Western District of Missouri
Press releases recorded for this federal judicial district.
Project Save Our ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., man who has been living in Thailand was sentenced in federal court today for fleeing the United States in 2007 to avoid paying child support.
Randy Lee Essary, 61, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 21 months in federal prison without parole. The court also ordered Essary to pay $170,891 in child support.
Essary was a resident of Chon Buri, Thailand, where he was employed as the senior vice president of development for Eclipse Hotels and Development, which is based in Manila, Philippines and in Hong Kong.
Essary, who pleaded guilty on Feb. 11, 2014, admitted that he has failed to pay any court-ordered child support for his son for more than nine years, since January 2005. Essary owes $170,891 in child support.
Essary was a resident of Missouri in 1996. On Feb. 9, 1996, the Jackson County Circuit Court ordered him to pay $1,500 in monthly child support payments for his son, who currently resides with his mother in Utah.
Essary’s last documented entry into the United States and exit thereafter was on Sept. 12, 2007, to attend his daughter’s wedding in Illinois. Essary did not fly directly into the United States for the wedding. Instead, Essary flew from Thailand or the Philippines to Canada. Border crossing records confirm Essary then walked across the border from Canada into the United States at Blaine, Wash. He returned to Thailand in the same manner – by walking across the border at Canada and flying back to Thailand.
Essary was arrested at LAX airport when he returned to the United States on Feb. 22, 2012.
This case was being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Department of Health and Human Services, Office of Inspector General.
Project Save Our Children
Project Save Our Children is a multiagency law enforcement initiative that investigates and prosecutes the most egregious child support cases. Its members include investigative analysts from the Department of Health and Human Services, Office of Inspector General, the Administration for Children and Families (ACF) Office of Child Support Enforcement (OCSE), the U.S. Marshals Service, U.S. Attorneys' offices, and the Department of Justice, along with child support agencies across the United States. These entities identify, investigate, and prosecute noncustodial parents who knowingly fail to pay support obligations and meet the criteria for federal prosecution under the Deadbeat Parents Punishment Act. More information about federal child support enforcement is available at http://oig.hhs.gov/fraud/child-support-enforcement/Two KC Men Indicted for Robbing Raytown BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were indicted by a federal grand jury today for robbing First Federal Bank in Raytown, Mo.
Robert T. Morris, 31, and Anthony Beeks, 52, both of Kansas City, were charged in an indictment returned by a federal grand jury in Kansas City. Today’s indictment replaces a federal criminal complaint that was filed against Morris on May 22, 2014, and adds Beeks as a co-defendant.
Today’s indictment alleges that Morris and Beeks, aiding and abetting each other, stole $2,025 from First Federal Bank, 9330 E. Gregory, Raytown, on April 24, 2014.
According to an affidavit filed in support of the original criminal complaint, Morris entered the bank, approached the teller counter and provided the teller with a demand note, which was similar in verbiage to the following, “YOU KNOW WHAT THIS IS, HURRY UP, PUT THE MONEY IN THE BAG, NO FUNNY BUSINESS, HURRY UP.” The teller did not have access to any money, but walked over to another teller and showed her the demand note. The second teller then provided Morris with $2,025, the indictment says. Morris allegedly put the stolen money in a manila envelope and fled the bank. The demand note was left behind.
On May 13, 2014, a witness told law enforcement officers that he recognized Morris from bank surveillance photos that were posted on a media Web site. A few minutes, Kansas City police officers located Morris and Beeks, who were driving through the Westport area, and began surveillance.
On May 22, 2014, a federal search warrant was executed on the vehicle Beeks had been driving, which was at his residence. Morris was arrested the same day. Beeks was arrested today.
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 Leena V. Ramana. It was investigated by the FBI and the Kansas City, Mo., Police Department.Lee's Summit Man Sentenced for Cyberstalking, Possessing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was sentenced in federal court today for cyberstalking one victim and possessing child pornography images of another victim.
August W. Jentsch, 25, of Lee’s Summit, was sentenced by U.S. District Judge Gary A. Fenner to five years in federal prison without parole.
On Dec. 30, 2013, Jentsch pleaded guilty to cyberstalking and possessing child pornography.
Jentsch’s first victim notified the police department at the University of Minnesota (where she was attending school) that Jentsch had broken into her e-mail account and obtained nude images of her that were taken when she was 16 years old. The victim had briefly dated Jentsch in December 2007. The victim stated the 20-day relationship was not romantic and never physically intimate.
Jentsch stalked the victim from Jan. 2, 2008, to Aug. 29, 2011, by showing up at her work and residence, texting and e-mailing her, and leaving gifts for her. Beginning in September 2011, Jentsch set up fictitious Facebook profiles of the victim and posted the nude photos and video he had obtained from her e-mail account. This happened four or five times and each time the victim contacted Facebook to have the accounts taken down. Jentsch hacked into the victim’s gmail, Yahoo! E-mail, and Facebook accounts and assumed control of the accounts by changing the passwords. He sent random e-mails with the nude photos of the victim to people in her e-mail contacts. Jentsch also used the victim’s nude images and identity to set up another social media account to invite others to get in touch with the victim through Facebook for sexual activity.
A restraining order was served on Jentsch on Oct. 13, 2011. When a state search warrant was executed at Jentsch’s residence, officers found the images and video of the victim on an SD card that was in his computer. Investigators also discovered a video of child pornography on Jentsch’s computer that involved a second victim. The video portrayed the second victim, who was 15 years old, engaged in sexual activity with Jentsch.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the University of Minnesota Police Department and the Lee’s Summit, Mo., Police Department.
Director of Domestic Violence Shelter Pleads Guilty to Stealing FundsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the director of a shelter for victims of domestic violence in Marshall, Mo., pleaded guilty in federal court today to embezzling from the shelter and to making false statements on federal grant requests.
Deborah L. Wallace, 50, of Marshall, waived her right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to a federal information that charges her with one count of stealing government property and one count of making false claims for reimbursement under a federal grant.
Wallace was the executive director of the Lighthouse Shelter, Inc. By pleading guilty today, Wallace admitted that she embezzled money from Lighthouse, including money obtained from grants funded by the U.S. Department of Justice. Over a five-year period from 2008 through 2013, Wallace used Lighthouse credit cards to pay personal expenses. Wallace also made unauthorized payments on personal credit cards and her personal cell phone from the Lighthouse bank account.
In her position as executive director, Wallace certified that the grant applications submitted to the Missouri Department of Public Safety for federal grants – the Victims of Crime Act and the State Services for Victims Fund – were true and accurate statements in support of the grant applications. Wallace also certified that the monthly invoices made in support of disbursement of the grant monies were true and accurate. Wallace admitted today that she submitted fraudulent monthly invoices. For example, she falsely claimed that employees who actually performed other duties were working in positions funded under the grants.
The government and Wallace do not agree on the amount of the loss from the fraud scheme. If they are unable to agree to a loss figure by the time of Wallace’s sentencing hearing, the court will decide the matter by a preponderance of the evidence. Under the terms of today’s plea agreement, Wallace must pay restitution to Lighthouse for the total amount of the loss. Wallace also must pay the government a money judgment representing the amount of Lighthouse funds she obtained by fraud or for her own personal benefit as a result of her criminal violation.
Under federal statutes, Wallace is subject to a sentence of up to 15 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 Paul S. Becker. It was investigated by the FBI and the U.S. Department of Justice Office of the Inspector General.Treasurer for Fire District, Road District Sentenced for Embezzling $1.5 MillionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former treasurer of both the Wellington Napoleon Fire Protection District and Special Road District was sentenced in federal court today for a fraud scheme in which he embezzled more than $1.5 million from the two districts.
Leland Ray Kolkmeyer, 59, of Wellington, Mo., was sentenced by U.S. District Judge Gary A. Fenner to three years in federal prison without parole. Kolkmeyer must surrender to the Bureau of Prisons to begin serving his sentenced on Aug. 7, 2014. The court also ordered Kolkmeyer, who has already paid $1 million in restitution, to pay an additional $530,159 in restitution, which represents the total amount he embezzled from the two districts.
On Nov. 20, 2013, Kolkmeyer pleaded guilty to two counts of mail fraud. Kolkmeyer was elected treasurer of both the road district and the fire district in 1998. He resigned from both positions in February 2013. The offices of both the fire district and the road district are located in Wellington.
Kolkmeyer embezzled $939,485 from the Wellington Napoleon Special Road District and $590,674 the Wellington Napoleon Fire Protection District, for a total theft of $1,530,159.
According to court documents, Kolkmeyer told investigators that he used the money he had stolen by doing $50,000-$60,000 in remodeling of his house. Kolkmeyer also stated he purchased various vehicles over the course of the time that he would not have been able to purchase without the money. Kolkmeyer also stated he helped his daughter remodel her home for about $25,000-$30,000. Kolkmeyer stated he helped with his son's wedding expenses and estimated that each wedding for his children cost $40,000-$50,000.
Kolkmeyer also told investigators that he did not declare any of the stolen income to the IRS.
Road District Fraud Scheme
Kolkmeyer admitted that he stole approximately $900,000 from the road district from August 1998 to Feb. 12, 2013. Kolkmeyer made checks payable from the road district’s bank account to himself and others for his own benefit without the knowledge, authorization or consent of the road district. The government alleges that Kolkmeyer fraudulently transferred $939,485 from the road district’s bank account to his own bank account or to pay bills on his behalf.
Kolkmeyer, in his position as treasurer of the road district, made false statements and material omissions to the Special Road District Board concerning the checks that were made payable to himself and to others on his behalf.
Fire District Fraud Scheme
Kolkmeyer also admitted that he stole more than $500,000 from the fire district from August 1998 to Feb. 17, 2013. The government alleges that Kolkmeyer fraudulently transferred $590,674 from the fire district bank accounts to his own bank account or to pay bills on his behalf.
Kolkmeyer, in his position as treasurer of the fire district, made false statements and material omissions to the Fire Protection District Board concerning the checks that were made payable to himself and to others on his behalf.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.Connecticut Man Sentenced for False Tax ClaimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New Fairfield, Conn., man was sentenced in federal court today for making false claims for tax refunds.
Nkosi Gray, 41, of New Fairfield, was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole. The court also ordered Gray to pay $278,874 in restitution. Gray was taken into federal custody at the conclusion of today’s hearing.
On Jan. 13, 2014, Gray was found guilty at trial of one count of filing false claims for a tax refund.
Gray filed fraudulent tax returns that falsely claimed refunds due to over-withholding of taxes. Gray was convicted of filing a false tax return for which he received a $278,874 refund. According to court documents, Gray filed 11 fraudulent tax returns, seeking over $1.5 million in fraudulent refunds, even after receiving multiple notices by the IRS that the claims were fraudulent.
