Western District of Missouri
Press releases recorded for this federal judicial district.
Springfield Woman Sentenced for Assaulting Federal Agent with her CarRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for assaulting a federal agent with her car while he was attempting to apprehend her boyfriend during a foot chase.
Alisha Johnson, 33, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to six years and six months in federal prison without parole. The court also ordered Johnson to pay $9,926 in restitution to the agent who was injured and $14,886 in restitution to the Office of Workers’ Compensation Programs.
On July 25, 2013, U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) agents were attempting to apprehend Francisco Sosa-Lopez for immigration violations. When Sosa-Lopez saw the approaching agents, he fled the area on foot. While the agents were pursuing Sosa-Lopez, Alisha Johnson arrived in her vehicle and attempted to pick up Sosa-Lopez.
As Sosa-Lopez attempted to get in the vehicle, Johnson shouted derogatory comments at the pursuing agents, indicating that she was aware of the agents’ intent to apprehend Sosa-Lopez. Agents continued the pursuit and ordered Sosa-Lopez to not enter the vehicle. Sosa-Lopez ignored the agents’ directives and continued to try to enter the rolling vehicle. As one of the agents approached Sosa-Lopez, Johnson drove her vehicle over the curb and into the agent, striking the agent on the left leg. Sosa-Lopez entered the vehicle and fled from the scene; he remains a fugitive from justice. Johnson voluntarily surrendered to law enforcement shortly after the incident.
As result of being struck by the vehicle, the federal agent suffered significant damage to his knee. Two surgeries were later performed on his knee.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the Greene County, Mo., Sheriff’s Department.Former KC Woman Indicted for Fraud Scheme to Steal Victim's Lottery WinningsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Kansas City, Mo., woman has been indicted by a federal grand jury for a fraud scheme in which she stole $480,000 in lottery winnings from her victim as part of a scheme that resulted in a total loss of more than $640,000.
Freya Pearson, 41, of Georgia, formerly of Kansas City, was charged in a nine-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Oct. 28, 2014. The indictment was unsealed and made public today upon Pearson’s initial court appearance.
The federal indictment alleges that Pearson convinced her 60-year-old victim to transfer $480,000 into the bank account of an organization called Recidivism at Work (RAW), a nonprofit entity Pearson had recently established. This victim, the indictment says, had won $2 million in the Missouri Lottery in 2008 and, after purchasing two houses, established an annuity to provide approximately $30,000 per year for the rest of her life.
Pearson allegedly instructed the victim to withdraw her lottery winnings from the annuity account. The victim made three wire transfers in April, May and June 2010 to deposit the funds into Pearson’s RAW checking account. Whether the money was an investment or a business loan, the indictment says, Pearson materially omitted to disclose to the victim that she would use the money to gamble and for her own personal expenses. Pearson allegedly used the $480,000 to gamble, travel, buy cars, clothes, and furniture, and pay rent while she lived in the St. Louis, Mo., metropolitan area. According to the indictment, no identifiable money was used for the nonprofit entity, nor for any business purpose.
When she met the victim in 2010, according to the indictment, Pearson was unemployed and her only income came from child support and Social Security benefits for one of her children. In March 2010, Pearson began to receive federal housing benefits for a residence in Kansas City, Mo. The Section 8 program assists low-income families with housing by paying most or all the beneficiary’s rent. She received a total of $76,837 in federal housing benefits over four years. In 2011, Pearson also began receiving welfare and/or food stamp benefits.
According to the indictment, Pearson filed for Chapter 7 bankruptcy protection on Dec. 2, 2010, but did not disclose the RAW bank accounts, which had total balances of $56,506. Pearson received a discharge of her debts on March 15, 2011.
Pearson allegedly made random payments totaling $38,170 to the victim, using the victim’s own money, before stopping entirely in August 2011. Pearson filed no tax return for tax year 2010, the indictment alleges, and thus did not pay income taxes of $122,000 that would have been due on the $441,830 of taxable income Pearson received as a result of defrauding her victim.
Pearson allegedly defrauded the victim of a total of $441,830. Pearson allegedly evaded $122,000 in federal income tax. Pearson allegedly defrauded the Weston Housing Authority of $76,837 in housing benefits. According to the indictment, Pearson thus caused a total loss of at least $640,667.
The federal indictment charges Pearson with three counts of wire fraud, four counts of money laundering, one count of tax evasion and one count of making false statements to the Department of Housing and Urban Development (related to her application for federal housing benefits).
The indictment also contains a forfeiture allegation, which would require Pearson to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $441,830.
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 Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department, IRS-Criminal Investigation and the Dept. of Housing and Urban Development, Office of Inspector General.Assistant U.S. Attorney Appointed to Lead Election Day ProgramRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that Assistant U.S. Attorney Dan Nelson will lead the efforts of the office in connection with the Justice Department’s nationwide Election Day Program for the Nov. 4, 2014, general elections.
Nelson has been appointed to serve as the District Election Officer for the Western District of Missouri, and in that capacity is responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters in Washington, D.C.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
Nelson, in his capacity as District Election Officer, represents the U.S. Attorney’s Office, Western District of Missouri on the Missouri Elections Integrity Task Force. The task force, which includes local, state and federal law enforcement and election authorities, will coordinate efforts to ensure Missouri elections remain fair, secure and accessible.
In order to respond to complaints of election fraud or voting rights abuses on Nov. 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, Nelson will be on duty in this district while the polls are open. He can be reached by the public at 816-426-3000.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 855-527-2847.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, D.C., by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.KC Business Owner among Three Sentenced for $1 Million Scheme to Defraud the ArmyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three co-defendants were sentenced in federal court today for their roles in a $1 million wire fraud scheme to sell counterfeit and modified computer equipment to the U.S. Army.
Virgie Dillard, 71, of Lee’s Summit, Mo., the owner of Missouri Office Systems and Supplies, Inc., and an employee, Roland Evans, 45, of Lee’s Summit, and Mark Morgan, 47, of Newport Coast, Calif., were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Evans was sentenced to 37 in federal prison without parole. Morgan was sentenced to 30 months in federal prison without parole. Dillard was sentenced to five years of probation. The court also ordered Dillard, Evans and Morgan to pay $1,073,022 in restitution to the U.S. Army, for which they are jointly and severally liable.
Dillard, Evans and Morgan have each pleaded guilty to their roles in the conspiracy to commit wire fraud.
Missouri Office Systems and Supplies, Inc. (MOSS), in Kansas City, Mo., sold all types of office machines, including computers, software and other office furniture and supplies. In August 2010, MOSS received a $2.1 million contract from the Army Recreation Machine Program (ARMP) for more than 2,500 Cisco parts – including network hardware, such as transceivers and switches, which allow computers to communicate with other computers. The network hardware was shipped to numerous locations, including ARMP headquarters at Fort Carson in Colorado Springs, Colo., as well as approximately 19 other ARMP locations in the United States and three international ARMP locations.
After receiving that contract, MOSS provided more than $1 million worth of counterfeit products and Cisco products that were used and modified post-manufacture and were obtained outside Cisco’s authorized distribution channels.
Evans handled all of the contracts MOSS had for Cisco products, including all of the contracts MOSS had with ARMP for Cisco products. MOSS provided 2,013 computer products that were improperly sourced, for which ARMP paid $1,073,022. Due to the products being improperly sourced, they were not eligible for Cisco warranties nor were the SMARTnet contracts legitimate. The products were unusable for ARMP and cannot be used in any portion of its computer network.
Dillard and Evans admitted they solicited equipment bids from Morgan’s firm, PRM Technology Equipment, LLC, knowing that it was outside of Cisco’s authorized distribution channels. Between August and December 2010, Dillard and Evans caused 46 purchase orders for products under ARMP contract to be sent to Morgan and PRM. Morgan obtained counterfeit Cisco products and Cisco products which were used and modified post-manufacture outside of Cisco authorized distribution channels. Morgan shipped these products to ARMP, which paid MOSS $1,073,022. Dillard signed the 14 checks that were paid to PRM for those products from the fraudulent proceeds, totaling $856,651.
Between September 2010 and August 2011, Dillard, Evans and Morgan continued to insist to ARMP and to Cisco – in emails, phone conferences and meetings – that MOSS had supplied new, genuine Cisco goods and services which were sourced from Cisco authorized distribution channels and protected by full Cisco warranties as required by the contract. They altered purchase orders and invoices, which they sent to Cisco to make it appear that the products were sourced properly.
This case was prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, the Department of Defense – Office of Inspector General and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).Former Director Sentenced for Stealing $300,000 from Home for Disabled PersonsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of a program that provided a home for disabled persons in Higginsville, Mo., has been sentenced in federal court for embezzling more than $300,000 from the organization.
Terri Arlene Marr, 51, of Warrensburg, was sentenced by U.S. District Judge Dean Whipple on Thursday, Oct. 30, 2014, to three years and one month in federal prison without parole. The court also ordered Marr to pay $317,544 in restitution. Marr must surrender to begin serving her sentence on Dec. 15, 2014.
On April 23, 2014, Marr pleaded guilty to two counts of theft in connection with a health care benefit program.
Marr was the director of the Progressive Alternative Living, Inc. (PAL) from 1991 through 2013. PAL is an organization that operates a home in Higginsville for disabled persons in need of assistance. PAL receives reimbursement for many of these individuals from Medicaid. Marr was responsible for keeping strict and accurate accounts of all money received by and disbursed for and on behalf of PAL.
Marr admitted that she used PAL credit cards to pay personal expenses. Marr also made payments on her personal credit cards out of the PAL bank account from 2001 through 2013.
Marr also admitted that, from 2001 through 2013, she issued payroll checks to an individual who was not an employee of PAL. These payroll checks total approximately $186,038.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the Higginsville, Mo., Police Department.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Shalamar J. Wade, 34, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 15 years and eight months in federal prison without parole. Wade was sentenced as an armed career criminal due to his prior felony convictions.
On April 10, 2014, Wade pleaded guilty to being a felon in possession of a firearm. He was arrested by Independence, Mo., police officers on July 9, 2013, at a Quick Trip convenience store on US 24 Highway in Independence. When police officers confronted Wade inside the store, he resisted as they tried to take him into custody. During the altercation, Wade was forced to the floor and a loaded Taurus .38-caliber revolver fell from his belt.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wade has four prior felony convictions for distributing a controlled substance and two prior felony convictions for possessing a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Former Union Officer Pleads Guilty to Stealing $12,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former secretary–treasurer of Brotherhood of Maintenance of Way Employees Lodge 800 pleaded guilty in federal court today to embezzling more than $12,000, which nearly depleted the lodge’s bank account.
Jeremy Bolte, 40, of Kansas City, Mo., pleaded guilty before U.S. District Judge Gary A. Fenner to 10 counts of embezzlement by a union officer.
Members of Lodge 800 are employees of BNSF Railway in the Kansas City metropolitan area. Bolte was appointed as secretary-treasurer of Lodge 800 on March 15, 2011, and remained in the post until he was removed from office on April 18, 2013. During the time he was a union officer, Bolte was the only person with a checkbook for Lodge 800’s checking account and only his signature was required on checks. Bolte also had a credit card for Lodge 800’s credit card account.
Between Jan. 19 and Sept. 7, 2012, Bolte wrote 18 unauthorized checks from Lodge 800’s bank account. Bolte admitted that he wrote 16 of those unauthorized checks to himself, which he endorsed and cashed to pay his personal bills. Bolte spent this money on personal lawyers’ fees related to a DUI arrest and a child support action by his ex-wife, car payments, rent payments and other personal expenses.
