District of Kansas
Press releases recorded for this federal judicial district.
Former Treasurer of Mayetta Fire DistrictSentenced for EmbezzlementRead the Press Release
TOPEKA, KAN. - The former treasurer of the Mayetta Rural Fire District #1 was sentenced Monday to 30 months in federal prison for embezzling from the district, U.S. Attorney Barry Grissom said. The defendant also was ordered to pay more than $427,000 in restitution.
At sentencing, U.S. District Judge Julie A. Robinson noted that the defendant created a dangerous situation by depleting fire department funds that should have been used to purchase fire equipment.
Richard P. Bontrager, 68, Holton, Kan., pleaded guilty to one count of embezzlement. In his plea, he admitted that in 2008 he began embezzling from the fire district by issuing checks with the forged signatures of members of the board of the fire district. The checks were made payable to R & S Services, a fictitious entity Bontrager created so he could deposit the fraudulent checks into his own account at Denison State Bank. From 2008 to 2012 he made approximately $427,042 in unauthorized transfers from the fire district’s accounts.
In addition, without the knowledge of the board of the fire district he falsified loan documents to obligate the fire district to monthly lease payments on a Polaris Ranger UTV and a 1988 Chevrolet 1-ton brush truck. He created false board minutes to make it appear the board had approved the lease payments.
Grissom commended the Jackson County Sheriff’s Office, the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.U. S. Attorney Barry Grissom to SpeakAt Civil Rights Symposium Wednesday at WSURead the Press Release
WICHITA, KAN. U.S. Attorney Barry Grissom will speak to open the U.S. Attorney’s Fourth Annual Statewide Civil Rights Symposium Wednesday, Aug. 13, 2014, at Wichita State University.
“Law enforcement has a key role to play in building a society that allows all people to fully realize their potential,” Grissom said.
A report on racial profiling produced by Wichita State University will be one of the highlights of the day-long conference, which is expected to draw civil rights advocates and law enforcement officers from across the state. Michael Birzer, Director of WSU’s School of Community Affairs, will speak on racial profiling and 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.
The conference will be held from 9 a.m. to 4 p.m. in Room 132 at 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. Panel members will include Hussam Madi, spokesperson for the Islamic Society of Wichita; Holly Weatherford, advocacy director for the American Civil Liberties Union of Kansas; Wade Moore, president of the Greater Wichita Ministerial League; and Thomas Witt, executive director of Equality Kansas.
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.Montgomery County Man Appears in Court on Child Porn ChargeRead the Press Release
WICHITA, KAN. A Montgomery County man appeared in federal court here today on a child pornography charge, U.S. Attorney Barry Grissom said.
Daniel Hosier, 34, Cherryvale, 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 March and July 2013 in Montgomery, 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 counts, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. The Montgomery County Sheriff’s Office and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Former Employee Pleads GuiltyTo Stealing $289,000 from A Wichita BankRead the Press Release
WICHITA, KAN. A former employee has pleaded guilty to embezzling 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.
Sentencing is set for June 30. She faces a maximum penalty of 30 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.Manhattan Physician Sentenced for Unlawfully Prescribing Prescription DrugsRead the Press Release
TOPEKA, KAN. A Manhattan, Kan., physician was sentenced Wednesday to five years in federal prison for unlawfully prescribing prescription drugs, U.S. Attorney Barry Grissom said.
Michael P. Schuster, 54, Manhattan, Kan., pleaded guilty to one count of conspiracy to distribute controlled substances.
In his plea, Schuster admitted the crime occurred from April 2007 to Aug. 2012, while he was doing business as Manhattan Pain and Spine at 1135 Westport Drive in Manhattan. To carry out daily operations at his clinic he employed up to 12 office staff members at a time, none of whom had lawful authority to distribute controlled substances. He directed and allowed staff members to distribute controlled substances to his patients using blank prescription pads he had signed in advance.
Investigators documented approximately 540 patients who received prescriptions for controlled substances while Schuster was out of his office, including times when he was traveling to Canada, Russia, South Africa, Uruguay, New York, Argentina, Chile, Paraguay, Brazil and Israel.
In addition to the prison sentence, Schuster agreed to pay restitution of $100,772 and a fine of $25,000. He also has agreed to forfeit his clinic building at 1135 Westport Drive, a 2012 Ford pickup and more than $11,000 contained in two bank accounts. He also agreed to a forfeiture money judgment of $400,000.
Furthermore, Schuster agreed to surrender his medical license, not to re-apply for a medical license in Kansas, to surrender his DEA registration number for prescribing controlled substances and not to re-apply for a DEA registration number.
According to court documents, the investigation began early in 2012 when the Riley County Police Department received reports that Schuster was issuing prescriptions for high dosages of scheduled drugs based on minimal or cursory physical examinations.
Grissom commended the Riley County Police Department; the FBI; the Department of Defense, Criminal Investigative Service (DCIS); the Department of Health and Human Services, Office of Inspector General (HHS-OIG); the Drug Enforcement Administration (DEA); the Department of Homeland Security - Homeland Security Investigations (DHS-HSI); the Diplomatic Security Service (DSS), Assistant U.S. Attorney Tanya Treadway, Assistant U.S. Attorney Jared Maag, and Special Assistant U.S. Attorney Robin Graham for their work on the case.Lawrence Man Charged with False ClaimAbout Taxes on Gambling WinningsRead the Press Release
KANSAS CITY, KAN. A Lawrence man has been charged with filing a false tax return, U.S. Attorney Barry Grissom said.
Bradley Stoneking, 30, Lawrence, Kan., was alleged to have made 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.
If convicted he faces a maximum penalty of three years in federal prison and a fine up to $250,000. The Internal Revenue Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment: Kansas Home Health Worker's BillsClaimed She Was Working up to 39 Hours A DayRead the Press Release
TOPEKA, KAN. - A Kansas City, Kan., woman working as a personal care attendant was indicted Wednesday on a federal charge that Medicaid paid more than $587,000 based on fraudulent bills she submitted, U.S. Attorney Barry Grissom and Kansas Attorney General Derek Schmidt announced.
Doris Betts, 54, Kansas City, Kan., was charged with six counts of health care fraud. The indictment alleged the crimes occurred while Betts was claiming to provide personal services, residential support, day support, and sleep cycle support for seven different Medicaid consumers through four different billing agencies since January 2008. Personal services include bathing, house cleaning, meal preparation, toileting, transferring and prompting patients to take medication.
The indictment alleges an analysis of Betts’ documentation of services showed:
- She claimed to be with two or more different clients at the same time.
- She claimed to provide services when clients actually were in the hospital.
- She claimed to provide services when she was at her own medical appointments.
- She claimed to provide services at different locations without any travel time between them.
The indictment alleges she documented more than 750 work days that exceeded 24 hours, the highest of which totaled 39.5 hours.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. Health and Human Services and Kansas Attorney General Derek Schmidt’s Medicaid Fraud Division investigated. Assistant Attorney General Stefani Hepford of the Kansas Attorney General’s Office and Assistant U.S. Attorney Tanya Treadway are prosecuting.
OTHER INDICTMENTS
Shaun Lee Kendall, 29, and Michael Richard Wilkins, 21, both of whom are being held in the Shawnee County Jail, are charged are charged with one count of carjacking. The indictment alleges that on Jan. 29, 2014, in Shawnee County, Kan., they used force against a victim to steal a 1999 Dodge Dakota truck.
If convicted they face a maximum penalty of 15 years and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Kyle B. Rains, 30, Park City, Kan., is charged with two counts of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in February and March 2014 in Sedgwick County, 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 counts, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Homeland Security Investigations, the Internet Task Force on Crimes Against Children and the Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Kevin L. Cline, 55, Minneapolis, Kan., and C&R Plating of Minneapolis, are charged with 20 counts of violating the Clean Water Act, one count of making false statements to the Kansas Department of Health and Environment, one count of failing to notify KDHE of changes to their wastewater pretreatment equipment, one count of failing to report a bypass of pretreatment equipment, and one count of illegally introducing pollutants into a sewer system.
The indictment alleges that pollutants from C&R Plating, a metal finishing business, were introduced into the sewer system of the City of Minneapolis, Kan.
If convicted, he faces a maximum penalty of three years in federal prison and a fine up to $50,000 per day of violation on 23 of the 24 counts. The charge of introducing pollutants into a sewer system carries a maximum penalty of five years in federal prison and a fine up to $250,000. The Environmental Protection Agency investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
Edith Misael Salas-Rangel, 27, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. She was found March 28, 2014, in Geary County, Kan.
If convicted, she faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.U.S. Attorney Barry Grissom to SpeakTo Students at Arkansas City High SchoolRead the Press Release
ARKANSAS CITY, KAN. U.S. Attorney Barry Grissom will speak to students at Arkansas City High School on Thursday.
