Southern District of Ohio

COLUMBUS, Ohio – Cheryl L. Emerson-Chase, 52, of Powell, pleaded guilty in U.S. District Court to one count each of wire fraud and money laundering.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into before U.S. District Magistrate Judge Smith Terence P. Kemp.

According to the statement of facts presented in this case, Emerson-Chase was employed as the operations manager for PCM, Inc. (formerly known as SARCOM, Inc.), a direct marketer of technology products, services and solutions to businesses, governments, educational institutions and individual consumers.

Emerson-Chase was assigned primarily PCM’s account for Nationwide Mutual Insurance Company and handled the day-to-day operational sales relationship with Nationwide.

The defendant began to steal laptops and tablets from PCM that were intended for delivery to Nationwide and provided fictitious purchase orders to PCM’s employees, instructing them to create false internal sales orders in PCM’s computer system. The two companies identified at least 93 fake purchase orders created in connection with the scheme.

Emerson-Chase then used the ordered computers for her own use or the use of friends and family members, sold them directly to third parties, or delivered them to an associate to sell to third parties.

In total, Emerson-Chase stole more than 600 items of computer hardware having an aggregate value of nearly $597,000.

Wire fraud and money laundering are each crimes punishable by up to 20 years in prison.

Acting 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.

COLUMBUS, Ohio – Cheryl L. Emerson-Chase, 52, of Powell, pleaded guilty in U.S. District Court to one count each of wire fraud and money laundering.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into before U.S. District Magistrate Judge Smith Terence P. Kemp.

According to the statement of facts presented in this case, Emerson-Chase was employed as the operations manager for PCM, Inc. (formerly known as SARCOM, Inc.), a direct marketer of technology products, services and solutions to businesses, governments, educational institutions and individual consumers.

Emerson-Chase was assigned primarily PCM’s account for Nationwide Mutual Insurance Company and handled the day-to-day operational sales relationship with Nationwide.

The defendant began to steal laptops and tablets from PCM that were intended for delivery to Nationwide and provided fictitious purchase orders to PCM’s employees, instructing them to create false internal sales orders in PCM’s computer system. The two companies identified at least 93 fake purchase orders created in connection with the scheme.

Emerson-Chase then used the ordered computers for her own use or the use of friends and family members, sold them directly to third parties, or delivered them to an associate to sell to third parties.

In total, Emerson-Chase stole more than 600 items of computer hardware having an aggregate value of nearly $597,000.

Wire fraud and money laundering are each crimes punishable by up to 20 years in prison.

Acting 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.

WASHINGTON – An Ohio lobbyist was sentenced today to 15 months for engaging in extortion in connection with a bribery and fraud scheme involving conduit contributions to the campaigns of elected officials.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division made the announcement.

John P. Raphael, 61, of Columbus, Ohio, was sentenced by U.S. District Judge Michael H. Watson of the Southern District of Ohio.  Raphael pleaded guilty to a one-count information charging him with a violation of the Hobbs Act on Oct. 15, 2015. 

According to the plea agreement, Raphael was a consultant and lobbyist based in Columbus.  From March 2005 to February 2013, a red light camera enforcement company engaged Raphael to seek and obtain lucrative contracts with the cities of Columbus and Cincinnati, he admitted.  During that time, according to admissions made in his plea, Raphael conveyed to the company specific solicitations for campaign contributions on behalf of elected officials in Columbus and Cincinnati, and repeatedly pressured and induced the company to make contributions by advising the company that it would lose its contracts if it did not.

Raphael admitted that, as a result of his actions, the company made over $70,000 in campaign contributions, which were funneled through Raphael in his own name and in the names of his family members, friends and business associates. 

Karen L. Finley, the former CEO of the red light camera vendor, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud. 

The FBI Cincinnati Division’s Columbus Resident Agency investigated the case with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation.  Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio are prosecuting the case.

An Ohio lobbyist was sentenced today to 15 months for engaging in extortion in connection with a bribery and fraud scheme involving conduit contributions to the campaigns of elected officials.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division made the announcement.

John P. Raphael, 61, of Columbus, Ohio, was sentenced by U.S. District Judge Michael H. Watson of the Southern District of Ohio.  Raphael pleaded guilty to a one-count information charging him with a violation of the Hobbs Act on Oct. 15, 2015. 

According to the plea agreement, Raphael was a consultant and lobbyist based in Columbus.  From March 2005 to February 2013, a red light camera enforcement company engaged Raphael to seek and obtain lucrative contracts with the cities of Columbus and Cincinnati, he admitted.  During that time, according to admissions made in his plea, Raphael conveyed to the company specific solicitations for campaign contributions on behalf of elected officials in Columbus and Cincinnati, and repeatedly pressured and induced the company to make contributions by advising the company that it would lose its contracts if it did not.

Raphael admitted that as a result of his actions, the company made over $70,000 in campaign contributions, which were funneled through Raphael in his own name and in the names of his family members, friends and business associates. 

Karen L. Finley, the former CEO of the red light camera vendor, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud. 

The FBI Cincinnati Division’s Columbus Resident Agency investigated the case with the assistance of IRS-Criminal Investigation and the Ohio Bureau of Criminal Investigation.  Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio are prosecuting the case.

COLUMBUS, Ohio – Eric D. Chavis, 24, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to produce child pornography.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, announced the plea entered into before U.S. District Judge Michael H. Watson.

According to the indictment in this case, Chavis recruited minor victims to engage in sexually explicit conduct in his rap music videos. Chavis then posted those videos via the Internet on websites including Facebook.com, Pornhub.com, Youtube.com and Instagram.com.

He conspired with co-defendants Lamont D. Abbington, 30, of Kissimmee, Fla., Carlton S. Jackson, 30, of Toledo, and Mareekus E. Davis, 22, of Columbus, to record sexually explicit videos of at least three minor females. Chavis took an active role in directing the videos and actively distributed them on the various social media websites and sold DVDs of the videos from various pornography websites.

Chavis faces a sentencing range of 15 years up to 30 years in prison, as well as a term of supervised release of at least five years up to a lifetime of supervision.

Acting U.S. Attorney Glassman commended the cooperative investigation by the Central Ohio Human Trafficking Task Force – which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department and the Delaware County Prosecutor's Office – as well as Assistant United States Attorneys Heather A. Hill and Jessica H. Kim, who are representing the United States in this case.

COLUMBUS, Ohio – Thomas E. Shaffer, 63, of Columbus, was sentenced in U.S. District Court to 200 months in prison and five years of supervised release for robbery and armed robbery at six locations in Central Ohio.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting 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 Division, Columbus Police Chief Kim Jacobs, Delaware County Sheriff Russell L. Martin, Gahanna Police Chief Dennis Murphy and Acting Worthington Police Chief  Jerry L. Strait, Jr. announced the sentence handed down today by U.S. District Judge Michael H. Watson.

According to court documents, Shaffer used a firearm during robberies at five restaurant/bars and one grocery store in Central Ohio. On March 15, 2014, he robbed The Pub on West Johnstown Road in Gahanna, Ohio. On May 3, 2014, he committed armed robbery at Halftime Tavern on Bethel Road in Columbus. Likewise, he took cash during a robbery on August 16, 2014 at Brew-Stirs on 23, located on Dillmont Drive in Columbus. The following month, he robbed the Lazy Chameleon on Presidential Parkway in Powell. On November 23, 2014, he committed armed robbery at Villa Nova on North High Street in Worthington. Finally, on December 7, 2014, Shaffer stole money from Aldi on Orange Center Drive in Lewis Center.

The defendant was indicted by a grand jury on April 16, 2015.

Shaffer pleaded guilty on October 30, 2015 to six counts of interference with interstate commerce by violence and one count of brandishing a firearm during a crime of violence. He also agreed to forfeit his Smith and Wesson pistol.

Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys David DeVillers and Brian J. Martinez, who are representing the United States in this case. 

WASHINGTON – Mark T. D’Alessandro, Executive Assistant United States Attorney and Kimberly R. Robinson, Special Assistant United States Attorney, both employees of the United States Attorney’s Office for the Southern District of Ohio, were two of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

The Southern District of Ohio was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white-collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”

                “We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson. 

                Mr. D’Alessandro was recognized for his many contributions to the management and success of the United States Attorney’s Office for the Southern District of Ohio. He has served as both a criminal and a civil Assistant United States Attorney, as well as Deputy Civil Chief, Civil Chief, First Assistant United States Attorney, and Executive Assistant United States Attorney. He has also served as a trusted resource for several United States Attorneys. His ability to quickly and expertly respond to the many unique and complex issues faced by the Southern District of Ohio is among his most distinguishing characteristics, as is his tireless dedication to the district. 

                Ms. Robinson was recognized for her outstanding contributions as a Special Assistant United States Attorney for the Southern District of Ohio. Over the last two years, Ms. Robinson has served as sole or lead counsel for the United States in more than a dozen appeals, arguing two of them, and prevailing in every one that has been decided. This year, Ms. Robinson’s appellate advocacy resulted in the affirmance of four convictions and life sentences for drug distributions resulting in death, despite an intervening Supreme Court decision. The appeal followed a 35-day trial, and she handled it for the first time on remand from the Supreme Court. Ms. Robinson was also a member of a trial team that secured convictions on all counts against three defendants in a multi-week public corruption case this year.

                “Mark D’Alessandro and Kim Robinson exemplify the excellence for which the U.S. Attorney’s Office for the Southern District of Ohio strives in its pursuit and administration of justice,” said Acting United States Attorney Benjamin C. Glassman. “Each is tremendously deserving of this award, and I am thrilled to be able to join Deputy Attorney General Yates and Director Wilkinson in recognizing them today. It is a testament to the superior work of our office that both Mark and Kim are being recognized as among the most outstanding in the nation at what they do.”

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

COLUMBUS, Ohio – The United States has reached a settlement agreement with the Village of Byesville, Ohio in Guernsey County after initiating a compliance review under the Americans with Disabilities Act (ADA).

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, announced the settlement finalized last week.

The U.S. Attorney’s Office for the Southern District of Ohio initiated a compliance review in the village after receiving a citizen complaint stating that many buildings and facilities in the village were inaccessible to individuals with disabilities.

Specifically, the review included: the Byesville Village Hall, sidewalks and curb cuts near the Village Hall, the Byesville Village Park and Byesville Water Treatment Plant. Based on its review, the United States concluded that qualified individuals with disabilities are excluded from participation in or denied the benefits of many of Byesville’s programs, services or activities.

The settlement agreement sets out general and specific remedies, which include making facilities readily accessible to individuals with disabilities, by making modifications to sidewalks, curb ramps, entry and internal doors, signage, door knobs, counters, maneuvering clearance, restrooms and the parking lot at Village Hall, among other things.

Changes to be made at the Village Park will include accessible parking spaces with signage, modifications to the vending machines and accessible routes to picnic tables, benches, drinking fountains, park shop, park pavilion and gazebo.

Remedies at the Water Treatment Plant include modifications to the restroom and parking lot spaces, slope and access.

“This settlement represents our commitment both to ensuring full compliance with the ADA and working cooperatively with local governments and businesses to guarantee that compliance, thereby ensuring equal access for all Americans,” Acting U.S. Attorney Glassman said.

