Southern District of Iowa

COUNCIL BLUFFS, IA - On November 5, 2014, Peter James Wiley, a 33 year-old resident of Creston, Iowa, was sentenced by United States District Court Judge John Jarvey to 110 months in prison, to be followed by three years of supervised release, for possession of firearm by a convicted felon, announced United States Attorney Nicholas A. Klinefeldt.

Wiley was identified as a person of interest in a shooting that occurred in Page County, Iowa, early in the evening of December 10, 2013. Several hours later, Wiley was identified as a suspect in a shooting that occurred in Adams County, Iowa. Wiley was located by Creston, Iowa Police, early in the morning of the 11th of December 2013, when he was observed driving a car that failed to stop for a stop sign. A pursuit occurred which culminated with Wiley setting his vehicle on fire, fleeing his vehicle on foot, and running into a farm field. As he fled on foot, he dropped a forty caliber semi-automatic handgun onto the roadway. He was arrested a short time later after being located by a K-9 unit. Wiley pled guilty to the charge on June 5, 2014.

The investigation was conducted by the Shenandoah, Iowa, Police Department, the Creston, Iowa, Police Department, the Page County Sheriff’s Office, the Adams County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA - On November 5, 2014, Bill Joe Gillespie, a 32 year-old resident of Red Oak, Iowa, was sentenced by United States District Court Judge John Jarvey to 70 months in prison, to be followed by three years of supervised release, for possession of firearm by a convicted felon, announced United States Attorney Nicholas Klinefeldt.

An investigation revealed that Gillespie had broken into a Shell gas station in Red Oak, Iowa, during the early morning hours of December 15, 2013, and had taken, among other items, two shotguns. The shotguns were recovered from Gillespie a short time later. Gillespie pled guilty to the charge on May 8, 2014.

The investigation was conducted by the Red Oak, Iowa, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA - On November 5, 2014, Barvarito Garcia Longoria, a 35 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge John A. Jarvey to 84 months in prison to be followed by three years of supervised release for being a convicted felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt.

On April 3, 2014, Garcia Longoria pled guilty to the charge of being a felon in possession of a firearm. Pottawattamie County law enforcement investigated a domestic incident, and found Garcia Longoria in possession of a defaced 9mm handgun. Garcia Longoria was prohibited from possessing a firearm after he pled guilty in 2006 to third degree assault on an officer.

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

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DES MOINES, IA – On November 6, 2014, Mark Graziano, principal owner of Bauder Pharmacy, and A. Michael Enloe, pled guilty to the charge of conspiracy to distribute a controlled substance, announced United States Attorney Nick Klinefeldt. Graziano also pled guilty to tax evasion.

“In addition to cheating on his taxes, Graziano has now admitted that he illegally sold hydrocodone pills out of Bauder Pharmacy” stated Nick Klinefeldt. “This occurred over five years, and involved hundreds of thousands of pills. Prescription drug abuse is a serious problem in this state and across the country. It wreaks havoc on the lives of all those involved. It has also been demonstrated to lead to the addiction of even more dangerous drugs, such as heroin. Though Graziano is a pharmacist, this activity had nothing to do with legitimate pharmacy practice. Graziano was a drug dealer: plain and simple.”

Sentencing is scheduled for February 6, 2015. If the Court accepts the terms of the plea agreement, Graziano faces a period of imprisonment between 24 and 37 months, and Enloe will be placed on probation for a period of one to five years. Graziano has also agreed to forfeit the property listed in the Notice of Forfeiture in the Second Superseding Indictment, and the parties have agreed that the property may be sold and the proceeds applied to restitution.

This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation. Prosecution of this matter is being handled by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA - On October 31, 2014, Dirk Hayo Notman, age 76, of Clinton, Iowa, made an initial appearance in federal court after being arrested on a federal complaint that alleged he possessed child pornography, announced United States Attorney Nicholas A. Klinefeldt. Notman was ordered detained pending a detention and preliminary hearing on November 6, 2014. As part of an ongoing investigation, law enforcement officers conducted a search of Notman’s residence on April 24, 2014. During this search, officers seized numerous DVDs containing sexually explicit images of minors.

This case is being investigated by the United States Postal Inspection Service, and the Clinton, Iowa, Police Department, and the case is being prosecuted by the United States Attorney=s Office for the Southern District of Iowa.

The public is reminded that a criminal complaint is only an accusation, and that Notman is presumed innocent unless and until proven guilty.

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DAVENPORT, IA – On October 23, 2014, Louis Warren, Jr., age 28, and John Louis Hodges, age 32, both formerly of Davenport, Iowa, were sentenced by Chief United States District Judge James E. Gritzner for attempted interference with commerce by robbery in violation of Title 18, United States Code, Section 1951 announced United States Attorney Nicholas A. Klinefeldt. Warren was sentenced to 168 months imprisonment, and Hodges was sentenced to 192 months imprisonment. Both were also ordered to serve three years supervised release following the imprisonment, pay $100 towards the Crime Victims Fund, and pay monetary restitution to the family of Demetrius Lewis, Jr., who was killed during the robbery.

In October 2011, Warren, Hodges, and Arthur Allen, Jr. planned a robbery of money, marijuana, and other items of value from Alexander Hubbard, Sr. on West 17th Street in Davenport, Iowa. In preparation for the planned robbery, the conspirators obtained two handguns for use in the robbery, including a 9mm handgun.

On October 17, 2011, as Warren, Hodges, and Allen had agreed to set-up the robbery, Hodges called Hubbard asking if he could visit Hubbard at his residence in order to buy marijuana from him, and Hubbard agreed. Hodges, Warren, and Allen then all traveled to Hubbard’s residence in a vehicle driven by Hodges, arriving at approximately 12:30 in the afternoon. Hodges was permitted access into Hubbard’s residence, where Hodges made a purchase of marijuana from Hubbard. Also inside Hubbard’s residence were three of Hubbard’s relatives who were all playing video games in the living room—20-year old Demetrius Lewis, Jr., who was Hubbard’s younger cousin, Hubbard’s then 11-year old son, and another cousin of Hubbard’s, then 18.

Upon exiting Hubbard’s residence, Hodges left the entry door to the residence open and alerted Warren and Allen—who were waiting just outside Hubbard’s residence—that Hubbard was in his residence and conducting marijuana sales. Allen and Warren then burst into Hubbard’s residence to complete the robbery. Both Allen and Warren were armed with loaded handguns. After the intruders entered the residence, multiple shots were fired. Demetrius Lewis, Jr. sustained a single 9mm gunshot wound to the abdomen. Hubbard, who upon hearing the invasion into his residence retrieved his .40 caliber handgun and fired at an intruder. Warren was struck in the abdomen with a shot fired by Hubbard. Warren and Allen ran out of the residence and fled on foot through the neighborhood. Upon locating Hodges, Allen and Warren jumped into Haye’s vehicle. Hodges dropped Warren off near Genesis West Hospital in Davenport; he was treated there for a non-life threatening wound and released.

At 12:44 p.m. on October of 2011, a 911 call was received and emergency responders dispatched to the scene of the shooting. Demetrius Lewis, Jr. was transported to a local hospital where he died a short time later. Co-defendant Arthur Allen, Jr. has pled guilty to attempted interference with commerce by robbery and is scheduled to be sentenced by Chief Judge Gritzner on November 20, 2014. Hubbard pled guilty in 2012 to possession of a firearm in furtherance of drug trafficking, and was sentenced to 96 months imprisonment.

