Northern District of Iowa

Fadi Yassine, age 42, a Lebanese citizen, was arrested last evening as he disembarked an international flight arriving in New York City.

 

Yassine was arrested without incident on a warrant issued in the Northern District of Iowa on a criminal complaint charging him with conspiring to violate the Arms Export Control Act.

 

According to an affidavit filed in support of the criminal complaint, Yassine purchased guns in Lebanon that had been acquired in the United States and shipped to Lebanon by Ali Herz, Adam Al-Herz, Bassem Herz, and Sarah Majid Zeaiter. Yassine also purportedly communicated via Facebook from Lebanon with Bassem Herz in the United States to provide direction concerning which firearms to purchase. The affidavit also states that Yassine gave $30,000 cash to Ali Herz in Lebanon to be used to acquire more guns in the United States.

 

The Herzs and Zeaiter were each sentenced to terms of imprisonment in 2016 following their pleas of guilty to conspiring to violate the Arms Export Control Act and other offenses.

 

Yassine made his initial appearance in federal court in Brooklyn, New York, this afternoon. Yassine waived further proceedings in New York and was ordered to be transferred to Cedar Rapids in the Northern District of Iowa by the United States Marshals Service. A court appearance will be scheduled upon Yassine’s arrival in Cedar Rapids.

 

As with any criminal case, a charge is merely an accusation and the 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 Homeland Security Investigations, the Bureau of Alcohol Tobacco and Firearms, and the Federal Bureau of Investigation.

 

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-mj-00030.

 

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Kirk Baird, 42, from Sergeant Bluff, Iowa, has been charged with theft of mail matter by a postal employee.­ The charges are contained in an Indictment filed January 18, 2017, in United States District Court in Sioux City.

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The Indictment alleges that, between about August 2016 and October 20, 2016, Baird did embezzle letters, postal cards, and mail, and articles therein, entrusted to him, or which came into his possession intended to be conveyed by mail by the United States Postal Service, and stole, abstracted and removed from such letters, postal cards and mail, cash, gift cards and other items of value contained therein, with intent to convert such items to his own use.

 

“The agency considers the aforementioned allegations to be a very serious matter. When these types of allegations are made, OIG Special Agents vigorously investigate these matters, as was done in this instance” said Special Agent in Charge Joanne Yarbrough, of the Office of Inspector General (OIG) for the Postal Service’s Western Area Field Office.

 

If convicted, Baird faces a possible maximum sentence of 5 years’ imprisonment without the possibility of parole, a fine of up to $250,000, a mandatory special assessment of $100, and a term of supervised release of up to one year following any imprisonment.­

 

Baird’s first appearance in federal court in Sioux City for an arraignment is set for February 2, 2017.

 

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 Jamie Bowers and was investigated by the U.S. Postal Service Office of Inspector General

Office of Investigations.

 

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

The case file number is CR17-4001. Follow us on Twitter @USAO_NDIA.

Two men who used stolen credit card information to make fraudulent purchases in Iowa were sentenced to federal prison this week.

 

Maiko Aragon, age 24, from Miami, Florida, received more than three years in federal prison after pleading guilty to aggravated identity theft and conspiracy to use counterfeit credit cards. David Viamontes-Pando, age 23, also from Miami, Florida, received a one-year prison term after pleading guilty to the same offenses.

 

Evidence at the sentencing hearings showed that Aragon, Viamontes-Pando, and a third man, Henry Herrera, traveled to Iowa on multiple occasions in January 2016. The evidence showed that the men used stolen credit card information to make fraudulent purchases at stores in and around Cedar Rapids, Iowa. Testimony at the sentencing hearing also showed that Aragon installed a skimming device on a gas pump in order to steal credit card information.

 

Both Aragon and Viamontes-Pando were sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Aragon was sentenced to 45 months’ imprisonment and ordered to make $19,422.13 in restitution to victims. He must also serve a two-year term of supervised release after the prison term. Viamontes-Pando was sentenced to 12 months’ imprisonment and ordered to make $3,654.10 in restitution to victims. He must also serve a one-year term of supervised release after the prison term. Henry Herrera, who has pleaded guilty to the same offenses as Aragon and Viamontes-Pando, is set to be sentenced on February 22, 2017. There is no parole in the federal system.

 

In sentencing Aragon and Viamontes-Pando, Judge Strand commented that the offenses undermined public faith in financial institutions and were driven by greed. Judge Strand also increased Aragon’s sentence due to Aragon’s leadership role in the operation.

 

The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by Homeland Security Investigations and the Marion Police Department.

 

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

The case file number is 16-CR-24.

 

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The Abbey of Le Mars, Inc., and other individuals with financial interests in the Abbey’s operations, agreed to pay $100,000 to settle allegations they violated the False Claims Act by submitting or causing claims to be submitted to Medicaid when the care provided to nursing facility residents was so grossly substandard that the care was worthless and effectively without value.

 

The allegations relate to care provided for sixteen residents between January 2009 and February 2015. The government alleged that the care the Abbey provided was grossly substandard in multiple material ways:

 

1. providers failed to address skin conditions and fractures, leading to inadequate care and additional medical costs;

2. residents were subjected in the first instance to physical restraints and unnecessary medications rather than other types of interventions;

3. providers utilized anti-psychotic medications to numb or sedate residents so as to decrease residents’ needs; and

4. residents were not given adequate nourishment or bathing and toileting care, leading to infections and impactions necessitating emergency room visits.

 

The individuals signing the agreement include Leo Lenaghan, who owns the building where the Abbey operates; John Florina, Jr., who was a paid consultant to the Abbey; Janet Howe, the Abbey’s president; Don Butcher, who worked as the Abbey’s administrator; and the Abbey’s former director of nursing, Donna Stuhrenberg.

 

The False Claims Act settlement agreement only resolves government claims related to the alleged submission of claims for payment to Medicaid when the services provided were worthless and effectively without value. Other government claims are not released.

 

“Nursing facility residents deserve to be treated with dignity, respect, and attentive care sufficient to meet their medical needs and support their mental health,” said United States Attorney Kevin W. Techau. “This settlement demonstrates the commitment of the Northern District of Iowa United States Attorney’s Office to defending the integrity of the system and ensuring that taxpayer money is spent as Congress intended. We will continue to work with our federal and state partners to hold nursing facility owners, administrators, and employees across the district accountable if they are responsible for nursing facility residents being mistreated or if Medicaid or Medicare payments are wasted or misspent.”

 

The investigation and settlement are part of the Department of Justice’s Elder Abuse Initiative. In March 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of ten districts nationwide to launch regional Elder Justice Task Forces. The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The United States Attorney’s Office for the Northern District of Iowa has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect.

 

The investigation was led by the State of Iowa Medicaid Fraud Control Unit and conducted in conjunction with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only and there has been no determination of liability.

 

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CEDAR RAPIDS, IA –The U.S. Department of Justice partnered with Linn County and Cedar Rapids law enforcement and community agencies to host a forum today to discuss hate crimes and bias incidents targeted against the Arab, Muslim, Sikh, and South Asian Communities. A representative from the Department of Justice’s Community Relations Service (CRS) served as the moderator.

 

Pursuant to the Hate Crimes Protection Act, CRS is authorized to work with communities to help them develop the capacity to prevent and respond more effectively to violent hate crimes committed on the basis of actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. CRS is a remarkably unique federal component dedicated to assisting state and local units of government, private and public organizations, and community groups develop local capacity to prevent racial and ethnic tensions.

 

Joining in the forum were representatives from the Linn County Attorney and Sheriff’s Offices, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Cedar Rapids Civil Rights Commission, and leaders from the Arab, Muslim, Sikh, and South Asian communities in Cedar Rapids.

 

United States Attorney Kevin W. Techau expressed appreciation to the agencies involved and the community members attending for their willingness to discuss issues that communities across the state and country encounter. Techau stated, “The Department of Justice is committed to protecting the rights and freedoms of all people. Today’s meeting was an opportunity to discuss the topic of hate crimes in a safe environment. Hate crimes represent an attack not just on the individual victim but also on the victim's community. The impact is broad because these crimes send a message of hate and violence to entire ethnic and religious groups. The perpetrators of such crimes intend to create fear and spread hatred. We are committed to working with all communities to address the issue by working to prevent hate crimes as well as investigate and prosecute hate crimes whenever and wherever necessary.”

 

Assistant U.S. Attorney Tony Morfitt provided information on the federal statutes that criminalize various types of hate crimes. He covered the evolution of federal hate crime law and the recent expansion of the groups protected by federal hate crime laws.

 

Morfitt emphasized that the defining characteristic of a federal hate crime is that the actions must have been motivated by hate and that an individual cannot be found guilty federally unless the government proves the person acted “because of” the victim’s status as a member of a protected group. As an example, Morfitt pointed to the case of United States of America v. Randy Metcalf, where the government last year proved at trial that a Dubuque resident had assaulted an African American man in a local bar because of his race.

 

The Linn County Attorney’s Office presented information regarding Iowa hate crime laws. Representatives from CRS served as moderators and engaged the presenters and law enforcement and community leaders with questions from the audience.

 

To learn more about the Department of Justice’s Community Relations Service, visit: https://www.justice.gov/crs.

 

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An Iowa man who distributed pounds of ice methamphetamine was sentenced today to more than 24 years in federal prison.

