Western District of Missouri
Press releases recorded for this federal judicial district.
Independence Man Pleads Guilty to Child Porn, Faces 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to attempting to produce child pornography by secretly recording videos of unsuspecting victims in restrooms and changing rooms in various businesses at Independence Center and elsewhere.
Nicholas A. Braile, 25, of Independence, pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to two counts of attempting to produce child pornography.
Braile was arrested at a Walmart store in Independence on May 15, 2014, when a Walmart security guard caught him taking an “up skirt” photo of a female customer with his cell phone. Law enforcement officers arrested Braile and obtained search warrants for his cell phone and residence, where they seized a desktop computer and a laptop computer.
Investigators located video files on the desktop computer of women and girls changing in store dressing rooms, videos taken in the restroom at Braile’s work place (Harbor Freight Tools in Independence) and “up skirt” video files from several businesses at Independence Center. All of the businesses involved in the investigation cooperated fully with law enforcement officers.
The store manager at Harbor Freight Tools identified photographs of two teenage victims as store employees. The photographs were taken from videos that depicted the teens using the restroom and changing clothes at Harbor Freight Tools. Braile also filmed customers who used the restroom, including adults and small children. Detectives observed the restroom where the videos had been produced. There was a small section of the ceiling where the ceiling tile was missing. This restroom was next to a janitor closet. Located in the ceiling of the janitor closet was a paint roller, without the brush, that was positioned over the hole in the ceiling tile in the restroom. Detectives surmised that the paint roller was used to hold Braile’s cell phone over the hole in the ceiling tile so that he could film the teens in the restroom without their knowledge.
Detectives determined that a victim in one of the “up-skirt” videos located on Braile’s computer worked at a store in Independence Center. The store manager identified the 16-year-old victim. The video depicts Braile asking the victim for assistance and then, because of his close proximity to her, Braile is able to maneuver his phone into a position to film up the victim’s skirt.
Braile’s cell phone contained several “up skirt” and dressing room videos from dates shortly prior to his arrest. In several videos, Braile followed females around stores until he was able to get his phone under their skirt. In one video he looked under a dressing room stall and moved to another dressing room to get closer to a female victim. In another instance a prepubescent girl was standing next to her father when Braile took a video up her skirt.
The forensic examination of Braile’s computers and phone also located approximately 468 photographs he had taken of prepubescent female children. These images were taken at Braile’s work place and at Independence Center. The images depict children shopping with their parents. There is no nudity in the images but they focus on the buttocks and crotch area of the children.
The forensic examiner also located child pornography that had been downloaded from the Internet. The collection, most of which was located on a laptop computer, included 138 video files of child pornography. There were also so-called “modeling images” of young girls approximately 9 to 14 years of age.
Under the terms of today’s plea agreement, Braile will be sentenced to 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, 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."
Three Jefferson City Men Charged with Distributing MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Jefferson City, Mo., men have been charged in federal court following a police chase that resulted in the seizure of a large quantity of methamphetamine.
David E. Rodebaugh, 40, Michael Pearson, 31, and Hernan Hurtado, 23, all of Jefferson City, were charged in separate, but related, criminal complaints filed in the U.S. District Court in Jefferson City, Mo., on Saturday, Feb. 14, 2015. All three defendants had their initial court appearances today and remain in federal custody pending detention hearings.
Rodebaugh and Pearson were each charged with one count of possessing methamphetamine with the intent to distribute and one count of participating in a conspiracy to possess methamphetamine with the intent to distribute. Hurtado was charged with one count of distributing methamphetamine.
According to affidavits filed in support of the federal criminal complaints, law enforcement officers were conducting surveillance of Rodebaugh on Friday, Feb. 13, 2015 as part of an ongoing drug-trafficking investigation. Rodebaugh and Pearson met with Hurtado in the parking lot at the Capital Mall in Jefferson City, the affidavit says, where Pearson took a plastic bag from the back cab area of Hurtado’s pickup and placed it in the back seat of the Acura he and Rodebaugh had driven to the mall.
Pearson drove the Acura, with Rodebaugh in the front passenger seat, as they left the mall. Police attempted to stop Pearson, the affidavit says, but he refused to stop and led officers in pursuit. The Acura was eventually rendered inoperable and Pearson fled on foot. Rodebaugh remained inside the Acura and was detained. Pearson was later located and arrested.
According to the affidavit, law enforcement officers found the plastic bag, which Rodebaugh later admitted he had thrown out the vehicle’s window during the pursuit, about 75 yards from where the Acura was stopped. Inside the plastic bag were two large bundles that contained approximately five pounds of methamphetamine.
Later that same afternoon, Hurtado called the Jefferson City, Mo., Police Department to report he had been robbed of $6,000 while at his home in Jefferson City. Hurtado voluntarily came to the police station, where he was questioned and arrested.
Dickinson cautioned that the charges contained in these complaints 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 Jim Lynn. It was investigated by the Drug Enforcement Administration and MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group).
Springfield Man Sentenced to 17 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man who was part of a nationwide e-mail network was sentenced in federal court today for receiving and distributing child pornography.
Joseph Allen High, 44, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 17 years in federal prison without parole.
On Sept. 17, 2014, High pleaded guilty to receiving and distributing child pornography over the Internet.
High’s e-mail address was discovered by federal agents in Illinois during an investigation into a national e-mail network that exchanged child pornography among its members. More than 1,000 individuals utilized their e-mail accounts to trade images of child pornography with one another. Agents determined that High had received 17 videos and 72 images of child pornography between Dec. 17, 2012, and Feb. 16, 2013. The videos included children as young as three or four years old, and children being sexually assaulted by adults.
According to court documents, High sexually abused an 8-year-old girl on multiple occasions. Agents discovered Internet images of the child victim, clothed and asleep, by typing High’s e-mail address into the Google search engine.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Business Owner Sentenced for Filing False Tax ReturnsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Springfield, Mo., business was sentenced in federal court today for filing false tax returns on more than $1.9 million of income over a five-year period.
Stephen J. Schroff, 53, of Springfield, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole. The court also ordered Schroff to pay $600,023 in restitution to the Internal Revenue Service.
Schroff was the owner and operator of Stephen Schroff, Inc., doing business as ABC Roofing in Springfield.
On Sept. 25, 2014, Schroff pleaded guilty to filing a materially false tax return. Schroff admitted that he filed false federal income tax returns for the years 2005 through 2009 by failing to report $1,925,622 of income.
According to court documents, during the commission of this offense, Schroff moved from a 3,000-square-foot home into a 4,000-square-foot home. Schroff also owned a Cadillac Escalade, a Chevy Corvette, a lake house, and a boat. Schroff invested money in a partnership that acquired rental property and began the development of a residential subdivision.
Schroff admitted that he concealed income from his business. In 2007 Schroff began diverting business receipts from ABC Roofing by cashing roofing customers’ checks instead of depositing them in the business bank account, and by depositing roofing customers’ checks into secret accounts at other banks. Schroff did not claim any of the embezzled business receipts as income when he filed federal tax returns in 2007, 2008 and 2009. In total, Schroff failed to report $1,223,572 of income from the embezzlement scheme.
Schroff’s actions resulted in a total tax loss to the federal government of $600,023.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by IRS-Criminal Investigation and the IRS-Special Enforcement Program.
Kansas Man Pleads Guilty to Two Bank RobberiesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man who was still on supervised release for a 2009 bank robbery conviction pleaded guilty in federal court today to robbing two more banks.
Antonio P. Gaitan, 36, of Kansas City, Kan., pleaded guilty before U.S. Chief District Judge Greg Kays to one count of bank robbery in an indictment returned in the Western District of Missouri and to a second count of bank robbery in an indictment returned in the District of Kansas.
By pleading guilty today, Gaitan admitted that he stole $4,114 from Country Club Bank, 1 Ward Parkway, Kansas City, Mo., on April 2, 2014. Gaitan also admitted that he stole $5,130 from Truity Credit Union in Lawrence, Kan., on April 5, 2014.
Gaitan was identified from surveillance photos from the Country Club Bank robbery. Investigators learned that Gaitan was traveling to Nebraska, and he was arrested by authorities in that state.
Gaitan recently had escaped from custody at Heartland Center for Behavioral Change after being sentenced to five years in prison and three years of supervised release for a 2009 bank robbery. His supervised release was revoked by the court.
Under the terms of today’s plea agreement, Gaitan will be sentenced to 10 years in federal prison without parole for the bank robberies, plus a consecutive revocation sentence of 24 to 31 months for violating his supervised release. Gaitan must pay $9,244 in restitution.
This case is being prosecuted by Special Assistant U.S. Attorney Leena Ramana. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Lawrence, Kan., Police Department and the Omaha, Neb., Police Department.
Joplin Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man who is a convicted sex offender was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Donnie Ray Sumner, 44, of Joplin, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Sumner has a prior state felony conviction for possessing child pornography.
On April 23, 2014, Sumner pleaded guilty to receiving and distributing child pornography. Law enforcement officers executed a search warrant at Sumner’s residence on Jan. 21, 2013, and seized a desktop computer and a laptop computer that contained images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri 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."
Houston Woman Charged in Sister's Murder-for-hire SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Houston, Mo., woman has been charged in federal court with attempting to hire someone to murder her sister.
Leta Faye Douglas, of Houston, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Friday, Feb. 13, 2015. Douglas remains in federal custody pending her detention hearing on Thursday, Feb. 19, 2015.
Douglas allegedly asked her ex-husband to help her hire someone to kill her sister for $2,000.
According to an affidavit filed in support of the federal criminal complaint, Douglas sent a letter asking for help to her ex-husband in Nebraska. They have been divorced for 18 years, the affidavit says, and have not maintained contact.
Douglas’s ex-husband called her, the affidavit says, and during their telephone conversation, she told him she needed him to help her “take care of” her sister. According to the affidavit, Douglas’s parents were in a home for the elderly and her sister was in charge of their finances. Douglas claimed her sister would not handle their parents’ finances correctly, the affidavit says, but her ex-husband believed that Douglas wanted to have access to her parent's financial estate. Douglas told her ex-husband that she wanted her sister killed.
Douglas’s ex-husband initially told her that he did not want to help her. He believed she was serious, the affidavit says, so he reported the incident to the Nebraska State Patrol. Investigators then recorded a telephone call made to Douglas by her ex-husband on Jan. 27, 2015. During the telephone conversation, the affidavit says, he told her that he knew someone who would murder her sister. They allegedly agreed that Douglas would pay $2,000 after she received her tax return to have her sister killed.
On Feb. 2, 2015, Douglas allegedly called her ex-husband and told him she really wanted this done. Douglas allegedly told him that, if he took care of this, she would let him see his daughter (whom he has not had contact with in many years). He told Douglas to send him a picture of her sister and a map to her house, the affidavit says, which she did.
On Feb. 6, 2015, an undercover employee of the Missouri State Highway Patrol called Douglas and they arranged to meet at the Walmart in Houston. Douglas allegedly met with the undercover employee on Feb. 9, 2015, and they had a conversation while sitting in her vehicle. According to the affidavit, she gave the undercover employee a photograph of her sister and a hand-drawn map to her sister’s residence. She allegedly told him how to find her sister’s house and gave him a brief description of the interior layout of the house. Douglas told him that her sister’s husband would also be home and that they had two dogs inside the house, according to the affidavit. Douglas allegedly handed him an envelope that contained $2,000.
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 the FBI, the Missouri State Highway Patrol and the Nebraska State Patrol.
KC Man Sentenced to 10 Years for Illegal Firearms Following Fatal CollisionRead 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 firearms, following a high-speed car chase that ended with a collision that killed an employee of the Kansas City Police Crime Laboratory.
Larneal D. Davis, 29, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.
On Aug. 12, 2014, Davis pleaded guilty to being a felon in possession of firearms. Davis admitted that he possessed two firearms in the vehicle he was driving on July 6, 2013. The two firearms – a Taurus .40-caliber semi-automatic pistol and a Ruger, .380-caliber semi-automatic pistol – were discovered in Davis’s wrecked vehicle following its collision with another vehicle at 65th Street and Troost in Kansas City.
Michael Chou, a crime scene technician at the Kansas City Police Crime Laboratory, was killed when his vehicle was broadsided by Davis’s vehicle while Davis was fleeing from Kansas City police officers. Davis was arrested a short distance from the accident scene after a brief pursuit on foot.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Davis has prior felony convictions for possession of crack cocaine with intent to distribute, carrying a firearm in connection with a drug offense and distribution of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.
St. Joseph Man Sentenced to 17 Years, Among 10 St. Joseph Residents Sentenced for Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 St. Joseph, Mo., residents have been sentenced in federal court for their roles in a drug-trafficking conspiracy.
Operation Family Feud was a partnership between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department and the Buchanan County Drug Strike Force. Numerous firearms and various quantities of crack cocaine, powder cocaine and marijuana were seized or purchased during the investigation.
Terrance A. Johnson, also known as “Skurge,” 34, of St. Joseph, was sentenced by U.S. District Judge Dean Whipple today to 15 years in federal prison without parole. Johnson was sentenced to an additional two years in prison for violating his supervised release in a separate and unrelated case, for a total sentence of 17 years in federal prison without parole.
Johnson was the source of cocaine and crack cocaine for the conspiracy. Johnson is among 16 defendants who have pleaded guilty to participating in a conspiracy to distribute 280 grams or more of crack cocaine and five kilograms or more of powder cocaine between Jan. 1, 2009, and Oct. 17, 2012. An additional co-defendant has pleaded guilty to a related drug-trafficking charge.
Johnson pleaded guilty to being a felon in possession of a firearm in 2006 and was sentenced to three years and one month in federal prison. Following his incarceration for that conviction, he was serving a three-year term of supervised release while he was involved in the drug-trafficking conspiracy. His supervised release was revoked today.
