Southern District of Iowa

DES MOINES, IA – Colin Boone, previously employed as an officer of the Des Moines, Iowa, Police Department, was indicted on Tuesday, December 17, 2013, on the charge of deprivation of rights under color of law for assaulting a civilian during the course of an arrest on February 19, 2013, announced United States Attorney Nicholas A. Klinefeldt. Boone was arrested in South Dakota this morning, and is scheduled to have an initial appearance before a U.S. Magistrate Judge in Sioux Falls, South Dakota at 3:15 p.m. this afternoon.

The charge of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, carries a maximum penalty of ten years in prison and a maximum fine of $250,000. The indictment specifically charges that Boone physically assaulted the victim by kicking him, resulting in bodily injury.

Today’s indictment is the result of an investigation conducted by the Des Moines Resident Office of the Federal Bureau of Investigation. Prosecution of this matter is being handled by the U.S. Attorney’s Office for the Southern District of Iowa and the Civil Rights Division of the U.S. Department of Justice.

The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.

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DES MOINES, IA - Nicholas A. Klinefeldt, United States Attorney for the Southern District of Iowa, announced the conclusion of a multi-agency investigation of internet-related child pornography crimes in the Southern District of Iowa.

The investigation, spearheaded by Homeland Security Investigations-Des Moines, Iowa, centered on the trading of child pornography pictures and videos on peer-to-peer file-sharing networks. Five defendants were charged and convicted in separate prosecutions and were sentenced to a combined total of more than 43 years in prison: Francisco Zayas (Marshalltown), 240 months; Monroe Wardlow (Grinnell), 96 months; Enrique Guzman (Osceola), 80 months; William Trimble, Jr. (Albia), 60 months; and Michael Hanold (Creston), 48 months. After serving their terms of imprisonment, each defendant will be required to serve a term of supervised release of at least 5 years and to register as a sex offender.

Other law enforcement agencies assisting with the operation included the Iowa Division of Criminal Investigation, and the Iowa police departments of Albia, Creston, Grinnell, Marshalltown, and Osceola. The cases were prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of its “Project Safe Childhood” initiative.

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DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced the arrest of Mo Hailong, also known as Robert Mo, for conspiracy to steal trade secrets. The criminal complaint alleges that from on or about September of 2011, to on or about October of 2012, Mo Hailong 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 Hailong is a Chinese national who became a Lawful Permanent Resident (LPR) in the United States pursuant to an H-1B visa. Mo Hailong is employed as the Director of International Business of the Beijing Dabeinong Technology Group Company, which is part of DBN Group. DBN Group is believed to be a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed.

During the course of the conspiracy, Mo Hailong and others are alleged to have stolen 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, the 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.

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

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DAVENPORT, IA - On December 5, 2013, Ricardo Ibarra Toscano, a 39 year-old citizen of Mexico, was sentenced by United States District Court Judge John A. Jarvey to 60 months in prison, after pleading guilty to illegal re-entry into the United States as an aggravated felon, announced United States Attorney Nicholas A. Klinefeldt. After serving his sentence, Ibarra Toscano will be turned over to immigration authorities. If he is not deported, then he will be subject to a term of supervised release of three years. Ibarra Toscano was also ordered to pay $100 to the Crime Victims Fund. Ibarra Toscano had been deported on four prior occasions and had five prior drug convictions, including one in 2002 for manufacturing methamphetamine. Ibarra Toscano was found in Muscatine County, Iowa, in March 2013, after pleading guilty to interference with official acts.

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

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DAVENPORT, IA - On December 5, 2013, Norman Dudley, age 22, from Iowa City, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 26 months in prison, after pleading guilty to distribution of cocaine base (“crack”), announced United States Attorney Nicholas A. Klinefeldt. Dudley was also ordered to serve three years of supervised release, following the period of imprisonment, and to pay $100 towards the Crime Victims Fund.

In a related case, John Mulbah, age 22, from Iowa City, Iowa, was also sentenced by United States District Court Judge John A. Jarvey to 72 months in prison, after pleading guilty to conspiracy to distribute cocaine base (“crack”), announced United States Attorney Nicholas A. Klinefeldt. Mulbah was also ordered to serve four years of supervised release following the period of imprisonment, and to pay $100 towards the Crime Victims Fund.

As part of the investigation, law enforcement officers made controlled purchases of crack cocaine from Mulbah on August 10, August 13 and August 14. During the purchase on August 14, 2012, both Dudley and Mulbah distributed crack cocaine as part of a controlled transaction with law enforcement officers. Mulbah admitted as part of the plea proceedings that between August 14 and August 17, 2012, he was involved with Norman Dudley and others in an agreement to distribute crack cocaine.

This case was investigated by the Iowa Department of Public Safety-Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, the Iowa City, Iowa, Police Department and the Johnson County Sheriff’s Office. 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 26, 2013, Ismael Corrales Portillo, a 42 yearold resident of Phoenix, Arizona, was found guilty of conspiracy to distribute 500 grams or more of methamphetamine, and one kilogram or more of heroin; possession with intent to distribute 500 grams or more of methamphetamine; and possession with intent to distribute one kilogram or more of heroin, announced Nicholas A. Klinefeldt, U.S. Attorney for the Southern District of Iowa. The trial was presided over by United States District Court Judge John A. Jarvey. All three charges carry a potential sentence of up to life in prison, a fine up to $10 million, and at least five years of supervised release. All three charges also carry a mandatory minimum sentence of ten years in prison. A sentencing date has not yet been set.

The evidence produced at trial showed that Corrales Portillo worked together with his brother, Jose Corrales Portillo, to transport from Phoenix, Arizona, approximately three pounds of methamphetamine and seventeen pounds of heroin. On July 13, 2013, the brothers stopped in Des Moines, Iowa to deliver three pounds of methamphetamine.

While in Des Moines, the Narcotics Section of the Des Moines Police Department conducted an operation that resulted in the seizure of the heroin and methamphetamine, which were concealed inside the gas tank of a vehicle.

Jose Corrales Portillo pled guilty on November 20, 2013, and the sentencing proceeding is scheduled for March 27, 2014.

The investigation was conducted by the Des Moines, Iowa, Police Department, with assistance from the Drug Enforcement Administration and the Mid-Iowa Narcotics Enforcement Task Force. The case was prosecuted by the U.S. Attorney's Office for the Southern District of Iowa.

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DAVENPORT, IA – On November 20, 2013, Kurt James Brookhart, age 46, was sentenced by United States District Judge John A. Jarvey to 110 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. Brookhart was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.

In a related case, Nahida Amira Buchheit, age 38, was also sentenced on November 20, 2013, by United States District Judge John A. Jarvey to 68 months’ imprisonment for conspiracy to distribute five grams or more of actual methamphetamine. Buchheit 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 November 2011 and continuing until about April 10, 2012, Brookhart and Buchheit conspired with Tony Henry Young, Cesar Alexis Gonzalez, and others to distribute methamphetamine in the Washington County, Iowa, area. During this time period Brookhart and Young received “ice” (also known as “crystal”) methamphetamine from Young’s nephew, Gonzalez. Gonzalez obtained the methamphetamine from a source in Arizona, and then shipped the methamphetamine via parcel services to Brookhart’s residence in Wellman, Iowa, where Brookhart resided with Young and Buchheit. Brookhart received a portion of the methamphetamine from each package as did Young. Brookhart distributed some amount of that methamphetamine to other individuals. On March 22, 2012, law enforcement intercepted a parcel sent by Gonzalez to the Wellman residence. That parcel contained approximately 200 grams of ice methamphetamine.

