District of Kansas

TOPEKA, KAN. – A Topeka man pleaded guilty in federal court in Topeka Monday to a carjacking charge, U.S. Attorney Barry Grissom said.

Shaun Lee Kendall, 29, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, Kendall admitted that on Jan. 29, 2014, he and a co-defendant threatened a driver with violence in order to steal a 1999 Dodge Dakota truck.

Sentencing is set for Oct. 27. He faces a maximum penalty of 15 years in federal prison and a fine up to $250,000. Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.

Co-defendant Michael Richard Wilkins is awaiting trial.

WICHITA, KAN. - The former manager of a Wichita massage parlor was sentenced Monday to five years on federal supervised release for transporting a woman from China to work as a prostitute in Wichita, U.S. Attorney Barry Grissom said. She also will be required to register as a sex offender.

Yan Zhang, 50, Wichita, Kan., pleaded guilty to one count of interstate transportation for the purpose of prostitution. In her plea, she admitted that in 2009 she induced a Chinese woman to move to Wichita to work in a massage parlor and engage in prostitution.

In her plea, Zhang said she was married in 2004 to co-defendant Gary Kidgell. During the marriage, she worked at massage parlors in San Francisco and Phoenix, where she became familiar with the operation of massage parlors as fronts for prostitution. In 2009, she and Kidgell moved to Wichita to establish their own massage parlor. She worked giving massages and served as a manager because she was able to communicate with Chinese women who worked at the massage parlor.

Co-defendants are: Gary Kidgell, who is set for sentencing Aug. 22.
Xinqing Tian, 44, who was sentenced to two years supervised release.

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

KANSAS CITY, KAN. – A Johnson County man pleaded guilty in federal court Monday to taking part in a fraud scheme that cost the Bank of Blue Valley more than $877,000, U.S. Attorney Barry Grissom said.

Timothy P. Fitzgerald, 56, Leawood, Kan., pleaded guilty to one count of conspiracy to commit bank fraud. In his plea, he admitted the crime took place while he was chief financial officer of KC United, LLC, which was a holding company for five construction services companies located in Kansas City, Kan.

KC United was a loan customer of the Bank of Blue Valley. In 2008, KC United was losing money. Fitzgerald and other conspirators knew that KC United needed to show a profit in order to maintain its bank and bonding relationships. So Fitzgerald and others manipulated KC United’s quarterly financial statements to falsely reflect a profit. Fitzgerald delivered the falsified reports to the Bank of Blue Valley, which relied on the false information to renew the company’s line of credit. Fitzgerald and other conspirators also prepared annual financial statements that contained falsified profits and a cover letter falsely stating that an outside accounting firm had reviewed the statement. They placed the cover letter on the letterhead of an outside accounting firm.

On April 28, 2011, three of the companies owned by KC United filed for Chapter 11 bankruptcy. The Bank of Blue valley sold its position in the remaining outstanding loan to KC United, sustaining a loss of more than $877,000.

Blue Valley Ban Corp., the holding company for Bank of Blue Valley received more than $21 million in funding from the U.S. Treasury’s Troubled Asset Relief Program (TARP).

“Bank of Blue Valley did not repay TARP and missed 18 quarterly dividend payments totaling $4.9 million, money owed to taxpayers as a result of the bank holding TARP funds,” said Christy Romero, Special Inspector General for TARP (SIGTARP).

“Treasury sold its TARP investment in the bank at a principal loss of nearly $500,000, a loss in addition to uncollected TARP dividend payments,” Romero added.

Sentencing will be set for a later time. Fitzgerald faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Grissom commended the U.S. Department of Labor – OIG, the U.S. Department of Labor – EBSA, IRS Criminal Investigations, the FBI, the Special Investigator General for the Troubled Asset Relief Program investigated and Assistant U.S. Attorney Jabari Wamble for their work on the case.

WICHITA, KAN. A former insurance agent in Wichita pleaded guilty Tuesday to stealing from his clients, U.S. Attorney Barry Grissom said.

Jason Matthew Pennington, 42, Bel Aire, 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.

Sentencing is set for Nov. 3. Both parties have agreed to recommend a sentence of 42 months in federal prison.

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. – Two Dodge City residents – one from Mexico and the other a United States citizen – have been indicted by a federal grand jury here for allegedly selling birth certificates and Social Security cards to undocumented aliens, and then driving them to Oklahoma to obtain state-issued ID cards, U.S. Attorney Barry Grissom said Thursday.

The two, Ronald Davila-Vega, 34, a Mexican national, Sindy [cq] Herrera-Pacheco, 54, a U.S. citizen, were indicted Wednesday on one count of document fraud, one count of transporting illegal aliens, one count of aiding the unlawful production of identification documents, and two counts of aggravated identity theft. Davila-Vega is scheduled to make a first appearance here at 11 a.m. Friday before U.S. Magistrate Judge Karen M. Humphreys. Herrera-Pacheco is being held in the Ford County jail and is expected to be transported to Wichita for a court appearance next week.

According to an affidavit filed in the case, Davila-Vega, himself a person who previously had been deported to Mexico, sold sets of documents for $1,000 to other undocumented aliens in the United States unlawfully so they could obtain employment at southwest Kansas meat packing plants. For another $1,000, Vega and Herrera-Pacheco would drive the buyers to driver’s license offices in Oklahoma so they could obtain a photo ID card. Many of the plants now require a photo ID for new hires, Grissom said.

Grissom said investigators and his office are working with Oklahoma officials in the case and to address the problem of fraudulently-obtained ID cards.

The case is being investigated by the Kansas Bureau of Investigation and Homeland Security Investigations in cooperation with the Dodge City Police Department. At least two of the persons who allegedly bought documents from Davila-Vega were teenagers from Central America.

The identification documents sold relate to United States citizens. The investigators are in the process of identifying those persons and notifying them that their identities have been compromised, he said.

If convicted, the defendants face a maximum sentence of 15 years on the document fraud charges, 5 years on the transporting of aliens charges and a mandatory two years in prison on the aggravated identity theft charges. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.

KANSAS CITY, KAN. – A man who worked for the Garmin Company in Olathe, Kan., has been sentenced to 33 months in federal prison for stealing boxes of GPS devices from the company, U.S. Attorney Barry Grissom said. He also was ordered to pay more than $2 million in restitution.

Terrence M. Heathington, 32, formerly of Olathe and currently of Atlanta, Ga., was sentenced Tuesday. In his plea to one count of mail fraud, he admitted that the crime was committed from March to September 2008 when he worked in Garmin International, Inc.’s warehouse in Olathe as a material handler. He shipped a large quantity of Garmin GPS devices to his personal address and the address of high school friends living in Atlanta. He and his friends sold the devices on eBay and to other individuals.

The thefts were discovered when a person who bought one of the stolen devices contacted the company. An audit revealed that boxes of GPS devices had been shipped to Heathington’s home in Ottawa and to addresses in Georgia, where Heathington had lived.

Grissom commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.

KANSAS CITY, KAN. – A federal jury today convicted three men for their roles in a drug trafficking conspiracy that distributed millions of dollars’ worth of marijuana in the Lawrence area, the U.S. Attorney’s Office announced today. The government is seeking a money judgment of more than $16.9 million against the traffickers.

The men were found guilty on charges of conspiracy to distribute marijuana and other drug trafficking counts. The defendants are:

Los Rovell Dahda, 32, Lawrence, Kan.
Roosevelt Rico Dahda, 32, Lawrence, Kan.
Justin Cherif Pickel, 34, San Lorenzo, Calif.

During trial, prosecutors presented evidence that starting in 2008 law enforcement agencies began receiving information that Los Dahda was distributing marijuana in the Lawrence area. When Roosevelt Dahda was released from prison in November 2010, he joined his brother Los in the trafficking organization.

Prosecutors presented evidence that during the early days of the conspiracy the Dahdas bought marijuana from Mexico to sell in Lawrence. Over time, they turned to California for their supply. They purchased marijuana in California for $1,800 to $2,800 a pound and they sold it in the Lawrence area for $3,500 to $4,800 a pound. It is estimated that the traffickers distributed more than 8,000 pounds of marijuana from 2005 to 2012.

The Dahdas used a business they owned in Lawrence, Gran-Daddy’s BBQ at 1447 West 23rd Street, as well as other properties to receive, store and process marijuana for distribution.

Pickel worked for the Dahdas transporting marijuana from California to Lawrence. On April 25, 2012, he was stopped on Interstate I-80 in Nebraska. Investigators found 38 pounds of marijuana concealed in a false compartment in a toolbox/fuel tank. Pickel also set up an indoor marijuana grow operation in California that he maintained for the Dahdas. On June 13, 2012, investigators executed a search warrant at Pickel’s residence in California and seized more than 100 marijuana plants. 