Between Dec. 27, 2011, and May 17, 2012, Bolte made seven unauthorized charges on Lodge 800’s credit card for personal expenses at Walmart, QuikTrip and Gas Depot. Bolte used the credit card at locations near his residence in Clay County, Mo., or where his children resided with his ex-wife near Topeka, Kan. In total, Bolte charged $491 in unauthorized expenses to Lodge 800’s credit card.
As a result of Bolte’s actions, Lodge 800 lost $12,009 and was left with only $33 in its checking account. Lodge 800 was also left with an unpaid credit card balance of $401.
Under federal statutes, Bolte is subject to a sentence of up to five years in federal prison without parole on each of the 10 counts, plus a fine up to $10,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Office of Labor-Management Standards.Former KC Woman Admits to $454,000 SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., woman pleaded guilty in federal court today to making false statements in order to receive more than $454,000 in income tax refunds.
Chiquita Tyler, also known as Chiquita Robinson, 33, of Wylie, Texas, formerly of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to making a false claim to a federal agency and to identity theft.
By pleading guilty today, Tyler admitted that she defrauded the federal government by preparing false income tax returns using false or stolen identity information in a scheme to receive $454,363 in refunds.
Between February 2010 and February 2011, Tyler prepared and filed false income tax returns using false and stolen information for approximately 70 individuals. Tyler prepared and electronically filed false income tax returns through Turbo Tax. She created false wages, false education expenses, false addresses and false occupations for the false income taxes she prepared. Some tax returns contained false dependents. Tyler directed refunds from the false returns be deposited on a prepaid debit card mailed to Tyler at her home address and other locations in Kansas City, Mo.
The total amount Tyler claimed through the preparation of false returns and use of prepaid debit cards was $454,363. The actual loss for amounts fraudulently received by Tyler was $343,889 because some of the fraudulent claims were discovered by the Internal Revenue Service prior to payment.
Under federal statutes, Tyler is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Former KC Man Pleads Guilty to Two Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Kansas City, Mo., man has pleaded guilty in federal court to robbing banks in Columbia, Mo., and Jefferson City, Mo.
Brian Dewitt Unthank, 45, formerly of Kansas City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, Oct. 28, 2014, to two counts of bank robbery.
By pleading guilty, Unthank admitted that he stole $6,328 from Landmark Bank, 1000 Keenesaw Ridge, Columbia, on June 18, 2010. Unthank also admitted that he stole $18,913 from River Regions Credit Union, 2009 Schotthill Woods Dr., Jefferson City, on June 23, 2010.
Investigators connected Unthank to the two Missouri robberies after he was convicted in August 2011 of robbing a bank in Texas, for which he was sentenced to prison for 10 years.
Under federal statutes, Unthank is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Jefferson City, Mo., Police Department, the Columbia, Mo., Police Department and the Missouri State Highway Patrol.Former Clay County Correctional Officer Pleads Guilty to Assaulting ArresteeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former correctional officer with the Clay County, Mo., Sheriff’s Department pleaded guilty in federal court today to violating the civil rights of an arrestee by assaulting him.
Eric M. Bottorff, 33, of St. Joseph, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with deprivation of rights under color of law.
“This unprovoked assault was a clear violation of this victim’s Constitutional rights,” said Dickinson. “The use of excessive force by law enforcement officers is a serious offense that strikes at the heart of Constitutional protections for all citizens.”
According to court documents, Bottorff was working as a correctional officer in the Clay County Detention Facility in Liberty, Mo., on Dec. 22, 2008. Bottorff, while in his official capacity, came into contact with the victim, identified in court documents as J.C., who was brought into the facility as an arrestee on outstanding warrants from a local municipality.
Bottorff admitted today that he physically struck J.C., resulting in serious bodily injury and thereby depriving J.C. of his constitutional right to due process of the law.
Bottorff was acquitted by a trial jury in November 2012 of a state charge of felony assault.
“This federal prosecution transcends the issue of a mere assault to address the significant Constitutional issues that are raised,” said Dickinson. “There remains a substantial federal interest in preventing law enforcement officers from using excessive force and in protecting the rights of all citizens to due process of the law under the Fourteenth Amendment.”
Under the terms of today’s plea agreement, the government agrees to request a probationary sentence. 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 First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Sheldon L. Beer of the Criminal Section of the Civil Rights Division of the Department of Justice. It was investigated by the FBI.Former CEO Sentenced for Embezzling $338,000 from KC CompanyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former CFO/CEO of a Kansas City, Mo., company was sentenced in federal court today for a wire fraud scheme in which he embezzled more than $338,000.
James A. Kilkenny, 50, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to two years. The court also ordered Kilkenny to pay $338,221 in restitution.
On April 24, 2014, Kilkenny pleaded guilty to wire fraud. Kilkenny was an employee of Waechtersbach USA, Inc. from December 1998 until his termination in April 2012, at which time he was the CFO/CEO. Waechtersbach USA, located at 4201 N.E. 34th Street, Kansas City, Mo., is a distributor/vendor that purchases products from the German and Asian companies to distribute to U.S. retailers. Waechtersbach USA’s parent company is located in Germany.
Kilkenny admitted that he engaged in a nine-year-long, multi-pronged plan to embezzle from Waechtersbach between 2003 and 2012.
Kilkenny admitted that, during this time, he overpaid his own salary by $133,592. In 2006, Waechtersbach management notified Kilkenny that he was required to take a pay cut from $135,000 to $115,000 because of company-wide cutbacks. Starting the following year on Jan. 15, 2007, however, Kilkenny began increasing his salary and overpaying himself without the company’s knowledge. He accomplished this by paying himself an extra $35,000 that was broken down into two accounts and disguised as “warehouse” and “office” expenses.
Kilkenny also admitted that he used company funds to pay back loans he had taken against his 401K account ($75,169 loss) and issued unauthorized company checks to himself and others ($29,783 loss). The government contends that Kilkenny also used company funds to pay for his dependents’ health insurance without Waechtersbach’s knowledge or express authorization ($12,041 loss) and used the company’s travel credit card for personal, local expenses ($87,633 loss).
As CFO/CEO, Kilkenny was the person tasked with reporting Waechtersbach’s financials to the company’s owner. His embezzlement came to light when the owner of the company was notified by the U.S. Customs Department that the company had received an $80,000 import tax refund. The owner became suspicious and came to Kansas City to investigate. An internal investigation revealed that Kilkenny received the $80,000 refund but reported that the refund was for only $8,000. Kilkenny instructed the employees in the Kansas City office to lie about the amount if asked. The company then began investigating all of Kilkenny’s spending, which led to the discovery of over $200,000 that Kilkenney had embezzled.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the Kansas City, Mo., Police Department.KC Man Admits Possessing Thousands of Images of Child Porn in Guilty PleaRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to having thousands of images of child pornography on his computer.
Duane E. Elliott, 57, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to two counts of receiving child pornography over the Internet.
According to today’s plea agreement, a detective with the Independence, Mo., Police Department identified Elliott’s computer as sharing child pornography over the Internet. Elliott used a peer-to-peer file-sharing program to make approximately 20 videos of child pornography available for distribution over the Internet on multiple occasions.
Law enforcement officers executed a search warrant at Elliott’s residence and seized multiple computers and electronic storage media, which contained thousands of images of child pornography. Investigators found more than 1,000 videos and more than 2,500 images of child pornography. Some of the videos depicted sexually explicit conduct with children under the age of 12, and some depicted children in bondage or subjected to other sadistic or violent sexual abuse.
Under federal statutes, Elliott is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Independence, 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."Jefferson City Man Pleads Guilty to Attempted Sex Trafficking of a ChildRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to the attempted sex trafficking of a child as the result of an undercover investigation in which he thought he was meeting a 12-year-old victim for illicit sex.
Jeremy Ryan Bappert, 30, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a Nov. 7, 2013, federal indictment.
According to today’s plea agreement, a confidential informant received a text from Bappert and notified the Columbia, Mo., Police Department. Bappert asked the confidential informant to find a young girl, “around 9 to 11 years old,” and asked what $100 would get him. A police detective instructed the informant to send a response to Bappert that a person named “Julie” had a child available.
The police detective assumed the role of “Julie” and had a number of text conversations with Bappert. Bappert asked how old the child would be and said he was looking for “very young.” The undercover detective told Bappert that “Julie’s” daughter was 12 years old.
On July 19, 2013, Bappert sent a text to “Julie” seeking to arrange a meeting. He offered to pay $150 and provide a gram of hash in exchange for meeting at a hotel room in Jefferson City. Bappert, whose driver’s license was suspended, wasn’t able to find a ride on that day. He sent another text on July 24, 2013, saying that he had arranged a ride to Columbia but would have to pay $50 to the driver. He offered to pay “Julie” $100 but promised to pay $200 the next time. He also offered to bring “Julie” a gram of hash.
On July 25, 2013, Bappert agreed to meet at a restaurant in Columbia. When Bappert entered the restaurant, he was arrested. Investigators searched Bappert’s cell phone and recovered 246 images and six videos of child pornography.
Under federal statutes, Bappert is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to life in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Columbia, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former IRS Employee Sentenced for Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Internal Revenue Service was sentenced in federal court today for leading a conspiracy to steal taxpayers’ identity information in order to receive fraudulent tax refunds.
Taylor S. Knight, 33, of Kansas City, Mo., was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Knight to pay $5,000 in restitution to the IRS.
Knight, who pleaded guilty on July 25, 2014, worked as an employee of the IRS at the office at 333 W. Pershing Rd., Kansas City, from March 2009 to January 2012. Knight admitted that she abused her position of trust when she inappropriately accessed the information of three taxpayers as part of a conspiracy to defraud the United States by using the stolen identity information to fraudulently induce the IRS into issuing tax refund payments.
On Sept. 30, 2011, Knight used the information from two of the victim taxpayers (who were married) to submit a bogus online application for three prepaid debit cards. These debit cards were issued and mailed to the residence of the grandmother of her boyfriend and co-conspirator, Michael J. Moore, 28, of Kansas City, Mo. Moore monitored the mail sent to his grandmother’s address and retrieved the three prepaid debit cards. Knight and Moore agreed to use his grandmother’s address rather than use an address associated with Knight in an effort to conceal her role in this conspiracy to defraud the United States. Moore has pleaded guilty to his role in the conspiracy and awaits sentencing.
On Oct. 17, 2011, Knight submitted a 2010 tax return for the same two married victim taxpayers. The IRS approved a $46,572 refund, of which $5,000 was deposited on a debit card that had been obtained by Knight. The IRS attempted to deposit the remaining $41,572 refund on the other debit cards obtained by Knight, but the receiving banks rejected the deposits.
Moore telephoned the IRS on Dec. 7, 2011, and falsely claimed to be the victim taxpayer. He provided the IRS representative with pertinent personal identification information for both victims and requested the IRS to send the remaining tax refund to a new address located in Independence, Mo. He identified this address because it was his former residence and he knew it was unoccupied.
In August 2011, the victim taxpayers filed legitimate amended tax returns. A $46,734 refund check was sent to the Independence address and was obtained by Moore and Knight. Knight agreed to pay $500 to co-defendant Michael Stalcup, 43, of Farley, Mo., to help her cash the refund check. Knight obtained false identification documents – including Social Security cards, credit cards and driver’s licenses – so that they could assume the identity of the victim taxpayers. Knight and Stalcup attempted to cash the stolen Treasury check at a local convenience store. The clerk was concerned about cashing such a large check and he went to his immediate supervisor for guidance. Stalcup told the clerk and his supervisor that, if they would cash the check, they could keep $6,000 of the proceeds. The supervisor decided not to cash the check, but he told them to come back later.
When Knight and Stalcup returned, the owner reported the incident to law enforcement. Police officers arrived about 10 minutes later. When Stalcup saw the police officers he attempted to flee, but was apprehended; both Knight and Stalcup were arrested. Stalcup has pleaded guilty to his role in the conspiracy and awaits sentencing.
