Western District of Missouri
Press releases recorded for this federal judicial district.
Tulsa Physician Charged with Producing Child Porn; Attempted to Meet Local Minor for SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tulsa, Okla., physician was charged in federal court today with using a minor to produce child pornography.
Shelby Coleman, of Tulsa, was charged with using a minor to produce child pornography in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo. Coleman is a medical doctor and partner of Tulsa Women’s Health Center.
According to an affidavit filed in support of today’s federal criminal complaint, Coleman communicated with a 16-year-old minor in Laclede County, Mo., identified as “N.D.,” via cell phone texts. Coleman and N.D. allegedly sent one another sexually explicit text messages and images. Coleman allegedly sent N.D. a sexually explicit video of himself. During some of the chats with N.D., Coleman allegedly stated that he wanted to drive around in his Porsche 911 with N.D. naked.
When N.D.’s father discovered the text messages, the affidavit says, he contacted the Missouri State Highway Patrol. A state trooper assumed the identity of N.D. for the purpose of the investigation.
On Friday, Sept. 27, 2013, Coleman texted N.D. and made arrangements to meet for sex at a Springfield, Mo., hotel. Coleman arrived at the hotel in his Porsche on Saturday, Sept. 28, 2013 and texted instructions for N.D. to come to his hotel room. Law enforcement officers confronted Coleman in his hotel room and, after questioning by officers, Coleman was arrested.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force and the Missouri State Highway Patrol.
Arkansas Man Sentenced for $257,000 Fraud Scheme, Barred from Entering Walmart StoresRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Smack Over, Ark., man was sentenced in federal court today for a $257,000 fraud scheme that involved switching bar codes on products at Wal-Mart stores then selling the products on eBay.
Carlton D. Newsome, 35, of Smack Over, was sentenced by U.S. District Judge Dean Whipple to 30 months in federal prison without parole. The court also ordered Newsome to pay $257,195 in restitution to Wal-Mart, and barred him from entering any Wal-Mart stores for three years after he is released from prison, while on supervised release.
On March 13, 2013, Newsome pleaded guilty to wire fraud. Newsome purchased embroidery machines from Wal-Mart stores in a dozen states between Dec. 28, 2004, and July 13, 2008. Newsome switched the bar codes from less expensive embroidery machines; for example, putting a bar code from a $78 machine on a $397 machine so that he could purchase the machine at the lower price. Newsome then sold the machines through eBay for several hundred dollars apiece.
This case was prosecuted by Assistant U.S. Attorneys William L. Meiners and Jess Michaelsen. It was investigated by the U.S. Secret Service and the Overland Park, Kan., Police Department.
Six Indicted for Arson, Insurance Fraud Scheme, Independence Couple also Charged with Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six individuals have been indicted by a federal grand jury for their roles in an arson and insurance fraud conspiracy. One of the conspirators has also been indicted separately, along with his wife, in a conspiracy to illegally possess firearms.
USA v. Stamps, et al
Joshua Stamps, 26, of Independence, Mo., his mother, Randy Stamps, 55, John Stanley Wayne, 30, Michael Smith, 26, and Luis Esquivel, 48, all of Kansas City, Mo., and Roy Richard, 32, of Wichita, Kan., were charged in a 19-count indictment returned under seal by a federal grand jury on Wednesday, Sept. 25, 2013. That indictment was unsealed and made public today upon the arrests and initial court appearances of several defendants.
The federal indictment alleges Joshua Stamps led an arson and insurance fraud conspiracy between 2007 and 2013 in which he bought houses, insured them for more than they were worth, had them burned and made insurance claims on the burned houses. Stamps and his co-conspirators allegedly bought, insured, and burned five houses in Kansas City, Mo. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was almost $1.2 million.
According to the indictment, Stamps bought houses costing from $6,500 to $15,000, using Randy Stamps and Smith as straw owners for three of the houses. Other co-conspirators helped commit the arsons and/or acted as tenants so the properties could be classified as rentals. Stamps and his co-conspirators then insured the houses for much more than the purchase price, the indictment says, in amounts from $88,000 to $307,000. Stamps and his co-conspirators allegedly made false statements on the insurance applications, claiming that the houses were rented and/or occupied, that there were valuable contents in the houses, and that the houses had been renovated. Stamps, Wayne, and other co-conspirators allegedly set fire to the houses. The listed owner of the house that burned would then claim a total loss with the applicable insurance company and would falsely claim they had no knowledge of, or involvement in, the fire.
In addition to the conspiracy, Joshua Stamps is charged with five counts of using fire to commit a federal crime, four counts of arson, four counts of mail fraud, one count of wire fraud and three counts of money laundering.
John Wayne is also charged with Joshua Stamps in two counts of using fire to commit a federal crime and two counts of arson. According to the indictment, Wayne’s pants were on fire as he ran from the arson at 4901 Agnes, so he took them off and left them in the street. Michael Smith is also charged with Joshua Stamps in one count of mail fraud and one count of wire fraud.
Richard is also charged with wire fraud. Randy Stamps is also charged with mail fraud. Luis Esquivel is also charged with wire fraud.
USA v. Stamps, Loyd
Joshua Stamps and his wife, Candice Loyd, 28, were charged in a separate and unrelated three-count indictment that was also returned under seal by a federal grand jury on Wednesday, Sept. 25, 2013.
The federal indictment alleges that Stamps and Loyd, who were not married at the time, participated in a conspiracy to illegally possess two firearms from June 2, 2008, to April 9,2013. The purpose of the conspiracy was for Loyd to obtain firearms for Stamps, who could not legally own firearms due to his felony conviction.
The indictment alleges that Loyd bought a Taurus 9mm pistol on June 2, 2008. When Kansas City police officers executed a search warrant at the residence of Stamps and Loyd, the indictment says, they found the Taurus 9mm pistol as well as a Ruger .40-caliber pistol inside a safe in the children’s bedroom. Loyd initially claimed to be the owner of the firearms, according to the indictment. Loyd did not have a combination to the safe, the indictment says, and eventually told police that Stamps had access to the safe and the combination to the safe. When officers forced the safe open, they recovered the two firearms and ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In addition to the conspiracy, Stamps and Loyd are each charged in two counts of the indictment with aiding and abetting each other for Stamps, who has a prior felony conviction, to possess a firearm.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. They were investigated by the Kansas City, Mo., Police Department.Columbia Man Sentenced to Life in Prison for Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for two bank robberies in Columbia.
Eddie Prince Roberts, 40, of Columbia, was sentenced by U.S. District Judge Nanette K. Laughrey to life in federal prison without parole. The court also ordered Roberts to pay $4,468 in restitution.
On Dec. 6, 2012, Roberts was found guilty at trial of two counts of bank robbery. Roberts has prior convictions for six earlier bank robberies.
Evidence introduced during the trial indicated that Roberts stole $8,260 from Landmark Bank in Columbia on May 8, 2012. During the robbery, Roberts – who had both hands in his pockets – threatened to shoot a bank employee and ordered the employee to take him to the vault. When the employee was unable to open the vault, Roberts began punching him in the face. Roberts then ran to another teller, jumped onto the counter, and took all the money she had. As he was leaving the bank, a customer tried to stop him and Roberts punched him in the face.
Roberts’s truck was found a short time later, stuck by the river after attempting to elude the police. Officers pursued on foot; Roberts resisted arrest and fought with one of the officers. During the struggle, the officer’s firearm was discharged and Roberts was wounded.
Evidence also indicated that Roberts stole $4,468 from Boone County National Bank in Columbia on April 23, 2012. During that robbery, Roberts ordered a teller to give him all of the money in her drawer. Roberts jumped on the counter and rifled through the teller drawers, putting money into a black trash bag. Surveillance video from nearby businesses captured images of Roberts leaving the bank in the same black Ram pickup that he used a couple of weeks later to rob Landmark Bank.
Roberts was convicted of bank robbery in Kansas in 1993 and, in a separate case in Kansas in 1993, of four bank robberies. Roberts was also convicted of bank robbery in Missouri in 2000.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Columbia, Mo., Police Department, the Miller County, Mo., Sheriff’s Department, the Cooper County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Boonville, Mo., Police Department.Columbia Man Sentenced to 20 Years for Distributing Heroin Resulting in DeathRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been sentenced in federal court for distributing heroin, which resulted in the death of another Columbia man last year.
Ellison Lee Hutchison, Jr., also known as “Lucky,” 37, of Columbia, was sentenced by U.S. District Judge Beth Phillips on Thursday, Sept. 26, 2013, to 20 years in federal prison without parole. The court also ordered Hutchison to pay $1,699 in restitution for the funeral costs of his victim.
On April 25, 2013, Hutchison pleaded guilty to distributing heroin to Maximillion Shackelford, who died as a result of using that heroin.
Columbia police officers were called to the apartment where Shackelford lived with his mother on Jan. 23, 2012. Shackelford was deceased when officers arrived at his apartment. Officers found two syringes lying with Shackelford on the bed, and two recent injection sites were visible on his right wrist. An autopsy was conducted and the medical examiner declared the cause of death to be an overdose of heroin.
Officers examined Shackelford’s cell phone and learned that he had made arrangements earlier that evening to meet Hutchison. Shackelford’s brother told investigators that Hutchison was a heroin dealer with whom he and the victim had prior dealings. Investigators also interviewed the person who drove Shackelford to the location where the drug transaction occurred.
Columbia police officers and Boone County, Mo., sheriff’s deputies executed a search warrant at Hutchison’s residence on Jan. 25, 2012. Hutchison, who was arrested, was in possession of two cell phones, $3,892 in cash and a small baggie of marijuana. A search of Hutchison’s residence resulted in a number of items being seized, including a surveillance system, an electronic scale, two containers of Dormin (a common cutting agent for heroin), a large number of plastic baggies with the corners removed (consistent with having been used to package drugs) and $17,740 in cash. The electronic scale was later sent to the Missouri State Highway Patrol Crime Lab and found to have residue of heroin, cocaine and THC (the active ingredient in marijuana). Investigators examined the cell phones and found text messages between Shackelford and Hutchison, apparently referencing prior drug deals.
Hutchison was questioned and eventually admitted that he sold Shackelford a quarter gram of heroin for $45.
This case was prosecuted by Special Assistant U.S. Attorney Steven R. Berry, Special Assistant U.S. Attorney Stephanie Morrell (an assistant prosecutor for the Boone County Prosecutor’s office who was appointed for this case) and Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration, the Boone County, Mo., Prosecuting Attorney’s Office, the Boone County, Mo., Sheriff’s Department and the Boone County, Mo., Medical Examiner’s Office.St. Joseph Woman Sentenced to 3.5 Years for Role 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 today that a St. Joseph, Mo., woman was sentenced in federal court to her role 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, which is operated by a contractor for the Missouri Department of Revenue.
Isabel Ramirez Mendoza, 62, of St. Joseph, was sentenced by U.S. District Judge Brian C. Wimes on Thursday, Sep. 26, 2013, to a total of 42 months of imprisonment. The court also ordered Mendoza to pay a $125,000 money judgment to the government. Prior to the sentencing, the defendant 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.
On Feb. 28, 2013, Mendoza pleaded guilty to participating in a conspiracy to unlawfully produce identification documents, to unlawfully transfer the means of identification of another person and to commit Social Security fraud. Mendoza also pleaded guilty to aggravated identity theft.
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 admitted that she assisted well over 100 illegal aliens in fraudulently obtaining Missouri driver’s and non-driver’s licenses from July 2010 until Jan. 10, 2012. Mendoza and others (including family members, such as her minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators.
Mendoza 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. Mendoza also referred illegal aliens to co-conspirators who could assist them in obtaining identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
Mendoza 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.
Mendoza knew the vast majority, if not all, of the illegal aliens she 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, 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. 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. 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 Mendoza on numerous occasions during non-work hours at locations
Mendoza is the first defendant to be sentenced in this case. All of the other defendants in this case have pled guilty and are awaiting sentencing. Hector Juarez Mendoza, Sr., 54, a citizen of Mexico who is a lawful permanent resident of the United States, Pedro Pablo-Solis, 28, a citizen of Guatemala residing in Liberal, Kan., Thomas Richard McNamara III, 26, formerly an employee at the St. Joseph license office, Domingo Ajanel-Castro, 33, a citizen of Guatemala residing in St. Joseph, have 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.
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, 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.Nixa Contractor Pleads Guilty to Stealing $73,000 from Elderly Tornado VictimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nixa, Mo., contractor who was hired to repair tornado damage at the Joplin residence of an elderly couple pleaded guilty in federal court today to a fraud scheme in which he stole more than $73,000.
Terry Alton Parker, 58, of Nixa, pleaded guilty before U.S. Magistrate Judge David P. Rush to bank fraud, wire fraud and money laundering.
Parker operated Alliance Contracting of Nixa, LLC, and was hired by a Joplin, Mo., resident to repair his house following the May 22, 2011, tornado. The victim, identified as “H.B.” in the federal indictment, was 84 years old at the time; he was caring for his 88-year-old wife, who required home care and nursing assistance.
After being hired, Parker was at H.B.’s home on a regular basis from June 2011 through February 2012. Parker befriended H.B. and soon began using his downstairs office area as his own office.
In November 2011, without H.B.’s knowledge or permission, Parker took a check from H.B.’s checkbook and wrote a check to himself for $38,640. Parker forged H.B.’s signature and deposited the check into his own bank account.
Parker persuaded H.B., who did not own a computer, to get Internet access at his home so Parker could order supplies online and conduct other business via the Internet. H.B. agreed to pay for the service. Parker set up an online banking account for H.B.’s checking account, without H.B.’s knowledge or permission, and directed all bank statements and other notifications from the bank to be delivered to an e-mail address that Parker set up in H.B.’s name (also without his knowledge). Parker established a PayPal account, without H.B.’s knowledge or permission, which was linked to H.B.’s checking account.
Parker initiated five wire transfers totaling $34,420 from H.B.’s checking account into the PayPal account from Dec. 31, 2011, to Feb. 22, 2012. Most of those funds ($32,545) were then transferred from H.B.’s PayPal account to Parker’s own PayPal account.
Under federal statutes, Parker is subject to a sentence of up to 70 years in federal prison without parole, plus a fine up to $1,750,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the Joplin, Mo., Police Department.Former Federal Employee Indicted for $113,000 Scheme to Steal from Co-workersRead the Press Release
Septembe 26, 2013KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former IT specialist for the U.S. Department of Agriculture has been indicted by a federal grand jury for a scheme to steal $113,000 from three co-workers, one of whom is blind.
Paula M. Steen, 49, of Overland Park, Kan., was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, Sept. 25, 2013. Steen was employed by the USDA Farm Service Agency at the USDA Beacon Federal Office Facility, 6501 Beacon Drive, Kansas City, Mo.
The federal indictment alleges that Steen engaged in a scheme to steal from her co-workers at USDA over a four-year period, from Dec. 30, 2008, until she resigned under pressure on Dec. 29, 2012. According to the indictment, the scheme resulted in an attempted loss of at least $113,282 and an actual loss of $103,682.
The indictment alleges that Steen charged $57,693 on the credit accounts of one co-worker (identified in the indictment as “S.S.”), who is legally blind. Steen later repaid $18,278 of that amount to creditors. Steen also attempted to borrow $2,600 in the co-worker’s name, the indictment says, but after submitting the personal loan application to a financial institution, she later withdrew it. According to the indictment, Steen also secured four personal loans from this co-worker totaling $48,171, which she did not repay.
