District of Kansas

WICHITA, KAN. - A Eureka man pleaded guilty Monday to making counterfeit money by “washing” old bills, U.S. Attorney Barry Grissom said.

Rusty D. Banning, 35, Eureka, Kan., pleaded guilty to one count of counterfeiting. In his plea, he admitted that in May 2014 he manufactured counterfeit $50 bills by “washing” genuine bills of smaller denominations and using a computer and printer to print the image of a $50 bill on the “washed” bill.

Sentencing is set for May 27. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.

Grissom commended the U.S. Secret Service and Assistant U.S. Attorney Alan Metzger for their work on the case.

KANSAS CITY, KAN. – A Lawrence contractor and five other people have been charged with money laundering, bank fraud and harboring undocumented workers, said U.S. Attorney Barry Grissom. A federal indictment unsealed today alleges they were part of a scheme to convert more than $13 million in payroll checks into cash to pay crews of undocumented workers installing drywall in the Kansas City metro area.

“The indictment alleges the money flowed through an illegal pipeline,” said U.S. Attorney Barry Grissom. “At one end were contractors who wanted cheap labor. At the other end were undocumented workers who needed a job.”

Charged in the case are:

• Keith L. Countess, 55, Lawrence, Kan., owner of Plaster Masters, L.C., a drywall subcontractor for commercial and residential construction projects. The company is located at 619 N. 2nd in Lawrence.
• Marcos Lane Stubbs, 44, who is alleged to have devised the scheme to enable drywall subcontractors to use undocumented workers.
• Luis Felipe Guerrero-Guerrero, 26, who is alleged to have managed crews of workers installing drywall.
• Jose Felipe Hernandez-Calvillo, 39, who is alleged to have managed a crew of workers installing drywall.
• Mauro Papalotzi, 34, who is alleged to have managed crews of workers installing drywall.
• Isaac Gallegos, 35, who is alleged to have allowed the scheme to be operated out of his Boost Mobile telephone store. It was located in the  1300 block of Santa Fe in Olathe, Kan.

The indictment alleges the scheme revolved around another man – Jose R. Torres, 51 – who was charged and convicted in a separate case. Torres pleaded guilty to one count of harboring undocumented workers and one count of operating an unlicensed money transmitting business. He is awaiting sentencing.

The indictment alleges Gallegos and Stubbs first explained to Torres how the scheme would work and how he could make money by becoming a financial intermediary between drywall subcontractors and drywall construction crews made up primarily of undocumented workers. They told Torres that in order to pay undocumented workers someone had to serve as a financial conduit between the subcontractors and the workers. The subcontractors would contract directly with drywall crews but would use Torres as a financial intermediary.

The scheme involved Torres holding himself out as a drywall subcontractor while in fact his role was merely to receive checks from drywall construction crews, deposit the checks into his own accounts, withdraw cash from his accounts and pay the crew leaders, who in turn paid themselves and the members of the crews. Torres kept 5 percent as his fee.

To get the venture started, Torres borrowed $1,400 from Gallegos, who allowed him to work out of Gallego’s Boost Mobile store in Olathe. Drywall crews were paid weekly. The subcontractor made checks payable to “Jose R. Torres Drywall.” The checks were taken to Torres, usually at the Boost Mobile store. He would deposit the checks. Later, usually on Saturday mornings, he would withdraw cash from his accounts. He would put the cash into envelopes with the crew leaders’ names on them. The crew leaders would pick them up, usually at the Boost Mobile store.

Between October 2012 and June 2014, checks totaling about $13.2 million were deposited into Torres’ accounts at Bank of America and Wells Fargo.

Upon conviction, the crimes carry the following penalties:

• Conspiracy to harbor undocumented workers: A maximum penalty of five years and a fine up to $250,000.
• Harboring undocumented workers: A maximum penalty of five years and a fine up to $250,000 on each count.
• Conspiracy to commit money laundering: A maximum penalty of five years and a fine up to $250,000 on each count.
• Money laundering: A maximum penalty of 20 years and a fine up to $500,000 on each count.
• Conspiracy to commit bank fraud: A maximum penalty of five years and a fine up to $250,000 on each count.
• Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.

Homeland Security Investigations (HSI) and the Internal Revenue Service – Criminal Investigation investigated. Assistant U.S. Attorney Jabari Wamble and Assistant U.S. Attorney Brent Anderson are prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

KANSAS CITY, KAN. – A Kansas City, Kan., woman has been indicted on charges of preparing false federal income tax returns, U.S. Attorney Barry Grissom said today.

Prayshana Washington, 27, Kansas City, Kan., was indicted Thursday in U.S. District Court in Kansas City, Kan., on 21 counts of aiding and assisting in the preparation of federal income tax returns containing false information.

The indictment cites tax returns filed for 15 individuals for tax years 2011 and 2012 containing false information on wages, dependents, and education credits and American Opportunity Credits that help pay college expenses. The Internal Revenue Service – Criminal Investigation investigated. Assistant U.S. Attorney Scott Rask and Matthew Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, are prosecuting.

 

OTHER INDICTMENTS

Charles Leonhardt Haupt, 31, La Cygne, Kan., was indicted Thursday on one count of conspiracy to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in February and March 2015 in Linn County, Kan.

If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the methamphetamine charge, not less than five years (consecutive to other sentences) and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on each of the other two counts. The Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Jonathan Luis Martin, 30, of Franklin County, Kan., and Charles Bradley Grissom, 26, of Franklin County, Kan., are charged in a superseding indictment with one count of unlawful possession of a pipe bomb. In addition, Martin is charged with one count of unlawful possession of a sawed off shotgun and one count of unlawful possession of a firearm following a felony conviction. In addition, Grissom is charged with one additional count of unlawfully making a pipe bomb and one count of unlawful possession of a destructive device (pipe bomb) after a felony conviction. The crimes are alleged to have occurred in August and December 2014 in Franklin County, Kan.

If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

In a separate superseding indictment, Charles Bradley Grissom, 26, of Franklin County, Kan., is charged with one count of distributing methamphetamine, one count of unlawfully possessing firearms in furtherance of drug trafficking, one count of unlawfully possessing a firearm while he was a user on methamphetamine, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in May and August 2014 in Franklin County, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the methamphetamine charge, not less than five years and a fine up to $250,000 on the charge of unlawful possession of firearms in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on each of the other counts. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Petsami Phommaseng, 34, Lawrence, Kan., is charged in a superseding indictment with two counts of unlawful possession of a firearm in furtherance of drug trafficking and two counts of unlawful possession of a firearm by a user of methamphetamine. Co-defendant Susan Khampannha, Lawrence, Kan., is charged with unlawfully allowing a residence in the 2500 block of Ousdahl Road in Lawrence to be used for distributing methamphetamine. The crimes are alleged to have occurred in 2014 and 2015 in Lawrence.

Upon conviction, the crimes carry the following penalties:

          Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years in federal prison and a fine up to $250,000.

          Unlawful possession of a firearm by a user of methamphetamine: A maximum penalty of 10 years and a fine up to $250,000.

          Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $250,000.

 

The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Adam Davis, 39, Parsons, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 24, 2014, in Parsons, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.                                                                                                                                                                                                  

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

TOPEKA, KAN. - A Topeka man pleaded no contest Monday to federal armed robbery charges, U.S. Attorney Barry Grissom said.

Henry Earl Sirvira, 46, Topeka, Kan., entered a plea of nolo contendere to two counts of commercial robbery and one count of brandishing a firearm during a robbery. During the plea hearing, prosecutors told the judge that on July 29, 2013, Sirvira and co-defendant Quartez Norwood robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka. Sirvira pointed a handgun at an employee and threatened to kill him unless he opened the safe.

On Aug. 3, 2013, Sirvira and Norwood robbed the Family Dollar Store at 2616 S.E. 6th Street in Topeka. Norwood pointed a gun at the clerk while Sirvira assaulted a patron in another part of the store.

Sentencing is set for June 1. Both parties have agreed to recommend a sentence of 11 years in federal prison.

Co-defendants include:

Quartez Norwood, who was sentenced to 180 months.

Henry Lavelle Davis, who was sentenced to 84 months.

Robert Wayne Redmond, who was sentenced to 60 months.

Xavier Leron Sims, who was sentenced to 35 months.

Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.

TOPEKA, KAN. - A Topeka business owner who pleaded guilty to writing more than 5,000 insufficient fund checks in a check kiting scheme was sentenced Monday to 37 months in federal prison, U.S. Attorney Barry Grissom said. The defendant was ordered to pay more than $538,000 in restitution.