The agreement will remain in effect for three years and is effective immediately.

Acting U.S. Attorney Glassman commended Byesville Mayor Jay Jackson and Brennan Dudley, Village Administrator, for their cooperation, as well as Assistant U.S. Attorney John J. Stark and Special Assistant U.S. Attorney Leah M. Wolfe, who are representing the United States in this matter. He also recognized the efforts of Department of Justice Division of Civil Rights Attorney Elizabeth Johnson and Department of Justice Architect Thomas Fodor.

DAYTON – Shellie Woods, 42, of Dayton, was sentenced in U.S. District Court to 300 months in prison for conspiracy to commit kidnapping as well as robbery.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Dayton Police Chief Richard Biehl announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.

According to court documents, between late 2011 and early 2012, Woods and several others worked together to rob businesses in Southern Ohio. The co-defendants include: Terrell Mabry, 46, of Dayton; Dion Gullatte, 43, of Dayton, and Eric Black, 39, of Dayton.

On November 10, 2011, they completed the robbery of St. Elizabeth pharmacy, a store in the Dayton area that sold prescription drugs. The four men unlawfully entered the home of an employee of the pharmacy and seized and restrained the employee and his wife before demanding that the employee provide them with security codes and keys necessary to gain access to the pharmacy.

Gullatte used the codes to steal hundreds of prescription pills, including oxycodone, from the pharmacy. He and Woods took the pills to a Dayton residence where they split the robbery proceeds with Black and Mabry.

On one other occasion, Woods, Gullatte and Mabry worked together with another person, Jason Brice, 29, of Columbus, to rob the US Bank on Gettysburg Avenue in Dayton. Again the defendants unlawfully entered the home of an employee, a bank teller, to hold her and her family hostage until she agreed to help them gain access to the bank’s vault.

They held the teller’s family hostage at her home for almost twenty-four hours before attempting to move the family to another location.  The defendants ultimately instructed the teller to enter the bank and to request that the bank give her abductors money to secure the release of her family.

Woods pleaded guilty on June 23, 2015 to conspiracy to commit kidnapping as well as robbery. Brice was sentenced on December 16, 2014 to 124 months in prison and Mabry was sentenced yesterday to 168 months in prison for their roles in the scheme.  Black and Gullatte are scheduled for sentencing in the coming weeks.

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

DAYTON – Gary Swisher, Jr., 44, of West Carrollton, Ohio, was sentenced in U.S. District Court to 40 months in prison for possessing a firearm after having been convicted of a felony.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down today by U.S. District Judge Timothy S. Black.

According to court documents, in May, June and October of 2015, Swisher illegally sold multiple firearms to an individual in the Dayton area. When he possessed the firearms, he had been previously convicted of felony offenses – namely, aggravated burglary and felonious assault.

He pleaded guilty on December 30, 2015 to possession of a firearm after having been previously convicted of a felony offense.

Swisher was also ordered to complete three years of supervised release and pay a $7,500 fine.

Acting U.S. Attorney Glassman commended the investigation by ATF, as well as Assistant United States Attorney Andrew J. Hunt, who is representing the United States in this case. 

COLUMBUS, Ohio – Rashod D. Todd, 28, of Columbus, pleaded guilty in U.S. District Court to conspiracy to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.

According to court documents, between 2012 and November 2015, Rashod Todd, Dajaun Brooks, Jordon Herring and Stephvon Covington conspired to possess and distribute Oxycodone from Las Vegas to Columbus, as well as conspiring to commit money laundering by concealing the source of the proceeds from the narcotics trafficking.

Todd obtained bulk amounts of Oxycodone from middle men. The Oxycodone was then transported and sold in Columbus for profit on the street to drug users. Todd frequently directed other members of the conspiracy to conceal the Oxycodone and cash inside containers before they were shipped through the U.S. mail. Additionally, on numerous occasions, Todd personally carried Oxycodone on commercial airline flights between Las Vegas and Columbus where the Oxycodone was distributed on the streets of Columbus through a network of individuals at Todd’s direction.

Todd attempted to conceal his illicit proceeds by depositing money into the bank accounts of other individuals. These cash deposits funded the purchase of airline tickets that enabled couriers to transport Oxycodone to Columbus and to transport bulk amounts of cash back to Todd in Las Vegas.

Todd pleaded guilty to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Each crime is punishable by up to 20 years in prison.

On March 16, 2016 Danny R. Williams, 29, and Sukita M. Williams, 43, both of Las Vegas, pleaded guilty in U.S. District Court to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. A sentencing date has not been set.

According to court documents, since November 2012, the pair went to physicians to obtain fraudulent prescriptions and either arranged for others to do the same or used middlemen to obtain Oxycodone. Once they obtained bulk amounts of the drug, the pills were transported to Columbus via the mail or on commercial airlines to be sold on the street to drug users. In addition, the couple attempted to conceal their illicit proceeds by depositing money into bank accounts of other individuals.

On May 4, 2016 Joquline D. Harris, 28, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to commit money laundering. A sentencing date has not been set.

Harris conducted financial transactions to funnel the proceeds of the illegal distribution of Oxycodone through two separate Ohio bank accounts opened by Sukita Williams, to bank accounts owned by Sukita Williams in Las Vegas. Harris further utilized the monies contained in these bank accounts and other illicit drug proceeds from Sukita Williams to purchase airline tickets for members of the drug trafficking organization to facilitate the transporting of Oxycodone and drug proceeds between Las Vegas and Columbus. In addition, Harris also utilized these illegal proceeds to make vehicle payments to a financial institution in Ohio for a vehicle that Sukita Williams operated in furtherance of drug and money laundering conspiracy.

On April 19, 2016, Dontonyo Courtney, 21, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to possess with intent to distribute Oxycodone. A sentencing date has not been set.

Also, today, Alfred David James, Sr., 35, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to possess with intent to distribute Oxycodone. A sentencing date has not been set.

“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Acting U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as OCDETF Chief Michael J. Hunter, who is representing the United States in this case.

CINCINNATI – Steven J. Porges, 52, of Park City, Utah pleaded guilty in U.S. District Court to one count each of wire fraud and income tax evasion.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, FBI, Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.

According to court documents, between 2007 and October 2014 Porges devised a scheme to defraud KAO Brands Company, now known as Kao USA Inc. (KAO), of money and property by means of false and fraudulent pretenses. As a result of his conduct, the defendant caused a loss to KAO of more than $1 million.

KAO, with its principal office located in Cincinnati, Ohio, is a manufacturer and supplier of beauty care products. KAO promotes its products through promotional offers, which often include using grocery store end caps to showcase its products. The company uses third-party vendors to advertise and place its promotional products.

Porges was employed by KAO as a National Account Manager beginning in 2002, until his termination on October 9, 2014. In that capacity, he negotiated with third-party vendors to secure shelf space for KAO's products in retail stores, and managed KAO's contracts with those vendors. Porges worked remotely from his home in Park City, Utah.

Porges purchased American Express gift cards, generally in the amount of $2,000 per card, from third-party vendors. The vendors sent the gifts cards and invoices directly to Porges’ home. Porges purchased the gift cards on the premise that he was acting on behalf of KAO to provide the gift cards to retailers as incentives to run KAO promotions.  In reality, KAO did not authorize the purchase of the gift cards, and used the majority of the gift cards for personal expenses.

Porges altered the invoices by falsely representing on the invoices that he had purchased shelf space, end cap space and promotional offers instead of gift cards. At times, Porges instructed the vendors on what wording to use on the invoices. Porges then faxed or emailed the false invoices to KAO for payment. Based on the false invoices provided by Porges, KAO made payments directly to the vendors for what it believed were legitimate business expenses without knowledge that Porges had purchased gift cards for his own personal benefit.

Porges paid various personal expenses with the fraudulent proceeds, including electric bills, dry-cleaning, Starbucks purchases, vacations, airline and sporting event tickets and jewelry.

For each of the calendar years 2009 through 2014, Porges willfully attempted to evade the income taxes due on the money he took from KAO by filing false income tax returns which did not include the wire fraud proceeds he had received.

For those years, he claimed taxable income in the amount of $779,052 and that the amount of tax due and owing was $137,697. The investigation revealed that Porges knew his true taxable income tax was in the amount of $1,608,568, resulting in an additional tax due and owing of $256,577.

Wire fraud is punishable by up to 20 years in prison, and income tax evasion is punishable by up to five years imprisonment.

"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Acting U.S. Attorney Glassman commended the cooperative investigation by the IRS and FBI, as well as Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.

CINCINNATI – A federal grand jury has charged Angelia Zwick, a/k/a Angelia Strunk, 45, of Cincinnati, with one count of wire fraud and three counts of willfully filing a false income tax return with the Internal Revenue Service (IRS).

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the indictment that was returned today.

The indictment alleges that from approximately July 2009 through May 2013, Angelia Zwick worked for a Cincinnati employer and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick allegedly wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC (“Amerihealth”), a company owned by Zwick.

Zwick allegedly took the refunds intended for her employer’s clients and diverted those refunds into bank accounts controlled by Zwick in the amount of approximately $328,000.

It has been alleged that Zwick filed false income tax returns with the IRS for the 2010, 2011, and 2012 income tax years. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer and she claimed false expenses for Amerihealth. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.

“No matter what the source of income, all income is taxable,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy.”

Wire fraud is a crime punishable by up to 20 years imprisonment, and filing a false income tax return with the IRS in a crime punishable by up to three years imprisonment.

Acting U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy 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.

DAYTON – Amy Scarpelli, 49, of West Carrollton was sentenced to 66 months in prison for embezzling more than $1 million from U.S. Bank between 2011 and 2014.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, Miamisburg Police Chief John Sedlak, and members of the Southern Ohio Electronic and Financial Crimes Task Force, announced the sentence imposed today by United States District Judge Walter H. Rice.

Scarpelli pleaded guilty on April 22, 2015 to a bill of information charging her with one count of embezzling more than $1 million from U.S. Bank while serving as manager of the Miamisburg branch. According to court documents, Scarpelli admitted to making fraudulent draws against a line of credit for a local business that previously held accounts at U.S. Bank. She wrote and cashed checks, covering her tracks by making false entries in the bank’s computer system. Scarpelli structured the transactions in amounts less than $50,000 to avoid the need for approval by a second bank employee, in further efforts to prevent detection of her scheme.

Court documents showed that Scarpelli used the stolen funds to purchase four cars, six motorcycles, three boats, two travel trailers, and a golf cart, in addition to several real estate purchases, all of which were forfeited as part of her plea agreement.

Scarpelli was ordered to pay $5.2 million in restitution and she must serve five years on supervised release following her prison term.  She will also be required to pay back taxes on the unreported income from her embezzlement scheme.

Acting U.S. Attorney Glassman commended the investigation of this case by Secret Service agents and Miamisburg police investigators, and Assistant United States Attorneys Sheila Lafferty and Brent Tabacchi, who prosecuted the case.

CINCINNATI – Three Cincinnati men were sentenced in U.S. District Court yesterday for charges related to armed robbery.

Aaron Murray, 22, and Savoy Carpenter, 21 were each sentenced to 300 months in prison and James Crawford, 22, was sentenced to 54 months in prison.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, announced the sentences handed down by U.S. District Court Judge Susan J. Dlott.

