Western District of Missouri
Press releases recorded for this federal judicial district.
Tarkio High School Student Charged with Possessing Machine GunsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Tarkio R-1 High School student who brought a loaded semi-automatic pistol to school earlier this month, causing the school to be locked down, has been charged in federal court with illegally possessing two machine guns that were found at his residence.
Michael T. Knoth, 19, of Tarkio, Mo., was charged with two counts of possessing a machine gun in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Wednesday, Feb. 24, 2016. Knoth, who has been in state custody since his arrest on Feb. 11, 2016, was transferred to federal custody today for his initial court appearance. Knoth remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, Knoth – who came to school on Feb. 11, 2016, wearing military-style clothing, boots and ballistic body armor – reportedly displayed a fully loaded magazine to another student that day. That student alerted a teacher, and the school contacted the Tarkio, Mo., Police Department. School officials then discovered a loaded Glock 9mm semi-automatic pistol in Knoth’s backpack, along with six loaded 9mm pistol magazines, three loaded .223- or .556-caliber magazines, a spring-assisted knife, a seatbelt cutter and a window punch.
Knoth was arrested and handcuffed. The school was placed on lockdown.
Investigators searched Knoth’s vehicle, which was parked in the school parking lot. They found two loaded 9mm magazines and 15 loaded .223/.556-caliber magazines.
Investigators also searched Knoth’s home. During a search of the southwest bedroom, investigators found a loaded machine gun in the closet, an AR-style .223/.556 pistol, containing no visible serial numbers or manufacturer stamp. They found a second machine gun, an UZI-style 9mm firearm (unknown manufacture), in the dresser. Investigators found a receipt from M&A Parts, Inc., which listed various firearm parts, including an M16 LPK part kit with auto sear. (An auto sear is a device used to turn a semi-automatic rifle into a fully automatic rifle.) Investigators also found numerous rounds of ammunition and numerous loaded .223/.556 and 9mm magazines throughout the residence.
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 Joseph M. Marquez. It was investigated by the Tarkio, Mo., Police Department, the Atchison County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man, Woman Charged with 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., couple were charged in federal court today for robbing the U.S. Bank inside the Price Chopper grocery store on 103rd Street in Kansas City, Mo., on Saturday afternoon.
Austin D. Bales, 23, and Sherry L. Ridout, 22, both of Kansas City-North, were charged with bank robbery in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s criminal complaint, Ridout approached a bank teller at U.S. Bank, 1030 W. 103rd St., at approximately 3:50 p.m. Saturday, Feb. 20, 2016. Ridout, talking on her cell phone, reached into her left jacket pocket and produced a note, which she placed on the teller counter. Ridout allegedly told the teller to give her all of the money from the top drawer. The note, according to the affidavit, said something along the lines of: “We have the bank surrounded, won’t hesitate to come back there, only clean bills, keep your hands visible, money is replaceable, Lifes aren’t.”
The teller gave Ridout $1,500, the affidavit says.
After bank surveillance photos of Ridout were broadcast by local media, the affidavit says, investigators received several phone calls that identified her as the robber and identified Bales as her boyfriend.
On Wednesday, Feb. 24, 2016, police officers conducted a traffic stop near the Walmart at 5261 N.E. Antioch Rd., Kansas City, Mo., of a van that matched the description of a vehicle identified in connection to the bank robbery. A witness had told investigators she saw Ridout being dropped off and later picked up by a van that fled the area after the robbery. When police officers stopped the van yesterday, it was being driven by Bales’s father with Bales and Ridout in the back seat.
Law enforcement officers searched the residence of Bales’s father, where Bales and Ridout were living in the basement, and found a Walmart bag containing apparent shredded U.S. currency and a Sucrets box containing a white substance that field tested positive for amphetamine.
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 Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Former Christian County Sheriff Sentenced for Stealing Public Money, Money LaunderingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former sheriff of Christian County, Mo., was sentenced in federal court today for embezzling county funds and for his role in laundering the proceeds of a political supporter’s investment fraud scheme.
Joseph “Joey” Edward Kyle, 54, of Ozark, Mo., was sentenced by U.S. District Judge Beth Phillips to one year and one day in federal prison. The court also ordered Kyle to pay $50,290 in restitution to Christian County and forfeit to the government a money judgment of $71,640, representing the proceeds he received from his criminal conduct. Kyle must disclose and surrender any and all property that was purchased with county funds, including firearms, ammunition, vehicles, equipment, preserved food (meals-ready-to-eat) and other supplies.
On May 20, 2015, Kyle pleaded guilty to one count of embezzling from Christian County and one count of participating in a money-laundering conspiracy. As required under the terms of his plea agreement, Kyle resigned his office as sheriff of Christian County, to which he was elected in 2008 and reelected in 2012.
Christian County Embezzlement
Kyle admitted that he embezzled $50,290 from Christian County. Kyle submitted 22 fraudulent invoices and purchase orders to the county for goods and services that were never provided between Jan. 1, 2011, and Oct. 14, 2014.
Kyle submitted those requisitions on behalf of EDI Plus, LLC, in Nixa, Mo. EDI was awarded a contract by the county to provide equipment – including firearms and ammunition – for the sheriff’s department from 2011 to 2014. Kyle received cash from EDI for his personal use then submitted fraudulent requisitions for goods and services purportedly supplied by EDI. In reality, no goods or services were provided; instead, these requisitions repaid EDI for the money Kyle personally received.
Pretrial Diversion Agreement: Stephen R. Eidson
Stephen R. Eidson, the owner of EDI, has not been charged in relation to Kyle’s theft of public funds but has entered into a pretrial diversion agreement with the U.S. Attorney’s Office.
Eidson acknowledged his role aiding and abetting Kyle in the fraud scheme in which Christian County taxpayers repaid EDI for the personal funds that he had provided to Kyle. In return, Eidson obtained the continued business of the Christian County Sheriff’s Department.
Under the terms of the pretrial diversion agreement, Eidson must surrender his federal firearms license no later than June 30, 2016. He may not become a federal firearms licensee at any point in the future and may not reapply for licensure. Eidson also must publicly apologize for the theft of public funds and complete 100 hours of community service within Christian County.
Prosecution shall be deferred for one year, provided Eidson abides by the conditions and the requirements of the pretrial diversion agreement. If Eidson violates the conditions of the agreement, the U.S. Attorney may initiate prosecution for the theft of public funds.
Money Laundering Conspiracy
Kyle also admitted that he received $21,350 from another person, identified as “Subject #2” in court documents, for his role in promoting an investment fraud scheme.
According to the plea agreement, Subject #2 owned and operated various companies and, from January 2008 to October 2014, engaged in an investment fraud scheme. Subject #2 solicited Kyle to assist him as a promoter of the scheme, to take advantage of the authority and prestige of Kyle’s position as county sheriff. Kyle referred potential investors, distributed promotional materials, served as a personal reference and recommended that victims invest money in Subject #2’s companies.
In order to persuade potential investors, Subject #2 falsely informed them that Kyle had personally invested funds and that Kyle had assembled an investment group, comprised of deputy sheriffs and others, to invest in Subject #2’s companies. In reality, Kyle did not invest his personal funds in Subject #2’s companies. Instead, Subject #2 gave Kyle 50,000 shares in one of his companies, which Subject #2 normally sold to investors at the rate of one dollar per share.
Kyle founded Five Rivers Management, LLC, purportedly as a law enforcement training company in 2011. He deposited the money he received from Subject #2 into the company’s bank account in order to conceal the source and nature of the payments, and to make them appear to be receipts from Kyle’s law enforcement training company. Subject #2 also made a $3,000 contribution, using victim investor funds, to Kyle’s political campaign on July 1, 2012.
Between June 2012 and January 2014, Subject #2 received investment funds totaling approximately $952,670. At the time he promoted the investment fraud scheme, Kyle states that he believed Subject #2’s companies were legitimately engaged in efforts to bring their products to market. However, Kyle admitted the United States could prove that he knew checks written to Five Rivers were the proceeds of some form of unlawful activity. Further, Kyle acknowledged that, at the very least, he deliberately closed his eyes to the fraud, which should have been obvious to him.
This case was prosecuted by Assistant U.S. Attorneys James J. Kelleher and Steven M. Mohlhenrich. It was investigated by the FBI, IRS-Criminal Investigation and the Missouri State Highway Patrol.
KC Man Sentenced to 30 Years in Prison for Heroin Conspiracy, Illegal FirearmRead 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 heroin and for illegally possessing a firearm and ammunition.
Robin M. Sims, also known as Robin Hood, 51, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole. Sims was sentenced as an armed career offender due to his prior felony convictions.
Sims and co-defendant Amy E. Jones, 52, of Kansas City, were found guilty on May 12, 2015, of participating in a conspiracy to distribute heroin between June 2012 and June 2013 and of aiding and abetting one another to distribute heroin. In addition, Sims was convicted of five counts of distributing heroin and one count of being a felon in possession of a firearm and ammunition. Jones was also convicted of being an unlawful drug user in possession of a firearm.
Jones was sentenced on Dec. 14, 2015, to five years in federal prison without parole.
Evidence introduced during the trial included a series of undercover and controlled purchases of heroin from Sims, often utilizing a confidential informant. Police officers conducted three searches at two separate residences shared by Sims and Jones and seized heroin and firearms.
On Aug. 30, 2012, during an investigation, Kansas City police officers searched a residence shared by Sims and Jones and found a Colt .32-caliber pistol under the mattress of a bed.
On Nov. 12, 2012, officers executed a search warrant at the residence shared by Sims and Jones and discovered heroin wrapped in a lottery ticket and a digital scale in the kitchen.
On June 20, 2013, officers executed a search warrant at the residence shared by Sims and Jones. When officers entered the residence, Sims placed a plastic baggie that contained what appeared to be heroin in his mouth and swallowed it. Officers discovered a loaded Davis Industries .22-caliber revolver under a bed.
Under federal statutes, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sims has a prior felony conviction for second degree murder, two prior felony convictions for drug trafficking, one prior felony conviction for possessing a controlled substance and a prior felony conviction for distributing a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Junior High School Teacher Indicted for Receiving Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Lebanon Junior High School teacher has been indicted by a federal grand jury for receiving child pornography over the Internet.
Evert Henry, 41, of Lebanon, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Monday, Feb. 23, 2016.
Henry was a teacher in the Lebanon R-3 School District at the junior high school during the time of the alleged offense. The indictment alleges that Henry received child pornography over the Internet from Jan. 1, 2011, to Jan. 13, 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 James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Lebanon, 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 Pleads Guilty to Armed Craigslist RobberiesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to commit a series of armed robberies against victims who were lured through an advertisement posted on Craigslist.
Debvon Buckner, 24, of Kansas City, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of participating in the 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.
By pleading guilty today, Buckner admitted that he participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. Buckner knew that co-conspirators robbed a Hispanic family on June 25, 2014, when the victims responded to a false advertisement for a Samsung television on Craigslist. After that robbery, Buckner agreed to be the primary point of contact with the victims, as conspirators continued using Craigslist to lure victims to be robbed. Buckner made initial contact with the victims, while his co-conspirators robbed them at gunpoint.
Buckner admitted that he participated in five additional armed robberies in which conspirators posted false advertisements to buy or sell items on Craigslist in order to entice their victims to meet so that conspirators could steal money and electronics.
July 16, 2014, Armed Robbery and Shooting
The final robbery occurred on the evening of July 16, 2014, when three victims met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was falsely listed for sale in a Craigslist advertisement. Buckner’s two co-conspirators were hiding, armed with firearms. Buckner accompanied two of the victims as they took a test drive in the vehicle and made a purchase offer. Buckner agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, the two co-conspirators appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, but Buckner’s conspirators shot the two adult victims 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. Conspirators fled from the area in the Hyundai Sonata, which was found shortly afterward behind an abandoned house. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
July 16, 2014, Armed Robbery #2
Earlier on the same day, on the afternoon of July 16, 2014, another victim had been contacted by Buckner, who said he wanted to purchase an XBOX One that the victim had listed 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, Buckner’s two co-conspirators 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 17, 2014, Arrest
The next day, Kansas City police detectives located Buckner in the area of East US 40 Highway and Sterling Avenue, Kansas City, Mo., and set up surveillance. When Buckner boarded a metro bus, police officers took him into custody. He possessed the phone that was used to contact several victims and wore the Samsung Galaxy watch that had been stolen from the victim of an earlier robbery.
In addition to the two robberies on July 16, 2014, Buckner admitted to his role in three earlier armed robberies.
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. One co-conspirator was in hiding and armed with a firearm while another co-conspirator waited in the getaway vehicle. When Buckner refused to make the exchange, the victim began walking back to his car. Buckner’s co-conspirator appeared, pointed a firearm at him and demanded money. The two men took the watch and the cash then fled.