The indictment also alleges that Steen illegally transferred $16,096 from another co-worker’s credit union account to her own creditors and to her own bank account. (This co-worker is identified in the indictment as “R.H.”) Steen also attempted to illegally transfer another $2,000, according to the indictment.
The indictment also alleges that Steen attempted to open a joint credit card account in the name of a third co-worker (identified in the indictment as “J.S.”), using his Social Security number and date of birth without his authorization.
The federal indictment charges Steen with two counts of wire fraud and one count of aggravated identity theft.
The indictment also contains a forfeiture allegation, which would require Steen to forfeit $103,682, which represents the actual loss to the victims of her scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Department of Agriculture, Officer of Inspector General.
St. Joseph Police Detective Indicted for Firearm ViolationRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a longtime detective with the St. Joseph, Mo., Police Department was indicted by a federal grand jury today for aiding and abetting another person to illegally possess a firearm that he used in a gang-related shooting.
“A sworn law enforcement has been charged with allowing a known violent criminal to keep his gun, even after it was used in a gang-related shooting,” Dickinson said. “Today’s indictment alleges a reckless violation of the public trust and blatant disregard of his duty to uphold the law.”
Scott Thomas Coates, 42, of St. Joseph, was charged in an indictment returned by a federal grand jury in Kansas City, Mo.
According to the indictment, Coates (in his official capacity as a police detective) interviewed Corey Andrew Barr on Oct. 24, 2007, about a recent gang-related shooting near 22nd and Messanie in St. Joseph. Barr admitted that he had brandished a Smith and Wesson .40-caliber handgun and fired four or five shots at other persons during the shootout. Barr brought the handgun with him to his interview with Coates, the indictment says, who merely photographed the gun and allowed Barr to leave with the handgun at the end of the interview.
Coates permitted Barr to leave with the handgun and to continue to possess the handgun, the indictment says, despite the fact that he knew Barr was prohibited by federal law from possessing a firearm due to his 2005 conviction for domestic violence.
Coates was ordered by a superior officer to locate Barr and seize the handgun, which he did on the same day. However, the indictment says, Coates did not book the firearm into evidence until July 7, 2009, more than 20 months later.
On Sept. 1, 2010, Coates allegedly caused the handgun to be returned to Barr, despite the fact that Barr was still prohibited by federal law from possessing any firearm. By that time, Barr had a second conviction for domestic violence. This alleged conduct by Coates forms the basis of today’s federal indictment for aiding and abetting the possession of a firearm by a prohibited person.
Barr was arrested on Sept. 7, 2010, when St. Joseph police officers responded to a disturbance call involving people with firearms, including assault rifles. A witness told officers that one of the men involved in the disturbance was walking through a nearby park. Officers located Barr in the park; he was carrying the loaded handgun in a holster on his waist. Barr was indicted by a federal grand jury for illegally possessing a firearm. After pleading guilty, Barr was sentenced to 47 months in federal prison.
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 Deputy U.S. Attorney Gene Porter. It was investigated by the FBI, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the cooperation of officers from the St. Joseph, Mo., Police Department.Guatemalan National Pleads Guilty to ID Theft; more than 100 Illegal Aliens used False ID Scheme to Obtain LicensesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Guatemalan national pleaded guilty in federal court today to aggravated identity theft in connection to a conspiracy to provide false identity documents so that more than 100 illegal immigrants could fraudulently obtain driver’s and non-driver’s licenses from the license office in St. Joseph, which is operated by a contractor for the Missouri Department of Revenue.
Pedro Pablo-Solis, 28, a citizen of Guatemala residing in Liberal, Kan., pleaded guilty before U.S. District Judge Brian C. Wimes to aggravated identity theft.
Illegal aliens traveled across the United States to obtain licenses at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that well over 100 Missouri licenses were unlawfully issued to illegal aliens as part of this conspiracy from July 1, 2010, to Jan. 10, 2012.
Pablo-Solis’s role in the conspiracy was to obtain genuine Social Security cards and birth certificates that were later used by illegal aliens to fraudulently obtain Missouri identification documents. Pablo-Solis, who is illegally present in the United States, provided co-defendant Domingo Ajanel-Castro, 33, a citizen of Guatemala residing in St. Joseph, with identification documents for a specific age range for either a male or a female that corresponded with the illegal alien who was purchasing the document set.
Pablo-Solis is the fifth and final co-defendant to plead guilty in this case. Thomas Richard McNamara III, 26, formerly an employee at the St. Joseph license office, Hector Juarez Mendoza, Sr., 54, a citizen of Mexico who is a lawful permanent resident of the United States, and his wife, Isabel Ramirez Mendoza, 62, and Ajanel-Castro, all of St. Joseph, have pleaded guilty to their roles in a conspiracy to unlawfully produce identification documents, unlawfully transfer the means of identification of another person and commit Social Security fraud and to aggravated identity theft. Ajanel-Castro also pleaded guilty to possessing false or fraudulently obtained identification documents.
The Mendozas and others (including family members, such as her minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators. They charged a fee, typically $100, for assisting the illegal aliens to obtain a Missouri driver’s or non-driver’s license that was in the name of another person who was listed on unlawfully obtained birth certificates and Social Security cards.
The Mendozas also referred illegal aliens to co-conspirators who could assist them in obtaining identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
The Mendozas assisted illegal aliens in preparing for potential questions from the license office employees, such as learning the names on the birth certificates, the names of the parents on the birth certificates, the dates of birth, and the Social Security numbers.
Sometime between June 22, 2009, and Nov. 2, 2011, Isabel Mendoza approached McNamara and asked him to accept identification documents he was not supposed to accept and issue Missouri driver’s or non-driver’s licenses to individuals who were escorted by her and others. In exchange, she offered to pay McNamara a fee of approximately $50 to $100 for each time he issued a license he was not supposed to issue due to the inadequate documentation of their true identity.
McNamara admitted that he accepted improper documents approximately two to three times a week, but he didn’t do this every week. Mendoza often called Isabel McNamara before bringing aliens to the license office to make sure he would be working and to let him know they were bringing in clients. McNamara then met with Isabel Mendoza on numerous occasions during non-work hours at locations other than the licensing office to receive payment.
According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to obtain licenses.
Pablo-Solis is subject to a mandatory sentence of two years in federal prison without parole, plus a fine up to $250,000. Under the terms of today’s plea agreement, Mendoza must forfeit $125,000 to the government. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, and the U.S. Postal Inspection Service.
Liberal Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberal, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Timothy Curless, 53, of Liberal, pleaded guilty before U.S. Magistrate Judge David P. Rush to receiving and distributing child pornography over the Internet between Nov. 4, 2012 and April 19, 2013.
According to court documents, a law enforcement officer was conducting an undercover investigation into the distribution of child pornography by suspect(s) using file-sharing software. On two separate occasions the officer downloaded images of child pornography from Curless’s computer. Among those images were children who have not reached puberty and a child as young as three years of age. When officers executed a search warrant they learned that Curless had been using his neighbor’s wi-fi network in order to access the Internet.
Under federal statutes, Curless is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."KC Man Stops Trial, Pleads Guilty to Illegal Firearm, Faces at Least 15 Years in PrisonRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man stopped his trial and pleaded guilty in federal court today to illegally possessing a firearm.
Dennis T. Hart, 55, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to being a felon in possession of a firearm. Today would have been the second day of Hart’s criminal jury trial on an April 23, 2013, federal indictment.
By pleading guilty today, Hart admitted that he was in possession of a Lorcin .380-caliber semi-automatic pistol on April 7, 2013. According to court documents, Kansas City police officers were dispatched to 29th and Prospect on a disturbance call at about 12:56 p.m. on that day. A man told police that Hart began yelling at him and punched him in the face. Hart then pulled up his sweater, revealing a pistol tucked in his waistband. The man, who was sitting in a vehicle, left and called the police.
Police officers located Hart a few blocks away. As officers approached Hart he began walking away and then started jogging away from the officers. Once the officers were able to catch up to Hart, they grabbed him and began placing him on the ground. As they were struggling, Hart leaned toward his left side and reached his right hand into his waistband. Hart pulled the loaded pistol from his waistband and raised his arm to chest level before falling to the ground, causing him to drop the pistol. Hart was then placed into handcuffs and taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to possess any firearm or ammunition. Hart has three prior felony convictions for possessing a controlled substance, two prior felony convictions for distributing a controlled substance, two prior felony convictions for assault, two prior felony convictions for forgery and prior felony convictions for tampering and fraud.
Under federal statutes, Hart is subject to a mandatory minimum sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Shalanda Smith. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Cattle Ranch Owner Pleads Guilty to $150,000 Social Security Disability FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Leeton, Mo., man has pleaded guilty in federal court to receiving nearly $150,000 in federal disability benefits while he owned and operated a cattle ranch.
Allan Dalton, 55, of Leeton, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan on Monday, Sept. 16, 2013, to a federal information that charges him with theft of government money.
According to the plea agreement, Dalton concealed his work activity from the Social Security Administration as part of a scheme to fraudulently obtain a total of $147,070 in disability payments.
Dalton applied for disability benefits in October 1999 and was determined in August 2000 to be medically disabled and unable to work due to rotator cuff injuries.
Dalton began operating his cattle ranch as early as 1999. Based on the information SSA discovered during its investigation, by June 2004, Dalton’s work activity at the ranch was substantial and precluded him from receiving Social Security disability payments. Between June 2004 and June 2011, Dalton took out numerous loans for his cattle operation. For example, in October 2007, Dalton paid over $100,000 for cattle, and in March 2008, he paid over $70,000 for cattle. Loan documents from this time period showed that Dalton owned significant assets, including livestock, land and farm equipment. Today, Dalton admitted that he willfully failed to timely disclose his work activity at his ranch to SSA because he wanted to continue to receive Title II disability payments that he was not entitled to receive.
In addition to the disability payments, Dalton fraudulently obtained a $250 economic stimulus payment under the American Recovery and Reinvestment Act of 2009. This payment was made contingent on Dalton’s eligibility to receive Social Security disability payments. Pursuant to the plea agreement, Dalton agreed that he caused a loss to the government totaling $147,320.
Under federal statutes, Dalton 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 Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration – Office of Inspector General.Jasper County Man Charged with Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jasper County, Mo., man who sexually exploited children whom he contacted on Facebook has been charged in federal court with producing child pornography.
Ian Holman, 32, of Jasper County, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Thursday, Sept. 12, 2013.
According to an affidavit filed in support of the federal criminal complaint, law enforcement authorities received reports from two child victims, identified as 14-year-old Jane Doe #1 in Webb City, Mo., and 13-year-old Jane Doe #2 in Carthage, Mo., after Holman contacted them via Facebook.
Holman, using the screen name “Lucky Holman,” allegedly offered to pay Jane Doe #2 $75,000 to $100,000 in exchange for various sexual acts. He also asked her to send him sexually explicit pictures of herself, which she did.
Holman allegedly contacted Jane Doe #1 last month and offered to pay her $65,000. She knew several 12-to-14-year-old girls whom Holman had listed as friends on his Facebook page, the affidavit says, but Jane Doe #1 did not know him and ended the conversation. She reported the contact to her father, who notified the police.
On Wednesday, Sept. 11, 2013, after receiving the report from Jane Doe #2, a sheriff’s deputy was dispatched to Holman’s residence. Holman attempted to elude the deputy by running out the back of the house and into the woods. The deputy, along with two other officers and a K9 unit, pursued Holman into the woods. The officers searched for Holman for approximately 45 minutes. The deputy was able to contact Holman by phone and persuade him to turn himself in.
According to the affidavit, Holman told law enforcement that he friended numerous 12-to-14-year-old girls in the Carthage and Webb City area and used Facebook instant messaging to contact the girls.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and Homeland Security Investigations.
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 Bank Branch Manager Pleads Guilty to Bank Fraud, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former bank branch manager has pleaded guilty in federal court to stealing more than $316,000 from several elderly customers’ accounts and failing to report the embezzled income on her taxes.
Jennifer A. Gunter, 33, of Republic, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Sept. 12, 2013, to bank fraud and filing a false tax return.
Gunter was the branch manager at the Guaranty Bank at 291 Highway CC in Nixa, Mo., (and earlier at the Guaranty Bank at 1341 W. Battlefield, Springfield, Mo.) from August 2005 until her termination in November 2012. Gunter admitted that, from December 2006 until November 2012, she repeatedly accessed the bank accounts of four elderly bank customers. Gunter fraudulently embezzled a total of $316,598 from those accounts.
Gunter submitted transaction tickets, withdrawal slips, and cashier’s checks on which she forged the names of the account holders in order to withdraw money from the bank accounts. She used the money for personal matters and expenses. Gunter set the customer accounts to “do not mail” status in order to keep the customers from receiving their bank statements and detecting the theft from their bank accounts.
Gunter failed to report this embezzled income on her Form 1040, U.S. Individual Income Tax Return. Gunter did not report the additional income of $45,002 for 2009, $70,481 for 2010, $107,119 for 2011, and $35,000 for 2012. Gunter’s actions resulted in an additional tax due and owing of $7,642 in 2009, $13,305 in 2010, $22,935 in 2011, and $6,258 in 2012. The total tax loss is $50,140.
Under federal statutes Gunter is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1.1 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 U.S. Secret Service, FDIC – Office of Inspector General, IRS-Criminal Investigation and the Christian County, Mo., Sheriff’s Department.
Three More Defendants Sentenced in Sadomasochistic Sex Trafficking ConspiracyRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three more defendants were sentenced in federal court today for their roles in the sex trafficking of a young woman who was coerced into being a sex slave for several years while she was tortured in a trailer home located in a wooded area in Lebanon.
Michael Stokes, also known as “The Rodent,” 65, of Lebanon, Mo., and James Noel, 47, of Springfield, Mo., were each sentenced to five years in federal prison without parole in separate hearings before U.S. District Judge Dean Whipple. Marilyn Bagley, 48, of Lebanon, was sentenced to five years of probation.
The court also ordered that $738,250 in total restitution must be paid to the victim. Each defendant is individually liable for $123,041, or one-sixth of the total amount.
On Dec. 6, 2012, Marilyn Bagley pleaded guilty to her role in the conspiracy to commit sex trafficking by force, fraud or coercion. Marilyn Bagley admittedly knew that other individuals came to the residence to engage in sexual conduct and sadistic acts on the female victim (identified in court documents as FV). Over a six-year period, FV endured sadistic acts of torture, many of which were photographed and videotaped. FV would be punished if she did not do as instructed. Several individuals provided bondage pornography, meat, cigarettes, and cash, among other items, in exchange for the sessions involving sexual conduct and sadistic acts on FV.
The government stated in court at the time of her guilty plea that Marilyn Bagley is considered in a separate category from the other defendants in this case because she was a victim of extensive physical and emotional abuse by her husband, co-defendant Edward Bagley, Sr., also known as “Master Ed,” 46, for over 25 years prior to her criminal conduct and participation in the conspiracy. Her participation in the criminal conduct resulted in the abuse being redirected away from her and to the victim.
