District of Kansas

WICHITA, KAN. – A Kansas woman was sentenced today to a year of supervised probation for mail fraud in a scheme to make it appear her employer left her half his estate when he died, U.S. Attorney Stephen McAllister said. In addition, she was ordered to make monthly payments of $100 to Fort Hays State University during her probation.

Wanda Oborny, 66, Hays, Kan., pleaded guilty to one count of mail fraud. In her plea, she admitted that in 2013 she mailed a fraudulent purported codicil to Kansas banker Earl O. Field’s will to Ft. Hays State University. The document falsely claimed Field had left a fourth of his estate to the university, a fourth to his lawyer and half to Oborny. In fact, Field left the majority of the estate to the university.

McAllister commended the FBI, Assistant U.S. Attorney Annette Gurney and Assistant U.S. Attorney Debra Barnett for their work on the case.

WICHITA, KAN. – A Salina pharmacist was sentenced today to serve 36 months on probation -- including 18 months house arrest -- for diverting prescription drugs containing opioids, U.S. Attorney Stephen McAllister said. Her husband, who received the drugs from her, got the same sentence.

Kirsty C. Hartley, 29, Salina, Kan., pleaded guilty to one count of distributing a prescription painkiller outside the usual course of professional practice without a legitimate medical reason. Co-defendant Dalton R. Hartley, 29, Salina, Kan., pleaded guilty one count of acquiring controlled substances through fraud.

 Kirsty Hartley admitted she unlawfully distributed approximately 21,289 tablets of hydrocodone with acetaminophen while working at a CVS Pharmacy in Salina. She gave the pills to her husband for him to consume or trade to others for marijuana.

In her plea agreement, Kirsty Hartley agreed to surrender her pharmacist’s license. Both defendants agreed to perform 200 hours of community service.

McAllister commended the Salina Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Mona Furst for their work on the case.

WICHITA, KAN. – A Sumner County man was sentenced today to serve a year on probation and pay a $1,000 fine for trying to get out of a traffic ticket by pretending to be an FBI agent, U.S. Attorney Stephen McAllister said.

Jarrod M. Andra, 36, Milan, Kan., pleaded guilty to one count of impersonating an agent. In his plea, he admitted that on Nov. 30, 2018, he was stopped for speeding in Sumner County by a Sumner County Sheriff’s Deputy. Andra claimed he was a special agent for the FBI and presented what appeared to be an FBI identification card with his photo. 

McAllister commended the FBI, the Sumner County Sheriff’s Department and Assistant U.S. Attorney Lanny Welch for their work on the case.

KANSAS CITY, KAN. – A man from Mexico was indicted here today on federal charges of heroin trafficking, U.S. Attorney Stephen McAllister said.

Orlando Alexis Gaxiola-Guevara, 23, a citizen of Mexico, is charged with one count of possession with intent to distribute heroin. On June 26, 2019, the defendant was a passenger in a 2008 Ford Fusion eastbound on I-70 when a deputy with the Logan County Sheriff’s Office stopped the car. According to court documents, investigators found approximately five pounds of black tar heroin and brown powder heroin hidden in the quarter panels of the car.

If convicted, the defendant faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Logan County Sheriff’s Office, the Kansas Highway Patrol and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle McFarlane is prosecuting.

 

OTHER INDICTMENTS

 

 Asenath Roland, 43, Kansas City, Kan., former president of the Kansas Postal Workers Union, is charged with stealing more than $4,700 that belonged to the union. The crime is alleged to have occurred in May and June 2017 in Wyandotte County, Kan.
         

If convicted, she faces up to five years in federal prison and a fine up to $250,000. The Department of Labor – Office of Inspector General investigated. Assistant U.S. Attorney Leon Patton is prosecuting.

Mark D. Young, 27, is charged with one count of escaping from the custody of the U.S. Bureau of Prisons. A criminal complaint filed earlier shows he was serving the latter part of a sentence at a residential re-entry center in Leavenworth and failed to return on July 10, 2019, after leaving on a work pass.

If convicted, he faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Leon Patton is prosecuting.

 

Richey Farmer, 26, is charged with one count of escaping from federal custody at the Grossman Community Corrections Center in Leavenworth. The crime is alleged to have occurred May 9, 2019.

If convicted, he faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.

Christopher Lee Cowan, Sr., 47, is charged in a superseding indictment with unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred Feb. 3, 2019, in Shawnee County, Kan.

If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Greg Hough is prosecuting.

Samantha Jo Case, 27, Wichita, Kan., and Robert Lee Forgie, 28, Wichita, Kan., each are charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 23, 2019, in Sedgwick County, Kan.

If convicted, they face a penalty of not less than five years and not more than 40 years on the drug charge and not less than five years on the gun charge. The Sedgwick County Sheriff’s Office investigated. Special Assistant U.S. Attorney Katherine Andrusak is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

TOPEKA, KAN. – A jury today found a Lawrence developer guilty on charges of disposing of asbestos in violation of the Clean Air Act.

Thomas S. Fritzel, 53, Lawrence, Kan., was convicted on the following counts:

• Failing to notify authorities before removing asbestos (count two).
• Failing to keep asbestos wet during demolition to prevent air contamination (count three).
• Failing to dispose of asbestos in leak-tight containers (count four).

 

During trial, the government presented evidence that Fritzel violated federal laws for handling asbestos during demolition and renovations at the Alvamar Country Club in Lawrence. The government presented evidence to show that Fritzel knew that the roof of the country club contained 75 percent chrysotile asbestos. The previous owners, who sold the club to Fritzel in January 2016, had decided not to replace the roof because of the cost of abating the asbestos.

 

On October 19, 2016, the Kansas Department of Health and Environment told Fritzel to get a licensed asbestos contractor to remove asbestos from the site and dispose of it properly. On Oct. 25, 2016, KDHE inspected the site and determined asbestos debris had been removed and hauled to Hamm Landfill in Perry, Kan., which is not approved for asbestos disposal.

Sentencing will be set for a later date. He faces a penalty of up to two years in federal prison and a fine up to $250,000 on count two and up to five years and a fine up to $250,000 on counts three and four. First Assistant U.S. Attorney Duston Slinkard commended the Environmental Protection Agency – Criminal Investigation Division and Assistant U.S. Attorney Richard Hathaway for their work on the case.

 

WICHITA, KAN. – A Wichita man pleaded guilty today to threatening an employee of the pro-life organization Operation Rescue, U.S. Attorney Stephen McAllister said.

Christopher M. Thompson, 22, Wichita, Kan., pleaded guilty of one count of making a threat. In his plea, he admitted making three phone calls to Operation Rescue in one day containing threats against the group’s employees.

Sentencing is set for Oct. 15. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Ryan McCarty for their work on the case.

WICHITA, KAN. – A tax preparer in Dodge City pleaded guilty today to filing false income tax returns, U.S. Attorney Stephen McAllister said.

Maria R. Garcia, 48, Dodge City, Kan., pleaded guilty to one count of preparing tax returns containing false statements. In her plea, she admitted preparing numerous tax returns for tax years 2013, 2014 and 2015 that contained false statements. As a result, her clients received refunds in excess of what they were owed. The total loss to the Internal Revenue Service was more than $101,700.

The plea agreement calls for Garcia to pay the full amount in restitution and to be permanently prohibited from working as a tax preparer.

Sentencing is set for Oct. 15. She faces a penalty of up to three years in federal prison and a fine up to $100,000. McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Mona Furst for their work on the case.

KANSAS CITY, KAN. – A Kansas priest pleaded guilty in federal court here today to possessing child pornography, U.S. Attorney Stephen McAllister said.

