Northern District of Iowa

A man who conspired to distribute methamphetamine pled guilty on September 10, 2018, in federal court in Sioux City.

Raymond Andrew Kerns, 36, from Cherokee, Iowa, was convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  Kerns was previously convicted of possession of a controlled substance, third or subsequent offense, in the Iowa District Court for Pottawattamie County in August 2017.

At the plea hearing, Kerns admitted that from January 2017 through February 2018, he was involved in a conspiracy that distributed more than 500 grams of methamphetamine mixture in and around the Cherokee, Iowa area.  On February 27, 2018, Kerns was apprehended by law enforcement in Storm Lake, Iowa when Kerns was attempting to meet a co-conspirator for purposes of methamphetamine trafficking.  Law enforcement seized $1,500 and 8 grams of methamphetamine from Kerns, which Kerns admitted he planned to distribute to other persons.   

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared.  Kerns remains in custody of the United States Marshal pending sentencing.  Kerns faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, and at least eight years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Cherokee County Sheriff’s Office, Storm Lake Police Department, and the Iowa Division of Criminalistics Laboratory. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-4025.

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A Mexican man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced September 5, 2018, to more than 2 months in federal prison.

Emmanuel Santos-Diaz, age 34, a citizen of Mexico illegally present in the United States and residing in Hampton, Iowa, received the prison term after a July 17, 2018, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States.

At the guilty plea, Santos-Diaz admitted he had previously been deported from the United States in February 2003, and that he illegally reentered the United States without the permission of the United States government.  Santos-Diaz also admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on March 30, 2015, at a business in Clear Lake, Iowa.  The Social Security account number on the card used by Santos-Diaz belonged to a United States citizen.  The Alien Registration number on the “green card” had been issued to another person. 

In May 2018, the Clear Lake Police Department received a complaint from a woman in Arkansas that she was being denied benefits because someone was using her Social Security number in Iowa to work and that income was being counted against her.  On June 6, 2018, Santos-Diaz was arrested by immigration agents at a job site in Hampton. 

Santos-Diaz also has prior convictions in Franklin County, Iowa, for forgery in 2003 and operating while intoxicated (OWI) in 2005.

Santos-Diaz was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Santos-Diaz was sentenced to 73 days’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Santos-Diaz is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Homeland Security Investigations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-3024-LRR.

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A man who led a long-running heroin distribution organization in Cedar Rapids known by customers as “We the Best” was sentenced today to more than 30 years in federal prison.

Antonio Alonzo Outlaw, age 40, from Chicago, Illinois, and Cedar Rapids, Iowa, received the prison term after a December 11, 2017 jury verdict finding him guilty of conspiring to distribute a kilogram or more of heroin and aiding and abetting the distribution of heroin.  In September 2017, Outlaw pleaded guilty to two counts of distributing heroin in 2013.

The evidence at trial showed that Outlaw ran a heroin distribution operation in Cedar Rapids from at least 2013 through January 2017.  Witnesses testified that Outlaw’s operation was commonly known to customers as “We the Best” because of a signature line commonly included on text messages sent out by members of the group.  After making a phone call to the “We the Best” phone, customers would meet with Outlaw or one of his “runners” to purchase the heroin.  The evidence showed that Outlaw’s group distributed over two kilograms of heroin during the course of the conspiracy.

Other evidence at the sentencing hearing showed that in the fall of 2017, while in federal custody awaiting trial on the heroin charges, Outlaw participated in an attempted jail break from the Bremer County Jail in Waverly, Iowa.  The evidence showed that Outlaw and another federal inmate, Jose Valencia, planned to break out of the jail by having another individual tamper with the exterior of the window to Outlaw’s cell.  Jail staff noticed significant damage to the exterior of the window and ended the attempt before the window was breached.

Outlaw was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Outlaw was sentenced to 365 months’ imprisonment.  He must also serve a ten-year term of supervised release after the prison term.  There is no parole in the federal system.

During the sentencing hearing, the court noted that the trial evidence, which included approximately two dozen customers of “We the Best,” was a “parade of human misery” that showed that Outlaw’s crime significantly impacted the Cedar Rapids community.  The court noted trial evidence that showed that Outlaw’s customers often stole items from retail stores to support their drug habits, and that some of those thefts were requested by Outlaw and other members of “We the Best.”

“Even the smallest dose of heroin can kill, and Outlaw pushed kilograms of this poison into our community for years,” said U.S. Attorney Peter E. Deegan, Jr.  “Today, through the tireless efforts of our prosecutors and law enforcement partners, Outlaw was brought to justice in a court of law.”

Outlaw is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement and is being prosecuted by Assistant United States Attorneys Dan Chatham and Emily Nydle. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 16-CR-91-LRR.

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A man responsible for distributing hundreds of pounds of ice methamphetamine was sentenced today to a life sentence in federal prison.

Jose Maria Valencia, age 44, from La Ruana, Michoacán, Mexico, received the prison term after a February 6, 2018, guilty plea to conspiracy to distribute at least 500 grams of methamphetamine by a drug felon.

In 2013, Valencia was sent to California state prison after being convicted of conspiracy to commit murder.  Despite his incarceration, Valencia continued to run his drug organization.  Using contraband items such as cell phones, Valencia arranged to import methamphetamine from Mexico into the United States.  Once the methamphetamine arrived in the United States, it would be transported to various locations, including Iowa, typically concealed in vehicles.  Defendant was responsible for recruiting, managing, and supervising individuals in the organization.  During the course of the conspiracy, defendant was responsible for distributing at least 250 pounds of ice methamphetamine.     

Valencia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Valencia was sentenced to life imprisonment.  There is no parole in the federal system.

“Valencia continued to push hundreds of pounds of deadly methamphetamine into our community despite being incarcerated in California for conspiracy to commit murder,” said U.S. Attorney Peter E. Deegan, Jr.  “This case is a reminder that we must always remain vigilant in our effort fight back against national and international drug trafficking organizations.”

Valencia is being held in the United States Marshal’s custody until he can be returned to state custody in California.

The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-cr-2041.

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A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than three months in federal prison.

Gerardo Lopez-Mendez, age 32, a citizen of Guatemala illegally present in the United States and residing in Cedar Falls, Iowa, received the prison term after a July 3, 2018, guilty plea to one count of illegal reentry into the United States.

At the guilty plea, Lopez-Mendez admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government.  Lopez-Mendez was found by immigration agents in Cedar Falls in May 2018 following a traffic stop of a vehicle containing six illegal aliens. 

Lopez-Mendez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Lopez-Mendez was sentenced to 98 days’ imprisonment.  He must also serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.

Lopez-Mendez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-2028-LRR.  Follow us on Twitter @USAO_NDIA.

A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.

Diego Eduardo Brito-Garcia, age 24, a citizen of Guatemala illegally present in the United States and residing in Dubuque, Iowa, received the prison term after a July 13, 2018, guilty plea to one count of illegal reentry into the United States.

At the guilty plea, Brito-Garcia admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government in 2015.  Brito-Garcia was found by immigration agents at the Dubuque County Jail in May 2018 following Brito-Garcia’s arrest for domestic abuse assault causing bodily injury.  That matter remains pending.  Brito-Garcia also used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on March 9, 2016, at a business in Dubuque.

Brito-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Brito-Garcia was sentenced to 67 days’ imprisonment.  He must also serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.

Brito-Garcia is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.      

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-1022-LRR. 

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A Mexican man who was illegally in the United States pled guilty on August 28, 2018, in federal court in Sioux City.

Jesus Jonathan Vazquez-Espinoza, 33, a citizen of Mexico illegally present in the United States and who was residing in Spencer, Iowa, was convicted of conspiracy to distribute methamphetamine.

In a plea agreement, Vazquez-Espinoza admitted that he received approximately $10,000 worth of methamphetamine in March 2017, and continued to receive an average of 1 pound of methamphetamine every two weeks until his arrest in April 2018.  Vazquez-Espinoza arranged for the methamphetamine to be delivered by mail to different residences in Iowa.  At the time of Vazquez-Espinoza’s arrest, law enforcement seized over 2 pounds of methamphetamine and $8,712 in cash. 

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared.  Vazquez-Espinoza remains in custody of the United States Marshal pending sentencing.  Vazquez-Espinoza faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $5,000,000 fine, and 5 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Ajay J. Alexander and was investigated by the Iowa Division of Narcotics Enforcement with assistance from the Iowa Great Lakes Drug Task Force, which includes the Clay County Sheriff’s Office, the Dickinson County Sheriff’s Office, the O’Brien County Sheriff’s Office, the Iowa State Patrol, Spencer Police Department, the Okoboji Police Department, and the Iowa Division of Criminal Investigation. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-4032-LTS.

