Western District of Missouri
Press releases recorded for this federal judicial district.
Travel Agent Indicted for $360,000 Fraud Scheme, Stole from Willard High School BandRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a travel agent was indicted by a federal grand jury today for stealing $360,000 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones.
Calliope Rocky Saaga, also known as “Ope,” 39, of Saratoga Springs, Utah, was charged in a 15-count indictment returned by a federal grand jury in Springfield, Mo.
According to today’s indictment, Saaga, doing business as Present America Tours, LLC, contracted with the Willard High School Band Boosters in January 2011 to provide travel arrangements for a June 2012 band trip to Hawaii. Saaga was responsible for booking airfare, lodging, transportation, meals, tours, and travel insurance for over 300 students and chaperones. The Willard High School Band Boosters wired 12 payments of $30,000 each to Saaga between February 2011 and January 2012.
Saaga booked no reservations as required in the contract, the indictment says. Instead, as he received wire transfers from the band boosters, Saaga allegedly used the funds to finance his personal lifestyle, which included gambling in Las Vegas, Nev., international travel to Samoa, a trip to Disneyland, and numerous other expenses unrelated to the terms of the contract.
As a result of Saaga’s diversion of funds, the indictment says, the Willard High School band trip was cancelled and the Willard High School Band Boosters suffered a loss of $360,000.
While he was spending the money of the Willard High School Band Boosters to finance his personal lifestyle, the indictment says, Saaga transmitted e-mails to the Willard High School director of bands, which lulled the band boosters into believing that their trip to Hawaii was on schedule.
Today’s indictment charges Saaga with 12 counts of wire fraud and three counts of money laundering. The indictment also contains a forfeiture allegation, which would require Saaga to forfeit to the government any property derived from the proceeds of the alleged offense, including a $400,000 money judgment.
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 IRS-Criminal Investigation, the FBI and the Willard, Mo., Police Department.KC Man, Lee's Summit Woman Indicted for Transporting a Minor to Kansas for ProstitutionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man and a Lee’s Summit, Mo., woman have been indicted by a federal grand jury for transporting a minor across states lines for prostitution.
Milton Charles Wilson, also known as “Barbwire,” 58, of Kansas City, and Kayla Pinkerton, also known as “Foxy,” 18, of Lee’s Summit, were charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, April 30, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of Wilson and Pinkerton. Wilson and Pinkerton remain in federal custody without bail pending a detention hearing on Thursday, May 8, 2014.
The federal indictment alleges that Wilson and Pinkerton transported a child victim across state lines to engage in prostitution in Kansas in December 2013.
According to court documents, Wilson advertised the child victim for prostitution on Backpage.com and paid for an area hotel room. Wilson transported the child victim from a Missouri residence, the government alleges in a detention motion, to a Kansas City hotel and at least two locations in Overland Park, Kan., where the child victim engaged in prostitution activity for money. Wilson allegedly waited in his car while the child victim engaged in these prostitution acts.
Wilson is also charged with being an unlawful user of a controlled substance in possession of several firearms. Wilson allegedly possessed a Cobra .380-caliber pistol, a Glock .40-caliber pistol, a Remington 12-gauge shotgun and a Ruger .243-caliber rifle on Feb. 13, 2013.
The government filed a motion for Wilson to be detained in federal custody without bail. The government’s detention motion notes that the crime of transporting a minor with intent to engage in criminal sexual activity carries a mandatory minimum sentence of 10 years in federal prison without parole and a maximum penalty of life in federal prison without parole. For that and other reasons cited in the detention motion, the government believes that Wilson poses a flight risk and a danger to the community.
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 D. Daly. It was investigated by the FBI, the Kansas City, Mo., Police Department, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives.KC Man Sentenced to 15 Years for Illegal FirearmRead 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 a firearm.
Reginald Cole, 26, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Cole was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 14, 2013, Cole pleaded guilty to being a felon in possession of a firearm. Cole admitted that he was in possession of an Auto Ordinance .45-caliber handgun on Oct. 11, 2012. Cole sold the firearm to an undercover law enforcement officer during an undercover operation by the ATF and the Kansas City, Mo., Police Department.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Cole has three prior felony convictions for burglary.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and 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.Jury Convicts Former Wichita Man of $2.7 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Wichita, Kan., man was convicted in federal court today of his role in a $2.7 million mortgage fraud scheme.
Terrence Matthew Brown, also known as Terry Brown, 48, of Round Rock, Texas, formerly of Wichita, was found guilty of conspiracy to commit wire fraud and five counts of wire fraud.
Evidence presented during the trial indicated that Brown participated in a mortgage fraud conspiracy in 2006 in which mortgage lenders were defrauded in 10 separate loans for five properties, which were obtained by false statements in loan applications and other documents. Brown lied to lenders about his income, his employment, his assets and liabilities, his intent to occupy the properties and other matters. Mortgage loans totaling $2.7 million were approved to purchase properties in Greenwood, Mo., Kansas City, Mo., Overland Park, Kan., and Leawood, Kan., all within a period of three months.
Brown and co-conspirators structured the home purchases in such a way that Brown would receive money from the loan proceeds without the knowledge or consent of the lenders. Brown received more than $200,000 in illegal kickbacks. In order to receive the kickbacks without the lenders finding out, Brown submitted false invoices to the title companies closing the loans. The invoices were in the names of businesses that claimed to be entitled to payment for services supposedly rendered.
All the loans went into default and the properties were foreclosed.
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 verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, April 28, 2014.
Under federal statutes, Brown is subject to a sentence of up to 120 years in federal prison without parole, plus a fine up to $1.5 million and an order of restitution. A sentencing hearing is scheduled for Aug. 1, 2014.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI.
Former Liberty Man Indicted for $6.2 Million Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Liberty, Mo., man has been indicted by a federal grand jury for a $6.2 million series of investment fraud schemes.
Henry Thomas Hammond, 57, of Ponte Vedra Beach, Fla., formerly of Liberty, was charged in a 12-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, April 30, 2014. The indictment was unsealed and made public today upon Hammond’s arrest and initial court appearance in Florida.
Hammond owned, operated or was involved in several businesses, including Longhorn Construction, Inc.; Longhorn Properties, LLC; Longhorn Development Group, Inc.; Longhorn Construction, North American Investment Group, Inc., and others.
The federal indictment alleges that between July 16, 2008, and Nov. 24, 2010, Hammond engaged in several schemes to defraud individuals and entities by soliciting investments to support a Ponzi scheme. Hammond allegedly promised investors an exorbitant rate of return on their investments, when in fact he used those investments for his own personal expenses or to pay other investors as part of the Ponzi scheme. Hammond allegedly deposited investors’ funds into his personal bank account to make vacation home payments for a residence at Table Rock Lake, for example, and for elaborate hunting excursions.
Blackberry Development Scheme
Among the fraud schemes cited in the indictment, one example involves the Blackberry commercial development in Liberty, which Hammond never completed.
On Oct. 16, 2007, Patriots Bank approved a loan to Duffey Land Development, LLC, for construction financing for two commercial retail/office buildings in the Blackberry development. Duffey contracted with Longhorn Construction to build two buildings, with Hammond as the general contractor. Hammond was responsible for paying the sub-contractors for work performed. Hammond submitted invoices received from the sub-contractors to Duffey. Duffey submitted a draw request to Patriots Bank. The funds were disbursed from the bank to Duffey, then from Duffey to Hammond. It was Hammond’s responsibility to pay the sub-contractors.
The indictment alleges that Hammond received approximately $1,203,331 from January 2008 through December 2008, but that he fraudulently used funds for personal expenses, such as a trip to Las Vegas, hunting, a lake house, and money to his wife. During this year, Hammond spent approximately $48,314 for hunting expenses. Hammond sent approximately $45,500 to Hogan Land Title to purchase a large lake home. A total of $298,814 was diverted for personal use from the construction draw process instead of paying subcontractors.
In October 2009, International Finance and Trust (IFT) entered into a contract with Hammond involving investing $3 million to purchase land for development of the Blackberry project. Another investor provided $1 million for a 25 percent ownership stake in Blackberry. After receiving $2 million in funding, the indictment says, Hammond transferred it to an account held in the United Arab Emirates to be utilized in an overseas investment platform. Investors were not told the funds were being utilized for the investment platform. Hammond allegedly received approximately $499,950 from IFT’s investment and deposited the funds into one of his companies’ bank accounts.
Wire Fraud Scheme
During a 27- month period from Aug. 26, 2008, to Nov. 22, 2010, Hammond allegedly used his various wire fraud schemes to pay for his personal expenses, including:
(a) $1,303,632 in personal withdrawals made by Hammond;
(b) $961,707 for Hammond’s lake house, valued at $2.25 million;
(c) $777,742 for purported business expenses for Hammond’s companies;
(d) $442,962 for Hammond entertainment/retail;
(e) $325,696 for Hammond hunting excursions/taxidermy; and
(f) $279,628 for personal vehicle purchases.Bankruptcy Fraud
According to the indictment, Hammond filed a Chapter 13 Bankruptcy on May 17, 2012,
to stop foreclosure on his Liberty residence. In his bankruptcy filings, Hammond failed to disclose personal guarantees provided to several investors. Hammond was dismissed from the Chapter 13 Bankruptcy on Sept. 17, 2012, because he failed to make payments as agreed to in his bankruptcy plan. The bankruptcy case was closed on March 13, 2013.False Seal Scheme
In connection with his scheme to defraud, Hammond fraudulently used the Department of Justice emblem and “U.S. Department of Justice, Office of Legislative Affairs” letterhead on a Sept. 30, 2009, letter. The fraudulent letter was purportedly written on behalf of the U.S. Assistant Attorney General to U.S. Senator Lindsey Graham. Hammond used the letter with the letterhead and seal to divert attention from his involvement in investment fraud and to convince investors or other unindicted conspirators to turn over controls of some investments.
The federal indictment charges Hammond with two counts of bank fraud, four counts of wire fraud, one count of bankruptcy fraud, four counts of money laundering and one count of using the seal of the Department of Justice on a fraudulent letter.
The indictment also contains a forfeiture allegation, which would require Hammond to forfeit to the government any property obtained as a result of the alleged violations, including $6,250,289.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.Stella Man Pleads Guilty to Transporting a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stella, Mo., man pleaded guilty in federal court today to transporting a minor across state lines for illicit sex.
Tong Yang, 45, of Stella, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Jan. 21, 2014, federal indictment.
By pleading guilty today, Yang admitted that he traveled to Minnesota on Dec. 7, 2013, to pick up a 15-year-old girl and bring her back to Missouri with the intent to engage in illicit sexual activity.
Yang had contacted the minor victim a couple of weeks earlier by sending her a friend request on Facebook. Yang talked to her about coming to live with him in Missouri and told her he owned his own business. The minor victim went to her mother’s house to retrieve some clothing on Dec. 6, 2013, and while there, she asked Yang to come get her. She snuck out and met with Yang in front of her mother’s house the next day, and they drove to a hotel in Neosho, Mo., where they engaged in unprotected sex.
