Western District of Missouri
Press releases recorded for this federal judicial district.
Springfield Man Indicted for Sexual Exploitation of a MinorRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been indicted on charges related to the sexual exploitation of a minor.
Ryan Lee Christoph, 25, of Springfield, was charged in three-count indictment returned by a federal grand jury in Springfield on Tuesday, Dec. 12, 2017.
The federal indictment alleges that Christoph used a minor, identified as “Jane Doe” (born in 2003), to produce child pornography from April 29 to Aug. 15, 2017. The indictment also alleges that Christoph used the internet and a cell phone to induce Jane Doe to engage in illicit sexual activity. Christoph is also charged with one count of receiving and distributing child pornography.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Indicted for Attempting to Produce Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man who used fake online identities has been indicted by a federal grand jury for attempting to produce child pornography.
Genard Alonzo Toney, 36, of Springfield, was charged in a two-count indictment returned by a federal grand jury in Springfield on Tuesday, Dec. 12, 2017. Toney was arrested yesterday and remains in federal custody pending a detention hearing on Monday, Dec. 18, 2017.
The federal indictment alleges that Toney attempted to use a minor, identified as John Doe, to produce child pornography. The indictment also alleges that Toney received and distributed child pornography from May 9, 2016, to March 31, 2017.
According to court documents, Toney engaged in a pattern of soliciting images of child pornography through the Internet. Toney pretended to be a female seeking a female relationship on a dating website, then began texting with women he met on the dating website. Toney used a cell phone application, which provided him with a fake, anonymous cell phone number, cloaking his own number from identification. A forensic examination on devices seized from Toney by law enforcement officers revealed 283 separate conversations, consisting of 13,676 messages, and images of child pornography.
Toney also engaged in conversations where he pretended to be a woman with a 5-year-old daughter, according to court documents. Toney sent images of female children to others and solicited images of the other users’ children. In other conversations, Toney pretended to have a 4-to-6-year-old son and sent images of a child to other users, asking them to also send him pictures of their sons.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Greene County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lebanon Sex Offender Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., sex offender has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
George Wayne Scott, 62, of Lebanon, was charged in an indictment returned by a federal grand jury on Tuesday, Dec. 12, 2017.
The federal indictment alleges that Scott received and distributed child pornography over the Internet on Feb. 28, 2017.
Scott has prior felony convictions for crossing state lines to engage in illicit sexual activity with a minor, transporting a minor across state lines for illicit sexual activity, coercion and enticement, receiving and distributing child pornography and possessing child pornography. Due to his status as a convicted sex offender, the indictment carries a mandatory minimum penalty of 15 years in federal prison without parole upon conviction.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Missouri State Highway Patrol, the Lebanon, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Administrator Pleads Guilty to Stealing $227,000 from Pettis County Ambulance DistrictRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the former administrator of the Pettis County Ambulance District pleaded guilty in federal court today to embezzling more than $227,000 from the district.
Michael Paul Gardner, 62, of Sedalia, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to a federal information that charges him with one count of bank fraud.
Gardner was hired as the administrator of the Pettis County Ambulance District in December 2012. By pleading guilty today, Gardner admitted that he forged board members’ signatures on 44 checks totaling $123,721. Gardner also admitted that he received $103,928 in unapproved payroll expenses from 2015 to 2017. The total amount embezzled by Gardner from the ambulance district was $227,649.
Gardner was arrested on March 29, 2017. Two board members of the ambulance district came to the Sedalia, Mo., Police Department on March 24, 2017, to present suspicious checks and financial transactions made by Gardner. The board had been notified by Central Bank of Sedalia that there was suspicious activity being conducted on the district’s bank accounts. The board members presented several ambulance district checks to police investigators in which Gardner was the payee and upon which the signatures of two board members had been forged. Board members also presented several checks made out to another person, identified in court documents as “T.R.,” which also contained forged board members’ signatures.
Gardner admitted to investigators that he had been forging board members’ signatures on checks payable to himself or to T.R., then depositing them into either his or her personal bank accounts, for about a year.
The ambulance district employed an independent auditing firm to conduct an intensive fraud investigations to determine the amount of funds misappropriated by Gardner. The firm identified 44 forged checks totaling $123,721.
Under the terms of today’s plea agreement, the government and Gardner will recommend to the court that Gardner be sentenced to two years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Sedalia, Mo., Police Department and the Pettis County Prosecuting Attorney’s Office.
California Man Sentenced to Life in Prison for Large-Scale PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of PCP in the Kansas City area.
Ladronal S. Hamilton, also known as “Black,” 46, of Hawthorne, Calif., was sentenced by U.S. District Judge Gary A. Fenner to life in federal prison without parole.
On May 18, 2017, Hamilton was found guilty at trial of participating in a conspiracy to distribute PCP in Jackson County, Mo., and elsewhere from Jan. 1, 2011, to March 12, 2015. Evidence introduced during the trial indicated that Hamilton supplied numerous associates in Kansas City with kilogram quantities of PCP, which was transported from California through the mail.
Hamilton was the organizer and supplier to large-scale Kansas City PCP distributors, each of whom has been convicted and sentenced in federal court. He organized and arranged the cross-country shipment of numerous multi-kilogram containers of PCP from California.
According to trial testimony, investigators made three seizures of PCP from Hamilton in 2014 that totaled approximately 14 kilograms. In addition, the testimony of cooperating witnesses established that Hamilton distributed additional amounts in excess of 37 kilograms of PCP. Hamilton also possessed firearms in relation to drug trafficking during the timeframe of the conspiracy. One investigator testified that he recovered cocaine and three firearms from Hamilton’s California residence.
A cooperating witness testified at trial that Hamilton used various houses in Kansas City, including his father’s house, as a safe location to receive and re-package large amounts of PCP.
In seeking the life sentence for Hamilton, the government’s court filings refer to the serious nature of the crime and to Hamilton’s extensive prior criminal record, which includes felony convictions for armed bank robbery, second-degree murder, first-degree assault, armed criminal action and possession with intent to distribute a controlled substance. A career offender for violent crimes and narcotic offenses, Hamilton’s s interstate distribution of large quantities of PCP began within three years of his release from federal prison for armed bank robbery as a result of his second revocation from supervised release.
Today’s sentence includes an enhancement for obstruction of justice. Trial testimony from at least two cooperating witnesses support the claim that Hamilton attempted to dissuade or intimidate a witness from testifying against him. One cooperating witness specifically recalled Hamilton stating that he wanted a government witness dead.
Operation Dirty Glass
Operation Dirty Glass was an investigation of a large-scale PCP and crack cocaine drug trafficking organization. More than 20 defendants were indicted and convicted as a result of the investigation, including the primary target, Gerald W. Jones of Kansas City, Mo., who received PCP from Hamilton. In a separate but related, case, Jones was convicted and sentenced to 20 years in federal prison without parole.
Investigators seized a total of approximately 14 kilograms of PCP in a series of Express Mail shipments made by Hamilton to Kansas City, Mo. On Oct. 17, 2014, a postal inspector identified an Express Mail package that had been sent by Hamilton from the La Tiejera, Calif., post office to a Kansas City, Mo., address. The parcel contained three metal canisters, each of which contained approximately two kilograms of PCP. On Nov. 10, 2014, a postal inspector identified two more Express Mail packages that had been sent by Hamilton from California to Kansas City, Mo., addresses. Inside each package, investigators found a metal canister containing approximately two kilograms of PCP.
Hamilton made frequent trips to the Kansas City area. Prior to the discovery of the PCP shipments, the U.S. Postal Inspection Service interdicted two Express Mail envelopes on Oct. 16, 2013, that Hamilton, while visiting Kansas City, had sent back to California. One envelope contained $4,000 and the other contained $7,000, of drug proceeds.
Operation Water Park
Hamilton was also implicated in a separate investigation, Operation Water Park, which resulted in the indictment and convictions of 11 defendants. In early 2015, Hamilton began supplying PCP to Leelon Williams of Kansas City, Mo. Williams pleaded guilty to conspiracy to distribute PCP and was sentenced to 20 years in federal prison without parole.
Williams was arrested on March 12, 2015, when Kansas City, Mo., police officers were dispatched to the area of 26th Street and College to investigate a shooting. Williams was found hiding inside his van, which was parked in an alleyway near the scene of the shooting. (Williams was not involved in the shooting.) Investigators searched the van and found two glass orange juice bottles that contained a total of approximately 1.2 kilograms of PCP, which Hamilton had shipped to Williams from California.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Mexican National Sentenced to 17 Years for Drug Trafficking, Possessing a Machine GunRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court in two separate cases for drug trafficking and for illegally possessing a machine gun and a rifle.
Jonathan Villegas-Escobar, 26, a citizen of Mexico residing in Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to 17 years and seven months in federal prison without parole.
On March 6, 2017, Villegas-Escobar pleaded guilty to possessing a machine gun. Villegas-Escobar also pleaded guilty, in a separate federal indictment, to participating in a conspiracy to distribute methamphetamine and to using a firearm during a drug-trafficking crime.
Villegas-Escobar admitted that the amount of drugs foreseeable to him during the methamphetamine distribution conspiracy is 692.39 grams of pure methamphetamine. As relevant conduct, Villegas-Escobar also admitted responsibility for 5.29 kilograms of cocaine distributed with co-defendant Demond Robins, 36, of Kansas City, Mo.
During the course of the cocaine-trafficking conspiracy, Villegas-Escobar and Robins distributed approximately 1.9 kilograms of cocaine to a law enforcement confidential informant. Law enforcement officers seized approximately $152,675, which equates to approximately 3.392 kilograms of cocaine (based on approximately $45/gram). Additionally, Robins received approximately three kilograms of cocaine from co-defendant Jose Aguayo-Rodriguez, 25, a citizen of Mexico residing in Kansas City, Mo. (To avoid double-counting, only one additional kilogram of cocaine is attributed to Robins.) This results in a total of approximately 6.292 kilograms of cocaine.
Villegas-Escobar also admitted that he carried and used a .40-caliber Hi-Point rifle in relation to a drug-trafficking crime. Villegas-Escobar sold the firearm to another individual during a drug transaction in which he also sold methamphetamine to the same individual.
In the second federal case, Villegas-Escobar admitted that he possessed a machine gun on March 24, 2015. Villegas-Escobar sold another individual a Glock 9mm handgun, which had been converted into a fully-automatic machine gun.
Robins pleaded guilty and was sentenced to 12 years in federal prison without parole for his role in the drug-trafficking conspiracy and for participating in a money-laundering conspiracy. Aguayo-Rodriguez pleaded guilty and was sentenced to three years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Seven Springfield Residents Among Those Indicted for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that seven Springfield, Mo., residents are among 11 defendants indicted by a federal grand jury today for their roles in a conspiracy to distribute at least a kilogram of heroin in Greene County, Mo.
Jovan J. Denson, 39, Gerald E. Pope, 41, Edward J. Smith, 51, Christine D. Jones, 26, Benjamin J.H. Goodman, 22, Earl E. Jones, 49, and Cierra Nash, 24, all of Springfield; Oriola J. Ijaola, 40, of Chicago, Ill.; Deanna J. Miller, 47, of Orlando, Fla.; Amy E. Mitchell, 45, address unknown, and Reginald Perkins, age and address unknown, were charged in a 12-count superseding indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that all of the defendants participated in a conspiracy to distribute one kilogram or more of heroin in Greene County from March 1, 2016, to May 18, 2017.
In addition to the drug-trafficking conspiracy, Denson is charged with five counts of distributing heroin and one count of money laundering. The indictment alleges that Denson used $9,500 from illegal drug trafficking to make a down payment on a vehicle.
Ijaola is also charged with one count of distributing heroin. Miller, Jones and Smith are each also charged with one count of possessing heroin with the intent to distribute.
