Western District of Missouri
Press releases recorded for this federal judicial district.
KC Man Sentenced to 10 Years for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to receive child pornography over the Internet.
Russell S. Nicholson, 36, of Kansas City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 10 years in federal prison without parole.
Nicholson pleaded guilty on Aug. 3, 2012. He was arrested after an officer with the Independence, Mo., Police Department, who was investigating child pornography offenses in an undercover capacity in conjunction with an officer with the Salem, Ore., Police Department, identified his computer as sharing files that contained child pornography.
Nicholson was using a peer-to-peer file-sharing program to share nine videos of child pornography with other users via the Internet. The videos depicted minors engaged in sexual intercourse and other sexual activity with adults and with other minors. The child victims in these videos were as young as three years old. Some of the videos depicted prepubescent children being subjected to penetration or attempted penetration by adult males, or being subjected to other sadistic or violent sexual activity.
Officers executed a search warrant at Nicholson’s apartment and seized three computers, which were found to contain evidence of child pornography. Nicholson admitted that he threw into a dumpster the laptop he had with him at the time he heard about the search warrant. He said he did this because he knew there was child pornography on the computer.
Nicholson admitted that he had been downloading child pornography over the Internet for approximately 10 years.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the FBI Cybercrime Task Force, the Independence, Mo., Police Department and the Salem, Ore., 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."Carl Junction Man Pleads Guilty to Child Porn, Faces 25 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man pleaded guilty in federal court today to receiving child pornography over the Internet.
James Lee Hagerman, 50, of Carl Junction, 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 two counts of receiving child pornography.
An officer with the Southwest Missouri Cybercrimes Task Force was conducting an online investigation into the sharing of child pornography on April 24, 2012, when he identified Hagerman’s computer as sharing over 100 files of child pornography through a peer-to-peer file-sharing program. The officer downloaded three of the files and determined that they contained depictions of children as young as two to four years of age engaged in sexually explicit conduct.
Law enforcement officers executed a search warrant at Hagerman’s apartment and seized his computer. Hagerman told officers that he had approximately 1,000 child pornography videos stored on his computer.
Under the terms of today’s binding plea agreement, Hagerman will be sentenced to 25 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Cabool Man Charged with Enticing a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Cabool, Mo., man was charged in federal court today with enticing a 14-year-old girl to engage in illicit sex.
Scott Dwayne Baker, 45, of Cabool, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo.
According to an affidavit filed in support of today’s criminal complaint, a Missouri State Highway Patrol trooper received a report on Saturday, Feb. 2, 2013, that a 14-year-old minor had received numerous text messages of a sexual nature from Baker. Baker was well aware of the minor’s age, the affidavit says. The trooper assumed the identity of the child victim and began communicating with Baker via cell phone text messages. During one text session, the affidavit says, Baker sent a pornographic image of himself to the child victim.
On Sunday, Feb. 3, 2013, the undercover officer continued a lengthy text message conversation with Baker during the Super Bowl. Baker sent explicitly sexual messages during this exchange, according to the affidavit. When the undercover officer informed him that the child victim was planning to skip school on Monday, the affidavit says, Baker replied by asking for her to skip school today instead, because he would be off work and they could meet at her house while she was at home alone. Baker was asked to bring a Dr. Pepper and a candy bar for the child victim.
When Baker arrived at the child victim’s residence at approximately noon Monday, Feb. 4, 2013, bringing the Dr. Pepper and candy bar, he was arrested by officers of the Missouri State Highway Patrol.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol, the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Lexington Business Owner Pleads Gulty to Filing False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lexington, Mo., business owner has pleaded guilty in federal court to filing a false income tax return.
Christopher Huffman, 49, of Lexington, pleaded guilty before U.S. District Judge Dean Whipple on Monday, Feb. 4, 2013, to the charge contained in an April 3, 2012 federal indictment.
Huffman is the owner of IG Construction, an asphalt and tree-trimming business formerly known as Interstate General Contractors. By pleading guilty today, Huffman admitted that he engaged in a scheme to falsely under-report the gross receipts for his business on his tax returns for tax years 2006-2008 in order to significantly reduce his income tax liability.
Huffman claimed business expenses almost equal to his gross receipts, so that his reported income was low enough to claim the earned income tax credit. The earned income tax credit is a refundable tax credit intended for workers earning a low to moderate income, which results in a tax refund for those whose credit exceeds the amount of taxes owed.
For tax years 2006 - 2008, while claiming he earned less than $20,000 per year, Huffman lived in and owned a house which he valued at $1.6 million and which had approximately 4,000 square feet, a 13-car garage, an in-ground pool/lake, and a volleyball court. Huffman bought a 2007 Cadillac Escalade, two classic Chevrolet Camaros, and two Harley Davidson motorcycles during this time.
In 2007, Huffman claimed in a loan application that he had $10,700 in cash and received a salary of $65,000, and listed his net worth at $2.4 million. In 2008, Huffman claimed in another loan application that he received a salary of $100,000 and that his net worth was almost $3 million.
Huffman admitted that, as a result of his fraud scheme, he caused a tax loss to the government of at least $300,000. However, the government intends to present evidence at Huffman's sentencing hearing that the tax loss actually exceeds $400,000.
Under federal statutes, Huffman is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000 and an order of restitution. 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 Kate Mahoney. It was investigated by IRS-Criminal Investigation.
Raymore Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raymore, Mo., man pleaded guilty in federal court today to possessing thousands of images of child pornography.
Malcolm J. Wolf, 32, of Raymore, pleaded guilty before U.S. District Judge Dean Whipple to one count of attempting to receive child pornography and one count of possessing child pornography. According to court documents, Wolf legally changed his name on April 8, 2011, from Jose Lorenzo Lopez.
Federal agents, while conducting an undercover investigation of a Web site sharing child pornography, identified Wolf’s computer as having accessed images of child pornography from the site in January 2011. When agents executed a search warrant at Wolf’s residence, they found six computers and seven loose hard drives that contained thousands of images of child pornography, including hundreds of movies of child pornography. The children depicted in those images and movies ranged in age from babies to teens.
Wolf is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $500,000. Under the terms of today’s plea agreement, Wolf must pay a total of $10,000 in restitution to two of the victims portrayed in those images and movies, or $6,000 if he pays the restitution within 30 days of his sentencing date. 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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."KC Man Sentenced to 26 Years in Prison for Illegal FirearmRead the Press Release
Project CeasefireKANSAS 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.
Damon L. Collier, 40, of Kansas City, was sentenced by U.S. District Judge Greg Kays to 26 years and eight months in federal prison without parole. Collier was sentenced as an armed career offender due to his prior felony convictions for serious drug offenses.
Collier was found guilty on Aug. 14, 2012, of being a felon in possession of a firearm. Evidence introduced during the trial indicated that Collier was in possession of a loaded AMT .380-caliber, 9mm Kurz pistol on July 23, 2011. At about 11 p.m. that day, Kansas City police officers responded to a report of a disturbance. Collier was inside an apartment in the 3500 block of Gillham Road, highly intoxicated, waving a gun around and yelling threats against two other people. When officers entered the residence, Collier immediately placed the gun on a table and was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Collier has eight prior felony convictions, including three prior felony convictions for possession of a controlled substance, two prior felony convictions for sale of a controlled substance, and prior felony convictions for distributing a controlled substance, trafficking drugs and attempted property damage. According to court documents, Collier was arrested for the federal offense while he was on parole for selling a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Bruce Clark and 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.Three Independence Residents Sentenced for Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Independence, Mo., residents were sentenced in federal court today for their roles in a series of armed robberies in Independence, during which one of the defendants was shot by a police officer.
