District of Kansas
Press releases recorded for this federal judicial district.
Olathe Woman Pleads Guilty in Identity Theft SchemeRead the Press Release
KANSAS CITY, KAN. – An Olathe woman pleaded guilty Monday in a scheme to collect income tax refunds by creating companies that existed only on paper, U.S. Attorney Tom Beall said.
Raquel Odegbaro, 39, Olathe, Kan., pleaded guilty to one count of conspiracy to defraud the government, one count of aggravated identity theft and one count of mail fraud.
Odegbaro was the owner of Cokeza Styles, an online business that sold hair products. In her plea, she admitted she and her co-conspirators created a series of fictitious companies and filed tax returns in the names of so-called employees by providing false information about wages earned, amounts withheld and refunds due. The false tax returns directed the Internal Revenue Service to deposit refunds electronically to reloadable credit cards controlled by the conspirators. The individuals whose names appeared on the refunds never actually worked for the fictitious companies.
In addition, the conspirators used stolen Social Security numbers to apply for unemployment benefits from the Kansas Department of Labor. They created more than nine fictitious companies and registered them with the labor department. They filed false claims in the names of employees who purportedly were terminated without fault.
Odegbaro is set for sentencing on April 19, 2017. Both parties have agreed to recommend a sentence of 75 months in federal prison and restitution of more than $894,000.
Co-defendants Abdirizak Aden, 32, Kansas City, Mo; Alexander Limihagati, 33, Overland Park, Kan., Zia Mkubi Kajanja, 40, Overland Park, Kan., are awaiting trial.
Beall commended the Internal Revenue Service – Criminal Investigation, the U.S. Department of Labor, Office of Inspector General, Office of Labor and Racketeering and Fraud Investigations, the Kansas Department of Children and Families, the U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Department of Education – Office of Inspector General, and the U.S. Department of Agriculture – Office of Inspector General and Assistant U.S. Attorney Jabari Wamble for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Kansas Man Sentenced to 52 Months for Exporting Firearms to Overseas Purchasers Using Hidden Marketplace WebsiteRead the Press Release
A Kansas man was sentenced today to 52 months in prison for his role in a scheme involving the illegal export of firearms from the United States using a hidden online marketplace, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Tom Beall of the District of Kansas.
Michael Andrew Ryan, aka Brad Jones and GunRunner, 36, of Manhattan, Kansas, previously pleaded guilty to six counts of exporting and attempting to export firearms illegally from the United States to individuals located in other countries on June 6, 2016, and was remanded into custody on Oct. 6, 2016. In addition to imposing today’s prison sentence, U.S. District Judge Daniel D. Crabtree of the District of Kansas ordered Ryan to forfeit all firearms and ammunition seized by law enforcement during the investigation.
In connection with his plea, Ryan admitted that he used the hidden internet marketplace Black Market Reloaded, a website hosted on the Tor network where users can traffic anonymously in illegal drugs and other illegal goods, to unlawfully export or attempt to export firearms from the United States to Cork, Ireland; Mallow, Ireland; Pinner, England; Edinburgh, Scotland; Victoria, Australia. These goods included dozens of firearms, including pistols, revolvers, UZIs and Glocks, some from which the manufacturer’s serial numbers had been removed, altered or obliterated, as well as magazines and hundreds of rounds of ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kansas City Field Division investigated the case with assistance from ATF’s National Investigative Division; U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Manhattan and Riley County, Kansas, Police Departments. Assistant U.S. Attorney Greg Hough of the District of Kansas and Senior Counsel Marie-Flore Johnson of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Executor of Estate Pleads Guilty to Fraud in Sale of CondoRead the Press Release
TOPEKA, KAN. B A Wabaunsee County woman who was the executor of her mother’s estate pleaded guilty Monday to fraud in the sale a South Padre Island condo, U.S. Attorney Tom Beall said.
Julie D. Woodland, 55, Maple Hill, Kan., pleaded guilty to one count of interstate transportation of funds obtained by fraud. In her plea, she admitted she served as trustee of trusts set up by her parents, Stephen W. Dibble and Elaine R. Dibble. It was her parents’ intent that proceeds of the trusts be shared equally among Woodland and her siblings, Lance A. Dibble and Stan Dibble. Woodland also was executor of her mother’s estate.
Woodland sold a condo in Texas belonging to the trust for $270,000. She distributed half the proceeds to her brother, Stan Dibble, and she kept the rest. Her brother, Lance Dibble, requested an accounting of the trust funds, but she refused to provide the information.
Sentencing is set for May 8. She faces up to 10 years in federal prison and a fine up to $250,000. Beall commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Three Defendants Sentenced in Real Estate Fraud CaseRead the Press Release
KANSAS CITY, KAN. – Three defendants were sentenced Tuesday for taking part in a real estate fraud scheme in which developers borrowed to build townhomes at Table Rock Lake, U.S. Attorney Tom Beall said today.
David P. Drake, 67, Lone Tree, Colo., was sentenced to 5 years in federal prison.
Donald D. Snider, 57, Littleton, Colo., was sentenced to 5 years in federal prison.
Heather A. Gibbs, 54, Donald Snider’s wife, was sentenced three years on probation.
Drake and Snider pleaded guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. In their pleas, Drake and Snider admitted they were business partners in a company called Western Site Services that set out to develop land in a project known as Indian Ridge Resorts. They made false representations in order to obtain financing from three banks including Columbian Bank and Trust.
In her plea, Gibbs admitted she knew that the developers submitted fraudulent invoices to the banks and she did not report the crime.
Beall commended the Federal Deposit Insurance Corporation - OIG, the Internal Revenue Service, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Georgia Man Charged with Cyber Crime That Cost Sedgwick County $566,000Read the Press Release
WICHITA, KAN. B A Georgia man has been arrested on federal charges he carried out an e-mail spoofing scheme that cost Sedgwick County $566,000, U.S. Attorney Tom Beall said.
George S. James, 48, Brookhaven, Ga., is charged with one count of wire fraud. An FBI agent’s affidavit alleges that investigators followed an electronic trail that led them to James after Sedgwick reported the theft of funds that were intended to pay Cornejo & Sons, LLC, for work done on a road project.
The criminal complaint alleges that on Sept 23, 2016, Sedgwick County received an e-mail purporting to be from the CEO of the Cornejo company and with a form attached requesting payments be made electronically to a new account at a Wells Fargo Bank in Georgia. Payment was made on Oct. 7, 2016, after which time the county learned that Cornejo did not receive the payment and did not send the e-mail to the county. James fraudulently received the payment through an account he held at a Georgia bank in the name of Rapid Repairs and Consultants.
The criminal complaint alleges the scheme involved providing false information over the Internet to the county’s Automated Clearing House. The fraudulent email caused the county to change the information it kept on file for the Cornejo company’s financial institution and bank account. The email request was sent from [email protected] to [email protected].
If convicted, he faces a penalty of up to 20 years in federal prison and a fine up to $25,000. The FBI, the Sedgwick County Sheriff’s Office and the Wichita Police Department 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.
Two Wichita Men Plead Guilty in Armed Bank RobberyRead the Press Release
WICHITA, KAN. B Two Wichita men pleaded guilty Monday of brandishing or aiding and abetting another robber who brandished a firearm during a bank robbery, U.S. Attorney Tom Beall said.