Pope is also charged with one count of being a felon in possession of a firearm. The indictment alleges that Pope was in possession of a Ruger 9mm semi-automatic pistol on May 18, 2017.
The indictment also contains forfeiture allegations, which would require Denson to forfeit to the government $13,131 seized by law enforcement officers and Pope to forfeit to the government $4,852 seized by law enforcement officers.
Today’s superseding indictment replaces the original indictment, which was returned by a federal grand jury on June 13, 2017. The superseding indictment includes Ijaola and Perkins as additional defendants; Brian J. Brown, 36, and Corbin S. Rice, 26, both of Springfield, were previously charged in the original indictment and have pleaded guilty to conspiracy to distribute at least a kilogram heroin.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Special Assistant U.S. Attorney Jody M. Larison. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Birch Tree Man Indicted for Stealing Timber from National ForestRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Birch Tree, Mo., man was indicted by a federal grand jury today for stealing timber from a national forest.
John R. Marlow, 46, of Birch Tree, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Marlow stole government property worth more than $1,000 between Jan. 1, 2016, and March 20, 2017. Marlow allegedly stole timber from federal property in Oregon County, Mo.
Marlow is also charged with one count of cutting and removing timber from public lands and one count of maintaining a trail without authorization within the Mark Twain National Forest.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Forest Service, the Oregon County, Mo., Sheriff’s Department and the Alton, Mo., Police Department.
Area Law Enforcement Officials Meet to Address Violent CrimeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that area law enforcement leaders met today for a roundtable discussion aimed at improving coordination to reduce violent crime in the metropolitan area.
The purpose of today’s meeting was to bring law enforcement and prosecution partners together to enhance their coordination in combatting violent crime. This is a component of the U.S. Attorney’s Office strategy to develop and implement an enhanced Project Safe Neighborhoods plan, which includes prioritizing violent crime reduction.
Project Ceasefire is the longstanding Project Safe Neighborhoods initiative in the Kansas City, Mo., area, to target felons and others who illegally possess firearms. An enhanced Project Safe Neighborhoods program will include enhancing the working relationships between federal, state and local agencies to reduce violent crime and effectively leverage resources. They will jointly identify the area’s most significant violent crime problems in order to target and prioritize enforcement.
Among the law enforcement officials who addressed today’s gathering regarding their specific agency or department priorities, programs and strategies were:
• Acting U.S. Attorney Tom Larson;
• Kansas City Police Chief Rick Smith;
• ATF Special Agent in Charge George Lauder;
• Jackson County Prosecuting Attorney Jean Peters Baker;
• FBI Special Agent in Charge Darrin Jones;
• Assistant U.S. Attorney Jeff Valenti, Project Safe Neighborhoods Coordinator; and
• Counsel to the U.S. Attorney David M. Ketchmark.Also participating in the discussion held at the ATF Kansas City Field Division office were DEA Supervisory Special Agent M. Todd Hixson, Director Jeffrey B. Stamm of Midwest HIDTA (High Intensity Drug Trafficking Area), Jackson County Sheriff Mike Sharp, Independence Police Chief Brad Halsey, Assistant Special Agent in Charge Gilbert Trill of Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and Acting U.S. Marshal Scott Seeling.
Lathrop Man Pleads Guilty to $1.7 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Lathrop, Mo., man has pleaded guilty in federal court to a $1.7 million fraud scheme related to the sale of his business.
Todd Edwin Rood, 46, of Lathrop, waived his right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner on Wednesday, Dec. 6, 2017, to a federal information that charges him with one count of loan application fraud.
Rood is the former owner of Rood Machine & Engineering (RME). By pleading guilty, Rood admitted that he made false statements to the purchaser’s bank about his assets and liabilities during the sale of his business.
Rood falsified documents in 2015 and 2016 outlining the assets and liabilities of his business in a scheme to defraud RME’s buyers and their financial institution. The total loss amount resulting from Rood’s criminal conduct is $1,347,608.
The purchasers agreed to pay $1,975,208 for Rood’s business and borrowed $1,744,000 from United Community Bank (based in Georgia). But for Rood’s false statements, the bank would not have made a $1,744,000 loan because RME’s value, including its business value and real estate, did not support that loan amount. By altering his bookkeeping, Rood inflated his income by approximately $583,827 prior to the sale.
The court will determine restitution at Rood’s sentencing hearing or at a restitution hearing. Under the terms of his plea agreement, Rood must pay the purchasers $262,000 in restitution for their closing costs and cash infusion into RME, which they made in reliance on the information underlying Rood’s false certification to which he is pleading guilty.
Under federal statutes, Rood is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the FBI.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Andre B. Hill, 45, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. Hill was sentenced as an armed career criminal. The court ordered Hill’s sentence be served consecutively to his sentence in an unrelated state conviction for drug trafficking.
On Aug. 3, 2017, Hill pleaded guilty to being a felon in possession of a firearm. He admitted that he was in possession of a loaded EAA .38-caliber revolver on June 16, 2016.
Kansas City police officers were dispatched to suspicious prostitution activity in the area of East 44th Street and Troost Avenue on June 16, 2016. They encountered Hill and placed him under arrest on two outstanding warrants. After he was placed under arrest, an officer saw the revolver laying in the grass. Three glass pipes that later tested positive for cocaine were found in Hill’s possession at the time of his arrest.
Under federal law, it is illegal or anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hill has two prior felony convictions for sale of a controlled substance, two prior felony convictions for possession of a controlled substance, and prior felony convictions for distributing or manufacturing a controlled substance, tampering and insufficient funds checks.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department.
Ozark Man Pleads Guilty to Counterfeit Airbag SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Ozark, Mo., man has pleaded guilty in federal court to a scheme to sell counterfeit automotive airbags and components online.
Aleksey Illyuk, 28, of Ozark, pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, Dec. 6, 2017, to one count of mail fraud and one count of smuggling goods into the United States.Illyuk admitted that he sold counterfeit automotive airbags and airbag components on his online eBay stores, CarPro 417 and CarPro Electronics. Illyuk received shipments from various Chinese manufacturers of airbags, airbag covers and other items that contained the trademarks of Honda, Toyota, Chevy, Ford and other companies. Each of these imported airbags contained trademarks and markings that made it appear the legitimate holder of the trademark had manufactured the airbags. Illyuk fraudulently marketed these items as airbags that had been manufactured by the legitimate trademark holder, when he knew that the parts were counterfeit and not manufactured by the legitimate trademark holder.
Illyuk sold approximately $120,000 worth of counterfeit items to consumers throughout the United States through his online stores from Jan. 1, 2015, to Aug. 17, 2017. The fact that the airbags and the airbag components parts were counterfeit and not manufactured by the legal holders of the displayed trademark or logo on the item was never truthfully disclosed to the consumers.
Under the terms of his plea agreement, Illyuk must forfeit to the government $103,000 obtained from the proceeds of his illegal scheme, as well as 150 counterfeit Toyota airbags and component parts (including 24 inflators and fully assembled airbags); 77 counterfeit Honda airbags and component parts (including 4 fully assembled airbags); 70 counterfeit Chevy/GMC airbags and component parts; 54 counterfeit Ford airbags and component parts; 207 counterfeit Nissan airbags and component parts (including 2 fully assembled airbags, 102 name plates, and 25 airbag covers); 8 counterfeit Infiniti airbag covers; 10 counterfeit Accura airbags and component parts; 13 counterfeit Hyundai airbags and component parts; 7 counterfeit BMW airbags and component parts (including 5 fully assembled airbags); 4 counterfeit Subaru airbags and component parts; 4 counterfeit Lexus fully assembled airbags; 1 counterfeit Mazada airbag and component part; and $17,000 seized by law enforcement agents.
Under federal statutes, Illyuk is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and IRS-Criminal Investigation.
Mountain Grove Woman Pleads Guilty to Counterfeit Louis Vuitton SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Mountain Grove, Mo., woman has pleaded guilty in federal court to smuggling counterfeit Louis Vuitton material into the United States so that she could make and sell counterfeit merchandise on her website.
Tonya Virtue, 33, of Mountain Grove, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, Dec. 6, 2017, to one count of smuggling goods into the United States.
Virtue admitted that she sold approximately $50,000 worth of counterfeit Louis Vuitton items through her online store, Soul Sisters, to customers throughout the United States. Virtue received shipments of fabric and material affixed with counterfeit Louis Vuitton trademarks and logos from an overseas Chinese manufacturer between Jan. 1 and Sept. 27, 2017. Virtue created counterfeit handbags, purses and other items from the counterfeit fabric, which she sold to consumers who believed they were purchasing items created by Louis Vuitton.
Under the terms of her plea agreement, Virtue must forfeit to the government $50,000 derived from the proceeds of the criminal scheme, as well as 17 Louis Vuitton clutch bags, 34 Louis Vuitton shoulder bags, 4 Louis Vuitton duffle bags, 9 Louis Vuitton wallets, 5 incomplete Louis Vuitton shoulder bags, 3 13-by-55-foot sheets of Louis Vuitton material, 1 15-by-55-foot sheet of Louis Vuitton material, 60 13-by-26-inch sheets of Louis Vuitton material, 36 Louis Vuitton-branded boxes.
Under federal statutes, Virtue is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and IRS-Criminal Investigation.
Mexican National Indicted for Cocaine TraffickingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Mexican national has been indicted by a federal grand jury for possessing more than two kilograms of cocaine thrown from his vehicle while fleeing from police officers.
Rosvel Flores Montantes, 33, a citizen of Mexico residing in Kansas City, Kan., was charged with one count of possessing cocaine with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, Dec. 6, 2017. The indictment replaces a federal criminal complaint filed against Flores on Nov. 15, 2017.
According to an affidavit filed in support of the original criminal complaint, the investigation began with a confidential source who was in contact with a broker in Mexico to engage in a cocaine transaction. Investigators were informed that a transaction would take place in the parking lot of the Super 8 motel in Riverside, Mo.
Flores arrived at the parking lot driving a Ford F-250 and approached a Nissan sedan. Flores got out of his truck, engaged in conversation with the occupant of the other vehicle, then got into the passenger side of the Nissan. Flores got out of the Nissan and retrieved something from the truck, then returned to the passenger seat of the Nissan. Flores got out of the Nissan again, this time carrying a pastel-colored bag, got back into the truck, and began to leave the parking lot.
Officers attempted to make a traffic stop, the affidavit says, because the license plates on the truck belonged to another vehicle. However, upon observing the lights and sirens of the police vehicles, Flores began to elude law enforcement officers by speeding and failing to stop for traffic signals. The F-250 truck began traveling at high speeds onto I-635 North, ignoring the emergency lights and sirens of multiple law enforcement marked and unmarked units.
The F-250 truck performed several evasive maneuvers for approximately seven to 10 minutes in an attempt to evade law enforcement. The F-250 finally came to an abrupt stop going north bound on 69 Highway just past Merriam Lane in Merriam, Kan. Flores and a passenger got out of the truck and attempted to flee from law enforcement officers on foot. They were both arrested.
Investigators found the pastel bag, which had been discarded during the pursuit, by retracing the path of the fleeing vehicle. According to the affidavit, the bag contained four brick-size amounts of cocaine wrapped in dark-colored wrapping, which weighed a total of 2,355 grams.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Clark. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Sentenced for Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute more than six kilograms of cocaine.
Demond Robins, 36, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 12 years in federal prison without parole.
On March 20, 2017, Robins pleaded guilty to participating in a conspiracy to distribute cocaine from May 22 to Dec. 14, 2015, and to participating in a money-laundering conspiracy from Dec. 13, 2013, to Dec. 16, 2015.
