Western District of Missouri
Press releases recorded for this federal judicial district.
Kirksville Man Pleads Guilty to Stealing $380,000 from FraternityRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kirksville, Mo., man has pleaded guilty in federal court to embezzling more than $380,000 from the Sigma Alpha Epsilon fraternity in Columbia, Mo.
Burt Louis Beard, 62, of Kirksville, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps on Thursday, Sept. 8, 2017, to a federal information that charges him with bank fraud.
By pleading guilty, Beard admitted that he defrauded the Sigma Alpha Epsilon (SAE) fraternity of $380,502 during the period between March 2008 and August 2014.
Beard was the volunteer treasurer from 2000 to 2014. During that time, Beard was responsible for all financial duties related to maintaining the house, paying various vendors and collecting rent checks.
Beard wrote himself in excess of 150 checks. Beard claimed the checks to himself were for reimbursement of personal loans to SAE for direct payments he made to venders. When asked for copies of his personal checks, Beard supplied copies of checks to fictitious vendors or existing vendors that did not have an account receivable for that amount or during that period. In cases where Beard supplied vendor invoices for his reimbursements, vendors said the invoices were not theirs.
SAE elected a new slate of officers for the fraternity in the fall of 2014. During the transition of financial responsibilities from Beard to the new treasurer, numerous red flags began to appear. SAE hired RGL Forensics, a forensic accounting company, to investigate Beard’s wrongdoing. Based on the documentation provided and reviewed, RGL calculated $380,502 as the entire loss from March 2008 through September 2014. The calculated loss consisted of $414,979 in checks issued to Beard from March 2008 through September 2014, less $34,477 in payments that Beard issued to or on behalf of SAE.
Under federal statutes, Beard 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 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 Ashley S. Turner. It was investigated by the FBI.
Former Fort Leonard Wood Man Sentenced to 30 Years for Sexually Abusing a ChildRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Brattleboro, Vt., man has been sentenced in federal court for the aggravated sexual abuse of a 6-year-old child at Fort Leonard Wood, Mo.
Paul Kickery, Sr., 68, of Brattleboro, formerly of Fort Leonard Wood, was sentenced by U.S. District Judge M. Douglas Harpool on Thursday, Sept. 7, 2017, to 30 years and four months in federal prison without parole.
On Jan. 26, 2017, Kickery pleaded guilty to the aggravated sexual abuse of a child.
According to court documents, the victim reported that she had been sexually assaulted by Kickery multiple times over the course of approximately a year. During the time of the sexual assaults, between July 1, 2013, and July 31, 2014, both Kickery and the then-6-year-old victim were residing on the U.S. Army Military Base at Fort Leonard Wood.
When interviewed by law enforcement, Kickery admitted to sexually abusing the victim. Kickery also admitted to molesting a 15-year-old child while he lived in Vermont, and to viewing child pornography on the Internet, mainly of children between the ages of 10 and 15.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Brattleboro, Vt., 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."
KC Man Sentenced to 19 Years for Illegal Firearm, Crack 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 crack cocaine and for illegally possessing a firearm.
Jason L. Clark, 38, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 19 years and seven months in federal prison without parole. Clark was sentenced as an armed career criminal due to his prior felony convictions.
On March 21, 2017, Clark pleaded guilty to participating in a conspiracy to distribute crack cocaine and to being a felon in possession of a firearm.
Co-defendant Carlos A. Hill, 42, of Kansas City, Mo., pleaded guilty on March 15, 2017, to his role in the drug-trafficking conspiracy, to being a felon in possession of a firearm and to distributing crack cocaine. Hill is scheduled to be sentenced on Oct. 11, 2017.
Clark admitted that he and Hill were present at their residence when a confidential informant purchased a stolen Inter Ordnance 7.62 x 39mm rifle on May 25, 2016. When the informant arrived to purchase the rifle, Hill pointed towards the bed of a red El Camino that was parked in front of the residence. The informant picked up a black plastic trash bag with the rifle inside it from the bed of the vehicle. When the informant started to pay Hill $600 for the rifle, Hill directed the informant to pay Clark for the purchase of the firearm. Clark then got into the El Camino and drove away.
On June 14, 2016, the confidential informant again met with Hill at his residence. Hill was packaging crack cocaine into distribution quantities and had approximately 18 ounces of crack cocaine already packaged. The informant saw Clark and others in the kitchen of the residence converting powder cocaine into crack cocaine. The informant saw approximately half a kilogram of cocaine inside the residence.
Clark was arrested on June 21, 2016, following a traffic stop after leaving Hill’s residence. Officers found an FNH 9mm pistol under the center console of the vehicle as well as several plastic baggies of cocaine, marijuana and alprazolam.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Clark has three prior felony convictions for distribution of a controlled substance, two prior felony convictions for possession of a controlled substance, and prior felony convictions for trafficking and for aiding and abetting the distribution of crack cocaine.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Independence Man Sentenced to 10 Years for Illegal Firearm After Shooting at Mother, ChildrenRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for illegally possessing a firearm after he fired at a woman and her children.
Senecca T. Spencer, 41, of Independence, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole. Today’s sentence is the maximum penalty provided under the statute.
On Feb. 2, 2017, Spencer pleaded guilty to being a felon in possession of a firearm. Spencer admitted he was in possession of a Jimenez Arms 9mm pistol and ammunition on May 25, 2016.
Independence police officers were called to an Independence residence on a report of a domestic violence disturbance on May 25, 2016. Spencer had pointed and discharged the firearm in the direction of a woman and her two minor children.
Spencer had already left by the time officers arrived at the residence, but he was located later that same evening and stopped in his vehicle near the intersection of 43rd Street and Phelps. As he was being placed under arrest, a police officer found a 9mm cartridge in Spencer’s front left pocket. The loaded 9mm pistol was discovered in the center console area of the vehicle.
Spencer also admitted that he made threatening telephone calls to the victim while he was incarcerated in federal custody. During these telephone calls, Spencer threatened her with violence, harm and death. Spencer also admitted he contacted the victim’s daughter by telephone. Spencer’s telephone calls were intended to coerce, intimidate, and compel her to become an uncooperative witness/victim in hopes of minimizing his potential prison sentence.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Spencer has four prior felony conviction for assault with a dangerous weapon and seven prior felony convictions for assault and battery, and prior felony convictions for assault and battery on a police officer, armed robbery and possession with intent to distribute/manufacture a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jefferson City Man Pleads Guilty to Cocaine ConspiracyRead 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 his role in a conspiracy to distribute at least five kilograms of cocaine.
Mario Alberto De La Cruz, 43, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Willie J. Epps to the charge contained in a June 15, 2016, federal indictment.
By pleading guilty today, De La Cruz admitted that he participated in a conspiracy to distribute cocaine in Columbia, Mo., and elsewhere from Aug. 2 to Nov. 10, 2015. De La Cruz also admitted that he engaged in several controlled transactions in which he sold cocaine to a confidential law enforcement informant in 2015.
On Aug. 28, 2015, the confidential informant contacted De La Cruz and arranged to purchase two ounces of cocaine. The confidential informant sent a text to De La Cruz stating, “Hey bud leaving for a bachelor party in an hour totally forgot to text yesterday bout 20 of us headed our camping could use 2 big loads of wood (two ounces of cocaine) asap!!!!Leaving in an hour.” The confidential informant was provided with $1,900 in investigative funds. De La Cruz met the confidential informant and exchanged 56 grams of cocaine for the cash.
Under federal statutes, De La Cruz 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 Jim Lynn. It was investigated by the Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Monett Sex Offender 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 convicted sex offender in Monett, Mo., pleaded guilty in federal court today to receiving child pornography over the Internet.
Carl Donald Greiner, 37, of Monett, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a July 20, 2016, federal indictment.
Greiner was convicted of possessing child pornography, sexual misconduct and furnishing pornographic material to a minor in 2004. He was also convicted of statutory rape and two counts of statutory sodomy in 2006.
According to today’s plea agreement, a person using Greiner’s computer reported to police officers on April 30, 2016, that she saw a large amount of child pornography on the computer located in his bedroom, including videos of children ranging in age from 4 to 17. Officers executed a search warrant at Greiner’s residence the same day and seized his desktop computer along with an address book with Internet addresses.
Investigators discovered multiple images and videos of child pornography on Greiner’s computer that had been downloaded from the Internet.
Under federal statutes, Greiner is subject to a mandatory minimum sentence of 15 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 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 Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Monett, 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 Springfield School District Employee Sentenced to 18 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former employee at a Springfield, Mo., middle school was sentenced in federal court today for producing child pornography and distributing child pornography over the Internet.
Carrie Anne Allred, 34, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 18 years in federal prison without parole. Allred was immediately taken into custody at the conclusion of today’s sentencing hearing.
On March 22, 2017, Allred pleaded guilty to one count of the sexual exploitation of a child for the purpose of producing child pornography, and one count of receiving and distributing child pornography.
Prior to her arrest, Allred worked for five years in the kitchen at Wilson Creek Middle School. An officer with the Southwest Missouri Cybercrimes Task Force was conducting an undercover investigation on Sept. 20, 2012, and identified Allred’s computer as sharing images of child pornography over the Internet through a peer-to-peer file-sharing network. Law enforcement officers executed a search warrant at her residence on Jan. 8, 2013, and seized a computer and two hard drives.
According to court documents, Allred video-recorded her dog performing a sexual act on a four-year-old child. Investigators located a substantial amount of child pornography of prepubescent children during their forensic examination of Allred’s electronic devices. Allred also admitted that she broadcasted, via webcam, videos of herself engaged in bestiality with her dogs.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI 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."
West Plains Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Christopher Waldorf, 30, of West Plains, was sentenced by U.S. District Judge Brian C. Wimes to four years and three months in federal prison without parole.
On Nov. 14, 2016, Waldorf pleaded guilty to being a felon in possession of a firearm. Waldorf admitted that he possessed a loaded Taurus 9mm firearm on Sept. 3, 2015.
West Plains police officers were dispatched to a residence on Sept. 3, 2015, in response to a call for gunshots fired. When officers arrived, they determined that Waldorf became involved in an argument with another individual and, during that argument, fired the handgun.
The victim of Waldorf’s assault told officers that as he exited his vehicle, Waldorf approached him in an aggressive manner and said that he was going to kill him. Waldorf produced a pistol and fired one shot over the victim’s head. The victim stated that after the first shot, he grabbed Waldorf’s hand and pushed it away from his head. Waldorf responded by striking him along the side of his head with the pistol. The victim told officers that as Waldorf struck the side of his head, the pistol discharged, nearly striking him. After the second shot Waldorf ran inside his residence.
Officers found Waldorf hiding in a bedroom closet in his residence and placed him under arrest. Officers found the loaded firearm in a dresser drawer.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Waldorf has prior felony convictions for the sale of methamphetamine and possession of a controlled substance.
According to court documents, Waldorf has repeatedly possessed firearms and illegal narcotics and has been repeatedly arrested by the West Plains police department. Less than two months prior to Waldorf’s actions in this case, he was arrested for sale of methamphetamine and possession of ammunition. Approximately three months after this incident, law enforcement officers executed a search warrant of Waldorf’s residence and discovered numerous firearms, ammunition and drug paraphernalia containing drug residue.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Plains, Mo., Police Department.
Springfield Area Business Owner Sentenced for $5.5 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of several Springfield, Mo., area restaurants was sentenced in federal court today for a more than $5.5 million bank fraud scheme.
Bruce Swisshelm, 70, of Battlefield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole. The court also ordered Swisshelm to pay $5,592,583 in restitution.
Swisshelm was the owner of Horned Frog Deli, Inc., and Swisshelm Properties, Inc. These corporations, which specialized in the restaurant industry, owned and developed commercial properties in Springfield and elsewhere. Swisshelm owned and operated Burger King restaurants, Macaroni Grill restaurants, San Francisco Oven restaurants, McAlister’s Deli restaurants, Ebbett’s Field restaurants and a Fog City Coffee restaurant.
On July 22, 2015, Swisshelm pleaded guilty to bank fraud and money laundering. Swisshelm was originally sentenced to one year and one day in prison on Jan. 22, 2016, but the government appealed that sentence. The Eighth Circuit U.S. Court of Appeals found Swisshelm violated the terms of his plea agreement and ordered the case to be re-sentenced.
Swisshelm admitted that he submitted false financial documents to Great Southern Bank in order to receive four commercial loans, totaling $5,592,583, from February to June 25, 2011. The bank relied on the false information provided within the financial statements submitted by Swisshelm when it approved the commercial loans.
According to court documents, Swisshelm knew his businesses had lost money for several years and were on the brink of bankruptcy. He gambled away what little money remained, and Arvest Bank, his original bank, denied numerous requests for extensions on his existing loans and his request for additional financing. Instead of simply declaring bankruptcy or selling off a portion of his assets to potentially preserve a part of his business, Swisshelm perpetrated a multi-million dollar fraud against Great Southern Bank.
Swisshelm intentionally traded on his reputation and deceived officials with Great Southern Bank into believing that his businesses were in good financial heath and he was able to repay these multi-million dollar loans. When asked for his tax documents, he again lied to Great Southern Bank officials and claimed the documents were not complete.
Swisshelm instead submitted financial statements to the bank that claimed his businesses earned a net income of more than $780,000 in 2010. Tax documents submitted by Swisshelm to the Internal Revenue Service revealed those businesses had losses that exceeded $1.8 million in 2010.
