Northern District of Iowa
Press releases recorded for this federal judicial district.
Central City Woman Sentenced to 14 Months in Federal Prison for Defrauding Her GrandfatherRead the Press Release
A Central City Woman who stole her grandfather’s identity to obtain credit cards in his name and make over $27,000 in purchases was sentenced today to 14 months in federal prison.
Jessica Lynn Roloson, 41, received the prison term after an August 11, 2016 guilty plea to one count of Wire Fraud. In a plea agreement, Roloson admitted that, from October 2015 through January 2016, knowing her grandfather’s social security number and date of birth, and living in his former home, Roloson falsely assumed her grandfather’s identity and applied to various credit card companies for accounts under his name, social security number, and former address. The credit card companies issued Roloson credit cards in her grandfather’s name. Roloson used the credit cards on the Internet to fraudulently purchase goods for her own benefit and for the benefit of others. She also made purchases in local stores.
For example, on or about October 29, 2015, Roloson used her grandfather’s name and Social Security number without his permission on an application for a credit card. Then, on or about November 5, 2015, using one of the cards, and using the name of “JLynn Roloson,” defendant caused American Express to wire $205.95 to Victoria’s Secret in Cedar Rapids, Iowa. Defendant did so to obtain property for her personal use, including but not limited to “Pink Yoga Pants,” a “Pink Knit Top,” and a “Bombshell Push Up Brasierre.” As a part of her plea agreement, Roloson agreed to abandon a number of other items that she purchased through her scheme, including a dog kennel, two Dallas Cowboys Zip Up Jackets, two 16 GB iPad mini tablet computers, eyeglasses, a white-and-grey Siberian Husky puppy, a Black Frigidaire refrigerator with side-by-side freezer, a black smooth surface Frigidaire stove, four black office chairs with wheels, a black Frigidaire microware, a black Frigidaire dishwasher, a kitchen sink, an L-shaped desk, a backyard grill, two HP laptop computers with accessories, miscellaneous kitchen utensils, plates, and platters, a pink “selfie stick”, two Bissell cleaners, four Goodyear all-season tires, and a black wire dog kennel.
Evidence at sentencing established that defendant’s grandfather is over 90 years old. He is a WWII veteran, having served under General George S. Patton’s Third Army in the European Theatre. At the time defendant perpetrated her scheme, her grandfather required the use of wheelchair and resided in the Iowa Veteran’s Home in Marshalltown, Iowa. Defendant’s actions adversely affected her grandfather’s credit rating and caused emotional stress upon his elderly wife.
Roloson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. During the sentencing, Judge Reade found that Roloson’s scheme had required significant planning and highlighted the fact that Roloson had yet to pay any restitution. Roloson was sentenced to 14 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make over $27,000 in restitution to various credit card companies and merchants. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The prosecution of Roloson is part of the Department of Justice’s Elder Abuse Initiative. In March 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of ten districts nationwide to launch regional Elder Justice Task Forces. The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The United States Attorney’s Office for the Northern District of Iowa has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect.
Roloson was released on the bond previously set and is to surrender to the United States Marshal on January 9, 2017, at 10:00 a.m.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-43-LRR.
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Iowa Businessman Sentenced to More Than a Year in Prison for Failing to Pay Employment TaxesRead the Press Release
A Forest City, Iowa businessman was sentenced to 13 months in prison yesterday in federal court for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kevin W. Techau for the Northern District of Iowa.
Darrell Smith, 60, was the president and general partner of Energae, which was a minority investor in Permeate Refining LLC., an ethanol-production business in Hopkinton, Iowa. In his position at Energae, Smith had significant control over the finances of Permeate and was responsible for paying over to the Internal Revenue Service (IRS) the employment tax on behalf of Permeate’s employees. From the first quarter of 2011 through the third quarter of 2012, Smith failed to pay over $502,863. After Smith discovered that a subordinate employee had made some payments to the IRS, Smith stopped that employee from making further payments.
On June 22, Smith pleaded guilty to one count of failing to pay employment taxes. In addition to the term of prison imposed, Smith was also ordered to serve two years of supervised release.
“Willful failure to comply with employment tax obligations is a crime,” said Principal Deputy Assistant Attorney General Ciraolo. “Darrell Smith’s jail sentence sends the clear message that the Department will work to ensure that withholdings due to the United States are in fact paid to the Treasury and that honest employers are given the opportunity to compete on a level playing field.”
“Mr. Smith’s failure to pay employment taxes for over a year was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Techau. “Our system and our citizens depend upon employers like Mr. Smith to be honest and pay what they owe in employment taxes. This sentence shows that failing to do so is criminal and there will be consequences.”
“IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
Smith’s co-defendant Randy Less pleaded guilty on June 14 to failing to pay employment taxes and violating the Clean Water Act. Sentencing is scheduled for March 23, 2017.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Techau thanked special agents of IRS-Criminal Investigation, FBI, the U.S. Postal Inspection Service and the U.S. Environmental Protection Agency, who conducted the investigation, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2002.
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Iowa Businessman Sentenced to More Than a Year in Prison for Failing to Pay Employment TaxesRead the Press Release
A Forest City, Iowa businessman was sentenced to 13 months in prison yesterday in federal court for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kevin W. Techau for the Northern District of Iowa.
Darrell Smith, 60, was the president and general partner of Energae, which was a minority investor in Permeate Refining LLC., an ethanol-production business in Hopkinton, Iowa. In his position at Energae, Smith had significant control over the finances of Permeate and was responsible for paying over to the Internal Revenue Service (IRS) the employment tax on behalf of Permeate’s employees. From the first quarter of 2011 through the third quarter of 2012, Smith failed to pay over $502,863. After Smith discovered that a subordinate employee had made some payments to the IRS, Smith stopped that employee from making further payments.
On June 22, Smith pleaded guilty to one count of failing to pay employment taxes. In addition to the term of prison imposed, Smith was also ordered to serve two years of supervised release.
“Willful failure to comply with employment tax obligations is a crime,” said Principal Deputy Assistant Attorney General Ciraolo. “Darrell Smith’s jail sentence sends the clear message that the Department will work to ensure that withholdings due to the United States are in fact paid to the Treasury and that honest employers are given the opportunity to compete on a level playing field.”
“Mr. Smith’s failure to pay employment taxes for over a year was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Techau. “Our system and our citizens depend upon employers like Mr. Smith to be honest and pay what they owe in employment taxes. This sentence shows that failing to do so is criminal and there will be consequences.”
Smith’s co-defendant Randy Less pleaded guilty on June 14 to failing to pay employment taxes and violating the Clean Water Act. Sentencing is scheduled for March 23, 2017.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Techau thanked special agents of IRS-Criminal Investigation, FBI, the U.S. Postal Inspection Service and the U.S. Environmental Protection Agency, who conducted the investigation, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Eight Individuals Sentenced for Trafficking MethamphetamineRead the Press Release
Five men and three women responsible for distributing hundreds of pounds of methamphetamine were sentenced earlier this week to various federal prison terms.
Donita Urban, 47, from Evansdale, Iowa, received a 98-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Scott Mathews, 52, from Marshalltown, Iowa, received a 70-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Brian Swartz, 49, from Waterloo, Iowa, received a 132-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Rogelio Avalos-Sanchez, 23, from Marshalltown, Iowa, received a 59-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Jennifer Mares-Flores, 21, from Marshalltown, Iowa, received a 78-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Miguel Mendoza, 26, from Hampton, Iowa, received a 78-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Alvaro Hernandez, 31, from Marshalltown, Iowa, received a 113-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Frances Gasca, 26, from Lompoc, California, received a 103-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Evidence at the guilty pleas and other court proceedings showed that in the Spring of 2013, Mario Murillo Mora began building a drug trafficking organization responsible for distributing multiple pounds of ice methamphetamine, a highly pure, crystalized form of methamphetamine, throughout Northern Iowa. The various members of the organization distributed at least 250 pounds of ice methamphetamine. Murillo Mora recruited various individuals, including some of the individuals sentenced this week, to assist with transporting, storing, and distributing ice methamphetamine, as well as collecting money and wiring drug proceeds back to the sources of the ice methamphetamine. Other individuals obtained ice methamphetamine from Murillo Mora in pound to multiple pound quantities for redistribution to a network of retail level customers. The organization brought the methamphetamine to Marshalltown from Mexico and California concealed in vehicles. Once in Marshalltown, the methamphetamine was broken down and repackaged for further distribution.
All defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. A special assessment of $100 was imposed on all defendants and they must also each serve a three to five-year term of supervised release after the prison term. There is no parole in the federal system.
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 15-cr-2037.
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Cedar Rapids Man Sentenced to 14 Years in Federal Prison on Firearms ChargesRead the Press Release
A Cedar Rapids man who illegally possessed multiple firearms was sentenced this week to 14 years in federal prison.
Christopher McGee, 22, from Cedar Rapids, Iowa, received the prison term after pleading guilty to two counts of possessing a firearm as a felon. As part of his August 2016 guilty plea, defendant admitted that he knowingly possessed two firearms after having sustained a felony conviction in 2014.
Evidence at this week’s sentencing hearing showed that defendant’s offense involved at least three firearms, that he possessed a firearm in connection with the felony offense of assault while displaying a dangerous weapon, and that in May 2016, he led officers on a high speed chase when they attempted to arrest him. While leading officers on the high speed chase, defendant was carrying a semiautomatic pistol with a high capacity magazine.
McGee was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. McGee was sentenced to 168 months’ imprisonment. He must also serve a 2-year term of supervised release after the prison term. In explaining the sentence, Judge Strand cited McGee’s history of weapons offense, his history of eluding police, and the need to protect the public from further crimes. There is no parole in the federal system. McGee 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 Ravi T. Narayan and investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation (FBI) Safe Streets Task Force. This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-52.
Three Cedar County Men Sentenced to Federal Prison on Meth Manufacturing ChargesRead the Press Release
Last week, three Cedar County men were sentenced to federal prison on methamphetamine manufacturing charges. Telly Ranzenberger and Brian Hagen were sentenced to 60 months’ imprisonment and 48 months’ imprisonment, respectively. In a separate case, Tracey McGhghy was sentenced to 90 months’ imprisonment
Hagen, 43, and Ranzenberger, 42, from Lowden, Iowa, and McGhghy, 48, from Manley, Iowa, received the prison terms after pleading guilty to conspiring to manufacture methamphetamine. At separate plea hearings, each defendant admitted that he entered into a conspiracy to manufacture methamphetamine.