June 30, 2014, Armed Robbery
One victim responded on June 30, 2014, to purchase a cell phone that was advertised on Craigslist. She decided not to purchase the phone and began to walk away, when Buckner’s co-conspirators pointed firearms 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 the alarm sounded, all three of the men ran.
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 three other persons, one of whom was a minor) at Ridge Pointe Apartments, Buckner showed her that he had cash to make the purchase. As soon as she took out the XBOX, he took it and ran. Buckner’s co-conspirators, 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.
Under federal statutes, Buckner is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Carl Junction Woman Pleads Guilty to Child Porn after Posting Images on Victim's FacebookRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., woman pleaded guilty in federal court today to possessing child pornography after she posted nude photos of a 15-year-old victim on the victim’s Facebook page.
Michelle Renee McCoy, 49, of Carl Junction, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing child pornography.
According to today’s plea agreement, McCoy took an iPhone 5C from the 15-year-old victim after an argument on March 28, 2014. The victim was contacted by her cousin on May 14, 2014, to let her know that there were nude pictures of her on her Facebook page. Multiple friends and family members called the victim regarding the nude photos they saw on her Facebook page. The images, which portrayed the victim in a variety of sexually explicit poses, had been taken when she was 14 or 15 and saved on her iPhone.
The victim was unable to log into her account as the password had been changed. The victim was able to shut down the account after resetting her password.
Carl Junction police officers contacted McCoy, who admitted she had the victim’s iPhone but refused to give the phone to law enforcement. Officers later received a search warrant for McCoy’s residence and seized an Apple MacBook Pro laptop, an Apple iPad and three Apple iPhones, including the victim’s phone.
Investigators learned that, two weeks before taking away the victim’s iPhone, McCoy had asked to see her phone so she could run an update on it. McCoy discovered the nude photos of the victim on the victim’s phone and sent them to her own iPhone 5S, where she saved them to her camera roll. Investigators found the child pornography images on McCoy’s iPhone and on McCoy’s MacBook Pro laptop. They also discovered that the victim’s phone had been backed up to McCoy’s laptop less than 15 minutes after police officers had been at McCoy’s residence and asked her for the phone.
McCoy’s daughter told law enforcement officers that McCoy had shown her the nude pictures of the victim that were on her cell phone. She said McCoy was showing the pictures at a family gathering. McCoy also told her daughter that she had the pictures on her laptop. After the photos were posted on Facebook, McCoy told her daughter that she had posted the pictures and changed the victim’s Facebook password so she would not be able to take them down.
Under federal statutes, McCoy is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
McCoy must forfeit to the government the Apple iPhone and Apple MacBook Pro laptop that were used to commit the offense.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Republic, Mo., Police Department, the Carl Junction, Mo., Police Department, and the Southwest Missouri Cybercrime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jefferson City Man Sentenced for Distributing HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for distributing heroin.
Brian Boykin, also known as “Denormus Okain” and “B,” 38, of Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to eight years and two months in federal prison without parole. Today’s sentence reflects an upward variance to a longer term of imprisonment than what is recommended under the federal sentencing guidelines, due to Boykin’s criminal history.
On July 27, 2015, Boykin pleaded guilty to two counts of distributing heroin and one count of possessing heroin with the intent to distribute.
While on parole from a 15-year sentence imposed in St. Louis City Circuit Court, Boykin twice sold heroin to a confidential police informant in November 2013 on or near the property of the Jefferson City Housing Authority. On Feb. 13, 2014, Boykin was arrested for the two sales to the confidential informant. At the time of his arrest in front of a JCHA property, Boykin was in possession of 12 grams of heroin and 1 gram of crack cocaine.
Boykin admitted that he distributed heroin to approximately 10 people in Jefferson City, and estimated that he had distributed between 10 and 20 grams of heroin each week since October 2013. Boykin would have netted $500 on 10 grams and $1,000 on 20 grams sold per week. Over a period of 18 weeks, Boykin would have netted $9,000 on 180 grams sold and $18,000 on 360 grams sold.
The government filed a motion for the court to sentence Boykin to a longer term of incarceration than the maximum 87 months recommended by the federal sentencing guidelines. This case represents Boykin’s sixth felony prosecution. In his five previous cases, he has been convicted of distribution of a controlled substance in 1998, attempted vehicle theft in 1999, distribution of crack cocaine near a school in 2000, possession of heroin and cocaine in 2007, and trafficking in crack cocaine in 2007. For all of this criminal activity, Boykin was sentenced by various state courts to an aggregate total of 40 years’ imprisonment. However, between a suspended imposition of sentence, multiple suspended execution of sentences, unsuccessful treatment programs, and failed drug courts, Boykin has served only a total of approximately five years and three months in state prison.
Boykin was incarcerated between June 2009 and May 2013. During that period, he completed Missouri’s long-term treatment program and was released to parole. He committed the federal drug-trafficking offenses within six months of his release.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Former IRS Employee Sentenced for $326,000 Fraud Scheme, Identity TheftRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Internal Revenue Service was sentenced in federal court today for using stolen identities in a scheme to receive $326,000 in fraudulent tax refunds.
Demetria Michele Brown, 39, of Birmingham, Ala., was sentenced by U.S. District Judge Brian C. Wimes to two years and six months in federal prison without parole. The court also ordered Brown to pay $326,000 in restitution to the state of Missouri and the IRS.
On June 1, 2015, Brown pleaded guilty to two counts of wire fraud and one count of aggravated identity theft. Brown admitted that she engaged in a scheme to submit hundreds of false and fraudulent state and federal income tax returns in order to generate refunds from 2008 to 2011.
Brown, formerly of Fairview Heights, Ill., worked at an IRS office in St. Louis, Mo., during the fraud scheme. While employed by the IRS, Brown unlawfully obtained the personally identifiable information of at least 120 persons. Brown had direct access to taxpayers’ personally identifiable information; however, rather than risk detection by using that information to commit her fraud, Brown obtained the identities of taxpayers in the Metro-East area of St. Louis and Birmingham through illicit sources.
Brown filed more than 120 fraudulent federal tax returns, resulting in a loss of approximately $211,000. Brown filed at least 236 fraudulent state tax returns, resulting in a loss of approximately $115,000, for an aggregate loss amount of approximately $326,000.
The scheme involved Brown obtaining personal identification information, including names, Social Security numbers, and dates of birth of other persons without their knowledge or consent. Brown completed U.S. individual income tax returns and Missouri state income tax returns for persons using the personal identification information she had obtained, adding other information which was false and fraudulent, including the address, place of employment, wages earned, taxes withheld and the fact that a refund was due.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri Department of Revenue – Compliance and Investigation Bureau and the Missouri Department of Revenue – Criminal Investigation Bureau.
Former Daycare Owner Pleads Guilty to Failing to Pay $891,000 in TaxesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of two daycare businesses in Parkville, Mo., and Platte City, Mo., pleaded guilty in federal court today to failing to pay $891,572 in payroll and other taxes to the Internal Revenue Service.
Lynn Jordan, 47, of Parkville, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges her with failing to pay over taxes to the IRS.
Jordan operated daycare businesses at two locations. The first daycare business, Growing Places, Inc., in Parkville, opened in 1999 and closed in 2011, after which Jordan opened South Platte Early Educational Center, LLC, using the same business location, clients, assets, employees, etc. Jordan closed this business in 2012. The second daycare business, Growing Places Platte City, Inc., in Platte City, opened in 2006 and closed in 2009, after which Jordan opened GPPC, Inc., using the same business location, clients, assets and employees, but with a different employer identification number. She did this because she was having problems paying business expenses, owed a lot of money to the IRS and needed a fresh start. Jordan closed this business in 2010.
By pleading guilty today, Jordan admitted the total federal criminal tax loss is $891,572.
From 2009 to 2012, Jordan withheld employment taxes from her employees’ paychecks totaling $211,704. But Jordan failed to pay over the trust fund taxes she collected from her employees to the IRS. Jordan also failed to pay over the employer’s portion of Social Security tax and Medicare tax from 2009 to 2012, totaling $123,906. Additionally, Jordan failed to pay over employment taxes from 2004 to 2008 totaling $506,588. She also failed to pay over federal unemployment taxes from 2004 to 2012 totaling $22,294. In addition to the payroll taxes, Jordan failed to file tax returns for three years from 2009 to 2012. The balance due on those tax returns totals $27,079.
During this time, Jordan spent a total of $320,738 on a large number of personal expenses from the business bank accounts. According to today’s plea agreement, Jordan withdrew more than $150,000 in cash and paid more than $50,000 on the mortgage of her personal residence from the business bank accounts. She made large ATM withdrawals and personal charges, including for lunches, salons, manicures, pedicures, travel, credit card and loan payments, checks and transfers to her personal bank accounts (in addition to her paychecks), retail stores, vehicle expenses, gas station purchases, clothing stores, medical and health expenses, restaurants, travel, expenses related to her children and credit score companies.
Under federal statutes, Jordan is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.
Arkansas Man Sentenced for Armed Robberies of Bank, 11 Other Businesses in Five StatesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bella Vista, Ark., man was sentenced in federal court today for a series of a dozen armed robberies at a Missouri bank and 11 other businesses in a five-state crime spree during the summer of 2013.
Timothy Patrick Hoyt, 45, of Bella Vista, was sentenced by U.S. District Judge Brian C. Wimes to eight years and one month in federal prison without parole.
On Sept. 9, 2015, Hoyt pleaded guilty to the charges contained in a federal indictment in the Western District of Missouri, as well as the charges contained in four separate cases in four different federal districts in Kansas, South Dakota, Nebraska and Oklahoma, all of which have been transferred to the Western District of Missouri.
Hoyt admitted that he used what appeared to be a handgun (but which later was identified as a .177-caliber pellet or BB gun that Hoyt shoplifted from a Walmart store near Blackwater, Mo.) to rob a bank in Missouri and 10 other businesses, including eight fast food restaurants, across five states between June 26 and Aug. 6, 2013.
Hoyt pleaded guilty to all four counts of the indictment filed in the Western District of Missouri. Hoyt stole $5,123 from Alliant Bank, 118 Main St., Blackwater, on June 26, 2013, with what appeared to be a handgun. Hoyt also used what appeared to be a handgun to rob the Subway restaurant at 330 N. Massey Blvd., Nixa, Mo., on July 12, 2013; the Subway restaurant at 1820 W. 32nd St., Joplin, Mo., on July 14, 2013; and the Sally Beauty Supply Store at 2007-C W. Foxwood Dr., Raymore, Mo., on Aug. 6, 2013.
Hoyt also pleaded guilty to using what appeared to be a handgun to rob the Subway restaurant at 715 N. G Street, Wellington, Kan., on July 17, 2013; the Domino’s Pizza Restaurant at 1108 S. Minnesota Ave., Sioux Falls, S. D., on July 19, 2013; the Subway restaurant at 1116 E. 10th St., Sioux Falls on July 20, 2013; the Godfather’s Pizza restaurant at 15234 W. Maple Rd., Omaha, Neb., on July 23, 2013; and the Arby’s restaurant at 6919 S. Lewis Ave., Tulsa, Okla., on July 27, 2013.
In addition to those robberies with which Hoyt has been charged, he also admitted that he used what appeared to be a handgun to rob the Papa Murphy’s Pizza restaurant at 302 W. 28th St., Sioux City, Iowa, on July 21, 2013; the Payless ShoeSource store at 7714 State Ave., Kansas City, Kan., on July 26, 2013; and the Papa Murphy’s Pizza restaurant at 3418 8th St. S.W., Altoona, Iowa, on Aug. 7, 2013.
Hoyt was arrested after robbing the Papa Murphy’s Pizza restaurant in Altoona.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by FBI; the Cooper County, Mo., Sheriff’s Department; the Altoona, Iowa, Police Department; the Nixa, Mo., Police Department; the Joplin, Mo., Police Department; the Raymore, Mo., Police Department; the Wellington, Kan., Police Department; the Sioux Falls, S.D., Police Department; the Sioux City, Iowa, Police Department; the Omaha, Neb., Police Department; the Kansas City, Kan., Police Department; and the Tulsa, Okla., Police Department.
Missouri Woman Charged with Making Twitter ThreatsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Safya Roe Yassin, 38, of Buffalo, Missouri, was charged today with communicating threats of violence over the Internet.
Yassin, a U.S. citizen, was charged in a federal criminal complaint that was filed under seal in the U.S. District Court in Springfield, Missouri, on Feb. 17, 2016. She remains in federal custody pending a detention hearing, which is scheduled for February 23, 2016 at 3:00 p.m.
An affidavit filed in support of the complaint alleges that Yassin maintained several social media accounts, including numerous Twitter accounts and a Facebook account, and used a Twitter account to post a threat against two FBI agents. On Aug. 24, 2015, Yassin allegedly posted the names, residences (city, state and ZIP code) and phone numbers of the two FBI agents under the words, “Wanted to kill.”