Knight also admitted that she submitted a bogus online application for a prepaid debit card in the name of another victim taxpayer. The debit card was approved and mailed to an address in Oak Grove, Mo.; this debit card was never used. Knight admitted that she submitted this false online application to test whether her scheme to defraud the IRS was viable.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Treasury Inspector General for Tax Administration.Clarkson Construction Employee Pleads Guilty to $300,000 Mail Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former director of information technology for Clarkson Construction Company pleaded guilty in federal court today to a mail fraud scheme in which he embezzled nearly $300,000 from the company.
Rodney J. Tatum, 42, of Kansas City, Mo., pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to one count of mail fraud.
Clarkson Construction Company is one of the Midwest’s largest construction companies. Clarkson specializes in large-scale construction projects such as highways, interstates, bridges, and sport facilities. Clarkson employs approximately 130 full-time employees and approximately 650 hourly employees. Clarkson’s 2013 revenue was approximately $250 million.
Tatum was employed by Clarkson from 1991 until a federal criminal complaint was filed on Aug. 12, 2014; he was Clarkson’s director of information technology since 2003. In this role, he oversaw all of Clarkson’s IT activities at all of Clarkson’s business entities.
By pleading guilty today, Tatum admitted that he ordered at least $306,540 worth of expensive computer and communication equipment (including solid state hard drives, other computer equipment, and 23 iPhones) between Oct. 22, 2013, and July 31, 2014. Tatum was ordering with company funds and then reselling this equipment for personal profit without the company’s authorization.
In addition to the scheme to defraud Clarkson Construction, Tatum also defrauded Stedman Motor Sports in Moulton, Ala., out of $6,567 worth of work, including motorcycle customization. The total loss caused by Tatum is at least $313,107.
Tatum admitted that he resold the equipment for personal profit. Bank records indicate that, during the time the computer equipment was being purchased, Tatum’s bank account was credited approximately 57 times in the amount of approximately $269,706 from PayPal. Tatum’s personal Facebook page reflected apparently large spending, including on customized motorcycles, a boat, and a large motor home.
Tatum admitted that he ordered 545 expensive solid state hard drives totaling $249,008 as well as 58 other computer-based items with a value of $14,768. The total cost of the purchases, including sales tax, shipping and handling, was $284,948.
Tatum was also responsible for purchasing Clarkson’s cellular telephones through Verizon. Tatum used Clarkson’s corporate Verizon account to purchase 23 iPhone 5 Golds and two iPad Airs at a total value of $11,317.
Clarkson discovered numerous anomalies while reviewing Tatum’s purchasing card statements and expense reports, including falsified PayPal invoices and unexplained charges from Midwestelec. These additional charges have not yet been finalized as loss and incorporated into the loss figures.
Under federal statutes, Tatum is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.
Kansas Man Charged with Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Johnson County, Kan., man was charged in federal court today for the armed robbery of Bank of Weston.
Marcus Aurellius Moon, 29, of Johnson County, Kan., was charged in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Moon stole approximately $26,000 from the Bank of Weston on Wednesday, Oct. 22, 2014, and that he used a firearm during a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, Moon entered the bank wearing a silver ski mask and carrying a semi-automatic handgun. Moon allegedly walked up to a teller station, pointed his handgun at a bank employee, and said “gimmie the money.” The teller put the money in a plastic bag that Moon was holding, the affidavit says. Moon allegedly noticed another bank employee was counting money, and demanded money from the second employee, who put several stacks of cash into the bag. Moon then allegedly went to another teller station and demanded cash before fleeing from the bank.
The Platte County Sheriff’s Department broadcast to neighboring jurisdictions about the robbery, including a vehicle description and a description of the suspect. Officers with the Atchison, Kan., Police Department set up surveillance around the Amelia Earhart Bridge. They saw Moon driving a vehicle that matched the description given in the broadcast and tried to stop it. However, according to the affidavit, Moon placed the vehicle in reverse, striking police vehicles and escaping. During Moon’s attempts to flee, an Atchison police officer fired his gun. Moon was not struck and was able to escape. Atchison police pursued the suspect for several blocks until his vehicle got stuck in a residential area and Moon was taken into custody.
Officers found a loaded SCCY 9mm handgun inside the vehicle, the affidavit says, along with a silver ski mask and a large amount of money.
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 Bruce Rhoades. It was investigated by the Atchison, Kan., Police Department, the Weston, Mo., Police Department, the Platte County, Mo., Sheriff’s Department and the FBI.KC Man Charged with Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with producing child pornography after taking videos and photos of a teenager who responded to his online advertisement for modeling.
Marcus S. Clarke, 42, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court of Kansas City, Mo., with producing child pornography.
According to an affidavit filed in support of today’s criminal complaint, a 15-year-old girl, identified in court documents as MV (“minor victim”), had been sending and receiving text messages on a borrowed cell phone. The cell phone’s owner notified a Prairie Village, Kan., police detective when she noticed a text conversation about a modeling photo shoot.
MV told law enforcement officers that she responded to a Craigslist advertisement for models for a photo shoot. Clarke allegedly picked her up at a park in Prairie Village on Oct. 3, 2014, and drove her to his apartment in the Northland. When they arrived at the apartment, the affidavit says, Clarke put a flash drive in his television to display photos of nude females to MV. MV described the images to law enforcement officers as “disturbing” because the women were nude and engaged in sexual activity.
Clarke allegedly took both nude and non-nude photos and videos of MV using a digital camera and digital recorder. During one of the video recordings, Clarke allegedly engaged in sexually explicit conduct with MV. According to the affidavit, investigators learned that Clarke had been advertising online for lingerie and nude modeling as far back as September 2012.
An FBI agent used the same cell phone that MV had used to contact Clarke, the affidavit says. Several text messages were exchanged in which Clarke allegedly made arrangements to meet MV again for another photo shoot. When Clarke arrived at the Prairie Village park to meet MV at about 8:45 p.m. on Wednesday, Oct. 22, 2014, he was placed under arrest.
Law enforcement officers executed a search warrant at Clarke’s residence and seized computers and computer storage devices that contained sexually explicit videos of MV.
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 Catherine Connelly. It was investigated by the FBI and the Prairie Village, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."KC Woman Pleads Guilty to $3 Million Fraud Scheme that Forced Employer to CloseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., woman pleaded guilty in federal court today to a nearly $3 million fraud scheme that forced her employer out of business.
Irene Marie Brooner, 52, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to bank fraud.
Brooner, a certified public accountant, worked at Galvmet, Inc., a sheet metal fabrication facility and steel service center located in Kansas City, from 2001 until her termination in February 2014. At its peak in 2008, the company had 26 employees and $14 million in annual sales. Galvmet filed for bankruptcy and ceased operations in 2014. At the time of closing, the company had 18 to 20 employees and $10 million in annual sales.
Brooner’s duties as controller included managing payroll, accounts receivable and payable, and maintaining the ledger at Galvmet.
Brooner admitted that, over a period of more than 10 years (January 2004 until February 2014), she created a total of 389 unauthorized Automated Clearing House (ACH) transactions from Galvmet’s bank account to her personal bank accounts. (An ACH is a batch-oriented funds transfer system that includes direct deposits of payroll from companies.) Those unauthorized ACH transactions included 148 payments to her checking account and 133 payments to her savings account. Brooner also defrauded Galvmet by inflating her salary. From March 2004 to December 2011, Brooner manipulated the payroll account to increase her net pay on approximately 108 payroll checks.
Brooner’s fraud scheme resulted in a loss of at least $1,863,914 to Galvmet. As a result, Galvmet ceased operations. While reviewing bank records during the filing of Galvmet’s Chapter 13 bankruptcy in February 2014, the company’s president noticed unauthorized transfers from Galvmet’s payroll account to Brooner’s personal account. He reported the apparent embezzlement to the FBI.
To keep the scheme going, Brooner also falsified documents to support Galvmet’s operating loan with Missouri Bank & Trust, causing an additional loss to the bank of $1.1 million. The total loss from Brooner’s fraud scheme was at least $2,963,914.
Brooner spent the embezzled funds on personal items. According to today’s plea agreement, Brooner spent some of the proceeds to remodel, stock, furnish and decorate the ornately-finished bar in the basement of her new home. The bar, which she called “the Dirty Duck,” includes seating for approximately 15, a granite bar top, four or five tap lines, a refrigeration system, three flat-screen televisions, a smoke machine at the entrance, two couches and stained wainscoting around the room approximately eight feet tall. Mannequins, positioned throughout the bar, are outfitted with authentic U.S. and German uniforms and weaponry from the World War II era, including a Thompson sub-machine gun and multiple M-1 Garands with attached bayonets. Brooner told FBI agents that her husband, a carpenter, remodeled the bar in 2003 and 2004. From 2004 to 2014, Brooner spent $18,383 on alcohol.
Brooner’s spending included paying off her mortgage for $289,290, buying $81,686 in jewelry, and spending at least $400,392 on clothing and other retail, $97,180 on restaurants, $78,439 on vehicles, $169,389 on furniture and home decor, $62,003 on travel, $38,317 on electronics, $21,346 in ATM withdrawals, $59,571 on spa visits and beauty items, $68,745 on tuition for her children, $18,383 on alcohol, $104,060 to her children, $216,377 in assorted checks under $500, $64,557 in donations, $254,168 in other credit cards, and by purchasing other items.
Brooner purchased a 2004 Lexus R33 sport utility vehicle, on which she made 64 payments totaling $51,813. Brooner also bought 69 pieces of jewelry and accessories from Meierotto’s Midwest Jewelers totaling approximately $29,701 and 82 pieces of jewelry and accessories from Tivol Jewelers totaling approximately $51,984.
Under the terms of today’s plea agreement, Brooner must forfeit to the government her personal residence, a 2004 Lexus, numerous assorted jewelry and a money judgment of at least $2,963,914, all of which represent the net proceeds obtained and loss caused by Brooner’s scheme.
Under federal statutes, Brooner is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million, and an order of restitution of $2,963,914. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.Three Missouri Men Plead Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Missouri men pleaded guilty in federal court today, in separate and unrelated cases, to charges involving child pornography.
USA v. Allison
Larry Allison, 50, of Weaubleau, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to using a minor to produce child pornography.
By pleading guilty, Allison admitted that he used a minor, identified in the federal indictment as “Jane Doe,” to produce child pornography in January 2014.
Under federal statutes, Allison is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution to his victim. 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 the Springfield, Mo., Police Department, the Hickory County, Mo., Sheriff’s Department and the FBI.
USA v. Kern
Paul D. Kern, 22, of Republic, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to possessing child pornography.
According to today’s plea agreement, Kern contacted the Republic, Mo., Police Department on Nov. 1, 2012, to report that he had just received a warning pop-up on his computer ostensibly generated by the FBI while he was visiting a Web site featuring child pornography. He brought his computer to the police station and investigators conducted a forensic preview of the computer that located several images of child pornography.
Kern’s computer contained 55 images and five videos of child pornography. Kern admitted that he had been viewing child pornography for over six months.
Under the terms of today’s plea agreement, the government will not seek a sentence greater than five years in federal prison without parole; Kern will not seek a sentence less than two years in federal prison without parole. Kern is also subject to a fine up to $250,000 and an order of restitution to his victims. 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 the Republic, Mo., Police Department.
USA v. May
Christopher May, 29, of Fair Grove, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to receiving and distributing child pornography over the Internet between Nov. 29, 2012, and March 26, 2013.
Under federal statutes, May is subject to a mandatory sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Nixa, Mo., Police Department, the Fair Grove, Mo., Police 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."Grandview Business Owner Indicted in $3 Million Extortion, Money Laundering SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Grandview, Mo., lawn care company has been indicted by a federal grand jury for a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.