Also sentenced today to 10 years in federal prison were Anthony M. Busey, also known as “Bew” or “AB,” 36, Dejuan Ford, also known as “Lil Doe,” 23, and Ramon W. Ford, also known as “R-Lo,” 25, all of St. Joseph. Anthony A. Wilson, also known as “Tone Loc,” 28, of St. Joseph, was sentenced today to two years and three months in prison.
Five co-defendants were sentenced on Monday, Feb. 9, 2015. Keyon R. Wilkinson, also known as “Key” or “Lovey,” 23, of St. Joseph, was sentenced to five years and 10 months in federal prison without parole. Wilkinson was identified in court documents as a member of a St. Joseph street gang, the “17th Street Zillas.” A confidential informant bought crack cocaine from Wilkinson approximately 150 times over the course of the conspiracy.
Also sentenced yesterday were St. Joseph residents Donald J. Greer, also known as “DJ,” 34, to five years in federal prison, Dareal S. Green, also known as “DG,” 27, to seven years and three months in prison, and Duran Hughes, also known as “Bozey,” 29, to eight years in prison.
Co-defendant Jarrodd D. Page, also known as “JP” or “Pistol,” 22, of St. Joseph, was sentenced on Feb. 2, 2015, to seven years in federal prison without parole.
Co-defendants Jaron M. Ewing, also known as “Pork,” 21, Elliott D. Ross, also known as “El,” 22, Markanthony T. Greer, also known as “Nate,” 31, Jamie G. Beattie, 54, Karlo L. Ginn, also known as “Los,” 32, all of St. Joseph, and Tyrell W. E. Page, also known as “Relby Gunz” or “Young Gunna,” 29, of Gladstone, Mo., have pleaded guilty to their roles in the conspiracy and await sentencing. Susan A. Thomas, also known as “Mama Sue,” 58, pleaded guilty to maintaining an apartment that was made available for the unlawful distribution of crack cocaine, and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Buchanan County Drug Strike Force.
Joplin, Mountain Grove brothers indicted for $5.6 Million SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two brothers in Joplin, Mo., and Mountain Grove, Mo., and two employees have been indicted by a federal grand jury for their roles in 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.
Jeffery Lynn Fleming, 58, of Joplin, his brother, Brian Dale Fleming, 48, of Mountain Grove, and Virgil Orin Bird, Jr., 51, and Neal Sawyer Robbins, 28, both of Joplin, were charged in a 12-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Jan. 20, 2015. That indictment was unsealed and made public today upon Jeffery and Brian Fleming’s arrests and initial court appearances.
According to the indictment, Jeffery and Brian Fleming sold approximately $5,658,636 worth of spent cooking oil that had been stolen from restaurants to a grease recycling business in Tulsa, Okla., between Nov. 1, 2010, and Sept. 30, 2011.
Spent cooking oil was the by-product of cooking oil that restaurants used for frying food. Restaurants had on-site collection tanks in which their spent cooking oil was stored. Many restaurants established contracts with various companies for the collection and removal of spent cooking oil.
Jeffery Fleming operated Fleming Recycling, LLC, in Carterville, Mo. Fleming Recycling allegedly bought stolen spent cooking oil from drivers who stole it from numerous restaurants in Missouri, Tennessee, Iowa, Kansas and Oklahoma. Fleming Recycling then allegedly sold the stolen spent cooking oil to a grease recycling business in Tulsa. Bird and Robbins worked for Jeffery Fleming at Fleming Recycling.
Brian Fleming operated Tri-State Grease in Cabool, Mo. Tri-State Grease allegedly bought stolen spent cooking oil from drivers who stole it both inside and outside the state of Missouri. Tri-State Grease then allegedly sold the stolen spent cooking oil to Fleming Recycling.
All four defendants are charged with participating in a conspiracy to commit the crime of interstate transportation of stolen property.
According to the indictment, a grease recycling business in Tulsa sent a tanker truck to Fleming Recycling on an almost-daily basis. Each tanker truck held approximately 45,000 pounds of stolen spent cooking oil that was valued at approximately $20,000.
The indictment alleges a number of specific instances in which stolen spent cooking oil was sold to the Tulsa business. For example, on Jan. 31, 2011, three tanker truck loads of stolen spent cooking oil allegedly were transported to Tulsa. The Tulsa recycling business then allegedly sent three wire transfers totaling $44,873 to Jeffery Fleming as payment.
The federal indictment cites several instances in which undercover law enforcement officers sold truck-loads of purportedly stolen spent cooking oil to Fleming Recycling and received payment. For example, on July 11, 2011, Brian Fleming allegedly assisted undercover officers in the purported theft of approximately 32,000 pounds of spent cooking oil with a purported value of approximately $9,000 from an undercover tanker truck. The next day, the indictment says, Brian Fleming paid an undercover officer $4,650 for the purported stolen spent cooking oil.
During the conspiracy, the indictment says, Jeffery Fleming (through Fleming Recycling) paid Brian Fleming, Bird, Robbins and other co-conspirators approximately $2,600,709 for stolen spent cooking oil.
In addition to the conspiracy, Jeffery Fleming is charged with one count of interstate transportation of stolen goods, two counts of conducting financial transactions with criminally-derived proceeds, one count of making false statements on tax returns, one count of structuring a financial transaction in order to evade federal reporting requirements and one count of causing a financial institution to fail to file a transaction report. Jeffery Fleming and the other defendants are also charged in five separate money-laundering counts for conducting financial transactions to promote an unlawful activity.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government $595,429 seized by law enforcement officers and a money judgment of $5,658,636, representing the proceeds of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys 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.
Four Columbia Residents Indicted in Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Columbia, Mo., residents were indicted by a federal grand jury today for their roles in a conspiracy to distribute heroin in which two persons suffered an overdose.
Javis Deonn Wideman, 36, also known as “Booby” or “Boobie,” James Delvico Borden, also known as “Earl Johnson,” 38, Alec Matthew Ell, 20, and Angelica Melanie Polston, 20, all of Columbia, were charged in a 10-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a Dec. 17, 2014, indictment that charged only Ell and Polston, and a Jan. 21, 2015, criminal complaint that charged only Wideman and Borden.
Today’s indictment alleges that all four defendants participated in a conspiracy to distribute heroin in Boone County from February 2014 to Jan. 20, 2015. The conduct of Wideman and Borden as members of the conspiracy, the indictment says, involved 100 grams or more of heroin.
According to an affidavit filed in support of the original criminal complaint, Columbia police officers were dispatched to a residence on Jan. 10, 2015, in reference to a heroin overdose. Upon arrival, officers discovered an unresponsive man and woman. Medical personal were able to revive both of them and the woman was transported to the hospital for further treatment. Officers searched the residence and discovered a package of heroin, still unused, along with drug paraphernalia used to inject heroin. A resident told officers that Wideman had supplied the heroin.
Wideman was arrested on Jan. 20, 2015, the affidavit says, after a cooperating individual met Wideman to purchase a half gram of heroin. Borden was arrested at his residence on the same day. Officers executed a search warrant at Borden’s apartment and found approximately 100 grams of heroin packaged for distribution, along with scales and other items.
According to the affidavit, Wideman and Borden both participated in undercover purchases of heroin in August and September 2014 through an individual who was cooperating with a law enforcement investigation.
In addition to the conspiracy, Ell is charged separately with four counts of distributing heroin and one count of possessing heroin with the intent to distribute. Ell and Polston are also charged together in one count of distributing heroin. Wideman and Borden are each charged separately with one count of distributing heroin and they are charged together in one count of distributing heroin.
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 Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the Jefferson City, Mo., Police Department and MUSTANG (Mid-Missouri Unified Strike Team and Narcotics Group).
Brothers with Springfield, Joplin, Webb City Businesses Plead Guilty to $6.7 Million K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two brothers who owned businesses in Springfield, Joplin and Webb City, Mo., pleaded guilty in federal court today to their roles in a $6.7 million conspiracy that involved the distribution of approximately 2,253 kilograms of synthetic marijuana, commonly referred to as K2.
Jeremy W. Elliott, 42, of Rogers, Ark., and his brother, Travis L. Elliott, 38, of Springfield, Mo., pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to conspiracy to commit mail fraud.
Travis Elliott was the registered agent of “A Head of Our Times, LLC.,” which ran a retail store in Springfield. He employed a manager and others at this store. Jeremy Elliott was the owner of “Mr. Nice Guy,” which operated retail locations in Joplin and Webb City.
Both Travis and Jeremy Elliott admitted they engaged in a conspiracy between Oct. 29, 2009, and Nov. 6, 2012, to distribute (via FedEx) Kryp2nite products, which were falsely labeled as “incense” and “not for human consumption,” but in reality contained synthetic marijuana that was intended for human consumption as a drug. Conspirators manufactured and distributed K2 to retail outlets in Springfield, Joplin, Webb City and elsewhere through a Springfield business, ThirdEye, Inc.
Joplin police officers seized Kryp2nite products from the “Mr. Nice Guy” store in Joplin on two occasions, including a seizure of 21.7 kilograms of synthetic marijuana on May 7, 2012.
Law enforcement officers also executed a search warrant at the “Mr. Nice Guy” store in Webb City on May 7, 2012. Records seized during the execution of the search warrant indicated that during the month of March 2012, the Webb City store sold $205,675 in inventory. Records indicated that during April 2012 the store sold $146,204 in inventory. Approximately 10.7 kilograms of synthetic marijuana was seized.
An employee at the Webb City location told officers that she knew people were ingesting the synthetic marijuana products she sold to them. She stated that employees were instructed not to sell synthetic marijuana to customers who overtly spoke of ingesting these products. This employee also admitted to smoking these products to get high.
Springfield police officers made undercover purchases of K2 from “A Head of Our Times” in Springfield. On June 12, 2012, police officers executed a search warrant at the business and seized approximately two kilograms of Kryp2nite, as well as records documenting the purchase and delivery of synthetic marijuana.
Officers observed signage in the store that read, “Incense, Sachets and Potpourri Blends are not for human consumption!” and “Talk of smoking it or otherwise using it illegally will result in the loss of the sale and you may be asked to leave. Thank you! @.” The products labeled as incense were located in proximity to smoking devices such as bongs and vaporizers.
Both Travis and Jeremy Elliott received shipments of Kryp2nite products from ThirdEye, a Springfield business owned by co-defendants Douglas K. Franklin, 56, and his son, Brandon D. Franklin, 28, both of Springfield, who also have pleaded guilty to their roles in the mail fraud conspiracy. Douglas and Brandon Franklin also pleaded guilty to participating in a money-laundering conspiracy related to conducting financial transactions involving the proceeds of unlawful activity, which were designed to conceal or disguise the nature, location, source, ownership and control of the proceeds.
Charges against Douglas Franklin’s daughter, Caitlyn E. Franklin, 26, of Springfield, were dismissed following a pre-trial diversion agreement. Co-defendant DeWayne T. Barnhart, 38, of Joplin, who managed the Webb City store, pleaded guilty to receiving and distributing misbranded drugs and was sentenced to a term of probation.
Under federal statutes, Travis and Jeremy Elliott are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These convictions are the result of a large-scale investigation by local, state and federal law enforcement agencies into the distribution of K2, the slang term for synthetic marijuana products. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the FDA Office of Criminal Investigations, IRS-Criminal Investigation, the Jasper County Drug Task Force, the Jasper County, Mo., Sheriff’s Department, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the South Central Drug Task Force, the Missouri State Highway Patrol, the Springfield, Mo., Police Department, the Newton County, Mo., Sheriff’s Department and the Greene County, Mo., Prosecuting Attorney’s Office.
Nixa Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Michael Wunderlee, 41, of Nixa, was sentenced by U.S. District Judge M. Douglas Harpool to 11 years and nine months in federal prison without parole. The court also sentenced Wunderlee to 10 years of supervised release following incarceration.
Wunderlee, who pleaded guilty on Sept. 8, 2014, admitted that he received and distributed child pornography over the Internet between May 13, 2010, and Feb. 25, 2012.
Federal agents from the National Park Service and the FBI executed a search warrant at Wunderlee’s residence as part of an investigation into another person’s use of a stolen government credit card number of a National Park Service employee. Wunderlee’s computer was seized and transported for forensic examination, which found approximately 139 videos and approximately 23 images of child pornography, including pre-pubescent victims.
Wunderlee admitted that he used file-sharing software to download the images and videos. The software automatically saved the downloaded images and videos to a share folder on his computer and made them available to be downloaded by others using the program.
Wunderlee was arrested on Sept. 30, 2013, and released on bond on Nov. 22, 2013, which included home detention and location monitoring. However, on or about Feb. 28, 2014, in order to avoid prosecution, Wunderlee absconded after cashing out his retirement account at Cox Hospital and leaving a note indicating he intended to commit suicide. On Aug. 6, 2014, FBI agents arrested Wunderlee at a home in Spotsylvania, Va.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the National Park Service.
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."
10 Area Residents Among 19 Defendants Indicted for Drug-trafficking ConspiraciesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 19 defendants have been indicted for their roles in related conspiracies to distribute methamphetamine, marijuana and cocaine in Boone County, Mo., and elsewhere.
