District of Kansas
Press releases recorded for this federal judicial district.
Former CEO of failed bank sentenced to prisonRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 293 months in prison for using his former position as chief executive officer (CEO) of a bank to embezzle tens of millions of dollars in a cryptocurrency scheme which led the bank to fail at a complete loss of equity for investors.
According to court documents, Shan Hanes, 53, of Elkhart pleaded guilty to one count of embezzlement by a bank officer.
While the CEO of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas, Hanes initiated 11 outgoing wire transfers between May 2023 and July 2023 totaling $47.1 million of Heartland’s funds to a cryptocurrency wallet in a cryptocurrency scheme referred to as “pig butchering.” The funds were transferred to multiple cryptocurrency accounts controlled by unidentified third parties during the time HTSB was insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC absorbed the $47.1 million loss. Hanes’ fraudulent actions caused HTSB to fail and the bank investors to lose $9 million.
A federal judge ordered that restitution be finalized at a separate hearing within the next 90 days.
“Hanes’ greed knew no bounds. He trespassed his professional obligations, his personal relationships, and federal law. Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions,” said U.S. Attorney Kate E. Brubacher. “Today’s sentence is a measure of justice for the victims, and a statement that the U.S. Department of Justice will hold those accountable who violate positions of trust for their own gain.”
“Mr. Hanes, as the CEO of Heartland Tri-State Bank, held the trust and confidence of the community of Elkhart, KS, but he violated that trust. He attempted to benefit financially by embezzling funds from the bank. His idea to get rich quick, in all reality, was a pig butchering scheme. His involvement in this scheme ultimately led to the bank’s collapse. His job, the bank’s job was to protect its customers and identify fraudulent scams – not to participate in them,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office.
“As the CEO, the defendant had a duty to conduct business honestly but instead abused that trust and committed insider fraud, contributing to the failure of a bank and causing catastrophic losses to bank customers who relied on the bank for the safekeeping of their savings,” said Korey Brinkman, Special-Agent-in-Charge of FHFA-OIG’s Central Region. “We will continue to vigorously investigate criminal offenses involving frauds that impact the integrity, safety, and soundness of Federal Home Loan Banks and member banks. We are proud to partner with our colleagues and the United States Attorney’s Office with this investigation.”
“Shan Hanes was sentenced today for his role in a $47.1 million embezzlement scheme that ultimately caused Heartland Tri-State Bank to fail,” said Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) Kansas City Region. “We are pleased to join our law enforcement partners in bringing Mr. Hanes to justice, and we will continue to investigate and hold accountable bank insiders who violate their positions of trust and threaten to undermine the safety and soundness of our Nation’s financial institutions.”
“Today’s sentencing makes clear that bank executives who undermine the safety and soundness of community banks will be brought to justice,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners to achieve this result, and we thank the U.S. Attorney’s Office for prosecuting this case and holding Mr. Hanes accountable for his crimes.”
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board - Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General ((FHFA-OIG) investigated the case.
Assistant U.S. Attorney Aaron Smith prosecuted the case.
###
Inmate indicted for escapeRead the Press Release
A federal grand jury in Wichita, Kansas, returned an indictment charging a man with escaping from a federal detention center.
According to court documents, Lee Owen Hallford, 42, is charged with one count of escape from custody.
Hallford is accused of unlawfully leaving the custody of the Bureau of Prisons while at the Residential Reentry Center — Correctional Solution Group, LLC in Wichita. He was detained based on a conviction in the U.S. District Court for the Northern District of Oklahoma for assault with a dangerous weapon with intent to do bodily harm in Indian Country.
The U.S. Marshals Service is investigating the case.
Assistant U.S. Attorneys Lanny Welch and Aaron Smith are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Railroad contractors indicted for obtaining and selling stolen watchesRead the Press Release
KANSAS CITY, KAN. – Two Texas men made their initial appearances after a federal grand jury in Kansas City, Kansas, returned an indictment on charges related to stolen merchandise.
According to court documents, Gerald Ditz, 31, and Michael Alaniz, 35, both of El Paso, Texas, are charged with one count of conspiracy to transport stolen property, one count of interstate transportation of stolen property, one count of mail and wire fraud conspiracy, and one count of mail fraud.
Between May 2023 and May 2024, Ditz and Alaniz are accused of using their employment at a freight-contracting company that serves a train station in Santa Teresa, New Mexico, to unlawfully obtain Garmin brand watches that were in transit to Garmin’s warehouse in Olathe, Kansas. Ditz and Alaniz allegedly sold dozens of the stolen Garmin watches over the Internet to unwitting buyers.
According to the indictment, in addition to the watches allegedly associated with or sold by Ditz and Alaniz, other watches stolen from the Garmin shipping container have registrations that appear to be connected to more than a dozen individuals (approximately fifteen percent of the workforce) assigned or formerly assigned at the Santa Teresa train station.
Ditz made his initial court appearance on July 29, 2024, before a Magistrate Judge in the Western District of Texas. Alaniz made his initial court appearance July 30, 2024, before a Magistrate Judge in the Western District of Texas.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Kansas Man Pleads Guilty to Brandishing Gun and Using Death Threats and Racial Slurs to Intimidate Two Black Children and an AdultRead the Press Release
A Kansas man pleaded guilty today to two counts of interference with federally-protected activities, two counts of interstate threats and one count of interference with housing.
Austin Schoemann, 30, of Wichita, admitted during his plea hearing that, on July 27, 2022, he brandished a firearm and used racial slurs in order to threaten two Black juveniles while they were entering a QuikTrip gasoline station, and that he also used his firearm to threaten a Black adult who intervened to support the juveniles.
“This defendant committed serious hate crimes when he used guns and death threats to terrorize two Black children and an adult who came to their aid,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant’s hate-fueled crime spree continued when he made threats to a white woman and her family that he would shoot and kill any Black person visiting her home. Racially-motivated threats and violence, in any form, are unacceptable in our society. The Justice Department is committed to enforcing federal civil rights laws to protect crime victims targeted because of race.”
“Racially based violence and threats of violence should never be tolerated. This reprehensible behavior is illegal and subject to federal criminal prosecution,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “The Justice Department will defend civil rights and prosecute anyone who harasses and threatens people based on their race.”
“There is no place for race-based violence in the state of Kansas,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office. “Every individual is entitled to the fundamental right to live their lives without fear and intimidation based solely on their race. Today’s plea underscores the FBI’s commitment to investigating and preventing racially motivated crimes. These crimes have a wide-ranging impact and the FBI, along with our law enforcement partners, have no tolerance for these types of threats.”
Schoemann also acknowledged that, beginning in January 2022 and continuing through August 2022, he interfered with the federally protected housing rights of a white woman by making threats to hurt or kill any Black people who visited her home. Schoemann further admitted that he sent videos and messages to the woman’s family members and others in which he repeatedly threatened to shoot and kill Black people.
A sentencing hearing is scheduled for Oct. 16. Under the terms of his plea agreement, Schoemann faces a penalty of 63 to 84 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Kansas City Field Office and Wichita Police investigated the case.
Assistant U.S. Attorney Aaron Smith for the District of Kansas and Trial Attorney Thomas Johnson of the Civil Rights Division are prosecuting the case.
Florida businessman indicted for defrauding real estate developers out of millions of dollarsRead the Press Release
KANSAS CITY, KAN. – A Florida businessman made his initial appearance after a federal grand jury in Kansas City, Kansas, returned an indictment charging him with defrauding corporate clients in Kansas, Missouri, Utah, and Ohio by fraudulently inducing them to enter loan agreements to finance construction projects and then misappropriating more than $4 million in deposits made by the victims.
According to court documents, David Ingram, 72, of Sanford, Florida (previously of North Carolina), is charged with four counts of wire fraud.
Ingram is accused of making false representations to developers seeking loans for large-scale construction projects. Ingram represented that his company, AltosGroups, had lines of credit with major international financial institutions. Multiple times in 2019, Ingram required victims to wire deposits into AltosGroups bank accounts as a condition of obtaining financing, and he told them the deposits would be placed in dedicated escrow or reserve accounts. Instead, Ingram allegedly commingled most of that money with other funds and made unauthorized transactions including transfers to his and his wife’s bank accounts for personal use. One $3 million deposit was sent to a Mexican financial institution without the developer’s knowledge or authorization. AltosGroups then canceled the financing contracts with the developers without returning the deposits.
The defendant made his initial court appearance on July 30, 2024, in the Middle District of Florida. He is scheduled to appear before U.S. Magistrate Judge Teresa J. James of the U.S. District Court for the District of Kansas at 1:30 p.m. on August 14, 2024.
IRS Criminal Investigations and the U.S. Secret Service are investigating the case.
Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Tennessee man indicted in $1 million investment schemeRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City, Kansas, returned an indictment charging a Tennessee man with defrauding investors out of more than $1 million.
Alcides Roman, 65, of Lebanon, Tennessee, is charged with eight counts of wire fraud and four counts of money laundering.
According to court documents, Roman did business through Remain In Control, a Tennessee company. Roman is accused of soliciting individuals to invest in high-yield investment programs offered through his company. He allegedly obtained victims’ funds under false pretenses, failed to invest their money as promised, and misappropriated investment funds for his own and others’ benefit without the victims’ knowledge or consent.
The defendant made his initial court appearance before a U.S. Magistrate Judge in the U.S. District Court for the Middle District of Tennessee. He is scheduled to appear before U.S. Magistrate Judge Teresa J. James of the District of Kansas at 1:30 p.m. on August 9, 2024.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorney Ryan Huschka is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Eight defendants indicted in drug trafficking ringRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City, Kansas, returned an indictment for eight men on charges related to a drug trafficking ring in the Kansas City metropolitan area.