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A former vice president at Center Point Bank & Trust who aided and abetted the obstruction of an FDIC examination pled guilty on August 27, 2018.

Martin Smith, age 38, from Center Point, Iowa, was convicted of Aiding and Abetting the Obstruction of the Examination of a Financial Institution.  At the plea hearing, Smith admitted that he backdated a refinancing loan to obstruct an FDIC investigation. 

Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared.  Smith remains free on bond previously set pending sentencing.  Smith faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Jacob A. Schunk and was investigated by the FDIC Office of Inspector General and the United States Secret Service. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 1:18-cr-00076-LTS.

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An Iowa Falls man who was prohibited from possessing guns because of prior misdemeanor domestic abuse convictions was sentenced August 24, 2018, to more than a year in federal prison.

Heath Allen Ziesman, age 35, from Iowa Falls, Iowa, received the prison term after a March 5, 2018, guilty plea to possession of a firearm by a domestic abuser.

Court documents and evidence at the sentencing hearing showed that on June 18, 2015, police investigators executed a search warrant at Ziesman’s residence in Iowa Falls.  Investigators recovered a loaded Rock Island Armory .45 caliber pistol and a box of .45 caliber ammunition in a dresser drawer by Ziesman’s bed.  They also found a loaded rifle, a shotgun, detached shotgun barrels, boxes of ammunition, and numerous loose cartridges of ammunition in the basement.

In March 2010, Ziesman was convicted of first degree harassment for threatening his ex-girlfriend.  Ziesman sent compromising photographs of his ex-girlfriend to her family members and threatened to send the photographs to the schoolboard where she worked.

In July 2012, Ziesman was convicted of domestic abuse assault for grabbing his ex-wife’s neck and choking her.  While still on probation for this assault conviction, Ziesman pushed his ex-wife down three stairs, causing her to smash her forehead into a door frame and splitting open her skin.  She needed 27 stitches to seal her wound.  Ziesman received a second domestic abuse assault conviction in July 2013.

Ziesman was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand.  He was sentenced to 18 months’ imprisonment and must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

Ziesman was released on conditions previously set and is to surrender to the United States Marshal on a date yet to be set.

The case was prosecuted by Special Assistant United States Attorneys Erin Eldridge and Drew Inman and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Franklin County Sheriff’s Office. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-CR-98-LTS.

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A man who trafficked at least 50 pounds of methamphetamine in the Dubuque, Iowa, area was sentenced yesterday to 20 years in federal prison.

Derek Richard Rath, age 35, from Dubuque, received the prison term after an August 23, 2018, guilty plea to conspiracy to distribute methamphetamine near a school and conspiracy to commit money laundering.

Court documents and evidence presented at the sentencing hearing established that in June 2016, Rath obtained the phone number of codefendant Anthony Robert McCarron in Phoenix.  Shortly after, Rath and McCarron agreed that Rath would pay McCarron to ship packages of ice methamphetamine to several addresses in Dubuque.  McCarron mailed at least 50 pounds of methamphetamine to Rath between July 2016 to July 2017.

Rath paid for the methamphetamine by mailing packages of cash to McCarron.  In all, Rath and McCarron mailed at least 56 packages, sometimes using aliases on the shipping labels.  They also wired thousands of dollars to each other with MoneyGram, Western Union, and Walmart2Walmart.

Rath was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand to 240 months’ imprisonment.  He must also serve a 10-year term of supervised release after the prison term.  There is no parole in the federal system.  Rath is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Drug Task Force, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation.  Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 17-CR-1042-LTS.

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A man who conspired with others to distribute ice methamphetamine was convicted by a jury on August 22, 2018, after a three-day trial in federal court in Cedar Rapids.

Robert Lewis, age 43, from Janesville, Iowa, was convicted of conspiracy to distribute at least 500 grams of a mixture of methamphetamine and 50 grams of actual methamphetamine.  The verdict was returned August 22, 2018, following about three hours of jury deliberations.

The evidence at trial showed that in the summer of 2013, Lewis began working with others to distribute ice methamphetamine throughout the Waterloo area.  Lewis and his associates obtained methamphetamine from an out-of-state source of supply.  The source shipped the methamphetamine via FedEx concealed in car part boxes.  Each shipment contained multiple pounds of methamphetamine.  Lewis and others then broke the methamphetamine down into smaller quantities for sale once it arrived in Iowa.  Lewis also used his daughter to register a vehicle for the head of the drug organization and allowed other members of the conspiracy access to his home, referred to at trial as the “clubhouse,” for the purpose of repackaging and distributing methamphetamine.  Lewis left Iowa in the fall of 2013, but continued to receive methamphetamine from his associates.  For example, in January 2014, one person attempted to send Lewis methamphetamine hidden in a Hamburger Skillet prepared meal box.  FedEx employees flagged the package as suspicious and investigators ultimately seized a quarter ounce of methamphetamine from inside the box.

Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared.  Lewis remains in custody of the United States Marshal pending sentencing.  Lewis faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and five years of supervised release following any imprisonment.

The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, and the Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department). 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-CR-2084.

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A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than four months in federal prison.

Pedro Isaias Jax-Tiu, age 22, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a June 4, 2018, guilty plea to one count of illegal reentry into the United States.

At the guilty plea, Jax-Tiu admitted he had previously been deported from the United States in 2015 and illegally reentered the United States without the permission of the United States government.  When Jax-Tiu was found by immigration agents in Cedar Rapids, Iowa, in April 2018, Jax-Tiu provided the agents with a false name and date of birth.  Analysis of Jax-Tiu’s fingerprints established his true name and prior deportation.

Jax-Tiu was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand.  Jax-Tiu was sentenced to 127 days’ imprisonment.  He must also serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.

Jax-Tiu is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-40-LTS. 

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Guilherme Alves De Melo (Alves), age 32, a citizen of Brazil, pled guilty today to one count of intimidating a flight crew member and flight attendants, thereby lessening or interfering with their ability to perform their duties, in violation of federal law.­ The charge was contained in an Indictment returned July 25, 2018, in United States District Court in Cedar Rapids. 

An affidavit previously filed in the case alleged that, on or about June 23, 2018, Alves was a passenger on an international American Airlines flight originating in Calgary, Canada, and bound for Chicago, Illinois. During the flight, Alves became disruptive and a flight attendant repeatedly told him that he needed to calm down. The flight attendant brought the disruptive conduct to the attention of the captain. About an hour before the flight was to arrive in Chicago, Alves again became disruptive and was scaring others passengers. Less than a minute later, Alves “lost it,” leading to some of the passengers restraining him with zip ties provided by the flight crew.  As a result of Alves’ behavior, the flight was diverted to the Eastern Iowa Airport in Cedar Rapids after it had begun its final descent to Chicago. 

After the aircraft landed in Cedar Rapids, Alves was removed from the airplane by Cedar Rapids Police.  However, he again became loud and used expletives within sight and sound of other passengers and employees at the airport.  Alves was charged with disorderly conduct for these actions and, on June 24, 2018, pleaded guilty to disorderly conduct in Linn County District Court.

Alves faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment.  A sentencing date will be set at a later date.

The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-00071.

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A Mexican man who used false identification documents to obtain a job was sentenced August 21, 2018, to almost four months in federal prison.

Jose de Jesus Becerra-Lopez, age 24, a citizen of Mexico illegally present in the United States and living in Dyersville, Iowa, received the prison term after a June 4, 2018, guilty plea to one count of unlawful use of identification documents. 

At the guilty plea, Becerra-Lopez admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on January 3, 2018, at a business in Cascade, Iowa.  The Social Security number was invalid and the Alien Registration number on the “green card” was issued to another person. 

Becerra-Lopez was previously deported from the United States to Mexico in 2012.  He illegally reentered the United States without the permission of the United States government.  On February 4, 2018, Becerra-Lopez was found by immigration agents following a roll-over vehicle accident in Muscatine County.

Becerra-Lopez was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand.  Becerra-Lopez was sentenced to 118 days’ imprisonment.  He must also serve a two-year term of supervised release after the prison term.  There is no parole in the federal system.

Becerra-Lopez is being held in the United States Marshal’s custody until he can be turned over to immigration officials. 

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-1013-LTS.

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A Mexican man who used false identification documents to obtain a job was sentenced today to almost four months in federal prison.

Rogelio Lagunas-Chavez, age 32, a citizen of Mexico illegally present in the United States and living in Cedar Rapids, Iowa, received the prison term after a May 24, 2018, guilty plea to one count of unlawful use of identification documents.

At the guilty plea, Lagunas-Chavez admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on March 7, 2016, at a business in Cedar Rapids, Iowa.  The Social Security number and the Alien Registration number on the “green card” were issued to other persons.  Lagunas-Chavez also used the same fraudulent Social Security card and “green card” when applying for work in Cedar Rapids in March 2007.

