Northern District of Iowa
Press releases recorded for this federal judicial district.
NGL Crude Logistics LLC Agrees to Pay $25 Million Civil Penalty and to Retire $10 Million in Renewable Fuel Production Credits Under Settlement with United StatesRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with NGL Crude Logistics, LLC that requires the company to retire 36 million renewable fuel credits and pay a $25 million civil penalty under the settlement to resolve violations of the Renewable Fuel Standard (RFS) program. The cost of the RIN retirement is approximately $10 million.
The Department of Justice and EPA alleged that NGL entered into a series of transactions with Western Dubuque Biodiesel, LLC in 2011 that resulted in the generation of an extra set of renewable fuel credits for approximately 24 million gallons of biodiesel. NGL’s scheme generated approximately 36 million additional credits, known as Renewable Identification Numbers or RINs. RINs are created when a company produces qualifying renewable fuel and can be traded or sold to refineries and importers to use for compliance with renewable fuel production requirements. On July 3, 2018, the United States District Court for the Northern District of Iowa found NGL liable for: (1) failing to retire RINs when it designated and sold biodiesel to Western Dubuque as “feedstock” for the production of biodiesel, (2) causing Western Dubuque to generate invalid RINs and commit other prohibited acts under the RFS program, and (3) transferring approximately 36 million invalid RINs to other entities.
“Enforcement actions such as the one we announce today are essential to ensuring the integrity of government programs,” said Principal Deputy Associate Attorney General Jesse Panuccio. “Fraud in the RFS market will not be tolerated. I applaud the work of the EPA and DOJ enforcement team who achieved today’s excellent result for the taxpayers.”
“A strong enforcement program is essential to maintaining the integrity of the RIN market,” said Assistant Administrator of the Office of Enforcement and Compliance Assurance (OECA) Susan Bodine. “Through this settlement EPA and DOJ are holding NGL accountable for its violations of the RFS program.”
“The Renewable Fuel Standards program is important to Iowa’s agricultural community,” said U.S. Attorney for the Northern District of Iowa Peter Deegan. “Our office is committed to protecting the integrity of the Renewable Fuel Standards program and ensuring a level playing field for Iowa businesses.”
The United States’ complaint alleged that in 2011, NGL purchased millions of gallons of biodiesel on the open market, and that approximately 36 million RINs had been assigned to the biodiesel. NGL sold most of the RINs to other entities. NGL then sold the biodiesel to Western Dubuque, but designated it as a “feedstock.” Western Dubuque reprocessed the biodiesel provided by NGL and generated a second set of RINs for the same fuel. Western Dubuque sold the reprocessed biodiesel and the second set of RINs back to NGL. NGL then sold most of these RINs to other entities. Western Dubuque resolved its alleged violations of the RFS program in a 2016 settlement with the United States.
EPA discovered the violations through a tip from RFS program participants, an inspection, and extensive investigation into the NGL transactions.
EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The RFS program was created under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007.
NGL is a midstream energy provider headquartered in Tulsa, Oklahoma that transports crude oil, and markets and supplies refined products, natural gas liquids, and other products. NGL was known as Gavilon, LLC at the time of the violations.
The proposed settlement, lodged today in the U.S. District Court for the Northern District of Iowa, is subject to a 30-day public comment period and final court approval. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
For more information on the settlement and for information on how to submit a comment, visit www.epa.gov/enforcement/ngl-crude-logistics-llc-clean-air-act-settlement.
Former Sioux City Council Member Charged with Environmental CrimesRead the Press Release
Aaron Rochester, 44, from Sioux City, Iowa, has been charged with one count of unlawful storage of hazardous waste and one charge of transportation of hazardous waste. The charges are contained in an Indictment filed on July 25, 2018, in United States District Court in Sioux City.
The Indictment alleges that, beginning on or about June 2015 through about July 2018, Rochester, as owner and operator of Recycletronics, knowingly and unlawfully, stored and transported hazardous waste, namely CRTs (cathode ray tubes) and leaded glass from televisions and computers at various facilities in and around Sioux City Iowa.
If convicted, Rochester faces a possible maximum sentence of five years’ imprisonment, a maximum fine of up to $50,000 for each day of the violation, and three years of supervised release following any imprisonment.
Rochester appeared today, September 25, 2018, in federal court in Sioux City and was released on bond with terms of supervision with US Probation. Rochester’s next appearance for trial is scheduled for November 5, 2018. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the United States Environmental Protection Agency (EPA). EPA Special Agent in Charge Jeffrey Martinez stated, “EPA’s Criminal Investigation Division will continue to serve our communities by aggressively investigating and seeking prosecution of those whose conduct violates laws governing the storage of hazardous waste.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4073. Follow us on Twitter @USAO_NDIA.
Westside Man Sentenced to Federal Prison for Meth Conspiracy and Possessing a Firearm to Further the ConspiracyRead the Press Release
A man who conspired to distribute over 100 pounds of methamphetamine and possessed a GSG, MP5, .22-caliber firearm to further the conspiracy was sentenced today to 26 years in federal prison.
Robert “Bobby” Whitenack, 37, from Westside, Iowa, received the prison term after an April 5, 2018, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possession of a firearm during and in furtherance of a drug trafficking crime.
At sentencing, the government presented evidence that showed Whitenack distributed approximately 100 pounds of methamphetamine from January 2014 through May 2017. During the conspiracy, Whitenack recruited at least five individuals to pick up pound-quantities of methamphetamine from Denison, Iowa, and Omaha, Nebraska, for distribution. Whitenack received or expected to receive compensation for every pound that his subordinates sold. Whitenack handled drug proceeds ranging from $20,000 to $63,000 at a time from his subordinates before sending most of the money to the source in Mexico or associates of the source. In February 2017, Whitenack used a GSG, MP5, .22-caliber firearm and pistol-whipped a cooperator in the head, causing a deep gash in the victim’s forehead.
The government also presented evidence that, on May 30, 2017, Whitenack engaged in a 4.5-hour standoff with law enforcement and threatened to commit “suicide by cop.” After officers deployed multiple canisters of tear gas, Whitenack ultimately emerged from his residence with what appeared to be a gun in his right hand wrapped in a blanket while waving the middle finger on his left hand. Unbeknownst to Whitenack, two members of the tactical team had entered the residence from the upstairs, allowing them to tase Whitenack from behind before ultimately securing his arrest.
Whitenack was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Whitenack was sentenced to 312 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Whitenack is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ajay J. Alexander and investigated by was investigated by the Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, Crawford County Sheriff’s Office, Denison Police Department, Carroll County Sheriff’s Office, Carroll Police Department, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3020-LTS.
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Tipton Man Sentenced to 50 Years in Federal Prison for Producing Child PornographyRead the Press Release
A man who produced child pornography involving a prepubescent child and traded child pornography with others was sentenced on September 19, 2018, to 50 years in federal prison.
Christian Hansen, age 40, of Tipton, Iowa, received the sentence after a March 23, 2018, jury verdict finding him guilty of one count of sexual exploitation of a child, one count of sexually exploiting a child while being required to register as a sex offender, one count of distribution of child pornography, one count of receipt of child pornography, and five counts of possession of child pornography.
The evidence at trial showed that in July 2017, Hansen took photos of a prepubescent child’s genital area and e-mailed the photos to others. Hansen also traded child pornography, including the child pornography he produced, with others and possessed child pornography on multiple electronic devices. At the time of these offenses, Hansen was required to register as a sex offender based on his 2011 Nebraska convictions for three counts of possession of child pornography.