On October 16, 2012, Chief Judge James E. Gritzner sentenced Tony Henry Young to 135 months imprisonment and five years of supervised release following imprisonment for conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine. Cesar Alexis Gonzalez has pled guilty to conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine, and is pending sentencing.

This case was investigated by the Washington-Louisa County Drug Task Force and the Iowa Department of Public Safety - 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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DAVENPORT, IA - On November 15, 2013, Elbert Lee Karr, Jr., age 48, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 151 months imprisonment, after pleading guilty to bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Karr was also ordered to serve three years of supervised release following the period of imprisonment, and to pay $2,920 in restitution and $100 towards the Crime Victims Fund.

On October 22, 2012, Karr entered the Family Credit Union in Davenport, Iowa, received cash after presenting a demand note, and left the bank. Karr was arrested later that evening, after refusing repeated attempts by law enforcements to stop while driving a stolen semi-tractor. Karr was found in possession of some of the stolen money and admitted committing the robbery.

This case was investigated by the Federal Bureau of Investigations, the Davenport, Iowa, Police Department, the Iowa State Highway Patrol, and the Cedar County Sheriff’s 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 November 14, 2013, Rodney Eugene Hughes, a 63 year-old resident of Mayfield, Pennsylvania, doing business as Midwest USA Outfitters, Cantril, Iowa, was found guilty in federal court of seven counts of the unlawful sale and/or acquiring of deer, taken and transported in interstate commerce, announced United States Attorney Nicholas A. Klinefeldt. In addition, Mr. Hughes was found guilty of six counts of willfully submitting false information as to the licensing of said deer that was intended to be transported in interstate commerce. Penalties for said crimes include a fine not more than $250,000, imprisonment for not more than five years, or both.

The evidence produced at trial showed that Hughes owned and operated a hunting guide service in Southern Iowa known as Midwest USA Outfitters. In 2008, several non-resident hunters came to Southern Iowa to hunt with Midwest USA Outfitters. These hunters came knowing they did not possess a buck tag, but were told by Hughes that he would provide them with a resident buck tag. Hughes had relatives and friends obtain hunting tags and used these tags to place on the non-resident hunters’ kill. Hughes would then report or cause to be reported the tag information to the State of Iowa by inputting the tag number belonging to people other than the hunters. This is in violation of the Lacey Act, Title 16 U.S. Code Sections 3372 and 3373; in addition to Iowa State Code Sections 483A.1; 483A.26; 483A.38; and various Iowa Administrative Code Sections.

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

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COUNCIL BLUFFS, IA - On November 12, 2013, Marlene Lucille Moore, a 61 year-old resident of Glenwood, Iowa, was sentenced by United States District Court Judge John Jarvey to six months in prison followed by six months of home confinement for theft of funds from the Social Security Administration, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Moore to serve three years of supervised release when she completes her imprisonment, and ordered Moore to pay restitution to the Social Security Administration in the amount of $164,852.

On July 3, 2013, Moore pled guilty to theft of funds of the United States. The charge was the result of an investigation into the payment of funds by the Social Security Administration to a bank account set up to receive funds for an eligible recipient. The Social Security Administration had learned that the recipient had died in 2001. The investigation revealed that Moore removed money from the account from 2001 until August of 2012, taking $164,852 from the account without authority.

The investigation was conducted by the Social Security Administration-Office of the Inspector General, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA- On November 12, 2013, Gregory Allen Jennings, a 42 year-old resident of Atlantic, Iowa, was sentenced by United States District Court Judge John Jarvey to 46 months in prison for possessing a stolen firearm, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Jennings to serve three years of supervised release when he completes his imprisonment.

On November 12, 2013, Jennings pled guilty to knowingly possessing a stolen firearm. The charge was the result of an investigation into firearms which were stolen from a vehicle in Atlantic, Iowa, in January of 2013. The investigation revealed that Jennings had received the firearm shortly after it was stolen, and was attempting to sell the firearm when it was located by law enforcement.

The investigation was conducted by the Atlantic, Iowa, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced that on November 7, 2013, Michael James Allison, age 48, of Marshalltown, was sentenced to 24 months in federal prison based on his earlier guilty plea to mail fraud in connection with a scheme to defraud his employer through the mailing of fraudulent expense reports for reimbursement. Sentence was imposed by United States District Judge John A. Jarvey. Judge Jarvey also ordered that Allison serve three years of supervised release following his release from federal prison.

Allison also will be required to pay restitution to the victim of his offense. Judge Jarvey will issue an order at a later date, which will set forth the amount of restitution to be paid.

According to the written plea agreement, Allison, while in his position as Chief Financial Officer and Director of Finance of a regional subsidiary of Airgas, Inc., mailed falsified expense reports to the region’s accounting office. Allison categorized personal expenses as business expenses and fabricated expenses on the reports. In one instance, Allison claimed he was entitled to reimbursement for approximately $9,000 for Ryder Cup golf tickets and expenses, when the tickets were for his personal use. Based on the evidence presented at the sentencing hearing, Allison obtained more than $400,000 as a result of his scheme over a period of approximately ten years.

This case was investigated by the Federal Bureau of Investigation, following a referral from Airgas, Inc., and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA - On November 7, 2013, Randy Eugene Doss, a 51 year-old resident of Exira, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to thirty months in prison for possessing a firearm after a felony conviction, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge Gritzner also ordered Doss to serve two years of supervised release when he completes his imprisonment.

On August 1, 2013, Doss pled guilty to being a convicted felon in possession of a firearm. The charge was the result of a June 12, 2013, search by law enforcement of Doss’ home in Exira, Iowa, in which a loaded .410 shotgun was located by the front door of the residence.

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

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COUNCIL BLUFFS, IA - On November 7, 2013, Justin Ray Smith, a 27 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Chief Judge James Gritzner to 60 months in prison for maintaining a drug involved premises, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge Gritzner also ordered Smith to serve a two-year term of supervised release following incarceration.

On February 8, 2013, Smith pled guilty to maintaining a drug involved premises. The charge was the result of an investigation conducted by several law enforcement agencies into the importation and distribution of marijuana by a known drug trafficking group operating in the Council Bluffs, Iowa, and Omaha, Nebraska, area. Marijuana was distributed by the group from May of 2009, through March of 2012. Smith maintained a residence located at 19544 Monument Road, Council Bluffs, Iowa, as a storage location and distribution point for the drug trafficking organization.

Prior to sentencing Justin Smith, Chief Judge James Gritzner sentenced co-defendants as follows:

On March 8, 2013, Christopher Brandt, a 30 year-old resident of Council Bluffs, Iowa, was sentenced to 36 months imprisonment for conspiracy to distribute marijuana.

On April 18, 2013, David L. Lopez, Jr., a 40 year-old resident of Omaha, Nebraska, was sentenced to 48 months in prison for conspiracy to distribute marijuana;

On May 31, 2013, Dennis Smith, a 28 year-old resident of Council Bluffs, Iowa, was sentenced to 84 months in prison for conspiracy to distribute marijuana and money laundering;

On May 31, 2013, Nicholas Barnes, a 26 year-old resident of Council Bluffs, Iowa, was sentenced to 48 months in prison for conspiracy to distribute marijuana; and

On May 31, 2013, Gene Smith, a 29 year-old resident of Council Bluffs, Iowa, was sentenced to 41 months in prison for maintaining a drug involved premises;

The investigation was conducted by the Council Bluffs, Iowa, Police Department, the Southwest Iowa Narcotics Task Force, Omaha, Nebraska, Police Department, the Iowa Division of Narcotics Enforcement, the Pottawattamie County Attorney’s Office, the Internal Revenue Service-Criminal Investigation, and the Drug Enforcement Administration. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On November 6, 2013, McFerry Tolbert, Jr., age 30, was sentenced by United States District Judge John A. Jarvey to 240 months in prison for conspiracy to distribute, and possess with intent to distribute, 280 grams or more of cocaine base, announced United States Attorney Nicholas A. Klinefeldt. Tolbert 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 June 2012 and continuing until about November 27, 2012, Tolbert purchased cocaine base, also known as “crack,” and conspired with others to redistribute the drug in the Davenport, Iowa area. As part of the investigation, Davenport police conducted several controlled purchases of cocaine base from Tolbert in October and November 2012. Law enforcement officers also executed a search warrant at Tolbert’s Davenport residence and seized, among other items, cocaine base and a digital scale. When Tolbert was arrested he had 14 individually packaged pieces of cocaine base on his person.

