Northern District of Iowa
Press releases recorded for this federal judicial district.
Guatemalan Man Sentenced to over Two Years in Prison for Identity TheftRead the Press Release
A Guatemalan man who unlawfully used the Social Security number of a U.S. citizen was sentenced yesterday to more than two years in federal prison.
Efrain Ramos-Gutierrez, age 35, a Guatemalan citizen residing in Postville, Iowa, received the prison term after a December 28, 2015, guilty plea to one count of misuse of a Social Security Number and one count of Aggravated Identity Theft.
The evidence showed that Ramos-Gutierrez used the name and Social Security Number that he knew belonged to another to work in Postville, Iowa. In 2006, Ramos-Gutierrez was arrested in South Dakota by immigration officials, released pending further immigration hearings, and ordered to leave the United States by December 2006. Rather than leave the United States, Ramos-Gutierrez moved to Missouri in 2006, and then to Iowa in 2010 where he obtained work in Postville using the real name and Social Security Number of a U.S. Citizen. On December 11, 2014, Ramos-Gutierrez used the same name and Social Security Number to obtain insurance.
Ramos-Gutierrez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Ramos-Gutierrez was sentenced to 25 months imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Ramos-Gutierrez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1024.
Follow us on Twitter @USAO_NDIA.
Former Employee Sentenced to Federal Prison for EmbezzlingRead the Press Release
A woman who embezzled from her employer for more than five years was sentenced today to more than two years in federal prison.
Teresa Meeks, age 60, from Cedar Rapids, Iowa, received the prison term after a December 22, 2015, guilty plea to one count of wire fraud.
In a plea agreement, Meeks admitted that, while employed as an accountant for Primus Construction, Inc. in Cedar Rapids, she embezzled more than $350,000 from the company and related companies over a five year period. Meeks wrote checks to herself from company bank accounts and then covered up those checks by altering the company’s books to make the checks appear to have been used to pay legitimate business expenses or voided. In total, Meeks stole $377,610.36 in this way from September 2009 through October 2014, when her embezzlement was discovered.
Meeks was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Meeks was sentenced to 33 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $379,980.88 in restitution to Primus Construction, Inc. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Meeks 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 Anthony Morfitt and investigated by 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-98-LRR.
Follow us on Twitter @USAO_NDIA.
Felon Possessing Stolen Weapons Sentenced to PrisonRead the Press Release
A twice convicted felon who possessed three stolen weapons was sentenced today to more than four years in federal prison.
Randall Williams, 26, from Waterloo, Iowa, received the prison term after a guilty plea on January 15, 2016, to one count of being a felon in possession of firearms.
The evidence showed that Williams purchased three firearms from another individual who was involved in burglaries in the Waterloo area. At the guilty plea, Williams admitted he purchased the weapons knowing they were stolen. Williams admitted he had an Illinois felony conviction for burglary. He also had an Iowa felony drug conviction.
Williams was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 57 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Williams 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 Steve Young and investigated by the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2026.
Follow us on Twitter @USAO_NDIA.
Media Advisory: Town Hall Meeting Prescription Pain Killers and the Heroin EpidemicRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office, in partnership with the Mercy Medical Center and the Eastern Iowa Heroin Initiative, has scheduled a Town Hall Meeting on April 13th to discuss prescription pain killers and the heroin epidemic making its way into Eastern Iowa. Drug overdose is the leading cause of accidental death in the U.S., with 47,055 lethal drug overdoses in 2014. Opioid addiction is driving this epidemic, with 18,893 overdose deaths related to prescription pain relievers, and 10,574 overdose deaths related to heroin in 2014. Dubuque joins other Iowa cities facing this threat.
Viewed as a national challenge requiring a community solution, the meeting will bring the community together to exchange information and to discuss strategies to address the epidemic plaguing our state.
Visit www.facebook.com/EasternIowaHeroinInitiative to learn more. You can also join us at #HeroinTownHall.
U.S. Attorney Kevin W. Techau will be present. The event is open to the public.
Event Details
When: April 13, 2016 (flyer is attached)
Where: Grand River Center (Ballroom), 500 Bell Street, Dubuque, Iowa
Time: Begins at 6:00 p.m. - 8:00 p.m.
Link to flyer: /media/827151/dl?inline
Press wishing to attend should contact AUSA Steve Young at 319-731-4037, or by emailing him at [email protected]. Interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
2016 National Crime Victims’ Rights WeekRead the Press Release
Every April, National Crime Victims’ Rights Week (NCVRW) is held to promote victims’ rights and to honor crime victims and those who advocate on their behalf. This year’s NCVRW will be held April 10-16 and the theme, “Serving Victims. Building Trust. Restoring Hope” presents the opportunity to highlight the diversity of our communities, expand partnerships to serve victims of crime, enhance efforts to meet victims where they are, and empower crime victims as they pursue justice and recovery.
The U.S. Attorney’s Office announced today that it has partnered with the 6th Judicial Department of Correctional Services, Horizons - A Family Service Alliance, UnityPoint Health Child Protection Center, Waypoint, Riverview Center, Cedar Rapids Police Department, Deaf Iowans Against Abuse, Cedar Valley Friends of the Family, Marion Police Department, the Linn County Attorney’s Office and concerned citizens to host events in the Cedar Rapids area throughout the week. These events encourage community members to be engaged, to empower victims, and to provide an opportunity to honor those impacted by crime.
“Every year, millions of people are impacted by crime. This week is a time to celebrate progress, raise awareness of victims’ rights and services, and stand with those whose lives have been altered by crime,” said U.S. Attorney Kevin W. Techau. “My office is committed to ensuring victims are treated fairly, with dignity and respect, and are afforded their statutory rights.”
The Opening Ceremony will be held on Sunday, April 10 at 1:00 p.m. at the Marion Police Department. Denise Stapley, winner of the reality show Survivor: Philippines and a Licensed Mental Health Therapist in Cedar Rapids will be the keynote speaker. The community is invited to join city leaders, members of law enforcement, advocates of victims' rights, crime victims, survivors, and their families as they remember those who have been victimized, honor those working in the field, and focus on the need for justice and support for those impacted by crime. Sign language interpreters will be present during the ceremony.
At the Opening Ceremony the United States Attorneys’ Offices for the Northern and Southern Districts of Iowa will present the annual Victim Service Awards. Kyle Paxton, a Medicaid Fraud Unit Investigator with the Iowa Department of Inspections and Appeals, will receive the 2016 Law Enforcement Victim Service Award for his work involving a case of abuse in an elder group home. The 2016 Award of Excellence in Victim Service will be presented to Holly Elliott, a Victim-Witness Coordinator with the Dubuque County Attorney’s Office, for her work with crime victims and in developing training and standards for victim service providers.
Also, at the event on Sunday, the Linn County Attorney’s Office will present the Jennifer Clinton Domestic Violence Service Award. This year’s recipient is Officer Nicole Hotz with the Marion Police Department. Officer Hotz went above and beyond the call of duty to assist a victim of domestic abuse providing support, concern and compassion in a professional manner.
On Tuesday, April 12, the 6th Judicial Department of Correctional Services will hold a Victim Empathy Circle at the William G. Faches Center. This is a closed event in which clients on correctional supervision focus on honoring victims and developing empathy for the harm their actions have caused to their victims and the community through participation in a healing circle.
On Friday, April 15, from 7:00 to 8:30 p.m. there will be a Candlelight Vigil for Victims of Homicide held at Horizons – A Family Service Alliance located at 819 - 5th Street SE Cedar Rapid, IA. Dr. Jim Coyle will be the keynote speaker discussing Companioning Grief. Dr. Coyle has been a first responder for 33 years. His life mission has focused on assisting individuals through traumatic events.
On Saturday, April 16, at 9:00 a.m. the 10th Annual Go the Distance for Crime Victims 5K Run/Walk will take place at Thomas Park in Marion. To register go to www.gothedistance5k.com. Funds raised from this event are used to reimburse victims for financial losses as a result of a crime.
National Crime Victims’ Rights Week honors and celebrates the achievements of the past 30 years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse, and victims of human trafficking as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses such as counseling, funeral expenses, and lost wages.
For additional information about the 2016 National Crime Victims’ Rights Week and how to assist victims in your community, please contact the U.S. Attorney’s Office, Northern District of Iowa or visit www.justice.gov/usao-ndia. For additional ideas on how to support victims of crime, visit the Office for Victims of Crime website, www.ovc.gov.
Follow us on Twitter @USAO_NDIA.
Tolerance and Acceptance in the Heartland: An Examination of History’s LessonsRead the Press Release
CEDAR RAPIDS, IA – Today the United States Attorney’s Office traveled back in history to examine a time when Iowans demonstrated unfettered tolerance and acceptance by inviting refugees fleeing Nazi-occupied Europe during World War II to find a safe haven on the prairies. The program was held at the Federal Courthouse and was offered to encourage a reawakening of that tolerance and acceptance in order to overcome the disruption to our society that can be caused by our holding on to prejudices and fears.
United States Attorney Kevin W. Techau invited the Director of the non-profit organization TRACES Center for History and Culture, Dr. Michael Luick-Thrams, to share his research into refugees fleeing war-torn Europe who found safety in the American heartland and to mark its relevance to events in the world today.
Techau noted that, “The lessons history teaches us concerning the tolerance and acceptance practiced nearly 70 years ago is equally relevant today. Intolerance directed toward those who practice different religions and have a different skin color or sexual orientation is contrary to our strong and long-held cultural heritage of welcoming immigrants and of actively recognizing equality among people.”
An Iowa native, author and historian, Dr. Luick-Thrams spends part of each year in Dresden, Germany, overseeing another non-profit history and cultural center. He shared the story of the Scattergood Hostel located near West Branch, Iowa, during the war years (1939-1943). During this time Iowans welcomed 185 European refugees escaping Hitler’s reach. Luick-Thrams suggested that this glimpse into history offers redeeming stories of positive, inspiring acts of kindness and selflessness and should be viewed today with reflection.
Also speaking was a former Scattergood refugee, Guenter “George” Krauthamer, a retired Rutgers University Professor. He spoke via conference call about his family’s story of their flight from Nazi Germany in 1942.
Dr. Luick-Thrams offered his special insights on this extraordinary time in Iowa history and current events occurring in Europe. He also discussed the mass migration in the spring and summer of 2015 as refugees fleeing war, poverty and ecological disaster arrived in Europe seeking a safe haven from the myriad conflicts wracking the Middle East. Luick-Thrams watched as German neighbors, students, friends and relatives reacted to those uninvited newcomers. Today, he offered his personal perspective on how the refugee crisis will change Germany—and, indeed, Europe—forever.
Those attending the program came away with a greater appreciation of the proud cultural heritage we share as Iowans—the heritage of inclusiveness and tolerance. And, more importantly, a concrete example that the challenges the world faces today might be better served by examining history’s lessons.
Follow the office on Twitter @USAO_NDIA.
Cedar Rapids Man Sentenced to 20 Years for Heroin and Fentanyl Conspiracy Resulting in Four Injuries, Two DeathsRead the Press Release
A man who conspired to distribute heroin and fentanyl that led to multiple overdoses and deaths was sentenced today to 20 years in federal prison.
DeShaun Anderson, age 43, from Cedar Rapids, Iowa, received the prison term after a September 23, 2015 guilty plea to one count of conspiracy to distribute heroin and fentanyl resulting in serious bodily injury and death.
At the September plea hearing, Anderson admitted he conspired with others to distribute heroin and another powerful opiate, fentanyl, in Cedar Rapids. Anderson admitted that, on four occasions, users suffered serious bodily injury as a result of using the substances either he or his co-conspirators distributed. He also admitted that two individuals died as a result of using substances distributed by the co-conspirators. All of the deaths and overdose injuries admitted by Anderson occurred between late February and mid-April of 2015. Court documents reflect that, between January and April 2015, at least four other individuals lost consciousness, but did not suffer serious injuries, after using drugs distributed by Anderson or his co-conspirators.
Anderson was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Anderson was sentenced to 240 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $12,371 in restitution. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Anderson is being held in the United States Marshals’ custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids 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 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 15-CR-00046-LRR.
