Western District of Missouri
Press releases recorded for this federal judicial district.
Guatemalan National Sentenced for ID Theft; more than 100 Illegal Aliens used False ID in Scheme to Obtain LicensesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Guatemalan national was sentenced in federal court today for aggravated identity theft in connection to a conspiracy to provide false identity documents so that more than 100 illegal immigrants could fraudulently obtain driver’s and non-driver’s licenses from the license office in St. Joseph, which is operated by a contractor for the Missouri Department of Revenue.
Pedro Pablo-Solis, 29, a citizen of Guatemala residing in Liberal, Kan., was sentenced by U.S. District Judge Brian C. Wimes to two years in federal prison without parole.
On Sept. 23, 2013, Pablo-Solis pleaded guilty to aggravated identity theft. He is the fifth and final defendant to plead guilty and be sentenced in this case.
Illegal aliens traveled across the United States to obtain licenses at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that well over 100 Missouri licenses were unlawfully issued to illegal aliens as part of this conspiracy from July 1, 2010, to Jan. 10, 2012.
Pablo-Solis’s role in the conspiracy was to obtain genuine Social Security cards and birth certificates that were later used by illegal aliens to fraudulently obtain Missouri identification documents. Pablo-Solis, who is illegally present in the United States, provided co-defendant Domingo Ajanel-Castro, 33, a citizen of Guatemala residing in St. Joseph, with identification documents for a specific age range for either a male or a female that corresponded with the illegal alien who was purchasing the document set.
Thomas Richard McNamara III, 27, formerly an employee at the St. Joseph license office, Hector Juarez Mendoza, Sr., 55, a citizen of Mexico who is a lawful permanent resident of the United States, and his wife, Isabel Ramirez Mendoza, 62, and Ajanel-Castro, all of St. Joseph, pleaded guilty to their roles in a conspiracy to unlawfully produce identification documents, unlawfully transfer the means of identification of another person and commit Social Security fraud and to aggravated identity theft. Ajanel-Castro also pleaded guilty to possessing false or fraudulently obtained identification documents.
The Mendozas and others (including family members, such as their minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators. They charged a fee, typically $100, for assisting the illegal aliens to obtain a Missouri driver’s or non-driver’s license that was in the name of another person who was listed on unlawfully obtained birth certificates and Social Security cards.
The Mendozas also referred illegal aliens to co-conspirators who could assist them in obtaining identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
The Mendozas assisted illegal aliens in preparing for potential questions from the license office employees, such as learning the names on the birth certificates, the names of the parents on the birth certificates, the dates of birth, and the Social Security numbers.
Sometime between June 22, 2009, and Nov. 2, 2011, Isabel Mendoza approached McNamara and asked him to accept identification documents he was not supposed to accept and issue Missouri driver’s or non-driver’s licenses to individuals who were escorted by her and others. In exchange, she offered to pay McNamara a fee of approximately $50 to $100 for each time he issued a license he was not supposed to issue due to the inadequate documentation of their true identity.
McNamara admitted that he accepted improper documents approximately two to three times a week, but he didn’t do this every week. Mendoza often called Isabel McNamara before bringing aliens to the license office to make sure he would be working and to let him know they were bringing in clients. McNamara then met with Isabel Mendoza on numerous occasions during non-work hours at locations other than the licensing office to receive payment.
According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to obtain licenses.
This case was prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, and the U.S. Postal Inspection Service.Former Business Owner Sentenced for $500,000 Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former business owner was sentenced in federal court today for tax evasion after failing to pay more than $530,000 in taxes owed.
William Fielding Jones, 56, of Clearwater Beach, Fla. (formerly of Kansas City, Mo.), was sentenced by U.S. Chief District Judge Greg Kays to two years in federal prison without parole. The IRS is responsible for collecting $530,059 in restitution.
Jones, who pleaded guilty on Sept. 4, 2013, previously owned two companies – SAM Packaging and Mustang Innovation. Jones admitted that he attempted to evade paying income taxes for tax years 2006-2008, during which time he accumulated a tax debt of $530,059.
Jones evaded paying taxes by concealing bank accounts, changing the name of his business, making payments in cash to avoid using bank accounts, and concealing his true financial condition from the government.
According to court documents, Jones didn’t withhold taxes or make estimated payments from at least 2005 to 2011. During this time, his average annual income was nearly $170,000. After moving to Florida in 2010, Jones lived in a furnished luxury beach condominium in Clearwater with a rent of $2,900 per month. He drove a Lincoln Navigator and Cadillac CTS.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Houston Lake Man Pleads Guilty to 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 Houston Lake, Mo., man pleaded guilty in federal court today to possessing child pornography.
Carlos J. Scott, 46, of Houston Lake, pleaded guilty before U.S. District Judge Dean Whipple to possessing child pornography.
According to today’s plea agreement, the investigation began when the victim, identified as “Jane Doe,” reported past sexual molestation by Scott to the Kansas City, Mo., Police Department on Sept. 4, 2011. In a later interview, Jane Doe stated that Scott sexually molested her from the time she was six years old until the age of 12. Jane Doe also stated that Scott left pornography open on the computer and that he had photographs of his penis on the computer, which he would leave in places he knew she would access while using the computer. She also reported that Scott regularly exposed himself to her.
A 12-year-old cousin of the child victim was also interviewed. She repeated Jane Doe’s statements about pornography being left open on Scott’s computer.
Law enforcement officers executed a search warrant at Scott’s residence and seized his laptop computer. They also seized a desktop computer from the home of Scott’s parents, where he had lived during most of the time that the sexual abuse of Jane Doe occurred. Scott had used the computer while living with his parents.
Among the files found on Scott’s computer were images of possible child pornography and erotica as well as multiple photos of young girls playing. Detectives showed Jane Doe several of the photographs; she became emotional and identified herself in the series of photographs. Child pornography and erotica also were located on the parent’s computer. According to today’s plea agreement, there were between 10 and 150 images of child pornography.
Under the terms of today’s plea agreement, Scott is subject to a sentence of at least five years up to 10 years in federal prison without parole. The government contends and will argue at sentencing that Scott engaged in a pattern of activity involving the sexual abuse or exploitation of a minor, which would increase his offense level under the federal sentencing guidelines. 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 Teresa A. Moore. 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."Mexican National Indicted for Smuggling Heroin in his ShoesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was indicted by a federal grand jury today for attempting to transport approximately two pounds of heroin across the country in his shoes.
Sergio Arturo Gonzalez-Garcia, 29, a citizen of Mexico, was charged with possessing heroin with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Gonzalez-Garcia on Jan. 21, 2014. Gonzalez-Garcia remains in federal custody.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers saw Gonzalez-Garcia waiting to claim his luggage after he arrived at the Greyhound bus terminal at 1101 S. Troost Ave., Kansas City, on Jan. 20, 2014. A drug detection dog started pulling its handler in the direction where Gonzalez-Garcia was standing, the affidavit says, and when he saw the officer approaching, Gonzalez-Garcia immediately walked into the bus terminal.
When Gonzalez-Garcia later walked back to the bus, then returned to the terminal, a Kansas City police detective noticed that he seemed to have difficulty walking, the affidavit says. The detective also noticed that the athletic shoes Gonzalez-Garcia was wearing did not bend as he took steps.
The detective followed Gonzalez-Garcia into the terminal and questioned him. The detective asked Gonzalez-Garcia if he could search his shoes. They went into the customer service office and Gonzalez-Garcia removed his shoes. Officers found a bundle of heroin inside each of the shoes, which weighed a total of 993 grams (more than two pounds).
Gonzalez-Garcia, who told police he was transporting the heroin from Los Angeles, Calif., to St. Louis, Mo., was arrested.
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 David A. Barnes. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
KC Postal Carrier Indicted for Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., postal carrier was indicted by a federal grand jury today for stealing from the mail.
Shawn C. Henderson, 45, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Henderson was employed as a city carrier associate for the U.S. Postal Service since April 2013. Today’s indictment alleges that she stole $1,646 worth of EBT cards from customers on her mail route from April 20 to Aug. 7, 2013. EBT cards are like debit cards and are used to provide benefits under the Supplemental Nutrition Assistance Program (SNAP), also known as “food stamps,” which helps lower-income individuals and families buy food. Henderson allegedly used the EBT cards herself and gave some of the cards to a person identified in the indictment as “E.M.”
During that time, Henderson allegedly removed greeting cards, gift cards and EBT cards from the mail she was responsible to deliver. Henderson allegedly opened mail that wasn’t addressed to her with the intent to steal those items for her own use.
The indictment also alleges that Henderson stole and used an EBT card by resetting the PIN and assuming the rightful owner’s identity at various food outlets.
Today’s indictment charges Henderson with one count of stealing government property, one count of stealing mail and one count of aggravated identity theft. The indictment also contains a forfeiture allegation, which would require Henderson to forfeit to the government any proceeds obtained from the alleged offenses, including a money judgment of $1,656.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Service, Office of Inspector General and the U.S. Department of Agriculture, Office of Inspector General.Chillicother Couple Indicted for False Tax Returns Related to Wife's $4 Million TheftRead 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 were indicted by a federal grand jury today for filing a false income tax return by not claiming the income from a wire fraud scheme in which the wife embezzled nearly $4 million from her employer, Burdg, Dunham & Associates Construction Corp. in Hamilton, Mo.
Donna M. Preszler, 60, and her husband, Terrance W. Preszler, 63, both of Chillicothe, were charged in a 21-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces a federal indictment that was returned on June 20, 2013, and adds the husband as a defendant in one count of making a false income tax return.
Donna Preszler was employed at Burdg, Dunham & Associates (BDA) 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.
The indictment alleges that Preszler embezzled $3,912,000 in a wire fraud scheme from June 30, 2006 through June 15, 2012. Preszler allegedly used her employer’s accounting software to create payroll data files that contained unauthorized false and fictitious payments to her bank accounts and others.
Today’s indictment alleges that Donna and Terrance Preszler failed to report the fraudulently obtained funds on their federal income tax returns for tax years 2007 through 2012. During that time, according to the indictment, the Preszlers should have paid $1,236,690 in taxes on their unreported fraudulent income from BDA.
For example, according to today’s indictment, the Preszlers claimed their income in 2012 was only $46,863. Including the embezzled funds, the indictment says, their income was actually $851,863 and they should have paid an additional $253,641 in taxes.
The federal indictment charges Donna Preszler with six counts of wire fraud and 14 counts of money laundering.
Donna Preszler allegedly utilized her role as accounting manager to add false and fictitious non-taxable pay, such as expense reimbursements to herself. Over a six-year period, the indictment says, Donna Preszler transferred approximately $3,912,000 in false and fictitious payments to herself and her family.
Donna Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll, the indictment says. Donna Preszler allegedly initiated approximately $76,000 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.
The indictment also contains a forfeiture allegation, which would require Preszler to forfeit to the government any property derived from the proceeds of the alleged 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.
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 Jess E. Michaelsen. It was investigated by the FBI and IRS-Criminal Investigation.
Eldon Man Sentenced to 20 Years in Prison for Meth Conspiracy, Attempted Jail EscapeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Eldon, Mo., man has been sentenced in federal court for his role in a large-scale conspiracy to distribute methamphetamine in the Cole and Callaway County area, as well as his attempted jail escape.
Mitchell Lynn Atterberry, 36, of Eldon, was sentenced by U.S. District Judge Beth Phillips on Thursday, Jan. 23, 2013, to 20 years in federal prison without parole.
