously agreed to invest in Centrax told Speakman that he wanted to cash out his investment. Speakman had already misappropriated those funds and had no way to pack back his client.

 

As a result, Speakman convinced another client and three of his family members to invest in gold coins. Speakman did not invest in gold coins and instead diverted the money in order to pay back the previous victim.

 

In total, Speakman received nearly $1.2 million from others in furtherance of his fraudulent scheme.

 

In addition, Speakman filed a false federal income tax return with the IRS for the 2014 income tax year on which he omitted $275,000 in income generated by his illegal conduct. The total tax loss to the IRS for 2002 through 2014 was approximately $300,000.

 

Speakman pleaded guilty in December 2016 to one count each of wire fraud, money laundering and filing a false federal income tax return with the IRS. As part of his plea, he agreed to pay nearly $1.2 million in restitution to the victims of his investment fraud scheme and approximately $300,000 in restitution to the IRS.

 

“Mark Speakman committed a serious fraud that lasted more than a decade,” U.S. Attorney Glassman said. “He used his position as a financial advisor to take advantage of clients. Appallingly, he even lied about the final financial wishes of a client who was dying of cancer. The sentence he received today reflects the seriousness of his illegal actions.”

 

“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Frank S. Turner II, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office. “Today's sentencing demonstrates how the IRS, U.S. Attorney’s Office, and the Grove City Police Department banded together to help put an end to the criminal behavior of Mr. Speakman who preyed on investors for his own personal financial gain.”

 

U.S. Attorney Glassman commended the investigation of this case by the IRS and the Grove City Police Department, and Assistant U.S. Attorney Peter K. Glenn-Applegate, who is prosecuting the case.

 

# # #

DAYTON – Deborah Yosick, 61, currently of Davenport, Fla., was sentenced in U.S. District Court to 51 months in prison for embezzling more than $1 million. She pleaded guilty in November to one count each of wire fraud and income tax evasion.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down yesterday evening by Senior U.S. District Judge Walter H. Rice.

According to court documents, Yosick embezzled money from her employer, Donald C. Wright Investments, LLC and its sister company Don Wright Realty, LLC. Don Wright’s businesses are family-owned and are based in Centerville, Ohio. Don Wright provided various commercial, industrial and residential services in the Dayton area.

 

Between approximately 1985 and October 2015, Yosick was Don Wright's accountant and was principally responsible for handling accounts payables and accounts receivables. Yosick was personally responsible for depositing rental receipts (whether they were cash or check) into the appropriate Don Wright bank account.

 

Yosick embezzled money from Don Wright by using rental payments to pay her personal American Express bill. She did so by initiating ACH transfers from a company bank account and used a portion of the cash she embezzled to purchase money orders from supermarkets, Wal-Mart and post offices. She then used the money orders to pay her personal American Express credit card bills. She also paid her personal credit card bill through approximately 70 electronic transfers from a company bank account to American Express.

 

In total, between 2010 and approximately October 2015, Yosick embezzled approximately $1.1 million from her employer.

 

Additionally, Yosick attempted to evade paying $255,571 in federal income taxes to the IRS for the 2010, 2011, 2012, 2013 and 2014 income tax years.

 

As part of her plea agreement, Yosick agreed to pay $1.1 million in restitution to Don Wright and the more than $255,000 to the IRS.

 

“In the midst of the recession, Deborah Yosick funded a lavish lifestyle of exotic travel by embezzling more than a million dollars from the family-owned real estate company that had trusted her with its accounting for thirty years,” U.S. Attorney Glassman said. “Today’s sentence appropriately punishes her egregious crime of greed.”

 

U.S. Attorney Glassman commended the law enforcement investigation by the IRS and FBI, as well as Assistant United States Attorney Amy M. Smith, who is prosecuting the case.

 

# # #

COLUMBUS, Ohio – Roman Hernandez, 38, of Grove City, was sentenced U.S. District Court to 60 months in prison on one count of possession with the intent to distribute one kilogram or more of heroin and one count of money laundering.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin and other members of Central Ohio High Intensity Drug Trafficking Area (HIDTA) Task Force announced the sentence handed down Friday by Senior U.S. District Judge James L. Graham.