Hansen was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Hansen was sentenced to 600 months’ imprisonment. A special assessment of $900 was imposed, Hansen was ordered to pay over $32,500 in victim restitution, and he must also serve a life term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations, the Iowa Division of Criminal Investigation, the Tipton Police Department, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-99.
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Former Dubuque Man Sentenced to over Twelve Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
A man who received and possessed child pornography was sentenced on September 20, 2018, to over 12 years in federal prison.
Christopher Scruggs, age 50, formerly from Dubuque, Iowa, received the sentence after an April 2, 2018, guilty plea to one count of receipt of child pornography and one count of possession of child pornography. At the plea hearing, Scruggs admitted that, between 2009 and 2014, he received and possessed child pornography.
Scruggs was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Scruggs was sentenced to 151 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $21,500 in restitution, with most of this restitution going to several victims depicted in images he possessed. Scruggs must also serve a five-year term of supervised release, and he must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque County Sheriff’s Office, the Scott County Sheriff’s Office, the Davenport Police Department, the Dubuque Police Department, and the Clinton County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-1048.
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Mexican Man Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used a fraudulent identification document to obtain a job was sentenced today to almost four months in federal prison.
Jose Castaneda-Rivera, age 49, a citizen of Mexico illegally present in the United States and living in Britt, Iowa, received the prison term after a July 9, 2018, guilty plea to one count of false use of an immigration identification document.
In a plea agreement, Castaneda-Rivera admitted he used a fraudulent State of Iowa Non-Driver Identification Card when he completed an employment form on April 4, 2013, at a business in Forest City, Iowa. Castaneda-Rivera knew the identification card was false and had not been issued to him by the State of Iowa. Castaneda-Rivera used the fraudulent identification card to falsely claim he was authorized to work in the United States when Castaneda-Rivera knew he was not authorized to work.
Castaneda-Rivera was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Castaneda-Rivera was sentenced to 114 days’ imprisonment and fined $2,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Castaneda-Rivera is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the Department of Homeland Security, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3010-LRR. Follow us on Twitter @USAO_NDIA.
Iowa Farmer Sentenced to Ten Months in Federal Prison for Using Money He Pledged to the USDARead the Press Release
A man who operated a northern Iowa farm and used farm proceeds for personal expenses, instead of paying off his USDA-backed line of credit, was sentenced today to ten months in federal prison.
David Pitz, age 36, from Elma, Iowa, received the prison term after an April 6, 2018, guilty plea to Conversion of Property Pledged to a Farm Credit Agency.
In a plea agreement, Pitz admitted he received a $125,000 guaranteed line of credit from the United States Department of Agriculture, to facilitate a loan with a local Elma, Iowa, bank. The line of credit was designed to be advanced to Pitz early each year to cover his farming expenses. Pitz was required to apply any crop sale proceeds, or other farm-related income, towards the debt owed on the line of credit. Instead of paying the money towards what he owed to the bank and USDA, Pitz used $117,020.68 in crop proceeds for personal expenses, including his purchase of a non-farm related building. After interest and other fees, Pitz acknowledged owing the bank and USDA over $177,000.
Pitz was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Pitz was sentenced to ten months’ imprisonment and was ordered to make $177,269.24 in restitution. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Pitz was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by United States Department of Agriculture – Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2012.
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Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Guatemalan man who used false identification documents to obtain a job was sentenced today to more than four months in federal prison.
Misael Saqueo Lopez-Tubac, age 36, a citizen of Guatemala illegally present in the United States and living in Waterloo, Iowa, received the prison term after an August 6, 2018, guilty plea to one count of unlawful use of identification documents.
In a plea agreement, Lopez-Tubac admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed employment paperwork and tax forms on July 23, 2015, at a business in Urbana, Iowa. The Social Security number and the Alien Registration number on the “green card” were issued other persons. Lopez-Tubac also used the same fraudulent Social Security card and “green card” when applying for work in Waterloo, Iowa, in September 2015, in Urbana in March 2016, and in Shell Rock, Iowa, in April 2016.
On May 8, 2018, ICE agents encountered Lopez-Tubac during a traffic stop in Waterloo. Lopez-Tubac told the agents that when he illegally entered the United States in March 2005, he was advised to enter the country with a woman and child and falsely claim they were his wife and child so that he would be released by immigration authorities if encountered. Lopez-Tubac and a woman and child were encountered by immigration authorities on March 30, 2005, and were released to maintain family unity pending immigration proceedings. Lopez-Tubac was not related to either the woman or the child.
A warrant was later issued for Lopez-Tubac’s arrest for unlawfully using another person’s social security number at a business in Postville, Iowa, but he was not found during an immigration enforcement action in May 2008. Lopez-Tubac’s whereabouts were unknown to immigration officials until his arrest on May 8, 2018.
Lopez-Tubac was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Lopez-Tubac was sentenced to 124 days’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Tubac is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3020-LTS.
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Guatemalan Who Used Fake Documents to Get a Job Sentenced to PrisonRead the Press Release
A Guatemalan man who used false identification documents to obtain a job was sentenced today to more than two months in federal prison.
Rudi Zamora-Samol, age 18, a citizen of Guatemala illegally present in the United States and living in Postville, Iowa, received the prison term after an August 21, 2018, guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Zamora-Samol admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on May 2, 2018, at a business in Independence, Iowa. The Social Security number was invalid and the Alien Registration number on the “green card” had been issued to another person. Zamora-Samol also used the same fraudulent Social Security card and “green card” when applying for work in Garnavillo, Iowa, in April 2017.
Zamora-Samol was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Zamora-Samol was sentenced to 73 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Zamora-Samol is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
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The case file number is 18-CR-2036-LTS. Follow us on Twitter @USAO_NDIA
Former Kossuth County Farmer Sentenced to a Year in Federal Prison for Lying to Bank to Secure a Farm Loan and CreditRead the Press Release
A former farmer who lied to his bank about how much land he was farming and how much crop he had in storage in order to secure a loan and a line of credit was sentenced September 20, 2018, to a year in federal prison.
Mark Laubenthal, age 36, from Bancroft, Iowa, received the prison term after a March 30, 2018 guilty plea to one count of making a false statement to a bank.
In a plea agreement, Laubenthal admitted he was farming land in north Iowa in 2015. He received a farm operating loan worth $160,000 and a line of credit worth $750,000 from a bank in the area. In order to get the loan and line of credit, Laubenthal had to fill out a financial statement listing his assets. Laubenthal admitted he provided false information to the bank on the financial statement he completed. Laubenthal told the bank he had $432,040 of crops in storage, when he actually had a substantially lower amount of crops in storage. In the plea agreement, Laubenthal also admitted he made other false statements to the bank over the course of 2015, including telling the bank he was farming 1,100 acres of land when he was only farming less than 300 acres and that he had a number of pieces of farm equipment that he did not actually have or own.
Evidence at sentencing showed that when Laubenthal failed to make payments on the loans, the bank declared him to be in default in 2016. During mediation meetings with the bank, Laubenthal made additional false statements. He told the bank that he had 120,000 bushels of corn in storage and had planted nearly 300 acres of crops for 2016. In fact, at the time he made those statements, Laubenthal had no crop in storage and had not planted any crops for 2016. Laubenthal defaulted on the entirety of the $160,000 loan and on $731,401.58 from the line of credit.