The defendants were convicted on the following counts:

Los Rovell Dahda: Conspiracy (count 1), maintaining Daddy’s BBQ at 1147 W. 23rd in Lawrence in furtherance of drug trafficking (count 31), distributing marijuana (counts 26 and 36), using a telephone in furtherance of drug trafficking (counts 38, 39, 41, 42, 45, 46), possession with intent to distribute marijuana (counts 43, 49, 73, 85, 88 and 73.

Roosevelt Rico Dahda: Conspiracy (count 1), using a telephone in furtherance of drug trafficking (counts 42, 45, 53, 55, 70) possession with intent to distribute marijuana (counts 43, 49, 73) possession with intent to distribute within 1,000 feet of Holcomb Sports Complex in Lawrence (count 56).

Justin Cherif Pickel: Conspiracy (count 1),using a telephone in furtherance of drug trafficking (count 70).

 Sentencing will be set for a later date. The crimes carry the following penalties:

Conspiracy: Not less than 10 years and a fine up to $10 million. On this count, Roosevelt is facing a minimum of 20 years because of his prior convictions.
Maintaining a house or building in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $250,000.
Distributing marijuana within 1,000 feet of a school or playground: A maximum penalty of 10 years and a fine up to $500,000.
Distributing marijuana; possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000.
Taking part in an ongoing criminal enterprise: Not less than 20 years and a fine up to $2 million.

Agencies involved in the investigation and the arrest of defendants include the Douglas County Sheriff=s Office, the Johnson County Sheriff=s Office, the Lawrence Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service, the U.S. Postal Service, the Alameda County, Calif., Sheriff=s Drug Task Force, the Kansas Bureau of Investigation, the Lenexa Police Department, the Overland Park Police Department, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department and the Hayward, Calif., Police Department. Assistant U.S. Attorney Terra Morehead is prosecuting.

WICHITA, KAN. – A Butler county couple was indicted Wednesday on federal charges of stealing more than $1.5 million from Presbyterian Manors of Mid-America, a Wichita-based company that owns assisted living centers in Kansas and Missouri, U.S. Attorney Barry Grissom said.

In Kansas, the company has facilities in Wichita, Topeka, Kansas City, Olathe, Lawrence, Emporia, Salina, Dodge City, Fort Scott, Parsons, Arkansas City, Newton, Sterling and Clay Center.

Brent A. Shryock, 43, Augusta, Kan., and his wife, Lori A. Shryock, 50, Augusta, Kan., are charged with four counts of mail fraud. The indictment alleges the crimes occurred while Brent Shryock was employed as information systems director for the company. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.

The defendants are alleged to have created four fictitious companies: LGR Technology, Innovative Software Solutions, DT Solutions and Microtech Solutions. The indictment alleges the initials in LGR Technology stood for “Let’s Get Rich.” The defendants used the fictitious companies to submit fraudulent invoices to PMMA, Presbyterian Manor, Aberdeen and Ashfield.

If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

OTHER INDICTMENTS

Thomas F. Fee, 53, Hutchinson, Kan., is charged with one count of unlawful possession of a machine gun and one count of unlawful possession of a silencer. The crimes are alleged to have occurred July 4, 2014, in Reno County, Kan. Fee was arrested after a standoff with Hutchinson police.

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

James Paul Bettes, Jr., 47, Wichita, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crime is alleged to have occurred May 16, 2014, in Wichita, Kan.

If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Homeland Security Investigations and the Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.

Marla R. McDonald, 25, Garden City, Kan., is charged with one count of Social Security benefit fraud, three counts of aggravated identity theft, one count of mail fraud and 11 counts of wire fraud. The crimes are alleged to have occurred in 2011 and 2012 in Finney County, Kan.

Upon conviction, the crimes carry the following penalties: Social Security benefits fraud: A maximum penalty of five years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to the underlying sentence.
Mail fraud: A maximum penalty of 20 years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.

The Social Security Administration – Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Jonearl Smith, 35, is charged with one count of possessing and discharging a firearm in furtherance of a crime of violence and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred July 12, 2014, in Wichita, Kan.

If convicted, he faces a penalty of not less than 10 years and not more than life, consecutive to any other count, and a fine up to $250,000 on the first count; and a maximum penalty of 10 years and a fine up to $250,000 on each of the other counts. The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

Diedra N. Sanders, 43, Wichita, Kan., who was a civilian employee at McConnell Air Force Base in Wichita, is charged with one count of theft of public money and three counts of submitting false reports to the federal government to cover up the theft. The crimes are alleged to have occurred in 2013 at McConnell Air Force Base.

The indictment alleges Sanders committed the crime while she was employed as a deputy dispersing officer. The indictment alleges the largest amount stolen at one time was $4,000.

 If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Air Force investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

 Coley R. Logan, 19, Fort Scott, Kan., is charged with one count of theft of mail from the U.S. Postal Service. The indictment alleges Logan was employed as a highway contract route driver and the crimes occurred in March and May 2014.

 If convicted, she faces a maximum penalty of five years and a fine up to $250,000. The U.S. Postal Service – Office of Inspector General investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

Alexander J. Pauler, 26, Wichita, Kan., is charged with unlawful possession of a firearm following a misdemeanor conviction for a crime of domestic violence. The crime is alleged to have occurred March 30, 2014, in Wichita, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

Darrell E. Finney, 24, Wichita, Kan., is charged with unlawful possession of a firearm by a user of controlled substances. The crime is alleged to have occurred April 19, 2014, in Wichita, Kan.

 If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is investigating.

Kim Householder, 53, Tribune, Kan., is charged with unlawfully possessing a silencer attached to a Ruger SR-22 rifle. The crime is alleged to have occurred April 4, 2014, in Tribune, 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 Michelle Jacobs is investigating.

Kenneth E. Weaver, 58, Denver, Colo., is charged with one count of possession with intent to distribute marijuana. The crime is alleged to have occurred July 11, 2014, in Allen County, Kan.

 The government is seeking a money judgment against Weaver of $1.4 million, which represents the proceeds of the crime.

If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

James Michael Post, 53, is charged with failing to register as required by Sex Offender Registration Notification Act. The crime is alleged to have occurred Oct. 28, 2012, in Sedgwick County, Kan.

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

 Juan Trejo-Martinez, 54, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 5, 2014, in Finney County, Kan.

 If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

 Juan Lopez-Morales, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 6, 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. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Pedro Garcia-Cordero, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 7, 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. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

 Israel Santamaria-Rodriguez, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 10, 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. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

 Kent Misak, 58, Wichita, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 15, 2014, in Sedgwick County, Kan.

 If convicted, he faces 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. Assistant U.S. Attorney Aaron Smith is prosecuting.

Ivan Bustamente-Zazueta, 30, Park City, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 15, 2014, in Sedgwick County, Kan.

 If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the methamphetamine 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 Aaron Smith is prosecuting.

 Adan Zazueta-Zambada, 35, is charged with one count of possession with intent to distribute methamphetamine, and one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. The crimes are alleged to have occurred July 15, 2014, Sedgwick County, Kan.

If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the drug charge and a maximum penalty of 10 years and a fine up to $250,000 on the immigration charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

Jose Oscar Arciniega-Soto, 37, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of firearms in furtherance of drug trafficking and one count of unlawful possession of firearms following a felony conviction. The crimes are alleged to have occurred July 15, 2014, in Wichita, Kan.

  If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the methamphetamine count; not less than five years 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 the other firearm count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

 Jose Maria Santa Cruz, 29, Tucson, Ariz.; Jonatan Jimenez, 20, a citizen of Mexico; Olivia Luisa Aguilar, 31, Tucson, Ariz;and Shalita Dontae Black, 26, Tucson, Ariz., are charged one count of possession with intent to distribute methamphetamine and one count of traveling from Arizona through Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred July 17, 2014, in Sedgwick County, Kan.

 If convicted, they face a penalty of not less than 10 years and a fine up to $10 million on the methamphetamine count, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Sedgwick County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch 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 Wichita chiropractor pleaded guilty Monday to defrauding health care insurers of more than $1.3 million, U.S. Attorney Barry Grissom.

Jeffrey D. Fenn, 33, Wichita, Kan., pleaded guilty to one count of health care fraud, two counts of aggravated identity theft and one count of tax evasion. In his plea, he admitted that from March 2011 to October 2013 he executed a health care fraud scheme through his businesses, including Wichita Health and Wellness, Fenn Chiropractic, P.A. and Wichita Pain Associates, P.A. Fenn submitted false claims to Medicare, Blue Cross/Blue Shield of Kansas and Coventry Health Care of Kansas, Inc., and the Federal Employees Health Benefits Program.

Chiropractors have a limited scope of practice. They are not allowed to perform injections, dispense drugs or supervise ARNPs and physicians. Fenn developed what he called an “integrated practice,” hiring physicians, advanced registered nurse practitioners and physical therapists and ostensibly having them perform procedures he was not qualified to perform. He misrepresented to the Kansas Board of Healing Arts that medical doctors had an ownership in his clinic. He used the names of physicians he employed to submit false claims for services.

