Western District of Missouri
Press releases recorded for this federal judicial district.
KCK Man Sentenced to 25 Years for $1 Million Meth Conspiracy in St. Joseph, Four-State AreaRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was sentenced in federal court today for his role in a large-scale conspiracy that distributed more than 15 kilograms of methamphetamine in St. Joseph, Mo., and across a four-state region.
Anselmo Salazar, also known as “Crazy Eyes,” 49, of Kansas City, Kan., was sentenced by U.S. Chief District Judge Greg Kays to 25 years in federal prison without parole.
On Dec. 2, 2015, Salazar was found guilty of participating in a conspiracy to distribute methamphetamine from Jan. 1, 2009, to Nov. 12, 2013. Salazar was also found guilty of participating in a money-laundering conspiracy that involved financial transactions of the proceeds of illegal drug-trafficking.
In 2010, the Buchanan County Drug Strike Force and the Drug Enforcement Administration initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri, northeast Kansas, southern Iowa and Nebraska.
Salazar is among 24 defendants charged in a Nov. 15, 2013, federal indictment. Salazar, along with co-defendants Carlos Alberto Yanez, 33, of Lee’s Summit, Mo., and Marvin Carl Rogers, 54, of Gladstone, Mo. were the primary sources of supply for methamphetamine for the entire organization. Yanez has been sentenced to four years and seven months in federal prison without parole. Rogers has been sentenced to 16 years and 10 months in federal prison without parole.
Yanez and Salazar obtained methamphetamine in up to pound quantities and then delivered the methamphetamine to co-defendant Shannon Martinez (also known as “Big Homie”), 38, of St. Joseph, and another man charged in a separate case. Martinez, in turn, sold the methamphetamine to others to distribute. Martinez has been sentenced to 15 years in federal prison without parole.
On Oct. 11, 2011, Salazar was arrested after a traffic stop in Platte County, Mo. Salazar, who was was driving Yanez’s vehicle, was in possession of 42 one-pound bundles of marijuana, 25 grams of cocaine and 80 grams of methamphetamine. Salazar was on his way to deliver the methamphetamine to St. Joseph for Yanez, and to pick up cash payment for the delivered methamphetamine.
Salazar was ordered to forfeit to the government a money judgment of $680,800, which was received in exchange for the unlawful distribution of methamphetamine, based on a conservative purchase price of $1,850 an ounce (for 50 percent pure methamphetamine) and the distribution of 23 pounds of methamphetamine by Salazar and others.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Patrick C. Edwards. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the FBI, the Kansas City, Mo., Police Department, the St. Joseph, Mo., Police Department and the Buchanan County, Mo., Sheriff’s Department.
KC Man Indicted for $3.3 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for engaging in a nearly $3.3 million fraud scheme against a victim who invested more than $8.6 million in his companies.
John Clifford Williams, 65, of Kansas City, was charged in a 14-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Williams formed approximately 20 companies to perpetuate a fraudulent investment scheme between July 2005 and May 2014. Williams raised more than $8.6 million from his victim investor, identified in the indictment as “JM.” Williams fraudulently spent or diverted nearly $3.3 million of those funds for his own personal use during the nine-year investment fraud scheme, the indictment says.
Williams convinced JM to invest more than $2.6 million in an entity named Energy Operations, the indictment says, which Williams established to offer investors revenues derived from certain mineral rights concessions for gold and manganese mines in Central America. Williams allegedly claimed he intended to extract gold and manganese from mines located in Panama and Peru.
According to the indictment, JM travelled with Williams to Panama to visit some of the mines purportedly controlled by Energy Operations. After JM’s visit to Panama, Williams asked JM to make additional equity investments in Energy Operations. Unbeknownst to JM, the indictment says, all of the trips to Panama, including all travel expenses for Williams, the consultants and JM, were paid for with JM’s investment funds. JM never authorized Williams to use investment funds to pay for travel expenses or to pay himself a salary in connection with the investment in Energy Operations.
Williams raised $5.5 million from JM for another entity named American Hydraulic Power, LLC, the indictment says, which Williams founded to develop and commercialize an energy-efficient technology. Williams told JM the technology licensed from the EPA would allow for large commercial vehicles, such as delivery vehicles and trucks, to store energy generated by hydraulic braking systems. Williams further stated the stored energy would allow vehicles to run more efficiently by storing energy instead of relying alone on hydrocarbon- powered engines.
American Hydraulic Power entered into an agreement with a multinational automotive engineering firm to develop and commercialize the hydraulic braking technology. Williams agreed to raise additional capital to pay for the costs of developing the hydraulic braking system and he told JM he had other investors willing to invest. In reality, the only investor Williams secured was JM. American Hydraulic Power quickly ran out of money, stopped paying the engineering firm, and ceased all operations in early 2014. FEV (a company in Michigan that manufactures small engines) incurred a loss of approximately $17 million for work performed on behalf of American Hydraulic Power due to Williams’ misrepresentations.
Williams raised $5,000 from JM in connection with an investment to develop an island off the coast of Panama (Bona Island), the indictment says, and $36,000 for Namasta, which Williams claimed was an investment to gain access to a large bank account in the Netherlands that would ultimately secure additional funding for American Hydraulic Power.
Instead of using JM’s funds as Williams claimed for these investments, the indictment says, Williams misappropriated and diverted $3,299,953 for his own personal expenses, household expenses, travel expenses, his daughter’s wedding expenses and other expenses incurred by family members. This accounted for more than 38 percent of the total funds raised by Williams.
Williams allegedly used $1.1 million of the funds he misappropriated from JM to pay for a variety of personal expenses, including payments of at least $67,500 to his domestic partner for household expenses and other financial obligations, transferring approximately $32,000 of investor funds to bank accounts that he shared with his daughter, and paying $10,000 for his daughter’s wedding. Williams allegedly used at least $437,500 of the funds he misappropriated from JM to pay for such personal expenses as credit card bills, restaurant and grocery bills, healthcare expenses, holiday gifts and entertainment expenses.
In addition to using JM’s funds to support his lifestyle, the indictment says, Williams diverted JM’s investment money to fund other projects he promoted in the Democratic Republic of the Congo, Central America, and elsewhere. Williams allegedly diverted over $1.6 million of JM’s investment funds to pay for several projects unrelated to the investments. Williams allegedly transferred $124,000 of JM’s funds to a California-based water engineering firm. He allegedly diverted an additional $307,000 of JM’s money to Namasta. He allegedly spent $100,000 of JM’s funds to invest in a fraudulent scheme halted by the Securities Exchange Commission in 2013. Williams allegedly diverted $309,500 to Gargoyles, a company that was convicted of securities and mail fraud in an FBI investigation in Maryland in 2011.
Today’s indictment charges Williams with 10 counts of wire fraud and four counts of money laundering.
The indictment also contains a forfeiture allegation, which would require Williams to forfeit to the government any property derived from the alleged offenses, including $3.2 million.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Chinese National Indicted for Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chinese national was indicted by a federal grand jury today for his role in an international, multi-million dollar software piracy scheme.
Wen Tao Liu, also known as Orland Liu, 36, a citizen of the People’s Republic of China, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint filed against Liu on June 13, 2016, and contains additional charges. Liu, who was arrested on June 15, 2016, at Dallas Fort Worth International airport on an American Airlines flight during his return flight to China, remains in federal custody.
Today’s indictment alleges that Liu, doing business as Haitu International Group Co. Limited (an entity based in Hong Kong), participated in a conspiracy from March 10, 2010, to Feb. 2, 2015, to commit the offenses of unauthorized solicitation of access devices, trafficking in counterfeit goods and smuggling goods into the United States.
Liu allegedly obtained and sold counterfeit, illicit, and/or unauthorized Microsoft software, software products and related components, including unauthorized product key codes and counterfeit product key cards, causing the Microsoft Corporation millions of dollars in losses.
According to an affidavit filed in support of the original criminal complaint, investigators identified at least 4,659 individual product activation key codes distributed by Liu to various resellers across the United States, which were collectively activated over 36,000 times. Microsoft had already blocked 1,111 of those keys due to suspicions of piracy and 2,267 of the keys were already identified in the course of other Microsoft fraud investigations. Microsoft’s loss from the repeated activations of the 4,659 product keys could total approximately $9 million.
Liu allegedly acquired unauthorized product key codes and counterfeit product key cards for Microsoft software from others within the People’s Republic of China. According to the indictment, Liu supplied them to Kansas City, Mo., resident Casey Ross, Damascus, Md., resident Reza Davachi and numerous other individuals across the country. Co-conspirators in the United States, the indictment says, then resold these unauthorized product key codes and counterfeit product key cards for Microsoft software products to unsuspecting customers through their companies and affiliated Web sites.
For example, the indictment cites 105 wire transfers, totaling approximately $1,591,193, made to Liu by an unnamed co-conspirator in Florida for the purchase of unauthorized product key codes and counterfeit Microsoft Office “Lenovo” product key cards between April 14, 2014, and Feb. 10, 2015.
In addition to the conspiracy, today’s indictment charges Liu with one count of trafficking in counterfeit goods. According to the indictment, an undercover agent purchased 500 counterfeit Microsoft Office “Lenovo” product key cards from Liu for $35,000. Liu is also charged with one count of smuggling goods into the United States and one count of the entry of goods by means of false statements. According to the indictment, Liu smuggled the 500 counterfeit Microsoft Office “Lenovo” product key cards into the United States by shipping them in packages that falsely labeled them as gift cards with a total declared value of $50.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Curt Bohling. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Smithville Man Sentenced for Internet Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Smithville, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
Jacob A. Arnold, 20, of Smithville, was sentenced by U.S. Chief District Judge Greg Kays to 12 years in federal prison without parole. The court also sentenced Arnold to supervised release for the rest of his life following incarceration. The federal sentence will be served concurrently with Arnold’s 15-year sentence for child molestation in Clay County, Mo.
Arnold, who pleaded guilty on Oct. 22, 2015, admitted that he received child pornography over the Internet on March 17, 2015. According to court documents, Arnold was on bond for the state child molestation charge at the time he committed the federal offense.
On April 29, 2015, the Western Missouri Cyber Crimes (WMCC) Task Force received a cybertip from the National Center for Missing and Exploited Children regarding a video of child pornography that had been uploaded from Arnold’s computer to a DropBox account. On June 4, 2015, members of the WMCC Task Force and officers of the Smithville Police Department executed a state search warrant at Arnold’s residence. Officers seized computers, cameras, digital storage devices and a cell phone.
Child pornography was located on each of the items seized from Arnold’s residence, which must be forfeited to the government. Approximately 170 videos and 1,600 images of child pornography were located on the seized items. The images and videos included graphic depictions of sexual acts by adults against children as young as three years of age. Investigators also discovered a photo of a 7-year-old boy Arnold had been charged in state court with molesting, one of three prepubescent boys who accused Arnold of molesting them.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Western Missouri Cyber Crimes Task Force and the Smithville, 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."
KC Man Sentenced for Throwing Molotov Cocktails at Congressional OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for throwing Molotov cocktails at the local congressional office of U.S. Rep. Emanuel Cleaver II.
Eric G. King, 29, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole.
On March 3, 2016, King pleaded guilty to using explosive materials to commit arson.
On Sept. 11, 2014, at 2:52 a.m., a window was broken and two Molotov cocktails were thrown at Cleaver’s congressional office located at 101 W. 31st Street, Kansas City, Mo. The office was unoccupied at the time of the incident. A hammer used to break the window was recovered from the scene, as well as two broken Molotov cocktails. There was no fire damage to the building.
Video footage shows King, wearing a large backpack, walking to the congressional office. King retrieved two Molotov cocktails from his backpack, then walked around the parking lot for a few minutes in an apparent effort to hide from cars that were passing by. The video footage shows King throwing a hammer through the west window then lighting the two Molotov cocktails. The first Molotov cocktail bounced off the side of the building. King threw the second Molotov cocktail through the window then sprinted away from the office.
Detectives with the Kansas City, Mo., Police Department were investigating King in connection with a series of anti-government related incidents of vandalism in the immediate vicinity of the congressional office. The incidents occurred over the Labor Day weekend in 2014 and involved the spray painting of anti-government/anarchy graffiti. One of the incidents was at a Bank of America, from which investigators obtained video surveillance footage that showed King spray painting the bank.
Investigators reviewed social media and Facebook posts by King and noted one post from Sept. 3, 2014, that read, “KC Fight Back celebrated its first labor day with a lovely variety of action, action and more action against a series of government and Financial properties.” Other posts included King posting “KC Fight Back Insurrectionist Collective is alive,” and “these cops aren’t going to kill themselves, get to the streets.” On Aug. 10, 2014, King posted “I want to leave kc better than I found or an ashes.” A social media post by King on the day before the congressional office was attacked read, “KC Fight Back has been in serious in its Insurrection activity, and that is the thing that is giving me the most pride in my life.”