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

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DAVENPORT, IA - On October 23, 2014, Jennifer Robyn Whitmore-Meier, age 37, of Avon, Colorado, was sentenced by United States Chief District Court Judge James E. Gritzner to three years of probation, after pleading guilty to three counts of mail fraud, announced United States Attorney Nicholas A. Klinefeldt. Whitmore-Meier was also ordered to pay $300 to the Crime Victim Fund and restitution.

Whitmore-Meier worked for the University of Iowa Hospitals and Clinics as an IT consultant from 2002 to 2011. Between February 8, 2003, and November 2, 2011, Whitmore-Meier purchased at least 567 items with University funds without approval or notice by the University, and then sold the items on eBay for gross proceeds of $122,374.87. Whitmore-Meier also used University funds to pay for accessories, shipping materials, and shipping costs affiliated with the items that she sold on eBay and also used University funds for personal eBay purchases. Over this same time period, Whitmore-Meier electronically transferred $118,553 in proceeds to her personal bank account. Whitmore-Meier admitted that she acted with the intent to defraud in executing this scheme.

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

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DAVENPORT, IA – On October 23, 2014, Russell Lee Brossart, age 42, of Muscatine, Iowa, was sentenced to 168 month in prison by Chief United States District Judge James E. Gritzner for conspiracy to distribute at least 500 grams of a mixture of substance containing methamphetamine and at least 50 grams of actual methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Brossart was ordered to serve five years supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.

Beginning about November 15, 2013, and continuing until about February 21, 2014, Brossart distributed more than 50 grams of actual methamphetamine in the Muscatine, Iowa area. During November 2013, law enforcement utilized a confidential informant to complete two controlled purchases of “ice”—also referred to as “crystal”—methamphetamine from Brossart while under law enforcement surveillance. On November 25, 2013, law enforcement executed a search warrant for Brossart’s vehicle in Muscatine and located, among other things, approximately 6 grams of ice methamphetamine. On February 20, 2014, law enforcement located an additional 29.66 grams of ice methamphetamine in a vehicle driven by Brossart. On February 21, 2014, police executed a search warrant at Brossart’s residence in Muscatine and seized approximately 60 grams of ice methamphetamine, a digital scale, and packaging materials. All of the above-referenced methamphetamine belonged to Brossart. Brossart knowingly distributed ice methamphetamine to multiple customers in the Muscatine area.

This case was investigated by the Iowa Department of Narcotics Enforcement, the Muscatine County Sheriff’s Office, the Muscatine, Iowa, Police Department, the Muscatine County Drug Task Force, the Johnson County Drug Task Force, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On October 22, 2014, Shane Roger Hoiland, age 22, formerly of Clinton, Iowa, was sentenced by United States District Judge John A. Jarvey to 48 months in prison for bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Hoiland was ordered to serve three years supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund. Hoiland was also ordered to pay restitution to the Clinton National Bank for an amount that included the funds taken by Hoiland during the robbery.

Just prior to noon on February 25, 2013, Hoiland entered the Lyons branch of the Clinton National Bank in Clinton, Iowa. He approached a teller and handed her a note demanding money. The teller placed all of the cash from her drawer in a paper bag, handed it to Hoiland, and he took the money from the teller and left the bank. At the time of the robbery the deposits of the Clinton National Bank were insured by the Federal Deposit Insurance Corporation (FDIC).

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

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COUNCIL BLUFFS, IA - On October 21, 2014, Craig Duane Ellis, a 35 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 70 months in prison for being a convicted felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Ellis was also ordered to serve two years of supervised release following the imprisonment.

On July 18, 2014, Ellis pled guilty to the charge of being a felon in possession of a firearm. Ellis was pulled over for a traffic stop on February 14, 2014, in Fremont County, Iowa, and two 12-gauge shotguns were found in the vehicle. Ellis was prohibited from possessing a firearm after he pled guilty in 2001 to third degree kidnapping.

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

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DES MOINES, IA – On October 22, 2014, Domenic “John” Pighetti, age 70, of Polk City, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to five years in prison for knowingly possessing child pornography, announced United States Attorney Nicholas A. Klinefeldt. Pighetti was ordered to serve five years supervised release following the imprisonment, to pay a $17,500 fine, and to pay $100 to the Crime Victims Fund. Pighetti was also ordered to forfeit the computer equipment and media involved in the offense.

Evidence in this case included the fact Pighetti started collecting child pornography in 2006, after reading in the newspaper about someone else being caught doing so by law enforcement, and the fact that Pighetti sought out and collected child pornography from 2006 until caught by law enforcement authorities in 2013.

The case was investigated by Homeland Security Investigations, the Iowa Department of Criminal Investigation, and the Polk County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.

Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.

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DAVENPORT, IA – On October 22, 2014, Joshua Jonas Edward Miller, age 33, of Davenport, Iowa, was sentenced to 96 months in prison by United States District Judge John A. Jarvey for conspiracy to distribute at least 280 grams of cocaine base announced United States Attorney Nicholas A. Klinefeldt. He was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.

Beginning about November 2011, and continuing until about October 30, 2012, Miller distributed more than 280 grams of cocaine base (“crack cocaine”) in the Davenport, Iowa, area. During October 2012, law enforcement utilized a confidential informant to complete a series of controlled purchases of crack cocaine from Miller while under law enforcement surveillance. On October 30, 2012, law enforcement executed a search warrant for Miller’s residence in Davenport and located, among other things, approximately 51 grams of crack cocaine and a digital scale that both belonged to Miller.

This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On October 17, 2014, Edwin James Goodwin, age 36, of Davenport, Iowa, was sentenced by United States District Judge Stephanie M. Rose to 60 months imprisonment for conspiracy to distribute at least 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Goodwin was also ordered to serve four years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.

Beginning in approximately July 2008 and continuing until about July 31, 2012, Goodwin conspired with other persons to distribute marijuana in the Davenport, Iowa, area. Specifically, during the above-mentioned time period Goodwin regularly sold multiple pound quantities of marijuana directly to his co-defendant Marqueis Letrell Lewis and other persons in Davenport for further distributions to various customers in the Davenport area. Over the course of the conspiracy Goodwin distributed over 700 kilograms of marijuana. Lewis pled guilty to conspiracy to distribute at least 100 kilograms of marijuana and was sentenced by Judge Rose in January 2014 to 113 months imprisonment. Goodwin also forfeited $58,433.27 to the government as proceeds derived from Goodwin’s drug trafficking activities.

This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA - On Tuesday, October 14, 2014, Juan Carlos Gomez, age 20 of Grand Island, Nebraska, was sentenced by United States District Court Judge Stephanie M. Rose to 12 months imprisonment after pleading guilty to possession with the intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Gomez was also ordered to serve a term of three years of supervised release following imprisonment, and pay a $100 special assessment to the Crime Victim’s Fund.

On May 7, 2013, Gomez was the driver of a vehicle that carried approximately 863.90 grams of a mixture containing methamphetamine. There were two other occupants in the vehicle, Alberto Anguiano and Thomas Lee Boswell, both of whom have pleaded guilty. Alberto Anguiano was sentenced to 120 months imprisonment, and Thomas Boswell is awaiting sentencing.

This investigation was conducted by the Iowa State Patrol, Dallas County Sheriff’s Office, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa

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DES MOINES, IA – On October 7, 2014, David Anthony Lavera, age 33, of San Diego, California, had his initial appearance and arraignment on federal child pornography charges in the U.S. District Court for the Southern District of Iowa, announced United States Attorney Nicholas A. Klinefeldt. Trial was set for December 1, 2014.

Lavera was indicted by a federal grand jury on charges of knowingly producing child pornography, or sexual exploitation of a minor, as well as knowingly possessing child pornography. If convicted on the production/sexual exploitation charge, Lavera faces a sentence of no less than 15 and no more than 30 years in federal prison, plus between 5 years and a life term of supervised release. If convicted on the possession of child pornography charge, the potential punishment is up to 20 years in prison, and between 5 years and a life term of supervised release. Both crimes carry a maximum $250,000 fine as a potential punishment, as well.