Ranzenberger and Hagen were sentenced in Cedar Rapids by United States District Court Senior Judge Mark W. Bennett. McGhghy was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Each defendant was ordered to serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The cases were prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by the Cedar County Sheriff’s Office. The Cedar County Sheriff’s Office received assistance from the Muscatine County Drug Task Force, the Iowa State Patrol, the Iowa Division of Narcotics Enforcement, and the Johnson County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 16-CR-42 and 16-CR-60
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Federal Prosecutors Recognized for ExcellenceRead the Press Release
CEDAR RAPIDS – The United States Attorney’s Office for the Northern District of Iowa announced today that the Anti-Defamation League (ADL) honored law enforcement heroes for major successes in the fight against domestic and international terrorism, genocide, and war crimes at the seventh annual presentation of the ADL SHIELD Awards at the end of September. The ceremony was held at the National Press Club in Washington D.C. Assistant United States Attorneys Richard Murphy and Ravi Narayan from the Northern District of Iowa were honored at the ceremony, along with Homeland Security Investigations Special Agents Michael Fischels, Andrew Lund, and Frank Hunter; a representative of the U.S. Immigration and Customs Enforcement Human Rights Violators and War Crimes Center; and Homeland Security legal counsel.
The SHIELD Awards annually recognize law enforcement for major achievements in cases related to ADL’s mission and work, including the fight against hate crimes and terrorism and protecting civil rights. It has become one of the premier events honoring law enforcement heroes in the nation.
The award name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.
“The SHIELD Awards give us an opportunity to publicly recognize some of law enforcement’s greatest successes,” said Elise Jarvis, ADL’s Associate Director for Law Enforcement Outreach and Communal Security. “The Awards are a way for us to honor and express our appreciation to those who have protected our nation and its values, and guarded our lives and freedoms.”
United States Attorney Kevin W. Techau stated, “I am very pleased to congratulate Rich and Ravi and the federal partners involved in this significant case. This recognition stems from multiple federal partners working together to ensure justice was achieved.”
The recipients were honored for the investigation and successful prosecution of Gervais (Ken) Ngombwa, formerly of Rwanda and now of Cedar Rapids. Ngombwa was convicted by a jury of naturalization fraud and conspiracy in the United States District Court for the Northern District of Iowa earlier this year.
Evidence presented at trial showed Ngombwa fled Rwanda with relatives during the Rwandan genocide in 1994. The evidence also showed Ngombwa knowingly made several material false statements to procure entry into the United States as a refugee from Rwanda in 1998. Notably, Ngombwa falsely claimed to be the brother of Faustin Twagiramungu, a former Prime Minister of Rwanda, who lives in exile in Belgium.
In evidentiary hearings in advance of formal imposition of sentence, the United States presented the testimony of multiple witnesses, including agents from the Department of Homeland Security who conducted extensive investigation in Rwanda. The testimony included evidence about the 1994 Rwandan genocide, in which hundreds of thousands of people from the Tutsi ethnic group were killed. The evidence showed that Ngombwa was charged and convicted in two local “gacaca” courts in Rwanda for his involvement in the genocide. Ngombwa was implicated by numerous witnesses interviewed in Rwanda as a political leader in his community who actively directed and participated in the commission of genocidal acts. Ngombwa was also named in an Indictment brought in 2010 against Jean Uwinkindi by the United Nations Joint Criminal Tribunal for Rwanda, as a co-participant in a “joint criminal enterprise whose common purpose was the commission of genocide against the Tutsi racial or ethnic group and persons identified as Tutsi or presumed to support the Tutsi[.]” Uwinkindi was convicted of genocide and sentenced to life imprisonment in December 2015.
Ngombwa’s U.S. citizenship has been revoked and he faces a possible maximum sentence of 20 years in prison and eventual removal to Rwanda to face further incarceration and prosecution there. A date for formal imposition of sentence has not been set.
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Local Law Enforcement Officers Honored for Commitment to Drug Abuse PreventionRead the Press Release
Two local police officers are being honored this week by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for their commitment to reducing drug abuse in their communities. The recipients of the 2016 Enrique S. Camarena Award are Officer Al Fear of the Cedar Rapids Police Department and Officer Dustin Lindaman of the Waterloo Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
This year’s award recipients have gone above and beyond the call of duty in pursuit of a drug-free community:
- Through his commitment to reducing drug abuse within both the Northern and Southern Districts of Iowa, Officer Al Fear is a worthy recipient of this distinguished award. Over the past year, Officer Fear developed a robust heroin prevention initiative aimed at educating addicts, health care professionals, educators, students, law enforcement officers, and the general public on the dangers of opioid and heroin abuse. Officer Fear is passionate about preventing the spread of opioid and heroin addiction and making a difference in the lives of individuals addicted to opioids and heroin.
- Through his commitment to educating middle school students and their families about the dangers of drug abuse, Officer Dustin Lindaman is a worthy recipient of this distinguished award. In his position as School Resource Officer for Waterloo Central Middle School, Officer Lindaman has the unique opportunity to build positive relationships with students, to serve as a role model, and to have important conversations with students at a critical time in their development. Through these conversations, Officer Lindaman emphasizes the detrimental impact that drug abuse has on the student and his or her family.
Kevin W. Techau, United States Attorney for the Northern District of Iowa commented on this year’s award recipients, stating, “The communities these officers serve are safer because of their hard work and dedication. They richly deserve the honor of receiving the Enrique S. Camarena award. Officer Lindaman’s work highlights the enormous value of the School Resource Officer program, which places police officers in schools around the state working on drug abuse prevention while promoting school safety. Through his tireless efforts, Officer Lindaman has established a high level of trust with Central students, serving as both a role model to students and an important source of education and information about the dangers of drug abuse. Officer Fear, in conjunction with both law enforcement and community efforts, has led a strong effort to prevent and combat the prescription drug abuse and heroin epidemic across Easten Iowa.”
Darin T. Thimmesch, the Assistant Special Agent in Charge for the DEA also commented on this year’s award, stating, “The DEA is committed to working with our law enforcement partners at all levels to reduce the availability and abuse of illicit drugs in the communities we serve. We are honored to be a part of this distinguished award presentation in memory of fallen DEA Special Agent Enrique S. Camarena. Special Agent Camerena gave his life fighting against the powerful drug cartels in Mexico while trying to protect the country he served from evils of drug distribution and abuse. This award exemplifies the outstanding investigative efforts of these law enforcement officers in disrupting the illegal activities of the drug trafficking organizations operating in and around the Iowa City and Cedar Rapids communities, as well as preventing the further distribution of these highly addictive, deadly drugs.”
The Enrique S. Camarena Award is presented each year during Red Ribbon Week. Red Ribbon Week is an alcohol, tobacco, and drug prevention awareness campaign observed annually in the United States.
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Final Person Sentenced to More Than 8 Years’ Imprisonment in Scheme to Smuggle Guns to LebanonRead the Press Release
Bassem Afif Herz, age 31, from Cedar Rapids, Iowa, was sentenced today following his pleas of guilty to various charges related to a scheme to illegally export hundreds of firearms to Lebanon.
Herz previously pleaded guilty to one count of conspiring to deal in firearms without a license and to illegally ship firearms in interstate and foreign commerce; one count of conspiracy to commit money laundering; and one count of violating the Arms Export Control Act.
The defendant was sentenced by Linda R. Reade, Chief Judge, United States District Court for the Northern District of Iowa, in Cedar Rapids, Iowa, following three prior hearings at which the Court received evidence concerning the sentencing issues.
Herz was sentenced to serve 97 months’ imprisonment, to be followed by a 3- year term of supervised release. Herz was ordered to forfeit $48,575 in proceeds of criminal activity. The forfeiture order was made joint and several with the other defendants in the case.
In sentencing Herz, the Court found the aggravating factors included the defendant’s false testimony that on the day of his arrest he had been beaten up by police officers who also threw his infant son to the floor. The court also noted the large number of guns involved in the schemes, the fact that military style assault rifles were involved, and that some of the guns were shipped to and sold in southern Lebanon in an area controlled by Hezbollah.
Ali Afif Al Herz, the brother of Bassem Afif Herz, was previously sentenced to serve 342 months’ imprisonment.
Adam Al Herz, the son of Ali Afif Al Herz, was sentenced to serve 240 months’ imprisonment, to be followed by a three-year term of supervised release.
Defendant and his relatives were charged following an investigation triggered in early 2014 by a report from a firearms dealer concerning suspicious firearms transactions conducted by the group.
The initial investigation led to the March 2015 seizure of 53 guns and thousands of rounds of ammunition concealed inside Bobcat skid loaders packed inside a shipping container at the Norfolk, Virginia seaport. The container was destined for Lebanon. Subsequent investigation led to the May 2015 seizure of a second shipping container in Cedar Rapids, which was also destined for Lebanon. Ninety-nine guns and thousands more rounds of ammunition were found concealed inside Bobcat skid loaders packed inside the second container. Further investigation disclosed the group had previously sent two similar shipments to Lebanon in March and August 2014. Each of the containers had been loaded and shipped from Midamar Corporation in Cedar Rapids.
The cases were prosecuted by Assistant United States Attorney Richard L. Murphy and were investigated by Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, Federal Bureau of Investigation, and U.S. Customs and Border Protection, with assistance from the Diplomatic Security Service, United States Marshals Service, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Iowa Bureau of Investigation and Identity Protection, Iowa Department of Inspections and Appeals, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Linn County Sheriff’s Office, Vinton Police Department, University of Iowa Police Department, Iowa City Police Department, Cedar Rapids Police Department, Marion Police Department, and Hiawatha Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00054-LRR.
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Iowa Dental Clinic and Its Owners Agree to Pay More Than $300,000 to Resolve Allegations the Clinic Submitted Claims for Unnecessary Procedures or Procedures that Did Not HappenRead the Press Release
Lifepoint Dental Group, LLC, and its owners, Aaron Blass, Angelina Blass, D.D.S., Mindy Richtsmeier, D.D.S., and Brad Richtsmeier, D.D.S., have agreed to pay more than $300,000 to settle allegations that they violated the False Claims Act by submitting claims for dental procedures, including scalings and root planings, that were either medically unnecessary or did not happen. The government’s allegations concern claims submitted by Lifepoint’s Cedar Rapids location between April 1, 2015, and October 1, 2015.
Allegations of wrongdoing were made against the clinic in a qui tam, or whistleblower, lawsuit filed by two former Lifepoint employees. That lawsuit was brought under the False Claims Act, which punishes violators who submit false claims to the government or who knowingly attempt to avoid an obligation to repay federal funds. The whistleblower provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery. The former employees who filed this lawsuit will receive a share of the total amount recovered.
