Western District of Missouri
Press releases recorded for this federal judicial district.
Jury Convicts Two Los Angeles Sheriff's Deputies of Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two deputies of the Los Angeles County, Calif., Sheriff’s Department were convicted in federal court today for their roles in an $11 million mortgage fraud scheme.
James Arthur Nash, Jr., 43, and Arman Nshanian, 37, both of Corona, Calif., were each found guilty of conspiracy to commit wire fraud. In addition to the criminal conspiracy, Nash was convicted of four counts of wire fraud and Nshanian was convicted of two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process.
Nash and Nshanian are among nine defendants who participated in a mortgage fraud scheme from early 2005 through Aug. 4, 2006. Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove, Mo. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 from the loan proceeds. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
Co-defendants Leann Raejeana Turner, 44, of Blue Springs, Bruce Q. Williams, 44, of Kansas City, Kan., Carole L. Colson, 71, of Lake Worth, Fla., Anthony E. Hicks, 41, of Little Rock, Ark., Mark P. Billey, 40, of Buena Park, Calif., Zelda Ann Jackson, 40, of Newbury Park, Calif., and Linda Joyce Henry Johnson, 65, all of Corona, Calif., have all pleaded guilty to their roles in the conspiracy.
Turner and Jackson were real estate agents. Williams and Hicks were mortgage loan officers. Colson was a real estate broker. Billey and Johnson each purchased properties and Jackson assisted her husband in the purchase of a property.
Conspirators submitted fraudulent mortgage loan applications to purchase residential properties at inflated prices. The purchases were structured in such a way that the buyers would receive $100,000 cash back from the loan proceeds. The buyers obtained mortgage loans in excess of the actual sales prices to be paid to the seller, in order to receive the difference between the actual sales price and the inflated loan amount.
Turner and Colson listed and arranged for the sale of the homes at inflated prices and solicited buyers. In order to obtain the loan proceeds without the lenders’ knowledge, the buyers created fictitious businesses that issued false invoices that claimed the businesses had provided work and services for which they were entitled to receive loan proceeds.
Nash fraudulently purchased two residential properties in Blue Springs, Mo. He received $100,000 from each property. Nshanian fraudulently purchased a residential property in Lee’s Summit, Mo., and received $100,000.
Under federal statutes, Nash and Nshanian are each subject to a sentence of up to five years in federal prison without parole for the conspiracy, and up to 20 years in prison on each count of wire fraud. 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 Linda Parker Marshall. It was investigated by the FBI and IRS-Criminal Investigation.Federal Agent Pleads Guilty to $800,000 Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a special agent for U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) pleaded guilty in federal court today to making false statements to FBI agents in regard to a more than $800,000 mortgage fraud scheme.
Jeffrey Morriss, 48, of Kansas City, Mo., pleaded guilty before U.S. District Judge Howard F. Sachs to the charge contained in a Feb. 5, 2013, federal indictment. Morriss was employed as a special agent for ICE HSI since 1997.
Morriss submitted four separate home loan applications for three houses between August 10, 2007, and March 6, 2012. Morriss admitted that he made at least 12 material misrepresentations and omissions to obtain $811,917 in home loans. Morriss failed to make full payments on these loans, resulting in three defaults and foreclosures.
Morriss admitted that, on each loan application, he omitted the full amount of his debt, and on other occasions he provided other inaccurate and false information, which improved his debt-to-income ratio and assisted him to qualify for the loans. Morriss did not disclose debt for property he purchased in Colorado, did not disclose monthly child support liability and did not disclose that his property in Pleasant Hill, Mo., had been foreclosed. On a $161,150 loan application for residential property in Kansas City, Morriss falsely inflated his monthly income by about $2,600.
Morriss lied to FBI agents during an interview about the loan applications that was held on Nov. 18, 2012.
Under the terms of today’s plea agreement if it is accepted by the court at his sentencing hearing, Morriss will be sentenced to three years of probation and pay $12,794 in restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI and HUD-Office of Inspector General.
Church Youth Leader Sentenced for Sexual Exploitation of ChildrenRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ava, Mo., man who volunteered as a church youth leader was sentenced in federal court today for enticing minors for illegal sexual activity.
Brent “Pete” Turley, 23, of Ava, was sentenced by U.S. District Judge Gary Fenner to 10 years in federal prison without parole.
On July 23, 2013, Turley pleaded guilty to using the Internet and a cell phone to attempt to entice a 14-year-old child victim to engage in illegal sexual activity. Turley, a youth leader at the church his victim attended, had been sending sexually explicit text messages. A law enforcement officer was using the child victim’s phone to investigate after the parents contacted authorities. Turley made arrangements with the undercover officer to meet the child victim at a local park, where he was arrested on March 19, 2012. Condoms were located in Turley’s pocket and a firearm was found in his truck.
Turley also pleaded guilty to a separate count of using the Internet and a cell phone to entice a second child victim to engage in illegal sexual activity. Turley admitted that he engaged in illicit sexual activity with a 15-year-old victim. Turley used Facebook text messages to arrange a meeting with the child victim at a softball field in Mansfield, Mo. During the meeting, which occurred in February 2012, the child victim performed oral sex upon Turley in his vehicle. The child victim was later interviewed at the Child Advocacy Center and confirmed Turley’s admission.
According to court documents, Turley also admitted to law enforcement officers that he took a third child victim, whom he believed to be as young as 12 years old (but who was actually 14 years old) to see the “Yogi Bear” movie at a theater in Mountain Grove, Mo., in late 2010 or early 2011. During the movie, Turley digitally penetrated the child’s vagina. The victim was later interviewed and confirmed the illicit sexual conduct.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Springfield Felon Sentenced to 13 Years for Second Child Porn OffenseRead 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 who has been convicted twice for possessing child pornography was sentenced in federal court today.
Lattrell Anthony Morris, 30, of Springfield, was sentenced by U.S. District Judge Gary A. Fenner to 13 years in federal prison without parole for possessing child pornography and for violating the terms of his supervised release (which was being served for an earlier conviction, also for possessing child pornography). Morris was sentenced to 10 years in prison for possessing child pornography and to five years in prison for violating his supervised release, with two years of that sentence to be served concurrently to his 10-year sentence, for a total of 13 years. Following his prison term, Morris will be on supervised release for the rest of his life.
Today’s sentence is more than double the length of his previous sentence for possessing child pornography. Morris was sentenced in 2007 to serve 70 months in federal prison for possessing child pornography, followed by a lifetime term of supervised release. Morris had been on supervised release for only a few months when he was caught downloading child pornography on his cell phone.
Morris received a cell phone in September 2012, approximately four months after being released from federal prison. Despite Morris’s supervised release restrictions against Internet services, Morris paid $50 a month for unlimited Internet access through his cell phone. Morris admitted that he used his cell phone daily to conduct Internet searches for child pornography. Law enforcement officers examined Morris’s cell phone and found more than 15 images of child pornography.
As a result, Morris’s supervised release was revoked and he was charged again with possessing child pornography. Morris pleaded guilty in the second case on May 21, 2013.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the FBI, the Springfield, Mo., Police Department and the U.S. Probation and Pretrial Services Office.
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."Gladstone Man Pleads Guilty to his Role in Computer Hacking, ID Theft SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the fifth and final defendant pleaded guilty in federal court today to his role in a $725,000 fraud scheme that involved hacking into business computer systems to steal the identity information of hundreds of their customers.
Vince Evola, 45, of Gladstone, Mo., pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan to conspiracy to commit mail fraud.
By pleading guilty today, Evola admitted that he participated in a computer hacking and identity theft scheme with his ex-wife, Kimberly Evola, 45, of Gladstone, his sisters, Carrie Evola, 46, of Gladstone and Rosemary Evola, 42, of Overland Park, Kan., and Sael Mustafa, 35, a citizen of Jordan who resided in Gladstone.
The three-year-long scheme, which began in 2006, was designed to obtain stolen credit and debit card numbers from hundreds of victims and use that information to make online purchases. Vince Evola acknowledged in today’s plea agreement that a loss between $30,000 and $70,000 can be attributed to his conduct.
All of Vince Evola’s co-defendants already have pleaded guilty and been sentenced. Mustafa, the leader of the scheme, was sentenced on July 8, 2011, to 10 years in federal prison without parole and ordered to pay restitution to his victims. Mustafa committed a substantial part of the fraud scheme outside the United States. Before moving to Gladstone, Mustafa used the wireless network at an Internet café in Jordan to hack into company Web sites, as well as to use the stolen identity information to access online credit card accounts and to conduct fraudulent transactions. He moved from Jordan to Gladstone in January 2009 and continued to operate the scheme until April 2009.
Court documents describe the computer hacking, identity theft and fraud scheme as follows:
Step One: The Computer Hack
Mustafa accessed the computer servers that hosted the Web sites of several businesses to access customer databases and download the customers= personal information. Mustafa exploited these businesses for presumably less secure information, such as e-mail addresses, Web site passwords and security questions. This information was usually provided to the business by a customer registering on the Web site for online services such as a company newsletter, making a reservation, buying a gift card, or receiving e-mail coupons.
Step Two: Accessing Credit Card Accounts
Mustafa and his co-conspirators then tried to use this stolen customer information at major credit card Web sites. Mustafa counted on the likelihood that many identity theft victims used the same password for the hacked accounts that they used for their online credit card accounts. Mustafa visited various credit card Web sites and, by trial and error, tested the stolen identity information to see if it matched the login and password information for their credit card account. If a victim had an account at a particular credit card Web site, and if the victim used the same login and password information, Mustafa was able to access their accounts.
Step Three: Using the Victims’ Accounts
After gaining access to victims' credit card accounts, conspirators purchased more than $240,000 worth of airline tickets (both domestic and international) and more than $30,000 in gift cards online. They also sent, or attempted to send, more than $344,000 in wire transfers and conducted more than $106,000 in other fraudulent online transactions (such as a subscription to the Al-Jazeera Channel). They purchased gift cards or made purchases online from businesses such as Hy-Vee, Nebraska Furniture Mart, AMC Theaters, Bass Pro Shop, Hallmark, Liz Claiborne, Lowes, Red Lobster, Olive Garden, PF Chang’s, and Zales, among others. They directed the products to be mailed to their residences.
Under federal statutes, Evola 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 Matthew P. Wolesky. It was investigated by the U.S. Postal Inspection Service and the Gladstone, Mo., Police Department.Carthage Apartment Manager Sentenced for Fraud, Money Laundering, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carthage, Mo., apartment manager was sentenced in federal court today for a nearly $400,000 fraud scheme involving several apartment complexes.
Barbara J. Evans, 55, of Carthage, was sentenced by U.S. District Judge Gary A. Fenner to three years and five months in federal prison without parole. The court also ordered Evans to pay approximately $206,000 in restitution.
Evans was employed as a property manager for Preservation Housing Management (PHM), which is based in Boston, Mass., and owned the Deerfield Village, Highland Acres, Highland Meadows and Maplewood Manor apartment complexes in Carthage. PHM oversees these properties through its office in Kansas City, Mo.
On Oct. 3, 2012, Evans pleaded guilty to one count of wire fraud, one count of money laundering and one count of filing a false tax return.
Stolen Rent Scheme at Deerfield Village
When a low-income tenant rented an apartment at Deerfield Village and qualified for Section 8 rental assistance/subsidies, Evans generally calculated the move-in rent amounts correctly. However, when tenants reported an increased income, instead of reflecting the increased rent in the computer system, she delayed reporting the increased rent to PHM. As a result, tenants would pay the correct, higher rent amount to Evans, but Evans continued to provide the lower rent payments to PHM. Evans pocketed the difference between the higher rent payments she received from tenants and the lower amounts she passed on to PHM.
From 2003 through 2011, Evans fraudulently received net proceeds of approximately $206,069 from this scheme.
Construction Fraud Scheme
In May 2006, PHM discovered that Meeco Construction, a contractor hired by Evans to perform work on Deerfield Village and Maplewood Manor, was owned by her husband, Mike Evans. Meeco Construction had been performing work on the properties since October 2003. PHM's former president verbally reprimanded Evans and she was instructed to immediately discontinue using vendors related to PHM employees.
In September 2006, Evans, with the help of her daughter, Addison Kinney, created A.J. Construction. Evans created and submitted all A.J. Construction bids and invoices to PHM. PHM policy required two or three competing bids on any construction project over $5,000. Evans, through her capacity as manager, falsified and submitted fictitious competing bids and insurance documents to ensure A.J. Construction would get all of the construction contracts at the HUD subsidized properties she managed. From Sept. 28, 2006, to June 15, 2009, A.J. Construction received $191,922 for work completed at Deerfield Village, Highland Meadows, Highland Acres, and Maplewood Manor. A.J. Construction performed work only for PHM Properties.
Money Laundering
Evans knowingly concealed the proceeds of this wire fraud when she purchased and remitted money orders in the tenants' names. Evans admitted that she cashed or deposited tenants’ rent payments into her own bank account, then used those funds to purchase money orders for lesser amounts. Evans forged tenants’ signatures on the money orders and falsely represented those money orders to be their rent payments.