Robins admitted that he provided cocaine to co-defendant Jonathan Villegas-Escobar, 26, a citizen of Mexico residing in Kansas City, Mo., who then distributed the drugs to customers and delivered the drug money back to Robins. During the course of this conspiracy, Villegas-Escobar and Robins distributed approximately 1.9 kilograms of cocaine to a law enforcement confidential informant. Villegas-Escobar has pleaded guilty and is scheduled to be sentenced on Dec. 12, 2017.
Robins needed someone to hold the proceeds of his drug sales and to help legitimize those illegal proceeds. During this time period, Robins did not have a job or an otherwise legitimate source of income. Robins’s girlfriend, Constance Anderson, 36, of Kansas City, Mo., assisted Robins in laundering his illicit drug proceeds. Anderson has pleaded guilty and awaits sentencing.
During the conspiracy, Robins provided Anderson money to keep in either bank accounts, a safe deposit box, or elsewhere. Anderson later gave the money back to Robins when he needed it to purchase additional drugs for sale. Robins started out getting $5,000 at a time from Anderson to purchase 18 ounces of cocaine at a time, which he would then sell, but later he increased the amount he would get nearly $10,000 at a time, so that he could purchase larger amounts of cocaine.
Robins provided money (from the proceeds of drug sales) to Anderson, so that she could then purchase vehicles and real estate for him. One of the vehicles she purchased was a 2011 Jaguar XJ from a dealer in Chicago, Ill., for $33,421. Robins admitted that the purchase of a 2008 Chevrolet Tahoe, a 2008 BMW 650i convertible and a 2015 Ford F150 was made with the proceeds of drug trafficking. Anderson also purchased property on Prospect Avenue in Kansas City, Mo. The purpose of these purchases was to transform money from illegal drug sales into legitimate property.
On Dec. 17, 2015, law enforcement agents executed a federal search warrant on Anderson’s safe deposit box. Agents recovered $142,680 in cash from the box, along with various vehicle and property titles, vehicle keys and jewelry. Some of the money found in the safe deposit box was the pre-recorded buy money law enforcement used in purchasing cocaine from Villegas-Escobar. Agents also recovered approximately $9,995 in cash hidden in the trunk of Anderson’s car.
Robins has forfeited the Jaguar XJ and the cash seized by law enforcement agents, as well as any ownership interest in the real estate and other vehicles, to the federal government.
In addition to the approximately 1.9 kilogram of cocaine Robins and Villegas-Escobar sold to the confidential informant, the approximately $152,675 recovered equates to approximately 3.392 kilograms (based on approximately $45/gram). Additionally, Robins received approximately three kilograms of cocaine from Jose Aguayo-Rodriguez, 25, a citizen of Mexico residing in Kansas City, Mo.; to avoid double-counting, only one additional kilogram of cocaine is attributed to Robins. This results in a total of approximately 6.292 kilograms of cocaine. Aguayo-Rodriguez pleaded guilty and was sentenced on June 1, 2017, to three years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Mexican National Indicted for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Mexican national riding on a bus passing through Kansas City, Mo., was indicted by a federal grand jury today after law enforcement officers found 23 pounds of methamphetamine in his carry-on bags.
Luis Carlos Ballesteros-Duarte, 42, a citizen of Mexico, was charged with one count of possessing methamphetamine to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint filed against Ballesteros-Duarte on Nov. 13, 2017.
According to an affidavit filed in support of the original criminal complaint, a police department canine working at a local bus terminal gave a positive alert for the presence of narcotic odor on two duffel bags located in the passenger compartment of a bus traveling from Denver, Colo., to St. Louis, Mo. Officers questioned Ballesteros-Duarte, whom they observed was acting nervously, and learned that the duffel bags belonged to him.
Officers searched the duffel bags and found a total of 23 large bundles of methamphetamine wrapped in clear cellophane, the affidavit says, with a total weight of approximately 23 pounds.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department.
KC Man Pleads Guilty to Contraband Smuggling at Jackson County Detention CenterRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to smuggle contraband cell phones and other items to inmates at the Jackson County Detention Center.
Marion Lorenzo Byers, also known as “Cuddy,” 36, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charge contained in a July 18, 2017, federal indictment.
Byers admitted that he conspired with others – including a corrections officer and an inmate at the Jackson County Detention Center – to smuggle contraband to inmates between May 2 and June 26, 2017. Byers also admitted that he delivered contraband to a co-conspirator, who in turn delivered the contraband to a corrections officer at the detention center, who was to deliver the contraband to an inmate.
By pleading guilty today, Byers acknowledged that this federal conviction provides a sufficient basis to revoke his current probation in an unrelated state case. The government will seek to have whatever sentence is imposed in this case run consecutive to whatever revocation sentence may be imposed in state court.
Under federal statutes, Byers is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.The Travel Act
The Travel Act makes it a crime to use a facility of interstate commerce (such as telephone calls) with the intent to further unlawful activity. The Travel Act’s definition of “unlawful activity” includes bribery in violation of the laws of a state. Missouri state law makes it a crime for a public servant to solicit or accept a bribe in return for violating a known legal duty. This crime is known under Missouri state law as acceding to corruption, and it is a companion or sister statute to the Missouri state statute that makes it a crime for someone to bribe a public servant. These two Missouri state statutes criminalize bribery conduct involving a public servant, both for the person paying the bribe and for the public servant taking the bribe.
Byers admitted today that he conspired to violate the Travel Act by using a facility of interstate commerce (a telephone) to facilitate the promotion of an unlawful activity, that is, acceding to corruption.
This case is being prosecuted by Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI and the Jackson County, Mo., Sheriff’s Department with assistance from the Missouri Department of Corrections, the Kansas City, Mo., Police Department and the Jackson County Detention Center.
KC Man Pleads Guilty to Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to robbing Arvest Bank, after which he changed his appearance by getting his hair and beard shaved off at a nearby barber shop.
Joshua Aaron Hoover, 34, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charge contained in a March 7, 2017, federal indictment.
By pleading guilty today, Hoover admitted that he stole $5,800 from Arvest Bank, 8959 E. 40 Hwy., Kansas City, Mo., on Feb. 22, 2017.
According to court documents, Hoover approached a teller at the bank and twice demanded, “Give me $5,800 or I’ll shoot you in the face.” Hoover instructed her to place the money in an envelope, then fled from the bank on foot.
Hoover then ran to nearby Stadium Cuts, 3300 S. Blue Ridge Cut Off, Independence, Mo. A barber told police that Hoover was out of breath when he came into the business; Hoover told the barber he just ran from work and wanted to get a haircut during his lunch hour. Hoover had most of his hair and his beard cut off, then bought a hat for $20 and changed clothes in the business’s bathroom. Hoover later told investigators that he stopped an unknown person in the area of the barber shop and requested a ride to an area near his house; Hoover said he grabbed an unknown number of $100 bills from the proceeds of the bank robbery and gave them to the driver.
The FBI disseminated surveillance photographs of the bank robbery to local media outlets and almost immediately began receiving tips from both the public and law enforcement that identified the bank robber as Hoover. Hoover was located at Ameristar Casino, where he was preparing to attend a poker tournament, and he was arrested. Hoover had in his possession $2,115 in cash, $2,000 in poker chips, a $1,000 gaming voucher and a preferred member players card. Hoover told police officers he was afraid the serial numbers on the bills could be tracked and decided to exchange the money at the casino to receive clean bills that were not directly related to the bank robbery.
Under federal statutes, Hoover is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jury Convicts Mexican National of Cocaine TraffickingRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Mexican national, stopped en route from Arizona to Ohio, has been convicted at trial of possessing at least five kilograms of cocaine with the intent to distribute.
Adriana Gutierrez-Ramirez, also known as Adriana Peralta, 43, a citizen of Mexico residing in Phoenix, Ariz., was found guilty on Tuesday, Dec. 5, 2017, of the charge contained in an Oct. 18, 2017, superseding indictment.
Co-defendant Luis J. Duarte,59, a citizen of Mexico residing in Phoenix, Ariz., pleaded guilty on Aug. 31, 2017, to possessing cocaine with the intent to distribute. Duarte was driving a 2016 Ford F350 cargo utility truck, with Gutierrez-Ramirez in the passenger seat, when they were stopped by a state trooper on I-44 in Strafford, Mo., on Feb. 25, 2017. Duarte had rented the truck in Phoenix two days earlier for a one-way trip.When the trooper searched the vehicle, he found a kilogram-sized package of cocaine inside a cardboard box containing clothing in the cargo area of the truck and placed Duarte and Gutierrez-Ramirez under arrest. Four more kilogram-sized packages of cocaine were found during a search of the vehicle after it was transported to headquarters.
Duarte admitted that he was solicited by an unidentified person to drive the truck to Ohio. That person gave Duarte $1,500 to rent the truck and for expenses during the trip. Duarte told investigators he was unsure how much he was being paid for the trip but expected to receive payment when he reached the destination. When Duarte picked up the truck, Gutierrez-Ramirez – whom he had never met – was already sitting inside.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about 21 minutes before returning a guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Dec. 4, 2017.
Under federal statutes, Gutierrez-Ramirez is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Missouri State Highway Patrol.
Five St. Joseph Residents Indicted for $2.1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that five St. Joseph, Mo., residents have been indicted for their roles in a $2.1 million conspiracy to distribute methamphetamine.
James Patrick Pardee II, 27, Eleeseea Leann Crail, 25, Johnathan Scott Graf, 29, Michael Robert Ramsel, 26, and Adam Christopher Lowe, 38, all of St. Joseph, were charged in a three-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Nov. 16, 2017. The indictment was unsealed and made public following the arrests and initial court appearances of Pardee and Ramsel, who remain in federal custody. The remaining defendants are currently in custody on unrelated state charges.
The indictment alleges that all five co-defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2015, to Nov. 16, 2017. The indictment alleges the distribution of more than 99 kilograms of methamphetamine during the conspiracy. The five co-defendants are also charged together in one count of conspiracy to commit money laundering in connection with the drug-trafficking conspiracy.
In addition to the conspiracy counts, Pardee is charged with one count of possessing methamphetamine with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require the five co-defendants to forfeit to the government any property obtained as a result of the drug-trafficking conspiracy, including a money judgment of $2.1 million. This represents the amount of money received in exchange for the unlawful distribution of methamphetamine, the indictment says, based on an approximate sale price of $600 per ounce and distribution of at least 3,500 ounces (approximately 99.2 kilograms) of methamphetamine.
According to an affidavit filed in support of the original criminal complaint, Plattsburg, Mo., police officers attempted to conduct a traffic stop for a lane violation on a black Audi A4 driven by Pardee on Sept. 23, 2017. Pardee fled from officers at speeds exceeding 100 miles per hour for approximately nine miles, the affidavit says, until his vehicle crashed into a guardrail. Pardee and a female passenger got out of the vehicle; Pardee was arrested and the female passenger escaped. Officers found a backpack inside the vehicle that contained numerous clear plastic baggies with a total of more than two kilograms of methamphetamine. Investigators later determined that he had recently sold approximately one kilogram of methamphetamine, the affidavit says.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration, the Plattsburg, Mo., Police Department; the Atchison County, Kan., Sheriff’s Department; the Buchanan County Drug Strike Force and Sheriff’s Department; the Jackson County Drug Task Force; the Clinton County, Mo., Sheriff’s Department; the Missouri State Highway Patrol; the Cass County, Mo., Sheriff’s Department; and the Clay County Drug Task Force.
Former NBA Player Pleads Guilty to False Tax Returns, Identity Theft Related to Charity Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former professional basketball player and representative for the National Basketball Players Association (NBPA) has pleaded guilty in federal court to charges related to a charity fraud scheme.
Kermit Alan Washington, 66, of Las Vegas, Nev., pleaded guilty before U.S. District Judge Greg Kays on Thursday, Nov. 30, 2017, to two counts of making a false statement in a tax return and one count of aggravated identity theft.