“This settlement demonstrates our office’s continued commitment to ensuring all providers play by the rules and beneficiaries receive the quality of care to which they are entitled,” said United States Attorney Kevin W. Techau. “We are also proud of our cooperation in this matter with federal and state agencies, the citizens who spoke up and filed a qui tam lawsuit alleging wrongdoing, and the clinic and its owners, who cooperated throughout the investigation. We encourage anyone aware of fraud against the government to speak up and work with us to make the system work for providers, taxpayers, and beneficiaries.”
The investigation was led by the State of Iowa Medicaid Fraud Control Unit and conducted jointly with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:16-cv-00049-EJM.
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Cedar Rapids Drug Dealer Sentenced to 30 Years ImprisonmentRead the Press Release
A Cedar Rapids man who was found in possession of marijuana and a firearm was sentenced today to 30 years in federal prison.
Anthony Steven Hall, Jr., 31, from Cedar Rapids, Iowa, received the prison term after a June 14, 2016, jury verdict finding him guilty of three crimes: possession of marijuana with intent to distribute, possession of a firearm by a felon and drug user, and possession of a firearm in furtherance of a drug trafficking crime.
Evidence at trial showed that on April 13, 2015, police conducted a routine traffic stop on a vehicle driven by Hall. Police searched the vehicle and located 63 individually wrapped bags of marijuana and a .40 caliber pistol in the vehicle’s center console. Police also seized a cell phone used by Hall. During the traffic stop, Hall provided police with a false name and date of birth. When police attempted to place Hall under arrest, Hall attempted to flee and physically assaulted one of the police officers. Investigators eventually searched the cell phone and located numerous text messages discussing the distribution of marijuana. Investigators also located cell phone video depicting Hall with a firearm on a previous occasion.
Hall was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hall was sentenced to 360 months imprisonment. A special assessment of $300 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Hall 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 Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-55.
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Bronson Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced December 6, 2016, to twelve years in federal prison.
Andrew Tucker-Moreno, 30, from Bronson, Iowa, received the prison term after an August 24, 2016, guilty plea to one count of conspiracy to distribute methamphetamine.
At the guilty plea, Tucker-Moreno admitted that from about 2015 through March 2016 he and others distributed more than 500 grams of actual (pure) methamphetamine. During a March 2016 search warrant at Tucker-Moreno’s residence in Moville, Iowa, law enforcement officers seized 679 grams of actual (pure) methamphetamine, .25 caliber pistol, two digital scales as well as other indicia of drug trafficking.
Tucker-Moreno was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Tucker-Moreno was sentenced to 144 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Tucker-Moreno 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 Shawn S. Wehde and 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 16-4047. Follow us on Twitter @USAO_NDIA.
Three Webster City Men Charged with Methamphetamine ConspiracyRead the Press Release
Soon Phatdouang, 43; Touy Khamsai, 41 and Van Khamsai, 41 all from Webster City, Iowa, have been charged with one count of conspiracy to distribute methamphetamine. The charges are contained in a Complaint filed on December 1, 2016, in United States District Court in Sioux City.
The Complaint alleges that, from about January 2016, through December 1, 2016, the men conspired together to distribute methamphetamine in the Hamilton County Iowa area. During a number of search warrants executed at the residences of Phatdouang and Touy Khamsai in Webster City on December 1, 2016, law enforcement officers seized approximately 26 pounds of methamphetamine, 30 pounds of marijuana, over $67,000 cash, and eleven firearms.
If convicted, each face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $100 in special assessments, and five years up to life of supervised release following any imprisonment.
Soon, Touy and Van appeared today in federal court in Cedar Rapids and were held without bond.
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 Iowa Department of Narcotics Enforcement, Hamilton County Sheriff’s Department, Webster City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-mj-322.
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Man Who Was a Fugitive for over 13 Years Sentenced to More than 15 Years in Federal PrisonRead the Press Release
A man who absconded from federal pretrial release in 2003 for a federal drug charge in Iowa was sentenced on December 1, 2016, to more than 15 years in federal prison.
Ismael Sanchez-Acevedo, age 39, most recently from Surrey, British Columbia, Canada, received the prison term after an August 18, 2016, guilty plea to one count of possession with intent to distribute 500 grams or more of methamphetamine.
At the guilty plea, Sanchez-Acevedo admitted that in February 2003 he drove from the state of Washington to Iowa with approximately 1 ½ pounds of methamphetamine for resale. Sanchez-Acevedo admitted he hired another man, Kyle Meinecke, to drive him from Washington to Cedar Rapids. Sanchez-Acevedo and Meinecke were found in a Cedar Rapids hotel room on February 3, 2003, after police received complaints of heavy foot traffic to their room. A search of the room revealed over 700 grams of methamphetamine and $2,640 in cash.
Court records reflect Sanchez-Acevedo was charged in federal court on February 7, 2003. He was released to pretrial release on February 17, 2003, and absconded about 10 days later. Court records reflect that Sanchez-Acevedo remained a fugitive until May 20, 2016, when he was arrested in Washington state by Border Patrol. At sentencing, Sanchez-Acevedo said he absconded because he was scared, and that he first fled to California, and then later to Canada. He stated he was returning to Washington in May 2016 to visit his ailing father.
Sanchez-Acevedo was sentenced in Cedar Rapids by Senior United States District Court Chief Judge Mark W. Bennett. Sanchez-Acevedo was sentenced to 188 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Sanchez-Acevedo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 03-CR-00009-MWB.
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Waterloo Man Sentenced to 5 Years for Receiving Child PornographyRead the Press Release
A man who received child pornography was sentenced today to 5 years in federal prison.
Forrest Rindels, age 60, of Waterloo, Iowa, received the sentence after an April 28, 2016 guilty plea to one count of receipt of child pornography. At the plea hearing, Rindels admitted that, between 2001 and 2015, he knowingly received child pornography.
Rindels was sentenced in Cedar Rapids by United States District Court Judge Mark W. Bennett. Rindels was sentenced to 60 months’ imprisonment. A special assessment of $100 was imposed, Rindels was ordered to pay a $1,000 fine, and he must also serve a 7-year 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 the Iowa Division of Criminal Investigation, the Waterloo 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 and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-2006.
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Cedar Rapids Man Sentenced to 11 Years for Enticement of MinorsRead the Press Release
A former school bus attendant who enticed three minors was sentenced today to 11 years in federal prison.
Tyler Konigsmark, age 20, of Cedar Rapids, Iowa, received the sentence after a September 1, 2016 guilty plea to one count of enticement of minors. At the plea hearing and in a plea agreement, Konigsmark admitted that, between April and May of this year, he used Snapchat and his iPhone to request sexually explicit images from three girls, ages 12, 13, and 14, who rode on school buses where he was an attendant. He also admitted that he had sexual intercourse with the 12-year-old girl on two occasions after he used Snapchat and his cell phone to arrange meetings with her.
Konigsmark was sentenced in Cedar Rapids by United States District Court Judge Mark W. Bennett. Konigsmark was sentenced to 132 months’ imprisonment. A special assessment of $5,100 was imposed, and he must also serve a 10-year 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 the Iowa Division of Criminal Investigation, the Hiawatha 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 and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-57.
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Marion Man Sentenced to 20 Years on Child Sexual Exploitation ChargesRead the Press Release
A man who sexually exploited a child, distributed child pornography, and received child pornography was sentenced today to 20 years in federal prison.
Bryan King, age 46, of Marion, Iowa, received the sentence after an August 11, 2016 jury verdict finding him guilty of one count of sexual exploitation of a child, one count of distribution of child pornography, and one count of receipt of child pornography.
The evidence at trial showed that, in October 2014, King persuaded and attempted to persuade, induce, and entice a 15-year-old child to produce an image depicting sexually explicit conduct. The evidence also showed that King distributed this image and an image of another child to another person.
King was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. King was sentenced to 240 months’ imprisonment. A special assessment of $300 was imposed, King was ordered to pay a $10,000 fine, and he must also serve a 5-year 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 the Iowa Division of Criminal Investigation, the Douglas County, Nebraska, Sheriff’s Office, and the Federal Bureau of Investigation.
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 and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-87.
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Three Sentenced to Federal Prison for Palo Bank RobberyRead the Press Release
Two men and one woman, who robbed a bank in Palo, Iowa, in May 2016, have each been sentenced to terms of federal imprisonment.
Lance Monden, age 33 from Cedar Rapids, Stanley Mosley, age 36 from Coralville, and Katherine Pihl, age 39 from Tiffin, each received a term of imprisonment after pleading guilty to one count of bank robbery.
Evidence at sentencing and prior court hearings established that the three robbed the Palo Savings Bank on May 20, 2016. At approximately 2:35 p.m. on that day, Monden and Mosley entered the Palo Savings Bank. Both were wearing black masks and hooded sweatshirts. The two yelled at the employees in the bank and went from teller drawer to teller drawer taking cash. Monden and Mosley spent about one minute in the bank before running out the door.
Pihl was waiting outside the bank with a Ford Taurus to use as a getaway car. After leaving the bank, Monden and Mosley got into the trunk of the Taurus. Pihl then drove the Taurus out of Palo and south towards Cedar Rapids. Witnesses saw Monden and Mosley running from the bank wearing masks and then saw the Taurus leaving the area of the bank and reported this information to 911. About seven minutes after the bank robbery, a deputy with the Linn County Sheriff’s Office stopped the Taurus and found Monden and Mosley hiding in the trunk of the car. Law enforcement recovered all the cash stolen from the bank in the trunk of the car and on the persons of Monden and Mosley.
Monden, Mosley and Pihl were sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Monden was sentenced to 120 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term. Mosley was sentenced to 132 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term. Pihl was sentenced to 24 months’ imprisonment and must also serve a 2-year term of supervised release after the prison term. Each must also pay a $100 special assessment. There is no parole in the federal system.
Monden and Mosley are being held in United States Marshal’s custody until they are transported to a federal prison. Pihl was released on conditions of release previously set and is to surrender to the Bureau of Prisons on December 26, 2016.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-00051.
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Iowa Cancer Clinic and Oncologist to Pay More Than $176,000 to Settle False Claims Act Allegations They Recklessly Billed for Cancer Drugs That Were Unapproved, Misbranded, or Counterfeit and Improperly Upcoded Office Visit ClaimsRead the Press Release
The Hematology and Oncology Center of Iowa, P.C., located in Clive, Iowa, and its only corporate officer, Dr. Magdy Elsawy, have agreed to pay $176,460 to settle allegations that they violated the False Claims Act by submitting false billings for cancer drugs that were not approved, misbranded, or counterfeit, and by submitting office visit claims for visits that were either medically unnecessary or were upcoded to reflect more complex encounters than what actually happened.
