Northern District of Iowa

Today, the Eighth Circuit Court of Appeals upheld the convictions and sentences of Jamal and Levon Dean Jr. Previously, Jamal Dean, 23, of Sioux City, was sentenced to life imprisonment for conspiracy, felon in possession of a firearm, carjacking, robbery, and brandishing a gun in furtherance of a violent crime. Levon Dean Jr., 25, of Sioux City, was sentenced to 400 months imprisonment for conspiracy, felon in possession of a firearm, robbery and possessing a gun in furtherance of a violent crime.

In its opinion, the court rejected the Deans’ numerous arguments for a new trial and resentencing in their entirety. The opinion of the court can be found at http://media.ca8.uscourts.gov/opndir/15/12/151263P.pdf.

“The arrest, conviction and sentencing of Jamal and Levon Dean, and now the Eighth Circuit Court of Appeal ruling affirming their sentences and convictions are the result of law enforcement partners at the federal, state and local levels working together to help make Woodbury County and the surrounding region safer for everyone. Assistant United States Attorney Forde Fairchild did an outstanding job of prosecuting this case and handling the appeal. " said U.S. Attorney for the Northern District of Iowa Kevin W. Techau.

The case was prosecuted by Assistant United States Attorney Forde O. Fairchild and was investigated by the Sioux City Police Department, the South Sioux City Police Department, the Woodbury County, Iowa Sheriff Office the Dakota County, Nebraska Sheriff’s Office, The Woodbury County, Iowa Attorney’s Office, the United States Marshal’s Service, the Iowa Department of Public Safety, the Texas Department of Public Safety, the Iowa Department of Motor Vehicles, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 13-4082.

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A Waterloo man who possessed ammunition as a marijuana user was sentenced today to more than two years in federal prison.

Marshondus Trenedale Brown, 23, from Waterloo, Iowa, received the prison term after a September 28, 2015, guilty plea to being a marijuana user in possession of ammunition.

In a plea agreement, Brown admitted he walked into a convenience store in Waterloo on April 17, 2015 carrying a .45 caliber firearm loaded with .45 Remington ammunition.  During a fight that began in the convenience store between two groups of individuals, Brown discharged his firearm in the direction of a SUV into which members of the other group had fled.  Five bullets lodged in the rear bumper or back hatch door of the SUV. 

Brown was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Brown was sentenced to 27 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Waterloo Police Department. 

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

The case file number is 15-CR-2033-LRR.

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A man charged with illegal re-entry following an aggravated felony conviction, and with violating the terms of his federal supervised release was sentenced December 21, 2015, to 120 months (10 years), and 24 months imprisonment, respectively.       

Inmar Hernandez-Pineda, age 25, from El Salvador, received the prison terms after a guilty plea to one count of illegally re-entering the United States following a conviction as an aggravated felon.  At the guilty plea, Hernandez-Pineda admitted he had illegally re-entered the United States from El Salvador after prior aggravated felony convictions of criminal mischief 2nd degree, and theft 2nd degree in Woodbury County in 2009.

Hernandez-Pineda came to the attention of Immigration and Customs Enforcement (ICE) after he was arrested on June 5, 2015, by the Sioux City police for robbery, and going armed with intent when he and another individual committed an armed robbery at Natalia’s Bakery in Sioux City. During the robbery, defendant was armed with an eight-inch knife and his accomplice was armed with a shotgun.  During the robbery, the bakery owner’s son fought with the accomplice, who pulled a knife and stabbed the owner’s son in the shoulder and scalp. Defendant committed the armed robbery of Natalia’s Bakery on June 5, 2015, after his last deportation on September 29, 2014.    

Hernandez-Pineda was sentenced in Sioux City, Iowa by United States District Court Judge Mark W. Bennett. Hernandez-Pineda was sentenced to 120 months imprisonment for illegal re-entry, and 24 months imprisonment for violation of his federal supervised release. A special assessment of $100 was also imposed. He must serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Hernandez-Pineda is being held in the United States Marshal’s custody until he can be transported to the Iowa Department of Corrections to begin to serve his state sentence prior to serving his federal sentence.   

The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau and the Sioux City, Iowa, Police Department. 

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

The case file number is 15-CR-4039.

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Iowa Hospice, LLC, has agreed to pay $1,088,244.02 to resolve civil allegations that it violated the federal False Claims Act by submitting false bills to Medicare for hospice services. 

The Medicare hospice benefit is only available to patients who elect palliative care (medical care focused on providing patients with relief from pain, symptoms, or stress) for a terminal illness and who have a life expectancy of six months or less if their illness runs the normal course.  The government alleged that Iowa Hospice knowingly submitted false claims to the government for payment of these services because, during some or all of the period that certain patients were receiving hospice care, the patients did not have a medical prognosis of six months or less if their illnesses ran their normal course.  The claims settled by the agreement are allegations only; there has been no admission or judicial determination of liability. 

“The Medicare hospice benefit is only intended for terminally ill Medicare beneficiaries who need end of life care,” said United States Attorney Kevin W. Techau.  “We will continue to diligently investigate and pursue all instances of misconduct in federal health care programs to ensure that no federal monies are misspent, all providers play by the rules, and patients receive the care to which they are entitled.”   

“Being a hospice provider in the Medicare program is a privilege, not a right.  Hospice providers that try to boost their profits by providing hospice care to Medicare beneficiaries who are not terminally ill compromise both the health of those patients as well as the financial integrity of Medicare,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services, Office of Inspector General.  “Our agency will continue to hold such hospice providers accountable for their actions.”        

The allegations resolved by the settlement arose from work performed by NCI Advancemed, and an investigation led by the Department of Health and Human Services, Office of Inspector General.  False Claims Act cases also arise under the qui tam, or whistleblower, provisions of the False Claims Act.  Under those provisions, a private party may file suit on behalf of the United States for false claims and share in any recovery. 

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Thomas A. Munson, 76, from Prairie du Chien, Wisconsin, has been charged with one count of embezzlement and theft.­  The charge is contained in an Information filed on December 8, 2015, in United States District Court in Cedar Rapids. 

The Information alleges that, between about July 16, 1990 and May 17, 2012, Munson knowingly concealed human remains in the possession of the United States.

If convicted Munson faces the following maximum penalties: (1) not more than one year imprisonment without the possibility of parole or a term of probation of not more than five years; (2) a fine of not more than $100,000; (3) a mandatory special assessment of $25; and (4) a term of supervised release of not more than one year following any prison term.

Munson appeared on December 16, 2015, in federal court in Cedar Rapids and was released without bond.  Munson’s next appearance for a change of plea hearing is set for January 4, 2016, at 1:30 p.m. 

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

The case was investigated by the National Park Service and is being prosecuted by Assistant United States Attorney Forde Fairchild.

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

The case file number is 15-CR-1030.

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CEDAR RAPIDS, IA – United States Attorney Kevin W. Techau announced today that the Northern District of Iowa collected $16,332,696 million in the fiscal year ending September 30, 2015, more than twice the office’s direct budget.  Monies collected are returned to the federal treasury and victims of crimes.

Civil collections come from the government pursuing money lost to fraud, overpayments, or other misconduct, or collection of fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights, and environmental laws.  Criminal collections involve actions related to victim restitution, fines, and court costs.   

The Breakdown

The total $16 million collection effort is made up of the following:

1. $8,690,693 was collected in criminal actions, which included victim restitution, fines, and court costs; and

2. $7,642,003 was collected in civil actions.These civil actions are cases in which the office, acting on its own or with other components of DOJ, obtained judgments and settlements and collected those judgments and settlements; or where the office collected monies from individuals who failed to pay financial obligations owed to the United States.

In measuring collections recovered in FY 2015, these figures necessarily include some cases that were resolved in previous years but the proceeds of which were collected in the fiscal year 2015.

The top criminal collection involves Austin “Jack” DeCoster, his son Peter DeCoster, and their company, Quality Egg LLC.  The criminal case involved bribery of a public official, introducing a misbranded food into interstate commerce with intent to defraud, and introducing adulterated food into interstate commerce.  Adulterated eggs produced and distributed by Quality Egg were linked to approximately 1,939 reported consumer illnesses in multiple states—a nationwide outbreak of salmonellosis that led to the August 2010 recall of millions of eggs produced by them. In addition to both DeCosters being sentenced to serve prison time and fined $100,000, their company was sentenced to pay a fine of $6.79 million.

The top civil collection for the Cedar Rapids Office resulted from a settlement with ResCare Iowa Inc., which agreed to pay $5.63 million to the United States and the State of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs. 

United States Attorney for the Northern District of Iowa, Kevin W. Techau, reinforced the importance of these collections, indicating “The recovery of ill begotten funds for the federal treasury and for victims of crimes is a top priority.  I am very proud of the office’s efforts to hold accountable those who wrongfully profit at the expense of the United States.”

DOJ Collections

Nationally, the Department of Justice (DOJ) collected $23.1 billion in civil and criminal actions in fiscal year (FY) 2015.  The amount collected represents more than seven and a half times the approximately $2.93 billion of the department’s combined appropriations for the 94 United States Attorneys’ Offices and the main litigating divisions in that same period. 

The 23.1 billion includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements.  It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.

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A man who conspired to distribute methamphetamine was sentenced December 3, 2015, to more than six years in federal prison.

Joe Edward Leal, 49, from Hartley, Iowa, received the prison term after a September 1, 2015, guilty plea to conspiracy to distribute methamphetamine.  

At the guilty plea, Leal admitted his involvement in a conspiracy from about July 2013 and continuing through May 2014 that distributed more than 50 grams of actual (pure) methamphetamine.  On three occasions in January and February 2014, Leal distributed over 53 grams of actual (pure) methamphetamine to individuals cooperating with law enforcement.

Leal was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Leal was sentenced to 81 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.

Leal 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 Iowa Division of Narcotics Enforcement, Sheldon, Iowa Police Department, Iowa Great Lakes Drug Task Force, and Iowa Division of Criminalistics Investigation. 

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

The case file number is 15-4005.

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CEDAR RAPIDS, IA – Assistant United States Attorney, and Army Reserve Major General, Patrick J. Reinert, from Cedar Rapids, recently became the commanding general of the 88th Regional Support Command (RSC) during a change of command ceremony.

The 88th RSC, headquartered on Fort McCoy, Wisconsin, provides services and base operations support to more than 55,000 Army Reserve soldiers, civilians and families serving in 633 units at 278 sites dispersed across 19 states in the northern United States from the Ohio River Valley to the Pacific Coast.

Key services provided by the command include human resources, medical administration, funding, physical security, environmental compliance, training areas, safety, force management, equipment maintenance and storage, and facility management.

Reinert took command of the 88th RSC on December 4th.  He acknowledged the complex world we live in and the necessity of having an Army Reserve that is ready to answer the nation’s call whenever needed.  “This command is central to creating and sustaining readiness,” said General Reinert.  “We are a critical component – and I know we are up to the challenge.”