Almost immediately after receiving these monies from Great Southern Bank, Swisshelm failed to make even his minimum payment requirements toward the loan. Within approximately 60 days Swisshelm filed for bankruptcy and attempted to have the entire $5.5 million loan excused by the bankruptcy court.
Officials with Great Southern Bank began investigating the representations made by Swisshelm when he applied for these loans. During the bank’s initial investigation and a subsequent investigation by law enforcement, it was determined that nearly every representation made by Swisshelm as to the financial standing of his businesses and restaurants were lies. He claimed that his two primary corporations were either making significant profits or had reversed earlier losses and were breaking even. He also claimed ownership of several restaurants outside the state of Missouri and claimed additional revenue from those businesses as support for approval of his loan request. In truth, both of Swisshelm’s corporations and his associated restaurants were losing vast sums of money. At the time his multi-million dollar loan was approved, his out-of-state restaurants, which he had claimed to Great Southern Bank were making money, had actually been closed, shuttered, or seized by his creditors for outstanding debts owed.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Houston Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Houston, Texas man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Robert Canales, 34, of Houston, Texas, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. Canales was sentenced as a career offender due to his prior convictions for robbery (in which he threatened the victim with a firearm) and possession with intent to deliver cocaine.
On Dec. 21, 2016, Canales pleaded guilty to participating in the conspiracy to distribute methamphetamine in Greene, Polk, Christian, Jasper, Laclede, and Webster Counties from June 1, 2013, through Nov. 29, 2014.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The investigation resulted in the indictment of 28 co-defendants.
According to court documents, Canales assisted co-defendant Nelson Olmeda, also known as “Diego,” 27, of Rosenberg, Texas, who was one of the major suppliers of methamphetamine to the drug-trafficking organization led by Daniel and Kenna Harmon of Republic, Mo. In 2013 through 2014, the Harmon drug-trafficking organization distributed in excess of 45 kilograms of methamphetamine in southwest Missouri. Law Enforcement believe that Canales’s role in the conspiracy was, in part, to provide protection to Olmeda’s drug distribution activity.
On Nov. 4, 2014, law enforcement arrested Olmeda as part of the investigation and seized two pounds of methamphetamine. On the same day, a co-conspirator took officers to a hotel room where Olmeda had been staying in the Lake of the Ozarks. In the hotel room law enforcement officers found another pound of methamphetamine and $20,000. Canales was staying in a separate bedroom at the same hotel, and assisted Olmeda in the transportation of the methamphetamine found in Olmeda’s possession to Missouri.
Canales was arrested on Dec. 22, 2014, while he and a co-conspirator were attempting to deliver a half pound of methamphetamine to a Springfield residence. The person inside the residence, according to court documents, was so confused or high that he called the police when they knocked on his door because he thought they were trying to rob him. Springfield police officers responded and found both men sitting in a car outside of the residence, with Canales in the rear of the vehicle. Officers smelled a strong odor of marijuana when they opened the car. When they searched the vehicle officers found a rolled-up sock containing approximately a half pound (222 grams) of methamphetamine.
Olmeda also pleaded guilty and was sentenced on June 20, 2017, to 20 years in federal prison without parole.
Kenna Harmon was arrested in November 2014. Agents searched various residences and vehicles belonging to Kenna Harmon and her co-conspirators and seized approximately five kilograms of methamphetamine and approximately $128,674. Kenna Harmon has pleaded guilty to being a leader in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm.
Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm. Following his arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Restaurant Owner Sentenced for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Auxvasse, Mo., man has been sentenced in federal court for illegally possessing 21 firearms and three firearm silencers.
Billy Bush Owen, 54, of Auxvasse, was sentenced by U.S. District Judge Stephen R. Bough on Thursday, Aug. 24, 2017, to 18 months in federal prison without parole. The court also ordered Owen to pay a fine of $3,600.
Owen, the owner of Panhead Billy’s BBQ in Kingdom City, Mo., admitted that he was in possession of 21 firearms on Dec. 9, 2015, including handguns, rifles and shotguns, as well as three silencers. Under federal law, it is illegal for anyone who has been convicted of a felony to possess any firearms (including silencers) or ammunition. Owen has prior felony convictions for transporting a controlled substance and possession of a dangerous weapon by an addict.
Owen was being investigated by MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group) when officers executed a search warrant at this residence on Dec. 9, 2015. Officers found 21 firearms, three silencers and 9,337 rounds of ammunition in the residence. Three of the firearms and 3,610 rounds of ammunition were in the bedroom, and the remaining firearms and the suppressors were in a safe in the garage. Officers also seized $35,109, digital scales, a drug ledger and nearly 22 pounds of marijuana from the residence.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Callaway County, Mo., Sheriff’s Department and MUSTANG.
Former Summersville Bank Officer Sentenced for $151,000 Fraud, ID Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Summersville, Mo., bank officer was sentenced in federal court today for a $151,000 fraud scheme in which he took out loans for himself by stealing the identity information of bank customers.
Keith Ray Smith, 44, of Summersville, was sentenced by U.S. District Judge Stephen R. Bough to of two years and one day in federal prison without parole. The court will issue an order for Smith to pay restitution to the bank.
On April 17, 2017, Smith pleaded guilty to one count of making false statements on a loan application and one count of aggravated identity theft.
Smith was employed as the bank loan officer and compliance officer at Community Bank (now Security Bank of the Ozarks) in Summersville. Smith admitted that he took out numerous loans in the names of several bank customers without their authorization. Smith submitted loan applications for varying amounts, totaling $81,040, between 2015 and June 2016. Smith admitted that he used the personal identification information of bank customers, including their bank account information and Social Security numbers, to falsely submit the loan applications.
Smith approved the loan applications for funding, then transferred the monies to his personal bank account and spent the monies to either gamble or pay for personal expenses.
In addition, Smith admitted that he had used his mother’s and brother’s personal information to apply for approximately $70,000 in loans without their knowledge or approval in 2010 and 2011. Smith approved the loans and deposited the proceeds from the fake bank loans into his personal bank account to pay for his gambling addiction. Smith agreed to repay all the money owed in 2012, and his mother and brother agreed to resubmit new loan documents that would take the place of the original false loan documents. Smith’s mother and brother told agents they allowed the new loan applications to be created because they did not want him to get into trouble.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC – Office of Inspector General, the Federal Housing Finance Agency-Office of the Inspector General and the FBI.
Georgia Man Pleads Guilty to $258,000 Identity Theft, Tax Refund SchemeRead the Press Release
Georgia man pleaded guilty in federal court today to using dozens of stolen identities to file fraudulent tax returns seeking $258,063 in refunds.
Jalen Ortez Gude, 40, of Hillsboro, Ga., pleaded guilty before U.S. District Judge Stephen R. Bough to one count of wire fraud and one count of identity theft.
By pleading guilty today, Gude admitted that, between January 2014 and March 13, 2015, he used the stolen identity information of at least 46 victims (including their names, Social Security numbers, and dates of birth) to file fraudulent tax returns and receive tax refunds from both the federal government and the state of Missouri. According to court documents, those victims included residents of Cole County, Mo., whose stolen identity information had been released over the Internet.
The IRS stopped $94,592 in refunds from being processed; as a result, the aggregate amount of restitution due is approximately $163,470 to 10 of Gude’s victims.
Gude opened bank accounts in the names of his identity theft victims so that the IRS and the Missouri Department of Revenue would transfer the refunds to bank accounts he controlled. This process permitted Gude to remain anonymous and to conduct his scheme, in part, from outside Missouri. Gude also used the stolen identity information to submit fraudulent online credit applications at banks and credit card companies.
Under federal statutes, Gude is subject to a sentence of up to 20 years in federal prison without parole for wire fraud, plus a mandatory consecutive sentence of two years in federal prison without parole for identity theft. 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri Department of Revenue – Compliance and Investigation Bureau and the Missouri Department of Revenue – Criminal Investigation Bureau.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man who was involved in a shooting at a local gas station was sentenced in federal court today for illegally possessing a firearm.
Turbo Lindsey Midgyett, 31, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole.
Midgyett pleaded guilty on April 3, 2017, to being a felon in possession of a firearm.
Columbia police officers responded to a gas station in the 1400 block of Rangeline in the early morning hours of March 6, 2016, where shots had reportedly been fired. Officers responded to a chaotic scene, with a large crowd (approximately 100 people) of uncooperative witnesses, and reviewed surveillance video to determine what had happened. Officers located two cars with damage from gunfire and found three 9mm casings. Video from the gas station showed a man pulling out a firearm, which appeared to misfire. The video showed Midgyett, the second shooter, racking a handgun and firing several times in the direction of the first shooter.
Officers went to Midgyett’s residence and spoke with his girlfriend, who told officers that Midgyett is allowed to use her gun and vehicle, and that the gun was usually in the glove box. Officers looked in the glove box and found a loaded Taurus 9mm handgun, which had three rounds missing. The brand of ammunition in the firearm was the same as the three rounds found at the shooting scene. Midgyett was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Midgyett has three prior felony convictions for robbery.
According to court documents, Midgyett and an accomplice robbed a Casey’s convenience store in Columbia on July 25, 2003, holding a store employee in a vehicle while another employee was taken inside to access money from the store safe. A few days later, Midgyett robbed a different Casey’s, ordering employees back into the store so that he could steal money. The night after that, Midgyett robbed yet another convenience store in Columbia.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
California Man Sentenced for $460,000 Fraud SchemeRead 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 a nearly $460,000 bank fraud scheme that involved stolen checks and false identities, with much of the illegal proceeds used to purchase gold coins that remain hidden.
Michael Keefe White, 61, of Winnetka, Calif., was sentenced by U.S. District Judge Beth Phillips to nine years and three months in federal prison without parole. The court also ordered White to pay $288,769 in restitution.
On Feb. 9, 2017, White pleaded guilty to bank fraud, aggravated identity theft and money laundering. White admitted that he obtained checks stolen from the mail, then used counterfeit identification (such as driver’s licenses with his photo and the name of a victim) to open bank accounts in Missouri and other states in which to deposit the stolen checks as well as counterfeit checks modeled from the stolen checks. White then withdrew or wire transferred the money out of the account.
According to court documents, White laundered his bank fraud proceeds through gold coin companies in California; he wired the proceeds of his fraud to purchase at least $227,628 in gold coins in May and June 2016. The court earlier found White breached his plea agreement when he did not truthfully account for the gold coins he bought with proceeds of the bank frauds.
White used numerous counterfeit driver’s licenses to open bank accounts in both Kansas City and Portland, Ore., in a total attempted fraud amount of at least $977,441.
The specific bank fraud to which White pleaded guilty involved an account at a Parkville, Mo., bank in which White deposited a $48,700 counterfeit check. White was arrested at Bank Liberty while trying to redeem a $167,728 check payable to another victim whose identity White had also stolen.
In addition to this case, according to court documents, White committed similar bank frauds in Portland from 2014 to 2016, in which he opened accounts in the names of other men, deposited fraudulent checks, and withdrew $40,614 before the checks were discovered to be counterfeit. White intended to defraud the Portland banks of $517,545. Including his criminal activity in both Kansas City and Portland, the total actual loss from White’s bank frauds is $288,769 and the total intended loss is $977,441.
Court documents note that White, who has never held legitimate employment, has an extensive and uninterrupted criminal history.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, U.S. Department of Treasury – Office of Inspector General and the U.S. Postal Inspector Service.
Taney County Restaurant Owner Pleads Guilty to Tax EvasionRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of a Taney County, Mo., restaurant pleaded guilty in federal court today to tax evasion after confessing his crimes to undercover federal agents who posed as buyers when his business was for sale.
Tony E. Cowden, 63, of Protem, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to five counts of income tax evasion.
Cowden operated Tony’s Pizza House in Protem since April 2008. By pleading guilty today, Cowden admitted that he engaged in a scheme to conceal taxable income from the IRS from April 2008 to January 2015 by skimming from cash sales at the business and not reporting the cash income to the IRS.
Cowden listed his business and property for sale in 2015. Two undercover agents from IRS-Criminal Investigation posed as potential buyers and met with Cowden. Cowden apologized to the undercover agents for not having provable income to substantiate the $599,000 sales price, but stated, “it saves me a lot of taxes.” Cowden admitted to the undercover agents that he “pockets” all the money from the sale of Keno-Lotto tickets and the cash received from the arcade games in his restaurant. Cowden maintained true and correct financials for the business in a black three-ring binder.
Cowden encouraged his customers to pay in cash by offering discounts for cash payments. Cowden concealed the cash he skimmed from the restaurant from his accountant and so evaded paying federal income taxes on that revenue. By omitting a portion of his gross receipts, Cowden falsely claimed he was entitled to the earned income credit.
In addition to $91,037 in federal income taxes for the years 2009, 2010, 2011, 2012, 2013 and 2014, Cowden admitted he owes $12,474 in state income tax and $35,016 in state sales tax for the same period.
Federal and state tax losses for those five years total $138,527. Under the terms of today’s plea agreement, Cowden must pay restitution to the IRS and to the state of Missouri. Cowden must also pay $29,581 to the Social Security Administration for Social Security disability payments that he was not entitled to receive.
Under federal statutes, Cowden is subject to a sentence of up to 25 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 IRS-Criminal Investigation, Social Security Administration – Office of Inspector General and the Missouri Department of Revenue.
Former Cashier for U.S. Navy Morale Welfare and Recreation Center in Japan Pleads Guilty to Theft of Nearly $100,000Read the Press Release
WASHINGTON – A Filipino woman who fled from Japan to the United States before being arrested in Overland Park, Kansas has pleaded guilty to stealing the equivalent of nearly $100,000 at a U.S. Naval base in Japan.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Tom Larson, Acting United States Attorney for the Western District of Missouri, made the announcement.