Lavera was taken into federal custody on Monday, October 6, 2014 by the U.S. Marshals Service. At the court appearance, U.S. Magistrate Judge Ross Walters ordered Lavera to remain in federal custody pending trial.

An indictment is merely an accusation, and Lavera is presumed innocent until and unless proven guilty.

The case has been investigated by a team that includes agents with Homeland Security Investigations at the U.S. Department of Homeland Security, the Jasper County Sheriff’s Office, the Iowa Department of Criminal Investigation, the Newton, Iowa, Police Department, and the Baxter, Iowa, Police Department.

The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.

Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.

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DAVENPORT, IA - On October 2, 2014, Thomas Richard Jager, age 66, of Bettendorf, Iowa, was sentenced by United States Chief District Court Judge James E. Gritzner to 97 months imprisonment, after pleading guilty to four counts of wire fraud, announced United States Attorney Nicholas A. Klinefeldt. McDaniel was also ordered to serve five years of supervised release following imprisonment, and pay $400 towards the Crime Victims Fund. Jager was also ordered to pay restitution to victims and forfeit personal property.

Thomas Richard Jager, was the owner and managing employee of Whitehall Funding, Inc., a mortgage servicing company located in Davenport, Iowa. In this capacity, Jager was responsible as sub-servicer to certain Department of Housing and Urban Development (HUD) insured mortgages pools to collect mortgage principal and interest payments and required escrow payments. Additionally, Jager was responsible for providing accurate remittance reports and remittance payments to the investors of certain mortgage backed securities secured by the loans in these pools, for making escrow payments and holding the remaining balances for escrow accounts of the mortgagors making payments, and for forwarding all funds received for the prepayment of any mortgages held in these same pools.

During a time period which included 2008 through 2010, Jager failed to forward monthly remittance payments to investors and provided false reports, failed to distribute lump sum payoffs of mortgages to investors, and then transferred money held in escrow to his personal bank account. Jager admitted to being responsible for over $7 million in total losses. Information at sentencing established that during the time of 2007 through 2010, Jager should have legitimately received approximately $18,000 in fees for servicing the loans in these pools. Instead, during this same time period, Jager transferred funds owed to investors and property owners to his personal bank account of $1,182,650. Evidence showed that he spent funds obtained as part of the fraud on credit card purchases, a hot tub for his home, purchase of vehicles, maid service, a Hilton Head time share, country club memberships, and other personal items, taxes and fees.

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

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DAVENPORT, IA – On September 25, 2014, Christopher Ryan Walz, age 34, was sentenced by United States District Judge Stephanie M. Rose to 60 months imprisonment for conspiracy to distribute 5 kilograms or more of cocaine, announced United States Attorney Nicholas A. Klinefeldt. Walz was also ordered to serve five years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.

From during or about 2009 and continuing until on or about April 24, 2013, Walz conspired with others to distribute at least 5 kilograms of cocaine. During the course of the conspiracy, Walz purchased and redistributed cocaine to various customers in the Burlington, Iowa, area. As part of the investigation, law enforcement officers conducted a search of Walz’ Burlington residence and seized cocaine, marijuana, digital scales, packaging material, and drug paraphernalia.

This case was investigated by the Iowa Department of Narcotics Enforcement, the United States Drug Enforcement Administration, the Burlington, Iowa, Police Department, and the Southeast Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA B United States Attorney Nicholas A. Klinefeldt announced that a grand jury sitting in the Southern District of Iowa returned an indictment charging Neil Stammer of Albuquerque, New Mexico, with passport fraud in violation of 18 U.S.C. § 1542 and aggravated identity theft in violation of 18 U.S.C. § 1028A(a)(1). Stammer is currently in custody on pending charges in Albuquerque and is not expected to make his initial appearance in the Southern District of Iowa until the conclusion of the pending charges in New Mexico. Stammer faces a potential sentence of up to ten (10) years imprisonment and/or a $250,000 fine if convicted of passport fraud, and a consecutive term of imprisonment of two (2) years if convicted of aggravated identity theft.

The investigation was led by the Diplomatic Security Service.

In accordance with the Iowa Rules of Professional Conduct, the public is reminded that an indictment and a complaint are merely accusations, and that the defendants are presumed innocent until and unless proven guilty. Additionally, because this matter is pending in the United States District Court, the United States Attorney’s Office does not anticipate making any further comment or statement at this time.

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DES MOINES, IA – On September 15, 2014, Angela Shae Ellison, age 47, of Centerville, Iowa, the former owner and CEO of Cornerstone Counseling Center, was sentenced by U.S. District Court Judge Stephanie M. Rose on charges of health care fraud and money laundering, announced U.S. Attorney Nicholas A. Klinefeldt. Ellison was ordered to serve one year and one day in prison, and was ordered to pay $724,359.26 in restitution, and pay $200 to the Crime Victim Fund.

Ellison, who previously worked as a nurse, pled guilty to orchestrating a fraudulent billing scheme in which she directed employees of Cornerstone Counseling Center to bill Medicaid, Wellmark, Aetna, and United Health over 6,000 times using the names and national provider identification number of various doctors who did not perform the services for which the bills were submitted. Many of the fraudulent bills involved the name and identification number of a doctor who never performed any work for the Center. Over $1 million in bogus bills were submitted, and the various insurance entities paid out more than $700,000 in claims.

The case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General, the Iowa Medicaid Fraud Control Unit, the Internal Revenue Service Criminal Investigation, and the Iowa Insurance Fraud Bureau. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On September 11, 2014, Donald Lee Engstrom, age 41, formerly of North Liberty, Iowa, was sentenced by United States District Judge John A. Jarvey to 120 months imprisonment for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Engstrom was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.

Beginning in approximately July 2013 and continuing until about November 14, 2013, Engstrom conspired with other persons to distribute ice methamphetamine in the Muscatine, Iowa, and North Liberty, Iowa areas. On multiple occasions, Engstrom obtained ice methamphetamine in Arizona, ranging in weight from ½ to multiple pounds, and drove it to Iowa where he sold the methamphetamine to various customers. On November 14, 2013, law enforcement intercepted a vehicle occupied by Engstrom as it arrived at the home of co-defendant Terry Joe Burns near North Liberty. The vehicle contained 333 grams of highly pure ice methamphetamine and $9,255 in U.S. currency. Engstrom was traveling to meet Burns because he had arranged a meeting with Burns and an acquaintance of Burns for the purpose of selling that person ½ pound of ice methamphetamine.

Co-defendant Burns has pled guilty to conspiracy to distribute methamphetamine and is awaiting sentencing.

This case was investigated by the Johnson County Drug Task Force, the United States Drug Enforcement Administration, the Iowa Department of Narcotics Enforcement, and the police departments from North Liberty and Iowa City, Iowa. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On September 10, 2014, Kyle Cameron Messerle, age 24, formerly of Iowa City, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 60 months imprisonment for distribution of heroin, announced United States Attorney Nicholas A. Klinefeldt. Messerle was also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.

On or about the night of November 10, 2012, Messerle was at a party in Iowa City and later admitted that he provided a quantity of “china white” heroin to two individuals. That same night, both of these individuals used the heroin provided by Messerle. The next day, one of these individuals was found dead, the result of mixed heroin and ethanol intoxication.

This case was investigated by the United States Drug Enforcement Administration, Johnson County Drug Task Force, and the Iowa City, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On September 11, 2014, Leann Sue Perez, age 39, of Davenport, Iowa, was sentenced by United States District Judge John A. Jarvey for possession with intent to distribute cocaine, announced United States Attorney Nicholas A. Klinefeldt. Perez was sentenced to 40 months in prison, and was ordered to serve three years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.