“We greatly appreciate the values, leadership and unique skills all of our National Guard and Reserve service members bring to the Northern District of Iowa’s United States Attorney’s Office and the Department of Justice,” United States Attorney Kevin W. Techau offered. He also noted, “We stand proudly with them as they answer our nation’s call to defend our way of life.  Their personal sacrifices are essential to the strength of our nation.  General Reinert is the epitome of that service and sacrifice. He is a tremendous leader. ”

Reinert has proudly served the nation for more than 30 years as a commissioned officer.  His most recent assignments have included commander of the U.S. Army Reserve Legal Command, commanding General of the Rule of Law Field Force in Afghanistan, and Commanding General of Combined Joint Inter-Agency Task Force 435 in Afghanistan.     

In his civilian capacity, Reinert is the lead Organized Crime Drug Enforcement Task Force Attorney for the United States Attorney’s Office located in Cedar Rapids, and has been with that office for over 25 years.

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A man and a woman who attempted to obstruct a federal court proceeding by providing a false document were each sentenced on November 25, 2015, to about two years in federal prison.

Asa Adams, age 26, from Waterloo, Iowa, received the prison term after a June 29, 2015, guilty plea to one count of obstruction of justice.

Nicole Wells, age 36, also from Waterloo, Iowa, received the prison term after a July 6, 2015, guilty plea to one count of obstruction of justice.

In plea agreements, Adams and Wells admitted that they worked together to create a false letter to be presented in federal court in a failed attempt to help Adams evade a revocation of his supervised release.  Adams was convicted in 2011 of being a felon in possession of a firearm.  After serving a sixteen-month sentence in federal prison, Adams was placed on supervised release on October 2, 2014.  One of the conditions imposed on supervised release was that Adams not use controlled substances. On December 24, 2014, Adams submitted a urine sample that tested positive for marijuana. His drug use was tested by random urinalysis.  In an attempt to evade having his supervised release revoked and being sent back to prison, Adams recruited his coworker and friend, Nicole Wells, to fabricate a false letter.  The letter, purportedly written by a supervisor at the restaurant where Adams and Wells worked, falsely claimed another employee had brought in marijuana-laced brownies to work.  The letter was not written by the supervisor and there were no marijuana-laced brownies.

Adams provided the false and fictitious letter to his defense attorney, who unwittingly filed it with the federal court as an exhibit.  At a hearing on a petition to revoke Adams’s supervised release, however, the letter was shown to be false when the supervisor and employee who allegedly brought the brownies to work testified to the contrary. 

The court found Adams had tested positive for marijuana because he had used marijuana, and sentenced Adams to a year in federal prison for violating the terms of his supervised release.

Adams and Wells were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Adams was sentenced to 27 months’ imprisonment (to run consecutively to the one-year sentence previously imposed) and Wells was sentenced to 21 months’ imprisonment.  A special assessment of $100 was imposed on each of them.  Each must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

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

Wells was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.

The case was prosecuted by Assistant United States Attorney C.J. Williams and 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 15-CR-42-LRR. 

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A man who was found in possession of two firearms during a traffic stop pled guilty today in federal court in Cedar Rapids.

Tyshawn Bush, age 20, from Cedar Rapids, Iowa, was convicted of one count of being an unlawful user of marijuana in possession of firearms.

In a plea agreement, Bush admitted that, on June 27, 2015, he purchased a Savage Arms, 12 gauge shotgun in Cedar Rapids, Iowa.  In purchasing the firearm, Bush falsely denied using illegal controlled substances.  In truth, at the time Bush purchased the shotgun, he was a regular unlawful user of marijuana.  On July 16, 2015, Cedar Rapids police officers made a vehicle traffic stop on the southwest side of Cedar Rapids.  Bush was a passenger in the vehicle.  On the floor of the back seat, where Bush was sitting, officers found a loaded Lorcin .25 caliber pistol, with an obliterated serial number.  In the trunk, officers found a Westernfield 16 gauge shotgun which Bush admitted was his.

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

The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation as part of the Safe Streets Task Force. 

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

The case file number is 15-CR-0086-LRR.

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On Tuesday, November 24, 2015, three men were sentenced for their roles in a scheme to defraud the Iowa Trust and Savings Bank in Emmetsburg, Iowa.

Richard Jones, age 62, a banker from Emmetsburg, Iowa, Michael Manning, age 68 of Milford, Iowa, and Aric Manning, age 37, of Phoenix, Arizona were each convicted of one count of bank fraud, and were sentenced to federal prison for their roles in the scheme.  Two others, Russ Salton, age 55, of Ruthven, Iowa, (who pled guilty to bank fraud) and Sue Salton, age 52, of West Des Moines, Iowa, (who pled guilty to False Statement to a Bank), had already been sentenced in federal court.  

During the five change of plea hearings and five sentencings in this case, it was revealed that for over six years (from about November 24, 2003 to about March 29, 2010) as Senior Vice-President of Iowa Trust and Savings Bank (“ITSB”), in Emmetsburg, Iowa, Jones used his position of trust to engage in two similar, but wholly separate, criminal schemes with two separate groups of criminals (i.e., the Mannings in one scheme, and the Saltons in another).

Jones side-stepped the safeguards the ITSB and FDIC had established to protect ITSB from making dangerous loans.  Jones deceived the bank into thinking third parties were taking out new loans in small amounts, when in fact, Jones was actually directing the bank’s money to the Mannings and the Saltons, both of whom were struggling borrowers with worrisome amounts of debt.

During these schemes, Jones personally forged the signatures of unknowing bank customers, repeatedly lied to and tricked his fellow ITSB bankers, and repeatedly committed aggravated identity theft by stealing the identity of some of his customers to fraudulently direct money to his co-schemers.

The Jones-Salton scheme fraudulently obtained loans worth about $389,284.00 and the Jones-Manning scheme fraudulently obtained loans worth about $86,351.17.  None of these fraudulent loans could have been obtained without Jones’s personal involvement in each of the schemes.        

Jones and the Mannings were sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Jones was sentenced to 14 months’ imprisonment.  A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $207,209.17 to ITSB.  He must also serve a five-year term of supervised release after the prison during which time he must make presentations warning others of the consequences of engaging in bank fraud.  Finally, he was required (by his plea agreement with the United States) to make a public acknowledgment of guilt in several local papers. There is no parole in the federal system.

Aric Manning was sentenced to 12 months’ and 1 day imprisonment.  A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $58,049.17 to ITSB.  He must also serve a 5-year term of supervised release after the prison term. 

Mike Manning was sentenced to time served (about a day).  A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $27,460.00 to ITSB.  He must also serve a 3-year term of supervised release after the prison term. 

Sue Salton was sentenced in Sioux City on October 23, 2015, by United States District Court Judge Mark W. Bennett.  Sue Salton was sentenced to time served (about a day).  A special assessment of $100 was imposed and she forfeited $10,000 to the United States.  She must also serve a 3-year term of supervised release after the prison term. 

Russell Salton was sentenced in Sioux City on November 9, 2015 by United States District Court Judge Mark W. Bennett.  Russell Salton was sentenced to 13 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $121,700 to ITSB.  A special assessment of $100 was imposed.  He must also serve a 5-year term of supervised release after the prison term. 

Jones and Aric Manning (like Russell Salton before them) were released on the bond previously set and are to surrender to the Bureau of Prisons on a date yet to be set.   

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number for Jones is 14-3061.  The case file number for Russell Salton is 14-3058 and for Sue Salton is 14-3064.  The case file number for Michael Manning and Aric Manning is 14-3057.

The case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General; The Iowa Department of Criminal Investigations; the Federal Bureau of Investigations; the Small Business Administration, Office of Inspector General; and the Department of Veterans Affairs, Office of Inspector General.  The case was prosecuted by Assistant United States Attorney Forde Fairchild.

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CEDAR RAPIDS – The Eastern Iowa Heroin Prevention/ Treatment/ Enforcement Initiative is a partnership between the Cedar Rapids Police Department and the United States Attorney’s Office in Cedar Rapids.  The goal of the initiative is to stem the tide of heroin supply and use affecting Eastern Iowa.  It is widely accepted that the goal cannot be reached by solely focusing on prosecuting drug traffickers.  Prevention and treatment efforts must also be enhanced and engaged to reduce the demand for highly addictive and dangerous opioids.

The Eastern Iowa Heroin Initiative operates with funding from the Midwest High Intensity Drug Trafficking Area (HIDTA), which secured funding to dedicate a police officer to coordinate regional partnerships. 

Federal, State and local law enforcement are working with medical, prevention, treatment and public health leaders to encourage Iowa families to clean out medicine cabinets and safely rid their homes of unwanted and expired prescription medications.  Unused prescription drugs in homes create a public health and safety concern because the medications can be accidentally ingested, stolen, misused, and abused.  Drop-off boxes provide a safe, convenient, and responsible means of prescription drug disposal.

The Johnson County Sheriff’s Office together with the Coralville, University Heights and Waterloo Police Departments join in this effort by offering drop-off boxes at their locations, which will be securely maintained and available to the public around the clock.  There are two webpage links that can be used to search for the nearest law enforcement based drop-box.  The National Association of Drug Diversion Investigators webpage can be found at: http://rxdrugdropbox.org/. The Iowa Governor’s Office of Drug Control Policy features a map of sites and can be accessed at: http://www.iowa.gov/odcp/drug_information/takebacks.html. The goal is to have one box in every Iowa County.

Why Are Drop-Off Boxes Important?

The most recent National Survey on Drug Use and Health shows prescription medicines to be the most abused drugs by Americans other than marijuana.  Seven of the 10 drugs most commonly abused by teenagers are prescription medicines.  One in 10 teens has used Vicodin non-medically.  Almost three-fourths of teen prescription drug abusers get the drugs from family and friends.  The home medicine cabinet is a major source.  These medicines should not be thrown in the trash where others can find them.

Prescription drugs containing controlled substances are being misused and abused at alarming rates in America today, leading to cases of accidental poisoning, overdose, and addiction.  A major factor contributing to their increased usage is their availability in the home medicine cabinet. In many cases, medicines containing controlled substances remain in the home medicine cabinet long after therapy has been completed, thus making these drugs easily accessible to others who would misuse or abuse them.

Why?  Two-thirds of all teenagers who abuse prescription narcotics first obtain the drugs from family and friends.  Parents and grandparents can help keep their kids safe.  Start by assessing and securing the prescription narcotics in your home.  Unneeded prescription narcotics should be disposed of in a safe manner and parents need to talk with their kids about the dangers of abusing prescription narcotics.

“We are urging all Iowans to safely dispose of prescription drugs. When prescription drugs, especially opiates, fall into the wrong hands, they are extremely dangerous and even deadly,” said United States Attorney Northern District of Iowa, Kevin W. Techau.  “That's why we are urging the public to take some time to sort through their medicine cabinets and safely dispose of any unneeded medications at nearby take-back locations as soon as possible.”