Follow us on Twitter @USAO_NDIA.
Media AdvisoryRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office is hosting a native-Iowan author and historian who will detail a subchapter of the state’s rich history of tolerance and acceptance, when it provided a safe haven to refugees fleeing Nazi-occupied Europe during World War II. The Scattergood Hostel located in a then-closed Quaker boarding school near West Branch was that safe haven. The author will discuss this rich history and compare and contrast it to the current mass migration of refugees occurring in Europe fleeing war, poverty and ecological disaster from the Middle East.
United States Attorney Kevin W. Techau will introduce the speaker, Dr. Michael Luick-Thrams. Another planned speaker, Dr. Guenter “George” Krauthamer, is a retired Rutgers University Professor. He will tell via a SKYPE connection about his family’s fleeing Europe and their life at the Scattergood Hostel.
Also available for viewing and parked in front of the Federal Courthouse will be a BUS-eum that contains exhibits reflecting Iowa’s rich cultural history. For details, see: http://roots.traces.org/at-home-in-the-heartland
EVENT DETAILS
When: Monday, April 4, 2016
Where: Cedar Rapids Federal Courthouse (Jury Assembly Room), 111 7th Ave. SE
Time: 1:00 – 2:00 p.m. (speaker presentation); 1:00 – 4 p.m. (BUS-eum tour)
The media interested in attending must contact the office to confirm attendance. Contact information is listed above.
A press release and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Jury Finds Man Guilty of Racially Motivated Hate CrimeRead the Press Release
A man who stomped on and kicked the head of an African American man because of the victim’s race was convicted by a jury on March 30, 2016, after a three-day trial in federal court in Cedar Rapids.
Randy Metcalf, age 40, from Dubuque, Iowa, was convicted of one count of committing a federal hate crime. The verdict was returned following about three hours of jury deliberations.
The evidence at trial showed that on January 12, 2015, Metcalf assaulted an African American male at the Northside Bar in Dubuque, Iowa, by stomping on and kicking his head as the victim lay barely 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. The evidence further showed that he assaulted this man because he was African American and that Metcalf had been using racial slurs in reference to the man over the course of the night prior to the assault. Metcalf also displayed a swastika tattoo to other people who were in the bar prior to the assault and bragged about having burned crosses.
“Racially motivated acts of violence have no place in our state or country,” said Kevin W. Techau United States Attorney for the Northern District of Iowa. “This office is committed to vigorously prosecuting federal laws prohibiting violent acts of hate and protecting the civil rights of the citizens of Iowa.”
“Hate violence violates the fundamental promise of equal protection for all that defines a free and tolerant society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “As this conviction shows, the Department of Justice will continue to aggressively prosecute hate crimes to ensure that we safeguard the rights of victims and hold perpetrators accountable.”
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Metcalf remains in the custody of the United States Marshal pending sentencing. Metcalf faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case was investigated by the Dubuque Police Department and the Federal Bureau of Investigation. The case is being 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.
Follow us on Twitter @USAO_NDIA.
Regional Elder Justice Task Forces Launched and U.S. Attorney’s Office Selected to ParticipateRead the Press Release
CEDAR RAPIDS, IA – Today the Department of Justice announced the launch of ten regional Elder Justice Task Forces. These regional teams will bring together federal, state and local prosecutors, law enforcement, and other agencies with the primary purpose to coordinate and enhance efforts against nursing homes that provide grossly substandard care to their residents.
United States Attorney Kevin W. Techau stated, “We are excited to participate at the onset of this important initiative. Elder abuse issues will affect most Iowans at some point in their lives and the forming of this task force will further our ongoing efforts to protect some of our district’s most vulnerable citizens.”
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
The Elder Justice Task Forces will include representatives from the United States Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, as well as the Department of Health and Human Services, state Adult Protective Service agencies, Long-Term Care Ombudsman programs, and law enforcement.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services to which they were entitled,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “By bringing everyone to the table, we will be able to more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
Steve Hanson, Special Agent in Charge of the Kansas City Regional Office of U.S. Department of Health and Human Services, Office of Inspector General, stated, “Our office looks forward to working with our law enforcement partners as well as state and local officials to ensure that elderly Iowans receive the appropriate level of care and services they so deserve.”
The ten Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee, and the Western District of Washington.
The Elder Justice Task Forces are part of the Department’s larger strategy and commitment to protecting our nation’s seniors through the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement and policy activities on elder justice issues and plays an integral role in the Departments’ investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Follow us on Twitter @USAO_NDIA.
Jury Convicts Iowa Man of Racially Motivated Hate Crime for Attacking an African-American ManRead the Press Release
A man who stomped on and kicked the head of an African-American man because of the victim’s race was convicted by a jury today after a three-day trial in the Northern District of Iowa.
Randy Metcalf, 40, of Dubuque, Iowa, was convicted of one count of committing a federal hate crime. The verdict was returned this afternoon following about three hours of jury deliberations.
The evidence at trial showed that on Jan. 12, 2015, Metcalf assaulted an African-American male at the Northside Bar in Dubuque by stomping on and kicking his head as the victim lay barely 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. The evidence further showed that he assaulted this man because of the victim’s race, and that Metcalf had been using racial slurs in reference to the man over the course of the night prior to the assault. Metcalf also displayed a swastika tattoo to other people who were in the bar prior to the assault and bragged about having burned crosses.
“Hate violence violates the fundamental promise of equal protection for all that defines a free and tolerant society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As this conviction shows, the Department of Justice will continue to aggressively prosecute hate crimes to ensure that we safeguard the rights of victims and hold perpetrators accountable.”
“Racially motivated acts of violence have no place in our state or country,” said U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “This office is committed to vigorously prosecuting federal laws prohibiting violent acts of hate and protecting the civil rights of the citizens of Iowa.”
Sentencing before Chief U.S. District Judge Linda R. Reade of the Northern District of Iowa will be scheduled at a later date. Metcalf faces a maximum sentence of 10 years in prison, a $250,000 fine, a $100 special assessment and three years of supervised release following any imprisonment. He remains in custody of the U.S. Marshals pending sentencing.
The case was investigated by the Dubuque Police Department and the FBI. The case is being jointly prosecuted by Assistant U.S. Attorney Anthony Morfitt of the Northern District of Iowa and Trial Attorney Christopher Perras of the Civil Rights Division’s Criminal Section.
Fayette County Man Charged with Possession of Destructive DevicesRead the Press Release
Trevor John Satrom, 33, from Oran, Iowa, has been charged with one count of possession of a National Firearms Destructive Device Not Registered to Possessor. The charges are contained in an Indictment filed on March 23, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 10, 2016, Satrom was in possession of four destructive devices: three explosive bombs more particularly described as pipe bombs and one explosive bomb more particularly described as a pressure cooker bomb. Satrom had failed to register any of these destructive devices in the National Firearms Registration and Transfer Record as required by federal law.
If convicted, Satrom faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Satrom appeared on March 25, 2016, in federal court in Cedar Rapids and was held without bond. Satrom’s next appearance for trial is set for May 23, 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 Lisa C. Williams and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Criminal Investigation, the Fayette County Sheriff’s Office, the Iowa State Fire Marshal’s Office, 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-2016.
Follow us on Twitter @USAO_NDIA.
Cybersecurity Roundtables at ISU and Drake University: Business Leaders Hear from Subject Matter ExpertsRead the Press Release
CEDAR RAPIDS, IA – Today the United States Attorneys for the Northern and Southern Districts of Iowa co-hosted with Iowa State University (ISU) and Drake University intellectual property and cybersecurity roundtables on both campuses. Two prominent subject matter experts from the Department of Justice (DOJ) provided their assessments of the cyber threats confronting American business interests and national security.
The goal of the roundtables was to provide informative briefings and discussion as to the nature of the cyber threat posed to businesses today and to provide information concerning the law enforcement response to actual or potential cyber breaches in the future. By hosting these roundtables, the United States Attorneys and the FBI hope to open and strengthen the lines of communication between the private sector and government that would be vital to an effective response to potential threat or attack.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “Today’s program provided high level FBI and DOJ briefings on the cybercrime dynamics that Iowa based companies face in 2016 and beyond. Combatting cybersecurity threats is a top priority for the Department of Justice. To effectively fight cybercrime it is important to build awareness and plan in advance of an event. Collaboration between federal government agencies and the private sector is vital to success.”
“We are pleased to be part of this very timely and important discussion,” stated Southern District of Iowa Acting U.S. Attorney Kevin VanderSchel. “The risks to individual companies and industries are profound due to the ongoing attempts to steal trade secrets, especially through computer intrusion, and we want Iowa businesses to know that the FBI and the Department of Justice stand ready to assist.”
The ISU roundtable was designed to target businesses involved in agriculture, ag bioscience, biotech and bio renewables and addressed such matters as intellectual property/trade secrets theft and cyber security issues. The Drake University roundtable focused on financial services companies, banks, and manufacturing/tech related companies addressing intellectual property and cybersecurity issues.
Assistant Attorney General (AAG) for National Security, John P. Carlin, spoke to Iowa’s business leaders attending the ISU roundtable about current threats and what his division is doing to identify, prevent, and prosecute suspected criminal activity. Carlin serves as the Department of Justice’s top national security attorney overseeing nearly 400 employees responsible for protecting the country against international and domestic terrorism, espionage, cyber, and other national security threats.
Joining AAG Carlin during the keynote address was FBI Deputy Assistant Director of the Cyber Crime Division, Eric Sporre. Spore offered the FBI’s threat assessment. Sporre is responsible for managing all operations sections in the FBI Cyber Division.
The media attending the ISU roundtable joined Carlin, Sporre, and both U.S. Attorneys in a tour of the Bio-Renewables Complex, which serves as home for the university's top-ranked department of agricultural and Biosystems engineering (ABE).
Follow us on Twitter @USAO_NDIA.
Assistant Attorney General John P. Carlin Delivers Keynote Remarks at Intellectual Property Protection and Cybersecurity Roundtable at Iowa State UniversityRead the Press Release
Remarks as prepared for delivery
AMES, IOWA
Thank you for that introduction, [U.S. Attorney] Kevin [Techau].
And thank you for inviting me to speak today about the national security threats facing our nation. This event comes on the heels of a landmark week for the department’s national security cyber program, and I want to start by saying a few words about our strategy and recent successes in this space.
For many years, nation states and their affiliates enjoyed what they perceived to be a cloak of anonymity when acting in cyber space. A cloak they hid behind to break our laws through cyber intrusions and to threaten our security and economic well-being. They had this perceived cloak because they thought we couldn’t figure out who did it and, if we did figure it out, we would keep it a secret.
Last week, we proved yet again – through a number of law enforcement actions – that we will find and expose those who threaten our national security through cyber attacks or theft.
First and foremost, we unsealed an indictment charging seven experienced Iranian computer hackers for their roles in an extensive campaign of distributed denial of service attacks against the U.S. financial sector.
The damage was real: 46 major financial institutions attacked over 176 days, hit by as much as 140 Gigabits of data per second, costing the victims tens of millions of dollars.
In addition, one defendant is also charged with obtaining unauthorized access into the Supervisory Control and Data Acquisition systems of the Bowman Dam, located in Rye, New York. The intrusion could have given the hacker control of the dam’s water levels and flow rates if it had not been disconnected from the system for maintenance.
These attacks threatened public health and safety, and our economy. And this indictment exposes the faces and names behind the keyboards in Iran used to orchestrate these attacks against us – the attackers were employed by two computer security companies that work on behalf of the Iranian Government, including the Islamic Revolutionary Guard Corps.
That same week, we unsealed a complaint against members of the Syrian Electronic Army, for activity that sought to harm the economic and national security of the United States in the name of Syria and sought to extort law-abiding people all over the world to line their own pockets.
And, following a successful extradition from Canada, we convicted a Chinese businessman in Los Angeles for hacking into the computer networks of U.S. defense contractors, including Boeing, and stealing sensitive information, including data related to fighter jets.
Last week’s announcements prove, once again, there is no free pass for nation state affiliated computer intrusions.