Raishat McGill, 35, Wichita, Kan., and Elijah Shelton, 25, 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.
McGill and Shelton are set for sentencing April 13. In both cases, the parties have agreed to recommend a sentence of 84 months in federal prison. Earlier this month, co-defendant Andre Bryant, 30, Wichita, Kan., pleaded guilty to the same charge. He is set for sentencing April 10.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
Man Pleads Guilty to Bank Robbery He Blamed on a Fight with His WifeRead the Press Release
KANSAS CITY, KAN. B A Kansas City, Kan., man who told investigators he preferred jail to living with his wife pleaded guilty Monday to a federal bank robbery charge, U.S. Attorney Tom Beall said.
Lawrence John Ripple, 70, 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.
Sentencing will be set for a later date. He faces up to 20 years in federal prison and a fine up to $250,000. Beall commended the FBI and Assistant U.S. Attorney Sheri Catania for their work on the case.
Indictment: Scam Targeted Homeowners Facing ForeclosureRead the Press Release
KANSAS CITY, KAN. B A Missouri man is set to appear in federal court here Monday on charges he and his accomplices scammed desperate homeowners with false promises to help them save their homes, U.S. Attorney Tom Beall said.
A federal indictment alleges the defendants used the U.S. Postal Service and the Internet to target victims with financial problems.
Tyler Korn, 27, St. Ann, Missouri, is charged with one count of conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, and five counts of wire fraud. Co-defendants Amjad Daoud, 32, Lutz, Fla., and Ruby Price, 72, Bonner Springs, Kan., already have appeared in federal court in Kansas City, Kan., in the case.
The indictment alleges Korn and Daoud used the address of a UPS store in Overland Park, Kan., to form Reliant Home Financial Group, a company they operated out of the St. Louis metro area. Price operated The Arize Group from rented space in Overland Park. Together, they devised a scheme to defraud homeowners with false promises of protecting them from foreclosure.
The indictment alleges the defendants fraudulently promised the victims to:
-- Lower their interest rates.
-- Lower their monthly payments
-- Help them obtain loan modifications.
When victims received foreclosure notices, the defendants allegedly advised them not to worry about it.
If convicted, Korn faces up to 20 years in federal prison and a fine up to $1 million on each count. The Department of Housing and Urban Development investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Three Men Charged with Smuggling Liquid Methamphetamine in Gas TankRead the Press Release
KANSAS CITY, KAN. B Three men from Mexico appeared in federal court in Topeka today on charges of smuggling liquid methamphetamine into Kansas City, Kan., in the gas tank of a semi-trailer truck, U.S. Attorney Tom Beall said.
The defendants are alleged to have smuggled more than 1,000 pounds of liquid methamphetamine that they pumped out of the gas tank of the truck.
Heraclio Estrella-Montero, 30, Yoan Alejandro Castillo-Zamora, 30, and Fernando Chavez-Rodriquez, 40, all of Mexico, are charged with one count of possession with intent to distribute methamphetamine.
According to court papers, the men were arrested in Kansas City, Kan., about 7:30 p.m. Friday, Jan. 13, after pumping the liquid methamphetamine from the truck into five-gallon buckets.
If convicted they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. Investigators include the Drug Enforcement Administration, the Kansas City DEA Special Response Team, and the Kansas City, Kan., Police Department. Assistant U.S. Attorney Greg Hough is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Medical Imaging Provider Sentenced for Federal Health Care FraudRead the Press Release
TOPEKA, KAN. B A man who owned a medical imaging business was sentenced Thursday to 18 months in federal prison for health care fraud, U.S. Attorney Tom Beall said. In addition, the defendant was ordered to pay more than $1.5 million in restitution to Medicare and Medicaid.
Cody Lee West, 38, 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.
In his plea, West admitted he 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.
Topeka Man Indicted on Bank Robbery ChargeRead the Press Release
TOPEKA, KAN. – A federal grand jury returned an indictment Wednesday charging a Topeka man with bank robbery, U.S. Attorney Tom Beall said.
Dakota Shareef Walker, 20, Topeka, Kan., is charged with one count of bank robbery. The indictment alleges that on Nov. 28, 2016, he robbed the U.S. Bank at 5730 Southwest 21st Street in Topeka.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER GRAND JURY INDICTMENTS
Jesus S. Arrendondo, 26, Kansas City, Kan., is charged with one count of assaulting a person on federal property with intent to commit bodily harm. The crime is alleged to have occurred Nov. 6, 2016 at Fort Riley.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Fort Riley Police Department investigated. Assistant U.S. Attorney Duston Slinkard and Special Assistant U.S. Attorney Robin Graham are prosecuting.
Donald R. Schooler, 56, is charged with failing to register as required under the federal Sex Offender Registration and Notification Act.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshal Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Roberto Munoz-Aguilar, 41, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 21, 2016, in Ford 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 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
Jury Convicts Former Teller of Embezzling from Bank in Coffey CountyRead the Press Release
TOPEKA, KAN. B A federal jury Thursday convicted a former teller at a bank in Burlington on charges of embezzling approximately $700,000, U.S. Attorney Tom Beall said today.
Denise Christy, 48, Burlington, Kan., was convicted 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.
Sentencing is set for April 17. The crimes carry the following penalties:
Embezzlement: A maximum penalty of 30 years in federal prison and a fine up to $1 million.
Making false bank entries: A maximum penalty of 30 years in federal prison and a fine up to $1 million on each count.
False tax returns: A maximum penalty of three years and a fine up to $100,000 on each count.
Money laundering: A maximum penalty of 20 years and a fine up to $50,000 on each count.
Beall commended the Internal Revenue Service and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Defendant Sentenced for Involuntary Manslaughter in Shooting Death at Fort RileyRead the Press Release
TOPEKA, KAN. – A 19-year-old man was sentenced Thursday to 18 months in federal prison for involuntary manslaughter in the shooting death of a 16-year-old boy on Fort Riley, U.S. Attorney Tom Beall said. The defendant also was ordered to pay $5,000 in restitution for funeral expenses.
Juwuan D. Jackson, 19, who lived on the Fort Riley base at the time, pleaded guilty to one count of involuntary manslaughter. He admitted that on Sept. 11, 2015, he handled a firearm in a reckless manner, resulting in the shooting death of 16-year-old Kenyon Givens, Jr., who also lived on Fort Riley.
According to court records, when military police responded to the shooting Jackson told them an unknown intruder wearing a mask had forced his way into the home and shot Givens. Paramedics were not allowed to enter and treat Givens until military police had searched the house for an intruder. At the same time, police began searching the neighborhood to find the weapon and the masked shooter.
Investigators eventually learned that Jackson had been playing with a loaded .22 caliber handgun before the shooting. Jackson spun the chamber while holding the trigger. The revolver discharged and a bullet struck Givens in the chest.
Beall commended the Army Criminal Investigations Division and the FBI, Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Wichita Man Pleads Guilty in Armed RobberyRead the Press Release
WICHITA, KAN. B A Wichita man pleaded guilty Tuesday of brandishing or aiding and abetting another robber who brandished a firearm during a bank robbery, U.S. Attorney Tom Beall said.