Under federal statutes, Yang 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 $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, 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."St. Joseph Man, Two California Men Indicted for Synthetic Marijuana ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man is among three defendants indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic cannabinoid products, also known as K2.
Shakeel Kahn, 36, of St. Joseph, Mohammed Saleem, 40, of Diamond Back, Calif., and Asif Saddiq, 56, of Fullerton, Calif., were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on April 30, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Kahn, Saleem and Saddiq participated in a conspiracy to distribute synthetic cannabinoid products, a controlled substance analogue, from March 1, 2011, to April 30, 2014.
Kahn and Saleem are also charged together in one count of aiding and abetting each other to distribute synthetic marijuana labeled as “7H,” “777” and “Mr. Nice Guy.”
Kahn and Saleem are also charged together in a money-laundering conspiracy in February 2014. The indictment alleges that Kahn and Saleem conducted financial transactions that involved the proceeds of the alleged drug-trafficking conspiracy. Kahn allegedly directed a confidential source to send him the $8,750 payment for 3,500 units of synthetic cannabinoids to the bank account of business listed as a wholesale clothing company with a mailing address in California. This address has been identified as the mailing address for Saleem’s secretary/manager. Khan is not a signer on the account. A withdrawal of $7,500 in cash was made at a bank branch in California on the same day.
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 Joseph M. Marquez. It was investigated by the Drug Enforcement Administration.St. Joseph Man, Two California Men Indicted for Synthetic Marijuana ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man is among three defendants indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic cannabinoid products, also known as K2.
Shakeel Khan, 36, of St. Joseph, Mohammed Saleem, 40, of Diamond Back, Calif., and Asif Saddiq, 56, of Fullerton, Calif., were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on April 30, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Khan, Saleem and Saddiq participated in a conspiracy to distribute synthetic cannabinoid products, a controlled substance analogue, from March 1, 2011, to April 30, 2014.
Khan and Saleem are also charged together in one count of aiding and abetting each other to distribute synthetic marijuana labeled as “7H,” “777” and “Mr. Nice Guy.”
Khan and Saleem are also charged together in a money-laundering conspiracy in February 2014. The indictment alleges that Khan and Saleem conducted financial transactions that involved the proceeds of the alleged drug-trafficking conspiracy. Khan allegedly directed a confidential source to send him the $8,750 payment for 3,500 units of synthetic cannabinoids to the bank account of business listed as a wholesale clothing company with a mailing address in California. This address has been identified as the mailing address for Saleem’s secretary/manager. Khan is not a signer on the account. A withdrawal of $7,500 in cash was made at a bank branch in California on the same day.
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 Joseph M. Marquez. It was investigated by the Drug Enforcement Administration.Oregon Man Indicted for Traveling to MO to Engage in Sex with a MinorRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a LaGrande, Ore., man was indicted by a federal grand jury today for traveling across states lines to Missouri to engage in illicit sex with a minor.
Abdul Lamont Gamble, 39, of LaGrande, Ore., was charged in a single-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Gamble on April 10, 2014.
The indictment alleges that Gamble traveled from Oregon to Missouri between March 25 and April 9, 2014, to engage in illicit sexual conduct with a minor and a commercial sex act with a minor.
According to the affidavit filed in support of the original criminal complaint, Gamble contacted an undercover law enforcement officer through a Website on Oct. 28, 2013, and offered to have sex with her fictitious 11-year-old and 15-year-old daughters. He allegedly continued to communicate with the undercover officer sporadically, via e-mail, texts and phone calls, until late March 2014.
Gamble’s communications allegedly included explicit descriptions of the sexual acts he intended to perform on and with the two minor girls, as well as an agreement to pay $250 in exchange for his sexual activities with the two minor girls. Gamble traveled to Kansas City, Mo., on a Greyhound bus, the affidavit says, and arrived on April 9, 2014. The undercover officer met him at the bus station. According to the affidavit, Gamble paid the undercover officer $100 upfront and stated he would pay the remaining $150 after he completed the sex acts with the minor girls. Gamble also reconfirmed the sexual acts he intended on performing on and with the two minor girls.
They stopped at a CVS on Independence Avenue. As he exited the car and began to approach the CVS, police officers arrested Gamble.
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 Patrick D. Daly. It was investigated by the Kansas City, 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."KC Man Indicted for Maryville Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for robbing a Maryville, Mo., bank.
Ronald David Brown, Jr., 39, of Kansas City, was charged in a single-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Brown stole $1,480 from Bank Midwest, 1016 S. Main St., Maryville, on Nov. 13, 2013.
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 Christina Y. Tabor. It was investigated by the FBI and the Maryville, Mo., Police Department.Three Men Plead Guilty to Heroin Trafficking that led to OverdoseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three men have pleaded guilty to their roles in a heroin-trafficking conspiracy in Columbia, Mo.
Toney Antwane Jones, also known as “Tuffy,” 34, of Columbia, pleaded guilty today before U.S. Magistrate Judge Matt J. Whitworth. His brother, Gregory Lamont Townsend, also known as “LG,” 31, of Columbia, pleaded guilty to his role in the conspiracy on Thursday, April 24, 2014. Terrell Deandre Williams, 36, of St. Louis, Mo., pleaded guilty to his role in the conspiracy on Monday, April 28, 2014.
According to court documents, Williams provided heroin to Townsend and Jones to distribute in Columbia.
Columbia police officers were called to a local motel on May 8, 2012, in response to an apparent heroin overdose. A woman reportedly was not breathing and had no pulse. Someone in a neighboring room initiated CPR, and when emergency medical technicians arrived, the woman had a faint pulse. Later that day, the woman told officers that she and her fiancé had purchased heroin from Townsend. They met Jones, who had been sent by Townsend to complete the $30 heroin transaction, at another motel. Then they returned to their motel room, where the woman ingested half the heroin and overdosed.
Officers conducted surveillance at the motel where Jones was staying. Two individuals were stopped after leaving the motel, and both stated they had gone to the motel to purchase heroin from Townsend. The next day, May 9, 2012, officers executed a search warrant at the hotel. They found Jones in the hotel bathroom, standing in front of the sink where nine grams of heroin was recovered.
The following day, on May 10, 2012, officers arrested Townsend. Townsend attempted to flee from officers but was apprehended after a brief foot chase.
Further investigation led officers to suspect that Williams was the source of Townsend’s heroin. Investigators contacted a cooperating source, who agreed to arrange a heroin transaction with Williams. Between May 10 and May 12, 2012, the cooperating source placed a series of telephone calls to Williams to arrange a heroin transaction. During the calls, Williams agreed to sell two ounces of heroin to the cooperating source’s girlfriend for $4,800. She went to St. Louis on May 12, 2012, accompanied by officers, to meet with Williams and complete the transaction. She was provided with $4,800 and equipped with a recorder. When she arrived at the location, Williams walked out of the building and met her at her vehicle. He handed her a bag that contained 46.7 grams of heroin and she paid him $4,800.
Under federal statutes, each of the defendants is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Columbia, Mo., Police Department.Former Waldo Chiropractor Pleads Guilty to $3 Million Medicare FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a Kansas City, Mo., clinic pleaded guilty in federal court today to a $3 million Medicare fraud scheme.
Michael Kelly Miller, 59, of Temple Terrace, Fla., formerly the owner of Waldo Rehabilitation Health & Wellness in Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to a federal information that charges him with one count of health care fraud.
Miller, a licensed chiropractor, was the owner of Brookside Health Services, doing business as Waldo Rehabilitation Health & Wellness at 7337 Broadway, Kansas City, during the time period of February 2009 to December 2011. He currently practices at Miller Clinic for Optimal Health in Temple Terrace.
By pleading guilty today, Miller admitted that he submitted claims to Medicare for nerve block injections that were false and fraudulent because the nerve block injections were not medically indicated and necessary for the patients’ health per Medicare coverage guidelines. Between February 2009 and December 2011, the clinic billed Medicare approximately $3,083,454, and Medicare paid the clinic approximately $879,582 for nerve block injections.
Beginning in 2009, the clinic shifted its focus from primarily providing chiropractic services to purportedly diagnosing and treating neuropathy. This shift in focus was due, in part, to information Miller received from a third party promoting a new, “cutting edge” treatment for neuropathy, which included nerve block injections. At the time, Medicare had no specific coverage guidelines regarding the use of nerve block injections for peripheral neuropathy. Miller did not investigate or inquire whether Medicare considered nerve block injections to be medically indicated and necessary for patients experiencing neuropathy.
Miller’s patients typically received anodyne infrared light and electrical stimulation therapies two or three times per week for four to eight weeks. The clinic’s purported treatment of neuropathy was not supported by medical research studies or peer-reviewed medical publications, and would be considered an experimental or investigational treatment or alternative medicine.
During this time, most of the clinic’s patients were Medicare beneficiaries, and most of the clinic’s revenues were received from Medicare. Medicare will not cover experimental or investigational procedures and treatments or alternative medicine. Miller was aware of these Medicare requirements.
Based on Miller’s experience with Medicare, he knew and expected that the clinic would be paid less than the full amount sought in the claims submitted. For example, for nerve block injections, the clinic was paid approximately 29 percent of the claims submitted. Miller estimates that the reasonably foreseeable pecuniary harm and intended loss with respect to nerve block injections was more than $1 million but not more than $2.5 million.
Under the terms of today’s plea agreement, Miller will be sentenced to at least 15 months, and as much as 21 months, in federal prison. Miller must pay approximately $879,582 in restitution to Medicare, with the exact amount to be determined prior to sentencing. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Diabetic Neuropathy
Diabetic neuropathy is a type of nerve damage resulting from diabetes, often damaging nerves in the legs and feet. Diabetic neuropathy is usually diagnosed based on the patient’s symptoms, medical history, and physical examination. While presently there is no medically recognized cure, treatment usually focuses on slowing the disease’s progression, controlling blood glucose, relieving pain, and restoring function. Type II diabetes, one of the underlying causes of neuropathy, is a manageable disease with medicine and dietary change.
This case is being prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Daniel M. Nelson. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.Liberty Couple Sentenced for $2.7 Million Embezzlement, Check Kiting Scheme to Fund Gambling, Lavish SpendingRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., husband and wife were sentenced in federal court today for a nearly $2.7 million embezzlement and check kiting scheme and for filing a false tax return.
Laura Dejong, 55, and her husband, Craig Dejong, 56, both of Liberty, were sentenced in separate appearances before U.S. District Judge Dean Whipple. Laura Dejong was sentenced to 10 years in federal prison without parole. She was taken into custody immediately after today’s hearing. Craig Dejong was sentenced to two years and six months in federal prison without parole. The court also ordered the Dejongs to pay a total of $3,300,718 in restitution to their victims, including $2,679,227 to Kansas City Screw Products, Inc., $482,711 to the Internal Revenue Service and $138,780 to two financial institutions.
On June 18, 2013, Laura Dejong pleaded guilty to one count of mail fraud and both of the Dejongs pleaded guilty to one count of filing a false tax return.
