District of Kansas

WICHITA, KAN. – A Mexican man pleaded guilty Monday to laundering more than $4.7 million in drug funds through his bank accounts in Kansas and elsewhere, U.S. Attorney Barry Grissom said.

Franz Wiebe Rempel, 44, Cuauhtemoc, Chihuahua, Mexico, pleaded guilty in U.S. District Court in Wichita to one count of money laundering. In his plea, he admitted that from 2009 through July 30, 2013, he laundered drug funds through bank accounts at the Bank of America in Wichita, as well as accounts at Wells Fargo and J.P. Morgan Chase.

In his plea, he admitted he provided his bank account numbers so that another conspirator could distribute the information to others. Rempel had an understanding with the conspirator that third parties would deposit cash into his bank accounts. The deposits would be less than $10,000 in an attempt to avoid federal currency reporting requirements. Once Rempel received the funds, he would transfer or move the money through the U.S. financial system at the other conspirator’s direction. Rempel crossed the border from his home in Mexico almost on a weekly basis in order to move funds. Ultimately, most of the money wound up in the other conspirator’s hands.

Rempel’s accounts received funds deposited from Kansas City, Kan.; Kansas City, Mo.; Oklahoma City; Des Moines; Amarillo, Texas; El Paso, Texas; Knoxville, Tenn., Nashville, Tenn., Memphis, Tenn.; Charlotte, N.C., Atlanta, Ga., and Albuquerque, N.M. Rempel did not know the identities of the people making the deposits but he knew the funds were being transferred for the purpose of paying for drugs.

Sentencing is set for Aug. 17. He faces a maximum penalty of 20 years and a fine up to $500,000. Grissom commended the Drug Enforcement Administration and the Internal Revenue Service for their work on the case.

KANSAS CITY, KAN. – A Kansas City, Kan., tax preparer has pleaded guilty to preparing false tax returns, U.S. Attorney Barry Grissom.

Ahferom Goitom, 35, Kansas City, Kan., pleaded guilty Wednesday to one count of preparing false tax returns. In his plea, he admitted that the crime occurred while he was working as a tax return preparer for Instant Tax Services in Kansas City, Kan. He prepared tax returns for clients that included false deductions and credits – often unbeknownst to his clients. He fabricated business expenses, inflated charitable deductions and exaggerated child care expenses. In addition, he told an IRS agent working undercover that the agent should find someone to claim as a dependent in order to inflate his refund.

Sentencing will be scheduled at a later date. The parties are recommending probation of 36 months and restitution of $101,157. The Internal Revenue Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

WICHITA, KAN. – A federal grand jury Wednesday indicted a Wichita man in a 2013 bank robbery, U.S. Attorney Barry Grissom said.

Frederick Aaron Cunningham, 45, who is in custody in Wisconsin on unrelated charges, was charged with one count of bank robbery. The indictment alleges that on Oct. 28, 2013, Cunningham robbed the Intrust Bank branch inside the Dillons store at 3211 S. Seneca.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.

 

OTHER FEDERAL GRAND JURY INDICTMENTS

Dontreal D. Banks, 28, Wichita, Kan, is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of ammunition following a felony conviction. The crimes are alleged to have occurred Feb. 23, 2015, in Sedgwick County, Kan.

If convicted, a maximum penalty of 10 years and a fine up to $250,000 on each count. The Wichita Police Department and the Kansas Department of Corrections investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.

Stephen Barnhart, 49, Wichita, Kan., is charged with one count of attempted manufacture of methamphetamine, two counts of possession of materials used in the manufacture of methamphetamine, one count of possession and distribution of chemicals used to manufacture methamphetamine, one count of possession with intent to distribute cocaine, three counts of unlawful possession of a firearm in furtherance of drug trafficking, five counts of unlawful possession of a firearm and ammunition by a user of controlled substances, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in September 2011 and December 2014 in Sedgwick County, Kan.

Upon conviction, the crimes carry the following penalties:

          Attempted manufacture of methamphetamine: A maximum penalty of 20 years and a fine up to $250,000.

          Possession of materials used to manufacture methamphetamine: A maximum penalty of 10 years and a fine up to $250,000 on each county.

          Possession and distribution of chemicals used to manufacture methamphetamine: A maximum penalty of 10 years and a fine up to $250,000.

          Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $1 million.

          Possession of a firearm in furtherance of drug trafficking: A maximum penalty of five years (consecutive) and a fine up to $250,000 on each count.

          Unlawful possession of a firearm by user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000 on each count.

          Possession with intent to distribute methamphetamine: Not less than five years and not more than 40 years and a fine up to $2 million.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

Luis Perez-Morales, 32, Las Vegas, Nevada, is charged with one count of possession with intent to distribute methamphetamine and one count of traveling from Nevada to Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred May 18, 201 in Thomas County, Kan.

If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $500,000 on the possession with intent to distribute charge, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

Sergio Tapia-Martinez, 41, Emporia, Kan., is charged with unlawfully re-entering the United States after having been convicted of an aggravated felony and deported. He was found May 21, 2015, in Lyon County, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement and the Kansas Department of Revenue investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Emmanuel Rodriguez-Torres, 30, a citizen of Mexico, is charged with assaulting an employee of the Department of Homeland Security in the performance of his duties. The crime is alleged to have occurred May 6, 2015, in Barton County, Kan.

If convicted, he faces a maximum penalty of eight years in federal prison and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Augustine Diego Mateo-Gonzalez, 37, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found May 8, 2015, in Dodge City, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Juan J. Martinez, 54, Dodge City, Kan., is charged with one count of possession with intent to distribute approximately 10 pounds of methamphetamine. Co-defendant Oscar Natividad Pena-Cano, 47, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. They were arrested April 21, 2015, in Dodge City, Kan.

If convicted Martinez faces a maximum penalty of 20 years in federal prison and a fine up to $1 million. Pena-Cano faces a maximum penalty of two years and a fine up to $250,000. The Ford County Sheriff’s Department, the Wichita Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.

Rafael Reyes, 23, Wichita, Kan., is charged with one count of unlawful possession of a sawed off shotgun and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred May 15, 2014, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $10,000 on the first count and a maximum penalty of 10 years and a fine up to $250,000 on the second count. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.

Shawn D. McCollum, Jr., 28, Claflin, Kan., is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Sept. 19, 2014, in Lyons, Kan.

If convicted, he faces a penalty of not less than five years and a fine up to $250,000 on the firearm charge, and a penalty of not less than five years and a fine up to $2 million on the drug charge. The Lyons, Kan., Police Department investigated. Assistant U.S. Attorney Matt Treaster 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 Texas woman was sentenced Tuesday to 60 months in federal prison for pretending to be pregnant and defrauding a Kansas couple who wanted to adopt her unborn twins, U.S. Attorney Barry Grissom said.

Chrystal Marie Rippey, 35, Marshall, Texas, pleaded guilty to two counts of wire fraud. In her plea, she admitted she defrauded a couple in Shawnee, Kan. On Aug. 8, 2011, the couple transferred $22,225 to an escrow account in Temecula, Calif., as part of their plan to adopt children from Rippey. On Aug. 25, 2011, American Adoptions in Overland Park, Kan., sent a birth mother packet to Rippey in Temecula California.

According to court records, both transactions were based on false statements by Rippey that she was pregnant and wanted to put her unborn twins up for adoption. The $22,225 was to pay for Rippey’s living expenses.                                                       

Grissom commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.

KANSAS CITY, KAN. – Four people pleaded guilty Wednesday to taking part in a real estate fraud scheme in connection with the development of Indian Ridge Resort, a resort community located near Branson, Mo.

The following defendants pleaded guilty:

David P. Drake, 56, Lone Tree, Colo., one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.

Donald D. Snider, Jr., 55, Littleton, Colo., one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.

Vickie A. Hall, 63, Lone Tree, Colo., one count of concealing a felony (misprision).

Heather A. Gibbs, 53, Littleton, Colo., one count of concealing a felony (misprision).

Drake and Snider were partners in Western Sites Services, a company that was engaged in developing Indian Ridge Resort. They borrowed money for the project from three banks, one of which was Columbian Bank and Trust in Topeka, Kan. In their pleas, they admitted they and other conspirators made false representations to Columbian Bank in order to obtain loan funds.

Vickie Hall was the wife of David Drake. Heather Gibbs was the wife of Donald Snider and a 2 percent owner of Western Site Services. In her plea, Gibbs admitted she knew invoices submitted to the bank included overhead and profit in the line item costs in violations of the terms of the loan agreement. Hall owned a company called Colorado Modular Home Finders Service, LLC. In her plea she admitted she helped to conceal Drake and Snider’s felonies by allowing her company, Colorado Modular Home Finders Services, LLC, to be used to withdraw home deposits from Columbia Bank.

Sentencing hearings will be set for a later date. Both parties have agreed to recommend five-year prison terms for Drake and Snider, and three years on probation for Hall and Gibbs.

Grissom commended the Federal Deposit Insurance Corporation, the Internal Revenue Service, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.

KANSAS CITY, KAN. – A California man pleaded guilty Thursday in federal court in Kansas to operating an Internet fraud scheme that cost more than 200 victims a total of more than $1.6 million, U.S. Attorney Barry Grissom said.

Anthony Renfrow, 57, Folsom, Calif., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted he made fraudulent claims to entice people to pay to become “autosurf investors” with 14DailyPlus.com.

