Western District of Missouri
Press releases recorded for this federal judicial district.
Joplin Woman Pleads Guilty to Disaster 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., woman pleaded guilty in federal court today to fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Amy Cherie Feagan, 28, formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 13, 2012 federal indictment.
Feagan admitted that she applied for disaster assistance in June 2011. On June 3, 2011, Feagan met a FEMA inspector at a tornado-damaged apartment building in Joplin. Feagan completed an inspection, claiming to the inspector that the apartment building was her primary residence and answering his questions regarding her “residence.” Based on those representations, FEMA authorized an $11,764 payment to replace the contents of her claimed residence as well as numerous household items for herself and her children.
Feagan admitted today, however, that she did not reside in that apartment building at the time of the disaster. She had previously resided at that apartment, but moved some time earlier. At the time of the Joplin tornado, Feagan resided in transitional housing in Springfield following her release from incarceration.
By pleading guilty, Feagan admitted that she knowingly and fraudulently made materially false, fictitious, and fraudulent statements and representations to FEMA in connection with her application for disaster assistance.
Under federal statutes, Feagan is subject to a sentence of up to 30 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 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.
Platte City Contractor 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 a Platte City, Mo., contractor has been sentenced in federal court for his role in a nearly $900,000 bid-rigging conspiracy that involved several contractors.
Tim Rowland, 45, of Platte City, was sentenced by U.S. District Judge Gary A. Fenner on March 30, 2013 to five years of probation and ordered to pay $298,765 in restitution.
On Oct. 19, 2012, Rowland pleaded guilty to his role in a conspiracy to commit mail fraud. 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 co-conspirators Christopher Grimsley, 43, of Overland Park, Kan., and JoDen Napper, 40, of Lenexa, Kan.
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, Grimsley and Napper agreed to rig bids in Rowland’s favor without the knowledge of Aimco or Cres Management.
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 Grimsley accepted approximately $538,340 in kickbacks from various contractors in the Kansas City area. In exchange for these kickbacks, Grimsley agreed to rig bids in favor of the contractors without the knowledge of Aimco.
Napper pleaded guilty to mail fraud and awaits sentencing. 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.
In separate but related cases, three more contractors have pleaded guilty to paying bribes in exchange for construction contracts and await sentencing.
Chris Childers, 43, of Olathe, Kan., pleaded guilty on Jan. 15, 2013 to conspiracy to commit mail fraud. 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.
Tom Villirillo, 49, of Olathe, Kan., pleaded guilty on Jan. 3, 2013 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 Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Villirillo’s favor without the knowledge of Cres Management. Among other things, Villirillo used his credit card to pay for hotel accommodations in Las Vegas for Grimsley and his wife in exchange for granting his bids to complete construction work.
Bernie Belcher, 56, of Olathe, Kan., pleaded guilty on Nov. 8, 2012 to participating in a conspiracy to commit mail fraud. 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 are being prosecuted by Assistant U.S. Attorney 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.Former Bolivar Clinic Physician Pleads Guilty to Illegally Dispensing NarcoticsRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former physician at a Bolivar, Mo., health clinic has pleaded guilty in federal court to illegally distributing prescription drugs.
Nolan Denny Crisp, 75, of Half Way, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, April 8, 2013 to the charge contained in a July 24, 2012 federal indictment.
“This former physician abused his position by handing out illegal prescriptions to so-called patients, including a girlfriend and clients he met in the parking lot,” said Dickinson. “His conduct was not only illegal, but as the federal investigation concluded, reckless, dangerous and life-threatening.”
Special Agent in Charge of the FBI Michael Kaste stated, “There is an expectation and trust of those within the health care profession, a trust that should not be compromised. There is no tolerance when medical professionals abuse their position to exploit patients and capitalize on those with addictions.”
Crisp was employed at Pomme de Terre Wellness Center (also known as the Bolivar Family Wellness Clinic and Northwoods Psychiatric Services, Inc.) in Bolivar from June 2009 through Nov. 10, 2010 to provide pain management and other services to patients.
By pleading guilty today, Crisp admitted that he wrote prescriptions for OxyContin, Oxycodone Hydrochloride, and Oxycodone-Aspirin for a purported patient with whom he was involved in a sexual relationship. The prescriptions were illegal because they were not in the usual course of professional practices and for a person who had no legitimate medical need for the prescriptions.
Current and former clinic employees expressed concerns about Crisp’s prescription-writing practices. For example, clinic staff noticed Crisp meeting people in the parking lot and giving them prescriptions, even though they were not being seen in the clinic. The clinic was getting so many patients claiming that their prescriptions were lost or stolen that they began requiring a police report. A nurse practitioner said word got out that Crisp was generous with narcotics prescriptions, and she would see patients parked across the street in a church parking lot waiting for him so they could get prescriptions. She also said that sometimes the clinic nurses would run a drug screen that revealed the patient was not taking the drugs being prescribed; they informed Crisp, but he continued writing prescriptions for the patient.
The federal investigation included reviewing overdose reports from Citizens Memorial Hospital, Crisp’s appointment schedule for the clinic, Crisp’s Medicaid billing records while he was at the clinic, information regarding prescriptions written by Crisp and filled at six major pharmacies in Bolivar, and information from the Polk County Coroner. During the period that Crisp worked at the clinic, there were 96 overdose incidents at the hospital, 29 of whom were connected to his care. During that same period, six of the patients who died from overdoses were connected to his care.
The government retained an internal medicine physician specializing in pain management to review patient files. The physician was provided with charts for certain patients who were known to be drug abusers or who had overdosed. In the physician’s report, he provided background regarding the standard of care for the use of controlled substances in the treatment of pain. He also provided a detailed analysis of Crisp’s treatment of 20 patients. For the 20 patients, his opinion was that Crisp’s treatment was reckless, dangerous, life-threatening, and inconsistent with sound medical practice.
Under federal statutes, Crisp is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Tom Larson and Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, the Bolivar, Mo., Police Department and the Missouri Medicaid Fraud Control Unit.
Springfield Men Sentenced for Stolen Check Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Springfield, Mo., men have been sentenced in federal court for their roles in a conspiracy to alter stolen checks and pass them at various retailers in the Springfield area.
Maurice Suton Anton Sayles, also known as “Ish” Washington, and his twin brother, Martinus Antuan Sayles, both 36 and both of Springfield, were each sentenced by U.S. District Judge Greg Kays on Wednesday, April 3, 2013 to seven years and one month in federal prison without parole. The court also ordered Maurice Sayles to pay $3,303 in restitution; Martinus must pay at least $1,838 in restitution.
Maurice Sayles, who admitted that he was the leader of the criminal conspiracy that involved at least five participants, pleaded guilty on Oct. 11, 2012. Martinus Sayles pleaded guilty to his role in the conspiracy on Aug. 27, 2012.
Martinus Sayles acquired stolen checks from an unidentified person in the Kansas City, Mo., area. Martinus and Maurice Sayles then altered the checks by cutting out digits from the routing and account numbers, and replacing them with other digits using glue and a hammer. They passed the forged checks at various retailers throughout the Springfield area and recruited others to pass the forged checks for them.
Sometimes the Sayles brothers and those they recruited used false identification to pass the forged checks. Maurice Sayles created the false identifications using a label maker to alter the existing identification card or driver’s license of the individual passing the check to match the name of the account holder on the check. The Sayles brothers, with the assistance of others they recruited, returned the merchandise they purchased for a cash refund.
Many times, the Sayles brothers facilitated their return of the merchandise by altering the purchase receipts to appear as though the purchase had occurred more than 10 days before the return. This was done to circumvent the 10-day return policy most stores had in place, which required customers paying by check to wait at least 10 days before returning merchandise in order to ensure the check had cleared before a refund was issued.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Springfield, Mo., Police Department and the U.S. Secret Service.
Albany Man Pleads Guilty to $119,950 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albany, Mo., man pleaded guilty in federal court today to defrauding an elderly Maryville, Mo., couple.
David J. McConkey, 42, of Albany, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs on Thursday, April 4, 2013, to a federal information that charges him with wire fraud.
By pleading guilty today, McConkey admitted that he defrauded a Maryville husband and wife in a scheme that lasted from April 2011 to April 2012. McConkey told the couple that he was aware of an incident involving their adult daughter that allegedly occurred approximately 28 years ago in the state of Iowa. McConkey told them that if they would pay him $119,950 he would keep their daughter from going to prison. This representation was false, and known by McConkey to be false. The Maryville couple gave McConkey a $119,950 cashier’s check, which he used for his own personal benefit.
Under federal statutes, McConkey 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 First Assistant U.S. Attorney David M. Ketchmark. It was investigated by the FBI.
State Employee Pleads Guilty to $158,000 Fraud Scheme to Pay Refunds to Springfield BusinessRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an employee of the Missouri Department of Revenue pleaded guilty in federal court today to fraudulently paying $158,000 in refunds to a Springfield business owner, who has also pleaded guilty to his role in the scheme, and others.
Roselly Delores Otto, 31, of Meta, Mo., waived her right to a grand jury and pleaded guilty today before U.S. Magistrate Judge David P. Rush to a federal information that charges her with two counts of mail fraud. James Edward Bruhn, 46, of Springfield, waived his right to a grand jury and pleaded guilty on March 13, 2013, before U.S. District Judge Richard E. Dorr to a federal information that charges him with one count of mail fraud.
Otto and Bruhn evenly split $127,905 in proceeds from the fraud scheme between April 2011 and September 2012. Otto also received approximately $30,000 in a separate, but similar, fraud scheme between January 2009 and September 2012. Otto worked for the Taxation Division of the Missouri Department of Revenue. Bruhn operated a lawn care business known as EB Lawncare in Springfield.
As a part of his business, Bruhn would submit motor fuel refund claims to the Taxation Division of the Missouri Department of Revenue. Motor fuel that is used for certain non-highway purposes is exempt from the state fuel tax and a refund may be claimed by the consumer. Part of Otto’s responsibilities included approving or declining motor fuel refund claims received by her division.
Bruhn admitted that he submitted refund documents knowing that his claims that fuel was purchased and that the fuel was used for statutorily exempt purposes was entirely false and fraudulent. Otto admitted that she received the fraudulent refund claims from Bruhn, and even though she knew that the information provided in the documents was entirely false, approved Bruhn’s refund claims. Otto caused refund checks to be mailed to Bruhn. Bruhn cashed his refund checks and mailed a portion of the proceeds back to Otto. The Missouri Department of Revenue detected the fraud, alerted law enforcement authorities and cooperated in the investigation.
Under federal statutes, Otto 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. Bruhn 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. 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 Patrick Carney. It was investigated by the U.S. Postal Inspection Service and the Missouri Department of Revenue Compliance and Investigation Bureau.Carl Junction Man Sentenced to 12 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man was sentenced in federal court today for receiving, distributing and possessing child pornography.
Jason Hill, 27, of Carl Junction, was sentenced by U.S. District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Hill to pay restitution to one of his victims, who is depicted in the images of child pornography. If paid within 30 days, Hill must pay $3,000 in restitution, but if paid after 30 days, he must pay $5,000 in restitution.
On Sept. 27, 2012, Hill was convicted following a three-day trial of one count of receiving and distributing child pornography and one count of possessing child pornography.