Cynthia Lopez Creseni pleaded guilty on Friday, Aug. 18, 2017, to theft of public money for stealing the equivalent of $99,068 from the Morale Welfare and Recreation Center (MWR) at the Yokosuka Naval Base in Japan, in violation of 18 U.S.C. § 641.
According to admissions made in connection with the plea, the Naval Criminal Investigative Service (NCIS) was notified about the theft of approximately $85,500 and ¥ 1,620,000 (aggregate value of $99,068) from a safe assigned to Creseni at the MWR cash cage. Creseni, who had worked at the base in various positions since 2000, served as the lead cashier of the game/slot room at the time of the theft.
Creseni officially reported the funds missing from her assigned safe after returning from a vacation to the United States in February 2015. Creseni, who denied taking the money, was placed on administrative leave pending the outcome of an investigation.
Interviews of Creseni’s co-workers revealed that she might have had some financial problems. When investigators attempted to interview Creseni at her residence in Japan, they learned that she had vacated her home, sold it and moved to the Philippines. Efforts were made to locate Creseni in the Philippines, but were unsuccessful. Agents learned that Creseni entered the United States on July 15, 2015.
On Jan. 24, 2017, Creseni was located in Overland Park, Kansas and arrested by federal agents for immigration violations for overstaying her visa.
Sentencing is scheduled for Jan. 4, 2018.
This case is being investigated by the Naval Criminal Investigative Service with assistance from Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Special Assistant U.S. Attorney Kim Moore of the U.S. Attorney’s Office of the Western District of Missouri are prosecuting the case.
Weatherby Lake Police Chief Honored for Law Enforcement CareerRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that Weatherby Lake, Mo., Police Chief Gary McMullin has received the Award for Lifetime Achievement.
McMullin was honored on Thursday, Aug. 17, 2017, during the 15th Annual LECC Training Seminar in Springfield, Mo. The award was presented by Les Kerr, who leads the U.S. Attorney’s Office Law Enforcement Coordinating Committee.
McMullin has served the Weatherby Lake community for 44 years, making him the second-longest-serving chief of police in the state of Missouri. Throughout his service, noted Kerr, McMullin has created an enduring impact on local law enforcement. His leadership and commitment to policing have created a standard of professionalism and a legacy of learning. He set high standards for safety and protocol not commonly seen in small organizations.
After a stint in the U.S. Air Force, McMullin began his career in 1968. This included brief stops at Jackson County, North Kansas City and Lake Waukomis. On Jan. 1, 1974, he became chief of police and continues to serve in this capacity. He attended Kansas City Missouri Auxiliary Police Advanced Training Academy, Missouri State Highway Patrol Academy and the Regional Justice Center for Criminal Justice.
McMullin has received numerous certificates of commendation and appreciation. He was awarded the “Outstanding Young Police Officer Award” in 1977, was the recipient of the prestigious John Edgar Hoover Memorial Gold Award for Distinguished Public Service in 1987 and the Clarence M. Kelly Award in 2013. The National Rifle Association has recognized him as a Distinguished Expert in the field of firearms.
Early in his career, McMullin introduced the concept of community policing to foster a dramatic increase in the community’s trust and faith in his police department that still exists today. He was influential in the growth of his agency. He was the only full time officer when hired; the department supplemented staff with volunteer reserve officers. He was successful in getting the city to move them from volunteer status to receiving a stipend and then to receiving a decent hourly wage. Once again he persuaded the city to move them from reserves to part-time officers, and finally expand to its current force of five full-time and 10 part-time officers.
One of his defining characteristics is his leadership style, which fosters mutual trust, good morale and creates a quality work environment. He has utilized these leadership skills by serving on the board of directors of the Missouri Peace Officers Association of which he was awarded a lifetime membership. He also was granted a Life Member Certificate in the International Association of Chiefs of Police. He is a member of the Missouri Police Chiefs Association, Metropolitan Chiefs and Sheriffs Association, National Rifle Association and Police Marksmen Association. He is a founding member of the Northland Investigators Association, formed to promote collaboration and information sharing among federal, state and local law enforcement.
McMullin has worked tirelessly to obtain skills and equipment that benefit not only his officers but also the community he serves. In the late 70’s with a volunteer staffed ambulance service providing slow response times to his community, he ensured that his officers obtained emergency medical training so they could attend to medical emergencies of his residents. Due to his tireless work seeking funding through donations and community organizations, his agency was one of the first in the area to receive in-car audio/video recording systems, AED’s and body worn camera systems. The significance of this is that many smaller agencies are not able to provide these tools for their officers. He made high standards, officer safety and transparency to his community a priority.
To support the members of the United States Military, he helped form SWAT (Supporting Weatherby Lakes Adopted Troops). Through fundraising efforts and community support, SWAT afforded assistance and encouragement to the adopted troops stationed at Fort Riley, especially during their multiple deployments to Iraq and Afghanistan. SWAT honors these heroes on the Fourth of July, supplies care packages while deployed and hosts functions to create memories with their families when they return.
McMullin is a 32nd degree Mason in the Scottish Rite and a practicing member of the Ararat Shrine.
USPS Agent Honored for $8 Million International Fraud InvestigationRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that today that a an agent for the U.S. Postal Inspection Service and a detective with the Kansas City, Mo., Police Department have received the 2017 Guardian of Justice Award.
U.S. Postal Inspector Matthew Murrow and Kansas City, Mo., Police Detective Sarah Throckmorton were honored on Thursday, Aug. 17, 2017, during the 15th Annual LECC Training Seminar in Springfield, Mo. Murrow was honored for his investigation into an $8 million fraud scheme led by a St. Robert, Mo., woman who conspired with sources in Nigeria to defraud more than 1,000 victims. Throckmorton was honored for her investigation of one of the most egregious stalking and cyberstalking cases ever prosecuted by the Jackson County Prosecutor’s Office.
U.S. Postal Inspector Matthew Murrow
Postal Inspector Matthew Murrow led a four-year investigation into an international fraud scheme in which more than 1,000 victims and approximately $8 million in actual and attempted losses were identified. Murrow’s investigation resulted in the successful prosecution of five defendants and a 12-year prison sentence for the leader, Lisa Barwick-Majeski of St. Robert, Mo.
Barwick-Majeski was the ringleader of a group involved in the distribution of counterfeit US Postal Service (USPS) money orders and counterfeit cashier’s checks. Barwick-Majeski organized the activities of the group, including her mother, neighbors, and friends as they mailed the counterfeit money orders and checks to victims and received wire transfers from the victims, whom Barwick-Majeski had contacted online regarding Craig’s List purchases or Secret Shopper jobs. Many of the victims were disabled or low income and were attempting to work from home when they fell victim to Barwick-Majeski.
Barwick-Majeski communicated with individuals in Nigeria and received victim contact information from people outside of the United States. She also received counterfeit USPS money orders from overseas. Barwick-Majeski wired the money they received from victims to multiple individuals in Nigeria.
In presenting the Guardian of Justice Award to Murrow, Larson noted the extensive searches, surveillance and travel required for the investigation. Murrow coordinated with multiple federal agencies in an effort to identify and prosecute the suspects in Nigeria, but was unable to pursue those charges.
Murrow’s investigation, however, didn’t end with Barwick-Majeski’s conviction. When Barwick-Majeski arrived at the federal courthouse in Springfield, Mo., for her sentencing hearing on August 19, 2016, Murrow observed that she appeared to be faking an injury. She was dramatically struggling with a walking aid, which Murrow had never seen her use before. Barwick-Majeski’s sentencing was continued to Nov. 10, 2016. On that date, Barwick-Majeski again arrived at the courthouse using the walker and struggling dramatically to enter the courthouse. While entering the courthouse, she attempted to fall near one of the court security officers. She then went into the women’s restroom, where she was later found lying on the floor and requesting an ambulance. She was transported by ambulance to the hospital and her sentencing was cancelled.
Murrow, believing this was a ploy by Barwick-Majeski to avoid being sentenced, conducted surveillance at the hospital and observed Barwick-Majeski leaving the hospital with a friend. Murrow observed the friend pull up to the hospital entrance driving Barwick-Majeski’s vehicle. Barwick-Majeski stood up from a wheel chair unassisted and walked to the vehicle. After Barwick-Majeski got into the passenger seat of the vehicle, her friend drove to another part of the hospital parking lot and Barwick-Majeski, without any assistance or limited movement, exited the passenger seat, walked around the vehicle to the driver’s seat, and drove away. Murrow captured this activity on camera, and later recovered the hospital surveillance video as well as the courthouse surveillance video. This information was presented to the court at her Dec. 2, 2016, sentencing hearing to show that Barwick-Majeski had continued her fraud activities, and she was immediately taken into federal custody to begin serving her prison sentence.
KCPD Detective Sarah Throckmorton
Detective Sarah Throckmorton of the Kansas City, Mo., Police Department investigated one of the most egregious stalking and cyberstalking cases ever prosecuted by the Jackson County Prosecutor’s Office. As a result of her investigation, defendant Shelia Wallis was convicted at a bench trial and sentenced to 18 years in prison.
In January 2012, a victim had a six-month relationship with Wallis. After he stopped dating her, Wallis began stalking him, cyberstalking him, and harassing everyone around him, including children. The stalking began with threatening notes, and harassing anonymous text messages. When the frequency and harassment worsened, the victim obtained an order of protection. The victim received a doctored sonogram purporting to show that Wallis was pregnant. Friends of the victim, the victim’s mother, and his new girlfriend all started receiving e-mails or packages. Wallis sent a message to the new girlfriend’s minor daughter. The victim had screws in his tires. Over the next few months, the messages got more personal, and showed Wallis had been watching him. The victim lost several new girlfriends who left him due to the harassment. For example, a former girlfriend had strange men coming to her house because they saw an ad on Craigslist that had been posted by Wallis.
Nine months after the breakup, the victim was still getting harassing messages. Wallis was seen following the victim several times. The victim even caught Wallis going through his trash in the middle of the night. The victim broke his arm when he chased her and fell as she sped away in her car. This harassment continued for months and through the holidays. Several fake e-mail accounts were used by Wallis. Wallis was observed lurking around and following him; she was seen at his daughter’s soccer game. Child custody papers were taped to his neighbor’s fence. New girlfriends had “SLUT” written on glass doors at their home or gates broken, and pizzas repeatedly delivered to their houses. The victim’s new and ex-girlfriends obtained orders of protection.
Wallis was observed following the victim’s minor son walking from the bus stop. The victim’s friends started to get the same treatment — vulgarity written on their homes, messages to their employers, accusations of cheating, threats or messages to their children. Fliers were sent to the victim’s son’s elementary school, accusing the victim of being a sex offender.
In presenting the Guardian of Justice Award to Throckmorton, Larson noted that she not only persisted through many difficulties and led a very challenging investigation, but became a victim herself in the process. E-mails and other messages were sent to her workplace by Wallis. Throckmorton had to move and take other safety precautions.
Working with the U.S. Attorney’s Office and the FBI’s Regional Computer Forensic Laboratory, Throckmorton was able to put her investigation together with the digital evidence obtained from social media services. This helped her identify Wallis’s location and the computers she was using so that a search warrant was obtained for Wallis’s residence. When law enforcement searched Wallis’s home, they found a goldmine of frightening evidence, which led to her being charged in Jackson County in January 2015. This new evidence included the home address of Throckmorton, who herself had now become a target for Wallis. Examiner Mark Johnson at the RCFL found a diary, which detailed step-by-step what Wallis had been doing for years. It was a log of the stalking and harassment, from putting chemicals in the irrigation system of the victim (to kill his lawn), to her repeated following him and his friends and family, to the numerous fake accounts she used to send her messages.
Cyberstalking and stalking cases are difficult to prosecute, Larson noted. This case had a profound impact on these victims, yet individual incidents were difficult to prove and by themselves misdemeanors. However, when Throckmorton was able to paint the complete picture, the true nature of this case became clear.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.
Cass County Captain Honored for Leadership, Community ServiceRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that Capt. Denise Davidson of the Cass County, Mo., Sheriff’s Department has received the 2017 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Davidson was honored on Thursday, Aug. 17, 2017, during the 15th Annual LECC Training Seminar in Springfield, Mo. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office Law Enforcement Coordinating Committee, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Davidson has 29 years of law enforcement experience, 27 with her current agency. She was the first woman hired to work the road for her agency, noted Larson, and has been a mentor and inspiration to other women in law enforcement inside and out of her agency.
Davidson is a respected member and supervisor in her agency and the community. She has followed her mother’s example working with and supporting victims of domestic and sexual abuse at the women’s facility in her area, serving on the board for several years. She has served on the committee for Relay for Life, most recently as vice chair and chair. During her four-year leadership, they raised over $350,000. She has been an avid supporter and served on numerous committees within her school district.
Davidson has always had a passion for working with victims. As a young deputy, she was called in to assist with the interview of an abducted and sexually abused 19-year-old woman who had escaped her abusers. In 1990, new techniques of interviewing and dealing with victims of sexual assault were unfolding, and Davidson took the initiative to learn these techniques. The victim said of Davidson’s involvement: “The compassion and professionalism showed to me changed my life. The most important words that have ever been spoken to me were uttered by (Davis): ‘I believe you, this is not your fault.’ She allowed me to find justice, to heal and to work as a victim’s advocate to help future victims. Because of her, I was truly free to move out of victimization and into being a survivor. She’s a life changer.”