The Role of the National Security Division
Disrupting these national security threats is among the highest priorities of the Department of Justice and the National Security Division. Let me share a bit of background on the National Security Division, and what our experience combatting the threat of terrorism has taught us about combating other national security threats, including threats to our national assets.
The September 11th terrorist attacks showed us that putting walls up between foreign intelligence and law enforcement makes connecting the dots of a plot very difficult. So a decade ago, Congress created the department’s first new litigating division in almost half a century, the National Security Division.
We ensure unity of purpose in the department’s number-one mission – to protect against terrorism and other threats to our national security. And we unite prosecutors and law enforcement officials with intelligence attorneys and the intelligence community, to ensure that we approach national security threats using every tool and resource available to the federal government.
In the years since National Security Division’s creation, it is increasingly clear that the factors that motivated our creation and guided our efforts to combat terrorism are equally true in our efforts to protect our valuable national assets.
As with counterterrorism, we realized that prosecution is only one of the many tools the U.S. government brings to bear. So the National Security Division restructured and adapted to support a whole-of-government approach to national security cyber threats. Criminal prosecutions, sanctions, trade pressure and diplomatic options are just some of the responses available to us as we combat online threats to the national security.
Underlying all of the government’s policy options is the need for attribution – to attribute online intrusions with confidence, down to the country, government agency, organization or even individuals involved.
Law enforcement agencies and the Department of Justice are uniquely well suited for these kinds of investigations. And these investigations are the bedrock of our whole-of-government approach because they facilitate the use of so many other tools that promote deterrence.
In some cases, attribution leads to public charges and a criminal prosecution. In other cases, a prosecution may not be the right option, but attribution opens the door for sanctions, disruption operations and bilateral diplomacy.
Our attorneys live by that whole-of-government approach. We work with our government partners to pick the best tool or combination of tools to get the job done under the rule of law.
We ensure that we have the necessary expertise no matter who is behind the threat, what their motivation is or what tool we need to use.
Under unified NSD leadership, we have integrated the department’s full range of national security expertise under one roof, bringing varied skills and knowledge to the full range of national security challenges.
The Threats to our National Assets
The threat landscape we face is ever-changing and evolving, and while our top priority remains combating terrorism, we have also sharpened our focus and increased our attention on the emerging threats to our national assets, including the threat of economic espionage.
And we have seen that these threats are not confined to banks in New York or defense contractors in California. Our entire nation, including America’s heartland here in Iowa, is under constant attack from foreign adversaries and competitors who try to steal trade secrets and other intellectual property, at the expense of our economy and national security.
When certain foreign entities eager for sensitive and valuable information can’t buy it, they may take another approach: they try to steal it. Corporate theft can occur through insiders employed by a company – or it can occur remotely, through cyber intrusions that exploit a vulnerability present in a company’s networks. Companies must be ready for all of these vectors of vulnerability.
Iowa is a fitting place to address these topics. Iowa’s agricultural and food production, renewable energy, biotechnology and advanced manufacturing are an integral part of the country’s economic engine. Between 2002 and 2011, Iowa’s agricultural production grew over 200 percent. This growth is attributable in part to the tremendous innovation that is taking place
in the American agriculture sector. According to one government study, agricultural biotech accounts for $80 billion of a $260 billion biotechnology sector.
You are revolutionizing the way America grows crops. You invest in biotechnology research to develop higher-yielding, drought-resistant crops. You rely on data from sophisticated soil sensors, satellites and drones to optimize the use of water and pesticides.
But, while you spend your days innovating, others spend their days on campaigns to steal the fruits of Americans’ labor.
Just this year, here in Iowa, Mo Hailong, a lawful permanent resident and employee of a China-based seed company, was convicted of participating in a long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto, for the purpose of covertly transferring the technology to China.
Hailong and his co-conspirators brazenly stole inbred corn seeds from production fields not far from here. Although he knew that this technology was the valuable and confidential intellectual property of DuPont Pioneer and Monsanto, he stole it for the benefit of his China-based company.
The threat of this kind of economic espionage is serious. Some estimate that, every year, the U.S. loses more than $300 billion from theft of our intellectual property. That figure is about equivalent to the current annual level of U.S. exports to Asia. Losses of that magnitude cost the American economy untold numbers of jobs.
They reduce the profit that American firms make from research and development, which in turn reduces the incentives and resources for innovation. And the activity undermines the trust between countries and companies that is necessary to do business in a globalized economy.
As companies move to digital storage, economic espionage increasingly occurs not just through insider threats but also through cyber activity. As a result of the proliferation of technology – and the myriad ways to exploit it – we face a changing world order in which lone hackers, organized crime syndicates and nation states are all increasingly able to harm our shared networks and our livelihood. Every sector of the economy is a target – agriculture, energy, financial institutions, infrastructure, entertainment and more.
And hackers come in all shapes and sizes. We have seen state and non-state actors using the Internet to steal our intellectual property and export-controlled information at unprecedented levels.
For example, in May 2014, after a lengthy investigation, the department indicted five Chinese military officers by name for computer hacking, economic espionage and other offenses directed at American companies. The indictment describes numerous and specific instances where uniformed officers of the People's Liberation Army hacked into the computer systems of American nuclear power, metals and solar-products companies to steal trade secrets and sensitive, internal communications that could be used by Chinese companies to give them a commercial leg-up.
The investigation, and the public charges it led to, have had a lasting impact. At the time, our indictment was met with indignant denials. But a year later, after rumors circulated that additional costs might be imposed, Chinese President Xi Jinping publicly declared, during his state visit in September, that, “China strongly opposes and combats the theft of commercial secrets and other kinds of hacking attacks.” The United States and China committed that neither country’s government will conduct, or knowingly support, cyber-enabled theft of trade secrets or confidential business information with the intent of providing competitive advantage to companies or commercial sectors.
And, at the G20 Summit last fall, leaders of the world’s most powerful nations pledged not to conduct or support cyber economic espionage. What began with denials ended, at least for now, with a shift in international norms and a commitment from China to change its behavior.
Of course, indictments of state-sponsored hackers will not, on their own, prevent all cyber theft. This is the very point of an all-tools, whole-of-government approach. We need to exert pressure on bad actors from every possible angle. Prosecutions are just one tool in the broader Justice Department approach, which is just one angle from which the U.S. can pressure nation-state actors. The ultimate success of this approach will depend on the ability of U.S. agencies and departments to strengthen and support one another’s actions.
We will not stand idly by as others attempt to steal from us. We will hold them accountable – no matter who they are, where they are or the means by which they steal.
Public-Private Partnership
But we cannot do it alone. Your companies – and thus, you, have a critical role to play.
In the case of Hailong, the investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the FBI. DuPont Pioneer and Monsanto cooperated fully throughout the investigation, and that cooperation was essential to disrupt the theft of American technology and hold the perpetrator accountable.
As leaders in your industries, you are on the front lines defending your companies’ valuable intellectual property against insider threats, cyber-attacks and other bad actors determined to erode America’s status as a global leader in those fields.
We know from experience that those seeking to do us harm will look for any available vulnerability to exploit. In many cases, your adversaries have the full backing of their foreign governments and so should you.
As a nation, we must work together to deter and disrupt these threats, and to change our adversaries’ calculus by increasing their cost. Our strategy must ensure there is no free pass.
But the government’s response is only one half of the equation. We need your help. Our nation’s crown jewels are overwhelmingly in private sector hands. And so we work with U.S. companies, across all industry sectors, to ensure that our national security interests are protected.
We have spent time and energy in face-to-face sit downs so that we may better understand the concerns and challenges facing U.S. companies, share guidance and information, and assist with protection, detection, attribution and response. We can warn companies that manufacture or sell targeted U.S. technology when certain bad actors are seeking the particular technology they make.
Corporate outreach sensitizes industry to the threat they face and helps to stem the flow of sensitive technology out of the United States.
This type of cooperation is especially important with respect to cyber-enabled threats. After all, the Internet runs on private infrastructure and the hardware and software that we all use – including in the government – is developed and maintained by the private sector.
After an attack, if an organization works with law enforcement, it puts both in the best possible position to find out exactly what happened and to remediate and prevent further damage. The evidence is often fleeting, so early notification and access to the data is extremely important.
In addition, we may have seen the same indicators of malicious activity in other attacks, so we can conclude who was responsible and identify possible impacts and means of remediation. Importantly, it also allows us to share information with other potential victims. One organization’s vulnerability is everyone’s vulnerability and it is critical that we work together.
Law enforcement may be able to use legal authorities and tools that are unavailable to non-governmental entities. Law enforcement can also enlist the assistance of international partners to locate stolen data or identify a perpetrator.
These tools and relationships can greatly increase the odds of successfully apprehending an intruder or attacker and securing lost data. Finally, this cooperation is vital to successful prosecutions that, as I explained, can prevent criminals from causing further damage to victim companies and others.
A united front is critical because the threat you face includes hackers with the full backing of their governments or that are part of sophisticated, international criminal syndicates. They have backup, but so do you – because your government is here to help.
Last year, we announced a new position within the National Security Division focused on outreach to the private sector. This position was created in recognition of the importance of relationships and cooperation in cybersecurity. We understand the importance of prevention and of resilience. We want to support our private sector partners, whether they simply want to establish early lines of communication or call while under the strain of a continuing network breach.
The conversations we have at these events are essential to keep our nation secure, to protect the privacy of our citizens, to enable American businesses to compete fairly in our global economy and to ensure that U.S. businesses and institutions are resilient in the face of cyber threats. While we gather here in Iowa to work together to make this country safer, our adversaries likewise gather to strategize against us. The threats are not letting up and neither will we.
Thanks again for inviting me. I look forward to your questions.
*******media Advisory*******Read the Press Release
WASHINGTON – Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kevin W. Techau of the Northern District of Iowa, Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa, and Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division, will deliver remarks and participate in an intellectual property protection and cybersecurity roundtable co-hosted by Iowa State University on WEDNESDAY, MARCH 30, 2016. Following the keynote address, there will be a media tour and interview opportunities available with the Department of Justice officials at the BioRenewables Complex.
PLEASE NOTE, THE ROUNDTABLE DISCUSSION IS UNDER CHATHAM HOUSE RULES REGARDING AUDIENCE QUESTIONS AND PARTICIPATION. THE CONTENT OF THE DISCUSSION CAN BE REPORTED ON, BUT WITHOUT AUDIENCE MEMBER ATTRIBUTION OR IDENTIFICATION. GOVERNMENT PARTICIPANTS MAY BE IDENTIFIED AND QUOTED BY NAME.
IOWA STATE UNIVERSITY ROUNDTABLE
WHO: Assistant Attorney General for National Security John P. Carlin
U.S. Attorney Kevin W. Techau of the Northern District of Iowa
Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa
Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division
WHAT: Remarks and roundtable discussion targeted to businesses involved in agriculture, agricultural bioscience, biotech and bio renewables addressing trade secret theft and cybersecurity issues.
WHEN: WEDNESDAY, MARCH 30, 2016
9:00 a.m. CDT/ 10 a.m. EDTWHERE: Iowa State University
Memorial Union – Campanile Room
2229 Lincoln Way
Ames, IA 50011
OPEN PRESSNOTE: Press inquiries regarding logistics should be directed to Steve Young at [email protected]. AAG Carlin interview requests should be directed to [email protected] or (202) 353-5418.
BIO-RENEWABLES COMPLEX TOUR
WHO: Assistant Attorney General for National Security John P. Carlin
U.S. Attorney Kevin W. Techau of the Northern District of Iowa
Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa
Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division
WHAT: Tour of the complex followed by media availability
WHEN: WEDNESDAY, MARCH 30, 2016
10:15 a.m. CDT/ 11:15 a.m. EDTWHERE: Iowa State University
BioRenewables Complex
617 Bissell Road
Ames, IA 50011
OPEN PRESSNOTE: Press inquiries regarding logistics should be directed to Steve Young at [email protected]. AAG Carlin interview requests should be directed to [email protected] or (202) 353-5418.
Fourth Defendant Pleads Guilty in Connection with Scheme to Unlawfully Ship Firearms to LebanonRead the Press Release
Bassem Afif Herz, age 31, pleaded guilty today in United States District Court in Cedar Rapids, to charges relating to a scheme to illegally ship firearms and ammunition to Lebanon.