An officer with the Southwest Missouri Cybercrimes Task Force, while conducting an investigation, discovered that Hill was receiving and distributing child pornography over the Internet through peer-to-peer, file-sharing software on his computer. The task force officer accessed the shared folder on Hill’s computer and obtained 773 files. Approximately 551 of the file titles indicated that they were pornographic. Approximately 266 of the file titles pertained to child pornography. Of the 266 file titles, 25 files had been identified in previous investigations as containing known child pornography. The task force officer downloaded 10 of these 25 images of child pornography from Hill’s computer.
Officers executed a federal search warrant and seized four computers and various computer media from Hill’s residence. Investigators found three videos that portrayed the sexual abuse of children under the age of 14 and four additional images of child pornography (besides those images that were downloaded by the task force officer). There was forensic evidence that the computers had once contained additional images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Ami Miller. It was investigated by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Sikeston Man Sentenced for Lebanon Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sikeston, Mo., man was sentenced in federal court today for robbing a Lebanon, Mo., bank.
Larry Gene Enloe, 52, of Sikeston, was sentenced by U.S. District Judge Greg Kays to five years and three months in federal prison without parole.
On Sept. 26, 2012 Enloe pleaded guilty to bank robbery. Enloe admitted that he stole $2,350 from Commerce Bank on Aug. 21, 2012.
According to court documents, Enloe entered Commerce Bank, 224 W. Commercial St., Lebanon, at about 3:15 p.m. on Aug. 21, 2012. Enloe approached the teller counter and presented a bank robbery note (written on the back of a Walmart receipt) to the teller. The note read, "10 seconds. Put all your money in the bag now. No one gets hurt."
The teller handed Enloe $2,350 and he put the cash in a white plastic bag and walked out of the bank.
While conducting a search of the area, Lebanon police officers located Enloe near a local bus station. He was questioned and transported to the police station where he was searched; officers found $2,350 hidden in his socks.
This case was prosecuted by Assistant U.S. Attorney Steven Mohlhenrich. It was investigated by the Lebanon, Mo., Police Department and the FBI.Illinois Business Owner Indicted for $3 Million Scheme to Sell Foreign Versions of BotoxRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Alton, Ill., business owner was indicted by a federal grand jury today for distributing more than $3 million worth of foreign Botox and Juvederm in the United States.
Christopher Carstens, 47, of Alton, and his company, Orthopaedic Solutions, Inc., were charged in a nine-count indictment returned by a federal grand jury in Kansas City for violations of the Federal Food, Drug and Cosmetic Act.
Today’s indictment alleges that Carstens and Orthopaedic Solutions distributed approximately 5,879 units of a foreign version of the prescription drug Botox and a foreign version of the prescription device Juvederm through their sales representatives to doctors or other health care professionals in the United States between 2008 and 2011, at a retail value of approximately $3,058,183.
Juvederm is a clear, biodegradable gel implant that is injected into the skin to correct wrinkles and folds.
Carstens and Orthopaedic Solutions are charged with one count of mail fraud because they executed their scheme by distributing foreign Botox (which the FDA had not approved for distribution in the United States) via FedEx and attempted to hide their fraudulent scheme from doctors and health care professionals. Carstens and Orthopaedic Solutions are charged with one count of distributing an unapproved new drug across state lines because they had not received approval to import or distribute the foreign version of Botox in the United States. Carstens and Orthopaedic Solutions are charged with one count of distributing a misbranded drug across state lines because the foreign Botox labeling failed to bear the statement “Rx only.”
Carstens and Orthopaedic Solutions are charged with three counts of distributing an adulterated device across state lines because the foreign versions of Juvederm lacked FDA approval for distribution in the United States. Carstens and Orthopaedic Solutions are charged with three counts of distributing a misbranded device across state lines because the Juvederm 3 labeling failed to bear adequate directions for use or appropriate warnings.
Today’s indictment also contains a forfeiture count, which would require Carstens and Orthopaedic Solutions to forfeit to the government any property derived from the proceeds of the scheme, including a money judgment of $3,058,183.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigation.Battlefield Man Indicted for $785,200 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Battlefield, Mo., man has been indicted by a federal grand jury for a $785,200 scheme to defraud his employer.
Travis E. Honaker, 35, of Battlefield, was charged in a 25-count indictment returned by a federal grand jury in Springfield on Tuesday, April 2, 2013.
The federal indictment alleges that Honaker engaged in a scheme to defraud his employer, Success Leasing, Inc. (or its affiliated company Prime, Inc.), in Springfield, by causing 109 wire transfers totaling $785,200 to be made to his bank accounts from the sale of used vehicles and equipment between August 2007 and December 2011.
Honaker is charged with 12 counts of wire fraud and 13 counts of money laundering.
According to the indictment, Honaker worked for Success Leasing and Pedigree Truck Sales, affiliated companies of Prime. He sold used equipment, including auxiliary power units (APUs) and used trucks that had previously been leased by Success to others. After the lease period expired and the trucks and equipment were returned to the company, Honaker was tasked with managing their sale to others.
Honaker allegedly began charging unauthorized “finder’s fees” or deposits to purchasers of Success’s used trucks in August 2007. Honaker was not authorized to charge finder’s fees or deposits. He never informed Success that he was collecting a finder’s fee or deposit for the trucks he was selling, the indictment says, and he did not remit the money back to Success.
Honaker allegedly created T&H Consulting, LLC, in January 2011 for the purpose of receiving these finder’s fees and deposits. According to the indictment, the purchasers wired funds to this account.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney. Gary Milligan. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation and the Springfield, Mo., Police Department.Business Owner Pleads Guilty to $1.5 Million Wire Fraud SchemeRead the Press Release
KANSAS CITY, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a business that provided rehab loans for distressed properties pleaded guilty in federal court today to defrauding his firm’s lender in a $1.5 million wire fraud scheme.
JonPaul “JP” Edward Sauer, 41, of Olathe, Kan., waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges him with wire fraud.
Sauer is the owner of Peak Management in Lenexa, Kan., which provides capital acquisition, financial consulting and real estate investment services. Sauer was formerly the chief executive officer, co-owner and co-manager of Flatirons Financial, Inc., an acquisition and improvement lender that made rehabilitation loans on distressed properties, primarily in Kansas City, Mo. Flatirons Financial was acquired by an unrelated third-party entity in late 2007. From November 2007 until August 2008, when he was terminated, Sauer continued in his management positions.
By pleading guilty today, Sauer admitted that he engaged in a wire fraud scheme from Feb. 1, 2007, to Feb. 14, 2008 in which Wells Fargo Foothill, Inc., suffered losses of approximately $1,500,900.
According to today’s plea agreement, Flatirons Financial made draws on its line of credit with Wells Fargo Foothill of approximately $26.6 million during the period of the fraud scheme. Flatirons Financial used those funds to make loans to rehabilitate distressed properties in the Kansas City, Mo., area. Wells Fargo Foothill relied on borrowing base certificates and supporting documents that were materially false and fraudulent in allowing Flatirons Financial to continue to make draws on its line of credit.
Sauer admitted to engaging in several practices that were contrary to the loan servicing agreement with Wells Fargo Foothill in order to conceal the delinquent status of 129 loans. Sauer caused Flatirons Financial to make payment entries in its loan servicing software even though no payment was received. Often without the knowledge of its borrowers, Sauer caused Flatirons Financial to defer payments on loans that were approaching 75 days past due, adding the amount of the delinquent payments to the loan balance in such a manner that it appeared actual payments had been made. Often without the knowledge of the borrowers, Sauer caused Flatiron Financial to use construction escrow funds to make it appear that the borrowers’ delinquent loans were current, at times transferring the escrow funds for one loan of a borrower to another loan of the same or an affiliated borrower. Sauer caused Flatirons Financial to establish second mortgages for borrowers specifically to use second mortgage funds to make payments on delinquent first mortgages.
As a result of the false payment entries and payment histories, Sauer caused Flatirons Financial to prepare and submit borrowing base certificates and supporting documents at least weekly to Wells Fargo Foothill which were materially false and fraudulent. The borrowing base certificates misrepresented that loans made by Flatirons Financial were “eligible” when in fact the loans were in delinquent status, non-performing, not in good standing, and not “eligible” loans.
Under federal statutes, Sauer is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Senior Litigation Counsel Linda Parker Marshall. It was investigated by the FBI.
Kansas Woman Sentenced for $561,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson United States Attorney for the Western District of Missouri, announced that a Leavenworth, Kan., woman was sentenced in federal court today for a bank fraud scheme in which she embezzled more than $561,000 from her North Kansas City, Mo., employer.
Paula A. Cathey, 53, of Leavenworth, was sentenced by U.S. District Judge Dean Whipple to three years and five months in federal prison without parole. The court also ordered her to pay $556,935 in restitution.
On Oct. 10, 2012 Cathey pleaded guilty to 15 counts of bank fraud. Cathey was employed from Sept. 7, 1997, through March 31, 2011, as the controller for Mega Industries Corp., a heavy highway and general contractor construction company in North Kansas City with approximately 25 employees.
Cathey admitted that she embezzled approximately $561,552 as a result of her fraud scheme. Cathey obtained checks from the office of a subordinate, wrote unauthorized checks to herself and, without the knowledge or consent of the company presidents, forged their signatures on the checks. Cathey deposited the checks in her personal bank account and used the money largely for gambling.
In order to conceal her fraud, Cathey manipulated the company’s ledgers and created false accounting entries. Cathey was the first person to get the mail; when monthly bank statements came in the mail, she removed them and destroyed most of them.
This case was prosecuted by Senior Litigation Counsel Linda Parker Marshall. It was investigated by the FBI.
Fulton Man Sentenced for Bank Robbery, Admits Robbing Five BanksRead the Press Release
JEFFERSON CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man was sentenced in federal court today for bank robbery after admitting that he had robbed banks in Sedalia, Chillicothe, Cuba, Moberly and Rolla, Mo.
John David Farnell, 61, of Fulton, was sentenced by U.S. District Judge Brian C. Wimes to five years and 10 months in federal prison without parole. This sentence will be served concurrently with a federal prison sentence of 13 years and six months in a separate bank robbery case that was prosecuted in the Eastern District of Missouri.
On Jan. 7, 2013 Farnell pleaded guilty to stealing $11,540 from Excel Bank in Sedalia, Mo., on Aug. 10, 2009. Farnell entered the bank carrying a green gym bag in his left hand and immediately approached a teller. He set the bag on the counter, retrieved a black handgun that had a long barrel and wooden grip, pointed it at the teller and instructed her not to make a sound. He told the teller to give him twenties, fifties and hundreds. The teller pulled the bills out of her drawer and put them on the counter. Farnell instructed the teller not to make a sound or move again, and then walked down to another window.
Farnell approached a second teller counter. He again placed the bag on the counter, displayed the gun, and stated, “I want all your tens, twenties, fifties, hundreds.” The second teller gave him all the loose bills, and Farnell asked, “Is that all?” The second teller responded, “No, I’m sorry,” and gave him the bundled tens and the twenties. Farnell exited the bank through the front doors, got into a white minivan and left.
On April 29, 2010, the First Community National Bank in Cuba was robbed. At approximately 11 a.m., a Missouri State Highway Patrol trooper stopped Farnell, who was traveling in a van that matched the description of the suspect vehicle involved in the bank robbery. During a search of the van, a Ruger .357 magnum revolver was recovered, as well as U.S. currency.