Laura Dejong admitted that she embezzled $2,679,227 from her employer, Kansas City Screw Products, Inc., from January 2003 to November 2011. Kansas City Screw Products is a family-owned and -operated metal fabrication business in Kansas City. Laura Dejong, who was employed as a secretary and bookkeeper for approximately 23 years, forged checks drawn on two company bank accounts.
Laura Dejong also engaged in a check kiting scheme between the company’s two banks in order to falsely inflate the company’s bank account balances, thereby increasing the amount of money she could embezzle. Her check kiting began in late June 2011. The total amount of checks written by Laura Dejong to cause the check kite increased from $44,000 in June 2011 to $847,000 in November 2011. The total loss from the check kite to Central Bank was $97,015.
According to court documents, significant gambling activity was identified for the Dejongs, totaling approximately $4.5 million from January 2002 to December 2011. The majority of the Dejongs’ gambling was at slot machines.
Records indicate that the Dejongs took at least eight cruises and spent more than $100,000 on payments for the cruises, vacations and airfare between 2005 and 2011. During the time of the embezzlement scheme, according to court documents, the Dejongs used the stolen money to purchase a 2007 Chevrolet Tahoe, a 2009 Honda Accord, a 1997 Crownline boat (20-foot fiberglass runabout), a 1997 Prestige boat trailer, a 1985 Chevrolet RV/motor-home (now a KC Chiefs party bus), a 2008 Jayco travel trailer, four Ameriprise Brokerage accounts; four Kansas Speedway season tickets (for Passholder seats, parking passes, and track passes), four Kansas City Chiefs Club Level season tickets and parking passes, membership to the Chiefs Wolfpack Club, an exclusive members-only facility, and their residence.
As part of their pleas, the Dejongs signed a stipulation forfeiting their home in Liberty and all of the above-listed property. The forfeited funds will be used to provide restitution to the victims of their crimes.
The Dejongs admitted that they filed joint tax returns for tax years 2005-2010 but did not declare any of the embezzled money as income. During this time, Laura Dejong’s gross annual salary at Kansas City Screw Products ranged from $22,752 to $33,333. Craig Dejong was unemployed for four years and listed no income for the two years in which he claimed to be employed as a computer programmer.
As a result of filing false tax returns in those six years, the Dejongs owe the Internal Revenue Service a total of approximately $482,711.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI and IRS-Criminal Investigation.CEO Pleads Guilty to Embezzling at least $208,000 from KC CompanyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former CFO/CEO of a Kansas City, Mo., company has pleaded guilty in federal court to a wire fraud scheme in which he embezzled at least $208,000 and as much as $338,221.
James Anthony Kilkenny, 50, of Kansas City, pleaded guilty on Wednesday, April 23, 2014, before U.S. District Judge Dean Whipple to one count of wire fraud.
Kilkenny was an employee of Waechtersbach USA, Inc. from December 1998 until his termination in April 2012, at which time he was the CFO/CEO. Waechtersbach USA, located at 4201 N.E. 34th Street, Kansas City, Mo., is a distributor/vendor that purchases products from the German and Asian companies to distribute to U.S. retailers. Waechtersbach USA’s parent company is located in Germany.
By pleading guilty, Kilkenny admitted that he engaged in a nine-year-long, multi-pronged plan to embezzle from Waechtersbach between 2003 and 2012. Kilkenny admitted that, during this time, he overpaid his own salary by $133,592. In 2006, Waechtersbach management notified Kilkenny that he was required to take a pay cut from $135,000 to $115,000 because of company-wide cutbacks. Starting the following year on Jan. 15, 2007, however, Kilkenny began increasing his salary and overpaying himself without the company’s knowledge. He accomplished this by paying himself an extra $35,000 that was broken down into two accounts and disguised as “warehouse” and “office” expenses.
Kilkenny also admitted that he used company funds to pay back loans he had taken against his 401K account ($75,169 loss) and issued unauthorized company checks to himself and others ($29,783 loss). The government contends that Kilkenny also used company funds to pay for his dependents’ health insurance without Waechtersbach’s knowledge or express authorization ($12,041 loss) and used the company’s travel credit card for personal, local expenses ($87,633 loss).
Kilkenny admitted the loss was at least $208,762; the government believes the total amount of loss was $338,221. Under the terms of today’s plea agreement, Kilkenny must forfeit to the government a money judgment of at least $208,825, up to $400,000, depending on the loss amount determined by the court.
As CFO/CEO, Kilkenny was the person tasked with reporting Waechtersbach’s financials to the company’s owner. His embezzlement came to light when the owner of the company was notified by the U.S. Customs Department that the company had received an $80,000 import tax refund. The owner became suspicious and came to Kansas City to investigate. An internal investigation revealed that Kilkenny received the $80,000 refund but reported that the refund was for only $8,000. Kilkenny instructed the employees in the Kansas City office to lie about the amount if asked. The company then began investigating all of Kilkenny’s spending, which led to the discovery of over $200,000 that Kilkenney had embezzled.
Under federal statutes, Kilkenny is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the Kansas City, Mo., Police Department.Russellville Man Indicted for Illegal Firearms, MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Russellville, Mo., man was indicted by a federal grand jury today for being an illegal alien in possession of firearms and for possessing methamphetamine with the intent to distribute.
Emmanuel Guillen, 21, a citizen of Mexico residing in Russellville, was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Guillen, an illegal alien, was in possession of 21 firearms on March 20, 2014. Guillen is also charged with possessing methamphetamine with the intent to distribute.
Guillen was arrested on March 20, 2014. Law enforcement officers executed a search warrant at Guillen’s residence on that day. Officers found methamphetamine in a white box on the shelf of a bedroom closet and in a vehicle parked in the driveway. They found 21 firearms, including semi-automatic pistols, shotguns and rifles, in the house and in vehicles. Officers also found $2,504 in Guillen’s wallet and $13,168 in a safe in the bedroom closet.
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 Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group) and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Moberly Man Indicted for CounterfeitingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Moberly, Mo., man was indicted by a federal grand jury today for possessing and passing counterfeit $50 bills.
Kevin Glenn McCuiston, 37, of Moberly, was charged in a two-count indictment returned by a federal grand jury in Jefferson City. Today’s superseding indictment replaces a Feb. 12, 2014, federal indictment that contained one count of possessing counterfeit $50 bills.
Today’s indictment contains the original allegation that McCuiston was in possession of 49 counterfeit $50 bills on Dec. 6, 2013. McCuiston is also charged with passing four counterfeit $50 bills and five counterfeit $10 bills on Dec. 2, 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 Lauren Kummerer. It was investigated by the U.S. Secret Service and the Missouri State Highway Patrol.Kansas Man Sentenced for Attempted Bank Robbery after Shooting, High-speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas man was sentenced in federal court today for an attempted bank robbery in Trimble, Mo., that was foiled when he was shot by a bank employee before leading law enforcement officers on a high-speed chase.
Michael S. Oliva, 36, of Kansas, was sentenced by U.S. District Judge Gary A. Fenner to five years and three months in federal prison without parole.
On Nov. 25, 2014, Oliva pleaded guilty to attempted bank robbery.
Oliva entered First Security Bank, 202 U.S. Hwy. 169, Trimble, on March 1, 2013. Oliva pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee and ordered her to give him the money in her teller drawer. According to court documents, the employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
Another bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva, striking him in the jaw. Oliva fled from the bank, jumped in his car and left; no money was taken during the attempted robbery.
According to court documents, after Oliva left the bank, the first employee got up from the floor and saw him staggering behind a nearby building. She called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
Trimble police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Trimble, Mo., Police Department, the Clinton County, Mo., Sheriff’s Department and the FBI.KCK 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, Kan., man was sentenced in federal court today for illegally possessing two firearms.
Gregory E. Mitchell, 41, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Mitchell was sentenced as an armed career criminal due to his prior felony convictions.
On Dec. 10, 2013, Mitchell pleaded guilty to being a felon in possession of firearms. Mitchell admitted that he was in possession of a Smith & Wesson .38-caliber revolver and a Taurus .38-caliber revolver with an obliterated serial number. Mitchell also pleaded guilty to being in possession of a firearm with an obliterated serial number.
Mitchell was arrested on July 8, 2013, when his vehicle was stopped by Kansas City police officers. Mitchell was wearing a shoulder holster that contained the loaded Taurus revolver. The Smith & Wesson revolver was found in his vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mitchell has two prior felony convictions for burglary and two prior felony convictions for robbery.
This case is being prosecuted by Assistant U.S. Attorney Justin Davids. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.Former Director Pleads Guilty to Stealing $300,000 from Home for Disabled PersonsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of a program that provided a home for disabled persons in Higginsville, Mo., pleaded guilty in federal court today to embezzling more than $300,000 from the organization.
Terri Arlene Marr, 51, of Warrensburg, pleaded guilty before U.S. District Judge Dean Whipple to two counts of theft in connection with a health care benefit program.
Marr was the director of the Progressive Alternative Living, Inc. (PAL) from 1991 through 2013. PAL is an organization that operates a home in Higginsville for disabled persons in need of assistance. PAL receives reimbursement for many of these individuals from Medicaid. Marr was responsible for keeping strict and accurate accounts of all money received by and disbursed for and on behalf of PAL.
By pleading guilty today, Marr admitted that she used PAL credit cards to pay personal expenses. Marr also made payments on her personal credit cards out of the PAL bank account from 2001 through 2013.
Marr also admitted that, from 2001 through 2013, she issued payroll checks to an individual who was not an employee of PAL. These payroll checks total approximately $186,038.
Under the terms of today’s plea agreement, Marr must pay restitution to PAL for the total amount of the loss, not limited to the amounts set forth in the indictment and the two counts of conviction. If the parties are unable to agree to a loss figure, the court will decide the matter by a preponderance of the evidence.
Marr must forfeit to the government a money judgment of $327,544, which represents the proceeds of the offenses.
Under federal statutes, Marr is subject to a sentence of up to 20 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 Higginsville, Mo., Police Department.
KC Man Pleads Guilty to Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to the armed robbery of Bank of America nearly seven years ago.
Marlon Jaye Larry, 40, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to the charges contained in a Feb. 4, 2008, federal indictment. Larry was a fugitive from justice until his arrest in Pennsylvania in March 2013.
By pleading guilty today, Larry admitted that he used a handgun to steal $38,938 from Bank of America, 10731 State Line Rd., Kansas City, on June 27, 2007. Larry, wearing a disguise, entered Bank of America just after 8 a.m. that day. According to court records, Larry ran up to the bank manager as he approached the outside front door of the bank. The manager tried to push Larry away, but Larry struck him in the head with a handgun. Larry then told the employees inside the bank to get on the floor and said, "You better not hit any alarms or I'll kill you all."
Larry brandished a loaded handgun at a teller window and ordered bank employees to get on the floor. He ordered the employees to open the bank’s cash vault, but they were unable to do so. The cash vault locked and could not be opened. Larry then ordered them to place money from their teller drawers into a black trash bag he had brought into the bank. Larry started to leave the bank and then came back and asked for car keys. One of the bank employees gave Larry the keys to his car.