According to the affidavit, the threat originated with a Twitter account associated with ISIL. During the investigation, federal investigators identified multiple Twitter accounts allegedly used by Yassin, many of which were suspended by Twitter.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and Abram McGull II of the Western District of Missouri.
Two Columbia Men Sentenced for Distributing Crack CocaineRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Columbia, Mo., men were sentenced in federal court today in separate and unrelated cases related to distributing crack cocaine.
USA v. Jennings
Robert Jennings, 52, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole. The court also ordered Jennings to forfeit $4,626 to the government, which was the proceeds of illegal drug trafficking.
On Oct. 20, 2015, Jennings pleaded guilty to participating in a conspiracy to distribute crack cocaine and to being a felon in possession of a firearm. His co-defendant, Brittany Michelle Doxley, 29, of Columbia, also has pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Aug. 12, 2015, to five years in federal prison without parole.
Jennings admitted that he conspired with Doxley to distribute crack cocaine from their shared residence from March 21 to July 11, 2013. Jennings, while on probation for an earlier state drug-trafficking conviction, was involved in several drug transactions with a law enforcement informant. The informant told investigators that Jennings was distributing approximately 2.5 ounces of crack cocaine every couple of days. In violation of his parole, Jennings repeatedly traveled to New Orleans to acquire some of the crack cocaine involved in this case.
On July 11, 2013, law enforcement officers executed a search warrant at the residence shared by Jennings and Doxley. Officers seized 83.23 grams of crack cocaine, $4,616 and a Kel-Tec 9mm semi-automatic pistol that belonged to Jennings.
Under federal law, it is illegal for anyone who has been convicted of a felony to possess a firearm or ammunition. Jennings has a prior felony conviction for drug trafficking.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
USA v. Carter
Branon Jay Carter, also known as “Ball,” 31, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole.
On Sept. 8, 2015, Carter pleaded guilty to participating in a conspiracy to distribute crack cocaine.
From February through April 2012, Carter sold cocaine and crack cocaine to a Missouri State Highway Patrol trooper, working as an undercover officer and utilizing the assistance of a confidential informant, on several occasions. On April 16, 2012, for example, Carter sold the undercover officer 28.5 grams of crack cocaine for $1,250. Four buys of crack cocaine were made, which totaled 32.85 grams. Four purchases of cocaine powder were also made, which totaled 32.94 grams.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department and the Missouri State Highway Patrol.
Sedalia Man Sentenced for Distributing MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man was sentenced in federal court today for distributing methamphetamine.
Arnulfo Alejandro Lopez, 36, of Sedalia, was sentenced by U.S. District Judge Stephen R. Bough to seven years in federal prison without parole.
On Oct. 6, 2015, Lopez pleaded guilty to distributing methamphetamine.
On Sept. 26, 2014, Lopez sold one ounce of methamphetamine for $1,200 to a confidential informant who was working with an undercover Missouri State Highway Patrol trooper. The informant told law enforcement officers that Lopez, who was on probation for a state drug trafficking conviction, was selling methamphetamine on a regular basis. The informant called Lopez and asked to purchase methamphetamine for a good friend. The informant and the undercover officer then met Lopez at a hotel parking lot in Sedalia for the transaction.
The confidential informant told officers that, during a three-month period earlier that year, s/he had purchased 1 to 2 ounces of methamphetamine two or three times a week from Lopez. The informant also told investigators that s/he had seen two firearms in Lopez’s possession.
Lopez had two addresses in Sedalia – one residence where he lived with his wife and children, and another residence where he stored drugs and a firearm. The informant told officers that s/he had purchased 3.5 grams of methamphetamine from Lopez a week prior, and at that time had seen bricks of marijuana in the stash house.
Lopez was indicted by a federal grand jury on June 10, 2015.
On June 11, 2015, officers saw Lopez leave his stash house and travel to a hotel. They arrested him at the hotel on a federal arrest warrant. Inside Lopez’s car, officers found a .22-caliber revolver, approximately 5.4 pounds of marijuana, and $4,459. Officers executed a search warrant at the stash house and found more drugs; specifically, six bags containing methamphetamine in various amounts (10.2 grams, 26 grams, .25 grams, .8 grams, 1.4 grams and 3.5 grams). They also recovered a bag containing 11.2 grams of cocaine, two digital scales, a .22-caliber Marlin rifle, ammunition and $720.
Based on the amount of drugs seized, and the informant’s statements regarding the amounts of methamphetamine s/he had purchased, Lopez is accountable for at least 24 ounces of methamphetamine. An additional 4.2 ounces of methamphetamine can be included by converting the amount of cash seized to methamphetamine, so Lopez is responsible for a total of 28.2 ounces of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
New Haven Man Indicted for Attempting to Entice a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a New Haven, Mo., man has been indicted by a federal grand jury for attempting to entice a minor under the age of 17 (actually an undercover law enforcement officer) to engage in illicit sex.
Jason M. Strubberg, 26, of New Haven, was charged in an indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, Feb. 10, 2016. The federal indictment replaces a criminal complaint that was filed against Stubberg on Jan. 19, 2016, which charged him with the same offense.
According to an affidavit filed in support of the original criminal complaint, a detective with the Boone County, Mo., Sheriff’s Department posted an undercover online advertisement on Jan. 6, 2016, as part of an investigation to seek out potential sexual predators. Strubberg allegedly responded with several e-mails the same day. The decoy provided Strubberg with a phone number and told him she was looking for someone to help with her 14-year-old daughter’s respect issues.
Strubberg allegedly told the decoy he was a dominant person and agreed to help the decoy with her 14-year-old daughter as long as the decoy would sign a contract giving him permission to do so. Strubberg was sent two images of the decoy’s daughter, who he believed to be 14 years of age. Over the course of the next two days, the affidavit says, Strubberg described his plans for sexual conduct, including deviate sexual intercourse with the decoy’s daughter. Strubberg allegedly advised he would use ropes and other restraints if need be in order to prevent the decoy’s daughter from moving while he engaged in sexual conduct with her. Furthermore, the affidavit says, Strubberg sent a contract to the decoy by text message and asked her to print and sign the contract granting him permission to engage in sexual conduct with the decoy’s daughter.
After further e-mail correspondence, the affidavit says, Strubberg asked the decoy and her daughter to meet in person so that he could spend the day with them engaging in sexual conduct. On Jan. 8, 2016, Strubberg arrived at the meeting place and was arrested.
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 Anthony P. Gonzalez. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Crips Gang Member Who Murdered Five People Sentenced to 30 Years in PrisonRead 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 illegally possessing a controlled substance and firearms. Court documents and testimony from law enforcement officers during today’s sentencing hearing also connected him to the murders of five individuals, including a mother and her 3-year-old daughter.
Rashawn Long, 35, of Kansas City, was sentenced by U.S. District Judge Brian C. Wimes to 30 years in federal prison without parole, which was an upward departure from the federal sentencing guidelines.
Long was found guilty at trial on Aug. 21, 2014, of possessing Buphedrone (also known as bath salts, a controlled substance similar to methamphetamine) with the intent to distribute and of being a felon in possession of firearms. According to court documents and evidence presented at today’s sentencing hearing, Long carried out the murders of at least five individuals in a relatively short time frame – at least one in 2001 for which he was convicted in state court, and at least four during the summer of 2013, the year he was released from prison for his 2001 murder conviction.
Testimony at today’s hearing established Long’s longtime gang affiliation with the 51st Street Crips.
Long shot and killed Michael Birks on Feb. 1, 2001, in the middle of a public street in Kansas City, Mo. Related to that murder, Long attempted to kill Marlon Brown on March 5, 2001, in Overland Park, Kan. Though he survived, Brown was paralyzed from the incident.
According to court documents, Long was also responsible for the execution-style shooting murders of Myeisha J. Turner and her 3-year-old daughter on Aug. 23, 2013, in Kansas City, Mo., inside of the victims’ home.
Additionally, a federal agent testified today regarding Long’s shooting murder of Kevin “Flip” Jones on Sept. 20, 2013, in Kansas City, Mo., in the driveway of the victim’s home.
Long was also involved in the drive-by murder of Raymon K. Thomas with an automatic AK 47-style assault rifle on July 14, 2013, according to testimony from law enforcement at today’s hearing.
The investigation into this case began when Kansas City, Mo., police officers responded to a call about a suspicious person on Oct. 26, 2013. Officers contacted a homeowner, who stated that a man she didn’t know had been knocking on her door. She also told officers that he parked his 2013 Dodge Avenger in her back yard area and left. She had no idea who the vehicle belonged to or why it was parked in her back yard.
Officers noticed that the vehicle had a strong brake pad odor, which was consistent with it having been recently driven at a high rate of speed with the brakes repeatedly engaged. One of the officers requested a tow truck to come pick up the vehicle. When the resident went to move her own vehicle so that the tow truck could get into her back yard, she found a note from Long, but addressed to another person, thanking that person for letting him park the vehicle in her yard.
A few minutes later, Long came running up the hill, waving his arms and yelling at the officers. He told the officers that he knew the owner of the residence and that he parked vehicles there before. Long also told officers that he was trying to hide his car from his fiancé while he visited another woman who lived down the block, and did not want anyone to see him. Long, who had two active arrest warrants, was taken into custody.
When officers searched Long’s vehicle, they found a backpack that contained a stun gun, a can of pepper spray, a digital scale with residue, a digital video camera and a Coke can. Inside the Coke can was a false compartment that contained 5.67 grams of Buphedrone.
When officers reviewed the contents of the digital video camera, they found at least two images in which Long flashed a Glock semi-automatic handgun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Long has prior felony convictions for second degree murder, armed criminal action, unlawful use of a weapon and trafficking drugs.
This case was prosecuted by Assistant U.S. Attorneys Joseph M. Marquez and Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Dentist Pleads Guilty to Medicaid Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., dentist who formerly practiced at clinics in Springfield, Mo., and Mountain Grove, Mo., pleaded guilty in federal court today to his role in a conspiracy to collect more than $167,000 in fraudulent Medicaid payments for child patients of the clinics.
James R. Dye, 66, of Independence, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with health care fraud.
In his plea, Dye admitted to conspiring with two others, who operated clinics under the name All About Smiles and contracted with Dye to work at the All About Smiles dental clinics in Springfield and Mountain Grove. All About Smiles, which has now closed all of its clinics, also paid for the services of three other dentists; they are neither charged nor identified in court documents.
By pleading guilty today, Dye admitted that he and his co-conspirators purchased orthodontic appliances, known as Ortho-Tain, for approximately $50 each. The Ortho-Tain device, which Dye prescribed to child patients, was an orthodontic appliance designed to straighten teeth without braces. However, Dye and his co-conspirators billed each appliance to Medicaid as a speech aid prosthesis for approximately $695 (the maximum allowed).
Over a nearly five-year period, from Oct. 6, 2010, to Aug. 19, 2015, Dye and his co-conspirators submitted 241 claims, for which they received reimbursement of $675 to $695 per claim, for a total of $167,090. Dye was the performing provider on 218 claims totaling $151,105. The other dentists were responsible for the remaining amounts.
The Ortho-Tain orthodontic appliance is not a speech aid prosthesis, according to today’s plea agreement, and therefore should have been pre-certified by Medicaid and billed using a different orthodontic code. (A speech aid prosthesis was a maxillofacial prosthetic used to replace a missing part of a patient’s palate, or hole in the roof of the mouth, such as with a patient having a cleft palate. Medicaid did not require providers to obtain prior authorization for speech aid prostheses provided to eligible beneficiaries.)
Dye knew his patients did not qualify for and thus had not received prior authorization for orthodontic treatment, so he knew the Ortho-Tain products were not being billed and paid as orthodontic devices. Had officials administering Medicaid known the conspirators submitted claims for payment for orthodontic appliances that were represented to be speech aid prostheses, Medicaid would not have paid the conspirators’ claims.
Dye admitted that he and his co-conspirators knew Medicaid did not cover orthodontic services unless the Medicaid program’s requirements were met and they received pre-certification, which required review by a dentist/orthodontist employed by Medicaid. For that reason, the conspirators decided to bill the Ortho-Tain appliances as speech aid prostheses in order to bypass the pre-certification requirement.
The vast majority of the orthodontic appliances that Dye and co-conspirators billed as speech aid prostheses were Ortho-Tain orthodontic appliances, but they also billed other orthodontic appliances, such as retainers, as speech aid prostheses.
Under federal statutes, Dye is subject to a sentence of up to 10 years in federal prison without parole. Dye must forfeit $167,090, which was derived from the proceeds of the health care fraud scheme, to the government. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Steven M. Mohlhenrich and Cindi Woolery. It was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General, the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office and IRS-Criminal Investigation.
Longtime Saline County Sheriff Pleads Guilty to Stealing $79,000 in Public FundsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former Saline County, Mo., Sheriff pleaded guilty in federal court today to stealing nearly $79,000 in public funds by taking checks – issued by the state to reimburse the county for prisoner expenses – for his own personal use.