Farnell admitted to law enforcement officers that he committed the robbery in Cuba and the robbery in Sedalia, as well as robbing BTC Bank in Chillicothe on Feb. 24, 2012. Farnell stated that he committed the robberies because of financial reasons, and admitted that he used the .357 magnum revolver recovered from his van during all of the robberies.
In a separate case, Farnell was sentenced in the Eastern District of Missouri on March 9, 2012, to 13 years and six months in federal prison without parole. Farnell pleaded guilty in that case to robbing First Community National Bank in Cuba, Commerce Bank in Moberly (on March 13, 2009) and Town & Country Bank in Rolla (on Dec. 18, 2009). He also pleaded guilty in that case to one count of possessing a firearm in connection with a crime of violence.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Missouri State Highway Patrol, and the police departments of Sedalia, Chillicothe, El Dorado Springs, Rolla and Cuba, Mo.Professional Gambler Charged with over $481,000 in Illegal Financial Transactions at Ameristar CasinoRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a professional gambler from New Jersey has been charged in federal court with illegally structuring financial transactions, including cashing in hundreds of thousands of dollars in chips at a local casino.
Richard Dougherty, 52, of Linwood, N.J., was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo., with structuring financial transactions. Dougherty was arrested at the Ameristar Casino in Kansas City, Mo., on the evening of Thursday, March 28, 2013, following the filing of the criminal complaint earlier that day. He appeared in court today and was released on bond.
According to an affidavit filed in support of the criminal complaint, Dougherty won nearly $700,000 during dozens of visits to Ameristar over the past year. Dougherty is a professional gambler and a member of the Tom Hyland Card Counting team, one of the most successful black jack teams in America. The Hyland Team is most known for their expertise as card counters and passed on their skills to many team members over the years. Hyland team members, both full-time and part-time players, are scattered across the country. The team at one point had grown to 30 or 40 people. Playing as a team rather than an individual helps to smooth over the losses, because if one person has a bad day then it’s usually smoothed out by the wins of teammates.
Because the Hyland team has been counting cards for so long they are recognized at many casinos. The team has used disguises throughout the years at various casinos. However, at present, disguises are less important as there are laws, specifically in Atlantic City and in Missouri, to prevent casinos from barring card counters.
Dougherty is charged with structuring financial transactions at Ameristar in order to avoid federal reporting requirements. Federal law requires casinos to file currency transaction reports with the federal government for each transaction (either cashing in or cashing out) of $10,000 or more. These regulations also require that multiple transactions be treated as a single transaction if they are conducted by, or on behalf of, the same person, and they total more than $10,000 during one business day. It is illegal for an individual to structure financial transactions in such a way that the casino fails to file the required report.
The criminal complaint alleges that Dougherty purchased at least $166,380 in chips with cash in 11 structured transactions at Ameristar, and that he cashed in chips for $315,075 in 32 separate structured transactions from Feb. 16, 2012 to March 27, 2013.
Dougherty made at least 60 visits to Ameristar between Feb. 16, 2012 and March 27, 2013. During this time period, the affidavit says, Dougherty won at least $697,892 and lost $382,880, netting him $315,012 in casino winnings. Not one time during his play at the Ameristar did Dougherty cash out for more than $10,000, according to the affidavit. Dougherty allegedly structured these currency transactions in amounts less than $10,000 to avoid triggering the filing of a currency transaction report.
The affidavit also refers to Dougherty’s gambling activities at casinos in Powhattan, Kan.; Atlantic City, N.J.; Las Vegas, Nev.; Metropolis, Ill.; Elizabeth, Ind.; Valley View, Calif.; West Lake, La.; and Morton, Minn. Dougherty has allegedly used multiple aliases at a large number of the casinos he has played. According to the affidavit, casinos have filed 126 currency transaction reports on Dougherty since 1996.
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 Curt Bohling. It was investigated by IRS-Criminal Investigation.Lee's Summit Man Sentenced to 15 Years for $1 Million Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was sentenced in federal court today for his role in a $1 million conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Clark L. Vanosdoll, 45, of Lee’s Summit, was sentenced by U.S. District Judge Gary A. Fenner to 15 years in federal prison without parole. The court also ordered Vanosdoll to forfeit to the government $100,000, which represents the portion of the proceeds of the drug-trafficking conspiracy for which he was held responsible.
On May 18, 2012, Vanosdoll pleaded guilty to participating in a conspiracy to distribute methamphetamine from Jan. 1, 2006 to May 31, 2010 and to being a felon in possession of a firearm.
Vanosdoll admitted that he was in possession of a loaded Lorcin .22-caliber pistol when he was arrested on Dec. 20, 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. Vanosdoll has prior felony convictions for manufacturing a controlled substance and possessing a controlled substance.
Vanosdoll is the sixth defendant to be sentenced after pleading guilty to participating in the drug-trafficking conspiracy. Anthony J. Petty, 32, address unknown, was sentenced to 15 years in federal prison without parole. Jeffrey S. Lewis, 46, and Roxie A. Boling, 30, both of Kansas City, Mo., were each sentenced to 10 years in federal prison without parole. Michael S. McCollum, 62, of Kansas City, Mo., was sentenced to seven years in federal prison without parole. Mitzi S. Damron, 39, of Kansas City, Mo., was sentenced to three years and one month in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Lee’s Summit, Mo., Police Department, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the Drug Enforcement Administration, the U.S. Secret Service, and the North Kansas City, Mo., Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations.
KC Man Sentenced to 17 Years for $809,000 Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for his role in an $809,000 conspiracy to distribute methamphetamine.
Luis Hernandez, 51, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner on Thursday, March 28, 2013 to 17 years in federal prison without parole.
On July 2, 2012, Hernandez pleaded guilty to participating in a conspiracy to distribute methamphetamine between Jan. 1, 2008 and Aug. 11, 2011. Hernandez admitted that he was supplied with more than seven kilograms of methamphetamine by co-defendant Jesus Roberto Zamudio Beltran, 36, a Mexican national with no known address. Hernandez admitted that he distributed the methamphetamine to co-defendants Jerry Dean Matlock, 57, of Cherryvale, Kan., Aaron Benson, 50, address unknown, and David M. Russell, 59, address unknown, on numerous occasions. Beltran, Matlock, Benson and Russell have also pleaded guilty and await sentencing.
All of the co-defendants must forfeit to the government $809,200, which represents the proceeds of the drug-trafficking conspiracy, for which they are jointly and severally liable. Hernandez must also forfeit to the government the property at 5228 E. Truman Rd., Kansas City, where his car detailing business was located, and his Ford F-150 pickup. Co-defendants must also forfeit to the government six residential properties, a Cadillac Escalade and a 1956 Chevrolet Bel Air.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man Sentenced for Northland Bank RobberyRead the Press Release
KANSAS CITY, Mo. - Tammy Dicksinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing the Bank of America.
Rolando Winters, 25, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to five years and 10 months in federal prison without parole.
On Nov. 7, 2012 Winters pleaded guilty to stealing $5,863 from the Bank of America at 661 N.W. 55th Terr., Kansas City, Mo. Co-defendants Edward L. Green, 24, and Robert Lowe, 27, both of Kansas City, have also pleaded guilty and await sentencing.
Winters and Lowe entered the bank on July 19, 2012 in order to rob it while Green, the getaway car driver, positioned the vehicle to pick them up after the robbery. Upon entering the bank, Winters announced that “This is a robbery” and demanded money from a teller. Winters told the teller that her life depended on it and to move quicker. Winters kept his hand in his waistband and the teller feared that he may have a gun. Lowe took money from another teller while Winters took money from the first teller. Lowe and Winters then fled from the bank.
According to court documents, law enforcement officers had been conducting surveillance on Green, Lowe and Winters as the men were apparently casing several banks in North Kansas City, Mo., and in Kansas City-North. When Lowe and Winters ran out of the bank, law enforcement officers ordered them to stop. Green was arrested without incident but Lowe and Winters continued to run around the apartment complex. They ran into an undercover law enforcement truck around the corner of a building and were taken into custody. Winters was transported to North Kansas City Hospital for treatment of injuries he received from running into the vehicle.
This case is being prosecuted by Assistant U.S. Attorney Bruce Clark. It was investigated by the FBI.Iowa Man Sentenced for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Iowa man was sentenced in federal court today for the armed robbery of National Bank of Kansas City.
Troy John Milani, 45, of Iowa, was sentenced by U.S. District Judge Beth Phillips to eight years and nine months in federal prison without parole.
On Oct. 25, 2012 Milani pleaded guilty to using a weapon to steal $2,330 from National Bank of Kansas City, 9750 N. Ash, Kansas City, Mo.
Milani admitted that he walked into the bank on April 2, 2012 and placed a note on a teller counter. Milani pointed what appeared to be a handgun at the teller and said, “Give me your money now!” The note contained the message: “You have 30 seconds to get 3500 counted out to me. If you fail, I start shooting. The Clock’s ticking.”(sic) As the teller reached into the drawer to get the money, Milani repeatedly said, “More, More, More!” After taking the money, Milani fled from the bank.
Police officers stopped Milani’s vehicle a short time later at the intersection of I-35 and Parvin Road, and he was arrested. Officers recovered $2,330 from his front pocket. Milani told police officers that he robbed the bank with a plastic toy gun that he stole earlier that same day from Walmart. Milani stated that he threw the plastic gun out of his car window.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Floyd A. Evans, 37, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Evans was sentenced as an armed career criminal due to his prior felony convictions for violent offenses.
Evans pleaded guilty today to being a felon in possession of a firearm. Evans was arrested on Nov. 8, 2011, on a probation violation warrant. When officers took him into custody at his residence, they found a loaded Norinco 7.62x39-caliber SKS rifle under a mattress.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition. Evans has three prior felony convictions for possession of a controlled substance and two prior felony convictions for domestic assault.
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.Guatemalan Natioanl Pleads Guilty to $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 that a Guatemalan national pleaded guilty in federal court today to his role 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.
Luis Adalberto Felipe-Lopez, 30, a citizen of Guatemala who was unlawfully in the United States and resided in Mt. Olive, N.C., pleaded guilty before U.S. District Judge Gary A. Fenner to his role in the conspiracy as well as to aggravated identity theft.
Felipe-Lopez participated in a conspiracy from November 2009 to January 2012 to transport illegal aliens, to unlawfully produce identification documents, to unlawfully transfer another person’s identification and to commit Social Security fraud. The government contends that Felipe-Lopez is a leader or manager of the conspiracy.
Felipe-Lopez admitted that he transported illegal aliens between St. Joseph and North Carolina. During the conspiracy, thousands of illegal aliens traveled from across the United States to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. Felipe-Lopez admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others.
It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. 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.
Felipe-Lopez is among 11 co-defendants who have pleaded guilty.
Deborah J. Flores, 47, and her children, Jessica M. Gonzalez, 22, Sara M. Gonzalez, 21, Christina Michelle Gonzalez, 24, and Stephen E. Vanvacter, 25, all of St. Joseph, as well as Jon L. Grippando, 25, of Atkins, Ark., formerly of St. Joseph, have also pleaded guilty to their roles in the conspiracy. Flores also pleaded guilty to aggravated identity theft. They 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.
Flores and her children 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. Jessica Gonzalez was sentenced to three years of probation.