On Aug. 15, 2013, Atterberry pleaded guilty to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to escape from custody, and attempted escape from custody.
Conspiracy to Distribute Methamphetamine
Law enforcement officers executed two search warrants at Atterberry’s residence on Nov. 15, 2010, seizing a total of 8.19 grams of meth and $6,050.
Atterberry, riding his motorcycle, led Jefferson City, Mo., police officers on a high-speed chase on June 2, 2011, which reached speeds up to 100 miles per hour. Atterberry crashed his motorcycle and, after a brief pursuit on foot, was arrested. Officers saw Atterberry discard 2.04 grams of meth during the foot chase. Officers also found $8,190 in six separate envelopes, including what appeared to be a drug ledger, in Atterberry’s motorcycle.
Atterberry, driving a Pontiac, was pulled over by a Holts Summit, Mo., police officer for a routine traffic stop on Feb. 11, 2012. During the stop, while the officer returned to his patrol vehicle, Atterberry fled. Atterberry led officers on a high-speed pursuit through Holts Summit, New Bloomfield and Fulton at speeds up to 163 miles per hour. Atterberry fled from his vehicle and was apprehended after a brief chase on foot. Officers searched the vehicle and found .29 of a gram of methamphetamine and $2,986.
Atterberry was pulled over by Jefferson City, Mo., police officers on May 22, 2012. Officers searched the vehicle and its occupants and found 13.02 grams of methamphetamine, a loaded .40-caliber Hi Point pistol, $2,234 and $900 in counterfeit currency.
Co-defendant Tami Jo Zeugin, 38, of Fulton, Mo., pleaded guilty on Jan. 9, 2014, to her role in the conspiracy to distribute methamphetamine and awaits sentencing.
The total methamphetamine seized from Atterberry and Zeugin during the course of the investigation is 54.14 grams. Officers also seized a total of $20,939.
Conspiracy to Escape from Custody
Sheriff’s deputies at the Morgan County jail, where Atterberry was detained, received a tip on Nov. 14, 2012 and searched Atterberry’s cell. Atterberry’s cellmate was Steven Pyykola of Springfield, Mo. Pyykola was convicted of three state murder charges and is serving three consecutive life sentences without parole.
Deputies discovered that the cell window had been damaged. The metal support beam had been cut most of the way through. They also found a 10-inch saw blade in the mat on the top bunk of the cell and a smaller two-inch saw blade that appeared to have broken off the larger blade.
Authorities reviewed telephone calls that Atterberry and Pyykola made to co-defendant Amanda Leigh Lesh, 35, of Jefferson City. They asked Lesh to purchase saw blades and deliver them to the jail underneath their second story window. Atterberry and Pyykola would then slide a string out of a hole that had been made in the window to the ground where Lesh would tie on the items and they would pull them up and in through the window. Lesh also made references to picking up the two after the escape and buying them clothes to wear.
On Nov. 13, 2012, Atterberry told Lesh in a recorded telephone conversation that they “worked on it late last night, couldn’t get it done” and in a later call that day said they hoped to get it done “by tonight.” The next day, authorities received the tip about the escape plans.
Lesh pleaded guilty to her role in Atterberry’s unsuccessful escape attempt and was sentenced on Sept. 26, 2013, to time served.
This case is being prosecuted by Assistant U.S. Attorney Lauren Kummerer. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Holts Summit, Mo., Police Department, the Fulton, Mo., Police Department, the Mid-Missouri Drug Task Force, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Missouri State Highway Patrol, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department and the U.S. Marshal’s Service.
Columbia Man Sentenced for Arsons at Mu, Stephens CollegeRead the Press Release
JEFFERSON CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for two arsons that caused more than $1 million in damages to the Ellis Library at the University of Missouri–Columbia and a building on the Stephens College campus in Columbia.
Christopher Curtis Kelley, 28, of Columbia, was sentenced by U.S. District Judge Beth Phillips to six years and six months in prison without parole. The court also ordered Kelley to pay $591,114 in restitution.
On April 24, 2013, Kelley was found guilty of two counts of arson. Evidence presented during the trial indicated that Kelley deliberately set fires at 10 different locations inside the Ellis Library, which is the main library at the University of Missouri, at approximately 3:30 a.m. on Sept. 10, 2011. Some of the fires didn’t take or caused minimal damage, while other fires caused significant damage. Kelley also used a metal pipe to destroy and vandalize property at the library, including computer monitors, security cameras and windows. Human feces and urine were found on top of one of the study desks.
The overall cost to repair the damage to the library was estimated between $750,000 and $1 million. Cleanup costs alone have amounted to $531,294, and property loss amounts are still being determined. As a result of the fire, university faculty, staff, students, and the public in general suffered a major disruption in services. Employees lost personal possessions and were displaced while repairs were made. Users were denied access and services for a total of 43 lost hours. Reference services were unavailable for 35 hours. International student instruction classes were cancelled. Library staff spent numerous hours moving bottom shelves of reference books away from damaged and wet floors.
In addition, the Ellis Library building houses the Missouri State Historical Society, which serves as the repository for books, maps and other documents with historical importance. That area of the library suffered extensive water damage as a result of the fires. Property damage to that area was separately estimated to be between $60,000 and $75,000. The Society was completely closed to the public for three days following the fires. Society employees put in thousands of hours packing, cleaning, moving and rearranging work space as the Society was renovated. Members of the public were unable to conduct research, and many individuals who had traveled to conduct research were turned away. Five staff members, whose desks and computers were water-damaged, had to pack up their work areas and move across campus to be housed in temporary work space for approximately four months. Additional staff members had to be relocated for several months due to the damage. Tens of thousands of journals and periodicals had to be boxed up and relocated because of renovations required from the water damage, and countless staff hours were expended drying original, primary-source documents. Each page/sheet had to be individually dried with blotting paper to save the documents and prevent the formation of mold. Approximately 1,000 hours were spent taking down, repairing and replacing the art/exhibit panels that were in the corridor gallery.
The Ellis Library also operates a federal documents repository, which suffered major disruption as a result of the arson.
Photos taken from the library’s security cameras were distributed to the media and the college community. Law enforcement officials received several telephone calls in response from individuals who identified Kelley. At about noon on the same day as the arson, Kelley turned himself in to the University of Missouri Police Department.During the investigation into the Ellis Library arson, law enforcement officers recovered stolen computer equipment at Kelley’s residence that had been taken from Stephens College during an earlier arson on that campus.
Kelley was also convicted of starting a fire in a classroom of the Audrey Webb Child Study Center on the Stephens College campus at approximately 4 a.m. on May 18, 2011. The Audrey Webb Learning Center is an educational facility, providing a laboratory to train students to become educators.
Kelley broke into the school and stole a computer after starting the fire. The building sprinkler system malfunctioned; however, firefighters quickly responded to the alarm and extinguished the fire before the entire structure burned. There was moderate smoke damage in the basement area directly below the classroom. Damages to the Audrey Webb Child Center amounted to $54,819.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the University of Missouri Police Department, the Columbia, Mo., Police Department, the Columbia, Mo., Fire Department, the Stephens College Security Department, the University of Missouri Ellis Library Security Department, the U.S. Department of Education and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Stella Man Indicted for Transporting a Minor for Illicit SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Stella, Mo., man has been indicted by a federal grand jury for transporting a minor across state lines for illicit sex.
Tong Yang, 45, of Stella, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Jan. 21, 2014.
The federal indictment alleges that Yang transported a minor across state lines to Newton County, Mo., on Dec. 7, 2013, with the intent to engage in illicit sexual activity.
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 U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, Mo., Police Department.
Independence Man Sentenced for Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man has been sentenced in federal court for an investment fraud scheme in which he stole $724,000 from 13 victims.
Richard J. Gumerman, 67, of Independence, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, Jan. 21, 2014, to three years and 10 months in federal prison without parole. The court also ordered Gumerman to pay $722,326 in restitution.
On July 26, 2013, Gumerman pleaded guilty to one count of mail fraud and one count of filing a false income tax return. Gumerman admitted that he stole at least $724,000 from investors from 2007 through December 2011. Gumerman used investor funds for personal living expenses, to pay other investors, to give money to Hooters’ restaurant waitresses and in other businesses he owned.
Gumerman did business as Gumerman Trading Company (GTC). Gumerman is not registered as a broker-dealer agent, investment adviser representative, or issuer agent in the state of Missouri, nor has he ever been. Despite not being registered to sell securities, Gumerman sold investments with the GTC Trading Fund.
Between January 1992 and December 2010, individuals and groups invested more than $948,000 in the GTC Trading Fund. Gumerman told investors that the GTC Trading Fund pooled investor funds to trade in the commodities futures market. Prior to opening the GTC Trading Fund, Gumerman had only traded commodities for one year in a personal account, and lost money in that personal trading account. Gumerman did not disclose this material fact to investors.
Gumerman mailed statements, sometimes monthly (with the December statements showing yearly totals), to investors. The statements listed a fictional ending balance, fictional “interest” earned and a fictional rate of return on investment. The account statements did not reflect actual balances in the accounts, actual interest earned, or an actual rate of return. Gumerman sent to investors Internal Revenue Service Forms 1099 which reflected that they had earned interest from their investment accounts, when in fact they had not earned interest. Investors used these forms to pay taxes on interest they had not earned.
Gumerman also admitted that, when he filed his tax return in April 2011, he stated that his taxable income was $42,534 in 2010. Gumerman failed to declare income he had obtained by fraud; his taxable income was actually $248,350. The total tax loss from Gumerman’s false tax returns was $96,635.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, U.S. Secret Service and the Lee’s Summit, Mo., Police Department.
Springfield Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for using two minors to produce child pornography.
Ronald Mazza, 33, of Springfield, was charged in a three-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Mazza used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Aug. 1 and Dec. 1, 2013. Each count, upon conviction, carries a mandatory minimum sentence of 15 years in federal prison without parole.
Mazza is also charged with one count of receiving and distributing child pornography over the Internet between Aug. 1 and Dec. 1, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, 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."Ozark Man Indicted for Child Sexual ExploitationRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man was indicted by a federal grand jury today for using two minors to produce child pornography.
Dennis Lee Whitaker, 53, of Ozark, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Whitaker used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Jan. 1, 2010, and Jan. 1, 2013, in Stone and Taney counties. Each count, upon conviction, carries a mandatory minimum sentence of 15 years in federal prison without parole.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Stone County, Mo., Sheriff’s Department and the Ozark, 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."KC Woman Sentenced to 30 Years for Large-scale Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in a conspiracy that was responsible for distributing hundreds of kilograms of cocaine in Jackson County, Mo.
Tamiko Grandison, 41, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole.
On Aug. 20, 2013, Grandison was found guilty of participating in a conspiracy to distribute cocaine in Jackson County between Jan. 1, 2004, and June 17, 2010. Evidence introduced during the trial indicated that Grandison was the conduit who made deliveries of cocaine to customers in the Kansas City area on behalf of her then-boyfriend, Jiles Johnson, formerly of Kansas City, Mo. Johnson, who testified at Grandison’s trial, is being prosecuted in a separate case in the Northern District of Georgia. The government alleges that tons of cocaine was smuggled across the Mexican border and distributed throughout the United States to Johnson and others.
Johnson brought cocaine to Kansas City in 30- and 50-gallon drums and broke it down into kilogram quantities in Grandison’s basement. Grandison stored multi-kilogram quantities of cocaine at her residence until it was delivered.