Investors paid a membership fee and were promised a 14 percent daily return on their money for clicking on advertisers’ Web sites for a certain period of time each day. To achieve that rate of return, 14DailyPlus.com purportedly pooled the capital investments of members and purchased advertising units on the Internet with Fortune-500 type companies.

Renfrow held regularly scheduled conference calls with investors via telephone and Internet to lull them into believing the program was legitimate and returns on investments were being paid as promised. In truth, there was no investment vehicle and the promise of a 14 percent daily return was completely unrealistic.

Renfrow founded 14DailyPlus.com in March 2006. Co-defendant William Fox, 46, formerly of Olathe, Kan., allegedly was a promoter and recruiter for 14DailyPlus.com in the Kansas City metropolitan area. He is awaiting trial.

Sentencing will be set for a later date. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service – Criminal Investigation, the U.S. Postal Inspection Service, the Johnson County District Attorney’s Office, the California Attorney General’s Office and Assistant U.S. Attorney Scott Rask for their work on the case.

KANSAS CITY, KAN. – U.S. Attorney Barry Grissom will take part in a Youth and Law Enforcement Forum Wednesday in Kansas City.

“Every young person in America should have the opportunity to grow, succeed and contribute to their community,” Grissom said. “Building trust between law enforcement and the community is one way to help ensure that all our young people can reach their full potential.”

Grissom’s office is helping to sponsor the event, which was organized by the FBI, with support from the U.S. Attorney’s Office for the Western District of Missouri, the Kansas City, Mo., and Kansas City, Kan., police departments and the FBI Citizens Academy Alumni Association. The forum is open to high school and college age youth from Kansas and Missouri. It will provide an opportunity for teens to talk openly about challenges and obstacles facing law enforcement and the teen community and how they can work together.

The forum will be kicked off by the Kansas City Chiefs General Manager John Dorsey at 5:30 p.m., (check-in begins at 5:00 p.m.) Wednesday, May 20. Following a period of questions and answers with leaders of area law enforcement, attendees will have the opportunity to interact with law enforcement and learn first-hand about law enforcement capabilities, tools and potential career opportunities.

The first portion of the program from 5 p.m. to 7 p.m. is closed to the media to encourage an open exchange of dialogue between the attendees and law enforcement. Media outlets are invited to attend the program at 7 p.m. until the program’s conclusion at 8 p.m. at the Robert Mohart Center located at 3200 Wayne Ave., Kansas City, MO.  

For more information on the event, contact FBI Public Affairs Officer Bridget Patton at 816-512-8833.

WICHITA, KAN. – A federal jury Thursday convicted a Hillsboro man on federal firearms charges, U.S. Attorney Barry Grissom said.

David G. Nicholas, Jr., 44, Hillsboro, Kan., was convicted on three counts of unlawful possession of a firearm following a felony conviction.

During trial, prosecutors presented evidence that Nicholas was a parole absconder in October 2013 when the U.S. Marshals Service arrested him in Marion County, Kan. At the time, he possessed a .22-caliber handgun and a .30-06 caliber rifle and ammunition.

Sentencing is set for Aug. 6. He faces a maximum penalty of not less than 15 years in federal prison a fine up to $250,000 on each count. Grissom commended the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Jason Hart for their work on the case.

TOPEKA, KAN. – A Lawrence man has been charged with devising a simple – and illegal – scheme that allowed him to collect more than $143,000 in credit card rewards, U.S. Attorney Barry Grissom said today.

Jawad Obaid, 31, Lawrence, Kan., was indicted Wednesday on ten counts of wire fraud. The indictment alleges he obtained credit cards with Capital One, Chase and U.S. Bank and accessed their rewards program Web sites for the purpose of making Internet purchases from businesses selling goods and services on the sites. In that manner, he generated tens of thousands of reward points from the credit card companies. He cancelled the purchases within 24 hours and used the reward points from the cancelled purchases to redeem cash awards in the form of checks and direct deposits to his accounts.

If convicted, he faces a maximum penalty 30 years in federal prison and a fine up to $250,000 on each count. Homeland Security Investigations investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

 

OTHER FEDERAL GRAND JURY INDICTMENTS

John Michael Devosha, 25, who is in federal custody, was charged in a superseding indictment with two counts of carjacking, one count of unlawful possession of a firearm and two counts of using a firearm during a carjacking. The crimes are alleged to have occurred Oct. 22 in Kansas City, Kan., and Oct. 25, 2013, on the Prairie Band Potawatomi Reservation.

If convicted, he faces a maximum penalty of 15 years in federal prison and a fine up to $250,000 on each carjacking count, a maximum penalty of 10 years and a fine up to $250,000 on the possession charge, and a penalty of not less than five years on each of the other two counts. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.

Tegan C. Gulley, 35, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred May 7, 2015, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of ten years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

Domingo Uriarte, Jr., 38, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 28, 2015, in Kansas City, Kan.

If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Trent Krug is prosecuting.

Ivan Joseph Soto, 27, Topeka, Kan., and Mauricio Aguilera, 24, San Bernadino, Calif, are charged with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred April 20, 2015, in Topeka, Kan.

If convicted, they face a penalty of not less than 10 years and a fine up to $10 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.

 

Jerome Birdsong, 33, Kansas City, Kan., is charged with one count of conspiracy to possess with intent to distribute methamphetamine, one count of maintaining a residence at 2942 N. 47th Terrance in Kansas City, Kan., in furtherance of drug trafficking, and one count of unlawful possession of ammunition following a felony conviction. The crimes are alleged to have occurred in 2013 in Kansas City, Kan.

If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the conspiracy charge, a maximum penalty of 20 years and a fine up to $500,000 on the charge of maintaining a residence for drug trafficking and a maximum penalty of 10 years and a fine up to $250,000 on the ammunition charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic 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 Butler county man pleaded guilty Thursday to a federal charge of stealing more than $1.2 million from Presbyterian Manors of Mid-America, a Wichita-based company that owns assisted living centers in Kansas and Missouri, U.S. Attorney Barry Grissom said.

In Kansas, the company has facilities in Wichita, Topeka, Kansas City, Olathe, Lawrence, Emporia, Salina, Dodge City, Fort Scott, Parsons, Arkansas City, Newton, Sterling and Clay Center.

Brent A. Shryock, 44, Augusta, Kan., pleaded guilty to one count of mail fraud. In his plea, he admitted the crime occurred while he was employed as information systems director for the company. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.

In his plea, Shryock said he created four fictitious companies and used them to submit fraudulent invoices to PMMA. As a result, the company was defrauded out of more than $1.2 million.

Sentencing is set for Aug. 6. The parties have agreed to recommend a sentence of three years in federal prison and restitution to be determined by the judge.

Shryock’s wife and co-defendant, Lori A. Shryock, is scheduled for a change of plea hearing May 22.

Grissom commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.

KANSAS CITY, KAN. – A native of Ghana who obtained naturalized U.S. citizenship in 2004 has pleaded guilty to obtaining citizenship by fraud and faces possible deportation, U.S. Attorney Barry Grissom said Monday.

Ernest Opoku Acheampong, 44, Shawnee, Kan., entered a guilty plea Monday before U.S. District Judge Julie A. Robinson and is scheduled to be sentenced July 29. Because he pleaded guilty to making a false statement on his application for U.S. citizenship and ultimately became a naturalized U.S. citizen, federal law requires that his citizenship be revoked, Grissom said.

“Not only will his certificate of naturalization be cancelled, he will be placed in removal proceedings,” Grissom said. “And, he faces possible incarceration in the criminal case. People who make false statements in their attempt to become naturalized U.S. citizens undermine the process and dishonor those seeking citizenship honestly.”

During court proceedings Monday, Acheampong admitted that he first entered the United States in 1994, claiming to be a “Michael Smith” from Libya. He was denied entry, but requested asylum and sought to remain in the U.S. His claims of fear of persecution were found to be unfounded and he was ordered deported, but Acheampong never surrendered himself for deportation.

In 1996, Acheampong was able to obtain a valid entry visa under his true name and country of citizenship, Ghana, and ultimately applied for naturalized U.S. citizenship in 2004, but failed to disclose his previous entry into the United States and the prior order of deportation on his naturalization application. He was granted naturalized U.S. citizenship in September 2004, Grissom said.

However, in August 2014, when Acheampong applied for a Kansas driver’s license, officials of the Kansas Department of Revenue determined through facial recognition software employed whenever people apply for state ID cards or driver’s licenses that the defendant had previously obtained a Kansas driver’s license under the name “Michael Smith.”

Their agents then notified the Department of Homeland Security’s Citizenship and Immigration Services (CIS) and Homeland Security Investigations (HSI), who completed the investigation and documented what Acheampong had done. Acheampong was indicted in the case in October.

Grissom praised the agencies for their work on their case and Assistant U.S. Attorney Brent Anderson for his prosecution.

TOPEKA, KAN. – A federal jury has convicted a Topeka man of producing child pornography, U.S. Attorney Barry Grissom said today.

Jonathan Kearn, 40, Topeka, Kansas, was convicted Friday on one count of producing child pornography, one count of distributing child pornography and one count of possessing child pornography.

During trail, prosecutors presented evidence that the investigation began in April 2013 when Homeland Security Investigations received a report from the Queensland Police Service, Queensland, Australia. An Australian investigator had received emails from Kearn in Kansas containing child pornography Kearn had produced. The child pornography included images of a child under six years old.