John Charles Humpage, III, 49, Topeka, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted that in 2008 he defrauded the Educational Credit Union, Kaw Valley State Bank and Alliance Bank. Humpage did business under various names including Humpco, Inc., Crescent Limousine, Yellow Cab of Topeka and Wire and Glass Lease, LLC. He carried out a scheme to defraud the banks by exchanging and cross-depositing insufficiently funded checks between two or more of his bank accounts. In that manner, he generated artificially inflated account balances. The check kiting scheme utilized bank system Afloat@ periods for purposes of creating artificially enhanced bank account balances.

From May through August 2008 he exchanged and cross deposited more than 5,000 insufficient checks and created in excess of $78 million in aggregate deposit amounts. Those deposits falsely inflated his bank account balances by more than $600,000.

Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for his work on the case.

KANSAS CITY, KAN. - A Leavenworth man pleaded guilty Wednesday to fraudulently collecting more than $46,000 in government benefits, U.S. Attorney Barry Grissom said.

Michael James Munsterman, 42, Leavenworth, Kan., pleaded guilty to one count of theft of government funds. In his plea, he admitted he received Supplemental Security Income, food stamps and Medicaid even though he did not qualify for those benefits. In April 2011 he applied for SSI benefits claiming that he had a drug-induced heart condition that prevented him from working. He did not reveal to the government that he owned and operated a heating and cooling company and received substantial income from the business while he was receiving benefits. He also admitted that he concealed from the federal government his financial resources that far exceeded the eligibility criteria of the aforementioned needs-based programs.

He fraudulently received a total of approximately $46,367 in government funds.

Sentencing is set for June 16, 2015. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Pursuant to the plea agreement, Munsterman must also pay restitution to the victim-agencies.  Grissom commended the Social Security Administration’s Office of Inspector General and Special Assistant U.S. Attorney Trey Alford for their work on the case.

TOPEKA, KAN. - A Lawrence woman was sentenced Wednesday to 24 months in federal prison for embezzlement and ordered to pay $837,000 in restitution to her former employer, U.S. Attorney Barry Grissom said.

Sharon Ann Holladay, 58, Lawrence, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred while she worked as an officer manager for Westheffer Company, a Lawrence business that manufactures and sells agricultural chemical spray equipment.

Holladay used her access to the company’s financial system to transfer money from the operations account to a petty cash fund she controlled. She also used her access to the payroll system to give herself unauthorized bonuses and commissions. In addition, she made unauthorized purchases on the company’s credit card.

Grissom commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.

TOPEKA, KAN. – Three people were indicted Wednesday on federal charges of kidnapping and killing a Junction City woman, U.S. Attorney Barry Grissom said. Grissom said his office is prosecuting the case jointly with the Geary County Attorney in federal court.

The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan.

Charged with one count of kidnapping resulting in death are:

                  Larry L. Anderson, 26, who is being held in the Geary County Jail.

                  Marryssa M. Middleton, 23, who is being held in the Geary County Jail.

                  Drexel A. Woody, 24, who is being held in the Geary County Jail.

The indictment alleges that on Feb. 7, 2014, the defendants kidnapped the victim and held her on the Fort Riley military installation. While they were holding her they killed her.

If convicted, they face a maximum penalty of life in federal prison without parole. 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 and the FBI investigated. Assistant U.S. Attorney Jared Maag, Assistant U.S. Attorney Tony Mattivi and Geary County Attorney Steven Opat are prosecuting.

 

OTHER INDICTMENTS

Frederick L. Sanders, 43, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 30, 2015, in Shawnee County, Kan.

If convicted, he faces a maximum penalty of 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 Tony Mattivi is prosecuting.

 

Luis Guadalupe Leon-Aceves, 44, Cavroca, Mexico, is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 8, 2015, in Sedgwick 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 Michelle Jacobs is prosecuting.  

                                                                                                                                                                                                 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

 

KANSAS CITY, KAN. - The owner of an Overland Park hotel was sentenced Monday to 27 months in federal prison for employing undocumented workers, who were paid less than other employees, U.S. Attorney Barry Grissom said. Last month, the defendant’s wife was sentenced to 21 months in the same case.

“I hope Kansas business owners are listening,” said Grissom. “You can go to prison for knowingly employing undocumented workers. Violating federal law is not a good business strategy.”

Munir Ahmad Chaudary, 53, and his wife, Rhonda R. Bridge, 42, both of Overland Park, Kan., pleaded guilty to one count of conspiracy to harbor undocumented aliens for financial gain. In their pleas, they admitted employing undocumented workers at two hotels they owned: A Clarion Hotel at 7000 W. 108th in Overland Park, and a Clarion Hotel at 11828 NW Plaza Circle in Kansas City, Mo.

Chaudary and Bridge lowered their hotels’ operating costs and put themselves at a competitive advantage by not paying Social Security, Workers Compensation and unemployment insurance for the undocumented workers.

“The Chaudarys sought to game the system and gain an unfair business advantage over their legitimate competitors by hiring illegal aliens at cut-rate wages,” said Gary Hartwig, special agent in charge of HSI Chicago. “Homeland Security Investigations will continue to work with our federal, state, and local partners to keep the playing field level for all American business owners.”

“Employers who are covered by the Fair Labor Standards Act must pay minimum wages and overtime premiums to their employees. They must not be allowed to evade these provisions by hiring undocumented workers and paying them less than the statute requires,” said Ricky Robinson, Acting District Director of the Kansas City District Office of the Wage and Hour Division of the U.S. Department of Labor. “We will continue to enforce the FLSA without regard to whether an employee is documented or undocumented. Under the FLSA, the Department (or an employee) seeks back pay for hours an employee has actually worked, under laws that require payment for such work.”

According to court records, the investigation began in December 2011 when the U.S. Department of Homeland Security (DHS) and the Kansas Department of Revenue (KDOR) received information that the owners of the hotels were employing foreign nationals who were not lawfully present in the United States. In June 2012, an undercover agent posing as an undocumented worker got a job at the Overland Park Hotel. He was hired even though he told his employers he was not authorized to work in the United States.

In 2011 and 2012 the defendants filed false and fraudulent Quarterly Wage Reports and Unemployment Tax Returns with the Kansas Department of Labor in which they under-reported the number of employees at the Overland Park hotel, the amount of total wages paid and the amount of unemployment taxes due.

Chaudary is the final defendant to be sentenced in the case. Judith Vanzant, a hotel manager, and Syed Naqvi, a Pakistani native who worked as a desk clerk, already were sentenced.

The government also is seeking forfeiture of the proceeds of the crime. The judge will take up that issue at a later time.

Grissom commended Homeland Security Investigations (HSI), the Kansas Department of Revenue (KDOR), the Overland Park Police Department, the U.S. Department of Labor and Assistant U.S. Attorney Brent Anderson for their work on the case.

WICHITA, KAN. - The former recreation director for the City of Osawatomie is scheduled to appear in court this month on a federal indictment alleging he embezzled more than $125,000 from the city, U.S. Attorney Barry Grissom said Monday.

Ron Maring, 53, Osawatomie, Kan., is scheduled for an initial appearance March 27 in U.S. District Court in Wichita. He is charged with four counts of tax fraud and 10 counts of money laundering.

The indictment alleges that from 2008 to 2011 while Maring was director of the Osawatomie Recreation Commission he embezzled approximately $125,665. He wrote checks from the recreation commission’s account to himself and to American Legion Baseball. He converted the money for his own use and not for the use of the recreation commission or American Legion Baseball.

As part of the scheme, he persuaded recreation commission board members to sign blank checks, used his own signature as an endorsement, instructed a recreation commission employee to endorse checks and forged the name of recreation commission members.

The indictment alleges he failed to report the embezzled money as income on his 2008, 2009, 2010 and 2011 federal income taxes. The indictment also cites 10 dates in 2011 in which Maring deposited stolen funds into his personal account.

The Osawatomie Police Department, the Kansas Department of Revenue, Office of Special Investigation, and the Internal Revenue Service – Criminal Investigations investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

WICHITA, KAN. - A Wichita man pleaded guilty in federal court in Wichita Thursday to a robbery charge, U.S. Attorney Barry Grissom said.

Eric Emmanuel Dear, 23, Wichita, Kan., pleaded guilty to one count of commercial robbery. In his plea, he admitted that on July 27, 2014, he robbed the Dollar General Store at 2747 E. Boulevard Plaza in Wichita.

He entered the store about 10:25 a.m., approached the cash register and demanded money. He carried what appeared to be a handgun in his right hand. During the robbery, he touched the counter with his left hand. Fingerprints taken from the counter were matched to three fingers on his left hand. No firearm was recovered.

Sentencing is set for May 7. Both parties have agreed to recommend a sentence of 57 months in federal prison. Grissom commended the Wichita Police Department, the FBI and Assistant U.S. David Lind for their work on the case.

KANSAS CITY, KAN. – An Atchison man has been indicted on federal charges of kidnapping a child, U.S. Attorney Barry Grissom said today.

