Southern District of Iowa

DES MOINES, IA – On July 15, 2016, Linda Lee Clark, 68, of Corydon, Iowa, waived indictment and pleaded guilty to an United States Attorney’s Information to one count of embezzlement by a credit union employee, announced United States Attorney Kevin E. VanderSchel. Clark admitted to embezzling $2,494,809 of funds from the SCICAP Credit Union in Chariton, Iowa, from the time she began working there as a bookkeeper in 1978 until she resigned in August 2015. Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. As a result of Clark’s embezzlement, the Credit Union became insolvent and was forced into liquidation.

Clark faces a potential statutory sentence of up to thirty (30) years in prison, a fine of up to $1,000,000, and a term of up to three (3) years of supervised release to follow any term of imprisonment. As part of the plea agreement, Clark agreed to pay restitution. Sentencing is scheduled for 10:00 a.m. on November 15, 2016, before United States District Court Judge Rebecca Goodgame Ebinger at the United States Courthouse in Des Moines.

DES MOINES, IA – On July 7, 2016, Jeffrey Lewis DeWitt, 28, of Ottumwa, Iowa, was sentenced by United States Senior District Court Judge Robert W. Pratt to 24 months in federal prison for wire fraud and conversion of mortgaged property, announced United States Attorney Kevin E. VanderSchel. DeWitt was ordered to serve three years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $395,968.20 to eleven of his victims.

DeWitt pled guilty to the crimes on December 3, 2015. According to the plea agreement, DeWitt lied to induce a victim to obtain a bank loan, which DeWitt claimed would be used to purchase cattle that would be resold at a higher price, for a guaranteed profit. DeWitt sent the victim an email with details of the cattle he was purportedly purchasing, including the purchase price of the cattle, the resale price, the parties who would repurchase the cattle, and stated the cattle were guaranteed to be resold for a profit within three weeks. Unbeknownst to the victim, the details in the email were fictitious. DeWitt knew the victim needed the fabricated information to justify the loan to the bank, and the bank did lend the victim funds in reliance of DeWitt’s fabricated email. DeWitt used the funds to purchase cattle for himself, but only gave his victim a check that was returned for insufficient funds.

DeWitt also admitted in the plea agreement to selling livestock and hay he had mortgaged to the Farm Service Agency ("FSA") of the United States Department of Agriculture without authorization. He deposited the funds into accounts held by his parents to avoid detection by FSA. He admitted to selling over $200,000 of collateral without authorization.

The plea agreement also detailed a series of additional fraudulent transactions with as many as eleven individual victims. DeWitt admitted to using the proceeds of the unauthorized sales of collateral and the proceeds from the bank loan scheme to fund fraudulent cattle deals. He told other farmers he would purchase cattle, seed, and hay on their behalf, but did not do so, and at times produced false invoices and checks to support his claims.

This matter was investigated by the United States Department of Agriculture and the Federal Bureau of Investigation, with assistance from the Davis and Wapello County Sheriffs’ Offices. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DES MOINES, IA – On June 23, 2016, Bradley J. Prucha, 39, of West Des Moines,

Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to a total of 840

months, or 70 years, in federal prison for executing a multistate retail theft scheme, producing

and possessing child pornography, distributing Xanax to minors, and attempting to bribe minor

witnesses to change their trial testimony, announced United States Attorney Kevin E.

VanderSchel. Prucha was previously convicted by a Southern District of Iowa jury on March 1,

2016, on multiple counts, including conspiracy, mail fraud, production of child pornography,

possession of child pornography, distribution of Xanax to persons under the age of twenty-one,

and witness tampering. Prucha was ordered to serve a lifetime term of supervised release to

follow his release from prison, pay restitution to the business victims, and $1,900 to the Crime

Victims’ Fund.

Over the course of a six day jury trial, the government presented evidence showing

Prucha was the leader of a retail theft scheme from at least October 2013 until his arrest on June

4, 2015. To execute his scheme, Prucha printed UPC bar code stickers, and then placed the

stickers on items in stores so they would ring up at a lower price. He then returned the items to

stores for their full price, or sold them online through eBay, Craigslist, or directly to bulk buyers.

Prucha committed the thefts between Florida and Iowa, where he maintained separate residences,

and in Nebraska and Illinois. At trial, witnesses described how Prucha recruited adults and

teenagers to place stickers on items, purchase them for the fraudulent price, and make the returns

so as to avoid detection himself. At the time Prucha orchestrated and executed his retail bar

coding scam, he was on probation for having committed a nearly identical bar code switching

scheme in Florida. Prucha admitted to committing the bar code fraud scheme during his trial

testimony.

The evidence at trial also established Prucha used teenage girls to commit thefts for him,

and paid the girls to have sex with him using proceeds from the scheme as well as Xanax. One

witness testified she committed thefts for Prucha starting as young as fifteen years old; multiple

witnesses testified Prucha’s nephew also committed thefts for him from an even younger age. At

trial, the minor victims testified that Prucha gave them Xanax and money to have sexual relations

with him. Prucha filmed three sexually explicit videos of himself engaged in sexual activity with

minors. He maintained possession of the videos on his electronic devices and multiple witnesses

testified that Prucha showed them the videos. Testimony and Prucha’s own recorded statements

played at trial, proved he threatened the victims with physical harm when one victim learned

about the video of her (which had been taken without her knowledge) and threatened to tell the

police.

A former inmate at the Polk County Jail testified that Prucha directed him to offer money

to the minor witnesses for them to sign false affidavits, which would have contradicted their

statements and the evidence in the case. Prucha provided the inmate, someone he knew was a

convicted sex offender, with personal details about the minor witnesses, including hand-drawn

maps to the girls’ homes, their telephone numbers, details about their personal lives, names of

family members, and the hours and location of their jobs.

“The evidence in this case showed Bradley Prucha is a dangerous predator who

manipulated vulnerable teenage girls to commit fraud for him and to have sex with him by

providing them Xanax, money and gifts, and through threats, intimidation, and emotional and

mental manipulation,” said United States Attorney Kevin E. VanderSchel. “The significant term

of incarceration Prucha will serve is appropriate and necessary to protect the public and other

potential victims.”

At sentencing, Chief United States District Judge John A. Jarvey imposed a total sentence

of 840 months. Prucha received the maximum term of imprisonment of five years as to the

conspiracy count, 20 years as to six mail fraud counts, 20 years for possession of child

pornography, and 10 years for the distribution of Xanax to persons under the age of twenty-one.

He additionally was sentenced to 40 years imprisonment on each count of production of child

pornography, a consecutive thirty years for committing those offenses while required to register

as a sex offender, and 30 years for each of the four counts of witness tampering.

This matter was investigated by the Federal Bureau of Investigation, with assistance from

the Asset Protections teams at various retailers, including Barnes & Noble, Walmart, Toys R Us,

and Best Buy. The case was prosecuted by the United States Attorney’s Office for the Southern

District of Iowa.