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847. He was appointed the first sheriff of Sullivan County, Mo., in 1845. He was in office a little over two years, but he was known to be an honorable, hardworking man intent on protecting the residents of his community. Sheriff Morelock was shot and killed during a court‑ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Two Detroit Men Sentenced for Robbing Springfield Jewelry StoreRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Detroit, Mich., men were sentenced in federal court today for robbing a Springfield, Mo., jewelry store.
Justin B. Anderson, 33, and Mark Anthone Pitts, 32, both of Detroit, were sentenced in separate appearances before U.S. District Judge Beth Phillips. Anderson and Pitts were each sentenced to five years in federal prison without parole. The court also ordered them to pay $78,374, for which they are jointly and severally liable.
Anderson and Pitts each pleaded guilty to robbing Maxon’s Diamond Merchants, 2622 S. Glenstone Ave., Springfield, on Sept. 1, 2016.
An unknown African-American male was buzzed through the secured front door of the jewelry store. When the male entered the store, he refused to close the front door. Employees approached the male, telling him to close the door. When the individual refused to shut the door, the employees attempted to push him out of the store. The male then physically shoved an employee as he kept the front door open.
Anderson and Pitts then entered the store. They pulled out small sledgehammers, causing employees to retreat from the front of the store out of fear of being harmed. Anderson and Pitts used the sledgehammers to break the glass counters and display cases that contained Rolex watches. Anderson and Pitts then grabbed several Rolex watches and fled from the store. Officers later determined that 11 Rolex watches, valued at a total of $118,000, were stolen in the robbery.
Cell phone video from a store employee showed the getaway car – a 2000 Dodge Stratus that had been stolen from a local Target department store earlier that day – waiting for the three men. Anderson and Pitts, however, failed to escape in the getaway car, which left the scene without them. Pitts was arrested after store employees who followed him took police officers to his location.
Pitts told officers that he did not specifically threaten an employee of Maxon’s Diamond Merchants, but if they had actively resisted the robbery, he would have used his sledgehammer to physically assault the employees.
This case was prosecuted by Assistant U.S. Attorneys Patrick Carney and Nhan D. Nguyen. It was investigated by the FBI and the Springfield, Mo., Police Department.
Six More Defendants Plead Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that six more defendants have pleaded guilty in federal court to their roles in a conspiracy to distribute methamphetamine in Greene County, Mo.
Adrian Ortiz-Corrales, 42, of Las Vegas, Nev., pleaded guilty before U.S. Magistrate Judge David P. Rush today to 10 counts charged against him in an indictment returned on Sept. 28, 2016. Specifically, Ortiz-Corrales pleaded guilty to counts of conspiracy to distribute methamphetamine and conspiracy to commit money laundering, six counts of money laundering, and counts of possessing methamphetamine and heroin for distribution.
Gary Lee Driggers, 65, of Springfield, Mo., pleaded guilty to his role in the drug-trafficking conspiracy on Tuesday, Aug. 15, 2017. William Frank Eft, 67, and Williams David Watts, 59, both of Springfield, pleaded guilty to the same charge on Monday, Aug. 14, 2017. Richard Todd Sherwood, 59, of Willard, Mo., and Eduardo Diaz, 53, of Las Vegas, each pleaded guilty to the same charge last week.
In total, the quantity of pure methamphetamine involved in the conspiracy, which lasted from October 2013 to Feb. 29, 2016, weighed in excess of 4.5 kilograms.
Patrick R. Brigaudin, 55, of Springfield, and Gayla Rochelle Phillips, 42, of Willard, have also pleaded guilty to their roles in the drug-trafficking conspiracy as well as to participating in the related money-laundering conspiracy.
In March 2015, a shipment of approximately 15 pounds of pure methamphetamine was interdicted by law enforcement officers. Three persons were arrested following a controlled delivery of the methamphetamine to a Springfield hotel. Brigaudin admitted that he attempted to possess some or all of the methamphetamine, which he intended to distribute to others. Brigaudin also admitted to distributing methamphetamine on several occasions in 2015 and 2016.
On Feb. 29, 2016, Diaz and Ortiz-Corrales transported approximately 12 pounds of methamphetamine and six pounds of heroin to Brigaudin’s residence. While they were removing the methamphetamine from a vehicle, they and Brigaudin were arrested.
Watts admitted that he made his residence available to store methamphetamine. Driggers, Eft and Sherwood each admitted that he obtained methamphetamine from Brigaudin, which he intended to distribute to another person.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, COMET (the Combined Ozarks Multijurisdictional Enforcement Team) and the South Central Drug Task Force.
Woman Pleads Guilty, Man Sentenced in $2.25 Million Internet Steroids DistributionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Venice, Calif., woman pleaded guilty in federal court today to her role in a $2.25 million conspiracy to sell anabolic steroids over the Internet.
Brittainy N. Baker, 29, of Venice, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to manufacture and distribute anabolic steroids from December 2011 to February 2016.
In a separate but related case, Michael G. Peters, 29, of Pelham, New Hampshire, was sentenced today to three years in federal prison without parole. The court also ordered Peters to forfeit to the government $2.25 million, which was derived from the proceeds of the illegal drug trafficking.
Conspirators operated an Internet-based company, Power Trip, which sold various anabolic steroids to customers (including athletes and minors) throughout the United States. Conspirators required customers to pay for the steroids by using various debit cards. Customers used names and account numbers for these debit cards that were provided by conspirators. Conspirators used stolen identities to produce or obtain debit cards, such as Green Dot MoneyPak, MyVanilla, ReloadIT, NetSpend ReloadIT and BlackHawk. They required their customers to send payments to these cards in order to conceal and disguise the proceeds of the illegal transactions.
Aaron Vincent Schweidler, 32, of Smithfield, N.C., formerly of Weston, was sentenced to four years in federal prison without parole for his role in the conspiracy and for money laundering. The court also ordered Schweidler to forfeit to the government $2.25 million, which was derived from the proceeds of the illegal drug trafficking, and his residence in North Carolina. Nicole R. Lyne, 27, also of Smithfield, N.C., and formerly of Weston, was sentenced to five years of probation. Samuel C. Miller IV, 30, of Annapolis, Md., has also pleaded guilty and awaits sentencing.
Schweidler began operating this online anabolic steroid distribution business in late 2011 in Utah. Schweidler quickly sought out assistance from other conspirators, including Baker and Peters, to help collect the proceeds from the illegal drug sales. Eventually Schweidler, Baker and Peters relocated the operation to North Carolina. In 2013 Schweidler and Peters relocated the operation again to the Kansas City, Mo., area, but Baker did not relocate with them.
During Baker’s involvement in the conspiracy, she assisted in the operation by transferring over $9,000 in funds via Western Union from the United States to China to purchase raw materials utilized in the manufacture of anabolic steroids. Baker further assisted in the operation by collecting the proceeds from the illegal drug sales from customers.
Baker allowed her accounts (including Green Dot, Paypal, Bancorp, and US Bank) to be used for customer to make payments for the purchase of anabolic steroids. Baker received customer funds loaded to her Green Dot and Banccorp in excess of $30,000. Baker also received customer funds loaded to her Paypal account in excess of $35,000.
Baker assisted Schweidler by making cash deposits of drug proceeds in his bank account, purchasing postage for shipping anabolic steroids to customers and by dropping off packaged anabolic steroids for shipment at U.S.P.S. locations in Kansas City. In exchange for Baker’s services, Schweidler paid her a percentage of the proceeds collected and an amount per package she shipped.
During the early stages of the conspiracy Schweidler was the leader of the conspiracy. Over time Peters also became more involved with Schweidler in purchasing supplies and assisting in the steroid manufacturing process, as well as handling online customer orders and shipping steroids to customers.
Lyne became involved in the conspiracy when Schweidler and Peters relocated the operation to the Kansas City, Mo, area, in 2013. Lyne rented a residence in the Kansas City area that was used by conspirators to manufacture the steroids. Lyne also allowed conspirators to manufacture anabolic steroids at her residence in Weston.
Eventually Schweidler turned over more operational duties to Peters, who recruited Miller to move to Kansas City to assist in the operation. In the fall of 2014, Peters and Miller took over operational responsibilities for PowerTrip and relocated the operation back to North Carolina in an effort to avoid law enforcement detection of the operation.
During the conspiracy Schweidler personally sent in excess of $176,000 in drug proceeds to China via Western Union and MoneyGram to purchase additional raw materials to manufacture anabolic steroids.
According to Schweidler’s plea agreement, a reasonable conservative estimate of the dosage units of anabolic steroids which were reasonably foreseeable to Schweidler is over 60,000 dosage units of Testosterone Propionate, Halotestin, and other anabolic steroids. This estimate is based upon the ingredients and amounts indicated in the steroid recipe notebook recovered when Peters and Miller were arrested in North Carolina.
Utilizing the least expensive raw ingredients for the manufactured finished product (Testosterone Propionate), and utilizing the known dollar amount of raw ingredients purchased by conspirators (approximately $200,000, less shipping costs), would yield nearly 1 million grams of raw materials that could manufacture approximately 90,000 vials (approximately 900,000 dosage units based upon a 10 – 100mg dosage unit per vial). PowerTrip sold this product for $25 per vial, which results in a conservative estimate of gross proceeds of at least $2.25 million in sales.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.
Former Springfield YMCA Employee 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 former Springfield YMCA employee has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Benjamin Goodwin, 28, of Springfield, was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, Aug. 15, 2017. Goodwin, an employee of the Springfield YMCA at the time of the offense, was arrested this morning.
The federal indictment alleges that Goodwin received and distributed child pornography over the Internet between June 11, 2016, and Aug. 3, 2017.
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 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."
Columbia Man Pleads Guilty to Smuggling K2 from ChinaRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to smuggle chemicals into the United States from the People’s Republic of China, which were used to manufacture synthetic cannabinoids, commonly referred to as K2.
Wesley Adam Upchurch, 30, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to conspiracy to smuggle goods into the United States.
By pleading guilty today, Upchurch admitted that he and other conspirators purchased various synthetic cannabinoids in powder form from China between March 1, 2011, to March 27, 2014. The packages containing these imported chemicals often bore misleading labeling, including manifests or declarations, regarding the contents, in order to avoid detection by law enforcement officers. These chemicals were combined with other ingredients, such as generic potpourri, then packaged and sold at various retail outlets.
Upchurch admitted that he wire transferred a total of $250,500 to vendors in China as payment for the illegal shipments. Periodically, Upchurch and others ordered new chemicals in an attempt to avoid federal drug scheduling regulations, while still producing synthetic cannabinoids which created a “high” and had similar physiological effects as controlled substances.
Upchurch is among 18 defendants who have pleaded guilty in this case, four of whom have been sentenced.
Co-defendant Kent Allen Holtz, 46, of Kaiser, Mo., pleaded guilty to participating in a conspiracy to commit mail fraud and awaits sentencing. Holtz admitted that he distributed synthetic cannabinoids through Artistic Impressions, Fat Tobes Tattoo and Straight Aces. Holtz distributed approximately 310,500 grams (3.1 kilograms) of synthetic cannabinoids. Holtz charged his customers an average price of $2 per gram. Between April 30, 2010, and Dec. 31, 2012, Holtz deposited proceeds from these sales in the aggregate amount of approximately $534,093.
Holtz and others solicited and filled wholesale orders of Kryp2nite, Jolly Roger, Aces & Eights and other packaged synthetic drugs to Dynamic Scents, owned by co-defendants Alexander Vladimir McMillin, also known as “Shasha,” 33, Matthew Ashby Hawkins, 42, Patrick Ross Hawkins, 35, and Molly Jane (Hawkins) Charmichael, 40, all of Columbia – who have also pleaded guilty to the mail fraud conspiracy and await sentencing. Dynamic Scents then resold those products throughout the state of Missouri and elsewhere, to retailers who sold those products to end users.
Holtz also sold synthetic cannabinoids to numerous businesses, including Bocomo Bay, Inc., Puff-n-Snuff, Smellgoodz, and Mozark Products.
Between Feb. 2, 2010, and May 25, 2012, Holtz caused ThirdEye (and its successor entities, Thirdeye, Inc., and 3RDI, LLC) to mail 86 parcels containing Kryp2nite, a synthetic cannabinoid product. Payments for these Kryp2nite shipments totaled $194,700.
The synthetic drugs manufactured by Holtz were labeled as “incense,” “herbal incense,” “potpourri,” “therapeutic potpourri” and other misleading substances that were “not for human consumption” when, in fact, these products were synthetic drugs intended for consumption in order to obtain a physiological “high.” When sold at retail stores, these products were often located next to products and paraphernalia used for smoking the substances.
Under the terms of today’s plea agreement, Upchurch is subject to a sentence of five 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the Brookfield, Mo., Police Department.
KC Woman Sentenced for Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for using stolen Social Security numbers in a scheme to defraud a series of landlords.
Twyla Lashelle Adair, 41, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to four years and six months in federal prison without parole. The court also ordered Adair to pay $18,497 in restitution.
On April 13, 2017, Adair pleaded guilty to three counts of misuse of a Social Security number and one count of aggravated identity theft.
According to court documents, Adair used the Social Security numbers of four different persons over a period of four years (beginning in 2012) to apply for apartments where she would live for close to a year, abandon the apartment with large amounts of rent unpaid, then move into another apartment using another Social Security number to repeat the process all over again. Adair perpetrated a fraud on multiple landlords by falsely representing that she was a nurse and by providing forged pay stubs showing she had received income from employment as a nurse. She made this misrepresentation not only to convince the landlords that she had income to pay rent, but also to convince the landlords that because she was a nurse she would be a responsible tenant.