Justin M. Epps, 23, Devontae A. Spears, 20, and Tairre Y. Matthews, 22, all of Independence, were sentenced in separate appearances before U.S. District Judge Greg Kays. Epps was sentenced to 10 years in federal prison without parole. Spears and Matthews were each sentenced to two years and six months in federal prison without parole.
Epps, Spears and Matthews each pleaded guilty to aiding and abetting each other in three armed robberies in Independence in late 2011 – at two 7-Eleven stores and a Papa John’s Pizza – in which they used what appeared to be handguns but were actually air pistols.
The co-defendants were arrested following the robbery of the 7-Eleven convenience store at 11001 E. 23rd St., Independence, on Nov. 3, 2011. On that day an Independence detective was conducting surveillance on the store and saw Epps and Spears, dressed in black, enter the store. Epps was carrying what appeared to be a handgun and had a back pack.
Epps, wearing a white plastic mask with eye holes, pointed the gun at the clerk, who went to the counter and took money from a cash drawer. The clerk also gave Epps money from a second cash drawer. Epps also took some unknown brand liquor, cigars, and possibly cigarettes from behind the counter. Epps asked for the clerk’s wallet and the clerk gave Epps $15 from his wallet. Epps asked for access to the 7-Eleven safe, which was present behind the counter, but the clerk advised Epps that he could not access the safe.
As they left the store, Epps and Spears were arrested by law enforcement officers who were positioned around the building. Epps was shot by law enforcement officers during his arrest after pointing what appeared to be a gun at them in a threatening manner, and was taken to the hospital. Spears was arrested without incident. Matthews, who was waiting in a vehicle parked nearby, was also arrested without incident.
Epps, Spears and Matthews admitted to participating in at least two other robberies, along with a couple of attempted robberies. Matthews admitted that she drove Epps and Spears to the 7-Eleven and participated with them in other robberies.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Independence, Mo., Police Department, the Kansas City, Mo., Police Department and the FBI.
Psychologist Sentenced for $1 Million Health Care FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a psychologist practicing in the Lebanon, Mo., area was sentenced in federal court today for engaging in a $1 million scheme to defraud Medicare and Medicaid.
“Those who defraud the government are stealing from the pockets of law-abiding taxpayers,” Dickinson said. “This psychologist flagrantly abused the system to enrich himself for more than three years, but today he is being held accountable for his actions.”
Rhett E. McCarty, 67, of Lake Ozark, Mo., was sentenced by U.S. District Judge Howard F. Sachs to three years in federal prison without parole. The court also ordered McCarty to pay $1 million in restitution to Medicaid and Medicare.
McCarty was a licensed psychologist and private practitioner who provided psychotherapy services to recipients of both Medicare and Medicaid in their homes in the Lebanon area. On Aug. 16, 2012, McCarty pleaded guilty to health care fraud and to forgery.
“Rhett McCarty violated the trust extended to him by the American taxpayers to provide medical services to our Medicare and Medicaid beneficiaries,” said Special Agent in Charge Gerry Roy of the Health and Human Services – Office of Inspector General. “He is now being held responsible for his violations. At HHS-OIG, we will continue to work with our federal and state law enforcement and prosecution partners to ensure the solvency and integrity of our federally-funded health care programs.”
Between Sept. 17, 2008, and April 5, 2012, McCarty submitted Medicare and Medicaid claims for daily or near daily psychotherapy services to 19 beneficiaries for which he was paid $1,276,334. According to the claims that McCarty submitted, he routinely saw beneficiaries seven days per week and worked long hours every day. Moreover, according to McCarty’s claims, he worked every single day of the calendar year from mid-September 2008 through early April 2012, except for Christmas day. McCarty routinely billed for every weekend day and for all holidays except Christmas day.
Although McCarty did provide some services for most of these beneficiaries, he admitted that he did not see those beneficiaries more than once a week. McCarty also admitted that the amount he was paid by Medicare and Medicaid for services he did not provide to these 19 beneficiaries was $1 million.
McCarty also admitted that he forged (or caused another person to forge) the signatures of five of the beneficiaries on patient sign-in sheets in order to obtain $418,507 in Medicare and Medicaid payments.
This case was prosecuted by Assistant U.S. Attorney Lucinda S. Woolery. It was investigated by Health and Human Services – Office of Inspector General, the FBI and the Medicaid Fraud Control Unit.KC Man Sentenced for Attempting to Carry Loaded Handgun onto AirplaneRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to board an aircraft with a concealed dangerous weapon after a loaded handgun was discovered by screeners in his carry-on luggage at Kansas City International Airport.
Anthony Winn, 27, of Kansas City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to six years in federal prison without parole.
Winn pleaded guilty on May 25, 2012, to attempting to get on an aircraft with a concealed dangerous weapon. He also acknowledged that he was a felon who illegally possessed the firearm, a Glock 9mm handgun with 22 live rounds of ammunition in the magazine and one live round of ammunition in the chamber. Winn has several felony convictions including unlawful use of a weapon, attempted first degree burglary, first degree burglary and second degree burglary.
An x-ray machine operator at the Delta terminal at Kansas City International Airport saw Winn place his carry-on bag on the x-ray belt to be examined by Firstline Security screeners on Dec. 28, 2011. The x-ray machine operator observed on the monitor what he believed to be the image of a loaded firearm inside the carry-on bag. Officers with the Kansas City International Airport Police were contacted and found the firearm when they inspected Winn's bag.
Winn was arrested and searched; officers removed $4,906 from his pants pockets, along with boarding passes to travel one-way from Kansas City, Mo., to Minneapolis, Minn., then to Tucson, Ariz. Kansas City, Mo., police officers later found $26,515 in various pockets of three pairs of men's jeans that were in the carry-on bag.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Kansas City International Airport Police, the Kansas City, Mo., Police Department, the Department of Homeland Security and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Monett Man Sentenced for Obscenity; Possessed Cartoons of Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Monett, Mo., man was sentenced in federal court today for possessing cartoons that depicted child pornography.
Christjan Bee, 36, of Monett, was sentenced by U.S. District Judge Dean Whipple to three years in federal prison without parole, followed by five years of supervised release.
On Oct. 15, 2012, Bee pleaded guilty to possessing an obscene image of the sexual abuse of children. The pornographic cartoon, which depicted children engaging in sexual behavior, is categorized as obscene and therefore illegal. The original indictment, which charged Bee with receiving child pornography, was dismissed today as part of the plea agreement.
On Aug. 8, 2011, Bee’s wife contacted the Monett Police Department and reported that she had found files she believed to be child pornography on a computer used by her husband. Police officers executed a search warrant at Bee’s residence and seized his computer.
During the forensic examination of Bee’s computer, a collection of electronic comics, entitled “incest comics,” were discovered on the computer. These comics contained multiple images of minors engaging in graphic sexual intercourse with adults and other minors. The depictions clearly lack any literary, artistic, political or scientific value.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Monett, 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."Chinese Business Owner, Employee Plead Guilty, Sentenced for Stealing Trade Secrets from Sedalia PlantRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chinese business owner and his employee pleaded guilty and were sentenced in federal court today for conspiring to steal trade secrets from Pittsburgh Corning Corporation, which has a manufacturing plant in Sedalia, Mo., that produces FOAMGLAS® insulation.
“These defendants intended to inflict significant economic harm on an American corporation for their own illicit profit,” Dickinson said. “Theft of trade secrets from U.S. companies by foreign businesses is a national concern. Such thefts can cripple U.S. companies in the marketplace and cost the jobs of workers in the United States. Well-heeled business owners like Huang are put on notice that theft from U.S. companies will be prosecuted and will be punished.”