 

The agencies involved in the investigation include:

Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

Cincinnati Police Department

Colerain Police Department

Covington Police Department

Hamilton County Police Association SWAT

Hamilton County Prosecutor’s Office

Hamilton County Sheriff’s Office

Kenton County Sheriff’s Office

Sharonville Police Department

Springfield Township Police Department

Woodlawn Police Department

 

According to court documents, the three participated in the robbery of the Micro Center electronics store on Mosteller Road in Cincinnati on August 17, 2014, taking approximately $29,000. Specifically, Murray and Carpenter planned and performed the robbery. They mapped out escape routes and rode to the store together.

During the robbery, Murray ordered several customers and employees to the ground, pointed a firearm at the manager of the store and demanded that he take him to the safe. He ordered the manager to empty the contents of the safe into a black trash bag.

Upon fleeing the scene, Murray and Carpenter abandoned Carpenter’s car and ran into a nearby wooded area, where they called Crawford and asked that he come to their rescue. Murray gave Crawford $270 from the proceeds for picking them up and driving them to safety.

Murray also robbed Fifth Third Bank on Ferguson Road in Cincinnati at gunpoint on October 15, 2014, taking approximately $10,900.

Carpenter brandished a firearm while robbing the Family Dollar on Ferguson Road in Cincinnati on October 29, 2014. After an employee advised that he could not open the safe, Carpenter demanded the employee empty the cash register, and took $167 in cash. Nine days later, Carpenter robbed the same store by gunpoint again. During his second robbery at the store, he passed out shopping bags to customers and encouraged them to steal from the store as well. As he was approaching the store, an individual called 911 and Carpenter was apprehended after a brief foot chase.

“These were hostile takeover robberies that terrorized multiple victims,” Acting U.S. Attorney Glassman said. “People who commit crimes like this should expect to end up spending a long time in federal prison. These are serious crimes that warrant the serious penalties that the district court meted out today.”

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

DAYTON – Richard C. Webber, 54, of Huber Heights, Ohio, pleaded guilty in U.S. District Court to one count of possession of child pornography.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Montgomery County Sheriff Phil Plummer announced the plea entered into today before Chief U.S. Magistrate Judge Sharon L. Ovington.

According to court documents, Webber used “Peer-to-Peer” software and file-sharing programs and applications – including ARES, LimeWire and NewsBin, as well as Windows – to obtain, download, view, possess with intent to distribute, share and transfer child pornography. Webber possessed videos depicting child pornography on a shared file folder on his home desktop computer and various storage devices in his home in Huber Heights. Upon executing a search warrant, investigators discovered more than 1,200 pictures and 170 video files of child pornography, including ones involving prepubescent minors.

Webber was charged on March 25, 2016 by a Bill of Information. Sentencing is set for 2pm on August 9 before U.S. District Court Judge Walter H. Rice.

Possession of child pornography involving prepubescent minors carries a potential maximum custodial sentence of 20 years in prison and at least five years up to a lifetime of supervised release. Webber will also be required to register as a sex offender.

This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt and First Assistant United States Attorney Vipal Patel, who are representing the United States in this case.

COLUMBUS, Ohio – Ramiro Nonato Mendoza, 39, of Columbus, was sentenced in U.S. District Court to 160 months in prison for heroin and cocaine charges.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio State Highway Patrol Superintendent Paul Pride, Columbus Police Chief Kim Jacobs, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Donald J. Soranno, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Franklin County Sheriff Zach Scott, announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.

Mendoza was one of 22 individuals charged by a superseding indictment in April 2015. According to court documents, the group operated a drug trafficking ring that involved numerous kilograms of heroin, cocaine, methamphetamine and marijuana. The case also involved the illegal employment of unauthorized aliens and the possession of numerous firearms.

The defendants in this case attempted to launder their drug proceeds by purchasing vehicles, including a Chevrolet Corvette, Cadillac Escalade, GMC Sierra and Acura TSX. More than $208,000 and 11 firearms were seized during federal search warrants in connection with this case.

Mendoza pleaded guilty on November 4, 2015 to one count of conspiracy to possess with the intent to distribute more than one kilogram of heroin and more than five kilograms of cocaine and one count of money laundering.

Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys Timothy D. Prichard and David J. Bosley, who are representing the United States in this case. 

DAYTON – David Pate, 28, of Dayton, was sentenced in U.S. District Court to 90 months in prison for possessing a firearm after having been convicted of a felony.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Dayton Police Chief Richard Biehl, Donald J. Soranno, 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 Division, who are all members of the Community Initiative to Reduce Gun Violence, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.

According to court documents, on November 2, 2015, Dayton Police started to follow Pate as he operated a vehicle. Pate sped away and crashed into a fence before fleeing on foot. He was ultimately arrested and officers found a semi-automatic pistol under the driver’s seat of his vehicle. Pate had been convicted of felony offenses in 2009 and 2011, including trafficking in heroin and felonious assault.

He pleaded guilty on December 29, 2015 to a Bill of Information charging him with one count of possession of a firearm by a convicted felon.

Acting U.S. Attorney Glassman commended the cooperative investigation by those involved in the Community Initiative to Reduce Gun Violence, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case. 

COLUMBUS, Ohio – Malek B. Aliane, 34, previously of Columbus, was sentenced in U.S. District Court on one count each of mail fraud and presenting false claims to the Internal Revenue Service (IRS).

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, James Vanderberg, U.S. Department of Labor Office of Inspector General, and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service’s (USPIS) Cincinnati Field Office, announced the sentence handed down by U.S. District Judge Gregory L. Frost.

Aliane was sentenced to 36 months in prison, three years of supervised release, and was ordered to pay $90,297.26 in restitution to the IRS.

According to court documents, from 2013 through 2015, while in federal prison or on supervised release, Aliane filed false personal income tax returns, false personal amended income tax returns, and false corporate income tax returns with the IRS. He filed six returns in total which claimed false tax refunds through fraudulent federal income tax withholdings. Aliane created fictitious W-2 and 1099 forms setting forth large federal tax withholding amounts.

In 2013 and 2014, while in prison, Aliane mailed paper returns to the IRS. In 2015, while on supervised release, he electronically filed the returns.

Three false Forms 1040 and/or Forms 1040X for the tax years 2012, 2013 and 2014 claimed a total of $94,133.87 in bogus refunds. The other three were false Forms 1120 for Aliane’s business, MB Aliane Real Estate, LLC, for the years 2012, 2013 and 2014 claiming $422,185.00 in false refunds.

Also, from February 1, 2015, through June 23, 2015, Aliane used personal identification information of other individuals in order to file false, fictitious and fraudulent unemployment insurance (UI) applications with the Ohio Department of Job and Family Services (ODJFS) upon the purported employer account of JLB Financial Group.

On May 12, 2015, Aliane registered the fictitious employer account of JLB Financial Group with the ODJFS. This employer account was registered with backdated liability dates and no contributions having been paid. Seven individuals were listed as employees of JLB Financial Group with wages from the first quarter of 2014 through the first quarter of 2015; however, those seven individual employees were all incarcerated before and during the aforementioned wage period. None of them ever actually worked for JLB. Seven individual UI claims were filed on the business account, and the government contends that the potential unemployment benefits to be paid on those claims totals $77,168

“The schemes perpetrated by Mr. Aliane systematically defrauded the government and the taxpaying public,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “At the IRS, protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”

Acting U.S. Attorney Glassman commended the cooperative investigation by the IRS-CI, Department of Labor and USPIS, as well as Assistant United States Attorney Daniel Brown, who is representing the United States in this case.

COLUMBUS, Ohio – Acting U.S. Attorney Benjamin C. Glassman, in partnership with the Ohio Department of Rehabilitation and Correction Office of Reentry and the Ohio Association of Local Reentry Coalitions, convened professional reentry stakeholders from across the District to discuss best practices and partnerships moving forward.

As part of the Obama Administration’s commitment to strengthening the criminal justice system, the Department of Justice designated the week of April 24-30, 2016, as National Reentry Week. National Reentry Week events are taking place in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands.  U.S. Attorney’s Offices alone are hosting more than 200 events and Bureau of Prisons facilities are holding more than 370 events.

“Too often, justice-involved individuals who have paid their debt to society confront daunting obstacles to good jobs, decent housing, adequate health care, quality education, and even the right to vote,” said Attorney General Lynch.  “National Reentry Week highlights the many ways that the Department of Justice – and the entire Obama Administration – is working to tear down the barriers that stand between returning citizens and a meaningful second chance – leading to brighter futures, stronger communities, and a more just and equal nation for all.”

More than 50 individuals representing 30 local, state and federal government agencies and service providers participated, including leadership from the U.S. District Court, Federal Probation Office, Governor John Kasich’s Office and Franklin County Commissioner Marilyn Brown’s Office.

“Reentry is a matter of both public safety and justice, and we are committed to it,” Acting U.S. Attorney Glassman said. “In this, as in so many areas, we are at our best when we collaborate, share information, and work together. Today’s session is a step forward in connecting the many worthy efforts at strengthening reentry in Ohio at the local, state, and federal levels. I am proud to work with all of these partners in support of making Ohio a safer and fairer place for all of our citizens, including those returning home after a term of incarceration.”

The group committed to building more effective partnerships moving forward between every level of government by formalizing information sharing and reconvening at least annually.

To join future efforts, contact Jennifer Thornton at jennifer.thornton@usdoj.gov.

COLUMBUS, Ohio – Shane M. Mauger, 41, of Columbus, has agreed to plead guilty in U.S. District Court to conspiracy to deprive persons of civil rights and federal program theft.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, John F. Oleskowicz, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General, Chicago Field Office, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ohio Attorney General Mike DeWine announced the case today.

According to the statement of facts, Mauger was employed as a police officer with the Reynoldsburg Division of Police during the time of his offenses. Since at least November 2006, Mauger conspired with at least one other person to steal money and property in his capacity as a police officer. The money and property he stole came from the execution of search warrants, the execution of consent searches and other police actions. In total, the conspirators stole between $150,000 and $250,000 of money and property.

Mauger and at least one other person also filed false paperwork as part of the conspiracy. Mauger caused search warrant affidavits to be submitted to judges, knowing the affidavits contained false statements. For example, Mauger caused an affidavit to be filed that stated marijuana had been found in a trash pull at a residence, which he knew that in fact no marijuana had been found. He then participated in the execution of a resulting search warrant, which he knew was based on false information. Mauger also conspired with at least one other person to cause police reports to underreport how much money had been found in search warrants. The police reports excluded the amount of money the conspirators unlawfully seized.

By stealing money and property and by causing false statements to be made in affidavits in support of search warrants, Mauger oppressed persons’ Fourth and Fourteenth Amendment right to be free from unreasonable searches and seizures and their Fourteenth Amendment right not to be deprived of property without due process of law.

Each of the crimes carries a potential maximum sentence of 10 years in prison.

An arraignment hearing is yet to be scheduled in U.S. District Court.

Acting U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Bureau of Criminal Investigation (BCI), Department of Justice OIG and DEA and Assistant United States Attorneys Peter K. Glenn-Applegate, Salvador A. Dominguez, and Jessica W. Knight, who are representing the United States in this case.