Andre Bryant, 30, Wichita, Kan., pleaded guilty to one count of aiding and abetting or brandishing a firearm in a crime of violence. In his plea, he admitted that on June 13, 2016, he and co-defendants robbed the Carson Bank at 4461 E. Douglas in Wichita. Two individuals who were disguised entered the bank, one of them brandishing a firearm. They demanded and received money before fleeing. The money they received contained a global positioning device that police used to track Bryant and the co-defendants and arrest them.
Bryant is set for sentencing April 10. Both parties have agreed to recommend a sentence of 84 months in federal prison.
Co-defendants Raishat Magill and Elijah Shelton are awaiting trial.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Texas Woman Pleads Guilty in Designer Drug Case in KansasRead the Press Release
TOPEKA, KAN. – A Texas woman pleaded guilty Monday to selling designer drugs manufactured in Kansas, U.S. Attorney Tom Beall said.
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.
Sentencing is set for April 17. Both parties have agreed to recommend a sentence of five years in federal prison and a civil forfeiture of almost $2 million.
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 Assistant U.S. Attorney Tony Mattivi for their work on the case.
Former Banker Sentenced for Not Reporting Suspicious ActivityRead the Press Release
WICHITA, KAN. – A former president of a bank in Plains, Kan., was sentenced Monday to one year on federal probation for not reporting suspicious activity in a customer’s bank account, U.S. Attorney Tom Beall said.
James Kirk Friend, 53, Plains, Kan., pleaded guilty to one count of failing to file a Suspicious Activity Report while he worked at Plains State Bank in Plains, Kan. Friend failed to report suspicious activity in the account of George and Agatha Enns, bank customers who were indicted on charges of laundering proceeds of drug trafficking. Friend admitted he was aware of significant currency and third party check deposits in the Enns’ account that he knew should have been reported. The bank used software to detect suspicious activity and the software flagged the Enns’ account on a regular basis.
The Enns pleaded guilty to money laundering conspiracy. They are set for sentencing Feb. 27.
Beall commended the Drug Enforcement Administration, the Federal Deposit Insurance Corporation, the Internal Revenue Service and Assistant U.S. Attorney Debra Barnett for their work on the case.
Rose Hill Man Pleads Guilty to Federal Identity Theft ChargeRead the Press Release
WICHITA, KAN. B A Rose Hill man pleaded guilty Friday to a federal identity theft charge, U.S. Attorney Tom Beall said.
Justin Alan Vanley, Rose Hill, Kan., pleaded guilty to one count of aggravated identity theft. In his plea, he admitted a co-defendant gave him a U.S. Postal Service roster with personal information for two postal service employees. Vanley used the identity of one of the postal workers to apply for a Chase Marriott credit card with a $32,000 credit limit. He waited for the card to arrive in the mail and intercepted the card before it reached the victim.
Vanley was one of 13 people charged in an indictment returned in May alleging they were part of a $3.5 million identity theft scheme.
Sentencing is set for March 24. Vanley faces a penalty of two years in federal prison and a fine up to $250,000.
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 Assistant U.S. Attorney Alan Metzger for their work on the case.
Iraqi Man Who Lied About Being Army Translator Sentenced for Visa FraudRead the Press Release
KANSAS CITY, KAN. - An Iraqi man who falsified his application for a visa by claiming to have worked as a translator for the U.S. Army in Iraq was sentenced Wednesday to two years in federal prison, U.S. Attorney Tom Beall said.
Goran Sabah Ghafour, 35, who lived in Lawrence, Kan., while he was a graduate student at the University of Kansas, pleaded guilty to one count of visa fraud and one count of aggravated identity theft.
In his plea, Ghafour admitted he applied for a visa under a program allowing Iraqi nationals who worked for or on behalf of the U.S. government in Iraq to qualify for a visa. To support a false claim that he worked as a translator for the U.S. Army Ghafour fabricated a letter from an Army officer recognizing his work. In fact, the officer whose name was on the letter did not know Ghafour and did not consent to Ghafour writing the letter.
Beall commended Homeland Security Investigations and Assistant U.S. Attorney Chris Oakley for their work on the case.
Indictment: Bank Employees Recognized Robber as Customer of the BankRead the Press Release
WICHITA, KAN. – A federal grand jury returned an indictment Wednesday charging a Wichita woman with bank robbery, U.S. Attorney Tom Beall said.
Christina A. Messerschmidt, 25, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on Dec. 16, 2016, Messerschmidt robbed Intrust Bank at 1544 S. Webb in Wichita. Court documents allege she gave a teller a note written on a deposit slip saying, “Give me $1,000 or I will shoot you.” She told the teller, “If you push it, I’ll do it.”
Bank employees told police they recognized the woman as a customer who had opened an account in November and they provided police with her address, leading to her arrest.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000. The FBI and the Wichita Police investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Other Indictments
Miguel Arreola-Rosas, 37, Kansas City, Kan., is charged with unlawfully re-entering the United States after being deported. He was found in Wyandotte County, Kan.
If convicted, he faces up to two years in federal prison. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Shawnee Man Pleads Guilty to Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Shawnee man pleaded guilty Tuesday to robbing an Overland Park bank at gunpoint, U.S. Attorney Tom Beall said.
Mamoudou U. Kaba, 21, Shawnee, pleaded guilty to one count of bank robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that he brandished a gun on Sept 22, 2015, when he robbed U.S. Bank at 9900 West 87th in Overland Park, Kan.
He pointed a gun at a clerk and customers before fleeing the bank with stolen cash.
He faces up to 25 years on the robbery charge and not less than seven years on the firearm charge, with the sentences running consecutively.
The Overland Park Police Department and the FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Physician’s Assistant Sentenced for Violating Federal Food, Drug and Cosmetic ActRead the Press Release
TOPEKA, KAN. – A physician’s assistant who gave Botox injections to clients in Garden City and Scott City was sentenced Tuesday to a year on federal probation for violating the federal Food, Drug and Cosmetic Act, U.S. Attorney Tom Beall said.
Joel Erskin, 53, Garden City, Kan. pleaded guilty to one count of receiving and dispensing misbranded drugs. In his plea, he admitted the crimes occurred while he owned and operated Renovo Medical, LLC, also known as University Medical. Erskin purchased cheaper versions of Botox® and Juvaderm® from Canadian pharmacies. The Botox he purchased was misbranded and failed to meet labeling requirements. The Juvaderm was adulterated and not approved for distribution in the United States.
Erskin did not inform his clients that the drugs were purchased from Canada and did not meet federal standards.
Beall commended the Food and Drug Administration’s Office of Criminal Investigation and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Leavenworth Woman Sentenced for Embezzling from BankRead the Press Release
KANSAS CITY, KAN. - A Leavenworth woman was sentenced Tuesday to four months in custody followed by four months home confinement for embezzling more than $500,000 from the bank where she worked, U.S. Attorney Tom Beall said. In addition, she was ordered to pay full restitution.
Ashley Blacketer, 29, Leavenworth, Kan., pleaded guilty to one count of embezzlement by a bank employee. In her plea, she admitted the crime occurred while she worked for Exchange National Bank & Trust in Leavenworth.
Over a period of six years, Blacketer covered up the crime by falsifying a ledger showing the amount of cash in the bank’s vault. The crime was discovered during an audit after she left the bank for another job.