Miguel Flores-Ramirez, 31, his wife, Kena Marie Flores-Ramirez, 31, and Nina Marie Maabrey, 36, all of Clark, Mo.; Francisco B. Pedroza, also known as “Paco,” 35, Adrian Guerra-Duarte, 28, Timothy Wiyrick, 64, Dustin Matthew Short, 30, Samantha Roseann Stone, 33, Carlos Rodolfo Aguilar, 35, and Shepel Maurice Davis, 39, all of Columbia, Mo.; Alfredo Tanguma, Jr., 36, and his sister, Lissette Tanguma, 33, both of La Monte, Mo.; Dustin Tyler Kinnard, 29, of Park Hills, Mo.; Natashaw Lynn Hughes, 43, and Gregory Lee Killebrew, 52, both of Malden, Mo.; Tommie Jason Lovelace, 32, and Tonee Nikkole Jarrett, 21, of Springfield, Ill.; and Robert Eric Eugene French, 34, and Lakhram Paul Khelawan, 32, addresses unknown, were charged in a 40-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Oct. 1, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of several defendants.
The federal indictment charges various defendants in five separate drug-trafficking conspiracies.
The federal indictment alleges that Miguel and Kena Flores-Ramirez, Guerra-Duarte, Khelawan, Davis and Mabrey participated in a conspiracy to distribute 500 grams or more of methamphetamine in Boone County and elsewhere from September 2013 to May 23, 2014.
The federal indictment alleges that Miguel and Kena Flores-Ramirez, Alfredo Tanguma, Guerra-Duarte, Wiyrick and Lissette Tanguma participated in a conspiracy to distribute 100 kilograms or more of marijuana in Boone County and elsewhere from September 2013 to March 2014.
The federal indictment alleges that Miguel Flores-Ramirez, French and Guerra-Duarte participated in a conspiracy to distribute 50 grams or more of cocaine in Boone County and elsewhere from January 2010 to June 14, 2014.
The federal indictment alleges that Miguel Flores-Ramirez, Short, Kinnard, Stone and Aguilar participated in a conspiracy to distribute marijuana in Boone County and elsewhere, beginning on an unknown date and continuing until Jan. 23, 2014.
The federal indictment alleges that Miguel Flores-Ramirez, Davis, Jarrett, Lovelace, Hughes and Killebrew participated in a conspiracy to distribute marijuana in Boone County and elsewhere, beginning on an unknown date and continuing until June 3, 2014.
In addition to the drug-trafficking conspiracies, various defendants are charged in eight counts of possessing marijuana with the intent to distribute, two counts of possessing methamphetamine with the intent to distribute and 25 counts of using a telephone to facilitate a drug-trafficking conspiracy.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the FBI, IRS-Criminal Investigation and the Missouri State Highway Patrol.
Two Springfield Residents Plead Guilty to Distributing Tons of MarijuanaRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., residents pleaded guilty in federal court today to their roles in a conspiracy that distributed thousands of pounds of marijuana in southwest Missouri.
Brian D. Hanson, 30, and Brenda Swearingin, 56, both of Springfield, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to the charges contained in a Nov. 6, 2013, federal indictment.
By pleading guilty today, Hanson and Swearingin admitted that they and co-defendant Sean Bond, 39, of Republic, Mo., and others participated in a conspiracy to distribute marijuana in Greene County, Mo., and elsewhere from April 1, 2010, to June 19, 2013.
Hanson admitted that he was responsible for transporting between 1,000 kilograms and 3,000 kilograms of marijuana into southwest Missouri. Swearingin pleaded guilty to distributing less than 50 kilograms of marijuana in the conspiracy and to illegally possessing a firearm in furtherance of a drug-trafficking crime. Bond pleaded guilty on Oct. 16, 2014.
Bond arranged for Hanson and others to pick up marijuana from individuals outside of Springfield, then transport the marijuana to Springfield for Bond to distribute to other persons. Hanson and Bond also traveled together to Texas to obtain marijuana that had been smuggled into the United States from Mexico.
Swearingin admitted that she purchased marijuana from Bond and distributed it to others. Swearingin admitted that she purchased pound amounts of marijuana from Bond each month for about two years. She received approximately 10.872 kilograms of marijuana from Bond during her involvement in the conspiracy. When law enforcement officers executed a search warrant at Swearingin’s residence, they discovered a Hefty Freezer bag that contained approximately 173 grams of marijuana under a mattress in the guest bedroom. They also found a loaded Taurus .22-caliber handgun in Swearingin’s purse.
In addition to the drug-trafficking conspiracy, Hanson and Bond each pleaded guilty to participating in a conspiracy to launder the proceeds of marijuana sales. For example, Hanson gave Bond a 2002 BMW 745i and a 1969 Chevrolet Chevelle to pay a drug debt. Hanson purchased a 2003 Ford Crown Victoria at an auto auction, using proceeds from the sale of marijuana. Hanson then used this vehicle to transport marijuana from Houston and Kansas City, Mo., to Springfield.
Bond also admitted that he purchased a Wellcraft 3200 Martinique boat (which he registered in his father’s name), in part with drug proceeds, and a 2007 Cadillac Escalade that he used to distribute marijuana to customers in the Springfield area. Bond also used drug proceeds to purchase a 2002 BMW 725i, a 2002 Firebird pro-mod race car, a 1968 Chevrolet Camaro, three go karts, a 2006 Haulmark trailer and a 2004 Ford F350. That property has been seized by law enforcement officers and is subject to be forfeited to the government.
Under federal statutes, Hanson and Bond are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Swearingin is subject to a sentence of up to five years in federal prison without parole for the drug-trafficking conspiracy and a mandatory minimum consecutive sentence of five years in federal prison for illegally possessing a firearm. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and COMET (the Combined Ozark Multi-jurisdictional Enforcement Team).
Mexican National Pleads Guilty to Distributing Meth After Attempt to Steal from Undercover OfficerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national pleaded guilty in federal court today to distributing methamphetamine and illegally possessing a firearm after he attempted to rob an undercover police detective during a drug buy and led authorities on a high-speed chase.
Luis Alberto Vasquez-Pena, 24, a citizen of Mexico residing in Kansas City, Mo., pleaded guilty before U.S. District Judge Dean Whipple to two counts of distributing methamphetamine and one count of being an illegal alien in possession of a firearm.
By pleading guilty today, Vasquez-Pena admitted that he intended to rob the undercover officer when he agreed to sell five ounces of methamphetamine for $4,500. Vasquez-Pena admitted that he sold the undercover officer methamphetamine on two occasions in June 2014, and agreed to sell five ounces of methamphetamine for $900 per ounce on Aug. 14, 2014.
According to today’s plea agreement, Vasquez-Pena met the undercover officer near the corner of St. John Avenue and Hardesty Avenue in Kansas City; he got into the officer’s vehicle and instructed the officer to drive to a house near East 9th Street and Bales Court in Kansas City. Vasquez-Pena asked the undercover officer for the money; the officer confirmed having the money but wasn’t going to pay without getting the methamphetamine. Vasquez-Pena explained that he would have to walk two or three houses up the street to get the drugs, and that the dealer would not let five ounces of methamphetamine “walk out the door” without getting paid first. The undercover officer gave Vasquez-Pena $4,500. He got out of the vehicle, walked north on Bales Court, got into his Dodge Durango (which was occupied by a woman) and immediately left the area.
Law enforcement officers attempted to stop the Durango, but Vasquez-Pena refused to stop and a high-speed chase ensued that eventually led into Kansas City, Kan. Officers briefly lost sight of the Durango but soon found it abandoned in a business parking lot. A few minutes later, federal agents discovered Vasquez-Pena hiding under a car in a nearby salvage yard. Officers also found the woman passenger in the salvage yard and recovered the $4,500 in pre-recorded buy money. Agents searched the Durango and found a loaded Ruger .45-caliber pistol and another loaded handgun concealed under the driver’s seat.
“I know the game,” Vasquez-Pena told the arresting officers, adding that he “should have shot” the undercover officer after taking the money.
Vasquez-Pena, who admitted that he was born in Mexico and is illegally in the United States, told officers that he could not get the five ounces of methamphetamine and intended to take the money from the undercover officer. Vasquez-Pena also admitted that he had traded an eight-ball of methamphetamine for the Ruger pistol two or three weeks earlier.
Under federal statutes, Vasquez-Pena is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 90 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Kansas City, Mo., Police Department.
St. Joseph Man Among 14 Defendants Indicted in $4 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that 14 defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than $4 million worth of methamphetamine and heroin in the St. Joseph, Mo., area and elsewhere.
Mario Alberto Yepez, 40, and Barbara Kay Tracy, also known as “Barbie,” 33, both of Elwood, Kan.; Messiah Edmundo Garcia, 30, of St. Joseph; Mario Enrique Morales, also known as “El Jeffe,” 63, Griselda Yepez-Garcia, 45, Jacquelyn Morales, 34, Manuela Maratinez-Morales, 69, and Enrique Morales, also known as “Henry,” 35, all of Laredo, Texas; Jose Luis Yepez, also known as “Joe,” 45, of Grand Island, Neb.; Cynthia Kaye Buboltz, 50, of Lewis, Iowa; Araceli Duran-Edeza, 20, of Bellflower, Calif.; Reyna Edeza, 26, of Los Angeles, Calif.; and Gracie Ann Edler, 47, and Richard S. Luther, 52, who are incarcerated on unrelated state charges, were charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Jan. 28, 2015. That indictment was unsealed and made public today upon the arrests and initial court appearances of several defendants.
The federal indictment alleges that 11 of the defendants (with the exceptions of Martinez-Morales, Edeza and Duran-Edeza) participated in a conspiracy to distribute methamphetamine and heroin between Jan. 1, 2011, and Jan. 27, 2015. The indictment alleges that conspirators distributed 80 kilograms of methamphetamine and three kilograms of heroin during the four-year conspiracy.
All of the defendants are charged with participating in a money laundering conspiracy during the same time frame. They allegedly conducted financial transactions that involved the proceeds of the drug-trafficking conspiracy in order to conceal the nature, source, location, ownership and control of those proceeds and to avoid federal bank reporting requirements. According to the indictment, cash obtained from drug sales was deposited into various bank accounts, or stored, or transported, in such a manner as to conceal its true nature, source, location, ownership and control and to avoid federal bank reporting requirements.
During the conspiracy, the indictment says, law enforcement cooperators paid cash for controlled substances, which was deposited into various banks. Cash deposits made in close proximity to where the drug sales occurred, the indictment says, were quickly withdrawn in Texas and California.
In addition to the drug-trafficking and money-laundering conspiracies, the indictment also charges Mario Yepez with being a felon in possession of firearms. According to the indictment, Yepez, who has a prior felony conviction, was in possession of an FHN .40-caliber semi-automatic handgun, a Spikes Tactical AR rifle, a Ruger 9mm handgun, a Dan Wesson Arms .357-caliber revolver, a stolen Cobra .380-caliber handgun, a stolen Hi-Point .45-caliber rifle, two Norinco SKS 7.62x39 rifles, a Smith & Wesson .38-caliber handgun and a Smith & Wesson .22-caliber pistol.
The indictment also charges Mario Yepez, Tracy, Garcia and Enrique Morales with aiding and abetting the use or possession of the same firearms in furtherance of a drug-trafficking crime.
The federal indictment contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $4,011,000. That is based on a conservative street price of $1,300 per ounce of methamphetamine and an overall conspiracy distribution of approximately 80 kilograms, and a street price of $3,500 per ounce of heroin and an overall conspiracy distribution of approximately three kilograms.
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 Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Grand Island, Neb., Police Department and the Grand Island, Neb., FBI Task Force.
Sister, Brother Plead Guilty to Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Kan., siblings have pleaded guilty in federal court to the armed robbery of an Excelsior Springs, Mo., bank, which was followed by a high-speed chase until the robbers’ vehicle crashed.
Virginia Lynn Spencer, 29, and her brother, Charles Ralph Spencer, 25, both of Kansas City, Kan., pleaded guilty in separate appearances before U.S. Chief District Judge Greg Kays on Monday, Feb. 2, 2015, to the charges contained in a June 10, 2014, federal indictment.
Virginia and Charles Spencer each pleaded guilty to one count of aiding and abetting an armed bank robbery and one count of aiding and abetting the possession of a firearm in furtherance of a crime of violence. Co-defendant Steven Dale Robinson, 23, also of Kansas City, Kan., pleaded guilty to aiding and abetting an armed bank robbery on Nov. 13, 2014.
By pleading guilty, all three defendants admitted to stealing $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on May 23, 2014.
Before robbing the bank, in order to help disguise themselves for the robbery, the defendants went to a K-Mart store in Independence, Mo., where they purchased black Missouri t-shirts, a package of gardening gloves, head coverings, sunglasses, black spray dye for Charles Spencer’s facial hair and electrical tape for Virginia Spencer’s shoes. They cased banks in Polo, Braymer and Richmond, Mo., before deciding to rob the Bank Midwest in Excelsior Springs.
Prior to entering the bank, Virginia Spencer provided Charles Spencer with a loaded Rossi .32-caliber revolver. Robinson, the driver, backed the vehicle up near the bank’s entrance in order to facilitate the getaway.
Virginia and Charles Spencer entered the bank at about 5:30 p.m. Charles Spencer stood in the lobby and pointed a Rossi .32-caliber revolver in the air with his finger on the trigger. Charles Spencer displayed the revolver during the entire course of the robbery. They yelled at bank employees to sit on the floor. Virginia Spencer then jumped over the middle teller counter and began going through the teller drawers, while Charles Spencer stood near the teller station, revolver displayed. Virginia Spencer took money out of the teller drawers, placed it in a clear trash bag, and jumped back over the counter.