Wallace Newman George, Jr., 70, of Corder, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to an information that charges him with one count of stealing from an organization that receives federal funds.
George was appointed as acting sheriff for Saline County in November 1979 and elected to office the following month. He held that office for 36 years, purportedly the longest-serving sheriff in the history of the state until his resignation on Monday, Feb. 8, 2016. George was required to resign from office as a condition of today’s plea agreement.
George assigned sheriff’s deputies to transport prisoners extradited or voluntarily returned from outside Missouri to Saline County. He then submitted claims to the state to be reimbursed for the expenses incurred. The state issued 34 reimbursement checks for prisoner extradition/transportation between Jan. 28, 2010, and June 30, 2015. Those checks totaled approximately $97,083, of which approximately 75 percent, or $71,994, was for mileage reimbursement and the remainder for meals and other expenses.
By pleading guilty today, George admitted that he stole $78,911 from those state reimbursements, which primarily represents the mileage reimbursement portion of every state reimbursement check for prisoner extradition/transportation that the county received (with only one exception) from Jan. 28, 2010, to June 30, 2015.
George opened a personal checking account at Wood & Huston Bank in Marshall. At various times, George cashed the state reimbursement checks at Wood & Huston Bank. Sometimes he deposited the state reimbursement checks into his personal account, and sometimes he deposited portions of the proceeds into his personal account and kept a portion for himself. Between Jan. 28, 2010, and June 30, 2015, George cashed, partially deposited, or deposited approximately 34 extradition reimbursement checks into his personal bank account, with an aggregate value of approximately $97,083.
George admitted today that, as a result of his scheme, he obtained $6,832 prior to 2010, $8,075 in 2010, $8,665 in 2011, $6,319 in 2012, $11,970 in 2013, $25,530 in 2014, and $11,517 during 2015.
Although George admitted to stealing funds over a period of more than five years, he specifically pleaded guilty today to one count of stealing $9,592 in taxpayer funds between July 1, 2013, and June 30, 2014.
George paid $51,162 in restitution to Saline County on Friday, Feb. 5, 2016. He paid $27,749 in restitution to the state today. Under the terms of today’s plea agreement, the government will recommend a sentence of no more than one year and one day imprisonment. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI and IRS-Criminal Investigation.
Public Corruption Hotline
The FBI has established a toll-free public corruption hotline, 1-855-KCPCTIP, and email [email protected]. Details regarding the various types of public corruption investigated by the FBI can be found online: http://www.fbi.gov/about-us/investigate/corruption.
Weston Couple, Two Others Indicted for $2.25 Million Internet Steroids DistributionRead the Press Release
schweidler_indictment.pdf (100.03 KB)KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Weston, Mo., couple and two men from New Hampshire and Maryland have been indicted by a federal grand jury for their roles in a $2.25 million conspiracy to sell anabolic steroids over the Internet.
Aaron Vincent Schweidler, 31, and Nicole R. Lyne, 26, both of Smithfield, N.C., formerly of Weston; Michael G. Peters, 27, of Pelham, N.H.; and Samuel C. Miller IV, 29, of Annapolis, Md., were charged in a nine-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 2, 2016. That indictment was unsealed and made public today upon the arrests of Lyne and Schweidler in Smithfield and of Peters in Boston, Mass. Miller remains a fugitive from justice.
The federal indictment alleges that Lyne, Schweidler, Peters and Miller participated in a conspiracy to manufacture and distribute anabolic steroids, a conspiracy to commit money laundering and a conspiracy to commit debit card fraud. The four co-defendants are also charged with three counts of debit card fraud and three counts of aggravated identity theft.
The indictment alleges the conspiracy to manufacture and distribute anabolic steroids began on Dec. 30, 2011. Conspirators allegedly operated an Internet-based company, Power Trip, which sold various anabolic steroids to customers throughout the United States. Their customers, according to the indictment, included athletes and minors.
According to the indictment, Lyne and Schweidler frequently utilized the U.S. Postal Service station at 6304 N.W. Barry Road in Kansas City, Mo., to ship packages to their customers. Some of the packages listed a return address for “Hype Electronics & Game Super Store,” the indictment says, but actually contained vials marked with a Power Trip label that contained anabolic steroids.
Conspirators allegedly used stolen identities (including names, Social Security numbers and birth dates, which they either purchased or stole from victims themselves) to produce or obtain debit cards, such as Green Dot MoneyPak, MyVanilla, ReloadIT, NetSpend ReloadIT and BlackHawk. They required their customers to send payments to these cards in order to conceal and disguise the proceeds of the illegal transactions.
Conspirators also allegedly transferred over $188,000 outside the United States to China, via MoneyGram and Western Union, to purchase the raw materials and other supplies to manufacture anabolic steroids.
The indictment also contains a forfeiture allegation, which would require the co-defendants to forfeit to the government any property derived from the proceeds of the alleged illegal drug trafficking, including a money judgment of at least $2.25 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 Jess E. Michaelsen. It was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.
Kentucky Man Pleads Guilty to Kidnapping ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Danville, Ken., man who carjacked a vehicle in Kansas City, Mo., and forced its owner to accompany him as he drove across the state, pleaded guilty in federal court today.
Robert C. Caldwell, 26, of Danville, pleaded guilty before U.S. District Judge Beth Phillips to participating in a kidnapping conspiracy, one count of kidnapping, one count of carjacking, one count of using a firearm during a crime of violence and one count of being a felon in possession of a firearm.
Caldwell and an unindicted co-conspirator (who is considered a juvenile in the federal system but has been charged as an adult in state court) lay in wait outside the home of a 67-year-old Kansas City, Mo., man at about 5:30 a.m. on Jan. 22, 2015. They abducted the victim at gunpoint as he was leaving his home. He was forced to hand over his keys to his van, his wallet and cash. The victim was forced into his van, a 1998 Chevrolet CK 1500. He was beaten by Caldwell and his accomplice and struck in the head with the handgun, a Cobra .380-caliber semi-automatic pistol.
The victim told law enforcement officers that he was driven around to multiple ATMs, but he was covered with a blanket most of the time and was unable to see the locations where the carjackers attempted to use his debit card. He couldn’t remember his PIN number so they were unable to get cash, which made them angry. They repeatedly threatened his life and that of his wife. The kidnappers pretended to be on the phone with an accomplice who was holding his wife hostage; at one point after another failed ATM attempt, they informed him they had killed his wife, which was false.
According to court documents, they continued to drive and stopped at a drive-through restaurant, where one of the men sat next to the victim and shoved the barrel of the gun into his mouth, breaking his teeth, and told him that he would kill him if he moved. After getting food, they tied his hands together with a boot strap and had him lying in the floor with a blanket over his face so he couldn’t see. They continued driving and made several stops for purchases with the victim’s credit and debit cards.
Law enforcement authorities, who had been contacted by the victim’s wife, were tracking the use of the victim’s credit and debit cards as they were used or attempted to be used along I-70 eastbound. Investigators obtained surveillance photos and video from some of the locations.
When they arrived at a rest stop, according to court documents, one of the carjackers told the other to watch the victim while the carjacker slept. The victim managed to untie his hands and retrieve a homemade 45-pound weight from under the seat of the van. He struck both of the carjackers in the head (causing a gash above the eye of one of them) and made an attempt to escape, but was unsuccessful. He was then beaten heavily by both men.
They began driving again, and the victim pretended to be knocked out. The driver of the van was having trouble maneuvering the large van while holding the gun, so he sat the gun on the floorboard so he could use both hands to steer the vehicle. The victim lunged for the handgun and pointed it at the two carjackers as he demanded they pull over. When the vehicle pulled over, the driver made a move towards the victim, who pulled the trigger of the loaded gun, but it failed to fire. The victim quickly racked the slide to chamber a round, but both men had fled from the vehicle with the keys.
The victim also ran from the vehicle. As he ran down the street in Jennings, Mo., he turned and saw the two carjackers had returned to the vehicle and were slowly driving in his direction. The victim hid between several houses as he watched them drive away in his van. He then contacted the police.
The stolen van was recovered on Jan. 23, 2015, in Nelson County, Ken., after it was involved in an accident and the kidnappers fled. Caldwell was arrested in Kentucky on Jan. 27, 2015, following a pursuit by officers with the Kentucky State Police and the Lincoln County, Ken., Sheriff’s Department.
Under federal statutes, Caldwell is subject to a sentence of up to 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 is scheduled for June 30, 2016.
This case is being prosecuted by U.S. Attorney Tammy Dickinson and First Assistant U.S. Attorney David M. Ketchmark. It was investigated by the FBI and the Kansas City, Mo., Police Department.
11 Defendants Indicted for $1.2 Million Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 11 defendants have been indicted by a federal grand jury for their roles in a $1.2 million conspiracy to distribute Oxycodone that they obtained by using forged and fraudulent prescriptions.
Robert G. Joy, also known as “Bear,” 33, Gary D. Dickinson, also known as “James DeJong,” 49, Nicholas Destefano, 37, Katherine E. Beaven, 22, Douglas R. Parker, 56, Michelle C. Newton, 45, Felicita A. San Miguel, also known as “Cassandra Jasso,” “Susan Hernandez,” and “Sarah Buckner,” 37, Jermaine C. Brooks, 28, and Timothy D. Kroenke, 26, all of Kansas City, Mo.; Christopher J. Neale, 25, of Harrisonville, Mo.; and Thomas Poindexter, 41, of Olathe, Kan., were charged in a 27-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 2, 2016. That indictment was unsealed and made public today upon the arrests and initial court appearances of Joy, Destefano, Beaven, Parker, Neale and Kroenke.
The federal indictment alleges that all 11 co-defendants participated in a conspiracy to distribute Oxycodone that began on June 22, 2013.
All of the co-defendants are also charged with participating in a conspiracy to unlawfully use another person’s identification to facilitate a drug-trafficking crime. According to the indictment, conspirators obtained the means of identification of health care providers (including their names and DEA registration numbers, which are assigned by the DEA to allow them to write prescriptions for controlled substances). Conspirators allegedly used that identification and the prescription paper to prepare false prescriptions for controlled substances, including Oxycodone. They took the false prescriptions to pharmacies in Kansas City, Drexel, Riverside, Independence, Lee’s Summit, Blue Springs, Kearney, Butler, Odessa, Higginsville and Nevada, Mo. After they obtained the Oxycodone or other controlled substances, the indictment says, they distributed them to others.
In addition to the two conspiracies, Dickinson is charged with five counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge, one count of possessing methamphetamine with the intent to distribute and one count of possessing cocaine, oxycodone and methamphetamine with the intent to distribute.
Dickinson and San Miguel are charged together in two counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. Dickinson, Beaven and San Miguel are charged together in one count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. Brooks and San Miguel are charged together in one count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. San Miguel is also charged in a fifth count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Kroenke is also charged with five counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Neale is also charged with two counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Destefano is also charged with one count of possessing a firearm (a Smith and Wesson 9mm pistol) while being an unlawful user of a controlled substance and one count of possessing Oxycodone and methamphetamine with the intent to distribute.
Poindexter is also charged with one count of possessing Oxycodone, cocaine and methamphetamine with the intent to distribute.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses, including a money judgment of $1.2 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 Jess E. Michaelson. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol, and the police departments of Riverside, Blue Springs, Independence, Kearney, Odessa, Nevada, Higginsville, Drexel Lee’s Summit and Butler.
Williamsburg Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Williamsburg, Mo., man was sentenced in federal court today for illegally possessing a firearm.
William Hayward Council, 58, of Williamsburg, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole. Council was sentenced as an armed career criminal due to his prior felony convictions.
On Sept. 1, 2015, Council pleaded guilty to being a felon in possession of a firearm. Council admitted that he was in possession of a sawed-off shotgun on Aug. 23, 2013. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Council has two prior felony convictions for unlawful use of a weapon and three prior felony convictions for distribution of a controlled substance. Council has been convicted of driving while intoxicated on 10 different occasions.
On Aug. 23, 2013, two individuals reported to law enforcement that Council jumped out of his truck and pointed a sawed-off shotgun at them on a rural roadway in Callaway County, Mo. Callaway County sheriff’s deputies went to Council’s residence that day. Deputies knocked on the door to Council’s camper (where he resided) and he opened the door. Deputies instructed Council to step outside the trailer, and informed him they were going to arrest him; however, he stepped back into the camper. Fearing that Council could access the gun, deputies stepped into the camper and grabbed Council, who resisted the deputies’ attempts to arrest him.
After obtaining a search warrant, officers found a New England 12-gauge shotgun, with a barrel length of less than 12 inches, on a bed inside the camper.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Callaway County, Mo., Sheriff’s Department.
Second St. Joseph Business Owner Pleads Guilty to Solar Company's $1.4 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a second owner of a solar energy installation company in St. Joseph, Mo., pleaded guilty in federal court today to his role in a fraud scheme that totaled nearly $1.4 million in rebates through state and federal programs.