Grissom will be speaking to instructor Scott Snavely’s Law, Public Safety and Security CTE classes at 10 a.m. Thursday, April 10, in the school auditorium. He will talk about his career as a lawyer and his work as U.S. Attorney for the District of Kansas.
Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.
Indictment: Wichita Man Robbed Same StoreTwo Times in Eight DaysRead the Press Release
WICHITA, KAN. - A federal grand jury in Wichita today returned an indictment charging a Wichita man with three robberies, including two only eight days apart at a Valero gas station, U.S. Attorney Barry Grissom said.
Ricky Price, Jr., 20, Wichita, Kan., is charged with five counts, including:
- Robbing the Valero gas station at 851 S. Meridian on Jan. 11, 2014.
- Robbing the Valero gas station at 851 S. Meridian on Jan. 19, 2014.
- Brandishing a firearm during the Jan. 19 robbery.
- Robbing the Harry Grocery and Smoke Shop at 324 W. Harry on Feb. 27, 2014.
- Discharging a firearm during the Feb. 27 robbery.
Upon conviction, the crimes carry the following penalties:
Robbery: A maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
Brandishing a firearm: Not less than seven years and a fine up to $250,000.
Discharging a firearm: Not less than 10 years and a fine up to $250,000.The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTS
Oscar R. Alvardo, 35, Downey, Calif.; Brayan A. Osuna-Gutierrez, 21; and Julio Sanchez, Jr., 19, Downey, Calif., are charged with one count of possession with intent to distribute approximately four kilograms of methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crime is alleged to have occurred March 17, 2014, in Sedgwick County, Kan.
An affidavit filed in the case alleges a Sedgwick County Sheriff Deputy stopped the men’s car on I-35. The drugs were discovered hidden beneath molding in the back of the vehicle.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $4 million on the possession charge, 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 Mona Furst is prosecuting.
Silvia Clemente-Rojo, 41, a citizen of Mexico, is charged with two counts of using false documents to be employed, seven counts of aggravated identity theft, two counts of misusing a Social Security number, three counts of making false statements to the U.S. government, one count of aiding the fraudulent production of an identification document, and one count of unlawfully re-entering the United States after being deported. She was found Feb. 27, 2014, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Using false documents: A maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
Aggravated identity theft: A mandatory consecutive two-year sentence and a fine up to $250,000.
Misusing a Social Security number, making a false statement to the U.S. government: A maximum penalty of five years and a fine up to $250,000.
Aiding the fraudulent production of an identification document: A maximum penalty of 10 years and a fine up to $250,000.
Unlawfully re-entering the United States; A maximum penalty of two years and a fine up to $250,000.The Kansas Department of Revenue and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Micha A. Scott, 25, Wichita, Kan., is charged with two counts of unlawful possession of firearms and ammunition after a felony conviction, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred March 12, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on each count of unlawful possession of a firearm after a felony conviction, and a penalty of not less than five years and a fine up to $250,000 on the other count. The FBI investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Colton Schalk, 24, Arkansas City, Kan., is charged with two counts of possession with intent to distribute methamphetamine, and three counts of unlawful possession of a firearm or ammunition after a felony conviction. The crimes are alleged to have occurred in December 2013 and February 2014, in Cowley County, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million on each drug count and a maximum penalty of 10 years and a fine up to $250,000 on each firearm charge. The Arkansas City, Kan., Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Alvin Harris, 55, Wichita, Kan., is charged with one count of possessing a stolen firearm, and one count of stealing a firearm from a federally licensed dealer. The crimes are alleged to have occurred March 25, 2014, in Sedgwick 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 maximum penalty of five years and a fine up to $250,000 on the theft charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jose Amador-Bonilla, 27, a citizen of Nicaragua, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found March 14, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jesus Guereque-Lozoya, 50, a citizen of Mexico, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found March 10, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Aaron Ramirez-Saucedo, 28, a citizen of Mexico, is charged with unlawfully entering the United States. He was found March 26, 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. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Topeka Man Sentenced for Robbery at Kaw Valley BankRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to two years in federal prison for robbing a Topeka bank, U.S. Attorney Barry Grissom said.
Cade Michael Sharples, 37, Topeka, Kan., pleaded guilty in U.S. District Court in Topeka to one count of bank robbery.
In his plea, he admitted that on Sept. 17, 2013, he robbed the Kaw Valley Bank at 3000 SE Croco Road in Topeka. Sharples gave the teller a letter saying, “I’m here to rob you. I have a gun. Do as I say and you won’t get hurt.” He left the bank with the money and walked to his car, which was parked in a stall at a carwash nearby. Police released surveillance video from the robbery and received tips leading them to Sharples. He was arrested in Council Bluffs, Iowa.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.Ottawa Woman Sentenced for Peddling Rx DrugsRead the Press Release
KANSAS CITY, KAN. – An Ottawa woman was sentenced Monday to 30 months in federal prison for peddling prescription drugs, U.S. Attorney Barry Grissom said.
Brandi Bivens, 32, Ottawa, Kan., pleaded guilty to one count of conspiracy to distribute Oxycodone, Hydrocodone, Methadone and Morphine. In her plea, she admitted she conspired with her mother and co-defendant, Connie Edwards, as well as other co-defendants, from November 2007 to February 2012 to distribute prescription drugs.
The investigation began when the Franklin County Drug Enforcement Unit received information that Edwards was selling prescription drugs in Ottawa. Investigators set up surveillance and observed Bivens and Edwards picking up prescriptions at pharmacies. Investigators made undercover purchases of prescription drugs from them. State prescription drug records showed that from 2009 to August 2010, Bivens received 1,056 Morphine tablets, 351 Hydrocodone tablets, 432 Oxycodone tablets and 1,520 Oxycontin tablets.
Co-defendants include:
Grissom commended the Ottawa Police Department, the Franklin County Sheriff’s Office, the Kansas Bureau of Investigation, the Kansas Attorney General’s Office and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Connie Edwards, who was sentenced to 300 months in federal prison.
Shirley Price, who was sentenced to 84 months.
Tamara Ledom, who was sentenced to 216 months.
Brittany Edwards, who was sentenced to 15 months.
Angela Mitchell, who was sentenced to probation for one year.Lawrence Physician, AuthorConvicted on Tax Evasion ChargesRead the Press Release
KANSAS CITY, KAN. –A federal jury today convicted a Lawrence physician and author of tax evasion, U.S. Attorney Barry Grissom said.
Mary C. Vernon, 61, Lawrence, Kan., was convicted on five counts of tax evasion. Vernon, who practiced in Lawrence and Shawnee, specialized in treating obesity. She authored a book with the late Dr. Robert Atkins titled, “Atkins Diabetes Revolution.” She also provided medical services and served as medical director for a number of nursing homes.
During trial, prosecutors presented evidence that she earned approximately $588,686 for services she provided in 2003 and 2004 to Atkins Nutritionals, Inc., a company that sold weight loss programs and products. From 2005 to 2008 she earned an additional $190,000 to promote Dr. Atkins’ nutritional theories.
From 1999 to 2007, the Internal Revenue Service attempted to collect taxes, interest and penalties that Vernon owed and failed to pay from 1991 through 2005. The IRS collected approximately $2 million in taxes, interest and penalties through levies and seizures.
In 2003, Vernon hired an attorney to create a corporation called Rockledge Medical Services. During trial, prosecutors presented evidence that Rockledge Medical Services was a sham corporation that Vernon used to avoid paying taxes.
She evaded paying incomes taxes for 2004, 2005, 2006, 2007 and 2008.
Sentencing will be set for a later date. She faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count.
Grissom commended the Internal Revenue Service, Matthew J. Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, and Assistant U.S. Attorney Chris Oakley for their work on the case.
U.S. Attorney Honors via ChristiFor Innovative Human Trafficking TrainingRead the Press Release
WICHITA, KAN. - Via Christi Health today received a special Community Service Award from U.S. Attorney Barry Grissom for its groundbreaking work training health care professionals to identify and assist victims of human trafficking.
“Human trafficking is a crime that hides in plain sight,” Grissom said. “Via Christi Health is leading the nation by training its health care professionals to recognize warning signs and offer victims assistance that could save lives.”
Via Christi’s human trafficking initiative already has trained more than 125 physicians, nurses and other frontline caregivers with a four-step protocol on what to look for and how to help human trafficking victims. Videos of the training are available online at:
http://www.via-christi.org/human-trafficking
“We are humbled and honored to receive this award,” said Jeff Korsmo, president and CEO of Via Christi Health. “Training our clinicians to recognize the warning signs of human trafficking so that we can help these victims is part of Via Christi’s mission to serve as a healing presence to the most vulnerable among us. The victims of this modern form of slavery need – and deserve – our help.”
