Western District of Missouri
Press releases recorded for this federal judicial district.
Jefferson City Man Indicted for Distributing HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has been indicted by a federal grand jury for distributing heroin.
Xavier Deprey Johnson, 31, of Jefferson City, was charged in a two-count indictment returned by a federal grand jury in Jefferson City on Wednesday, March 19,2014.
The federal indictment indictment charges Johnson with one count of distributing heroin in Cole County, Mo., on July 30, 2013, and one count of possessing heroin with the intent to distribute in Cole County on Aug. 27, 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 Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Columbia Man Indicted for Sex Trafficking Two VictimsRead the Press Release
Human Trafficking Rescue Project
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been indicted by a federal grand jury on charges related to the sex trafficking of two victims, one of them a minor.
Kenyata D. Miles, 33, of Columbia, was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, March 19, 2014.
The federal indictment indictment charges Miles with one count of sex trafficking and one count of the attempted sex trafficking of a child. Miles allegedly used a victim (identified in the indictment as “K.M.”) knowing and in reckless disregard of the fact that force, threats of force, fraud and coercion would be used to cause “K.M.” to engage in prostitution. The indictment also alleges that Miles used a second, minor victim (identified in the indictment as “EN”) knowing and in reckless disregard of the fact that “EN” was a minor and would be caused to engage in prostitution.
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 FBI, the Boone County, Mo., Sheriff’s Department and the Osage Beach, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.Ava Woman Sentenced for Embezzling $212,000 from Employer in Wire Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ava, Mo., woman was sentenced in federal court today for embezzling $212,100 from her employer.
Peggy J. Duncan, 63, of Ava, was sentenced by U.S. District Judge Gary A. Fenner to three years and two months in federal prison without parole. The court also ordered Duncan to pay $212,100 in restitution to her victims.
Duncan was the account manager for the law firm of Carmichael & Neal, P.C. In addition to her other duties, Duncan handled the accounts payable and reconciled bank accounts for multiple corporations operated by Lloyd and Rose Carmichael, including Affordable Homes Development, LLC. During her employment, Duncan and her husband jointly owned Twin Oaks Mill, Inc., a sawmill located in Ava.
On Aug. 29, 2013, Duncan pleaded guilty to two counts of wire fraud. Duncan admitted that she prepared 47 checks totaling $212,100 drawn on the Affordable Homes bank account from September 2006 to February 2009. Each of these checks was made payable to herself or to Twin Oaks Mill. Duncan forged her employer’s name to the checks without his knowledge or permission and deposited the checks into her own bank accounts. Duncan converted these funds to her and her husband’s personal use.
Duncan then entered false information into the Affordable Homes Reconciliation Detail Report which she presented to Lloyd Carmichael each month. The false information entered by Duncan made it appear that each check was written to other parties and was written for an otherwise authorized and legitimate purpose.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Springfield, Mo., Police Department.
Two KC Men Indicted for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were indicted by a federal grand jury today for the armed robbery of Commerce Bank.
Kortlin D. Hughes, 21, and Samuel A. Washington, 22, both of Kansas City, were charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Hughes and Washington used firearms to rob Commerce Bank, 8901 State Line Rd., Kansas City, Mo., on Nov. 15, 2012. The indictment also charges Hughes and Washington with one count of brandishing firearms during a crime of violence.
According to an affidavit filed in support of the original criminal complaint, Hughes and Washington both carried handguns when they entered the bank at approximately 9:30 a.m. One of the men jumped over the teller counter and took money from one of the teller drawers. At one point, the affidavit says, he pointed a gun at a customer and in the face of a bank employee. He also allegedly put a gun up to a teller’s neck and said, “Do you want to die? Where’s the money?” He jumped back over the counter, met the second robber who had stayed in the lobby, and both robbers left the bank. The bank reported a loss of $6,922.
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 Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.Memphis Truck Driver Pleads Guilty to Stealing Cargo in West PlainsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Memphis, Tenn., truck driver pleaded guilty in federal court today to his role in a cargo theft scheme that included a theft in West Plains, Mo.
Michael Lee Sherley, 49, of Memphis, pleaded guilty before U.S. Magistrate Judge David P. Rush to theft of an interstate shipment.
According to today’s plea agreement, Sherley was employed by Nu World Trucking, LLC, a Memphis company in the business of transporting goods in interstate commerce, from July 2012 until his arrest on May 12, 2013.
Sherley was part of a cargo theft ring that used the resources of Nu World Trucking to steal cargo in various states. They did so by “bob-tailing” (meaning they traveled in a road tractor truck, without a semi-trailer attached) through truck stops and service stations located on or near interstate highways, looking for semi-trailers that had been left parked and unattended, and were not coupled to road tractors. When they located a semi-trailer that appeared to be unattended, they would steal the semi-trailer and the goods it contained by coupling their road tractor truck to it and driving off. After having stolen a semi-trailer and its contents, they usually transported the stolen goods to the Chicago, Ill., and Detroit, Mich., areas to be “fenced” or sold.
The specific charge to which Sherley pleaded guilty today involves a theft that occurred on May 11, 2013, at the Snappy Mart Truck Stop in West Plains. Sherley and another person stole a 2000 Wabash trailer (valued at $7,500), which contained a load of Green Giant canned corn (valued at $73,008). The trailer, owned by Bryant Freight, LLC, was in transit from Minnesota to a food bank in Arkansas. Sherley admitted that they traveled through Missouri and Indiana with the stolen cargo before being apprehended in Michigan.
Under federal statutes, Sherley is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI’s Memphis Cargo Theft Task Force, the U.S. Marshal’s Service, the West Plains, Mo., Police Department and the Michigan State Highway Patrol.KC Woman Indicted for False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was indicted by a federal grand jury today for filing fraudulent tax returns for her clients.
Dinette Kay Cadenhead, also known as Kay Taylor, 46, of Kansas City, was charged in a 35-count indictment returned by a federal grand jury in Kansas City, Mo.
According to today’s indictment, Cadenhead owned and operated a car detailing business (Awesome Accessories, LLC, in Raytown, Mo.) and prepared tax returns for clients.
Cadenhead was charged with 29 counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. Cadenhead allegedly prepared federal income tax returns for clients that contained false and fraudulent claims. Cadenhead assisted at least 12 individuals to file at least 29 false and fraudulent income tax returns for the tax years 2008 through 2011, the indictment says. The tax loss associated with those false returns is $109,627, the indictment says, while the aggregate tax loss (including relevant conduct) is $134,237.
Cadenhead allegedly utilized false deductions (for charitable deductions, medical expenses, accounting expenses, attorney expenses, unreimbursed employee expenses and other expenses) and false IRA deductions to increase her clients’ refunds, without the clients’ knowledge. Cadenhead also included other fraudulent entries, the indictment says, including eight false Schedule C reporting net businesses losses, 10 false energy credits and seven fraudulent dependents, all without her clients’ knowledge.
Cadenhead was also charged with one count of theft of public money. According to the indictment, Cadenhead charged her clients a fee between $65 and $600 per return. However, Cadenhead allegedly diverted a portion of the fraudulent refund into her bank account, without the knowledge of her clients, which increased the amount she received for each return. Cadenhead fraudulently received up to $2,600 for preparing a return, the indictment says, and directed over $14,000 into her bank accounts from her clients’ refunds without their knowledge or permission. Cadenhead allegedly stole money that belonged to the United States by taking portions of inflated tax refunds without the knowledge or authorization of the tax payer.
Cadenhead was charged with five counts of aggravated identity theft. Cadenhead allegedly used the name and Social Security numbers of individuals in relation to the theft of public money. According to the indictment, Cadenhead used the name and Social Security numbers of individuals on federal income tax returns in order to fraudulently claim them as dependents of her clients. Cadenhead unlawfully diverted a portion of the inflated refunds to herself, according to the indictment.
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 Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.KC Man Sentenced to 15 Years for Stealing 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 stealing an AK-47 from a pawn shop.
Henry Lee Williams, 55, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 15 years in federal prison without parole. Williams was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 6, 2013, Williams pleaded guilty to being a felon in possession of a firearm and to stealing a firearm from a federal firearms licensee.
Raytown police officers responded to a call from Game Stop on Dec. 19, 2012, regarding a man who had just stolen an iPad. An officer, with his emergency lights and siren on, followed Williams’s vehicle for several blocks before Williams finally pulled over. The officer ordered Williams out of the car, but he refused. Williams claimed his driver’s side door would not open. As another officer walked up to the passenger side widow, he could see Williams still had the car in drive. The officer ordered Williams to place the car in park, which he did. After several more commands, Williams finally exited the car through the passenger side door. He locked the doors as he exited.
An officer looked through the car window and saw an iPad, with a Game Stop price tag and wrapped in bubble wrap, wedged between the center console and the front passenger seat. The officer placed the iPad on the trunk lid of the vehicle. Officers attempted to arrest Williams, but initially he refused their commands. When the officer pushed him over on top of the car trunk, Williams grabbed the iPad with his left hand. He then tucked the hand under his body. Williams would not untuck his hand despite warnings, and officers had to apply force in order to handcuff him.
Once Williams was handcuffed and placed under arrest, officers called for a tow truck. During the inventory search of Williams’s car, officers discovered a duffle bag that contained an AK-47 7.62 x 39 rifle with 20 rounds loaded in the attached high-capacity magazine.
A check revealed the firearm had been stolen from Smart Pawn in Kansas City, Mo. Video surveillance tape and witness accounts of the Dec. 11, 2012, incident at Smart Pawn established that Williams entered Smart Pawn and was hiding out near the firearms counter when he reached over the counter, took the AK-47, and walked out.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has prior felony convictions for theft, burglary and second degree murder.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Raytown, Mo., Police Department, 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.Sex Offender Sentenced to 15 Years 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 Grandview, Mo., man who is a convicted sex offender was sentenced in federal court today for receiving child pornography over the Internet.
Robert E. Shepherd, 41, of Grandview, was sentenced by U.S. District Judge Dean Whipple to 15 years and eight months in federal prison without parole.
Shepherd, who pleaded guilty on May 15, 2013, was on state parole at the time of the federal offense after being convicted on state charges of statutory rape and statutory sodomy in Cass County in 2000 and of statutory sodomy in Clay County in 1999. He absconded from state parole during the federal criminal investigation and was a fugitive from justice for almost four years. Shepherd was arrested at the Mexican border and his parole revoked in December 2011, for which he served a year in state prison before being indicted and taken into federal custody.
Shepherd brought his computer to a computer repair facility in April 2008. Approximately a week later, a technician at the facility discovered at least one image of child pornography on the computer. The technician notified law enforcement officers, who retrieved the computer and obtained a search warrant for Shepherd’s residence. Officers seized additional computers and electronic media at Shepherd’s residence. Two videos of child pornography were discovered on the computers.
This case was being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Grandview, Mo., Police Department and the Lee’s Summit, 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."Galena Woman Pleads Guilty to Embezzling $300,000 from EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Galena, Mo., woman pleaded guilty in federal court today to embezzling more than $300,000 from her employer.
Sarah N. Underwood,35, of Galena, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to wire fraud, money laundering and failure to file a tax return.
According to today’s plea agreement, Underwood worked as the community manager for Fall Creek Condominium in Branson, Mo., from Jan. 15, 2007, until she was fired on Sept. 7, 2012, when her theft was discovered. Fall Creek and its owners association has 639 condominiums owned by individuals and under its association. Among other duties, Underwood was responsible for the book-keeping and financial affairs of Fall Creek, and was an authorized signatory on the checking accounts.
By pleading guilty today, Underwood admitted that she conducted numerous unauthorized electronic bank transfers and wrote $311,280 in unauthorized checks from the bank accounts of the Fall Creek Condominium Owner’s Association. Underwood deposited these checks into her bank accounts and spent the money on personal expenses and purchases.
