Western District of Oklahoma
Press releases recorded for this federal judicial district.
Three Men Arrested and Charged with Conspiracy to Possess and Distribute over 3,300 Pounds of MarijuanaRead the Press Release
Oklahoma City, Oklahoma – Federal agents with the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms & Explosives, and U.S. Immigration and Customs Enforcement Homeland Security Investigations have arrested MANUEL BARRON-HERNANDEZ, 40, a Mexican national, JUAN CARLOS SALINAS, 19, a U.S. citizen whose address is unknown, and ROBERTO OLIVAS-CHAVEZ, 31, a Mexican national, and charged them with conspiracy to possess with intent to distribute over 3,300 pounds of marijuana, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. A fourth defendant JESUS ISAAC RODRIGUEZ-CONTRERAS, 40, a Mexican national, was also charged in a separate related criminal complaint with being an illegal alien unlawfully in possession of these firearms and ammunition.
According to court records, on June 25th, 2014, members of the DEA Oklahoma City Task Force conducted an investigation involving surveillance of a storage building located at 4140 SW 149th Street in Oklahoma City and residences located at 1050 Whispering Lane, in Newcastle, and 2648 SW 38th Street, in Oklahoma City. Agents executed a search warrant at the storage unit where the three defendants were detained during the execution of the warrant. According to the complaint affidavit, agents observed 42 large blue garbage dumpsters stacked in the building and, after a drug certified dog was alerted to the odor of illegal drugs, a second search warrant was obtained. Upon execution of the second warrant, the affidavit states that agents located and seized 3,319 packages of marijuana weighing approximately one pound each secreted in the bottom portion (false floor) of the 42 dumpsters.
As part of this investigation, court records indicate that agents also conducted a search of a residence at 3705 S. Villa Avenue, in Oklahoma City, where they located six assault style rifles, a .22 caliber rifle, and over 800 rounds of ammunition. Agents arrested Rodriguez-Contreras for being an illegal alien unlawfully in possession of these firearms. He is charged in a separate criminal complaint.
All four defendants have appeared before a United States Magistrate. Barron-Hernandez, Olivas-Chavez, and Rodriguez-Contreras remain in custody. Salinas was released on bond.
This case is the result of an investigation by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement Homeland Security Investigations, and was assisted by the District-21 Drug Task Force, McClain County Sheriff’s Office, and the Oklahoma City Fire Department which was instrumental in providing manpower and equipment necessary to the discovery and seizure of the 3319 bundles of marijuana. These cases are being prosecuted by Assistant U.S. Attorneys David P. Petermann and Ashley L. Altshuler.
The public is reminded that these charges are merely accusations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to the criminal complaints and other public filings for further information.
Oklahoma City Doctor Pays $40,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma -- STANLEY K. ROGERS, D.O., who practices in Oklahoma City, Oklahoma, has agreed to pay $40,000 to the United States to settle civil penalty claims stemming from allegations that he violated the Controlled Substances Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. ("CSA"), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, with a mission to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs. Under the CSA, medical providers registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances. Violations of the record-keeping requirements subject DEA registrants to civil monetary penalties.
The United States alleged that between January 1, 2012, and February 4, 2014, at least one employee in Dr. Rogers’ office used his DEA registration number in order to obtain over 20,000 dosage units of Schedules III and IV controlled substances which were not for legitimate medical purposes. It was alleged that Dr. Rogers failed to provide effective controls and procedures against theft and diversion, failed to maintain and review records of the dates, quantities received, dispensation, or inventories of controlled substances purchased using his DEA registration number.
In order to resolve the civil penalty claims against by the United States, Dr. Rogers agreed to pay $40,000 to the government In reaching this settlement, Dr. Rogers did not admit liability and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration’s Oklahoma City District Office Diversion Group and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Former Indian Casino Cashier Sentenced to 37 Months in Prison for Embezzlement and Failing to File A Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – Kimberly Dawn Logsdon, of Chickasha, Oklahoma, was sentenced today to 37 months in prison for embezzling from an Indian casino and failing to file a tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Silver Buffalo Casino was an Indian gaming establishment in Anadarko, Oklahoma, operated by the Apache Tribe of Oklahoma. Kimberly Logsdon was employed as a cashier clerk at the casino from July 25, 2007, until her termination on December 3, 2008. During five days of trial testimony in December 2013, a jury heard evidence that from January of 2008 through November of 2008, Ms. Logsdon double-counted certain winning cashout vouchers presented by casino customers for payment and kept a total of $174,472.56. She duplicated payments by treating certain vouchers both as scanned by the computer system and as unscanned vouchers that were not entered into the casino’s computer system. The evidence also showed that she knowingly failed to file a federal income tax return for 2008, in spite of the fact that she and her husband had at least $144,800.00 in gross gambling winnings between May and December of 2008.
Today United States District Judge Timothy D. DeGiusti sentenced Ms. Logsdon to 37 months in prison, to be followed by two years of supervised release, and restitution of $174,472.56. The sentence was based in part on the court’s finding that Ms. Logsdon testified falsely at trial about what she was doing on video surveillance footage that showed incriminating hand movements.
The jury also convicted William Michael Logsdon of failing to file a tax return. His sentencing date has not yet been determined.
This case is the result of an investigation by the Bureau of Indian Affairs and IRS Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Travis D. Smith.
Sex Offender Pleads Guilty to Producing Child Porn of ToddlerRead the Press Release
Oklahoma City, Oklahoma – Today, ANTHONY RAY SACKETT, 35, of Norman, Oklahoma, pled guilty to producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on January 31, 2014, Sackett used an approximately two-year-old girl to engage in sexually explicit conduct and took pictures of the encounter with his Samsung phone. Sackett then used the phone to transfer the images to others via the Internet. At the time of this offense, Sackett was a registered sex offender due to a 2002 Cleveland County conviction for possession of child pornography.
Due to his prior conviction, Sackett faces a heightened penalty in federal court of 25 years to 50 years in prison. A sentencing hearing will be set by the court in approximately 90 days.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Los Angeles County Sheriff’s Department in California. The case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Icon Telecom and Its Owner Plead Guilty and Agree to Forfeit More Than $27 Million in Connection with Federal Wireless Telephone Subsidy ProgramRead the Press Release
Oklahoma City, Oklahoma – WES YUI CHEW, of Edmond, Oklahoma, and his company, ICON TELECOM, INC., also of Edmond, pled guilty today to money laundering and making a false statement to the Federal Communications Commission, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Chew and Icon have also agreed that the United States will keep more than $27 million seized during the investigation.
The current Lifeline Program, which was created in 1985, furthers the FCC’s mission to provide all Americans with access to a basic level of telephone service. Since 2005, Lifeline has provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers. The Universal Service Administrative Company ("USAC") administers the Lifeline Program on behalf of the FCC and under detailed federal regulations. To pay for the program, USAC collects fees from telephone companies, which often pass the fees on to customers as “universal service charges” on monthly telephone bills.
Most participating wireless telephone companies receive a subsidy of $9.25 per month for each qualifying low-income customer. If a qualifying customer lives on "Tribal Lands," however, the company receives $34.25 per customer. Much of Oklahoma includes Tribal Lands that qualify for the higher monthly subsidy.
Before receiving reimbursement, participating telephone companies file forms with the FCC that report the number of Lifeline eligible customers they have served. Companies must also file annual reports by January 31 to certify that customers who received Lifeline service at an earlier date remain eligible for the program.
Icon Telecom, owned exclusively by Chew, participated in the wireless Lifeline Program from July 2011 until September 2013. An information filed on June 3, 2014, alleges that in September 2011, Icon reported fewer than 2,200 wireless customers who qualified for the Lifeline program. By November 2012, that number had grown to 135,364. The information explains that although it had fewer than ten full-time employees, Icon received a total of $58,283,329 through the Lifeline Program during 2011, 2012, and 2013.
Today, Chew pled guilty to Count 1, which charges him with money laundering for his transfer of $20,455,829.10 on April 9, 2013, from an Icon account to a personal account. He admitted that when he made that transfer, he knew that Icon had tens of thousands fewer customers than it had reported to the FCC for the first three months of 2013.
As the sole owner of Icon, Chew also entered a guilty to plea on behalf of the company to Count 2, which charges that Icon knowingly made a false statement to the FCC on May 13, 2013. Chew admitted that in response to a USAC audit request, Icon intentionally fabricated 58 customer recertification forms, which included fictitious signatures.
The information seeks forfeiture of $20,542,740.73, which the United States seized on October 4, 2013, from a personal account at Ally Bank that belonged to Chew. Both Chew and Icon have agreed not to contest the forfeiture of this money. They have also agreed not to contest the forfeiture of $6,485,933.82 seized on October 7, 2013, from two Icon accounts at BancFirst.
In addition to the forfeiture, Chew faces up to 10 years in prison and a fine of $250,000 or twice the amount of the criminally derived property involved in the transfer, whichever is greater. Icon faces a potential fine of $500,000.
The case against Chew and Icon are related to charges against Oscar Enrique Perez-Zumaeta, who faces a ten-count indictment filed on June 3, 2014. According to that indictment, Perez-Zumaeta used his company, PSPS Sales, to assist Chew and Icon in defrauding the FCC. Perez-Zumaeta has entered a plea of not guilty to all counts. His trial is scheduled for August 12, 2014. The public is reminded that Perez-Zumaeta is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Office of Inspector General for the Federal Communications Commission; the Federal Bureau of Investigation; and the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Scott E. Williams.
Reference is made to the information and other public filings for further information.
Yukon Physician Pleads Guilty to Failure to File Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – DWAYNE L. ROUSH, from Yukon, Oklahoma, a physician practicing in Purcell, Oklahoma, pled guilty to failing to file a federal tax return for 2011, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Roush was charged by information on May 22, 2014, with failing to file a federal tax return for 2011. As part of his guilty plea, Roush agreed to pay restitution to the Internal Revenue Service for six tax years, including 2007, 2008, 2009, 2010, 2011, and 2012. In addition, Roush agreed at the plea hearing that the total tax loss to the IRS is between $200,000 and $400,000.
At sentencing, Roush faces up to one year in prison followed by one year of supervised release. He also faces a fine of up to $250,000 and an order to pay mandatory restitution. A sentencing date will be set by the court in approximately 90 days.
