Southern District of Iowa
Press releases recorded for this federal judicial district.
Five Individuals Indicted for Involvement in Armed Robberies of Des Moines Businesses and Distribution of DilaudidRead the Press Release
Indictment alleges defendants participated in string of Git-N-Go robberies and used robbery proceeds to purchase and distribute controlled substances
DES MOINES, IA - On November 22, 2016, United States Attorney Kevin E. VanderSchel announced the return of an indictment stemming from an eight month investigation into a series of robberies occurring at businesses in Des Moines, Iowa. The indictment charges Alexander Ray Hamilton with Conspiracy to Interfere with Commerce by Robbery; Conspiracy to Distribute Dilaudid; fifteen counts of Interference with Commerce by Robbery; two counts of Distribution of a Controlled Substance; Attempted Interference with Interstate Commerce by Robbery; Bank Robbery; and Use of a Communication Facility to Facilitate Distribution of Dilaudid.
Sarah Victoria Coe is charged with Conspiracy to Interfere with Commerce by Robbery; Interference of Commerce by Robbery; and Bank Robbery.
Shelly Shannon Avery is charged with Conspiracy to Interfere with Commerce by Robbery; and two counts of Interference of Commerce by Robbery.
Chris Brian Avery is charged with Conspiracy to Interfere with Commerce by Robbery; Use of a Communication Facility to Facilitate Distribution of Dilaudid; and Interference with Commerce by Robbery.
Luke Martin, Jr. is charged with Conspiracy to Distribute Dilaudid and two counts of Distribution of Dilaudid.
The Indictment alleges Defendants Hamilton, Coe, Shelly Avery, and Chris Avery conspired from as early as March 21, 2016, to April 20, 2016, to interfere with commerce by robbery and to commit bank robbery. One or more of the defendants would identify locations to rob, which included various locations of Git-N-Go, Kum & Go, Hy-Vee, and U.S. Bank in Des Moines. As part of the conspiracy, one or more defendants would obtain transportation to and from the robbery, surveil the robbery locations, and ultimately commit the robbery. Defendant Hamilton used some of the proceeds of the robberies to purchase and distribute controlled substances.
An indictment is only an accusation, and the defendants are presumed innocent unless and until proven guilty.
The joint investigation was conducted by the Des Moines Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Attorney's Office for the Southern District of Iowa.
Federal Search Warrants ExecutedRead the Press Release
Council Bluffs, Iowa – On November 22, 2016, federal search warrants were executed at the following locations in Iowa and Nebraska:
• Two warrants executed on Tenth Avenue, Council Bluffs.
• Avenue B, Council Bluffs.
• South 19th Street, Council Bluffs.
• North 15th Street, Omaha.
• North 93rd Street, Omaha.
• Rees Street, Omaha.
• South 39th Street, Omaha.
• North 111th Plaza, Omaha.
• South 48th Street, Omaha.
The searches at these locations were official law enforcement actions involving agents and investigators from the Federal Bureau of Investigation Task Force. No other information or comments will be released until documents have been filed with the court as part of the public record.
Nebraska Resident Sentenced for Failing to Register as a Sex Offender in the State of IowaRead the Press Release
Council Bluffs, IA- On November 17, 2016, Kenneth J. Heavlow, Jr., a 34 year-old Douglas County, Nebraska resident, was sentenced by United States District Court Chief Judge John A. Jarvey, to 24 months in prison followed by five years of supervised release for failing to register as a sex offender, announced United States Attorney Kevin E. VanderSchel.
Heavlow entered a guilty plea on August 11, 2016, to Failure to Register with the Sex Offender Registry in Iowa. Heavlow was required to register as a sex offender in the State of Iowa as a result of a 2008 conviction for attempted child enticement in Sarpy County, Nebraska. An investigation revealed Heavlow moved from a residence in Omaha, Nebraska and was residing in Council Bluffs, Iowa, under a false name, to avoid registering in Iowa.
The investigation was conducted by the United States Marshal Service and the case prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Missouri Valley Resident Sentenced for Possession of Child PornographyRead the Press Release
Council Bluffs, IA- On November 17, 2016, Steven Robert Hill, a 33 year-old former Missouri Valley resident, was sentenced by Chief United States District Court Judge John A. Jarvey, to 54 months in prison to be followed by fifteen years of supervised release for possession of child pornography, announced United States Attorney Kevin E. VanderSchel.
Hill entered a guilty plea to the charge on June 9, 2016. The investigation began with a report of a domestic assault involving Hill as a victim. During the investigation, law enforcement learned Hill was in possession of child pornography. A search of Hill’s residence located data storage devices that contained child pornography images. Shortly after law enforcement obtained the images, Hill moved to the State of Washington.
This investigation was conducted by the Missouri Valley Police Department, the Iowa Internet Crimes Against Children Task Force -- Iowa Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Credit Union Employee Sentenced to Prison for Embezzling Nearly $2.5 MillionRead the Press Release
DES MOINES, IA – On November 15, 2016, Linda Lee Clark, 68, of Corydon, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 78 months in prison for embezzlement by a credit union employee, announced United States Attorney Kevin E. VanderSchel. Clark was ordered to serve five years of supervised release following her imprisonment and to pay $2,494,809.33 in restitution.
On July 15, 2016, Clark pled guilty to a United States Attorney’s Information charging her with embezzlement by a credit union employee. Clark admitted to embezzling approximately $2,494,809 of funds from the SCICAP Credit Union in Chariton, Iowa, from the time she began working there as a bookkeeper in 1978 until she resigned in August 2015. Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. As a result of Clark’s embezzlement, the Credit Union became insolvent and was forced into liquidation.
This matter was investigated by the National Credit Union Administration and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Prison for Making a False Statement During Purchase of a FirearmRead the Press Release
DAVENPORT, IA – On November 14, 2016, Leonard Deshawn Boyd, 24, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 18 months in prison for making a false statement during purchase of a firearm, announced United States Attorney Kevin E. VanderSchel. Boyd was ordered to serve three years of supervised release following his prison term, and pay $100 to the Crime Victims’ Fund.
Boyd pleaded guilty to making a false statement during the purchase of a firearm on June 20, 2016. The investigation revealed on November 21, 2015, Boyd purchased a Ruger 9 mm pistol from a pawn shop in Davenport. When filling out the required ATF form (Form 4473) he listed a false address.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Davenport Man Sentenced to Prison for Making False Statements to the Social Security AdministrationRead the Press Release
DAVENPORT, IA – On November 14, 2016, Damarcus Laron Liddell, 29, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 18 months in prison for failure to disclose information to the Social Security Administration (SSA) and false statements to the SSA, each count to run concurrently, announced United States Attorney Kevin E. VanderSchel. Liddell was ordered to serve three years of supervised release following his prison term, and pay $200 to the Crime Victims’ Fund.
Liddell pleaded guilty to failure to disclose information and making false statements to the SSA on June 27, 2016. During the investigation, it was discovered Liddell applied for disability benefits and was sent to be evaluated by two doctors. At the doctor appointments, Liddell exhibited outrageous behavior suggesting he was unable to understand simple commands and was non-verbal. The agents uncovered documents to support the position that Liddell was feigning a mental illness and had falsely represented to the doctors his physical and mental condition. Additionally, when filling out the SSA forms, Liddell falsely stated he did not have any specialized training, omitting the fact he attended LA James School of Cosmetology.
This matter was investigated by the Social Security Administration – Office of the Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa
Davenport Man Sentenced to Prison for Making False Statements During Purchase of FirearmsRead the Press Release
DAVENPORT, IA – On November 14, 2016, Algerron Lee Goldsmith, 26, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 18 months in prison for three counts of making false statements during purchase of firearms, to run concurrently, announced United States Attorney Kevin E. VanderSchel. Goldsmith was ordered to serve three years of supervised release following his prison term, pay $300 to the Crime Victims’ Fund, and pay $1,998 in restitution to the State of Iowa.
Goldsmith pleaded guilty to three counts of making a false statement during the purchase of a firearm on June 29, 2016. According to the plea agreement, on February 21, 2015, Goldsmith bought a HI Point 380 caliber pistol; on May 2, 2015, Goldsmith bought a HI Point 9 mm pistol; and on June 19, 2015, Goldsmith bought a HI Point 45 caliber pistol. At each purchase, Goldsmith listed a false address on the 4473 Form, which is a document required by the Bureau of Alcohol, Tobacco, Firearms and Explosives to be filled out at the time of purchase.
During the investigation into the false statements on the 4473 Forms, a fraudulent Social Security document was found at Goldsmith’s residence. This document was used to obtain rent rebate monies in 2014 and 2015 in the amount of $1,998. Goldsmith agreed to pay back the amount reimbursed to him based on the fraudulent document he submitted.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Washington, Iowa Woman Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA- On November 9, 2016, Brandy Kay Reschly, age 35, of Washington, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 50 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Reschly was ordered to serve three years of supervised release following her term of imprisonment and to pay $100 to the Crime Victims Fund.