CINCINNATI – In recognition of the U.S. Department of Justice declaring the first National Reentry Week April 24-30, 2016, representatives of the Department of Justice, federal and local governmental agencies and politicians, employers and service providers are gathering to provide information to individuals with a criminal background. The summit will cover: what employers are looking for and how to find work with a criminal record, knowing your rights after reentry, financial responsibility, child support and parenting.

 

*Note: Agenda is attached and media are welcome throughout any portion of the event.

 

The summit will be held:

 

TOMORROW: APRIL 26, 2016

 

WHEN:           10:00 A.M. to 3:00 P.M.

                                 

 

WHERE:        Great American Ball Park (Main Gate entrance; free parking in underground garage)

                        Fox Sports Champions Club (located on first-base line on the Club Level)

                        100 Joe Nuxhall Way

                        Cincinnati, Ohio 45202

 

WHO:             Acting U.S. Attorney Benjamin C. Glassman

                        Cincinnati Mayor John Cranley

                        Hamilton County Commissioner Todd Portune

                        Mike Davis, Administrator of the Office of Reentry, Ohio Department of Rehabilitation and   Corrections

                       

                                                                      

Room available beginning at 9:00 A.M. No TV lighting or multbox will be available.

CINCINNATI – A federal grand jury has charged three Cincinnati residents with distributing heroin and/or fentanyl that resulted in the overdose deaths of at least three individuals. Three other individuals were charged with distributing heroin and/or fentanyl that caused serious physical harm, including non-fatal overdoses.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Coroner Dr. Lakshmi Sammarco and other members of the Hamilton County Heroin Coalition announced the indictments.

“Heroin and, increasingly, fentanyl are literally killing people in our community,” Acting U.S. Attorney Glassman said. “We are committed to using every tool at our disposal, including federal resulting-in-death charges where appropriate, to combat this epidemic.”

The indictments allege that John Wade, 45, Jerome Gray, 33, and Rasheena Jones, 20, each distributed drugs containing a mix of heroin and fentanyl that resulted in the overdose deaths of its users.

Wade is charged with one count of distribution resulting in an overdose death, two counts of distributing heroin and one count of possession of a firearm in furtherance of a drug trafficking offense. Gray is charged with one count of distribution resulting in an overdose death and two counts of distributing heroin. Jones is charged with one count of distribution resulting in an overdose death and one count of distributing heroin.

Also charged with allegedly distributing heroin is: Shana Gadomski, 30, and Erik Grider, 26, who were each charged with one count of distributing a controlled substance containing heroin. Both Gadomski and Grider have pleaded guilty to the charge, and Gadomski has been sentenced to 18 months in prison.

Jason Stover, 30, was charged and pleaded guilty to maintaining a property for the purpose of distributing a controlled substance. He faces a potential maximum sentence of 20 years in prison.

Distribution of a controlled substance containing heroin carries a potential maximum sentence of 20 years in prison. If that distribution results in death it can be punishable by up to life in prison.

Acting U.S. Attorney Glassman commended the investigation of this case by the Hamilton County Heroin Coalition, and Assistant United States Attorney Timothy D. Oakley, who is prosecuting the cases.

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

DAYTON – William Foreman, 71, of Kettering, Ohio was sentenced in U.S. District Court to 60 months in prison for possessing child pornography.

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

According to court documents, the case stemmed from a child exploitation investigation in the United Kingdom that included emails with a subject named “Bill.” In the communication, “Bill” – later identified as Foreman – discussed his attraction to young children and his access to them through his business. Investigators discovered Foreman had been certified/licensed to teach in the state of Ohio since 1975. Specifically, the records indicated he was certified to teach handicapped children in grades Kindergarten through 12th grade and all students in grades Kindergarten through 8th grade.

It was discovered that Foreman’s username was associated with several websites that contained stories of child erotica, including more than 70 stories authored by Foreman and posted as early as 1998.

While visiting Foreman’s home, the defendant told investigators he was a teacher with Dayton Public Schools and currently tutored special needs students at hospitals or in their homes.

Upon executing forensic analysis of Foreman’s computer and memory cards, investigators discovered multiple pornographic pictures and videos of young girls approximately seven to 11 years old.

“Possession of child pornography is a real crime that harms real children,” Acting U.S. Attorney Glassman said. “The facts of this case are all the more egregious because they involve a school teacher spending his private time watching the rape of school-aged children.”

“The facts of this case are particularly troubling given the defendant’s career choice and ready access to children,” said Miller. "Cases like these only heighten our resolve to seek out predators, especially those in positions of trust, to ensure they are held accountable."

Foreman pleaded guilty on November 30, 2015 to one count of possession of child pornography.

Acting U.S. Attorney Glassman commended the cooperative investigation by HSI, as well as Assistant United States Attorney Sheila G. Lafferty, who is representing the United States in this case. 

CINCINNATI – A federal grand jury has charged Jory Leedy, 46, of Franklin, Ohio with two counts of aggravated sexual abuse involving a minor in an indictment returned in Cincinnati.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Hamilton County Sheriff Jim Neil and other members of the Regional Electronics and Computer Investigations (RECI) Task Force announced the indictment returned today.

The indictment alleges that Leedy sexually abused two minor boys as young as seven and eight years old. He allegedly met the victims through his volunteer work as a bus driver for Target Ministries of Dayton, who provided transportation and assistance in poorer neighborhoods in the Dayton area.

Eventually, Leedy allegedly ingratiated himself into the family and began visiting the victims’ home, taking them to church in Cincinnati and on trips to the zoo, Cincinnati Reds games and Kings Island. He began taking the boys on vacations out of state.

Leedy had allegedly provided the family with a fake name. His true identity was discovered during an altercation with the victims’ father in which the police were called. Police advised the parents of Leedy’s true identity and that he was a registered sex offender.

It is alleged that the defendant sexually abused the victims consistently for more than two years and that he threatened the victims that if they told anyone what happened he would not able to take them fun places anymore or buy games and clothes for them.

Aggravated sexual abuse involving a person less than 12 years of age carries a potential maximum sentence of up to life in prison.

Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Hamilton County Sheriff’s Office, as well as Assistant United States Attorney Christy L. Muncy, who is prosecuting the case.

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

CINCINNATI – Acting U.S. Attorney Benjamin C. Glassman met this morning with members of the board of directors of the Islamic Center of Greater Cincinnati. The gathering is part of a continued effort to foster understanding and safety for Muslim American communities within the Southern District of Ohio.

Today’s meeting was one of 14 events in 11 federal judicial districts across the United States. The series of events around the country are addressing backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, Calif. The events are also designed to build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.

From April 12 through May 6, U.S. Attorneys in California, Colorado, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.

“Divisive rhetoric and religious intolerance directed toward Muslim Americans are wrong,” Acting U.S. Attorney Glassman said. “Just like every religious group, Muslim Americans should not be blamed for the criminal actions of a few individuals. Places like the Islamic Center of Greater Cincinnati serve our community by building bridges of understanding with other faith communities, providing education for young people, and enriching worship for many of our neighbors.”

“It was extremely important to have Mr. Glassman visit the Islamic Center of Greater Cincinnati today, as a positive relationship with law enforcement is a priority for the Center,” said Shakila T. Ahmad, President of the Board of Directors of the Islamic Center of Greater Cincinnati. “The hate rhetoric and rise in discrimination towards Muslim Americans is at such a high level that collaboration between the Muslim American community, the greater community and law enforcement is imperative for all Americans and our founding American values.”

Since Sept. 11, 2001, the Department of Justice has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and the U.S. Attorney’s Offices throughout the country have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.

The Civil Rights Division is leading the interagency initiative to combat religious discrimination, which includes combatting illegal restrictions on religious properties like mosques.

COLUMBUS, Ohio – Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, today announced the following appointments to his executive and supervisory staff. The appointments were effective last week.

“I am grateful to work with the finest management team any U.S. Attorney’s Office could have,” Glassman said. “They are experienced and dedicated and share a focus in pursuing justice.”

Vipal J. Patel was named First Assistant U.S. Attorney. This position is the number two position in the U.S. Attorney's Office and is responsible for overseeing the day-to-day operations of the office. Patel has been an Assistant U.S. Attorney since 2000, first in the Central District of California in Los Angeles, and since 2005, in the Southern District of Ohio in Dayton. Patel served as the district Criminal Chief in 2010. Prior to that, he served as Deputy Criminal Chief in the Dayton office since 2006. He spent his 2011 on a one-year detail to Afghanistan, where he served as an advisor to the Afghan Ministry of Justice and other governmental and educational institutions, as part of the U.S. Department of Justice’s Rule of Law program. Patel received an undergraduate degree from Kent State University in 1988, and his law degree from George Washington University Law School in 1991. Prior to becoming a federal prosecutor, Patel was a litigation associate and then partner with the law firm of Hancock Rothert & Bunshoft LLP (currently, Duane Morris LLP), in Los Angeles. Patel also serves as an Adjunct Professor at the University of Dayton Law School, where he has taught International Law and teaches courses in Cybercrime and Criminal Procedure-Adjudication. He is a Board Member (Secretary) of the Dayton Chapter of the Federal Bar Association and a former Board Member for the Boonshoft Museum of Discovery in Dayton.

Mark D'Alessandro will continue as Executive Assistant U.S. Attorney and District Civil Chief. The Executive Assistant is primarily responsible for personnel and facilities issues, Department of Justice reporting requirements, special projects, and other responsibilities. D’Alessandro served as the First Assistant U.S. Attorney from 2010 to January 2016. He has been Civil Chief since 2009 and was Deputy Civil Chief - Columbus from 2001-2009. Before that, he served as a criminal Assistant U.S. Attorney for Health Care Fraud from 1997 until 2001, and was the Affirmative Civil Enforcement (ACE) Assistant U.S. Attorney from 1995 until 1997. D'Alessandro is a 1975 graduate of Boston College and a 1979 graduate of the Capital University Law School. He also served as an Assistant Attorney General for the State of Ohio from 1979 until 1995.

D’Alessandro will be assisted in his Civil Chief duties by Matthew Horwitz, who will continue to serve as Deputy Civil Chief. Horwitz was first named to the post in 2014. He has been an Assistant U.S. Attorney in Cincinnati since 2012. Horwitz graduated from the Ohio State University and received his J.D., with honors, from the Ohio State University Moritz College of Law. He previously practiced at Frost Brown Todd in Cincinnati. 

Kenneth L. Parker will continue as District Criminal Chief, a post he has held since 2011. Parker began serving as an Assistant U.S. Attorney in the Cincinnati Criminal Division in 1999. He has also served as the District’s OCDETF Chief. He graduated from Tuskegee University in 1994 and earned his law degree from Indiana University in 1997. Parker has served as president of the Cincinnati-Northern Kentucky Chapter of the Federal Bar Association, and of the Black Lawyers Association of Cincinnati.