Sentencing is set for Aug. 10. He faces a penalty of not less than 15 years in federal prison on the production count, not less than five years on the distribution charge, and a maximum penalty of 10 years on the possession charge. Grissom commended Homeland Security Investigations, the Topeka Police Department, the Queensland Police Service and Assistant U.S. Attorney Christine Kenney for their work on the case.

TOPEKA, KAN. – A former private in the U.S. Army stationed at Fort Riley has been indicted on charges of stealing his fellow soldiers’ identities, U.S. Attorney Barry Grissom said today.

Todd M. Newbrough was charged Wednesday with four counts of wire fraud, four counts of bank fraud, four counts of aggravated identity theft and one count of computer fraud. The crimes are alleged to have occurred at various times from 2011 to 2015 at Fort Riley, Kan.

The indictment alleges Newbrough used personal identifying information of fellow soldiers to obtain lines of credit and credit cards in their names. He got the information through his access to Leave and Earning Statements, Enlisted Record Brief and Alpha Roster records.

If convicted, he faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each wire fraud and each bank fraud count, a mandatory consecutive two years on the aggravated identity theft counts, and a maximum penalty of five years and a fine up to $250,000 on the computer fraud count. The Army Criminal Investigation Division investigated. Assistant U.S. Attorney Christine Kenney and Special Assistant U.S. Attorney Robin Graham are prosecuting.

“This is the culmination of a great deal of investigative work conducted by Special Agents from CCIU and our other law enforcement partners who were so critical to this investigation,” said Daniel Andrews, Director of the Computer Crime Investigative Unit (CCIU) for the U.S. Army

Criminal Investigation Command.

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

TOPEKA, KAN. – A federal grand jury Wednesday returned indictments against a Topeka couple accused of forcing a teenage girl into prostitution, U.S. Attorney Barry Grissom said.

Reginald E. Newman, 29, and his wife, Tiara Jade Newman, 21, both of Topeka, are charged with one count of conspiracy to commit sex trafficking of a minor, and one count of sex trafficking of a minor.

“In Kansas, law enforcement agencies on the federal, state and local levels are working together to fight human trafficking,” Grissom said.

The indictment alleges the victim was introduced to the couple on March 21, 2015, and the couple conspired through March 30, 2015, to engage her in prostitution. She voluntarily travelled with them from Topeka to Manhattan, Kan., where they planned for her to engage in commercial sex acts. The defendants posted advertisements on a commercial Web site, including one offering a “two girl special.”

The indictment alleges Reginald Newman held a gun to the victim’s head and threatened to kill her if she did not participate in a commercial sex act with a male customer. Furthermore, Reginald Newman forcefully administered an illegal narcotic to the victim.

If convicted, the defendants face a penalty of not less than 15 years on in federal prison on the sex trafficking charge and a maximum penalty of life on the conspiracy charge. Assistant U.S. Attorney Christine Kenney is prosecuting.

Grissom thanked the following agencies for their work on the investigation: The Topeka Police Department, Homeland Security Investigations, the Riley County Police Department, the Junction City Police Department, the Kansas Department of Revenue, the Fort Riley Police Department, the Ottawa Police Department, the Shawnee County District Attorney’s Office, the Pottawatomie County Attorney, the Riley County Attorney and local human trafficking victim specialists.

 

OTHER FEDERAL GRAND JURY INDICTMENTS

Monte L. Hendricks, 23, who is being held in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 31, 2014, in Shawnee County, Kan.

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

 

Brendon E. Hoskins, 24, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 3, 2015, in Shawnee County, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Duston Slinkard 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 Derby man pleaded guilty Monday to using Internet service at the church he attended to distribute child pornography, U.S. Attorney Barry Grissom said.

Delmas E. Rich, 50, Derby, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used Internet service at his church, Temple Baptist Church in Wichita, and his work, Alarm Security Specialists in Viola, Kan., because he had no Internet service at home. On Jan. 18, 2015, a Wichita police detective downloaded child pornography from Rich’s computer over the Internet using a file-sharing service.

Sentencing is set for July 20. He faces a penalty of not less than 5 years and possibly as much as 30 years and a fine up to $250,000.

Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children (ICAC) Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.

 

KANSAS CITY, KAN. – U.S. Attorney Barry Grissom Friday urged Kansas law enforcement agencies to consider applying for a new federal program to help equip officers with body cameras.

“I have traveled across Kansas and spoken to law enforcement and community leaders,” Grissom said. “I have heard from both groups that body cameras should be standard equipment. Both sides of this issue agree this is one of the best ways to build trust and to keep both the public and officers safe.”

Grissom was one of many federal law enforcement officials who urged the Justice Department to provide assistance to law enforcement agencies that adopt body cameras.

The Department of Justice Friday announced a $20 million Body-Worn Camera (BWC) Pilot Partnership Program to respond to the immediate needs of local and tribal law enforcement organizations. The investment includes $17 million in competitive grants for the purchase of body-worn cameras, $2 million for training and technical assistance and $1 million for the development of evaluation tools to study best practices. The pilot program is part of President Obama’s proposal to invest $75 million over three years to purchase 50,000 body-worn cameras for law enforcement agencies.

“This body-worn camera pilot program is a vital part of the Justice Department’s comprehensive efforts to equip law enforcement agencies throughout the country with the tools, support, and training they need to tackle the 21st century challenges we face,” said Attorney General Loretta E. Lynch.  “Body-worn cameras hold tremendous promise for enhancing transparency, promoting accountability, and advancing public safety for law enforcement officers and the communities they serve.”

Administered by the Bureau of Justice Assistance (BJA) under the Justice Department’s Office of Justice Programs (OJP), the BWC pilot program will provide support to help law enforcement agencies develop, implement and evaluate body-worn camera programs across the United States.

“Body-worn camera technology is a valuable tool for improving police-citizen relationships,” said Director Denise O’Donnell of the Bureau of Justice Assistance. “BJA is committed to helping law enforcement agencies identify the safest and most effective methods for deploying this technology and addressing factors such as privacy, archiving and legal regulations surrounding its use. BJA stands by to guide agencies through what can be a complex process toward more successful adoption of the technology.”

The Justice Department expects to provide 50 awards to law enforcement agencies, with about one-third of the grants directed toward smaller law enforcement agencies. The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment but applicants must establish a strong plan for implementation of body-worn cameras and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.

Another $2 million will fund a national BWC Training and Technical Assistance provider through a competitive process, to assist agencies developing and enhancing their BWC programs. This training and technical assistance will provide support to law enforcement agencies to support successful implementation of their body-worn camera programs.

OJP’s Bureau of Justice Statistics (BJS) will receive $1 million of the funds to collect data on body-worn camera usage through surveys of law enforcement agencies. BJS will also design data collection forms that can be used in future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.

BJA will launch a BWC Implementation Toolkit in May, designed as an online resource for stakeholders. The toolkit will focus on implementation requirements, retention issues, policy concerns, interests of prosecutors, victim and privacy advocates’ concerns, along with community engagement and funding considerations.

For additional information about the BWC Pilot Implementation Program, visit this website: http://go.usa.gov/3BtMW.

IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

KANSAS CITY, KAN. – An Olathe woman pleaded guilty Friday to fraudulently collecting more than $53,000 in benefits from Social Security, U.S. Attorney Barry Grissom said.

April M. Martinez, 37, Olathe, Kan., pleaded guilty to one count of Social Security fraud. In her plea, she admitted she first became eligible for Title II Disability Insurance Benefits in May 1998. The Social Security Administration also approved her application for Supplemental Security Income. The terms of the programs required her to report if she returned to work while receiving benefits.

From November 2007 through May 2011, Martinez intentionally failed to disclose to the Social Security Administration that she had returned to work. She worked as a Certified Nurse Aid (CNA) at the Olathe Medical Center during part of that time. As a result, she admits that she fraudulently obtained a total of $53,827 in Social Security disability benefits.

Sentencing will be set at a later time. She faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Social Security Administration’s Office of Inspector General and Special Assistant U.S. Attorneys Trey Alford and Trent Krug for their work on the case.

KANSAS CITY, KAN. – Federal drug charges have been filed against a man arrested Tuesday in Kansas City, Kan., U.S. Attorney Barry Grissom.

Domingo Uriarte,41, Los Angeles, Calif., is charged with one count of possession with intent to distribute methamphetamine. An investigator’s affidavit filed in the case alleges Uriarte had approximately 100 pounds of methamphetamine in his truck when the Kansas Highway Patrol stopped him April 28 in Kansas City, Kan., for a traffic violation.

A trooper stopped Uriarte’s Ford F650 box truck near 10th and Kansas Avenue. In a large wooden crate containing a metal lathe, investigators found 15 tightly-wrapped bundles containing approximately 100 pounds of methamphetamine. While the truck was being inspected, Uriarte attempted to flee but was quickly recaptured.

If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million. The Kansas Highway Patrol and the Kansas City, Kan. Police Department investigated. Special Assistant U.S. Attorney Trent Krug 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 former chief of the Bel Aire Police Department and a former officer were indicted Tuesday on federal firearms charges. The indictment alleges they conspired to buy firearms at a discount by claiming the weapons were the property of the police department and would be used for law enforcement purposes, U.S. Attorney Barry Grissom said.

Former police chief John R. Daily, 62, Haysville, Kan., and Ricky L. Swanson, 39, Wichita, are the third and fourth defendants charged in the case. Both of them are charged with one count of wire fraud and one count of mail fraud.