This case is the result of an investigation by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Shooting at House Lands Convicted Felon Gang Member in Federal Prison for 57 MonthsRead the Press Release
Oklahoma City, Oklahoma – DAVID ASHARD SAMILTON, 20, from Oklahoma City, was sentenced today to serve 57 months in federal prison for being a convicted felon illegally in possession of a firearm, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on September 15, 2013, the Oklahoma City Police Department responded to a report of a street fight at 1708 NE 11th in Oklahoma City. Samilton and others were interviewed by the responding officers with no arrests at that time. Less than an hour later, OCPD responded to another call that shots were fired at the same residence. Officers discovered bullet holes in the siding, bullet strikes in the brick, one bullet hole in the front window of the residence, and six .45 caliber shell casings in the street. Witnesses at the scene described the shooter as wearing the same clothing matching the description of what Samilton was wearing during the prior interview. Officers then discovered Samilton hiding in a vacant house nearby with a Taurus PT145, .45 caliber pistol. The OCPD’s Metropolitan Violent Crime Gang Task Force has documented Samilton as a member of a local street gang. Samilton had prior felony convictions in Oklahoma County for possession of cocaine base, auto theft, and possession of marijuana with intent to distribute. Under federal law, Samilton was prohibited from possessing this firearm as a convicted felon.
Samilton was indicted on October 1, 2013, and pled guilty today. In addition to being ordered to serve a 57-month prison sentence, Samilton was ordered to serve three years of supervision upon his release from prison. Samilton also faces an additional charge in Oklahoma County District Court for discharging a firearm into a dwelling. (Oklahoma County District Court case CF-2013-6383).
This case is the result of an investigation by the U.S. Department of Homeland Security Investigations and the Oklahoma City Police Department. The case was prosecuted by Assistant U.S. Attorney Ashley L. Altshuler.
ICON Telecom, Its Owner, and A Former Associate Charged in $25 Million Fraud in Federal Wireless Telephone Subsidy ProgramRead the Press Release
Oklahoma City, Oklahoma – WESLEY YUI CHEW, of Edmond, Oklahoma, his company, ICON TELECOM, INC., also of Edmond, and OSCAR ENRIQUE PEREZ-ZUMAETA, of Cancun, Mexico, have been charged with crimes involving more than $25 million of fraudulent claims against the federal Lifeline telephone program, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma, and David L. Hunt, Inspector General of the Federal Communications Commission ("FCC").
Background
The current Lifeline Program, which was created in 1985, furthers the FCC’s mission to provide all Americans with access to a basic level of telephone service. Since 2005, Lifeline has provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers. The Universal Service Administrative Company ("USAC") administers the Lifeline Program on behalf of the FCC and under detailed federal regulations. To pay for the program, USAC collects fees from telephone companies, which often pass the fees on to customers as "universal service charges" on monthly telephone bills.
Most participating wireless telephone companies receive a subsidy of $9.25 per month for each qualifying low-income customer. If a qualifying customer lives on "Tribal Lands," however, the company receives $34.25 for each qualifying customer. Much of Oklahoma includes Tribal Lands that qualify for the higher monthly subsidy.
Participating telephone companies file forms with the FCC, prior to receiving reimbursement, that report the number of Lifeline eligible subscribers that have been served by the companies. Companies must also file annual reports by January 31 to certify that customers who received Lifeline service at an earlier date remain eligible for the program.
Icon Telecom, owned exclusively by Chew, participated in the wireless Lifeline Program from July 2011 until September 2013. It is alleged that in September 2011, Icon reported fewer than 2,200 wireless customers who qualified for the Lifeline program. By November 2012, that number had grown to 135,364. It is alleged that Icon always claimed subsidies at the "Tribal Lands" rate of $34.25 per customer per month. Although it had fewer than ten full-time employees, it is alleged that Icon received a total of $58,283,329 through the Lifeline Program during 2011, 2012, and 2013.
It is further alleged that to recruit new customers, Icon relied almost exclusively on PSPS Sales LLC, which Perez-Zumaeta owned and operated. Icon paid PSPS Sales from $7.00 to $15.00 for each new customer. From December 2011 through April 2013, Icon paid more than $1,040,000 to PSPS Sales.
Information Charging Chew and Icon Telecom
Chew has been charged with money laundering for his transfer of $20,455,829.10 on April 9, 2013, from an Icon account to a personal account. If convicted, Chew faces up to 10 years in prison and a fine of $250,000 or twice the amount of the criminally derived property involved in the transfer, whichever is greater.
Icon is charged with making a false statement to USAC. Specifically, it is alleged that USAC auditors asked Icon on May 6, 2013, to provide 58 specific customer recertification forms as part of a Lifeline audit. It is alleged that in the absence of legitimate forms, Icon created false recertification forms, fabricated the subscribers’ signatures on the forms, and electronically submitted the fictitious forms to USAC in response to the audit. If convicted, Icon faces up to five years of probation, a fine of up to $500,000, and mandatory restitution.
The information also seeks forfeiture of the $20,455,829.10 involved in the money-laundering transaction.
Indictment Charging Perez-Zumaeta
Perez-Zumaeta has been charged in a ten-count indictment. Count One alleges that Perez-Zumaeta conspired with Chew and Icon to defraud USAC and the FCC of more than $25 million. Counts 2 - 6 allege wire fraud. Three of these counts relate to payments from USAC to Icon of over $7 million each. Counts 7 - 10 charge money laundering based on deposits of criminal proceeds into a PSPS Sales bank account.
In general, the indictment alleges that Perez-Zumaeta directed PSPS Sales personnel to use phone books to come up with names and addresses for bogus Lifeline customers and to dispose of telephones registered to fake customers by selling them on the street for approximately $5 each. Perez-Zumaeta is also alleged to have instructed PSPS Sales personnel to fabricate signatures of fictitious customers on approximately 40,000 recertification forms and to cover up the fabrications by using different pens, different hand-writing styles, and different formats for dates.
If convicted, Perez-Zumaeta could be imprisoned for 20 years on each of the conspiracy and wire-fraud counts and 10 years on each of the money-laundering counts. He would also be subject to a fine of up to $250,000 on each count, and mandatory restitution. Furthermore, the indictment seeks forfeiture of all proceeds of the alleged fraud and all property involved in the money-laundering transactions.
Perez-Zumaeta was arrested on April 25, 2014, at the San Francisco airport and is currently in federal custody. On May 16, he was ordered detained pending further proceedings after the Court found he presented a risk of flight.
Investigative Agencies
"Although this program was designed to help low-income Americans have basic access to phone service, these individuals, and their companies, allegedly exploited the system to line their own pockets," said U.S. Attorney Coats. "All of us must be concerned when programs like this are abused and defrauded. I commend the FCC-Inspector General, FBI, and IRS Criminal Investigation for their cooperation and coordination in this investigation."
Said FCC Chairman Tom Wheeler, "The FCC’s adoption of tough, enforceable rules in 2012 to combat waste, fraud and abuse in Lifeline is paying off. Lifeline provides a link to jobs, family and emergency services for Americans who cannot afford phone service. I thank the Office of the Inspector General and our partners in the U.S. Attorney’s Office, IRS, and FBI for fighting fraud so that Lifeline can continue to help low-income Americans afford the basic phone service that most consumers take for granted."
This case is the result of an investigation by the Office of Inspector General for the Federal Communications Commission, the Federal Bureau of Investigation, and IRS Criminal Investigation. The cases are being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Scott E. Williams.
The public is reminded that these charges are merely accusations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to the information, the indictment, and other public filings for further information.
Burns Flat Woman Sentenced to 27 Years for Videotaping Sex Acts with ToddlerRead the Press Release
Oklahoma City, Oklahoma – Today, United States District Court Judge Robin J. Cauthron sentenced LAURA JEAN SHOULDERS, 47, of Burns Flat, Oklahoma, to serve 324 months in federal prison for producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Shoulders will have no possibility of parole. Upon release from prison, Shoulders will have to register as a sex offender.
According to court records and information from court proceedings, Shoulders met a Burlington, Oklahoma, man online through a Craigslist personals ad in the summer of 2012. The two began texting each other about sexually explicit themes and exchanged sexually explicit photographs. The conversations turned to the subject of child pornography, and Shoulders sent the man three videos of herself performing sex acts with a one-year-old child that she made with her iPhone. Shoulders was babysitting the child. The man, in turn, distributed the videos to others, whom he met online.
Shoulders was indicted on January 8, 2014, and pled guilty on February 26, 2013.
This case is the result of an investigation by the Oklahoma Internet Crimes Against Children (ICAC) Task Force, Washita County Sheriff’s Office, Burns Flat Police Department, Dewey County Sheriff’s Office, and the United States Secret Service. Among the investigators who participated in this investigation were the recently deceased Officer Kristian Willhight of the Burns Flat Police Department and the recently deceased Undersheriff Brian Beck of the Washita County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Former Office Manager Pleads Guilty to Forgery and Signing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – ERIN MARIE WELLS, of Yukon, Oklahoma, pled guilty today to check forgery and signing a false federal income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
From 2009 until mid-2013, Wells was employed as the office manager of Advanced Electric, located in Oklahoma City. She was responsible for paying the company’s bills, depositing checks into the company bank account, and maintaining the company’s books and records. Today she pled guilty to forging the signature of the company’s owner on a $1,500 check and using the proceeds for her personal benefit. In a plea agreement, she has agreed to pay restitution to the company in the amount of $256,857.76.
In addition to pleading guilty to forgery, Wells has pled guilty to signing a false tax return. She admitted that on January 11, 2013, she signed a personal federal tax return for the 2012 calendar year that she knew was false because it reported only $28,386 in total income, substantially less than the income she actually received.
As a result of her conviction for forgery, Wells faces up to 10 years in prison, three years of supervised release, a $250,000 fine, and mandatory restitution. With respect to the tax conviction, she faces up to three years in prison, one year of supervised release, and a $250,000 fine. Sentencing will take place in approximately 90 days. Reference is made to the information and other public filings for further information.
This case is the result of an investigation by the Internal Revenue Service Criminal Investigations, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Scott E. Williams.
Oklahoma, Colorado, and Illinois Residents Among Nine Indicted for Conspiracy to Harvest Marijuana in Colorado for Distribution to Oklahoma, Illinois and Other StatesRead the Press Release
Oklahoma City, Oklahoma – Nine people have been indicted by a federal grand jury in Oklahoma City charging them with conspiracy to possess with intent to distribute marijuana, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The nine defendants charged in this conspiracy are:
- Terry Hardin Wilkerson, 71, from Oklahoma City, Oklahoma,
- William Jesse Hoge, 53, from Oklahoma City, Oklahoma,
- Curtis Frank Wagner, 49, from Crestone, Colorado,
- David A. Geubelle, 45, from Highland Park, Illinois,
- Crystal Adams, 45, from Oklahoma City, Oklahoma,
- Marty Shellabarger, 67, from Moffatt, Colorado,
- Skylar J. Freeman, 25, from Crestone, Colorado,
- Shawn N. Maminakis, 34, from Crestone, Colorado, and
- David Lincoln Steele, 48, from Crestone, Colorado.