The allegations concerning the unapproved, misbranded, or counterfeit cancer drugs relate to drugs the clinic was alleged to have purchased from Medical Device King from February 1, 2012, through June 30, 2012. Earlier this year, on June 2, 2016, the president of Medical Device King, William Scully, was sentenced to 60 months’ imprisonment after a jury found him guilty of 64 felonies for mail and wire fraud, violations of the Food Drug & Cosmetic Act, unlicensed wholesale distribution of prescription drugs, and multiple related conspiracy charges.
“The Northern District of Iowa United States Attorney office is committed to protecting the Medicare program and the taxpayers who help fund it. This settlement will help ensure that our federal health care programs are utilized properly so they continue to serve those who need them most,” said United States Attorney Kevin W. Techau. “Health care providers who cut corners will be held responsible.”
“U.S. consumers and patients rely on the FDA to ensure that the medicines they take are safe and effective; the public’s health is at risk when unapproved, misbranded or counterfeit drugs enter the marketplace,” said Spencer E. Morrison, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to direct our efforts to protecting the public’s health.”
This investigation was led by the Food and Drug Administration and conducted jointly with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Monticello Man Pleads Guilty to Armed Bank RobberyRead the Press Release
A man who robbed the F&M Bank in Monticello on July 29, 2016, pled guilty today in federal court in Cedar Rapids.
Brandon Brown, 45, from Monticello, Iowa, was convicted of armed bank robbery. In a plea agreement, Brown admitted he took more than $4,000 from the F&M Bank by brandishing a weapon and pointing the weapon at a bank employee.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Brown remains in custody of the United States Marshal and will remain in custody pending sentencing. Brown faces a possible maximum sentence of 25 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob Schunk and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-080-LRR.
Man and Woman to Federal Prison for Meth ConspiracyRead the Press Release
A man and woman who conspired with each other and others to distribute methamphetamine were each sentenced to federal prison.
Elyaxel Vasquez, 31, and Ashley Shivers, 31, both from Fort Dodge, Iowa received the prison terms after guilty pleas to conspiracy to distribute methamphetamine.
At the guilty pleas, Vasquez and Shivers both admitted their involvement in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the Fort Dodge, Iowa, area from about 2014 continuing through December 2015. Both were also involved in the distribution of methamphetamine to individuals cooperating with law enforcement.
Vasquez and Shivers were sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Vasquez was sentenced to 126 months’ imprisonment and Shivers was sentenced to 78 months’ imprisonment. A special assessment of $100 was imposed for each. They each must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Vasquez and Shivers are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Department of Narcotics Enforcement, Tri-County Drug Task Force, Webster County Drug Task Force, Fort Dodge Police Department, Webster County Sheriff’s Office, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR15-3047. Follow us on Twitter @USAO_NDIA.
Sumner Man Pleads Guilty to Unlawfully Disposing of the City of New Hampton’s Sewage SludgeRead the Press Release
A northern Iowa man pled guilty yesterday, in federal court in Cedar Rapids, to unlawfully disposing of the City of New Hampton’s sewage sludge.
Donald James Warnke, 64, from Sumner, Iowa, was convicted of one count of unlawfully disposing of sewage sludge from a publically owned treatment works.
At the plea hearing, Warnke admitted that, on June 19, 2015, he knowingly disposed of sewage sludge from a publically owned treatment works. More specifically, Warnke dumped domestic sewage from the City of New Hampton Wastewater Treatment Plant in a field, which violated federal regulations governing the disposal of such sewage sludge.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Warnke remains free on certain conditions of release pending sentencing. Warnke faces up to three years’ imprisonment, a fine of not less than $5,000 but not more than $50,000 per day of violation, a $100 special assessment, and one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Tim Vavricek and Matt Cole and was investigated by the Environmental Protection Agency, Criminal Investigations Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2054-LRR.
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Three Dubuque Men Sentenced to Federal Prison for Illegally Possessing GunsRead the Press Release
Camron Andrew Pete, Jr., 24, received a statutory maximum ten-year prison term after his April 25, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance. At sentencing, Pete admitted he fired shots at an occupied residence in Dubuque in December 2015. Chief Judge Linda R. Reade of the United States District Court found Pete fired the shots, which penetrated the residence, with a high-capacity magazine. Pete also admitted he obstructed justice by attempting to tamper with a grand jury witness.
Reginald Darnell Shaw, Jr., 25, received a 46-month prison term after his April 28, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance and following a misdemeanor conviction for a crime of domestic violence. At sentencing, Shaw admitted he came to Dubuque from Wisconsin to protect Pete and accompanied Pete to the Dubuque shooting with a loaded firearm.
Landon Nathanson-Love, 24, received a 57-month prison term after his April 25, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance. At sentencing, Nathanson-Love admitted to selling Pete and Shaw the firearms that were later used in the shooting. Nathanson-Love had purchased the firearms by means of a fraudulently procured gun permit. Judge Reade found Nathanson-Love obstructed justice by working with a family member to delete a social media account and tampering with a grand jury witness. Judge Reade commended the courage of the witnesses in spite of the attempts to obstruct justice in the cases.
A special assessment of $100 was imposed in each case. All three defendants must also serve a three-year term of supervised release after their respective prison terms. There is no parole in the federal system. All three defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The cases were prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-1011-LRR.
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Maquoketa Man Pleads Guilty to Conspiring to Distribute Heroin and Fentanyl Analogue Resulting in Death and Serious Bodily InjuriesRead the Press Release
A man who conspired to distribute a mixture containing heroin and a drug called furanylfentanyl to one individual who died and two others who were seriously injured pled guilty today in federal court in Cedar Rapids.
Joshua Allen Manning, age 22, from Maquoketa, Iowa, was convicted of one count of conspiracy to distribute heroin and furanylfentanyl resulting in death and serious bodily injury.
At the plea hearing, Manning admitted he agreed to distribute the substances during March 2016. Manning admitted two individuals suffered serious bodily injury and another died after using the substances on March 3, 2016. Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is illegal to distribute them just as it is to distribute substances such as cocaine, heroin, and marijuana. Furanylfentanyl is a powerful synthetic opioid, and is an analogue of fentanyl.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Manning remains in custody of the United States Marshal pending sentencing. Manning faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case is being investigated by the Dubuque Drug Task Force, Maquoketa Police Department, and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and is being 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 16-CR-01031-LTS.
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Former Marion Investment Broker Sentenced to Two More Years in Federal Prison After Obstructing Justice During His Prior Criminal ProsecutionRead the Press Release
A former investment broker who was previously sentenced to more than nine years’ imprisonment for defrauding his investment clients was sentenced today to two more years in federal prison for obstructing justice during the course of proceedings related to his fraud prosecution.
Randy Beltramea, age 52, from Marion, Iowa, received the additional prison term after a guilty plea to four counts of obstruction of justice.
At the guilty plea hearing, Beltramea admitted that, after the government instituted forfeiture proceedings to forfeit his interest in property he purportedly obtained from fraudulent activity, he took unlawful steps to obstruct the forfeiture proceedings by accepting payments for and placing a mortgage on property that had been identified as forfeitable.
Beltramea was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Beltramea was sentenced to 24 months’ imprisonment. A special assessment of $400 was imposed. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Jacob Schunk 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 1:14-cr-00095-LRR.
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Black Diamond Dog Kennel Owner Sentenced for Making False StatementsRead the Press Release
CEDAR RAPIDS, IA – A northwest Iowa man who owed a monetary penalty to the United States for numerous violations of animal welfare regulations at his kennel was sentenced today to 3 years’ probation for lying to the government about his assets and income.
Gerhard (“Gary”) Felts, age 61, from Kingsley, Iowa, was sentenced after a July 13, 2016 guilty plea to one count of making false statements to the United States.
A plea agreement and sentencing records show that Felts has operated Black Diamond Kennel since 1998. In 2010, he obtained his Class A license from the United States Department of Agriculture (USDA). The USDA conducted 17 inspections since then, finding Felts had 51 noncompliant items, including inadequate veterinary care, as well as inadequate housing, cleaning, sanitation and housekeeping. As a result of these violations, USDA obtained an $18,938 administrative penalty against Felts.
Felts failed to pay this administrative penalty and the United States obtained a civil judgment against him in order to collect the penalty. During the collection process, defendant lied to the government about his bank accounts and his income from a workers’ compensation settlement. Specifically, Felts failed to disclose a checking account he opened in April 2011, a savings account opened in April 2013, and his receipt of $25,000 worth of worker’s compensation payments in April 2013. Once defendant received his workers’ compensation settlement, he used the money to expand his kennel rather than paying his administrative penalty. Felts currently owes $13,382.70 on his administrative penalty.
Felts was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Felts was sentenced to 3 years’ probation with a special condition that requires him to stay current on monthly payments to USDA. The court also ordered that, should he not be debarred from serving as a federally licensed dealer under the Animal Welfare Act, Felts must comply with all applicable federal, state, and local regulations and laws regarding his license and care of animals including but not limited to the Animal Welfare Act. A special assessment of $100 was also imposed.
“The United States takes very seriously its obligation to collect debts from those who violate the Animal Welfare Act. False statements in that process will not be tolerated,” stated United States Attorney Kevin W. Techau. “The Animal Welfare Act’s purpose is to protect animals and those who violate it and are ordered to pay penalties will not be allowed to avoid those consequences by lying to the government. We strongly recommend that the Animal and Plant Health Inspection Service debar Mr. Felts from operating as a federally licensed dog breeder and dealer. Mr. Felts was penalized because of more than a dozen violations of animal welfare regulations and then lied to avoid the repercussions of his actions. His failure to care for his animals and this conviction demonstrate that he should be debarred in order to safeguard the welfare of his animals.”
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by U.S. Department of Agriculture. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-cr-49.
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Peosta Warehouse Supervisor Sentenced to 78 Months in Federal Prison for Stealing over $400,000 from his Employer and Lying to a Credit UnionRead the Press Release
A Dubuque-area man, who stole and sold over $400,000 worth of his employer’s goods on the Internet, was sentenced today to 78 months’ imprisonment.
Chad Michael Saeugling, 40, from Asbury, Iowa, received the prison term after his pleas of guilty on June 8, 2016 to one count of Mail Fraud and two counts of Making a False Statement to a Financial Institution.