Grandison delivered hundreds of kilograms of cocaine to co-conspirators over the course of the conspiracy. She also picked up the money from these customers for Johnson, and helped him conceal the drug-trafficking conspiracy by laundering some of the proceeds.
This case was prosecuted by Assistant U.S. Attorney Charles E. Ambrose, Jr. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Jury Convicts KC Man of PCP Trafficking, Illegal FirearmsRead 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 multiple counts related to possessing PCP with the intent to distribute and to illegally possessing firearms.
Jerry D. Scott, 41, of Kansas City, was found guilty of two counts of possessing PCP with the intent to distribute, one count of possessing PCP, two counts of being a felon in possession of a firearm and one count of possessing a firearm in furtherance of drug-trafficking crimes.
Law enforcement officers began conducting surveillance on Scott’s residence in March 2012 after receiving information from a confidential source that he was selling PCP and carrying firearms. At the time, Scott had five prior felony convictions, including possessing PCP and carrying a firearm.
A police detective saw Scott, who did not have a valid driver’s license, leave the house with another person and get into his black Lincoln Navigator, which was parked in front of the residence. When Scott started driving his vehicle, police officers conducted a traffic stop. Scott and his passenger, Candace I. Brown, both had outstanding Kansas City municipal warrants and were arrested.
An inventory search of the vehicle prior to towing was conducted and officers discovered PCP and a Jimenez 9mm handgun with no serial number in the center console of the vehicle. Officers also found a loaded Smith & Wesson 9mm handgun under the driver’s side floor mat.
Scott was also in possession of PCP on May 12, 2010. A Kansas City police officer drove past Scott’s parked vehicle and smelled the odor of PCP and marijuana. Officers saw a loaded Glock 10mm pistol in the driver’s side door pocket and Scott was placed under arrest. During an inventory search of the vehicle prior to towing, officers discovered a bottle of PCP in the center console.
On Aug. 16, 2010, Scott sold three PCP-dipped cigarettes to a confidential informant in a controlled undercover operation. Deputies from the Jackson County Sheriff’s Department executed a search warrant at Scott’s residence on Aug. 20, 2013, and found three bottles that contained PCP as well as drug paraphernalia.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts, ending a trial that began Monday, Jan. 13, 2014.
Under federal statutes, Scott is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney William L. Meiners and Special Assistant U.S. Attorney Ann Booton. It was investigated by the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Sarcoxie School Board Member Pleads Guilty to Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former member of the Sarcoxie, Mo., school board pleaded guilty in federal court today to possessing child pornography.
John R. Lewis, 68, of Sarcoxie, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 28, 2014, federal indictment.
According to court documents, Missouri State Highway Patrol troopers contacted Lewis as part of their investigation into allegations that he had exposed himself to a group of high school students who were working for Lewis on his farm outside of Sarcoxie. The troopers obtained a search warrant for Lewis’s residence and seized two desktop computers, a laptop computer and electronic storage devices.
Investigators determined that the computers contained 19 multimedia files of child pornography and 113 images of suspected child pornography. The multimedia files and images depicted children as young as five years old.
Under the terms of today’s plea agreement, Lewis will be sentenced to two years in federal prison without parole followed by 10 years of supervised release. 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 Michael S. Oliver. It was investigated by the Missouri State Highway Patrol, the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Webb City Woman Sentenced for Embezzling $114,000 from her EmployerRead the Press Release
SPRINGFIEFLD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Webb City, Mo., woman was sentenced in federal court today for embezzling more than $114,000 from her employer.
Roxanna Sue Rindom, 47, of Webb City, was sentenced by U.S. District Judge Beth Phillips to 18 months in federal prison without parole. The court also ordered Rindom to pay $114,814 in restitution.
On Sept. 4, 2013, Rindom pleaded guilty to two counts of bank fraud and one count of credit card fraud.
Rindom, who was employed by Neal Group Construction, LLC, in Joplin, Mo., admitted that she forged 68 checks on her employer’s bank account that were made payable to herself. In order to conceal the forgeries, Rindom made fictitious entries into the company’s accounting system, QuickBooks. The majority of the entries are written as fictitious company-related expenditures. Rindom also designated on some of the checks that it was a payroll check for a certain pay period, when in fact it was not a lawful payroll check.
Rindom also admitted that she made 174 unauthorized purchases on the company’s credit card. In addition, Rindom made five unauthorized alterations to the direct deposits made to her bank account. There were also several unauthorized purchases made by Rindom on the Neal Group Construction’s account at the Lowe’s store in Joplin.
Rindom’s criminal conduct was discovered on May 23, 2012, when she attempted to make an unauthorized $2,179 wire transfer from her employer’s bank account to pay her daughter’s student loan payment. This attempted theft prompted the company to conduct a detailed audit of the checking account. The loss for Rindom’s criminal conduct totals $114,814.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the FBI.Two Joplin Men Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Joplin, Mo., men have been sentenced in federal court, in separate and unrelated cases, for fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Andy Eric Brownlee, 32, and Leslie Lynn Williams, 54, both of Joplin, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes on Monday, Jan. 13, 2014. Brownlee and Williams were each sentenced to two years in federal prison without parole. The court also ordered Brownlee to pay $2,750 in restitution and ordered Williams to pay $1,196 in restitution.
On Aug. 5, 2013, Brownlee pleaded guilty to making materially fraudulent statements and representations to FEMA in connection with his application for disaster assistance. Brownlee completed a FEMA application for disaster assistance on May 26, 2011, claiming that his Joplin residence had been damaged by the tornado. Brownlee received a payment of $2,750. However, Brownlee admitted that the address he used in his FEMA application was actually the address of the Lazarus Ministries Halfway house, which was not his residence at the time of the tornado. Brownlee previously resided there, but moved out prior to the tornado.
Williams pleaded guilty on March 8, 2013, to making materially fraudulent statements and representations to FEMA in connection with his application for disaster assistance. Williams admitted that when he filed for disaster relief on May 27, 2011, he listed a Joplin address as his primary residence and claimed that it had been damaged by the tornado. FEMA authorized a $1,196 payment to Williams. Williams admitted, however, that he was not living at that address at the time of the tornado, but had moved out in February 2011.
These cases were prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. They were investigated by the U.S. Department Homeland Security, Office of the Inspector General (DHS-OIG), 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.Statement Regarding the Death of Brandon ColemanRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, released the following statement today:
“In October 2013, the United States Attorney’s Office opened a preliminary inquiry regarding the death of Brandon Coleman, who was fatally shot last May. The inquiry was opened at the request of the NAACP following the declination of criminal prosecution by the Boone County, Mo., Prosecuting Attorney. The FBI, the U.S. Attorney’s Office and the Department of Justice's Civil Rights Division have thoroughly examined the evidence to determine whether a federally prosecutable criminal civil rights violation or other federal criminal offense occurred. The preliminary inquiry is now closed and no further federal action is warranted. No criminal charges have been filed and no federal civil action will be pursued.
“It is the policy of the Department of Justice that we shall not respond to questions about the status or existence of an investigation. However, due to the substantial publicity received by the allegations in this case, and in light of the fact that the request for our office to investigate became a matter of public concern, I have determined that this release of information is in the public's interest.
“This is in accordance with the United States Attorneys Manual, Section 1-7.530, Disclosure of Information Concerning Ongoing Investigations: ‘In matters that have already received substantial publicity, or about which the community needs to be reassured that the appropriate law enforcement agency is investigating the incident, or where release of information is necessary to protect the public interest, safety, or welfare, comments about or confirmation of an ongoing investigation may need to be made.’
“No additional comment will be made regarding this issue.”
Nixa Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Charles Williams, 28, of Nixa, was sentenced by U.S. District Judge Brian C. Wimes to 10 years and 10 months in federal prison without parole.
Williams, who pleaded guilty on Aug. 7, 2013, admitted that he used peer-to-peer file-sharing program on two laptop computers to download and distribute dozens of videos and photos of child pornography over the Internet from April 9 to Sept. 27, 2011.
A Nixa police officer used a peer-to-peer file-sharing program to connect to Williams’ computer over the Internet. The officer located child pornography on the computer and obtained a search warrant for Williams’ residence. Officers executed the search warrant on Sept. 27, 2011, and seized two laptop computers, two cameras, two videogame consoles, 115 CDs/DVDs and a VHS tape. Among the files discovered on one of the laptop computers was a video of a 4-to-5-year-old child being raped by an adult. Williams was arrested on Sept. 27, 2011.
Investigators conducted an examination of Williams’ computers and found 52 incomplete or partially downloaded videos of child pornography, 29 saved videos of child pornography, eight videos of child pornography in the recycle bin and 13 images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. 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."Another Greenleaf Co-owner Pleads Guilty to Multi-million-dollar Mortgage Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nixa, Mo., man who was a co-owner of Greenleaf Companies has pleaded guilty in federal court to aiding and abetting a bank fraud conspiracy that was part of a multi-million-dollar mortgage investment scheme.
Eric Gagnepain, 41, of Nixa, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Jan. 9, 2014, to a federal information that charges him with aiding and abetting a conspiracy to commit bank fraud.
Gagnepain co-owned and operated Greenleaf Companies and all of its subsidiaries, along with Scot Dasal, 47, of Republic, Mo., from 2006 through May 2008. During this time, Greenleaf sponsored real estate investment seminars that were designed to recruit potential investors to apply for mortgage loans for the construction and sale of residential homes in southwest Missouri and northwest Arkansas.
By pleading guilty today, Gagnepain admitted that he aided and abetted others in the creation and submission of fraudulent mortgage loan documents. These mortgage loan documents contained material false statements regarding the true source of monies provided at the time of closing, as well as fraudulently omitting the payment of monies obtained from the sale of the real estate properties.
Dasal was sentenced on Nov. 21, 2013, to three years in federal prison without parole and ordered to pay $2,911,209 in restitution. Dasal pleaded guilty to aiding and abetting a bank fraud.
According to the plea agreement, Gagnepain derived more than $1 million in gross receipts from his criminal conduct. The total loss amount resulting from the bank fraud conspiracy is between $2.5 million and $7 million.
The plea agreement cites a specific instance of such fraud that occurred on March 12, 2008. Gagnepain and others created false mortgage loan documents that were submitted to Flagstar Bank. The loan documents fraudulently stated that the borrower had provided their own monies at the time of the closing; in reality, however, Greenleaf provided monies that were falsely identified as “cash from borrower.” Additionally, the loan documents omitted the fact that Greenleaf would receive monies from the sale of the real estate property from the seller. If Flagstar Bank had known the true source of the monies provided on behalf of the borrower, or that Greenleaf was receiving monies from the sale of this real estate property, the bank would have denied the mortgage loan application.
Under the terms of the plea agreement, Gagnepain will be sentenced to four years in federal prison without parole and must pay restitution in the amount ordered by the court. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. Gagnepain must also plead guilty to state charges (State of Missouri vs. Eric Christian Gagnepain). The sentence in the state case will be served concurrently with the federal sentence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Jury Convicts Connecticut Man, Georgia Woman of False Tax ClaimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New Fairfield, Conn., man and a Chickamauga, Ga., woman were convicted in federal court today of making false claims for tax refunds.
Nkosi Gray, 40, of New Fairfield, Conn., and Kimberly Johnson, 43, of Chickamauga, Ga., were each found guilty of one count of filing false claims for a tax refund.