The indictment alleges Daily, who was chief from May 2006 to December 2013, signed paperwork for the purchase of three Sig Sauer Model 716 Patrol, 7.62 mm rifles, falsely stating that the military style weapons were being purchased for use by the police department and would not be sold. In fact, the rifles were not approved for officers to carry on duty. By misrepresenting the rifles as police department property, the defendants were able to take advantage of special pricing and tax exemptions.

The indictment alleges Swanson, who worked as an officer from November 2006 to December 2013, ignored an interim police chief’s directions to cancel the order. Instead he directed two of the rifles to be delivered to another location so he could take possession. He kept one of the rifles and sold the other one.

Also charged in the case are Nathan A. Mavia, 26, Wichita, Kan., and Robert McCaslin, 41, Wichita, Kan.

If convicted, Daily and Swanson face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sedgwick County Sheriff’s Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

        

OTHER FEDERAL GRAND JURY INDICTMENTS

 

Byron Cadavid, 30, Goddard, Kan., Robby Alan Murphy, 34, Wichita, Kan., and Norma Garcia-Cadavid, 30, Wichita, Kan., are charged with a firearm violation. The crime is alleged to have occurred April 9, 2015, in Sedgwick County, Kan.

If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Sedgwick County Sheriff’s Office investigated. Assistant U.S. David Lind is prosecuting.

 

Ronald B. Zolman, 49, Little River, Kan., is charged with one count of unlawful possession of a firearm by a user of controlled substances and one count of growing marijuana plants. The crimes are alleged to have occurred Feb. 9, 2015, in Lyons, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the firearm charge; and a penalty of not less than five years and not more than 40 years and a fine up to $2 million on the drug charge. The Rice County Sheriff’s Office investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

Gerardo Ramirez-Cigala, 47, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found April 20, 2015, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Mauro Humberto Sanchez-Vasquez, 36, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found April 18, 2015, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Juan Salzar-Alvarenga, 30, a citizen of El Salvador, is charged with one count of unlawfully re-entering the United States after being deported, and one count of transporting another unlawful alien within the United States. The crimes are alleged to have occurred April 22, 2015, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on the transportation charge, and a maximum penalty of two years and a fine up to $250,000 on the other count. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Jorge Alberto Rodriguez-Vargas, 27, a citizen of Honduras, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found April 22, 2015, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson 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 law school graduate who operated a non-profit business has been sentenced to 20 years in federal prison for conspiring to launder drug money, U.S. Attorney Barry Grissom said.

Mendy Read-Forbes, 40, Platte City, Mo., was sentenced Thursday in U.S. District Court in Kansas City, Kan. She pleaded guilty to one count of conspiracy. In her plea, she admitted that in March 2012 she began meeting with an agent posing as a drug dealer. Read-Forbes, a law school graduate who was not licensed to practice law, operated Forbes & Newhard Credit Solutions, Inc., a nonprofit corporation registered in Missouri to provide educational and social welfare services.

The agent told Read-Forbes he had assets to conceal from the sale of marijuana. She boasted she could use her legal training and her connections with federal attorneys and law enforcement officers to help him launder the money. She told the agent she would launder his cash by running it through her business. She said a lot of her customers paid in cash. So it would not be suspicious for her to be doing transactions involving cash. The plan also involved her listing the agent as an employee of her business and putting him on her company’s board of directors. As part of the scheme, she created a fictitious company called Maximus Lawn Care LLC.

Over the course of the investigation she laundered a total of more than $200,000 in purported drug funds. She also agreed to invest $40,000 of her money with the agent for the purchase of marijuana.

Co-defendants are:

Ronald E. Partee, who was sentenced to five years.

Laura Shoop, who is awaiting sentencing.

Grissom commended the Johnson County Sheriff’s Department, the Kansas Bureau of Investigation, the U.S. Secret Service, the Internal Revenue Service, the Department of Housing and Urban Development, Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney Jabari Wamble for their work on the case.

 

TOPEKA, KAN. - A Topeka man has been sentenced to 76 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said today.

James A. Greer, 43, Topeka, Kan., was sentenced Tuesday in U.S. District Court in Topeka. He pleaded guilty to one count of distributing child pornography. In his plea, he admitted that on March 15, 2012, an officer working with an FBI task force in Kansas City, Mo., used the Internet to download child pornography from Greer’s computer in Topeka.

A forensic exam of Greer’s electronic devices revealed approximately 900 image files and 290 video files containing child pornography.

Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.

 

WICHITA, KAN. - A Wichita man was sentenced Wednesday for robbing a bank that he robbed once before eight years ago, U.S. Attorney Barry Grissom said.

Mark Finnigin, 52, Wichita, Kan., was sentenced to 63 months in federal prison. He pleaded guilty to one count of bank robbery. In his plea, he admitted that on July 22, 2014, he robbed Emprise Bank, 2323 S. Hydraulic, in Wichita, Kan. He entered the bank about 9:40 a.m. and demanded a clerk give him $10,000. The clerk put some cash on the counter. Before she could finish, Finnigin took the money and fled the bank. From a nearby store, a surveillance camera recorded him getting in a minivan.

In 2007, he pleaded guilty to robbing the same bank. He was sentenced to 51 months in that case.

Grissom commended the Wichita Police Department, the FBI and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case

WICHITA, KAN. -  A federal jury today convicted a Cherryvale, Kan., man on child pornography charges, U.S. Attorney Barry Grissom said.

Daniel Hosier, 35, Cherryvale, Kan., was convicted on one count of possession of child pornography and one count of distribution of child pornography.

During trial, prosecutors presented evidence that on March 28, 2013, Hosier emailed images of child pornography on Yahoo. They also presented evidence that on July 18, 2013, he possessed child pornography on laptop computers and on a smartphone.

Sentencing is set for July 13. He faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Grissom commended the Montgomery County Sheriff’s Office, the FBI investigated and Assistant U.S. Attorney Jason Hart for their work on the case.

TOPEKA, KAN. - A Topeka man was sentenced Monday to a month in federal prison and ordered to pay $38,000 in restitution to the U.S. Dept. of Agriculture, U.S. Attorney Barry Grissom said.

Terry Gene Hummer, 64, Topeka, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted he obtained loans from USDA Rural Development for developing housing in rural areas. He provided false information to Rural Development representing there were substantial funds on deposit in reserve accounts when in fact he had converted most of those funds for his own use. In one instance in 2009, he made false representations that a reserve account contained $29,526 when in fact there was only 69 cents in the account.

Grissom comended the U.S. Department of Agriculture – Office of Inspector General, and Assistant U.S. Attorney Rich Hathaway for their work on the case.

TOPEKA, KAN. – The former president of a bank in Plains, Kan., has been indicted along with two customers of the bank on federal money laundering charges, U.S. Attorney Barry Grissom said today. Two former bank employees also are charged in the case.

The Kansas case is part of a larger investigation that has resulted in more than 20 indictments with defendants in Indianapolis, Ind.; Seminole, Texas; Boston, Mass.; El Paso, Texas; Atlanta, Ga.; Oklahoma City, Okla.; Tulsa, Okla.; Denver, Colo.; and Mexico. The investigation in Kansas resulted in the seizure of more than 5,000 pounds of marijuana and more than $2 million in cash.

An indictment unsealed today in U.S. District Court alleges a couple from Meade funneled drug proceeds through their account at Plains State Bank while the former banker failed to report on the suspicious activity, even as millions of dollars flowed through the couple’s account. The bank is located at 411 Grand Ave. in Plains, Kan.

In a 37-count indictment, the following defendants are charged:

• George Enns, 69, and his wife, Agatha Enns, 67, both of Meade, Kan., co-owners of Southwest Windmill and Waterwell, Inc.: one count of money laundering conspiracy, 34 counts of money laundering and one count of attempted money laundering.
• James Kirk Friend, 52, Plains, Kan., who was appointed President of Plains State Bank in 2005, and replaced as president in 2013 when he was made senior vice president: one count of money laundering conspiracy, one count of failing to file a Suspicious Activity Report and 29 counts of money laundering.
• Matthew Thomas, 37, Plains, Kan., loan officer and officer of Plains State Bank until he left in 2014: one count of failing to file a Suspicious Activity Report.
• Kathey F. Shellman, 57, Plains, Kan., a cashier and IT officer at Plains State Bank until she left in 2014: one count of failing to file a Suspicious Activity Report.

The indictment alleges that:

• From 2011 to August 2014 deposits to the Enns’ account were more than $6.8 million, including more than $1.6 million in cash.
• The Enns also had an account at a Bank of America branch in El Paso, Texas. From 2011 to August 2014, more than $900,000 was transferred from the Enns’ account at Bank of America to their account at Plains State Bank.
• The activity in the Enns’ two accounts was not produced by Southwest Windmill and Waterwell, Inc. The monies flowing through these accounts was not reported to the Enns’ accountant or reported on their tax returns.
• From Jan. 11, 2012, to Aug. 12, 2014, the Enns crossed the U.S. border to and from Mexico at least 25 times. On at least four occasions they were stopped by customs officials and found to be in possession of large amounts of cash. For instance, on July 26, 2013, they were stopped at the Columbus, N.M., port of entry carrying $317,500 in a black trash bag.
• Defendant George Enns told law enforcement officers that the U.S. currency was to be used to buy seeds for his seed business in Mexico.
• Defendant Friend knew the Enns were bringing bulk currency from Mexico to the United States.
• Bank officials did not require the Enns to provide proof that any of the currency transported from the United States was declared at the border and did not look into the source of the currency. They did not fill a SAR report on any transactions conducted on the Enns’ account.

Upon conviction, the alleged crimes carry the following penalties:

          Conspiracy to commit money laundering: A maximum penalty of 20 years and a fine up to $250,000.