For example, Underwood admitted that she spent $76,287 to purchase a Shelby Mustang, used $25,505 to purchase a condominium at Fall Creek and received two paychecks every two weeks from Fall Creek.
Underwood used a cashier’s check written on her employer’s bank account to purchase a 2012 Ford F350 Super Duty 4X4 Crew Cab Truck for $56,169. The truck was registered to Mstrmind Enterprises, a company owned by her and her boyfriend, which performed construction and rehabilitation work at Fall Creek. Underwood was responsible for running the business affairs of Mstrmind, while her boyfriend, who was also employed by Fall Creek, was the project manager and responsible for the actual construction or rehabilitation project. The embezzlement scheme included an $80,000 check written to Mstrmind that was purportedly payment for work performed, but Underwood could not justify the payment.
Underwood also admitted that she failed to file federal tax returns for 2010, 2011 and 2012.
Under federal statutes, Underwood is subject to a sentence of up to 31 years in federal prison without parole, plus a fine up to $525,000 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 FBI and IRS-Criminal Investigation.Springfield Woman Pleads Guilty to Assaulting Federal Agent with her CarRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to assaulting a federal agent with her car while he was attempting to apprehend her boyfriend during a foot chase.
Alisha Johnson, 32, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 17, 2013, federal indictment. Johnson remains in federal custody.
On July 25, 2013, U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) agents were attempting to apprehend Francisco Sosa-Lopez for immigration violations. When Sosa-Lopez saw the approaching agents, he fled the area on foot. While the agents were pursuing Sosa-Lopez, Alisha Johnson arrived in her vehicle and attempted to pick up Sosa-Lopez.
As Sosa-Lopez attempted to get in the vehicle, Johnson shouted derogatory comments at the pursuing agents, indicating that she was aware of the agents’ intent to apprehend Sosa-Lopez. Agents continued the pursuit and ordered Sosa-Lopez to not enter the vehicle. Sosa-Lopez ignored the agents’ directives and continued to try to enter the rolling vehicle. As one of the agents approached Sosa-Lopez, Johnson drove her vehicle over the curb and into the agent, striking the agent on the left leg. Sosa-Lopez entered the vehicle and fled from the scene; he remains a fugitive from justice. Johnson voluntarily surrendered to law enforcement shortly after the incident.
As result of being struck by the vehicle, the federal agent suffered significant damage to his knee. Two surgeries were later performed on his knee.
Under federal statutes, Johnson is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the Greene County, Mo., Sheriff’s Department.Sedalia Business Owner Pleads Guilty to Making False Claims on Tax ReturnsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., business owner pleaded guilty in federal court today to making false claims on 186 federal tax returns so that her clients received nearly $478,000 in tax credits to which they were not entitled.
Martha L. Stokes, 44, of Sedalia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in an April 3, 2013, federal indictment.
Stokes is the owner of Julis Authentic Mexican Cuisine in Sedalia, and also owned and operated Destino Servicios Administravos in Sedalia. She represented herself as a tax return preparer as part of Destino’s operation and, in 2009 and 2010, prepared federal income tax returns for taxpayers who resided in several states, including South Dakota.
By pleading guilty today, Stokes admitted that she prepared and filed 186 fraudulent tax returns for taxpayers residing in South Dakota, in which she falsely claimed an additional child tax credit for her clients to which they were not entitled. The tax loss for these 186 returns totals $477,934.
Under federal statutes, Stokes is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by IRS-Criminal Investigation.
KC Man Sentenced to 13 Years for Leading $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 a Kansas City, Mo., man was sentenced in federal court today for leading 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.
Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 13 years in federal prison without parole. The court also ordered Poynter to pay $951,930 in restitution to the government.
On Nov. 7, 2013, Poynter pleaded guilty to one count of conspiracy to defraud the United States by filing fraudulent tax returns and one count of filing a fraudulent tax return. Poynter admitted that conspirators prepared and filed 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, Poynter’s 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.
Some individuals received hundreds of thousands of dollars in refunds. For the returns that successfully were paid out, Poynter received a fee. In an attempt to mask his involvement, Poynter requested that conspirators refer to his fees as “love donations,” frequently directing them to write checks to “Jerry Love Ministries.” Poynter used computer software to file returns electronically from his karate studio in Blue Springs.
Poynter filed returns in his own name, and in the names of his family. Poynter received a refund of $196,348 as a result of filing a fraudulent claim in July 2008. Poynter personally was responsible for recruiting at least 44 filers to the scheme. Poynter submitted at least $25 million in fraudulent claims on 81 returns filed for his clients, which caused a tax loss to the United States of at least $951,930.
Poynter also recruited “branch managers” who in turn recruited additional filers to the scheme.
Poynter is among 11 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., and Maria Haro Campos, 42, of Vista, Calif., have each pleaded guilty in separate but related cases.
Poynter 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. He also joked that his going to prison was a possibility.
In addition to this training session, Poynter conducted and participated in numerous other seminars and conference calls around the country to promote his OID process. Poynter also maintained a Web site called “luckytown” that was used to promote the scheme.
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.Archie Man Pleads Guilty to $109,000 Social Security FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Archie, Mo., man pleaded guilty in federal court today to stealing government funds by working full time while he received more than $109,000 in Social Security disability payments.
Michael Burt, 39, of Archie, pleaded guilty before U.S. District Judge Gary A. Fenner to the theft of government money.
According to today’s plea agreement, Burt was approved to receive Social Security disability payments in December 2002 due to back disorders. Burt was deemed to be medically disabled and unable to work at a substantial gainful activity level as a result of his disability.
In July 2004, however, Burt began working full time for Two Bit Training in Overland Park, Kan., which provides horse riding lessons, hunter/jumper training and horse show assistance to its patrons. Between July 2004 and sometime in 2007, Burt worked at a substantial gainful activity level at Two Bit Training doing all sorts of manual labor, including cleaning stalls and looking after the horses. He failed to report his work activity to the Social Security Administration because he knew his work activity would impact his eligibility to receive disability payments. In fact, Burt concealed his work activity by falsely telling the Social Security Administration that he was not working.
Burt also had two minor children who were eligible to receive Social Security auxiliary benefits contingent on his eligibility to receive payments. Due to the fact that Burt was not eligible to receive disability payments, his minor children were also not eligible to receive the auxiliary payments they received. Burt also received a one-time $250 economic stimulus payment under the American Recovery and Reinvestment Act of 2009 that he was not entitled to receive.
As a result of Burt’s intentional concealment of his work activity as part of a scheme to fraudulently obtain Social Security disability payments, the total fraud loss incurred by Burt’s theft is $109,142. Under the terms of today’s plea agreement, Burt must make full restitution to the Social Security Administration.
Under federal statutes, Burt is subject to a sentence of up to 10 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 Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration, Office of Inspector General, Office of Investigations.
Nevada Man Charged with Sexual Exploitation of ChildrenRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Nevada, Mo., man was charged in federal court today with the sexual exploitation of a child after he assumed a false online identity as a woman and persuaded a teenage girl in Georgia to provide pornographic images of herself and to engage in illicit sexual activities.
Curtis Bowman, 42, of Nevada, was charged in a criminal complaint that was filed in the U.S. District Court in Springfield, Mo. Bowman remains in federal custody pending a detention hearing on Friday, March 14, 2014.
According to an affidavit filed in support of the federal criminal complaint, law enforcement officers in Cobb County, Ga., were contacted by the victim’s mother. She told officers that her 16-year-old daughter, identified as ”AS,” was involved in prostitution and had been communicating over the Internet and via cell phone texting with a person who scheduled “dates” for “AS” to have sex with adult males. This person requested “AS” to send nude images of herself, which she did, for the purpose of sending these images to the potential “dates.”
Georgia law enforcement officers identified Bowman and on Friday, March 7, 2014, local law enforcement officers executed a search warrant at Bowman’s residence, where he was arrested.
Bowman told officers that he portrayed himself as a female on the Internet and had met “AS” online. They later exchanged e-mail addresses and cell phone numbers so they could continue to communicate. While speaking to each other, the conversation turned sexual and at Bowman’s request, “AS” sent him several pornographic images of herself. Bowman also requested webcam sessions of “AS” where she would masturbate for him. Bowman never actually spoke with “AS” by phone or on webcam, he told officers, because then she would know he was not female. He told her his webcam was broken. Bowman stated he also sent “AS” nude images of his ex-wife that he portrayed as himself.
Bowman told officers that he decided to set up “dates” for “AS” and would live vicariously through her. Bowman admitted to sending both non-nude as well as nude images of “AS” to these individuals. They sent Bowman nude images of themselves, which Bowman sent to “AS.” Bowman set up four “dates” for “AS,” one approximately every two weeks. He admitted to watching one of those “dates” via “AS’s” webcam. He said “AS” snuck the male subject into her bedroom while her mother and brother were asleep.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Cobb County, Ga., 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."Former Agency Employee Pleads Guilty to Fraud Related to Tornado BenefitsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of an agency that administered disaster relief funds pleaded guilty in federal court today to her role in a wire fraud scheme following the tornado that struck Joplin, Mo., on May 22, 2011.
Herlana L. Latham, 32, of Memphis, Tenn., formerly of Joplin, Mo., pleaded guilty before U.S. Chief District Judge Greg Kays to the charge contained in a June 11, 2013, federal indictment.
By pleading guilty today, Latham admitted that she participated in a conspiracy to defraud the Economic Security Corporation of Southwest Area (ESC). The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011, tornado that struck Joplin.
Latham, an employee of ESC, and conspirators stole a total of $8,565 from the rental assistance program. Co-defendants Christopher L. Smith, 36, and John L.Williams, 31, both also of Memphis and formerly of Joplin, have also pleaded guilty to their roles in the conspiracy.
Latham submitted applications for rental assistance for payments to Smith and Williams, who were not the landlords or property managers of ESC clients. Latham did so by verifying false landlord information on the application forms.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012. The financial loss resulting from Smith’s conduct and for which Smith must pay restitution totals $3,935.
Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud. The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050.
Under federal statutes, Latham, Smith and Williams are each 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. 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 Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Two Men Plead Guilty to $1 Million Scheme to Defraud ArmyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two men have pleaded guilty to their roles in a $1 million fraud scheme to sell counterfeit and modified computer equipment to the U.S. Army.
Mark Morgan, 46, of Newport Coast, Calif., pleaded guilty today before U.S. District Judge Gary A. Fenner to the charge contained in a May 22, 2013, federal indictment. Roland Evans, 44, of Lee’s Summit, pleaded guilty to his role in the conspiracy on Wednesday, March 5, 2014.
Evans was an employee of Missouri Office Systems and Supplies, Inc. (MOSS), in Kansas City, Mo., which sold all types of office machines, including computers, software and other office furniture and supplies.
In August 2010, MOSS received a $2.1 million contract from the Army Recreation Machine Program (ARMP) for more than 2,500 Cisco parts – including network hardware, such as transceivers and switches, which allow computers to communicate with other computers. The network hardware was shipped to numerous locations, including ARMP headquarters at Fort Carson in Colorado Springs, Colo., as well as approximately 19 other ARMP locations in the United States and three international ARMP locations.
After receiving that contract, MOSS provided more than $1 million worth of counterfeit products and Cisco products that were used and modified post-manufacture and were obtained outside Cisco’s authorized distribution channels.
Evans handled all of the contracts MOSS had for Cisco products, including all of the contracts MOSS had with ARMP for Cisco products. MOSS provided 2,013 computer products that were improperly sourced, for which ARMP paid $1,073,022. Due to the products being improperly sourced, they were not eligible for Cisco warranties nor were the SMARTnet contracts legitimate. The products were unusable for ARMP and cannot be used in any portion of its computer network.