This case was investigated by the Davenport, Iowa, Police Department, the United States Drug Enforcement Administration, and the Iowa Department of Public Safety - 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 - On Thursday, October 31, 2013, Walter Thomas Meyer, age 69, a retired professor of physics and astronomy at Iowa State University, was sentenced for possession of child pornography, announced U.S. Attorney Nicholas A. Klinefeldt. Mr. Meyer pled guilty to the charge of possession of child pornography on July 24, 2013.

Chief Judge James E. Gritzner sentenced Mr. Meyer to time served, twelve months of home confinement, and five years of supervised release. The sentence of time served was imposed, in part, because the images and movies of prepubescent boys did not depict sexual assault. As a consequence of his conviction, Mr. Meyer will be required to register as a sex offender.

This case was investigated by the United States Postal Inspection Service, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On October 23, 2013, David Gabriel Morago, age 34, of Redwood Valley, California, was sentenced by Chief United States District Judge James E. Gritzner to 110 months in prison for conspiracy to distribute at least 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Morago 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 October 2010 and continuing until about October 27, 2012, Morago conspired with other persons to distribute marijuana in the Davenport, Iowa, area. On multiple occasions Morago packaged multiple kilograms of marijuana at or near his residence in California, and then assisted persons in concealing that packaged marijuana in vehicles for transport from Northern California to the Davenport area. The marijuana was delivered to recipients specified by Morago for those recipients’ further distribution. Recipients of marijuana included co-defendants John Michael Masterson, formerly of Davenport, and Autumn E. Skelton, formerly of Port Byron, Illinois. On October 8, 2013, Chief Judge Gritzner sentenced Masterson to 24 months in prison and three years of supervised release following imprisonment for conspiracy to distribute marijuana. Skelton has pled guilty to conspiracy to distribute marijuana and is awaiting sentencing.

This case was investigated by the United States Drug Enforcement Agency - Quad Cities Metropolitan Enforcement Group; Davenport, Iowa, Police Department; South Dakota Highway Patrol; South Dakota Division of Criminal Investigation; and Mendocino County California Sherriff’s Office. 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 18, 2013, Nathan Wayne Smith, a 47 year-old resident of Lexington, Missouri, was found guilty in federal court of robbing the Great Western Bank of Hamburg, Iowa, announced U.S. Attorney Nicholas A. Klinefeldt. The trial was presided over by United States District Court Chief Judge James E. Gritzner. Sentencing has been set for January 29, 2014. Bank robbery carries a potential sentence of up to twenty years in prison, a $250,000 fine, and restitution.

The evidence produced at trial showed that Smith traveled from his home in Lexington, Missouri, to Hamburg, Iowa, arriving at the Great Western Bank around 9:30 a.m. on June 11, 2012. Smith approached a teller in the bank, placed a plastic bag on the counter in front of the teller, and told the teller to fill the bag with money. After obtaining the money from the teller, Smith ran from the bank.

Smith was identified as the party responsible after he was stopped by the Buckner, Missouri, Police Department later in the day on June 11, 2012. Buckner, Missouri, is approximately 150 miles south and east of Hamburg, Iowa.

The investigation was conducted by the Fremont County Sheriff’s Office, the Buckner, Missouri, Police Department, the Lexington, Missouri, Police Department and the Federal Bureau of Investigation. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA - On October 18, 2013, Ceneca Romale Johnson, age 32, from Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 262 months in prison, for bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey ordered Johnson to serve five years of supervised release following imprisonment, and pay $100 towards the Crime Victims Fund. No fine was imposed. In June of 2013, Johnson pled guilty to robbing the Southeast National Bank in Davenport, Iowa, while armed with an imitation pistol. Johnson was apprehended a short distance from the bank by officers of the Davenport, Iowa, Police Department that same day. The stolen money was recovered.

This case was investigated by the Davenport, Iowa, Police Department and the Federal Bureau of Investigation, and 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 that the last of three Iowa restaurant owners and operators was sentenced for harboring illegal aliens and for filing false statements on the restaurant’s tax returns by not listing the illegal aliens as employees.

On September 20, 2013, Chief Judge James E. Gritzner sentenced Ali Bayram to two years of probation, restitution to the IRS of $15,986.00, a $10,000 fine, and a $200 special assessment payable to the Crime Victim Fund. Chief Judge Gritzner sentenced Fikret Bayram on August 15, 2013, to two years of probation, restitution of $15,788.64 due to the IRS, a $10,000 fine, and a $200 special assessment payable to the Crime Victim Fund. Judge Ronald E. Longstaff sentenced Ali Sengul on August 9, 2013, to two years of probation, restitution of $15,313.00 due to the IRS, and a $200 special assessment to the Crime Victims Fund.

Ali Bayram, 60, Oskaloosa, Iowa, ran the Oskaloosa Family Restaurant in Oskaloosa, Iowa. Fikret Bayram, 59, Monmouth, Illinois, also operated the Oskaloosa Family Restaurant. Ali Sengul, 44, Pella, operated the Tulip Garden Restaurant in Pella, Iowa. All three men hired illegal aliens knowing the individuals were not in the country legally and had no permission to work. The men also provided housing to the illegal workers. Each signed tax forms for the restaurants which failed to report the illegal aliens as employees.

These cases were the result of a two-year investigation conducted by Homeland Security Investigations and IRS Criminal Investigation. The cases were prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA - On September 18, 2013, Princeton C. Baker, a 25 year-old former resident of Omaha, Nebraska, was sentenced by United States District Court Chief Judge James Gritzner to 51 months in prison for escape from a federal facility. Judge Gritzner also ordered Baker to serve three years of supervised release when he completes his imprisonment. On July 3, 2012, Baker entered a guilty plea to escape from a federal facility. The basis for the charge and plea was that on November 6, 2012, Baker was transferred to a halfway house in Council Bluffs, Iowa, to complete a 27 month sentence imposed by the Federal District Court for the District of Nebraska. On November 7, 2013, Baker complained of feeling ill and staff from the CH, Inc. halfway house transported Baker to a medical facility. While being transported from the medical facility to a secure facility, Baker jumped from the moving transport vehicle and attempted to take several cars before being apprehended by Council Bluffs, Iowa, police. Judge Gritzner ordered that the 51 months be served consecutively to the prison time Baker is currently serving for attempted robbery in the State of Iowa.

The investigation was conducted by the Council Bluffs, Iowa, Police Department and the United States Marshal’s Service, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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Davenport, Iowa - On September 17, 2013, Charles Arthur Ruhl, Jr., age 59, of Davenport, Iowa, pled guilty pursuant to a plea agreement to one count of wire fraud and one count of money laundering, announced United States Attorney Nicholas A. Klinefeldt. Ruhl will appear for sentencing at the United States Courthouse in Davenport, Iowa, on a date to be determined. As part of the plea agreement, Ruhl and the government jointly recommended that Ruhl be sentenced to a term of imprisonment somewhere within the range of one day and twenty-four months.