Fenn fraudulently billed for nerve conduction tests, nerve block injections, subcutaneous infiltrate proceedings, fine needle aspirations and ultrasound procedures.

He also made fraudulent claims for business and personal income taxes. For example, he claimed a $9,400 business expense for purchasing a server. In fact, he spent the money to make a down payment on a residential lot in Wichita. He claimed a $15,100 expense for advertising. In fact he used the money to make a down payment on a ski boat.

Sentencing is set for Oct. 20. Both parties have agreed to recommend a sentence of five years in federal prison and restitution totaling more than $1.8 million.

Grissom commended Health and Human Services, Office of Inspector General, Office of Investigations, the FBI, Defense Criminal Investigative Service, the Food and Drug Administration, the Internal Revenue Service and Assistant U.S. Attorney Tanya Treadway for their work on the case.

KANSAS CITY, KAN. – A Kansas man who was part of a drug trafficking organization that distributed more than $1.6 million’s worth of cocaine, crack and marijuana in the Kansas City, Kan., area was sentenced Monday to 15 years in federal prison.

Rahmann Easley, 35, Kansas City, Kan., pleaded guilty to one count of conspiracy. In his plea, he admitted that he was a member of a drug trafficking organization headed by co-defendant Gregory Moore that operated in the Kansas City metropolitan area from 2006 through 2012. Easley and his brother, co-defendant Charles Easley, purchased cocaine from Moore. On March 27, 2012, a search of Easley’s car turned up 29.5 grams of cocaine, 24.6 grams of crack and 31.5 grams of marijuana.

Easley agreed to a money judgment against him of more than $1.6 million, which represents the proceeds of the crime.

Co-defendants who have been sentenced include:

Damian Mays: 220 months.
Frank Sharron Piper, III, 24, Kansas City, Kan: 135 months.
Charles Easley, 38, Kansas City, Kan.: 121 months.
Christopher Holliday, 26: 114 months.
Brenton Bassett, 38, Kansas City, Kan.: 84 months.
Michael D. Davis, 33, Kansas City, Kan., 40 months.
Johnie Mitchell, 60, Kansas City, Kan.: 35 months.
Oudre Durham, 40, Kansas City, Kan.: 30 months.

Grissom commended the FBI, the Kansas City, Mo., Police Department Career Criminal Squad, the Social Security Administration, the Kansas City, Kan., Police Department, Assistant U.S. Attorney Sheri McCracken, Special Assistant U.S. Attorney Trent Krug and Assistant U.S. Attorney Bruce Rhoades of the Western District of Missouri for their work on the case.

WICHITA, KAN. A report on racial profiling produced by Wichita State University will lead off the U.S. Attorney’s Fourth Annual Statewide Civil Rights Symposium Aug. 13 at WSU, U.S. Attorney Barry Grissom said today.
      
Michael Birzer, Director of WSU’s School of Community Affairs will speak on racial profiling during the day-long symposium, which is expected to draw civil rights advocates and law enforcement officers from across the state. Earlier this month, Birzer reported the results of a study for the City of Wichita showing that during a six-month period African-Americans accounted for 22 percent of the people receiving traffic violations in Wichita. African-Americans make up about 11 percent of the city’s population.

Grissom said he looks forward to a frank discussion about what the results of the study mean and how law enforcement can work more cooperatively with the community.

“Protecting public safety and protecting civil rights are compatible goals,” Grissom said. “We can do both.”

 “Our office is committed to the principle that all persons are equal in the eyes of the law,” he continued. “We should work together to address anything that might undermine the trust and confidence that people have in our law enforcement.”

The conference will be held from 9 a.m. to 4 p.m. in WSU’s Metropolitan Complex at 5015 E. 29th North. It is free and open to the public, but enrollment is required. Registration forms are available online at the U.S. Attorney’s Web site: http://www.justice.gov/usao/ks/  

The symposium also will include:

• A look at the federal Community Relations Service, which provides mediation, facilitation and training on federal civil rights issues.
• A presentation on hate crimes by the FBI.
• A civil rights panel discussion moderated by U.S. Attorney Barry Grissom.

The U.S. Department of Justice is responsible for upholding the civil and constitutional rights of all Americans. It enforces federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin.

Sponsors for the symposium include the U.S. Attorney’s Office, the Midwest Criminal Justice Institute at WSU, the Kansas Law Enforcement Training Center, the School of Community Affairs at WSU and the Regional Policing Training Institute at WSU. 

For more information, call Jim Cross, public information officer, at 316-269-6552.

KANSAS CITY, KAN. A woman who worked at the Grossman Center in Leavenworth has been sentenced to two years on federal probation for failing to report that she knew it when an inmate left the facility to avoid a drug test, U.S. Attorney Barry Grissom said.

Jessica Wilmer-Davis, 34, Leavenworth, Kan., pleaded guilty to one count of misprision, or failing to report a federal crime. In her plea, she admitted that while she was a contract employee working as a cook she began an intimate relationship with Joshua Spurgeon, an inmate at the facility. Spurgeon was allowed to leave the facility only to go to work or approved medical appointments.

On Dec. 8, 2013, Spurgeon told Wilmer-Davis he was going to leave the facility without permission because of an upcoming drug test. On Dec. 9, when Spurgeon turned up missing, Wilmer-Davis was asked if she knew anything about his disappearance. She did not disclose that he had told her he planned to escape.

Grissom commended the U.S. Marshals Service, the Justice Department’s Office of Inspector General and Assistant U.S. Attorney Chris Oakley for their work on the case.

WICHITA, KAN. A Wichita man pleaded guilty Monday to filing a false tax return and agreed to pay $34,510 in restitution, U.S. Attorney Barry Grissom said.

James L. Pennington, 66, Wichita, Kan., pleaded guilty to one count of filing a false tax return. In his plea, he admitted his federal income tax return for calendar year 2006 made false claims of expenses for a consulting business. The tax return also failed to report income from the consulting business.

Pennington is a co-defendant with his son, Jason Matthew Pennington, 42, Bel Aire, Kan., who is awaiting trial on charges of wire fraud, money laundering, bank fraud and making false statements to a financial institution. The indictment alleges Jason Pennington stole money from the trust of Marlene M. Brown after her death.

James Pennington is set for sentencing Oct. 6. Both parties have agreed to recommend a year of supervised release in addition to the restitution.

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

KANSAS CITY, KAN. - A Kansas man pleaded guilty Monday to helping to rob a Franklin County Bank, U.S. Attorney Barr Grissom said.

Robert Martin, 39, Quenemo, Kan., pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of bank robbery. In his plea, he admitted he took part in the March 19, 2014, robbery of Goppert State Service Bank at 118 East Franklin Street in Pomona, Kan. He said he drove to the bank with co-defendant Caleb Jeffcoat. He gave Jeffcoat a mask and BB gun that had been altered to make it look more like a real gun. Jeffcoat entered the bank and robbed a teller.

Investigators used video surveillance from a Dollar General store and a gas station in Pomona to identify the robber.

Co-defendants are: Caleb Jeffcoat, 26, Quenemo, Kan., who is awaiting sentencing.
Christel Collins, 37, Quenemo, Kan., who is awaiting trial.

Sentencing will be set for a later date. Martin faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Franklin County Sheriff’s Office, the Ottawa Police Department, the Kansas Bureau of Investigation, the FBI, the Franklin County Attorney’s Office and Assistant U.S. Attorney Scott Rask 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.

WICHITA, KAN. - A former employee of a bank in Neosho County was sentenced Monday to a year and a day in federal prison for embezzling more than $278,000 from the bank and two customers, U.S. Attorney Barry Grissom said.

Sherrie Landell, 42, Erie, Kan., pleaded guilty to one count of embezzlement by a bank employee. In her plea, she admitted that from September 2007 to May 2013 she embezzled from Exchange State Bank.

Landell worked in the bank’s branch in St. Paul, Kan. She was responsible for maintaining the bank’s general ledger account and an account designated for accounts receivable on certificates of deposit. Money she stole included interest due on certificates of deposit. She fraudulently altered the bank’s records to conceal the crime. The shortage was discovered during a bank regulatory exam and subsequent audit by an independent accounting firm in 2013.

Grissom commended the U.S. Secret Service, the Federal Deposit Insurance Corporation and Assistant U.S. Attorney Aaron Smith for their work on the case.

KANSAS CITY, KAN. – Two Kansas City men were indicted today on a federal bank robbery charge, U.S. Attorney Barry Grissom said.

Dale Williamson, 34, Kansas City, Mo., and Robert Robinson, 40, Kansas City, Mo., were charged with one of count bank robbery in connection with the May 22, 2014, robbery of the Bank of America, 15811 Metcalf Avenue in Overland Park, Kan.