At his plea hearing and in a written plea agreement, Saeugling admitted he was employed as a supervisor at a Peosta, Iowa, warehouse between 2004 and 2014. From 2009 through August 2014, Saeugling defrauded his employer by selling his employer’s goods on the Internet. Specifically, Saeugling advertised goods found in his employer’s warehouse on eBay, an Internet marketplace. Once an eBay shopper paid defendant for an item, Saeugling placed his own UPS or FedEx shipping label on the item and put the item on a UPS or FedEx truck, hiding the item among items his employer was shipping. Saeugling then used his access to a computerized inventory system to falsely adjust the stolen item out of his employer’s inventory to avoid detection.
Shortly after Saeugling’s mail fraud scheme was discovered, Saeugling agreed to purchase a house from his father. In order to secure a home mortgage loan for the property in late 2014, Saeugling made a false statement concerning his income to a federally insured credit union. Saeugling also falsely told the credit union that his father had gifted him $22,000 to purchase the home when, in truth, Saeugling had previously supplied his father with the $22,000, in cash, which his father then routed through two different bank accounts before providing the $22,000 in two $11,000 checks to Saeugling at the time of closing on the home.
At sentencing, Chief Judge Linda R. Reade of the United States District Court for the Northern District of Iowa found defendant “spit in his employer’s eye” and led his own father in criminal activity. The judge rejected Saeugling’s claim that a bank official had told him to route funds through his father in two different accounts. The judge found Saeugling had “no credibility” and “no conscience,” and his criminal activity would have continued were it not for the courage of one of his coworkers at the warehouse. Further, the judge found Saeugling had violated the terms of his release pending sentencing by possessing firearms and ammunition, which he was selling to his coworkers at his workplace. The judge concluded Saeugling was at an “extremely high risk to reoffend.”
Saeugling was sentenced in Cedar Rapids and sentenced to 78 months’ imprisonment. A special assessment of $300 was imposed, and he was ordered to make $423,025.52 in restitution his employer’s insurer. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Saeugling 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 Tim Vavricek and investigated by the Dubuque County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-1023-LRR.
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Third Person Sentenced in Scheme to Smuggle Guns to Lebanon is Ordered to Serve 342 Months in Federal PrisonRead the Press Release
Ali Afif Al Herz, age 51, from Cedar Rapids, Iowa, was sentenced today and following his plea of guilty to various charges related to a scheme to illegally export hundreds of firearms to Lebanon.
Al Herz previously pleaded guilty to one count of conspiring to deal in firearms without a license and to illegally ship firearms in interstate and foreign commerce; one count of conspiracy to commit money laundering; and one count of violating the Arms Export Control Act. In addition, Al Herz previously pleaded guilty to one count of possessing firearms after having previously been convicted of a crime of domestic violence.
Al Herz was sentenced by Linda R. Reade, Chief Judge, United States District Court for the Northern District of Iowa, following sentencing proceeding held in Cedar Rapids. The court heard evidence relating to the sentencing on October 14, 2016, and reconvened today to hear additional evidence and impose sentence.
Al Herz, was sentenced to serve 342 months’ imprisonment, to be followed by a 3 year term of supervised release. Al Herz was was ordered to pay a fine of $150,000.
Adam Al Herz, the son of Ali Afif Al Herz, was sentenced on October 13, 2016, to serve 240 months’ imprisonment, to be followed by a three-year term of supervised release.
Ali Afif Al Herz’s sister in law, Sarah Majid Zeaiter, was sentenced on October 14, 2016, to serve 87 months’ imprisonment. Zeaiter was also ordered to pay $33,869 in cash related to the scheme. The money was seized from the apartment Zeaiter shared with her husband, Bassem Herz, above the Pizza Daddy restaurant in Cedar Rapids, Iowa.
Each of the three sentenced defendants has also been jointly and severally ordered to pay a money judgment in excess of $48,000, and to forfeit any interest in seized firearms, ammunition, and Bobcat skid loaders.
Evidence related to the sentencing of Bassem Afif Herz was presented on October 13 & 14, 2016, in Cedar Rapids. The sentencing hearing for Bassem Afif Herz will resume on November 7, 2016, at which time Bassem Herz will be sentenced.
The four were charged following an investigation triggered in early 2015 by a report from a firearms dealer concerning suspicious firearms transactions conducted by the group.
The initial investigation led to the March 2015 seizure of 53 guns and thousands of rounds of ammunition concealed inside Bobcat skid loaders packed inside a shipping container at the Norfolk, Virginia seaport. The container was destined for Lebanon. Subsequent investigation led to the May 2015 seizure of a second shipping container in Cedar Rapids, which was also destined for Lebanon. Ninety-nine guns and thousands more rounds of ammunition were found concealed inside Bobcat skid loaders packed inside the second container. Further investigation disclosed the group had previously sent two similar shipments to Lebanon in March and August 2014. Each of the containers had been loaded and shipped from Midamar Corporation in Cedar Rapids.
Evidence presented at the sentencing hearings showed the containers were destined for an area in southern Lebanon controlled by Hezbollah, a group designated by the United States as a terrorist organization. Among the guns shipped were more than 30 military style assault rifles. Other evidence presented in the case showed the guns could be sold in Hezbollah controlled southern Lebanon, where Ali Afif Al Herz maintains a residence, for as much as ten times their value in the United States. Photos of the residence and of some of the weapons and ammunition seized during the investigation are attached to this press release.
During sentencing, Chief Judge Reade found Al Herz was a leader and organizer of the criminal activity involving five or more participants and that “was otherwise extensive.” Judge Reade also noted there were several aggravating factors including that the offense involved numerous military style assault rifles, the defendant had sought to purchase fully automatic weapons, the number of guns involved, and the fact the guns were knowingly being shipped to an area of the world controlled by a terrorist organization.
Kevin W. Techau, United States Attorney for the Northern District of Iowa stated, “These defendants were bold and brazen gun traffickers. They knew they were violating U.S. laws enacted to prevent smuggling to foreign countries. Stopping the illegal flow of weapons, weapons parts, and ammunition is a key priority for law enforcement.”
“We are especially thankful to the citizens of Iowa who assisted law enforcement by providing tips and leads that resulted in an investigation of an international weapons smuggler by Homeland Security Investigations,” said Alex Khu, Special Agent in Charge for HSI St. Paul, which oversees Iowa. “This investigation exemplifies the importance of maintaining strong ties to the communities that law enforcement serves, and that law abiding citizens can truly make a difference by reporting suspicious activities. Had law enforcement not intervened, Mr. Al Herz would have exported a large number of weapons that could have been used in countless crimes. HSI is committed to investigating and seeking charges against those intent on violating U.S. export laws.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice. This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results,” said Jeff Fulton, Special Agent in Charge of ATF’s Kansas City Field Division.
“The joint effort to bring this case to a successful conclusion undoubtedly saved lives due to the number and types of weapons recovered during the course of the investigation. The FBI will continue to work with our law enforcement partners to combat violent criminal activity and protect our communities,” stated Special Agent-in-Charge Randall Thysse, Omaha Division.
The cases were prosecuted by Assistant United States Attorney Richard L. Murphy and were investigated by Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, Federal Bureau of Investigations, and U.S. Customs and Border Protection, with assistance from the Diplomatic Security Service, United States Marshals Service, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Iowa Bureau of Investigation and Identity Protection, Iowa Department of Inspections and Appeals, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Linn County Sheriff’s Office, Vinton Police Department, University of Iowa Police Department, Iowa City Police Department, Cedar Rapids Police Department, Marion Police Department, and Hiawatha Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00054-LRR.
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Two Individuals to Federal Prison for Meth ConspiracyRead the Press Release
A man and woman who conspired to distribute methamphetamine were each sentenced to 10 years in federal prison.
Beatriz Roman-Luna, 33, from Paulina, Iowa, received the prison term after a June 22, 2016, guilty plea. Jose Gomez-Trujillo, 30, from Mexico, received the prison term after a July 6, 2016, guilty plea. Both pled guilty to one count of conspiracy to distribute 50 grams or more of actual (pure) methamphetamine and two counts of distribution and aiding and abetting another in the distribution of 5 grams or more of actual (pure) methamphetamine. Gomez-Trujillo also pled guilty to illegally being in the United States.
At the guilty pleas, Roman-Luna and Gomez-Trujillo admitted that from the beginning of 2016 through February 2016, they conspired together to distribute methamphetamine to others in Iowa. On two occasions in February 2016, they distributed approximately ¾ of a pound of methamphetamine to individuals cooperating with law enforcement.
Both were sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Each were sentenced to 120 months’ imprisonment. Special assessments of $300 were imposed for Roman-Luna and $400 for Gomez-Trujillo. They must each also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Each are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and 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 16-4036.
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Jamaican National Arrested in Alleged Scheme to Defraud Elderly Illinois CoupleRead the Press Release
Ricardo Fredrick Smith a/k/a “Rickey Ricardo Smith” a/k/a “Ricky”, 38, from St. James Parish, Jamaica, has been charged with Mail Fraud, Conspiracy to Commit Mail Fraud, and Money Laundering. The charges are contained in a Complaint unsealed today in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about October 2015, Smith was working at a local lawn care company in the Cedar Rapids area and opened a bank account at a local financial institution. A week later he allegedly added a co-conspirator to the account as a joint owner. The co-conspirator then allegedly deposited $13,000 into this joint account by means of a check drawn on an account of an elderly Illinois woman. Smith and the co-conspirator allegedly received the $13,000 through a mail fraud scheme in which they were allegedly participating. In the following weeks, Smith and the co-conspirator allegedly made a series of cash withdrawals from the account.
If convicted on all charges, Smith faces a possible maximum sentence of 60 years’ imprisonment, a $750,000 fine or not more than twice the gross gain or twice the gross loss from the offenses, whichever is greater, $300 in special assessments, and 3 years of supervised release following any imprisonment.
Smith appeared today in federal court in Cedar Rapids and was held without bond. Smith’s next appearance for a detention hearing is on November 2, 2016, at 4:30 p.m., in Cedar Rapids.
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 Tim Vavricek and was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-mj-265.
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Iowa City Head Shop Owner Pleads Guilty to Conspiring to Distribute Synthetic DrugsRead the Press Release
The former owner of Zombies, a head shop in Iowa City, pled guilty today in federal court in Cedar Rapids.
Hadi Sharairi, age 45, from Coralville, Iowa, was convicted of one count of conspiring to distribute drugs called AB-FUBINACA and THJ-2201 between February and May 2014. AB-FUBINACA was a Schedule I controlled substance and THJ-2201 was a controlled substance analogue during that time period. Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is unlawful to distribute them just as it is illegal to distribute substances on the controlled substance schedules, such as cocaine, heroin, or marijuana.