Beall commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
KCK Man Sentenced in Robbery at Stilwell, Kan., BankRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man was sentenced Tuesday to 30 years for taking part in an armed robbery at a Stillwell bank and leading police on a high speed chase with a child in his car, U.S. Attorney Tom Beall said.
Gary Jordan, 40, Kansas City, Kan., pleaded guilty to one count of bank robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction.
In his plea, Jordan admitted that on March 9, 2016, he and co-defendant Jacob L. Smith, 19, Kansas City, Kan., were armed with handguns when they entered the First National Bank at 7460 W. 199th Street in Stilwell, Kan. They held tellers at gunpoint before fleeing with cash stuffed in a backpack. Jordan took the wheel of the getaway car.
During the next 25 minutes, the robbers were pursued by the Kansas Highway Patrol, the Leawood Police Department and other law enforcement agencies as they fled across the Kansas/Missouri state line. During the chase, Smith fired at officers six times from the car. After the car overturned on a sharp turn, the defendants were arrested. Throughout the chase, co-defendant Danille Morris, 27, Kansas City, Kan., and her 19-month-old child were in the car. She is set for sentencing Jan. 26. Jacob Smith is set for sentencing Jan. 17.
Beall commended all the agencies that assisted in the investigation including the FBI, the Johnson County Sheriff’s Office, the Kansas Highway Patrol, the Leawood Police Department, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department, as well as the prosecutor, Assistant U.S. Attorney Chris Oakley
Arizona Man Sentenced to 10 Years for Trafficking Meth in WichitaRead the Press Release
WICHITA, KAN. - An Arizona man was sentenced Tuesday to 10 years in federal prison for trafficking methamphetamine in Wichita, U.S. Attorney Tom Beall said.
Samuel Below, 29, Phoenix, Ariz., pleaded guilty to one count of interstate travel in furtherance of drug trafficking and one count of carrying a firearm in furtherance of drug trafficking. He admitted that on Jan. 12, 2016, he traveled from Phoenix to Wichita with more than half a pound of methamphetamine he intended to distribute here. He also admitted that on Jan. 15, 2016, he carried a Sig Sauer 5.56 caliber pistol in furtherance of drug trafficking.
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 investigated, Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Alan Metzger for their work on the case.
Topeka Woman Pleads Guilty to Sex Trafficking of MinorRead the Press Release
TOPEKA, KAN. - A Topeka woman pleaded guilty Monday to the sex trafficking of a minor, U.S. Attorney Tom Beall said.
Michaela Hekekia, 36, Topeka, Kan., pleaded guilty to one count of conspiracy. In her plea, she admitted training a minor female to work as a prostitute and transporting the girl from Kansas to a motel in Joplin, Mo., to work as a prostitute.
Hekekia admitted conspiring with co-defendants to run a Topeka-based prostitution business that operated in Kansas, Missouri and Nebraska. At times, as many as 20 females were working as prostitutes for the organization. The leader of the organization rented houses where some of the prostitutes were allowed to live. The organization used Web sites, social media and cell phones to advertise sexual services and to keep track of prostitutes.
Hekekia admitted she started working for the organization as a prostitute and gradually took on other duties including recruiting and training sex workers and managing advertising for sex services.
Sentencing is set for March 20. The government has agreed to recommend a sentence not to exceed 70 months in federal prison.
Co-defendant Frank Boswell, 42, Topeka, Kan., is set for trial March 7. Co-defendants Rachel Flenniken, 34, Topeka, Kan., and Sean P. Hall, 47, Topeka, Kan., are awaiting sentencing. Shannon Nelson, 23, Topeka, Kan., is set for sentencing Jan. 23.
Beall commended the FBI, the Topeka Police Department, Homeland Security Investigations and Assistant U.S. Attorney Christine Kenney for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Mexican Citizen Sentenced for Possessing Firearm Connected to HomicideRead the Press Release
WICHITA, KAN. - A Mexican woman was sentenced Monday to time served for unlawful possession of a firearm connected to a homicide case in Salina, U.S. Attorney Tom Beall said. She will be placed in the custody of Immigration and Customs Enforcement for deportation.
Azucena Garcia-Ferniza, 22, spent about 15 months in jail. She pleaded guilty in U.S. District Court in Wichita to one count of possession of a firearm while unlawfully in the United States. In her plea, she admitted that on May 7, 2015, she unlawfully possessed a Glock .45 caliber pistol. Her visitor’s visa had expired in February 1998.
In July 2016, Garcia-Ferniza was sentenced in Saline County District Court to18 months on probation for attempting to hide the gun that killed 17-year-old Allie Saum. The gun belonged to her boyfriend, Macio D. Palacio, Jr. Saum was killed by gunfire when Palacio fired at a pickup he mistakenly believed was driven by rival gang members.
Palicio was convicted in Saline County District Court and sentenced to more than 50 years for the killing.
Beall commended Immigration and Customs Enforcement’s Enforcement and Removal Operations, the Salina Police Department, the Saline County Sherriff’s Office, the Saline County Attorney’s Office and Assistant U.S. Attorney Brent Anderson for their work on the case.
Medical Imaging Provider Charged with Federal Health Care FraudRead the Press Release
TOPEKA, KAN. - A man who owned a medical imaging business was charged in federal court here today with collecting more than $1.5 million from a health care fraud scheme, U.S. Attorney Tom Beall said.
Cody Lee West, 38, Paragould, Ark., owner of C & S Imaging, Inc., was charged with 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.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Department of Health and Human Services and the Kansas Attorney General’s Medicaid Fraud Division investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
Man Admits Using Stolen Identity to Try to Buy $52,000 CarRead the Press Release
WICHITA, KAN. - An Arizona man pleaded guilty Monday to using a stolen identity in an effort to buy a $52,000 car from a Wichita auto dealer, U.S. Attorney Tom Beall said.
Thomas Rye, 36, Phoenix, Ariz., pleaded guilty to one count of wire fraud. In his plea, he admitted that on Jan. 2, 2016, he called Eddy’s Chrysler Dodge Jeep Ram in Wichita and applied for a pre-approved line of credit to purchase a car. He used a stolen identity for a credit check and tried to use the victim’s credit to buy a Dodge Challenger Hellcat valued at $52,725. Mistakes in the credit application paperwork caused employees of the dealership to become suspicious and they called police. Rye was arrested at the scene.
Rye was one of 13 defendants named in an indictment in May alleging they were part of an organization that attempted to fraudulently obtain a total of $3.5 million in credit and cash. The indictment alleged the conspirators divided up the work of stealing mail from mailboxes, fraudulently applying for credit and shopping with stolen identities.
Sentencing is set for March 6. He faces up to 20 years in federal prison and a fine up to $250,000. 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, Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Debra Barnett for their work on the case.
Towanda Man Sentenced for Armed RobberyRead the Press Release
WICHITA, KAN. - A Towanda man was sentenced Thursday to seven years in federal prison for robbing an Arkansas City business at gunpoint, U.S. Attorney Tom Beall said.
Jason A. Farner, 32, Towanda, Kan., pleaded guilty to one count of brandishing a firearm during a commercial robbery. In his plea, he admitted he brandished a .380 caliber handgun on Feb. 11, 2016, when he robbed Advance America in Arkansas City, Kan. Farner was arrested later that day when a deputy with the Sumner County Sheriff’s Office stopped him for a traffic violation.