The men initially were charged in a criminal complaint filed June 14 in U.S. District Court in Kansas City, Kan. It is alleged that Robinson, wearing a baseball cap and a hoodie, walked into the bank holding a cellular telephone to his ear. He showed a clerk a note saying, “I have a gun. I will kill you.” He tucked the money from the robbery into a folder and walked out of the bank.

After investigators released surveillance photos from the robbery, they identified Robinson as the bank robber and Williamson as an accomplice who planned the robbery and drove the getaway car.

If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI and the Overland Park Police Dept. investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting .

OTHER INDICTMENTS

Gary A. Schutza, Jr., 56, Prairie Village, Kan., is charged with one count of possession of child pornography and one count of receiving child pornography. The crimes are alleged to have occurred in 2013 in Johnson County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the possession charge, and a penalty of not less than five years and a fine up to $250,000 on the charge of receiving child pornography. Homeland Security Investigations investigated. Assistant U.S. Attorney Kim Martin is prosecuting.

 Dacco Shane Muth, 27, Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred March 15, 2014, in Bonner Springs, Kan.

 If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each of the firearms charges and a maximum penalty of 20 years and a fine up to $1 million on the drug charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bonner Springs Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.

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

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KANSAS CITY, KAN. - Theowners of an Overland Park hotel pleaded guilty Monday to a federal charge of employing undocumented workers, who they paid less than other employees, U.S. Attorney Barry Grissom said.

Munir Ahmad Chaudary, 53, and his wife, Rhonda R. Bridge, 41, 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.

“Unscrupulous employers are the driving force behind illegal immigration,” U.S. Attorney Barry Grissom. “This case should send a message that they are not above the law.”

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.

Sentencing will be set for a later date. The defendants face a maximum penalty of five years in federal prison without parole and a fine up to $250,000. In addition, the government is seeking the forfeiture of any funds or property derived from the defendants’ illegal activities.

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.

TOPEKA, KAN. A Junction City man was sentenced Monday to 63 months in prison on a federal child pornography charge, U.S. Attorney Barry Grissom said.

Scott Deppish, 43, Junction City, Kan., pleaded guilty to one count of accessing child pornography with intent to view. In his plea, he admitted that that on Feb. 12, 2013, investigators served a search warrant and seized his desktop computer and two lose hard drives. They found images depicting prepubescent children engaged in sexual conduct. They also found images of a known victim in what is referred to as the “Abby” series, which were taken in the state of Idaho. They depict a very young prepubescent female engaged in sexual conduct with an adult male.

Grissom commended the Junction City Police Department, Homeland Security Investigation and Assistant U.S. Attorney Christine Kenney for their work on the case.

GARDEN CITY, KAN. A Garden City man was sentenced Monday to 13 years in federal prison on a federal firearms charge, U.S. Attorney Barry Grissom said.

Anthony J. Reyna, 24, Garden City, Kan., pleaded guilty to one count of unlawful possession of a firearm following a felony conviction. In his plea, he admitted that on Nov. 13, 2012, he sold a handgun to an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives who was working undercover. The two met near a Home Depot store in Garden City. Because Reyna had a prior felony conviction he was prohibited by federal law from possessing a firearm.

Grissom commended the Garden City Police Department, the ATF and Assistant U.S. Attorney Lanny Welch for their work on the case.

TOPEKA, KAN. – A man from Kansas City, Kan., has been indicted on federal charges of robbing a credit union in Lawrence, U.S. Attorney Barry Grissom said today.
      
Antonio P. Gaitan, 35, who is currently in federal custody, is charged with one count of bank robbery. The indictment alleges that on April 5, 2014, he robbed Truity Credit Union, 3400 West 6th Street in Lawrence, Kan.

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

 
OTHER INDICTMENTS

Darrian Michael Stewart, 20, currently in the Shawnee County Jail, is charged with two counts of robbery. The indictment alleges that on June 20, 2014, he robbed a BP gas station at 1401 S.W. Huntoon in Topeka, Kan. The indictment also alleges that on June 11, 2014, he robbed Cali Smoke Stop and Gas at 2701 S.E. California Avenue in Topeka.

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

Shu-Ying Sun, 44, who has been living in Overland Park, Kan., and Mark Andrew Garlock, 49, Overland Park, Kan., are charged in a superseding indictment with one count of conspiracy to commit marriage fraud and one count of making a false statement on a passport application. The crimes are alleged to have taken place from 2005 to 2009 in Douglas County, Kan.

The indictment alleges that Sun, who is a foreign national, entered into a marriage contract with Garlock for the purpose of evading immigration laws. She had the assistance of Quong Bow Low, who offered to assist aliens in the pursuit of lawful status. He charged fees for services such as coaching defendants on how to answer questions during immigration interviews so officials would believe the couple had entered into a valid marriage.

Low pleaded guilty to one count of conspiracy to commit marriage fraud and is set for sentencing Aug. 14.

If convicted, Sun and Garlock face a maximum penalty of five years in federal prison and a fine up to $250,000 on the conspiracy count, and a maximum of 10 years and a fine up to $250,000 on the other count. The Department of Homeland Security investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.

Nestor D. Duenas-Vasquez, 26, Glenpool, Okla., and Kyndal N. Upson, 24, Owasso, Okla., are charged with one count of possession with intent to distribute more than a pound of heroin. The crime is alleged to have occurred June 26, 2014, in Sedgwick County, Kan.

They initially were charged in a criminal complaint filed June 30, 2014. It is alleged Wichita police discovered the heroin when they stopped the two for a traffic violation June 26 near I-135 and 21st street.

If convicted, they face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $250,000. The Wichita Police Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

         
Ronnie Davone Matthews, 20, who is in custody in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 6, 2014, 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 Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

Nolberto Medina-Campos, 36, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine.  The crime is alleged to have occurred June 18, 2014, in Wyandotte County, Kan.

If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

Daniel Floyd Jenkins, 20, is charged with failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred starting in April 2014 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 Topeka Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney 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 registered sex offender was sentenced to 20 years in federal prison Monday for sending obscene material to a minor while he was a patient at Larned State Hospital, U.S. Attorney Barry Grissom said.

Christopher M. Case, 34, pleaded guilty to one count of transferring obscene material to a minor. In his plea, he admitted that he resided in the Sexual Predator Treatment Program of Larned State Hospital when he committed the crime. In mid-2011 he obtained access to a smartphone, which he shared with other residents. In December 2011 and January 2012 he learned that another resident of the program was using the smartphone to communicate with a 13-year-old female via email and chat. The girl was in Montana.

On January 16, 2012, Case used the smartphone to send the girl video of himself masturbating.

Grissom commended the Wichita Police Department=s Internet Crimes Against Children Task Force, Assistant U.S. Attorney Jason Hart and Assistant Attorney General Steve Karrer of Kansas Attorney General Derek Schmidt’s office for their work on the case.

WICHITA, KAN. A former employee was sentenced Monday to 21 months in federal prison for stealing at least $289,000 from a Wichita bank, U.S. Attorney Barry Grissom said.

Lisa Marie Evans, 43, Wichita, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted that from 2011 to 2013 she stole the money while working for Southwest National Bank in Wichita. She was responsible for balancing the bank vault on a daily basis. A surprise audit in April 2013 revealed the theft. Investigators examined security footage of the vault that showed Evans taking money from the vault and hiding it on her person.

Grissom commended the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.

WICHITA, KAN. – A federal indictment unsealed here today alleges a Wichita woman ran a prostitution business with as many as 20 escorts who accepted credit cards and offered discount coupons to loyal customers, U.S. Attorney Barry Grissom said.

Saundra J. Lacy, 60, Wichita, Kan., is charged with 27 counts of racketeering in promotion of prostitution. The indictment alleges Lacy operated an escort service called Jessie’s Primetime Entertainment at 304 S. Laura.

Lacy, whose business was licensed by the City of Wichita as an escort service, required escorts to carry condoms and to engage in sexual acts if a customer requested. She typically charged customers $160 for half an hour with an escort and $185 for an hour. She typically paid an escort $75 to $85 for a half hour date and $90 to $100 for an hour. Escorts who had a current escort license from the City of Wichita were paid more than those who had no license.

She also distributed discount coupons to escorts that entitled customers to a $10 discount at their next date and kept track of the serial numbers on the coupons in a coupon book.

She accepted payment for escorts’ services by cash, credit card and, occasionally, by check. She accepted MasterCard, Visa and Discover Card. Charges would appear as “massage therapy” provided by “Prime Time.” Credit card deposits into the Prime Time Account at Bank of America totaled approximately $39,189 in 2009, $25,601 in 2010, $40,851 in 2011and $32,770 from Jan. 1, 2012 to Aug. 27, 2012.

If convicted, she faces a maximum penalty five years in federal prison and a fine up to $250,000 on each count. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

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

WICHITA, KAN. – A former employee of a bank in Crawford County has pleaded guilty to stealing more than $2.5 million from the bank, U.S. Attorney Barry Grissom said.