 

Marcos Perez-Trevino, age 46, from Marshalltown, Iowa, received the prison term after an August 16, 2016, jury verdict finding him guilty of conspiring to distribute ice methamphetamine.

 

Evidence at trial showed Perez-Trevino had been involved in the distribution of ice methamphetamine in the Marshalltown area since at least 2014. As time passed, Perez-Trevino became involved in distributing higher quantities of ice methamphetamine. He arranged for multiple pounds of methamphetamine to be shipped from Mexico to Iowa. Once the drugs were in his possession in Iowa, Perez-Trevino distributed the methamphetamine to a network of individuals in multiple ounce quantities. Further, on August 12, 2015, police in Oklahoma stopped a car driven by Perez-Trevino. Police found and seized almost two pounds of methamphetamine from the car. He claimed he had found the methamphetamine at a nearby rest stop.

 

Perez-Trevino was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Perez-Trevino was sentenced to 292 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.

 

Perez-Trevino 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 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 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; 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 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.

 

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

The case file number is 15-CR-2037.

 

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An Iowa man who distributed significant quantities of ice methamphetamine was sentenced today to more than 20 years in federal prison.

 

Armando Castillo Valerio, 50, from Denison, Iowa, received the prison term after a June 22, 2016, jury verdict finding him guilty of conspiring to distribute methamphetamine.

 

Evidence at trial showed Valerio was responsible for distributing ice methamphetamine, a highly pure, crystalized form of methamphetamine, throughout Northern Iowa. Valerio received ice methamphetamine from multiple sources, including some who were located out of state. Once he obtained methamphetamine from his sources of supply, Valerio distributed it to a network of individuals. Multiple witnesses testified at trial to receiving methamphetamine from defendant.

 

Valerio was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Valerio was sentenced to 262 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.

 

Valerio 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 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 15-CR-2050.

 

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Donald Etheredge, age 51, of Cedar Rapids, Iowa, has been charged with receipt and possession of child pornography. The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.

 

The Indictment alleges that, between 2013 and 2015, Etheredge received child pornography and possessed it on a computer and a flash drive. The Indictment also alleges that Etheredge was convicted of shipment and transportation of child pornography in the Northern District of Iowa in 2004.

 

If convicted, Etheredge faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $750,000 fine, $15,300 in special assessments, and at least five years and up to life on supervised release following any imprisonment.

 

Etheredge appeared today in federal court in Cedar Rapids and was held without bond. Etheredge’s next appearance for trial is set for March 27, 2017.

 

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 Iowa Division of Criminal Investigation and 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 17-2.

 

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CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the Department of Justice’s Community Relations Service, the Iowa Department of Human Rights, the Anti-Defamation League, the Linn County Attorney’s and Sheriff’s Offices, the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Cedar Rapids Civil Rights Commission to host a forum designed to identify and address key issues related to reporting, investigating, prosecuting and preventing hate crimes against Arab, Muslim, Sikh, and South Asian Communities. The forum is designed to build collaboration among key partners in an effort to prevent and respond to bias incidents and hate crimes.

 

U.S. Attorney Kevin W. Techau will be present and joined by Darryck Dean, a DOJ Conciliation Specialist with the Community Relations Service located in Kansas City.

 

Mr. Dean was actively involved in community conciliation efforts following the incidents in Ferguson, Mo. A flyer announcing the forum is attached.

 

 

Event Details

 

When: Monday, January 30, 2017

 

Where: Cedar Rapids Public Library, Whipple Auditorium, 450 5th Avenue SE, Cedar Rapids, IA

 

Time: Starts at 1:00 p.m., ends at 4:00 p.m.

 

 

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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1-30-17_flyer.pdf

A man who produced child pornography pled guilty today in federal court in Cedar Rapids.

 

Skyler Wyatt, age 25, from Clarion, Iowa, was convicted of one count of sexual exploitation of a child. At the plea hearing, Wyatt admitted that, in 2016, he knowingly used a child to produce child pornography.

 

Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Wyatt remains in custody of the United States Marshal pending sentencing. Wyatt faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, $250,000 in fines, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.

 

This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Wright County Sheriff’s Office and the Webster County Sheriff’s Office.

 

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 16-3045.

 

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Meadowvale Dairy, LLC, has agreed to pay a civil penalty and take actions to prevent illegal discharges to Iowa streams in compliance with the Clean Water Act, officials of the U.S. Environmental Protection Agency and the U.S. Department of Justice announced today. Meadowvale Dairy operates multiple concentrated animal feeding operations in Rock Valley, Iowa.

 

Since 2002, the Iowa Department of Natural Resources has identified multiple violations of the dairy’s two National Pollutant Discharge Elimination System permits, which included fish kills in tributaries that lead to the Big Sioux River in 2004 and 2009. State and EPA inspections discovered evidence of additional unauthorized discharges of stormwater runoff into the tributaries in 2013 and 2014.

 

"This settlement sends a clear message that concentrated animal feeding operations must comply with Clean Water Act in order to prevent future discharges into our waters,” said John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The agreement requires remedial measures to reduce pollutants and protect aquatic ecosystems in the short term, as well as third party auditing to ensure long-term compliance with the terms of the consent decree and the controlling permits.”

 

“The vast majority of animal feeding operations adhere to the law and actively seek to be responsible stewards of the environment,” said Mark Hague, EPA Region 7 regional administrator. “The settlement today helps ensure a level playing field for all operators by holding those who violate environmental regulations accountable.”

 

U.S. Attorney for the Northern District of Iowa Kevin Techau said, “The scope of the injunctive relief and the size of the civil penalty are a clear signal to Iowa’s CAFOs about the importance of compliance. This settlement demonstrates the Department of Justice's commitment to enforcing the Clean Water Act as enacted by Congress.”

 

As outlined in the proposed consent decree lodged today in U.S. District Court for the Northern District of Iowa, in addition to civil penalties Meadowvale Dairy will be required to implement injunctive relief that includes short-term and long-term corrective measures to prevent unpermitted discharges of pollutants into tributaries. Injunctive relief includes:

 

• Retain an independent third party to develop and perform an audit, verifying compliance with the requirements of the proposed consent decree.

 

• Comply with all requirements of its National Pollutant Discharge Elimination System permits, including adherence to its Nutrient Management Plan. A Nutrient Management Plan typically outlines management and conservation practices to optimize productivity of the operation while conserving nutrients and protecting the environment. It may include practices such as appropriate manure and fertilizer storage and handling methods, managing the diet of the animals, and/or irrigation practices.

 

• Ensure all production areas are designed, constructed and operated to prevent unpermitted discharges with an exclusion for a 25-year, 24-hour storm event.

 

EPA estimates that changes made by Meadowvale required by this proposed settlement will result in a reduction of approximately 200,000 pounds of pollutants discharged annually. These reductions help to protect aquatic ecosystems, decrease sedimentation and improve overall water quality. The settlement also requires Meadowvale Dairy to pay $160,000 in civil penalties for alleged violations of the Clean Water Act related to mismanagement of animal wastes.

 

Meadowvale Dairy operates two NPDES-permitted large concentrated animal feeding operations, confining approximately 10,000 head of cattle on a combined 185 acres in Rock Valley. The operation includes four locations – North Site and South Site (both permitted), a calf barn/hut, and a satellite concrete manure storage structure.

 

The proposed consent decree is subject to a 30-day public comment period and approval by the federal court. Meadowvale Dairy would be required to pay the monetary penalty within 30 days of the court's approval of the settlement.

 

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

The case file number is 5:16-cv-4016-LTS. Follow us on Twitter @USAO_NDIA.

A Cedar Falls, Iowa man who knowingly stored hazardous waste at his now defunct Cedar Valley Electroplating facility in Cedar Falls without a permit authorizing the storage was sentenced on January 18, 2017, to two years in federal prison.

 

Richard Delp, 62, from Cedar Falls, Iowa, received the prison term after an August 3, 2016, guilty plea to a charge of unlawfully storing hazardous waste.

 

Evidence at the plea and sentencing hearing showed that from sometime in 2004 to about September 30, 2011, Delp owned and operated Cedar Valley Electroplating (CVE), an electroplating facility located at 5611 Westminster Drive, Cedar Falls, Black Hawk County, Iowa. Neither the defendant nor CVE had a permit to treat, store or dispose of hazardous waste under federal law.

 

CVE electroplated zinc onto carbon steel parts using a rack plating line (dip tank) and a hand-dip plating operation (barrel line). The various materials used in this process included raw steel, acids, zinc plating solution, chromate solutions (yellow and clear), acids and caustic soda. From sometime in 2004 to about September 30, 2011, CVE was a large quantity hazardous waste generator and produced more than 1,000 kilograms of hazardous waste per month.

 

On September 9, 2005, and September 20, 2010, civil inspectors of the United States Environmental Protection Agency (EPA) inspected CVE and found hazardous waste being handled and stored unlawfully. The inspectors told Delp of their findings.

 

Based on information obtained during the 2010 civil inspection, the EPA issued a Notice of Preliminary Finding to CVE for failing to perform hazardous waste determinations on the wastes stored in the facility. In a July 25, 2011, letter from Delp to the EPA, Delp acknowledged some of the wastes EPA had observed in the September 20, 2010 inspection were, in fact, hazardous wastes within the meaning of 42 U.S.C. §6928.