DAVENPORT, IA- On June 16, 2016, Thomas Alexander Davis III, age 40, of Indiana, was sentenced by Chief United States District Court Judge John A. Jarvey to life imprisonment for bank robbery announced United States Attorney Kevin E. VanderSchel. A jury found Davis guilty of this offense on February 11, 2016. Davis had been previously convicted in 1995 of armed bank robbery in the Southern District of Indiana, and robbery with a deadly weapon in Hancock, Indiana. At sentencing the government presented evidence, including certified records and testimony from a FBI Special Agent, an Indiana Deputy U.S. Marshal, a FBI-Biometrics Division Certified Ten Print Examiner, and the Chief of Police from Greenfield, Indiana, to identify Davis as the same person who committed these prior two offenses. Because these two prior robbery convictions qualified as "serious violent felonies" under a federal sentencing statute, this third conviction for robbery of the US Bank mandated life imprisonment. Davis was also ordered to serve five years on supervised release, pay restitution, and a $100 special assessment to the Crime Victims Fund.

The evidence at trial in this case showed that on November 28, 2012, Davis entered the US Bank in Muscatine. Davis presented the teller with a black bag with an Angry Birds cartoon, demanded money, and displayed a handgun. A bank customer was also present at the teller counter during the robbery. The teller placed US Bank cash in the bag. Davis fled the bank and escaped in a black Cadillac driven by Stacey Fincher, also of Indiana. Davis and Fincher drove back to Indiana. Davis was arrested on February 12, 2015, in Indiana. On April 8, 2016, Stacey Fincher was sentenced to a deferred judgment in Muscatine County District Court after pleading guilty to conspiracy to commit a forcible felony.

This case was investigated by the Federal Bureau of Investigation and the Muscatine Police Department, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA- On June 15, 2016, Philipp Johnson, age 40, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 120 months imprisonment on the charge of possession of child pornography, announced United States Attorney Kevin VanderSchel. Johnson was also ordered to serve 10 years of supervised release following his prison term, pay $100 towards the Crime Victims Fund, and pay $3,000.00 to each of the two identified victims. Forfeiture of the electronic device used to possess the child pornography was also ordered.

Johnson pled guilty to this crime on January 25, 2016. On December 1, 2014, the Davenport, Iowa Police Department was notified that Johnson’s cellular phone contained suspected child pornography. A forensic examination showed that the phone was activated on October 24, 2014, and last accessed November 20, 2014. The examination revealed that the user was actively browsing the internet for pornographic websites. The examiner found 496 images containing child pornography, some of which showed children under the age of twelve years old and a minor engaged in bestiality. Upon searching the Iowa Sex Offender Registry, it was confirmed that Johnson is a registered sex offender with the State of Iowa, for a prior conviction of Sexual Abuse 3rd (Iowa Code 709.4) on August 4, 2000. His victim was a female between the ages of 0-13.

This matter was investigated by the Davenport Police Department and the National Center for Missing and Exploited Children. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.

DAVENPORT, IA – On June 8, 2016, Gregory Scott Alcala, 44, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 33 months in federal prison for each count of preparing and presenting a false tax return, wire fraud, and making a bomb threat in and affecting interstate commerce, announced Acting United States Attorney Kevin E. VanderSchel. The sentences were ordered to be served concurrently, that is, at the same time. Alcala was ordered to serve three years of supervised release following his prison term, pay $300 to the Crime Victims’ Fund, and pay a total of $115,841.84 in restitution to 71 of his victims.

Alcala pled guilty to the crimes on February 24, 2016. According to the plea agreement, in about February 2010, Alcala began operating Alcala Tax Service in Davenport and prepared and filed federal tax returns on behalf of taxpayers. Beginning by at least February 18, 2012, and continuing to at least March 14, 2014, Alcala devised a scheme to defraud by filing altered tax returns. Specifically, Alcala prepared tax returns on behalf of taxpayers, provided a copy of the prepared return to the taxpayers, and then represented to the taxpayers that Alcala had filed that return with the Internal Revenue Service on the taxpayer’s behalf. In reality, Alcala did not file that version but instead—without the knowledge of and authority from the taxpayer—materially altered the taxpayer’s return to create a larger tax refund than the one reflected in the copy of the return Alcala had provided to the taxpayer. Alcala then filed the unauthorized version of the taxpayer’s return and—without the knowledge of and authority from the taxpayer—directed the additional refund amount to Alcala’s own bank account. During tax years 2009 through 2014, Alcala prepared at least 164 tax returns that included false or fraudulent information and directed at least a portion of 159 of those tax refunds to his own bank account without the knowledge of or authority from the taxpayer.

Additionally, on December 26, 2013, a switchboard operator for Badger Mutual Insurance, in Milwaukee, Wisconsin, received a telephone call from Alcala in Davenport. During the call, Alcala threatened the operator by stating he was going to send her a bomb. Alcala knew his communication to the operator would be viewed as threatening.

This matter was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On June 2, 2016, Ali Suarez, 21, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 60 months in prison, following Suarez’s guilty plea on March 2, 2016, to a felon in possession of a firearm charge announced Acting United States Attorney Kevin E. VanderSchel. Suarez was ordered to serve three years of supervised release after his prison term and to pay $100 to the Crime Victim’s Fund.

On October 15, 2015, Davenport police officers were dispatched to a gun shots fired complaint. Officers searched the area and recovered a Hi-Point .45 caliber semiautomatic handgun. The investigation revealed Suarez and his fellow gang members were feuding with a rival gang. During the altercation, Suarez fired the handgun recovered by the police.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

COUNCIL BLUFFS, IA – On June 1, 2016, Nicholas M. Malone, 27, of Pottawattamie County, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months in prison, followed by three years of supervised release, for felon in possession of a firearms and possession of stolen firearms charges, announced Acting United States Attorney Kevin E. VanderSchel.

Malone entered his guilty pleas on February 23, 2016, to illegally possessing stolen firearms, based on his arrest on June 5, 2015, by the Council Bluffs Police Department. At the time of his arrest, Malone was operating a stolen pick-up truck and was found to be in possession of methamphetamine, drug paraphernalia, a loaded .40 caliber hand-gun, a Tikka .204 Rifle, and assorted ammunition. The firearms and ammunition had been reported stolen from Oakland, Iowa prior to Malone’s arrest.

This matter was investigated by the Council Bluffs Police Department, with support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DES MOINES, IA - On June 2, 2016, Andrea G. Baker waived indictment and pleaded guilty to one count of mail fraud announced Acting United States Attorney Kevin E. VanderSchel. Baker, age 50, admitted to engaging in a scheme to defraud the Ames Chi Omega Alumnae Association in Ames, Iowa ("Association"), from approximately July 2000 until August 2014. Baker admitted she used her position as treasurer to obtain Association funds for her own benefit. As part of the scheme, Baker mailed checks from the Association’s account to pay for personal credit card statements. Baker also deposited Association funds into a personal bank account, and obtained cash from the Association for her personal use. Baker acted without the Association’s permission or knowledge, and made false entries and omissions in the Association’s financial records to conceal her use of funds. Baker admitted she received and attempted to receive a total of at least $954,410 from the Association from 2000 to 2014.

Baker faces a statutory sentence of up to twenty (20) years in prison, a fine of up to $250,000, and a term of up to three (3) years of supervised release to follow any term of imprisonment. As part of the plea agreement, Baker agreed to pay restitution in an amount to be determined by the court at sentencing. Sentencing is scheduled for 9:00 a.m. on October 6, 2016, before United States District Court Judge Rebecca Goodgame Ebinger, at the United States Courthouse in Des Moines.

