Southern Illinois Women Plead Guilty in Fraud Case

Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jamie Lynn Erwin, 32, of Glen Carbon, Illinois; and Shadwonna Marie Bausily, 22, of Alton, Illinois, each pleaded guilty to one count of conspiracy to commit access device fraud in the United States District Court for the Southern District of Illinois, in East St. Louis. Bausily pleaded guilty on June 1, 2012, and Erwin pleaded guilty on June 4, 2012.

Shadwonna Bausily admitted that in 2010, while she was working as a hostess at Amarillo Tex’s Steakhouse and Saloon, in Alton, Illinois, a man with whom she had a romantic relationship, Miltiano Johnson, taught her to use a credit card “skimmer,” a small device capable of capturing credit card numbers and account information by swiping a credit card through a card-reading portion of the device. Johnson recruited Bausily to help him gather credit card information from customers of Amarillo Tex’s.

Jamie Erwin admitted that she was working as a waitress at the Amarillo Tex’s when Bausily approached her about helping Johnson and Bausily skim credit card information. Johnson and Bausily offered to pay Erwin to run customers’ credit cards through the skimmer when she took payments from them and then to return the skimmer full of credit card information to Johnson.

After Johnson received the skimmer back from Bausily and Erwin, he collected the stored information from the device. He then transferred the account information onto physical credit cards, generally using prepaid credit cards. Miltiano Johnson, along with his wife, Carlene Johnson, and friend, Michael Montgomery, would use the cards encoded with victim credit card information to purchase items at stores in the St. Louis metro area.

Miltiano Johnson, Carlene Johnson, and Michael Montgomery each pleaded guilty to their roles in the conspiracy and have been sentenced by the United States District Court for the Southern District of Illinois.

At their sentencing hearings, both currently set for September 17, 2012, Erwin and Bausily each face up to 10 years in prison, a fine of up to $250,000, up to three years of supervised release, and a $100 special assessment.

This case was investigated by the Federal Bureau of Investigation’s Cybercrimes Task Force, and in particular, by Detective David Vucich of the Madison County Sheriff’s Department. The case is being prosecuted by Special Assistant United States Attorney Katherine L. Lewis.

Wood River Man Sentenced for Failure to Reigster as a Sex Offender

A Wood River man, John David Allen, 22, was sentenced to the maximum term of 10 years’ imprisonment in United States District Court, East St. Louis for failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Allen was also sentenced to five years’ supervised release to follow imprisonment, a $100 fine, and a $100 special assessment. There is no parole in the federal system. Allen has been in custody since his arrest on September 21, 2011.

According to court documents, on December 20, 2010, Allen was convicted of a sex crime in Madison County, Illinois, which required him to register as a sex offender. On August 29, 2011, he signed and dated an Illinois Sex Offender Registration Act Registration Form explaining the registration requirements and acknowledging his understanding of them. That form also clearly notified Allen that he must register again on or before September 5, 2011. Allen failed to register with the Madison County Sheriff’s Department or any other law enforcement agency on September 5, 2011 or thereafter. A warrant for Allen’s arrest was issued by a Madison County Court on September 19, 2011. On September 21, 2011, Allen was located and arrested in the state of Colorado, where he had traveled via automobile from Madison County, Illinois with a 15-year-old girl, who had been reported missing on September 14, 2011.

The case was investigated by the United States Marshals Service and the FBI. The prosecution of the case was handled by Assistant United States Attorney Kit Morrissey.

Granite City Man Sentenced for Child Pornography Offenses

“funson999” to Serve Over Eight Years in Prison

Michael Wayne Bailey, 35, of Granite City, Illinois, was sentenced on March 12, 2012 to a total of 97 months’ imprisonment on a two-count indictment charging him with possession of child pornography (count one) and receipt of child pornography (count two), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The sentence consists of 97 months’ imprisonment on counts one and two, to run concurrently. Bailey was also ordered to serve 20 years’ of supervised release on counts one and two, to run concurrently; fined $300 on each count, for a total fine of $600; and ordered to pay a $200 special assessment. Bailey pled guilty to the two-count indictment on September 23, 2011 and has been detained since his arraignment on July 26, 2011.