On June 17, 2013, law enforcement executed a search warrant for a Davenport, Iowa, residence associated with Perez and her co-defendant, Jose Antonio Garcia. At that residence agents located, among other things, over one-half kilogram cocaine, digital scales, and packaging material. Perez possessed this cocaine and intended to distribute some or all of it to other persons. Prior to the June 17 search, Perez and Garcia obtained additional quantities of cocaine from a source of supply and distributed that cocaine to customers in the Davenport, Iowa, area.

On August 15, 2014, Judge Jarvey sentenced co-defendant Jose Antonio Garcia, age 44, of Davenport, Iowa, to 108 months in prison, and also ordered Garcia to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.

This case was investigated by the Davenport, Iowa, 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.

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DES MOINES, IA – Former Iowa resident Christina M. Pender and California resident Robert K. Taylor have pled guilty to defrauding insurance company AIG out of hundreds of thousands of dollars. Taylor also pled guilty to making false statements to a financial institution involving a mortgage fraud scheme in California. Pender pled guilty on April 17, 2014, and Taylor pled guilty on August 27, 2014.

On May 21, 2013, a federal grand jury in the Southern District of Iowa indicted Pender and Taylor for wire fraud. From approximately April 1, 2010 to January 5, 2011, Pender and Taylor perpetrated a scheme whereby Pender, then an AIG insurance adjuster located in West Des Moines, Iowa, approved payments to companies owned by Taylor for expert services that were never provided. Taylor’s companies were based in California, where he resided, and included TEI Group Associates, Inc., TEI Group, Inc., and Equitable Consulting Solutions. Pender also approved payments for expert services that were not provided to another Iowa-based company, MDP Group, which was owned, in part, by her then-boyfriend. All of the alleged services were supposed to be for consulting in furtherance of AIG’s handling of construction defect claims that were in litigation. In total, Pender admitted that she approved approximately $925,406 in payments by AIG for services that were not provided. Taylor received $666,128.98 of those payments.

During the pendency of the prosecution for wire fraud, the Government discovered that Taylor was also part of a mortgage fraud scheme in California. From approximately December 2005 through April 2006, Taylor applied for and received mortgage loans and lines of credit that he used for the purchase and refinance of several real properties in Kingsburg, California. In his mortgage loan and line of credit applications for these properties, Taylor knowingly and fraudulently identified his social security number as a number which he knew was not his social security number in an effort to influence the approval and funding of the loans. Taylor ultimately defaulted on his payment obligations, and the Kingsburg properties were foreclosed. Then, on November 20, 2012, Taylor subsequently filed a petition for bankruptcy using the fraudulent social security number. As a result of Taylor’s false statements for the purpose of obtaining the mortgage loans and lines of credit, Taylor caused lending institutions, including Countrywide Bank, losses of $326,100. Taylor pled guilty to an Information charging him with making false statements to a financial institution.

Pender faces a maximum sentence of 20 years in prison and a fine of $250,000. Taylor faces a maximum sentence of 30 years in prison and a fine of $1 million.

The wire fraud case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.The case involving false statements to a financial institution was investigated by the Federal Deposit Insurance Corporation—Office of Inspector General and prosecuted by the United States Attorney’s Offices for the Eastern District of California and the Southern District of Iowa.

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DES MOINES, IA – On August 22, 2014, Omaha, Nebraska contractor Ram Hingorani pled guilty to Major Program Fraud in the United States District Court for the Southern District of Iowa, announced United States Attorney Nicholas A. Klinefeldt. In addition, one of Hingorani’s companies, Midwest Paving, Inc. (MPI), pled guilty to Money Laundering in furtherance of the scheme. MPI is a U.S. General Services Administration, Department of Defense, and Department of Veteran Affairs contractor. These admissions of guilt by Hingorani follow guilty pleas entered by Midwest Contracting, Inc. (MCI), on August 15, 2014, to Major Program Fraud and Wire Fraud.

On May 22, 2013, a Federal grand jury in the Southern District of Iowa issued a 32-count Indictment charging Hingorani, business partner Ronald Waugh, MCI and MPI, in connection with an approximate $23.5 million Service-Disabled Veteran-Owned Small Business (SDVOSB) fraud scheme. The charges included multiple counts of major fraud, wire fraud, money laundering and conspiracy. Additionally, agents seized approximately $3.9 million from 14 separate financial accounts.

Beginning in May of 2007 and continuing through August of 2010, MCI unlawfully received 45 set-aside and/or sole-source SDVOSB contracts from the U.S. Department of Veterans Affairs and U.S. Department of Defense (DoD), to include contracts involving American Recovery and Reinvestment Act (ARRA) funds. The investigation revealed MCI was a pass-through and/or front company for Hingorani’s other businesses and that Waugh was simply a figurehead or “rent-a-vet,” who was being used for his SDV status. Evidence demonstrates that the non-veteran Hingorani controlled MCI and certified MCI’s SDVOSB status through the General Service Administration’s Central Contractor Registration (CCR) and Online Representations and Certifications Application (ORCA) databases. As a result of falsely certifying MCI’s status as a SDVOSB, MCI received 45 federal contracts that would have otherwise been awarded to legitimate Service-Disabled Veteran Owned Small Business Concerns.

The United States has agreed to dismiss all charges against Ronald Waugh, the service disabled veteran utilized by Hingorani to perpetrate the fraud scheme.

As a result of his plea agreement, Hingorani faces a prison term of up to 24 months and forfeiture of the profits obtained as a result of the fraud scheme. The amount of forfeiture will be determined by the District Court following a sentencing hearing which will be scheduled at a later date. In addition, Hingorani, MCI and MPI are currently suspended and face administrative debarment from obtaining future government contracts.

This case was investigated by the General Service Administration-Office of Inspector General, US Department of Veterans Affairs-Office of Inspector General, the Department of Defense-Office of Inspector General, the Small Business Administration-Office of Inspector General, and the Federal Deposit Insurance Corporation-Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On August 20, 2014, Robert Dale Alexander, age 45, and Maureen Louise Alexander, age 38, both of Eldridge, Iowa, were sentenced by United States District Judge James E. Gritzner on charges related to defrauding the Social Security Administration, announced United States Attorney Nicholas A. Klinefeldt. Robert was sentenced for his conviction for conspiracy to defraud the Social Security Administration. He was sentenced to 10 months imprisonment, ordered to serve 3 years supervised release following the imprisonment, and pay $100 towards the Crime Victims Fund. Maureen was sentenced to 5 years probation for social security fraud, and she was ordered to pay $25 towards the Crime Victims Fund. Robert and Maureen, jointly and severally, were also ordered to repay $25,297.62 to the United States Government and $22,432.01 to the State of Iowa for benefits overpayments.

On December 21, 2010, Robert Alexander submitted an application for disability insurance benefits (SSD) to the Social Security Administration (SSA) in which he, among other things, falsely reported that he had not worked since 2008. In early 2012, Robert began a relationship with Maureen. For the purpose of obtaining SSD benefits for which he was not entitled, he and Maureen agreed to conceal from the SSA the fact that Robert had been working since 2008. Up through the fall of 2013 Robert and Maureen made additional material false statements including to an investigator with the SSA Office of Inspector General in September 2012 and in other SSA proceedings related to Robert obtaining SSD benefits to which he was not entitled.