 

On or about September 30, 2011, Delp closed CVE, leaving numerous process chemicals and wastes inside and surrounding CVE’s building including those observed in the 2010 inspection.

 

In late 2011, Delp was ordered by the Cedar Falls Fire Department to move several white plastic tanks containing caustic or acid compounds from the outside and into the building so that they would not freeze and discharge into the environment. The tanks, when moved, left visible staining in the area where they had been stored outside, revealing there had already been discharges to the environment.

 

On February 27, 28, and 29, 2012, EPA executed a federal search warrant at CVE, discovering totes, tanks, drums, and other containers, some of which were leaking and unlabeled, and materials throughout the facility, giving off a strong acidic odor, containing hundreds of gallons of chromium, zinc, ferric sulfate, ferric chloride, sulfuric acid, hydrochloric acid, sodium hypochlorite, sodium hydroxide, and other items. Abandoned plating baths containing hundreds of gallons of caustic chemicals (e.g., hydrochloric acid, sulfuric acid, and sodium hydroxide), waste water tanks, corroded metal and concrete surfaces also were discovered during the search.

 

EPA collected chemical samples from ten 55-gallon drums, one tote, five tanks and four vats. Of these 20 samples, 18 exhibited the characteristic for corrosiveness and 9 exhibited the characteristic for toxicity and therefore constituted hazardous waste under federal law.

 

Following the search, EPA civil responders removed earth, containers, and interior portions of the property to ameliorate the contamination. The on-site clean-up work concluded on October 23, 2012. The total clean-up related costs exceeded $789,138.03.

 

Items stored at the CVE facility were hazardous wastes exhibiting the characteristics of corrosiveness and toxicity (specifically chromium), for purposes of the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. 6109 et seq.

 

“By refusing to comply with laws that ensure the safe handling and storage of hazardous chemicals, Delp put the public at serious risk,” said Justin Oesterreich, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Iowa. “EPA and its law enforcement partners are committed to protecting local communities by holding to account those who disregard the harm they pose to public health and the environment.”

 

“Mr. Delp unlawfully stored hazardous waste, resulting in the discharge of this waste into the environment and creating a risk to the safety of others and to the natural resources of Iowa,” said Kevin W. Techau, United States Attorney for the Northern District of Iowa. “We hope this case will encourage others to comply with laws designed to ensure hazardous wastes are properly stored and protect our environment.”

 

Delp was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Delp was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $$789,138.03 in restitution to the Environmental Protective Agency (EPA’s) Superfund. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.

 

Delp was released on bond previously set and is to surrender to the United States Marshal on February 13, 2017.

 

The case was investigated by the Environmental Protection Agency Criminal Investigation Division and is being prosecuted by Assistant United States Attorneys Forde Fairchild and Shawn S. Wehde.

 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR16-2022.

 

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Carlos Rodriguez, Michael Marcov, Stephanie Marcov, and Cody Richey, all from Dubuque or surrounding areas, have been charged with wire fraud, conspiracy, and money laundering. The charges are contained in a Complaint unsealed yesterday in United States District Court in Cedar Rapids.

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The Complaint alleges that, from January through September 2016, the four defendants participated in a scheme to defraud people throughout the country and that the scheme was primarily targeted at the elderly. The Complaint alleges that the participants in the fraud would call a person on the phone and tell that person that a relative was in jail. The caller would then ask the victim to wire money via Western Union or Money Gram as bail money to get the relative released. The Complaint alleges that, in fact, the money was being wired to various participants in the fraud who would pick up the wire transfers and then send the money overseas.

 

If convicted, each of the four defendants faces a possible maximum sentence of 45 years’ imprisonment, a $750,000 fine, $300 in special assessments, and a term of supervised release following any imprisonment.­

 

Rodriguez, Michael Marcov, and Stephanie Marcov appeared yesterday in federal court in Cedar Rapids. Rodriguez and Michael Marcov are being held without bond. Stephanie Marcov was released on conditions of release. The next court hearing in the case is set for 9:30 a.m. on January 17, 2017 for a detention and preliminary hearing.

 

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

 

The prosecution is part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.

 

The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by Homeland Security Investigations and the Dubuque Police Department.

 

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

The case file number is 17-MJ-04.

 

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A man who conspired to distribute methamphetamine was sentenced January 6, 2017, to more than 12 years in federal prison.

 

Kevin Babb, 55, from Sioux City, Iowa, received the prison term after a October 7, 2016, jury verdict finding him guilty of one count of conspiracy to distribute 50 grams or more of actual (pure) methamphetamine and three counts of distribution of methamphetamine.

 

Evidence at trial showed Babb was involved in a conspiracy that distributed methamphetamine in the Sioux City area from 2012 through 2014. On three separate occasions in April and July 2014, evidence showed that Babb provided methamphetamine during controlled drug transactions with law enforcement.

 

Babb was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Babb was sentenced to 150 months’ imprisonment. A special assessment of $400 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.

 

Babb 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 Nathan W. Nelson and 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 16-4041. Follow us on Twitter @USAO_NDIA.

A Jamaican man pled guilty today, in federal court in Cedar Rapids, to participating in a mail fraud scheme that defrauded an elderly Illinois couple. Ricardo Fredrick Smith a/k/a “Rickey Ricardo Smith” a/k/a “Ricky” a/k/a “Stinger”, 39, from St. James Parish, Jamaica, was convicted of one count of Mail Fraud. At the plea hearing, defendant admitted he participated in the scheme beginning no later than September 2015, and continuing through at least December 2015. Defendant admitted he recruited his ex-girlfriend, T.W., to participate in the scheme.

 

The prosecution is part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/

 

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal pending sentencing. Smith faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine or not more than twice the gross gain or twice the gross loss from the offenses, whichever is greater, $100 in special assessments, and 3 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.

 

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

The case file number is 16-CR-92-LRR.

 

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Ultimate Nursing Services of Iowa, Inc., and its president, Steven Tucker Anderson, have agreed to pay $1,000,000 to settle allegations they violated the False Claims Act.

 

The allegations relate to cost reports submitted by Ultimate Nursing for the period beginning January 1, 2011, and ending June 30, 2013. During this period, the company received payment for services to Medicaid beneficiaries in part through the submission of cost reports reflecting the costs associated with the provision of services and patient care. The government alleged that Ultimate Nursing’s cost reports for this period improperly resulted in payment for non-reimbursable travel and entertainment expenses and for non-reimbursable costs associated with services provided to Ultimate Nursing by other entities owned by Anderson or a family member.

 

“We will continue to use every resource available to ensure that all Iowa health care providers play by the same rules and that government money intended to pay for health care for Medicaid or Medicare beneficiaries is spent only for its intended purpose,” said United States Attorney Kevin W. Techau. “We also recognize the cooperation we received from the company and its president from the onset of this investigation and appreciate their willingness to work with us to address the issues raised by the investigation.”

 

The investigation was conducted in conjunction with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.

 

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Randy Patrie, age 44, from Charles City, Iowa, received a 20-year prison term after a September 6, 2013 guilty plea to possessing sawed-off shotguns and being a felon in possession of firearms.

 

Patrie had previously been sentenced to life imprisonment but, because of a subsequent Supreme Court decision in an unrelated case, his life sentence was overturned on appeal. As a result of the Supreme Court decision, at yesterday’s sentencing hearing, Patrie could no longer be sentenced to life imprisonment because the maximum potential sentence was 20 years’ imprisonment. The court sentenced him to that maximum sentence.

 

Patrie was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Patrie was sentenced to 240 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.

 

Patrie 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 Iowa Division of Criminal Investigation, the Chickasaw and Floyd County Sheriff’s Offices, and the Charles City Police Department.

 

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

The case file number is 13-CR-2016.

 

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A Palo business owner who provided false testimony before the federal grand jury was sentenced on January 4, 2017, to 10 months in federal prison.

 

Daniel L. Davidson, age 32, from Palo, Iowa, received the prison term after an August 25, 2016, guilty plea to one count of perjury.

 

In a plea agreement and at the plea hearing, Davidson admitted he provided false testimony regarding his financial transactions with another person that was material to an ongoing criminal investigation.

 

Davidson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Davidson was sentenced to 10 months’ imprisonment and fined $20,000. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.

 

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

 

The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by Internal Revenue Service-Criminal Investigations.

 

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

The case file number is 16-CR-00070-LRR.

 

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Jonathan Sebert, age 24, of Clarion, Iowa, has been charged with sexual exploitation of a child, receipt of child pornography, and possession of child pornography. The charges are contained in an Indictment unsealed on December 28, 2016, in United States District Court in Cedar Rapids.

 

The Indictment alleges that, between 2012 and 2016, Sebert produced, received, and possessed child pornography.

 

If convicted, Sebert faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 70 years’ imprisonment, a $750,000 fine, $15,300 in special assessments, and at least five years and up to life on supervised release following any imprisonment.

 

Sebert appeared for a detention hearing on December 30, 2016, in federal court in Cedar Rapids and was held without bond. Sebert’s next appearance for trial is set for February 27, 2017.

 

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 Wright County Sheriff’s Office and the Mason City 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 16-3054.

 

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A Waterloo woman who possessed heroin with intent to distribute near Morris Park in Waterloo, Iowa, was sentenced yesterday to 21 months in federal prison.