On June 3, 2016, Reschly pleaded guilty and admitted she participated in a conspiracy to distribute methamphetamine beginning as early as May 2015 and continuing through November 2015. This charge was a result of an investigation conducted by law enforcement of methamphetamine trafficking that occurred in Washington, Johnson, Muscatine, and Blackhawk counties in Iowa and Phoenix, Arizona.
This matter was investigated by the Washington County Sheriff’s Department, the Johnson County Drug Task Force, the Washington Police Department, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Mount Pleasant Man Sentenced to Prison for Enticement of a MinorRead the Press Release
DAVENPORT, IA – On November 9, 2016, Kevin Dwane Carpenter, 51, of Mount Pleasant, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 240 months in prison for enticement of a minor, announced United States Attorney Kevin E. VanderSchel. Carpenter was ordered to serve fifteen years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Carpenter pleaded guilty to enticement of a minor on May 10, 2016. According to the plea agreement, in July 2014, an agent with the Iowa Division of Criminal Investigations responded to a Craigslist advertisement posted by Carpenter entitled, "Looking for young boy." The agent responded to the advertisement purporting to be a 15-year-old male and Carpenter initiated conversations about performing sexual acts. On August 28, 2014, Carpenter arranged to meet the "child" at a location in Mount Pleasant. At the meet location, agents confronted Carpenter and he admitted he was there to meet a 15-year-old boy with plans to go back to his residence to engage in sexual acts. A forensic examination of Carpenter’s electronic devices showed Carpenter had been communicating with other minors.
This matter was investigated by the Burlington Police Department and the Iowa Division of Criminal Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Shelby County, Iowa Resident Sentenced for Possession of Child PornographyRead the Press Release
Council Bluffs, IA- On October 20, 2016,Michael Charles Garreans, a 55 year-old resident of Harlan, Iowa was sentenced by United States District Court Judge Stephanie M. Rose, to 60 months in prison for possession of child pornography announced United States Attorney Kevin E. VanderSchel. Garreans’ term of imprisonment is to be followed by seven years of supervised release.
On June 9, 2016, Garreans entered a guilty plea to a federal indictment, charging Garreans with possessing child pornography on or about July 18, 2014. The charge was the result of an investigation into the posting of a video, which contained images of two unclothed minor girls, on a web site being monitored by law enforcement. Law enforcement followed up with a search warrant of Garreans’ residence and located a computer that contained hundreds of images of child pornography.
The investigation was conducted by the Iowa Division of Criminal Investigation, the Harlan, Iowa Police Department and the United States Marshal’s Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former City Clerk Sentenced to Prison for Improper Use of City Funds and Arson of Community BuildingRead the Press Release
Des Moines, IA – On October 21, 2016, Dorothy L. Dillinger, 61, was sentenced by United States District Court Judge James E. Gritzner to 60 months in prison for mail fraud and malicious use of fire, announced United States Attorney Kevin E. VanderSchel. Dillinger was ordered to serve three years of supervised release following her prison term and to pay $200 towards the Crime Victims’ Fund. A determination regarding restitution will be made at a separate hearing, which date has not yet been scheduled.
Dillinger pled guilty to these offenses on May 24, 2016. As part of her plea, Dillinger admitted to engaging in a scheme to defraud the City of Casey, Iowa, from around 2009 until August 2014, while serving as the City Clerk. As part of that scheme, Dillinger admitted that she used the City’s credit card and City funds to purchase items for personal use without the knowledge or approval of the City Council. Dillinger used the United States Postal Service to mail City checks to pay the resulting credit card statements. Dillinger also admitted to making unauthorized payments to herself for personal expenses without City Council approval or knowledge. Dillinger failed to disclose these expenditures to both the City Council, as well as in minutes from City Council meetings. Dillinger also admitted to maliciously destroying the City of Casey Community Building, which was used in activities affecting interstate commerce, by means of fire. The city building was destroyed by fire from the late night of August 19th into the morning of August 20th in 2014.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Iowa Department of Public Safety State Fire Marshal Division, and the Guthrie County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Prison for Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA- On October 21, 2016, Lloyd Cortez Horne, age 28, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months imprisonment after pleading guilty to felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Horne was ordered to serve three years of supervised release following his term of imprisonment and to pay $100 towards the Crime Victims Fund.
On March 15, 2016, Horne was stopped by the Davenport Police Department for an outstanding warrant. As a result of that stop, officers found and seized a loaded Ruger 9mm handgun. Horne had prior felony convictions in 2008 and 2009.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Prison for EscapeRead the Press Release
DAVENPORT, IA- On October 20, 2016, Vincent Salvitory Brocato, age 35, of Davenport, Iowa, was sentenced by District Court Judge Rebecca Goodgame Ebinger to fourteen months imprisonment after pleading guilty to escape, announced United States Attorney Kevin E. VanderSchel. Brocato was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
In December 2015, Brocato was transferred to the Davenport Residential Re-Entry Center to serve the remainder of a federal sentence from a conviction for conspiracy to manufacture methamphetamine. On April 6, 2016, Brocato was advised that he was placed on restriction after violating the Residential Re-Entry Center rules. Without authorization, Brocato left and did not return. A federal complaint was filed and an arrest warrant obtained for escape. On April 13, 2016, a Davenport Police Department officer made contact with a subject in VanderVeer Park, identified him as Brocato and placed him under arrest.
This matter was investigated by the United States Marshals Service and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Burlington Man Sentenced to 160 Months in Prison for Distributing Child PornographyRead the Press Release
DAVENPORT, IA- On October 21, 2016, James Henry McGinity, age 67, of Burlington, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 160 months in prison for distributing child pornography, announced United States Attorney Kevin E. VanderSchel. McGinity also will be required to serve a ten-year term of supervised release following his imprisonment. Chief Judge Jarvey also ordered that a computer, a camera, and digital storage media be forfeited. No fine was imposed.
On May 26, 2016, McGinity pled guilty to distribution of child pornography, the first count of a two-count Indictment. McGinity was also charged with possessing child pornography on December 16, 2015. As part of a written plea agreement, McGinity admitted that he distributed child pornography through the internet on August 11, 2013, and that on December 16, 2016, he possessed child pornography. The second charge, possession of child pornography, was dismissed at the sentencing hearing.
The investigation was conducted by the Iowa Department of Public Safety, the Iowa Internet Crimes Against Children Task Force, the Scott County Sheriff’s Office, and the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Central Iowa Psychiatrist Pleads Guilty to Health Care FraudRead the Press Release
DES MOINES, IA – – On October 19, 2016, Richard Lee Hauser, M.D., 66, of North Liberty, Iowa, appeared before the Honorable Stephanie M. Rose, and pleaded guilty to two counts of health care fraud, announced United States Attorney Kevin E. VanderSchel.
According to the plea agreement, from about October 2008 until about August 2013, Dr. Hauser, a psychiatrist licensed to practice in Iowa, oversaw and personally provided services at a clinic in Grinnell, Iowa. The clinic operated under the name Prevention Systems, Inc. and did business as The Hauser Clinic. Beginning by at least November 8, 2011, and continuing to at least on or about December 31, 2012, Dr. Hauser devised, participated in and intended to devise a scheme to obtain, by means of materially false and fraudulent representations, money and property owned by and under the custody and control of the State of Iowa Medicaid program and Wellmark Blue Cross and Blue Shield of Iowa, in connection with the delivery of and payment for health care benefits and services. As part of this scheme, Dr. Hauser would "up code"—that is, submit and cause to be submitted claims to both Iowa Medicaid and Wellmark misrepresenting the service Hauser provided to certain patients by "coding" for a more expensive service, which was not, in fact, performed, for the purpose of increasing the amount of reimbursement The Hauser Clinic would receive from Iowa Medicaid and Wellmark.
Dr. Hauser is scheduled to be sentenced before The Honorable Stephanie M. Rose, United States District Court Judge, on February 16, 2017, at 10:00 a.m., at the Federal Courthouse in Des Moines. Health care fraud is a felony offense that is punishable by a maximum of ten years of imprisonment and a maximum $250,000 fine.
This matter was investigated by the State of Iowa Medicaid Fraud Control Unit and the United States Postal Inspection Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Elkhart Woman Sentenced to Prison for Mail Fraud Scheme Involving over $1.6 Million in LossRead the Press Release
DES MOINES, IA – On October 6, 2016, Andrea G. Baker, 50, of Eklhart, Iowa, appeared before the Honorable Rebecca Goodgame Ebinger and was sentenced to 27 months of imprisonment for mail fraud, announced United States Attorney Kevin E. VanderSchel. Baker was also ordered to serve three years of supervised release following her term of imprisonment and was ordered to pay $1,656,583.11 in restitution.