This case was investigated by the Social Security Administration (SSA); the SSA Office of the Inspector General; and the Iowa Department of Inspections and Appeals. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA - On August 20, 2014, Jose Rodriguez Paz, age 31, a citizen of Mexico, was sentenced by United States District Court Chief Judge James E. Gritzner to 27 months imprisonment, after pleading guilty to illegal re-entry into the United States, announced United States Attorney Nicholas A. Klinefeldt. Rodriguez Paz was also ordered to serve one year of supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund. After serving his sentence, Rodriguez Paz will be turned over to Immigration authorities for removal proceedings.

Rodriguez Paz was given an enhanced sentence based on a 2011 Iowa aggravated felony conviction for possession with intent to deliver cocaine, and after this State drug conviction was deported. Rodriguez Paz was most recently found in the United States on February 24, 2014, when he was turned over to federal authorities after a Muscatine arrest.

This case was investigated by the United States Department of Homeland Security Investigations, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced the indictment of five people for bank fraud based on their participation in a fraudulent property flipping scheme. The defendants are Nathan Smith, Patrick Steven, Jason Springer, Rick Makohoniuk, and Jerod Hogan.

The indictment alleges that the defendants engaged in a scheme to defraud financial institutions from approximately March 2009 to March 2011, in a scheme involving approximately eighteen homes in and around Des Moines, Iowa, and a loss of approximately $400,000.

According to the indictment, Smith and Steven were property flippers who negotiated short sales with lenders on behalf of homeowners. The indictment alleges that, without the lenders’ knowledge, Smith and Steven also purchased the homes in the short sales, and that they and the other defendants deceived the lenders into believing that the price Smith and Steven paid in the short sale was the fair market value. In fact, according to the indictment, without the lenders’ knowledge, Smith and Steven immediately resold the homes for a profit. Springer, a Des Moines attorney, is alleged to have furthered the scheme by conducting the fraudulent real estate closings and collecting a commission for his work. Makohoniuk, a realtor, is alleged to have submitted false documents to a lender with respect to one of the homes involved in the scheme, and Hogan, a mortgage broker, is alleged to have provided Smith and Steven with false documents that were used to deceive lenders.

Steven, Springer, Makohoniuk, and Hogan were arraigned today in federal court, and the trial has been scheduled for September 29, 2014. Smith’s arraignment is scheduled for August 29, 2014.

The investigation was conducted by the Department of Housing and Urban Development – Office of Inspector General and Federal Bureau of Investigation.

In accordance with the Iowa Rules of Professional Conduct, the public is reminded that an indictment is merely accusations, and that the defendants are presumed innocent until and unless proven guilty. Additionally, because this matter is pending in the United States District Court, the United States Attorney’s Office does not anticipate making any further comment or statement at this time.

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DAVENPORT, IA- On August 15, 2014, Christopher Lakeith McAfee, age 37, from Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 84 months imprisonment, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. McAfee was also ordered to serve three years of supervised release following the imprisonment and pay $100 towards the Crime Victims Fund.

On September 10, 2013, a Davenport, Iowa, police officer heard shots fired from a white Cadillac. As the officer began to follow the vehicle, three additional guns shots were fired out of the sun roof of the Cadillac. Members of the Davenport Police Department conducted a traffic stop of this vehicle and identified three occupants, including back seat passenger Christopher McAfee. Officers observed McAfee make movements in the back seat area of the vehicle and McAfee refused repeated commands to get out of the vehicle. Officers had to physically remove McAfee from the Cadillac and found a .380 caliber handgun accessible through a pass through from the back seat into the trunk. Officers also found and seized a .380 caliber handgun clip from McAfee’s pocket and a box of .380 caliber ammunition on the seat where McAfee had been sitting. Officers later recovered spent shell casings from the street areas where the handgun was fired, which were later matched through ballistics testing to the .380 caliber handgun seized from the Cadillac. Previously, in 2007 McAfee was convicted in Iowa state court of willful injury, a felony offense.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Davenport, Iowa, 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 Neighborhoods initiative.

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DAVENPORT, IA - On August 14, 2014, Anthony Darnell Herron, age 23, from Burlington, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 100 months imprisonment, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Herron was also ordered to serve three years of supervised release following the imprisonment, pay $2500 in restitution, and pay $100 towards the Crime Victims Fund.

On October 18, 2013, Herron burglarized a residence in Burlington, Iowa, taking several items, including a Taurus .380 caliber handgun. On October 21, 2013, law enforcement officers searched Herron’s residence and recovered stolen items, including the Taurus .380 caliber handgun, a sawed off Mossberg 12 gauge shotgun, and other electronic items. Previously in 2009, Herron had been convicted in Iowa state court of possession with the intent to deliver marijuana and burglary third degree, both felony offenses.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Burlington, Iowa, 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 Neighborhoods initiative.

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DAVENPORT, IA – On August 15, 2014, Michael Taylor, age 42, of Davenport, Iowa, was sentenced by United States District Judge John A. Jarvey for possession with intent to distribute at least 28 grams of cocaine base, and being a felon-in-possession of a firearm and ammunition, announced United States Attorney Nicholas A. Klinefeldt. Taylor was sentenced to 180 months imprisonment on the drug count and 120 months imprisonment on the firearm count, the sentences to run concurrently. He was also ordered to serve four years supervised release on the drug count and three years on the firearm count, concurrently, following the imprisonment and to pay $200 towards the Crime Victims Fund.

Over the course of many years, beginning in the mid-2000’s and continuing until about September 25, 2013, Taylor distributed cocaine base (“crack cocaine”) in the Davenport, Iowa area. During September 2013, law enforcement utilized a confidential informant to complete a series of controlled purchases of crack cocaine from Taylor while under law enforcement surveillance. Immediately after the final controlled purchase on September 25, police arrested Taylor and he had with him both crack cocaine and currency used to complete the controlled purchase.

On September 25, 2013, law enforcement officers executed search warrants for two residences associated with Taylor. At one residence, agents located, among other things, approximately 105 grams of crack cocaine, a loaded .357 Magnum revolver, $6,430 in U.S. currency, and a digital scale. Prior to his possession of the firearm on September 25, Taylor had been convicted of several crimes punishable by imprisonment exceeding one year.

This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On August 15, 2014, Jose Antonio Garcia, age 44, of Davenport, Iowa, was sentenced by United States District Judge John A. Jarvey for possession with intent to distribute cocaine announced United States Attorney Nicholas A. Klinefeldt. Garcia was sentenced to 108 months imprisonment. He was also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.

Over the course of many years, beginning in the early 2000’s and continuing until about June 17, 2013, Garcia distributed cocaine in the Davenport, Iowa, area. On June 17, 2013, law enforcement officers executed a search warrant for a residence associated with Garcia and his spouse, co-defendant Leann Perez. At that residence agents located, among other things, over one-half kilogram cocaine, digital scales, and packaging material.

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

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COUNCIL BLUFFS, IA – On August 15, 2014, Dennis Seaborn Jones, age 69, of Council Bluffs, Iowa, was sentenced to 121 months in prison on federal child pornography charges in U.S. District Court for the Southern District of Iowa , announced United States Attorney Nicholas A. Klinefeldt. Dr. Jones was also ordered to serve ten years of supervised release after imprisonment, to pay a $100,000 fine, and to pay $100 to the Crime Victims Fund.

Jones pled guilty on May 23, 2014, to knowingly possessing child pornography that included images of a prepubescent child or children under 12 years of age. On May 16, 2013, officers of the Council Bluffs, Iowa, Police Department executed a search warrant at Jones’ residence in Council Bluffs. During forensic analysis of seized computers, external hard drives and other electronic equipment, law enforcement located an estimated 1.2 million images and 9,200 videos of child pornography, including pornography containing minors engaged in sexually explicit conduct.

At the time of the plea of guilty, Jones was a duly licensed pediatrician who practiced in a clinic in Council Bluffs, Iowa.