DES MOINES, IA - On May 24, 2016, Dorothy L. Dillinger pled guilty to one count of mail fraud and one count of malicious use of fire announced Acting United States Attorney Kevin E. VanderSchel. Dillinger, age 61, admitted to engaging in a scheme to defraud the City of Casey, Iowa, from around 2009 until August 2014, while serving as the City Clerk. As part of that scheme, Dillinger admitted that she used the City’s credit card and funds to purchase items for personal use without the knowledge or approval of the City Council. Dillinger used the United States Postal Service to mail City checks to pay the resulting credit card statements. Dillinger also admitted to making unauthorized payments to herself for personal expenses without City Council approval or knowledge. Dillinger failed to disclose these expenditures to both the City Council, as well as in minutes from City Council meetings. Dillinger also admitted to maliciously destroying the City of Casey Community Building, which was used in activities affecting interstate commerce, by means of fire. The city building was destroyed by fire from the late night of August 19th into the morning of August 20th in 2014.

Dillinger faces a statutory sentence of at least five (5) years and up to twenty (20) years in prison, as well as financial penalties and a term of supervised release. As part of the plea agreement, Dillinger agreed to pay restitution in an amount to be determined by the court at sentencing. Sentencing is scheduled for at 10:30 a.m. on September 26, 2016, before the Honorable James E. Gritzner, Senior United States District Court Judge, at the United States Courthouse in Des Moines.

DAVENPORT, IA – On May 23, 2016, Jonathan Earl Moore, 29, of Davenport, Iowa, was sentenced to 36 months imprisonment by District Court Judge Stephanie M. Rose, after pleading guilty to a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Moore was ordered to serve three years on supervised release and pay $100 to the Crime Victims’ Fund. On July 5, 2015, Davenport Police Department officers found Moore in possession of a Talon 9mm handgun. Moore pled guilty on January 15, 2016.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On May 9, 2016, Russell Edwin Wagler, 52, of Wayland, Iowa, waived his right to be indicted by the federal grand jury and entered pleas of guilty to an Information charging him with one count of misapplication and embezzlement of bank funds by a bank officer in violation of 18 U.S.C. § 656 (Count 1) and one count of obstruction of a bank examination in violation of 18 U.S.C. § 1517 (Count 2). The proceeding was held before United States Magistrate Judge Stephen B. Jackson, Jr.. The criminal case is assigned to United States District Court Judge Stephanie M. Rose. Sentencing is scheduled for September 19, 2016.

According to documents filed in United States District Court, from approximately December 2002 and until March 2013, Wagler originated numerous straw loans involving existing customers at the bank and took the proceeds of those loans. As a result, Wagler misapplied bank funds and the bank suffered losses of approximately $425,977.00. In addition, from approximately January 2008 and until October 2013, Wagler unlawfully obtained multiple unauthorized bonuses and unauthorized increased salaries. As a result of these unauthorized disbursements received by Wagler, the bank suffered losses of $200,964.00 bringing the total bank loss to $626,941.00 as related to Wagler’s activities.

The case was investigated by the Office of Inspector General for the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation.

DES MOINES, IA – On May 10, 2016, Kevin Villalobos Guardado, of Des Moines, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 293 months in prison for conspiracy to distribute at least 50 grams of actual methamphetamine, 24 months in prison for illegal reentry into the United States, and 120 months in prison on two counts of being an illegal alien in possession of firearms, announced Acting United States Attorney Kevin E. VanderSchel. All sentences were ordered to run concurrently. Villalobos was ordered to serve five years of supervised release following his prison term and to pay $400 towards the Crime Victims’ Fund.

Villalobos was arrested as part of a coordinated law enforcement effort in August 2015, which targeted a large-scale drug trafficking organization and included the execution of numerous search and arrest warrants. According to the plea agreement, from April to August 2015, Villalobos sold methamphetamine and firearms to confidential informants and undercover agents. Villalobos is a citizen of El Salvador, who was illegally present in the United States following a prior removal or deportation.

This matter was investigated by the Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On May 11, 2016, Xavier Elfonsto Buckner, age 27, of Davenport, Iowa, was found guilty after a three day jury trial presided over by Chief District Court Judge John A. Jarvey, announced Acting United States Attorney Kevin E. VanderSchel.

The jury found that on August 11, 2015, Buckner knowingly possessed a .380 caliber Smith and Wesson Bodyguard handgun that was manufactured outside of the state of Iowa. Evidence presented at trial described that Buckner possessed this handgun after a vehicle, in which Buckner was a passenger, fled from the Davenport Police Department. An Iowa Division of Criminal Investigation Criminalist testified that based on ballistics testing, the firearm seized from Buckner on August 11 was the same firearm connected to spent shell casings seized after an earlier shooting that occurred in the 700 block of W. 14th Street on August 3, 2015. Buckner was found to have a conviction in 2006 for a crime punishable by imprisonment for a term exceeding of one year.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

The Justice Department announced today that it has reached an agreement with the city of Council Bluffs, Iowa, to resolve alleged violations of the Americans with Disabilities Act (ADA), for failing to provide access for individuals with disabilities at Mid-America Center.  Opened in 2002, the Mid-America Center is a multipurpose arena for basketball, hockey and concerts with 9,000 seats.

During its investigation of the Mid-America Center, the United States found that Council Bluffs failed to provide sufficient wheelchair seating, seating for companions to users of wheelchairs and accessible aisle seating to allow people to transfer to the seats by removing or moving arm rests.  The United States also found that the city failed to ensure that individuals with disabilities have an equal opportunity to purchase tickets for accessible seating.  The ADA’s new construction provision requires that in newly constructed arenas, including Mid-America Center, wheelchair seating locations be an integral part of the seating plan and that sight lines for these seating locations be comparable to those offered to the general public.

Under the settlement agreement, Council Bluffs will provide wheelchair and companion seating locations in various event configurations at the center dispersed throughout the arena.  The city will provide at least 56 wheelchair and companion seats, seats without arm rests or seats equipped with folding or removable arm rests.  Council Bluffs will also revise its ticketing and pricing policies for events to afford individuals with disabilities the opportunity to purchase accessible seats in a manner comparable to that of other individuals.

“The Civil Rights Division is committed to ensuring that all newly constructed arenas are readily accessible to and usable by individuals with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We commend the city of Council Bluffs for cooperating with the Justice Department and taking swift remedial action to address the situation.”

“Protecting access for individuals with disabilities will continue to be a priority for this district,” said Acting U.S. Attorney Kevin E. VanderSchel of the Southern District of Iowa.

For more information about the ADA and today’s agreement, individuals may access the ADA web page at www.ada.gov or call the toll-free ADA information line at (800) 514-0301 or (800) 514-0383 (TTY).

Mid-America Center Settlement Agreement

DES MOINES, IA – On April 19, 2016, Nathan Leland Minard, 32, of Knoxville, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 120 months in prison for a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Minard was ordered to serve three years of supervised release following his prison term and to pay $100 to the Crime Victim’s Fund.

Minard pleaded guilty to the offense on July 13, 2015. On November 17, 2014, the Marion County Sheriff’s Office was notified that an individual had knocked on the door of a Knoxville resident, asked a few questions, and then departed the residence striking a vehicle in the yard. The resident provided law enforcement with a description of the vehicle. A Marion County Deputy Sheriff responded to the call and located the vehicle driven by Minard. A camouflaged shotgun was stuck out the window of the driver’s side of the vehicle and, at some point during the encounter, Minard racked the shotgun. The deputy was able to persuade Minard to leave the vehicle and the weapon. Minard was arrested after it was determined he was a convicted felon and not eligible to possess a firearm. Two stolen shotguns were discovered in the vehicle Minard was driving.