Stokes pleaded guilty on Jan. 5, 2012, to participating in the sex trafficking conspiracy. Stokes became familiar with FV in 2006 when he received pictures of her over the Internet in which she was naked with whip marks over her body. Stokes was told that the victim was a slave for “life” who was tortured for hours at a time and was required to do “everything and anything” she was told. After a few weeks of chatting online, Edward Bagley brought the victim to Stokes’ house so she could do a “demo” for him. When they arrived at Stokes’ residence, bringing a duffle bag of torture devices with them, FV was instructed to “put on a show for us.” FV was naked, wearing only dog collars and ankle collars with locks. Stokes was asked whether he wanted to have sex with her. Stokes said “yes” and he had sex with FV.
Stokes was stunned that “someone had that much control over someone” and “had never seen anything like it.”
Stokes began visiting the Bagley residence where FV was being held. During his first visit, he was shown a photo of FV’s vaginal opening sewn shut and told this was done to demonstrate “what was expected of her.” FV was present for these statements and remained silent. FV never talked back or spoke up. FV never offered herself to Stokes and only acted on command.
Stokes visited the Bagley residence eight to 12 times. During these visits, he would receive sexual acts or be allowed to watch or participate in torturing FV. When he visited he brought steaks, hamburgers, jackets, personalized playing cards, lighters, cigarettes, and cash. Among other things, he witnessed FV being tortured with a crank phone, with electricity shot through devices clamped to her vaginal and anal openings.
Stokes helped promote FV at the strip clubs. Stokes took photos of FV around to the clubs to promote her there. Stokes gave $1,000 so that FV could be taken for a sexual bondage photo shoot in California for Taboo magazine. Stokes then took a copy of the magazine to promote her at the clubs. The photos in Taboo magazine were extremely mild and did not depict any of the cruel sessions Stokes had witnessed at the residence.
In 2009, Stokes was warned that there was an FBI investigation involving his conduct with FV. Stokes went on his computer and deleted hundreds of photos, his contacts with other females online, pictures of FV that he saved, and destroyed his copies of Taboo magazine and the sexual devices that he had acquired.Noel pleaded guilty on Feb. 24, 2011, to participating in the sex trafficking conspiracy. Noel admitted that he was one of the customers who sexually abused and tortured FV. Noel watched the victim being tortured and sometimes operated torture devices himself beginning in 2006, when she was approximately 20 years old. For example, Noel knew that FV hated being electrocuted with a crank phone (which was wired inside FV=s vaginal and anal openings and to her toes), which he described as Aextremely painful,@ but he used it on her anyway.
Three defendants in this case were sentenced on Wednesday, Sept. 11, 2013.
Edward Bagley and Bradley Cook, also known as APutHer2GoodUse,@ 34, of Kirkwood, Mo., were each sentenced to 20 years in federal prison without parole. Dennis Henry, 53, of Wheatland, Mo., was sentenced to 10 years in federal prison without parole. As part of the agreement obtained by the government, Cook was required to pay $123,041 in restitution at the time of his sentencing. Edward Bagley and Henry are individually liable for $123,041 in restitution. Their wages will be garnished while in custody, and after they are released, until they have paid their restitution in full.
Following their prison terms, Bagley, Cook and Henry will be on supervised release for the rest of their lives. Among the terms of supervision ordered by the court, they must adhere to a 10:30 p.m. curfew and are prohibited from any contact with the victim, the government’s attorneys and the agents involved in the case.
This case marked the first time nationwide that the customers, or “Johns,” have been convicted under the Trafficking Victims Protection Act in a sex trafficking case in which the victim was an adult. This is also the first human trafficking conviction in which the customers were prosecuted in a case that involved an actual victim rather than an undercover sting operation.
On Jan. 15, 2013, Bagley pleaded guilty to enticing a minor into illegal sexual conduct and prostitution. Bagley met FV in 2002, when she was 16 years old and dating his teenage son. FV visited his trailer residence in Lebanon on numerous occasions. During FV’s visits to Bagley’s residence, he showed her images and videos of pornography on the Internet and downloaded from the Internet, including images and videos of bondage and sadomasochistic conduct. Bagley admitted that he provided FV with controlled substances. He taught her about bondage and sadomasochistic activities. His wife, co-defendant Marilyn Bagley, 48, modeled stripper and bondage clothing for FV. The Bagleys told FV that she would love being a “slave” for him. Bagley began a sexual relationship with FV prior to her seventeenth birthday.
FV viewed Edward Bagley as her boyfriend and moved into the Bagleys’ residence in 2003. They provided FV her own room and clothes, and promised her a great life.
Over the course of the next six years, Edward Bagley executed sadistic acts of torture on FV, including sewing her vagina closed, whipping and flogging her body, penetrating her breasts with needles and skewers, suffocating her with plastic bags, strangling her with rope, locking her in a dog cage, and electrocuting FV’s sexual organs with devices which produced electrical voltage. Edward Bagley photographed and videotaped many of the acts he performed on her. FV would be punished if she did not do as instructed.
Cook pleaded guilty on Dec. 20, 2011, to participating in a conspiracy to commit sex trafficking by force, fraud or coercion. From 2006 to 2009, Cook watched the victim being sexually abused and tortured in live online sessions and as depicted in photos and videos that he downloaded from the Internet. Cook admitted that he traveled to Lebanon on multiple occasions during that time to engage in sessions of sexual acts and torture with the victim. In exchange, Cook paid the victim=s Amaster@ for these sessions with such items as computer hard drives that contained images and videos of bondage, domination, sadism and masochism, which he had downloaded from the Internet.
Cook also admitted he was aware of other men who engaged in sexual acts and torture with the victim. He witnessed the victim being whipped and locked in a dog cage, as well as being tied up and shocked with multiple electrical devices. Cook described the abuse suffered by the victim as the Amost extreme@ he had ever seen.
Henry, formerly the postmaster of Nevada, Mo., pleaded guilty on March 24, 2011, to participating in the conspiracy. Henry also pleaded guilty to transporting the victim across state lines for sexual activity.
Henry admitted that he engaged in sex with the victim, and participated in torture sessions with FV that would last for hours. Henry saw pictures of FV=s vagina sewn shut, which he was told was a form of punishment. Henry also admitted that he visited FV at a Lebanon strip club where she was forced to work.
This case was prosecuted by Assistant U.S. Attorneys Cynthia L. Cordes, Paul Becker and John Cowles with assistance from the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
St. Joseph Women Sentenced for $5 Million Conspiracy to Provide Thousands of Identity Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Joseph, Mo., women along with four co-defendants, have been sentenced in federal court for their roles in a more than $5 million conspiracy that utilized the Missouri Department of Revenue license office in St. Joseph to provide more than 3,500 fraudulent identity documents to illegal aliens across the United States.
Sherri E. Gutierrez, 46, of St. Joseph, and Brenda De La Cruz, 33, of San Antonio, Texas, were sentenced on Wednesday, Sept. 11, 2013, in separate hearings before U.S. District Judge Gary A. Fenner. Gutierrez was sentenced to five years and five months in federal prison without parole. De La Cruz was sentenced to four years in federal prison without parole. Gutierrez’s daughter, Shayna R Vanvacter, 27, of St. Joseph, was sentenced on Tuesday, Sept. 10, 2013, to two years in federal prison without parole.
Three additional co-defendants were also sentenced on Tuesday, Sept 10, 2013. Elder Enrique Ordonez-Chanas, also known as “Flaco,” 32, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to five years and one month in federal prison without parole. Luis Adalberto Felipe-Lopez, 30, a citizen of Guatemala who was unlawfully in the United States and resided in Mt. Olive, N.C., was sentenced to four years in federal prison without parole. Rafael Hernandez-Ortiz, also known as “Hugo,” 32, a citizen of Mexico who was unlawfully present in the United States and resided in Owatonna, Minn., was sentenced to two years in federal prison without parole.
It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. Conspirators helped illegal aliens obtain birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office. The state licenses could then be used by the illegal aliens to remain unlawfully in the United States, to unlawfully obtain employment and for other unlawful purposes.
The illegal aliens were usually charged between $1,500 and $1,600 for the document sets and the Missouri driver’s and non-driver’s licenses. It is estimated that more than $5,250,000 in gross proceeds was paid by illegal aliens to members of this conspiracy.
Sixteen defendants have been sentenced and two defendants have pleaded guilty and await sentencing.
Gutierrez pleaded guilty on April 10, 2013 to being a leader or manager of the conspiracy to transport illegal aliens, to unlawfully produce identification documents, to unlawfully transfer another person’s identification and to commit Social Security fraud from November 2009 to January 2012. She also pleaded guilty to aggravated identity theft. De La Cruz also pleaded guilty to her role in the conspiracy and to aggravated identity theft.
Gutierrez’s sister, Deborah J. Flores, 47, was sentenced on June 26, 2013, to three years and four months in federal prison without parole. On Oct. 18, 2012 Flores pleaded guilty to her role in the conspiracy and to aggravated identity theft.
Flores’s children, Jessica M. Gonzalez, 22, Sara M. Gonzalez, 21, Christina Michelle Gonzalez, 24, and Stephen E. Vanvacter, 25, along with co-defendant Christopher B. Escobar, 23, all of St. Joseph, have also pleaded guilty to their roles in the conspiracy.
Gutierrez, Shayna Vanvacter, Flores, her children and Escobar all admitted that they accompanied illegal aliens to the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. They also admitted that they instructed and assisted the illegal aliens to practice memorizing the information on the birth certificates and Social Security cards and to practice signing the name on those documents so that the signatures would be similar. They also assisted the illegal aliens to prepare for potential questions from the license office employees. They also assisted the illegal aliens who did not live in Missouri by providing them with a Missouri residential address to use in order to obtain the Missouri driver’s or non-driver’s license.
Christina Gonzalez was sentenced to 32 months in federal prison without parole and ordered to pay $150,000 in restitution. Sara Gonzalez was sentenced to 15 months in federal prison without parole. Jessica Gonzalez was sentenced to three years of probation. Stephen Vanvacter was sentenced to five years of probation.
Ordonez-Chanas pleaded guilty on April 8, 2013 to his role in the conspiracy and to aggravated identity theft. Ordonez-Chanas was an organizer and leader of the conspiracy. Ordonez-Chanas admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. Ordonez-Chanas requested document sets (of a specific age range for either a male or a female that corresponded with the illegal alien who was the customer) from co-defendants De la Cruz and Julio Cesar Llanas-Rodriguez, 38, and Martin Alejandro Llanas-Rodriguez, both of San Antonio, Texas. Ordonez-Chanas then mailed the documents sets to Gutierrez and others.
Felipe-Lopez pleaded guilty to his role in the conspiracy and to aggravated identity theft. Felipe-Lopez admitted that he transported illegal aliens between St. Joseph and North Carolina. Felipe-Lopez admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office.
Hernandez-Ortiz pleaded guilty to his role in the conspiracy on April 29, 2013. Hernandez-Ortiz admitted that he transported illegal aliens from Minnesota to the St. Joseph license office.
Julio and Martin Llanas-Rodriguez were each sentenced to five years and one month in federal prison without parole. They both pleaded guilty to participating in the conspiracy and to aggravated identity theft. Along with De La Cruz, their roles in the conspiracy were to obtain state-issued birth certificates, usually from the state of Texas, which they purchased from willing individuals. They also obtained Social Security cards in the names of the individuals on the birth certificates, so they would have a matching document set. They mailed the documents to Gutierrez and others.
Nelson Dariseo Bautista-Orozco, 27, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to three years and six months in federal prison without parole.
Ranfe Adaias Hernandez-Flores, also known as “Miguel,” 24, also a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to two years in federal prison without parole.
Jon L. Grippando, 25, of Atkins, Ark., was sentenced to eight months in federal prison without parole.
Melissa L. Scallions, 27, of Hazelwood, Mo., has pleaded guilty to her role in the conspiracy. She admitted that she also accompanied illegal aliens into the St. Joseph license office, under the guise of being a translator, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. Scallions and Escobar await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service and the Department of State’s Diplomatic Security Service.Catholic Priest Sentenced to 50 Years for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Roman Catholic priest was sentenced in federal court today for producing child pornography.
“This sexual predator victimized five young children over a period of almost six years,” Dickinson said. “He violated his religious vows, betrayed the trust of his parishioners and shocked the entire community. He deserves to spend the rest of his life in prison for his deliberate, planned and chronic child sexual abuse. Today’s sentence of 50 years without parole, a virtual life sentence, is a just outcome to protect our children and our community from this predator priest.”
Shawn Ratigan, 47, of Independence, Mo., a diocesan priest and former pastor or assistant pastor in several area parishes, was sentenced by U.S. District Judge Gary A. Fenner to 50 years in federal prison without parole. Ratigan was the parish pastor at St. Patrick’s Catholic Church in Kansas City, Mo., and worked at St. Mary’s Church in St. Joseph, Mo., and St. Joseph’s Church in Easton, Mo. More recently, he served as chaplain to the Franciscan Sisters of the Holy Eucharist in Independence.
On Aug. 2, 2012, Ratigan pleaded guilty to four counts of producing child pornography and one count of attempting to produce child pornography. Each of those counts involved the sexual exploitation of a separate child victim. Ratigan admitted that he exploited five child victims to produce sexually explicit pictures of them. The victims ranged in age from two years old to 12 years old at the time of the offenses.
The exploitation occurred at several locations over a six-year period of time. Ratigan, at the time a Catholic priest, carried out some of these victimizations in and around a church. Others he carried out in trusted environments under the noses of the victims’ parents.
Victim Jane Doe #1
Ratigan admitted that he exploited a 6-year-old child, identified as Jane Doe #1, to produce an image of child pornography between June 11 and 12, 2005.
According to court documents, Ratigan again took photos of this victim with his cell phone in April 2011 and downloaded them to his computer while he was living at the Vincentian House. Ratigan surreptitiously took photographs of the crotch area of the child when she visited him at the Vincentian House on Easter Sunday (April 24, 2011).
Victim Jane Doe #2
Ratigan admitted that he took pictures as he exploited a 2-year-old child, identified as Jane Doe #2, to produce child pornography on May 17, 2006. These photographs were taken in the choir loft of St. Joseph’s Church in Easton.
Victim Jane Doe #3
Ratigan admitted that he took pornographic pictures of his exploitation of a 5-year-old child, identified as Jane Doe #3, between Sept. 1 and Nov. 1, 2007. Ratigan had sexual contact with this victim.
Victim Jane Doe #4
Ratigan admitted that he attempted to produce child pornography by taking close-up shots of the crotch area of the bathing suit of a 7-year-old victim, identified as Jane Doe #4, without her knowledge on July 6, 2009.
Victim Jane Doe #5
Ratigan admitted that he pulled down the pants of a child victim, identified as Jane Doe #5, while she was sleeping at her home and took pornographic pictures. This occurred between Aug. 1, 2008, and Sept. 1, 2009, while the victim was eight and nine years old.
Additional Photos
In addition to the specific offenses to which Ratigan pleaded guilty, a review of his cell phone after it was confiscated by police indicates that Ratigan also took surreptitious non-sexual photos of prepubescent girls on several occasions. In addition to the Easter Sunday photos of Jane Doe #1, Ratigan took photos of young girls in bathing suits as early as February or March 2011 and at a grocery store in April 2011. During this time period, a few members of Ratigan’s family caught him with a camera, which he had used to take pictures of a girls’ gymnastics program as it was being shown on television.