The case was investigated by law enforcement agents with the Council Bluffs, Iowa, Police Department and the Iowa Division of Criminal Investigations. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IOWA - On Tuesday, July 29, 2014, Macey Lynn Stills, age 23 of West Des Moines, Iowa, was sentenced to 21 months imprisonment for distributing fentanyl, announced United States Attorney Nicholas A. Klinefeldt. Chief District Judge James E. Gritzner also ordered Stills to serve a term of three years supervised release following the term of imprisonment, and to pay a $100 special assessment to the Crime Victim’s Fund.

In early 2013, Stills took fentanyl patches from her place of employment, and subsequently sold them. On January 10, 2013, Stills sold four patches for $160 to an individual who later died that same date from a fentanyl overdose. On March 24, 2014, Stills pled guilty to distribution of fentanyl in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(C).

This investigation was conducted by the Ames, Iowa, Police Department, the Central Iowa Drug Task Force and the Drug Enforcement Administration. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA - On July 28, 2014, Larry Lee Brauer, age 63, from Calamus, Iowa, owner of Lone Wolf Outdoor Supplies was sentenced by United States District Court Judge John A. Jarvey to 14 months imprisonment, after pleading guilty to possession and transfer of an unregistered machine gun, announced United States Attorney Nicholas A. Klinefeldt. Brauer was also ordered to serve one year of supervised release following the term of imprisonment, pay a $5,000 fine, and pay $100 towards the Crime Victims Fund.

In September 2013, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents began an investigation of the potential ongoing possession of machine guns, silencers, and sawed off shotguns at Brauer’s business in Calamus, Iowa, and requested a National Firearms Act (NFA) check on Larry Brauer. An NFA check queries all registered NFA firearms through ATF, and the National Firearms Registration and Transfer Record (NFRTR), which is the central registry of all NFA firearms in the United States. The results of the check show no NFA firearms registered to Brauer.

By federal law, to possess an NFA firearm, it must be registered to the owner in this registration database. Machineguns, silencers, and sawed off shotguns are all NFA firearms which must be registered within the NFRTR. On October 19, 2013, law enforcement officers conducted a controlled purchase of a Norinco, MAK-90 machine gun from Brauer at Lone Wolf Outdoor Supplies. This firearm was later determined to be a functioning machine gun that was required to be registered under the NFA.

On November 13, 2013, law enforcement officers performed a search of Lone Wolf Outdoor Supplies and Brauer’s residence pursuant to federal search warrants. Officers found and seized an additional six sawed off shotguns, a firearm with a silencer, and a second machine gun. None of these firearms were properly registered as required by the NFA.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Davenport, Iowa, Police Department, the Clinton County Sheriff’s Office, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA – Arleigh Joe Esqueda, age 35, of Newton was sentenced to 168 months in prison on federal child pornography charges in U.S. District Court for the Southern District of Iowa on July 28, 2014, announced United States Attorney Nicholas A. Klinefeldt. Esqueda was also ordered to serve eight years of supervised release after imprisonment and to pay $100 to the Crime Victims Fund.

Esqueda pled guilty to knowingly possessing child pornography that included images of a prepubescent child or children under 12.

The sentence imposed on Esqueda was based, in part, on Esqueda’s criminal history and the nature of the offense. According to court documents, Esqueda had over 10 previous state-court convictions for various crimes, including one prior sex offense when he was 17. His collection of child pornography was accumulated over approximately 5 years, and he had 351 images and 77 videos of child pornography on his computer when he was caught by law enforcement officers in 2013.

The case was investigated by law enforcement agents with Homeland Security Investigations, and prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA - On July 28, 2014, Michael Anthony McDaniel, age 46, formerly of Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 84 months imprisonment, after pleading guilty to possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. McDaniel was also ordered to serve five years of supervised release following the term of imprisonment, and to pay $100 towards the Crime Victims Fund. McDaniel will also be required to register as a sex offender.

In March 2011, a member of the Iowa Internet Crimes Against Children Task Force and Dewitt, Iowa, Police Department accessed a shared folder and downloaded child pornography videos and images identified as belonging to McDaniel. On April 25, 2011, a search of McDaniel’s residence was conducted pursuant to a search warrant. Officers found and seized computer equipment and hard drives possessed by McDaniel. McDaniel admitted to possession of this computer equipment and to the knowledge that the involved hard drives contained sexually explicit images of minors. McDaniel downloaded images of child pornography found using a file sharing software and as part of a computer repair business. A forensic examination of the hard drives, seized by the Davenport, Iowa, Police Department, found over 50 videos and 46 images of child pornography.

This case was investigated by the Iowa Internet Crimes Against Children Task Force, the Dewitt, Iowa, Police Department, the Davenport, Iowa, Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On July 28, 2014, Luis Chavez Preciado, age 28, was sentenced by United States District Judge John A. Jarvey to 151 months imprisonment for conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. The defendant was also ordered to serve five years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.

Beginning on approximately May 21, 2013 and continuing until about September 10, 2013, Preciado conspired with others to distribute ice methamphetamine in the Iowa City and Muscatine areas. On seven occasions during the above-mentioned period Preciado or his codefendant, Nasra Lorette Fernandez Kury, sold ice methamphetamine directly to an undercover law enforcement officer. Preciado was aware of each of these transactions and was involved and assisted with many of them. As part of the investigation, law enforcement officers conducted a search of Preciado’s Iowa City residence and seized 1,099 grams of ice methamphetamine, digital scales, a shotgun and ammunition, among other items.

This case was investigated by the Muscatine County Drug Task Force; Iowa Department of Public Safety-Division of Narcotics Enforcement; Johnson County Multijurisdictional Drug Task Force; Johnson County Sherriff’s Office; Muscatine, Iowa, Police Department; Iowa City, Iowa, Police Department; and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA – Harold “Hal” Holmstrom, 76, of Minburn, Iowa, was sentenced on federal child pornography charges on July 23, 2014, to the maximum of 10 years in jail, and a lifetime of supervised release thereafter.

In determining the sentence, U.S. District Court Judge John A. Jarvey of the Southern District of Iowa took into account the fact that Holmstrom had sexually abused five female members of his family decades ago when they were small children, which had gone unreported and therefore unaddressed prior to the federal prosecution. Judge Jarvey described the victim impact statements as among the “most difficult” he has read during his tenure on the bench.

Holmstrom was caught using a computer program to download child pornography from the Internet by U.S. Department of Homeland Security, Homeland Security Investigations special agents in 2012. According to HSI, Holmstrom was one of the top ten most active collectors of child pornography on this particular computer program in all of Iowa between 2010 and 2012.

Holmstrom told case agents he had deleted all traces of child pornography from his computer before it was taken from him by law enforcement authorities in August, 2012, but HSI’s computer forensic team was able to recover evidence that he downloaded over 4,800 images of child pornography. The National Center for Missing and Exploited Children reported 1,286 images were of known victims from 69 different child pornography series. Images involved children under 12, bestiality, and violence.

Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.

The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA- On July 18, 2014, Adrien Jamaal Cole, a 25 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Senior Judge Robert Pratt to 120 months in prison for sex trafficking, to be followed by 10 years of Supervised Release, announced United States Attorney Nicholas A. Klinefeldt.

On March 5, 2014, the defendant pled guilty to the charge which was the result of an investigation conducted by law enforcement into the use of minors as prostitutes in and around the Omaha, Nebraska, Metropolitan area. The defendant had recruited teenage girls to serve as prostitutes and transported them to various locations in Omaha, Nebraska, and Council Bluffs, Iowa, to engage in sexual activities with paying customers.

