District of Kansas
Press releases recorded for this federal judicial district.
Drug Courier Sentenced After Arrest in Kansas with 117 Pounds of CocaineRead the Press Release
WICHITA, KAN. - A drug courier from California who was stopped on the highway with 117 pounds of cocaine was sentenced Monday to three years in federal prison, U.S. Attorney Tom Beall said.
Marco Antonio Aispuro, 48, pleaded guilty to one count of possession with intent to distribute cocaine. He was arrested Oct. 21, 2016, after the Kansas Highway Patrol stopped him on eastbound I-70 in Wabaunsee County. A search of his vehicle turned up 117 pounds of cocaine hidden in a rear quarter panel and a spare tire.
Beall commended the Drug Enforcement Administration, the Kansas Highway Patrol and Special Assistant U.S. Attorney Skip Jacobs for their work on the case.
Medical Imaging Provider Sentenced for Health Care FraudRead the Press Release
TOPEKA, KAN. - A man who owned a medical imaging business was sentenced Thursday to 18 months in federal prison followed by six months home detention for health care fraud, U.S. Attorney Tom Beall said today. He was ordered to pay more than $1.5 million in restitution.
Cody Lee West, 39, Paragould, Ark., owner of C & S Imaging, Inc., pleaded guilty to one count of health care fraud. C & S Imaging was a mobile independent diagnostic testing facility that provided ultra sound diagnostic testing to health care providers.
West solicited chiropractors and told them he could provide equipment and an operator at no cost to them. West fraudulently billed Medicare for musculoskeletal exams and Doppler scans that allowed him to receive up to $410 per patient for services that were not ordered by a physician, not medically necessary, not performed or not documented. He also used fraudulent methods to attempt to provide documentation for some of his bills.
Beall commended the Department of Health and Human Services, the Kansas Attorney General’s Medicaid Fraud Division and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Mail Carrier Pleads Guilty to Stealing Gift Cards from MailRead the Press Release
WICHITA, KAN. - A former mail carrier in Sheridan County pleaded guilty Friday to stealing mail he was supposed to deliver, U.S. Attorney Tom Beall said.
James N. Stephenson, 25, Hoxie, Kan., pleaded guilty to one count of mail theft. In his plea, he admitted the crime occurred while he was employed at the Post Office in Hoxie, Kan. He stole mail containing cash, gift cards and prepaid debit cards. He said he looked for birthday and anniversary cards that were likely to contain items of value.
Sentencing is set for Sept. 14. Both parties have agreed to recommend a sentence of a year and a day in federal prison. Beall commended the U.S. Postal Inspection Service - Office of Inspector General and Assistant U.S. Attorney Brent Anderson for their work on the case.
Leawood Woman Charged with Importing Misbranded DrugsRead the Press Release
KANSAS CITY, KAN. - A Leawood woman was charged Friday with importing $194,000 worth of misbranded drugs, U.S. Attorney Tom Beall said.
Kathleen Stegman, 59, who owned Midwest Medical Aesthetics Center, Inc., of Leawood, Kan., was charged with obtaining Botox, Dysport, Restylane, Perlane and Sculptra from foreign sources. The drugs did not meet Food and Drug Administration labeling requirements. The crime is alleged to have occurred in 2011, 2012 and 2013.
In October 2016, Stegman was sentenced to 51 months in federal prison for tax evasion.
If convicted, she faces up to three years in federal prison, a fine up to $250,000 and forfeiture. The Food and Drug Administration’s Office of Criminal Investigation investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
Former Volunteer Firefighter Pleads Guilty to Concealing Cause of Grass FiresRead the Press Release
TOPEKA, KAN. - A former firefighter with the Kickapoo Volunteer Fire Department pleaded guilty Tuesday to concealing the fact that grass fires on the reservation were deliberately set, U.S. Attorney Tom Beall said today.
Arlene M. Negonsott, 35, Horton, Kan., pleaded guilty to one count of concealing a felony. In her plea, she admitted that she did not tell investigators what she knew when they interviewed her about a series of fires on the Kickapoo Reservation in Brown County. She knew that fire chief and co-defendant Stephen D. Ramirez, Jr., arranged for the fires to be set and billed the Bureau of Indian Affairs for the Kickapoo Fire Department’s work putting out the fires.
Sentencing will be set for a later date. She faces up to three years in federal prison and a fine up to $250,000.
Co-defendant Ramirez is awaiting trial. The U.S. Department of Interior – Office of Inspector General, the Kickapoo Tribal Police and the FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Cheyenne County Man Pleads Guilty to Producing Child PornographyRead the Press Release
WICHITA, KAN. – A Cheyenne County man pleaded guilty Wednesday to producing child pornography, U.S. Attorney Tom Beall said.
Brett Nolan Cico, 31, St. Francis, Kan., pleaded guilty as charged to three counts of producing child pornography and three counts of sexual exploitation of a minor while registered as a sex offender. Two of the victims were 14 years old and the other victim was 15 years old.
Sentencing is set for Sept. 11. He faces a penalty of not less than 15 years and not more than 30 years on each production count and 10 years (consecutive) on the other counts. Beall commended the Kansas Bureau of Investigation, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Ottawa Man Charged with Attempted Child Sex TraffickingRead the Press Release
TOPEKA, KAN. - An Ottawa man was charged in federal court here Monday with attempted sex trafficking of a child, U.S. Attorney Tom Beall said.
Michael David Mitchell, 63, Ottawa, Kan., was charged with one count of attempted sex trafficking of a child, six counts of electronic solicitation, one count of attempted coercion and enticement of a minor, and one count of interstate travel for the purpose of having sex with a minor.
A criminal complaint and affidavit alleges Mitchell told undercover investigators he was looking for a mother and children to enslave for sex and he was willing to pay for it. In a text exchange with an undercover investigator posing as a woman with a daughter, he said: “I will take care of you, but it won’t be easy on either of you. I’m a sadist and enjoy inflicting pain. Neither of you will ever be allowed to say no to me.”
Mitchell agreed to a meeting at the Adams Mark Hotel in Kansas City, Mo. He was arrested when he arrived.
If convicted, he faces a penalty of not less than 10 years on the attempted sex trafficking count, up to five years on each electronic enticement count, not less than 10 years on the coercion and enticement count, and up to 30 years on the interstate travel charge. The FBI investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Man Sentenced for Bank Robbery He Blamed on a Fight with His WifeRead the Press Release
KANSAS CITY, KAN. B A Kansas City, Kan., man was sentenced Tuesday to six months home confinement and 50 hours of community service for a bank robbery he blamed on a fight with his wife, U.S. Attorney Tom Beall said.
Lawrence John Ripple, 71, Kansas City, Kan., pleaded guilty to one count of bank robbery. A criminal complaint in the case alleged that on Sept. 2, 2016, Ripple sat down in the lobby and waited for police after robbing the Bank of Labor at 756 Minnesota Ave. in Kansas City, Kan. He told investigators that after an argument with his wife he felt he would rather be in prison than go back home.
Beall commended the FBI and Assistant U.S. Attorney Sheri Catania for their work on the case.
Two Salina Men Sentenced on Federal Drug, Gun ChargesRead the Press Release
TOPEKA, KAN. - Two Salina men were sentenced Monday on federal drug and gun charges, U.S. Attorney Tom Beall said.
Seth Allen George, 26, Salina, Kan., was sentenced to 18 years in federal prison. He pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of brandishing firearms in furtherance of drug trafficking.
Tyler Lee Shea, 21, Salina, Kan., was sentenced to 15 years in federal prison. He pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing firearms in furtherance of drug trafficking.