Tax Fraud
Evans admitted that she filed false federal income tax returns for the years 2006, 2007, 2008, 2009, and 2010 by failing to report $171,790 on her Form 1040, U.S. Individual Income Tax Returns, resulting in a total tax loss to the federal government of $28,737.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the HUD Office of Inspector General, the Missouri State Highway Patrol, IRS-Criminal Investigation and the Carthage, Mo., Police Department.Former Administrator Pleads Guilty to Embezzling from Jackson County CourtRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former court administrator for the Jackson County Circuit Court pleaded guilty in federal court today to a fraud scheme in which the government contends she embezzled nearly $140,000 from the circuit court.
Teresa L. York, 58, of Blue Springs, waived her right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges her with mail fraud.
York was appointed as the court administrator for the Jackson County Circuit Court in 2003 and resigned on July 2, 2012, after her embezzlement was discovered.
York admitted that she engaged in a scheme to defraud the court between January 2009 and June 4, 2012, when she was placed on administrative leave. York used court-paid credit cards for her own personal use and purchased gift cards paid for by the court for her own personal use. According to the federal charging document, York also entered into a fraudulent contract for which no services were ever provided and which primarily benefited a person with whom she had a personal relationship. (York does not admit that conduct in today’s plea agreement, but the government reserves the right to present evidence of the contract fraud at her sentencing hearing.)
As a result of York’s fraudulent actions, the government contends the total loss to the court was $139,536, while the intended loss was $142,278. Under the terms of today’s plea agreement, York must pay a $77,778 money judgment to the government in forfeiture, which represents her proceeds from the fraud scheme.
Credit Card Scheme
The Jackson County Circuit Court used credit cards to pay for court business, such as judicial travel and Missouri Bar expenses. These credit cards were collectively referred to as purchasing cards, or “P-cards.” As court administrator, York was an authorized user of the P-cards.
York admitted that, from 2009 to 2012, she used the court’s P-card to purchase:
- $2,252 for gas for her personal driving, even though the court used mileage reimbursement forms to reimburse business driving;
- $9,532 for personal items and gift cards from Amazon;
- $6,446 for personal items such as clothing and make-up;
- $8,350 for personal meals;
- $487 for U.S. postal stamps for her personal use (the court uses metered postage for its mail, rather than stamps);
- $46,535 for Apple computer products (the court did not use a system compatible with Apple computers);
- $35,356 for gift cards. (York kept most of the gift cards, in the amount of $29,371, for her personal use and distributed $5,985 of these gift cards to court staff, on a merit system determined by her, as a type of bonus. The amounts of the cards were more than the Internal Revenue Service de minimis requirements for income reporting, however, the cards were not ever tracked or reported as income.)
York also sold some computers owned by the court and kept the proceeds of the sales for her personal use.
From January 2009 to June 4, 2012, York reimbursed the Court a total of $1,660 for her personal expenditures. On June 7, 2012, after being confronted with her embezzlement scheme and placed on leave, York reimbursed the Court an additional $2,742.
York admitted that the approximate intended loss to the court from her personal use of the court’s credit cards is $77,778, while the actual loss to the court from that part of her scheme is $75,036.
Contract Scheme
Today’s information also alleges that York engaged in a fraudulent contract scheme. On Sept. 30, 2010, York entered into a contract with CBDM Services, LLC, on behalf of the court, purportedly for workflow analysis (a business process review, a customer service evaluation and an organizational redesign). The amount to be paid was originally $68,000, although it was later increased to $69,500.
CBDM, which was not organized as a company at the time the contract was signed, was actually a front for the true contracting party, identified in court documents as “B.V.” York did not disclose to the court that B.V. would be receiving more than 90 percent of the payments made to CBDM or that she had a personal relationship with B.V.
At York’s direction, the court paid CBDM a total of $64,500, although no usable work product or report was produced. Of the $64,500 paid by the court, the owner and only principal of CBDM (identified in court documents as “N.D.”) kept approximately $2,000 plus banking fees and sent the remainder, approximately $62,000, to B.V.
Under federal statutes, York 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 Kathleen D. Mahoney. It was investigated by the FBI.
Treasurer for Road District, Fire District Pleads Guilty to Embezzling $1.5 MillionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former treasurer of both the Wellington Napoleon Fire Protection District and Special Road District pleaded guilty in federal court today to a fraud scheme in which he embezzled more than $1.5 million from the two districts.
Leland Ray Kolkmeyer, 58, of Wellington, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to a federal information that charges him with two counts of mail fraud.
Kolkmeyer was appointed as treasurer of the road district in 1996. Kolkmeyer was first elected treasurer of the fire district in 1997. He resigned from both positions on Feb. 25, 2013. The offices of both the fire district and the road district are located in Wellington.
Road District Fraud Scheme
Kolkmeyer admitted that he stole approximately $900,000 from the road district from August 1998 to Feb. 12, 2013. Kolkmeyer made checks payable from the road district’s bank account to himself and others for his own benefit without the knowledge, authorization or consent of the road district. The government alleges that Kolkmeyer fraudulently transferred $939,485 from the road district’s bank account to his own bank account or to pay bills on his behalf.
Kolkmeyer, in his position as treasurer of the road district, made false statements and material omissions to the Special Road District Board concerning the checks that were made payable to himself and to others on his behalf.
Fire District Fraud Scheme
Kolkmeyer also admitted that he stole more than $500,000 from the fire district from August 1998 to Feb. 17, 2013. The government alleges that Kolkmeyer fraudulently transferred $590,674 from the fire district bank accounts to his own bank account or to pay bills on his behalf.
Kolkmeyer, in his position as treasurer of the fire district, made false statements and material omissions to the Fire Protection District Board concerning the checks that were made payable to himself and to others on his behalf.
The federal information requires Kolkmeyer to forfeit to the government $1,530,159, which represents the total amount he embezzled from the two districts.
Under federal statutes, Kolkmeyer is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Springfield Man Sentenced for Armed RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a homeless Springfield, Mo., man was sentenced in federal court today for the armed robbery of Great Southern Bank.
Dale C. Barkfelt, 35, of Springfield, was sentenced by U.S. District Judge Greg Kays to nine years and seven months in federal prison without parole.
On May 8, 2013, Barkfelt pleaded guilty to using a handgun to rob Great Southern Bank, 1615 W. Sunshine St., Springfield.
According to court documents, Barkfelt entered the bank at approximately 2 p.m. on April 9, 2012, and placed a white plastic grocery bag on a teller counter. Barkfelt pointed a semi-automatic handgun at the teller and told her to “Put it in there.” The teller handed Barkfelt $966 and he left the bank.
Approximately three hours after the robbery, a Springfield police officer recognized Barkfelt in a bank surveillance photo. The officer was familiar with Barkfelt from previous police-related contacts and had been in contact with Barkfelt within the previous week. Barkfelt, who is homeless, was staying at an outdoor camp site near Kansas Expressway and West Sunshine Street, which is in the vicinity of the bank. Barkfelt was arrested the following day.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver and Assistant U.S. Attorney Abram McGull II. It was investigated by the FBI and the Springfield, Mo., Police Department.Former Business Manager Embezzles at least $130,000 from Brookside Physician's OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former business manager for a Brookside physician’s office pleaded guilty in federal court today to a fraud scheme in which she embezzled at least $130,000 from her employer.
Eileen Kisner, also known as “Anne,” 56, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to mail fraud.
Kisner was the business manager at Brookside Family Medicine from 2002 to 2010. During that time, she used her employer’s credit cards for her personal use and benefit when she was not authorized to do so. The balances on the credit cards were paid by funds from the company’s bank account. Kisner pleaded guilty today to a mail fraud count that charges her with mailing a $224 check from the company’s account to pay for her personal car insurance on a family car, a Sierra. Kisner was not authorized to pay funds from Brookside’s bank account for the car insurance.
Kisner admitted today that she stole between $130,000 and $182,032 from Brookside Family Medicine by incurring unauthorized expenses during her employment, and those expenses were paid with funds from Brookside’s accounts. The court will determine the applicability of a specific loss amount within that range at Kisner’s sentencing hearing.
Under federal statutes, Kisner 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 Jane Pansing Brown. It was investigated by the FBI.
Carl Junction Man Sentenced to 25 Years in Prison for Internet Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
James Lee Hagerman, 51, of Carl Junction, was sentenced by U.S. District Judge Greg Kays to 25 years in federal prison without parole. The court also sentenced Hagerman to 20 years of supervised release following his prison term.
On Feb. 7, 2013, Hagerman pleaded guilty to two counts of receiving child pornography.
An officer with the Southwest Missouri Cybercrimes Task Force was conducting an online investigation into the sharing of child pornography on April 24, 2012, when he identified Hagerman’s computer as sharing over 100 files of child pornography through a peer-to-peer file-sharing program. The officer downloaded three of the files and determined that they contained depictions of children as young as two to four years of age engaged in sexually explicit conduct.
Law enforcement officers executed a search warrant at Hagerman’s apartment and seized his computer. Hagerman told officers that he had approximately 1,000 child pornography videos stored on his computer.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Birch Tree Man Sentenced to 25 Years for Illegal Firearm, MethRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Birch Tree, Mo., man has been sentenced in federal court for illegally possessing a firearm and for possessing methamphetamine with the intent to distribute.
Raymond Doyle Smotherman, 48, of Birch Tree, was sentenced by U.S. District Judge Greg Kays on Tuesday, Nov. 19, 2013, to 25 years in federal prison without parole.
On July 3, 2013, Smotherman pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime and to possessing 50 grams or more of methamphetamine with the intent to distribute.
A Missouri State Highway Patrol trooper conducted a traffic stop of Smotherman’s vehicle on Dec. 30, 2011. The trooper noticed a rifle concealed in Smotherman’s vehicle on a shelf above the sun visors. The trooper searched Smotherman’s vehicle; in addition to the loaded Remington .270-caliber rifle on the shelf above the sun visor, he found a loaded Remington .22-caliber rifle, a loaded Ruger .22-caliber pistol, various rounds of ammunition and a bag that contained methamphetamine. In total, troopers discovered 17.04 grams of methamphetamine in the vehicle.
On March 12, 2012, law enforcement officers received information from a confidential source that Smotherman and another person were traveling to Kansas City to purchase methamphetamine. The next day, a state trooper spotted the vehicle Smotherman was driving on U.S. Highway 60 and conducted a traffic stop. Troopers located a WD-40 can under the front passenger seat. Inside the can were plastic baggies that contained methamphetamine. Another bag of methamphetamine was found in the battery compartment of a Dewalt cordless drill and caulking tube. In total, troopers discovered 110.03 grams of methamphetamine in the vehicle.
This case was prosecuted by Special Assistant U.S. Attorney Ami Harshad Patel Miller and Assistant U.S. Attorney Cynthia J. Hyde. It was investigated by the Missouri State Highway Patrol, the South Central Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Gladstone Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Gladstone, Mo., man has been indicted by a federal grand jury for producing, distributing and possessing child pornography.
Barry Alan Darlington, 73, of Gladstone, was charged in a five-count indictment returned under seal by a federal grand jury on Thursday, Nov. 14, 2013. That indictment was unsealed and made public upon Darlington’s arrest and initial court appearance on Friday, Nov. 15, 2013. Darlington remains in federal custody pending a detention hearing on Nov. 20, 2013.
Darlington is charged with three counts of producing child pornography over a three-year period. The federal indictment alleges that Darlington used a minor, identified as “Jane Doe,” to produce child pornography between June 1, 2001, and May 1, 2004.
The indictment also alleges that Darlington distributed child pornography over the Internet in September 2005 and that he was in possession of child pornography on July 18, 2013.
In seeking to have Darlington detained without bail, the government contends that he has indicated a continuing sexual interest in other children and has destroyed evidence.
According to the government’s detention motion, Darlington furthered the exploitation of his child victim by distributing some of the images he produced over the Internet. Investigators also found in Darlington’s possession multiple additional images and movies of the sexual abuse of other children, including babies. Online chat logs indicate that Darlington distributed other, “commercial” (that is, not self-produced) child pornography to others over the Internet.
The detention motion also cites online chats in which Darlington admitted he had been ogling a young neighbor girl and tried to arrange for her to spend the night at his house. Darlington says in those chats that he loves to go to malls and look at “young folks,” and that he “checks out the kids” when he’s at the grocery store.
The government will produce evidence that Darlington destroyed a computer hard drive after being confronted by law enforcement with evidence that he possessed child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Gladstone, Mo., Police Department and the Western Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Director Indicted for Stealing $385,000 from Home for Disabled PersonsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the director of a program that provided a home for disabled persons in Higginsville, Mo., has been indicted by a federal grand jury for embezzling more than $385,000 from the organization.
Terri Arlene Marr, 50, of Warrensburg, was charged in a 22-count indictment returned by a federal grand jury in Kansas City, Mo., on Friday, Nov. 15, 2013.
Marr was the director of the Progressive Alternative Living, Inc. (PAL) from 1991 through 2013. PAL is an organization that operates a home in Higginsville for disabled persons in need of assistance. PAL receives reimbursement for many of these individuals from Medicaid. Marr was responsible for keeping strict and accurate accounts of all money received by and disbursed for and on behalf of PAL.
The indictment alleges that Marr made payments on her personal credit cards out of the PAL bank account and issued payroll checks to an unindicted co-conspirator (who is not identified in the indictment) who had not performed any work or services for PAL. These payroll checks total approximately $175,400 from 2001 through 2013. PAL also paid approximately $10,600 in taxes (Social Security, Medicare, Missouri unemployment, and Federal unemployment) on behalf of the unindicted co-conspirator.