During a one week period in May 2006, Lagunas-Chavez illegally entered the United States and was returned to Mexico by immigration officials four times.  He most recently came to the attention of immigration following his arrest in Linn County, Iowa, for operating while intoxicated (OWI) in April 2018.  That matter remains pending.

Lagunas-Chavez was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand.  Lagunas-Chavez was sentenced to 119 days’ imprisonment.  He must also serve a two-year term of supervised release after the prison term.  There is no parole in the federal system.

Lagunas-Chavez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-38-LTS.

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A man who filed false and fraudulent tax returns was sentenced August 20, 2018, to two years’ probation.

Kurt Neldeberg, 65, from Whiting, Iowa, received the sentence after a February 28, 2018, guilty plea to making a false and fraudulent tax return.

At the guilty plea hearing, Neldeberg admitted that from at least 2009 through 2012, he failed to report a total of approximately $315,512 in income from grain sales which resulted in over $100,000 in unpaid and taxes due and owing for those tax years.  Neldeberg admitted he deposited proceeds from farm grain sales into personal bank accounts, and willfully failed to inform his bookkeeper and his tax preparer he had done so.  Neldeberg knew that the farm receipts reported on Schedule F of his joint federal tax returns were incorrect, resulting in underreported income for each of the tax years 2009-2012 and tax losses therefrom.   

Neldeberg was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Neldeberg was sentenced to 24 months’ federal probation and ordered to complete 120 hours of community service.  He was also ordered to pay a $100 special assessment.  Finally, Neldeberg was ordered to make full restitution to the Internal Revenue Service, including any and all interest and penalties determined to be due and owing.  Neldeberg had previously posted a $125,000 cash bond to the IRS for restitution purposes. 

The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Internal Revenue Service. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-4012.  Follow us on Twitter @USAO_NDIA.

A man who conspired to distribute methamphetamine pled guilty on August 21, 2018, in federal court in Sioux City.

Lee Charles Mercer, 42, from Galva, Iowa, was convicted of conspiracy to distribute methamphetamine.  Mercer was previously convicted of three separate felony drug offenses in the Iowa District Court in 2013, 2004 and 1998.

At the plea hearing, Mercer admitted that from November 2017 through March 2018, he was involved in a conspiracy that distributed more than 2500 grams of methamphetamine mixture in and around Galva, Iowa.  On March 12, 2018, Mercer was stopped for a traffic violation in Woodbury County, Iowa.  During law enforcement’s consent to search Mercer’s vehicle, approximately 4 ounces of methamphetamine was seized in four separate baggies, along with $5,000 in cash.  Mercer admitted he planned to distribute the methamphetamine to other persons.  Mercer further admitted that he planned to use the $5,000 to purchase a pound of methamphetamine later in Sioux City, Iowa.   

Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared.  Mercer remains in custody of the United States Marshal pending sentencing.  Mercer faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Woodbury County Sheriff’s Office, Sioux City Police Department, and the Drug Enforcement Administration Laboratory. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-4018.

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WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.

On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.

In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.

The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:

 

Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.

"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs.  These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”

“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”

“The effect of the opioid epidemic could not be clearer – American life expectancy is shorter for the first time in decades,” United States Attorney for the Northern District of Iowa Peter E. Deegan, Jr. stated.  “Heroin and prescription opioid abuse have taken a devastating toll on communities in this district and my office is committed to prosecuting those who distribute these dangerous drugs.  But criminal prosecutions alone will not protect our communities.  Reducing the amount of prescription opioids on the street and the number of people who become addicted to prescription opioids is another important step in addressing the opioid epidemic.”

Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.

When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.

The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.

In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing

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A woman who sold at least five pounds of ice methamphetamine pled guilty August 9, 2018, in federal court in Cedar Rapids.

Lauren Nicole Ward, age 30, originally from Newport News, Virginia, was convicted of conspiracy to distribute methamphetamine.

At a previous court hearing, evidence showed that, beginning in August 2017, Ward lived with a roommate in a house in Cedar Rapids.  Ward’s roommate was receiving approximately 10 to 15 pounds of methamphetamine per month from Mexican sources during this time.  While she was living at the house, Ward sold at least five pounds of her roommate’s methamphetamine.  Ward’s roommate also directed Ward to use Wells Fargo and Western Union to wire thousands of dollars to Mexico.  Ward was paid $100 each time she wired money for her roommate.

Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared.  Ward was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing.  She faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment without the possibility of parole, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.

The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, Marion Police Department, Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Linn County Sheriff’s Office.  Court file information at https://ecf.iand.uscourts.gov.  The case file number is 18-CR-66-LRR.

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A man who conspired to distribute heroin within protected locations was convicted by a jury on August 14, 2018, after a 3 ½-day trial in federal court in Sioux City.

Shelton Oliver, a/k/a Sinbad, 47, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute heroin and four counts of distribution of heroin, all within 1000 feet of a protected location.  The verdict was returned following approximately two hours of jury deliberations.

The evidence at trial showed that Oliver distributed heroin on February 7, 14, and 27, 2018, and March 13, 2018, to a confidential informant utilized by law enforcement.  Evidence also showed at trial that Oliver was involved in a conspiracy to distribute heroin in the Sioux City area from 2016 through on or about March 27, 2018.  Evidence proved that the conspiracy and the four separate distributions all occurred within 1000 feet of protected locations, namely: Dale Street Park, Grandview Park, Alfred Thompson Children’s Park, Dinosaur Park, and Hunt Elementary School, in Sioux City, Iowa. 

Evidence at trial also showed that on October 6, 2017, Oliver distributed heroin to Ty Olsen, who later died on this same date from a heroin overdose.  The evidence at trial further showed that on March 13, 2018, Oliver distributed heroin to the confidential informant in a vehicle while Michael Pinney was overdosing in the passenger seat but was later revived by medical personnel.  

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared.  Oliver remains in custody of the United States Marshal pending sentencing.  Oliver faces a mandatory minimum sentence of life imprisonment, a $20,000,000 fine, and at least 6 years of supervised release, if ever released from imprisonment.

The case is being prosecuted by Assistant United States Attorney Jack Lammers and Mikala Steenholdt and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.  

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-4038.

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A registered nurse who used patient identities to steal hydrocodone pain pills while employed in a hospital emergency room pled guilty August 13, 2018, in federal court in Cedar Rapids.

James Allen Moorehead, age 58, from Mason City, Iowa, pled guilty to one count of acquiring a controlled substance by misrepresentation, fraud, deception, or subterfuge, one count of false statements relating to health care matters, and one count of aggravated identity theft.

In a plea agreement, Moorehead admitted that, while employed at Franklin General Hospital in Hampton, Iowa, as a registered nurse in 2016 and 2017, he used patient identities to obtain controlled substances, specifically pills containing hydrocodone, by accessing their prescribed medication in the hospital’s system, and diverting those pain pills to himself.  Moorehead concealed his scheme by falsely representing in medical records that the medications were actually administered to the patients and by giving his patients Tylenol instead of their prescribed medications.  As a result of Moorehead’s subterfuge and diversion of their mediation, multiple patients reported increased pain during Moorehead’s shifts.

Moorehead had previously surrendered his nursing license under a 2008 Iowa Board of Nursing agreement, after having been terminated from North Iowa Mercy Health Center and Genesis Health Center for stealing opioids. Moorehead recovered his nursing license in June 2011 and had been working at Franklin General Hospital since March 2012 until he was terminated in March 2017.

Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared.  Moorehead remains free on bond previously set pending sentencing.  Moorehead faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of eleven years’ imprisonment, a $750,000 fine, and five years of supervised release following any imprisonment

The case is being prosecuted by Assistant United States Attorney Lyndie M. Freeman and was investigated by the Iowa Medicaid Fraud Control Unit.  Court file information at https://ecf.iand.uscourts.gov/. The case file number is 18-CR-3021.

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A man who possessed a .357 Magnum revolver as an unlawful user of marijuana pled guilty August 13, 2018, in federal court in Cedar Rapids.

Javontae Ernie Grisson, age 22, from Dubuque, Iowa, was convicted of possession of a firearm by a drug user.

A criminal complaint previously filed alleged that on May 17, 2018, police investigators executed a search warrant at Grisson’s apartment in Dubuque.  During the search, investigators found drug paraphernalia and marijuana strewn throughout the apartment.  Investigators found a .357 Magnum revolver with ammunition on Grisson’s bed. 

Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared.  Grisson remains released on previously set court conditions pending sentencing.  He faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release following any imprisonment.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated by the Dubuque Drug Task Force, Dubuque Police Department, Dubuque County Sheriff’s Office, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-1026-LRR.

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A man and woman who trafficked massive quantities of ice methamphetamine into Iowa have pled guilty in federal court in Cedar Rapids.