King was arrested as he was leaving his apartment on Sept. 16, 2014. When officers opened the backpack King was carrying at the time, they found a can of red spray paint, Kingsford Charcoal Lighter fluid, and a clear plastic soda bottle (containing a clear liquid) with a tube sock placed over it.
Officers searched King’s apartment and found a hand-written letter entitled “Operation House Committee.” The letter, in part, was a list that contained the following: “(1) Paint thinner/alcohol, (2) face cover/hand cover/all tattoos covered, (3) Three bottles glass, (4) paper towels, old rags/lighter, (5) drive/driver, must be someone trust with.” The letter then mentioned the steps to light the devices, then said to “use hammer/sledgehammer to break door,” “light bottles, throw them, light curtains,” and repeat these steps on “government buildings, all things police, certain law firms, corporations…” The first part of the backside of the letter read, “The arsons committed on Sept 11, 2014 were committed solely by the KC FIGHT BACK Insurrectionist Collective.”
The Molotov cocktails recovered from the congressional office were analyzed by the ATF crime lab in order to identify any DNA that might be present and a profile was developed from one of the bottles and one of the wicks. A sample of King’s DNA was obtained via a search warrant; King’s DNA matched the DNA found on both the wick and bottle.
This case was prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Jeffrey Q. McCarther. It was investigated by the FBI and the Kansas City, Mo., Police Department, the Federal Protective Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Greenfield Man Pleads Guilty to Enticing Two Teens for Illicit SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Greenfield, Mo., man pleaded guilty in federal court today to attempting to entice two teenage victims to engage in illicit sexual activity.
Christopher L. Johnson, 37, of Greenfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to both counts of a Sept. 30, 2015, federal indictment.
According to today’s plea agreement, Johnson engaged in text messages and Facebook messages that were sexual in nature with two victims, both under the age of 17, identified as Jane Doe 1 and Jane Doe 2. Johnson admitted to engaging in sexual contact with Jane Doe 1 at his residence.
Under federal statutes, Johnson 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 Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the FBI and the Dade 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."
Grandview Man Pleads Guilty to Armed Craigslist Robberies, Shooting Two VictimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Grandview, Mo., man pleaded guilty in federal court today to his role in a conspiracy to commit a series of armed robberies against victims who were contacted via craigslist, which culminated in the shooting of two victims.
Troy Wright, 23, of Grandview, pleaded guilty to the charges contained in a Sept. 19, 2014, federal indictment. Wright pleaded guilty to one count of conspiracy, six counts of aiding and abetting a robbery and one count of aiding and abetting the discharge of a firearm during a crime of violence.
By pleading guilty today, Wright admitted that he participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. Wright participated in six armed robberies that occurred after conspirators posted false advertisements to buy or sell items on craigslist.org in order to entice their victims to meet so that conspirators could steal money and electronics. Wright also admitted that he was involved in the shooting of two of their victims during their final armed robbery on July 16, 2013.
Co-defendant Debvon Buckner, 25, of Kansas City, Mo., has also pleaded guilty to his role in the armed robbery conspiracy, five counts of aiding and abetting the robberies and one count of aiding and abetting the discharge of a firearm during a crime of violence. Buckner was the primary point of contact with the victims. Buckner made initial contact with the victims, while his co-conspirators robbed them at gunpoint.
July 16, 2014, Armed Robbery and Shooting
On the evening of July 16, 2014, Wright and his co-defendants robbed and shot two victims (identified as M.N. and M.K.N.) near 5500 E. 84th Terrace, Kansas City, Mo. The two victims, along with their minor son, identified as D.N., had agreed to look at a Hyundai Sonata that was listed for sale in a craigslist advertisement. M.N. and D.N. took a test drive in the vehicle with Buckner and M.N. made a purchase offer. Buckner stated that he needed to call his wife about the purchase and walked away. As he walked away, Wright and another co-conspirator appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, but Wright and his co-conspirator began shooting M.N. and M.K.N. multiple times. Conspirators took money and personal property (including a purse that contained $500) from the victims then shot one of the victims again, striking him an additional time. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
July 16, 2014, Armed Robbery
Earlier on the same day, on the afternoon of July 16, 2014, Wright and his co-conspirators robbed a victim who had listed an XBOX One for sale on craigslist. The victim arranged to meet Buckner at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, Buckner approached him and asked to see the XBOX. When the victim handed him the XBOX, Wright and a co-conspirator then appeared and each pointed a firearm at the victim and demanded the XBOX One, XBOX games, and the accessories. They took those items then fled to their vehicle.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim was robbed while trying to buy an XBOX from a craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. Buckner refused to make the trade after examining the watch. When the victim began walking back to his car, Wright approached, pointed a gun at him and demanded the cash and watch. After taking the cash and watch from the victim, Wright and his co-conspirator fled from the area.
June 30, 2014, Armed Robbery
Wright and co-conspirators posted an advertisement for a phone for sale and made arrangements to meet the victim, identified as “D.B.,” after she responded to the advertisement. When the victim met with a co-conspirator, she decided not to purchase the phone and began to walk away. Two co-conspirators approached her, pointed guns at her and demanded money. After she gave the men $100 they demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and when alarm sounded all three of the conspirators ran away.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date. She had been contacted about purchasing an XBOX One that she posted for sale on Craigslist. When she arrived (with two minor children in her vehicle) at Ridge Pointe Apartments in Kansas City, Mo., Buckner told her that he wanted to see the XBOX. She got out of the vehicle, opened the trunk, and put the XBOX on the vehicle. Buckner grabbed the XBOX One and fled on foot. Wright and another co-conspirator, armed with handguns, approached and pointed the guns at the victims in the vehicle. They demanded all of their money, purses, and XBOX games and controllers. One of the victims asked for her purse back and one of the conspirators said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
June 26, 2014, Armed Robbery
Wright posted a Samsung plasma TV for sale on craigslist and, the same day, conspirators communicated with a victim for its purchase. The victims, including their infant child, were led to an apartment on E. 42nd Street, Kansas City, Mo. When they pulled out $170 to pay for the television, a co-conspirator came out from the bedroom armed with two handguns, pointed the guns in their face and demanded all their money. The victims gave them all their money and fled from the apartment.
Under the terms of today’s plea agreement, Wright is subject to a sentence of at least 20 years in federal prison without parole, up to a sentence of 27 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Former Joplin Little League President Pleads Guilty to Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former president of the Joplin South Little League has pleaded guilty in federal court to stealing approximately $50,000 from the Joplin, Mo., organization.
Diane L. Heikkila, 41, of Joplin, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, June 27, 2016, to a federal information that charges her with wire fraud.
By pleading guilty, Heikkila admitted that she engaged in a scheme to defraud and embezzle approximately $50,000 from the Joplin South Little League from September 2010 through January 2014.
Heikkila, while president, used the organization’s bank debit/credit card to make numerous purchases for personal gain. Heikkila often received “cash back” from the point-of-sale purchases when utilizing the debit/credit card. There were 217 incidents identified where “cash back” from point-of-sale transactions took place, with a total of $17,360 received as “cash back,” but these monies were never returned to the organization.
Heikkila also used the organization’s debit/credit card at ATMs to receive cash unrelated to the expenses of the Joplin South Little League. For example, on June 10, 2013, Heikkila fraudulently used the Joplin South Little League’s debit/credit card to conduct a $503 ATM withdrawal ($500 with a $3 fee) at Downstream Casino in Quapaw, Okla.
Heikkila also wrote and cashed checks to herself from the Joplin South Little League and often made cash withdrawals from the Joplin South Little League bank account.
The treasurer for the Joplin South Little League began reviewing account statements for the organization and in early 2014 discovered suspicious transactions taking place at retail stores, ATMs and casinos. The concerns were brought to the attention of the executive board for the Joplin South Little League and after a review Heikkila was removed from her position in March 2014.
Under the terms of her plea agreement, Heikkila must pay a money judgment in the amount of $50,000.
Under federal statutes, Heikkila is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI.
Columbia Business Owner Pleads Guilty to Selling Synthetic MarijuanaRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columia, Mo., business owner pleaded guilty in federal court today to distributing synthetic marijuana.
Rafiqul Islam Khan, 62, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to violate the Food, Drug and Cosmetic Act by trafficking in misbranded drugs.
Khan was the owner of Mari’s Gas Station at 1210 E. Prathersville Rd., Columbia. Khan admitted that he purchased synthetic marijuana from a co-conspirator and distributed synthetic marijuana at his business. Khan falsely and misleadingly referred to his synthetic marijuana products as “incense,” “herbal incense,” “potpourri,” “therapeutic potpourri,” and other erroneous names when, in fact, such products were intended for consumption in order to obtain a physiological effect of a “high.”
The synthetic marijuana products were misbranded drugs because they had false and misleading labels (which indicated they were not for human consumption); they did not bear adequate direction for use; or they did not bear a label containing the name and place of the business, the manufacturer, packer or distributor.
Boone County Sheriff’s deputies executed a search warrant at Mari’s Gas Station on June 25, 2012, and seized numerous packages of synthetic marijuana, totaling approximately 16.191 kilograms. Khan admitted that he sold and purchased for sale, in aggregate, at least 30.4 kilograms of synthetic marijuana.
Under federal statutes, Khan 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by IRS-Criminal Investigation, the Boone County, Mo., Sheriff’s Department and the Callaway County, Mo., Sheriff’s Department.
Five Sedalia Gang Members Sentenced for Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five members of a Sedalia, Mo., street gang were sentenced in federal court today for their roles in a drug-trafficking conspiracy that distributed at least five kilograms of cocaine and crack cocaine in the Sedalia area.
Operation Coin Collector focused on significant violent crime and drug-trafficking activity in the Sedalia area by a street gang called 5 Block. Numerous incidents involving firearms, shootings and murder surrounded members of 5 Block. The two-year-long investigation, which began in April 2010, resulted in six separate but related federal indictments in 2013 for drug-trafficking conspiracies that, in total, distributed more than $1 million worth of cocaine and crack cocaine.
Kenneth C. Kendrick, also known as “Kavi,” 43, Eric T. Hawkins, also known as “Easy,” 35, Kardell E. Sims, also known as “FU,” 37, George E. Buckner, also known as “Jorge,” 53, and Ronald C. Boggs, also known as “Hobbs,” 49, all of Sedalia, were sentenced in separate appearances before U.S. District Judge Dean Whipple. Kendrick was sentenced to 120 months in federal prison without parole. Hawkins was sentenced to 96 months in federal prison without parole. Sims was sentenced to 57 months in federal prison without parole. Buckner was sentenced to 84 months in federal prison without parole. Boggs was sentenced to 84 months in federal prison without parole.
Kendrick, Hawkins, Sims, Buckner and Boggs each pleaded guilty to participating in a conspiracy to distribute cocaine and crack cocaine from Oct. 5, 2011, to July 2, 2013. Under the terms of their plea agreements, they are jointly liable for a money judgment of $500,000, which represents their drug-trafficking proceeds, based on a conservative street price of $100 per gram and distribution during the conspiracy of five kilograms or more of cocaine and crack cocaine.
Between March 2012 and July 2013, numerous purchases of firearms, crack cocaine, and cocaine were made by confidential informants from members of 5 Block while monitored by law enforcement officers. These purchases occurred in Sedalia and focused primarily in the territory 5 Block operates. Five court-ordered wiretaps were authorized in this case. During these wire taps the members of 5 Block were intercepted and overheard discussing various narcotics and firearms transactions.
Kendrick admitted that he was involved in the distribution of approximately 235.95 grams of crack cocaine and 533.855 grams of cocaine. Hawkins admitted that he was involved in the distribution of approximately 613.3 grams of cocaine and approximately 121.3 grams of crack cocaine. Sims admitted that he was involved in the distribution of approximately 23 grams of crack cocaine. Buckner admitted that he was involved in the distribution and/or purchase of approximately 48.2 grams of crack cocaine. Boggs admitted that he was involved in the distribution and/or purchase of approximately 318.8 grams of cocaine and approximately 14 grams of crack cocaine.
Kendrick’s father, Lee A. Kendrick, 68, Marvin D. Spruell, 59, and his wife, Vickey J. Spruell, 58, all of Sedalia, have also pleaded guilty and have been sentenced.
This case was prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Joseph M. Marquez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the ATF-led JOLT (Joint Operations Law Enforcement Team) Task Force – comprised of the Sedalia, Warrensburg and Warsaw police departments and the Pettis County, Hickory County, Henry County, Johnson County and Benton County sheriff’s departments – and the Pettis County, Mo., Prosecutor’s Office.