Gray and Johnson each filed fraudulent tax returns that falsely claimed refunds due to over-withholding of taxes. Gray received a $278,874 refund and Johnson filed a claim for a $61,959 refund on behalf of another person identified in the federal indictment as “M.L.F.” These claims utilized fictitious 1099-OID tax forms (which are legitimately used to pay taxes on income received from the interest on bond investments). In actuality, they had not received interest income from the banks and lenders listed on their Forms 1099, nor had any money been over-withheld.
Co-defendant Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo., pleaded guilty on Nov. 7, 2013, to being the leader of a conspiracy to defraud the government that utilized this fraudulent practice. 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.
Gray, who received a refund of $278,874 on Oct. 17, 2008, paid a $15,000 fee to Poynter a few days later. After the refund was deposited into his account, Gray made 56 withdrawals over the next two months. By withdrawing the cash in increments of less than $10,000, Gray (a former bank employee) avoided the requirement for his bank to report those transactions to the government.
Johnson filed a refund claim for $61,959 in April 2009 on behalf of “M.L.F.” and that refund was issued.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about six hours over two days before returning the guilty verdicts, ending a trial that began Monday, Jan. 6, 2014.
Under federal statutes, Gray and Johnson are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. Separate sentencing hearings are scheduled for May 15, 2014.
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, 36, of Cumming, Ga.; Mark J. Murray, 51, of Newton, Ala.; John V. Perdido, 57, 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.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received interest and dividend income and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ purported interest and dividend income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – such income. No financial institution had issued any 1099-OID forms. Instead, the income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of interest and dividends.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).
U.S. Attorney's Office Collects over $26.5 Million in Civil, Criminal Actions in 2013Read the Press Release
KANSAS CITY, Mo. – United States Attorney Tammy Dickinson announced today that the Western District of Missouri collected more than $26.5 million in criminal and civil actions in Fiscal Year 2013. Of this amount, more than $14.8 million was collected in criminal actions, more than $6.2 million was collected in civil actions and nearly $5.5 million was collected through the seizure of assets that were forfeited to the government.
The Western District of Missouri also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $10.6 million in cases pursued jointly with these offices, primarily in civil actions.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The pursuit of justice involves not only prosecuting criminals, but being diligent to collect the fines levied by the court and restitution payments on behalf of the victims of crime,” Dickinson said. “I am determined that criminals will not profit from their crimes, but will lose their ill-gained assets through forfeiture. And I am equally determined that those involved in civil actions must pay the government what they owe.
“Our office had a budget of $10.5 million in FY 2013 and collected more than $26.5 million that was owed to the court, to victims of crime and to the government,” Dickinson added. “By generating revenue of more than double our annual budget, taxpayers can be assured that we are efficiently allocating our budget resources to safeguard their interests.”
Nearly $15 million in civil and criminal debts was collected in the Western District of Missouri in 2012 and nearly $24 million was collected in 2011.
US v. Sheffler, et al. : $3.8 million
As an example of FY 2013 collections, an Independence, Mo., business owner and a Wichita, Kan., attorney were among 18 defendants indicted in a more than $17 million, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they allegedly were sold primarily on Indian reservations. In addition to the federal indictment, an undercover operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives resulted in a $3.5 million civil forfeiture and a non-prosecution agreement that requires a Winnebago, Neb. company to pay a $300,000 penalty.
Following the seizures that occurred as a result of the investigation, the U.S. Attorney’s Office started a 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.
Illegal Online Gambling: $921,416
As a result of a nationwide federal investigation into illegal online gambling, $921,416 was seized from the bank accounts of Integration, Inc., of Enfield, Conn.; The Club Services of Las Vegas, Nev.; Triple Beam Media of Williamsville, N.Y.; and Ontario Limited/Aramor Payments of Toronto, Ontario, Canada.
Integration operates as a third party processor involved in, among other things, the distribution of commercial rebate checks. Investigation determined that Integration also facilitated the distribution of winnings obtained through on-line Internet gambling Web sites such as Bodog Poker. Bank records for Integration indicated the company made disbursements, on behalf of Triple Beam Media, a shell corporation, to 8,753 residents of the United States, including 252 Missouri residents and 105 individuals who resided in the Western District of Missouri.
Under federal statutes, processing wires and mailing checks that represent the funds derived from illegal gambling constitutes money laundering. The transmission of gambling information constitutes a “specified unlawful activity” under the money laundering statutes. Any property involved in a money laundering transaction is subject to forfeiture to the government. Processing wires and mailing checks that represent the funds derived from illegal gambling also violates federal law regarding unlicensed money transmitting businesses.
Mario Escutia: $492,865
Law enforcement officers seized $492,865 that was found hidden in a Freightliner tractor and trailer driven by Mario Nambo Escutia, an owner-operator from California, during a routine inspection and compliance check at the commercial vehicle scales on Interstate 44 in Joplin, Mo. A drug-sniffing dog gave a positive indication for the presence of the odor of controlled substances from the money as well as inside the truck, but no controlled substances were found. Escutia was not prosecuted criminally, but the government filed a complaint for civil forfeiture against the money that was seized.
The money was furnished or intended to be furnished in exchange for a controlled substance, or it was proceeds traceable to such an exchange, or it was used or intended to be used to facilitate a drug-trafficking violation. As a result, the money is liable to condemnation and to forfeiture to the government.
US v. Arnold: $207,817
Jesse Arnold of Sarcoxie, Mo., forfeited $207,817 that was seized from his business bank account. He was sentenced to one year and one day in federal prison without parole for structuring financial transactions in order to evade federal reporting requirements as part of a scheme to sell stolen cooking oil that was intended for recycling. Arnold operated 4 States Grease Company, a collection facility for spent cooking oil. He admitted that he had reason to believe he was buying spent cooking oil that had been stolen by various drivers. In order to avoid federal reporting requirements that could bring unwanted scrutiny to 4 States, Arnold deliberately and knowingly structured withdrawals from his business checking account. Arnold withdrew some or most of the money in order to purchase the stolen spent cooking oil. Arnold made numerous withdrawals on consecutive days that were individually less than $10,000, but which totaled more than $10,000 when added together. Under federal law, banks must file a currency transaction report for any financial transaction over $10,000. The crime of structuring occurs when a person, in order to knowingly avoid the financial institution from filing a currency transaction report, breaks up the transaction into smaller components that are less than $10,000.
US v. David W. Scott: $182,617
David W. Scott pleaded guilty to his role in a conspiracy to distribute K2 (synthetic marijuana) and forfeited to the government $182,617 that was received in exchange for the distribution of K2. Scott owned and operated Country Express in Mountain Grove, Mo., which distributed K2. The money was seized by law enforcement officers who discovered it during a search of Scott’s Lincoln Navigator. Officers also seized hundreds of packages of K2 from Scott’s store, vehicle and residence, and thousands of packages of K2 from a storage unit.
Collection Amounts
The Western District of Missouri collected $26,575,724 in criminal and civil actions in Fiscal Year 2013. Of this amount, $14,823,396 was collected in criminal actions (such as fines and victim restitution), $6,283,214 was collected in civil actions, and $5,469,114 was collected in asset forfeiture actions.
(NOTE: Collection amounts released nationally by the Department of Justice today report $4,819,346 in forfeited assets deposited into the Department of Justice Assets Forfeiture Fund, which are used to restore funds to crime victims and for a variety of law enforcement purposes. An additional $649,768 in asset forfeitures was collected for the Department of Treasury, for total asset forfeiture collections in the Western District of Missouri of $5,469,114.)
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.St. Joseph Sex Offender Sentenced for Illegally Reentering U.S.Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man who is a citizen of Mexico and a registered sex offender, was sentenced in federal court today for illegally reentering the United States after being deported to Mexico.
Raul Guadalupe Ocon-Marin, 32, of St. Joseph, was sentenced by U.S. District Judge Fernando J. Gaitan to two years and six months in federal prison without parole.
On Sept. 20, 2013, Ocon-Marin pleaded guilty to illegally reentering the United States.
Ocon-Marin was born in Mexico and was admitted into the United States as a lawful permanent resident as the child of a U.S. citizen. According to court documents, Ocon-Marin was convicted in Iowa in 2004 of sexual abuse for having sexual intercourse with a 15-year-old girl. The girl became pregnant but miscarried the child. Ocon-Marin’s legal status was revoked and he was deported to Mexico on Feb. 16, 2005.
The Buchanan County, Mo., Sheriff’s Department was provided with information that Ocon-Marin was illegally residing in St. Joseph. On Jan. 13, 2013, deputies arrested Ocon-Marin for failing to register as a sex offender. Ocon-Marin was convicted on Feb. 14, 2013, in Buchanan County Circuit Court. He was released on parole on June 7, 2013, and taken into federal custody.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Jefferson City Man, Woman Plead Guilty to $100,000 Student Loan FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man and woman pleaded guilty in federal court today to engaging in a bank fraud scheme in which they unlawfully received more than $100,000 in student loans under their child’s name.
Lisa Kay Baker, 53, and David Waymon Baker, 56, both of Jefferson City, each pleaded guilty in separate appearances before U.S. Magistrate Judge Matt J. Whitworth to two counts of bank fraud. Lisa and David Baker (who at the time of the criminal conduct was employed by the Missouri Commission on Human Rights) were married during the criminal scheme but divorced in 2009.
By pleading guilty today, Lisa and David Baker each admitted that they received 11 student loans, totaling $102,088, in the name of their child (identified in the indictment as “RLB”) without his/her knowledge or consent from July 2005 to September 2007. Each application that was submitted was filled out by at least one or both of the defendants, and then one or the other (or a third person at their direction) forged the signature of RLB.
RLB attended William Woods University from 2003 through 2007, then graduated from the University of Missouri with a master’s degree in 2009. RLB obtained student loans from Sallie Mae to pay for tuition, room and board, and books for both his/her undergraduate and master’s degrees. Sallie Mae submitted the proceeds from RLB’s student loans directly to the schools RLB was attending; her parents did not help RLB pay for any college expenses.
At the end of 2011, RLB began receiving telephone calls from a collection agency, claiming that payments were not being made on RLB’s student loans. In January 2012, RLB examined his/her credit report and found that there were multiple student loans on RLB’s credit history that had not been obtained by RLB.
The Bakers admitted that they made no payments on the student loans. Lisa Baker’s mother, who was listed as a co-borrower on some of the fraudulent loans, made some payments on the loans. Sallie Mae charged off all 11 student loans obtained by the Bakers, with an aggregate principal balance of $95,752.
Under federal statutes, each of the Bakers is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $2 million and an order of restitution. 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, the Cole County, Mo., Prosecuting Attorney’s Office and the Jefferson City, Mo., Police Department.Five Columbia Residents Among 10 Defendants Indicted for Conspiracy to Distribute a Ton of MarijuanaRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than 2,200 pounds of marijuana in Boone County, Mo.
Richard Marieo Hunter, 47, Maneka Rochon Germany, 37, Brian Christopher Young, 31, Marlin Deandrea Allen, 41, and Sharod Oneal Clark, 36, all of Columbia, Mo., Gene Edward Rodgers, Jr., 40, of Kansas City, Mo., Jesus Guzman-Vazquez, 33, of Kansas City, Kan., Wendell Eugene Woodson, 36, of St. Louis, Mo., Jorge Alberto Cabada-Lopez, 49, of San Luis, Ariz., and Jennifer Wall, 42, address unknown, were charged in a 14-count indictment that was returned under seal on Oct. 3, 2013, by a federal grand jury in Jefferson City, Mo. The indictment was unsealed and made public today upon the arrests and initial court appearances of Hunter, Germany and Woodson in Jefferson City and of Guzman-Vazquez in Kansas City, Mo.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute 1,000 kilograms or more of marijuana in Boone County from February 2010 to March 2013.