The investigation was conducted by the Omaha, Nebraska, Police Department, Council Bluffs, Iowa, 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.

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DAVENPORT, IA - On July 17, 2014, Jesse Dewayne Moore, age 26, formerly of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to 120 months imprisonment, after pleading guilty to coercion and enticement of a minor, announced United States Attorney Nicholas A. Klinefeldt. Moore was also ordered to serve ten years of supervised release following the imprisonment and pay $100 towards the Crime Victims Fund. Moore will also be required to register as a sex offender.

On multiple occasions, staff members of the Internet website, meetme.com, reported instances of what appeared to be sexually explicit images of an individual purporting to be a juvenile from Davenport, Iowa. This information was forwarded to the Iowa Division of Criminal Investigation who used records to identify this subject as Jesse Dewayne Moore. At approximately the same time, the Davenport, Iowa, Police Department was conducting an investigation concerning an adult suspect making inappropriate contact with a 13 year old minor. The minor reported meeting Moore on the website, meetme.com, and corresponding with Moore by text messaging. Law enforcement officers obtained a search warrant for text messages off of Moore’s cellular phone. This search warrant found a large number of text SMS messaging between Moore’s phone number and the minor’s phone number. In these text messages, Moore makes numerous references to his desire to have sex with and perform sex acts on the minor. These text messages include a series of texts on January 2, 2013 that discussed arrangements to Page 2 of 2 meet at the library. Later on that same day, the text messages from Moore’s number discussed whether the minor enjoyed giving him oral sex. The text messages also discussed future plans to meet for more oral sex and actual sexual intercourse. Moore later admitted that he posed as a 14 to 15 year old male on the meetme.com website, that he used this website and later his cellphone to make contact with a minor he knew was only 13 years old. Moore admitted that he made arrangements to meet this minor at a Davenport library, and later that day Moore had sexually explicit contact with the minor.

This case was investigated by the Davenport, Iowa, Police Department and the Iowa Department of Public Safety, Division of Criminal Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Child initiative.

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COUNCIL BLUFFS, IA- On July 18, 2014, Danny Joel Hummel, a 60 year-old resident of Essex, Iowa, was sentenced by United States Senior District Court Judge Robert Pratt to sixty months in prison, and ten years of Supervised Release following the period of imprisonment, on the charge of Using a Computer to Transport Obscene Material, announced United States Attorney Nicholas A. Klinefeldt.

On July 11, 2014, Hummel pled guilty to the charge, which was the result of his obtaining images in December of 2013 from an off-site electronic data storage location. At the time of the offense, Hummel was under the supervision of the United States Probation Office for the Southern District of Iowa after having been sentenced for Possession of Child Pornography in a prior case.

The investigation was conducted by the United States Probation Office for the Southern District of Iowa and the Iowa Division of Criminal Investigation, Cyber Crimes Unit. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On July 17, 2014, Delbert Lorenzo Sykes, Jr., age 34, and Darross Tyrese Sykes, age 30, both of Davenport, Iowa, were sentenced by United States District Judge Stephanie M. Rose for conspiracy to distribute cocaine base, cocaine, and marijuana announced United States Attorney Nicholas A. Klinefeldt. Delbert Sykes, Jr. was sentenced to 108 months imprisonment. Darross Sykes was sentenced to 72 months’ imprisonment. Both were also ordered to serve four years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund. Judge Rose also ordered the forfeiture of all remaining property listed in the Indictment including $130,400 in United States Currency, a 2010 Chevrolet Camaro registered to Delbert Sykes, and a Ruger .40 caliber handgun and ammunition, all seized from Delbert Sykes, Jr.’s residence.

Over the course of many years, beginning in the early 2000’s and continuing until about August 2013, Delbert Sykes, Jr. and Darross Sykes conspired with each other and other persons to distribute cocaine base, cocaine, and marijuana in the Davenport, Iowa area. Specifically, during the above-mentioned time period law enforcement completed numerous controlled purchases of drugs from the Sykes’, including purchases of ounce quantities of crack cocaine and cocaine. In August 2013, law enforcement executed several search warrants for residences associated with the Sykes. At Delbert Sykes, Jr.’s residence agents located, among other things, $130,400 in U.S. Currency which included drug proceeds, a Ruger .40 caliber handgun and Page 2 of 2 ammunition, a digital scale with cocaine residue, and packaging material. Items associated with drug trafficking were seized from the other searched residences, all of which were in Davenport.

This case was investigated by the Iowa Department of Narcotics Enforcement; the United States Drug Enforcement Administration; and the Davenport, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA - On July 17, 2014, Orlando Antwoin Brown, age 31, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 46 months imprisonment, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Brown was also ordered to serve three years of supervised release following the imprisonment and pay $100 towards the Crime Victims Fund.

On July 12, 2013, law enforcement officers executed a search warrant at a residence in North Liberty, Iowa. In this apartment, law enforcement officers found and seized several items including: a digital scale in a kitchen cabinet; a marijuana grinder; a green book bag on the kitchen floor containing approximately 2.9 ounces of marijuana and 11 individually wrapped rocks of crack cocaine, ecstasy pills; and a loaded Springfield Armory Model XD 9 mm handgun found in a kitchen drawer. This same firearm was identified as stolen in a 2012 Iowa City burglary. Brown had a residence in Coralville, but was distributing drugs out of the North Liberty location. Brown admitted that the Springfield Armory Model XD 9 mm handgun and the 9 mm ammunition belonged to him, that he knew this firearm and ammunition were located in the kitchen where they were found, and that he had access and control over this firearm.

This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Johnson County Drug Task Force, the Iowa Department of Public Safety-Division of Narcotics Enforcement and the North Liberty, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA - On Wednesday, July 2, 2014, the last of ten defendants from the Des Moines, Iowa, area was sentenced on federal drug trafficking charges announced United States Attorney Nicholas A. Klinefeldt. Andres “Andy” Gomez, III, age 26, of Altoona, Iowa, was sentenced to 48 months imprisonment for conspiracy to distribute methamphetamine. District Judge John A. Jarvey also ordered Gomez to serve a term of four years supervised release following the period of imprisonment. The other nine defendants were previously sentenced for conspiracy to distribute methamphetamine following their guilty pleas. Juan Carlos Hernandez Gonzalez, age 33 of Des Moines, was sentenced to 300 months imprisonment and ordered to serve a term of 5 years supervised release following imprisonment. Miguel Bazan Cardenas, age 36 of Des Moines, was sentenced to 90 months imprisonment followed by 5 years supervised release. Bertoldo Zuniga, age 60 of Des Moines, was sentenced to 48 months imprisonment followed by 3 years supervised release. Azael Bernal Balderas, age 31 of Des Moines, was sentenced to 60 months imprisonment followed by 5 years supervised release. Ubaldo Carrasco Alcantar, age 46 of Des Moines, was sentenced to 30 months imprisonment followed by 3 years supervised release. Josue Castaneira Cruz, age 34 of Des Moines, was sentenced to 27 months imprisonment followed by 3 years supervised release. Gabriel Carrasco, age 32 of Des Moines, was sentenced to time served and was also ordered to serve 3 years supervised release with special conditions of 4 months in a residential facility followed by 4 months house arrest. Beverly Ann Hickcox, age 61 of Des Moines, was sentenced to 18 months imprisonment followed by 3 years supervised release. Danny Lee Iseminger, age 54 of Newton, was sentenced to 104 months imprisonment followed by 5 years supervised release. Each defendant was also ordered to pay a special assessment to the crime victim’s fund.

