Southern District of Iowa

DAVENPORT, IA – On February 8, 2013, Aaron Deshawn Watson, age 33, was sentenced to 240 months imprisonment for conspiracy to distribute 1,000 kilograms or more of marijuana and five kilograms or more of cocaine, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Watson to ten years supervised release.

Beginning in approximately 2005 and continuing until 2010 Watson conspired with others to distribute large amounts of marijuana and cocaine. Watson often received and distributed hundreds of pounds of marijuana in connection with a co-defendant Gerardo Salinas, Jr. Salinas is set to be sentenced on April 5, 2013.

This case was investigated by the United States Drug Enforcement Administration and 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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DES MOINES, IA – Charles R. Barbour, of West Des Moines, Iowa, pleaded guilty to one count of income tax evasion in a proceeding before United States Magistrate Judge Celeste F. Bremer, announced United States Attorney Nicholas A. Klinefeldt. Sentencing has been scheduled for May 9, 2013, at the United States Courthouse in Des Moines before United States District Court Judge John A. Jarvey.

As part of his written plea agreement filed February 6, 2013, Barbour agreed to plead guilty to a U.S. Attorney’s Information charging him with one count of income tax evasion. In the plea agreement, Barbour agreed that he did not report all income he earned making dentures for a private dental practice. Barbour agreed that he willfully understated his income for tax year 2006 in the amount of $80,927.00; for tax year 2007 in the amount of $50,940.00; for tax year 2008 in the amount of $52,895.00 and for tax year 2009 in the amount of $11,300.00. Babour also admitted to claiming false business expenses on his returns during tax years 2007, 2008 and 2009.

Barbour faces a maximum penalty of up to 5 years in prison, a maximum fine of $250,000, or both a fine and imprisonment. Additionally, under the plea agreement, Barbour agrees to cooperate with the Internal Revenue Service to pay all back taxes, penalties and interest due. Barbour was released on bond, under the supervision of the United States Probation Office, pending imposition of sentence.

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

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DES MOINES, IA – Des Moines area real estate developer Randal L. Walters was sentenced to twelve months and one day in prison for his participation in a bank fraud scheme. Chief Judge James E. Gritzner also ordered Walters to serve a term of 5 years of supervised release following release from prison, $500,000 restitution and directed Walters to pay a $100 special assessment to the crime victims fund.

Walters pleaded guilty to committing bank fraud on September 20, 2012, in connection with a condominium development project on the south side of Des Moines known as the Meadow Cove project. Walters had been charged with diverting funds borrowed for that project to pay for a variety of other items and projects. A consortium of at least ten Iowa and Missouri banks participated in loans to the project. Walters’s co-defendant in the matter is scheduled to be sentenced by Chief Judge Gritzner in April.

The 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, IA - On February 1, 2013, Susan Lea Combs, a 51 year old resident of Pottawattamie County, Iowa, was sentenced to 120 months (ten years) imprisonment for conspiracy to distribute methamphetamine by United States Senior District Court Judge Ronald Longstaff. Judge Longstaff also imposed a period of five years of supervised release following her incarceration. Combs’ co-defendant, David Dwayne Mendez, a 52 year old resident of Polk County, Iowa, was sentenced by Judge Longstaff to a term of imprisonment of 108 months (nine years) for his role in the Conspiracy to Distribute Methamphetamine, as well as a four year period of supervised release. Combs and Mendez entered guilty pleas to conspiracy to distribute methamphetamine on September 6, 2012. At the time of their respective pleas of guilty, each admitted that they agreed to sell methamphetamine that was obtained from a source in South Omaha, Nebraska, to individuals in Iowa, particularly in the Council Bluffs and Des Moines areas.

The investigation was conducted by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Mid-Iowa Narcotics Task Force, and the Polk County Attorney’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 February 1, 2013, Michael James Vore, a 50 year old resident of Pottawattamie County, Iowa, was sentenced to 120 months (ten years) imprisonment for possession with intent to distribute methamphetamine by United States Senior District Court Judge Robert Pratt. Judge Pratt also imposed a period of eight years of supervised release following his incarceration.