          Failing to file a report: A maximum penalty of five years and a fine up to $250,000.

          Money laundering: A maximum penalty of 20 years and a fine up to $500,000 on each count.

          The following agencies investigated: The Drug Enforcement Administration, the Federal Deposit Insurance Corporation and the Internal Revenue Service. Assistant U.S. Attorney Debra Barnett 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 Kansas state legislator was sentenced Monday to 18 months in federal prison for defrauding Farmers and Merchants Bank of Colby, Kan., of more than $460,000, some of which he deposited in his campaign account, U.S. Attorney Barry Grissom said. He also was ordered to pay $461,000 in restitution.

 Trent K. LeDoux, 40, Holton, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted he applied for three loans from the bank, falsely representing that he was going to use all the funds to buy cattle that would serve as the collateral for the loans. In fact, he used some of the money to pay off existing debts and to make contributions to his political campaign account.

Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.

TOPEKA, KAN. – A man who owns property in Jackson County, Kan., was sentenced Friday for violating the federal Clean Water Act, U.S. Attorney Barry Grissom said.

Rodney Heinen, 38, Dawson, Neb., was fined $20,000 and ordered to complete restoration of two properties in Jackson County pursuant to a professional restoration plan that estimated the cost at more than $500,000.

Heinen pleaded guilty to one count of discharging pollutants into a stream without a permit. In his plea, he admitted he caused earthen fill and wood debris to be placed in streams flowing through properties he owns in Jackson County.

A regulatory specialist with the Corps of Engineers discovered the violations on one of Heinen’s properties on Feb. 2, 2012. Heinen refused to allow the Corps of Engineers access to the property to make an environmental assessment. The violation affected several unnamed tributaries to Straight Creek, which drains into the Delaware River, which is classified as a Traditionally Navigable Water.

 In 2013, the Corps of Engineers found a similar violation on another property in Jackson County owned by Heinen. The violation affected two unnamed tributaries to North Cedar Creek, which drains into the Delaware River.

Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.

KANSAS CITY, KAN. -  A Kansas City man pleaded guilty Thursday to federal charges of taking part in five bank robberies in Kansas and Missouri, U.S. Attorney Barry Grissom said.

Dale Williamson, 35, Kansas City, Mo., pleaded guilty to five counts of bank robbery. In his plea, he admitted driving a getaway car in the following bank robberies.

• April 24, 2014, UMB Bank, 6252 Raytown Road, Raytown, Mo.
• May 12, 2014, First Bank of Missouri, 7001 North Oak Trafficway, Gladstone, Mo.
• May 22, 2014, Bank of America, 15811 Metcalf Ave. Overland Park, Kan.
• May 30, 2014, Commerce Bank, 9501 Antioch Road, Overland Park, Kan.
• May 30, 2014, Commerce Bank, 3606 Frederick Ave., St. Joseph, Mo.

Sentencing is set for July 6. Both parties have agreed to recommend a sentence of 55 months in federal prison. Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.

 

KANSAS CITY, KAN. – A federal grand jury today returned an indictment against a Topeka man who was charged in a criminal complaint last week with plotting to explode a bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom said.

John T. Booker, Jr., 20, Topeka, Kan., was indicted on one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), which is a foreign terrorist organization.

If convicted, Booker would face a maximum penalty of life in prison.

The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol and the Kansas Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney David Smith, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.

OTHER FEDERAL GRAND JURY INDICTMENTS

 

Randal H. Duncan, 57, Wichita, is charged with one count of bank robbery. The indictment alleges that on April 6, 2015, he robbed the Emprise Bank at 237 N. Broadway in Wichita.

A criminal complaint filed in the case alleges he entered the bank about 12:50 p.m. and said to a teller, “I have a bomb, give me $40,000 cash.” He was arrested later at a laundromat at Hydraulic and Harry in Wichita.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

**

Sixto Refugio Largerous-Perez, 42, who is not a citizen of the United States, is charged with one count of unlawfully re-entered the United States after being deported. He was found April 1, 2015, in Olathe, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement and the U.S. Marshals Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

**

 

Carlos Byron, 59, Kansas City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 30, 2015 in Kansas City, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City (Kansas) Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

**

 

James G. Martin, 40, Independence, Mo., is charged with one count of conspiracy to commit forgery one count of passing a counterfeit $100 bill and one count of possessing $570 in counterfeit bills. The crimes are alleged to have occurred from Sept. 1, 2013, to Feb. 1, 2015, in Johnson County, Kan.

 f convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on the conspiracy count; and a maximum penalty of 20 years and a fine up to $250,000 on each of the other counts. The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

**

Luis Gerardo-Montenegro, 21, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of possessing a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred April 2, 2015, in Wyandotte County, Kan.

If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the drug charge, and penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Kansas Bureau of Investigation and ICE-HSI investigated. Special Assistant U.S. Attorney James Ward is prosecuting.

**

Sarah Willson, 26, Olathe, Kan., is charged with one count of destroying mail while working as a U.S. Postal Service employee. The crime is alleged to have occurred Nov. 21, 2014, in Olathe, Kan.

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

**

Matthew Williams, 46, Junction City, Kan., is charged with one count of bank fraud and one count of aggravated identity theft. The crimes are alleged to have occurred from July 25 to August 2014.

The indictment alleges he submitted false documentation on a Veterans Affairs home loan from Pulaski Bank. He also is alleged to have used another person’s Social Security number.

If convicted, he faces a maximum penalty of 30 years and a fine up to $1 million on the bank fraud charge, and an additional two years on the identity theft charge. The Veterans Administration – Office of Inspector General investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.

**

Bryce D. Draper, 26, Mission, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 7, 2015, in Douglas County, Kan.

 If convicted, he faces a penalty of not less than 15 years and a fine up to $250,000. The Lawrence (Kansas) Police Department investigated. Assistant U.S. Attorney David Zabel 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 was sentenced Monday to 12 years in federal prison for trafficking more than 12,000 pounds of marijuana over a period of two years, U.S. Attorney Barry Grissom said.

Jeremy Harris, 33, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute marijuana. In his plea, he admitted obtained and distributed the marijuana in Kansas during a period from 2011 to 2013. The plea agreement states:

• On Aug. 2, 2013, Harris received a bulk marijuana shipment near Augusta, Kan. Investigators seized 35 steel containers that contained a total of more than 1,000 pounds of marijuana.
• One of Harris’ co-conspirators admitted driving a vehicle from El Paso, Texas, to Wichita more than 15 times, each time transporting more than 150 pounds of marijuana.
• Other conspirators were responsible from transporting marijuana from Texas to Kansas, and for transporting bulk cash to Texas and Mexico for payment.
• Harris paid for marijuana with bulk cash or by making wire transfers as directed. On one occasion, he asked another conspirator to deliver $70,000 in cash to Mexico to pay for marijuana. On another occasion, he asked another conspirator to deposit cash into the account of a third party to transfer drug proceeds. On another occasion, three conspirators transported $170,000 to El Paso to pay for marijuana.

Co-defendants included:

       Jason Giesy, who was sentenced to 87 months in federal prison.

        Evan Woolsey, who was sentenced to 72 months.

Grissom commended the Wichita Police Department, the Drug Enforcement Administration, Assistant U.S. Attorney Debra Barnett and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.

KANSAS CITY, KAN. - An Olathe man pleaded guilty Monday to his role in a scheme to launder profits from marijuana trafficking through a casino in Kansas City, Kan., U.S. Attorney Barry Grissom said.

Christopher Anderson, 31, Olathe, Kan., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to commit money laundering. In his plea, he admitted he and other conspirators inserted more than $470,000 in proceeds of drug trafficking into slot machines at the Hollywood Casino in Kansas City, Kan. Then they cashed out at an ATM machine in the casino without playing. Their purpose was to convert small denomination bills into large denomination bills that were easier to transport from Kansas to California.

Anderson also admitted the following:

• The trafficking organization to which he belonged cultivated marijuana in California and transported it to the Kansas City area for distribution.
• During the early days of the organization, traffickers mailed Home Depot buckets and basketballs containing marijuana from California to Kansas. Over time, they began to drive cars carrying marijuana from California to Kansas, and money from Kansas to California.
• The conspirators also used Money Grams to send cash from Kansas to California.

Sentencing will be scheduled at a later time. Anderson faces a maximum penalty of 20 years in federal prison and a fine up to $500,000 on the money laundering charge and a maximum penalty of five years and a fine up to $250,000 on the drug distribution charge. Grissom commended the Kansas Bureau of Investigation, the Johnson County Sheriff’s Office, the U.S. Secret Service and Special Assistant U.S. Attorney Erin Tomasic for their work on the case.

KANSAS CITY, KAN. – A Topeka man has been charged in federal court in Topeka with attempting to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom, District of Kansas, and Assistant Attorney General for National Security John P. Carlin announced today. The defendant was arrested as part of an FBI investigation, and the device used by the defendant was, in fact, inert.

John T. Booker, Jr., 20, Topeka, Kan., was charged in a criminal complaint unsealed today with one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) Booker is expected to make an initial appearance this afternoon before U.S. District Judge Daniel Crabtree in federal court in Topeka.

Booker was arrested this morning near Manhattan, Kan., as he completed his final preparations to detonate a vehicle bomb targeting U.S. military personnel.

“We face a continued threat from individuals within our own borders who may be motivated by a variety of causes,” said U.S. Attorney Barry Grissom. “Anyone who seeks to harm this nation and its people will be brought to justice.”