Marty Brian Robbins, age 55, of Marion, Iowa, was convicted of conspiracy to distribute methamphetamine.  Robbins’ co-defendant, Valerie Lee Kupka, age 42, of Clutier, Iowa, had previously been convicted of conspiracy to distribute methamphetamine on August 10, 2018.

Robbins’ plea agreement and evidence from previous court hearings showed that starting in April 2017, Robbins obtained large shipments of ice methamphetamine from sources in the Southwest United States.  He then transported the methamphetamine to Iowa in a trailer.  Kupka assisted Robbins in selling the methamphetamine in Iowa.

In the late evening of April 20, 2018, police investigators conducted surveillance on Robbins while he was at a storage facility in Cedar Rapids.  Investigators saw Robbins and others unload boxes of suspected methamphetamine from Robbins’ trailer.  After executing several search warrants on Robbins’ truck, trailer, and other cars, police investigators recovered approximately nine pounds of ice methamphetamine.  Investigators also recovered a total of $57,122 in cash proceeds of methamphetamine sales during their investigation into Robbins and Kupka.

On May 26, 2018, Robbins and Kupka were arrested on federal warrants while entering Nogales, Arizona, from Mexico at the Nogales-Grand Avenue Port of Entry.

Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared.  Robbins remains in custody of the United States Marshal pending sentencing.  Robbins faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment without the possibility of parole, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.

The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated by the Johnson County Task Force, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, Cedar Rapids Police Department, Cerro Gordo Sheriff’s Office, Tama County Sheriff’s Office, Iowa State Patrol, and Marion Police Department. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-62-LRR.

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A Mexican man who used a false identification document to obtain a job was sentenced today to six months in federal prison.

Jose Lopez-Garcia, age 35, a citizen of Mexico illegally present in the United States and living in Cedar Rapids, Iowa, received the prison term after a June 7, 2018, jury verdict finding him guilty of one count of unlawful use of an identification document. 

Evidence at trial showed that Lopez-Garcia used a fraudulent permanent resident card, also known as a “green card,” bearing a number assigned to a female born in Cuba in 1934, when he completed an employment form on November 18, 2016, at a business in Cedar Rapids.  Lopez-Garcia also used a fraudulent “green card” when he applied for work at another Cedar Rapids business on February 22, 2017.

Lopez-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Lopez-Garcia was sentenced to six months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Lopez-Garcia is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-24-LRR.

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A woman who distributed a fatal dose of methadone pled guilty on August 6, 2018, in federal court in Cedar Rapids.

Brianna Marie Martin, age 24, from Dubuque, Iowa, was convicted of one count of distribution of heroin.

Prior court documents reflect that on July 19, 2016, the Dubuque Drug Task Force investigated the death of an individual who had obtained heroin by using Martin as a connection to a heroin dealer.  At the plea hearing, Martin admitted she had facilitated the heroin transaction.  An autopsy determined that this individual died as a result of mixed drug toxicity involving methamphetamine and heroin.  On July 28, 2016, the Dubuque Drug Task Force utilized a confidential source to arrange a controlled buy of heroin through Martin from the same drug dealer.  At the plea hearing, Martin admitted that, during the July 28 controlled buy, she distributed heroin to the confidential source. 

Martin also admitted that in July 2015, she was participating in a drug treatment program in Galena, Illinois.  As a part of that program, she obtained a “take home” dose of methadone on a Saturday, for use on Sunday when the methadone clinic was closed.  Martin admitted she would sometimes sell her “take home” dose of methadone to others.  She admitted that on July 12, 2015, she distributed her “take home” dose to other individuals.  On July 13, 2015, one of those individuals was found unresponsive and later pronounced dead.  An autopsy determined that this individual died of complications of acute methadone intoxication.

Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared.  Martin was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing.  Martin faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and up to a lifetime term of supervised release following any imprisonment.

The case was investigated by the Dubuque Drug Task Force is being prosecuted by Assistant United States Attorney Dan Chatham. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-1021-LTS.

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A Guatemalan man who used false identification documents to obtain a job was sentenced today to six months in federal prison.

Jose Corio-Raymundo, age 40, a citizen of Guatemala illegally present in the United States, received the prison term after a June 5, 2018, jury verdict finding him guilty of one count of unlawful use of an identification document and one count of misuse of a social security number.

The evidence at trial showed that Corio-Raymundo used a fraudulent Social Security card bearing the social security number assigned to a United States citizen, and a fraudulent State of Iowa identification card when he completed an employment form on October 2, 2013, at a business in Cedar Rapids, Iowa.  Corio-Raymundo also used the social security number of the United States citizen on state and federal tax forms.  On the employment form, Corio-Raymundo falsely claimed to be a United States citizen.  The investigation began when the Iowa Department of Transportation noticed that Corio-Raymundo was trying to register vehicles under a second social security number.  Their investigation disclosed that Corio-Raymundo used the social security number to title vehicles, when he was arrested by police on traffic violations, and when he obtained employment at four businesses in Cedar Rapids.

Corio-Raymundo was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Corio-Raymundo was sentenced to six months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Corio-Raymundo is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations and the Iowa Department of Transportation, Bureau of Investigation and Identity Protection. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-08-LRR.

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A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.

Abner Velasquez-Garcia, age 28, a citizen of Guatemala illegally present in the United States and residing in Cedar Falls, Iowa, received the prison term after a guilty plea to one count of illegal reentry into the United States.

At the guilty plea, Velasquez-Garcia admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. 

The facts show that when Velasquez-Garcia applied for admission into the United States at the Arizona border on June 4, 2015, he provided a fraudulent Arizona driver’s license with a false name and date of birth.  After questioning, Velasquez-Garcia gave immigration officials a different name and date of birth.  Eventually, on June 6, 2015, Velasquez-Garcia admitted his true name and date of birth.  Velasquez-Garcia was deported to Guatemala on January 18, 2016.  On May 14, 2018, Velasquez-Garcia was found by immigration officers along with five other illegal aliens after their car was stopped in Cedar Falls for traffic violations. 

Velasquez-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Velasquez-Garcia was sentenced to 75 days’ imprisonment.  He must also serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.

Velasquez-Garcia is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-2029-LRR. 

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A methamphetamine dealer who fired his gun at a Cedar Rapids gas station pled guilty on August 1, 2018, in federal court in Cedar Rapids.

Jerry Dean Love, age 39, of Cedar Rapids, Iowa, was convicted of distribution of methamphetamine and possession of a firearm by a felon.

In a plea agreement, Love admitted that on October 26, 2016, he sold an ounce of ice methamphetamine at his house in Cedar Rapids to an undercover police informant.  On February 6, 2017, Love drove to the Guppy’s on the Go on Edgewood Road NW in Cedar Rapids while carrying a .45 caliber pistol.  Love got out of his truck, approached the store, and fired his pistol into the street.  Love was a convicted felon and prohibited from possessing guns.

Love then drove to Casey’s General Store on 33rd Avenue SW.  Approximately one hour after Love fired his pistol, police officers spotted him in his truck at Casey’s and repeatedly ordered him to get out of the truck.  Love stayed in his truck for over ten minutes.  Officers then broke Love’s truck windows and sent a dog into the truck to get Love to leave the truck.

During Love’s arrest, officers found 19.2 grams of pure methamphetamine and $360 in cash on him.  In his plea agreement, Love admitted he intended to distribute part of the methamphetamine.  Officers also searched Love’s truck and found the .45 caliber pistol, a loaded .45 caliber magazine, a methamphetamine pipe, and 11 additional .45 caliber cartridges.

Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared.  Love remains in custody of the United States Marshal and will remain in custody pending sentencing.  He faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, an $8,250,000 fine, and at least five years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorneys Justin A. Lightfoot and Patrick J. Reinert and Special Assistant United States Attorney Drew O. Inman and was investigated by the Cedar Rapids Police Department, Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, Linn County Sheriff’s Office, Marion Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case was brought as part of Project Safe Neighborhoods (“PSN”), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-CR-12-LRR.

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On July 18, 2018, Assistant United States Attorney Tony Morfitt of the U.S. Attorney’s Office in the Northern District of Iowa, was confirmed to be promoted to the rank of Lieutenant Colonel in the Air Force and Iowa Air National Guard. 

Lieutenant Colonel Morfitt currently serves as the Staff Judge Advocate for the 132d Wing, Iowa Air National Guard, in Des Moines, Iowa. The 132d Wing trains, deploys, executes, and sustains operations in missions supporting the Nation, State, and Community.  The unit’s current missions include remotely piloted aircraft, cyber, and intelligence, surveillance, and reconnaissance missions.