Numerous letters from charitable organizations indicate they assisted Adair in paying her rent. One apartment manager, for example, had letters on file from four churches and charitable organizations that gave Adair a total of $849. Adair also falsely claimed on her Facebook page (under the name Twyla Hicks) that she had cancer and got the eviction judge to feel sorry for her and to find agencies to help pay her rent.
Court documents describe Adair as a prolific writer of counterfeit and fraudulent checks. She used the names and identities of other people, along with fraudulent and false names, to open credit accounts that were never paid and to pay for goods and services with worthless checks. With no history of legitimate employment, Adair made her living through identity theft and defrauding others, including churches.
This case was prosecuted by Deputy U.S. Attorney Gene Porter. It was investigated by the Kansas City, Mo., Police Department.
KC Man Sentenced for Illegal Firearm Used in Shooting of 14-Year-Old VictimRead 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 for illegally possessing a firearm that was used in the shooting of a 14-year-old girl five days earlier.
Tyron Young, 28, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays on Monday, Aug. 14, 2017, to nine years and seven months in federal prison without parole. The court ordered the federal sentence to be served consecutively to any sentence Young receives in a pending state case in which he has been charged with shooting the 14-year-old victim.
On Nov. 21, 2016, Young pleaded guilty to being a felon in possession of a firearm. At yesterday’s sentencing hearing, the government introduced evidence that Young possessed the firearm in connection with the commission of another crime, assault with intent to murder. Young has been charged in the Circuit Court of Jackson County with two counts of armed criminal action, unlawful use of a weapon (discharging a weapon at a habitable structure) and assault related to the May 11, 2016, shooting.
Evidence introduced in the sentencing hearing indicates that Young climbed onto the back deck of the victim’s home and fired several gunshots through the victim’s bedroom window. The victim, who was in bed, was struck in the leg and suffered a fracture that required two surgeries (in which an intramedullary rod and three locking screws were implanted) and extensive rehabilitation. The bullet that struck the victim fragmented and consequently, some metal bullet fragments remain in the victim’s leg after surgery. According to testimony, the victim’s brother was actually the intended target for the retaliatory shooting.
According to court documents, Kansas City police officers attempted to stop Young, a documented 57th Street gang member with eight active warrants, on May 16, 2016. Young, driving a Dodge Dart, refused to stop after the officers activated their lights and sirens, and instead began driving at a high rate of speed through a residential neighborhood in the area of 57th Street and Wabash. A police pursuit was not initiated due to public safety concerns, however, an area canvass was immediately initiated for Young and the vehicle.
Officers saw Young walking away from the vehicle at 60th Street and Wabash. When Young saw the officers, he began to flee on foot, but was apprehended. A loaded Taurus 9mm semi-automatic handgun was found lying on the ground in the area where Young had been seen. Young later confessed that he had the firearm in the vehicle with him and threw it down before the police arrested him.
A Kansas City Police Crime Laboratory forensic specialist compared the Taurus handgun that Young possessed on May 16, 2016, to the five spent 9mm caliber cartridge cases and two spent bullets recovered by police from the shooting victim’s home on May 11, 2016. After analysis, the forensic specialist concluded that all five cartridge cases were fired from Young’s firearm. The forensic specialist also determined that one of the spent bullets had likewise been fired from the same Taurus. The analysis on the remaining spent bullet was inconclusive.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Young has a prior felony conviction for attempted robbery.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Three More Indicted for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that three more defendants have been indicted for their roles in a three-months-long conspiracy that included at least 27 armed robberies, culminating in the armed robbery of a Walgreens in Blue Springs, Mo., in which a suspect was fatally shot by law enforcement officers.
Kevin Thompson-Randell, also known as “Kilo Ali,” 22, and Demetrius Nelson, 24, both of Kansas City, Mo., and Frank Garner, Jr., also known as “Fonzi,” 23, of Grandview, Mo., were charged in a 36-count second superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Aug. 9, 2017. That indictment was unsealed and made public today; all of the defendants have been arrested.
The second superseding indictment replaces a superseding indictment that was returned on Aug. 10, 2016, and includes additional charges.
The second superseding indictment contains the original charges against Shannon R. Thomas, 27, of Shawnee, Kan., and Deonte J. Collins-Abbott, 22, and Parrise K. Black, also known as “Kilo,” 25, both of Grandview. Thomas, Collins-Abbott and Black have been in federal custody without bond since their arrests.
The federal indictment alleges that all six co-defendants participated in a conspiracy to commit a series of armed robberies between Jan. 2 and March 24, 2016. According to court documents, conspirators participated in at least 27 armed robberies over a period of less than three months; 17 of those robberies are charged in the indictment.
New Charges Added in the Second Superseding Indictment
In addition to three new co-defendants, the second superseding indictment also contains new charges related to six additional armed robberies.
Thompson-Randell and Thomas are charged together in one count of armed robbery of Moonlight Adult Boutique, 8801 E. Truman Rd., Kansas City, Mo., on Feb. 29, 2016. They are also charged together in one count of brandishing a firearm in furtherance of a crime of violence.
Nelson and Thomas are charged together in four counts of armed robbery. They allegedly robbed Valero Express, 1331 E. Bannister Rd., Kansas City, Mo., on March 9, 2016; Sonic, 4520 Blue Parkway, Kansas City, Mo., on March 9, 2016; World of Wine and Spirits, 1722 W. 39th St., Kansas City, Mo., on March 10, 2016; and Phillips 66, 1509 W. 12th St., Kansas City, Mo., on March 10, 2016. They are also charged together in four counts of brandishing a firearm in furtherance of those crimes.
Thomas is charged with one count of armed robbery of Conoco, 4656 Prospect Ave., Kansas City, Mo., on March 15, 2016, and one count of brandishing a firearm in relation to that crime of violence. According to court documents, a victim was shot during this robbery.
Garner and Thomas are charged together in one count of armed robbery of a Conoco station, 4516 E. 39th St., Kansas City, Mo., on March 15, 2016. They are also charged together in one count of brandishing a firearm in furtherance of a crime of violence. (Thomas was previously charged alone with the Conoco robbery.)
Fatal Shooting During Walgreen’s Robbery
Thomas and Collins-Abbott are charged together with the armed robbery of the Walgreens located at 9th and Duncan in Blue Springs on March 24, 2016. They are also charged together with possessing and brandishing a firearm in relation to that crime. Thomas is also charged with one count of being a felon in possession of a firearm. Thomas allegedly possessed a Springfield Armory semi-automatic pistol.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers were conducting surveillance that day on Thomas and Collins-Abbott as part of the investigation into a series of armed robberies at area businesses.
On March 24, 2016, according to the affidavit, Thomas, Collins-Abbot and Jermon Seals of Shawnee, Kan., confronted a Walgreens employee outside the business and forced the employee inside at gunpoint. Once inside, the affidavit says, one of the robbers placed a firearm to the back of the employee’s head and took money from the front register. The other two robbers went over the pharmacy counter and took prescription grade cough syrup at gunpoint from the pharmacist. They left the business but were confronted by law enforcement officers as they were walking back to the vehicle. They failed to comply with the officers’ commands, according to the affidavit, and turned towards the officers, pointing a gun in their direction. Officers returned fire and Seals was struck in the exchange. Collins-Abbott and Thomas were apprehended by officers after a short foot pursuit.
Previous Charges Continued in the Second Superseding Indictment
Thomas and Collins-Abbott also are charged together in one count of armed robbery of Phillips 66, 8111 E. 87th St., Raytown, Mo., on March 2, 2016. They are also charged together in one count of brandishing a firearm in furtherance of that crime of violdence.
Thomas and Black are charged together in one count of armed robbery of Shell, 3786 Broadway, Kansas City, Mo., on March 20, 2016, and one count of brandishing a firearm in furtherance of that crime of violence.
Collins-Abbot and Black are charged together in two counts of armed robbery and two counts of brandishing a firearm in relation to those crimes. They allegedly robbed QuikTrip, 16501 E. U.S. 40 Hwy., Independence, Mo., on Feb. 3, 2016; and Pour Boys, 2601 Chouteau, North Kansas City, Mo., on Feb. 3, 2016.
Thomas also is charged with one count of armed robbery of Midwest Title Loan, 330 W. 85th St., Kansas City, Mo., on Jan. 19, 2016, and one count of brandishing a firearm in relation to that crime of violence.
Collins-Abbott also is charged with five counts of armed robbery and five counts of possessing and brandishing a firearm in relation to those crimes. Collins-Abbott allegedly robbed Worlds Liquor and Tobacco, 1901 NE Russell Rd., Kansas City, Mo., on March 7, 2016; Conoco, 4516 E. 39th St., Kansas City, Mo., on March 8, 2016; and Dollar General, 5100 Blue Ridge Cutoff, Kansas City, Mo., on March 21, 2016.
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. Attorneys Adam Caine and David Raskin. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the North Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Ten Defendants Plead Guilty in $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that 10 defendants have pleaded guilty in federal court to charges related to a $1 million conspiracy to distribute at least 30 kilograms of methamphetamine.
Travis Lee Bethel, 46, of Urbana, Mo., pleaded guilty before U.S. Magistrate Judge Robert E. Larson today to his role in the drug-trafficking conspiracy and a related money-laundering conspiracy.
Kenneth Bryant Lake, 56, of Strafford, Mo.; Jake Ian Nixon, 20, and Scott Bryan Sands, 52, both of Springfield, Mo.; and Jerry Lee Brown, 43, of Lebanon, Mo.; also pleaded guilty this week to the drug-trafficking and money-laundering conspiracies. Nixon also pleaded guilty to possessing firearms in furtherance of a drug-trafficking crime.
Kara Rene Baze, 23, of Springfield; Breann Nicole Hall, 25, of Ozark, Mo.; Tara L. Harken, 45, of Marion, Ill.; and Cindy Ann Nevatt, 63, of Gulf Shores, Ala.; each pleaded guilty this week to crossing state lines in aid of racketeering enterprises.
Michelle Vanne Gray, 50, of Springfield, pleaded guilty on Aug. 2, 2017, to maintaining drug-involved premises.
Investigators with the Buchanan County Drug Strike Force, the Springfield, Mo., Police Department and the Drug Enforcement Administration identified Lake as the original head of the organization coordinating vehicle transport shipments of methamphetamine to Springfield for distribution, as well as shipments of cash drug proceeds out of the area. Lake and Sands also coordinated shipments of methamphetamine and drug proceeds by mail and parcel service to and from the Springfield area.
Lake, Bethel, Sands and Brown admitted their involvement in distributing more than five kilograms of methamphetamine and collecting drug proceeds for the methamphetamine that was delivered.
Bethel also provided co-conspirators with salvage title vehicles, which were traded for methamphetamine and/or paid for with drug proceeds. Bethel assisted in repairing the vehicles, again paid for with the proceeds of drug-trafficking.
Nixon admitted his involvement in the distribution of more than 1.5 kilograms of methamphetamine. On July 15, 2015, Nixon was arrested by Springfield police officers for possession of approximately three ounces of methamphetamine and a .32-caliber handgun. Nixon had been purchasing quarter-pound quantities of methamphetamine in Springfield every other day for $3,400.
Nixon was arrested four more times between Jan. 18 and June 9, 2016, for possessing methamphetamine. On three of those occasions, Nixon was also in possession of a firearm.
Brown distributed methamphetamine to numerous people and recruited one of his family members to assist with transporting methamphetamine into the Springfield area.
Conspirators sent shipments of methamphetamine via U.S. Postal Service parcels to Gray’s residence. Gray admitted that she accepted at least three packages at her residence with the agreement to store the packages there until co-conspirators retrieved the packages from her residence. Gray was aware that the packages contained methamphetamine.
Baze, Hall, Harken and Nevatt each admitted that she facilitated the drug-trafficking conspiracy by traveling across state lines. Each of them also admitted that she moved and stored property purchased with drug proceeds or used in the money-laundering and drug-tracking conspiracies, stored drug proceeds, and rented and paid for rooms, cars, or other facilities used in the conspiracies.
Under the terms of their plea agreements, Lake, Bethel, Nixon, Sands and Brown must forfeit to the government up to $1,060,070, which represents the proceeds of drug trafficking based on a conservative average street price of $1,000 per ounce of 90 percent pure methamphetamine and the total conspiracy distribution of at least 30 kilograms of methamphetamine.
Under federal statutes, Bethel is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. Lake, Sands and Brown are each 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. Nixon 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. Gray is subject to a sentence of up to 20 years in federal prison without parole. Baze, Hall, Harken and Nevatt are each 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 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 Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Lake Area Narcotics Enforcement Group, the U.S. Postal Inspection Service, the Drug Enforcement Administration and IRS-Criminal Investigation.
Springfield Woman Pleads Guilty to $718,000 Tax FraudRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to her role in a $718,000 tax fraud conspiracy.
Nancy Lorine Walker, 55, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of conspiracy, one count of presenting a false claim, one count of theft of government property and one count of aggravated identity theft.
By pleading guilty today, Walker admitted that she participated in a conspiracy from January 2010 to April 23, 2013, to submit false federal income tax returns and make false claims for federal income tax refunds for the 2009-2012 tax years.
Walker and other conspirators used the means of identification of individuals, including their names and social security numbers, and Turbo Tax to prepare and electronically file federal income tax returns. Those returns were false and fraudulent in that they included fictitious IRS Form W-2 information, listing employers who did not employ the individual listed on the return and reporting wages not earned and employment taxes not withheld from the individual.