Laubenthal was sentenced in Cedar Rapids by Chief United States District Court Leonard T. Strand. Laubenthal was sentenced to 12 months and a day in federal prison. He was ordered to make $1,044,881.82 in restitution to the victim bank. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Laubenthal was released on the bond previously set and is to surrender to the United States Marshal on October 11, 2018.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and the United States Department of Agriculture – Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-3007.
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Seven Time Felon Sentenced to Ten Years in Federal Prison for Trafficking Heroin and Fentanyl Near PlaygroundsRead the Press Release
A Dubuque man who conspired to distribute heroin and fentanyl was sentenced today to ten years in federal prison.
Andre Carroll, age 51, from Dubuque, Iowa, received the prison term after a March 22, 2018 guilty plea to one count of conspiring to distribute fentanyl and heroin near three playgrounds in Dubuque.
At the guilty plea, Carroll admitted he conspired with others to distribute 100 grams or more of heroin and fentanyl in Dubuque between about 2013 and September 2017. Carrol had been convicted of crack cocaine distribution in federal court in 1997, and admitted to resuming drug dealing very shortly after he was released from federal prison in 2013. In total, Carroll had previously been convicted of seven prior felony drug offenses.
Carroll was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Carroll was sentenced to 120 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system. Carroll is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-01039-LTS.
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Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Guatemalan man who used false identification documents to obtain a job was sentenced today to more than two months in federal prison.
Melvin Caguach-Samol, age 21, a citizen of Guatemala illegally present in the United States and living in Postville, Iowa, received the prison term after an August 9, 2018, guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Caguach-Samol admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on May 10, 2018, at a business in Independence, Iowa. The Social Security number and the Alien Registration number on the “green card” were issued to other persons. Caguach-Samol also used the same fraudulent Social Security card and “green card” when applying for work in Garnavillo, Iowa, in April 2016.
Caguach-Samol was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Caguach-Samol was sentenced to 72 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Caguach-Samol is being held in the United States Marshal’s custody until he can be turned over to immigration officials. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2035-LTS. Follow us on Twitter @USAO_NDIA.
Honduran Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Honduran man who illegally returned to the United States after being deported was sentenced today to almost five months in federal prison.
Edi Lenin Chirinos-Najera, age 26, a citizen of Honduras illegally present in the United States and residing in Muscatine, Iowa, received the prison term after a May 23, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Chirinos-Najera admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government in 2017. Chirinos-Najera was found by immigration agents in April 2018 following Chirinos-Najera’s arrest for public intoxication. That matter remains pending. While Chirinos-Najera initially denied ever being deported, an analysis of his fingerprints confirmed that he had been deported in 2014.
Chirinos-Najera was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Chirinos-Najera was sentenced to 143 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Chirinos-Najera is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
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The case file number is 18-CR-41-LTS. Follow us on Twitter @USAO_NDIA.
Drug User Who Possessed Sawed-Off Shotgun Sent to Prison for Violating ProbationRead the Press Release
A Cedar Rapids man who was sentenced to three years of probation on November 10, 2016, for possession of a sawed off shotgun and being an unlawful user of drugs in possession of a firearm, was sentenced to more than four years in federal prison today for violating his probation.
Mario Jerel Harper, age 41, from Cedar Rapids, Iowa, received the prison term after a probation revocation hearing. Evidence at the hearing showed that Harper used controlled substances on a number of occasions, failed to tell the truth to his probation officer, and refused to participate in drug testing.
At Harper’s guilty plea in 2016, he admitted he was an unlawful user of marijuana and that he had a sawed-off shotgun that was not registered to him in accordance with federal law.
Harper was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Harper was sentenced to 57 months’ imprisonment, and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Harper is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and investigated by the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Harper was under supervision by the Northern District of Iowa United States Probation Office in Cedar Rapids.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 16-00040-LRR.
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Convicted Felon Sentenced to More Than Two Years in Prison for Unlawfully Possessing a GunRead the Press Release
A convicted felon who has repeatedly unlawfully possessed firearms was sentenced on September 19, 2018, to more than two years in federal prison.
Dezarris Shemeek Wilkerson, age 26, from Waterloo, Iowa, received the prison term after an April 5, 2018, guilty plea to possession of a firearm by a felon.
In a plea agreement, Wilkerson admitted he possessed a pistol on June 4, 2017. At the time he possessed the pistol, Wilkerson was a convicted felon. When officers made contact with Wilkerson on June 4, he was drunk and possessed marijuana.
Previously, in 2011, Wilkerson was convicted in federal court with being an unlawful drug user in possession of a firearm. In that case, he admitted to stealing a shotgun from a vacant house. In 2012, Wilkerson was convicted of carrying weapons in state court. In that case, he was found with a loaded revolver that had the serial number scratched off. In his plea agreement in the current case, Wilkerson also admitted that police found him in a vehicle on January 5, 2016, and that officers found a handgun under the seat in that same vehicle.
Wilkerson was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Wilkerson was sentenced to 33 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Wilkerson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-02082.
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Man with Assaultive Past to Serve over 3 Years for Gun PossessionRead the Press Release
A man who possessed a gun after multiple prior felony and domestic abuse convictions was sentenced today to more than 3 years in federal prison.
Nicholas Freitag, age 36, from Clear Lake, Iowa, received the prison term after a March 28, 2018, guilty plea to possession of a firearm by a felon and domestic abuser.
In a plea agreement, Freitag admitted that, in July 2017, he and his girlfriend purchased a firearm from another individual at a truck stop in Evansdale, Iowa. After the gun was later found in the trunk of Freitag’s vehicle, Freitag stated that he needed the gun for protection during his employment as a truck driver. Freitag also has a prior felony conviction for possessing a firearm in February 2017.
Freitag was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Freitag was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Freitag is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Clear Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3002.
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Justice Department Will Award up to $246 Million in Grants to Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – United States Attorney Peter E. Deegan, Jr. joined the Department of Justice today in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities, including $373,511 in funding for public safety and community policing to the Sac and Fox Tribe of the Mississippi in Iowa.
“Improving public safety and protecting vulnerable victims in all of our communities remains a priority for my office and the Department of Justice,” said Deegan. “Along with prosecuting the most violent and dangerous offenders in the district, the grant awarded to the Meskwaki Tribe is another step we are taking to make our communities safer for all.”
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico. “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety.”
The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.
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Cedar Rapids Drug User Convicted of Gun CrimeRead the Press Release
A Cedar Rapids woman who was an unlawful user of methamphetamine and possessed a gun pled guilty today in federal court in Cedar Rapids.
Melissa Kurth, age 38, from Cedar Rapids, Iowa, was convicted of being an unlawful user of methamphetamine in possession of a firearm. At the plea hearing, Kurth admitted that she possessed a gun on January 26, 2018, when she was stopped by officers from the Cedar Rapids Police Department. During the stop officers recovered a gun, two digital scales, and two syringes. Kurth also admitted she was an unlawful user of methamphetamine for an extended period of time.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Kurth remains in custody of the United States Marshal pending sentencing. Kurth faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ashley Corkery and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-00056.
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Second Man Charged in Alleged Plot to Hijack Internet DomainRead the Press Release
Rossi Lorathio Adams II, also known as “Rossi Adams” and “Polo,” from Cedar Rapids, Iowa, has been charged with one count of Conspiracy to Interfere with Commerce by Threats and Violence. The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.