Independence Woman Sentenced for $235,000 Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., woman was sentenced in federal court today for her role in a $235,000 arson and insurance fraud conspiracy.
Tina L. Shonk, 35, of Independence, was sentenced by U.S. District Judge Brian C. Wimes to three years and six months in federal prison without parole. The court also ordered Shonk to pay $242,717 in restitution to her victims and to forfeit to the government $62,364.
On Jan. 29, 2016, Shonk pleaded guilty to participating in a conspiracy to commit arson and wire fraud, and to one count of mail fraud. Shonk admitted that she led an arson and insurance fraud conspiracy in 2014. Shonk obtained renter’s insurance on a house she rented in the 3500 block of Garfield in Kansas City, Mo., then burned the house with the help of co-conspirators, and made false claims on the insured property.
Co-defendant Roy Thieman, 31, of Kansas City, also pleaded guilty to his role in the scheme and awaits sentencing.
In January 2014 Shonk obtained renter’s insurance, claiming personal property valued at $82,000, much more than the value of her personal property. At the time, Shonk owed approximately $7,929 in back due rent and the gas had been shut off due to non-payment. On April 2 and 3, 2014, Shonk and her co-conspirators moved any personal property of value to a storage unit. They also moved damaged and broken electronic equipment and appliances into the house so that it would appear that valuable appliances were destroyed. By this time, Shonk owed $10,356 in back due rent and her landlord had begun eviction proceedings.
On April 4, 2014, Shonk and her co-conspirators set fire to the house by covering a space heater with a blanket and setting fire to the blanket, and then leaving the house. The Kansas City Fire Department extinguished the fire but the house was a total loss.
After the fire, Shonk submitted fraudulent personal property claims totaling $112,789, although several witnesses and Shonk’s landlord estimated Shonk’s property to be valued at only approximately $500. The insurance company paid Shonk $57,364; she paid Thieman $2,500 and a third co-conspirator $4,000.
The owner of the house had an insurance policy that paid out a total of $173,100.
In May 2014, Shonk and Thieman moved into a house in the 3800 block of Pittman Road in Kansas City, Mo., a property managed by a fourth co-conspirator. On Oct. 18, 2014, police arrested this co-conspirator and found a letter from Thieman to Shonk outlining a plan to repeat the arson insurance fraud scheme at the house on Pittman Road. Thieman wrote a letter to Shonk outlining plans to insure their personal property and then burn the house, stating in part, “there can be no evidence, nor signs of foul play, or accelerant.”
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Husband, Wife Plead Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Clark, Mo., couple have pleaded guilty in federal court to their roles in a conspiracy to distribute methamphetamine in Randolph and Boone Counties, Mo.
Miguel Flores-Ramirez, 33, of Clark, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth today to the charge contained in an Oct. 1, 2014, federal indictment. His wife, Kena Marie Flores-Ramirez, pleaded guilty on May 19, 2016, to her role in the conspiracy.
According to today’s plea agreement, law enforcement officers intercepted phone calls between Miguel Flores-Ramirez and another individual that indicated a shipment of methamphetamine was to be delivered to him in Columbia, Mo. He arranged for Kena Flores-Ramirez and a co-conspirator to pick up a vehicle in which the methamphetamine was hidden and drive the vehicle back to their residence in Clark.
Officers saw Kena Flores-Ramirez leave their residence at 5:21 a.m. on May 23, 2014. She and a co-conspirator drove to a parking lot on Vandiver Drive in Columbia, where they met a car carrier. Her co-conspirator drove out of the parking lot in a maroon 1999 Toyota Tacoma with no registration that had been on the car carrier.
Law enforcement officers made contact with the driver of the car carrier, who stated that he worked for a logistics company from Maryland. He showed the agent a bill of lading for a 1999 Toyota Tacoma that he had just delivered. He stated that he had obtained the vehicle on May 21, 2014, in Denver, Colo., and that it was the last vehicle he picked up before driving to Columbia. He stated that he just delivered the vehicle and was paid a $600 transport fee.
Officers conducted traffic stops of both Kena Flores-Ramirez and her co-conspirator. A narcotics dog alerted to the area of the rear bumper and the passenger side rear wheel well on the exterior of the Toyota Tacoma. They were released, but officers kept the Toyota Tacoma in order to conduct a more thorough search. After they left, officers intercepted a phone call in which Kena Flores-Ramirez called her husband and told him they had been stopped, the truck had been taken, and to clean out the house and dispose of everything. Later that day, officers intercepted a phone call from Miguel Flores-Ramirez to another individual in which he said “they will find something” (the methamphetamine) “if they tear it (the Tacoma) apart.”
Officers searched the Toyota Tacoma and found six large vacuum-sealed bags and four smaller bags of methamphetamine hidden in the gas tank. The large bags weighed approximately one pound each, and the smaller bags approximately a half-pound each, for a total of 3.492 kilograms of pure methamphetamine.
Under federal statutes, both Miguel and Kena Flores-Ramirez are 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 Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the FBI, IRS-Criminal Investigation and the Missouri State Highway Patrol.
Former KC Group Home Operator Sentenced for $400,000 Tax Evasion SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former operator of several group homes for mentally and physically handicapped residents in Kansas City, Mo., was sentenced in federal court today for a nearly $400,000 scheme to evade paying taxes.
Dedree R. Carlisle, 52, of Kansas City, Mo., was sentenced by U.S. District Judge Dean Whipple to two years in federal prison without parole. The court also ordered Carlisle to pay $397,213 in restitution.
On March 9, 2016, Carlisle pleaded guilty to attempting to evade taxes. Carlisle owned and operated a group home health care business at multiple locations in Kansas City, Mo., from 2005 until her business shut down after her guilty plea. Originally Carlisle’s business was called “Carlisle’s Garden of Peace” but she changed the name in 2009 to “Mracles Residential Care.” Mracles cared for mentally and physically handicapped residents in a group home setting, leasing multiple houses in residential neighborhoods, under contracts with the Missouri Department of Social Services. Mracles had between 12 and 20 employees at its multiple residences.
Carlisle admitted that she engaged in a scheme to defraud the IRS and the state of Missouri for the purpose of evading payment of at least $397,213 in federal and state taxes, penalties and interest, beginning in 2006.
Due to Carlisle’s failure to file returns or pay taxes, according to court documents, the IRS opened a civil investigation of her business, but she continued to miss deadlines and pay over taxes she withheld from her employees. Carlisle made her last voluntary tax payment in September 2009, of $1,000. The IRS issued a levy on her bank account in October 2009, seizing $29,885. Two months later, Carlisle informed the revenue agent that her business was shut down. The agent later learned that Carlisle had registered a new business, Mracles, in her daughter’s name – but except for the new name, the business remained the same. It had the same employees, same group homes, same clients, and Carlisle continued to sign the payroll checks. As with Carlisle’s Garden of Peace, Mracles continued to withhold employee taxes and not pay them over.
Carlisle failed to pay over employment taxes totaling $131,649 for her residential health care facilities from 2008 to 2010. Carlisle withheld state and federal taxes from her employees’ paychecks, and then used that money for her own personal benefit. She also failed to pay over the business portion of the employment taxes. She also failed to pay taxes on her own income – she earned $64,500 in 2009 and $65,000 in 2010 and paid no state or federal income taxes. Additionally, she claimed personal unpaid federal taxes of $28,561 for 2011 - 2012.
According to court documents, Carlisle was repeatedly notified of the amounts of her substantial taxes, penalties and interest due. Carlisle was notified in June 2011 that she was the subject of a criminal investigation. Up until her business shut down after her guilty plea in March 2016, Carlisle continued to withhold employee taxes and spend them for personal use. And she has made no payments on any taxes, personal or employment, during the investigation or after pleading guilty.
Carlisle admitted that she gambled heavily, including at 7th Street Casino in Kansas City, Kan., with funds debited directly from her business accounts. Carlisle used her business accounts as her personal charge accounts. She did not report, on her tax returns, many of these personal expenses as income, including charges for thousands of dollars made on business debit cards from 2006 through 2010 at Kansas City area casinos. Carlisle spent a total of $127,165 at 7th Street Casino from 2008 to 2010. Casino records show that Carlisle had winnings of $320,200 in 2010, $145,200 in 2009 and $29,219 in 2008.
Carlisle also wrote checks to herself from her business bank account in 2010 with references in the memo line to payroll, bonus, draws or advances totaling $65,000.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Arkansas Man Sentenced for Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Crawford, Ark., man was sentenced in federal court today for leading a bank fraud conspiracy that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Mo., and elsewhere.
Phillip Daren Shockey, 50, of Crawford, was sentenced by U.S. District Judge M. Douglas Harpool to 11 years and two months in federal prison without parole. The court also ordered Shockey to pay a money judgment of $159,842, which includes $114,127 to 14 banks and credit unions in Missouri.
Shockey, who pleaded guilty on Jan. 14, 2015, admitted that he was the leader of a conspiracy to defraud more than a dozen banks from July 31, 2013, to Feb. 28, 2014, by passing counterfeited and forged checks with fake identification documents. At least 12 co-conspirators stole mail, printed counterfeit checks, passed counterfeit checks with fake identification and opened at least five fictitious businesses for the sole purpose of concealing the deposit and subsequent withdrawal of counterfeit checks.
Shockey recruited co-conspirators to steal mail and act as “check runners” who used false identity documents in order to cash fraudulent checks drawn upon the accounts of bank customers. Shockey possessed computers, printers, scanners, cell phones, thumb drives, stolen mail and software in order to produce fraudulent identification and checks for his co-conspirators. Shockey also used false identifications of the banks’ customers and others in order to pass and attempt to pass fraudulent checks.
Shockey and those working at his direction passed and attempted to pass approximately 51 checks for a loss of at least $159,842.
Co-defendant James Erin Guerin, also known as “Shorty,” 42, of Tulsa, Okla., formerly of Sparta, Mo., pleaded guilty to being an accessory after the fact to aggravated identity theft and awaits sentencing.
Guerin was the owner of Rogersville Septic Services, LLC. Guerin paid Shockey’s $5,000 bond when he was released from custody in Arkansas on July 31, 2013, and Shockey was mandated to live with Guerin in Sparta. Shockey, who had been in federal custody in Arkansas for wire fraud, began to create fictitious financial documents using bank accounts and routing numbers of legitimate customers of Guerin’s plumbing business.
In August and September 2013, Guerin became aware that Shockey had taken the bank account and routing numbers from his plumbing business customers and was using them to produce fictitious financial documents such as bogus checks drawn upon the customers’ bank accounts. After learning of Shockey’s use of his customers’ bank accounts, Guerin continued to provide comfort and assistance to Shockey. Shockey was given sanctuary at Guerin’s residence to continue his illegal operation.
Four co-defendants have pleaded guilty and been sentenced. Michael Anthony Spears, 37, of Fort Smith, Ark., was sentenced to seven years in federal prison without parole. Donald Allen Spears, 35, of Columbia, Mo., was sentenced to two years and three months in federal prison without parole. Amanda Brook Roberts, 31, of Tulsa, was sentenced to three years and one month in federal prison without parole. Laura Goines, 33, of Tulsa, was sentenced to time served.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Secret Service Financial Crimes Task Force, the U.S. Postal Service – Criminal Investigations, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Tulsa, Okla., Police Department, the Jasper County, Mo., Sheriff’s Office, the Webster County, Mo., Sheriff’s Office, the Greene County, Mo., Sheriff’s Office, the Columbia, Mo., Police Department, the Blue Springs, Mo., Police Department, the Monett, Mo., Police Department, the Pierce City, Mo., Police Department, the St. Clair County, Mo., Sheriff’s Department, the Rolla, Mo., Police Department and the Catoosa, Okla., Police Department.
Atlanta Man Sentenced for Fraud Scheme That Used Homeless to Cash Counterfeit ChecksRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Atlanta, Ga., man was sentenced in federal court today for leading a bank fraud conspiracy that used homeless men to cash counterfeit payroll checks at banks in the Kansas City area.
Norman Weaver, 51, of Atlanta, was sentenced by U.S. Chief District Judge Greg Kays to eight years in federal prison without parole. The court also ordered Weaver to pay $57,772 in restitution.
On Oct. 20, 2015, Weaver pleaded guilty to participating in a conspiracy to commit bank fraud from Dec. 21, 2012, to Feb. 1, 2013.
According to court documents, Weaver created and led a crime wave throughout several states. Weaver led a conspiracy to steal business mail then use banking information from that stolen mail to counterfeit checks on business accounts. Conspirators recruited homeless men to pass the counterfeit checks to banks. The scheme was very successful for approximately 10 years, which led to the formation of several “crews” originating from Atlanta.