Later that day, police officer searched the residence of a female acquaintance of Larry’s. They found a black plastic trash bag, which contained $28,609 stolen from Bank of America, in the garage. Police also found a Taurus 9mm handgun in a box next to the trash bag.
Larry pleaded guilty today to one count of armed bank robbery and one count of using a firearm in relation to a crime of violence.
Under federal statutes, Larry is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $250,000, on the armed bank robbery conviction. Under the terms of today’s plea agreement, Larry will be sentenced to five years in federal prison without parole, to be served consecutively, on the firearm conviction. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo, Police Department.St. Robert Man Sentenced for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Robert, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin in Pulaski County, Mo.
Robert E. Peetz, 27, of St. Robert, was sentenced by U.S. Chief District Judge Greg Kays on Tuesday, April 15, 2014, to seven years in federal prison without parole.
On Oct. 9, 2012, Peetz pleaded guilty to participating in a conspiracy to distribute heroin. Peetz admitted that he began selling heroin in the fall of 2010. Federal agents used a confidential source to make three undercover purchases of heroin from Peetz in August 2011. Peetz estimated that he had sold between 5 and 6 ounces of heroin (which is in excess of 100 grams).
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, the Pulaski County, Mo., Sheriff’s Department, the St. Robert, Mo., Police Department, the Waynesville, Mo., Police Department and the Lake Area Narcotics Enforcement Group.
Two Defendants Sentenced for $100 Million Nationwide Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Alabama man and a California woman were sentenced in federal court today, in separate but related cases, for their roles in a tax fraud conspiracy that attempted to receive nearly $100 million in fraudulent refunds from the IRS. Co-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.
Billy Ray Hall, 75, of Newton, Ala., was sentenced by U.S. District Judge Brian C. Wimes to three years and one month in federal prison without parole. The court also ordered Hall to pay $1,141,062 in restitution.
Maria Haro Campos, 43, of Vista, Calif., was sentenced by U.S. District Judge Howard F. Sachs to 20 months in federal prison without parole.
Conspirators prepared and filed a total of 284 fraudulent tax returns from July 1, 2008, to Sept. 21, 2011. Each of the returns contained false claims that the taxpayer listed was due a refund due to over-withholding of taxes, based on fictitious forms 1099-OID. In actuality, the clients had not received interest income from the banks and lenders listed on their Forms 1099, nor had any money been over-withheld. Conspirators claimed that a total of $96 million dollars in fraudulent tax refunds were due. The IRS mistakenly paid out $3.5 million on these fraudulent claims.
On Dec. 18, 2013, Hall pleaded guilty to participating in a conspiracy to defraud the United States by filing fraudulent tax returns. Hall admitted that he was a regional manager for a fraudulent Form 1099-OID scheme led by co-defendant Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo.
Hall introduced people to Poynter and encouraged them to participate in the OID process, either as a tax filer or as a branch manager. He also gathered information from some filers and provided it to Poynter. As Poynter’s regional manager, Hall had at least four branch managers beneath him. Hall had at least 20 clients of his own, resulting in at least 51 individual income tax returns claiming $14.28 million in fraudulent refunds. Of those, the IRS paid out $1,141,062 in fraudulent refunds.
Poynter and Hall conducted a training seminar in December 2008 at the Doubletree Hotel in Atlanta, Ga.. At the seminar, Poynter gave a presentation outlining his “OID process,” during which he pointed out that the IRS would issue refunds even if the name listed on the OID form was Spongebob Squarepants or Spiderman. Poynter told attendees they would use a rented office rather than process the OID returns at home to avoid their homes being raided by the FBI. He talked about attracting attention from IRS criminal investigators, and he provided pointers on how to avoid that outcome. Poynter also joked that his going to prison was a possibility. Despite hearing these statements, Hall continued to be involved. Hall sponsored other meetings where Poynter provided information to third parties concerning the OID process. Hall spoke about OIDs at another seminar with Poynter in Monroe, La. Hall admits that he ignored the many red flags that Poynter’s process was too good to be true and was in fact illegal.
On April 7, 2011, Campos pleaded guilty to her role in the conspiracy. Campos acted as the southern California branch manager for Poynter. She recruited new clients and facilitated their 1099-OID processes. She collected tax information and up-front fees, which she forwarded to Poynter for processing.
Campos furthered the conspiracy by aiding two of her clients in obtaining a total of $1,207,349 in fraudulent refunds. Campos unsuccessfully attempted to obtain refunds in the amount of at least $21 million for other clients. In total, Campos introduced at least 10 individuals or married couples to the conspiracy, including one couple who received a fraudulent refund of $805,749.
Campos traveled to Kansas City, Mo., from California on several occasions to meet with Poynter for training and to deliver records. Campos knew that Poynter’s scheme was fraudulent, and was intended to defraud the U.S. Treasury of millions of dollars. When interviewed by law enforcement, Campos admitted that she was aware of problems caused by Poynter’s 1099-OID scheme and that she continued to participate in the conspiracy even after she knew it was illegal.
Poynter was sentenced on March 13, 2014, to 13 years in federal prison without parole after pleading guilty to his role in the conspiracy and to filing a fraudulent tax return. The court also ordered Poynter to pay $951,930 in restitution to the government.
Hall and Campos are among 12 defendants who have pleaded guilty, including Kristi Jones, 41, of Riverside, Mo.; Shirley Oyer, 72, of Overland Park, Kan.; Jennifer Wilson, 37, of Cumming, Ga.; Mark J. Murray, 52, of Newton, Ala.; John V. Perdido, 58, of Temecula, Calif.; Earl Lee Davis, 55, of Monroe, La.; Robert E. Morris, 68, of Rocklin, Calif.; and Karen A. Olson, 42, of Wood Dale, Ill. Marian Fine-Kennedy, 36, of Eugene, Ore., pleaded guilty in a separate but related case.
In addition, Nkosi Gray, 40, of New Fairfield, Conn., and Kimberly Johnson, 43, of Chickamauga, Ga., were each convicted at trial of filing false claims for a tax refund. Gray and Johnson each filed fraudulent tax returns that falsely claimed refunds due to over-withholding of taxes. Gray received a $278,874 refund and Johnson filed a claim for a $61,959 refund on behalf of another person.
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. Bond holders then file these OID forms with the IRS, along with their income tax forms.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators, working with their branch managers, 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 income from bond proceeds and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ OID bond 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 – any bond income. No bond payer had issued any 1099-OID forms. Instead, the bond 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 bond interest.
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.
Ozark Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three south Missouri residents were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine.
Noe Moreno-Malagon, 36, a citizen of Mexico residing in Ozark, Mo., Rita J. Vera, 35, of Monett, Mo., and Paul E. Allen, 58, of Purdy, Mo., were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Moreno-Malagon was sentenced to 15 years in federal prison without parole, which must be served consecutively to his prison sentence in an unrelated state case. Moreno-Malagon must also forfeit to the government $32,000 and four firearms (with miscellaneous ammunition) that were seized by law enforcement officers.
Vera was sentenced to five years in federal prison without parole. Allen was sentenced to seven years in federal prison without parole.
On Nov. 15, 2013, Moreno-Malagon pleaded guilty to leading a multi-pound methamphetamine conspiracy operating in the Springfield area but also covering Polk, Christian and Taney Counties. The case began when couriers were intercepted in New Mexico and Texas with 4-kilogram loads of methamphetamine. The couriers indicated that the methamphetamine was going to Springfield. The federal investigation included controlled buys and additional seizures of methamphetamine, firearms and cash.
On Dec. 3, 2012, a search warrant was executed in Morrisville, Mo. During the search, DEA agents located 338.1 grams of pure methamphetamine, as well as a handgun and a rifle. The DEA also conducted a search at a Springfield residence believed to be a stash house for the organization. At that location, agents found 123.6 grams of pure methamphetamine.
Moreno-Malagon supplied Vera and Allen with methamphetamine. On Feb. 13, 2012, federal law enforcement agents seized 362 grams of pure methamphetamine from Allen in Ozark, Mo. Additionally, on June 22, 2012, 224.4 grams of pure methamphetamine was seized from another co-defendant. In addition to the seizures, two controlled buys were made on March 27, 2012 and April 12, 2012. In March, 125.1 grams of pure methamphetamine was purchased, and in April, 117.5 grams of pure methamphetamine was purchased.
On Sept. 3, 2013, Allen pleaded guilty to his role in the drug-trafficking conspiracy. Vera pleaded guilty to her role in the conspiracy on June 20, 2013.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Missouri State Highway Patrol, and task force officers from the Greene County, Mo., Sheriff’s Department, the Christian County, Mo., Sheriff’s Department, the Ozark, Mo., Police Department, the Springfield, Mo., Police Department, the South Central Drug Task Force and COMET (the Combined Ozarks Multijurisdictional Enforcement Team).Mansfield Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mansfield, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Mathew Taylor Cox, 49, of Mansfield, was sentenced by U.S. Chief District Judge Greg Kays to eight years in federal prison without parole. The court also ordered Cox to forfeit to the government a desktop computer, two computer hard drives and 938 CDs and DVDs that contain images and videos of child pornography.
On Sept. 4, 2013, Cox pleaded guilty to one count of receiving and distributing child pornography (between May 1, 2008, and March 31, 2011) and one count of possessing child pornography (on Dec. 20, 2011).
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the Nixa, Mo., Police Department and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Business Manager Sentenced for Embezzling $170,000 from Brookside Physician OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former business manager for a Brookside physician’s office was sentenced in federal court today for a fraud scheme in which she embezzled $170,000 from her employer.
Eileen Kisner, also known as “Anne,” 57, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Kisner to pay $170,232 in restitution.
On Nov. 20, 2013, Kisner pleaded guilty to mail fraud. Kisner was the business manager at Brookside Family Medicine from 2002 to 2010. During that time, she used her employer’s credit cards for her personal use and benefit when she was not authorized to do so. Kisner stole approximately $170,232 from Brookside over eight years. Kisner created fraudulent entries in the business ledger to provide to the company’s accountant to avoid detection of her embezzlement.
As a result her crimes, Dr. Darren Killen had to declare bankruptcy and sell his business. Shortly after she was fired from her position at Brookside, Kisner left the United States and went to Europe for almost three years (during which time she worked as a nanny in the Netherlands for six months then went to work for LED in the Netherlands). She was arrested as she deplaned in Philadelphia, Penn., on Feb. 15, 2013, having been detected by the Transportation and Safety Administration (TSA) in a records comparison check between Europe and the United States while her plane was in flight.
According to court documents, Kisner charged items at Southwest Airlines, Northwest Airlines, Tan World, Halls, Nordstroms, Ann Taylor, Price Chopper, TJ Maxx, Costco, Talbot’s and Pottery Barn. In addition, she charged items at Home Depot, Target, Woodland Shutters (over $4,000), Z Gallerie, Wal-Mart and Polo/Ralph Lauren. The balances on the credit cards were paid by funds from the company’s bank account. Kisner also paid for personal expenses by mailing checks to American Family Insurance (car insurance), GMAC (Hummer car payments) and Visa from Brookside’s bank account for her own personal use and benefit.