 

According to court documents, through a joint investigation conducted by the IRS, ATF, and the Central Ohio HIDTA in cooperation with the Ohio Organized Crime Investigations Commission, Hernandez was identified as a narcotics trafficker that was involved in the sale of heroin.

 

Investigators executed a search warrant at Hernandez’s home on Norwood Street in Columbus on April 9, 2013. During the course of the search warrant, they seized in excess of $55,000, financial records, and documents detailing the purchase of a home for $70,000 in cash.

 

Hernandez also withdrew $26,000 from his personal checking account and purchased a cashier’s check to be used towards the purchase of the home. The funds used by Hernandez to purchase this property were proceeds he derived from sale of narcotics.

 

U.S. Attorney Glassman commended the investigation of this case by the Central Ohio HIDTA Task Force, and Assistant U.S. Attorney Timothy Prichard, who prosecuted this case.

 

# # #

COLUMBUS, Ohio – A federal grand jury has charged William P. Elschlager, 48, of Marietta, Ohio, with cyberstalking and deprivation of rights under color of law in an indictment returned here today.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Washington County Sheriff Larry R. Mincks, Sr. announced the indictment.

 

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

 

It is also alleged that Elschlager, while acting under color of law, unlawfully conducted a traffic stop of the victim after tracking her location with the GPS devise, thus depriving the victim of her Constitutional right to be free from unreasonable searches and seizures.

 

Elschlager was arrested on May 17 by Washington County Sheriff’s Office deputies and released on his own recognizance. Elschlager will no longer appear for the preliminary hearing that was scheduled for June 8 but will instead appear for an arraignment on the indictment, which has yet to be scheduled.

 

Cyberstalking is a crime punishable by up to five years in prison. Deprivation of rights under color of law carries a potential maximum sentence of one year 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 Attorney Jessica H. Kim, who is 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 Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, both of Cincinnati, with conspiracy to sex traffic children and conspiracy to produce child pornography in an indictment returned in Cincinnati. Both defendants are scheduled to appear in federal court at 1:30pm today for arraignment on the indictment.

 

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 Office and other members of the FBI’s Child Exploitation Task Force announced the indictment.

 

The indictment alleges that earlier this month the defendants conspired to harbor a 14-year-old female and cause her to engage in a commercial sex act. Ho and Otero also allegedly conspired to coerce the minor victim to engage in sexually explicit conduct for the purpose of creating child pornography.

 

Both defendants were charged by criminal complaint and arrested on May 4 and remain in custody.

 

Conspiracy to sex traffic children is a crime punishable by up to life in prison. Conspiracy to produce child pornography carries a mandatory minimum of 15 years in prison up to 30 years.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorney Kyle J. Healey, who is 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 Samuel Whitt, 41, of Cincinnati, with criminal interference with the right to fair housing and attempted arson.

 

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 Office and Cincinnati Police Chief Eliot K. Isaac announced the indictment that was returned yesterday and unsealed today.

 

The indictment alleges that Whitt destroyed a rental home in Price Hill after being evicted from the property. Whitt and another individual had rented the lower unit of the house from an interracial couple.

 

According to the indictment, over the Thanksgiving holiday, Whitt broke into the rental home and spray-painted the walls with messages including “die nigger,” “nigger,” and “white power,” as well as images of swastikas. Whitt also splattered paint on walls, stairs and appliances; made holes in the walls; broke banisters; tore carpet; poured quick-drying concrete into the bathroom drains and toilet; and stabbed a knife into the floor. Whitt also allegedly removed plumbing traps from the sinks and left the water running, causing extensive water damage to the ceilings and floors. Whitt turned on the gas stove in the upstairs kitchen, poured paint into the burners, and attempted to remove the smoke detector above the stove.

 

Whitt is charged with one count of violating the Fair Housing Act through force by willfully intimidating the homeowners based on their race, color and familial status. This is a crime punishable by a potential maximum sentence of up to 10 years in prison. Whitt is also charged with attempted arson, which carries a mandatory minimum sentence of five years’ up to a possible 20 years’ imprisonment.

 

Cincinnati Police officers arrested Whitt on December 9, 2016 on local breaking and entering and vandalism charges. Whitt was arrested this morning by FBI agents and Cincinnati Police officers on the federal charges.

 

U.S. Attorney Glassman commended the investigation by the FBI and Cincinnati Police, as well as Assistant United States Attorneys Megan Gaffney and Kyle Healey who are prosecuting the case.