Parker will be assisted in his Criminal Chief duties by five Deputy Criminal Chiefs. They are:

• Gary L. Spartis, Deputy Criminal Chief - Columbus. Spartis has served as a Deputy Criminal Chief in the Columbus office since 2001. Prior to that, he served as an Assistant U.S. Attorney beginning in 1987. Spartis graduated from Grove City College (PA) in 1976 and the Capital University Law School in 1979. He served as an Assistant Franklin County Prosecutor from 1981 until 1987.

• Brenda S. Shoemaker, Deputy Criminal Chief – Columbus. Shoemaker has served as a Deputy Criminal Chief in the Columbus office since 2009. Shoemaker has served as an Assistant U.S. Attorney, Columbus Criminal Division, since 1997 and as an Assistant U.S. Attorney in the Dayton Criminal Division from 1995 until 1997. She is a 1977 graduate of the University of Cincinnati and earned her law degree in 1988 from Capital University.

• Emily N. Glatfelter, Deputy Criminal Chief – Cincinnati. Glatfelter has served as a Deputy Criminal Chief in the Cincinnati office since 2015. She joined the U.S. Attorney’s Office in Cincinnati in 2012, primarily handling financial crimes matters. She previously served in the Criminal Division of the U.S. Attorney’s Office District of Maryland, beginning in 2006. She earned her bachelor’s degree from Butler University in 1999 and her law degree from the University of Indiana in 2002 before working for Arnold & Porter LLP in Washington D.C. She also clerked for the Hon. David F. Hamilton while he served as U.S. District Judge for the Southern District of Indiana.

• Laura I. Clemmens, Deputy Criminal Chief – Dayton. Clemmens has served as a Deputy Criminal Chief in the Dayton office since 2009. She began her service as an Assistant U.S. Attorney, Dayton Criminal Division, in 2002. She earned degree from The College of Wooster, the University of Southern Californiaer law degree from the University of. Prior to earning her law degree, Clemmens worked as a scientist at the Denver regional office of the U.S. Environmental Protection Agency.

• Mike Hunter, Deputy Criminal Chief – Organized Crime & Drug Enforcement Task Force. Hunter has served as a Deputy Criminal Chief since 2015 and oversees the District’s Organized Crime & Drug Enforcement Task Force (OCDETF). Hunter has been an Assistant U.S. Attorney since 2006, first in the U.S. Attorney’s Offices for District of Columbia and later in the Southern District of Ohio in Columbus. Hunter is a former law clerk for the Hon. John R. Fisher of the District of Columbia Court of Appeals, an eight year veteran of the United States Air Force, a 1998 graduate of the Ohio State University, and a 2003 graduate of the Cleveland-Marshall College of Law.

   

Douglas Squires will continue as Senior Litigation Counsel. Squires has served as the District’s Senior Litigation Counsel (“SLC”) since 2014. As the SLC, Squires is responsible for legal training and development. For the past 15 years, Squires has been an Assistant U.S. Attorney in Columbus prosecuting white collar crime, corruption and now terrorism offenses. In 2009, he received the U.S. Department of Justice Distinguished Service Award. From 1994 to 2000, Squires was a state prosecutor in California. He is also an Adjunct Professor at the Ohio State University Moritz College of Law where he teaches white collar crime. He has authored several published materials on white-collar crime and fraud, including a chapter entitled "Forensic Accounting" in Scientific Evidence in Civil and Criminal Cases, 6th Ed., 2013, Foundation Press, a legal textbook on scientific and technical evidence. Squires received a B.A. from Miami University, Oxford, Ohio and his law degree from the University of San Francisco School of Law.

Mary Beth Young was appointed as Appellate Chief, with supervisory responsibility for criminal and civil filings in the Court of Appeals and coordination of the District’s appellate practice with other divisions of the Department of Justice. Young became an Assistant United States Attorney in 2012 in Columbus after serving two years as a Special AUSA. Prior to joining the District, Young was in private practice in Columbus and served as a Visiting Assistant Professor at the Moritz College of Law. Young received her B.S. from the University of Kentucky, her M.S. from Georgia Tech, and her J.D. from the University of Chicago. Following law school, Young served as law clerk to Judge David Sentelle of the United States Court of Appeals for the D.C. Circuit, then to Justice Antonin Scalia of the United States Supreme Court.

COLUMBUS, Ohio – A federal grand jury has charged Dennis K. Rawlins, 67, of Jackson, Ohio and Mark R. Heyd, 61, of Kailua, Hawaii with conspiring to produce, producing, distributing and possessing child pornography. Rawlins and Heyd were both also registered sex offenders as a result of prior convictions.

Benjamin C. Glassman, Acting 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 Westerville Police Chief Joseph Morbitzer announced the superseding indictment returned yesterday.

The superseding indictment alleges that beginning in the summer of 2015 and continuing through January of this year, the defendants induced a 15-year-old male to engage in sexually explicit conduct for the purposes of producing child pornography. Heyd allegedly sent Rawlins money through PayPal to take the victim on shopping trips, to movies and to various hotels in the Columbus, Ohio area. Rawlins engaged in sex acts with the victim in the hotels, and video of the sexual conduct was sent to Heyd via computer webcams and online chat services like Skype. Photographs were also taken on cell phones and exchanged via Kik messenger.

Given their prior convictions, Rawlins and Heyd face an enhanced mandatory life sentence for conspiracy to produce and production of child pornography. Rawlins faces 15 to 40 years in prison for distribution of child pornography and 10 to 20 years of incarceration for possession of child pornography. Committing a sex offense while registered as a sex offender adds a 10-year mandatory consecutive term of incarceration.

Heyd was arrested in Hawaii on March 16 and both men remain in custody.

Acting U.S. Attorney Glassman commended the investigation of this case by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill and Special Assistant Jennifer M. Rausch, Director of the Special Victims Unit for Franklin County Prosecutor Ron O’Brien’s Office, who are prosecuting the case.

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

DAYTON – Michael J. Wion, 44, of Venice, Florida, and Tess Cremeens, 47,  of Troy, Ohio, were sentenced in U.S. District Court for their roles in embezzling more than $725,000 from their former employer.

Wion was sentenced to 48 months in prison and was ordered to pay $733,640 in restitution to Repacorp, Inc. and $140,794 to the IRS. Cremeens was sentenced to 18 months in prison and ordered to pay approximately $250,000 to Repacorp and $70,000 to the IRS.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentences handed down today by U.S. District Judge Thomas M. Rose.

According to court documents, from approximately 2006 until May 2012, Wion was the controller for Repacorp, a privately owned manufacturing company headquartered in Tipp City, Ohio. As controller, he occupied a management-level position and was in charge of accounts payable/receivable and payroll, as well as other accounting and financial operations.

Wion devised a scheme to embezzle money from the company through PayPal accounts for approximately five years, by setting up multiple accounts to facilitate and conceal his movement of funds from Repacorp’s PayPal accounts to his own accounts. During that time he made approximately 300 electronic transfers.

Wion and Cremeens both devised a scheme to steal money from the company’s payroll, as well. For nearly three years, the pair booked additional payments in QuickBooks as automotive allowances being paid to former employees who were no longer with the company but who appeared in the system as active names. In total, they transferred money from payroll to their own bank accounts more than 100 times.

In addition to embezzling hundreds of thousands of dollars from their former employee, Wion and Cremeens also evaded thousands of dollars in federal taxes. Between 2008 and 2012, Wion admitted to failing to pay approximately $140,000 in federal taxes. Cremeens failed to pay more than $70,000 in federal taxes between 2010 and 2012.

"As we approach the end of tax filing season, those who might consider committing income tax fraud should be aware of the extremely negative consequences as evidenced today," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  "Today's sentencing of Mr. Wion and Ms. Cremeens again emphasizes that the IRS and U.S. Attorney's office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."

Wion pleaded guilty on December 4, 2015 to one count of wire fraud, one count of conspiracy to commit wire fraud and one count of tax evasion. Cremeens pleaded guilty on December 11, 2015 to one count of conspiracy to commit wire fraud and one count of tax evasion.

Acting U.S. Attorney Glassman commended the cooperative investigation by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorney Alex R. Sistla, who is representing the United States in this case. 

CINCINNATI – Four defendants have pleaded guilty in U.S. District Court to charges related to an identity theft ring operated with Puerto Rican birth certificates and Social Security cards.

Oris Mercedes Baez Ramirez, 50, of Hamilton, Ramon E. Fuentes Morillo, 50, of Puerto Rico, and Cipriano Diaz, 39, of Cincinnati, and Chilango Zuniga, 40, of Hamilton, all pleaded guilty to charges related mail and wire fraud and aggravated identity theft.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Division, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS), Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations (HSI), and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the pleas entered into before U.S. District Susan J. Dlott.

According to court documents, beginning at least as early as April 2014 and continuing until July 2015, the defendants conspired to enrich themselves by trafficking in Puerto Rican birth certificates and Social Security cards. Some document sets were issued to real people and some were illegally manufactured using the names and information of real people.

The defendants tried to avoid detection by using fake names on the document packages they sent via Priority or Express Mail to various addresses. They wired money to and from Puerto Rico in order to purchase more documents to then sell at a profit.

Ramirez pleaded guilty on January 20 to one count of conspiracy to commit mail and wire fraud and four counts of aggravated identity theft.

Morillo pleaded guilty on February 23 to one count of conspiracy to commit mail and wire fraud, four counts of aggravated identity theft and one count of money laundering.

Diaz pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud, two counts of aggravated identity theft and one count of money laundering.

Zuniga also pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud.

Conspiracy to commit mail and wire fraud and money laundering are crimes punishable by up to 20 years in prison. Each count of aggravated identity theft carries a mandatory two year addition to sentences for the underlying felony offense.

Nine individuals were indicted in total in this case. The other co-defendants include:

Jorge Roblero, 35, of Cincinnati

Kathya Roblero, 50, of Cincinnati

Esmeralda Hernandez Cervantes, 36, of Cincinnati

Susana Angiolina Urena, 45, of Hamilton

Fernano Evelio Velasquez-Morales, 32, of Cincinnati

Acting U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Assistant United States Attorney Jessica W. Knight and Cincinnati Branch Chief Emily N. Glatfelter, who are representing the United States in this case.

COLUMBUS, Ohio – A former fugitive pleaded guilty in connection to a racketeering case involving the organized criminal enterprise known as the Short North Posse.

Andre M. Brown, 33, of Columbus, pleaded guilty to one count of racketeering conspiracy, one count of marijuana possession and one count of use of a firearm during and in relation to a drug trafficking crime.

Brown was arrested by FBI agents in Charlotte, N.C. in June 2015. Brown had been a fugitive since October 2014 when he was charged in a superseding indictment related to his role in the gang.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Donald J. Sorrano, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the plea entered into today before U.S. District Judge Algenon L. Marbley.

Twenty individuals total were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons trafficking, extortion and robbery.

Racketeering conspiracy is a crime punishable by up to 20 years in prison. Marijuana possession carries a potential maximum sentence of five years in prison. Using a firearm in furtherance of drug trafficking is a crime punishable by seven years up to life in prison to be served consecutively to other sentences.

Acting U.S. Attorney Glassman commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez, and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.

Trial is scheduled to begin on April 4 for five of the individuals in this case. A second trial is currently scheduled for July 11 and a third trial is currently scheduled to begin on September 26.