According to the indictment, from November of 2013 through April 24, 2014, the defendants were members of a drug trafficking organization that conspired to possess and provide more than 100 kilograms of marijuana from indoor and eventually outdoor marijuana grow facilities in Colorado to be transported and redistributed in Oklahoma, Illinois, and other states. It is further alleged that the defendants frequently communicated with cell phones and used coded language such as “farm” (the grow facilities in Colorado) and “Christmas Trees,” “Trees” or “Green” (marijuana) in an attempt to conceal the illegal nature of their conversations. The indictment alleges that the defendants used, distributed, and stored marijuana at various locations in the Oklahoma City and Crestone, Colorado, areas. The indictment seeks forfeiture of over $66,000 in cash, and properties located at 4500 North West 31st Place, 2101 North West 59th Street, and 3346 Willow Brook Road, all in Oklahoma City, and a property located at 9817 Stonebridge Drive, in Yukon, Oklahoma. For more information, reference is made the attached indictment.
If convicted, the defendants face no less than five and up to 40 years in federal prison and a fine of $5,000,000. The defendants are all presumed innocent unless and until proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation "Operation Stale Smoke" led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. Valuable assistance was also provided by the United States Attorneys’ Offices for the District of Colorado and the Northern District of Illinois. This case is being prosecuted in the Western District of Oklahoma by Assistant U.S. Attorneys David P. Petermann and David L. Walling.
Colorado Residents Among Nine Charged with Conspiracy to Harvest Marijuana in Colorado for Distribution to Oklahoma and Other StatesRead the Press Release
Oklahoma City, Oklahoma – Nine people have been charged in two related complaints alleging conspiracy to harvest marijuana in Colorado for distribution to Oklahoma and other states, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Defendants in the first complaint are TERRY HARDIN WILKERSON, 71, from Oklahoma City, Oklahoma, WILLIAM JESSE HOGE, 53, from Oklahoma City, Oklahoma, CURTIS FRANK WAGNER, 49, from Crestone, Colorado, DAVID GEUBELLE, 45, from Highland Park, Illinois, CRYSTAL ADAMS, 45, from Oklahoma City, Oklahoma, MARTY SHELLABARGER, 67, from Moffatt, Colorado, and SKYLAR J. FREEMAN, 25, from Crestone, Colorado. Defendants in the second complaint are SHAWN N. MAMINAKIS, 34, from Crestone, Colorado, and DAVID LINCOLN STEELE, 48, from Crestone, Colorado.
Both complaints allege that the defendants conspired to harvest more than 100 kilograms of marijuana in Colorado and distribute it to Oklahoma and other states. For more information, reference is made the attached affidavits made part of the criminal complaints. If convicted, the defendants face no less than five and up to 40 years in federal prison and a fine of $5,000,000. The defendants are all presumed innocent unless and until proven guilty.
Wilkerson was arrested Tuesday and appeared in federal Court for his initial appearance in Oklahoma City yesterday. Hoge was arrested yesterday and appeared in federal court for his initial appearance in Oklahoma City today. Adams was arrested today and will appear for her initial appearance in federal court in Oklahoma City tomorrow. Wagner, Shellabarger, Freeman, Maminakis and Steele were arrested Tuesday and appeared in federal Court for their initial appearance in Denver yesterday. Geubelle was arrested yesterday and appeared in federal court for his initial appearance in Chicago today.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation “Operation Stale Smoke” led by the Oklahoma City District office and the Colorado Springs office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Colorado Springs Resident Office, the Chicago Field Division, and the Oklahoma City District Office of the Drug Enforcement Administration. Valuable assistance was also provided by the United States Attorneys’ Offices for the District of Colorado and the Northern District of Illinois. This case is being prosecuted in the Western District of Oklahoma by Assistant U.S. Attorneys David P. Petermann and David L. Walling.
Owner, Manager, and Hospice Company Indicted for Committing Medicare FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury in Oklahoma City has returned an indictment charging PAULA KLUDING, 38, from Chandler, Oklahoma, PATRICIA CARTER, 42, from Tecumseh, Oklahoma, and PRAIRIE VIEW HOSPICE, INC. ("Prairie View Hospice"), an Oklahoma corporation located in Chandler, Oklahoma, with 39 separate counts relating to Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the indictment, Prairie View Hospice was in business to provide hospice care to Medicare beneficiaries. Hospice care consists of providing health care, medication, medical equipment, and other goods and services to terminally ill patients. Kluding owned Prairie View Hospice and Carter was the general manager. The indictment alleges that from July of 2010 through July of 2013, the defendants conspired to conceal the true medical condition of Prairie View Hospice’s patients and the true quality and quantity of health care services they were receiving in order to "pass" a Medicare audit and to fraudulently obtain money from Medicare. Specifically, it is alleged, among other things, that certain medical documents were falsified to make it appear that nurses had visited patients or conducted necessary assessments when such visits and assessments had not, in fact, been made. Also, nursing notes were falsified to make it appear that patients were in worse health than they actually were in order to justify to Medicare the patient’s continued hospice care. It is alleged that Prairie View Hospice, acting through Kluding and Carter, sent the falsified documents to a Medicare subcontractor in response to requests to audit patient files and claims for Medicare reimbursement. The indictment charges the defendants with conspiracy, obstruction of a federal audit, and making false statements in health care matter.
If convicted, the individual defendants face up to 5 years imprisonment and a fine of $250,000 on each count. The indictment also seeks forfeiture of all property and proceeds obtained by the defendants from the alleged criminal acts. Reference is made to the indictment for further information. The defendants are all presumed innocent unless and until proven guilty.
This case is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Army Reserve Soldier Agrees to pay $20,000 to Settle Civil Claims of Obtaining Fraudulent Housing BenefitsRead the Press Release
Oklahoma City, Oklahoma -- Monique J. Ritz, a reserve soldier with the United States Army from Edmond, Oklahoma, has agreed to pay $20,000 to the United States to settle civil claims related to obtaining fraudulent housing benefits, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The United States filed a civil action against Ritz and her former spouse Edward Donahue, a former reserve soldier with the United States Army, alleging that from June of 2007 through January of 2010, Donahue submitted travel vouchers for lodging reimbursement which included lease agreements created and signed by Ritz. It was alleged that the lease agreements falsely represented that Donahue was the only occupant of the residence and that Donahue was paying rent to Ritz when in fact they were living together in the residence as husband and wife. As a result, Donahue and Ritz received lodging reimbursement benefits from the United States Army to which they were not entitled. Ritz did not admit liability but agreed to pay $20,000 to the government in order to resolve the claims against her. In addition, Ritz executed a Consent Judgment of her indebtedness in favor of the United States in the amount of $20,000. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Army Criminal Investigation Command and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Moore Resident Sentenced for Committing Disaster Benefits Fraud Following May 2013 TornadoRead the Press Release
Oklahoma City, Oklahoma –BLAKE LYNN SELF, 19, of Moore, Oklahoma, was sentenced today to serve three months in prison, 60 days in a halfway house, and 90 days home confinement for committing disaster benefits fraud in connection with the May 2013 tornados in Moore, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Self was ordered to pay $12,885.45 in restitution to FEMA and serve five years of supervised release at the conclusion of his confinement term.
Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the May 20, 2013, tornado affecting Cleveland County was declared a major disaster and the payment of disaster benefits was authorized. Self was indicted in November of 2013 and charged with submitting a false claim for monetary benefits to be paid by Federal Emergency Management Agency (FEMA) on June 14, 2013. Specifically, it was alleged that Self claimed to a FEMA inspector that his primary residence at the time of the May 20, 2013, tornado, was 916 S.W. 14th Street, in Moore, when in fact it was not his residence at that time.
Self pled guilty to committing benefits fraud on January 8, 2014.
This case was the result of an investigation by the U.S. Department of Homeland Security Office of Inspector General and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
The public may report suspected disaster benefits fraud by contacting the Department of Homeland Security Office of Inspector General (www.oig.dhs.gov or by calling toll free 1-800-323-8603) or by calling the Disaster Fraud Hotline at 1-866-720-5721.
City Woman Pleads Guilty to Defrauding Her Employer and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – CASEY LYNN PEYTON, 41, from Oklahoma City, pled guilty today before United States District Court Judge David Russell to defrauding her employer in a wire fraud scheme and to committing tax fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Peyton was the bookkeeper for Metropolitan Air Conditioning Service Company ("Metropolitan") in Oklahoma City. As part of her job, she prepared job cost reports, handled accounts payable and receivable, paid payroll and bills, and managed insurance and benefits for the company. According to the Information filed in the case, from January 22, 2009, through November 30, 2012, Peyton defrauded her employer by committing wire fraud. Specifically, on November 30, 2009, she wire transferred $1,835 from Metropolitan’s bank account to American Express to cover her personal credit card expenses. In addition, Peyton was charged with filing a fraudulent tax return for 2011 by intentionally failing to report her entire income for the tax year.
Peyton pled guilty to the Information today and admitting that she defrauded her employer and that she filed a fraudulent tax return. In the plea agreement, Peyton admitted that the loss to Metropolitan from 2009 through 2012 was between $200,000 and $400,000 and that the tax loss to the Internal Revenue Service for 2009 through 2011 was between $30,000 and $70,000.
At sentencing, Peyton faces up to 20 years in prison and a $250,000 fine on the wire fraud scheme and up to three years and a $100,000 fine on the tax charge. As part of a plea agreement, Peyton agreed to pay full restitution to Metropolitan and to the IRS. A sentencing hearing will be set by the court in approximately 90 days.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Kerry A. Kelly.
Choctaw Woman Pleads Guilty to Embezzling Money from Credit Union AccountsRead the Press Release
Oklahoma City, Oklahoma – STEPHANY DENLER MORENO, 31, from Choctaw, pled guilty today before United States District Court Judge Robin Cauthron to embezzling money from credit union member accounts and to making false statements in the records of a credit union, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Moreno was a teller for Communication Federal Credit Union (“CFCU”) in Oklahoma City. According to the Indictment filed in the case, on nine different dates from July 2011 through December 2012, Moreno made unauthorized cash withdrawals on various accounts of credit union member B.L. and used the money for her own purposes. In addition, Moreno forged signatures on three cash withdrawal receipts in order to make unauthorized withdrawals from B.L.'s accounts. The unauthorized cash withdrawals from B.L.'s accounts totaled $39,100.
Moreno pled guilty to the twelve-count Indictment today and admitted that she embezzled the funds from B.L.'s accounts and that she forged signatures on the cash withdrawal receipts.