“The Northern District of Iowa United States Attorney's Office is very proud of Lieutenant Colonel Morfitt,” United States Attorney Peter Deegan stated.  “As an AUSA and a member of the military, he has served his country with honor and distinction.  My office is committed to supporting not only Lieutenant Colonel Morfitt in his continuing military service, but ensuring that all members of the National Guard and Reserves in this district are supported and protected under the Uniformed Services Employment and Reemployment Rights Act.”

Prior to joining the 132d Wing, Lieutenant Colonel Morfitt was on active duty for over four years and was a member of the Air Force Reserves.  During his career, he has been stationed in Illinois, Colorado, Kansas, and Iowa.  He also completed a one-year remote tour of duty at Osan Air Base in South Korea.

In his civilian capacity, AUSA Morfitt has prosecuted a variety of federal criminal cases since joining the U.S. Attorney’s Office in 2010.  During that time, he prosecuted two cases arising out of three murders that happened within six weeks, for which he won an Executive Office for U.S. Attorneys Director’s Award in 2007.  In 2016, AUSA Morfitt successfully prosecuted Randy Metcalf, who was convicted by a jury of a racially motivated assault in Dubuque.  Metcalf ultimately received the statutory maximum sentence of ten years in prison for committing a hate crime.

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A Dubuque man who trafficked pounds of ice methamphetamine pled guilty today in federal court in Cedar Rapids.  Samuel Oliver Taylor, III, age 41, of Dubuque, Iowa, was convicted of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. 

Taylor was the last of nine defendants charged in the same criminal case convicted for their involvement in a conspiracy to distribute methamphetamine throughout Dubuque.  On January 24, 2018, Melissa Marie Petesch, age 30, of Dubuque, was convicted of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.  On March 8, 2018, Jose Juan Ceja, age 25, of Bell Gardens, California, and Michael Scott Boen, II, age 26, of Petosi, Wisconsin, were convicted of conspiracy to distribute methamphetamine.  On May 21, 2018, Joshua Allen Carter, age 33, of Dubuque, was convicted of conspiracy to distribute methamphetamine.  On May 30, 2018, Keith Richard Ellis, age 35, of Dubuque, and Martel Elliot Fountain, Sr., age 28, of Dubuque, were convicted of conspiracy to distribute methamphetamine.  On August 1, 2018, Mauricio Eduardo Bayardo Chan, age 20, from Mexico, was convicted of conspiracy to distribute methamphetamine and conspiracy to commit money laundering.  On August 2, 2018, Brenda Lynn Harker, age 40, of Dubuque, was convicted of conspiracy to distribute methamphetamine and conspiracy to commit money laundering. 

The defendants’ plea agreements and evidence at previous court hearings establish that in February 2017, Taylor met Bayardo Chan in a hotel in Cedar Rapids, where Taylor purchased multiple ounces of ice methamphetamine from Bayardo Chan.  After this meeting, Bayardo Chan personally delivered several more ounces of ice methamphetamine to Taylor.  At the time, Taylor was living with Petesch in Petesch’s house on North Main Street in Dubuque.

Sometime in June 2017, Bayardo Chan met Taylor again and proposed that Bayardo Chan arrange for larger shipments of ice methamphetamine to be mailed to Taylor’s house.  Taylor agreed and Bayardo Chan directed Taylor to pay for some of the shipments by wiring money through Western Union.  Bayardo Chan instructed Taylor to wire the money to various people with addresses in Sinaloa, Mexico.  Taylor had Harker, Petesch, and others wire thousands of dollars in drug proceeds on his behalf to Mexico.

From June 2017 until November 2017, Bayardo Chan mailed pounds of ice methamphetamine in several packages to Taylor’s house, where Taylor sold the methamphetamine to various dealers and users throughout Dubuque.  Petesch assisted Taylor in selling the methamphetamine from her house.  Taylor sold ounces of methamphetamine at a time to Boen, Carter, Ellis, Fountain, and Harker, which they would then redistribute.  Periodically, Bayardo Chan and Ceja would meet Taylor at his residence to collect payments for the methamphetamine shipments.

On August 17, 2017, police investigators executed a search warrant at Carter’s house in Dubuque.  Inside Carter’s residence, investigators found $4,743 in cash from his methamphetamine sales.  Investigators also found approximately six ounces of ice methamphetamine that Carter was planning to sell. 

On November 10, 2017, police investigators executed a search warrant on Petesch’s house.  Investigators found $14,399 in cash from Taylor’s methamphetamine sales and two handguns that Taylor and Petesch were using to protect their methamphetamine proceeds.  Further, investigators found Taylor standing outside of a bathroom where they discovered methamphetamine dissolving in the toilet bowl.  Ultimately, investigators recovered over two ounces of ice methamphetamine from Petesch’s house.

On February 1, 2018, Ceja was arrested at the San Ysidro Port of Entry border crossing between San Diego, California, and Tijuana, Mexico.  On March 20, 2018, Bayardo Chan was arrested in downtown New York City.

Taylor’s sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared.  Taylor and all other defendants remain in custody of the United States Marshal pending sentencing.  Taylor faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,750,000 fine, and at least 5 years’ supervised release following any imprisonment.

The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program of the United States Department of Justice, through a cooperative effort of the Federal Bureau of Investigation, Dubuque Drug Task Force, Iowa Division of Narcotics Enforcement, Dubuque Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-1002-LTS.

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John Hunt, age 34, of Cedar Rapids, Iowa, has been charged with sexual exploitation of a child, possession of child pornography, and extortion.  The charges are contained in an Indictment filed on July 26, 2018, in United States District Court in Cedar Rapids. 

The Indictment alleges that, between 2015 and 2017, Hunt produced sexual depictions of a child, possessed child pornography on four different devices, and sent communications containing threats to distribute sexually explicit depictions. 

If convicted, Hunt faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 112 years’ imprisonment, a $1,500,000 fine, $25,600 in special assessments, and at least five years and up to life on supervised release following any imprisonment. 

Hunt appeared on August 1, 2018 in federal court in Cedar Rapids for a detention hearing and was held without bond.  Hunt’s next appearance for trial is set for October 1, 2018. 

As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty. 

This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” 

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is CR 18-69.

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Five men and three women who conspired to distribute methamphetamine in the Sioux City area were sentenced to prison terms ranging from 84 to 204 months following guilty pleas entered over the past year.

Justin Wilde, age 39, of Sioux City, received his prison term after an August 1, 2017, guilty plea; Eduardo Ledesma, age 24, of South Sioux City, Nebraska, received his prison term after an August 23, 2017, guilty plea; Ruben Rios, age 22, of South Sioux City, received his prison term after a September 8, 2017, guilty plea; Adam Doty, age 29, of Sioux City, received his prison term after a September 15, 2017, guilty plea; Stormie Blank, age 33, of South Sioux City, received her prison term after an October 25, 2017, guilty plea; Joanna Gotschall, age 40, of South Sioux City, received her prison term after a November 16, 2017, guilty plea; Melanie Thiebault age 46, and Matthew Ruhland, age 36, both of Sioux City, each received their prison term after their January 19, 2018, guilty pleas. Wilde, Ledesma, Rios, Doty, Blank, Gotschall, Thiebault and Ruhland each pled guilty to conspiracy to distribute methamphetamine.

Information provided by the United States at the sentencings and change of plea hearings showed Rios and Ledesma were multiple pound sources of supply of methamphetamine, cocaine, and marijuana in the area of Sioux City, Iowa and South Sioux City, Nebraska, as well as South Dakota.  Ledesma and Rios resided together in the Rios family home in South Sioux City, Nebraska. Ledesma and Rios were leaders of their drug dealing operation, which began in 2014.  Many of the drug transactions were initiated from the Rios residence. Evidence gathered by law enforcement and described in the sentencing hearings showed that Rios and Ledesma were also trafficking weapons.  During a search of the Rios home, officers discovered a loaded assault rifle, marijuana, methamphetamine, nearly a pound of cocaine, and approximately $150,000 in two different safes.  $50,000 of this money was to purchase more drugs, while the remaining money was profit from the drug conspiracy.  Ledesma was selling over $25,000 worth of methamphetamine and cocaine each month for more than a year.  Wilde was an ounce dealer of methamphetamine and Rios was his primary drug source.  Wilde purchased half ounce, one ounce, and two ounce quantities of methamphetamine at a time from Rios at least once per week .  At the time of her arrest Thibeault identified Ledesma as her drug source.  Thibeault purchased one ounce quantities of methamphetamine from Ledesma at least 10 times.  Gotschall was receiving one ounce to one-half pound of methamphetamine daily from Rios and reselling the methamphetamine for $1,000 to $1,300 per ounce.  Ruhland and Doty were methamphetamine dealers in the Sioux City, Iowa and were supplied by Ledesma and Rios.  Ruhland and Doty were receiving and re-selling multiple ounce quantities of methamphetamine.  Blank received ounce quantities of methamphetamine and broke it down to re-sell to others.  Rios was Blanks’ methamphetamine supplier.