Nelson Dariseo Bautista-Orozco, 27, a citizen of Guatemala who is unlawfully present in the United States and resided in Carthage, Mo., and Julio Cesar Llanas-Rodriguez, 38, and Martin Alejandro Llanas-Rodriguez, 30, both of whom are citizens of Mexico unlawfully present in the United States and resided in San Antonio, Texas, pleaded guilty to their roles in the conspiracy and to aggravated identity theft. Ranfe Adaias Hernandez-Flores, 23, a citizen of Guatemala who is unlawfully present in the United States and resided in in Carthage, pleaded guilty to his role in the conspiracy.
Under federal statutes, Felipe-Lopez is subject to a sentence of up to five years in federal prison without parole for conspiracy, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney 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, the U.S. Department of State Bureau of Diplomatic Security.Blue Springs Couple, KCMO Residents among 20 Indicted for $814,000 PCP, Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Blue Springs husband and wife and 13 Kansas City, Mo., residents are among 20 defendants who have been indicted by a federal grand jury for their roles in an $814,000 conspiracy to distribute PCP, cocaine and crack cocaine.
Walter Sorrells, 36, and his wife Bettie Sorrells, 36, both of Blue Springs; Reginald Marchbanks, 31, his brother, Parish Marchbanks, 28, Keith Williams, 39, Joey Frazier, 31, William Chaney, 25, Ronald Washington, 68, John Hicks, 36, Michael Harbin, 27, Jarell Mayberry, 29, Antonio Robertson, 35, Charles Littlejohn, 42, Maurice McCrary, 24 or 25, and Brett Stanley, 40, all of Kansas City, Mo.; Joseph Marshall, 30, of Kansas City, Kan.; Stephon Williams, 29, of Lynwood, Calif.; Vincent Hart, 39, and Arin Lamar Taylor, 31, both of Fontana, Calif.; and Colette Douglas, 36, of Grand Prairie, Texas, were charged in a two-count indictment that was returned under seal by a federal grand jury on March 13, 2013. The indictment was unsealed and made public today upon the arrests and initial court appearances of most of the defendants.
The federal indictment alleges that each of the co-defendants participated in a conspiracy to distribute one kilogram or more of PCP, 500 grams or more of cocaine and 280 grams or more of crack cocaine between Jan. 1, 2007 and March 13, 2013.
According to the indictment, at least 10 law enforcement-controlled purchases of PCP, cocaine and crack cocaine were conducted with at least five of the defendants. At least 10 arrests or searches of co-conspirators occurred where PCP, cocaine or crack was recovered, the indictment says, and on multiple occasions during the conspiracy, defendants were found in possession of hundreds or thousands of dollars in cash, with no known legitimate income.
The indictment also alleges that each of the co-defendants participated in a money-laundering conspiracy during that time. They allegedly conducted financial transactions that involved the proceeds of illegal drug trafficking. Cash and other items obtained from drug sales were used to purchase additional drugs for sale, the indictment alleges, and those items were taken in payment of drug debts and exchanged for additional drugs, which promoted the drug-trafficking conspiracy.
The indictment contains a forfeiture allegation, which would require all of the co-defendants to forfeit to the government $814,000, which was received in exchange for the unlawful distribution of PCP, cocaine or crack cocaine. According to the indictment, that is based upon a conservative street price of $200 per ounce of PCP (3,099 ounces distributed), $1,000 per ounce of cocaine (129 ounces distributed) and $1,100 per ounce of crack cocaine (60 ounces distributed).
The forfeiture allegation would also require Reginald Marchbank to forfeit his 2002 BMW and $9,280, which was seized by Kansas City, Mo., police officers following his arrest. Littlejohn would be required to forfeit his 2003 Cadillac, which he used to distribute PCP. Williams would be required to forfeit $4,500 of drug proceeds. Stanley would be required to forfeit his residence, which the indictment says was used extensively during the conspiracy for the distribution and storage of controlled substances.
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 Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI and IRS-Criminal Investigation.Former Bookstore Manager Pleads Guilty to 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 pleaded guilty in federal court today to embezzling more than $1.1 million by pocketing the money from the school’s textbook buyback program.
“MSU’s former bookstore manager engaged in a 10-year-long scheme of theft and deceit,” Dickinson said. “He repeatedly abused his position to exploit weaknesses in the university’s accounting system and steal more than $1.1 million. MSU, to its credit, has corrected those weaknesses and fully cooperated with our investigation.”
Mark Brixey, 48, of Ozark, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with 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.
Penalties
Under federal statutes, Brixey is subject to a sentence of up to 43 years in federal prison without parole, plus a fine and an order of restitution. Brixey must forfeit to the government $1,163,237, which represents the proceeds of the wire fraud scheme, and a number of certificates of deposit that were purchased with proceeds from the fraud scheme. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation, the Springfield, Mo., Police Department and the Greene County, Mo., Prosecuting Attorney.
Medical Clinic Director, CEO Plead Guilty to Health Care Fraud, False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the married owner/director and chief executive officer of a Kansas City, Mo., medical clinic pleaded guilty in federal court today to health care fraud and filing a false tax return.
Carol Ann Ryser, 76, and Michael Earl Ryser, 68, both of Mission Hills, Kan., pleaded guilty before U.S. District Judge Greg Kays to the charges contained in a June 26, 2012 federal indictment.
Carol Ryser owned Health Centers of America-Kansas City, LLC (HCA), a medical clinic in Kansas City, Mo., that was closed yesterday as part of today’s plea agreement. HCA purported to specialize in the diagnosis and treatment of chronic diseases such as Lyme disease, chronic fatigue syndrome, fibromyalgia, and other auto immune diseases.
Carol Ryser, who was a medical doctor and the clinic’s medical director, surrendered her medical license today as a condition of her plea agreement. Carol Ryser may never again seek licensing to practice medicine in the United States and she may never be involved as an owner or employee (or in any other capacity) with any medical clinic, hospital or other health care provider. Michael Ryser was the CEO, chief administrator and vice-president.
Health Care Fraud
By pleading guilty today, the Rysers admitted that they engaged in fraudulent billing by “upcoding” and falsifying claims submitted to insurers (including Blue Cross Blue Shield, Cigna, United Healthcare and others, as well as government programs such as Medicare and Tricare) in an effort to be paid more than the amount to which HCA was entitled.
The Ryser’s scheme included: (a) billing for physician office visits when Carol Ryser was out of town; (b) billing for physician office visits when Carole Ryser had little or no involvement with the patient; (c) billing for physician office visits when the patient contact was by telephone call; (d) billing for physician-supervised services when no physician was on duty at the clinic; and (e) improperly billing for consultation services.
The federal indictment describes six variations of billing fraud and includes tables of claims demonstrating each type of billing fraud. For those claims specifically included in the indictment, the total amount billed on those claims was $359,168. The total amount that was actually paid on those claims by health care benefit programs was $51,789.
False Tax Return
The Rysers also admitted that they willfully filed a false tax return for the year 2006. They understated their gross receipts and substantially overstated their expenses for 2006.
The indictment included three tax counts alleging that the Rysers operated their business as a sole proprietorship and gross receipts were deposited into two bank accounts that Michael Ryser maintained and controlled. However, they reported only the gross receipts deposited into one bank account and just part of the gross receipts deposited into the second bank account.
The Rysers understated their $10,060,012 in combined gross receipts for 2006-2008 by a total of $2,501,802 – nearly 25 percent of the gross receipts for these three years. They overstated their expenses for 2006 by $9,462,145. The total tax loss for 2006-2008 was $615,749.
Under the terms of today’s plea agreements, Michael Ryser will be sentenced within a range of 24 to 30 months in federal prison without parole. Carol Ryser will receive a sentence of three years of probation, including six months of home detention. The Rysers must pay $51,789 in restitution to the health care benefit programs that were defrauded. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Thomas M. Larson and Lucinda Woolery. It was investigated by the Health and Human Services Office of Inspector General, the Department of Labor Employee Benefits Security Administration, the FBI, IRS-Criminal Investigation, the Defense Criminal Investigative Service and the Food and Drug Administration.
Jury Convicts Springfield Man of Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been convicted in federal court of illegally possessing firearms.
Derick James Mack, 34, of Springfield, was found guilty on Tuesday, March 19, 2013 of two counts of being a felon in possession of a firearm.
Mack was in possession of a Hi-Point .45-caliber handgun on Feb. 10, 2012 and in possession of a Mosberg 12-gauge shotgun on March 14, 2012.
Police officers executed a search warrant at a Springfield hotel room that was rented by Mack on Feb. 10, 2012. Officers found the loaded handgun under a pillow on the bed. Officers also found a magnetic key holder containing methamphetamine, a butane lighter, small zip lock bags and a glass pipe in a men’s toiletry bag on a nightstand.
Police officers executed a search warrant at a Springfield residence where Mack was staying on March 14, 2012. Officers found the loaded shotgun between the bed mattresses in the master bedroom and a shotgun shell on a nearby dresser.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mack has a prior felony conviction for assault.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for less than two hours before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, March 18, 2013.
Under federal statutes, Mack is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Timothy A. Garrison and Ami Harshad Patel Miller. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Jury Convicts Springfield Man of Firearms used in Robberies; Faces at Least 55 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man faces at least 55 years in prison after being convicted in federal court of using firearms to rob two Springfield banks and a drugstore in November 2008.
Mark Joseph Morris, 49, of Springfield, was found guilty on Thursday, March 21, 2013, of three counts of possessing a firearm during a crime of violence. Morris earlier pleaded guilty (on Jan. 11, 2013) to committing the three robberies related to the firearm charges. Morris went to trial on the firearm charges claiming the gun he used in the robberies was a BB gun. Video surveillance at the banks and drug store confirmed Morris’ use of a firearm. However, the firearm used by Morris to commit the robberies was never recovered.
Morris admitted that he robbed Bank of America, 2633 W. College Rd., on Nov. 7, 2008. Evidence introduced during the trial indicated that Morris handed a note to a bank teller and then revealed a handgun concealed in his waistband. He tapped on the handgun with one hand and pointed to the cash drawer with the other. The teller removed a cash drawer and placed it on the counter. Morris took $3,208 from the drawer and ran out of the bank.
Morris also admitted that he robbed the Walgreens Drug Store at 1930 W. Grand St. on Nov. 17, 2008.
Morris also admitted that he robbed Bank of America, 710 W. Sunshine, on Nov. 21, 2008. Morris approached a bank teller and showed her a black pistol that was in his waistband. When the teller did not immediately respond, Morris removed the pistol from his waistband, pointed it at the teller and demanded, “Give me all your money.” The teller removed $8,957 from her teller drawer and placed it on the counter. Morris tucked the pistol back into his waistband, grabbed the cash from the counter, and ran out of the bank.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for less than two hours before returning the guilty verdicts to U.S. District Judge Richard E. Dorr, ending a trial that began Wednesday, March 20, 2013.
Under federal statutes, Morris is subject to a mandatory minimum sentence of 55 years in federal prison without parole for the firearms violations and up to 70 years in federal prison without parole for the robberies, plus a fine up to $1.5 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. Attorneys Abram McGull II and Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
KC Real Estate Agent Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., real estate agent was sentenced in federal court today for tax evasion.
Joseph R. Fulgenzi, 54, of Kansas City, was sentenced by U.S. District Judge Greg Kays to three years and 10 months in federal prison without parole. The court also ordered Fulgenzi to pay over $400,000 in restitution.