Cynthia Bright, 55, Girard, Kan., pleaded guilty Wednesday to one count of bank fraud. In her plea, she admitted she stole the money over a period of 10 years while working as operations supervisor at Girard National Bank.

Bright used several different methods to steal the money. In some cases, she wrote checks on her own accounts and altered electronic bank records so the checks would clear but the money would not be taken out of her account. In other cases she removed paper checks and altered records to post checks to other accounts. She diverted funds from the bank’s accounts to her own accounts, and she wrote large counter checks to conceal losses.

She is set for sentencing Sept. 15. Both parties have agreed to recommend a sentence of 70 months in federal prison and an order of restitution for the full amount of the thefts.

Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.

KANSAS CITY, KAN. – A Johnson County man pleaded guilty Wednesday to conspiring to make false statements on a loan application while he was working as a senior vice president of a bank in Overland Park, U.S. Attorney Barry Grissom said today.

Michael W. Yancey, 55, Olathe, Kan., pleaded guilty to one count of conspiracy to make false statements on a loan application. In his plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., in Overland Park. Farmers Bank is headquartered in Great Bend, Kan.

Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kan. He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.

Sentencing will be set at a later time. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended  SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor and Assistant U.S. Attorney Jabari Wamble for their work on the case.

WICHITA, KAN. – A Wichita gang member was indicted Tuesday on a federal firearms charge that resulted from an investigation into a shooting incident, U.S. Attorney Barry Grissom said.

Jermall Campbell, 32, Wichita, Kan., is charged with one count of unlawful possession of ammunition following a felony conviction. The crime is alleged to have occurred June 14, 2014, in Wichita, Kan.

Campbell initially was charged in a criminal complaint filed June 27 in U.S. District Court in Wichita. It is alleged Wichita police were called June 14 to a report of a shooting at 7007 E. Harry in Wichita. They found shell casings in the parking lot. Witnesses reported seeing Campbell, who is a documented member of the Neighborhood Crips street gang, carrying a gun when he tried to enter the club before the shooting and wrestled with a security guard. Police served a search warrant at Campbell’s residence.

Campbell was convicted in a federal racketeering case filed in 2007 and sentenced to 64 months. Federal law prohibits a convicted felon from possessing a firearm.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

 
OTHER INDICTMENTS

Steven J. Meisel, 47, Wellington, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in May and June 2014 in Sumner County, Kan.

Meisel initially was charged in a criminal complaint filed June 19 in U.S. District Court in Wichita. It is alleged that a Wichita police detective working with the Exploited and Missing Child Unit and the Internet Crimes Against Children Task Force identified child pornography on Meisel’s computer. It was being shared over a peer-to-peer network.

If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge.

The Wichita Police Department, the Exploited and Missing Child Unit, the Internet Crimes Against Children Task Force and the Wellington Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.

Clint W. Cook, 30, Augusta, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 13, 2011, in Butler County, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jason Hart is prosecuting.

Steven Lee Fritts, 39, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 15, 2014, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

Angel Ivan Venegas, 20, Newton, Kan., and Lisa Ann Vela, 29, Newton, Kan., are charged with one count of possession with intent to distribute methamphetamine and one count of distributing methamphetamine. In addition, Venegas in charged with one count of carrying a firearm in furtherance of drug trafficking, one count of distributing methamphetamine, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in April and June of 2014 in Harvey County, Kan.

If convicted, they face a maximum penalty of 20 years and a fine up to $1 million on each of the possession and distribution charges, and he faces a penalty of not less than five years on the charge of possessing a firearm in furtherance of drug trafficking. The Newton Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

In a superseding indictment, Ernesto Romo, 48, Wichita, Kan., Christian Lopez, 26, Phoenix, Ariz., Baldomero Villa, 25, Laveen, Ariz., Andrew Crane, 34, Wichita, Kan., Shawn Keevan, 34, Cassville, Mo., and Michael Carter, 53, Kansas City, Kan., are charged with one count of conspiracy to distribute methamphetamine. In addition, they face other counts including distribution of methamphetamine, interstate travel in furtherance of drug trafficking, unlawful use of a telephone in furtherance of drug trafficking and possession with intent to distribute methamphetamine. The crimes are alleged to have occurred at various times from Feb 2013 to May 2014 in Sedgwick County, Kan.

Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than five years in federal prison and not more than 40 years and a fine up to $5 million.
Distribution, possession with intent to distribute methamphetamine: Not less than five years in federal prison and not more than 40 years and a fine up to $5 million on each count.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000 on each count.
Unlawful use of a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000.

The Drug Enforcement Administration and the Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.

Ernesto Ortiz, 22, San Elizario, Texas, is charged with one count of possession with intent to distribute cocaine. The crime is alleged to have occurred Feb. 14, 2014, in Lyon County, Kan.

If convicted, he faces a penalty of not less than five and not more than 40 years and a fine up to $5 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

William McManaman, 33, Wichita, Kan., and William McGreevy, 30, Wichita, Kan., are charged with one count of conspiracy to commit money laundering. In addition, McManaman is charged with conspiracy to distribute 50 pounds of marijuana. The crimes are alleged to have occurred beginning prior to 2011 in Sedgwick County, Kan.

 Upon conviction, the conspiracy to commit money laundering charge carries a maximum penalty of 20 years and a fine up to $500,000. The other charge carries a maximum penalty of five years and a fine up to $250,000. The Sedgwick County Sheriff’s Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

Gerardo Guerrero-Arizmendi, 51, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found May 29, 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. Enforcement and Removal Operations for Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Arturo Garcia-Olivas, 24, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 18, 2014, in Pratt County, Kan.

If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Enforcement and Removal Operations for Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

          Rene Urena-Cerrillo, 41, a citizen of Mexico, is charged with one count of unlawful possession of identification documents, two counts of aggravated identity theft, and one count of misusing a Social Security number. The crimes are alleged to have occurred in March and June 2014 in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on the charge of unlawful possession of identification documents, a mandatory two-year consecutive sentence on each count of aggravated identity theft, and a maximum penalty of five years and a fine up to $250,000 on the charge of misusing a Social Security card. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Jackson G. Nyambane, 31, who is not a citizen of the United States, is charged with one count of unlawful possession of identification documents, one count of making a false statement to Homeland Security and one count of counterfeiting a Social Security card. The crimes are alleged to have occurred in October 2011 in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on the unlawful possession of an identification charge, and a maximum penalty of five years and a fine up to $250,000 on each of the other counts. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

    
Tomas Serrato-Jaimes, 31, Las Vegas, Nev., is charged with one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute cocaine. The crime is alleged to have occurred June 20, 2014, in Hays, Kan.

If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the methamphetamine, and a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the cocaine charge. The Kansas Highway Patrol 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.

WICHITA, KAN. – A former resident of Lawrence was sentenced Tuesday to 87 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
         
Christian Curtis, 27, Hays, Kan., pleaded guilty to receiving and distributing child pornography. In his plea, he admitted that investigators found more than 1,000 images of child pornography on his computer.

The investigation began in March 2010 when an FBI agent in New York used a peer-to-peer file sharing network to downloaded child pornography from Curtis’ computer. Investigators followed an electronic trail to Curtis’ apartment in the 3100 block of Ousdahl Road in Lawrence. An examination of the computer showed Curtis had been chatting online, posing as a teenage girl. While posing as a girl, he solicited young boys to perform sexual acts.

His sentence will be followed by eight years on supervised release. He also was ordered to pay an $3,000 fine.

          Grissom commended the FBI and Assistant U.S. Attorney Kim Martin for their work on the case.

KANSAS CITY, KAN. – An Anderson County woman was sentenced today to 162 months in federal prison for taking part in a drug trafficking conspiracy that ended in a killing, U.S. Attorney Barry Grissom said.

Tracy Rockers, 24, Greeley, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In her plea, she admitted she was present Dec. 17, 2010, at a residence in Eudora, Kan., when traffickers killed Gregory Price for failing to pay drug debts and disposed of his body by hiding it in a refrigerator.

According to court documents, an investigation began in March 2010 when the Gardner Police Department and the Johnson County Sheriff’s Office began investigating traffickers who were selling methamphetamine in Gardner. In August 2011 the Kansas Bureau of Investigation identified Rockers as one of the traffickers. Working undercover, they made the first of several methamphetamine purchases from Rockers at a location in Eudora, Kan., on Aug. 24, 2011. Over a period of months, investigators identified more than a dozen traffickers.

According to court documents, on Dec. 17, 2010, several of the traffickers confronted Gregory Price at a residence in Eudora, Kan., about $800 they said he owed them. When Price refused to pay, the traffickers decided to take him to a rural location outside Desoto, Kan. They grabbed Price and attempted to pull him out the front door, but he resisted. Then they threw him into a door, causing him to collapse and begin “making gurgling noises,” according to court records. Rockers watched Price while the traffickers installed a camper shell on the back of a pickup they would use to transport Price. At some point, while lying on the floor, Price died. The traffickers put Price’s body inside a refrigerator and took it to the rural location near Desoto. More than a year later – April 19, 2012 – law enforcement found the refrigerator with Price’s body inside.