Baker pled guilty to one count of mail fraud on June 2, 2016. From around July 2000 until August 2014, Baker served as treasurer for the Ames Chi Omega Alumnae Association ("Chi Omega"). Over the course of fourteen years, she utilized her position as treasurer to engage in a scheme to use funds from Chi Omega for her personal benefit. This included mailing checks from Chi Omega’s account to pay for personal credit card expenses, depositing Chi Omega funds into personal bank accounts, and obtaining United States currency from Chi Omega’s account for her personal use. To conceal her misconduct, Baker made materially false entries and material omissions in Chi Omega’s financial records. Over the course of the fourteen-year period, Baker fraudulently received $1,656,583.11 in funds from Chi Omega.
This matter was investigated by the Federal Bureau of Investigation, with the cooperation of the Ames Chi Omega Alumnae Association. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chinese National Sentenced to Prison for Conspiracy to Steal Trade SecretsRead the Press Release
DES MOINES, IA – On October 5, 2016, Mo Hailong, also known as Robert Mo, 46, appeared before the Honorable Stephanie M. Rose and was sentenced to 36 months imprisonment for conspiracy to steal trade secrets, announced Assistant Attorney General for National Security John P. Carlin and United States Attorney Kevin E. VanderSchel. Mo Hailong was also ordered to serve three years of supervised release following his term of imprisonment and was ordered to pay restitution in an amount to be determined at a later date. In addition, the Court ordered the forfeiture of two farms, in Iowa and Illinois, that were purchased and utilized by Mo Hailong and others during the course of the conspiracy.
During the course of the conspiracy, Mo Hailong was employed as the Director of International Business of the Beijing Dabeinong Technology Group Company, commonly referred to as DBN. DBN is a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed. Mo Hailong is a Chinese national who became a lawful permanent resident of the United States.
According to the plea agreement entered on January 27, 2016, Mo Hailong admitted to participating in a long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto. Mo Hailong participated in the theft of inbred corn seeds from fields in the Southern District of Iowa and elsewhere for the purpose of transporting the seeds to DBN in China. The stolen inbred, or parent, seeds were the valuable trade secrets of DuPont Pioneer and Monsanto.
The investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the Federal Bureau of Investigation. DuPont Pioneer and Monsanto were fully cooperative throughout the investigation.
"Mo Hailong stole valuable proprietary information in the form of seed corn from DuPont Pioneer and Monsanto in an effort to transport such trade secrets to China. Theft of trade secrets is a serious federal crime, as it harms victim companies that have invested millions of dollars and years of work toward the development of propriety technology. The theft of agricultural trade secrets, and other intellectual property, poses a grave threat to our national economic security," said United States Attorney Kevin E. VanderSchel. "The Justice Department and federal law enforcement partners are committed to prosecuting those who in engage in conduct such as Mo Hailong."
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa and the National Security Division’s Counterintelligence and Export Control Section, with assistance from the Department’s Computer Crimes and Intellectual Property Section.
Chinese National Sentenced to Prison for Conspiracy to Steal Trade SecretsRead the Press Release
Mo Hailong, a/k/a Robert Mo, 46, a Chinese national, was sentenced to 36 months in prison for conspiracy to steal trade secrets. Mo Hailong was also ordered to serve three years of supervised release following his term of imprisonment and was ordered to pay restitution in an amount to be determined at a later date. In addition, the Court ordered the forfeiture of two farms in Iowa and Illinois that were purchased and utilized by Mo Hailong and others during the course of the conspiracy. Mo Hailong is a Chinese national who became a lawful permanent resident of the United States.
The announcement was made by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Kevin E. VanderSchel. The sentence was issued by U.S. District Judge Stephanie M. Rose.
During the course of the conspiracy, Mo Hailong was employed as the Director of International Business of the Beijing Dabeinong Technology Group Company, commonly referred to as DBN. DBN is a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed.
According to the plea agreement entered on January 27, Mo Hailong admitted to participating in a long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto. Mo Hailong participated in the theft of inbred corn seeds from fields in the Southern District of Iowa and elsewhere for the purpose of transporting the seeds to DBN in China. The stolen inbred, or parent, seeds were the valuable trade secrets of DuPont Pioneer and Monsanto.
The investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the FBI. DuPont Pioneer and Monsanto were fully cooperative throughout the investigation.
“Mo Hailong stole valuable proprietary information in the form of seed corn from DuPont Pioneer and Monsanto in an effort to transport such trade secrets to China. Theft of trade secrets is a serious federal crime, as it harms victim companies that have invested millions of dollars and years of work toward the development of propriety technology. The theft of agricultural trade secrets, and other intellectual property, poses a grave threat to our national economic security,” said U.S. Attorney Kevin E. VanderSchel. “The Justice Department and federal law enforcement partners are committed to prosecuting those who in engage in conduct such as Mo Hailong.”
This matter was investigated by the FBI. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa and the National Security Division’s Counterintelligence and Export Control Section, with assistance from the Computer Crime and Intellectual Property Section.
Pottawattamie County Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Council Bluffs, IA- United States Attorney for the Southern District of Iowa, Kevin E. VanderSchel, announced on September 23, 2016, Omar Rosales-Ixta, a 39 year-old resident of Carter Lake, Iowa, was sentenced by United States District Court Senior Judge James E. Gritzner to 168 months in prison for conspiracy to distribute methamphetamine. Rosales-Ixta’s term of imprisonment is to be followed by five years of supervised release. Rosales-Ixta entered a guilty plea to conspiracy to distribute methamphetamine on May 26, 2016.
Rosales-Ixta’s co-defendant, Michael Leroy Poore, a 34 year-old resident of Logan, Iowa, was sentenced by Senior Judge James E. Gritzner to 78 months in prison for conspiracy to distribute methamphetamine to be followed by four years of supervised release. Poore entered a guilty plea to the charge on April 29, 2016.
The pleas of guilty and sentencings were the result of an investigation into methamphetamine distribution by the defendants between July and November of 2015. During that time, the defendants distributed over two kilograms of methamphetamine, which was obtained in Omaha and transported to Pottawattamie County where it was sold.
Co-defendant Broc Todd Waltermeyer is scheduled for sentencing on November 2, 2016.
The investigation was conducted by the Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Omaha Police Department, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Legislative Clerk Sentenced for White Powder Hoax on Floor of Iowa LegislatureRead the Press Release
DES MOINES, IA – On September 19, 2016, Michael Dekota McRae, 28, was sentenced by Chief United States District Court Judge John A. Jarvey to eighteen (18) months imprisonment for conveying false information concerning a biological weapon, announced United States Attorney Kevin E. VanderSchel. McRae was also ordered to pay restitution in the amount of $2,747.50 and a $100.00 special assessment to the Crime Victims’ Fund.
McRae, a former legislative clerk to Iowa State Representative Ako Abdul-Samad, admitted to writing a threatening letter addressed to Representative Abdul-Samad. The letter contained racial slurs and threats to kill both McRae and Representative Abdul-Samad. McRae subsequently inserted the letter, along with a white powdery substance, into an envelope which he placed into a legislative mail receptacle.
On April 3, 2012, McRae opened the threatening letter on the chamber floor during an active session of the Iowa Legislature. When McRae opened the letter the white powder, which McRae included to simulate a biological agent or toxin, was released and came into contact with McRae and Representative Abdul-Samad. McRae admitted to perpetrating the hoax to create fear in others.
When McRae committed the crime, legislation proposing to expand existing Iowa law allowing individuals to defend themselves in their home, business or place of employment, commonly referred to as "stand your ground," was pending before the Iowa Legislature. In the days leading up to the hoax, McRae and others participated in a rally on the steps of the Capitol to protest the proposed legislation, and that rally was mentioned in the threatening letter written by McRae.
This matter was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Iowa State Patrol, the Des Moines Police Department, Des Moines Fire Department Hazardous Materials Team, and the Iowa National Guard 71st Civil Support Team. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Prison for Felon in Possession of Stolen Firearms ChargeRead the Press Release
DAVENPORT, IA – On September 15, 2016, Xavier Elfonsto Buckner, 27, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 96 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Buckner was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Buckner was found guilty of felon in possession of a firearm after a three day jury trial ending on May 11, 2016.
At trial, evidence was presented that on August 3, 2015, there was a shooting in the 700 block of West 14th Street, Davenport, Iowa. Witnesses identified Buckner as the shooter. Officers collected spent casings from the scene and a warrant was issued for Buckner’s arrest. On August 11, 2015, officers in the area of 700 West 14th Street saw Buckner in the passenger seat of a vehicle and attempted to stop the vehicle. The vehicle fled from officers, exceeding the speed limit by 25 miles per hour in residential neighborhoods and disobeying many traffic devices. The chase ended when multiple police cars blocked in the vehicle. A stolen, loaded .380 caliber handgun was found on the back passenger floorboard and identified as belonging to Buckner.