Beall commended the Sumner County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
District of Kansas U.S. Attorney Collects $6.1 Million in Civil and Criminal ActionsRead the Press Release
TOPEKA, KAN. - U.S. Attorney Tom Beall announced today that the District of Kansas collected more than $6.1 million in criminal cases and civil actions in federal fiscal year 2016. Of this amount, $3.7 million was collected in criminal actions and $2.4 million was collected in civil actions.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Indictment: Topeka Man Had a Hand in Two Armed RobberiesRead the Press Release
TOPEKA, KAN. – A grand jury Wednesday returned federal charges against a Topeka man in two armed robberies, one of which ended in a police officer being shot, U.S. Tom Beall said.
Jermaine Tyrell Patton, 28, Topeka, Kan., is charged with two counts of aiding and abetting commercial robbery and two counts of aiding and abetting the brandishing of a firearm during a robbery
The indictment alleges Patton took part in an Oct. 31, 2016, robbery at Goose Express, 2901 S.E. Freemont, and a Nov. 5, 2016, robbery at Oakmart Convenience Store, 2518 N.E. Seward.
Patton and another man, Christopher Curtis Harris, 29, Topeka, were arrested following the Nov. 5 robbery. Harris was charged in Shawnee County District Court with shooting Topeka Police Detective Brian Hill when Hill tried to arrest him.
If convicted, Patton faces a penalty of not less than seven years in federal prison on each of the firearm counts and up to 20 years on each of the robbery counts. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER GRAND JURY INDICTMENTS
Michael J. Skladzien, 53, owner of S&S Floor Maintenance in Wichita, Kan., is charged with failing to pay more than $250,000 in taxes he withheld from employees’ wages. The crime is alleged to have occurred from 2010 to 2013 in Sedgwick County, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each of 11 counts. The Internal Revenue Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Patrick A. Scott, 32, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred Nov. 17, 2016, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Dustin Slinkard is prosecuting.
Quaton A. Grover, 38, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oc. 28, 2016, 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 Dustin Slinkard is prosecuting.
Alvin Acevedo, 27, and Yesena Collazo, 31, are charged with one count of possession with intent to distribute heroin. The crime is alleged to have occurred Nov. 14, 206 in Geary County, Kan.
If convicted, they face 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 Skipper Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federally Licensed Firearms Dealer Sentenced to Six Months in PrisonRead the Press Release
WICHITA, KAN. - A federally licensed firearms dealer from Parsons, Kan., was sentenced Wednesday to six months in prison followed by a year on probation for knowingly selling a firearm to a convicted felon, U.S. Attorney Tom Beall said.
Charles A. Black, 36, Parsons, Kan., pleaded guilty to one count of selling a firearm to a convicted felon. In his plea, Black admitted the crime occurred while he owned Triple B Sporting Goods, 2530 Main Street in Parsons. Black arranged for a man who Black had known since they were teenagers to buy a gun even though Black knew the man was a convicted felon. Black allowed the convicted felon to use another man’s identity in order to pass a background check and purchase a Keltec 9 mm pistol.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case.
Woman Who Owned Business in Basehor Sentenced for Not Paying Employment TaxesRead the Press Release
TOPEKA, KAN. - A woman who owned a home health care business in Basehor, Kan., was sentenced Tuesday to a year and a day in custody for failing to pay more than $856,000 in federal taxes, U.S. Attorney Tom Beall said.
Elizabeth Lucero, 53, Basehor, Kan., pleaded guilty to one count of willful failure to collect or pay over employment tax. In her plea, she admitted the crime occurred while she owned Sunshine Home Health Care in Basehor. The company had 65 to 70 employees and 1,400 patients.
From 2007 to 2011, Lucero’s company withheld payments from employee’s paychecks including federal income taxes, Medicare and Social Security taxes. Even though the company was growing and profitable, it made no payments to the Internal Revenue Service as required. Furthermore, against her accountant’s advice, Lucero had the company pay for hundreds of thousands of dollars of her personal expenses, including cash withdrawals at casinos for gambling and a $50,000 Cadillac Escalade.
In her plea, Lucero agreed to pay restitution of $856,784.
Beall commended the Internal Revenue Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Wichita Massage Parlor Owner Pleads Guilty in Sex Trafficking CaseRead the Press Release
WICHITA, KAN. – The owner of a Wichita massage parlor was sentenced Monday to two years supervised release for harboring a Chinese woman who worked as a prostitute, U.S. Attorney Tom Beall said.
The defendant agreed to forfeit more than $32,000 in cash and a 2004 Honda Element. In addition, the judge imposed a $52,000 money judgment.
Samir F. Elias, 61, Wichita, Kan., pleaded guilty to one count of harboring an alien for financial gain and one count of importation of an alien for prostitution. In his plea, he admitted the crimes occurred while he was the owner of GiGi’s Elite Massage, which operated at 357 N. Hillside in Wichita after moving from a previous location at 6611 E. Central.
Elias employed a Chinese woman with the initials F.Y. He was aware that the woman, who was not lawfully in the United States, engaged in the sale of sexual relations at the massage parlor. He personally reviewed online forums discussing the sale of sexual relations at his business. He harbored her at his residence near Maple and 119th West in Wichita, driving her to work and home again. He collected money from her he knew to be the proceeds of prostitution.
An undercover vice detective with the Wichita Police Department arrested the woman after she offered to perform sexual services during a massage.
Beall commended the Wichita Police Department, Homeland Security Investigations (HSI) and Assistant U.S. Attorney Jason Hart for their work on the case.
Southwest Kansas Couple Plead Guilty to Money LaunderingRead the Press Release
WICHITA, KAN. – A couple from southwest Kansas pleaded guilty Monday to a federal money laundering charge, U.S. Attorney Tom Beall said.
George Enns, 70, and his wife, Agatha Enns, 68, both of Meade, Kan., pleaded guilty to one count of money laundering conspiracy.
In their plea, the defendants admitted:
- At least $1.6 million in cash and $5.2 million in third-party checks was deposited into a joint account the defendants held at Plains State Bank in Plains, Kan.
- The defendants knew the funds in the account were the proceeds of unlawful activity although they did not know -- or do business with -- the individuals whose names were on the third-party checks
- The defendants did not use the account at Plains State Bank for their own business and personal transactions. They had accounts at other banks.
- The account at Plains State Bank was used for the deposit of cash and checks that George Enns received during his trips to Mexico. He carried the money into the United States without reporting the funds at the border.
- Funds in the account at Plains State Bank were transferred out of state to purchase genetically modified corn seed. The seed was shipped to the border where the corn was transported into Mexico at the direction of George Enns.
- This process is called trade based money laundering.
Sentencing is set for Feb. 27. The government is recommending three years on probation and a money judgment in an amount to be set by the judge.
Beall commended the Drug Enforcement Administration, the Federal Deposit Insurance Corporation, the Internal Revenue Service and Assistant U.S. Attorney Debra Barnett for their work on the case.
Former Bank Employee in Great Bend Pleads Guilty to Embezzling More Than $73,600Read the Press Release
KANSAS CITY, KAN. - A former employee of a bank in Great Bend pleaded guilty Monday to stealing more than $73,600 from the bank, U.S. Attorney Tom Beall said.