Co-defendants include: Michael C. Redifer, 37, who was sentenced to 30 years.
Steven M. Hohn, 34, Gardner, Kan., who was sentenced to 30 years.
Michael C. Quick, 33, Eudora, Kan., who was sentenced to 20 years.
Ronnie D. Morlean, 30, Olathe, Kan., who was sentenced to 216 months.
Kerry Lee Randall, 43, who was sentenced to 180 months.
Keith Arney, 29, Fulton, Mo., who was sentenced to 173 months.
Robert Baitey, III, 39, Desoto, Kan., who was sentenced to 150 months.
Daniel Reynoso, 25, who was sentenced to 135 months.
Gregory L. Renft, 40, who was sentenced to 10 years.
Rebecca L. Zehring, 39, Desoto, Kan., who was sentenced to 105 months.
Jordan R. Noble, 24, Eudora, Kan., who was sentenced to five years.
Dustin Cook, 39, who was sentenced to 52 months.
Danny Marlin, 42, who was sentenced to four years.

 Grissom commended the Gardner Police Department, the Johnson County Sheriff’s Office, the Kansas Bureau of Investigation, the Drug Enforcement Administration and Assistant U.S. Attorney Terra Morehead for their work on the case.

TOPEKA, KAN. – A Lawrence man pleaded guilty Friday to a federal marijuana trafficking charge, U.S. Attorney Barry Grissom said.

Michael D. Landsness, 27, Lawrence, Kan., pleaded guilty to two counts of possession with intent to distribute marijuana. In court papers, Landsness admitted he was one of the distributors for a marijuana trafficking organization in Lawrence. The organization was the target of a federal investigation that began in November 2012. Over the course of the investigation, law enforcement seized about 44 pounds of marijuana and more than $193,000 in cash from the traffickers.

On April 3, 2013, investigators working undercover arranged to buy a pound of marijuana from Landsness for $3,000. The next day, officers stopped Landsness and found half a pound of marijuana in his car.

Sentencing is set for Sept. 12. He faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count.

Charged as co-conspirators are: Benjamin Johnson, 33, Lawrence, who is set for trial Sept. 9.
Dominick A. Howard, 20, Lawrence, Kan., who is awaiting trial.
Senator J. Christopher Hood, 26, Lawrence, who is set for jury trial Aug. 19.

 Grissom commended the Lawrence Police Department and Assistant U.S. Attorney Greg Hough for their work on the case.

WICHITA, KAN. – A Wichita man who sold an undercover buyer a pound of methamphetamine for $20,000 was sentenced Thursday to 121 months in federal prison, U.S. Attorney Barry Grissom said.

Patrick C. Hains, 39, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking.

In his plea, Hains admitted he was arrested Jan. 14, 2014, at Pelican Point Apartments, 2150 N. Meridian, after a Wichita police officer working undercover paid him $20,000 cash for a pound of methamphetamine. Investigators searched Hains’ residence in the 500 block of South Woodchuck and seized a shotgun that he kept behind the front door to protect himself during drug transactions.

Co-defendants include: Wyatt Leedy, 35, Wichita, who is awaiting trial.
Jose Ramon Montelongo-Castrejon, 28, Wichita, is set for sentencing Aug. 1.

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

KANSAS CITY, KAN. A Lawrence man pleaded guilty Tuesday to filing a false tax return, U.S. Attorney Barry Grissom said.

Bradley Stoneking, 30, Lawrence, Kan., pleaded guilty to making false statements in his income tax return for 2010. He falsely claimed federal tax withholdings on gambling winnings in the amount of approximately $330,000. In fact, the federal tax withholding on his gambling winnings was $300.

Sentencing is set for Sept. 8. He faces a maximum penalty of three years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Scott Rask for their work on the case.

TOPEKA, KAN. - Federal charges were filed Tuesday against twin brothers accused of a robbery in Topeka, U.S. Attorney Barry Grissom said.

Charles Lamar Steele, 23, Topeka, Kan., and Lamar Ray Steele, 23, Topeka, are charged with one count of robbery. A criminal complaint filed in U.S. District Court in Topeka alleges that on June 4, 2014, they robbed the Check Into Cash store at 3711 S.W. Plaza Drive in Topeka.

In court papers, it is alleged that Charles Lamar Steele entered the store brandishing a handgun. He grabbed a clerk by the wrist and forced her to the cash drawers. He demanded money and threatened to kill her if she did not comply. He struck her in the head with the gun, forced her to front door and told her to stay on the ground and keep her head down until he was gone.

Surveillance photos from the robbery showed another man talking on a cell phone while holding the front door open at the time Steele entered the store. Investigators identified the man with the phone and used phone records to determine that at the time of the robbery he was connected to Charles Lamar Steele’s phone number. Investigators also learned that Lamar Ray Steele had helped plan the robbery.

If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commend the Topeka Police Department and the FBI for their work on the case. Assistant U.S. Attorney Jared Maag is prosecuting.

TOPEKA, KAN. – A former manager of a credit union in Lawrence pleaded guilty Tuesday to embezzling more than $93,500, U.S. Attorney Barry Grissom said. She also admitted allowing a teller to steal more than $81,000 from the credit union.

Karolyn J. Stattelman, 42, Topeka, pleaded guilty to one count of theft from a credit union. In her plea, she admitted the crime took place while she was manager of the Jayhawk Federal Credit Union at 2901 Lakeview Road in Lawrence, Kan. She manipulated credit union accounts for money orders, share drafts, ATM and returned checks in order to conceal the thefts.

She also allowed co-defendant Christi Marie Hout, who was a teller, to write checks on Hout’s personal and business accounts when she did not have sufficient funds to cover them. Hout has pleaded guilty to one count of theft of credit union funds.

Stattelman and Hout will be set for sentencing at a later time. They each face 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 Christine Kenney for their work on the case.

TOPEKA, KAN. - A Topeka man pleaded guilty Monday to giving another man a rifle and serving as a lookout while the gun was used in a liquor store robbery U.S. Attorney Barry Grissom said.

Aaron Roy Bundy, 27, Topeka, Kan., pleaded guilty to one count of aiding and abetting robbery. In his plea, he admitted that he gave a man who was staying in his apartment a .22 caliber rifle. On May 12, 2014, Bundy served as a lookout while the other man used the rifle to rob Patty’s Retail Liquor at 3705 S.W. Plaza Drive in Topeka.

Co-defendant Weston Brett Canfield is awaiting trial.

Bundy is set for sentencing Sept. 29. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.

Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag 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.

WICHITA, KAN. - A federal judge in Wichita cited a defendant’s long criminal record in sentencing him Monday to 10 years in prison on a firearm violation, U.S. Attorney Barry Grissom said.

Thomas Lee Wohlford, 32, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm following felony convictions.

U.S. District Court Judge Monti L. Belot said in court records that Wohlford “has been involved in the criminal justice system on a more or less continuous basis since age 15,” and “has no respect for the law.”

In his plea, Wohlford admitted he was arrested Feb. 11, 2014, at a Quick Trip at 1610 E. Lincoln. Police were called to the scene by a man whose car had been stolen. The man told police he had spotted Wohlford putting gas in the stolen vehicle. Police arrested Wohlford and seized a .22 caliber handgun from the car.

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

KANSAS CITY, KAN. – An Indiana man has been convicted on federal charges of using the Internet to attempt to sexually exploit a teenage girl in Lawrence, Kan., U.S. Attorney Barry Grissom said.

A federal jury in Kansas City, Kan., returned a verdict Wednesday convicting Brett J. Williamson, 37, Ft. Wayne, Ind., on three counts of attempting to produce child pornography and three counts of attempting to entice a minor to engage in unlawful sexual activity.

During trial, prosecutors presented evidence that Williamson posed as a 15-year-old boy on a teen dating site called Tagged.Com. He befriended the Lawrence girl and coaxed her to perform sexual acts in Skype video chats.

Sentencing will be scheduled at a later date. He faces a penalty of not less than 15 years and not more than 30 years and a fine up to $250,000 on each count of attempting to produce child pornography, and not less than 10 years and not more than life and a fine up to $250,000 on each count of enticement.

          Grissom commended the Lawrence Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.

KANSAS CITY, KAN. – A Kansas man pleaded guilty Tuesday to a federal charge of tax evasion, U.S. Attorney Barry Grissom said.

Kent Price, 57, Kingwood, Texas, pleaded guilty to one count of tax evasion. In his plea he admitted the crimes took place while he and co-defendant Donald Doleshal, 62, Driftwood, Texas, lived in Kansas and were partners and owners of Central States Underwater Contracting, Inc., (CSU), Central States Underwater, Limited (CSUL) and Pilecap, Inc. The companies inspected, surveyed and repaired underwater pipelines, piles, piers, docks and bridges.