Weaver led one of the longest-lasting and most prolific of the crews. More than $400,000 in counterfeit checks was passed in the Kansas City area over the course of a few months in late 2012 and early 2013. Nationwide, more than $8 million in counterfeit checks was passed by various crews traveling across the country.
Once the counterfeit checks were made, Weaver passed them to the handlers, who then passed them to the homeless persons to cash at local banks. Once checks were successfully passed, Weaver got the money and distributed it as the leader. Investigation revealed an intended loss of $106,341 attributable to Weaver, which included an actual loss of $57,772.
In addition to Weaver, 10 co-defendants from the Atlanta area pleaded guilty to their roles in this conspiracy. Markus Allen Bryant, 34, Gary Merritt, 56, Anthony Bernard Lowe, 54, Preston Tyrone West, 57, Derrick Nate Andrews, 25, Howard Youngblood, 42, and Michael Lee McWilliams, 54, worked for Weaver and recruited more than 75 homeless people to use their own identification to cash the checks. Calvin Almond, 49, assisted others in the scheme and acted as a personal driver for Weaver. Truly Bernard Matthews, 50, assisted in the printing of counterfeit payroll checks. Ariel Weaver Morris, 43, provided check stock to the conspirators to make the counterfeit checks.
Matthews was sentenced to 10 years and four months in federal prison. Bryant and Merritt were each sentenced to five years in federal prison. Lowe was sentenced to four years and four months in federal prison. Almond was sentenced to two years and 11 months in prison. Howard Youngblood, Michael McWilliams and Derrick Andrews were each sentence to time served. Morris is scheduled to be sentenced on Wednesday, June 22, 2016.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Inspection Service, the Kansas City, Mo., Police Department, the Leawood, Kan., Police Department and the Atlanta, Ga., Police Department.
Two Men, One Woman Charged with Luring Robbery Victims with Online Escort AdsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two men and a woman have been charged in federal court for their roles in a conspiracy to use online ads for escort services as a means to lure victims to hotel rooms in order to rob them.
Kenneth W. Sexson, 32, Sage E. Harrison, 34, and Nicole L. Covey, also known as Nicole Waguespack and Nicole Preston, 33, all of the Kansas City metropolitan area, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Wednesday, June 8, 2016. That complaint was unsealed and made public today at the initial court appearances of Sexson and Covey. Harrison remains at large.
Today’s federal criminal complaint alleges that Sexson, Harrison and Covey participated in a conspiracy to rob individuals by using several websites (including craigslist.org, backpage.com and skout.com) to make connections with their victims. They allegedly communicated through these websites to arrange meetings with their victims in order to rob them. In addition to the conspiracy, the complaint charges each of the defendants in one count of robbery affecting interstate commerce.
According to an affidavit filed in support of today’s complaint, Sexon, Harrison and Covey used social media services to post ads with Covey’s photo in order to lure victims into meeting in person. Once Covey began communicating with the victim, they would agree to meet at a hotel or apartment. When the victim arrived at the agreed upon location, Covey would excuse herself to the restroom or walk away as co-conspirators robbed the victim of money, phones and other items.
According to the affidavit, conspirators used handguns, or what appeared to be handguns. They allegedly sometimes assaulted their victims and one victim told investigators that his attackers took his vehicle and he escaped by jumping from the moving vehicle on the highway in fear for his life.
The affidavit cites a series of seven robberies that occurred in October 2015 in Kansas City, Mo.; Independence, Mo.; and North Kansas City, Mo. Investigators learned of a number of additional robberies disclosed during interviews, including two robberies in Blue Springs, Mo.
On May 27, 2016, Independence police officers received a report regarding a new robbery. The victim reported that he had responded to a Craigslist ad for a female escort. Upon arriving at the hotel room in Independence, the victim was instructed to leave the money on the nightstand. After he set the money down, the female excused herself to the bathroom, and the victim was confronted by three large white males. Investigators identified Sexson, Covey and others as suspects in that robbery.
Sexson and Covey were arrested in Kansas on June 7, 2016. According to the affidavit, Independence police officers responded to a witness’s report of shots being fired at her from another vehicle. They located a white U-Haul cargo van being driven by Sexson near Highway 291 and Truman Road. A pursuit was initiated, which reached speeds of more than 100 miles per hour. During the pursuit, police officers saw an unknown object get thrown from the vehicle. A handgun, a magazine and ammunition were recovered at this location. Officers also saw two long guns get thrown from the vehicle. Two shotguns were located and recovered in this area. The pursuit continued toward Leavenworth County, Kan. Tire deflation devices were deployed against the van multiple times. The pursuit ended only after the van became disabled as a result of the damage suffered during the pursuit. Sexson, Covey and two other individuals were arrested.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, the Kansas City, Mo., Police Department, the North Kansas City, Mo., Police Department, the Independence, Mo., Police Department, and the Blue Springs, Mo., Police Department.
Joplin Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Mark Eugene Drew, 59, of Joplin, was sentenced by U.S. District Judge Beth Phillips to eight years in federal prison without parole.
On Jan. 25, 2016, Drew pleaded guilty to receiving and distributing child pornography.
Court documents cite Drew’s long-term involvement in a Web site that hosted a massive collection of child pornography and erotica, some of which Drew contributed. Beginning in November 2010, the Department of Justice Child Exploitation and Obscenity Section launched an investigation into a Web site (referred to as “website A” to protect the integrity of the investigation) that was used to post and exchange depictions of the sexual abuse of children. During the course of the investigation, approximately 24 individuals in the United States were identified as contributors to “website A.” In over half of these cases, the investigation revealed that the users not only posted images to “website A,” but also actively committed sexual crimes against children.
Drew was identified as one of the contributors. According to court documents, he created digital albums and posted them to a Web site utilized for the exchange of child pornography. Law enforcement officers executed a search warrant at Drew’s residence on Nov. 21, 2013, and seized three computers, a flash drive and a DVD. A total of 351 images of child pornography were found on the computer equipment. Messages exchanged between Drew and other individuals were also recovered. During these exchanges, Drew claimed to have engaged in sexual intercourse with a minor.
Drew also admitted to the investigators that he was sexually attracted to children and bragged about having sex with children.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Independence Man Charged with Possessing Firearm Stolen from Police Officer's HomeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was charged in federal court today with illegally possessing a firearm that had been stolen during the burglary of a Belton, Mo., police officer’s residence.
Paul M. Leach, 35, of Independence, was charged with being a felon in possession of a firearm in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Leach was in possession of a Sig Sauer .45-caliber semi-automatic handgun on June 12, 2016. According to an affidavit filed in support of the criminal complaint, the handgun was the duty weapon issued to a police officer at the Belton Police Department, which was reported as stolen on Dec. 10, 2015, in a residential burglary in Lee’s Summit, Mo.
Independence police officers were called to the intersection of E. 51st Street South and Cottage Street in Independence on the afternoon of Sunday, June 12, 2016, in response to a report of a suspicious person armed with a gun and allegedly under the influence of illegal drugs. They made contact with Leach, who was seated in a chair near the garage door of a residence on Cottage Street.
Leach fled on foot, the affidavit says, running across the lawn and down the road. As he was being pursued, the affidavit says, officers saw him reach into the waistband area of his pants and remove the loaded Sig Sauer handgun. Leach allegedly discarded the firearm into a shrub or bush. He was pursued a short distance from where he was observed abandoning the firearm, the affidavit says, and was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Leach has three prior felony convictions for aggravated battery and kidnaping and a prior felony conviction for robbery. Leach is currently under the supervision of the Kansas Department of Corrections, Office of Probation and Parole.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Gladstone Man Sentenced for CounterfeitingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was sentenced in federal court today for making and passing more than $15,000 in counterfeit money.
Robert Q. Liggans, also known as “GQ or “G,” 23, of Gladstone, was sentenced by U.S. District Judge Dean Whipple to four years and two months in federal prison without parole. The court also ordered Liggans to pay $13,850 in restitution.
On Feb. 2, 2016, Liggans pleaded guilty to leading a conspiracy to manufacture, possess and pass counterfeit money from Sept. 23, 2013, to Jan. 15, 2015.
Conspirators used computer software and hardware, printers, scanners, paper, ink, and other materials to use and to make counterfeit $20 and $100 bills. They made purchases with the counterfeit money at various retailers (more than 10 Target stores, Plato’s Closet, Dollar Stores, fireworks stands and others). After making the purchases, conspirators later returned the items to obtain cash and/or gift cards.
Liggans admitted that, on 33 occasions, he passed or possessed a total of $13,850 in counterfeit money. Liggans also admitted that he passed at least $1,150 in counterfeit money at additional businesses, but they are not identifiable and therefore no subject to restitution payment. Liggans admitted that his total counterfeit activity was in excess of $15,000.
Liggans was released on bond on June 12, 2015, but failed to appear for his arraignment on June 24, 2015. He was arrested in Kansas on Aug. 13, 2015, during a high speed chase in a stolen vehicle and has been in federal custody since that date.
This case was prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by the U.S. Secret Service, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.
Former St. Joseph School Supeintendent Pleads Guilty to $662,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former superintendent of the St. Joseph School District and former president of the Board of Education pleaded guilty in federal court today to a fraud scheme in which he received more than $662,000 in pension payments to which he was not entitled.
Danny L. Colgan, 70, of St. Joseph, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges him with one count of wire fraud.
“Today’s criminal felony conviction brings to conclusion an extensive, thorough investigation into fiscal wrongdoing in the St. Joseph School District,” Dickinson said. “I commend the professionalism and perseverance of the FBI agents and prosecution team involved in this investigation. We do not anticipate charges against any additional defendants in the future.”
Under the terms of the plea agreement, Colgan will be sentenced to one year and one day in federal prison. He must pay $662,660 in restitution prior to his sentencing hearing (which has not yet been scheduled). Colgan was released on bond.
Colgan was the superintendent of the St. Joseph School District from July 1, 1992, until his retirement on Dec. 31, 2005. Colgan was entitled to retirement benefits from the Public School and Education Employee Retirement Systems of Missouri (PSRS) with the amount of the retirement benefits based upon his highest consecutive three years of reported salary.
By pleading guilty today, Colgan admitted that he caused others to falsely report his salary to the PSRS in order to increase his retirement benefits. Colgan knew that the salary figures he caused the school district to submit to PSRS on his behalf included fringe benefits and other payments to Colgan that were not eligible to be counted as salary under state statutes.
This fraud scheme began during the 1997-98 school year and lasted for eight years, until Colgan’s retirement. Colgan’s retirement benefits were calculated by using the amounts reported by the school district over the final three-year period before he retired.
During that final three-year period, the school district falsely reported that Colgan’s salary totaled $586,030. In reality, his salary totaled $343,286 – a difference of $242,744. As a result of the false statements to the PSRS, the school district made excess payments in the amount of $14,652 to the PSRS from 2003 through 2005, and Colgan was paid excess benefits that totaled $677,313 over a 10-year period.
Colgan’s salary reported for his final three years as school superintendent improperly included the following:
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Car Allowance/Travel Stipend: The $9,600 car allowance/travel stipend was a fringe benefit that was ineligible for retirement salary calculation purposes;
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Family Insurance Premiums: The family insurance benefits/premiums paid by the district of $5,225, $5,603, and $6,258 were fringe benefits that were ineligible for retirement salary calculation purposes;
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District Contribution to Taxable Annuity: The district payment for the school year 2004-2005 of $25,000 to purchase a taxable annuity for the superintendent was ineligible for retirement salary calculation purposes;
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“District Vehicle” Payments: In the final three years, the school district reported “District Vehicle” payments of $11,300, $11,300, and $28,975. The “District Vehicle” payments were separate from the $800 per month car allowance payments (described above). The “District Vehicle” payments were fringe benefits that were ineligible for retirement salary calculation purposes; and
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Unused Vacation Payment: An unused vacation payment in June 2005 of $10,820 was a fringe benefit that was ineligible for retirement salary calculation purposes.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
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Unionville Man Pleads Guilty to Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Unionville, Mo., man pleaded guilty in federal court today to possessing child pornography.
Joel R. Bremer, 50, of Unionville, pleaded guilty before U.S. District Judge Roseann Ketchmark to the charge contained in an April 15, 2015, federal indictment.
According to today’s plea agreement, the Putnam County Sheriff’s Department received a report in February 2013 from a 19-year-old female that she had been sexually abused by Bremer for a period of time when she was a child. She also stated that Bremer had taken nude photographs of her when she was a minor and that she had recently seen those pictures on his laptop computer, which he kept in his home.