On Aug. 1, 2012 Fulgenzi pleaded guilty to tax evasion. Fulgenzi admitted that he owed substantial income tax that he avoided reporting. Between 1992 and 2007, according to the plea agreement, Fulgenzi had $672,447 in unreported income. The total criminal computation including taxes, penalties, and interest, totals $402,223.
According to his plea agreement, Fulgenzi has been embroiled in non-filing and non-payment issues dating back to the 1980s. Since that time, IRS civil collections has been involved with Fulgenzi. According to court documents, Fulgenzi repeatedly failed to cooperate and comply with court orders during civil collection efforts. Fulgenzi last voluntarily filed a tax return in 1991 for tax year 1990. Although he filed returns from 1982-1990, he has paid no taxes due and owing since 1982.
Fulgenzi admitted that he used his business and domestic partner to impede the IRS’s collection efforts and conceal his assets. For example, in order to conceal his income and assets, Fulgenzi diverted his real estate commissions and other income (such as proceeds from the sale of a rental property) to his partner, through whose bank account all of Fulgenzi’s personal expenses were funneled. Fulgenzi appears to have spent his money on their party lifestyle and trips, according to the plea agreement. The bulk of Fulgenzi’s income appears to have been spent on their home improvements and car payments.
This case was prosecuted by Assistant U.S. Attorney Roseann Ketchmark. It was investigated by IRS-Criminal Investigation.KC Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing a Raytown, Mo., bank last summer.
Carlos D. Davis, 19, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to six years and six months in federal prison without parole. The court also ordered Davis to pay $1,231 in restitution.
On Oct. 30, 2012, Davis pleaded guilty to robbing US Bank, 9063 E. Gregory in Raytown. Co-defendant Deonte L. Robertson, 22, of Kansas City, Mo., pleaded guilty on Nov. 7, 2012 and awaits sentencing.
Davis and Robertson entered the bank on June 29, 2012, and sat together at chairs in the teller lobby. Davis approached a teller while Robertson, acting as the lookout, remained seated in the lobby. Davis handed the teller three paper bags and a note, directing her to put large bills in a bag. The teller put money in the bag and gave it to Davis, who demanded she also fill another bag. When she told Davis that she didn’t have any more money, he and Robertson fled from the bank.
A police officer who responded to the alarm saw Davis and Robertson a few blocks from the bank, walking down the middle of the street. As the officer approached, the men split and began running in different directions. The officer caught Robertson and later found approximately half of the robbery proceeds, about $990, hidden nearby. Davis was arrested later.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Raytown, Mo., Police Department.Joplin Man Sentenced for Bank Fraud Scheme; Targeted Tornado VictimRead 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 a bank fraud scheme that targeted a woman whose home was destroyed by the May 22, 2011, tornado.
Teddy Lane Lawson, 53, of Joplin, was sentenced by U.S. District Judge Richard E. Dorr to three years and two months in federal prison without parole. The court also ordered Lawson to pay $2,960 in restitution to First State Bank.
On April 18, 2012 Lawson pleaded guilty to 10 counts of bank fraud and one count of aggravated identity theft.
Lawson received permission in June 2011 to enter the property of a woman whose home had been destroyed in the tornado, who is identified as "L.L.," in order to remove scrap metal. While he was on the property, Lawson stole a checkbook belonging to L.L., which contained blank checks.
Between July 5 and 9, 2011, Lawson used checks from the stolen checkbook to purchase merchandise from stores in Missouri, Oklahoma and Kansas. Lawson specifically pleaded guilty to 10 counts that charged him with writing checks in Joplin, Springfield, Mo., and Webb City, Mo. Lawson admitted that he signed L.L.'s name (or a similar name) to 20 checks totaling $2,960.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Secret Service and the Joplin, Mo., Police Department.
Skidmore Man Charged with Illegal Firearm Following PursuitRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Skidmore, Mo., man was charged in federal court today with illegally possessing a firearm after he attempted to flee from law enforcement officers.
Eric Maupin, 51, of Skidmore, was charged with being a felon in possession of a firearm in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers responded to a report of a domestic disturbance at Maupin’s residence on March 12, 2013. When officers entered the residence through the open front door, there was nobody in the house; however, they saw long guns positioned at the windows and exterior doors of the residence. As they were leaving the residence, Maupin’s wife told them that she and her husband had been involved in an altercation and he was still on the property.
As the officers walked from the residence, the affidavit says, a Cadillac Escalade pulled out of one of the sheds on the property and drove at a high rate of speed in the direction of the officers. They pointed their weapons in the direction of the Escalade and the vehicle stopped. Maupin, whom the affidavit says was driving, was ordered to exit the vehicle. Instead, he again drove in the direction of the officers. The officers did not fire their weapons due to the presence of children in the vehicle. Maupin backed the vehicle up and drove out another exit from the property, the affidavit says, due to the driveway being blocked.
Maupin crashed the Escalade at the intersection of Highway PP and Highway 46. The vehicle was able to back out and continued east on Highway 46 for approximately 100 yards before the vehicle became disabled. Maupin exited the vehicle and was taken into custody by the sheriff and a state trooper after a brief struggle, the affidavit says.
According to the affidavit, officers searched the vehicle and found a loaded Beretta .40-caliber semi-automatic pistol between the front seat and the armrest of the vehicle. They also found 11 additional firearms and ammunition in Maupin’s residence.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Maupin has prior felony convictions for conspiracy to manufacture methamphetamine, possession of methamphetamine, carrying a concealed weapon and possession of a controlled substance.
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 D. Michael Green. It was investigated by the Nodaway County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
James Douglas Cheek, 31, of Columbia, was sentenced by U.S. District Judge Beth Phillips to five years and three months in federal prison without parole.
On Oct. 4, 2012, Cheek pleaded guilty to being a felon in possession of a firearm. Cheek admitted that he was in possession of an FEG .45-caliber pistol on March 13, 2012. Law enforcement officers found Cheek, apparently asleep, sitting in the driver’s seat of a reported suspicious vehicle that was parked partially in a convenience store’s parking lot and partially in a yard. Cheek was arrested on outstanding warrants and officers found the loaded pistol on the driver’s side floor board of the car.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Cheek has prior felony convictions for assault, unlawful use of a weapon and leaving the scene of a motor vehicle accident.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Boone County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.KC Man Sentenced to 19 Years for Illegal Firearm Used to Threaten, Beat WomanRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm that he used to threaten and beat a woman.
Jervonz L. Williams, 37, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 19 years in federal prison without parole. Williams was sentenced as an armed career offender due to his prior felony convictions.
On Nov. 14, 2012, Williams pleaded guilty to being a felon in possession of a firearm. Williams admitted that he was in possession of a Smith and Wesson .38-caliber revolver.
According to court documents, Williams attacked a woman near a parking lot at 70th and Troost on May 4, 2012, striking her in the back of the head with the revolver and repeatedly kicking her and striking her with his hands and with a green glass bottle until she was unconscious. Two witnesses saw Williams point the gun at his victim’s head. One of the witnesses reported that Williams put the gun to the victim’s head and said, “I ought to blow your … brains out.” Williams also pulled the handgun from his pocket and pointed it in the direction of one of the witnesses. Witnesses called the police, who arrested Williams and found the revolver in his pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has five prior felony convictions, including three prior felony convictions for burglary and prior felony convictions for aggravated sexual battery and robbery.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. 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 Man Sentenced to 16 Years for Illegal FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Seab Nolen, 51, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 16 years in federal prison without parole. Nolen was sentenced as an armed career offender due to his prior felony convictions.
On Oct. 15, 2012, Nolen pleaded guilty to being a felon in possession of a firearm. Williams admitted that he was in possession of an RG Industries .22-caliber revolver.
According to court documents, police officers were called to Nolen’s residence for a disturbance involving a weapon on June 3, 2012. Nolen had left the residence, but was located by police officers and arrested. Officers searched the residence and found the handgun in a blue plastic bin in the closet.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Nolen has nine felony convictions, including three prior felony convictions for theft and prior felony convictions for burglary, aggravated battery, criminal damage to property, unlawful use of a weapon by exhibiting it in an angry or threatening manner, possession of a controlled substance and domestic assault.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Eight Individuals Indicted for Lacey Act Violations and Other Crimes Relating to the Trafficking of Paddlefish "Caviar"Read the Press Release
WASHINGTON –Eight individuals face federal charges stemming from a joint U.S. Fish and Wildlife Service and Missouri Department of Conservation investigation of interstate and international trafficking in paddlefish “caviar,” the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Western District of Missouri announced. Arkadiy Lvovskiy, Dmitri Elitchev, Artour Magdessian, Felix Baravik, Petr Babenko , Bogdan Nahapetyan, Fedor Pakhnyuk, and Andrew Praskovsky have been charged in four, separate indictments in the Western District of Missouri for acts that occurred in 2011 and 2012.
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any State, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any State.
Arkadiy Lvovskiy, 51, of Aurora, Colorado, Dmitri Elitchev, 46, of Centennial, Colorado, Artour Magdessian, 46, of Lone Tree, Colorado, and Felix Baravik, 48, of Aurora, Colorado, were charged with conspiring with each other, and others, to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that in the spring of 2011 and 2012, the defendants traveled to Warsaw, Missouri, where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, the defendants transported the caviar from Missouri to Colorado. The indictment further alleges that, during the interstate transportation, the defendants engaged in counter-surveillance efforts in order to avoid being detected.
Petr Babenko, 42, of Vineland, New Jersey, and Bogdan Nahapetyan, 33, of Lake Ozark, Missouri, were charged with conspiring with each other and other individuals to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that between March and April 2012, the defendants traveled to Warsaw, Missouri, where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, they transported the caviar from Missouri to New Jersey.
Fedor Pakhnyuk, 39, of Hinsdale, Illinois, is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in the spring of 2011 and 2012 Pakhnyuk traveled from Illinois to Missouri for the purpose of obtaining paddlefish eggs. The indictment alleges that Pakhnyuk procured paddlefish eggs by purchasing them, and by performing processing services for other persons in exchange for a share of the processed eggs. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Illinois. The indictment alleges that Pakhnyuk also attempted to form an enterprise with other individuals that would market processed paddlefish caviar at markets in Chicago, Illinois.
Andrew Praskovsky, 40, of Erie, Colorado, is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in March and April 2012, Praskovsky twice traveled to Warsaw, Missouri, for the purpose of purchasing paddlefish. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Kansas. The indictment alleges that, in April 2012, Praskovsky attempted to export some of the paddlefish eggs in checked luggage on an international flight departing from Dulles International Airport in Washington, DC. The paddlefish eggs were seized at Dulles, as paddlefish eggs may only be exported if they are accompanied by a valid permit issued by the U.S. Fish & Wildlife Service under the Convention for International Trade in Endangered Species (CITES).
If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of any vehicles that were used during the commission of the crimes.
The case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation. The case is being prosecuted by Trial Attorneys James B. Nelson and Adam C. Cullman of the Department of Justice’s Environmental Crimes Section and Supervisory Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Lvovskiy, et al Indictment
Babenko, et al Indictment
Pakhnyuk Indictment
Praskovsky Indictment
Rockaway Beach Man Sentenced for Six Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Rockaway Beach, Mo., man was sentenced in federal court today for six bank robberies, including two in Columbia, Mo., and Sedalia, Mo.