According to court documents, between July 2022 and June 2024, the defendants allegedly took part in a conspiracy to distribute large quantities of methamphetamine and cocaine.
The Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Jackson County Drug Task Force (JCDTF), the Kansas City, Kansas Police Department, the Kansas City, Missouri Police Department, and the Kansas Highway Patrol are investigating the case.
Assistant U.S. Attorneys Trent Krug and David Zabel are prosecuting the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service (USPIS), and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###North Korean Government Hacker Charged for Involvement in Ransomware Attacks Targeting U.S. Hospitals and Health Care ProvidersRead the Press Release
Note: View the indictment here and view cryptocurrency seizure affidavit here.
A grand jury in Kansas City, Kansas, returned an indictment on Wednesday charging North Korean national Rim Jong Hyok for his involvement in a conspiracy to hack and extort U.S. hospitals and other health care providers, launder the ransom proceeds, and then use these proceeds to fund additional computer intrusions into defense, technology, and government entities worldwide. Their ransomware attacks prevented victim health care providers from providing full and timely care to patients.
“Two years ago, the Justice Department disrupted the North Korean group using Maui ransomware to hold hostage U.S. hospitals and health care providers,” said Deputy Attorney General Lisa Monaco. “Today’s criminal charges against one of those alleged North Korean operatives demonstrates that we will be relentless against malicious cyber actors targeting our critical infrastructure. This latest action, in collaboration with our partners in the U.S. and overseas, makes clear that we will continue to deploy all the tools at our disposal to disrupt ransomware attacks, hold those responsible to account, and place victims first.”
“Rim Jong Hyok and his co-conspirators deployed ransomware to extort U.S. hospitals and health care companies, then laundered the proceeds to help fund North Korea’s illicit activities,” said Deputy Director Paul Abbate of the FBI. “These unacceptable and unlawful actions placed innocent lives at risk. The FBI and our partners will leverage every tool available to neutralize criminal actors and protect American citizens.”
“North Korean hackers developed custom tools to target and extort U.S. health care providers and used their ill-gotten gains to fund a spree of hacks into government, technology, and defense entities worldwide, all while laundering money through China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The indictment, seizures, and other actions announced today demonstrate the Department’s resolve to hold these malicious actors accountable, impose costs on the North Korean cyber program, and help innocent network owners recover their losses and defend themselves.”
“Today’s indictment underscores our commitment to protecting critical infrastructure from malicious actors and the countries that sponsor them,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “Rim Jong Hyok and those in his trade put people’s lives in jeopardy. They imperil timely, effective treatment for patients and cost hospitals billions of dollars a year. The Justice Department will continue to disrupt nation-state actors and ensure that American systems are protected in the District of Kansas and across our nation.”
“The Air Force Office of Special Investigations (OSI) will continue to work alongside our law enforcement partners to root out malicious actors who seek to degrade the Department of the Air Force’s ability to protect the nation,” said Brigadier General Amy S. Bumgarner, OSI Commander. “Multiple OSI units, including one of our newly established National Security Detachments, which were established to provide counterintelligence, law enforcement and analytical support to protect technology at the earliest stages of advanced research and development, provided support to this investigation.”
“While North Korea uses these types of cybercrimes to circumvent international sanctions and fund its political and military ambitions, the impact of these wanton acts have a direct impact on the citizens of Kansas,” said Special Agent in Charge Stephen A. Cyrus of the FBI Kansas City Field Office. “These actions keep our families from getting the health care they need, slowing the response of our first responders, endangering our critical infrastructure and, ultimately, costing Kansans through ransoms paid, lost productivity, and money spent to rebuild our networks following cyber attacks. Today’s charges prove these cyber actors cannot act with impunity and that malicious actions against the citizens of Kansas and the rest of the United States have severe consequences.”
“The indictment of individuals responsible for breaching U.S. government systems, regardless of their location, demonstrates the dedication of the National Aeronautics and Space Administration Office of Inspector General (NASA-OIG), the Justice Department, and our law enforcement partners to relentlessly investigate, prosecute, and hold accountable those who believe they can operate in the shadows,” said Assistant Inspector General for Investigations Robert Steinau of NASA-OIG.
According to court documents, Rim and his co-conspirators worked for North Korea’s Reconnaissance General Bureau, a military intelligence agency, and are known to the private sector as “Andariel,” “Onyx Sleet,” and “APT45.” Rim and his co-conspirators laundered ransom payments through China-based facilitators and used these proceeds to purchase internet infrastructure, which the co-conspirators then used to hack and exfiltrate sensitive defense and technology information from entities across the globe. Victims of this further hacking include two U.S. Air Force bases, NASA-OIG, and entities located in Taiwan, South Korea, and China. Related Andariel activity has been the subject of private sector reporting, and a cybersecurity advisory with updated technical indicators of compromise was published by the FBI, the National Security Agency, U.S. Cyber Command’s Cyber National Mission Force, the Department of the Treasury, the Department of Defense’s Cyber Crime Center, the Cybersecurity and Infrastructure Security Administration, and South Korean and United Kingdom partners today.
The Justice Department and the FBI are also announcing the interdiction of approximately $114,000 in virtual currency proceeds of ransomware attacks and related money laundering transactions, as well as the seizure of online accounts used by co-conspirators to carry out their malicious cyber activity. The FBI previously seized approximately $500,000 in virtual currency proceeds of ransomware attacks and related money laundering transactions. In addition to these actions, the Department of State announced today a reward offer of up to $10 million for information leading to the location or identification of Rim. The State Department’s Rewards for Justice program has a standing reward offer for information leading to the identification or location of any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities against U.S. critical infrastructure in violation of the Computer Fraud and Abuse Act.
Private sector partners are also taking other voluntary actions to limit the spread of Andariel-created malware. In partnership with the Department, Microsoft developed and implemented technical measures to block Andariel actors from accessing victims’ computer networks. Additionally, Mandiant is publishing research today that highlights its unique insights into Andariel’s tactics, techniques, and procedures. These actions by Microsoft and Mandiant were a significant part of the overall effort to secure networks, and they will help cybersecurity practitioners prevent, identify, and mitigate attacks from Andariel actors.
Maui Ransomware and Money Laundering
As alleged in the indictment, Rim worked for North Korea’s Reconnaissance General Bureau (RGB), a military intelligence agency, and participated in the conspiracy to target and hack computer networks of U.S. hospitals and other health care providers, encrypt their electronic files, extort a ransom payment from them, launder those payments, and use the laundered proceeds to hack targets of interest to the North Korean regime.
The Andariel actors used custom malware, developed by the RGB, known as “Maui.” After running the maui.exe program to encrypt a ransomware victim’s computer network, the North Korean co-conspirators would extort the organization by leaving a note with a cryptocurrency address for a ransom payment.
The Andariel actors received ransom payments in a virtual currency and then laundered the payments with the assistance of Hong Kong-based facilitators. In at least one case, these Hong Kong facilitators converted ransom funds from cryptocurrency to Chinese yuan. The yuan was then accessed from an ATM in China in the immediate vicinity of the Sino-Korean Friendship Bridge, which connects Dandong, China, and Sinuiju, North Korea.
Exfiltration of Sensitive Data from Companies and Government Agencies
Rim and his co-conspirators used ransom proceeds to lease virtual private servers that were used to launch attacks against defense, technology, and other organizations, and to steal information from them. Victims of this further hacking included U.S. defense contractors, two U.S. Air Force bases, NASA-OIG, South Korean and Taiwanese defense contractors, and a Chinese energy company. The Andariel actors obtained initial access to victims’ networks by exploiting known vulnerabilities that had not been patched by the victims, including the widespread Log4Shell vulnerability. (Additional tactics, techniques, and procedures are available in the joint cybersecurity advisory released today.) The Andariel actors stole terabytes of information, including unclassified U.S. government employee information, old technical information related to military aircraft, intellectual property, and limited technical information pertaining to maritime and uranium processing projects.
Assistant U.S. Attorneys Ryan Huschka and Chris Oakley for the District of Kansas and Trial Attorneys Neeraj Gupta and George Brown of the National Security Division’s National Security Cyber Section are prosecuting the case.
The FBI continues to investigate Andariel’s hacking and money laundering activities. The Air Force Office of Special Investigations, the Department of Defense Cyber Crime Center, and NASA-OIG provided valuable assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
View previous joint cybersecurity advisories from CISA here.
View previous joint cybersecurity advisories from Department of Defense here.
View previous cryptocurrency seizure announcement here.
Topeka man charged with embezzlementRead the Press Release
TOPEKA, KAN. – A Kansas man made his initial appearance before a judge after a federal grand jury in Topeka returned an indictment charging him with financial fraud.
Matthew Waits, 39, of Topeka is charged with one count of thefts concerning a program receiving federal funds.
According to court documents, between January 2023 and December 2023, Waits is accused of using his position as program manager and director of the Prairie Band Potawatomi Nation’s Diabetes Prevention Program to embezzle $5,000 or more in federal grant money.
The Federal Bureau of Investigation (FBI) and the U.S. Department of Health and Human Services - Office of Inspector General are investigating the case.
Assistant U.S. Attorney Jared Maag is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Kansas man sentenced for drug traffickingRead the Press Release
TOPEKA, KAN. – A Kansas man was sentenced to 300 months (25 years) in prison for charges related to drug trafficking and illegal firearms.