The Indictment alleges that, in about June 2017, Adams conspired to obtain an Internet domain, doitforstate.com, from E.D., by extortion. That is, it is alleged that Adams conspired to obtain E.D.’s consent to obtain the domain by the wrongful use of force, violence, and fear.
Adams’s arrest follows the arrest, prosecution, and conviction of Sherman Hopkins, Jr. for Interference and Attempted Interference with Commerce by Threats and Violence. In June 2018, Hopkins was sentenced to the statutory maximum sentence, twenty years’ imprisonment, after he pled guilty to the crime of Interference and Attempted Interference with Commerce by Threats and Violence.
If convicted, Adams faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
Adams appeared today in federal court in Cedar Rapids and was released on bond. Adams’s next appearance is set for November 13, 2018.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Cedar Rapids Police Department. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-86-CJW. Follow us on Twitter @USAO_NDIA.
Sioux Center Man Sentenced to Prison for Exploitation of MinorsRead the Press Release
The coach of a boys’ basketball team who secretly made videos of boys on the team showering, was sentenced on September 12, 2018, to 15 years in federal prison.
Curtis Van Dam, age 36, from Sioux Center, Iowa, received the prison term after a June 11, 2018, guilty plea to one count of sexual exploitation of a child.
In a plea agreement, Van Dam admitted that between November of 2013 and October of 2017, in the Northern District of Iowa, he used minors under the age of 18 to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, using cameras, cell phones, SD cards, and an Apple MacBook A1181 Laptop personal computer.
Van Dam was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Van Dam was sentenced to 15 years’ imprisonment. He must also serve a 7-year term of supervised release after the prison term. Van Dam was ordered to pay two special assessments of $100 and $5000. There is no parole in the federal system.
United States Attorney Peter E. Deegan stated, “This case demonstrates our office’s continuing resolve to keep our children safe from sexual exploitation. We commend the fine work of the Sioux Center Police Department in this matter, and reiterate our commitment to working with our state and local partners to fight child exploitation in our communities.”
Van Dam is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy T. Duax and investigated by the Sioux Center Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-04005.
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Waterloo Man Sentenced to More Than Six Years in Prison for Unlawfully Possessing a .45 Caliber HandgunRead the Press Release
A two-time convicted felon and methamphetamine user who unlawfully possessed a firearm was sentenced September 11, 2018, to more than 6 years in federal prison.
Gage Tyler Bondy, age 22, from Waterloo, Iowa, received the prison term after a May 24, 2018, guilty plea to possession of a firearm by a prohibited person.
Court documents show that in the early morning of February 19, 2018, Bondy stole a car parked in front of a house in Waterloo. Officers located the car, but Bondy sped away from the officers, going over 90 miles per hour, until he crashed into a utility pole. Officers found a Ruger .45 caliber handgun in Bondy’s waistband and a used methamphetamine syringe in his sock. They transported Bondy to a local hospital.
Bondy was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade to 77 months’ imprisonment. Bondy must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (“PSN”), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Bondy is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Waterloo Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-20.
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Three Defendants Sentenced to Years in Federal Prison for Trafficking Ice Methamphetamine into DubuqueRead the Press Release
Three people were sentenced to federal prison on September 10 and 11, 2018, for their roles in a conspiracy to transport methamphetamine from Dallas, Texas, and distribute it in Dubuque, Iowa.
Kevin John Heim, age 31, and Stacy Lynn Weidenbacher, age 45, both from Dubuque, received their prison terms after May 7, 2018 guilty pleas to conspiracy to distribute methamphetamine. Anthony Dewayne Crosby, age 38, from Dallas, Texas, received his prison term after a May 2, 2018 guilty plea to possession with intent to distribute methamphetamine.
Court documents and evidence presented at court hearings showed that in mid-January 2018, Heim drove a rental car from Dubuque to Dallas, where he picked up approximately twenty ounces of ice methamphetamine. Crosby then accompanied Heim back to Dubuque. Heim, Weidenbacher, and others then sold the methamphetamine in Dubuque and Crosby collected the money from the sales. Afterwards, Heim sent two of his associates back to Dallas with Crosby. Heim’s associates bought several more ounces of methamphetamine in Dallas.
On January 22, 2018, Heim and Weidenbacher drove a rental car back to Dallas. Police investigators had attached a tracking device to the rental car before it left Iowa. Once in Dallas, Heim and Weidenbacher met Crosby, who stayed with them while they waited until the next shipment of methamphetamine arrived on a semi-truck from Mexico.
Once they had received the methamphetamine, Heim and Crosby loaded it into compartments under the hood of the rental car. On January 29, 2018, investigators stopped Heim, Weidenbacher, and Crosby as they drove back into Dubuque County. Investigators searched the rental car and seized the methamphetamine.
Heim, Weidenbacher, and Crosby were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Heim and Crosby were sentenced to 170 months’ imprisonment. Weidenbacher was sentenced to 76 months’ imprisonment. All three defendants must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Drug Task Force, Dubuque County Sheriff’s Office, Dubuque Police Department, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation, Cascade Police Department, and Dyersville Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1006-LRR.
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Former Church Treasurer Pleads Guilty to Defrauding Church of Nearly a Half-Million DollarsRead the Press Release
A man who used church funds for his own personal expenses over a thirteen year period pled guilty today in federal court in Sioux City.
Andrew Matheason, age 65, from Graettinger, Iowa, was convicted of one count of wire fraud.
In a plea agreement, Matheason admitted that he served as the treasurer at Bethel Lutheran Church in Graettinger from 2003 through 2017, and that he stole at least $479,297.68 from the church during that time period. In the plea agreement, Matheason admitted that he wrote checks to himself and established a fictitious company and wrote checks from the church’s bank account made payable to that fake company. He also set up electronic transfers of funds from the church’s accounts to pay his personal credit card balances. To avoid detection, Matheason created false financial reports and presented those false reports to church leaders.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Matheason remains free on conditions of release pending sentencing. Matheason faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3036.
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Dubuque Man Sentenced to More than a Decade in Federal Prison for Meth TraffickingRead the Press Release
A man who trafficked methamphetamine throughout Dubuque, Iowa, and unlawfully possessed a firearm while using methamphetamine was sentenced on September 11, 2018, to more than 11 years in federal prison.
Richard Thomas Hense, age 34, from Dubuque, Iowa, received the prison term after a May 10, 2018, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm by a drug user.
Evidence presented at court hearings showed that from about September 2016 until October 2017, Hense sold approximately ten pounds of ice methamphetamine throughout Dubuque that he had received from Derek Richard Rath. Rath was getting the methamphetamine in the mail from a source in Phoenix, Arizona.
On the night of October 13, 2017, officers stopped Hense for a traffic violation. The officers searched Hense’s vehicle and found a half-ounce of ice methamphetamine, prescription pills, a digital scale, a loaded .32 caliber revolver, and fifty-three rounds of ammunition. Hense admitted to possessing the methamphetamine and firearm. He also told officers that he had been smoking methamphetamine for the past year.
Hense was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 141 months’ imprisonment. Hense must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Hense is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Drug Task Force, Dubuque County Sheriff’s Office, Dubuque Police Department, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1009-LRR.
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Mexican Man Sentenced to Prison for Illegally Possessing a GunRead the Press Release
An illegal alien who possessed a firearm was sentenced today, to over one year in federal prison.
Jose Ramirez-Galvan, age 37, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after an April 23, 2018, guilty plea to one count of possession of a firearm by an illegal alien.