In addition to the conspiracy, Hunter, Cabada-Lopez, Guzman-Vazquez and Germany were charged together in one count of possessing 100 kilograms or more of marijuana with the intent to distribute on Jan. 24, 2013.
Hunter is also charged in 12 counts of using a telephone to facilitate the drug-trafficking conspiracy. Allen, Young, Wall, Cabada-Lopez, Germany and Woodson are each charged along with Hunter in two of those counts.
The federal indictment also contains a forfeiture allegation, which would require Hunter to forfeit to the government any property derived from the proceeds of the alleged drug-trafficking conspiracy, or used to facilitate the commission of the alleged drug-trafficking conspiracy, including his residence.
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 Drug Enforcement Administration, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.Business Owner Indicted for $493,000 Employment Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., business owner was indicted by a federal grand jury today for a scheme to defraud the government by failing to pay over to the Internal Revenue Service more than $260,000 that he collected from his employees in employment taxes. Along with more than $232,000 that he allegedly failed to pay as his employer portion of the taxes, the total loss to the government was more than $493,000.
Joseph Patrick Balano, 52, of Kansas City, Mo., was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
According to the indictment, Balano was the owner of Global Employment Group, Inc., doing business as Staffing Connections (Global Employment) in Grandview, Mo., and Kansas City, Mo. Two earlier businesses – Labor Connections and Labor Connections II – were dissolved in 2006, the indictment says, ostensibly because of employment tax issues. In their place, Balano formed Global Employment in December 2006. Employees who had been working for Labor Connections and Labor Connections II began working for Global Employment. Business operations stayed in the same location.
Today’s indictment alleges that Balano withheld employment taxes from his employees; however, instead of paying over those taxes to the government, Balano allegedly kept most of those taxes for his own personal use. The total allegedly withheld from employees but not paid to the IRS from April 2008 to April 2009 was $260,770. In addition, Balano allegedly failed to pay the employer portion of the taxes to the IRS as well, in the amount of $232,672. The total amount of loss to the government was $493,443.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
KC Man Charged with Robbing Brookside BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been charged in federal court with robbing Bank Midwest.
Casey M. Widman, 58, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Dec. 31, 2013, with stealing $838 from Bank Midwest.
According to an affidavit filed in support of the federal criminal complaint, Widman entered Bank Midwest, 6249 Brookside, Kansas City, at about 1:45 p.m. on Monday, Dec. 30, 2013. Widman allegedly approached one of the tellers, presented a black pistol and said he wanted to make a withdrawal in “all fifties and hundreds.” The teller gave Widman the cash, the affidavit says, and he fled from the bank on foot.
A witness told police officers that he saw a blue Ford Taurus, with a driver and two passengers, parked near the bank for about 15 minutes. The vehicle left the bank immediately after the robbery occurred. An officer saw a vehicle that matched that description and followed it. When the driver stopped at a gas station, all three occupants – including Widman, who was sitting in the back seat – were taken into custody.
When federal agents searched the vehicle, they found a pellet pistol. When agents searched Widman, they found $389 under his right boot sole. The other occupants of the vehicle have not been charged.
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 Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Lee's Summit Man Pleads Guilty to Cyberstalking, Possessing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man pleaded guilty in federal court today to cyberstalking one victim and possessing child pornography images of another victim.
August W. Jentsch, 25, of Lee’s Summit, pleaded guilty before U.S. District Judge Gary A. Fenner to cyberstalking and possessing child pornography. Jentsch was taken into federal custody at the conclusion of the hearing.
According to today’s plea agreement, the first victim notified the police department at the University of Minnesota (where she was attending school) that Jentsch had broken into her e-mail account and obtained nude images of her that were taken when she was 16 years old. The victim had briefly dated Jentsch in December 2007. The victim stated the 20-day relationship was not romantic and never physically intimate.
Jentsch stalked the victim from Jan. 2, 2008, to Aug. 29, 2011, by showing up at her work and residence, texting and e-mailing her, and leaving gifts for her. Beginning in September 2011, Jentsch set up fictitious Facebook profiles of the victim and posted the nude photos and video he had obtained from her e-mail account. This happened four or five times and each time the victim contacted Facebook to have the accounts taken down. Jentsch hacked into the victim’s gmail, Yahoo! E-mail, and Facebook accounts and assumed control of the accounts by changing the passwords. He sent random e-mails with the nude photos of the victim to people in her e-mail contacts. Jentsch also used the victim’s nude images and identity to set up another social media account to invite others to get in touch with the victim through Facebook for sexual activity.
A restraining order was served on Jentsch on Oct. 13, 2011. When a state search warrant was executed at Jentsch’s residence, officers found the images and video of the victim on an SD card that was in his computer. Investigators also discovered a video of child pornography on Jentsch’s computer that involved a second victim. The video portrayed the second victim, who was 15 years old, engaged in sexual activity with Jentsch.
Under the terms of today’s plea agreement, Jentsch is subject to a sentence between five years and 10 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 Teresa Moore. It was investigated by the University of Minnesota Police Department and the Lee’s Summit, Mo., Police Department.Four KC Men Charged with Armed Robbery Following Car Chase, CrashRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Kansas City, Mo., men were charged in federal court today with armed robbery following a high-speed police chase that ended in a crash that sent one of the men to the hospital.
Randolph E. Wells, 28, Jamal L. Vassie, 24, Gary S. Dorch, 20, and Sergio A. Rascoe, 27, all of Kansas City, were charged in a two-count federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Wells, Vassie and Dorch remain in federal custody pending a detention hearing on Thursday, Dec. 26, 2013. Rascoe remains hospitalized with injuries from the collision.
Each of the four defendants is charged with one count of armed robbery and one count of possessing a firearm during and in relation to a crime of violence.
According to an affidavit that was filed in support of the criminal complaint, the defendants carjacked a Chrysler Sebring from an elderly woman at a car wash before driving to Public Storage, 9820 Holmes in Kansas City, where they stole $80 from the business as well as a wallet, identification and cell phone from an employee.
Shortly after the carjacking, the affidavit says, law enforcement officers saw the stolen Sebring being driven in tandem with a black Ford Taurus that had been identified with past robberies. The FBI and the Kansas City Police Department have been conducting an investigation into a series of armed robberies of various businesses in the metropolitan area. During the course of the investigation, the affidavit says, the Taurus was observed near robberies that occurred in and around Kansas City.
The Sebring and the Taurus both drove to Public Storage, and the Taurus parked on a side street while Dorch, a passenger in the Sebring, allegedly pulled a red bandana up over his face and entered the business. Immediately after the robbery, law enforcement officers arrested Wells, the driver of the Taurus, and Vassie, a passenger in the Taurus. A loaded Cobray 9mm pistol with an extended magazine was lying on the back seat.
The Sebring, driven by Rascoe, fled north on Holmes and exited onto I-435 East while being pursued by law enforcement personnel with their lights and sirens activated. Rascoe refused to stop and the Sebring was involved in a vehicular crash near the intersection of Blue Parkway and Elmwood. Rascoe and Dorch were arrested. A loaded Taurus .40-caliber pistol was removed from Dorch’s front pants pocket.
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 Patrick Edwards. It was investigated by the FBI and the Kansas City, Mo., Police Department.KC Man Sentenced to 20 Years for Illegal FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Dennis T. Hart, 55, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 20 years in federal prison without parole.
On Sept. 17, 2013, Hart pleaded guilty to being a felon in possession of a firearm. Hart was arrested after police officers responded to a report of an outside disturbance at about 12:56 p.m. at 29th and Prospect in Kansas City, Mo., on April 7, 2013, following an altercation between Hart and another person. After punching the victim in the face, Hart pulled up his sweater to show the victim he had a loaded Lorcin .380-caliber pistol tucked into his waistband. When the victim drove away, Hart got on a bus and left.
Officers later located Hart along the bus route. While struggling with the officers during his arrest, Hart pulled out the firearm and dropped it on the ground.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hart has three prior felony convictions for possessing a controlled substance, a prior felony conviction for distributing a controlled substance, two prior felony convictions for forgery, two prior felony convictions for assault, and prior felony convictions for tampering and fraud.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Buffalo Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Buffalo, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Intenet.
Emilio R. Haro, 30, of Buffalo, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Oct. 3, 2013, federal indictment.
Law enforcement officers from two separate agencies independently identified Haro’s computer during their investigations into the sharing of child pornography over peer-to-peer file-sharing networks.
Under federal statutes, Haro is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force, the Republic, Mo., Police Department and 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."Two Indicted for Howell County Drug Trafficking, Airplane and Firearms SeizedRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marble Hill, Mo., man and a Shirley, N.Y., man have been indicted by a federal grand jury for a marijuana trafficking conspiracy in which the government has seized an aircraft and dozens of firearms.
Joshua William Vawter, 36, of Marble Hill, and Angelo Charles Vetrano, 33, of Shirley, were charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Dec. 17, 2013. Vawter and Vetrano were arrested at West Plains Regional Airport in West Plains, Mo., on Oct. 31, 2013.
The federal indictment alleges that Vawter and Vetrano participated in a conspiracy to distribute 50 kilograms or more of marijuana from Oct. 26 to Nov. 1, 2013, in Howell County, Mo. Vawter and Vetrano are also charged with one count of possessing 50 kilograms or more of marijuana with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require Vawter and Vetrano to forfeit to the government any property used to commit the alleged violations, or any property obtained as proceeds of the alleged violations, including a 1968 Piper Cherokee Six aircraft seized from Vawter and $1,800 seized from Vawter and Vetrano on Oct. 31, 2013, as well as $75,000 in cash, a 2009 John Deere tractor and 60 firearms, all of which was seized from Vawter’s residence.
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 Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Air and Marine Operations Center (AMOC) of the Department of Homeland Security (DHS), DHS Custom and Border Patrol, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the Bollinger County, Mo., Sheriff’s Department and the Missouri South Central Drug Task Force.Sex Offender Indicted for Failure to Register, Possessing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marble Hill, Mo., man and a Shirley, N.Y., man have been indicted by a federal grand jury for a marijuana trafficking conspiracy in which the government has seized an aircraft and dozens of firearms.
Joshua William Vawter, 36, of Marble Hill, and Angelo Charles Vetrano, 33, of Shirley, were charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Dec. 17, 2013. Vawter and Vetrano were arrested at West Plains Regional Airport in West Plains, Mo., on Oct. 31, 2013.
The federal indictment alleges that Vawter and Vetrano participated in a conspiracy to distribute 50 kilograms or more of marijuana from Oct. 26 to Nov. 1, 2013, in Howell County, Mo. Vawter and Vetrano are also charged with one count of possessing 50 kilograms or more of marijuana with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require Vawter and Vetrano to forfeit to the government any property used to commit the alleged violations, or any property obtained as proceeds of the alleged violations, including a 1968 Piper Cherokee Six aircraft seized from Vawter and $1,800 seized from Vawter and Vetrano on Oct. 31, 2013, as well as $75,000 in cash, a 2009 John Deere tractor and 60 firearms, all of which was seized from Vawter’s residence.
