Southern District of Ohio

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – A U.S. District Court jury convicted Jaime Ruiz-Montes, 43, of Las Vegas, Nevada for his role in a heroin trafficking organization operating in central Ohio.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Colonel Paul Pride, Superintendent of the Ohio State Highway Patrol, announced the verdict returned today following a trial that began October 30 before Senior U.S. District Judge Peter C. Economus.

Trial testimony showed that on January 7, 2013, law enforcement officers from the Drug Enforcement Administration, along with troopers of the Ohio State Highway Patrol, arrested Ruiz-Montes in Columbus after he met with Marcos Osorio, 35, of Columbus and obtained a package containing nearly two kilograms of suspected heroin from Osorio’s vehicle. 

Both Osorio and the passenger in Ruiz-Montes’ vehicle, Benjamin Uribe-Cervantes, 37, of Columbus, were also arrested.  All three men were charged with conspiracy to possess with the intent to distribute more than one kilogram of heroin along with substantive heroin trafficking charges. Osorio and Uribe-Cervantes each pleaded guilty to drug trafficking charges. 

The jury convicted Ruiz-Montes of one count of conspiracy, and one count of attempted possession with intent to distribute more than one kilogram of heroin, each crime is punishable by at least 20 years and up to life in prison.

Judge Economus will schedule a date for sentencing Ruiz-Montes and Uribe-Cervantes. Osorio is scheduled to be sentenced on January 7, 2014. All three have been in custody since their arrest.

U.S. Attorney Stewart commended the investigation conducted by the Ohio State Highway Patrol, DEA and the Franklin County Drug Task Force, and Assistant U.S. Attorney Salvador A. Dominguez and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.

CONTACT: Fred Alverson
Public Affairs Officer

DAYTON – Brian Rohrback, 29, of Xenia, Ohio was sentenced to 240 months in prison and will be under court supervision for the rest of his life for coercing teenage boys and for sharing pornographic images and videos through a file-sharing site on the internet.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Xenia Police Chief Donald R. Person announced the sentence imposed October 31 by U.S. District Judge Timothy S. Black.   

“Rohrback’s conduct involved the coercion and enticement of young men to participate in illegal sexual activities,” Assistant U.S. Attorney Christy Muncy wrote in a document filed with the court before the sentencing. “In addition, Rohrback was found to be distributing child pornography through the use of his computer. The combined total of images and/or videos of child pornography found to be in Rohrback’s possession was 4,005.”

Undercover FBI agents patrolling the internet for those possessing and sharing child pornography identified Rohrback as a user of a particular file-sharing program. Further investigation led to Rohrback’s arrest on October 24, 2012 and subsequent indictment. Rohrback pleaded guilty on February 14, 2013 to one count of coercion and enticement and one count of distribution of child pornography.

This case was 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/.

U.S. Attorney Stewart commended the investigation by FBI agents in Ohio, Florida and Texas, the Xenia Police Department, and Assistant U.S. Attorney Christy Muncy, who prosecuted the case.

CONTACT: Fred Alverson
Public Affairs Officer

DAYTON – Thuron L. Hammersley, 44, of Fairborn, Ohio was sentenced in U.S. District Court today to 78 months in federal prison for transporting an individual from Ohio to Kentucky for purposes of engaging in prostitution, in violation of the “Mann Act.”

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Miamisburg Police Chief John Sedlak announced the sentence imposed today by U.S. District Judge Timothy S. Black.

Hammersley was also sentenced to serve five years under court supervision after his release from prison. During that time, his computer use will be monitored. Hammersley was ordered to pay restitution and must register as a sex offender if required in any jurisdiction where he lives, works or goes to school.

Hammersley pleaded guilty in August to one count of transportation of an individual to engage in prostitution. He also acknowledged that he had enticed a woman to travel from Kentucky to Ohio also to engage in prostitution, and that he had obstructed the investigation into his activities.

According to court documents, Hammersley met the women on the website plentyoffish.com and placed ads for them on the internet site backpage.com offering the women as “escorts.”  He directed the men who responded to the ads to motels in Kentucky and Ohio, where they engaged in sexual activity for money.  He also enticed another woman to travel from Kentucky to the Dayton area to engage in prostitution. Hammersley enticed her by offering her employment, by paying for her bus ticket, and by paying for condoms. Hammersley collected the money paid by the men.

The case was investigated by the FBI and the Dayton and Miamisburg police departments. Assistant U.S. Attorneys Vipal Patel and Alex R. Sistla and Department of Justice Trial Attorney Betsy Biffl prosecuted the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, Ohio —A Columbus man was sentenced Thursday to 135 months  in federal prison for his role as a supplier in a large-scale drug-trafficking and money-laundering conspiracy that was targeted and dismantled by the Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force.

U.S. Attorney Carter Stewart, Ohio Attorney General Mike DeWine, William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Franklin County Sheriff Zach Scott, Columbus Police Chief Kimberley Jacobs and other members of the task force announced the sentence handed down today by U.S. District Judge Gregory L. Frost.

Levi Winston, 50, of Columbus, Ohio, pleaded guilty on May 2, 2013 to charges of conspiracy to possess and distribute more than 1,000 kilograms of marijuana and money laundering. Judge Frost sentenced Winston to 135 months on each count and ordered the sentences to run concurrently.

“Mr. Winston’s conduct is that of bringing in a literal mountain of marijuana into the Southern District of Ohio,” Assistant U.S. Attorney Michael Hunter told the court. “His admitted relevant conduct is approximately 5,000 kilos of marijuana which has an approximate street value of between four- and four point five million dollars.”

During the course of the investigation, a known drug trafficking organization transported several tons of marijuana from Mexico to central Ohio. Winston and his associates hid large quantities of the drugs inside tractor trailers and industrial machinery. On October 17, 2011, HSI special agents and task force conducted a controlled delivery of 1,798.12 pounds of marijuana to a warehouse that Winston had rented located in Gahanna, Ohio. Winston and several of his associates were later arrested on conspiracy to distribute illegal drug charges.

The HIDTA Task Force is operated as part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission. “We are pleased by the strong work coming out of this OOCIC task force to fight organized drug crimes,” said Attorney General DeWine.  “This is a clear example of successful teamwork between local, state, and federal agencies.”  

"This sentence emphasizes HSI's mission to take down major trafficking organizations in our communities," said William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio. "HSI remains committed to working with our law enforcement partners to dismantle and disrupt these criminal conspiracies."

“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. “IRS-CI is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society.”

Sheriff Zach Scott said of the investigation, “I would like to congratulate the Central Ohio HIDTA Drug Task Force and the US Attorney’s Office on a job well done. Drug traffickers prey on Central Ohio because of its ideal geographic location. This is a prime example of agencies working together to send a loud and clear message that drug trafficking will not be tolerated in Franklin County and law enforcement will be diligent in bringing those involved to justice.”

According to Columbus Police Chief Kim Jacobs, “The level of cooperation between local, county, state and federal authorities continues to play an important role in keeping the citizens of Columbus safe and in reducing the availability of illegal drugs in the Columbus area.”

In addition to the nearly 2500 pounds of marijuana seized by investigators in Columbus, the cooperation of several individuals and intelligence gathered during the investigation of this conspiracy has directly led to the seizure of an additional 3500 pounds of marijuana worth more than $3 million dollars in several other jurisdictions across the United States.

Other agencies participating in the investigation include Franklin County Prosecutor Ron O’Brien’s Office, the Ohio Bureau of Criminal Identification, the U.S. Postal Inspection Service, Gahanna Police Department, Ohio State Highway Patrol, Hilliard Division of Police, Ohio Casino Control Commission and the Ohio National Guard Counterdrug Program.

Nine other individuals have pleaded guilty to possession with the intent to distribute narcotics or conspiracy as a result of the investigation:  Didnicio Diaz-Barrera – Sentenced October 10, 2012 to 33 months in federal prison.
Adan Anaya – Sentenced June 6, 2012 to 57 months in federal prison.
Pedro Barrera-Diaz– Sentenced June 10, 2012 to 33 months in federal prison.
Alberto Hernandez – Sentenced June 6, 2012 to 12 months in federal prison.
Antonio Andriao – Sentenced May 1, 2012 to 21 months in federal prison.
Steven Johnson– Sentenced August 8, 2013 to 60 months in federal prison.
Robert Crook -- Sentenced September 20, 2013 to 12 months in federal prison.
Jose Garza --  Sentenced September 17, 2013 to 46 months in federal prison.
Marco Torres – Sentenced August 8, 2013 to 24 months in federal prison.

U.S. Attorney Stewart commended the cooperative investigation by the agencies, as well as Assistant U.S. Attorney Hunter, who prosecuted the case.

CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI – A federal grand jury has indicted Dimitar Angelov, 28 and Dimitar Kolev, 26, both of Chicago, for placing an electronic scanning receiver, known as a “skimmer”, and a hidden camera on an ATM at a Springdale, Ohio bank in order to steal account information of customers using the ATM.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service and Springdale Police Chief Michael Mathis announced the indictment today following the arraignment hearing for both men.

The one-count indictment charges them each with fraud in connection with access devices, a crime punishable by up to 15 years in prison.

According to court documents, Springdale Police officers responded to a call on September 28, 2013 that two individuals had been sitting in a car parked in a lot adjacent to a credit union ATM. The subjects were seen individually walking to the ATM and returning to the vehicle. Springdale officers later approached the men and found evidence of possible credit card fraud.  Upon further investigation, law enforcement discovered the skimming device and a pinhole camera attached to the ATM.

Springdale officers and Secret Service agents arrested Angelov and Kolev on a federal complaint. They have been in custody since their arrest. The grand jury indicted them on October 16. They entered pleas today of not guilty before U.S. Magistrate Judge Karen Litkovitz, who ordered them held without bond pending trial. U.S. District Judge Michael R. Barrett will schedule a trial.

U.S. Attorney Stewart commended the cooperative ongoing investigation by Secret Service agents and Springdale officers, as well as the prompt action of nearby business owners. Assistant U.S. Attorney Timothy Mangan is prosecuting the case.

An indictment contains allegations and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Todd Allen Lamb, 39, of Bellefontaine, Ohio pleaded guilty in U.S. District Court to selling stolen construction equipment, including selling equipment to more than one buyer.

Mark D’Alessandro, Acting U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Logan County Sheriff Andrew J. Smith announced the pleas entered today before U.S. District Judge Michael H. Watson. 

Lamb pleaded guilty to one count of unlawful interstate transportation of stolen motor vehicles, punishable by up to ten years in prison, and one count of wire fraud, which is punishable by up to 20 years in prison. Lamb was scheduled to go on trial today on the charges arising from the investigation.

According to court documents, Lamb conducted consignment sales and auctions, including sales over the Internet, of vehicles, equipment and other goods and merchandise under his companies named Almite Services and Almite Auctions.  He also sold stolen motor vehicles through the businesses, including a Caterpillar backhoe that he knew was stolen, to a purchaser in Wyoming.  

As part of Lamb’s wire fraud scheme, he sold a Mack truck to two different individuals.  After he had delivered the truck to the first buyer and was unable to deliver the truck to the second buyer, he falsely told the second buyer that the truck had been stolen from the Port of Jacksonville, Florida.  Afterward, Lamb told the second buyer he would refund the purchase price paid and sent to the buyer by an interstate facsimile message a copy of a refund check.  The check was never sent to the second buyer.