Both robbers ran from the bank, with Virginia Spencer saying, “Have a nice day” on her way out. They got into the vehicle being driven by Robinson and sped out of the parking lot.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. As the bank robbers’ vehicle left the Bank Midwest parking lot it narrowly missed the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. Attempting to escape from pursuing law enforcement officers, Robinson drove approximately 85 miles per hour while going southbound (the wrong way) in the northbound lane of traffic. Robinson ran traffic stops, struck a concrete barrier, and continued evading police officers, driving over 50 miles per hour through residential neighborhoods. After turning into oncoming traffic on Missouri Highway 291, Robinson continued to speed at 65 miles per hour, eventually reaching approximately 90 miles per hour. During this chase, Charles Spencer threw the firearm out the car window. Eventually, Robinson was traveling at such a high rate of speed that while attempting to round a corner, he lost control of the vehicle and struck a tree head on near Kings Highway and Dam Road in Liberty, Mo. Virginia and Charles Spencer were both injured in the crash and were transported to a nearby hospital.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle. Police recovered the firearm near the crash site.
Under federal statutes, Virginia and Charles Spencer are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000. Robinson is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.
Kimberling City Physician Sentenced to Two Years for Failing to File Tax ReturnsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kimberling City, Mo., man who worked as an emergency room physician was sentenced in federal court today for failing to file tax returns despite earning hundreds of thousands of dollars in income each year.
Phillip Edward Psaltis, 65, of Kimberling City, was sentenced by U.S. Magistrate Judge David P. Rush to two years in federal prison without parole. The court also ordered Psaltis to pay $1,581,594 in restitution to the IRS, the Missouri Department of Revenue and the Oklahoma Department of Revenue.
Psaltis worked as an emergency room physician at Lawton Indian Hospital in Lawton, Okla., in 2011 and at Claremore Indian Hospital in Claremore, Okla., in 2010. Psaltis worked as an emergency room physician at Barton County Memorial Hospital in Lamar, Mo., from 2006 to 2009 and at Pike County Memorial Hospital in Louisiana, Mo. in 2008 and 2009.
On Oct. 9, 2014, Psaltis pleaded guilty to two counts of failing to file an income tax return. Psaltis admitted that he has failed to file federal income tax returns since 2002. The two specific charges to which Psaltis pleaded guilty relate to his failure to file a federal tax return for 2009, when he earned approximately $450,664, and for 2010, when he earned approximately $433,339.
Psaltis admitted that he failed to file federal income tax returns for 2009, 2010 and 2011. Psaltis’s unreported income during those years totaled $1,204,786 and the total tax loss was $377,022. Psaltis also owes $551,434 in outstanding federal taxes for the years 2002 through 2008. Because Psaltis did not file his 2012 tax return, it is estimated that he will owe approximately $128,109 in tax liability for 2012.
In addition to the federal taxes owed, Psaltis owes $62,259 in Missouri and Oklahoma state income tax for the years 2009, 2010 and 2011. Psaltis’s medical license was suspended three times – on Dec. 14, 2009, on July 16, 2012, and on June 11, 2013 – for delinquency of Missouri state taxes or failure to file state income tax returns.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Miller Man Indicted for Shooting at AirplaneRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Miller, Mo., man has been indicted by a federal grand jury for shooting at an airplane.
David Leroy Dickenson, 38, of Miller, was charged in an indictment returned under seal by a federal grand jury in Springfield, Mo., on Jan. 20, 2015. That indictment was unsealed and made public following Dickenson’s arrest and initial court appearance. Dickenson remains in federal custody pending the court’s ruling on a detention motion.
The federal indictment alleges that Dickenson attempted to set fire to, damage, destroy, disable and wreck a 1997 S2R 510 Thrush aircraft on Dec. 3, 2014. Dickenson allegedly shot a firearm at an aircraft engaged in crop dusting then attempted to dispose of the firearm to prevent its discovery by law enforcement.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI.
Former KC Man Sentenced for Producing Child Porn, Possessing Thousands of ImagesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., man who owned a massive collection of child pornography and who victimized one child whose images of sexual assault were shared online and have been identified in thousands of other child pornography cases across the country was sentenced in federal court today.
Paul Leslie Kannarr, 59, formerly of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 10 years in federal prison without parole. The court ordered the federal sentence to be served concurrently with Kannarr’s state sentences for two child pornography convictions.
On June 4, 2014, Kannarr pleaded guilty to six counts of producing child pornography, two counts of posting a notice online that offers to display or distribute child pornography, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Kannarr admitted that he used a minor, identified as “Jane Doe,” to produce child pornography on six separate occasions between Dec. 19, 1999 and Sept. 23, 2000. Kannarr advertised the availability of some of those images in Internet newsgroups and distributed images of the victim over the Internet. The National Center for Missing and Exploited Children (NCMEC) confirmed that, as of June 2014, more than 55,000 images of Kannarr’s principle victim have been detected in almost 7,000 cases reported to NCMEC. Those photos are still being distributed on the Internet more than a decade after their production.
Kannarr also possessed thousands of pornographic images and videos of a multitude of additional child victims. The FBI forensic examination of Kannarr’s electronic media yielded approximately 65,000 images of child pornography unrelated to the principle victim.
According to court documents, Kannarr also admitted he had sexually exploited the principle minor victim when the child was 6 through 13 years of age. Kannarr apparently was preparing to use hypnosis to continue to persuade his victim to expose herself in photographs for him and to possibly engage in more intimate sexual contact. There was evidence that he considered programming his son and the son’s adolescent friends to engage in sexual activity for Kannarr’s photographic exploitation. Court documents also report that Kannarr secretly filmed another minor girl and her friend in the shower.
Missouri Cases: 01CR82152-01 and 7CR101000603
Kannarr is currently serving a 30-year sentence in state prison for two child pornography convictions.
On Jan. 24, 2001, Kannarr was discovered to have taken a small number of sexually explicit Polaroids of the same victim as in the federal case while residing in Platte County and in Clay County, Mo. A subsequent search of Kannarr’s living quarters resulted in the recovery of multiple electronic media containing additional images. On Feb. 21, 2001, Kannarr was charged by Clay County with production of several of the images of the principle victim taken in its jurisdiction. A month after that, Platte County charged Kannarr with the production of the Polaroid images of the principle victim taken in its jurisdiction.
On May 9, 2001, Kannarr pleaded guilty in Clay County to the production of two child pornography images taken in 1995. On June 21, Kannarr was sentenced to 14 years for these offenses. A few days later, on June 23, 2001, Kannarr pleaded guilty to the photos taken of his victim in 1998 in Platte County, and was sentenced on the same day to 30 years’ incarceration.
The Platte County sentence ran concurrently with the Clay County sentence; Kannarr thus received a total sentence of 30 years for two separate state cases in 2001. Kannarr had a state parole hearing in November 2008 (after serving less than one-fourth of his sentence) and another state parole hearing (which wasn’t held due to the federal case) scheduled for November 2014 (after having served less than half of his sentence).
The FBI’s investigation of all of the electronic media recovered from Kannarr’s residence began after Kannarr had been sentenced on his state cases.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department and the FBI 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 Woman Sentenced for $576,000 Mortgage Fraud, Embezzlement SchemesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former branch manager of a Fulton, Mo., company has abeen sentenced in federal court for a $576,000 mortgage fraud and embezzlement scheme at the title company where she was employed.
Terri Lynn Johnson, 50, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, Jan. 28, 2015, to two years and six months in federal prison without parole. The court also ordered Johnson to pay $405,653 in restitution.
Johnson was hired for a clerical position with Guaranty Land Title Company in 2001, and was eventually promoted to become the branch manager of the Fulton, office after the company was acquired by Landchoice Company, LLC. She remained in that position until her termination on Dec. 4, 2008.
On July 11, 2013, Johnson pleaded guilty to bank fraud and money laundering. Johnson admitted that she engaged in a $300,000 mortgage fraud scheme while she was employed as the Fulton branch manager. Johnson refinanced the mortgage on her residence twice. As a result of the false and fraudulent information provided by Johnson, two banks approved mortgage loans for $175,000 in 2007 and for $125,000 in 2008. The combination of those two loans clearly exceeded the appraised value of Johnson’s residence, which was used to secure both loans.
Johnson also admitted that she embezzled $276,173 from Landchoice. Johnson diverted income checks from Landchoice into a bank account that had been opened for Guaranty Land Title Company and which her employer didn’t know existed. She also diverted escrow funds which had been obtained by Landchoice for loan closings into that account.
Johnson then wrote checks to herself which she deposited into her personal checking account. Johnson wrote checks totaling approximately $59,465 payable to herself or to cash. Johnson also wrote checks to Johnson Gardens (her personal business) totaling approximately $12,500. Johnson also wrote checks believed to be for her personal use totaling approximately $19,916. In addition, Johnson utilized a debit card issued for the account, which she used to access $184,292 from that account for her personal benefit. The total personal benefit realized by Johnson from this embezzlement scheme is estimated to be approximately $276,173.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, IRS-Criminal Investigation, the Fulton, Mo., Police Department, the Missouri State Highway Patrol and the Missouri Department of Insurance.
Kentucky Man Charged with Carjacking, Victim Forced to Travel Across State Before EscapingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today 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 has been arrested and charged in federal court.
Robert C. Caldwell, 25, of Danville, was charged in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo., on Saturday, Jan. 24, 2015. Caldwell was arrested in Kentucky on Tuesday, Jan. 27, 2015, following a pursuit by officers with the Kentucky State Police and the Lincoln County, Ken., Sheriff’s Department.
The federal criminal complaint charges Caldwell with one count of being a felon in possession of a firearm, one count of carjacking and one count of using a firearm during a violent crime.
According to an affidavit filed in support of the federal criminal complaint, Caldwell and an accomplice approached a 67-year-old Kansas City, Mo., man at about 5:30 a.m. Thursday, Jan. 22, 2015, as he was leaving his home. They allegedly threatened the victim at gunpoint to give them money and a vehicle. He was forced to hand over his keys to his van, his wallet and cash. The victim was ordered into his garage, the affidavit says, where 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 was then ordered into his van, a 1998 Chevrolet C/K 1500.
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. According to the affidavit, the carjackers 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.
They continued to drive and stopped at a drive-through restaurant, the affidavit says, 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 allegedly 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, the affidavit says, 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, according to the affidavit.
They began driving again, the affidavit says, 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., the affidavit says, 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 Friday, Jan. 23, 2015, in Nelson County, Ken. The Nelson County Sheriff’s deputy who recovered the vehicle recognized Caldwell from the surveillance photographs and video. A captain with the Boyle County, Ken., Sheriff’s Department also recognized Caldwell. An anonymous call to the TIPS Hotline also identified Caldwell as one of the carjackers. Caldwell’s father contacted law enforcement authorities on Friday, Jan. 23, 2015, and informed them that he recognized his son in the surveillance video and photographs.
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 David Barnes. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Joplin Man Sentenced to 22 Years for Meth Conspiracy, FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in Jasper County, Mo., and for illegally possessing firearms.
Jose DeLeon Cazares, 29, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 22 years in federal prison without parole.
On Aug. 5, 2014, Cazares pleaded guilty to participating in a conspiracy to distribute methamphetamine from July 16, 2012, to June 14, 2013, and to possessing firearms in furtherance of a drug-trafficking crime.
Law enforcement authorities noticed a significant increase in the availability of methamphetamine in the Joplin area beginning in June 2012. A confidential source stated there was a drug-trafficking organization in Joplin that was importing very pure methamphetamine from Mexico into the United States, then transporting it by automobile to Joplin.
Cazares admitted that he was the local leader of the drug-trafficking organization. Starting in July 2012, federal and local agents conducted numerous undercover buys with various co-defendants in this conspiracy.
A cooperator told law enforcement investigators that he traded stolen firearms and other stolen items to Cazares in return for methamphetamine. He stated that he had traded 10-to-12 firearms to Cazares between September 2012 and July 2013. Cazares gave him between one to one-and-a-half grams of methamphetamine per firearm. Cazares then took the firearms to Mexico. He also traded stolen flat-screen TV's, power tools and computer items (like laptops and Ipads) to Cazares for methamphetamine.
On June 14, 2013, members of the Joplin Police Department SWAT team and members of various federal agencies entered Cazares’s home. They found a box of Winchester 20-gauge 2-3/4-inch rifled slug hollow point ammunition in the bedroom. Cazares was under state charges at the time and prohibited from receiving and possessing ammunition. Officers also found a drug ledger in the living room on the television stand, and multiple Moneygram receipts in his vehicle.
His mother and father, Gerardo Hernandez Cazares, Sr., 53, and Leticia Cazares, 53, as well as his brothers, Gerardo Cazares Jr., 30, and Eric Eziquel Cazares, 32, all of Joplin, are among the co-defendants who have pleaded guilty in this case.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Bureau of Indian Affairs, the Missouri State Highway Patrol, the Kansas Bureau of Investigation, the Jasper County Drug Task Force, the Joplin, Mo., Police Department and the Miami, Okla., Police Department.
Georgia Man Sentenced for Stealing Deceased Persons' Identities to Gain $2.3 Million in State Tax RefundsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Georgia man was sentenced in federal court today for a wire fraud scheme in which he used the identity information of deceased persons to obtain more than $2.3 million in tax refunds from several states.
Sirhon Rivers, also known as “Ron,” 40, of Georgia, was sentenced by U.S. District Judge Brian C. Wimes to eight years and six months in federal prison without parole. The court also ordered Rivers to pay $2,358,612 in restitution.
On Sept. 14, 2014, Rivers pleaded guilty to one count of wire fraud, one count of aggravated identity theft, one count of conspiracy to commit money laundering and one count of conspiracy to commit wire fraud and aggravated identity theft.
Rivers admitted that he unlawfully obtained $547,000 from the Missouri Department of Revenue from January 2008 to August 2012 by filing fraudulent tax returns. Rivers used the same scheme in others states – including Kansas, Alabama, Arizona, Connecticut, Delaware, Georgia, Idaho, Louisiana, Michigan, Minnesota, New York, North Carolina, North Dakota, Oklahoma, Rhode Island and Virginia – to unlawfully acquire a total of $2,365,617 in fraudulent state tax refunds.