“As alleged in the complaint, John Booker attempted to attack U.S. military personnel on U.S. soil purportedly in the name of ISIL,” said Assistant Attorney General Carlin. “Thanks to the efforts of the law enforcement community, we were able to safely disrupt this threat to the brave men and women who serve our country. Protecting American lives by identifying and bringing to justice those who wish to harm U.S. citizens remains the National Security Division’s number one priority.”

Booker is alleged to have spent months discussing multiple plans before deciding on a plan that involved the execution of a suicide bombing mission.

The complaint alleges Booker told another person “that detonating a suicide bomb is his number one aspiration because he couldn’t be captured, all evidence would be destroyed, and he would be guaranteed to hit his target.” Booker identified Fort Riley as a good target, “because the post is famous and there are a lot of soldiers stationed there,” the complaint alleges.

Booker allegedly produced a propaganda video in which he told the American people to get their loved ones out of the military now because, “The Islamic State is coming for them. From inside, whether it be in their homes, whether it be on a base like this, whether it be in the recruiting stations, whether it be in the streets.”

It is alleged that since March 2015, Booker plotted to construct an explosive device for an attack on American soil. It is alleged he repeatedly stated that he desired to engage in violent jihad on behalf of the ISIL. Over a period of months he took a series of actions to advance the plots. As alleged in the complaint, Booker:

-- Assisted in acquiring components for a vehicle bomb.

-- Produced a propaganda video.

-- Rented a storage locker to store components for the explosive device.

-- Identified Fort Riley as the target.

-- Talked about his commitment to trigger the device himself and become a martyr.

On Friday, Booker was arrested without incident near Manhattan, Kan., as he undertook preparations for the execution of his plan.

“I want to assure the public there was never any breach of Fort Riley Military Base. Recently the Command Staff at Fort Riley has been working hand-in-hand with law enforcement to ensure the utmost security and protection for the men and women who serve our country, and the surrounding community that supports the base,” said FBI Special Agent in Charge Eric Jackson.

FBI Evidence Response Teams are executing search warrants related to the case.

If convicted, Booker would face a maximum penalty of life in prison.

 The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol and the Kansas Bureau of Investigation.

The case is being prosecuted by Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney David Smith, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.

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

 

Booker complaint

KANSAS CITY, KAN. – A second Topeka man was charged Friday in connection with an alleged plot to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kan., U.S. Attorney Barry Grissom said.

Alexander E. Blair, 28, Topeka, Kan., is charged with one count of failing to report a felony. A criminal complaint filed Friday in U.S. District Court in Topeka alleges Blair knew of a plot by co-defendant John T. Booker, Jr., 20, Topeka, Kan., to detonate a bomb at Fort Riley.

The complaint alleges that in March 2014, the FBI began an investigation into Booker, who also called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process. Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.

During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb. The complaint alleges Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.” Despite being convinced that Booker was serious about carrying out the plot, the complaint alleges, Blair chose not to report what he knew to the authorities.

If convicted, he faces a maximum penalty of three years in federal prison. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

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

WICHITA, KAN. – A former city clerk of Altoona, Kan., was sentenced Tuesday to six months in jail for bank fraud, U.S. Attorney Barry Grissom said. She also was ordered to pay more than $47,000 in restitution to the city of Altoona.

Chrystal Scherbarth, 31, Altoona, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted the crime occurred while she was employed as city clerk. She used her access to the city’s accounts at the First Neodesha Bank to commit the crime.

The city of Altoona suffered a total loss of more than $47,800. Scherbarth diverted money from the city by fraudulently increasing her own hourly pay, fraudulently paying herself for overtime, fraudulently crediting herself with unearned paid vacation and fraudulently crediting herself with unearned sick leave.

Grissom commended the FBI, the Kansas Bureau of Investigation and Assistant U.S. Attorney Aaron Smith for their work on the case.

WICHITA KAN. – Two people who operated a business called Q Massage at 3833 W. 13th in Wichita were indicted Wednesday on federal charges, U.S. Attorney Barry Grissom said.

Ping Liu, 43, Wichita, Kan., and Xingdi Lin, 48, Wichita, Kan., are charged with one count of attempting to persuade, induce, entice or coerce an individual to cross state lines to engage in prostitution and one count of using a telephone in furtherance of prostitution. The crimes are alleged to have occurred March 13 and March 16, 2015 in Sedgwick County, Kan.

If convicted, they face a maximum penalty of 20 years and a fine up to $250,000 on enticement charge and a maximum penalty of five years and a fine up to $250,000 on the other count. The Wichita Police Department and Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.

OTHER FEDERAL GRAND JURY INDICTMENTS

A man who was arrested in Kansas after escaping from a prison in Oklahoma has been indicted here on federal firearms charges.

Lance D. Colbert, 40, an inmate at the Mack Alford Correctional Center in Stringtown, Okla., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of ammunition following a felony conviction, and one count of unlawfully possessing a .38 caliber revolver with the serial number removed.

On March 11, Colbert was arrested in Spivey, Kan. (Kingman County). He and another man had escaped from the prison in Oklahoma two days earlier.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and the Kansas Highway Patrol investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.

 

Walt Jasper Samuel Shrum, 48, Kingman, Kan., is charged with two counts of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of ammunition following a felony conviction and one count of possession of methamphetamine. The crimes are alleged to have occurred March 11, 2015, in Kingman County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each of the firearms charges and a civil penalty up to $10,000 on the misdemeanor methamphetamine charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.

 

Gary Dewayne Meacham, 53, Caney, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 11, 2014, in Montgomery County, Kan.

If convicted, he faces a maximum penalty of 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 David Lind is prosecuting.

        

Matthew T. Payton, 25, Wichita, Kan., is charged with one count of manufacturing counterfeit bills and one count of possessing counterfeit bills. The crimes are alleged to have occurred at various times from September 2014 to February 15, 2015, in Wichita, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

 

Wayne E. Williams, 45, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges he used a telephone to make false statements as part of his application for unemployment benefits. The indictment alleges he received more than $34,000 in benefits to which he was not entitled during a period from Sept. 26, 2009, to April 20, 2013.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The U.S. Department of Labor investigated. Assistant U.S. Attorney Jason Hart 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 was sentenced Monday to 78 months in federal prison in a federal mail theft case, U.S. Attorney Barry Grissom said.

Justin D. Anderson, 27, Wichita, Kan., pleaded guilty to one count of mail theft, one count of bank fraud and one count of unlawful possession of a firearm. In his plea he admitted that on Oct. 22, 2013, he and another person removed mail addressed to Geico Insurance from a U.S. Postal service mail receptacle in Wichita.

On Nov. 5, 2013, he presented and cashed an altered check at the Credit Union of America in Wichita. The check originally was written in the amount of $800 and made payable to Dewen Loan Servicing. He altered the check by adding his name to the payee line. He admits the check was stolen from a U.S. Postal Service mail receptacle.

In addition, he admitted that on Oct. 7, 2013, he possessed a 9 mm pistol. At the time he was prohibited from possessing a firearm because he had a prior felony conviction.

Grissom commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Derby Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.

WICHITA, KAN. – A Wichita man was sentenced Thursday to 16 years in federal prison for robbing a drug store, U.S. Attorney Barry Grissom said.

Ryan B. Schmidt, 34, Wichita, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that on Sept. 4, 2014, he entered Gessler’s Drug Store at 4817 E. Douglas in Wichita, brandished a gun and told an employee to give him prescription drugs. He fled the store with seven bottles of hydrocodone and three bottles of promethazine in a plastic bag.

Schmidt was involved in a high speed chase with police before hitting a utility pole and another vehicle and coming to a stop.

Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.

WICHITA, KAN. – A federal jury Thursday returned guilty verdicts in the trial of a Wellington man charged with distributing child pornography, U.S. Attorney Barry Grissom said.

Steven J. Meisel, 48, Wellington, Kan., was convicted on one count of distributing child pornography and one count of possessing child pornography. During trial, prosecutors presented evidence that on May 9, 2014, a Wichita police detective downloaded child pornography from Meisel’s computer over the ARES P2P computer network. The files included images of prepubescent children engaged in sex acts. Investigators followed an electronic trail to Meisel’s computer at his residence in Wellington.

Sentencing is set for July 1. He faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge; and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. Grissom commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Exploited and Missing Child Unit, the Internet Crimes Against Children Task Force, the Wellington Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.

TOPEKA, KAN. - A Lawrence man who helped launch a global sales and supply network for smokable synthetic cannabinoids (synthetic marijuana) and other designer drugs was sentenced Monday to federal prison for violating the federal Food, Drug and Cosmetic Act, U.S. Attorney Barry Grissom said.

Bradley Miller, 57, Lawrence, Kan., was sentenced to 87 months in federal prison. He pleaded guilty to one count of conspiracy, one count of misbranding and one count of mail fraud. In his plea, he admitted he conspired with his brother, co-defendant Clark Sloan, and Sloan’s son, co-defendant Jonathan Sloan, to manufacture and sell designer drugs, including a marijuana substitute called K2 that was named after the second-highest mountain in the world.