The plea agreement calls for Lamb to pay $60,000 for the court to use to pay restitution to the victims. The court could order further restitution. Judge Watson will schedule a date for sentencing.

Two others have entered guilty pleas for their role in the scheme. Lamb’s wife, Karen Henry Lamb, pleaded guilty to a misdemeanor charge of making false statements relating to transfer of a vehicle title and was sentenced to six months’ probation in October 2012. Daniel J. Huffman, an employee of Lamb’s, pleaded guilty on June 28, 2011 to one count of conspiring with Lamb to transport vehicles stolen in Missouri, Indiana, and Pennsylvania to the Almite businesses in Logan County, Ohio.  There, the manufacturers’ identification numbers would be altered for the vehicles to be sold to unsuspecting buyers.  Huffman is awaiting sentencing.

Acting U.S. Attorney D’Alessandro commended the investigation by the FBI and Logan County Sheriff’s Office who were assisted by the Ohio State Highway Patrol, the National Insurance Crime Bureau, and the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), as well as Assistant U.S. Attorneys Dale E. Williams Jr., and Deborah A. Sanders, who are prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

DAYTON – James Uphoff, 76, of Oakwood, Ohio pleaded guilty in U.S. District Court to one count of possession of child pornography following an investigation that began when employees of Wright State University found questionable material on a printer and copy machine on campus.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Wright State University Interim Police Chief David Finnie and Oakwood Police Chief Alex Bebris announced the plea entered today before U.S. District Judge Walter H. Rice.

According to court documents, in early September 2012, just prior to Uphoff’s retirement from Wright State, University Police began investigating Uphoff after the employees found the materials. Investigators also examined a university-owned computer Uphoff used, and searched Uphoff’s Oakwood residence.

Investigators seized computer media from Uphoff’s residence and had it examined at the Miami Valley Regional Computer Forensic Laboratory. Analysts found approximately 550 images and two videos of child pornography on three of the computer devices. The examination also recovered printouts depicting images of naked teenage boys and young adults in bondage and/or pornographic poses.

The plea agreement contains a sentencing range of at least six and not more than 24 months. The court will conduct an investigation and schedule a sentencing date later.

This case was 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/.

U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Christy Muncy, who prosecuted the case. 

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Charles H. Morrison III, 25, of Columbus, Ohio and James Allen Banks, 23, of Marion, Ohio have pleaded guilty in U.S. District Court to burglarizing a gun store in Hebron, Ohioand stealing 18 guns on March 20, 2013.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Hebron Police Chief D. James Dean announced the pleas entered before U.S. Magistrate Judge Elizabeth Preston Deavers. Morrison pleaded guilty today; Banks pleaded guilty Monday, September 23.

Each man pleaded guilty to one count of possession of a firearm by a convicted felon and possession of stolen firearms, crimes that are punishable by up to ten years in prison. Each man also pleaded guilty to one count of possession of three firearms with obliterated serial numbers and unlawful burglary of a licensed firearm dealer. Those two crimes are punishable by up to five years in prison.

According to court documents, Morrison and Banks went into Buckeye Outdoors in Hebron on March 20, 2013. Morrison attempted to hide in the ceiling, but left the store after an employee saw him. Morrison later broke the back glass door to gain entry to the store. ATF agents and Hebron police officers reviewed surveillance video and obtained search warrants for two residences used by Morrison and Bank’s residence. They recovered three of the firearms, ammunition, and tools that could be used to obliterate serial numbers on firearms.

ATF agents arrested both men on April 30, 2013. Both have been in custody since their arrests.

Judge Smith will set a date for sentencing following pre-sentence investigation conducted by the court.

U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorney J. Michael Marous, who is prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI – A U.S. District Court jury has convicted Robert Frank Poandl, 72, of Fairfield, Ohio of one count of interstate transportation of a minor for illicit purposes, a federal law known as the Mann Act.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), William Hayes, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan; and agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the verdict reached today following a trial that began September 16 before U.S. District Judge Michael R. Barrett.

According to trial testimony, in August 1991, Poandl transported a ten-year old boy from Cincinnati to Spencer, West Virginia where he sexually assaulted the child. The crime was not disclosed until the victim came forward in 2009. The crime is punishable by a sentence ranging from zero to ten years in prison. Judge Barrett will set a date for sentencing.

“Today’s verdict should give victims courage to come forward, even if the abuse happened years ago,” U.S. Attorney Stewart said.

A federal grand jury indicted Poandl, known as “Father Bob”, in November 2012. FBI agents arrested him at the Glenmary Missioners in Fairfield, Ohio. He has been on house arrest with electronic monitoring since his arrest.

This case was 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 FBI agents and investigators with the Greater Cincinnati ICAC and the West Virginia State Police, as well as Assistant U.S. Attorneys Christy Muncy and Timothy Oakley.

Agencies participating in the Greater Cincinnati ICAC, in addition to FBI and HSI Agencies and the U.S. Attorney’s Office include the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil, and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.

CONTACT: Fred Alverson
Public Affairs Officer

DAYTON, OHIO – Diane Elizabeth Niehaus, 40, of Beavercreek, Ohio pleaded guilty to one count each of embezzlement, money laundering, and filing a false income tax return with the Internal Revenue Service (IRS) for her scheme to embezzle thousands of dollars from the accounts of customers of the branch bank she managed in Centerville, Ohio.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office announced the guilty pleas entered before U.S. District Judge Timothy S. Black.

According to court documents, Niehaus managed the Union Savings Bank branch in Centerville between 2007 and 2010. Using her position with USB, Niehaus created fraudulent withdrawal slips to withdraw thousands of dollars in funds from multiple customer accounts using cashier’s checks or official checks she wrote to herself between 2008 and 2010. Niehaus illegally earned thousands of dollars through this embezzlement scheme, and she failed to report this fraudulently-obtained income on her federal income tax returns.

"As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This investigation is a direct result of the excellent partnership IRS, FBI, and the U.S. Attorney’s office has in combating violations of Federal law."

Embezzlement is punishable by zero to 30 years in prison. Money laundering carries a potential penalty of zero to 20 years and filing a false tax return has a sentence ranging from zero to three years in prison. The court can also impose fines and order her to pay the costs of prosecution associated with the false tax return charge. A sentencing hearing is set for January 9, 2014.

The court will conduct its own investigation prior to sentencing Niehaus, including determining the actual amount of loss to victims.

U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and IRS, as well as Assistant U.S. Attorney Brent Tabacchi, who is prosecuting the case. U.S. Attorney Stewart also acknowledged the cooperation of U.S. Bank in the investigation.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO– Ovell Harrison, 55, of Columbus, Ohio pleaded guilty in U.S. District Court to one count of bank fraud and one count of aggravated identity theft in connection with his position as Director of Education Services at the Columbus Urban League between 2004 and 2010.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor – Office of the Inspector General Labor Racketeering and Fraud Investigations, Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General (HUD), and Columbus Police Chief Kim Jacobs announced the pleas entered today before U.S. District Judge Algenon L. Marbley.

According to testimony by an investigator with the Department of Labor, Harrison used his computers at the Columbus Urban League to prepare and submit false invoices to the Urban League. Harrison made it appear that invoices were payment for services contractors had provided to the Urban League. The contractors were unwitting persons Harrison knew personally. The Urban League processed the invoices, generated checks and either left the checks for hand pick-up by Harrison or mailed the checks to a mailbox Harrison rented. Harrison deposited the checks into one of three bank accounts he controlled. Harrison obtained $85,181.25 through the scheme.

“Today’s guilty plea underscores the Office of Inspector General’s commitment to uncover fraud involving Department of Labor grant funds intended to help those in need. The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

Bank fraud is punishable by up to 30 years in prison. The penalty for aggravated identity theft is a mandatory term of imprisonment of two years, which must be served after any time he serves for the bank fraud.

The court will conduct a pre-sentence investigation before determining the sentence and schedule a date for sentencing.

U.S. Attorney Stewart commended the investigation by Department of Labor, HUD and the Columbus Police, as well as Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO – Kenneth J. Horsley, 54, of Columbus pleaded guilty in U.S. District Court to robbing seven Columbus-area banks and one bank in Beavercreek, Ohio between June 2012 and March 2013. Investigators dubbed Horsley the “Bad Beard Bandit” because in all but one robbery he wore a fake beard.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs, Worthington Police Chief James R. Mosic, Dublin Police Chief Heinz von Eckartsberg and Beavercreek Police Chief Dennis Evers announced the pleas entered today before U.S. District Judge Edmund A. Sargus, Jr.

Horsley pleaded guilty to five counts of bank robbery, each of which is punishable by up to 20- years in prison, and three counts of armed bank robbery, which carries a maximum penalty of 25 years for each count. Judge Sargus will schedule a sentencing for Horsley.

According to court documents, Horsley entered the banks and demanded that the bank employees give him money. In three of the robberies, he brandished a handgun and threatened to shoot anyone who followed him.

Columbus Police officers arrested Horsley on March 15, 2013. He has been in custody since his arrest.

U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorneys David M. DeVillers and Laura M. Fulton who are prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO  –  Joshua M. Guyselman, 29, of Pataskala, Ohio pleaded guilty in U.S. District Court to one count of manufacturing counterfeit U.S. $100 bills.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, Ohio State Highway Patrol Superintendent Paul Pride, Reynoldsburg Police Chief Jim O’Neill and Pataskala Police Chief Bruce Brooks announced the plea entered today before U.S. District Judge Michael Watson.

According to testimony by a Secret Service agent during the plea hearing, Reynoldsburg Police officers detained Guyselman in February 2013 after he went to a local business and attempted to pass a counterfeit $100 bill he made. Further investigation revealed that Guyselman used a process known as “bleaching” to produce counterfeit bills on genuine paper used for U.S. currency that he then passed at area businesses in Licking County. 

“Bleaching” is a process in which chemicals are used to remove the ink from small denomination Federal Reserve notes. A counterfeiter will print the markings of a higher denomination note on the “bleached” note, often using a home computer and printer.

Counterfeiting of U.S. currency is punishable by up to 20 years in prison. Judge Watson will schedule a date for sentencing after the court completes a pre-sentence investigation. Guyselman will remain free on bond until sentencing.

U.S. Attorney Stewart commended the cooperative investigation by the Secret Service, the Highway Patrol, and the police departments in Pataskala and Pickerington, as well as Assistant U.S. Attorney Dale E. Williams Jr., who is prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO – Darnell J. Harris, 26, of Canal Winchester, Ohio, pleaded guilty in U.S. District Court to committing a takeover style armed robbery of a Reynoldsburg jewelry store in May, 2012 with his sister as an accomplice.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the plea entered September 9 before Senior U.S. District Judge Peter C. Economus.

Harris pleaded guilty to one count of obstructing interstate commerce (Hobbs Act), a crime punishable by up to 20 years in prison, and one count of brandishing a firearm during a crime of violence, a crime punishable by a mandatory seven-year term of imprisonment that Harris must serve consecutive to any prison time he receives for the robbery.