These claims utilized fictitious 1099-OID tax forms (which are legitimately used to pay taxes on income received from the interest on bond investments). In actuality, Gray had not received interest income from the banks and lenders listed on their Forms 1099, nor had any money been over-withheld.
Co-defendant Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo., pleaded guilty on Nov. 7, 2013, to being the leader of a conspiracy to defraud the government that utilized this fraudulent practice. He was sentenced to 13 years in federal prison without parole. Conspirators filed 284 fraudulent returns that claimed a total of $96 million dollars in refunds. The IRS mistakenly paid out $3.5 million on these fraudulent claims. Conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
After he received a refund of $278,874 on Oct. 17, 2008, Gray paid a $15,000 fee to Poynter a few days later. After the refund was deposited into his account, Gray made 56 withdrawals over the next two months. By withdrawing the cash in increments of less than $10,000, Gray (a former bank employee) avoided the requirement for his bank to report those transactions to the government.
According to court documents, Gray refused to pay the IRS back despite aggressive collection efforts. He continued to live well and used trusts and multiple accounts to hide the money. He sent frivolous correspondence to IRS in an attempt to confuse and frustrate the collection as he continued filing fraudulent tax returns.
Poynter is among 13 defendants who have pleaded guilty. Co-defendant Kimberly Johnson, 43, of Chickamauga, Ga., was also convicted at trial and sentenced to four years in federal prison without parole. The court also ordered Johnson to pay $306,496 in restitution.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received interest and dividend income and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ purported interest and dividend income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – such income. No financial institution had issued any 1099-OID forms. Instead, the income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of interest and dividends.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).Jury Convicts Guatemalan National of Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Guatemalan national has been convicted by a federal trial jury of his role in a conspiracy to distribute cocaine and methamphetamine in the Kansas City, Mo., area.
Ismael Aldana Moralez, 41, a citizen of Guatemala residing in Kansas City, was found guilty on Wednesday, June 18, 2014, of participating in a conspiracy to distribute more than 500 grams of cocaine from January 2008 to Oct. 31, 2012.
In addition to the drug-trafficking conspiracy, the jury also convicted Moralez of 11 counts of distributing cocaine, one count of being an illegal alien in possession of ammunition, one count of illegally entering the United States and one count of using a telephone to facilitate the distribution of cocaine.
Five co-defendants have pleaded guilty. Jose Octavio Franco Ortega, 39, and Alfredo Jesus Chavez Portillo, also known as “Martin,” 47, both citizens of Mexico; Agustin AJ Ixcoy, also known as “Chino,” 40, a citizen of Guatemala residing in Independence, Mo.; and Ronny Mazariegos, 41, a citizen of El Salvador, have pleaded guilty to their roles in the drug-trafficking conspiracy. Ixcoy and Mazariegos also pleaded guilty to money laundering and must forfeit $25,000 to the government. Emilio Estrada Rodriguez, 60, a citizen of Mexico residing in Sedalia, Mo., was sentenced to 10 years in federal prison without parole after pleading guilty to possessing methamphetamine with the intent to distribute.
Evidence introduced during the trial indicated that investigators utilized undercover officers and cooperating sources to conduct controlled drug buys, as well as various means of surveillance. During the trial, the jury heard testimony that Moralez supplied ounce quantities of cocaine to conspirators Mazariegos and Ixcoy, who in turn distributed to others in the Kansas City metropolitan area.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, June 16, 2014.
Under federal statutes, Moralez 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes, IV, and Brent Venneman. It was investigated by the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Two Mexican Nationals Sentenced for Trafficking Cocaine, Meth in Cole, Moniteau CountiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Mexican nationals were sentenced in federal court today for their roles in conspiracies to distribute large amounts of cocaine and methamphetamine in Cole and Moniteau Counties, Mo.
Froylan Pedroza-Guadarrama, 31, and Jesus Ricardo-Amaya, 29, both citizens of Mexico, were sentenced in separate hearings before U.S. District Judge Fernando J. Gaitan. Pedroza-Guadarrama was sentenced to nine years in federal prison without parole. Ricardo-Amaya was sentenced to two years in federal prison without parole.
Co-defendants Eloy Castaneda-Gonzalez, 34, Beroldo Almazan, 34, and Adolfo Almazan-Hernandez, 43, all of whom are Mexican nationals residing in California, Mo., have also been sentenced. Castaneda-Gonzalez was sentenced to 15 years in federal prison without parole. Almazan was sentenced to 10 years in federal prison without parole. The court also ordered them to forfeit to the government $52,928, which was derived from the offense. Almazan-Hernandez was sentenced to 18 months in federal prison without parole.
Ricardo-Amaya, Castaneda-Gonzalez, Almazan and Almazan-Hernandez each pleaded guilty to their roles in a conspiracy to distribute methamphetamine and a conspiracy to distribute cocaine. Pedroza-Guadarrama pleaded guilty to his role in the conspiracy to distribute cocaine.
According to court documents, a DEA agent learned that Castaneda-Gonzalez wanted to purchase seven kilograms of cocaine from two cooperating sources. The DEA’s cooperating sources agreed to travel to Missouri and deliver the cocaine for $24,000 per kilogram. On June 21, 2012, the cooperating sources directed Castaneda-Gonzalez to meet them at a Jefferson City, Mo., motel.
Castaneda-Gonzalez was accompanied by Almazan and Almazan-Hernandez when he arrived at the motel room. Castaneda-Gonzalez explained that he didn’t have all of the money to purchase seven kilograms of cocaine, but offered to provide the cooperating sources with five pounds of methamphetamine, along with a portion of the money, in exchange for the cocaine. They accepted the offer, and Castaneda-Gonzalez, Almazan and Hernandez left the motel room, stating they would return shortly with the methamphetamine and money.
Approximately one and a half hours later, Castaneda-Gonzalez, Almazan and Almazan-Hernandez returned to the motel room. Castaneda-Gonzalez gave the cooperating sources a package that contained nearly one pound of crystal methamphetamine. A short time later, Almazan-Hernandez left the room momentarily and returned with a bag containing the remaining four pounds of crystal methamphetamine. While inside the motel room, Almazan made several telephone calls which sounded like he was arranging for Almazan-Hernandez to meet with one or more of Almazan’s customers at a nearby McDonald’s. Almazan-Hernandez returned approximately 30 minutes later with $20,000 in cash. The cooperating sources then provided Castaneda-Gonzalez with one kilogram of cocaine to inspect, and told him they were going to leave the room to obtain the remaining six kilograms.
Castaneda-Gonzalez became extremely nervous and fled from the room, followed by Almazan, but both were apprehended after a brief foot chase. Almazan-Hernandez was also taken into custody as he walked out of the motel room.
Based on Almazan’s telephone calls, investigators believed that additional conspirators were at a nearby McDonald’s. Investigators located Pedroza-Guadarrama, Ricardo-Amaya and co-defendant Victor Hugo De La Roza-Garza, 32, a Mexican national, who were arrested in separate car stops as they left the McDonald’s. Officers discovered $15,000 inside a bag on the back seat of De La Roza’s vehicle and another $14,000 hidden in a false compartment of a toolbox.
De La Roza-Garza pleaded guilty to his role in the conspiracy to distribute cocaine and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force and the Jefferson City, Mo., Police Department.Lon O. Hocker AwardRead the Press Release
KANSAS CITY, Mo. – Daniel M. Nelson, Assistant U.S. Attorney for the Western District of Missouri, has been named a recipient of the prestigious Lon O. Hocker Award in recognition of his outstanding trial work in federal court.
“Dan Nelson earned this award in the trenches,” said Tammy Dickinson, United States Attorney for the Western District of Missouri. “Dan successfully prosecuted the criminals who stole millions of dollars from the public in the largest tax case ever prosecuted in Missouri. He successfully prosecuted the criminals who stole from more than 12,000 investors across the country. And he diligently serves the United States by upholding the cause of justice at the federal courthouse every day.
“I’m pleased that Dan is receiving the public recognition that he deserves,” Dickinson added. “He is respected in the legal community as a tough, energetic litigator who comes to the courtroom armed with meticulous research and a keen intellect.”
The Missouri Bar Foundation describes the Lon O. Hocker Award: “This award is given to three trial lawyers who are under the age of 40 selected from different regions of the state: St. Louis, Kansas City and all other counties. The recipients are chosen based on their demonstrated balance between zealousness and honor, strength and courtesy, confidence and respect, as well as other professional qualities. Recipients must possess a quick wit in the courtroom that is supported by meticulous preparation in the pursuit of truth.”
Nelson, who currently works in the Fraud and Public Corruption Unit, prosecutes complex white collar criminal cases, such as securities fraud and other financial crimes. Nelson has also worked in the Computer Crimes and Child Exploitation Unit and served two years in management leadership as Executive Assistant U.S. Attorney.
The award, announced this week, will be presented at The Missouri Bar’s annual meeting on Sept. 10, 2014, in Kansas City. Nominations were taken from throughout the state by previous Lon O. Hocker Award winners, the Missouri Bar president, leaders, or members-at-large. The review committee was comprised of three or more federal or state judges.
Over the past five years, Nelson has prosecuted eight jury trials against 15 defendants. Those cases include:
- A $96 million nationwide false tax refund conspiracy that was the largest tax case ever prosecuted in Missouri. The 16 conspirators recruited 127 clients and filed 237 false tax returns, claiming $96 million in refunds. They actually received and split over $3.5 million. Thirteen defendants pleaded guilty, two were convicted after a 6-day jury trial and one remains a fugitive.
- The $10.2 million Petro America investment scam had more victims than any case previously prosecuted in the Western District of Missouri, with over 12,000 investors across the United States, Canada and overseas. The charges included conspiracy, wire fraud, securities fraud, money laundering and mail fraud. The five defendants who went to trial were convicted on all counts after a five-week-long jury trial. The remaining nine defendants all pleaded guilty.
- The mayor of Stover, Mo., was convicted of misprision of a felony and lying to agents from the Missouri Department of Natural Resources and the Environmental Protection Agency about coliform bacteria contamination in the city’s public water supply. The mayor and city manager manually added chlorine to city water samples they sent in for mandatory safety testing in an attempt to avoid being ordered to chlorinate the system. The mayor was convicted on all counts after a three-day jury trial and the city manager pleaded guilty prior to trial.
- Four sophisticated armed bank robberies utilized diversions and switch cars in Kansas City, Gladstone, and Independence. Two co-defendants pleaded guilty before trial. The remaining defendant was convicted after a week-long jury trial.
- A 15-year-long Social Security fraud scam by a mortgage company president who received disability benefits for 15 years despite starting and running his own company. A “sovereign citizen” who represented himself at trial, he was found guilty at the conclusion of a four-day jury trial.
- A Grain Valley couple obtained and spent nearly $900,000 in fraudulent federal tax refunds. Defendants identified themselves as “sovereign citizens,” and they represented themselves at trial. Charges included conspiracy, false claims, money laundering, wire fraud, and presenting fictitious obligations. Both defendants were convicted on all counts.