Drop boxes are free, and the program is entirely anonymous.  The public is urged to turn in their unused, unwanted, unneeded medicine, no questions asked. 

Only pills and other solid prescriptions, such as patches, can be disposed of at a collection site. Liquids and needles will not be accepted          

To learn more about local initiatives to combat the drug threat go to Eastern Iowa Heroin Initiative on Facebook. A list of area drop-boxes is attached. area_drop-box_locations.pdf (61.6 KB)

Special thanks to the Johnson County Postmaster, Stacy St. John, for donating four unused mailboxes for this purpose along with Banacom Signs & Designs for the graphic work, and Cassill Collison Center for painting the boxes.

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The United States Attorney's Office for the Northern District of Iowa has established a link on its website and a dedicated telephone line to provide case updates and other information, including assistance in submitting victim impact statements or claims for restitution, for potential victims in the following cases:

United States v. William B. Aossey, Jr.,

Case Number 14-CR-00116

United States v. Jalel Aossey, Yahya Nasser Aossey, Midamar Corporation, and ISA, Inc., d/b/a Islamic Services of America,

Case Number 14-CR-0138

Under the Crime Victims Rights Act (Title 18, United States Code, Section 3771), victims of federal crimes have several rights, including: to be notified of certain Court proceedings; to be reasonably heard by the Court; and to submit claims for restitution.  Through the website and telephone line, potential victims will be provided timely and accurate information about the criminal cases and their rights under the law.

Potential victims can view the Victim Witness Assistance link on the United States Attorney=s website to receive updated case information.  The website provides victims with information about their statutory rights and includes links to court documents in the case.  The website also contains a link to a victim impact statement, through which persons claiming to have been victims of one of the referenced cases can submit a statement to the Court and/or make a claim for restitution.  The website may be found at: http://www.justice.gov/usao-ndia/victim-witness-assistance/information-victims-large-cases  

Potential victims may also call (319) 731-4034 or toll free at (877) 398-2842 to learn more about their rights.

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CEDAR RAPIDS – The United States Attorney’s Office for the Northern District of Iowa together with state law enforcement agency representatives will hold a press conference on November 24th to discuss a new program begun by the Eastern Iowa Heroin Initiative.  Deaths from drug overdoses in the United States surpassed deaths from either firearms or motor vehicle accidents each year since 2008, according to a newly released report.  This new initiative has been developed to encourage the public to play a part in curbing prescription drug overdose deaths.  

Four drug drop-off boxes will be placed in Johnson and Black Hawk County as part of the Eastern Iowa Heroin Initiative, which will provide for an anonymous, no questions asked way for people to dispose of expired, unused, or unwanted medications.  A drop-off box will be on display.

U.S. Attorney Kevin Techau will be present at the press conference.

Event Details

When:  Tuesday, November 24, 2015

Where: Cedar Rapids Police Department (Community Room), 505 1st Street S.W., Cedar Rapids, IA

Time: 11:00 a.m.

A press release will be provided and interview opportunities will be available after the press conference.

A woman who was conspiring to manufacture methamphetamine with her husband for approximately five years was convicted by a jury after a two-and-a-half day trial in federal court in Cedar Rapids.

Lisa Ann Davis, 48, from Hopkinton, Iowa, was convicted of all three counts charged against her in an Indictment filed October 27, 2015.  In addition to the conspiracy charge, the jury found Davis guilty of attempting to manufacture methamphetamine and aiding and abetting the manufacture of methamphetamine, as well as possession of pseudoephedrine with intent to manufacture and for use in the manufacture of methamphetamine.  The verdict was returned yesterday afternoon following about 90 minutes of jury deliberations.

Davis’s husband, Jody Davis, 46, pled guilty the day before trial to a single count of attempting to manufacture and aiding and abetting the manufacture of methamphetamine on or about June 20, 2015.

The evidence at trial showed that Davis conspired with her husband and others to manufacture methamphetamine.  She purchased approximately three boxes of pseudoephedrine per month from August 2010 to June 2015 to manufacture methamphetamine.  Davis also purchased known methamphetamine supplies from various retail establishments throughout Eastern Iowa.  On June 20, 2015, the Delaware County Sherriff’s Office executed a search warrant at Davis’s Hopkinton home.  Officers found Davis in her kitchen surrounded by methamphetamine manufacturing materials.  A pie dish in a microwave, and a snort tube in a kitchen cabinet, also tested positive for methamphetamine.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Davis was taken into custody by the United States Marshal after the verdict and will remain in custody pending a detention hearing on Monday afternoon.  Davis faces up to 20 years of imprisonment on each count, possible maximum sentence of up to 60 years’ imprisonment, a $2,250,000 fine, $300 in special assessments, and a lifetime of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorneys Tim Vavricek, Erin Eldridge, and C.J. Williams, and was investigated by the Delaware County Sheriff’s Office, the Iowa Office of Drug Control Policy, and the Iowa Division of Criminal Investigation, Criminalistics Laboratory. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-2028.

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Randy Metcalf, age 40, from Dubuque, Iowa, has been charged with committing a hate crime by causing bodily injury to a person because of that person’s race.­  The charges are contained in a Complaint unsealed yesterday in United States District Court in Cedar Rapids. 

The Complaint alleges that, on or about January 12, 2015, Metcalf assaulted an African American male at the Northside Bar in Dubuque, Iowa, by stomping on and kicking his head.  The complaint further alleges that Metcalf assaulted this man because he was African American and that Metcalf had been using racial slurs in reference to the man over the course of the night prior to the assault.

If convicted, Metcalf faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and not more than 3 years of supervised release following any imprisonment.­

Metcalf appeared today in federal court in Cedar Rapids and was held without bond.  Metcalf’s next appearance for a detention and preliminary hearing is set for 9:00 a.m. on November 20, 2015. 

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 Anthony Morfitt and was investigated by the Federal Bureau of Investigation and the Dubuque Police Department.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-MJ-325.

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A woman who used false identification documents to obtain employment was sentenced on November 9, 2015, to time served.

Ostolia Collazo-Pena, age 43, from Mexico, received the prison term after a September 1, 2015, guilty plea to one count of fraud and misuse of visas, permits, and other documents.

In a plea agreement, Collazo-Pena admitted she presented a fraudulent Green Card and Social Security Card to apply for a job in Sioux City, Iowa, on June 11, 2014.  Collazo-Pena came to the attention of authorities when the victim whose social security number Collazo-Pena had been using alerted the Social Security Administration that her disability social security payments for her two disabled children had been disrupted.

Collazo-Pena was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Collazo-Pena was sentenced to time served.  She must serve a 1-year term of supervised release.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the Office of the Inspector General, Social Security Administration and Homeland Security Investigations.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-4002.

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A man who illegally re-entered the country was sentenced on November 9, 2015, to time served.

Isaias Zavala-Aguilar, age 27, from Mexico, received the prison term after an August 24, 2015, guilty plea to one count of illegal re-entry of a removed alien.

At the guilty plea, Zavala-Aguilar admitted he illegally re-entered the United States after being deported on April 26, 2008.   Zavala-Aguilar came to the attention of Immigration and Customs Enforcement (ICE) officials on July 16, 2015, after his arrest for soliciting prostitution in Sioux City. 

Zavala-Aguilar was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Zavala-Aguilar was sentenced to time served.  He must serve a 1-year term of supervised release. 

The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Immigration and Customs Enforcement (ICE) and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-4049.

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A man who illegally re-entered the country was sentenced on November 9, 2015, to eight months in federal prison.

Baudilio Perez-Ramirez, age 34, from Guatemala, received the prison term after a September 14, 2015, guilty plea to one count of felon found after illegal re-entry.

At the guilty plea, Perez-Ramirez admitted he illegally re-entered the United States after being deported on December 15, 2011.   Perez-Ramirez came to the attention of Immigration and Customs Enforcement (ICE) officials on August 19, 2015, when he was arrested in Sioux City after fleeing from officers attempting to establish his identity.  Perez-Ramirez had previously been deported after being convicted of fraud and misuse of documents to obtain employment and re-entry of a removed alien in the United States District Court for the Northern District of Iowa on November 10, 2011.

Perez-Ramirez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Perez-Ramirez was sentenced to eight months imprisonment.  He must serve a 1-year term of supervised release.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Immigration and Customs Enforcement (ICE) and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-4056.

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CEDAR RAPIDS - Over the last two decades, a perfect storm has led to skyrocketing rates of opiate painkiller addiction and subsequent drug overdoses. Patients have increasingly abused addictive opioid pain-killers, and then transitioned to heroin, which may be cheaper and more accessible but often times more deadly.

The United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the University of Iowa’s College of Public Health Injury Prevention Research Center (IPRC) hosted its first-ever summit today to discuss interagency collaboration on this critical public health issue.  Around 200 professionals from the fields of law enforcement, medicine, treatment, and public health attended the summit at the University’s College of Public Health.

Nationally, drug overdoses caused 44,000 deaths in 2013, and over two million people misused prescription drugs. Iowa is not immune and has experienced alarming trends. From 2000 to 2013, the number of Iowans dying from prescription medication overdoses increased by 20 times. During that same timeframe, heroin overdose deaths increased from one to 20 per year.

A solution to this epidemic requires a coordinated effort by prevention specialists, treatment professionals, law enforcement and the entire medical community.

United States Attorney for Northern District of Iowa Kevin W. Techau offered his assessment of the importance of the summit, stating, “Heroin and opioid abuse takes a huge toll with Iowans every day. This summit is an excellent opportunity for the professionals who deliver treatment and prevention programs to come together with law enforcement to build partnerships that can effectively work together to impact these issues.” 

Award winning journalist, Sam Quinones, was the keynote speaker at the summit. His new book, “Dreamland: The True Tale of America’s Opiate Epidemic,” chronicles the rapid rise of prescription painkiller and heroin use in small town America. Federal and local authorities all over the county report the biggest drug epidemic today does not come from methamphetamines or cocaine, but heroin.  Quinones stated, “It should not be viewed as just an inner-city problem because huge profits are being made in suburbs across this country, and Iowa is not immune to this threat.”

Potential solutions to the national epidemic were highlighted at the summit, which included Prescription Drug Monitoring Programs (PDMPs). This program educates prescribers and tracks overuse of prescriptions through state-run electronic databases. Another solution is the use of Naloxone, a drug that counteracts opiate overdoses. Some state PDMPs require prescribers to report the dispensing of controlled prescription drugs to patients, and this information could be shared more broadly.

Additional education, greater access to treatment, enhanced prescription drug take-back programs, and oversight of pain clinics can also be part of the solution to this complex problem.

Dr. Corinne Peek-Asa, Director of the University of Iowa Injury Prevention Research Center said, “Interagency collaboration by law enforcement, the courts, healthcare, substance abuse treatment, public health, and education, among others, is essential to stem this growing tide of heroin and opioid abuse.”