Physicians, nurses and other health care workers are in a position to meet human trafficking victims who remain hidden from most of us. Victims may show up in emergency rooms seeking treatment for injuries, physical or sexual abuse and health problems. Whether they are being trafficked for commercial sex or other kinds of labor, they are most likely to seek help from health care professionals who recognize the warning signs and are trained in treating them as victims, not criminals.
Via Christi Health employees who received the award include: Nicole Ensminger, Sister Sherri Marie Kuhn, Joseph Akif, Tina Peck, Dr. Robert Stangl, Jennifer Rodgers, Kim Johnson, William “Skip” Hidlay, Deborah Wendt, Roz Hutchinson, Clint Schaefer, Tressie Maugans and Claire Hieger.
Grissom cited a report released earlier this month that was supported by a grant from the U.S. Department of Justice titled: “Estimating the Size and Structure of the Underground Commercial Sex Economy in Eight Major US Cities.”
http://www.urban.org/UploadedPDF/413047-Underground-Commercial-Sex-Economy.pdf
The report looked at the underground commercial sex economy in Miami, Dallas, Washington, D.C., Denver, Kansas City, Mo., San Diego, Seattle and Atlanta, which it estimated in 2007 totaled as much as $290 million. The report concluded that different forms of coercion and fraud are used by pimps to recruit, manage and retain control over victims. These forms include feigning romantic interest, emphasizing mutual dependency between pimps and trafficking victims, discouraging victims from giving away “sex for free” and promising victims rewards and material comforts they never see. The number of cases of pimping and sex trafficking currently being investigated and prosecuted, the study concluded, represents only a small fraction of the underground commercial sex economy.
Two Men Sentenced in Dodge City Gang Racketeering CaseRead the Press Release
WICHITA, KAN. – Two members of a Dodge City street gang were sentenced Monday in a federal racketeering case, U.S. Attorney Barry Grissom said.
Jayson Vargas, 31, Dodge City, Kan., was sentenced to 10 years in federal prison. Juan Torres, 23, Dodge City, Kan., was sentenced to one year and a day.
Vargas pleaded guilty to one count of unlawful possession of a stolen firearm. In his plea, he admitted that on Aug. 20, 2011, he was driving a car in pursuit of his former girlfriend, who was in another car. During the chase, he pointed a handgun at her. Officers of the Ford County Sheriff’s Office stopped Vargas’ car and arrested him. They seized a .45 caliber handgun.Torres pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. He admitted he was involved in an Oct. 4, 2008, incident in which two people were shot.
In his plea, Torres admitted he was a Diablos Viejos (DV) gang member associated with the Norteno street gang when he accompanied two co-defendants in an attack at the home of a member of the rival Sureno gang. On Oct. 4, 2008, Torres and two co-defendants gathered in a barn behind a house at 10770 Kettle Way near Dodge City, which was a hangout for the gang. Later that day, Torres and the two co-defendants drove to the home of Abel Hernandez, a known Sureno gang member, and Rumalda Hipolito. Outside the home, Hernandez?s brother and others were drinking beer. One of the Nortenos began harassing them and shouting Norteno slogans. After someone threw a beer bottle at the Nortenos? car, Torres and the two co-defendants drove away.
The three Nortenos obtained a firearm, an SKS or AK-47 style weapon and returned to Hernandez?s house, parking in an alley half a block away. After approaching the house on foot, co-defendant Gonzalo Ramirez discharged multiple rounds from the firearm. The gunshots hit the house, striking Abel Hernandez and Rumalda Hipolito. Hipolito suffered a gunshot wound to the arm. Hernandez suffered a gunshot wound to the leg. Investigators found 10 bullet holes in the house and recovered 20 shell casings at the scene. After the shooting, Torres and the two co-defendants returned to the house on Kettle Way, where they hid the car in the barn.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff's Office, the Kansas Bureau of Investigation, the Ford County Attorney's Office, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Topeka Man Sentenced in Lawrence Armed RobberyRead the Press Release
KANSAS CITY, KAN. – A Topeka man was sentenced Monday to 84 months in federal prison in connection with an armed robbery in Lawrence, U.S. Attorney Barry Grissom said.
Mario A. King, 35, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of armed robbery. In his plea, he admitted that on June 1, 2013, he used a .357 revolver to commit an armed robbery in the parking lot of a McDonald’s restaurant at 4911 West 6th Street in Lawrence, Kan.
The victim met King and another man at the restaurant in order to sell them two pounds of synthetic marijuana. During the meeting, King drew the gun and pointed it at the victim. The victim fought with King for control of the gun. The victim eventually broke free and ran into the restaurant to get help. While he was inside, the marijuana and other items belonging to him were stolen.
Co-defendants are:
Justin Alcorn, 30, Topeka, who is awaiting sentencing.
Jesse J. Forbes, Jr., 39, Topeka, who is set for jury trial May 19.Grissom commended the Lawrence Police Department and Special Assistant U.S. Attorney Trent Krug for their work on the case.
Indictment: Kansas City, Kan., Tax PreparerPrepared False Income Tax ReturnsRead the Press Release
KANSAS CITY KAN. - A tax preparer in Kansas City, Kan., was indicted today by a federal grand jury on charges of preparing false tax returns, U.S. Attorney Barry Grissom said.
Ahferom Goitom, 34, Kansas City, Kan., is charged with fourteen counts of preparing false tax returns. The indictment alleges that Goitom was a professional tax return preparer who worked in Kansas City, Kan., and was the manager of a franchise business that prepares tax returns. He used commercial tax preparation software at the business to file returns electronically with the Internal Revenue Service.
He prepared at least 34 Form 1040s containing false and fraudulent education credits, charitable deductions, medical and dental expenses, home mortgage interest deductions, gross receipts for a sole proprietorship business, expenses for a sole proprietorship business and deductions for rental real estate.
For example, count one of the indictment alleges Goitom filed a return for a taxpayer in calendar year 2009 claiming medical and dental expenses of $5,050; gifts to charity of $8,200; and job expenses and miscellaneous deductions of $5,821. He knew that in fact the taxpayer was entitled to claim medical and dental expenses of only $226, gifts to charity of approximately $2,000 and no job expenses or other miscellaneous deductions.
If convicted, he faces a maximum penalty of three years in federal prison and a fine up to $250,000 on each count. The Internal Revenue Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
OTHER INDICTMENTS
Lamar Lynch, 41, Kansas City, Kan., is charged with 13 counts of stealing government funds by filing false and fraudulent federal income tax returns and nine counts of aggravated identity theft. The crimes are alleged to have occurred in 2011 and 2012 in the state of Kansas.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count of filing a false tax return, and a penalty of not less than two years and a fine up to $250,000 on each count of aggravated identity theft. The Internal Revenue Service – Criminal Investigation Division, U.S. Secret Service and Housing and Urban Development – Office of Inspector General investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Randy A. Cornelius, 21, Kansas City, Mo., Allen J. Williams, 23, Kansas City, Mo., and Alvin J. Williams, 23, Kansas City, Mo., have been indicted on bank robbery and federal firearms charges.
A federal criminal complaint filed Feb. 28 in U.S. District Court in Kansas City, Kan., charged each of the defendants with one count of bank robbery in the Feb. 27, 2014, robbery of Inter-State Federal Savings at 8620 Metcalf in Overland Park, Kan. Today’s indictment adds a charge against each defendant of using a firearm during the robbery. In addition, Allen J. Williams is charged with one count of unlawful possession of a firearm after a felony conviction.
If convicted, the defendants face a maximum penalty of 25 years in federal prison and a fine up to $250,000 on the bank robbery charge, and a penalty of not less than seven years and a fine up to $250,000 on the charge of using a firearm in the robbery. In addition, the charge of unlawful possession of a firearm after a felony conviction carries a maximum penalty of 10 years and a fine up to $250,000. The Overland Park Police Department, the Kansas City, Mo., Police Department and the FBI investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Jose Angel Aquilera-Franco, 20, Bonner Springs, Kan., and Darin Glassburn, 44, are charged in a second superseding indictment with one count of attempted possession with intent to distribute methamphetamine. The crime is alleged to have occurred Dec. 5, 2013, in Kansas City, Kan.
In addition, Aguilera-Franco is charged with one count of distributing methamphetamine within 1,000 feet of St. Peter’s Catholic School in Kansas City, Kan., one count of distributing methamphetamine and one count of dealing in firearms without a federal license.
Upon conviction, the crimes carry the following penalties:
Distributing methamphetamine within 1,000 feet of a school: A maximum penalty of 40 years in federal prison and a fine up to $2 million.
Distributing methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.
Dealing in firearms without a license: A maximum penalty of five years and a fine up to $250,000.