Marcas McGowan, 30, Atchison, Kan., was charged Wednesday in U.S. District Court in Kansas City, Kan., with one count of kidnapping a child, one count of discharging a firearm during the kidnapping, one count of unlawfully possessing a firearm following a felony conviction, and one count of unlawful possession of a firearm following a misdemeanor domestic violence conviction.

Assistant U.S. Attorney Scott Rask and Leavenworth County Attorney Todd Thompson will be prosecuting the case. Mr. Thompson has been designated as a Special Assistant U.S. Attorney.

“This is a very serious case and my office will be working closely with the Leavenworth County Attorney to see that it gets the attention it deserves,” U.S. Attorney Barry Grissom said.

“My office has always had a great working relationship with U.S. Attorney Barry Grissom and his staff, so I appreciate the opportunity to work with them to pursue this matter federally,” said Leavenworth County Attorney Todd Thompson. “My office always strives for what is in the best interest of the Leavenworth community, and will continue to do so through our collaboration with the U.S. Attorney’s office.”

The federal indictment alleges that on July 18, 2014, McGowan kidnapped a minor victim. He traveled from Kansas to Missouri and back to Kansas with the child.

Upon conviction, the crimes carry the following penalties:

     Kidnapping: Not less than 20 years and not more than life and a fine up to $250,000.

     Discharging a firearm in a crime of violence: Not less than 10 years and not more than life, consecutive to any other sentence, and a fine up to $250,000.

     Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.

     Unlawful possession of a firearm following a misdemeanor conviction for domestic violence: A maximum penalty of 10 years and a fine up to $250,000.

The Atchison Police Department, the Platte County (Mo.) Sheriff’s Office, the Weston (Mo.) Police Department, the Leavenworth Police Department, the Kansas Bureau of Investigation and the FBI investigated.

KANSAS CITY, KAN. – An investigation that began with a traffic stop in Utah led to a federal indictment in Kansas City, Kan., Wednesday charging five people with drug trafficking, U.S. Attorney Barry Grissom said.

Ana Claudia Rodriguez-Rodriguez, 39; Sergio Lopez, 41; Migel Lopez-Lopez, 22; Daniel Rivera, 32; and Andres Marquez, 22, are charged with one count of conspiracy to distribute methamphetamine.

According to court documents, Rodriguez-Rodriguez was stopped by the Utah Highway Patrol Jan. 21, 2015, driving a red 1991 Jeep Cherokee. Troopers found approximately 10 pounds of methamphetamine in the car. Investigators determined that she was headed to the Kansas City area to deliver the drugs. In Kansas City, Kan., officers set up a sting operation and arrested the other defendants when they attempted to take delivery of the drugs.

If convicted, they face a penalty of not less than 10 years and a fine up to $10 million. The Utah Highway Patrol and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.

 

OTHER INDICTMENTS

Derick Allen Spicer, 34, is charged with failing to register as required by the federal Sex Offender Registration and Notification Act. The crime is alleged to have occurred Dec. 12, 2014.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Kim Martin is prosecuting.

Andrew J. Denning, 23, Wichita, Kan., and Tyler W. Lewis, 22, Wichita, Kan., are charged with one count of distributing marijuana and one count each of unlawfully possessing a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Feb. 3, 2015, in Sedgwick County, Kan.

If convicted, they face a maximum penalty of five years in federal prison and a fine up to $250,000 on the marijuana count and a penalty of not less than five years on the gun charges. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

TOPEKA, KAN. - A father and son from Kansas who launched a global sales and supply network for smokable synthetic cannabinoids – also  called synthetic marijuana -- and other designer drugs were sentenced Tuesday to federal prison for violating the federal Food, Drug and Cosmetic Act, U.S. Attorney Barry Grissom said.

Clark Sloan, 55, Tonganoxie, Kan., was sentenced to 87 months in federal prison. His son, Jonathan Sloan, 34, Lawrence, Kan., was sentenced to 96 months in federal prison. In September 2014, they were convicted in a federal jury trial on 20 counts including one count of conspiracy, two counts of misbranding, 15 counts of mail fraud, one count of smuggling and one count of money laundering.

During trial, prosecutors presented evidence that the men conspired to manufacture and sell designer drugs, including a marijuana substitute called K2 that was named after the second-highest mountain in the world. The business, which began in a shop in Lawrence, Kan., grew to encompass a chain of suppliers, retailers, wholesalers and business associates with locations in Kansas, California, Massachusetts, New Jersey, Oregon, Nevada and Indiana, as well as in other nations including Argentina, Latvia, Germany, Lithuania, the United Kingdom, Ukraine, the Netherlands, Canada, Sweden, Singapore, Thailand and Uruguay. The defendants made at least $3.3 million from the sale of the drugs

Prosecutors presented evidence that Jonathan Sloan was co-owner of two businesses, Persephone's Journey, a retail store in Lawrence, Kan., and Bouncing Bear Botanicals, ostensibly a wholesaler of herbs and botanical products, with co-defendant Bradley Miller of Wichita, Kan. Bouncing Bear Botanicals was located in the basement of Persephone's Journey and then moved to a warehouse in Oskaloosa, Kan. Clark Sloan, who was Miller’s brother, developed and monitored the Web site for Bouncing Bear Botanicals and worked in marketing and Internet technologies.

Miller developed recipes for K2 and manufactured it. During trial, prosecutors presented evidence that:

• The defendants manufactured and distributed K2 as an "all natural product" but it contained synthetic chemicals called JWH Compounds that mimic the effects of the THC in marijuana. Their products also contained solvents, either the alcohol Everclear or acetone, as well as other additives.
•  They manufactured and sold at least four types of K2 products: Standard, Citron, Blonde and Summit, with Standard being the least potent and Summit being the most potent, depending on the amount of JWH Compounds that were mixed with herbs.
• The defendants manufactured the K2 without quality controls, resulting in inconsistent potencies. They intended K2 products to be smoked like marijuana by recreational drug users, but they falsely referred to K2 products as aromatic incense and falsely labeled them as "not for consumption."

“Consumers must always be aware that they put their health at risk when they buy drugs from unknown sources online and in stores,” said Catherine Hermsen, Special Agent in Charge, FDA’s Office of Criminal Investigations. “OCI is committed to working to protect the U.S. public health.”

Co-defendant Bradley Miller is set for sentencing March 16.

Grissom commended the Food and Drug Administration, Assistant U.S. Attorney Tanya Treadway and Assistant U.S. Attorney Tony Mattivi for their work on the case.

KANSAS CITY, KAN. - The co-owner of an Overland Park hotel was sentenced Tuesday to 21 months in federal prison for employing undocumented workers, who were paid less than other employees, U.S. Attorney Barry Grissom said. She also agreed to forfeit her interest two hotels and funds derived from the crime.

Rhonda R. Bridge, 42, and her husband, Munir Ahmad Chaudary, 53, both of Overland Park, Kan., pleaded guilty to one count of conspiracy to harbor undocumented aliens for personal gain. In their pleas, they admitted employing undocumented workers at two hotels they owned: A Clarion Hotel at 7000 W. 108th in Overland Park, and a Clarion Hotel at 11828 NW Plaza Circle in Kansas City, Mo. Chaudary and Bridge lowered their hotels’ operating costs and put themselves at a competitive advantage by not paying Social Security, Workers Compensation and unemployment insurance for the undocumented workers.

According to court records, the investigation began in December 2011 when the U.S. Department of Homeland Security (DHS) and the Kansas Department of Revenue (KDOR) received information that the owners of the hotels were employing foreign nationals who not lawfully present in the United States. In June 2012, an undercover agent posing as an undocumented worker got a job at the Overland Park Hotel. He was hired even though he told his employers he was not authorized to work in the United States.

In 2011 and 2012 the defendants filed false and fraudulent Quarterly Wage Reports and Unemployment Tax Returns with the Kansas Department of Labor in which they under-reported the number of employees at the Overland Park hotel, the amount of total wages paid and the amount of unemployment taxes due.

Bridge is the third person to be sentenced in the case. Judith Vanzant, a hotel manager, and Syed Naqvi, a Pakistani native who worked as a desk clerk, already were sentenced. Co-defendant Munir Ahmad Chaudary is awaiting sentencing.

Grissom commended Homeland Security Investigations (HSI), the Kansas Department of Revenue (KDOR), the Overland Park Police Department, the U.S. Department of Labor and Assistant U.S. Attorney Brent Anderson for their work on the case.

KANSAS CITY, KAN. - A California man who was convicted on federal methamphetamine trafficking charges in Kansas was sentenced Friday to 146 months in federal prison, U.S. Attorney Barry Grissom said.