According to court documents, Harris’ sister, Mariah, entered Heins Jewelers posing as a customer shopping for engagement rings. Once she had the attention of both employees, Darnell entered the store carrying a handgun and ordered both employees into a back room. Harris tied up the employees. One loosened his restraints and tried to escape. Darnell viciously beat the employee with the gun, causing severe face and head trauma. The siblings fled the store with cash and jewelry.

Reynoldsburg and Pickerington police officers arrested Darnell Harris in March 2013 following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Darnell Harris has been in custody since his arrest. Judge Economus will set a date for sentencing.

Mariah Harris pleaded guilty on September 3, 2013 to one count of violating the Hobbs Act. 

U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorneys David J. Bosley and Doug Squires are representing the United States in the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO – John T. Childs, 48, of Columbus, Ohio was sentenced to six months in prison followed by five years under court supervision, for possessing eleven images of child pornography stored on his home computer. Childs was also ordered to register as a sex offender and allow the court to install monitoring software on his computer. 

Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, and Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the sentence imposed today by Senior U.S. District Judge James L. Graham.   

Childs is the former chief financial officer and chief operating officer for the Ohio Department of Education. He pleaded guilty on April 29, 2013 to one count of possession of child pornography. “At the time he entered his plea of guilty, the defendant admitted to utilizing a peer-to-peer file sharing program to download and view videos of child pornography on the computer located in his home,” Assistant U.S. Attorney Heather Hill wrote in a memorandum filed with the court prior to sentencing. Childs possessed approximately 11 images of child pornography on his desktop computer when HSI and ICAC officers executed a search warrant at his home on October 10, 2012.

Childs’ sentence also includes a requirement that he undergo mental health and sex offender treatment as directed by his probation officer. He will also be required to register as a sex offender in any state where he lives, works or goes to school while on supervised release. Judge Graham ordered him to report to an institution to be designated by the U.S. Bureau of Prisons within 60 days.

This case was 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/.

U.S. Attorney Stewart commended the investigation by HSI agents and ICAC officers, as well as Assistant U.S. Attorney Heather Hill, who prosecuted the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Jason C. Grossman, 31, of Westerville, Ohio pleaded guilty in U.S. District Court to one count of receipt of child pornography, a crime punishable by at least five years and up to 20 years in prison.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, and Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the plea entered today before U.S. District Judge Gregory L. Frost.   

According to court documents, in December 2012 Grossman met online someone claiming to be the father of prepubescent children. Grossman discussed the possibility of engaging in sexual activity with the man’s daughter. The “father” was actually an ICAC officer patrolling the internet.

Grossman scheduled an in-person meeting to confirm the details of the planned sexual activity then travel back to the man’s home. When Grossman arrived for the meeting on January 9, 2013, ICAC officers arrested him. Officers executed a search warrant at Grossman’s home and seized computers and storage media. Forensic examinations revealed that Grossman had downloaded approximately 49 images of child pornography from the internet.

Judge Frost will schedule a date for sentencing. Grossman’s sentence could also include being placed under court supervision after serving his prison term for at least five years and up to life. Grossman remains on house arrest until sentencing.

This case was 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/.

U.S. Attorney Stewart commended the investigation by ICAC task force officers and HSI Special Agents, as well as Assistant U.S. Attorney Heather Hill, who is prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS –John H. Gregory, 57, of Reynoldsburg, Ohio pleaded guilty to one count of failing to account for and pay over employment taxes to the Internal Revenue Service (IRS) and to one count of obstruction of federal investigations.  The total tax loss in this case is approximately $1,136,292.34.  Gregory faces a maximum of 20 years in prison and a fine of up to $250,000.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the guilty plea entered before U.S. District Judge Gregory L. Frost.

According to court documents, between July 2007 and October 2010 Teach Tec was a corporation doing business in Columbus, Ohio.  Gregory exercised control over all of Teach Tec’s business affairs, including approving payments made by Teach Tec and having control over Teach Tec’s bank accounts.  Gregory was responsible for collecting, truthfully accounting for, and paying over Teach Tec’s payroll taxes to the IRS.

Teach Tec withheld payroll taxes from its employees’ paychecks, including federal income taxes and Federal Insurance Contributions Act taxes (FICA), but made only one small payment to the IRS, despite such payments being required on a quarterly basis.

Gregory willfully failed to account for and pay over to the IRS nearly all of the payroll taxes due and owing on behalf of Teach Tec and its employees.  Specifically, Gregory failed to pay any of the payroll taxes due and owing to the IRS for the Second Quarter of 2010. Records reflect that for that quarter, Teach Tec owed $17,148.37 in Tax due and owing, however Teach Tec made no payment of taxes for that quarter.  As a result of this scheme, the Department of Treasury, Internal Revenue Service, suffered a total tax loss of $1,136,292.34.

In December 2011 Gregory knowingly falsified and made a false entry in the employment records with the intent to impede, obstruct, and influence the investigation and the proper administration of a grand jury investigation.

Gregory provided false documents to the grand jury pursuant to a subpoena request in the investigation of Kevin Hightower. The false documents Gregory provided to the grand jury purported to explain several payments totaling $66,865.00 from Teach Tec to several entities controlled by Kevin Hightower and his associates. The records provided to the Grand Jury fraudulently claimed Teach Tec was paying Hightower and his associated companies for employing Teach Tec clients. In fact, none of the individuals named on the documents produced by Gregory to the Grand Jury were ever employed by Kevin Hightower or his related entities.  Gregory in fact falsified these records to conceal the fact that he had assisted Kevin Hightower in withdrawing funds from the Fred D. Hightower Charitable Trust for his own personal use, rather than for charitable purposes.

“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.  "The failure to pay over withheld taxes is a serious offense.  IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."

This case is being prosecuted by Assistant U.S. Attorney Laura M. Fulton and was investigated by special agents of IRS-Criminal Investigation.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO – Elie J. Hannoush, 41, of Westerville, Ohio was sentenced in U.S. District Court today to 12 months and one day in prison followed by eight months of home confinement and ordered to pay $91,140.46 in restitution to the IRS for failing to report income he received from the jewelry stores he owns, Farah Jewelers, from 2005 through 2008.

Carter M. Stewart, 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 announced the sentence handed down today by Senior U.S. District Judge George C. Smith.

Hannoush pleaded guilty in November 2012 to one count of tax evasion and one count of failure to report cash payments greater than $10,000 received in a business.

According to court documents, Hannoush often accepted large cash payments from his customers, but failed to report the cash he received as income. Hannoush also admitted he kept a separate accounting system for the cash receivables. Hannoush also admitted he would structure cash receipts by breaking receipts greater than $10,000 into small receipts in order to evade federal cash reporting requirements.

Hannoush admitted that he did not report almost $300,000 in cash from the business. When he filed his federal income tax return for 2006, he reported an income of $27,054 and claimed he was due a $30 refund. His real taxable income for 2006 was $194,817.10 and he owed taxes of $35,188.79 for that year.

U.S. Attorney Stewart commended the investigation by IRS Special Agents and Financial Crimes Chief Brenda Shoemaker, who prosecuted the case.

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CONTACT: Fred Alverson
Public Affairs Officer

DAYTON, OHIO – Mickey Allen Fugate, Jr, 40, of Dayton, Ohio pleaded guilty in U.S. District Court to one count of interference with commerce by threats or violence (Hobbs Act) and one count of possession of a firearm following three or more violent felony convictions, (Armed Career Criminal Act). If the court accepts the terms of the plea agreement, Fugate will serve at least 20 and up to 30 years in prison.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Dayton Police Chief Richard Biehl announced the pleas entered today before U.S. District Judge Walter H. Rice.

According to court documents, Fugate robbed at gunpoint the Kwik-n-Kold convenience store on Wyoming Street in Dayton on November 14, 2009. During the robbery, Fugate shot and wounded one of the employees and fled with less than $500 in cash.

Officers with the FBI Dayton Safe Streets Task Force recovered a 9mm firearm loaded with nine rounds of ammunition, the store’s cash register tray, a tip jar and approximately $168 from a residence to which Fugate fled following the robbery. Fugate was arrested and has been in custody since his arrest.

Fugate’s criminal record includes prior federal convictions for bank robbery, use of firearms in a crime of violence and attempted escape, and two burglary convictions in state court. Under federal law, this qualifies Fugate as an armed career criminal.

The court will conduct a pre-sentence investigation and determine whether or not to accept the terms of the plea agreement.

U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and Dayton Police, as well as Assistant U.S. Attorneys Vipal Patel and Mary Beth Young, who are prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

DAYTON, OHIO – Saleen M. Nolan, 26 of Dayton, Ohio pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Nolan faces a maximum prison sentence of 10 years and a fine of up to $250,000.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Cleveland, Ohio announced the guilty plea entered yesterday before U.S. Magistrate Judge Sharon L. Ovington.

According to court documents, between March 2008 and March 2009 Nolan, a VA employee, participated in a conspiracy to obtain personal identifying information, including dates of birth, Social Security numbers, and addresses from individuals who lived in the Dayton, Ohio area. Nolan used this personal identification information to fraudulently prepare and submit to the IRS false income tax returns in the names of dozens of other individuals. Each of these income tax returns falsely claimed that the purported taxpayer was entitled to a substantial income tax refund from the IRS. 

In filing these false claims for income tax refunds, as well as checking on the status of the income tax refunds, Nolan used a government computer that belonged to the Department of Veteran Affairs. Nolan kept a portion of the fraudulent income tax refunds and provided the remainder to the taxpayer identified on the fraudulent income tax return.

Nolan was released on bond pending sentencing. A date for sentencing has not yet been set.

On August 15, 2013 Ebony F. Taste, 27, of Trotwood, Ohio pleaded guilty to one count of one count of conspiracy to file false claims for federal income tax refunds with the IRS. Between March 2008 and March 2009 Taste participated in a conspiracy to obtain personal identifying information, including dates of birth, Social Security numbers, and addresses from individuals who lived in the Dayton, Ohio area. Taste used this personal identification information to fraudulently prepare and submit to the IRS false income tax returns in the names of dozens of other individuals. Each of these income tax returns falsely claimed that the purported taxpayer was entitled to a substantial income tax refund from the IRS.  Taste kept a portion of the fraudulent income tax refund and provided the remainder to the taxpayer identified on the fraudulent income tax return.

On August 15, 2013 Jazmen Yates, 30, of Galloway, Ohio pleaded guilty to one count of filing false claims for federal income tax refunds with the IRS. In February 2009 Yates knowingly submitted a false and fraudulent claim for an income tax refund to the IRS in excess of several thousand dollars by filing a false income tax return with the IRS in her name that she knew contained falsely inflated income and taxes she allegedly paid to the IRS during the 2008 income tax year.

Taste and Yates pleaded guilty before U.S. District Court Judge Timothy S. Black and they both remain on bond pending sentencing which has been scheduled for December 5, 2013.

Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office stated, “The object of this refund fraud scheme was to swindle the government and the taxpaying public. In this case IRS Criminal Investigation and our partners at the U.S. Attorney’s Office and the U.S. Department of Veterans Affairs identified, investigated and vigorously prosecuted those who were involved in filing false claims for refunds.”