In their pleas, both men admitted they were members of a drug trafficking organization operating in the Salina area in 2016.
Co-defendants include Kyle Allen Palmer, who was sentenced to 180 months, and Jason Lars Sheets, who is set for sentencing July 10.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Greg Hough for their work on the case.
Topeka Man Pleads Guilty to Two Armed RobberiesRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded guilty in federal court Monday to two armed robberies, including one in which he fired a shot into the ceiling, U.S. Attorney Tom Beall said.
Gary L. Gillom, 30, Topeka, Kan., pleaded guilty two counts of armed robbery. In his plea, he admitted that on June 26, 2016, he brandished a firearm while robbing the Arby’s restaurant at 1187 Southwest Gage in Topeka. He ordered restaurant employees to hurry with the cash and fired a round into the ceiling of the restaurant.
Gillom also admitted that on June 27, 2016, he brandished a firearm when he robbed the Long John Silver’s restaurant at 2746 Southwest Fairlawn in Topeka.
Gillom was arrested on June 29, 2016, after investigators identified a car used in the robberies.
Co-defendant Darien E. Fulton, 25, Topeka, Kan., was sentenced to six years in federal prison.
Gillom is set for sentencing Sept. 11. He faces a maximum penalty of up to 20 years and a fine up to $250,000 on each count.
Beall commended the Topeka Police Department, the Kansas Highway Patrol, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Kansas Man Charged with Hate Crime, Firearm Offenses in Shooting of Three Men at Olathe BarRead the Press Release
WASHINGTON – The Justice Department today announced the indictment of Adam W. Purinton, 52, of Olathe, Kansas. Purinton was indicted by a federal grand jury on hate crime and firearm charges for shooting three men—including two Indian nationals—at an Olathe bar on Feb. 22, 2017.
The announcement was made by Acting Assistant Attorney General Thomas E. Wheeler, II, head of the Justice Department’s Civil Rights Division, and United States Attorney Thomas E. Beall of the District of Kansas.
Today’s indictment accuses Purinton of shooting and killing Srinivas Kuchibhotla because of Kuchibhotla’s actual and perceived race, color, religion and national origin. The indictment also accuses Purinton of attempting to kill Alok Madasani because of his actual and perceived race, color, religion and national origin.
A third count in the indictment charges Purinton with violating a federal firearms statute by discharging a firearm at Kuchibhotla, Madasani, and the third man, Ian Grillot, during those crimes of violence.
The indictment alleges that Purinton committed the offenses after substantial planning and premeditation, attempted to kill more than one person in a single criminal episode, and knowingly created a grave risk of death to others on the scene.
The statute authorizes a maximum penalty of death or life in prison; the Justice Department will determine at a later date whether, in this particular case, it will seek the death penalty.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
Investigating agencies include the FBI and the Olathe Police Department. This case is being prosecuted by Assistant United States Attorneys Tris Hunt and David Zabel of the District of Kansas and Trial Attorney Christopher J. Perras of the Justice Department’s Civil Rights Division.
Olathe Man Pleads Guilty in $8 Million Investment ScamRead the Press Release
KANSAS CITY, KAN. - An Olathe man pleaded guilty Monday to stealing more than $8 million from a Turkish investor, U.S. Attorney Tom Beall said.
Nagy Shehata, 57, Olathe, Kan., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted the crime occurred while he was president of Premier Investment Group, a corporation registered in Missouri. During that time, Shehata formed a joint partnership with co-defendant Laura Lee Sorsby, a Texas resident who conducted business through a company called Can Am International.
The victim was a Turkish resident who was the founder of a hospital in Istanbul, Turkey. The defendants offered the victim the opportunity to invest in a project that started out as a plan to build a hospital in Syria and evolved into a plan to build a shopping mall in Iraq. Based on the defendants’ false statements, the victim transferred money to Shehata’s bank in New York. Shehata wired the money from New York to his bank accounts in Kansas.
The defendants did not use the money for the hospital or shopping mall projects. Instead, Shehata bought an $111,000 car and an $855,000 house.
Sentencing will be set for a later time. Shehata faces up to 20 years in federal prison and restitution of more than $8.2 million. Beall commended The FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Indictment: Pizza Shop Owner Ran Drug Trafficking OperationRead the Press Release
TOPEKA, KAN. – A Topeka pizza shop owner and nine other people have been indicted on federal drug trafficking charges, U.S. Attorney Tom Beall said today.
A 35-count indictment unsealed Thursday alleges Adolfo Barragan-Rodriguez, owner of Pronto Pizza at 1121 SE 6th Ave. in Topeka, set up a trafficking organization that obtained methamphetamine from California and distributed it to buyers through a network of street dealers in Topeka.
The indictment alleges:
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Barragan-Rodriguez used his restaurant as a front for the drug trafficking organization. Investigators kept conspirators under surveillance as they came and went from Pronto Pizza with packages.
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Barragan-Rodriguez, who was known by the conspirators as Big Mike, managed the logistics of buying pounds of methamphetamine in California and shipping the drugs to Topeka, leaving other conspirators to handle street sales to users.
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Barragan-Rodriguez used Federal Express as a tool for his trafficking operation. For instance, a 4-pound package of meth and a package containing $14,900 in cash that were transported via Federal Express were seized during the investigation.
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Conspirators laundered drug proceeds through transactions at the Prairie Band Pottawattamie Casino north of Topeka.
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One of the defendants is charged with unlawful possession of 92 firearms.
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Some drugs were stored at a location within 1,000 feet of Mater Dei Catholic School.
Charges in the indictment include conspiracy, possession with intent to distribute methamphetamine, interstate transportation in furtherance of drug trafficking, use of a telephone in furtherance of drug trafficking, possession with intent to distribute methamphetamine within 1,000 of a school, money laundering and unlawful possession of firearms.
In addition to Barragan-Rodriguez, defendants named in the indictment include:
Michelle Belair, 34, Topeka.
Jose Medina-Benuto, 20, Topeka.
Michael Price, 42, Topeka.
Joseph Jones, 41, Topeka.
Linda Hardin, 48, Topeka.
Heather Hurley, 29, Topeka.
Daniel A. Rice, 57, Topeka.
Nicholas Casarona, 41, Topeka.
Jose Ruiz, 37, Topeka.
Upon conviction, the crimes carry the following penalties (see attached indictment for details):
Counts 1, 10, 11, 30, 32: Not less than 10 years in federal prison and a fine up to $10 million.
Counts 7 and 20: Not less than five years and not more than 40 years and a fine up to $5 million.
Counts 4, 6, 9, 13, 18 and 31: Up to 20 years and a fine up to $1 million.
Count 35: Not less than a year and not more than 40 years and a fine up to $2 million.
Count 12: Up to five years and a fine up to $250,000.
Counts 2, 3 and 5: Up to 20 years and a fine of more than $500,000.
Count 8: Up to 10 years and a fine of more than $500,000.
Counts 14-17 and 21-29: Up to four years.
Count 34: Up to 10 years and a fine up to $250,000.
Count 35: Up to 40 years and a fine up to $2 million.
The investigation was led by the Drug Enforcement Administration and the Topeka Police Department with assistance from the Shawnee County Sherriff’s Office, the Kansas Highway Patrol, the ATF, the FBI, and the Department of Homeland Security. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Salina Man Sentenced for Child PornographyRead the Press Release
WICHITA, KAN. – A Salina man was sentenced Wednesday to five years in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
David Patrick Newcomer, 35, Salina, Kan., pleaded guilty to one count of distributing child pornography. In his plea, Newcomer admitted that a Wichita police detective was able to download a movie containing child pornography from Newcomer’s computer using a file-sharing program. A forensic examination of Newcomer’s computer identified more than 19,000 images and videos of child pornography.