Shelton E. Lewis, also known as “Steve Johnson” or “C,” 39, of Grandview, was charged in a 19-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Sept. 18, 2014. That indictment was unsealed and made public following Lewis’s arrest in Atlanta, Ga., and initial court appearance in the U.S. District Court in the Northern District of Georgia. Lewis remains in custody pending a detention hearing in the U.S. District Court in Kansas City, Mo.
Lewis is the owner of Green Results Landscape & Lawncare, LLC. According to the federal indictment, Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August of 2012, the indictment says, that changed. Lewis allegedly began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, the indictment says, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.
The indictment alleges that Lewis transmitted multiple threats to injure that company’s owner, RW, as part of an extortion scheme.
According to the indictment, the extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact, the indictment says, and did not return with the agreed-upon cocaine. Lewis allegedly told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, the indictment says, but only received a bag of flour.
In August 2012, according to the indictment, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW allegedly paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.
In the fall of 2012, Lewis allegedly told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis allegedly informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money, according to the indictment.
Lewis allegedly told RW that the attorney would contact him in the future. According to the indictment, when a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW allegedly paid the additional, exorbitant sum.
RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, the indictment says, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, according to the indictment, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.
According to the indictment, these threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.
In addition to one count of threatening extortionate communications, the federal indictment charges Lewis with 18 counts of money laundering for engaging in monetary transactions in criminally derived property. Those transactions allegedly include multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., purchases of luxury items such as a Rolex watch and several automobiles – including a Mercedes Benz, an Aston Martin and a Lamborghini – and paying off the mortgage on his Grandview residence.
The indictment also contains a forfeiture allegation, which would require Lewis to forfeit to the government any property derived from the proceeds of the alleged offenses, including a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that has been seized from his bank accounts, a 2005 Bentley, a 2006 Mercedes Benz, a 2007 Aston Martin, a 2011 Aston Martin, a 2012 Lamborghini Gallardo and a 2013 Chevrolet Camaro.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.Russellville Man Sentenced for 21 Firearms, MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Russellville, Mo., man was sentenced in federal court today for illegally possessing firearms and methamphetamine.
Emmanuel Guillen, 22, a citizen of Mexico residing in Russellville, was sentenced by U.S. District Judge Brian C. Wimes to 11 years and three months in federal prison without parole.
On June 3, 2014, Guillen pleaded guilty to possessing methamphetamine with the intent to distribute and to being an illegal alien in possession of 21 firearms.
On March 20, 2014, law enforcement officers executed a search warrant at Guillen’s residence. Officers found a box in a bedroom closet that contained five plastic containers of methamphetamine, weighing a total of 625 grams. A small safe was also found inside the closet, which contained $13,168; when officers searched Guillen, he had $2,504 in his wallet.
During the search, there were three vehicles located outside – two parked in the driveway, and one in the detached garage underneath a tarp. The vehicle in the garage, a 2010 Chevrolet Equinox, had been reported stolen from Waynesville, Mo. One of the vehicles in the driveway, a 2003 GMC Sierra pickup, had an illegally modified Savage combination gun (.410/.22 caliber) under the driver’s seat. The Savage firearm had been cut down to a barrel length of less than 12 inches, and the serial number had been ground off. In the other vehicle in the driveway, a 2004 GMC Sierra pickup, two bags containing a total of 60 grams of methamphetamine were located.
In the residence and in the two vehicles in the driveway officers also discovered six handguns, five shotguns, a sawed-off shotgun with the serial number ground off and eight rifles.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Two Brothers Plead Guilty to $1.2 Million K2 Distribution at Lebanon StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two brothers have pleaded guilty to a mail fraud scheme that involved the distribution of more than $1.2 million of synthetic marijuana, commonly referred to as K2, from a store in Lebanon, Mo.
Eric Scott Reynolds, 32, of Lebanon, Mo., pleaded guilty before U.S. District Judge Beth Phillips on Wednesday, Oct. 15, 2014, to conspiracy to commit mail fraud and conspiracy to commit money laundering. His brother, Stephen Brian Reynolds, 35, of Eldridge, Mo., pleaded guilty on Aug. 15, 2014, to his role in the mail fraud conspiracy and to one count of money laundering.
Stephen Reynolds is the owner of Lucky’s Novelties in Lebanon, which distributed K2. Eric Reynolds is employed at Lucky’s Novelties.
By pleading guilty, Eric and Stephen Reynolds admitted that they participated in a conspiracy to commit mail fraud from March 1, 2011, to Dec. 11, 2012. They defrauded the Food and Drug Administration and the public by using mail deliveries in a conspiracy to distribute several products that were labeled as “incense” or “potpourri” and “not for human consumption,” when in reality these substances were synthetic marijuana intended for human consumption as a drug.
Between Sept. 15, 2011, and July 25, 2012, Eric and Stephen Reynolds deposited $1,245,761 in proceeds from the distribution of K2 into bank accounts and a safety deposit box. Based upon DEA undercover purchases, they charged approximately $1 for every 300 mg of K2. Therefore, they distributed approximately 373 kilograms of K2.
Eric and Stephen Reynolds must forfeit to the government $1,167,990, which they obtained in proceeds from the distribution of K2, real estate in Eldridge, funds in bank accounts, approximately $128,000 that was seized from Stephen Reynolds’s residence and a safe deposit box, a 2012 Jeep Grand Cherokee, a 2007 Ducati 1098 motorcycle, three pistols, two rifles and a shotgun.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigations, the Laclede County, Mo., Sheriff’s Department, the Lebanon, Mo., Police Department and the Lake Area Narcotics Enforcement Group (LANEG).
Travel Agent Pleads Guilty to $360,000 Fraud Scheme, Stole from Willard High School BandRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a travel agent pleaded guilty in federal court today for stealing $360,000 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones.
Calliope R. Saaga, also known as “Ope,” 40, of Saratoga Springs, Utah, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of wire fraud.
Saaga, doing business as Present America Tours, LLC, contracted with the Willard High School Band Boosters in January 2011 to provide travel arrangements for a June 2012 band trip to Hawaii. Saaga was responsible for booking airfare, lodging, transportation, meals, tours, and travel insurance for more than 300 students and chaperones. The Willard High School Band Boosters wired 12 payments of $30,000 each to Saaga between February 2011 and January 2012.
Saaga booked no reservations as required in the contract. Instead, as he received wire transfers from the band boosters, Saaga used the funds to finance his personal lifestyle, including at least 47 days spent gambling in Las Vegas, Nev.
As a result of Saaga’s diversion of funds, the Willard High School band trip was cancelled and the Willard High School Band Boosters suffered a loss of $360,000.
While he was spending the money of the Willard High School Band Boosters to finance his personal lifestyle, Saaga transmitted e-mails about details of the trip to the Willard High School director of bands, which lulled the band boosters into believing that their trip to Hawaii was on schedule.
Under federal statutes, Saaga is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by IRS-Criminal Investigation, the FBI and the Willard, Mo., Police Department.Nevada Man Pleads Guilty to Receiving Child Porn, Faces 12 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Nevada, Mo., man pleaded guilty in federal court today to receiving child pornography after he assumed a false online identity as a woman and persuaded a teenage girl in Georgia to send him pornographic images of herself.
Curtis Bowman, 43, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to receiving child pornography over the Internet.
Law enforcement officers in Cobb County, Ga., were contacted by the victim’s mother. She told officers that her 16-year-old daughter, identified as ”Jane Doe,” had been engaged in sexually explicit e-mail communications with an individual identifying herself as “Amanda Toben.” Jane Doe confirmed that she met “Amanda Toben,” whom she believed was a female resident of Missouri, in an online chat room sometime in January 2014. They began exchanging e-mails and within a matter of days, the e-mail exchanges became sexual in nature. Jane Doe ultimately sent a number of images depicting herself engaged in sexually explicit conduct to “Toben.”
Georgia law enforcement officers identified Bowman and on Friday, March 7, 2014, local law enforcement officers executed a search warrant at Bowman’s residence, where he was arrested. Investigators discovered a number of sexually explicit images of Jane Doe on Bowman’s computer.
Under the terms of today’s plea agreement, the court will sentence Bowman to 12 years in federal prison without parole and may also order Bowman to pay restitution to the victim. 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 Kelleher. It was investigated by the Vernon County, Mo., Sheriff’s Department, the Southwest Missouri Cyber Crimes Task Force, the FBI and the Cobb County, Ga., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."KC Man Sentenced for Firearm, Crack Cocaine after Leading Police on 100 Mph ChaseRead 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 arrested after leading police officers on a 100-miles-per-hour chase in Independence, Mo., was sentenced in federal court today for illegally possessing a firearm and crack cocaine.
Brad L. Akins, 27, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to six years and six months in federal prison without parole.
On April 25, 2014, Akins pleaded guilty to possessing crack cocaine with the intent to distribute and to possessing a firearm in furtherance of a drug-trafficking crime.
Akins was arrested on March 30, 2013, after leading Independence police officers on a high-speed chase. An officer attempted to stop Akins’s vehicle for a speeding violation, but Akins fled, leading officers in pursuit at speeds exceeding 100 miles per hour. Akins was swerving in between cars and driving on the shoulder of the road when the pursuit was terminated as it was becoming too dangerous.
Officers exited at the Blue Ridge Cut-Off on I-70 and were signaled by several citizens, who pointed them to Akins’s vehicle in the Denny’s restaurant parking lot. The vehicle was abandoned, damaged and the air bags deployed. A witness told officers she heard a loud crash, then saw Akins get out of the vehicle and run towards the nearby Drury Inn. The witness also saw a female with several children get out of the vehicle and enter the Denny’s restaurant.
Akins, who was hiding behind a fence, was apprehended. A witness told police officers that Akins had used the public bathroom in the lobby of Drury Inn; he was in the bathroom for only about 10-15 seconds then left the hotel. Officers found a loaded Bersa Firestone .40-caliber pistol hidden in the trash can in the hotel’s bathroom. The gun, which was buried under a large amount of unused Kleenex, had been reported as stolen.
Officers observed skid marks on the concrete median of the roadway and concluded that Akins lost control of the vehicle due to excess speed, causing him to strike the median and blow out several tires. Officers found a plastic bag containing eight separate, smaller bags of crack cocaine in the front center console of Akins’s vehicle.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Independence, Mo., Police Department.Joplin Man Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man pleaded guilty in federal court today for fraudulently receiving (or applying for) federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Dustin Joe Showalter, 36, of Joplin, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Feb. 25, 2014, federal indictment.
By pleading guilty today, Showalter admitted that he committed disaster fraud by making false statements to the Federal Emergency Management Agency (FEMA) in an application for disaster benefits.
Showalter fraudulently received disaster benefits by claiming to have lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact he did not live at that residence. On the basis of his application to FEMA, Showalter received $938 to which he was not entitled.
Under federal statutes, Showalter is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Nevada, Mo., Woman Pleads Guilty to Failure to Pay over Employees' Payroll TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Nevada, Mo., business pleaded guilty in federal court today to failing to pay over more than $357,000 in federal taxes.
Dana L. Thompson Cavener, 51, of Nevada, waived her right to a grand jury and pleaded guilty before U.S. District Judge M. Douglas Harpool to failure to pay over employment taxes.
Cavener was corporate secretary of Cavener’s Library and Office Supplies, Inc., in Nevada, Mo., which she co-owned with her husband. The business employed an average of three to five employees during the 10 years of Cavener’s criminal conduct.