Learn more about today’s heroin epidemic by visiting the Centers for Disease Control and Prevention at: http://www.cdc.gov/vitalsigns/heroin.

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CEDAR RAPIDS – The United States Attorney’s Offices for the Northern and Southern Districts of Iowa together with the University of Iowa’s College of Public Health and Injury Prevention Research Center are hosting a collaborative interagency symposium on November 12th to discuss the skyrocketing rates of death occurring in Iowa from prescription medication and heroin overdoses.  For the 13-year period beginning in 2000, Iowans dying from prescription medication overdoses increased twenty-fold.  Heroin overdose deaths experienced the same alarming rate of increase, jumping from one to 20 deaths per year.

The keynote speaker is award-winning journalist Sam Quinones, author of Dreamland: The True Tale of America’s Opiate Epidemic.  Participating in the symposium will be federal and state representatives who will be discussing medical, prevention and treatment perspectives.  Law enforcement and legal implications will be analyzed.  A parent’s perspective will detail how the death of a loved one impacts the family.

Event Details

WHEN:  Thursday, November 12, 2015

WHERE: University of Iowa College of Public Health (Callaghan Auditorium), 145 N. Riverside Drive, Iowa City, Iowa

TIME:  8:30 a.m. – 4:30 p.m. (Opening remarks begin at 8:30 a.m. followed by keynote.)

Parking instructions are attached.  heroin_-_parking_instructions.pdf (389.51 KB)    

Media wishing to attend should contact Assistant U.S. Attorney Steve Young no later than November 10th to confirm their attendance.  His contact information is contained in this advisory.

A press release will be provided and interview opportunities will be available.

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A man who wholesale distributed synthetic drugs commonly known as “K2” and “bath salts” was convicted by a jury after a 3-day trial in federal court in Cedar Rapids.

Muhammad Anwar, age 49, from West Des Moines, Iowa, was convicted of conspiring to distribute controlled substances and conspiring to launder drug money.  The verdict was returned yesterday afternoon following approximately 8 hours of jury deliberations.

Evidence at trial showed that Anwar served as a wholesale distributor of the illegal substances and that, for a period nearly two years, members of the conspiracy were purchasing between $100,000 and $1,000,000 per month from the illegal products’ manufacturers.  The products involved in the conspiracy were sold across Iowa, including to stores in Waterloo, Cambridge, Cedar Rapids, and Des Moines.

The K2 products contained two synthetic cannabinoids, XLR-11 and AB-FUBINACA, with effects similar to THC, the main psychoactive ingredient in marijuana, but they were marketed as potpourri or incense.  The products were also given highly suggestible trade names, such as “Mr. Nice Guy,” “Mr. Happy,” “Mind Trip,” “Diablo,” “Scooby Snax,” “Hydro,” “Lol,” and “777.”  The bath salt products included pentedrone, a synthetic cathinone, which is a stimulant similar to methamphetamine or cocaine.  The bath salts were marketed as having cleaning properties but were sold in small jars containing less than half a gram of powder.

Sentencing before United States District Court Chief Judge John A. Jarvey will be set after a presentence report is prepared.  Anwar was taken into custody by the United States Marshal after the verdicts were read and will remain in custody pending sentencing.  He faces a possible maximum sentence of 40 years’ imprisonment, $1,500,000 in fines, $200 in special assessments, and a lifetime of supervised release following any imprisonment.

The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Internal Revenue Service – Criminal Investigation; 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 Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; the Tri-County Drug Enforcement Task Force; the Federal Bureau of Investigation; the Department of Homeland Security; the Iowa Division of Criminal Investigation, Intelligence Division, the Des Moines Police Department; the Story County Sheriff’s Department; and was prosecuted by Assistant United States Attorneys Dan Chatham and Jacob Schunk.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR-15-2005-JAJ.

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CEDAR RAPIDS - Three local police officers were honored today by the United States Attorney’s Office for the Northern District of Iowa and the Drug Enforcement Administration (DEA) for their commitment to reducing drug abuse in their communities.  The recipients of the 2015 Enrique S. Camarena Award are Detective Jerry Blomgren and Officer David Schwindt of the Iowa City Police Department, and Sergeant David Dostal of the Cedar Rapids 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.

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 being this year’s award recipients.”

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

• Recognizing the harm that synthetic drugs were having on the Iowa City area, Detective Jerry Blomgren and Officer David Schwindt worked with several law enforcement entities and utilized a variety of investigative techniques to remove over 100 pounds of synthetic drugs from the street.  They also participated in numerous community meetings providing education regarding the hazards of synthetic drugs.Through their efforts, synthetic drugs are now virtually non-existent in the Iowa City area.

• As the supervisor of the Narcotics Division with the Cedar Rapids Police Department, Sgt. David Dostal has taken a leadership role in tackling the heroin problem that has plagued the Cedar Rapids community.  In addition to presenting at schools, community groups, and youth academies regarding the dangers of heroin and other illicit drugs, Sgt. Dostal took the lead in a high-profile heroin case that resulted in two federal indictments and which seriously disrupted the heroin drug trade in the Cedar Rapids area.

Michael J. Sanders, the Assistant Special Agent in Charge for the DEA commented on this year’s award, stating “It is an honor to be a part of such a well-deserved, distinguished award, presented in memory of fallen DEA Special Agent Enrique S. Camarena, who spent his career fighting against the powerful drug cartels in Mexico.  This eminent award exemplifies the outstanding investigative efforts of these three dedicated law enforcement officers in disrupting the illegal activities of these drug trafficking organizations and preventing the further distribution of these highly addictive, deadly drugs, in and around the Iowa City and Cedar Rapids communities.”

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.  This year, Red Ribbon Week runs from October 23 through October 31.

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Two brothers who conspired to distribute methamphetamine were convicted by a jury on October 28, 2015, after a three-day jury trial in federal court in Cedar Rapids.

Martin Lawrence, 52 and Troy Lawrence, 54, both from Cedar Rapids, Iowa, were convicted of conspiracy to distribute ice methamphetamine, distribution of ice methamphetamine, possession with intent to distribute ice methamphetamine, and witness tampering.  The verdict was returned following approximately three hours of jury deliberations.

The evidence at trial showed that Martin Lawrence headed a drug trafficking organization responsible for distributing pounds of ice methamphetamine, a highly pure, crystalized form of methamphetamine, in Eastern Iowa.  His brother, Troy Lawrence, assisted the organization by distributing ice methamphetamine in the Cedar Rapids area.  Investigators learned of the organization after Martin Lawrence’s step-son brought a stuffed animal containing methamphetamine to his elementary school.  The evidence at trial also established that Martin Lawrence obtained ice methamphetamine from Omaha and transported it back to the Cedar Rapids area where he relied on a network of individuals who distributed it on his behalf.  In addition, after their arrest on federal charges, both defendants instructed government witnesses to avoid contact with law enforcement in order to prevent these witnesses from testifying at trial.

Sentencing before United States District Court Judge Mark W. Bennett will be set after the preparation of the presentence reports.  Martin and Troy Lawrence remain in custody of the United States Marshal.  Both brothers face a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, over $10,000,000 in fines, $300 in special assessments, and at least five years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by the Cedar Rapids Police Department, Drug Enforcement Administration, Linn County Sheriff’s Office, and the Dubuque Drug Task Force.

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

The case file number is 15-CR-0069.

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A man who was upset at being passed over for an IT position at Buena Vista University and gained unauthorized access to several BVU computers, pled guilty on October 28, 2015, in federal court in Sioux City.

David Boyer, age 46, from Nebraska, was convicted of one count of unauthorized access to a protected computer.

In a plea agreement, Boyer admitted that from October 2009, through June 4, 2010, he intentionally accessed protected computers belonging to Buena Vista University without authorization.  Boyer accessed the computers and email accounts of the President, Vice President and other employees of Buena Vista University because he was angry at University for failing to promote him to be the head of the IT department, and hiring another individual for that position. As part of the plea agreement Boyer agreed to pay $100,000 in restitution, and signed a written apology to the University.

Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared.  Boyer remains free on bond previously set pending sentencing.  Boyer faces a term of imprisonment of not more than 1 year, a $10,000 fine, a $25 special assessment, and at least 1 year of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Timothy T. Duax and was investigated by the Iowa Department of Criminal Investigations.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-4109.

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CEDAR RAPIDS, IOWA – October is National Domestic Violence Awareness month as proclaimed by Presidential Proclamation. Domestic violence statistics are alarming.  Nearly one in four women and one in seven men have suffered severe physical violence by an intimate partner. Besides the physical violence endured, victims are often deprived of basic liberties, lose their autonomy and almost daily face threats to their health, safety and security. October is dedicated to reaffirming America’s commitment to ensuring that no one suffers the hurt and hardship that domestic violence brings.

To reaffirm this commitment, local and federal law enforcement agencies joined area domestic abuse service providers today at Waypoint Services to discuss, among other things, the federal laws that can be used to combat domestic violence in an effort to raise public awareness to the issue.

United States Attorney Kevin W. Techau stated, “Domestic violence continues to devastate the lives of Iowans across the state.  Experience tells us that the severity of such crimes frequently escalates over time, sometimes with deadly results. It is crucial for victims of domestic abuse to receive protection and assistance from law enforcement agencies and community organizations.  The United States Attorney's Office has and will work shoulder to shoulder with our law enforcement and community partners to help ensure all Iowans are safe in their homes and communities.”

Joining in this meeting and the press conference that followed were representatives from the Cedar Rapids and Marion Police Departments, Linn County Sheriff’s and County Attorney’s Offices, and several domestic abuse service providers and homeless shelters, including: Waypoint’s Domestic Violence Victim Services Program, Cedar Valley Friends of the Family Victim Shelter Program, Amani Culturally Specific Services for African Americans, Madge Phillips Center, Willis Dady Shelter, and the Catholic Worker House.

Domestic violence can result in physical injury, psychological trauma, and in severe cases, even death. The devastating physical, emotional, and psychological consequences of domestic violence can cross generations and last a lifetime.  Area service providers are key partners.

Tara Beck, Director of Waypoint’s Domestic Violence Victim Services Program stated,  “Waypoint’s Domestic Violence Victim Services Program continues to support upwards of 2000 victims of domestic violence every year.  Many of the individuals we support face very real threats of serious injury or death.  Community awareness about the dynamics of domestic violence, services available, and potential legal remedies is crucial in helping to create greater safety for victims and accountability for offenders.”

The Cedar Rapids Police Department worked closely with Cedar Valley Friends of the Family, the Linn County Attorney’s Office and other law enforcement representatives to initiate the use of an assessment tool when responding to abuse complaints.  Federal funding was secured to train responders how to assess a victim’s safety level when responding to domestic disturbances. A questionnaire will be used by responding officers as one tool to assess the circumstances. A series of questions will be asked of the alleged victim to aid in making an appropriate service referral to protect them from future harm.  Chief Wayne Jerman added, “We are recommitted to prevention and response efforts and to holding accountable all alleged abusers.”