Ji Li Huang, 46, and Xiao Guang Qi, 32, both citizens of China, pleaded guilty before U.S. District Judge Brian C. Wimes to participating in a conspiracy to steal trade secrets. Huang is the CEO of Ningbo Oriental Crafts Ltd., which employs 200 factory workers to manufacture promotional products for export to the United States and Europe. Qi was his employee.
Huang was sentenced to 18 months in federal prison without parole and ordered to pay a fine of $250,000. Qi was sentenced to time served and ordered to pay a fine of $20,000. Both of the fines were paid today.
“A crime of this nature provides an unfair advantage to competing industries based solely upon an individual, a company or a foreign power’s ability to cheat and steal proprietary information,” stated Michael Kaste, Special Agent in Charge of the Kansas City Division of the FBI. “This results in a significant impact to the economy, a devastating result to the businesses targeted and a threat to the economic security of the United States.”
Pittsburgh Corning, headquartered in Pittsburgh, Penn., manufactures various grades or densities of cellular glass insulation sold under the trade name FOAMGLAS®. That material is used to insulate buildings, industrial piping systems and liquefied natural gas storage tank bases. Pittsburgh Corning’s customers include energy companies, petro chemical companies, and natural gas facilities. Pittsburgh Corning considers the product formula and manufacturing process for FOAMGLAS® proprietary and trade secrets.
By pleading guilty today, Huang and Qi admitted that they attempted to illegally purchase trade secrets of Pittsburgh Corning for the purpose of opening a plant in China to compete with Pittsburgh Corning.
Under the federal sentencing guidelines, Huang and Qi are held accountable for any reasonably foreseeable loss that would have resulted from their crime. The court ruled that the intended loss to Pittsburgh Corning exceeded $7 million, based on the company’s investment of time and resources to research, develop and protect the proprietary information the defendants attempted to steal.
Huang and Qi were arrested when they met with an individual they believed to be an employee of Pittsburgh Corning who had stolen documents that contained trade secret information and was willing to sell it to them for $100,000. That employee, however, was cooperating with law enforcement and the meetings in Kansas City were a sting operation that led to their arrests on Sept. 2, 2012.
On July 22, 2012, an advertisement was published in the local newspaper that solicited “technical talent” with experience at Corning Pittsburgh to lead a project to build a foam glass factory in the Asian market. A confidential source – working with the FBI – responded to the contact e-mail address cited in the newspaper advertisement. While in the United States for business, Huang met with the cooperating source. They agreed that $25,000 would be exchanged upfront (with $75,000 to follow later) for a package of Pittsburgh Corning’s processes and formulary on FOAMGLAS®. They also discussed paying the cooperating source to travel to China several times for consulting.
On Sept. 1, 2012, the cooperating source met with Huang and Qi at a Kansas City restaurant. Qi participated in the meeting and also acted as a translator for Huang for parts of the conversation. A follow-up meeting was scheduled for the next day, at which the cooperating source would bring the stolen proprietary information and Huang and Qi would bring the payment. The cooperating source told Huang and Qi that he had to drive back to Pittsburgh Corning and break into the engineering department to steal the documents and drawings for the equipment.
The next day, Huang and Qi met the cooperating source at a prearranged location and brought a bag containing the money. The cooperating source showed them documents that were purportedly Pittsburgh Corning’s trade secret information, some of which were stamped with secret and confidential markings. Shortly afterward, FBI agents arrested Huang and Qi at their hotel room.
The court ordered Huang and Qi to forfeit to the government $29,778 that was seized by law enforcement officers at the time of their arrest, which the defendants had brought to the United States in order to illegally purchase trade secrets.
This case was prosecuted by Assistant U.S. Attorneys Brian Casey and Matt Wolesky. It was investigated by the FBI.
KC Man Sentenced to 10 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.
Thomas D. Clegg, 29, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole, the statutory maximum sentence.
Clegg, who pleaded guilty on Sept. 26, 2012 to being a felon in possession of a firearm, was arrested on May 4, 2012. According to court documents, Kansas City, Mo., police officers responded to the area of I-70 and Sterling to locate a suspect and a Yellow Cab that had been taken in an earlier carjacking. The cab driver reported that his cell phone had been taken and police officers were able to ping the phone to determine its location. The officers located the victim’s cab and went into the IHOP restaurant, where they located Clegg sitting alone in a booth.
The officers asked Clegg to step out of the booth and he attempted to push past the officers and flee. Clegg struggled violently and the officers had to deploy a taser to take him into custody. Officers searched Clegg and found a loaded 9mm Taurus semi-automatic handgun in his left front pants pocket. The victim’s cell phone was recovered from Clegg and returned to the victim.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Clegg has two prior felony convictions for possession of a controlled substance and prior felony convictions for unlawful use of a weapon, trafficking drugs, voluntary manslaughter, firing a weapon from a motor vehicle causing injury or death, armed criminal action and assault.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.
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.Joplin Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a sex offender from Joplin, Mo., pleaded guilty in federal court today to possessing child pornography.
David Wayne Morgan, 56, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing child pornography. Morgan, a registered sex offender, was convicted of statutory sodomy with a 4-year-old victim in 1997.
Under the terms of today’s plea agreement, Morgan will be sentenced to 10 years in federal prison without parole.
On May 1, 2012, members of the Southwest Missouri Cybercrimes Task Force, in conjunction with other state and federal law enforcement agencies, conducted a sexual offender registration compliance check. Law enforcement officers contacted Morgan at his residence. Morgan led the investigators into his home and immediately began disconnecting various devices from his computer system. Morgan allowed officers to search his computer and storage devices. Investigators found multiple images of child pornography on the computer.
A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force.
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."Clean Water Act ViolationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Taney County, Mo., man pleaded guilty in federal court today to submitting false water samples for testing from a wastewater treatment facility that dumped raw, untreated sewage into Table Rock Lake for much of 2008.
Bruce Raymond Morris, 63, of Taney County, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with making false statements in violation of the Clean Water Act.
Morris was employed by Light Environmental, Inc., which provides environmental and waste treatment services. Landmarc Estates, a Taney County subdivision, hired Light Environmental to operate its wastewater treatment facility, to conduct wastewater sampling at the facility, and to submit wastewater sample results to the Missouri Department of Natural Resources as required by its federal permit. Morris was responsible for operating the wastewater treatment facility serving Landmarc Estates from March 2008 to January 2009.
The Landmarc Estates wastewater treatment facility was located less than 100 yards from Table Rock Lake. It discharged into a roadside ditch, and from there the discharged materials flowed downhill into Table Rock Lake. From March 2008 to January 2009, the Landmarc Estates facility did not properly treat its wastewater. Its electrically-operated motor, providing the only source of operating power for the facility, was inoperable for this entire period. As a result, raw, untreated sewage was released into the roadside ditch, and that untreated sewage flowed directly into Table Rock Lake.
Morris knew the Landmarc Estates facility did not properly treat its wastewater, and was in violation of its permit. As operator of the facility, Morris was responsible for its upkeep and repair; however, Morris did not repair the facility. Knowing that wastewater samples taken from the facility would not pass state tests, Morris substituted test samples from another wastewater treatment facility. Morris submitted those substituted test samples for biochemical analysis, falsely certified on the quarterly Wastewater Discharge Monitoring Reports that the test samples and laboratory test results were for the Landmarc Estates facility, and caused those false reports to be submitted to the state.
According to today’s plea agreement, a state inspector found at least 10 violations by the wastewater treatment facility, the most egregious of which was that raw, untreated sewage was released directly into the environment.