From the end of 2008 through early 2012, Ruhl engaged in a scheme and artifice to defraud, by unlawfully withdrawing funds from several limited liability companies that he managed, including Lincoln Healthcare Building, LLC, Caxton on Bass St., LLC, Biaggi’s West Des Moines, LLC, and Crow Valley Park Venture, LLC. In total Ruhl unlawfully withdrew approximately $1.3 million from these entities’ accounts. Ruhl then spent the money on Ruhl & Ruhl Commercial expenses and personal expenses. Ruhl concealed his fraud by directing his chief financial officers to omit his withdrawals from financial statements provided to the investors or to enter false deposits on the statements to offset his withdrawals. These doctored statements showed large cash balances when in actuality the balances were depleted because of Ruhl’s withdrawals. Ruhl directed Ruhl & Ruhl Commercial property managers to distribute the doctored financial statements to the investors/members of the involved LLCs. Ruhl and his staff created notes payable to document the withdrawals. Some of these notes were not created and/or signed until well after Ruhl had withdrawn the funds documented in the notes. None of the notes payable had been disclosed to the other members of the LLC’s at the time they were created.

On January 15 and January 17, 2011, Ruhl directed an employee of Ruhl & Ruhl commercial to email financial statements to the investors/members of the Lincoln Healthcare LLC. Ruhl knew that the emails contained false financial statements for the Lincoln tax escrow account. The financial statements had been altered at Ruhl’s direction to conceal his withdrawals of $75,000 from the account over the time period reflected in the statements. The statements also misrepresented and inflated the ending balance in the tax escrow account to conceal Ruhl’s withdrawals. Ruhl directed the transmittal of the altered statements via interstate wire facilities in furtherance of his scheme to defraud and with the intent to defraud.

Ruhl engaged in multiple financial transactions involving the proceeds of his wire fraud scheme. As part of the wire fraud scheme, on or about August 3, 2010, Ruhl directed Ruhl & Ruhl Commercial employees to issue a check drawn on the Lincoln Healthcare tax escrow account at Wells Fargo bank, made out to Ruhl personally for $47,000. Ruhl deposited the check or caused the deposit of the check into his personal account at U.S. Bank. Ruhl deposited the check or caused the deposit of the check with the intent to defraud and in furtherance of his wire fraud scheme to defraud the members/investors of Lincoln Healthcare LLC.

Ruhl’s personal account balance was approximately $350 as of August 3, 2010, the date of the $47,000 deposit. Ruhl deposited the $47,000 check for the purpose of paying property taxes on a personal vacation home in Gogebic County, Michigan. On August 4, 2010, a check written by Ruhl to the Gogebic County treasurer was processed in the amount of $46,735.10. The check would not have cleared if it were not for Ruhl’s deposit of Lincoln funds into his account on August 3, 2010. Ruhl engaged in the payment of his Michigan property taxes via check knowing that the transaction involved the proceeds of a criminal offense, wire fraud. Since the financial transaction involved property of a value greater than $10,000 derived from wire fraud, the financial transaction violated Section 1957 of Title 18 of the United States Code.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and the case is being 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 that an Ankeny couple has been sentenced for their involvement in a mortgage fraud scheme.

On September 13, 2013, United States District Court Chief Judge James E. Gritzner sentenced Jamie Bowers-Danielson, 35, to 41 months of imprisonment for conspiracy to commit bank fraud and bank fraud charges. Bowers-Danielson was also ordered to serve five years of supervised release following her prison term. Chief Judge Gritzner also sentenced Matthew Danielson, 36, to one year and one day of imprisonment for bank fraud. Matthew Danielson will serve five years of supervised release following the completion of his prison term.

In an earlier proceeding, Matthew Danielson admitted he provided false information, including misrepresenting his marital status as single, to a mortgage lender. The purpose of providing the false information was to obtain a mortgage on a home in Ankeny, despite his lack of creditworthiness and to deceive the lender into failing to obtain his wife, Jamie Bowers- Danielson’s, signature on the mortgage. The mortgage was subsequently voided because Bowers-Danielson failed to sign the mortgage documents. Jamie Bowers-Danielson admitted that she submitted false documentation to the loan originator as part of the scheme.

Bowers-Danielson also admitted that she used her loan originator position to enable herself and others to qualify for mortgage loans through fraudulent means. This included submitting false and misleading statements and documents to mortgage lenders and banks for the purpose of obtaining loans for herself and others borrowers for which they should not have qualified.

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

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DAVENPORT, IA – On September 12, 2013, Kelly Taylor, age 51, of Davenport, Iowa, was sentenced to one year and one day of imprisonment for bank fraud, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Judge James E. Gritzner also sentenced Taylor to a five year term of supervised release, following the term of imprisonment.

Beginning in August 2012, and continuing until January 2013, Kelly Taylor executed a scheme to defraud Scott Schools Credit Union (“SSCU”). Taylor and her husband had been longstanding clients of SSCU and had a personal checking account at the credit union. On August 28, 2013, Taylor opened a business account at SSCU for the business owned and operated by Taylor and her husband.

After opening the business account at SSCU Taylor immediately wrote $430,000 worth of checks drawn on the account and deposited the checks into her personal account. Taylor knew that she did not have sufficient funds in the business account to cover the checks. Several days later, Taylor wrote $430,000 worth of checks drawn on her personal account and deposited the checks into her business account. Taylor knew that she did not have sufficient funds in her personal account to cover the checks.

Taylor continued to write checks between the business account and her personal account in close succession in order to take advantage of the time required for the bank to process the checks. By operating in this manner Taylor was able to make it appear as if there were sufficient funds in her two accounts to cover large checks and debits despite the fact that the true balances in both accounts were grossly insufficient. Taylor knew that she did not have sufficient funds in her accounts to cover the checks drawn on the accounts and she continued to kite insufficient funds checks between the accounts in order to deceive the credit union until her accounts were closed in January 2013.

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

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DAVENPORT, IA - On September 6, 2013, David Adair Woolison, age 34, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 70 months in prison, after pleading guilty to receiving child pornography, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered Woolison to serve five years of supervised release following imprisonment, register as a sex offender, and pay $100 towards the Crime Victims Fund. Woolison admitted to receiving child pornography from November 2008 to April 2011.

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

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DAVENPORT, IA – On August 30, 2013, Jeffrey Alan Sargent, age 45, of Lamont, Iowa, was sentenced to two years of probation for conspiracy to buy and sell illegally harvested ginseng, announced United States Attorney Nicholas A. Klinefeldt. The crime of buying and selling illegally harvested ginseng is a felony. United States District Judge John A. Jarvey also prohibited Sargent from any involvement in the ginseng trade during the term of his probation.

In 2010 and 2011 Sargent purchased ginseng from multiple sellers who Sargent knew had illegally obtained the ginseng. Sargent then sold the illegally harvested and purchased ginseng to a fur and trading company in Minnesota. Sargent obtained approximately $10,000 in illegally obtained ginseng in 2010 and 2011.

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

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DAVENPORT, IA – On August 30, 2013, David Ponce, age 44, of Galesburg, Illinois, was sentenced to 120 months of imprisonment for attempting to entice a minor to engage in sexual activity, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Ponce to 12 years of supervised release following the period of imprisonment.