Ratigan was under written contract with his bishop during the time not to have any contact with minors, not to take pictures of minors and not to possess a computer. Ratigan nevertheless had multiple contacts with children, such as attending a St. Patrick’s Day Parade, attending a birthday party for a child at the child’s house and accessing Facebook sites. Ratigan took hundreds, if not thousands, of non-sexual photos of prepubescent girls.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department and the FBI Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Lebanon Man Sentenced to 20 Years for Coercing a Minor to Become a Sex SlaveRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., man was sentenced in federal court today for using the Internet to groom and entice a minor girl into illegal sexual conduct that led to years of sadomasochistic abuse, and two of his customers were sentenced for their roles in the sex trafficking conspiracy.
“This courageous young woman, who confronted her tormentors in court today, is getting justice for the horrific suffering and enslavement she endured at the hands of these sexual sadists,” Dickinson said. “Today’s tough sentences should erase any lingering perception that the brutal sexual torture inflicted on this young victim was in any way consensual. Now the tables are turned, as she continues her healing process while they are confined in prison for many years to come.”
Edward Bagley, Sr., also known as “Master Ed,” 46, of Lebanon, Bradley Cook, also known as "PutHer2GoodUse," 34, of Kirkwood, Mo., and Dennis Henry, 53, of Wheatland, Mo., were sentenced in separate hearings before U.S. District Judge Dean Whipple. Bagley was sentenced to 20 years in federal prison without parole. Cook was sentenced to 20 years in federal prison without parole. Henry was sentenced to 10 years in federal prison without parole.
The court also ordered that $738,250 in total restitution must be paid to the victim. Each defendant is individually liable for $123,041, or one-sixth of the total amount. As part of the agreement obtained by the government, Cook was required to pay $123,041 in restitution at the time of his sentencing.
Following their prison terms, Bagley, Cook and Henry will be on supervised release for the rest of their lives. Among the terms of supervision ordered by the court, they must adhere to a 10:30 p.m. curfew and are prohibited from any contact with the victim, the government’s attorneys and the agents involved in the case.
Bagley, Cook and Henry are among six co-defendants who pleaded guilty in this case. The remaining three co-defendants are scheduled to be sentenced on Thursday, Sept. 12, 2013. This case marked the first time nationwide that the customers, or “Johns,” have been convicted under the Trafficking Victims Protection Act in a sex trafficking case in which the victim was an adult. This is also the first human trafficking conviction in which the customers were prosecuted in a case that involved an actual victim rather than an undercover sting operation.
On Jan. 15, 2013, Bagley pleaded guilty to enticing a minor into illegal sexual conduct and prostitution. Bagley met the female victim (identified in court documents as FV) in 2002, when she was 16 years old and dating his teenage son. FV visited his trailer residence in Lebanon on numerous occasions. During FV’s visits to Bagley’s residence, he showed her images and videos of pornography on the Internet and downloaded from the Internet, including images and videos of bondage and sadomasochistic conduct. Bagley admitted that he provided FV with controlled substances. He taught her about bondage and sadomasochistic activities. His wife, co-defendant Marilyn Bagley, 48, modeled stripper and bondage clothing for FV. The Bagleys told FV that she would love being a “slave” for him. Bagley began a sexual relationship with FV prior to her seventeenth birthday.
FV viewed Edward Bagley as her boyfriend and moved into the Bagleys’ residence in 2003. They provided FV her own room and clothes, and promised her a great life.
Over the course of the next six years, Edward Bagley executed sadistic acts of torture on FV, including sewing her vagina closed, whipping and flogging her body, penetrating her breasts with needles and skewers, suffocating her with plastic bags, strangling her with rope, locking her in a dog cage, and electrocuting FV’s sexual organs with devices which produced electrical voltage. Edward Bagley photographed and videotaped many of the acts he performed on her. FV would be punished if she did not do as instructed.
Cook pleaded guilty on Dec. 20, 2011, to participating in a conspiracy to commit sex trafficking by force, fraud or coercion. From 2006 to 2009, Cook watched the victim being sexually abused and tortured in live online sessions and as depicted in photos and videos that he downloaded from the Internet. Cook admitted that he traveled to Lebanon on multiple occasions during that time to engage in sessions of sexual acts and torture with the victim. In exchange, Cook paid the victim=s Amaster@ for these sessions with such items as computer hard drives that contained images and videos of bondage, domination, sadism and masochism, which he had downloaded from the Internet.
Cook also admitted he was aware of other men who engaged in sexual acts and torture with the victim. He witnessed the victim being whipped and locked in a dog cage, as well as being tied up and shocked with multiple electrical devices. Cook described the abuse suffered by the victim as the Amost extreme@ he had ever seen.
Henry, formerly the postmaster of Nevada, Mo., pleaded guilty on March 24, 2011, to participating in the conspiracy. Henry also pleaded guilty to transporting the victim across state lines for sexual activity.
Henry admitted that he engaged in sex with the victim, and participated in torture sessions with FV that would last for hours. Henry saw pictures of FV=s vagina sewn shut, which he was told was a form of punishment. Henry also admitted that he visited FV at a Lebanon strip club where she was forced to work.
Marilyn Bagley pleaded guilty on Dec. 6, 2012, to her role in the conspiracy. Marilyn Bagley admittedly knew that other individuals came to the residence to engage in sexual conduct and sadistic acts on FV. They provided bondage pornography, meat, cigarettes, and cash, among other items, in exchange for the sessions involving sexual conduct and sadistic acts on FV.
Under the terms of her binding plea agreement, Marilyn Bagley will receive a sentence of probation. The government stated in court that Marilyn Bagley is considered in a separate category from the other defendants in this case because she was a victim of extensive physical and emotional abuse for over 25 years prior to her criminal conduct and participation in the conspiracy. Her participation in the criminal conduct resulted in the abuse being redirected away from her and to the victim.
Co-defendant Michael Stokes, also known as “The Rodent,” 65, of Lebanon, pleaded guilty on Jan. 5, 2012, to participating in the conspiracy.
Stokes became familiar with FV in 2006 when he received pictures of her over the Internet in which she was naked with whip marks over her body. Stokes was told that the victim was a slave for “life” who was tortured for hours at a time and was required to do “everything and anything” she was told. After a few weeks of chatting online, the plea agreement says, a co-conspirator brought the victim to Stokes’ house so she could do a “demo” for him. When they arrived at Stokes’ residence, bringing a duffle bag of torture devices with them, FV was instructed to “put on a show for us.” FV was naked, wearing only dog collars and ankle collars with locks. Stokes was asked whether he wanted to have sex with her. Stokes said “yes” and he had sex with FV.
Stokes was stunned that “someone had that much control over someone” and “had never seen anything like it.”
Stokes began visiting the residence where FV was being held. During his first visit, he was shown a photo of FV’s vaginal opening sewn shut and told this was done to demonstrate “what was expected of her.” FV was present for these statements and remained silent. FV never talked back or spoke up. FV never offered herself to Stokes and only acted on command.
Stokes visited the residence eight to 12 times. During these visits, he would receive sexual acts or be allowed to watch or participate in torturing FV. When he visited he brought steaks, hamburgers, jackets, personalized playing cards, lighters, cigarettes, and cash. Among other things, he witnessed FV being tortured with a crank phone, with electricity shot through devices clamped to her vaginal and anal openings.
Stokes began assisting in promoting FV at the strip clubs. Stokes took photos of FV around to the clubs to promote her there. Stokes gave $1,000 so that FV could be taken for a sexual bondage photo shoot in California for Taboo magazine. Stokes then took a copy of the magazine to promote her at the clubs. The photos in Taboo magazine were extremely mild and did not depict any of the cruel sessions Stokes had witnessed at the residence.
In 2009, Stokes was warned that there was an FBI investigation involving his conduct with FV. Stokes went on his computer and deleted hundreds of photos, his contacts with other females online, pictures of FV that he saved, and destroyed his copies of Taboo magazine and the sexual devices that he had acquired.Under federal statutes, Stokes is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
Co-defendant James Noel, 47, of Springfield, pleaded guilty on Feb. 24, 2011, to participating in the conspiracy. Noel admitted that he was one of the customers who sexually abused and tortured FV. Noel watched the victim being tortured and sometimes operated torture devices himself beginning in 2006, when she was approximately 20 years old. For example, Noel knew that FV hated being electrocuted with a crank phone (which was wired inside FV=s vaginal and anal openings and to her toes), which he described as "extremely painful," but he used it on her anyway.
Under federal statutes, Noel 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.
This case is being prosecuted by Assistant U.S. Attorneys Cynthia L. Cordes, Paul Becker and John Cowles with assistance from the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.KC Man Sentenced to Life in Prison for Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for child sex trafficking and producing child pornography, which was discovered during an investigation into an extortion and blackmail scheme.
Corey M. McKinney, also known as “Chef FireFlame Corey,” 37, of Kansas City, was sentenced by U.S. District Judge Greg Kays to life in federal prison without parole. This is the first human trafficking case prosecuted in the Western District of Missouri that has resulted in a life sentence.
On Jan. 16, 2013, McKinney pleaded guilty during the second day of his trial. McKinney admitted that he had sexually exploited a child victim, identified in court documents as “CV,” on numerous occasions since she was 14 years old. McKinney, who was the legal guardian of CV, admitted that he used computers and video equipment to record sexual activity between himself and CV. McKinney also admitted that he caused CV to engage in prostitution as part of an extortion and blackmail scheme.
On March 24, 2011, McKinney was hiding in the bedroom closet while CV was having sex with a man identified in court documents as “John Doe.” John Doe had just met CV, whom he believed to be 17 years old, on Facebook the day before. McKinney secretly recorded the sexual encounter on his cell phone and on a nearby computer.
John Doe returned to the apartment the next day to have sex again. McKinney burst into the room, asking John Doe if he knew how much trouble he could get into because his “sister” was only 16 years old. John Doe did not know that the girl was actually 16 years old, or that McKinney had recorded the earlier illicit encounter. He did not know that the 16-year-old girl was not actually McKinney’s sister, but rather was a former neighbor that McKinney himself – a 34-year-old man at the time, a few years older than John Doe – had been exploiting sexually.
After demanding $500 in exchange for not exposing John Doe to his family, friends, employer, or the authorities, McKinney made John Doe go with him to a nearby ATM to get some form of this payment. John Doe was only able to pay $100 at that time and McKinney demanded that he pay the balance in the next few days.
After this encounter, John Doe received a flurry of text messages from McKinney, who made threats and demanded money. McKinney claimed he sent the video file to a friend who worked at a local news agency. He also attempted to confront John Doe by arriving unannounced at his home. After numerous texts and an attempted in-face confrontation, John Doe approached the authorities and advised them of the extortion attempts. The text message threats from McKinney continued, and soon John Doe learned that McKinney was posting information about him and his wife on his Facebook page. Eventually, an exchange was arranged (through the direction of the Kansas City Police Department) to pay the remainder of the money in exchange for a USB drive with the video on it.
On April 7, 2011, McKinney was arrested at DeVry University in Kansas City, Mo. (where he was a student) after he exchanged a USB drive containing the video for money that he had been demanding from John Doe. Evidence uncovered during the investigation included various videos and images constituting child pornography with McKinney engaged in sexual activity with the same child victim. When investigators searched the minor’s cell phone, they found several sexually explicit photos of McKinney and the minor as well as sexually explicit photos of John Doe and the minor.
McKinney admitted that while he was incarcerated after his arrest he called the child victim dozens of times in repeated efforts to get her to recant her prior statements and testimony and persuade her to submit a statement on his behalf in the hopes of getting the charges against him dismissed.
This case was prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Brian P. Casey. It was investigated by the Kansas City, Mo., Police Department and the FBI in conjunction with the Human Trafficking Rescue Project.Final Defendants Sentenced in $900,000 Kick-Back SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the last two defendants have been sentenced in federal court for their role in a nearly $900,000 bid-rigging scheme that involved several contractors.
Thomas Villirillo, 49, of Olathe, Kan., and Jaime Grimsley, 33, of Overland Park, Kan., were each sentenced by U.S. District Judge Gary A. Fenner on Monday, Sept. 9, 2013, to five years of probation. The court also ordered Villirillio to pay $105,560 in restitution and Grimsley to pay $79,167 in restitution.
On Jan. 3, 2013, Villirillo pleaded guilty to participating in a conspiracy to commit mail fraud. Villirillo was the owner of Reliable Construction, which fulfilled construction contracts for CRES Management. Between June 2008 and May 2009, Villirillo conspired to pay approximately $105,560 in kickbacks to co-conspirators Christopher Grimsley, 43, of Overland Park (Jaime Grimsley’s husband), and Jo Den Napper, 40, of Lenexa, Kan.
Christopher Grimsley and Napper were directors of construction for Aimco (and, later, CRES Management) and in charge of procuring bids for renovating apartment complexes. In exchange for these kickbacks, Christopher Grimsley and Napper agreed to rig bids in Villirillo’s favor without the knowledge of Aimco or CRES Management. Among other things, Villirillo used his credit card to pay for hotel accommodations in Las Vegas for Grimsley and his wife, Jaime Grimsley, in exchange for granting his bids to complete construction work.
On May 2, 2013, Jaime Grimsley pleaded guilty to filing false tax returns. Jaime Grimsley formed Geronimo Consultants in 2004, which she admitted was used to deposit kickback payments to her husband, Christopher Grimsley, from various building contractors. Between 2005 and 2008, the Grimsleys filed false tax returns omitting kickback income of $217,981, for a tax loss of $79,167.
Christopher Grimsley was sentenced on March 28, 2011, to 41 months in federal prison without parole and ordered to pay $538,340 in restitution after pleading guilty to mail fraud. Between May 2003 and May 2009, Christopher Grimsley accepted approximately $538,340 in kickbacks from various contractors in the Kansas City area. In exchange for these kickbacks, he agreed to rig bids in favor of the contractors without the knowledge of Aimco.
Napper, who pleaded guilty to mail fraud, was sentenced on Aug. 28, 2013, to one year and one day in federal prison without parole. Between August 2004 and May 2009, Napper accepted approximately $355,749 in kickbacks from various contractors. In exchange for these kickbacks, Napper agreed to rig bids in favor of the contractors without the knowledge of CRES Management.
Tim Rowland, 45, of Platte City, pleaded guilty to his role in the mail fraud conspiracy and was sentenced on March 30, 2013 to five years of probation and ordered to pay $298,765 in restitution. Rowland was the owner of ATNJ, a construction company that fulfilled contracts for Aimco Apartment Management. Between November 2004 and May 2009, Rowland conspired to pay approximately $298,765 in kickbacks to Christopher Grimsley and Napper.
Chris Childers, 44, of Olathe, Kan., pleaded guilty to his role in the mail fraud conspiracy and was sentenced on July 23, 2013, to one year of probation and ordered to pay $179,570 in restitution. Childers was the owner of All State Renovations, which fulfilled construction contracts for CRES Management. Between May 2004 and April 2009, Childers conspired to pay approximately $179,570 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Childers’s favor without the knowledge of CRES Management.
Bernie Belcher, 57, of Olathe, Kan., pleaded guilty to his role in the mail fraud conspiracy and was sentenced on July 30, 2013, to five years of probation and ordered to pay $201,223 in restitution. Belcher was the owner of All State Roofing, which fulfilled construction contracts for Aimco Apartment Management. Between May 2003 and May 2009, Belcher conspired to pay approximately $201,224 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Belcher’s favor without the knowledge of Aimco.