Under federal statutes, Morris is subject to a sentence of up to two years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri Department of Natural Resources and EPA Criminal Investigation Division.
West Plains Man Pleads Guilty to Receiving Child Porn over the InternetRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man pleaded guilty in federal court today to receiving child pornography over the Internet and possessing child pornography.
Scott Allen Johnson, 26, of West Plains, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in an Aug. 29, 2012 federal indictment.
An officer with the Southwest Missouri Cyber Crimes Task Force identified Johnson’s computer as sharing images of child pornography on a peer-to-peer file-sharing network on Dec. 30, 2011. The officer connected with Johnson’s computer on the network again on Jan. 9, 2012 and was able to determine that he had 322 files available for sharing, of which 139 were identified as known files depicting child sexual abuse. Officers executed a search warrant at Johnson’s residence on Feb. 9, 2012 and seized a laptop computer, four computer towers and 42 optical media disks.
Investigators found approximately 219 images and 46 movie files of child pornography on the laptop computer. The ages of the child victims ranged from 2 to 12, and the images depicted scenes of sexual intercourse, oral sex, anal sex, child bondage, bestiality and nudity.
Under federal statutes, Johnson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $500,000. Johnson must also forfeit the computer used to distribute and possess child pornography. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force (SWMCCTF), the Cassville, Mo., Police Department and the Howell County, Mo., Sheriff’s Department.
KC Man Pleads Guilty to Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri Kansas City, Mo., announced that a Kansas City, Mo., man pleaded guilty in federal court today to child sex trafficking and producing child pornography, which was discovered during an investigation into an extortion and blackmail scheme.
Corey M. McKinney, also known as “Chef FireFlame Corey,” 36, of Kansas City, pleaded guilty before U.S. District Judge Greg Kays. McKinney’s plea came during the second day of his trial on the charges contained in an Aug. 30, 2011, federal indictment.
By pleading guilty today, McKinney admitted that he was sexually active on numerous occasions with the child victim since she was 14 years old, identified in court documents as “CV.” McKinney, who was the legal guardian of CV, admitted that he used computers and video equipment to record sexual activity between himself and CV. McKinney also admitted that he caused CV to engage in prostitution as part of an extortion and blackmail scheme.
On March 24, 2011, McKinney was hiding in the bedroom closet while CV was having sex with a man identified in court documents as “John Doe.” John Doe had just met CV, whom he believed to be 17 years old, on Facebook the day before. McKinney secretly recorded the sexual encounter on his cell phone and on a nearby computer.
John Doe returned to the apartment the next day to have sex again. McKinney burst into the room, asking John Doe if he knew how much trouble he could get into because his sister was only 16 years old. John Doe did not know that the girl was actually 16 years old, or that McKinney had recorded the earlier illicit encounter. He did not know that the 16-year-old girl was not actually McKinney’s sister, but rather was a former neighbor that McKinney himself – a 34-year-old man at the time, a few years older than John Doe – had been exploiting sexually.
After demanding $500 in exchange for not exposing John Doe to his family, friends, employer, or the authorities, McKinney made John Doe go with him to a nearby ATM to get some form of this payment. John Doe was only able to pay $100 at that time and McKinney demanded that he pay the balance in the next few days.
After this encounter, John Doe received a flurry of text messages from McKinney, who made threats and demanded money. McKinney claimed he sent the video file to a friend who worked at a local news agency. He also attempted to confront John Doe by arriving unannounced at his home. After numerous texts and an attempted in-face confrontation, John Doe approached the authorities and advised them of the extortion attempts. The text message threats from McKinney continued, and soon John Doe learned that McKinney was posting information about him and his wife on his Facebook page. Eventually, an exchange was arranged (through the direction of the Kansas City Police Department) to pay the remainder of the money in exchange for a USB drive with the video on it.
On April 7, 2011, McKinney was arrested at DeVry University in Kansas City, Mo. (where he was a student) after he exchanged a USB drive containing the video for money that he had been demanding from John Doe. Evidence uncovered during the investigation included various videos and images constituting child pornography with McKinney engaged in sexual activity with the same child victim. When investigators searched the minor’s cell phone, they found several sexually explicit photos of McKinney and the minor as well as sexually explicit photos of John Doe and the minor.
McKinney admitted that while he was incarcerated after his arrest he called the child victim dozens of times in repeated efforts to get her to recant her prior statements and testimony and persuade her to submit a statement on his behalf in the hopes of getting the charges against him dismissed.
Under federal statutes McKinney is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Brian P. Casey. It was investigated by the Kansas City, Mo., Police Department and the FBI in conjunction with the Human Trafficking Rescue Project.Former Bank Examiner Sentenced for Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former bank examiner for the Federal Deposit Insurance Corporation (FDIC) was sentenced in federal court today for participating in a mortgage fraud scheme involving the sale of his house in Lee’s Summit, Mo.
Rodney Foster, 47, of Lee’s Summit, was sentenced by U.S. District Judge Brian C. Wimes to 12 months in federal prison without parole. Foster was taken into custody immediately after the hearing to begin serving his sentence.
On July 20, 2012, Foster was convicted of participating in a conspiracy to commit aggravated identity theft and wire fraud from Nov. 28 to Dec. 9, 2005, related to the sale of the Lee's Summit residence.
Foster and his co-conspirators obtained names, birth dates and Social Security numbers of others, without their knowledge or permission. They used this stolen identity information to apply for mortgage loans to purchase real estate. Conspirators used the stolen identities to disguise the fact that they did not have sufficient credit to purchase the properties using their own identities. Conspirators deposited the proceeds of the mortgage loans in fraudulent bank accounts of non-existent businesses in order to take cash out of each transaction.
Foster acted as a mortgage broker for the sale of the residential property in Lee=s Summit, which belonged to he and his wife (they have subsequently divorced). Foster agreed that the property could be sold for $280,000 to a straw buyer through the mortgage fraud scheme, with the proceeds split among Foster and the other conspirators. Foster knew the appraisal for the residence had been fraudulently inflated in order for conspirators to receive cash out of the purchase based on artificial equity. A portion of the proceeds – approximately $56,000 – was wired to a fraudulent bank account in the name of an identity theft victim.
Several of Foster's co-conspirators, who were not charged in this indictment, have been convicted in separate cases related to the Lee’s Summit residence and other similar schemes.
This case was prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by Federal Deposit Insurance Corporation, Office of Inspector General, the U.S. Secret Service and IRS-Criminal Investigation.
Excelsior Springs Man Sentenced for $3.5 Million Securities Fraud, False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Chris Koster, Missouri Attorney General, announced that an Excelsior Springs, Mo., man was sentenced in federal court today on charges related to several investment schemes in which at least a dozen victims lost more than $3.5 million.
Daniel Meredith, 51, of Excelsior Springs, was sentenced by U.S. District Judge Brian C. Wimes to 11 years in federal prison without parole, which is the longest penalty recommended under the federal sentencing guidelines. The court also ordered Meredith to pay $3,572,526 in restitution to his victims.
On Aug. 7, 2012, Meredith pleaded guilty to one count of securities fraud and two counts of filing false tax returns. Meredith admitted that he obtained more than $3.5 million by defrauding at least 12 victims in Missouri and Kansas through various schemes through the end of March 2012. His victims were his friends and neighbors. Five of the victims invested hundreds of thousands of dollars and one victim lost millions of dollars. According to court documents, Meredith cheated one victim out of an additional $28,000 several months after confessing his crimes to federal authorities, while he was negotiating his guilty plea. One victim was forced to file for bankruptcy as a result, according to court documents, and an elderly victim’s life savings was decimated, causing his family severe financial hardship.