This matter was investigated by Marion County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On April 12, 2016, Alfred Latrell Jackson, 25, and Curtis Lee Kemp, 49, both of Iowa City, Iowa, were found guilty following a four day jury trial for their involvement in a heroin distribution conspiracy, announced Acting United States Attorney Kevin E. VanderSchel. United States District Court Judge Stephanie M. Rose presided over the jury trial. Jackson was found guilty of one count of conspiracy to distribute at least 100 grams of heroin. Kemp was found guilty of one count of conspiracy to distribute heroin and three counts of distribution of heroin.

Evidence was presented at trial that between December 2013 and May 2015, Jackson and Kemp conspired with others to distribute heroin in the Iowa City area. Kemp will be sentenced by Judge Rose on August 19, 2016, at 8:30 a.m. He may be sentenced up to twenty years on each of the four counts he was found guilty. Jackson will be sentenced by Judge Rose on August 19, 2016, at 11:15 a.m., and faces a maximum sentence of forty years imprisonment.

This matter was investigated by the Johnson County Multi-Jurisdictional Drug Task Force, Johnson County Sheriff’s Office, Coralville Police Department, Iowa Division of Narcotics Enforcement, Drug Enforcement Agency, Iowa City Police Department, North Liberty Police Department, University of Iowa Police Department, Muscatine County Drug Task Force, and the Washington County Drug Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On March 6, 2016, John Michael Riepe, 31, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 151 months in prison for enticement of a minor, announced Acting United States Attorney Kevin E. VanderSchel. Riepe was ordered to serve ten years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund. Riepe was also ordered to comply with sex offender registry requirements and have no contact with any minors under the age of 18 years old.

Riepe was found guilty of enticement of a minor on August 19, 2015, after a three day jury trial. At trial, evidence was presented that Riepe sent a letter to a minor student at Pleasant Valley High School providing a picture and his phone number. The letter was turned over to the Scott County Sheriff’s Office. Det. Rachelle Kunde initiated contact with Riepe at the phone number he provided, and purported to be the minor victim. The two sent text messages back and forth beginning in September 2014. In the text messages, Riepe suggested meeting and having sexual contact. On October 30, 2014, Riepe was arrested when he arrived at a location where he intended to pick up the minor victim.

Additional evidence presented at trial showed Riepe had initiated prior contacts with several minor females in the past, which led to being banned from area high schools and their facilities.

This matter was investigated by the Scott County Sheriff’s Department, United States Marshals Service, Bettendorf Police Department, Davenport Police Department, and the Iowa Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.

DAVENPORT, IA – On March 30, 2016, Thomas James McLaughlin, 48, of Mediapolis, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 84 months in prison for receiving child pornography, announced Acting United States Attorney Kevin E. VanderSchel. Hansen was ordered to serve ten years of supervised release following his prison term, comply with the sex offender registry requirement in the state he lives, and to pay $100 towards the Crime Victims’ Fund. McLaughlin was also ordered to forfeit the electronic devices involved in the offense.

McLaughlin pleaded guilty to receiving child pornography on October 26, 2015. According to the plea agreement, on August 10, 2014, a search warrant was executed at McLaughlin’s Mediapolis residence and electronic devices were seized. A forensic examination of those devices concluded there were 5,251 images and 271 videos containing minors engaged in sexually explicit conduct dating from May 2013 through July 2014.

This matter was investigated by the Des Moines County Sheriff’s Department, Iowa Internet Crimes Against Children Task Force, The National Center for Missing and Exploited Children, and the Iowa Division of Criminal Investigation, Cyber-Crime Unit. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.

DAVENPORT, IA – On March 30, 2016, Timothy John Hansen, 44, of Clinton, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 130 months in prison for receiving child pornography, announced Acting United States Attorney Kevin E. VanderSchel. Hansen was ordered to serve five years of supervised release following his prison term, comply with the sex offender registry requirement in the state he lives, and to pay $100 towards the Crime Victims’ Fund. Hansen was also ordered to forfeit the electronic devices involved in the offense.

Hansen pleaded guilty to receiving child pornography on September 25, 2015. According to the plea agreement, a search warrant was executed at Hansen’s Clinton residence and electronic devices were seized. Hansen admitted to downloading child pornography (images and videos) on his various electronic devices. A forensic examination concluded there were 7,670 images (dating from 2010 to 2013) and 63 videos containing minors engaged in sexually explicit conduct (dating from 2011 to 2012).

This matter was investigated by the Clinton Police Department, Iowa Internet Crimes Against Children Task Force, The National Center for Missing and Exploited Children, and Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.

COUNCIL BLUFFS, IA – On March 24, 2016, Sarah D. Long, 35, of Council Bluffs was sentenced by Chief United States District Court Judge John A. Jarvey to 30 months in prison, announced Acting United States Attorney Kevin E. VanderSchel. Long was also sentenced to three years of supervised release to follow her prison term.

Long pleaded guilty to drug user in possession of a firearm on December 3, 2015. She admitted that on or about August 11, 2015, she was arrested by the Council Bluffs Police Department for operating a stolen vehicle. At the time of her arrest, she was found to be in possession of methamphetamine, drug paraphernalia, and a loaded 9 mm handgun.

This investigation was conducted by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On March 18, 2016, Lori Kristine Bentler, 44, of Salem, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in federal prison for defrauding the M.H.I. Credit Union in Mount Pleasant, Iowa, announced Acting United States Attorney Kevin E. VanderSchel. Bentler was ordered to serve five years of supervised release following her prison term, pay $100 to the Crime Victims’ Fund, and pay $249,250.51 in restitution.

Bentler pleaded guilty to one count of bank fraud occurring on March 28, 2011. According to the plea agreement, on that date Bentler fraudulently funded a $30,000 loan to herself without approval from the credit union’s board of directors. Bentler also admitted that no later than on or about November 6, 2009, and ending on or about September 12, 2011, she devised a scheme and artifice to defraud M.H.I. Credit Union and to obtain funds and moneys under the custody and control of M.H.I. Credit Union by means of materially false and fraudulent pretenses, representations, and promises. Bentler fraudulently issued and refinanced several loans to herself, her sister, and her daughter, in some instances without the approval of the M.H.I. Credit Union board of directors and in other instances based on material misrepresentations or omissions. Bentler concealed many, if not all, of the unapproved loans from the board of directors and exposed M.H.I. Credit Union to a risk of loss on those loans.

The credit union’s deposits were, at all relevant times, insured by the National Credit Union Administration Board and the National Credit Union Insurance Fund. Bentler agreed with United States Attorney that her sentence should be between 18 months and 30 months, inclusive.

This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On March 18, 2016, Dustin Wayne Rogers, 30, of Muscatine, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 228 months in federal prison on three counts of Production of Child Pornography and one count of Attempted Production of Child Pornography, and 120 months on one count of Possession of Child Pornography announced Acting United States Attorney Kevin E. VanderSchel. The sentences were ordered to be served concurrently, meaning all at the same time. Rogers was ordered to serve five years of supervised release following his prison term, pay $500 to the Crime Victims’ Fund, and forfeit the items used to obtain, produce, and store the contraband images.