According to court documents, Christian Michael Woodruff, 33, of Topeka pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm by a convicted felon.
In February 2023, the Drug Enforcement Administration (DEA) received information that Woodruff was selling meth from his home in Topeka. Following an investigation, law enforcement executed a search warrant at Woodruff’s residence while he was there. Agents found 1,190.1 grams of meth that lab tests later revealed to be 98 percent pure as well as multiple guns, ammunition, and a silencer.
“This case is another example of the connection between drug trafficking and illegal possession of firearms. ATF will continue to prioritize keeping repeat violent offenders off our streets because it is a critical component of keeping our communities safe,” stated Gordon N. Mallory, Acting, Special Agent in Charge, ATF Kansas City. “It is illegal for convicted felons to possess guns, and we will vigorously investigate repeat offenders who continue to arm themselves. I’m grateful for the work our agents and partners put into this case. I hope with this sentence today the community will be a little bit safer.”
The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Shawnee County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Gregory Hough prosecuted the case.
###
Arizona man indicted for kidnappingRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging an Arizona man with kidnapping then holding a victim for ransom.
According to court documents, Martin Brandon Gillen, 26, of Phoenix, Arizona, is charged with one count of kidnapping, one count of transporting child pornography, one count of possession of child pornography, one count of sexual exploitation of a child (production), and one count of transportation for criminal sexual activity.
Homeland Security Investigations (HSI) is investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/pscOTHER INDICTMENTS
Stephen Barnhart, 58, of Wichita, was indicted on one count of possession of a firearm by a convicted felon and one count of possession of ammunition by a convicted felon. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is investigating this case. Assistant U.S. Attorney Matt Treaster is prosecuting the case.
James Arnold Martinez, 26, of Oklahoma was indicted on one count of cyberstalking a child, one count of sexual exploitation of a child, and one count of distribution of child pornography. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
Ruben Ortiz-Moreno, 35, of Wichita was indicted on one count of possession of a firearm by an illegal alien. U.S. Immigration and Customs Enforcement (ICE) is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Vice President of Kansas Company Pleads Guilty to Crimes Related to Scheme to Illegally Export U.S. Avionics Equipment to Russia and Russian End UsersRead the Press Release
Douglas Edward Robertson, 56, of Olathe, Kansas, the former vice president of KanRus Trading Company Inc., pleaded guilty today for his role in a years-long conspiracy to circumvent U.S. export laws by filing false export forms with the U.S. government and, after Russia’s unprovoked invasion of Ukraine in February 2022, continuing to sell and export sophisticated and controlled avionics equipment to customers in Russia without the required licenses from the U.S. Department of Commerce.
“Robertson, by his own admission, conspired to sell advanced U.S. avionics equipment to Russian customers in violation of U.S. law,” said Assistant Attorney General for National Security Matthew G. Olsen. “The Justice Department will not tolerate those who seek to undermine the effectiveness of export controls that protect critical U.S. technology and deter Russia’s aggression in Ukraine.”
“Robertson’s guilty plea is reflective of the strong evidence gathered against him by federal investigators and the solid case presented by federal prosecutors,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “Our nation is both proud and grateful to these men and women at the Department of Justice who seek to protect the United States and our national security interests from adversaries both foreign and domestic.”
“Those who seek to profit by illegally selling sophisticated U.S. technology to our adversaries are putting the national security of our country at risk and that cannot be tolerated,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “It is appalling that the defendant schemed to smuggle avionics equipment to customers overseas including Russia, a nation engaged in a long-running military conflict with Ukraine. The FBI will work with our partners to stop the illegal flow of sensitive U.S. equipment and technology to foreign adversaries.”
“You might think that smuggling sensitive U.S.-origin technology to Russia, including to their Federal Security Service (FSB), means we’re not in Kansas anymore. Unfortunately, in this case, we were,” said Assistant Secretary for Export Enforcement Matthew A. Axelrod. “We will continue to hold individuals everywhere, including those at the highest rungs of the corporate ladder, accountable when they violate our laws by lying on forms and transshipping items through third countries.”
According to court documents, as part of his guilty plea, Robertson admitted that between 2020 and when he was arrested in March 2023, he conspired with others – including co-defendants Cyril Gregory Buyanovsky of Lawrence, Kansas, and Oleg Chistyakov, aka Olegs Čitsjakovs, of Riga, Latvia, – to smuggle U.S.-origin avionics equipment to end users in Russia, as well as Russian end users in other foreign countries by, among other actions, knowingly filing false export forms and failing to file required export forms with the U.S. government. In these forms, Robertson and his conspirators lied about the exports’ value, end users, and end destinations.
Robertson further admitted that on at least one occasion in 2021, he, Buyanovsky, and Chistyakov smuggled a repaired Traffic Alert and Collision Avoidance System (TCAS) to the FSB by removing the FSB sticker from the device before sending the device to a U.S. company to be repaired and then exporting the TCAS back to the FSB in Russia. At the time, the FSB was sanctioned by the U.S. Department of Treasury’s Office of Foreign Assets Control for its interference in the 2016 U.S. Presidential Election.
Robertson further admitted that after Russia invaded Ukraine in February 2022 and the U.S. government tightened export controls concerning Russia, he, co-defendants Buyanovsky and Chistyakov, and other conspirators continued to purchase and export U.S.-origin avionics equipment to customers in Russia and took numerous steps to hide their illegal activity from law enforcement, including by lying to U.S. suppliers about the intended end users; shipping goods through intermediary companies in Armenia, Laos, the United Arab Emirates, and Cyprus; continuing to file false export forms with the U.S. government; and using foreign bank accounts in countries other than Russia, such as Armenia, Kazakhstan, Kyrgyzstan, Cyprus, the United Arab Emirates, and the Czech Republic, to promote their illegal export activity.
On Dec. 6, 2023, the U.S. Department of Commerce added many of the entities and individuals involved in KanRus and Robertson’s illegal export scheme to the Commerce Department’s Entity List as part of the U.S. government’s interagency efforts to dismantle Russian procurement networks designed to circumvent U.S. export controls and sanctions imposed in response to Russia’s invasion of Ukraine. The Entity List imposes specific license requirements on all listed individuals and entities.
In December 2023, Buyanovsky, the former President and owner of KanRus, pleaded guilty to conspiracy and money laundering and consented to the forfeiture of over $450,000 worth of avionics equipment and accessories, and a $50,000 personal forfeiture judgment.
On March 19, Chistyakov, a former KanRus broker, was arrested in Riga, Latvia, for his role in the illegal smuggling scheme. Chistyakov remains detained in Latvia pending extradition proceedings.
As a result of today’s guilty plea, Robertson faces a statutory maximum penalty of five years in prison for the conspiracy count, 20 years in prison for each of the two Export Control Reform Act counts, and 20 years in prison for the money laundering count. A sentencing hearing is scheduled for Oct. 3.
The FBI and the Department of Commerce’s Office of Export Enforcement are investigating the case. The Latvian authorities are assisting the investigation. The U.S. Customs and Border Protection provided substantial assistance.
Assistant U.S. Attorneys Scott Rask and Ryan Huschka for the District of Kansas and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing valuable assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Businesswoman sentenced for tax evasionRead the Press Release
KANSAS CITY, KAN. – A Missouri woman was sentenced to six months in prison followed by six months of home confinement after keeping money that her company collected as payroll taxes from employees instead of sending the funds the Internal Revenue Service (IRS) as required by federal law.
According to court documents, Chelli Payne, 59, of Raymore, Missouri, pleaded guilty to one count of failing to account for or pay over employment taxes.
A Family Tree Enterprises (AFTE), is a business in Olathe, Kansas, providing day and residential services to individuals with intellectual or developmental disabilities. AFTE withheld taxes from its employees' paychecks, including federal income taxes.
Based on her position with the company, it was Payne’s responsibility to oversee collecting and paying over employment taxes to the IRS on behalf of AFTE. In most quarters between the second quarter of 2015 and 2019, Payne failed to pay over the withheld employment taxes causing a tax loss to the IRS of $1,055,367.
A federal judge also ordered Payne to pay restitution in the amount of $1,055,367.
IRS- Criminal Investigation investigated the case.
Assistant U.S. Attorney Christopher Oakley prosecuted the case.
###
Atchison man charged with sex traffickingRead the Press Release
KANSAS CITY, KAN. – A Kansas man made his initial appearance after a federal grand jury in Kansas City, Kansas, indicted him on multiple charges related to sex trafficking multiple victims, including children.
According to court documents, Elijah Z. Haley, 21, of Atchison was indicted on two counts of sex trafficking of a child, two counts of sex trafficking accomplished by force, fraud, or coercion, two counts of transportation with intent to engage in criminal sexual activity, and two counts of transportation for illegal sexual activity.
The defendant made his initial court appearance before U.S. Magistrate Judge Angel D. Mitchell of the U.S. District Court for the District of Kansas.
The Federal Bureau of Investigation (FBI), Kansas Highway Patrol, Atchison, Kansas Police Department, and the Boone County, Missouri Sheriff’s Office investigated the case.
Assistant U.S. Attorney Audrey McCormick is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Former physician sentenced for operating a pill millRead the Press Release
WICHITA, KAN. – A former Kansas physician was sentenced to 120 months in prison following a jury trial conviction and a plea agreement based on charges for selling opioid prescriptions to customers without legitimate medical need for powerful pain medications.