Kisner applied for at least two credit cards for Brookside, according to court documents, which she had issued in her husband’s name. Those credit cards were used to pay her husband’s personal expenses. Kisner also paid for her home gas bill several times with Brookside money. Kisner did so by having her personal address listed with Brookside’s name above the address. Kisner would then attach her personal gas bill to Brookside’s gas bill and pay both bills with one of Brookside’s checks.
Kisner pleaded guilty to a mail fraud count that charges her with mailing a $224 check from the company’s account to pay for her personal car insurance on a family car, a Sierra. Kisner was not authorized to pay funds from Brookside’s bank account for the car insurance.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.West Plains Man Pleads Guilty to Receiving, Distributing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
James A. Harrison, 53, of West Plains, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 26, 2014, federal indictment.
By pleading guilty today, Harrison admitted that he downloaded child pornography from Web sites, and that he received and distributed child pornography through peer-to-peer file-sharing networks.
A Missouri State Highway Patrol trooper was conducting an undercover operation on Jan. 28, 2013, when he identified Harrison’s computer as sharing images of child pornography over the Internet through a peer-to-peer file-sharing network. The next day, the trooper downloaded a video of child pornography from Harrison’s computer. On Feb. 26, 2013, Harrison’s computer was still connected to the file-sharing network and had 10 files available for sharing that were known child pornography files. Law enforcement officers executed a search warrant at Harrison’s residence and seized a laptop computer, a desktop computer, a hard drive and various digital media storage devices.
Investigators examined Harrison’s computers and digital media storage devices and found 474 child pornography videos and 560 images of child pornography (that ranged in age from three years old to 13-14 years old).
Under federal statutes, Harrison is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Missouri State Highway Patrol, the Joplin, Mo., Police Department, the Cassville, Mo., Police Department and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Tennessee Sex Offender Sentenced to 27 Years for Enticing a Minor for Sex via the InternetRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Tennessee man, who is a registered sex offender, has been sentenced in federal court for using the Internet and a cell phone to attempt to entice a minor to engage in sexual activity.
John Richard Fortenberry, Jr., 38, of Murfreesboro, Tenn., was sentenced by U.S. District Judge Greg Kays on Wednesday, April 9, 2014, to 27 years in federal prison without parole.
Fortenberry, who pleaded guilty on Nov. 26, 2013, was a registered sex offender in Tennessee at the time of the offense. He was previously convicted of indecent liberties with a child.
In January 2013, an acquaintance of Fortenberry contacted the FBI to report that he was in contact via Facebook with a 12-year-old girl in the Kansas City, Mo., area. Their Facebook messages indicated that Fortenberry was planning to travel to Kansas City to meet the victim in person and engage in sexual activity.
According to court documents, the federal investigation established that Fortenberry had been in constant and continual contact with the minor victim via Skype, Facebook, e-mail and phone since she was 11 years old. Fortenberry and the minor victim would mutually masturbate and watch pornography together while talking on Skype.
FBI agents found approximately 1,200 text messages between Fortenberry and the minor victim, dating back to November of 2012, on the victim’s cell phone. Agents also discovered a video of Fortenberry masturbating and nude photographs of the victim on the cell phone.
Fortenberry was controlling, threatening, and coerced the minor victim, according to court documents. The minor victim stated that Fortenberry, who had access to her Facebook account, deleted any of her friends whom he thought were a “threat.” The minor victim also reported that Fortenberry controlled her activity on Facebook and threatened her to the point that she was scared. He threatened to commit suicide if the minor victim did not follow his orders to reformat her computer in order to hide evidence from law enforcement.
After Fortenberry became aware of the investigation, he not only coerced the victim into reformatting her computer, but he reformatted his own hard drive to hide evidence of the crime.
After Fortenberry was arrested and incarcerated he made numerous attempts to contact the victim. According to court documents, law enforcement officers obtained letters from Fortenberry’s mother that were written and sent to her by Fortenberry. In these letters he instructed his mother to communicate with the minor victim on his behalf, and asked his mother to send him photographs of the victim.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI and the Lee County, N.C., Sheriff’s Department.
Three Iowa Men Indicted for Armed Robbery of Burlington Junction BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Iowa men were indicted by a federal grand jury today for the armed robbery of a Burlington Junction, Mo., bank.
Donald D. Kestner, Jr., 26, and Torrence Joseph O’Neill, also known as “Torry,” 26, both of Mt. Pleasant, Iowa, and Travis Joe Davis, 27, of Fort Dodge, Iowa, were charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Kestner, O’Neill and Davis stole $12,282 from Citizens Bank and Trust, 102 W. Main St., Burlington Junction, Mo., on March 21, 2014.
Kestner, O’Neill and Davis were arrested shortly after the robbery occurred. A Maryville Department of Public Safety officer in an airplane piloted by a citizen spotted the three men walking and they were arrested by the Missouri State Highway Patrol. The vehicle used in the armed bank robbery was discovered hidden among some trees and three men were seen walking away from that vehicle.
Kestner and Davis are also charged with one count of aiding and abetting one another to brandish a firearm during a crime of violence.
Kestner is also charged with being a felon in possession of a firearm. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kestner, who has a prior felony conviction for burglary, allegedly possessed a .45-caliber pistol.
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 Rudolph R. Rhodes, IV. It was investigated by the Nodaway County, Mo., Sheriff’s Department, the Maryville, Mo., Department of Public Safety, the Missouri State Highway Patrol, the Page County, Iowa, Sheriff’s Department and the FBI.KC Truck Driver Sentenced to 30 Years for Transporting a Minor for SexRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for transporting a child victim on a cross-country trip during which he sexually abused that victim and another child victim.
Jesse Luuloa Pier, 42, of Kansas City, was sentenced by U.S. District Judge Greg Kays to 30 years in federal prison without parole.
On Oct. 2, 2013, Pier pleaded guilty to transporting a minor across state lines to engage in criminal sexual activity. Pier – a commercial truck driver – admitted that he transported a minor victim on a cross-country trip with the intent to engage in sexual activity on several occasions between June 1 through 17, 2007.
On June 9, 2007, Pier and the child victim arrived in Elgin, S.C. Pier attended a party in Elgin, where he met a local minor boy. While staying overnight, Pier molested the minor, who informed authorities. Pier was charged in state court, pleaded guilty to criminal sexual conduct with a minor and was sentenced to 13 years in the South Carolina State Department of Corrections. Pier’s 30-year federal sentence will be served consecutively to his state imprisonment.
Pier committed abusive sexual acts on the minor victim in this case on at least two occasions after forcing him to watch a pornographic video.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Abilene, Kan., Police Department and the Elgin, S.C., 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."2014 National Crime Victims' Rights WeekRead the Press Release
KANSAS CITY, Mo. – Gene Porter, Deputy United States Attorney for the Western District of Missouri, presented the Crystal Kipper & Ali Kemp Memorial Award today to Kansas City Police Detective Maggie McGuire for her work on behalf of protecting children, most notably her investigation of convicted Roman Catholic priest Shawn Ratigan and Bishop Robert Finn.
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office and VictimNet, a coalition of victim service providers and others committed to meeting the needs of crime victims in Jackson County, in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme, “30 Years: Restoring the Balance of Justice,” honors the extraordinary achievements we have made on behalf of crime victims since the passage of the Victims of Crime Act in 1984.
Porter presented the Crystal Kipper & Ali Kemp Memorial Award to McGuire in place of U.S. Attorney Tammy Dickinson, who is out of the country. McGuire is a long-time detective with the Kansas City, Mo., Police Department and a former task force officer on the FBI Cyber Crimes Task Force.
Porter praised McGuire’s “untiring and relentless work” in the investigation of Ratigan and Finn.
Ratigan was sentenced to 50 years in federal prison without parole after pleading guilty to four counts of producing child pornography and one count of attempting to produce child pornography over a period of nearly six years. Each of those five counts involved the sexual exploitation of a separate child victim, ranging in age from two years old to 12 years old at the time of the offenses.
Finn was found guilty in state court of failing to inform police about the child pornography found on Ratigan's computer and sentenced to two years of probation. Finn is the first U.S. bishop to be criminally charged for his role as a supervisor of priests. The case is also the first criminal case against a sitting bishop in the child sex abuse scandal in the Catholic Church.
“But for (McGuire’s) work,” Porter said, “multiple victims might not have been identified, a predatory priest might not have been removed and sentenced to the functional equivalent of life in prison, and Robert Finn never would have become the first cleric of his rank in the United States to plead guilty and sustain a criminal conviction for failure to report suspected child abuse.”
McGuire overcame significant obstacles to investigate a unique case, said Porter. “When it becomes clear at the outset of the investigation that the entire hierarchy of a centuries-old religious denomination does not seem willing to recognize that the children depicted in the images are, in fact, victims of child exploitation, nor seem very willing to help establish the identity of the children depicted, and instead are spending millions of dollars on legal counsel in an ill-advised effort to avoid having the priest and bishop accept legal responsibility for their crimes, then you know, as an investigator, that your work is cut out for you.”
Porter noted that McGuire has investigated numerous child exploitation cases that have been successfully prosecuted by the U.S. Attorney’s Office. “She has insured that many dangerous sexual predators were taken off the streets for as long as possible,” Porter said.
“No one could have been better prepared to work on the cases against Father Shawn Ratigan and Bishop Robert Finn,” Porter said of McGuire. “From the very first day, years ago, that she was assigned to work on child exploitation cases, this detective was a pit bull in tracking down and catching child predators. Her dedication and persistence over the years identified and ultimately protected countless child victims in the Western District of Missouri who were portrayed in child pornography images that had been distributed all over the world.”
McGuire’s work on the Ratigan and Finn cases, Porter said, will continue to have a significant impact beyond the courtroom.
“The impetus for the additional programs and victims’ advocates put into place in the Diocese as a result of the Ratigan/Finn debacle, and the additional education of the community on the dangers of child exploitation — especially from the production of child pornography — all owe their origin to this detective’s work, and stand as a more positive legacy and a promise that children in our District will be protected for years to come.
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in protecting children from exploitation. The award was presented to McGuire in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Anna Rhea, Crystal Kipper’s mother, and Roger Kemp, Ali Kemp’s father, participated in today’s presentation.
Today’s event at the Jackson County Courthouse also featured comments from Jackson County Prosecutor Jean Peters Baker and other victim advocates. The event showcased various local victim service providers and a victims’ memorial walk led by the Kansas City Mounted Patrol.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim/Witness Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim/Witness personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim/Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.Former Grandview Woman Sentenced for $158,000 Scheme for False Tax RefundsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Grandview, Mo., woman was sentenced in federal court today for filing a false claim for a federal tax refund as part of a nearly $158,000 scheme.
Kelsey R. Jones, 35, of Houston, Texas (formerly of Grandview), was sentenced by U.S. District Judge Greg Kays to 18 months in federal prison without parole. The court also ordered Jones to pay $102,879 in restitution.