These cases are being prosecuted by Assistant United States Attorney Brent Tabacchi and investigated by special agents of IRS-Criminal Investigation and the U.S. Department of Veterans Affairs, Office of Inspector General.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Wendy Harper, 44, of Columbus, Ohio was sentenced in U.S. District Court to 24 months in prison, three years of supervised release, and ordered to pay restitution in the amounts of $588,121.46 to the U.S. Department of Housing and Urban Development (HUD) for embezzling HUD program funds from her employer, and $126,345.36 to the Internal Revenue Service (IRS) for filing a false federal income tax return.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the sentence handed down today by U.S. District Judge Gregory L. Frost.

According to court documents, Harper was responsible for managing payroll and payment functions for her employer, Harvest Management Group, Inc., which managed more than 900 units for elderly and disabled people who qualify for HUD assistance. Harper manipulated the payroll system to give herself unauthorized salary increases and unauthorized mileage reimbursements between 2009 and 2012. According to calculations made by criminal investigators in this case, Harper would have had to have driven more than 1,200,000 miles in order for the mileage reimbursements to have been legitimate.

Harper pleaded guilty to the aforementioned charges on February 6, 2014.  In her plea agreement, Harper acknowledged that the U.S. showed the amount of money she embezzled was $588,121.46 and that she concealed her crime by filing false federal income tax returns for 2009, 2010 and 2011, on which she failed to report the HUD program funds she stole. Harper’s theft of these program funds contributed to Harvest Management Group, Inc. having difficulties maintaining the properties to minimum HUD standards and paying its property taxes.

U.S. Attorney Stewart commended the investigation by HUD and the IRS, the Reynoldsburg Police who referred the case for federal investigation, and Assistant U.S. Attorney Dale E. Williams Jr., who represented the United States in this case.

CONTACT: Fred Alverson
Public Affairs Officer

Antonio Weathers, 42, of Cincinnati, Ohio was sentenced in Cincinnati today to 17 months in prison for his role in a mortgage fraud scheme involving several mortgage lenders that were defrauded as a result of falsified loan documents submitted for purchases of multiple Cincinnati-area properties.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the sentence handed down by Chief United States District Judge Susan J. Dlott.

Weathers pleaded guilty on April 8, 2013 to one count of mail fraud and one count of money laundering. According to court documents, Weathers formed a real estate business in which he arranged for the purchase and resale of mostly low income properties. Weathers committed mail fraud by securing mortgage closing funds for the purchase of a property located in Cincinnati, Ohio which resulted in a U.S. Postal Service Express Mail package to be sent from Strongtower Title Agency to the lender, Preferred Capital. Weathers then transferred $42,532.43 in mail fraud proceeds from one bank account to another bank account in the name of Antonio Weathers, d/b/a, KI Enterprises.

Weathers was also sentenced to serve three years of supervised release after his prison term and was ordered to pay $242,340 in restitution to the victim lenders.

On June 25, 2013 Sylvia Odia Thomas, 41, formerly of West Chester, Ohio was sentenced by Senior U.S. District Judge Herman J. Weber to 30 months in prison for her role in this mortgage fraud scheme.  She pleaded guilty on November 6, 2012 to one count of mail fraud and one count of filing false income tax returns. Both crimes were committed in connection with her business as a mortgage broker. “She habitually falsified documentation for loan applications for her clients and failed to report her correct income to the IRS,” Assistant U.S. Attorney Tim Mangan wrote in a memorandum filed with the court prior to sentencing.

Thomas willfully filed false federal income tax returns with the IRS for the 2006 through 2009 income tax years. These federal income tax returns did not include substantial amounts of additional income that was paid to Thomas in the form of broker closing and processing fees that were obtained from brokering and closing client loans. In total, Thomas underreported her gross receipts by $312,882 for the 2006 through 2009 income tax years, resulting in a tax loss of $95,422.14. The Court determined the amount of loss attributable to Thomas from mortgage fraud was $313,021.

Thomas operated a home renovation company and later started her own mortgage brokerage business. Eventually, she began writing false income and employment information on loan applications in order to get her clients approved. She also fabricated false supporting documents that were sent to the lenders and created false down payments for her clients by making cashier’s checks to look like earnest money from the clients.

Thomas was ordered to serve three years of supervised release after her prison term and must pay $313,021 in restitution to lenders, plus $95,422.14 to the IRS.

“By now, there have been enough mortgage fraud related convictions around the country that those who are thinking about doing it ought to know that they are going to get caught,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

U.S. Attorney Stewart commended the cooperative investigation conducted by IRS Special Agents and Postal Inspectors, and Assistant United States Attorney Mangan who prosecuted this case.

CONTACT: Fred Alverson
Public Affairs Officer

A federal grand jury has charged Brenda Ashcraft, 43, of Milford, Ohio, with defrauding investors of at least $15 million between 2009 and 2013 in a scheme to purchase and sell real estate through real estate investment trusts known as REITs.

Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI); Mark Porter, Special Agent in Charge, U.S. Secret Service; and Andre T. Porter, Director of Ohio Department of Commerce, announced the indictment that was returned on August 21, 2013.

The indictment alleges that Aschraft owned and operated French Manor Properties, which she told investors was acting as the REIT Trustee that would “secure residential and commercial real estate at wholesale pricing.”  Investors believed that their investments were secured by real estate and Ashcraft promised them 40% annual returns on their investments.

Instead, the indictment alleges, Ashcraft diverted investor funds to her own personal use and benefit, including a $50,000 investor payment that she used to pay for Cincinnati Reds season tickets.  Ashcraft would at times send investors checks for returns on their investments but the checks often bounced.

The indictment charges Ashcraft with one count of wire fraud and one count of securities fraud, each punishable by up to 20 years in prison.  She is also charged with one count of engaging in a monetary transaction in criminally derived property and aiding and abetting, punishable by up to 10 years in prison.  She faces a maximum fine of $5 million on the securities fraud charge.  The wire fraud and monetary transaction charges each carry maximum fines of $250,000, or two times the loss, with restitution possible on both counts.

Ashcraft is scheduled to appear Friday, August 23, 2013 at 1:30 p.m. before United States District Court Magistrate Judge Karen L. Litkovitz to answer the charges.

Stewart commended the cooperative investigation of this case by FBI and Secret Service agents, Ohio Department of Commerce, Division of Securities staff, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are prosecuting the case.

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

CONTACT: Fred Alverson
Public Affairs Officer

Christopher Bradley, 38, of Blanchester, Ohio was convicted by a federal court jury in Cincinnati of two counts of selling firearms to a felon.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), announced the guilty verdict returned by a jury following a five-day trial before U.S. District Court Judge Michael R. Barrett.

Bradley, and his brother Shannon Bradley, 36, of Leesburg, were indicted on April 4, 2012 on multiple counts of selling firearms to felons.  Shannon Bradley previously pleaded guilty to one count of selling firearms to a felon, after obtaining guns from his brother, Chris Bradley, and then selling them to an informant.

According to trial testimony, in February 2012 Chris Bradley met with the same informant, who repeatedly mentioned that he planned to resell the firearms in Cincinnati to “people that might need to use them and ditch them” and to people that were “protecting their dope houses and not getting killed.” Bradley helped the informant carry six firearms and ammunition to the informant’s car, as he told the informant to keep the guns and ammunition separated in case he were pulled over. The informant commented that officials would never find the guns and ammunition because he was a felon, while Bradley helped the informant load his car.  Bradley sold seven more guns and ammunition to the same informant two days later.

During a recorded phone call with Bradley on March 5, 2012, the informant again advised Bradley that he had one felony on his record.  Bradley then sold a total of nine more guns and ammunition to the informant on March 9 and March 21, 2012.  Testimony further revealed that Bradley sold guns at gun shows many times and would routinely asked people if they were felons.

Bradley faces a maximum sentence of 10 years in prison, 3 years of supervised release, and a fine of up to $250,000 on each count. He will be sentenced at a later date.  His brother, Shannon, also awaits sentencing.

Stewart commended the investigation by ATF agents, along with Special Assistant United States Attorney Gregory Stephens and Cincinnati Branch Chief Anthony Springer, who are prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

Richard Trepanier, 40, of Gettysburg, Ohio was sentenced to 168 months in prison for receiving and possessing child pornography in a case that began with an undercover investigation by Australian law enforcement.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence handed down today by U.S. District Judge Thomas M. Rose.

Following a six-day trial, a jury convicted Trepanier on April 16, 2013 of one count of receipt of child pornography and one count of possession of child pornography.

Trepanier, using the name “Wingman66”, contacted an Australian Federal Police undercover officer patrolling the internet in February 2008 and offered him images of child pornography. The Australian authorities tracked the user name to Trepanier and sent the information to the FBI’s office in Cincinnati.

FBI agents interviewed Trepanier who consented to a search of his computer by the Miami Valley Regional Computer Forensics Laboratory. Their analysis identified approximately 56 images of child pornography and evidence that Trepanier was trading child pornography.

“This case demonstrates the international cooperation that is necessary to protect children from exploitation,” U.S. Attorney Stewart said.

“These series [of images] were created not only within the United States (Washington, North Carolina, Florida, and Georgia), but they were also created abroad (France, England, Denmark, Germany, Paraguay, and Belgium),” Dayton Branch Chief Laura Clemmens and Assistant U.S. Attorney Christy Muncy wrote in a memorandum filed with the court prior to sentencing. “This simple fact highlights the heartbreaking reality of the child pornography industry: it knows no borders.”

Trepanier was also sentenced to serve ten years under court supervision after completing his prison sentence. While under court supervision, he must register as a sex offender anywhere he lives, works or goes to school.

This case was 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/.

U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Clemmens and Muncy, who prosecuted the case. 

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Audrey Costar, 46, of Whitehall, Ohio was sentenced in U.S. District Court to 48 months in prison for using 50 stolen identities to file for unemployment benefits in eight states over three years. She was also ordered to repay $78,674 she received illegally.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations, Mark Porter, Special Agent in Charge, U.S. Secret Service and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General announced the sentence handed down today by Senior U.S. District Judge James L. Graham.

According to court documents, Costar used 50 stolen identities, including some she stole over the internet, to electronically file false unemployment insurance claims in Alaska, Arizona, Colorado, Minnesota, Montana, Ohio, Pennsylvania and Utah between February 2009 and December 2012.

Costar also used some of the identities to open bank accounts or cash value cards over the internet to which the unlawful unemployment benefits would be deposited. After the payments were made, Costar would withdraw the payments using an automated teller machine and used the money for her own benefit. Costar was able to defraud the UI system while residing in both Ohio and New York. She collected approximately $78,674 using the scheme.

Costar was also collecting Social Security benefits in her own name at the time. Earnings made through the identity theft scheme were not reported to the Social Security Administration.

Costar pleaded guilty on April 5, 2013 to two counts of theft of government funds and two counts of aggravated identity theft.

U.S. Attorney Stewart commended the investigation by U.S. Department of Labor Office of Inspector General, Secret Service agents and Social Security Administration inspectors general, and Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.