In a plea agreement, Ramirez-Galvan admitted he illegally possessed a firearm on February 6, 2018. Ramirez-Galvan was deported from the United States to Mexico in May 2012. In October 2015, Ramirez-Galvan illegally returned to the United States without permission. On February 6, 2018, Ramirez-Galvan was arrested in Waterloo, Iowa. During a search of Ramirez-Galvan’s residence, agents found a .22 caliber revolver under Ramirez-Galvan’s mattress. It is a violation of federal law for aliens unlawfully in the United States to possess firearms.
Ramirez-Galvan was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Ramirez-Galvan was sentenced to 18 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez-Galvan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Homeland Security Investigations.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2007-LRR.
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Mason City Woman to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine in Mason City was sentenced September 10, 2018, to more than 10 years in federal prison.
Brenda Ruehlow, age 38 from Mason City, Iowa, received the prison term after a June 4, 2018 guilty plea to one count of conspiracy to distribute methamphetamine.
At the plea hearing, Ruehlow admitted she and others conspired to distribute methamphetamine in the Mason City area from before January 2017 to April 2017.
On April 21, 2017, a search warrant of Ruhelow’s residence resulted in seizing 444.16 grams of ice methamphetamine along with $5,012 in cash, $500 worth in seized electronics and numerous items of drug paraphernalia.
Ruehlow was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Ruehlow was sentenced to 121 months’ imprisonment. She must also serve a 5-year term of supervised release after the prison term. A special assessment of $100 was imposed. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Iowa Division of Narcotics Enforcement, Cerro Gordo County Sheriff’s Office, Central Iowa Drug Task Force, Mid-Iowa Drug Task Force, and Iowa Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3011.
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Cherokee Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on September 10, 2018, in federal court in Sioux City.
Raymond Andrew Kerns, 36, from Cherokee, Iowa, was convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Kerns was previously convicted of possession of a controlled substance, third or subsequent offense, in the Iowa District Court for Pottawattamie County in August 2017.
At the plea hearing, Kerns admitted that from January 2017 through February 2018, he was involved in a conspiracy that distributed more than 500 grams of methamphetamine mixture in and around the Cherokee, Iowa area. On February 27, 2018, Kerns was apprehended by law enforcement in Storm Lake, Iowa when Kerns was attempting to meet a co-conspirator for purposes of methamphetamine trafficking. Law enforcement seized $1,500 and 8 grams of methamphetamine from Kerns, which Kerns admitted he planned to distribute to other persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Kerns remains in custody of the United States Marshal pending sentencing. Kerns faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Cherokee County Sheriff’s Office, Storm Lake Police Department, and the Iowa Division of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4025.
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Mexican Man Sentenced to Prison Following Deportation and Document FraudRead the Press Release
A Mexican man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced September 5, 2018, to more than 2 months in federal prison.
Emmanuel Santos-Diaz, age 34, a citizen of Mexico illegally present in the United States and residing in Hampton, Iowa, received the prison term after a July 17, 2018, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States.
At the guilty plea, Santos-Diaz admitted he had previously been deported from the United States in February 2003, and that he illegally reentered the United States without the permission of the United States government. Santos-Diaz also admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on March 30, 2015, at a business in Clear Lake, Iowa. The Social Security account number on the card used by Santos-Diaz belonged to a United States citizen. The Alien Registration number on the “green card” had been issued to another person.
In May 2018, the Clear Lake Police Department received a complaint from a woman in Arkansas that she was being denied benefits because someone was using her Social Security number in Iowa to work and that income was being counted against her. On June 6, 2018, Santos-Diaz was arrested by immigration agents at a job site in Hampton.
Santos-Diaz also has prior convictions in Franklin County, Iowa, for forgery in 2003 and operating while intoxicated (OWI) in 2005.
Santos-Diaz was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Santos-Diaz was sentenced to 73 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Santos-Diaz is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3024-LRR.
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Leader of “We the Best” Cedar Rapids Heroin Ring Sentenced to More Than 30 Years’ ImprisonmentRead the Press Release
A man who led a long-running heroin distribution organization in Cedar Rapids known by customers as “We the Best” was sentenced today to more than 30 years in federal prison.
Antonio Alonzo Outlaw, age 40, from Chicago, Illinois, and Cedar Rapids, Iowa, received the prison term after a December 11, 2017 jury verdict finding him guilty of conspiring to distribute a kilogram or more of heroin and aiding and abetting the distribution of heroin. In September 2017, Outlaw pleaded guilty to two counts of distributing heroin in 2013.
The evidence at trial showed that Outlaw ran a heroin distribution operation in Cedar Rapids from at least 2013 through January 2017. Witnesses testified that Outlaw’s operation was commonly known to customers as “We the Best” because of a signature line commonly included on text messages sent out by members of the group. After making a phone call to the “We the Best” phone, customers would meet with Outlaw or one of his “runners” to purchase the heroin. The evidence showed that Outlaw’s group distributed over two kilograms of heroin during the course of the conspiracy.
Other evidence at the sentencing hearing showed that in the fall of 2017, while in federal custody awaiting trial on the heroin charges, Outlaw participated in an attempted jail break from the Bremer County Jail in Waverly, Iowa. The evidence showed that Outlaw and another federal inmate, Jose Valencia, planned to break out of the jail by having another individual tamper with the exterior of the window to Outlaw’s cell. Jail staff noticed significant damage to the exterior of the window and ended the attempt before the window was breached.
Outlaw was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Outlaw was sentenced to 365 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
During the sentencing hearing, the court noted that the trial evidence, which included approximately two dozen customers of “We the Best,” was a “parade of human misery” that showed that Outlaw’s crime significantly impacted the Cedar Rapids community. The court noted trial evidence that showed that Outlaw’s customers often stole items from retail stores to support their drug habits, and that some of those thefts were requested by Outlaw and other members of “We the Best.”
“Even the smallest dose of heroin can kill, and Outlaw pushed kilograms of this poison into our community for years,” said U.S. Attorney Peter E. Deegan, Jr. “Today, through the tireless efforts of our prosecutors and law enforcement partners, Outlaw was brought to justice in a court of law.”
Outlaw is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement and is being prosecuted by Assistant United States Attorneys Dan Chatham and Emily Nydle.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-91-LRR.
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Head of Multinational Drug Organization Sentenced to Life ImprisonmentRead the Press Release
A man responsible for distributing hundreds of pounds of ice methamphetamine was sentenced today to a life sentence in federal prison.
Jose Maria Valencia, age 44, from La Ruana, Michoacán, Mexico, received the prison term after a February 6, 2018, guilty plea to conspiracy to distribute at least 500 grams of methamphetamine by a drug felon.
In 2013, Valencia was sent to California state prison after being convicted of conspiracy to commit murder. Despite his incarceration, Valencia continued to run his drug organization. Using contraband items such as cell phones, Valencia arranged to import methamphetamine from Mexico into the United States. Once the methamphetamine arrived in the United States, it would be transported to various locations, including Iowa, typically concealed in vehicles. Defendant was responsible for recruiting, managing, and supervising individuals in the organization. During the course of the conspiracy, defendant was responsible for distributing at least 250 pounds of ice methamphetamine.
Valencia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Valencia was sentenced to life imprisonment. There is no parole in the federal system.
“Valencia continued to push hundreds of pounds of deadly methamphetamine into our community despite being incarcerated in California for conspiracy to commit murder,” said U.S. Attorney Peter E. Deegan, Jr. “This case is a reminder that we must always remain vigilant in our effort fight back against national and international drug trafficking organizations.”