A DCI criminalist compared the four casings collected from the scene on August 3, 2015, to the weapon found in the vehicle on August 11, 2015, and concluded that the casings were fired from that weapon.
Buckner has prior felony convictions for reckless use of a firearm in 2006 and third degree burglary in 2008.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Van Wert Man Sentenced to 120 Years in Prison for Production of Child PornographyRead the Press Release
DES MOINES, IA – On September 8, 2016, Timothy Ryan Zollman, 31, of Van Wert, Iowa, was sentenced by Senior United States District Court Judge Robert W. Pratt to 120 years in federal prison, followed by a lifetime of supervised release, for committing two counts of production of child pornography, announced United States Attorney Kevin E. VanderSchel.
According to evidence presented at sentencing, Zollman sexually assaulted and exploited ten prepubescent girls and video recorded the assaults. Zollman’s sentence was enhanced because he committed these crimes while he was listed on the Iowa Sex Offender Registry for a prior conviction.
"The evidence in this case showed Timothy Zollman is a dangerous predator," said United States Attorney Kevin E. VanderSchel. "He was brought to justice because one of his victims, a young girl, was brave enough to report his criminal actions. The significant term of incarceration Zollman will serve is appropriate and necessary to protect the public and other potential victims."
This matter was investigated by the Federal Bureau of Investigation, United States Department of Homeland Security – Homeland Security Investigations, United States Marshals Service, Iowa Division of Criminal Investigation Internet Crimes Against Children Task Force, Decatur County Sheriff’s Department, Decatur County Attorney’s Office, Ringgold County Sheriff’s Department, Creston Police Department, Polk County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and the South Dakota Department of Criminal Investigation.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s "Project Safe Child" initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Solon Couple Sentenced to Probation for False Statements to Social Security AdministrationRead the Press Release
DAVENPORT, IA – On August 30, 2016, Donna and Randall Hanson of Solon, Iowa, were sentenced by Chief United States District Court Judge John A. Jarvey to four (4) years of probation for false statements made to the Social Security Administration, announced United States Attorney Kevin E. VanderSchel. Restitution will be determined and ordered at a later date.
On May 26, 2016, Donna and Randall Hanson pleaded guilty to making false statements. Donna Hanson pleaded guilty to an additional count of failure to disclose information to the Social Security Administration. According to the plea agreement, Donna received Social Security Disability Income benefits since January 2000. In 2005, 2010, and on April 4, 2014, when Social Security Administration did a review of her benefits, Donna reported she was not married to Randall. Randall also submitted a signed statement on April 4, 2014, indicating he was not married to Donna. However, Donna and Randall told the Veterans Administration (VA) in 2003 they were married, which impacted the amount of benefits Randall received. On August 13, 2004, the VA issued a ruling that determined Randall and Donna had been married since October 1999. Because of the false statements to Social Security Administration, Donna was overpaid by $24,695.95.
This matter was investigated by the Social Security Administration, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Iowa City Men Sentenced for Heroin Distribution ConspiracyRead the Press Release
DAVENPORT, IA – On August 29, 2016, Alfred Latrell Jackson, 26, Jason Rahaman Dawson, 45, and Curtis Lee Kemp, 49, all of Iowa City, Iowa, were sentenced by United States District Court Judge Stephanie M. Rose for their role in a heroin distribution ring in Iowa City, announced United States Attorney Kevin E. VanderSchel.
Dawson’s sentence follows his February 24, 2016, guilty plea to conspiracy to distribute 100 grams or more of heroin. Dawson was sentenced to 144 months in prison and ordered to serve four (4) years of supervised release following his prison term.
Kemp and Jackson’s sentences follow April 12, 2016, jury verdicts that found Jackson guilty of conspiracy to distribute at least 100 grams of heroin, and Kemp guilty of conspiracy to distribute heroin and three counts of distribution of heroin. Jackson was sentenced to 188 months in prison and ordered to serve four (4) years of supervised release following his prison term. Kemp was sentenced to 84 months in prison and three (3) years of supervised release to follow his prison terms.
According to Dawson’s plea agreement and trial testimony, from December 2013 to approximately May 7, 2015, Alfred Jackson gave Jason Dawson large sums of heroin to sell in the Iowa City area. Dawson then gave most of the proceeds back to Jackson, owing Jackson up to $14,000 at a time. Dawson had approximately twenty heroin customers and used others to distribute heroin on his behalf, including Curtis Kemp. Between February 2015 and May 2015, both Kemp and Dawson sold heroin to an undercover officer on three separate occasions. This drug conspiracy involved more than 3,300 grams of heroin.
This matter was investigated by the Johnson County Drug Task Force, Iowa Division of Narcotics Enforcement, Muscatine County Drug Task Force, Drug Enforcement Administration and Iowa City Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Muscatine Man Sentenced to Prison for Felon in Possession of Stolen Firearms ChargeRead the Press Release
DAVENPORT, IA – On August 29, 2016, Adam Randal Shouse, 31, of Muscatine, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 72 months in prison for felon in possession of a firearm and possession of a stolen firearm, announced United States Attorney Kevin E. VanderSchel. Shouse was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Shouse pleaded guilty to felon in possession of a firearm and possession of a stolen firearm on October 27, 2015. According to the plea agreement, on February 23, 2015, officers were notified of a burglary in Bennett, Cedar County, Iowa, where a safe containing approximately fifteen firearms was stolen. The safe was taken to a residence in Moscow, Iowa, where it was cut open and the guns were divided among the participants, including Shouse.
On March 3, 2015, officers conducted a search warrant at Shouse’s residence located in Muscatine, Iowa. Officers located five stolen firearms in the residence. Shouse has a felony conviction for Possession with Intent to Deliver in 2003.
This matter was investigated by the Muscatine Police Department, Muscatine County Sheriff’s Department, Muscatine Drug Task Force, Wilton Police Department, Cedar County Sheriff’s Department, Division of Narcotics Enforcement, Scott County Sheriff’s Department, Whiteside County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Indiana Man Sentenced to Prison for Felon in Possession of Stolen Firearms Charges and Absconding to CubaRead the Press Release
DAVENPORT, IA – On August 29, 2016, Shawn Michael Wegmann, 39, of Indiana, was sentenced by United States District Court Judge Stephanie M. Rose to 150 months in prison for felon in possession of a firearm, possession of a stolen firearm, and failure to appear, announced United States Attorney Kevin E. VanderSchel. Wegmann was ordered to serve three years of supervised release following his prison term, to pay $300 towards the Crime Victims’ Fund, and to pay victim restitution of $2,811.00.
Wegmann pleaded guilty on March 11, 2016, to three counts of felon in possession of a firearm, one count of possession of a stolen firearm, and failure to appear. According to the plea agreement, Wegmann was involved in three burglaries where numerous guns and other valuable property were taken. Specifically, around January 2015, Wegmann burglarized a house in Long Grove, Iowa, wherein approximately twelve guns were stolen along with a bass boat. Wegmann sold five of the stolen firearms from this burglary to a retailer in Davenport, Iowa, receiving payment for those firearms, and sold another gun to an acquaintance in Muscatine, Iowa.
Then on February 17, 2015, Wegmann burglarized a residence in Morrison, Illinois, and took approximately eleven firearms. Wegmann sold several of the stolen firearms to a person in Muscatine County. And then on February 23, 2015, Wegmann burglarized a residence in Bennett, Iowa, and took a large safe containing approximately fifteen guns. Wegmann and others pried open the safe and the guns were distributed among the participants. Wegmann then helped push the safe into a river to avoid detection.
Prior to November 2014, Wegmann was convicted of at least two felony convictions, which include: Burglary in the Third degree in 1996 (Clinton County, Iowa) and Operating While Intoxicated in 2013 (Clinton County, Indiana).
On July 21, 2015, Wegmann was indicted on three counts for felon in possession of a firearm (Counts 1, 3, 5) and three counts of possession of a stolen firearm (Counts 2, 4, 6). On August 26, 2015, Wegmann was released from the custody of the United States Marshal Service (USMS) with conditions that included GPS monitoring and allowed Wegmann to reside in Kirklin, Indiana.
On October 26, 2015, Wegmann was scheduled to plead to the charges. On October 23, 2015, tamper alerts came in regarding Wegmann’s GPS ankle monitoring device. The GPS device was found cut, taped and zip-tied to the undercarriage of a van in Lafayette, Indiana. A warrant was obtained for Wegmann for a violation of Pre-Trial Release. On October 31, 2015, Wegmann was apprehended in Cuba and detained by Cuban customs officials. On December 8, 2015, Wegmann was expelled from Cuba, arrested by the USMS, and sent back to the SDIA.