In tax years 2002, 2003, 2004 and 2005, Price understated his personal  taxable income by a total of more than $340,000. The omission results in taxes due of $53,421.

Price also admitted CSU and Pilecap paid personal expenses for Price and Doleshal that were deducted as business expenses on corporate taxes returns and were not reported as personal income. CSU paid for a Corvette and Saab that were drive by Price and Doleshal’s respective spouses.

Price is set for sentencing Aug. 26. Doleshal pleaded guilty to one count of tax evasion. He is set for sentencing Aug. 19. In both cases, both parties have agreed to recommend a sentence of 36 months federal probation and full restitution of taxes owed.

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

KANSAS CITY, KAN. – A federal grand jury Wednesday returned an indictment charging a defendant in a state murder case with a federal firearms violation, U.S. Attorney Barry Grissom said.

Luis M. Murillo-Rosales, 25, who has been living in Kansas City, Kan., is charged with one count of unlawful possession of a firearm by a foreign citizen who is in the United States illegally. In court records it is alleged that on May 25, 2014, the Kansas City, Mo., Police Department responded to a report of a shooting in the 1600 block north of Universal Avenue in Kansas City, Mo. They found a deceased victim and recovered a spent 9 mm shell casing near the body. Witnesses reported seeing a man point a gun at the victim, fire one shot and then flee the scene.

Investigators served a search warrant at Murillo-Rosales’ home in the 1200 block of Ridge Avenue in Kansas City, Kan. They recovered a 9 mm handgun that allegedly was used in the shooting.

Murillo-Rosales was charged in state court in Jackson County, Mo., in connection with the shooting.

If convicted on the federal firearm charge, Murillo-Rosales 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 and the Kansas City, Mo., Police Department investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.

OTHER INDICTMENTS

John Hernandez, 40, Los Angeles, Calif., is charged in a superseding indictment with one count of conspiracy and eight counts of distributing various amounts of methamphetamine. The crimes are alleged to have occurred between Dec. 5, 2013, and May 13, 2014, in Lawrence, Kan.

If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the conspiracy count and some of the distribution counts. Sentences on other distribution counts range from not less than five years to not more than 20 years.

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

Jeremy Guy, 32, Sugar Creek, Mo., is charged with escaping from federal custody at the Grossman Community Corrections Center in Leavenworth, Kan. The crime is alleged to have occurred May 27, 2014.

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

Martin Salgado-Salgado, 39, a citizen of Mexico, is charged with one count of using false documents, four counts of aggravated identity theft, one count of making a false statement on a U.S. passport application, one count of misusing a U.S. passport and one count of making a false claim of U.S. citizenship. The crimes are alleged to have occurred in 2008, 2010, 2012 and 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Using false documents: A maximum penalty of 15 years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence on each count.
Making a false statement on a passport application: A maximum penalty of 10 years and a fine up to $250,000.
Misusing a U.S. passport:  A maximum penalty of 10 years and a fine up to $250,000.
Making a false claim of U.S. citizenship: A maximum penalty of three years and a fine up to $250,000.

The U.S. Department of State 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.

TOPEKA, KAN. – A former teller with a credit union in Lawrence pleaded guilty Tuesday to embezzling more than $81,000, U.S. Attorney Barry Grissom said.

Christi Marie Hout, 38, Lawrence, Kan., pleaded guilty to one count of theft of credit union funds. In her plea, she admitted the crime occurred while she was a teller with Jayhawk Federal Credit Union at 2901 Lakeview Road in Lawrence, Kan. She wrote checks on her personal account, and her husband’s business account, and made ATM debits when there were insufficient funds in the accounts to cover the transactions. She used credit union funds to pay personal expenses and she knew that the credit union manager was covering up the thefts.

Sentencing will be set at a later time. She faces a maximum penalty of 30 years in federal prison and a fine up to $250,000.

Co-defendant Karolyn J. Stattelman, 42, Topeka Kan., former manager of the credit union, is charged with one count of theft of credit union funds. She is set for a change of plea hearing June 17.

Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.

TOPEKA, KAN. – A Colorado man was sentenced Monday to two years in federal prison for a bank robbery in Lawrence, U.S. Attorney Barry Grissom said.

Matthew W. Headley, 38, Canon City, Colo., pleaded guilty to a Sept. 5, 2013, robbery at the US Bank, 1807 W. 23rd Street in Lawrence. In his plea he admitted he was wearing a golf hat and pajama pants when entered the bank and handed a teller a note saying, “100s and 50s now.” Officers of the Lawrence Police Department arrested him soon after that at a convenience store not far from the bank.

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

TOPEKA, KAN. – A Kansas firearms distributor was indicted today on federal charges of paying more than $1 million in bribes and kickbacks to executives of the company that manufactures Glock pistols, U.S. Attorney Barry Grissom said.

John Sullivan Ralph, III, 40, Olathe, Kan., who was owner of Global Guns & Hunting Inc. of Olathe, Kan., doing business as OMB Guns, is charged with one count of conspiracy, 11 counts of wire fraud and10 counts of money laundering.

The indictment alleges Ralph secretly paid executives of Glock to receive preferential treatment over other distributors of firearms, including directing potential customers to his company, giving his company priority access to limited products, steering government contracts and sales to government agencies of firearms and accessories to his company, and providing confidential Glock information to him.

The following co-defendants are charged with the same counts as Ralph:

James “Craig” Dutton, 42, Acworth, Ga., who was the Assistant National Sales Manager for Glock. The American headquarters of Glock, Inc., is in Smyrna, Ga.
Lisa Delaine Dutton, 42, Acworth, Ga., who was Craig Dutton’s wife, and who formed a company called Supreme Solutions LLC. She is alleged to have concealed payments of bribes and kickbacks.
Welcome D. “Bo” Wood, Jr., 65, Oviedo, Fla., who was the Eastern Regional Manager for Glock.
Paula Ann Wood, 63, Oviedo, Fla, who was Bo Wood’s wife, and who formed a company called Tropical Marketing & Consulting LLC. She is alleged to have concealed payments of bribes and kickbacks.

According to the indictment, most of Glock’s pistols are sold to independent firearm distributors who have contracts with Glock to resell its pistols. The allocation of Glock pistols was important because the demand frequently exceeded the supply.

Glock created two different sales channels for purposes of licensing its distributors. One channel was for sales to law enforcement agencies. Independent distributors were authorized to resell Glock pistols to law enforcement agencies within a specific geographic territory. The other channel was for the commercial market. Distributors of commercial market products were not restricted to a particular geographic area.

Glock used a Universal Product Code to differentiate pistols that were sold for resale to law enforcement agencies (blue label products) from pistols sold for resale to the commercial market (red label products). The price list for pistols intended for resale to law enforcement agencies is lower due to the fact law enforcement agencies routinely buy in bulk and are often subject to bidding processes.

The indictment alleges Wood and Dutton provided Ralph with equipment and software to allow him to convert firearms sold with the law enforcement discount (blue label) to firearms sold at the premium price to the commercial market (red label). Ralph is alleged to have sold at least 14,000 pistols to commercial buyers – including Cabela’s – which Glock sold to Ralph for resale to law enforcement agencies.

The indictment alleges that from 2003 to 2009 Ralph used the U.S. Postal Service to send and receive approximately 140 bribes and kickbacks that were delivered to defendants Lisa Dutton and Paula Wood. Between 2009 and 2011, the indictment alleges, Ralph used wire transfers to send approximately 80 bribes and kickbacks.

Upon conviction, the crimes carry the following penalties: Conspiracy: A maximum penalty of 30 years in federal prison and a fine up to $1 million. 
Wire fraud: A maximum penalty of 30 years in federal prison and a fine up to $1 million on each count.
Money laundering: A maximum penalty of 20 years and a fine up to $50,000 on each count.

The FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.

OTHER INDICTMENTS

Yong Jin Zhang, 55, who is in federal custody, and Yu Lan Su, 50, who is in federal custody, are charged with one count of transporting a person in interstate commerce for the purpose of prostitution, and one count of harboring a person for the purpose of prostitution at Life Long Foot Massage, also known as Asian Foot Relax Massage, at 5620 S. W. 29th Street; and 2955 S.W. McClure Road, No. 310, in Topeka, Kan. The crimes are alleged to have occurred from March 14 to May 21, 2014, in Topeka, Kan.

The defendants initially were charged in a criminal complaint filed May 22, 2014, in U.S. District Court in Topeka.

If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. Homeland Security Investigations investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.

Christopher B. Medlock, 28, who is in custody, is charged with one count of escaping from the Mirror Residential Reentry Center in Topeka, Kan. The crime is alleged to have occurred May 6, 2014.

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

Juan O. Whitaker, 32, who is in custody, is charged with one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred May 1, 2014, in Saline County, 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 Salina Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot 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 Topeka man was sentenced Monday to 57 months in federal prison in connection with an armed robbery in Lawrence, U.S. Attorney Barry Grissom said.