Kenneth Dewain Parker, 49, of Rockaway Beach, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to eight years and four months in federal prison without parole. The court also ordered Parker to pay $22,362 in restitution.
On July 30, 2012, Parker pleaded guilty to several separate federal indictments. Parker admitted that he stole $2,500 from US Bank in Columbia on Sept. 3, 2010, and that he stole $9,150 from Union Savings Bank in Sedalia on Sept. 21, 2010. Those offenses were charged in an indictment returned by a federal grand jury in Jefferson City, Mo., on Nov. 2, 2010.
Parker also pleaded guilty to charges in two separate cases that were transferred to the Western District of Missouri. In a case from the District of Oregon, Parker admitted that he stole $3,585 from Liberty Bank in Eugene, Ore., on July 30, 2010; that he stole $2,203 from Umpqua Bank in Salem, Ore., on Aug. 17, 2010; and that he stole $2,385 from Key Bank in Portland, Ore., on Aug. 23, 2010. In a case from the Northern District of Iowa, Parker admitted that he robbed Bank of the West in Cedar Rapids, Iowa, on Aug. 31, 2010.
These cases were prosecuted by Assistant U.S. Attorney Jim Lynn. The case in the Western District of Missouri was investigated by the FBI, the Columbia, Mo., Police Department, the Sedalia, Mo., Police Department, the University City, Mo., Police Department, the Brentwood, Mo., Police Department and the Taney County, Mo., Sheriff=s Department.Blue Springs Man Pleads Guilty to Producing Child Porn; Faces at Least 15 Years in PrisonRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man pleaded guilty in federal court today to producing child pornography and related charges.
Christopher R. Lockhart, 30, of Blue Springs, pleaded guilty before U.S. District Judge Beth Phillips to producing child pornography, attempting to distribute child pornography and possessing child pornography. Lockhart has been in federal custody since his arrest.
By pleading guilty today, Lockhart admitted that he used a minor – identified in the indictment as John Doe – to produce child pornography. Lockhart also admitted that he attempted to distribute an image of child pornography over the Internet on April 20, 2012, and that he was in possession of child pornography on May 30, 2012.
According to court documents, a detective with the Clay County Sheriff’s Department identified Lockhart’s computer during an undercover investigation of a peer-to-peer file-sharing network as containing child pornography. The detective downloaded 346 files from Lockhart’s computer, of which 161 files matched known suspected child pornography.
Law enforcement officers executed a search warrant at Lockhart’s residence on May 30, 2012, and seized numerous computers, including laptops, flash drives and other media. Some of them contained video files and images of child pornography, including a video produced by Lockhart of an adult man engaged in sex with the child victim, who is believed to be three years old at the time.
Under federal statutes, Lockhart is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 60 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 Joseph M. Marquez. It was investigated by the Western Missouri Cyber Crimes Task Force and 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."Joplin Man Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Leslie Lynn Williams, 53, of Joplin, pleaded guilty before U.S. District Richard E. Dorr to the charges contained in a Dec. 13, 2012 federal indictment.
Williams admitted that he filed for disaster relief on May 27, 2011. Williams listed a Joplin address as his primary residence and claimed that it had been damaged by the tornado. FEMA authorized a $1,196 payment to Williams. Williams admitted today, however, that he was not living at that address at the time of the tornado, but had moved out in February 2011.
Under federal statutes, Williams is subject to a sentence of up to 30 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 FBI, Department of Homeland Security-Office of Inspector General, 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.
Springfield Businessman Indicted for $3.3 Million Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., businessman has been indicted by a federal grand jury for a series of bank fraud and wire fraud schemes that totaled more than $3.3 million in losses, as well as for money laundering and bankruptcy fraud.
“Several local financial institutions suffered significant losses from a series of bank fraud schemes,” Dickinson said. “These are not victimless crimes, and we will aggressively prosecute those who seek to profit from financial crimes.”
Richard Thomas Gregg, 57, of Springfield, was charged in a 17-count indictment returned under seal by a federal grand jury on Feb. 28, 2013. That indictment was unsealed and made public today upon Gregg’s arrest and initial court appearance.
Gregg is charged with four counts of bank fraud, 10 counts of money laundering, two counts of wire fraud and one count of bankruptcy fraud.
David L. Anderson, Special Agent in Charge of the Kansas City Region of the FDIC Office of Inspector General, said, “Those individuals who engage in bank fraud and money laundering schemes undermine the integrity of the banking and financial services industry. The FDIC OIG is committed to stopping these illegal acts.”
“The federal indictment alleges that Mr. Gregg’s actions led to losses at several financial institutions,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “IRS CI is proud to provide our financial expertise as we work alongside our law enforcement partners to investigate these alleged illegal activities and hold those responsible for their actions.”
Gregg was the principal shareholder and director of Southwest Community Bank in Springfield, which failed in May 2010. He and his wife were majority shareholders in Glasgow Savings Bank in Glasgow, Mo., which failed in 2012. Prior to Glasgow Savings Bank’s failure, it was one of the oldest operating banks west of the Mississippi River. Gregg was also a real estate developer, investor and a licensed insurance agent for the Shelter Mutual Insurance Company. Gregg had ownership interest in and controlled a number of business entities.
According to the indictment, Gregg and his business entities accumulated substantial debt. On a personal financial statement the defendant provided to Great Southern Bank in November 2009 he reported more than $65 million in total liabilities. As of Feb. 28, 2013, the indictment says, approximately $14.6 million of the known debt attributable to Gregg and his business entities had been “charged off” by the creditor financial institutions, meaning they had defaulted and the financial institution had “written off” part or all of the loan because it determined the debt was not collectable.
Fremont Property
The federal indictment alleges that Gregg engaged in a scheme to defraud Southwest Community Bank in 2008. As a part of this bank fraud scheme, the indictment says, Gregg sold the bank a piece of commercial real estate at 2814 S. Fremont in Springfield for $1,551,944. Gregg allegedly knew that amount was significantly above fair market value.
Gregg, who was Southwest Community Bank’s principal shareholder and was on its Board of Directors, did not disclose to the bank that he had purchased that property for $775,000 a few months earlier, the indictment says, nor did he disclose to the bank that two appraisals had been conducted on the property in recent months. One appraisal valued the property at $762,000. The second appraisal was cancelled when Gregg disagreed with the preliminary work. After Gregg cancelled the appraisal, the indictment says, his son (who worked at Southwest Community Bank) ordered an appraisal of the Fremont property by another appraiser, who valued the property at $1,580,000. Gregg allegedly did not disclose to the bank that this appraisal was not an independent valuation of the property, but rather was something Gregg had, in essence, directed.
The indictment charges Gregg with four counts of money laundering related to this bank fraud scheme.
Stock Shares
In February 2009 Gregg borrowed $2 million from Great Southern Bank, using 160,000 shares of stock for First Bancshares, Inc. (FBSI), the holding company for First Homes Savings Bank, as collateral. Gregg physically deposited the stock certificate with Great Southern Bank.
According to the indictment, on May 6, 2009, with a $1.5 million balance remaining on the loan from Great Southern Bank, Gregg checked out the original FBSI stock certificate from Great Southern Bank, using as a pretext the stated purpose of separating the large certificate into multiple smaller certificates. He signed a trust receipt promising to return to the certificate to the bank within 30 days. Instead, the indictment says, Gregg deposited the collateralized FBSI shares into his account at Scottrade, a privately-owned retail brokerage firm located in St. Louis, Mo. On May 28, 2009, Gregg allegedly borrowed $440,000 from Scottrade, from the margin account on which the defendant used the FBSI stock as collateral. Gregg chose not to return the FBSI certificate or any proceeds he received to Great Southern Bank, according to the indictment, and instead used the funds for other purposes.
Collectible Cars
The federal indictment charges Gregg with two counts of bank fraud related to schemes to use collectible automobiles as collateral to obtain loans, then sell the automobiles without paying back the loans. In January and February 2010 Gregg allegedly executed separate but related schemes to defraud Great Southern Bank, Metropolitan National Bank and People’s Bank of the Ozarks. As a part of these schemes, the indictment says, Gregg sold seven collectible automobiles at the Barrett-Jackson Auto Auction in Scottsdale, Ariz. Five of the automobiles were encumbered at the three banks.
According to the indictment, Gregg borrowed $400,000 from Great Southern Bank in October 2007, which he secured with four collectible automobiles, including a 2006 Ford GT. Gregg consigned the 2006 Ford GT with the Barrett-Jackson Auto Auction in Scottsdale, Ariz., where on Jan. 23, 2010, the vehicle was sold at auction for approximately $150,000. Gregg allegedly chose to not return the proceeds of the sale of the Ford GT ($138,000 after deducting the auctioneer’s fee) to Great Southern Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Great Southern Bank realized a $129,644 loss.
According to the indictment, Gregg borrowed $400,000 from Metropolitan National Bank in 2005. He secured this loan with a “floor plan” financing, meaning the loan was a revolving line of credit made against specific pieces of collateral, in this case automobiles. When each vehicle on the floor plan was sold, the loan advanced against that piece of collateral was to be repaid. This loan was renewed in December 2009. In January 2010, the collateral included a 1971 Chevy Cheyenne Pickup. The portion of the loan’s balance collateralized by the 1971 Chevy Cheyenne Pickup was $17,221. Gregg also consigned the 1971 Chevy Cheyenne Pickup with the Barrett-Jackson Auto Auction, the indictment says, and it was sold for approximately $29,000. Gregg allegedly chose to not return the proceeds of the sale ($26,680 after deducting the auctioneer’s fees) to Metropolitan National Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Metropolitan National Bank realized a $17,221 loss.
The indictment charges Gregg with six counts of money laundering related to these bank fraud schemes.
Oklahoma Casinos
The federal indictment charges Gregg with two counts of wire fraud related to bounced checks at two Oklahoma casinos.
On Jan. 3,2012 Gregg allegedly presented five checks, payable to Buffalo Run Casino in Miami, Okla., each in the amount of $10,000. Gregg allegedly knew his credit union account contained insufficient funds to cover those checks.
Between Feb. 16 and March 1, 2012, Gregg allegedly presented five checks payable to Downstream Casino and Resort in Quapaw, Okla., in the total amount of $60,000. Gregg allegedly knew his bank account contained insufficient funds to cover those checks.
Bankruptcy Fraud
On Aug. 14, 2012, Gregg allegedly made false declarations by submitting false Schedules of Assets and Liabilities and a false Statement of Financial Affairs in his bankruptcy proceedings. Gregg stated that the bankruptcy debtor, 1717 Marketplace, LLC, owed him $868,000 for a “personal loan,” and owed another person $801,000 for a “personal loan.” In fact, as Gregg knew, neither he nor the other person had lent 1717 Marketplace, LLC funds in those amounts.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FDIC Office of Inspector General and IRS-Criminal Investigation.Liberty Man Charged with Attempted Bank Robbery after Shooting, High-speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was charged in federal court today with attempted bank robbery after being shot by an employee at a Trimble, Mo., bank and leading law enforcement officers on a high-speed chase.
Michael Stephen Oliva, 34, of Liberty, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Oliva, who has not yet had a court appearance, remains hospitalized and in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, Oliva entered First Security Bank, 202 U.S. Hwy. 169, Trimble, at about 1:25 p.m. Friday, March 1, 2013. Oliva allegedly pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee and ordered her to give him the money in her teller drawer. The employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, the affidavit says, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
The second bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee, the affidavit says, and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva. The first shot struck Oliva in the jaw, according to the affidavit, and he turned and started toward the bank’s front doors. No money was taken during the attempted robbery.