In his plea, Christopher Rossman, 46, who formerly served at the Annunciation Catholic Church in Baldwin City, Kan., admitted that investigators found child pornography on his Samsung Galaxy tablet. The crime occurred in September 2016 when monitoring software installed on Rossman’s computer devices reported he had visited adult pornography and child pornography websites. The archdiocese forwarded the report to law enforcement.

When investigators tried to find Rossman in Baldwin City, they learned that his sister had taken possession of the Galaxy tablet and tried to run over it a number of times. A forensics examination found files on the device depicting prepubescent females engaged in sexual activities.

Sentencing will scheduled at a later date. The crime carries a penalty of up to 10 years in federal prison and a fine up to $250,000. U.S. Attorney Stephen McAllister commended FBI task force agent Angie Jones for her work on the case and the Archdiocese for it its cooperation. McAllister and Assistant U.S. Attorney David Zabel are prosecuting.

TOPEKA, KAN. – A grand jury today returned indictments against two Kansas postal employees charged in separate cases with stealing mail, U.S. Attorney Stephen McAllister said.

Stacy A. Vasko, 31, Salina, Kan., was charged with two counts of theft by a postal employee. The indictment alleged she stole gift cards from the mail. The crimes were alleged to have occurred in February and April 2019 in Brookville, Kan.

In a separate case, Timothy J. Pacha, 28, Herkimer, Kan., was charged with one count of stealing mail and one count of destroying or detaining mail. The crimes are alleged to have occurred from January to April 2019 in Marysville, Kan.

If convicted, the defendants face up to five years in federal prison and a fine up to $250,000 on each count. The U.S. Postal Service – Office of Inspector General investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.

OTHER INDICTMENTS

 Illya Tyler, 53, Indianapolis, Ind., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 11, 2019, in Wyandotte County, Kan.

If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. U.S. Attorney Stephen McAllister and Special Assistant U.S. Attorney Michelle McFarlane are prosecuting.           

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

 

KANSAS CITY, KAN. – A Leavenworth man was sentenced today to 154 months in federal prison for armed bank robbery, U.S. Attorney Stephen McAllister said.

Damon Hammeke, 26, Leavenworth, Kan., pleaded guilty to one count of armed bank robbery and one count of brandishing a firearm during a robbery. In his plea, he admitted that on Nov. 21, 2017, he robbed the Country Club Bank at 2310 South 4th Street in Leavenworth. He entered the bank wearing a white jacket and black mask and carrying a handgun. He left the bank with money.

Two days later, an officer in Tonganoxie attempted to stop him for a traffic offense. Hammeke fled, leading police on a high-speed chase through Tonganoxie, Basehor, Lansing, Leavenworth, Platte County, Mo., and Kansas City, Kan., before they were able to stop him.

McAllister commended the FBI, the Tonganoxie Police Department, the Kansas Highway Patrol, the Platte County, Mo., Sheriff’s Department, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Jabari Wamble for their work on the case.

WICHITA, KS - Today, officials from the Department of Justice's Bureau of Justice Assistance, the United States Attorney's Office's, District of Kansas, the Wichita Police Department and other city, state and federal law enforcement agencies convened in Wichita to initiate the National Public Safety Partnership (PSP) program with the Wichita Police Department. This Justice Department program is a three-year engagement that seeks to leverage department assets in support of a local jurisdictions' commitment to drive down violent crime.  

On June 3, 2019, Attorney General William Barr announced the selection of the Wichita Police Department as one of ten FY 2019 PSP sites where the Justice Department will work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology and community engagement.   

Since 2017, the Justice Department has directed nearly $14.9 million in customized training and technical assistance to help build crime fighting capacity in PSP sites, including $6.6 million to support the FY 2019 sites through FY 2022. PSP seeks to bring law enforcement stakeholders together to work collaboratively in reducing violent crime attributed to felonious firearm use, drug trafficking and human trafficking.  

 

“Today our team is on-site in Wichita to collaborate with local law enforcement officials in their mission to improve public safety and drive down violent crime,” said Jon Adler, Director of the Bureau of Justice Assistance.  "Through the Public Safety Partnership, we are committed to fulfilling the Attorney General's priority of supporting local law enforcement combat violent gangs, felonious firearms use and drug trafficking," added Adler.

“This program will be emphasizing new technology that will help analyze local crime trends, identify hotspots and rapidly process crime scene data,” U.S. Attorney McAllister said. “Just as important, we’re going to draw on new ideas and best practices from a national network of major cities that are members of the Public Safety Partnership.”

“The WPD is excited to embrace this opportunity to more effectively address violent crime,” WPD Chief Gordon Ramsay said. “This opportunity allows us to further partner with our federal law partners and improve our community.”

 

Since 2017, the Justice Department has worked with more than 30 local jurisdictions under the nationwide PSP program. Many participating cities have already seen dramatic reductions in violent crime. New Orleans ended 2018 with 146 murders, the lowest number of murders since the early 1970s. In Milwaukee, homicides declined in 2018 for a third straight year after hitting a deadly peak in 2015.   

 

Agencies in attendance at this meeting will include the U.S. Attorney’s Office, District of Kansas; the Office of Justice Programs; the Federal Bureau of Investigation; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Wichita Police Department; the Sedgwick County District Attorney’s Office; Mayor Jeff Longwell’s Office; the Sedgwick County Sheriff’s Office, Wichita Municipal Court and the Kansas Bureau of Investigation,

 

For more information about PSP, visit https://www.nationalpublicsafetypartnership.org.

WICHITA, KAN. – A federal jury found a Wichita-area pharmacist guilty today on charges of unlawfully dispensing opioid prescription drugs, U.S. Attorney Stephen McAllister said.

Ebube Otuonye, 46, Bel Aire, Kan., was convicted on the following counts:

Conspiracy to unlawfully distribute prescription drugs (count one).

Unlawfully distributing prescription drugs (count two).

Health care fraud (counts three and four).

The crimes occurred while Otuonye owned and operated Neighborhood Pharmacy at 2810 E. 21st in Wichita, where he filled prescriptions for patients of Dr. Steven R. Henson. In October 2018, Henson was convicted of unlawfully distributing prescription drugs outside the usual course of professional medical practice and without a legitimate medical purpose. In March 2019, Henson was sentenced to life in federal prison.

During trial, prosecutors presented evidence that Henson’s patients had difficulty filling Henson’s prescriptions at pharmacies other than Neighborhood Pharmacy. Otuonye’s pharmacy charged more than other pharmacies and he set up a system requiring Henson’s patients to fill three non-narcotic prescriptions when filling a narcotic prescription.

A sign in the pharmacy said: “You may use another pharmacy if all you want to fill is (a) narcotic prescription.”

Evidence at trial showed Henson’s patients took their prescriptions to Otuonye himself because another pharmacist at Neighborhood Pharmacy refused to fill them. Prosecutors argued that Otuonye failed to perform his professional responsibilities by continuing to fill prescriptions for Henson’s patients despite warning signs including: Large numbers of prescriptions for highly addictive drugs, customers paying cash, multiple patients coming in at once with Henson’s prescriptions and patients from the same family presenting identical prescriptions.

Otuonye filled prescriptions for more than 21,600 tablets of oxycodone, more than 48,600 tablets of methadone, more than 18,000 tablets of hydromorphone and more than7,800 tablets of alprazolam.

Prosecutors also presented evidence that Otuonye submitted claims to Medicare and Medicaid for filling Henson’s prescriptions.

 Sentencing is set for Oct. 23. Counts one and two carry a penalty of up to 20 years in federal prison and a fine up to $1 million. Counts three and four carry a penalty of up to 10 years and a fine up to $250,000.

McAllister commended the Drug Enforcement Administration, the Overland Park Police Department, the Newton Police Department, the Sedgwick County Sheriff's Office, the Lee's Summit Police Department, the Johnson County Sheriff's Office, the U.S. Department of Health and Human Services, Assistant U.S. Attorney Mona Furst, Assistant U.S. Attorney Jason Hart, Assistant U.S. Attorney Ryan McCarty, and Special Assistant U.S. Attorney Katherine Andrusdak for their work on the case.