Evans admitted that he solicited equipment bids from Morgan’s firm, PRM Technology Equipment, LLC, knowing that it was outside of Cisco’s authorized distribution channels. Between August and December 2010, Morgan obtained counterfeit Cisco products and Cisco products which were used and modified post-manufacture outside of Cisco authorized distribution channels. Morgan shipped these products to ARMP, which paid MOSS $1,073,022. MOSS then paid Morgan $856,651 for the products.
Between September 2010 and August 2011, Evans and Morgan continued to insist to ARMP and to Cisco – in emails, phone conferences and meetings – that MOSS had supplied new, genuine Cisco goods and services which were sourced from Cisco authorized distribution channels and protected by full Cisco warranties as required by the contract. Evans and Morgan altered purchase orders and invoices, which they sent to Cisco to make it appear that the products were sourced properly.
Under the terms of today’s plea agreement, Morgan and Evans must pay $1,073,022 in restitution, for which they are jointly and severally liable. Under federal statutes, Morgan and Evans are 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 Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, the Department of Defense – Office of Inspector General and the Department of Homeland Security.Texas man Charged with Traveling to Missouri for Illicit Sex with ChildrenRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Texas man has been charged in federal court with traveling to Missouri to engage in illicit sex with two minor sisters whose “father” (an undercover officer) he met online.
John Paul Christian, 40, of Texas, was charged in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo., on Wednesday, March 5, 2014.
According to an affidavit filed in support of the federal criminal complaint, a Kansas City Police Department detective created an undercover profile on an online social media site. Christian contacted him on Feb. 19, 2014, the affidavit says, and he told Christian that he had two daughters (11 and 15 years old) with whom Christian could have sex for $400. Christian allegedly replied that he would pay to have sex with both of them.
Christian sent a text message to the undercover officer, the affidavit says, informing him that he had purchased an 18-karat gold “Hello Kitty” necklace and earrings and an iPod as gifts for the girls. On Feb. 26, 2014, Christian allegedly sent a text message with details about the sexual acts he wanted to perform on the 11-year-old daughter. Christian allegedly asked about the 15-year-old daughter joining in as well, for a total of “$400 for both girls.”
On Feb. 28, 2014, Christian allegedly wired $200 to the undercover detective, which was half of the amount he was going to pay to have sex with the two sisters.
According to the affidavit, Christian said he was going to drive to Kansas City on Saturday, March 1, 2014, and texted updates of his travel during the day. (Law enforcement officers later found evidence in his hotel room that he had flown from Texas to Kansas City.)
At about 4:34 p.m. on Saturday, March 1, 2014, Christian sent a text message saying he had arrived in Kansas City and was at the airport, the affidavit says. The undercover detective provided an address and arranged for them to meet at a nearby apartment complex. Christian arrived in a taxi at about 8:10 p.m. and was arrested as he got out of the taxi.
When he was taken into custody, Christian was in possession of two bags. One of the bags contained a “Hello Kitty” backpack doll, two “Hello Kitty” underwear outfits for young girls, two pairs of young girls’ panties, two cans of Red Bull, rope necklaces, Q-Tips and a teal iPod Nano with headphones. The other bag contained an Acer Chromebook laptop computer with power cables, a Samsung flip phone, and a bottle of Astroglide lubricant.
When officers searched Christian’s hotel room, they found a notebook with what appears to be a letter written to the 15-year-old daughter. According to the affidavit, the letter details the various sex acts that Christian was going to be engaged in with the sisters. Christian allegedly wrote that he wanted to get the 15-year-old girl pregnant so that they could have a “little baby girl together” that they in turn would sexually molest.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, 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."Lee's Summit Firm Pleads Guilty to Money Laundering, Must Pay $370,000 to VictimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., company pleaded guilty in federal court today to engaging in money laundering by conducting financial transactions with funds derived from a wire fraud scheme.
D&D Advisors, LLC, located in Lee’s Summit and represented in court by manager David Vorbeck, pleaded guilty before U.S. Chief District Judge Greg Kays to money laundering.
Beginning in 2002, D&D Advisors served as manager for several LLCs that were created by Dean McBride, a financial planner and licensed insurance agent, to manage life settlement investments.
Three client investors are cited as victims in today’s plea agreement. They entered into investment transactions in which they provided a total of $370,000, which they understood to be secured by two life insurance policies, each having a face death benefit amount of $500,000. They loaned money to Dean McBride and his company, Cowboy Financial Advisors, LLC, with the principal to be repaid from the proceeds of the sale of the two insurance policies or the proceeds from the death benefits of the two insurance policies. However, none of the victims ever received any proceeds.
The specific act of wire fraud admitted in today’s plea agreement involves one of the companies managed by D&D Advisors. The company, Philley Insurance, LLC, sold one of the insurance policies that had been used to guarantee the three investments. Philley Insurance sold the policy to Milestone, an investment company, for $95,000. Philley Insurance made fraudulent claims in its contract with Milestone, which led Milestone to believe that no other entity or person had been promised proceeds of the death benefits and that no other entity or person had a security interest in the policy. However, Philley Insurance knew when it entered into the contract with Milestone that several other investment clients had been promised proceeds from the policy or security interests in the policy. Milestone wired $95,000 to the bank account of D&D Advisors; the other client investors were never paid what they had been promised.
Under the terms of today’s plea agreement, D&D Advisors must pay $370,000 in restitution to its victims. D&D Advisors must surrender all governmental licenses and file a notice of dissolution within seven days of the sentencing hearing, which has not yet been scheduled. D&D Advisors may conduct only those activities necessary to wind up its affairs, then must file articles of termination.
This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.Independence Man Pleads Guilty to Placing Hoax Bomb on City BusRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to placing a hoax explosive device on a public bus in Independence.
Scott Gene Bradley, 37, of Independence, pleaded guilty before U.S. Chief District Judge Greg Kays to the hoax.
By pleading guilty today, Bradley admitted that he left a suspicious-looking package, designed to look like a bomb, on an IndeBus, part of the public bus service that provides transportation services in Independence. The hoax device was a black lock box with a cell phone taped to the top and a wire running from the cell phone into the interior of the metal box.
An IndeBus driver found the package, which was in a reusable fabric grocery-type bag, under a rear passenger seat on Aug. 10, 2013. The driver believed a passenger had left the bag under the seat and placed it in the front of the bus under the dash area. Upon arriving back at the bus terminal at the end of her shift, the driver left the bag on the bus and exited, intending to report the bag. The bus company does not operate on Sundays and when that driver returned to work on Monday, she had forgotten about the bag.
A second driver drove the bus during the following week. On Thursday, Aug. 15, 2013, upon exiting the bus at end of the day, the second driver noticed the bag. Believing it belonged to another driver or passenger, the second driver took the bag into the bus maintenance area. The driver set the bag down and left for a meeting.
The next morning, Friday, Aug. 16, 2013, the bag was discovered by maintenance personnel, one of whom had prior military experience and immediately recognized the cell phone and box as a possible improvised explosive device. A maintenance worker removed the bag from the building and placed it outside in the parking lot area. The bus company notified law enforcement.
Over the course of several hours, Independence bomb squad personnel, in conjunction with FBI bomb technicians, were able to determine the suspicious package was a hoax device constructed to look like a real improvised explosive device. Agents determined that the phone taped to the top of the black box was owned by Bradley.
When agents interviewed Bradley, he admitted to putting the hoax device on the bus. Bradley told agents he created the hoax device because he was frustrated with several aspects of his life, including how the IndeBus did not run on schedule. Bradley also told agents that he created a second hoax bomb, which he intended to place in the U.S. Postal Service slot at a grocery store to disrupt the U.S. mail. Bradley explained that he did not go forward with that plan because he discovered that the mail slot area at the grocery store has surveillance cameras.
Under federal statutes, Bradley is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Casey. It was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Independence, Mo., Police Department, the Independence Fire Department, the Lee’s Summit, Mo., Police Department, the Lee’s Summit Fire Department, the Jackson County, Mo., Sheriff’s Department and the National Guard.Ferrelview Man Pleads Guilty to his Role in Natinowide Child Porn Ring, Faces 40 Years in PrisonRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Ferrelview, Mo., man pleaded guilty in federal court today to using four young victims to produce child pornography as part of a nationwide child pornography ring.
Raymond M. Appling, 31, of Ferrelview, pleaded guilty before U.S. District Judge Gary A. Fenner to four counts of producing or attempting to produce child pornography. Under the terms of today’s plea agreement, Appling will be sentenced to 40 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
By pleading guilty today, Appling admitted that he took pornographic photos and video of four child victims, which he shared with others.
According to today’s plea agreement, FBI agents had identified two suspects in Colorado and in San Diego, Calif., that linked Appling to the child pornography ring. Detectives with the Kansas City, Mo., Police Department executed a search warrant at Appling’s residence on Feb. 8, 2012, and seized computers, computer media and a camera. In an interview with the detectives, Appling identified a third member of the child pornography ring located in Pennsylvania. The other members of the child pornography ring are being prosecuted in those jurisdictions.
Appling admitted that he took a child victim, identified as Jane Doe #1, to visit the San Diego suspect, whom he knew had a sexual attraction to minors. Appling also took pornographic photos of Jane Doe #1 when she was eight years old.
Appling also took photos of a second child victim, identified as Jane Doe #2. Appling took photos of Jane Doe #1 and Jane Doe #2 together in the shower. Jane Doe #2 also told investigators that she had met the San Diego suspect at Appling’s home.
Appling took photos of a third child victim, identified as Jane Doe #3, while she was asleep on his couch. A series of photos depicts Appling moving Jane Doe #3’s clothes so that she is exposed, and Appling touching her.
Appling also produced a movie of a 12-year-old victim, identified as Jane Doe #4, while she was undressing and getting ready to take a shower.
A forensic examination of Appling’s computers, cameras, and computer media determined that an external hard drive had been wiped and reformatted. There was evidence on the external hard drive which indicated that videos with a sexual theme (including child pornography) were once on the hard drive. Evidence indicated that some of the movies that were once on the external hard drive were sent through the use of an encrypted instant messaging program. In addition, a large number of Yahoo! messenger chat fragments were recovered from several log files from Feb. 4, 2011 through July 5, 2011. In many of the chats the participants (including Appling and the other suspects) stated that they were actively engaged in sexual abuse and/or child pornography. There were also several unidentified participants engaged in the online chats.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. 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."Cassville Man Charged with Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Cassville, Mo., man was charged in federal court today with receiving and distributing child pornography over the Internet.
Matthew Casas, 25, of Cassville, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo. Casas remains in federal custody.
According to an affidavit filed in support of today’s federal criminal complaint, a business in Monett, Mo., contacted the local police department when a customer who rented a smart TV notified them he discovered child pornography stored on the device’s memory. Law enforcement officers reviewed the images on the set, which were created by a digital camera and appeared to be homemade pictures of an adult male performing sexual acts on a female no older than 12 to 18 months. It did not appear the images had been obtained from the Internet.
In February 2014, officers received several cybertips from the National Center for Missing and Exploited Children that a person was posting images of child pornography to online social media accounts. All of the images depicted children, from infancy to 10 years old, engaged in sexual poses or involved in sexual acts with an adult or each other. Several of the images from the TV were identical, or depicted other sex acts between the infant and adult male, with the images posted online. There were many more images posted online, including numerous images know to be commercially available and actively traded among child pornography collectors and viewers.
Investigators learned that those images were posted from a computer at Casas’s residence. Officers executed a search warrant at the residence on Feb. 28, 2014.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Monett, Mo., Police Department, the Cassville, Mo., Police Department and the Barry 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."Neosho Man Pleads Guilty to Embezzling $4.9 Million from his EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man pleaded guilty in federal court today to stealing more than $4.9 million from his employer.