Co-defendant Patricia Harris, 65, of Las Vegas, also pleaded guilty yesterday. Harris pleaded guilty to making false declarations before a grand jury.
Washington and Harris are among 11 defendants who have pleaded guilty in several cases related to the investigations of an international software piracy conspiracy and charity fraud scheme.
Washington agreed to refer professional athletes to attorney Ronald Jack Mix, 78, of San Diego, Calif., so that Mix could file workers’ compensation claims in the state of California on behalf of the athletes. Mix then agreed to make donations to Washington’s charity, The Sixth Man Foundation, doing business as Project Contact Africa.
Washington accepted approximately $155,000 in donations to his charity, which were actually illegal referral payments from Mix and his law firm. Washington diverted those funds from the charity’s bank account to pay himself or for personal spending. Washington admitted that he failed to account for this income to the charity on Project Contact Africa’s IRS filings during those years.
In a separate but related case, Mix pleaded guilty on May 23, 2016, to filing a false tax return. Mix admitted that he made donations ranging from $5,000 to $25,000 for referrals of athletes, some of whom lived in the Western District of Missouri. Mix then claimed those payments as charitable contributions on his individual tax returns from 2010 to 2013.
Washington also admitted that he accepted approximately $82,025 in contributions to his charity from Reza Davachi, 43, of Damascus, Md., and likewise diverted those funds from the charity’s bank account to pay himself or for personal spending.
In a separate but related case, Davachi pleaded guilty on Oct. 20, 2015, to his role in one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice. Investigators seized more than $20 million in assets from conspirators who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers.
Davachi admitted that he managed the on-line presence of the Project Contact Africa eBay/PayPal charity. Davachi actively used the Project Contact Africa charity’s eBay/PayPal account to sell unauthorized, illicit, and counterfeit software and software components through eBay, and used the charity’s PayPal account to facilitate payments for these software components. By using the charity’s account to sell his items through the eBay charity store, Davachi saved thousands of dollars per month that he would have otherwise had to pay eBay in the form of various fees. During this time, the Project Contact Africa eBay/PayPal account took in approximately $12 million in revenue, and eBay/PayPal sustained losses of approximately $908,231 due to the waived fees.
Customers of the Project Contact Africa eBay charity store were under the impression that “100 percent” of the proceeds of sales were intended to go to the charity when, in fact, only a portion of the proceeds actually went to the charity. The remainder went to Davachi and his company, Rez Candles, Inc. Davachi also admitted that he allowed numerous other individuals to use the Project Contact Africa eBay/PayPal charity store to sell their own items at a significantly reduced amount as compared to other for-profit sales methods on eBay, with the understanding that they would pay back to Davachi a portion of their savings.
By pleading guilty, Washington specifically admitted that he filed a materially false individual tax return on Feb. 18, 2014, and that he filed a materially false Form 990-EZ for his tax-exempt organization on Aug. 20, 2012. On this Form 990-EZ, Washington claimed that Project Contact Africa received $52,069 in income; in reality these charity accounts received approximately $114,774 in income, some of which Washington diverted to his personal accounts and used towards his personal spending.
Washington also admitted that used the name, personal address and business address of another person without lawful authority in numerous state and federal filings on behalf of the charity. The identity theft victim, identified in court documents as “T.G.”, was a resident of Oregon. Washington admitted that he used her identity information so that Project Contact Africa could maintain its active status within the state of Oregon, which enabled the charity to receive the charitable donations from Mix and permitted Davachi to maintain the charity store for his sales on eBay.
Harris admitted that, while under oath before a federal grand jury, she made materially false statements by denying that she played any role in creating and co-authoring false and fictitious board minutes for the Sixth Man Foundation d/b/a Project Contact Africa charity. Harris admitted that she created and co-authored false and fictitious board minutes for purported board of directors meetings in 2012, 2013, 2014 and 2015, which never actually occurred. The information and content contained within these falsified board minutes was relayed to Harris by Washington. She aided in the preparation and falsification of these minutes at Washington’s direction.
Under federal statutes, Washington is subject to a sentence of up to six years in federal prison without parole for the tax counts, plus a mandatory consecutive sentence of two years in federal prison without parole on the identity theft count. Harris is subject to a sentence of up to five years in federal prison without parole. By pleading guilty today, Washington acknowledged that the court may order restitution as related conduct in connection with his personal tax years 2010, 2011, 2012, and 2014, and for the tax years 2010, 2012, and 2013 for the tax returns filed for the Sixth Man Foundation, D/B/A Project Contact Africa.The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Daly and Curt Bohling and Assistant U.S. Attorney Ryan Raybould of the Middle District of Tennessee (formerly of the Department of Justice Tax Division). It was investigated by IRS-Criminal Investigation and Immigration and Customs Enforcement’s Homeland Security Investigations.
Willow Springs Man Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Willow Springs, Mo., man has been indicted by a federal grand jury for receiving and distributing child pornography.
Steven Edward Moffis, 31, of Willow Springs, was charged in an indictment returned by a federal grand jury on Nov. 14, 2017. The federal indictment replaces a criminal complaint that was filed against Moffis on Oct. 18, 2017. Moffis was arrested on Oct. 17, 2017, and remains in federal custody without bond.
The federal indictment alleges that Moffis received and distributed child pornography over the Internet from Feb. 14 through Oct. 12, 2017.
According to an affidavit filed in support of the original criminal complaint, a law enforcement officer identified Moffis’s computer on Sept. 20, 2017, while conducting an online child pornography investigation. Moffis’s computer allegedly shared 7,408 files of suspected child pornography on a peer-to-peer file-sharing network. The officer then learned that a detective in the Boone County, Mo., Sheriff’s Department had downloaded 690 suspected images of child pornography from Moffis’s computer.
On Oct. 6, 2017, law enforcement officers executed a search warrant at Moffis’s residence. According to the affidavit, investigators found one video and 41 images of child pornography on Moffis’s cell phone.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the West Plains, Mo., Police Department, the Willow Springs, Mo., Police Department, the Missouri State Highway Patrol and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."St. Joseph Man Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for attempting to distribute child pornography over the Internet.
Jesse James Gaudette, 40, of St. Joseph, was sentenced by U.S. District Judge Brian C. Wimes to seven years and six months in federal prison without parole. The court also sentenced Gaudette to 10 years of supervised release following incarceration.
On June 6, 2017, Gaudette pleaded guilty to attempting to distribute child pornography over the Internet.
An undercover law enforcement officer in New Haven, Conn., identified Gaudette’s computer utilizing a peer-to-peer file-sharing network. The officer, working undercover, observed Gaudette sharing videos and images of child pornography. According to court documents, officers downloaded at least 109 movie files from Gaudette’s computer on three separate occasions, including movies that were particularly graphic and involved child victims who were very young.
Federal agents executed a search warrant at Gaudette’s residence and seized electronic media. The examination of Gaudette’s electronic media established that Gaudette had no less than 50 videos containing child pornography.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Sentenced to 40 Years for Sexual Exploitation of a MinorRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for enticing a minor to engage in illicit sexual activity and producing child pornography.
Michael William Brooks, Sr., 45, of Springfield, was sentenced by U.S. District Judge Beth Phillips to 40 years in federal prison without parole.
On March 15, 2017, Brooks pleaded guilty to one count of enticing a minor for the purpose of producing child pornography and one count of enticing a minor to engage in illicit sexual activity.
Law enforcement officers were notified of an emergency hotline call in December 2015 that reported Brooks was sexually abusing a 15-year-old victim, identified in court documents as “Jane Doe.” Investigators examined Brooks’s phone in January 2016 and found multiple pornographic images of Jane Doe. More than 200 text messages between Brooks and Jane Doe also were located, in which Brooks discussed having sexual intercourse with Jane Doe.
Brooks admitted that he had sexual intercourse with Jane Doe beginning in August 2015. Brooks also admitted he took the sexually explicit pictures of Jane Doe using his cell phone.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Lawrence County, Mo., Sheriff’s Department, and the Springfield, Mo., Police Department.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Sentenced for Illegal Firearm Following High-speed Motorcycle ChaseRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man who led officers on a high-speed pursuit on a stolen motorcycle at speeds up to 125 miles per hour across three counties was sentenced in federal court today for illegally possessing a firearm.
Matthew Levi Woodward, 39, of Springfield, was sentenced by U.S. District Judge Beth Phillips to seven years and two months in federal prison without parole.
On Sept. 6, 2017, Woodward pleaded guilty to being a felon in possession of a firearm. Woodward admitted that he was in possession of a Heritage Rough Ride .22-caliber magnum revolver with an obliterated serial number when he was arrested on Dec. 1, 2016.
A Billlings, Mo., police officer observed Woodward traveling 72 miles per hour in a 45-miles-per-hour zone at approximately 12:28 a.m. on Dec. 1, 2016. The officer attempted to stop the motorcycle, but Woodward increased his speed and began driving erratically in an attempt to elude the officer. The motorcycle was traveling at speeds in excess of 100 miles per hour. As the motorcycle entered a different jurisdiction, additional law enforcement officers joined in the pursuit. As the motorcycle traveled through Lawrence County, Mo., Woodward operated the motorcycle at speeds between 114 and 125 miles per hour. Law enforcement officers also observed the motorcycle drive into opposite lanes of traffic and make several dangerous passes while eluding officers.
Lawrence County deputies discontinued their pursuit at the Barry County, Mo., line, where Barry County deputies picked up the pursuit. A sheriff’s deputy observed the motorcycle attempt to elude him and travel at speeds between 110 and 115 miles per hour. The sheriff’s deputy pursued the motorcycle into Newton County and as they approached the Granby, Mo., city limits, the motorcycle appeared to have engine problems.
When the motorcycle came to a stop, Woodward was arrested. He was carrying the firearm in a holster on his left hip. The motorcycle had been reported as stolen a few days earlier in Republic, Mo.
According to court documents, Woodward’s high-speed pursuit and his illegal possession of a firearm on Dec. 1, 2016, occurred approximately three weeks after his illegal possession of another firearm in Greene County, Mo. In that incident, Greene County sheriff’s deputies were dispatched to a report of a suspicious vehicle that was parked on private property. Deputies contacted the property owner and were told that the owner had no knowledge regarding the vehicle, but since it was on his property, law enforcement had his permission to check the vehicle. Woodward was inside the truck; because he had difficult standing and speaking and did not know his name, he was transported by ambulance. Woodward had been released on state parole six weeks earlier.
Deputies searched the truck and found a Smith and Wesson .38-caliber revolver, a box of ammunition, a baggie of methamphetamine, drug paraphernalia and burglary tools in the truck. Deputies learned that the VIN for the truck did not match the license plate that appeared on the vehicle that had been reported stolen with the Springfield, Mo., Police Department.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Woodward has repeated convictions for theft, criminal damage to property, numerous narcotics offenses, resisting arrest, domestic assault, burglary, tampering with a vehicle and driving while intoxicated. Between the ages of 18 and 38, Woodward has been convicted 13 different times for 17 different felony and misdemeanor offenses. Woodward’s prior probations or paroles have been revoked on approximately 12 occasions due to new criminal offenses.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Billings, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the Barry County, Mo., Sheriff’s Department.
Parkville Man Sentenced for Computer Hacking, Accessing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Parkville, Mo., man who was under investigation for hacking into his former employer’s computer system, was sentenced in federal court today for both the intrusion charge and for using a computer to view thousands of images of child pornography.
Jacob Raines, 38, of Parkville, was sentenced by U.S. District Judge Howard F. Sachs to six years in federal prison without parole.
On May 23, 2017, Raines pleaded guilty to one count of computer intrusion and one count of accessing a computer in order to view child pornography over the Internet.