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CONTACT: Fred Alverson
Public Affairs Officer

DAYTON – Thuron L. Hammersley, 44, of Fairborn, Ohio pleaded guilty in U.S. District Court today to one count of transporting an individual from Ohio to Kentucky for purposes of engaging in prostitution.  He also admitted enticing a woman to travel from Kentucky to Ohio also to engage in prostitution and obstructing the investigation into his activities.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Miamisburg Police Chief John Sedlak announced the plea entered today before U.S. District Judge Timothy S. Black.

According to court documents, Hammersley met the women on the website www.plentyoffish.com and placed ads for them on the internet site www.backpage.com offering the women as “escorts.”  He directed the men who responded to the ads to motels in Kentucky and Ohio, where they engaged in sexual activity for money.  He also enticed another woman to travel from Kentucky to the Dayton area to engage in prostitution. Hammersley enticed her by offering her employment, by paying for her bus ticket, and by paying for condoms. Hammersley collected the money paid by the men.

The plea agreement includes a recommended sentence of 78 months in prison followed by five years of supervised release. Under the terms of the plea agreement, the Court will review a pre-sentence investigation report before determining whether or not to accept the recommended sentence.

The case was investigated by the FBI and the Dayton and Miamisburg police departments. Assistant U.S. Attorneys Vipal Patel and Alex R. Sistla and Department of Justice Trial Attorney Betsy Biffl prosecuted the case.

CONTACT: Fred Alverson
Public Affairs Officer

DAYTON – Lamont P. Pryor, 47, of Lima, Ohio pleaded guilty in U.S. District Court to violating the Clean Air Act in connection with his company’s handling of asbestos during the demolition of the former Piqua Medical Center in 2008. 

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine and Scott J. Nally, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the pleas entered today before U.S. District Judge Timothy S. Black.

“The dangers of improperly handled asbestos are well-known and well documented,” U.S. Attorney Stewart said. “Knowingly failing to handle the material properly is a crime and must be punished.”

According to court documents, Pryor and his company, Avalon Commonwealth Inc., removed scrap metal from the hospital as part of the demolition process. The scrap metal was removed and sold, but the rest of the demolition debris, including friable asbestos, was piled in areas around the hospital, exposed to the wind and elements. Pryor knew that he was not supposed to leave the friable asbestos outside the hospital, exposed to the elements, but instead was supposed to properly deposit the asbestos that was generated as result of his renovation and demolition activities at the hospital at a licensed asbestos waste disposal facility. Pryor knowingly failed to do so.

A representative of the Regional Air Pollution Control Agency (RAPCA), the local air pollution control agency serving Miami County and the city of Piqua, inspected the site in December 2008, saw the damaged asbestos outside the hospital, and asked that demolition be halted while the investigation took place.

“This defendant put his workers and the residents of a Piqua neighborhood at risk of asbestos exposure just to cut corners,” Attorney General DeWine said.  “We cannot tolerate a knowing choice to violate the law and risk the health of Ohio families, and our Environmental Enforcement Unit will continue to investigate criminal environmental activity within the state.”

“There is no safe level of exposure to asbestos,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio.  “Despite knowing that the Piqua Hospital contained friable asbestos, the defendant failed to notify authorities before demolition as required by law nor did he employ qualified workers to remove it legally and safely.  As a result, asbestos was broken up and piled in areas around the hospital, threatening the environment and jeopardizing the safety of the general public.  Today’s plea clearly shows that anyone who tries to make money by breaking the law will ultimately pay the price.”

Pryor pleaded guilty to three counts of violating the asbestos removal provisions of the Clean Air Act. The plea agreement includes an agreed-to sentence of 13 months in prison. The court will review the terms of the agreement before determining whether or not to accept all the terms, including the sentence.

The case was investigated by the U.S. EPA's Criminal Investigation Division, Bureau of Criminal Investigation’s Environmental Enforcement Unit in Ohio Attorney General DeWine’s Office, the Ohio EPA Office of Special Investigations and RAPCA. It was prosecuted by Assistant U.S. Attorney Alex Sistla and Special Assistant U.S. Attorney Brad Beeson with the U.S. EPA.

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CONTACT: Fred Alverson
Public Affairs Officer

DAYTON – Kevin Dwayne Todd, 42, of Ludlow Falls, Ohio was sentenced in U.S. District Court to 300 months in prison for producing sexually explicit videos of pre-pubescent children he babysat and offering online to trade the videos. Todd will be under court supervision for the rest of his life.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott, Miami County Sheriff Charles A. Cox, and Darke County Sheriff Toby L. Spencer announced the sentence handed down today by U.S. District Judge Timothy S. Black.  

 “Sexual exploitation of children by someone who has the responsibility of caring for them is a devastating crime,” U.S. Attorney Stewart said. “As a sex offender, he must now register with law enforcement anywhere he lives, works or goes to school once he gets out of prison.”

According to court documents, an undercover investigator with the Franklin County Internet Crimes Against Children Task Force (ICAC) responded to an ad Todd posted on the internet in November 2012 seeking people looking for “taboo.” Through a series of emails, Todd asked the undercover investigator to meet and trade videos and pictures of child pornography. They arranged a meeting and officers arrested Todd on November 24, 2012 when he showed up for the meeting. Investigators found DVDs and other storage media containing pornographic videos and photos in Todd’s car.

Forensic examination found that Todd had produced the videos of the females between August 2010 and November 2012 in the bathroom of his residence.

Todd has been held without bond since his arrest. He pleaded guilty on March 7, 2013 to one count of sexual exploitation of children.

This case was 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/.

U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Sheila Lafferty, who is representing the United States in this case. 

CONTACT: Fred Alverson
Public Affairs Officer

A federal grand jury returned a ten-count indictment against Abubakar Atiq Durrani, 44, Mason, Ohio alleging that, beginning in 2009, he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI), Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Bret Flinn, Resident Agent in Charge, Defense Criminal Investigation Service (DCIS) announced the indictment returned today.

Durrani owns a private practice called the Center for Advanced Spine Technologies (CAST) with offices in Evendale and Florence, Kentucky.

The indictment alleges that, in some instances, the scheme to defraud resulted in serious bodily injury. As part of this scheme to defraud, Durrani performed unnecessary procedures and made false statements in relation to lumbar, thoracic, and cervical surgeries.

The indictment alleges that Durrani would tell the patient the medical situation was urgent and that back surgery was needed right away. He would also falsely tell the patient that he/she was at risk of grave injuries without the surgery. For cervical spine patients, Durrani would often tell a patient that there was a risk of paralysis or the head would fall off if the patient was in a car accident because there was almost nothing attaching the head to the patient’s body.

The indictment also alleges that Durrani made false statements to patients, colleagues and hospitals in order to further his scheme.

The indictment charges Durrani with five counts of health care fraud and five counts of making false statements in health care matters. Health care fraud is punishable by up to 20 years in prison. The crime of making false statements in health care matters is punishable by up to five years in prison. The indictment also seeks forfeiture of any proceeds Durrani received as a result of the scheme.

Stewart commended the cooperative investigation by agents and officers of the agencies named above, along with the Ohio Medical Board and Kentucky Medical Board, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are representing the United States in the case.

Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477.  To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.

An indictment contains allegations and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. 

CONTACT: Fred Alverson
Public Affairs Officer

Todd R. German, 51, of Richwood, Ohio was sentenced in U.S. District Court to 48 months in prison for possessing more than 10,000 images and 200 videos of child pornography. German was a fire service instructor at the Delaware Career Center.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI) and Delaware County Sheriff Russell L. Martin announced the sentence imposed today by Senior U.S. District Judge Peter C. Economus.   

According to court documents, German left his job at the Delaware Career Center in March 2012. The day after he left, another employee found a thumb drive in German’s desk, placed it in a computer and found hundreds of images of child pornography. The employee contacted school officials who called the Delaware County Sheriff’s Office.

In April 2012, investigators executed a search warrant at German’s residence and found an external drive connected to his computer. A forensic examination of the external drive yielded more than 10,000 images and 222 videos of suspected child pornography. The investigation determined that the victims were from at least 17 different states and 7 different countries. German pleaded guilty in March, 2013 to one count of possession of child pornography.

“He basically had the American dream in every aspect of his life -- a long marriage, children, grandchildren, health, a meaningful career, respect of community, home ownership, and material possessions,” Assistant U.S. Attorney Deborah A. Solove wrote in a memorandum filed with the court prior to sentencing. “Although he has lost much of that through his actions that led to this case, he appears to be working on the child pornography issues and says he is grateful to have the opportunity to try address these issues that have troubled him throughout his life.”

This case was 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/.

U.S. Attorney Stewart commended the investigation by FBI agents and Sheriff’s detectives, as well as Assistant U.S. Attorney Deborah Solove, who prosecuted the case.

CONTACT: Fred Alverson
Public Affairs Officer

A U.S. District Court jury in Columbus, Ohio convicted Jack A. Morris, 37, of Columbus of gun and drug trafficking crimes. Morris faces a mandatory minimum sentence of 30 years.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Gahanna Police Chief Dennis Murphy announced the verdict returned today following a trial that began July 29 before U.S. District Judge Gregory L. Frost.

Trial testimony showed that Morris and others supplied street level distributors of marijuana, cocaine and oxycodone with firearms and body armor as a way of protecting themselves from potential robberies. Morris also placed firearms in strategic locations throughout his house in order to intimidate potential robbers and protect the narcotics and proceeds kept at the house.

The jury convicted Morris of one count of conspiracy to distribute oxycodone, two gun counts, and nine counts of illegally trafficking marijuana and oxycodone.

Two others indicted with Morris in April 2013, Jeremy S. Baker, 25, of Blacklick, and Judy L. Kindle, 45, of Columbus, pleaded guilty to charges of conspiracy and possession with intent to distribute oxycodone. Christopher Wilcox, 30, of Reynoldsburg, pleaded guilty to supplying firearms including an AK-47 and an AR-15, knowing that the weapons were to be used in the drug trafficking.

Judge Frost will schedule a date for sentencing. Morris has been in custody since his arrest in May 2013.

U.S. Attorney Stewart commended the investigation conducted by ATF and the Gahanna Police officers, and Assistant U.S. Attorney David DeVillers and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Mohamed Keisar, 36, of Phoenix, Arizona, pleaded guilty in U.S. District Court to one count of conspiracy to possess with the intent to distribute and to distribute 100 kilograms or more of marijuana and to one count of unlawfully operating an unlicensed money transmitting business. Keisar faces a minimum mandatory sentence of five years in prison and up to 40 years in prison and a fine of up to $5 million.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS), Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco and Firearms, William Hayes, Acting Special Agent in Charge, Homeland Security Investigations, Columbus Division of Police Chief Kim Jacobs announced the guilty plea entered before U.S. District Judge Edmund A. Sargus, Jr.

According to court documents, a joint investigation determined that between January 2009 and December 2012, Keisar was involved in the transportation, sale, and distribution of marijuana in the Southern District of Ohio. Specifically, the investigation found that Keisar, a truck driver, transported marijuana from California and Arizona, to Columbus, Ohio via semi-tractor trailer. The marijuana, which would be co-mingled with legitimate loads, would then be off-loaded to Keisar’s co-conspirators.

Keisar knowingly operated an unlicensed money transmitting business by physically transporting the money that was derived from the sale of marijuana in Columbus, Ohio back to California and Arizona.