Miller and Jonathan Sloan owned and operated Persephone’s Journey, a retail store at 1103 Massachusetts in Lawrence, Kan., and Bouncing Bear Botanicals, 14501 South U.S. 59 Highway, Oskaloosa, Kan. Both businesses ostensibly sold herbs and botanical products. Over time, the business grew to encompass a chain of suppliers, retailers, wholesalers and business associates with locations in Kansas, California, Massachusetts, New Jersey, Oregon, Nevada and Indiana, as well as in other nations including Argentina, Latvia, Germany, Lithuania, the United Kingdom, Ukraine, the Netherlands, Canada, Sweden, Singapore, Thailand and Uruguay. The defendants made at least $3.3 million from the sale of the drugs

Miller developed recipes for K2 and manufactured it. During the Sloans’ trial, prosecutors presented evidence that:

• The defendants manufactured and distributed K2 as an Aall natural product@ but it contained synthetic chemicals called JWH Compounds that mimic the effects of the THC in marijuana. Their products also contained solvents, either the alcohol Everclear or acetone, as well as other additives.
• They manufactured and sold at least four types of K2 products: Standard, Citron, Blonde and Summit, with Standard being the least potent and Summit being the most potent, depending on the amount of JWH Compounds that were mixed with herbs.
• The defendants manufactured the K2 without quality controls, resulting in inconsistent potencies. They intended K2 products to be smoked like marijuana by recreational drug users, but they falsely referred to K2 products as aromatic incense and falsely labeled them as Anot for consumption.@

Co-defendant Clark Sloan was sentenced to 87 months in federal prison. Jonathan Sloan was sentenced to 96 months.

“Protecting the public health lies at the core of FDA’s and Office of Criminal Investigation’s mission,” said Catherine Hermsen, special agent in charge, FDA Office of Criminal Investigation, Kansas City Field Office. “When innocent-appearing products disguise their actual ingredients, their safety cannot be assured. We will continue to work to bring to justice those who would endanger the public health.” 

Grissom commended the Food and Drug Administration - OCI, Assistant U.S. Attorney Tanya Treadway and Assistant U.S. Attorney Tony Mattivi for their work on the case.

WICHITA, KAN. - A former loan officer for a bank in Great Bend pleaded guilty Monday to a federal charge of bank fraud, U.S. Attorney Barry Grissom said.

Brian W. Harrison, 56, Great Bend, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted the crime occurred during the time from 2004 to 2012 when he was a loan officer for Farmer’s Bank and Trust in Great Bend.

His duties included reviewing, approving and disbursing loans within his lending authority without the approval of the bank’s loan committee. In furtherance of a scheme to defraud the bank, he made or caused to be made false statements to the bank to hide the poor performance of various loans he made. His false statements were intended to deflect questions from the bank about problems with the loans. He falsified credit and loan applications, promissory notes and security agreements on behalf of a purported debtor without the debtor’s proper authority.

Sentencing is set for he. Both parties have agreed to recommend a sentence of six months in prison, followed by six months home detention, as well as an order to pay more than $124,000 in restitution.

Grissom commended the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and Assistant U.S. Attorney Aaron Smith for their work on the case.

WICHITA, KAN. - A Eureka man pleaded guilty Monday to making counterfeit money by “washing” old bills, U.S. Attorney Barry Grissom said.

Rusty D. Banning, 35, Eureka, Kan., pleaded guilty to one count of counterfeiting. In his plea, he admitted that in May 2014 he manufactured counterfeit $50 bills by “washing” genuine bills of smaller denominations and using a computer and printer to print the image of a $50 bill on the “washed” bill.

Sentencing is set for May 27. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.

Grissom commended the U.S. Secret Service and Assistant U.S. Attorney Alan Metzger for their work on the case.

KANSAS CITY, KAN. – A Lawrence contractor and five other people have been charged with money laundering, bank fraud and harboring undocumented workers, said U.S. Attorney Barry Grissom. A federal indictment unsealed today alleges they were part of a scheme to convert more than $13 million in payroll checks into cash to pay crews of undocumented workers installing drywall in the Kansas City metro area.

“The indictment alleges the money flowed through an illegal pipeline,” said U.S. Attorney Barry Grissom. “At one end were contractors who wanted cheap labor. At the other end were undocumented workers who needed a job.”

Charged in the case are:

• Keith L. Countess, 55, Lawrence, Kan., owner of Plaster Masters, L.C., a drywall subcontractor for commercial and residential construction projects. The company is located at 619 N. 2nd in Lawrence.
• Marcos Lane Stubbs, 44, who is alleged to have devised the scheme to enable drywall subcontractors to use undocumented workers.
• Luis Felipe Guerrero-Guerrero, 26, who is alleged to have managed crews of workers installing drywall.
• Jose Felipe Hernandez-Calvillo, 39, who is alleged to have managed a crew of workers installing drywall.
• Mauro Papalotzi, 34, who is alleged to have managed crews of workers installing drywall.
• Isaac Gallegos, 35, who is alleged to have allowed the scheme to be operated out of his Boost Mobile telephone store. It was located in the  1300 block of Santa Fe in Olathe, Kan.

The indictment alleges the scheme revolved around another man – Jose R. Torres, 51 – who was charged and convicted in a separate case. Torres pleaded guilty to one count of harboring undocumented workers and one count of operating an unlicensed money transmitting business. He is awaiting sentencing.

The indictment alleges Gallegos and Stubbs first explained to Torres how the scheme would work and how he could make money by becoming a financial intermediary between drywall subcontractors and drywall construction crews made up primarily of undocumented workers. They told Torres that in order to pay undocumented workers someone had to serve as a financial conduit between the subcontractors and the workers. The subcontractors would contract directly with drywall crews but would use Torres as a financial intermediary.

The scheme involved Torres holding himself out as a drywall subcontractor while in fact his role was merely to receive checks from drywall construction crews, deposit the checks into his own accounts, withdraw cash from his accounts and pay the crew leaders, who in turn paid themselves and the members of the crews. Torres kept 5 percent as his fee.

To get the venture started, Torres borrowed $1,400 from Gallegos, who allowed him to work out of Gallego’s Boost Mobile store in Olathe. Drywall crews were paid weekly. The subcontractor made checks payable to “Jose R. Torres Drywall.” The checks were taken to Torres, usually at the Boost Mobile store. He would deposit the checks. Later, usually on Saturday mornings, he would withdraw cash from his accounts. He would put the cash into envelopes with the crew leaders’ names on them. The crew leaders would pick them up, usually at the Boost Mobile store.

Between October 2012 and June 2014, checks totaling about $13.2 million were deposited into Torres’ accounts at Bank of America and Wells Fargo.

Upon conviction, the crimes carry the following penalties:

• Conspiracy to harbor undocumented workers: A maximum penalty of five years and a fine up to $250,000.
• Harboring undocumented workers: A maximum penalty of five years and a fine up to $250,000 on each count.
• Conspiracy to commit money laundering: A maximum penalty of five years and a fine up to $250,000 on each count.
• Money laundering: A maximum penalty of 20 years and a fine up to $500,000 on each count.
• Conspiracy to commit bank fraud: A maximum penalty of five years and a fine up to $250,000 on each count.
• Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.

Homeland Security Investigations (HSI) and the Internal Revenue Service – Criminal Investigation investigated. Assistant U.S. Attorney Jabari Wamble and Assistant U.S. Attorney Brent Anderson 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 Kansas City, Kan., woman has been indicted on charges of preparing false federal income tax returns, U.S. Attorney Barry Grissom said today.

Prayshana Washington, 27, Kansas City, Kan., was indicted Thursday in U.S. District Court in Kansas City, Kan., on 21 counts of aiding and assisting in the preparation of federal income tax returns containing false information.

The indictment cites tax returns filed for 15 individuals for tax years 2011 and 2012 containing false information on wages, dependents, and education credits and American Opportunity Credits that help pay college expenses. The Internal Revenue Service – Criminal Investigation investigated. Assistant U.S. Attorney Scott Rask and Matthew Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, are prosecuting.

 

OTHER INDICTMENTS

Charles Leonhardt Haupt, 31, La Cygne, Kan., was indicted Thursday on one count of conspiracy to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in February and March 2015 in Linn County, Kan.

If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the methamphetamine charge, not less than five years (consecutive to other sentences) and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on each of the other two counts. The Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Jonathan Luis Martin, 30, of Franklin County, Kan., and Charles Bradley Grissom, 26, of Franklin County, Kan., are charged in a superseding indictment with one count of unlawful possession of a pipe bomb. In addition, Martin is charged with one count of unlawful possession of a sawed off shotgun and one count of unlawful possession of a firearm following a felony conviction. In addition, Grissom is charged with one additional count of unlawfully making a pipe bomb and one count of unlawful possession of a destructive device (pipe bomb) after a felony conviction. The crimes are alleged to have occurred in August and December 2014 in Franklin County, Kan.

If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

In a separate superseding indictment, Charles Bradley Grissom, 26, of Franklin County, Kan., is charged with one count of distributing methamphetamine, one count of unlawfully possessing firearms in furtherance of drug trafficking, one count of unlawfully possessing a firearm while he was a user on methamphetamine, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in May and August 2014 in Franklin County, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison 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 unlawful possession of firearms in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on each of the other counts. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Petsami Phommaseng, 34, Lawrence, Kan., is charged in a superseding indictment with two counts of unlawful possession of a firearm in furtherance of drug trafficking and two counts of unlawful possession of a firearm by a user of methamphetamine. Co-defendant Susan Khampannha, Lawrence, Kan., is charged with unlawfully allowing a residence in the 2500 block of Ousdahl Road in Lawrence to be used for distributing methamphetamine. The crimes are alleged to have occurred in 2014 and 2015 in Lawrence.