Attempted possession with intent to distribute methamphetamine: Not less than 10 years and a fine up to $10 million.The U.S. Postal Inspection Service and the Kansas City, Kan., 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.
Topeka Man Pleads Guilty to Federal Gun ChargeRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty today to a federal gun charge, U.S. Attorney Barry Grissom said.
Troy A. Kurtti, 21, Topeka, Kan., pleaded guilty to unlawful possession of a firearm after a felony conviction. In his plea, he admitted he possessed a .25 caliber pistol when he was arrested July 15, 2013, at the Value Place Hotel in Topeka. Police were called by a manager who reported receiving a bad check as payment for a room. Kurtti was found hiding in a bathroom and the gun was found in a trash can where he hid it. He was prohibited by federal law from possessing a firearm because of prior convictions in Shawnee County District Court for possession of methamphetamine, eluding police and theft.
Sentencing is set for June 9. He faces 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 Richard Hathaway for their work on the case.Salina Man Pleads Guilty to Federal Gun and Drug ChargeRead the Press Release
TOPEKA, KAN. – A Salina man today pleaded guilty today to a federal gun and drug charge, U.S. Attorney Barry Grissom said.
Stephen M. Smith, Jr., 45, Salina, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted that he possessed a .40 caliber handgun when he was arrested Sept. 6, 2013, at his residence in Salina. Police, who were called to the residence by a Kansas State Parole officer, seized a distribution quantity of methamphetamine and the gun.
Sentencing is set for June 9. Both sides have agreed to recommend a sentence of five years in federal prison. Grissom commended the Kansas Department of Corrections, the Salina Police Department, the I-135/I-70 Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Mike Warner for their work on the case.Colorado Man Pleads Guilty to Bank Robbery in LawrenceRead the Press Release
TOPEKA, KAN. – A Colorado man pleaded guilty today to a bank robbery in Lawrence, U.S. Attorney Barry Grissom said.
Matthew W. Headley, 37, 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.
Sentencing is set for June 9. Both sides have agreed to recommend a sentence of 24 months in federal prison. Grissom commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Mike Warner for their work on the case.Wichita Woman Charged with Heroin TraffickingRead the Press Release
WICHITA, KAN. - Federal charges of heroin trafficking were filed today against a Wichita woman, U.S. Attorney Barry Grissom said.
Elease Childers, 28, Wichita, Kan., was charged in a criminal complaint filed in U.S. District Court in Wichita with one count of possession with intent to distribute heroin. The crime is alleged to have occurred March 11 at a residence in the 3900 block of West 17th in Wichita.
An affidavit filed in support of the complaint alleges that on March 11 Wichita police officers executed a warrant at the residence, where they arrested Childers and seized a package containing eight ounces of black tar heroin. Shortly before that, Childers had received the package, which was sent from Los Angeles and delivered by the U.S. Postal Inspection Service. Postal inspectors had detected the heroin when the package was inspected at the postal processing center at 7117 W. Harry.
If convicted, Childers faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
The U.S. Postal Inspection Service and the Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
Two Former Bank Employees Sentenced for Embezzlement, Staged RobberyRead the Press Release
TOPEKA, KAN. – Two former bank employees were sentenced today to five months in federal prison and five months in a halfway house for embezzling from a bank in Grant County, Kan., and helping stage a robbery to cover up the theft, U.S. Attorney Barry Grissom said.
Amber Gutierrez, 32, Ulysses, Kan., and Ashley Cravens, 29, Ulysses, Kan., each pleaded guilty to one count of theft from a bank. From 2008 to July 24, 2010, while Gutierrez was head teller, she and two co-defendants – including Cravens -- embezzled approximately $84,200 from Western State Bank in Ulysses, Kan. On July 24, 2010, they took part in a staged robbery. Subsequent to the staged bank robbery, Gutierrez and co-defendants embezzled another $24,450 from the bank.
Co-defendants are:
Grissom commended the FBI, the KBI, the Grant County Sheriff's Office, the Ulysses Police Department and Assistant U.S. Attorney Aaron Smith for their work on the case.
Hattie Wiginton, who is set sentencing April 4.
Linda Wise, who was sentenced to three years probation.Federal Charge Filed in Bank Robbery in Manhattan, Kan.Read the Press Release
TOPEKA, KAN. - Ronald David Brown, Jr., 39, who is in custody at CCA’s Leavenworth Detention Center, is charged with one count of bank robbery. The indictment alleges that on Nov. 27, 2013, he robbed the Kansas State Bank at 1101 Bluemont Avenue in Manhattan, Kan.
If convicted, he faces a maximum penalty 20 years in federal prison and a fine up to $250,000. The Lenexa Police Department, the Riley County Police Department and the Federal Bureau of Investigation investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
OTHER INDICTMENTS
John Wesley Zollicoffer, 42, who is in custody in Shawnee County, is charged with one count of commercial robbery. The indictment alleges that on Jan. 29, 2014, he robbed the Kwik Shop at 1700 S.W. Boulevard in Topeka, Kan.
If convicted he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Juana Guerrero-Lopez, 55, Edwardsville, Kan., is charged with unlawfully re-entering the United States after being deported. She was found Feb. 6 in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
John M. Noel, 58, Wichita, Kan., is charged with two counts of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in March 2014 and November 2013 in Sedgwick County, Kan.If convicted, he faces a maximum penalty of 40 years in federal prison and a fine up to $2 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Luis Velasquez, 35, Compton, Calif., is charged with one count of possession with intent to distribute methamphetamine and one count of traveling from California to Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred March 10 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the charge of possession with intent to distribute, and a maximum penalty of 5 years and a fine up to $250,000 on the other charge. The Wichita Police Department, 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.
Johnson County Tax Preparer Pleads Guilty to Filing False Tax Return, Wire FraudRead the Press Release
KANSAS CITY, KAN. - A tax preparer in Johnson County pleaded guilty today to federal tax fraud charges that cost a Kansas company more than $744,000, U.S. Attorney Barry Grissom said.
John M. Moore, 52, Lenexa, pleaded guilty to one count of filing a false tax return and one count of wire fraud. In his plea, he admitted a company he owns, Accent Payroll Services (APS), was hired to provide payroll processing services for Tytan International L.L.C. of Lenexa, Kan. From 2008 to 2010, APS was responsible for paying the wages of Tytan’s employees, withholding employment taxes, filing Tytan’s employment tax returns on Internal Revenue Service form 941 and paying withheld employment taxes to the IRS.
Moore transferred more than $2 million in employment tax withholdings from Tytan’s bank account to his company’s bank account. However, he only paid the IRS approximately $1.3 million. To keep Tytan from receiving notices from the IRS that taxes were not paid, Moore gave the IRS an address for Tytan at a post office box he controlled.Sentencing is set for May 29. He faces a maximum penalty of 3 years in federal prison and a fine up to $100,000 on the charge of filing a false tax return and a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud count.
Grissom commended the Internal Revenue Service, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.Indictment: Proceeds of Bank FraudDeposited in Former Legislator's Political AccountRead the Press Release
TOPEKA, KAN. - A federal grand jury indictment returned here today charges a former Kansas legislator with bank fraud and alleges some of the money went into his political account, U.S. Attorney Barry Grissom said today.
Trent K. LeDoux, 40, Holton, Kan., is charged with three counts of bank fraud and two counts of money laundering. The alleged crimes took place in 2011 and 2012 while LeDoux was a member of the Kansas House of Representatives.
The indictment alleges LeDoux received three loans -- $106,600, $175,500 and $183,000 – from Farmers and Merchants Bank of Colby, Kan. He told the bank he was going to use all the funds to purchase cattle that would serve as collateral on the loans. In fact, he did not intend to use all the funds to buy cattle, but to pay off existing debts and to make contributions to his political account.
In two money laundering counts, the indictment alleges LeDoux transferred $15,000 on Dec. 31, 2011, and $12,000 on Aug. 1, 2012, to his campaign account.
The indictment seeks a monetary judgment of $465,100.
If convicted, he faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each count of bank fraud, and a maximum penalty of 10 years and a fine up to $250,000 on each count of money laundering. The FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.Wichita Store Owner SentencedFor Trafficking Counterfeit Designer GoodsRead the Press Release
WICHITA, KAN. - A woman who owns a retail store in Wichita was ordered to pay $25,000 and placed on five years federal probation for trafficking in counterfeit designer goods, U.S. Attorney Barry Grissom said. She also forfeited all the counterfeit goods that investigators seized from her store.