The Internet Crimes Against Children Task Force, the Wichita Police Department and Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jason Hart prosecuted.
Kansas Sex Offender Pleads Guilty to Transporting Virginia Teen for SexRead the Press Release
KANSAS CITY, KAN. – A registered sex offender from Kansas pleaded guilty Wednesday to picking up a 16-year-old girl in Virginia and taking her across state lines to have sex with him, U.S. Attorney Tom Beall said today.
Logan Viquesney, 21, Kansas City, Kan., pleaded guilty to one count of interstate transportation of a minor to engage in sexual activity. In his plea, he admitted he communicated with the victim over the internet while she was staying with her grandparents in Virginia. On May 30, 2016, the victim was reported missing from her grandparents’ home. Investigators learned that Viquesney had driven to Virginia, picked up the girl, and taken her with him on a trip that took them from Virginia to Maryland, Illinois, Missouri and Kansas. While on the trip, Viquesney had sex with the girl.
Viquesney was arrested after he arrived in Kansas City, Kan., with the girl.
Sentencing is set for July 31. Both parties have agreed to recommend a sentence of 15 years in federal prison.
Beall commended the Kansas City, Kan., Police Department, the Lenexa Police Department, the Kansas Bureau of Investigation, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Kansas Man Sentenced for Cashing Checks to Pay Undocumented WorkersRead the Press Release
WICHITA, KAN. – An Olathe man was sentenced Wednesday to time served (three years) for cashing millions of dollars’ worth of checks to pay undocumented workers for installing drywall, U.S. Attorney Tom Beall said.
Jose Torres-Garcia, 53, Olathe, Kan., pleaded guilty to one count of harboring or encouraging aliens to reside in the U.S. unlawfully and one count of operating an unlicensed money transmitting business. In his plea, he admitted he cashed checks for construction crew leaders so they could pay themselves and their crews. Operating from his business at Boost Mobile, 1319 Santa Fe, Olathe, Kan., Torres-Garcia received checks made payable to “Jose R. Torres Drywall,” even though he was not in the drywall business. He deposited the checks and distributed cash back to the crew leaders for distribution among the workers. Investigators determined that approximately $14 million passed through Torres-Garcia’s account in two years.
Beall commended Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, Assistant U.S. Attorney Jabari Wamble and Assistant U.S. Attorney Brent Anderson for their work on the case.
Texas Woman Sentenced in Designer Drug Case in KansasRead the Press Release
TOPEKA, KAN. - A Texas woman was sentenced Tuesday to five years in federal prison for selling designer drugs manufactured in Kansas, U.S. Attorney Tom Beall said. She was ordered to forfeit $2 million in proceeds from the crime.
Michelle Reulet, 37, Montgomery, Texas, pleaded guilty to one count of conspiracy to commit mail fraud. Reulet and co-defendant Michael Myers owned a business in the Houston area called Bully Wholesale. They sold products that were purchased from co-defendants Tracy Picanso and Roy Ehrett in Olathe, Kan.
The products Reulet’s company sold designer drugs marketed under names such as Pump It, Head trip, Black Arts and Grave Digger. In her plea, Reulet admitted she knew buyers consumed her products to get high, despite labels making false claims that the products were safe and were not intended for human consumption. The products were marketed as incense, potpourri and shoe deodorizer. Their labels did not warn of possible harmful effects.
Reulet’s business had gross sales of more than $2 million.
Co-defendants include:
Tracy Picanso, 61, Olathe, Kan., who is set for sentencing June 15.
Roy Ehrett, 59, Olathe, Kan., who is set for sentencing June 15.
Michael Myers, 37, Montgomery, Texas, who was sentenced to time served (two years).
Beall commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force, Assistant U.S. Attorney Tanya Treadway and Michael Varrone, Associate Chief Counsel, Food and Drug Administration, for their work on the case.
Wichita Business Owner Pleads Guilty in $250,000 Tax CaseRead the Press Release
WICHITA, KAN. – A Wichita business owner pleaded guilty Friday to withholding more than $258,000 in taxes from employee salaries that he failed to paid over to the government, U.S. Attorney Tom Beall said.
Michael J. Skladzien, 54, Wichita, Kan., pleaded guilty to one count of failing to pay over taxes. In his plea, he admitted that while he owned S&S Floor Maintenance he withheld approximately $258,610 from salaries of employees to pay federal taxes. Instead of paying the funds over to the government, he spent the money on personal expenses including gambling.
Sentencing is set for Aug. 11, 2017. He faces up to five years in federal prison. Beall commended Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Alan Metzger for their work on the case.
St Marys Man Sentenced for Tax EvasionRead the Press Release
TOPEKA, KAN. – A St. Marys man was sentenced Thursday to five years in federal prison for tax evasion, U.S. Attorney Tom Beall said. He was ordered to pay more than $8.4 million in restitution.
David G. Pflum, 71, St. Marys, Kan., owner of Coil Springs Specialties, was found guilty in a jury trial in January on one count of tax evasion and one count of obstructing the Internal Revenue Service. During trial, the prosecutor presented evidence that Pflum submitted false documents claiming he had less than $475 in assets and his income was $470 a month. In fact, he owned more than $2 million worth of real estate and his income was more than $16,000 a month. He urged renters, buyers and other people indebted to him to ignore collection efforts by the IRS.
Beall commended the IRS and Assistant U.S. Attorney Christine Kenney for their work on the case.
Wichita Man Sentenced for Turning Stolen Mail into False IdentitiesRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Thursday to 46 months in federal prison for turning stolen mail into 14 false identities, U.S. Attorney Tom Beall said.
Jeremy Peterson, 43, Wichita, pleaded guilty to one count of conspiracy to produce false identification documents. In his plea, he admitted that other conspirators provided him with stolen mail he used to produce counterfeit documents including driver’s licenses and state identification cards. He produced documents for 14 stolen identities that conspirators used to buy cars. Local auto dealers suffered an actual loss of more than $218,000 as a result.
Peterson was one of 13 defendants charged last year in USA v Below, an indictment alleging they took part in a $3.5 million fraud scheme.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
Pratt Company Pleads Guilty in Oil and Gas Fraud SchemeRead the Press Release
WICHITA, KAN. - A Pratt company pleaded guilty Thursday in an oil and gas fraud scheme, U.S. Attorney Tom Beall said.
Sonstone Trading LLC pleaded guilty to one count of wire fraud. In the plea, the company admitted it agreed to sell 3,000 barrels per month of crude oil to Parnon Industries. In fact, what Sonstone provided to Parnon was not crude oil. It was raw gas oil (RGO), which is a by-product obtained from recycling used motor oil. At sentencing, the court will determine the amount of loss. The government maintains the loss is more than $994,000. Sentencing is set for Aug. 10.
Charges against Sonstone executive David Lawson were dismissed.
For more information on oil and gas fraud from the Financial Fraud Enforcement Task Force, see www.stopfraud.gov/oil-gas-fwg.html .
Beall commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Indictment: Employee Embezzled $200,000 from BankRead the Press Release
WICHITA, KAN. - A Labette County woman was indicted Wednesday on a federal charge of embezzling more than $200,000 from the bank where she worked, U.S. Attorney Tom Beall said.
Debra J. Nading, 59, Oswego, Kan., was charged with one count of embezzlement by a bank employee. The indictment alleged Nading stole approximately $213,173 from Labette Bank while she worked as an assistant cashier.