Rivers obtained personal identification information – including names, Social Security numbers, and dates of birth – from deceased persons. He submitted state tax returns using that information, adding false and fraudulent information such as employment and wages earned. State tax returns were submitted electronically, with the refunds electronically transferred to bank accounts that Rivers opened at several financial institutions.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Missouri Department of Revenue Criminal Tax Investigation Bureau.
Three Men Sentenced for Fraud Scheme That Used Homeless to Cash Counterfeit ChecksRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three men have been sentenced for their roles in a bank fraud conspiracy that used homeless men to cash counterfeit payroll checks at banks in the Kansas City area.
More than $400,000 in counterfeit checks was passed in the Kansas City area over the course of a few months in late 2012 and early 2013. Nationwide, more than $8 million in counterfeit checks has been passed by various crews that travel across the country to steal business mail, create counterfeit payroll checks and recruit homeless men to cash the counterfeit checks.
Truly Matthews, 48, and Calvin Almond, 47, both of Atlanta, Ga., and Gary Merritt, 55, of Kansas City, Kan., (formerly of Atlanta) were sentenced by U.S. Chief District Judge Greg Kays on Monday, Jan. 26, 2015. Matthews was sentenced to 10 years and four months in federal prison without parole and ordered to pay $62,861 in restitution. Merritt was sentenced to five years in federal prison without parole and ordered to pay $239,092 in restitution. Almond was sentenced to two years and 11 months in federal prison without parole and ordered to pay $57,772 in restitution.
Each of the three men pleaded guilty to participating in a conspiracy to commit bank fraud from Dec. 21, 2012, to Feb. 1, 2013.
Matthews, Merritt and Almond admitted that they and the other conspirators recruited homeless men to cash a total of $233,728 in counterfeit checks in December 2012 and January 2013. They unsuccessfully attempted to cash an additional $59,344 in counterfeit checks.
Matthews’s role in the conspiracy was to assist in the printing of counterfeit payroll checks that he knew would be passed by homeless men at banks in Kansas City. Merritt and Almond found homeless men in Kansas City and recruited them to pass counterfeit payroll checks at banks in Kansas City.
Almond was first recruited to the bank fraud scheme in 2002, when he was arrested and served prison time for his role in the scheme. In January 2013, Almond was again recruited into the scheme and agreed to act as a driver on road trips to Kansas City, Mo., and Lincoln, Neb., knowing that the purpose of these trips was to recruit homeless men to pass counterfeit checks. When conspirators became suspicious about police surveillance in Kansas City, they traveled to Lincoln to continue the same scheme.
Co-defendants Anthony Bernard Lowe, 54, and Marcus Bryant, 34, both of Atlanta, Derrick Nate Andrews, 23, of Decatur, Ga., and Howard Youngblood, 41, and Michael Lee McWilliams, 54, both of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy. Lowe was sentenced to four years and four months in federal prison without parole and ordered to pay $233,728 in restitution. Andrews was sentenced to time served and ordered to pay $57,772 in restitution. Youngblood was sentenced to time served and ordered to pay $10,693 in restitution.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the U.S. Postal Inspection Service, the Kansas City, Mo., Police Department, the Leawood, Kan., Police Department and the Atlanta, Ga., Police Department.
Sex Offender Pleads Guilty to 'Sex Tourism,' Victimized Five Filipino ChildrenRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a prior sex offender pleaded guilty in federal court today to sexually abusing five separate child victims in the Philippines.
Kenneth Gaylord Stokes, 70, a U.S. citizen who resided near the city of Cebu in the Philippines, pleaded guilty before U.S. District Judge M. Douglas Harpool to five counts of engaging in illicit sexual conduct in foreign places.
Stokes has been in federal custody since his arrest on Dec. 3, 2012 and is being held without bond. Stokes has a prior conviction for the statutory rape of a 7-year-old child in the state of Washington.
In July 2012, a federal agent located a Craigslist advertisement from Stokes that offered photography services in the Philippines. Stokes and the agent communicated via e-mail for several months, during which time Stokes e-mailed to the agent photos of juvenile females, some of whom were in sexually explicit poses. The agent expressed his interest in meeting Stokes, who encouraged the agent to visit and indicated that he would help facilitate sexual liaisons.
On Dec. 3, 2012 the agent met Stokes at his residence in the Philippines. Stokes, who showed the agent a laptop computer with multiple images of child pornography, was arrested.
Investigators seized Stokes’ computers and conducted a forensic examination. They were able to determine the identities of five minor females (identified as Jane Doe #1, #2, #3, #4, and #5) who later told law enforcement officers that Stokes paid them to pose for the sexually explicit photos.
Under federal statutes, Stokes is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $250,000, on each of the five counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Mexican National Sentenced for Meth, Illegal ReentryRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for his role in the conspiracy to distribute methamphetamine and for illegally reentering the United States after having been deported.
Bardomiano Jungo, 36, a citizen of Mexico, was sentenced by U.S. District Judge Gary A. Fenner to 10 years and one month in federal prison without parole.
A law enforcement officer encountered co-defendant Jose Angel Loaiza, 27, of Lamirada, Calif., at the Greyhound bus station at 1101 Troost Ave., Kansas City, Mo., on March 26, 2013. Loaiza was carrying three bundles containing a total of approximately 1.4 kilograms of pure methamphetamine inside a red backpack. While the officer was speaking to him, Loaiza’s cell phone rang and he answered in Spanish, “I’m here.”
The officer who arrested Loaiza told the other officers that someone was probably waiting in the parking lot to pick up Loaiza. Officers saw Jungo waiting in a Ford Explorer, then start to drive out of the parking lot without picking anyone up. An officer stopped Jungo and began to question him; Jungo’s cell phone rang and displayed the same Long Beach, Calif., telephone number that had called Loaiza a few minutes earlier.
Jungo identified himself under a false name and showed law enforcement officers a Kansas driver’s license and Social Security card with that name. That Social Security number, however, belongs to an Inglewood, Calif., resident.
After being convicted in Jackson County Circuit Court of possession of a controlled substance with intent to distribute, Jungo was deported from the United States on March 20, 2002. Jungo admitted that he was illegally in the United States.
Loaiza was sentenced to seven years and three months in federal prison without parole after pleading guilty to his role in the conspiracy.
This case was prosecuted by Assistant U.S. Attorney Justin Davids and Special Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of Inspector General.
KC Woman Sentenced for Tax Fraud Scheme, Stealing Clients' RefundsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for a tax fraud scheme in which she stole portions of her client’s inflated tax refunds.
Dinette Kay Cadenhead, also known as Kay Taylor, 47, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 18 months in federal prison without parole. The court also ordered Cadenhead to pay $14,082 in restitution to the Internal Revenue Service, which represents the amount Cadenhead skimmed from the inflated tax refunds of nine of her clients.
On July 16, 2014, Cadenhead pleaded guilty to the theft of public money. Cadenhead admitted that she prepared federal income tax returns for clients containing material false and fraudulent claims. Cadenhead, working at her office in Raytown, Mo., or from her residence, assisted at least 12 individuals to file at least 29 false and fraudulent income tax returns for the tax years 2008 through 2010. The tax loss associated with those false returns is $109,627. The aggregate tax loss, including relevant conduct is $134,237.
Cadenhead admitted that she utilized false deductions to increase her clients’ refunds. The false entries included fraudulent charitable deductions, medical expenses, accounting expenses, attorney expenses, unreimbursed employee expenses and other expenses. She also included false IRA deductions on 18 of the returns. She reported net business losses, false energy credits and fraudulent dependents for some clients. Cadenhead electronically filed many of the returns from her home computer, but indicated the returns were self-prepared.
Cadenhead charged her clients a return preparation fee of between $65 and $600 per return. However, without the knowledge of nine of her clients, Cadenhead diverted a portion of the fraudulent refund into her own bank account, which increased the amount she actually received for each return. Cadenhead directed over $14,000 into her bank accounts by splitting her clients’ refunds without their knowledge or permission.
The specific charge to which Cadenhead pleaded guilty is related to her unauthorized splitting of her clients’ refunds without their knowledge or permission. Cadenhead admitted that she stole portions of her clients’ inflated tax refunds, totaling $14,082, between Feb. 12, 2010, and March 14, 2012.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue Criminal Tax Investigation Bureau.
Former Waldo Chiropractor Sentenced for $3 Million Medicare FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a Kansas City, Mo., clinic was sentenced in federal court today for a $3 million Medicare fraud scheme.
Michael Kelly Miller, 59, of Temple Terrace, Fla., formerly the owner of Waldo Rehabilitation Health & Wellness in Kansas City, Mo., was sentenced by U.S. Chief District Judge Greg Kays to 15 months in federal prison without parole. The court also ordered Miller to pay $879,582 in restitution to Medicare.
On April 29, 2014, Miller pleaded guilty to health care fraud for submitting Medicare claims for nerve block injections that were not medically necessary.
Miller was a licensed chiropractor and the owner of Brookside Health Services, doing business as Waldo Rehabilitation Health & Wellness at 7337 Broadway, Kansas City, during the time period of February 2009 to December 2011. He later practiced at Miller Clinic for Optimal Health in Temple Terrace. Under the terms of his plea agreement, Miller has surrendered his chiropractic license.
Miller admitted that he submitted claims to Medicare for nerve block injections that were false and fraudulent because the nerve block injections were not medically indicated and necessary for the patients’ health per Medicare coverage guidelines. Between February 2009 and December 2011, the clinic billed Medicare approximately $3,083,454, and Medicare paid the clinic approximately $879,582 for nerve block injections.
Beginning in 2009, the clinic shifted its focus from primarily providing chiropractic services to purportedly diagnosing and treating neuropathy. This shift in focus was due, in part, to information Miller received from a third party promoting a new, “cutting edge” treatment for neuropathy, which included nerve block injections. At the time, Medicare had no specific coverage guidelines regarding the use of nerve block injections for peripheral neuropathy. Miller did not investigate or inquire whether Medicare considered nerve block injections to be medically indicated and necessary for patients experiencing neuropathy.
Miller’s patients typically received nerve block injections, anodyne infrared light and electrical stimulation therapies two or three times per week for four to eight weeks. The clinic’s purported treatment of neuropathy was not supported by medical research studies or peer-reviewed medical publications, and would be considered an experimental or investigational treatment or alternative medicine.
During this time, most of the clinic’s patients were Medicare beneficiaries, and most of the clinic’s revenues were received from Medicare. Medicare will not cover experimental or investigational procedures and treatments or alternative medicine. Miller was aware of these Medicare requirements.
This case was prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Daniel M. Nelson. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.
Columbia Man Sentenced to 20 Years for Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man who used a false identity as a woman to trick seven minor victims, whom he knew through his involvement in the Boy Scouts of America, was sentenced in federal court today for producing, receiving and distributing child pornography.
Ian Francis Burow, 25, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to 20 years in federal prison without parole. The court also sentenced Burow to serve the rest of his life on supervised release following his prison term.
Burow, who pleaded guilty on Feb. 3, 2014, admitted that he used the alias “Sarah McGee” to communicate online (through Facebook, Skype and Yahoo) and via cell phone with several Boy Scouts, ranging in age from 14 to 17. Burow tricked the minor victims into sending him pornographic photos of themselves in inappropriate poses, or make videos or live broadcast themselves engaged in sexually explicit behavior over the Internet (through Skype or a Windows movie media attachment).
Burow sent the victims photos of a woman (claiming it was “Sarah McGee”) in various poses, including nudity, to encourage the victims to send similar photos. Once he received victims’ photos and movies, he frequently distributed some of them to one of the minor victims and to others. He also sent photos of three of the minor victims to a fourth minor victim.
Burow, who was also a Boy Scout, told persons asking about “Sarah McGee” that he knew her, that she was a good friend and that she lived in the same housing complex. In fact, she did not exist.
According to court documents, witnesses saw Burow carrying and displaying nude photos of young boys on his phone, and at least one caught him in an inappropriate communication over the Internet. When confronted by this person, Burow falsely claimed he was working for a task force investigating Internet predators. He suggested to her that he was assisting law enforcement in its efforts to capture persons who were predators of young people.
Law enforcement investigators identified many persons (not all of whom were minors) who were solicited by Burow to produce photos and videos of themselves engaging in sexually explicit conduct and send them to “Sarah McGee.” Not all of these persons sent the requested materials, but many did.
Burow pleaded guilty to seven counts – involving six different victims, ages 14 through 17 – of receiving and distributing child pornography between Dec. 27, 2010, and Aug. 1, 2011. Burow also pleaded guilty to one count of producing child pornography on Oct. 14, 2011, when he used a 15-year-old victim to engage in sexually explicit conduct, which was transmitted live over the Internet by using Skype.
Burow must forfeit to the government any property used to commit the offenses, including an Apple iPad, a laptop computer, an Apple iTouch, a Blackberry Curve, two external hard drives and other items.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Sentenced for Crack CocaineRead 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 crack cocaine to distribute.
James C. Allen, 52, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 10 years in federal prison without parole.
On Sept. 22, 2014, Allen pleaded guilty to possessing crack cocaine with the intent to distribute. Allen admitted that he was carrying 3.8 grams of crack cocaine in one of his boots, where it was packaged in over 30 separate plastic baggies for sale. Allen was arrested at a park located at 918 E. Ninth Street on July 30, 2013. At the time of his arrest, Allen also was in possession of an SCCY 9mm pistol.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Kansas City, Mo., Police Department.
17 KC-Area Defendants Among 26 Indicted for $16 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 26 defendants have been indicted in a $16 million drug-trafficking conspiracy that involved smuggling large amounts of methamphetamine, cocaine and heroin from Mexico for distribution in the Kansas City, Mo., metropolitan area.