Raines worked as the information technology manager for American Crane & Tractor Parts in Kansas City, Kan., from July 2004 until his resignation on March 28, 2014. The company’s new IT manager removed Raines’s computer passwords and made other security changes associated with the transition to a new IT manager. However, while utilizing the computer previously assigned to Raines, the new IT manager noticed that someone had logged into the computer remotely and copied files to an off-site server.
An examination revealed the company’s proprietary source code files and file folders were copied to Raines’s remote server during several sessions from May 16 to May 18, 2014. Law enforcement officers executed a search warrant at Raines’s residence on April 2, 2015, for evidence of the computer intrusion and theft of trade secrets. Copies of the proprietary source code for the company were on Raines’s home computer.
This proprietary source code is considered a trade secret by American Crane & Tractor Parts, which provides it a competitive advantage in its industry. The value of the proprietary source code exceeds $5,000, and the copying of this source code would provide a commercial advantage and a private financial gain to others.
According to court documents, Raines acted against his employer of almost a decade in a manner that could have potentially caused significant financial harm to the company. While it is not clear that Raines transferred the firm’s source codes to a third party once he stole them, it is certain he had the connections and means to provide them to at least one of the firm’s largest competitors.
Investigators also discovered that Raines had used his home computers and hard drives to access child pornography over the Internet since Nov. 13, 2013. Raines utilized peer-to-peer, file-sharing software to search for child pornography. Investigators discovered more than 7,000 files of child pornography images and videos on a DVD. Located in the hard drive of another desktop computer belonging to Raines were over 3,900 thumbnail images and 260 icon images of child pornography carved from unallocated space. Over 6,000 additional images and 25 videos of child pornography were also carved from the unallocated space of a separate loose hard drive belonging to Raines.
According to court documents, a recurring theme in the images Raines possessed and accessed was the graphic depiction of the rape and sodomy of pubescent and prepubescent girls, some as young as babies and toddlers, by adult men. Raines also possessed and accessed numerous images of young boys and girls engaging in sexually explicit conduct with other minors.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI.
Neosho Man Sentenced to 40 Years for Sexual Exploitation of a MinorRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man was sentenced in federal court today for producing child pornography.
James Lyndon McFadin, Jr., 34, of Neosho, was sentenced by U.S. District Judge Beth Phillips to 40 years in federal prison without parole. McFadin has been incarcerated in federal custody since his arrest on Dec. 21, 2015.
On July 7, 2017, McFadin pleaded guilty to six counts of enticing a minor to engage in sexually explicit conduct for the purpose of producing child pornography and one count of receiving and distributing child pornography.
McFadin used six children – four females and two males, who ranged in age from approximately 5 to 16 years old – to produce child pornography between Jan. 1 and Dec. 19, 2015. McFadin video-recorded illicit sexual activity between himself and one of the child victims, identified as “Jane Doe 1” in court documents. McFadin also had Jane Doe 1 to send him sexually explicit images of herself and the other child victims.
Law enforcement officers executed a search warrant at McFadin’s residence and seized a laptop computer, a computer hard drive and a computer tower. Investigators discovered multiple videos and photos of child pornography, including the child victims, on McFadin’s devices and cell phone.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force and the Neosho, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Holts Summit Woman Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Holts Summit, Mo., woman pleaded guilty in federal court today to her role in a conspiracy to distribute methamphetamine.
Jean Elizabeth Sanchez, 52, of Georgia, formerly of Holts Summit, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to participating in a conspiracy to distribute methamphetamine in Callaway County, Mo.
Her husband, Justin Raul Sanchez, 49, of Holts Summit, pleaded guilty to the same charge on Nov. 1, 2016.
Jean and Justin Sanchez were identified by investigators as distributors of large quantities of methamphetamine in the Callaway County area. According to today’s plea agreement, the Sanchezes made three trips to Georgia in March and April 2014 to obtain large quantities of methamphetamine. On each trip, the supplier in Georgia sold them approximately one kilogram of methamphetamine, in a sealed silver coffee can, which they brought back to Holts Summit to distribute.
Jean Sanchez was stopped by state troopers on U.S. Highway 63 in Taos, Mo., on April 21, 2014, while returning from the third trip to Georgia, according to the plea agreement. The trooper located a large silver coffee can that contained 27 small baggies of methamphetamine (totaling .85 kilograms) underneath the third row of seats in the vehicle. The trooper also found a loaded Taurus .380-caliber handgun inside a glove on the front passenger floorboard.
On April 24, 2014, law enforcement officers executed a search warrant at the Sanchezes’ residence. Officers seized two baggies containing methamphetamine, drug paraphernalia, $7,817 and a drug ledger. Justin Sanchez was arrested and admitted to officers that he had been distributing methamphetamine from his residence.
Today’s plea agreement also cites two controlled purchases of methamphetamine by a confidential informant at Sanchez’s residence in April 2014. In each instance, the confidential informant agreed to pay $1,300 for 28 grams of methamphetamine.
Under federal statutes, Jean and Justin Sanchez are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, LANEG (Lake Area Narcotics Enforcement Group), the Missouri State Highway Patrol, the Jefferson City, Mo., Police Department and the MUSTANG Drug Task Force.
Former Blue Springs Business Owner Pleads Guilty to Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Blue Springs, Mo., business owner pleaded guilty in federal court today to tax evasion.
Roy Wayne Guier, 64, of Blue Springs, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of tax evasion.
Guier owned and operated Roy and Son Fencing, which sells and installs a variety of fencing products, from 1982 until 2009. In October 2009, Guier transferred the ownership and operation of the company to his daughter, who leased the business and assets from him. Guier’s daughter, at his direction, made the lease payments to a company operating under the name of DEK Resource Management. Guier’s wife was listed as the general manager of DEK and the only signatory on the company’s bank accounts.
From 2010 through 2014, the amount of rental income deposited into DEK’s bank account on Guier’s behalf totaled $382,522. DEK never filed a federal income tax return for each of those years 2010 through 2014. Guier failed to file any tax returns for 2010 through 2014. The additional tax due and owing for 2010 through 2014 is $38,391.
By pleading guilty today, Guier admitted that he willfully attempt to evade and defeat income tax due and owing by him by using the DEK bank account, as a nominee, to receive rental income from the lease of his fencing business to his daughter, and by using the DEK bank account to pay for his personal living expenses.
Under federal statutes, Guier is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by IRS-Criminal Investigation.
West Virginia Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a West Virginia man pleaded guilty in federal court today to sexually exploiting a minor in the Joplin, Mo., area.
Shannon Calhoun, 32, of Philippi, W. Va., formerly of Neosho, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to the sexual exploitation of a child.
By pleading guilty today, Calhoun admitted that he induced a child to engage in sexually explicit conduct for the purpose of producing child pornography. Co-defendant Ronald Lee Fields, 56, of Joplin, pleaded guilty to the same charge involving the same child victim on Nov. 21, 2017.
According to court documents, law enforcement officers executed a search warrant at Fields’s residence in Joplin on Jan. 30, 2017, and seized a desktop computer, an iPhone 5, two tablet computers, a digital camera, an SD card and a compact disk containing photos. Investigators discovered some pornographic photos of Fields with an approximately 5-year-old child, including photos taken at a motel and at his residence. Data on the photos indicated they were created using Fields’s camera.
Calhoun was identified as the adult performing sexual acts on the child victim in numerous images of the child being sexually abused over a period of several years.
Investigators also interviewed Benjamin Goodwin, 28, of Springfield. Goodwin, a former Springfield YMCA employee who pleaded guilty in a separate case to receiving and distributing child pornography over the Internet, told investigators that he had traded images of child pornography with Fields.
Under federal statutes, Calhoun and Fields are each subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Cuban National Pleads Guilty to Illegally Voting, False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Cuban national formerly residing in St. Joseph, Mo., pleaded guilty in federal court today to charges in two separate indictments.
Leonardo Lleras-Rodriguez, 55, of Kansas City, Mo., a citizen of Cuba formerly residing in St. Joseph, pleaded guilty before U.S. Chief District Judge Greg Kays to the charges contained in two separate federal indictments.
Lleras-Rodriguez pleaded guilty to casting a fraudulent election ballot and, in a separate case, to three counts of aiding and assisting in the preparation of false income tax returns.
By pleading guilty today, Lleras-Rodriguez admitted that he cast a fraudulent ballot in six elections from 2010 through 2014 for federal, state and local candidates, including the presidential election on Nov. 6, 2012. Lleras-Rodriguez also admitted that he prepared fraudulent federal income tax returns for numerous clients.
Lleras-Rodriguez falsely claimed to be a U.S. citizen when he registered to vote in Buchanan County, Mo., on Nov. 5, 2009. Under Missouri law, only persons who are U.S. citizens who have not been convicted of a felony are eligible to vote. Lleras-Rodriguez was convicted in the Middle District of Florida of conspiracy to distribute cocaine on June 27, 2000, and sentenced to 37 months in federal prison. When Lleras-Rodriguez was released from prison on Feb. 7, 2003, he was turned over to Immigration and Customs Enforcement (ICE) for deportation processing. Lleras-Rodriguez was ordered deported from the United States, but due to the inability to obtain a travel document from Cuba, he was placed on an ICE order of supervision until a travel document to deport him to Cuba could be obtained.
Lleras-Rodriguez, who operated a self-owned tax preparation business in St. Joseph, also pleaded guilty to preparing three fraudulent tax returns in February and March 2014 that included false claims for itemized deductions. According to court documents, Lleras-Rodriguez prepared 45 fraudulent tax returns from 2012 to 2014, which resulted in a total tax loss to the United States of $134,898.
Under federal statutes, Lleras-Rodriguez is subject to a sentence of up to five years in federal prison without parole for casting a fraudulent ballot, and a sentence of up to three years in federal prison without parole on each of the three counts of false income tax returns. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. They were investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and IRS-Criminal Investigation.
Columbia Man Indicted for Illegal Possession of a FirearmRead the Press Release
JEFFERSON CITY, Mo. – Thomas M. Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man was indicted by a federal grand jury for possession of a firearm by a convicted felon. That indictment was unsealed today when Gurley appeared before a federal magistrate judge. Gurley remains in federal custody pending his formal arraignment and detention hearing set for November 28, 2017, at 2:45 p.m.
The indictment alleges that between April 1, 2016 and May 22, 2017, the dates being approximate, within Boone County, in the Western District of Missouri, Gurley knowingly possessed a Mossburg, Model 500 A, 12 gauge shotgun and ammunition.
According to the government’s motion to detain, the defendant has a prior felony conviction from North Carolina for felonious restraint in 1997 and is alleged to have shot and killed another individual during the timeframe of the indictment.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant United States Attorney Lawrence E. Miller. It was investigated by the Columbia, Missouri, Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
St. Joseph In-home Health Care Worker Charged with Stealing $180,000 from Former ClientRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a St. Joseph, Mo., in-home health care nursing assistant has been charged in federal court with stealing bank account information from one of her clients to illegally transfer more than $180,000 out of her account.
Ashley N. Garr, 32, of St. Joseph, was charged with wire fraud and aggravated identity theft in a complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Nov. 13, 2017. Garr’s preliminary hearing and detention hearing were held today and she was released on bond.
According to an affidavit filed in support of the federal criminal complaint, Garr worked for the victim, identified in court documents as “PLR,” as an in-home health care nursing assistant for approximately a year, leaving employment in 2015. Garr visited PLR in November 2016, and during that visit allegedly stole her bank account information from her purse or home office. In March 2017, PLR discovered that unauthorized payments were being made from her bank account, which began shortly after Garr’s visit.
The affidavit lists $181,065 that was transferred from PLR’s bank account in a series of 28 payments from Jan. 24 to March 31, 2017.
Larson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and IRS-Criminal Investigation.