The federal indictment charges Marr with 16 counts of stealing from a health care benefit program by issuing checks for personal expenses to which she was not entitled from Progressive Alternative Living. Marr is also charged with six counts of stealing from a health care benefit program by issuing payroll checks to the unindicted co-conspirator from Progressive Alternative Living.
The indictment also contains a forfeiture allegation, which would require Marr to forfeit to the government any property derived from the proceeds of the offenses, including a money judgment of $385,218, which represents the proceeds of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the Higginsville, Mo., Police Department.Liberty Man Indicted for Meth Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was indicted by a federal grand jury today on charges related to methamphetamine trafficking and illegally possessing firearms.
Alan Glenn Hampton, 42, of Liberty, was charged in a 10-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Hampton participated in a conspiracy to distribute methamphetamine from Feb. 18, 2011, to March 1, 2012. Hampton is also charged with six counts of distributing methamphetamine and one count of possessing methamphetamine with the intent to distribute.
The indictment also charges Hampton with two counts of being a felon in possession of a firearm. According to the indictment, Hampton, who has a prior felony conviction, was in possession of a Jimenez Arms 9mm pistol on Nov. 22, 2011, and a Ruger .380-caliber semi-automatic handgun on Dec. 1, 2011.
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 Jackson County Drug Task Force, the Independence, Mo., Police Department, the Holt County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.Two KC Men Indicted for Illegal Firearms Following Fatal CollisionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., men have been indicted by a federal grand jury for illegally possessing firearms following a high-speed car chase that ended with a collision that killed an employee of the Kansas City Police Crime Laboratory.
Larneal D. Davis, 28, and Christopher L. Murray, 25, both of Kansas City, were charged with being felons in possession of firearms in an indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Nov. 12, 2013. That indictment was unsealed and made public today upon Murray’s arrest and initial court appearance.
The federal indictment alleges that Davis and Murray, who have each been convicted of a felony, were in possession of a Taurus .40-caliber semi-automatic pistol and a Ruger .380-caliber semi-automatic pistol on July 6, 2013. Davis was arrested on that day following a high-speed car chase that resulted in a fatal collision with another vehicle and is in state custody.
Michael Chou, a crime scene technician at the Kansas City Police Crime Laboratory, was killed when his vehicle was broadsided by a vehicle that was fleeing from Kansas City police officers. Davis was arrested a short distance from the accident scene after a brief pursuit on foot. Officers found the two pistols inside the wrecked vehicle. Murray was arrested today.
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 D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.Operation Coin CollectorRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 37 defendants – including 23 Sedalia, Mo., residents and eight Johnson County, Mo., residents – have been indicted in six separate but related cases for their roles in drug-trafficking conspiracies that distributed more than $1 million worth of cocaine and crack cocaine, as well as illegally possessing firearms.
Operation Coin Collector was a two-year investigation launched by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in partnership with the ATF-led JOLT (Joint Operations Law Enforcement Team) Task Force, comprised of the Sedalia, Warrensburg and Warsaw police departments and the Pettis County, Hickory County, Henry County, Johnson County and Benton County sheriff’s departments. The investigation focused on significant violent crime and drug-trafficking activity in the Sedalia area. As a result of the federal investigation, three indictments were returned under seal by a federal grand jury on Oct. 16, 2013. Three more indictments were returned under seal by a federal grand jury on Nov. 12, 2013.
ATF agents, members of the JOLT Task Force, the U.S. Marshal’s Service, police officers from Knob Knoster, Independence, Columbia, and Kansas City, Mo., the Boone County Sheriff’s Department, the Missouri State Highway Patrol and U.S. Customs and Border Protection Airwing participated in a law enforcement sweep that began early this morning and resulted in 28 arrests and the execution of five search warrants in Sedalia. Five defendants are already in custody for unrelated cases and four defendants are fugitives. All six of the sealed indictments were unsealed and made public today upon the arrests and initial court appearances of a number of defendants. Four defendants are already in custody in separate and unrelated cases.
USA v. Staten, et al
William M. Staten, also known as “Bugs,” 39, Sarandon A. Staten, also known as “Ran,” 19, Robert D. Ballance, also known as “Bass,” 30, Gordon E. Hawkins, also known as “Fresh,” 24, Ronald W. Spencer, 68, and Katherine A. Mazari, 50, all of Sedalia, and Ansley E. Sims, 29, of Columbia, Mo., were charged in a 14-count indictment returned by a federal grand jury in Kansas City on Tuesday, Nov. 12, 2013.
The federal indictment alleges that each of the defendants participated in a conspiracy to distribute five kilograms or more of cocaine and/or 280 grams or more of crack cocaine from Oct. 5, 2011, to Nov. 4, 2013.
In addition to the conspiracy, Ballance and Sarandon Staten are charged together in one count of aiding and abetting each other to distribute crack cocaine. Ballance is also charged with two counts of distributing crack cocaine. William Staten is also charged with one count of possessing cocaine with the intent to distribute.
Ballance, Hawkins, Mazari, Sims, Spencer and Sarandon Staten are each also charged with one count of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine. William Staten is also charged with two counts of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine.
The indictment also contains a forfeiture allegation, which would require each of the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses or used to commit the alleged offenses, including a money judgment of $1 million, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Wilson, et al
Brian K. Wilson, also known as “Brazy,” 39, Jeffrey A. Kinner, also known as “P-Nut,” 31, D’Shaun L. Johnson, 19, Devan L. Plakorus, 19, and Janice M. Williams, 41, all of Knob Knoster, Mo.; John B. Thomas-Flowers, also known as “J.B.,” 30, and Rashawn D. Cason, 26, both of Blue Springs, Mo.; Jordan L. Wade, also known as “Cali,” 23, Jason L. Jackson, 29, and Connie Sue Kendrick, 46, all of Warrensburg, Mo.; Walter J. Staten, Jr., also known as “Walt Jack,”22, Micah J. Clark, also known as “Dukes,” 32, and Samuel I. Gravitt, 21, all of Sedalia, Mo.; Jeremy D. Peters, also known as “Pun,” 24, of Columbia, Mo.; Kelly L. Buckner, Jr., 22, of Harrisburg, Mo.; and Jacob M. Goans, 20, of Raytown, Mo., were charged in a 27-count indictment returned by a federal grand jury in Kansas City on Tuesday, Nov. 12, 2013.
The federal indictment alleges that 14 of the defendants (with the exception of Gravitt and Goans) participated in a conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine from Oct. 5, 2011, to June 20, 2013.
In addition to the conspiracy, Wilson and Jackson are charged together in one count of aiding and abetting each other to distribute crack cocaine.
Wilson is also charged with being a felon in possession of firearms. The indictment alleges that Wilson, who has a prior felony conviction, was in possession of eight rifles and two shotguns. Wilson is also charged with possessing 10 stolen firearms.
Wade and Gravitt are each charged with one count of possessing stolen firearms. The indictment alleges that Wade and Gravitt were in possession of a stolen Savage 7mm rifle and a stolen Marlin 30-30 caliber rifle. Gravitt and Wade are each also charged with one count of being a felon in possession of firearms.
Goans is charged with one count of possessing stolen firearms. The indictment alleges that Goans was in possession of 11 stolen firearms, including eight shotguns, one rifle, a Mossberg .410-gauge weapon made from a shotgun and a Baikal 12-gauge/.22-caliber combination gun. Goans is also charged with one count of possessing a sawed-off shotgun.
Wilson is also charged with six counts of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine. Wade, Clark, Staten, Johnson, Williams, Peters, Jackson, Plakorus, Kendrick, Kinner and Thomas-Flowers are each also charged with one count of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine.
The indictment also contains a forfeiture allegation, which would require each of the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses or used to commit the alleged offenses, including a money judgment of $1 million, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Buckner
Eual T. Buckner, also known as “Big Tommy,” 56, of Sedalia, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City on Tuesday, Nov. 12, 2013.
The federal indictment alleges that Buckner, who has a prior felony conviction, was in possession of a Remington 16-gauge pump-action shotgun.
USA v. Kendrick, et al
Kenneth C. Kendrick, also known as “Kavi,” 40, his father, Lee A. Kendrick, 65, Eric T. Hawkins, also known as “Easy,” 33, Kardell E. Sims, also known as “FU,” 35, George E. Buckner, also known as “Jorge,” 50, Ronald C. Boggs, also known as “Hobbs,” 47, Marvin D. Spruell, 56, and his wife, Vickey J. Spruell, 56, all of Sedalia, were charged in a 12-count indictment returned by a federal grand jury on Oct. 16, 2013.
The federal indictment alleges that each of the defendants participated in conspiracy to distribute five kilograms or more of cocaine and/or 280 grams or more of crack cocaine from Oct. 5, 2011, to July 2, 2013.
In addition to the conspiracy, Kenneth Kendrick is charged with five counts of distributing crack cocaine and one count of distributing cocaine. Hawkins is also charged with two counts of distributing crack cocaine. Buckner and Boggs are each also charged with one count of aiding and abetting others to distribute crack cocaine. Kenneth Kendrick, Hawkins and Boggs are also charged together in one count of possessing cocaine with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require all of the defendants to forfeit to the government any property obtained from the alleged violations, including a money judgment of $500,000, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Poindexter, et al
Gordell E. Poindexter, also known as “Fat Man,” 23, Art W. Williams, also known as “Ace,” 25, Demetrius N. Gray, also known as “Meechi,” 29, and Antonio T. Gray, also known as “T,” 29, all of Sedalia, were charged in a 19-count indictment returned by a federal grand jury in Kansas City on Oct. 16, 2013.
The federal indictment alleges that each of the defendants participated in a conspiracy to distribute five kilograms or more of cocaine and/or 280 grams or more of crack cocaine from Oct. 5, 2011, to June 20, 2013.
In addition to the conspiracy, Poindexter is charged with seven counts of distributing crack cocaine and two counts of being a felon in possession of a firearm. The indictment alleges that Poindexter, who has a prior felony conviction, was in possession of a Rohm .22-caliber revolver and a Smith & Wesson .44-caliber revolver.
Demetrius Gray is also charged with three counts of distributing crack cocaine and one count of being a felon in possession of a firearm. The indictment alleges that Demetrius Gray, who has a prior felony conviction, was in possession of a Maadi Model Helwan 9mm pistol.
Williams is also charged with two counts of distributing crack cocaine. Antonio Gray is also charged with one count of distributing crack cocaine.
Williams, Demetrius Gray and Antonio Gray are also charged together in one count aiding and abetting each other to distribute crack cocaine. Williams and Antonio Gray are also charged together in one count of aiding and abetting each other to distribute crack cocaine.
The indictment also contains a forfeiture allegation, which would require each of the defendants to forfeit to the government any property obtained from the proceeds of the alleged violations, including a money judgment of $500,000, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Staten
Marquoi D. Staten, also known as “Scratch,” 21, of Sedalia, was charged in a five-count indictment returned by a federal grand jury in Kansas City on Oct. 16, 2013.
The federal indictment alleges that Staten participated in a conspiracy to distribute 28 grams or more of crack cocaine from Oct. 5, 2011, to June 5, 2012. In addition to the conspiracy, Staten is charged with four counts of distributing crack cocaine.
The federal indictment also contains a forfeiture allegation, which would require Staten to forfeit to the government any property obtained from the proceeds of the alleged violations or used to commit the alleged violations, including $2,248 that was seized by Sedalia police officers.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Special Assistant U.S. Attorney Sydney Sanders. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the ATF-led JOLT Task Force and the Pettis County, Mo., Prosecutor’s Office.Kansas Man Charged in $3 Million Scheme to Sell Foreign Versions of BotoxRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hesston, Kan., man has been indicted by a federal grand jury alongside an Alton, Ill., business owner and his company who were charged earlier this year for distributing more than $3 million worth of foreign Botox and Juvederm in the United States.
Christopher Tozier, 43, of Hesston, was charged in a superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces an April 3, 2013, indictment that charged Christopher Carstens, 48, of Alton, and his company, Orthopaedic Solutions, Inc., with violations of the Federal Food, Drug and Cosmetic Act.
The federal indictment alleges that Carstens and Orthopaedic Solutions distributed approximately 5,879 units of a foreign version of the prescription drug Botox and a foreign version of the prescription device Juvederm through their sales representatives to doctors or other health care professionals in the United States between 2008 and 2011, at a retail value of approximately $3,058,183.
Juvederm is a clear, biodegradable gel implant that is injected into the skin to correct wrinkles and folds.
Today’s superseding indictment charges Carstens, Orthopaedic Solutions and Tozier together in two counts of smuggling goods into the United States. They allegedly imported foreign Botox into the United States contrary to the prohibition against introducing drugs that were misbranded (because the foreign Botox labeling failed to bear the statement “Rx only”). They allegedly imported Juvederm 3 into the United States contrary to the prohibition against introducing devices that were adulterated (because the foreign versions of Juvederm 3 lacked FDA approval for distribution in the United States).
Tozier is also charged in today’s superseding indictment with one count of smuggling foreign Botox into the United States, two counts of distributing a misbranded drug (foreign Botox) across state lines and one count of distributing an adulterated device (Juvederm 3) across state lines.