David VanWinkle, 60, of Neosho, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to wire fraud, money laundering and failure to pay taxes.
VanWinkle was the comptroller for Frontier Leasing Incorporated (FLI) in Joplin, Mo. By pleading guilty today, VanWinkle admitted that he stole $4,911,621 from FLI between June 2008 and December 2013, which he spent on personal expenses and gambling.
Based on a report from a financial institution, federal agents began investigating unusual deposits VanWinkle made into his business accounts for two businesses, VanWinkle Accounting and VanWinkle Farms.
VanWinkle, acting as the comptroller for FLI, received payments from FLI’s customers in the form of checks. VanWinkle deposited some of those checks into FLI’s legitimate business accounts, but deposited other checks into another checking account under the name of FLI that VanWinkle had opened at another bank. VanWinkle was the sole person on this secret account; no one else was aware that FLI had the account and VanWinkle was not authorized to open an account or deposit any of FLI’s customer payment checks into the account.
VanWinkle admitted that he withdrew money from the secret bank account to deposit into his business accounts. The embezzled money was then spent on VanWinkle’s personal and gambling expenses.
According to the indictment, VanWinkle failed to report the embezzled funds from FLI on his personal income tax returns he filed with the Internal Revenue Service for the years 2008, 2009 and 2010. VanWinkle did not file income tax returns for the years 2011 and 2012, the indictment says, and therefore did not report the embezzled funds during these years, either.
In addition, VanWinkle was responsible for collecting payroll taxes for FLI and paying over those payroll taxes to the IRS. VanWinkle withheld those taxes but failed to turn them over to the IRS. VanWinkle admitted that he collected, but failed to pay over, a total of $435,896 in federal tax, Social Security and FICA withheld from FLI employees’ paychecks.
Under the terms of today’s plea agreement, VanWinkle must forfeit to the government $4,911,621, a 2013 Holland tractor, a 2007 Hummer H3, a 2012 John Deere no-till seed drill, and $28,086 that was seized from various bank accounts.
Under federal statutes, VanWinkle is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $750,000. 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 IRS-Criminal Investigation.Jury Convicts Three KC-area Men for Nearly $1 Million Conspiracy to Steal Trucks and Trailers, CargoRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Mo., area men were convicted in federal court today for their roles in a conspiracy to steal nearly $1 million worth of trucks and trailers and their cargo.
Kenneth Ray Borders, 43, of Kansas City, Mo., Jon Dirk Dickerson, 56, of Raytown, Mo., and his son, Kyle Wayne Dickerson, 31, of Holden, Mo., were found guilty of the charges contained in a Dec. 14, 2012, federal indictment. They were taken into federal custody immediately after the verdicts were returned by the jury.
Evidence presented during the trial indicated that all three of the co-defendants participated in a conspiracy that involved the theft of commercial trucks and trailers and their cargo in Missouri, Kansas, Florida, Arkansas, Oklahoma, and Nebraska. They worked together to steal trucks, trailers, and cargo and then dispose of them. Sometimes they used the trucks and trailers themselves to make money by hauling loads for customers and sometimes they sold the stolen trucks and trailers.
The conspiracy involved the thefts of five Freightliner trucks and 17 trailers between 2005 and 2011. The stolen trailers included refrigerated trailers containing such cargo as 39,000 pounds of meat, 565 boxes of beef valued at $149,790, $125,000 worth of frozen ribs, and several refrigerated trailers that each contained tens of thousands of dollars’ worth of frozen chicken, including a load of frozen chicken wings valued at $59,706. Also stolen were utility trailers containing such cargo as Budweiser beer valued at $16,657, Nike shoes valued at $217,353 and 21,018 pounds of Little Sizzler sausages.
Stolen cargo was sold cheaply to anyone who would buy it. Some of the cargo was sold out of the back of the trailer; some of it was sold to a tow truck driver or a convenience store operator to resell. For example, co-defendant Myron Piggie, 52, of Kansas City, Mo., earlier pleaded guilty to possessing stolen property. Piggie admitted that he accepted 12 pallets of stolen Budweiser beer products (valued at approximately $7,566). Piggie agreed to sell the beer at his store, MP Convenience Store in Kansas City, and split the profits with conspirators. However, he learned that the police were aware he had the stolen beer. Because he did not want to be found to be in the possession of the stolen beer, Piggie gave it all away, selling little or none of it.
Borders was involved in stealing the trucks, trailers, and cargo. He sold the cargo to others to resell, sometimes fronting the money by allowing his “customer” to pay him after they sold the product. Borders used some of the stolen trucks and trailers himself to make money by delivering cargo.
Jon Dickerson often had the first right to purchase stolen trucks and trailers. In fact, Borders actually had a “shopping list” from Dickerson listing the trucks and trailers that he wanted, so that Borders could keep an eye out for them and steal them if the opportunity presented itself.
Jon Dickerson and his son, Kyle Dickerson, also were involved in stealing trucks and trailers. They used them in their own trucking business, sometimes just for replacement parts with the remains sold for scrap. Kyle Dickerson had the tools, ability, and willingness to disguise the stolen nature of the trucks and trailers by altering their Vehicle Identification Numbers (VINs) so that they could be used in their trucking business without alerting authorities when they were stopped or inspected.
The Dickersons reduced their costs of doing business by stealing trucks and trailers themselves, or by buying stolen trucks and trailers from Borders, at a fraction of their fair market value. Since they had little financial investment in the stolen trucks and trailers, and knew that they had a readily-available and cheap supply of stolen trucks and trailers, they had little incentive to maintain and repair their fleet. As a result, their fleet wore out and had safety issues, such as problems with brakes and tires. When their fleet wore out, they simply replaced them with more stolen trucks and trailers.
The Dickersons did not bother to maintain and repair their trucks and trailers but continued to operate them in interstate commerce. As a result, DOT/FMCSA and other law enforcement repeatedly cited their company and drivers for failing inspections and violating regulations. The company's compliance reviews led to unsatisfactory safety ratings which led to a total of $450,000 in fines and numerous “out of service orders” directing them to cease operating in interstate commerce. The Dickersons just ignored the orders and the fines.
At a DOT roadside inspection, a Dickerson truck, trailer, or cargo could be delayed, or even impounded, if their poor record or condition prompted too many questions. The Dickersons’ scheme, however, included a way to downplay this risk. The Dickersons operated what is known in the industry as “chameleon carriers.” They simply abandoned their old company – along with its "baggage" of safety violations, “out of service” orders, and unpaid fines – and began operating with a new company under a new name. Thus, after Jon Dickerson’s company Fish and More was subject to more than $150,000 in fines and four orders to cease interstate transportation, he began operating under the name D&T Trucking. After D&T Trucking was subject to nearly $300,000 in fines and 17 orders to cease interstate transportation, the United States obtained a civil injunction and default judgment, and D&T Trucking was permanently enjoined from operating in interstate commerce. At that point, Kyle Dickerson got a DOT number for Night Line Trucking and Repair. Night Line Trucking and Repair received an unsatisfactory safety rating and an order to cease interstate transportation. The Dickersons then started operating under the name Nightline Trucking, LLC.
In addition to Piggie, co-defendants Christopher Dwight Turner, 45, and Michael O’Neal Foster, 55, both of Kansas City, Mo., pleaded guilty to receiving stolen goods. Turner admitted that he received approximately $386,932 worth of stolen meat. Foster admitted that he received a stolen Freightliner Classic XL truck, which he and others drove out of Missouri to both California and Indiana. Foster used it in his business, Kembeh Transportation.
In two separate, but related, cases, Jaccard Fears,46, of Raymore, Mo., and Roy Lynn Parvin, 54, of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy. Fears was employed by the trucking businesses operated by the co-conspirators. He was paid by Borders and Foster to remove emblems, decals, and other ownership information from stolen trucks and replace them with emblems depicting they were owned by Kembeh Trucking (Foster's Company) and others. Parvin admitted that he purchased multiple loads of stolen property from Borders and Turner, including stolen meat, dog food, and appliances totaling more than $6,000. Parvin was also in possession of beef stolen in Nebraska and sausage stolen in Kansas.
In addition to the conspiracy, Borders was found guilty of four counts of aiding and abetting the possession of stolen goods, one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Jon Dickerson was also found guilty of three counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Kyle Dickerson was also found guilty of one count of aiding and abetting the transportation of stolen vehicles, two counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated over a three-day period before returning the verdicts, ending a trial that began February 18, 2014.
Under federal statutes, Borders is subject to a sentence of up to 65 years in federal prison without parole, plus a fine up to $1,750,000. Jon and Kyle Dickerson are each subject to a sentence of up to 45 years in federal prison without parole, plus a fine up to $1,250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office. The court will determine forfeiture amounts at a later date.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod and Assistant U.S. Attorney Cindi S. Woolery. It was investigated by the Department of Agriculture – Office of Inspector General, the FBI, the Kansas City, Mo., Police Department, the National Insurance Crime Bureau, the National White Collar Crime Center, the Mid-States Organized Crime Information Center, Travelers Investigative Services, the Missouri State Highway Patrol, the Florida State Highway Patrol, and the U.S. Department of Transportation, Federal Motor Carrier Safety Administration.Iowa Company Pleads Gulty to Releasing Contaminated Water into Duenweg Sewer; Must Pay Fine and Issue Public ApologyRead the Press Release
February 28, 2014SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Des Moines, Iowa, company pleaded guilty in federal court today to releasing thousands of gallons of gasoline-contaminated water into the city sewer system of Duenweg, Mo.
Seneca Companies, Inc., pleaded guilty before U.S. Magistrate Judge David P. Rush to the negligent introduction of a pollutant or hazardous substance into a publicly owned sewer system without any permit.
Seneca is a petroleum and hazardous materials handling company headquartered in Des Moines. Seneca agreed to repair a gasoline line at Casey’s General Store, 8084 E., 7th Street, in Duenweg in December 2010. This gasoline line failure had allowed gasoline to accumulate into a containment sump on Casey’s property. Seneca employees were responsible for safely repairing Casey’s gasoline line failure and safely disposing of any hazardous material in conformity with state and federal regulations.
On Dec. 16, 2010 Seneca employees pumped gasoline-contaminated water out of Casey=s containment sump and into the sewer system, negligently releasing a hazardous substance or pollutant (water tainted with gasoline), which was an illegal discharge.
Approximately 30 to 40 minutes later Casey’s employees detected a strong odor of gasoline and immediately notified the Duenweg Fire Department and the Seneca crew. Casey’s employees and Seneca’s crew immediately began pouring buckets of water into the sinks and floor drains to combat the fumes.
Employees of the Rosebrough General Store, located downstream from Casey’s, also detected strong gasoline odors inside their store and immediately vacated the store and notified the Duenweg Fire Department. The Duenweg Fire Department responded and immediately requested assistance from Joplin, Mo., fire and hazmat personnel, who also responded.
Joplin Fire Department personnel conducted atmospheric testing from various down flow sewer manholes from Casey’s and confirmed gasoline vapors above the lower explosive limit in the sewer under the Duenweg elementary school, causing the 150 students to be immediately evacuated from the school. The Duenweg and Joplin fire departments pumped large quantities of water into the sewer system to lower or dilute the gasoline vapors.
While it is impossible to know the exact amount of gasoline and water that were discharged into the public sewer, a Missouri Department of Natural Resources estimate is that between 7,500 and 10,000 gallons were released into the city system.
Today’s plea agreement notes that Seneca had been involved in this type of repair work at Casey’s in the past. In December 2009, Seneca applied to the city of Joplin for a permit to release treated water at the Casey’s location in Duenweg. Seneca’s application stated that, “due to the nature of gasoline sales at the site, the groundwater will be treated onsite with a portable air stripper system before discharging to the City’s sanitary sewer system.” Seneca received the permit to perform the work and completed it properly, using precisely the procedures they should have used on Dec. 16, 2010.