Rogers pleaded guilty to the five counts admitting in 2013 and 2014 he contacted four different minors, all under 16 years of age at the time, through social media cites on the Internet posing as a minor himself. Rogers asked these minors to produce images of themselves naked and requested depictions of sexual acts from at least one of the minors. During interactions with one of the minors, Rogers mentioned that they engage in sexual activities together. On May 22, 2014, police searched Rogers’s residence in Muscatine and found that he possessed child pornography on his iPhone.

This matter was investigated by the Muscatine Police Department and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

Council Bluffs, IA - On March 16, 2016, Jonathon Oros-Moreno, a 29 year-old citizen of Mexico, was sentenced by Senior United States District Court Judge James E. Gritzner, to 100 months in prison followed by five years of supervised release for possession with intent to distribute methamphetamine announced Acting United States Attorney Kevin E. VanderSchel.

Oros-Moreno entered a guilty plea on July 24, 2015, to possession with intent to distribute methamphetamine following his arrest on July 24, 2014, by the Southwest Iowa Narcotics Task Force working with the Federal Bureau of Investigation's Safe Streets Task Force. On July 24, 2014, law enforcement purchased two one-pound packages of methamphetamine from Oros-Moreno before serving a search warrant on the Council Bluffs, Iowa apartment where Oro-Moreno was staying. At the apartment, law enforcement located an additional twelve one-pound packages of methamphetamine.

The investigation was conducted by the Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, the Bellevue (Nebraska) Police Department, the Omaha (Nebraska) Police Department and the FBI’s Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

COUNCIL BLUFFS, IA – On March 11, 2016, Carlton Allan Owens, 57, of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge Robert W. Pratt, to 144 months in prison for Possession with Intent to Distribute Methamphetamine and 120 months imprisonment for Felon in Possession of a Firearm, announced Acting United States Attorney Kevin E. VanderSchel. The two prison terms will be served concurrently. Owens’ term of imprisonment will be followed by five years of supervised release.

Owens pleaded guilty to the charges on November 10, 2015. According to the plea agreement, Council Bluffs police officers responded to a domestic violence call involving Owens. Upon arrival at the scene, officers contacted Owens, who was standing next to his motorcycle. Owens was arrested for domestic violence and a search of Owens and his property revealed over 600 grams of methamphetamine, a loaded handgun, and a large amount of cash. Prior to June 2015, Owens had been convicted of a felony offense.

This matter was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On March 3, 2016, Kelvin Dwayne Shaw, 33, of Rock Island, Illinois, was sentenced by Senior United States District Court Judge James E. Gritzner to 51 months in prison for felon in possession of a firearm and possession of a stolen firearm, announced Acting United States Attorney Kevin E. VanderSchel. Shaw was ordered to serve three years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund.

Shaw pleaded guilty to felon in possession of a firearm and possession of a stolen firearm on November 30, 2015. According to the Complaint Affidavit, on August 2, 2015, Davenport Police investigated a homicide that occurred at the 400 block of Marquette Street in Davenport, Iowa. During the investigation, officers found a loaded Tisas Zigana American Tactical 9mm firearm near the scene. Shaw was questioned about the gun and admitted he had stolen it from Rock Island, stored it in Davenport, and handled the firearm on the night of the murder.

Shaw has a prior felony conviction for obstruction in Rock Island County in 2013.

This matter was investigated by the Alcohol, Tobacco, Firearms and Explosives and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood Initiative.

DAVENPORT, IA – On March 3, 2016, Francisco Antonio Araujo Coreas, 37, of Muscatine, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 57 months in prison for unlawful reentry into the United States after deportation and failure to update sex offender registry, announced Acting United States Attorney Kevin E. VanderSchel. Araujo Coreas was ordered to serve three years of supervised release following his prison term and to pay $200 towards the Crime Victims’ Fund. Araujo Coreas will be transferred to immigration officials after his prison sentence for deportation.

Araujo Coreas pleaded guilty to unlawful reentry after deportation and failure to update sex offender registry on November 30, 2015. According to the Complaint Affidavit, on about July 29, 2016, Araujo Coreas was arrested in Muscatine for interference with official acts and harassment of a public official. Authorities compared his fingerprints and discovered he was deported to El Salvador on September 9, 2011, after being convicted of two counts of indecent contact with a child on January of 2011 in Muscatine County. As part of that sentence, he was ordered to serve 90 days in jail and register as a sex offender. Further investigation revealed he did not update his information on the sex offender registry.

This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the Muscatine County Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On March 3, 2016, Brandon Jermaine Sykes, 33, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 360 months in prison for conspiracy to distribute cocaine base ("crack"), announced Acting United States Attorney Kevin E. VanderSchel. Sykes was ordered to serve five years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.

Sykes pleaded guilty to conspiracy to distribute at least 280 grams of cocaine base on December 15, 2015. According to the plea agreement, from April 2013 to about April 2, 2015, Sykes obtained powder cocaine from individuals in Chicago, Illinois, and then would convert it to "crack" cocaine and sell it to individuals living in Davenport. Sykes had 15 different customers in the Davenport area. On four different occasions, law enforcement utilized a confidential source to purchase "crack" cocaine from Sykes at his Davenport residence.

This matter was investigated by the Davenport Police Department’s Tactical Operations Bureau, the Davenport Police Department, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DES MOINES, IA - On March 1, 2016, a jury in the Southern District of Iowa convicted Bradley J. Prucha, 38, of West Des Moines, Iowa, on multiple counts from an organized retail theft scheme, child pornography, and witness tampering. Sentencing has been scheduled for June 23, 2016, before Chief United States District Court Judge John A. Jarvey

From around October 2013 through May 2015, Prucha led a scheme to purchase items from various retailers using UPC bar code stickers that Prucha created. Prucha used these stickers, and provided these stickers to others, to purchase items at significantly lower costs than their actual retail value. These purchases occurred at stores from Iowa to Florida, where Prucha maintained a residence, as well as states surrounding Iowa such as Nebraska and Illinois. Prucha returned the items to stores, or sold them using eBay, Craigslist, and to direct buyers, for close to their actual retail value. Some of the individuals Prucha used to perpetrate this scheme included minors. Prucha was convicted of one count of conspiracy to commit interstate sale and receipt of stolen property and mail fraud, as well as six counts of mail fraud, for his role in this scheme.

Prucha was also convicted of three counts of sexual exploitation of minors for the production of child pornography. He was also convicted of possession of child pornography and distribution of Xanax, a schedule IV controlled substance, to persons under the age of 21. In 2015, Prucha produced three videos depicting two minor victims, approximately 16 years old at the time, engaging in sexually explicit conduct. Prucha provided these and other minor victims with Xanax in an effort to facilitate sexual relations and the production of the child pornography. Prior to trial, Prucha stipulated that at the time of the production offenses he was required to register as a sex offender, which constitutes three separate offenses in addition to the counts of production of child pornography.

The jury also found Prucha guilty of four counts of witness tampering. These charges stemmed from Prucha's attempts to have a former inmate at Polk County Jail offer money to the minor witnesses for them to provide false testimony at trial. Prucha faces sentences ranging from a mandatory minimum term of 35 years up to 50 years imprisonment.