These cases were prosecuted by Assistant U.S. Attorneys Linda Parker Marshall and William L. Meiners. They were investigated by the Environmental Protection Agency and the U.S. Department of Housing and Urban Development, Office of Inspector General.Hereford House Owner, Two Others Sentenced for Fire that Destroyed Landmark RestaurantRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an owner of the Hereford House restaurant and two men he hired were sentenced in federal court today for their roles in an arson conspiracy that destroyed the landmark downtown Kansas City restaurant on Oct. 20, 2008.
“These defendants torched a landmark restaurant in order to cheat the insurance company out of millions of dollars,” Dickinson said. “They deliberately created a violent explosion and an inferno that endangered the lives of many others. Their greed and deceit easily could have been lethal, not only for innocent neighbors and passersby, but for firefighters and other first responders. I’m satisfied that today’s sentences reflect the significance of their crimes and justly hold them accountable for their actions.”
Rodney J. Anderson, 60, Vincent Pisciotta, 59, and Mark A. Sorrentino, 47, all of Kansas City, were sentenced in separate hearings before U.S. District Judge Greg Kays. Anderson was sentenced to 15 years in federal prison without parole. Pisciotta was sentenced to 20 years in federal prison without parole. Sorrentino was sentenced to 15 years in federal prison without parole. The court is taking under advisement the recommendation for the defendants to pay $1,440,219 in restitution, for which they would be jointly and severally liable.
“After four years of tireless work by ATF and our partners, we are proud that these three men have been brought to justice,” said ATF Special Agent in Charge Marino F. Vidoli. “An iconic Kansas City landmark was destroyed as a result of greed; thankfully no one was injured or killed as a result of this violent crime.”
Anderson, Pisciotta and Sorrentino were each convicted at trial of one count of conspiracy, one count of arson and one count of using fire to commit a federal felony. Anderson was also found guilty of one count of mail fraud. They have been in federal custody since the conclusion of the trial on Oct. 31, 2012.
Anderson is a co-owner of B & C Restaurant Corporation, a holding company that owned the Hereford House restaurant business. Anderson is also a co-owner of Hereford K.C. Realty, LLC, which owned the building at 2 E. 20th Street, Kansas City, Mo., in which the Hereford House was located, and a co-owner of Skivers Corporation, a restaurant management company that managed the Hereford House and other area restaurants.
Evidence introduced during the trial indicated that in 2007 and 2008, the Hereford House restaurant at the downtown location was struggling financially. The struggles stemmed from the need to upgrade or remodel the aging restaurant and from the increased competition from new restaurants at the Power and Light District. Anderson sought offers to buy the property, remodel the property and lease the property back to his restaurant operating group. In August 2008, the last offer Anderson received was too costly to make the transaction profitable. In 2008, Anderson personally infused hundreds of thousands of dollars into the restaurant and was on the verge of personal bankruptcy. The sources of Anderson’s cash infusion included high-rate business “payday” loans, and money from his 401(k), his mother’s IRA and from his children’s trust accounts.
Anderson hired Pisciotta to set fire to the restaurant in order to collect the insurance proceeds that would pay for the remodeling that was needed for the restaurant to regain its prominence. Anderson met with Pisciotta at the Hereford House on Sept. 27, 2008. Anderson showed him around for about 50 minutes and gave him a key and a security alarm code so that Pisciotta and Sorrentino could gain entry into the Hereford House and deactivate the security alarm system.
On Oct. 12, 2008, Pisciotta and Sorrentino (accompanied by an unidentified co-conspirator) used the key and alarm code Anderson had provided to enter the Hereford House and conduct a walk-through in preparation for setting fire to the building.
On Oct. 19, 2008, Pisciotta used the key and security code to enter the Hereford House shortly before midnight. A short time later, Sorrentino arrived with the unidentified co-conspirator in a white van and the three men unloaded 14 plastic containers. Those five-gallon containers were filled with gasoline and were placed throughout the bar area of the restaurant. They were punctured in a manner to allow the gasoline to leak out in the area along with a large volume of gasoline fumes. They used a delayed ignition device that allowed the gasoline fumes to ignite in a manner that created an explosion. They also shut off the water supply to the fire suppression system and deactivated any alarm or warning mechanism for firefighters and other authorities.
At approximately 12:44 a.m. on Oct. 20, 2008, a 911 call dispatched the Kansas City Fire Department to the restaurant after an explosion at the location. The fire department arrived quickly and was able to extinguish the fire, although the restaurant was destroyed.
Anderson was out of town at the time of the arson and the company’s CFO provided the ATF with the digital video surveillance from the restaurant’s surveillance cameras. Anderson’s meeting with Pisciotta on Sept. 27, 2008 was captured on the video surveillance, along with the Oct. 12, 2008 walk-through by Pisciotta and Sorrentino. Additionally, on Oct. 19-20, 2008 Pisciotta and Sorrentino can be seen on the video surveillance unloading the plastic containers of gasoline and placing them in the bar area of the restaurant before setting an ignition device.
About a month after the fire, Anderson requested an advance payment of $300,000 from Travelers Property Casualty Company of America, which provided insurance coverage for the building and contents of the Hereford House. The check, which was sent by Travelers via overnight delivery, provides the basis for the mail fraud charge in Count Three of the indictment. Anderson also claimed a loss of $962,593 on the Hereford House building and a loss of $1,459,505 on behalf of B & C Restaurant Corporation, for a total claimed loss of $2,422,098.
This case was prosecuted by Assistant U.S. Attorneys Jess E. Michaelsen and Paul S. Becker. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, the Kansas City, Mo., Fire Department and the FBI.Joplin Man Sentenced for Disaster Fraud in Failed Attempt to Get Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for disaster fraud and making false statements to FEMA in a failed attempt to get federal disaster benefits following the May 22, 2011 tornado.
Scott Bradley Olsen, 58, of Joplin, was sentenced by U.S. District Judge Dean Whipple to 18 months in federal prison without parole, followed by two years of supervised release.
Olsen was convicted of two counts of a federal indictment in a trial that concluded on April 23, 2013.
Olsen originally filed for disaster assistance on May 26, 2011, claiming a Joplin residence was his secondary residence where he stored property that was damaged in the tornado, but FEMA found him ineligible for disaster assistance. After being denied, Olsen twice submitted documents to FEMA in an attempt to prove that the property was his primary residence. Olsen was again denied assistance on July 27, 2011.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Department of Homeland Security-Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Former Joplin Man Pleads Guilty to Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., man pleaded guilty in federal court today to his role in a wire fraud scheme following the May 22, 2011 tornado.
Christopher L. Smith, 36, of Memphis, Tenn., formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 11, 2013, federal indictment.
Smith admitted that he assisted another person to defraud the Economic Security Corporation of Southwest Area in Joplin. The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011 tornado that struck Joplin.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012. The financial loss resulting from Smith’s conduct and for which Smith must pay restitution totals $3,935.
On Aug. 21, 2013, co-defendant John L. Williams, 31, of Memphis, Tenn., formerly of Joplin, pleaded guilty to his role in the scheme. Williams, who was not a landlord or property manager of Economic Security Corporation clients, conspired with others to submit fraudulent applications for rental assistance. Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud.
The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050. The total financial loss from the wire fraud conspiracy totaled $8,565.
Under federal statutes, Smith and Williams are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Lexington Business Owner Sentenced for False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lexington, Mo., business owner has been sentenced in federal court for filing a false income tax return after claiming earned income tax credits despite his extravagant lifestyle.
Christopher Huffman, 49, of Lexington, was sentenced by U.S. District Judge Dean Whipple on Tuesday, Sept. 3, 2013, to two years and three months in federal prison without parole. The court also ordered Huffman to pay $484,505 in restitution.
Huffman is the owner of IG Construction, an asphalt and tree-trimming business formerly known as Interstate General Contractors. Huffman, who pleaded guilty on Feb. 4, 2013, admitted that he engaged in a scheme to falsely under-report the gross receipts for his business on his tax returns for tax years 2006-2008 in order to significantly reduce his income tax liability.
Huffman claimed business expenses almost equal to his gross receipts, so that his reported income was low enough to claim the earned income tax credit. The earned income tax credit is a refundable tax credit intended for workers earning a low to moderate income, which results in a tax refund for those whose credit exceeds the amount of taxes owed.
For tax years 2006 - 2008, while claiming he earned less than $20,000 per year, Huffman lived in and owned a 4,000-square-foot house which he valued at $1.6 million and which had a 13-car garage, an in-ground pool/lake, a basketball court and a volleyball court. Huffman bought a 2007 Cadillac Escalade, two classic Chevrolet Camaros and two Harley Davidson motorcycles during this time.
Huffman under-reported his gross receipts for the three tax years in question, 2006 through 2008, by a total of $1,340,379. The tax loss to the United States is $484,505.
In 2007, Huffman claimed in a loan application that he had $10,700 in cash and received a salary of $65,000, and listed his net worth at $2.4 million. In 2008, Huffman claimed in another loan application that he received a salary of $100,000 and that his net worth was almost $3 million.
This case was prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by IRS-Criminal Investigation.Duneweg Man Charged with Sexually Exploiting a 4-year-old ChildRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Duneweg, Mo., man has been charged in federal court with sexually exploiting a 4-year-old child to produce child pornography.
Tony Lasiter, 31, of Duneweg, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo., on Thursday, Aug. 29, 2013.
According to an affidavit filed in support of the criminal complaint, Lasiter used his cell phone to take nude photos of a 4-year-old child while she was in the bathtub and while she was lying in a bed with someone touching her in a sexual manner. Lasiter allegedly downloaded the photos to his laptop computer, then transferred the files to an SD card. The files were discovered on Wednesday, Aug. 28, 2013, the affidavit says, when the victim’s father noticed the SD card in the computer and opened the files. The photos allegedly were taken on three separate occasions between Aug. 13 and 28, 2013.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, the Duneweg, Mo., Police Department, the Sarcoxie, Mo., Police Department and the Jasper County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Independence Man Sentenced for Meth, Assaulting OfficerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man who bit a law enforcement officer during his arrest was sentenced in federal court today.
Robert J. Lingle, 43, of Independence, was sentenced by U.S. District Judge Beth Phillips to five years in federal prison without parole.
On Jan. 4, 2013 Lingle pleaded guilty to possessing five grams or more of methamphetamine with the intent to distribute and to assaulting a federal law enforcement officer. Lingle admitted that he agreed to sell methamphetamine to a source who was cooperating in a law enforcement investigation. When officers approached Lingle he fled.
During the foot chase, Lingle removed a loaded Rohm .22-caliber revolver from his pants. Officers ordered him to drop the weapon, at which time he did and continued to run. An officer grabbed Lingle and a struggle ensued. Lingle attempted to eat the plastic bags of methamphetamine, but the officer was able to remove the narcotics from his mouth and toss them aside. Lingle then grabbed the officer’s arm and intentionally bit him on his hand, breaking skin and drawing blood.
This case was prosecuted by Special Assistant U.S. Attorney Leena Ramana. It was investigated by Homeland Security Investigations and the Kansas City, Mo., Police Department.Former Bookstore Manager Sentenced for Stealing $1.1 Million from Missouri State UniversityRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former manager of the Missouri State University bookstore was sentenced in federal court today for embezzling more than $1.1 million by pocketing the money from the school’s textbook buyback program.
Mark Brixey, 48, of Ozark, Mo., was sentenced by U.S. District Judge Gary A. Fenner to five years and three months in federal prison without parole. The court also ordered Brixey to pay $1,329,484 in total restitution to his victims, including $163,237 to Missouri State University, $166,247 to the Internal Revenue Service and $1 million to Zurich American Insurance Company.
On March 26, 2013, Brixey pleaded guilty to wire fraud, money laundering and filing a false tax return. Brixey, the manager of the MSU bookstore from 1998 to August 2012, admitted that he embezzled $1,163,237 from the student textbook buy-back program.
Brixey’s 10-year fraud scheme began in 2003 with the theft of nearly $29,000 and escalated each year, with more than $190,000 stolen during each of the last two full years of the scheme in 2010 and 2011. Brixey embezzled another $20,580 before he resigned in 2012.
Textbook Buyback Scheme
As manager of the MSU bookstore, Brixey handled all contacts related to the textbook buy-back program. At the close of each semester, MSU students had the opportunity to sell their used textbooks to Follett Educational Services, which contracted with MSU to administer the book buy-back program. Follett operated 10 textbook buy-back stations on the MSU campus during finals week in December and May of each year.
On the last day of each buy-back period, a Follett representative prepared a report that detailed how many textbooks were purchased and at what price. A Follett representative also calculated the commissions to be paid to MSU for allowing Follett to conduct the textbook buy-back program at the university. A Follett representative gave a sight draft/check to Brixey for payment of the commission to MSU (beginning in 2011, the Follett representative paid the commission in cash directly to Brixey).
Follett also purchased textbooks that were no longer used by MSU professors directly from the MSU bookstore. Similar to the textbook buy-back program, a Follett representative calculated the total amount to be paid to MSU for these books and gave a sight draft/check to Brixey. The bookstore also disposed of surplus textbooks by reselling them to textbook wholesalers, such as MBS Textbook Exchange, Inc., and Nebraska Book Company.
When Brixey received sight drafts/checks payable to MSU for these buy-back programs, he took those checks to the MSU bursar’s office. Brixey falsely claimed that the sight drafts/checks were needed to pay students for books purchased in the buy-back program. The bursar’s office relied upon Brixey’s misrepresentations and provided cash to Brixey.
Brixey did not record the cash received in the MSU Bookstore accounting system, but instead used the cash for his personal benefit.Count One: Wire Fraud
Brixey admitted that he executed the scheme to cause electronic transmissions related to the processing of sight drafts (in connection with the commissions and the purchase of textbooks).
Count Two: Money Laundering
Brixey admitted that he concealed his fraud scheme by disguising the proceeds through multiple financial transactions. Brixey routinely deposited the proceeds of his fraud scheme into Educational Credit Union accounts then transferred cash from those accounts to purchase and add value to certificates of deposit. Between Jan. 11, 2008, and July 16, 2012, Brixey made or caused to be made 55 transfers totaling $121,000 from Education Credit Union deposit accounts to Educational Credit Union certificates of deposit.
Count Three: Filing a False Tax Return
Brixey admitted that on April 15, 2011, he filed a tax return that failed to report approximately $194,521 in income received through the fraud scheme in 2010. Brixey also filed a tax return for 2011 that failed to report $192,202 of income from his fraud scheme and a tax return for 2009 that failed to report $166,354 of income from his fraud scheme.
Between 2009 and 2011, Brixey failed to report a total of $553,077 of income from his fraud scheme, resulting in a tax loss to the government of approximately $166,247 for those three years.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation, the Springfield, Mo., Police Department and the Greene County, Mo., Prosecuting Attorney.
West Plains Man Sentenced to 12 Years in Prison for Receiving Child Porn over the InternetRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man was sentenced in federal court today for receiving child pornography over the Internet and for possessing child pornography.
Scott Allen Johnson, 26, of West Plains, was sentenced by U.S. District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Johnson to pay $5,000 in restitution to two of the victims portrayed in the images of child pornography (or $3,000 in restitution if the amount is paid within 30 days). Johnson, who pleaded guilty on Jan. 17, 2013, must also forfeit to the government the laptop computer that was used to commit the offenses.