Under the terms of today’s plea agreement, Seneca must pay a fine of at least $75,000, up to $200,000, as well as restitution during a term of five years of probation. Seneca must conduct annual training for all employees engaged in the repair of underground gasoline storage tanks on the proper and lawful disposal and removal of pollutants or hazardous materials from underground gasoline storage tanks. The company must also publish a public apology consisting of an advertisement in the Joplin Globe for seven consecutive days. Public dissemination of Seneca’s negligence, says the plea agreement, will provide a deterrent effect for other potential violators of the Clean Water Act.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the U.S. Environmental Protection Agency – Criminal Investigation Division, the Duenweg, Mo., Fire Department, the Joplin, Mo., Fire Department and the Missouri Department of Natural Resources.Willard Man Indicted for $1.9 Million Conspiracy to Distribute K2 at Bilbo's Earth StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Willard, Mo., man has been indicted by a federal grand jury for his role in a $1.9 million conspiracy to distribute synthetic drugs through his business in Battlefield, Mo.
John Waddell, 49, of Willard, was charged in a six-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Feb. 25, 2014. Waddell and his wife owned and operated Bilbo’s Earth Store at 4032 W. Lark, Suite #F in Battlefield under their company Johrri Enterprises, LLC.
The federal indictment alleges that Waddell participated in a conspiracy to distribute a controlled substance analogue in Greene County, Mo., from April 1, 2011, to Sept. 25, 2013. Waddell is also charged with maintaining a place in Battlefield, Mo., for the purpose of distributing a controlled substance analogue and with possessing several firearms in furtherance of the drug-trafficking conspiracy. Waddell was allegedly in possession of a Springfield Armory .40-caliber pistol, a Bersa 9mm pistol and a Springfield Armory 9mm pistol.
The indictment also charges Waddell with one count of money laundering and two counts of structuring a currency transaction to evade reporting requirements.
The indictment also contains forfeiture allegations, which would require Waddell to forfeit to the government any property obtained from the proceeds of the alleged violations or any property used to commit the alleged violations, including $1,928,204 (which represents the amount involved in the conspiracy); Waddell’s residential property in Willard; Waddell’s commercial property in Springfield; 83 electric, acoustic and bass guitars; a five-piece drum set; dozens of speakers and amplifiers; several guitar cases; three pistols; $32,271 seized from Waddell’s residence; a certificate of deposit in the amount of $100,000; $216,535 in the bank accounts of Johrri Enterprises, LLC, dba Bilbo's Earth Store, and $1,323 in Waddell’s bank account.
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 Ami Harshad Miller and Assistant U.S. Attorney Cindy Hyde. It was investigated by the Drug Enforcement Administration, COMET (the Combined Ozarks Multi-Jurisdictional Enforcement Team), the Food and Drug Administration, IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Greene County, Mo., Sheriff’s Department.
KC Man Pleads Guilty to Stealing $330,000 from ATMsRead 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 stealing more than $330,000 from automated teller machines (ATMs) that he was hired to maintain.
Anthony T. Civella, Jr., 46, of Kansas City, waived his right to indictment by a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to bank larceny and money laundering.
From 2011 through 2013, Civella owned and operated a company called C Management Group, LLC, which serviced ATMs in the Kansas City, Mo., metropolitan area. The money in the ATMs belonged to U.S. Bank.
By pleading guilty today, Civella admitted that he stole money from the ATMs by obtaining a maintenance code to access the machines. The government believes that Civella stole approximately $330,040. Civella moved money between the ATM machines in order to conceal the theft.
Civella comingled the stolen money from the ATMs by depositing most of the cash into his personal checking account at the Holy Rosary Credit Union. Civella admitted that he deposited money from the bank larceny scheme into his personal checking account in order to conceal or disguise the location and source of the proceeds of the bank larceny.
Under federal statutes, Civella is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $750,000 and an order of restitution. Civella must forfeit to the government a $330,040 money judgment. 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, IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Former Bank Employee Pleads Guilty to $650,000 Bank Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former UMB Bank employee pleaded guilty in federal court today to embezzling more than $650,000 in a bank fraud conspiracy.
Lisa L. Taylor, 54, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a June 20, 2013, federal indictment.
Taylor was employed by UMB Bank from May 2006 until October 2010 as a closing account specialist. Taylor was terminated when a corporate fraud investigation discovered she had fraudulently embezzled UMB funds. Taylor admitted today that she used her position to generate 377 fraudulent checks totaling $650,659.
In addition to Taylor, 11 friends and family members have also pleaded guilty to their roles in the bank fraud conspiracy: Kara L. Williams, 33, Shameeka N. Whitehead, 31, Rodney C. Austin, 49, Johnnie L. Coleman, 52, Roshana A. Franklin, 22, Antonio O. Malone, 25, and Ralph Broadus, 59, all of Kansas City, Mo., William D. Moore, 24, of Grandview, Mo., Stephen A. Combs, 27, and Geoffrey N. King, 30, both of Olathe, Kan., and Lakisha S. Weathers, 29, of Springfield, Mo.
As part of Taylor’s job duties at UMB she was responsible for collecting “charge off” amounts when a former customer’s account had been closed. Occasionally a deposit would come in for a closed account and be deposited to a general UMB account. Taylor was responsible for requesting a refund check to be issued from the general UMB account and sent to the former customer at their last known address. These refund checks were sent in the form of cashier checks that required approval of a bank officer. Taylor mixed in fraudulent refund check requests with these legitimate refund requests.
Over the course of the fraud scheme, which lasted virtually the entire time she worked at the bank, Taylor requested checks payable to her friends and family, who cashed or deposited the checks. They kept a portion of the proceeds and returned a portion to Taylor.
Taylor also had checks made payable to fictitious names, to which she forged the signatures and deposited into her bank account. UMB records revealed that Taylor personally negotiated 66 fraudulent UMB bank checks for a total of $96,793.
Under the terms of today’s plea agreement, Taylor must forfeit to the United States a $650,659 money judgment. Under federal statutes, Taylor is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Secret Service.
Waynesville Man Indicted for Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Waynesville, Mo., man was indicted by a federal grand jury today for robbing Security Bank of Pulaski County in St. Robert, Mo.
Arthur John Green, 42, of Waynesville, was charged in an indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Green robbed the Security Bank of Pulaski County on Feb. 20, 2014.
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 Carney. It was investigated by the Pulaski County, Mo., Sheriff’s Department and the FBI.Jury Convicts KC Man of Drug-trafficking, Illegal Firearms Follwoing Shooting, Chase; Faces at least 60 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of drug-trafficking and illegally possessing firearms after shooting at pursuing police officers during a foot chase that ended in his arrest.
Antonio M. Taylor, 30, of Kansas City, was found guilty of all charges contained in an Aug. 8, 2012, federal indictment.
Taylor was found guilty of two counts of possessing crack cocaine with the intent to distribute and one count of possessing crack cocaine, marijuana and PCP with the intent to distribute. He was found guilty of three counts of possessing firearms in furtherance of drug-trafficking crimes and three counts of being a felon in possession of a firearm.
According to evidence presented during the trial, law enforcement officers were conducting surveillance on Taylor’s residence on July 2, 2012. Taylor, who had an active Jackson County warrant for a violation of felony probation, left the apartment and walked toward a vehicle in the parking lot. When police officers approached him, Taylor ran away and the officers pursued him on foot.
During the pursuit, Taylor changed directions and began running toward a pursuing officer. Taylor was holding an FNH 9mm semi-automatic handgun and he fired at least one round at the officer, who returned fire. The officer saw Taylor drop a large bag of crack cocaine (later determined to be 32.9 grams) as he ran. The officer took cover near a residence but continued to engage in the foot pursuit. When the officer rounded the edge of the residence, he saw Taylor attempting to climb a fence near the rear of the residence. Taylor fired his handgun again at the officer, who again returned fire. Taylor jumped the fence and stumbled and fell as he attempted to get to his feet. Taylor again turned toward the officer with the firearm still in his hand. The officer fired his firearm two more times at Taylor, at which time Taylor dropped his firearm. Taylor, who suffered several gun-shot wounds, was taken into custody and transported to the emergency room. The officer was not injured.
Prior to this incident, police officers saw Taylor conducting a drug transaction on March 7, 2012. Officers approached Taylor’s car and Taylor drove off. A high speed chase ensued and Taylor committed numerous traffic violations during the chase. Taylor jumped out of the Jeep in the area of 81st and Brooklyn and ran. Officers searched for Taylor and found him hiding in a storm drainage area. Officers found a loaded Glock .40-caliber pistol on the ground nearby. When they searched Taylor’s vehicle, officers found a plastic baggie that contained 20.62 grams of crack cocaine.
On June 5, 2012, police officers were called to a vacant house in response to a report of a suspicious vehicle. They contacted Taylor, the driver and sole occupant of the vehicle. When officers asked Taylor to step out of the vehicle, he put the vehicle in drive and drove into the back yard of a residence. Taylor crashed the vehicle head-on into a cinder block wall and ran from the scene. Officers found 80 grams of marijuana, a brown bottle containing PCP, .8 gram of crack cocaine, 12 unknown pills, and a Glock .40-caliber pistol in the 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. Taylor has a prior felony conviction for shooting from a vehicle, four prior convictions for assault and five prior convictions for armed criminal action.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdicts, ending a trial that began Monday, Feb. 24, 2013.
Under federal statutes, Taylor is subject to a mandatory minimum sentence of 60 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman and Special Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Five Joplin Residents Indicted for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five Joplin, Mo., area residents have been indicted by a federal grand jury, in separate cases, for fraudulently receiving (or applying for) federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Dustin Joe Showalter, 36, Fred Lewis Pickett, Jr., 34, Brittany Aulden Barnes, 22, Gary L. Mitchell, Jr., 34, and Russell Lamar Green, 35, all currently or formerly of Joplin, were charged in a series of indictments returned by a federal grand jury in Springfield, Mo., on Tuesday, Feb. 25, 2014.
The federal indictments charge each of the five defendants with disaster fraud for making false statements to the Federal Emergency Management Agency (FEMA) in applications for disaster benefits.
Showalter, Pickett and Barnes are each charged in separate indictments with two counts of disaster fraud. Mitchell and Green are each charged in separate indictments with one count of disaster fraud and one count of making false statements.
USA v. Showalter
According to the indictment, Showalter fraudulently received disaster benefits by claiming to have lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact he did not live at that residence. The indictment also alleges that Showalter made false statements to FEMA that aided and abetted Pickett’s fraudulent claim for disaster benefits.
USA v. Pickett
According to the indictment, Pickett fraudulently received disaster benefits by claiming that he relocated from one primary residence to another primary residence in Joplin following the May 22, 2011, tornado, when in fact he did not move to the second residence. The indictment also alleges that Pickett fraudulently filed for disaster benefits by claiming to have purchased a 1993 Nissan Maxima sedan from Chick’s Towing, when in fact he did not purchase a 1993 Nissan Maxima sedan from Chick’s Towing.
USA v. Barnes
According to the indictment, Barnes fraudulently received disaster benefits by claiming to have lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact she did not live at that residence. The indictment also alleges that Barnes fraudulently filed for disaster benefits by falsely claiming she lost personal property from that residence.
USA v. Mitchell
According to the indictment, Mitchell fraudulently applied for disaster benefits by claiming that he lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact he did not live at that residence. The indictment also alleges that Mitchell made false statements to FEMA when he claimed to live at that address.
USA v. Green
According to the indictment, Green fraudulently applied for disaster benefits by claiming that he lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact he did not live at that residence. The indictment also alleges that Green made false statements to FEMA when he claimed to have lost personal property from that residence.