Today’s superseding indictment contains several charges that were part of the original indictment. Carstens and Orthopaedic Solutions are charged with one count of mail fraud because they allegedly executed their scheme by distributing foreign Botox (which the FDA had not approved for distribution in the United States) via FedEx and attempted to hide their fraudulent scheme from doctors and health care professionals. Carstens and Orthopaedic Solutions are charged with one count of distributing an unapproved new drug across state lines because they had not received approval to import or distribute the foreign version of Botox in the United States. Carstens and Orthopaedic Solutions are charged with one count of distributing a misbranded drug across state lines. Carstens and Orthopaedic Solutions are charged with three counts of distributing an adulterated device across state lines. Carstens and Orthopaedic Solutions are charged with three counts of distributing a misbranded device across state lines because the Juvederm 3 labeling failed to bear adequate directions for use or appropriate warnings.
The indictment also contains a forfeiture count, which would require Carstens and Orthopaedic Solutions to forfeit to the government any property derived from the proceeds of the scheme, including a money judgment of $3,058,183 for all three defendants and an additional $26,125 from Tozier.
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 Jane Pansing Brown and Lucinda S. Woolery. It was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigation.KC Man Sentenced to 31 Years in Prison for Attempted Armed Bank Robbery After Shoot-out with Bank Guard, Federal AgentRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to rob Blue Ridge Bank and Trust at gunpoint, after being foiled by a bank guard and a federal agent who was a customer at the bank.
Eric L. Smith, 34, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 31 years and 10 months in federal prison without parole.
Smith was found guilty at trial of attempted armed bank robbery, using a firearm during a violent crime and being a felon in possession of a firearm on Aug. 14, 2013.
Smith attempted to rob Blue Ridge Bank and Trust, 6202 Raytown Trafficway, Raytown, Mo., on June 23, 2012. Smith entered the bank and pointed a firearm at a security guard who was seated in the lobby. Smith walked straight to the guard, still pointing the firearm at him, and demanded that the guard give him his weapon. Smith fled from the bank without taking any money when the guard fired three rounds from his 9mm Glock handgun in Smith’s direction. A bullet fired from the guard’s gun shattered the glass in one of the doors through which Smith exited the bank.
The only customer in the bank, a federal agent who was dressed in plain clothes, drew his weapon, pointed it at Smith and pursued Smith out of the bank along with the guard. Smith stopped in the parking lot and turned and fired one shot toward the bank, guard and federal agent. Smith continued running through the parking lot and around the western corner of the strip mall. Smith ran to a red four-door sedan he had parked behind the mall and sped away.
An anonymous tipster saw a surveillance photo of Smith and called the Crime Stoppers TIP Hotline on June 26, 2012. The caller reported that Smith had a bandaged right hand since Saturday but no hand injury on Friday night. The tip led law enforcement officers to the home of Smith’s mother, where he was staying. Smith was at home and was arrested on outstanding warrants.
When agents searched the house, they found a loaded .40-caliber Ruger under a cushion of the couch. The Ruger matched the firearm used by Smith in the attempted bank robbery. The brand of ammunition found in the firearm matched the live round and the shell casing found in the parking lot of Blue Ridge Bank and Trust. Additionally, a forensic expert determined that the .40-caliber shell casing recovered from the parking lot was fired from the Ruger found under the couch cushion. The Ruger contained live rounds of ammunition that matched the shell casing and bullet recovered from the crime scene. Law enforcement officers also identified a Ford four-door sedan parked at the residence that matches the vehicle in which the robber fled.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has two prior felony convictions for aggravated robbery.
This case was prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Sentenced to 10 Years for Distributing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for distributing child pornography over the Internet.
Joseph Frank Sliepka IV, 31, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, Nov. 12, 2013, to 10 years in federal prison without parole followed by 20 years of supervised release.
On May 21, 2013, Sliepka pleaded guilty to distributing child pornography over the Internet. Sliepka admitted that he sent an email to an undercover federal agent in which he expressed a desire to trade images of child pornography. The e-mail included an attached image of child pornography that depicted a 6- or 7-year-old child. Sliepka asked the undercover agent to “Show me what you like and I’ll send more of it…Lets have some fun….”
Law enforcement agents executed a search warrant at Sliepka’s residence and seized his laptop computer. Investigators determined that there were 24 more e-mails from March 25 to April 6, 2013, that contained approximately 63 images and 27 movies of child pornography. These images and videos depict children ages one to 12.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. 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."Former Correctional Officer Pleads Guilty to Murder-for-hire SchemeRead the Press Release
SPRINGFIELD, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former correctional officer at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to hiring someone to kill his wife’s ex-husband.
Robert W. Jones, 43, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to using a telephone with the intent that a murder be committed for payment.
According to court documents, Jones contacted an inmate at the federal medical center while he was employed as a correctional officer. Jones asked him to assist in hiring a hit man to murder his wife’s ex-husband (referred to as “John Doe” in public court documents). Jones was aware that the inmate had been in a leadership position in a drug-trafficking organization, an affidavit says, and had connections to individuals who could carry out such a request.
The inmate, who was cooperating with investigators, met with Jones for 10 to 15 private conversations in March and April 2012. Jones offered to give the inmate a cell phone to call a hit man, avoiding the possibility of the conversation being recorded if the call were placed on a landline at the prison.
As a part of a routine quarterly personnel shift at the medical center, Jones was moved to a different unit and was therefore unable to meet with the inmate for a period of time. The inmate later reestablished contact with Jones after being moved to a cell in the same unit that Jones was assigned. They met again on June 21, 2012, the first day they were in the unit at the same time. They had multiple meetings during July 2012, with Jones standing outside the inmate’s jail cell and speaking to him through an opening in the door. All the meetings were captured on the unit’s surveillance system. During one of those meetings, Jones told the inmate that his wife had left him and took all their belongings except the couch, television and bills, and he blamed John Doe for his wife’s departure.
An undercover FBI agent posed as a hit man named Chuey, and the inmate gave Jones a telephone number to contact Chuey. Jones contacted Chuey and made arrangements to meet in the food court located inside the Battlefield Mall in Springfield. At that meeting, Jones told the undercover agent he would pay him $1,500 to murder John Doe and provided the undercover agent with a photograph of John Doe, his home address, and $1,500 in cash. At the conclusion of the meeting, Jones was arrested.
Under federal statutes, Jones is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the U.S. Medical Center for Federal Prisoners Special Investigative Support, the FBI and the Department of Justice, Office of the Inspector General.Five Columbia Men Indicted for Heroin TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five Columbia, Mo., men have been indicted, in three separate cases, on charges related to distributing heroin.
All of the defendants were charged in a series of indictments returned by a federal grand jury in Jefferson City on Thursday, Nov. 7, 2013.
USA v. Smith
Ravid Donald Smith, 49, Lemont Michael Livingston, 26, and Clifford Andrew Lake, 53, all of Columbia, were charged with one count of participating in a conspiracy to distribute 100 grams or more of heroin from Sept. 24 to Oct. 28, 2013.
The indictment replaces a federal criminal complaint that was filed against the defendants on Oct. 29, 2013. According to an affidavit filed in support of the complaint, police officers received information that Livingston acquired large quantities of heroin in St. Louis, Mo., and, along with Lake and Smith, distributed the heroin in the Columbia area.
On Oct. 28, 2013, the affidavit says, law enforcement officers received information that Livingston was returning from Chicago with a shipment of heroin. When Livingston arrived at his residence, where officers had conducted a controlled buy of $150 worth of heroin about a month earlier, he was immediately detained. A bag containing 200 grams of heroin was recovered from a backpack inside the BMW X5 driven by Livingston. Officers executed a search warrant at Livingston’s residence and found a stolen handgun, products known to be cutting agents for heroin and a drug ledger. Lake was present in the residence when officers served the warrant, and was also arrested.
After learning that Smith had returned to Columbia with a heroin shipment, the affidavit says, law enforcement officers used a cooperating source to make a controlled buy of heroin from him on the same day, and Smith was arrested.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.
USA v. Anderson
Markielle Avion Anderson, 26, of Columbia, was charged with one count of possessing heroin with the intent to distribute and one count of being a felon in possession of a firearm.
The indictment replaces a federal criminal complaint that was filed against Anderson on Oct. 8, 2013. According to an affidavit filed in support of the complaint, law enforcement officers used a cooperating source to conduct a controlled drug transaction on Oct. 7, 2013. When Anderson arrived, the affidavit says, he was arrested. Approximately 10 grams of heroin and a loaded Davis .380-caliber handgun were seized from Anderson’s vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Anderson has two prior felony convictions for driving with a revoked license.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mid-Missouri Drug Task Force, the Columbia, Mo., Police Department and the Jefferson City, Mo., Police Department.
USA v. Nesbitt
Laron Christopher Nesbitt, Jr., 19, of Calumet City, Ill., was charged with one count of possessing heroin with the intent to distribute.
The indictment replaces a federal criminal complaint that was filed against Nesbitt on Oct. 8, 2013. According to an affidavit filed in support of the complaint, law enforcement officers used a cooperating source to conduct a controlled drug transaction on Oct. 7, 2013. Officers arrested Nesbitt, whom the affidavit says had 12 grams of heroin in his pocket.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force, the Columbia, Mo., Police Department and the Jefferson City, Mo., Police Department.
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.Business Owner Pleads Guilty to Scheme to Embezzle $1.3 Million from State FundRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Missouri business owner pleaded guilty in federal court today to charges related to his scheme to embezzle more than $1.3 million from the Missouri Petroleum Storage Tank Insurance Fund.
Robert L. Fine, II, 52, of Lenexa, Kan., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to a federal information that charges him with one count of mail fraud and one count of money laundering.
Under the terms of today’s plea agreement, Fine must pay $1,505,514 in restitution to the Petroleum Storage Tank Insurance Fund, which includes the total amount of the fraud and related costs. Fine paid $350,000 in restitution to the fund today, and must pay the balance owed within approximately 60 days.
Fine was the owner and sole employee of FINEnvironmental, Inc., a Missouri corporation that he operated from an office in his residence. FINEnvironmental performed environmental services for property owners who used or operated a petroleum storage tank.
In 1989, the Missouri General Assembly created the Petroleum Storage Tank Insurance Fund (PSTIF) in response to federal legislation requiring owners and operators of underground storage tanks to have the financial resources available to pay for cleanup of spills or leaks from their tanks. The PSTIF was funded by a fee assessed to petroleum companies on each load of petroleum that is transported into Missouri and by annual fees charged to the owners and operators for insurance coverage.
Fine utilized subcontractors to perform his environmental services, and those subcontractors submitted invoices to Fine for the work they performed. From August 2002 to February 2012, Fine created false invoices purporting to be from one of his subcontractors and inflated the amount of the invoices. Fine mailed the fraudulent invoices to the PSTIF for payment and, over a nearly 10-year period, obtained $924,236 in excess payments from the PSTIF.
Fine also admitted that he obtained additional funds from the PSTIF by fraudulently submitting invoices for an additional groundwater monitoring trip when only one was made, totaling $326,978. The plea agreement cites an additional $66,243 in losses that resulted from Fine’s fraudulent activity.
The total amount of the fraud committed by Fine on the PSTIF is $1,317,469.
Under federal statutes, Fine is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri State Highway Patrol and the Cole County, Mo., Prosecuting Attorney’s Office and the Missouri Petroleum Storage Tank Insurance Fund.Two Men Sentenced in Scheme to Fraudulently Obtain Licenses for more than 100 Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two more men were sentenced in federal court today for their roles in 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, Mo., which is operated by a contractor for the Missouri Department of Revenue.
Domingo Ajanel-Castro, 34, a citizen of Guatemala who was illegally residing in St. Joseph, and Hector Juarez Mendoza, Sr., 55, of St. Joseph, a citizen of Mexico who is a lawful permanent resident of the United States, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Ajanel-Castro was sentenced to four years in federal prison without parole. Mendoza was sentenced to three years and six months in federal prison without parole. The court also ordered Ajanel-Castro and Mendoza to forfeit to the government $125,000 as proceeds of the criminal conspiracy.
Ajanel-Castro and Mendoza have both 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.
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 have been unlawfully issued to illegal aliens as part of this conspiracy.
Mendoza’s wife, Isabel Ramirez Mendoza, 63, of St. Joseph, was sentenced on Sep. 26, 2013, to three years and six months in federal prison without parole after pleading guilty to her role in the conspiracy and to aggravated identity theft. The court also ordered Mendoza to pay a $125,000 money judgment to the government. Prior to the sentencing, Isabel Mendoza had already forfeited several vehicles that were seized by the government because they were used to transport illegal aliens and to further the conspiracy, including a 2004 Chevrolet Silverado, a 2009 Dodge Ram and a 2005 Dodge Durango.
Hector and Isabel Mendoza admitted that they assisted well over 100 illegal aliens in fraudulently obtaining Missouri driver’s and non-driver’s licenses from July 2010 until Jan. 10, 2012. Conspirators (including family members, such as her minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators.
The Mendozas 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. They 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.
The Mendozas referred illegal aliens to Ajanel-Castro so that he could help them obtain identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. Ajanel-Castro obtained the identification documents from co-defendant Pedro Pablo-Solis, 30, a citizen of Guatemala residing in Liberal, Kan. Ajanel-Castro requested identification documents to be of a specific age range for either a male or a female that corresponded with the illegal alien who was purchasing the document set. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
Pablo-Solis, who admitted his role in the conspiracy, pleaded guilty to aggravated identity theft and awaits sentencing.