Testimony at a hearing on June 21, 2016, showed Sharairi was the former owner of Zombies, a head shop located in Iowa City. An officer testified that Sharairi was warned by the Iowa City Police Department in June 2013 not to sell synthetic cannabinoid products (commonly known as “K2,” “Spice,” or “incense”). In May 2014, however, law enforcement searched Zombies and a storage unit associated with the business and found packages labeled “Bizarro,” which contained THJ-2201, and other packages labeled “Super Nova,” which contained AB-FUBINACA.
The investigation of Sharairi and raids of his business, home, and other related locations in May 2014 were a part of a coordinated DEA takedown called Project Synergy Phase II. The second phase of Project Synergy, which began January 2014, culminated on May 7, 2014, in 29 states, and involved more than 45 DEA offices serving nearly 200 search warrants. On that date, authorities seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sharairi was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Sharairi faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case was investigated by the Iowa City Police Department and 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 Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service – Criminal Investigation. The case is being 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 16-CR-48-1-LTS.
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Northeast Iowa Man Pleads Guilty to Possessing BombsRead the Press Release
A man who unlawfully possessed three pipe bombs and a pressure cooker bomb pled guilty on October 24, 2016, in federal court in Cedar Rapids.
Trevor Satrom, age 34, from Oran, Iowa, was convicted of one count of possessing unregistered explosive bombs.
In a plea agreement, Satrom admitted that on February 10, 2016, law enforcement searched his residence in Oran, Iowa. During the search, police seized assorted length metal pipes, metal end caps sized for the pipes, three metal end caps with holes made in the end, a pressure cooker with a hole made on the top, hobby fuse of various lengths, various types of propellant powder, and packages of BBs. Satrom further admitted that, together, these items could readily have constituted three fully operational pipe bombs and one fully operational pressure cooker bomb.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Satrom remains in custody of the United States Marshal pending sentencing. He faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tony Morfitt and was investigated by the Fayette County Sheriff’s Office, the Iowa Division of Criminal 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 16-CR-2016.
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Cedar Rapids Woman Sentenced to Federal Prison for Defrauding Elderly Couple Out of More than $100,000Read the Press Release
A woman who defrauded an elderly couple out of more than $100,000 was sentenced yesterday to nearly three years in federal prison.
Tea Lynette Ware, 37, from Cedar Rapids, Iowa, received the prison term after a June 9, 2016 guilty plea to two counts of mail fraud and one count of using a fictitious name in mail fraud.
At the plea hearing, and in a plea agreement, Ware admitted that from about September 2015 through February 2016, Ware participated in a scheme to defraud an elderly Illinois woman during which the victim was falsely told she had won a lottery and was entitled to large sums of money. The victim was also told the winnings or funds could be claimed only if she first mailed Ware money for purported taxes or fees. In truth, no such winnings existed and the calls were designed only to steal from the victim and her husband, a resident of a long-term care facility with dementia. Like many senior citizens in the United States, the couple received unsolicited telephone calls; they even changed their telephone number to avoid unsolicited calls, but such calls nonetheless resumed after they changed their phone number.
At sentencing, United States District Court Chief Judge Linda R. Reade called Ware’s behavior “despicable”, noting that she had preyed on her victims, who were vulnerable not only because they were elderly but also due to their mental health conditions. Further, the judge found Ware caused her victims a substantial financial hardship, as she “picked” her victims “clean.” The judge noted that, due to age and infirmity, the victims’ earning years were over, and their life savings were now depleted.
Ware was sentenced in Cedar Rapids to 33 months’ imprisonment. A special assessment of $300 was imposed, and she was ordered to make $108,100 in restitution to her victims. Further, Ware forfeited $40,000 that the government seized prior to Ware’s Indictment. Ware must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“Whether abuse occurs in nursing homes or involves financial fraud schemes such as the one in which Ms. Ware participated, this office and the Elder Justice Task Force are committed to pursuing justice for the elderly,” said United States Attorney Kevin Techau. “We will continue to work with our partners to hold accountable those who seek to financially exploit the most vulnerable in our society. I wish to thank the Postal Inspection Service and the FBI for their hard work investigating this case.”
“The US Postal Inspection Service is committed to ensuring that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Craig Goldberg of the Denver Division, which covers multiple states including Iowa. “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who unknowingly fall prey to these schemes. We cannot allow fraudsters to utilize the U.S. mail to further their schemes.”
In June, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/
Ware was released on the bond previously set and is to surrender to the United States Marshal in Cedar Rapids on November 14, 2016. Thereafter she will be transferred to federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-27-LRR.
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Vinton Woman Who Provided Rifle Used in Fatal Shooting Sentenced to 46 Months ImprisonmentRead the Press Release
A woman who illegally provided a rifle to her minor child was sentenced today to more than three years in federal prison.
Robyn Lynn Merchant, a/k/a Robyn Lynn Winterroth, 53, from Vinton, Iowa, received the prison term after a May 23, 2016, guilty plea to transferring a firearm to a prohibited person (a drug user).
Evidence at the guilty plea hearing and other court proceedings showed that on February 23, 2015, Merchant provided her 16-year-old son with a Walther HK MP5 .22 caliber rifle. The following day, police responded to Merchant’s residence in Vinton after receiving a 911 call that a shooting had taken place. When police arrived, they discovered that a 14-year-old girl had been shot in an upstairs bedroom. That bedroom belonged to Merchant’s 16-year-old son. Merchant’s son was present in his bedroom at the time of the shooting. Also present in the bedroom were two additional 16-year-old males. The 14-year-old girl eventually passed away as a result of the gunshot wound.
At the time Merchant provided her son with the firearm, he was an unlawful user of marijuana. Her son regularly used marijuana in Merchant’s home, and a urine sample obtained from him the night of the shooting tested positive for marijuana. The night of the shooting, police saw evidence of recent drug and alcohol use in plain view in Merchant’s son’s bedroom. Police eventually seized a marijuana smoking pipe, drug paraphernalia, approximately seven ounces of marijuana individually packaged into eight separate plastic bags, and drug packaging materials from the bedroom.
During the investigation, law enforcement learned that Merchant and her son conspired with each other to distribute marijuana from their residence. Some of their customers included other high school students who were friends of Merchant’s son.
Merchant was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Merchant was sentenced to 46 months imprisonment. A special assessment of $100 was imposed. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“From any perspective, this case is a terrible tragedy,” said U.S. Attorney Kevin W. Techau. “A 14-year-old girl is dead – and a mother is going to prison – because the mother provided her drug-using son with a gun. This case demonstrates why guns and drugs are a deadly combination.”
Merchant is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Vinton Police Department, the Iowa Department of Public Safety, the Department of Homeland Security, United States Immigration and Customs Enforcement, Homeland Security Investigations, and the Bureau of Alcohol Tobacco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-0017.
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United States Attorneys Announce Election Day ProgramRead the Press Release
United States Attorneys Kevin W. Techau and Kevin E. VanderSchel of the Northern and Southern Districts of Iowa, respectively, announced today that Daniel Tvedt and Virginia Bruner will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. These Assistant United States Attorneys have been appointed to serve as District Election Officers for the Northern and Southern Districts of Iowa, and in that capacity are responsible for overseeing the handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney VanderSchel said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
United States Attorney Techau said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorneys Techau and VanderSchel stated that District Election Officers will be on duty in the Northern and Southern Districts while the polls are open. They can be reached by the public at the following telephone numbers: (319) 363-6333 (Cedar Rapids) and (515) 473-9300 (Des Moines).
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (319) 366-2461 (Cedar Rapids) or (515) 223-4278 (Des Moines).
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Omaha Woman to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced October 24, 2016, to 10 years in federal prison.
Elizabeth Lopez, 30, from Omaha, NE, received the prison term after a May 26, 2016, jury verdict finding her guilty of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
Evidence at trial showed that Lopez conspired to distribute 50 grams or more of actual (pure) methamphetamine from 2015 through August 2015 in the Sioux City, Iowa area. The evidence also showed that on August 4, 2015, Lopez had traveled from Omaha, NE to Sioux City, IA to distribute approximately one ounce of actual (pure) methamphetamine. Lopez had hidden the methamphetamine in her bra.
Lopez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Lopez was sentenced to 120 months’ imprisonment. A special assessment of $200 was imposed. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Lopez is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and 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 15-4051. Follow us on Twitter @USAO_NDIA.
Discard Unwanted Drugs: DEA’s Pill Take Back DayRead the Press Release
CEDAR RAPIDS, IA – On Saturday, October 22, from 10 a.m. to 2 p.m. the Drug Enforcement Administration (DEA) will give the public its 12th opportunity in six years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Cedar Rapids and Dubuque are hosting sites. In Cedar Rapids, bring your pills for disposal to the police department located at 515 1st Street S.W. In Dubuque, the drop off site is located at the Sam’s Club parking lot, 4400 Ashbury Road. The drop off sites cannot accept liquids or needles or sharps, only pills or patches. The service is free and anonymous, no questions asked.
Last April, Americans turned in 447 tons (over 893,000 pounds) of prescription drugs at almost 5,400 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 11 previous Take Back events, DEA and its partners have taken in over 6.4 million pounds—about 3,200 tons—of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
United States Attorney Kevin W. Techau stated, “In 2015 alone, more than half of the over 40,000 unintentional drug overdose deaths in the United States involved prescription drugs, and hazardous opioid pain relievers led to about 17,000 of those deaths. Young people are especially susceptible to these dangers. Nearly four in 10 teens who have misused or abused a prescription drug obtained it from their parents’ medicine cabinet. Clearly prescription drug addiction and abuse represent nothing less than a public health crisis. We appreciate DEA’s effort to remove this poison from homes so that it does not end up in the wrong hands.”
For more information about DEA’s drug diversion program efforts and the disposal of prescription drugs go to: https://www.deadiversion.usdoj.gov.
Those unable to participate next Saturday are offered year around opportunities in Iowa to discard unused, expired and unwanted medications at locations around the state. To find those sites, go to the Iowa Governor’s Office of Drug Control Policy: https://odcp.iowa.gov/rxtakebacks.
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Area’s Second Annual “Day of National Concern” Addresses Young People and ViolenceRead the Press Release
CEDAR RAPIDS, IOWA – Local middle and high school students are joining thousands of others from around the country this week in pledging to do their part to end gun violence. The United States Attorney’s Office for the Northern District of Iowa, the Cedar Rapids and Marion Police Departments, and the Linn County Sheriff’s Office are partnering with about 10 local middle and high schools to promote discussion of the impact of violence on youth in observance of the 20th annual Day of National Concern.