- Bank robbery of the Bank of Kansas City on Independence Avenue. Along with his hat and coat, this pro se defendant accidentally threw away the stolen money after fleeing the bank. Because the defendant was in shackles, all counsel were required to remain seated at their counsel tables for the entire jury trial. He was convicted on all counts.
Nelson grew up in St. Joseph, Mo., where he graduated from Central High School in 1994. He is a 1999 graduate of the University of Missouri School of Journalism and a 2002 graduate of the University of Virginia School of Law. Prior to joining the U.S. Attorney’s Office in 2004, he was an attorney at a top national law firm.
Nelson is also a member of the Kansas City Metropolitan Bar Association (Federal Court Advocates Section) and the Western District of Missouri Historical Society. He serves on the boards of Impact KC and the Child Protection Center. He has lectured on trial advocacy, cyber law, ethics and securities law at the University of Missouri School of Journalism, the University of Kansas School of Law and the University of Missouri-Kansas City School of Law.
Mary B. Hocker established the Lon O. Hocker Awards in 1954 in memory of her late husband, an outstanding trial lawyer who practiced in St. Louis for more than 50 years. The Missouri Bar Foundation makes the awards annually to young lawyers who have demonstrated unusual proficiency in the art of trial advocacy. The award is presented to three lawyers 40 years of age or younger – one each from the St. Louis, Kansas City and outstate Missouri areas – in recognition of outstanding trial work.Three Warrensburg Residents Among Six Indicted for Conspiracy to Distribute MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine.
Phuoc Hong, also known as Tony Hong, 31, Garrett D. Statler, 20, and Alyce M. Maher, 26, all of Warrensburg, Mo.; Tony D. Meyer, 41, of Sedalia, Mo.; Dylan K. Avery, 18, of Clinton, Mo.; and Arturo-Lorenzo Roldan, 33, of Independence, Mo.; were charged in a 22-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, June 11, 2014. That indictment was unsealed and made public today upon Hong’s arrest and initial court appearance.
The federal indictment alleges that each of the six defendants participated in a conspiracy to distribute methamphetamine from December 2013 to May 2014. According to the indictment, Hong traveled to Independence to obtain methamphetamine from Roldan, then sold the methamphetamine to customers at various locations (including his own residence in Warrensburg and parking lots of various businesses in the Kansas City, Mo., area). Hong also allegedly sold methamphetamine to Statler, Maher, Meyer and Avery, who allegedly distributed methamphetamine to their own customers.
In addition to the conspiracy, Hong is charged with 11 counts of distributing methamphetamine, four counts of distributing cocaine, one count of possessing methamphetamine with the intent to distribute and one count of possessing cocaine with the intent to distribute.
Hong is also charged with illegally possessing a firearm and a pipe bomb. The indictment alleges that Hong, an unlawful user of methamphetamine, was in possession of a Harrington and Richardson .22-caliber revolver on March 24, 2014. The indictment also alleges that Hong was in possession of a pipe bomb on Feb. 4, 2014.
In addition to the conspiracy, Meyer is charged with one count of distributing methamphetamine and one count of being a felon in possession of a firearm. The indictment alleges that Meyer, having been convicted of a felony, was in possession of a Hi-Point 9mm pistol on Jan. 18, 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 Bruce E. Clark. It was investigated by the Warrensburg, Mo., Police Department, the Johnson County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Knob Noster, Mo., Police Department, the Sedalia, Mo., Police Department, the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Prisoner of Assaulting CounselorRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced an inmate at the U.S. Medical Center for Federal Prisoners in Springfield was convicted in federal court today of 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 found guilty of punching a counselor in the face and throwing a computer printer at the counselor’s face.
Evidence introduced during the trial indicated that 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.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for two hours before returning the guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Wednesday, June 11, 2014.
Under federal statutes, Begay 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. Attorneys Abram McGull, II and Patrick Carney. It was investigated by the FBI.
Independence Man Pleads Guilty to $1.2 Million Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to leading a $1.2 million arson and insurance fraud conspiracy.
Joshua Stamps, 27, of Independence, Mo., pleaded guilty before U.S. District Judge Dean Whipple to the charges contained in a Sept. 25, 2013, federal indictment. In addition to the conspiracy, Stamps pleaded guilty to using fire to commit a federal crime (mail fraud).
Stamps and his co-conspirators bought, over-insured and burned five houses, all in Kansas City, Mo. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was $1,196,840.
Beginning in July 2007, Stamps bought houses costing from $6,500 to $15,000. Stamps used co-conspirators as straw owners for three of the houses, while other co-conspirators helped commit the arsons and/or acted as tenants so the properties could be classified as rentals.
In the conspiracy that lasted until 2013, Stamps and his co-conspirators insured the houses for much more than the purchase price, in amounts from $88,000 to $307,000. Stamps and his co-conspirators made false statements on the insurance applications, such as that the houses were rented and/or occupied, that there were valuable contents in the houses, and that the houses had been renovated.
Stamps and his co-conspirators set fire to the houses. The listed owner of the house that burned would then claim a total loss with the applicable insurance company and would falsely claim they had no knowledge of, or involvement in, the fire.
Under the terms of today’s plea agreement, Stamps must pay a money judgment of $434,938. Stamps is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to 25 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 Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department.Joplin 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 that a Joplin, Mo., man was indicted by a federal grand jury today on charges related to producing and distributing child pornography.
James Hajny, 49, of Joplin, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Hajny used a minor victim, identified as “Jane Doe #1,” to produce child pornography in May 2014. Hajny is also charged with distributing pornographic images of Jane Doe #1 over the Internet between Dec. 12, 2013, and May 12, 2014. The indictment also charges Hajny with possessing child pornography on May 19, 2014.
The indictment contains a forfeiture allegation, which would require Hajny to forfeit to the government any property used to commit the alleged offenses, including a laptop computer, two tablet computers two cell phones, an iPod and a digital camera.
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 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."Independence Man Indicted for 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 an Independence, Mo., man was indicted by a federal grand jury today for using a minor victim to produce child pornography.
Morgan Littleton, 32, of Independence, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Littleton used a minor, identified as Jane Doe, to produce child pornography on four separate occasions between Jan. 18 and March 25, 2013.
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 Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Five Plead Guilty to Large-scale Meth Conspiracy in Southwest MissouriRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five defendants pleaded guilty in federal court this week to charges related to a large-scale methamphetamine conspiracy.
Jerry Dean Wright, Jr., 38, and his wife, Shannon K. Wright, 36, both of Ozark, Mo., Perry L. Adams, 39, of Springfield, Mo., and Joseph A. Dreckmeier,32, of Gilbert, Ariz., pleaded guilty today in separate appearances before U.S. Magistrate Judge James C. England to the charges contained in a May 6, 2014, federal indictment. Co-defendant Salvador Campos, 32, of Los Angeles, Calif., pleaded guilty on Tuesday, June 10, 2014.
By pleading guilty, Jerry Wright, Adams, Dreckmeier and Campos each admitted that he participated in a conspiracy to distribute methamphetamine between Sept. 4, 2012, and June 5, 2013. They also each pleaded guilty to money laundering. Shannon Wright pleaded guilty to money laundering.
Jerry Wright was involved with a group in the southwest Missouri area that distributed large amounts of methamphetamine. He arranged for multi-pound shipments of methamphetamine to be shipped from Arizona and California to Missouri. Jerry Wright and other members of the conspiracy received the methamphetamine and distributed it in southwest Missouri.
Jerry and Shannon Wright, Adams, Dreckmeier and Campos are among nine co-defendants who have pleaded guilty in this case.
Drug-Trafficking Conspiracy
On April 11, 2013, officers with the Texas Department of Public Safety stopped a vehicle that was carrying approximately nine pounds of methamphetamine. A search of the car revealed that it was registered to Shannon Wright and the insurance was in the name of Jerry Wright. The methamphetamine was intended for delivery to Wright.
In June 2013, an investigation in the state of California led to the stop of several individuals in Missouri. Co-defendant Myrna Aguirre, 42, of Los Angeles, drove a Mercedes to Springfield containing approximately 10 pounds of pure methamphetamine. After delivering it to Springfield, Missouri, Campos and other co-defendants took possession of the Mercedes. They were attempting to deliver it to Jerry Wright, when they were stopped by law enforcement and the methamphetamine was found hidden in the vehicle. Aguirre has also pleaded guilty to her role in the conspiracy.
In October 2012, co-defendants Robert Joseph Cantrell, 42, of Seymour, Mo., and Brandon Hinkley, 35, of Republic, Mo., drove to Arizona and met with Dreckmeier. Dreckmeier arranged for approximately 25 pounds of methamphetamine to be loaded into a rental vehicle, which Hinkley then drove back to Missouri and delivered to Jerry Wright. Cantrell and Hinkley have pleaded guilty to their roles in the conspiracy.
In addition to the 25-pound methamphetamine shipment arranged in October 2012, Jerry Wright arranged with Dreckmeier for at least three other multi-pound shipments of methamphetamine to be sent to Missouri in a VW Beetle that was equipped with a hidden compartment. These shipments were also being sent to Jerry Wright for distribution by him and other members of the conspiracy in southwest Missouri.
Shannon Wright and other members of the conspiracy distributed the methamphetamine in southwest Missouri. Shannon Wright also collected money for Jerry Wright, which had been paid for the distribution of methamphetamine.
During the conspiracy, Adams received small amounts of methamphetamine from Jerry and Shannon Wright and then sold it to others. On April 1, 2013, Adams was stopped by police and found to be in possession of 1/8 ounce of methamphetamine which he had received from Jerry Wright. Adams was also present when Jerry Wright removed a large amount of methamphetamine from a Chevrolet Avalanche in the spring of 2013, which is estimated to be between two to four pounds.
Money Laundering
On March 7, 2013, Adams and Jerry Wright brought $29,600 in cash to Springfield Imports car dealership in Springfield for the purchase of a 2012 Chevrolet Camaro. The money used to purchase the Camaro was derived from the distribution of methamphetamine and the transaction was designed to conceal that fact.
On April 7, 2013, Jerry Wright brought approximately $47,848 in cash to Midwest Auto Group Motors LLC for the purchase of a 2010 Dodge Challenger and a 2010 Chevrolet Camaro. The money used to purchase the Challenger and the Camaro was derived from Jerry Wrights’ distribution of methamphetamine.
On April 8, 2013, Dreckmeier brought $35,000 in cash to Reliable Chevrolet in Springfield for the purchase of a 2013 Chevrolet Camaro. Shannon Wright brought another $8,000 the following day. The transaction was conducted on behalf of Jerry Wright. The money used to purchase the Camaro was derived from the Wrights’ and Dreckmeier’s distribution of methamphetamine.