This matter was investigated by the Muscatine Police Department, Muscatine County Sheriff’s Department, Muscatine Drug Task Force, Wilton Police Department, Cedar County Sheriff’s Department, Division of Narcotics Enforcement, Scott County Sheriff’s Department, Whiteside County Sheriff’s Department, United States Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Honduran Man Sentenced to Prison for Unlawful Entry after DeportationRead the Press Release
DAVENPORT, IA – On August 29, 2016, Franklin Alberto Mendez Alvarado, 31, of Honduras, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison for unlawful entry after deportation, announced United States Attorney Kevin E. VanderSchel. Mendez Alvarado was also ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Mendez Alvarado will be turned over to Homeland Security and deported upon completion of his term of imprisonment.
Mendez Alvarado pleaded guilty to unlawful entry after deportation on May 17, 2016. Mendez Alvarado had previously been deported from the United States to Honduras on December 23, 2014, and re-entered the United States without prior approval.
Previously, on April 4, 2014, Mendez Alvarado pled guilty to Illegal Alien in Possession of a Firearm and Visa Fraud in the Western District of Missouri, and was sentenced on October 16, 2014, to time served and placed on supervised release for three years. Mendez Alvarado was deported to Honduras on December 23, 2014. On August 29, 2016, Mendez Alvarado admitted to violating his prior term of supervised release for returning to the United States and was sentenced to six months imprisonment. This term of imprisonment was ordered to be served consecutively to the 30 months imposed on the above case.
This matter was investigated by Homeland Security Investigations and prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Daveport Man Sentenced as Armed Career CriminalRead the Press Release
DAVENPORT, IA - On August 30, 2016, Eddie Jarell Byas, age 29, of Davenport, Iowa, was sentenced by District Court Judge Stephanie M. Rose to 15 years’ imprisonment after pleading guilty as a felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Byas was also ordered to serve three years of supervised release and pay $100 towards the Crime Victims’ Fund. At sentencing, Byas was eligible for an enhanced sentence based on the district court’s finding he was an Armed Career Criminal as the result of two prior felony convictions for serious drug offenses and one prior conviction for a violent felony.
On September 16, 2015, officers with the Davenport Police Department conducted a search of Byas’ residence on West 14th Street in Davenport. Officers found and seized approximately 34.2 grams of marijuana, two digital scales, and a loaded Smith & Wesson 9mm semiautomatic handgun. Byas pled guilty on January 22, 2016.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, the Bureau of Alcohol, Tobacco and Firearms, and the Davenport Police Department.
Davenport Man Sentenced for Stolen Valor Act ConvictionRead the Press Release
DAVENPORT, IA- On August 30, 2016, Robert Ellsworth Brooks, Jr., age 70, of Davenport, Iowa, was sentenced by District Court Judge Stephanie M. Rose to five years’ probation and a $5,000 fine, announced United States Attorney Kevin E. VanderSchel. Brooks pled guilty under the Stolen Valor Act to purchasing medals without proper authorization. Brooks was also ordered to forfeit the unauthorized medals and pay a $25 special assessment to the Crime Victims’ Fund.
Brooks has served in both the United States Army and the United States Navy. From approximately November 1962 to September 1966, Brooks served in the Navy. From approximately May 1967 until September 1970, Brooks served in the Army. This time in the Army included deployment and service in Vietnam in the helicopter program. From approximately September 1970 until September 1974, he served in the Army Reserve. From approximately September 1974 until January 31, 1986, Brooks served in the Navy and was discharged under "other than honorable conditions." After his discharge from the Army, Brook’s DD-214 dated September 10, 1970, listed the following Awards and Decorations (A & D): National Defense Service Medal, Vietnam Service Medal, Vietnam Campaign Medal, Army Aviator Badge, Parachute Badge, 30/S Service Bars, Distinguished Flying Cross, Bronze Star Medal with 2 Oak Leaf Clusters, Air Medal (14th award with "V" device).
Sometime between 1971-1974, and during his service in the Army Reserves, Brooks engaged in a conversation with others and as a result compiled a list of Awards and Decorations he thought he deserved, but had not validly been awarded. He knowingly provided this list to another and this information was falsely added to his official military file.
After Brooks began his service in the Navy in 1974, through a series of administrative interactions between the Army and Navy, the Navy obtained a copy of Army records, including a Form 66, which had been populated with this falsely added information under the Awards & Decorations. The Navy relied on this form as legitimate and believed Brooks was entitled to the incorrectly listed Awards & Decorations. When Brooks was discharged from the Navy on January 31, 1986, his DD-214 included the false Awards & Decorations. Throughout the years, the only document that was checked when suspicion arose about the earned Awards & Decorations was the fraudulent DD-214.
On January 31, 1986, Brooks was discharged from the Navy. As part of his plea in federal court, Brooks admitted that the DD-214 dated January 31, 1986, included false Awards & Decorations. Most significantly, Brooks’ DD-214 falsely reported that he had received a Silver Star Medal with 2 Oak Leaf Clusters, a Purple Heart with 4 Oak Leaf Clusters, and a Combat Infantry Badge. Brooks also admitted that his records falsely included the following: Distinguished Flying Cross with 3 Oak Leaf Clusters, Bronze Star Medal with 2 Oak Leaf Clusters, Airmen Medal with a 57, an Oak Leaf Cluster and "V," Army Commendation Medal with "V," Navy Good Conduct, Navy Pistol Expert, Republic of Vietnam Cross of Gallantry with star, Armed Forces Reserve Medal, Republic of Vietnam Campaign w/ Bar, Republic of Vietnam Honor 1st Class, Army Reserve Components Achievement Medal, Navy Unit Commendation, Meritorious Unit Commendation, Presidential Unit Citation, (Army) Presidential Unit Citation, (Army) Meritorious Unit Citation, (Army) Valorous Unit Citation, Republic of Vietnam Combat Action Ribbon, Armed Forces Expeditionary Medal, Republic of Vietnam Air Service, Vietnam Air Cross Gallantry w/ Silver Wings, Army Overseas Ribbon, Army Service Ribbon, Army NCO Proficiency Development, Naval Parachutist Badge, Naval Aviator Badge, Navy Aircrew Member Wings, Army Parachutist Badge, Republic of Vietnam Parachutist Badge, and Pathfinder Badge.
Brooks knew he had not been legitimately authorized to receive these Awards and Decorations. Brooks admitted that he knowingly and intentionally purchased unauthorized Awards & Decorations, including, but not limited to a Silver Star with 2 Oak Leaf Clusters, a Purple Heart with 4 Oak Leaf clusters, and a Combat Infantryman Badge.
Brooks has repeatedly and falsely affirmed, in public and private settings, that he was properly entitled to and received the additional Awards & Decorations improperly added to his DD-214. Brooks has failed to correct this erroneous information. On several occasions when others have questioned his service record, Brooks has referred to the 1986 DD-214, knowing that it contained false information. At his sentencing hearing, the district court noted that Brooks’ public claims that he was a prisoner of war (POW) after he and his crew were shot down during the Vietnam War were not credible. The district court also noted that a story published in Chicken Soup for the Veteran’s Soul, based on information provided by Brooks and describing Brooks flying through enemy fire to save a group of Marines, one of which turned out to be a family member, also was apparently not true.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa and the Federal Bureau of Investigation.
Nebraska Resident Sentenced to Ten Years in Prison for Possession of Methamphetamine with Intent to Distribute and Possession of a Firearm by a Convicted FelonRead the Press Release
Council Bluffs, IA - On August 18, 2016, Tyler Jon Cross, a 25 year old resident of Lincoln, Nebraska, was sentenced by United States Senior District Court Judge Robert Pratt, to 120 months in prison for Possession of Methamphetamine with Intent to Distribute and Possession of a Firearm by a Felon announced United States Attorney Kevin E. VanderSchel. Judge Pratt also ordered Johnson to serve a term of 5 years of supervised release upon release from prison, and to pay a $100 special assessment.
The conviction resulted from an investigation conducted by the Iowa State Patrol which began on June 20, 2015 when Iowa State Patrol Troopers attempted to stop two motorcycles that were not displaying registration. A pursuit occurred along Interstate 80, with Cross operating his motorcycle in excess of 100 mph and driving into oncoming traffic. The pursuit ended after Cross left the interstate and traveled along two-lane roads in rural Pottawattamie and Shelby Counties, with Cross eventually losing control of his motorcycle leading to his arrest. In a backpack carried by Cross was discovered over one-half pound of methamphetamine and a loaded nine-millimeter handgun.
The case was investigated by the Iowa State Patrol, Shelby County Sheriff’s Office, Pottawattamie County Sheriff’s Office, and the Iowa Division of Narcotic Enforcement, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Kansas Resident Sentenced to over Five Years in Prison for Transporting a Person with Intent to Engage in ProstitutionRead the Press Release
Council Bluffs, IA - On August 18, 2016, Jason Gregory Johnson, a 22-year old resident of Overland Park, Kansas, was sentenced by United States Senior District Court Judge Robert Pratt, to 63 months in prison for transporting a person with the intent to engage in prostitution announced United States Attorney Kevin E. VanderSchel. Judge Pratt also ordered Johnson to serve a term of 10 years of supervised release upon release from prison, and to pay a $100 special assessment.