If convicted, she faces up to 30 years in federal prison and a fine up to $1 million. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Xavier Jauregui Larios, 33, of Durango, Mexico, is charged with one count of possession with intent to distribute 10.7 kilograms of cocaine. The crime is alleged to have occurred April 10, 2017, in Clark County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Victor Irigoyen, 20, Garden City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 4, 2017, in Finney County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Darren M. Williams, 35, Wichita, Kan., and Ebony D. James, 24, Wichita, Kan., are charged with two counts of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of ammunition following a felony conviction. In addition, Williams is charged with one more count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in April 2017 in in Sedgwick County, Kan.
If convicted, they face up to 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wichita Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Juan Carlos Reyes-Flores, 36, Los Angeles, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 25, 2017, in Ellis County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
Jorge Carrillo-Hernandez, 35, who has been living in Kansas City, Mo., is charged with unlawfully re-entering the United States after he was convicted of an aggravated felony and deported. He was found in Kansas May 1, 2017.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
Victoria M. Carlile, 30, Liberal, Kan., is charged with counterfeiting $50 and $100 bills. The crime is alleged to have occurred in January 2017 in Seward County, Kan.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Office Manager Sentenced for Theft from Lawrence CompanyRead the Press Release
TOPEKA, KAN. - A former office manager for a Lawrence property management company was sentenced Tuesday to 24 months in federal prison for embezzlement, U.S. Attorney Tom Beall said. She was ordered to pay more than $485,000 in restitution.
Candy A. Gunderson, 45, Lawrence, pleaded guilty to one count of interstate transportation of stolen funds. In her plea, Gunderson admitted the crime took place from 2007 to 2015 while she was office manager for Garber Enterprises in Lawrence. She used various means to steal money from the company including:
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Depositing into her personal account checks made payable to Garber Enterprises.
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Issuing forged Garber Enterprises checks.
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Using company funds to pay bills for work performed on rental properties she owned.
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Using the company VISA card for personal expenses.
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Depositing cash belonging to the company into her personal accounts.
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Forging checks on Garber’s account to pay for personal phone bill.
Beall commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
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Truck Driver Sentenced for 44-Plus Pounds of CocaineRead the Press Release
KANSAS CITY, KAN. - A truck driver was sentenced Monday to 46 months in federal prison for hauling more than 44 pounds of cocaine to Kansas, U.S. Attorney Tom Beall said.
Erick Omar Rios, 37, San Ysidro, Calif., pleaded guilty to one count of possession with intent to distribute cocaine. In his plea, he admitted he was operating a tractor pulling a refrigerated trailer when he was stopped by the Kansas Highway Patrol. Troopers found 10 vacuum wrapped packages containing 44 pounds of cocaine hidden in a cooling unit on the trailer. They learned Rios had picked up the load in Los Angeles to deliver to Plainfield, Ind. He was expecting to be paid $4,000 when he returned to Los Angeles.
Beall commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Skip Jacobs for their work on the case.
Getaway Driver Sentenced in Leawood Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Kansas City man was sentenced Monday to 52 months for a robbery at a Leawood bank, U.S. Attorney Tom Beall said.
Chad English, 43, Kansas City, Mo., pleaded guilty to one count of bank robbery. In his plea, he admitted he drove the getaway car during an Aug. 24, 2016, robbery at Central Bank of the Midwest at 4801 Town Center Drive in Leawood. Co-defendant Terry Lovelady, 58, Kansas City, Mo., went into the bank and gave the clerk a note saying, “Hurry up. Put the $$ in the bag. No funny bizz.” He left the bank with stolen money and a hidden tracking device.
Police followed the tracking device to locate the getaway car where it was stopped at a traffic light at 119th Street and Glenwood. The robbers led police on a chase, running red lights, cutting off other drivers and reaching a speed of 90 mph. The robbers crossed into Missouri before stopping the car and fleeing on foot. Officers tackled English. Lovelady was found hiding in a hospital parking garage.
Lovelady pleaded guilty and he is set for sentencing July 31.
Beall commended the FBI, the Leawood Police Department, the Kansas City, Mo., Police Department and Assistant U.S. Attorney Leon Patton for their work on the case.
Former Roofing Company Executive Sentenced to Prison in Alien Employment CaseRead the Press Release
KANSAS CITY, KAN. - A former executive of a Kansas City-area roofing company has been sentenced to prison in connection with the company’s employment of aliens not authorized to work in the United States, U.S. Attorney Tom Beall announced today.
The former executive, Tommy F. Keaton, 71, Shawnee, Kan., was sentenced Monday by Chief U.S. District Judge Julie Robinson to 12 months and 1 day in federal prison, to be followed by one year of supervised release. Keaton was indicted in June 2016 in connection with the use of undocumented workers by Century Roofing, whose corporate name is Canadian West, Inc., to install commercial and residential roofs in the Kansas City metropolitan area.
In addition, Judge Robinson ordered the forfeiture of $1.4 million seized from Keaton in the case. Keaton remains on bond but must report to federal prison when so ordered by the U.S. Marshals Service. He pleaded guilty Feb. 16 to harboring an alien unlawfully in the U.S., a felony, pursuant to a plea agreement in which he admitted his conduct involved harboring up to 24 undocumented aliens in the United States through roofing projects managed by Century.
Previously, two other defendants pleaded guilty and were sentenced in the case, Graziano Cornolo, 56, Lenexa, and Alberto Diaz-Hernandez, 34. Cornolo pleaded guilty to unlawful employment of aliens and was placed on probation. In addition, Cornolo forfeited more than $800,000 and his interest in $500,000 seized from Century. Diaz-Hernandez pleaded guilty to misprision of a felony in connection with Century’s unlawful employment practices and was placed on two years’ probation.
In all, more than $2 million is assets were forfeited in the case, in addition to the criminal convictions and sentences. Beall said the case involved multiple local, state and federal law enforcement agencies led by Homeland Security Investigations, and he thanked them for their outstanding work on the case. The case was prosecuted by Assistant U.S. Attorney Brent Anderson.
Wichita Man Sentenced to 24+ Years in Federal Human Trafficking CaseRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Thursday to 293 months in federal prison for human trafficking, U.S. Attorney Tom Beall said.
Daederick Lacy, 26, Wichita, Kan., was found guilty in a jury trial in February on one count of sex trafficking of a minor, one count of sex trafficking of an adult by force, fraud or coercion and one count of interstate transportation of a minor in furtherance of prostitution.
During trial prosecutors, presented evidence that three female victims – two minors and an adult – were trafficked for sex by Lacy. Lacy advertised victims on an adult Web site, rented rooms at motels for sex, transported victims to meetings with men who paid for sex, and drove a minor victim from Kansas to Texas to serve as a prostitute.
Beall commended the Wichita Police Department, the Mesquite (Texas) Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Grand Jury Returns Indictment in Sexual Exploitation of a Child CaseRead the Press Release
KANSAS CITY, KAN. - A federal grand jury today indicted a Sedgwick County man on charges of sexually exploiting a child, U.S. Attorney Tom Beall said.
Ian Nathanial Smith, 20, Viola, Kan., is charged with one count of sexual exploitation of a child, one count of possessing child pornography and a new count of traveling across state lines to engage in sex acts with a child. Smith initially was charged in a criminal complaint filed May 4.
An investigator’s affidavit alleges Smith used social media to communicate over the internet with a 14-year-old girl in another state. He asked the girl to send him live streaming video of herself engaged in sexual activities. Investigators found child pornography on his phone, including 204 images and four videos.