Tino Soriano, 33, Coachella, Calif., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted that on March 22, 2012, he was one of the occupants of a car that fled from a house in the 800 block of South 72nd Street in Kansas City, Kan., after investigators made a controlled delivery of a package containing almost two pounds of methamphetamine. Investigators had seized the package at a FedEx facility in Kansas City after a drug dog alerted to the contents. Soriano and two co-defendants left the package behind because they realized they were under surveillance.

Officers pursued Soriano’s vehicle, eventually finding it abandoned at a residence in the 16000 block of 182nd Street in Tonganoxie, Kan. A birth certificate and other documents belonging to Soriano were found in the car. In addition, investigators learned that on March 21, 2012, Soriano was present with co-defendant Leslie Kingsley during a drug deal at a strip club off K-7 Highway in Bonner Springs, Kan. Kingsley fronted 14 grams of meth to co-defendant Kristy Sherley so she could provide samples to other buyers.

Co-defendants include:

Leslie Kingsley, who is awaiting sentencing.

Kristy Sherley, who was sentenced to 60 months.

Michael Loveland, who was sentenced to 92 months.

Jose Del Refugio Sanchez, who was sentenced to 38 months.

Grissom commended the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Drug Enforcement Administration, Deputy Chief Assistant U.S. Attorney Jay Robinson of the U.S. Attorney’s office in Riverside, Calif., and Assistant U.S. Attorney Sheri McCracken for their work on the case.

KANSAS CITY, KAN. - Tireless investigative work by a Johnson County deputy sheriff was the key to bringing down a drug trafficking ring in Olathe that sold more than $16 million worth of designer drugs in just 14 months, U.S. Attorney Barry Grissom said.

Deputy Christopher Farkes received the U.S. Attorney’s 2015 Guardian of Justice Award Wednesday. Farkes led a three-year investigation that resulted in federal indictments against 13 individuals including the owners of an Olathe-based business, Tracy Picanso and Roy Ehrett.

“Chris Farkes is very intelligent, with great intuition and a great passion for law enforcement,” Grissom said. “He was born to do the work he does.”

In December, Picanso and Ehrett each pleaded guilty to producing and selling misbranded and counterfeit drugs and conspiring to launder the proceeds. They admitted producing and selling dangerous controlled substances and controlled substance analogues of THC (the active ingredient in marijuana) and cocaine-like stimulants. The products sold under exotic names such as Head Trip, Black Arts, Pump It, Grave Digger and Voodoo Doll. The operation stretched from Kansas to Missouri, California, Texas, Georgia and Colorado, involving more than 15 companies with more than 40 financial accounts at more than 10 financial institutions.

“Chris has great analytical skills and an incredible memory,” said Assistant U.S. Attorney Tanya Treadway, who is prosecuting the case. “He has the tenacity and the ability to review mountains of documentary evidence and to weave together an evidentiary chain we can rely on at trial.”

 

Ryan Williams and Joseph Daneff Receive Guardian Awards for Operation Broken Bone

 

Also receiving the Guardian of Justice Awards on Tuesday were FBI Special Agent Ryan Williams and Detective Joseph Daneff of the Kansas City, Mo., Police Department. They worked on Operation Broken Bone, an investigation and successful prosecution of a drug trafficking ring that distributed more than $1.6 million worth of cocaine, crack cocaine and marijuana in the Kansas City metro area.

The traffickers employed couriers for transporting drugs and money, and maintained multiple residences where drugs were stored and distributed. Part of the investigation required tracking drug proceeds that were laundered through gambling casinos.

“Investigators overcame seemingly insurmountable obstacles in their quest for justice, leaving no stone unturned and no avenue unexplored,” said Assistant U.S. Attorney Sheri McCracken, who prosecuted the case.

Agencies involved in the joint investigation included the FBI, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department.

“These law enforcement officers help set the standards for the men and women who safeguard our neighborhoods and protect the citizens of Kansas,” Grissom said.

The Guardian of Justice Awards recognizes law enforcement officers who did outstanding work on cases that were successfully prosecuted by the U.S. Attorney’s office. Since 2002, the award has been given to state and local law enforcement officers, as well as federal agents, who were nominated by federal prosecutors for their outstanding work.

TOPEKA, KAN. – A former insurance company service representative in Topeka was indicted Wednesday on federal embezzlement charges, U.S. Attorney Barry Grissom said.

Erin Rebecca Thomas, 46, formerly of Topeka, Kan., is charged with five counts of embezzlement. The indictment alleges that the crimes took place while she was an employee of American Home Life Insurance Company.

The indictment alleges:

   On July 26, 2010, she embezzled a $5,177 death claim.

   On Dec. 27, 2010, she forged a loan request for $9,500.

   On May 18, 2011, she forged a loan request of $18,500.

   On Oct. 18, 2011, she changed the name of a policy owner and fraudulently caused a check to be issued for $19,000.

   On Feb. 16, 2012, she forged a loan request for $25,000.

If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.

 

OTHER INDICTMENTS

Hinds Thomas Jones, 46, Vicksburg, Miss., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred May 9, 2010, in Shawnee County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Duston Slinkard and Assistant U.S. Attorney Randy Hendershot are prosecuting.

 

Collin Graham Bicknell, 22, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 11, 2015, in Shawnee County, Kan.

If convicted, he faces a maximum penalty of 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.

 

William D. Gross, 59, who is in custody in the Osage county Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 11, 2014, in Osage County, Kan.

If convicted, he faces a maximum penalty of 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.                                                                   

                                                                                                                              

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

WICHITA, KAN. – A former city clerk of Altoona, Kan., pleaded guilty Wednesday to bank fraud, U.S. Attorney Barry Grissom said.

Chrystal Scherbarth, 30, Altoona, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted the crime occurred while she was employed as city clerk. She used her access to the city’s accounts at the First Neodesha Bank to commit the crime.

The city of Altoona suffered a total loss of more than $47,800. Scherbarth diverted money from the city by fraudulently increasing her own hourly pay, fraudulently paying herself for overtime, fraudulently crediting herself with unearned paid vacation and fraudulently crediting herself with unearned sick leave.

Sentencing is set for April 29. She faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Grissom commended the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.

WICHITA, KAN. – A Wichita man was sentenced Monday to 15 months in federal prison for his role in a scheme to steal mail from postal boxes and cash counterfeit checks, U.S. Attorney Barry Grissom said.

Jeremy S. Robinson, 36, Wichita, Kan., pleaded guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to steal mail. In his plea, he admitted that in 2013 and 2014 he and his co-defendants entered an agreement to steal mail from U.S. Postal Service blue boxes.

In some cases, the defendants removed the name of the original payee and replaced it with another name in order to cash the checks. In other cases, they manufactured counterfeit checks using account information from the stolen checks.

Co-defendants include:

          Justin Anderson, who is set for sentencing March 30.

          Jennifer R. Harper, who is set for sentencing March 23.

          Madison P. Allen, who is set for trial March 27.

Grissom commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Derby Police Department and Assistant U.S. Attorney Debra Barnett 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 CITY, KAN. – A Linn County man was sentenced Monday to 41 months in prison for a federal firearms violation, U.S. Attorney Barry Grissom said.

Jeffrey Nicholas, 48, Pleasanton, Kan., pleaded guilty to one count of possessing firearms and ammunition after a felony conviction.

In his plea, Nicholas admitted the investigation began in November 2011 when the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a compliance inspection at Big Bear’s Gifts & Pawn Shop in Pleasanton. The owner of the store, co-defendant Barry Walker, was at that time Linn County Sheriff. Walker was allowing Nicholas, who had a prior felony conviction, to handle, sell and possess firearms, in violation of federal law. Walker was counseled on the violation and agreed to prevent Nicholas from having any further access to firearms.

Despite the warnings from ATF, Nicholas continued to be involved in handling, selling and possessing firearms at the store during 2012 and 2013.

Co-defendant Barry Walker was sentenced to 15 months in federal prison.

Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Sheri McCracken for their work on the case.

TOPEKA, KAN. – A Lawrence man has been sentenced to two years in federal prison for embezzling from his company and his business partners, U.S. Attorney Barry Grissom said. He was ordered to pay $619,000 in restitution.

Mark W. Elzea, 55, Lawrence, Kan., pleaded guilty to one count of interstate transportation of stolen funds.

In his plea, Elzea admitted the crime occurred while he was controller and part owner of Pur-O-Zone, a janitorial and cleaning equipment business located in Lawrence. In 2004, Elzea began embezzling funds from Pur-O-Zone and his three business partners who also owned part of the business. The crime came to light in May 2014 when one of the partners was contacted by a vendor about not having received a check. The partners discovered numerous unauthorized checks signed by Elzea and made payable to Cardmember Service Chase Bank in Illinois.

Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.

KANSAS CITY, KAN. – A Kansas City man pleaded guilty Monday to 16 counts of assisting in the preparation of false federal income tax returns.