In September of 2012,Vore was found guilty by a jury of possession with intent to distribute methamphetamine. The evidence at trial showed that the Iowa State Patrol was conducting an investigation into the possession and transportation of stolen commercial utility trailers in May of 2011. As part of their investigation, members with the Iowa State Patrol conducted a traffic stop on Vore as he was pulling a suspected stolen trailer behind his pick-up truck. While searching the pick-up truck that Vore was driving, troopers located approximately fifty grams of pure methamphetamine, along with a large stack of United States Currency, a digital scale and notes consistent with the sale of a controlled substance.

The investigation was conducted by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Pottawattamie County Sheriff’s Office, and the Pottawattamie County Attorney’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 January 31, 2013, Robert Leslie Ranck, age 46, was sentenced to 130 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Ranck to three years supervised release following imprisonment, ordered him to pay a $200 special assessment to the crime victim fund, and ordered him to forfeit all firearms and ammunition involved in the offense.

On April 7, 2012, Ranck was stopped by the Burlington, Iowa, police for a traffic violation. Police discovered that Ranck, a multi-time convicted felon, was in possession of a high-capacity, semi-automatic 9mm pistol. Ranck had just received the pistol from Justin Adams, who purchased the pistol for Ranck at a Burlington gun shop. Ranck, after being arrested and booked by police, was released on bond.

On April 18, 2012, Ranck again was arrested in Scott County, Iowa, while making a delivery of six pounds of marijuana to a police informant. Police searched Ranck’s residence in Muscatine, Iowa, finding additional marijuana packaged for sale, growing marijuana plants, several firearms, and ammunition.

Ranck was indicted in United States District Court for possessing firearms and ammunition as a felon and possessing marijuana with intent to distribute, and Adams was separately indicted for making false statements in connection with the purchase of a firearm. Ranck and Adams both entered guilty pleas, and Adams’ sentencing is still pending.

This case was investigated by the Burlington, Iowa, Police Department, the Davenport, Iowa, Police Department, the Muscatine Drug Task Force, 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 February 1, 2013, Tracy Lee White, age 47, of Gary, Indiana, was sentenced to 240 months imprisonment for conspiracy to manufacture, distribute, and possess with intent to distribute at least 1000 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose imposed the sentence after White and the United States Attorney reached an agreement that the 240-month sentence furnishes adequate protection to the public, is in keeping with the gravity of the offense, and promotes respect for the law, just punishment, and deterrence to criminal conduct. United States District Judge Stephanie M. Rose also fined White $20,000, ordered him to serve five years supervised release following his incarceration, and ordered him to pay a $100 special assessment to the crime victim fund.

At the time of his guilty plea, White admitted his involvement in a conspiracy that obtained more than 1,000 kilograms of marijuana in Colorado and transported it to Iowa and elsewhere with several other individuals. White traveled to Colorado on numerous occasions to meet with the suppliers and others for the purpose of purchasing of multiple pounds of marijuana.

This investigation was conducted by the Clinton, Iowa, Police Department, Quad City Metropolitan Enforcement Group, the Iowa Division of Narcotics Enforcement, and the United States 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 February 1, 2013, Steven Michael Gruetzmacher, age 46, of Davenport, Iowa, was sentenced to 180 months imprisonment for conspiring to manufacture and distribute methamphetamine and for possessing firearms in furtherance of a drug trafficking crime, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Gruetzmacher to 5 years supervised release.

Gruetzmacher agreed with others to manufacture and distribute methamphetamine from July 2011 through early March 2012. Gruetzmacher manufactured and distributed methamphetamine on multiple occasions over the course of the conspiracy.

The case was investigated by the Drug Enforcement Agency 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 February 1, 2013, Jonathan Lamont Morning, age 34, of Davenport, was sentenced to 120 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Morning to five years supervised release following imprisonment, ordered him to pay a $100 special assessment to the crime victim fund, and ordered him to forfeit $10,182 in cash seized during the investigation.