Conspirators fraudulently claimed $718,927 in federal income tax refunds. Under the terms of today’s plea agreement, Walker must pay $317,498 in restitution, the amount of refund actually received.
Under federal statutes, Walker is subject to a sentence of up to 20 years in federal prison without parole, plus a mandatory consecutive sentence of two years in federal prison for aggravated identity theft. 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 Casey Clark. It was investigated by IRS-Criminal Investigation.
Former Lebanon Airport Operator Indicted for $707,000 Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that the former owner of a fixed base operation at the Lebanon, Mo., airport has been indicted by a federal grand jury for a $707,000 investment fraud scheme.
Paul David Ward, 61, of Camdenton, was charged with wire fraud in an indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, Aug. 9, 2017.
Ward was the owner of Lebanon Aviation Service, Inc., which provided services to the users of the Lebanon airport, including the sale of aviation fuel, through a contract with the city of Lebanon. Ward purchased aviation fuel for his business from Avfuel Corporation, located in Ann Arbor, Michigan. In October 2014, Ward surrendered his contract with the city of Lebanon to sell aviation fuel at the airport. At that time, Ward was suffering monthly losses of $6,000 or greater.
The federal indictment alleges that, from Jan. 1, 2011, to Aug. 22, 2016, Ward engaged in a scheme to defraud friends and associates who invested in his company. Ward falsely and fraudulently claimed he would use the solicited investments in Lebanon Aviation Service, the indictment says, but he actually used the solicited investments for personal expenses and to make Ponzi-style payments to previous investors. In total, according to the indictment, Ward defrauded approximately 25 investors in Camden, Laclede and Cole Counties who suffered actual losses of approximately $264,720.
Ward solicited his friends and associates to invest in Lebanon Aviation Services. At various times, the indictment says, Ward falsely claimed that he needed additional capital to purchase aviation fuel, needed capital to purchase pleasure boats for resale, and that he needed capital for undisclosed purposes. Ward continued to solicit investments after Lebanon Aviation Services was dissolved by the Missouri Secretary of State in January 2015.
At the time of the investment, Ward provided the investor with a post-dated bank check in the amount of the principal plus interest. In most cases, when the investment became due and payable, the investor deposited the post-dated check, but the check was returned for insufficient funds. When an investor complained to Ward about the returned check, the indictment says, Ward falsely stated a reason for the returned check and provided a series of false excuses for the failure to pay to lull the investor and gain more time to repay the investor. Ward generally attempted to repay investors who threatened to tell his wife about his failure to repay the investment. When Ward’s attempts to stall an investor failed, he solicited additional investments for the purpose of paying off a previous investor.
The indictment also contains a forfeiture allegation, which would require Ward to forfeit to the government any property derived from the proceeds of the alleged offense, including a $264,720 money judgment.
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 Ashley S. Turner. It was investigated by the FBI and the Missouri State Highway Patrol.
Adrian Man Sentenced for Meth, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Adrian, Mo., man has been sentenced in federal court for drug trafficking and illegally possessing a firearm.
Jesus A. Arredondo, 24, of Adrian, was sentenced by U.S. District Judge Stephen R. Bough on Wednesday, Aug. 9, 2017, to 11 years in federal prison without parole.
On March 22, 2017, Arredondo pleaded guilty to participating in a conspiracy to distribute methamphetamine, three counts of possessing methamphetamine with the intent to distribute, and one count of being a felon in possession of a firearm.
According to the plea agreement, Jackson County sheriff’s deputies attempted to stop Arredondo (who had an unidentified female passenger in his vehicle) on Oct. 14, 2015, near the intersection of Beach Road and Colbern Road in Lee’s Summit, Mo. Arredondo, driving a stolen vehicle, led deputies on a chase that reached speeds up to 100 miles per hour. During the pursuit, Arredondo failed to yield for multiple red lights and stop signs and traveled the wrong direction on multiple roadways. Arredondo traveled off the roadway and crashed near Grain Valley, Mo., and fled on foot. Deputies took Arredondo into custody in a nearby field.
Inside Arredondo’s vehicle, deputies found 81 grams of methamphetamine, marijuana, a number of Hydrocodone and other pills and a glass pipe.
Arredondo told law enforcement officers that he and the woman in his vehicle had been driving to multiple locations to sell methamphetamine. She had taken multiple Xanax pills and fell asleep in the passenger seat while he was driving. Arredondo also admitted that he had thrown a handgun with laser sights from the vehicle as he was fleeing from law enforcement.
Arredondo told officers he facilitated many narcotics transactions, including large methamphetamine sales using his connections from Mexico. Two days earlier, he said, Arredondo had orchestrated a deal for three kilograms of methamphetamine for $35,000.
A week later, the owner of a Grain Valley business near the location where Arredondo’s vehicle crashed notified law enforcement that he found a black nylon backpack on his property. Inside the backpack was a baggie that contained 315.85 grams of methamphetamine (which Arredondo later identified as part of the three-kilogram shipment smuggled from Mexico into Texas), a digital scale and a cell phone.
On Oct. 25, 2015, Harrisonville, Mo., police officers responded to a call regarding a careless and imprudent driver. Arredondo, the driver of the vehicle, had fled on foot with a red backpack prior to the officers’ arrival. When officers arrived, they contacted Arredondo, who admitted he was driving fast. Officers searched the vehicle and found 7.6 grams of methamphetamine, drug paraphernalia, 9mm ammunition and $2,526.
On Nov. 2, 2015, Harrisonville police officers responded to a call reporting suspicious behavior at Burger King. They were directed to a vehicle that was stopped in the drive-through lane in which Arredondo was a passenger and an unidentified female was the driver. Officers searched the vehicle and found 23.7 grams of methamphetamine, 81 syringes, a glass pipe and a loaded Intratec TEC-9 firearm. They also found a black safe that was later searched and found to contain 71.7 grams of methamphetamine and a single 9mm bullet.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arredondo has a prior felony conviction for assault for beating his girlfriend.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Jackson County, Mo., Sheriff’s Department, the Grain Valley, Mo., Police Department, the Harrisonville, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson County Drug Task Force.
Former Leawood Business Owner Indicted for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former Leawood, Kan., business owner has been indicted by a federal grand jury for tax evasion.
Barrett Prelogar, 46, of Leawood, was charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Aug. 8, 2017. That indictment was unsealed and made public upon Prelogar’s arrest and initial court appearance today.
Prelogar was a partner in now-defunct Winntech Digital Systems, Inc. The federal indictment charges Prelogar with one count of tax evasion and one count of corruptly endeavoring to impede the due administration of the internal revenue laws.
According to the indictment, Prelogar engaged in several strategies from May 2011 to March 28, 2016, to avoid paying taxes and penalties he owed to the government. Prelogar allegedly used corporate funds to pay his personal expenses, structured cash withdrawals from Winntech’s bank account to avoid federal reporting requirements, and cashed his payroll checks from his wife’s company, Bareskull Innovation, LLC, rather than placing the money into a personal bank account. Prelogar, the indictment says, willfully attempted to evade paying the Trust Fund Recovery Penalty, which had been assessed against him personally for the unpaid trust fund taxes of Winntech, and the payment of income tax due and owing by him for the calendar year 2008.
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 Paul S. Becker and Trial Attorney David Zisserson of the U.S. Department of Justice, Tax Division. It was investigated by IRS-Criminal Investigation.
Husband of Former St. Joseph Business Owner Pleads Guilty in Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the husband of a former St. Joseph, Mo., business owner pleaded guilty in federal court today on a charge related to a nearly $1.5 million tax fraud scheme.
Thad Weaver, 46, of St. Joseph, pleaded guilty before U.S. District Judge Beth Phillips to making false statements on a tax return.
Weaver’s wife, Dinorah Lynn Stoll-Weaver, 49, of St. Joseph, pleaded guilty on July 28, 2017, to failing to pay over employee payroll taxes to the IRS for her home health provider business located in St. Joseph.
Co-defendants Dawn Langlais (Stoll-Weaver’s sister), 60, and Langlais’s daughter, Jennifer Sturgis, 38, both of St. Joseph, have also pleaded guilty. Langlais pleaded guilty to failing to pay over employee payroll taxes to the IRS. Sturgis pleaded guilty to making false statements on a tax return.
All four co-defendants admitted that they failed to report their income on their personal federal income tax returns.
From 2001 through early 2010, Stoll-Weaver owned and, with the assistance of Langlais, operated Homeward Bound Health Services, Inc., a home health provider located in St. Joseph. In 2010, Homeward Bound’s name was changed to Silver Linings, Inc., and nominee owners were put in place who signed the checks but made no business decisions. Stoll-Weaver and Langlais continued to operate Silver Linings until it closed in 2013.
Stoll-Weaver employed her husband, Weaver, and Langlais employed her daughter, Sturgis, at Homeward Bound and Silver Linings. They also employed other relatives at the business.
Homeward Bound and Silver Linings withheld and collected federal income taxes, Social Security taxes, and Medicare taxes from employees and then kept those withheld taxes instead of paying them over to the IRS. The total criminal tax loss attributed to Homeward Bound and Silver Linings for failure to pay employment taxes due and owing from 2001 to 2012 is $1,459,727.
Homeward Bound and Silver Linings also withheld from employee paychecks and kept child support payments, employee IRA contributions, and medical and dental insurance payments. The theft of these payments had negative collateral consequences for their employees.
Weaver, Stoll-Weaver, Langlais and Sturgis admitted they received income from Homeward Bound and Silver Linings, which they failed to report on their individual federal income tax forms, and as a result, underpaid their federal income taxes.
Weaver and Stoll-Weaver were married and filed individual income tax returns for 2010 – 2012; Stoll-Weaver filed a separate return in 2009. Their combined unreported income was at least $257,827. Weaver’s total personal tax loss was at least $27,488. Stoll-Weaver’s personal tax loss was $34,264.
Langlais willfully failed to make an income tax return or pay personal income taxes from 2010 to 2012, for a total personal tax loss of $56,860. Sturgis willfully failed to make an income tax return or pay personal income taxes from 2007 to 2012, for a total personal tax loss of $148,347, including relevant conduct.
Additionally, from 2009 to 2012, Weaver, Stoll-Weaver and Sturgis each claimed personal federal income tax refunds, knowing that Homeward Bound and Silver Linings had not paid any income taxes to the IRS.
Under federal statutes, Weaver and Sturgis are each subject to a sentence of up to three years in federal prison without parole. Stoll-Weaver and Langlais are each 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. 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 Kathleen D. Mahoney. It was investigated by IRS – Criminal Investigation.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Deangelo Tarryl Grant, 32, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to eight years and three months in federal prison without parole.
On April 3, 2017, Grant pleaded guilty to being a felon in possession of a firearm.
According to court documents, Columbia police officers observed Grant driving in Columbia on Oct. 6, 2016, and were aware that Grant’s driver’s license was expired. Officers tried to stop Grant, but he fled in his car. He stopped his car after a short pursuit, and he and his passenger fled on foot. Both individuals were quickly taken into custody, and officers retraced the path taken by Grant’s car. Officers found a loaded Glock .45-caliber pistol along the roadway. Video surveillance from a Columbia Public Housing camera depicted Grant’s car, and showed his arm coming out of the driver’s side window in the area where the Glock was recovered.
During a search of Grant’s car, according to court documents, a small amount of marijuana was found inside a purse. Grant admitted possessing the marijuana, but denied knowledge of the gun until officers confronted him with the video. He then admitted that he had purchased the gun “on the street” for protection.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Grant has a prior felony conviction for possession of cocaine with the intent to distribute and distribution/delivery/manufacture of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Mail Carrier Pleads Guilty to Stealing Mail from Independence ResidentsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a mail carrier pleaded guilty in federal court today to stealing gift cards and checks from postal customers in Independence, Mo.
Audrey S. Odell, 34, of Blue Springs, Mo., waived her right to a grand jury and pleaded guilty before U.S. District judge Brian C. Wimes to a federal information that charges her with the theft of mail by a postal employee.
Odell was employed as a mail carrier on routes in Independence. By pleading guilty today, Odell admitted that she stole approximately 150 gift cards and 150 checks from the mail, with an estimated loss of $2,500 from approximately 75 postal customers.
In December 2015, the U.S. Postal Service received complaints regarding mail and possible mail theft occurring on Odell’s routes. In January 2017, postal inspectors placed in the mail test pieces with gift cards addressed to fictitious addresses. Odell was assigned to deliver those pieces of mail. The mail should have been returned to the post-station as not deliverable. On Feb. 8, 2017, postal inspectors prepared three additional test pieces for the route assigned to Odell on that day. Later that day, agents from the U.S. Postal Service-Office of the Inspector General approached Odell in the parking lot and searched her vehicle. The agents found several pieces of mail, including the test mailings.
Under federal statutes, Odell 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 Paul S. Becker. It was investigated by the U.S. Postal Service, Office of Inspector General.
KC Woman Pleads Guilty to Obstruction of Justice After Forging Court Order for ReleaseRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman who forged a court order to get another inmate released from prison, pleaded guilty in federal court today to obstruction of justice.
Margie P. Shephard, 51, of Kansas City, Mo., pleaded guilty before U.S District Judge Roseann Ketchmark to obstruction of justice.
Shephard was incarcerated as an inmate at Federal Prison Camp-Bryan in Bryan, Texas, after being sentenced to 10 years for conspiracy to commit bank fraud and identity theft, aggravated identity theft and obstruction of justice.