This investigation was conducted by the Federal Bureau of Investigation, Des Moines Resident Office, with assistance from the Asset Protection teams at various retailers, including Barnes & Noble, Walmart, Toys R Us, and Best Buy. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – – On February 24, 2016, Gregory Scott Alcala, 43, of Davenport, Iowa, appeared before the Honorable Stephen B. Jackson, Jr., and pleaded guilty to preparing and presenting a false tax return, wire fraud, and making a bomb threat in and affecting interstate commerce, announced Acting United States Attorney Kevin E. VanderSchel.

According to the plea agreement, in about February 2010, Alcala began operating Alcala Tax Service in Davenport and prepared and filed federal tax returns on behalf of taxpayers. Beginning by at least February 18, 2012, and continuing to at least March 14, 2014, Alcala devised a scheme to defraud by filing altered tax returns. Specifically, Alcala prepared tax returns on behalf of taxpayers, provided a copy of the prepared return to the taxpayers, and then represented to the taxpayers that Alcala had filed that return with the Internal Revenue Service on the taxpayer’s behalf. In reality, Alcala did not file that version but instead—without the knowledge of and authority from the taxpayer—materially altered the taxpayer’s return to create a larger tax refund than the one reflected in the copy of the return Alcala had provided to the taxpayer. Alcala then filed the unauthorized version of the taxpayer’s return and—without the knowledge of and authority from the taxpayer—directed the additional refund amount to Alcala’s own bank account. Alcala prepared at least 164 tax returns that included false or fraudulent information and directed at least a portion of 159 of those tax refunds to his own bank account without the knowledge of or authority from the taxpayer.

Additionally, on or about December 26, 2013, a switchboard operator for Badger Mutual Insurance, in Milwaukee, Wisconsin, received a telephone call from Alcala in Davenport. During the call, Alcala threatened the operator by stating he was going to send her a bomb. Alcala knew his communication to the operator would be viewed as threatening.

Alcala is scheduled to be sentenced before Senior United States Judge James E. Gritzner on June 8, 2016, at 11:00 a.m. at the Davenport Federal Courthouse. Preparing and presenting a false tax return is punishable for a maximum of three years imprisonment and a maximum $100,000 fine. The crime of wire fraud has a maximum prison term of 20 years and up to a $250,000 fine. Alcala faces a maximum prison term of ten years and up to a $250,000 fine for making a bomb threat in and affecting interstate commerce.

This matter was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DES MOINES, IA – On February 22, 2016, Robert Eugene Graham, 46, of Michigan City, Indiana, was sentenced by Chief United States District Court Judge John A. Jarvey to 210 months (17-1/2 years) in prison for the crime of interstate domestic violence, announced Acting United States Attorney Kevin E. VanderSchel. Graham had previously pleaded guilty to this offense on November 6, 2015.

According to the plea agreement, Graham traveled from Michigan City, Indiana, to Chariton, Iowa, on January 15, 2015, while in possession of a Mossburg shotgun. The following morning, he shot the victim, with whom he had previously had an intimate relationship, while the victim was leaving her home for work. Graham’s actions caused severe, life-threatening bodily injury to the victim.

This matter was investigated by the Iowa Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, with assistance from the office of the Iowa Attorney General—Area Prosecutions.

DAVENPORT, IA – On February 11, 2016, Thomas Alexander Davis, III, 40, of Anderson, Indiana, was found guilty of bank robbery following a four-day jury trial, announced Acting United States Attorney Kevin E. VanderSchel. Davis was found guilty of committing a robbery at the US Bank in Muscatine on November 28, 2012. A sentencing date will be set by Chief District Court Judge John A. Jarvey at a later date.

Davis faces a potential prison sentence of up to twenty years in prison, a maximum $250,000 fine, and up to three years of supervised release following any prison term. This matter was investigated by the Federal Bureau of Investigation and the Muscatine Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DES MOINES, IA – On February 16, 2016, Barbara L. Baker, 54, of Montezuma, Iowa, was sentenced by Senior United States District Court Judge Robert W. Pratt to 60 days in prison for misapplication of bank funds, announced Acting United States Attorney Kevin E. VanderSchel. Baker will also be required to serve a three year term of supervised release following her term of imprisonment.

On August 7, 2015, Baker pled guilty to a United States Attorney’s Information charging her with the misapplication. Baker admitted from around January 20, 2012, to around July 19, 2013, she misapplied funds from Patriot Bank in Brooklyn, Iowa, for her own benefit, while she served as the chief financial officer of the bank.

This matter was investigated by the Federal Deposit Corporation Office of Inspector General and the United States Secret Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On January 29, 2016, Brandon Lysle VanBlarcom, 29, of Wilton, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 72 months in prison for felon in possession of a firearm and possession of a stolen firearm, announced Acting United States Attorney Kevin E. VanderSchel. VanBlarcom was ordered to serve three years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund.

VanBlarcom pleaded guilty to the offenses on October 5, 2015. According to the plea agreement, on February 17, 2015, law enforcement was notified of a burglary in Morrison, Illinois, involving stolen firearms. On March 30, 2015, police officers searched VanBlarcom’s residence and found a Yugoslavian SKS 7.62 x 39 caliber rifle hidden in a crawl space. This gun was verified as having been stolen in the Morrison burglary. VanBlarcom has a prior 2005 felony conviction for burglary in the second degree.

This matter was investigated by the Muscatine Police Department, Muscatine County Sheriff’s Department, Muscatine Drug Task Force, Wilton Police Department, Cedar County Sheriff’s Department, Iowa Division of Narcotics Enforcement, Scott County Sheriff’s Department, Whiteside County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On January 29, 2016, James Clayton Bailey, 67, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 15 months in prison for theft of government property, announced Acting United States Attorney Kevin E. VanderSchel. Bailey was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Bailey was also ordered to pay restitution in the amount of $52,441.20 to the Social Security Administration (SSA).

Bailey pleaded guilty to theft of government property on October 26, 2015. According to the plea agreement, Bailey began receiving Social Security Disability benefits in 2003. On October 29, 2009, Bailey was incarcerated in the Iowa Department of Corrections for a sexual abuse conviction. He was released from prison on May 9, 2014. During his incarceration, Bailey failed to notify SSA he was incarcerated and continued to receive his disability payments, knowing he was not qualified to receive such benefits. Bailey received over $52,000.00 in benefits while he was in prison.

This matter was investigated by the Social Security Administration, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DES MOINES, IA – On January 27, 2016, Mo Hailong, also known as Robert Mo, 46,

appeared before the Honorable Stephanie M. Rose and pleaded guilty to conspiracy to steal trade

secrets, announced Assistant Attorney General for National Security John P. Carlin and Acting

United States Attorney Kevin E. VanderSchel.

 

According to the plea agreement, Mo Hailong admitted to participating in a long term

conspiracy to steal trade secrets from DuPont Pioneer and Monsanto. Mo Hailong participated in

the theft of inbred corn seeds from fields in the Southern District of Iowa for the purpose of

transporting the seeds to China. The stolen inbred, or parent, seeds were the valuable intellectual

property of DuPont Pioneer and Monsanto.