If convicted, he faces not less than 15 years and not more than 30 years in federal prison on the charge of exploiting a minor, not less than 10 years and a fine up to $250,000 on the interstate travel charge and up to 10 years and a fine up to $250,000 on the possession charge. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER INDICTMENTS
Xzavier Christian Guliford, 24, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 18, 2017, in Jackson County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of alcohol, Tobacco, Firearms and explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Juan Gabriel Barron-Hernandez, 33, who has been living in Wichita, Kan., is charged with one count of unlawful possession of a firearm by an unauthorized alien, one count of illegal possession of a sawed off shotgun and one count of unlawful possession of a firearm with the serial number removed. The crimes are alleged to have occurred March 16, 2017, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000 on each of the first two counts and up to five years and an fine up to $250,000 on third count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Ruth Noemy Galvan, 25 Long Beach, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 24, 2017, in Clark County, Kan.
If convicted, she faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Topeka Man Pleads Guilty to Lying to Investigators Before Deadly StandoffRead the Press Release
TOPEKA, KAN. B A Topeka man pleaded guilty Tuesday to lying to investigators in a 2016 interview during a search for fugitive Orlando J. Collins, U.S. Attorney Tom Beall said today.
Quentin Kirk Lawton, 37, pleaded guilty to one count of making a false statement. In his plea, he admitted that on April 23, 2016, he visited Collins in a room at the Country Club Motel at 3732 S.W. Topeka Boulevard. Lawton left the motel shortly before a standoff between Collins and federal agents. When the FBI questioned Lawton about Collins’ whereabouts, Lawton denied he had been to the motel and seen Collins. In fact, Lawton was captured on video surveillance entering and leaving Collins’ room shortly before members of a federal task force attempted to arrest Collins.
When members of a task force tried to take Collins into custody he shot two U.S. Marshals and an FBI agent. A fire ignited from inside Collins’ room during the gunfight and spread throughout the motel. After the fire, Collins’ body was found in the motel room.
Sentencing is set for Aug. 14. Both parties have agreed to recommend a sentence of 42 months in federal prison. Beall commended the U.S. Marshals Service investigated and Assistant U.S. Attorney Jared Maag for their work on the case.
Wichita Man Sentenced for Carrying .45 Caliber Derringer in Furtherance of Drug TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to five years in federal prison for carrying a firearm in furtherance of drug trafficking, U.S. Attorney Tom Beall said.
Daniel Christian Thomas, 32, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted he was driving a PT Cruiser that had been reported stolen when the Sedgwick County Sheriff’s office stopped him. A search of the car turned up a .45 caliber Bond Arms Snake Slayer derringer and .410 shotgun shells as well three baggies containing methamphetamine, two digital scales and approximately $1,000 in cash.
Beall commended the Sedgwick County Sheriff’s Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Man and Woman from Manhattan Sentenced in Kidnapping, Death of Junction City WomanRead the Press Release
TOPEKA, KAN. - A man and a woman from Manhattan were sentenced Monday to 28 years in federal prison for taking part in the kidnapping of a Junction City woman who was killed during the abduction, U.S. Attorney Tom Beall said.
Larry L. Anderson, 28, Manhattan, Kan. pleaded guilty to one count of kidnapping resulting in death. His girlfriend, Marryssa M. Middleton, 26, Fort Riley, Kan. pleaded guilty to one count of conspiracy to commit kidnapping resulting in death.
The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan. In their pleas, Anderson and Middleton admitted that on Feb. 7, 2014, they and co-defendants met the victim, who was a prostitute, at a hotel in Junction City and kidnapped her. The defendants beat the victim in retribution for comments the victim had made on social media about having a sexual relationship with Anderson. During the beating, the defendants demanded the victim pay $300. They took the victim to another hotel room in an unsuccessful attempt to get the money, after which they transported the victim to a residence on Fort Riley.
While there, the defendants allowed the victim to call her mother. The victim’s mother realized the victim was in danger and called Junction City Police. When police called the victim’s number to check on her, and the defendants listened to the call on speaker phone. Fearing arrest, the defendants transported the victim to a bridge in a remote part of Geary County, where they resumed the beating and attacked her with a knife. The victim broke free and jumped off the bridge, falling 15 feet and breaking her ankle. Some of the defendants found the victim in the snow and resumed the assault during which they cut her throat and killed her.
Co-defendants include:
Drexel Woody, 26, who lived on Fort Riley at the time of the crime, is set for sentencing June 26.
Shantrell D. Woody, 27, Fort Riley, Kan., formerly an active duty service member, is set for sentencing May 30.
Christopher Pugh, 33, Junction City, Kan., is set for sentencing June 26.
Beall commended the Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division, the FBI, Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney Jared Maag and Geary County Attorney Steven Opat for their work on the case.
Kansas Medical Supplier to Pay $1 Million to Settle False Claim AllegationsRead the Press Release
KANSAS CITY, KAN. - A Dodge City medical equipment supplier has agreed to pay $1 million to settle allegations it submitted false claims to the Medicare program, U.S. Attorney Tom Beall said today.
Pos-T-Vac, Inc., a medical equipment supplier located in Dodge City, has agreed to pay the U.S. government $1 million to settle claims that it violated the False Claims Act by improperly charging Medicare for durable medical supplies.
The United States alleged that from Jan. 1, 2009 through July 27, 2012, Pos-T-Vac submitted claims for male vacuum erection supplies that were not medically necessary, lacked documentation of medical necessity, and/or were not properly ordered by a physician.
Medicare no longer covers such supplies.
“We must prevent waste, fraud and abuse in the Medicare and Medicaid programs,” said United States Attorney Tom Beall. “Billions of taxpayer dollars are at stake.”
“Our office will continue to protect the Medicare program by pursuing those providers who bill for medically unnecessary services and supplies,” said Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City, Mo.
During the investigation, Medicare suspended payments to Pos-T-Vac. Under the terms of the settlement, the government will retain those funds and Pos-T-Vac will make additional payments to the United States.
The U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the District of Kansas investigated. Assistant U.S. Attorney Jon Fleenor represented the government.
Former Teller Sentenced for Embezzling from Bank in Coffey CountyRead the Press Release
TOPEKA, KAN. - A former teller at a bank in Burlington was sentenced Friday to 51 months in federal prison for embezzling from the bank, U.S. Attorney Tom Beall said today. She was ordered to pay more than $850,000 in restitution.
Denise Christy, 48, Burlington, Kan., was convicted in a jury trial in January on one count of embezzlement, six counts of making false bank entries, six counts of filing false tax returns and six counts of money laundering.
During trial, the prosecutor presented evidence the crimes were committed while Christy worked as a retail financial services representative and backup vault teller for the Burlington branch of Central National Bank. One of Christy’s duties was to sell cash in the bank’s vault to the Federal Reserve Bank. In May 2014 auditors determined that more than $700,000 was missing from the vault. Christy falsely claimed the money was shipped to the Federal Reserve Bank via the Garda security company. An investigation showed Christy falsified bank records to cover up the embezzlement and failed to report the embezzled funds as part of her income. In addition, she unlawfully conducted financial transactions in order to spend more than $77,000 in embezzled funds to pay off loans that she and her husband maintained at Farmers State Bank in Aliceville, Kan.
Beall commended the Internal Revenue Service and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Crawford County Man Sentenced for Distributing Child PornRead the Press Release
WICHITA KAN. - A Crawford County man was sentenced Thursday to five years in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
Mark D. Busby, 48, Mulberry, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he installed software from the Ares file-sharing network on his computer and used it download child pornography and share it with other users. An investigator with the Kansas Internet Crimes Against Children Task Force downloaded child pornography from Busby’s computer.
Beall commended the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. attorney Jason Hart for their work on the case.