By pleading guilty today, Shephard admitted that, while incarcerated, she fabricated a document purporting to be an Amended Judgment in a Criminal Case for fellow inmate Leann Raejeana Turner, 48, of Blue Springs, Mo. Turner was also incarcerated at Federal Prison Camp-Bryan after being sentenced to three years in prison for her role in an $11 million mortgage fraud scheme. The fake court order, with a reduced sentence of 120 days of imprisonment for Turner (which would have resulted in her immediate release), included the forged signature of U.S. District Judge Greg Kays.
Shephard mailed the fake court order to her sister, who then faxed it to prison officials from a Sunfresh grocery store in Kansas City, Mo., on Nov. 9, 2014. Upon receiving the document, prison officials determined it was a forgery.
Under federal statutes, Shephard 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 Rudolph R. Rhodes, IV. It was investigated by the FBI.
Former CFO Pleads Guilty to Embezzling $6.5 Million from KC CompanyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the former chief financial officer of a Kansas City, Mo., company pleaded guilty in federal court today to embezzling more than $6.5 million from his employer.
Douglas Ferrell, 34, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges him with wire fraud and money laundering.
Ferrell began working for Scarbrough International at its headquarters in Kansas City, Mo., in 2005 as an account representative and became the company’s chief financial officer in 2012. Scarbrough International is a privately owned, U.S. Customs Broker and international freight forwarder.
By pleading guilty today, Ferrell admitted that he embezzled approximately $6,523,742 from the company for his own use and enjoyment. From Sept. 1, 2006, to June 10, 2014, Ferrell engaged in a scheme to embezzle company funds by making unauthorized personal charges to the company’s credit card and PayPal accounts, and then using company funds to pay those charges.
Ferrell also made a number of financial transactions of funds that he knew were the proceeds of fraud, including a $650,000 wire transfer (that contained at least $475,625 in fraud proceeds) to Cayman National Bank in the Cayman Islands to purchase a beach house. Ferrell wired a total of more than $2,250,000 to purchase that property. Ferrell also used embezzled funds to ship furnishings from the United States for the property and for additional construction and improvements to the property, including over $77,000 in payments to a Cayman Islands tile company. After the improvements, paid for with additional embezzled funds, the property was valued at over $2.6 million.
The final amount of restitution will be determined at Ferrell’s sentencing hearing, but is estimated to be $1,940,462 due to Ferrell’s partial repayment of restitution. The company has recouped a significant portion of its loss.
Under federal statutes, Ferrell 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 Assistant U.S. Attorney Brian P. Casey. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Springfield Woman Sentenced for Stolen Mail, FraudRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman responsible for mail thefts from at least 40 victims in three counties, was sentenced in federal court today.
Lisa Beatrice Gee, 29, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to two years and six months in federal prison without parole. The court also ordered Gee to pay $10,994 in restitution to her victims.
On March 15, 2017, Gee pleaded guilty to passing a forged check, credit card fraud and stealing mail. Gee admitted that she was in possession of stolen mail between Jan. 8 and March 17, 2016. When Gee was arrested on March 17, 2016, she was in possession of mail stolen by herself, or others at her direction, from at least 40 different individuals in Greene, Christian and Polk Counties. Gee admitted that she took checks, credit cards, Social Security cards and personal identification cards belonging to those mail theft victims. Gee used the contents of the stolen mail to engage in fraudulent criminal acts.
Gee admitted that she fraudulently conducted financial transactions with credit cards, debit cards, identification cards and personal identification numbers. Gee also passed a forged check on Jan. 23, 2016. Gee altered the check, which had been mailed from one person to another, to make it payable to a third person and deposited the check in that person’s bank account. Shortly thereafter, Gee withdrew the same amount of money from the account in the form of ATM cash withdrawals.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service, the Springfield, Mo., Police Department, the Nixa, Mo., Police Department and the Ozark, Mo., Police Department.
Springfield Man Sentenced to 15 Years for Producing 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 was sentenced in federal court today for using a minor to produce child pornography.
Tyler Coons, 26, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Coons to 15 years of supervised release following his incarceration.
On Jan. 30, 2017, Coons pleaded guilty to one count of using a minor to produce child pornography and one count of receiving and distributing child pornography.
The investigation began when the father of an 11-year-old girl filed a report with the Greene County Sheriff’s Department on June 3, 2014, after his daughter received inappropriate Facebook messages from Coons. When he signed into his daughter’s Facebook account, he saw messages from Coons and set up a meeting with him, pretending to be his daughter. The father met Coons on the playground of a local elementary school and told him to have no further contact with his daughter.
On June 20, 2014, a search warrant was obtained for Coons’s Facebook account and Facebook provided investigators with more than 8,000 pages of private messages exchanged between Coons and others. Many of the messages were from young girls between the ages of 11 and 17. Coons asked several of the girls to send him pictures of themselves without clothes on.
During numerous Facebook conversations with girls claiming to be under the age of 18, Coons refers to exchanging naked pictures via social media, including Snapchat, Instagram and Kik. Frequently, during the conversations, Coons refers to the females as “jailbait” and indicates that he is aware he is engaging in illegal activity.
On July 10, 2014, detectives from the Greene County Sheriff’s Department executed a search warrant at Coons’s residence. Coons was inside the residence with a 17-year-old female, who was identified as one of the minors who had sent him several pornographic images of herself. Coons admitted that he and the 17-year-old victim were sexually active, and that they could have been sexually active while she was still 16 years old. Coons also admitted that he sent a naked picture of himself to her.
In an interview with investigators, the 17-year-old victim said that she and another minor, whom she believed to be 15 years old, had engaged in sexual activity with Coons at his residence on the night before the search warrant was executed.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Greene County, Mo., Sheriff’s 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."
Topeka Man Pleads Guilty to $445,000 Tax Refund SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Topeka, Kan., man pleaded guilty in federal court today to a conspiracy that attempted to obtain nearly $445,000 in fraudulent federal income tax refunds.
Orville Frame, Jr., 24, of Topeka, pleaded guilty before U.S. District Judge Gary A. Fenner to participating in a conspiracy to defraud the government.
By pleading guilty today, Frame admitted that he participated in a conspiracy, from March 2013 to April 2014, to obtain federal income tax refunds by filing false and fraudulent claims to the IRS. The tax refund scheme involved the creation of false W-2 forms, which reported fictitious employer information, fictitious income and fictitious income tax withholdings. Frame and co-defendant Byron Meeks, 37, of Topeka, used the false W-2 forms to fraudulently file for federal and state income tax returns, including Frame’s own federal and state income tax returns for tax years 2012 and 2013 (claiming refunds of a $371,947 and $34,440, respectively).
The tax refund scheme resulted in an attempted criminal federal tax loss of approximately $444,930. The actual loss from the tax refund scheme was $10,945, which was the only federal refund paid out by the IRS. The state of Kansas also paid out a $3,389 state tax refund.
Meeks pleaded guilty to his role in the conspiracy and was sentenced on April 12, 2017, to five years in federal prison without parole. According to court documents, Meeks threatened his girlfriend and her daughter (in whose names fraudulent returns were filed) and instructed them not to cooperate with the investigation. Meeks also instructed Frame to destroy the computer that Meeks used to create and file the fraudulent tax returns.
Meeks had earlier pleaded guilty in a separate case on Dec. 14, 2010, to filing false tax returns and was sentenced to 24 months’ imprisonment. He was released from prison on April 17, 2012, and less than a year later, resumed the exact same conduct. He participated in filing two fraudulent tax returns in March 2013.
Under federal statutes, Frame 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 Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Springfield Man, Willard Woman Plead Guilty to Meth, Money Laundering ConspiraciesRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man and a Willard, Mo., woman pleaded guilty in federal court today to their roles in a conspiracy to distribute methamphetamine in Greene County, Mo., and in a money-laundering conspiracy.
Patrick R. Brigaudin, 55, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charges contained in a Sept. 28, 2016, federal indictment.
Gayla Rochelle Phillips, 42, of Willard, pleaded guilty before U.S. Magistrate Judge David P. Rush to the same charges.
Brigaudin and Phillips admitted they participated in the methamphetamine conspiracy from October 2013 to Feb. 29, 2016. In total, the amount of pure methamphetamine involved in the conspiracy weighed in excess of 4.5 kilograms.
In March 2015, a shipment of approximately 15 pounds of pure methamphetamine was interdicted by law enforcement officers. Three persons were arrested following a controlled delivery of the methamphetamine to a Springfield hotel. Brigaudin admitted that he attempted to possess some or all of the methamphetamine, which he intended to distribute to others. Brigaudin also admitted to distributing methamphetamine on several occasions in 2015 and 2016.
On Feb. 29, 2016, two individuals transported approximately 12 pounds of methamphetamine to Brigaudin’s residence. While they were removing the methamphetamine from a vehicle, they and Brigaudin were arrested.
Phillips admitted that she obtained methamphetamine from Brigaudin on Feb. 19, 2016, which she then distributed to another person.
Brigaudin and Phillips also admitted they purchased a 2006 Lincoln Mark LT pickup truck by paying an automobile dealer $7,200 in cash and an $8,500 check drawn on Phillips’s bank account. They conducted this financial transaction with drug-trafficking proceeds in order to conceal the nature and source of the funds and to avoid a transaction reporting requirement.
Under federal statutes, Brigaudin is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in prison without parole. Phillips 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. 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 Timothy A. Garrison. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, COMET (the Combined Ozarks Multijurisdictional Enforcement Team) and the South Central Drug Task Force.
Springfield Man Sentenced to 15 Years for Illegal FirearmsRead 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 illegally possessing firearms.
Christopher M. Behn, 40, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole. Behn was sentenced as an armed career criminal due to his prior felony convictions.
On May 4, 2017, Behn pleaded guilty to being a felon in possession of firearms.
Springfield police officers executed a search warrant at Behn’s residence on Nov. 4, 2015. Officers found a Springfield Armory .45-caliber semi-automatic pistol in a portable trailer in the driveway and a DSA .223-caliber semi-automatic rifle in a metal outbuilding on the south side of the trailer.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Behn has three prior felony convictions for possession with intent to distribute a controlled substance, two prior felony convictions for possession of a controlled substance, and prior felony convictions for conspiracy to distribute a controlled substance, car theft, threatening with a deadly weapon, unlawful possession of a weapon by a previous offender, possession of a methamphetamine precursor drug with the intent to manufacture methamphetamine, and resisting arrest.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former St. Joseph Business Owner Pleads Guilty in $1.5 Million Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former St. Joseph, Mo., business owner pleaded guilty in federal court today to her role in a nearly $1.5 million tax fraud scheme.
Dinorah Lynn Stoll-Weaver, 49, of St. Joseph, pleaded guilty before U.S. District Judge Beth Phillips to failing to pay over employee payroll taxes to the IRS.
Co-defendants Dawn Langlais (Stoll-Weaver’s sister), 59, and Langlais’s daughter, Jennifer Sturgis, 38, both of St. Joseph, have also pleaded guilty. Langlais pleaded guilty to failing to pay over employee payroll taxes to the IRS. Sturgis pleaded guilty to making false statements on a tax return. All three defendants also admitted that they failed to report their income on their personal federal income tax returns.
From 2001 through early 2010, Stoll-Weaver owned and, with the assistance of Langlais, operated Homeward Bound Health Services, Inc., a home health provider located in St. Joseph. In 2010, Homeward Bound’s name was changed to Silver Linings, Inc., and nominee owners were put in place who signed the checks but made no business decisions. Stoll-Weaver and Langlais continued to operate Silver Linings until it closed in 2013.
Langlais employed her daughter, Sturgis, and other relatives at Homeward Bound and Silver Linings.
Homeward Bound and Silver Linings withheld and collected federal income taxes, Social Security taxes, and Medicare taxes from employees and then kept those withheld taxes instead of paying them over to the IRS. The total criminal tax loss attributed to Homeward Bound and Silver Linings for failure to pay employment taxes due and owing from 2001 to 2012 is $1,459,727.
Homeward Bound and Silver Linings also withheld from employee paychecks and kept child support payments, employee IRA contributions, and medical and dental insurance payments. The theft of these payments had negative collateral consequences for their employees.
Stoll-Weaver, Langlais and Sturgis admitted they received income from Homeward Bound and Silver Linings, which they failed to report on their individual federal income tax forms, and as a result, underpaid their federal income taxes.
Stoll-Weaver willfully failed to make an income tax return or pay personal income taxes from 2009 to 2012, for a total personal tax loss of $34,264.
Langlais willfully failed to make an income tax return or pay personal income taxes from 2010 to 2012, for a total personal tax loss of $56,860.
Sturgis willfully failed to make an income tax return or pay personal income taxes from 2007 to 2012, for a total personal tax loss of $148,347, including relevant conduct.
Additionally, from 2009 to 2012, Stoll-Weaver and Sturgis each claimed personal federal income tax refunds, knowing that Homeward Bound and Silver Linings had not paid any income taxes to the IRS.
Under federal statutes, Stoll-Weaver and Langlais are each subject to a sentence of up to five years in federal prison without parole. Sturgis is subject to a sentence of up to three 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 Kathleen D. Mahoney. It was investigated by IRS – Criminal Investigation.
Nevada Man Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Ben Culbertson, 56, of Nevada, was sentenced by U.S. District Judge Beth Phillips to 262 months in federal prison without parole. Culbertson has been detained in federal custody since his arrest in October 2016.
On March 22, 2017, Culbertson pleaded guilty to receiving and distributing child pornography over the Internet.
According to court documents Culbertson, came to the attention of law enforcement after distributing images of child pornography (including some victims likely under the age of 8 years old) over the Internet. Culbertson, who was previously convicted of two counts of aggravated indecent solicitation of a child, admitted to investigators that he received and distributed images of child pornography on multiple occasions.