Marcus Lovelle Blockmon, 42, Kansas City, Mo., entered his plea in U.S. District Court in Kansas City, Kan. He was indicted Oct. 8, 2014. The indictment alleged that during 2008 through 2011 he assisted 10 taxpayers in preparing false tax returns. The returns contained false information about filing status, wages, rental loss, self-employment expenses, itemized deductions, tax credit, taxable refund, annuities and exemptions.

Sentencing will be scheduled at a later time. He faces a maximum penalty of three years in federal prison and a fine up to $250,000 on each count. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Tris Hunt for their work on the case.

WICHITA, KAN. – A Kearny County man was indicted Tuesday on federal child pornography charges, U.S. Attorney Barry Grissom said.

Mark A. Wireman, 44, Lakin, Kan., was charged with five counts of distributing child pornography and one count of possessing child pornography.

According to court records, the investigation began in October 2014 when Google made a report to the National Center for Missing & Exploited Children’s (NCMEC) CyberTipline. The report was about a file containing child porn that had been uploaded on a Google email server. Investigators followed an electronic trail to Wireman, who was a previously convicted sex offender.

Wireman allegedly was exchanging emails containing child pornography with a man who he met in prison. The emails included photos of young children including toddlers in sexual situations. In one of Wireman’s emails, he urged the other man to take pornographic photos of a child to whom the man had access.

If convicted, Wireman faces a penalty of not less than 15 years and not more than 40 years on the distribution charge and not less than 10 years and not more than 20 years on the possession charge. Homeland Security investigations, the Wichita Police Department’s Exploited and Missing Child Unit and the Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Jason Hart is prosecuting

OTHER INDICTMENTS

Jeffrey L. Becklund, 56, Bellflower, Calif., is charged with one count of possession with intent to distribute methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 24, 2015, in Thomas County, Kan.

If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the possession charge, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.

Israel Guevara-Garcia, 36, and Walter Calderon, 35, Freemont, Neb., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 31, 2014, in Sedgwick County, Kan.

If convicted, they face a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

Luis Arturo Garcia Gomez, 37, Phoenix, Ariz., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Jan. 28, 2015, in Wichita, Kan.

If convicted he faces a maximum penalty of 40 years and a fine up to $2 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

Juan F. Morales, 62, Garden City, Kan., Victor Linares, 57, Lamar, Colo., and Filiberto Escobedo-Colon, 54, Garden City, Kan., are charged with one count of conspiracy to distribute methamphetamine, five counts of using a telephone in furtherance of drug trafficking, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred in December 2014 in Kearny County, Kan.

Upon conviction, the crimes carry the following penalties:

Conspiracy: Not less than 10 years in federal prison and a fine up to $10 million.

Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000 on each count.

Possession with intent to distribute methamphetamine: Not less than 10 years and a fine up to $10 million.

Possession with intent to distribute cocaine: A maximum penalty of 20 years and fine up to $1 million.

Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000.

The Finney County Sheriff’s Office, the Garden City Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.

Justin John Michael Cook, 32, Hutchinson, Kan., is charged one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Dec. 17, 2014, in Sterling, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Sterling Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

Nathaniel S. McGrew, 39, Daytona, Ky., is charged with one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Oct. 30, 2014, in Logan County, Kan.

If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million on the marijuana charge, and a penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.

Tremain Vaughn Scott, 33, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 21, 2015, in Shawnee County, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Topeka Police Department, the U.S. Marshals Service and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

Dean L. Johns, 49, Abilene, Kan., is charged with one count of wire fraud in connection with fraudulent unemployment benefit claims totaling $11,856. The crime is alleged to have occurred from March 2, 2013, to Aug. 24, 2013.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Department of Labor investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

Alfredo Huerta-Guerrero, 37, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 12, 2014, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations 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.

 

WICHITA, KAN. - Two hunting guides were sentenced Wednesday for violating the Migratory Bird Treaty Act during hunts in Reno County, U.S. Attorney Barry Grissom said.

Each of them pleaded guilty to violating the Migratory Bird Treaty Act by exceeding the daily bag limit. They were sentenced to one year unsupervised probation and a fine of $1,000. In addition, they are prohibited from hunting, fishing, trapping or accompanying anyone in those activities for one year.

Both men were working for Misty Morning Outfitters of Haven, Kan., at the time they violated federal law.

Sentenced were:

Lane Hensley, 28, Liberal, Kan.

Tanner Cox, 25, Wichita, Kan.

In his plea, Hensley admitted the crime occurred Dec. 15, 2011, when he took two undercover U.S. Fish and Wildlife Service agents on a hunt in Reno County, Kan. He exceeded the daily bag limit of three Canada geese.

In his plea, Cox admitted the crime occurred Sept. 1 and 2, 2011, on a hunt in Reno County. He exceeded the daily bag limit of 15 mourning doves.

Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.

WICHITA, KAN. - Four hunters were sentenced Wednesday for violating the federal Migratory Bird Treaty Act when they took more than 260 mourning doves during a hunt in Ellis County, U.S. Attorney Barry Grissom said today.

Each of the four pleaded guilty to one count of violating the Migratory Bird Treaty Act by exceeding the daily bag limit for mourning doves. They were sentenced to two years unsupervised probation, a $1,000 fine and $1,000 in restitution. In addition, they are prohibited from hunting, fishing, trapping or accompanying others during those activities for two years.

Sentenced were:

Harold C. Amrein, 59, Ellis, Kan.

Randy L. Amrein, 38, Fremont, Neb.

Morris H. Russell, 48, Omaha, Neb.

Tyrel S. Simpson, 33, Council Bluffs, Iowa

In their pleas, they admitted the crimes took place Sept. 2, 2014, during a hunt in the opening weekend of dove season. Following the hunt, a warden with the Kansas Department of Wildlife, Parks and Tourism found them in possession of more than 260 mourning doves. The daily bag limit for mourning doves is 15.

Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.

KANSAS CITY, KAN. – A Missouri man was sentenced Tuesday for robbing a bank in Overland Park, U.S. Attorney Barry Grissom said.

Alvin J. Williams, 24, Kansas City, Mo., was sentenced to 114 months in federal prison.

Williams pleaded guilty to one count of armed robbery and one count of using a firearm during the robbery. In his plea, he admitted that on Feb. 27, 2014, he and two co-defendants robbed Inter-State Federal Savings at 8620 Metcalf in Overland Park. They entered the bank about noon and held employees at gunpoint before fleeing with stolen money.

Co-defendant Randy A. Cornelius, 21, Kansas City, Mo., was sentenced to 57 months, and co-defendant Allen J. Williams, 24, Kansas City, Mo., is awaiting sentencing.

Grissom commended the Overland Park Police Department, the Kansas City, Mo., Police Department, the FBI and Assistant U.S. Attorney Tris Hunt for their work on the case.

KANSAS CITY, KAN. - A tax preparer in Johnson County was sentenced Tuesday to 78 months in federal prison for filing false tax returns that cost a Kansas company more than $744,000, U.S. Attorney Barry Grissom said.

John M. Moore, 53, Lenexa, pleaded guilty to one count of filing a false tax return and one count of wire fraud. In his plea, he admitted a company he owns, Accent Payroll Services (APS), was hired to provide payroll processing services for Tytan International L.L.C. of Lenexa, Kan. From 2008 to 2010, APS was responsible for paying the wages of Tytan’s employees, withholding employment taxes, filing Tytan’s employment tax returns on Internal Revenue Service form 941 and paying withheld employment taxes to the IRS.     

Moore transferred more than $2 million in employment tax withholdings from Tytan’s bank account to his company’s bank account. However, he only paid the IRS approximately $1.3 million. To keep Tytan from receiving notices from the IRS that taxes were not paid, Moore gave the IRS an address for Tytan at a post office box he controlled.

“These victims trusted Mr. Moore to properly remit their taxes, but instead he used their funds for his own purposes. Unfortunately, these victims are left holding the bag,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “Businesses who utilize a third party for paying their payroll taxes must realize that if the taxes aren’t paid, they are ultimately responsible for the tax liability. The IRS will work with victims to set up payment plans or possibly reduce penalties.”

Grissom commended the Internal Revenue Service, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.

WICHITA, KAN. – A Texas man was charged with kidnapping in federal court in Wichita Monday, U.S. Attorney Barry Grissom said.

Joseph Andrew DeRusse, 24, Austin, Texas, was charged in a criminal complaint filed in U.S. District Court in Wichita.

The complaint alleges that on Jan. 23, 2015, DeRusse kidnaped a victim identified as HMM. He intended to force her to spend three weeks with him at a bed and breakfast in Narka, Kan., during which time he intended to convince her to marry him. He is alleged to have abducted her at gunpoint in Austin. He handcuffed her and blindfolded her before driving her from Texas to Kansas. It was not until later she learned that the weapon was a BB gun.