Herz was originally charged along with his wife, Sarah Majid Zeaiter; his brother, Ali Afif Ali Herz; and his nephew, Adam Al Herz, in a criminal complaint filed in May 2015. The affidavit supporting the complaint alleged that between about August 2014 and May 11, 2015, three shipping containers originating from Cedar Rapids were loaded with Bobcat skid loaders, clothing, and various other items with an intended destination of Beirut, Lebanon. The first container was not interdicted. On about March 26, 2015, the second container was interdicted at the outbound port in Norfolk, Virginia, where it was found to contain 53 firearms and more than 6800 rounds of ammunition secreted in three Bobcat skid loaders inside the container. On May 8, 2015, a third container, loaded and shipped from a Cedar Rapids business, was searched and found to contain an additional 99 firearms and over 9500 rounds of ammunition. The firearms and ammunition were again secreted within two Bobcat skid loaders in the container.
Herz pleaded guilty today to: (a) one count of conspiring to: deal in firearms without a license; ship and transport firearms and ammunition in interstate commerce; make false statements to licensed firearms dealers; fail to give notice to common carriers; and violate the Arms Export Control Act; (b) one count of conspiracy to commit money laundering; and (c) one count of violating the Arms Export Control Act. In total, Herz could be sentenced to serve 45 years imprisonment; pay a $1,750,000 fine and $300 in special assessments; and serve 13 years of supervised release.
Herz’s wife, brother, and nephew each pleaded guilty in United States District Court in Cedar Rapids to similar charges on March 10 and 11, 2016.
Sentencing proceedings in each case will be set at a later date.
In a plea agreement unsealed at the time of the guilty plea today, Herz admitted there were a total of four shipments of guns sent from Cedar Rapids and destined for Lebanon, between March 2014 and May 2015. Each of the shipping containers was shipped from Midamar Corporation in Cedar Rapids and contained Bobcat skid loaders in which firearms and ammunition were concealed. Proceeds of the guns sales were used to purchase more guns and ammunition and to further the illegal scheme.
The case is being prosecuted by Assistant United States Attorney Richard Murphy and was investigated by U.S. Immigration and Customs Enforcement, Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and U.S. Customs and Border Protection.
Anyone with information concerning this matter is requested to contact Homeland Security Investigations at 319-286-4680.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0054-LRR.
Follow us on Twitter @USAO_NDIA.
World Water Day ObservedRead the Press Release
CEDAR RAPIDS, IA – Safe, sufficient, and reliable water resources are essential to the functioning of every aspect and sector of United States society, including agricultural and energy production, industry and economic growth, human and environmental health, and national security. Because of its importance, today marks the international observance known as World Water Day.
World Water Day dates back to the 1992 United Nations Conference on Environment and Development where an international observance for water was recommended. The United Nations General Assembly responded by designating March 22, 1993, as the first World Water Day. It has been held annually since then.
A White House Water Summit is being held today to raise awareness of the importance of water, and to catalyze ideas and actions to help address these issues through innovative solutions. The event will be livestreamed at www.whitehouse.gov, and the public is invited to join in online using the hashtag #WHWaterSummit.
United States Attorney Kevin W. Techau noted that the observance of World Water Day provides an opportunity to learn more about water related issues. Techau noted, “The Department of Justice litigates a wide range of criminal and civil environment enforcement cases under the Clean Water Act. Clean water is a life-giving, life-sustaining resource for the people of Iowa and people across America. The Act was enacted more than four decades ago because Americans realized how critically important this resource is to all of us. I am proud that we continue to use this law to protect the precious resource of water today, here in Iowa.”
Early this year the Federal Court in Cedar Rapids signed a consent decree between the City of Waterloo, the United States and the state of Iowa, which requires the city to comply with the Clean Water Act and take all steps necessary to come into full compliance with the Act.
Last year a Remsen, Iowa, man was sentenced in Federal Court to be confined following his guilty plea to one count of knowingly discharging a pollutant into a waterway of the United States. The discharge resulted in a massive fish kill.
More recently the office filed a four count civil complaint against a concentrated animal feeding operation (CAFO) for discharges of manure and process wastewater being discharged into an unnamed tributary of the Big Sioux River. The complaint is merely an allegation and the named defendant is presumed not liable until shown otherwise. A trial date has not been set. The United States is seeking civil penalties and injunctive relief.
The Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. The basis of the CWA was enacted in 1948 and was called the Federal Water Pollution Control Act, but the Act was significantly reorganized and expanded in 1972. “Clean Water Act” became the Act's common name with amendments in 1972. It is one of the United States' first and most influential modern environmental laws. As with many other major U.S. federal environmental statutes, it is administered by the U.S. Environmental Protection Agency (EPA), in coordination with state governments.
Emergency events should be reported through the National Response Center at 1-800-424-8802; or on an Environmental Protection Agency form found at: www.epa.gov/enforcement/report-environmental-violations.
Follow us on Twitter @USAO_NDIA.
Former Marion Man Pleads Guilty to Receiving Child PornographyRead the Press Release
A man who received child pornography pled guilty today in federal court in Cedar Rapids.
Andrew Schrock, age 32, formerly from Marion, Iowa, was convicted of one count of receipt of child pornography. At the plea hearing, Schrock admitted that, between 2013 and 2014, he knowingly used the Internet to receive child pornography.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Schrock remains in custody of the United States Marshal pending sentencing. Schrock faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Marion 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 16-0006.
Follow us on Twitter @USAO_NDIA.
Three Plead Guilty in Connection with Scheme to Unlawfully Ship Firearms to LebanonRead the Press Release
Ali Afif Al Herz, age 51, Sarah Zeaiter, age 25, and Adam Ben Ali Al Herz, age 23, all from Cedar Rapids, Iowa, have each pleaded guilty in United States District Court in Cedar Rapids, to charges relating to a scheme to illegally ship firearms and ammunition to Lebanon.
The three people were originally charged in a criminal complaint filed in May 2015. The affidavit supporting the complaint alleged that between about August 2014 and May 11, 2015, three shipping containers originating from Cedar Rapids were loaded with Bobcat skid loaders, clothing, and various other items with an intended destination of Beirut, Lebanon. The first container was not interdicted. On about March 26, 2015, the second container was interdicted at the outbound port in Norfolk, Virginia, where it was found to contain 53 firearms and more than 6800 rounds of ammunition secreted in three Bobcat skid loaders inside the container. On May 8, 2015, a third container, loaded and shipped from a Cedar Rapids business, was searched and found to contain an additional 99 firearms and over 9500 rounds of ammunition. The firearms and ammunition were again secreted within two Bobcat skid loaders in the container.
Adam Al Herz and Sarah Majid Zeaiter each pleaded guilty to: (a) one count of conspiring to: deal in firearms without a license; ship and transport firearms and ammunition in interstate commerce; make false statements to licensed firearms dealers; fail to give notice to common carriers; and violate the Arms Export Control Act; (b) one count of conspiracy to commit money laundering; and (c) one count of violating the Arms Export Control Act. In total, Adam Al Herz and Sarah Majid Zeaiter could each be sentenced to serve 45 years imprisonment; pay a $1,750,000 fine and $300 in special assessments; and serve 13 years of supervised release.
Ali Afif Al Herz pleaded guilty to: (a) one count of possessing firearms after having been previously convicted of a misdemeanor crime of domestic violence; (b) one count of conspiring to: deal in firearms without a license; ship and transport firearms and ammunition in interstate commerce; make false statements to licensed firearms dealers; fail to give notice to common carriers; and violate the Arms Export Control Act; (c) one count of conspiracy to commit money laundering; and (d) one count of violating the Arms Export Control Act. In total, Ali Afif Al Herz could be sentenced to serve 55 years imprisonment; pay a $2,000,000 fine and $400 in special assessments; and serve 16 years of supervised release.
Sentencing proceedings in each case will be set at a later date.
The case is being prosecuted by Assistant United States Attorney Richard Murphy and was investigated by U.S. Immigration and Customs Enforcement, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Anyone with information concerning this matter is requested to contact Homeland Security Investigations at 319-286-4680.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 15-CR-0054-LRR.
Follow us on Twitter @USAO_NDIA.
Brothers Sentenced in Meat Fraud CaseRead the Press Release
Jalel Aossey, age 41, and his brother Yahya Nasser Aossey, age 46, both of Cedar Rapids, Iowa, the former co-owners of Midamar Corporation (Midamar) and ISA, Inc. (d/b/a Islamic Services of America, Inc.), were sentenced in federal district court in Cedar Rapids, Iowa, today for their roles in a scheme to defraud customers and consumers of meat products sold by Midamar and certified by ISA as meeting certain international halal standards. The corporate entities owned by the Aosseys, and previously by their father, William B. Aossey, who founded the businesses, were sentenced in related cases on February 25, 2016.
Jalel Aossey, former president of Midamar, previously pleaded guilty to one count of conspiring to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud.
Jalel Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to serve 12 months and one day imprisonment and fined $30,000. In addition, he was ordered to pay a special assessment of $100. Aossey will be required to serve a three-year term of supervised release after the prison term and to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of that agreement and his plea agreement, Aossey was required to divest his interest in Midamar and to no longer be associated with the management or operations of Midamar.
Yahya Aossey previously pleaded guilty as a responsible corporate officer to two counts of selling, transporting, and offering for sale and transportation in commerce, meat and meat food products that were misbranded at the time of sale or transportation. As part of a plea agreement, prosecution on a conspiracy charge was deferred for a period of five years, subject to compliance with the terms of a pretrial diversion agreement.
Yahya Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to serve a three year term of probation and fined $5,000. In addition, he was ordered to pay a special assessment of $50. As part of his conditions of probation, Aossey was ordered to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of the consent decree and his plea agreement, Aossey will be permitted to continue as the owner and operator of Midamar. The consent decree also imposes several requirements on Midamar regarding corrective actions to guard against future violations.
William B. Aossey was previously sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 24 months imprisonment and fined $60,000. Aossey was also ordered to forfeit $184,983 representing proceeds of the fraud. In addition, he was ordered to pay costs of prosecution of $16,824 and a special assessment of $1,500.
Midamar was previously sentenced to pay a fine of $20,000 and ordered to forfeit $600,000. Midamar was also placed on probation for five years. As a special condition of probation, Midamar will be required to abide by all terms of a consent decree entered into with the USDA Food Safety Inspection Service. The consent decree requires Midamar to take a variety of corrective actions and to remove certain corporate officials, including Jalel Aossey and William B. Aossey, from the business. Midamar was also ordered to pay a special assessment of $400.
ISA was previously sentenced to pay a fine $60,000 and ordered to pay a special assessment of $400. ISA was also ordered to forfeit $600,000. The forfeiture judgment was ordered joint and several with Midamar. ISA must also abide by a 5 year term of probation.
“The United States Attorney’s Office, in conjunction with our law enforcement partners, is dedicated to curbing business fraud wherever it’s found,” said United States Attorney Kevin W. Techau following sentencing. “The public has a right to expect that domestic food products will be properly labeled and distributed in accordance with law. That was not done in this case. We will continue to pursue those who lie, cheat and steal from the public.”
“IRS Criminal Investigations is committed to unraveling complex financial transactions and schemes of this nature to assist our law enforcement partners,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigations. “The proceeds of illegal activity are used as fuel to continue their criminal conduct.”
Special Agent-in-Charge, Anthony Mohatt, USDA, Office of Inspector General Investigations, Midwest Region stated: “We greatly appreciate the efforts of the United States Attorney’s Office, and our investigative partners who worked tirelessly to bring to justice the corporations and individuals who engaged in a blatant, long-term pattern of activities designed to circumvent USDA regulations for financial gain. The results of this investigation highlight our agencies goal to strengthen USDA’s ability to implement and improve safety and security measures to protect the public health.”
The cases were prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy L. Vavricek and investigated by the United States Department of Agriculture Office of Inspector General Investigations and Internal Revenue Service Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are: 14-CR-00138-LRR (Jalel and Yahya Aossey); 14-CR-00116-LRR (William B. Aossey, Jr.); 14-CR-00138-LRR (Midamar & ISA).