At sentencing, Moreno faces up to 30 years in prison and a $1,000,000 fine on the embezzlement and the false statement charges, and she will be required to pay restitution. A sentencing hearing will be set by the court in approximately 90 days.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Amanda Maxfield Green.
Geronimo Man to Serve 210 Months in Prison for Unlawful Possession of A FirearmRead the Press Release
Oklahoma City, Oklahoma – FLORENTINO VILLANUEVA, JR., 38, of Geronimo, Oklahoma, has been sentenced by United States District Judge Joe Heaton to serve 210 months in federal prison for being a convicted felon in possession of a firearm and ammunition, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, a wide-ranging investigation revealed that Villanueva was linked to methamphetamine trafficking in the Comanche County area. During the execution of a search warrant at Villanueva’s house at 926 SW 35th Street in Lawton, Oklahoma, a Springfield Model XD .40 caliber pistol was discovered along with ammunition. Further investigation revealed that Villanueva had previous felony convictions in Comanche County for distribution of marijuana, first-degree robbery, and assault and battery on a police officer. Under federal firearms laws, Villanueva was prohibited from being in possession of any firearm or ammunition because of his prior felony convictions.
On September 3, 2013, Villanueva was indicted by a federal grand jury for being in unlawful possession of a firearm following his felony conviction. He pled guilty on November 22, 2013. At his sentencing hearing earlier this week, Judge Heaton found that due to Villanueva’s prior criminal history he was an Armed Career Criminal which resulted in an enhanced penalty increasing the minimum punishment to 15 years in prison.
In addition to sentencing Villanueva to serve 210 months, he was ordered to serve five additional years of supervised release after he is released from prison.
This sentence is the result of an investigation conducted by the Bureau of Alcohol Tobacco Firearms and Explosives, the Lawton Police Department, and the Oklahoma Bureau of Narcotics and Dangerous Drugs. The case was prosecuted by Special Assistant U.S. Attorney Mark R. Stoneman.
Reference is made to public filings for further information.
Former Owner of T&T Realty Sentenced to Twenty-Four Months in Prison for Mortgage FraudRead the Press Release
Oklahoma City, Oklahoma – TRINA TAHIR, 58, of Oklahoma City, has been sentenced to twenty-four months in federal prison and ordered to pay $382,290.82 in restitution for her role in obtaining mortgage loans fraudulently, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
A grand jury indicted Tahir along with two co-defendants, Derrick Reuben Smith and Michael Gipson, in July of 2010. According to the indictment, Smith recruited two individuals to buy two new homes in Edmond in mid-2006 and early 2007 for $425,000 and $435,000 respectively. The builder of both homes agreed that Tahir’s real estate brokerage, T&T Realty, would receive large commissions and bonuses totaling $51,950 and $77,950 respectively. The indictment alleged that after the closings, Tahir caused T&T Realty to write checks to Gipson, an agent at T&T Realty, for $27,059.86 and $58,000 respectively. Gipson then bought cashier’s checks in those same amounts payable to “MP Services,” a business that Smith operated. Smith paid $20,000 to the person who served as the buyer of the first house and used the rest of the money for his own purposes. In short, the defendants were charged with inducing lenders to fund mortgages based on inflated real estate prices and misrepresenting the distribution of excessive loan proceeds to Smith as commissions and bonuses paid to Tahir.
The indictment also charged Gipson and Tahir with fraudulently misrepresenting the source of funds used as a down payment on a house that Gipson bought in Oklahoma City and charged Tahir with fraudulently disguising the payment of $9,295.52 to a buyer of a house in Midwest City as a real estate bonus.
In addition to a conspiracy count and four wire-fraud counts, the indictment included nine counts of money laundering. In each of these, one of the defendants was charged with engaging in a financial transaction designed to conceal and disguise the nature, source, and ownership of the proceeds of the mortgages.
On April 6, 2011, Tahir pled guilty to laundering the proceeds of a fraudulent mortgage on the house purchased by Gipson. A jury convicted Smith of conspiracy on April 14, 2011; on August 30, 2011, he was sentenced to 40 months in prison and ordered to pay $369,355.54. Gipson pled guilty on March 30, 2011, to conspiracy and money laundering. He was sentenced to 4 months and ordered to pay $335,070.55 in restitution.
On March 26, 2014, U.S. District Judge Timothy D. DeGiusti heard evidence concerning Tahir’s fraudulent conduct and concluded that she was culpable in connection with six residential properties. He also found that she had obstructed justice by attempting to manipulate the judicial process through meritless motions in which she contended that she was incompetent and that she should be allowed to withdraw her guilty plea because of alleged coercion by her former counsel. Based in part on these findings, he ordered her to serve 24 months in the custody of the Federal Bureau of Prisons and to pay $382,290.82 in restitution to financial institutions. After her incarceration, she will be on supervised release for three years.
This sentence is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Chris M. Stephens.
Reference is made to public filings for further information.
Apache Resident Pleads Guilty to Tribal EmbezzlementRead the Press Release
Second to Plead Guilty for Embezzlement Scheme from Apache Tribe Casinos
Oklahoma City, Oklahoma – ANTONIO CARATTINI, 61, of Apache, Oklahoma, pled guilty yesterday to embezzlement from the Apache Tribe of Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In a related case, JOHN PANGBURN, 60, of Tulsa, Oklahoma, pled guilty in September of 2013 to conspiracy to embezzle funds from the Apache Tribe of Oklahoma.
From July 2010 through July 2011, Pangburn was the general manager of the Apache Tribe’s Silver Buffalo Casino in Anadarko. According to the Indictment filed against Carattini, in the fall of 2010, Pangburn "hired" Carattini – without the approval of the tribe – as a tribal consultant to help with building a new casino in Apache. The Indictment alleged that Pangburn signed and directed checks for more than $90,000 in tribal casino funds to Carattini, though Carattini did little if any work for the tribe. The Indictment also alleged that on several occasions, Carattini cashed those tribal checks to him and returned approximately $1,000 in cash to Pangburn.
At yesterday’s plea hearing, Carattini pled guilty to one count of tribal embezzlement. Carattini admitted that in July 2011, he received and benefitted from a $3,500 tribal check to him signed by Pangburn, though Carattini had not done any tribal work in exchange for the check. In September 2013, Pangburn pled guilty to a conspiracy with Carattini to embezzle funds from the Apache Tribe.
At sentencing, Carattini and Pangburn each face up to five years in prison, three years of supervised release, and a fine of $250,000. In separate plea agreements, each defendant agreed to pay restitution to the Apache Tribe for the amount of embezzled funds, which will be determined by the Court at sentencing. A sentencing hearing for Carattini will be set by the Court in approximately 90 days. Sentencing for Pangburn is scheduled for April 28, 2014.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, and the cases are being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Bethany Man to Serve 17 Years in Prison for Operating A Ponzi SchemeRead the Press Release
Oklahoma City, Oklahoma – Earlier this week, BRIAN WILLIAM McKYE, 50, from Bethany, Oklahoma, was sentenced to serve 204 months in federal prison after being found guilty of seven counts of securities fraud and one count of conspiracy to commit money laundering in operating a Ponzi scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, McKye was ordered to serve three years of supervised release after being released from prison and pay $4,566,727.24 in restitution to victims.
Evidence from trial showed that from 2006 through 2009, McKye, did business as Global West Funding Ltd., Global West Financial LLC, Global West Financial LLC, Sure Lock Financial LLC, Sure Lock Loans LLC, and The Wave-Goldmade Ltd. McKye used these businesses to market investment contracts whereby investors were guaranteed a monthly rate of return from 6.5% to 20% for 6 to 60 months. Investors were told they had “100% total control” of their money and that the investments were secured by risk free real estate notes. However, McKye was not a registered investment advisor or broker-dealer in the State of Oklahoma and he used the money he received from investors to pay his own personal and business expenses and some limited returns to investors to keep the scheme on-going. Through this Ponzi scheme, McKye defrauded 83 victim-investors out of over $4.5 million. McKye’s companies were shut down by the Oklahoma Department of Securities in the spring of 2009.
McKye’s original conviction on November 17, 2011, was overturned on appeal. Following a four-day retrial last fall, a jury convicted McKye again in November of 2013 after deliberating for less than 90 minutes. McKye represented himself at trial.
This case was investigated by the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Susan Dickerson Cox.
Former Kickapoo Tribe Employee Pleads Guilty to EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – KYLE JAY GIPP, 34, of Shawnee, Oklahoma, pled guilty today to embezzlement from the Kickapoo Tribe of Oklahoma while he worked as a tribal employee, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Gipp worked for the Kickapoo Tribe from July of 2008 through January of 2013. In 2009, Gipp started managing the tribe’s property and supply unit. As part of those duties, Gipp maintained and managed Kickapoo Tribe credit cards that tribal employees used to buy fuel for tribal vehicles. According to the Information filed in the case, the tribe had specific operating procedures in place for employees to use its credit cards to purchase gas for tribal vehicles. The Information alleged that a particular credit card was used several times during 2012 without proper documentation or receipts.
At today’s plea hearing, Gipp pled guilty to one count of tribal embezzlement. Specifically, Gipp admitted that from January 2011 through the end of 2012, he used a Kickapoo Tribe credit card to buy more than $22,000 of gas for his personal vehicles. Gipp’s punishment for the offense could be as much as five years in prison, three years of supervised release, and a fine of $250,000. In a plea agreement, Gipp agreed to pay restitution to the Kickapoo Tribe in the amount of $22,447.44. Sentencing is scheduled for June 18, 2014.
This charge is the result of an investigation conducted by the Federal Bureau of Investigation, and the case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Former Woodward Police Officer Sentenced for Conspiracy to Commit Mail Fraud in Insurance ScamRead the Press Release
Oklahoma City, Oklahoma – CLINTON IVAN RUTLEDGE, 42, of Woodward, Oklahoma, was sentenced last week to serve ten days of weekend imprisonment and three years of supervised probation after pleading guilty to conspiracy to commit mail fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Rutledge was ordered to pay $21,163.63 in restitution to Farmers Insurance Group and serve 104 hours of community service.
On October 10, 2013, a federal grand jury indicted Rutledge and Christopher Dean Noreuil, 40, also from Woodward, charging them with conspiracy to commit mail fraud. Specifically, it was alleged that in January of 2013, Rutledge asked Noreuil to take and hide Rutledge’s 2004 Ford F-250 pickup truck and 1999 TexMex flatbed trailer to make it appear that the truck and trailer had been stolen. Rutledge then reported the truck and trailer as stolen to the police and filed a false and fraudulent insurance claim with his insurer, Farmers Insurance Group. As a result, Farmers Insurance paid out over $21,000 on the false claim. Rutledge is a former Woodward Police Department officer and a former reserve deputy for the Woodward County Sheriff’s Office.