On Oct. 18, 2013, Jones pleaded guilty to making a false claim. Jones admitted that she filed 36 false individual income tax returns on behalf of herself and others, claiming approximately $157,998 in refunds, from February 2009 to January 2011. The $102,879 restitution payment represents the amount of fraudulent tax refunds that were actually paid out by the government.
Jones recruited individuals to file federal income tax returns under their own names. Jones created false and fictitious inflated income and revenue information for the individuals. Jones then used the false information to prepare and file fraudulent federal tax returns electronically with the IRS, which often claimed tax credits, such as the earned income tax credit, to which the individuals were not entitled.
Jones often had a portion of the fraudulent refunds – totaling $17,292 – direct deposited into one of her bank accounts, sometimes without the taxpayers’ knowledge.
This case was prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by IRS-Criminal Investigation.Lee's Summit Sex Offender Sentenced for 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., man who is a registered sex offender was sentenced in federal court today for possessing child pornography.
Thomas A. Shields, 45, of Lee’s Summit, was sentenced by U.S. District Judge Dean Whipple to 10 years in federal prison without parole.
On Sept. 16, 2013, Shields pleaded guilty to one count of possessing child pornography and one count of accessing the Internet with the intent to view child pornography.
According to court documents, Shields was contacted at his residence on March 4, 2011, by law enforcement officials as part of a sex offender compliance sweep. Shields is required to register as a sex offender due to his 1995 felony conviction for sodomy with a victim under the age of 14, for which he was sentenced to eight years in state prison. Officers noticed that he possessed a computer he had not properly registered as required by the state’s Sex Offender Registry and he was arrested.
Shields’s computer was seized, according to court documents, and an examiner located numerous images of child pornography on the computer, including prepubescent children, sadistic conduct, and bondage. The examiner also found evidence of child pornography movies that had been downloaded, viewed, then deleted. The forensic examiner located thousands of images that had been deleted from the computer.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Jackson County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Nevada Man Sentenced for $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., man has been sentenced in federal court for his role in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Lyle E. Tourtillott, 68, of Nevada, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, April 1, 2014, to three years and one month in federal prison without parole. The court also ordered Tourtillott to pay $1,012,000 in restitution.
On Sept. 3, 2013, Tourtillott pleaded guilty to two counts of mail fraud.
In a separate but related case, Bob True Beisly, III, 40, of Nevada, and Ronald Bunn, 45, of Deerfield, Mo., were sentenced on March 20, 2014. Beisly was sentenced to two years and 11 months in federal prison without parole (to run consecutively to his state criminal cases) and ordered to pay $559,616 in restitution to Cargill. Beisly pleaded guilty on Aug. 6, 2013, to one count of wire fraud and one count of mail fraud. Bunn was sentenced to two years and three months in federal prison without parole and ordered to pay $754,564 in restitution to Cargill. Bunn pleaded guilty on Nov. 12, 2013, to two counts of mail fraud.
In a separate but related case, Jeffrey Hobbs, 41, of Exeter, Mo., was sentenced on Nov. 21, 2013, to two years and eight months in federal prison without parole and ordered to pay $2,334,180 in restitution to Cargill. Hobbs pleaded guilty on May 20, 2013, to one count of wire fraud. Each of the defendants will be held jointly and severally liable for the restitution payments.
Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Tourtillott, Beisly and Bunn approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Tourtillott, Beisly and Bunn for the delivery of loads of grain, corn or feed that did not truly exist. Hobbs referred to these as “ghost loads.”
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Tourtillott worked as a driver for his brother, the owner of T&T Grain, which held contracts with Cargill to deliver feed or grain to the Butterfield feed mill. Tourtillott admitted that he received fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Hobbs provided Tourtillott with the fictitious scale ticket, Tourtillott would pay a kickback to Hobbs and later receive payment from Cargill. On several occasions, investigating agents conducted undercover audio and video recordings, which confirmed that Tourtillott worked with Hobbs in obtaining fictitious scale tickets at the grain feed mill.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Bunn owned and operating RB Grain. Bunn was contracted through The Scoular Company to transport shipments of wheat, corn and grain to the Cargill feed mill in Butterfield. Bunn also admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Scoular received a payment from Cargill based on the submission of a fictitious scale ticket, Scoular issued a check to Bunn based on the delivery of wheat, corn or feed that was never delivered.
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million.
These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and the Missouri State Highway Patrol.St. Robert Daughter, Mother Indicted for $1 Million Nigerian Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two St. Robert, Mo., women were indicted by a federal grand jury today for their roles in an international fraud scheme in which victims across the country were tricked into cashing counterfeit money orders.
Lisa Kaye Barwick-Majeski, 53, and her mother, Nancy Madelen Peebles, 73, both of St. Robert, were charged with aiding and abetting others to transfer more than $1 million in counterfeit obligations (postal money orders) in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Barwick-Majeski and Peebles on March 5, 2014.
According to an affidavit filed in support of the original criminal complaint, Barwick-Majeski received counterfeit postal money orders from a source in Nigeria. She allegedly sent the money orders, along with instructions on how to be a secret shopper, to numerous victims across the country. The people who received the counterfeit money orders were to cash them and then wire part of the money back to her, the affidavit says. The money orders were eventually returned against the victims’ account as not negotiable, and the victims were obligated to pay their banks for most of the money they wired to Majeski and others. Barwick-Majeski allegedly kept a portion of the money she received and wired the remaining amount to individuals in Nigeria.
During the course of the investigation, the affidavit says, law enforcement officers seized more than $1.7 million worth of counterfeit postal money orders. Some of those counterfeit money orders were taken directly from Barwick-Majeski or Peebles and some were seized by U.S. Customs and Border Protection or intercepted en route to Barwick-Majeski or Peebles.
In addition to the counterfeit postal money orders, law enforcement officers executed a search warrant at Barwick-Majeski’s residence on Nov. 5, 2013, and seized a parcel that contained 354 counterfeit BMO-Harris Bank cashier’s checks with a total face value of more than $1 million. According to the affidavit, law enforcement officers also seized $406,800 in counterfeit Mid Missouri Credit Union cashier’s checks during the investigation.
A large number of counterfeit money orders have been cashed, the affidavit says, which total at least $212,708 cashed by 137 victims. This remains an active and ongoing investigation.
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 U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Robert, Mo., Police Department.Springfield Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Lonnie Ray Orr, 29, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Monday, March 31, 2014, to eight years in federal prison without parole.
On Nov. 21, 2013, Orr pleaded guilty to receiving and distributing child pornography. Law enforcement officers identified a computer that was using a peer-to-peer file-sharing network to share child pornography over the Internet, which they traced to Orr.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Nevada Sex Offender Pleads Gulty to Child Porn, Faces at least 15 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., man who is a registered sex offender pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
David Lee Knowles, 55, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an April 2, 2013, federal indictment. Knowles is a registered sex offender as a result of his 1997 conviction for sexual assault.
By pleading guilty today, Knowles admitted that he received and distributed child pornography between May 31, 2012, and Jan. 3, 2013. A law enforcement officer was conducting an undercover investigation into the distribution of child pornography with peer-to-peer, file-sharing networks. Knowles’s computer was identified as sharing videos of child pornography over the Internet.
Knowles must forfeit to the government any property used to commit the offense, including an iPad2, a desktop computer, an iPhone and an external hard drive.
Under federal statutes, Knowles is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 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 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."Jury Convicts KC Men of Heroin Trafficking, Resulting in DeathRead 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 convicted in federal court today for their roles in a 10-year long drug-trafficking conspiracy that resulted in the death of one individual and the distribution of more than three kilograms of heroin in the Kansas City area.
Timothy L. Kirlin, also known as “Jim Curlon,” 33, and Matthew Davis, 48, both of Kansas City, were found guilty of all nine counts contained in an Oct. 16, 2013, federal indictment.
Kirlin and Davis were each found guilty of participating in a conspiracy to distribute 1,000 grams or more of heroin, as well as cocaine, from Jan. 1, 2002, to Feb. 3, 2012. Kirlin traveled to Dallas, Texas, to procure wholesale amounts of heroin and other drugs for resale in the Kansas City area. Davis was among the conspirators who received heroin and cocaine from Kirlin and distributed it to others. Ten co-defendants have pleaded guilty and await sentencing.
On March 5, 2002, Kirlin distributed heroin to Joshua Webb, and the use of this heroin by Webb resulted in his death.
Kirlin traveled to Dallas at least once a month to purchase heroin. The usual amount that Kirlin would purchase in Dallas was four ounces of heroin, although he bought more on occasion. He sometimes transported the heroin back to Kansas City by hiding it in his rectum.
Co-defendant Patrick Holmes, 33, of Dallas, was Kirlin’s source for six years. Holmes, who pleaded guilty to his role in the conspiracy, admitted that Kirlin purchased more than three kilograms of cocaine from him for resale in the Kansas City area during the time he was involved in the conspiracy.
Because Kirlin had been shot in the head, he was unable to drive himself, and would ride the bus to Texas and frequently enlist the aid of others in the conspiracy to drive him from place to place.
In addition to the conspiracy, Kirlin was found guilty of being a felon in possession of explosives. Kirlin, who has two prior felony convictions for possession of a controlled substance, was in possession of four sticks of explosives (along with manuals on how to build explosive devices) on Feb. 2, 2012.
Kirlin was also convicted of six counts of distributing heroin and one count of possessing heroin with the intent to distribute. Kirlin must also forfeit to the government $200,000, which represents the proceeds of his illegal drug trafficking, and $1,425 that was seized by law enforcement officers.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for three hours before returning the guilty verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began March 24, 2014.
Under federal statutes, Kirlin is subject to a mandatory sentence of life in federal prison without parole. Davis 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. 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. Attorneys Charles E. Ambrose, Jr., and Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department.Joplin Man Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Vincent Hay, 24, of Joplin, was charged in a two-count indictment returned by a federal grand jury in Springfield. The indictment replaces a federal criminal complaint that was filed against Hay on Feb. 26, 2014.
Today’s indictment alleges that Hay received and distributed child pornography over the Internet between Jan. 10 and Feb. 25, 2014. Hay is also charged with possessing child pornography on Feb. 25, 2014.
According to an affidavit filed in support of the original criminal complaint, a law enforcement officer was conducting an undercover investigation concerning the distribution of child pornography by using peer-to-peer, file-sharing software. Hay’s computer allegedly was identified as sharing videos of child pornography over the Internet. Officers executed a search warrant at Hay’s residence, which is a block away from an elementary school, and seized two computer towers.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Correctional Officer Sentenced for Murder-for-hire SchemeRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former correctional officer at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., has been sentenced in federal court for hiring someone to kill his wife’s ex-husband.
Robert W. Jones, 43, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Monday, March 31, 2014, to six years in federal prison without parole.