Michelle Hanson, age 28, from Waterloo, Iowa, received the prison term after an October 3, 2016, guilty plea to possession with intent to distribute heroin and fentanyl near Morris Park in Waterloo, Iowa on March 2, 2016.

At the guilty plea, Hanson admitted she sold heroin and fentanyl out of her Waterloo home, which was located near Morris Park.  A search of her home by the Tri-County Drug Enforcement Task Force resulted in the seizure of over 12 grams of heroin and six patches containing fentanyl. 

Hanson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Hanson was sentenced to 21 months’ imprisonment and a special assessment of $100 was imposed.  She must also serve a 6-year term of supervised release after the prison term.  There is no parole in the federal system.  Hanson is being held in the United States Marshal’s custody until she can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated as part of the National Heroin Initiative of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Tri-County Drug Task Force, which is 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 16-CR-2036.  Follow us on Twitter @USAO_NDIA.

A woman who stole others’ identities, filed false tax returns seeking to get more than $250,000 in fraudulent tax refunds, and lied in order to get government housing assistance was sentenced today to seven years in federal prison.

Kaeisha Robinson, age 38, from Phoenix, Arizona, and formerly of Maquoketa and Dubuque, Iowa, received the prison term after a September 2, 2016, guilty plea to one count of aggravated identity theft, one count of theft of government property, and one count of making false statements to a government agency.

In a plea agreement, Robinson admitted that from May 2011 to February 2013, she filed numerous false and fraudulent tax returns.  She further admitted that she filed these returns in both her own name and the names of others, some of whom were unaware that Robinson was using their identities to file fraudulent returns.  Robinson also admitted that as a result of these fraudulent returns, she received tax refunds from the Internal Revenue Service to which she was not entitled and stole money from the government.  Finally, Robinson admitted that from October 2011 through July 2013, she lied on forms she completed in order to receive Section 8 housing assistance by failing to report all of her income.  As a result, Robinson received $12,143 in housing assistance to which she would not have been entitled had she been truthful.

Robinson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Robinson was sentenced to 84 months’ imprisonment.  A special assessment of $300 was imposed, and she was ordered to make $336,380 in restitution to the Internal Revenue Service and $12,143 in restitution to the Eastern Iowa Regional Housing Authority.  She must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

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

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service-Criminal Investigations, United States Postal Inspection Service-Criminal Investigations, and the Department of Housing and Urban Development Office of the Inspector General. 

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

The case file number is 15-CR-00071.

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Two felons from Dubuque, who stole firearms in a burglary in March 2016, were each sentenced last week to federal prison.  Arthur Robledo, age 25, received a 57 month sentence after his June 30, 2016, guilty plea to one count of possession of firearms by a felon.  His co-defendant, Adam Becker, also 25 years old, received a 71 month sentence after a July 5, 2016, guilty plea to the same crime.  Robledo and Becker were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  In their respective plea agreements, and at sentencing hearings, Robledo and Becker each admitted they stole firearms in a burglary in Dubuque, Iowa, on March 29, 2016.

Chief Judge Reade found Robledo was affiliated with the “Latin Kings” gang, posed a danger to the community, and was at a high risk to recidivate.  At his sentencing hearing, Chief Judge Reade also found that, on the night of Christmas 2014, following an incident at a local bar, Robledo was intoxicated and acted in a “totally outrageous” manner by attempting to bite an East Dubuque, Illinois police officer, trying to spit blood on an officer, and threatening to have a number of law enforcement officers and their families beheaded.  In the 2014 incident, Robledo bragged that his family were members of the Los Zetas Mexican drug cartel and referenced the well-publicized assassinations of police officers in another state.  Chief Judge Reade observed Robledo’s criminal activity was “escalating”, as the 2016 burglary followed the 2014 incident and another burglary conviction in Iowa.

Chief Judge Reade found Becker had a “very concerning criminal history”, which included multiple burglary convictions involving firearms.  Judge Reade characterized Becker as a “serial burglar” at “extremely high risk to recidivate.”  She indicated Becker had committed “the same offense over and over again” yet had received leniency in state court.

A special assessment of $100 was imposed in each case.  Robledo and Becker must also each serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Robledo and Becker are 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 Attorneys Tim Vavricek and Lisa Williams and investigated by the Dubuque Police Department. 

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

The case file number is 16-CR-1015-LRR.

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A man who produced and possessed child pornography pled guilty on December 22, 2016, in federal court in Cedar Rapids.

Michael Bordman, age 23, from Cedar Rapids, Iowa, was convicted of one count of sexual exploitation of a child and one count of possession of child pornography.  At the plea hearing, Bordman admitted that, between 2015 and 2016, he knowingly used a child to produce child pornography.  He also admitted that he possessed child pornography on a cell phone.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Bordman remains in custody of the United States Marshal pending sentencing.  Bordman faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, $500,000 in fines, $10,200 in special assessments, and supervised release for 5 years to life following any imprisonment.

This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department, the Iowa Division of Criminal Investigation, and Homeland Security Investigations.

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 16-81.

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A man who received child pornography was sentenced December 20, 2016 to 20 years in federal prison.

Toby Donovan, age 39, from Cascade, Iowa, received the sentence after a July 25, 2016 guilty plea to one count of receipt of child pornography.  At the plea hearing, Donovan admitted that, between 2012 and 2013, he knowingly used the Internet to receive child pornography.  In addition, defendant has a 2014 conviction in Dubuque County for enticement of a minor.

Donovan was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Donovan was sentenced to 240 months’ imprisonment.  A special assessment of $100 was imposed, and he must also serve a 10-year term of supervised release.  He must comply with all sex offender registration and public notification requirements.

This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque County Sheriff’s Office, the Cedar Rapids Police Department, and the Cascade 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 14-1012.

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A Central City Woman who stole her grandfather’s identity to obtain credit cards in his name and make over $27,000 in purchases was sentenced today to 14 months in federal prison.

Jessica Lynn Roloson, 41, received the prison term after an August 11, 2016 guilty plea to one count of Wire Fraud.  In a plea agreement, Roloson admitted that, from October 2015 through January 2016, knowing her grandfather’s social security number and date of birth, and living in his former home, Roloson falsely assumed her grandfather’s identity and applied to various credit card companies for accounts under his name, social security number, and former address.  The credit card companies issued Roloson credit cards in her grandfather’s name.  Roloson used the credit cards on the Internet to fraudulently purchase goods for her own benefit and for the benefit of others.  She also made purchases in local stores.

For example, on or about October 29, 2015, Roloson used her grandfather’s name and Social Security number without his permission on an application for a credit card.  Then, on or about November 5, 2015, using one of the cards, and using the name of “JLynn Roloson,” defendant caused American Express to wire $205.95 to Victoria’s Secret in Cedar Rapids, Iowa.  Defendant did so to obtain property for her personal use, including but not limited to “Pink Yoga Pants,” a “Pink Knit Top,” and a “Bombshell Push Up Brasierre.”  As a part of her plea agreement, Roloson agreed to abandon a number of other items that she purchased through her scheme, including a dog kennel, two Dallas Cowboys Zip Up Jackets, two 16 GB iPad mini tablet computers, eyeglasses, a white-and-grey Siberian Husky puppy, a Black Frigidaire refrigerator with side-by-side freezer, a black smooth surface Frigidaire stove, four black office chairs with wheels, a black Frigidaire microware, a black Frigidaire dishwasher, a kitchen sink, an L-shaped desk, a backyard grill, two HP laptop computers with accessories, miscellaneous kitchen utensils, plates, and platters, a pink “selfie stick”, two Bissell cleaners, four Goodyear all-season tires, and a black wire dog kennel.

Evidence at sentencing established that defendant’s grandfather is over 90 years old.  He is a WWII veteran, having served under General George S. Patton’s Third Army in the European Theatre.  At the time defendant perpetrated her scheme, her grandfather required the use of wheelchair and resided in the Iowa Veteran’s Home in Marshalltown, Iowa.  Defendant’s actions adversely affected her grandfather’s credit rating and caused emotional stress upon his elderly wife. 

Roloson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  During the sentencing, Judge Reade found that Roloson’s scheme had required significant planning and highlighted the fact that Roloson had yet to pay any restitution.  Roloson was sentenced to 14 months’ imprisonment.  A special assessment of $100 was imposed, and she was ordered to make over $27,000 in restitution to various credit card companies and merchants.  She must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

The prosecution of Roloson is part of the Department of Justice’s Elder Abuse Initiative.  In March 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of ten districts nationwide to launch regional Elder Justice Task Forces.  The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative.  The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues.  It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries.  The United States Attorney’s Office for the Northern District of Iowa has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect. 

Roloson was released on the bond previously set and is to surrender to the United States Marshal on January 9, 2017, at 10:00 a.m.

The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Linn County Sheriff’s Office.

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

The case file number is 16-CR-43-LRR.

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A Forest City, Iowa businessman was sentenced to 13 months in prison yesterday in federal court for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kevin W. Techau for the Northern District of Iowa.

Darrell Smith, 60, was the president and general partner of Energae, which was a minority investor in Permeate Refining LLC., an ethanol-production business in Hopkinton, Iowa.  In his position at Energae, Smith had significant control over the finances of Permeate and was responsible for paying over to the Internal Revenue Service (IRS) the employment tax on behalf of Permeate’s employees.  From the first quarter of 2011 through the third quarter of 2012, Smith failed to pay over $502,863.  After Smith discovered that a subordinate employee had made some payments to the IRS, Smith stopped that employee from making further payments.