Linn County Attorney Jerry Vander Sanden added that his office prosecutes approximately 500 domestic violence related cases each year.  “Many of our victims report that their abuse is not an isolated incident and that they have been enduring abuse for some time.  We recognize the seriousness of these offenses and know that all too often the degree of the abuse escalates, sometimes even ending in death.”  Vander Sanden added, “In the last 18 months there have been six homicides in Linn County alone that have arisen out of domestic relationships. We have to respect our victims, understand why reporting domestic violence is so difficult for some and why it is difficult in some cases for our victims to cooperate with the prosecution of these domestic abuse offenses.  It is our job to get justice for these people and send the message that domestic violence will not be tolerated.  The home is the last place a person should feel unsafe.”

Assisting victims of abuse with futures is equally important. The Iowa Coalition Against Domestic Abuse (ICADV) is offering 35 survivors of domestic abuse the opportunity to change their futures. The Alice Barton Scholarship Program will grant $1,000 scholarships to be used towards tuition, books, supplies, childcare or housing.  The Program works to empower survivors of domestic violence through education and job training. “Abuse wreaks havoc on a survivor's life. Receiving an education is one way to start putting the pieces back together,” stated Elizabeth Albright Battles, Administrator of the scholarship program for ICADV.  She also noted, “A survivor has an opportunity to see themselves in a new light, learn new skills, and meet new, supportive people. Through the Alice Barton Scholarship, we hope to encourage more survivors to follow their dreams.” Learn more about this program by emailing Elizabeth Albright Battles at lizb@icadv.org, or by calling 515-244-8028.

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A man who illegally re-entered the country was sentenced on October 20, 2015, to five months in federal prison.

Juan Barajas-Silvia, age 30, from Mexico, received the prison term after an August 12, 2015, guilty plea to one count of illegal re-entry of a removed alien.

At the guilty plea, Barajas-Silvia admitted he illegally re-entered the United States after being deported on June 13, 2008.   Barajas-Silvia came to the attention of Immigration and Customs Enforcement (ICE) officials on June 19, 2015, when he was arrested in Sioux County, Iowa for harassment.

Barajas-Silvia was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Barajas-Silvia was sentenced to five months imprisonment.  He must serve a 1-year term of supervised release.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Immigration and Customs Enforcement (ICE) and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-4045.

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CEDAR RAPIDS - On October 22, 2015, the team that investigated Jack and Peter DeCoster and their egg company following a national foodborne illness outbreak were honored at the 18th Annual Council of the Inspectors General on Integrity and Efficiency (CIGIE) awards ceremony in Washington D.C.  The team received the CIGIE Gaston L. Gianni, Jr. Better Government Award.  Among the team members honored was Assistant U.S. Attorney Peter Deegan with the United States Attorney’s Office for the Northern District of Iowa.

In 1978 the Inspector General Act established Offices of Inspectors General within federal agencies to combat fraud, waste, and abuse and to improve the economy and efficiency of program operations.  The Inspectors General community has nearly 14,000 professionals conducting audits, investigations, and inspections among other duties.  The CIGIE is composed of Inspectors General and government ethics and law enforcement officials.

The Gaston L. Gianni, Jr. Better Government Award is given annually to recognize persons who contribute to attaining the ideals of the Inspector General Act and work toward improving the public’s confidence in government.  

The Wright County Egg investigative team was honored based upon its exemplary work investigating and prosecuting Jack and Peter DeCoster and their Iowa egg company, Quality Egg LLC (Quality Egg), in the wake of one of the largest foodborne illness outbreaks in U.S. history.  As many as 56,000 people were sickened as a result of eating eggs associated with the outbreak.

In the course of its investigation, the team uncovered evidence that company personnel bribed an inspector of the U.S. Department of Agriculture (USDA) to release eggs that had been retained or “red tagged” for failing to meet minimum quality grade standards.  In a guilty plea, Quality Egg acknowledged that, on at least two occasions in 2010, its employees gave a cash bribe to a USDA inspector.  

As a result of the investigation and prosecution, both Jack and Peter DeCoster were sentenced to serve three months in prison and fined $100,000.  Quality Egg was ordered to pay a fine of $6.79 million and placed on probation for three years.  All three defendants were ordered to make restitution in the total amount of $83,008.19.  Quality Egg also agreed to forfeit $10,000 as part of its plea agreement.

“The 72 federal Inspectors General Offices have one of the most difficult and important jobs in all of government,” said Attorney General Loretta E. Lynch at the awards ceremony.  “It is a task basic to the functioning of our democracy: the task of ensuring that ours is a government not just of the people, but for the people – one sensitive to their concerns; responsive to their needs; and respectful of their sacrifices, whether in tax dollars or tours of duty.”

United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “I am very pleased to congratulate Assistant U.S. Attorney Peter Deegan and our federal partners at the U.S. Department of Agriculture, the Food and Drug Administration, the Federal Bureau of Investigation, and the Consumer Protection Division of the Department of Justice for receiving the CIGIE award. This recognition stems from multiple federal agencies working closely together to protect consumers by investigating, prosecuting and convicting Jack and Peter DeCoster and their egg company following one of the largest national foodborne illness outbreaks ever experienced in the country. This award highlights the importance of effective government oversight in the area of food safety.”

Other members of the Wright County Egg investigative team who were honored with the award are identified in the attached congratulatory notice from the Council of the Inspectors General on Integrity and Efficiency. team_award.pdf (88.64 KB)

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CEDAR RAPIDS – The United States Attorney’s Office for the Northern District of Iowa, Environmental Protection Agency and the State of Iowa have reached a proposed settlement resolving allegations of Clean Water Act violations by the City of Waterloo. The agreement will require the city to assess its sanitary sewer system and develop a master plan to eliminate unlawful sewer overflows, including discharges of sewage into the Cedar River and sewage backups into homes and businesses.

A proposed consent decree, lodged yesterday in U.S. District Court for the Northern District of Iowa requires Waterloo to perform comprehensive assessments of the capacity and condition of its waste water treatment facility and sanitary sewer system, which includes approximately 400 miles of sanitary sewer lines.

Based on the information developed by those assessments, by December 31, 2017, the city will be required to submit to the EPA and the State a master plan describing remedial measures necessary to address the sewer system’s problems with capacity, inflow and infiltration, with the goal of eliminating sanitary sewer overflows and bypasses. Following the master plan’s review and approval by the EPA and the State, Waterloo would then have until December 31, 2032, to complete all necessary work on its sewer system.

Additionally, the consent decree would require Waterloo to pay a total of $272,000 in settlement shared between the United States and the State of Iowa, complete a footing drain removal program that it has already begun, follow its sanitary sewer overflow response plan, and implement a Capacity, Management, Operations and Maintenance (“CMOM”) program for its sanitary sewer system.

The consent decree is subject to a 30-day public comment period and approval of the federal court before it becomes final. A copy of the consent decree is available online:  http://www.justice.gov/enrd/consent-decrees

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A man who possessed child pornography pled guilty yesterday in federal court in Cedar Rapids.

Adam Haacke, age 27, from Riceville, Iowa, was convicted of one count of possession of child pornography.  At the plea hearing, Haacke admitted that, between 2014 and 2015, he knowingly possessed child pornography on a hard drive.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Haacke was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing.  Haacke faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following any imprisonment.

This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Hancock County Sheriff’s Office, the Mitchell 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 15-2029.

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Cedar Rapids, Iowa – The United States Attorney’s Office for the Northern District of Iowa will join Waypoint Services with other service providers and local law enforcement to hold a press conference on October 29th, the purpose of which is to discuss federal laws used to combat domestic violence.  A Presidential Proclamation declared October as Domestic Violence Protection Month.

U.S. Attorney Kevin W. Techau will first meet with area service providers and local law enforcement then hold an on-site press conference following that meeting in an effort to raise public awareness about domestic abuse issues.

Event Details

When:  Thursday, October 29, 2015

Where:  Waypoint Services, 318 5th Street S.E., Cedar Rapids, Iowa

Time:  9:45 a.m.

A press release will be provided and interview opportunities will be available following the press conference.

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A synthetic drug wholesaler from Oklahoma pled guilty on October 20, 2015, in federal court in Cedar Rapids.

Ahmad Saeed, age 48, from Broken Arrow, Oklahoma, was convicted of conspiring to distribute controlled substances and conspiring to launder drug money.

In a plea agreement, Saeed admitted that between at least 2012 and continuing through at least June 2013, he acted as a wholesaler distributing synthetic drugs to convenience stores in Oklahoma, Iowa, and Missouri.  Saeed admitted he was supplied by regional drug suppliers in various locations, including suppliers in Kansas City, Missouri.  He also admitted that the packaging for the synthetic drug products he sold to the convenience stores bore some form of statement that the product was “not for human consumption.”  Despite the statements on the packaging, Saeed admitted he knew the synthetic drug products were for human consumption and that he actually intended the products to be consumed.

Saeed also obtained purported laboratory reports from his suppliers and provided them to his customers.  The reports claimed the synthetic drug products did not contain certain drugs listed in the federal drug schedules.  The drug lists on the reports were not comprehensive, and did not state what substance was allegedly in the supposedly tested product.  Saeed admitted he used these reports as a means to make it appear he was complying with federal drug laws, although he knew his conduct did not comply with those laws.

He also admitted that the store owners, including Chaudhry, often paid for the synthetic drug products by check.  Saeed admitted Chaudhry, or his representative, would leave the check’s “Pay to the order of” line blank, and the “memo” line would state “Loan.”  Saeed admitted that these transactions were designed to conceal the fact that the transactions were drug transactions.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Saeed was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing.  Saeed faces a possible maximum sentence of 40 years’ imprisonment, a $1,500,000 in fines, $200 in special assessments, and a lifetime of supervised release following any imprisonment.

The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Internal Revenue Service – Criminal Investigation, 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 Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; the Tri-County Drug Enforcement Task Force; the Federal Bureau of Investigation; the Department of Homeland Security; and the Iowa Division of Criminal Investigation, Intelligence Division, and was 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 CR15-2005-LRR.

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A man who possessed six firearms after having been convicted of a felony offense was sentenced Tuesday, October 20, 2015, to two years in federal prison.

Dustin Kirkpatrick, age 35, from Fairfax, Iowa, received the prison term after an April 24, 2015, guilty plea to being a felon in possession of firearms.

In a plea agreement, Kirkpatrick admitted that he was convicted in 2010 of the felony offense of Interference With Official Acts Involving a Dangerous Weapon.  At sentencing, evidence was presented that this conviction arose when Linn County Deputy Sheriffs attempted to take him into custody for purposes of a mental health commitment.  When the deputies told Kirkpatrick what they were doing, he pulled a 9mm handgun from his pocket.  Deputies were able to wrestle Kirkpatrick to the ground and disarm him without anyone being shot.