 

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

 

# # #

DAYTON – A federal grand jury returned two indictments today charging five people with robbing two Middletown pharmacies and stealing prescription drugs including morphine, oxycodone and hydrocodone for the purpose of selling the drugs on the street.

 

Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Middletown Police Chief Rodney Muterspaw announced the indictments.

 

The grand jury charged two Dayton men, Calvin Cavonte Tribble, 19, and Savon Anthony Davis, 23, with attempted robbery of a pharmacy in Middletown on April 18, 2017 and robbing the pharmacy on April 19. In a separate indictment, the grand jury alleges that three Indianapolis men, Eric Lamont Bates, 20, Yasar Jamal Burnett, 18, and Brandon Lee Dawson, 19, conspired to rob another Middletown pharmacy of morphine and oxycodone on April 29, 2017.

 

The grand jury charged the defendants with conspiracy, robbery by force, interference with commerce by threats of violence, and possession with intent to distribute the drugs. Each crime is punishable by up to 20 years imprisonment.

 

Middletown police arrested the defendants on the date of the robberies and filed state charges. All defendants appeared in federal court. Davis was released with conditions. The other four are being held without bond pending trial.

 

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

 

An indictment contains allegations. All defendants should be presumed innocent until and unless proven guilty in court.

 

# # #

DAYTON – Michael Rose, 29, of New Carlisle, Ohio, was sentenced today in U.S. District Court to 12 months in prison for attempted extortion under the color of law.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Montgomery County Sheriff Phil Plummer announced the sentence handed down today by U.S. District Judge Walter H. Rice.

 

According to the Statement of Facts in this case, Rose began working as a corrections officer at the Montgomery County Jail in spring 2016. In September of that year, Rose agreed to bring contraband – namely, a cell phone – into the jail in exchange for cash from an inmate. Likewise, in November 2016, Rose smuggled in a second cell phone and met with an associate of an inmate near a Dayton retail store to receive $1,500 as payment. Rose provided the phone knowing that the inmate intended to use it to direct drug trafficking activities from jail.

 

Rose pleaded guilty in February to one count of attempted extortion under color of official right.

 

“Any time a public employee takes a bribe, that is a breach of the public trust, but it is difficult to imagine a more serious instance of this crime than a corrections officer taking bribes from inmates in exchange for smuggling into the jail phones with which the inmates could carry on trafficking drugs,” U.S. Attorney Glassman said. “Federal prison is appropriate for Mr. Rose’s crimes.”

 

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

 

# # #

COLUMBUS, Ohio – Sylvain Desjardins, 48, and David Ayotte, 46, both of Maribel, Canada, agreed to plead guilty to possession with intent to distribute more than five kilograms of cocaine.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, announced the filing of the plea documents today.

 

Law enforcement and other agencies involved in this case include: U.S. Department of Homeland Security Investigations, U.S. Drug Enforcement Administration, Federal Aviation Administration, Ohio University Police Department, the Ohio University Airport, Athens County Sheriff’s Office, U.S. Customs and Border Protection Air and Marine Operations, Ohio National Guard Counter Drug Program, Ohio Bureau of Criminal Investigations, U.S. Homeland Security Investigations Attaché Office Montreal, Ohio High Intensity Drug Trafficking Area (HIDTA) Task Force, Royal Canadian Mounted Police, Canada Border Services Agency and Service de Police del la Ville de Montreal.

 

According to the Statement of Facts filed in support of the plea documents, on March 29, 2017, a U.S. Customs and Border Protection Air and Marine Operations center official in Riverside, Calif. detected an aircraft that departed from the Bahamas and was traveling to Windsor, Ontario, Canada but had diverted to Gordon K. Bush Airport at Ohio University.

 

The official contacted the Athens County Sheriff’s Office, who, along with agents from HSI, executed a search warrant on the plane upon arrival. While doing so, investigators discovered approximately 132 kilograms or 290 pounds of cocaine.

 

Desjardins was the pilot and Ayotte was his passenger. The two men intended on flying the cocaine to Canada to then distribute, but discovered that the plane was having mechanical issues.

 

Change-of-plea hearings before U.S. District Judge Algenon Marbley have not yet been scheduled.