Operation Signed and Sealed was a two-year, multi-agency investigation into a drug-trafficking organization that sold over 700 pounds of methamphetamine, 250 kilograms of cocaine and multiple kilograms of heroin in the Kansas City metropolitan area, with an estimated total value of more than $16 million.
Jose Ramon Soto-Garcia, also known as “Monky,” “Mon,” and “Ramon Del Monte,” 27, Jesus Hernandez-Mujica, also known as “Chenton,” 32, Ricardo Hernandez-Mujica, also known as “Pollo,” 29, Maurio Belgrave, 31, Nefeg Isaac Aguilar-Valle, 27, Alejandro Salas, also known as “Oliver Echeverry-Flamenco” and “Panocha,” 30, Sergio Flores, 43, Sylvia Marron, 37, and Ivan Orion Rueda-Simental, 22, all of Kansas City, Mo.; Missael Guadalupe Soto-Vejar, also known as “Missa,” “Narizon,” and “Flaco,” 26, and Dennys Eliceo Sermeno-Campos, 27, both of Independence, Mo.; Aurelio Jimenez-Cimental, 31, Iriarte Tadeo-Soto, also known as “Tantan,” 24, Antonio Arroyo-Cardenas, also known as “Cholo,” 30, and Jose Gabriel Bernardo-Vasquez, 32, all of Kansas City, Kan.; Rosalia Avila, also known as “Rosalia Diaz” and “Rosalia Flores,” 27, of Overland Park, Kan.; Luis Miguel Lopez, also known as “Tito,” 29, of Shawnee, Kan.; Gilberto Castillo-Soto, 38, of Culiacan, Sinoloa, Mexico; Victor Manuel Castillo-Soto, 40, and Aurelia Castillo, 37, both of Van Nuys, Calif.; Jose Carlos Zazueta-Valenzuela, 26, Francisco Alvarado-Soto, 28, and Monica Soto-Garcia, 29, all of Sun Valley, Calif.; Frankie Eleazar Perez, 32, of Madera, Calif.; Oscar Alberto Lopez-Perez, 32, of Medellin, Colombia; and Myrna Nora Saenz, 33, address unknown, were charged in an 11-count indictment returned under seal by a federal grand jury on Dec. 18, 2014. That indictment was unsealed and made public following the arrests and initial court appearances of several defendants.
Jose Soto-Garcia, Jesus Hernandez-Mujica, Ricardo Hernandez-Mujica, Rueda-Simental, Soto-Vejar, Jimenez-Cimental, Tadeo-Soto, Arroyo-Cardenas, Gilberto Castillo-Soto, Victor Castillo-Soto, Zazueta-Valenzuela, Alvarado-Soto and Monica Soto-Garcia are all citizens of Mexico. Aguilar-Valle is a citizen of Honduras. Sermeno-Campos is a citizen of El Salvador.
The federal indictment alleges that all 26 defendants participated in a conspiracy to distribute 50 grams or more of methamphetamine, five kilograms or more of cocaine and one kilogram or more of heroin from June 2013 to June 2014.
According to the indictment, the drugs were transported from Mexico by Gilberto Castillo-Soto to California and then transported or shipped by his brother, Victor Castillo-Soto, and Zazueta-Valenzuela to Kansas City, Mo. Allegedly aiding in the California portion of the drug-trafficking operation were Monica Soto-Garcia (Zazueta-Valenzuela’s wife and Ramon Soto-Garcia’s sister), Aurelia Castillo (Victor Castillo-Soto’s wife) and Perez. In addition to transporting the drugs themselves, conspirators also paid couriers to deliver drugs to the Kansas City area.
The drugs arrived at the residences of co-conspirators, the indictment says, such as Aguilar-Valle, then were picked up by Ramon Soto-Garcia. Ramon Soto-Garcia, along with Missael Soto-Vejar, allegedly distributed the drugs to other members of the conspiracy, including Aurelio Jimenez-Cimental, brothers Jesus and Ricardo Hernandez-Mujica, Antonio Arroyo-Cardenas, Alejandro Salas, Dennys Sermeno-Campos, Jose Bernardo-Vasquez, Ivan Rueda-Simental and Iriarte Tadeo-Sosa. These individuals allegedly supplied drugs to their own customers. Because Ramon Soto-Garcia did not communicate well in English, the indictment says, he employed his girlfriend, Rosalia Avila, to help translate for him and also to transfer funds to pay for the narcotics.
The money from the drug sales was transferred back to California in a number of ways, according to the indictment, such as shipments in computer towers by Dennys Sermeno-Campos and the electronic transfer of funds by Rosalia Avila. Once in California, the indictment says, the money would be physically transported to Mexico by Francisco Alvarado-Soto.
For example, the indictment alleges that Dennys Sermeno-Campos attempted to ship $76,000 that had been wrapped in eight bundles in duct tape, carbon paper and dryer sheets and concealed within a hollowed-out computer tower from Raytown, Mo., to Sun Valley, Calif., on July 15, 2013. According to the indictment, federal agents also seized a total of approximately $180,000 that was similarly hidden in two computer towers on Sept. 10, 2013. They also seized $80,025 that was hidden inside a microwave oven on Sept. 17, 2013, and $70,000 that was hidden inside a CD player on Sept. 26, 2013.
The indictment also alleges that Aurelio Jimenez-Cimental arranged a meeting between an undercover law enforcement officer of the Jackson County Drug TaskForce and Oscar Lopez-Perez and Victor Castillo-Soto to discuss moving money to California. During that Oct. 4, 2013, meeting, Oscar Lopez-Perez and Victor Castillo-Soto allegedly attempted to give the undercover officer $350,000 to transport.
In addition to the drug-trafficking conspiracy, several defendants are also charged with participating in a money-laundering conspiracy. The indictment alleges that Jose Soto-Garcia, Gilberto Castillo-Soto, Victor Castillo-Soto, Jose Zazueta-Valenzuela, Missael Soto-Vejar, Oscar Lopez-Perez, Aurelio Jimenez-Cimental, Francisco Alvarado-Soto, Rosalia Avila, Dennys Sermeno-Campos and Aurelia Castillo participated in a conspiracy to conduct financial transactions that involved the proceeds of the unlawful drug-trafficking activity to promote the activity; these transactions allegedly were designed in whole or in part to conceal the nature, the location, the source, the ownership and the control of the proceeds.
In addition to the conspiracies, Jimenez-Cimental is charged with two counts of distributing cocaine, two counts of distributing 50 grams or more of methamphetamine and one count of distributing heroin. Aguilar-Valle and Salas are also charged with one count of possessing 50 grams or more of methamphetamine with the intent to distribute.
Hernandez-Mujica is also charged with one count of possessing 50 grams or more of methamphetamine with the intent to distribute and with one count of possessing a firearm in furtherance of a drug-trafficking crime.
Aguilar-Valle is also charged with one count of being an illegal alien in possession of a firearm. The indictment alleges that Aguilar-Valle was in possession of a Taurus .45-caliber pistol on June 18, 2014.
The federal indictment also contains a forfeiture allegation, which would require all 26 defendants to forfeit to the government $16,017,200, which represents the proceeds obtained as a result of the alleged offenses.
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 Bruce E. Clark. It was investigated by the Jackson County Drug Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration and the Kansas City, Mo, Police Department.
Virginia Man Pleads Guilty to Contraband Cigarette TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Virginia man pleaded guilty in federal court today to his role in a multi-million dollar, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
Gerald E. Barber, 68, of Virginia, pleaded guilty before U.S. District Judge Brian C. Wimes to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking from July 2010 to Jan. 26, 2012.
Barber was the president of the Seneca-Cayuga Tobacco Company (SCTC) in Grove, Okla., which is a corporation operated by the Seneca Cayuga Tribe of Oklahoma, a federally recognized Indian tribe.
Although SCTC manufactures its own brands of native cigarettes, Barter was interested in selling unstamped and untaxed premium-brand cigarettes to smoke shops on other Indian nations, specifically in the state of New York. New York pre-collects an excise tax of $4.35 per pack of cigarettes from wholesalers for sales to Indian nations and tribes. Federal and New York state law requires that tax stamps be affixed to cigarette packages – prior to their sale to consumers – reflecting that the required state taxes have been paid. As part of this conspiracy, New York’s state excise tax of $4.35 per pack was not paid.
Barber ordered premium-brand contraband cigarettes from a co-conspirator, who in turn purchased those cigarettes from co-defendant Craig Sheffler, 45, of Independence, through his business, Cheap Tobacco Wholesale.
Sheffler, who pleaded guilty to his role in the conspiracy on Dec. 19, 2014, made regular purchases of contraband cigarettes from undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Barber then sold those premium-brand cigarettes to smoke shops located on New York Indian reservations, including Jan’s Smoke Shop and AJ’s Candy & Tobacco, LLC, both of whom have pleaded guilty to their roles in the conspiracy. The contraband cigarettes were transported to New York without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. The benefit to those smoke shops was that they did not pay New York state cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers by over $40 per carton.
To pay for the cigarettes (which were charged on delivery), the Indian smoke shops wired money across state lines, often to SCTC. SCTC then wired money across state lines to co-conspirators, who wired money across state lines to Cheap Tobacco Wholesale. Sheffler paid the undercover ATF agents, often in cash.
Under the terms of today’s plea agreement, Barber must pay a money judgment in the amount of $80,000, representing the remaining profits obtained by SCTC as a result of his role in the conspiracy.
According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Approximately 201,340 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.
Under federal statutes, Barber 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. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.
Texas Man Pleads Guilty to Stealing $930,000 from St. Joseph EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Weatherford, Texas man has pleaded guilty in federal court to a mail fraud scheme in which he embezzled more than $930,000 from Herzog Contracting Corporation in St. Joseph, Mo.
Daniel Reif, 48, of Weatherford, Texas, pleaded guilty before U.S. District Judge Beth Phillips on Thursday, Jan. 22, 2015, to one count of mail fraud and one count of filing a false income tax return.
By pleading guilty, Reif admitted that he engaged in a scheme to defraud Herzog from January 2006 through Aug. 26, 2011. The government’s evidence establishes the amount embezzled by Reif totaled at least $931,256.
Herzog, which constructs railroads, highways, bridges, and airports, has a regional office in Irving, Texas. Reif began working for Herzog in the Irving office in August 2005. Reif was the manager of signals for Herzog and responsible for procuring materials and services from vendors in order to fulfill the needs of existing jobs; he was also responsible for oversight of the installation and performance of those services and materials. Reif was authorized to approve payments to vendors under his supervision and responsibility.
Reif founded his own company, Railway Signal Solutions, LLC (RSS), in February 2005. Reif began ordering project materials and services from supply vendors through RSS, then re-selling those products and services to Herzog at inflated prices. The RSS invoices made it appear as though the materials and services were being provided directly by RSS, an ostensibly independent supply vendor.
Reif, on behalf of RSS, paid the original, true vendors with a personal credit card or cashier’s check. Reif then, through RSS, invoiced Herzog for a higher price. The difference between the true price and Reif’s inflated price varied from 10 percent to over 100 percent. After RSS invoiced Herzog, Reif actually authorized payment of the inflated invoices himself.
Over the course of Reif’s scheme, RSS invoiced Herzog a total amount of at least $3,883,306, and Herzog paid RSS a total of at least $3,657,896.
Today’s plea agreement cites one instance of a $292,241 check from Herzog made payable to RSS that was mailed on March 10, 2010. The check was sent as payment for two invoices, one of which was sent by RSS to Herzog for a signal material package in the amount of $246,856. Reif, through his company RSS, had paid $152,686 for this same part, thus marking up the part by $94,170 and defrauding Herzog that same amount.
Reif also admitted that he filed a false federal income tax return on April 19, 2009, for the year 2008. According to the plea agreement, Reif claimed $990,159 in business expenses, although $498,301 of his business expenses had already been reimbursed by Herzog, his employer. The return materially understated his taxable income, resulting in a tax loss to the government of $192,230.
Under the terms of the plea agreement, Reig will be sentenced to 36 to 38 months in federal prison without parole and must pay restitution in an amount to be determined by the court. Reif must forfeit to the government $105,000 seized from his TD Ameritrade account and a 2010 Tige boat and trailer; Reif also must make a $225,000 payment on or before the date of sentencing. 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 FBI and IRS-Criminal Investigation.
Tennesse Business Owner Sentenced to 10 Years for $3.5 Million Cargo Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Memphis, Tenn., business owner was sentenced in federal court today for his role in a cargo theft scheme that included a theft in West Plains, Mo.
Earl Stanley Nunn, 60, of Memphis, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole, which is the maximum sentence for the offense. The court also ordered Nunn to pay $3,514,521 in restitution.
On July 14, 2014, Nunn pleaded guilty to theft of an interstate shipment. Nunn, the owner of Nu World Trucking, LLC, was the leader of a cargo theft ring that used the resources of Nu World Trucking to steal cargo in various states. They did so by “bob-tailing” (meaning they traveled in a road tractor truck, without a semi-trailer attached) through truck stops and service stations located on or near interstate highways, looking for semi-trailers that had been left parked and unattended, and were not coupled to road tractors. When they located a semi-trailer that appeared to be unattended, they would steal the semi-trailer and the goods it contained by coupling their road tractor truck to it and driving off. After having stolen a semi-trailer and its contents, they usually transported the stolen goods to the Chicago, Ill., and Detroit, Mich., areas to be “fenced” or sold.
Co-conspirators committed thefts in various states, including Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Missouri, Nebraska, Ohio, Tennessee, Texas, and Virginia.