Forfeiture
Under the terms of today’s plea agreements, Jerry and Shannon Wright must forfeit to the government a 1998 Jaguar, two 2003 Harley Davidson motorcycles, a 2004 Chevrolet SSR, a 2005 Pontiac GTO, a 2006 Chrysler 300C, a 2007 Chevrolet Avalanche, a 2008 Chevrolet Avalanche, two 2010 Chevrolet Camaros, a 2010 Dodge Challenger and a 2012 Chevrolet Camaro, all of which were obtained from the proceeds of the methamphetamine trafficking.
Sentencing
Under federal statutes, Jerry Wright is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $20 million.
Shannon Wright is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000.
Adams is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10.5 million.
Dreckmeier is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10,250,000.
Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Springfield, Mo., Police Department, the U.S. Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Webster County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.Three Kansans Indicted for Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Kan., residents were indicted by a federal grand jury today for the armed robbery of an Excelsior Springs, Mo., bank.
Virginia Lynn Spencer, 28, her brother, Charles Ralph Spencer, 24, and Steven Dale Robinson, 22, all of Kansas City, Kan., were charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Virginia Spencer and Steven Robinson on May 27, 2014, and a federal criminal complaint that was filed against Charles Spencer on May 29, 2014. All three defendants remain detained in federal custody.
Virginia and Charles Spencer and Robinson are each charged in one count of aiding and abetting each other to steal $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on May 23, 2014. Virginia and Charles Spencer are also charged together with one count of aiding and abetting each other to brandish a firearm during the robbery.
According to an affidavit filed in support of the original federal criminal complaint, Virginia and Charles Spencer entered the bank at about 5:30 p.m. Charles Spencer allegedly stood in the lobby and pointed a Rossi .32-caliber revolver in the air with his finger on the trigger. They ordered bank employees to sit on the floor, the affidavit says, then Virginia Spencer dove on top of the middle lobby teller counter and began opening the tellers drawers in search of money. Spencer pulled herself over the counter and went behind the teller counter, the affidavit says, before jumping back over the counter while holding a bag.
Both robbers ran from the bank, according to the affidavit, with Virginia Spencer saying, “Have a nice day” on her way out.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. She saw Robinson sitting in the driver’s seat of a Grand Marquis that was backed in near the bank’s front doors at an angle, the affidavit says. The two robbers ran out of the bank’s front doors and got into the vehicle. The vehicle quickly left the Bank Midwest parking lot, narrowly missing the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. A pursuit followed, and the robbers’ vehicle crashed near Kings Highway and Dam Road in Liberty, Mo. Virginia Spencer and Robinson were arrested at the scene and Charles Spencer was hospitalized as a result of the crash.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle.
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 Justin G. Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.Four Springfield-area Men Indicted for Stealing Guns from Pawn ShopRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Springfield, Mo., area men were indicted by a federal grand jury today for stealing 21 handguns from an Ozark, Mo., pawn shop.
Daryl Bradley Maples, 27, Corey Lynn Downard, 32, and Matthew James Oakley, 23, all of Springfield, Mo., and Michael Cameron Heston, 25, of Republic, Mo., were charged in a four-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Maples, Downard, Heston and Oakley aided and abetted each other to illegally enter Sutton Gun and Pawn, a licensed firearms dealer located at 3994 N. 20th St., Ozark, Mo., and steal 21 handguns on Dec. 21, 2012.
Maples is also charged with being a felon in possession of firearms and ammunition. The indictment alleges that Maples, having been convicted of a felony crime, was in possession of an F.N. 9 mm pistol, a Colt Canada .38-caliber revolver and assorted ammunition on Dec. 26, 2012. Maples is also charged with selling two stolen firearms – a Rossi .38-caliber revolver and a Smith & Wesson .357-caliber revolver – on Dec. 21, 2012.
Downard is also charged with being a felon in possession of firearms. The indictment alleges that Downard, having been convicted of a felony crime, was in possession of two Beretta .40-caliber pistols on Dec. 21, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or 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. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozark, Mo., Police Department and the Springfield, Mo., Police Department.Owner of Ozark Businesses Sentenced for Failure to Pay Employment TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of two Ozark, Mo., businesses has been sentenced in federal court for willfully failing to pay over hundreds of thousands of dollars in employment taxes.
Kerry W. May, 65, of Ozark, was sentenced by U.S. District Judge Beth Phillips on May 29, 2014, to one year and one day in federal prison without parole. The court also ordered May to pay $94,485 in restitution (on the unpaid interest), in addition to the $373,200 in restitution that May has already paid.
On Oct. 3, 2012, May pleaded guilty to two felony counts of failure to collect, or to truthfully account for and pay over employment taxes for his two corporations, Spring Creek Antiques, Inc. (with approximately 25 employees) and Riverview Antique Center, Inc. (with approximately 10 employees). As corporate president of both businesses, May failed to account for and pay over the employees’ trust fund portion as well as the corporations’ portion of the employment taxes to the Internal Revenue Service.
May admitted that, from 2003 through 2009, he engaged in a deliberate scheme to avoid reporting or paying the trust fund taxes on approximately $373,200 he withheld from his employees’ paychecks. According to court documents, May withheld taxes from his employees’ pay, but simply pocketed the funds without reporting the withholding to the IRS or making the required trust fund payments.
May personally maintained the books and records for both businesses, which operated as S-corporations. May, who has a bachelor’s degree in accounting, has been a senior tax advisor with H&R Block and previously had an H&R Block franchise. He also served as an enrolled agent, representing clients in their dealings with the IRS.
To perpetrate his scheme, according to court documents, May calculated and issued bi-weekly paychecks to employees, including himself and his wife. The paychecks included detailed withholding information. Therefore, May was clearly aware on an ongoing basis how much employment tax was due.
This case was prosecuted by Assistant U.S. Attorney Steven Mohlhenrich. It was investigated by IRS-Criminal Investigation.Georgia Woman Sentenced for False Tax ClaimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chickamauga, Ga., woman was sentenced in federal court today for making false claims for tax refunds.
Kimberly Johnson, 43, of Chickamauga, Ga., was sentenced by U.S. District Judge Brian C. Wimes to four years in federal prison without parole. The court also ordered Johnson to pay $306,496 in restitution.
On Jan. 13, 2014, Johnson was found guilty at trial of one count of filing false claims for a tax refund. Johnson filed fraudulent tax returns that falsely claimed refunds due to over-withholding of taxes. This claim utilized fictitious 1099-OID tax forms (which are legitimately used to pay taxes on income received from the interest on bond investments).
Johnson was a branch manager for co-defendant Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo. Poynter pleaded guilty on Nov. 7, 2013, to being the leader of a conspiracy to defraud the government that utilized this fraudulent practice. He was sentenced to 13 years in federal prison without parole. Conspirators filed 284 fraudulent returns that claimed a total of $96 million dollars in refunds. The IRS mistakenly paid out $3.5 million on these fraudulent claims. Conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
According to court documents, Johnson filed tax returns and amended returns for 37 people. She admitted that this was her sole livelihood at the time, and she benefitted by making tens of thousands of dollars. Despite notice after notice that Poynter and his scheme were frauds, she continued to file tax returns. Many of her low-income clients were fined $10,000 by the IRS for following Johnson’s fraudulent advice. The government believes Johnson’s intended loss was $3,682,647, and her actual loss was $306,496.
Johnson was convicted of filing a claim for a $61,959 refund in April 2009 on behalf of Marian Fine-Kennedy, 36, of Eugene, Ore. In actuality, Fine-Kennedy had not received interest income from the banks and lenders listed on the Forms 1099, nor had any money been over-withheld. Fine-Kennedy has pleaded guilty in a separate but related case.
Poynter and Fine-Kennedy are among 13 defendants who have pleaded guilty. Co-defendant Nkosi Gray, 40, of New Fairfield, Conn., was also convicted at trial and awaits sentencing.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received interest and dividend income and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ purported interest and dividend income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – such income. No financial institution had issued any 1099-OID forms. Instead, the income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of interest and dividends.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).Business Pleads Guilty to $3 Million Scheme to Sell Foreign Versions of BotoxRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Alton, Ill., business owner and his company pleaded guilty in federal court today to distributing more than $3 million worth of foreign Botox and Juvederm in the United States.
Christopher Carstens, 49, of Alton, and his company, Orthopaedic Solutions, Inc., pleaded guilty before U.S. district Judge Howard F. Sachs to violations of the Federal Food, Drug and Cosmetic Act. Orthopaedic Solutions pleaded guilty to the felony charge of introducing a misbranded drug into interstate commerce. Carstens pleaded guilty to a misdemeanor charge.
Carstens and Orthopaedic Solutions pleaded guilty to introducing foreign Botox into interstate commerce (by shipping it across state lines via FedEx) in August 2009. The Botox was not approved by the FDA for distribution in the United States; rather, it was labeled for use in Great Britain. Other Botox was labeled for use in the United Arab Emirates, Bahrain, Kuwait, Lebanon, Oman and Palestine. The foreign Botox was misbranded in that its labeling failed to bear adequate directions for use, failed to bear adequate “black box” warnings and failed to bear the symbol “Rx only.”
Carstens admitted that approximately 5,879 units of foreign Botox, Juvederm 2, and Juvederm 3 were distributed by Orthopaedic Solutions to doctors or other health care professionals in the United States between 2008 and 2011, at a retail value of approximately $3,058,183. (Juvederm is a clear, biodegradable gel implant that is injected into the skin to correct wrinkles and folds.)
Undercover FDA agents purchased the foreign and mislabeled Botox and Juvederm from Orthopaedic Solutions from June 22, 2009, through Dec. 21, 2010.
Under the terms of today’s plea agreement, Orthopaedic Solutions must forfeit $374,476 to the government (with $80,000 due at the time of sentencing and $3,505 paid each month, until paid in full). Carstens must pay a $50,000 fine (with $10,000 due at the time of sentencing and $667 paid each month thereafter until paid in full). A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jane Pansing Brown and Lucinda S. Woolery. It was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigation.
Former KC Man Pleads Guilty to 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 former Kansas City, Mo., resident pleaded guilty in federal court today to charges related to producing child pornography.
Paul Leslie Kannarr, 59, formerly of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to all 10 counts of a May 21, 2013, federal indictment.
By pleading guilty today, Kannarr admitted that he used a minor, identified as “Jane Doe,” to produce child pornography on six separate occasions between Dec. 19, 1999 and Sept. 23, 2000.
Kannarr also pleaded guilty to two counts of posting a notice online that offers to display or distribute child pornography, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Under federal statutes, Kannarr is subject to a mandatory minimum sentence of 10 years in federal prison without parole on each of the six production counts and the two advertising counts, up to a sentence of 180 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department and the FBI Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Columbia Man Sentenced to 15 Years in Prison for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man was sentenced in federal court for illegally possessing a firearm that he used to threaten another person.