 

Posession with intent to distribute more than 5 kilograms of cocaine is a crime punishable by a range of 10 years to life in prison.

 

U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Deputy Criminal Chief Michael J. Hunter, who is representing the United States in this case.

 

# # #

Police officers in the Southern District of Ohio are diverse in every way but one: they put their lives on the line for us every day on the job. I am grateful for our officers’ diversity—and even more grateful for their one commonality.

 

The officers I’ve met and worked with in the Southern District of Ohio are diverse in almost every respect. They are men and women, many races, and many religions. Different officers hold different political viewpoints. They have different body types. Officers come from all kinds of different places. Some are young, and others are older. They have different kinds of education and experience. Almost any stereotype about police is bound to be wrong, or at least incomplete, in the face of this diversity.

 

Just as the police officers in the Southern District of Ohio are themselves diverse, so too are their agencies. There are federal, state, and local law enforcement agencies here. The geographic spaces for which different agencies are responsible vary widely in size, not to mention population, terrain, and demography. Some of the heads of these agencies are appointed; others are elected. Departments in our biggest cities may have a thousand or two thousand officers and civilian employees. The police departments in other of our municipalities might consist of a chief and one or two officers, perhaps part-time. So the police of the Southern District of Ohio work for diverse law enforcement agencies too.

 

Increasingly, moreover, yet a third vector of diversity for our police officers is in the kinds of duties we expect them to perform. The days when police officers could concern themselves only with patrolling the streets and ferreting out crime, if they ever existed, are long gone. Police work today requires officers to engage proactively in preventative social work. Law enforcement officers are on the front lines of engaging with populations suffering from mental health conditions. And officers must face and respond to the daily health and safety problems posed by addiction, including especially the dangers that addicted people pose to themselves.

 

But there is one thing that all police have in common: they put their own lives on the line to serve and protect our communities. That is the one thing that unites all police officers, regardless of their diversity from one another in so many respects. It is inherent in being a police officer.

 

Just last week, Kirkersville Police Chief Steven DiSario made the ultimate sacrifice in the performance of his duty. Responding to a call of an armed man outside a nursing home on Main Street, Chief DiSario engaged the gunman, who shot and killed him. The gunman then killed two other people before turning the weapon on himself.

 

Also last week, to our immediate north, East Liverpool Police Officer Chris Green accidentally touched fentanyl and overdosed. Responding to a traffic stop, he searched the car of two men arrested for drug trafficking, and in the course of the search, some white powder got on his shirt. When he later brushed it off, he passed out; four doses of naloxone were needed to revive him. The white powder turned out to be fentanyl, the synthetic opioid that is one 50–100 times stronger than heroin and that is ravaging our state.

 

Cincinnati Police Officer Kenneth Grubbs and Columbus Police Officer Patrick Shrodes were shot in the line of duty earlier this year. Fortunately, they are recovering from their injuries.

 

These four officers were and are as different from each as could be in so many respects. But they have one crucial thing in common: each put his life on the line—and, in the case Kirkersville Police Chief DiSario, tragically gave it—in the performance of his duty.

 

I thank all police officers for their dedication and honorable service.

 

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DAYTON – Michael Volf Ol, 44, of Xenia, Ohio pleaded guilty today in U.S. District Court to one count of making a false statement.

 

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 Office, and Randall Pendleton, Commander of the Air Force Office of Investigation, Field Investigation Squadron at Wright-Patterson Air Force Base, announced the plea entered into before U.S. District Judge Thomas M. Rose.

 

According to the Statement of Facts in this case, Ol had been employed as a civil service aeronautical engineer at Wright-Patterson Air Force Base since September 1993. In 2014, Ol knowingly lied on a background questionnaire for national security positions, stating that he had not had any close contacts with any foreign nationals within the previous seven years. In actuality, the defendant had multiple romantic contacts in October and December 2012 with a female foreign national in France and in Ohio, Pennsylvania, New York, New Jersey and Virginia – all while on official Air Force sponsored trips.

 

As part of the plea, Ol has agreed to resign from his civil service position with the United States Department of the Air Force. The parties involved in the case recommended a three-year term of probation and $5,000 fine as part of the plea agreement as well, which Judge Rose will consider at a future sentencing hearing.

 

U.S. Attorney Glassman commended the investigation of this case by the FBI and Air Force Office of Investigation, as well as Assistant United States Attorney Dwight Keller, who is representing the United States in this case.