Wilde was sentenced on January 31, 2018, to 120 months imprisonment; Doty was sentenced on April 27, 2018, to 91 months imprisonment; Blank was sentenced on May 3, 2018, to 90 months imprisonment; Gotschall was sentenced on June 14, 2018, to 120 months imprisonment; Ruhland was sentenced on June 22, 2018, to 84 months imprisonment; Rios and Thibeault were sentenced on June 25, 2018, Rios to 204 months imprisonment and Thibeault to 96 months imprisonment; and Ledesma was sentenced on July 23, 2018, to 180 months imprisonment.  Each were sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand.  Wilde, Gotschall, Rios and Ledesma must also each serve a 5-year term of supervised release after the prison term and Doty, Blank, Ruhland and Thibeault must also each serve a 4-year term of supervised release after the prison term.  There is no parole in the federal system.  Wilde, Ledesma, Rios, Doty, Blank, Gotschall, Thibeault, and Ruhland, were each ordered to pay a $100 special assessment.

Wilde, Ledesma, Rios, Doty, Blank, Goschall, Thibeault and Ruhland are each being held in the United States Marshal’s custody until they can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.   

The case file number is 17-4031.

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A man who was involved in heroin distribution was sentenced on July 25, 2018, to more than 27 years in federal prison.

Donald Johnson also known as “Scony”, age 52, most recently from Cedar Rapids, and originally from Chicago, Illinois, received the prison term after a March 12, 2018, guilty plea to a three-count Information charging two counts of distribution of heroin causing serious bodily injury, and one count of distribution of heroin causing death.  Johnson’s has been selling heroin in and around Cedar Rapids since at least 2015.  Johnson received gram quantities of heroin, and broke them into smaller quantities for resale purposes.  Johnson was fronted the drugs for resale on multiple occasions and had more than one supplier of heroin during his drug dealing activities.  Johnson’s heroin distribution resulted in two victims suffering overdoses.  Both received attention from emergency responders and were transported to the hospital where they each were revived by medical personnel.  One of these victims later died from a second overdose after Johnson sold her drugs.

Johnson was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  He was sentenced to 325 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Johnson is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation and the Drug Enforcement Administration Task Force. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-cr-97. 

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A Mexican man who illegally returned to the United States after being deported following a conviction for a drug felony offense was sentenced July 23, 2018, to 27 months in federal prison.

Leonides Osornio-Torres, age 45, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a May 7, 2018, guilty plea to one count of illegal reentry into the United States after having been convicted of an aggravated felony offense.

At the guilty plea, Osornio-Torres admitted he had previously been deported from the United States on July 22, 2011, and again on November 6, 2016.  He then illegally reentered the United States without the permission of the United States government.  Osornio-Torres was previously convicted on January 31, 2003, in the United States District Court for the Northern District of Iowa of distribution of approximately 5.5 pounds of pure methamphetamine and sentenced to 135 months’ imprisonment.  On February 23, 2018, Osornio-Torres was arrested in Black Hawk County for providing false identification information and public intoxication and was turned over to ICE on March 16, 2018.

Osornio-Torres was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Osornio-Torres was sentenced to 27 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Osornio-Torres is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-2013-LRR.

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A Mexican man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced July 23, 2018, to 27 months in federal prison.

Pablo Rosales-Aquino, age 37, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after an  April 19, 2018, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States.

At the guilty plea, Rosales-Aquino admitted he had previously been deported from the United States on April 15, 2009, and that he illegally reentered the United States without the permission of the United States government.  Rosales-Aquino was also given voluntary returns to Mexico seven times between March 1998 and January 2000.  Rosales-Aquino also admitted that on December 5, 2017, he used a fraudulent social security card and a fraudulent Green card when completing employment forms to obtain a job in Cedar Falls, Iowa.  The social security account number on the card used by Rosales-Aquino belonged to a United States citizen.  The account number on the Green card belonged to another person. 

Rosales-Aquino has prior convictions for operating a motor vehicle while intoxicated in Allamakee County in 2004, in Clayton County in 2005, and in Black Hawk County in 2007.  On February 1, 2018, Rosales-Aquino was arrested in Black Hawk County for driving without a license.  On March 2, 2018, immigration agents arrested Rosales-Aquino at his place of employment in Cedar Falls.

Rosales-Aquino was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Rosales-Aquino was sentenced to 27 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Rosales-Aquino is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

ourt file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-2010-LRR.

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A Guatemalan man who illegally returned to the United States after being deported was sentenced July 23, 2018, to over 2 months in federal prison.

Natanael Misrain Gomez-Tuy, age 29, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a May 31, 2018 guilty plea to one count of illegal reentry into the United States.

At the guilty plea, Gomez-Tuy admitted he had previously been deported from the United States on October 8, 2009.  He then illegally reentered the United States without the permission of the United States government.  On May 4, 2018, defendant was arrested by ICE following a traffic stop in Cedar Rapids.

Gomez-Tuy was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Gomez-Tuy was sentenced to 70 days’ imprisonment.  He must also serve a 1-year term of supervised release after the prison term.  There is no parole in the federal system.

Gomez-Tuy is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-49-LRR.

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SIOUX CITY, IA – The U.S. Attorney’s Office for the Northern District if Iowa and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, United States Attorney Pete Deegan announced.

“Sexual harassment in housing is often underreported, but it is an egregious violation of a person’s right to fair housing,” Deegan said.  “Through this roundtable, we hope to increase awareness of this problem and ensure there are resources available for victims of harassment.  No one should have to fear being harassed or assaulted by unscrupulous landlords or superintendents who abuse the power they have over tenants.”

The roundtable included representatives from over 20 different community organizations, including the Iowa Civil Rights Commission, Iowa Legal Aid, Sioux City Human Rights Commission, Iowa Attorney General’s Office, Sioux City Housing Authority, Siouxland Community Foundation, National Association of Social Workers, Sioux City Veterans Affairs, HUD-VA Supportive Housing, Goosmann Law Firm, Briar Cliff University, Western Iowa Tech Community College, Siouxland CARES, Sioux City BOOST, Emerging Women, Disability Resource Center of Siouxland, Hope Haven, Institute for Community Alliances, Sanford Center, Warming Shelter, Foodbank of Siouxland, Goodwill of the Great Plains, Siouxland District Health, and Mary J. Treglia Community House.  These organizations were invited because they often work with vulnerable populations who are most likely to become victims of sexual harassment in housing.

The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.

In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment in Housing Initiative, an effort to combat sexual harassment in housing.  On April 12, 2018, Attorney General Jeff Sessions announced the nationwide expansion of that initiative and the formation of a joint task force with the Department of Housing and Urban Development to address this issue. The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department’s enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.

The United States Attorney’s Office is working closely with the Civil Rights Division to spread the word here in the Northern District of Iowa about options to help victims who experience sexual harassment in housing.  Roundtable discussions like the one that U.S. Attorney Pete Deegan hosted today are one way to increase awareness and build strong partnerships in the community to combat this problem together.

Local community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division.  Not only should victims of sexual harassment be aware of the Justice Department’s enforcement efforts, but people or organizations they may tell about the sexual harassment should also know where to refer these victims to report the misconduct.  Local police departments or legal aid offices may be able to help victims, if the behavior is a crime or if there is an imminent eviction.  In addition, organizations should recommend that the victim report the harassment to the Civil Rights Division and the U.S. Attorney’s Office.

While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing, and the Fair Housing Act prohibits it.  The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.

Since January 2017, the Justice Department has filed or settled ten sexual harassment cases and recovered over $1.6 million for victims of sexual harassment in housing.  Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.

The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling 1-(844) 380-6178 or emailing fairhousing@usdoj.gov.

Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at /media/962046/dl?inline or 600 4th Street, Suite 670, Sioux City, IA 51101.

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SIOUX CITY, IA – The United States Attorney’s Office for the Northern District of Iowa and the Department of Justice’s Civil Rights Division will host a roundtable for community organizations to discuss the problem of sexual harassment in housing. The roundtable is designed to build collaboration among key partners in an effort to identify barriers to reporting sexual harassment in housing and increase awareness of the DOJ’s enforcement efforts.  The U.S. Attorney’s Office anticipates the involvement of more than 20 different community organizations.

United States Attorney Peter Deegan will be present and joined by Nancy Langworthy, a Senior Attorney for the DOJ’s Civil Rights Division in Washington, D.C. 

Event Details

When:       10:00AM-12:00PM, Friday, July 20, 2018

Where:     Sioux City Public Museum, 607 4th Street, Sioux City, IA 51101

This is a “pen and pad” opportunity for the press.  Photography permitted.  A press release will be provided and interview opportunities will be available. 

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A felon and unlawful user of methamphetamine who possessed a stolen firearm was sentenced on July 12, 2018, to more than 5 years in federal prison.