On November 27, 2012 investigators, while conducting surveillance, observed a subject provide Keisar with $939,220 in U.S. Currency that had been derived from the sale of marijuana in Columbus, Ohio. Keisar was to transport the U.S. currency in his semi-tractor trailer from Columbus, Ohio to San Diego, CA and to deliver the funds to the source of supply. IRS agents determined that Keisar has never registered and/or been licensed to operate a money transmitting business by the Department of Treasury.

As part of the plea agreement, Keisar agreed to forfeit $1,070,513.83 in U.S. currency either seized from Keisar’s vehicle or from a co-conspirator on several dates between February 2012 and November 2012

Stewart commended the cooperative investigation conducted by the agents and officers of IRS, ATF, HSI, and the Columbus Division of Police. Stewart also commended Assistant U.S. Attorney David DeVillers who is representing the United States.

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CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI – Federal and state health care fraud investigators arrested Abubakar Atiq Durrani, 44, Mason, Ohio today based on a federal complaint alleging that he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI), Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Bret Flinn, Resident Agent in Charge, Defense Criminal Investigation Service (DCIS) announced the arrest.

Durrani owns a private practice called the Center for Advanced Spine Technologies (CAST) with offices in Evendale and Florence, Kentucky.

The complaint charges Durrani with one count of health care fraud and one count of making false statements in health care matters. Health care fraud is punishable by up to 20 years in prison. The crime of making false statements in health care matters is punishable by up to five years in prison.

Durrani will appear before U.S. Magistrate Judge Stephanie Bowman in Cincinnati at 1:30 today.

Stewart commended the cooperative investigation by agents and officers of the agencies named above, along with the Ohio Medical Board and Kentucky Medical Board, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are representing the United States in the case.

Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477.  To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.

A criminal complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. 

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO -- Christopher E. Pelloski, MD, 39, of Upper Arlington, Ohio, turned himself in to law enforcement authorities today after a federal complaint was filed charging him with downloading child pornography.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and Upper Arlington Police Chief Brian Quinn announced the federal charges today.

Pelloski was a radiation oncologist at the James Cancer Hospital of the Ohio State University Comprehensive Cancer Center in Columbus, where he also held the title as the Director of the Pediatric Radiation Oncology Program.

The Franklin County Internet Crimes Against Children Task Force (ICAC) executed a search warrant at Pelloski's residence on July 16, 2013 and found evidence indicating that Pelloski had downloaded sexually explicit videos of children. Investigators will conduct additional forensic analysis on Pelloski's computers.

"A criminal complaint is only a charge and is not evidence of guilt," U.S. Attorney Stewart said. "The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt."

The complaint charges Pelloski with one count of receipt of child pornography which is punishable by a sentence ranging from five to 20 years in prison. Pelloski will appear before U.S. Magistrate Judge Norah McCann King at 3:30p.m. today at the Kinneary Federal Courthouse, 85 Marconi Boulevard.

"Our ICAC investigators are highly trained and have technology at their disposal to fully go after these destroyers of innocence," said Sheriff Zach Scott. "This suspect's actions are reprehensible and make no mistake that going after predators like these is a priority.  Congratulations to the ICAC unit and to all involved in finding justice for the victims."

Chief Brian Quinn of the Upper Arlington Police Department said, "This type of criminal activity can impact any community, it's especially difficult when it involves someone we all have confidence and trust in. This investigation reinforces the importance of pooling our resources to better address the problem of computer facilitated crimes against children as well as highlight the importance of internet safety education for parents and children."

The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. Since the task force began in 2009, over 400 arrests have been made and dozens of child victims of sex abuse and exploitation have been identified and rescued.

The following agencies are members:

Franklin County Sheriff’s Office
Upper Arlington Police Department
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Whitehall Police Department
Hilliard Police Department
Westerville Police Department
Homeland Security Investigations
U.S. Secret Service
Ohio ICAC
U.S. Attorney's Office, Southern District of Ohio
Franklin County Prosecutor'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 Obsencity Section (DEOS), 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.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Justin Stewart Mote, 33, of Marysville was sentenced in U.S. District Court to 300 months in prison for coercing or enticing a minor to engage in illegal sexual activity. Mote will also be under court supervision for the rest of his life.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC) and William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.  

Mote pleaded guilty on February 21, 2013 to one count of using the internet to coerce or entice a minor to engage in unlawful sexual activity. According to testimony presented during the plea hearing, Mote met a 12-year old online and went to Connecticut and Pennsylvania to visit the minor in 2012. Franklin County ICAC investigators received information from a Newtown, Connecticut police officer on October 16, 2012 after the child’s father found letters, text messages and gifts from Mote. Investigators executed a search warrant at Mote’s residence on October 19 and found fully nude photographs of the victim on various media devices including a tablet computer belonging to Mote. 

“Sexual predators present a grave danger to the community,” U.S. Attorney Stewart said. “Few crimes damage our society more than crimes of child exploitation.”

Mote, who was under indictment on state charges of attempted unlawful sexual contact with a minor and importuning in connection with a separate incident, that occurred in August 2011, was arrested. He has been in custody since his arrest.

“A substantial prison sentence like the one handed down today should serve as a stark reminder of what awaits those who sexually exploit children,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. HSI will continue to aggressively target those who prey upon and sexually exploit our children.”

This case was 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/.

Judge Sargus also ordered Mote to undergo a sexual offender treatment program offered by the U.S. Bureau of Prisons. Mote will also be required to register as a sex offender for the rest of his life anywhere that he lives, works or goes to school.

U.S. Attorney Stewart commended the investigation by HSI agents and ICAC task force officers, as well as Assistant U.S. Attorney Heather Hill, who is prosecuting the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Mickell E. Close, 32, of Quincy, Ohio was sentenced in U.S. District Court to 300 months in prison for recording nude images of three young children in his house and exchanging them on the Internet for images of child pornography.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott who heads the Franklin County Internet Crimes Against Children (ICAC) Task Force, and Logan County Sheriff Andrew J. Smith announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr.

Close pleaded guilty on January 17, 2013 to one count of using minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. According to a statement read by an HSI agent during the plea hearing, law enforcement officials patrolling the internet in June 2012 identified an email account connected to sharing child pornography. Investigators traced the account to Close.

Further investigation found that Close had placed cameras in his house to surreptitiously record video of three minor females as young as three years old as they were nude in the bathroom. He created hundreds of videos and thousands of still images of the victims and posted and traded the photos and videos by email and the internet in exchange for images and videos of child pornography.

“Once images of exploitation are on the internet, they never go away,” U.S. Attorney Stewart said. “This adds to the indignity and humiliation the victims are already facing.”

“The defendant’s actions in this case involve his ongoing abuse of the trust that was placed in him by three pre-pubescent girls and their families,” Assistant U.S. Attorney Heather Hill wrote in a memorandum filed with the court prior to sentencing. “This devastating invasion of the privacy of young girls was further exacerbated by the defendant’s trading of the images and videos he had created to others who shared his perverted interests.”

Logan County Sheriff’s deputies working with HSI arrested Close on November 9. He has been in custody since his arrest.

“Today's sentencing is another step toward healing for the victims of the depraved acts perpetrated by the defendant in this case,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “While we cannot restore the innocence stolen from the young victims in cases like these, we will continue to make the aggressive pursuit of their predators among our highest priorities.”

“Individuals who represent the worst of the worst are the reasons why we do what we do,” Franklin County Sheriff Scott said. “Close’s sentence can prevent other children from horrific and unimaginable abuse. It's because of the cooperative effort between all of the agencies that make up the Franklin County Internet Crimes Against Children Task Force and HSI, that predators are identified and brought to justice.”

Close was also ordered to forfeit all computer equipment and visual depictions of the child pornography that were seized from him at the time of the execution of the search warrant in this case. Close will be under court supervision for 20 years after he completes his prison term. U.S. Probation Office to install monitoring software on any computer he owns, uses or has access to during his period of supervised release. He will also be required to register as a sex offender anywhere he lives, works or goes to school.

This case was 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 Attorneys’ 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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO – A U.S. District Court jury here has convicted William David Taylor, Sr., 50, of Canal Winchester, Ohio of two counts of filing false federal income tax returns with the Internal Revenue Service (IRS).

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the verdict returned July 10 following a trial that began July 1 before U.S. District Judge Algenon L. Marbley.

Testimony presented during the trial showed that Taylor filed false federal income tax returns with the IRS for 2006 and 2007.  The 2006 income tax return showed total income in the amount of $51,967, and the 2007 income tax return showed total income in the amount of $33,272.  Evidence showed that the total income Taylor earned in 2006 and 2007 substantially exceeded the amounts he claimed.

During 2006 and 2007 Taylor operated a construction consulting business.  An important part of his business involved convincing landowners to engage him in development projects that would involve both investors as well as individuals who would purchase plots and receive construction loans to build houses.  Taylor served as the general contractor and, as such, established business bank accounts that he controlled in order to develop the properties and build the houses. 

Additionally, Taylor contracted with others who wished to retain him to build individual homes separate from the development projects.  Evidence presented during the trial showed that funds from those investors and other persons flowed into Taylor’s construction consulting business accounts and were frequently spent on personal items and activities such as vacations, private schools for Taylor’s children and significant renovations to his home.  Taylor did not complete any of the projects or houses, and failed to pay the money back to the investors and those persons who had trusted him to follow through on their home-building plans.  An IRS representative calculated that Taylor had failed to report on his federal income tax returns approximately $110,000 in income for 2006 and $189,000 for 2007.

Funds received and used personally as income must be reported as income on the tax returns of the recipients of that money. Filing a false federal income tax return with the IRS is punishable by up to three years in prison and a fine of up to $250,000. Judge Marbley will schedule a date for sentencing.

Stewart commended the investigation conducted by IRS Criminal Investigation, as well as Assistant U.S. Attorney Daniel Brown, who is representing the United States in the case.

###

CONTACT: Fred Alverson
Public Affairs Officer

DAYTON –Charles Edward Suttles, 56, of Dayton has been sentenced to 120 months in prison for viewing sexually explicit images of minor children while he was a patient at the Veterans Affairs Medical Center in Dayton. Suttles was also sentenced to be under court supervision for the rest of his life.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division announced the sentence handed down today by U.S. District Judge Timothy S. Black. 

According to court documents, Suttles was a resident of the VA Medical Center in Dayton in July 2010. VA Police, acting in response to a tip, found Suttles viewing child pornography on a computer in a computer lab set up for residents to use to search and apply for jobs. The officer seized a thumb drive that Suttles had plugged into the computer. A forensic analysis of the thumb drive revealed more than 500 images and more than a dozen videos of child pornography.

VA-OIG agents arrested Suttles in January 2013. He has been in custody since his arrest. Suttles pleaded guilty on March 28, 2013 to one count of possession of child pornography.

“Pursuing those who sexually exploit children is a top priority of all law enforcement particularly when it endangers our nation’s veterans and their families,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.

This case was 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/.