Kaden Herman, 19, Great Bend, Kan., pleaded guilty to one count of embezzlement by a bank employee. In his plea, he admitted he was working for Landmark National Bank in Great Bend, Kan., in May 2016 when the crime occurred. Herman gained access to a key and code that he used to open an ATM at a branch at 1623 Main Street in Great Bend and remove the cash.
When questioned, Herman denied involvement, but witnesses said they saw him when he took the key in to be duplicated. Investigators served a search warrant at his home and found the money.
Sentencing is set for Feb. 27. The government has agreed to recommend three years supervised release. Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Indictment: Couple Operated Moonshine Still in NewtonRead the Press Release
WICHITA, KAN. – A Newton couple were indicted in federal court here Tuesday on charges of operating a moonshine still in the basement of their home, U.S. Attorney Tom Beall said.
Ryan Penner, 41, and Jennifer Penner, 37, both of Newton, were charged with one count of possession of an unregistered still, one count of unlawful production of distilled spirits, and one count of failing to be bonded as a distiller.
The indictment alleges the Penners produced moonshine, which is illegal liquor on which federal and state excise taxes have not been paid.
The indictment alleges the investigation began in August when the Newton Police Department learned the defendants were producing and selling moonshine from their home in the 1000 block of E. 7th in Newton. Undercover officers made several purchases. A quart of moonshine typically sold for $20. Police served a search warrant at the home and seized a still built around a 15.5-gallon beer keg with metal legs and copper tubing.
If convicted, they face up to five years in federal prison and a fine up to $250,000. The Newton Police Department, the Bureau of Alcohol, Tobacco, and Firearms and Explosives and the Kansas Alcoholic Beverage Control investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER GRAND JURY INDICTMENTS
Lori A. Spaulding, 53, Augusta, Kan., a former payroll manager at Spirit AeroSystems, is charged with one count of wire fraud. The indictment alleges she made false claims to the company for tuition reimbursement and pay for unused time off.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jason P. Briscoe, 39, Salina, Kan., and Jamie L. Husley, 38, Salina, Kan., are charged with one count of unlawful possession of a firearm in furtherance of drug trafficking (count one), one count of unlawful possession of a firearm following a felony conviction (count two), one count of possession with intent to distribute methamphetamine (count three) and one count of unlawful possession of a firearm with serial number removed (count four). The crimes are alleged to have occurred Nov. 18, 2016, in Smolan, Kan.
Upon conviction the crimes carry the following penalties:
Count one: Up to life in prison and a fine up to $250,000.
Count two: Up to 10 years and a fine up to $250,000.
Count three: Up to 20 years and a fine up to $250,000.
Count four: Up to five years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Gary W. Yenzer, 34, Derby, Kan., is charged with one count of theft by a mail employee (count one), one count of possession of stolen gift cards (count two), and one count of aggravated identity theft (count three). The crimes are alleged to have occurred in September 2016 in Sedgwick County, Kan. While the defendant was a rural mail carrier for the U.S. Postal Service.
If convicted, he faces the following penalties
Count one: up to five years in federal prison and a fine up to $250,000.
Count two: Up to 10 years and a fine up to $250,000.
Count three: A mandatory consecutive two years and a fine up to $250,000.
The U.S. Postal Service-Office of Inspector 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.
U.S. Attorney Tom Beall to Host Diversity Dialogue with Law EnforcementRead the Press Release
WICHITA, KAN. – U.S. Attorney Tom Beall will open a discussion Tuesday in Wichita with local law enforcement agencies on recruiting, hiring and retaining law enforcement officers to better reflect the broad diversity of the communities they serve.
The Diversity Dialogue in Wichita will be part of a national initiative by the Justice Department’s Civil Rights Division and the U.S. Equal Employment Commission (EEOC). The objectives are outlined in an October report called, “Advancing Diversity in Law Enforcement. “The report, which can be accessed here, examines barriers as well as promising practices for advancing diversity in law enforcement.
“We must continue to review our efforts to promote diversity and share what we have learned so far,” Beall said. “Identifying the barriers we face and generating new ideas for cultivating diversity among law enforcement will help strengthen trust and improve policing.”
Michael Birzer, Professor of Criminal Justice and Director of the School of Community Affairs at Wichita State University, will serve as moderator. Topics will include: Barriers to diversity, recruitment, hiring and retention.
Members of the media are invited to talk to key participants starting a half hour before the session and to cover opening remarks. The rest of the meeting will be open only to registered participants.
Event: Diversity Dialogue
Opening Remarks: 1 p.m. Tuesday, Dec. 6, 2016.
Where: Room 180, Eugene Hughes Metropolitan Complex. 5015 E. 29th North, Wichita, Kan.
Physician’s Assistant Pleads Guilty to Violating Federal Food, Drug and Cosmetic ActRead the Press Release
TOPEKA, KAN. – A physician’s assistant who provided aesthetic services including Botox injections to clients in Garden City and Scott City pleaded guilty Thursday to violating the federal Food, Drug and Cosmetic Act, U.S. Attorney Tom Beall said.
Joel Erskin, 53, Garden City, Kan. pleaded guilty to one count of receiving and dispensing misbranded drugs. In his plea, he admitted the crimes occurred while he owned and operated Renovo Medical, LLC, also known as University Medical. Erskin purchased cheaper versions of Botox® and Juvederm® from Canadian pharmacies. The Botox he purchased was misbranded and failed to meet labeling requirements. The Juvederm was adulterated and not approved for distribution in the United States.
Erskin did not inform his clients that the drugs were purchased from Canada and did not meet federal standards.
Sentencing is set for Dec. 20. He faces a penalty of up to a year imprisonment and a fine up to $100,000.
Beall commended the Food and Drug Administration’s Office of Criminal Investigation and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Former Engineer for Wyandotte Unified Government Indicted on Federal Bribery ChargeRead the Press Release
KANSAS CITY, KAN. – A federal indictment was unsealed today charging a former staff engineer for the Unified Government of Wyandotte County and Kansas City, Kan., with taking bribes, U.S. Attorney Tom Beall said.
Willie D. Jones, 58, Kansas City, Kan., is charged with three counts of accepting bribes and five counts of money laundering.
The indictment alleged Jones accepted three bribes -- $6,740, $5,530 and $5,100 – from an individual who owned a company that obtained contracts to do street repairs for the Unified Government. It is alleged Jones routed the bribe money through his bank account and an account belonging to Paradise Missionary Baptist Church of Kansas City, where Jones was a minister.
If convicted, he faces up to 10 years in prison and a fine up to $250,000 on each bribery count, and up to 20 years and a fine up to$250,000 on each money laundering count. The FBI investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Kansas Men Plead Guilty in Federal Hate Crime Against Somali MenRead the Press Release
WASHINGTON – Armando Sotelo, 24, pleaded guilty today to a hate crime offense for his role in a June 19, 2015, assault of a black Somali man in Dodge City, Kansas. Omar Cantero Martinez, 32, also pleaded guilty today to providing perjured testimony during a hate crimes prosecution arising from the same assault.
Sotelo pleaded guilty in the District of Kansas to one count of a hate crime violation based on race and national origin, while Martinez pleaded guilty to one count of perjury for providing materially false testimony during the October 2016 federal criminal jury trial related to the hate crime.