A Kansas City, Missouri, woman was sentenced to prison today for wire fraud and aggravated identity theft related to the filing of false tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas. 

U.S. District Court Judge Carlos Murguia of the District of Kansas sentenced Antoinette Winston, also known as Tweety, to 34 months in prison and ordered her to pay $165,392.48 in restitution to the Internal Revenue Service (IRS). On Aug. 21, 2018, Winston pleaded guilty to one count of wire fraud and one count of aggravated identity theft. 

According to documents filed with the court, from 2012 to May 2015, Winston stole and used personal identifying information, including names and social security numbers of other individuals in order to file fraudulent income tax returns requesting refunds from the IRS. Winston also used this information to obtain pre-paid debit cards in the names of these individuals, and directed the IRS to pay the fraudulent refunds to these pre-paid debit cards. After the IRS deposited the refunds on the pre-paid debit cards, Winston used the cards to withdraw cash at banks and retail stores. The intended tax loss to the IRS from Winston’s scheme was more than $250,000.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Scott Rask and Assistant Chief Matthew J. Kluge of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

WASHINGTON – A Kansas City, Missouri, woman was sentenced to prison today for wire fraud and aggravated identity theft related to the filing of false tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas. 

U.S. District Court Judge Carlos Murguia of the District of Kansas sentenced Antoinette Winston, also known as Tweety, to 34 months in prison and ordered her to pay $165,392.48 in restitution to the Internal Revenue Service (IRS). On Aug. 21, 2018, Winston pleaded guilty to one count of wire fraud and one count of aggravated identity theft. 

According to documents filed with the court, from 2012 to May 2015, Winston stole and used personal identifying information, including names and social security numbers of other individuals in order to file fraudulent income tax returns requesting refunds from the IRS. Winston also used this information to obtain pre-paid debit cards in the names of these individuals, and directed the IRS to pay the fraudulent refunds to these pre-paid debit cards. After the IRS deposited the refunds on the pre-paid debit cards, Winston used the cards to withdraw cash at banks and retail stores. The intended tax loss to the IRS from Winston’s scheme was more than $250,000.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Scott Rask and Assistant Chief Matthew J. Kluge of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

WICHITA, KAN. – A Wichita man was indicted today on a federal firearm charge, U.S. Attorney Stephen McAllister said.

Andrew Patrick Rizzo, 26, Wichita, Kan., is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking. The crime is alleged to have occurred July 11, 2019, in Wichita.

According to court records, investigators served a search warrant at Rizzo’s home in the 4800 block of east Gilbert. They found methamphetamine, heroin, marijuana, a digital scale and pipes for smoking narcotics. They also found a 9 mm Smith & Wesson handgun that had been reported stolen and a bulletproof vest.

If convicted, Rizzo could face a penalty of not less than five years in federal prison. The Sedgwick County Sheriff’s Office investigated. Special Assistant U.S. Attorney Katherine Andrusak is prosecuting.

 

OTHER INDICTMENTS

 

Fernando Campos-Zubia, who is not a citizen of the United States, is charged with one count of unlawfully re-entering the United States after being deported. If convicted he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

 

Bruce L. Hay, 50, Osawatomie, Kan., is charged with four counts of theft of public money. The indictment alleges Hay made false claims in order to receive disability payments from the Department of Veterans Affairs Compensation and Pension Benefits. The crimes are alleged to have occurred in 2016 and 2017 in Miami, Kan.

If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Veterans Administration – Office of Inspector General investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.

 

Deonte L. Jordan, 20, Wichita, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred July 4, 2019, in Sedgwick County, Kan.

If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

 

KANSAS CITY, KAN. – A Kansas City, Kan., woman pleaded guilty in federal court today to her role in crashing a car into a Cabela’s store to steal guns, U.S. Attorney Stephen McAllister said.

Brenda Tosh, 27, Kansas City, Kan., pleaded guilty to one count of conspiring to steal guns from a federally licensed firearms dealer. In her plea, she admitted that she and a co-defendant crashed a car into a Cabela’s store in Kansas City, Kan. They took long guns from the firearms section of the store and placed them into a shopping cart. According to court records, the guns included two 12-gauge shotguns, a .22-caliber rifle, a .308-caliber rifle and a .223-caliber rifle.

Law enforcement officers arrived and arrested Tosh before she could leave the store. The co-defendant was arrested later, after fleeing the store and stealing a car from a nearby dealership.

Tosh is set for sentencing Sept. 30. Both parties have agreed to recommend a sentence of a year and a day in federal prison.

Co-defendant Kyle Mendez, 29, Kansas City, Kan., is scheduled for a change of plea hearing Aug. 19.

 McAllister commended the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Chris Oakley for their work on the case.

KANSAS CITY, KAN. - Two Kansas City area chiropractors have paid $350,000 to settle allegations that they submitted false claims to Medicare, U.S. Attorney Steven McAllister said today.

Brothers Ryan Schell and Tyler Schell, and their former clinic, Kansas City Health and Wellness Clinic, P.A., agreed to pay the United States to settle allegations that they violated the False Claims Act. The Schells’ clinic was located in Lenexa, Kansas. 

In an action filed in federal court in Kansas, the United States alleged that the Schells claimed they provided treatments for peripheral neuropathy and charged Medicare for procedures that were not medically necessary, not actually provided, or not covered by the program.  Peripheral neuropathy affects nerves in the hands and feet and includes symptoms such loss of sensation and/or a burning sensation.

The claimed procedures included nerve conduction tests, nerve block injections, ultrasound needle guidance and the purported use of vasopneumatic devices. The complaint filed by the United States alleged that claims for the nerve tests falsely stated that they were performed by doctors when they were not actually interpreted by any qualified health care professional; that the nerve block injections and needle guidance were not medically necessary; and that the Schells’ claims for the vasopneumatic devices were instead merely for the use of mechanical massage chairs.

Brian Holt, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations (HHS OIG/OI), Kansas City Region, stated,    “Our office will continue to focus our efforts on those providers receiving improper payments for services not covered by Medicare in order to ensure the integrity of HHS programs.”

According to the agreement, the Schells and their clinic deny any wrongdoing.

The federal district court case is United States v. Schell et al. No. 18-CV-02706. HHS OIG/OI and the United States Attorney’s Office for the District of Kansas investigated. Assistant United States Attorney Jon Fleenor represented the government.

KANSAS CITY, KAN. – A federal court jury today returned guilty verdicts against two defendants who were arrested after their meth lab caught fire, U.S. Attorney Stephen McAllister said.

The jury verdict was as follows:

Orlando Cortez-Nieto, 42, Kansas City, Kan.: Guilty on count one (conspiracy to manufacture methamphetamine), count two (manufacturing methamphetamine within 1,000 feet of Klamm Park playground), count three (possession with intention to distribute methamphetamine within 1,000 feet of Klamm Park playground) and count four (maintaining a residence in furtherance of drug trafficking.

Jesus Cervantes-Aguiler, 22, Kansas City, Kan.: Guilty on count one (conspiracy to manufacture methamphetamine), count two (manufacturing methamphetamine within 1,000 feet of Klamm Park playground, count three (possession with intention to distribute methamphetamine within 1,000 feet of Klamm Park playground and count four (maintaining a residence in furtherance of drug trafficking.

During trial, prosecutors presented evidence that on Dec. 1, 2017, firefighters responded to a house fire at 2739 Cleveland in Kansas City, Kan. They discovered a methamphetamine conversion lab inside the house. Prosecutors introduced evidence tying the defendants to the drug lab, including a blue spiral notebook in which cash transactions were recorded, as well as business surveillance video showing a defending buying items found in the meth lab.