They knew the vast majority, if not all, of the illegal aliens they helped had stolen the identity of American citizens to fraudulently obtain Missouri non-driver’s licenses. Illegal aliens could later use these fraudulently obtained Missouri non-driver’s licenses as evidence of authorized stay or employment in the United States. The illegal aliens could also potentially use these identification documents to fraudulently obtain credit in the name of another person or to further other fraudulent schemes.
Sometime between June 22, 2009, and Nov. 2, 2011, Isabel Mendoza approached co-defendant Thomas Richard McNamara III, 26, of St. Joseph, who was an employee at the St. Joseph license office. She asked McNamara 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 pleaded guilty on Dec. 11, 2012 to his role in the conspiracy and awaits sentencing. According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to obtain licenses.
McNamara admitted that he accepted improper documents approximately two to three times a week, but he didn’t do this every week. Isabel Mendoza often called 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.
Ajanel-Castro also admitted that he used a Social Security number that belonged to another person, Javier Flores, in order to obtain employment at Triumph Foods in St. Joseph in 2009. After he began working at Triumph Foods, Ajanel-Castro’s salary was garnished to pay for child support owed to the children of the real Javier Flores, thus confirming that Javier Flores was an identity of a real person.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the 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.
Jefferson City Man Indicted for Attempted Sex Trafficking of a ChildRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has been indicted by a federal grand jury for the attempted sex trafficking of a child and for the distribution and possession of child pornography.
Jeremy Ryan Bappert, 29, of Jefferson City, was charged in a three-count indictment returned by a federal grand jury on Thursday, Nov. 7, 2013.
The federal indictment alleges that Bappert attempted to recruit a child under the age of 14 to engage in prostitution between July 2 and July 25, 2013.
Bappert is also charged with one count of distributing child pornography over the Internet and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Columbia, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Grain Valley Man Pleads Guilty to Failing to Pay Employment Taxes, Stealing from Small Business ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Grain Valley, Mo., man who previously operated a payroll services company has pleaded guilty in federal court to failing to pay employment taxes on behalf of his clients, and instead stealing those funds for himself.
Geoffrey Scott Carter, 42, of Grain Valley, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs on Tuesday, Nov. 5, 2013, to a federal information that charges him with five counts of failure to account for and pay over employment taxes.
Carter admitted that he collected $82,580 in employment taxes from five small business clients, which he was supposed to submit to the IRS. Instead, Carter kept the money for his own personal use.
Carter began operating his own business, known as Carter’s Tax Service, in 2001. In the early years, Carter only prepared income tax returns, but starting in 2005 he also began providing payroll services to his small business customers. In 2008 he began only providing payroll services.
The services Carter provided to his clients included preparing and filing Forms 940 and 941 and cutting payroll checks for his clients’ employees. In order to perform these services, Carter was given access to his clients’ bank accounts. To pay his clients’ employment taxes, Carter transferred money from their accounts into his Carter’s Tax Service business bank account, where he commingled the funds, and then submitted the appropriate Forms 940 and 941 to the IRS. He was supposed to submit the payment due along with the Forms 940 and 941.
From 2007 through 2010, Carter deducted and collected from the bank accounts of his clients a total of $82,580 in federal employment taxes, which he failed to pay to the IRS but instead kept and used for personal purposes.
Under federal statutes, Carter 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, on each of the five counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by IRS-Criminal Investigation.
Arkansas Man Indicted for Robbing Blackwater BankRead 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 has been indicted by a federal grand jury for the robbery of Alliant Bank in Blackwater, Mo.
Timothy Patrick Hoyt, 43, of Bella Vista, was charged in an indictment returned by a federal grand jury in Jefferson City on Thursday, Nov. 7, 2013. The federal indictment alleges that Hoyt stole $5,123 from the bank on June 26, 2013.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by FBI, the Cooper County, Mo., Sheriff’s Department and the Altoona, Iowa, Police Department.KC Man Pleads Guilty to Leading a nearly $100 Million, Nationwide Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to leading a tax fraud conspiracy that attempted to receive nearly $100 million in fraudulent refunds from the IRS. Co-conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
“This scheme was based on a nonsensical formula that any honest person would instantly recognize was patently absurd and fraudulent,” Dickinson said. “Fortunately, the vast majority of these refund claims were detected by the IRS and denied. Those who profited from the scheme at the expense of law-abiding taxpayers will be held accountable.”
Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes to one count of conspiracy to defraud the United States by filing fraudulent tax returns and one count of filing a fraudulent tax return.
Under the terms of today’s plea agreement, Poynter will be sentenced to 13 years in federal prison without parole and must pay $951,930 in restitution to the government.
Poynter admitted that conspirators prepared and filed 284 fraudulent tax returns from July 1, 2008, to Sept. 21, 2011. Each of the returns contained false claims that the taxpayer listed was due a refund due to over-withholding of taxes, based on fictitious forms 1099-OID. In actuality, Poynter’s clients had not received interest income from the banks and lenders listed on their Forms 1099, nor had any money been over-withheld. Conspirators claimed that a total of $96 million dollars in fraudulent tax refunds were due. The IRS mistakenly paid out $3.5 million on these fraudulent claims.
Some individuals received hundreds of thousands of dollars in refunds. For the returns that successfully were paid out, Poynter received a fee. In an attempt to mask his involvement, Poynter requested that conspirators refer to his fees as “love donations,” frequently directing them to write checks to “Jerry Love Ministries.” Poynter used computer software to file returns electronically from his karate studio in Blue Springs.
Poynter filed returns in his own name, and in the names of his family. Poynter received a refund of $196,348 as a result of filing a fraudulent claim in July 2008. Poynter personally was responsible for recruiting at least 44 filers to the scheme. Poynter submitted at least $25 million in fraudulent claims on 81 returns filed for his clients, which caused a tax loss to the United States of at least $951,930.
Poynter also recruited “branch managers” who in turn recruited additional filers to the scheme.
Poynter is among 11 defendants who have pleaded guilty, including Kristi Jones, 41, of Riverside, Mo.; Shirley Oyer, 72, of Overland Park, Kan.; Jennifer Wilson, 36, of Cumming, Ga.; Mark J. Murray, 51, of Newton, Ala.; John V. Perdido, 57, of Temecula, Calif.; Earl Lee Davis, 54, of Monroe, La.; Robert E. Morris, 67, of Rocklin, Calif.; and Karen A. Olson, 42, of Wood Dale, Ill. Marian Fine-Kennedy, 36, of Eugene, Ore., and Maria Haro Campos, 42, of Vista, Calif., have each pleaded guilty in separate but related cases.
Poynter conducted a training seminar in December 2008 at the Doubletree Hotel in Atlanta, Ga. At the seminar, Poynter gave a presentation outlining his “OID process,” during which he pointed out that the IRS would issue refunds even if the name listed on the OID form was “Spongebob Squarepants” or “Spiderman.” Poynter told attendees they would use a rented office rather than process the OID returns at home to avoid their homes being raided by the FBI. He talked about attracting attention from IRS criminal investigators, and he provided pointers on how to avoid that outcome. He also joked that his going to prison was a possibility.
In addition to this training session, Poynter conducted and participated in numerous other seminars and conference calls around the country to promote his OID process. Poynter also maintained a Web site called “luckytown” that was used to promote the scheme.
Oyer, the owner of ABC Seamless Siding in Kansas City, Mo., was a promoter and branch manager who recruited at least a dozen clients in furtherance of the scheme. She helped these individuals prepare and file at least 26 fraudulent returns, claiming $12.4 million in refunds. Of those attempts, the IRS paid out $92,974 and denied the remainder. Oyer did not file any returns in her name, and her personal total profit from the scheme was $2,862.
Perdido, who acted as a branch manager and recruited clients for the scheme, received the largest single refund from the scheme – $805,749, which must be forfeited to the government. Perdido received the refund on Feb. 6, 2009, and deposited the check into his bank account on Feb. 11. Perdido and his wife signed the check with “by:” in front of their names, a Sovereign Citizen practice.
More than $500,000 was quickly removed from Perdido’s bank accounts, with four wire transfers to the Philippines of $100,000 each that were used to purchase a car and a house in Batung. Perdido also bought an $11,000 Rolex watch, paid off his credit cards, and invested $200,000 in a private company (Helios). Before he received his refund, Perdido expressed concerns about the process’s legality. After getting the refund, he was concerned about cashing or depositing the check because the IRS might prosecute him. Even after expressing concerns about his potential prosecution for getting the refund check, Perdido became an affiliate in the scheme.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers. Bond holders then file these OID forms with the IRS, along with their income tax forms.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators, working with their branch managers, assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received income from bond proceeds and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ OID bond income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – any bond income. No bond payer had issued any 1099-OID forms. Instead, the bond income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of bond interest.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).Four Men Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four southern Missouri men were indicted by a federal grand jury today in separate and unrelated cases for downloading and distributing child pornography over the Internet.
James Hayden McClelland, 20, of Billings, Mo., was charged with one count of receiving and distributing child pornography over the Internet between July 27, 2011, and Aug. 16, 2012.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the FBI and the Southwest Missouri Cyber Crimes Task Force.
Adam Headley, 34, of Springfield, was charged with one count of receiving and distributing child pornography over the Internet between Jan. 1, 2012, and Feb. 13, 2013.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Kirksville, Mo., Police Department.
Luis Eduardo Martinez, 22, of Carthage, Mo., was charged with one count of receiving and distributing child pornography over the Internet between May 16, 2012, and Dec. 19, 2012.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Cassville, Mo., Police Department and the Nixa, Mo., Police Department.
Ricardo Vargas-Villalobos, 24, of Carthage, Mo., was charged with one count of receiving and distributing child pornography over the Internet between May 16, 2012, and Dec. 19, 2012.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Cassville, Mo., Police Department and the Nixa, Mo., Police Department.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Lee's Summit Man Pleads Guilty to $3 Million Ponzi SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Lee’s Summit, Mo., man pleaded guilty in federal court today to defrauding 39 investors in a $3 million Ponzi scheme.
Ronald W. Shepard, 74, formerly of Lee’s Summit, pleaded guilty before U.S. District Judge Gary A. Fenner to mail fraud.
Shepard received approximately $3,188,765 from approximately 39 investors from January 2006 through December 2009. Shepard returned approximately $1,235,853 to the investors, and lost or spent the rest, resulting in a minimum loss to investors of $1,825,883.
Shepard, who prepared tax returns for individuals, discussed their investments and pitched his own companies as investments. Shepard’s company, Safety Solutions USA, LLC, in Lee’s Summit, developed and marketed a trailer hitch called Tow-Safe. A patent request for the trailer hitch safety device was filed, but rejected by the U.S. Patent Office. Shepard also operated a company called The Real Estate in Lee’s Summit.
Shepard claimed that investors would make anywhere from a 15 percent to 100 percent annual return on their investment. He failed to inform potential investors that the state had issued a cease and desist order that barred him from offering or selling any unregistered security. Shepard has never been registered to sell securities in the state of Missouri.
Shepard told investors that their money was used to purchase property in Kansas City, the Lake of the Ozarks and Hawaii. Except for purchasing his own personal residence at the Lake of the Ozarks, however, Shepard did not purchase any real estate. Instead, Shepard used investor funds for personal living expenses, to pay other investors, to pay relatives, in disbursements of cash to himself and in real estate ventures.
Many investors liquidated their Individual Retirement accounts or 401(k) accounts and transferred the proceeds to Shepard for investment. Shepard told investors that if they liquidated retirement funds, thereby incurring penalties, he would refund their initial investment, plus the amount of penalty, plus interest.
Under the terms of today’s plea agreement, Shepard will be sentenced to two years in federal prison without parole, to be served concurrently with the five-year sentence he is currently serving after his supervised release was revoked in another case. Shepard must pay a total of $1,825,883 in restitution to his victims.
This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the FBI and the Missouri Division of Securities.Former Attorney Sentenced for Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Jackson County, Mo., attorney was sentenced in federal court today for bank fraud, which involved stealing funds from the Sam and Lindsey Porter foundation, as well as bankruptcy fraud.
Harley Kent Desselle, 63, of Raytown, Mo., was sentenced by U.S. District Judge Dean Whipple to three years in federal prison without parole. The court also ordered Desselle to pay a total of $348,794 in restitution, including $343,045 to one of his victims and $5,749 to the Bankruptcy Trustee for the U.S. District Court.
On May 6, 2013, Desselle pleaded guilty to one count of bank fraud and one count of making a false oath in a bankruptcy proceeding. He also admitted that he defrauded the widow of a longtime friend in an investment fraud scheme.
“This was a pattern of deceit, a series of fraud schemes that spanned at least eight years by a now-disgraced and disbarred attorney,” Dickinson said. “He abused his position as an officer of the court to take advantage of a grieving widow and to prey upon the memory of murdered children. He abused the legal system in a fraud-tainted bankruptcy filing. The law that he was sworn to serve, but spurned instead, will hold him accountable.”
At the time of the fraud schemes, Desselle was an attorney in private practice and operated an investment company called New Century Investments. Desselle was suspended from the practice of law in December 2008 and disbarred by the Missouri Supreme Court in April 2009.