After Oliva left the bank, the affidavit says, the first employee got up from the floor and saw him staggering behind a nearby building. She then saw a silver car drive very fast on Hwy. 169 past the bank, and called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
According to the affidavit, Trimble police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
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 D. Michael Green. It was investigated by the Trimble, Mo., Police Department, the Clinton County, Mo., Sheriff’s Department and the FBI.St. Joseph Woman Pleads Guilty to Conspiracy; more than 100 Illegal Aliens used False ID to Obtain LicensesRead 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 has pleaded guilty 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, pleaded guilty before U.S. District Judge Brian C. Wimes on Thursday, Feb. 28, 2013 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 other than the licensing office to receive payment.
Under the terms of today’s plea agreement, Mendoza must forfeit $125,000 to the government as well as several vehicles that have been 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.
Mendoza is subject to a mandatory two-year term of imprisonment for aggravated identity theft that must run consecutively to a sentence of up to five years in federal prison without parole for the conspiracy, 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. 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.Oklahoma Man Pleads Guilty to Child Porn, Extortion, Faces 15 Years in PrisonRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Oklahoma man pleaded guilty in federal court today to extorting a 14-year-old Missouri girl into sending him pornographic photos of herself.
Jeran Randall Secratt, 28, of Tahlequah, Okla., pleaded guilty before U.S. District Judge Dean Whipple to producing child pornography and to extortion.
By pleading guilty today, Secratt admitted that he met a 13-year-old Missouri girl (identified as “Jane Doe” in court documents) in an online virtual videogame and they began chatting online. Some of their chats contained sexually explicit language and references to proposed sexual acts between the two of them.
Over time, Secratt suggested that Jane Doe obtain a webcam so that she could send explicit images of herself to him. Jane Doe obtained a webcam for Christmas and, in multiple chats, Secratt enticed Jane Doe to send him pornographic pictures of herself. Jane Doe refused to do so until Secratt threatened to send copies of their prior sexual chats to all the persons on her email contact list. This list contained contact information of friends and family, including Jane Doe’s grandmother. In response to this threat to her reputation, Jane Doe took explicit photos of herself and sent them to Secratt. Some of the images were subsequently found on Secratt’s computer.
The court accepted Secratt’s guilty plea today and took the plea agreement under advisement until the completion of a presentence investigation by the United States Probation Office. If the court accepts the plea agreement, Secratt will be sentenced to 15 years in federal prison without parole, followed by a period of supervised release of no less than five years.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the FBI Cyber Crimes Task Force (Kansas City Division) and the FBI (Oklahoma City Division).
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."Kansas Man Sentenced for Murder-for-Hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Basehor, Kan., man was sentenced in federal court today for attempting to hire a man to kill his wife.
Lee D. Smith, 38, of Basehor, was sentenced by U.S. District Judge Beth Phillips to eight years in federal prison without parole.
Smith, who pleaded guilty on Oct. 2, 2012, admitted that he contacted a Kansas City, Mo., man (who is only identified in the plea agreement as a confidential informant) on May 9, 2012, about hiring the man to kill his wife. On the same day, Smith drove to a bus stop near Brush Creek and Highway 71 in Kansas City, Mo., to pick up the man. Smith drove him to an office building in Overland Park, Kan., where his wife worked. Smith pointed out the door she used to enter the building, showed the man where she parked her vehicle, and described the type of vehicle she would be driving. Smith gave the man a physical description of his wife and told him what time she usually arrived at work in the morning. Smith told the man that he would pay him $1,500 to kill his wife when she arrived at the work the next day (May 10, 2012).
The man informed the Kansas City Police Department about Smith’s plan to murder his wife. Following police instructions, he called Smith on May 11, 2012, and told him that he had abducted both his wife and daughter. Smith told the man to release his daughter but to kill his wife. Later on the same day, the man, following police instructions, again called Smith and told him that he had killed Smith’s wife; he demanded $1,800 for doing this.
Smith agreed to meet the man later that day at a grocery store in Kansas City, Mo., and pay him the $1,800 for murdering his wife. Following this conversation, Smith went to his bank and cashed a check for $1,600. Later that morning, the Kansas City Police Department asked Smith to come to police headquarters so they could give him “news” about his wife. When Smith arrived at police headquarters he was arrested.This case was 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.
Springfield Man Sentenced for Illegally Possessing AmmunitionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man has been sentenced in federal court for illegally possessing ammunition.
Tony L. Friend, 45, of Springfield, was sentenced by U.S. District Judge Richard E. Dorr on Tuesday, Feb. 26, 2013 to four years and nine months in federal prison without parole.
On Sept. 12, 2012 Friend pleaded guilty to being a felon in possession of ammunition. Law enforcement officers, who identified Friend during an investigation into the deaths of Russell and Rebecca Porter of Willard, Mo., seized three shotgun shells when they executed a search warrant at Friend’s residence on May 23, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Friend has prior felony convictions for unlawful use of a weapon and domestic assault.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greene County, Mo., Sheriff’s Department.
Nixa Woman Sentenced for Counterfeit Check, Mail Theft, Identity Theft ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nixa, Mo., woman has been sentenced in federal court for participating in a conspiracy to create and cash more than $134,000 in counterfeit checks in a three-state area. The scheme involved stealing mail from businesses in Missouri, Arkansas and Oklahoma in order to create counterfeit business checks, then using stolen identities to cash the counterfeit checks.
Lisa Strait-Destefano, 39, of Nixa, was sentenced by U.S. District Judge Richard E. Dorr on Monday, Feb. 25, 2013 to five years and seven months in federal prison without parole. The court also ordered Strait-Destefano to pay $76,295 in restitution.
Strait-Destefano pleaded guilty on Dec. 20, 2011 to conspiracy, bank fraud and aggravated identity theft. Strait-Destefano and co-defendant Derrick Haggard, also known as "Disco," 35, of Nixa, led the conspiracy to create counterfeit checks using original checks and other material that the group stole from private mailboxes in Missouri, Arkansas and Oklahoma. During the time of the conspiracy, the group was successfully able to pass $61,335 in counterfeit checks at financial institutions in Missouri, Arkansas and Oklahoma. The group unsuccessfully attempted to pass an additional $73,111 in counterfeit checks.
On Jan. 13, 2012, Haggard was convicted at trial of all 27 counts charging him with leading a conspiracy to commit bank fraud, create and cash counterfeit checks and steal mail from July 1 to Oct. 25, 2010. He was sentenced on July 31, 2012, to 18 years in federal prison without parole. The court also ordered Haggard to pay $76,295 in restitution, for which he is jointly and severally liable with Strait-Destefano.
Derrick Haggard recruited individuals, including co-defendant Dietrich Haggard, also known as "D-Ball," 31, of St. Robert, Mo., to steal mail from private mailboxes. Dietrich Haggard, along with others associated with the scheme, primarily stole mail from business locations, looking for mail which contained original checks so that the original checks could be counterfeited. They provided those checks to Derrick Haggard and Strait-Destefano, who created the counterfeit checks.
Derrick Haggard recruited persons to take the counterfeit checks to financial institutions or commercial establishments and attempt to cash them. Strait-Destefano directed Derrick Haggard and others as to which businesses to approach, based upon her experiences in the banking industry. Strait-Destefano and Derrick Haggard provided the check passers with false identification documents, which used the identity of real persons without their permission to match the names placed on the counterfeit checks.
Dietrich Haggard was sentenced to three years in federal prison without parole after pleading guilty to his role in the conspiracy.
Strait-Destefano is the eighth and final defendant to be sentenced in this case. Co-defendant Zachary Skinner, 25, of Springfield, Mo., was sentenced to 17 months in federal prison after pleading guilty to his role in the conspiracy. Co-defendant Paul Douglas, Jr., 45, of Ft. Leonard Wood, Mo., pleaded guilty and was sentenced to 18 months in federal prison without parole and ordered to pay $35,601 in restitution. Christopher Quale, 26, of Saint Robert, pleaded guilty and was sentenced to 16 months in federal prison without parole and ordered to pay $6,618 in restitution.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Postal Service, the U.S. Secret Service, the police departments of Springfield, Branson, Hollister, St. Robert, Carthage, Nixa, Troy, Strafford, Union, Washington, Linn, Lebanon, and Neosho in Missouri, the Tulsa, Okla., Police Department, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff's Department, the Greene County, Mo., Sheriff=s Department, the Fayetteville, Ark., Police Department, the Arkansas State Police, and the Crawford County, Kan., Sheriff=s Department.
Jury Convicts Independence Man of Social Security Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was convicted in federal court today of a scheme to receive Social Security disability payments while running a mortgage brokerage firm that he founded in Blue Springs, Mo.
Charles Daniel Koss, 63, of Independence, was found guilty of two counts of theft of government money, one count of Social Security disability fraud, one count of mail fraud and one count of transmitting a false negotiable instrument with the intent to defraud the government.
Evidence introduced during the trial indicated that Koss fraudulently received a total of $212,768 in Social Security disability insurance payments between September 1994 and January 2010. He also fraudulently received a $250 American Recovery and Reinvestment Act payment. During that time, Koss owned and operated Embassy Mortgage in Blue Springs, a company he founded in 1994. Several witnesses during the trial confirmed that Koss worked full-time as a loan officer and ran the business; his wife did paperwork, such as paying bills and processing documents. Embassy Mortgage was involved in approximately 550 closings, nearly all of which were conducted with Koss present.
Koss, who began receiving disability payments in 1987, failed to report any change in his health condition or any income from Embassy Mortgage to the Social Security Administration. In order to qualify for and to keep receiving Social Security disability insurance benefits, a person must be so disabled that they are unable to perform substantial work. Individuals are required to report all work activity to the Social Security Administration. Koss led an active lifestyle that included bowling, golfing, horseshoes, boating, activities at his lake house and frequent visits to Ameristar Casino, where he gambled a total of $260,000 during this time.
On April 15, 2010, Koss received a billing statement from the Social Security Administration requesting repayment of the $212,768 he was overpaid as a result of his unreported work activity. About a month later, he mailed to the Social Security Administration a document entitled “Registered Private Money Order,” a false negotiable instrument purporting to draw on a trust account purportedly held at the United States Treasury. In actuality, the account did not exist and the document was fraudulent.
Koss told federal agents in interviews during the investigation that he has studied redemption theory. Redemption theory involves bogus claims that when the United States government abandoned the gold standard in 1933, it pledged its citizens as collateral so it could borrow money. The movement also asserts that common citizens can gain access to funds in secret accounts using obscure procedures and regulations. According to the theory, the government created a fictitious person (or “straw man”) corresponding to each newborn citizen and each citizen has an alleged secret trust account with the United States Treasury. The theory also claims that through obscure procedures under the Uniform Commercial Code, a citizen can “reclaim” the “straw man” and write negotiable instruments against its accounts. Its adherents sometimes call themselves “sovereign citizens.” The “sovereign citizen” movement is a loosely organized collection of groups and individuals who have adopted anarchist ideology. Its adherents believe that virtually all existing government in the United States is illegitimate and they seek to “restore” an idealized, minimalist government that never actually existed.