On Nov. 13, 2013, Jones pleaded guilty to using a telephone with the intent that a murder be committed for payment. According to court documents, Jones contacted an inmate at the federal medical center while he was employed as a correctional officer. Jones asked him to assist in hiring a hit man to murder his wife’s ex-husband (referred to as “John Doe” in public court documents). Jones was aware that the inmate had been in a leadership position in a drug-trafficking organization, an affidavit says, and had connections to individuals who could carry out such a request.
The inmate, who was cooperating with investigators, met with Jones for 10 to 15 private conversations in March and April 2012. Jones offered to give the inmate a cell phone to call a hit man, avoiding the possibility of the conversation being recorded if the call were placed on a landline at the prison.
As a part of a routine quarterly personnel shift at the medical center, Jones was moved to a different unit and was therefore unable to meet with the inmate for a period of time. The inmate later reestablished contact with Jones after being moved to a cell in the same unit that Jones was assigned. They met again on June 21, 2012, the first day they were in the unit at the same time. They had multiple meetings during July 2012, with Jones standing outside the inmate’s jail cell and speaking to him through an opening in the door. All the meetings were captured on the unit’s surveillance system. During one of those meetings, Jones told the inmate that his wife had left him and took all their belongings except the couch, television and bills, and he blamed John Doe for his wife’s departure.
An undercover FBI agent posed as a hit man named Chuey, and the inmate gave Jones a telephone number to contact Chuey. Jones contacted Chuey and made arrangements to meet in the food court located inside the Battlefield Mall in Springfield. At that meeting, Jones told the undercover agent he would pay him $1,500 to murder John Doe and provided the undercover agent with a photograph of John Doe, his home address, and $1,500 in cash. At the conclusion of the meeting, Jones was arrested.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the U.S. Medical Center for Federal Prisoners Special Investigative Support, the FBI and the Department of Justice, Office of the Inspector General.Branson Man Indicted for Clean Water Act Violations, Falsified Reports of Pollution DischargeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., man was indicted by a federal grand jury today for making false statements.
Earl Patrick Kearney, 60, of Branson, was charged in a 12-count indictment returned by a federal grand jury in Springfield, Mo.
Kearney was employed by the Overlook subdivision and the Morningside development in Stone County, Mo., to operate their wastewater treatment facilities from May 2010 to August 2011. Kearney was responsible for conducting wastewater sampling at the facilities and submitting those results to the Missouri Department of Natural Resources.
Today’s indictment alleges that Kearney altered the reports he submitted to the state so that it appeared the Overlook subdivision and the Morningside development were in compliance with their wastewater discharge permits.
Kearney submitted quarterly Wastewater Discharge Monitoring Reports that reported sampling results for total phosphorous, one of the pollutants that is required to be reported for both facilities. All of the reports represented that the Overlook subdivision and Morningside development wastewater treatment facilities were in compliance with their permits. However, the actual laboratory testing data that Kearney received, following his submission of samples for testing, placed both wastewater treatment facilities in violation of their permits during every quarter for which samples were analyzed. After Kearney received the laboratory testing data, he allegedly caused the numbers to be altered on the reports that were subsequently submitted to the state.
The Overlook subdivision wastewater treatment facility discharged to Table Rock Lake. The Morningside development wastewater treatment facility discharged to an unnamed tributary to Brush Creek, a tributary of Table Rock Lake.
Kearney is charged with five counts of making false statements in regard to the Overlook subdivision reports and seven counts of making false statements in regard to the Morningside development reports.
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 Steve Mohlhenrich. It was investigated by the Environmental Protection Agency, Criminal Investigation Division and the Missouri Department of Natural Resources.Billings Bank President Sentenced for $413,000 Bank Fraud, Money Laundering SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the Bank of Billings in Billings, Mo., was sentenced in federal court today for a $413,000 bank fraud and money laundering scheme.
Matthew D. Spillman, 35, of Nixa, Mo., was sentenced by U.S. District Judge Beth Phillips to 30 months in federal prison without parole. The court also ordered Spillman to pay $179,952 in restitution to the Bank of Billings and $233,952 in restitution to BancInsure.
Spillman was the president of Bank of Billings until he was terminated for misappropriating bank funds. Spillman engaged in a scheme to defraud and embezzle from the Bank of Billings from May 20, 2011, until he was suspended from his position on April 13, 2012.
On Oct. 11, 2013, Spillman pleaded guilty to bank fraud and money laundering. As a part of the fraud scheme, Spillman caused the bank to grant loans in nominee names, and kept the loan proceeds for himself. Spillman also added debt to loans without the borrowers’ knowledge, and converted the additional funds to his own use. He advanced funds on bank customers’ lines of credit, and converted those funds to his own use. Spillman used a bank credit card for personal expenses. He embezzled and converted to his own use loan payments made by bank customers. Spillman also caused the bank to issue cashier’s checks without depositing funds to cover those checks.
By pleading guilty, Spillman acknowledged that the total financial harm he caused the Bank of Billings as a result of his scheme to defraud was $413,905.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI, the FDIC-Office of Inspector General and IRS-Criminal Investigation.
Joplin Attorney Pleads Guilty to Stealing $586,000 from ClientsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., attorney pleaded guilty in federal court today to stealing more than $586,000 from his clients.
Daniel D. Whitworth, 58, of Joplin, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a three-count federal information that charges him with wire fraud, money laundering and false statements on tax returns.
Whitworth was the owner of a law practice in Joplin. By pleading guilty today, Whitworth admitted that he embezzled approximately $586,739 from 22 of his legal clients between 2004 and Oct. 18, 2013. Whitworth spent these embezzled funds on personal loans and items unrelated to the legal matters of his clients.
Law enforcement officers investigated complaints made to the Office of Chief Disciplinary Counsel of the Missouri Supreme Court about Whitworth’s theft of client money. Investigators determined from bank records and speaking with former clients that Whitworth repeatedly took money from and for clients. He claimed that money would be used to resolve the matter that the client had pending before the court. In many instances, Whitworth deposited the client’s money either into his attorney trust account or into his personal bank accounts. After depositing his client’s money, Whitworth would then withdraw money and pay for personal expenses and items that were entirely unrelated to his client’s legal case.
Whitworth also admitted that he failed to report the embezzled funds on his personal income tax returns for the years 2009-2011, which the plea agreement says totaled $448,835. Whitworth did not file an income tax return for 2012, according to the plea agreement, and therefore did not report the embezzled funds during this year as well.
Under the terms of today’s plea agreement, Whitworth must surrender his license to practice law in any and all jurisdictions and forfeit to the government a $586,739 money judgment.
Under federal statutes, Whitworth is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $750,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Missouri Highway Patrol and IRS-Criminal Investigation.Georgia Man Indicted for Stealing Deceased Persons' Identities to gain $2.3 Million in State Tax RefundsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Georgia man has been indicted by a federal grand jury for a scheme using the identity information of deceased persons to obtain more than $2.3 million in tax refunds from several states.
Sirhon Rivers, also known as “Ron,” 40, of Georgia, was charged in a 32-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on March 19, 2014. That indictment was unsealed and made public following the arrest and initial court appearance of Rivers in Atlanta, Ga., on Tuesday, March 25, 2014. He remains in federal custody pending a detention hearing in Atlanta.
The federal indictment alleges that Rivers unlawfully obtained $547,000 from the Missouri Department of Revenue by filing fraudulent tax returns. Rivers allegedly used the same scheme in others states to unlawfully acquire a total of $2,365,000 in fraudulent state tax refunds. The indictment alleges that Rivers participated in this conspiracy to commit wire fraud and aggravated identity theft from January 2008 to August 2012.
According to the indictment, Rivers obtained personal identification information – including names, Social Security numbers, and dates of birth – from deceased persons. He allegedly submitted state tax returns using that information, adding false and fraudulent information such as employment and wages earned. State tax returns were submitted electronically, the indictment says, with the refunds electronically transferred to bank accounts that Rivers opened at several financial institutions.
In addition to the wire fraud and identity theft conspiracy, Rivers is charged with 25 counts of wire fraud, five counts of aggravated identity theft and one count of conspiracy to commit money laundering. The indictment also contains a forfeiture allegation, which would require Rivers to forfeit to the government any property derived from the proceeds of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Missouri Department of Revenue Criminal Tax Investigations Bureau and the Missouri Department of Revenue Compliance and Investigation Bureau.Jury Convicts KC Man 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 Kansas City, Mo., man was convicted in federal court today on charges related to child pornography.
Donald T. Paris, Jr., 27, of Kansas City, was found guilty of one count of producing child pornography, one count of receiving child pornography over the Internet, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Evidence introduced during the trial indicated that Paris used a child victim, identified in the indictment as “CV,” to produce child pornography in December 2010. Paris also used his e-mail account to receive, transport and possess separate images of child pornography in December 2010 and December 2011.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdicts to U.S. District Judge Beth Phillips, ending a trial that began Monday, March 24, 2014.
Under federal statutes, Paris is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 80 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 Patrick D. Daly. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Taney County, Mo., Sheriff’s Department, the North Richland Hills, Texas, Police Department and the Branson, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former IRS Employee Indicted for Taxpayer ID Theft, Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former employee of the Internal Revenue Service is among three defendants who have been indicted for stealing taxpayers’ identity information in order to receive fraudulent tax refunds.
Taylor S. Knight, 32, and Michael J. Moore, 27, both of Kansas City, Mo., and Michael Stalcup, 42, of Farley, Mo., were charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 18, 2014. The indictment was unsealed and made public today upon their arrests and initial court appearances.
According to the indictment, Knight worked as an employee of the IRS at the office at 333 W. Pershing Rd., Kansas City, from March 2009 to January 2012. Taylor allegedly abused her position of trust by accessing the information of three taxpayers without authorization.
On Sept. 30, 2011, Knight allegedly used the information from two of the victim taxpayers to submit a bogus online application for three prepaid debit cards. These debit cards were issued and mailed to the residence of Moore’s grandmother, the indictment says. Moore allegedly monitored the mail sent to his grandmother’s address and retrieved the three prepaid debit cards.
For one of the victim taxpayers, the indictment says, Knight submitted a bogus online application for a prepaid debit card that was approved and mailed to an address in Oak Grove, Mo.; this debit card was never used. The indictment alleges that Knight submitted this false online application to test whether her scheme to defraud the IRS was viable.
On Oct. 17, 2011, one of the conspirators allegedly submitted a 2010 tax return for two of the victim taxpayers, who were married and filed their taxes jointly. The IRS approved a $46,572 refund, the indictment says, of which $5,000 was deposited on a debit card that had been obtained by Knight. The IRS attempted to deposit the remaining $41,572 refund on the other debit cards obtained by Knight, according to the indictment, but the receiving banks rejected the deposits.
Moore allegedly telephoned the IRS and falsely claimed to be the victim. He allegedly provided the IRS representative pertinent personal identification information for both victims and requested the IRS to send the remaining tax refund to a new address located in Independence, Mo. Moore identified this address, the indictment says, because it was his former residence and he knew it was unoccupied.