Former Marshall Man Pleads Guilty to Child Pornography, Faces 13 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Arkansas man, formerly of Marshall, Mo., pleaded guilty in federal court today to possessing child pornography.
Kenneth Larrechea, 48, of Marshall, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to possessing child pornography. Larrechea also had an apartment in Blackburn, Mo.
Larrechea was identified as one of 158 individuals who received child pornography through Kik (an instant messaging and chat application) from a New York man, who pleaded guilty in a separate case in the Northern District of New York. An FBI agent executed a search warrant at Larrechea’s Marshall residence on Dec. 8, 2015, and seized several electronic media devices, including computers, hard drives and cell phones.
Investigators discovered several images on an SD card in Larrechea’s cell phone of a child victim, approximately 10 or 11 years, getting in and out of a shower. The images were screen shots taken from a video file. The child victim told investigators she was not aware that she was being video recorded or photographed.
More than 400 videos and more than 70 images of child pornography and erotica were located on Larrechea’s cell phone and SD card.
Under the terms of today’s plea agreement, Larrechea will be sentenced to 13 years in federal prison without parole, followed by a 10-year term of supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI and the Marshall, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Osage Beach Woman Sentenced for Stolen Mail, Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Osage Beach, Mo., woman was sentenced in federal court today for a scheme to use stolen mail and stolen identities to cash fraudulent checks at area banks.
Chrystal Lynn Bernstein, 27, of Osage Beach, was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Bernstein to pay $13,101 in restitution to her victims.
On May 9, 2017, Bernstein pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Bernstein admitted that she engaged in a scheme to obtain stolen mail (including checks), then use stolen identities to cash and deposit the checks at several banks in Boone and Camden Counties from December 2016 to Feb. 16, 2017.
Bernstein opened accounts at Central Bank of the Lake of the Ozarks and at Landmark Bank in the names of persons whose names and Social Security numbers she obtained without their permission or knowledge. Bernstein admitted she altered the payee on some of the stolen checks she obtained in order to cash them in the names of a mother and daughter in California whose identities she had stolen. She also admitted that she deposited a stolen check into a fraudulent bank account that was opened under another person’s name. Bernstein also passed a bad check for $826 at a Columbia, Mo., business using a stolen identity.
Bernstein was arrested during a traffic stop on Feb. 1, 2017, in Lake Ozark. She was in possession of a driver’s license, Social Security card and credit card bearing another person’s name. Bernstein was able to bond out and was released.
On Feb. 16, 2017, Bernstein attempted to cash a check at Central Bank. Bernstein was arrested as she returned to her residence, driving a vehicle with a reported stolen license plate. Law enforcement officers searched the vehicle and found checks and money orders in the trunk that had been stolen from two additional victims.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Postal Inspection Service, the Columbia, Mo., Police Department, the Lake Ozark, Mo., Police Department, the Osage Beach, Mo., Police Department, the Camdenton, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Springfield Man Sentenced to 12 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man who collected hundreds of thousands of images of child pornography over the past decade was sentenced in federal court today.
David William Ray, 40, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.On April 5, 2017, Ray pleaded guilty to receiving and distributing child pornography between Oct. 17, 2016, and Jan. 26, 2017.
According to court documents, Ray came to the attention of law enforcement because he was uploading child pornography to Skype. Ray told investigators that he would pose as a single father who was sending sexually explicit images of his daughters in order to trade images of child pornography with other users on KIK and Skype.
Ray, who was actively engaged in trading, downloading, and viewing child pornography for the past decade, amassed well over 500,000 images and videos of child pornography. Ray told investigators that he was addicted to child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Sentenced to 20 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today on charges related to sending and receiving child pornography over the Internet.
Kevin Patrick Carson, 35, of Kansas City, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole. The court also sentenced Carson to serve the rest of his life on supervised release following incarceration.
On Jan. 5, 2017, Carson pleaded guilty to all four counts of a federal indictment that charges him with two counts of attempting to distribute child pornography over the Internet, one count of receiving child pornography over the Internet and one count of possessing child pornography.
According to court documents, law enforcement officers utilized a peer-to-peer file-sharing network to download movie files and images of child pornography, some of which was particularly graphic, from Carson’s computer on two separate occasions between Feb. 28 and April 3, 2013. Investigators executed a search warrant at Carson’s residence and seized various electronic media.
A forensic examiner found 99 videos of child pornography and 593 images of child pornography. Most of the images depicted child bondage and bestiality, according to court documents. One video depicted a baby being raped by an adult male.
Carson admitted that he engaged as many as six underage females (ages 14 to 17 years old) via social networking sites and enticed them to send sexually explicit photographs to him over the Internet. Carson employed a number of tools to get the images. With at least two of the underage females, he referred to them as his “fiancée.”
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Dallas Woman Sentenced for Role in Bank Fraud ConspiracyRead the Press Release
TYLER, Texas – A 44-year-old Dallas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Rachelle Dashner pleaded guilty on May 18, 2017, to conspiracy to commit bank fraud and was sentenced to 21 months in federal prison today by U.S. District Judge Thad Heartfield. Dashner was also ordered to pay restitution in the amount of $7,691,106.50.
According to information presented in court, in the summer of 2013, Albert Davis, 56, formerly of Richardson, Texas, and David Tayce, 67, of Lucas, Texas, approached Community Trust Bank regarding financing for iHeart Care cardiovascular surgical centers that Davis planned to develop across North Texas. The plan, as outlined by Davis, was to open multiple iHeart cardiovascular surgical centers and team up with physicians at each location who would invest in the surgical centers and refer patients to the cardiovascular practices. Over the course of the next year, Davis, Tayce, and Dashner prepared loan documents related to various iHeart Care locations in Denton, Ennis, Mesquite, and Mansfield. Davis and Dashner identified numerous physicians as guarantors in the loan documents without the physicians’ knowledge and authorization. The loan documents were submitted to Community Trust Bank, and based upon various false and fraudulent representations, Community Trust Bank funded numerous loans to iHeart. In many instances, the iHeart facilities for which financing was obtained were never built or made operational. In total, Davis, Tayce, and Dashner submitted fraudulent loan documents to Community Trust Bank and secured five fraudulent loans totaling over $7,500,000.
Davis, Tayce, David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas), and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were charged in a related case in the Western District of Missouri for conspiring to commit wire fraud. From 2008 to 2015, Davis and his co-conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
On Apr. 24, 2017, Davis, was sentenced by U.S. Chief District Judge Greg Kays in the Western District of Missouri to 12 years in federal prison. The court also ordered Davis to pay $19,151,555 in restitution to the victims of the fraud scheme.
On Apr. 25, 2017, Tayce, Hernon, Richard Bryant, and Christina Bryant were sentenced in separate appearances before Judge Kays. Tayce was sentenced to five years and six months in federal prison and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
In a related matter, in 2011, Davis, through his company, LBDS Holding Company, LLC, filed a civil trade secrets lawsuit against Korean-company ISOL Technology, Inc. (LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428) in the Eastern District of Texas. During the 2014 trial of the case, Davis and Hernon testified falsely about business dealings with Cerner Corporation and offered false exhibits to support LBDS’s claim of damages. At the conclusion of the trial, the jury awarded LBDS a verdict of $25 million. When the perjury was discovered, attorneys for ISOL filed an emergency motion for sanctions against LBDS. The district court vacated the verdict, dismissed LBDS’s case with prejudice, and awarded ISOL $738,706.47 in attorney’s fees.
In 2015, Davis and Hernon were charged in the Eastern District of Texas with making false declarations before court. Hernon pleaded guilty and was sentenced on June 13, 2017, to 15 months. Davis pleaded guilty on June 19, 2017, and awaits sentencing.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorney Matthew P. Wolesky of the Western District of Missouri and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas.
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KC Man Sentenced for Meth Conspiracy in Mid-MissouriRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in mid-Missouri.
David Wayne Lederhos, 54, of Kansas City, was sentenced by U.S. District Judge Brian C. Wimes to 13 years in federal prison without parole.
On March 27, 2017, Lederhos pleaded guilty to participating in a conspiracy to distribute methamphetamine from November 2015 to Feb. 10, 2016.
A cooperating individual made a controlled purchase of approximately two ounces of methamphetamine from Lederhos on Feb. 4, 2016. Law enforcement officers executed a search warrant at Lederhos’s residence on Feb. 10, 2016. They found a Ziploc bag that contained eight separate baggies, each of which contained methamphetamine, for a total of 364 grams of methamphetamine. Officers also found a loaded Beretta 12-gauge shotgun, drug paraphernalia and approximately 19 grams of marijuana in the bedroom.
Lederhos told investigators that he had purchased one pound of methamphetamine the previous day for $8,000. He also stated that he purchased approximately one or two pounds of methamphetamine every day or every other day over a four-month period of time.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, the Jackson County Drug Task Force, the Cooper County, Mo., Sheriff’s Department and the East Central Drug Task Force.
Jefferson City Man Pleads Guilty to Illegal Firearm Stolen During Home BurglariesRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to illegally possessing a firearm that he stole during a series of home burglaries.
Brandon Davide Wilkerson, 22, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being an unlawful user of a controlled substance in possession of a firearm.
From approximately September to December 2016, residents of Callaway, Cole, Miller, Moniteau and Cooper Counties reported numerous and related residential burglaries that multiple county sheriff and city police departments investigated. Wilkerson was identified as one of the persons involved.
Wilkerson told investigators that he used methamphetamine for the past two years, and recently he used it every other day. Wilkerson admitted that had sold a stolen firearm to his methamphetamine dealer for $100 worth of methamphetamine.
On Jan. 4, 2017, a Jefferson City police officer saw the person identified as Wilkerson’s source of methamphetamine and arrested him. The officer searched his vehicle and found a Ruger 9mm pistol, which he admitted he had obtained from Wilkerson in exchange for methamphetamine.
In a separate but related case, Stephan Alben Whelan, 22, of Jefferson City, also has pleaded guilty to being an illegal drug user in possession of firearms. Whelan told investigators that he and other individuals were involved in multiple burglaries in the mid-Missouri area. He stated he was involved in so many burglaries that he could not remember where specific items were taken from and when they were taken. He traded the stolen items for methamphetamine. Law enforcement officers executed search warrants and recovered numerous stolen items, including several firearms that had been reported stolen.
Whelan admitted that he stole a Browning 12-gauge shotgun and a Henry Repeating Arms 30-30 caliber rifle from a residence in Lohman, Mo. Whelan traded the firearms, which were eventually recovered by law enforcement, for a quarter-ounce of methamphetamine. Whelan also admitted that he stole a Marlin 30-30 caliber rifle from a residence in Moniteau County, Mo. Whelan told investigators that he was on methamphetamine during the burglary, and after the burglary threw the rifle out the window of a car. The firearm was later recovered.
Under federal statutes, Wilkerson and Whelan each are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Jefferson City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department and the Eldon, Mo., Police Department.
Former Springfield YMCA Employee Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Springfield YMCA employee pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Benjamin Goodwin, 28, of Springfield, pleaded guilty before U.S. Magistrate Judge James C. England to the charge contained in an Aug. 15, 2017, federal indictment. Goodwin has been in federal custody since his arrest and remains in federal custody pending his sentencing hearing.
Goodwin, an employee of the Springfield YMCA at the time of the offense, admitted that he received and distributed child pornography over the Internet between June 11, 2016, and Aug. 3, 2017.
According to court documents, Goodwin initially came to the attention of law enforcement after the administrators of Chatstep submitted a Cybertipline Report regarding his use of its services to post images depicting child pornography. During the course of another investigation, an individual told investigators that he and Goodwin had been trading images depicting child pornography.
On Aug. 3, 2017, investigators contacted Goodwin outside his place of employment, the Springfield YMCA. Goodwin admitted that he had sent approximately 25 images depicting child pornography to the other individual and had received approximately the same number in return.