An officer with the Southwest Missouri Cyber Crimes Task Force identified Johnson’s computer as sharing images of child pornography on a peer-to-peer file-sharing network on Dec. 30, 2011. The officer connected with Johnson’s computer on the network again on Jan. 9, 2012 and was able to determine that he had 322 files available for sharing, of which 139 were identified as known files depicting child sexual abuse. Officers executed a search warrant at Johnson’s residence on Feb. 9, 2012 and seized a laptop computer, four computer towers and 42 optical media disks.
Investigators found approximately 219 images and 46 movie files of child pornography on the laptop computer. The ages of the child victims ranged from 2 to 12, and the images depicted scenes of sexual intercourse, oral sex, anal sex, child bondage, bestiality and nudity.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force (SWMCCTF), the Cassville, Mo., Police Department and the Howell County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jefferson City Man, Woman Indicted for $100,000 Student Loan FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man and woman were indicted by a federal grand jury today for engaging in a bank fraud scheme in which they unlawfully received more than $100,000 in student loans under another person’s name.
Lisa Kay Baker, 52, and David Waymon Baker, 56, both of Jefferson City, were charged in an 11-count indictment returned by a federal grand jury in Jefferson City. Although Lisa and David Baker were married to each other at the time of the alleged criminal scheme, they divorced in 2009.
Today’s indictment alleges that Lisa and David Baker applied for student loans in the name of another person (identified in the indictment as “RLB”) without that person’s knowledge or consent from July 2005 to September 2007. In each application submitted, the indictment says, the applications were filled out by at least one or both of the defendants, and then one or the other (or a third person at their direction) would forge the signature of “RLB.”
In these loan applications, according to the indictment, Lisa Baker and David Baker, pretending to be “RLB,” concealed the fact that they were actually getting use of the money themselves and that “RLB” had no knowledge of the loan applications and did not authorize the applications to be made.
Fraudulent loan applications were submitted to Sallie Mae Loan Processing, the indictment says, which would then assign the loans to Sallie Mae Bank and The First National Bank of Sioux Falls (S.D.).
Lisa and David Baker are each charged in 11 counts of bank fraud for a series of 11 fraudulent loans, ranging from $6,500 to $19,200, totaling $109,000.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department and the Jefferson City, Mo., Police Department.Additional Charges, $1.3 Million Judgment against Springfield, Kirbyville Men Indicted for K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that additional charges have been brought against a Springfield, Mo., man and two Kirbyville, Mo., men for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2, including a money judgment of more than $1.3 million.
Travis E. Butchee, also known as “Donkey,” 37, of Springfield, and Michael J. Saguto, 42, and Christian L. Turner, 45, both of Kirbyville, were charged in a 16-count superseding indictment returned by a federal grand jury in Springfield on Tuesday, Aug. 27, 2013. The superseding indictment replaces an indictment that was returned on June 12, 2013 and contains 10 additional counts of distributing a controlled substance and money laundering, as well as additional forfeiture allegations.
Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
The superseding indictment maintains the allegation that Butchee, Saguto and Turner participated in a mail fraud conspiracy from March 1, 2011 to May 16, 2013. They allegedly devised a scheme to defraud the Food and Drug Administration and to defraud the public in order to profit from false claims that synthetic marijuana products (such as Blazed, Red Eyed, Donkey Punch, Jolly Grape Giant, South of the Tracks, Baby Face, Scarface, Hillbilly Hay and others) – which were mailed or delivered by commercial carriers – were “incense” or “potpourri” and “not for human consumption.” In reality, the indictment says, these substances were synthetic cannabinoids that contained controlled substances and were intended for human consumption as a drug.
The indictment also maintains the allegation that Butchee, Saguto and Turner participated in a conspiracy to distribute a controlled substance. They allegedly manufactured and distributed synthetic cannabinoids using ingredients obtained through the mail from China and Thailand.
In addition to the conspiracy, the superseding indictment now charges Butchee, Saguto and Turner in six counts of distributing a controlled substance.
The superseding indictment also charges Butchee and Saguto with participating in a money-laundering conspiracy from March 1, 2011, to May 16, 2013. Butchee and Saguto allegedly conducted financial transactions that involved the proceeds of the unlawful mail fraud conspiracy and the unlawful drug-trafficking conspiracy. They allegedly conspired to wire funds to the People’s Republic of China in order to carry on those conspiracies.
In addition to the conspiracy, Butchee and Saguto are charged in three counts of money laundering related to specific financial transactions in February 2013.
As in the original indictment, Butchee and Saguto are charged with three counts of maintaining a place for the purpose of unlawfully storing and distributing a controlled substance. They allegedly used residences in Kirbyville, Merriam Woods, Mo., and Springfield to store and distribute synthetic marijuana. Turner is also charged with being a felon in possession of firearms. Turner, having been convicted of a felony, allegedly possessed a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle.
The indictment also contains a forfeiture allegation, which would require Butchee, Saguto and Turner to forfeit to the government any property obtained from the proceeds of the alleged offenses. In the superseding indictment, that now includes a money judgment of $1,354,034, representing the total amount of money involved in the conspiracy. The forfeiture also includes $31,580 that was seized by law enforcement officers, four rifles and a shotgun.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.Stanberry Man Sentenced to 70 Years for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stanberry, Mo., man who produced child pornography and possessed more than a thousand images of child pornography was sentenced in federal court today.
Jeffrey Dale Wiederholt, 35, of Stanberry, was sentenced by U.S. District Judge Gary A. Fenner to 70 years in federal prison without parole.
On Oct. 16, 2012, Wiederholt pleaded guilty to one count of attempting to produce child pornography, one count of transporting child pornography and one count of receiving child pornography.
According to court documents, Wiederholt sexually abused a child under the age of 12 on numerous occasions over the course of approximately seven months while he was producing child pornography. Wiederholt’s exploitation was characterized in court documents as unusually vicious. His forcible abuse of the child victim included his use of duct tape (to cover her mouth during these assaults) and coercion involving threats of murder. He then bragged of his sexual abuse to those individuals with whom he actively traded child pornography.
In August 2010, federal agents learned that Wiederholt was actively trading child pornography with a number of individuals. Wiederholt was caught trading child pornography with another person who was the target of an investigation conducted by the Air Force Office of Special Investigation.
Upon a review of Wiederholt’s email account and personal cell phone, as well as his postings on an image-hosting Web site that caters to traders of child pornography, it was apparent that he had produced images of child pornography. Multiple emails, message board postings, and Wiederholt’s own confession confirmed that Wiederholt used a minor to produce child pornography on Dec. 29, 2010. Wiederholt saved an image of the child victim on his personal cell phone. Wiederholt communicated to multiple individuals, as well as in his confession, that he was sexually abusing this minor. Wiederholt subsequently distributed this image and others via email and on an image-hosting service.
A forensic examination of Wiederholt’s laptop computer demonstrated that he was in possession of at least 1,238 images and 33 video files of child pornography. Wiederholt’s email account demonstrated that he had distributed and received dozens of emails containing numerous images and videos of child pornography. Some of these images depicted acts of a sadistic and masochistic nature.
Court documents cite Wiederholt’s extensive criminal history, including a history of sex-related offenses and inappropriate contact with minor females. Wiederholt has multiple convictions for repeated contact with a then-15-year-old minor. Even after being confronted by law enforcement, court documents state, Wiederholt continued to contact this 15-year-old minor and express his “love” for her.
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) and the Department of Justice – Child Exploitation and Obscenity Section.
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."Callaway County Man Sentenced for Facilitating Brother's Drug-trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Callaway County, Mo., man has been sentenced in federal court for facilitating his brother’s drug-trafficking conspiracy. Two other individuals from mid-Missouri have also been sentenced for their roles in the drug-trafficking conspiracy.
Gary Randall Holloway, 34, of Callaway County, was sentenced by U.S. Chief District Judge Fernando J. Gaitan on Monday, Aug. 26, 2013, to four years in federal prison without parole, the statutory maximum penalty.
In a separate but related case, Jeffrey Cordell Patterson, 41, of Fulton, and Damon Reed Lower, 37, of Columbia, Mo., were also sentenced yesterday for their roles in the drug-trafficking conspiracy. Patterson was sentenced to seven years and six months in federal prison without parole. Lower was sentenced to two years and six months in federal prison without parole.
On March 18, 2013, Gary Holloway pleaded guilty to using a telephone to facilitate a drug-trafficking conspiracy. Federal investigators intercepted telephone calls between Gary Holloway and his brother, Jason Randall Holloway, 33, of Callaway County. During those conversations, Gary Holloway made arrangements to pay his brother for two pounds of marijuana he had been fronted. Gary Holloway later admitted that his brother had fronted him the marijuana so that he could make money after his release from prison.
Jason Holloway awaits sentencing after pleading guilty in the separate but related case to participating in a conspiracy to distribute 100 kilograms or more of marijuana and five kilograms or more of cocaine from 2007 to September 2010. Jason Holloway also pleaded guilty to three additional counts of possessing marijuana with the intent to distribute, distributing marijuana and possessing marijuana and cocaine with the intent to distribute.
At the time of his guilty plea, Jason Holloway acknowledged that he had been acquiring approximately 50 pounds of marijuana and one kilogram of cocaine each month for the past two years from his sources in Kansas City, Mo. – primarily co-defendant Jaime Cerros-Perez, also known as Leonel Espinoza, Jr., 31. Cerros-Perez was sentenced on Sept. 27, 2012, to seven years and three months in federal prison without parole after pleading guilty to his role in the conspiracy.
Jason Holloway stored bulk amounts of marijuana at Lower’s residence. Law enforcement officers seized approximately 117 pounds of marijuana from that residence on July 10, 2010.
Lower pleaded guilty on Feb. 25, 2013, to his role in the conspiracy to distribute marijuana. As part of his plea, Lower admitted that he began buying distribution amounts of marijuana from Jason Holloway in mid-to-late 2007 and that in November 2007 he began transporting bulk shipments of marijuana from the Kansas City area. Lower estimated that he made one to two trips a month, usually acquiring 50-100 pounds.
On March 18, 2013, Patterson pleaded guilty to his role in the conspiracy to distribute cocaine. Patterson’s plea agreement acknowledged that he had been intercepted multiple times on the telephone in what were believed to be drug-related conversations and that, according to a co-defendant statement, Patterson was Jason Holloway’s primary cocaine customer, buying approximately nine ounces of cocaine three times a month for between $1,000 and $1,200 per ounce.
This case was being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Drug Enforcement Administration, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group), the Fulton, Mo., Police Department, the Missouri State Highway Patrol, the Columbia, Mo., Police Department, the Callaway County, Mo., Sheriff’s Department and the Boone County, Mo., Sheriff’s Department.
Two La Monte Men Sentenced for Drug TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two La Monte, Mo., men were sentenced in federal court today in separate but related cases that stem from an investigation into a Mexican drug-trafficking organization.
These cases are part of a federal investigation of the Los Parientes drug-trafficking organization, composed of a group of Mexican nationals who illegally smuggled large quantities of methamphetamine into southern California, which would then be driven cross-country to Kansas City, Kan., for further distribution.
USA vs. Torres
Jose Martinez Torres, 27, of La Monte was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 10 years and one month in federal prison without parole.
On Nov. 5, 2012, Torres pleaded guilty to his role in a conspiracy to distribute methamphetamine from August 2010 to Nov. 25, 2011. Torres admitted that he participated in two undercover drug buys involving an undercover law enforcement officer. Torres supplied 1 ½ ounces of methamphetamine to Justin Jeremiah Sorrell of Green Ridge, Mo., for $3,100, which Sorrell sold to the undercover officer. During the transaction, Torres explained how his cousins brought the methamphetamine from Sinaloa, Mexico, and stated that the guy they obtained the methamphetamine from in Sinaloa was number two on the FBI’s ten most wanted list. He explained how the methamphetamine was moved from Sinaloa to Tijuana, Mexico, where it was smuggled across the border. A few days later, Torres again supplied methamphetamine to Sorrell. Sorrell then sold an undercover law enforcement officer two ounces of methamphetamine for $3,400.
Torres was arrested during a traffic stop on July 8, 2011. During a search of his vehicle, a state trooper found a bag of methamphetamine and a bag of cocaine hidden inside a flashlight under the driver’s seat. After being released on bond by state authorities, he was later arrested on a federal warrant. When officers searched his car, they found two pistols and $80,000, which Torres must forfeit to the government along with $6,051 found in the pockets of his jacket.
Sorrell, who pleaded guilty in a separate case, was sentenced on April 1, 2013, to four years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Missouri State Highway Patrol, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Mid-Missouri Drug Task Force, the Sedalia, Mo., Police Department and the Warrensburg, Mo, Police Department.
USA vs. Arroyo
Miguel Angel Arroyo, 26, of La Monte, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 10 years in federal prison without parole.
On March 25, 2013, Arroyo pleaded guilty to distributing methamphetamine. Arroyo admitted that he sold two ounces of methamphetamine to an undercover law enforcement officer for $2,800. During the transaction, Arroyo stated that he was selling four pounds of methamphetamine each week and that he was expecting 400 pounds of marijuana “coming in next week.”
On another occasion, Arroyo sold a pound of marijuana to an undercover law enforcement officer for $650.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Missouri State Highway Patrol, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration and the Sedalia, Mo., Police Department.Tuscumbia Man Sentenced for Armed Bank RobberyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tuscumbia, Mo., man was sentenced in federal court today for the armed robbery of First State Bank in Iberia, Mo.
David Brian Krzysik, 49, of Tuscumbia, was sentenced by U.S.District Judge Brian C. Wimes to eight years and three months in federal prison without parole.
On Oct. 31, 2012, Krzysik pleaded guilty to one count of bank robbery and one count of carrying a firearm in relation to a crime of violence.
On March 15, 2012, at 11:15 a.m., Krzysik entered the First State Bank in Iberia. He was wearing a black wig, a black costume beard, sunglasses, light blue jeans, a jacket, a red baseball cap, and gloves. Krzysik approached a bank teller and placed a black revolver on the counter in front of the teller. “This is real,” Krzysik said. “I want your money. I don’t want to hurt anybody.” Krzysik placed a black duffel bag on the counter and the teller emptied the currency in her drawer into the bag. Krzysik approached another teller, who also put money into the duffel bag, then left the bank. The total amount of cash taken during the robbery was $3,651.
Krzysik also admitted that he attempted, unsuccessfully, to rob Central Bank in Tuscumbia. At approximately 11:45 a.m., Krzysik arrived at the Central Trust Bank in Tuscumbia. Krzyski attempted to enter the bank through the front door, however, bank employees saw him coming – wearing the wig, beard and sunglasses – and locked the door. Krzysik left the bank, returned to his car, placed the duffel bag in the trunk, and then left the area.
Police officers, who responded to a 911 call by bank employees, arrived and tried to stop Krzysik, who was driving in circles around the town square. Krzysik drove off the road onto a small trail that led to a wooded area, and drove down an embankment before he stopped and was arrested.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Miller County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Bank Chairman Pleads Guilty to using Public Funds to Purchase Luxury Vacation CondoRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., bank chairman pleaded guilty in federal court today to misleading federal investigators about his use of $381,000 in bank bailout funds to purchase a luxury condominium in Fort Myers, Fla.
“At a time when many other Americans were losing their homes, he was siphoning off public funds to buy a luxury vacation condo in Florida,” Dickinson said. “These federal funds were intended to help stablilize the economy during a fiscal crisis. Instead, this disgraced business leader took advantage of the situation to benefit himself and other bank executives, then lied to federal investigators in an attempt to hide his scheme.”