According to court documents, Steven R. Henson, 63, of Wichita pleaded guilty to:
• two counts of conspiracy to dispense, distribute, and possess with intent to distribute controlled substances,
• eight counts of dispensing and aiding and abetting with possession with intent to distribute controlled substances,
• five counts of dispensing controlled substances, and
• six counts of money laundering.A jury previously convicted Henson of one count of making a false writing and one count of attempting to obstruct a court order, which were charges in relation to drug offenses.
Between July 2014 and August 2015, Henson admits to examining illegitimate pain patients at his clinic in Wichita and writing them prescriptions for oxycodone, methadone, and alprazolam in exchange for cash. He would typically meet his co-conspirator customers during non- business hours without staff present and charge $300 for the visit. These co-conspirator customers told Henson which controlled substances they wanted, and he would oblige with a prescription without conducting examinations, obtaining medical history, or determining if the requested medication was needed. Henson would often prescribe the highest possible strengths and high pill counts.
The Drug Enforcement Administration’s Tactical Diversion Squad, Newton Police Department, Wichita Police Department, Internal Revenue Service-Criminal Investigation Division, and the Johnson County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Katie Andrusak and Jason Hart prosecuted the case.
###
Former Boilermakers Union Chief of Staff Pleads Guilty to Racketeering ConspiracyRead the Press Release
A Missouri man pleaded guilty today to racketeering conspiracy in connection with his involvement in serious financial misconduct at an international labor organization.
According to court documents, Tyler Brown, 44, of Kansas City, Missouri, was employed by the Kansas City, Kansas, headquarters of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmith, Forgers, and Helpers (the “Boilermakers Union”) as chief of staff of the Boilermakers Union and special assistant to the International President of the Boilermakers Union. From 2013 through October 2022, Brown reported directly to the International President and carried out his directives. Between those dates, Brown was involved in numerous instances of unlawful misappropriation of union funds, including:
- purchasing merchandise and hundreds of restaurant meals for the International President and his wife in their hometown that were not necessary to conduct union business or benefit the union or its members;
- employing several family members of international officers who received several hundred thousand dollars in salary, reimbursed expenses, unearned vacations, and benefit contributions for minimal or no productive work; and
- paying for dozens of international trips to Europe, Asia, and Australia for large entourages of international officers and employees of the Boilermakers Union, their families, and outside guests whose travel was not necessary to conduct union business or benefit the union or its members.
Brown is scheduled to be sentenced on Aug. 22 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Kate E. Brubacher for the District Kansas; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Stephen A. Cyrus of the FBI’s Kansas City Field Office; and Denver-St. Louis District Director Christiane Abendroth of the Department of Labor’s Office of Labor-Management Standards made the announcement.
The FBI and Department of Labor are investigating the case.
Trial Attorney Vincent Falvo of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Faiza Alhambra and Jabari Wamble for the District of Kansas are prosecuting the case.
Fmr. executive pleads guilty after losing bank’s $47.1 million in crypto schemeRead the Press Release
WICHITA, KAN. – A Kansas man pleaded guilty to using his position as a bank executive to embezzle millions of dollars causing the bank to fail at a complete loss of equity for investors.
According to court documents, Shan Hanes, 52, of Elkhart pleaded guilty to one count of embezzlement by a bank officer.
Hanes previously served as chief executive officer (CEO) of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas. From May 2023 to July 2023 Hanes initiated a series of 10 outgoing wire transfers totaling $47.1 million of Heartland’s funds to a cryptocurrency wallet. The funds were transferred to multiple cryptocurrency accounts controlled by unidentified third parties during the time HTSB was insured by the Federal Deposit Insurance Corporation.
“Shan Hanes is a liar and a master manipulator who caused Heartland Tri-State Bank to collapse. Even as he was squandering away tens of millions of dollars in cryptocurrency, Hanes orchestrated schemes to cover his tracks concerning the losses at the bank,” said U.S. Attorney Kate E. Brubacher. “Many victims will never fully recoup losses to their life savings and retirement funds, but at least we at the Department of Justice can see that Hanes is held criminally responsible for his actions.”
“Shan Hanes exploited his position as a bank executive to commit fraud and embezzle funds that ultimately led to Tri-State Bank’s failure,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “Today’s announcement demonstrates our commitment to bringing to justice bank executives who engage in illegal activities that undermine the public trust. I commend our agent and law enforcement partners for their diligent work that ultimately led to this outcome.”
Hanes is scheduled to be sentenced on August 8, 2024, and faces a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board - Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General ((FHFA-OIG) are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
###
Kansas woman sentenced for drug conspiracy crimesRead the Press Release
TOPEKA, KAN. – A Kansas woman was sentenced to 20 years in prison after being found guilty of multiple charges related to drug trafficking.
According to court documents, a federal jury convicted Theresa Hight, 60, of Topeka, of one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of maintaining a drug-involved premises, and two counts of distribution of a controlled substance. The jury found Hight not guilty of one count of distribution and posses with the intent to distribute controlled substances.
Three additional co-defendants pled guilty in the case. Shelli Lynn Zarazua, 59, of Topeka pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances. On May 1, 2024, Zarazua was sentenced to 120 months in prison.
Anabell Madrigal, 58, of Chula Vista, California, pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances and on April 24, 2024, was sentenced to 24 months in prison.
Allen Joseph Baker, 45, of Topeka pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances and on May 1, 2024, was sentenced to 105 months in prison.
In March 2021, law enforcement officers received information that a courier was scheduled to drop off illegal narcotics at Hight’s residence in Topeka. While conducting surveillance, officers observed Madrigal arrive at the house. After a short time inside, Madrigal, Zarazua, Hight, and Baker all left in separate vehicles. Officers conducted traffic stops on each of the suspects. They found a pound of methamphetamine on Baker’s person as well as 17 bundles of methamphetamine in his vehicle. Hight had an ounce of methamphetamine and digital scales. Officers discovered three bundles of cash concealed in the panels of Madrigal’s vehicle. The total weight delivered on this occasion was approximately 20 pounds. Officers learned this was the second delivery which occurred at Hight’s residence.
The Shawnee County Sheriff’s Office and the Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorneys Lindsey Debenham and Sara Walton prosecuted the case.
###
Wichita bookkeeper sentenced for wire fraudRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 18 months in prison for embezzling tens of thousands of dollars from his former employer.
According to court documents, Jason Matthew Pennington, 52, of Wichita pleaded guilty to one count of wire fraud.
Pennington worked at an animal hospital in Derby, Kansas, as a bookkeeper and office assistant. Because of his position, Pennington had access to the company’s financial records and payroll system. In July 2020, he embezzled approximately $41,000 by making unauthorized wire transfers from the company’s payroll system to his personal bank accounts. As part of his plea agreement, Pennington agreed to pay full restitution to the animal hospital.
The Federal Bureau of Investigation (FBI) investigated the case.
Assistant U.S. Attorneys Lanny Welch and Aaron Smith prosecuted the case.
###
Two USPS employees indicted in separate theft casesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned separate indictments charging two former employees of the U.S. Postal service with stealing the contents of mail.
According to court documents, Alexa Garner-Cavender, 36, of Wichita is charged with four counts of theft of mail by a postal employee. Garner-Cavender is accused of stealing checks from the mail on multiple occasions in 2023 totaling approximately $4,800.
In a separate, unrelated case, Dylan Ellis, 30, of Andale is charged with one count of delay or destruction of mail by postal employee. Between January and February of 2024, Ellis is accused stealing U.S. currency (cash) from the mail.
The U.S. Postal Service – Office of Inspector General is investigating the cases.
Assistant U.S. Attorney Aaron Smith is prosecuting the cases.
OTHER INDICTMENTS
Carletos Amaro, 26, of Wichita was indicted on one count of aiming a laser pointer at an aircraft. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorney Kari Burks is prosecuting the case.
Jesus Castelo-Roman, 30, of Wichita was indicted on one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, one count of possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by an illegal alien. Homeland Security Investigations (HSI) is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
Matias Pascual, 24, of Salina was indicted on two counts of assaulting, resisting, or impeding certain officers or employees. Homeland Security Investigations (HSI) is investigating the case. Assistant U.S. Attorney Jason Hart is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Wichita man sentenced to prison for threats to Pres. BidenRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 21 months in prison for threatening to kill the President of the United States of America.
According to court documents, Cody McCormick, 28, of Wichita pleaded guilty to one count of making a threat against the President of the United States.
In April 2023, McCormick sent a Wichita television station a Facebook message detailing his intention to murder U.S. President Joseph (Joe) Biden. The message read in part, “I will get a Greyhound bus ticket and go and shoot him."
U.S. Secret Service agents interviewed McCormick. The agents asked McCormick if they needed to be worried about him if President Biden came to Wichita. McCormick responded that if given the opportunity, he would "force him (POTUS) to step down from office" and would "kidnap him". He also told agents, "My intent is to kill Joe Biden if I don't get the help I need."
The U.S. Secret Service and the Wichita Police Department investigated the case.
Assistant U.S. Attorney Matt Treaster prosecuted the case.
###
Brothers sentenced to prison for shooting at law enforcement officersRead the Press Release
KANSAS CITY, KAN. – A pair of Kansas brothers will serve time in prison for opening fire on law enforcement officers as the officers were investigating an earlier, related shooting.
According to court documents, G’Ante Butler, 24, and Zarion Butler, 26, of Kansas City, Kansas, were both sentenced to 190 months’ imprisonment.
In December 2023, a federal jury found G’Ante Butler guilty of one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.Zarion Butler subsequently pleaded guilty to one count of forcible assault of a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.