Under federal statutes, Goodwin is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Liberty Attorney Convicted of Obstruction of Justice for Stealing Victim Restitution FundsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., attorney was convicted in federal court today of obstruction of justice after stealing funds earmarked for victim restitution.
Robert J. Young, II, 48, of Liberty, was found guilty of one count of obstruction of justice by U.S. District Judge Beth Phillips at the conclusion of a one-day bench trial.
Young represented defendant Rodney J. Tatum, who was indicted by a federal grand jury and convicted of mail fraud in connection with the embezzlement of funds from his employer. Young obstructed justice by embezzling money that was given to him by Tatum’s family for the purpose of paying restitution in the criminal case. Young instead made numerous transfers of restitution funds into his personal bank account. Young then spent restitution funds to purchase a motorcycle for himself, to make numerous cash withdrawals, to make rent payments and to make retail purchases.
Young utilized an Interest on Lawyers Trust Account to accept four separate deposits from Tatum’s wife for the purpose of making restitution. Tatum’s wife also made one deposit into Young’s business account for restitution purposes. These checks totaled $42,412. In addition, Young advised Tatum’s wife to draft a check, made payable to Young, as the FBI was pursuing money laundering charges against Tatum and the Tatums’ joint checking account would be frozen. Young stated he would be able to protect the funds in his business account. Tatum’s wife gave Young a check for $20,000. Young had been expected to provide this total $62,412 as partial victim restitution at Tatum’s sentencing hearing on Jan. 21, 2016.
Young was not able to provide the restitution at Tatum’s sentencing hearing and falsely informed the court that the proceeds of assets sold on behalf of Tatum were in his Missouri Lawyer’s Trust Fund. The $62,412 in restitution eventually was paid after Young was relieved from the case. The sentencing hearing was continued to March 3, 2016, at which time the court ordered Tatum to pay a total of $442,810 in restitution. Tatum was sentenced to 15 months in federal prison.
Under federal statutes, Young is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Jury Convicts Joplin Man of Large-Scale Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man has been convicted by a federal trial jury of his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Santiago Soto-Garcia, 24, of Joplin, was found guilty on Thursday, Nov. 2, 2017, of one count of participating in a conspiracy to distribute methamphetamine, one count of possessing methamphetamine with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime. Soto-Garcia was also convicted of a forfeiture allegation that requires him to forfeit to the government $7,000 that was seized by law enforcement officers and was derived from the proceeds of the conspiracy.
Co-defendants Destiny O’Brien, also known as “Destiny Smith,” 21, of Joplin, and Michael L. Gonzalez, also known as “Chavez,” 24, of Texas, have pleaded guilty to their roles in the drug-trafficking conspiracy and to possessing firearms in furtherance of the conspiracy.
Evidence introduced during the trial proved to the jury that Soto-Garcia and O’Brien, assisted by Gonzalez, were multiple-pound distributors of methamphetamine in the Joplin area from late 2014 to August 2015.
After an investigation that began in February of 2015, Soto-Garcia, O’Brien, and Gonzalez were arrested on Aug. 11, 2015, following a traffic stop by a Joplin Police Officer. Soto-Garcia was the driver of a silver 2006 BMW, with O’Brien a passenger in the front seat and Gonzalez in the rear driver’s side passenger seat. When Gonzalez rolled down his window, the officer saw two pistols on the floorboard by Gonzalez’s feet and all three defendants were instructed to get out of the vehicle. The Hi-Point .40-caliber firearm and the Kel-Tec .223-caliber firearm, along with loaded magazines, were removed from the vehicle.
After the occupants and the firearms were removed from the vehicle, a K-9 alerted to the presence of narcotics inside the BMW from outside of the vehicle. When the officer attempted to open the door of the vehicle to conduct an interior search, he found the doors were locked.
The officer determined that Soto-Garcia had locked the doors with the key fob for the BMW and asked Soto-Garcia for the key fob. Instead of handing the fob to the officer, Soto-Garcia took the fob out of his pocket and threw it under the patrol vehicle. As Soto-Garcia began struggling with the officers, O’Brien ran over to the patrol vehicle and obtained the key fob. O’Brien then resisted officers as well. After obtaining the fob and arresting O’Brien and Soto-Garcia, officers searched the vehicle. Joplin police officers found a package that contained approximately a pound of methamphetamine and then arrested Gonzalez as well.
That same day, investigators searched Soto-Garcia’s residence and found a Smith & Wesson .40-caliber handgun, a Tanfoglio .40-caliber handgun, a Sig Sauer 9mm handgun, a North American Arms 22-caliber magnum revolver, ammunition, a bullet-proof vest, a money counter, and approximately five grams of methamphetamine. Investigators then searched another residence being used as a stash house by Soto-Garcia and found a Phoenix Arms .22-caliber handgun and approximately 852.3 grams of methamphetamine hidden in an air vent.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated less than two hours before returning the guilty verdicts to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Oct. 30, 2017.
Under federal statutes, Soto-Garcia is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison, Assistant U.S. Attorney Timothy A. Garrison, and Supervisory Assistant United States Attorney Randy Eggert. It was investigated by the Drug Enforcement Administration, the FBI, ATF, the Missouri State Highway Patrol, the Joplin Police Department, and the Ozark Drug Enforcement Team.
Lee's Summit Man Convicted of Illegally Possessing Street Sweeper ShotgunRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was convicted in a federal bench trial today of illegally possessing a Street Sweeper shotgun.
Ronald F. White, Jr., also known as “Ron Ron,” 35, of Lee’s Summit, was found guilty of one count of possessing an unregistered Street Sweeper 12-gauge shotgun by U.S. District Judge Roseann Ketchmark at the conclusion of a bench trial that began Tuesday, Oct. 31, 2017.Law enforcement officers discovered numerous firearms when they executed a search warrant at the residence of White’s father and step-mother, where he occasionally stayed, on Oct. 31, 2013. The loaded Street Sweeper drum-fed 12-gauge shotgun was found in a duffel bag in the bedroom used by White when he stayed at the residence.
Located in the same duffel bag were a loaded Smith and Wesson .357-caliber revolver, a loaded Romarm Drako 7.62 x 39mm semi-automatic pistol, a loaded Bushmaster semi-automatic carbine, a loaded Stag Arms 5.56-caliber semi-automatic rifle, and 30-round and 90-round-capacity drum magazines for use with either the Bushmaster or Stag Arms rifles.
White has multiple felony convictions in Missouri and one felony conviction in Kansas. However, all of White’s Missouri state court felony convictions resulted in suspended imposition of sentences, and that type of felony conviction cannot be used to support a prosecution for being a felon in possession of a firearm. His Kansas state court felony conviction was expunged so that conviction likewise cannot be used to support a prosecution for being a felon in possession of a firearm.
Under federal statutes, White is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez and Deputy U.S. Attorney Gene Porter. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts KC Man of Illegal Firearm Used in ShootingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today for illegally possessing the firearm he used to shoot another person.
Rico V. Gilliam, 34, of Kansas City, was found guilty of two counts of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Gilliam was in possession of a Glock .40-caliber semi-automatic handgun on Oct. 17, 2014, and again on Nov. 6, 2014. Gilliam also possessed ammunition on Oct. 17, 2014.
Kansas City police officers responded to a residence at about 9:15 a.m. on Oct. 17, 2014, to investigate a shooting. The victim told officers that Gilliam had fired two shots at him during an argument that occurred about 3 a.m. the same day, and one shot had struck him in the leg. He also said Gilliam pointed the gun at him and threatened to shoot him in the face. The victim and his girlfriend then walked to a nearby car lot. They jumped a fence and hid inside a Jeep until they called the police later that morning. Investigators interviewed several witnesses who confirmed the victim’s account.
On Nov. 6, 2014, officers located Gilliam inside a Kansas City, Mo., apartment. The apartment’s resident and several guests left the building while officers attempted to contact Gilliam. Another apartment also was evacuated. A tactical squad negotiated with Gilliam through a loudspeaker to come out of the residence. After approximately 30 minutes, Gilliam left the residence and was arrested. Officers searched the apartment and found the Glock handgun in the attic.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gilliam has two prior felony convictions for armed criminal action and prior felony convictions for unlawful use of a weapon, burglary, attempted robbery and robbery.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about five hours before returning the guilty verdicts to U.S. District Judge Beth Phillips, ending a trial that began Tuesday, Oct. 31, 2017.
Under federal statutes, Gilliam is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes and Special Assistant U.S. Attorney Kim Moore. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts California Man of Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was convicted by a federal trial jury today for his role in a conspiracy to distribute methamphetamine that was shipped to Columbia, Mo., through the mail.
Dijon Rasheed Brown, 25, of Compton, Calif., was found guilty of participating in a conspiracy to distribute methamphetamine, of possessing methamphetamine with the intent to distribute and of being a felon in possession of a firearm.
Postal inspectors identified a suspicious parcel on Nov. 6, 2015, that was mailed from California to the residence of co-defendants Zachary Fennell, 39, and Melissa Guerra, 35, of Columbia, which was suspected to contain a controlled substance. Federal agents recovered 444.8 grams of pure methamphetamine, valued at more than $11,000, from the parcel inside a hollowed-out book.
Federal agents executed a controlled delivery of the parcel on Nov. 10, 2015. Officers conducting surveillance of the residence saw two men leave the house at approximately 9:55 a.m. in a white Chevrolet Suburban. The parcel was delivered at 10:04 a.m. and placed next to the front door. A man inside the residence was observed opening and closing the front door of the residence several times, viewing the package through the screen of the storm door.
The white Chevrolet Suburban, which had previously left the residence, was observed driving past the residence at approximately 10:31 a.m., conducting what appeared to be counter-surveillance. After passing the residence one time, the vehicle returned and parked in the driveway of the residence at approximately 10:33 a.m. Brown and the driver got out of the vehicle; Brown took the parcel off the front porch and brought it inside the residence. At approximately 10:36 a.m., Fennell was observed bringing the parcel back outside the residence and placing it next to the front door. Several occupants of the residence were observed sitting near the front porch.
Shortly thereafter federal agents, assisted by the Boone County Sheriff’s Department Special Weapons and Tactics (SWAT) team, approached the residence to execute the search warrant. Brown ran to the front door of the residence, opened it, and shut the door behind him. SWAT members were unable to breach the door as it had been reinforced. SWAT members entered at another location and agents saw Brown along with co-defendants Kameron Terrell Howard, 26, and Favbion D. Holmes, 40, both of Compton, Calif., running out the back door of the residence attempting to evade law enforcement. They hopped the backyard fence and continued running into an area of overgrown vegetation. Holmes was apprehended a short distance on the other side of the fence. Howard and Brown were apprehended hiding in a pool shed approximately one-quarter to a half-mile away, after a brief manhunt which resulted in the lockdown of a nearby elementary school. Fennell was apprehended in the front yard of the residence. Guerra was apprehended inside the residence.
Law enforcement officers also located three loaded firearms inside the residence, a small amount of methamphetamine in the freezer and in an upstairs bedroom dresser, and various documents that appeared to be ledgers for narcotics transactions.
Among the firearms found inside the residence was a Hi-Point 9mm handgun, which was located in a bedroom used by Brown. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has prior felony convictions for robbery and illegally possessing a firearm.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for less than two hours before returning the guilty verdicts to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, Oct. 30, 2017.
Seven co-defendants in this case have pleaded guilty and await sentencing. Additionally, Howard pleaded guilty and was sentenced to 15 years in federal prison without parole. Calvanisha Yvette West, 27, of California, pleaded guilty and was sentenced to one year and one day.