 

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COLUMBUS, Ohio – A former law enforcement officer has been arrested and charged by criminal complaint with cyberstalking and deprivation of rights under color of law.

 

William P. Elschlager, 48, of Marietta, Ohio, was arrested yesterday evening by Washington County Sheriff’s Office deputies and is scheduled for an initial appearance today in federal court in Columbus at 2:30pm before U.S. Magistrate Judge Terrence P. Kemp.

 

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 arrest.

 

According to the affidavit filed in support of the criminal complaint, Elschlager was a lieutenant with the Ohio State Highway Patrol in Marietta, Ohio, where he was the post commander. He had been employed with the Ohio State Highway Patrol for approximately 19 years.

 

Elschlager and the wife of a fellow Ohio State Highway Patrol Trooper engaged in a sexual affair from April to September 2015, at which point the victim described Elschlager as being “creepy.” Specifically, according to the victim, she found a large ball of hair in the defendant’s home that he said he had made from hair he found in his house and that she believed to be her hair.

 

The victim said she also discovered digital folders on Elschlager’s iPad labeled with women’s names that included pictures of the women taken from social media accounts. For example, the folder in her name included pictures of the victim with her husband cut out.

 

Finally, the victim stated she would awake to Elschlager taking photographs of her sleeping when she did not know he was in the home with her.

 

Elschlager allegedly began stalking the victim in October 2015 after she ended their relationship. The affidavit alleges that he frequently followed the victim in vehicles, texted her knowledge of her whereabouts and showed up at her residence unannounced.

 

In December 2015, Elschlager allegedly placed a GPS tracking device on the victim’s vehicle and conducted an unlawful traffic stop of the victim, during which time he turned off his audio recording. Around this time, Elschlager also allegedly told the victim that he had named her and her son on his life insurance policy. He had obtained their personal information from the personnel file of the victim’s husband.

 

During that same month, the victim’s vehicle broke down due to a missing radiator cap and Elschlager arrived on the scene. Search warrants obtained by the Washington County Sheriff’s Office for Elschlager’s residence and electronic devices revealed Internet searches such as “how long can a car go without a radiator cap.”

 

The victim said she became increasingly fearful of Elschlager and that on one occasion when she noted he was carrying guns on his person he responded: “I always have a gun on me. You’ve just never known it.”

 

Subsequent search warrants and investigation by the Washington County Sheriff’s Office in January 2016 showed GPS tracking software on Elschlager’s personal cell phone, which had been tracking the victim’s vehicle for two months. Investigators discovered video recordings and photographs taken through the window of a residence in which the victim was located. They also revealed law enforcement information and photographs generated from the driver’s licenses of at least 10 females on Elschlager’s personal computer. The females confirmed that they were stopped by an Ohio State Highway Patrol Trooper on the dates of the photographs; they could not verify the name of the trooper that stopped them.

 

Cyberstalking is a crime punishable by up to five years in prison. Deprivation of rights under color of law carries a potential maximum sentence of one year 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 Attorney Jessica H. Kim, 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.

 

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COLUMBUS, Ohio – Mark Preston French, 42, of Westerville, Ohio was sentenced in U.S. District Court today to serve three months in prison and ordered to pay nearly $112,000 for defrauding an elderly client in a precious metals investment fraud.

 

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), announced the sentence imposed today by U.S. District Chief Judge Edmund A. Sargus, Jr.

 

French pleaded guilty in January 2016 to one count of wire fraud. According to court documents, French worked as a stockbroker between 1998 and 2013 and began investing in precious metals in 2008. An elderly woman from Greenville, Pa., who believed French was an investment advisor, was his client between 2000 and 2012.

 

In 2009, French advised his elderly client to open joint checking and savings accounts with him so he could purchase and sell precious metals on her behalf. French instructed his client to reinvest other securities she held by depositing funds totaling more than $1.3 million into these joint accounts. French used the funds to purchase gold and silver from Tulving Company in Newport Beach, Calif. but also embezzled $111,848.73 from the joint accounts.

 

In September 2012, the elderly client told French she wanted physical possession of her gold and silver, which French was storing in his Westerville home. Instead, French sold a majority of the precious metals back to Tulving Company, returning approximately $1 million back to his client but keeping part of the proceeds for himself. He also kept 11,942 ounces of silver purchased with his client’s funds, which was valued at more than $400,000.