Trevor Dryden, 36, of St. Joseph, waived his right to a grand jury and pleaded guilty before U.S. District Judge Beth Phillips to a four-count information that charges him with one count of participating in a conspiracy to fraudulently obtain state and federal solar rebates and with four counts of making false statements related to state and federal solar rebate programs.
Dryden was an owner of US Solar in St. Joseph, which sold and installed solar-powered panel systems to businesses and home owners in northwest Missouri. In a separate but related case, US Solar co-owner Richard Schonemann, 38, of St. Joseph, pleaded guilty on Sept. 2, 2015, to his role in the conspiracy and to one count of making false statements.
By pleading guilty today, Dryden admitted that he was involved in three separate fraud schemes: first, a fraud related to KCP&L state rebates; second, a fraud related to the federal rebate program; and third, a fraud related to annual updates for the federal program. The total loss from the fraudulent schemes, determined by the government, is $1,396,956, although the total loss acknowledged by Dryden is $993,506.
KCP&L State Rebate Program
From July 23, 2011, to Dec. 31, 2013, US Solar obtained fraudulent rebates from KCP&L by overstating the number of solar panels installed at approximately 27 homes or businesses so that a larger rebate would be paid to KCP&L customers, who signed the rebates over to US Solar.
KCP&L administered the state’s Solar Photovoltaic Rebate Program, which was created in 2008 by the state of Missouri and funded by a tax on power customers. The rebate allowed for a payment of $2 per watt, not to exceed $50,000, to customers that installed solar powered panel systems on their homes or businesses. US Solar was one of the larger solar powered panel system installation companies that utilized this rebate program through KCP&L. To utilize the state rebate program, US Solar submitted applications and schematic drawings on behalf of their customers via email to KCP&L. Once the application process was completed, funds were disbursed to US Solar by checks mailed from KCP&L.
As a result of this fraud scheme, US Solar was paid a total of $464,080 more in rebates than the company was entitled to receive.
Dryden was, at a minimum, involved in the fraudulent rebate payments related to his father’s home and his personal home. Dryden pleaded guilty today to two counts of making false statements related to these rebate payments.
One of the fraudulent rebate payments related to the St. Joseph residence of Dryden’s father. Fraudulent paperwork was submitted requesting payment for 75 extra panels not installed, resulting in a rebate overpayment of $35,250. Another fraudulent rebate payment under this program was related to Dryden’s personal home. Fraudulent paperwork was submitted to KCP&L requesting payment for 54 extra panels not installed, resulting in a rebate overpayment of $25,380.
During the investigation of the state rebate scheme, the FBI uncovered unexplained payments from the federal government to US Solar that led to the discovery of a second fraudulent scheme that was part of the conspiracy.
American Recovery and Reinvestment Act of 2009
US Solar also obtained fraudulent federal rebates authorized by the American Recovery and Reinvestment Act of 2009. Under the federal program, the government reimbursed 30 percent of the cost of the installation of a solar-powered panel system leased to the property owner. US Solar received federal funds under this program from August 2011 to September 2013, because Dryden and US Solar certified they installed systems and leased those systems to the property owners. The certification was false because the systems were owned by customers rather than leased.
US Solar submitted forged lease contracts in order to receive the federal rebates. Dryden created false paperwork and computer entries using US Solar customer information. The conspiracy involved the use of false paperwork and computer entries, including lease agreements, certification that US Solar retained ownership of the solar powered panel systems, detailed cost breakdowns on each system and usage reports.
US Solar received 34 payments from the federal government, totaling $932,876. US Solar was not eligible to receive any of the $932,876 paid under the federal program.
Annual Updates
In order to participate in the federal rebate program, US Solar was required to certify that the installed systems were still running and report the systems’ output each year after installation. Dryden provided updates showing kilowatt usage on each property to the federal government in 2012 and 2013.
During the course of the conspiracy, Dryden and Schonemann, received payments from US Solar that were described as profit distributions. A significant source for those profit distributions were funds received by US Solar from the federal rebate program.
Under the terms of today’s plea agreement, the government will recommend a maximum sentence of five years in federal prison without parole. Dryden must pay between $60,630 to $464,080 in restitution to KCP&L for the state rebate fraud, as determined by the court, and no more than $932,876 in restitution for the federal rebate fraud (less any amounts paid by Schonemann), as determined by the court. A sentencing hearing will be held at 11 a.m. on June 16, 2016.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
KC Man Sentenced to 15 Years for Child PornRead 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 possessing child pornography while he was under court-ordered supervision for a prior conviction for receiving child pornography.
John T. Beyers, 46, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Today’s sentence includes 10 years for possessing child pornography and a consecutive five years for the revocation of his supervised release, which he was serving at the time of the offense for a prior child pornography conviction.
On Feb. 27, 2007, Beyers pleaded guilty in the U.S. District Court for the Southern District of Florida to receiving child pornography and was sentenced to seven years and four months in federal prison. He was released to a halfway house in Kansas City in May 2012. One of the conditions of Beyers’ supervised release was that Beyers could obtain only one computer, and that computer had to have monitoring software installed for supervision of his Internet activity by the probation officer. Other conditions included that Beyers could not obtain any type of pornography, including adult pornography, and Beyers could not violate any state or federal laws.
The U.S. Probation Office conducted a search of Beyers’s apartment on May 17, 2013, and found three unauthorized and unmonitored computers, a thumb drive and an external hard drive. A probation officer also found a receipt for a $1,000 wire transfer. When asked about it, Beyers said a Russian national was extorting $5,000 from him to keep Beyers’s illicit Internet activities from being reported to U.S. authorities.
Investigators found more than 100 images of child pornography and several movies of child pornography on the computers, the thumb drive and the external hard drive. Internet history indicates that Beyers did the bulk of his viewing of child pornography in the cloud, which minimized the available record of his child pornography activity.
This case was prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by U.S. Probation Office 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."
Jefferson City Man Sentenced for MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Cody Dean Williams, 49, of Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to 13 years and four months in federal prison without parole.
On Sept. 17, 2015, Williams pleaded guilty to possessing methamphetamine with the intent to distribute. Williams was sentenced as a career offender due to his prior felony convictions.
Williams was charged after having sold approximately 12.4 grams of methamphetamine to informants and undercover officers. Williams was arrested on March 5, 2013, when he was found to be driving on an expired license. An inventory search of his car revealed that he was carrying four bags of methamphetamine, a bag of marijuana, a bag with 11 hydrocodone pills and a bag with methamphetamine residue, which weighed approximately 8.5 grams. Williams was charged in Cole County, Mo., with felony possession of a controlled substance, among other felonies. He was released on bond.
An Eldon, Mo., police officer – acting on information that a suspected drug dealer was traveling towards Eldon – saw Williams’s truck stopped on the side of the road near the intersection of Hwy. Y and Hwy 52 on June 26, 2014. An officer searched the truck and found six syringes and a set of digital scales that field-tested positive for methamphetamine. Williams also had a small plastic bag containing marijuana in his pocket. During another search of the truck, law enforcement officers found seven grams of methamphetamine inside a hidden compartment in the dash.
Williams admitted that he had been distributing methamphetamine throughout mid-Missouri for several months. Williams stated that he sold approximately a pound each week, and purchased each pound for around $13,000. He made around $300 profit for each ounce sold. According to court documents, Williams is responsible for the distribution of approximately 8.32 kilograms of methamphetamine.
On July 18, 2014, officers were informed that there was an active arrest warrant for Williams. When officers attempted to stop him, Williams attempted to elude them by speeding, running stop signs and driving in the grass. During their pursuit, officers observed Williams throw items out of the car which the officers thought were controlled substances. The interior of Williams’s car was found to have methamphetamine residue and some residue of smoked marijuana. A later search of the chase route did not produce the baggies that officers believed were thrown from the car.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Drug Enforcement Administration, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group), the Mid-Missouri Multi-Jurisdictional Drug Task Force and the Eldon, Mo., Police Department.
Jefferson City Man Sentenced for Distributing, Possessing Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for possessing and distributing child pornography over the Internet.
Dominic J. Veit, 40, Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to eight years and nine months in federal prison without parole.
On April 6, 2015, Veit pleaded guilty to distributing child pornography and to possessing child pornography.
An FBI agent in New York, working on the national Innocent Images investigation in January 2011, identified Veit’s computer as using a peer-to-peer file-sharing network to distribute child pornography. The agent downloaded 31 images of child pornography from Veit’s computer.
On March 3, 2011, a federal search warrant was executed at Veit’s residence. Veit was questioned by law enforcement officers and admitted that he used the file-sharing program to download child pornography over the Internet. Veit had 30 to 40 friends on his network, most of whom had images of child pornography they shared with him in exchange for gaining access to the child pornography files on Veit’s computer.
Investigators discovered thousands of images and four videos of child pornography, including four images of bestiality which depicted bondage, on Veit’s computer.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. 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."
Former Jefferson City Bank Officer Sentenced for Stealing $410,000Read the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., woman was sentenced in federal court today for embezzling $410,000 from the bank where she was employed.
Katherine Nicholle Brown, 29, of Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to 15 months in federal prison without parole. The court also ordered Brown to pay $410,000 in restitution. Brown voluntary surrendered to begin serving her sentence on Oct. 1, 2015, and remains in federal custody.
Brown was previously employed as the head teller at Hawthorn Bank in Jefferson City. On Sept. 15, 2015, Brown pleaded guilty to the misappropriation of funds by a bank officer. Brown admitted that she embezzled $410,000 from December 2012 to Sept. 19, 2014, by taking money from the bank vault for her personal use. According to court documents, Brown used the money she embezzled to buy various vehicles, make home improvements and upgrade her wedding rings.
Brown was employed at Hawthorn Bank from April 9, 2007, through Sept. 30, 2014. Brown became head teller and, on Jan. 26, 2010, she became responsible for managing the vault at the main branch of the bank. She was also responsible for ordering money from the Federal Reserve Bank. Additionally, if any of the bank’s branches in Jefferson City, Columbia or California needed money for their branch, they would contact Brown and she would ship the funds to them. Brown was also responsible for daily and monthly audits of the vault.
Brown admitted that she began taking money from the vault when her husband had shoulder surgery in 2012 and could not work. She took the money in small amounts, and would place it in her pockets. Brown then plugged in certain amounts in the vault book to cause the vault book total to match the vault balance in the bank’s computer accounting system. Brown also admitted that, when the bank underwent an internal audit in December 2012, she made false entries into the computer system to conceal the fact that the vault did not match the computer system.
On Sept. 19, 2014, just prior to taking maternity leave, Brown prepared and shipped five bags of cash of varying denominations to the Federal Reserve Bank. She prepared and labeled the bags, which were bar-coded and tamper proof. She reported that the total amount of cash shipped to the Federal Reserve Board was $844,000; however, when the Federal Reserve Board received and counted the money, they found it to be only $434,000.
The Federal Reserve Board reported the shortage to the bank, which conducted an audit of the vault. The audit revealed that certain entries made in the vault book reflecting cash amounts sent to Columbia, Mo., and California, Mo., bank branches were $200,000 higher than the branches had actually ordered. As a result, the vault did not contain as much cash as had been reported on the bank’s computer accounting system. Auditors concluded that Brown had to report to the Federal Reserve Board that $844,000 had been shipped so that it would balance to the bank’s accounting system.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI.
Retired High School Teacher Charged with 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 in Sedalia, Mo., was charged in federal court today with 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 charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo., with attempting to induce a minor to engage in illicit sexual activity. Cannon was arrested today and remains in federal custody pending an initial court appearance on Monday, Feb. 1, 2016.
According to an affidavit filed in support of today’s federal criminal complaint, 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 affidavit says, the detective exchanged numerous e-mails with Cannon. In these exchanges, Cannon allegedly described various sex acts he intended to perform with the minor daughter. He also allegedly 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, the affidavit says, 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, the affidavit says, 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.
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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI and the Boone County Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Woman Pleads Guilty to $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 a Kansas City, Mo., woman pleaded guilty in federal court today to her role in a $235,000 arson and insurance fraud conspiracy.
Tina L. Shonk, 35, of Kansas City, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of participating in a conspiracy to commit arson and wire fraud, and to one count of mail fraud.
By pleading guilty today, 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, burned the house with the help of co-conspirators, and then made false claims on the insured property resulting in a total loss to insurance companies of $235,464.
Co-defendant Roy Thieman, 31, of Kansas City, pleaded guilty on Sept. 2, 2015, to his role in the conspiracy.
In January 2014 Shonk obtained renter’s insurance in the amount of $60,000, 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, Thieman and other 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, Thieman and other 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 made false claims to the insurance company as to the value of her property, that her property was in the house at the time of the fire, and also that she had no knowledge of, or involvement in, the fire. The insurance company paid Shonk $57,364; she paid Thieman $2,500 and another 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, a property managed by one of her co-conspirators. The co-conspirators discussed repeating 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.”