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 Steven M. Mohlhenrich. They were investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.Kansas Woman Indicted for Stealing $543,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bucyrus, Kan., woman was indicted by a federal grand jury today for embezzling more than $543,000 from her employer.
Susan Elise Prophet, 45, of Bucyrus, was charged in a 16-count indictment returned by a federal grand jury in Kansas City, Mo.
Prophet worked as a bookkeeper for Dorfman Plumbing Supply Company in Kansas City, Mo., from December 2012 until she was fired eight months later in August 2013. (The company has since been sold to Ferguson Enterprises, Inc., a national distributor of residential and commercial plumbing supplies.) Prophet was known to her employer as “Susan Morriss.” She touted that she was the wife of a federal law enforcement agent, which was true at or close to the time she was hired (Morriss is the last name of her now-estranged husband).
According to the indictment, Prophet engaged in a scheme to embezzle at least $543,034 from Dorfman Plumbing Supply Company that began soon after she was hired and continued until she was fired. Prophet allegedly wrote 105 unauthorized checks drawn on the company’s bank account for her benefit. Prophet was not an authorized signatory for the company, so she forged the owner’s signature on each of the checks.
Prophet allegedly opened multiple bank accounts using a bogus Social Security number and a misspelled variation of her last name. She paid her personal creditors with the checks, cashed the checks or deposited them into her personal accounts, the indictment says. Among those checks, the indictment says, were two checks payable directly to her landlord. She allegedly used the funds for her personal enrichment, purchasing trucks, a car, a motorcycle, travel, furniture, electronics, and other items. She also withdrew large amounts of cash, according to the indictment.
In addition to the fraudulently-opened bank accounts, the indictment alleges that Prophet took other steps to conceal her scheme, such as altering the company’s financial records. According to the indictment, Prophet altered the company’s ledger to show that vendors had been paid when, in fact, they had not been paid. When vendors attempted to collect, Prophet allegedly answered the calls and hid the claims from her employer. As vendors began to freeze the company’s accounts, the indictment says, Prophet created new checks and forged her employer’s name on the checks to pay the most critical invoices.
According to the indictment, Prophet spent at least $130,424 on vehicle-related purchases, including a 2013 Dodge Ram 1500 Sport; a 2013 Harley Davidson FLTRX Road Glide motorcycle; a 2008 Ford Focus; a 2005 Chevrolet Tahoe; and a 2003 Chevrolet Trailblazer. She allegedly shared the vehicles with her boyfriend and adult children. Prophet withdrew at least $86,000 from her accounts, the indictment says, and wrote nearly $21,000 in checks to herself or to cash. She allegedly used the embezzled funds to pay her rent and pay down her debts, and allegedly spent at least $15,096 at restaurants, $12,743 on travel, $6,703 on electronics, and $9,221 at Nebraska Furniture Mart.
Today’s indictment charges Prophet with two counts of bank fraud, one count of wire fraud, one count of money laundering and 11 counts of aggravated identity theft.
The indictment also contains a forfeiture allegation, which would require Prophet to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $543,034 the five vehicles.
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 Daniel M. Nelson. It was investigated by the FBI and the Kansas City, Mo., Police Department.Former Union President Indicted for Embezzling $185,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees was indicted by a federal grand jury today for a wire fraud scheme in which he embezzled more than $185,000 from the union local.
Jesse E. Morgan, 38, of Kansas City, Mo., was charged in a 29-count indictment returned by a federal grand jury in Kansas City. Morgan was president of the American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from 2008 through Oct. 20, 2012.
Today’s indictment alleges that Morgan engaged in a wire fraud scheme from Nov. 1, 2008, through Oct. 22, 2012, to steal from AFSCME Local 1707. The federal indictment charges Morgan with 29 counts of wire fraud.
According to the indictment, Morgan wrote $9,700 in unauthorized checks from the union local’s bank account, payable to himself. Morgan allegedly made $69,540 in electronic payments from the AFSCME Local 1707 bank accounts to others, for his own benefit. Morgan allegedly made $56,231 in unauthorized ATM withdrawals from AFSCME Local 1707 bank accounts. Morgan allegedly made $50,091 in unauthorized counter withdrawals from AFSCME Local 1707 bank accounts.
The indictment also contains a forfeiture allegation, which would require Morgan to forfeit to the government any property derived from the proceeds of the alleged wire fraud scheme.
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 Paul S. Becker. It was investigated by the U.S. Department of Labor – Office of Labor-Management Standards.
Two Truck Drivers Plead Guilty to Transporting an Individual to Texas for ProstitutionRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Joseph, Mo., area commercial truck drivers – one of whom is a registered sex offender – have pleaded guilty to transporting an individual across state lines for prostitution.
Tony Eugene Wardlow, 55, of St. Joseph, pleaded guilty before U.S. District Judge Dean Whipple today to the charge contained in Jan. 30, 2014, federal indictment. Co-defendant Thomas Farrell, 49, of DeKalb, Mo., pleaded guilty on February 7, 2014, to aiding and abetting Wardlow’s transportation of this individual.
Wardlow is a registered sex offender who was convicted in 1997 in Nodaway County, Mo., of two counts of endangering the welfare of a child (involving two separate child victims) and one count of sexual misconduct (involving one of those victims). Wardlow is self-employed as a commercial truck driver, doing business as Prideco, LLC.
Wardlow admitted that he transported an individual (identified as “Child Victim” or “CV”) to Texas to engage in prostitution activity with himself from Sept. 18 to 21, 2011. Wardlow met CV in August 2011 when s/he was working as a prostitute on Independence Avenue in Kansas City, Mo. Wardlow admitted that he took CV to St. Louis, Mo., and Big Spring, Texas to engage in illicit sexual activity.
Farrell admitted that he aided and abetted Wardlow’s transportion of this same individual to Texas, knowing that Wardlow was engaged in prostitution activity with the child victim prior to and during the trip.
Under the terms of today’s plea agreement, Wardlow will be sentenced to 10 years and three months in federal prison without parole. Farrell is subject to a sentence of up to three years in federal prison without parole. Sentencing hearings 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 Prairie Village, Kan., Police Department, the Kansas City, Mo., Police Department, the U.S. Department of Transportation, the Missouri State Highway Patrol and the Overland Park, Kan., Police Department in conjunction with the Human Trafficking Rescue Project.Mexican National Sentenced to 15 Years for Illegal Firearms, MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for his role in conspiracies to distribute a large quantity of methamphetamine and to illegally possess firearms.
Armando Dominguez-Morales, 33, a citizen of Mexico, was sentenced by U.S. District Judge Fernando J. Gaitan to 15 years in federal prison without parole. The court also ordered Dominguez-Morales to forfeit to the government $66,000, which was seized by law enforcement officers.
On Sept. 7, 2012, Dominguez-Morales pleaded guilty to participating in a conspiracy to distribute methamphetamine since January 2008 and to participating in a conspiracy to possess firearms in relation to a drug-trafficking offense.
According to court documents, Dominguez-Morales, an illegal alien, was one of the primary distributors for a drug-trafficking organization that was led by co-defendant Mauricio Ramos-Hernandez, 39, a Mexican national residing in Kansas City, Kan. (who has also pleaded guilty and awaits sentencing). Dominguez-Morales had multiple people selling methamphetamine for him and was a main supplier of the narcotics.
Between Jan. 14, 2009, and Aug. 24, 2010, there were 20 controlled drug purchases from this drug-trafficking organization, totaling nearly 730 grams of actual methamphetamine “ice,” an unusually strong purity and concentration of this addictive controlled substance. In addition to trafficking methamphetamine, Dominguez-Morales engaged in gun trafficking.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives NITRO Task Force and the Drug Enforcement Administration.Two Mexican Nationals Sentenced for Trafficking Cocaine, Meth in Cole, Moniteau CountiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Mexican nationals were sentenced in federal court today for their roles in conspiracies to distribute large amounts of cocaine and methamphetamine in Cole and Moniteau Counties, Mo.
Eloy Castaneda-Gonzalez, 33, and Beroldo Almazan, 34, a permanent resident of the United States, both of California, Mo., were sentenced in separate hearings before U.S. District Judge Fernando J. Gaitan. Castaneda-Gonzalez was sentenced to 15 years in federal prison without parole. Almazan was sentenced to 10 years in federal prison without parole. The court also ordered them to forfeit to the government $52,928, which was derived from the offense.
Both Castaneda-Gonzalez and Almazan pleaded guilty to their role in a conspiracy to distribute methamphetamine and in a conspiracy to distribute cocaine.
According to court documents, a DEA agent learned that Castaneda-Gonzalez wanted to purchase seven kilograms of cocaine from two cooperating sources. The DEA’s cooperating sources agreed to travel to Missouri and deliver the cocaine for $24,000 per kilogram. On June 21, 2012, the cooperating sources directed Castaneda-Gonzalez to meet them at a Jefferson City, Mo., motel.
Castaneda-Gonzalez was accompanied by Almazan and co-defendant Adolfo Almazan-Hernandez, 43, of California, Mo., when he arrived at the motel room. Castaneda-Gonzalez explained that he didn’t have all of the money to purchase seven kilograms of cocaine, but offered to provide the cooperating sources with five pounds of methamphetamine, along with a portion of the money, in exchange for the cocaine. They accepted the offer, and Castaneda-Gonzalez, Almazan and Hernandez left the motel room, stating they would return shortly with the methamphetamine and money.
Approximately one and a half hours later, Castaneda-Gonzalez, Almazan and Almazan-Hernandez returned to the motel room. Castaneda-Gonzalez gave the cooperating sources a package that contained nearly one pound of crystal methamphetamine. A short time later, Hernandez left the room momentarily and returned with a bag containing the remaining four pounds of crystal methamphetamine. Hernandez again left the room and returned approximately 30 minutes later with $20,000 in cash. The cooperating sources then provided Castaneda-Gonzalez with one kilogram of cocaine to inspect, and told him they were going to leave the room to obtain the remaining six kilograms.
Castaneda-Gonzalez became extremely nervous and fled from the room, followed by Almazan, but both were apprehended after a brief foot chase. Almazan-Hernandez was also taken into custody as he walked out of the motel room.
Investigators later located co-defendants Froylan Pedroza-Guadarrama, 30, Victor Hugo De La Roza-Garza, 32, and Jesus Ricardo-Amaya, 28, at a nearby McDonald’s.
Almazan-Hernandez and Ricardo-Amaya have pleaded guilty to the same two charges – conspiracy to distribute methamphetamine and conspiracy to distribute cocaine – and await sentencing. Pedroza-Guadarrama and De La Roza-Garza have pleaded guilty to conspiracy to distribute cocaine and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force and the Jefferson City, Mo., Police Department.
Chillicothe Couple Plead Guilty in $4 Million Theft, Money Laundering, False Tax Return CaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chillicothe, Mo., husband and wife pleaded guilty in federal court today to charges involving the wife’s embezzlement of nearly $4 million from her employer and their jointly filing a false income tax return not claiming the income from the wire fraud scheme.
Donna M. Preszler, 60, and her husband, Terrance W. Preszler, 63, both of Chillicothe, pleaded guilty before U.S. Magistrate Judge Robert E. Larsen. Donna Preszler pleaded guilty to wire fraud, money laundering and filing a false income tax return. Terrance Preszler pleaded guilty to filing a false income tax return.
Donna Preszler was employed at Burdg, Dunham & Associates Construction Corp. (BDA) in Hamilton, Mo., from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico and Canada, primarily building for national retail organizations.
Donna Preszler admitted that she embezzled $3,912,000 in a wire fraud scheme that lasted six years, from June 30, 2006 through June 15, 2012. She also admitted that she conducted financial transactions that involved the proceeds of her criminal activity.