Investigators with the Putnam County Sheriff’s Department and the Kirksville Regional Computer Crimes Unit executed a search warrant at Bremer’s residence on Feb. 11, 2013, and seized a laptop computer and several CD/DVDs, which Bremer must forfeit to the government. A forensic analysis was conducted at the Kirksville Regional Computer Crime Laboratory. No pornographic images of the reporting party were located; however, the analysis located approximately 1,472 photos and 40 videos which contained child pornography that appeared to have been obtained via the Internet. The content of the numerous images and video files include depictions of adults engaging in sexual conduct with prepubescent children, including toddlers.
Under the terms of today’s plea agreement, the government will seek a maximum sentence of 10 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Putnam County, Mo., Sheriff’s Department, the Kirksville, Mo., Police Department and the Kirksville Regional Computer Crimes Unit.
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 for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing Commerce Bank.
David E. Clark, 37, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to five years in federal prison without parole. The court also ordered Clark to pay $3,037 in restitution.
On Dec. 8, 2015, Clark was convicted following a bench trial of stealing $3,037 from Commerce Bank, 118 W. 47th Street, Kansas City.
Clark was wearing an orange construction-type vest when he entered the bank on July 28, 2014. He walked directly towards a teller station and grabbed a note from his pocket. The teller refused to look at the note and asked Clark if he needed help. Clark told the teller to pull out his drawers. When the teller told him the teller drawers were locked, Clark instructed him to get the keys. The teller returned to his teller station, and Clark told him to “give me 100’s, 50’s and 20’s.” The teller grabbed the requested denominations from his teller drawer and gave the money to Clark, who walked swiftly out of the bank’s front door and then ran up Wyandotte Street.
Another bank employee saw Clark go around the corner and then exit a parking garage in a white truck with a concrete company’s sign on the side. Less than half an hour later, police officers located Clark and arrested him after a brief car chase. The stolen money was not recovered at the time of Clark’s arrest.
According to court documents, the owner of the truck told law enforcement investigators that he had driven the vehicle to a meeting earlier that day and offered a ride to Clark, who had done work as an independent contractor for his company. After his meeting he was supposed to take Clark to another location, but when he returned to the parking lot after his meeting, both Clark and his truck were gone.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Charged with Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with possessing nearly five kilograms of methamphetamine to distribute. During the law enforcement operation, another individual was fatally shot.
Michael J. Wilkins, 25, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., with possessing methamphetamine with the intent to distribute.
According to an affidavit filed in support of today’s criminal complaint, DEA task force officers were conducting a multi-jurisdictional operation on Wednesday, June 8, 2016. Wilkins, a suspected methamphetamine distributer, was seen leaving his residence in a red 1995 Ford Mustang. Investigators followed Wilkins to a residence in the 300 block of S. Bellefontaine Ave., Kansas City, Mo. Wilkins, the only occupant of the vehicle, was seen carrying a black bag as he walked into the residence.
After a short time, the affidavit says, Wilkins left the residence, carrying the black bag as well as a large white box. Wilkins placed both items in the passenger seat of the Ford Mustang and walked around the rear of the vehicle to the driver’s side door. When law enforcement officers approached him, the affidavit says, Wilkins fled on foot. He was subsequently taken into custody and placed under arrest for fleeing/resisting law enforcement.
During the foot chase of Wilkins, law enforcement officers executed a search warrant at the Bellefontaine residence. That operation led to an hours-long standoff when persons inside the house fired shots at law enforcement officers. When an individual who had fired several shots at officers ran from the house with his rifle aimed at the officers, he was fatally shot.
Officers searched the route where Wilkins had fled, the affidavit says, and found a Citadel M1911-A1 CS handgun. Officers also searched Wilkins’s Ford Mustang and found a white Corona beer box, which contained five gallon-sized plastic bags of methamphetamine. A black backpack contained $12,363 and a plastic baggie with methamphetamine. A tool bag also contained methamphetamine. In total, officers found 4.764 kilograms of methamphetamine in the vehicle.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez and Special Assistant U.S. Attorney Matthew Moeder. It was investigated by the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Drug Enforcement Administration.
Versailles Woman Pleads Guilty to $400,000 Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Versailles, Mo., woman has pleaded guilty in federal court to a fraud scheme in which she stole nearly $400,000 from her employer.
Abbie Martin Stemper, 43, of Versailles, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, June 7, 2016, to one count of wire fraud and one count of bank fraud.
Stemper worked as a bookkeeper and purchasing agent at Smith Paper & Janitor Supply (SP&JS) in Eldon, Mo., from the spring of 2009 to February 2015, when her employment was terminated.
By pleading guilty today, Stemper admitted that she embezzled $397,122 from Smith Paper & Janitor Supply and its wholly owned subsidiary, White Castle Service and Supply in Springfield, Mo., from June 2010 to February 2015.
The thefts took several forms:
Stemper had entered into an agreement with SP&JS to purchase some of SP&JS’ product and sell it to customers who were not customers of SP&JS. Payments for these sales were made via cash, check or PayPal, and were deposited into financial accounts Stemper owned or controlled. Stemper received payments totaling $233,806 for products that she sold through her own business entities but she did not reimburse SP&JS for the products she took (except for $688).
Stemper also admitted that she created false refunds for various SP&JS customers, and then directed the refunds to her debit cards or a card that she controlled at various banks, in a total amount of $22,704. In addition, Stemper stole cash from SP&JS and made $74,518 in cash deposits into her personal checking accounts.
SP&JS had an Amazon customer account in which its products were sold through Amazon. Amazon collected the payments received for sales of SP&JS’s products, and forwarded those payments to the company’s bank accounts. Stemper admitted that, on several occasions, she altered SP&JS’s Amazon account profile information to direct withdrawals from this account to be deposited into her personal bank account. Stemper admitted that she caused Amazon to wire a total of $13,422 in payments due SP&JS to her personal bank account.
In October 2013, SP&JS acquired White Castle Service and Supply, which also sold cleaning and janitorial supplies. Stemper admitted that she intercepted and stole 234 customer checks totaling $53,358 payable to White Castle and deposited them into her personal bank account. Stemper had registered “White Castle Service” with the Missouri Secretary of State as a fictitious name with a business address that was her personal residence, then added “DBA White Castle Service” to her personal bank account in order to mislead her bank that deposits of checks from customers of White Castle (SP&JS’s subsidiary) were legitimate deposits, and thereby conceal and facilitate the theft.
Under federal statutes, Stemper is subject to a sentence of up 30 years in federal prison without parole on each of the two counts and an order of restitution. 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 Larry Miller. It was investigated by the FBI, the Missouri State Highway Patrol and the Eldon, Mo., Police Department.
Lebanon Sex Offender Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a registered sex offender in Lebanon, Mo., was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Kavin Dywayne Finley, 43, of Lebanon, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Finley is registered with the Missouri Sex Offender Registry due to his 1999 conviction for child molestation in Arizona.
Today’s indictment alleges that Finley received and distributed child pornography over the Internet from April 2 to May 12, 2015.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol, the Missouri State Technical Assistance Team and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Joplin Business Owner Indicted for $3 Million Fraud Scheme Related to 2011 Tornado Clean-UpRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., business owner has been indicted by a federal grand jury for a $3 million disaster fraud scheme in which his company received a government contract, designated for a service disabled veteran-owned small business that hired local workers, to clean up debris following the May 2011 tornado.
Raul R. Gonzales, 47, of Neosho, Mo., was charged in a 10-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, June 7, 2016.
Under the terms of a contract managed by the U.S. Army Corps of Engineers to remove tornado debris from public rights-of-way and residential property in the wake of the 2011 tornado, the prime contractor was required to be a service disabled veteran-owned small business. The contract also specified that at least 50 percent of the work must be done by employees residing in Jasper and Newton counties.
Gonzales owned and operated Intelligent Investments, Inc., in Joplin, which was registered with the Department of Veterans Affairs as a service disabled veteran-owned small business. Intelligent Investments was awarded a contract in June 2011 and received payments of approximately $3 million.
According to the federal indictment, a company outside the state of Missouri – identified in the indictment as Company A – recruited Intelligent Investments to bid on and obtain the contract as the primary contractor, because Company A did not qualify. The indictment alleges that Gonzales and Company A agreed that he would perform little, if any, work on the contract. Instead, Company A would perform virtually all the work on the contract using its own resources and subcontractors, which were not local. Gonzales and Company A allegedly agreed to split the net profits received from claims under the contract, with Company A to receive substantially more than half of the net profits.
The indictment charges Gonzales with one count of conspiracy to defraud the United States, three counts of making a false claim, three counts of disaster fraud and three counts of making and using a false document.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Army Criminal Investigation Command – Major Procurement Fraud Unit, the Defense Contract Audit Agency, the Defense Criminal Investigative Service, the Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Brookfield Man, Woman Indicted for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Brookfield, Mo., couple has been indicted by a federal grand jury today for their roles in a conspiracy to distribute methamphetamine.
Charleston B. Leach, 31, and Cecilia Lynn Spath, 31, both of Brookfield, were charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, June 7, 2016.
The federal indictment alleges that Leach and Spath conspired to distribute 500 grams or more of methamphetamine from March 1, 2014, to May 1, 2015. They are also charged with aiding and abetting each other to possess with the intent to distribute 50 grams of pure methamphetamine and to possess with the intent to distribute marijuana on May 1, 2015.
Leach is also charged with one count of using the mail to facilitate the distribution of methamphetamine and marijuana.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the U.S. Postal Inspection Service, the North Missouri Drug Task Force, the Kansas City, Mo., Police Department and the Northeast Missouri Drug Task Force.
Independence Man Indicted for Illegal Firearm After Shooting at Woman, ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm after a woman reported that he shot at her and her children.
Senecca T. Spencer, 40, of Independence, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Spencer, who has prior felony convictions, was in possession of a Jimenez Arms 9mm pistol and ammunition on May 25, 2016. The indictment replaces a federal criminal complaint that was filed against Spencer on May 26, 2016. Spencer remains in federal custody.
According to an affidavit filed in support or the original criminal complaint, police officers were called to an Independence residence on a report of a domestic violence disturbance and shots fired at the scene. When they arrived at the residence, the affidavit says, the victim told officers that she and Spencer had been arguing and the argument escalated. When he left the house, allegedly carrying the 9mm pistol, she and her children locked all the doors and windows to prevent his return.
The victim told police that as she and her children were standing in the kitchen area of the residence, Spencer pointed the handgun at her, from the “porch area” of the residence, through a window, and fired the handgun. Investigators later determined that a bullet had shattered the kitchen window, traveled through the house and penetrated an interior wall/trim area.
Spencer was stopped in his vehicle near the intersection of 43rd Street and Phelps and arrested. 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.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. According to the affidavit, Spencer has at least 11 felony convictions, including seven felony convictions for assault and violent crimes, and convictions related to breaking and entering and possession of controlled substances with the intent to distribute them.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being 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.
Adrian Man Indicted for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Adrian, Mo., man was indicted by a federal grand jury today no charges related to drug trafficking and illegally possessing firearms.
Jeffrey K. Fisher, 30, of Adrian, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Fisher possessed 50 grams or more of methamphetamine to distribute on Aug. 1, 2015. He is also charged with possessing marijuana to distribute and with making his residence available for the purpose of unlawfully distributing and/or using methamphetamine.
The indictment also charges Fisher will being an unlawful user of a controlled substance while in possession of firearms. Fisher allegedly was in possession of nine rifles, a shotgun and two pistols on Aug. 1, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bates County, Mo., Sheriff’s Department.
Former University Employee Pleads Guilty to $716,000 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former University of Missouri employee pleaded guilty in federal court today to embezzling more than $716,000 from the school over a nine-year period.
Carla Rathmann, 54, of Mount Vernon, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of mail fraud and one count of credit card fraud.
Rathmann admitted that she embezzled a total of $716,665, primarily by submitting fake and fraudulent invoices and bills to the University of Missouri. Rathman also admitted that she illegally used a university credit card for approximately $146,144 in personal expenses.
“The University of Missouri detected the embezzlement and worked closely with law enforcement to investigate,” Dickinson said. “The university’s cooperation was instrumental in determining the full scope of the fraud scheme.”
Rathman was hired by the University of Missouri as an administrative officer at the Southwest Research Center, located in Mount Vernon, in January 2000. Her responsibilities included receiving bills, paying bills, various accounting duties, payroll, scheduling meetings and organizing staff at the Southwest Research Center. According to today’s plea agreement, Rathmann was fired from her position in September 2015 after officials discovered that she had used her university credit card, also known as a “p-card,” to pay for personal expenses.
In 2005, Rathmann created and registered three shell companies with the Missouri Secretary of State’s Office. Rathmann admitted that these companies – R&R, R&R Argi and Garrett Farm and Oil – did not produce a single product or provide a service of any type. Either Rathmann or her husband were the owners and registered agents for these companies.