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 Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Air and Marine Operations Center (AMOC) of the Department of Homeland Security (DHS), DHS Custom and Border Patrol, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the Bollinger County, Mo., Sheriff’s Department and the Missouri South Central Drug Task Force.Former Federal Employee Pleads Guilty to $113,000 Scheme to Steal from Co-workersRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former IT specialist for the U.S. Department of Agriculture pleaded guilty in federal court today to a scheme to steal $113,000 from three co-workers, one of whom is blind.
Paula M. Steen, 49, of Overland Park, Kan., pleaded guilty before U.S. District Judge Gary A. Fenner to wire fraud. Steen was employed as an IT specialist for the USDA Farm Service Agency at the USDA facility at 6501 Beacon Drive, Kansas City, Mo.
By pleading guilty today, Steen admitted that she engaged in a wire fraud and identity theft scheme to steal from her co-workers at USDA over a four-year period, from Dec. 30, 2008, to Dec. 29, 2012. Steen attempted to steal at least $113,282; the actual loss totaled $103,682. Under the terms of today’s plea agreement, Steen must pay a money judgment of $103,682.
Steen admitted that she charged $57,693 on the credit accounts of one co-worker (identified in court documents as “S.S.”), who is legally blind. Steen later repaid $18,278 of that amount to creditors. Steen also secured four personal loans from this co-worker totaling $48,171, which she did not repay. Steen attempted to borrow $2,600 in the co-worker’s name, but after submitting the personal loan application to a financial institution, she later withdrew it.
Steen admitted that she illegally transferred $16,096 from another co-worker’s credit union account to her own creditors and to her own bank account. (This co-worker is identified in court documents as “R.H.”) Steen also attempted to illegally transfer another $2,000.
Steen attempted to open a joint credit card account in the name of a third co-worker (identified in court documents as “J.S.”), using his Social Security number and date of birth without his authorization.
Under federal statutes, Steen is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Department of Agriculture, Officer of Inspector General.Raymore Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raymore, Mo., man was sentenced in federal court today for possessing thousands of images of child pornography.
Malcolm J. Wolf, 33, of Raymore, was sentenced by U.S. District Judge Dean Whipple to seven years in federal prison without parole. According to court documents, Wolf legally changed his name on April 8, 2011, from Jose Lorenzo Lopez.
On Feb. 4, 2013, Wolf pleaded guilty to one count of attempting to receive child pornography and one count of possessing child pornography.
Federal agents, while conducting an undercover investigation of a Web site sharing child pornography, identified Wolf’s computer as having accessed images of child pornography from the site in January 2011. When agents executed a search warrant at Wolf’s residence, they found six computers and seven loose hard drives that contained thousands of images of child pornography, including hundreds of movies of child pornography. The children depicted in those images and movies ranged in age from babies to teens.
Under the terms of his plea agreement, Wolf must pay a total of $10,000 in restitution to two of the victims portrayed in those images and movies, or $6,000 if he pays the restitution within 30 days of his sentencing date.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by 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."Grocery Owners Sentenced for $151,000 Food Stamp FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., grocery store owners have been sentenced in federal court for their roles in a $151,000 food stamp fraud conspiracy.
Ibrahim Alanabuki, 45, and his wife, Mona Jwad, 33, who are both naturalized U.S. citizens from Iraq, were sentenced in separate hearings before U.S. District Judge Greg Kays on Monday, Dec. 16, 2013. Alanabuki was sentenced to 15 months in federal prison without parole. The court also ordered him to forfeit to the government $50,000, which represents the proceeds he received from the conspiracy. Jwad was sentenced to five years of probation.
Alanabuki and Jwad are the owners of Al-Forat Bakery and Store at 4436 St. John Ave., Kansas City, Mo. Both Alanabuki and Jwad, as well as co-defendant Hani Al-Zaidi, 47, an Iraqi national, have pleaded guilty to participating in a 15-month-long conspiracy to commit food stamp fraud and wire fraud. They admitted that they defrauded the Supplemental Nutrition Assistance Program (SNAP), better known as food stamps, which helps lower-income individuals and families buy food.
Al-Zaidi recruited homeless people to give him their SNAP electronic benefit cards and their PINs in exchange for a percentage of the benefits in cash. Al-Zaidi would then take the benefit cards to Al-Forat, where Alanbuki completed a fraudulent transaction to make it appear as though he sold food items to the recipients in amounts ranging from $25 to $250. Alanbuki split the proceeds of the fraudulent transactions, kicking back about 50 percent in cash to the food stamp recipients, about 20 percent to Al-Zaidi and keeping the remainder.
Alanabuki also accepted SNAP benefits to pay the beneficiary’s utility bills, or sell the beneficiary ineligible items such as cigarettes or calling cards. Alanbuki and Jwad also used benefit cards and PINs belonging to others to buy their own food.
Al-Zaidi was sentenced on Oct. 8, 2013, to time already served in custody (approximately 15 months) and ordered to pay restitution.
This case was prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the U.S. Department of Agriculture.Former Joplin Teacher Pleads Guilty to Sexual Exploitation of a Child, Faces 28 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Joplin, Mo., middle school teacher has pleaded guilty in federal court to sexually exploiting a child victim to produce child pornography.
Charles D. Gastel, 40, of Carterville, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Dec. 13, 2013. Gastel was formerly a science teacher at South Middle School in Joplin.
By pleading guilty today, Gastel admitted that he sexually assaulted a teenage victim, identified in court documents as Jane Doe, over a period of approximately nine years. Gastel also admitted that he video-recorded some of the sexual assaults.
Under the terms of his plea agreement, Gastel will be sentenced to 28 years in federal prison without parole. Following his prison term, Gastel must spend the rest of his life under supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
On July 13, 2013, a Carterville, Mo., police officer interviewed the 19-year-old victim at her home in Lamar, Mo. She reported that she had been sexually victimized by Gastel repeatedly, beginning when she was 10 years old. Jane Doe reported that during some of the assaults, Gastel used a digital video recorder to record them engaging in sexual acts.
On July 17, 2013, Gastel was interviewed at his residence by the investigators. He initially told the investigators that he did not have videos on his computer. When asked for consent to search his computer, Gastel replied that he wanted to talk to a lawyer because he had files on his computer that would end his teaching career. Gastel was then placed under arrest and officers obtained a search warrant for his residence. A forensic preview of the digital media seized by officers yielded the discovery of several video files that depicted Gaston sexually assaulting Jane Doe when she was 16 years old.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Carterville, Mo., Police Department, the Southwest Missouri Cybercrime Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."West Plains Men Sentenced for Drug TraffickingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two West Plains, Mo., men have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine and marijuana in Howell County, Mo.
Joseph R. Ledwa, 63, and David L. Collins, 38, both of West Plains, were sentenced by U.S. District Judge Beth Phillips on Thursday, Dec. 12, 2013. Ledwa was sentenced to 15 years in federal prison without parole and must forfeit to the government $43,871 that was seized by law enforcement officers during the investigation, as well as 10 firearms and miscellaneous ammunition that were seized during the investigation. Collins was sentenced to eight years and four months in federal prison without parole and must forfeit to the government two rifles that were seized by law enforcement officers during the investigation.
Ledwa pleaded guilty on May 28, 2013, to his role in a conspiracy to distribute 50 grams or more of methamphetamine and 100 kilograms or more of marijuana in Howell County from April 2009 to May 19, 2011. Ledwa also pleaded guilty to one count of possessing a firearm in furtherance of that drug-trafficking conspiracy, and two counts of illegally possessing firearms.
According to Ledwa’s plea agreement, the total amount that the government can prove Ledwa distributed is at least 50 grams, but less than 150 grams of actual methamphetamine and at least 2.5 kilograms but less than five kilograms of marijuana.
Ledwa admitted that he was in possession of a Ruger .45-caliber pistol on Dec. 20, 2009, which he carried in order to protect himself while distributing methamphetamine and marijuana.
Ledwa also admitted that he was in possession of 11 firearms – including pistols, revolvers, shotguns and rifles – on Dec. 20, 2009. He was also in possession of a Saiga 7.62x39-caliber rifle on Aug. 13, 2010. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ledwa has a prior felony conviction for robbery.
On Nov. 19, 2012, Collins pleaded guilty to his role in the drug-trafficking conspiracy, to being a felon in possession of firearms and to possessing a firearm in furtherance of a drug-trafficking crime.
Collins admitted that he initially received “eight ball” (3.5 grams) quantities of methamphetamine from Ledwa to distribute, but then began to receive larger amounts (seven to 14 grams). Within a couple of months, Collins was receiving one to four ounces of methamphetamine a week from Ledwa. During the conspiracy, Collins also received marijuana from Ledwa for distribution.
On two occasions, Collins admitted, he assisted Ledwa in obtaining methamphetamine from Ledwa’s source of supply. On both occasions the two traveled to pick up methamphetamine. On one occasion, Ledwa gave Collins $10,000 and Collins went to Kansas City and obtained 7.5 ounces of methamphetamine from one of Ledwa’s sources.
Collins also admitted that he was in possession of a Smith & Wesson .38-caliber revolver on May 19, 2011. On this date, Collins was in possession of a distribution amount of methamphetamine and marijuana. Law enforcement officers executed a search warrant at Collins’s residence the same day and found various controlled substances in the master bedroom, along with the revolver, which Collins admitted he had for protection.
Collins, who has a prior felony conviction, was also in possession of a Mossberg .22-calbier rifle and a Remington .22-caliber rifle on May 19, 2011.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Central Drug Task Force, the Howell County, Mo., Sheriff’s Department, the Kansas City, Mo., Police Department, and the Grandview, Mo., Police Department.Reed Springs Man Pleads Guilty to Making False Tax ClaimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reed Springs, Mo., man pleaded guilty in federal court today to making more than $124,000 in fraudulent tax refund claims.
Michael R. Jett, 47, of Reed Springs, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with making a false claim against the government.
By pleading guilty today, Jett admitted that he filed 22 false or fraudulent tax returns in order to obtain larger tax refunds between January 2009 and January 2012. Jett prepared tax returns for himself, his family and for other individuals using fraudulent W-2 forms issued by companies under his control, including Air1Assault, Creative Designs, Southwest Missouri Home Products and Corvette Specialist. Using the fraudulent W-2 forms, Jett prepared tax returns requesting tax refunds in amounts larger than actually owed. Those refunds were electronically deposited in bank accounts in his name, or the names of family members.
Jett requested a total of $124,493 in refunds on those 22 tax returns, which actually qualified for only $19,137 in legitimate refunds. The total loss for the scheme was $105,356.
Under federal statutes, Jett 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 Assistant U.S. Attorney Gary Milligan. It was investigated by IRS-Criminal Investigation.
Columbia Man Indicted for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been indicted by a federal grand jury for illegally possessing a firearm.
Channing Tyler Williams, 20, of Columbia, was charged in a three-count indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, Dec. 11, 2013.
The federal indictment alleges that Williams was in possession of a Ruger .45-caliber semi-automatic pistol on Nov. 21, 2013. Williams, who has a prior felony conviction for unlawful use of a weapon, was charged with being a felon in possession of a firearm. Williams was also charged with being an unlawful user of a controlled substance in possession of a firearm, and with possessing a stolen firearm.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Boone County, Mo., Sheriff’s Department and the Columbia, Mo., Police Department.Arkansas Man Indicted for Additional RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Bella Vista, Ark., man who was previously indicted for robbing Alliant Bank in Blackwater, Mo., has been indicted by a federal grand jury for three additional robberies.