Justin S. Alcorn, 30, Topeka, Kan. pleaded guilty to one count of robbery. In his plea, he admitted that on June 1, 2013, he took part in a robbery in the parking lot of a McDonald’s restaurant at 4911 West 6th Street in Lawrence, Kan.

The victim went to the restaurant to sell the defendants two pounds of synthetic marijuana. After one of the defendants drew a gun, there was a fight and the victim ran into the restaurant to get help. While he was inside, Alcorn and the other defendants stole the synthetic marijuana and other items belonging to the victim.

Co-defendants are: Mario A. King, 35, Topeka, Kan., who was sentenced to 84 months.
Jesse J. Forbes, Jr., 39, Topeka, who is awaiting sentencing.

Grissom commended the Lawrence Police Department and Special Assistant U.S. Attorney Trent Krug for their work on the case.

WICHITA, KAN. – A Wichita man with a record of felony convictions was sentenced Monday to 210 months in federal prison for unlawful possession of a firearm, U.S. Attorney Barry Grissom said.

Juan Sabino Marquez, Jr., 38, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm after felony convictions. In his plea, he admitted that on July 26, 2013, officers of the Wichita Police Department stopped his vehicle for an expired tag. They found a Ruger .380 caliber handgun in the car. At the time, Marquez had eight prior felony convictions and was on parole for a gun violation.

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

KANSAS CITY, KAN. – Two Linn County men pleaded guilty Monday to federal firearms violations, U.S. Attorney Barry Grissom said.

Barry Walker, 70, Mound City, Kan., pleaded guilty to one count of allowing a convicted felon to possess firearms and ammunition. Jeffrey Nicholas, 47, Pleasanton, Kan., pleaded guilty to one count of possessing firearms and ammunition after a felony conviction.

In their pleas, they admitted that Nicholas, who had been convicted of a felony drug charge in Clark County, Nevada, worked selling firearms at Big Bear’s Gifts & Pawn Shop in Pleasanton, which was owned by Walker. Walker is the former Linn County Sheriff.

The Bureau of Alcohol, Tobacco, Firearms and Explosives first became aware Walker was allowing Nicholas to handle firearms during a compliance inspection at Big Bear’s Gifts & Pawn Shop on Nov. 10, 2011. Walker was counseled about the violation and agreed to prevent Nicholas from having any further access to firearms.

During another compliance inspection at Big Bear’s in November 2012, Walker told investigators that Nicholas had not handled any firearms transactions and that Walker conducted all transactions related to firearms. Investigators obtained evidence, however, that Nicholas had conducted transactions involving firearms. They learned that Nicholas would handle firearms transactions and then leave the forms for Walker to sign.

At various times from May 11, 2013, to Aug. 14, 2013, undercover ATF officers purchased firearms from Nicholas at Big Bear’s.

Sentencing will be scheduled at a later date. The defendants face a maximum penalty of 10 years in federal prison and a fine up to $250,000.

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

WICHITA, KAN. – Four defendants appeared in federal Court in Wichita Friday on federal charges of conspiring to steal U.S. mail and commit bank fraud, U.S. Attorney Barry Grissom said.

The indictment alleges conspirators used sticky rodent traps to steal mail from U.S. mail boxes, including checks that had been placed in the mail. Conspirators cashed the stolen checks by adding another person’s name to the payee line, removing the name of the original payee and replacing it with another name, or manufacturing counterfeit checks using account information on the stolen checks.

A federal grand jury in Wichita indicted the following defendants:

Justin Anderson, 19, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, five counts of theft or receipt of stolen mail and two counts of bank fraud.

Jeremy Robinson, 35, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, three counts of theft or receipt of stolen mail, and one count of bank fraud.

Madison P. Allen, 19, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of bank fraud.

Jennifer R. Harper, 34, Wichita, one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of bank fraud and one count of aggravated identity theft.

Upon conviction, the crimes carry the following penalties:

Bank fraud, conspiracy to commit bank fraud: A maximum penalty of 30 years in federal prison and a fine up to $1 million.
Mail theft, conspiracy to commit mail theft: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to any other sentence and a fine up to $250,000.

The U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Office, the Wichita Police Department and the Derby Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

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

WICHITA, KAN. -- Craig E. Applebee, 59, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on May 15, 2014, he robbed the Credit Union of America at 212 S. Ridge Road in Wichita.

Court documents allege he entered the credit union at about 3:22 p.m. wearing a black ball cap and dark hooded sweatshirt. He gave a teller a note demanding money. A teller put a GPS tracking device in a bag with the money. Wichita police stopped Applebee’s car near 3700 W. Central less than 15 minutes after the robbery.

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

OTHER INDICTMENTS

Weston Brett Canfield, 27, who is in federal custody, is charged with one count of robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm after a felony conviction.

The indictment alleges that on May 12, 2014, he brandished a firearm when he robbed Patty’s Retail Liquor at 3705 S.W. Plaza Drive in Topeka.

If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on the bank robbery charge, not less than seven years and a fine up to $250,000 on the charge of brandishing a firearm during a robbery, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm charge.

The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

Antonio Carrillo, 45, is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 11, 2014, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

Jorge Goerne Canales, 54, El Paso, Texas, is charged with one count of making a false statement to a federal investigator. The crime is alleged to have occurred April 8, 2014, in Johnson County, Kan.

 If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

Zeke Mills, 32, Wichita, Kan., is charged with four counts of unlawful possession of ammunition after a felony conviction, two counts of unlawful possession of an unregistered firearm and four counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in March and April 2014 in Sedgwick County, Kan.

Upon conviction, the crimes carry the following penalties: Unlawful possession of ammunition, unlawful possession of firearms: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of unregistered firearms: A maximum penalty of 10 years and a fine up to $10,000.

The Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives 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.

TOPEKA, KAN. – Two men were sentenced Tuesdayfor robberies at Topeka businesses, U.S. Attorney Barry Grissom said.

Quartez Norwood, 32, Topeka, Kan., was sentenced to 180 months in federal prison. He pleaded guilty to two counts of robbery and one count of brandishing a firearm during a robbery.

Henry Lavelle Davis, 41, Topeka, Kan., was sentenced to 84 months in federal prison. He pleaded guilty to two counts of robbery

In his plea, Norwood admitted that:

• On July 29, 2013, he robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka.
• On Aug. 3, 2013, he robbed the Family Dollar at 2616 S.E. 6th Street in Topeka.
• On Aug. 3, 2013, he brandished a firearm during the robbery at the Family Dollar.

In his plea, Davis admitted that:

• On July 25, 2013, he robbed the Check Into Cash at 3711 S.W. Plaza Drive in Topeka.
• On July 29, 2013, he robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka.

Co-defendants include:

Xavier Leron Sims, 26, Topeka, Kan., who was sentenced to 35 months.
Robert Wayne Redmond, 42, Topeka, Kan., who is set for sentencing July 14.
Henry Earl Sirvira, 45, Topeka, Kan., who is awaiting trial.

Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag 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.

TOPEKA, KAN. - A former Kansas state legislator pleaded guilty Tuesday to defrauding Farmers and Merchants Bank of Colby, Kan., of more than $465,000, some of which he deposited in his campaign account, U.S. Attorney Barry Grissom said.

 Trent K. LeDoux, 40, Holton, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted he applied for three loans from the bank, falsely representing that he was going to use all the funds to buy cattle that would serve as the collateral for the loans. In fact, he used some of the money to pay off existing debts and to make contributions to his political campaign account.

Sentencing is set for Aug. 11. He 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 Richard Hathaway for their work on the case.

TOPEKA, KAN. - The former chief financial officer for a manufacturing firm in Emporia was sentenced Tuesday to four months home confinement for embezzling more than $265,927 from the company, U.S. Attorney Barry Grissom said. She also was ordered to pay full restitution.

Sandra Moore, 58, Emporia, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred beginning in 2008 while she was CFO of Sauder Custom Fabrication, Inc., in Emporia, Kan.

She devised a variety of schemes to divert money from her employer’s accounts to her own including:

• Making unauthorized transfers from the company’s disbursement account to her personal account at ESB Financial in Emporia.
• Issuing unauthorized checks and depositing them into her personal account.
• Issuing unauthorized checks to repay loans she obtained from her 401K account.

Using those methods, she embezzled a total of $265,927 from the company.

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

WICHITA, KAN. - A truck driver from Wichita was sentenced Thursday to 150 months in federal prison for transporting child pornography, U.S. Attorney Barry Grissom said.

Joshua David Bellah, 40, Wichita, Kan., pleaded guilty to one count of interstate transportation of child pornography. In his plea he admitted that on Oct. 22, 2013, he traveled from Oklahoma to Kansas with laptops containing several thousand images of minors engaged in sexually explicit conduct. He had previously used a variety of free email accounts to obtain and exchange child pornography while he was traveling as an over-the-road truck driver.

Grissom commended the Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.