In August 2011, the victim taxpayers filed legitimate amended tax returns. According to the indictment, a $46,734 refund check was sent to the Independence address. Moore allegedly received the refund check at his former residence and gave it to Knight. Knight allegedly paid Stalcup $500 to help her cash the refund check. Knight allegedly obtained false identification documents – including Social Security cards and driver’s licenses – so that she and Stalcup could assume the identity of the victim taxpayers. They attempted to cash the refund check at a local gas station, but the business refused and reported the incident to law enforcement.
The federal indictment charges Knight, Moore and Stalcup with participating in a conspiracy to defraud the United States by using the identification of genuine taxpayers to fraudulently induce the IRS into issuing tax refund payments based on false information submitted by co-conspirators.
In addition to the conspiracy, Knight and Moore are charged together with one count of the theft of government money, two counts of aggravated identity theft, one count of mail fraud and one count of the misuse of a Social Security number.
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 Trey Alford. It was investigated by the Treasury Inspector General for Tax Administration.21 KC-area Men Indicted for Distributing Cocaine, Crack CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 21 Kansas City, Mo., area men have been indicted by a federal grand jury, in a series of separate, but related, indictments for distributing cocaine and crack cocaine in Jackson County, Mo.
Law enforcement officers arrested 12 defendants in an operation today. During the course of the investigation, officers seized more than five kilograms of cocaine, approximately $200,000 and six firearms.
Three indictments were returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, March 19, 2014. The federal indictments were unsealed and made public today upon the arrests and initial court appearances of the defendants.
USA v. Piggie, et al
Frenklyn Piggie, 36, Olufemi Siffre, 36, James Caldwell, 36, Kidada Clayborn, also known as “Goldie,” 36, Robert Clark, 33, Frederick D. Clark, 20, David Ramsey, 52, Dawawn Orr, 33, Nathaniel Morris, 43, Kenneth Harvey, 27, Ronnie Prewitt, 32, Ryan Wilson, 34, Dennis Griffin, 55, Brian Whitley, 36, Maurice L. Campbell, 48, Leon Lee, also known as “JJ,” 33, Jerome L. Barnes, 33, all of Kansas City, Mo.; DeMichael Johnson, also known as “Shaq,” 35, of Raytown, Mo.; and Jesus Frye-Santoyo, 28, of Kansas City, Kan., were charged in a 43-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, March 19, 2014.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute five kilograms or more of cocaine and crack cocaine in Jackson County from Jan. 1, 2013, to March 19, 2014.
In addition to the conspiracy, Piggie and Frye-Santoyo are charged together in one count of possessing five kilograms or more of cocaine with the intent to distribute. Other defendants are also charged in various counts related to distributing cocaine and crack cocaine.
Piggie is also charged with one count of possessing a firearm in furtherance of drug-trafficking crimes and one count of being a felon in possession of a firearm. Frederick Clark is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime.
USA v. Bell
Terrell Bell, 29, of Raytown, Mo., is charged with one count of participating in a conspiracy to distribute cocaine and crack cocaine from Sept. 1 to Dec. 1, 2013. Bell is also charged with two counts of distributing crack cocaine.
USA v. Reed
Monroe E. Reed, 34, of Kansas City, Mo., is charged with seven counts of distributing crack cocaine and two counts of possessing crack cocaine with the intent to distribute.
Reed is also charged with possessing firearms in furtherance of drug-trafficking crimes. Reed allegedly was in possession of an S & W .22-caliber rifle, a Century Arms 7.62-caliber rifle, a Hi-Point .45-caliber rifle, a Bersa .38-caliber pistol, an Armi Tanfoglio .25-caliber pistol and a Lorcin .380-caliber pistol on Oct. 30, 2012.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Brent Venneman. They were investigated by the FBI, the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Russellville Man Charged with Meth, Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Russellville, Mo., man was charged in federal court today with illegally possessing methamphetamine and firearms.
Emmanuel Guillen, 21, a citizen of Mexico residing in Russellville, was charged in a federal criminal complaint filed in the U.S. District Court in Jefferson City, Mo.
The complaint charges Guillen with one count of possessing methamphetamine with the intent to distribute and one count of being an illegal alien in possession of a firearm.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers executed a search warrant at Guillen’s residence on Thursday, March 20, 2014, as part of an investigation into alleged narcotics sales at that location.
Officers found a box in a bedroom closet that contained five plastic containers, the affidavit says, which contained a total of 625 grams of methamphetamine. Two bags of methamphetamine, totaling 60 grams, were found in a vehicle parked in the driveway. Officers also found 21 firearms – including handguns, rifles and shotguns – in the residence and in two vehicles parked in the driveway. Two of the firearms have shortened barrels and neither has a serial number. Officers found a small safe in the bedroom closet that contained $13,168; Guillen also had $2,504 in his wallet.
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 Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department, the MUSTANG Drug Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Four Mexican Nationals Indicted for Fake Documents ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four Mexican nationals have been indicted for their roles in a conspiracy to produce and distribute counterfeit identification documents to illegal aliens.
Eriberto Moises Medina-Aranda, 39, of Rayville, Mo., his half-brother, Cesar Mujica-Aranda, 24, of Liberty, Mo., and Bernardino Bautista-Hernandez, 31, of Kansas City, Mo., and Ulises Montiel-Lazcano, 34, of Merriam, Kan., all of whom are citizens of Mexico, were charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, March 21, 2014. The indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Medina-Aranda, Mujica-Aranda, Bautista-Hernandez and Montiel-Lazcano participated in a conspiracy to produce false government identification documents between Sept. 1, 2013, and Feb. 21, 2014. They are also charged together in one count of aiding and abetting each other to produce counterfeit alien registration receipt cards (also known as lawful permanent resident cards) and other documents that are used as evidence of authorized stay or employment in the United States (including Social Security cards).
In addition to the conspiracy, Medina-Aranda and Mujica-Aranda are charged together in one count of possessing implements to create identification documents with the intent to produce false identification documents.
Medina-Aranda is also charged with one count of being an illegal alien in possession of firearms and ammunition and one count of being a felon in possession of firearms and ammunition. Medina-Aranda, who has a prior felony conviction and is illegally in the United States, allegedly possessed a Smith & Wesson semi-automatic rifle, a Marlin Firearms rifle and ammunition in February 2014. He is also charged with one count of illegally reentering the United States after having been deported and after having been convicted of a felony.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government the illicit proceeds derived from the alleged conspiracy as well as items that were seized by law enforcement officers, including $8,156 seized from Montiel-Lazcano at the time of his arrest, $1,840 seized from Mujica-Aranda’s residence, five computer towers, printers, four cameras, cell phones, digital media storage devices, and the rifles and 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 Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI); the Social Security Administration, Office of Inspector General; the Kansas Department of Revenue, Office of Special Investigations; the Missouri Department of Revenue, Compliance & Investigations Bureau; the Missouri State Highway Patrol and the Clay County, Mo., Prosecuting Attorney.
Two Men Sentenced for $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two men were sentenced in federal court today for their roles in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Bob True Beisly, III, 40, of Nevada, Mo., and Ronald Bunn,45, of Deerfield, Mo., were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Beisly was sentenced to two years and 11 months in federal prison without parole (to run consecutively to his state criminal cases) and ordered to pay $559,616 in restitution to Cargill. Bunn was sentenced to two years and three months in federal prison without parole and ordered to pay $754,564 in restitution to Cargill. In a separate but related case, Jeffrey Hobbs, 41, of Exeter, Mo., was sentenced on Nov. 21, 2013, to two years and eight months in federal prison without parole and ordered to pay $2,334,180 in restitution to Cargill. Each of the three defendants will be held jointly and severally liable for the restitution payments.
Beisly pleaded guilty on Aug. 6, 2013, to one count of wire fraud and one count of mail fraud. Bunn pleaded guilty on Nov. 12, 2013, to two counts of mail fraud. Hobbs pleaded guilty on May 20, 2013, to one count of wire fraud.
Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Beisly and Bunn approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Beisly and Bunn for the delivery of loads of grain, corn or feed that did not truly exist.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Bunn owned and operating RB Grain. Bunn was contracted through The Scoular Company to transport shipments of wheat, corn and grain to the Cargill feed mill in Butterfield. Bunn also admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Scoular received a payment from Cargill based on the submission of a fictitious scale ticket, Scoular issued a check to Bunn based on the delivery of wheat, corn or feed that was never delivered.
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million.
These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and the Missouri State Highway Patrol.Kirbyville Man Pleads Guilty to $1.3 Million K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a Kirbyville, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Michael J. Saguto, 43, of Kirbyville, pleaded guilty before U.S. Magistrate Judge David P. Rush to participating in a conspiracy to commit mail fraud and to participating in a conspiracy to commit money laundering. Under the terms of today’s plea agreement, Saguto must forfeit to the government $1,354,034, which represents the proceeds of the mail fraud conspiracy and for which Saguto is jointly and severally liable with his co-defendants.
By pleading guilty today, Saguto admitted that he conspired with others between March 1, 2011, and June 24, 2013, to defraud the Food and Drug Administration and to defraud the public by falsely representing that a number of synthetic cannabinoid products were “incense” or “potpourri” and “not for human consumption.” In reality, Saguto admitted, these substances contained compounds that were intended for human consumption as a drug.
Based upon the invoices, ledgers, and product seizures by law enforcement, this conspiracy was responsible for the manufacture and/or distribution of at least 188.14038 kilograms of synthetic cannabinoid products.
Co-defendants Travis E. Butchee, also known as “Donkey,” 38, of Springfield, and Christian L. Turner, 46, of Kirbyville, have also pleaded guilty. Butchee pleaded guilty to the same two conspiracy charges; Turner pleaded guilty to possession with intent to distribute a controlled substance analogue and to being a felon in possession of firearms. Travis Butchee’s wife, Victoria A. Butchee, also known as Victoria A. Wohlin, 29, of Springfield, also has pleaded guilty to her role in the mail fraud conspiracy.
Travis Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Travis Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
Today’s plea agreement cites a number of transactions in which materials used to manufacture and distribute synthetic cannabinoids were shipped via UPS or FedEx to members of the conspiracy – including controlled substance analogues (synthetic chemical compounds similar to THC, the psychoactive ingredient in marijuana), green leafy substances which served as carrier media, labels that were affixed to packages of “Donkey Punch,” “Jolly Grape Giant,” “South of the Tracks,” “Baby Face,” “Scarface,” “Hillbilly Hay,” and other synthetic cannabinoid products, and foil and plastic packaging bags.
Travis Butchee and Saguto also admitted that they conducted financial transactions that involved the proceeds of the unlawful mail fraud conspiracy. They conspired to wire funds to the People’s Republic of China in order to carry out the conspiracy.
Turner, who has been convicted of a felony, admitted that he was in possession of a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle. Taney County sheriff’s deputies seized those firearms when they responded to an assault call on March 15, 2013. Turner was arrested and a search warrant was served on his residence. The following items were seized: the seven long guns and associated ammunition, drug paraphernalia, including 242 smoking pipes, and three bags of synthetic cannabinoids.
Under federal statutes, Saguto and Travis Butchee are each subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $750,000. Turner is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1,250,000. Victoria Butchee is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.