Meredith’s fraud schemes included a Bolivian land scheme and fake Scooter’s Coffeehouse franchise agreements. Instead of investing their money as promised, he lost it at the blackjack tables at Ameristar and Isle of Capri. He spent the rest on extravagant purchases, including fine horses, lavish trips and a beautiful rental home near Excelsior Springs on acreage with private stables.
Bolivian Land Scheme
Meredith solicited investors beginning in 1995 to collect money for his purported Bolivian land deal. Meredith told prospective investors that his father had been in the CIA in the 1960s and that somehow he had a special opportunity to obtain valuable property in Bolivia. Meredith said his land is comprised of 300,000 acres, including a mansion, an air strip, oil fields, gold mines, and other valuable attributes. He promised investors lavish returns on their investments.
Meredith told elaborate false tales to convince investors to continue giving him money. To keep investors interested, he would tell tales of purported telephone calls with former President Bill Clinton, and he circulated a Photoshopped picture of himself with President George W. Bush. Meredith claimed to know the president of Bolivia and claimed Bolivian citizenship. Meredith claimed he once met with George Bush and that they flew down to Crawford, Texas. He frequently claimed that he was flying out of Whiteman Air Force Base to meet with government officials in Washington, D.C., Crawford and elsewhere. He also provided false excuses why he could not pay their money back.
Meredith went to great lengths to make these stories seem plausible, even paying someone to pose as an NSA agent. Meredith spun tales of a hijacked plane and provided an investor with a locked briefcase purportedly containing a fortune, but actually containing bricks.
Meredith admitted that he defrauded one victim out of $1.87 million and other victims out of an additional $950,000. One of the checks written by an investor in August 2007 was used in part to pay a cabinet-maker who had worked on Meredith’s former home. The cabinet-maker said that Meredith was “throwing around $100 bills.” Meredith gutted the house and rebuilt the inside in extravagant fashion, which included tile floors in the garage with his initials.
Scooter’s Coffeehouses
From May 15 to June 30, 2007, Meredith solicited money from individuals for investment in purported Scooter’s Coffeehouses when, in actuality, he had no connection with Scooters. Meredith received $90,000 from two victims who believed that they were investing in Scooter’s Coffeehouses. One victim also provided Meredith with an additional $25,000 in cash. Meredith used the money for gambling and other personal expenses. Meredith did not pay these victims back.
Meredith told one of these victims that his father ran the Meredith Publishing Corporation in Des Moines. The Missouri Attorney General’s Office received a letter from the General Counsel of the Meredith Corporation stating: “…a man named Dan Meredith…has on occasion been making representations that he has access to, and perhaps will inherit, the fortune of the Meredith family. He uses this supposed connection to lure others into questionable business deals. The Meredith family obviously is greatly troubled by these false representations and wants them to cease immediately. Dan Meredith’s actions are particularly troublesome to the Meredith family because our research indicates that he has a prior criminal record, including incarceration.”
Tax Fraud
In 2006 and 2007, Meredith received $510,900 from others under false pretenses. He did not use the money for the purposes intended, and he did not report this income on his tax returns. According to today’s plea agreement, Meredith has an additional tax due and owing for 2006 and 2007 of $139,679.
Although he was required to do so, according to the plea agreement, he did not file returns for 2008 through 2010. During those years, Meredith received at least $1.6 million from the Bolivian land scheme. The total dollar amount Meredith received from his schemes but did not pay taxes on is at least $3.5 million.Use of Proceeds
Meredith owns multiple horses and spends significantly on horse-related items and activities. For example, Meredith wired $19,550 to Oklahoma in 2010 to purchase three horses.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson and Missouri Assistant Attorney General Lauren Barrett. It was investigated by IRS-Criminal Investigation, the Missouri Attorney General’s Office and the Missouri Department of Revenue, Criminal Tax Investigation Bureau.
Meredith had an extensive gambling habit. For 2007 alone, Meredith’s losses tracked at Ameristar Casino totaled $76,454. From 2008 through October 2011, Meredith’s losses totaled an additional $555,863.Lebanon Man Pleads Guilty, Faces 20 Years in Prison for Coercing a Minor to Become a Sex SlaveRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., man pleaded guilty in federal court today to using the Internet to groom and entice a minor girl into illegal sexual conduct that led to years of sadomasochistic abuse.
“Today’s guilty plea brings closure to a shocking and horrific case,” Dickinson said. “Six defendants now have been brought to justice for their roles in the brutal sexual torture and enslavement of a young woman who was just a teenager when the victimization began.
“The Human Trafficking Rescue Project continues to lead the nation by breaking new ground in trafficking cases,” Dickinson added, “prosecuting both the supply and the demand, both the sex traffickers and their customers.”
Edward Bagley, Sr., also known as “Master Ed,” 45, of Lebanon, pleaded guilty before U.S. District Judge Dean Whipple to enticing a minor into illegal sexual conduct. Under the terms of today’s binding plea agreement, Bagley will face 20 years in federal prison without parole. The court will also order Bagley to pay restitution to his victim.
“Both the interest of the victim and the cause of justice have been served today,” Dickinson said. “The victim is spared having to endure a difficult trial and she can continue her healing process.”
Bagley met the female victim (identified in court documents as FV) in 2002, when she was 16 years old and dating his teenage son. FV visited his trailer residence in Lebanon on numerous occasions. Bagley knew that FV grew up in foster care, came from a troubled home life and had suffered emotional, physical, and sexual abuse in her past. He also knew that FV suffered from mental deficiencies and had previously sustained a traumatic head injury.
During FV’s visits to Bagley’s residence, he showed her images and videos of pornography on the Internet and downloaded from the Internet, including images and videos of bondage and sadomasochistic conduct. Bagley admitted that he provided FV with controlled substances. He taught her about bondage and sadomasochistic activities. His wife, co-defendant Marilyn Bagley, 47, modeled stripper and bondage clothing for FV. The Bagleys told FV that she would love being a “slave” for him. Bagley began a sexual relationship with FV prior to her seventeenth birthday.
FV viewed Edward Bagley as her boyfriend and moved into the Bagleys’ residence in 2003. They provided FV her own room and clothes, and promised her a great life.
Over the course of the next six years, Edward Bagley executed sadomasochistic acts on FV, including sewing her vagina closed, whipping and flogging her body, penetrating her breasts with needles and skewers, suffocating her with plastic bags, strangling her with rope, putting her in a dog cage, and electrocuting FV’s sexual organs with devices which produced electrical voltage. Edward Bagley photographed and videotaped many of the acts he performed on her.
Edward Bagley is the sixth and final defendant to be convicted in this case. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Five defendants have pleaded guilty to their roles in a conspiracy to commit sex trafficking by force, fraud or coercion. This is the first time nationwide that the customers, or “Johns,” have been convicted under the Trafficking Victims Protection Act in a sex trafficking case in which the victim was an adult.
Marilyn Bagley pleaded guilty on Dec. 6, 2012, to her role in the conspiracy. According to Marilyn Bagley’s plea agreement, the victim was subject to sadistic acts of torture that increased in quantity and intensity over a six-year time period. They involved, for example, strangulation, suffocation, breast and vaginal penetration with skewers, and electrical voltage. FV would be punished if she did not do as instructed.
Marilyn Bagley admittedly knew that other individuals, including four co-defendants who have pleaded guilty in this case, came to the residence to engage in sexual conduct and sadistic acts on FV. They provided bondage pornography, meat, cigarettes, and cash, among other items, in exchange for the sessions involving sexual conduct and sadistic acts on FV.