On October 20, 2013, Rutledge pled guilty to knowingly conspiring with others to commit mail fraud. United States District Judge Joe Heaton sentenced Rutledge to serve ten days of weekend imprisonment, three years of probation supervised by the United States Probation Office, serve 104 hours of community service, and pay $21,163.63 in restitution to Farmers Insurance Group.
Noreuil pled guilty on November 19, 2013, and is awaiting sentencing.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former Tinker Official Sentenced to 30 Months in Prison for Accepting BribesRead the Press Release
Oklahoma City, Oklahoma – JAMES LEE LOMAN, 71, of McLoud, Oklahoma, a former Item Manager at Tinker Air Force Base, was sentenced today to 30 months in prison for conspiring to commit wire fraud, accepting bribes, and participating in government contracting under an illegal conflict of interest, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
In July of 2013, a federal jury heard evidence that from approximately 2002 to 2006, Loman accepted large cash payments from an individual associated with Daytona Aerospace, Inc., of Deerfield Beach, Florida, in exchange for favorable treatment in the Air Force’s purchasing of aircraft replacement parts. The evidence included numerous faxes that Loman sent from his home in McLoud to the individual in Florida. Some of these faxes calculated his bribe payments based on a percentage of aircraft sales to the Air Force, beginning at 5% and ending at 10%. Other faxes kept track of the amount of bribes due and the amount already paid to him. Still other faxes were “collection letters” that used coded language. Loman drove to Florida on multiple occasions to pick up the cash in increments of approximately $50,000. The faxes showed total cash bribes in the amount of $838,200. The jury unanimously found Loman guilty on all three charges.
Today, Chief Judge Vicki Miles-LaGrange sentenced Loman to 30 months in the custody of the Federal Bureau of Prisons. The judge explained that the sentence was lower than she would normally have imposed because of Loman’s age and severe health issues. The court ordered Loman to pay $843,200.00 in restitution to the Department of Defense and has also entered a forfeiture money judgment in the amount of $838,200.00.
This sentence is the result of an investigation by the Defense Criminal Investigative Service and the United States Air Force Office of Special Investigations, with assistance from the Federal Bureau of Investigation and the Office of Inspector General for the U.S. Department of Transportation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Chris M. Stephens.
Former OKC Schools Counselor and Former Tutoring Company OwnerPlead Guilty to OKC Schools Tutoring Program FraudRead the Press Release
Oklahoma City, Oklahoma – BOBBIE J. DAILEY, 62, from Midwest City, Oklahoma, pled guilty today to making false statements to a government agency by submitting false attendance records for tutoring sessions of students attending Oklahoma City Public Schools, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Co-defendant REBECCA E. COTTON, 42, of Midwest City, pled guilty on December 19, 2013, to one count of conspiring to make false statements to the government in connection with the same local tutoring program.
As part of the No Child Left Behind Act of 2001, the U.S. Department of Education provided funding for extracurricular tutoring to eligible students at eligible schools. Eligible schools were those designated by the state to be in need of improvement, and student eligibility was determined by family income. The Oklahoma City Public Schools District ("OKCPS") offered this tutoring program to eligible students at U.S. Grant High School and Roosevelt Middle School. OKCPS required tutoring providers to record student attendance at tutoring sessions on paper rosters and on a computer database which, in turn, was used to generate invoices that the tutoring providers submitted to OKCPS for payment with federal funds.
According to the Indictment filed in the case, during the 2009-2010 school year, Cotton co-owned and operated A Plus Academics, LLC ("A Plus"), a business providing academic tutoring to school children. During this same year, Cotton owned and operated Foundations Tutoring, LLC ("Foundation"”), a business that also provided academic tutoring to school children. A Plus and Foundations shared office space at 608 Askew Drive, in Midwest City. For the 2009-2010 school year, both A Plus and Foundations were state-approved tutoring providers having contracts with OKCPS to provide tutoring services. A Plus primarily tutored students at U.S. Grant High School. Foundations primarily tutored students at Roosevelt Middle School. Both companies hired teachers at the respective schools as tutors. During the 2009-2010 school year, co-defendant Bobbie Dailey was employed at U.S. Grant High School as a counselor and also as an A Plus tutor and "liaison" between A Plus and U.S. Grant High School.
At the December plea hearing, Cotton admitted that in 2009 she agreed with Bobbie Dailey that A Plus would submit student attendance rosters for students who were not, in fact, attending tutoring. Cotton admitted that OKCPS was billed for these students and that A Plus was paid by OKCPS with federal funds. Dailey pled guilty today to one count of making false statements to a governmental agency. She admitted that she submitted false attendance rosters to A Plus that were ultimately used to bill OKCPS for tutoring services never provided. The potential punishment each woman faces is up to five years in prison, followed by three years of supervised release, and a fine of $250,000. In separate plea agreements, both Dailey and Cotton agree to pay restitution to the U.S. Department of Education. Sentencing will take place in approximately 90 days.
At the December plea hearing, Cotton admitted that in 2009 she agreed with Bobbie Dailey that A Plus would submit student attendance rosters for students who were not, in fact, attending tutoring. Cotton admitted that OKCPS was billed for these students and that A Plus was paid by OKCPS with federal funds. Dailey pled guilty today to one count of making false statements to a governmental agency. She admitted that she submitted false attendance rosters to A Plus that were ultimately used to bill OKCPS for tutoring services never provided. The potential punishment each woman faces is up to five years in prison, followed by three years of supervised release, and a fine of $250,000. In separate plea agreements, both Dailey and Cotton agree to pay restitution to the U.S. Department of Education. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Internal Revenue Service Criminal Investigation, the U.S. Department of Education, and the Economic Crimes Task Force, and is being prosecuted by Assistant U.S. Attorneys Amanda Maxfield Green and Chris M. Stephens.
Former Moore Resident Who Sought Benefits Following May Tornado Pleads Guilty to Disaster Benefits FraudRead the Press Release
Oklahoma City, Oklahoma – IRA ROBERT SCHILLING, 42, a former resident of Moore, Oklahoma, pled guilty today to committing disaster-benefits fraud in connection with a claim for benefits through the Air Force’s Safe Haven program following the May 2013 tornados in Moore, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the May 20, 2013, tornado affecting Cleveland County was declared a major disaster and the payment of disaster benefits to Tinker Air Force base civilian employees forced to evacuate their homes was authorized through the Safe Haven program. On June 26, 2013, Schilling signed an Air Force memorandum requesting evacuation allowances and benefits. In that memorandum he certified that he and his dependents evacuated their home after the storm and were residing at a Safe Haven location in Norman, Oklahoma. In court today, he admitted that the statement was false and that his false statement caused the Air Force to pay him money.
Schilling faces up to 30 years in prison, a $250,000 fine, and payment of restitution. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the U.S. Air Force Office of Special Investigations and the U.S. Department of Homeland Security Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Brandon Hale and Special Assistant U.S. Attorney Dakota Davis.
Drug Trafficker to Serve 13 Years in PrisonRead the Press Release
Oklahoma City, Oklahoma – Today, OMERO CORDOVA, 32, of Oklahoma City, was sentenced by United States District Judge Joe Heaton to serve 156 months in federal prison for money laundering, drug trafficking and gun charges, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Following an extensive investigation, a search warrant was executed at 2412 SW 78th Street, a residence owned by Cordova, and police located multiple handguns, large amounts of cash, and marijuana. Cordova was indicted and charged with six counts: (1) distribution of less than 50 kilograms of marijuana, (2) possession of marijuana with intent to distribute, (3) possession of firearms in furtherance of a drug trafficking crime, (4) maintaining a drug-involved premises, (5) falsifying a material fact, and (6) money laundering. A jury trial was held in September of 2013 and, after three days of evidence, the jury deliberated less than three hours before finding Cordova guilty of all counts.
Today, Judge Heaton sentenced Cordova to serve 156 months in prison, followed by three years of supervised release. He was immediately remanded into custody to begin serving his sentence.
This case is the result of a joint investigation including IRS Criminal Investigation, the Oklahoma City Police Department, Oklahoma County District Attorney’s Office, and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Edward J. Kumiega.
Teddy Mitchell Sentenced to Serve 27 Months for Running an Illegal Offshore Internet Sports Gambling OperationRead the Press Release
Oklahoma City, Oklahoma – Today, TEDDY DRYDEN MITCHELL, 59, of Oklahoma City, was sentenced by United States District Judge David L. Russell to serve 27 months in federal prison for running an illegal gambling operation, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On September 24, 2012, an 81-count federal indictment was unsealed charging Mitchell and other individual defendants with crimes involving an illegal gambling operation and the money laundering of proceeds derived from that operation. Specifically, the Indictment alleged that the defendants (1) operated "High Stakes" poker games from a residence located at 640 N.W. 150th, in Oklahoma City; (2) took bets and wagers on sporting events on behalf of betting clients; (3) used an illegal Internet gambling website in interstate and foreign commerce for the benefit of betting clients; (4) laundered the proceeds of illegal gambling activities; and (5) committed various crimes related to the operation of an illegal gambling business, including but not limited to, interstate travel in aid of racketeering and use of a wire communication facility to transmit betting information.
The Indictment alleged that Teddy Mitchell organized poker games at the residence and also operated as a traditional bookmaker by taking sports bets for clients both in person and over the phone. Later, it was alleged, betting clients were provided a password to access a Costa Rican sports betting Internet website. It was alleged that to further their gambling operation the defendants conspired to launder over $8.1 million in money derived from the gambling operation.
Teddy Mitchell Plea and Sentence
On July 8, 2013, Mitchell pled guilty to running an illegal offshore internet sports betting business and conspiracy to commit money laundering. As part of his plea, Mitchell admitted that he conducted, financed, managed, supervised, directed or owned all or part of the gambling business that violated Oklahoma law and that the business was in substantial continuous operation for more than 30 days or had gross revenue of $2,000 or more on any single day. In addition, he admitted that he conspired to launder funds to promote the illegal internet gambling business.
At the sentencing hearing today, Judge Russell ordered Mitchell to serve 27 months in federal prison, followed by two years of supervised release
Other Defendants
Eight other men were convicted and sentenced in this case, as follows:
RICHARD ALLEN HANCOCK, 68, of Yorba Linda, California, pled guilty on March 15, 2013, and was sentenced on August 21, 2013, to serve 16 months in prison, followed by three years of supervised release.
GARY JOHN GIBB, 69, of Reno, Nevada, pled guilty on April 5, 2013, and was sentenced on September 11, 2013, to serve 16 months in prison, followed by three years of supervised release.
DAVID BRUCE LOVELAND, 66, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve six months home confinement, three years’ probation, and pay a $2,000 fine.