 

U.S. Attorney Glassman commended the investigation by the FBI, as well as Deputy Criminal Chief Brenda Shoemaker, who represented the United States in this case.

 

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COLUMBUS, Ohio – Dennis K. Rawlins, 68, of Jackson, Ohio, was sentenced in U.S. District Court to 300 months in prison and a lifetime of supervised release for sexually exploiting a minor.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Franklin County Prosecutor Ron O’Brien, Reynoldsburg Police Chief Jim O’Neill, Westerville Police Chief Joseph Morbitzer and other members of the FBI’s Child Exploitation Task Force, announced the sentence handed down today by U.S. District Judge Michael H. Watson.

 

According to court documents, Rawlins was found in a motel room with a 15-year-old boy in January 2016. A search of digital media in the room revealed child pornography, messages between Rawlins and a co-defendant, Mark R. Heyd, and numerous photos of the boy victim in various stages of nudity. Rawlins admitted to taking the nude photos of the boy while in the hotel room and to engaging in sex acts with the boy while Heyd watched on webcam.

 

Rawlins pleaded guilty on August 24, 2016 to one count of sexual exploitation of a minor, specifically, using a minor to engage in sexually explicit conduct for the purpose of producing child pornography. He was also sentenced to a lifetime of supervised release.

 

Heyd, 61, of Kailua, Hawaii, was sentenced on March 7 to 270 months in prison for one count of conspiracy to produce child pornography. His case was unsealed today.

 

Heyd arranged for Rawlins and the victim to rent hotel rooms where Rawlins would engage in sex acts with the boy and Heyd would watch via web cam.

 

Both defendants faced enhanced sentences because of prior convictions related to the molestation of minor boys.

 

U.S. Attorney Glassman commended the cooperative investigation by the FBI Child Exploitation Task Force, as well as Assistant United States Attorney Heather A. Hill and Special Assistant U.S. Attorney Jennifer M. Rausch, Director of the Franklin County Special Victims Unit, who are representing the United States in this case.

 

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A federal grand jury returned an indictment today charging Laith Waleed Alebbini, 26, of Dayton, Ohio, with one count of attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Alebbini allegedly attempted to provide support in the form of personnel, namely himself, to ISIS.

Acting Assistant Attorney General for National Security Dana Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the indictment.

Alebbini was arrested on April 26 at the Cincinnati/Kentucky International Airport and charged with the same crime by criminal complaint. He has remained in custody since his arrest. A citizen of Jordan, Alebbini is a legal permanent resident of the U.S.

Attempting to provide material support to a foreign terrorist organization is punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

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

U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section, who are prosecuting the case.

DAYTON – A federal grand jury returned an indictment today charging Laith Waleed Alebbini, 26, of Dayton, Ohio, with one count of attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Alebbini allegedly attempted to provide support in the form of personnel, namely himself, to ISIS.

 

Acting Assistant Attorney General for National Security Dana Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the indictment.

 

Alebbini was arrested on April 26 at the Cincinnati/Kentucky International Airport and charged with the same crime by criminal complaint. He has remained in custody since his arrest.

 

Attempting to provide material support to a foreign terrorist organization is punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

 

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

 

U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section, who are prosecuting the case.

 

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COLUMBUS, Ohio – A federal grand jury has charged five individuals in an identity theft ring that allegedly used victims’ information to obtain and use new and existing in-store lines of credit at well-known retailers in an indictment returned here yesterday.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Columbus Police Chief Kim Jacobs, Jason Hayden, Acting Special Agent in Charge, United States Secret Service and other members of the Southern Ohio Financial Crimes Task Force announced the indictment.

 

Kwame E. McCauley, 35, of Canal Winchester, Ohio; Deangelo D. Simms, 26, of Reynoldsburg, Ohio; Shirley M. Dillen, 43, of Westerville, Ohio; Julie E. Ring, 38, of Columbus, Ohio and Robert S. Tingler, 32, of Columbus, Ohio were each charged with conspiracy to commit wire fraud. McCauley, the alleged leader of the ring, is also charged with 20 counts of wire fraud and two counts of aggravated identity theft. The other four co-defendants each face various charges of wire fraud and aggravated identity theft, as well.