 

During the course of the conspiracy, Mo Hailong was employed as the Director of

International Business of the Beijing Dabeinong Technology Group Company, commonly

referred to as DBN. DBN is a Chinese conglomerate with a corn seed subsidiary company, Kings

Nower Seed. Mo Hailong is a Chinese national who became a lawful permanent resident of the

United States pursuant to an H-1B visa.

 

The investigation was initiated when DuPont Pioneer security staff detected suspicious

activity and alerted the Federal Bureau of Investigation. DuPont Pioneer and Monsanto were

fully cooperative throughout the investigation.

 

Mo Hailong will be sentenced at a date to be determined in Des Moines, Iowa.

 

Conspiracy to steal trade secrets is a felony that carries up to 10 years of imprisonment

and up to a $250,000 fine. As part of the plea agreement in this case, the government agreed not

to seek more than a five year prison sentence.

 

This matter was investigated by the Federal Bureau of Investigation. The case was

prosecuted by the United States Attorney’s Office for the Southern District of Iowa and the

National Security Division’s Counterintelligence and Export Control Section.

Mo Hailong, aka Robert Mo, 46, pleaded guilty today to conspiracy to steal trade secrets before U.S. District Judge Stephanie M. Rose of the Southern District of Iowa, announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Kevin E. VanderSchel of the Southern District of Iowa. 

According to the plea agreement, Hailong admitted to participating in long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto.  Hailong further admitted to participating in the theft of inbred – or parent – corn seeds from fields in the Southern District of Iowa for the purpose of transporting those seeds to China.  The stolen inbred seeds constitute the valuable intellectual property of DuPont Pioneer and Monsanto.

During the conspiracy, Hailong was employed as director of international business of the Beijing Dabeinong Technology Group Company, a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed.  Hailong is a Chinese national who became a lawful permanent resident of the United States pursuant to an H-1B visa.

Hailong is scheduled to be sentenced at a date to be determined later in Des Moines, Iowa.  Conspiracy to steal trade secrets is a felony that carries a maximum sentence of 10 years in prison and a maximum fine of $250,000.  As part of Hailong’s plea agreement, the government has agreed not to seek a prison sentence exceeding five years.   

The investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the FBI.  DuPont Pioneer and Monsanto have fully cooperated throughout the investigation.  The case is being investigated by the FBI.  The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Iowa and the National Security Division’s Counterintelligence and Export Control Section.

Hailong Plea Agreement

COUNCIL BLUFFS, IA – On January 22, 2016, Mark A. Yeager, 61, of rural Emerson, Iowa, was sentenced by United States District Court Judge Stephanie Rose to 36 months in prison for possession of child pornography announced Acting United States Attorney Kevin E. VanderSchel. Yeager was ordered to serve 10 years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.

Yeager pled guilty to the charge on September 1, 2015. According to the plea agreement, on April 16, 2014, investigators seized several computers and items of computer paraphernalia from Yeager’s residence. A forensic examination revealed images of child pornography on a thumb-drive seized from Yeager’s home.

This matter was investigated by the Iowa Division of Criminal Investigation, Iowa Internet Crimes Against Children Task Force, and the Montgomery County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

COUNCIL BLUFFS, IA – On January 19, 2016, Manuel Montejano Pinon, 47, of Des Moines, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 164 months in prison for conspiring to distribute methamphetamine and 60 months in prison for possessing a firearm in furtherance of drug trafficking, announced Acting United States Attorney Kevin E. VanderSchel. The two prison terms were ordered to be served consecutively.

Pinon pled guilty to the charges on September 23, 2015. According to the plea agreement, Pinon was involved in a conspiracy to distribute methamphetamine in the Southern District of Iowa. As part of the conspiracy, Pinon delivered money from the sale of methamphetamine to the methamphetamine suppliers. Pinon also possessed a firearm to further his involvement in drug trafficking.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

COUNCIL BLUFFS, IA – On January 19, 2016, Zachary M. Henderson, 38, of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 60 months in prison for a felon in possession of a firearm and possessing a firearm while subject to a domestic violence protective order charge, announced Acting United States Attorney Kevin E. VanderSchel. Henderson was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Henderson was also ordered to forfeit the firearm involved in the offense.

According to the plea agreement, on April 3, 2015, Henderson possessed a loaded handgun that was discovered during a traffic stop conducted by the Council Bluffs Police Department. Prior to April 2015, Henderson was convicted of a felony offense and he was subject to a domestic violence protective order.

This matter was investigated by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

COUNCIL BLUFFS, IA – On January 19, 2016, Michael Arnold Ramirez, 32, of Los Angeles, California, was sentenced by Senior United States District Court Judge James E. Gritzner to 147 months in prison for conspiring to distribute methamphetamine and money laundering to conceal drug proceeds, announced Acting United States Attorney Kevin E. VanderSchel.

According to Ramirez’s plea agreement, Ramirez was involved in a conspiracy to distribute methamphetamine in the Southern District of Iowa. As part of the conspiracy, in April of 2015, Ramirez traveled from California to Iowa for the purpose of transporting drug proceeds back to California. Ramirez also concealed the drug proceeds in order to disguise the location and source of the proceeds of the drug conspiracy.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On January 14, 2016, De’Andre Lee Hodges, 22, of East Moline, Illinois, was sentenced by Senior United States District Court Judge James E. Gritzner to two (2) 10 month prison terms for making false statements during the purchases of firearms, announced Acting United States Attorney Kevin E. VanderSchel. The two 10 month prison terms were ordered to be served concurrently. Hodges was ordered to serve three years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund. Hodges was also ordered to forfeit the Smith and Wesson 9mm pistol, Smith and Wesson .40-caliber semiautomatic pistol, American Tactical Import .22 Rifle, and ammunition involved in the offenses.

Hodges pleaded guilty to two counts of making false statements during the purchase of a firearm on September 16, 2015. According to the plea agreement, on August 15, 2014, Hodges purchased a Smith and Wesson 9mm handgun from a licensed gun dealer in Davenport and filled out the required Form 4473. All licensed dealers are required to obtain and retain the address of the purchaser of a firearm. This information is collected on the Form 4473 and required to be kept by the dealer.

On April 7, 2015, Hodges purchased two more guns from the same licensed gun dealer, a Smith and Wesson .40-caliber pistol, an American Tactical Import .22 Rifle, and ammunition. Hodges again filled out the required Form 4473.

Hodges reported to police on April 15, 2015, that two handguns were stolen from his garage. During the investigation, Hodges was interviewed and admitted he lived in Illinois – not Davenport – as he reported during his gun purchases on the Forms 4473.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On January 14, 2016, Leonard Fisher, Jr., 25, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 100 months in prison for a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Fisher was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Fisher was also ordered to forfeit the Lorcin .380 caliber pistol involved in the offense.

Fisher pleaded guilty to the felon in possession of a firearm charge on September 25, 2015. According to the plea agreement, on November 29, 2014, Davenport Police officers were dispatched to a dance club for a gun shots fired call. Upon arrival, officers saw a car speed out of a nearby alley and officers followed the car to Genesis East Hospital. Leonard Fisher, Jr. was identified as the front seat passenger in the car, and he told officers the backseat passenger had been shot. While the officers were assisting the gunshot victim, they saw a gun in the passenger backseat map pocket. A loaded Lorcin .380 caliber handgun with an obliterated serial number, two bags of marijuana, and a scale were found during a search of the car. Cell phones from Fisher and the driver of the car were searched, and a video on one of the phones showed Fisher with a gun in his pocket. The gun found in the car was identified as the gun Fisher possessed in the video.