Under the terms of her binding plea agreement, Marilyn Bagley will receive a sentence of probation. The government stated in court that Marilyn Bagley is considered in a separate category from the other defendants in this case because she was a victim of extensive physical and emotional abuse for over 25 years prior to her criminal conduct and participation in the conspiracy. Her participation in the criminal conduct resulted in the abuse being redirected away from her and to the victim.
Co-defendant Michael Stokes, also known as “The Rodent,” 47, of Lebanon, pleaded guilty on Jan. 5, 2012, to participating in the conspiracy.
Stokes became familiar with FV in 2006 when he received pictures of her over the Internet in which she was naked with whip marks over her body. Stokes was told that the victim was a slave for “life” who was tortured for hours at a time and was required to do “everything and anything” she was told. After a few weeks of chatting online, the plea agreement says, a co-conspirator brought the victim to Stokes’ house so she could do a “demo” for him. When they arrived at Stokes’ residence, bringing a duffle bag of torture devices with them, FV was instructed to “put on a show for us.” FV was naked, wearing only dog collars and ankle collars with locks. Stokes was asked whether he wanted to have sex with her. Stokes said “yes” and he had sex with FV.
Stokes was stunned that “someone had that much control over someone” and “had never seen anything like it.”
Stokes began visiting the residence where FV was being held. During his first visit, he was shown a photo of FV’s vaginal opening sewn shut and told this was done to demonstrate “what was expected of her.” FV was present for these statements and remained silent. FV never talked back or spoke up. FV never offered herself to Stokes and only acted on command.
Stokes visited the residence eight to 12 times. During these visits, he would receive sexual acts or be allowed to watch or participate in torturing FV. When he visited he brought steaks, hamburgers, jackets, personalized playing cards, lighters, cigarettes, and cash. Among other things, he witnessed FV being tortured with a crank phone, with electricity shot through devices clamped to her vaginal and anal openings.
Stokes began assisting in promoting FV at the strip clubs. Stokes took photos of FV around to the clubs to promote her there. Stokes gave $1,000 so that FV could be taken for a sexual bondage photo shoot in California for Taboo magazine. Stokes then took a copy of the magazine to promote her at the clubs. The photos in Taboo magazine were extremely mild and did not depict any of the cruel sessions Stokes had witnessed at the residence.
In 2009, Stokes was warned that there was an FBI investigation involving his conduct with FV. Stokes went on his computer and deleted hundreds of photos, his contacts with other females online, pictures of FV that he saved, and destroyed his copies of Taboo magazine and the sexual devices that he had acquired.Under federal statutes, Stokes is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
Co-defendant Bradley Cook, also known as APutHer2GoodUse,@ 34, of Kirkwood, pleaded guilty on Dec. 20, 2011, to participating in the conspiracy.
From 2006 to 2009, Cook watched the victim being sexually abused and tortured in live online sessions and as depicted in photos and videos that he downloaded from the Internet. Cook admitted that he traveled to Lebanon on multiple occasions during that time to engage in sessions of sexual acts and torture with the victim. In exchange, Cook paid the victim=s Amaster@ for these sessions with such items as computer hard drives that contained images and videos of bondage, domination, sadism and masochism, which he had downloaded from the Internet.
Cook also admitted he was aware of other men who engaged in sexual acts and torture with the victim. He witnessed the victim being whipped and locked in a dog cage, as well as being tied up and shocked with multiple electrical devices. Cook described the abuse suffered by the victim as the Amost extreme@ he had ever seen.
Under the terms of a binding plea agreement, Cook is subject to a sentence of 20 years in federal prison without parole. Cook must also pay restitution to the victim. In addition to the sentence of imprisonment, the court may impose a term of supervised release up to life. Cook must also forfeit to the government the computer media he used to commit the offense.
Co-defendant Dennis Henry, 53, of Wheatland, formerly the postmaster of Nevada, Mo., pleaded guilty on March 24, 2011, to participating in the conspiracy. Henry also pleaded guilty to transporting the victim across state lines for sexual activity.
Henry admitted that he engaged in sex with the victim, and participated in torture sessions with FV that would last for hours. Henry saw pictures of FV=s vagina sewn shut, which he was told was a form of punishment. Henry also admitted that he visited FV at a Lebanon strip club where she was forced to work.
Under federal statutes, Henry is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution.
Co-defendant James Noel, 47, of Springfield, pleaded guilty on Feb. 24, 2011, to participating in the conspiracy. Noel admitted that he was one of the customers who sexually abused and tortured FV. Noel watched the victim being tortured and sometimes operated torture devices himself beginning in 2006, when she was approximately 20 years old. For example, Noel knew that FV hated being electrocuted with a crank phone (which was wired inside FV=s vaginal and anal openings and to her toes), which he described as Aextremely painful,@ but he used it on her anyway.
Under federal statutes, Noel is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
This case is being prosecuted by Assistant U.S. Attorneys Cynthia L. Cordes, Paul Becker and John Cowles with assistance from the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
Project CeasefireKANSAS 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.
Roderick E. Taylor, 29, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Taylor was sentenced as a career criminal due to his prior felony convictions.
On Aug. 30, 2012, Taylor pleaded guilty to being a felon in possession of a firearm. Taylor was arrested by Kansas City police officers on Jan. 29, 2012, while driving a stolen vehicle. An officer found a loaded Kel-Tec 9mm semi-automatic handgun, with a live round in the chamber and the safety off, tucked in Taylor’s shoe. The handgun had been stolen from an owner in Independence, Mo.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Taylor has three prior felony convictions for burglary, one prior felony conviction for attempted burglary, and one prior felony conviction for assault on a law enforcement officer.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. 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.Business Manager Sentenced for Tax Evasion in $257,000 Embezzlement SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., woman was sentenced in federal court today for tax evasion related to unreported income from the theft of more than $257,000 from her employer.
Christine Diane Todd, 37, of Columbia, was sentenced by U.S. District Judge Nanette Laughrey to 15 months in federal prison without parole. The court also ordered Todd to pay $318,938 in restitution.
Todd was employed as the branch credit manager for Major Brands, Inc., in Columbia. Todd, who pleaded guilty on Nov. 28, 2011, admitted that she engaged in a scheme to defraud Major Brands and its customers from January 2003 to October 2006.
In her position as credit manager, Todd’s duties included processing payments that were received from customers, including both cash received from truck drivers and/or salesman and checks that were received in the mail. Todd admitted that she stole a portion of the cash received from the customers, totaling $257,688 over the four-year period.
Todd pleaded guilty to making an income tax return that falsely reported her income in 2005. Todd’s 2006 income tax return did not report $100,832 that she embezzled from Major Brand Foods in 2005.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by IRS-Criminal Investigation, the FBI and the Columbia, Mo., Police Department.
Tammy Dickinson Sworn in as United States AttorneyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson has taken the oath of office to become the United States Attorney for the Western District of Missouri. Dickinson was nominated by President Obama in July 2012 and confirmed by unanimous consent of the U.S. Senate on Jan. 1, 2013. She took the oath of office late yesterday from U.S. District Judge Beth Phillips, the former U.S. Attorney.
“I’m honored to serve as the U.S. Attorney for the Western District of Missouri,” said Dickinson. “I would like to thank President Obama, Congress, and especially Senators McCaskill and Blunt for their support.
“As a career state prosecutor, I look forward to working with my colleagues and law enforcement partners at the federal level,” Dickinson said. “The U.S. Attorney’s Office has earned the respect of our community and a reputation for pursuing justice and enforcing the law without prejudice. I will strive to uphold that proud tradition.”