Co-defendants Nadarius Barnes, 24, Chase Lewis, 23, and Donnell L. Hall, 28, all of Kansas City, Kansas, each pleaded guilty to one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence. Barnes was sentenced to 156 months’ imprisonment, Lewis (a driver who did not shoot at officers) was sentenced to 42 months’ imprisonment, and Hall is awaiting sentencing.
On August 3, 2020, Kansas City, Kansas police officers responded to a “shots fired” call at a house where the Butler brothers’ parents lived on Farrow Avenue. In response to the investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agents and federally deputized Task Force Officers (TFOs) went to North Allis Street and arrested a suspect in the Farrow Avenue shooting. As the officers were returning to their vehicles, multiple shooters began firing at them. The officers tried to immediately take cover, however, not before an officer and a civilian bystander were struck by gunfire.
The Butlers, Barnes, and Hall shot at the North Allis Street house in retaliation for the earlier shooting on Farrow Avenue. Officers later recovered numerous spent shell casings (including 9mm, .40 caliber, .45 caliber, 5.56 caliber, and 7.62 caliber casings) from an alley west of the targeted North Allis Street home.
“Numerous brave Law Enforcement Officers started their day in August of 2020 doing their job by executing a lawful search warrant when they were ambushed by four individuals. No one can be allowed to shoot at law enforcement. This sentence sends a clear warning to anyone who thinks they can shoot at Law Enforcement and get away with it – they cannot. If they try, we will tirelessly work with the United States Attorney’s Office and our federal, state, and local partners to investigate and prosecute them to the fullest extent provided by law,” stated Bernard G. Hansen, Special Agent in Charge, Kansas City Field Division. “The actions of the ATF Special Agents and officers from our partner agencies that day are truly commendable as they acted with high regard not only for their safety but those of the surrounding community. I am both grateful for, and inspired by, the professionalism shown by the ATF agents who risked their lives that morning.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kansas City, Kansas Police Department, and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorneys Faiza Alhambra and Trent Krug are prosecuting the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service, and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.###
Colby CPA accused of defrauding business clientRead the Press Release
WICHITA, KAN. – A Kansas man made his initial appearance before a federal judge following an indictment for defrauding clients of his accounting firm.
According to court documents, Quintin Flanagin, 43, of Colby is charged with seven counts of wire fraud, four counts of bank fraud, two counts of false statements, and six counts of money laundering.
Flanagin, a certified public accountant (CPA), is part owner of the accounting firm, Williams Consulting. The owners of Diamond M. Farms in Thomas County contracted the firm to perform CPA duties for the company. Flanagin acted as signatory for Diamond M Farms bank accounts and prepared payroll.
Flanagin created a fictitious business called Middle Finger Ranch and added the company name to his personal bank account. Between December 2021 and August 2022, the defendant allegedly wrote multiple checks and initiated wire transfers totaling approximately $409,710 from Diamond M. Farms to Middle Finger Ranch under the guise of being payments for farm operations.
In 2021, Flanagin hired a construction company to build him a new house. The transaction records indicate he paid the contractor from the Middle Finger Ranch bank account within days of the funds being transferred from Diamond M. Farms
The defendant made his initial court appearance before U.S. Magistrate Judge Gwynne E. Birzer of the U.S. District Court for the District of Kansas.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorney Katie Andrusak is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Kansas woman indicted for threats to Presidents Biden & ClintonRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas woman with making threats against current and former nationally elected officials.
According to court documents, Lori Davis, 40, of Park City is charged with one count of threats against a former president of the United States and one count of threats against the president of the United States.
Davis is accused of calling the Clinton Foundation in New York in September 2021 and leaving a message threatening to kill former U.S. President William (Bill) Clinton.
In 2024, Davis is accused of making multiple posts on social media threatening to murder U.S. President Joseph (Joe) Biden.
The U.S. Secret Service is investigating the case.
Assistant U.S. Attorney Lanny Welch is prosecuting the case.
OTHER INDICTMENTS
Ismael Deleon-Ortega Jr, 59, Liberal of was indicted on one count of possession of child pornography. Homeland Security Investigations (HSI) is investigating the case. Assistant U.S. Attorney Jason Hart is prosecuting the case.
Devin Dewater, 27, of Wichita was indicted on two counts of possession of a firearm by a convicted felon and one count of possession of an unregistered firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Texas man pleads guilty in $1 million kickback schemeRead the Press Release
TOPEKA, KAN. – A man pleaded guilty to taking part in a $1 million fraudulent customer refund scheme involving more than a dozen defendants.
According to court documents, Mercele Brooks, 28, of Harker Heights, Texas, pleaded guilty to one count of accessory after the fact to laundering monetary instruments.
Kanesha Mercer, Darius Polite, Rudy Hunt, and Veronica Kilman were employees at Advanced Call Center Technologies ("ACCT") in Junction City, Kansas. Their duties included processing customer refunds for AT&T Digital Life home security systems. Between December 2016 and August 2018, they processed fraudulent refund claims totaling approximately $1 million. They deposited the funds into the bank accounts of co-conspirators who would return a portion of the money to the employees. Accounts owned or controlled by Brooks received $100,317 in wire fraud proceeds.
“This type of fraud, put simply is greed driven. These crimes are not victimless, as ultimately costs are passed on to the consumer. This investigation determined that multiple bad actors took part in this scheme, and this plea demonstrates that these individuals are being held accountable for their actions,” said Stephen A. Cyrus, FBI Kansas City Special Agent in Charge.
Kanesha Mercer, 35, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced to 14 months in prison.
Kory Epps Jr., 25, pleaded guilty to one count of wire fraud and was sentenced to 10 months in prison.
Caylon McCormick pleaded guilty to one count of wire fraud and was sentenced to six months in prison.
Darius Polite, 30, pleaded guilty to one count of conspiracy to commit wire fraud and is awaiting sentencing.
Anthony Charite, 33, Kiondra Armstrong, 30, Fontelle Jolly, 26, Veronica Kilman, 33, Rudy Hunt, 32, and Sharika Pope, 42, pleaded guilty to one count of wire fraud.
Erica Jackson, 41, and Shunqureau Gilbert, 30, pleaded guilty to laundering of monetary instruments.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorney Skip Jacobs is prosecuting the case.
###
Missouri man sentenced for bank robbery in KansasRead the Press Release
KANSAS CITY, KAN. – A Missouri man was sentenced to 100 months in prison for bank robbery.
A federal jury had convicted Richard Ruston, 54, of Independence, Missouri, for robbing a bank in Shawnee, Kansas, in July 2022.
According to court documents, Ruston entered First Interstate Bank on Shawnee Mission Parkway wearing a red bandana covering his face and neck, a dark bandana covering the top of his head, a long-sleeve shirt with a snake-skin pattern, sunglasses, and gloves. He approached a bank teller, lifted his shirt, displayed a firearm in his waistband, and said to her, “Put the money on the counter, do it now, do it now.” Fearing for her safety, the teller complied with the demand. Ruston took the money and fled the scene.
The Federal Bureau of Investigation (FBI) and Shawnee, Kansas Police Department, with valuable assistance from the Merriam, Kansas Police Department, Kansas City, Missouri Police Department, and Liberty, Missouri Police Department, investigated the case.
Assistant U.S. Attorney Trent Krug prosecuted the case.
###
Wichita man sentenced for trafficking fentanylRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 180 months in prison for trafficking fentanyl.
Devonte Smith, 28, of Wichita pleaded guilty to possession with intent to distribute fentanyl.
According to court documents, in April 2023, Smith and a co-defendant traveled by plane from Wichita to Arizona, to purchase fentanyl-laced pills, which they arranged to bring back to Kansas. In his plea agreement, Smith admitted he flew back to Wichita and directed a co-defendant to return to Kansas with the pills, which were seized by law enforcement in a car driven by a second co-defendant.
Law enforcement’s car stop occurred in Pratt, Kansas, resulting in the discovery of more than 100,000 pills which tests confirmed were fentanyl-laced.
Criminal charges against the co-defendants are pending within the court system.
The Federal Bureau of Investigation (FBI), Wichita Police Department, Sedgwick County Sheriff’s Office, IRS-Criminal Investigation, U.S. Postal Inspection Service, and U.S. Department of Homeland Security Investigations (HSI) investigated the case.
Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi prosecuted the case.
OCDETF
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###U.S. Attorney’s Office reaches settlement with Kansas hospital after complaint of disability discriminationRead the Press Release
KANSAS CITY, KAN. – The U.S. Attorney’s Office has reached a settlement with a Kansas medical facility to resolve allegations that the hospital failed to reasonably accommodate a deaf patient by not providing a sign language interpreter in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Kate E. Brubacher announced today.
Under the settlement, Prime Healthcare Services – Providence, LLC doing business as Providence Medical Center (“PMC”), located in Kansas City, Kansas, agrees to compensate the aggrieved deaf individual for his inability to effectively communicate with the medical team during his five-day hospital stay. In addition, PMC agreed to change its policies and practices to come into compliance with their obligations under the ADA, which include:
• providing patients and companions who are deaf or hard of hearing with appropriate auxiliary aids and services that are necessary for effective communication;
• designating at least one employee as an ADA Administrator or ADA Co-Administrators who will be on call and available twenty-four (24) hours a day, seven (7) days a week to answer questions and provide appropriate assistance regarding auxiliary aids and services including qualified interpreters;
• maintaining a log for requests for qualified interpreters on site or through video remote services that documents the time and date the request, patient’s name, the time and date of the scheduled appointment; and
• establishing a complaint resolution mechanism to investigate disputes regarding effective communication with deaf patients and companions.“All patients deserve clear explanations about the nature of their diagnosis and medical treatment so they can have a full understanding of their options and make well-informed decisions about their healthcare,” said U.S. Attorney Kate E. Brubacher. “A patient’s disability doesn’t relieve a medical facility and its staff of their obligation to provide effective communication.”