Between October 12, 2011, and July 5, 2012, Ponce communicated online with an undercover officer working under the assumed identity of a thirteen-year old girl. Ponce discussed sexual activity in multiple chats with the undercover officer, and traveled from Galesburg, Illinois, to Clinton, Iowa, on July 5, 2012, for the purpose of engaging in sexual activity with the detective’s online persona. Ponce was arrested after his arrival at a predetermined meeting spot in Clinton, Iowa.

This case was investigated by the Clinton County Sheriff’s Office and the Iowa Crimes Against Children Task Force, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA - On August 27, 2013, Christopher A. Morresi, a 35 year-old resident of Underwood, Iowa, was sentenced by United States District Court Judge John A. Jarvey to ninety-six months in prison for possessing firearms after a felony conviction, announced U.S. Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Morresi to serve three years of supervised release following completion of the imprisonment. On June 7, 2013, Morresi pled guilty to being in possession of a firearm by a convicted felon. The charge was the result of an investigation conducted by officers of the Council Bluffs, Iowa, Police Department after they were called to a motor vehicle with a passed-out driver on December 6, 2012. Morresi was determined to be the driver of the vehicle, and he had in his possession a firearm that was reported stolen out of Nemaha County, Nebraska. Prior to December 6, 2012, Morresi had been convicted of felony offenses in New Jersey and in Iowa.

The investigation was conducted by the Council Bluffs, Iowa, Police Department, Nemaha County, Nebraska Sheriff’s Office, the Pottawattamie County Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On August 22, 2013, Steven William Bentley, age 53, from Oelwein, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 121 months in prison for attempted enticement of a minor, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also ordered Bentley to serve 10 years of supervised release following imprisonment and to pay $100 towards the Crime Victims Fund.

Bentley’s conviction resulted from a criminal trial held in Davenport, Iowa, in May of 2013. The evidence showed that between June 27, 2012 and July 25, 2012, Bentley, a self-employed businessman from Oelwein, chatted on-line with an agent from the Iowa Internet Crimes Against Children Task Force who was posing as a minor female. On or about July 19, 2012, Bentley arranged a meeting with the purported minor, traveled to Eldridge, Iowa, to meet her, however no meeting occurred. Bentley returned on July 25, 2013, to meet the purported minor, and he was arrested shortly after arriving at the meeting location.

This case was investigated by the Iowa Internet Crimes Against Children Task Force, the Scott County Sheriff’s Office, the DeWitt, Iowa, Police Department, the Clinton County Sheriff’s Office, the Davenport, Iowa, Police Department and the Eldridge, Iowa, Police Department. 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 August 28, 2013, David Nelson Chasse, age 43, of North Liberty, Iowa, was sentenced by Senior United States District Robert W. Pratt to four months of prison and six months of home confinement for possession with intent to use, make, print and use about $59,414 in forged and counterfeited postage meter stamps, announced United States Attorney Nicholas A. Klinefeldt. Judge Pratt also ordered Chasse to serve three years of supervised release following completion of the imprisonment, pay $59,989.87 in restitution, and to pay $100 towards the Crime Victims Fund.

Chasse obtained U. S. postage on-line for use in his business: The Birthday Company Incorporated. The United States Postal Inspection Service monitored the postage being used on The Birthday Company’s mailings and determined that some of it was counterfeit. On September 16, 2010, a federal search warrant was executed at Chasse’s residence where several thousand dollars of counterfeit metered postage stamps were seized. The investigation revealed that Chasse photocopied the sheets of postage and used the counterfeited postage for business mailings.

This case was investigated by the United States Postal Inspection Service, 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 August 27, 2013, Oscar Salinas-Olivas, a 34 year old resident of Albuquerque, New Mexico, was sentenced by United States District Court Judge John A. Jarvey to sixty months in prison for possession with intent to distribute marijuana, and twelve concurrent months for violation of his federal supervised release from New Mexico, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Salinas-Olivas to serve six years of supervised release following the term of imprisonment, when he will also be subject to deportation.

On May 8, 2013, the defendant pled guilty to being in possession with intent to distribute marijuana and admitted the violation of the terms of his supervised release. The charge was the result of a traffic stop by Iowa State Patrol on January 16, 2013. Salinas-Olivas was driving the vehicle when he was stopped for speeding. A subsequent search found approximately 320 pounds of marijuana. Salinas-Olivas was on supervised release from New Mexico for a 2010 conviction of being an illegal alien in possession of a firearm.

The investigation was conducted by the Iowa State Patrol, Immigration and Customs Enforcement, and the Iowa Department of Narcotics Enforcement, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA - On August 22, 2013, Donald Dean Jensen, age 58, of rural Story County, was sentenced to 16 months imprisonment for alien smuggling. In addition, the Court ordered Jensen to pay a $5,000 fine.

As part of his guilty plea, the Jensen admitted to paying another individual to unlawfully smuggle two Mexican women into the United States on separate occasions in 2010. On both occasions, Jensen was aware the women had not received prior official authorization to enter the United States. At sentencing, the women testified they were expected to cook, clean and have sexual relations with Jensen during their stay in Iowa. Both women also testified about the limited communication and feeling of isolation they encountered during their stay at Jensen’s rural residence.

The investigation was conducted by 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 – On August 19, 2013, Paul Kramer, age 43, of Granger, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 90 months in prison for wire fraud, bank fraud, and conspiracy, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also sentenced Kramer to five years of supervised release following incarceration.

From 2006 through 2009, Kramer knowingly used his mortgage company, Kramer Mortgage, and his real estate closing company, Iowa Closing and Escrow, to defraud multiple lenders out of over $1 million. Kramer executed the fraud, in part, in connection with a real estate development company, LDF. Kramer and the members of LDF, including Lane Anderson, orchestrated straw sales of thirteen properties to another LDF member, Shannon Flickinger. LDF was the true buyer but LDF could not qualify for financing for the purchase of the properties because the company already had too much debt. Flickinger was used as a straw buyer to obtain the financing to purchase the additional homes. At Kramer’s direction and with Kramer’s oversight Kramer Mortgage submitted loan applications in which Flickinger was named as the buyer despite the fact that Kramer knew that LDF was the true buyer. With Kramer’s knowledge, Flickinger’s income was grossly inflated in the applications in order to qualify him for the loans. After Flickinger’s fraudulent loan applications were approved, the straw sales were closed at Kramer’s mortgage company with Kramer’s knowledge. Kramer closed the sales despite the fact that Flickinger paid no down payments for any of the properties, contrary to the documentation that was provided to the lenders.

Kramer defrauded one particular bank by intentionally concealing the sales of properties that had been pledged to the bank as collateral for a $4 million line of credit for Kramer. After the sales of multiple properties in which the proceeds were owed to the bank, Kramer kept the proceeds and used them to pay his own personal or business expenses. Kramer also pledged several properties to more than one bank, without the banks’ knowledge, to obtain additional loans. Kramer’s activities resulted in the primary bank suffering significant losses and also left many homeowners unable to sell or refinance their homes because they did not have clear title to their properties. Some homeowners were threatened with foreclosure due to Kramer’s activities.

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

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Des Moines, Iowa – Bobbi Jo Wojewoda, age 46, of Grimes, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 18 months in prison for conspiracy to commit bank fraud, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also sentenced Wojewoda to serve 60 months of supervised release following the completion of her prison term.

In an earlier hearing, Wojewoda admitted she used her position as an apprentice appraiser to prepare appraisals with inflated values to help herself, and others qualify for mortgage loans. Wojewoda also failed to disclose material conflicts of interest to the mortgage lender when she performed appraisals on her own home and homes where she was the real estate agent.