Under federal statutes, Shonk is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Former Director Pleads Guilty to Stealing from Domestic Violence ShelterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of a domestic violence shelter in Lebanon, Mo., has pleaded guilty in federal court to embezzling more than $30,800 from the shelter.
Mary Young, 64, of Estes Park, Colo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Jan. 28, 2016, to a federal information that charges her with credit card fraud.
Young was hired on Aug. 1, 2008, as the executive director of Creating Opportunities for Personal Empowerment (COPE), a domestic violence shelter located in Lebanon. Young resigned on June 10, 2014, and the fraud was detected following her resignation.
Young was given two credit cards, both issued to COPE, to facilitate the purchasing of goods and services needed to operate the shelter and to serve their clients. Young admitted that she fraudulently used both credit cards to make unauthorized personal purchases (i.e., gas for a vehicle, restaurant bills, clothing, travel, liquor and groceries). Young’s fraudulent purchases began on Sept. 16, 2008, shortly after being hired, and ended on May 19, 2014, shortly before she resigned.
Young admitted that she spent more than $25,000 for numerous personal purchases using one of the credit cards, and more than $5,800 using the second credit card.
Under federal statutes, Young is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI.
Duenweg Sex Offender Charged with Online Child Sex ShowsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a registered sex offender in Duenweg, Mo., has been charged in federal court with paying to watch online sex shows with children in the Philippines.
Paul L. Sipeer, 65, of Duenweg, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Wednesday, Jan. 27, 2016. The complaint charges Sipeer with receiving child pornography over the Internet. Sipeer had his initial court appearance today and remains in federal custody pending a detention hearing on Tuesday, Feb. 2, 2016.
Sipeer is a registered sex offender with a 1992 conviction for sexual abuse in the first degree involving the physical harm of a 7-year-old child.
According to an affidavit filed in support of the federal criminal complaint, Homeland Security Investigations (HSI) agents learned that Sipeer was conducting online money transfers between $10 and $20 several times a month during the summer of 2015 to individuals in the Philippines.
Money transfers, conducted through Western Union and MoneyGram, are often used to send funds to pay for sexual performances by children in the Philippines. In prior investigations conducted by HSI, small amounts of money, typically between $5 and $100, are often sent to individuals in the Philippines. In return, the recipients would have young children perform sexual acts on webcams for the senders. Often the senders would send additional payments for continued and/or repeat performances.
Upon further investigation, the affidavit says, agents learned that Sipeer had making money transfers to various individuals in the Philippines since January 2013, in amounts ranging up to $480.
On Jan. 26, 2016, law enforcement officers contacted Sipeer at his residence. According to the affidavit, Sipeer told the officers he sent money to the Philippines to pay for “sex shows.” Sipeer said he has sent approximately $1,200 to the Philippines in total.
Sipeer consented to a search of his residence, including his computer. Officers located images of child pornography during a preview of Sipeer’s computer.
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 James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Columbia Man Pleads Guilty to Renting Room to Use HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to renting the motel room where a 16-year-old female died of a heroin overdose.
Jon Patrick Washington, also known as “Doom,” 29, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to maintaining a drug-involved premise. Washington has been in federal custody since his arrest in 2014.
Washington admitted that he rented a room at the Providence Inn and Suites Motel, 1718 Providence Road in Columbia (now closed), for the purpose of using heroin from April 1 to April 3, 2014.
Columbia police officers responded to a suspected heroin overdose death at Washington’s motel room on April 3, 2014. The victim was a 16-year-old female. Based on information from a confidential informant, Washington was located later the same day and brought in for questioning by law enforcement. He admitted that he had injected the juvenile victim with heroin at about 8:30 p.m.
Washington told law enforcement officers that the juvenile was nodding off from a prior heroin injection, and that the juvenile and another individual (who Washington claimed supplied the heroin to the juvenile) kept asking him to help shoot the juvenile up again. Washington said the needle was already filled with heroin prior to him injecting the juvenile. Washington told officers that he found a vein on the juvenile on his second attempt.
Washington admitted that another individual and the juvenile victim gave him the money to rent the motel room. Washington had previously been renting another room at the motel, but moved into the new room on April 1. Washington admitted that he knew the room was being used by the juvenile to use heroin.
Under the terms of today’s plea agreement, which still must be accepted by the court, Washington will be sentenced to five years in federal prison without parole and is subject to a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration and the Missouri State Highway Patrol.
Raytown Man Charged with Distributing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Raytown, Mo., man has been charged with distributing child pornography over the Internet.
Cody Lee Davidson, 18, of Raytown, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Jan. 26, 2016. Davidson was arrested yesterday and will have his initial court appearance today.
According to an affidavit filed in support of the federal criminal complaint, Davidson took pornographic photos of a 7-year-old child victim, identified as Jane Doe, and posted those images on a Web site. Davidson also took a video of the child victim, the affidavit says, which federal agents located on his cell phone.
Davidson also took photos of an 8-year-old child victim, identified as Jane Doe 2, and sent those images to another individual via Kik Messenger.
Investigators have found more than 100 images and videos of child pornography on Davidson’s cell phone and camera, the affidavit says, and vast majority of the images and videos of child pornography depict victims from infants to 10 years old. Three videos, according to the affidavit, depict a female child engaged in sexually explicit conduct with an adult male.
The investigation began when federal agents in Boston, Mass., discovered six images of child pornography being distributed over the Internet on Aug. 7, 2015, during an undercover operation. Earlier this month, agents discovered new images from the same Web site, and learned that these images allegedly had been uploaded to another Web site by Davidson. On Tuesday, Jan. 26, 2016, federal agents and Raytown, Mo., police officers executed a search warrant at Davidson’s residence.
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 David Luna. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Bank Branch Manager Pleads Guilty to Embezzlement, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former branch manager of a Mountain Grove, Mo., bank pleaded guilty in federal court today to embezzling approximately $140,000 from the bank and failing to pay taxes on that income.
Diana L. Emery, 47, of Mount Grove, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of making a false entry in banking documents and one count of filing a false federal income tax return.
Emery was employed by First Home Savings Bank (FHSB) for approximately 15 years, first as a bookkeeper and eventually as branch manager at FHSB in Mountain Grove.
By pleading guilty today, Emery admitted that she used her position to make unauthorized payments to herself from bank funds from 2008 to 2012. Emery secretly took money from the bank vault and concealed her theft by making false entries in FHSB’s books, reports and the electronic journal detail report. Emery embezzled at least $139,999 from FHSB, which she deposited into her personal checking accounts.
When Emery filed her federal income tax returns, she excluded her embezzlement income and thus underreported her income by $205,325 (of which at least $139,999 was embezzled from FHSB; the rest came from unidentified sources). This underreported income, along with additional unreported deposits, resulted in a total tax due and owing from 2008 through 2012 of $53,155.
Under the terms of today’s plea agreement, Emery will be held accountable for her entire tax loss – which consists of the $53,155 tax due and owed for the tax years 2008 through 2012, plus any fees, penalties and restitution owed to the Internal Revenue Service and/or FHSB. The total amount of restitution owed to FHSB is $148,851 (which includes the embezzled amount plus expenses incurred by the bank as a result of her theft).
Under federal statutes, Emery is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1,250,000 and an order of restitution. 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 Abram McGull II. It was investigated by IRS-Criminal Investigation and the FBI.
Sedalia Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Shane Scott Longie, 39, of Sedalia, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Sept. 1, 2015, Longie pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possess methamphetamine with the intent to distribute in Pettis County, Mo., from August 2012 to March 2013. A confidential informant provided information that Longie was selling multiple ounces of methamphetamine in Sedalia each week. An undercover law enforcement officer purchased a total of 56 grams of methamphetamine from Longie on two occasions in November 2012 and March 2013.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Sedalia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Columbia Man Sentenced for Six Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for robbing six Columbia banks, using a bicycle as his getaway vehicle.
Shaun Christopher Becker, 43, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to four years and nine months in federal prison without parole. The court also ordered Becker to pay $4,490 in restitution.
Becker, who pleaded guilty on Aug. 31, 2015, admitted that he robbed six Columbia banks between Nov. 20, 2014, and Jan. 3, 2015, using a bicycle for transportation and as a getaway vehicle.
On Nov. 20, 2014, Becker stole $3,890 from Missouri Bank II, 2500 Rangeline St. in Columbia. Becker slid a demand note across a teller counter that said, “Put all the bills in the bag, except for $1’s, be quiet, keep smiling, and nobody needs to get hurt. Thank you.” The teller complied and took the note with her to the drive through teller window, where she activated the alarm. She then closed the bag and returned it to Becker, but retained the demand note. Becker fled the bank on a dark-colored bicycle, possibly a mountain bike, and eluded capture.
On Nov. 28, 2014, Becker stole approximately $6,000 from First State Community Bank, 3200 Golden Bear Drive in Columbia. When Becker walked to the teller counter, the teller requested he remove his sunglasses. Becker ignored the teller and pulled a black bank bag from underneath his sweatshirt and laid it on the counter. He retrieved a demand note from within the bag and gave it to the teller. The note essentially stated, “Put all your large bills in the bag, keep smiling and no one will get hurt.” The teller complied and then returned both the bag and note to Becker, who calmly walked out of the bank and fled on a bicycle.
On Dec. 9, 2014, Becker stole $1,810 from UMB Bank, 1516 Chapel Hill Road in Columbia. Becker arrived at the bank riding a blue mountain bike; he entered the bank and walked to the teller counter. Upon reaching the counter, Becker, who was noticeably out of breath, slid a black bank bag and demand note across the counter toward the teller. The note was poorly written in pencil using lower case letters on the torn corner of a white piece of paper. The teller was only able to read the words “big bills” before Becker pulled the note back to himself. The teller concluded she was being robbed and gave Becker her stack of $100 bills. The teller did not include the $50 bills because she assumed they were too small, but relinquished them after Becker gave her a frustrated look. Becker collected the money from the counter, placed it into the black bag, calmly walked out of the bank, then got onto his bicycle and rode away. During the ensuing investigation, a police K-9 officer located the bicycle and a black shoulder bag which contained Becker’s clothing. The items were concealed in a wooded area behind a business located approximately a half-mile from the bank near the MKT Trail. Becker eluded capture.
On Dec. 15, 2014, Becker stole $600 from Boone County National Bank, 1916 Paris Road in Columbia. Becker arrived at the bank riding a bicycle. He laid his bike in the grass at the end of the walkway and walked into the bank. Becker immediately approached the teller counter, retrieving a black bank bag from underneath his sweatshirt as he approached. Once at the teller counter, Becker removed a demand note from the bank bag and presented it to the teller. She complied and gave the defendant $600 cash. Becker, who kept the demand note, then walked out of the bank, stuffing the bag into his pants as he departed. Once outside, he retrieved his bicycle and rode away.
On Dec. 22, 2014, Becker stole $2,000 from Regions Bank, 2114 Paris Road in Columbia. Becker arrived at the bank riding a bicycle, which he parked outside the bank. Becker walked into the bank and immediately approached the teller counter, which was protected by a bandit barrier. Becker produced a bag and a demand note and slid them under the barrier to the teller. The note read, “Put the 100’s, 50’s, and 20’s from the top drawer in the bag.” The teller complied. Becker asked for his note back then walked out of the bank, stuffing the bag into his pants as he departed. Once outside, Becker retrieved his bicycle and rode away. Fresh bicycle tracks were located on a nearby bicycle trail, but Becker eluded capture. Surveillance from a neighboring business revealed that Becker had cased the area on his bicycle prior to the robbery.
On Jan. 3, 2015, Becker stole $1,394 from Boone County National Bank, 205 S. Keene St. in Columbia. Becker immediately approached the teller counter, where he retrieved a black folder from inside his open shirt. The teller recognized Becker as the serial bank robber operating in Columbia, and immediately activated her silent panic alarm. Becker placed the folder on the teller counter where he untied and opened the folder, then laid a demand note on the teller counter. The note essentially read, “Put 50’s and 100’s in the bag, no funny business, and no dye packs or bait money, keep smiling.” The teller complied; as she stepped away to fill the folder, Becker crumpled and ate the demand note. After obtaining the money, Becker left the bank, stuffed the folder into his shirt and fled east, out of view of bank staff. Investigation revealed that Becker escaped the area on a bicycle and fled east along a paved bicycle path near the bank. Approximately three-tenths of a mile from the bank, Becker ditched his bicycle and shed his outer layer of clothing. Becker stashed the clothing, with the folder, alongside a wooded creek that intersected the bicycle path. With the money stuffed into his boots, Becker started walking to a vehicle he had staged nearby.