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office Civil Rights Unit at https://www.justice.gov/usao-ks/civil-rights or they may call (855) 321-5549. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The United States is represented by Assistant United States Attorney, Andrea L. Taylor of the U.S. Attorney’s Office in Kansas City, Kansas.
###
Kansas car dealer indicted for rolling back odometersRead the Press Release
WICHITA, KAN.– A federal grand jury in Wichita returned an indictment charging a Kansas businessman with 27 counts of criminal misconduct connected to altering vehicle odometers.
According to court documents, Adam Newbrey, 31, of Derby operated three used car dealerships in Wichita including Ideal Motors, Midwest Wholesale, and Prestige Motors.
In 2020 and 2021, Newbrey allegedly purchased used vehicles in Kansas and Oklahoma, altered the odometers, and then used fraudulent documents to obtain titles from the Kansas Department of Revenue reflecting the falsified odometer readings. He is also accused of using the titles with the mispresented mileage to defraud customers who purchased vehicles.
Newbrey is charged with:
• one count of conspiracy to commit odometer fraud,
• nine counts of odometer tampering,
• seven counts of mail fraud,
• nine counts of aggravated identity theft, and
• one count of wire fraud.The defendant made his initial court appearance March 15, 2024, before U.S. Magistrate Judge Brooks Severson of the U.S. District Court for the District of Kansas.
The Kansas Department of Revenue – Office of Special Investigations and the U.S. Department of Transportation, National Highway Traffic Safety Administration - Office of Odometer Fraud Investigation are investigating the case.
Assistant U.S. Attorney Deb Barnett is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Two Texas men indicted for bank robbery in KansasRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging two men in connection with a bank robbery.
According to court documents, Demond M. Johnson, 18, and Ryan D. Smith, 25, both of Houston, Texas, are charged with one count of bank robbery. The defendants are accused of robbing Credit Union of America on South Ridge Road in Wichita, Kansas, on October 17, 2023.
If convicted, each faces up to 20 years in prison.
The Federal Bureau of Investigation (FBI) and Wichita Police Department are investigating the case.
Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
OTHER INDICTMENTS
Timothy Daniel Luker, 35, of Wichita was indicted on one count of distribution of child pornography. Homeland Security Investigations (HSI) and the Kansas Internet Crimes Against Children (ICAC) Task Force are investigating the case. Assistant U.S. Attorney Molly Gordon is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Man indicted for gun shop burglaryRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City returned an indictment charging a man with stealing firearms from a gun shop.
According to court documents, Patrick Montufar, 19, of Kansas City, Kansas, is charged with one count of burglary of a licensed firearms dealer. On October 24, 2023, Montufar allegedly stole nine pistols from Frontier Justice, a licensed gun dealer in Kansas City, Kansas.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is investigating the case.
Assistant U.S. Attorney David Zabel is prosecuting the case.
OTHER INDICTMENTS
Chloe Wade Gullotto, 23, of Leavenworth was indicted on one count of production of visual depictions of minors engaging in sexually explicit conduct and one count of receipt of child pornography. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorney Audrey McCormick is prosecuting the case.
Timothy Vigil, 38, of Lemore, California, was indicted on one count of receipt of child pornography. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorney Audrey McCormick is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Veteran and wife indicted for defrauding VARead the Press Release
TOPEKA, KAN. –A federal grand jury in Topeka returned an indictment charging a Kansas couple with fraudulently obtaining disability benefits from the Department of Veterans Affairs (VA).
According to court documents, James Bradford, 47, and Equanda Bradford, 45, of Junction City are charged with one count of conspiracy and one count of theft of public money, property, or records.
James Bradford, a U.S. Army veteran, and his wife Equanda are accused of providing false and fraudulent information to the VA, about his caregiver needs and her caregiving functions resulting in the receipt of $172,426 in disability compensation to which they were not entitled.
The Department of Veterans Affairs - Office of Inspector General and the General Services Administration - Office of Inspector General are investigating the case.
Assistant U.S. Attorney Skipper Jacobs is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Woman charged with murder at U.S. Army military installationRead the Press Release
TOPEKA, KAN. – A Kansas woman has been charged through criminal complaint for a shooting death that took place on a federal military installation in Junction City, Kansas.
According to court documents, Margaret E. Shafe, 30, of Fort Riley is charged with murder in the second degree for shooting and killing Greg Shafe on February 19, 2024, while on Fort Riley.
The defendant made her initial court appearance February 22, 2024, before U.S. Magistrate Judge Rachel E. Schwartz of the U.S. District Court for the District of Kansas. If convicted, she faces a maximum penalty of life in prison.
The Department of Army Criminal Investigation Division and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorney Stephen A. Hunting and Special Assistant U.S. Attorney Robin Graham are prosecuting the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Kansas man indicted on drug trafficking chargesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with drug trafficking and firearms crimes.
According to court documents, Horace R. Wright, 40, of Pittsburg is charged with one count of possession of methamphetamine with intent to distribute, one count of possession of fentanyl with intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.
The Kansas Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Lanny Welch is prosecuting the case.
OTHER INDICTMENTS
Raul Delgado-Sanchez, 32, of Wichita was indicted on one with count of distribution of methamphetamine, one count of possession of methamphetamine with the intent to distribute, and one count of unlawful possession of a firearm. The Drug Enforcement Administration (DEA) is investigating the case. Assistant U.S. Attorney Lanny Welch is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Wichita man sentenced to 25 years in prison for causing fentanyl deathRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 25 years in prison for giving a man a fentanyl pill which caused his death.
According to court documents, in October 2023, Tyler Ralls, 35, of Wichita pleaded guilty to one count of distribution of a controlled substance which resulted in death.
On July 31, 2019, Ralls gave Michael Marsalla, 35, a pill that Ralls knew was laced with fentanyl. Ralls admitted knowing that Marsalla wasn’t a user and thus didn’t have a tolerance for fentanyl. The next day when Ralls couldn’t reach Marsalla by phone, he drove to Marsalla’s house and found him unresponsive. Ralls dialed 911, and emergency responders pronounced Marsalla deceased at the scene. An autopsy determined the victim died of fentanyl toxicity.
“Michael Marsalla’s vibrant life was cut short because of a single pill,” said U.S. Attorney Kate E. Brubacher. “This 25-year prison sentence is one of the most severe handed down for a fentanyl causing death case in the history of the District of Kansas. Ideally this outcome will become a cautionary tale to fentanyl traffickers about the repercussions they face for their crimes, because our office is firmly committed to prosecuting those who peddle this poison in our communities.”
The Drug Enforcement Administration (DEA) and the Valley Center Police Department investigated the case.
Assistant U.S. Attorney Katie Andrusak prosecuted the case.
###
Former Kansas bank executive charged with embezzling $47 millionRead the Press Release
WICHITA, KAN. – The U.S. Attorney’s Office – District of Kansas has charged a Kansas man by information with embezzling millions of dollars from his former employer. An information is an accusation exhibited against a person for a criminal offense without an indictment from a grand jury.
According to court documents, Shan Hanes, 52, of Elkhart is charged with one count of bank embezzlement.
Hanes previously served as the chief executive officer of Heartland Tri-State based in Elkhart. Hanes is accused of intentionally defrauding the bank by willfully misapplying and embezzling approximately $47.1 million. He allegedly did this by initiating a series of wire transfers between May 2023 and July 2023 to purchase cryptocurrency for his personal benefit.
The defendant is scheduled for his initial court appearance February 28, 2024, before U.S. Magistrate Judge Gwynne E. Birzer of the U.S. District Court for the District of Kansas.
If convicted, Hanes faces a maximum penalty 30 years in prison.
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board - Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General ((FHFA-OIG) are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
An information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Jury convicts Dighton man of child exploitation chargesRead the Press Release
WICHITA, KAN. – A federal jury convicted a Kansas man on child exploitation charges.
The jury found Daniel Kroeker, 49, of Dighton, guilty of receiving child pornography via his social media account in July 2019. The jury also found he possessed a laptop and cell phone containing pornographic images of a child under the age of 12 when agents conducted a search in December 2020.
Kroeker is scheduled to be sentenced on April 24, 2024 and faces a maximum penalty of 20 years in prison of each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Kansas Bureau of Investigation, North Dakota Bureau of Investigation, and Homeland Security Investigations (HSI) – North Dakota are investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.###
USAO works with local law enforcement to stop fentanyl & meth traffickingRead the Press Release
WICHITA, KAN. – A Kansas woman was sentenced to 57 months in prison for trafficking drugs.
According to court documents, Andrea Brooke Kendall, 43, of Wichita pleaded guilty to possession with intent to distribute methamphetamine.
In January 2022, a Sedgwick County Sheriff’s Office deputy who was working undercover arranged to purchase meth from Kendall. She sold the deputy two ounces of meth and 100 fentanyl pills. Law enforcement officers observed the transaction then followed Kendall to another location where her vehicle was searched. Deputies found 12.25 grams of heroin, nearly a pound a meth, as well as methadone, amphetamine, Pregabalin, and fentanyl pills.
Co-defendant Aaron Roberson, 39, of Wichita was a passenger in Kendall’s vehicle at the time of another traffic stop. He pleaded guilty to possession with intent to distribute fentanyl and was sentenced to 22 months in prison.