Follow us on Twitter @USAO_NDIA.
Reinbeck Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
A man who received and possessed child pornography was sentenced today to 30 years in federal prison.
Michael Cottrell, age 43, from Reinbeck, Iowa, received the sentence after an October 13, 2015 guilty plea to one count of receipt of child pornography and one count of possession of child pornography. At the plea hearing, Cottrell admitted that, between 2012 and 2014, he knowingly received child pornography and possessed it on his computer. At the sentencing hearing, the parties and the court discussed Cottrell’s history of sexual contact with minors when he was a juvenile.
Cottrell was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cottrell was sentenced to 360 months’ imprisonment. A special assessment of $200 was imposed, Cottrell was ordered to pay $500 in restitution, and he must serve a 20-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 Grundy County Sheriff’s Office, 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 15-82.
Follow us on Twitter @USAO_NDIA.
Drug User Possessing a Weapon off to PrisonRead the Press Release
A man who possessed a handgun while intoxicated and had marijuana and cocaine within his system was sentenced today to five years in federal prison.
Darius Omar Akheen Rhone, age 27, from Dubuque, Iowa, received the prison term after a December 16, 2015, guilty plea to a single count Indictment of being a prohibited person in possession of a firearm and ammunition. Rhone’s prohibited status was established by his illegal drug use.
At the guilty plea, Rhone admitted his drug use and possession of the weapon and ammunition on September 1, 2015. At the sentencing hearing, the facts revealed that Rhone, while intoxicated at a local bar, frequently displayed a .22 caliber pistol kept in his waistband and had threatened to hurt someone. The loaded magazine was in the weapon but a round was not chambered. Further investigation revealed Rhone was in possession of a small quantity of marijuana and later tested positive for both marijuana and cocaine use.
Rhone was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 60 months’ imprisonment. A special assessment of $100 was imposed and he must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Rhone 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 Steve Young and investigated by the Dubuque Police Department.
Court file information at: https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-01025.
Follow us on Twitter @USAO_NDIA.
Guatemalan Man Sentenced for Illegal Re-EntryRead the Press Release
A man who illegally re-entered the United States was sentenced today to time served.
Eriberto Nimamac-Tzoy, age 39, from Guatemala, received the prison term after a December 24, 2015, guilty plea to one count of illegal re-entry.
At the guilty plea, Nimamac-Tzoy admitted he had illegally re-entered United States from Guatemala after being deported on November 13, 2006. On November 23, 2015, Nimamace-Tzoy was encountered by ICE agents at the Hamilton County Jail where he was incarcerated for public intoxication.
Nimamac-Tzoy was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Nimamac-Tzoy was sentenced to time served. He must serve a 1-year term of supervised release.
Nimamac-Tzoy is being held in the United States Marshal’s custody until he can be transported to ICE custody.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-3052.
Follow us on Twitter @USAO_NDIA.
Bar Owner Convicted of Tax EvasionRead the Press Release
A bar owner who admitted to filing false tax returns pled guilty today in federal court in Cedar Rapids.
Bradley Tischer, age 51, from Atkins, IA, was convicted of one Count of Tax Evasion.
At the plea hearing, Tischer admitted in a plea agreement that he evaded taxes from 2009-2013, knowing the returns were false as to his reportable income.
Tischer owned and operated three bars and grills known as Brogan’s, Miguel’s and Bobby T’s. He also had a corporation known as JGT, Inc., which were used to operate Miguel’s and Bobby T’s. Tischer underpaid his taxes from 2009-2013 in the amount of approximately $357,172. Each tax return contained a written declaration that it was signed under the penalty of perjury. Tischer knew he had not reported funds taken from Brogan’s and JGT, Inc. which were used for his own benefit.
Sentencing will be set after a presentence report is prepared. Tischer was released pending sentencing. Tischer faces a maximum penalty of not more than 5 years imprisonment without the possibility of parole; a fine of not more than $100,000; a mandatory assessment of $100; costs of prosecution; and a term of supervised release of up to one year.
The case is being prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by Internal Revenue Service-Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-16.
Follow us on Twitter @USAO_NDIA.
U.S. Attorney’s Office Celebrates Women’s History MonthRead the Press Release
CEDAR RAPIDS, IA – The 2016 theme for Women’s History Month which runs through March honors women who have shaped America’s history and its future through their public service and government leadership. Iowa had such a leader in Eunice Viola “Ola” Babcock Miller. Today the United States Attorney’s Office commemorated the month with an examination of this leader’s great accomplishments during a program at the federal courthouse in Cedar Rapids.
U.S. Attorney Kevin W. Techau welcomed those attending the program, including special guests. Chief of the Iowa State Patrol, Colonel Michael Van Berkum, attended the event and was treated to a historical account of Ms. Babcock’s important role in Iowa’s history as portrayed by Rosemary Harris of Columbus Junction.
Techau noted, as the former Commissioner of the Iowa Department of Public Safety, that Ola Babcock Miller was an “inspirational governmental leader when women were generally not active politically.” He added, “Ms. Miller was a leader ahead of her time. Her courage and willpower in founding the Iowa State Patrol saved thousands of lives. We were proud to honor her memory and legacy as an outstanding public servant and leader. ”
In 1932 Miller was elected the state’s first Secretary of State and before that was active in the suffrage movement as well as the Daughters of the American Revolution.
America’s history sometimes overlooks and undervalues the dramatic influence on our public policy and the building of viable institutions and organizations contributed to by our political leaders like Ola Babcock Miller.
Extraordinary women have fought tirelessly to broaden our democracy’s reach and help perfect our freedoms. Today those successes and influences were celebrated.
Miller was one of the first four women to be inducted into the Iowa Women's Hall of Fame in 1975. In 1999, the Iowa Legislature, prompted by the Iowa Commission on the Status of Women, authorized the renaming of the stately Old Historical Building at East Grand Avenue and East 12th Street as the Ola Babcock Miller State Office Building. The State Library and other state offices are housed in the building following a $20 million renovation.
Follow us on Twitter @USAO_NDIA.
Felon in Possession of a Firearm Goes to PrisonRead the Press Release
A man with a prior felony and misdemeanor domestic abuse conviction was sentenced yesterday to nearly three years in federal prison.
Willie Hampton, age 56, from Cedar Rapids, Iowa, received the prison term after entering a guilty plea on December 2, 2015, to being a prohibited person in possession of a firearm. He was prohibited from possessing firearms because he had a previous felony drug conviction and a misdemeanor domestic abuse assault conviction.
At the guilty plea, Hampton admitted he was prohibited from possessing a firearm because of the two convictions. A .22 caliber revolver was found in his home after the police was alerted to its presence. At sentencing, it was pointed out that Hampton had criminal convictions covering three decades, including: drug offenses; assaults; interference with official acts; OWIs; driving while suspended/revoked/ barred; criminal mischief; and, false reporting. The court noted Hampton’s criminal history plus his threatening and aggressive manner toward others then sentenced him to the maximum allowed within the sentencing range.
Hampton was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 33 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Hampton 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 Steve Young and investigated by 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 14-CR-104.
Follow us on Twitter @USAO_NDIA.
Chicago Man Found Guilty of Conspiring to Distribute Heroin and Fentanyl That Caused Multiple Deaths and OverdosesRead the Press Release
A man who conspired to distribute heroin, fentanyl, and crack cocaine that led to several overdoses and deaths was convicted by a jury today, after a 6-day trial in federal court in Cedar Rapids.
Max Julian Wright, age 35, from Chicago, Illinois, was convicted of two counts of distribution of fentanyl and one count of conspiring to distribute heroin, crack cocaine, and fentanyl that resulted in six serious bodily injuries and two deaths. The verdict was returned this afternoon following about 3 ½ hours of jury deliberations.
The evidence at trial showed that, between about 2013 and June 2015, Wright brought large quantities of heroin, fentanyl, and crack cocaine from Chicago to Cedar Rapids. Wright and other individuals, including DeShaun Anderson and Marcus Wallace, sold the drugs to various users in Cedar Rapids. Fentanyl is a synthetic opiate similar to heroin, but many times more potent than heroin. Witness testimony showed that by at least late 2014, the potency of the heroin being sold by Wright and Anderson increased, which led to at least six individuals immediately overdosing on the drugs. Testimony showed the users who overdosed lost consciousness nearly immediately after using the drugs, and had severely reduced breathing function due to the effects of the opiate drugs. One of the injured victims died two days later from the injuries sustained from using the drugs. Another victim died in early April of a mixed-drug overdose that included a toxic level of fentanyl in the victim’s blood. All of the deaths and overdose injuries found by the jury occurred between late February and mid-May of 2015.
The jury also found that Wright twice distributed fentanyl during controlled transactions conducted by police in May and June 2015. Evidence at trial showed the fentanyl was sold to a heroin customer of Wright’s, and that at the time the customer and the police believed the substance was heroin.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wright remains in the custody of the United States Marshal pending sentencing. Wright faces a mandatory minimum sentence of life imprisonment, a $12,000,000 fine, $300 in special assessments, and a lifetime term of supervised release if he were released from prison.
The case 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 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 the Linn County Medical Examiner’s Office, and prosecuted by Assistant United States Attorneys Dan Chatham and Patrick Reinert.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00046-LRR.
Follow us on Twitter @USAO_NDIA.
United States Sues Iowa CAFO and its Owner for Alleged Clean Water Act Violations, including Discharging Manure into a Water of the United StatesRead the Press Release
Meadowvale Dairy, LLC (Meadowvale), and its owner, Sjerp Ysselstein, have been sued by the United States on four counts of alleged Clean Water Act violations. The claims are contained in a Civil Complaint filed on February 26, 2016, in United States District Court in Sioux City. The Complaint alleges that Ysselstein operates Meadowvale, which has concentrated animal feeding operations (CAFOs) near Rock Valley.
The Complaint alleges that Meadowvale Dairy, LLC owns and operates two National Pollutant Discharge Elimination System (NPDES) permitted, interconnected CAFOs as part of a dairy operation with a combined total of approximately 10,000 head of cattle on a combined 185 acres in northwestern Iowa.
On June 19, 2014, the Iowa Department of Natural Resources (State) conducted an inspection at one of Meadowvale’s CAFOs and observed manure and process wastewater spilling over the walls of a concrete bunker used to store manure. The manure and process wastewater then discharged into an unnamed tributary of the Big Sioux River.
Other discharges into a tributary of the Big Sioux River occurred on July 21, 2014, and July 22, 2014. Specifically, on July 21, 2014, the State received reports of an unauthorized discharge into a tributary of the Big Sioux River. Then, on July 22, 2014, the State observed manure laden process wastewater flowing into the same tributary. The State sampled the tributary at four downstream locations, and the results at all four locations showed elevated levels of Escherichia coli (E.coli), a pathogen found in manure and process wastewater.
The Complaint also alleges that Meadowvale failed to comply with certain requirements of its NPDES-permit, namely, maintaining depth-markers or emptying settled open feedlot effluent basins (SOFEBs). SOFEBs store solids and wastewater to prevent the discharge of these pollutants into surrounding waters.
Since 2001, the State has issued 12 notice-of-violations to Meadowvale for violations of its permit, including repeated failures to maintain adequate storage capacity in the facilities’ SOFEBs. The State has reported discharges from the facilities into waters of the United States on at least five separate occasions with high levels of E.coli, fecal coliform, ammonia, biochemical oxygen demand (BOD) and total suspended solids (TSS). Meadowvale’s unauthorized discharges have resulted in three penalty actions by the State in 2003, 2005 and 2010. On at least two separate dates, Meadowvale’s discharges also resulted in reported fish kills.
In the Complaint, the United States seeks civil penalties and injunctive relief. A trial date has not been set.
As with any civil case, a Complaint is merely an allegation and a defendant is presumed not liable until shown otherwise.