BILLY NICK MITCHELL, 24, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve two years’ probation, pay a $1,000 fine, and pay restitution of $820.
MICHAEL LEE McCULLAH, 35, of Ardmore, Oklahoma, pled guilty on July 16, 2013, and was sentenced on September 10, 2013, to serve one year probation, pay a $1,000 fine, and pay restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
Forfeiture of Illegal Proceeds
As part of this case, the government also seeks a forfeiture money judgment of over $8.1 million and the forfeiture of multiple tracts of real property, vehicles, and cash held in various accounts.
This case is the result of a joint investigation including the Federal Bureau of Investigation and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and Edward J. Kumiega.
Ninnekah Woman to Serve 24 Months in Prison and Pay over $227,000 in Restitution for Embezzlement from EmployerRead the Press Release
Oklahoma City, Oklahoma – Pamela D. Mills, 53, of Ninnekah, Oklahoma, was sentenced today by Chief United States District Court Judge Vicki Miles-LaGrange to serve 24 months in federal prison for embezzlement from her employer, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Mills was ordered to pay $227,015.07 in restitution to her former employer.
According to court records, Mills was employed by Gerald Welding Fabrication and Construction Company for approximately six years and was responsible for handling the accounts payable and receivable. Although she was not authorize to sign the company checks, Mills prepared checks for payment of the company bills, including the payment of credit card bills. From December of 2008 through August of 2012, Mills prepared checks for her manager to sign which included checks to Capitol One for the payment of her personal credit card statements.
On July 29, 2013, Mills pled guilty to a one-count Information charging her with operating a mail fraud scheme. Mills was ordered to report to federal prison to begin serving her sentence on February 18, 2014.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Kerry A. Kelly.
Kansas Company Pays $372,750 for Destruction of Protected Bird Eggs and Nests During Bridge Repair Project in Harper CountyRead the Press Release
Employee Pleads Guilty to Misdemeanor
Oklahoma City, Oklahoma – Wildcat Concrete Services, Inc. ("Wildcat"), a Kansas corporation, has paid $372,750 to the North American Wetlands Conservation Fund as part of a non-prosecution agreement with the United States arising from the destruction of cliff swallow nests during a bridge repair project, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Richard Lee Pool, 54, of Osage City, Kansas, an employee of Wildcat, pled guilty yesterday to one misdemeanor count of violating the Migratory Bird Treaty Act.
"Protecting and preserving our country’s natural resources, including wildlife, is an important responsibility that we take very seriously," said U.S. Attorney Coats. "We are committed to working with our investigative partners to reach common-sense resolutions when there are violations of our nation's environmental laws."
"One of our highest priorities is to protect the nation's fish, wildlife, and plants from unlawful exploitation and industrial hazards," said Special Agent in Charge of the Southwest Region Nicholas E. Chavez. "The successful outcome of this investigation is also the result of coordinating with the U. S. Attorney's Office to ensure the protection of a federally protected species."
The Migratory Bird Treaty Act, enacted in 1918, implements this country’s commitments under avian protection treaties with Great Britain (for Canada), Mexico, Japan and Russia. The Act, established for the conservation of migratory birds, creates a misdemeanor criminal sanction for the unpermitted taking of protected species by any means and in any manner regardless of fault. The Cliff swallows (Petrochelidon pyrrhonota) are one of 1,026 species of birds protected by the federal Migratory Bird Treaty Act.
According to Court records and the non-prosecution agreement, on May 25, 2012, Wildcat was under contract with the Oklahoma Department of Transportation to perform joint expansion repair work on the Otter Creek Bridge on highway US-270 in Harper County, Oklahoma. At that time, cliff swallows were actively nesting under that bridge. Wildcat and the United States stipulated that 818 eggs were destroyed and approximately 1,491 nests had been removed from the bridge. As part of the non-prosecution agreement, Wildcat paid $372,750 to the North American Wetlands Conservation Fund. Mr. Pool pled guilty to one count of scraping down a nest containing an egg of a migratory cliff swallow. Mr. Pool was sentenced to serve three months of probation and 10 hours of community service.
This case is the result of an investigation by the U.S. Fish and Wildlife Service and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
United States Attorney for Western District of Oklahoma Involved in Collecting over $701 Million in Fiscal Year 2013Read the Press Release
Oklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced today that his office was involved in collecting a total of $701,879,812 in civil and criminal cases and through asset forfeiture in Fiscal Year 2013.
The Western District of Oklahoma collected $177,335,420.48 in criminal and civil actions FY 2013. Of this amount, $163,574,529.60 was collected in criminal actions and $13,760,890.88 was collected in civil actions.
The Western District of Oklahoma also worked jointly with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $446,231,873.45 in other civil cases pursued jointly with these offices.
Finally, the Western District worked with partner agencies and divisions to collect an additional $78,336,320.00 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."
"These significant recoveries highlight the remarkable work done by the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit," said U.S. Attorney Coats. "These collections are more important than ever and we are committed to recovering the financial losses suffered by victims of crime and money obtained by fraud on the government. The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from their illegal activities."
Significant Cases in the Western District of Oklahoma
In July of this year, the Western District of Oklahoma, in collaboration with the Civil Division of the Department of Justice, announced the resolution of parallel criminal and civil cases against Wyeth Pharmaceuticals, Inc., for the unlawful "off-label" marketing of the prescription drug Rapamune for uses not approved as safe and effective by the FDA. The case concluded with a joint resolution of criminal liability and two civil qui tam cases where Wyeth pled guilty to a criminal misbranding violation under the Federal Food, Drug and Cosmetic Act and paid $490.9 million to resolve its criminal and civil liability arising from the qui tam and criminal cases. The settlement included civil settlements totaling $257.4 million, a criminal fine of $157.58 million, and forfeiture of $76 million.
In April, the Western District of Oklahoma recovered $11,000,000 from CVS Pharmacy, Inc., and Oklahoma CVS Pharmacy, L.L.C., for alleged record-keeping violations under the Controlled Substances Act. The government alleged that CVS (1) used invalid “dummy” DEA registration numbers of prescribing practitioners on dispensing records, (2) filled prescriptions for certain prescribers whose DEA registration numbers were not current or valid, and (3) maintained dispensing records using the DEA registration numbers of non-prescribing practitioners substituted for the actual prescribing practitioners. Accurate prescription records provided to state prescription drug monitoring programs play a vital in ensuring the appropriate handling, accounting, and distribution of controlled substances.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Lawton Woman Sentenced to 33 Months in Prison for Large-Scale ATM TheftRead the Press Release
Oklahoma City, Oklahoma – Maria Estelle Martin, 48, of Lawton, was sentenced today to 33 months in prison for embezzling cash from a credit institution, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Martin worked as an armed security guard for a security company that serviced Lawton-area ATM machines for local banks and credit unions. Her duties included replenishing ATMs with cash from the financial institutions’ vaults. In late 2011 and early 2012, Martin embezzled cash by taking it from the vaults and keeping it rather than using it to replenish the ATMs. Martin gambled away the stolen money through frequent visits to Lawton-area Indian casinos, where she would sometimes put over $70,000 into a single slot machine.
At today’s sentencing, United States District Judge Robin J. Cauthron sentenced Martin to serve 33 months in federal prison. Upon her release from prison, Martin will be on supervised release for five years and will be required to pay $847,942.50 in restitution to the corporate victims of her theft.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and the Lawton Police Department. The case was prosecuted by Assistant U.S. Attorneys Brandon Hale and Chris M. Stephens.
Burns Flat Woman Charged with Producing Child Pornography Involving One-Year-Old ChildRead the Press Release
Oklahoma City, Oklahoma – Today, a federal complaint was filed charging JEANIE SHOULDERS (a/k/a Laura Jean Shoulders), 46, of Burns Flat, Oklahoma, with three counts of producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the complaint affidavit, in the summer of 2012, a male responded to Craigslist personals ad and made contact with Shoulders. It is alleged that the two began corresponding through text messages about sexually explicit themes and exchanged explicit photographs. It is further alleged that the conversations developed into messages concerning child pornography and Shoulders sent three videos of herself performing sexual acts with a one-year-old girl with her iPhone taken in approximately April of this year. It is alleged that the child was in the custody of an acquaintance of Shoulders.
If convicted, Shoulders faces up to 30 years in prison on each of the three counts. The public is reminded that the complaint is merely an accusation and that the defendant is presumed innocent unless and until proven guilty. Reference is made to the court filings for further information.
This case is the result of an investigation by the Oklahoma Internet Crimes Against Children (ICAC) Task Force, Washita County Sheriff’s Office, Burns Flat Police Department, Dewey County Sheriff’s Office, and the United States Secret Service. The Oklahoma ICAC Task Force is part of the National ICAC Task Force, with the Oklahoma State Bureau of Investigation as the lead agency that manages a grant approved by the U.S. Department of Justice for use to specifically investigate and prosecute child exploitation cases. Oklahoma currently has 51 affiliate partner agencies throughout the State who are Oklahoma ICAC Task Force members. The case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Jury Returns Guilty Verdicts Against Former Indian Casino Cashier and her HusbandRead the Press Release
Oklahoma City, Oklahoma – Kimberly Dawn Logsdon, of Chickasha, Oklahoma, was convicted yesterday of embezzling from an Indian casino, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The jury also convicted both her and her husband, William Michael Logsdon, of failing to file federal tax returns.
The Silver Buffalo Casino was an Indian gaming establishment in Anadarko, Oklahoma, operated by the Apache Tribe of Oklahoma. Kimberly Logsdon was employed as a cashier clerk at the casino from July 25, 2007, until her termination on December 3, 2008. The jury heard evidence that from January of 2008 through November of 2008, Ms. Logsdon double-counted certain winning cashout vouchers presented by casino customers for payment and kept a total of $174,472.56. She duplicated payments by treating certain vouchers both as scanned by the computer system and as unscanned vouchers that were not entered into the casino’s computer system. The evidence also showed that neither she nor her husband, William Logsdon, filed federal income tax returns for 2008, in spite of having at least $144,800.00 in gross gambling winnings between May and December of 2008.
Following a five-day trial, the jury deliberated approximately four hours before finding Mrs. Logsdon guilty of embezzlement and both Mr. and Mrs. Logsdon guilty of failing to file federal tax returns. The jury was unable to reach unanimous verdicts on charges that Mr. Logsdon failed to report his wife’s embezzlement to law enforcement and that he committed perjury before a federal grand jury.
As a result of her conviction for casino embezzlement, Ms. Logsdon faces up to 20 years in prison and a $1,000,000 fine, plus mandatory restitution. Both defendants could be sentenced to one year in prison and a fine of $100,000 for failing to file federal tax returns. Reference is made to the second superseding indictment and other public filings for further information.