On June 22, Smith pleaded guilty to one count of failing to pay employment taxes. In addition to the term of prison imposed, Smith was also ordered to serve two years of supervised release.

“Willful failure to comply with employment tax obligations is a crime,” said Principal Deputy Assistant Attorney General Ciraolo.  “Darrell Smith’s jail sentence sends the clear message that the Department will work to ensure that withholdings due to the United States are in fact paid to the Treasury and that honest employers are given the opportunity to compete on a level playing field.”

“Mr. Smith’s failure to pay employment taxes for over a year was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Techau.  “Our system and our citizens depend upon employers like Mr. Smith to be honest and pay what they owe in employment taxes.  This sentence shows that failing to do so is criminal and there will be consequences.”

“IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion.  It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.

Smith’s co-defendant Randy Less pleaded guilty on June 14 to failing to pay employment taxes and violating the Clean Water Act.  Sentencing is scheduled for March 23, 2017.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Techau thanked special agents of IRS-Criminal Investigation, FBI, the U.S. Postal Inspection Service and the U.S. Environmental Protection Agency, who conducted the investigation, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.

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

The case file number is 16-CR-2002.

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A Forest City, Iowa businessman was sentenced to 13 months in prison yesterday in federal court for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kevin W. Techau for the Northern District of Iowa.

Darrell Smith, 60, was the president and general partner of Energae, which was a minority investor in Permeate Refining LLC., an ethanol-production business in Hopkinton, Iowa.  In his position at Energae, Smith had significant control over the finances of Permeate and was responsible for paying over to the Internal Revenue Service (IRS) the employment tax on behalf of Permeate’s employees.  From the first quarter of 2011 through the third quarter of 2012, Smith failed to pay over $502,863.  After Smith discovered that a subordinate employee had made some payments to the IRS, Smith stopped that employee from making further payments.

On June 22, Smith pleaded guilty to one count of failing to pay employment taxes. In addition to the term of prison imposed, Smith was also ordered to serve two years of supervised release.

“Willful failure to comply with employment tax obligations is a crime,” said Principal Deputy Assistant Attorney General Ciraolo.  “Darrell Smith’s jail sentence sends the clear message that the Department will work to ensure that withholdings due to the United States are in fact paid to the Treasury and that honest employers are given the opportunity to compete on a level playing field.”

“Mr. Smith’s failure to pay employment taxes for over a year was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Techau.  “Our system and our citizens depend upon employers like Mr. Smith to be honest and pay what they owe in employment taxes.  This sentence shows that failing to do so is criminal and there will be consequences.”

Smith’s co-defendant Randy Less pleaded guilty on June 14 to failing to pay employment taxes and violating the Clean Water Act.  Sentencing is scheduled for March 23, 2017.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Techau thanked special agents of IRS-Criminal Investigation, FBI, the U.S. Postal Inspection Service and the U.S. Environmental Protection Agency, who conducted the investigation, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

  

Five men and three women responsible for distributing hundreds of pounds of methamphetamine were sentenced earlier this week to various federal prison terms.

Donita Urban, 47, from Evansdale, Iowa, received a 98-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Scott Mathews, 52, from Marshalltown, Iowa, received a 70-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Brian Swartz, 49, from Waterloo, Iowa, received a 132-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Rogelio Avalos-Sanchez, 23, from Marshalltown, Iowa, received a 59-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Jennifer Mares-Flores, 21, from Marshalltown, Iowa, received a 78-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Miguel Mendoza, 26, from Hampton, Iowa, received a 78-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Alvaro Hernandez, 31, from Marshalltown, Iowa, received a 113-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Frances Gasca, 26, from Lompoc, California, received a 103-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.

Evidence at the guilty pleas and other court proceedings showed that in the Spring of 2013, Mario Murillo Mora began building a drug trafficking organization responsible for distributing multiple pounds of ice methamphetamine, a highly pure, crystalized form of methamphetamine, throughout Northern Iowa.  The various members of the organization distributed at least 250 pounds of ice methamphetamine.  Murillo Mora recruited various individuals, including some of the individuals sentenced this week, to assist with transporting, storing, and distributing ice methamphetamine, as well as collecting money and wiring drug proceeds back to the sources of the ice methamphetamine.  Other individuals obtained ice methamphetamine from Murillo Mora in pound to multiple pound quantities for redistribution to a network of retail level customers.  The organization brought the methamphetamine to Marshalltown from Mexico and California concealed in vehicles.  Once in Marshalltown, the methamphetamine was broken down and repackaged for further distribution.   

All defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  A special assessment of $100 was imposed on all defendants and they must also each serve a three to five-year term of supervised release after the prison term.  There is no parole in the federal system.

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 15-cr-2037.

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A Cedar Rapids man who illegally possessed multiple firearms was sentenced this week to 14 years in federal prison.

Christopher McGee, 22, from Cedar Rapids, Iowa, received the prison term after pleading guilty to two counts of possessing a firearm as a felon.  As part of his August 2016 guilty plea, defendant admitted that he knowingly possessed two firearms after having sustained a felony conviction in 2014.

Evidence at this week’s sentencing hearing showed that defendant’s offense involved at least three firearms, that he possessed a firearm in connection with the felony offense of assault while displaying a dangerous weapon, and that in May 2016, he led officers on a high speed chase when they attempted to arrest him.  While leading officers on the high speed chase, defendant was carrying a semiautomatic pistol with a high capacity magazine.

McGee was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand.  McGee was sentenced to 168 months’ imprisonment.  He must also serve a 2-year term of supervised release after the prison term.  In explaining the sentence, Judge Strand cited McGee’s history of weapons offense, his history of eluding police, and the need to protect the public from further crimes.  There is no parole in the federal system.  McGee 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 Ravi T. Narayan and investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation (FBI) Safe Streets Task Force.  This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 16-CR-52.

Last week, three Cedar County men were sentenced to federal prison on methamphetamine manufacturing charges.  Telly Ranzenberger and Brian Hagen were sentenced to 60 months’ imprisonment and 48 months’ imprisonment, respectively.  In a separate case, Tracey McGhghy was sentenced to 90 months’ imprisonment

Hagen, 43, and Ranzenberger, 42, from Lowden, Iowa, and McGhghy, 48, from Manley, Iowa, received the prison terms after pleading guilty to conspiring to manufacture methamphetamine.  At separate plea hearings, each defendant admitted that he entered into a conspiracy to manufacture methamphetamine.

Ranzenberger and Hagen were sentenced in Cedar Rapids by United States District Court Senior Judge Mark W. Bennett.  McGhghy was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand.  Each defendant was ordered to serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

The cases were prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by the Cedar County Sheriff’s Office.  The Cedar County Sheriff’s Office received assistance from the Muscatine County Drug Task Force, the Iowa State Patrol, the Iowa Division of Narcotics Enforcement, and the Johnson County Drug Task Force.

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

The case file numbers are 16-CR-42 and 16-CR-60

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CEDAR RAPIDS – The United States Attorney’s Office for the Northern District of Iowa announced today that the Anti-Defamation League (ADL) honored law enforcement heroes for major successes in the fight against domestic and international terrorism, genocide, and war crimes at the seventh annual presentation of the ADL SHIELD Awards at the end of September.  The ceremony was held at the National Press Club in Washington D.C.  Assistant United States Attorneys Richard Murphy and Ravi Narayan from the Northern District of Iowa were honored at the ceremony, along with Homeland Security Investigations Special Agents Michael Fischels, Andrew Lund, and Frank Hunter; a representative of the U.S. Immigration and Customs Enforcement Human Rights Violators and War Crimes Center; and Homeland Security legal counsel.

The SHIELD Awards annually recognize law enforcement for major achievements in cases related to ADL’s mission and work, including the fight against hate crimes and terrorism and protecting civil rights.  It has become one of the premier events honoring law enforcement heroes in the nation.

The award name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.

“The SHIELD Awards give us an opportunity to publicly recognize some of law enforcement’s greatest successes,” said Elise Jarvis, ADL’s Associate Director for Law Enforcement Outreach and Communal Security.   “The Awards are a way for us to honor and express our appreciation to those who have protected our nation and its values, and guarded our lives and freedoms.”

United States Attorney Kevin W. Techau stated, “I am very pleased to congratulate Rich and Ravi and the federal partners involved in this significant case.  This recognition stems from multiple federal partners working together to ensure justice was achieved.”

The recipients were honored for the investigation and successful prosecution of Gervais (Ken) Ngombwa, formerly of Rwanda and now of Cedar Rapids.  Ngombwa was convicted by a jury of naturalization fraud and conspiracy in the United States District Court for the Northern District of Iowa earlier this year. 

Evidence presented at trial showed Ngombwa fled Rwanda with relatives during the Rwandan genocide in 1994.  The evidence also showed Ngombwa knowingly made several material false statements to procure entry into the United States as a refugee from Rwanda in 1998.  Notably, Ngombwa falsely claimed to be the brother of Faustin Twagiramungu, a former Prime Minister of Rwanda, who lives in exile in Belgium. 