“Hate violence not only harms individuals but also threatens the diversity of our society and the well-being of our communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “In this case, Sotelo attacked the victim because of the color of his skin and his country of origin, inflicting bodily injury during the assault. The Justice Department will continue to vigorously prosecute hate crimes so that all people can live their lives with the security, protection and freedom they deserve.”
During Sotelo’s plea hearing, he admitted that he assaulted the victim, identified as M.H.D., because of M.H.D.’s race and national origin. Sotelo admitted that he, with the assistance of two other men, approached M.H.D., who is black and from Somalia, while M.H.D. was sitting with two other Somali men on a bench outside the African Market. The defendant approached the bench from one side, while the two other men approached the bench from the other. Sotelo and the other men all yelled racial and anti-Somali slurs at M.H.D. and at the two other Somalis on the bench. The defendant then punched M.H.D. in the head without any justification, causing M.H.D. bodily injury. Following the assault, Sotelo fled the scene and directed another person to wash his clothing, which was bloody from the assault.
During his plea hearing, Martinez admitted that on the night of June 19, 2015, he had used a broken glass bottle to stab victim S.A.M. and slash victim A.M.A. without justification. Martinez also admitted that racial and anti-Somali slurs were used during the attack and that he and Sotelo instigated the attack. He further admitted that he provided false testimony about the incident during a federal jury trial in which he and Sotelo were charged with hate crimes offenses for the attack, that he knew his testimony was false at the time that he gave it and that his false testimony was material to the hate crimes charges.
Sotelo faces a maximum sentence of 10 years in prison and Martinez faces a maximum sentence of five years in prison. Sentencing for both defendants is scheduled for Feb. 22, 2017, and they will remain in custody until then.
This case was investigated by the FBI’s Garden City Resident Agency with assistance from the Dodge City Police and the Ford County, Kansas, Sheriff’s Departments. The case is being prosecuted by Trial Attorney Risa Berkower and Special Litigation Counsel Jared Fishman of the Civil Rights Division’s Criminal Section with assistance from Assistant U.S. Attorney Mona Furst of the District of Kansas.
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Topeka Woman Pleads Guilty to Health Care Fraud Involving Developmentally Disabled AdultsRead the Press Release
TOPEKA, KAN. – A Topeka woman has pleaded guilty to billing Medicaid for services she did not provide to developmentally disabled adult patients, U.S. Attorney Tom Beall and Kansas Attorney General Derek Schmidt said Tuesday.
Kristina Hansel, 45, Topeka, Kan., pleaded guilty Nov. 28 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:
- Billing Medicaid for services not provided.
- Providing false and fraudulent documentation, or no documentation at all.
- Making false and fraudulent statements to obtain and renew her license.
- 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.
Sentencing is set for April 17, 2017. The parties have agreed to recommend 30 months in prison and restitution of more than $480,000.
The case was jointly investigated by federal and state authorities and prosecuted by the Kansas Attorney General’s Medicaid Fraud and Abuse Division. Assistant Attorney General Stefani Hepford of Schmidt’s office prosecuted the case against Hansel.
Kansas Tax Return Preparer Sentenced to Prison for Aggravated Identity Theft and Stealing Government FundsRead the Press Release
A Stillwell, Kansas tax return preparer was sentenced to 48 months in prison today for stealing his clients’ identities and federal income tax refunds falsely claimed in their names, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Thomas Beall for the District of Kansas.
According to documents filed with the court, Richard Drake used three of his clients’ personal identities to file false federal income tax returns that claimed inflated refunds. As part of his scheme, Drake prepared accurate federal income tax returns for these clients, which he provided to them but did not file with the Internal Revenue Service (IRS). He then had these clients make estimated tax payments to the IRS during the year. Once it was time to file on behalf of his clients, Drake filed false tax returns with the IRS that underreported his clients’ income and claimed false expenses in order to generate large income tax refunds which he directed to accounts under his control. In total, Drake stole and converted to his own use $2,432,147.
Drake pleaded guilty on June 6 to one count of aggravated identity theft and one count of theft of government funds. As part of his plea agreement, Drake agreed to serve 48 months in prison, followed by three years of supervised release and to pay restitution in the amount of $2,432,147 to the IRS, and $98,087 to the Kansas Department of Revenue.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beall commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ryan Raybould of the Tax Division and Assistant U.S. Attorney Tris Hunt, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kansas Tax Return Preparer Sentenced to PrisonRead the Press Release
WASHINGTON – A Stillwell, Kansas tax return preparer was sentenced to 48 months in prison today for stealing his clients’ identities and federal income tax refunds falsely claimed in their names, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Thomas Beall for the District of Kansas.
According to documents filed with the court, Richard Drake used three of his clients’ personal identities to file false federal income tax returns that claimed inflated refunds. As part of his scheme, Drake prepared accurate federal income tax returns for these clients, which he provided to them but did not file with the Internal Revenue Service (IRS). He then had these clients make estimated tax payments to the IRS during the year. Once it was time to file on behalf of his clients, Drake filed false tax returns with the IRS that underreported his clients’ income and claimed false expenses in order to generate large income tax refunds which he directed to accounts under his control. In total, Drake stole and converted to his own use $2,432,147.
Drake pleaded guilty on June 6 to one count of aggravated identity theft and one count of theft of government funds. As part of his plea agreement, Drake agreed to serve 48 months in prison, followed by three years of supervised release and to pay restitution in the amount of $2,432,147 to the IRS, and $98,087 to the Kansas Department of Revenue.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beall commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ryan Raybould of the Tax Division and Assistant U.S. Attorney Tris Hunt, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Kansas Men Plead Guilty for Roles in Federal Hate Crime Against Black Somali MenRead the Press Release
Armando Sotelo, 24, pleaded guilty today to a hate crime offense for his role in a June 19, 2015, assault of a black Somali man in Dodge City, Kansas. Omar Cantero Martinez, 32, also pleaded guilty today to providing perjured testimony during a hate crimes prosecution arising from the same assault.
Sotelo pleaded guilty in the District of Kansas to one count of a hate crime violation based on race and national origin, while Martinez pleaded guilty to one count of perjury for providing materially false testimony during the October 2016 federal criminal jury trial related to the hate crime.
“Hate violence not only harms individuals but also threatens the diversity of our society and the well-being of our communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “In this case, Sotelo attacked the victim because of the color of his skin and his country of origin, inflicting bodily injury during the assault. The Justice Department will continue to vigorously prosecute hate crimes so that all people can live their lives with the security, protection and freedom they deserve.”
During Sotelo’s plea hearing, he admitted that he assaulted the victim, identified as M.H.D., because of M.H.D.’s race and national origin. Sotelo admitted that he, with the assistance of two other men, approached M.H.D., who is black and from Somalia, while M.H.D. was sitting with two other Somali men on a bench outside the African Market. The defendant approached the bench from one side, while the two other men approached the bench from the other. Sotelo and the other men all yelled racial and anti-Somali slurs at M.H.D. and at the two other Somalis on the bench. The defendant then punched M.H.D. in the head without any justification, causing M.H.D. bodily injury. Following the assault, Sotelo fled the scene and directed another person to wash his clothing, which was bloody from the assault.