The conviction resulted from an investigation that began on January 27, 2016, when the Omaha, Nebraska, Police Department was notified of a minor female being in the Omaha area committing acts of prostitution. On January 28, 2016, Omaha police along with the Federal Bureau of Investigation made contact with the female and learned that she had engaged in acts of prostitution in Kansas, Nebraska and Iowa. Johnson was identified as the person who was providing transportation to the minor between the three states in exchange for a portion of the profits earned by the minor.
The investigation was conducted by the Omaha Police Department, Council Bluffs Police Department and Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Ankeny Man Sentenced for Possession of Child Pornography and Related ChargeRead the Press Release
DES MOINES, IA – On July 27, 2016, Aaron Lawrence Storm, 35, of Ankeny, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to a total of 12 years in federal prison and 15 years of supervised release. Storm had previously pleaded guilty to the offense of possession of child pornography, as well as the offense of attempted kidnapping which was based on threats the defendant made that were directed toward the family of the prosecutor handling his child pornography case.
The child pornography case was investigated by the U.S. Department of Homeland Security and the Ankeny Police Department, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
The attempted kidnapping case was investigated by the United States Marshal’s Service, and was prosecuted by the U.S. Attorney’s Office for the Northern District of Iowa.
Mexico City Man Sentenced to 168 Months in Prison for Consiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On August 3, 2016, Jaime Castillo Gomez, 39, of Mexico City, Mexico, was sentenced by Senior United States District Court Judge James E. Gritzner to 168 months in prison announced United States Attorney Kevin E. VanderSchel. Castillo Gomez was also ordered to a five year term of supervised release, to follow his imprisonment.
On February 26, 2016, Castillo Gomez pled guilty to conspiracy to distribute methamphetamine, which was the result of an investigation by law enforcement of methamphetamine trafficking that occurred in the Omaha-Council Bluffs metro area for over a one-year time period. Beginning at least as early as November of 2014, and continuing through September of 2015, Castillo Gomez conspired with multiple other individuals to distribute at least 1.5 kilograms of methamphetamine in the Southern District of Iowa and elsewhere.
This matter was investigated by the Federal Bureau of Investigation’s Greater Omaha Safe Streets Task Force and the Southwest Iowa Narcotics Enforcement Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Omaha Resident Sentenced to 180 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On July 28, 2016, Steven B. Davis, a 58 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 180 months in prison, and 3 years of supervised release to follow the term of imprisonment, for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel.
On April 13, 2016, a jury in the Southern District of Iowa found Davis guilty of conspiracy to distribute methamphetamine. The charge against Davis was the result of an investigation by law enforcement of methamphetamine trafficking that took place between Omaha, Nebraska, and Audubon County, Iowa. The evidence at trial showed that from as early as June of 2014, continuing through August of 2014, Davis conspired with others to distribute over 500 grams of methamphetamine in the Southern District of Iowa.
The investigation was conducted by the Iowa Department of Public Safety, Division of Narcotics Enforcement, and the Drug Enforcement Administration. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former City of Bettendorf Employee Admits Taking BribesRead the Press Release
DAVENPORT, IA – On July 22, 2016, Robert W. Webster, 66, of Davenport, Iowa, after three days of trial, pleaded guilty before Chief United States District Court Judge John A. Jarvey to three counts of an Indictment charging one count of conspiracy to commit bribery involving governments receiving federal funds in violation of 18 U.S.C. §§ 666(a)(2) & (b) and 371 and two counts of bribery concerning governments receiving federal funds in violation of 18 U.S.C. § 666(a)(1)(B), announced United States Attorney Kevin E. VanderSchel. Webster, the former City Electrician for the City of Bettendorf, Iowa, admitted that from 2004 or earlier, until around July of 2010, he conspired with persons at Brown Traffic Products, Inc. (BTP) of Davenport to accept all-expenses-paid trips including airfare, lodging, meals, drinks, and entertainment intending to be rewarded or influenced in connection with business transactions with the City of Bettendorf.
Webster admitted in March of 2009, he accepted $2,700 from an employee of BTP in the form of a check issued to Webster’s wife and deposited into her credit union account. The March 2009 payment was accepted by Webster with the intent that he rewarded and influenced in connection with business transactions, past and future, between BTP and the City of Bettendorf. He further admitted that in September of 2009, he accepted payment for golf at the Kokopelli golf course in Gilbert, Arizona, from an employee of BTP as a reward or as influence for transactions with the City of Bettendorf.
For the bribery charges, on each of the two counts, Webster faces a potential statutory sentence of up to ten years (10) years in prison, a fine of up to $250,000, and a term of up to two (2) years of supervised release to follow any term of imprisonment. For the conspiracy charge, Webster faces a potential statutory sentence of up to five years (5) years in prison, a fine of up to $250,000, and a term of up to one (1) year of supervised release to follow any term of imprisonment. Sentencing is scheduled before Chief United States District Court Judge John A. Jarvey on December 14, 2016, at 10:00 a.m. at the United States Courthouse in Davenport, Iowa.
Other persons who have pled guilty in this investigation are Robert L. Budd, Jr., Daniel O. Fuchs, and David Schiltz, all former employees of Brown Traffic Products, Inc.
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Quad Cities Mixed Martial Arts Promoter Sentenced to Prison for Filing False Tax ReturnRead the Press Release
DAVENPORT, IA – – On July 13, 2016, Monte A. Cox, 56, of Bettendorf, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to three months in federal prison for filing a false tax return announced United States Attorney Kevin E. VanderSchel. Cox was also ordered to serve one year of supervised release following his prison term, pay $100 to the Crime Victims’ Fund, and to cooperate with the Internal Revenue Service in the determination, assessment, and payment of any tax liability that Cox may have for calendar years 2007 through 2010.
Cox pled guilty on October 5, 2015. According to the plea agreement, Cox knowingly underreported income on his personal tax returns for the years 2007, 2008, 2009, and 2010. During this period Cox resided in Bettendorf, Iowa, and earned income as a Mixed Martial Arts (MMA) fight promoter and fighter manager. He operated his business under the name Ultimate Productions, Inc. For each of these years, Cox knew that he had received income from his MMA-related activities and ownership of Ultimate Productions, Inc. that exceeded the income he reported on his tax returns. Cox underreported his income by an estimated $255,036 for 2007, $295,854 for 2008, $405,778 for 2009, and $152,509 for 2010. As a result, Cox owed the government an additional $370,478 in taxes for 2007-2010 beyond what he claimed in his false returns.
This matter was investigated by the Internal Revenue Service – Criminal Investigation, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Credit Union Employee Admits to Embezzling Nearly $2.5 MillionRead the Press Release
DES MOINES, IA – On July 15, 2016, Linda Lee Clark, 68, of Corydon, Iowa, waived indictment and pleaded guilty to an United States Attorney’s Information to one count of embezzlement by a credit union employee, announced United States Attorney Kevin E. VanderSchel. Clark admitted to embezzling $2,494,809 of funds from the SCICAP Credit Union in Chariton, Iowa, from the time she began working there as a bookkeeper in 1978 until she resigned in August 2015. Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. As a result of Clark’s embezzlement, the Credit Union became insolvent and was forced into liquidation.
Clark faces a potential statutory sentence of up to thirty (30) years in prison, a fine of up to $1,000,000, and a term of up to three (3) years of supervised release to follow any term of imprisonment. As part of the plea agreement, Clark agreed to pay restitution. Sentencing is scheduled for 10:00 a.m. on November 15, 2016, before United States District Court Judge Rebecca Goodgame Ebinger at the United States Courthouse in Des Moines.
Ottumwa Man Sentenced to Twenty-Four Months in Prison and Ordered to Pay $395,968.20 in Restitution for Cattle Fraud SchemeRead the Press Release
DES MOINES, IA – On July 7, 2016, Jeffrey Lewis DeWitt, 28, of Ottumwa, Iowa, was sentenced by United States Senior District Court Judge Robert W. Pratt to 24 months in federal prison for wire fraud and conversion of mortgaged property, announced United States Attorney Kevin E. VanderSchel. DeWitt was ordered to serve three years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $395,968.20 to eleven of his victims.
DeWitt pled guilty to the crimes on December 3, 2015. According to the plea agreement, DeWitt lied to induce a victim to obtain a bank loan, which DeWitt claimed would be used to purchase cattle that would be resold at a higher price, for a guaranteed profit. DeWitt sent the victim an email with details of the cattle he was purportedly purchasing, including the purchase price of the cattle, the resale price, the parties who would repurchase the cattle, and stated the cattle were guaranteed to be resold for a profit within three weeks. Unbeknownst to the victim, the details in the email were fictitious. DeWitt knew the victim needed the fabricated information to justify the loan to the bank, and the bank did lend the victim funds in reliance of DeWitt’s fabricated email. DeWitt used the funds to purchase cattle for himself, but only gave his victim a check that was returned for insufficient funds.