On January 27, 2012, Morning was arrested by Davenport, Iowa, police while making a delivery of 10 pounds of marijuana. Police subsequently recovered another 100 pounds of marijuana from Morning’s residence. The investigation revealed that Morning was involved in an interstate marijuana trafficking conspiracy with another Davenport resident, Earl Buckner. Buckner was sentenced on April 13, 2012, to 60 months imprisonment.

This case was investigated by the Davenport, Iowa, Police Department, the Iowa Division of Narcotics Enforcement, and the United States 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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DAVENPORT, IA – On February 1, 2013, Regina Jimenez, age 60, of Clinton, Iowa, pled guilty to two counts of filing false tax returns, announced United States Attorney Nicholas A. Klinefeldt. Jimenez faces up to 3 years imprisonment, a fine of up to $1,000,000 and costs of prosecution on each count.

Jimenez operated AA Accounting & Tax Services, Inc. in Clinton, Iowa from approximately 2007 through 2011. Jimenez used the business to facilitate the theft of over $200,000 from a client who believed that Jimenez would use the money to pay the client’s taxes. Jimenez instead used the money for personal expenditures and did not report the stolen funds on her tax returns.

The case was investigated by Internal Revenue Service - Criminal Investigation, and is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA – On January 22, 2013, Jonathan Dale Campbell, age 32, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on the charge of conspiracy to commit interstate transportation of stolen property regarding the theft of copper from center-pivot irrigation systems, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Campbell to 37 months in prison, and also ordered Campbell to serve 3 years of supervised release following his imprisonment. The Court ordered that the 37 months federal sentence of imprisonment be served consecutively to, that is, in addition to, State of Iowa sentences currently being served by Campbell. (Campbell is currently serving terms of imprisonment in Iowa for theft and burglary charges unrelated to the federal interstate transportation of stolen property case.) The Court also ordered Campbell to pay restitution in the amount of $174,047.97 to identified victims of the theft scheme in which Campbell was involved, and to pay a $100.00 special assessment for the Crime Victim Fund. Campbell remains in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility where he will serve his federal sentence, or return to the custody of the State of Iowa to complete serving sentences from Mills and Pottawattamie, Iowa, counties, which he was serving when taken into federal custody on the interstate theft charges.

Campbell was sentenced upon his plea of guilty to conspiracy to commit interstate transportation of stolen property. The charges arose from a prolonged series of thefts of copper from control cables for center-pivot irrigation systems. The cable was stolen from farming operations stretching from near Sioux City, Iowa, to near St. Joseph, Missouri, with a concentration of the thefts in Harrison and Monona counties in Iowa. Campbell was a part of a conspiracy involving three or more people, which operated from late in 2009, until the summer of 2010. The sentences imposed in this case were in part based on co-conspirators receiving an estimated $70,000.00, to $120,000.00.00, from a salvage yard in Omaha, Nebraska, for the copper cable. Records established that persons involved in this conspiracy delivered copper from the center-pivot irrigation system control cables to the salvage yard in Omaha, Nebraska, on at least 73 occasions. The sentences were also based in part on the number of victims identified in the case, with approximately 28 farming entities and a number of insurance companies being identified as victims in Harrison and Monona counties.

Previously convicted in this conspiracy were Charles Douglas Nichols, age 35, and Joseph Daniel Falknor, age 30, both of Council Bluffs, Iowa. Nichols was sentenced to 31 months in prison, to be followed by 3 years of supervised release. Falknor was sentenced to 12 months and 1 day of imprisonment, to be followed by 3 years of supervised release. Nichols and Falknor were also ordered to pay restitution and to pay an assessment for the Crime Victim Fund.

This investigation was conducted by the Harrison County, Iowa, Sheriff’s Department, the Monona County, Iowa, Sheriff’s Department, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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COUNCIL BLUFFS, IA – On January 22, 2013, Charles Edward Duncan, age 25, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on the charge of prohibited person in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Duncan to 34 months in prison and also ordered Duncan to serve 2 years of supervised release following his imprisonment. The Court also ordered Duncan to pay a $100.00 special assessment for the Crime Victim Fund, and to forfeit the firearm and ammunition found in his possession. Duncan, a victim of a recent shooting, was allowed to remain under the supervision of the United States Probation Office to receive further medical care for his wound, pending the Federal Bureau of Prisons designating the facility at which he is to serve his term of imprisonment.