DeRusse’s car was tracked by GPS during the drive to Kansas. On Friday, the Newton Police Department used the GPS information to find his car and pull him over on northbound I-135 at milepost 41, where they freed the victim. In the car, they found an engagement ring DeRusse had purchased.

If convicted, he faces a maximum penalty of life in federal prison. The Newton Police Department and the FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct

 

KANSAS CITY, KAN. – A Missouri woman pleaded guilty Friday to being part of a conspiracy to operate an Olathe-based business that sold at least $16 million worth of synthetic forms of marijuana and other street drugs, U.S. Attorney Barry Grissom said.

Cindy McRoberts, 49, Lees Summit, Mo., pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of conspiracy to distribute controlled substances and analogues of controlled substances.

According to court records, McRoberts was an employee who worked for co-defendants Tracy Picanso and Roy Ehrett, who owned Olathe-based businesses that produced and sold dangerous controlled substances and controlled substance analogues of THC (the active ingredient in marijuana) and methcathinones (stimulants). They used the Internet to market their products under exotic names including Pump It, Head Trip, Black Arts, Grave Digger, Voodoo Doll and Lights Out. Some of the drugs were manufactured in buckets on warehouse floors.

McRoberts worked as the office manager at the office in Olathe and at warehouses in Kansas City, Mo. She answered phones, handled online orders, leased post office boxes, picked up shipments of illegal substances and chemicals, and transported illegal substances and chemicals between warehouses.

She is set for sentencing April 27. She faces a maximum penalty of 20 years and a fine up to $1 million. Co-defendants Picanso and Ehrett are set for sentencing April 13.

Grissom 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 and Assistant U.S. Attorney Tanya Treadway for her work on the case.

WICHITA, KAN. – Federal prosecutors will recommend a 20-year sentence for a Wichita man who pleaded guilty to collecting thousands of images and videos of child pornography, U.S. Attorney Barry Grissom said today.

James Paul Bettes, Jr., 47, Wichita, Kan., pleaded guilty Thursday in U.S. District Court in Wichita to one count of distributing child pornography and one count of possessing child pornography. In his plea, he acknowledged that the investigation began in May 2014 when a detective with the Wichita Police Department downloaded child pornography that Bettes was distributing on a peer-to-peer file sharing network. The images included prepubescent children being sexually molested.

When investigators served a search warrant at Bettes’ home they found thousands of images and videos of child pornography on various devices. They determined that Bettes had been collecting child pornography since 1995 and was using a computer, external drives and other storage devices to preserve his collection.

Sentencing is set for April 9. Both parties have agreed to recommend a sentence of 20 years in federal prison. In addition, prosecutors will recommend restitution of $3,000 per victim to any victim who may be identified and requests restitution prior to sentencing. The total is not to exceed $50,000.

Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.

WICHITA, KAN. – A Wichita woman was sentenced to two years on federal probation for operating a prostitution business, U.S. Attorney Barry Grissom said.

 

Saundra J. Lacy, 60, Wichita, Kan., pleaded guilty to one count of engaging in interstate commerce in furtherance of prostitution. In her plea, she admitted Jessie’s Primetime Entertainment was a prostitution business that employed at least 20 women escorts. Customers would pay $160 for a half-hour date or $185 for an hour date with an escort. During dates, escorts engaged in sexual contact customers.

 

Lacy accepted cash, credit card and checks for escort services. The credit card transactions were processed by Merrick Bank in Utah. Payment was deposited into her account at Bank of America in Wichita.

 

Grissom commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.

WICHITA, KAN. – A man from Park City, Kan., was sentenced Wednesday to 165 months in federal prison for distributing child pornography to young boys over the Internet, U.S. Attorney Barry Grissom said.

Kyle B. Rains, 31, Park City, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that the investigation began after Feb. 6, 2014, when Omegle, an Oregon-based Internet video chat service detected child pornography videos being streamed from Rains’ IP address. Omegle notified the CyberTipline of the National Center for Missing and Exploited Children, which forwarded the information to the Kansas Internet Crimes Against Children Task Force (ICAC). Investigators followed an electronic trail to Rains’ residence in Park City.

Investigators determined that Rains was broadcast a video of a toddler being raped and sodomized. He was able to use the Omegle service to select recipients to receive the videos. He targeted young boys.

Grissom commended the Internet Crimes Against Children Task Force, the Wichita Police Department, the Sedgwick County Sheriff’s Department, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.

KANSAS CITY, KAN. – Two Missouri men were indicted by a federal grand jury Wednesday on charges of robbing an Overland Park bank, U.S. Attorney Barry Grissom said.

Landein Craddock, 33, Kansas City, Mo., and Jerome Davis, 31, Kansas City, Mo., are charged with one count of bank robbery and one count of brandishing a firearm during the robbery. The indictment alleges that on Jan. 20, 2015, they robbed the Bank of the West at 9400 Antioch in Overland Park, Kan. During the robbery they brandished a revolver.

If convicted, they face a penalty of not less than five years in federal prison and a fine up to $250,000 on the firearm charge, and a maximum penalty of 25 years and a fine up to $250,000 on the bank robbery charge. Grissom commended the Overland Park Police Department, the Leawood Police Department, the Kansas City, Mo., Police Department and the FBI for their work on the case. Assistant U.S. Attorney Scott Rask is prosecuting.

OTHER INDICTMENTS

Harold C. DeLoach, 41, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on Jan. 15, 2015, he robbed the Credit Union of America at 212 S. Ridge Road in Wichita, Kan.

If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting

Kathleen Stegman, 56, Leawood, Kan., is charged in a superseding indictment with five counts of federal tax evasion and one count of conspiracy to defraud the Internal Revenue Service. Co-defendant Christopher Smith, 50, Leawood, Kan., is charged with one count of conspiracy to defraud the IRS.

The indictment alleges Stegman, who owned Midwest Medical Aesthetics Center, Inc., in Leawood, under-reported the company’s income and overstated the company’s expenses. The conspiracy count alleges Stegman and Smith fabricated $50,575 in deductible expenses for Stegman’s company. In fact, Stegman wrote a check to Smith’s company, Encompass Construction Group, LLC, and Smith purchased gold coins for Stegman. Stegman caused the payment to be deducted as repairs and maintenance on her company’s equipment.

Upon conviction, tax evasion carries a maximum penalty of five years in federal prison and a fine up to $250,000 on each count; and conspiracy carries a maximum penalty of five years and a fine up to $250,000. The Internal Revenue Service investigated. Assistant U.S. Attorney Jabari Wamble and with DOJ Tax Attorney Ryan Raybould are prosecuting.

Jose Ontiveros, 27, Kansas City, Kan., is charged with one count of carjacking in which a death occurred and one count of discharging a firearm during the crime. The crimes are alleged to have occurred Dec. 14, 2014, in Kansas City, Kan.

If convicted, he faces a maximum penalty of life in federal prison and a fine up to $250,000 on the carjacking charge, and a penalty of not less than five years on the firearm charge. The Kansas City, Kan., Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.

Felipe Sifuentes-Cabrera, 34, De Soto, Kan., is charged in a superseding indictment with one count of possession with intent to distribute methamphetamine and one count of conspiracy to distribute methamphetamine. The conspiracy is alleged to have occurred from Feb. 1, 2014, to Nov. 4, 2014, in Olathe, Kan.

If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the possession on each count. The Olathe Police Department investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.                                                                                                                                                                                                                          

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

KANSAS CITY, KAN. - The former technology director for the City of Lenexa was sentenced to a year and a day in federal prison for wire fraud, U.S. Attorney Barry Grissom said. The defendant also was ordered to pay more than $103,000 in restitution.

 

Andrew L. Davey, 44, Overland Park, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred from 2010 to 2012 while he was the director of technology for the City of Lenexa. After he left the city to take another job, city officials discovered he had purchased numerous electronic devices, such as iPads, computers, digital cameras and televisions which he gave to friends, traded for other merchandise or services, or sold on eBay and kept the proceeds.

 

For instance, he gave iPads to members of his church, and traded an iPad to another city employee for wheels and tires. The other employee was not aware the iPad belonged to the city. He gave his mother a 50-inch television and iPad that were purchased with city funds. He told her the equipment was obsolete and the city no longer needed it.

 

Grissom commended the Lenexa Police Department, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.

TOPEKA, KAN. - U.S. Attorney Barry Grissom will speak on Martin Luther King Day in Manhattan.

Grissom will be the featured speaker for the Martin Luther King Prayer Breakfast. The event is set for 8 a.m. Jan. 19 at the Four Points Sheraton, 530 Richards Drive in Manhattan.