WASHINGTON – Today, the Department of Justice announced that the Southern District of Ohio will serve as one of 10 regional Elder Justice Task Forces.  These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.

“We’re honored to be selected as one of the regional task forces,” Acting U.S. Attorney Benjamin C. Glassman said. “Our designation highlights the great, collaborative work already underway here with local, state, and federal partners, and our District’s commitment to protecting our most vulnerable citizens.”

The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services (HHS), state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.

The 10 Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.

“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”

The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative.  The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues.  It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries.  The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces.  Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.

COLUMBUS, Ohio – Steven R. Trent, 46, of Columbus, was sentenced in U.S. District Court to 240 months in prison for using a minor female under the age of 2 years to engage in sexually explicit conduct for the purpose of producing child pornography.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Gregory L. Frost.

According to court documents, Trent took photographs of the genitalia of a 14-month-old female and his own genitalia on or attempting to penetrate the victim.

Trent pleaded guilty on December 15, 2015 to one count of production of child pornography. He was also sentenced to 20 years of supervised release and ordered to register as a sex offender.

“The nature and circumstances of the defendant’s offense are nothing short of horrendous,” Acting U.S. Attorney Glassman said.

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

COLUMBUS, Ohio – David H. DeMathews, 63, of Columbus, pleaded guilty in U.S. District Court to one count of wire fraud and one count of money laundering.

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

DeMathews used his positions as Director of National Accounts and Executive Vice President of American Escrow and Title Services, Inc. (AETS), and President of DEMCO Advisory Corporation (DEMCO) to execute a financial fraud scheme.

DeMathews told some victims he would invest their money in the construction of multi-million dollar buildings that were supposed to generate repayment to the investors. He promised some victims he would invest their money in Starbucks franchise opportunities in Central America, hospital projects in Panama and Nicaragua, and a water treatment plant in Florida.  He also used some victims’ investments to make partial repayments to other victims, in order to convince those victims that AETS and DEMCO were generating income, and to encourage those victims to make additional investments in AETS and DEMCO.

From 2009 through April 2014, DeMathews had no legitimate income of any kind. He received approximately $911,000 for the purpose of executing his scheme, and misappropriated those funds for primarily his personal use. Those personal expenditures included, but were not limited to: mortgage payments on two houses, numerous lavish big game hunting trips and other vacations to Europe and South Africa, expensive retail purchases, and effectively all of the defendant’s daily living expenses.

DeMathews also used the investors’ money to satisfy monthly restitution payment obligations ordered in the amount of approximately $3.7 million related to a federal criminal case in the Central District of California, in which he was convicted of multiple counts of loan and credit application fraud in April 2000.

He was indicted by a federal grand jury in March 2015.

Wire fraud is a crime punishable by up to 20 years in prison and money laundering in this case carries a potential maximum sentence of 10 years.

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

COLUMBUS, Ohio – Danny R. Williams, 29, and Sukita M. Williams, 43, both of Las Vegas, pleaded guilty in U.S. District Court to conspiracy to possess with intent to distribute Oxycodone and money laundering.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, David A. Grant, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.

According to court documents, since November 2012, the pair has been conspiring to import, possess and distribute Oxycodone from Las Vegas. They each personally went to physicians to obtain fraudulent prescriptions and either arranged for others to do the same or used middlemen to obtain Oxycodone. Once they obtained bulk amounts of Oxycodone, the pills were transported to Columbus, Ohio via the mail or on commercial airlines to be sold on the street to drug users.

The couple attempted to conceal their illicit proceeds by depositing money into others’ bank accounts.

Danny and Sukita Williams each pleaded guilty to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Each crime is punishable by up to 20 years in prison.

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

COLUMBUS, Ohio – Melissa Daley, 45, of Nashport, Ohio was sentenced in U.S. District Court to 12 months and one day in prison and ordered to pay approximately $103,000 in restitution and a $25,000 fine for filing a false income tax return with the Internal Revenue Service (IRS), wire fraud and money laundering.

Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, 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 and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Gregory L. Frost.

According to court documents, since 1992 Daley acted as the Executive Director for the Center for Child and Family Development (CCFD) in Zanesville, Ohio. CCFD, a non-profit organization, provided foster care and residential case services to children as well as adult care services.

In June 2009, on behalf of CCFD, Daley applied to the Ohio Department of Developmental Disabilities (DODD) to allow for CCFD to be a part of the Individual Options Waiver Program (I/O Waiver Program).  This program allowed for continued care of adult individuals with mental or developmental disabilities and permitted qualified individuals to remain in their homes and obtain support for their disabilities rather than requiring them to live in an Intermediate Care Facility for the Mentally Retarded.  The application was approved by DODD.

Between March 2011 and November 2012 Daley devised a scheme to defraud CCFD, by diverting payments for the waiver program to a personal checking account for Daley. As a result of this fraudulent scheme, Daley received $71,977.31 of CCFD’s I/O Waiver funds that were deposited into her personal checking.

In addition, in August 2011, after having resigned from CCFD, Daley opened a new bank account in the name of CCFD and claimed she was the President of the organization. After opening the account, Daley again caused waiver program funds to be deposited into her bank account.  Once Daley received CCFD’s I/O Waiver funds she would immediately transfer the funds into another bank account in the name of Community Base Services, which was a newly formed entity created by Daley. As a result of this fraudulent scheme, Daley received an additional $296,115.00 of CCFD’s I/O Waiver funds into her personal bank account.

Daley did not report any of the funds she fraudulently obtained on her 2011 or 2012 income tax returns. The total unreported income on Daley’s 2011 and 2012 income tax returns was $360,182.37 resulting in additional taxes due and owing to the IRS in the amount of $103,043.07.

Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI, IRS, and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.

COLUMBUS, Ohio – Mark W. Wolfe, 50, of Sunbury, Ohio, pleaded guilty in U.S. District Court to distribution of child pornography.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Westerville Police Chief Joseph Morbitzer announced the plea entered into today before U.S. Magistrate Judge Terence P. Kemp.

According to court documents, undercover investigators observed files containing child pornography being shared through an IP address belonging to Wolfe. During a search warrant executed on July 31 at Wolfe’s residence, investigators discovered a laptop containing approximately 486 videos and 203 images of child pornography. The files were located in several folders on the computer under the user name “Mark.”  Some of the videos showed children as young as eight-to-10 months old being sexually abused.

Further forensic analysis of the computer revealed Skype chat messages between Wolfe and several other individuals. In these conversations, Wolfe allegedly distributed child pornography files and claimed to have previously engaged in sex acts with minors and stated that his favorite age is five to ten years old.

Wolfe was charged by indictment in September 2015. He pleaded guilty to one count of distribution of child pornography, which is punishable by at least five years and up to 20 years in prison.

This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

Stewart commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill, who is prosecuting the case.

DAYTON, Ohio – Ricky Lasley, 37, of Dayton, was sentenced in U.S. District Court to 52 months in prison for being a felon in possession of a firearm.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Dayton Police Chief Richard Biehl announced the sentence handed down today by U.S. District Judge Walter H. Rice.

According to court documents, investigators executed search warrants at Lasley’s home and business and discovered three firearms that had previously been stolen from gun shops in the area. A 9mm handgun seized had been stolen from the Miami Armory and the two other firearms had been stolen from Vandalia Range and Armory. Lasley admitted that he obtained the firearms from other individuals.

Lasley pleaded guilty on December 9, 2015 to one count of possession of a firearm by a convicted felon.

“This case accounts for three of the firearms previously stolen from area gun shops, and should send the message that we will continue to go after burglars and those illegally purchasing firearms,” U.S. Attorney Stewart said.

U.S. Attorney Stewart commended the cooperative investigation by ATF, FBI, Dayton Police Department and other members of the Community Initiative to Reduce Gun Violence and the Southern Ohio Safe Streets Task Force, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case. 

COLUMBUS, Ohio – Douglas E. Cowgill, 60, of Westerville, Ohio, was sentenced today in U.S. District Court to 48 months in prison, three years of supervised release and ordered to pay approximately $841,000 in restitution for wire fraud, theft or embezzlement from employee benefit plans, and perjury.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, James Vanderberg, Special Agent in Charge, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Joseph Rivers, Cincinnati Office Director of the U.S. Department of Labor - Employee Benefits Security Administration, announced the sentence handed down today by U.S. District Judge Michael H. Watson.

From July 2013 through August 2014, Cowgill was president and sole owner of Professional Investment Management (PIM), Inc. in Columbus, where he had been employed since July 1981.Cowgill used his positions at PIM to defraud investors and use their funds for his own use. From March 2008 through October 2013, he misappropriated approximately $840,575. He manually altered account balances in company software and wired the misappropriated funds to an account for his own use. Cowgill paid various personal obligations with the money, depositing the money into his bank accounts, bank accounts of his wife, and bank accounts of the Northwest Swim Club, a non-profit swim club in Columbus for which he served as the treasurer.

PIM had the funds of approximately 300 individual clients under management, and Cowgill’s fraudulent scheme harmed at least 125 victims.

Most of the victims had their money in one of approximately 15 retirement plans. Each of the retirement plans was a qualified employee pension benefit plan under the Employee Retirement Income Security Act of 1974, and Cowgill pleaded guilty to theft or embezzlement from employee benefit plans.

On January 23, 2014, Cowgill lied under oath before officers of the Securities and Exchange Commission (SEC) while the SEC was conducting an investigation to determine whether there had been violations of federal securities laws in connection with PIM.

In January 2014, in Columbus, Ohio, Cowgill gave a deposition in connection with the SEC’s investigation. As part of the deposition, Cowgill took an oath that he would testify truthfully and that all materials prepared by him in anticipation of his testimony were accurate and complete.

In connection with the deposition, Cowgill prepared responses to a background questionnaire that, in part, asked him to list all accounts in his name, in which he had any beneficial interest, or over which he had any control. In response, Cowgill failed to disclose his control of over five bank accounts associated with the Northwest Swim Club for which he was an authorized signatory. During his sworn deposition, Cowgill affirmed that his answers to the questionnaire were accurate, and again failed to disclose the five Northwest Swim Club accounts to the officers of the SEC. At the time of the deposition, Cowgill knew that the Northwest Swim Club had been a recipient of a substantial portion of the funds misappropriated by him. In doing so, Cowgill attempted to conceal his misappropriation of client funds from investigators.

Cowgill pleaded guilty to wire fraud, theft or embezzlement from employee benefit plans, and perjury in November 2015.

U.S. Attorney Stewart commended the cooperative investigation by the FBI and the U.S. Department of Labor - Office of the Inspector General and U.S. Department of Labor - Employee Benefits Security Administration, as well as Assistant United States Attorney Peter Glenn-Applegate, who is representing the United States in this case. U.S. Attorney Stewart also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.

CINCINNATI – A United States District Court jury convicted David Guy, 61, of New Richmond, Ohio of 11 counts of obscene visual representations of the sexual abuse of children, one count of attempted production of child pornography, three counts of receipt of child pornography and one count of possession of child pornography.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Clermont County Sheriff Tim Rodenberg and other members of the Regional Electronic Computer Investigations Task Force including Hamilton County Sheriff Jim Neil and Cincinnati Police Chief Eliot Isaac, announced the verdict reached Friday, which was returned following a trial that began on February 29 before U.S. District Judge Susan J. Dlott.