The indictment alleged that Duncan was an unlawful user of controlled substances (marijuana) and that Duncan had, prior to possessing the firearm, been convicted of a misdemeanor crime of domestic violence. Either circumstance barred Duncan from possessing a firearm. The charge arose out of the execution of a State of Iowa search warrant by the SouthWest Iowa Narcotics Task Force on April 11, 2012, at Duncan’s residence in Council Bluffs, Iowa. During the search, officers found various indicia of use of marijuana by Duncan, and an AK-47 style rifle and ammunition. Duncan had on November 15, 2011 been convicted in the District Court of the State of Iowa for Pottawattamie County, Iowa, of a misdemeanor domestic assault resulting in physical injury, and was at the time of the search subject to a domestic abuse protection order.

This case was investigated by the SouthWest Iowa Narcotics Task Force and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA B Chamness Technology, Inc. (CTI) was sentenced today to pay a $100,000 fine for the discharge of a pollutant announced United States Attorney Nicholas A. Klinefeldt. United States Magistrate Judge Ross A. Walters also sentenced CTI to serve a term of two years supervised probation, which includes conditions that CTI perform community service and develop a compliance and ethic program. The Court also imposed a $125 crime victim fund assessment.

On November 1, 2010, the Iowa Division of Natural Resources responded to a complaint of a discharge in the Palestine Creek in Wapello County. An investigation revealed that leachate water and storm water runoff had been discharged from an umbilical hose at CTI’s compost facility located outside Eddyville, Iowa. A CTI employee caused the discharge by failing to attach the umbilical hose and ensure the umbilical hose was connected to a spray irrigator at the facility. The leachate water and storm water runoff entered the Palestine Creek and flowed to the Des Moines River. The discharge was not permitted and the employee acted within the scope of employment and intended at least in part to benefit CTI through the employee’s actions.

The case was investigated by the Environmental Protection Agency and the Iowa Division of Natural Resources, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA – United States District Court Judge John Jarvey sentenced John Francis Holtsinger, age 52, of Ottumwa, Iowa, to 87 months imprisonment on wire fraud and tax evasion charges, announced U.S. Attorney Klinefeldt. Judge Jarvey also ordered the federal sentence to be served consecutive to a five-year sentence Holtsinger recently received on unrelated state charges. Holtsinger also was ordered to pay $948,239.67 in restitution to the victims of his offense, and will have to serve 60 months of supervised release following the completion of his prison term.

In an earlier hearing, Holtsinger admitted to soliciting and receiving more than $1.1 million from investors in the State of Iowa between 2005 and 2012. He represented to the investors that he would put their money into investment accounts; however, he actually used most of it for personal expenses or to pay back investors whose money he had misappropriated earlier.Holtsinger admitted that he ended up exhausting all the funds he received from investors. He then attempted to conceal his fraud by falsely informing the investors that their funds had been frozen as a result of actions taken by state or federal authorities. In reality, the funds were gone.

Holtsinger also admitted during the earlier hearing to attempting to convince investors to lie to law enforcement officers regarding the purpose of the funds they had given him. He instructed them to describe their payments to him as “interest free loans,” when in reality they were investments. Holtsinger also threatened that anyone who cooperated with law enforcement officers would not be repaid.

U.S. Attorney Nicholas A. Klinefeldt said the sentence reflects the seriousness of the offense and should have a deterrent effect on others. “These victims thought they were investing their money in a safe place,” he said. “In reality, it was nothing more than a Ponzi scheme. I am pleased that Holtsinger will have to spend more than seven years in jail as punishment for defrauding people who considered him to be a friend, and I hope his sentence will convince anyone else who might be tempted to engage in similar conduct not to do so.”

The case was investigated by the United States Secret Service, Internal Revenue Service, and Iowa Attorney General’s Office, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.