Sedgwick County Man Charged with Producing Child PornRead the Press Release
WICHITA, KAN. - A Kansas man was charged in U.S. District Court here Wednesday with producing child pornography, U.S. Attorney Tom Beall said.
Ian Nathanial Smith, 20, Viola, Kan., is charged with one count of sexual exploitation of a child and one count of possessing child pornography. An investigator’s affidavit alleges Smith used social media to communicate over the internet with a 14-year-old girl in another state. He asked the girl to send him live streaming video of herself engaged in sexual activities. Investigators found child pornography on his phone, including 204 images and four videos.
If convicted, he faces not less than 15 years and not more than 30 years in federal prison on the charge of exploiting a minor and up to 10 years and a fine up to $250,000 on the possession charge. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Registered Sex Offender Sentenced to 16+ Years for Distributing Child PornRead the Press Release
WICHITA KAN. - A registered sex offender from Wichita was sentenced Thursday to 195 months in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
Jeremy Michael Schmidt, formerly known as Jeremy Michael Davis, 41, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In 2013, Schmidt was convicted in Florida on a possession of child pornography charge and registered as a sex offender under the name Jeremy Michael Davis. He later changed his name to Jeremy Michael Schmidt.
Schmidt came to the attention of investigators in Wichita when they received four separate Cyber Tipline Reports from the National Center for Missing and Exploited Children. Investigators identified emails in which Schmidt provided links to child pornography.
Beall commended the Wichita Police Department, Homeland Security Investigations, the Internet Crimes Against Children Task Force and Assistant U.S. attorney Jason Hart for their work on the case.
Indictment: One Defendant, Eight Robberies in Five MonthsRead the Press Release
TOPEKA, KAN. – A federal grand jury returned an indictment Wednesday charging a Topeka man in eight robberies committed over a period of five months, U.S. Attorney Tom Beall said.
Joshua Alexander Musgraves, 24, Topeka, is charged in a superseding indictment with 13 counts as follows:
Date: Jan. 6, 2017
Place: Plato’s Closet, 1580 SW Wanamaker, Topeka.
Charges: Robbery (count one); brandish a weapon (count two).
Date: Jan. 20, 2017
Place: Kentucky Fried Chicken, 1812 NW Topeka in Topeka.
Charges: Robbery (count three), brandish a firearm (count four).
Date: March 23, 2017
Place: Burger King, 2817 Southeast California, Topeka.
Charges: Robbery (count five), brandish a firearm (count six).
Date: March 30, 2017
Place: McDonalds, 1100 S. Kansas, Topeka.
Charges: Robbery (count seven).
Date: April 3, 2017
Place: Subway restaurant, 1601 W. 23rd, Lawrence.
Charges: Robbery (count eight), brandish a firearm (count nine).
Date: April 4, 2017
Place: Wing Stop, 2233 Louisiana, Lawrence, Kan.
Charges: Robbery (count 10), brandish a firearm (count 11).
Date: Dec. 10, 2016
Place: Denison State Bank, 3640 Southwest Fairlawn, Topeka.
Charges: Bank robbery (count 12).
Date: Dec. 10, 2016
Place: Topeka
Charges: Carjacking (count 13).
If convicted, he faces the following penalties:
Counts one, three, five, seven, eight and 10: Up to 20 years and a fine up to $250,000.
Counts two, four and 11: Not less than seven years and a fine up to $250,000.
Counts six and nine: Not less than 10 years and a fine up to $250,000.
Count 12: Up to 25 years and a fine up to $250,000.
Count 13: Up to 15 years and a fine up to $250,000.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Arlie J. Barhum, 32, who is in custody in the Shawnee County Jail, is charged with is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 21, 2017, in Topeka.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Mark A. Richardson, 29, who is in custody in the Shawnee County Jail, is charged with is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 7, 2017, in Topeka.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Sandra Rodriguez-Ruiz, 36, Laveen, Ariz., is charged with one count of possession with intent to distribute heroin. The crime is alleged to have occurred March 25, 2017, in Ellsworth County, Kan.
If convicted, she faces a penalty of not less than 10 years and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Jaiquan Jahai Wheeler, 20, who is in custody, is charged with one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred March 14, 2017, in Shawnee County, Kan.
If convicted, he faces up to five years and a fine up to $250,000 on the marijuana charge, not less than five years and a fine up to $250,000 on the firearm in furtherance of drug trafficking charge, and up to 10 years and a fine up to $250,000 on the remaining count. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Texan Sentenced in Designer Drug Case in KansasRead the Press Release
TOPEKA, KAN. - A Texas man was sentenced Monday to time served (two years) for selling designer drugs manufactured in Kansas, U.S. Attorney Tom Beall said.
Michael Myers, 37, Montgomery, Texas, pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances and one count of conspiracy to commit mail fraud.
Myers was indicted in April 2014 along with co-defendants Tracy Picanso and Roy Ehrett, the owners of an Olathe-based business that produced and sold dangerous controlled substances and controlled substance analogs of THC (the active ingredient in marijuana) and methcathinones (stimulants). Picanso and Ehrett are awaiting sentencing.
Picanso and Ehrett sold products to distributors under names including Pump It, Head Trip, Black Arts, Grave Digger, Voodoo Doll and Lights Out. Some of the counterfeit drugs were manufactured in buckets with drill-powered immersion mixers and tried out on “testers” who helped tweak the recipes.
Myers and co-defendant Michelle Reulet lived together in Houston, Texas, and owned and operated Bully Wholesale, an independent wholesaler and distributor of products purchased from Picanso and Ehrett.
Ehrett routinely traveled from Kansas City to Houston to pick up cash from Reulet and Myers. On at least two occasions Myers met Ehrett in Oklahoma to transfer in excess of $100,000 cash to him. Investigators collected emails and text messages exchanged among the defendants. In an October 2011 email, for instance, Myers claimed the fake weed he was selling would not show up on a drug test. In a January 2012 email to Ehrett, Myers says he and Reulet were buying $600,000 to $900,000 worth of products each month from Ehrett and Picanso.
Beall commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force, Assistant U.S. Attorney Tanya Treadway, Michael Varrone, associate chief counsel at the Food and Drug Administration, and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Kansas Chiropractor to Pay $1 Million-plus to Settle False Claim AllegationsRead the Press Release
KANSAS CITY, KAN. – A Kansas City area chiropractor has agreed to pay more than $1 million to settle allegations his offices submitted false claims to Medicare for treating patients with peripheral neuropathy, U.S. Attorney Tom Beall said today.
Brian Schnitta and his clinic, Natural Way Chiropractic Center, P.A., have agreed to pay the U.S. government $1,038,903 to settle allegations that they violated the federal False Claims Act. Schnitta owns and operates chiropractic offices in Overland Park and Lenexa, Kan., and in Lee’s Summit, Mo.
The United States alleged that from July 1, 2011 through May 31, 2013, Schnitta and the clinic claimed they provided treatments for peripheral neuropathy and charged Medicare for several procedures that were not medically necessary or not otherwise covered by the program. The claimed procedures included nerve conduction tests, nerve block injections, and ultrasound needle guidance. Peripheral neuropathy affects nerves in the hands and feet and includes symptoms such loss of sensation and/or a burning sensation.
“Medicare is designed to ensure that this country’s elderly have access to vital health care services,” Beall said. “This office will continue efforts to protect the program and beneficiaries from providers that submit false claims for personal gain.”
“The investigation of Natural Way Chiropractic Center and its owner Brian Schnitta, D.C. reflects the seriousness with which our office views any allegations involving fraud, waste and abuse within our Federal health care programs,” said Special Agent in Charge Steven Hanson of the Kansas City Regional Office of Investigations for the Department of Health and Human Services.”