This case is the result of an investigation by the Bureau of Indian Affairs and the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Travis D. Smith.
Former Employee of Allstate Electrical to Serve Eight Months in Prison for Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Renea I. Windham, of Oklahoma City, was sentenced today to eight months in federal prison for making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors, Inc., in Oklahoma City. According to the Information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At the plea hearing on September 11, 2013, Windham admitted that she prepared that check to herself without Allstate’s permission, and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The Information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At the plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
Today, United States District Judge Robin J. Cauthron sentenced Windham to eight months of imprisonment, followed by three years of supervised release. Windham was ordered to pay restitution to Allstate and its insurance company in the amount of $143,057.10. She was also ordered to pay $26,682.00 in restitution to the Internal Revenue Service for federal income tax due from her unreported embezzlement income.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Jury Finds Bethany Man Guilty of Securities Fraud and Money Laundering for Operating A Ponzi SchemeRead the Press Release
Oklahoma City, Oklahoma - Today, a jury found BRIAN WILLIAM McKYE, 49, from Bethany, Oklahoma, guilty of seven counts of securities fraud and one count of conspiracy to commit money laundering for operating a Ponzi scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Evidence from trial showed that from 2006 through 2009, McKye, did business as Global West Funding Ltd., Global West Financial LLC, Global West Financial LLC, Sure Lock Financial LLC, Sure Lock Loans LLC, and The Wave-Goldmade Ltd. McKye used these businesses to market investment contracts whereby investors were guaranteed a monthly rate of return from 6.5% to 20% for 6 to 60 months. Investors were told they had “100% total control” of their money and that the investments were secured by risk free real estate notes. However, McKye was not a registered investment advisor or broker-dealer in the State of Oklahoma and he used the money he received from investors to pay his own personal and business expenses and some limited returns to investors to keep the scheme on-going. Through this Ponzi scheme, McKye defrauded 83 victim-investors out of over $4.5 million. McKye’s companies were shut down by the Oklahoma Department of Securities in the spring of 2009.
McKye’s original conviction on November 17, 2011, was overturned on appeal. Following a four-day retrial, a jury convicted McKye again today after deliberating for less than 90 minutes. McKye represented himself at trial.
At sentencing, McKye faces up to 20 years in prison and an order to pay restitution to his victims in excess of $4.5 million.
This case was investigated by the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Susan Dickerson Cox.
Indictment Unsealed Charging Moore Resident with Disaster Benefits Fraud Following May TornadoRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury indictment was unsealed today charging BLAKE LYNN SELF, 18, of Moore, Oklahoma, with committing disaster benefits fraud in connection with a claim for benefits following the May 2013 tornados in Moore, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the May 20, 2013, tornado affecting Cleveland County was declared a major disaster and the payment of disaster benefits was authorized. The indictment alleges that on June 14, 2013, Self submitted a false claim for monetary benefits to be paid by Federal Emergency Management Agency (FEMA). Specifically, it is alleged that Self claimed to a FEMA inspector that his primary residence at the time of the May 20, 2013, tornado, was 916 S.W. 14th Street, in Moore, when in fact it was not his residence at that time.
If convicted, Self faces up to 30 years in prison, a $250,000 fine, and payment of restitution. The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty. Reference is made to the indictment for further information.
This case is the result of an investigation by the U.S. Department of Homeland Security Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
The public may report suspected disaster benefits fraud by contacting the Department of Homeland Security Office of Inspector General (www.oig.dhs.gov or by calling toll free 1-800-323-8603) or by calling the Disaster Fraud Hotline at 1-866-720-5721.
Former Moore Resident Who Sought Benefits Following May Tornado Is Charged with Disaster Benefits FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has indicted IRA ROBERT SCHILLING, 42, a former resident of Moore, Oklahoma, for committing disaster benefits fraud and making false statements in connection with a claim for benefits following the May 2013 tornados in Moore, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the May 20, 2013, tornado affecting Cleveland County was declared a major disaster and the payment of disaster benefits was authorized. The indictment alleges that on June 16, 2013, Schilling signed a Department of Air Force memorandum requesting evacuation allowances and benefits on behalf of his dependents. In that memorandum, it is alleged, Schilling certified that after a May 20, 2013, storm he evacuated from a home in Moore, Oklahoma, and that he and two of his dependents were residing at the Safe Haven location in Norman, Oklahoma. Specifically, it is alleged that Schilling falsely submitted a travel voucher to the Air Force for costs associated with his relocation from Moore to Norman when he knew that no such costs had been incurred for a dependent-associated relocation. In addition, it is alleged that Schilling sent an email to the Air Force falsely claiming entitlement to extended Safe Haven benefits, including per diem payments, when he knew that he was not entitled to receive those benefits.
If convicted, Schilling faces up to 30 years in prison, a $250,000 fine, and payment of restitution. The public is reminded that the indictment is merely an accusation and that the defendant is each presumed innocent unless and until proven guilty. Reference is made to the indictment for further information.
This case is the result of an investigation by the U.S. Air Force Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Former Executive Assistant at Oklahoma City University Pleads Guilty to Committing Wire Fraud by Misuse of University Credit CardRead the Press Release
Oklahoma City, Oklahoma – LISA CAROLIN RIGGS, 37, from Yukon, Oklahoma, pled guilty this week to committing wire fraud by misuse of her employer-issued credit card, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Riggs worked at Oklahoma City University (OCU) from May 2004 until November 2011. She worked as the executive assistant to the OCU President from May 2004 to July 2010, as executive assistant to the OCU Vice-President from July 2010 to April 2011, and as executive assistant to the OCU Dean of the School of Business from April 2011 to November 2011. In her positions, Riggs performed administrative and clerical duties that included making university-authorized purchases with an OCU credit card that had been issued in her name.
According to Court records and information from the plea hearing, from September 2004 to November 2011, Riggs used her OCU credit card to purchase various items and services for personal use, including gas, groceries, apparel, travel, wireless phone service, and payments on her Oklahoma Pikepass account. Riggs did not maintain receipts or complete and submit monthly transaction logs to her supervisor for approval as required. Her failure to do so made it appear she did not have any transactions to be approved. In the Spring of 2011, the OCU accounting department discovered the lack of documentation as part of a random audit. In sum, it was alleged that Riggs made unauthorized purchases of goods and services totaling $104,210.33.
Riggs was charged by Information on September 19, 2013, with one count of wire fraud. On October 29, 2013, Riggs pled guilty and agreed to pay restitution of $104,210.33 to OCU and $54,736.59 to the Delta Delta Chapter of Alpha Phi. At sentencing, she faces up to 20 years in prison, a $250,000 fine and restitution. A sentencing hearing will be set by the Court in approximately 90 days.
This case was the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Charles W. Brown.
Owner of St. Anthony Hospital Agrees to Pay $475,000 to Settle Civil Claims of Improper Billing for Inpatient Services That Should Have Been OutpatientRead the Press Release
Oklahoma City, Oklahoma -- SSM Health Care of Oklahoma, Inc. ("SSM"), who owns and operates St. Anthony Hospital in Oklahoma City, Oklahoma, has agreed to pay $475,000 to the United States to settle civil claims relating to SSM’s billing Medicare for inpatient services that should have been billed as outpatient services, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The United States alleged that from February 1, 2007, through February 28, 2009, SSM billed Medicare for inpatient services that should have been billed as outpatient services which resulted in higher reimbursements to SSM. Specifically, it was alleged that individuals who presented at the emergency room, and patients who were scheduled for planned medical procedures, were admitted into the hospital and the services billed on an inpatient basis when they should have been billed on an outpatient basis. The United States alleged that potential liability existed for SSM under the False Claims Act (31 U.S.C.§§3729-3733), the Civil Monetary Penalties Law (42 U.S.C. §13201-72), the Program Fraud Civil remedies Act (31 U.S.C. §§3801-3812, and common law. In order to resolve these claims, SSM agreed to pay $475,000 to the government. In reaching this settlement, SSM did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Department of Health and Human Services Office of Inspector General and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Oklahoma City Psychiatrist to Serve 30 Months in Federal Prison and Pay $20,000 Fine for Health Care FraudRead the Press Release
Oklahoma City, Oklahoma –AMAR NATH BHANDARY, M.D., 53, from Edmond, Oklahoma, was sentenced to serve 30 months in prison by United States District Judge Joe Heaton for health care fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Following his release from prison, Judge Heaton ordered Dr. Bhandary to serve three years supervised release and pay a $20,000 fine.
Dr. Bhandary was licensed to practice medicine in Oklahoma and was engaged in the practice of psychiatry. In March of 2012, he was indicted by a federal grand jury in a 53-count indictment alleging illegal distribution of controlled substances. The indictment alleged that Dr. Bhandary dispensed various controlled drugs to eight separate individuals outside the course of professional practice and without a legitimate medical purpose in 2008 and 2009 and that his actions resulted in the death of five of those individuals from drug toxicity.
From April 15 - 24, 2013, a jury trial was held in Oklahoma City federal court. On April 24, the Court declared a mistrial after the jury was unable to reach a verdict.
On May 22, 2013, a one-count Superseding Information was filed alleging that from September 10, 2008, through October 8, 2008, Dr. Bhandary engaged in health care fraud by submitting false claims to Medicare for services that he had not provided. On May 28, 2013, Dr. Bhandary pled guilty to committing health care fraud.
At the sentencing hearing, Judge Heaton ordered that Dr. Bhandary serve 30 months in prison, serve three years of supervised release upon his release from prison, pay $20,000 fine, pay restitution to Medicare, and forfeit all interest in commercial property located at 7100 N. Classen Blvd., Suites 107, 111 and 115, in Oklahoma City.
These charges are the result of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Norman Police Department. The case was prosecuted by Assistant U.S. Attorney David P. Petermann and former Assistant U.S. Attorney Randy Sengel.
Magazine Article and Photos Lead to Conviction of Hunter for Wildlife ViolationsRead the Press Release
Oklahoma City, Oklahoma – Kyle McCormack, 26, from Oklahoma City, was sentenced to serve a year probation and pay $500 fine after being convicted of illegal transportation of wildlife in interstate commerce, a violation of the Lacey Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
In the July 2012 edition of the Buckmasters magazine, there was a two-page article credited to McCormack including “trophy” photographs of the racks of whitetail bucks. Following a tip to authorities, the Oklahoma Department of Wildlife Conservation and the Kansas Department of Wildlife, Parks and Tourism sought assistance from the U.S. Fish and Wildlife Service. The investigation uncovered that McCormack did not have valid hunting licenses in the locations identified in the article and that the wildlife was illegally killed in Washington and transported to Oklahoma.