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DES MOINES, IA – Ralph L. Schippers, age 58, was sentenced to 41 months in federal prison for wire fraud, announced United States Attorney Nicholas A. Klinefeldt. Schippers also was ordered to pay restitution in the amount of $1,433,825.37, and was ordered to serve three years of supervised release following release from prison. Sentence was imposed by United States District Judge John A. Jarvey.

Schippers pleaded guilty to the charge on September 17, 2012, and admitted to embezzling more than $1.4 million from his employer, Granger Motors, over a fourteen-year period. Schippers accomplished the fraud by manipulating the dealership’s accounting system and causing monies to be wired or deposited to his personal bank account, making fraudulent journal entries in order to conceal the fraud. Schippers was the dealership’s office manager and, as such, was responsible for managing the dealership’s accounting systems, payroll management, and similar tasks. Schippers admitted that he used some of the embezzled funds to purchase goods and services for himself and his family, including international airline tickets, hotel accommodations, meals at Des Moines-area restaurants, golf-related items, and jewelry.

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

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COUNCIL BLUFFS, IA- On January 16, 2013, William Martin Fiorito, Jr., a 45 year old resident of Pottawattamie County, Iowa, was sentenced by United States District Judge John Jarvey to 65 months imprisonment for bank robbery. Judge Jarvey also ordered Fiorito to serve a three year term of supervised release following incarceration. The defendant pled guilty on October 4, 2012, admitting to the commission of bank robbery by entering Peoples National Bank located at 333 West Broadway, Council Bluffs, Iowa on October 11, 2011, where he produced a note demanding money and advising he had a firearm. The teller at the time of the robbery observed what appeared to be the grips of a handgun protruding from the top of Fiorito’s waistband, and the teller provided money to Fiorito as demanded. Fiorito left the bank and entered a second Peoples National Bank located at 1600 West Broadway, Council Bluffs, Iowa, a few minutes later. Fiorito again demanded money, but left the second bank without obtaining any money.

The investigation was conducted by the Council Bluffs, Iowa, Police Department, Pottawattamie County Sheriff’s Office, 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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COUNCIL BLUFFS, IA – On January 16, 2013, two Council Bluffs men, Robert Glade Edie III (age 35) and Patrick Allen Eggerling (age 19) were sentenced in United States District Court in Council Bluffs, Iowa for the burglary of Farmer’s Bank and Trust in Earling, Iowa, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge John A. Jarvey sentenced Robert Edie to 34 months in prison, to be followed by 24 months of supervised release. The Judge sentenced Patrick Eggerling to 15 months in prison, to be followed by 36 months of supervised release. The Judge also ordered each defendant to pay a $100.00 special assessment to the Crime Victim Fund, and ordered that both defendants were jointly and severally liable for $10,918.80 in restitution.

Both defendants had previously entered guilty pleas to the bank burglary charge. The charge arose out of an April 12, 2012 incident in which the defendants during the night entered an exterior lobby of the Farmer’s Bank and Trust in Earling, Iowa, attached a log chain to an ATM, and using a stolen motor vehicle, pulled the ATM from its base and drug the ATM from the bank lobby. The defendants then put the ATM in the back of the stolen SUV and fled Earling, Iowa. The ATM contained approximately $6,000.00 when stolen by the defendants. A high speed chase ensued in which Harrison County Sheriff deputies, Pottawattamie County Sheriff deputies, and Iowa State Patrol troopers pursued the fleeing defendants. The chase included defendants driving at speeds in excess of 90 miles per hour in the wrong direction on the interstate, until Defendant Edie, driving the vehicle, lost control of the vehicle, with the vehicle becoming airborne, leaving the interstate, crashing through a fence, and coming to rest in a field. Law enforcement personnel captured the defendants hiding in a ravine near the wrecked vehicle, and recovered the ATM, still containing the stolen money. Both defendants were on State of Iowa probation or parole at the time of the bank burglary.