The case is being handled by Zachary N. Moor, Trial Attorney for the Environmental Enforcement Section of the Environment and Natural Resources Division, Christopher Muehlberger, Attorney, Office of Regional Counsel, United States Environmental Protection Agency Region 7, and Assistant United States Attorney Timothy L. Vavricek. The case was investigated by the Environmental Protection Agency.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 5:16-cv-4016-LTS.
Follow us on Twitter @USAO_NDIA.
Revenge Shooting Sends Felon Possessing a Firearm to PrisonRead the Press Release
A felon who possessed a loaded firearm in Cedar Rapids in July 2014 was sentenced last week to eight years in federal prison.
Fabian Taylor, Jr., age 28, most recently from Marion, Iowa, received the prison term after his October 15, 2015, guilty plea to the federal crime of felon in possession of a firearm. At the guilty plea hearing, Taylor admitted he knowingly possessed a loaded Ruger .357 revolver. He also admitted having a prior first-degree burglary conviction from Minnesota state court. At sentencing, the district court found Taylor possessed the loaded firearm in a car and, in fact, fired it at a man who had recently assaulted him.
Taylor was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 96 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Taylor is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek 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-0057.
Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Sentenced to Prison for Distribution of HeroinRead the Press Release
A Cedar Rapids man who distributed heroin resulting in an overdose was sentenced February 25, 2016, to more than 2 1/2 years in federal prison.
David Hudson, age 31, from Cedar Rapids, Iowa, received the prison term after an October 15, 2015, guilty plea to one count of distribution of heroin and fentanyl.
Hudson admitted that on January 20, 2015, he sold a mixture of heroin and fentanyl to a heroin user. Hudson watched the user inject the heroin in the bathroom of a convenience store. After leaving the bathroom, the user collapsed on the floor due to overdosing on the heroin. Paramedics were called to the scene and were able to revive the user and save his life by administering Narcan.
Hudson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hudson was sentenced to 34 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hudson 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 Dan Chatham and investigated by the Cedar Rapids 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-78.
Follow us on Twitter @USAO_NDIA.
Prison Term and Nearly $1 Million in Judgments Ordered Against Midamar Founder, Midamar, and ISARead the Press Release
William B. Aossey, Jr., age 74, of Cedar Rapids, Iowa, the founder of Midamar Corporation (Midamar) and ISA, Inc. (d/b/a Islamic Services of America, Inc.), who was convicted in July of last year of 15 counts of conspiracy, making false statements on export certificates, and wire fraud, was sentenced today to serve two years in federal prison. The corporate entities founded by Aossey were also sentenced.
A 19-count Indictment was filed against Aossey on October 23, 2014. Aossey was released on pretrial supervision subject to special conditions pending trial. A federal jury convicted Aossey on 15 of the 19 counts on July 13, 2015. He was acquitted on four counts alleging money laundering and conspiracy to commit money laundering. After the jury returned its verdict, the Court held a detention hearing and ordered Aossey held without bond pending further court order.
On July 22, 2015, the Court ordered Aossey detained pending sentencing and in its written Order found that Aossey “must remain detained pending sentencing because he has not established by clear and convincing evidence that he is not likely to flee if released under suitable conditions.” The Order also noted that Aossey had not earned the trust of the Court since he had violated the terms of his pretrial release by failing to notify his probation officer of contact with law enforcement. This failure related to local, state and federal law enforcement raiding his business while investigating illegal firearm shipments to Lebanon.
Evidence at trial showed that foreign governments imposed strict requirements on the import of religiously slaughtered halal beef. In addition to prescribing the approved methods of slaughter, the governments of Indonesia and Malaysia restricted halal beef imports to those products that originated from slaughter facilities specifically inspected and approved by each country. Midamar, a halal food distribution company, directed its employees to change markings on packages of beef product originating from an unapproved slaughter facility to make it appear as if the products originated from an approved slaughter facility.
As part of the scheme to ship misbranded meat products, USDA export documents were falsified and fake health certificates were generated by Midamar and ISA employees USDA, Food Safety and Inspection Service (FSIS) letterhead. ISA was responsible for certifying that the product originated from an approved facility, among other things. As a result of the fraud committed by Aossey, Midamar, and ISA, 22 shipments of beef products not otherwise eligible for import into Malaysia and Indonesia were accepted into commerce in those countries, contrary to the regulations of those countries. The scheme continued for about two and a half years.
Midamar and ISA each previously pleaded guilty to one count of conspiracy to: commit mail and wire fraud; cover up material facts by a scheme; make and use false statements and documents in a matter within the jurisdiction of the U.S. Department of Agriculture; make false statements on export certificates with the intent to defraud; and, sell misbranded meat in interstate commerce with the intent to defraud. The scheme to which Midamar and ISA pleaded included the acts charged against Aossey as well as numerous other fraudulent acts and practices concerning the sale and certification of halal beef around the world over about a five year period.
Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 24 months’ imprisonment and fined $60,000. Aossey was also ordered to forfeit $184,983 representing proceeds of the fraud. In addition, he was ordered to pay costs of prosecution of $16,824 and a special assessment of $1500. Aossey will be required to serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
At the sentencing hearing, the court found Aossey repeatedly perjured himself at his trial and thereby sought to obstruct justice. The court also found the scheme was sophisticated. However the court varied down from a guideline sentencing range of 87-108 months, citing Aossey’s advanced age and lack of criminal history.
Midamar was fined $20,000 and ordered to forfeit $600,000. Midamar was also placed on probation for five years. As a special condition of probation, Midamar will be require to abide by all terms of a consent decree entered into with the USDA Food Safety Inspection Service. The consent decree requires Midamar to take a variety of corrective actions and to remove certain corporate officials including Jalel Aossey and William B. Aossey from the business. Midamar was also ordered to pay a special assessment of $400.
ISA was fined $60,000 and ordered to pay special assessment of $400. ISA was also ordered to forfeit $600,000. The forfeiture judgment was ordered joint and several with Midamar. ISA must also abide by a 5 year term of probation.
United States Attorney Kevin W. Techau stated following sentencing, “These are serious offenses that were not an aberration—something that occurred once or twice. This defendant’s conduct was orchestrated, coordinated and planned. Most importantly, the conduct was driven by greed.” Techau went on to note, “Mr. Aossey directed his employees to change labels and falsify accompanying records to get beef products into foreign countries contrary to the import restrictions of those countries. By doing this, he placed his profit motive above the interests of foreign consumers of halal beef who wrongly believed the products they purchased and consumed had originated from slaughter facilities that met the strict religious slaughter requirements imposed, and specifically approved, by the regulatory agencies in each country.”
“IRS Criminal Investigation is committed to unraveling complex financial transactions and schemes of this nature to assist our law enforcement partners,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “The proceeds of illegal activity are used as fuel to continue their criminal conduct.”
Aossey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Aossey’s sons Jalel, age 41, and Yahya, age 46, also both from Cedar Rapids, have also been convicted in connection with same scheme as Midamar and ISA. Their sentencing date is March 11, 2016.
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and Timothy L. Vavricek and investigated by the United States Department of Agriculture Office of Inspector General Investigations and Internal Revenue Service Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers: 14-CR-00116-LRR (William B. Aossey, Jr.); 14-CR-00138-LRR (Midamar & ISA).
Follow us on Twitter @USAO_NDIA.
Cedar Falls Man Sentenced to Prison for Conspiracy to Distribute Pure MethamphetamineRead the Press Release
A Cedar Falls man who distributed pure methamphetamine was sentenced February 22, 2016, to more than 17 years in federal prison.
Seth Beard, age 36, from Cedar Falls, Iowa, received the prison term after an October 29, 2015, guilty plea to one count of conspiracy to distribute more than 50 grams of pure methamphetamine. At the guilty plea, Beard admitted that between December 2013 and August 2015 he was involved in the importation of over 8.7 kilograms (3.9 pounds) of pure methamphetamine which he distributed with others in the Cedar Falls area.
Beard was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Beard was sentenced to 205 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.
Beard 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 Dan Chatham 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 Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2042.
Follow us on Twitter @USAO_NDIA.
California Man Sentenced to Prison for Drug Charge and Money LaunderingRead the Press Release
A California man who distributed pure methamphetamine in Iowa and laundered some of the proceeds to a Mexican bank account was sentenced February 22, 2016, to 22 years in federal prison.
Jesus Lizarraga, age 34, from Yucaipa, California, received the prison term after a November 2, 2015, guilty plea to one count of conspiracy to distribute more than 50 grams of pure methamphetamine and one count of money laundering.
At the guilty plea, Lizarraga admitted he recruited individuals from Cedar Falls, Iowa, to assist in the distribution of over 11 kilograms (5 pounds) of pure methamphetamine. Lizarraga gave the Iowans methamphetamine in Cedar Falls, Omaha, Nebraska, and in California to distribute in the Cedar Falls area. Lizarraga laundered some of the proceeds from drug sales by directing others to wire the money from Iowa to a Mexican bank account.
Lizarraga was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lizarraga was sentenced to 264 months’ imprisonment. A special assessment of $200 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.
Lizarraga 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 Dan Chatham 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 Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2027.
Follow us on Twitter @USAO_NDIA.
United States Attorney Examines Financial FraudRead the Press Release
CEDAR RAPIDS, IA – United States Attorney Kevin W. Techau convened a second financial fraud training session today in Dubuque developed to examine various fraudulent schemes in an effort to strengthen prevention and detection efforts. The training brought together area financial institutions together with local, state and federal law enforcement partners. The first meeting was convened last week in Cedar Rapids with a future meeting scheduled in Waterloo on March 2nd. The Dubuque Financial Liaison Group assisted with organizing the training.
United States Attorney Kevin W. Techau stated, “Financial frauds are a serious crime that can result in federal prison time. Federal, state and local law enforcement agencies treat financial crimes very seriously.” Techau also noted, “The financial crimes training session will serve to strengthen communication between law enforcement, local banks and credit unions to protect the public and businesses in the greater Dubuque area. We caution anyone considering this type of criminal activity to reconsider.”
Bringing the partners together to discuss the types of fraud impacting banks, credit unions, local businesses and citizens strengthens the connections necessary to effectively respond. Without a coordinated approach, those who engage in fraudulent practices may go undetected. With a coordinated approach, prevention efforts are strengthened.
Representatives from the Federal Bureau of Investigation, U.S. Secret Service and Postal Service, and the Internal Revenue Service discussed their areas of expertise and current trends. The Dubuque County Attorney’s Office focused on responding to signs of fraud to include elder abuse, counterfeit financial instruments and other common schemes seen locally. A bank insider crime case study was examined by an Assistant United States Attorney.
With all of the parties detailing their role and responsibilities to combat these crimes, they developed a better understanding of how to work more effectively together to prevent and detect fraudulent practices and engage prosecutors to hold those who commit the crime accountable.
Follow us on Twitter @USAO_NDIA.
New York Man Sentenced to Federal Prison for Selling Counterfeit MerchandiseRead the Press Release
A man who sold counterfeit merchandise at a “Clearance Sale” located on 16th Ave. S.W. in Cedar Rapids, Iowa, was sentenced today to more than three years in federal prison.
Yahya Jawad, age 57, from Binghamton, New York, received the prison term after a September 29, 2015, guilty plea to one count of trafficking in counterfeit goods.
In a plea agreement, Jawad admitted that on January 9, 2015, he was selling counterfeit merchandise at a “Clearance Sale.” Law enforcement officers purchased three counterfeit items from him including a pair of headphones that appeared to be “Beats Audio” headphones and two purses. One appeared to be a “Michael Kors” purse and the other a “Louis Vuitton” handbag. After confirming that these items were counterfeit, law enforcement officers returned to the “Clearance Sale” and seized additional counterfeit items, including more headphones and purses, as well as other clothing items. In total, law enforcement seized more than $150,000 worth of counterfeit merchandise. Evidence at the sentencing hearing today also established that in December 2015, while on release pending sentencing, Jawad ran a similar “Liquidation Sale” in Topeka, Kansas. Law enforcement in Kansas ultimately conducted a search of this sale and seized more than $280,000 worth of additional counterfeit merchandise.
Jawad was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Jawad was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Department of Homeland Security and the Kansas Attorney General’s Office.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-83.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to Federal Prison for Unlawfully Possessing Two HandgunsRead the Press Release
A man who stole two handguns and broke into five homes in Minnesota and Iowa was sentenced on February 16, 2016, to more than three years in federal prison.