Valencia is being held in the United States Marshal’s custody until he can be returned to state custody in California.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2041.
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Illegal Alien Sentenced to Prison for Illegally Reentering the United States Following DeportationRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than three months in federal prison.
Gerardo Lopez-Mendez, age 32, a citizen of Guatemala illegally present in the United States and residing in Cedar Falls, Iowa, received the prison term after a July 3, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Lopez-Mendez admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government. Lopez-Mendez was found by immigration agents in Cedar Falls in May 2018 following a traffic stop of a vehicle containing six illegal aliens.
Lopez-Mendez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lopez-Mendez was sentenced to 98 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Mendez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2028-LRR. Follow us on Twitter @USAO_NDIA.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.
Diego Eduardo Brito-Garcia, age 24, a citizen of Guatemala illegally present in the United States and residing in Dubuque, Iowa, received the prison term after a July 13, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Brito-Garcia admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government in 2015. Brito-Garcia was found by immigration agents at the Dubuque County Jail in May 2018 following Brito-Garcia’s arrest for domestic abuse assault causing bodily injury. That matter remains pending. Brito-Garcia also used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on March 9, 2016, at a business in Dubuque.
Brito-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Brito-Garcia was sentenced to 67 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Brito-Garcia is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1022-LRR.
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Mexican Man Pleads Guilty to Meth ConspiracyRead the Press Release
A Mexican man who was illegally in the United States pled guilty on August 28, 2018, in federal court in Sioux City.
Jesus Jonathan Vazquez-Espinoza, 33, a citizen of Mexico illegally present in the United States and who was residing in Spencer, Iowa, was convicted of conspiracy to distribute methamphetamine.
In a plea agreement, Vazquez-Espinoza admitted that he received approximately $10,000 worth of methamphetamine in March 2017, and continued to receive an average of 1 pound of methamphetamine every two weeks until his arrest in April 2018. Vazquez-Espinoza arranged for the methamphetamine to be delivered by mail to different residences in Iowa. At the time of Vazquez-Espinoza’s arrest, law enforcement seized over 2 pounds of methamphetamine and $8,712 in cash.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Vazquez-Espinoza remains in custody of the United States Marshal pending sentencing. Vazquez-Espinoza faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $5,000,000 fine, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ajay J. Alexander and was investigated by the Iowa Division of Narcotics Enforcement with assistance from the Iowa Great Lakes Drug Task Force, which includes the Clay County Sheriff’s Office, the Dickinson County Sheriff’s Office, the O’Brien County Sheriff’s Office, the Iowa State Patrol, Spencer Police Department, the Okoboji Police Department, and the Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4032-LTS.
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Former Center Point Bank Vice President Pleads Guilty to Aiding and Abetting the Obstruction of an FDIC ExaminationRead the Press Release
A former vice president at Center Point Bank & Trust who aided and abetted the obstruction of an FDIC examination pled guilty on August 27, 2018.
Martin Smith, age 38, from Center Point, Iowa, was convicted of Aiding and Abetting the Obstruction of the Examination of a Financial Institution. At the plea hearing, Smith admitted that he backdated a refinancing loan to obstruct an FDIC investigation.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Smith remains free on bond previously set pending sentencing. Smith faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob A. Schunk and was investigated by the FDIC Office of Inspector General and the United States Secret Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:18-cr-00076-LTS.
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Iowa Falls Man Prohibited from Possessing Guns Because of Prior Misdemeanor Domestic Abuse Convictions Sentenced to PrisonRead the Press Release
An Iowa Falls man who was prohibited from possessing guns because of prior misdemeanor domestic abuse convictions was sentenced August 24, 2018, to more than a year in federal prison.
Heath Allen Ziesman, age 35, from Iowa Falls, Iowa, received the prison term after a March 5, 2018, guilty plea to possession of a firearm by a domestic abuser.
Court documents and evidence at the sentencing hearing showed that on June 18, 2015, police investigators executed a search warrant at Ziesman’s residence in Iowa Falls. Investigators recovered a loaded Rock Island Armory .45 caliber pistol and a box of .45 caliber ammunition in a dresser drawer by Ziesman’s bed. They also found a loaded rifle, a shotgun, detached shotgun barrels, boxes of ammunition, and numerous loose cartridges of ammunition in the basement.
In March 2010, Ziesman was convicted of first degree harassment for threatening his ex-girlfriend. Ziesman sent compromising photographs of his ex-girlfriend to her family members and threatened to send the photographs to the schoolboard where she worked.
In July 2012, Ziesman was convicted of domestic abuse assault for grabbing his ex-wife’s neck and choking her. While still on probation for this assault conviction, Ziesman pushed his ex-wife down three stairs, causing her to smash her forehead into a door frame and splitting open her skin. She needed 27 stitches to seal her wound. Ziesman received a second domestic abuse assault conviction in July 2013.
Ziesman was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. He was sentenced to 18 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Ziesman was released on conditions previously set and is to surrender to the United States Marshal on a date yet to be set.
The case was prosecuted by Special Assistant United States Attorneys Erin Eldridge and Drew Inman and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Franklin County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-98-LTS.
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Dubuque Man Sentenced to 20 Years’ Prison for Meth Trafficking and Money LaunderingRead the Press Release
A man who trafficked at least 50 pounds of methamphetamine in the Dubuque, Iowa, area was sentenced yesterday to 20 years in federal prison.
Derek Richard Rath, age 35, from Dubuque, received the prison term after an August 23, 2018, guilty plea to conspiracy to distribute methamphetamine near a school and conspiracy to commit money laundering.
Court documents and evidence presented at the sentencing hearing established that in June 2016, Rath obtained the phone number of codefendant Anthony Robert McCarron in Phoenix. Shortly after, Rath and McCarron agreed that Rath would pay McCarron to ship packages of ice methamphetamine to several addresses in Dubuque. McCarron mailed at least 50 pounds of methamphetamine to Rath between July 2016 to July 2017.
Rath paid for the methamphetamine by mailing packages of cash to McCarron. In all, Rath and McCarron mailed at least 56 packages, sometimes using aliases on the shipping labels. They also wired thousands of dollars to each other with MoneyGram, Western Union, and Walmart2Walmart.
Rath was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand to 240 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system. Rath is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Drug Task Force, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-1042-LTS.
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Janesville Man Found Guilty of Conspiring to Distribute MethamphetamineRead the Press Release
A man who conspired with others to distribute ice methamphetamine was convicted by a jury on August 22, 2018, after a three-day trial in federal court in Cedar Rapids.
Robert Lewis, age 43, from Janesville, Iowa, was convicted of conspiracy to distribute at least 500 grams of a mixture of methamphetamine and 50 grams of actual methamphetamine. The verdict was returned August 22, 2018, following about three hours of jury deliberations.
The evidence at trial showed that in the summer of 2013, Lewis began working with others to distribute ice methamphetamine throughout the Waterloo area. Lewis and his associates obtained methamphetamine from an out-of-state source of supply. The source shipped the methamphetamine via FedEx concealed in car part boxes. Each shipment contained multiple pounds of methamphetamine. Lewis and others then broke the methamphetamine down into smaller quantities for sale once it arrived in Iowa. Lewis also used his daughter to register a vehicle for the head of the drug organization and allowed other members of the conspiracy access to his home, referred to at trial as the “clubhouse,” for the purpose of repackaging and distributing methamphetamine. Lewis left Iowa in the fall of 2013, but continued to receive methamphetamine from his associates. For example, in January 2014, one person attempted to send Lewis methamphetamine hidden in a Hamburger Skillet prepared meal box. FedEx employees flagged the package as suspicious and investigators ultimately seized a quarter ounce of methamphetamine from inside the box.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Lewis remains in custody of the United States Marshal pending sentencing. Lewis faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and five years of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, and the Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2084.