Timothy Patrick Hoyt, 43, of Bella Vista, was charged in a four-count indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, Dec. 11, 2013. This superseding indictment replaces the original indictment, returned on Nov. 7, 2013, that charged Hoyt with stealing $5,123 from Alliant Bank on June 26, 2013.
The superseding indictment alleges that Hoyt robbed the Subway restaurant at 330 N. Massey Blvd., Nixa, Mo., on July 12, 2013; the Subway restaurant at 1820 W. 32nd St., Joplin, Mo., on July 14, 2013; and the Sally Beauty Supply Store at 2007-C W. Foxwood Dr., Raymore, Mo., on Aug. 6, 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 FBI, the Cooper County, Mo., Sheriff’s Department and the Altoona, Iowa, Police Department, the Nixa, Mo., Police Department, the Joplin, Mo., Police Department and the Raymore, Mo., Police Department.
Mission Hills Woman Indicted for Cayman Island Tax Scheme, Lying to Federal AuthoritiesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mission Hills, Kan., woman was indicted by a federal grand jury today for using numerous foreign trusts and secret Cayman Island bank accounts as part of a scheme to avoid paying more than $7 million in income taxes, and for lying to federal authorities concerning her Cayman Island interests.
“Offshore tax evasion is an issue of fundamental fairness,” Dickinson said. “Americans who unlawfully hide their money offshore aren’t paying the taxes they owe, while citizens who play by the rules are forced to pick up the slack and foot the bill.
“Americans with secret offshore bank accounts still have an opportunity to voluntarily disclose those accounts to the Internal Revenue Service to avoid going to jail,” Dickinson added. “I encourage those taxpayers to do the right thing and take advantage of the IRS’s offshore voluntary disclosure program. Taxpayers can voluntarily come back into compliance so they properly report and pay their taxes.”
Verna Cheryl Womack, 62, of Mission Hills, was charged in a 10-count indictment returned by a federal grand jury in Kansas City, Mo. In addition to her Mission Hills residence, Womack maintains a condominium in the Cayman Islands and a condominium at Trump Towers in New York, N.Y. (Although the Cayman Islands and New York residences are owned by companies that Womack organized under trusts that were created in the Cayman Islands, according to today’s indictment, they are in her custody and control and for her use and enjoyment.)
Womack owned and operated a number of businesses associated with selling liability insurance policies to independent truck drivers. She sold those businesses for more than $35 million in April 2002.
Today’s indictment alleges that Womack opened at least 19 bank accounts and organized a series of nominee companies and trusts in the Cayman Islands to conceal a portion of her income from the IRS. According to the indictment, these corrupt endeavors were part of a scheme that began in 1996 and caused a total tax loss to the government in excess of $7 million.
As part of her corrupt endeavors, the indictment says, Womack repeatedly failed, year after year, to report her financial interests in her nominee companies and trusts to the IRS despite the multiple legal requirements that, as a United States citizen, she do so. Today’s indictment alleges that Womack filed federal tax returns that stated she did not have an interest in or signature authority over any foreign financial accounts, even though Womack knew that was false and fraudulent. For example, the indictment says, Womack maintained a Cayman Island bank account in her own name for several years, with balances ranging from nearly $41,000 to more than $173,000. The indictment alleges that Womack repeatedly failed, year after year, to report her financial interests in her bank account to the IRS.
Womack is charged with one count of attempting to interfere with the administration of internal revenue laws and nine counts of making a false statement to a government agency.
Wine Collection & Auction
Among its allegations, the indictment cites one of Womack’s nominee companies in the Cayman Islands as an example of Womack’s corrupt endeavors to conceal income from the IRS. Womack exercised ownership, custody and control over Lucy Limited and its assets. Among its assets, the indictment says, Lucy Limited owned (as nominee for Womack) a wine collection that was stored in the basement of Womack’s Mission Hills residence. Womack used a credit card issued by the Bank of Butterfield (in Grand Cayman) in the name of Lucy Limited to purchase at least part of the wine for her collection, for which she paid approximately $1.5 million over the course of several years.
On March 15, 2008, Womack sold approximately half of the wine stored in her basement at an auction house in New York for $1.6 million. The indictment alleges that she attempted to use her nominee company, Lucy Limited, and its financial accounts at the Bank of Butterfield in Grand Cayman to conceal the revenues and profits she derived from the sale of the wine.
Following the sale, the indictment says, Womack personally directed the auction house to wire more than $1.6 million in a series of transfers to a Lucy Limited account at the Bank of Butterfield that Womack controlled. Womack allegedly employed a number of false and fraudulent business agreements that appeared to be arm’s length transactions, but were in fact Womack’s self-dealing, resulting in wires of those proceeds back to the United States for Womack’s personal use.
For example, the indictment alleges that a $298,957 wire transfer was falsely and fraudulently represented in Lucy Limited’s financial statements as a management fee due to Womack. Womack also allegedly created a false and fraudulent document purporting to be a lease agreement between herself and Lucy Limited. Although not created until October 2008, the indictment says, the false and fraudulent lease agreement stated that Lucy Limited would lease the wine cellars in the basement of Womack’s Mission Hills residence for $25,000 per year beginning in 1995 and continuing through at least 2009. The day after creating that fraudulent document, Womack caused a $350,000 wire transfer from the wine auction proceeds to be wired to a bank account under her control in Kansas City, Mo. According to the indictment, Womack falsely and fraudulently represented in Lucy Limited’s financial statements that this wire transfer was payment for rent due under the lease agreement for the years 1995 through 2008.
After the auction, Womack caused the wine that was provided to the auction house but did not sell during the auction to be transported and stored at her condominium at Trump Towers in New York.
As a result of her efforts to disguise the self-dealing nature of these transactions, the indictment says, Womack did not report the income she derived from the sale of the wine on her federal tax return. She did not disclose her control of Lucy Limited or the existence of its bank account to the IRS, the indictment says, and she did not properly report the profit she derived from that sale – at least $851,188 – on her tax return.
On May 19, 2009, Womack testified under oath in a deposition by a trial attorney for the U.S. Department of Justice, Tax Division, regarding a lawsuit that sought to enjoin a third party from providing tax advice. According to the indictment, Womack falsely and fraudulently stated that Lucy Limited’s investors paid her to purchase the wine, manage the wine, and properly contain the wine, when she knew that there were no such investors, that she organized Lucy Limited, and that she exercised ownership, custody and control over Lucy Limited and its assets.
False Statements
Today’s indictment also alleges that Womack repeatedly lied to federal government officials and agents about her interests in Cayman Island businesses, trusts and bank accounts. On one occasion, Womack allegedly lied to two FBI agents, falsely claiming that she did not own any foreign businesses and that those businesses were owned by other investors, when she knew that no other investors existed. Womack provided a list of her financial accounts to an FBI agent in relation to a separate federal criminal investigation. Womack’s list of her accounts did not include any of her foreign bank accounts.
During the May 19, 2009, deposition, Womack allegedly repeatedly lied under oath about her financial interests in the Cayman Islands. During that deposition, the indictment says, Womack knowingly made numerous false and fraudulent statements regarding her Cayman Island trusts and business interests. Today’s indictment charges Womack with nine counts of making material false statements during that deposition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the FBI.
IRS Offshore Voluntary Disclosure Program
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
Since 2006, American law enforcement agencies have had some, but limited, ability to obtain financial records concerning foreign accounts of American citizens in so-called tax havens. But a new Foreign Account Tax Compliance Act (FATCA) became law in the United States in March 2010 and is taking effect abroad on a country-by-country basis. The IRS and law enforcement are now more readily able to obtain the records of Americans holding foreign bank accounts in countries including Switzerland, the Cayman Islands and Costa Rica. FATCA requires foreign financial institutions to report the holdings of U.S. taxpayers to the IRS, or else face serious penalties.
The IRS Offshore Voluntary Disclosure Program enables U.S. taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution by voluntarily disclosing previously undisclosed foreign accounts and income. Approximately 38,000 voluntary disclosures from individuals have been made under the Offshore Voluntary Disclosure Initiative.
“How to make an offshore voluntary disclosure”: http://www.irs.gov/uac/How-to-Make-an-Offshore-Voluntary-Disclosure
Former IRS Employees Indicted for Unemployment Benefits FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 former employees of the Internal Revenue Service have been indicted by a federal grand jury for receiving a total of more than $112,000 in unemployment benefits while they worked at the agency.
Michelle Glavin, 32, Christopher Bair, 50, Tiffani Harding, 26, Christopher Castillo, 33, Brenda Jones, 49, and Jesse Love, 60, all of Kansas City, Mo., Priscillia Smith, 46, and Leisa Hunsel, 38, both of Belton, Mo., Shalonda Bradley, 40, of Grandview, Mo., and Berneta Weedin, 59, of Platte Woods, Mo., were charged in a 20-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 10, 2013. The indictment was unsealed and made public upon the arrests and initial court appearances of several defendants.
The federal indictment alleges that each of the 10 defendants claimed unemployment benefits while they were employed by the IRS. The defendants are no longer employed at the IRS. The amount of state and federal benefits fraudulently received by each defendant ranged from $21,348 to $6,127. The amount of fraudulent benefits totaled $112,609.
Each of the 10 defendants is charged with one count of theft of government property and one count of bank fraud. The indictment also contains a forfeiture allegation, which would require each defendant to forfeit to the government a money judgment for the amount of benefits received.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Treasury Inspector General for Tax Administration and the Missouri Department of Labor and Industrial Relations, Division of Employment Security.West St. Louis Man Pleads Guilty to Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West St. Louis, Mo., man pleaded guilty in federal court today to robbing First Federal Bank in North Kansas City, Mo.
James A. Yokum, 43, of West St. Louis, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a June 20, 2013, federal indictment.
By pleading guilty today, Yokum admitted that he stole $600 from First Federal Bank, 1200 Armour Road in North Kansas City, on June 11, 2013.
According to an affidavit filed in support of the original criminal complaint, Yokum walked into the bank at approximately 2:45 p.m. and waited in line at a teller window. He leaned over the counter and whispered, “Give me all your hundreds.” The teller handed him six $100 bills and he ran out of the bank.
A relative of Yokum, who was working nearby, told agents that Yokum had been staying at his house temporarily, and that Yokum had told him earlier in the day that he was going to rob a bank.
Yokum was arrested the same day by a Missouri State Highway Patrol trooper who intercepted his vehicle on eastbound Interstate 70 near Columbia, Mo.
Under federal statutes, Yokum 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 Christina Y.Tabor. It was investigated by the FBI.Warrensburg 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 that a Warrensburg, Mo., man was indicted by a federal grand jury today for distributing, receiving and possessing child pornography.
Michael J. Craney, 48, of Warrensburg, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Craney distributed child pornography over the Internet between March 21 and 25, 2013. Craney is also charged with two counts of receiving child pornography over the Internet on May 26 and July 7, 2013, and one count of possessing child pornography on Sept. 24, 2013.
The federal indictment also contains a forfeiture allegation, which would require Craney to forfeit to the government any property used to commit the alleged offenses, including a desktop computer, a laptop computer, three hard drives and a thumb drive.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Warrensburg, 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."Rhode Island Man Indicted in KC Case for Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Rhode Island man was indicted by a federal grand jury today for his participation with a Kansas City, Mo., man in child sex trafficking and producing child pornography as part of a scheme that generated more than $200,000 over a three-year period.