“Dr. King helped to bring about our nation’s greatest civil rights legislation, the Civil Rights Act of 1964 and the Voting Rights Act of 1965,” Grissom said. “As he always said, we’ve come a long way – and we still have a long way to go.”

Grissom was appointed by the president and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.

TOPEKA, KAN. – A Topeka man was indicted Wednesday on a federal bank robbery charge, U.S. Attorney Barry Grissom said.

Kirk Mychale Sexton, 26, who is currently in custody, was charged with one count of bank robbery. The indictment alleges that on Jan. 9, 2015, he robbed the Equity Bank at 3825 Southwest 29th Street in Topeka, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison 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

 

Zennie Lee Vasser, 31, Topeka, Kan., is charged with one count of robbing a commercial business.

The indictment alleges that on June 4, 2014, Vasser robbed the Check Into Cash at 3711 SW Plaza Dr., in Topeka.

If convicted, Vasser faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

 

Carissa A. Nester, 34, Blue Rapids, Kan., is charged with one count of theft of mail by a postal employee.

The indictment alleges the crime occurred from Oct. 24 to Oct. 31, 2014, while she worked for the post office in Marysville, Kan.

If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Postal Inspection Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.

 

Rodolfo Lopez, 30, Fayetteville, Ark., and Juan R. Torres-Arambula, 25, Louisburg, Kan., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Jan. 8, 2015, in Shawnee County, Kan.

An affidavit filed in the case alleges the defendants were stopped near Interstate 70 and Tallgrass Road with approximately 35 pounds of methamphetamine.

The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

TOPEKA, KAN. - A Topeka man was sentenced Monday to seven years in federal prison for armed robbery, U.S. Attorney Barry Grissom said today.

Weston Brett Canfield, 28, Topeka, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, Canfield admitted that May 12, 2014, he robbed Patty’s Retail Liquor at 3705 S.W. Plaza Drive in Topeka. During the robbery, he threatened the clerk with a .22 caliber rifle. Canfield got the rifle from co-defendant Aaron Roy Bundy. Bundy died on July 31, 2014, while awaiting trial.

Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.

WICHITA, KAN. - A Hutchinson woman pleaded guilty Monday to filing a false tax return and violating a federal law prohibiting her from having a gun, U.S. Attorney Barry Grissom said.

Rhonda J. Simmons, 40, Hutchinson, Kan., pleaded guilty to one count of presenting a false tax claim and one count of unlawful possession of a firearm after a felony conviction. In her plea, she admitted that on April 15, 2012, she prepared a false income tax return seeking a refund of $3,014.

On Aug. 14, 2012, the Hutchinson Police Department executed a search warrant on the residence where she was living in Hutchinson. They seized a 20 gauge shotgun belonging to Simmons. She was prohibited from possessing a firearm because she had been convicted of a felony in 2007 in Georgia.

Sentencing is set for March 30. She faces a maximum penalty of 10 years and a fine up to $250,000 on the firearm charge, and a maximum penalty of five years and a fine up to $250,000 on the tax charge.

Grissom commended the Internal Revenue Service and the Hutchinson Police Department for their work on the case.

WICHITA, KAN. - A former insurance agent in Wichita was sentenced Monday to 42 months in federal prison for stealing from his clients, U.S. Attorney Barry Grissom said.

Jason Matthew Pennington, 43, Wichita, Kan., pleaded guilty to two counts of wire fraud and one count of attempted bank fraud. In his plea, he admitted the crimes occurred while he was an agent working for State Farm Insurance.

WIRE FRAUD (Count Two)

In 2000, Wendell and Marita Hill, who had purchased insurance policies from State Farm, became clients of Pennington after their former State Farm agent retired. In Nov. 2004, the Hills purchased a life insurance policy through Pennington valued at more than $3.4 million. The policy was issued by Phoenix Life Insurance Company, an insurance provider affiliated with State Farm Insurance.

In 2008, Pennington devised a scheme to defraud the Hills and Phoenix. On Feb. 29, 2008, he sent a fax to Phoenix Life Insurance Company requesting a loan of $105,000 on the Hills’ life insurance policy. The loan contained the forged signature of Brent Hill, who was trustee of the Hill Family Trust. Brent Hill did not make the request for the loan.

WIRE FRAUD: (Count Four)

In 2006, Marlene Brown, who had retired following a 37-year career with the Wichita Public Schools as a teacher, coach and school administrator, purchased a State Farm life insurance policy through Pennington. The policy was valued at $1.3 million.

In September 2009, Pennington contacted State Farm and changed the address for Marlene Brown’s insurance policy to his business address. He then sent a fax to State Farm making a withdrawal of $278,250 on the policy. Pennington forged Brown’s signature and requested the withdrawal without her knowledge.

When State Farm called him to ask why the money was to be sent to his office instead of Brown’s home, Pennington lied and told them Brown was his mother-in-law.

Marlene Brown died Oct. 27, 2009.

ATTEMPTED BANK FRAUD: (Count 45)

In February 2010, Pennington applied for a line of credit from State Farm Bank. In order to qualify for the credit, he did not report to the bank that he was required to pay $5,000 a month in child support and alimony to his first wife. He also falsely reported that his second wife was receiving an annual salary as an employee of his insurance office.

Grissom commended the FBI, IRS - Criminal Investigation Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.

WICHITA, KAN. - The owner of a plastics recycling company in El Dorado pleaded guilty Monday to mishandling waste chemicals and agreed to pay more than $118,000 in restitution to the Environmental Protection Agency, U.S. Attorney Barry Grissom.

Brian J. Riley, 41, Andover, Kan., owner of Integrated Plastic Solutions, LLC., pleaded guilty to one count of negligent exposure to a hazardous air pollutant. In his plea, he admitted the company stored hazardous wastes at its facility in the form of paints, solvents and other chemicals. The paints and solvents contained ethyl benzene, which is classified as a hazardous air pollutant. After becoming aware that the Kansas Department of Health and Environment was investigating the company’s waste handling practices, Riley allowed some paints and solvents to be dumped on the IPS grounds, releasing ethyl benzene and exposing employees to the risk of flash fire and explosion.

Sentencing is set for March 30. He faces a maximum penalty of a year in federal prison and a fine up to $100,000. Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.

WASHINGTON – Today, the Department of Justice Civil Rights Division reached an agreement with the state of Kansas to reform the Kansas State Department of Corrections (KDOC) correctional practices at the Topeka Correctional Facility (TCF) to protect its women prisoners from sexual victimization.  The agreement resolves allegations that the state subjects women prisoners at TCF to harm due to sexual abuse and misconduct by correctional staff and other prisoners in violation of their constitutional rights.    

“This agreement will help ensure that women incarcerated at Topeka Correctional Center are safe and protected from sexual exploitation,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “As a result of this agreement, state officials will be required to protect women prisoners from sexual violence and abuse as is required under the Constitution.”

“This will go a long way toward reducing the harm women have experienced while being held at the TCF,” said U.S. Attorney Barry Grissom for the District of Kansas.  “The state of Kansas and the KDOC are to be commended for working with the Justice Department to reform the state’s correctional practices.”  

On Sept. 6, 2012, the Justice Department issued a findings letter concluding that women prisoners were subjected to a pattern or practice of sexual abuse.  This finding was consistent with other state reports that recognized a long-standing problem of sexual assault in the prison.  The findings report identified several systemic failures that led to the pattern of abuse.  The state failed to employ accepted correctional practices designed to protect women prisoners from harm due to sexual abuse and misconduct.  TCF did not have effective procedures to classify and manage predatory guards and prisoners.  Further, TCF lacked effective investigative and grievance processes, and did not have enough officers, including female officers, to appropriately supervise and monitor prisoners.       

The agreement requires numerous ways to remedy the deficiencies including the requirement that the state to abide by the Prison Rape Elimination Act National Standards.  The agreement details that the state must mandate zero tolerance toward all forms of sexual abuse and sexual harassment and implement specific policies and procedures designed to prevent, detect, and respond to such conduct.

The state will work to prevent and detect sexual abuse of women prisoners by ensuring adequate levels of staffing supplemented by targeted video monitoring.  The state will also implement a classification system specific to the female population at TCF, and maintain a risk assessment process that adequately identifies potential victims and predators.  The state will maintain a grievance process and by provide multiple internal ways for prisoners to privately report sexual abuse and sexual harassment.

The state will also effectively respond to any allegations of sexual abuse or sexual harassment by adhering to guidelines and timeframes for initiating and concluding investigations; ensuring prompt corrective action following any administrative or criminal finding of sexual abuse or sexual harassment; and holding culpable staff accountable through disciplinary sanctions up to and including termination.

Finally, TCF will ensure that all staff are trained on their responsibilities to prevent sexual abuse, and on how to identify, detect, report, and respond to allegations of sexual abuse.  The women prisoners at TFC will similarly be educated on these issues.  Implementation of the agreement will be overseen by a monitor who will issue a compliance report every six months. 