Donna and Terrance Preszler each admitted that they failed to report the fraudulently obtained funds on their federal income tax returns for tax years 2007 through 2012. During that time, the Preszlers filed their federal income tax returns jointly and should have paid $1,236,690 in taxes on their unreported fraudulent income from BDA. For example, the Preszlers claimed their income in 2012 was only $46,863. Including the embezzled funds, according to today’s plea agreements, their income was actually $851,863 and they should have paid an additional $253,641 in taxes.
Donna Preszler utilized her role as accounting manager to add false and fictitious non-taxable payments, such as expense reimbursements, to herself. Donna Preszler transferred approximately $3,912,000 in fraudulent payments to herself and her family.
Donna Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll. Donna Preszler received $137,121 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Donna Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts and otherwise manipulating BDA’s payroll and accounting records.
Under the terms of today’s plea agreements, the Preszlers must forfeit to the government any property derived from the proceeds of the criminal violations, including a money judgment of $3,912,000, two residential lots, two 14kt diamond rings, 10 vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2011 Ford F150, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank accounts and funeral trust accounts. Most of those items have been seized by law enforcement agents.
Under federal statutes, Donna Preszler is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $600,000 and an order of restitution. Terrance Preszler is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000 and an order of restitution. Sentencing hearings 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 Jess E. Michaelsen. It was investigated by the FBI and IRS-Criminal Investigation.Two Men Indicted for Counterfeit $50, $100 BillsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two men were indicted by a federal grand jury today, in separate and unrelated cases, for possessing counterfeit $50 and $100 bills.
USA v. McCuiston
Kevin Glenn McCuiston, 36, of Moberly, Mo., was charged with possessing counterfeit bills in an indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that McCuiston was in possession of 49 counterfeit $50 bills on Dec. 6, 2013.
USA v. Busey
Jackie L. Busey, 28, of St. Joseph, Mo., was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Busey attempted to pass a counterfeit $50 bill in Boone County, Mo., on Oct. 25, 2012. Busey is also charged with possessing 74 counterfeit $50 bills and 17 counterfeit $100 bills on the same day. Busey was arrested near the Fieldhouse Bar in Columbia, Mo.
These cases are being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. They were investigated by the U.S. Secret Service, the Missouri State Highway Patrol and the Columbia, Mo., Police Department.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.Project Save Our ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Kansas City, Mo., man who has been living in Thailand pleaded guilty in federal court to fleeing the United States in 2007 to avoid paying child support.
Randy Lee Essary, 60, of Springfield, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes on Tuesday, Feb. 11, 2014. Essary was a resident of Chon Buri, Thailand, where he was employed as the senior vice president of development for Eclipse Hotels and Development, which is based in Manila, Philippines and in Hong Kong.
By pleading guilty, Essary admitted that he has failed to pay any court-ordered child support for his son for more than eight years, since January 2005. Essary owes $164,891 in child support.
Essary was a resident of Missouri in 1996. On Feb. 9, 1996, the Jackson County Circuit Court ordered him to pay $1,500 in monthly child support payments for his son, who currently resides with his mother in Utah.
Essary’s last documented entry into the United States and exit thereafter was on Sept. 12, 2007, to attend his daughter’s wedding in Illinois. Essary did not fly directly into the United States for the wedding. Instead, Essary flew from Thailand or the Philippines to Canada. Border crossing records confirm Essary then walked across the border from Canada into the United States at Blaine, Wash. He returned to Thailand in the same manner – by walking across the border at Canada and flying back to Thailand.
Essary was arrested at LAX airport when he returned to the United States on Feb. 22, 2012.
Under federal statutes, Essary is subject to a sentence of up to two 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 Jane Pansing Brown. It was investigated by the Department of Health and Human Services, Office of Inspector General.
Project Save Our Children
Project Save Our Children is a multiagency law enforcement initiative that investigates and prosecutes the most egregious child support cases. Its members include investigative analysts from the Department of Health and Human Services, Office of Inspector General, the Administration for Children and Families (ACF) Office of Child Support Enforcement (OCSE), the U.S. Marshals Service, U.S. Attorneys' offices, and the Department of Justice, along with child support agencies across the United States. These entities identify, investigate, and prosecute noncustodial parents who knowingly fail to pay support obligations and meet the criteria for federal prosecution under the Deadbeat Parents Punishment Act. More information about federal child support enforcement is available at http://oig.hhs.gov/fraud/child-support-enforcement/Jefferson City Man Indicted for Child PornRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was indicted by a federal grand jury today on charges related to receiving and attempting to distribute child pornography over the Internet.
Dustin Clay Trail, 32, of Jefferson City, was charged in a three-count indictment returned by a federal grand jury in Jefferson City.
Today’s indictment alleges that Trail received child pornography over the Internet on Sept. 3, 2013. The indictment also charges Trail with attempting to distribute child pornography over the Internet on Sept. 4, 2013, and with possessing child pornography from May 2013 to Oct. 31, 2013.
The indictment contains a forfeiture allegation, which would require Trail to forfeit to the government any property used to commit the alleged offenses, including a desktop computer, three hard drives and CDs.
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 FBI, the Boone County Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jefferson City Couple Sentenced for Illegal Firearms, Tampering with EvidenceRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., husband and wife were sentenced in federal court today for the husband’s illegal possession of firearms and the wife’s tampering with evidence.
Andrew David Brandwein, 39, of Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole, the maximum penalty for violating the federal statute.
Brandwein was found guilty of being a felon in possession of firearms on Aug. 14, 2013. Evidence introduced during the trial indicated that Brandwein was in possession of six firearms – a Marlin .22 magnum caliber rifle, a Harrington and Richardson .223-caliber rifle, a Weatherby .300 SBY Mag. rifle, a New England Firearms 10-gauge shotgun, a Rossi .30-06 Springfield rifle and a Harrington and Richardson .410 shotgun – on Jan. 8, 2011.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brandwein has three prior felony convictions for possession of a controlled substance and prior felony convictions for attempting to manufacture a controlled substance, possession of a precursor drug with the intent to manufacture methamphetamine, unlawful possession of a concealable firearm and the distribution, delivery, sale or manufacture of a controlled substance.
His wife, Debra Louise Brandwein, 55, was sentenced to 21 months in federal prison without parole. Debra Brandwein pleaded guilty on Aug. 9, 2013, to tampering with evidence. She admitted that she cleaned two jars that contained methamphetamine in order to protect her husband from prosecution.
Law enforcement officers were dispatched to the Brandwein’s residence on Jan. 8, 2011, when a large barn on the property caught on fire. Officers knocked on the door but received no response. After they used the keys from a truck parked near the barn to enter the house, Andrew Brandwein came out of the back bedroom, and appeared disoriented and confused. Debra Brandwein arrived at the residence a short time later. While in the residence, officers found five firearms sitting on the floor next to a television stand. There was also a loaded Harrington and Richardson .223 rifle lying on the ground next to the truck near the barn.
Andrew Brandwein was arrested; officers found several .223 shells and $2,458 in his pants pockets.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn and Special Assistant U.S. Attorney Steven Berry. It was investigated by the Cole County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Osage Fire Protection District, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group) and the Missouri State Highway Patrol.
Liberty Man Pleads Guilty to Social Security FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man pleaded guilty in federal court today to stealing $84,137 by spending his deceased mother’s Social Security benefits.
Jeffery Schwed, 40, of Liberty, pleaded guilty before U.S. Chief District Judge Greg Kays to the charge contained in a Feb. 19, 2013, federal indictment.
According to today’s plea agreement, Schwed was a joint owner of his mother’s bank account, where her monthly Social Security payments were deposited. Schwed’s mother died on March 16, 2007, but the monthly benefits continued to be deposited into the bank account for approximately five years, through April 2012. Schwed admitted that he converted at least some of these payments for his own personal use.
Schwed admitted that he knowingly and intentionally concealed his mother’s death from the Social Security Administration in order to fraudulently obtain Social Security payments that he knew he was not entitled to receive. Schwed was incarcerated when the Social Security Administration made some of its deposits. Approximately $18,000 in ATM withdrawals were made during the periods when he was incarcerated.
Under the terms of today’s plea agreement, Schwed must pay $84,137 in restitution to the Social Security Administration.
Under federal statutes, Schwed is subject to a sentence of up to 10 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 Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration, Office of Inspector General.Former Grandview Mayor Pleads Guilty to $35,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former mayor of Grandview, Mo., pleaded guilty in federal court today to a wire fraud scheme in which he used a bogus charity to steal $35,000 in contributions from International House of Prayer, a local nonprofit organization.
Stephen S. Dennis, 50, of Grandview, waived his right to a grand jury and pleaded guilty before U.S. Senior District Judge Howard F. Sachs to a federal information that charges him with the felony offense of wire fraud. Dennis resigned as mayor of Grandview on Jan. 10, 2014.
By pleading guilty today, Dennis admitted that he engaged in a scheme from Dec. 12, 2011, to Nov. 29, 2013, to solicit donations to a corporation called Matters of the Heart. Dennis incorporated Matters of the Heart as a nonprofit corporation under state law, but falsely claimed it was also a federally tax-exempt 501(c)(3) corporation. Dennis never applied for 501(c)(3) status with the IRS for Matters of the Heart, even though application instructions were given to him in December 2011 by an attorney from whom he sought legal advice.
According to today’s plea agreement, Dennis received two checks from International House of Prayer Forerunner Christian Fellowship, a nonprofit organization in Grandview, totaling $35,000 in 2012. After obtaining the $35,000, Dennis used these funds for his own personal benefit, including his immediate family’s living expenses, rather than for any charitable purpose.
Matters of the Heart is now dissolved. In the organization’s articles of incorporation, Dennis listed himself as incorporator, registered agent, and one of the three directors of the board. He listed two persons, identified as “B.S.” and “J.M.” as the other two directors. B.S. and J.M. had no knowledge that they were listed as directors, and at no time gave Dennis permission or authority to claim them as such. B.S. and J.M. have never served as directors on the Matters of the Heart board of directors.
Under the terms of today’s plea agreement, the government will jointly recommend with the defendant a sentence of one year and one day in prison. The court may also order Dennis to pay restitution to International House of Prayer. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by the FBI.
Public Corruption Hotline
The FBI has established a toll-free public corruption hotline, 1-855-KCPCTIP, and email [email protected]. Details regarding the various types of public corruption investigated by the FBI can be found online: http://www.fbi.gov/about-us/investigate/corruption.Former Pilot Pleads Guilty to Threatening Republic Airlines CEORead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Republic Airlines pilot pleaded guilty in federal court today to threatening the company’s CEO.
Matthew Richard Walker, 37, of Faribault, Minn., waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges him with explicitly threatening to torture and kill the CEO of Republic Airlines and his family.
By pleading guilty today, Walker admitted that he carried and delivered threats on multiple occasions while employed by the airline. On Aug. 17, 2012, a Republic Airways employee discovered a threatening letter in the cockpit of an aircraft while it was parked at Reagan National Airport in Washington, D.C. Four identical letters were later discovered on aircraft parked at Reagan International Airport, in Charlotte, N.C., and at Kansas City International Airport, as well as aboard an aircraft en route from Reagan National Airport to Indianapolis International Airport. A fifth identical letter was also discovered in the crew room at KCI.
According to the plea agreement, Walker assured interviewing agents he had no interaction with co-workers regarding the letters; he acted completely alone both in writing and placing the letters.
Under federal statutes, Walker is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Deputy U.S. Attorney Gene Porter. It was investigated by the FBI.New York Business must pay up to $1 Million, Pleads Guilty to Contraband Cigarette TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New York business must pay up to $1 million in fines, forfeiture and restitution after pleading guilty in federal court today to its role in a conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
AJ’s Candy & Tobacco, LLC, of Irving, N.Y., pleaded guilty before U.S. District Judge Brian C. Wimes to participating in a conspiracy to commit wire fraud and traffic in contraband cigarettes from June 2010 to Jan. 26, 2012.