Gibbons, 30, from Sanborn, Iowa, received the prison term after an April 17, 2018, guilty plea to possession of a firearm by a felon and unlawful user of a controlled substance.  Gibbons had previously been convicted of two felonies out of O’Brien County, Iowa: (2015) possession of methamphetamine, third or subsequent offense, and (2009) deliver or conspire to deliver marijuana.

At a prior proceeding, the government presented evidence that on March 9, 2017, officers observed Gibbons, who was on state parole, driving a vehicle in which his sole passenger was a man suspected of burglarizing a residence and stealing seven firearms.  Hours later, officers approached Gibbons and questioned him regarding the suspected burglar.  During the questioning, officers observed Gibbons in possession of drug paraphernalia and subsequently informed him that he would be taken into custody.  Prior to leaving the residence, Gibbons, who was wearing only a t-shirt and jeans, declined to take his jackets in spite of the cold weather.  However, without warning, Gibbons bolted for the jackets, wedged himself in between the jackets and the officer standing nearby, and began fumbling through them.  It was during this time that the officer observed what later turned out to be a.45 caliber handgun.  The handgun was one of the seven stolen firearms. 

Gibbons was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Gibbons was sentenced to 63 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

Gibbons is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case is being prosecuted by Assistant United States Attorney Ajay J. Alexander and was investigated by the Osceola County Sheriff’s Office, Iowa Division of Narcotics Enforcement, Lyon County Sheriff’s Office, O’Brien County Sheriff’s Office, Spencer Police Department, Iowa Division of Criminal Investigations, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-CR-4042-LTS.

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Chase Daniel Zerba, age 20, from Coggon, Iowa, Tyler Michael Clemens, age 23, from Alburnett, Iowa, and Cameron Lee Klouda, age 21, from Coggon, Iowa, have each been charged with one count of conspiracy to distribute marijuana and using, carrying, brandishing, and discharging a firearm during a drug trafficking crime.  Zerba and Clemens have also been charged with being drug users in possession of a firearm.  The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.

Dillon Craig Beener, age 21, and Kordell Maurice Jones, age 19, both from Cedar Rapids, Iowa, have each been charged with one count of attempted robbery and using, carrying, and brandishing a firearm during a crime of violence.  The charges are contained in a Complaint unsealed on July 11, 2018, in United States District Court in Cedar Rapids. 

The Complaint alleges that, on February 1, 2017, law enforcement officers responded to an address in Coggon after receiving a 911 call regarding a shooting.  When officers arrived, they located an individual deceased in the front yard of the residence.  This individual had been shot at close range with a shotgun.

According to the allegations in the Complaint, prior to the shooting, the victim of the shooting along with Beener and Jones, left Cedar Rapids to travel to Coggon.  The complaint alleges that their intent was to meet Zerba and rob him of marijuana.  The three men brought a .40 caliber Hi-Point pistol with them to use during the robbery.  When they arrived at Zerba’s residence, Clemens, Klouda, and Zerba were all seated in a minivan parked in the driveway.  Beener approached the minivan and spoke with the three people in it.  Beener then returned to his car, and the victim, Beener, and Jones approached the minivan to meet with Zerba, Clemens, and Klouda.  The victim was in possession of the firearm and spoke briefly to the occupants of the minivan.  He then raised his firearm and demanded that Zerba provide them with the marijuana.  Zerba yelled “get it up” and one of the occupants of the minivan fired one round from a shotgun out the passenger side window into the victim’s head.

It is also alleged that during a search of the scene, police located $60 in the victim’s pocket.  A .40 caliber Hi-Point pistol was located near his body.  The pistol was loaded, with a round in the chamber and the safety off.  In the minivan, police located marijuana in a backpack in the left rear seat “stow and go” compartment.  The marijuana was packaged in six separate containers and totaled 386.91 grams of marijuana.  Police also located multiple jars of marijuana wax in this same backpack.

If convicted on all charges, Zerba, Clemens, and Klouda face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, at least $500,000 in fines, and at least five years of supervised release following any imprisonment.­ Beener and Jones face a mandatory minimum sentence of 7 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, and six years of supervised release following any imprisonment.­ 

Jones appeared on July 11, 2018, in federal court in Cedar Rapids and was held without bond pending a preliminary and detention hearing on July 16, 2018.  Zerba, Clemens, and Klouda appeared today in federal court in Cedar Rapids and were held without bond pending a detention hearing on July 16, 2018.

As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.

The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Linn County Sheriff’s Office.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file numbers are 18-cr-0059 and 18-mj-00237.

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A Mexican man who illegally returned to the United States after being deported six times previously was sentenced today to four months in federal prison.

Anastacio Zamarripa-Vidales, age 36, a citizen of Mexico illegally present in the United States and residing in Muscatine, Iowa, received the prison term after a May 23, 2018, guilty plea to one count of illegal reentry into the United States.

At the guilty plea, Zamarripa-Vidales admitted he had previously been deported from the United States on April 11, 2012 and again on September 14, 2012.  He then illegally reentered the United States without the permission of the United States government.  Zamarripa-Vidales was also given voluntary returns to Mexico four times within one week in September 1998.  In addition, on December 19, 2005, Zamarripa-Vidales was ordered to voluntarily depart from the United States but failed to do so.  On April 1, 2018, Zamarripa-Vidales was found by immigration officers following an arrest in Benton County for driving while license under suspension and possession of a controlled substance and on an outstanding warrant from 2014 for operating a motor vehicle while intoxicated, second offense.  Zamarripa-Vidales was previously convicted in February 2005 in Johnson County, Iowa, of operating a motor vehicle while intoxicated.

Zamarripa-Vidales was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand.  Zamarripa-Vidales was sentenced to four months’ imprisonment.  He must also serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.

Zamarripa-Vidales is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-39-LTS.

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Josh Harry Isler, age 55, from St. Ansgar, Iowa, pled guilty today in United States District Court in Cedar Rapids to one count of trade secret theft and one count of making a false statement or representation to the Federal Bureau of Investigation. ­ 

As part of his guilty plea, Isler admitted that during August 2013, while employed with DuPont, but after having accepted an offer of employment from a competitor, he stole trade secrets of DuPont.  In a plea agreement, Isler admitted that after he accepted employment with a competitor of DuPont in the ethanol fuel enzyme business, he transferred hundreds of DuPont’s electronic files to an external device.  Isler knew the files he downloaded contained proprietary information and trade secrets of DuPont.  Many of the files also related to DuPont customers who were also customers of the competitor or whose business the competitor was seeking.  Isler kept the files in his new job and also transferred some to his new employer.  Isler also admitted that when he was interviewed by the FBI in November 2013, he falsely denied he had downloaded files containing proprietary information.

Isler faces a maximum combined sentence of 15 years’ imprisonment, a fine of up to $500,000, and eight years of supervised release after any imprisonment.  Isler may also be ordered to pay restitution to DuPont.

Isler was released on bond.  Sentencing will be set at a later date.

The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-2032-LRR.                  

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Two Guatemalan brothers who share the same name and who each unlawfully used a fraudulent identification document were sentenced today to more than two months apiece in federal prison.

Jacinto Raymundo-Rivera, age 22, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a May 23, 2018 guilty plea to one count of unlawful use of an identification document.  At the guilty plea, Raymundo-Rivera, an illegal alien, admitted that on October 8, 2014, he used a fraudulent Green Card when completing employment forms to get a job in Cedar Rapids.  The social security account number and the Green Card number used by Raymundo-Rivera belonged to other people. 

Jacinto Raymundo-Rivera, age 28, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a May 24, 2018 guilty plea to one count of unlawful use of an identification document.  At the guilty plea, Raymundo-Rivera, an illegal alien, admitted that on September 21, 2015, he used a fraudulent Green Card when completing employment forms to get a job in Cedar Rapids.  The social security account number and the Green Card number used by Raymundo-Rivera belonged to other people. 

Both brothers were sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand.  Each brother was sentenced to 77 days imprisonment.  Each brother must also serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.       

Both brothers are being held in the United States Marshal’s custody until they can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file numbers are 18-CR-35-LTS and 18-CR-36-LTS.

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A man who possessed firearms while distributing cocaine was sentenced July 3, 2018, to 10 years in federal prison.

Jovon Naylor, 27, from Fort Dodge, Iowa, received the prison term after a January 25, 2018, guilty plea to conspiring to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and illegal possession of a firearm.

At the plea hearing, Naylor admitted to conspiring to distribute cocaine in the Fort Dodge area from 2016 through September 2016.  Naylor was involved in a number of controlled purchases of cocaine with law enforcement.  Naylor also admitted that when he distributed cocaine he possessed firearms during the drug deals.  Drug dealers typically carry firearms for protection of their drugs and drug proceeds.  Naylor further admitted to previously being convicted of possession of a firearm or offense weapon by a felon in the Iowa District Court for Webster County on April 13, 2012.  Federal law prohibits persons previously convicted of a felony from possessing firearms. 