As U.S. Attorney, Dickinson is the top-ranking federal law enforcement official in the Western District of Missouri, which includes Kansas City, St. Joseph, Columbia, Jefferson City, and Springfield. She oversees a staff of 127 employees, including 64 attorneys and 63 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Dickinson, a Kansas City, Mo., native, has been a trial attorney her entire legal career. She has been the Chief Trial Assistant for the Jackson County Prosecutor’s Office since 2002 after working as an assistant prosecutor in that office beginning in 1998.
Dickinson received her J.D. in 1998 from the University of Missouri - Kansas City School of Law and her B.A. in 1989 from Webster University. She is a member of the Missouri Bar Association and the Kansas City Metropolitan Bar Association.Jury Convicts Kansas Man of Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Leawood, Kan., man was convicted in federal court today of mortgage fraud.
Jon Nevins, 40, of Leawood, Kan., was found guilty of all four charges contained in a Feb. 1, 2012, federal indictment.
Nevins was found guilty of participating in a conspiracy to commit wire fraud and money laundering from June 12 to July 14, 2006. Nevins was a straw buyer in the conspiracy, which was part of a $657,768 mortgage fraud scheme in which Nevins and co-defendant Craig A. Chambers, 47, of Shawnee, Kan, submitted false documentation in support of a mortgage loan application for a residence in Overland Park, Kan. Chambers, a former Gladstone police officer, worked as a mortgage broker during the criminal conspiracy.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts to U.S. District Judge Dean Whipple, ending a trial that began Monday, Jan. 7, 2013.
In May or June of 2006, Chambers assisted a client with the sale of his residence in Overland Park. Although the client had been unsuccessful in selling the residence at the asking price of $592,000, Chambers told him he had a buyer – Nevins – who would purchase the residence for $649,000, based upon an inflated appraisal. The client would have to pay Nevins $75,000 after the sale closed, which he agreed to do.
On June 22, 2006, Chambers and Nevins executed a mortgage loan application in the amount of $649,000. On June 30, 2006, the sale of the residence closed at a title company in Gladstone, Mo. Nevins, acting as a buyer, signed the HUD-1, certifying that all loan proceeds were disbursed in accordance with the stated payouts in the HUD-1. However, the HUD-1 did not disclose the material fact that the seller would kick back $75,000 from the loan proceeds to Nevins. On June 30, 2006, the mortgage loan was funded through a bank wire in the amount of $657,768. On July 6, 2006, the property seller issued a check to Jon Nevins in the amount of $75,000 from the proceeds of the sale. On July 14, 2006, following the kickback of $75,000 to Nevins, Nevins gave Chambers a check for $14,500 out of the kickback funds.
Chambers pleaded guilty to his role in the conspiracy on Jan. 4, 2013 and awaits sentencing.
In addition to the conspiracy, Nevins was found guilty of one count of wire fraud and two counts of money laundering.
Under federal statutes, Nevins is subject to a sentence of up to 45 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. Attorney John E. Cowles. It was investigated by the U.S. Secret Service, the Federal Deposit Insurance Corporation-Office of Inspector General, IRS B Office of Inspector General and the Department of Housing and Urban Development B Office of Inspector General.
Fulton Man Pleads Guilty to Bank Robbery, Admits Robbing Five BanksRead the Press Release
JEFFERSON CITY, Mo. - David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man pleaded guilty in federal court today to bank robbery, admitting that he had robbed banks in Sedalia, Chillicothe, Cuba, Moberly and Rolla, Mo.
John David Farnell, 61, of Fulton, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a June 9, 2010, federal indictment. Farnell is currently serving a federal prison sentence in a separate bank robbery case that was prosecuted in the Eastern District of Missouri.
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, 2010. 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.
Under federal statutes, Farnell is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney 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.
St. Louis Man Sentenced to 35 Years for Armed Bank Robbery in which Security Guard was KilledRead the Press Release
KANSAS CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a St. Louis, Mo., man was sentenced in federal court today for his role in the murder of 70-year-old security guard Dwight Mayhugh, Sr., during an armed bank robbery in 2006.
Thirplus Moose, 25, of St. Louis, was sentenced by U.S. District Judge Gary A. Fenner to 35 years in federal prison without parole.
On Nov. 1, 2012 Moose pleaded guilty to participating in a conspiracy to commit bank robbery, armed bank robbery with forcible restraint and discharging a firearm during a crime of violence resulting in death. Moose admitted that he participated in a conspiracy to commit armed bank robbery in connection with two robbery attempts at United Missouri Bank, 7901 Wornall Road in Kansas City, in February 2006. During the second robbery attempt at the bank on Feb. 24, 2006 security guard Dwight W. Mayhugh, Sr., was fatally shot.
Co-defendant Iralee E. French, Jr., 25, of Kansas City, was sentenced on June 26, 2012 to 87 years in federal prison without parole. On July 22, 2011, French was convicted of his role in the conspiracy to commit armed bank robbery.
French and Moose used a shotgun to rob United Missouri Bank on Feb. 9, 2006. During that robbery, they confronted a bank teller in an underground parking garage as she was about to enter the bank at approximately 6:40 a.m. French pointed a shotgun at the teller, who was forced to give the robbers $8,263 from her teller station. After returning to the parking garage, the teller was ordered at gunpoint to get into the trunk of her vehicle, which she repeatedly refused to do. When she began screaming and crying, the robbers left the bank with the teller's vehicle, which was recovered the next day after being abandoned by the robbers.
French and Moose returned to the bank on Feb. 24, 2006. Using a shotgun, the robbers confronted Mayhugh when he drove into the same underground parking garage. French shot Mayhugh in the right shoulder and neck from approximately 10 feet away through the driver's side window of his vehicle. The robbers then forced Mayhugh out of his vehicle and into the bank. They demanded access to money, but Mayhugh responded that he did not have access to bank money. The robbers then stole Mayhugh's 2002 Geo Tracker and drove it away from the parking lot. The vehicle was recovered later the same day.
Mayhugh, bleeding from severe chest and neck wounds, walked to the convenience store across the street from the bank and told the store clerk he had been shot. The clerk immediately called 911 for an ambulance. Another store clerk, seeing Mayhugh's blood-soaked shirt and wounds in the neck and throat area, got a chair for him to sit on. The clerks placed towels over the wounds until paramedics arrived at the store. Mayhugh was transported to a hospital for treatment, but died the next day.
Law enforcement officers were unable to develop substantial leads or investigative progress in the bank robberies throughout the remainder of 2006, 2007 and most of 2008. On Aug. 12-13, 2008, law enforcement officers conducted a large scale re-canvas of the area around 23rd Street and Oakley in Kansas City. Nearly 500 houses were targeted to be canvassed in this operation. As a result of the publicity related to this re-canvas, a Yellow Cab taxi driver came forward and provided information related to the investigation. The taxi driver told investigators that, on the morning of the bank robbery, he picked up two men in the area of 5609 E. 23rd (the same area where the stolen vehicles were recovered) and drove them to the area of 79th Street and Brookside (a block east of United Missouri Bank), where he dropped them off.
Law enforcement investigators connected the telephone number that was used to call the taxi company with the telephone number provided by Moose, who had been contacted during the original canvas of the 23rd Street area on the day of the fatal bank robbery attempt.
This case was prosecuted by Acting U.S. Attorney David M. Ketchmark. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal's Service, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations and the U.S. Postal Inspection Service.
KC Man Pleads Guilty to Northland Bank RobberyRead the Press Release
KANSAS CITY, Mo. - David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man pleaded guilty in federal court today to robbing the Bank of America.
Edward L. Green, 24, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to the charge contained in an Aug. 7, 2012, federal indictment.