Robert Earl Foster, 50, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 3, 2014, to 15 years and eight months in federal prison without parole. Foster was sentenced as an armed career criminal due to his prior felony convictions for serious drug offenses and violent crimes.
On Feb. 5, 2013, Foster pleaded guilty to being a felon in possession of a firearm. Foster admitted that he was in possession of a loaded Mauser 6.35mm semi-automatic pistol.
Foster was arrested by Columbia, Mo., police officers who responded to a report on June 26, 2011, that he had threatened a woman with a gun. While searching for Foster, officers were told that a neighbor saw him running through her back yard. Foster was located but ignored officers’ commands to get on the ground and continued walking. Foster continued to ignore multiple commands to show his hands and get on the ground until an officer took him to the ground by force. The loaded pistol was found directly underneath Foster.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Foster has felony convictions for possession of a controlled substance, distribution of a controlled substance, unlawful use of a weapon, robbery and assault.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Business Owner Sentenced for Scheme to Steal $1.3 Million from State FundRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Missouri business owner was sentenced in federal court for a scheme to embezzle more than $1.3 million from the Missouri Petroleum Storage Tank Insurance Fund.
Robert L. Fine, II, 52, of Lenexa, Kan., was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 3, 2014, to two years and six months in federal prison without parole. The court also ordered Fine to pay a $50,000 fine in addition to $1,505,514 in restitution that Fine previously paid to the Petroleum Storage Tank Insurance Fund, which includes the total amount of the fraud and related costs.
On Nov. 12, 2013, Fine pleaded guilty to one count of mail fraud and one count of money laundering.
Fine was the owner and sole employee of FINEnvironmental, Inc., a Missouri corporation that he operated from an office in his residence. FINEnvironmental performed environmental services for property owners who used or operated a petroleum storage tank.
In 1989, the Missouri General Assembly created the Petroleum Storage Tank Insurance Fund (PSTIF) in response to federal legislation requiring owners and operators of underground storage tanks to have the financial resources available to pay for cleanup of spills or leaks from their tanks. The PSTIF was funded by a fee assessed to petroleum companies on each load of petroleum that is transported into Missouri and by annual fees charged to the owners and operators for insurance coverage.
Fine utilized subcontractors to perform his environmental services, and those subcontractors submitted invoices to Fine for the work they performed. From August 2002 to February 2012, Fine created false invoices purporting to be from one of his subcontractors and inflated the amount of the invoices. Fine mailed the fraudulent invoices to the PSTIF for payment and, over a nearly 10-year period, obtained $924,236 in excess payments from the PSTIF.
Fine also admitted that he obtained additional funds from the PSTIF by fraudulently submitting invoices for an additional groundwater monitoring trip when only one was made, totaling $326,978. The plea agreement cites an additional $66,243 in losses that resulted from Fine’s fraudulent activity.
The total amount of the fraud committed by Fine on the PSTIF is $1,317,469.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri State Highway Patrol and the Cole County, Mo., Prosecuting Attorney’s Office and the Missouri Petroleum Storage Tank Insurance Fund.
West St. Louis Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a West St. Louis, Mo., man was sentenced in federal court for robbing First Federal Bank in North Kansas City, Mo.
James A. Yokum, 44, of West St. Louis, was sentenced by U.S. District Judge Dean Whipple on Tuesday, June 3, 2014, to five years and three months in federal prison without parole.
On Dec. 11, 2013, Yokum pleaded guilty to stealing $600 from First Federal Bank, 1200 Armour Rd., North Kansas City.
According to an affidavit filed in support of the original criminal complaint, Yokum walked into the bank at approximately 2:45 p.m. on June 11, 2013, and waited in line at a teller window. He leaned over the counter and whispered, “Give me all your hundreds.” The teller handed him six $100 bills and he ran out of the bank.
A relative of Yokum, who was working nearby, told agents that Yokum had been staying at his house temporarily, and that Yokum had told him earlier in the day that he was going to rob a bank.
Yokum was arrested the same day by a Missouri State Highway Patrol trooper who intercepted his vehicle on eastbound Interstate 70 near Columbia, Mo.
This case was prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI.Joplin Man Pleads Guilty to 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.
Former St. Joseph Police Detective Pleads Guilty to Withholding Information about Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former longtime detective with the St. Joseph, Mo., Police Department pleaded guilty in federal court today to withholding information about a prohibited person who illegally possessed a firearm used in a gang-related shooting.
Scott Thomas Coates, 42, of St. Joseph, pleaded guilty before U.S. District Judge Dean Whipple to the felony charge of misprision of a felony. Under the terms of today’s plea agreement, Coates was forced to resign from the St. Joseph Police Department and may never be employed in any law enforcement-related job in the future.
By pleading guilty today, Coates admitted that between Oct. 24, 2007, and Sept. 7, 2010, he had knowledge that Corey Andrew Barr was in illegal possession of a firearm, but failed to inform his superior officers of that offense when they asked him about Barr’s conduct.
Under federal law, Barr was prohibited from possessing a firearm due to his domestic violence conviction. Coates admitted that on multiple, separate occasions over a period of time, he failed to disclose to his superior officers that Barr illegally possessed the firearm. Coates’s superior officers directly questioned him about Barr’s conduct during a gang-related shooting on Oct. 18, 2007, near 22nd and Messanie in St. Joseph. Barr brandished a Smith and Wesson .40-caliber handgun and repeatedly fired at other persons during the shootout.
The handgun was returned to Barr on Sept. 1, 2010. Barr was arrested on Sept. 7, 2010, when St. Joseph police officers responded to a disturbance call involving people with firearms, including assault rifles. A witness told officers that one of the men involved in the disturbance was walking through a nearby park. Officers located Barr in the park; he was carrying the loaded handgun in a holster on his waist. Barr was indicted by a federal grand jury for illegally possessing a firearm. After pleading guilty, Barr was sentenced to 47 months in federal prison.
Under the terms of today’s plea agreement, the government will recommend a sentence of probation. 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 U.S. Attorney Tammy Dickinson and Deputy U.S. Attorney Gene Porter. It was investigated by the FBI, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the cooperation of officers from the St. Joseph, Mo., Police Department.KC Man Pleads Guilty to Phone Call Hoax with False Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to making a hoax telephone call with a false threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
Manuel Garcia, 70, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a Nov. 15, 2013, federal indictment.
By pleading guilty today, Garcia admitted that he made three threatening telephone calls in October 2013 in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. Garcia admitted that he knew the threats were false when he made the calls, and that the threats were conveyed in a way that it was reasonable to believe the information.
Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia claimed that the water supplies of Kansas City, St. Louis, Wichita, and Topeka, Kansas would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked Garcia to identify himself and Garcia hung up. On the same day, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat. Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice from a previous case in which Garcia pleaded guilty to making threats by telephone and placing a hoax explosive device outside the federal courthouse. Garcia was sentenced to 18 months in federal prison in that prior case. Garcia’s residence at a transition house was close to the exact location the cellular tower system identified as the vicinity from which one of the calls originated.
Under federal statutes, Garcia 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 Brian Casey. It was investigated by the FBI.
Reed Springs Man Sentenced for Making False Tax ClaimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reed Springs, Mo., man was sentenced in federal court today for making more than $124,000 in fraudulent tax refund claims.
Michael R. Jett, 48, of Reed Springs, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole.
On Dec. 16, 2013, Jett pleaded guilty to making a false claim against the government. Jett admitted that he filed 22 false or fraudulent tax returns in order to obtain larger tax refunds between January 2009 and January 2012. Jett prepared tax returns for himself, his family and for other individuals using fraudulent W-2 forms issued by companies under his control, including Air1Assault, Creative Designs, Southwest Missouri Home Products and Corvette Specialist. Using the fraudulent W-2 forms, Jett prepared tax returns requesting tax refunds in amounts larger than actually owed. Those refunds were electronically deposited in bank accounts in his name, or the names of family members.
Jett requested a total of $124,493 in refunds on those 22 tax returns, which actually qualified for only $19,137 in legitimate refunds. The total loss for the scheme was $105,356.
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by IRS-Criminal Investigation.
KC Business Owners Plead Guilty to Defrauding Debt-stressed ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owners and operators of a Kansas City, Mo., firm that promised to help financially-strapped clients get out of debt have pleaded guilty to defrauding their clients.
John Lee Norris, 43, and Julie Tina Hatcher, 38, both of Kansas City, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes on Wednesday, May 28, 2014, to the charges contained in an April 9, 2014, federal indictment.
Norris and Hatcher operated Reaper Investment Partners, LLC; they also did business as Hydra International. In August 2011 they formed Death Productions LP, which maintained an office in Mission, Kan., before moving to Kansas City, Mo.
Both Norris and Hatcher pleaded guilty to participating in a conspiracy to defraud homeowners and other debtors who were in financial distress (as well as their victims’ lenders and the Federal Housing Administration) from August 2010 to June 28, 2013.
In addition to the conspiracy, Norris and Hatcher each pleaded guilty to one count of mail fraud. Hatcher also pleaded guilty to one count of Social Security disability fraud.
Norris and Hatcher recruited and targeted homeowners and others who were in financial difficulties with promises that they would be rescued from their financial problems, including foreclosure. Norris and Hatcher made promises and assurances to homeowners and other debtors that in exchange for a monthly payment RIP would stop and/or prevent the debtor from losing his or her home.
Norris and Hatcher admitted that they spent the payments received from RIP’s clients for their personal use. Dozens of client victims, as well as lenders, suffered hundreds of thousands of dollars in losses as a result of the conspiracy, including the loss of homes and vehicles. The federal indictment refers to victims from Lee’s Summit, Mo., St. Joseph, Mo., Gardner, Kan., Paducah, Ken., and North Wales, Penn.
Even after learning of several lost homes, RIP continued to accept monthly payments for services and continued to accept new clients with promises that clients would not lose their homes.
Norris and Hatcher claimed that RIP would draft, serve, file, and record legal forms, pleadings, and other documents; and would conduct necessary legal processes, contact the relevant parties, and implement administrative procedures to stop its clients from losing their home or property. When their clients contacted them and told them they had received notice that their homes were being foreclosed and that they had received eviction notices, Norris and Hatcher reassured them. Norris and Hatcher told their clients not to worry because these notices were part of the process, and RIP continued accepting payments. After several clients lost their homes, Norris and Hatcher reassured them that RIP was preparing the appeal paperwork and would likely win on appeal. RIP continued to take payments from other homeowners.
After informing law enforcement that they were no longer doing business, Norris and Hatcher continued to accept payments from at least one client and reassured at least one client that they were still working on the homeowner’s behalf. After closing RIP, they continued to accept payments.
Hatcher pleaded guilty to one count of Social Security disability fraud. Hatcher admitted that she failed to report her work activities and income while she received Social Security disability insurance benefits from August 2010 through April 2012.