In evidentiary hearings in advance of formal imposition of sentence, the United States presented the testimony of multiple witnesses, including agents from the Department of Homeland Security who conducted extensive investigation in Rwanda.  The testimony included evidence about the 1994 Rwandan genocide, in which hundreds of thousands of people from the Tutsi ethnic group were killed.  The evidence showed that Ngombwa was charged and convicted in two local “gacaca” courts in Rwanda for his involvement in the genocide.  Ngombwa was implicated by numerous witnesses interviewed in Rwanda as a political leader in his community who actively directed and participated in the commission of genocidal acts.  Ngombwa was also named in an Indictment brought in 2010 against Jean Uwinkindi by the United Nations Joint Criminal Tribunal for Rwanda, as a co-participant in a “joint criminal enterprise whose common purpose was the commission of genocide against the Tutsi racial or ethnic group and persons identified as Tutsi or presumed to support the Tutsi[.]”  Uwinkindi was convicted of genocide and sentenced to life imprisonment in December 2015. 

Ngombwa’s U.S. citizenship has been revoked and he faces a possible maximum sentence of 20 years in prison and eventual removal to Rwanda to face further incarceration and prosecution there.  A date for formal imposition of sentence has not been set.

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Two local police officers are being honored this week by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for their commitment to reducing drug abuse in their communities.  The recipients of the 2016 Enrique S. Camarena Award are Officer Al Fear of the Cedar Rapids Police Department and Officer Dustin Lindaman of the Waterloo Police Department.      

The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords.  This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.

This year’s award recipients have gone above and beyond the call of duty in pursuit of a drug-free community:

• Through his commitment to reducing drug abuse within both the Northern and Southern Districts of Iowa, Officer Al Fear is a worthy recipient of this distinguished award.  Over the past year, Officer Fear developed a robust heroin prevention initiative aimed at educating addicts, health care professionals, educators, students, law enforcement officers, and the general public on the dangers of opioid and heroin abuse.  Officer Fear is passionate about preventing the spread of opioid and heroin addiction and making a difference in the lives of individuals addicted to opioids and heroin.

 

• Through his commitment to educating middle school students and their families about the dangers of drug abuse, Officer Dustin Lindaman is a worthy recipient of this distinguished award.  In his position as School Resource Officer for Waterloo Central Middle School, Officer Lindaman has the unique opportunity to build positive relationships with students, to serve as a role model, and to have important conversations with students at a critical time in their development.  Through these conversations, Officer Lindaman emphasizes the detrimental impact that drug abuse has on the student and his or her family.

 

Kevin W. Techau, United States Attorney for the Northern District of Iowa commented on this year’s award recipients, stating, “The communities these officers serve are safer because of their hard work and dedication.  They richly deserve the honor of receiving the Enrique S. Camarena award.  Officer Lindaman’s work highlights the enormous value of the School Resource Officer program, which places police officers in schools around the state working on drug abuse prevention while promoting school safety.  Through his tireless efforts, Officer Lindaman has established a high level of trust with Central students, serving as both a role model to students and an important source of education and information about the dangers of drug abuse.  Officer Fear, in conjunction with both law enforcement and community efforts, has led a strong effort to prevent and combat the prescription drug abuse and heroin epidemic across Easten Iowa.”

Darin T. Thimmesch, the Assistant Special Agent in Charge for the DEA also commented on this year’s award, stating, “The DEA is committed to working with our law enforcement partners at all levels to reduce the availability and abuse of illicit drugs in the communities we serve.  We are honored to be a part of this distinguished award presentation in memory of fallen DEA Special Agent Enrique S. Camarena.  Special Agent Camerena gave his life fighting against the powerful drug cartels in Mexico while trying to protect the country he served from evils of drug distribution and abuse.  This award exemplifies the outstanding investigative efforts of these law enforcement officers in disrupting the illegal activities of the drug trafficking organizations operating in and around the Iowa City and Cedar Rapids communities, as well as preventing the further distribution of these highly addictive, deadly drugs.”

The Enrique S. Camarena Award is presented each year during Red Ribbon Week.  Red Ribbon Week is an alcohol, tobacco, and drug prevention awareness campaign observed annually in the United States. 

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Bassem Afif Herz, age 31, from Cedar Rapids, Iowa, was sentenced today following his pleas of guilty to various charges related to a scheme to illegally export hundreds of firearms to Lebanon. 

Herz previously pleaded guilty to one count of conspiring to deal in firearms without a license and to illegally ship firearms in interstate and foreign commerce; one count of conspiracy to commit money laundering; and one count of violating the Arms Export Control Act. 

The defendant was sentenced by Linda R. Reade, Chief Judge, United States District Court for the Northern District of Iowa, in Cedar Rapids, Iowa, following three prior hearings at which the Court received evidence concerning the sentencing issues.

Herz was sentenced to serve 97 months’ imprisonment, to be followed by a 3- year term of supervised release.  Herz was ordered to forfeit $48,575 in proceeds of criminal activity.  The forfeiture order was made joint and several with the other defendants in the case.  

In sentencing Herz, the Court found the aggravating factors included the defendant’s false testimony that on the day of his arrest he had been beaten up by police officers who also threw his infant son to the floor.  The court also noted the large number of guns involved in the schemes, the fact that military style assault rifles were involved, and that some of the guns were shipped to and sold in southern Lebanon in an area controlled by Hezbollah. 

Ali Afif Al Herz, the brother of Bassem Afif Herz, was previously sentenced to serve 342 months’ imprisonment.

Adam Al Herz, the son of Ali Afif Al Herz, was sentenced to serve 240 months’ imprisonment, to be followed by a three-year term of supervised release. 

Defendant and his relatives were charged following an investigation triggered in early 2014 by a report from a firearms dealer concerning suspicious firearms transactions conducted by the group. 

The initial investigation led to the March 2015 seizure of 53 guns and thousands of rounds of ammunition concealed inside Bobcat skid loaders packed inside a shipping container at the Norfolk, Virginia seaport.  The container was destined for Lebanon.  Subsequent investigation led to the May 2015 seizure of a second shipping container in Cedar Rapids, which was also destined for Lebanon.  Ninety-nine guns and thousands more rounds of ammunition were found concealed inside Bobcat skid loaders packed inside the second container.  Further investigation disclosed the group had previously sent two similar shipments to Lebanon in March and August 2014.  Each of the containers had been loaded and shipped from Midamar Corporation in Cedar Rapids.

The cases were prosecuted by Assistant United States Attorney Richard L. Murphy and were investigated by Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, Federal Bureau of Investigation, and U.S. Customs and Border Protection, with assistance from the Diplomatic Security Service, United States Marshals Service, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Iowa Bureau of Investigation and Identity Protection, Iowa Department of Inspections and Appeals, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Linn County Sheriff’s Office, Vinton Police Department, University of Iowa Police Department, Iowa City Police Department, Cedar Rapids Police Department, Marion Police Department, and Hiawatha Police Department.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-00054-LRR.

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Lifepoint Dental Group, LLC, and its owners, Aaron Blass, Angelina Blass, D.D.S., Mindy Richtsmeier, D.D.S., and Brad Richtsmeier, D.D.S., have agreed to pay more than $300,000 to settle allegations that they violated the False Claims Act by submitting claims for dental procedures, including scalings and root planings, that were either medically unnecessary or did not happen.  The government’s allegations concern claims submitted by Lifepoint’s Cedar Rapids location between April 1, 2015, and October 1, 2015. 

Allegations of wrongdoing were made against the clinic in a qui tam, or whistleblower, lawsuit filed by two former Lifepoint employees.  That lawsuit was brought under the False Claims Act, which punishes violators who submit false claims to the government or who knowingly attempt to avoid an obligation to repay federal funds.  The whistleblower provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery.  The former employees who filed this lawsuit will receive a share of the total amount recovered.   

“This settlement demonstrates our office’s continued commitment to ensuring all providers play by the rules and beneficiaries receive the quality of care to which they are entitled,” said United States Attorney Kevin W. Techau.  “We are also proud of our cooperation in this matter with federal and state agencies, the citizens who spoke up and filed a qui tam lawsuit alleging wrongdoing, and the clinic and its owners, who cooperated throughout the investigation.  We encourage anyone aware of fraud against the government to speak up and work with us to make the system work for providers, taxpayers, and beneficiaries.” 

The investigation was led by the State of Iowa Medicaid Fraud Control Unit and conducted jointly with the Health and Human Services Office of Inspector General.  The claims settled by this agreement are allegations only, and there has been no determination of liability.

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

The case file number is 1:16-cv-00049-EJM.

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A Cedar Rapids man who was found in possession of marijuana and a firearm was sentenced today to 30 years in federal prison.

Anthony Steven Hall, Jr., 31, from Cedar Rapids, Iowa, received the prison term after a June 14, 2016, jury verdict finding him guilty of three crimes: possession of marijuana with intent to distribute, possession of a firearm by a felon and drug user, and possession of a firearm in furtherance of a drug trafficking crime.

Evidence at trial showed that on April 13, 2015, police conducted a routine traffic stop on a vehicle driven by Hall.  Police searched the vehicle and located 63 individually wrapped bags of marijuana and a .40 caliber pistol in the vehicle’s center console.  Police also seized a cell phone used by Hall.  During the traffic stop, Hall provided police with a false name and date of birth.  When police attempted to place Hall under arrest, Hall attempted to flee and physically assaulted one of the police officers.  Investigators eventually searched the cell phone and located numerous text messages discussing the distribution of marijuana.  Investigators also located cell phone video depicting Hall with a firearm on a previous occasion.