This case was investigated by the Shelby County Sheriff’s Department and the Federal Bureau of Investigation, with assistance from the Harrison County Sheriff’s Department, the Pottawattamie County Sheriff’s Department, and the Iowa State Patrol. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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DAVENPORT, IA – On January 4, 2013, Corey David Hagen, age 46, was sentenced to two months of imprisonment followed by six months of home confinement for committing wire fraud, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Judge James E. Gritzner also sentenced Hagen to three years of supervised release and ordered him to pay $150,000 in restitution to the victim.

While selling boats for International Marine Distributors, LLC, Hagen directed customers to wire money directly into his personal account instead of into the IMD corporate account. Hagen did not pass these funds on to the company and used them for personal expenditures. Hagen also invested $125,000 in a new business venture and falsely represented that the funds were his personal funds when in actuality the money belonged to IMD.

This case was investigated by the Coralville, 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 January 4, 2013, Osvaldo Montes Olarte, age 36, was sentenced to 77 months of imprisonment for illegally reentering the United States and for failing to register as a sex offender, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Olarte to three years of supervised release for the immigration offense and seven years of supervised release for his failure to register as a sex offender.

Olarte illegally entered the United States in 1995. Olarte was convicted of Sexual Abuse in the Third Degree in Iowa in 2001 and he was deported in 2003 after his incarceration. As a result of his sexual abuse conviction Olarte was required to register as a sex offender. Olarte reentered the United States and was deported again in both 2006 and 2010. Olarthe thereafter illegally reentered the United States for the third time and returned to Iowa. Olarte knowingly failed to register as a sex offender upon his return to Iowa.

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

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DES MOINES, IA – Beverly Joan DeRonde, age 61, of Pella, Iowa, pleaded guilty to one count of mail fraud in a proceeding before United States Magistrate Judge Ross A. Walters, announced United States Attorney Nicholas A. Klinefeldt. Sentencing has been scheduled for April 5, 2013, at the United States Courthouse in Des Moines before Chief Judge James E. Gritzner.

DeRonde was charged with multiple counts of mail fraud in an indictment filed on August 28, 2012. The indictment alleged that DeRonde obtained approximately $731,950 as a result of these offenses.

In a written plea agreement filed on January 4, 2013, DeRonde admitted that she engaged in a scheme to defraud multiple individuals and obtain money by false pretenses over a seven-year period, from January 2003 through June 2010. DeRonde would ask various friends, relatives, and acquaintances to loan her money, supposedly for surprise birthday or anniversary presents for her husband or to purchase equipment for a boat repair shop. She promised large amounts of interest and often would write a check at the time of the purported loan, instructing the individual loaning the money not to negotiate the check until a later date.

DeRonde admitted that she did not use the loan proceeds as represented but, instead, used the money to purchase antiques, jewelry, Rolex watches, and other consumer items. She also used loan proceeds to repay loans she previously had obtained from other individuals. She admitted to using the United States mails to send letter to various individuals with excuses why she was unable to repay the loans, promising a new date by which she would have the money, and often instructing the individuals to keep the loans a secret from her husband.

DeRonde faces a maximum penalty of up to 20 years in prison, a maximum fine of $250,000, or both a fine and imprisonment. Additionally, under the plea agreement, DeRonde has agreed that the sentencing judge should impose an order of restitution for all relevant conduct and to the forfeiture of certain property found at her residence and a storage unit, which was purchased with the proceeds of the mail fraud. DeRonde remains released, under the supervision of the United States Probation Office, pending imposition of sentence.

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

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DAVENPORT, IA – On January 2, 2013, James Edward Hall was arrested on a federal criminal complaint for producing child pornography involving a juvenile male victim. Hall had an initial appearance before United States District Judge John A. Jarvey shortly after his arrest. A preliminary hearing and a detention hearing are scheduled in Hall’s case for Friday, January 4, at 2:30 p.m.

Production of child pornography is punishable by at least 15 years imprisonment up to a maximum of 30 years imprisonment, a $250,000 fine, a minimum of 5 years supervised release up to a maximum term of supervised release of life, and a $100 special assessment to be paid to the crime victims assistance fund.

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

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