U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Dayton VA Medical Center Police who assisted with the investigation, and Assistant U.S. Attorney Benjamin Glassman, who represented the United States in the case.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS, OHIO – James E. Johnston, a/k/a “Monk,” 50, of Columbus was sentenced to 72 months in prison, five years of supervised release, a $1,000 fine, and ordered to forfeit three real estate properties located in Columbus for his role in distributing marijuana and cocaine in the Columbus, Ohio area.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, Kevin McDermott, Assistant Special Agent in Charge, DEA, and Columbus Police Chief Kim Jacobs announced the sentence handed down July 1 by Senior U.S. District Judge Peter C. Economus.

In December 2012, Johnston pleaded guilty to one count of conspiracy to possess with the intent to distribute and to distribute 1,000 kilograms or more of marijuana and five kilograms or more of cocaine, and to one count of money laundering.

According to court documents, in November 2007, the DEA, IRS, and Columbus Police began investigating a marijuana trafficking organization operating in the Columbus area. Their investigation revealed that multi-thousand pounds of marijuana were being transported from Arizona to the Columbus area.

Between the mid 2000’s and October 2008, Johnston was directly involved with this marijuana trafficking organization that used recreational vehicles, trailers, tractors trailers, and rental vehicles to transport marijuana and bulk currency to and from Arizona and Ohio. The organization utilized stash houses and other locations in central Ohio to receive and distribute large shipments of marijuana. In addition, between late 2000 and 2001 Johnston received more than five kilograms of cocaine from Arizona for distribution in the Columbus, Ohio area.

Also, between 2000 and 2008 Johnston used the proceeds and profits from the narcotics conspiracies to conduct numerous financial transactions in excess of $10,000, in which he invested in real estate and real estate renovations, and obtained loans from financial institutions in an effort to launder his narcotics proceeds and profits.

Johnston will forfeit the following real estate properties located in Columbus, Ohio at 1334-1336 West Broad Street, 52 North Rogers Avenue, and 300 Cypress Avenue.

“By following the money trail Special Agents of IRS, Criminal Investigation help to disrupt and dismantle major drug trafficking organizations that attempt to conceal the true source of their money from the government,” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation. “This sentencing is a direct result of the excellent partnership IRS, the U.S. Attorney’s Office, the DEA, and the Columbus Division of Police has in combating major drug trafficking organizations, which have such a negative impact on our community."

U.S. Attorney Stewart acknowledged the investigation by special agents and officers of IRS-Criminal Investigation, DEA, and the Columbus Division of Police, as well as Assistant United States Attorneys David DeVillers and Michael Hunter who represented the United States in this case.

# # #

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS –Todd L. Smith, 50, of Columbus was sentenced in U.S. District Court today to eight years of imprisonment, consisting of seven years in federal prison followed by one year on house arrest, for having illicit sexual relationships with students at the school where he was assigned as a resource officer for the Columbus Division of Police.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence imposed today by U.S. District Judge Algenon L. Marbley.

The FBI began investigating Smith in July 2012 and found that Smith had engaged in a “sexting” relationship with a 14-year old female student at the school. He told the student that he had a sex addiction and that she could help him by having sex with him. Between July 24, 2012 and the morning hours of July 25, 2012, Smith exchanged approximately 113 text messages with an undercover FBI agent posing as the victim.

“The juvenile told her parents about the relationship, and later, the juvenile expressed concerns to the FBI about what the police officer may do to her family as a result of the juvenile coming forward,” Assistant U.S. Attorneys Doug Squires and Michael Hunter wrote in a document filed with the court prior to sentencing.

On July 27, 2012, the FBI became aware of another 15-year old victim who had been coerced through similar text messages into having a sexual relationship with Smith. The FBI found that this relationship began in early 2012 and that they exchanged more than 6,000 text messages during the course of the relationship. 

FBI agents arrested Smith on July 26, 2012 and he has been in custody since his arrest. Smith pleaded guilty on January 17, 2013 to one count of coercion and enticement of minors for sexual activity. 

Smith must serve five years on supervised release following his prison term. He was also ordered to register for life as a sex offender with law enforcement agencies wherever he lives, works or is a student.

Stewart commended the FBI agents conducting the investigation, and Assistant U.S. Attorneys Doug Squires and Michael Hunter, who represented the United States in the case.

CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI – A federal grand jury has charged four people with health care fraud, alleging that they improperly charged government insurance programs for medically unnecessary procedures in connection with two medical clinics they owned and operated in Coal Grove, Ohio.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Bret Flinn, Resident Agent in Charge, Defense Criminal Investigation Service, Antoinette V. Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, Lawrence County Sheriff Jeff Lawless and Coal Grove Police Chief Eric Spurlock announced the charges in a four-count indictment unsealed today after agents arrested three of the defendants.

The indictment alleges that Peter Tsai, 44, owner of Advanced Family Medical Center, his father and mother, Tahsiung Tsai, 72, and Ruey Tsai, 66, who owned Watkins-Tsai Imaging, and Peter Tsai’s cousin, Wei Lih Sheih, aka “Wendy”, 41, who worked for both clinics, conspired to defraud health care benefit programs including Medicaid, Medicare and Tri-Care.

Agents arrested Peter Tsai, Tahsiung Tsai and Ruey Tsai this morning. They were taken to Cincinnati for their initial appearance before U.S. Magistrate Judge Karen Litkovitz and were released on recognizance bond after they surrendered their passports. Wei Lih Sheih also had her initial appearance and was released on a recognizance bond.

“The grand jury has charged them with performing diagnostic CT scans that were medically unnecessary, including multiple scans of the same body part for the same patient weeks apart,” U.S. Attorney Stewart said. “They are also charged with performing and billing for CT scans for medically unnecessary injections of an osteoarthritis product, Synvisc, in knees, including injection into young adults without any proper diagnosis of osteoarthritis.”

The defendants are also accused of performing and billing for CT scans related to medically unnecessary injections for purported piriformis syndrome, a problem affecting muscles in the back, and ignored and/or stopped documenting statements and complaints from patients that the injections were not working or were not wanted. The indictment also accuses them of illegally importing misbranded Synvisc from other countries including Canada and Turkey and billing government insurance programs for the injections and transferring money into an account in a Canadian financial institution in order to buy the product.

“We take allegations of health care fraud very seriously,” said Ohio Attorney General Mike DeWine. “We will not tolerate those who seek to overbill and perform unnecessary tests on patients.”
All four defendants are charged with conspiracy, which is punishable by a sentence ranging from probation to ten years in prison. Peter Tsai, Tahsiung Tsai and Ruey Tsai are also charged with health care fraud, a crime also punishable by up to ten years in prison. Peter Tsai is also charged with smuggling, a crime punishable by up to 30 years in prison and money laundering which is punishable by up to 20 years in prison.

The indictment seeks forfeiture of all proceeds they received as a result of the conspiracy.

Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorney Timothy Mangan, who is representing the United States in the case.

Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477.  To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.

An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. 

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS -- A federal grand jury has indicted Haider Zafar, 35, formerly of Dublin, Ohio, in connection with a $10 million fraud scheme involving false representations about investments in Pakistani real estate.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office announced the indictment that was returned yesterday.

The indictment charges Zafar, who now lives in south Florida, with 118 counts of wire fraud, 13 counts of money laundering, one count of filing a false federal income tax return, and three counts of willfully failing to file a federal income tax return with the IRS.

The indictment alleges that Zafar made representations that his mother’s brother was a high ranking official in the Pakistani government, and that he and members of his family in Pakistan had knowledge of real estate that the government of Pakistan planned to acquire from private citizen-owners for purposes of building infrastructure and military facilities.  Zafar stated he could purchase the real estate and sell it to the government of Pakistan for a significant profit.  Individuals could invest money towards the purchase of the real estate, and would share the profits from such transactions.

Zafar allegedly instructed an individual to wire transfer money to an Ohio bank account in his name for the purchase real estate.

Zafar allegedly told that individual that he would receive the return of his money and a profit by wire transfer.  Zafar subsequently then told this individual that the proceeds of the Pakistani real estate transaction totaled approximately $90,000,000, that this money was being held in Pakistan, and that the proceeds could not be transferred by wire to a bank account in the United States because Zafar was prohibited from transferring funds to the United States.

Between January 4, 2008 and February 25, 2010, Zafar allegedly caused this individual and two businesses owned by this individual and/or relatives and associates of this individual to wire transfer $10,115,000 to Zafar.

Instead of buying real estate in Pakistan, Zafar allegedly used the funds from the fraud scheme to buy multiple luxury automobiles, including a 2009 Mercedes-Benz roadster, three 2009 Mercedes-Benz sedans, a 2009 Aston-Martin DB9 convertible, a 2009 Maserati Gran Turismo, a 2009 Aston-Martin Vantage roadster, a 2010 Lamborghini LP560 Spyder, a 2009 Rolls Royce Phantom convertible, two Rolex watches, a Cartier watch, a Bulgari watch band, and several pieces of jewelry, including a loose diamond and two rings, among other items.

In addition, Zafar allegedly filed a fraudulent 2007 federal income tax return with the IRS which reported taxable income of zero, whereas Zafar allegedly omitted reporting approximately $221,500 in taxable income. Also, for each of the 2008 through 2010 income tax years, Zafar willfully failed to file a federal income tax return with the IRS.  Zafar allegedly received $4,976,000 in gross income in 2008, $4,519,000 in gross income in 2009 and $620,000 in gross income in 2010.

IRS Special Agents arrested Zafar at Port Columbus Airport on May 25. He has been in custody since his arrest.

An indictment is merely an accusation.  All defendants are presumed innocent until and unless proven guilty. 

Wire fraud is punishable by up to 20 years in prison and a fine of $250,000.  Money laundering is punishable by up to 10 years in prison and a fine of $250,000.  Filing a false income tax return with the IRS is punishable by up to three years in prison and a fine of $250,000.  Willfully failing to file an income tax return with the IRS is punishable by up to one year in prison and a fine of $25,000.

The indictment also contains a forfeiture allegation which calls for a money judgment in the amount of $10,115,000 and the forfeiture of numerous pieces of jewelry.

"Real estate investment fraud is like a 'house of cards.'  The underlying structure can fall apart at any time and leave many investors in financial ruin," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation.

U.S. Attorney Stewart acknowledged the investigation by special agents of IRS-Criminal Investigation and the assistance of the FBI office in Miami, Florida as well as Assistant United States Attorney Dale Williams who is representing the United States in this case.

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CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI – L. Gino Boggia, 63, of Quebec, Canada pleaded guilty in U.S. District Court to engaging in a scheme to defraud a local bank in connection with dormant bank account funds. 

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI) announced the plea entered today before Chief U.S. District Judge Susan Dlott.

According to court documents, Boggia is a disbarred Canadian attorney who engaged in two related fraud schemes in the Southern District of Ohio to attempt to fraudulently acquire funds of dormant, unclaimed bank accounts that have been escheated (turned over) to the state of Ohio by financial institutions.

In the first scheme in May 2003, Boggiafalsely claimed to represent the account holder who was hospital-bound and in urgent need of surgery with life-threatening injuries. Further investigation found that the client Boggia claimed to represent had died 20 years earlier. In the second scheme Boggiafalsely claimed to represent a creditor of the account holder who was seeking to obtain a judgment against the account holder.

Like the first scheme, the attempted fraud was discovered before any funds were paid out.  The amount of dormant account funds Boggia fraudulently attempted to obtain in this second scheme, which included the amount the dormant funds plus claimed accrued interest over several years, totaled $1,310, 670.06.  