Responding police officers, who had seen surveillance images from five prior bank robberies committed by Becker, recognized him walking along the shoulder of the road and detained him. A jogger who was on the bicycle path was brought to the scene, and identified Becker as a suspicious person seen walking out of the woods in the vicinity of the bicycle. A police K-9 discovered clothing nearby. Becker was detained for interview by officers and transported to the Columbia Police Department for questioning. At the station, officers recovered $1,394 from Becker that had been stolen from the bank. Becker confessed to the robbery to an FBI special agent, as well as to the other five robberies. He admitted committing the bank robberies to support a costly heroin addiction.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Business Owner Sentenced for $493,000 Employment Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., business owner was sentenced in federal court today for a scheme to defraud the government by failing to pay over to the Internal Revenue Service more than $260,000 that he collected from his employees in employment taxes. Along with more than $232,000 that he failed to pay as his employer portion of the taxes, the total loss to the government was more than $493,000.
Joseph Patrick Balano, 54, of Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to two years and three months in federal prison without parole. The court also ordered Balano to pay $493,443 in restitution. Balano has been in federal custody since his pretrial release was revoked in June 2014 after he committed two crimes involving thefts.
Balano, who pleaded guilty on Aug. 3, 2015, was the owner of Global Employment Group, Inc., doing business as Staffing Connections (Global Employment) in Grandview, Mo., and Kansas City, Mo. Two earlier businesses – Labor Connections and Labor Connections II – were dissolved in 2006, ostensibly because of employment tax issues. In their place, Balano formed Global Employment in December 2006. Employees who had been working for Labor Connections and Labor Connections II began working for Global Employment. Business operations stayed in the same location.
Balano admitted that he withheld employment taxes from his employees, but instead of paying over those taxes to the government, Balano kept most of those taxes for his own personal use. Balano used the money to finance his own personal expenses and expenses for family members, including gambling, mortgage payments (residence and lake house) and car payments.
The total amount withheld from employees but not paid to the IRS from April 2008 to April 2009 was $260,770. In addition, Balano failed to pay the employer portion of the taxes to the IRS as well, in the amount of $232,672. The total amount of loss to the government was $493,443.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Jefferson City Attorney, Two Women Sentenced for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., attorney, a Ukrainian national and an El Paso, Texas, woman were sentenced in federal court today for their roles in two marriage fraud conspiracies.
James Douglas Barding, 63, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to one month in prison, followed by one year of supervised release. The Court also ordered Barding to pay a $3,000 fine.
Barding pleaded guilty on Aug. 4, 2015, to enlisting a U.S. citizen to marry co-defendant Darya Chernova, 41, a citizen of Ukraine who currently resides in Chandler, Ariz. The purpose of the conspiracy was so that Chernova (with whom Barding was having an affair) could remain in the United States and seek citizenship.
Chernova, who pleaded guilty on Aug. 17, 2015, to her role in the marriage fraud conspiracy, was sentenced today to three years of probation (including 100 hours of community service) and ordered to pay a $1,000 fine.
Barding, an attorney and a married U.S. citizen, had a long-running affair with Chernova, who entered the United States on a student visa. During the marriage Chernova lived in Jefferson City and Barding was a frequent visitor and an overnight guest at her residence. Chernova’s residence was a couple of blocks away from the home Barding shared with his wife. Chernova has since moved out of the state and the two children she had with Barding now live with him.
Chernova received a bachelor’s degree in 2002 and an MBA from Lincoln University in 2005. She received a bachelor of science degree in mechanical engineering in 2010 and a master’s degree in mechanical and space engineering in 2011 from the University of Missouri.
Barding admitted that he told another co-conspirator, a friend identified as T.D., in late 2004 that, if he agreed to marry Chernova, he would not have to live with her and could get divorced after she gained sufficient status to remain in the United States. They were married on March 13, 2005, in Cape Girardeau, Mo., so that persons they knew in Cole County, Mo., would not be likely to find out about the marriage. Barding, who was a pilot and owned a plane, flew Chernova and T.D. to Cape Girardeau for the marriage ceremony and acted as a witness to their wedding.
Although they never lived together, Chernova and T.D. each filled out forms falsely claiming they shared a Jefferson City apartment. Chernova also submitted documents that purported to show they shared accounts and bills when, in truth, the majority of the submissions were in name only and no accounts or bills were actually shared. The only purpose for their marriage was so that she could evade immigration laws and remain in the United States with Barding. At various times Chernova made material false statements regarding her address and the true purpose of her marriage, which resulted in her being granted conditional permanent resident status on Nov. 27, 2008.
Approximately nine months and 16 days after the fraudulent marriage, a child was born to Barding and Chernova. A second child was born to them the following year, which she falsely claimed on immigration forms and on the birth certificate was the biological child of T.D., to prevent federal officials from suspecting the marriage was fraudulent.
Barding admitted that he met Chernova and T.D. on April 20, 2010, the day before Chernova and T.D. were scheduled to be questioned by representatives of the U.S. Citizenship and Immigration Service. The purpose of the meeting was to go over their testimony and Barding advised them to stick to their false stories regarding their fraudulent marriage. On April 21, 2010, Barding gave them a ride to the interview in St. Louis, Mo., where Chernova made false statements with Barding’s knowledge.
Soon afterward, Barding assured Chernova and T.D. that, if they stayed together and stuck to their stories, they would not get caught with their plan to deceive the government, and she could remain in the United States.
T.D.’s ex-girlfriend approached law enforcement and the Missouri Bar through an attorney, because she believed that Barding had committed a crime by getting T.D. to fraudulently marry Chernova for the sole purpose of allowing her to remain in the United States. The letters written by T.D.’s ex-girlfriend led to the initiation of investigations by the Missouri Bar’s Office of Chief Disciplinary Counsel (OCDC), local and federal law enforcement, and immigration authorities.
Also sentenced today, in a separate but related case, was Patricia Anne Ewalt, 64, of El Paso. Ewalt was sentenced by U.S. District Judge Stephen R. Bough to three years of probation and ordered to pay a $1,000 fine.
Ewalt pleaded guilty on Aug. 5, 2015, to her role in a conspiracy to commit marriage fraud so that co-defendant Oleksandr Nikolayevich Druzenko, also known as “Alex,” 35, a Ukrainian national residing in Jefferson City, could remain in the United States and seek citizenship. Druzenko also pleaded guilty to his role in the conspiracy and was sentenced on Nov. 18, 2015, to time served.
Druzenko and Ewalt were married on June 22, 2007, in Jefferson City. Druzenko entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. He was employed at the Missouri Office of Administration in Jefferson City at the time of the Oct. 3, 2012, indictment.
In 2007, Druzenko’s student visa was expiring and he would soon have to leave the United States. After two failed attempts to persuade U.S. citizens to marry him so that he could remain in the country, Ewalt agreed to marry him.
Druzenko and Ewalt, along with Barding and Chernova, conspired to arrange a fraudulent marriage between Druzenko and Ewalt so that he could remain in the United States in violation of the law.
Druzenko and Ewalt falsely claimed that they resided together, when, in fact, Druzenko and Ewalt did not live with each other. Druzenko and Ewalt each admitted that they knowingly submitted documents that were materially false and would serve to deceive the U.S. Citizenship and Immigration Service into believing Druzenko’s marriage to Ewalt was genuine. They also admitted that they submitted fraudulent documents so that Druzenko could achieve resident status in the United States.
As a result of his fraudulent marriage to Ewalt, and the submission of false material statements to U.S. Citizenship and Immigration Service, Druzenko was allowed to remain in the United States and gained permanent resident status when in fact he should not have been allowed to remain in the country and did not lawfully qualify for any adjustment to status.
These cases were prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Citizenship and Immigration Services and the Jefferson City, Mo., Police Department.
Springfield Area Business Owner, Son Sentenced for $5.5 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of several Springfield, Mo., area restaurants and his son were sentenced in federal court today, in two separate but related cases, for their roles in a more than $5.5 million bank fraud scheme.
Bruce Swisshelm, 69, of Battlefield, Mo., and his son, Bruce Swisshelm II, 44, of Springfield, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. Swisshelm was sentenced to one year and one day in federal prison, and ordered to pay $5,492,853 in restitution. Swisshelm II was sentenced to four weeks in custody and five years of probation and ordered to pay $100,000 in restitution.
Swisshelm was the owner of Horned Frog Deli, Inc., and Swisshelm Properties, Inc. These corporations, which specialized in the restaurant industry, owned and developed commercial properties in Springfield and elsewhere. Swisshelm owned and operated Burger King restaurants, Macaroni Grill restaurants, San Francisco Oven restaurants, McAlister’s Deli restaurants, Ebbett’s Field restaurants and a Fog City Coffee restaurant. Swisshelm II served as the president for Swisshelm Properties.
On July 22, 2015, Swisshelm pleaded guilty to bank fraud and money laundering; Swisshelm II pleaded guilty to misprision of a felony.
Swisshelm admitted that he submitted false financial documents to Great Southern Bank in order to receive four commercial loans, totaling $5,592,583, from February to June 25, 2011. The bank relied on the false information provided within the financial statements submitted by Swisshelm when it approved the commercial loans.
Swisshelm submitted financial statements to the bank that claimed his businesses earned a net income of more than $780,000 in 2010. Tax documents submitted by Swisshelm to the Internal Revenue Service revealed those businesses had losses that exceeded $1.8 million in 2010.
Swisshelm II admitted that he knew about his father’s bank fraud scheme. He was personally involved in the communications with Great Southern Bank, attended meetings at the bank and signed bank documents related to the issuance of the commercial loans. After Great Southern Bank had issued the loans, Swisshelm II was made aware of his father’s fraud scheme. Swisshelm II was made aware that financial statements submitted to the bank by his father were false. Despite possessing this knowledge, Swisshelm failed to notify authorities.
Swisshelm II admitted that he helped conceal his father’s crime after he became aware of the fraud scheme and delayed the fraud being reported to authorities by Great Southern Bank.
These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and IRS-Criminal Investigation.
Columbia Business Owner Charged with MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Columbia, Mo., business was charged in federal court today with possessing methamphetamine to distribute.
Troy C. Lewis, 30, of Columbia, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo., with possessing 50 grams or more of methamphetamine with the intent to distribute.
Lewis, the owner of The Tint Shop in Columbia, remains in federal custody pending a detention hearing on Monday, Jan. 25, 2016.
According to an affidavit filed in support of today’s criminal complaint, Columbia police officers stopped a Chevy Tahoe on Rangeline Road near Prathersville Road in Columbia on Thursday, Jan. 21, 2016. Lewis was lying down on the third row seat of the Tahoe in an attempt to hide from officers, the affidavit says. Upon searching the Tahoe, officers located a bag containing approximately 527 grams of marijuana and a bag containing approximately 71 grams of concentrated marijuana, made for vaping, between the second and third row seats on the floorboard. Additionally, the affidavit says, officers located were two bags of marijuana under the cup holder next to the third row seat where Lewis was lying. Each of these two bags contained in excess of 500 grams. Officers also located approximately 170 grams of methamphetamine in the center console area under the front tray.
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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Two Topeka Men Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Topeka, Kan., men have been sentenced in federal court for illegally possessing firearms.
Eric L. Price, 25, and Cortez T. Timley, 26, both of Topeka, were sentenced by U.S. Chief District Judge Greg Kays on Wednesday, Jan. 20, 2016. Price was sentenced to nine years and two months in federal prison without parole. Timley was sentenced to six years and eight months in federal prison without parole.
Price pleaded guilty on April 28, 2015, to being a felon in possession of firearms. Price admitted that he was in possession of a Smith and Wesson .40-caliber handgun , a Romanian Arms 7.62-caliber rifle, a Beretta 9mm pistol and a Masterpiece Arms 9mm pistol on June 13, 2014.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Price has prior felony convictions for possession of narcotics with intent to distribute, aggravated battery, and aggravated assault and battery.
Timley pleaded guilty on April 28, 2015, to possessing firearms in furtherance of a drug-trafficking crime. Timley admitted that he and Price were passengers in a vehicle on June 13, 2014, and were in possession of the firearms to protect their drug supply. Timley also admitted that there was a quantity of marijuana in the trunk of the vehicle, which they intended to sell to another person.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI, the Topeka, Kan., Police Department and the Independence, Mo., Police Department.
KCK Man Pleads Guilty to Airport Bomb HoaxRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man pleaded guilty in federal court today to conveying false information as part of a bomb hoax at Kansas City International Airport in August 2014.
David James Cain, 35, of Kansas City, Kan., pleaded guilty before U.S. Chief District Judge Greg Kays to one count of conveying false information.
At approximately 5:30 p.m. on Aug. 31, 2014, Cain parked the truck he was driving in front of Terminal B at Kansas City International Airport. The truck remained parked along the curb in front of the terminal for approximately one hour. A KCI traffic control officer had the truck ticketed, and announcements were made over the loud speaker inside the terminal that the owner of truck needed to report or the truck would be towed.