Hall was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Hall was sentenced to 360 months imprisonment.  A special assessment of $300 was imposed.  He must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.

Hall 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 Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force.  The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department. 

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

The case file number is 15-CR-55.

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A man who conspired to distribute methamphetamine was sentenced December 6, 2016, to twelve years in federal prison.

Andrew Tucker-Moreno, 30, from Bronson, Iowa, received the prison term after an August 24, 2016, guilty plea to one count of conspiracy to distribute methamphetamine.

At the guilty plea, Tucker-Moreno admitted that from about 2015 through March 2016 he and others distributed more than 500 grams of actual (pure) methamphetamine.  During a March 2016 search warrant at Tucker-Moreno’s residence in Moville, Iowa, law enforcement officers seized 679 grams of actual (pure) methamphetamine, .25 caliber pistol, two digital scales as well as other indicia of drug trafficking. 

Tucker-Moreno was sentenced in Sioux City by United States District Court Judge Leonard T. Strand.  Tucker-Moreno was sentenced to 144 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.  Tucker-Moreno 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 Shawn S. Wehde 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 16-4047.  Follow us on Twitter @USAO_NDIA.

Soon Phatdouang, 43; Touy Khamsai, 41 and Van Khamsai, 41 all from Webster City, Iowa, have been charged with one count of conspiracy to distribute methamphetamine.  The charges are contained in a Complaint filed on December 1, 2016, in United States District Court in Sioux City. 

The Complaint alleges that, from about January 2016, through December 1, 2016, the men conspired together to distribute methamphetamine in the Hamilton County Iowa area.  During a number of search warrants executed at the residences of Phatdouang and Touy Khamsai in Webster City on December 1, 2016, law enforcement officers seized approximately 26 pounds of methamphetamine, 30 pounds of marijuana, over $67,000 cash, and eleven firearms.

If convicted, each face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $100 in special assessments, and five years up to life of supervised release following any imprisonment. ­

Soon, Touy and Van appeared today in federal court in Cedar Rapids and were held without bond. 

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 Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Hamilton County Sheriff’s Department, Webster City Police Department.

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

The case file number is 16-mj-322.

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A man who absconded from federal pretrial release in 2003 for a federal drug charge in Iowa was sentenced on December 1, 2016, to more than 15 years in federal prison.

Ismael Sanchez-Acevedo, age 39, most recently from Surrey, British Columbia, Canada, received the prison term after an August 18, 2016, guilty plea to one count of possession with intent to distribute 500 grams or more of methamphetamine.

At the guilty plea, Sanchez-Acevedo admitted that in February 2003 he drove from the state of Washington to Iowa with approximately 1 ½ pounds of methamphetamine for resale.  Sanchez-Acevedo admitted he hired another man, Kyle Meinecke, to drive him from Washington to Cedar Rapids.  Sanchez-Acevedo and Meinecke were found in a Cedar Rapids hotel room on February 3, 2003, after police received complaints of heavy foot traffic to their room.  A search of the room revealed over 700 grams of methamphetamine and $2,640 in cash. 

Court records reflect Sanchez-Acevedo was charged in federal court on February 7, 2003.  He was released to pretrial release on February 17, 2003, and absconded about 10 days later.  Court records reflect that Sanchez-Acevedo remained a fugitive until May 20, 2016, when he was arrested in Washington state by Border Patrol.  At sentencing, Sanchez-Acevedo said he absconded because he was scared, and that he first fled to California, and then later to Canada.  He stated he was returning to Washington in May 2016 to visit his ailing father.

Sanchez-Acevedo was sentenced in Cedar Rapids by Senior United States District Court Chief Judge Mark W. Bennett.  Sanchez-Acevedo was sentenced to 188 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a 5-year term of supervised release after the prison term.  There is no parole in the federal system.

Sanchez-Acevedo 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 Dan Chatham and 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.

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

The case file number is 03-CR-00009-MWB.

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A man who received child pornography was sentenced today to 5 years in federal prison.

Forrest Rindels, age 60, of Waterloo, Iowa, received the sentence after an April 28, 2016 guilty plea to one count of receipt of child pornography.  At the plea hearing, Rindels admitted that, between 2001 and 2015, he knowingly received child pornography.

Rindels was sentenced in Cedar Rapids by United States District Court Judge Mark W. Bennett.  Rindels was sentenced to 60 months’ imprisonment.  A special assessment of $100 was imposed, Rindels was ordered to pay a $1,000 fine, and he must also serve a 7-year term of supervised release.  He must comply with all sex offender registration and public notification requirements.

This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Waterloo Police Department, and 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 16-2006.

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A former school bus attendant who enticed three minors was sentenced today to 11 years in federal prison.

Tyler Konigsmark, age 20, of Cedar Rapids, Iowa, received the sentence after a September 1, 2016 guilty plea to one count of enticement of minors.  At the plea hearing and in a plea agreement, Konigsmark admitted that, between April and May of this year, he used Snapchat and his iPhone to request sexually explicit images from three girls, ages 12, 13, and 14, who rode on school buses where he was an attendant.  He also admitted that he had sexual intercourse with the 12-year-old girl on two occasions after he used Snapchat and his cell phone to arrange meetings with her.

Konigsmark was sentenced in Cedar Rapids by United States District Court Judge Mark W. Bennett.  Konigsmark was sentenced to 132 months’ imprisonment.  A special assessment of $5,100 was imposed, and he must also serve a 10-year term of supervised release.  He must comply with all sex offender registration and public notification requirements.

This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Hiawatha Police Department, and 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 16-57.

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A man who sexually exploited a child, distributed child pornography, and received child pornography was sentenced today to 20 years in federal prison.

Bryan King, age 46, of Marion, Iowa, received the sentence after an August 11, 2016 jury verdict finding him guilty of one count of sexual exploitation of a child, one count of distribution of child pornography, and one count of receipt of child pornography.

The evidence at trial showed that, in October 2014, King persuaded and attempted to persuade, induce, and entice a 15-year-old child to produce an image depicting sexually explicit conduct.  The evidence also showed that King distributed this image and an image of another child to another person.

King was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand.  King was sentenced to 240 months’ imprisonment.  A special assessment of $300 was imposed, King was ordered to pay a $10,000 fine, and he must also serve a 5-year term of supervised release.  He must comply with all sex offender registration and public notification requirements.

This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Douglas County, Nebraska, Sheriff’s Office, and the Federal Bureau of Investigation.

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 15-87.

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Two men and one woman, who robbed a bank in Palo, Iowa, in May 2016, have each been sentenced to terms of federal imprisonment.

Lance Monden, age 33 from Cedar Rapids, Stanley Mosley, age 36 from Coralville, and Katherine Pihl, age 39 from Tiffin, each received a term of imprisonment after pleading guilty to one count of bank robbery.

Evidence at sentencing and prior court hearings established that the three robbed the Palo Savings Bank on May 20, 2016.  At approximately 2:35 p.m. on that day, Monden and Mosley entered the Palo Savings Bank.  Both were wearing black masks and hooded sweatshirts.  The two yelled at the employees in the bank and went from teller drawer to teller drawer taking cash.  Monden and Mosley spent about one minute in the bank before running out the door.

Pihl was waiting outside the bank with a Ford Taurus to use as a getaway car.  After leaving the bank, Monden and Mosley got into the trunk of the Taurus.  Pihl then drove the Taurus out of Palo and south towards Cedar Rapids.  Witnesses saw Monden and Mosley running from the bank wearing masks and then saw the Taurus leaving the area of the bank and reported this information to 911.  About seven minutes after the bank robbery, a deputy with the Linn County Sheriff’s Office stopped the Taurus and found Monden and Mosley hiding in the trunk of the car.  Law enforcement recovered all the cash stolen from the bank in the trunk of the car and on the persons of Monden and Mosley.

Monden, Mosley and Pihl were sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand.  Monden was sentenced to 120 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term.  Mosley was sentenced to 132 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term.  Pihl was sentenced to 24 months’ imprisonment and must also serve a 2-year term of supervised release after the prison term.  Each must also pay a $100 special assessment.  There is no parole in the federal system.

Monden and Mosley are being held in United States Marshal’s custody until they are transported to a federal prison.  Pihl was released on conditions of release previously set and is to surrender to the Bureau of Prisons on December 26, 2016.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Linn County Sheriff’s Office. 

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

The case file number is 16-CR-00051.

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The Hematology and Oncology Center of Iowa, P.C., located in Clive, Iowa, and its only corporate officer, Dr. Magdy Elsawy, have agreed to pay $176,460 to settle allegations that they violated the False Claims Act by submitting false billings for cancer drugs that were not approved, misbranded, or counterfeit, and by submitting office visit claims for visits that were either medically unnecessary or were upcoded to reflect more complex encounters than what actually happened. 

The allegations concerning the unapproved, misbranded, or counterfeit cancer drugs relate to drugs the clinic was alleged to have purchased from Medical Device King from February 1, 2012, through June 30, 2012.  Earlier this year, on June 2, 2016, the president of Medical Device King, William Scully, was sentenced to 60 months’ imprisonment after a jury found him guilty of 64 felonies for mail and wire fraud, violations of the Food Drug & Cosmetic Act, unlicensed wholesale distribution of prescription drugs, and multiple related conspiracy charges.