Redemption theory and sovereign citizen beliefs are totally without merit and they have no basis in law or fact. Individuals often use these ideas to further various fraudulent schemes.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three and a half hours before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a three-day trial that began Tuesday, Feb. 19, 2013.
Under federal statutes, Koss is subject to a sentence of up to 61 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 Special Assistant U.S. Attorney Trey Alford, Assistant U.S. Attorney Daniel M. Nelson and Special Assistant U.S. Attorney Kate Hoey. It was investigated by the Social Security Administration – Office of Inspector General, the Department of the Treasury – Inspector General for Tax Administration and the U.S. Postal Inspection Service.Sarcoxie School Board Member Charged with Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a member of the Sarcoxie, Mo., school board was charged in federal court today with possessing child pornography.
John R. Lewis, 67, of Sarcoxie, was charged in a criminal complaint filed in the U.S. District Court in Springfield with possessing child pornography. Lewis was arrested without incident prior to Thursday night’s school board meeting and remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s federal criminal complaint, Missouri State Highway Patrol troopers contacted Lewis as part of their investigation into allegations that he had exposed himself to a group of high school students who were working for Lewis on his farm outside of Sarcoxie. The troopers obtained a search warrant for Lewis’s residence and seized two desktop computers, a laptop computer and electronic storage devices.
Investigators determined that the computers contained 19 multimedia files of child pornography and 113 images of suspected child pornography. The multimedia files and images depicted children as young as five years old.
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 Missouri State Highway Patrol and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Professional Counselor Sentenced for $1.5 Million Conspiracy to Illegally Distribute Prescription Drugs at Carthage ClinicRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a licensed professional counselor at a Carthage, Mo., clinic was sentenced in federal court today for her role in conspiracies to illegally distribute more than $1.5 million in prescription drugs and to engage in money laundering.
Tammy L. Neil, 43, of Carthage, was sentenced by U.S. District Judge Richard E. Dorr to 12 months and one day in federal prison without parole and ordered to pay a $10,000 fine. The court also ordered Neil to forfeit to the government a 2007 Jaguar, a 1966 Piper airplane and $10,000, which is a substitute asset for a 2008 Cadillac Escalade, all of which was property that was purchased with the proceeds of her criminal conduct. The court also ordered Neil to forfeit to the government an additional $200,000, which represents the proceeds received in exchange for the distribution of controlled substances.
Neil pleaded guilty on July 18, 2012 to her role in a conspiracy to illegally distribute phentermine from Jan. 1, 2005, through March 26, 2008. Neil also admitted that she participated in a conspiracy to engage in money laundering during the same time frame by aiding and abetting others to conduct financial transactions that involved the proceeds of the illegal distribution of prescription drugs. Between 2005 and 2008, Neil and her former husband (now deceased), Dr. John Freitas, deposited more than $1.5 million into several bank accounts.
Neil and Freitas, a doctor of osteopathic medicine, owned and operated Complete Quick Care Clinic, 2232 S. Garrison, Carthage. Freitas was primarily in charge of the health care aspects of the clinic, while Neil managed the day to day operations of the clinic and ran the weight loss side of the clinic. As a part of the weight loss clinic, Neil was responsible for seeing more than half of all the clinic patients every day. Neil directed her employees to weigh the patients, chart their weight, and then sell the patients phentermine – which patients referred to as “synthetic meth” – as part of the weight loss protocol.
Phentermine is an amphetamine-based controlled substance often used to assist in weight loss. As a licensed counselor, Neil was not authorized to prescribe or dispense any controlled substance, including phentermine. Therefore, her patients received phentermine outside the scope of professional practice and not for a legitimate medical purpose.
This case was prosecuted by Assistant U.S. Attorneys Randall D. Eggert and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, the DEA Diversion Division, IRS-Criminal Investigation, the Carthage, Mo., Police Department and the Missouri State Highway Patrol.
KC Business Owners Indicted for Defrauding Debt-stressed ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owners and operators of a Kansas City, Mo., firm that promised to help financially-strapped clients get out of debt have been indicted by a federal grand jury for defrauding their clients, causing some of them to lose their homes and vehicles.
John Lee Norris, 42, and Julie Tina Hatcher, 37, both of Kansas City, were charged in a 21-count indictment that was returned under seal by a federal grand jury on Feb. 19, 2013. The indictment was unsealed and made public today upon the arrests and initial court appearances of Norris and Hatcher.
According to the indictment, Norris and Hatcher operated Reaper Investment Partners, LLC; in August 2011 they formed Death Productions LP. Between August 2010 and April 2012, the indictment alleges, Norris and Hatcher participated in a conspiracy to defraud homeowners and other debtors who were in financial distress (as well as their victims’ lenders and the Federal Housing Administration).
Norris and Hatcher allegedly recruited and targeted homeowners and others who were in financial difficulties with promises that they would be rescued from their financial problems, including foreclosure. Norris and Hatcher allegedly told victims that Reaper Investment Partners (RIP) would refinance the homeowners’ existing mortgages for a lower amount and at an interest rate of three percent.
As part of their scheme, the indictment says, RIP would control title to the homeowners’ properties. The homeowners would stop making payments to their lenders and instead make their monthly payments to RIP. The homeowners gave Norris and Hatcher power of attorney. Homeowners did not communicate with their lenders, the indictment says, even when they received telephone calls, late notices and foreclosure notices from their lenders. Instead, homeowners forwarded the notices and other documents to Norris and Hatcher. When homeowners contacted Norris and Hatcher to report that they had received notice that their homes were being foreclosed, the defendants reassured them by telling them not to worry, that was part of the process.
Norris and Hatcher allegedly told some of their client-victims that one or both of them were lawyers, had legal experience, or were able to practice law. They allegedly said that RIP would draft, serve, file, and record legal forms, pleadings, and other documents and would conduct necessary legal processes, contact the relevant parties, and implement administrative procedures. Norris and Hatcher allegedly mailed documents to the homeowners’ lenders, demanding the lenders “cease and desist” collection activities.
Norris and Hatcher also allegedly told individuals who were in financial difficulties due to credit card debt, vehicle loans, and other debt, that they would refinance the debt for a lower amount and interest rate and lower their monthly payments. These clients, likewise, would stop making payments to their lenders and instead make their monthly payments to RIP.
The federal indictment refers to victims from Lee’s Summit, Mo., St. Joseph, Mo., Gardner, Kan., Paducah , Ken., and North Wales, Penn. Victims and lenders suffered losses as a result of the conspiracy, including the loss of homes and vehicles (a specific dollar amount of the total loss is not identified in the indictment).
In addition to the conspiracy, Norris and Hatcher are charged together with nine counts of mail fraud and 10 counts of wire fraud.
Hatcher is also charged with one count of Social Security disability fraud. Hatcher allegedly failed to report her work activities and income while she received Social Security disability insurance benefits from August 2010 through April 2012.
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 Senior Litigation Counsel Linda Marshall and Assistant U.S. Attorney Brian P. Casey. It was investigated by the FBI, the U.S. Secret Service, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Social Security Administration – Office of Inspector General, the Johnson County, Kan., District Attorney’s Office and the Kansas City, Mo., Police Department.
State Employee Among Those Indicted for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a state employee is among three persons indicted for their roles in a conspiracy to commit marriage fraud in order to evade immigration laws.
Oleksandr Nikolayevich Druzenko, also known as “Alex” or “Sasha,” 32, of Jefferson City, Mo., Patricia Anne Ewalt, 60, of El Paso, Texas, and Darya Chernova, 38, of Chandler, Ariz., were charged in a four-count indictment returned under seal by a federal grand jury in Jefferson City on Oct. 3, 2012. The indictment was unsealed and made public today following Druzenko’s arrest and initial court appearance.
Druzenko, who is employed at the Missouri Office of Administration in Jefferson City, is a Ukrainian national who entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. Druzenko remains in federal custody pending a detention hearing.
According to the indictment, Druzenko and Ewalt (a U.S. citizen) were married on June 22, 2007, for the sole purpose of allowing Druzenko to remain in the United States. Under his student visa, Druzenko would have had to depart the United States within 60 days after graduation. Because of his marriage to Ewalt, Druzenko obtained lawful permanent resident status on Jan. 2, 2008.
Chernova, a friend of Druzenko’s, is also a Ukrainian who entered the United States on a student visa. In 2005 and 2006, the indictment says, she enlisted a U.S. citizen to marry her so that she could remain in the United States. She and another person (who is not identified in the indictment) allegedly assisted Druzenko in early 2007 to find a U.S. citizen to marry him so that he could remain in the United States and attempt to gain permanent resident status and potentially U.S. citizenship. They approached several persons, the indictment says, including one person with whom Druzenko procured a marriage license but who then declined to enter the sham marriage.
In March 2007, Druzenko was introduced to Ewalt. Chernova and at least one other person allegedly enlisted Ewalt to marry Druzenko so he could remain in the United States.
Druzenko, Ewalt and Chernova are each charged with participating in a conspiracy to commit marriage fraud in order to evade immigration laws.
In addition to the conspiracy, Druzenko and Ewalt are charged together in one count of marriage fraud and two counts of making false statements on immigration forms.
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 U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services.
Former Youth Director Indicted on Additional Child Exploitation ChargesRead the Press Release
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 on additional charges for taking a minor across state lines for illegal sexual activity. Today’s charges were added to an earlier indictment for viewing and receiving child pornography over the Internet.
Dennis W. Myers, 52, of Blue Springs, was charged in a five-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Myers formerly served as a youth director at churches in Independence, Mo., and in Arkansas. Today’s superseding indictment replaces an indictment returned on Dec. 12, 2012.
Today’s superseding indictment adds two additional counts of transporting a minor across states lines for illegal sexual activity. The indictment alleges that, on separate occasions between November 1993 and November 1995, Myers transported a child victim (identified as “Jane Doe #1”) across state lines to engage in sexual activity for which he could be charged with a criminal offense under Missouri statutes, that is, statutory sodomy or statutory rape.
The superseding indictment also contains all three counts that were part of the original indictment. The indictment contains the original allegations that Myers accessed the Internet in order to view child pornography between April 1 and Sept. 16, 2011. Myers is also charged with one count of receiving a video of child pornography over the Internet and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney 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."PrKearney Man Pleads Guilty to Child Porn, Faces at least 15 Years in PrisonRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kearney, Mo., man pleaded guilty in federal court today to producing and possessing child pornography.
Austin D. Hurtado, 19, of Kearney, pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan to the charges contained in a June 27, 2012 federal indictment.
According to today’s plea agreement, an FBI agent identified Hurtado’s computer (at his former residence in Smithville, Mo.) as sharing child pornography over the Internet. Using a peer-to-peer file-sharing program, the agent downloaded images of child pornography from Hurtado’s computer on Nov. 21 and 22, 2011.
Hurtado’s two laptop computers were seized by law enforcement officers and a forensic examiner found they contained numerous videos of an 8-year-old child in the shower. Hurtado’s face was visible in at least one of those videos. The forensic examiner also found the same child victim in additional numerous photos and videos of child pornography. Hurtado possessed 191 child pornography videos and more than 80 images of child pornography.
Hurtado is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $500,000. Under the terms of today’s plea agreement, Hurtado must pay a total of $10,000 in restitution to two of the victims portrayed in those images and movies, or $6,000 if he pays the restitution within 30 days of his sentencing date. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."