Porter Foundation Scheme
Sam and Lindsey Porter were the children of Tina Porter. They disappeared in 2004. Their bodies were not discovered until 2007, when their father admitted his role in their deaths and pleaded guilty to murder. Beginning in 2007, donations were made to a bank account opened at the Bank of Grain Valley under the name of samandlindsey.org, Inc. Funds donated to the bank account were intended for use in building a children's playground.
Desselle charged $2,500 for the initial set up of samandlindsey.org, Inc. He began managing the samandlindsey.org, Inc., bank account in September 2007. At the time the foundation was established, Desselle told Tina Porter he would take care of everything on the account. He was the only person who could sign foundation checks. Porter asked Desselle, on numerous occasions, for bank statements and/or documents related to the account, but Desselle refused to produce documents and would not disclose the bank account information.
On Oct. 25, 2007, Desselle wrote a $12,000 check drawn on the foundation’s account and deposited it into his law firm trust account. Porter did not authorize the $12,000 check. On Oct. 29, 2007, Desselle wrote a $7,500 check drawn on the foundation’s account, made payable to New Century Investments, and deposited it into his New Century account. Porter was not aware of and did not authorize the $7,500 check.
When Porter learned of the $19,500 in misappropriations she insisted that Desselle return the funds to the foundation’s account. Desselle deposited two checks into the foundation account – a $19,500 check with “original investment” listed in the memo and a $2,238 check with “balance of investment with interest” listed in the memo. The $2,238 check actually came from legal fees earned by Desselle in his law practice and/or money borrowed from friends or family members instead of interest earned on the account.
Nunez Bankruptcy Scheme
Desselle acted as the attorney for Christina Nunez in her bankruptcy filing in 2008. Nunez owned a motorcycle that would not have been exempt under bankruptcy law. Desselle directed Nunez to sell the motorcycle and give him the proceeds, which she believed would be placed in the law firm’s trust account and used to pay down debt due her creditors. Desselle told Nunez the motorcycle sale proceeds would be exempt from bankruptcy creditors and not part of the estate.
Nunez sold the motorcycle for $13,500; she kept $500 and gave the remaining $13,000 to Desselle. Desselle used the $13,000 deposited in trust for Nunez for his own personal expenses rather than payment of Nunez's creditors.
Desselle filed Nunez's bankruptcy on Oct. 13, 2008. Nunez testified at a subsequent bankruptcy hearing that she never reviewed the bankruptcy petition and never signed the schedules. The bankruptcy schedules submitted by Desselle on Nunez's behalf did not include the $13,000 he received from Nunez for the sale of the motorcycle.
On May 12, 2009, the bankruptcy court ordered Desselle to refund all the money withdrawn from Nunez's trust account to the bankruptcy trustee. (Desselle refunded $7,251, but kept the remaining $5,749.) During the hearing, the court stated Desselle was involved in "...numerous acts of malpractice, deceit, and ...stealing," and "...likely falsified all of the bankruptcy schedules and statements and the various documents that had to be filed in order to initiate a bankruptcy filing."
Clifton Life Insurance Scheme
In addition to the two specific counts of the indictment to which Desselle pleaded guilty, his plea agreement also acknowledges that he defrauded Nancy Clifton, to whom he must pay $343,045 in restitution.
Clifton received $750,000 in life insurance proceeds in 1996 when her husband was killed in a motor vehicle accident. Desselle, a longtime friend of Clifton’s husband, offered to invest the life insurance proceeds for Clifton in New Century and promised her high yields on the investment.
Clifton received only two investment statements from Desselle, one in 2006 and one in 2007. Those statements were both false and fraudulent. Desselle created both documents to lull Clifton into believing her money was safe. In reality, Clifton's funds were lost by Desselle several years earlier, between 1998 and 2000.
Desselle made “interest payments” on Clifton’s investments by creating false documents to lull her into believing she was receiving interest payments, when the funds actually came from Desselle’s law firm or from funds Desselle solicited from family members. One of those payments came from the samandlindsey.org, Inc., account.
When Clifton read newspaper reports of Desselle’s handling of the Porter foundation account in 2008, she told Desselle to liquidate her investments as soon as possible. Desselle eventually admitted that her investments had all been lost.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by FBI and the U.S. Trustee for Region 13 and the Kansas City Office of U.S. Trustee. Region 13 of the U.S. Trustee Program is headquartered in Kansas City, Mo., with additional offices in St. Louis, Mo., Little Rock, Ark. and Omaha, Neb. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.Carrollton Property Owner Pays Settlement for Logging in Wetlands EasementRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the government has reached a settlement agreement with a Carrollton, Mo., man who admitted he logged trees that were located in a wetlands easement on his property.
Ben Gibson, of Carrollton, Mo., paid the government $11,419 as part of a settlement agreement. Under the terms of the agreement, the government will not file a civil complaint against Gibson and will use that payment to implement a forest mitigation plan, including replanting trees to replace those that were harvested by Gibson.
“The federal government has made a substantial investment in easements to protect our wetlands from destruction,” Dickinson said. “This is an important natural resource for all Missourians. Property owners who willingly participate in the Wetland Reserve Program must honor their commitment or face the consequences.”
In January 2008, the government paid $86,424 to Gibson’s company, By-Pass, to acquire the easement, which explicitly prohibits harvesting timber. After the dissolution of By-Pass, the property was transferred to Gibson. On Oct. 11, 2011, personnel with the Natural Resources Conservation Service discovered that 97 trees had been harvested from the easement site. Gibson admitted that he was responsible for harvesting the trees, which had a total volume of 42,204 board-feet with an estimated market value of $8,230.
Under the terms of the settlement agreement, Gibson acknowledges that any subsequent violation of the easement will constitute a breach of the settlement agreement and entitle the government to $86,424 in damages (the amount paid to obtain the easement).
The Wetland Reserve Program is a voluntary program that provides landowners the opportunity to protect, restore, and enhance wetlands on their property by enrolling acreage into the program through the use of permanent easements, 30-year easements, restoration cost share agreements, or any combination of those options.
This case was overseen by Assistant U.S. Attorney Amy B. Blackburn.
Springfield Man Sentenced to 72 Years in Prison for Armed Bank RobberiesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man was sentenced in federal court today for the armed robberies of two Springfield banks and a drugstore in November 2008.
Mark Joseph Morris, 49, of Springfield, was sentenced by U.S. District Judge Greg Kays to 72 years and six months in federal prison without parole. The court also ordered Morris to pay $5,632 in restitution. Morris was sentenced as a career criminal due to his prior felony convictions.
On March 21, 2013, Morris was found guilty of three counts of possessing a firearm during a crime of violence. Morris had earlier pleaded guilty (on Jan. 11, 2013) to committing the three robberies related to the firearm charges. Morris went to trial on the firearm charges, claiming the gun he used in the robberies was a BB gun. Video surveillance at the banks and drug store confirmed Morris’ use of a firearm. However, the firearm used by Morris to commit the robberies was never recovered.
Morris admitted that he robbed Bank of America, 2633 W. College Rd., on Nov. 7, 2008. Evidence introduced during the trial indicated that Morris handed a note to a bank teller and then revealed a handgun concealed in his waistband. He tapped on the handgun with one hand and pointed to the cash drawer with the other. The teller removed a cash drawer and placed it on the counter. Morris took $3,208 from the drawer and ran out of the bank.
Morris also admitted that he robbed the Walgreens Drug Store at 1930 W. Grand St. on Nov. 17, 2008.
Morris also admitted that he robbed Bank of America, 710 W. Sunshine, on Nov. 21, 2008. Morris approached a bank teller and showed her a black pistol that was in his waistband. When the teller did not immediately respond, Morris removed the pistol from his waistband, pointed it at the teller and demanded, “Give me all your money.” The teller removed $8,957 from her teller drawer and placed it on the counter. Morris tucked the pistol back into his waistband, grabbed the cash from the counter, and ran out of the bank.
This case was prosecuted by Assistant U.S. Attorneys Abram McGull II and Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.Mexican National Pleads Guilty to $9 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national pleaded guilty in federal court today to his role in a $9 million drug-trafficking conspiracy that distributed hundreds of kilograms of methamphetamine in the Kansas City area.
Porfirio Almeida-Perez, also known as “Cadena,” “Flan,” “Guarache” and “Pilo,” 35, a citizen of Mexico residing in Kansas City, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes to the charge contained in a March 13, 2012, federal indictment.
Almeida-Perez admitted that he participated in a conspiracy to distribute methamphetamine from Jan. 1, 2007, to March 13, 2012. Under the terms of today’s plea agreement, Almeida-Perez is jointly and severally liable with 31 co-defendants to pay a money judgment of $9 million. That amount represents the proceeds from the distribution of 272 kilograms of methamphetamine during the conspiracy, based on a conservative street price of $16,000 per pound.
According to today’s plea agreement, on Oct. 28, 2011, a co-conspirator was delivering a shipment of methamphetamine from California to Almeida-Perez, who was heavily involved with distributing methamphetamine in the Kansas City area. The co-conspirator was arrested by Missouri State Highway Patrol troopers, who stopped the co-conspirator on I-29 and searched his vehicle. Upon searching the vehicle’s engine compartment the trooper discovered a false radiator and recovered eight packages of methamphetamine, weighing approximately nine pounds.
Under federal statutes, Almeida-Perez is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10 million. A sentencing hearing is scheduled on Feb. 28, 2014.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, the Missouri State Highway Patrol, the Kansas State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Four Plead Guilty to $400,000 Stolen Vehicles, ID Theft, Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four defendants pleaded guilty in federal court this week for their roles in a nearly $400,000 conspiracy to use identity documents, checks and credit cards that were either found in stolen vehicles or pilfered from vehicles to make fraudulent purchases and to obtain methamphetamine.
Roberta Anne Welte, 27, of Blue Springs, Mo., and Brandi Nicole Neely, 31, of Arnold, Mo., pleaded guilty in separate appearances today before U.S. District Judge Dean Whipple. Melinda R. Kermer, 28, of Raytown, Mo., and Christopher Lee Curd, 29, of Kansas City, Mo., each pleaded guilty on Tuesday, Oct. 29, 2013.
Welte and Neely each pleaded guilty today to participating in the conspiracy to illegally transport stolen vehicles across state lines from Oct. 19, 2007, to Jan. 10, 2008, and possessing and distributing methamphetamine to further the conspiracy. The purpose of the conspiracy was to steal checks, credit cards, Social Security cards, driver’s licenses and the accompanying personal identifying information in order to make fraudulent purchases at various retail stores in the Kansas City metropolitan area and to obtain methamphetamine. The total loss resulting from their participation in the conspiracy was $398,168.
On Christmas Day in 2007, Welte admitted, she worked on behalf of a co-conspirator to package stolen credit cards, checks and a Social Security card belonging to one victim, stacks of KU tickets belonging to another victim, and other stacks of checks. On the same day, she used a stolen credit card belonging to one of the victims at a Quick Trip and she possessed a stolen 2005 Acura MDX SUV belonging to two additional victims. Welte admitted that she possessed a stolen Jeep Cherokee on Oct. 25, 2007, and that she transported a stolen Navigator from Kansas to Missouri on Dec. 20, 2007. Welte also admitted that she participated in pilfering several vehicles on Dec. 20, 2007, including vehicles that belonged to four victims in Shawnee, Kan.
Neely admitted that in December 2007 and January 2008 she repeatedly used stolen credit cards to purchase hundreds of dollars worth of merchandise and fuel. On Jan. 5, 2008, she and a co-conspirator burglarized a vehicle in a garage in Blue Springs, pilfered two other vehicles in Blue Springs, and operated and possessed a stolen Dodge Intrepid belonging to a Blue Springs resident. Neely was in possession of numerous driver’s licenses, Social Security cards and other items primarily taken from additional victims whose vehicles were pilfered or stolen. Neely was also in possession of several pieces of mail that had been stolen from the mailboxes of nine Blue Springs residents in January 2008.
Kermer admitted that she stole two vehicles in November 2007 and used a credit card belonging to one of the victims to make purchases at a Wal-Mart store in Liberty, Mo. Kermer also admitted that she possessed a stolen Cadillac belonging to another victim in Sugar Creek, Mo., as well as numerous driver’s licenses, credit cards, checks, casino cards and other items that had been pilfered from various vehicles and mail that had been stolen from a Sugar Creek victim. On Dec. 25, 2007, Kermer traded 1.75 grams of methamphetamine to a coconspirator for a gold VISA credit card.
Curd admitted that he deposited $875 into his personal bank account from stolen checks that had been pilfered from a vehicle in Independence, Mo. He also admitted that he deposited a $474 stolen personal check into his bank account from an Overland Park, Kan., victim whose vehicle had been stolen. Curd deposited a $250 personal check into his bank account that was taken from the vehicle of a Lenexa, Kan., victim. He also possessed another checkbook that had been stolen from an additional victim’s vehicle in Independence, and numerous credit cards, driver’s licenses, stolen personal checks and other items.
Co-defendants Robert Alva Curd, 29, and Nicholas E. Dobbins, 25, both of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy.
Under federal statutes, each of the co-defendants are 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 Jane Pansing Brown and William L. Meiners. It was investigated by the U.S. Postal Inspection Service – Office of Inspector General, the U.S. Secret Service and the Overland Park, Kan., Police Department.
Court Employee Pleads Guilty to $185,000 Scheme to Cheat Health Insurance ProgramRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an employee of the Kansas City, Mo., Municipal Court pleaded guilty in federal court today to stealing more than $185,000 from the city’s health insurance provider, along with hundreds of other public employees, by falsely claiming to have run marathons and competed in other athletic events for cash incentives.