By pleading guilty today, Cavener admitted that she withheld federal income taxes, Social Security taxes and Medicare taxes from the wages of her employees but willfully failed to pay over those taxes to the IRS from 2001 to 2011. The total tax loss was $357,025.
Under federal statutes, Cavener is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.Liberal Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberal, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
Matthew W. Splitter, 25, of Liberal, was sentenced by U.S. District Judge M. Douglas Harpool to seven years in federal prison without parole. The court also ordered Splitter to pay $2,000 in restitution to one of the victims portrayed in the child pornography images.
On March 11, 2014, Splitter pleaded guilty to receiving child pornography over the Internet.
According to court documents, an officer with the Southwest Missouri Cyber Crimes Task Force identified Splitter’s computer as distributing and receiving child pornography over the Internet through a peer-to-peer file-sharing program. A search warrant was executed at Splitter’s residence on Oct. 5, 2011, and his computer was seized. A forensic examination of the computer revealed 62 videos of child pornography and 493 images of child pornography. The images involved a child as young as 1 to 2 years of age. Court documents describe a large number of “hideous and violent” images that involve young children being raped by adults, bondage and animals.
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol and the Joplin, 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."Kimberling City Physician Pleads Guilty to 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 pleaded guilty in federal court today to failing to file tax returns despite earning hundreds of thousands of dollars in income each year.
Phillip Edward Psaltis, 64, of Kimberling City, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with two counts of failing to file an income tax return.
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.
By pleading guilty today, Psaltis admitted that he has failed to file federal income tax returns since 2002. The total tax loss from Psaltis’s unreported income during those years is $1,118,824.
The two specific charges to which Psaltis pleaded guilty today 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. According to today’s plea agreement, Psaltis also owes $551,434 in outstanding federal taxes for the years 2002 through 2008. Because Psaltis did not file his 2012 tax return, the plea agreement says, it is estimated that he will owe approximately $128,109 in tax liability for 2012.
In addition to the federal taxes owed, the plea agreement also says that 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, 20102, and on June 11, 2013 – for delinquency of Missouri state taxes or failure to file state income tax returns.
Under federal statutes, Psaltis is subject to a sentence of up to two years in federal prison without parole, plus a fine up to $200,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Joplin Attorney Sentenced for Stealing $576,000 from ClientsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., attorney was sentenced in federal court today for stealing more than $576,000 from his clients.
Daniel D. Whitworth, 59, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to two years in federal prison without parole. The court also ordered Whitworth to pay $404,957 in additional restitution to his former clients and $72,810 to the government. Whitworth has surrendered his license to practice law in any and all jurisdictions.
Whitworth was the owner of a law practice in Joplin and practiced law for more than 33 years. On March 31, 2014, Whitworth pleaded guilty to wire fraud, money laundering and false statements on tax returns. Whitworth admitted that he embezzled approximately $576,739 from 22 of his legal clients between 2004 and Oct. 18, 2013. Whitworth spent these embezzled funds on personal loans and items unrelated to the legal matters of his clients.
Law enforcement officers investigated complaints made to the Office of Chief Disciplinary Counsel of the Missouri Supreme Court about Whitworth’s theft of client money. Investigators determined from bank records and speaking with former clients that Whitworth repeatedly took money from and for clients. He claimed that money would be used to resolve the matter that the client had pending before the court. In many instances, Whitworth deposited the client’s money either into his attorney trust account or into his personal bank accounts. After depositing his client’s money, Whitworth would then withdraw money and pay for personal expenses and items that were entirely unrelated to his client’s legal case.
According to court documents, Whitworth’s criminal conduct occurred over many years, beginning in 2006 when he entered a partnership to own a bar in Joplin and continuing for at least seven years. He embezzled money from at least 26 different clients, according to court documents, including the estates and trusts of the deceased and their families, individuals who were injured and seeking compensation through the courts and other criminal defendants seeking representation within the criminal justice system.
Whitworth also admitted that he failed to report the embezzled funds on his personal income tax returns for the years 2009-2011, which the plea agreement says totaled $448,835. Whitworth did not file an income tax return for 2012, according to the plea agreement, and therefore did not report the embezzled funds during this year as well.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Missouri Highway Patrol and IRS-Criminal Investigation.
Nine Joplin Residents among those Indicted in Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 11 defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in the Joplin, Mo., area.
Miriam Deleon, 33, of Brownsville, Texas, her brother, Jose Luis Deleon, Jr., 35, and Jack Holguin, 45, Ashley Lynn Mobley, 30, Brian Ashton, 29, Jeremy McClean, 32, Billy Duane Henson, 60, Eric Allen Meyer, 31, Brian Stark, 40, and Juan Leonardo Simmons, 31, all of Joplin, and Israel Belmontes-Cisneros, 32, a citizen of Mexico residing in Sugarland, Texas, were charged in a 12-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Sept. 30, 2014. The superseding indictment was unsealed and made public upon the arrest and initial court appearance of Stark on Tuesday, Oct. 7, 2014.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute methamphetamine from April 1, 2013, to July 31, 2014.
According to an affidavit filed in support of the original criminal complaint, Miriam Deleon was identified as the leader of a drug-trafficking organization and as a major source of supply in the Joplin area as the result of a year-long, multi-agency investigation into an international organization based in Matamoras, Mexico, with members across the United States, including Texas, Oklahoma and Missouri.
In addition to the drug-trafficking conspiracy, Miriam Deleon and Blemontes-Cisneros are charged together in one count of aiding and abetting each other to distribute 50 grams or more of methamphetamine on July 31, 2014.
Jose Deleon, Holguin, Meyer and Ashton are also charged with one count each of being a felon in possession of a firearm. Ashton is also charged with two counts of being a felon in possession of a firearm and one count of possessing a shotgun that was not registered to him. Jose Deleon and Ashton are charged together in one count of aiding and abetting each other to possess firearms in furtherance of a drug-trafficking crime. Simmons and Meyer are also each charged with one count of possessing firearms in furtherance of a drug-trafficking crime.
The federal indictment also contains several forfeiture allegations, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged violations or any property used to commit the alleged violations, including $5,642 that was seized from Holguin by law enforcement officers and $3,658 that was seized from Meyer by law enforcement officers. Simmons would be required to forfeit an AMT .380-caliber handgun; Ashton would be required to forfeit a Mossberg 12-gauge shotgun, a Glock .40-caliber handgun and a Kirikkale 9mm handgun; and Meyer would be required to forfeit a Harrington and Richardson .32-caliber revolver and a Taurus .38-caliber revolver. Holguin and Jose Deleon would also be required to forfeit various ammunition.
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 Ami Harshad Miller and Cindy Hyde. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, the Jasper County Drug Task Force, the Joplin, Mo., Police Department, the Missouri State Highway Patrol, the Kansas Bureau of Investigations, IRS-Criminal Investigations, the Bureau of Indian Affairs and the Newton County, Mo., Prosecuting Attorney.Seven More Individuals Indicted for Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that seven more individuals have been charged along with the original eight individuals and a business previously indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Wesley Adam Upchurch, 27, of Columbia, Mo., Jimmy Dean Moore, 49, and his wife, Tina Irene Moore, 44, owners of Moore-4-You in Queen City, Mo., Sharon Elizabeth Harrington, 27, of Bunceton, Mo., Travis Scott Lovett, 34, of Purdin, Mo., Jessica Lynn Lovett, 31, of Bucklin, Mo., and Michael Sosnowski, 29, of Jefferson City, Mo., were charged in a 13-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Thursday, Oct. 2, 2014. That indictment was unsealed and made public today upon the arrest and initial court appearance of Upchurch.
The superseding indictment replaces an Oct. 18, 2013, federal indictment; the superseding indictment contains additional charges and includes the original defendants: Matthew Ashby Hawkins, 39, his brother, Patrick Ross Hawkins, 32, and his sister, Molly Jane Carmichael, 37, all of Columbia, Alexander Vladimir McMillin, 29, of Columbia, Kent Allen Holtz, 43, of Kaiser, Mo., Chadwick James Schlicht, 44, of Osage Beach, Mo., Charles Sterling Austin, Jr., 61, of St. Charles, Mo., Scott Wesley Hanson, 48, of Versailles, Mo., Thomas Lee McCormack, 29, of Jefferson City, and Puff N Snuff, a retail business in Eldon, Mo.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute a controlled substance analogue, also known as synthetic marijuana or K2, between March 1, 2011, and Oct. 2, 2013. 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.
The federal indictment also alleges that Upchurch, McMillin, Matthew Hawkins, Patrick Hawkins, Carmichael, Austin, Tina Moore, Jimmy Moore, Travis Lovett, Jessica Lovett, and Puff n Snuff participated in a conspiracy to commit mail fraud. They allegedly conspired to defraud the Food and Drug Administration and the public by making false representations that “Mayan” and “4Bidden” products were “incense” and “not for human consumption.” In reality, the indictment says, these products were synthetic marijuana intended for human consumption as a drug and were delivered by commercial carrier such as Federal Express.
The indictment also charges McMillin, Matthew Hawkins, Patrick Hawkins, Carmichael, Austin and Sosnowski with participating in a money-laundering conspiracy from Dec. 7, 2011, to Oct. 2, 2013. According to the indictment, they conspired to engage in financial transactions that involved the proceeds of the drug-trafficking conspiracy.
In addition to the criminal conspiracies, the indictment charges McMillin, Holtz and Hanson with one count each of distributing a controlled substance analogue. McMillin, Hanson and McCormack are also each charged with one count each of possessing a controlled substance analogue with the intent to distribute.
Holtz, Austin, Hanson and McCormack are also charged with one count each of maintaining a place for the purpose of storing and distributing a controlled substance analogue.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged conspiracies, or used to facilitate the alleged conspiracies, including $423,327 seized from Puff N Snuff’s bank account, $177,398 seized from Order Refill’s bank account (controlled by McMillin, Matthew Hawkins, Patrick Hawkins and Carmichael), $14,215 seized from Mozark Products’ bank account (controlled by Sosnowski) and $82,149 seized from McMillin.
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, IRS-Criminal Investigation, the Department of Homeland Security, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department and the Camdenton, Mo., Police Department.Indictment adds Charges against KC Man for Throwing Molotov Cocktails at Congressional OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man previously charged in federal court with throwing Molotov cocktails at the local congressional office of U.S. Rep. Emanuel Cleaver II was indicted by a federal grand jury today on additional charges.
Eric G. King, 28, of Kansas City, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against King on Sept. 17, 2014.
Today’s indictment contains the original charge against King of using a dangerous instrument to forcibly intimidate and interfere with a federal official engaged in the performance of his official duties. The indictment also charges King with one count of attempted arson for attempting to damage or destroy the building, one count of using explosive materials to commit a felony (arson) and one count of illegally possessing an incendiary device.
On Sept. 11, 2014, at 2:52 a.m., a window was broken and two Molotov cocktails were thrown at Cleaver’s congressional office located at 101 W. 31st Street, Kansas City, Mo. The office was unoccupied at the time of the incident. A hammer used to break the window was recovered from the scene, as well as two broken Molotov cocktails. There was not any fire damage done to the building.
According to an affidavit filed in support of the original criminal complaint, video footage shows King retrieve two bottles with a white ignition source from his backpack, then walk around the parking lot for a few minutes in an effort to hide from cars that were passing by. The footage allegedly shows King throwing a hammer through the west window and lighting the devices. The first device thrown appears to bounce off the side of the building. The second device is ignited and is thrown at the window. King allegedly sprints away from the office.
King was arrested as he was leaving his apartment on Sept. 16, 2014.
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 Patrick C. Edwards. It was investigated by the FBI and the Kansas City, Mo., Police Department, the Federal Protective Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former President Pleads Guilty to Embezzling from UnionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees pleaded guilty in federal court today to a wire fraud scheme in which he embezzled tens of thousands of dollars from the union local.