Naylor was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Naylor was sentenced to 120 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.  Naylor is being held in the United States Marshal’s custody until he can be transported to a federal prison.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.  The case was prosecuted by Assistant United States Attorney Mikala M. Steenholdt and investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Dodge Police Department, DCI Criminalistics Laboratory, and the Webster County Sheriff’s Office. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 16-3049.  Follow us on Twitter @USAO_NDIA.

A Marion man who was previously convicted of felony domestic assault and who then assaulted his fiancée with a gun was sentenced June 28, 2018, to nine years in federal prison.

Gage Skola, age 28, from Marion, Iowa, received the prison term after an April 19, 2018 guilty plea to one count of being a felon in possession of a firearm.

Information at sentencing and in a previously filed criminal complaint showed that Skola got into an argument with his fiancée on February 10, 2018.  During the argument, Skola grabbed a gun and pistol-whipped her in the back of the head.  The fiancée fled to a neighbor’s house, but Skola followed her and forced his way into the house.  In the neighbor’s house, Skola displayed a large silver handgun and pointed it at his fiancée’s head.  The neighbor was able to get the gun from Skola, who then fled from the house.  Officers later recovered the silver handgun, a .44 caliber Magnum, which had previously been reported stolen.

Later that same night, Skola returned to the neighbor’s house.  Police returned to the house and arrested Skola.  During a subsequent search of Skola’s home, officers found five spent shell casings from a .44 caliber Magnum. 

Skola was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Skola was sentenced to 108 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Skola is being held in the United States Marshal’s custody until he can be transported to a federal prison.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The case is being prosecuted by Assistant United States Attorney Dan Chatham and investigated by the Marion Police Department.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file numbers are 18-cr-7 and 18-mj-48.

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Guilherme Alves De Melo (Alves), age 33, from Brazil, has been charged with one count of intimidating a flight crew member or attendant and lessening or interfering with their ability to perform their duties, in violation of federal law.­  The charge is contained in a Complaint filed June 26, 2018, in United States District Court in Cedar Rapids. 

­The Complaint alleges that, on or about June 23, 2018, Alves was a passenger on an international flight originating in Calgary, Canada and bound for Chicago, Illinois. It is further alleged that during the flight, Alves became disruptive and was told by a member of the flight crew that he needed to calm down. The flight attendant brought the disruptive conduct to the attention of the captain. About an hour before the flight was to arrive in Chicago, it is alleged that Alves again became disruptive and was scaring others passengers. Less than a minute later, Alves is alleged to have “lost it,” leading to some of the passengers needing to restrain him with zip ties provided by the flight crew. As a result, the flight was diverted to the Eastern Iowa Airport in Cedar Rapids after it had begun its final descent to Chicago. 

After the aircraft landed, the Cedar Rapids police removed Alves from the airplane.  However, Alves became loud and used expletives within sight and sound of other passengers and employees at the airport.  Alves was charged with disorderly conduct for these actions.  On June 24, 2018, defendant pleaded guilty to disorderly conduct and paid a $100 fine in Linn County District Court.

If convicted on the federal charge, Alves faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment.

Alves appeared in federal court on June 28, 2018.  At that time, the court scheduled a detention hearing and a preliminary hearing for 11:00 a.m. on Monday, July 2, 2018. Alves was ordered detained without bond pending the detention hearing.

As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.

The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and investigated by Homeland Security Investigations.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-mj-00223.

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A Waterloo man who ran from police while in possession of crack cocaine and who was involved in a large drug trafficking operation in Waterloo was convicted by a jury on June 27, 2018, after a two-day trial in federal court in Cedar Rapids.

Willie Junior Carter, age 45, was convicted of conspiracy to distribute cocaine and crack cocaine and possession of crack cocaine with the intent to distribute it.  The verdicts were returned following about six hours of jury deliberations.

The evidence at trial showed that Carter was intercepted on a wiretap investigation of the distribution of cocaine and crack cocaine in Waterloo during late 2016 and early 2017.  On January 12, 2017, the police stopped Carter as he was driving and he got out of his car and ran from police.  He was apprehended after he slipped and fell on the ice.  Officers found over 12 grams of crack cocaine in his pocket.  Evidence at trial showed that Carter was delivering large quantities of crack cocaine for other drug dealers.  Carter’s criminal history includes four prior convictions for drug trafficking offenses.  

Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared.  Carter will face a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and 10 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task

Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-cr-2045.

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CEDAR RAPIDS - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.  Thirty state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse. 

Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).

Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units. 

The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid related overdose.   

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions.  “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history.  This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

The United States Attorney for the Northern District of Iowa, Peter E. Deegan, Jr., lauded the enforcement actions.  “Our office will aggressively fight health care fraud and prosecute those individuals who contribute to the opioid epidemic.  We will seek out and prosecute those medical professionals who abuse the trust that society places in them by unlawfully diverting opioids and other controlled substances.”

“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar.  “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid and TRICARE for treatments that were medically unnecessary and often never provided.  In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  Because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims, aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system. 

United States Attorney Deegan announced two criminal prosecutions in the Northern District of Iowa.  The prosecutions are:

United States v. James Moorehead: James Moorehead, a registered nurse, was charged with three counts of acquiring a controlled substance by misrepresentation, fraud, deception, or subterfuge, and seven counts of false statements relating to health care matters.  The charges stem from Moorehead using the identities of multiple hospital patients with prescriptions for pain medications containing hydrocodone to dispense and divert the pills to his own personal use, and falsely indicating in Medicare beneficiaries’ medical records that those medications were administered to the patients. This case is being handled by AUSA Lyndie Freeman and was investigated by the Iowa Medicaid Fraud Control Unit.

United States v. Lacey Staveley: Lacey Staveley, also a nurse, was charged with one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge, and three counts of false statements relating to health care matters.  The charges stem from Staveley allegedly making false entries in the electronic medical records of a Cedar Falls, Iowa, nursing home with respect to two residents.  It is alleged that Staveley indicated she had administered oral tablets containing hydrocodone, which was paid for by Medicare, to the nursing home residents when in truth Staveley diverted those oral tablets for her own use.  This case is being handled by AUSA Tim Vavricek and was investigated by the Iowa Medicaid Fraud Control Unit.

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Additional documents related to this announcement will be available here: https://www.justice.gov/opa/documents-and-resources-june-28-2018.

This operation also highlights the great work being done by the Department of Justice’s Civil Division.  In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file numbers are 18-CR-2031-LRR and 18-CR-3021-LRR.

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Josh Harry Isler, age 55, from St. Ansgar, Iowa, has been charged with one count of trade secret theft and one count of making a false statement to the Federal Bureau of Investigation. ­ The charges are contained in an Information filed today in the United States District Court in Cedar Rapids. 

The Information alleges that, during at least August 2013, while employed by DuPont and after having accepted an offer of employment with a competitor, Isler stole trade secrets of DuPont.  After Isler accepted employment with a competitor of DuPont in the ethanol fuel enzyme business, he allegedly transferred hundreds of DuPont’s electronic files to an external storage device.  It is also alleged Isler knew the files he downloaded contained proprietary information and trade secrets of DuPont and many related to customers of DuPont who were also customers of the competitor or whose business was being sought by the competitor.  It is alleged Isler retained the files in his new job and transferred some to his new employer.

The Information also alleges that when he was interviewed by the FBI in November 2013, Isler falsely denied he had downloaded the files containing proprietary information of DuPont.

If convicted on both charges, Isler faces a maximum combined sentence of 15 years’ imprisonment, a fine of up to $500,000, and eight years of supervised release after any imprisonment.  Isler could also be ordered to pay restitution to DuPont.

Isler’s initial appearance in federal court in Cedar Rapids has been scheduled for 11:30 a.m. on July 5, 2018.

As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.

The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation.  Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 18-CR-2032. 

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A Guatemalan man who unlawfully used a fraudulent identification document was sentenced today to almost three months in federal prison.

Miguel Abel Raymundo-Perez, age 25, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a May 17, 2018 guilty plea to one count of unlawful use of identification documents.

At the guilty plea, Raymundo-Perez, an illegal alien, admitted that on May 24, 2014, he used a fraudulent Green Card when completing employment forms to get a job in Cedar Rapids.  The social security account number and the Green Card number used by Raymundo-Perez belonged to other people.  Raymundo-Perez also used the same fraudulent Green Card and social security account number when applying for work in Cedar Rapids in October 2014. 

Raymundo-Perez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Raymundo-Perez was sentenced to 84 days’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.  Raymundo-Perez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.  Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 18-CR-26-LRR.

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