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Guatemalan Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than four months in federal prison.
Pedro Isaias Jax-Tiu, age 22, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a June 4, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Jax-Tiu admitted he had previously been deported from the United States in 2015 and illegally reentered the United States without the permission of the United States government. When Jax-Tiu was found by immigration agents in Cedar Rapids, Iowa, in April 2018, Jax-Tiu provided the agents with a false name and date of birth. Analysis of Jax-Tiu’s fingerprints established his true name and prior deportation.
Jax-Tiu was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Jax-Tiu was sentenced to 127 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Jax-Tiu is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-40-LTS.
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Brazilian Man Pleads Guilty to Intimidating and Interfering with a Flight Crew and Flight AttendantsRead the Press Release
Guilherme Alves De Melo (Alves), age 32, a citizen of Brazil, pled guilty today to one count of intimidating a flight crew member and flight attendants, thereby lessening or interfering with their ability to perform their duties, in violation of federal law. The charge was contained in an Indictment returned July 25, 2018, in United States District Court in Cedar Rapids.
An affidavit previously filed in the case alleged that, on or about June 23, 2018, Alves was a passenger on an international American Airlines flight originating in Calgary, Canada, and bound for Chicago, Illinois. During the flight, Alves became disruptive and a flight attendant repeatedly told him that he needed to calm down. The flight attendant brought the disruptive conduct to the attention of the captain. About an hour before the flight was to arrive in Chicago, Alves again became disruptive and was scaring others passengers. Less than a minute later, Alves “lost it,” leading to some of the passengers restraining him with zip ties provided by the flight crew. As a result of Alves’ behavior, the flight was diverted to the Eastern Iowa Airport in Cedar Rapids after it had begun its final descent to Chicago.
After the aircraft landed in Cedar Rapids, Alves was removed from the airplane by Cedar Rapids Police. However, he again became loud and used expletives within sight and sound of other passengers and employees at the airport. Alves was charged with disorderly conduct for these actions and, on June 24, 2018, pleaded guilty to disorderly conduct in Linn County District Court.
Alves faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment. A sentencing date will be set at a later date.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00071.
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Mexican Man Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used false identification documents to obtain a job was sentenced August 21, 2018, to almost four months in federal prison.
Jose de Jesus Becerra-Lopez, age 24, a citizen of Mexico illegally present in the United States and living in Dyersville, Iowa, received the prison term after a June 4, 2018, guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Becerra-Lopez admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on January 3, 2018, at a business in Cascade, Iowa. The Social Security number was invalid and the Alien Registration number on the “green card” was issued to another person.
Becerra-Lopez was previously deported from the United States to Mexico in 2012. He illegally reentered the United States without the permission of the United States government. On February 4, 2018, Becerra-Lopez was found by immigration agents following a roll-over vehicle accident in Muscatine County.
Becerra-Lopez was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Becerra-Lopez was sentenced to 118 days’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Becerra-Lopez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1013-LTS.
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Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used false identification documents to obtain a job was sentenced today to almost four months in federal prison.
Rogelio Lagunas-Chavez, age 32, a citizen of Mexico illegally present in the United States and living in Cedar Rapids, Iowa, received the prison term after a May 24, 2018, guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Lagunas-Chavez admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on March 7, 2016, at a business in Cedar Rapids, Iowa. The Social Security number and the Alien Registration number on the “green card” were issued to other persons. Lagunas-Chavez also used the same fraudulent Social Security card and “green card” when applying for work in Cedar Rapids in March 2007.
During a one week period in May 2006, Lagunas-Chavez illegally entered the United States and was returned to Mexico by immigration officials four times. He most recently came to the attention of immigration following his arrest in Linn County, Iowa, for operating while intoxicated (OWI) in April 2018. That matter remains pending.
Lagunas-Chavez was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Lagunas-Chavez was sentenced to 119 days’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Lagunas-Chavez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-38-LTS.
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Whiting Man Sentenced for Tax FraudRead the Press Release
A man who filed false and fraudulent tax returns was sentenced August 20, 2018, to two years’ probation.
Kurt Neldeberg, 65, from Whiting, Iowa, received the sentence after a February 28, 2018, guilty plea to making a false and fraudulent tax return.
At the guilty plea hearing, Neldeberg admitted that from at least 2009 through 2012, he failed to report a total of approximately $315,512 in income from grain sales which resulted in over $100,000 in unpaid and taxes due and owing for those tax years. Neldeberg admitted he deposited proceeds from farm grain sales into personal bank accounts, and willfully failed to inform his bookkeeper and his tax preparer he had done so. Neldeberg knew that the farm receipts reported on Schedule F of his joint federal tax returns were incorrect, resulting in underreported income for each of the tax years 2009-2012 and tax losses therefrom.
Neldeberg was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Neldeberg was sentenced to 24 months’ federal probation and ordered to complete 120 hours of community service. He was also ordered to pay a $100 special assessment. Finally, Neldeberg was ordered to make full restitution to the Internal Revenue Service, including any and all interest and penalties determined to be due and owing. Neldeberg had previously posted a $125,000 cash bond to the IRS for restitution purposes.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4012. Follow us on Twitter @USAO_NDIA.
Galva Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on August 21, 2018, in federal court in Sioux City.
Lee Charles Mercer, 42, from Galva, Iowa, was convicted of conspiracy to distribute methamphetamine. Mercer was previously convicted of three separate felony drug offenses in the Iowa District Court in 2013, 2004 and 1998.
At the plea hearing, Mercer admitted that from November 2017 through March 2018, he was involved in a conspiracy that distributed more than 2500 grams of methamphetamine mixture in and around Galva, Iowa. On March 12, 2018, Mercer was stopped for a traffic violation in Woodbury County, Iowa. During law enforcement’s consent to search Mercer’s vehicle, approximately 4 ounces of methamphetamine was seized in four separate baggies, along with $5,000 in cash. Mercer admitted he planned to distribute the methamphetamine to other persons. Mercer further admitted that he planned to use the $5,000 to purchase a pound of methamphetamine later in Sioux City, Iowa.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Mercer remains in custody of the United States Marshal pending sentencing. Mercer faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Woodbury County Sheriff’s Office, Sioux City Police Department, and the Drug Enforcement Administration Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4018.
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Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“The effect of the opioid epidemic could not be clearer – American life expectancy is shorter for the first time in decades,” United States Attorney for the Northern District of Iowa Peter E. Deegan, Jr. stated. “Heroin and prescription opioid abuse have taken a devastating toll on communities in this district and my office is committed to prosecuting those who distribute these dangerous drugs. But criminal prosecutions alone will not protect our communities. Reducing the amount of prescription opioids on the street and the number of people who become addicted to prescription opioids is another important step in addressing the opioid epidemic.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing
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Woman Convicted for Selling Pounds of Methamphetamine in Cedar RapidsRead the Press Release
A woman who sold at least five pounds of ice methamphetamine pled guilty August 9, 2018, in federal court in Cedar Rapids.