The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility.  Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.

This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the District of Kansas and the leadership of the Governor of Kansas, the Kansas State Attorney General’s Office and the Kansas Department of Corrections.

TOPEKA, KAN. – A Salina man has been sentenced to 130 months in federal prison for trafficking in methamphetamine, U.S. Attorney Barry Grissom said Wednesday.

Lofton H. Clark, 30, Salina, Kan., pleaded guilty to one count of distributing methamphetamine. In his plea, he admitted that Feb. 27, 2013, members of the I-70 Drug Task Force arranged to purchase 26 grams of methamphetamine from him during a transaction in a vehicle at a location in Salina.

Grissom commended the I-70 Drug Task Force and Assistant U.S. Attorney Randy Hendershot for their work on the case.

KANSAS CITY, KAN. – A former Topeka man pleaded guilty Tuesday to Social Security fraud, U.S. Attorney Barry Grissom said.

Brian David White, 43, who now lives in Kansas City, Mo., pleaded guilty to one count of Social Security fraud. In his plea, he admitted that the Social Security Administration paid more than $88,800 in disability benefits after he returned to work and failed to report it to the SSA.

In 2002, the SSA approved White’s application for disability benefits based on an inflammatory arthritis condition that made him unable to work. While receiving benefits, he attended Washburn University in Topeka and obtained a degree in radiologic technology. After earning his degree, he worked as a technician at Holton Community Hospital in Holton, Kan. Later, he began working full-time for the University of Kansas Medical Center in Kansas City, Kan. He admitted that he intentionally failed to report this work activity to the SSA so that he could obtain disability payments he was no longer entitled to receive.

Sentencing is set for April 6. He faces a maximum penalty of 5 years in federal prison, a fine up to $250,000 and restitution. Grissom commended the office of Inspector General for the Social Security Administration and Special Assistant U.S. Attorney Trey Alford for their work on the case.

WICHITA, KAN. – A former civilian employee at McConnell Air Force Base was sentenced Tuesday to three years federal probation for embezzling more than $50,000 in public funds, U.S. Attorney Barry Grissom said. In addition, she was ordered to pay approximately $53,000 in restitution.

Deidra N. Sanders, 44, Wichita, Kan., pleaded guilty to one count of theft of government money. In her plea, she admitted the crime occurred between March 2013 and April 2014 while she worked as a deputy dispersing officer for the U.S. Air Force at McConnell. In her position, she had access to the Defense Finance and Accounting Service Fund. She stole a total of $54,348 from the fund.

Grissom commended the U.S. Air Force and Assistant U.S. Attorney Alan Metzger for their work on the case.

TOPEKA, KAN. - A Topeka woman was sentenced Monday to three years in federal prison for aiding and abetting an armed robbery at a Red Robin restaurant, U.S. Attorney Barry Grissom. The sentence also includes a $1,000 fine in connection with her plea in a separate count to unlawfully accessing state motor vehicle records while she worked for the Kansas Department of Revenue.

Johanna Ross, 23, Topeka, Kan., pleaded guilty to one count of aiding and abetting an armed robbery and one count of unlawfully accessing a state database. In her plea, she admitted she assisted co-defendants Derick Renee Crawford and Travis Jeremy Coffman during an armed robbery Aug. 18, 2013, at the Red Robin restaurant at 6230 S.W. 6th in Topeka.

Crawford, who was armed with a handgun, and Coffman, who was armed with a can of mace, robbed the restaurant. During the robbery, they held employees at gunpoint and threatened to kill them.

In her plea, Ross admitted she was present in the parking lot when Crawford and Coffman planned the robbery and she drove Crawford away after the robbery. She also admitted retrieving the firearm used by Crawford, the pink can of mace used by Coffman and a shirt used by Crawford during the robbery.

In a separate count not related to the robbery, Ross admitted that while she worked for the Kansas Department of Revenue she used her access to a database of motor vehicle records to retrieve the address of an individual and pass that information on to a third party for payment, all in violation of federal law.

Co-defendants included:

Derick Renee Crawford, who was sentenced to 84 months in federal prison.

Travis Jeremy Coffman, who was sentenced to 49 months in federal prison.

Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared for their work on the case.

WICHITA, KAN. - A former banker from Great Bend appeared in federal court in Wichita Monday on charges including embezzlement, money laundering and making false entries in bank records, U.S. Attorney Barry Grissom said.

Brian W. Harrison, 55, Great Bend, Kan., is charged with three counts of making false entries in bank records, 16 counts of falsifying loan and credit applications, two counts of embezzlement, and two counts of money laundering.

The indictment, which was unsealed today, alleges the crimes occurred while Harrison was a vice president and loan officer at Farmers Bank & Trust in Great Bend. The indictment alleges Harrison made false statements to Farmers Bank to hide the poor performance of loans he made, approved and maintained. The false statements served to deflect questions from Farmers Bank about the performance of Harrison’s portfolio. The indictment alleges Harrison:

• Falsified credit and loan applications without authority of the borrower.
• Obtained loans based on false statements.
• Refinanced or consolidated loans to hide problems with loan repayments.
• Authorized loans in the name of a borrower without the borrower’s authority.
• Instructed a borrower to dispose of loan collateral in a way that damaged Farmers Bank.

 

According to the United States Treasury Department’s Troubled Asset Relief Program, on June 19, 2009, Farmers Enterprises, Inc., the holding company for Farmers Bank, received $12 million in TARP funding under the Capital Purchase Program. On Nov. 13, 2013, Farmers Enterprises, Inc., paid $11,439,252 to redeem the original funding of $12 million, resulting in a shortfall to the program of $560,748.

“Harrison’s purported scheme resulted in losses for Farmers Bank, and ultimately, federal taxpayers suffered a $560,000 loss on their TARP investment in the bank,” said Christy Romero, Special Inspector General for TARP (SIGTARP).

Upon conviction, the crimes carry the following penalties:

• Making false bank entries: A maximum penalty of 30 years on each count and a fine up to $1 million.
• Making false statements on loan and credit applications: A maximum penalty of 30 years on each count and a fine up to $1 million.
• Embezzlement: A maximum penalty of 30 years on each count and a fine up to $1 million.
• Money laundering: A maximum penalty of 20 years and a fine up to $500,000 on each count.

The FBI and the Special Inspector General for TARP (SIGTARP) investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

TOPEKA, KAN. - A former secretary-treasurer of a railroad union was sentenced Monday to time served and two years on supervised release for embezzling union funds, U.S. Attorney Barry Grissom said. He also was ordered to pay more than $17,000 in restitution to the union.

Dale T. Hull, 63, Herington, Kan., pleaded guilty to one count of embezzling union funds. In his plea, Hull admitted the crime occurred while he was secretary-treasurer of the Brotherhood of Locomotive Engineers and Trainmen, Division 261, which represented employees of the Union Pacific Railroad who work in the Herington, Kan., terminal and the Salina, Kan., hub.

Starting in 2008, Hull made unauthorized and illegal account transfers from the union’s account to his personal checking account totaling more than $17,000. He also filed false reports to the U.S. Department of Labor in which he understated his earnings as secretary-treasurer of the union.

Grissom commended the U.S. Department of Labor – Office of Inspector General and Assistant U.S. Attorney Richard Hathaway for their work on the case.

WICHITA, KAN. – A Wichita man pleaded guilty Thursday to robbing a drug store in east Wichita, U.S. Attorney Barry Grissom said.

Ryan B. Schmidt, 34, Wichita, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that on Sept. 4, 2014, he entered Gessler’s Drug Store at 4817 E. Douglas in Wichita, brandished a gun and told an employee to give him prescription drugs. He fled the store with seven bottles of hydrocodone and three bottles of promethazine in a plastic bag.

Schmidt was involved in a high speed chase with police before hitting a utility pole and another vehicle and coming to a stop.

Sentencing is set for March 9. Both parties have agreed to recommend to the judge a sentence between 14 and 25 years in federal prison.

Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.

WICHITA, KAN. – A Wichita man pleaded guilty Thursday to robbing a drug store in east Wichita, U.S. Attorney Barry Grissom said.

Ryan B. Schmidt, 34, Wichita, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that on Sept. 4, 2014, he entered Gessler’s Drug Store at 4817 E. Douglas in Wichita, brandished a gun and told an employee to give him prescription drugs. He fled the store with seven bottles of hydrocodone and three bottles of promethazine in a plastic bag.

Schmidt was involved in a high speed chase with police before hitting a utility pole and another vehicle and coming to a stop.

Sentencing is set for March 9. Both parties have agreed to recommend to the judge a sentence between 14 and 25 years in federal prison.

Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.