Thomas O’Brien, 53, of Rhode Island, was charged with Michael Dye, 46, of Kansas City, Mo., in an eight-count superseding indictment returned by a federal grand jury in Kansas City. Today’s superseding indictment replaces the original indictment returned on July 16, 2013, and adds O’Brien as a defendant along with new charges.
The federal indictment charges O’Brien and Dye together in two separate counts of producing child pornography. O’Brien and Dye allegedly victimized two minors, identified as Child Victim #1 and Child Victim #2, to produce child pornography between June 15, 2005 and Aug. 18, 2008.
The indictment also charges O’Brien and Dye each with one count of the attempted sex trafficking of Child Victim #2 between June 15, 2005 and Aug. 4, 2007.
O’Brien is charged with one count of traveling across state lines (from Rhode Island to Missouri) with the intent to engage in illicit sexual activity with Child Victim #2 between July 29, 2007, and Aug. 4, 2007.
Dye is charged with two counts of selling child pornography related to each of the two child victims. Dye is also charged with one count of grooming Child Victim #1 to participate in illegal activity (the production of child pornography).
The court granted the government’s motion to detain Dye in federal custody without bail after his arrest on July 17, 2013. According to the government’s detention motion, Dye’s actions giving rise to these charges include his active and repeated sexual intercourse with the minor females, his production and sale of child pornography of the two minor females and violent threats against at least one minor female should she ever inform anyone else of these incidents.
Dye allegedly profited extensively from the serial sexual exploitation of at least two minor females. In the course of this investigation, the detention motion says, the government developed evidence that Dye used the minor females to produce child pornography for various customers. Dye allegedly exploited the two minor females to O’Brien, who – in exchange for multiple images and videos of child pornography and access to them for sexual favors – paid the two minor females a “weekly allowance” as well as gifts in the form of multiple vehicles, remodeling projects at Dye’s home, various appliances, and other cash payments in a total amount estimated up to $200,000 over a three-year period.
Under federal statutes, O’Brien and Dye each face a potential life imprisonment upon conviction of the sex trafficking counts, with a mandatory minimum sentence of 10 years on each count. Each of the two counts for the production of child pornography carries a mandatory minimum sentence of 15 years in federal prison without parole. The counts for the sale of child pornography and for grooming a minor each carry a mandatory minimum sentence of five years in federal prison without parole. Traveling across state lines for illicit sexual activity carries a maximum penalty of 30 years in federal prison without parole.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated principally by the FBI.
Additional assistance was provided by the following agencies: The Western Missouri Cyber Crimes Task Force, the Clay County, Mo., Sheriff’s Department, the Platte County, Mo., Sheriff’s Department, the Naval Criminal Investigative Service, the Newport, R.I., Police Department, the Rhode Island State Police, the Winnipeg, Manitoba Police Service in Canada, the Royal Canadian Mounted Police, the Crown’s Attorney’s Office in Canada and the Child Exploitation and Online Protection Centre in the United Kingdom.Overland Park Businessman Pleads Guilty to $1.8 Million Contraband Cigarette ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Overland Park, Mo., man pleaded guilty in federal court today to his role in a $1.8 million conspiracy to traffic in contraband cigarettes.
Randall H. McColley, 67, of Overland Park, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with conspiracy to traffic in contraband cigarettes.
McColley operates Creative Marketing Solutions LLC, a licensed Kansas tobacco wholesaler. McColley admitted that he and an unindicted co-conspirator (who is not identified in court documents) purchased contraband cigarettes from undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Between May 2011 and February 2012, ATF undercover agents sold 108,120 cartons of contraband cigarettes to McColley and the co-conspirator for $1,831,015. The cigarettes were either delivered from the ATF undercover warehouse in Kansas City, Mo., to McColley’s residence (and place of business), or were picked up by McColley. McColley transported the contraband cigarettes to the co-conspirator in El Dorado, Kan.
McColley and this co-conspirator filed false monthly cigarette transaction reports to the states of Missouri and Kansas from May 2011 through March 2012. At no point during the conspiracy was the Kansas or Missouri excise tax paid on the Marlboro cigarette transactions. The total state excise tax lost to the state of Missouri was approximately $91,902.
Federal, Kansas and Missouri law requires that tax stamps be affixed to cigarette packages – prior to their sale to retailers or consumers – reflecting that the required state taxes have been paid. Cigarette packages without the appropriate stamps are considered to be “unstamped” and a quantity in excess of 10,000 unstamped cigarettes is considered “contraband cigarettes.”
Kansas charges an excise tax of $7.90 per carton ($ 0.79 per pack). Missouri levies an excise tax of $0.17 on a pack of 20 cigarettes. There are also other county and municipal taxes levied in Missouri. Jackson County levies an excise tax of $0.05 on a pack of 20 cigarettes. The city of Kansas City levies an excise tax of $0.10 on a pack of 20 cigarettes. The combined tax on a pack of cigarettes would be $0.32 per pack in Kansas City, Jackson County.
Under federal statutes, McColley is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.Business Owner Indicted for $1.2 Million Tax FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of an Independence, Mo., business has been indicted by a federal grand jury for failing to report more than $1.2 million in business income on her income tax returns.
Peggy Hennon, 55, of Independence, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 10, 2013. That indictment was unsealed and made public today upon Hennon’s arrest and initial court appearance.
Hennon was the owner of Peggy’s Tow. The federal indictment alleges that Hennon under-reported the gross receipts from her business from 2007 to 2009 in order to significantly reduce her income tax liability by approximately $308,368.
Peggy’s Tow purchased vehicles as scrap and sold them to scrap yards in the Kansas City metro area. After the vehicles were sold to the scrap yard, Hennon either deposited the check into one of her checking accounts or cashed the check at a gas station or bank.
According to the indictment, Hennon reported only part of her gross receipts on her 2007, 2008, and 2009 individual income tax returns. Hennon allegedly cashed the majority of checks she received from the sale of scrap vehicles (25 percent of the checks in 2007, 68 percent in 2008 and 98 percent in 2009). Hennon allegedly failed to include approximately $1,232,363 from the cashed checks on her tax returns for the 2007, 2008, and 2009 tax years.
Hennon is charged with three counts of making false statements on income tax returns. Hennon is also charged with attempting to interfere with the administration of internal revenue laws.
According to the indictment, Hennon provided expense records to IRS agents on three separate occasions in 2012 and 2013. Hennon allegedly provided false expense records to the IRS agents that had been altered to reflect higher business costs than the expense records that were used by her accountant to calculate expenses on her tax returns for 2008 and 2009. The majority of the alterations, the indictment says, involve a price which contained a “1” that was changed to a “4.”
The increased expenses of approximately $414,725 for tax years 2008 and 2009 would have reduced the amount of taxes due and owing by Hennon in the amount of approximately $163,857.
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 Ketchmark. It was investigated by IRS-Criminal Investigation Missouri Dept. of Revenue and the Missouri State Highway Patrol.KC Company Pleads Guilty to Illegally Transporting Hazardous WasteRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., company pleaded guilty in federal court today to illegally transporting hazardous waste.
Z-Group, LLC, is a Kansas company registered to do business in Missouri. Company president Friedrich-Wilhelm Zschietzschmann represented the company in court today to plead guilty before U.S. District Judge Brian C. Wimes to illegally transporting hazardous waste.
Zschietzschmann was also the president and CEO of Z-International, Inc., which specialized in the labeling industry. Z-International used large quantities of ink and ink-related products in its business, making labels for numerous companies all over the world. Z-International was located at 110 East 16th Street, Kansas City, Mo. Z-Group was established in 2001 by Zschietzschmann to serve as owner of real estate where Z-International operated its business.
Z-International was closed by Zschietzschmann in July 2010. Any assets or fixtures remaining on the property after the business closed were sold or otherwise disposed of by a Z-International employee.
Between July 2010 and April 2012, the company authorized personnel to hire others to transport hazardous waste to a separate location. Z-International employees authorized the transportation of 23 containers of varying sizes that contained liquid hazardous waste to Studer Container Service, 520 Madison Ave., Kansas City, Mo. Studer did not have a permit to receive hazardous waste.
In April 2012, Environmental Protection Agency officials conducted a compliance inspection at Studer. During the inspection, EPA inspectors found several containers of what appeared to be hazardous materials.
On June 28, 2012, EPA began its sampling and clean-up operation. On Dec. 21, 2012, the EPA National Enforcement Investigations Center provided analytical results for 38 samples collected from the containers dumped at Studer. Five of the samples tested positive for ignitability and two of the samples tested positive for toxicity.
The EPA Superfund Program cleaned up the hazardous waste at Studer to eliminate possible adverse effects on human health and environment. The total EPA Superfund cost was $36,871.
Under the terms of today’s plea agreement, Z-Group must pay a $50,000 fine and $36,871 in restitution, for a total payment of $86,871. The company is also subject to up to five years of probation. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Environmental Protection Agency, Criminal Investigation Division.Syrian National Sentenced for Social Security FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Syrian national was sentenced in federal court today for Social Security fraud.
Mohamad Yasser Baiazid, 71, a naturalized U.S. citizen from Syria who resided in Kansas City, Mo., was sentenced by U.S. District Judge Howard F. Sachs to one year and one day in federal prison without parole. Baiazid must pay $34,429 in restitution.
On July 31, 2013, Baiazid pleaded guilty to theft of government money by receiving Social Security benefits that he was not entitled to receive. Baiazid admitted that he resided outside of the United States for several years while receiving Supplemental Security Income (SSI) benefits. Baiazid admitted that his actions caused the government to incur a fraud loss of $34,179, for which he must pay restitution. Baiazid also received a one-time $250 payment to which he was not entitled under the American Recovery and Reinvestment Act of 2009, for which he also must pay restitution.
Baiazid applied for SSI benefits on Nov. 29, 2007. Beneficiaries of SSI may not reside outside of the country for a full calendar month or for 30 consecutive days or more. Beneficiaries who reside outside of the United States for more than a full calendar month or for 30 consecutive days or more are no longer eligible to receive SSI benefits. Accordingly, SSI beneficiaries have a duty to notify the Social Security Administration if they leave the United States and are gone for a full calendar month or for 30 consecutive days or more.
Baiazid lived outside the United States on three separate occasions. On Jan. 25, 2008, he traveled to Syria and did not return to the United States until Oct. 21, 2009 – approximately one year and 10 months later. On Jan. 21, 2012, Baiazid traveled to Syria and remained outside the United States until Feb. 24, 2010 – more than one month. Baiazid again left the United States headed for Syria on May 23, 2010, and resided outside of the United States until May 2, 2013 – nearly three years.
Upon his return to the United States in 2013, Baiazid initially had a return ticket to Beirut, Lebanon, leaving Kansas City International Airport on July 7, 2013. After learning that he was a target of a criminal investigation, he amended his flight plans and attempted to leave the United States on May 21, 2013.
When Baiazid was interviewed by an employee of the Social Security Administration in January 2010, he falsely claimed to be living in Kansas City since 2007. In a March 2010 interview, Baiazid again falsely claimed he had not been outside the United States for a calendar month or 30 consecutive days since November 2007. Baiazid was interviewed again in May 2013 and falsely claimed that he had not traveled outside the United States (except for a one-week visit to France).
This case was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration, Office of Inspector General, Office of Investigations.