Guy used Photoshop to create hundreds of visual depictions using 11 different minor victims by placing the children’s faces into images of very graphic adult and child pornography. In addition, Guy attempted to produce child pornography when he took a photo of one minor, posing the child on her hands and knees and exposing her bottom. 

A search of computers seized from Guy’s residence revealed the extent of his child pornography collection. Guy’s images included depictions of the sexual bondage of children less than five years of age, bestiality, lascivious exhibition, among many other graphic and violent images. 

According to court testimony, Guy claimed that the over 25,000 images of child pornography he received and possessed were inspiration for his art. He claimed, through counsel, that the hundreds of images of graphic child pornography he Photoshopped were merely art.

Guy also claimed that the government was to blame for attempting to sensor his work, which was rebutted by Assistant U.S. Attorney Timothy D. Oakley during rebuttal.

“May we never live in a society where the vile images you have seen during the course of this trial becomes the ‘community standard,’” Assistant U.S. Attorney Christy L. Muncy told the jury during closing argument. 

The jury convicted Guy with the 16 counts he was charged with after less than an hour of deliberation.

Obscene visual representations of the sexual abuse of children is a crime punishable by not less than five years and up to 20 years in prison. Production of child pornography carries a sentence ranging from 15 to 30 years in prison. Receipt of child pornography carries a sentencing range from 5 to 20 years and possession of child pornography is punishable by up to 20 years in prison.

Stewart commended the cooperative investigation by agents and officers of the Clermont County Sheriff’s Office, the Regional Electronic Computer Investigations Task Force, which is comprised of officers from the Hamilton County Sheriff’s Office and the Cincinnati Police Department, as well as Assistant U.S. Attorneys Christy L. Muncy and Timothy D. Oakley, who prosecuted the case.

COLUMBUS, Ohio – A fourth defendant has pleaded guilty in the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio.

Toby Lee Thacker, 55, of Wellston, Ohio, pleaded guilty in U.S District Court today to violating the Act by engaging in the excavation and sale of the human remains of a Native American.

David E. Skeens, 39, and Brian K. Skeens, 38, both of Wellston, Ohio, each pleaded guilty in December 2015 to engaging in the excavation and sale of the Native American bones.

Mark M. Beatty, 56, of Wellston, Ohio, pleaded guilty in August 2015 to purchasing the remains.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Jackson County Sheriff Tedd Frazier and Rick Perkins, Chief Ranger, National Park Service at Hopewell Culture National Historical Park, announced the plea entered into today before U.S. District Magistrate Judge Terence P. Kemp.

According to court documents, David and Brian Skeens and Thacker were observed digging in a rock shelter in Salt Creek Valley in Jackson County, Ohio. When they were approached, they ran off into the woods and left behind shovels, dirt sifters, buckets and trash. Investigators confirmed that they had unburied human remains. Beatty admitted to purchasing those remains.

An anthropologist confirmed that the human remains were consistent with Native Americans, specifically identifiable by cradle boarding, a cultural activity used only by Native American Indians in North America. The identity of the remains was also confirmed by an archeologist, who verified that rockshelters were used extensively for burials in Southern Ohio and specifically in Jackson County.

DNA testing concluded a direct connection to present day Native American Indians living in the United States today.

The remains will be transferred to the federally recognized tribes who have assisted with this case, and re-buried in Ohio at an undisclosed location and in private once all the court proceedings are completed.

U.S. Attorney Stewart commended the investigation by the Jackson County Sheriff’s Office and FBI and the participation from an archeologist from Wayne National Forest and researchers from Ohio University, The Ohio State University and Washington State University, as well as Assistant United States Attorneys J. Michael Marous and Brian Martinez, who are representing the United States in this case. 

COLUMBUS, Ohio – Brian M. Sze, 35, of Seattle, pleaded guilty in U.S. District Court to production of child pornography.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before U.S. District Judge Algenon L. Marbley.

According to court documents, the investigation began in July 2015 after a tip was reported to ICAC, which indicated that Sze had engaged in sexually suggestive communications with a minor.  The investigation revealed that Sze had also engaged in illicit sexual contact with a minor and caused recordings of the child engaged in sexual activity to be recorded.

Sze pleaded guilty to one count of production of child pornography, a crime punishable by a range of 15 to 30 years in prison.

“Sze’s actions are particularly heinous because he used his position as an educator to victimize a minor,” Assistant U.S. Attorney Heather A. Hill said.

"This case is particularly troubling due to the defendant's position of trust with young people," said Miller. "Some predators are under the false impression that the anonymity of cyberspace shields them from scrutiny by law enforcement. HSI remains committed to working with our law enforcement partners in the fight against those who sexually exploit children."

“The Franklin County ICAC Task Force works diligently on targeting those who prey on children,” Sheriff Zach Scott said. “We are committed to working collaboratively to bring child predators like Sze to justice. We do not and will not tolerate these crimes being committed in our community.”

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

Franklin County Sheriff’s Office

Ohio ICAC

Grove City Police Department

Columbus Police Department

Grandview Heights Police Department

Westerville Police Department

Hilliard Police Department

Franklin County Prosecutor's Office

Homeland Security Investigations (HSI)

Ohio Attorney General’s Office (BCI)

The Ohio State University Police Department

Upper Arlington Police Department

Circleville Police Department

Pickaway County Sheriff’s Office

 

This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.

U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather A. Hill, who is representing the United States in this case.

COLUMBUS, Ohio – Matthew L. Dailey, age 45, of Howard, Ohio, pleaded guilty in U.S. District Court to Hobbs Act extortion under color of official right.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Mount Vernon Police Chief Roger A. Monroe, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.

According to court documents, Dailey was employed as a Detective Sergeant with the Mount Vernon Police Department, who investigated general crimes, including narcotics crimes. In September of last year, Dailey asked an individual, who had served as an informant for Dailey for approximately seven years, to sell drugs for him.

Dailey provided the individual with marijuana, methamphetamine, bath salts, and ecstasy pills to sell and split the profits. A portion of the drugs were supplied from the Police Department’s property room, of which Dailey was the Evidence Custodian.

Investigators also observed Dailey meeting with a second individual, who sold Oxycodone pills to Dailey approximately five days a week for seven months.

Dailey was placed on administrative leave in September 2015. During an inventory of the property room thereafter, the Police Department discovered a kit used to teach drug awareness was missing crack and powder cocaine and ecstasy pills.

Dailey pleaded guilty on December 21, 2015. He also agreed to pay restitution to the Mount Vernon Police Department, forfeit weapons, and a ban on future employment in any law enforcement capacity.

Hobbs Act extortion under color of official right is a crime punishable by up to 20 years in prison.

U.S. Attorney Stewart commended the cooperative investigation by the FBI, DEA, Ohio Bureau of Criminal Investigation (BCI), and Mount Vernon Police Department, as well as Assistant United States Attorneys Jessica H. Kim and Douglas W. Squires, who are representing the United States in this case. 

COLUMBUS, Ohio – Robert Wilson III, 27, of Columbus, Ohio, pleaded guilty to one count of racketeering conspiracy in connection with a case involving the organized criminal enterprise known as the Short North Posse.

As part of his plea, Wilson is taking responsibility for three previously unsolved murders. He is also admitting his involvement in a fourth murder to which already pled guilty in state court. The three previously unsolved murders include the death of Donathan Moon on April 16, 2007, Rodriccos Williams on November 3, 2007 and Tyrell Davis on April 25, 2008.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Donald J. Sorrano, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs, announced the guilty plea entered into today before U.S. District Judge Algenon L. Marbley.

Wilson was charged by a superseding indictment in October 2014.  A total of 20 individuals were indicted in the racketeering case, with charges that include murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery.

The parties involved have agreed to a sentencing range of 30 to 45 years in prison, which will be determined by the court at a sentencing hearing.

U.S. Attorney Stewart commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case. 

DAYTON, Ohio – Jonathan Gray, 42, of Dayton, Ohio, was sentenced in U.S. District Court to 150 months in prison for possession of child pornography after having previously been convicted of a crime of abusive sexual conduct involving a minor.

Carter M. Stewart, 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 court documents, in August 2013, while Gray was on probation, he possessed more than 1,360 images and more than 390 videos containing child pornography.

Gray pleaded guilty in May 2015 to one count of possessing child pornography after having previously been convicted of a crime of abusive sexual conduct involving a minor. He was charged by indictment in June 2014.

This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.

U.S. Attorney Stewart commended the cooperative investigation by the FBI and Montgomery County Sheriff’s Office, as well as Assistant United States Attorney Alex R. Sistla, who is representing the United States in this case. 

COLUMBUS, Ohio – United States Attorney Carter M. Stewart, 46, of Gahanna, Ohio, has announced his resignation effective midnight on March 11, 2016. After his resignation, he plans on joining a non-profit/foundation in the Columbus area.

“Not just serving as U.S. Attorney in the Southern District of Ohio, but serving under this president and these Attorneys General Holder and Lynch, has been the highest honor of my professional career,” U.S. Attorney Stewart said. “I could not be prouder to call myself a member of this U.S. Attorney’s Office. There are no more dedicated public servants than the men and women in this office who push themselves every day to pursue our core mission:  protecting and serving the citizens of the Southern District of Ohio through the ethical, vigorous, impartial enforcement of the laws of the United States.”

Entering office in 2009 during the height of the national financial crises and the collapse of the housing market, U.S. Attorney Stewart established White Collar crime with a focus on mortgage fraud as a top priority for the district, in addition to National Security and Violent Crime.  More recently, as the opioid epidemic has grown, he has increased resources for prosecuting pill mills, preventing opioid/heroin abuse and treating addiction.

Emphasizing prevention, Stewart created a robust outreach program in the District, establishing the position of Outreach Coordinator to better understand community needs. He made efforts to be a consistent and accessible resource for the community and also encouraged greater involvement in reentry efforts. Stewart prioritized building trust between community and law enforcement.

“Since 2009, U.S. Attorney Carter Stewart has served the people of the Southern District of Ohio – and all Americans – with fidelity and distinction,” said Attorney General Loretta Lynch.  “Throughout his tenure, he has brought his collaborative approach to a wide range of issues, convening important summits on civil rights, cybercrime, juvenile justice, and opioid abuse.  He helped to strengthen our global partnerships by representing the U.S. Attorneys community abroad.  And as a member of the Attorney General’s Advisory Committee, he spearheaded vital efforts to promote racial equality and to protect children throughout the United States.  In these and in many other undertakings, Carter distinguished himself through his hard work, his dedication, and his integrity.  I want to thank him for his outstanding contributions, and I wish him the best as he continues his public service career in the nonprofit sector.”

Stewart brought together a diverse group of stakeholders through the creation of the Columbus Community Engagement Council, which included community leaders who represent the city’s diversity in terms of ethnicity, race, faith and sexual orientation.

Under his leadership, the office convened education professionals, medical personnel, faith leaders, advocates and the business community to raise awareness about various issues including civil rights for new Americans, cybersecurity, child exploitation, human trafficking, the school-to-prison pipeline and violent extremism.