Glenda Sue Morgan, 55, Wichita, Kan., pleaded guilty to one count of trafficking in goods bearing counterfeit trademarks. In her plea, she admitted selling the counterfeit goods as “replicas” at her business, The Fabulous Store at 9131 E. 37th North in Wichita. On April 2, 2013, undercover law enforcement officers bought about $500 worth of such items including a “Chanel” bracelet and sunglasses, a “Michael Kors” purse and a “Prada” purse. When investigators served a search warrant they seized 400 replica items with a retail value of about $14,000.
In June 2009, more than $1 million in counterfeit goods was seized by Homeland Security Investigations from the same location. At the time, Morgan forfeited ownership of the items and they were destroyed, but she was not charged criminally.
Grissom commended Homeland Security Investigations, the Wichita Police Department and Assistant U.S. Attorney Brent Anderson for their work on the case.Wichita Man Sentenced for Distributing Child PornRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to five years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Amel Kevin Loop, 54, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that in November 2012 an FBI agent used the Internet to download images of child pornography from Loop’s computer. The images were transferred using an encrypted peer-to-peer network. The images included sexually explicit photos of a child no more than two years old.
Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.Federal Jury Convicts Junction City ManOn Murder, Drug ChargesRead the Press Release
TOPEKA KAN. – A federal jury today returned a verdict convicting a Junction City man of murdering a woman to keep her from giving information to federal law enforcement officers about his involvement in drug trafficking, U.S. Attorney Barry Grissom.
Marcus D. Roberson, 32, Junction City, Kan., was convicted on the following charges:
- One count of murder in the March 3, 2010, shooting of Crystal K. Fisher.
- One count of conspiracy to distribute crack cocaine.
- One count of conspiracy to distribute powder cocaine.
During trial, prosecutors presented evidence that Roberson lured the 25-year-old Fisher to a location near an alley in central Junction City where he shot her four times at close range. Her body was found seated in the driver’s side of her vehicle in the 700 block of West 11th Street in Junction City. She had been shot four times. The murder weapon, a .40 caliber pistol, was found in a pond behind a Walmart in Junction City.
Prosecutors also presented evidence of Roberson’s involvement in a drug trafficking organization that distributed powder and crack cocaine in and throughout the Junction City area.
Sentencing will be set for a later date. He faces a maximum penalty of life imprisonment on the murder count as well as the drug counts, and a fine of up to $10 million on each of the drug counts.
Co-defendants include:
Grissom commended the Junction City Police Department, the Drug Enforcement Administration, Assistant U.S. Attorney Jared Maag and Assistant U.S. Attorney Mike Warner for their work on the case. Also assisting in the investigation were the Riley County Police Department, the Grandview Plaza Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation, the U.S. Army Criminal Investigations Command at Ft. Riley, the Dickinson County Drug Enforcement Unit, the Kansas Department of Wildlife and Parks Tourism and the Park City Police Department.
Kennin Dewberry, who was sentenced to 240 months in prison.
Virok D. Webb, who is awaiting trial.
Jamaica L. Chism, who is set for sentencing April 14.
Alisha A. Escobedo, who is set for sentencing April 21.
Megan N. Fuller, who is set for sentencing April 21.
Caress Jackson, who is set for sentencing April 21.
Keishana Johnson, who is set for sentencing April 21.Former Bank Employee SentencedFor Embezzling from Bank in Grant CountyRead the Press Release
WICHITA, KAN. – A former bank employee was sentenced Wednesday to three years federal probation for embezzling from a bank in Grant County, Kan., U.S. Attorney Barry Grissom said today. She was ordered to pay $24,450 restitution to the bank.
Linda Wise, 60, Ulysses, Kan., pleaded guilty to one count of theft from a bank. In her plea, she admitted that from late 2010 to March 2013 while she worked at Western State Bank in Ulysses, Kan., she embezzled money from the bank.
Subsequent to July 24, 2010, she conspired with fellow employees and co-defendants Ashley Cravens and Amber Gutierrez to steal money from the bank. From late 2010 to March 2013, the three stole a total of $24,450 from the bank.
Co-defendants are:
Grissom commended the FBI, the Kansas Bureau of Investigation, the Grant County Sheriff's Office, the Ulysses Police Department and Assistant U.S. Attorney Aaron Smith for their work on the case.
Amber Gutierrez, 32, Ulysses, Kan., who is set for sentencing March 13.
Ashley Cravens, 29, Ulysses, Kan., who is set for sentencing March 13.
Hattie Wiginton, 33, Ulysses, Kan., who is set for sentencing March 24.Topeka Man Sentenced to 6 YearsFor Possession of Stolen FirearmRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to 6 years in federal prison for possession of a stolen firearm, U.S. Attorney Barry Grissom said.
Bryan K. Carter, 33, Topeka, Kan., pleaded guilty to one count of possessing a stolen firearm. In his plea, he admitted that on Dec. 3, 2011, he was arrested by officers of the Topeka Police Department on an outstanding warrant. The gray Infiniti he was driving had been reported stolen and police impounded it.On Dec. 13, 2011, police received a tip that someone was planning to burglarize the police impound lot to retrieve a firearm that was hidden under the hood of the Infiniti. Police searched the car and found the gun, a .22 caliber pistol, before a burglary took place. Carter admitted he received the gun in exchange for narcotics and was aware the firearm has been stolen.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.Indictment: 8 Pounds of MethamphetamineHidden in Trunk of Women's CarRead the Press Release
WICHITA, KAN. - Two New Mexico women were indicted Tuesday on charges of bringing more than 8 pounds of methamphetamine to Wichita, U.S. Attorney Barry Grissom said.
Annabell Romero, 37, Tucumcari, N.M., and Pamela Y. Meier, 43, Tucumcari, New Mexico, were charged with one count of possession with intent to distribute methamphetamine and one count of traveling in interstate commerce in furtherance of drug trafficking.
They initially were charged in a criminal complaint filed in U.S. District Court in Wichita March 1. An affidavit in support of the complaint alleged that on Feb. 28 they were driving eastbound in the 21000 block of west US 54 when they were stopped by a deputy of the Sedgwick County Sheriff’s. Investigators found the methamphetamine in duct taped bundles inside four brown paper sacks that were hidden in the lining of the trunk. Investigators learned the two women were being paid to transport the drugs from Phoenix to Wichita.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million on the charge of possession with intent to distribute, and maximum penalty of five years and a fine up to $250,000 on the other charge. The Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
OTHER INDICTMENTS
Osiel Torres-Guerrero, 35, and Pedro Antonio Torres, 39, both in custody at the Leavenworth Detention Center of CCA, are charged with one count of possession with intent to distribute 3.8 pounds of methamphetamine. The crime is alleged to have occurred Feb. 20 in Wabaunsee County, Kan.
An affidavit filed in the case alleges the methamphetamine was found in their car when they were stopped by the Kansas Highway Patrol while driving eastbound on I-70 near mile marker 322 in Wabaunsee County.
If convicted, they face a penalty of not less than 10 years and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Luis Felipe Cortez-Parra, 23, Wichita, Kan., is charged with one count of possession with intent to distribute approximately 2 kilograms (more than 4.5 pounds) of methamphetamine. The crime is alleged to have occurred Oct. 10, 2013, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Jeremy L. Landon, 49, Garden City, Kan., and Crystal A. Castanada, 27, Garden City, Kan., are charged with one count of distributing methamphetamine and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Jan. 24 in Garden City, Kan.
If convicted, they face 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 Mona Furst is prosecuting.
Keenan R. Linneman, 33, Emporia, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction, one count of possession with intent to distribute marijuana, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Nov. 4 in Emporia.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge of unlawful possession of a firearm by a felon, a maximum penalty of 10 years and a fine up to $500,000 on the marijuana charge, and a maximum penalty of five years and a fine up to $250,000 on the other charge. The Lyon County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Gabriel Marceleno-Lopez, a citizen of Mexico,is charged with unlawfully re-entering the United States after being deported. He was found Feb. 25, 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 Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Marla R. McDonald, 25, Garden City, Kan., is charged with making false statements in order to receive about $17,500 in Social Security Administration child survivor’s benefits to which she was not entitled. The crime is alleged to have occurred Sept. 22, 2011, in Garden City.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Social Security Administration – Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
John William Kerbow, 45, Wichita, Kan., is charged with six counts of aggravated identity theft and six counts of attempted bank fraud. The indictment alleges he used counterfeit driver’s licenses and false checks to attempt to defraud Commerce Bank of Newton, Commerce Bank of Wichita, Intrust Bank of Wichita and Conway Bank of Wichita.
If convicted, he faces a mandatory two years in prison and a fine up to $250,000 on each identity theft count and a maximum penalty of 30 years and a fine up to $1 million on each count of attempted bank fraud. The U.S. Secret Service investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Wichita Area Physician SentencedOn Federal Firearm and Drug ChargesRead the Press Release
WICHITA, KAN. – A former Wichita area physician was sentenced Monday to a total of 75 months in prison on federal firearm and drug charges and a violation of federal supervised release, U.S. Attorney Barry Grissom said.