Under federal statutes, Brown is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jim Lynn and Ashley S. Turner. It was investigated by the FBI, the U.S. Postal Inspection Service, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Two KC Men Charged in Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., men have been charged in federal court for their roles in a conspiracy to commit 10 armed robberies at local businesses.
Jerry D. Patterson, 21, and Michael A. Harris, 19, both of Kansas City, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Monday, Oct. 30, 2017. That complaint was unsealed and made public today upon the arrests and initial court appearances of Patterson and Harris.
The federal criminal complaint charges Patterson and Harris together in one count of conspiracy to commit robbery, one count of robbery and one count of brandishing a firearm in furtherance of a crime of violence.
According to an affidavit filed in support of the criminal complaint, Patterson and Harris were involved in a conspiracy to commit 10 armed robberies at area businesses over a four-week period in September and October 2017.
On Oct. 15, 2017, Patterson and Harris allegedly stole $3,500 at gunpoint from Walgreens Pharmacy, 1536 E. 23rd St., Independence, Mo. They drove Patterson’s red 2007 Pontiac G6 sedan, the affidavit says; after officers discovered the vehicle, Patterson and Harrison abandoned it and fled on foot. Investigators searched the vehicle and found a Glock .40-caliber handgun, an extended .40-caliber magazine, money taken from the robbery, and a number of items used in several of the armed robberies. Agents also found a Kahr Arms .40-caliber handgun (seen in several surveillance videos) in a nearby wooded area.
The affidavit also lists a series of armed robberies allegedly committed during the conspiracy. In all of the robberies, says the affidavit, at least one of the defendants displayed a handgun in a threatening manner. The suspects consistently behaved in a violent and aggressive fashion, the affidavit says, pressing a handgun against the stomach or back of business employees and putting an employee on his knees in one of the robberies.
• On Oct. 14, 2017, Patterson and Harris allegedly stole $4,275 at gunpoint from Walgreens Pharmacy, 9300 Gregory Blvd., Raytown, Mo.;
• On Oct. 14, 2017, Patterson and Harris allegedly stole $3,000 at gunpoint from CVS Pharmacy, 6244 S. Brookside Blvd., Kansas City, Mo.;
• On Oct. 10, 2017, Patterson and Harris allegedly robbed Dollar General, 5105 Blue Ridge Blvd., Raytown, Mo., at gunpoint;
• On Oct. 9, 2017, Patterson and Harris allegedly stole $3,705 at gunpoint from Walgreens Pharmacy, 2261 S. Sterling Ave., Independence, Mo.;
• On Oct. 8, 2017, Patterson and Harris allegedly stole $575 at gunpoint from Domino’s Pizza, 3709 S. Noland Road, Independence, Mo. They also allegedly stole $410 from employees.
• On Oct. 2, 2017, Patterson and Harris allegedly stole $2,500 from CVS Pharmacy, 5310 Blue Ridge Blvd., Raytown, Mo.;
• On Sept. 26, 2017, Patterson and Harris allegedly stole $380 from Family Dollar, 12521 E. 40 Hwy., Independence, Mo.;
• On Sept. 26, 2017, Patterson and Harris allegedly stole $150 and some store items at gunpoint from 7 Eleven, 11107 Grandview Rd., Kansas City, Mo.;
• On Sept. 10, 2017, Patterson and Harris allegedly stole $3,500 from Walgreens, 1100 E. 63rd. St., Kansas City, Mo.
Larson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Raytown, Mo., Police Department.
KC Man Charged with Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with the armed robbery of U.S. Bank.
Terrance R. Haynes, 56, of Kansas City, was charged with one count of armed bank robbery in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Haynes stole approximately $1,629 from U.S. Bank, 1 W. Armour Blvd., Kansas City, Mo., on Monday, Oct. 30, 2017.
According to an affidavit filed in support of the criminal complaint, Haynes approached a teller at about 3:10 p.m. and handed her a demand note that was written on the back of a U.S. Bank deposit slip. The note read, “Give me the money now.” Haynes lifted his shirt, the affidavit says, and the teller noticed he had a black handgun tucked in his waistband. She opened her teller drawer and handed him money. Haynes allegedly stated, “I want the 100’s and 50’s, hurry up.” The teller started to move slowly, the affidavit says, and Haynes stated, “I’m going to shoot you.” The teller gave him 100’s and 50’s. Haynes allegedly took the money and left the bank.
About 20 minutes later, Kansas City police officers identified Haynes, who was driving a 2007 Ford Taurus. The vehicle was pulled over and Haynes was taken into custody without incident.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Church Employee Charged with ArsonRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a church maintenance worker was charged in federal court today with arson after setting a fire at Concord Cultural Center and spray-painting racist graffiti on the front of the adjoining church, Concord Fortress of Hope, in an effort to cover up his burglary.
Nathaniel D. Nelson, 48, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Nelson remains in federal custody pending a detention hearing.
Nelson was a member of the church who was employed as a maintenance worker at the church and cultural center, located at 11040 W. Longview Parkway, Kansas City, Mo. Firefighters were called by a church employee and responded to the cultural center on Sunday morning, Oct. 29, 2017. A fire had occurred in an office inside the building but a sprinkler had activated and extinguished the fire prior to the arrival of firefighters. Investigators concluded that an office chair and other ordinary combustible material had been intentionally ignited using an open flame.
Investigators also discovered racist graffiti spray-painted on the front of the church. A racial slur, the letters “KKK” and a symbol similar to a swastika were visible from the main entrance into the parking lot as members of the congregation arrived for church for Sunday morning services.
The digital video recorder for the video surveillance system that monitored the foyer area and the cultural center’s interior and exterior cameras was unplugged and no longer recording when examined by investigators. Investigators determined that the DVR system lost power sometime after 1 a.m. Sunday, Oct. 29, 2017, and had been intentionally unplugged.
According to an affidavit filed in support of the federal criminal complaint, a review of the DVR system revealed that Nelson was in the foyer area shortly before the DVR system was deactivated. A second DVR, which was still powered on, recorded the video surveillance footage for the interior and exterior cameras located inside and outside of the church, which were separate from the cameras located in the cultural center and foyer. The second DVR, the affidavit says, captured video footage of Nelson spray painting the front of the church. KCPD Deputy Chief Karl Oakman, a member of the church, identified Nelson from the video surveillance footage.
Investigators then interviewed Nelson. According to the affidavit, Nelson told investigators that he went to his office in the cultural center to smoke crack cocaine sometime after 8 p.m. Saturday, Oct. 28, 2017. At some point after getting high, Nelson said he went into the church office area and attempted to force his way into the finance office to steal money. (The finance office was the only room in the church and cultural center he did not have keyed access.) Nelson wasn’t able to break into the finance room so he proceeded into two adjacent offices using his key and took $140 from one office and $94 from another office. Nelson told investigators that he then left the church to purchase more crack cocaine.
Nelson stated that after he purchased four crack rocks for approximately $125, he returned to the church to get high a second time. After Nelson smoked the crack cocaine in his office, he said, he retrieved a pair of bolt cutters, a wrench and a drill bit and attempted to break into the vending machines located in the gymnasium of the cultural center. Nelson said he was only able to steal $2 from the vending machines.
Nelson told investigators that at some point after breaking into the vending machines he left the church to purchase additional crack cocaine from the same source. Nelson told investigators that after he purchased approximately four additional crack rocks he again returned back to the church to get high. Nelson said he only paid $75 for the additional crack cocaine with the promise that he would provide his source $200 in food stamps at a later time.
During the interview, the affidavit says, Nelson admitted to investigators that he intentionally unplugged one DVR system but did not know that video was being recorded on a separate system inside the church, which captured him spray-painting the outside of the building.
According to the affidavit, Nelson told investigators that he intentionally set a fire inside the office area of the cultural center using clothing and paper towels that he had laid on or next to an office chair. Nelson also told investigators he spray-painted the front of the church with inflammatory graffiti and intentionally set the fire to create a diversion and throw investigators off.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Chemed Corp. and Vitas Hospice Services Agree to Pay $75 Million to Resolve False Claims Act Allegations Relating to Billing for Ineligible Patients and Inflated Levels of CareRead the Press Release
Chemed Corporation and various wholly-owned subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, have agreed to pay $75 million to resolve a government lawsuit alleging that defendants violated the False Claims Act (FCA) by submitting false claims for hospice services to Medicare. Chemed, which is based in Cincinnati, Ohio, acquired Vitas in 2004. Vitas is the largest for-profit hospice chain in the United States.
“Today’s resolution represents the largest amount ever recovered under the False Claims Act from a provider of hospice services,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Medicare’s hospice benefit provides critical services to some of the most vulnerable Medicare patients, and the Department will continue to ensure that this valuable benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations that between 2002 and 2013 Vitas knowingly submitted or caused to be submitted false claims to Medicare for services to hospice patients who were not terminally ill. Medicare’s hospice benefit is available for patients who elect palliative treatment (medical care focused on the patient’s relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course. Patients who elect the hospice benefit forgo the right to curative care (medical care focused on treating the patient’s illness). The government’s complaint alleged that Vitas billed for patients who were not terminally ill and thus did not qualify for the hospice benefit. The government alleged that the defendants rewarded employees with bonuses for the number of patients receiving hospice services, without regard to whether they were actually terminally ill and whether they would have benefited from continuing curative care.
The settlement also resolves allegations that between 2002 and 2013, Vitas knowingly submitted or caused to be submitted false claims to Medicare for continuous home care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements. Under the Medicare hospice benefit, providers may be reimbursed for four different levels of care, including continuous home care services. Continuous home care services are only for patients who are experiencing acute medical symptoms causing a brief period of crisis. The reimbursement rate for continuous home care services is the highest daily rate that Medicare pays, and hospices are paid hundreds of dollars more on a daily basis for each patient they certify as having received continuous home care services rather than routine hospice services. According to the complaint, the defendants set goals for the number of continuous home care days billed to Medicare and used aggressive marketing tactics and pressured staff to increase the volume of continuous home care claims, without regard to whether the patients actually required this level of crisis care.
“This litigation and settlement demonstrate the commitment of the U.S. Attorney’s Office to investigate and pursue hospice providers engaging in practices that abuse the Medicare hospice benefit,” said Acting U.S. Attorney Thomas M. Larson of the Western District of Missouri. “The integrity of the Medicare program must not be compromised by a hospice provider’s financial self-interest.”
Vitas also entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) to settle the agency’s administrative claims.
Steve Hanson, Special Agent in Charge, for the U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Healthcare providers who knowingly overbill our programs simply to increase their profits need to be put on notice that such conduct will not be tolerated, and we will pursue any and all remedies at our disposal to protect the tax payer and the Medicare and Medicaid programs.”
In addition to resolving the lawsuit filed by the United States, the settlement resolves three lawsuits filed under the whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene in such a lawsuit, as it did in the three whistleblower cases filed against the defendants. These cases were subsequently transferred to the Western District of Missouri and consolidated with the government’s pending action. The amount to be recovered by the private whistleblowers has not yet been determined.
The settlement was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Western District of Missouri, with assistance from the U.S. Attorneys’ Offices for the Central District of California and the Northern District of Texas and the Department of Health and Human Services Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The civil lawsuits are: United States v. Vitas Hospice Services, LLC, et al., Civil Action No. 13-00449 (W.D. Mo.); United States ex rel. Laura Spottiswood v. Chemed Corporation, et al., Civil Action No. 13-505 (W.D. Mo.), transferred from the United States District Court for the Northern District of Illinois; United States ex rel. Barbara Urick v. VITAS HME Solutions, Inc., et al., Civil Action No. 13-536 (W.D. Mo.), transferred from the United States District Court for the Western District of Texas; and United States ex rel. Charles Gonzales v. VITAS Healthcare Corporation, et al., Civil Action No. 13-00344 (W.D. Mo.), transferred from the United States District Court for the Central District of California.