The violation referenced in count one of the indictment occurred on March 17, 2011, when officers executing a state search warrant seized eight computers and numerous other media devices from the residence which Bailey shared with other individuals. While analyzing the computers, officers located a screen name, “funson999,” which contained numerous chats discussing the molestation of children and trading images of minors. Officers were able to track the funson999 account to Bailey.

Bailey admitted creating the funson999 account, stating that he would save images of minors engaged in sexually explicit conduct to his hard drive and then delete them. Bailey stated he received approximately 10 images of minors engaged in sexually explicit conduct via the Internet. Bailey also admitted engaging in the chats recovered from his computer. Finally, Bailey stated that he deleted e-mails and other information associated to the funson999 account after the initial search warrant was executed.

The violation referenced in count two of the indictment occurred on October 2, 2009, when Bailey downloaded an image of a minor engaged in sexually explicit conduct.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the Madison County Sheriff’s Department and the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, and was brought in cooperation with Madison County State’s Attorney Tom Gibbons’ office. The case was assigned to Assistant United States Attorney Angela Scott.

Granite City Man Charged with Attempted Extortion by Means of Threatening Physical Violence

The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Brett L. Nash, 45, of Granite City, was arraigned in federal district court in East St. Louis yesterday on charges that he attempted to extort a targeted individual by threatening physical violence. The charges were alleged in a criminal complaint filed on January 24, 2012.

The criminal complaint charges Nash with attempted extortion, by use of threats of violence, under the Hobbs Act. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine, and up to five years of supervised release.

The complaint alleges that on January 9, 2012, Nash tried to recruit an acquaintance’s assistance in carrying out an extortion scheme aimed at obtaining money from a targeted individual through threats of violence. After Nash obtained the money, it is alleged that Nash planned on killing the targeted individual in a manner which would look like an accident. The acquaintance reported the scheme to the Federal Bureau of Investigation and remained in contact with Nash in an undercover capacity.

The complaint alleges that over the course of the next two weeks, Nash had multiple meetings with the undercover acquaintance for the specific purpose of planning out the extortion scheme. Nash’s plan focused on the seizure of the targeted individual and the use of threats and force to get the individual to withdraw large amounts of money from his personal bank account and from a safe in the individual’s home. Nash planned on splitting the proceeds of the extortion with his undercover acquaintance. It is further alleged that Nash gathered many of the items needed for the operation including a head covering mask, a set of handcuffs and a CO2 Gun.

It is alleged that on January 23, 2012, the date of Nash’s arrest, he and his undercover acquaintance made a dry run to the targeted individual’s house to scout the location, for the planned operation. The complaint alleges that Nash had planned to execute his scheme later on that very evening.

The case was investigated by agents of the Federal Bureau of Investigation and officers of the Madison County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Stephen B. Clark and Special Assistant U.S. Attorney Christopher C. Heery.

A criminal complaint is a charge against the defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.

St. Louis Man Sentenced for Identity Theft

A St. Louis, Missouri man was sentenced on Friday, July 8, 2011, to 57 months in federal prison as a result of his convictions for access device fraud and aggravated identity theft. Miltiano Trevaris Johnson, 31, was further placed on a three-year term of supervised release following his imprisonment, and given a $200 special assessment. He was also ordered to pay restitution to the 19 victims of his actions. These convictions resulted from Johnson’s entry of a guilty plea to the charges on June 10, 2011.

“This type of offense is nothing more than blatant robbery.” said United States Attorney Wigginton. “While the thief might not use a weapon, his actions are no less devastating to the victims. I applaud such a lengthy sentence in a case where some might view the criminal actions as only the non-violent theft of funds.”

The facts of the case, as revealed during Johnson’s guilty plea and sentencing hearings, were that sometime in late January or early February, 2010, Miltiano Johnson met a restaurant hostess on a social telephone chat line. Eventually the two began dating. The hostess worked at Amarillo Tex’s Steak House in Alton, Illinois.

After the hostess and Johnson had been dating for a few weeks, the hostess told Johnson where she worked. Johnson said he could help her with money if she would use a credit card skimmer box to collect credit card information from customers at the restaurant. He showed her how to use the skimmer box.

After learning about the box, the hostess heard a waitress at the steak house complaining about money. The hostess told the waitress that she could make more money if she would skim credit cards for Johnson. Later that day, the hostess called Johnson and Johnson brought the skimmer box to the restaurant.