Jesse E. Morgan, 39, of Kansas City, Mo., pleaded guilty before U.S. Chief District Judge Greg Kays to one count of wire fraud.
Morgan was president of the American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from 2008 through Oct. 20, 2012.
By pleading guilty today, Morgan admitted that he engaged in a wire fraud scheme during most of his tenure as president, from November 2008 through Oct. 22, 2012, to steal from AFSCME Local 1707. Morgan issued checks from Local 1707 to third parties for his benefit or himself; made electronic transfers from Local 1707 bank accounts to pay personal expenses; made unauthorized ATM withdrawals from Local 1707 bank accounts; and made unauthorized counter withdrawals from Local 1707 checking and savings accounts.
The government believes the theft exceeded $120,000 but was less than $200,000. Morgan admitted in today’s plea agreement that the loss exceeds $70,000. The federal indictment alleged that the loss was more than $185,000.
Under the terms of today’s plea agreement, Morgan must pay restitution to Local 1707 for the total amount of the loss. If there is no agreement as to the amount of loss, the court will decide the matter by a preponderance of the evidence.
Under federal statutes, Morgan is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor – Office of Labor-Management Standards.Couple Pleads Guilty to $99,000 Social Security FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., husband and wife pleaded guilty in federal court today to making false statements as part of a $99,000 scheme to defraud Social Security.
Reta Jo Carpenter, 53, and her husband, Oren Daniel Carpenter, 52, both of Nevada, each waived their right to a grand jury and pleaded guilty in separate appearances before U.S. Magistrate Judge David P. Rush to making false statements to a federal government agency.
According to today’s plea agreement, Reta Carpenter is unemployed, disabled and married to Oren Carpenter (an employee of the Nevada R-5 School District). She had been receiving Supplemental Security Income (SSI) benefits since 1990.
The Carpenters admitted today that Reta Carpenter falsely stated on her benefit application in 1997 that Oren Carpenter no longer resided with her. As a result, the Social Security Administration removed Oren Carpenter from the household in its records, and Oren Carpenter’s annual income was no longer considered in determining Reta Carpenter’s eligibility for SSI benefits. This resulted in overpayments to Reta Carpenter totaling $99,411 as of August 23, 2012.
Reta Carpenter later repeated this claim on written forms, and both Reta and Oren Carpenter repeated this claim in interviews with federal agents.
Under federal statutes, Reta and Oren Carpenter are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. They were investigated by the Social Security Administration, Office of Inspector General.Texas Man Indicted for Armed Bank RobberyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Waxahachi, Texas, man was indicted by a federal grand jury today for armed bank robbery.
Richard Wayne Swicegood, 37, of Waxahachi, was charged in an indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Swicegood used a weapon to steal $2,770 from Boone County National Bank, 2711 Broadway, Columbia, Mo., on June 6, 2012.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Columbia, Mo., Police Department and the Arkansas State Police.Springfield Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been indicted by a federal grand jury for using a minor to produce child pornography.
Tyler Coons, 23, of Springfield, was charged in a two-count indictment returned under seal by a federal grand jury in Springfield on Tuesday, Sept. 30, 2014. The indictment was unsealed and made public today upon Coons’s arrest and initial court appearance.
The federal indictment alleges that Coons used a minor, identified as “Jane Doe #1,” to produce child pornography between Jan. 1 and June 20, 2014. Coons is also charged with one count of receiving and distributing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Springfield Man Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Jarod “Bull” Michel, 31, of Springfield, was charged in an indictment returned under seal by a federal grand jury in Springfield on Tuesday, Sept. 30, 2014. The indictment was unsealed and made public today upon Michel’s arrest and initial court appearance.
The federal indictment alleges that Michel received and distributed child pornography over the Internet between July 18, 2013, and May 20, 2014.
According to court documents, Michel’s computer was identified by two separate law enforcement agencies conducting independent undercover investigations concerning the distribution of child pornography using peer-to-peer file-sharing software. Investigators allegedly downloaded several videos of child pornography that were being shared over the Internet by Michel’s computer.
The indictment also contains a forfeiture allegation, which would require Michel to forfeit to the government any property used to commit the alleged offense, including a laptop computer.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Springfield Man Sentenced for Crack Cocaine, FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing crack cocaine and a firearm.
Ulysses Johnson, 37, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and six months in federal prison without parole.
On April 7, 2014, Johnson pleaded guilty to being a felon in possession of a firearm and to possessing crack cocaine with the intent to distribute. An undercover Springfield police officer purchased crack cocaine from Johnson on three separate occasions in December 2011 and January 2012. Officers executed a search warrant at Johnson’s residence on Jan. 18, 2012, and found a loaded FIE Tanfoglio .22-caliber revolver in the nightstand of the master bedroom, a partial box of .357-caliber and .22-caliber ammunition the hallway bathroom and a large bag that contained 12.64 grams of crack cocaine, divided into eight smaller individual baggies, hidden in an oven mitt in the kitchen. Johnson was placed under arrest.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Johnson has prior felony convictions for aggravated robbery and taking a driving a vehicle without consent, two prior felony convictions for delivery of a controlled substance and two prior felony convictions for possession of THC.
This case was prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Cindy Hyde. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Nevada Man Sentenced to 12 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., man has been sentenced in federal court for receiving and distributing child pornography.
James D. Stevens, 50, of Nevada, Mo., was sentenced by U.S. District Judge Douglas Harpool on Tuesday, Sept. 23, 2014, to 12 years in federal prison without parole. The court also ordered Stevens to forfeit to the government a laptop computer, a tablet computer, various hard drives, nearly a thousand CDs and DVDs and other electronic memory devices, all of which were used to commit the offense.
On April 26, 2014, Stevens pleaded guilty to receiving and distributing child pornography. According to court documents, law enforcement officers identified Stevens’s computer as repeatedly distributing and receiving numerous videos and images of child pornography. On six separate occasions during their investigation, law enforcement officers received videos containing child pornography from Stevens’s computer through a file-sharing program, with up to 10 videos of child pornography received on each occasion. The videos contained images of children, from eight to 14 years old, being sexually exploited, molested, raped and abused. Additional videos of child pornography were discovered on Stevens’s computers after they were seized and examined.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Medical Center Inmate Sentenced to 19 Years for Assaulting Federal EmployeeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate at the U.S. Medical Center for Federal Prisoners in Springfield was sentenced in federal court today for assaulting a federal correctional counselor at the facility.
Willard Begay, 34, an inmate at the U.S. Medical Center for Federal Prisoners in Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 19 years and seven months in federal prison without parole. The court also ordered Begay to pay $2,476 in restitution for the medical injuries of the victim.
On June 12, 2014, Begay was found guilty at trial of punching a counselor in the face and throwing a computer printer at the counselor’s face.
A counselor at the prison facility met with Begay on Oct. 1, 2012, to discuss the friction Begay was having with fellow inmates and to move Begay to another unit in order to eliminate the brewing conflict between Begay and fellow inmates. At the conclusion of their meeting, the counselor was attempting to secure Begay to move him to the new unit. The counselor grabbed Begay’s left arm in order to handcuff him, when Begay abruptly turned toward the counselor and punched him in the face with a closed fist. The counselor lost his balance and fell back a few feet. While he was still dazed from the punch, Begay removed a printer from a table in the office, raised it above his head, and smashed the printer onto the counselor’s face.
The counselor radioed for assistance and correctional officers entered the room and handcuffed Begay after a struggle. The counselor was transported to the hospital emergency room. A physician determined that he sustained an orbital floor fracture. The physician closed the wound with sutures and recommended the counselor to follow up with a plastic surgeon.
This case was prosecuted by Assistant U.S. Attorneys Abram McGull, II and Patrick Carney. It was investigated by the FBI.
Kingsville Couple Plead Guilty to $567,000 Bank Fraud for Lee's Summit Construction ProjectRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kingsville, Mo., husband and wife pleaded guilty in federal court today to a $567,000 bank fraud scheme related to his work on a Lee’s Summit, Mo., subdivision.
Dennis R. Key, 51, and his wife, Michal Ann Key, 49, both of Kingsville, pleaded guilty in separate appearances before U.S. Chief District Judge Greg Kays to bank fraud.
By pleading guilty today, the Keys admitted that they engaged in a bank fraud scheme from August 2006 to November 2009 in which they stole as much as $567,767. Dennis Key is the owner of DM & Associates, LLC, a land surveying and engineering consulting business in the Kansas City area. Michael Key did administrative and clerical work for the business, including bookkeeping, paying bills and writing checks.
On Jan. 17, 2005, Dennis Key entered into an employment agreement with Burkart Enterprises, Inc., to provide construction management services for a subdivision in Lee’s Summit for which he would be paid $35,000. On Feb. 2, 2005, Dennis Key entered into another employment agreement with Burkart to be a builder’s representative for the construction of a house in Lee’s Summit, for which he would be paid $100,000.
In August 2006, Dennis Key arranged for JM Contractors to act as general contractor for the construction work and to subcontract work to be performed. He instructed JM Contractors to add an extra five percent to its fee, which would be paid to Dennis Key. Dennis Key also instructed JM Contractors that its fee and the additional fees were not to be identified on the bills submitted by the company, but rather were to be added into each line item on the bills.
The Keys also prepared false, inflated bills and invoices in the names of Contracting Services and Mid America Construction, which were actually shell companies they created. They presented the inflated bills and invoices to Burkart, representing that the bills and invoices were for services rendered. Burkart reviewed the false, inflated bills and invoices, and, believing the payments were to entities that had performed the work stated, wrote checks for the amounts presented then gave the checks to the Keys.
Dennis Key arranged with BKB Concrete and Construction to perform work on the project, instructing the owner of BKB Concrete and Construction to submit all bills to him. On Aug. 18, 2008, Michal Key opened a business checking account in his name DBA BKB Concrete. This name was intentionally similar to and sounded like the name “BKB Concrete and Construction.” When they received BKB Concrete and Construction bills, the Keys prepared false, inflated bills for the services in the name BKB Concrete and submitted the inflated bills to Burkart rather than the true bills for the services rendered. Burkart reviewed the inflated bills and, believing the payments were to the entity that had performed the work, wrote checks for the amounts presented to him and gave the checks to the Keys. They deposited the checks into their BKB Concrete account then transferred some of the funds to their DM & Associates bank account in order to pay the bills from BKB Concrete and Construction.
Dennis Key obtained other subcontractors and entities to perform work on the property and instructed the subcontractors to submit their bills to him. When the Keys received bills from other subcontractors and entities they prepared false and inflated bills and submitted false, inflated invoices to Burkart, representing that the bills were for the services rendered. Burkart reviewed the inflated bills and, believing the payments were to the entity that had performed the work, wrote checks for the amounts presented then gave the checks to the Keys.
Under federal statutes, the Keys are each subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. 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 Linda Parker Marshall. It was investigated by the U.S. Secret Service and the Lee’s Summit, Mo., Police Department.Nixa Contractor Sentenced or Stealing $73,000 from Elderly Tornado VictimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., contractor who was hired to repair tornado damage at the Joplin residence of an elderly couple was sentenced in federal court today for a fraud scheme in which he stole more than $73,000.
Terry Alton Parker, 59, of Nixa, was sentenced by U.S. Chief District Judge Greg Kays to five years and eight months in federal prison without parole. The court also ordered Parker to pay $34,420 in restitution, in addition to the $38,640 in restitution that Parker paid prior to today’s hearing.
On Sept. 26, 2013, Parker pleaded guilty to bank fraud, wire fraud and money laundering.