Raymond Hochstetler, age 26, of Seymour, Iowa, received the prison term after a guilty plea of one count of possession of firearms by an unlawful drug user and one count of possession of stolen firearms.
In a plea agreement, Hochstetler admitted he was a regular user of marijuana and methamphetamine in April 2014. He further admitted that he stole two handguns in Minnesota, and then, on April 8, 2014, drove from Minnesota into Northern Iowa with the two guns and a juvenile girl. At the sentencing hearing, Hochstetler admitted that he also broke into five homes, three in Minnesota and two in Iowa during his April 8, 2014 trip. The judge at the sentencing hearing described Hochstetler’s trips as a “crime spree.”
Hochstetler was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hochstetler was sentenced to 41 months’ imprisonment and fined $5,000. A special assessment of $200 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was investigated by the Mitchell County Sheriff’s Office and the Iowa Division of Criminal Investigation.
The case was prosecuted by Special Assistant United States Attorney Fedline Ferjuste.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-02025-LRR.
Follow us on Twitter @USAO_NDIA.
Dubuque Couple Charged with Being Drug Users in Possession of a FirearmRead the Press Release
Willie Earl Horsley, 29, and Raven Javay Harris, 25, from Dubuque, Iowa, have each been charged with one count of being prohibited people in possession of a firearm and ammunition. The charges are contained in a Complaint filed on February 16, 2016, in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about January 3, 2016, Horsley and Harris were in possession of a 45 caliber High Point semiautomatic handgun and .45 caliber ammunition. At the time that Horsley and Harris possessed the firearm and ammunition both were users of a controlled substance, specifically marijuana.
The Complaint alleges that on January 3, 2016, at approximately 11:43 p.m., police responded to the residence of Horsley and Harris in, after receiving a 911 call that a shooting had taken place. When police arrived, they discovered that a two-year old boy, J.H., had been shot in an upstairs bedroom. Horsley and Harris were present in the home downstairs.
The Complaint further alleges that later that evening, police obtained a warrant to search the residence. In addition to the firearms and ammunition seized during the execution of the warrant, police also seized from the kitchen a marijuana pipe, a marijuana grinder, and a marijuana bong. Police also seized a blue marijuana pipe from the bedroom shared by Horsley and Harris.
The Complaint also states that during the course of the investigation, both Horsley and Harris made statements to police. The night of the shooting, Horsley stated that he owned the .45 caliber firearm. Harris told police that the .45 caliber firearm belong to both her and Horsley. In subsequent interviews, Harris indicated that she uses marijuana whenever she gets overwhelmed, and had used at approximately 6:00 p.m. the day of the shooting. Horsley admitted to smoking marijuana occasionally, approximately two times per week, and that he had last used marijuana a few days prior to the shooting.
Allegations in the Complaint provide that during the course of the investigation, police obtained hair samples from Horsley and Harris in order to test for the presence of controlled substances. Both samples tested positive for the presence of marijuana.
If convicted, Horsley and Harris each face a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
“The possession of firearms and ammunition by those prohibited by law represents a serious danger to our communities,” said U.S. Attorney Techau. “Prosecuting those individuals who illegally keep firearms and ammunition is a priority of this office and an important part of keeping our communities safe.”
Horsley and Harris both appeared on February 17, 2016, in federal court in Cedar Rapids and were held in custody of the United States Marshals Service pending a detention hearing. Their next appearance for their detention hearings is set for February 23, 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 was referred to the United States Attorney’s Office by local authorities and is being prosecuted by Assistant United States Attorney Lisa C. Williams. The case was investigated by the Dubuque Police Department and the Bureau of Alcohol Tabaco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-MJ-33
Follow us on Twitter @USAO_NDIA.
Waterloo Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Forrest Rindels, age 60, of Waterloo, Iowa, has been charged with one count of receipt of child pornography and three counts of possession of child pornography. The charges are contained in an Indictment unsealed on February 8, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2001 and 2015, Rindels received child pornography and possessed it on a computer and two external storage devices.
If convicted, Rindels faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of eighty 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.
Rindels appeared for a detention hearing on February 17, 2016, in federal court in Cedar Rapids and was released on bond. Rindels’ next appearance for trial is set for April 11, 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 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.
Follow us on Twitter @USAO_NDIA.
Former Marion Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Andrew Schrock, age 32, formerly of Marion, Iowa, has been charged with receipt and possession of child pornography. The charges are contained in an Indictment filed on January 12, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2013 and 2014, Schrock received and possessed child pornography.
If convicted, Schrock faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Schrock appeared on February 9, 2016, in federal court in Cedar Rapids and was held without bond. Schrock’s next appearance for trial is set for April 11, 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 was investigated by the Marion 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 16-0006.
Follow us on Twitter @USAO_NDIA.
Former Dubuque Man Charged with Distribution, Receipt, and Possession of Child PornographyRead the Press Release
Robert Even, age 45, of Bellevue, Iowa, formerly of Dubuque, has been charged with distribution, receipt, and possession of child pornography. The charges are contained in an Indictment unsealed on February 8, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2013 and 2014, Even distributed, received, and possessed child pornography.
If convicted, Even faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Even appeared for a detention hearing on February 11, 2016, in federal court in Cedar Rapids and was released on bond. Even’s next appearance for trial is set for April 11, 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 was investigated by the Dubuque County Sheriff’s Office 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 16-1002.
Follow us on Twitter @USAO_NDIA.
Former Bank Officer Sentenced to 41 Months’ in Federal Prison for EmbezzlementRead the Press Release
A former officer of the board of Country Bancorporation who embezzled more than $1,000,000 over nearly a decade was sentenced on February 16, 2016, to more than three years in federal prison.
Heidi Wagler, age 50, from Wayland, Iowa, received the prison term after a October 6, 2015, guilty plea to one count of embezzlement by a bank officer.
In a plea agreement, Wagler admitted that from June 2004 through October 2013 she embezzled at least $864,835 from Country Bancorporation, which controlled seven banks, by paying herself salary to which she was not entitled. At the time, Wagler was an officer and employee of Country Bancorporation and was in charge of doing payroll for each of these banks. She was also a member of the Board of Directors of one of the banks and her husband, Russell Wagler, was the Director, President, and CEO of that same bank. Wagler further admitted that, although she was entitled to compensation from Country Bancorporation for doing the payroll for its banks, she paid herself excess compensation from each of the seven banks at various times over the course of her embezzlement. At sentencing, she also admitted that, from January 2008 through November 2013, she paid her husband more than $200,000 in additional compensation to which he was not entitled. At the sentencing hearing, the judge stated that Wagler’s crime was a “pure crime of greed, of avarice.”
Wagler was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wagler was sentenced to 41 months’ imprisonment and fined $50,000. A special assessment of $100 was imposed, and she was ordered to make $1,065,799 in restitution to Country Bancorporation. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Wagler was released on the conditions of release 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 Anthony Morfitt and investigated by the Federal Bureau of Investigation and Federal Deposit Insurance Corporation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00089.
Follow us on Twitter @USAO_NDIA.
Vinton Woman Charged with Providing a Firearm to an Unlawful User of MarijuanaRead the Press Release
Robyn Lynn Merchant, a/k/a Robyn Lynn Winterroth, 52, from Vinton, Iowa, has been charged with one count of providing a firearm to a prohibited person. The charges are contained in a Complaint unsealed today in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about February 23, 2015, Merchant provided a Walther HK MP5 22LR semiautomatic rifle to her son, D.W., a minor child. The Complaint further alleges that at the time Merchant provided D.W. the semiautomatic rifle, Merchant knew or had reasonable cause to believe that D.W. was an unlawful user of marijuana.
Allegations in the Complaint provide that on February 24, 2015, at approximately 6:19 p.m., police responded to the residence of Merchant in Vinton, Iowa, after receiving a 911 call that a shooting had taken place. When police arrived, they discovered that a 14 year old girl, E.R., had been shot in an upstairs bedroom. That bedroom belonged to D.W., Merchant’s 16 year old son. D.W. was present in his bedroom at the time of the shooting. Also present in the bedroom were J.H. and W.H., both 16 year old males.
The Complaint further alleges that the investigation revealed that at the time of the shooting, D.W. was an unlawful user of marijuana. Several associates of D.W.’s admitted to observing D.W. use marijuana in D.W.’s bedroom at some time during 2014 and 2015, prior to the shooting incident. A urine sample obtained on February 24, 2015, from D.W. tested positive for the presence of marijuana. During a subsequent interview, D.W. admitted to first smoking marijuana at the age of 14, and becoming a regular marijuana user at age 15.
Allegations in the Complaint also state that when Merchant provided the firearm to D.W. on or about February 23, 2015, she knew and had reasonable cause to believe, that D.W. was then an unlawful user of marijuana. Specifically, the Complaint alleges that on the night of the shooting, police observed indicators of drug and alcohol use in plain view in D.W.’s bedroom. That night, from D.W.’s bedroom police seized a marijuana smoking pipe, drug paraphernalia, approximately seven ounces of marijuana individually packaged into eight separate plastic bags, and drug packaging materials. During a subsequent interview, Merchant admitted to police that she was aware that D.W. was a marijuana user.
If convicted, Merchant faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
“Federal law prohibits certain people from possessing guns and ammunition,” said U.S. Attorney Techau. “Identifying and prosecuting those who knowingly provide guns to prohibited persons is a priority of this office and an important part of keeping our communities safe.”
Merchant appeared today in federal court in Cedar Rapids and was held in custody of the United States Marshals Service pending a detention hearing. Merchant’s next appearance for her detention hearing is set for February 18, 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 was referred to the United States Attorney’s Office by local authorities and is being prosecuted by Assistant United States Attorney Lisa C. Williams. The case was investigated by the Vinton Police Department, the Iowa Department of Public Safety, the Department of Homeland Security, and the Bureau of Alcohol Tabaco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-MJ-31.
Follow us on Twitter @USAO_NDIA.
Media Advisory: Town Hall Meeting Prescription Pain Killers and the Heroin EpidemicRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office has scheduled a Town Hall Meeting on February 10th to discuss prescription pain killers and the heroin epidemic. Every day, 44 people in the U.S. die from overdose of prescription painkillers. Yearly, overdose deaths exceed motor vehicle deaths and firearms deaths. The most recent data available indicates that in 2013, over 46,000 people in the U.S. died from drug overdoses with more than half of that number being caused by prescription painkillers and heroin. The wife of a correctional officer that died as a result of his addiction to painkillers will discuss the family tragedy.
Viewed as a national challenge requiring a community solution, the meeting will bring together community leaders and members, clergy, law enforcement, educators, health care professionals, business leaders, employers and employees to exchange information and strategies to address the epidemic plaguing eastern Iowa.
Topics include an examination of the national threat, opioid-based deaths in Iowa, heroin in Iowa in urban and rural communities, heroin then and now, responding to the addictions, and prevention education in schools, businesses and our communities. Visit www.faceboook.com/EasternIowaHeroinInitiative to learn more.
U.S. Attorney Kevin W. Techau will be present. The event is open to the public.
Event Details
When: February 10, 2016 (flyer is attached)
Where: Cedar Rapids Downtown Public Library (Whipple Aud.), 450 5th Ave SE
Time: Begins at 7:00 p.m., and ends at 9:00 p.m.
Press wishing to attend should contact AUSA Steve Young at 319-731-4037, or by emailing him at [email protected].
Former Anamosa Correctional Officer Sentenced to PrisonRead the Press Release
A former Anamosa State Penitentiary correctional officer who smuggled contraband into the prison for prisoner use and illegally used controlled substances while possessing assault rifles on duty was sentenced today to more than four years in federal prison.
Garrett Barton, age 29, from Anamosa, Iowa, received the prison term after an October 13, 2015, guilty plea to one count of a Hobbs Act Extortion Under Color of Official Right (accepting bribes to smuggle contraband into the prison) and one count of being an unlawful drug user in possession of firearms.