DeWitt also admitted in the plea agreement to selling livestock and hay he had mortgaged to the Farm Service Agency ("FSA") of the United States Department of Agriculture without authorization. He deposited the funds into accounts held by his parents to avoid detection by FSA. He admitted to selling over $200,000 of collateral without authorization.
The plea agreement also detailed a series of additional fraudulent transactions with as many as eleven individual victims. DeWitt admitted to using the proceeds of the unauthorized sales of collateral and the proceeds from the bank loan scheme to fund fraudulent cattle deals. He told other farmers he would purchase cattle, seed, and hay on their behalf, but did not do so, and at times produced false invoices and checks to support his claims.
This matter was investigated by the United States Department of Agriculture and the Federal Bureau of Investigation, with assistance from the Davis and Wapello County Sheriffs’ Offices. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
West Des Moines Man Sentenced to 70 Years in Prison for Retail Theft Scheme, Child Pornography, and Witness Tampering ChargesRead the Press Release
DES MOINES, IA – On June 23, 2016, Bradley J. Prucha, 39, of West Des Moines,
Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to a total of 840
months, or 70 years, in federal prison for executing a multistate retail theft scheme, producing
and possessing child pornography, distributing Xanax to minors, and attempting to bribe minor
witnesses to change their trial testimony, announced United States Attorney Kevin E.
VanderSchel. Prucha was previously convicted by a Southern District of Iowa jury on March 1,
2016, on multiple counts, including conspiracy, mail fraud, production of child pornography,
possession of child pornography, distribution of Xanax to persons under the age of twenty-one,
and witness tampering. Prucha was ordered to serve a lifetime term of supervised release to
follow his release from prison, pay restitution to the business victims, and $1,900 to the Crime
Victims’ Fund.
Over the course of a six day jury trial, the government presented evidence showing
Prucha was the leader of a retail theft scheme from at least October 2013 until his arrest on June
4, 2015. To execute his scheme, Prucha printed UPC bar code stickers, and then placed the
stickers on items in stores so they would ring up at a lower price. He then returned the items to
stores for their full price, or sold them online through eBay, Craigslist, or directly to bulk buyers.
Prucha committed the thefts between Florida and Iowa, where he maintained separate residences,
and in Nebraska and Illinois. At trial, witnesses described how Prucha recruited adults and
teenagers to place stickers on items, purchase them for the fraudulent price, and make the returns
so as to avoid detection himself. At the time Prucha orchestrated and executed his retail bar
coding scam, he was on probation for having committed a nearly identical bar code switching
scheme in Florida. Prucha admitted to committing the bar code fraud scheme during his trial
testimony.
The evidence at trial also established Prucha used teenage girls to commit thefts for him,
and paid the girls to have sex with him using proceeds from the scheme as well as Xanax. One
witness testified she committed thefts for Prucha starting as young as fifteen years old; multiple
witnesses testified Prucha’s nephew also committed thefts for him from an even younger age. At
trial, the minor victims testified that Prucha gave them Xanax and money to have sexual relations
with him. Prucha filmed three sexually explicit videos of himself engaged in sexual activity with
minors. He maintained possession of the videos on his electronic devices and multiple witnesses
testified that Prucha showed them the videos. Testimony and Prucha’s own recorded statements
played at trial, proved he threatened the victims with physical harm when one victim learned
about the video of her (which had been taken without her knowledge) and threatened to tell the
police.
A former inmate at the Polk County Jail testified that Prucha directed him to offer money
to the minor witnesses for them to sign false affidavits, which would have contradicted their
statements and the evidence in the case. Prucha provided the inmate, someone he knew was a
convicted sex offender, with personal details about the minor witnesses, including hand-drawn
maps to the girls’ homes, their telephone numbers, details about their personal lives, names of
family members, and the hours and location of their jobs.
“The evidence in this case showed Bradley Prucha is a dangerous predator who
manipulated vulnerable teenage girls to commit fraud for him and to have sex with him by
providing them Xanax, money and gifts, and through threats, intimidation, and emotional and
mental manipulation,” said United States Attorney Kevin E. VanderSchel. “The significant term
of incarceration Prucha will serve is appropriate and necessary to protect the public and other
potential victims.”
At sentencing, Chief United States District Judge John A. Jarvey imposed a total sentence
of 840 months. Prucha received the maximum term of imprisonment of five years as to the
conspiracy count, 20 years as to six mail fraud counts, 20 years for possession of child
pornography, and 10 years for the distribution of Xanax to persons under the age of twenty-one.
He additionally was sentenced to 40 years imprisonment on each count of production of child
pornography, a consecutive thirty years for committing those offenses while required to register
as a sex offender, and 30 years for each of the four counts of witness tampering.
This matter was investigated by the Federal Bureau of Investigation, with assistance from
the Asset Protections teams at various retailers, including Barnes & Noble, Walmart, Toys R Us,
and Best Buy. The case was prosecuted by the United States Attorney’s Office for the Southern
District of Iowa.
Indiana Man Sentenced to Life Imprisonment for Muscatine Bank RobberyRead the Press Release
DAVENPORT, IA- On June 16, 2016, Thomas Alexander Davis III, age 40, of Indiana, was sentenced by Chief United States District Court Judge John A. Jarvey to life imprisonment for bank robbery announced United States Attorney Kevin E. VanderSchel. A jury found Davis guilty of this offense on February 11, 2016. Davis had been previously convicted in 1995 of armed bank robbery in the Southern District of Indiana, and robbery with a deadly weapon in Hancock, Indiana. At sentencing the government presented evidence, including certified records and testimony from a FBI Special Agent, an Indiana Deputy U.S. Marshal, a FBI-Biometrics Division Certified Ten Print Examiner, and the Chief of Police from Greenfield, Indiana, to identify Davis as the same person who committed these prior two offenses. Because these two prior robbery convictions qualified as "serious violent felonies" under a federal sentencing statute, this third conviction for robbery of the US Bank mandated life imprisonment. Davis was also ordered to serve five years on supervised release, pay restitution, and a $100 special assessment to the Crime Victims Fund.
The evidence at trial in this case showed that on November 28, 2012, Davis entered the US Bank in Muscatine. Davis presented the teller with a black bag with an Angry Birds cartoon, demanded money, and displayed a handgun. A bank customer was also present at the teller counter during the robbery. The teller placed US Bank cash in the bag. Davis fled the bank and escaped in a black Cadillac driven by Stacey Fincher, also of Indiana. Davis and Fincher drove back to Indiana. Davis was arrested on February 12, 2015, in Indiana. On April 8, 2016, Stacey Fincher was sentenced to a deferred judgment in Muscatine County District Court after pleading guilty to conspiracy to commit a forcible felony.
This case was investigated by the Federal Bureau of Investigation and the Muscatine Police Department, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Federal Court Sentences Davenport Man for Possessing Child PornographyRead the Press Release
DAVENPORT, IA- On June 15, 2016, Philipp Johnson, age 40, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 120 months imprisonment on the charge of possession of child pornography, announced United States Attorney Kevin VanderSchel. Johnson was also ordered to serve 10 years of supervised release following his prison term, pay $100 towards the Crime Victims Fund, and pay $3,000.00 to each of the two identified victims. Forfeiture of the electronic device used to possess the child pornography was also ordered.
Johnson pled guilty to this crime on January 25, 2016. On December 1, 2014, the Davenport, Iowa Police Department was notified that Johnson’s cellular phone contained suspected child pornography. A forensic examination showed that the phone was activated on October 24, 2014, and last accessed November 20, 2014. The examination revealed that the user was actively browsing the internet for pornographic websites. The examiner found 496 images containing child pornography, some of which showed children under the age of twelve years old and a minor engaged in bestiality. Upon searching the Iowa Sex Offender Registry, it was confirmed that Johnson is a registered sex offender with the State of Iowa, for a prior conviction of Sexual Abuse 3rd (Iowa Code 709.4) on August 4, 2000. His victim was a female between the ages of 0-13.
This matter was investigated by the Davenport Police Department and the National Center for Missing and Exploited Children. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Former Davenport Tax Preparer Sentenced to Thirty-Three Months in Prison and Ordered to Pay $115,841.84 in RestitutionRead the Press Release
DAVENPORT, IA – On June 8, 2016, Gregory Scott Alcala, 44, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 33 months in federal prison for each count of preparing and presenting a false tax return, wire fraud, and making a bomb threat in and affecting interstate commerce, announced Acting United States Attorney Kevin E. VanderSchel. The sentences were ordered to be served concurrently, that is, at the same time. Alcala was ordered to serve three years of supervised release following his prison term, pay $300 to the Crime Victims’ Fund, and pay a total of $115,841.84 in restitution to 71 of his victims.