Co-defendants Robert Lowe, 27, and Rolando Winters, 25, also of Kansas City, have also pleaded guilty to their roles in the bank robbery and await sentencing.
Green admitted today that he drove the getaway car for the July 19, 2012, robbery in which they stole $5,863 from the Bank of America at 661 N.W. 55th Terr., Kansas City. Lowe and Winters entered the bank in order to rob it while Green 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.
Under federal statutes, each of the defendants is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. 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 Bruce Clark. It was investigated by the FBI.Joplin Woman Pleads Guilty to Making False Statements to Receive Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman pleaded guilty in federal court today to making false statements in order to obtain federal disaster benefits following the May 22, 2011, tornado.
Pamala Ann Shafer, 37, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in an April 3, 2012 federal indictment.
Shafer admitted that she applied for federal disaster benefits by falsely claiming that her residence had been damaged by the tornado. Shafer also filed an application for temporary rental assistance. On the basis of Shafer’s representations, FEMA authorized a $938 payment. Shafer admitted today she did not reside at that address at the time of the tornado. Rather, the apartment had been owned by another individual, who did not know Shafer.
Shafer is the fifth defendant to plead guilty in cases related to fraudulently receiving federal disaster benefits following the tornado. In separate and unrelated cases, Wanda Gail McBride, Ronald Martell Irby and Karen Marie Parks, all of Joplin, pleaded guilty and have been sentenced. Amber Nicole Peters of Joplin pleaded guilty and awaits sentencing.
Under federal statutes, Shafer is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
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.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI, Homeland Security Investigations-Office of Inspector General, and the Joplin, Mo., Police Department.Hannibal Man Sentenced to 21 Years in Prison for Illegally Possessing a Sawed-off ShotgunRead the Press Release
JEFFERSON CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Hannibal, Mo., man was sentenced in federal court today for illegally possessing a sawed-off shotgun.
David Lee Ardrey, 45, of Hannibal, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 21 years and 10 months in federal prison without parole.
On June 6, 2012, Ardrey was convicted of being a felon in possession of a firearm and of illegally possessing a sawed-off shotgun.
Ardrey was arrested on June 8, 2011, during a traffic stop in which he was the passenger in the vehicle. Ardrey provided law enforcement officers with false identification, including a driver’s license and Social Security card in the name of another person (who was deceased). Ardrey grabbed the arresting officer’s uniform and ripped his shirt, after which he was subdued and handcuffed. Ardrey refused to get into the patrol vehicle and had to be pulled into the vehicle by an officer in the back seat. While officers searched the vehicle in which Ardrey was riding, he tried to escape from the patrol vehicle by kicking out the window. Officers pushed him back into the vehicle, but when they opened the door he attempted to push past the officers. While officers held him on the ground and placed leg restraints on him, Ardrey continued kicking at the officers. One of the officers went to the hospital for treatment of possible broken fingers after Ardrey caught and held them in the handcuff chain during the struggle.
Law enforcement officers searched the vehicle and found a loaded, sawed-off Rossi .410 shotgun that belonged to Ardrey, as well as seven shotgun shells.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ardrey has two prior felony convictions for burglary and two prior felony convictions for assault, as well as prior felony convictions for armed criminal action, stealing and receiving stolen property.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia, Mo., Police Department, the Hallsville, Mo., Police Department and the Sturgeon, Mo., Police Department.Former Bank Employee Sentenced for $540,000 Embezzlement, Tax FraudRead the Press Release
JEFFERSON CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a former employee of Jefferson Bank in Jefferson City, Mo., was sentenced in federal court today for embezzling more than $540,000 from the bank and another former employer as well as for tax fraud.
Kelley Lee Steiner, 52, of Jefferson City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to one year and one day in federal prison without parole. The court also ordered Steiner to pay $664,495 in restitution.
Steiner, who pleaded guilty on Feb. 27, 2012, was employed by Jefferson Bank as vice president and secretary to the board of directors from June 14, 1999 to Nov. 12, 2008. Steiner served as personal executive assistant to former bank president Harold W. Westhues. By pleading guilty today, Steiner admitted that she embezzled a total of $487,199 from both the bank and from Westhues’ personal checking account. Steiner also admitted that she embezzled $54,000 while employed at Modern Business Systems. By failing to report the embezzled funds as income on her federal tax returns from 2005 to 2008, Steiner caused tax harm to the United States in the amount of $143,623.
Steiner had been given authority to write checks on Westhues’ personal account and sign his name to those checks in order to pay his personal expenses. During an audit of Westhues’ personal checking account, the bank discovered that Steiner had, without authority, diverted funds totaling approximately $378,000 for her personal benefit, which included writing checks to herself and paying her personal credit card bills and her children’s college expenses.
Steiner also prepared paperwork for the bank to reimburse Westhues for work-related expenses incurred by him which were typically charged to his credit card. Investigation determined that Steiner had diverted approximately $19,070 in valid reimbursement funds from Westhues, and used them to pay on her personal credit cards. Steiner also submitted false documentation to the bank for work-related expenses purportedly incurred by Westhues, which were then reimbursed by the bank, including the re-submission of valid credit card statements which had already been previously reimbursed by the bank. It was discovered that an additional $29,947 had been diverted by Steiner to pay on her personal credit card accounts.
Steiner was responsible for paying the board of directors for participating in board meetings, audit meetings, and other special bank meetings. Board members were paid $400 in cash for each meeting they attended. During a review of board fees paid by the bank in 2008, a bank officer identified approximately $60,400 in cash embezzled by Steiner that had purportedly been paid as board fees.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, IRS-Criminal Investigation, the Federal Deposit Insurance Corporation and the Missouri Division of Finance.
Columbia Man Sentenced for Possessing Child PornRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for possessing child pornography.
Norman Leroy Troxel, 46, of Columbia, was sentenced by U.S Chief District Judge Fernando J. Gaitan to six years and six months in federal prison without parole.
On Jan. 18, 2012, Troxel pleaded guilty to possessing child pornography. Troxel admitted that he possessed child pornography from Dec. 19, 2009, to June 17, 2010.
A man who was performing repairs on Troxel’s computer discovered 50-100 videos of suspected child pornography while he was working on the laptop. When law enforcement officers examined the computer, they identified 31 of 79 videos of children as child pornography and many of the 192 photographs of children as child erotica. When officers searched Troxel’s residence, they found a Sony camcorder and an 8mm tape that had been created by recording from his television as it displayed images and videos of children being sexually molested. The videotape contained an hour and 30 minutes of images and videos of children as young as three years of age being sexually molested.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Boone County Sheriff’s Department Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Columbia Man Charged with Distributing Heroin to a Minor who may have Died from OverdoseRead the Press Release
May 17, 2014JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was charged in federal court today with distributing heroin to a 16-year-old minor who died of a suspected heroin overdose.
Jon Patrick Washington, also known as “Doom,” 27, of Columbia, was charged in a federal criminal complaint filed in the U.S. District Court in Jefferson City, Mo. A warrant has been issued for the arrest of Washington, who remains at large.
Today’s complaint alleges that Washington distributed heroin to a minor on April 2, 2014.
According to an affidavit filed in support of the criminal complaint, Columbia police officers responded to a suspected heroin overdose death at the Providence Suites, 1718 N. Providence Rd., in Columbia on April 3, 2014. The victim was a 16-year-old female.
A confidential informant later reported that the heroin had been supplied by Washington and another person. Washington was located and brought to the Columbia police department for questioning.
The Boone County Medical Examiner has not released an official cause of death.
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 Anthony P. Gonzalez. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.