Under federal statutes, Norris is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $2 million and an order of restitution. Hatcher is subject to a sentence of up to 65 years in federal prison without parole, plus a fine up to $2,250,000 and an order of restitution. A sentencing hearing will be held on Sept. 19, 2014.
This case is being prosecuted by Assistant U.S. Attorneys Linda Marshall and Brian P. Casey. It was investigated by the FBI, the U.S. Secret Service, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Social Security Administration – Office of Inspector General, the Johnson County, Kan., District Attorney’s Office and the Kansas City, Mo., Police Department.Former Joplin Teacher Sentenced to 28 Years for Sexual Exploitation of a ChildRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., middle school teacher was sentenced in federal court today for sexually exploiting a child victim to produce child pornography.
Charles D. Gastel, 40, of Carterville, Mo., was sentenced by U.S. District Judge Beth Phillips to 28 years in federal prison without parole. Following his prison term, Gastel must spend the rest of his life under supervised release.
Gastel was formerly a science teacher at South Middle School in Joplin. On Dec. 17, 2013, Gastel admitted that he sexually assaulted a teenage victim, identified in court documents as Jane Doe, over a period of approximately nine years. Gastel also admitted that he video-recorded some of the sexual assaults.
On July 13, 2013, a Carterville, Mo., police officer interviewed the 19-year-old victim at her home in Lamar, Mo. She reported that she had been sexually victimized by Gastel repeatedly, beginning when she was 10 years old. Jane Doe reported that during some of the assaults, Gastel used a digital video recorder to record them engaging in sexual acts.
On July 17, 2013, Gastel was interviewed at his residence by the investigators. He initially told the investigators that he did not have videos on his computer. When asked for consent to search his computer, Gastel replied that he wanted to talk to a lawyer because he had files on his computer that would end his teaching career. Gastel was then placed under arrest and officers obtained a search warrant for his residence. A forensic preview of the digital media seized by officers yielded the discovery of several video files that depicted Gaston sexually assaulting Jane Doe when she was 16 years old.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Carterville, Mo., Police Department, the Southwest Missouri Cybercrime Task Force 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."Former IRS Employees Plead Guilty to Unemployment Benefits FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six former employees of the Internal Revenue Service have pleaded guilty to receiving unemployment benefits while they worked at the agency.
Michelle Glavin, 32, and Christopher Castillo, 34, both of Kansas City, Mo., pleaded guilty today in separate appearances before U.S. District Judge Dean Whipple to the charge contained in a Dec. 10, 2013 federal indictment. Co-defendants Jesse Love, 61, and Tiffani Harding, 27, both of Kansas City, Mo., Shalonda Bradley, 41, of Grandview, Mo., and Berneta Weedin, 59, of Platte Woods, Mo., pleaded guilty on Tuesday, May 27, 2014.
By pleading guilty, each of the defendants admitted they claimed unemployment benefits while they were employed by the IRS. The defendants are no longer employed at the IRS.
Each of the defendants pleaded guilty to stealing government property by fraudulently claiming unemployment benefits to which they were not entitled. Under the terms of their plea agreements, the defendants must pay restitution for the amount of benefits illegally received.
Glavin fraudulently obtained $5,144 in Missouri benefits, plus $16,204 in federal benefits while employed at the IRS, for a total of $21,348.
Castillo fraudulently obtained $6,365 in Missouri benefits and $4,727.80 in federal benefits while working at the IRS, for a total of $11,093.
Love fraudulently obtained $8,214 in Missouri benefits and$1,404 in federal benefits while working at the IRS, for a total of $9,618.
Harding fraudulently obtained $2,664 in Missouri benefits, plus $8,650 in federal benefits while employed at the IRS, for a total of $11,315.
Bradley fraudulently obtained $6,279 in Missouri benefits, plus $250 in federal benefits while employed at the IRS, for a total of $6,529.
Weedin fraudulently obtained $3,014 in Missouri benefits, plus $3,113 in federal benefits while employed at the IRS, for a total of $6,127.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Treasury Inspector General for Tax Administration and the Missouri Department of Labor and Industrial Relations, Division of Employment Security.Kansas Woman, Man Charged with Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., woman and man were charged in federal court today with the armed robbery of an Excelsior Springs, Mo., bank.
Virginia Lynn Spencer, 28, and Steven Dale Robinson, 22, both of Kansas City, Kan., were charged in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Spencer and Robinson remain in federal custody pending a detention hearing.
Spencer and Robinson are each charged in one count of aiding and abetting others to steal $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on Friday, May 23, 2014. Spencer is also charged with one count of aiding and abetting another person to use a firearm during and in relation to a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, Spencer entered the bank at about 5:30 p.m. with another person, who has not been charged. That person stood in the lobby and pointed a .32-caliber revolver in the air with his finger on the trigger. They ordered bank employees to sit on the floor, the affidavit says, then Spencer dove on top of the middle lobby teller counter and began opening the tellers drawers in search of money. Spencer pulled herself over the counter and went behind the teller counter, the affidavit says, before jumping back over the counter while holding a bag.
Both robbers ran from the bank, according to the affidavit, with Spencer saying, “Have a nice day” on her way out.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. She saw Robinson sitting in the driver’s seat of a Grand Marquis that was backed in near the bank’s front doors at an angle, the affidavit says. The two robbers ran out of the bank’s front doors and got into the vehicle. The vehicle quickly left the Bank Midwest parking lot, narrowly missing the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. A pursuit followed, and the robbers’ vehicle crashed near Kings Highway and Dam Road in Liberty, Mo. Spencer and Robinson were arrested. A third person remains hospitalized as a result of the crash.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle.
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 Justin Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.Gower Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Gower, Mo., man has been indicted by a federal grand jury for possessing child pornography and attempting to receive child pornography over the Internet.
William D. Everett, 43, of Gower, was charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo. That indictment was unsealed and made public upon Everett’s arrest and initial court appearance on Friday, May 23, 2014.
Everett is charged with two counts of attempting to receive child pornography over the Internet and one count of possessing child pornography.
The federal indictment contains a forfeiture allegation, which would require Everett to forfeit to the government two desktop computers and two computer hard drives that were allegedly used to commit the offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Gower, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Lee's Summit Soccer Coach Indicted on Eight Additional Charges of 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 Lee’s Summit, Mo., youth soccer coach was indicted by a federal grand jury today on eight additional charges related to producing child pornography by secretly videotaping members of his soccer team.
Joel D. White, 41, of Lee’s Summit, was charged in an 11-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a three-count indictment that was returned on April 30, 2013, and adds the counts regarding eight additional victims. White has remained in federal custody since his arrest on the original indictment.
White formerly coached a girls under-12 soccer team and a girls under-15 soccer team through the Lee’s Summit Soccer Association. He has been in federal custody since his arrest in April 2013. The Lee’s Summit Soccer Association has cooperated fully with law enforcement officers during this investigation.
Today’s indictment charges White with 11 separate counts of attempting to produce child pornography. White allegedly attempted to use 11 child victims – identified in the indictment as Jane Doe #1 through Jane Doe #11 – to produce child pornography between May 1, 2012 and March 20, 2013.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography. Each of the 11 counts contained in the indictment carries a mandatory minimum sentence upon conviction of 15 years in federal prison without parole.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers in Commerce City, Colo., discovered videos of nude minors on White’s camera. White was at a soccer stadium in Colorado for a World Cup qualifying game when his cameras were seized by law enforcement officers as part of a criminal investigation.
Several videos allegedly depict White positioning a video camera in a bedroom of his residence in such a way that the camera is hidden. Shortly after White leaves the room, the affidavit says, the videos depict several minors, approximately 11 or 12 years old, entering the room and changing their clothes. Minors are fully nude in the videos and do not appear to know they are being videotaped.
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 Teresa A. Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."KC Man Pleads Guilty to $2.6 Million Health Care FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to submitting more than $2.6 million in health care claims, although he was excluded from participating in any federal health care programs after being convicted of a felony drug charge.
Paul Schleicher, 40, of Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to a federal information that charges him with nine counts of making false statements relating to health care matters.
Schleicher formed Health Care at Home to provide health care services and submitted 14,807 claims to Medicare, Missouri Medicaid, Federal Employees Health Benefits Program and TRICARE (the health care program serving uniformed service members, retirees and their families) from June 19, 2008, to Oct. 5, 2012. All claims were for health care services that were provided after Schleicher was excluded from participating in any federal health care programs.
On May 30, 2008, Schleicher was excluded for a period of five years from all federal health care programs due to his felony conviction for conspiracy to manufacture and distribute a controlled substance (gamma hydroxybutyric acid, or GHB). Because of his interest and involvement in Health Care at Home and his failure to disclose this interest, Schleicher made false and fraudulent statements.
The total billed amount was $2,643,693 and the total amount actually paid was $974,762. Under the terms of today’s plea agreement, Schleicher must pay $974,762 in restitution.
Under federal statutes, Schleicher is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 on each of the nine counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by Health and Human Services – Office of Inspector General, Office of Investigations; the Centers for Medicaid and Medicare Services; the U.S. Department of Defense – Office of Inspector General, Defense Criminal Investigative Service; and the U.S. Office of Personnel Management – Office of Inspector General.KC Man Indicted for Illegally Transporting, Dumping Hazardous WasteRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for illegally transporting and dumping hazardous waste.
John Schaller, 50, of Kansas City, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Schaller owned and operated R.E.I.T., a computer recycling company at 1534 Burlington St., North Kansas City, Mo.
According to the federal indictment, Schaller was hired by an employee and agent of Z-International, which used large quantities of ink and ink-related products in its business of making labels, to liquidate the property in its building at 110 E. 16th Ave., Kansas City, Mo, when the business was closed in July 2010. As part of the liquidation job, Schaller was required to dispose of several barrels of ink or other liquids.
Schaller allegedly dumped approximately 23 containers of hazardous materials at Studer Container Service, 520 Madison Ave., Kansas City, Mo., in December 2011 without knowing if Studer had sufficient authorization to accept hazardous waste. Schaller did not hold a permit authorizing the transportation, storage or disposal of hazardous waste, the indictment says, and Studer did not have a permit to receive hazardous waste.
Studer is located in a high traffic area frequented by passers-by, including pedestrians, vehicles and bicycles. Schaller made no attempt or inquiry to determine whether Studer had sufficient authorization to accept the containers, the indictment says. Schaller allegedly did not employ the transportation of hazardous waste via manifest as required by law.
EPA began a sampling and clean-up operation at Studer on June 28, 2012. The EPA Superfund Program cleaned up the hazardous waste at Studer to eliminate possible adverse effects on human health and environment. The total EPA Superfund cost was $36,871. Of the 38 samples collected from the containers dumped at Studer, five tested positive for ignitability and two tested positive for toxicity.