Crystal Burgin-Woods, 43, an employee of the municipal court, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of wire fraud.
By pleading guilty today, Burgin-Woods admitted that she made fraudulent submissions to the city’s health insurance program on behalf of 383 employees, resulting in the issuance of 939 gift cards worth a total of $185,665.
Burgin-Woods received health insurance coverage from Blue Cross/Blue Shield of Kansas City. She was therefore eligible to participate in a wellness program called “Points to Blue.” The program offered gift cards to Burgin-Woods and other insured employees based upon entries made to the Points to Blue Web site, where they could log various exercise programs and diet programs. Every 1,000 “points” earned by an employee translated to $1 towards a gift card, up to a maximum of $250 annually. More strenuous exercises earned more points.
Burgin-Woods and other employees submitted materially false entries to the Points to Blue Web site, purporting to have completed extremely strenuous activities in order to fraudulently obtain the maximum gift card of $250. To make even more money in this scheme, Burgin-Woods and others submitted materially false entries for other employees and their eligible dependents, in exchange for receiving a portion of the fraudulent gift card proceeds.
Among the fraudulent submissions that Burgin-Woods made to Points to Blue were claims that a 3-year-old child had completed four triathlons, three marathons, two duathlons and three half marathons.
Burgin-Woods is among six employees of the city of Kansas City, Mo., who have pleaded guilty to their roles in the wire fraud scheme.
Matt Tholen, 30, an emergency medical technician, admitted that he made fraudulent Points to Blue submissions on behalf of 62 employees, resulting in 144 gift cards worth a total of $17,600. Tholen was sentenced on Sept. 5, 2013, to three years of probation and ordered to pay $17,600 in restitution.
Matt Stivers, 42, an employee of the city’s information technologies department, admitted that he made fraudulent Points to Blue submissions on behalf of 80 employees, resulting in 248 gift cards worth a total of $39,070.
Kim Blair, 36, an employee of the city’s parks and recreation department, admitted that she made fraudulent Points to Blue submissions on behalf of 83 employees, resulting in 238 gift cards worth a total of $30,485.
Sylvia Sims, 47, an employee of the city’s parks and recreation department, admitted that she made fraudulent Points to Blue submissions on behalf of 28 employees, resulting in 90 gift cards worth a total of $8,925.
Michael King, 31, an employee of the city’s water department, admitted that he made fraudulent Points to Blue submissions on behalf of 51 employees, resulting in 79 gift cards worth a total of $12,745.
As a result of the scheme, 1,253 fraudulent gift cards were issued, totaling $310,960.
Under federal statutes, each of the defendants is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $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 John E. Cowles. It was investigated by the U.S. Postal Inspection Service Task Force, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Overland Park, Kan., Police Department.Springfield Man Pleads Guilty to Scheme to Sell Thousands of Counterfeit DVDsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has pleaded guilty in federal court to charges related to a scheme to sell thousands of counterfeit DVDs over the Internet.
Matthew Cerullo, 42, of Springfield, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, Oct. 28, 2013, to a four-count information that charges him with mail fraud, trafficking in counterfeit labels, trafficking in counterfeit goods and making false statements to federal agents.
Based on records obtained from the U.S. Postal Service, the United Parcel Service (UPS), DHL, EBay and Amazon.com, federal agents determined that Cerullo purchased and received more than 22,000 counterfeit DVDs from a distributor in Hong Kong, China between Feb. 13, 2013 and Sept. 10, 2013.
According to court documents, the federal investigation began when a shipment of counterfeit DVDs from Hong Kong was seized by Customs and Border Protection agents at JFK Airport. The counterfeit DVDs were being shipped to a UPS store located in Springfield under the name of a business owned by Cerullo.
Homeland Security Investigations (HSI) agents interviewed Cerullo at his residence on May 2, 2013. Cerullo told agents that he had not receive a seizure notice from Customs and Border Protection. Cerullo also told agents that he orders toys and jewelry from China to resell on EBay or to local venders, but does not buy DVDs. Cerullo claimed that he owns only one business, C3 Wholesale, LLC.
During the course of the investigation, however, agents learned that Cerullo’s statement contained false and fraudulent information that was designed to mislead them and their investigation. Agents determined that Cerullo had in fact received four prior seizure notices from Customers and Border Protection; these notices were discovered in his desk during the execution of a search warrant at his residence. Agents also learned that Cerullo owned, operated and sold counterfeit DVDs through four different businesses: C3 Wholesale, LLC; EJC Supply, LLC; Midwest Wholesale and Capital Sierra, LLC; and EJC Supply Company.
On Sept. 3, 2013, agents observed Cerullo mail a large quantity of packages at a local post office. Postal Inspectors inspected the contents of these packages and discovered that Cerullo had mailed 165 packages of counterfeit DVDs to various individuals around the country. Inspectors also noted that the return address on each package was fictitious.
The next day, federal agents executed a search warrant on Cerullo’s residence and a storage locker that Cerullo rented. Agents discovered more than 22,000 counterfeit DVDs between those locations.
Under federal statutes, Cerullo is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Department of Homeland Security.Former Bolivar Clinic Physician Sentenced for Illegally Dispensing NarcoticsRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former physician at a Bolivar, Mo., health clinic has been sentenced in federal court for illegally distributing prescription drugs.
Nolan Denny Crisp, 76, of Halfway, Mo., was sentenced by U.S. District Judge Brian C. Wimes on Monday, Oct. 28, 2013, to two years in federal prison without parole. The court also ordered Crisp to pay a $10,000 fine.
Crisp pleaded guilty on April 8, 2013. Under the terms of his plea agreement, Crisp was required to surrender his license to practice medicine; he can never again seek licensing to practice medicine in the United States.
“A doctor handing out prescriptions in the parking lot is no better than a drug dealer on the street corner,” Dickinson said. “As a professional who certainly knew the health risks and the threat to public safety, he betrayed his oath and the trust of the community in order to profit from the dangerous abuse of prescription drugs.”
Special Agent in Charge of the FBI Michael Kaste stated, “There is no tolerance for the reckless dispensing of controlled substances. Dr. Crisp’s actions were a betrayal of his oath and the public’s trust resulting in significant harm. Law enforcement remains committed to investigating medical professionals who abuse their positions of trust, escalating the growing and serious problem of non-medical use of prescription pain relievers.”
Crisp was employed at Pomme de Terre Wellness Center (also known as the Bolivar Family Wellness Clinic and Northwoods Psychiatric Services, Inc.) in Bolivar from June 2009 through Nov. 10, 2010 to provide pain management and other services to patients.
Crisp admitted that he wrote prescriptions for OxyContin, Oxycodone Hydrochloride, and Oxycodone-Aspirin for a purported patient with whom he was involved in a sexual relationship. The prescriptions were illegal because they were not in the usual course of professional practice and for a person who had no legitimate medical need for the prescriptions.
Current and former clinic employees expressed concerns about Crisp’s prescription-writing practices. For example, clinic staff noticed Crisp meeting people in the parking lot and giving them prescriptions, even though they were not being seen in the clinic. The clinic was getting so many patients claiming that their prescriptions were lost or stolen that they began requiring a police report. A nurse practitioner said word got out that Crisp was generous with narcotics prescriptions, and she would see patients parked across the street in a church parking lot waiting for him so they could get prescriptions. She also said that sometimes the clinic nurses would run a drug screen that revealed the patient was not taking the drugs being prescribed; they informed Crisp, but he continued writing prescriptions for the patient.
The federal investigation included reviewing overdose reports from Citizens Memorial Hospital, Crisp’s appointment schedule for the clinic, Crisp’s Medicaid billing records while he was at the clinic, information regarding prescriptions written by Crisp and filled at six major pharmacies in Bolivar, and information from the Polk County Coroner. During the period that Crisp worked at the clinic, there were 96 overdose incidents at the hospital, 29 of whom were connected to his care. During that same period, six of the patients who died from overdoses were connected to his care.
The government retained an internal medicine physician specializing in pain management to review patient files. The physician was provided with charts for certain patients who were known to be drug abusers or who had overdosed. In the physician’s report, he provided background regarding the standard of care for the use of controlled substances in the treatment of pain. He also provided a detailed analysis of Crisp’s treatment of 20 patients. For the 20 patients, his opinion was that Crisp’s treatment was reckless, dangerous, life-threatening, and inconsistent with sound medical practice.
This case was prosecuted by Assistant U.S. Attorney Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, the Bolivar, Mo., Police Department and the Missouri Medicaid Fraud Control Unit.
Texas Man Sentenced for Transporting a Minor to Joplin for ProstitutionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man was sentenced in federal court today for transporting a minor across state lines to engage in prostitution.
Jerrod Lamonte Marshall, also known as “Jacoby” and “Wood,” 40, of Amarillo, Texas, was sentenced by U.S. District Judge Brian C. Wimes to 12 years and seven months in federal prison without parole. The court also ordered Marshall to pay $2,900 in restitution to his victim. Today’s sentence must be served consecutively to an unrelated Texas case.
On Feb. 6, 2013, Marshall pleaded guilty to transporting a minor to engage in prostitution.
The 15-year-old victim, identified as “M.S.,” was arrested for prostitution by the Joplin Police Department on Jan. 20, 2012. She told investigators that she had been working as a prostitute for Marshall in Tulsa, Okla., prior to being moved to Joplin.
This case was prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department and the Fayetteville, Ark., Police Department.
KC Man Charged with Extortion Related to Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with attempting to extort money from the FBI related to a threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
“I want to assure the community that our water supply is safe,” Dickinson said. “We don’t believe there was ever a credible threat to public health and safety. There is no evidence that anyone actually possessed any chemicals to contaminate public water supplies. The chemicals were as fictional as the conspirators in this imaginary plot.
“We must nevertheless take such threats seriously,” Dickinson added, “and prosecute those who not only make threats, but attempt to illicitly profit from them.”
Manuel Garcia, 69, of Kansas City, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Garcia was arrested today and remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s federal criminal complaint, Garcia made several telephone calls in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. An FBI agent recognized Garcia’s voice on the phone calls, and agents contacted Garcia on Wednesday, Oct. 23, 2013.
Garcia told the federal agents that two of his acquaintances, named Raul and Shariff, were going to carry out the plan to put an unknown chemical into the water supply of the four cities. They had tested their plan out on some horses, Garcia said, and the animals went into convulsions and died. Garcia stated that for $10,000 and a grant of immunity he would attempt to locate Raul and Shariff.
The affidavit alleges that Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia allegedly claimed that the water supplies of Kansas City, St. Louis, Wichita, and Topeka, Kansas would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked about an officer returning the call and Garcia hung up.
On the same day, the affidavit says, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat.
Garcia allegedly called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice on all three phone calls, the affidavit says. Garcia’s residence is close to the exact location the cellular tower system identified as the vicinity from which one of the calls originated.
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 Brian Casey. It was investigated by the FBI.Springfield Man Sentenced to 20 Years for Illegal Drugs, FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing methamphetamine and a firearm.
Allewa T. Whitley, 32, of Springfield, was sentenced by U.S. District Judge Beth Phillips to 20 years in federal prison without parole.
On May 9, 2013, Whitley pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
Springfield police officers searched Whitley’s apartment on Feb. 22, 2011, and found multiple components of an active methamphetamine lab and evidence of distribution. Officers also located multiple amounts of methamphetamine in various bags, including one bag that contained 84.7 grams of methamphetamine at 100 percent purity level. Another bag contained 57.63 grams of methamphetamine. Officers found $1,736 in Whitley’s car. Whitley had 7.35 grams of methamphetamine and $2,000 on his person.
Officers also found a North American Arms .22-caliber revolver in Whitley’s apartment. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Whitley has prior felony convictions for distributing a controlled substance, possession of a controlled substance, possession of a chemical with intent to create a controlled substance, burglary and tampering.
This case was prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Cynthia J. Hyde. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former School Employee Sentenced to 20 Years 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 a former employee of the Joplin, Mo., school district was sentenced in federal court today for sexually exploiting several child victims.
Ronny Justin Myers, 35, of Joplin, was sentenced by U.S. District Judge Beth Phillips to 20 years in federal prison without parole. The court granted the government’s motion for an upward variance and sentenced Myers to a longer prison term than was recommended under the federal sentencing guidelines (151 to 188 months). Following his prison term, Myers will be on supervised release for the rest of his life. The court also ordered Myers to pay $5,000 in restitution to a 14-year-old victim (identified in court documents as “C.A.”).
On May 13, 2013, Myers pleaded guilty to transferring obscene material to a minor and to enticing a minor for criminal sexual activity. At the time of his arrest, Myers had been employed as an assistant network systems administrator for the Joplin school district since December 2005.
According to court documents, Myers contacted C.A. via Facebook in November 2012. This contact prompted C.A. to disclose to a school counselor that she had been repeatedly sexually molested by Myers when she was between the ages of 8 and 12. A law enforcement officer assumed C.A.’s identity and began communicating with Myers. These Internet exchanges became very graphic and Myers sent obscene images to C.A.
On Feb. 15, 2013, Myers attempted to entice C.A. to meet him in order to engage in sexual activity during his lunch hour from work. Myers drove to the Joplin mall to pick up C.A. but was met by law enforcement officers who were waiting for him. Myers avoided capture and led police on a high speed car chase through the city of Joplin before being arrested.