In the plea agreement, Kirkpatrick further admitted that on June 30, 2014, his father turned in to the Linn County Sheriff’s Office three handguns and three shotguns he possessed.  Later that same day, Kirkpatrick’s father called the Linn County Sheriff’s Office to report that his son had threatened a neighbor with a knife and when he (father) had intervened, Kirkpatrick then turned on him.  Linn County Sheriff deputies responded to the Kirkpatrick’s house with a tactical team and found him locked in a bedroom.  Kirkpatrick refused orders to open the door and surrender, so deputies forced the door open.  Kirkpatrick faced the deputies with a long-bladed knife in one hand and a hatchet in the other with arms raised above his head. He refused to drop the weapons in response to orders to do so.  Deputies were able to take Kirkpatrick into custody only after using a Taser on him.

At the sentencing hearing, Kirkpatrick moved for a reduced sentence, citing his mental health history of schizophrenia and depression.  Kirkpatrick argued that he was suffering from delusions at the time he confronted the deputies, and further incarceration would not help him.  The Court denied Kirkpatrick’s request, concluding that he posed a serious danger to the community because he was non-compliant in taking his medications, personally did not believe his mental health diagnosis, and had a history of violence and firearms.

Kirkpatrick was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Kirkpatrick was sentenced to 24 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Kirkpatrick 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 C.J. Williams and investigated by the Linn County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 14-CR-0084-LRR.

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CEDAR RAPIDS, IOWA –  Approximately 16,000 local students joined students from around the country this week in pledging to do their part to end gun violence.  The United States Attorney’s Office for the Northern District of Iowa, the Cedar Rapids and Marion Police Departments, and the Linn County Sheriff’s Office are partnering with local school districts to promote discussion of the impact of violence on youth in observance of the 19th annual Day of National Concern.  Each of the 17 middle and high schools in the Cedar Rapids, College Community, Marion Independent, and Linn-Mar School Districts participated.

More than 10 million young people have participated in this anti-violence campaign since it was initiated in 1996 through a Presidential Proclamation and unanimous United States Senate Resolution. The cornerstone of the initiative is the signing of a pledge in which students promise to never use a gun or violence to settle a personal dispute and to use their influence to keep their friends from doing the same. Nationwide, the pledge is often combined with school assemblies, homeroom activities, guest speakers, rallies, essay and poetry contests, displays of art work publicizing the toll of gun violence, and the beginning of many conversations about gun violence between students and adults.

Locally, each school planned activities that best fit the needs of the individual school, often involving student groups in planning the events.  Some examples of the activities in which students took part include:

• Washington High School students were addressed by a former student who was disabled as a result of gun violence. 
• Metro High School students read a gun violence statistic over the intercom during announcements and were asked to write essays about “the rest of their lives,” for famous figures who had their lives cut short by gun violence, imagining what they could have accomplished.
• Jefferson High School hosted a student-moderated panel, during which students engaged in a Q&A discussion including: U.S. Attorney Techau, Assistant U.S. Attorney Deegan, Cedar Rapids Police Chief Jerman, Linn County Sheriff Gardner, Linn County Attorney Vander Sanden, FBI Special Agent Reinwart, CEO of Horizons Mr. Cassell, and Jefferson High School Principal McDonnell.
• Marion High School hosted an informal “Lunch with the U.S. Attorney and Marion Police Chief” where they engaged in a casual discussion with students regarding the issue of gun violence and what students could do to make a difference.
• Vernon Middle School students received a presentation from an Assistant U.S. Attorney then signed the pledge on an enlarge pledge poster which will be prominently displayed in the school.
• Prairie Point Middle School and Ninth Grade Academy filmed a web-video in which the U.S. Attorney and Cedar Rapids Police Chief discussed the issue of youth and violence with the Student Council President.
• Prairie High School students developed awareness posters to hang around the school and approximately 50 students engaged in a conversation with an Assistant United States Attorney.
• Several middle schools in the Cedar Rapids and Linn-Mar districts broadened the message to focus on violence in general, and combined the pledge’s anti-violence message with anti-bullying and conflict-resolution speakers and lessons.

Several Assistant United States Attorneys and other local law enforcement officials attended and spoke at many of these events.  Students were also offered the chance to participate in the Day of National Concern and Student Pledge Against Gun Violence by tweeting at #GunPledgeCR.

Kevin W. Techau, U.S. Attorney for the Northern District of Iowa stated, “I commend all of the Cedar Rapids and Marion area students for taking the positive step of saying no to guns in schools. The NO Gun pledge and the discussion it generated in our area schools will have a positive impact in our community. We were proud to partner with Cedar Rapids and Marion Police Departments, Linn County Sheriff’s Office and the Cedar Rapids, Marion, Prairie, and Linn-Mar schools in the first ever Iowa observation of the Day of National Concern.”

Coordinator for the Student Pledge Against Gun Violence, Assistant U.S. Attorney Justin Lightfoot, joins students at Vernon Middle School before they sign the pledge.

Students at Prairie High School sign the pledge.

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A man who illegally bought and transported black rhino horns from Oregon to Iowa was sentenced in federal court yesterday to more than two years in federal prison.

James Hess, age 39, from Maquoketa, Iowa, received the prison term after a May 13, 2015, guilty plea to one count of violating the Lacey Act, which prohibits trafficking in certain wildlife, including wildlife determined to be endangered under the Endangered Species Act.  All species of black rhinos are endangered and it is illegal to traffic in black rhino horns across state lines.

In a plea agreement, Hess, who is a taxidermist, admitted that he contacted an individual in Oregon trying to sell a pair of black rhino horns online.  Hess reached an agreement with the seller in Oregon and personally traveled to Oregon to get the horns.  Hess told the seller he was reselling the horns to an individual living in Oregon.  Hess presented the seller with an Oregon driver’s license purporting to be for the buyer of the horns.  In reality, that individual had no involvement in the deal. After getting the horns, Hess shipped them back to Iowa and then gave them to Wade Steffen, a Texas resident, who shipped the horns to California.  Steffen gave Hess a portion of the profit Steffen expected to make from selling the horns in California.

Rhinoceros are herbivores of prehistoric origin and among the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and black rhinoceros are endangered.  Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 180 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of global rhinoceros populations. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching, rising from 13 in 2007 to 668 in 2012.

The United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “This office is committed to protecting the environment and natural resources of our country and world.  Cases like this one are important steps in curbing the market for black rhino horns and ensuring the survival of the species across the world.”

“This conviction and sentencing demonstrates the resolve of the U.S, Fish and Wildlife service to eliminate the illegal trade of Rhino horns in the United States,” said Edward Grace, Deputy Chief of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “Illegal wildlife trafficking is not just a problem in faraway countries but as demonstrated by this investigation can be found here in the heartland of America. The goal of "Operation Crash" is to eliminate this illegal market in the United State so that Rhino do not become extinct and continue to be a species that survives in the wild.”  

Hess was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  During the sentencing hearing, Chief Judge Reade stated of Hess that “by his actions he helped establish a market for these black rhino horns and that’s a serious offense against the planet.”  Hess was sentenced to twenty-seven months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Department of Interior, Fish and Wildlife Service, Special Investigations Unit (SIU) as a part of “Operation Crash,” a nationwide effort to investigate and prosecute those involved in the black market trade of endangered rhino horns.  “Operation Crash” is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, with assistance from other federal and local law enforcement agencies.

Court file information is available at https://ecf.iand.uscourts.gov/.  The case file number is 15-CR-41.

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A man who distributed heroin to a user who nearly died from an overdose was sentenced October 19, 2015, to fourteen years in federal prison.

Marcus DeJohn Wallace, age 20, from Cedar Rapids, Iowa, received the prison term after a June 8, 2015, guilty plea to distribution of heroin resulting in serious bodily injury.

At the guilty plea hearing, Wallace admitted that on February 24, 2015, he distributed $50 worth of heroin to a person in the parking lot of a business on Edgewood Road.  He also admitted that the person to whom he had sold the heroin took it to a nearby vehicle, where another person was waiting..  Both individuals used the heroin Wallace had sold while in the automobile. Both immediately overdosed and lost consciousness after using it.  The driver’s head slumped forward activating the horn.  A passerby heard the horn honking, saw the two unconscious individuals, and called 911.  When paramedics arrived, the passenger was able to be revived without medical intervention.   The driver was totally unresponsive until paramedics repositioned the driver’s head to open his airway.  Wallace admitted that without medical intervention by the paramedics, the driver was at a substantial risk of anoxic brain injury and death as a result of using the heroin Wallace distributed.

Wallace was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Wallace was sentenced to 168 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.

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

The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the 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 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 15-CR-00025-LRR.

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A woman who committed Social Security Fraud for approximately eleven years was sentenced today in federal court in Cedar Rapids.

Angela Carmichael, age 49, from Aplington, Iowa, received the prison term after a July 2, 2015, guilty plea to one count of Supplemental Security Income Benefits Fraud.

In her plea agreement, Carmichael admitted that, between June 2003 and June 2014, she hid that she was living with her husband from the Social Security Administration in order to continue to receive Supplemental Security Income benefits.  Carmichael admitted she lied about not living with her husband in order continue to receive benefits to which she would not otherwise have been entitled.  During this period of time, Carmichael received over $68,000 in benefits.  At sentencing, Carmichael also admitted she fraudulently received nearly $50,000 in Medicaid and food stamp benefits from the State of Iowa at the same time.  

Carmichael was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Carmichael was sentenced to ten months’ imprisonment.  A special assessment of $100 was imposed and she was ordered to make $117,938.84 in restitution.  She must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Social Security Administration Office of Inspector General.

Court file information is available at https://ecf.iand.uscourts.gov/.  The case file number is 15-CR-2010.

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A felon who was found in possession of a .357 magnum revolver pled guilty yesterday in federal court in Cedar Rapids.

Fabian Taylor, age 28, from Marion, Iowa, was convicted of being a felon in possession of a firearm.  In a plea agreement, Taylor admitted that on July 20, 2014, he knowingly possessed a .357 magnum revolver in Cedar Rapids.  At a detention hearing, a federal agent with the FBI Safe Streets Task Force testified about this matter indicating that on July 20, 2014, authorities responded to multiple 911 calls reporting “shots fired.”  They were informed that witnesses heard three or four shots coming from a rear passenger door of a white Hummer, which had fled the area.  Officers located the automobile near the scene of the shooting and gave chase.  The Hummer drove down an alley before ultimately pulling over.  Taylor was seated in the right rear passenger seat.  One of the other occupants of the automobile later testified that Taylor was the person who shot out of the window at a person with whom he was having a dispute.  During the automobile chase, Taylor threw the .357 magnum out of the window as they drove down the alley, which officers later recovered.  Taylor was a felon at the time he possessed the .357 magnum, having been convicted in 2006 of the offense of Burglary in a Minnesota state court.

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

The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department and the FBI Safe Streets Task Force.  Court file information: https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-0057-LRR.