Nunn’s co-conspirators included his nephew, Michael Lee Sherley, 50, of Memphis, his son, Roderick Nunn (who pleaded guilty in a related case in the Western District of Michigan) and others. Sherley was sentenced on Sept. 18, 2014, to four years and six months in federal prison without parole. (The sentence includes a 33-month term for his conviction for theft of an interstate shipment, plus a 21-month term for the revocation of his supervised release in a prior unrelated federal conviction in the Western District of Tennessee.)
The specific charge to which both Nunn and Sherley pleaded guilty involves a theft that occurred on May 11, 2013, at the Snappy Mart Truck Stop in West Plains. Nunn and Sherley stole a 2000 Wabash trailer (valued at $7,500), which contained a load of Green Giant canned corn (valued at $73,008). The trailer, owned by Bryant Freight, LLC, was in transit from Minnesota to a food bank in Arkansas. Nunn and Sherley admitted that they traveled through Missouri and Indiana with the stolen cargo before being apprehended in Michigan.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI’s Memphis Cargo Theft Task Force, the U.S. Marshal’s Service, the West Plains, Mo., Police Department and the Michigan State Highway Patrol.
Joplin Man Sentenced to 10 Years for Attempting to Entice a Minor for SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man has been sentenced in federal court for attempting to entice a minor for illicit sexual activity.
Erik Leroy Clark, 35, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool on Thursday, Jan. 22, 2015, to 10 years in federal prison without parole.
On Aug. 26, 2014, Clark pleaded guilty to the attempted coercion and enticement of a minor. Clark believed he was meeting a 10-year-old girl at a Joplin park for an illicit sexual encounter, which in reality was part of an undercover law enforcement investigation.
A Jasper County, Mo., Sheriff’s Department detective assumed an undercover identity and posted an advertisement on an online social networking Web site on July 14, 2014. The ad was titled “Looking for someone into incest/taboo things –w4m-40.” The ad included a narrative, which read: “Looking for someone who is practicing incest or is interested in incest. Mother daughter. No spammers put incest in subject line so I know you are serious. Disease free.”
Clark responded to the ad on July 20, 2014. The undercover detective told Clark that the ad was for someone to teach her 10-year-old daughter about sex. Very quickly, Clark started suggesting a meeting and said he was willing to help, but that the 10-year old girl’s mother needed to be present.
In subsequent e-mails, Clark offered to engage in various sexual activities with the 10-year-old girl and suggested meetings on several occasions. The undercover detective repeatedly told Clark no to each meeting request, but finally agreed to meet Clark at a park located in Joplin.
On Aug. 6, 2014, law enforcement officers identified Clark as he drove through the park, using a photo he had e-mailed to the undercover detective. Officers stopped Clark and arrested him. Upon initial contact, Clark immediately stated, “I knew it, I knew it, I knew I was going to get in trouble.” Officers searched his car and found a “Hello Kitty” ball, Durex tropical-flavored condoms and a bottle of Equate warming liquid personal lubricant.
Clark admitted to searching for incest pornography over the Internet on a regular basis, and that he had a curiosity that scared him because he could not control it.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and U.S. 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."
KC Man Sentenced to 25 Years for Cocaine Conspiracy That Resulted in Murder, Attempted MurderRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for his role in a $7.5 million conspiracy to distribute cocaine and crack cocaine, which resulted in a murder and an attempted murder for which state charges are pending.
Garron T. Briggs, also known as “Guice,” 29, of Kansas City, was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, Jan. 21, 2015, to 25 years in federal prison without parole.
On June 5, 2014, Briggs pleaded guilty to participating in a conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine between Jan. 1, 2006, and Nov. 13, 2013. Briggs also pleaded guilty to one count of distributing 28 grams or more of crack cocaine on July 27, 2011.
In addition to the drug-trafficking charges, the court found in rendering the sentence that Briggs also participated in the drug-related murder of Edward Ewing, II, in August 2011. Briggs believed that Ewing had stolen $40,000 and nine ounces of cocaine from him in a burglary. Testimony during the sentencing hearing was that there is no evidence to indicate that Ewing, who was employed full-time and did not have a felony criminal record, was responsible for the burglary.
Briggs and two other men waited outside Ewing’s residence until Ewing’s girlfriend arrived, then confronted her at gunpoint and forced their way into the residence. They pistol-whipped Ewing, who told them he didn’t know anything about the burglary, then repeatedly shot and killed him. Briggs shot Ewing’s girlfriend in the throat and she pretended to be dead, but actually survived the shooting.
Briggs is charged in Jackson County Circuit Court with first degree murder, first degree assault and two counts of armed criminal action. The state case is pending.
Briggs is among 16 defendants charged in the federal indictment, all of whom have pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, the Jackson County Drug Task Force, the Lee’s Summit, Mo., Police Department and the Kansas City, Mo., Police Department.
Springfield Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Kalif Hickey, 33, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Tuesday, Jan. 20, 2015, to seven years and three months in federal prison without parole.
On Sept. 10, 2014, Hickey pleaded guilty to receiving and distributing child pornography over the Internet between Nov. 17, 2011, and Jan. 1, 2012. According to court documents, Hickey used a peer-to-peer file-sharing program to receive and distribute child pornography. Law enforcement officers seized and searched Hickey’s computer, which contained 98 videos depicting child pornography.
Hickey must forfeit to the government a computer tower, two laptop computers, five computer hard drives, two MP3 players and 639 CD-R writable disks, all of which were used to commit the offense.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. 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."
Noel Man Sentenced for Massive Child Porn LibraryRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Noel, Mo., man was sentenced in federal court today for possessing what is described in court documents as a massive library of child pornography.
Edward S. Hetherington, 55, of Noel, was sentenced by U.S. District Judge Beth Phillips to eight years and one month in federal prison without parole.
On Aug. 12, 2014, Hetherington pleaded guilty to possessing child pornography. Hetherington admitted that on March 12, 2013, there were images and videos of child pornography on his computers.
According to court documents, Hetherington’s criminal conduct occurred over a time span of 25 years, during which he amassed more than 100,000 images of sexual violence against children.
At the time of his arrest, Hetherington was in possession of a massive amount of child pornography. Law enforcement officers discovered eight external storage hard drives connected to his computer, which were full of images and videos of child pornography. Hetherington’s library of child pornography, which dates back as far as 1989, was organized into various categories that described the various acts of violence perpetrated against the children. Based on the evidence obtained, Hetherington possessed one of the largest and most extensive libraries of child pornography ever uncovered by agents with the Southwest Cyber Crimes Task Force.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, the Southwest Cyber Crimes Task Force, the Cassville, Mo., Police Department and the McDonald County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Independence Man of Illegal Firearm, Faces at Least 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm.
Meigel M. Craddock, 24, of Independence, was found guilty of being a felon in possession of a firearm.
Evidence presented during the trial indicated that Craddock was in possession of a Glock 9mm semi-automatic pistol on Nov. 20, 2013.
A Kansas City, Mo., police officer saw a green Pontiac that had been reported stolen traveling eastbound on 43rd Street near Wabash late that morning. Shortly afterward, the officer located the unoccupied vehicle near 4600 Wabash. The officer stopped Craddock, who was walking nearby and was the only person walking in the area. According to the officer, Craddock appeared nervous and claimed that he lived at the address and had just gotten off the bus. Craddock, however, was unable to tell him the address. The officer frisked Craddock and found a large Pontiac key and fob in his left front pants pocket. The officer fit the key into the vehicle’s driver’s side door lock and discovered that the key operated the Pontiac. Upon opening the door, the officer saw the loaded Glock pistol on the driver side floorboard.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Craddock has three prior felony convictions for armed criminal action, three prior felony convictions for robbery, a prior felony conviction for burglary and a prior felony conviction for resisting police.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two and a half hours before returning the guilty verdict to U.S. District Judge Dean Whipple, ending a trial that began Tuesday, Jan. 20, 2015.
Under federal statutes, Craddock is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. 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 D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.
Jasper County Man Sentenced to 16 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jasper County, Mo., man who contacted a child victim on Facebook was sentenced in federal court today for producing child pornography.
Ian Holman, 33, of Jasper County, was sentenced by U.S. District Judge M. Douglas Harpool to 16 years in federal prison without parole.
On Sept. 4, 2014, Holman pleaded guilty to the charge contained in an Oct. 1, 2013, federal indictment.
According to court documents, law enforcement authorities received reports regarding two minors that Holman contacted via Facebook. One of the minors, a 13-year-old in Carthage, Mo., told officers that Holman (using the screen name “Lucky Holman”) offered to pay her $75,000 to $100,000. He also asked her to send him sexually explicit pictures of herself, which she did.
On Sept. 11, 2013, after receiving the report from Jane Doe, a sheriff’s deputy was dispatched to Holman’s residence. Holman attempted to elude the deputy by running out the back of the house and into the woods. The deputy, along with two other officers and a K9 unit, pursued Holman into the woods. The officers searched for Holman for approximately 45 minutes. The deputy was able to contact Holman by phone and persuade him to turn himself in.
According to court documents, Holman told officers that he friended numerous 12-to-14-year-old girls in the Carthage and Webb City area and used Facebook instant messaging to contact the girls.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Galena Woman Sentenced for Stealing $300,000 from EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Galena, Mo., woman has been sentenced in federal court for embezzling more than $300,000 from her employer.
Sarah N. Underwood, 36, of Galena, was sentenced by U.S. District Judge Beth Phillips on Tuesday, Jan. 20, 2015, to two years and six months in federal prison without parole. The court also ordered Underwood to pay $311,280 in restitution to Fall Creek Condominium and $95,008 in restitution to the Internal Revenue Service, for total restitution payments of $406,288.
On March 17, 2014, Underwood pleaded guilty to wire fraud, money laundering and failure to file a tax return. Underwood worked as the community manager for Fall Creek Condominium in Branson, Mo., from Jan. 15, 2007, until she was fired on Sept. 7, 2012, when her theft was discovered. Fall Creek and its owners association has 639 condominiums owned by individuals and under its association. Among other duties, Underwood was responsible for the book-keeping and financial affairs of Fall Creek, and was an authorized signatory on the checking accounts.
Underwood’s wire fraud, money laundering scheme, and tax fraud extended over two years and totaled $406,288 in losses to her employer and the government.
Underwood conducted numerous unauthorized electronic bank transfers and wrote $311,280 in unauthorized checks from the bank accounts of the Fall Creek Condominium Owner’s Association over a two-year period. Underwood also received two paychecks every two weeks from Fall Creek. Underwood deposited these checks into her bank accounts and spent the money on personal expenses and purchasing luxury items.
For example, Underwood admitted that she spent $76,287 to purchase a Shelby Mustang and used $25,505 to purchase a condominium at Fall Creek. Underwood also purchased a 2012 Harley-Davidson motorcycle and a 2012 Yamaha wave-runner.
Underwood used a cashier’s check written on her employer’s bank account to purchase a 2012 Ford F350 Super Duty 4X4 Crew Cab Truck for $56,169. The truck was registered to Mstrmind Enterprises, a company owned by her and her boyfriend, which performed construction and rehabilitation work at Fall Creek. Underwood was responsible for running the business affairs of Mstrmind, while her boyfriend, who was also employed by Fall Creek, was the project manager and responsible for the actual construction or rehabilitation project. The embezzlement scheme included an $80,000 check written to Mstrmind for work that was never performed.
Underwood also admitted that she failed to file federal tax returns for 2010, 2011 and 2012.
According to court documents, after pleading guilty in this case, Underwood became involved in another incident that further casts suspicion on her because of monies from a not-for-profit organization that were in her possession and went missing. On May 13, 2014, the Branson, Mo., Police Department received a report from Biker’s Against Drunk Drivers (BADD) regarding the possible theft of a bank deposit totaling $1,997. Although BADD chose not to proceed with a criminal prosecution, court documents note, Underwood engaged in behavior that placed her under suspicion for theft and fraud while she was facing a sentencing for similar conduct perpetrated against a different victim.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Woman, Two Men Indicted for Sexual Exploitation of ChildrenRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three southern Missouri residents were indicted by a federal grand jury today in separate and unrelated cases of sexual child exploitation.
USA v. Penn
Chelese Penn, 24, of Hartville, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Penn attempted to use a minor, identified as Jane Doe #1, to produce child pornography between July 1, 2012, and Oct. 3, 2014. Penn is also charged with receiving and distributing child pornography over the Internet during that time.
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 Crime Task Force.
USA v. Thomas
Kevin Robert Thomas, 42, of Bolivar, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Thomas received and distributed child pornography over the Internet from April 26 to May 2, 2013. Thomas is also charged with possessing child pornography on June 17, 2013.
The federal indictment also contains a forfeiture allegation, which would require Thomas to forfeit to the government a desktop computer and a laptop computer that were used to commit the alleged offenses.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cyber Crime Task Force, the Missouri State Highway Patrol, the Polk County, Mo., Sheriff’s Department and the Bolivar, Mo., Police Department.
USA v. Cannon
Christian Cannon, 42, of Lebanon, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment alleges that Cannon received and distributed child pornography over the Internet between April 18 and July 21, 2014.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.
Dickinson cautioned that the charges contained in these indictments 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.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
St. Joseph Man Sentenced to 10 Years for Crack Cocaine, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for distributing crack cocaine and illegally possessing a firearm.
Brian K. Brewer, 23, of St. Joseph, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole.
On Aug. 5, 2014, Brewer pleaded guilty to distributing crack cocaine and carrying a firearm in relation to a drug-trafficking crime. Brewer admitted that he sold approximately one ounce of crack cocaine for $1,000 on April 14, 2011. Brewer also admitted that on that day he was in possession of a Glock .40-caliber handgun, which he sold for $500.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Buchanan County Sheriff’s Department.