During his plea hearing, Martinez admitted that on the night of June 19, 2015, he had used a broken glass bottle to stab victim S.A.M. and slash victim A.M.A. without justification. Martinez also admitted that racial and anti-Somali slurs were used during the attack and that he and Sotelo instigated the attack. He further admitted that he provided false testimony about the incident during a federal jury trial in which he and Sotelo were charged with hate crimes offenses for the attack, that he knew his testimony was false at the time that he gave it and that his false testimony was material to the hate crimes charges.
Sotelo faces a maximum sentence of 10 years in prison and Martinez faces a maximum sentence of five years in prison. Sentencing for both defendants is scheduled for Feb. 22, 2017, and they will remain in custody until then.
This case was investigated by the FBI’s Garden City Resident Agency with assistance from the Dodge City Police and the Ford County, Kansas, Sheriff’s Departments. The case is being prosecuted by Trial Attorney Risa Berkower and Special Litigation Counsel Jared Fishman of the Civil Rights Division’s Criminal Section with assistance from Assistant U.S. Attorney Mona Furst of the District of Kansas.
Former Army Explosives Expert Pleads Guilty to Unlawful Possession of Explosive DevicesRead the Press Release
KANSAS CITY, KAN. – A former Army explosive ordinance disposal technician pleaded guilty Tuesday in federal court to unlawful possession of explosive devices, U.S. Attorney Tom Beall said.
John A. Panchalk, 42, Overland Park, Kan., pleaded guilty to possessing two M-67 fragmentation grenades that were not registered to him in the National Firearms Registration and Transfer Record.
The investigation began in May when police were called to the Parkville Self Storage Facility in Parkville, Mo. They found several trailers and vehicles had been vandalized. In and around one trailer, they found ammunition canisters, rocket fins, blasting caps, C-4 explosive and military grenade simulators. They determined Panchalk was the owner of the trailer.
When investigators contacted Panchalk at home in Overland Park, he was evasive when they asked him about the contents of the trailer. When they executed a search warrant at Panchalk’s home, they found 38 pounds of C-4 explosive, detonation cord, blasting caps, grenade simulators, incendiary devices and the two M-67 fragmentation grenades.
Sentencing will be set for a later date. The government has agreed to recommend a sentence of probation.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Parkville, Mo., Police Department, the Overland Park Police Department and Assistant U.S. Attorney Terra Morehead for their work on the case.
Defendant Who Spent Six Years on the Run Finally Sentenced to 27 Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. – A drug trafficker who was a fugitive from justice for six years was sentenced Friday to 27 years in federal prison, U.S. Attorney Tom Beall said. The defendant also was ordered to forfeit more $13 million in proceeds from his crimes.
Yehia Hassen, 36, formerly of Richmond, Va., pleaded guilty to one count of conspiracy to distribute cocaine and marijuana, and one count of attempted money laundering. In his plea, he admitted he was part of a large drug trafficking organization that operated in Kansas City, Kan. Drugs smuggled from Mexico were transported to Kansas City and then to Hassen in Richmond.
In all, Hassen received more than 100 kilograms of cocaine shipped to him from Kansas City. The organization used commercial and personal vehicles to ship drugs to Kansas City and transport cash to Mexico to pay for drugs.
While Hassen was on release pending sentencing, he absconded. He used false identities to remain free until he was arrested in the Republic of Cyprus on April 28, 2016.
Beall commended the agencies and individuals who took part in Operation Load Runner, including the Drug Enforcement Administration, the U.S. Marshals Service, Assistant U.S. Attorney David Zabel and Assistant U.S. Attorney Tris Hunt.
Retired Wichita Police Lt. Sentenced for Embezzlement, Mail FraudRead the Press Release
WICHITA, KAN. - A retired Wichita police lieutenant Wednesday was sentenced to two years on probation for filing false documents so he would be paid for providing armed engagement training for law enforcement officers, U.S. Attorney Tom Beall said. He also was ordered to pay $56,400 in restitution.
Kevin P. Vaughn, 52, Wichita, Kan., who retired in March 2015 after 28 years with the Wichita Police Department, pleaded guilty to one count of embezzlement of public funds and one count of mail fraud.
In his plea, Vaughn admitted he falsified reports to make it appear his company, Red Mist Tactical, had completed all of 15 eight-hour classes as the company’s contract required. The money for the training came from a grant by the U.S. Department of Homeland Security/Federal Emergency Management Agency (DHS/FEMA) to the Kansas Highway Patrol and the North Central Regional Planning Commission.
Vaughn admitted he:
- Falsely reported conducting training in McPherson, Kan., on May 27 and May 28, 2015. In fact, the training sessions took place on June 3 and 4, 2015, after the deadline in the contract for the training to be completed. He forged officers’ signatures on sign-up sheets.
- Falsely reported conducting eight hours of training on May 22, 2015, during the Wichita Police Department Ladies Range Day. In fact, the training lasted four hours and it was not approved by the police department.
- Falsely reported offering training in Sumner County on April 27 and May 1, 2015. In fact, there was no training on those days.
- Falsely reported offering training in Sumner County on April 20, 21, 22, 23 and 24, 2015. In fact, there was no training on those days.
Beall commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
Kansas City, Kan., Woman Charged with Setting Fires as Diversion for ShopliftingRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., woman was charged in federal court Wednesday with setting fires as diversions while she was shoplifting at three separate grocery stores, U.S. Attorney Tom Beall said.
Tahmekah D. Henson, 40, Kansas City, Kan., is charged with three counts of arson. The fires are alleged to have been set at the following locations.
-- Save A Lot, 2815 State Avenue, Kansas City, Kan., Nov. 5, 2016.
-- Save A Lot, 2102 Metropolitan, Kansas City, Kan., Nov. 5, 2016.
-- Happy Foods, 5420 Leavenworth Road, Kansas City, Kan., Nov. 5, 2016.
Documents filed in the case allege Henson set fires in store aisles so she could leave the stores with shoplifted meats during the confusion. In each case there were customers and employees in the stores.
If convicted, she faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Jury Finds Former Labette Banker Guilty in Embezzlement CaseRead the Press Release
WICHITA, KAN. – A jury today found a former Labette, Kan., banker guilty on federal charges in an embezzlement case, U.S. Attorney Tom Beall said.
Keith L. Shaffer, 61, Altamont, Kan., was convicted on the following charges:
Count one: Misapplication of bank funds.
Count four: Wire fraud
Count five: Misappropriation of insurance funds
Counts six, seven and eight: Making a false statement on a federal tax return
Count two was dismissed before trial. He was acquitted on count three.
During trial, prosecutors presented evidence that while Shaffer was a bank employee he diverted more than $134,000 in commissions on sales of insurance belonging to the bank into his personal account. Shaffer was managing a bank subsidiary called Labette Insurance Company. He was a salaried employee of the bank and all commissions paid on sales by Labette Insurance belonged to the bank. As part of the scheme he submitted false information to the bank and to the Internal Revenue Service.
Sentencing is set for Feb. 6. He faces the following potential penalties:
Counts one: Up to 30 years in federal prison and a fine up to $1 million on each count.
Count four: Up to 20 years and a fine up to $250,000.
Count five: Up to 10 years and a fine up to $250,000.
Counts six, seven and eight: Up to three years and a fine up to $25,000 on each count.
Beall commended the Internal Revenue Service, FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.