Sentencing is set for Oct. 29. The counts on which the defendants were convicted carry the following penalties:

• Counts one, two and three (conspiracy, manufacturing and possession with intent to distribute): Not less than 10 years in federal prison and a fine up to $20 million.
• Count four: Maintaining a residence in furtherance of drug trafficking: Not less than a year and not more than 40 years and a fine up to $1 million.

 

McAllister commended the Drug Enforcement Administration, Assistant U.S. Attorney Kim Flannigan and Assistant U.S. Attorney Trent Krug for their work on the case.

TOPEKA, KAN. – A man from Mexico was sentenced today to 51 months in federal prison after a state trooper found 15 pounds of crystal methamphetamine hidden in child booster seats and other locations in his car, U.S. Attorney Stephen McAllister said.

Israel Felix Garcia, 32, was a passenger in a car driven by his girlfriend when the Kansas Highway Patrol stopped the car on I-70 at milepost 341 in Wabaunsee County, Kan. A trooper found five plastic wrapped bundles of crystal methamphetamine in two booster seats in the car. He found more bundles hidden under the rear window deck, bringing the total to 15 pounds. Garcia told investigators he was being paid $400 per bundle to drive the drugs from California to Topeka, Kan. He said his girlfriend and two children in the car did not know about the methamphetamine.

McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Stephen Hunting for their work on the case.

WICHITA, KAN. – A Larned man was sentenced today to 27 months in federal prison for causing a series of denial of service attacks on a Kansas internet service provider, U.S. Attorney Stephen McAllister said.

 

In April, a jury convicted Michael D. Golightley, 35, Larned, Kan., on seven counts of damaging a protected computer and one count of threatening to damage a protected computer.

 

During trial, prosecutors presented evidence that Golightley contacted an entity called DDosCity to arrange for a series of attacks on Nex-Tech’s computers.

 

Nex-Tech is an internet service provider with offices in Hays, Lenora, Beloit, Concordia, Courtland, Dodge City, Downs, Great Bend, Hill City, Hoxie, McPherson, Norton, Osborne, Phillipsburg, Plainville, Quinter, Russell, Salina, Smith Center, Stockton and WaKeeney.

 

Prosecutors presented evidence that on March 30 and 31, 2017, Nex-Tech was hit by three denial of service attacks that overloaded the company’s servers.

 

Before the attacks, Golightley sent Nex-Tech two threats. He was angry about the company removing an ad he placed on Nex-Tech Classifieds for a PlayStation 3 game that been “jail broken,” or modified to bypass a system security check. Golightley placed the ad a second time and sent Nex-Tech a warning that he would “violate this site by bringing it offline” if the ad were removed again. He added: “If u make me upset, I will retaliate -- your choice.”

 

McAllister commended the FBI, Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Ryan McCarty for their work on the case.

TOPEKA, KAN. – A woman who operated massage parlors in Lawrence and Topeka was sentenced today to three years on federal probation for operating a prostitution business, U.S. Attorney Stephen McAllister said. In addition, the defendant agreed to pay a $650,000 judgement, which represents the proceeds of the crime.

Weiling Nielsen, 54, pleaded guilty to one count of conspiracy. Nielsen owned and operated Naima Asian Massage and Serenity Health Spa in Lawrence, as well as Jasmine Massage in Topeka. In her plea, she admitted the massage parlors provided sexual services to customers for payment in cash. Nielsen and others advertised the services on the internet. Nielsen and her husband deposited cash into various bank accounts and purchased money orders for deposit in bank accounts in California.

McAllister commended the FBI, the Douglas County Sheriff’s Office, the Topeka Police Department, the Salina Police Department and Assistant U.S. Attorney Christine Kenney for their work on the case.

TOPEKA, KAN. – A Topeka man was indicted today on charges of robbing two cash loan stores, U.S. Attorney Stephen McAllister said.

Derick Renee Crawford, 29, Topeka, Kan., was charged with two counts of commercial robbery. The indictment alleges Crawford committed the following robberies:

Advance America, 2232 Louisiana Street, Lawrence, Kan., Feb. 21, 2019.

Advance America, 1947 Northwest Topeka Blvd., Topeka, Kan., March 29, 2019.

If convicted, Crawford faces a penalty of up to 20 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

 

OTHER INDICTMENTS

 

Tapoleon B. Hendricks, 24, Topeka, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred June 14, 2019 in Topeka, Kan.

 

If convicted, Hendricks faces a penalty of up to 10 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

TOPEKA, KAN. – A former president of a credit union in Topeka was sentenced today to three years on supervised release, said U.S. Attorney Stephen McAllister. In addition, the defendant agreed to pay approximately $39,895 in restitution.

Connie Marie Kent, 52, Topeka, Kan., pleaded guilty to one count of theft from a credit union. In her plea, she admitted the crime occurred while she was an officer and employee of 1st Kansas Credit Union, formerly the Post Office Credit Union. Membership in the credit union was limited to government employees.

McAllister commended the Topeka Police Department and Assistant U.S. Attorney Rich Hathaway for their work on the case.

WICHITA, KAN. – A Wichita woman pleaded guilty Wednesday to four commercial robberies, U.S. Attorney Stephen McAllister said.

Savannah Cole, 21, Wichita, Kan., pleaded guilty to four counts of robbery. In her plea, he admitted committing the following robberies:

• Dollar General Store, 915 S. Glendale in Wichita, Nov. 22, 2017. Cole admitted she and co-defendant Kenneth W. Cade, 29, Wichita, Kan., went into the store together to rob it. Cade pointed a gun at an employee and demanded money.
• C-Store, 837 S. Oliver in Wichita, Feb. 7, 2018. Cole admitted she pointed a gun at an employee and demanded money. Cade stayed outside as a lookout.
• Arby’s, 4308 E. Harry in Wichita, Feb. 14, 2018. Cole and Cade went into the store to rob it. Cade pointed a firearm at an employee and demanded money.
• Circle K Store, 515 N. Seneca in Wichita, Feb. 14, 2018. Cole and Cade went into the store to rob it. Cole pointed a gun at the clerk and demanded money. Cade grabbed the cash

 

Sentencing is set for Sept. 16. She faces a penalty of up to 20 years in federal prison and a fine up to $250,000.

McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case, which was prosecuted as part of Project Safe Neighborhoods, a U.S. Department of Justice initiative targeting violent crime.

WICHITA, KAN. – A Wichita man was sentenced Monday to 15 years in federal prison for trafficking in methamphetamine, U.S. Attorney Stephen McAllister said.

Daniel C. Nicholson, 54, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted he bought pound quantities of methamphetamine outside Kansas and used a network of subordinates to store and distribute the drugs in Wichita.

Investigators found 27 pounds of methamphetamine when they served a search warrant at Nicholson’s home in the 11000 block of east Lewis in Wichita. They also found $31,952 in cash.

McAllister commended the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind for their work on the case.

WICHITA, KAN. – A Wichita man pleaded guilty Wednesday to four commercial robberies, U.S. Attorney Stephen McAllister said.

Kenneth W. Cade, 29, Wichita, Kan., pleaded guilty to four counts of robbery and one count of carrying a firearm during a robbery. In his plea, he admitted committing the following robberies:

• Dollar General Store, 915 S. Glendale in Wichita, Nov. 22, 2017. Cade admitted pointing a gun at an employee and demanding money.

 

• C-Store, 837 S. Oliver in Wichita, Feb. 7, 2018. Cade admitted serving as a lookout while a co-defendant pointed a gun at an employee and demanded money.

 

• Arby’s, 4308 E. Harry in Wichita, Feb. 14, 2018. Cade admitted pointing a firearm at an employee and demanding money.