Parker operated Alliance Contracting of Nixa, LLC, and was hired by a Joplin, Mo., resident to repair significant damage to his house caused by the May 22, 2011, tornado that destroyed a large part of Joplin. The victim, identified as “H.B.” in court documents, was 84 years old at the time; he was caring for his 88-year-old wife, who required home care and nursing assistance.
Parker agreed to repair the victim’s home for a price that was to be no more than the amount H.B. was reimbursed by his insurance company for the damage. There was no written contract, and most of the money paid to Parker was disbursed based on Parker’s verbal requests for funds. Between June 13, 2011, and Feb. 2, 2012, H.B. paid Parker a total of approximately $80,300 for his services.
After being hired, Parker was at H.B.’s home on a regular basis from June 2011 through February 2012. Parker befriended H.B. and soon began using his downstairs office area as his own office. According to court documents, Parker also began to store equipment in H.B.’s storage shed, was allowed to interact directly with the insurance company, collected H.B.’s mail each day and brought a caregiver into the home to care for H.B.’s wife. When a caregiver expressed concern regarding Parker’s taking advantage of the victim, according to court documents, Parker attempted to intimidate her by stating that she should be careful how she treated him (Parker), because one day H.B.’s house would belong to him.
In November 2011, without H.B.’s knowledge or permission, Parker stole a check from H.B.’s checkbook and wrote a check to himself for $38,640. Parker forged H.B.’s signature and deposited the check into his own bank account.
Parker persuaded H.B., who did not own a computer, to get Internet access at his home so Parker could order supplies online and conduct other business via the Internet. H.B. agreed to pay for the service. Parker set up an online banking account for H.B.’s checking account, without H.B.’s knowledge or permission, and directed all bank statements and other notifications from the bank to be delivered to an e-mail address that Parker set up in H.B.’s name (also without his knowledge). Parker established a PayPal account, without H.B.’s knowledge or permission, which was linked to H.B.’s checking account.
Over the next three months, Parker electronically siphoned $34,420 from H.B.’s checking account into the PayPal account. Most of those funds ($32,545) were then transferred from H.B.’s PayPal account to Parker’s own PayPal account.
In January 2012, loss prevention personnel from PayPal attempted to verify the validity of one of Parker’s transactions. Parker called the PayPal call center located in Omaha, Neb., and in a recorded conversation, falsely and fraudulently identified himself as H.B.
On Feb. 27, 2012, H.B. visited the bank to ask why he was no longer receiving paper bank statements. Prior to departing for the bank, he told Parker where he was going, and noticed that Parker was visibly shaken. At the bank, H.B. learned that someone had discontinued his receipt of paper bank statements online, and had electronically transferred $34,420 out of his account. (He later discovered that Parker also stole and forged the $38,640 check.)
Before H.B. returned home, Parker had fled to Texas after stealing various items of H.B.’s personal property. Before departing Missouri, Parker confronted H.B.’s daughter; he falsely claimed to her that H.B. owed him money. Parker also filed a false complaint with the Missouri Department of Health and Senior Services, alleging that H.B. had abused his wife by striking her and failing to give her proper medication as prescribed by her physician. (The complaint was investigated and found to be not substantiated.)
Not counting the stolen items of personal property (which are not a part of this case), Parker stole a total of approximately $73,060 from H.B.
Parker has a prior federal conviction in this district for wire fraud and theft from an FDIC-insured institution. In that case, an eight-count indictment was returned by the federal grand jury on Sept. 12, 2002, charging Parker with five counts of wire fraud and three counts of bank fraud over the course of three years, from 1998 through 2001. The scheme charged in that case involved Parker’s falsification of multiple invoices for goods and services in order to obtain advance payments under a construction contract, causing an aggregate loss of $46,627 to a company called DMZ, LLC. That case also involved his filing of a false police report and subsequent alteration and deposit of a $2,075 insurance check, which he increased to $20,075, causing a loss of $18,000 to Empire Bank. Parker pleaded guilty to all of the conduct and was sentenced on Jan. 30, 2003, to a term of probation and payment of restitution.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the Joplin, Mo., Police Department.
Two More Men Charged with Armed Craigslist Robberies, Shooting of Two VictimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Kansas City, Mo., men have been indicted for their roles in a conspiracy to commit a series of armed robberies against victims who were contacted via craigslist.
Thomas Thorpe, 25, and Debvon Buckner, 23, both of Kansas City, Mo., and Troy Wright, 21, of Grandview, Mo., were charged in a 13-count indictment returned by a federal grand jury in Kansas City, Mo., on Friday, Sept. 19, 2014. The indictment was unsealed and made public on Tuesday, Sept. 22, 2014, upon the arrest and initial court appearance of Wright. Thorpe was also arrested yesterday but has not yet had an initial court appearance.
The indictment replaces a federal criminal complaint that was filed against Buckner on Aug. 20, 2014, and adds additional defendants and charges, including allegations of an additional armed robbery on June 26, 2014.
The indictment alleges that Thorpe, Wright and Buckner participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. According to the indictment, six armed robberies occurred after conspirators posted false advertisements to buy or sell items on craigslist.org in order to entice their victims to meet so that conspirators could steal money and electronics. Thorpe and Wright allegedly participated in all six of those armed robberies; Buckner is alleged to have participated in five of the armed robberies.
Thorpe, Wright and Buckner are each charged with five counts of aiding and abetting a robbery, four counts of aiding and abetting each other to brandish a firearm during a crime of violence and one count of aiding and abetting each other to discharge a firearm during a crime of violence. Thorpe and Wright are also charged together in an additional count of aiding and abetting a robbery and an additional count of aiding and abetting each other to brandish a firearm during a crime of violence.
July 16, 2014, Armed Robbery and Shooting
On the evening of July 16, 2014, according to an affidavit filed in support of the original criminal complaint, three victims (identified as M.N., M.K.N. and D.N., a minor) met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was listed for sale in a craigslist advertisement. Thorpe and Wright were allegedly hiding, armed with firearms. M.N. and D.N. took a test drive in the vehicle with Buckner, the affidavit says, and M.N. made a purchase offer. Buckner allegedly agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, Thorpe and Wright allegedly appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, the affidavit says, but conspirators shot the two adult victims, striking M.N. several times and striking M.K.N. once. Conspirators allegedly took money and personal property (including a purse that contained $500) from the victims then shot M.N. again, striking him an additional time. Conspirators allegedly fled from the area in the Hyundai Sonata. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to discharge a firearm during a crime of violence in relation to that robbery.
According to the affidavit, the telephone number used to contact the victims was the same number used to contact a separate victim in another armed robbery earlier the same day.
July 16, 2014, Armed Robbery #2
On the afternoon of July 16, 2014, this victim told police that he had listed an XBOX One for sale on craigslist. He arranged to meet a prospective buyer at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, the affidavit said, Buckner approached him and asked to see the XBOX. The victim handed the XBOX to Buckner. Thorpe and Wright allegedly appeared and each pointed a firearm at the victim and demanded the XBOX One, XBOX games, and the accessories. They took those items, the indictment says, then fled to their vehicle.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
According to the affidavit, Kansas City Police detectives saw another craigslist advertisement the next day for a car for sale, which used the same telephone number. In the background of the photograph was a residence, which the detectives later identified as Buckner’s residence. They obtained location data for the cell phone and set up surveillance in the area of East US 40 Highway and Sterling. When Buckner boarded a metro bus, police officers took him into custody. He allegedly possessed the phone that was used to contact several victims and wore the Samsung Galaxy watch that had been stolen from the victim of an earlier robbery.
In addition to the two robberies on July 16, 2014, the indictment alleges that conspirators committed four earlier robberies.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim told police that he had been robbed while trying to buy an XBOX from a craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments, the affidavit says, after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. One conspirator was in hiding and armed with a firearm, the indictment says, and another conspirator was waiting in the getaway vehicle. Buckner refused to do the deal, the affidavit says. When the victim began walking back to his car, another conspirator appeared, pointed a firearm at him and demanded money. While this man pointed the gun at him, the affidavit says, another conspirator came over and frisked the victim. The two men took the watch and the cash, and then fled.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 30, 2014, Armed Robbery
One victim allegedly met Buckner on June 30, 2014, to purchase a cell phone that was advertised on craigslist. She decided not to purchase the phone and began to walk away, when the other conspirators pointed firearms at her and demanded money. According to the affidavit, after she gave the men $100 they demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and when alarm sounded, the affidavit says, all three of the men ran.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date, according to the affidavit. She told police officers that she had been contacted about purchasing an XBOX One that she had posted for sale on craigslist. When she arrived (with three other persons, one of whom was a minor) at Ridge Pointe Apartments, Buckner allegedly showed her that he had cash to make the purchase. As soon as she took out the XBOX, he allegedly took it and ran. Thorpe and Wright, armed with handguns, allegedly approached and pointed the guns at the victims in the vehicle. They demanded all of their money, purses, and XBOX games and controllers. One of the victims asked for her purse back, the affidavit says, and one of the conspirators said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
Thorpe, Wright and Buckner are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
June 26, 2014, Armed Robbery
According to the indictment, conspirators posted a Samsung plasma TV for sale on craigslist and, the same day, communicated with a victim for its purchase. The victims (identified in the indictment as C.S., J.G. and A.J., a minor) were led to an apartment on E. 42nd Street, Kansas City, Mo., where another conspirator allegedly was waiting armed with two firearms. When J.G., holding the minor A.J. in his arms, took out his wallet, the other conspirator appeared with a firearm in each hand, pointed them at the victims, and stole money from C.S. and J.G.
Thorpe and Wright are each charged with one count of aiding and abetting that robbery, and one count of aiding and abetting each other to brandish a firearm during a crime of violence in relation to that robbery.
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 Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.Nevada Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., man who is a registered sex offender was sentenced in federal court today for receiving and distributing child pornography over the Internet.
David Lee Knowles, 56, of Nevada, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also ordered Knowles to forfeit to the government an iPad2, a desktop computer, an iPhone and an external hard drive, all of which were used to commit the offense.
Knowles, a registered sex offender as a result of his 1997 conviction for sexual assault, pleaded guilty on April 1, 2014. Knowles admitted that he received and distributed child pornography between May 31, 2012, and Jan. 3, 2013.
A law enforcement officer was conducting an undercover investigation into the distribution of child pornography with peer-to-peer, file-sharing networks. Knowles’s computer was identified as sharing videos of child pornography over the Internet.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, 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."Maryville Woman Charged in Murder-for-hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today a Maryville, Mo., woman has been charged in federal court in a murder-for-hire scheme in which she negotiated with an undercover federal agent and, without realizing it, her intended victim.
Kristina M. Swinford, 32, of Maryville, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Sept. 22, 2014. Swinford was arrested on Friday, Sept. 19, 2014, and remains in federal custody pending a detention hearing on Thursday, Sept. 25, 2014.
The federal criminal complaint charges Swinford with contacting two individuals to kill the wife of her ex-boyfriend. Her intended victim is identified in court documents as “AM.”
According to an affidavit filed in support of the criminal complaint, Swinford met three times with an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives to negotiate the murder-for-hire. Following her third meeting with the ATF agent, the affidavit says, Swinford also negotiated via Facebook with another person, without realizing that she was actually communicating with her intended victim, who had created an online profile under another person’s name.
On Aug. 25, 2014, a cooperating source in Taylor County, Iowa, reported to law enforcement authorities about traveling to Maryville and having a discussion with Swinford. According to the affidavit, Swinford complained about AM and made it clear she wanted AM kidnapped, killed or gone. AM had gone through a brief separation from her husband, the affidavit says, and during that time he was involved in a relationship with Swinford. AM and her husband had been granted ex parte orders of protection in an effort to keep Swinford from stalking or harassing them.