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A man who distributed a mixture of heroin and fentanyl to another individual who then overdosed in a convenience store pled guilty on October 15, 2015, in federal court in Cedar Rapids.

David Joseph Hudson, age 31, from Hiawatha, Iowa, was convicted of one count of distribution of heroin and fentanyl.

In a plea agreement, Hudson admitted that in January 2015, he distributed heroin to another individual (identified as R.R.) in a convenience store bathroom.  R.R. prepared and injected the heroin in the bathroom, while Hudson was present.  Hudson and R.R. left the bathroom and approached the store counter, where R.R. overdosed and collapsed.  R.R. was in and out of consciousness until and after paramedics arrived.  When R.R. would lose consciousness, his breathing would be slow and paramedics noticed snoring respirations (indicating some sort of airway obstruction).  Paramedics eventually administered Narcan, an opiate antidote, after which time R.R. became more alert.  Hudson admitted that after R.R. overdosed, he went through R.R.’s pockets, looking for the remaining drugs (which he did not find) and R.R.’s cell phone, which he took before he left the scene.  Other people helping to revive R.R. found a small amount of drugs and packaging next to R.R.  Laboratory testing of this substance determined it actually contained heroin and another powerful opiate, fentanyl.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Hudson remains in custody of the United States Marshal pending sentencing.  Hudson faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and lifetime of supervised release following any imprisonment.

The case was investigated by the Cedar Rapids 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.  The case is being prosecuted by Assistant United States Attorney Dan Chatham.

Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-78-LRR.

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A man who received and possessed child pornography pled guilty on October 13, 2015, in federal court in Cedar Rapids.

Michael Cottrell, age 43, from Reinbeck, Iowa, was convicted of one count of receipt of child pornography and one count of possession of child pornography.  At the plea hearing, Cottrell admitted that, between 2012 and 2014, he knowingly received child pornography and possessed it on his computer.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Cottrell remains in custody of the United States Marshal pending sentencing.  Cottrell faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.

This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, 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 15-82.

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A woman who filed more than 150 fraudulent tax returns over a three year period and stole the identity of a woman to file a fraudulent tax return was sentenced on October 13, 2015, to more than five years in federal prison.

Gwendolyn Murray, age 34, from Cedar Rapids, Iowa, received the prison term after a June 8, 2015, guilty plea to one count of theft of government property and one count of aggravated identity theft.

In a plea agreement, Murray admitted she, without lawful authority, used another person’s name, social security number, and signature on a fraudulent tax return she filed in January 2012.  Murray further admitted she then stole from the government more than $6,000 when she cashed the refund check.  She also admitted to filing more than 150 fraudulent tax returns between April 2010 and April 2013, claiming refunds to which the taxpayer named in the return was not entitled.  Her criminal activity resulted in the Internal Revenue Service paying out more than $350,000 in fraudulent tax refunds to her.

Murray was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Murray was sentenced to sixty-one months’ imprisonment.  A special assessment of $200 was imposed, and she was ordered to make $386,515 in restitution to the Internal Revenue Service.  She must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Special Agent Andrew M. Thornton, Special Agent in Charge of IRS Criminal Investigation.  “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers and undermines the U.S. Treasury.”

Murray was released on conditions of release previously set and is to surrender to the United States Marshal on November 3, 2015.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service.

Court file information is available at https://ecf.iand.uscourts.gov/.  The case file number is 15-CR-00015.

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The last two members of the Jamal Dean Getaway Team were sentenced today in federal court for their roles in obstructing a joint state-federal investigation and search for Jamal Dean in April and May of 2013.

“The arrests, convictions and sentencing’s in both the Jamal Dean case and the related Jamal Dean Getaway Team cases are the result of a law enforcement partners at the federal, state and local levels working together to help make Woodbury County and the surrounding region safer for everyone," said U.S. Attorney for the Northern District of Iowa Kevin W. Techau.

Techau also noted, “We will continue to work side-by-side with our law enforcement partners to vigorously investigate and prosecute those who break the law and particularly those who commit violent offenses.”

Evette Morris-Hernandez, age 34 (a F-13 gang member), of Sioux City, Iowa, and Esteban Hernandez, age 36 (her husband at the time), of Mercedes, Texas, received the sentences after guilty pleas to conspiring to defraud the United States by interfering with the federal investigation of and search for Jamal Dean.

Evidence presented at their guilty plea and sentencing hearings revealed that from about April 30, 2013 to May 5, 2014, the pair moved Jamal Dean from Ingmar Hernandez’s South Sioux City, Nebraska home, to Anna Baker’s home on the Winnebago Indian reservation, to the Palmer House Hotel in Sioux City, Iowa, and ultimately to within 70 miles of the Texas/Mexico Boarder to help him escape the joint state and federal investigation and manhunt of which he was then the subject.

Evette Morris-Hernandez and Esteban Hernandez were sentenced today in Sioux City by United States District Court Judge Mark W. Bennett.  Evette Morris-Hernandez was sentenced to 41 months’ imprisonment.  A special assessment of $100 was imposed.  She must serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Esteban Hernandez was sentenced to 6-months’ imprisonment.   A special assessment of $100 was imposed. He must serve a one-year term of supervised release after the prison term.  There is no parole in the federal system.

Both defendants will surrender to the Bureau of Prisons on a date yet to be set by the Court.

The case was prosecuted as a part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations; the United States Marshal’s Service; the Federal Bureau of Investigation, the Iowa Department of Public Safety, the Iowa Department of Transportation, Bureau of Investigation & Identity Protection, the Iowa Division of Criminal Investigations, the Nebraska Department of Public Safety; the Texas Department of Public Safety, the Nebraska State Patrol, the Tri-State Drug Task Force, the Woodbury County, Iowa Sheriff’s Office; the Dakota County, Nebraska Sheriff’s Office; the Sioux City, Iowa Police Department, the South Sioux City, Nebraska Police Department; the North Sioux City, South Dakota Police Department, the Sergeant Bluff, Iowa Police Department, and the Dakota County, Nebraska County Attorney’s Office, and the Woodbury County, Iowa County Attorney’s Office.  The case was prosecuted by Assistant United States Attorney Forde Fairchild.

Court file information is available at https://ecf.iand.uscourts.gov.  The case file number is 14-4088.

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A man who worked at a head shop in Iowa City pled guilty to federal drug charges on October 8, 2015, in federal court in Cedar Rapids.

Wayne Christopher Watkins, age 40, from Peoria, Illinois, was convicted of conspiring to manufacture and distribute a synthetic drug called AB-FUBINACA.  The owner of Pipe Dreamz in Iowa City, Robert Carl Sharp, pled guilty on October 5, 2015.

In a plea agreement, Watkins admitted that Sharp was released from federal prison in 2012, and shortly thereafter began selling, and later manufacturing, smokeable synthetic cannabinoid products which are commonly known as “Spice,” “incense,” or K2.  Watkins initially worked for Sharp at a store in Peoria, Illinois, called Smoke N Ink.  Both men moved to Iowa in 2013 when Sharp opened a head shop in Iowa City called Pipe Dreamz.  Sharp would order synthetic cannabinoid chemicals and also purchase bulk quantities of dried damiana leaves, a plant material that resembles dried marijuana.  Watkins admitted Sharp would purchase synthetic cannabinoid chemicals, packaging materials, and inert plant material (typically damiana leaf), from various suppliers and then Sharp and defendant would manufacture synthetic cannabinoid products from the materials.  Watkins admitted he would dilute the synthetic cannabinoid chemical in acetone, and then spray the mixture onto the damiana leaves.  Watkins would then add some flavoring and package the substances into the various brands sold by Sharp.

Watkins and Sharp sold these products in packets that marketed the substances as incense, and contained a warning that the products were “not for human consumption,” although both men admitted they knew the products were actually intended for human consumption.  The synthetic cannabinoids in these products were actually research chemicals that have not been tested or approved as safe for human consumption, and which have unpredictable short-term effects and unknown long-term effects on users.

On May 7, 2014, Sharp’s store, his house and storage unit in Center Point, Watkins’s house in Cedar Rapids, and the Pipe Dreamz store in Iowa City were all searched by federal law enforcement.  During the searches, officers seized thousands of synthetic cannabinoid products, including the sprayed-on plant variety and a liquid form of the synthetic cannabinoids that was designed for use in e‑cigarettes.  Officers seized an active manufacturing operation in Watkins’s house, as shown in photographs admitted at an earlier hearing. watkins_exhibit_photos.pdf (30.96 MB)

Watkins claimed Sharp told him that the chemicals they were using were legal.  Despite those statements from Sharp, however, he admitted he believed there was a high probability that the substances he received and distributed were regulated by federal drug laws, but took deliberate actions to avoid learning of the true identity of the substances.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Watkins remains in the custody of the United States Marshal pending sentencing.  Watkins faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime of supervised release following any imprisonment.

The case was investigated by the Iowa City Police Department and 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 Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service.  The case is being prosecuted by Assistant United States Attorney Dan Chatham.

Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-31-1-LRR.

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Sioux City, Iowa – The United States Attorney’s Office for the Northern District of Iowa together with several federal and state law enforcement agency representatives will hold a press conference on October 13th to discuss the events leading to the shooting of a Sioux City police officer and the activities that followed to bring those involved in an attempt to obstruct justice and prevent the shooter’s capture.

U.S. Attorney Kevin Techau will be present at the press conference.  He will be joined by Sioux City Chief of Police Douglas Young, Woodbury County Sheriff David Drew and County Attorney Patrick Jennings, and other county, state and federal law enforcement representatives.

Event Details

When:  Tuesday, October 13, 2015

Where: Sioux City Police Department (Davidchik Hall, First Floor), 601 Douglas Street, Sioux City, Iowa

Time: 5:00 p.m.  (Or one hour after the last sentencing, whichever first occurs.)

A press release will be provided and interview opportunities will be available after the press conference.

A man who injected a woman with heroin that caused her to overdose pled guilty on October 7, 2015, in federal court in Cedar Rapids.

Richard Roberts, age 37, from Cedar Rapids, Iowa, was convicted of distribution of heroin.

In a plea agreement, Roberts admitted that, in August 2015, he injected a woman with heroin, after which the woman lost consciousness.  Roberts called 911 to obtain medical assistance for the woman.  When paramedics arrived, she was unconscious with labored breathing and a weak pulse.  Emergency responders had to revive the woman with Narcan, an opiate antidote.  Roberts admitted that, without the medical intervention by emergency responders, the woman had a substantial risk of anoxic brain injury and death.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Roberts remains in custody of the United States Marshal pending sentencing.  Roberts faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime of supervised release following any imprisonment.

The case was investigated by the Cedar Rapids 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.  The case is being prosecuted by Assistant United States Attorney Dan Chatham

Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-79-LRR.

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A woman who lied before the grand jury regarding another person’s possession of firearms pled guilty today in federal court in Cedar Rapids to the crime of perjury.