The Sedgwick County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Deb Barnett prosecuted the case.
###
Wichita man indicted for firing gun during robberyRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a man for allegedly discharging a firearm while robbing a business.
According to court documents, Clemente Garcia Jr, 35, of Wichita was indicted on one count of interference with commerce by threats or violence, one count of using and carrying a firearm during and in relation to a crime of violence, and one count of possession of a firearm by a convicted felon.
Garcia is accused of firing a high caliber rifle while robbing a restaurant on South Seneca Street in Wichita, Kansas, in November 2022.
The Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) are investigating the case.
Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
OTHER INDICTMENTS
Chad Gibson, 50, of Wichita was indicted on one count of theft of government property. The U.S. Department of Veterans Affairs, Office of Inspector General is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
Antonio Knight, 25, of Wichita is charged with one count of possession with intent to distribute fentanyl. The Federal Bureau of Investigation (FBI), Wichita Police Department, and Sedgwick County Sheriff’s Office are investigating the case. Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi are prosecuting the case.
Jason Moody, 50, of Coffeyville is charged with two counts of possession of a firearm by a convicted felon. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is investigating the case. Assistant U.S. Attorney Matt Treaster is prosecuting the case.
Eric Saldana, 37, of Haysville was indicted on three counts of possession with intent to distribute methamphetamine and one count of possession with intent to distribute cocaine. The Sedgwick County Sheriff's Office is investigating the case. Assistant U.S. Attorney Deb Barnett is prosecuting the case.
Clifton Weatherspoon, 31, of Wichita was indicted on two counts of possession of fentanyl with intention to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm by a convicted felon. The Federal Bureau of Investigation (FBI), Wichita Police Department, and Sedgwick County Sheriff’s Office are investigating the case. Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Kansas man sent to prison for counterfeiting moneyRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 57 months in prison for making counterfeit United States currency.
According to court documents, Joseph Bulis, 38, of Wichita pleaded guilty in October 2023, to one count of manufacturing counterfeit currency and one count of possession of a firearm by a felon.
In July 2022, law enforcement went to Bulis’ hotel room in Wichita where they discovered a printer and paraphernalia used to manufacture counterfeit currency. They also found $3,000 in counterfeit money in the forms of $100 and $20 bills. Bulis fled when law enforcement arrived. When he was later apprehended, he had a backpack containing drawing paper, uncut counterfeit bills, and cutting tools.
In a separate incident, Bulis was contacted by law enforcement during a traffic stop and found to have a gun in the vehicle. He is prohibited from having a firearm because of a prior felony conviction.
The U.S. Secret Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.
Assistant U.S. Attorneys Lanny Welch and Katie Andrusak prosecuted the case.
###
Overland Park man sentenced for tax evasionRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced one year and one day in prison for lying on federal income tax returns.
According to court documents, Christopher S. Savell, 42, of Overland Park pleaded guilty to three counts of making and subscribing a false income tax return.
In his 2016 tax returns, Savell reported to the Internal Revenue Service (IRS) to have paid $458,711 in mortgage interest knowing he had actually paid $4,363 in mortgage interest. That same year he also reported to have paid $10,987 in real estate taxes when the actual amount was $5,663.
During 2017 tax returns, Savell declared $486,725 in mortgage interest payments when the actual amount was $24,108. He also claimed to have paid $68,980 in real estate taxes when he had paid $10,750.
Also in his 2017 tax returns, Savell indicated he paid $36,537 in state income taxes and $109,965 in federal income tax withholdings knowing he paid nothing in either.
In 2018 tax returns, Savell falsely stated he’d paid $71,400 in mortgage interest when the true amount was $20,605, and he said he paid $20,315 in real estate taxes after paying $10,315. He submitted documents claiming to have paid $34,033 in state income taxes and $81,252 in federal income tax withholdings. Savell didn’t pay state income taxes or federal income tax withholding in 2018.
“Taxpayers can’t make-up their own rules when it comes to paying their share of taxes, said Thomas F. Murdock, Special Agent in Charge, IRS Criminal Investigation (CI), St. Louis Field Office. “Mr. Savell intentionally filed false and fraudulent tax returns which makes him a tax cheat. CI will continue to aggressively pursue those who seek to steal from the American public by cheating the tax system.”
The IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Christopher Oakley prosecuted the case.
###
Man sentenced in Kansas City drug ring tied to Mexican cartelRead the Press Release
KANSAS CITY, KAN. – A man was sentenced to 102 months in prison for his involvement in a Kansas City metro-based drug trafficking ring with ties to Mexico.
According to court documents, Edwar Salazar-Belleda, 34, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
Salazar-Belleda was part of an international drug trafficking ring operating with meth brought in from Mexico. The co-conspirators laundered illegal proceeds as wire payments destined for individuals in Mexico and California.
From August 2019 through May 2021, the Kansas Bureau of Investigation (KBI) and Homeland Security Investigations (HSI) led an undercover investigation which included multiple purchases of meth, heroin, and firearms. Romel Alvarado-Calderon, 27, of Kansas City, Kansas, was the head of the operation, and Salazar-Belleda acted as a broker.
In April 2021, Salazar-Belleda was arrested after a trash bag containing 7.57 kilograms of 98.6% pure meth was found in his hotel room. Law enforcement also located digital scales, meth, heroin, a stolen firearm, and ammunition in his suitcase.
Over the course of the conspiracy investigation, more than 150 kilograms of meth, more than 11 ounces of heroin, marijuana, and numerous firearms were either purchased or seized.
Romel Alvarado-Calderon, Victor Troches-Reyes, 42, Hervey Moreno-Gonzalez, 32, Jesus Vigil-Canales, 44, and Victor Pardo-Jimenez, 34, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
Juana Infante-Garcia, 36, Gabriela Garcia-Rojas, 28, and Sergio Galvez-Rodriguez, 34, pleaded guilty to one count of conspiracy to launder drug proceeds.
There are additional defendants who have cases pending in court.
The Kansas Bureau of Investigation and Homeland Security Investigation (HSI) investigated the case.
Assistant U.S. Attorneys Michelle McFarlane, David Zabel, and Sheri Catania prosecuted the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service, and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.
###
Wichita man pleads guilty to COVID-19 relief fraudRead the Press Release
WICHITA, KAN. – A Kansas man pleaded guilty to using fraudulent means to obtain COVID-19 disaster relief money.
According to court documents, Jack Crowder, 34, of Wichita pleaded guilty to one count of theft of government property.
Crowder admits submitting an application and supporting documents containing false and misleading information to secure COVID-19 disaster relief payments totaling approximately $23,000. The United States Department of Labor, through the State of Kansas Department of Labor, dispersed the funds to Crowder in September 2022.Crowder is scheduled to be sentenced on April 3, 2024, and faces a mandatory maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-Criminal Investigation, Kansas Department of Labor, and the Wichita Police Department are investigating the case.
Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi are prosecuting the case.
###
Jury convicts Kansas City, Kansas man for shooting at law enforcementRead the Press Release
KANSAS CITY, KAN. – A federal jury convicted a Kansas man for taking part in a retaliatory shooting that injured two people, including a federal task force officer.
According to court documents and evidence presented at trial, G’Ante Butler, 24, of Kansas City, Kansas, was found guilty of one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.
On August 3, 2020, Kansas City, Kansas police officers responded to a “shots fired” call on Farrow Avenue, where the defendant’s parents lived. Later that evening, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agents and federally deputized Task Force Officers (TFOs) went to North Allis Street and arrested one of the individuals responsible for the earlier Farrow Avenue residence shooting. After executing a search warrant at the North Allis Street residence, and as the officers were returning to their vehicles, multiple shooters began firing at them. The officers tried to immediately take cover, however, not before an officer and a civilian bystander were struck by gunfire.
Based on evidence gathered during the subsequent investigation, ATF agents learned the shooting was orchestrated by G’Ante Butler and other individuals in retaliation for the earlier incident on Farrow Avenue. Their plan was to shoot at the North Allis Street home and any individuals they encountered there. Officers later recovered approximately 101 casings and two live rounds (including 9mm, .40 caliber, .45 caliber, 5.56 caliber, and 7.62 caliber casings) from an alley west of the targeted North Allis Street home.
Co-defendants Nadarius Barnes, 24, Chase Lewis, 23, and Donnell L. Hall, 28, all of Kansas City, Kansas, each pleaded guilty to one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.
A fifth defendant is scheduled to stand trial in February 2024.
“Gang members and their reckless violence are threats to the entire community, including those sworn to protect us. We are fortunate that the officer and the innocent bystander in this case didn’t lose their lives or suffer more serious injuries,” said U.S. Attorney Kate E. Brubacher. “Those who think they can orchestrate gun battles in our streets without the U.S. Department of Justice pursuing severe legal consequences against them are mistaken.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kansas City, Kansas Police Department, and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorney Faiza Alhambra and Trent Krug are prosecuting the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service, and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.###
Owner of Kansas Company Pleads Guilty to Crimes Related to Scheme to Illegally Export U.S. Avionics Equipment to Russia and Russian End UsersRead the Press Release
Cyril Gregory Buyanovsky, 60, of Lawrence, Kansas, the owner and president of KanRus Trading Company Inc., pleaded guilty today for his role in a years-long conspiracy to circumvent U.S. export laws by filing false export forms with the U.S. government and, after Russian’s unprovoked invasion of Ukraine in February 2022, continuing to sell and export sophisticated and controlled avionics equipment to customers in Russia without the required licenses from the U.S. Department of Commerce.