From Jan. 24, 2005, to June 18, 2014, Rathmann issued bills or invoices in the names of these shell companies to the University of Missouri for products or services ostensibly provided to the Southwest Research Center. In reality, none of these companies provided a single item or a service to the Southwest Research Center. The invoices or bills submitted by Rathmann to the University of Missouri for payment were entirely false and fraudulent.
On numerous occasions, Rathmann, in her capacity as an administrative employee for the University of Missouri at the Southwest Research Center, approved the fraudulent invoices and bills. After she approved the payments, the University of Missouri wrote checks to Rathmann’s fictitious companies, which were deposited into her bank account.
The University of Missouri paid Rathmann $570,521 for the products and services that in fact were never delivered or provided.
Shortly after she was hired, Rathmann was given a credit card to facilitate the purchasing of goods and services needed for the Southwest Research Center. Rathmann fraudulently used the credit card to make unauthorized personal purchases (i.e., her dog’s surgery, remodeling her home, dental expenses, propane for her home, gas for her vehicle and herbicide for her home).
The first unauthorized use of the credit card occurred on Feb. 19, 2002, when Rathmann’s credit card was used to pay Bolivar Insulation in the amount of $1,249. The last unauthorized use of the credit card was on Aug. 20, 2015, when Rathmann’s credit card was used to pay an invoice from Ozark Mountain Pest Control in the amount of $30. In between these purchases were numerous other personal purchases she made using the credit card that totaled approximately $146,144.
By pleading guilty today, Rathmann agreed to forfeit to the government a $716,665 money judgment, which represents the proceeds derived from the fraud scheme.
Under federal statutes, Rathmann 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 Patrick Carney. It was investigated by the FBI and the Missouri State Highway Patrol.
Jury Convicts Peculiar Man of Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Peculiar, Mo., man was convicted by a federal jury today of tax evasion.
Harold R. Stanley, 62, of Peculiar, was found guilty of one count of tax evasion and one count of endeavoring to obstruct and impede the due administration of the internal revenue laws.
Stanley, an electrical engineer, was hired by companies as a consultant and received $971,604 from self-employment from 2005 to 2009 as an independent contractor. Stanley failed to file any tax returns for 2005 and 2006. For tax years 2007 through 2009, Stanley filed substantially correct returns but left the tax line entry blank and failed to submit any payment.
The total tax loss for 2005 through 2009 is $259,900.
Stanley submitted fake money orders for payment to the Internal Revenue Service, returned documents to the Internal Revenue Service claiming that the tax assessments were satisfied because they were “Accepted for Value,” filled out payment vouchers with his name in all capital letters but didn’t submit payment and submitted a false criminal referral to IRS – Criminal Investigation.
Under federal statutes, Stanley is subject to a sentence of up to eight 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.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for less than half an hour before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Tuesday, May 31, 2016.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Mexican National Charged with Possessing 15 Kilograms of CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was charged in federal court today after law enforcement officers seized his suitcase containing more than 15 kilograms of cocaine from a Greyhound bus.
Jose Manual Gomez-Monzon, 21, of Sinoloa, Mexico, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s federal criminal complaint charges Gomez-Monzon with possessing cocaine with the intent to distribute.
According to an affidavit filed in support of the complaint, law enforcement officers noticed a suspicious suitcase in the passenger compartment of a Greyhound bus that originated in Los Angeles, Calif., and was stopped at the Greyhound Bus Station at 1101 Troost, Kansas City, Mo., on Tuesday, May 31, 2016. The suitcase had a strong order of a chemical smell, the affidavit says, and no identifiers or tags. When passengers re-loaded the bus, officers asked who the bag belonged to, the affidavit says, but none of the passengers claimed ownership.
Officers removed the suitcase and opened it. Beneath a thin layer of women’s clothing items, the affidavit says, they found 15 bundles of cocaine with a total weight of 15.69 kilograms (34.6 pounds).
According to the affidavit, Gomez-Monzon, who was traveling with a woman who appeared to match the clothing size that was located in the suitcase, had been questioned earlier by officers and had been acting visibly nervous. Officers questioned Gomez-Monzon and his girlfriend and asked to search the girlfriend’s duffel bag. She told the officer there was clothing missing from her bag, and identified the clothing found in the suitcase with the cocaine as her missing clothing. Gomez-Monzon and his girlfriend were placed under arrest. Gomez-Monzon told officers that he had traveled from Mexico to Los Angeles in order to pick up a suitcase and transport it to Philadelphia, Penn.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Former Independence, Missouri, Police Officer Sentenced to 48 Months in Prison for Violating Civil Rights of Minor in his CustodyRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Tammy Dickinson of the Western District of Missouri announced that former Independence, Missouri, Police Officer Timothy Runnels was sentenced to 4 years in prison for violating the constitutional rights of a minor who was in his custody.
As part of his guilty plea, Runnels admitted that while he was employed as an officer of the Independence Police Department, he deprived the minor of his civil rights by deliberately dropping the minor face first onto the ground while the minor was restrained and not posing a threat to Runnels or others. According to the court filings, Runnels also admitted that his actions resulted in bodily injury to the minor.
During a sentencing hearing before Senior U.S. District Court Judge Dean Whipple of the Western District of Missouri, the government provided evidence that Runnels deployed his taser into the minor’s chest during a traffic stop and then caused the electric current to run for approximately 20 seconds, four times longer than officers are trained to deploy a taser. Evidence at the hearing revealed that as a result of the tasing, the minor went into cardiac arrest and became unresponsive. Dash camera video of the incident depicts Runnels handcuffing the minor after the taser deployment and then picking him up. The video and other evidence presented at the sentencing demonstrates that Runnels then deliberately dropped the handcuffed victim face-first into the pavement. Although the minor suffered cardiac arrest and facial injuries, he survived the incident due to timely medical treatment by medical personnel at the scene and at the hospital.
Judge Whipple issued the sentence, which will be followed by two years of supervised release.
“The defendant abused his authority as a law enforcement officer by depriving a minor of his constitutional rights and causing bodily harm,” said Principal Deputy Assistant Attorney General Gupta. “While the majority of law enforcement safeguards our communities with fidelity, the department will continue to vigorously investigate and prosecute officers who violate their oath by using excessive force.”
“This former police officer was trained and entrusted to enforce the law impartially,” said U.S. Attorney Dickinson. “His use of excessive force violated both the public’s trust and his oath to uphold the law. Police officers are not above the law and will be held accountable when they violate the civil rights of the citizens they are sworn to protect and serve.”
This case was investigated by the FBI’s Kansas City Division and is being prosecuted by Trial Attorney Shan Patel of the Civil Rights Division’s Criminal Section and First Assistant U.S. Attorney David Ketchmark of the Western District of Missouri.
Houston, MO, Woman Sentenced for Sister's Murder-For-HireRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Houston, Mo., woman was sentenced in federal court today for hiring someone to murder her sister.
Leta Faye Douglas, 52, of Houston, was sentenced by U.S. District Judge M. Douglas Harpool to seven years and three months in federal prison without parole.
Douglas, who pleaded guilty on Jan. 4, 2016, admitted that she agreed to pay another person – who was actually an undercover law enforcement officer – $2,000 to murder her sister. Douglas must forfeit the $2,000 she paid the undercover officer to the government.
According to court documents, Douglas sent a letter to an individual in January 2015, asking for his help. This person, who lives in Nebraska, had not maintained contact with Douglas for about 18 years. When he called her in response to receiving the letter, Douglas told him that she wanted her sister killed. Douglas told him that her parents were in a home for the elderly and that her sister was in charge of their finances. He believed that Douglas wanted to have access to her parents' financial estate.
That individual contacted law enforcement authorities. An undercover employee of the Missouri State Highway Patrol contacted Douglas and made arrangements to meet in the Walmart parking lot in Houston on Feb. 9, 2015. The undercover, who was wearing an audio recording device, approached Douglas’s vehicle and got into the front passenger’s seat. During the initial conversation, she provided the undercover with a photograph of her sister and a hand-drawn map to her sister’s residence.
The entire conversation between Douglas and the undercover was recorded. Douglas told the undercover that her sister’s husband would also be home and that they had two dogs inside the house. She handed him an envelope that contained $2,000.
Douglas was arrested at her residence a few days later.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Missouri State Highway Patrol and the South Central Drug Task Force.
Waynesville Apartments Owner Pleads Guilty to $18.2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of apartment complexes in Pulaski County, Mo., pleaded guilty in federal court to an $18.2 million fraud scheme.
James J. Laughlin, 74, of Waynesville, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, May 26, 2016, to a federal information that charges him with making false statements and reports on a loan application.
Laughlin, one of the operators of 4-J Apartments, admitted that he provided false information to the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) in order to obtain an $18,219,400 loan in 2012 for the operation and maintenance of 232 apartments and complexes in Pulaski County.
Laughlin involved Richard Newman DeLong, 50, of Newburg, Mo., an employee of Brookshire Concrete, in the fraud scheme. Delong, who was fired by the company for his role in the scheme, worked with Laughlin to make it appear that Brookshire Concrete was renting apartments from 4-J. This would allow 4-J to artificially inflate its occupancy levels in order to qualify for the FHA loan.
Delong, while employed by Brookshire Concrete, issued numerous checks that were made payable to 4J Apartments. These checks contained the forged signature of the company’s owner.
Laughlin submitted rent roll documents to FHA and HUD that indicated Brookshire Concrete was renting 20 apartments from 4-J to house some of its workers. Laughlin admitted, however, that none of Brookshire’s employees ever lived in any of 4-J’s apartments. Laughlin repaid the monies received from Brookshire Concrete by issuing checks from 4-J to Brookshire Concrete, ostensibly for concrete work. These gave the appearance that rent was being paid by Brookshire Concrete while 4-J was paying for concrete work in return.
According to the plea agreement, Laughlin had been denied funding by HUD in 2010 and again in 2012 because the occupancy rates at 4-J’s apartments were below 95 percent. HUD noted that the loan would not be approved because there would be insufficient rental income to repay the loan, creating a high risk of default. By inflating occupancy rates with the fraudulent rental roll documents, it appeared that 4-J’s occupancy rate was 95.7 percent; HUD reversed itself and approved Laughlin’s request for funding. The actual occupancy rate was only approximately 86 percent – below the level HUD and FHA set as a condition for approving the loan.
DeLong pleaded guilty to his role in the fraud scheme and is scheduled to be sentenced on June 15, 2016.
Laughlin must forfeit to the government $18,219,400. Under federal statutes, Laughlin 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 Patrick Carney. It was investigated by the FBI and the Department of Housing and Urban Development, Office of Inspector General.
KC Man Sentenced to 14 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man whose computer had been seized in a separate and unrelated state investigation, has been sentenced in federal court for obtaining another computer and attempting to distribute child pornography over the Internet.
Justin K. Eaton, 33, of Kansas City-North, was sentenced by U.S. District Judge Roseann Ketchmark on Thursday, May 26, 2016, to 14 years in federal prison without parole.
On Nov. 23, 2015, Eaton pleaded guilty to attempting to distribute child pornography over the Internet. According to court documents, the file to which Eaton pleaded guilty to distributing was particularly violent in that it depicted an adult male attempting to engage in illicit sex with a toddler, who can be heard crying.
On Oct. 8, 2012, an FBI agent identified Eaton’s computer as sharing images of child pornography over a peer-to-peer file-sharing network. The agent downloaded three video files and five images of child pornography from Eaton’s computer.
Approximately six months earlier, in February 2012, law enforcement officers in Clay County, Mo., had seized Eaton’s computer in an unrelated state child pornography case. Eaton bought a new computer about a week later and continued to download and share child pornography, which resulted in the federal investigation and grand jury indictment.
Eaton was arrested on the state charges on Oct. 12, 2012, and was released on bond. On Oct. 26, 2012, the FBI executed a search warrant at Eaton’s residence and seized electronic media that contained more than 150 images of child pornography. Eaton must forfeit to the government a laptop computer, a computer hard drive and a micro SD card, all of which were used to commit the offense.
Eaton pleaded guilty to two counts of possessing child pornography in the Clay County case on Aug. 17, 2013, and was sentenced to eight years. Eaton spent 120 days in the Sexual Offender Assessment Unit in the Missouri Department of Corrections and was released to probation.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nixa Woman Pleads Guilty to $80 Million Fraud Scheme to Sell Counterfeit Cell Phone PartsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., woman pleaded guilty in federal court today to selling more than $80 million worth of counterfeit cell phone components over the Internet and at a Springfield, Mo., store.