 

• Circle K Store, 515 N. Seneca in Wichita, Feb. 14, 2018. Cade admitted grabbing cash from a register after a co-defendant pointed a gun at an employee and demanded money.

Co-defendant Savannah Cole, 21, Wichita, Kan., is scheduled for a change of plea hearing June 24, 2019.

          Cade is set for sentencing Sept. 6. Both parties have agreed to recommend Cade receive a sentence in a range from 144 months to 170 months in federal prison.

McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case, which was prosecuted as part of Project Safe Neighborhoods, a U.S. Department of Justice initiative targeting violent crime.

TOPEKA, KAN. – A Junction City woman was sentenced today to five years in federal prison for possession of child pornography, U.S. Attorney Stephen McAllister said.

Kayla Michelle Simpson, 24, Junction City, Kan., pleaded guilty to one count of possessing child pornography. On Sept. 20, 2016, law enforcement seized Simpson’s iPhone. In her plea, Simpson admitted that her phone contained images of her having sex with a juvenile female.

McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case. The case was prosecuted as part of the Justice Department’s Project Safe Childhood initiative.

WICHITA, KAN. – A Wichita woman was sentenced today to 14 years in federal prison for sex trafficking of a 16-year-old girl, U.S. Attorney Stephen McAllister said.

Brittany D. Knighton-Harris, 31, Wichita, Kan., pleaded guilty to one count of sex trafficking. In her plea, Knighton-Harris admitted she recruited the girl and made arrangements for her to perform sex acts for money in Wichita and later in Topeka. The defendant posted notices on an adult web site advertising the girl’s services.

McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.

WICHITA, KAN. – A Texas woman who was arrested on a highway in Meade County, Kan., was indicted today on drug trafficking charges, U.S. Attorney Stephen McAllister said.

Dora Elizabeth Arteaga, 42, Houston, Texas, was charged with one count of possession with intent to distribute cocaine. A Kansas Highway Patrol trooper stopped Arteaga April 14, 2019, near Plains, Kan. The indictment alleges officers found approximately 4.4 pounds of cocaine in a bag behind the driver’s seat.

If convicted, Arteaga will face a penalty of no less than five years and no more than 40 years in federal prison and a fine up to $5 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.

 

OTHER INDICTMENTS

 

 Edison Javier Olivera de la Cruz, 23, Emporia, Kan., is charged with one count of misusing a Social Security number and one count of aggravated identity theft. The indictment alleges he applied for a Kansas driver’s license using a stolen Social Security number. The crimes are alleged to have occurred Feb. 15, 2017, in Lyons County, Kan.

If convicted, he faces up to five years in federal prison and a fine up to $250,000 on the Social Security charge and a mandatory two years (consecutive) on the identity theft charge. The Kansas Department of Revenue investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

Nyron J. Bowen, 29, Wichita, Kan., is charged with one count of bank fraud. The indictment alleges he deposited counterfeit checks at Emprise Bank and withdrew funds. The crimes are alleged to have occurred in 2016 in Wichita, Kan.

If convicted, he faces up to 30 years in federal prison and a fine up to $1 million. The FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

WICHITA, KAN. - Wichita business owner Brandon Steven pleaded guilty today to a federal gambling charge and agreed to forfeit more than $1 million, U.S. Attorney Stephen McAllister said. He was sentenced to three years probation and ordered to perform 200 hours of community service.

Steven, 45, Wichita, Kan., pleaded guilty to one count of being an accessory after the fact to the unlawful transmission of wagering information. In his plea, Steven admitted he acted in cooperation with co-defendant Daven Flax, who was conducting illegal private poker games. Participants were notified via text messaging about the games. The texts also contained information about payments or collections of money. After games, Steven concealed the involvement of Flax and others by hiding handwritten ledgers or computerized records detailing gambling credits, earnings and obligations of the gambling business.

McAllister commended the FBI, the Internal Revenue Service, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Aaron Smith.

KANSAS CITY, KAN. - A Miami County man who pleaded guilty to possessing child pornography was sentenced today to 70 months in federal prison, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $5,000 to the Justice for Victims of Trafficking Act Fund and $3,000 to each of 15 victims who requested restitution.

Joel Haines, 61, Paola, Kan., pleaded guilty to one count of possessing child pornography. At sentencing, the prosecutor said investigators found 1,433 digital child pornography images on Haines’ computer. The images included children under the age of two being sexually abused as well as images of girls ages 6 to 12.

McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.

KANSAS CITY, KAN. - A federal indictment unsealed today in Kansas charges a Massachusetts man with distributing counterfeit oxycodone pills that contained the powerful synthetic opioid fentanyl, U.S. Attorney Stephen McAllister said.

Anthony Stokes, 32, South Deerfield, Ma., is charged with five counts of distributing fentanyl and five counts of selling counterfeit drugs. The indictment alleges the crimes took place during December 2018 through Feb. 2019 in Wyandotte County, Kan.

The indictment alleges Stokes sold 114 tablets with counterfeit identifying marks belonging to Mallinckrodt Pharmaceuticals. The tablets contained more than 14.6 grams of fentanyl.

Stokes was arrested June 11 in Massachusetts.

 

If convicted, he faces a penalty of up to 20 years in federal prison and a $1 million fine on the fentanyl charge and up to 10 years and a fine up to $250,000 on the counterfeit drug charges.

Investigating agencies included Food and Drug Administration Office of Criminal Investigations, the United States Postal Inspection Service, and the Drug Enforcement Administration with the assistance of the Deerfield Police Department, the Massachusetts State Police, the Whatley Police Department, and the Northwestern District Attorney’s Anti-Crime Task Force. Assistant U.S. Attorney Chris Oakley is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

WICHITA, KAN. – A Wichita man pleaded guilty Monday and admitted he robbed three stores, U.S. Attorney Stephen McAllister said.

Willie Smith, 38, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted that in 2018 he robbed the QuikTrip store at 1532 S. Seneca. He showed the clerk what appeared to be a revolver before demanding money. Later, when investigators searched his apartment, they found a black BB gun they believe Smith used in three robberies.

At sentencing, the court also will take into account as relevant conduct two other robberies Smith committed in 2018. Smith robbed the Express Mart at 565 S. Market. During the robbery, he showed the clerk what appeared to be a revolver. Smith also robbed Pete’s Liquor at 332 W. Harry. During the robbery, he pulled out what appeared to be a revolver.

Sentencing is set for Aug. 26. He faces up to 20 years in federal prison and a fine up to $250,000. McAllister commended the Wichita Police Department and Assistant U.S. Attorney David Lind for their work on the case.

WICHITA, KAN. – A Russian-born woman was sentenced to 84 months in federal prison today for unlawfully taking her daughter to Russia and demanding money before allowing the American father to have custody of the girl, U.S. Attorney Stephen McAllister said.

In March, a jury found Bogdana Alexandrovna Mobley, 38, guilty on one count of international parental kidnapping and two counts of attempting to extort money from the child’s father.

During trial, the prosecutor presented evidence that in April 2014 Mobley took a child of hers (identified as S.M. in court records) to Russia despite the fact the biological father, Brian Mobley, had been awarded joint custody in Sedgwick County District Court. At the time, the Mobleys had a pending divorce case before the court. The defendant did not obtain the permission of the court or Brian Mobley before going to Russia with the child. The child still has not returned to the United States.

Between April 2014 and November 2016, the defendant only permitted Brian Mobley to communicate with S.M. via cell phones and Skype applications. She told Brian Mobley that he needed to send her money in order to see the child.

McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.

KANSAS CITY, KAN. – Four defendants were charged today in an indictment alleging they “washed” $1 bills to produce counterfeit $100 bills that they passed during a shopping spree, U.S. Attorney Stephen McAllister said.