 

The 24-count indictment alleges that from January 2014 until January 2016 the group bought store merchandise after fraudulently obtaining new and using existing credit from retail stores. McCauley allegedly obtained victims’ social security numbers and dates of birth. Afterwards, he ran their credit history reports from websites like creditkarma.com.

 

According to the indictment, McCauley provided false identification cards containing the victims’ information but actually bearing photographs of the co-defendants who were “shoppers.” The group would travel to various clothing and electronics retail stores in the Southern District of Ohio and elsewhere, including Indiana and Pennsylvania. Examples of the stores include Best Buy, Elder Beerman, Buckle, Menard’s, Meijer and Cabela’s.

 

The group would allegedly review the victims’ credit history reports and personal information prior to arrival at the retail stores so the defendants could answer any qualifying questions that the stores used to screen credit applicants. The group is alleged to have opened new and used existing lines of credit on approximately 80 separate occasions causing $150,000 of loss from the retailers.

 

Conspiracy to commit wire fraud and wire fraud are each crimes punishable by up to 20 years in prison in this case. Aggravated identity theft carries a mandatory term of imprisonment of two years for each count.

 

Defendants were arrested today by Task Force agents.

 

U.S. Attorney Glassman commended the investigation of this case by the IRS-CI, Columbus Police and other members of the Southern Ohio Financial Crimes Task Force, as well as Assistant United States Attorney Jonathan J.C. Grey, who is prosecuting the case.

 

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

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DAYTON – Charles G. Thomas, Jr., 27, of Dayton, was sentenced in U.S. District Court to 100 months in prison for possessing a firearm after being convicted of a felony crime.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.

 

According to the Statement of Facts in this case, between March and July 2016 Thomas possessed nine firearms, including seven pistols, a revolver and a shotgun. One of the firearms was possessed with a high capacity magazine. At least one of the weapons had previously been reported as stolen.

 

In 2010, Thomas was convicted of aggravated robbery with a deadly weapon, a felony offense, in Montgomery County Common Pleas Court.

 

Thomas pleaded guilty in December 2016 to one count of felon in possession of a firearm.

 

U.S. Attorney Glassman commended the cooperative investigation by ATF, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.

 

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COLUMBUS, Ohio – Charles A. Granberry, 40, of Columbus, was sentenced in U.S. District Court to 72 months in prison for conspiring to participate in a dog-fighting ring in central Ohio, illegally possessing a firearm and violating the terms of his supervised release.

 

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 Capital Area Humane Society Executive Director Rachel D.K. Finney announced the sentence handed down today by U.S. District Judge James L. Graham.

 

According to court documents, an undercover law enforcement officer met with Granberry and others over a two-week period at two houses in Columbus in March 2016. The officer saw evidence indicating that the house was 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.

 

Granberry described the fighting style of his dogs to the undercover officer and boasted about his dogs’ prowess during dogfights. He sold a dog to the undercover officer for $2,500 and advised that the dog could fight immediately because of its breeding and conditioning.

 

Officers 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.

 

Officers arrested Granberry and seized firearms and documents connected to the dog-fighting operation. Granberry – who was a manager or supervisor of the operation, directing activities and controlling the money – has been in custody since his arrest.

 

At the time of the search warrant, Humane Society officials took extreme measure 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.

 

“The cruelty involved in this case is significant,” U.S. Attorney Glassman said. “Mr. Granberry bred, raised, and sold dogs to be severely injured or maimed in dogfighting, and his sentence today shows that we take such illegal behavior seriously.”

 

“This investigation and prosecution should send a strong zero-tolerance message to those individuals who conspire or commit crimes in violation of the Animal Welfare Act, illegally possess firearms and drugs or attempts to defraud other USDA programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to individuals that these matters will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in public safety and the enforcement of these statutes.

 

The USDA-OIG applauds the steadfastness resolution of the Columbus Police Department in this joint investigation and U.S. Attorney's Office to also prosecute these matters.”

 

Last week, a federal grand jury charged Dwayne T. Robinson, Jr., 33, and Henry Gerard James Hill, Jr., 21, both of Columbus, with conspiring to participate in the dog-fighting ring. Randall J. Frye, 58, also of Columbus, has pleaded guilty in U.S. District Court to the same charge.

 

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

 

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