During the investigation, Medicare suspended payments to the clinic for the suspect services. Under the terms of the settlement, Schnitta and Natural agreed to forego those payments and to make additional payments to the government.
According to the agreement, Schnitta and Natural Way deny any wrongdoing.
The U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the District of Kansas investigated. Assistant United States Attorney Jon Fleenor represented the government.
Wichita Woman Sentenced in Identity Theft CaseRead the Press Release
WICHITA, KAN. - A Wichita woman who used stolen mail to create counterfeit checks and credit cards was sentenced Wednesday to 34 months in federal prison, U.S. Attorney Tom Beall said.
Lateasha Linthicum, 36, Wichita, Kan., pleaded guilty to one count of conspiracy to receive stolen mail and to commit theft. In her plea, she admitted she caused a loss of more than $300,000 to victims. When Wichita police served a search warrant at Linthicum’s room in the Inn at Tallgrass they found a large storage trunk containing documents credit cards, mail and checks in the names of other people.
Beall commended the Wichita Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
Wichita Man Sentenced for Brandishing Firearm in RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Wednesday to seven years in federal prison for brandishing a firearm during a robbery at a convenience store, U.S. Attorney Tom Beall said.
Quincy D. Hadley, 36, Wichita, admitted that on Oct. 26, 2016, he pointed a .40-caliber pistol at a clerk during a robbery at the Presto gas station at 4414 W. Maple in Wichita. Hadley demanded and received cash and cigarettes before he fled the store.
He was arrested when an officer responding to a 911 call found him changing clothes in a parked car.
Beall commended the Wichita Police Department and Assistant U.S. Attorney Brent Anderson for their work on the case.
Mail Carrier Sentenced for Stealing MailRead the Press Release
WICHITA, KAN. - A Derby man was sentenced Wednesday to 12 months and a day for stealing mail while he worked as a mail carrier, U.S. Attorney Tom Beall said.
Gary W. Yenzer, 34, Derby, Kan., pleaded guilty to one count of theft of U.S. mail. In his plea, he admitted that in August and September 2016 while working as a mail carrier in rural Sedgwick County he stole mail. Investigators learned Yenzer looked for birthday and anniversary cards so he could remove cash and gift cards. He kept the cash and sold some of the gift cards for cash, but he did not use the gift cards for fear of them bring traced to him.
Beall commended the U.S. Postal Service-Office of Inspector General and Assistant U.S. Attorney Brent Anderson for their work on the case.
Goddard Man Sentenced in Two Commercial RobberiesRead the Press Release
WICHITA, KAN. B A Goddard man was sentenced Wednesday to 41 months in federal prison for two commercial robberies in Wichita, U.S. Attorney Tom Beall said.
Austan Kinnaird, 26, Goddard, Kan., pleaded guilty to two counts of robbery. In his plea he admitted that on Dec. 24, 2015, he robbed Golf Headquarters at 848 N. Webb Road in Wichita. He entered the store wearing a wig and a cap. He showed the clerk what looked like a firearm and demanded money before he fled the store with the stolen cash.
In his plea, he further admitted that on April 29, 2016, he robbed a branch of Intrust Bank in a Dillons grocery store at 9450 E. Harry in Wichita. He gave the teller a note demanding money and fled the bank with the cash. He was identified after surveillance photos were made public.
Beall commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Federal Court Bars Kansas City Tax Return PreparersRead the Press Release
WASHINGTON — A federal court in Kansas City, Kansas has permanently barred Everett Bias and Integrity Solutions Tax Consultants Inc. (ISTC) from preparing federal tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Bias and ISTC prepared false returns for customers located in both Kansas City, Kansas and Kansas City, Missouri. In addition to barring the defendants from preparing tax returns, the court ordered the defendants to contact all customers for whom they prepared federal tax returns since 2014 to inform them of the permanent injunction and provide the United States with a list of all of these persons.
According to the government’s complaint, Bias and ISTC unlawfully prepared federal tax returns that lowered their customers’ federal tax liabilities by using S corporations. This type of corporation passes corporate income, losses, deductions, and credits to its shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. According to the government’s complaint, Bias and ITSC:
- Failed to report S corporation pass-through income as taxable income on the customers’ personal income tax returns;
- Falsely lowered the income of customers’ S corporations and then reported that false lowered income amount on the customers’ personal income tax returns;
- Improperly double-deducted customers’ personal expenses, such as mortgage interest and real estate taxes, on customers’ corporate and personal returns; and
- Concocted S corporations in order to improperly deduct customers’ personal expenses as business expenses and lower pass through income or create a phony flow through loss.
The government similarly alleged that Bias and ISTC concocted businesses for customers claiming that they were sole proprietors -- which are required to report its profit or loss on a Schedule C (Form 1040, Schedule C, “Profit or Loss from Business”) to the income tax return -- then fabricated the income and expenses of the fictitious business to show a loss, which falsely lowered their customers’ taxable income. Finally, the government alleged that Bias and ISTC fabricated itemized deductions such as unreimbursed employee business expenses and medical/dental expenses on their customers’ personal tax returns.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Indictment: Wichita Woman Provided Gun to Man Charged with MurderRead the Press Release
WICHITA, KAN. – A Wichita woman was indicted Tuesday on federal charges of providing a gun to a man who is charged with shooting and killing three people near Moundridge, Kan., U.S. Attorney Tom Beall said.
Myrta M. Rangel, 31, Wichita, is charged with:
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One count of aiding and abetting possession of a firearm in furtherance of drug trafficking (count one).
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One count of possessing a firearm in furtherance of drug trafficking (count two).
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One count of conspiracy to carry a firearm in furtherance of drug trafficking (count three).
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One count of transferring a firearm to be used in drug trafficking (count four).
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One count of unlawful possession of a firearm following a felony conviction (count five).
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One count of giving a firearm to a convicted felon (count six).
It is alleged that on Oct. 29, 2016, Rangel gave a .40 caliber handgun to Jereme Nelson. Nelson is charged in Harvey County District Court with killing three people: Travis Street, Angela May Graevs and Richard Prouty.
If convicted, she faces the following penalties:
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Count one: Not less than 10 years and a fine up to $250,000.
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Count two: Not less than five years and a fine up to $250,000.
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Count three: Up to 20 years and a fine up to $250,000.
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Counts four, five and six: Up to 10 years and a fine up to $250,000.
The Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Jack E. Smith, 37, Scammon, Kan., is charged with unlawfully trying to dispose of dispose of hazardous waste by setting fire to it.
Smith is charged with one count of unlawfully transporting hazardous waste and one count of unlawfully disposing of hazardous waste in violation of the Resource Conservation Recovery Act.
The indictment alleges that Smith towed a panel truck containing polymers and paints used in the making of gymnasium floors to property owned by his uncle in Crawford County, Kan. Neither he nor his uncle had a permit to transport, store or dispose of hazardous waste. Smith is alleged to have attempted to dispose of the hazardous waste by setting fire to the truck.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The Environmental Protection Agency investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jeffrey Shock, 37, Wichita, Kan., is charged with escaping from federal custody at Mirror, Inc., 3820 Toben, Wichita. Kan. The crime occurred on April 2, 2017.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Verlarina Ruth Collins, 50, Winfield, Kan., is charged with one count of failing to report to serve a 45-month federal prison sentence. The crime occurred April 7, 2017.
If convicted, she faces a penalty of up to five years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Serafin Alegria-Zamora, 35, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported, two counts of misusing a Social Security number and one count of aggravated identity theft. He was found April 11, 2017, in Sedgwick County, Kan.