Steven Shane Escamilla, 30, Laguna Hills, Calif., Courtney Campbell, 37, Bouse, Ariz., John Sebestyen, 50, Mission Viejo, Calif., and Jonathan Washington, 33, no known address, are charged with conspiracy to commit counterfeiting. In addition, Escamilla is charged with one count of possessing counterfeit bills and one count of possessing methamphetamine; Campbell is charged with one count of possessing counterfeit bills and one count of possessing methamphetamine; Sebestyen is charged with one count of possessing counterfeit bills and one count of possessing methamphetamine and heroin; and Washington is charged with one count of possession with intent to distribute methamphetamine.

According to documents filed with the court, an employee at a hotel in Overland Park contacted police to report that the defendants were acting suspiciously. They deposited trash in containers away from their rooms that contained evidence of criminal activity.

The indictment alleges that in some cases defendants purchased goods with counterfeit cash and then returned the goods for a refund at another branch of the same store.

Upon conviction, the crimes carry the following penalties:

          Conspiracy: Up to five years in federal prison and a fine up to $250,000.

          Possessing counterfeit cash: Up to 20 years and a fine up to $250,000.

          Possession with intent to distribute methamphetamine: Not less than five years and not more than 40 years and a fine up to $4 million.

          Possessing a controlled substance: Up to a year and a fine up to $1,000.

The Overland Park Police Department and the U.S. Secret Service investigated. Assistant U.S. Attorney Leon Patton is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

WICHITA, KAN. – With Wichita’s violent crime rate significantly above the national average, U.S. Attorney Stephen McAllister announced today that the Wichita Police Department has been approved to receive special training and technical assistance from the National Public Safety Partnership.

Wichita and nine other jurisdictions are joining the partnership, which gives them access at no cost to specialized law enforcement expertise with dedicated prosecutorial resources to fight their violent crime problems.

“This program, along with Project Safe Neighborhoods, will broaden our partnership with the Wichita Police Department,” McAllister said. “We’re putting federal prosecutors on the same team with Wichita police officers.”

Over the past three years, Wichita has experienced an increase in violent crime, according to Wichita police officials. Shootings have been steadily increasing since 2014. From 2016 to 2018, the city saw a 31 percent increase in shootings.

Deputy Chief Jose Salcido cited domestic violence and methamphetamine trafficking as factors contributing to the city’s increase in violent crime. He said federal assistance will “help us dig into our own data” to devise effective strategies for reversing the trends.

“The Public Safety Partnership is a successful program that directs federal law enforcement resources to the cities where they can have the greatest impact,” Attorney General William P. Barr said. “These resources help police departments to diagnose where crime is highest—and why—and to find, arrest and prosecute criminals. Several participating cities have already seen dramatic reductions in violent crime over the past two years. As we expand this program to 10 more cities across America, we are determined to replicate that success.”

The program is a three-year commitment from the Justice Department to deliver assistance. It is not a grant program. Participating law enforcement agencies do not receive direct funding.

The 10 sites announced today are as follows:

• Anniston, Alabama
• Oxford, Alabama
• Anchorage, Alaska
• Davenport, Iowa
• Wichita, Kansas
• Baton Rouge, Louisiana
• Baltimore, Maryland
• Cleveland, Ohio
• Amarillo, Texas
• Harris County, Texas

More than 30 cities have participated in PSP. The primary participating Justice Department components include the Office of Justice Programs, Office on Violence Against Women, Office of Community Oriented Policing Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, U.S. Drug Enforcement Administration and U.S. Marshals Service.

More information about PSP can be found at: https://www.nationalpublicsafetypartnership.org

KANSAS CITY, KAN. – A Kansas man was sentenced today to four years in federal prison for helping to move 168 pounds of marijuana from one house to another to keep police from finding it, U.S. Attorney Stephen McAllister said.

Felipe Cano-Porras, 32, Kansas City, Kan., pleaded guilty to one count of conspiracy to distribute marijuana. Law enforcement had a house in the 900 block of Riverview in Kansas City, Kan., under surveillance when Cano-Porras and another man come out. In the house, investigators found 168 pounds of marijuana in suitcases, 704 grams of methamphetamine, three firearms and more than $25,000 in cash. In his plea, Cano-Porras admitted he and another moved the marijuana, the methamphetamine, the guns and the cash into the house from another residence.

McAllister commended the Drug Enforcement Administration, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.

 

KANSAS CITY, KAN. – U.S. Attorney Stephen McAllister announced today that Coffey Health System has agreed to pay the U.S. government $250,000 to settle claims that it violated the False Claims Act.

Coffey Health System (“CHS”) operates a twenty-five bed critical access hospital located in Burlington, Kan. The United States alleged that Coffey Health System falsely attested that it conducted and/or reviewed security risk analyses in accordance with requirements under a federal incentive program for the reporting periods of 2012 and 2013.

The government contended that the hospital submitted false claims to the Medicare and Medicaid Programs pursuant the Electronic Health Records (EHR) Incentive Program. The American Recovery and Reinvestment Act of 2009 established the program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) offers incentive payments to healthcare providers that adopt certified EHR technology and meet certain requirements relating to their use of the technology. To obtain the payments, providers must attest that they satisfy applicable HHS-adopted criteria, including measures for analyzing and addressing security risks to electronic health records.

“Medicare and Medicaid beneficiaries expect that providers ensure the accuracy and security of their electronic health records,” said United States Attorney Stephen McAllister. “This office remains committed to protecting the federal health programs and to hold accountable those whose conduct results in improper payments.”

Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Providers who fail to properly ensure the security of electronic health records must be held accountable.”

The settlement announced today resolves allegations in a lawsuit filed by Bashar Awad and Cynthia McKerrigan, in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action; Awad and McKerrigan will receive approximately $50,000.

This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the District of Kansas. The United States was represented by Assistant U.S. Attorney Jon Fleenor.

The case is captioned United States ex rel. Awad et al. v. Coffey Health System, 2:16-CV-03034 (D. Kan.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Joseph P. Galichia M.D., a Wichita, Kansas, cardiologist, has agreed to pay $5.8 million to resolve allegations that he and his medical group, Galichia Medical Group, P.A. (GMED), violated the False Claims Act by improperly billing federal health care programs for medically unnecessary cardiac stent procedures, the Department of Justice announced. Galichia also agreed to a three-year period of exclusion from participation in any federal health care program. The settlement relates to a lawsuit in which the United States intervened on Dec. 12, 2014.

“This settlement reflects the Department of Justice’s commitment to ensuring the safety of federal health care program beneficiaries and that taxpayer monies are properly spent,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.

“Patient safety is critically important,” said U.S. Attorney Stephen McAllister for the District of Kansas. “Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs.”

“When a physician bills the government for medically unnecessary procedures, both patients’ health and taxpayers can end up paying the price,” said Special Agent in Charge Steve Hanson of the Office of Inspector General for the U.S. Department of Health and Human Services. “OIG is excluding Dr. Galichia from participation in Medicare, Medicaid, and other federal health care programs, and we will continue to work with our partners to protect the health and welfare of Medicare beneficiaries.”  

The government contended that Galichia and GMED knowingly submitted false billings from Jan. 1, 2008, through Dec.31, 2014, for surgical procedures in which Galichia implanted coronary stents that were not medically necessary. The allegedly false billings were submitted to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program.

This is the government’s third False Claims Act settlement with Galichia and GMED. In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation. In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted claims for a higher level of service than provided, billed twice for the same services, and billed for services not provided. 

The settlement announced resolves allegations in a lawsuit filed by Aly Gadalla M.D., in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Dr. Gadalla will receive approximately $1.16 million.

The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).

The investigation was conducted by the U.S. Attorney’s Office for the District of Kansas and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG, the FBI, the Defense Health Agency on behalf of the TRICARE program, the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, and the Office of Personnel Management, Office of Inspector General.