Lauren Nicole Ward, age 30, originally from Newport News, Virginia, was convicted of conspiracy to distribute methamphetamine.
At a previous court hearing, evidence showed that, beginning in August 2017, Ward lived with a roommate in a house in Cedar Rapids. Ward’s roommate was receiving approximately 10 to 15 pounds of methamphetamine per month from Mexican sources during this time. While she was living at the house, Ward sold at least five pounds of her roommate’s methamphetamine. Ward’s roommate also directed Ward to use Wells Fargo and Western Union to wire thousands of dollars to Mexico. Ward was paid $100 each time she wired money for her roommate.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Ward was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. She faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment without the possibility of parole, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, Marion Police Department, Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Linn County Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov. The case file number is 18-CR-66-LRR.
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Jury Finds Three Time Convicted Felon Guilty of Heroin ConspiracyRead the Press Release
A man who conspired to distribute heroin within protected locations was convicted by a jury on August 14, 2018, after a 3 ½-day trial in federal court in Sioux City.
Shelton Oliver, a/k/a Sinbad, 47, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute heroin and four counts of distribution of heroin, all within 1000 feet of a protected location. The verdict was returned following approximately two hours of jury deliberations.
The evidence at trial showed that Oliver distributed heroin on February 7, 14, and 27, 2018, and March 13, 2018, to a confidential informant utilized by law enforcement. Evidence also showed at trial that Oliver was involved in a conspiracy to distribute heroin in the Sioux City area from 2016 through on or about March 27, 2018. Evidence proved that the conspiracy and the four separate distributions all occurred within 1000 feet of protected locations, namely: Dale Street Park, Grandview Park, Alfred Thompson Children’s Park, Dinosaur Park, and Hunt Elementary School, in Sioux City, Iowa.
Evidence at trial also showed that on October 6, 2017, Oliver distributed heroin to Ty Olsen, who later died on this same date from a heroin overdose. The evidence at trial further showed that on March 13, 2018, Oliver distributed heroin to the confidential informant in a vehicle while Michael Pinney was overdosing in the passenger seat but was later revived by medical personnel.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Oliver remains in custody of the United States Marshal pending sentencing. Oliver faces a mandatory minimum sentence of life imprisonment, a $20,000,000 fine, and at least 6 years of supervised release, if ever released from imprisonment.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and Mikala Steenholdt and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4038.
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ER Nurse Who Stole Patient Pain Medications Pleads GuiltyRead the Press Release
A registered nurse who used patient identities to steal hydrocodone pain pills while employed in a hospital emergency room pled guilty August 13, 2018, in federal court in Cedar Rapids.
James Allen Moorehead, age 58, from Mason City, Iowa, pled guilty to one count of acquiring a controlled substance by misrepresentation, fraud, deception, or subterfuge, one count of false statements relating to health care matters, and one count of aggravated identity theft.
In a plea agreement, Moorehead admitted that, while employed at Franklin General Hospital in Hampton, Iowa, as a registered nurse in 2016 and 2017, he used patient identities to obtain controlled substances, specifically pills containing hydrocodone, by accessing their prescribed medication in the hospital’s system, and diverting those pain pills to himself. Moorehead concealed his scheme by falsely representing in medical records that the medications were actually administered to the patients and by giving his patients Tylenol instead of their prescribed medications. As a result of Moorehead’s subterfuge and diversion of their mediation, multiple patients reported increased pain during Moorehead’s shifts.
Moorehead had previously surrendered his nursing license under a 2008 Iowa Board of Nursing agreement, after having been terminated from North Iowa Mercy Health Center and Genesis Health Center for stealing opioids. Moorehead recovered his nursing license in June 2011 and had been working at Franklin General Hospital since March 2012 until he was terminated in March 2017.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Moorehead remains free on bond previously set pending sentencing. Moorehead faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of eleven years’ imprisonment, a $750,000 fine, and five years of supervised release following any imprisonment
The case is being prosecuted by Assistant United States Attorney Lyndie M. Freeman and was investigated by the Iowa Medicaid Fraud Control Unit. Court file information at https://ecf.iand.uscourts.gov/. The case file number is 18-CR-3021.
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Dubuque Man Pleads Guilty to Unlawfully Possessing Firearm as a Drug UserRead the Press Release
A man who possessed a .357 Magnum revolver as an unlawful user of marijuana pled guilty August 13, 2018, in federal court in Cedar Rapids.
Javontae Ernie Grisson, age 22, from Dubuque, Iowa, was convicted of possession of a firearm by a drug user.
A criminal complaint previously filed alleged that on May 17, 2018, police investigators executed a search warrant at Grisson’s apartment in Dubuque. During the search, investigators found drug paraphernalia and marijuana strewn throughout the apartment. Investigators found a .357 Magnum revolver with ammunition on Grisson’s bed.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Grisson remains released on previously set court conditions pending sentencing. He faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated by the Dubuque Drug Task Force, Dubuque Police Department, Dubuque County Sheriff’s Office, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1026-LRR.
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Drug Traffickers Convicted for Transporting Pounds of Methamphetamine from the Southwest into IowaRead the Press Release
A man and woman who trafficked massive quantities of ice methamphetamine into Iowa have pled guilty in federal court in Cedar Rapids.
Marty Brian Robbins, age 55, of Marion, Iowa, was convicted of conspiracy to distribute methamphetamine. Robbins’ co-defendant, Valerie Lee Kupka, age 42, of Clutier, Iowa, had previously been convicted of conspiracy to distribute methamphetamine on August 10, 2018.
Robbins’ plea agreement and evidence from previous court hearings showed that starting in April 2017, Robbins obtained large shipments of ice methamphetamine from sources in the Southwest United States. He then transported the methamphetamine to Iowa in a trailer. Kupka assisted Robbins in selling the methamphetamine in Iowa.
In the late evening of April 20, 2018, police investigators conducted surveillance on Robbins while he was at a storage facility in Cedar Rapids. Investigators saw Robbins and others unload boxes of suspected methamphetamine from Robbins’ trailer. After executing several search warrants on Robbins’ truck, trailer, and other cars, police investigators recovered approximately nine pounds of ice methamphetamine. Investigators also recovered a total of $57,122 in cash proceeds of methamphetamine sales during their investigation into Robbins and Kupka.
On May 26, 2018, Robbins and Kupka were arrested on federal warrants while entering Nogales, Arizona, from Mexico at the Nogales-Grand Avenue Port of Entry.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Robbins remains in custody of the United States Marshal pending sentencing. Robbins faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment without the possibility of parole, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated by the Johnson County Task Force, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, Cedar Rapids Police Department, Cerro Gordo Sheriff’s Office, Tama County Sheriff’s Office, Iowa State Patrol, and Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-62-LRR.
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Mexican Man Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used a false identification document to obtain a job was sentenced today to six months in federal prison.
Jose Lopez-Garcia, age 35, a citizen of Mexico illegally present in the United States and living in Cedar Rapids, Iowa, received the prison term after a June 7, 2018, jury verdict finding him guilty of one count of unlawful use of an identification document.
Evidence at trial showed that Lopez-Garcia used a fraudulent permanent resident card, also known as a “green card,” bearing a number assigned to a female born in Cuba in 1934, when he completed an employment form on November 18, 2016, at a business in Cedar Rapids. Lopez-Garcia also used a fraudulent “green card” when he applied for work at another Cedar Rapids business on February 22, 2017.
Lopez-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lopez-Garcia was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Garcia is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-24-LRR.
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