“Buyanovsky admitted to a long-running scheme to smuggle sophisticated U.S. avionics equipment to Russia, doubling down to hide his actions after Russia’s unprovoked invasion of Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s guilty plea demonstrates the Justice Department’s commitment to cut off Moscow from the means to fuel its military and hold those enabling it accountable in a court of law.”
“The rejection of tyranny and the protection of democracy are among the foundational principles of the United States of America. Our country continues to hold steadfastly to these ideals,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “After the Russian invasion of Ukraine, the U.S. government imposed export controls and sanctions to prevent the weaponization of U.S. manufactured technology against Ukraine in a conflict intended to usurp its right to sovereignty within its borders. As long as there are people who value greed and profit over freedom and justice, the U.S. Department of Justice will remain vigilant and investigate and prosecute these crimes.”
“Buyanovsky’s guilty plea serves as a reminder to those who defy U.S. law to support Russia’s aggression – know you will be held accountable for your actions,” said Executive Assistant Director Larissa Knapp of the FBI’s National Security Branch. “The FBI, along with our partners, works diligently to identify and prevent illegal transfers of sophisticated equipment to hostile nations and will pursue those who support such smuggling operations.”
“The diversion of controlled U.S.-origin goods and falsification of end user information for use by Russian end users will be vigorously investigated,” said Special Agent in Charge Aaron Tambrini of Department of Commerce’s Office of Export Enforcement Chicago Field Office. “Individuals will be pursued and prosecuted wherever they are located.”
According to court documents, as part of his guilty plea, Buyanovsky admitted that between 2020 and when he was arrested in March, he conspired with others – including co-defendant and former KanRus vice president Douglas Edward Robertson, 56, of Olathe, Kansas – to smuggle U.S.-origin avionics equipment to end users in Russia, as well as Russian end users in other foreign countries, by, among other actions, knowingly filing false export forms and failing to file required export forms with the U.S. government. In these forms, Buyanovsky and his conspirators lied about the exports’ value, end users and end destinations.
Buyanovsky further admitted that on at least one occasion in 2021, he and Robertson smuggled a repaired Traffic Alert and Collision Avoidance System (TCAS) to the Federal Security Service of the Russian Federation (FSB) by removing the FSB sticker from the device before sending the device to a U.S. company to be repaired and then reattaching the sticker before shipping the TCAS back to the FSB in Russia.
Buyanovsky further admitted that after Russia invaded Ukraine in February 2022 and the U.S. government tightened export controls concerning Russia, he, co-defendant Robertson and other conspirators continued to purchase and export U.S.-origin avionics equipment to customers in Russia and took numerous steps to hide their illegal activity from law enforcement, including by lying to U.S. suppliers about the intended end users; shipping goods through intermediary companies in Armenia, the United Arab Emirates, and Cyprus; continuing to file false export forms with the U.S. government; and using foreign bank accounts in countries other than Russia, such as Armenia, Kazakhstan, Kyrgyzstan, Cyprus and the United Arab Emirates, to funnel money from the Russian customers to KanRus in the United States.
In addition to pleading guilty, Buyanovsky consented to the forfeiture of over $450,000 worth of avionics equipment and accessories and a $50,000 personal forfeiture judgment. According to court documents, among the equipment that Buyanovsky forfeited was a pallet of avionics devices that was detained by U.S. Customs and Border Protection the day before Buyanovsky and Robertson were arrested.
On Dec. 7, as part of the U.S. government’s interagency efforts to dismantle Russian procurement networks designed to circumvent U.S. export controls and sanctions imposed in response to Russia’s invasion of Ukraine, the Department of Commerce added many of the entities and individuals involved in Buyanovsky’s illegal export scheme to the Commerce Department’s Entity List, which imposes specific license requirements on all listed individuals and entities.
As a result of today’s guilty plea, Buyanovsky faces a maximum penalty of 25 years in prison – five years for the conspiracy count and 20 years for the money laundering count. A sentencing hearing is scheduled for March 21, 2024.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Task Force KleptoCapture Co-Directors David Lim and Michael Khoo, U.S. Attorney Kate E. Brubacher for the District of Kansas, Executive Assistant Director Larissa Knapp of the FBI’s National Security Branch, Special Agent in Charge Stephen A. Cyrus of the FBI Kansas City Field Office, and Special Agent in Charge Aaron Tambrini of the Department of Commerce’s Office of Export Enforcement Chicago Field Office, and Special Agent in Charge John Johnson of the Department of Commerce’s Office of Export Enforcement Miami Field Office made the announcement.
The FBI and the Department of Commerce’s Office of Export Enforcement are investigating the case. U.S. Customs and Border Protection provided substantial assistance.
Assistant U.S. Attorneys Scott Rask and Ryan Huschka for the District of Kansas and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Overland Park man charged with robbing bankRead the Press Release
KANSAS CITY, KAN. – A Kansas man has been charged through criminal complaint in Kansas City, Kansas, for allegedly robbing a bank.
According to court documents, Cesar Serrano, 46, of Overland Park is charged with one count of bank robbery. On December 16, 2023, Serrano allegedly used a firearm to demand money from employees at Great Southern Bank in Prairie Village, Kansas.
The defendant is scheduled for his initial court appearance on December 20, 2023, before U.S. Magistrate Judge Angel D. Mitchell of the U.S. District Court for the District of Kansas. If convicted, he faces a maximum penalty of 25 years in prison.
The Prairie Village Police Department, Federal Bureau of Investigation (FBI), and Overland Park Police Department are investigating the case.
Assistant U.S. Attorney Kim Flannigan is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Three federal prison inmates charged in separate indictmentsRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City returned separate indictments charging federal inmates with crimes.
According to court documents, on April 19, 2023, Thaddeus D. Daniel, 45, allegedly attacked a corrections officer at U.S. Penitentiary Leavenworth where Daniel is an inmate.
The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorney David Zabel is prosecuting the case.
In a separate case, Jeremiah L. Harris, 44, of U.S. Penitentiary Leavenworth, was indicted on one count of escape from custody for an alleged escape on June 23, 2023. Harris is serving a prison sentence following a conviction in the U.S. District Court of Western Missouri.
The U.S. Marshals Service is investigating the case. Assistant U.S. Attorney David Zabel is prosecuting the case.
James Thompson, 50, of U.S. Penitentiary Leavenworth, was indicted on one count of escape from custody for an alleged escape on November 9, 2023. Thompson is serving a prison sentence following a conviction in the U.S. Northern District of Georgia
The U.S. Marshals Service is investigating the case. Assistant U.S. Attorney David Zabel is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Wichita man sentenced after dealing narcotics out of hotelRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to five years in prison for having firearms while dealing illegal narcotics.
According to court documents, Alexander Schultz, 36, of Wichita pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
In February 2023, the Sedgwick County Sherriff’s Office (SCSO) learned that Schultz was selling narcotics at a hotel in Wichita. Through surveillance, SCSO detectives observed Schultz dealing out of his hotel room and from his car in front of the hotel. Law enforcement arrested Schultz on an outstanding warrant and searched his vehicle. Detectives discovered baggies with blue "M30" pills with later tested positive for fentanyl with a total net weight of 138.89 grams. Law enforcement also found methamphetamine (29.40 grams), two firearms, $2,878 in U.S. Currency, and several zipper bags containing raw marijuana inside the vehicle.
In Schultz’s hotel room, deputies found approximately 12 grams of methamphetamine, a small amount of crack cocaine, marijuana, and drug paraphernalia. They also found a rifle under the mattress.
Schultz admitted the items located inside of the vehicle and hotel room were his, and that he intended to distribute the methamphetamine and fentanyl. He told investigators he had the firearms to protect himself and the drugs he was trafficking.
“Wherever there are illegal narcotics sales and guns there will likely be violence at some point. The defendant chose to deal drugs from a hotel showing he had no regard for the safety of the staff and other guests,” said U.S. Attorney Kate E. Brubacher. “Law enforcement was able to arrest Alexander Schultz and stop him from selling fentanyl and methamphetamine which may have saved lives.”
The Sedgwick County Sheriff’s Office and Wichita Police Department investigated the case.
Assistant U.S. Attorneys Ola Odeyemi and Deb Barnett prosecuted the case.
###
Two Men Indicted on Drug Trafficking ChargesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging two men with drug trafficking crimes.
According to court documents, Omar Cebreros, 42 and Mario Ahumada-Adame, 32, both of Ensenada, Baja California, Mexico, were indicted on two counts of possession with the intent to distribute cocaine, two counts of possession with intent to distribute fentanyl, and two counts of possession with intention to distribute methamphetamine.
The Drug Enforcement Administration (DEA) and the Kansas Highway Patrol are investigating the case.
Assistant U.S. Attorney Larry Fadler is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Kansas man charged with assault at a U.S. Army installationRead the Press Release
TOPEKA, KAN. – A Kansas man has been charged through criminal complaint in Topeka, Kansas, following an incident on a federal military installation.
According to court documents, Jordan Thompson, 24, of Galena is charged with two counts of assault with a deadly weapon for allegedly assaulting two people on November 24, 2023, while at Fort Riley in Junction City, Kansas.
The defendant made his initial court appearance before U.S. Magistrate Judge Rachel E. Schwartz of the U.S. District Court for the District of Kansas. If convicted, he faces a maximum penalty of 10 years in prison on each count.
The Department of Army Criminal Investigation Division, Fort Riley Department of the Army Civilian Police, the Kansas Bureau of Investigation, the Federal Bureau of Investigation, and Butler County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Stephen Hunting and Special Assistant U.S. Attorney Robin Graham are prosecuting the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###