Today’s indictment charges Schaller with one count of unlawfully transporting hazardous waste and one count of unlawfully disposing of hazardous waste.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Environmental Protection Agency, Criminal Investigation Division.Jefferson City Man Indicted for Distributing HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was indicted by a federal grand jury today for distributing heroin.
Brian Boykin, also known as “Denormus Okain” and “B,” 36, of Jefferson City, was charged in a three-count indictment returned by a federal grand jury in Jefferson City.
Today's indictment alleges that Boykin distributed heroin on two separate occasions in Cole County, Mo., on Nov. 20 and Nov. 21, 2013. Boykin is also charged with one count of possessing heroin with the intent to distribute on Feb. 13, 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 Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Columbia Man Indicted for Distributing Heroin to a Minor who may have Died from OverdoseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for distributing heroin to a 16-year-old minor who died of a suspected heroin overdose.
Jon Patrick Washington, also known as “Doom,” 27, of Columbia, was charged in a single-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Washington on May 7, 2014. Washington remains in federal custody.
Today’s indictment alleges that Washington distributed heroin to a minor on April 2, 2014.
According to an affidavit filed in support of the original criminal complaint, Columbia police officers responded to a suspected heroin overdose death at the Providence Suites, 1718 N. Providence Rd., in Columbia on April 3, 2014. The victim was a 16-year-old female. A confidential informant later reported that the heroin had been supplied by Washington and another person.
The Boone County Medical Examiner has not released an official cause of death.
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 Columbia, Mo., Police Department, the Drug Enforcement Administration and the Missouri State Highway Patrol.
Southwest City Man Sentenced for Illegally Reentering U.S.Read the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for illegally reentering the United States after having been deported.
Isaac Elias Rodriguez-Nava, 27, a citizen of Mexico residing in Southwest City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to four years and nine months in federal prison without parole.
Rodriguez-Nava, who pleaded guilty on Dec. 11, 2013, was arrested at the Tyson Foods plant in Noel, Mo., where he was employed. Rodriguez-Nava came to the attention of federal law enforcement after his fingerprints were taken at the Southwest City jail when he was arrested for driving without a valid license.
Rodriguez-Nava was deported from the United States on Jan. 5, 2012, after serving a prison sentence in Texas for aggravated robbery with a deadly weapon and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO).
Operation Dirty GlassRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing a large amount of PCP for distribution and for illegally possessing firearms.
Today’s sentence is a result of Operation Dirty Glass, a multi-agency investigation into a large-scale PCP and crack cocaine drug-trafficking organization in Kansas City that resulted in a series of 10 indictments that charged 20 defendants in separate but related cases.
Damond S. Hill, also known as “Day Day,” 35, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 19 years in federal prison without parole.
On July 1, 2013, Hill pleaded guilty to possessing one kilogram or more of PCP with the intent to distribute. Hill also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Law enforcement officers executed a search warrant at Hill’s residence following a controlled purchase of marijuana from Hill by an informant. Officers discovered nearly five kilograms of PCP packaged for distribution in various-sized bottles (including eye-droppers, gallon jugs and 32-ounce plastic bottles). Officers also found two .40-caliber pistols and a .45-caliber pistol, more than $3,000 and additional packaging material and items associated with drug trafficking.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Former Church Youth Director Sentenced to 30 Years for Child Exploitation and PornographyRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man who sexually abused several minor victims was sentenced in federal court today for transporting a minor across state lines for illegal sexual activity and for receiving child pornography over the Internet.
Dennis W. Myers, 53, of Blue Springs, was sentenced by U.S. Chief District Judge Greg Kays to 30 years in federal prison without parole, which is the statutory maximum sentence.
Myers formerly served as a youth director at Christ United Methodist Church in Independence, Mo., and at First United Methodist Church in Springdale, Ark. On Aug. 5, 2013, Myers pleaded guilty to engaging in illicit sexual activity with a 16-year-old victim, identified as Jane Doe #1, after transporting her across state lines, and to receiving child pornography over the Internet.
Myers met Jane Doe #1 when he was youth director at the First United Methodist Church in Springdale. According to court documents, Myers began engaging in sexual activity with the victim when she was 14-15 years old and in the eighth grade. Myers left his employment with the church and started a DJ business in approximately 1993-94, when Jane Doe #1 was 15 years old. He was training Jane Doe #1 to assist him in that business. From November 1994 to November 1995, when Jane Doe #1 was approximately 16 years old, Myers transported her from Arkansas to the Kansas City, Mo., area, where they engaged in sexual intercourse. Court documents report that towards the end of their relationship, as Jane Doe #1 attempted to break away from him, Myers provided her with an excessive amount of wine and raped her as she cried and tried to fight him off.
Years later Myers moved to Blue Springs. Following complaints by two adolescents of inappropriate sexual activity, law enforcement officers searched his home on Sept. 15, 2011, and seized his computer. Forensic examiners found a video of child pornography that had been downloaded from the Internet and viewed on the computer.
Myers was sentenced today as a serial abuser for engaging in a pattern of activity involving the sexual abuse or exploitation of six additional minors, including the victims of a case filed in the Circuit Court of Jackson County, Mo. In relation to the Jackson County case, Myers digitally penetrated a 12-year-old girl and fondled another 12-year-old girl, both of which occurred in his home. According to court documents, Myers has perpetrated other instances of sexual abuse or exploitation of minors, including:
- His fondling of a fourth victim, 13 years of age, on an overnight church lock-in;
- His fondling of a fifth victim, 16-17 years of age, on a church camping trip;
- His fondling of a sixth victim, 15-16 years of age, at his apartment;
- His production in his Blue Springs home of a pornographic image of a prepubescent girl, a seventh victim.
In 1994 a victim in Independence wrote to the church in Arkansas to disclose Myers’ activities while he had been the youth director in Independence. Myers, who was working at the Arkansas church at the time, intercepted the mail. According to court documents, Myers then wrote to the victim and tried to persuade her not to disclose, telling her, among other things, that it would bring scandal to the church.
The government also offered evidence at today’s sentencing hearing of other instances of inappropriate and suspicious, although not criminal, interactions between Myers and neighbor girls.
Under the terms of his plea agreement, Myers must also plead guilty to the charges of statutory sodomy in the first degree and attempted enticement of a child in a pending case in the Circuit Court of Jackson County. The Jackson County Prosecutor’s Office will recommend a sentence of 10 years on each of the two state counts to run concurrently with each other and with the federal sentence.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Blue Springs, 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."Two Blue Springs Realtors Sentenced for $11 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Blue Springs, Mo., real estate agents and several co-defendants have been sentenced in federal court for their roles in an $11 million mortgage fraud scheme.
Leann Raejeana Turner, 44, of Blue Springs, was sentenced to three years in federal prison without parole on Monday, May 12, 2014. The court also ordered Turner to pay $4,912,040 in restitution.
On May 30, 2012, Turner pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. Turner is one of nine defendants who participated in the mortgage fraud scheme from early 2005 to Aug. 4, 2006. Turner was a real estate agent working for a series of real estate companies during the conspiracy. Carole L. Colson, 71, formerly doing business as Carole Colson Real Estate in Blue Springs, now of Lake Worth, Fla., was a real estate agent. Bruce Q. Williams, 44, of Kansas City, Kan., and Anthony E. Hicks, 42, of Little Rock, Ark., were loan officers at mortgage brokerage companies. Other co-defendants were “home buyers” who conspired to defraud mortgage lenders.
Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove, Mo. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 from the loan proceeds in illegal secret kickbacks. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
The scheme involved buying and selling homes at inflated prices, obtaining mortgage loans at the inflated prices, then kicking back $100,000 of the excess loan proceeds to each of the home buyers without the lenders’ knowledge. The scheme financially benefitted all of the conspirators. Turner (the real estate agent for 15 of the 16 transactions) received commissions and sometimes hidden payments and assets; Williams and Hicks (the loan officers) received commissions from the transactions; and the home buyers received kickbacks.
Turner and Colson listed and arranged for the sale of the homes at inflated prices and solicited buyers. Misrepresentations and omissions of material facts were made to mortgage lenders in order to obtain the loans. In order to obtain the loan proceeds without the lenders’ knowledge, the buyers created fictitious businesses that issued false invoices that claimed the businesses had provided work and services for which they were entitled to receive loan proceeds.
In addition to Turner’s sentencing this week, Colson was sentenced to five years of probation (including six months of house arrest, 120 hours of community service and ordered to pay $2,291,110 in restitution); Williams was sentenced to one year and one day in federal prison (and ordered to pay $3,443,123 in restitution); Hicks was sentenced to 10 months in federal prison (and ordered to pay $953,958 in restitution); Linda Joyce Henry Johnson, 65, of Corona, Calif., was sentenced to five years of probation (with six months of house arrest and ordered to pay $228,744 in restitution).
James Arthur Nash, Jr., 44, and Arman Nshanian, 38, both of Corona, Calif., two deputies of the Los Angeles County, Calif., Sheriff’s Department, were convicted at trial on Dec. 6, 2013, and await sentencing. They were each found guilty of conspiracy to commit wire fraud. In addition to the criminal conspiracy, Nash was convicted of four counts of wire fraud and Nshanian was convicted of two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process.
Nash fraudulently purchased two residential properties in Blue Springs, Mo. He received $100,000 from each property. Nshanian fraudulently purchased a residential property in Lee’s Summit, Mo., and received $100,000.
Mark P. Billey, 40, of Buena Park, Calif., was sentenced on Sept. 20, 2011, to two years and nine months in federal prison and ordered to pay $701,450 in restitution.
Zelda Ann Jackson, 41, of Newbury Park, Calif., a real estate agent, pleaded guilty to assisting her husband in the purchase of a property. A sentencing hearing is scheduled on May 28, 2014.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI and IRS-Criminal Investigation.KC Man Sentenced to 15 Years for Illegal FirearmsRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing firearms.
Christopher J. Harris, 31, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Harris was sentenced as an armed career criminal due to his prior felony convictions.
On Feb. 12, 2014, Harris pleaded guilty to being a felon in possession of firearms. Harris admitted that he was in possession of a Jennings .22-caliber pistol and a Smith & Wesson .38-caliber revolver on July 17, 2013.
Law enforcement officers found the loaded firearms (along with two more loaded Smith & Wesson .38-caliber revolvers and 19 baggies of cocaine and marijuana) at Harris’s residence while executing a search warrant as part of a drug-trafficking investigation.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harris has two prior felony convictions for distributing a controlled substance and a prior felony conviction for assault.
This case was prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by the Kansas City, Mo., Police Department.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.KC Man Sentenced for Possessing PCP to DistributeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing phencyclidine, or PCP, to distribute.
Jamel Jackson, 37, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.
On Dec. 23, 2013, Jackson pleaded guilty to possessing PCP with the intent to distribute.