New York Business Must Pay $3.5 Million for Trafficking Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a retail business operating on a reservation in the state of New York pleaded guilty in federal court today to its role in a conspiracy to commit wire fraud and contraband cigarette trafficking, for which it must pay a total of more than $3.5 million in fine, forfeiture and restitution.
TSNE, doing business as Jan’s Smoke Shop, in Bascom, New York, a gas station and convenience store business recognized by the Tonawanda Seneca Nation, pleaded guilty before U.S. District Judge Brian C. Wimes.
TSNE participated in the conspiracy from September to November 2011 by ordering contraband cigarettes from co-conspirators and causing those cigarettes to be transported into the state of New York. New York pre-collects an excise tax of $4.35 per pack of cigarettes from wholesalers for sales to Indian nations and tribes. Federal and New York state law requires that tax stamps be affixed to cigarette packages – prior to their sale to consumers – reflecting that the required state taxes have been paid.
As part of this conspiracy, New York’s state excise tax of $4.35 per pack was not paid. As a result, TSNE’s foreseeable amount of total excise tax loss to the state of New York is approximately $1,900,080. Federal law enforcement agents reviewed invoices and other records and determined that TSNE made a profit of $700,650 on the sale of the contraband cigarettes.
Under the terms of today’s plea agreement, TSNE must pay a fine of $950,000, a money judgment to the government of $700,650 and restitution to the state of New York in the amount of $1,900,080. The total amount of fine, forfeiture and restitution is $3,550,730.
TSNE must also serve two years of probation. During that time, Jan's Smoke Shop will be prohibited from buying and selling any cigarettes (including premium brands and native brands), wholesale or otherwise. The government will dismiss the charges against Tara Sundown (who operated Jan’s Smoke Shop) contained in an Aug. 12, 2013, federal indictment.
According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation in the Kansas City metropolitan area. Approximately 201,340 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.
In addition to the federal indictment, the undercover operation resulted in a $3.5 million civil forfeiture. Following the seizures that occurred as a result of the investigation, the U.S. Attorney’s Office started a $3.5 million civil forfeiture case naming the assets taken up to that point. On Oct. 23, 2012, the court entered a default order of forfeiture for more than $2 million seized from bank accounts and by agents, more than 300 cases of seized cigarettes, a 2009 Cessna T206H Stationair aircraft, two 2012 Peterbilt 389 trucks and two 2012 Peterbilt 386 trucks. The seized cigarettes have been sold at auction for $532,500. The 2009 Cessna Aircraft has been sold for $450,000. The four trucks have been sold for the following amounts: $115,000; $115,000; $113,000; and $113,000. The civil case has been stayed pending the resolution of the criminal case.
In a related case, AJ’s Candy & Tobacco, LLC, a tobacco wholesaler located on a reservation in Irving, N.Y., pleaded guilty to its role in the conspiracy and has been sentenced. The court ordered AJ’s to pay a $1 million fine. The company also must forfeit to the government $221,550, which represents the proceeds of the offense. The court also ordered the company to pay an additional $535,050 in restitution to the state of New York. Under the terms of the company’s plea agreement, AJ’s is prohibited from selling premium cigarettes for two years.
This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.
Arkansas Man Pleads Guilty to Bank Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Crawford, Ark., man pleaded guilty in federal court today to leading a bank fraud conspiracy that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Mo., and elsewhere.
Phillip Daren Shockey, 49, of Crawford, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Aug. 27, 2014, federal indictment. Under the terms of today’s plea agreement, Shockey must pay a money judgment of $159,842, which represents the proceeds of the conspiracy and for which he is jointly and severally liable to pay with co-defendants.
By pleading guilty today, Shockey admitted that he was the leader of the conspiracy to defraud more than a dozen banks from July 31, 2013, to Feb. 28, 2014, by passing counterfeited and forged checks with fake identification documents. At least 12 co-conspirators stole mail, printed counterfeit checks, passed counterfeit checks with fake identification and opened at least five fictitious businesses for the sole purpose of concealing the deposit and subsequent withdrawal of counterfeit checks.
Shockey recruited co-conspirators to steal mail and act as “check runners” who used false identity documents in order to cash fraudulent checks drawn upon the accounts of bank customers. Shockey possessed computers, printers, scanners, cell phones, thumb drives, stolen mail and software in order to produce fraudulent identification and checks for his co-conspirators. Shockey also used false identifications of the banks’ customers and others in order to pass and attempt to pass fraudulent checks.
Shockey and those working at his direction passed and attempted to pass approximately 51 checks for a loss of at least $159,842.
Under federal statutes, Shockey is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 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 Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Secret Service Financial Crimes Task Force, the U.S. Postal Service – Criminal Investigations, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Tulsa, Okla., Police Department, the Jasper County, Mo., Sheriff’s Office, the Webster County, Mo., Sheriff’s Office, the Greene County, Mo., Sheriff’s Office, the Columbia, Mo., Police Department, the Blue Springs, Mo., Police Department, the Monett, Mo., Police Department, the Pierce City, Mo., Police Department, the St. Clair County, Mo., Sheriff’s Department, the Rolla, Mo., Police Department and the Catoosa, Okla., Police Department.
Wisconsin Man Charged with Polo Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Wisconsin man was charged in federal court today with robbing a Polo, Mo., bank.
Oran Woodfin, 30, of Wisconsin, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Woodfin remains in federal custody pending a detention hearing.
Today’s federal criminal complaint alleges that Woodfin stole $7,867 from Bank Northwest, 305 Main St., Polo, on Friday, Jan. 9, 2015.
According to an affidavit filed in support of the criminal complaint, Woodfin entered the bank, approached a bank teller and ordered her, “Give me your money.” He allegedly kept his left hand inside his jacket as though he had a weapon. The teller pleaded with him, “Don’t shoot me,” and placed the cash from her teller drawer on the counter. Woodfin allegedly picked up the money and walked out of the bank.
Bank surveillance photos indicated the robber was driving a red Dodge extended cab pickup truck with a black canvas tonto cover in the bed of the truck. A witness to the robbery observed the truck had a broken driver’s side taillight cover although the bulb was still functioning. Photographs of the robber and the pickup truck were disseminated to the media.
On the same day, the affidavit says, Woodfin checked into the Super 8 Motel in Richmond, Mo. Employees at the motel saw the surveillance photos on a television newscast, thought that Woodfin and his vehicle matched the descriptions from the bank robbery and the photos, and notified the police department.
Richmond police officers arrested Woodfin without incident outside his motel room. Officers executed a search warrant at the motel room and seized $7,145, a new computer, clothes and a container of alcohol. The pickup truck had been reported as stolen out of Clark County, Wisconsin. Woodfin had a warrant for his arrest out of Wisconsin for a probation and parole violation.
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. Attorneys Brent Venneman and D. Michael Green. It was investigated by the Caldwell County, Mo., Sheriff’s Department, the Polo, Mo., Police Department, the Richmond, Mo., Police Department, the Ray County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
KC Man Sentenced to Life in Prison for $20 Million Drug-trafficking Conspiracy, Murder-for-hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., was sentenced in federal court today for his role in a multi-million dollar drug-trafficking conspiracy and an unsuccessful murder-for-hire conspiracy.
Andre Taylor, also known as “Dre,” 49, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to life plus 30 years in federal prison without parole. The court sentenced Taylor to life in prison for the drug-trafficking and murder-for-hire convictions. The court also sentenced Taylor to a consecutive term of 30 years for possessing a machine gun in furtherance of a crime of violence.
On Sept. 10, 2014, Taylor was found guilty at trial of participating in a conspiracy to distribute large quantities of marijuana and cocaine between Feb. 1, 2010, and Feb. 25, 2014. Taylor was also convicted of participating in a conspiracy to commit murder-for-hire, aiding and abetting the distribution of cocaine and possessing a machine gun in furtherance of a crime of violence (the murder-for-hire conspiracy).
Evidence introduced during the trial indicated that Taylor was the head of a major cocaine and marijuana distribution organization in the metropolitan area. A Mexico-based cartel supplied narcotics to the drug-trafficking organization and Taylor sometimes traveled to Mexico to buy drugs for resale within the Kansas City area. Taylor boasted that he personally sent $20 million back to Mexico. Numerous shipments of cocaine, totaling more than 100 kilograms, were transported to Kansas City from Mexico.
Taylor’s relatives and others assisted him in recruiting buyers and arranging sales. His base of operation was in the 2300 block of Hardesty in Kansas City, Mo., where his family owned three houses next door to each other. Confidential informants participated in numerous controlled buys of narcotics. Many of those buys took place in, around, or outside of the three Taylor houses.
In intercepted telephone conversations, Taylor boasted of spending millions of dollars to buy drugs to sell in the Kansas City area. Based on telephone interceptions, a murder-for-hire plot was discovered during the conspiracy. The intended victim was a co-conspirator and former trusted associate of Taylor’s.
Co-defendant Victor Vickers, also known as “VV,” 30, of Kansas City, was found guilty at trial of participating in a conspiracy to distribute less than 100 kilograms of marijuana. In addition to Taylor and Vickers, 17 co-defendants have pleaded guilty to charges contained in the federal indictment.
Drug-Trafficking Conspiracy
A confidential source completed a series of controlled purchases of cocaine from Taylor and his co-conspirators in 2011 and 2012.
On Sept. 27, 2012, search warrants were executed at the three homes owned by the Taylor family at 23rd and Hardesty. Approximately 227 pounds of marijuana was seized, as well as an assault rifle and body-armor-piercing bullets. In addition, on Nov. 30, 2012, more than 1,000 pounds of marijuana, which was intended for delivery to Taylor, was recovered from a truck and trailer being driven by a co-conspirator. This co-conspirator told investigators that he had delivered marijuana to Kansas City to Taylor seven or eight times, and he had transported $500,000 to $700,000 to Arizona for these drug shipments.
FBI agents conservatively estimate that Taylor was responsible for distributing at least 120 kilograms of cocaine and at least 2,000 pounds of marijuana, either himself or through one of his many confederates.
Murder for Hire Conspiracy
The intended victim of the murder-for-hire conspiracy was co-defendant William E. Brown, also known as “Billy,” 43, of Kansas City. Taylor believed that Brown, a one-time trusted associate, stole $500,000 and more than 13 kilograms of cocaine from Taylor’s downtown loft apartment. (Taylor also maintained a residence at a luxury apartment on the County Club Plaza.) Taylor sought to hire a “hit man” to do the job and contacted co-defendant Kenneth Vaughn Cooper, 32, of Kansas City.
Brown pleaded guilty to his role in the drug-trafficking conspiracy and admitted that he purchased at least five kilograms of cocaine from Taylor. Cooper pleaded guilty to his role in the murder-for-hire conspiracy and admitted that he was supposed to be paid a share of the stolen $500,000 for committing the murder.
On Aug. 18, 2012, FBI agents intercepted a telephone call in which Taylor said, “it’s necessary to kill him,” referring to Brown.
On Aug. 21, 2012, agents intercepted a phone call between Cooper and Taylor. Taylor said he had a “hammer” at “23rd and Hardesty” and Cooper said he was going to come and get it. Later that day, Jackson County Sheriff’s deputies arrested Cooper on outstanding warrants while he was a passenger in a truck driven by his father. As deputies approached the vehicle they could smell burnt marijuana coming from inside. When the vehicle was searched, deputies recovered a firearms case behind the driver’s seat that contained a machine gun – a MAC-10 style homemade .45-caliber firearm with no serial number – and a metal stick magazine with 18 live rounds of .45-caliber ammunition.
This case was prosecuted by Assistant U.S. Attorneys Stefan C. Hughes and Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, the Jackson County Drug Task Force, the Lee’s Summit, Mo., Police Department, and the Kansas City, Mo., Police Department.
KC Man Charged with Bank Robbery, Carjacking Following Police ShootingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was shot by police officers was charged in federal court today with bank robbery and carjacking.
Steven Marquain Davis, 29, of Kansas City, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Davis is charged with armed bank robbery, carjacking and use of a firearm during a violent crime (carjacking).
Today’s criminal complaint alleges that Davis used a bomb to rob the Commerce Bank at 922 Walnut St., Kansas City, Mo., on Friday, Jan. 9, 2015.
According to an affidavit filed in support of the criminal complaint, Davis entered the bank between 4:10 and 4:20 p.m. Davis, allegedly holding a remote control device, approached a teller counter and placed a black duffel bag on the counter. The remote control was described as having a red wire wrapped around it and similar in appearance to the remote used on remote control toys. Davis allegedly told the teller “gimme everything” and that “it’s” on the side of the building, which the teller believed referred to a bomb because of the remote he was holding. The teller placed $29,689 in the black duffel bag.
After Davis left the bank, the affidavit says, he approached a 2012 Suzuki Grand Vitara on Petticoat Lane, mid-block between Main Street and Walnut Avenue. Davis allegedly pulled on the door handle and ordered the driver to open the door. When she refused, he allegedly pointed a handgun at her and again stated, “Open the door.” He began banging on the window of her vehicle with the handgun, the affidavit says, before she drove away from the area.
A witness confronted Davis in the street, the affidavit says. Davis allegedly pointed a handgun at the witness and stated, “What are you looking at?” Davis allegedly tried unsuccessfully to get into two other cars in the area before multiple police officers arrived on the scene. Davis allegedly pointed a handgun at the officers, who then fired at Davis and wounded him before taking him into custody. Investigators collected $29,690, a remote device and a Smith & Wesson .38-caliber revolver from the scene where Davis was arrested.
FBI agents located a device that appeared to be a bomb in the southwest area of the bank lobby. FBI and Kansas City, Mo., Police Department bomb technicians responded and determined the explosive device posed an imminent threat to public safety. Bomb technicians rendered the device safe.
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 Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.