After the waitress skimmed customers’ credit card information, Johnson went back to the restaurant to pick up the box. He stored the card numbers, and then he gave the waitress the skimmer again to get more customers’ information. Johnson, his wife and his friend then used the victims’ credit card numbers at various stores in Missouri and in Illinois to purchase items.

This case was brought by the Federal Bureau of Investigations Cybercrimes Task Force, and in particular, by Detective David Vucich of the Madison County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Nicole E. Gorovsky.

Hartford Man Charged with Enticement of a Minor and Receipt of Child Pornography

On February 24, 2011, Mark A. Reynolds, 49, of Hartford, Illinois, was indicted by a federal grand jury sitting in East St. Louis, Illinois, in a two-count indictment charging him, in count one, with enticement of a minor, and, in count two, with receipt of child pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The alleged violations took place on January 13, 2011, in Madison County, Illinois.

Trial has been set for May 10, 2011. If convicted of rnticement of a minor, Reynolds faces a term of imprisonment of not less than 10 years up to life, a $250,000 fine, and a term of supervised release of five years to life. In addition, because Reynolds is a registered sex offender, he faces a mandatory minimum sentence of 10 years’ imprisonment to be served consecutively to the sentence he receives on count one of the indictment. If convicted of receipt of child pornography, Reynolds faces a term of imprisonment of not less than 15 years up to 40 years’ imprisonment, a $250,000 fine, and not less than five years to a lifetime term of supervised release.

An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the Madison County Sheriff’s Department and the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case is assigned to Assistant United States Attorney Angela Scott.

Madison County Man Sentenced to 30 Years for Distribution of Child Pornography and Sexual Abuse History

LEXINGTON, KY—A federal judge cited a Richmond, Kentucky man's lengthy history of sexual abuse of children and his distribution of thousands of child pornography images as reasons for sentencing him to 30 years in prison. Kenneth Rowe, 61, was sentenced on two counts of distribution of child pornography.

U.S. Chief District Court Judge Jennifer B. Coffman also stated that the public needed protection from Rowe.

"I will not take the chance and put one more child at risk," said Judge Coffman. "If even one more child is abused then I haven't done my job."

The facts at sentencing demonstrated that Rowe not only distributed child pornography but also sexually and physically abused his stepson and his stepgrandson numerous times over a seven-year period. Rowe was previously convicted for abusing the same 10-year-old grandson.

Rowe lived in Madison County and operated a dental lab in Lexington with his stepson. He admitted that between October and November of 2009 he downloaded and distributed child pornography.

A forensic examination of Rowe's computer at his dental studio earlier this year revealed over 5,000 photos and more than 20 videos containing child pornography. Rowe e-mailed some of those images to another individual.

Some of the child pornography videos featured minors as young as 3 years old engaged in sexually explicit conduct with adults.

An FBI agent reviewed chats between Rowe and an undercover officer in New Hampshire and found that Rowe told the officer that he had engaged in sexual encounters with a 13-year-old and the 12-year-old brother of one of his previous girlfriends. According to the written plea agreement, the investigation started when a forensic examination of another suspect's computer, seized in Virginia by FBI agents in 2008, revealed numerous videos and photographs of child pornography e-mailed from Rowe. During the FBI investigation in Kentucky, it was determined that Rowe had uploaded additional child pornography, which was discovered after a tip was relayed to the National Center for Missing and Exploited Children.

Further investigation also established that Rowe chatted online with an undercover officer between October of 2009 and January of 2010 about Rowe's sexual interest in children. During the communication between Rowe and the undercover officer, Rowe e-mailed the officer videos of child pornography.

Federal search warrants were executed on January 10, 2010 at Rowe's dental studio in Lexington and his residence in Madison County. According to court pleadings, Rowe was convicted in 1988 in Nevada for lewdness with a minor.

Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Elizabeth A. Fries, Special Agent in Charge FBI Louisville Division; and Rodney Brewer, Commissioner, Kentucky State Police, jointly made the announcement today.

The investigation was conducted by the FBI, Kentucky State Police, and the Madison County Sheriff's Department.

This case was brought as part of the Eastern District of Kentucky's efforts pursuant to Project Safe Childhood, a Department of Justice initiative dedicated to protecting children from online exploitation and abuse.