The case is captioned United States ex rel. Gadalla v. Dr. Joseph Galichia, et al., Case No. 12-1259 (D. Kan.). The claims resolved by the settlements are allegations only and there has been no determination of liability

Joseph P. Galichia M.D., a Wichita, Kansas, cardiologist, has agreed to pay $5.8 million to resolve allegations that he and his medical group, Galichia Medical Group, P.A. (GMED), violated the False Claims Act by improperly billing federal health care programs for medically unnecessary cardiac stent procedures, the Department of Justice announced. Galichia also agreed to a three-year period of exclusion from participation in any federal health care program. The settlement relates to a lawsuit in which the United States intervened on Dec. 12, 2014.

“This settlement reflects the Department of Justice’s commitment to ensuring the safety of federal health care program beneficiaries and that taxpayer monies are properly spent,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.

“Patient safety is critically important,” said U.S. Attorney Stephen McAllister for the District of Kansas. “Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs.”

“When a physician bills the government for medically unnecessary procedures, both patients’ health and taxpayers can end up paying the price,” said Special Agent in Charge Steve Hanson of the Office of Inspector General for the U.S. Department of Health and Human Services. “OIG is excluding Dr. Galichia from participation in Medicare, Medicaid, and other federal health care programs, and we will continue to work with our partners to protect the health and welfare of Medicare beneficiaries.”  

The government contended that Galichia and GMED knowingly submitted false billings from Jan. 1, 2008, through Dec.31, 2014, for surgical procedures in which Galichia implanted coronary stents that were not medically necessary. The allegedly false billings were submitted to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program.

This is the government’s third False Claims Act settlement with Galichia and GMED. In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation. In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted claims for a higher level of service than provided, billed twice for the same services, and billed for services not provided. 

The settlement announced resolves allegations in a lawsuit filed by Aly Gadalla M.D., in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Dr. Gadalla will receive approximately $1.16 million.

The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).

The investigation was conducted by the U.S. Attorney’s Office for the District of Kansas and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG, the FBI, the Defense Health Agency on behalf of the TRICARE program, the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, and the Office of Personnel Management, Office of Inspector General.

The case is captioned United States ex rel. Gadalla v. Dr. Joseph Galichia, et al., Case No. 12-1259 (D. Kan.). The claims resolved by the settlements are allegations only and there has been no determination of liability.

TOPEKA, KAN. – A Topeka man is facing federal charges after he imported devices from China that for $19 a piece can turn a Glock pistol into a fully automatic machine gun, U.S. Attorney Stephen McAllister said today.

The defendant was indicted yesterday in U.S. District Court in Topeka.

Jacob Gragg, 33, Topeka, Kan., is charged in a four-count indictment with one count of unlawful possession of a machine gun, one count of unlawful possession of an unregistered machinegun, one count of unlawful possession of an explosive and one count of possession with intent to distribute marijuana.

The indictment alleges investigators seized seven so-called “Glock switches” and half a pound of Tannerite, which is a binary explosive, from Gragg. Gragg bought the Glock switches from a company in Shenzhen, Gaundong Province, China. On a website, the company advertised the “Glock Auto Switch,” saying the product would convert all models of Glock pistols to “Full Auto.” The device operates by applying force to the trigger bar to prevent it from limiting the weapon to firing only one round each time the trigger is depressed.

The indictment alleges Gragg was prohibited from possessing the explosive because he had prior felony convictions in Shawnee County District Court and Morris County District Court.

If convicted, he faces the following penalties:

          Unlawful possession of a machine gun (count one) and unlawful possession of an explosive by a prohibited person (count three): Up to 10 years in federal prison and a fine up to $250,000

          Possession of an unregistered machine gun (count two): Up to 10 years and a fine up to $10,000.

          Possession with intent to distribute marijuana: Up to five years and a fine up to $250,000.

Investigating agencies included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Topeka Police Department and the Shawnee County Sheriff’s Office. Assistant U.S. Attorney Skip Jacobs is prosecuting.

 

OTHER INDICTMENTs

Omar Urista, 22, Topeka, Kan., is charged with one count of carjacking. The crime is alleged to have occurred April 4, 2019.

The indictment alleges Urista used force to steal a 2003 Chevrolet Tahoe from its owner.

If convicted, he faces up to 15 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

TOPEKA, KAN. - The owners of the Plainville Livestock Commission in Rooks County are charged with carrying out a check kiting scheme that cost banks millions of dollars, U.S. Attorney Stephen McAllister said today.

A grand jury in Topeka returned the indictment Wednesday.

Tyler Gillum, 47, and his wife, Camden Gillum, 50, both of Plainville, Kan., are charged with 31 counts of bank fraud, one count of making a false statement to the Small Business Administration in an application for a $1.5 million loan, and one count of making a false statement to Almena State Bank in an application for a $500,000 line of credit.

The indictment alleges the Gillums defrauded Almena State Bank in Almena, Kan., Landmark Bank in Manhattan, Kan., Colorado East Bank and Trust in Lamar, Colo., Astra Bank in Scandia, Kan., TBK Bank in Dallas, Guaranty State Bank in Beloit and The Bank in Oberlin, Kan.

The indictment alleges investigators examined unfunded checks and wire transfers totaling more $2 billion sent by Tyler Gillum as part of the scheme. That included 409 wire transfers and 7,584 checks. Tyler Gillum, formerly a loan officer for Montezuma State Bank, owned and operated with his wife Plainville Livestock Commission. In advertisements for the business, they said: “The sale barn facility was first established in 1950 and is situated in the heart of Cow-Calf Country. We pride ourselves in offering individualized attention to marketing your livestock.”

The indictment defines check kiting as a form of check fraud that takes advantage of the time between presentment of a check and the actual receipt of funds (“the float”) to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks to clear that otherwise would bounce.

Investigating agencies included the U.S. Department of Agriculture – Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation – Officer of Inspector General, the Federal Housing Finance Agency – Office of Inspector General and the U.S. Small Business Administration – Office of Inspector General. Assistant U.S. Attorney Rich Hathaway is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

WICHITA, KAN. – Zoos in Topeka and Wichita are receiving tiger and lion pelts that federal agents seized from wildlife traffickers, U.S. Attorney Stephen McAllister said today.

McAllister said his office donated the pelts to the Topeka Zoo and the Sedgwick County Zoo. The pelts were seized by agents of the U.S. Fish and Wildlife Service who were enforcing federal laws aimed at protecting endangered animals and disrupting the global black market for hides and other parts of protected wildlife.

“Poachers, wildlife smugglers and black market merchants are stealing our last chance to protect and preserve creatures of awesome strength and beauty,” McAllister said. “Once these animals go, they will be gone forever. They are a precious natural resource that the federal government protects, including by criminal prosecution of illegal traffickers.”

The Department of Justice’s Environment and Natural Resources Division (ENRD), together with United States Attorneys’ Offices across the country, is responsible for prosecuting international wildlife trafficking crimes, primarily under the Endangered Species Act (ESA) and the Lacey Act, as well as crimes related to wildlife trafficking, such as smuggling, money laundering, and criminal conspiracy.

Wildlife items forfeited or abandoned to the U.S. Fish and Wildlife Service are stored in a 22,000-square-foot office and warehouse located northeast of Denver that is called the National Wildlife Repository. Many of the items are donated to educational facilities and nonprofit organizations to aid in teaching about endangered species.

McAllister said the tiger pelts came from the wildlife depository. Fish and Wildlife Service agents used some of them in a sting operation in Wichita in 2018. A Wichita man pleaded guilty to making a deal to pay $8,000 to have two tiger pelts delivered to him. Agents retrieved the tiger pelts and seized a lion pelt from his home when they arrested him.