In a plea agreement, Barton admitted that from July 2010 until February 2015, he was employed as a correctional officer with the Iowa Department of Corrections, serving most of that time at the Anamosa State Penitentiary. In November 2014, Barton accepted cash from an inmate (provided to him through the inmate’s girlfriend) to smuggle two cell phones into the prison for use by inmates. Other public records demonstrated that Barton also smuggled controlled substances into the prison for inmate use. He also sold and traded controlled substances with other correctional officers. The plea agreement reflects that Barton admitted he was an unlawful drug user while employed at the penitentiary. During that time he possessed four personal firearms, and was issued assault rifles scores of times while standing guard duty in the prison towers.
“This defendant chose to place his own greed above the safety of other Iowa Department of Corrections employees as well as the public he was sworn to protect. Those who agree to smuggle contraband into federal and state prisons can expect to join the inmates from whom they are attempting to profit,” said United States Attorney Kevin W. Techau.
Anamosa State Penitentiary Warden William Sperfslage stated after Barton’s sentencing, “Mr. Barton failed in his mission to the citizens of Iowa that he was hired to protect. He also placed his coworkers in danger by providing contraband to offenders. In doing so, we believe it very appropriate that he is now sentenced to a period of incarceration in a correctional facility.” Sperfslage went on to add, “While we find these actions unacceptable, we also recognize they are his actions and not a reflection on the remaining staff that perform their duties every day and who model the positive behavior we work to instill in the offenders we supervise.”
Barton was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Barton was sentenced to 57 months’ imprisonment and fined $7,500. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Barton was released pending imprisonment and is to surrender to the United States Marshals Service in Cedar Rapids on February 24, 2016.
The case was prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Erin Eldridge, and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, and the Iowa Department of Corrections.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-cr-0091-LRR.
Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Sentenced to 15 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
A man who illegally possessed firearms was sentenced yesterday to 15 years in federal prison, the maximum prison term allowed for his crimes.
Kendan Fonville, also known as “Fudd,” age 23, from Cedar Rapids, Iowa, received the prison term after an April 28, 2015, guilty plea to possessing a firearm as drug user and possessing a firearm with an obliterated serial number.
In a plea agreement, Fonville admitted that he illegally possessed a Bersa Thunder .380 caliber pistol in March 2012. Fonville admitted that the pistol had an obliterated serial number, that he knew the serial number was obliterated, and that he was an unlawful drug user at the time he possessed the pistol. At yesterday’s sentencing hearing, witnesses testified that in March 2012, defendant assaulted a woman with a bottle, knocking her unconscious, and then shot rounds into the air from an AK-47 assault rifle in the middle of the street on the Southeast side of Cedar Rapids. Evidence at the sentencing hearing also showed that Fonville severely beat another inmate in November 2014 while he was awaiting trial and sentencing in this matter.
Fonville has been in federal custody since an October 2014 detention hearing in front of Chief United States Magistrate Judge Jon Stuart Scoles. In ordering him detained, Judge Scoles concluded that “despite being only 22 years old, [Fonville] has approximately 30 convictions,” including “11 convictions for assault, 6 convictions for interference with official acts, 4 convictions for public intoxication, and 3 convictions for trespass.”
In sentencing Fonville to a 15-year prison term, United States District Court Chief Judge Linda R. Reade noted defendant’s violent past, the seriousness of his federal offenses, and found that he “poses a substantial risk of danger to the public.” There is no parole in the federal system.
“Targeting violent criminals for federal investigation and prosecution is a priority for the Northern District of Iowa United States Attorney’s Office while working with the entire federal state and local law enforcement community,” said United States Attorney Techau. “One way to stop violent criminals who endanger our communities is for law enforcement and prosecutors to work together. This case is a good example of how this kind of partnership makes a difference. The individual sentenced is a very violent person. His record speaks for itself. There is no doubt he is a very dangerous man that needs to be locked up to protect society.”
“This conviction is the result of a cooperative effort between area law enforcement and the U.S. Attorney to apprehend and hold accountable an individual for both dangerous and illegal activity in our community,” said Cedar Rapids Chief of Police Wayne Jerman. “We are grateful to the U.S. Attorney’s Office and our federal law enforcement partners for helping make Cedar Rapids a safer community.”
The case was prosecuted by Assistant United States Attorneys C.J. Williams and Ravi T. Narayan and was investigated by the Federal Bureau of Investigation Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-CR-117.
Follow us on Twitter @USAO_NDIA.
Iowa Businessmen Indicted for Failing to Pay Employment TaxesRead the Press Release
CEDAR RAPIDS, IA – A grand jury sitting in Cedar Rapids, Iowa, returned an indictment on January 21, 2016 charging two Iowa businessmen with federal employment tax violations, announced U.S. Attorney Kevin W. Techau for the Northern District of Iowa and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Randy Less, a resident of Hopkinton, Iowa, and Darrell Smith, a resident of Forest City, Iowa, are each charged with multiple counts of willfully failing to collect, truthfully account for and pay over federal income, Social Security, and Medicare taxes that were withheld from the wages of the employees of Permeate Refining, Inc., which was in the business of ethanol production.
According to the allegations in the indictment, Less was the majority owner, a general partner, and the general manager of Permeate Refining, Inc. in Hopkinton, Iowa. In those roles, Less had the responsibility to collect, truthfully account for, and pay over to the Internal Revenue Service (IRS) federal employment, Social Security, and Medicare taxes withheld from the wages of his employees. From approximately the fourth quarter of 2009 and continuing through the fourth quarter of 2010, Less is alleged to have willfully failed to pay over to the IRS more than $116,000 in withheld taxes.
The indictment further alleges that a company called Algae Energae purchased an ownership interest in Permeate in September 2009. After that purchase, it is alleged that Smith, a corporate officer and manager of Algae Energae, also had the responsibility to collect, truthfully account for, and pay over to the IRS taxes withheld from the wages of Permeate’s employees. From approximately the first quarter of 2011 and continuing through the third quarter of 2012, both Less and Smith are alleged to have willfully failed to pay over to the IRS more than $307,000 in withheld taxes.
If convicted, the defendants face a statutory maximum sentence of 5 years in prison and a $250,000 fine for each count.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Techau thanked special agents of IRS Criminal Investigation, the FBI, the U.S. Postal Inspection Service, and the U.S. Environmental Protection Agency, who investigated the case and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting the case.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2002-LRR.
Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Convicted of Gun Theft ChargeRead the Press Release
A man who stole a gun from a Cedar Rapids gun store was convicted by a jury today after a 2-day trial in federal court in Cedar Rapids.
Dante Glinn from Cedar Rapids was convicted of theft of a firearm from a licensed dealer. The verdict was returned following about four hours of deliberations.
The evidence at trial showed that, on August 25, 2015, Glinn walked into Sports Outfitters, a Cedar Rapids gun store, reached behind the counter, and stole a .45 caliber Kimber pistol before fleeing the scene. Surveillance videos captured Glinn stealing the pistol. Testimony at trial established that Glinn used an alias to get medical treatment at a local hospital for a wound visible in the videos the same evening as the theft.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Glinn remains in custody of the United States Marshal pending sentencing. He faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case was investigated by the Cedar Rapids Safe Street Task Force. The task force is composed of representatives from the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement; United States Marshals Service; Iowa Division of Criminal Investigation; Cedar Rapids Police Department; Marion Police Department; Sixth Judicial District Department of Correctional Services; Linn County Sheriff’s Office; and Iowa Department of Inspections and Appeals. The case is being prosecuted by Assistant United States Attorney Jacob Schunk.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00093.
Follow us on Twitter @USAO_NDIA.
Riceville Man Sentenced to over 11 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced January 22, 2016 to over 11 years in federal prison.
Adam Haacke, age 27, from Riceville, Iowa, received the sentence after an October 26, 2015 guilty plea to one count of possession of child pornography. At the plea hearing, Haacke admitted that, between 2014 and 2015, he knowingly possessed child pornography on a hard drive.
Haacke was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Haacke was sentenced to 135 months’ imprisonment. A special assessment of $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 Hancock County Sheriff’s Office, the Mitchell County Sheriff’s Office, and the Mason City 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 15-2029.
Follow us on Twitter @USAO_NDIA.
Court Approves Consent Decree in Clean Water Act Case Filed Against City of WaterlooRead the Press Release
CEDAR RAPIDS, IA - The city of Waterloo was sued on October 26, 2015 by the United States and the State of Iowa on multiple counts alleging violations of the Clean Water Act and Iowa law. The violations involved the illegal discharge of untreated sewage, permit violations, and violations relating to the city’s operation and maintenance of its sewer system.
On January 20, 2016, the Federal District Court in Cedar Rapids signed a consent decree between the parties. The consent decree requires the city of Waterloo to comply with the Clean Water Act and take all steps necessary to come into compliance with the Act. The consent decree requires the city to meet several benchmarks, including:
-
Continuing to implement rainfall and flow monitoring and a footing drain removal program;
-
Implementing a Capacity, Management, Operations and Maintenance (CMOM) Program Plan for the city’s sewer system;
-
Completing targeted Condition and Capacity Assessments of the sewer system;
-
Creating a Hydraulic Model of the sewer system;
-
Developing a Sanitary Sewer Master Plan that proposes specific remedial measures for the sewer system; and
-
Completing the remedial measures set forth in the Master Plan.
This settlement mandates that Waterloo make critical structural changes to its sanitary sewer system to improve the quality of Iowa’s waterways. The enforceable schedule established by this consent decree will ensure completion of upgrades needed to handle wet weather events.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “Leadership in the city of Waterloo should be commended for working through this difficult situation and committing to make the improvements to water quality that will result from the settlement.” Techau, however, noted that, “For years the city has been releasing raw sewer water containing pathogens into the Cedar River, threatening public health and impacting all citizens—those who rely on the Cedar River for drinking water as well as Iowans who love to fish and use the river for recreation. So this settlement is not only great news for the citizens of Waterloo but for everyone that cares about clean water.”
Techau went on to add, “This is especially true for those Iowans who live down river from Waterloo. The settlement will safeguard water quality and protect human health by ensuring much needed upgrades to the Waterloo sewer infrastructure that will reduce combined sewage overflows and the public’s exposure to harmful pathogens.”
The case was handled by the Department of Justice, Environmental and Natural Resources Division Trial Attorney Danica Anderson Glaser, Assistant United States Attorney Matthew J. Cole, Assistant Iowa Attorney General David R. Sheridan, the Environmental Protection Agency, and the Iowa Department of Natural Resources.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 6:15-cv-02087.
Follow us on Twitter @USAO_NDIA.
-
Four Individuals Involved in O’Brien County Meth Conspiracy Sentenced to Federal PrisonRead the Press Release
On January 25, 2016, the last of two men and two women who conspired together to distribute methamphetamine was sentenced to federal prison.
Isaac Esquivel, 37, from Sanborn, Iowa; Mackenzie Jellema, 31, from Sioux City, Iowa; Joe Leal, 49, from Hartley, Iowa; and Valerie Ortega, 30, from Sanborn, Iowa, each received prison terms after guilty pleas to conspiracy to distribute methamphetamine.
At the guilty pleas, each admitted their involvement in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the O’Brien County, Iowa area. In total, law enforcement made undercover purchases and seizures from the group totaling 271.78 grams of methamphetamine.
Ortega and Esquivel were sentenced in Sioux City by United States District Court Judge Donald E. O’Brien, and Leal and Jellema were sentenced by United States District Court Judge Mark W. Bennett. Esquivel was sentenced to 36 months’ imprisonment and a term of supervised release of two years. Jellema was sentenced to 48 months’ imprisonment; Leal was sentenced to 81 months’ imprisonment and Ortega was sentenced to 42 months’ imprisonment. A special assessment of $100 was imposed for each. Jellema, Leal and Ortega must each also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Department of Narcotics Enforcement, Spencer Iowa Police Department, Clay County Iowa Sheriff’s Office, O’Brien County Iowa Sheriff’s Office, Sheldon Iowa Police Department, Iowa Great Lakes Drug Task Force and the Southwest Iowa Narcotics Enforcement Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-4052. Follow us on Twitter @USAO_NDIA.