“The Northern District of Iowa United States Attorney office is committed to protecting the Medicare program and the taxpayers who help fund it.  This settlement will help ensure that our federal health care programs are utilized properly so they continue to serve those who need them most,” said United States Attorney Kevin W. Techau.  “Health care providers who cut corners will be held responsible.”

“U.S. consumers and patients rely on the FDA to ensure that the medicines they take are safe and effective; the public’s health is at risk when unapproved, misbranded or counterfeit drugs enter the marketplace,” said Spencer E. Morrison, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to direct our efforts to protecting the public’s health.”

This investigation was led by the Food and Drug Administration and conducted jointly with the Health and Human Services Office of Inspector General.  The claims settled by this agreement are allegations only, and there has been no determination of liability.   

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A man who robbed the F&M Bank in Monticello on July 29, 2016, pled guilty today in federal court in Cedar Rapids. 

Brandon Brown, 45, from Monticello, Iowa, was convicted of armed bank robbery.  In a plea agreement, Brown admitted he took more than $4,000 from the F&M Bank by brandishing a weapon and pointing the weapon at a bank employee. 

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Brown remains in custody of the United States Marshal and will remain in custody pending sentencing.  Brown faces a possible maximum sentence of 25 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 5 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Jacob Schunk 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 16-CR-080-LRR.

A man and woman who conspired with each other and others to distribute methamphetamine were each sentenced to federal prison.

Elyaxel Vasquez, 31, and Ashley Shivers, 31, both from Fort Dodge, Iowa received the prison terms after guilty pleas to conspiracy to distribute methamphetamine.

At the guilty pleas, Vasquez and Shivers both admitted their involvement in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the Fort Dodge, Iowa, area from about 2014 continuing through December 2015.  Both were also involved in the distribution of methamphetamine to individuals cooperating with law enforcement. 

Vasquez and Shivers were sentenced in Sioux City by United States District Court Judge Leonard T. Strand.  Vasquez was sentenced to 126 months’ imprisonment and Shivers was sentenced to 78 months’ imprisonment.  A special assessment of $100 was imposed for each.  They each must also serve a 5-year term of supervised release after the prison term.  There is no parole in the federal system.  Vasquez and Shivers are 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 Shawn S. Wehde and investigated by the Iowa Department of Narcotics Enforcement, Tri-County Drug Task Force, Webster County Drug Task Force, Fort Dodge Police Department, Webster County Sheriff’s Office, and Iowa Division of Criminalistics Investigation. 

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

The case file number is CR15-3047.  Follow us on Twitter @USAO_NDIA.

A northern Iowa man pled guilty yesterday, in federal court in Cedar Rapids, to unlawfully disposing of the City of New Hampton’s sewage sludge.

Donald James Warnke, 64, from Sumner, Iowa, was convicted of one count of unlawfully disposing of sewage sludge from a publically owned treatment works.

At the plea hearing, Warnke admitted that, on June 19, 2015, he knowingly disposed of sewage sludge from a publically owned treatment works.  More specifically, Warnke dumped domestic sewage from the City of New Hampton Wastewater Treatment Plant in a field, which violated federal regulations governing the disposal of such sewage sludge. 

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Warnke remains free on certain conditions of release pending sentencing.  Warnke faces up to three years’ imprisonment, a fine of not less than $5,000 but not more than $50,000 per day of violation, a $100 special assessment, and one year of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorneys Tim Vavricek and Matt Cole and was investigated by the Environmental Protection Agency, Criminal Investigations Division. 

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

The case file number is 16-CR-2054-LRR.

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Camron Andrew Pete, Jr., 24, received a statutory maximum ten-year prison term after his April 25, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance.  At sentencing, Pete admitted he fired shots at an occupied residence in Dubuque in December 2015.  Chief Judge Linda R. Reade of the United States District Court found Pete fired the shots, which penetrated the residence, with a high-capacity magazine.  Pete also admitted he obstructed justice by attempting to tamper with a grand jury witness.

Reginald Darnell Shaw, Jr., 25, received a 46-month prison term after his April 28, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance and following a misdemeanor conviction for a crime of domestic violence.  At sentencing, Shaw admitted he came to Dubuque from Wisconsin to protect Pete and accompanied Pete to the Dubuque shooting with a loaded firearm.

Landon Nathanson-Love, 24, received a 57-month prison term after his April 25, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance.  At sentencing, Nathanson-Love admitted to selling Pete and Shaw the firearms that were later used in the shooting.  Nathanson-Love had purchased the firearms by means of a fraudulently procured gun permit.  Judge Reade found Nathanson-Love obstructed justice by working with a family member to delete a social media account and tampering with a grand jury witness.  Judge Reade commended the courage of the witnesses in spite of the attempts to obstruct justice in the cases.

A special assessment of $100 was imposed in each case.  All three defendants must also serve a three-year term of supervised release after their respective prison terms.  There is no parole in the federal system.  All three defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.

The cases were prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.   

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

The case file number is 16-CR-1011-LRR.

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A man who conspired to distribute a mixture containing heroin and a drug called furanylfentanyl to one individual who died and two others who were seriously injured pled guilty today in federal court in Cedar Rapids.

Joshua Allen Manning, age 22, from Maquoketa, Iowa, was convicted of one count of conspiracy to distribute heroin and furanylfentanyl resulting in death and serious bodily injury. 

At the plea hearing, Manning admitted he agreed to distribute the substances during March 2016.  Manning admitted two individuals suffered serious bodily injury and another died after using the substances on March 3, 2016.  Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is illegal to distribute them just as it is to distribute substances such as cocaine, heroin, and marijuana.  Furanylfentanyl is a powerful synthetic opioid, and is an analogue of fentanyl. 

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared.  Manning remains in custody of the United States Marshal pending sentencing.  Manning faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.

The case is being investigated by the Dubuque Drug Task Force, Maquoketa Police Department, and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and 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 16-CR-01031-LTS.

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A former investment broker who was previously sentenced to more than nine years’ imprisonment for defrauding his investment clients was sentenced today to two more years in federal prison for obstructing justice during the course of proceedings related to his fraud prosecution.  

Randy Beltramea, age 52, from Marion, Iowa, received the additional prison term after a guilty plea to four counts of obstruction of justice. 

At the guilty plea hearing, Beltramea admitted that, after the government instituted forfeiture proceedings to forfeit his interest in property he purportedly obtained from fraudulent activity, he took unlawful steps to obstruct the forfeiture proceedings by accepting payments for and placing a mortgage on property that had been identified as forfeitable.   

Beltramea was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Beltramea was sentenced to 24 months’ imprisonment.  A special assessment of $400 was imposed.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Jacob Schunk 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 1:14-cr-00095-LRR.

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CEDAR RAPIDS, IA – A northwest Iowa man who owed a monetary penalty to the United States for numerous violations of animal welfare regulations at his kennel was sentenced today to 3 years’ probation for lying to the government about his assets and income.

Gerhard (“Gary”) Felts, age 61, from Kingsley, Iowa, was sentenced after a July 13, 2016 guilty plea to one count of making false statements to the United States.

A plea agreement and sentencing records show that Felts has operated Black Diamond Kennel since 1998.  In 2010, he obtained his Class A license from the United States Department of Agriculture (USDA).  The USDA conducted 17 inspections since then, finding Felts had 51 noncompliant items, including inadequate veterinary care, as well as inadequate housing, cleaning, sanitation and housekeeping.  As a result of these violations, USDA obtained an $18,938 administrative penalty against Felts.

Felts failed to pay this administrative penalty and the United States obtained a civil judgment against him in order to collect the penalty.  During the collection process, defendant lied to the government about his bank accounts and his income from a workers’ compensation settlement.  Specifically, Felts failed to disclose a checking account he opened in April 2011, a savings account opened in April 2013, and his receipt of $25,000 worth of worker’s compensation payments in April 2013.  Once defendant received his workers’ compensation settlement, he used the money to expand his kennel rather than paying his administrative penalty.  Felts currently owes $13,382.70 on his administrative penalty.

Felts was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Felts was sentenced to 3 years’ probation with a special condition that requires him to stay current on monthly payments to USDA.  The court also ordered that, should he not be debarred from serving as a federally licensed dealer under the Animal Welfare Act, Felts must comply with all applicable federal, state, and local regulations and laws regarding his license and care of animals including but not limited to the Animal Welfare Act.  A special assessment of $100 was also imposed.

“The United States takes very seriously its obligation to collect debts from those who violate the Animal Welfare Act.  False statements in that process will not be tolerated,” stated United States Attorney Kevin W. Techau.  “The Animal Welfare Act’s purpose is to protect animals and those who violate it and are ordered to pay penalties will not be allowed to avoid those consequences by lying to the government.  We strongly recommend that the Animal and Plant Health Inspection Service debar Mr. Felts from operating as a federally licensed dog breeder and dealer.  Mr. Felts was penalized because of more than a dozen violations of animal welfare regulations and then lied to avoid the repercussions of his actions.  His failure to care for his animals and this conviction demonstrate that he should be debarred in order to safeguard the welfare of his animals.”

The case was prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by U.S. Department of Agriculture.  Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-cr-49.

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