Under the terms of today’s plea agreement, the company must forfeit to the government $221,550 (which represents the proceeds of the offense) and pay a fine of $243,400. The court may also order the company to pay an additional $535,050 in restitution to the state of New York. The government and the defendant are in agreement that a sentence of two years of probation is appropriate. Also, as part of the agreement, AJ’s is prohibited from selling premium cigarettes for two years.
AJ’s, a tobacco wholesaler located on a reservation, is not licensed to bring untaxed cigarettes into the state of New York. By pleading guilty today, the company admitted that AJ’s ordered contraband cigarettes from co-conspirators and caused those cigarettes to be transported into New York, knowing that the state excise tax of $4.35 per pack would not be paid as required by state and federal law.
As a result of AJ’s role in this conspiracy, the amount of total excise tax loss to the state of New York was approximately $535,050.
According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Approximately 620,600 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.
In addition to the federal indictment, the undercover operation resulted in a $3.5 million civil forfeiture. Following the seizures that occurred as a result of the investigation, the U.S. Attorney’s Office started a $3.5 million civil forfeiture case naming the assets taken up to that point. On Oct. 23, 2012, the court entered a default order of forfeiture for more than $2 million seized from bank accounts and by agents, more than 300 cases of seized cigarettes, a 2009 Cessna T206H Stationair aircraft, two 2012 Peterbilt 389 trucks and two 2012 Peterbilt 386 trucks. The seized cigarettes have been sold at auction for $532,500. The 2009 Cessna Aircraft has been sold for $450,000. The four trucks have been sold for the following amounts: $115,000; $115,000; $113,000; and $113,000. The civil case has been stayed pending the resolution of the criminal case.
The operation also resulted in a non-prosecution agreement that requires HCI Distribution, a Winnebago, Neb., company, to pay a $300,000 penalty. HCI Distribution is a subsidiary of Ho-Chunk, Inc., a corporation operated by the Winnebago Tribe of Nebraska, a federally recognized Indian tribe.
This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.Used False Identity to Trick Boy Scouts into Sending Pornographic Photos over the InternetRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man who used a false identity as a woman to trick seven minor victims, whom he knew through his involvement in the Boy Scouts of America, pleaded guilty in federal court today to producing, receiving and distributing child pornography.
Ian Francis Burow, 24, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a Nov. 7, 2012, federal indictment. Burow remains in federal custody without bond.
By pleading guilty today, Burow admitted that he used the alias “Sarah McGee” to communicate online (through Facebook, Skype and Yahoo) and via cell phone with several Boy Scouts, ranging in age from 14 to 17. Burow tricked the minor victims into sending him pornographic photos of themselves in inappropriate poses, or make videos or live broadcast themselves engaged in sexually explicit behavior over the Internet (through Skype or a Windows movie media attachment).
Burow sent the victims photos of a woman (claiming it was “Sarah McGee”) in various poses, including nudity, to encourage the victims to send similar photos. Once he received victims’ photos and movies, he frequently distributed some of them to one of the minor victims and to others.
Burow, who was also a Boy Scout, told persons asking about “Sarah McGee” that he knew her, that she was a good friend and that she lived in the same housing complex. In fact, she did not exist.
According to court documents, witnesses saw Burow carrying and displaying nude photos of young boys on his phone, and at least one caught him in an inappropriate communication over the Internet. When confronted by this person, Burow falsely claimed he was working for the Boone County Sheriff’s Department’s Cyber Crimes Task Force – the same agency that investigated and arrested him. He suggested to her that he was assisting law enforcement in its efforts to capture persons who were predators of young people.
Law enforcement investigators identified many persons (not all of whom were minors) who were solicited by Burow to produce photos and videos of themselves engaging in sexually explicit conduct and send them to “Sarah McGee.” Not all of these persons sent the requested materials, but many did.
Burow pleaded guilty to seven counts – involving six different victims, ages 14 through 17 – of receiving and distributing child pornography between Dec. 27, 2010, and Aug. 1, 2011. Burow also pleaded guilty to one count of producing child pornography on Oct. 14, 2011, when he used a 15-year-old victim to engage in sexually explicit conduct, which was transmitted live over the Internet by using Skype.
Burow must forfeit to the government any property used to commit the offenses, including an Apple iPad, a laptop computer, an Apple iTouch, a Blackberry Curve, two external hard drives and other items.
Under federal statutes, Burow is subject to a mandatory minimum sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Three KC Residents Sentenced for Armed Bank Robbery; Pretended to take Brother, Sister HostageRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Mo., residents were sentenced in federal court today for the armed robbery of a Brookside area bank in which they pretended that two of the accomplices, a brother and sister, were taken hostage.
Lashon M. Hudson, 42, her brother, Larry T. Hudson III, 39, and William L. Wheeler, Jr., 28, all of Kansas City, Mo., were sentenced in separate hearings before U.S. District Judge Dean Whipple. Lashon Hudson was sentenced to seven years and three months in federal prison without parole. Larry Hudson was sentenced to three years and six months in federal prison without parole. Wheeler was sentenced to two years in federal prison without parole.
Lashon Hudson, Larry Hudson and Wheeler each have pleaded guilty to aiding and abetting armed bank robbery. They admitted to working together to steal $2,872 from a branch of Bank Midwest, 6249 Brookside Blvd., Kansas City, Mo., on Dec. 10, 2011.
According to their plea agreements, Lashon Hudson and Wheeler drove together to the bank, while Larry Hudson drove separately. Lashon Hudson gave Wheeler a revolver. Then Lashon Hudson, and eventually Larry Hudson separately, entered the Bank Midwest to scout the location. When approached by a bank employee, Lashon Hudson claimed she was waiting for her sister to arrive at the bank to open an account. Lashon Hudson appeared to be talking on a cell phone while in the bank. When Larry Hudson entered the bank, he asked to use the restroom, but was told by a bank employee that there was no public restroom available. He briefly exited the bank, but eventually came back inside.
Wheeler then entered the bank with the handgun and demanded money from a bank teller, stating something to the effect of “I’ve got a gun and I’m not afraid to use it.” Wheeler told another bank employee, “Get your hands in the air! Don’t anyone move; I will shoot you.” The teller gave Wheeler the money from her drawer, which Wheeler started putting in a bag. Some of the money was accidently dropped on the floor, and Lashon Hudson helped place that money in the bag for Wheeler.
Larry Hudson remained in the bank lobby, and stated, “Oh my God, I don’t want to die.” As part of the plan, Wheeler pretended to take Lashon and Larry Hudson hostage. The three of them left the bank, got into the car driven by Larry Hudson, and drove away.
Larry Hudson drove Lashon Hudson and Wheeler several blocks away from the bank. Wheeler gave Lashon Hudson the bag containing the money and returned the revolver to her. Wheeler and Lashon Hudson exited the vehicle at a house, and Larry Hudson drove away. Lashon Hudson called for a cab, which she and Wheeler then took back to her house. Subsequently, Lashon and Larry Hudson divided up the money from the bank robbery.
Approximately five hours after the robbery, Lashon Hudson arrived at the Kansas City, Mo., Police Department headquarters. She told officers that she and her brother were taken hostages by the bank robber, whom she could not identify. Upon additional questioning, Lashon Hudson altered her story; she could not explain why it took her five hours to report the robbery and her being taken hostage but denied being involved in the bank robbery.
When officers returned Lashon Hudson to her home after the interview, they encountered Larry Hudson, who had failed to report his alleged kidnapping to the police. Larry Hudson also claimed that he and his sister were taken hostage by the bank robber, but in a subsequent interview altered his story.
Investigators later identified Wheeler as the armed bank robber.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Northland Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury for receiving and attempting to distribute child pornography over the Internet.
Steven H. Taylor, 23, of Kansas City-North, was charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Jan. 29, 2013. The indictment was unsealed and made public today upon Taylor’s arrest and initial court appearance.
The federal indictment charges Taylor with five counts of attempting to distribute child pornography over the Internet, two counts of receiving child pornography over the Internet and one count of possessing child pornography.
The indictment also contains a forfeiture allegation, which would require Taylor to forfeit to the government any property used to commit the alleged offenses, including two desktop computers.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Nixa, 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."Jackson County Man Sentenced to 25 Year for 15-kilo Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jackson County, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine, a money-laundering conspiracy, and illegally possessing a firearm.
Ronald Wayne Ivy, also known as “Wayno” or “Big Homie,” 41, of Jackson County, was sentenced by U.S. Chief District Judge Greg Kays to 25 years in prison without parole. The court also ordered Ivy to forfeit to the government $211,200, which represents the proceeds of the drug-trafficking conspiracy (based on a conservative street price of $1,200 an ounce and distribution of at least 15 kilos of methamphetamine through the overall conspiracy). The forfeiture includes approximately $30,000 that was seized at Ivy’s residence by law enforcement officers.
On Nov. 4, 2013, Ivy pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine from Jan. 1, 2009, to Dec. 11, 2012, conspiracy to commit money laundering and possessing a firearm in furtherance of a drug-trafficking crime.
Law enforcement officers were investigating a drug-trafficking organization that was distributing methamphetamine in the metropolitan area. Officers made undercover drug purchases from some mid-level distributors, who obtained methamphetamine from Ivy.
Ivy was arrested in April 2012 in possession of more than 500 grams of methamphetamine. Co-conspirators were arrested in July 2012 after leaving the area of Ivy’s residence; they were in possession of approximately three grams of methamphetamine that they obtained from Ivy. According to the plea agreement, regular purchases of this amount (“eight-ball” – 1/8 of an ounce) were conducted at Ivy’s residence and other locations with Ivy.
Law enforcement officers executed a search warrant at Ivy’s residence on Aug. 20, 2012. Officers seized more than $30,000, multiple firearms and more than 500 grams of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Jackson County Drug Task Force, the Independence, Mo., Police Department and the Drug Enforcement Administration.Bolivar Man Pleads Guilty to Possessing Child Porn, Faces 10 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 Bolivar, Mo., man pleaded guilty in federal court today to possessing child pornography.
Leland Wallace Crull, 44, of Bolivar, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing child pornography.
Law enforcement officer executed a search warrant at Crull’s apartment on Aug. 9, 2012. Officers found Crull’s laptop computer, which contained multiple images of child pornography.
Under the terms of today’s plea agreement, Crull will be sentenced to 10 years in federal prison without parole, which is the statutory maximum penalty. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Polk County, Mo., Sheriff’s Department.Weaubleau Man Charged with Child Porn after Texting Teenage VictimRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Weaubleau, Mo., man was charged in federal court today with producing, receiving and possessing child pornography after exchanging pornographic images with a teenage girl via cell phone.
Larry Allison, 49, of Weaubleau, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo. Allison remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, Springfield police officers were contacted by the victim’s mother on Jan. 9, 2014, to report an incident that occurred earlier that day. The mother had observed another daughter walking home from school when Allison pulled up to her in his car and stopped. Allison apparently mistook the younger daughter for her sister, identified in the affidavit as “Minor Victim” (MV). The mother went to the victim’s school, located MV, and took her cell phone. She found several text messages and photos allegedly sent between MV and Allison.
The text messaging, which started on Jan. 4, 2014, became sexual in nature, according to the affidavit. Allison allegedly sent MV a nude photo of himself and asked her to send nude photos of herself to him, which she did.
A Springfield detective, portraying herself as MV, began texting Allison. Allison allegedly asked her sexual questions, invited her to come live with him, and suggested that she perform oral sex on his horse.
Law enforcement officers executed a search warrant at Allison’s residence on Thursday, Jan. 30, 2014. Officers questioned Allison about the text messages and the photos and placed him under arrest.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI 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."