After approximately one hour, Cain approached the Southwest Airlines ticket counter and told a ticket agent that there was a bomb in the truck. Cain repeated that there was a bomb in the truck, and then twice told the ticket agent’s supervisor the same thing. The customer service supervisor contacted law enforcement. The KCPD Bomb Squad and an FBI bomb technician searched the truck, and no bomb or explosive material was located.
As a result of Cain’s false statements, KCI evacuated and closed Terminal B for approximately two hours. Shutting down the terminal caused significant flight delays throughout the rest of the day.
If the terms of today’s plea agreement are accepted by the court at the sentencing hearing, Cain will be sentenced to 18 months in federal prison, followed by three years of supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI and the Missouri State Highway Patrol.
Columbia Man Pleads Guilty to Synthetic Heroin Conspiracy that Resulted in DeathRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute synthetic heroin, which resulted in the death of an 18-year-old man.
Nick Connor Burris, 21, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in an Aug. 25, 2015, federal indictment.
By pleading guilty today, Burris admitted that he participated in a conspiracy to distribute synthetic heroin (acetyl fentanyl) in August 2015. Co-defendant Marquette Deandre Murrell, 25, of Columbia, pleaded guilty on Dec. 10, 2015, to the same charge.
Columbia Police Department officers were dispatched to an apartment in the 2400 block of West Broadway in reference to a drug overdose at approximately 12:33 a.m. on Aug. 9, 2015. Upon arrival, officers located an 18-year-old deceased white male. Burris admitted that he supplied the drug which the deceased man had taken immediately prior to overdosing.
Officers located a bag containing the synthetic heroin on Burris. Burris admitted to purchasing the heroin the deceased man took from Murrell, and bringing it to the apartment where the overdose occurred. Burris also commented that Murrell told him the heroin was 95 percent pure, and that efforts should be made to dilute the purity by adding a cutting agent. Burris mixed the synthetic heroin with Benadryl before distributing it to the victim. Burris stated that he was aware of another person who overdosed on the product supplied by Murrell, but lived.
Another person at the apartment told officers that he attempted to revive the deceased male by placing him in cold water and then attempting to have him vomit. He estimated that 10 minutes passed before emergency responders arrived at his apartment.
At approximately 7 p.m. the same day, Murrell was located near downtown Columbia and taken into custody. Murrell was in possession of a bag containing numerous suspected Alprazolam pills and approximately four grams of synthetic heroin. Murrell admitted that he supplied the drug that Burris mixed with Benadryl and distributed to the deceased male.
Under federal statutes, Burris and Murrell are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department and the Drug Enforcement Administration.
Captured Fugitive Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bourbon, Mo., man who was a federal fugitive for more than a year, pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine.
Lucas John Haslag, 31, of Bourbon, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to distribute methamphetamine between June 19, 2014, and Nov. 21, 2015.
By pleading guilty today, Haslag admitted that he is responsible for the distribution of approximately five pounds (2.265 kilograms) of methamphetamine.
Haslag was indicted by a federal grand jury in Jefferson City in June 2014 after law enforcement officers conducted a car stop and found a pound of methamphetamine, a Derringer pistol and a drug ledger in the vehicle he was driving in Freeburg, Mo. He was a fugitive from justice, but in October 2015 federal agents obtained information about Haslag’s actions and whereabouts. This investigation led to the execution of a search warrant at the Bourbon residence shared by Haslag on Nov. 9, 2015.
Law enforcement officers discovered two pounds of methamphetamine, several firearms and $22,661 in Haslag’s residence. Haslag was arrested on Nov. 23, 2015, and has remained in federal custody without bond.
Under federal statutes, Haslag is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group) and the Lake Area Narcotics Enforcement Group (LANEG).
Battlefield Man Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Battlefield, Mo., man has been indicted by a federal grand jury for receiving and distributing child pornography.
Dennis Prince, 61, of Battlefield, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Jan. 19, 2015. Prince was arrested and had his initial court appearance today.
The federal indictment alleges that Prince received and distributed child pornography between Oct. 31, 2013 and July 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 James J. Kelleher. It was investigated by the FBI, the Springfield, Mo., Police Department, the Battlefield, Mo., Police Department, and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Ziggies Owner Pleads Guilty to $1.3 Million Tax SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of Ziggies restaurants in Springfield and elsewhere pleaded guilty in federal court today to failing to pay more than $1.3 million in federal payroll taxes.
Agim Zendeli, 43, of Springfield, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to an information that charges him with failure to pay over to the IRS the payroll taxes he collected from his employees.
Zendeli operated a chain of restaurants under the name “Ziggies” in Springfield, Republic, Willard, Marshfield, Nevada, West Plains, Rolla, Carthage and Poplar Bluff in Missouri, and in Fort Scott and Pittsburg in Kansas, from 1998 to 2014.
From March 2004 through December 2014, Zendeli opened and closed 18 companies he formed to operate as Ziggies. For each such company, Zendeli withheld federal income taxes and Social Security and Medicare taxes from his employees’ pay, and the employees believed those amounts had been paid over the IRS on their behalf. However, Zendeli admitted today, he did not pay those amounts over to the IRS as he was required to do.
From 2004 through 2014, Zendeli diverted substantial amounts of money from the restaurant LLCs he owned and operated. During this period, Zendeli lived a lavish lifestyle, and spent substantial sums on vacations, gambling trips, entertainment and luxury vehicles, including three BMWs, two Cadillac Escalades, two Infiniti QX56s, a 2009 Mercedes, a 2008 Acura and a 2004 Land Rover.
In order to avoid IRS collection of past due employment taxes, Zendeli repeatedly formed new entities to continue restaurant operations. Once each company accumulated a large tax debt to the IRS, Zendeli ceased operating under that company’s name and opened a new entity, often in the name of a family member, partner, or employee. Zendeli, however, maintained custody and control of the businesses.
The total tax loss resulting from the scheme for all entities controlled by Zendeli totals $1,330,708, which includes $741,099 in payroll taxes he deducted from his employees’ pay, plus the required employer’s contributions to Social Security, Medicare and unemployment taxes. Under the terms of today’s plea agreement, Zendeli must pay the government $1,330,708 in restitution, as well as statutory interest.
In addition, Zendeli attempted to avoid payment of approximately $654,260 in past due federal and state employment taxes by filing bankruptcy on March 26, 2010. Prior to the bankruptcy, Zendeli divorced his wife and transferred the trademarked name “Ziggies®” to his father, for a token payment. (Funds from the 2011 sale of trade name “Ziggies®” were remitted through Zendeli’s bankruptcy proceedings, after the trustee determined a fraudulent transfer of assets had occurred.)
Under federal statutes, Zendeli is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. 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 Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Former President Pleads Guilty to Embezzling from UnionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees pleaded guilty in federal court today to a wire fraud scheme in which he embezzled more than $7,000 from the union local.
Lowell Wreh, 46, of Raytown, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to an information that charges him with one count of wire fraud.
Wreh was the president of American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from July 2013 until he was suspended in April 2014, and officially dismissed on Aug. 11, 2014. Prior to that, Wreh had been the acting president of Local 1707 since Oct. 20, 2012. AFSCME Local 1707 is a labor organization in Kansas City, Mo., whose members are employed at the Jackson County Department of Corrections.
By pleading guilty today, Wreh admitted that he issued $7,642 in checks from the Local 1707 bank account to himself and others for his own benefit and personal use from January 2013 through Feb. 28, 2014.
Under the terms of today’s plea agreement, Wreh must pay restitution to Local 1707 for the total amount of the loss.
Under federal statutes, Wreh is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor - Office of Labor-Management Standards.
Springfield Man, Woman Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., residents were indicted by a federal grand jury today for producing and distributing child pornography.
Tracy Ann Smith, 41, and Christopher Parker Peck, 39, both of Springfield, were charged in a four-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Smith used a minor, identified as Jane Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Smith is also charged with receiving and distributing child pornography during that time.
Today’s indictment alleges that Peck used two minors, Jane Doe #1 and another minor identified as John Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Peck is also charged with receiving and distributing child pornography during that time.
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 James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Joplin Man Pleads Guilty to Money Laundering in $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 money laundering, the third defendant to plead guilty to charges related to a conspiracy to sell more than $5.6 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Neal Sawyer Robbins, 29, of Joplin, Mo., pleaded guilty today before U.S. Magistrate Judge David P. Rush to money laundering.
Co-defendant Virgil Orin Bird, Jr., 52, of Joplin, pleaded guilty to the same charge on Thursday, Jan. 14, 2016. Co-defendant Brian Dale Fleming, 49, of Mountain Grove, Mo., pleaded guilty on Nov. 19, 2015, to his role in a conspiracy to transport stolen property across state lines and to money laundering.
Brian Fleming admitted that he utilized his business, Tri-State Grease in Cabool, Mo., to transport spent cooking oil that had been stolen from restaurants from Nov. 1, 2010, to Sept. 30, 2011.
Spent cooking oil is the by-product of cooking oil that restaurants use for frying food. Restaurants have on-site collection tanks in which their spent cooking oil was stored. Many restaurants establish contracts with various companies for the collection and removal of spent cooking oil. Brian Fleming and his co-conspirators trained, encouraged and aided others to steal spent cooking oil in order to sell it to others for recycling.
On July 11, 2011, Brian Fleming assisted undercover law enforcement officers in what he believed was the theft of approximately 32,000 pounds of spent cooking oil with a value of approximately $9,000 from a tanker truck. Fleming paid an undercover officer $4,650 for the purported stolen spent cooking oil. Brian Fleming told undercover agents that he sent his drivers to Memphis, Tenn., and other areas to steal spent cooking oil.
Brian Fleming has agreed to forfeit any interest he may have to $595,429 that was seized by law enforcement officers as proceeds of the illegal scheme.
By pleading guilty today, Robbins admitted that he participated with undercover law enforcement agents to obtain spent cooking oil, which he believed had been stolen. Robbins delivered the spent cooking oil to a recycling facility, for which he was paid $1,400. Robbins paid $7,076 to individuals whom he assisted in stealing the spent cooking oil.
Bird admitted that he conducted a financial transaction on Sept. 20, 2011. Bird paid $6,720 to undercover agents for spent cooking oil he believed had been stolen from a tanker truck in Kansas and transported to Missouri. Under the terms of his plea agreement, Bird must forfeit to the government the $6,720 that was paid to the undercover agents.
Brian Fleming also pleaded guilty, in a separate case, to being a felon in possession of a firearm. Brian Fleming admitted that he was in possession of a Smith and Wesson 9mm pistol and ammunition on Feb. 9, 2015. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brian Fleming has a prior felony conviction for distributing a controlled substance.
Under federal statutes, Robbins and Bird are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000 (or twice the value of the funds involved) and an order of restitution. Brian Fleming is subject to a sentence of up to 35 years in federal prison without parole plus a fine up to $1 million (or twice the value of the funds involved) and an order of restitution. Brian Fleming is scheduled to be sentenced on March 3, 2016. Sentencing hearings for Robbins and Bird will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Taney County Business Owner Pleads Guilty to Failure to Pay $490,000 in Payroll TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Taney County, Mo., business owner pleaded guilty in federal court today to failing to pay over more than $490,000 in taxes he withheld from his employees’ paychecks.
Carl Justin Gage, 41, of Ridgedale, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with the willful failure to pay over taxes.
Gage owned and operated multiple businesses in Taney County, including Eagle Construction and Excavating, LLC, Gage Excavating, LLC, Gage Family Entertainment, LLC, and Hollister Pizza Company, LLC. The total tax harm (including the employer’s matching portions) due from the four corporations is $490,227. Gage admitted he was aware of these requirements and willfully did not pay over the tax even though he withheld the taxes from the employees’ paychecks.
According to today’s plea agreement, Gage hired a bookkeeper to manage the finances of his businesses, including the payroll and preparation of payroll tax returns. The bookkeeper notified Gage of the payroll tax due and owning, but Gage willfully made the decision each quarter to not pay over the taxes withheld from his employees’ paychecks to the Internal Revenue Service.
Beginning in the fourth quarter of 2010 through the first quarter of 2012, Gage willfully failed to pay over $62,830 in taxes that had been withheld from his employees’ paychecks for Gage Family Entertainment.
Beginning in the third quarter of 2008 through the second quarter of 2010, Gage willfully failed to pay over $176,573 in taxes that had been withheld from his employees’ paychecks for Gage Excavating. On June 18, 2010, Gage began operating his excavating business under the new name, Eagle Construction and Excavating, LLC. Gage continued his scheme to willfully fail to pay over $48,821 in taxes that had been withheld from his employees’ paychecks from the third quarter of 2010 through the fourth quarter of 2011.
Beginning in the fourth quarter of 2008 through the third quarter of 2010, Gage willfully failed to pay over $25,113 in taxes that had been withheld from his employees’ paychecks for Hollister Pizza Company.
Under federal statutes, Gage is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. 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 FDIC - Office of Inspector General and IRS-Criminal Investigation.