The Day of National Concern was established in 1996 through a Presidential Proclamation and Unanimous Senate Resolution. The cornerstone of the initiative is the signing of a pledge in which students promise to never use a gun or violence to settle a personal dispute and to use their influence to keep their friends from doing the same. Nationwide, the pledge is often combined with school assemblies, homeroom activities, guest speakers, rallies, essay and poetry contests, displays of art work publicizing the toll of gun violence, and the beginning of many conversations about gun violence between students and adults.
Locally, many schools are inviting guest speakers to talk with students, having students submit written reflections about gun violence in the form of a poem, song, or short story, or hosting a lunch with the United States Attorney. Several Assistant United States Attorneys and other local law enforcement officials will attend and speak at many of the events.
Kevin W. Techau, U.S. Attorney for the Northern District of Iowa, stated, “We are proud to partner with the Cedar Rapids and Marion Police Departments, Linn County Sheriff’s Office, and the Cedar Rapids, Marion, and College Community schools in the second Iowa observation of the Day of National Concern. The NO Gun pledge and the discussion it generates in our area schools will have a positive impact in our community. The Cedar Rapids and Marion area students are to be commended for taking the positive step of saying no to guns in schools.”
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Iowa Farmer Sentenced to Federal Prison for Farm Loan FraudRead the Press Release
An Iowa farmer who pledged assets as collateral for a United States Department of Agriculture (USDA) farm operating loan but later sold the assets and subsequently defaulted on the loans was sentenced today to six months’ in federal prison.
Leroy Jones, age 59, from Floyd, Iowa, received the sentence after a guilty plea to one count of conversion of property pledged to a farm credit agency.
At the guilty plea, Jones admitted that he pledged over 100,000 bushels of corn worth more than $300,000 to the USDA as security on two Farm Services Agency loans worth nearly $200,000. Jones further admitted that over the course of the next year he sold all of the grain he had pledged without notifying the USDA and that he did so with intent to defraud that agency. Court records show that Jones had actually sold over 10,000 bushels of corn before he had even pledged that corn as collateral.
Jones was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. He was sentenced to six months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $137,682.20 in restitution to the Farm Service Agency. Jones must also serve a two-year term of supervised release after his prison term. Because Jones was convicted of a felony, he can no longer legally possess firearms or ammunition.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the United States Department of Agriculture.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 16-CR-2026.
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Cedar Rapids Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Michael Bordman, age 22, of Cedar Rapids, Iowa, has been charged with sexual exploitation of a child and distribution, receipt, and possession of child pornography. The charges are contained in an Indictment unsealed on October 7, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between August 2015 and July 2016, Bordman sexually exploited a child and distributed, received, and possessed child pornography.
If convicted, Bordman faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 90 years’ imprisonment, a $1,000,000 fine, a $400 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Bordman appeared for a detention hearing on October 11, 2016, in federal court in Cedar Rapids and was held without bond. Bordman’s next appearance for trial is set for December 12, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department, the Iowa Division of Criminal Investigation, and Homeland Security Investigations.
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 and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-81.
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Jury Finds Sioux City Man Guilty of Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was convicted by a jury on October 7, 2016, after a 2 ½-day trial in federal court in Sioux City.
Kevin Babb, 55, from Sioux City, Iowa, was convicted of one count of conspiracy distribute 50 grams or more of actual (pure) methamphetamine and three counts of distribution of methamphetamine. The verdict was returned this afternoon following about one hour of jury deliberations.
The evidence at trial showed that Babb was involved in a conspiracy that distributed methamphetamine in the Sioux City area from 2012 through 2014. On three separate occasions between April and July 2014, evidence showed that Babb sold methamphetamine to individuals cooperating with law enforcement.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Babb remains in custody of the United States Marshal pending sentencing. Babb faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $400 in special assessments, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Nathan W. Nelson 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 16-4041. Follow us on Twitter @USAO_NDIA.
Former Iowa City Head Shop Owner Sentenced to 30 Years in Federal Prison for Selling Synthetic DrugsRead the Press Release
A man who owned and operated a head shop in Iowa City in 2014 was sentenced yesterday to 30 years in federal prison.
Robert Carl Sharp, age 37, from Peoria, Illinois, received the prison term after an October 5, 2015 guilty plea to three counts of possessing with intent to distribute and conspiring to manufacture and distribute a synthetic drug called AB‑FUBINACA.
Court documents reflect that in 2012, in Peoria, Illinois, Sharp began selling, and later manufacturing, smokeable synthetic cannabinoid products which are commonly known as “Spice,” “incense,” or K2. Sharp sold these products in packets that marketed the substances as incense, and contained a warning that the products were “not for human consumption,” although Sharp knew the products were actually intended for human consumption. The synthetic cannabinoids in these products were actually research chemicals that have not been tested or approved as safe for human consumption, and which have unpredictable short-term effects and unknown long-term effects on users.
Sharp eventually moved to Iowa and opened a head shop called Pipe Dreamz in downtown Iowa City. He employed another individual, Wayne Watkins, to manufacture synthetic cannabinoid products called “Gods of Aroma,” “Bizarro,” “AK-47 Cherry Popper,” “Bling Bling Monkey,” “Super Nova,” and “Darkness.” Sharp would order synthetic cannabinoid chemicals and also purchase bulk quantities of dried damiana leaves, a plant material that resembles dried marijuana. Watkins would dilute the synthetic cannabinoid chemical in acetone, and then spray the mixture on the damiana leaves. Watkins would then add some flavoring and package the substances into the various brands sold by Sharp.
On May 7, 2015, Sharp’s store, his house and storage unit in Center Point, along with Watkins’s house in Cedar Rapids, and the Pipe Dreamz store in Iowa City, were all searched by federal law enforcement. During the searches, officers seized thousands of synthetic cannabinoid products, including the sprayed-on plant variety and a liquid form of the synthetic cannabinoids that was designed for use in e‑cigarettes. Officers seized an active manufacturing lab in Watkins’s house.
At the plea hearing, Sharp stated he was told by the individuals from whom he purchased the substances that he was buying legal chemicals. He admitted at the plea hearing, however, that despite those statements from his suppliers, he believed there was a high probability that the substances he received and distributed were regulated by federal drug laws, but took deliberate actions to avoid learning of the true identity of the substances by not having them tested by a laboratory.
Sharp was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Sharp was sentenced to 360 months’ imprisonment. A special assessment of $300 was imposed. Sharp was also ordered to pay forfeiture of $200,000 that represented proceeds of his drug dealing. He must also serve a 3‑year term of supervised release after the prison term. There is no parole in the federal system. Watkins was previously sentenced to 115 months’ imprisonment.
The investigation of Sharp and raids of his business, home, and other related locations in May 2014 were a part of a coordinated DEA takedown called Project Synergy Phase II. The second phase of Project Synergy, which began January 2014, culminated on May 7, 2014, in 29 states, and involved more than 45 DEA offices serving nearly 200 search warrants. On that date, authorities seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized.
Sharp 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 Iowa City Police Department and 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 Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-31-1-LRR.
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Cedar Rapids Heroin Dealer Enters Guilty PleaRead the Press Release
A Cedar Rapids man who distributed heroin and fentanyl that resulted in a young woman being hospitalized pled guilty yesterday in federal court in Cedar Rapids.
Shawn Albert, age 24 from Cedar Rapids, Iowa, was convicted of distributing heroin on September 27, 2015.
At the plea hearing, Albert admitted he distributed heroin to another person and that individual overdosed and was hospitalized.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Albert remains in custody of the United States Marshal pending sentencing. Albert faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and a minimum of 3 years of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert 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 Cedar Rapids Police Department and 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 16-00053.
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Man Convicted of Racially Motivated Hate Crime Sentenced to Maximum Term of ImprisonmentRead the Press Release
A man who repeatedly stomped on and kicked the head of an African American man in a racially targeted attack was sentenced today to 10 years in federal prison.
Randy Metcalf, 40, from Dubuque, Iowa, received the maximum allowable prison term after a March 30, 2016, jury verdict finding him guilty of committing a federal hate crime.
The evidence at trial showed that on January 12, 2015, Metcalf, while in a bar in Dubuque, had been using racial slurs in reference to an African American man who was also in the bar. Metcalf also displayed a swastika tattoo to other people while bragging about having burned crosses. Later in the night, Metcalf assaulted the African American man by repeatedly stomping on and kicking his head as the victim lay barley conscious on the floor of the bar. Metcalf assaulted the victim and was then pushed away from him by another person in the bar, but then returned to kick and stomp the victim in the head again.
Metcalf was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $1874.56 in restitution to the victim. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
United States Attorney Kevin W. Techau stated after sentencing, “The Department of Justice is committed to protecting the rights and freedoms of all people. Hate crimes represent an attack not just on the individual victim but also on the entire community. The federal hate crime of which Randy Metcalf was found guilty is as reprehensible as it was violent. We will continue to use every tool at our disposal to vindicate the rights of victims of violent hate crimes. “This vicious attack threatened the most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “While no sentence, including this one, can undo the harm inflicted, it does send an unequivocal message that the Justice Department will vigorously prosecute hate crimes.”
The case was investigated by the Dubuque Police Department and the Federal Bureau of Investigation. The case was jointly prosecuted by Assistant United States Attorney Anthony Morfitt and Trial Attorney Christopher Perras of the Justice Department’s Civil Rights Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1032.
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Iowa Man Convicted of Racially-Motivated Hate Crime Sentenced to 10 Years in PrisonRead the Press Release
Randy Metcalf, 40, of Dubuque, Iowa, was sentenced today to 10 years in prison for stomping on and kicking the head of an African-American man in a racially targeted attack.
The evidence at trial showed that on Jan. 12, 2015, Metcalf assaulted an African-American male at the Northside Bar in Dubuque. After getting into an argument over a jukebox with the victim’s female friends, Metcalf directed racial slurs at the victim and his friends, told other patrons that he hated black people, bragged to the bar’s owner about being involved in cross-burnings and flashed his swastika tattoo. Later that night, after hours of taunting, Metcalf attacked the victim’s female friend. When the victim intervened to protect her, Metcalf’s friends knocked him out. As the victim lay barely conscious on the floor of the bar, Metcalf walked over to him and repeatedly kicked and stomped on his head.
“This vicious attack threatened the most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “While no sentence, including this one, can undo the harm inflicted, it does send an unequivocal message that the Justice Department will vigorously prosecute hate crimes.”
“The Department of Justice is committed to protecting the rights and freedoms of all people,” said U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “Hate crimes represent an attack not just on the individual victim but also on the entire community. The federal hate crime of which Randy Metcalf was found guilty is as reprehensible as it was violent. We will continue to use every tool at our disposal to vindicate the rights of victims of violent hate crimes.”