In a related matter, Wojewoda’s husband, Wade Charles Wojewoda, age 45, pled guilty to receipt of proceeds obtained under false pretenses, related to the purchase of the Wojewoda’s home in 2003. Wade Wojewoda admitted he received loan proceeds knowing, or he was aware of a high probability, that the proceeds had been obtained under false pretenses. Specifically, he knew, or deliberately closed his eyes to the fact that a false document had been submitted to a bank to secure the loan proceeds. Wade Wojewoda was sentenced to three years probation on July 31, 2013.

This case was investigated by the Federal Bureau of Investigation, 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 August 13, 2013, James Edward Hall, age 75, of Eldridge, Iowa, was sentenced by United States District Judge John A. Jarvey to 15 years in prison for production of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also sentenced Hall to a life term of supervised release.

On November 12, 2012, Hall knowingly induced a minor male to conduct certain acts while Hall recorded the activity. On December 5, 2012, pursuant to a search warrant, a search was conducted at Hall’s residence. An onsite preview of Hall’s computer was conducted, and the video of the minor was found on the computer. Hall was interviewed and admitted that he had recorded the 15 year old juvenile male in Hall’s residence.

This case was investigated by the Scott County Sheriff’s Office, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On August 1, 2013, Jeffrey Goins, age 26, was sentenced by United States District Judge John A. Jarvey to 100 months in prison for conspiracy to distribute 280 grams or more of cocaine base, announced United States Attorney Nicholas A. Klinefeldt. Goins was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.

Beginning approximately June 2010 and continuing until about March 2, 2012, Goins conspired with others to distribute cocaine base (“crack cocaine”) in the Iowa City, Iowa, area and other locations. In approximately August 2011, Goins and co-defendant Bryant Smith began distributing drugs together and utilized passenger bus lines to transport drugs from Chicago, Illinois, to Iowa City for resale. On January 4, 2012, police in Davenport, Iowa, intercepted about 90 grams of crack cocaine, 128 grams of powder cocaine, and marijuana secreted in luggage on a bus bound from Chicago to Iowa City. Investigation revealed that the luggage belonged to Javon Daniels, a passenger on the bus, who was transporting the drugs on behalf of Goins and Smith. On February 8, 2013, co-defendant Bryan Smith was sentenced to 140 months in prison to be followed by five years of supervised release. On September 14, 2012, Javon Daniels was sentenced to 40 months in prison to be followed by four years of supervised release for possession with intent to distribute 28 grams or more of crack cocaine.

This case was investigated by the Davenport, Iowa, Police Department, the United States Drug Enforcement Administration, and the Iowa City, 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 July 30, 2013, 55 year-old Robert W. Duncan, formally a resident of Thurmond, Iowa, was sentenced by United States District Court Judge John Jarvey to four years in prison, followed by five years of supervised release, announced U.S. Attorney Nicholas A. Klinefeldt. Duncan entered a guilty plea on March 12, 2013, to defrauding the Social Security Administration, filing a false income tax return and making a false statement to a financial institution. Duncan, former owner and auctioneer for Bob Duncan and Associates, was also ordered to pay restitution to the Social Security Administration in the amount of $218,755.10, and to the Internal Revenue Service in the amount of $42,254.00.

During the plea proceeding, Duncan admitted that he had defrauded the Social Security Administration by receiving benefits he was not entitled to between 1993 and 2011. Duncan also admitted to the court that he had caused to be filed a false 1040 tax form for tax year 2008 by under reporting his income, and that he had provided false financial documents to Treynor State Bank to obtain a $225,000 loan in 2005.

The investigation was conducted by the Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Mills County Sheriff’s Office, Internal Revenue Service- Criminal Investigations, Social Security Administration-Office of the Inspector General, Drug Enforcement Administration 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 July 30, 2013, Joseph Patrick Connor, a 40 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge John Jarvey to four months in prison, followed by three years of supervised release, for his role in transporting stolen truck repair equipment from Omaha, Nebraska, to Council Bluffs, Iowa. Judge Jarvey also ordered Connor to pay restitution in the amount of $30,000.

On March 18, 2013, Connor pled guilty to the charge of interstate transportation of stolen property. The charge was the result of an investigation conducted by several law enforcement agencies into the theft of tools from Hatcher Mobile Services of Omaha, Nebraska, taken during a burglary committed on March 20, 2012. Many of the tools taken during the burglary were recovered from the back of a straight truck found in Council Bluffs, Iowa, by the Iowa State Patrol. The value of the tools taken during the burglary was estimated to be over $100,000.

The investigation was conducted by the Omaha Police Department, Iowa State Patrol, the Pottawattamie County Attorney’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.

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DAVENPORT, IA- On July 25, 2013, Andrew Aaron Rahn, age 20, formerly from Long Grove, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 120 months of imprisonment on the charge of distribution of heroin resulting in death, announced United States Attorney Nicholas A. Klinefeldt. Rahn was also ordered to serve three years of supervised release and pay $100 towards the Crime Victims Fund. Co-defendants David Weber and Joseph Cooper have pled guilty and will be sentenced on September 12, 2013.

Rahn admitted during the guilty plea proceeding that on June 5, 2012, he contacted David Weber to arrange for the purchase of heroin from Joseph Cooper in Rock Island, and that on June 6, 2012, Rahn, Weber and Tralee Duffey traveled to Rock Island, Illinois where Rahn purchased and received $120 worth of heroin from Joseph Cooper. Rahn further admitted that after dropping Weber off, Rahn purchased some syringes and he and Duffey shot up heroin in the parking lot of Duck Creek Mall in Bettendorf, and that Rahn and Duffey then returned to Rahn’s Long Grove residence where Rahn passed out. Rahn also admitted that upon waking up he found Duffey unresponsive and Rahn called his mother, who told him to call 911.

The Long Grove, Iowa, Fire Department, Rescue Unit, the Medic- Emergency Medical Technicians and the Scott County Sheriff’s Department responded to the scene. They found Duffey unresponsive and attempted to resuscitate her. Paramedics continued efforts to resuscitate Duffey and transported her to the hospital where she died. Tralee Duffey was 18 years old, and the cause of death was determined to be heroin overdose. During a subsequent search of Rahn’s residence, Scott County Sheriff’s Office investigators found and collected syringes, Xanax pills, burnt spoons with unknown residue, marijuana drug paraphernalia, and a syringe fully loaded with unknown liquid. Some of these items were sent to the Iowa Division of Criminalistics Laboratory which later identified a trace residue of heroin on a burnt spoon, Alprazolam, schedule IV pills and marijuana. Rahn admitted that Duffey died as a result of the heroin that Weber arranged for Rahn to purchase from Cooper.

This case was investigated by the Scott County Sheriff’s Office, the Bettendorf, Iowa, Police Department, and the Rock Island, Illinois, 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 25, 2013, Mark Timothy Hudson, age 19, of Davenport, Iowa, was sentenced to 18 months imprisonment by Chief United States District Judge James E. Gritzner for being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also sentenced Alvarado to three years of supervised release.

On September 3, 2012, police responded to Hudson’s residence due to a domestic disturbance. Hudson fled from the residence and discarded a .357 magnum revolver in bushes nearby. Police recovered the firearm and arrested Hudson, who had previously been convicted of a felony offense.

This case was investigated by the Davenport, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 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 25, 2013, Keevin J. Hanes, age 26, was sentenced by United States District Judge James E. Gritzner to 161 months imprisonment for conspiracy to distribute, and possession with intent to distribute, 280 grams or more of cocaine base, announced United States Attorney Nicholas A. Klinefeldt. Hanes 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 September 2011 and continuing until about December 26, 2012, Hanes conspired with others to distribute cocaine base in the Davenport, Iowa, area. Hanes purchased cocaine from various persons which was then converted to cocaine base and redistributed in the Davenport area. As part of the investigation, law enforcement officers conducted searches of Hanes’ Davenport residence on two occasions and seized cocaine base, cocaine, a digital scale, packaging material, drug paraphernalia, and a significant amount of U.S. currency.