In November, a jury found Lawrence M. Simons, 57, Wichita, Kan., guilty on one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of controlled substances.
During trial, prosecutors presented evidence that in 2009 Simons, a former employee of the Schneider Medical Clinic in Haysville, Kan., pleaded guilty to two counts of unlawfully distributing controlled substances. In January 2010, Simons was sentenced to 24 months in federal prison to be followed by three years on supervised release.In April 2013 an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives learned that Simons had given a pistol to Steven Woodin, proprietor of S&F Bail Bonds in Wichita. Simons owed Woodin for bonding him out of jail on a $25,000 bond in a Sedgwick County District Court case involving a charge of making a criminal threat.
Prosecutors also presented evidence that on Aug. 7, 2008, Simons signed a Drug Enforcement Administration form surrendering his controlled substances privileges. On Aug. 21, 2009, Simons leased three storage units at the West Kellogg Stor-All where he stored personal property. Controlled substances later were found in the storage units including Fentanyl, Actiq, Lortab Elixer, Ketamine, Versed, Midazolam, Brevital Sodium, Diazepam, Stadol and Niravan.
The sentence includes 51 months on the firearms and gun charges and 24 months to be served consecutively for the violation of supervised release.
Grissom commenced the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
Butler County Man Pleads GuiltyTo Producing Child PornographyRead the Press Release
TKANSAS CITY, KAN. - An Augusta, Kan., man pleaded guilty Monday to a charge of producing child pornography, U.S. Attorney Barry Grissom said.
Kristopher K. Sims, 30, Augusta, Kan., pleaded guilty to one count of producing child pornography. In his plea, Sims admitted that on Nov. 20, 2012, he made a recording of a 12-year-old girl engaging in a sexual act. Sims was in Kansas and the girl was in New York. He used his computer and a video-chat service to engage in a video chat with her, which he recorded.
Grissom commended the Augusta Police Department, the Wichita Police Department’s Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Sims first met the victim when she was 11 years old via Facebook. He posed as a boy who was 15 or 16 years old. Over a period of months, he communicated with her in chats and video messaging. He persuaded her to engage in sexual acts, which he captured in live video feeds from her computer.
Sentencing is set for June 2. He faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000.U.S. Attorney, FBI Kick Off Public Corruption HotlineRead the Press Release
TOPEKA, KAN. – U.S. Attorney Barry Grissom and Special Agent in Charge Michael Kaste of the FBI’s Kansas City Office announced today they are asking for the public’s help in combating fraud and public corruption in Kansas.
The FBI has set up a toll-free public corruption hotline at 1-855-527-2847 (1-855-KCPCTIP) for reports from Topeka, Wichita and throughout the state of Kansas. Reports also can be emailed to [email protected].
“Crooked public officials undermine the public’s trust in our government,” Grissom said. “They dishonor the many honest and hard-working men and women who serve the public at all levels of government. With the FBI’s hotline, everyone can have a hand in fighting public corruption.”
Kaste said that the FBI already has received many tips with valuable information from the hotline and the email address, which were rolled out first in Kansas City in November.“In cases of public corruption the public’s help makes a significant difference, and the establishment of this hotline supplies the necessary tools to provide that help,” said SAC Kaste.
Kaste said the FBI’s top criminal priority is to address public corruption at all levels of government. Many times, these crimes are difficult to detect because of their secretive nature, and they are even more difficult to prove without the assistance of concerned citizens.
Accepting a bribe for awarding a contract, taking a kickback for providing a permit or inaction by law enforcement for payment are examples of public corruption. A violation of federal law, public corruption includes bribes, embezzlement, racketeering, kickbacks, and money laundering as well as wire, mail, bank, and tax fraud – all of which occur at the public’s expense.
http://www.fbi.gov/about-us/investigate/corruption
The hotline number will also be featured on Lamar billboards within the Topeka area. Details regarding the various types of public corruption investigated by the FBI can be found online at:Three Men Charged in Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – Three men were charged Friday in connection with a bank robbery in Overland Park, U.S. Attorney Barry Grissom said.
Charged with one count each of bank robbery are:
Randy A. Cornelius, 21
Allen J. Williams, 23
Alvin J. Williams, 23A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that on Feb. 27, 2014, the three men robbed Inter-State Federal Savings at 8620 Metcalf in Overland Park, Kan.
An affidavit filed in support of the complaint alleges the three men entered the bank at about noon. The first robber made his way behind the teller counter while the second robber confronted an employee in the lobby. The third robber pointed a dark colored handgun at another bank employee and ordered him into the lobby. The second robber pointed a handgun at the stomach of a teller, who gave him money from a cash drawer. The robbers put the money in a green canvas bag and left the bank.
Investigators traced the license tag of the car the robbers were driving to an address in Kansas City, Mo. Two of the defendants – Allen J. Williams and Randy A. Cornelius – were arrested near an apartment complex at 11315 Colorado Avenue in Kansas City, Mo.
If convicted, the defendants each face a maximum penalty of 25 years in federal prison and a fine up to $250,000. The Overland Park Police Department, the Kansas City, Mo., Police Department and the FBI investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. A criminal complaint merely contains allegations of criminal conduct.
National Award Honors Federal Prosecutor Tris Hunt in KansasRead the Press Release
KANSAS CITY, KAN. – Assistant U.S. Attorney Tris Hunt has been named Outstanding Prosecutor of the Year for his work with the High Intensity Drug Trafficking Area program, U.S. Attorney Barry Grissom said today.
The national award from the Office of National Drug Control Policy recognizes Hunt for his work with the Midwest HIDTA on a large scale investigation of methamphetamine trafficking that resulted in the prosecution of 17 individuals.
“Tris Hunt is an outstanding prosecutor,” said U.S. Attorney Barry Grissom. “He sets a high standard and he brings out the best in his colleagues.”
The award recognizes the prosecutor who has consistently developed and utilized an innovative or unique approach. Winners must demonstrate a commitment to the cooperative spirit of the task force approach, the timely development and application of legal tools and the arrest, prosecution and conviction of individuals engaged in illegal drug activities.
The award recognizes Hunt for his work with the Drug Enforcement Administration in Kansas City, Homeland Security Investigations and the Jackson County Drug Task Force, as well as many other law enforcement agencies.
The Executive Board of the Midwest HIDTA also recognized Hunt as the region’s Outstanding Prosecutor of 2013.
David Barton, Director of the Midwest HIDTA, said Hunt’s work has involved some of the more complex issues ever undertaken by the Department of Justice’s Criminal Division and the DEA-Investigative Technology section.
Wichita Maintenance Technician Sentenced for Stealing Equipment from EmployersRead the Press Release
WICHITA, KAN. – A Wichita maintenance technician was sentenced Monday to 16 months in federal prison for making more than $150,000 by selling equipment he stole from the companies where he worked. After completing his sentence he will serve three years on supervised release.
Mark A. Lankford, 45, Wichita, Kan., pleaded guilty in U.S. District Court in Wichita to two counts of wire fraud. In his plea, he admitted stealing equipment from two Wichita companies where he worked, Spirit Aerosystems and Fiber Glass Systems LP.
Lankford was employed as an equipment maintenance technician for Spirit Aerosystems in Wichita from October 2010 to Sept. 5, 2011. During that time he stole computer parts from Spirit with a total value of more than $466,559. He used email to offer stolen parts for sale mainly to individuals in Owing Mills, Maryland. On April 25, 2011, he offered for sale an Allen Bradley model 1785-LT programmable controller, an Allen Bradley model 1771-DLC, an Allen Bradley model 1772-LXP, an Allen Bradley model 1772-TB2 and a Siemens model 6FC5303-OAB20-1AAO, all stolen from Spirit. Law enforcement officers recovered items worth approximately $454,435, leaving a remaining loss of more than $12,123.
From March 2008 to Oct 2010, Lankford worked as a maintenance mechanic for Fiber Glass Systems in Wichita. He stole computer parts from the company with a total value of more than $41,268. He offered stolen parts for sale on eBay including an Allen Bradley Controllogix Processor 7 slot system stolen from the company.
Lankford obtained a total of more than $154,824 from selling stolen parts.
Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.Topeka Man Sentenced on Federal Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to federal prison on a firearm charge, U.S. Attorney Barry Grissom said.