Jackson was arrested on Dec. 21, 2011, by Kansas City police detectives who were conducting surveillance on him in order to arrest him on an outstanding Jackson County warrant for drug trafficking. At the time of his arrest, Jackson was driving a rental car. When the car was searched, investigators found the PCP, including two packages of More brand cigarettes (which are commonly dipped into PCP liquid by distributors and then smoked by PCP users), four small glass bottles containing PCP residue and a bottle in Crown Royal bag containing 128.77 grams of PCP liquid.
While he was detained after his arrest, Jackson made several telephone calls from the monitored detention unit phone system. During these calls, he made several statements about the rental car he had been driving and its contents. In one call Jackson stated, “I could’ve swore I hid them things in there.”
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.Jury Convicts Lebanon Man of Firearms Violations after he Rammed into Pawn Shop with his CarRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., man was convicted in federal court today for illegally possessing a firearm and attempting to acquire a firearm.
James Roy Jacoby, 31, of Lebanon, was found guilty of both counts of a May 8, 2011, federal indictment that charges him with being a felon in possession of a firearm and with making false statements in an attempt to acquire a firearm.
On Jan. 15, 2013, Jacoby took out a $50 pawn broker loan at Rawhide Gun and Pawn, 321 W. Commercial, in Lebanon. Jacoby gave a Remington 16-gauge shotgun as collateral. The shotgun belonged to Jacoby’s mother.
On Feb. 1, 2013, Jacoby returned to Rawhide Gun and Pawn to redeem his pawn ticket and retrieve the shotgun. Jacoby completed ATF Form 4473 (Firearms Transaction Record Part I – Over-the-Counter). On the form, Jacoby falsely answered “No” to the question about whether he had a felony conviction: “Have you ever been convicted in any court of a felony, or any other crime, for which the judge could have imprisoned you for more than one year, even if you received a shorter sentence including probation?”
After Jacoby paid $60 to a store employee to repay the loan, the employee informed Jacoby that the National Instant Criminal Background Check System (NICS) showed that he was a felon, and that his request for the return of the shotgun was being denied. The employee also refused to return Jacoby’s loan payment, and said the store would not release the shotgun to another person.
Jacoby then turned over a glass display case, and the employee ordered him to leave the pawn shop. Jacoby exited the shop and got into his car. Jacoby twice rammed the store with his car, striking the employee, a store patron, and another vehicle. Jacoby’s car became disabled, and he fled on foot.
Jacoby was subsequently subdued by Lebanon police officers after a struggle in which he struck an officer. Jacoby was charged in state court with assault, armed criminal action and property damage, and held on a $100,000 bond.
It is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jacoby has two prior felony convictions for assault and prior felony convictions for assaulting a law enforcement officer and resisting arrest.
Under federal statutes, Jacoby is subject to a mandatory minimum sentence of 15 years in federal prison without parole. Jacoby will be sentenced as a career criminal due to his prior felony convictions. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge Beth Phillips, ending a trial that began Monday, May 12, 2014.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lebanon, Mo., Police Department.
Mexican National Sentenced for Meth, Illegally Entering U.S.Read the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for possessing methamphetamine that she intended to distribute in Morgan County, Mo., and for illegally reentering the United States.
Maria Teresa Marrufo, 48, a citizen of Mexico residing in Gardner, Kan., was sentenced by U.S. District Judge Fernando J. Gaitan to 10 years in federal prison without parole.
On Aug. 19, 2013, Marrufo pleaded guilty to possessing methamphetamine with the intent to distribute and to illegally reentering the United States after having been deported.
According to court documents, Marrufo was arrested in Morgan County while delivering 224 grams of pure methamphetamine. Her 16-year-old son was driving the car, and Maruffo, the passenger, provided an alias when confronted by officers.
At the time she committed this offense, Maruffo was still on supervised release for a prior drug offense. Maruffo was convicted of two drug-trafficking felonies for attempting to smuggle marijuana into the United States. After being charged and released, Maruffo absconded and remained a fugitive from justice for 12 years. She was deported in 2012, but illegally reentered the United States and resumed her illegal drug-trafficking activities.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Morgan County, Mo., Sheriff’s Department and the Mid-Missouri Drug Task Force.
Fulton Man Sentenced to 15 Years for Marijuana, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man was sentenced in federal court today on two separate cases for marijuana trafficking and for illegally possessing a firearm.
Corey James Brewer, 30, of Fulton, was sentenced by U.S. District Judge Fernando J. Gaitan to 15 years in federal prison without parole. Brewer was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 25, 2013, Brewer pleaded guilty to possessing marijuana with the intent to distribute. Brewer also pleaded guilty to a separate federal indictment that charges him with being a felon in possession of a firearm.
Brewer admitted that he acquired marijuana on a trip to Kansas City, Mo., in September 2010. After Brewer arrived at a Kansas City residence, he placed a black suitcase, which contained about 50 pounds of marijuana, inside a toolbox in the bed of a truck that was being driven by a cooperating source. When the vehicle was stopped during the return trip at an exit on I-70 in Boone County, Mo., law enforcement officers seized the suitcase. They also seized approximately one kilogram of cocaine that was discovered underneath the seat of another defendant, Jason Randall Holloway of Callaway County, Mo.
Holloway was sentenced to five years in federal prison without parole after pleading guilty in a separate but related case to participating in a conspiracy to distribute 100 kilograms or more of marijuana and five kilograms or more of cocaine from 2007 to September 2010. Holloway also pleaded guilty to three additional counts of possessing marijuana with the intent to distribute, distributing marijuana and possessing marijuana and cocaine with the intent to distribute.
By pleading guilty to the second federal indictment, Brewer admitted that he was a felon in possession of firearms.
An employee of the Wal-Mart store in Fulton, Mo., contacted two police officers who were at the store in September 2012 to report that Brewer had just purchased more than 40 boxes of ammunition. Police officers interviewed Brewer and seized from his residence a Kel Tec 9mm pistol, a Rock Island .45-caliber pistol, a DPMS AR-15, a Maverick Arms 12-gauge shotgun, a Taurus .380-caliber pistol, and ammunition. Brewer told officers that he normally carried the .45-caliber and 9mm handguns at his shop and that he had a vest that concealed the pistols underneath his arms.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Brewer has six prior felony convictions for burglary, three prior felony convictions for stealing, a prior felony conviction for property damage, two prior felony convictions for stealing a motor vehicle and a prior felony conviction for nonsupport.
These cases were prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. They were investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, and Firearms and Explosives, and MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group).Camden County Man Sentenced for Meth, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Camden County, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Donald George LaFlamme, III, 37, of Camden County, was sentenced by U.S. District Judge Fernando J. Gaitan to 12 years and seven months in federal prison without parole.
On Nov. 25, 2013, LaFlamme pleaded guilty to participating in a conspiracy to distribute methamphetamine. He also pleaded guilty to two counts of possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
According to court documents, Lake Ozark, Mo., police officers were dispatched to LaFlamme’s room at a local hotel on Sept. 26, 2010, in reference to a domestic disturbance call. Officers contacted Krystle Ann Gezendorf, 27, who reported that she had been assaulted by LaFlamme, her boyfriend. When officers searched the hotel room, they found a Clerke .32-caliber revolver under the bed as well as a hypodermic needle, a bag containing methamphetamine and a piece of aluminum foil containing methamphetamine.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. LaFlamme has a prior felony conviction for fraudulently attempting to obtain a controlled substance.
Gezendorf told officers that LaFlamme had a large amount of money and methamphetamine that was likely stashed nearby. Hotel staff reported seeing LaFlamme entering several rooms and two housekeeping closets prior to law enforcement arriving. When officers searched those areas, they found additional methamphetamine and $2,525.
Gezendorf told federal agents that LaFlamme acquired approximately one half pound of methamphetamine approximately two to three times a week from a source in Kansas City, Mo., named Lorenzo Carbajal Pina, 52.
On Nov. 23, 2010, Camdenton, Mo., police officers were dispatched to a motor vehicle crash involving a 1996 Chevrolet Blazer. LaFlamme was discovered unconscious behind the wheel of the Blazer. He had to be extricated from the vehicle and was placed inside an ambulance to be transported to the hospital. While tending to LaFlamme, ambulance personnel discovered four bags of methamphetamine weighing approximately two ounces, a bag containing a user quantity of marijuana, and $3,054 inside LaFlamme’s pants pockets.
Gezendorf was sentenced to five years in federal prison without parole after pleading guilty to her role in the conspiracy to distribute methamphetamine. Pina was sentenced to 11 years and three months in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mid-Missouri Drug Task Force, the Lake Ozark, Mo., Police Department, and the Camdenton, Mo., Police Department.Former KC Attorney Pleads Guilty to Money LaunderingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., attorney pleaded guilty in federal court today to money laundering.
James C. Wirken, 69, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Fernando J. Gaitan to a federal information that charges him with one count of money laundering.
Wirken was a lawyer and principal at The Wirken Law Group until he was disbarred by the Missouri Supreme Court in 2012.
By pleading guilty today, Wirken admitted that he withdrew money from his law firm’s trust account, which was being held for the benefit of a client, and deposited the funds into his law firm’s operating account. Wirken then used the funds for his personal benefit. All of the transactions were conducted without the client’s consent.
Wirken wrote six checks between December 2009 and Jan. 13, 2010, totaling $116,730.
Today’s plea agreement cites the specific incident in which Wirken transferred $51,000 into the law firm’s operating account, then directed an employee to purchase a $50,000 cashier’s check from that account. The $50,000 cashier’s check was to repay a loan that another client had made to Wirken, which had been in default since Oct. 2, 2008.
Under federal statutes, Wirken is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 (or not more than twice the amount of the criminally derived property) 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 Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.Jury Convicts Two Inmates of Murdering Prisoner, Trial Enters Death Penalty PhaseRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two inmates of the U.S. Medical Center for Federal Prisoners in Springfield, Mo., have been convicted in federal court of murdering another inmate at the facility.
Wesley Paul Coonce, Jr., 34, and Charles Michael Hall, 43, who are both inmates at the U.S. Medical Center for Federal Prisoners, were found guilty on Wednesday, May 7, 2014, of one count of murder in the first degree. Coonce was also found guilty of one count of murder by an inmate serving a life sentence.
The evidence presented at trial demonstrated that another inmate at the prison medical center, Victor Castro-Rodriguez, 51, was found deceased on the floor of his cell on Jan. 26, 2010.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about an hour before returning the guilty verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began April 28, 2014.
The trial now enters the penalty phase in which the jury must determine the sentences for Coonce and Hall. Under federal statutes, Coonce and Hall are subject to either the death penalty or life in federal prison without parole.
This case is being prosecuted by Trial Attorney James D. Peterson of the Capital Case Section of the U.S. Department of Justice’s Criminal Division and Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the Bureau of Prisons.