Darryl Layne Woods, 48, of Columbia, 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 making a false writing.
Woods was the chairman and chief financial officer of Mainstreet Bank in Ashland, Mo. He was also the chairman, president and majority shareholder of Calvert Financial Corporation, the bank holding company for Mainstreet Bank.
“The purpose of TARP is to promote financial stability and lending in a time of national economic crisis, not to bankroll the purchase of luxury vacation properties for bank executives,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “When SIGTARP required Mainstreet Bank to disclose how it spent TARP funds, bank Chairman and CFO Woods failed to tell the truth that within days of receiving the TARP funds, the bank spent more than a third of the funds purchasing a waterfront condo in Florida for his and other executives’ use. SIGTARP and our law enforcement partners will hold accountable and bring to justice those guilty of crimes related to TARP.”
In November 2008, Calvert Financial applied to receive funds through the Troubled Asset Relief Program (TARP). TARP was created through the Emergency Economic Stabilization Act of 2008. The purpose of TARP was to provide capital to financial institutions to enable them to build their capital base and to increase the flow of financing to businesses and individuals. The U.S. Department of Treasury approved the request for TARP funds, and in January 2009 Calvert Financial received $1,037,000 through the TARP Capital Purchase Program.
Woods admitted today that he used $381,487 of the TARP funds to purchase the luxury condominium on Feb. 2, 2009.
The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) was required to supervise, audit and investigate institutions that received TARP funds. SIGTARP sent letters to various financial institutions seeking specific information as to how TARP funds were used by the institutions. Woods responded to that inquiry in a letter dated Feb. 10, 2009.
Woods failed to disclose in his letter that a significant portion of TARP funds had been used to acquire the condominium. Failure to disclose the purchase of the condominium was a material misrepresentation of facts relating to the true use of TARP funds.
Under the terms of today’s plea agreement, Woods is required to desist from any further involvement in banking and may not serve as an officer, director, employee or affiliated party of any financial institution or agency. The government agrees not to bring any charges against his wife, Jackie Woods (Ralston), for any criminal offenses arising from the facts known by the government as a result of this investigation.
Under federal statutes, Woods is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000 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 Jim Lynn. It was investigated by the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Reserve Board – Office of Inspector General.
Jury Convicts KC Man of Illegally Posessing a FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of illegally possessing a firearm, his second federal conviction for that offense.
Mario A. Thibeaux, 39, of Kansas City, was found guilty of being a felon in possession of a firearm. This is Thibeaux’s second federal conviction for being a felon in possession of a firearm. He also pleaded guilty to the offense on March 31, 2005, and in that case was sentenced to 63 months in federal prison.
Evidence introduced during the trial indicated that Thibeaux was in possession of a Bersa .380-caliber semi-automatic pistol on Feb. 22, 2013. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In addition to his prior felony conviction for being a felon in possession of a firearm, Thibeaux has two prior felony convictions for possession of a controlled substance and a prior felony conviction for distributing a controlled substance.
Thibeaux was arrested on Feb. 22, 2013, after Kansas City, Mo., police officers were called at about 2 a.m. to investigate an outside disturbance involving a party armed with a gun. The officers were given information that there were two males and a female fighting and one of the males was waving a gun around. As the officers arrived, they observed a maroon Dodge Durango apparently stuck in the snow in the middle of the street. Two males and a female were apparently trying to free the vehicle from the stuck position in the snow. The officers asked the individuals to show their hands, but Thibeaux failed to comply with the officers’ orders. Thibeaux moved to the back of the vehicle, reached into the pocket of the vest he was wearing and threw a black object towards the driver’s side of the vehicle.
The object thrown by Thibeaux was recovered and determined to be a loaded Bersa .380-caliber, semi-automatic pistol. Thibeaux was determined to be a convicted felon and placed under arrest.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about four hours over two days before returning the guilty verdict to U.S. District Judge Greg Kays, ending a trial that began Tuesday, Aug. 20, 2013.
Under federal statutes, Thibeaux 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 D. Michael Green. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.KC Tax Preparer Pleads Guilty to False ClaimRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to presenting a false tax claim.
Chanita Cotton, 44, of Kansas City, pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan to the charge contained in a Nov. 27, 2012, federal indictment.
By pleading guilty today, Cotton admitted that she prepared 23 false and fraudulent income tax returns that resulted in more than $90,000 in refunds. Cotton received a significant portion of those refunds.
Cotton prepared federal income tax returns for her friends, family, clients and others without providing any information on the returns that would identify her as the preparer. During the tax years 2007 through 2010, Cotton prepared returns for clients that included false income amounts in order to earn refunds through the Earned Income Tax Credit (EITC) for amounts higher than they were legally owed. The EITC is a refundable tax credit intended for workers earning a low to moderate income, which results in a tax refund for those whose credit exceeds the amount of taxes owed.
Cotton abused the EITC by including falsified household help income to inflate her clients’ income amounts and earn the maximum EITC. Household help income is earned by working in someone’s home, e.g. babysitting, house cleaning, nursing. Household employers do not need to provide their employees with Forms W-2 if the earned incomes fall below a certain threshold.
Under federal statutes, Cotton 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 Senior Litigation Counsel Gregg R. Coonrod. It was investigated by IRS-Criminal Investigation.Former Joplin Man Pleads Guilty to Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., man pleaded guilty in federal court today to his role in a wire fraud conspiracy following the May 22, 2011 tornado.
John L. Williams, 31, of Memphis, Tenn., formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 11, 2013, federal indictment.
According to today’s plea agreement, Williams engaged in a conspiracy to defraud the Economic Security Corporation of Southwest Area in Joplin. The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011 tornado that struck Joplin.
Williams, who was not a landlord or property manager of Economic Security Corporation clients, conspired with others to submit fraudulent applications for rental assistance. Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud.
The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050. The total financial loss from the wire fraud conspiracy totaled $8,565.
Under federal statutes, Williams 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 Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Jury Convicts KC Woman of Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was convicted in federal court today of her role in a conspiracy that was responsible for distributing hundreds of kilograms of cocaine in Jackson County, Mo.
Tamiko Grandison, 41, of Kansas City, was found guilty of participating in a conspiracy to distribute cocaine in Jackson County between Jan. 1, 2004, and June 17, 2010. She was taken into custody immediately after the verdict was announced.
Evidence introduced during the trial indicated that Grandison was the conduit who made deliveries of cocaine to customers in the Kansas City area on behalf of her then-boyfriend, Jiles Johnson, formerly of Kansas City, Mo. Johnson, who testified at Grandison’s trial, is being prosecuted in a separate case in the Northern District of Georgia. The government alleges that tons of cocaine was smuggled across the Mexican border and distributed throughout the United States to Johnson and others.
Johnson brought cocaine to Kansas City in 30- and 50-gallon drums and broke it down into kilogram quantities in Grandison’s basement. Grandison stored multi-kilogram quantities of cocaine at her residence until it was delivered.
Grandison delivered hundreds of kilograms of cocaine to co-conspirators over the course of the conspiracy. She also picked up the money from these customers for Johnson, and helped him conceal the drug-trafficking conspiracy by laundering some of the proceeds.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdicts to U.S. District Judge DeanWhipple, ending a trial that began Monday, Aug. 19, 2013.
Under federal statutes, Grandison 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 $4 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Charles E. Ambrose, Jr. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.Jury Convicts KC Man of Illegally Possessing FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of being a felon in possession of firearms.
Jamie D. Jones, 50, of Kansas City, was found guilty of two counts of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Jones was in possession of a Jennings .380-caliber handgun on Nov. 10, 2010, for which he was originally indicted on Oct. 17, 2012. Jones sold the Jennings handgun for $150 to a confidential source who was working under the direction of police detectives.
Jones was also in possession of a Lorcin 9mm handgun on April 16, 2012, for which he was charged in a superseding indictment on May 22, 2013. When law enforcement officers executed a search warrant at Jones’s residence, they found the loaded Lorcin handgun inside a wall vent in Jones’s bedroom.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jones has prior felony convictions for robbery and fraud.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts to U.S. Chief District Judge Fernando J. Gaitan, ending a trial that began Monday, Aug. 19, 2013.
Under federal statutes, Jones is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorneys Leena V. Ramana and Sarah A. Castle. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and Homeland Security Investigations.
Guardian of Justice AwardRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., police detectives and an FBI agent have received the Guardian of Justice Award.
Kansas City Police Department Detectives Greg Harmon and Rebecca Mills and FBI Special Agent Jeffrey Atwood were honored on Thursday, Aug. 15, 2013, during the 11th Annual LECC Training Seminar in Springfield, Mo.
Greg Harmon & Rebecca Mills
Harmon and Mills were recognized for their singular work in the successful investigation and prosecution of Corey McKinney. McKinney pleaded guilty during the second day of his federal jury trial on Jan. 16, 2013, to child sex trafficking and producing child pornography. A sentencing hearing is scheduled for Sept. 10, 2013. Under federal statutes McKinney 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.
The McKinney case originated from a walk-in complaint by a Kansas City man who said he was the victim of an extortion attempt by McKinney, who was threatening this man for having sex with his “16-year-old sister.” Harmon and Mills interviewed this man, and in the process uncovered an unseemly story involving an illicit Internet meet-up, surreptitious recordings of sexual activity, his serial exploitation of a minor, all wrapped up in an extortionate blackmail scheme. Their proactive work in this case enabled them to quickly identify McKinney, who was arrested in the midst of collecting money as part of his ill-conceived scheme.
These detectives collaborated with various law enforcement agencies (including the FBI and the Jackson County Prosecutor’s Office) and numerous private entities to ensure that federal prosecutors received all necessary and helpful evidence to build and prosecute this case. Harmon and Mills were wholly professional and diligent as this case progressed. At trial, Harmon served as the lead case agent and Mills provided expert testimony on human trafficking and victim issues that assisted the jury in putting the evidence introduced at trial within a human trafficking context.
This investigation and prosecution consumed much of their time and resources, but, despite this fact, they continued to generate a number of cases worthy of federal prosecution during the pendency of this prosecution.
Harmon and Mills have worked closely with the U.S. Attorney’s Office to develop human trafficking investigations. Their past and ongoing work has led to numerous successful prosecutions, many originating out of Operation Guardian Angel, a proactive human trafficking initiative that has been adapted as a model replicated numerous times in various districts across the nation.
Jeffrey Atwood
Atwood was recognized for his work investigating a cold case that led to the successful prosecution of a violent offender. Mark Joseph Morris pleaded guilty to some robbery charges contained in a federal indictment and was convicted at trial on the remaining charges (of using firearms to commit the robberies) on March 22, 2013. Morris faces at least 55 years in prison for using firearms to rob two Springfield banks and a drugstore in November 2008.
Atwood focused the investigation of the unsolved armed robberies in a new direction, laying the groundwork for the firearms convictions even though no gun was recovered in the robberies and no positive identification had been made of the suspect. Morris, the master of disguise, had terrorized two Springfield banks, a drug store, two grocery stores and left scores of victims traumatized from his gun wielding antics.
Atwood relied upon old-fashioned police work, which meant he got from behind his desk and pounded the pavement. He spoke with the Springfield police investigators to see if anything was missing out of their reports. He visited the witnesses and had them go over their statements to ensure accuracy, and asked questions that previous investigators did not ask. He crawled over crime scenes again to ponder motive and escape routes. Atwood repeatedly viewed the surveillance video until discovering the most miniscule of details that linked the suspect to two of the robberies.
During the trial, Atwood worked very closely with detectives from the Springfield Police Department to develop additional evidence, including statements that greatly assisted in the cross examination of the defendant. Whether he was asked to speak to witnesses, to explore a crime scene again, or to make the evidence available for the defense, Atwood worked tirelessly to fulfill that request. During trial, he expertly handled the audio-visual component of the bank and consumer store video presentation. His unwavering enthusiasm was an encouragement throughout the criminal prosecution process.
Ultimately, Atwood’s work led to the removal of a very dangerous, repeat felon from our community. Even though Morris had numerous violent felonies on his record, these federal convictions will ensure that he will not victimize any community again.
Atwood started his law enforcement career as street cop in the Kansas City, Mo., Police Department, rising through the ranks to become a detective before joining the FBI.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.Enoch B. Morelock AwardRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that Sgt. Shannon Jeffries, an investigator with the Callaway County, Mo., Sheriff’s Department, has received the 2013 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Jeffries, coordinator of MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), was honored for his commitment to public service both on and off duty during the 11th Annual LECC Training Seminar in Springfield, Mo., on Thursday, Aug. 15, 2013.
Jeffries has served as the coordinator for MUSTANG for three years, a MUSTANG narcotics officer for 12 years and Sergeant/Investigator for the Callaway County Sheriff's Department for 17 years. He also serves as the Certified Firearms Instructor and Certified Active Shooter Instructor for the sheriff's department. The MUSTANG Drug Task Force Board can attest to the excellent statistics of the task force he coordinates, his display of leadership, honorable moral character and unrelenting drive to serve and give back to his community and department in his duties assigned, which are many.
A substantial amount of illicit drugs and currency have been seized and numerous convictions made due to the coordination of the MUSTANG Drug Task Force. MUSTANG includes the sheriff’s departments in Callaway, Cole, and Boone counties, the police departments of Jefferson City, Columbia, Fulton and Boonville and the Missouri State Highway Patrol.
Jeffries unselfishly gives back to the community in other ways by participating in a youth mentor program within the Jefferson City School District, which entails meeting with a grade school child on a weekly basis. He also coaches youth sport programs, is active in the neighborhood watch program and provides informative presentations to area schools and to other law enforcement agencies in order to enhance their knowledge of drugs and public safety.
Today's law enforcement community calls on officers and leaders capable of working well with others, collaboration, exhibiting effective interpersonal communication, innovation, inspiration and the ability to contribute without dominating any task. It is these skills that Jeffries brings to every case/situation and administrative decision he makes. His extraordinary poise and the environment he inspires derive the very best from his officers of the MUSTANG Drug Task Force and colleagues of the sheriff's department.
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847, in Sullivan County. Sheriff Morelock was shot and killed during a court-ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral
character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors' offices.Jury Convicts KC Man of 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 convicted in federal court today of 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 found guilty of attempted armed bank robbery, using a firearm during a violent crime and being a felon in possession of a firearm.
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 ared 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.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdicts to U.S. District Judge Beth Phillips, ending a trial that began Monday, Aug. 12, 2013.
Under federal statutes, Smith is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of 45 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor and Special Assistant U.S. Attorney Sarah A. Castle. It was investigated by the FBI and the Kansas City, Mo., Police Department.Jury Convicts Jefferson City Man of Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was convicted in federal court today of illegally possessing six firearms.
Andrew David Brandwein, 39, of Jefferson City, was found guilty of being a felon in possession of firearms.
Evidence introduced during the trial indicated that Brandwein was in possession of six firearms – a Marlin .22 magnum caliber rifle, a Harrington and Richardson .223-caliber rifle, a Weatherby .300 SBY Mag. rifle, a New England Firearms 10-gauge shotgun, a Rossi .30-06 Springfield rifle and a Harrington and Richardson .410 shotgun – on Jan. 8, 2011.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brandwein has three prior felony convictions for possession of a controlled substance and prior felony convictions for attempting to manufacture a controlled substance, possession of a precursor drug with the intent to manufacture methamphetamine, unlawful possession of a concealable firearm and the distribution, delivery, sale or manufacture of a controlled substance.