Alcala pled guilty to the crimes on February 24, 2016. According to the plea agreement, in about February 2010, Alcala began operating Alcala Tax Service in Davenport and prepared and filed federal tax returns on behalf of taxpayers. Beginning by at least February 18, 2012, and continuing to at least March 14, 2014, Alcala devised a scheme to defraud by filing altered tax returns. Specifically, Alcala prepared tax returns on behalf of taxpayers, provided a copy of the prepared return to the taxpayers, and then represented to the taxpayers that Alcala had filed that return with the Internal Revenue Service on the taxpayer’s behalf. In reality, Alcala did not file that version but instead—without the knowledge of and authority from the taxpayer—materially altered the taxpayer’s return to create a larger tax refund than the one reflected in the copy of the return Alcala had provided to the taxpayer. Alcala then filed the unauthorized version of the taxpayer’s return and—without the knowledge of and authority from the taxpayer—directed the additional refund amount to Alcala’s own bank account. During tax years 2009 through 2014, Alcala prepared at least 164 tax returns that included false or fraudulent information and directed at least a portion of 159 of those tax refunds to his own bank account without the knowledge of or authority from the taxpayer.
Additionally, on December 26, 2013, a switchboard operator for Badger Mutual Insurance, in Milwaukee, Wisconsin, received a telephone call from Alcala in Davenport. During the call, Alcala threatened the operator by stating he was going to send her a bomb. Alcala knew his communication to the operator would be viewed as threatening.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Prison for Felon in Possesion of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On June 2, 2016, Ali Suarez, 21, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 60 months in prison, following Suarez’s guilty plea on March 2, 2016, to a felon in possession of a firearm charge announced Acting United States Attorney Kevin E. VanderSchel. Suarez was ordered to serve three years of supervised release after his prison term and to pay $100 to the Crime Victim’s Fund.
On October 15, 2015, Davenport police officers were dispatched to a gun shots fired complaint. Officers searched the area and recovered a Hi-Point .45 caliber semiautomatic handgun. The investigation revealed Suarez and his fellow gang members were feuding with a rival gang. During the altercation, Suarez fired the handgun recovered by the police.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Pottawattamie County Man Sentenced to Prison for Firearms OffensesRead the Press Release
COUNCIL BLUFFS, IA – On June 1, 2016, Nicholas M. Malone, 27, of Pottawattamie County, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months in prison, followed by three years of supervised release, for felon in possession of a firearms and possession of stolen firearms charges, announced Acting United States Attorney Kevin E. VanderSchel.
Malone entered his guilty pleas on February 23, 2016, to illegally possessing stolen firearms, based on his arrest on June 5, 2015, by the Council Bluffs Police Department. At the time of his arrest, Malone was operating a stolen pick-up truck and was found to be in possession of methamphetamine, drug paraphernalia, a loaded .40 caliber hand-gun, a Tikka .204 Rifle, and assorted ammunition. The firearms and ammunition had been reported stolen from Oakland, Iowa prior to Malone’s arrest.
This matter was investigated by the Council Bluffs Police Department, with support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Treasurer Admits Guilt in Scheme to Defraud Sorority Alumnae AssociationRead the Press Release
DES MOINES, IA - On June 2, 2016, Andrea G. Baker waived indictment and pleaded guilty to one count of mail fraud announced Acting United States Attorney Kevin E. VanderSchel. Baker, age 50, admitted to engaging in a scheme to defraud the Ames Chi Omega Alumnae Association in Ames, Iowa ("Association"), from approximately July 2000 until August 2014. Baker admitted she used her position as treasurer to obtain Association funds for her own benefit. As part of the scheme, Baker mailed checks from the Association’s account to pay for personal credit card statements. Baker also deposited Association funds into a personal bank account, and obtained cash from the Association for her personal use. Baker acted without the Association’s permission or knowledge, and made false entries and omissions in the Association’s financial records to conceal her use of funds. Baker admitted she received and attempted to receive a total of at least $954,410 from the Association from 2000 to 2014.
Baker faces a statutory sentence of up to twenty (20) years in prison, a fine of up to $250,000, and a term of up to three (3) years of supervised release to follow any term of imprisonment. As part of the plea agreement, Baker agreed to pay restitution in an amount to be determined by the court at sentencing. Sentencing is scheduled for 9:00 a.m. on October 6, 2016, before United States District Court Judge Rebecca Goodgame Ebinger, at the United States Courthouse in Des Moines.
Former City Clerk Pleads Guilty to Federal Fraud and Arson ChargesRead the Press Release
DES MOINES, IA - On May 24, 2016, Dorothy L. Dillinger pled guilty to one count of mail fraud and one count of malicious use of fire announced Acting United States Attorney Kevin E. VanderSchel. Dillinger, age 61, admitted to engaging in a scheme to defraud the City of Casey, Iowa, from around 2009 until August 2014, while serving as the City Clerk. As part of that scheme, Dillinger admitted that she used the City’s credit card and funds to purchase items for personal use without the knowledge or approval of the City Council. Dillinger used the United States Postal Service to mail City checks to pay the resulting credit card statements. Dillinger also admitted to making unauthorized payments to herself for personal expenses without City Council approval or knowledge. Dillinger failed to disclose these expenditures to both the City Council, as well as in minutes from City Council meetings. Dillinger also admitted to maliciously destroying the City of Casey Community Building, which was used in activities affecting interstate commerce, by means of fire. The city building was destroyed by fire from the late night of August 19th into the morning of August 20th in 2014.
Dillinger faces a statutory sentence of at least five (5) years and up to twenty (20) years in prison, as well as financial penalties and a term of supervised release. As part of the plea agreement, Dillinger agreed to pay restitution in an amount to be determined by the court at sentencing. Sentencing is scheduled for at 10:30 a.m. on September 26, 2016, before the Honorable James E. Gritzner, Senior United States District Court Judge, at the United States Courthouse in Des Moines.
Davenport Man Sentenced in Federal Court for Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On May 23, 2016, Jonathan Earl Moore, 29, of Davenport, Iowa, was sentenced to 36 months imprisonment by District Court Judge Stephanie M. Rose, after pleading guilty to a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Moore was ordered to serve three years on supervised release and pay $100 to the Crime Victims’ Fund. On July 5, 2015, Davenport Police Department officers found Moore in possession of a Talon 9mm handgun. Moore pled guilty on January 15, 2016.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Former President of People’s Savings Bank of Crawfordsville, Iowa, Enters Guilty Pleas for Embezzlement and Obstructing a Bank ExaminationRead the Press Release
DAVENPORT, IA – On May 9, 2016, Russell Edwin Wagler, 52, of Wayland, Iowa, waived his right to be indicted by the federal grand jury and entered pleas of guilty to an Information charging him with one count of misapplication and embezzlement of bank funds by a bank officer in violation of 18 U.S.C. § 656 (Count 1) and one count of obstruction of a bank examination in violation of 18 U.S.C. § 1517 (Count 2). The proceeding was held before United States Magistrate Judge Stephen B. Jackson, Jr.. The criminal case is assigned to United States District Court Judge Stephanie M. Rose. Sentencing is scheduled for September 19, 2016.
According to documents filed in United States District Court, from approximately December 2002 and until March 2013, Wagler originated numerous straw loans involving existing customers at the bank and took the proceeds of those loans. As a result, Wagler misapplied bank funds and the bank suffered losses of approximately $425,977.00. In addition, from approximately January 2008 and until October 2013, Wagler unlawfully obtained multiple unauthorized bonuses and unauthorized increased salaries. As a result of these unauthorized disbursements received by Wagler, the bank suffered losses of $200,964.00 bringing the total bank loss to $626,941.00 as related to Wagler’s activities.
The case was investigated by the Office of Inspector General for the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation.
Des Moines Man Sentenced for Distributing Methamphetamine and Possessing FirearmsRead the Press Release
DES MOINES, IA – On May 10, 2016, Kevin Villalobos Guardado, of Des Moines, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 293 months in prison for conspiracy to distribute at least 50 grams of actual methamphetamine, 24 months in prison for illegal reentry into the United States, and 120 months in prison on two counts of being an illegal alien in possession of firearms, announced Acting United States Attorney Kevin E. VanderSchel. All sentences were ordered to run concurrently. Villalobos was ordered to serve five years of supervised release following his prison term and to pay $400 towards the Crime Victims’ Fund.
Villalobos was arrested as part of a coordinated law enforcement effort in August 2015, which targeted a large-scale drug trafficking organization and included the execution of numerous search and arrest warrants. According to the plea agreement, from April to August 2015, Villalobos sold methamphetamine and firearms to confidential informants and undercover agents. Villalobos is a citizen of El Salvador, who was illegally present in the United States following a prior removal or deportation.
This matter was investigated by the Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.