If convicted, he faces up to two years and a fine up to $250,000 on the re-entry charge, up to five years and a fine up to $250,000 on each Social Security count and a mandatory two years (consecutive) on the identity theft count. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Sergio Roberto Garcia-Buezo, 31, a citizen of Honduras, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 19, 2017, in Grant County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Flores-Rivera, 34, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found April 17, 2017, in Butler County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting
Darnell Wilks, 48, Garden City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 18, 2017, in Finney County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Coffey County Man Used PlayStation to Collect Child PornRead the Press Release
WICHITA, KAN. - A Coffey County man pleaded guilty Friday to using a PlayStation video game console to obtain child pornography, U.S. Attorney Tom Beall said.
Michael L. Stratton, 30, Burlington, Kan., pleaded guilty to one count of receiving child pornography. In his plea, he admitted using a PlayStation 3 to chat about child pornography and trade child pornography.
According to court documents, Sony monitors user activities on the PlayStation Network. The network allows account holders to communicate in a way similar to text and emails. A user complained to Sony about Stratton, who was sending messages using the name Susan_14. Sony sent reports to the National Center for Missing and Exploited Children, which identified child pornography that Stratton had downloaded. Sony also determined that Stratton had sent messages to other users including: “u want to see naked kids tonight,” and “Friend Request. Do you have child porn?”
Sentencing is set for Aug. 7. The parties have agreed to recommend a sentence of five years in federal prison. Beall commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Topeka Woman Sentenced for Health Care Fraud Involving Developmentally Disabled AdultsRead the Press Release
TOPEKA, KAN. - A Topeka woman was sentenced Wednesday to 30 months in federal prison for billing Medicaid for services she did not provide to developmentally disabled adult patients, U.S. Attorney Tom Beall and Kansas Attorney General Derek Schmidt announced today. She was ordered to pay more than $480,000 in restitution.
Kristina Hansel, 45, Topeka, Kan., pleaded guilty in November 2016 in federal court in Topeka to one count of conspiracy to commit health care fraud. The crimes occurred while Hansel owned and operated Achieve Services, LLC, which was licensed to provide day and residential services to developmentally disabled adults.
In her plea, Hansel admitted the following:
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Billing Medicaid for services not provided.
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Providing false and fraudulent documentation, or no documentation at all.
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Making false and fraudulent statements to obtain and renew her license.
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Failing to hire a Registered Nurse or a License Practical Nurse to provide medical services, including medication administration.
Hansel also admitted that in one case she withheld medical treatment from a patient and directed others to help her cover up medication overdoses so licensing authorities would not learn of the problem.
The case was jointly investigated by federal and state authorities and prosecuted by the Kansas Attorney General’s Medicaid Fraud and Abuse Division.
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Wichita Man Sentenced in Jewelry Store Robbery and Bank RobberyRead the Press Release
WICHITA, KAN. - A Wichita man who held a jewelry store owner at gunpoint was sentenced Wednesday to 12 years in federal prison, U.S. Attorney Tom Beall said.
Terence L. Thomas, 25, Wichita, Kan., pleaded guilty to one count of brandishing a firearm during a jewelry store robbery and one count of bank robbery in a separate incident
In the jewelry store robbery, Thomas admitted he had a knife when he approached the owner of Kim Chee Jewelry at 2038 N. Broadway as the owner and his wife arrived for work. The owner drew a handgun in self-defense. The two men wrestled and shots were fired before Thomas got the gun. He forced the owner to open the door to the business. When Thomas tried to drag the owner’s wife into the business, she fell to the ground, feigning a heart attack. Thomas fled the scene after the owner locked him out of the business. A witness took photos of Thomas’ car as he fled, which helped police to identify Thomas and arrest him.
In a separate incident a month earlier, Thomas robbed the Fidelity Bank at 3525 E. Harry. He told the teller, “This is a robbery,” and counted down from twenty while the teller put cash in his bag. He fled the bank with the money.
Beall commended the Wichita Police Department, FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Two Wichita Men Sentenced in Armed Bank RobberyRead the Press Release
WICHITA, KAN. - Two Wichita men were sentenced Thursday to seven years in federal prison in connection with an armed robbery at a Wichita bank, U.S. Attorney Tom Beall said.
Raishat McGill, 35, Wichita, Kan., and Elijah Shelton, 26, Wichita, Kan., pleaded guilty to one count each of brandishing a firearm in a crime of violence. In their pleas, they admitted that on June 13, 2016, they robbed the Carson Bank at 4461 E. Douglas in Wichita. On that day, two individuals who were disguised entered the bank, one of them brandishing a firearm. The robbers demanded and received money before fleeing. The money they received contained a global positioning device that police used to track the defendants and arrest them.
Earlier this week, co-defendant Andre Bryant, 30, Wichita, Kan., was sentenced to seven years in the case.
Beall commended the Safe Streets Task Force, including the FBI, the Wichita Police Department and the Sedgwick County Sheriff’s Department, as well as Assistant U.S. Attorney Aaron Smith for their work on the case.
Grand Jury Returns More Charges Against Lindsborg Man in Foreign Travel for Sex CaseRead the Press Release
KANSAS CITY, KAN. - A federal grand jury here today returned additional charges against a Lindsborg man accused of traveling to a foreign country to have sex with minors, U.S. Attorney Tom Beall said.
Anthony Shultz, 54, Lindsborg, Kan., is accused of traveling to the Philippines, where he engaged in sex with minors, produced videos of sex acts with minors and distributed them on the internet. The case began in April 2016 when the FBI received a tip that a U.S. citizen was sexually abusing minors in the Philippines, producing live-streaming videos and distributing videos via the internet to users who paid to see them. Investigators followed an electronic trail to Shultz, who was a commercial pilot and owned a home in Lindsborg. He initially was charged in July 2016.
Schultz is charged with the following counts:
Count one: Engaging in illicit sexual conduct in a foreign place with a minor victim (victim 1).
Count two: Production of child pornography (victim 1).
Count three: Sex trafficking of children (new count, victim 1).Count four: Engaging in illicit sexual conduct in a foreign place with a minor victim (new count, victim 2).
Count five: Production of child pornography (new count, victim 2).
Count six: Sex trafficking of children (new count, victim 2).
Count seven: Production of child pornography (new count, victim 3).
Count eight: Selling or buying of children (new count, victim 3).
Count nine: Distribution of child pornography.
Count 10: Possession of child pornography (new count).
Count 11: Identity theft
Upon conviction, the crimes carry the following penalties:
Counts one and four: Not less than five years and not more than 30 years in federal prison and a fine up to $250,000.Counts two and five: Not less than 15 years and not more than 30 years and a fine up to $250,000.
Counts three and six: Not less than 15 years and a fine up to $250,000.Count seven: Not less than 15 and not more than 30 years and a fine up to $250,000.
Count eight: Not less than 30 years and a fine up to $250,000.Count nine: Not less than five years and not more than 20 years and a fine up to $250,000.
Count 10: Not more than 10 years and a fine up to $250,000.
Count 11: Up to five years and a fine up to $250,000.
The FBI and investigated. Assistant U.S. Attorney Jason Hart and Elly Pierson, a trial attorney with the Justice Department’s Child Exploitation and Obscenity Section, are prosecuting.
OTHER INDICTMENTS
Cesar Humberto Melandez-Morales, 28, a citizen of Mexico, is charged with unlawful possession of a firearm while in the United States. The crime is alleged to have occurred April 5, 2017, in Lincoln County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Kansas Highway Patrol and ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.