Upon conviction, the crimes carry the following penalties:

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

          Unlawful possession of a firearm by a user of methamphetamine: A maximum penalty of 10 years and a fine up to $250,000.

          Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $250,000.

 

The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Adam Davis, 39, Parsons, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 24, 2014, in Parsons, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Scott Rask 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 Topeka man pleaded no contest Monday to federal armed robbery charges, U.S. Attorney Barry Grissom said.

Henry Earl Sirvira, 46, Topeka, Kan., entered a plea of nolo contendere to two counts of commercial robbery and one count of brandishing a firearm during a robbery. During the plea hearing, prosecutors told the judge that on July 29, 2013, Sirvira and co-defendant Quartez Norwood robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka. Sirvira pointed a handgun at an employee and threatened to kill him unless he opened the safe.

On Aug. 3, 2013, Sirvira and Norwood robbed the Family Dollar Store at 2616 S.E. 6th Street in Topeka. Norwood pointed a gun at the clerk while Sirvira assaulted a patron in another part of the store.

Sentencing is set for June 1. Both parties have agreed to recommend a sentence of 11 years in federal prison.

Co-defendants include:

Quartez Norwood, who was sentenced to 180 months.

Henry Lavelle Davis, who was sentenced to 84 months.

Robert Wayne Redmond, who was sentenced to 60 months.

Xavier Leron Sims, who was sentenced to 35 months.

Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.

TOPEKA, KAN. - A Topeka business owner who pleaded guilty to writing more than 5,000 insufficient fund checks in a check kiting scheme was sentenced Monday to 37 months in federal prison, U.S. Attorney Barry Grissom said. The defendant was ordered to pay more than $538,000 in restitution.

John Charles Humpage, III, 49, Topeka, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted that in 2008 he defrauded the Educational Credit Union, Kaw Valley State Bank and Alliance Bank. Humpage did business under various names including Humpco, Inc., Crescent Limousine, Yellow Cab of Topeka and Wire and Glass Lease, LLC. He carried out a scheme to defraud the banks by exchanging and cross-depositing insufficiently funded checks between two or more of his bank accounts. In that manner, he generated artificially inflated account balances. The check kiting scheme utilized bank system Afloat@ periods for purposes of creating artificially enhanced bank account balances.

From May through August 2008 he exchanged and cross deposited more than 5,000 insufficient checks and created in excess of $78 million in aggregate deposit amounts. Those deposits falsely inflated his bank account balances by more than $600,000.

Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for his work on the case.

KANSAS CITY, KAN. - A Leavenworth man pleaded guilty Wednesday to fraudulently collecting more than $46,000 in government benefits, U.S. Attorney Barry Grissom said.

Michael James Munsterman, 42, Leavenworth, Kan., pleaded guilty to one count of theft of government funds. In his plea, he admitted he received Supplemental Security Income, food stamps and Medicaid even though he did not qualify for those benefits. In April 2011 he applied for SSI benefits claiming that he had a drug-induced heart condition that prevented him from working. He did not reveal to the government that he owned and operated a heating and cooling company and received substantial income from the business while he was receiving benefits. He also admitted that he concealed from the federal government his financial resources that far exceeded the eligibility criteria of the aforementioned needs-based programs.

He fraudulently received a total of approximately $46,367 in government funds.

Sentencing is set for June 16, 2015. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Pursuant to the plea agreement, Munsterman must also pay restitution to the victim-agencies.  Grissom commended the Social Security Administration’s Office of Inspector General and Special Assistant U.S. Attorney Trey Alford for their work on the case.

TOPEKA, KAN. - A Lawrence woman was sentenced Wednesday to 24 months in federal prison for embezzlement and ordered to pay $837,000 in restitution to her former employer, U.S. Attorney Barry Grissom said.

Sharon Ann Holladay, 58, Lawrence, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred while she worked as an officer manager for Westheffer Company, a Lawrence business that manufactures and sells agricultural chemical spray equipment.

Holladay used her access to the company’s financial system to transfer money from the operations account to a petty cash fund she controlled. She also used her access to the payroll system to give herself unauthorized bonuses and commissions. In addition, she made unauthorized purchases on the company’s credit card.

Grissom commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.

TOPEKA, KAN. – Three people were indicted Wednesday on federal charges of kidnapping and killing a Junction City woman, U.S. Attorney Barry Grissom said. Grissom said his office is prosecuting the case jointly with the Geary County Attorney in federal court.

The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan.

Charged with one count of kidnapping resulting in death are:

                  Larry L. Anderson, 26, who is being held in the Geary County Jail.

                  Marryssa M. Middleton, 23, who is being held in the Geary County Jail.

                  Drexel A. Woody, 24, who is being held in the Geary County Jail.

The indictment alleges that on Feb. 7, 2014, the defendants kidnapped the victim and held her on the Fort Riley military installation. While they were holding her they killed her.

If convicted, they face a maximum penalty of life in federal prison without parole. The Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division and the FBI investigated. Assistant U.S. Attorney Jared Maag, Assistant U.S. Attorney Tony Mattivi and Geary County Attorney Steven Opat are prosecuting.

 

OTHER INDICTMENTS

Frederick L. Sanders, 43, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 30, 2015, in Shawnee County, Kan.

If convicted, he faces a maximum penalty of 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 Tony Mattivi is prosecuting.

 

Luis Guadalupe Leon-Aceves, 44, Cavroca, Mexico, is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 8, 2015, in Sedgwick County, Kan.

If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs 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. - The owner of an Overland Park hotel was sentenced Monday to 27 months in federal prison for employing undocumented workers, who were paid less than other employees, U.S. Attorney Barry Grissom said. Last month, the defendant’s wife was sentenced to 21 months in the same case.

“I hope Kansas business owners are listening,” said Grissom. “You can go to prison for knowingly employing undocumented workers. Violating federal law is not a good business strategy.”

Munir Ahmad Chaudary, 53, and his wife, Rhonda R. Bridge, 42, both of Overland Park, Kan., pleaded guilty to one count of conspiracy to harbor undocumented aliens for financial gain. In their pleas, they admitted employing undocumented workers at two hotels they owned: A Clarion Hotel at 7000 W. 108th in Overland Park, and a Clarion Hotel at 11828 NW Plaza Circle in Kansas City, Mo.

Chaudary and Bridge lowered their hotels’ operating costs and put themselves at a competitive advantage by not paying Social Security, Workers Compensation and unemployment insurance for the undocumented workers.

“The Chaudarys sought to game the system and gain an unfair business advantage over their legitimate competitors by hiring illegal aliens at cut-rate wages,” said Gary Hartwig, special agent in charge of HSI Chicago. “Homeland Security Investigations will continue to work with our federal, state, and local partners to keep the playing field level for all American business owners.”

“Employers who are covered by the Fair Labor Standards Act must pay minimum wages and overtime premiums to their employees. They must not be allowed to evade these provisions by hiring undocumented workers and paying them less than the statute requires,” said Ricky Robinson, Acting District Director of the Kansas City District Office of the Wage and Hour Division of the U.S. Department of Labor. “We will continue to enforce the FLSA without regard to whether an employee is documented or undocumented. Under the FLSA, the Department (or an employee) seeks back pay for hours an employee has actually worked, under laws that require payment for such work.”

According to court records, the investigation began in December 2011 when the U.S. Department of Homeland Security (DHS) and the Kansas Department of Revenue (KDOR) received information that the owners of the hotels were employing foreign nationals who were not lawfully present in the United States. In June 2012, an undercover agent posing as an undocumented worker got a job at the Overland Park Hotel. He was hired even though he told his employers he was not authorized to work in the United States.

In 2011 and 2012 the defendants filed false and fraudulent Quarterly Wage Reports and Unemployment Tax Returns with the Kansas Department of Labor in which they under-reported the number of employees at the Overland Park hotel, the amount of total wages paid and the amount of unemployment taxes due.

Chaudary is the final defendant to be sentenced in the case. Judith Vanzant, a hotel manager, and Syed Naqvi, a Pakistani native who worked as a desk clerk, already were sentenced.

The government also is seeking forfeiture of the proceeds of the crime. The judge will take up that issue at a later time.

Grissom commended Homeland Security Investigations (HSI), the Kansas Department of Revenue (KDOR), the Overland Park Police Department, the U.S. Department of Labor and Assistant U.S. Attorney Brent Anderson for their work on the case.

WICHITA, KAN. - The former recreation director for the City of Osawatomie is scheduled to appear in court this month on a federal indictment alleging he embezzled more than $125,000 from the city, U.S. Attorney Barry Grissom said Monday.

Ron Maring, 53, Osawatomie, Kan., is scheduled for an initial appearance March 27 in U.S. District Court in Wichita. He is charged with four counts of tax fraud and 10 counts of money laundering.

The indictment alleges that from 2008 to 2011 while Maring was director of the Osawatomie Recreation Commission he embezzled approximately $125,665. He wrote checks from the recreation commission’s account to himself and to American Legion Baseball. He converted the money for his own use and not for the use of the recreation commission or American Legion Baseball.

As part of the scheme, he persuaded recreation commission board members to sign blank checks, used his own signature as an endorsement, instructed a recreation commission employee to endorse checks and forged the name of recreation commission members.

The indictment alleges he failed to report the embezzled money as income on his 2008, 2009, 2010 and 2011 federal income taxes. The indictment also cites 10 dates in 2011 in which Maring deposited stolen funds into his personal account.

The Osawatomie Police Department, the Kansas Department of Revenue, Office of Special Investigation, and the Internal Revenue Service – Criminal Investigations investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.