This case was investigated by the Davenport, Iowa, Police Department; the United States Drug Enforcement Administration; the Muscatine County Drug Task Force; and the Iowa Department of Public Safety-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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DAVENPORT, IA – On July 25, 2013, Carlos Alvarado, age 45, from Chicago, Illinois, was sentenced by Chief United States District Judge James E. Gritzner to 18 years imprisonment for possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also sentenced Alvarado to eight years of supervised release.

On May 19, 2012, Alvarado met with a buyer in Burlington, Iowa, for the purpose of distributing methamphetamine. Alvarado agreed to sell the individual one-half pound of methamphetamine for $10,500. When Alvarado’s vehicle was searched, agents seized two packages containing a total of approximately 340 grams, or 12 ounces, of methamphetamine.

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

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DES MOINES, IA – On July 19, 2013, Johnelle Lewis Bell, age 29, of Hammonton, New Jersey, was sentenced in United States District Court in Des Moines on charges of sex trafficking and associated charges, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Bell to a net term of imprisonment of 360 months, to be followed by 5 years of supervised release. Bell was also ordered to pay a $1,200.00 special assessment for the Crime Victim Fund. Bell remained in the custody of the United States Marshal’s Service pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.

There is no parole in the federal system. Bell will serve an estimated 85% of his sentence of imprisonment, then be placed on supervised release. If Bell violates the conditions of his supervised release, a judge could sentence him to further imprisonment.

“Defendant Johnelle Bell essentially enslaved these women, and forced them to commit sex acts for his financial gain. Bell’s sentence, which he must serve 85% of, reflects the seriousness of his crime,” said United States Attorney Nicholas Klinefeldt.

In all, Bell was sentenced on 12 charges. The charges and respective sentences are as follows:

• Count 1, conspiracy to commit sex trafficking: 360 months imprisonment;

• Counts 2 and 3, sex trafficking: 180 months imprisonment on each count;

• Counts 4-7, coercion or enticement to travel in interstate commerce for prostitution: 240 months imprisonment on each count;

• Count 8, conspiracy to transport in interstate commerce for prostitution: 60 months imprisonment;

• Counts 9-12, transportation in interstate commerce for prostitution: 120 months imprisonment on each count.

All of the sentences were imposed to run concurrently.

Bell was originally indicted in a twelve-count indictment on April 26, 2012, and a twelve-count superseding indictment was returned by the Federal Grand Jury on November 6, 2012. On November 20, 2012, following an almost week-long trial, a federal jury in Council Bluffs found Bell guilty of all twelve counts with which he was charged.

The charges arose from a prostitution sting operation on June 18, 2011, by the Child Exploitation Task Force (formerly the Great Plains Innocence Lost Task Force) operating in the Omaha-Council Bluffs area. The Task Force is led by the Omaha Office of the Federal Bureau of Investigation, and at the time of this sting operation, included officers from the Council Bluffs Police Department, the Southwest Iowa Narcotics Enforcement Task Force, and the Omaha Police Department. Agents from FBI offices other than Omaha were also participating in this operation. The Task Force emphasizes crimes against minors, but also investigates adult sex trafficking cases discovered in the course of its pro-active investigations. While this case dealt primarily with young adult females roughly 19-23 years of age, at least two of the young adults involved in this case reported becoming engaged in prostitution as minors, by at least about ages 16 or 17.

“This sentencing removes an evil predator from the streets and prevents him from exploiting others”, said FBI Special Agent in Charge Thomas R. Metz. “The FBI led Child Exploitation Task Force will continue to aggressively pursue and bring to justice individuals such as Bell who prey on others in such a cruel manner.”

On June 18, 2011, answering ads for prostitution on Backpage.com, for Omaha, Nebraska and Council Bluffs, Iowa, an undercover FBI agent posing as a customer arranged a “date” for prostitution. At the ensuing raid, agents and officers encountered Johnelle Lewis Bell and three adult females engaged in prostitution. The resulting federal investigation uncovered a sex trafficking venture involving Bell and as yet to be formally identified “pimp partners,” centering around Little Rock, Arkansas. Evidence produced at trial showed the traveling prostitution venture operating in at least Arkansas, Iowa, Nebraska, Kansas, Colorado, Pennsylvania, Maryland, South Carolina, Louisiana, Georgia, Alabama, Texas, and Tennessee. Two of the sex trafficking counts related to incidents in May and June of 2011 in Des Moines, Iowa. Prostitution adds by Bell were also posted in the Quad Cities area of Iowa and Illinois, and in the Omaha-Council Bluffs area of Nebraska and Iowa.

Young adult women formerly working as prostitutes for Bell testified at trial regarding their histories of very troubled childhoods, mental and emotional problems, homelessness and lack of material support, and substance abuse. These victims testified that Bell lured them to work for Bell on promises of love and long-lasting personal relationships, and help with problems in their lives. However, once they engaged in prostitution for Bell, the promises evaporated, and all of the money from the sex acts they performed at Bell’s direction, went to Bell.

One of the victims testified she was repeatedly physically assaulted by Bell, including being whipped with a belt and severely beaten on at least two other occasions, in part for “disrespecting” her pimp, Bell; for threatening to go to the police; for falling asleep while she was supposed to be engaged in prostitution for Bell; to force her to commit sex acts she did not want to commit; and to keep her from leaving Bell as a prostitute working under his control. According to this witness, Bell not only physically beat her, but also threatened the victim, her family, and her very young child with serious harm or death if she did not do as Bell told her. According to testimony at trial, her ordeal ended on June 18, 2011, when she was, with others, rescued by members of the Task Force operating in the Omaha-Council Bluffs area.

Another victim testified about having been at a “party-weekend” with Bell and others, and then being held by Bell against her will for approximately a week, moved from state to state by Bell, and forced by Bell to engage in prostitution. The victim testified that she was forced to stay with Bell and engage in prostitution under his control, by Bell’s threats of seriously harming or killing the victim, her family, and particularly the victim’s 2-3 year old daughter, and because she knew that another young woman under Bell’s control had been very badly treated by Bell. According to testimony at trial, her ordeal also ended on June 18, 2011, about a week after Bell forced her to be under his control.

Brittany Lawson, age 23, of Hot Springs, Arkansas, a co-defendant of Bell’s, pled guilty on October 12, 2012, to Count 1 of the original Indictment, conspiracy to commit sex trafficking. Ms. Lawson was sentenced on February 25, 2013, in Council Bluffs, by Chief United States District Court Judge James E. Gritzner, to 50 months imprisonment, to be followed by 5 years of supervised release, and a $100.00 special assessment for the Crime Victims Fund. Lawson is currently serving her term of imprisonment. Lawson was, throughout much of the conspiracy, the prostitute who assisted Bell in managing the other prostitutes. None of the acts of force, fraud or coercion alleged against Bell were alleged to have been committed by Lawson. However, she knew what was happening to the other prostitutes and still managed them for Bell.