Joseph S. Buschbom, 31, Topeka, Kan., was sentenced Thursday to 41 months in prison. Buschbom pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that he possessed a .380 caliber handgun on June 12, 2013, when drove into a driver’s license check lane being operated by the Topeka Police Department. He recognized one of the officers and said to him: “Give me a break.” Then he tried to drive away from the check lane with an officer partly inside in the car window. Buschbom yelled, “I can’t get stopped, I have a gun in my waistband.” Officers found later that the car was stolen and there was an outstanding warrant for Buschbom’s arrest.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.Wichita Man IndictedOn Charge of Attempting to Rob Dollar GeneralRead the Press Release
KANSAS CITY, KAN. - A Wichita man was indicted today on a federal charge of attempting to rob a Dollar General store, U.S. Attorney Barry Grissom said.
Emanuel Goines, 46, is charged with a Feb. 10, 2014, attempted robbery at Dollar General, 2020 E. 21st, in Wichita, Kan. Goines initially was charged in a criminal complaint filed Feb. 12 in U.S. District Court in Wichita. An affidavit alleges that on Feb. 10, 2014, officers were working on a special detail in response to an increase in commercial robberies. Two officers in an unmarked car saw Goines enter the Dollar General store at 2020 E. 21st North. When marked cars responded, Goines ran from the store. Officers found him hiding beneath a truck in the 2200 block of North Piatt.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
OTHER INDICTMENTS
Justin Johnson, 38, and Penny Johnson, 37, the owners of Timberview Construction in Lenexa, Kan., are charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
The indictment alleges they diverted the proceeds of a loan guaranteed by the Small Business Administration for purchases that were not part of the stated purpose of the loan. It also alleges they laundered proceeds of the crime through wire transfers to bank accounts they controlled.
If convicted, they face a maximum penalty of 30 years in federal prison and a fine up to $1 million on the bank fraud charge, and a maximum penalty of 10 years and a fine up to $250,000 on the money laundering charge. The Small Business Administration, the Internal Revenue Service, the Federal Deposit Insurance Corporation, the Federal Reserve Board – OIG, the U.S. Secret Service and the Office of the Special Inspector General for the Troubled Asset Relief Program investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
John Lee Cline, 48, Halstead, Kan., is charged with a Jan. 21, 2014, robbery of the Intrust Bank at 3932 W. 13th North in Wichita, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
Tomas Zepeda, Jr., 34, and Shawna Lynn Mathis, 31, are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Feb. 11, 2014 in Thomas County, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $1 million. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Thomas Lee Wohlford, 31, Wichita, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Feb. 11, 2014, in Sedgwick County, Kan.
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 Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Overland Park Man Sentenced to 11 Years for $5 Million Fraud SchemeRead the Press Release
KANSAS CITY, KAN. An Overland Park man was sentenced Wednesday to 11 years in federal prison for swindling banks and investors out of more than $5 million, U.S. Attorney Barry Grissom said today. In addition, he was ordered to pay more than $5.7 million in restitution.
Ronald D. Catrell, Overland Park, Kan., pleaded guilty to one count of bank fraud, one count of aggravated identity theft, one count of money laundering and one count of wire fraud.In his plea, Catrell admitted devising a scheme in which he defrauded Kansas City area financial institutions including Valley View Bank, Bank of the West and Marshall & Ilsley Bank by providing them with false financial information in order to obtain lines of credit and loans.
He obtained a $1.3 million line of credit from Valley View Bank in Overland Park, Kan., by providing false information that he had more than $279,000 in an account at Metcalf Bank when in fact his balance there was less than $2,200. He also provided false tax returns and financial statements to the bank. He arranged for a person calling himself “Bill Campbell” to call a loan officer at Valley View Bank to claim that Catrell had more than $2.7 million invested with him. During the conversation, the caller said he was in an office overlooking New York City at 244 Fifth Avenue on the 18th floor, Suite 1882. In fact, Catrell had only a rented mail box at that address and the building was only four stories.
Catrell borrowed $750,000 from Bank of the West in Lee’s Summit, Mo., by giving the bank much of the same fraudulent information he gave Valley View Bank.
He obtained a $1 million line of credit from M&I Bank for his company, Software4Biz Consulting using fraudulent documents.
Catrell also co-founded a company called BlueValley Capital Management, LLP. Partners in the venture invested $50,000 to start the fund. When soliciting investors, Catrell made false statements overstating the annual return of the partners’ investments. When one of the co-founders requested an audit, Catrell provided a report with false information. He also falsely claimed to have the ability to purchase pre-initial public offering stock in Facebook. At the time, Facebook was not a publicly traded company.
Grissom commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.Wichita Man ConvictedOn Federal Firearms ChargesRead the Press Release
WICHITA, KAN. - A Wichita man was convicted Tuesday on federal firearms charges, U.S. Attorney Barry Grissom said.
Michael R. Horn, 42, Wichita, Kan., was convicted on one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of ammunition after a felony conviction. During a jury trial, prosecutors presented evidence that on Sept. 16, 2013, Horn unlawfully possessed a Bersa .380 caliber handgun and 10 rounds of ammunition for the gun. Horn was prohibited by federal law from possessing a firearm because of a felony conviction in 2004 in Sedgwick County District Court on a charge of aggravated battery.
Sentencing will be scheduled at a later date. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. Grissom commended the Wichita Police Department and Assistant U.S. Attorney Mona Furst for their work on the case.
Crawford County Man Arrested on Federal Firearm ChargeRead the Press Release
WICHITA, KAN. - A man from Crawford County, Kan., was arrested Tuesday on federal firearm charges, U.S. Attorney Barry Grissom said.
James D. Russian, 56, Pittsburg, Kan., is charged in U.S. District Court in Wichita with one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Nov. 27, 2013, in Crawford County.
The indictment alleges Russian unlawfully possessed a 9 mm handgun, 82 rounds of 9 mm ammunition and eighteen 20 gauge shotgun cartridges.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge involving the handgun and a maximum penalty of five years and a fine up to $250,000 on the charge with the ammunition. The Crawford County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Missouri Man Sentenced to Federal PrisonFor Two Attempted Bank RobberiesRead the Press Release
KANSAS CITY, KAN. A Missouri man was sentenced Wednesday to 210 months in federal prison for two attempted bank robberies, including one in Anderson County, Kan., during which he exchanged shots with law enforcement officers, U.S. Attorney Barry Grissom said.
Daniel Lee Waddell, 29, Carthage, Mo., pleaded guilty to two counts of attempted bank robbery. In his plea, he admitted that on March 5, 2013, he and co-defendant Stephen Hudson drove to Kincaid, Kan., where they attempted to rob the Citizens State Bank at 201 North Commercial Street. Hudson parked the car near the bank. Waddell got out and pulled on the bank’s doors only to find them locked. Waddell returned to the car and the two drove away from the bank. When law enforcement officers pursued them, Waddell fired his gun at the officers before he and Hudson were taken into custody.Waddell also admitted that on July 2, 2012, he entered the Corner Stone Bank in Langan, Mo., armed with an SKS Chinese rifle. He walked up to a teller window and shouted: You’ve got five seconds to do what I say.” Bank employees dropped to the floor behind bullet proof glass and activated an alarm. Waddell fled the bank and drove away with Hudson at the wheel.
Waddell also told investigators he obtained the guns used in the bank robberies while assisting in the tornado cleanup in Joplin in May 2011.
Co-defendant Stephen Hudson is awaiting sentencing.
Grissom commended the Kansas Bureau of Investigation, the Anderson County Sheriff’s Office, the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.Crawford County Man Pleads Guilty to Collecting Millions from False Tax ReturnsRead the Press Release
TOPEKA, KAN. - A man from Crawford County, Kan., pleaded guilty Friday to receiving millions of dollars in refunds based on filing false federal tax returns, U.S. Attorney Barry Grissom said. In addition, the defendant agreed to an order of restitution of more than $4 million.
Jerold D. Fisher, 49, Arma, Kan., pleaded guilty to one count of filing a false federal tax return. In his plea, he admitted that from 2006 to 2009, while he was a registered agent for Fisher Alfalfa Farms, he prepared false federal tax returns both for himself and for his mother in order to receive tax refunds that were not owed to them.
In 2006, he started to test the tax system by filing false income tax returns claiming Fisher Alfalfa Farms had withheld taxes from his wages and paid them to the federal treasury. As a result, he fraudulently received a refund of $17,175. As he continued to fraudulently receive tax refunds without being detected, he increased the amount of his claims. By 2009, he fraudulently claimed withholding of more than $3.8 million on income of more than $8 million.
Sentencing is set for May 27. The parties have agreed to recommend a sentence of 36 months in federal prison. Grissom commended the Internal Revenue Service - Criminal Investigations Division and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Restaurant Owner Pleads GuiltyTo Employing Alien Illegally in U.S.Read the Press Release
WICHITA, KAN. – A Wichita restaurant owner and his wife pleaded guilty Wednesday to harboring a Chinese girl who worked at their restaurant, United States Attorney Barry Grissom said.