His wife, Debra Louise Brandwein, 54, pleaded guilty on Aug. 9, 2013, to tampering with evidence. She admitted that she cleaned two jars that contained methamphetamine in order to protect her husband from prosecution.
Law enforcement officers were dispatched to the Brandwein’s residence on Jan. 8, 2011, when a large barn on the property caught on fire. Officers knocked on the door but received no response. After they used the keys from a truck parked near the barn to enter the house, Andrew Brandwein came out of the back bedroom, and appeared disoriented and confused. Debra Brandwein arrived at the residence a short time later. While in the residence, officers found five firearms sitting on the floor next to a television stand. There was also a loaded Harrington and Richardson .223 rifle lying on the ground next to the truck near the barn.
Andrew Brandwein was arrested; officers found several .223 shells and $2,458 in his pants pockets.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about two and a half hours before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Aug. 12, 2013.
Under federal statutes, Andrew Brandwein 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 Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Cole County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Osage Fire Protection District, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group) and the Missouri State Highway Patrol.
Independence Business Owner, Wichita Attorney among 18 Indicted in $18 Million Conspiracy to Traffic in Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., business owner and a Wichita, Kan., attorney are among 18 defendants who have been indicted by a federal grand jury in a more than $17 million, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
In addition to the federal indictment, the undercover operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives resulted in a $3.5 million civil forfeiture and a non-prosecution agreement that requires a Winnebago, Neb. company to pay a $300,000 penalty.
“When unscrupulous companies traffic in contraband cigarettes, they are stealing from the public through millions of dollars in lost tax revenue,” Dickinson said. “They also create an illegal and unfair advantage over legitimate businesses that follow the law. When they don’t pay the excise tax on their cigarettes, they are able to unfairly undercut the prices charged by off-reservation retailers.”
Craig Sheffler, 43, and his wife, Nicole Sheffler, 35, both of Independence, Harry Najim, 65, of Wichita, Teddy Frenchman, 39, of Winnebago, Neb., AJ’s Candy & Tobacco, LLC, and William F. Parry, 52, both of Irving, N.Y., Tara Sundown, 48, of Basom, N.Y., Philip Christ, 54, and Salvatore Tornabene, 44, both of Hamburg, N.Y., Gerald E. Barber, 67, of Virginia, Mousa Juma, 62, of Chesapeake, Va., T. Cameron Jones, 57, of Quilcene, Wash., Gholamreza “Reza” Tadaiyon, 50, of Weston, Fla., Payam Kheimehdooz, 42, of Miami, Fla., Mohsen Rostami, 47, of North Lauderdale, Fla., and David Bishop, 43, Mark Bishop, 39, and Piotr Hoffmann, 39, all of Montreal, Canada, were charged in a 44-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Aug. 12, 2013. That indictment was unsealed and made public today upon the arrests and initial court appearances of several defendants.
The federal indictment alleges that each of the defendants participated in a conspiracy to commit wire fraud and traffic in contraband cigarettes from July 2010 to Jan. 26, 2012.
According to the indictment, Craig Sheffler and Tadaiyon purchased $17,345,610 worth of contraband cigarettes from undercover ATF agents during the undercover operation. Approximately 620,600 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was approximately $8,148,420.
The Defendants
Craig Sheffler is the owner of Cheap Tobacco Wholesale, a cigarette wholesale business in Independence. Najim is a partner in the Adams Jones Law Firm, P.A., in Wichita. Najim was the attorney for Craig Sheffler and Cheap Tobacco Wholesale.
Tadaiyon owns Brand Name Connoisseurs, Corp., a business located in Florida. Neither Tadaiyon nor Brand Name Connoisseurs was a licensed New York tobacco wholesaler authorized to bring cigarettes into the state of New York. Payamkheimehdooz and Rostami worked as drivers for Tadaiyon. According to the indictment, Tadaiyon received approximately $1,280,000 in gross profit from the conspiracy.
Barber was president of the Seneca Cayuga Tobacco Company, an Oklahoma tobacco company that manufactures and distributes its own brands of cigarettes.
Parry owns and operates Wolf’s Run, a business that, among other things, operated a gas station, convenience store, and trucking transport business. Tornabene was a driver for Parry. Sundown operated Jan’s Smoke Shop, a reservation business that, among other things, operated a gas station and convenience store. AJ’s is a tobacco wholesaler located on a reservation. AJ’s owner is identified as an unindicted co-conspirator. None of these defendants or their businesses were licensed to bring cigarettes into the state of New York.
David Bishop is the owner of DKB Trade Concepts, a Canadian corporation located in Montréal, Québec. Mark Bishop and Hoffmann worked as drivers for David Bishop. According to the indictment, David Bishop received approximately $303,000 in wire transfers and approximately $133,000 in cash for his “brokerage fees” during the conspiracy. According to the indictment, Hoffmann received approximately $24,250 in wire transfers.
Jones owns and operates Manufacturer’s Production Exchange in Quilcene, Washington. According to the indictment, Jones received approximately $154,000 for his “brokerage fees” during the conspiracy.
Frenchman is the manager of warehouse operations for HCI Distribution, a tobacco distribution company. HCI Distribution Company is a subsidiary of Ho-Chunk, Inc., headquartered in Winnebago, Neb. (on the Winnebago Tribe reservation).
Juma owned and operated Juma Brothers, Inc., located in Portsmouth, Va., a business that distributed tobacco products and other items to retail businesses.
New York Excise Tax
New York, through the Department of Taxation and Finance, pre-collects an excise tax of $4.35 per pack of cigarettes from wholesalers for sales to Indian nations and tribes. Federal and New York state law requires that tax stamps be affixed to cigarette packages – prior to their sale to consumers – reflecting that the required state taxes have been paid.
Only licensed wholesalers may purchase unstamped cigarettes. This is done either directly through the cigarette manufacturer or through other wholesalers. Under New York State law, it is the obligation of state-licensed stamping agents, i.e. wholesalers, to prepay the excise tax and affix stamps on all cigarette packs.
Under state and federal law, tobacco wholesalers must accurately report the sales of cigarettes to the state(s) where the sale occurs. The state of Missouri requires tobacco wholesalers to accurately report the source of all cigarettes purchased and the disposition of those cigarettes. During the course of the conspiracy, the indictment says, in the reports filed by Cheap Tobacco Wholesale, Craig Sheffler falsely reported that the source of the cigarettes purchased from the ATF undercover operation was Cross Bridge LLC, a defunct Florida corporation.
The Conspiracy
Craig Sheffler made regular purchases of contraband cigarettes from undercover ATF agents in Kansas City. He in turn sold many of the cigarettes to Tadaiyon, whose drivers picked them up directly from the ATF warehouse in Kansas City, Mo. The rest of the cigarettes were shipped to New York, either from the undercover ATF warehouse or from the Cheap Tobacco Wholesale warehouse in Independence.
The indictment cites a series of purchases of cigarettes during the conspiracy, each transaction typically involving thousands of cartons and hundreds of thousands of dollars.
For example, the indictment alleges that on Sept. 29, 2011, Craig Sheffler purchased 15,576 cartons of cigarettes from ATF undercover agents for $580,131 in cash and a check for $33,000. During this transaction, Nicole Sheffler carried an orange bucket into the ATF undercover warehouse which contained two paper bags with approximately $400,000 in cash.
On another occasion, the indictment alleges that Craig Sheffler purchased 352 cases of contraband cigarettes from the ATF undercover agents on Nov. 22, 2011. Rather than paying for the cigarettes, the indictment says, Craig Sheffler outlined a breakdown of payments for the purchases of semi-trucks to be coordinated by his attorney, Najim. Craig Sheffler allegedly agreed to give Najim approximately $625,000 to purchase Peterbilt semi-trucks for the undercover agents. Craig Sheffler allegedly stated he would pay Najim’s law firm $9,000 and $60,000 in cash to Najim.
Parry ordered cigarettes directly, while Sundown and AJ’s placed orders for unstamped cigarettes through Christ and Barber. Barber (through Seneca Cayuga Tobacco Company) then placed orders for those unstamped cigarettes from Tadaiyon and Brand Name Connoisseurs. Tadaiyon would forward the order to David Bishop, who would e-mail the order for the unstamped cigarettes to Jones and to Craig Sheffler.
According to the indictment, through the end of Sept. 22, 2011, after the orders had been placed, Tadaiyon, Mark Bishop and Hoffmann picked up the unstamped cigarettes in Kansas City and transported them to Seneca Cayuga Tobacco Company in Oklahoma. From Seneca Cayuga Tobacco Company, the unstamped cigarettes were allegedly transported to Wolf’s Run, Jan’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York by Wolf’s Run or a common carrier.
After Sept. 22, 2011, according to the indictment, Tadaiyon, Mark Bishop, Hoffmann, Kheimehdooz and Rostami picked up the orders of unstamped cigarettes from the undercover ATF warehouse in Kansas City or at the Cheap Tobacco Wholesale warehouse in Independence, then transported them directly to HCI Distribution in Nebraska. Frenchman, at HCI Distribution, allegedly coordinated with HCI Logistics (another subsidiary of Ho-Chunk, Inc.) to have the unstamped cigarettes transported to Jan’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York.
Parry allegedly sold the unstamped, untaxed cigarettes at Wolf’s Run store. AJ’s and Parry allegedly sold the unstamped, untaxed cigarettes to other smoke shops on the reservations in New York. Sundown allegedly sold the unstamped, untaxed cigarettes at Jan’s Smoke shop.
Non-prosecution Agreement
In addition to the federal indictment, Dickinson also announced today that the U.S. Attorney’s Office in the Western District of Missouri has entered into a non-prosecution agreement with HCI Distribution, in which HCI Distribution acknowledges responsibility for its role in the conspiracy and agrees to take several actions; the U.S. Attorney’s Office will defer criminal prosecution and civil action.
Ho-Chunk, Inc., located in Winnebago, Neb., is a corporation operated by the Winnebago Tribe of Nebraska, a federally recognized Indian tribe. Ho-Chunk, Inc., is the parent company of HCI Distribution, also located in Winnebago, which claims to be one of the largest tribal cigarette and tobacco distributors in the United States, and HCI Logistics, a commercial transportation company in Omaha, Neb.
Under the terms of this agreement, HCI Distribution must pay a monetary penalty of $300,000 and take corrective actions. HCI Distribution must also withdraw its claim in the civil forfeiture case. HCI Distribution had claimed $221,850 plus the proceeds from the sale of the 102 cases of seized cigarettes.
Civil Forfeiture
Following the seizures that occurred as a result of the investigation, the U.S. Attorney’s Office started a civil forfeiture case naming the assets taken up to that point. On Oct. 23, 2012, the court entered a default order of forfeiture as to the following assets:
- $399,206.22 of the $599,206.22 seized from InTrust Bank account in the name of Cheap Tobacco Wholesale, LLC;
- $740,000.00 seized on Jan. 26, 2012;
- $18,260.00 seized on Jan. 26, 2012;
- $266,704.28 seized on Jan. 27, 2012 from Bank of Oklahoma in the name of Seneca-Cayuga Tobacco Company;
- More than 300 cases of seized cigarettes;
- 2009 Cessna T206H Stationair aircraft;
- Two 2012 Peterbilt 389 trucks;
- Two 2012 Peterbilt 386 trucks;
- $615,661 seized.
The seized cigarettes have been sold at auction for $532,500. The 2009 Cessna Aircraft has been sold for $450,000. The four trucks have been sold for the following amounts: $115,000; $115,000; $113,000; and $113,000.
The civil case has been stayed pending the resolution of the criminal case.
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 Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.Nixa Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Charles Williams, 28, of Nixa, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Aug. 28, 2012, federal indictment.
By pleading guilty today, Williams admitted that he used peer-to-peer file-sharing program on two laptop computers to download and distribute dozens of videos and photos of child pornography over the Internet from April 9 to Sept. 27, 2011.
According to today’s plea agreement, a Nixa police officer used a peer-to-peer file-sharing program to connect to Williams’ computer over the Internet. The officer located child pornography on the computer and obtained a search warrant for Williams’ residence. Officers executed the search warrant on Sept. 27, 2011, and seized two laptop computers, two cameras, two videogame consoles, 115 CDs/DVDs and a VHS tape. Among the files discovered on one of the laptop computers was a video of a 4-to-5-year-old child being raped by an adult. Williams was arrested on Sept. 27, 2011.
Investigators conducted an examination of Williams’ computers and found 52 incomplete or partially downloaded videos of child pornography, 29 saved videos of child pornography, eight videos of child pornography in the recycle bin and 13 images of child pornography.
Under federal statutes, Williams is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Nevada Man Pleads Guilty to $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Nevada, Mo., man has pleaded guilty in federal court to his role in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Bob True Beisly, III, 39, of Nevada, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, Aug. 6, 2013, to one count of wire fraud and one count of mail fraud.
In a separate but related case, Jeffrey Hobbs, 41, of Exeter, pleaded guilty on May 20, 2013, to wire fraud. Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Beisly and other individuals approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Beisly and others for the delivery of loads of grain, corn or feed that did not truly exist.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million. According to today’s plea agreement, Cargill’s losses associated with Beisly totaled approximately $559,616. Under the terms of his plea agreement, Beisly must pay a money judgment for that amount to the government.
Under federal statutes, Beisly 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 Patrick Carney. It was investigated by the FBI and the Missouri State Highway Patrol.
Camden County Man Indicted for Forced Sex TraffickingRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Camden County, Mo., man was indicted by a federal grand jury today on charges related to the forced sex trafficking of two women.
Joshua Kain Smith, 35, of Camden County, was charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment charges Smith with one count of sex trafficking and one count of attempted sex trafficking. The indictment alleges that Smith used force, threats of force, fraud and coercion to cause a person (identified as “FV 1” – Female Victim 1) to engage in prostitution, from which he benefitted financially, between Nov. 15, 2011, and March 15, 2012. The indictment also alleges that Smith attempted to use force, threats of force, fraud and coercion to cause a person (identified as “FV 2” – Female Victim 2) to engage in prostitution, from which he benefitted financially, between Dec. 1, 2010, and Nov. 15, 2011.
Smith is also charged with one count of transporting “FV 1” across state lines for prostitution and two counts of transmitting a threat. Smith allegedly threatened to kill “FV 2” on Nov. 8, 2011, and to kill the mother and brother of “FV 1” on Dec. 20, 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 Assistant U.S. Attorney Cynthia L. Cordes. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
Blue Springs Man Indicted for Producing Child Porn, ObscenityRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man was indicted by a federal grand jury today for producing child pornography and child obscenity that victimized three children.
Jeffrey Laurence Treta, 46, of Blue Springs, was charged in a six-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment charges Treta with two counts of producing child pornography.
Treta allegedly used a child victim (identified as “Jane Doe #1”) to produce child pornography on Jan. 19, 2013, and again on Jan. 29, 2013.Treta is also charged with two counts of producing child obscenity. Treta allegedly used another child victim (identified as “Jane Doe #2”) to produce child obscenity between May 1, 2012, and Jan. 29, 2013. Treta allegedly used a third child victim (identified as “Jane Doe #3”) to produce child obscenity between Jan. 1, 2012, and Jan. 29, 2013.
Today’s indictment also charges Treta with one count of possessing child pornography and one count of obstructing justice.
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 Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."