This case was 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."
El Dorado Springs Woman Sentenced for Embezzling $380,000 from EmployerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an El Dorado Springs, Mo., woman was sentenced in federal court today for a mail fraud scheme by which she stole more than $380,000 from her employer and to filing a false tax return.
Regina Allison, 47, of El Dorado Springs, was sentenced by U.S. District Judge Beth Phillips to 30 months in federal prison without parole. The court also ordered Allison to pay $460,404 in restitution, including $380,134 to Allison Tire Company, Inc., and the remainder to the IRS and the Missouri Department of Revenue.
On Jan. 20, 2017, Allison pleaded guilty to one count of mail fraud and one count of filing a false tax return.
Allison was hired by Allison Tire Company and Allison Oil and Auto Supply in 2003. As a part of her duties at the company, which is owned in part by her ex-husband, Allison prepared company checks for payment of invoices. Allison was fired from her position in November 2015 after her supervisors discovered that she had forged numerous checks from the accounts of Allison Tire and Allison Oil to pay fictitious businesses she had created for her personal benefit.
Allison opened two bank accounts, one at a bank in Bolivar, Mo., and another at a bank in Nevada, Mo., under the names of two separate businesses. Neither of the business entities actually created any products or provided any services. Allison admitted that she used her position at Allison Tire and Allison Oil to write numerous company checks to these fictitious businesses, and forged the signatures of authorized signors.
Over the span of nearly four years, from November 2011 to November 2015, Allison embezzled a total of at least $380,134.
Allison also admitted that she failed to report this embezzled income on her federal income tax returns. The total tax loss to the United States was $58,813, without penalty or interest. The total tax loss to the state of Missouri was $16,315, without penalty or interest.
This case was prosecuted by Assistant U.S. Attorneys Casey Clark and Amy Blackburn. It was investigated by IRS-Criminal Investigation and the Missouri State Highway Patrol.
California Man, Woman Indicted for Transporting Multi-kilos of Meth, Fentanyl Through KCRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man and woman were indicted by a federal grand jury today for their roles in a conspiracy to distribute multi-kilos of methamphetamine and fentanyl (a synthetic form of heroin), which was confiscated during an interdiction at a local bus terminal.
Edgar Israel Reyes-Toscano, 44, and Vanessa Sanchez, 44, both of Bakersfield, Calif., were charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against both defendants on July 6, 2017.
The indictment alleges that Reyes-Toscano and Sanchez participated in a conspiracy to distribute methamphetamine and fentanyl. In addition to the conspiracy, Reyes-Toscano and Sanchez are charged together in one count of possessing methamphetamine with the intent to distribute and one count of possessing fentanyl with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, Reyes-Toscano and Sanchez were arrested on July 5, 2017, at a local bus terminal. They had traveled together, the affidavit says, on a bus that originated in Los Angeles, Calif. Reyes-Toscano’s bus ticket bore a final destination of St. Louis, Mo. A Kansas City, Mo., police detective searched his duffel bag and noticed a white cardboard box secured with clear package tape. Upon opening the lid of the box, the detective observed a large bundle wrapped in clear cellophane wrap. The detective also found a gift-wrapped package in the duffel bag that contained three bundles wrapped in clear cellophane wrap. According to the affidavit, those packages were later determined to contain a total of 2,380 grams of methamphetamine and 3,540 grams of fentanyl
Another Kansas City, Mo., police detective noticed Sanchez, carrying a bag on her shoulder, walk past while intensely staring at what was transpiring between Reyes-Toscano and the detective. The detective had seen Sanchez exit the bus with Reyes-Toscano, and noticed that the bag she carried over her shoulder appeared to have a heavy, rectangular-shaped box in it.
Sanchez entered the women’s restroom and when she came back out, her bag no longer appeared to have a heavy rectangular box within. Sanchez immediately exited the bus terminal, walked out to the loading platform and sat down on a bench. While the detective questioned Sanchez, a third detective searched the women’s restroom and found a rectangular gift-wrapped package in the trashcan. According to the affidavit, the package, wrapped in the same gift wrap as the package carried by Reyes-Toscano, contained three bundles wrapped in clear cellophane wrap for a total of 2,410 grams of methamphetamine.
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 Alison D. Dunning. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Two University of Missouri Physicians Plead Guilty to Health Care FraudRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two physicians at the University of Missouri School of Medicine in Columbia, Mo., have pleaded guilty in federal court, in separate cases, to engaging in a health care fraud scheme that totaled more than $190,000.
Kenneth Loem Rall, 82, and Michael Edward Richards, 65, both of Columbia, Mo., each waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, July 18, 2017, to a federal information that charges him with one count of health care fraud.
Rall, who was employed at the university from July 1, 1998, until June 1, 2012, was chairman of the department of radiology at the School of Medicine until his resignation from that position on Dec. 20, 2011. Richards, who was head of mammography, was employed at the university from July 10, 2003, to June 1, 2012. Rall and Richards were both attending physicians in the university hospital, and teaching physicians and members of the faculty of the School of Medicine.
By pleading guilty, Rall and Richards each admitted that he signed interpretations of exams performed by residents at the hospital without actually viewing the images. Rall admitted that he caused more than $120,000 in fraudulent claims to be filed with federal health benefit programs from March 2010 through December 2011. Richards admitted that he caused more than $70,000 in fraudulent claims to be filed with federal health benefit programs from March 2010 through December 2011.
Federal health benefit programs (such as Medicare, Medicaid and Tricare) pay for the interpretation of diagnostic radiology and other diagnostic tests only if the interpretation is performed or reviewed by a teaching physician. If a resident prepares and signs the interpretation, the teaching physician must indicate that he or she personally viewed the relevant images and agrees with the resident’s interpretation, or edits the findings.
Rall and Richards admitted they falsely certified that they had viewed hundreds of files and records, when in fact they did not view the images. In each instance, the federal health benefit plan caused money to be paid, relying on their certification that they had done the work required by the pertinent regulations.
Under federal statutes, Rall and Richards are each 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.
These cases are being prosecuted by Assistant U.S. Attorneys Lawrence E. Miller and Cindi S. Woolery. They were investigated by the U.S. Department of Health and Human Services – Office of the Inspector General, the Defense Criminal Investigative Service and the FBI.
More Charges Against Former Corrections Officers, Others Indicted for Corruption at Detention CenterRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that additional charges have been filed against two former corrections officers at the Jackson County Detention Center and three others indicted by a federal grand jury today related to conspiracies to smuggle contraband cell phones and other items to inmates.
Andre Lamonte Dickerson, 26, Carlos Laron Hughley, 32, Janikkia Lashay Carter, 36, and Marion Lorenzo Byers, also known as “Cuddy,” 35, all of Kansas City, Mo., and Jalee Caprice Fuller, 29, of Independence, Mo., were charged in two separate indictments returned by a federal grand jury in Kansas City, Mo. Today’s indictments replace a federal criminal complaint that was filed on June 21, 2017, and include additional charges and an additional defendant (Byers).
Dickerson and Fuller were corrections officers at the Jackson County Detention Center at the time of the alleged offenses. Hughley is an inmate at the detention center awaiting trial on charges of domestic assault, armed criminal action, resisting arrest and multiple counts of distributing controlled substances. Hughley is purportedly the father of Fuller’s recently born child. Carter and Byers are acquaintances of Fuller and Hughley.
Dickerson is charged in a four-count indictment; Hughley, Carter, Byers and Fuller are charged together in a separate 10-count indictment.
USA v. Dickerson
Today’s indictment alleges that Dickerson participated in a bribery and contraband smuggling conspiracy from May 2 to June 26, 2017, in violation of the Travel Act. Dickerson allegedly took money bribes to smuggle contraband to inmates at the Jackson County Detention Center. Dickerson allegedly made telephone calls and sent text messages to promote the conspiracy, and actually smuggled cell phones and other contraband to inmates at the detention center.
The indictment also alleges that Dickerson told an inmate in the detention center that he would ensure the inmate was the only inmate on the fifth floor to receive contraband cigarettes, narcotics, drugs and telephones if the inmate would pay Dickerson a monthly fee of $2,500.
The indictment cites an incident in which Dickerson allegedly took a $500 bribe to smuggle a cell phone, charger and cigarettes to an inmate at the detention center.
In addition to the conspiracy, Dickerson is charged with three counts of using a telephone in furtherance of the unlawful activity of acceding to corruption.
USA v. Fuller, et al
Today’s indictment alleges that Fuller, Carter, Hughley and Byers participated in a separate bribery and contraband smuggling conspiracy from May 2 to June 26, 2017, in violation of the Travel Act.
Fuller allegedly took money bribes to smuggle contraband to inmates at the Jackson County Detention Center. Fuller allegedly made telephone calls and sent text messages to promote the conspiracy, and actually smuggled cell phones and other contraband to inmates at the detention center.
The indictment cites an incident in which Fuller, assisted by Carter and Byers, smuggled a cell phone, charger and 15 Xanax pills to an inmate at the detention center. Hughley took possession of the 15 Xanax pills, the indictment says. According to the indictment, $300 was paid to smuggle the cell phone and charger to an inmate.
In addition to the conspiracy, each of the defendants is charged with using a telephone in furtherance of the unlawful activity of acceding to corruption. Fuller is charged with one count; Carter is charged with three counts; Hughley is charged with three counts; Byers is charged with two counts.
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.
The federal indictments charge each of the defendants with violating 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.
Larson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt.
These cases are being prosecuted by Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Brent Venneman. They were 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.
Mission Hills Woman Sentenced for Lying About Cayman Islands BusinessesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Mission Hills, Kan., woman was sentenced in federal court today for impeding the work of the IRS by lying under oath about her Cayman Islands businesses, which were used in a scheme to hide millions of dollars in secret offshore accounts.
Verna Cheryl Womack, 66, of Mission Hills, was sentenced by U.S. District Judge Gary A. Fenner to one year and six months in federal prison without parole. The court also ordered Womack to pay $1,704,421 in restitution to the IRS, which she paid today.
For nearly 20 years, Womack engaged in a multi-faceted tax fraud involving offshore accounts designed to cheat the IRS. That cheating involved numerous forms of concealment, including sham nominees and trusts as well as false statements made under oath.
On April 5, 2016, Womack pleaded guilty to testifying falsely while under oath with the corrupt intent to impede the due administration of the Internal Revenue Code. According to court documents, Womack failed to report her offshore holdings as required by law in an effort to hide more than $6 million in income from the IRS.
According to court documents, Womack orchestrated the creation of an intricate web of offshore accounts, trusts, nominees and shell companies to conceal millions of dollars in unreported income. She hid her ownership of shell companies and trusts in the Cayman Islands to conceal income earned in the United States, transfer it to the Cayman Islands, and grow it tax-free until she chose to repatriate it to the United States. This resulted in a criminal tax loss of $1,704,421.
Womack began her business dealings in the Cayman Islands in 1995 when she formed the captive reinsurance company MFC Insurance Company in that country, but elected to have it file United States tax returns. She also opened personal checking and savings accounts in her own name at the Bank of Butterfield in the Cayman Islands. Womack failed to disclose the accounts on her tax returns. Womack created several trusts at the Bank of Butterfield. Womack used her Cayman Islands’ shell companies and trusts to evade reporting income to the IRS.
Womack, through her Cayman Islands companies, owns condominiums on Grand Cayman (to which she purported to pay rent as a means of concealing her income) and in Trump Tower in New York, N.Y. (which she purchased for $2.5 million).
Womack used a Cayman Islands company to hide over $500,000 in income from the sale of her wine collection at auction. Since the mid-1990s, Womack maintained two wine cellars in her home in Mission Hills that she used to store her personal collection of investment-grade wine. In 1996 she formed Lucy Limited in the Cayman Islands and began transferring funds to Lucy Limited, fraudulently concealed as consulting fees. Womack then used those funds to purchase wine for her collection. Lucy Limited kept the wine collection as an asset on its balance sheet but Womack never disclosed to the IRS her interest in Lucy Limited. In March 2008 Womack sold approximately half of her wine collection through an auction house in New York for approximately $1.6 million but did not include the revenue from that wine sale on her 2008 tax return.
In 2009, Womack was served with a subpoena to testify at a deposition in a civil enforcement action brought by the U.S. Department of Justice. This civil enforcement action sought to permanently enjoin Allen R. Davison from providing tax advice. Davison had previously served as Womack’s tax advisor, and later, as her business employee.
Womack complied with the subpoena and testified under oath at a deposition on May 19, 2009. Womack admitted that she answered questions falsely and with the corrupt intent to impede the due administration of the Internal Revenue Code.
During the deposition, the Dept. of Justice attorney asked Womack if she knew when a company called JoJoDi Insurance Company of Cayman was started. Instead of answering truthfully, Womack responded to the question by falsely stating that she did not know when JoJoDi was started. In fact, she knew that she had personally caused it to be started in 1997.
During the deposition, the Dept. of Justice attorney also asked Womack who owned Lucy Limited, another Cayman Islands business. Womack was the settlor and 1/3 beneficiary of the trust that owned Lucy Limited. Instead of answering truthfully, however, Womack falsely stated that Lucy Limited was owned by a group of investors. In fact, she knew that there were no such investors. Womack knew that she had caused the creation of both Lucy Limited and the trust that owned Lucy Limited.
This case was prosecuted by Assistant U.S. Attorneys Brian P. Casey and Stacey Perkins Rock. It was investigated by IRS-Criminal Investigation and the FBI.