Danielle Ayers, age 41, from Atkins, Iowa, was convicted of one count of committing perjury before a federal grand jury.  At the plea hearing, Ayers admitted she lied under oath in the grand jury.  When asked if she had seen another particular person with a firearm in the past five years, she said no.  Ayers admitted that was a lie and that she had, in fact, seen that person with a firearm in the last five years.   

“Lying to a federal grand jury goes to the heart of the criminal justice system,” said United States Attorney Kevin W. Techau.  “We will vigorously prosecute any person we find knowingly lies to the grand jury.”

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Ayers remains subject to home confinement and electronic monitoring pending sentencing.  Ayers faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Marion Police Department, the Iowa Division of Criminal Investigation, and the Linn County Sheriff’s Office.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-043-LRR.

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CEDAR RAPIDS, IOWA—Since mid-September several Iowa law enforcement agencies have been awarded an Edward Byrne Memorial Justice Assistance Grant by the United States Department of Justice’s Office of Justice Programs (OJP). OJP provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the-art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies.  The following Iowa agencies receiving grant funding:

• The Dubuque Police Department was awarded $61,230 to develop, implement, and promote a Body Worn Camera (BWC) program designed to record law enforcement interaction with members of the community.

• The Fort Dodge Police Department and the Webster County Sheriff’s Office were awarded $18,176 to purchase equipment and expand training in officer safety and effective crime scene processing.

• The Sioux City Police Department and the Woodbury County Sheriff’s Office were awarded $19,910 and $19,911, respectively to support the Tri-State Drug Task Force, provide specialized training, and purchase updated equipment.

• The Cedar Rapids Police Department and the Linn County Sheriff’s Office were both awarded $23,190.50. The Police Department will use its grant money to purchase 28 BWCs.  The Sheriff’s Office will use its grant money to purchase five mobile computers/tablets, which will increase deputy efficiency, accuracy and reduce on-air communications between dispatch and staff.

United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “These grants will support the common federal, state and local goal of strengthening and improving law enforcement skills, capabilities, and procedures.”         

OJP works in partnership with the justice community to identify the most pressing crime-related challenges confronting the justice system and provides information, training, coordination, and innovative strategies and approaches for addressing these challenges. Learn more about the Office of Justice Programs at: http://ojp.gov/.

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CEDAR RAPIDS – Two former Anamosa State Penitentiary correctional officers have been charged with federal offenses, while two others will be charged in state court.  The criminal activity surrounding these charges involved accepting money to smuggle cell phones into the prison for prisoner use, being unlawful drug users in possession of firearms, and possessing controlled substances.  Anamosa penitentiary officials learned of this illegal activity and immediately began an investigation, enlisting the assistance of the Iowa Division of Criminal Investigation.  The Federal Bureau of Investigation also joined in the investigation.

Two former correctional officers have been charged with federal crimes. Garrett Barton, age 29, from Anamosa, Iowa, has been charged by Criminal Information to one count of Hobbs Act extortion, that is taking money to smuggle cell phones into the prison for prisoner use, and to one count of being an unlawful drug user in possession of firearms.  Ethan Darrow, age 29, also from Anamosa, Iowa, was also charged by Criminal Information with one count of being an unlawful drug user in possession of firearms.

In agreements with the United States, two other former correctional officers, Marques Maryland, age 38, from Cedar Rapids, Iowa, and Seth Vogel, age 28, from Marion, Iowa, have agreed to plead to state charges of possessing controlled substances.  These pleas will be made in Jones County, Iowa.

United States Attorney for the Northern District of Iowa Kevin W. Techau stated, “Prison safety depends on prison personnel acting with honesty and integrity… smuggling drugs and other contraband to inmates undermine that safety and make an inherently dangerous environment more dangerous.”

In connection with this investigation, Samuel Foster, age 29, from North Liberty, Iowa, was charged by Criminal Complaint with being an unlawful drug user in possession of a firearm. He was not employed by the Anamosa State Penitentiary.

­The public documents allege that in 2014, while employed as a correctional officer at the Anamosa State Penitentiary, Garrett Barton used his position to smuggle cell phones into the Penitentiary for inmates in exchange for cash payments.  Cell phones are considered contraband which inmates are prohibited from possessing.  In the course of investigating this activity, authorities also learned that Barton possessed firearms while being an unlawful user of marijuana and prescription controlled substances not prescribed to him.  He also traded controlled substances for other controlled substances with other correctional officers.  The investigation further revealed former correctional officer Ethan Darrow used controlled substances, including marijuana, cocaine, and prescription controlled substances, and used and traded drugs with Barton and other correctional officers, including Seth Vogel.  Barton also conspired with his source of drugs, Samuel Foster, to sell marijuana to correctional officer Marques Maryland.  Barton, Darrow, Vogel and Maryland were unlawful drug users in possession of firearms when they served guard tower duty at the prison while possessing AR-15 assault rifles.   

Samuel Foster was charged by criminal Complaint filed in federal court on October 1, 2015.  The Complaint alleges that in April 2015, North Liberty Police Officers executed search warrants at his residence and storage garage located in that city.  Officers recovered, among other things, approximately 530 grams of marijuana, 156 hydromorphone pills (a Schedule II controlled substance), drug use paraphernalia, and a stolen .32 caliber revolver.  Another search of Foster’s storage garage in Cedar Rapids, Iowa, uncovered approximately 123 grams of marijuana and a stolen .22 caliber rifle.  The Complaint alleges that Foster admitted to being an unlawful user of marijuana and to selling it for between $3,200 and $3,300 per pound.  The Complaint summarizes text messages between Foster and others, including Barton, regarding selling marijuana to Barton and Maryland.

 As for Garrett Barton, a Criminal Information was filed on this date.  He is scheduled to make his initial appearance and enter a guilty plea to both counts on October 13, 2015. Barton faces a possible maximum sentence of 30 years’ imprisonment, a $500,000 fine, $200 in special assessments, and eight years of supervised release following any imprisonment.

Ethan Darrow entered his guilty plea in federal court on October 5, 2015.  Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Darrow remains free on conditions set by the court pending sentencing.  Darrow faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.

 Marques Maryland and Seth Vogel are required by the terms of their federal agreements to enter guilty pleas to possession of controlled substances in the Iowa District Court for Jones County.  Maryland and Vogel each face a possible maximum state sentence of six-months’ imprisonment and a fine of up to $1,000.

Samuel Foster appeared yesterday in federal court in Cedar Rapids and was ordered detained by Chief Magistrate Judge Jon S. Scoles pending presentation of the case to the federal grand jury.  Foster faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.­

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 C.J. Williams and Special Assistant United States Attorney Erin Eldridge, and was investigated by Anamosa State Penitentiary, the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and North Liberty Police Department.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number for the federal court filings are: Garrett Barton (15-CR-00091); Ethan Darrow (15-CR-00090); and, Samuel Foster (15-mj-296).

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An officer of Country Bancorporation who embezzled more than $800,000 from banks controlled by the company pled guilty today in federal court in Cedar Rapids.  

Heidi Wagler, age 50, from Wayland, Iowa, was convicted of one count of embezzlement by a bank officer.

In a plea agreement, Wagler admitted that from June 2004 through October 2013, while she was an officer of Country Bancorporation, she embezzled at least $864,835 from the company.  At the time Wagler was an officer of Country Bancorporation. The company controlled seven banks and Wagler was in charge of doing payroll for each of these banks.  She was also a member of the Board of Directors of one of the banks and her husband, Russell Wagler, was the Director, President, and CEO of that same bank.  Wagler further admitted that, although she was entitled to compensation from Country Bancorporation for doing the payroll for its banks, she paid herself excess compensation from each of the seven banks at various times over the course of her embezzlement.  She also admitted that, from January 2008 through November 2013, she paid her husband additional compensation to which he was not entitled.  

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Wagler remains free on conditions of release set by the court pending sentencing.  She faces a possible maximum sentence of 30 years’ imprisonment, a fine of up to twice the loss resulting from her offense, a $100 special assessment, and five years of supervised release following any imprisonment.­ Wagler could also be ordered to pay restitution to any victims.

The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the FBI and FDIC.

Court file information is available at https://ecf.iand.uscourts.gov/.  The case file number is 15-CR-00089.

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A man who owned and operated a head shop in Iowa City pled guilty on October 5, 2015, in federal court in Cedar Rapids.

Robert Carl Sharp, age 37, from Peoria, Illinois, was convicted of conspiring to manufacture and distribute a synthetic drug called AB-FUBINACA.  He also was convicted of possessing with intent to distribute it.

Court documents reflect that in 2012, in Peoria, Illinois, Sharp began selling, and later manufacturing, smokeable synthetic cannabinoid products which are commonly known as “Spice,” “incense,” or K2.  Sharp sold these products in packets that marketed the substances as incense, and contained a warning that the products were “not for human consumption,” although Sharp knew the products were actually intended for human consumption.  The synthetic cannabinoids in these products were actually research chemicals that have not been tested or approved as safe for human consumption, and which have unpredictable short-term effects and unknown long-term effects on users.

Sharp eventually moved to Iowa and opened a head shop called Pipe Dreamz in downtown Iowa City.  He employed another individual, Wayne Watkins, to manufacture synthetic cannabinoid products called “Gods of Aroma,” “Bizarro,” “AK-47 Cherry Popper,” “Bling Bling Monkey,” “Super Nova,” and “Darkness.”  Sharp would order synthetic cannabinoid chemicals and also purchase bulk quantities of dried damiana leaves, a plant material that resembles dried marijuana.  Watkins would dilute the synthetic cannabinoid chemical in acetone, and then spray the mixture onto the damiana leaves.  Watkins would then add some flavoring and package the substances into the various brands sold by Sharp.

On May 7, 2015, Sharp’s store, his house and storage unit in Center Point, Watkins’s house in Cedar Rapids, and the Pipe Dreamz store in Iowa City were all searched by federal law enforcement.  During the searches, officers seized thousands of synthetic cannabinoid products, including the sprayed-on plant variety and a liquid form of the synthetic cannabinoids that was designed for use in e‑cigarettes.  Officers seized an active manufacturing operation in Watkins’s house.

At the plea hearing, Sharp stated he was told by the individuals from whom he purchased the substances that he was buying legal chemicals.  He admitted at the plea hearing, however, that despite those statements from his suppliers, he believed there was a high probability that the substances he received and distributed were regulated by federal drug laws, but took deliberate actions to avoid learning of the true identity of the substances by refusing to get them tested by a laboratory.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Sharp remains in the custody of the United States Marshal pending sentencing.  Sharp faces a possible maximum sentence of 60 years’ imprisonment, a $3,000,000 fine, $300 in special assessments, and a lifetime of supervised release following any imprisonment.  Sharp also agreed to forfeit $200,000 in proceeds from the sale of illegal drugs.

The case was investigated by the Iowa City Police Department and 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 Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service.  The case is being prosecuted by Assistant United States Attorney Dan Chatham.

Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 15-CR-31-1-LRR.

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