McAllister said the Justice Department estimates the international illegal trade in wildlife generates as much as $23 billion annually. In Kansas in recent years, federal agents have investigated wildlife trafficking cases including deer and elk that had been poached by guides and hunters, eagle feathers that were being unlawfully sold and Asian leopard cats unlawfully imported to Kansas. Federal prosecutors across the country also have pursued cases involving native turtles being exported to other countries.

For more information, see https://www.fws.gov/wildliferepository/ and https://www.justice.gov/enrd/wildlife-trafficking and https://www.fws.gov/eaglerepository/ .

TOPEKA, KAN. – A Topeka man pleaded guilty Tuesday to cyberstalking and distributing child pornography, U.S. Attorney Stephen McAllister said.

Blake Adam Austin, 35, Topeka, Kan., pleaded guilty to one count of cyberstalking, one count of possessing child pornography and one count of distributing child pornography.

The investigation began when a middle school teacher in Topeka reported receiving emails from males who wanted to meet her. The males were responding to a Craigslist ad in which someone used the victim’s identity to post sexual content. The problem continued for years until an investigator identified an account Austin was using to post sexual content along with the victim’s contact information.

The victim recognized Austin as someone she had worked with at a coffee shop. He had attempted to initiate a relationship but she had not been interested.

Investigators learned Austin used images of an adult porn star and the victim’s contact information to post ads. He also used images of the victim and her contact information to place half a dozen ads on Craigslist.

On Austin’s laptop, investigators found images of him having sex with a 17-year-old girl. Investigators also learned that Austin uploaded sexually explicit photos of a girl under 15 years old on Skype.

Sentencing is set for Aug. 20. He faces a penalty of up to five years in federal prison on the cyberstalking charge, up to 10 years on the possession charge and not less than five years on the distribution charge. McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.

 

WICHITA, KAN. – A Reno County man who led troopers on a 100-mph chase pleaded guilty Monday to a federal firearm charge, U.S. Attorney Stephen McAllister said.

Codey Elsasser, 26, Arlington, Kan., pleaded guilty to possessing a short-barreled rifle that was not registered as required by federal law. Elsasser was driving 88 mph in a 65 mph zone when a Kansas Highway Patrol trooper tried to stop him. Elsasser fled, reaching a speed of 100 mph as he drove from Barton County to Rice County before stopping.

In the car, troopers found a .223 caliber rifle with a barrel length of 10 and 5/8 inches, a 9 mm pistol, a 12 gauge shotgun, a bulletproof vest and parts of a homemade silencer. Elsasser was a convicted felon and was prohibited from having firearms. He admitted he smoked methamphetamine the morning of the arrest.

Sentencing is set for July 29. The parties have agreed to recommend a sentence in a range of 63 to 78 months in federal prison.

McAllister commended the Kansas Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney David Lind for their work on the case.

WICHITA, KAN. – A man and woman from Great Bend have been charged in a 10-count indictment alleging possession or sale of cocaine, fentanyl, LSD, heroin, methamphetamine and marijuana, U.S. Attorney Stephen McAllister said.

Iban Martinez-Enriquez, 21, Great Bend, Kan., and Kennedy Christine Beakey, 19, Great Bend, Kan., are charged with one count possession with intent to distribute LSD (count six), one count of possession with intent to distribute methamphetamine (count seven), one count of possession with intent to distribute cocaine (count eight), one count of possession with intent to distribute heroin (count nine) and one count of possession with intent to distribute marijuana (count 10). In addition, Martinez-Enriquez is charged with two counts of distributing cocaine (counts one and two), one count of distributing fentanyl (count three), one count of distributing heroin (count four) and one count of distributing methamphetamine (count five).

The crimes are alleged to have occurred in September and October 2018 in Finney and Barton counties.

The indictment seeks the forfeiture of a .22 caliber rifle and $21,915 in cash.

Upon conviction, the crimes carry the following penalties:

Counts one through five and eight through 10: Up to 20 years in federal prison and a fine up to $1 million.

Counts six and seven: Not less than 10 years and a fine up to $10 million.

Investigators included the Finney County Sheriff, the Barton County Sheriff, the Great Bend Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ryan McCarty is prosecuting.

 

OTHER INDICTMENTS

Heath Wagoner, 35, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred March 14, 2018, in Sedgwick County, Kan.

If convicted, he faces a penalty of up to 20 years and a fine up to $1 million on the methamphetamine charge, not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking and up to 10 years and a fine up to $250,000 on the other firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

 

 Michael Buddenhagen, 53, Wichita, Kan., and Sarah Venturella, 36, Wichita, Kan., are charged with one count of possession with intent to distribute methamphetamine. In addition, Buddenhagen is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred Jan. 31, 2019, in Greenwood County, Kan.

Upon conviction, the crimes carry the following penalties:

          Possession with intent to distribute methamphetamine: Up to 20 years in federal prison and a fine up to $1 million.

          Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.

          Possession of a firearm by a felon: Up to 10 years and a fine up to $250,000.

The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

 

Douglas Amaya-Merino, 35, a citizen of El Salvador, is charged with unlawfully re-entering the United States after being deported. He was found March 7, 2019, in Saline County, Kan.

If convicted, he faces up to two years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

 

Lorenzo Roque-Ortega, 29, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found May 14, 2019, in Sedgwick County, Kan.

If convicted, he faces up to two years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

WICHITA, KAN. – A California man was sentenced today to 10 years in federal prison for smuggling almost 30 pounds of methamphetamine into Kansas, U.S. Attorney Stephen McAllister said.

Christian Delgado-Lopez, 30, Dana Point, Calif., pleaded guilty to one count of possession with intent to distribute methamphetamine. According to court documents, Delgado-Lopez was driving a rented Ford F-150 when the Kansas Highway Patrol stopped him on U.S. Highway 54 in Meade County, Kan. Delgado-Lopez and his passenger told the trooper they were on their way to Wichita.

A search of the vehicle turned up the methamphetamine, which was hidden in a spare tire.

McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.

KANSAS CITY, KAN. – An Overland Park man today admitted he collected more than 44,000 images of child porn, some of which were shared with other computer users, U.S. Attorney Stephen McAllister said.

Robert A. Weick, 32, Overland Park, Kan., pleaded guilty to one count of distributing child pornography. Weick came under investigation when a task force officer from the FBI used a file-sharing program to download child pornography from Weick’s computer. When investigators served a search warrant at Weick’s home, they discovered approximately 44,000 images and 500 videos containing child pornography.

Sentencing is set for Sept. 3. Both parties have agreed to recommend a sentence of 100 months in federal prison and $28,000 in restitution to victims who have been identified by the National Center for Missing and Exploited Children. McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.

KANSAS CITY, KAN. – A Wichita man pleaded guilty Monday to committing a liquor store robbery during which a clerk shot him in the leg, U.S. Attorney Stephen McAllister said.

Rayquan Hill, 19, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted he and a co-defendant robbed F & K Liquor at 902 S. Woodlawn in Wichita. A store clerk shot Hill in the leg during the robbery. Hill was arrested at the scene. The co-defendant was arrested later that day at work.

Co-defendant Jamaryus Moore, 20, Wichita, Kan. is awaiting sentencing.

Hill is set for sentencing Aug. 5. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000.

McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.

KANSAS CITY, KAN. – A Leavenworth man was sentenced Monday to 121 months in federal prison for receiving and distributing child pornography, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $6,500 in restitution.

Pedro Zamora, 36, Leavenworth, Kan., pleaded guilty to one count of receipt and distribution of child pornography. In his plea, he admitted that investigators found 127 videos and 1,900 images containing child pornography on a computer in his home. He used file sharing programs to collect and distribute the images. Zamora told investigators he began searching for child pornography on the internet when he was in middle school.

McAllister commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.