McCormack was charged on October 22, 2013, with illegal transportation of an elk and black-tailed deer in interstate commerce. McCormack pled guilty to both counts and was sentenced to serve one year probation and ordered to pay a $500 fine. McCormack also agreed to pay $2,500 into the Lacey Act Reward Account.
This case is the result of an investigation by the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and the Oklahoma Department of Wildlife Conservation. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford II.
The U.S. Fish and Wildlife Service requests that anyone having information relating to a wildlife law violation to call the “Operation Game Thief” hotline in their state. The Oklahoma number for “Operation Game Thief” is (800)522-8039 and accepts calls 24 hours a day, seven days a week. All calls are confidential and the reporting individual has the option of remaining anonymous. You can also visit the U.S. Fish and Wildlife Service website at www.fws.gov/southwest/law enforcement/stateagencies.html to find additional information.
Goldsby Man Sentenced to 210 Months in Prison for Child PornRead the Press Release
Oklahoma City, Oklahoma – Roger Preston Kuhn, 29, of Goldsby, was sentenced today to serve 210 months in federal prison for downloading and possessing child pornography by United States District Court Judge Stephen P. Friot, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, for many years Kuhn heavily consumed child pornography that he downloaded via the Internet. In sentencing Kuhn, the court also considered evidence that he had engaged in predatory behavior by having sexual contact with children.
Kuhn was indicted on May 21, 2013, and pled guilty on June 6, 2013. In addition to the term of imprisonment, the court sentenced Kuhn to an additional term of 10 years’ supervised release upon his release from prison. Kuhn will have to register as a sex offender.
This case was part of Project Safe Childhood, the flagship program in the Department of Justice’s National Strategy for Child Exploitation Prevention and Interdiction, and was the result of an investigation conducted by the Canadian County Sheriff’s Department, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Former Owner of SMC Electronics Sentenced to 13 Years in Prison for Defrauding Nortel NetworksRead the Press Release
Oklahoma City, Oklahoma – Mehran Koranki, formerly of Yukon, Oklahoma, has been sentenced to 13 years in prison for defrauding Nortel Networks by submitting bogus warranty claims for computer parts, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Koranki owned and controlled two Oklahoma City companies in the business of maintaining, repairing, and selling computer networking components – SMC Electronics and Allied Solutions Technical Center (“ASTC”). Both companies had extended warranty agreements with Nortel Networks that allowed businesses with Nortel computer systems to receive replacements for broken or defective parts. These agreements required these businesses to use replacement parts in their own Nortel systems and not to sell replacement parts to third parties.
From February of 2005 until March of 2006, SMC used its extended warranty agreement with Nortel to obtain hundreds of thousands of dollars’ worth of computer networking equipment. During 2005 and the first three months of 2006, SMC fraudulently claimed that it needed replacements for over 850 computer parts under its warranty agreement, mostly line cards for Passport 8600 computer networks. The evidence also showed that SMC did not even use a Nortel computer network. With Koranki’s knowledge and encouragement, SMC then sold these parts for a profit. After Nortel refused to send more parts to SMC, Koranki used his other company, ASTC, to ask for even more replacement parts under a separate extended warranty agreement registered under an employee’s home address and a fake name.
A grand jury indicted Koranki on February 2, 2010, on mail fraud and money laundering charges. The mail fraud counts were based on Federal Express shipments of replacement parts from Nortel’s warehouse in Memphis, Tennessee, to SMC’s offices in Oklahoma City. The money laundering counts related to SMC’s deposits of more than $10,000 from computer companies that purchased Nortel replacement parts that SMC had obtained fraudulently.
After four days of testimony in November of 2010, a jury found Koranki guilty of all 48 counts of mail fraud and two counts of money laundering. After trial, Koranki left the United States and is currently an international fugitive.
Today United States District Judge Timothy D. DeGiusti sentenced Koranki in absentia to 156 months in prison and ordered him to pay $6,010,157.95 in restitution to Nortel Networks. The court also entered a forfeiture money judgment against Koranki in the amount of $6,299,182.95.
This sentence is the result of an investigation conducted by the Postal Inspection Service and Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Amanda Maxfield Green.
Mexican National to Serve 20 Years in Prison for Possession of Meth with Intent to DistributeRead the Press Release
Oklahoma City, Oklahoma – ELIAS VEGA AMADO, 33, a Mexican national, was sentenced by United States Chief District Judge Joe Heaton to serve 240 months in federal prison for possession with intent to distribute methamphetamine, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Amado was indicted by a federal grand jury on March 20, 2013, and charged with five counts: (1) possession with intent to distribute 50 grams or more of methamphetamine, (2) being a felon in possession of eight firearms, (3) being an illegal alien in possession of firearms, (4) possession of firearms in furtherance of a drug trafficking crime, and (5) illegal reentry into the United States after he had been previously deported. Amado pled guilty on May 29, 2013, to counts one and five and he agreed to forfeit all of the firearms.
This case was the result of an investigation conducted by the Oklahoma City Police Department, the Federal Bureau of Investigation, and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney David P. Petermann.
Lawton Woman Pleads Guilty to Large-Scale ATM TheftRead the Press Release
Oklahoma City, Oklahoma – Maria Estelle Martin, 47, of Lawton, pled guilty today to embezzling cash from a credit institution before United States District Court Judge Robin J. Cauthron, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Martin worked for a security company that serviced Lawton-area ATM machines for local banks and credit unions. Her duties included replenishing ATM machines with cash from financial institutions’ vaults. In late 2011 and early 2012, Martin embezzled cash by taking it from the vaults and keeping it rather than using it to replenish the ATM machines.
Martin faces up to 30 years in prison and a $1,000,000 fine at her January 7, 2014, sentencing hearing. She will also be required to pay $846,670 in restitution to the corporate victims of her theft.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and the Lawton Police Department. The case was prosecuted by Assistant U.S. Attorneys Brandon Hale and Chris M. Stephens.
Oklahoma City Man Sentenced to 60 Years in Prison for Advertising Child PornRead the Press Release
Oklahoma City, Oklahoma – MARK EDWARD HAMME, 45, of Oklahoma City, was sentenced today to serve 720 months in federal prison for advertising child pornography by United States District Court Judge Stephen P. Friot, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
"Hamme is a child predator through and through." said U.S. Attorney Coats. "Hamme facilitated the abuse and exploitation of children in several ways, including by operating a prolific network of child pornography. The prison sentence imposed by the Court will ensure that Hamme will never harm another child."
According to court records, for several years Hamme advertised access to a child pornography trading network that he moderated. In order to gain access to Hamme’s network, prospective members had to email him child pornography in the amount of 25 pictures or a video in excess of one minute. Hamme was interested in child pornography depicting prepubescent boys. At sentencing, the court considered evidence that Hamme was a serial predator, whose victims included infants, toddlers, and preteens of both sexes.
Hamme was indicted on February 19, 2013, and pled guilty on April 29, 2013. Hamme faced a heightened maximum sentence of 60 years’ imprisonment because at the time of his federal offense he was already a registered sex offender due to Cherokee County convictions for molesting children.
This case was part of Project Safe Childhood, the flagship program in the Department of Justice’s National Strategy for Child Exploitation Prevention and Interdiction, and was the result of an investigation conducted by the Federal Bureau of Investigation and the United States Marshals Service. The case was prosecuted by United States Attorney Sanford C. Coats and Assistant U.S. Attorney Brandon Hale.
Licensed Counselor Pleads Guilty to Health Care FraudRead the Press Release
Oklahoma City, Oklahoma – LEANN RICHARDSON, 48, of Edmond, Oklahoma, pled guilty today to health care fraud in connection with a scheme to bill Medicaid for behavioral counseling services never provided, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The Medicaid Program provides federal and state funds to pay for health care benefits for individuals who cannot afford necessary medical expenses.
Richardson is a licensed professional counselor approved to bill the Oklahoma Health Care Authority ("OHCA") for behavioral counseling to Medicaid-eligible children. OHCA is the state government agency responsible for receiving, reviewing, and paying Medicaid claims. According to the Information filed in the case, Richardson fraudulently billed OHCA for purported therapy sessions with certain Medicaid beneficiaries twice per week, when she sometimes only saw the children once per week. The Information also alleged that Richardson took two personal trips to Colorado in 2010, but fraudulently billed OHCA for more than 80 behavioral counseling sessions with Medicaid-eligible children during those days when she was out of town. At today’s plea hearing, Richardson admitted that she caused bills to be submitted to Medicaid for counseling services not provided, including false claims for counseling when she was out of town.
Today, Richardson pled guilty to one count of health care fraud. Her punishment for the offense could be as much as ten years in prison, three years of supervised release, and a fine of $250,000. In a plea agreement, she also agrees to pay restitution for the amount of her false billing, to be determined by the court. Sentencing will take place in approximately ninety days.
This charge is the result of an investigation conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, the Oklahoma Department of Health, and the Medicaid Fraud Control Unit of the Oklahoma Office of Attorney General. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to court filings for further information.
Former Employee of Allstate Electrical Pleads Guilty to Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Renea I. Windham, of Oklahoma City, pled guilty in federal court today to making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors, Inc., in Oklahoma City. According to the Information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At today’s plea hearing, Windham admitted that she prepared that check to herself without Allstate’s permission, and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham also admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The Information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At today’s plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
At sentencing, Windham faces up to ten years in federal prison and a fine up to $250,000 on the forged security charge and up to three years in federal prison and a fine up to $250,000.00 on the tax charge. She agreed in her plea agreement to pay restitution to Allstate in the amount of $143,057.10. She also agreed to pay restitution to the Internal Revenue Service in the amount of her federal income tax due, to be determined by the Court. United States District Judge Robin J. Cauthron will sentence Windham on December 11, 2013.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Shawnee Man to Serve 90 Months in Prison for Abuse of Four-Year-Old Child in Indian CountryRead the Press Release
Oklahoma City, Oklahoma – Justin L. Ellis, 26, of Shawnee, Oklahoma, and a tribal member of the Kickapoo Tribe, was sentenced yesterday by U.S. District Court Judge Stephen Friot to serve 90 months in federal prison for malicious injury of a four-year old child on the federal lands held in trust for the Kickapoo Tribe of Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on November 10, 2012, Ellis, a tribal member of the Kickapoo Tribe, repeatedly burned a four-year-old child on the buttocks and legs with a lit cigarette on Kickapoo Tribal land in in Pottawatomie County. Ellis pled guilty on June 3, 2013. At sentencing, the court went above the sentencing guidelines of up to 51 months in prison to fashion a 90-month sentence appropriate to the crime. Upon release from prison, Ellis will be supervised by the U.S. Probation office for an additional three years.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Robert Don Gifford, II.