During an interview with law enforcement officers, Myers admitted that he had sexually molested three young girls (ages 6, 9 and 11). He also admitted that he secretly recorded a 17-year-old engaging in sexual activity.
Myers also told law enforcement officers that he secretly stored child pornography on his computer. He stated that he had approximately 10 child pornography images of Joplin school district students, four of whom have been identified and range in age from 15 to 16 years old. Myers discovered those images when he accessed the students’ laptop computers.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by Southwest Missouri Cyber Crimes Task Force, the Baxter, Kan., 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."Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fordland, Mo., man who was on parole after being convicted of child molestation was sentenced in federal court today for downloading child pornography to his cell phone.
Thomas E. Wilson, 27, of Fordland, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Wilson was convicted of child molestation in Webster County Circuit Court in 2006 and sentenced to seven years in state prison. He was released on parole in January 2011, and was still on parole at the time of the federal offense. Wilson’s parole was revoked; his federal sentence will be served consecutively to the state sentence, followed by federal supervised release for the rest of his life.
Wilson pleaded guilty on June 10, 2013. He was arrested after an Ozark, Mo., police officer noticed him sitting in his car in the parking lot of a closed business on Nov. 15, 2012. When the officer examined Wilson’s cell phone, he discovered images of child pornography. More than 150 images of child pornography were identified in a forensic examination of the phone.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by 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."Reeds Spring Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reeds Spring, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Seth Eugene Henderson, 40, of Reeds Spring, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Henderson was sentenced as an armed career criminal due to his prior felony convictions.
On June 26, 2013, Henderson pleaded guilty to being a felon in possession of a firearm. Henderson admitted that he was in possession of a loaded Hi-Point 9mm pistol on Dec. 19, 2012. Henderson was the passenger in a stolen truck that eluded law enforcement officers during a pursuit. Henderson, carrying the pistol, fled from the vehicle and was chased by a sheriff’s deputy. After a short chase, the officer subdued Henderson with his Taser and arrested him.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Henderson has two prior felony convictions for distributing a controlled substance as well as prior felony convictions for manufacturing or possessing a controlled substance with the intent to distribute, burglary and possession of a chemical with the intent to manufacture a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Stone County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Columbia Man of Illegally Possessing FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was convicted in federal court today of illegally possessing a firearm.
Victor Lee McNeary, Jr., 38, of Columbia, was found guilty of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that McNeary was in possession of a Smith & Wesson .380-caliber handgun on Dec. 11, 2011. According to court documents, Columbia police officers responded to a disturbance at Swan Lake Restaurant, 10 Southampton Drive, at approximately 1 a.m. on that day. An officer was informed that McNeary had been in possession of a handgun but had left the scene. Officers found McNeary at a McDonald’s restaurant and questioned him about the disturbance. When an officer searched McNeary and found the handgun in his coat pocket, McNeary was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McNeary has six prior felony convictions for robbery, two prior felony convictions for armed criminal action, two prior felony convictions for tampering and a prior felony conviction for attempted burglary.
According to a witness, McNeary started a fight inside the club and was escorted out. He started another fight in the parking lot that was broken up, and McNeary was told to leave. Instead, McNeary tried to run back into the club and tried to pick a fight with one of the security members. McNeary started walking towards his Cadillac that was parked across the street and continued to yell and scream, along with his girlfriend who was also yelling and screaming. As McNeary got closer to his car he started yelling that he was going to get a gun. McNeary entered the vehicle through the passenger side and pulled a small black semi-automatic handgun from the vehicle. McNeary left shortly after by himself and the police were called.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for more than four hours over two days before returning the guilty verdict to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Oct. 21, 2013.
Under federal statutes, McNeary 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, 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 Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Boone County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
KC Business Owner Pays $78,000 to City of Nixa as Restitution for Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., business owner has paid $78,810 in restitution to the city of Nixa, Mo., as part of a pretrial diversion agreement.
Gary N. Cohn of Kansas City was the subject of a federal investigation for his role in a mail fraud conspiracy. Cohn operates GNC, a Kansas City business that distributes a variety of products to municipalities and other customers. Cohn was identified during a federal criminal investigation that resulted in the indictment and conviction of former Nixa city employees Larry Covington and David Griggs. Covington and Griggs were involved in a scheme to defraud the city of Nixa of more than $756,000 from October 2004 to February 2009.
Covington and Griggs each pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, theft from an organization receiving federal funds; Covington also pleaded guilty to one count of mail fraud. Covington was sentenced on Nov. 9, 2010, to nine years in federal prison without parole. Griggs was sentenced on July 26, 2010, to two years and eight months in federal prison without parole.
Cohn maintained a business relationship with the city of Nixa through Covington, who was the city’s street superintendent. Cohn billed the city of Nixa, by mail, for goods that were delivered to Covington for his personal use and for products that were not delivered or were not what was represented.
Under the terms of his pretrial diversion agreement, which was signed on Sept. 30, 2013, the prosecution of the offense was deferred for 18 months while Cohn is placed under supervision and required to pay $78,810 in restitution. Cohn paid that restitution on Monday, Oct. 21, 2013.
Cohn also agreed that he would not conduct any business with any municipality, school district, or other public entity in the southern and southwestern portion of the Western District of Missouri during the 18-month period of supervision.
According to a statement of agreed facts that was signed by Cohn, Covington routinely ordered products from Cohn and GNC at the same time he made fraudulent purchases amounting to approximately $750,000 through dummy companies. Nixa public works department employees reported that specific products ordered from Cohn and GNC were never delivered and could not be located in inventory at any city facility. In fact, the Nixa public works department did not have adequate space to store the quantity of products billed by GNC.
According to Nixa public works department employees, GNC sometimes supplied products that were significantly more expensive than similar products. Numerous products purchased from GNC demonstrated grossly exaggerated prices, one of which was more than 1,339% higher than the suggested retail value of the product.
Cohn admitted that he paid $3,100 to establish an account for Covington at the Show-Me Birds Hunting Resort located in Baxter Springs, Kan. Covington used this account to pay for hunting trips. In a statement to the owner of the hunting resort, Cohn said that he was making the payments in order to "take care of” Covington so that he would continue to buy products from him.
If Cohn violates the conditions of the pretrial diversion agreement, he could be prosecuted for the alleged criminal conduct. If Cohn completes the diversion program and fulfills all the terms and conditions of the agreement, no prosecution will be instituted and the matter will be closed.
The criminal case involving Covington and Griggs was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Nixa, Mo., Police Department, the FBI and IRS-Criminal Investigation.
Kearney Man Sentenced to 20 Years for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kearney, Mo., man was sentenced in federal court today for producing and possessing child pornography.
Austin D. Hurtado, 20, of Kearney, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 20 years in federal prison without parole.
Hurtado pleaded guilty on Feb. 8, 2013, to one count of producing child pornography and one count of possessing child pornography. According to his plea agreement, an FBI agent identified Hurtado’s computer (at his former residence in Smithville, Mo.) as sharing child pornography over the Internet. Using a peer-to-peer file-sharing program, the agent downloaded images of child pornography from Hurtado’s computer on Nov. 21 and 22, 2011.
Hurtado’s two laptop computers were seized by law enforcement officers and a forensic examiner found they contained numerous videos of an 8-year-old child in the shower. Hurtado’s face was visible in at least one of those videos. The forensic examiner also found the same child victim in additional numerous photos and videos of child pornography. Hurtado possessed 191 child pornography videos and more than 80 images of child pornography.
Under the terms of his plea agreement, Hurtado 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.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Nine Individuals, Four Businesses Indicted for Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Columbia, Mo., siblings are among nine individuals and four businesses indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Matthew Ashby Hawkins, 38, his brother, Patrick Ross Hawkins, 31, and his sister, Molly Jane Carmichael, 36, all of Columbia, Alexander Vladimir McMillin, 29, of Columbia, Kent Allen Holtz, 42, of Kaiser, Mo., Chadwick James Schlicht, 43, of Osage Beach, Mo., Charles Sterling Austin, Jr., 61, of St. Charles, Mo., Scott Wesley Hanson, 47, of Versailles, Mo., Thomas Lee McCormack, 28, of Jefferson City, Mo., and four businesses – Dynamic Scents, LLC, and Order Refill, LLC, Columbia business owned by Matthew and Patrick Hawkins, Carmichael and McMillin, Puff N Stuff, a retail business in Eldon, Mo., and Mozark Products, LLC, in Jefferson City – were charged in a six-count indictment returned under seal by a federal grand jury in Jefferson City on Oct. 2, 2013. The indictment was unsealed on Oct. 10, 2013, upon the arrests and initial court appearances of several defendants.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute a controlled substance analogue, also known as synthetic marijuana or K2, between Dec. 7, 2011, and Oct. 2, 2013. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
The indictment also charges McMillin, Matthew Hawkins, Patrick Hawkins, Carmichael, Austin, Dynamic Scents, Order Refill, Puff N Snuff and Mozark Products with participating in a money-laundering conspiracy from Dec. 7, 2011, to Oct. 2, 2013. According to the indictment, they conspired to engage in financial transactions that involved the proceeds of the drug-trafficking conspiracy.
In addition to the two conspiracies, the indictment charges McMillin with one count of distributing a controlled substance analogue and one count of possessing a controlled substance analogue with the intent to distribute. Hanson and McCormack are also each charged with one count of possessing a controlled substance analogue with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged conspiracies, or used to facilitate the alleged conspiracies, including $423,327 seized from Puff N Suff’s bank account, $177,398 seized from Order Refill’s bank account, $14,215 seized from Mozark Products’ bank account, $82,149 seized from McMillin, $55,175 seized from Hanson and a 2004 Hummer H2 seized from Hanson.
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 Steven R. Berry. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Department of Homeland Security, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department and the Camdenton, Mo., Police Department.
Columbia Business Operators Indicted in $2 Million Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner and operators of Bocomo Bay, a Columbia, Mo., retail business, have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than $2 million of synthetic marijuana, commonly referred to as K2.
Kevin E. Bay, 44, and John Hawkins, 61, both residents of Columbia, were charged in a 21-count indictment returned under seal by a federal grand jury on Oct. 2, 2013. Bay is the owner of Bocomo Bay; Bay and Hawkins operate the business together. The indictment was unsealed and made public today following the initial court appearances of Bay and Hawkins, who self-surrendered to federal authorities this morning and were released on bond.
The federal indictment alleges that Bay and Hawkins participated in a conspiracy to distribute controlled substance analogues, also known as synthetic marijuana or K2, from March 1, 2011, to Oct. 2, 2013. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
The indictment also alleges that Bay and Hawkins participated in a conspiracy to distribute drug paraphernalia from Nov. 1, 2008, to Oct. 2, 2013. Bay is also charged with participating in a money-laundering conspiracy from March 1, 2011, to Oct. 2, 2013. The indictment alleges that Bay conducted financial transactions that involved the proceeds of the illegal drug-trafficking conspiracy. Bay is also charged with seven counts of money laundering.
In addition to the conspiracies, Bay and Hawkins are charged together in four counts of distributing a controlled substance analogue, one count of possessing a controlled substance analogue with the intent to distribute and five counts of distributing drug paraphernalia.
Hawkins is also charged with one count of being a felon in possession of firearms. The indictment alleges that Hawkins, who has previously been convicted of a felony, was in possession of a Taurus 9mm pistol and a Taurus .22-caliber revolver on Aug. 29, 2011.
The federal indictment also contains forfeiture allegations, which would require Bay and Hawkins to forfeit to the government $2,068,686 (obtained from the drug-trafficking and drug paraphernalia conspiracies) as well as items that were seized by law enforcement officers from Bocomo Bay and from the residence shared by Bay and Hawkins: $638,202, four one-ounce platinum bars, five one-ounce palladium bars, five one-ounce gold bars, a ¼-ounce gold bar, a 10-ounce gold bar, 33 silver bars of various weights (up to 100 ounces), a counterfeit Rolex watch, 10 pieces of miscellaneous jewelry, 2,039 miscellaneous gold and silver coins, 76 firearms (including an Uzi submachine gun, handguns, rifles and shotguns) and miscellaneous ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the Drug Enforcement Administration.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.Former Grandview Woman Pleads Guilty to $158,000 Scheme for False Tax RefundsRead the Press Release
October 1, 2013KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Grandview, Mo., woman pleaded guilty in federal court today to filing a false claim for a federal tax refund as part of a nearly $158,000 scheme.
Kelsey R. Jones, 34, of Houston, Texas (formerly of Grandview), pleaded guilty before U.S. District Judge Greg Kays to making a false claim.
By pleading guilty today, Jones admitted that she filed 36 false individual income tax returns on behalf of herself and others, claiming approximately $157,998 in refunds, from February 2009 to January 2011.
Jones recruited individuals to file federal income tax returns under their own names. Jones created false and fictitious inflated income and revenue information for the individuals. Jones then used the false information to prepare and file fraudulent federal tax returns electronically with the IRS, which often claimed tax credits, such as the earned income tax credit, to which the individuals were not entitled.
Jones often had a portion of the fraudulent refunds – totaling $17,292 – direct deposited into one of her bank accounts, sometimes without the taxpayers’ knowledge.
Under federal statutes, Jones 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 Jess Michaelsen. It was investigated by IRS-Criminal Investigation.