In addition to sentencing Metcalf to the statutory maximum 10-year sentence, Chief U.S. District Judge Linda R. Reade of the Northern District of Iowa also ordered him to pay $1,874.56 in restitution. Metcalf is being held in the custody of the U.S. Marshals Service until he can be transported to a federal prison.
The case was investigated by the Dubuque Police Department and the FBI. The case was jointly prosecuted by Assistant U.S. Attorney Anthony Morfitt of the Northern District of Iowa and Trial Attorney Christopher Perras of the Justice Department’s Civil Rights Division.
United States Takes Actions to Address Alleged Renewable Fuel Standard ViolationsRead the Press Release
CEDAR RAPIDS, IOWA – The Department of Justice and the United States Environmental Protection Agency (EPA) announced today the filing of a complaint against NGL Crude Logistics LLC (NGL) and Western Dubuque Biodiesel LLC, and a settlement with Western Dubuque to address alleged violations of the Renewable Fuel Standard.
The complaint, filed in the U.S. District Court for the Northern District of Iowa alleges that NGL entered into a series of transactions with Western Dubuque in 2011 that resulted in the generation of approximately 36 million invalid renewable identification numbers (RINs). RINs are credits 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.
Under the settlement, Western Dubuque has agreed to pay $6 million to resolve alleged Renewable Fuel Standard program violations for generating RINs for renewable fuel that was produced using unapproved feedstocks and production processes. A feedstock is the basic material used in the production of renewable fuel. The consent decree does not resolve any claims against NGL.
“Congress passed the Renewable Fuels Standards program to incentivize production of biofuels in order to achieve substantial reductions in greenhouse gas emissions, reduce the United States’ dependence on foreign oil and modernize the United States’ renewable energy industry,” said Assistant Attorney General John C. Cruden for the Department of Justice Environment and Natural Resources Division. “The Justice Department is committed to ensuring that Congress’ goals are not undermined by entities that attempt to compromise the integrity of the incentive program.”
“The Department of Justice is committed to maintaining the integrity of the Renewable Fuel Standard program,” said United States Attorney Kevin W. Techau. “Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent. This $ 6 million settlement supports that goal.”
“EPA is committed to making sure companies use approved feedstocks and generate RINs legally – anything short of that compromises the integrity of the Renewable Fuel Standard program, said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The Renewable Fuel Standard relies on companies upholding fair market principles, Western Dubuque failed to do.”
The allegations in the complaint remain assertions until they are proved.
The complaint alleges that in 2011, NGL purchased more than 24 million 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.
The complaint asks the court to require NGL to retire 36 million RINs to offset the harm caused by the alleged violations and to pay a civil penalty.
EPA estimates that the generation of the second set of RINs alleged in this case resulted in excess greenhouse gas emissions equivalent to 151,319 metric tons of carbon dioxide.
EPA learned that Western Dubuque used improper feedstocks during a 2011 inspection of the company’s biodiesel facility, located in Farley, Iowa. EPA then conducted an extensive investigation into transactions between Western Dubuque and NGL and determined that the feedstocks that NGL supplied to Western Dubuque were biodiesel, which is not a permitted feedstock and that other companies had already generated RINs for the product. Western Dubuque informed EPA that it has not used biodiesel as a feedstock since 2011.
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 Renewable Fuel Standard program - created under the Energy Policy Act of 2005 - was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into our nation’s motor vehicle fuel supply and reduce the nation's dependence on foreign oil, help grow the nation's renewable energy industry and achieve greenhouse gas reductions.
Western Dubuque owns and operates a 30-million-gallon biodiesel plant located in Farley, Iowa. NGL is an energy service company that transports fuel and other products. At the time of the alleged violations, NGL was known as Gavilon LLC.
The settlement with Western Dubuque is subject to a 30-day public comment period and final court approval. A copy of the consent decree can be accessed at: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the settlement and the complaint, visit: http://go.usa.gov/xKuFM.
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Six Men Charged with Iowa and Minnesota Meth ConspiracyRead the Press Release
Rogelio Magana Garcia Jimenez, 44, from Worthington, MN; Saul Piceno Valtierra, 34, from Slayton, MN; Marcus Cervantes Martinez, 34, from Worthington, MN; Javier Martinez, 50, from Worthington, MN; Sergio Lopez-Granillo, 24, from Sioux Center, IA; and Daniel Perez Heredia, 28, from Worthington, MN, have each been charged with one count of conspiracy to distribute methamphetamine. The charges are contained in a Complaint filed September 22, 2016, in United States District Court in Sioux City.
The Complaint alleges: (1) that, from October 2015, through September 2016, the six men conspired with each other and others to distribute methamphetamine to persons in Iowa and Minnesota; (2) those charged distributed methamphetamine which had been received from Iowa and other out of state sources; and (3) on or about September 20, 2016, over five pounds of methamphetamine was seized from a residence in Worthington, MN – associated with those charged.
If convicted, each face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $100 special assessment, and at least five years of supervised release following any imprisonment.
Garcia Jimenez, Piceno Valtierra, Cervantes Martinez, Martinez, Lopez-Granillo, and Perez Heredia appeared October 4, 2016, in federal court in Sioux City and were held without bond. The next appearance for the men is trial scheduled for December 5, 2016.
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 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; Iowa Department of Narcotics Enforcement; Minnesota Bureau of Criminal Apprehension; South Dakota Division of Criminal Investigation; Buffalo Ridge Task Force; and Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-mj-236.
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DOJ Grants Support Local Law Enforcement and State of Iowa: Will Strengthen Community Policing & Prevention EffortsRead the Press Release
CEDAR RAPIDS, IOWA—Local law enforcement and the State of Iowa received Department of Justice grants designed to better serve the community, enhance transparency, and support prevention and intervention efforts.
The Cedar Rapids Police Department (CRPD) and the Linn County Sheriff’s Office were jointly awarded an Edward Byrne Memorial Justice Assistance Grant for fiscal year 2016. The $50,045 grant will be shared equally between the two agencies. The CRPD is committed to strengthening its partnership with local and federal prosecutors by conducting thorough investigations. The grant will be used to enhance existing surveillance and technology equipment and will benefit both investigative efforts and bring clarity to evidentiary matters in court proceedings. The Sheriff’s Office better serves the greater Cedar Rapids community by having the ability to timely respond to, and report on, potential criminal activity. The grant will be used to outfit patrol vehicles with up-to-date mobile equipment, which will improve efficiency and accuracy in responding and reporting.
The Edward Byrne Memorial Justice Assistance Grant (JAG) Program is the primary provider of federal criminal justice funding to state and local jurisdictions. The JAG Program provides states and units of local governments with critical funding necessary to support a range of program areas including law enforcement; prosecution and court programs; prevention and education programs; corrections and community corrections; drug treatment and enforcement; crime victim and witness initiatives; and planning, evaluation, and technology improvement programs.
The State of Iowa’s Criminal and Justice Planning Agency (JJAC) received a grant from the Formula Grants Program under the Juvenile Justice and Delinquency Prevention Act in the amount of $412,161 for fiscal year 2016. JJAC will use the grant to enhance priority areas such as: evidence-based practices; support gender equality in justice system services; continue to work on a reduction in the disparate number of minority youth involved in the juvenile justice system; and collaborate with local and state initiatives to address mental health and substance abuse issues for justice involved juveniles.
The Formula Grants Program supports state and local delinquency prevention and intervention efforts and juvenile justice system improvements. The Office of Juvenile Justice Delinquency Prevention, a component of DOJ’s Office of Justice Programs, accomplishes its mission by supporting states, local communities, and tribal jurisdictions in their efforts to develop and implement effective programs for juveniles. The office strives to strengthen the juvenile justice system’s efforts to protect public safety, hold justice-involved youth appropriately accountable, and provide services that address the needs of youth and their families.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “These grants support the common federal, state and local goal of strengthening law enforcement capabilities, enhance transparency, and strengthen the goals of community policing.”
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Media Advisory: Rail Safety Week’s List of ActivitiesRead the Press Release
CEDAR RAPIDS, IA – Cedar Rapids Mayor Ron Corbett proclaimed the week of September 26, 2016 as Rail Safety Week. The attached Proclamation encourages all citizens to participate in activities to reduce crossing crashes and pedestrian/railroad trespass incidents during the week and throughout the year.
U.S. Attorney Kevin W. Techau will be present at the Monday morning event. Joining him will be rail safety experts, representatives from the Iowa Department of Transportation, Iowa Operation Lifesaver, and the Cedar Rapids Police Department.
Media Opportunities
Monday, September 26, 10:00 a.m.
- Crash Vehicle Display – Cedar Rapids Central Fire Station, 713 1st Ave. S.E.
- Interview Opportunities – press release will be provided
Wednesday, September 28, 10:00 a.m. to 6:00 p.m.
- Rail Display – Downtown Cedar Rapids Public Library
- Iowa Operation Lifesaver’s Francis Edeker – present all day
Thursday, September 29, 9:00 a.m. (CRANDIC); 1:00 p.m. (Canadian National)
- Officer on the Train—Media invited to ride along. Train cab space is limited. Contact the following by noon Wednesday to reserve a time:
- Elaine Duvall, CRANDIC (319) 786-3696
- Tom Skinner, Canadian National, (319) 236-9284
- Operation Life Saver Presentation, 2:30 p.m.
- Downtown Cedar Rapids Public Library
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- Crash Vehicle Display – Cedar Rapids Central Fire Station, 713 1st Ave. S.E.
Former Director of World Ambassadors, LTD Sentenced for Tax EvasionRead the Press Release
CEDAR RAPIDS, IA--A Cedar Rapids man who admitted filing a fraudulent income tax return was sentenced yesterday to 8-months imprisonment.
Jon S. Petersen, 55, from Cedar Rapids, Iowa, received the prison term after a guilty plea to one count of filing a false tax return.
At his guilty plea hearing, Petersen admitted to filing a fraudulent income tax return for calendar year 2013. The return failed to include as income donations he diverted from World Ambassadors into his own personal checking account. In a plea agreement, Petersen admitted he used approximately $114,581 of those funds in 2013 for his own personal use, and such funds constituted taxable income to him. From 2005-2015, Petersen claimed to struggle with a sex addiction. It became costly so Petersen would pay for this addiction through his credit cards, home equity lines of credit, and World Ambassadors donations. World Ambassadors is a nonprofit corporation.
Petersen was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Petersen will serve three months in Bureau of Prisons custody and five-months home confinement. A special assessment of $100.00 was imposed, and he was ordered to make $79,732.35 in restitution to donors of World Ambassadors. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Petersen 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 Matt Cole 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 16-CR-39-LTS.
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