Stewart, a graduate of Stanford University, Columbia University and Harvard Law School, previously worked as an Assistant U.S. Attorney in San Jose, Calif., where he prosecuted a variety of cases including drug and gun crimes, environmental crimes, and the illegal distribution of steroids to professional athletes. During his tenure as U.S. Attorney, he served on the Attorney General’s Advisory Committee and chaired the Attorney General’s Child Exploitation Working Group and the Racial Disparities Working Group.

Among the cases prosecuted under Stewart:

U.S. v. William M. and Connie M. Apostelos is a pending case which charges the couple, who oversaw multiple companies in the Dayton, Ohio area, with orchestrating an alleged $70 million Ponzi scheme.

U.S. v. Keith A. Arrick, Sr. and Keith A. Arrick, Jr. is a case in which a father and son have both been sentenced for running a sex trafficking operation. Arrick Sr. was sentenced to 13 years in prison and Arrick Jr. was sentenced to 10 years in prison.

U.S. v. Mark M. Beatty is the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio. It involves a Jackson County man who has pleaded guilty to illegally purchasing Native American human remains. Beatty has not been sentenced yet.

U.S. v. Columbus Steel Castings Company, Inc. resulted in the company paying $825,000 for violating the Clean Air Act. Part of that money funded a Conservation Classroom Program in ten schools in South Columbus within the Columbus Public Schools.

U.S. v. Christopher Lee Cornell involves a 21-year-old Cincinnati-area man charged with attempting to provide material support to ISIL and other related offenses. He allegedly plotted, planned and attempted to attack the U.S. Capitol and kill government officials.

U.S. v. Shane K. Floyd et al. resulted in a jury trial at which school officials charged with a bribe and kickback scheme were found guilty of a $500,000 public corruption scheme. Four defendants were sentenced for their roles in connection with the crimes at the Arise Academy in Dayton, Ohio.  School officials solicited and accepted bribes in exchange for a lucrative, unbid consulting contract.

U.S. v. Glen Galemmo involves an investment company owner who was sentenced to 188 months in prison for operating a Ponzi scheme that defrauded investors of more than $87 million. Galemmo used the money as his personal bank, paying country club fees, taking luxurious vacations and buying real estate, clothing and jewelry.

United States ex rel. Fry v. Health Alliance of Greater Cincinnati, Inc (HAGC).—In 2010, HAGC and The Christ Hospital paid $110 million for violating the anti-kickback statute and False Claims Act by paying physicians for referring cardiac patients to The Christ Hospital.

U.S. v. Robert Ledbetter et al. (Short North Posse) is the largest federal murder indictment in Ohio’s history. The racketeering case involves 20 defendants and 13 previously unsolved murders. A trial is set for April 2016.

U.S. v. Charles M. McBeath and Antonio J. Spiva includes charges against two Dayton, Ohio men for distributing heroin and fentanyl that resulted in overdose deaths. Distribution resulting in death is a crime that is punishable by a mandatory minimum of 20 years up to lifetime imprisonment.

U.S. v. Abdirahman Mohamud involves a 23-year-old Columbus, Ohio resident and naturalized citizen who is charged with providing material support to terrorists (al-Nusrah). He allegedly traveled to Syria to obtain terrorist training and was instructed to return to the United States and commit an act of terrorism.

U.S. v. James O. Napier involves a Cincinnati man that was sentenced to serve 240 years in prison for producing child pornography involving an 11-month old infant and an approximately nine-year-old child.

U.S. v. Robert Frank Poandl involves a priest that was sentenced to 90 months in prison for illicit interstate transportation of a minor. A jury convicted Poandl on September 20, 2013. Testimony presented during the trial showed that, in August 1991, Poandl transported a 10-year- old boy from Cincinnati to West Virginia where he sexually assaulted the child. The crime was not disclosed until the victim came forward in 2009.

U.S. v. John P. Raphael is a pending case in which Raphael, a Columbus lobbyist, has pleaded guilty to extortion in relation to contracts with a red light photo enforcement company. Raphael repeatedly pressured and induced the company to make campaign contributions to the campaigns of various elected officials. He communicated to the company that it would lose its contracts and suffer an economic loss if it did not make the payments. Thus, Raphael obtained and attempted to obtain the funds by the wrongful use of fear of economic harm.

U.S. v. Paul H. Volkman resulted in four life sentences for a physician who was the largest physician dispenser of Oxycodone in the U.S. from 2003 to 2005 and whose illegal distribution of the pills led to the deaths of four people.

The Southern District of Ohio covers 48 counties in the state, and includes offices in the cities of Cincinnati, Columbus and Dayton. The U.S. Attorney’s Office has 52 attorneys and is responsible for conducting all criminal and civil litigation involving the United States government in Southern Ohio.

DAYTON, Ohio – A federal grand jury has charged Robert Steven Jones, 28, of Anna, Ohio, with charges related to child pornography and coercion and enticement of a minor in an indictment returned yesterday in Dayton.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the indictment returned today.

The indictment alleges that Jones knowingly coerced and enticed five minor females to engage in sexual activity for the purpose of producing or attempting to produce child pornography. Jones also allegedly received and possessed child pornography depicting female minors under the age of 12. Jones’ alleged criminal activity occurred while he was required by law to register as a sex offender.

Jones is charged with six counts of production and attempted production of child pornography involving five different alleged victims in multiple states, two counts of coercion and enticement of minor to engage in unlawful sexual activity, one count of receipt of child pornography and one count of possession of child pornography He also faces an enhanced penalty for allegedly committing certain felony offenses involving a minor while being a registered sex offender.

Jones faces at least 10 years up to life in prison for each coercion and enticement charge. Production of child pornography carries a mandatory minimum sentence of 15 years and a potential maximum sentence of 30 years in prison. Receipt and possession of child pornography are each crimes punishable by up to 20 years in prison, with the receipt charge carrying a 5 year minimum sentence. Committing a felony offense involving a minor while being required to register as a sex offender carries a mandatory 10 year sentence, to run consecutive to any other sentence.

Jones was arrested on November 4, 2015 by criminal complaint. The magistrate court ordered him detained pending trial.

U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant U.S. Attorneys Alex R. Sistla and Vipal Patel, who are prosecuting the case.

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

DAYTON, Ohio – Rebekah Riddell, 30, of Dayton, Ohio, pleaded guilty to one count of conspiracy to commit mail fraud, and Rebekah Fairchild, 53, also of Dayton, Ohio, pleaded guilty to conspiracy to commit wire fraud today in U.S. District Court. Riddell’s and Fairchild’s guilty pleas were both in connection with an alleged $70 million Ponzi scheme.                      

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service 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, U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced their guilty pleas entered into Friday before Judge Thomas M. Rose.

Riddell and Fairchild pleaded guilty in connection to the case involving William M. Apostelos, 54, and Connie M. Apostelos, 50, both formerly of Springboro, Ohio. A grand jury in the Southern District of Ohio returned a multi-count indictment against William and Connie Apostelos in October 2015. An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law. William and Connie Apostelos’ trial is currently scheduled to begin in May 2016.

The indictment alleges that 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 $30 million collectively. 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 allegedly falsely reported that he held a degree in mathematics and was a registered securities broker.

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

The couple allegedly 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.

Riddell and Fairchild were employed at Midwest Green and WMA from at least August 2009 until October 2014. In order to perpetuate the scheme, they engaged in a variety of activities, including wiring later investors’ money into earlier investors’ bank accounts and providing investors (at the direction of William and Connie Apostelos) with false and fraudulent excuses for non-payment to investors.

Riddell and Fairchild each face a potential maximum sentence of five years in prison.

U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant United States Attorneys Brent G. Tabacchi and Alex R. Sistla, who are prosecuting the case. 

COLUMBUS, Ohio – An area police detective was arrested without incident this morning on charges that he allegedly possessed with the intent to distribute controlled substances.

Tye L. Downard, 43, of Westerville, allegedly made more than 20 deliveries of narcotics between October 2015 and February 2016, including heroin, cocaine, marijuana and Percocet pills.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, John F. Oleskowicz, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General, Chicago Field Office, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ohio Attorney General Mike DeWine announced the charges.

According to court documents, Downard was employed as a detective at the Reynoldsburg Police Department throughout the investigation, which began after the FBI Public Corruption Task Force received information that Downard was using his official position to engage in illegal activity.

It is alleged that, on 21 occasions between October 2015 and February 2016, Downard delivered drugs to an individual to sell. The complaint further alleges that Downard seized blue-and-white Percocet pills during a search warrant and provided blue-and-white Percocet pills to the individual to sell two days later. Likewise, Downard was involved in the execution of a search warrant that yielded several green glass canning-style jars containing harvested marijuana buds. The next day, Downard allegedly provided the individual with four green glass canning-style jars containing harvested marijuana buds.

Possession with intent to distribute controlled substances is a crime punishable by up to 20 years in prison.

U.S. Attorney Stewart commended the FBI, Ohio Bureau of Criminal Investigation (BCI), Department of Justice OIG and DEA for their investigative work, as well as Assistant U.S. Attorneys Peter Glenn-Applegate, Salvador A. Dominguez, and Jessica W. Knight, who are prosecuting the case.

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

DAYTON – Lance Ealy, 29, of Dayton, was sentenced in U.S. District Court to 24 months in prison for failure to appear consecutive to his underlying sentence of 124 months for access device fraud, wire fraud, aggravated identity theft and related charges.

A jury in the Southern District of Ohio convicted Ealy in November 2014 of buying stolen identities online and using the identities to file more than 150 fraudulent federal income tax returns seeking refunds to which he was not entitled.

Ealy failed to appear for his jury trial on November 17, 18 and 19, 2014. He became a fugitive on November 15, 2014, after he removed his electronic monitoring device and fled while under bond conditions. He was recaptured in late March 2015 in Georgia.

He was sentenced for the underlying charges on November 21, 2015.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, United States Marshal Peter Tobin, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the latest sentence, which was handed down yesterday by U.S. District Judge Thomas M. Rose.

According to court testimony in the jury trial, between approximately January 2013 and October 2013, Ealy electronically filed at least 150 fraudulent federal income tax returns, including returns filed using the personal information of others that he had unlawfully acquired from an illicit online source. Ealy opened dozens of bank accounts at multiple financial institutions using the names and social security numbers of other individuals – without their knowledge or permission – in order to electronically deposit the fraudulent tax refunds.

The jury convicted Ealy of 46 charges, including one count of illegally possessing 15 or more unauthorized access devices, 11 counts of filing false claims for income tax refunds with the IRS, 14 counts of wire fraud, 14 counts of aggravated identity theft, one count of mail fraud, and one count of using unauthorized access devices to obtain $1,000 or more in a one-year period. An access device includes things such as payment cards and bank account numbers used to access financial accounts.

Ealy was initially charged in a federal complaint filed on October 28, 2013 following an investigation by Secret Service agents that revealed that Ealy had purchased stolen identities from an illicit online source. A federal grand jury initially indicted Ealy in November 2013, charging him with one count of knowingly possessing 15 or more access devices with intent to defraud.

U.S. Attorney Stewart commended the investigation of this case by the United States Marshals Service, Secret Service and IRS-Criminal Investigation agents, and Assistant U.S. Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.