Boggia was indicted in Cincinnati in 2007. He was extradited from Canada earlier this year following completion of a sentence there on similar charges.

Boggia pleaded guilty to one count of bank fraud. The plea agreement includes an agreed-to sentence of 60 months incarceration. The agreed sentence also proposes to resolve a pending supervised release violation arising out of Boggia’s prior federal conviction in 2001 for a similar fraud in the Southern District of California. Boggia also agrees to pay restitution of $247,159.25 representing the loss caused by Boggia’s conduct in a similar scheme in Pennsylvania. The court will review the plea agreement before making a decision on whether or not to accept the terms.

U.S. Attorney Stewart commended the investigation by the FBI and Senior Litigation Counsel Anne Porter, who is representing the United States in the case.

 

CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI – Sylvia Odia Thomas, 40, formerly of West Chester, Ohio was sentenced to 30 months in prison, three years of supervised release, and ordered to pay $313,021 in restitution to lenders and $95,422.14 to the IRS for crimes she committed as part of a mortgage fraud scheme.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced  the sentence handed down today by Senior U.S. District Judge Herman J. Weber.

Thomas pleaded guilty on November 6, 2012 to one count of mail fraud and one count of filing false income tax returns. She committed both crimes in connection with her business as a mortgage broker. “She habitually falsified documentation for loan applications for her clients and failed to report her correct income to the IRS,” Assistant U.S. Attorney Tim Mangan wrote in a memorandum filed with the court prior to sentencing. 

Thomas willfully filed false federal income tax returns with the IRS for the 2006 through 2009 income tax years.  These federal income tax returns did not include substantial amounts of additional income that was paid to Thomas in the form of broker closing and processing fees that were obtained from brokering and closing client loans.  In total, Thomas underreported her gross receipts by $312,882 for the 2006 through 2009 income tax years, resulting in a tax loss of $95,422.14. The Court determined the amount of loss for her mortgage fraud was $313,021. 

Thomas operated a home renovation company and later started her own mortgage brokerage business. Eventually, she began writing false income and employment information on loan applications in order to get her clients approved. This practice also involved fabricating false supporting documents that were sent to the lenders. She also engaged in creating false down payments for her clients by making cashier’s checks to look like earnest money from the clients. When agents executed a search warrant at her home, they found numerous cut-and-paste documents related to this fraudulent scheme.

Antonio Weathers, 41, of Cincinnati, Ohio has pleaded guilty to one count of mail fraud and to one count of money laundering in connection with the same mortgage fraud scheme.  The guilty plea was entered before Chief U.S. District Judge Susan J. Dlott on April 8, 2013.  Weathers faces a maximum prison sentence of 20 years and a fine of up to $250,000.  A date for his sentencing has not been set.

According to court documents, Weathers formed a real estate business in which he arranged for the purchase and resale of mostly low income properties.  Weathers transferred $42,532.43 in mail fraud proceeds from one bank account to another bank account in the name of Antonio Weathers, d/b/a, KI Enterprises.

“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, and leave lenders burdened with bad loans,” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.  “Criminal Investigation remains committed to pursuing financial investigations into such crimes.” 

U.S. Attorney Stewart commended Assistant United States Attorney Mangan who represented the U.S. in the case, and the cooperative investigation conducted by IRS Special Agents and Postal Inspectors.

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Ryan D. Kasler, 31, of Mt. Pleasant, Ohio was sentenced to 15 years in prison for downloading images of child pornography from the internet.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service and William A. Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the sentence imposed today by Senior U.S. District Judge James Graham.   

Kasler pleaded guilty on March 14, 2013 to one count of illegal receipt of child pornography. According to testimony presented during the plea hearing, Kasler was identified during an investigation by Postal Inspectors into subjects who received child pornography through the U.S. Mail. Investigation of a company that was suspected of distributing child pornography indicated that Kasler had purchases 17 separate videos or photo collections of child pornography, which he had downloaded or received through the mail.

Investigators executed a search warrant at Kasler’s home in December 2012 and seized videos, a computer and storage media containing child pornography. Agents arrested Kasler, who has been in custody since his arrest.

This case was 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 cooperative investigation by Postal Inspectors and HSI agents, as well as Assistant U.S. Attorney Heather Hill, who is representing the United States in this case.

 

CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI –Robert R. Sacco, 62, the owner and chairman of the board of Dayton-based Paysource, was sentenced to 78 months in prison in a conspiracy and financial crimes scheme involving withholding money to pay federal employment taxes from employees’ paychecks and keeping the money instead of paying it to the IRS.  In addition, Sacco must pay a $26,729,098.79 money judgment.

Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS) announced the sentence handed down today by U.S. District Judge Michael R. Barrett.

Sacco previously pleaded guilty on October 26, 2012 to one count each of conspiracy to defraud the United States by impeding the Internal Revenue Service, money laundering, and tax evasion.

According to court documents, Sacco and others conspired to avoid the payment of federal employment taxes owed by Paysource for 2007 through 2009 and concealed from the IRS the legitimate tax liabilities the company owed. Sacco directed co-conspirators to prepare fraudulent IRS forms claiming that the wages paid by the company and the resulting tax liabilities were significantly lower than the wages the company actually paid.

Sacco, lived in Huber Heights prior to moving to Orlando in 2010.

Paysource was a Dayton-based professional employer organization. Paysource provided services that enabled business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation and other strategic services. It did this by hiring a client company’s employees, thus becoming their employer of record for tax and insurance purposes.  This practice is known as co-employment.

After serving his prison term, Sacco must serve three years of supervised release.  He was also ordered to pay $26,729,098.79 in restitution, jointly and severally with Charles Painter who was also charged in the scheme, to the Internal Revenue Service.

Stewart commended the investigation by IRS Criminal Investigation agents, and Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.

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CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – A yearlong investigation into an alleged heroin trafficking organization in central Ohio has resulted in the arrests of 16 people, the seizure of more than 11 kilograms of heroin, three firearms, and more than $115,000 in cash.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration, Franklin County Sheriff Zach Scott and Columbus Police Chief Kim Jacobs announced the arrests today.

Investigators made the arrests between June 10 and today based on federal complaints. Each defendant has been charged with conspiracy to possess with intent to distribute heroin, a crime punishable by at least five and up to 40 years in prison. All defendants have appeared before a U.S. Magistrate Judge who ordered them held without bond until trial. Eight search warrants have also been executed since June 10 as part of the investigation.

U.S. Attorney Stewart said the investigation by DEA, the Franklin County Sheriff’s Office, Columbus Police and the DEA Southwest Border Task Force is continuing.

Stewart commended Assistant U.S. Attorneys Michael Hunter and Kevin Kelley who are representing the United States in this case.

Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.

A list of those charged is below.

DEFENDANTS ARRESTED IN JUNE 2013 HEROIN INVESTIGATION

 

Name                                                              AGE               ADDRESS 
                                          
Alonso Ernesto TORRES MONTANO         25                    Grove City
Luis Alberto TORRES MONTANO              30                    Grove City
Santiago Manuel AZDEITIA                         21                    Columbus
Ivon Itzel TRUJILLO CERVANTES           30                    Grove City
Johana Yazmin DIAZ LOPEZ                       25                    Columbus
Jose Enrique ESPARZA CASTILLO            24                    Columbus
Victor GARCIA, aka “EL NEGRO”             25                    Columbus
Francisco Fuentes ESTRADA, aka “EL GALLO”        34        Columbus
Primitivo BUENROSTO, aka “JOAQUIN”  60                   Columbus
Jose Luis DIAZ                                              39                    Columbus
Janeth ARVIZU VALDERRAMA               26                    Columbus
Andy Abel DIAZ LOPEZ                             19                    Columbus
Juan Carlos PEREZ LEON, aka “CARLOS”            24                   Fairfield
Juan M. BERMUDEZ DELGADO               28                    Columbus
Oscar JURADO                                              23                    Columbus
Lonnie GARCIA GOMEZ                            19                    Columbus

CONTACT: Fred Alverson
Public Affairs Officer

COLUMBUS – Patricia Hodges, 66, of Marietta, Ohio has been ordered to repay $141,962 in Social Security benefits she collected on behalf of her dead mother, serve 30 days in prison and six months of home confinement as part of a three-year period of court supervision.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the sentence imposed today by Senior U.S. District Judge George C. Smith.

Hodges pleaded guilty on February 27, 2013 to one count of theft of government money. According to testimony at the plea hearing by an agent with the Social Security Inspector General, a Social Security Administration official interviewed Hodges at her Marietta home in November 2011. Hodges’ mother would have been 103 at the time and the official wanted proof that Hodges’ mother was still alive. Hodges claimed her mother was on a cruise and planned to live with a niece in New York after the cruise.

Further investigation by the Social Security Administration and Marietta Police concluded that Hodges’ mother had died in 1997 and that Hodges had buried her mother’s body in the back yard of a house in Lake Worth, Florida where they had lived. Florida law enforcement investigators recovered the skeletal remains of Hodges’ mother.

Hodges admitted that she concealed her mother’s death in order to collect $141,962 in Social Security benefits she was not entitled to receive between 1997 and October 2011.

Individuals who want to report suspected cases of fraud can contact the Social Security Office of Inspector General’s Fraud Hotline, 1-800-269-0271, or complete an online fraud reporting form at http://oig.ssa.gov/report. 

Stewart commended the investigation by the Social Security Administration’s Office of Inspector General and the Marietta Police, and Assistant U.S. Attorney Dale E. Williams Jr., who represented the United States in the case.

 

CONTACT: Fred Alverson
Public Affairs Officer

CINCINNATI –Anthony Marquette Phillips, 44, of Fort Wayne, Indiana was sentenced to 235 months in prison for his role in the armed robbery of a bank in Springboro on April 27, 2012 plus an additional 120 months for using and discharging a firearm during the course of the robbery.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigaiton, Cincinnati (FBI), and Springboro Police Chief Jeffrey Kruithoff announced the sentence handed down June 12 by U.S. District Judge Michael Barrett.

According to court documents, Phillips and Anton Jevon Alexander, 36, of Indianapolis, Indiana approached the bank manager as he was entering the building’s rear door at 8:30 in the morning and pushed him inside. Springboro police officers received a 911 call and arrived at the bank around 8:40. The would-be robbers attempted to flee when they heard police arriving. Phillips fired a shot at the manager. The manager escaped safely. The men remained in the bank until approximately 1:30 Friday afternoon when they emerged and were taken into custody.

Each defendant pleaded guilty on October 12, 2012. Alexander was sentenced on May 7, 2013 to 15 years in prison.

U.S. Attorney Stewart commended the prompt response and investigation by Springboro police and FBI agents, as well as District Criminal Chief Kenneth L. Parker and Special Assistant U.S. Attorney Greg Stephens with Butler County Prosecutor Mike Gmoser’s Office, who represented the United States in the case. Stewart also commended the cooperative response and investigation by the Warren County Sheriff’s Office -- Tactical Response Unit, Hostage Negotiation Team, the police departments in Miami Township, Franklin, Lebanon, Dayton and Clearcreek Township, the Clearcreek Township Fire Department, and the Ohio State Highway Patrol.