Sherrie Householder, 59, of Nixa, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of mail fraud, one count of money laundering and one count of tax evasion.
By pleading guilty today, Householder admitted that she received more than $80 million from the sale of counterfeit items over approximately three years, from Dec. 3, 2012, to Jan. 14, 2016.
Householder managed and operated Flash Technology, LLC, also known as Flash Tech, a business that sold cell phone components (such as replacement screens, lithium batteries, weight scales, phone cases and internal circuitry) over the Internet and at a Springfield store. Householder represented that the cell phone components were manufactured by legitimate companies – including Apple, Samsung, LG, Microsoft, Android, Dell, Blackberry, ASUS, Acer, Kindle, HTC, Motorola, Nokia, Sony, ZTE and others. Although each part contained trademarks and markings that made it appear the legitimate holder of the trademark had manufactured the parts, and although Householder used the trademarks and logos of these companies on her Web sites, the components were actually counterfeit.
Wang “Frank” Lou, a Chinese citizen, owned Flash Tech, while Householder managed the company’s activities in the United States. Lou shipped the cell phone component parts to Householder. Nearly 5,000 international shipments were sent to Flash Tech from China.
Federal agents from Homeland Security Investigations (HSI) and Customs and Border Protection conducted numerous border inspections of these shipments. All of the items shipped from Lou to Householder and inspected by federal agents were determined to be counterfeit. At least nine separate shipments, each with multiple packages, were inspected and ultimately confiscated after it was determined that the shipments contained counterfeit cell phones and counterfeit component parts. Agents conferred with industry experts and determined that the total value of the counterfeit merchandise seized during their inspections totaled $359,539. After each shipment was seized, the agencies issued letters of notification to Householder at Flash Tech advising her that the items being shipped to her company were counterfeit and were seized by federal agents. Even though Householder received these written notifications, she still continued to sell the counterfeit items at her Springfield stores and over the Internet.
After the initial seizure of counterfeit items, Householder caused future shipments from Lou to be sent to different names and addresses, then re-routed delivery to Flash Tech, in an attempt to avoid the seizure of additional shipments.
On Feb. 2, 2016, search warrants were simultaneously executed at Householder’s Nixa residence and at the Flash Tech store in Springfield. At each location, thousands of cell phones, electronics and component parts were seized. After seizing these items, agents and company experts determined that all of the items were counterfeit. The total amount of items seized was worth approximately $5.5 million and filled two large moving trucks.
Householder also admitted that she failed to pay any taxes between 2013 and 2015 on her total salary of $642,109. Householder failed to report her total income of $114,362 for 2013, $255,259 for 2014 and $279,959 for 2015. As a result, Householder owes $151,838 in back taxes. In addition to the federal income taxes owed, Householder also owes the Missouri Department of Revenue $32,743 for her failure to pay state income taxes for 2013 through 2015.
Householder must forfeit to the government $556,938 seized from various PayPal, Amazon and bank accounts, numerous desktop and laptop computers, iPads, hard drives, computer and cell phone components and a money judgment of $8,866,069.
Under federal statutes, Householder is subject to a sentence of up to 35 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 Homeland Security Investigations and IRS-Criminal Investigation.
Two KC Men Indicted for Murder, Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were indicted by a federal grand jury today for committing a murder as part of a drug-trafficking conspiracy.
James P. Roberts, 24, and Marcell Shavers, 25, both of Kansas City, were charged in a two-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces an indictment returned on March 29, 2016.
Today’s indictment alleges that Roberts and Shavers conspired with each other to possess methamphetamine with the intent to distribute on Jan. 1, 2014. The indictment also alleges that Shavers, aided and abetted by Roberts, used a firearm to murder Jose Medellin in perpetration of the drug-trafficking conspiracy on that day.
The original indictment charged Roberts and Shavers with using a firearm during a drug-trafficking offense, which carries a penalty of five years to life in prison upon conviction. Today’s superseding indictment replaces that charge with one count of using a firearm during a drug-trafficking offense to commit murder, which carries a penalty of life in prison or death upon conviction.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Jeffrey Valenti and Joseph Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lee's Summit Woman Indicted for Additional Embezzlement Schemes, Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that additional charges have been filed against a Lee’s Summit, Mo., woman who was previously indicted for embezzling more than $300,000 from her employer.
Patricia Webb, 43, of Lee’s Summit, was charged in a 24-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces an indictment returned on March 31, 2016, and includes additional charges related to two more fraud schemes. Webb is in federal custody after having her bond revoked by the court for unrelated fraudulent conduct.
In addition to the scheme to embezzle approximately $302,183 from Black and Veatch, which was charged in the original indictment, today’s superseding indictment charges Webb with a scheme to embezzle $1.2 million from Garmin International, a previous employer, and a scheme to embezzle $7,385 from a healthcare benefits program for Garmin employees.
TriStar Embezzlement Scheme
According to today’s indictment, Webb stole the identity of another employee while she was working at Garmin in order to embezzle $7,385 from TriStar Benefit Administrators, the company which managed Garmin’s healthcare savings accounts.
Webb allegedly created a flexible spending account for another Garmin employee without his knowledge or consent. Webb allegedly submitted a request for reimbursement to TriStar on July 18, 2011. The request was for hospital treatment in the amount of $7,385, the indictment says, and the payment from TriStar was sent to Webb’s bank account.
Today’s indictment charges Webb with one count of wire fraud and one count of aggravated identity theft in relation to this embezzlement scheme.
Garmin Embezzlement Scheme
According to today’s indictment, Webb embezzled $1,224,410 million from Garmin while employed as a senior payroll specialist.
Webb was hired by Garmin on Feb. 28, 2011, and promoted to payroll team leader in August 2011. Webb allegedly caused Garmin to send 16 unauthorized payments to her own business bank account under the corporate name Beauty Within Me from Feb. 24, 2012, to May 30, 2014.
Today’s indictment charges Webb with 16 counts of wire fraud in relation to this embezzlement scheme.
Black and Veatch Embezzlement Scheme
According to today’s indictment, Webb embezzled $302,183 from Black and Veatch while employed as a global payroll manager. Webb was employed by Black and Veatch from January 2015 until March 4, 2016 and earned $90,000 per year.
The indictment alleges that Webb facilitated unauthorized wire transfers and Automated Clearing House transactions (fund transfers, such as direct deposits and business-to-business payments) from the company’s payroll account to her Beauty Within Me business bank account. To conceal her fraud, the indictment says, Webb manipulated the direct deposit information of Black and Veatch employees, who were either based overseas or deceased, to funnel company funds into her own bank account.
Webb allegedly embezzled approximately $302,183 from Black and Veatch in a series of six transfers that ranged from $8,588 to $92,862 over approximately seven months in 2015 and 2016.
During the scheme, according to court documents, Webb made $106,529 in withdrawals and expenditures at casinos; spent $8,986 on travel-related expenses (including airfare and hotels for trips to Bangkok, Thailand, Las Vegas, Nev., and Miami, Fla.; made $14,449 in payments to multiple higher education universities; and made $61,745 in ATM withdrawals.
On March 4, 2016, an accounts manager at Commerce Bank contacted Black and Veatch’s executive management regarding payroll deposits that seemed suspicious. On the same day, Webb was confronted about the suspicious transactions and was suspended without pay.
Today’s indictment charges Webb with six counts of wire fraud in relation to this embezzlement scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Former Federal Employee Pleads Guilty to Using Stolen Money Order Receipts in Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former federal employee pleaded guilty in federal court today to using stolen money order receipts in a fraud scheme to avoid paying his medical bills.
Byron G. Gorman, 51, of St. Joseph, Mo., pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a Sept. 10, 2015, federal indictment.
Gorman was employed as an information technology specialist for the U.S. Department of Agriculture's Office of Inspector General, assigned to the Heart of America Regional Computer Forensics Laboratory in Kansas City, Mo., where he was being trained to become a computer forensic examiner.
By pleading guilty today, Gorman admitted that he used stolen money order receipts – taken by Gorman as he participated in a criminal investigation – as fraudulent evidence in court, both to defend himself against a lawsuit against him by his creditors and in his own lawsuit against his creditors.
Gorman was a defendant in a civil collection lawsuit in Buchanan County, Mo., in which a judgment had been entered against him and a garnishment of his wages had been ordered to recover monies owed on medical bills incurred at the Heartland Regional Medical Center in St. Joseph. On Sept. 28, 2012, Gorman’s creditors filed a second civil collection lawsuit against him in Buchanan County to recover monies owed on additional unpaid medical bills.
On May 22, 2012, Gorman participated in the execution of a federal search warrant at the offices of a private business in Kansas City, Kan. Gorman was there to search for computer-related evidence. He found and took five blank U.S. Postal Service money order receipts belonging to the private business and used them to facilitate the scheme to defraud Heartland Regional Medical Center.
Gorman used the stolen money order receipts and other fraudulent documents created as evidence in his defense. Gorman claimed that he had submitted postal money orders to his creditors, but the payments had not posted. As evidence, he provided the five stolen money order receipts, which were filled out to make it appear that money orders had been made out to Heartland Regional Medical Center, as well as a number of forged letters displaying the names and purported signatures of postal employees.
Gorman also used the stolen money order receipts and other fraudulent documents he created as evidence in a lawsuit he caused to be filed against his creditors. Gorman placed the names and forged signatures of the actual persons onto letters purporting to be from the U.S. Postal Service and the U.S. Federal Trade Commission onto two letters and two certified mail receipts as part of his wire fraud scheme.
Under federal statutes, Gorman 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.
As an examiner in training, Gorman did not perform any computer forensic examinations unless under the supervision of a fully certified Heart of America Regional Computer Forensic Laboratory (HARCFL) examiner.
Upon learning of the allegations regarding Gorman, the Heart of America Regional Computer Forensic Laboratory did a complete and thorough review of any cases which Gorman may have assisted in the examination of computer forensic evidence. No inconsistencies, errors or issues were noted with any evidence. The Heart of America Regional Computer Forensic Laboratory is a fully accredited laboratory facility following a strict protocol for the examination of evidence and the training protocol for examiners in training.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI, the U.S. Postal Inspection Service and the U.S. Department of Agriculture, Office of Inspector General – Office of Compliance and Integrity.
Independence Man Sentenced for Stealing $247,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former financial comptroller of a North Kansas City, Mo., business was sentenced in federal court today for a wire fraud scheme in which he embezzled more than $247,000 from his employer over five years.
John S. Kruse, 48, of Independence, Mo., was sentenced by U.S. District Judge Dean Whipple to two years and three months in federal prison without parole. The court also ordered Kruse to pay $247,000 in restitution.
On Nov. 9, 2015, Kruse pleaded guilty to wire fraud. Kruse was employed as the financial comptroller of BCC Merchant Solutions, a North Kansas City firm that provides electronic payment systems, e-commerce systems, business capital and marketing services to other companies.
Kruse admitted that he engaged in a scheme to steal at least $247,508 from BCC Merchant Solutions from April 2010 until his resignation in July 2014. Kruse made at least 213 unauthorized wire transfers from his employer’s bank account into his personal bank account. Through his scheme, Kruse embezzled $5,776 in 2010; $36,989 in 2011; $71,868 in 2012; $76,225 in 2013; and $56,648 in 2014.
Kruse used the money to pay for extravagant trips for his family to Las Vegas, Nev., and to Disneyworld. He spent $50,934 at convenience stores and for gasoline; $41,197 on entertainment; $138,186 for groceries and general merchandise; $65,416 through PayPal; $49,105 for travel and leisure; $49,773 for miscellaneous; and $50,934 for cash.
As the financial comptroller, Kruse was in charge of paying out sales commissions and bank reconciliations, along with keeping records within QuickBooks. In the course of his job, Kruse was authorized to access BCC Merchant Solutions’ bank account. To hide his embezzlement, Kruse manipulated the QuickBooks records to falsely reflect that the money he transferred into his account was being used elsewhere. Kruse falsified who the deposits were made to, indicating they were payments made on sales commissions and bank reconciliations.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Secret Service and the North Kansas City, Mo., Police Department.
St. Joseph Man Indicted for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was indicted by a federal grand jury today for robbing UMB Bank.
Terry L. Hager, 48, of St. Joseph, was charged in a federal indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Hager stole $13,957 from UMB Bank, 1211 N. Belt Hwy., St. Joseph, on March 5, 2016.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
KC Man Sentenced to 15 Years for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, 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 several firearms.
Marcus McIntosh, 60, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole.
On Dec. 2, 2015, McIntosh was convicted at trial of his role in leading a conspiracy to distribute crack cocaine between April 1 and Aug. 8, 2014. McIntosh was also found guilty of distributing crack cocaine and being a felon in possession of several firearms.