The cooperating source was instructed to meet with Swinford again and provide her with the contact information of an undercover ATF agent if she still wanted someone to kill AM. The undercover agent contacted Swinford on Aug. 28, 2014, and arranged to meet.
Swinford allegedly met with the undercover agent on three separate occasions, each time sitting in a vehicle in a Wal-Mart parking lot in Bethany, Mo., and discussed several scenarios for killing AM. Swinford allegedly agreed to pay $10,000 prior to AM being killed and another $10,000 afterward. She provided the undercover agent with a photo of AM, a map of her house and other information, the affidavit says. Swinford allegedly paid the undercover agent $150 for his expenses. At the third meeting on Sept. 10, 2014, the affidavit says, the undercover agent told Swinford he could pick up AM after she dropped her kids off at school, then kill her and cut off her hands and head and toss them into the river to make it look like Mexican drug dealers. Swinford allegedly agreed with this plan and the undercover agent told her to get a hold of him when she got the money.
On Sept. 19, 2014, AM reported to local law enforcement authorities that Swinford had been discussing AM’s murder on Facebook. According to the affidavit, AM had created a false Facebook account for a real person she knows, who is identified in the affidavit as WB. AM told authorities she created the account because her husband had blocked his Facebook account so she could not view her husband’s Facebook page.
AM reported that on Sept. 18, 2014, she had logged in to delete the fake account but found a message from Swinford from Aug. 9, 2014, addressed to whom Swinford clearly thought was the real WB. AM used the false Facebook account to engage Swinford in a lengthy conversation. During the conversation, the affidavit says, Swinford expressed her dislike for AM. According to AM, further in the conversation, she and Swinford discussed WB (the real person but fake Facebook account) harming her (AM).
AM told police that she was terrified and had no way of knowing if Swinford had spoken to anyone else about having her hurt or murdered. ATF agents had not notified AM or her husband that ATF had been conducting the investigation into Swinford hiring the undercover agent.
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 Alison Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maryville, Mo., Department of Public Safety.
Former Wichita Man Sentenced for $2.7 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Wichita, Kan., man was sentenced in federal court today for his role in a $2.7 million mortgage fraud scheme.
Terrence Matthew Brown, also known as Terry Brown, 49, of Round Rock, Texas, formerly of Wichita, was sentenced by U.S. District Judge Brian C. Wimes to seven years and three months in federal prison without parole. The court also ordered Brown to pay $1,201,635 in restitution.
On May 2, 2013, Brown was found guilty of conspiracy to commit wire fraud and five counts of wire fraud.
Brown participated in a mortgage fraud conspiracy in 2006 in which mortgage lenders were defrauded in 10 separate loans for five properties, which were obtained by false statements in loan applications and other documents. Mortgage loans totaling $2.7 million were approved to purchase properties in Greenwood, Mo., Kansas City, Mo., Overland Park, Kan., and Leawood, Kan., all within a period of three months.
The scheme involved Brown buying homes at inflated prices, obtaining mortgage loans by fraud at the inflated amounts, and receiving kickbacks from the excess loan proceeds without the lenders’ knowledge. In order to qualify for the loans, Brown lied to lenders about his income, his employment, his assets and liabilities, his intent to occupy the properties and other matters.
Brown and co-conspirators structured the home purchases in such a way that Brown would receive money from the loan proceeds without the knowledge or consent of the lenders. Brown received more than $200,000 in illegal kickbacks. In order to receive the kickbacks without the lenders finding out, Brown submitted false invoices to the title companies closing the loans. The invoices were in the names of businesses that claimed to be entitled to payment for services supposedly rendered.
All the loans went into default and the properties were foreclosed.
According to court documents, Brown would not have qualified financially for the loans if he had been truthful, as his income would not have supported the loans.
Brown failed to live in any of the five properties as his primary residence. Brown was a sex offender required to register where he lived; he reported to law enforcement that he lived in two of the properties for brief periods, but he failed to make any of them his primary residence for a year as required by the mortgages. He also made only $28,778 in total mortgage payments – barely more than one month of combined payments on the loans – before he defaulted on each of the loans.
This case was prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI.Neosho Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Neosho, Mo., couple have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine in Jasper and Newton counties.
Gregory M. Holcomb, 53, of Neosho, was sentenced today by U.S. District Judge Gary A. Fenner on Friday, Sept. 19, 2014, to 20 years in federal prison without parole. Co-defendant Malinda Sue Willis, 49, also of Neosho, was sentenced on Thursday, Sept. 18, 2014, to six years in federal prison without parole.
On April 17, 2014, Holcomb pleaded guilty to participating in a conspiracy to distribute methamphetamine from January 2009 to July 13, 2011. Holcomb and other conspirators distributed methamphetamine primarily in Jasper and Newton counties. The total amount of methamphetamine that Holcomb knew was being distributed (or was responsible for assisting to distribute) during the conspiracy is in excess of 1.5 kilograms.
According to court documents, Holcomb possessed numerous firearms, traded firearms for drugs and was involved in dismantling stolen vehicles in a garage on his property. A July 11, 2011, search warrant executed at the residence Holcomb shared with Willis yielded 21 firearms, including several shotguns and an SKS assault rifle, multiple rounds of ammunition and items related to the packaging and distribution of narcotics. Agents also located approximately 200 grams of methamphetamine that was 95 to 100 percent pure, along with $1,949.
After being indictment, Holcomb fled from the Western District of Missouri and moved with Willis to Honduras for three months to evade prosecution.
Willis also pleaded guilty to her role in the conspiracy. Willis admitted that she assisted Holcomb, who was the main source of supply of methamphetamine in the conspiracy, by selling or distributing methamphetamine she obtained from Holcomb to other persons. Willis also assisted Holcomb in setting up methamphetamine transactions with other persons.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the police departments of Ozark, Springfield and Joplin, Mo.; the sheriff’s departments of Barry, Lawrence, Jasper and Ottawa County, Mo.; COMET (the Combined Ozarks Multi-jurisdictional Enforcement Team); the SWDTF, the Jasper County Drug Task Force, the Oklahoma Bureau of Narcotics; the Missouri State Highway Patrol; the Oklahoma State Highway Patrol; the Oklahoma State Bureau of Investigation; the Eastern Shawnee Tribal Police; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS-Criminal Investigation; and the Bureau of Indian Affairs.Another U.S. Medical Center Supervisor Pleads Guilty to Concealing Assault on InmateRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a second supervisor at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to dissuading an inmate at the facility from reporting an assault by a correctional officer.
Justin K. Flowers, 39, of Ozark, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to dissuading a federal inmate from reporting the possible commission of a federal offense. In a separate but related case, James C. Myrick, 42, of Nixa, Mo., pleaded guilty to the same offense on Wednesday, Sept. 17, 2014.
According to today’s plea agreement, Shawn Springer, an inmate at the U.S. Medical Center for Federal Prisoners, was struck by a correctional officer, identified as Officer D.P., on Dec. 3, 2012. The incident occurred while Springer was in the lieutenants’ office, which Flowers and Myrick shared. Springer had been involved in a dispute with a nurse, the wife of the correctional officer, the prior day.
Flowers and Myrick have each admitted that, immediately after the incident, they encouraged Springer not to tell anyone that he was struck in the head by Officer D.P. Springer was offered improved cell accommodations for his silence. After leaving the lieutenants’ office, Springer was moved to a cell where he had access to a television. As a result of Flowers and Myrick’s inducement, Springer told a nurse that he had hit his head while cleaning his bunk, instead of telling the nurse that he was hit in the head by Officer D.P. in their presence.
The next day, Springer reported to a psychologist that he had been assaulted by Officer D.P. During the investigation that followed, Myrick and Flowers each submitted a memo that claimed Springer’s head injury was pre-existing and made no mention of Officer D.P. using force on Springer. This statement was contradicted by other staff members who provided sworn affidavits that supported the conclusion that Springer’s injury was not pre-existing to his visit to their office.
An investigator from the U.S. Department of Justice Office of the Inspector General was dispatched to the Federal Medical Center and interviewed Flowers, Myrick and others. Flowers and Myrick each initially claimed no force was used on Springer. They claimed that Springer’s injury was pre-existing. Myrick later admitted that he failed to report that Springer had been struck by Officer D.P. in his office. He also admitted that his original memo was intentionally misleading.
Officer D.P. admitted striking Springer but denied trying to conceal the matter. Officer D.P. told the investigator that he asked if a memo was required and was told by Myrick that it wasn’t required. In a subsequent interview, Flowers then admitted his statements from the first interview were false and that his original memo was intentionally misleading. Flowers stated that Officer D.P. had in fact struck Springer.
Under federal statutes, Flowers and Myrick are each subject to a sentence of up to three 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.
These cases are being prosecuted by Assistant U.S. Attorney Abram McGull, II. They were investigated by the U.S. Department of Justice Office of the Inspector General and the U.S. Medical Center for Federal Prisoners – Special Investigation Unit.Neosho Man Sentenced for Embezzling $4.9 Million from his EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man was sentenced in federal court today for stealing more than $4.9 million from his employer.
David VanWinkle, 61, of Neosho, was sentenced by U.S. District Judge Gary A. Fenner to five years and 10 months in federal prison without parole. The court also ordered VanWinkle to forfeit to the government $4,911,621, a 2013 Holland tractor, a 2007 Hummer H3, a 2012 John Deere no-till seed drill, and $28,086 that was seized from various bank accounts.
VanWinkle was the comptroller for Frontier Leasing Incorporated (FLI) in Joplin, Mo., where he had worked for 22 years and had a close, personal relationship with the owner. On Feb. 28, 2014, VanWinkle pleaded guilty to wire fraud, money laundering and failure to pay taxes. VanWinkle admitted that he stole $4,911,621 from FLI between June 2008 and December 2013, which he spent on personal expenses and gambling.
According to court documents, VanWinkle’s embezzlement caused severe financial distress for the company, its owners and its employees. During the more than five years that he was embezzling, FLI struggled financially. FLI, between its employees and contractors, provided a living for over 100 individuals and their families in the Joplin area. While VanWinkle was stealing millions, FLI and its employees were voluntarily taking pay cuts to ensure that this business would not close its doors. As the comptroller for FLI, the government’s sentencing memorandum states, VanWinkle would have been acutely aware of the ramifications of his greed and its direct impact on FLI’s employees and their families.
According to court documents, VanWinkle’s fraud was detected after the owners of FLI were contacted due to the company’s failure to pay employee taxes because VanWinkle had stolen the money that was intended for that purpose. VanWinkle was responsible for collecting payroll taxes for FLI and paying over those payroll taxes to the IRS. VanWinkle withheld those taxes but failed to turn them over to the IRS. VanWinkle admitted that he collected, but failed to pay over, a total of $435,896 in federal tax, Social Security and FICA withheld from FLI employees’ paychecks.
Federal agents then began investigating unusual deposits VanWinkle made into his business accounts for two businesses, VanWinkle Accounting and VanWinkle Farms.
VanWinkle, acting as the comptroller for FLI, received payments from FLI’s customers in the form of checks. VanWinkle deposited some of those checks into FLI’s legitimate business accounts, but deposited other checks into another, secret checking account under the name of FLI that VanWinkle had opened at another bank. VanWinkle was the sole person on this secret account; no one else was aware that FLI had the account. VanWinkle was not authorized to open an account or deposit any of FLI’s customer payment checks into the account.
VanWinkle admitted that he withdrew money from the secret bank account to deposit into his business accounts.
VanWinkle failed to report the embezzled funds from FLI on his personal income tax returns he filed with the Internal Revenue Service for the years 2008, 2009 and 2010. VanWinkle did not file income tax returns for the years 2011 and 2012, and therefore did not report the embezzled funds during these years, either.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.