This case was investigated by the Federal Bureau of Investigation, the Council Bluffs Police Department, the SouthWest Iowa Narcotics Enforcement Task Force, and the Omaha Police Department, and had assistance from other law enforcement in a number of states. The investigation of this case took place in Iowa, Nebraska, Arkansas, Louisiana, Pennsylvania and other locations. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

The task force which worked this case and is working others in Iowa and Nebraska, primarily in the Omaha-Council Bluffs Metro Area, is being expanded to include other law enforcement agencies. Further, the task force could not do its work without the substantial assistance of victims by victim treatment and advocacy agencies in the area and elsewhere. The task force has significant ties with emergency care, shelter, and other government and non-government agencies throughout the area and beyond, providing needed security, and emergency and long-term care to victims of human trafficking. Both the FBI and United States Attorney’s Office Victim Specialists are active in working with these other agencies to ensure and enhance the treatment and other assistance needed when victims of sex trafficking are encounter

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DAVENPORT, IA – On July 18, 2013, Derrick Dean Taylor, age 28, formerly of Burlington, Iowa, was sentenced by United States District Judge John A. Jarvey to six months imprisonment for conspiracy to distribute marijuana, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Taylor to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.

Beginning in approximately August 2008 and continuing until about August 2011, Taylor conspired with other persons to distribute marijuana in the Burlington, Iowa area. As part of the investigation, on August 5, 2011, law enforcement officers conducted a search of Taylor’s Burlington residence and seized 23 pounds of marijuana, a digital scale, packaging material, drug paraphernalia, and a significant amount of U.S. currency.

This case was investigated by the Southeast Iowa Narcotics Task Force; the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Iowa Department of Public Safety - 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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DAVENPORT, IA – On Monday, July 15, 2013, Aaron Dean Norton, age 33, was sentenced by United States District Court Judge John A. Jarvey to 360 months imprisonment for producing child pornography announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Norton to serve 20 years of supervised release following the imprisonment.

On March 1, 2013, Norton pleaded guilty to the production of child pornography charge. As part of the guilty plea proceedings, Norton admitted that between April 14 and April 20, 2010, he photographed himself sexually abusing a four year old child he was babysitting.

“The prosecution of child sexual predators is a top priority of the United States Department of Justice and this office will aggressively pursue all child pornography cases, with a special emphasis on those who produce pornography with innocent children”, said U.S. Attorney Klinefeldt. “I commend the Iowa Internet Crimes Against Children (ICAC) Task Force and the Iowa Division of Criminal Investigation for their outstanding work on this difficult case.”

This case was investigated by the Iowa Internet Crimes Against Children (ICAC) Task Force and the Iowa Division of Criminal Investigation, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA - On July 18, 2013, David Vincent Gierlus, age 60, formerly an osteopathic doctor in Muscatine, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 96 months imprisonment and a fine of $400,000.00 after pleading guilty to distributing hydrocodone to a patient without a legitimate medical purpose and outside the scope of professional practice, announced United States Attorney Nicholas A. Klinefeldt. Gierlus was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.

In August of 2012, Gierlus was charged in a criminal complaint with three counts of illegal distribution of drugs to patients. According to the criminal complaint, Gierlus provided prescriptions for controlled substances in exchange for sex. The criminal complaint also alleged that one patient advised that the sexual contact ranged from oral sex, both during medical appointments and outside the office in Gierlus's vehicle, to intercourse in the examination room during medical appointments. That patient estimated she and Gierlus had sexual contact more than 50 times.

An indictment was filed against Gierlus in January of 2013, and on March 1, 2013, Gierlus plead guilty to one of the counts of the indictment. Pursuant to a written sentencing agreement, Gierlus agreed to the 96-month sentence.

Gierlus is no longer licensed to practice medicine and is prohibited from providing any form of health services during the five years he is on supervised release.

This case was investigated by the Federal Bureau of Investigation, the Muscatine, Iowa, Police Department, the Muscatine County Sheriff’s Office and the Muscatine County Drug Task Force. 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, 2013, Alan Bernard Baugh, age 32, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 75 months imprisonment, after pleading guilty to conspiracy to distribute at least 500 grams of cocaine and 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Baugh was also ordered to serve four years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund. The district court also ordered Baugh to forfeit to the government $12,826 seized during a search warrant.

Baugh agreed in the plea proceeding that from June 2006 to February 2, 2012, he entered into an agreement with two or more individuals to distribute cocaine and marijuana. As part of the investigation, on February 5, 2012, law enforcement officers conducted a search of Baugh’s Davenport residence and seized 7.1 kilograms of marijuana, 269 grams of cocaine, and $12,826.00 in cash.

This case was investigated by the Drug Enforcement Administration, the Iowa Department of Public Safety-Division of Narcotics Enforcement, 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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COUNCIL BLUFFS, IA- On July 11, 2013, Douglas John Howard, a 50 year-old resident of Pottawattamie County, Iowa, was sentenced by Chief Judge James E. Gritzner to 121 months imprisonment for possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also ordered Howard to serve a four year term of supervised release following incarceration. Howard pled guilty on February 8, 2013, to possession of methamphetamine with intent to distribute.

The conviction resulted from a joint law enforcement investigation into the distribution of methamphetamine in the Council Bluffs, Iowa, which began with a traffic stop in June of 2012 where Howard was found to be in possession of methamphetamine, digital scales, plastic baggies and drug distribution notes. The investigation identified Howard as a person responsible for regularly distributing methamphetamine in Council Bluffs, along with rural areas in Pottawattamie and Mills Counties in Iowa.

The investigation was conducted by the Carter Lake Police Department, South West Iowa Narcotics Task Force, and the Drug Enforcement Administration, 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 July 11, 2013, David Shane Anderson, age 41, of Hamburg, Iowa, was sentenced in United States District Court in Council Bluffs, Iowa, on a charge of felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Anderson to 46 months in prison, to be followed by 2 years of supervised release. Anderson was also ordered to pay a $100 special assessment for the Crime Victim Fund, and to forfeit the .410 shotgun and ammunition seized from him by law enforcement officers. Anderson remained in the custody of the United States Marshal’s Service pending return to Ringgold County, Iowa, where Anderson is facing a State of Iowa methamphetamine charge.

Anderson was sentenced upon his plea of guilty entered on April 4, 2013, to felon in possession of a firearm, having possessed a .410 shotgun on March 20, 2012, near Hamburg, Iowa. A Fremont County Sheriff Deputy, answering a call for “shots fired”, seized the shotgun from Anderson as he was found carrying it out of a field. Anderson was in the company of some minor children. Prior to possessing the shotgun, Anderson had, among other convictions, been convicted of separate felony charges of burglary in Iowa and in Missouri.

This case was investigated by the Fremont County Sheriff’s Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, 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 July 11, 2013, Jordan James Collier, age 24, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on a charge of illegal possession of a machine gun, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Collier to 51 months in prison, to be followed by 1 year of supervised release. Collier was also ordered to pay a $100 special assessment for the Crime Victim Fund, and to forfeit the machine gun and two other firearms he had possessed. In addition, Chief Judge Gritzner ordered Collier to pay $1,200 in restitution to the person from whom Collier had stolen the firearms. Collier remained in the custody of the United States Marshal’s Service pending either designation of the Federal Bureau of Prisons facility at which he will serve his federal sentence, or surrender to Pottawattamie County or Kossuth County authorities regarding State of Iowa charges pending against Collier in those counties.

Collier was sentenced upon his plea of guilty entered on February 8, 2013, to illegal possession of a machine gun. Collier was arrested subsequent to an investigation by the Council Bluffs Police Department regarding two rifles which Collier pawned at a local pawn shop. The firearms were determined to have been stolen from a residence in Kossuth County, Iowa. Collier had also attempted to pawn the machine gun. The machine gun was a functional Swiss K Vietnam War era automatic rifle. The sentence imposed upon Collier also took into account that the three firearms were stolen.

This case was investigated by the Council Bluffs, Iowa, Police Department, with assistance from the Kossuth County Sheriff’s Department, and the Federal 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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