McIntosh sold crack cocaine to undercover detectives and confidential informants on several occasions between May and August 2014. On Aug. 8, 2014, law enforcement officers executed a search warrant at a residence that McIntosh was using as a “trap house,” a place to store and sell crack cocaine. McIntosh was placed under arrest; an adult woman and a child were also inside the residence.
During their search of the residence, investigators found a safe under the bed in a bedroom that contained approximately 49.6 grams of crack cocaine, approximately 29.2 grams of powder cocaine and $1,820. In another bedroom, investigators found a loaded Ruger .22-caliber handgun on top of an entertainment center, a Remington 12-gauge shotgun located next to the entertainment center and a loaded PW Arms 9mm handgun between the mattresses on the bed.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McIntosh has prior felony convictions for possessing crack cocaine with the intent to distribute, distributing cocaine, possessing cocaine with intent to distribute, carrying a concealed weapon and robbery.
Two co-defendants, who are brothers, have pleaded guilty to participating in the conspiracy by distributing crack cocaine that was supplied to them by McIntosh. Tyrone Campbell, Jr., 30, of Raytown, was sentenced to eight years in federal prison. Tyronn Campbell, 25, of Kansas City, Mo., was sentenced to three years and 10 months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Adam Caine. It was investigated by the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Columbia Man Sentenced to 19 Years for Leading Heroin Trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man was among five co-defendants sentenced in federal court for leading a conspiracy to distribute heroin in which one person died of an overdose.
James Delarosa Borden, also known as “Jimmy White,” “Detroit,” and “D,” 41, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, May 17, 2016, to 19 years and seven months in federal prison without parole.
On Jan. 5, 2016, Borden pleaded guilty to participating in a conspiracy to distribute heroin and to distributing heroin.
Borden was the leader of the drug-trafficking conspiracy responsible for distributing more than a kilogram, and up to three kilograms, of heroin. According to court documents, information from cooperating sources indicated that Borden was regularly obtaining 100 grams of heroin from various sources. Borden admitted that he had been obtaining heroin from sources in Detroit, Mich., and St. Louis, Mo.
Borden also admitted that he supplied heroin to Aaron Boren, who died after ingesting the heroin supplied by Borden.
Borden, who has an extensive history of violent criminal behavior, was sentenced as a career offender. For example, while on bond for the 1998 armed robbery of a St. Louis jewelry store (committed while on parole for an earlier offense), Borden committed an armed robbery in Detroit. Borden carjacked a victim in Detroit and drove the victim’s car to a church, where he pulled a revolver and robbed individuals of the cash box containing monies raised during a fundraiser.
Borden was among five co-defendants who were sentenced on Tuesday, May 17, 2016. Borden’s cousin and co-defendant, James Delvico Borden, 39, of Columbia, was sentenced to eight years and one month in federal prison without parole. Co-defendant Javis Deonn Wideman, 38, of Columbia, was sentenced to five years in federal prison without parole. Co-defendants Matthew Alec Ell, 21, and his girlfriend, Angelic Melanie Polston, 21, both of Columbia, received probationary sentences.
By pleading guilty today, Ell admitted that he participated in a conspiracy to distribute 100 grams or more of heroin in Boone County, Mo., from July to October 2014.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the Jefferson City, Mo., Police Department and MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group).
Jefferson City Physician Pleads Guilty to Making False StatementsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., physician has pleaded guilty in federal court to making false statements in order to receive payments on health care claims.
Randall E. Meyer, 60, of Jefferson City, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays on Friday, May 13, 2016, to a federal information that charges him with making false statements related to health care matters.
Meyer, a physician and surgeon, is a partner at Central Missouri Cardiology, P.C., a cardiology practice group in Jefferson City. Under the terms of his plea agreement, Meyer must surrender his medical license two weeks prior to his sentencing hearing, which has not yet been scheduled.
This case involves Meyer’s treatment of 14 patients from Jan. 1 through Dec. 31, 2010. Meyer admitted that he claimed the percentage of the patients’ lesions and stenosis in their arteries was 70 percent or greater when, in fact, it was substantially less. Meyer used his misstatement of the significance of the lesions and stenosis to ensure the claims would be paid. He then submitted (or caused to be submitted) claims for payment for treatments or services to health care benefit programs.
The health care benefit programs would not have allowed, reimbursed, or paid those claims if the programs had known Meyer was inflating the percentage of patient lesion and stenosis.
The estimated loss amount for purposes of sentencing is more than $95,000 but less than $150,000. Under the terms of his plea agreement, Meyer must pay $76,369 in restitution, based on the estimated loss to the private insurers who reimbursed the claims. However, the government has not waived its right to pursue civil or administrative remedies with respect to the claims Meyer submitted (or caused to be submitted) to federal payors through the False Claims Act.
Explanation of Medical Terms
Stenosis is an abnormal narrowing in a blood vessel. A stent is a tube or other device placed in the body to create a passage between two hollow spaces and/or widen a narrow blood vessel. Coronary stents are placed during percutaneous coronary intervention (PCI), also known as an angioplasty. The most common use for coronary stents is in the coronary arteries, into which a bare-metal stent or drug-eluting stent is inserted. When a patient is determined to have stenosis to a degree that justifies intervention, and is undergoing a PCI, a physician must accurately document and maintain in the medical record his or her findings for the need to treat the patient, and any intervention and subsequent treatment.
This case is being prosecuted by Senior Litigation Consultant Gregg R. Coonrod and Assistant U.S. Attorney Cindi Woolery. It was investigated by Health and Human Services – Office of the Inspector General, the FBI, the U.S. Department of Labor – Employee Benefits Security Administration and the Missouri Attorney General’s Medicaid Fraud Control Unit.
Ashland Man Sentenced to 15 Years for MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ashland, Mo., man was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Jeremy Michael Traxler, 35, of Ashland, was sentenced by U.S. District Judge Brian C. Wimes to 15 years and eight months in federal prison without parole. Traxler was sentenced as a career offender.
On April 27, 2015, Traxler pleaded guilty to possessing methamphetamine with the intent to distribute.
According to court documents, law enforcement officers encountered Traxler while executing a search warrant at a residence in New Bloomfield, Mo. Traxler had brought a safe containing 49.5 grams of pure methamphetamine into the residence.
Traxler has been convicted of multiple drug possession and drug trafficking offenses. Traxler has also been convicted of multiple instances of driving while revoked (felony), receiving stolen property (felony), unlawful use of a weapon, tampering (felony), resisting arrest (felony) and driving while intoxicated. At no time over the past 13 years has Traxler been free from either pre-trial or probation supervision when not serving a prison sentence.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration and the MUSTANG Task Force.
Tulsa Physician Sentenced to 15 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tulsa, Okla., physician was sentenced in federal court today for using a minor to produce child pornography.
Shelby J. Coleman, 38, of Tulsa, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole. The court also sentenced Coleman to serve 10 years on supervised release following incarceration.
On Jan. 12, 2016, Coleman pleaded guilty to the sexual exploitation of a child. Coleman, a medical doctor and partner of Tulsa Women’s Health Center, has been in federal custody since his arrest in September 2013.
Coleman admitted that he communicated with a 16-year-old minor in Laclede County, Mo., identified as John Doe, via cell phone texts. At Coleman’s request, John Doe sent him multiple sexually explicit images of himself.
When John Doe’s father discovered the text messages, he contacted the Missouri State Highway Patrol. A state trooper assumed the identity of John Doe for the purpose of the investigation.
On Sept. 28, 2013, Coleman was apprehended by investigators after he traveled to Springfield, Mo., in order to meet John Doe for a sexual liaison.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force and the Missouri State Highway Patrol.
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."
Retired High School Teacher Sentenced for Attempting to Engage in Illicit Sex with a MinorRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a retired high school teacher living in Sedalia, Mo., was sentenced in federal court today for arranging to meet a woman and her 14-year-old daughter (actually an undercover law enforcement officer) for illicit sexual activity.
Paul Robert Cannon, 71, of Sedalia, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole. The court also sentenced Cannon to spend the rest of his life on supervised release following incarceration.
Cannon, an industrial arts teacher from 1976 to 1996, retired from the Gasconade County R2 School District. Cannon also served one term as a member of the Gasconade County R2 Board of Education after he retired from teaching.
On March 15, 2016, Cannon pleaded guilty to attempting to induce a minor to engage in illicit sexual activity. According to court documents, Cannon posted an advertisement on Craigslist on Jan. 18, 2016, entitled “Grandpa looking for a couple with kids.” The posting read, “Grandpa looking for a couple that would like to include their kids in sexual fun. White man, very discreet, very safe, retired teacher, and well endowed. Age and race are not an issue.”
On Jan. 21, 2016, a detective with the Boone County, Mo., Sheriff’s Department responded to the Craigslist advertisement, portraying himself as a single mother with a 14-year-old daughter. Over the next six days, the detective exchanged numerous e-mails with Cannon. In these exchanges, Cannon described various sex acts he intended to perform with the minor daughter. He also offered to have sex with both the mother and minor daughter together and said he was looking for “a continuing relationship.” The detective also exchanged numerous texts with Cannon in which Cannon described various sex acts he intended to perform with the minor daughter.
The undercover detective arranged to meet Cannon at a Columbia, Mo., restaurant this afternoon. Cannon offered to buy lunch for the mother and daughter before going to their residence for a sexual rendezvous. When Cannon arrived at the restaurant, he was redirected to another nearby restaurant, where he was arrested.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Boone County Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Sentenced to 25 Years for Armed Restaurant RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for the armed robbery of Pancho’s Mexican Food.
Jamane J. Smith, 31, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 25 years in federal prison without parole.
On Nov. 18, 2015, Smith pleaded guilty to one count of robbery and one count of using a firearm during a crime of violence. Smith admitted that he robbed Pancho’s Mexican Food, 3540 Main St., Kansas City, Mo., on Feb. 2, 2014. Smith admitted that he used and carried a handgun during the commission of the robbery.
According to court documents, Smith ordered a meal at Pancho’s and attempted to pay with a counterfeit $20 bill. When told the counterfeit bill would not be accepted, Smith pulled a gun hanging from his waist, pointed it at the Pancho’s employee and stated, “Give me the money.” The employee handed him $200 and Smith left the restaurant.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Joplin Man Pleads Guilty to $5.6 Million Cooking Oil SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to charges related to a scheme to sell more than $5.8 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Jeffery Lynn Fleming, 60, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to transporting stolen goods across state lines, money laundering and filing a false tax return.
Jeffery Fleming, who operated Fleming Recycling, LLC, in Carterville, Mo., sold approximately $5,831,567 worth of spent cooking oil that had been stolen from restaurants to Brooks Grease Service, a grease recycling business in Tulsa, Okla., between Nov. 1, 2010, and Sept. 30, 2011.
Spent cooking oil is the by-product of cooking oil that restaurants use for frying food. Restaurants had on-site collection tanks in which their spent cooking oil was stored. Many restaurants established contracts with various companies for the collection and removal of spent cooking oil. Brooks Grease Service sent a tanker truck to Fleming Recycling on an almost-daily basis, according to court documents. Each tanker truck held approximately 45,000 pounds of stolen spent cooking oil that was valued at approximately $20,000.
Jeffery Fleming was repeatedly told by undercover agents that the spent cooking oil he was purchasing, storing at his storage facility and selling to Brooks Grease Service was stolen. Undercover agents also negotiated a deal with Jeffery Fleming for the use of one of his trucks. Undercover agents told him they were using his truck to steal spent cooking oil; they charged him one-fourth the going price for the entire load of stolen spent cooking oil hauled by his employees in his collection truck.
Jeffery Fleming also admitted that he significantly underreported his gross receipts on his 2007 federal income tax return.
Fleming’s brother and co-defendant, Brian Dale Fleming, 49, of Mountain Grove, Mo., pleaded guilty on Nov. 19, 2015, to his role in the conspiracy to transport stolen property across state lines and to money laundering. Brian Fleming has also pleaded guilty to being a felon in possession of a firearm and ammunition. Brian Fleming admitted that he used his business, Tri-State Grease, to transport stolen spent cooking oil to Fleming Recycling. Brian Fleming admitted that he trained, encouraged and aided others to steal spent cooking oil from businesses in order to sell it to Fleming Recycling.
Under the terms of their plea agreements, Jeffery and Brian Fleming must forfeit to the government $595,429 that was seized by law enforcement officers, which was derived from the sale of stolen spent cooking oil.
Co-defendants Virgil Orin Bird, Jr., 53, and Neal Sawyer Robbins, 29, both of Joplin, were employees of Fleming Recycling. They each pleaded guilty to money laundering related to a payment for spent cooking oil they believed had been stolen and transported across state lines.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull, II and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.