The owner, Yong “Tony” Lin, 33, Wichita, Kan., pleaded guilty to harboring an alien unlawfully in the United States and his wife, Zhuo Mei “Mandy” Weng, 29, Wichita, Kan., pleaded guilty to hiding the crime. Both charges are federal felonies.
The pleas were entered Wednesday afternoon before U.S. District Judge J. Thomas Marten, who set both defendants for sentencing on May 7. As part of their guilty pleas, the couple agreed to forfeit about $8,000 in cash seized by Homeland Security agents investigating the case. The money will go to employees who are owed back wages.
In September 2013, the Exploited and Missing Child Unit (EMCU) received a report that a minor teenager from China was being housed with other restaurant workers at a west Wichita apartment complex and that she also was employed at the World Buffet Grill, 2243 N. Ridge Road. With the assistance of the Wichita Police Department and Homeland Security Investigations, EMCU confirmed the reports and was able to place the minor elsewhere.
“More cases like this are coming to light,” Grissom said, where employers seek to exploit workers even if they are minors not authorized to work in the U.S. “Employers who hire persons they know or should know are not authorized to work or who are using false documents should expect to face criminal prosecution.”
Grissom commended the EMCU, the Wichita Police Department, Homeland Security Investigations and Assistant U.S. Attorney Brent Anderson for their work on the case.
An indictment was filed in the case Sept. 11 alleging that Lin and Weng harbored and employed at least three restaurant employees they knew were unlawfully in the United States. They often paid the employees in cash, failed to follow wage and hour guidelines, and failed to maintain I-9 employment eligibility verification forms, according to the indictment.Former Employee Pleads GuiltyTo Stealing Garmin GPS DevicesRead the Press Release
KANSAS CITY, KAN. – A man who worked for the Garmin Company in Olathe, Kan., pleaded guilty Tuesday to stealing boxes of GPS devices from the company, U.S. Attorney Barry Grissom said.
Terrence M. Heathington, 31, formerly of Olathe and currently of Atlanta, Ga., pleaded guilty to one count of mail fraud. In his plea, 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.
Sentencing will be set at a later date. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. 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., Apartment Managers Pay $640,000 to Settle False Claims AllegationsRead the Press Release
KANSAS CITY, KAN. – U.S. Attorney Barry Grissom announced today that Foley Family Property Management, Inc., a California company, has agreed to pay $640,000 to the United States to settle allegations that the company submitted false claims to the U. S. Department of Housing and Urban Development in violation of the federal False Claims Act.
The company, formerly doing business as Alpha Property Management, Inc., operates apartment complexes in Kansas City, Kan., including Terrace Pointe Apartments at 641 S. 71st Terrace. The settlement resolves allegations the company submitted false claims to HUD’s Section 8 multi-family housing program for Terrace Point tenants from November 2005 through January 2011. The government contended that the company submitted claims to HUD for foreign citizens who were not eligible for Section 8 assistance because they were not in the United States lawfully. A former assistant property manager at Terrace Point accepted counterfeit citizenship documents and falsely reported Section 8 eligibility in exchange for bribes from the tenants. Under the program, the HUD housing subsidy payments were made to the company.
In a separate case, the former assistant property manager, Mary Amador, and nine former tenants previously pleaded guilty to federal criminal charges.
The company denied the allegations and, according to the terms of the agreement, the company does not admit any wrongdoing.
“Today’s settlement demonstrates our continuing commitment to protect the integrity of federal programs. It is important that limited federal assistance resources be preserved for those who lawfully qualify and need them,” said U.S. Attorney Grissom.
“The settlement should send a strong message that the United States Department of Housing and Urban Development, Office of Inspector General, will aggressively investigate those who fail to exercise integrity in connection with HUD programs. Working in conjunction with the U.S. Attorney’s Office, we will use whatever means necessary - both civil and criminal - to isolate and punish individuals or companies that commit fraud against HUD’s programs and personally benefit from the fraud perpetrated at the expense of individuals qualified to receive housing assistance,” said David Barnes, Special Agent in Charge, HUD Office of Inspector General.
Grissom commended the U.S. Department of Housing and Urban Development, OIG; the Department of Justice Civil Frauds Section; and Assistant United States Attorney Jon Fleenor for their work on the case.
The claims resolved by the settlement are allegations only; there has been no determination of liability.Wichita Man Sentenced on Federal Gun ChargeRead the Press Release
KANSAS CITY, KAN. A Wichita man was sentenced Monday to 40 months in prison on a federal gun charge, U.S. Attorney Barry Grissom said.
Johnathan R. Rush, 29, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that on July 17, 2103, he and Brittny Adams-Humphrey drove to Lawrence, Kan. While in Lawrence, Rush was involved in a fight with two men. During a struggle, one of the men fell to the ground with a single gunshot wound.
Rush and Adams-Humphrey then drove to Topeka in her Pontiac Grand Am. During the trip, Adams-Humphrey threw several items out the window of the car, including a .45 caliber gun. The Shawnee County Sheriff’s Office stopped their car near 6th and Rice streets in Topeka. A deputy recovered the .45 caliber handgun about 100 yards from where the car was stopped. The gun was purchased by Rush two weeks before the incident. At the time, he was prohibited by federal law from possessing a firearm because of a 2005 felony conviction in Shawnee County District Court.
U.S. Attorney Barry Grissom prosecuted the case. He commended the Lawrence Police Department, the Shawnee County Sheriff’s Department and Special Assistant U.S. Attorney Trent Krug for their work on the case.
Salina Man Pleads Guilty to Federal Gun ChargeRead the Press Release
TOPEKA, KAN. A Salina man pleaded guilty Monday to a federal firearms charge, U.S. Attorney Barry Grissom said.
Kalun James Purucker, 22, Salina, Kan., pleaded guilty to one count of unlawful possession of a firearm. In his plea, he admitted that the Salina Police Department stopped a car in which he was a passenger on April 9, 2012. Police recovered a .380 caliber handgun and ammunition. At the time, Purucker was prohibited by federal law from possessing a firearm because of a prior felony conviction.
Sentencing is set for April 28. Both parties have agreed to recommend a sentence of between 37 and 46 months in federal prison. Grissom commended the Salina Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.Spring Hill Company Owners Sentenced to PrisonFor Harboring Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. - The owners of a framing company in Spring Hill, Kan., were sentenced Wednesday to federal prison for harboring undocumented workers, U.S. Attorney Barry Grissom said.
James Humbert, 45, owner of Advantage Framing Systems, Inc., was sentenced to a year and a day in federal prison.
Kimberly Humbert, 47, wife of James Humbert and co-owner of company, was sentenced to a year and a day in federal prison
Charles Stevens II, 51, brother of Kim Humbert and part-owner of the company, was sentenced to a year and a day in federal prison.The company provided local builders and contractors with engineered floor, pre-built wall panel, and roof truss systems, along with onsite framing erection labor.
Each of the three defendants pleaded guilty to one count of conspiracy to harbor illegal aliens for commercial advantage. In their pleas, they admitted:
- In March 2012, the U.S. Department of Homeland Security and the Internal Revenue Service received information that the owners of company engaged foreign citizens who were not lawfully present in the United States.
- To pay undocumented workers who were members of framing crews, the defendants devised a method of payment requiring crew leaders to obtain insurance. The company paid the crew leaders, who were responsible for paying the undocumented workers on their crews.
- The company paid approximately $4.6 million to framing crews while the defendants were aware that some of the crew leaders and their crew members were not lawfully present in the United States.
Grissom commended the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Former City Clerk in Havana, KSPleads Guilty to EmbezzlementRead the Press Release
WICHITA, KAN. A former city clerk for the city of Havana, Kan., pleaded guilty Wednesday to embezzling funds from the city and from her church, U.S. Attorney Barry Grissom said. She agreed to pay restitution of approximately $14,658 to the city of Havana and $44,568 to Cross Point Baptist Church.
Diana L. Cox, 67, Havana, Kan., pleaded guilty to one count of bank fraud and one count of wire fraud.
In her plea, she admitted embezzling $14,658 from the city of Havana while she was working as city clerk. On Aug. 18, 2011, she presented documents to the Arvest Bank in Caney, Kan., falsely stating that the Havana City Council had voted to change its policy to require only one signature on checks written for city business.
She also admitted that while she was treasurer of the Cross Point Baptist Church she devised a scheme to defraud the church of approximately $44,568. On Dec. 30, 2011, she caused the church to electronically transfer approximately $2,536 to Vanderbilt Mortgage and Finance to make a mortgage payment due on her daughter’s home.
Sentencing is set for April 16. She faces a maximum penalty of 30 years and a fine up to $1 million on the bank fraud count, and a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud count.
Grissom commended the FBI and Assistant U.S. Attorney Mona Furst for their work on the case.