Prior to November 2014, Fisher was convicted of three felony offenses; two in 2008 and the most recent in 2011.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On January 13, 2016, Tiano Nishan Trice, 34, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 90 months in prison for a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Trice was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Trice was also ordered to forfeit the Smith and Wesson 40-caliber handgun involved in the offense.

Trice pleaded guilty to the felon in possession of a firearm charge on September 8, 2015. According to the plea agreement, on April 12, 2015, Davenport Police officers responded to a residence where a female victim reported Trice had threatened her and held a gun to her head. The victim was able to direct officers to the gun, which Trice had hidden under a bedroom mattress. The gun was traced and found to have been stolen from a garage in Davenport. Prior to April 2015, Trice was convicted of delivery of crack cocaine, a felony, in 2005.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On December 22, 2015, Christopher Ryan King, 34, of Des Moines, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 30 days of imprisonment for the unlawful transport and taking of a whitetail buck deer in violation of the Lacey Act and 30 days of imprisonment for making a false statement to a department of the United States, announced Acting United States Attorney Kevin E. VanderSchel. The two thirty- day prison terms were ordered to be served concurrently. King was also ordered to serve three years of supervised release following his prison term. Conditions of supervised release imposed by the Court included restrictions against possessing firearms or other dangerous weapons, and King may not hunt, fish, or trap any wildlife, nor accompany others engaged in such activities. King was also ordered to pay $10,000 in restitution to the Iowa Army Ammunition Plant and $125 in special assessments to the Crime Victims’ Fund.

The Iowa Army Ammunition Plant is a United States Department of Defense facility operated by the United States Department of the Army and located in Des Moines County. It is a secure, limited access facility where medium and large-caliber munitions are loaded, assembled, and packed for the United States military. However, persons may apply to the Iowa Army Ammunition Plant for authorization to hunt certain areas of its approximately 19,300 acres.

According to King’s plea agreement, in April 2012, King prepared and submitted an application seeking authorization to hunt wildlife at the Iowa Army Ammunition Plant. As part of his application, King falsely attested he did not have a fish and wildlife conviction in any jurisdiction, and had never been ticketed for a violation involving hunting, fishing or trapping. Prior to the completion of his application, King had been convicted of multiple Iowa hunting violations. Based upon his false application, Plant officials allowed King to hunt on Iowa Army Ammunition Plant grounds.

King also admitted in his plea agreement on or about October 13, 2012, he shot a whitetail buck deer while hunting at the Iowa Army Ammunition Plant. King located the deer in a section of the Plant that was closed to hunting. King entered the restricted area, removed the trophy parts of the deer, and left the carcass. King then took the trophy parts out of the Iowa Army Ammunition Plant without reporting he had harvested a deer. King knew it was a violation of the law to hunt in a closed area, and to not report all game harvested at the Plant security gate. After exiting the Iowa Army Ammunitions Plant, King transported the trophy parts of the deer back to Central Iowa.

This matter was investigated by the United States Fish and Wildlife Service and the Iowa Department of Natural Resources. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On December 22, 2015, Domingo Edward Monge, 19, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 58 months in prison for possession and transfer of a weapon made from a shotgun, announced Acting United States Attorney Kevin E. VanderSchel. Monge was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.

According to Monge’s plea agreement, on or about May 31, 2014, he possessed and sold a modified Sears, Roebuck, and Co., 12 gauge JC Higgins shotgun to another individual. Monge was aware the shotgun had been modified, and the barrel of the firearm was less than 18 inches in length. He also agreed the firearm was not registered in the National Firearms Registration and Transfer Records.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On December 22, 2015, Earl Vanal Fullenwider, Jr., 24, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months in prison for a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Fullenwider was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.

Fullenwider pleaded guilty to the felon in possession of a firearm charge on July 23, 2015. According to the criminal complaint affidavit, on March 25, 2015, Davenport Police officers responded to a gun shots fired report. Near the location of the shots fired, officers noticed Fullenwider in the passenger seat of a vehicle matching the description of a car possibly involved in the shooting. A traffic stop was conducted by police, and officers found two loaded guns during a search of the car. One of the guns was found on the floor wedged between the front passenger seat and the console, accessible to Fullenwider. Prior to March 2015, Fullenwider had been convicted of felony offenses in 2009 and 2011.

This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.

DAVENPORT, IA – On December 21, 2015, William Peugh, 63, of West Burlington, Iowa, was sentenced by United States Magistrate Judge Stephen A. Jackson, Jr. to three years of probation, a $9,000 fine, and more than $164,000 in restitution to the Internal Revenue Service for willfully failing to file his income tax returns for tax years 2008, 2009, and 2010, announced Acting United States Attorney Kevin E. VanderSchel. Peugh also was ordered to pay $75 to the Crime Victims’ Fund.

Peugh owns and operates WWPeugh Sales, which generates income through the sale of machinery. The majority of Peugh’s income is from commissions paid by companies that manufacture industrial machines. Peugh also obtains income from his ownership interest in a business that owns and operates casinos. In 2008, 2009, and 2010, Peugh received income from manufacturers resulting in a tax due and owing to the Internal Revenue Service. Prior to the initiation of this prosecution, Peugh did not file income tax returns for those years.

On August 3, 2015, Peugh plead guilty to a three-count United States Attorney’s Information charging him with willfully failing to file tax returns.

This matter was investigated by the Internal Revenue Service – Criminal Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DES MOINES, IA - On December 21, 2015, Brenton J. Clark, 35, of Fairfield, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to three years of probation for the unlawful transport and receipt of a bear in violation of the Lacey Act announced Acting United States Attorney Kevin E. VanderSchel. Conditions of probation imposed by the Court included restrictions against possessing firearms or engaging in guiding, hunting or fishing activities; as well as requirements to complete 120 days of home confinement and 80 hours of community service. Clark was also ordered to pay a $2,000 fine and a $25 special assessment to the Crime Victims Fund.

On June 16, 2015, Clark pled guilty to a Lacey Act violation for his receipt, in September 2010, of a grizzly bear Clark displayed in his hunting lodge in Jefferson County, Iowa. Clark killed the grizzly bear in Alaska without a proper license and without tagging and sealing the bear as required by Alaska law. Clark also admitted after he became aware he was under investigation, he engaged in multiple conversations with potential witnesses and encouraged them to not disclose information to law enforcement.

This investigation was conducted by the United States Fish and Wildlife Service and the Iowa Department of Natural Resources. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

Des Moines, IA – On December 21, 2015, Laymon Clovesee English, 49, of Des Moines, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 188 months in prison for two counts of bank robbery, announced Acting United States Attorney Kevin E. VanderSchel. English will be required to serve three years of supervised release following his term of imprisonment.

English, at his change of plea hearing on August 28, 2015, admitted he robbed Bankers Trust, 150 East Euclid Avenue, Des Moines, Iowa, on December 31, 2014. English also admitted he robbed U.S. Bank, 2500 East Euclid Avenue, Des Moines, Iowa, two days later, on January 2, 2014. English was apprehended by U.S. Bank customers when he committed the second robbery.

This matter was investigated by the Des Moines Police Department, the Polk County Sheriff’s Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.