This organization was responsible for the distribution of highly pure methamphetamine in the Des Moines area from at least 2009 through 2012. The investigation culminated in the execution of multiple search and arrest warrants in December 2012. The organization received shipments of 30 pounds of methamphetamine at a time that originated from Mexico. Bulk cash shipments of drug proceeds were sent to Mexico by the organization, which was headed in the Des Moines area by Juan Carlos Hernandez Gonzalez. During the searches conducted in December 2012, agents seized 1.9 kilograms of 100% pure methamphetamine, $117,749 in drug proceeds and 17 firearms. Other properties, including a vehicle and residence, were also seized and forfeited as a result of the investigation.

The case was the result of the multiple-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this case included the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Des Moines, Iowa, Police Department, the Homeland Security Investigations, the Internal Revenue Service Criminal Investigations, the Iowa Division of Criminal Investigations, the Iowa Division of Intelligence, the Iowa National Guard Counter-Drug Unit, the Iowa State Fire Marshals, the Iowa State Patrol, the Mid-Iowa Narcotics Enforcement Task Force and Urbandale, Iowa, Police Department. This case was prosecuted in the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA – On July 2, 2014, James Wiley Brock, a resident of Newton, Iowa, was sentenced in United States District Court by Judge John A. Jarvey to 8 years in prison for possessing child pornography announced United States Attorney Nicholas A. Klinefeldt.

Brock admitted he knowingly possessed child pornography on or about July 2, 2013, namely VHS tapes and computer media that contained one or more visual depictions of child pornography. Specifically, Brock produced the visual depictions by, among other things, using cameras hidden in his residence to film teenagers using a tanning bed in his home.

Brock was also ordered to forfeit his home, where he produced the videos, and all equipment used to commit the offense.

The case was investigated by the United States Department of Homeland Security/Immigration and Customs Enforcement, the Newton, Iowa, 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.

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COUNCIL BLUFFS, IA - On July 1, 2014, Arthur J. Hulett, a 52 year-old resident of Missouri Valley, Iowa, was sentenced by United States District Court Judge John Jarvey to 108 months in prison, and six years of supervised release following the period of imprisonment, on the charge of possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt.

On February 6, 2014, the defendant pleaded guilty to the charge, which was the result of an investigation conducted by law enforcement into the distribution of methamphetamine in and around Harrison County, Iowa. The investigation revealed that methamphetamine was being distributed by the defendant and susequently transported from Harrison County, Iowa, into counties in Western Iowa and Eastern Nebraska.

The investigation was conducted by the Missouri Valley, Iowa, Police Department, Harrison County, Iowa, Sheriff’s Office, Iowa State Patrol, Burt County, Nebraska, Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the United States Marshal’s Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced today the arrest and indictment of MoYun, for conspiracy to steal trade secrets. Mo Hailong was previously arrested in December of 2013. The Superseding Indictment alleges that from on or about January of 2007, to on or about December of 2012, Mo Hailong, Mo Yun and other individuals conspired to steal the trade secrets of several U.S. based seed manufacturing companies, and transport those trade secrets to China for the benefit of their China-based seed company.

Mo Yun is a Chinese national who was employed by Beijing Dabeinong Technology Group Company (DBN) from August 2001 to March 2009. DBN is believed to be a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed. Born in 1972, Mo Yun was in charge of DBN’s research project management. Yun is the sister of Mo Hailong and the spouse of DBN founder and current chairman Dr. Shao Genhuo.

During the course of the conspiracy, Mo Yun, Mo Hailong and others are alleged to have conspired to steal valuable inbred corn seed from production fields in Iowa and Illinois. This “inbred” or “parent” line of seed constitutes valuable intellectual property of a seed producer. After stealing the inbred corn seed, conspirators attempted to covertly transfer the inbred corn seed to China.

The investigation was initiated when DuPont Pioneer security staff detected suspicious activity, and alerted the Federal Bureau of Investigation (FBI). DuPont Pioneer, Monsanto and their staff have been fully cooperative throughout the investigation, which is being led by the FBI.

“The FBI’s investigation into Mo Yun should not go unnoticed by those who seek to steal trade secrets and private business information,” said Thomas R. Metz, Special Agent in Charge of the Omaha Division of the FBI. “Identifying and deterring those focused on stealing trade secrets, propriety and confidential information or national security information is the number two priority for the FBI second only to terrorism.”

In accordance with the Iowa Rules of Professional Conduct, the public is reminded that a criminal indictment constitutes facts supporting probable cause, and that the defendants are presumed innocent until and unless proven guilty.

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DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced that Dr. Dong Pyou Han appeared in United States District Court today before the Honorable Celeste F. Bremer, and was arraigned on an Indictment that charges him with four counts of making a false statement.

According to the Indictment, while conducting research on behalf of Iowa State University, Dr. Han falsified scientific data to make it appear an experimental HIV/AIDS vaccine, gp41, neutralized, or controlled, the HIV/AIDS virus in rabbits, when in fact the vaccine did not. The Indictment further alleges that Dr. Han spiked sera samples from gp41-immunized rabbits with human sera containing HIV antibodies. The spiking of the rabbit samples made it appear that gp41 produced neutralizing antibodies against the HIV/AIDS virus. The false data was reported to the National Institutes of Health in a research grant application and funded grant progress reports.

A jury trial is scheduled to commence on September 2, 2014, before Chief Judge James E. Gritzner.

Each count of making a false statement carries a maximum term of five years imprisonment, up to a $250,000 fine, and up to three years of supervised release. An indictment is merely an accusation, and Dr. Han is presumed innocent until and unless proven guilty.

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COUNCIL BLUFFS, IA - On July 1, 2014, Sharon Jean Manchester, a 51 year-old resident of Farragut, Iowa, was sentenced by United States District Court Judge John Jarvey to a year and one day in prison, and three years of supervised release following the period of imprisonment, announced United States Attorney Nicholas A. Klinefeldt. Manchester entered a guilty plea on February 6, 2014, to committing Social Security Fraud from October, 2008, up to July of 2013. Manchester was also ordered to pay restitution to the Social Security Administration in the amount of $48,815.93.

The charge was the result of an investigation into the payment of funds by the Social Security Administration to Sharon Manchester which were based on Sharon Manchester’s claim that she was not receiving financial support from her husband, co-defendant Andrew Manchester. Investigation showed that during the entire period of time Sharon Manchester claimed to be unsupported by Andrew Manchester, he did provide financial support that made Sharon Manchester ineligible for Social Security benefits.

Co-defendant Andrew Manchester pleaded guilty previously to the charge of possession of a false document, and is awaiting sentencing.

The investigation was conducted by the Fremont County, Iowa, Sheriff’s Office, Page County, Iowa, Sheriff’s Office, and the Social Security Administration - Office of the Inspector General. The case was prosecuted by the United States Attorney’s Office for Southern District of Iowa.

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DAVENPORT, IA – On June 20, 2014, Thuan Van Nguyen, age 28, was sentenced by United States District Judge John A. Jarvey to 34 months’ imprisonment for Felon in Possession of a Firearm and Possession with Intent to Distribute Marijuana, announced United States Attorney Nicholas A. Klinefeldt. Nguyen was also ordered to serve two years supervised release following the imprisonment, forfeit $2,010 in cash and the firearm he possessed, and pay $200 towards the Crime Victims Fund.

On April 12, 2013, Davenport police searched Nguyen’s vehicle and residence pursuant to search warrants. In the vehicle, police located approximately 2 pounds of marijuana. In Nguyen’s residence, police located a rifle under Nguyen’s bed, packaging materials consistent with marijuana distribution, and $950 in currency. Police also seized $1,060 in currency on Nguyen’s person. Prior to April 12, 2013, Nguyen had been convicted of two felony crimes.

This case was investigated by the Davenport Police Department and the United States Bureau of Alcohol, Tobacco and Firearms (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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