District of Kansas

TOPEKA, KAN. - A Topeka man was sentenced Monday to 57 months in federal prison after he pleaded guilty to federal bank fraud charges in connection with a plan to build an apartment complex in Junction City, U.S. Attorney Barry Grissom said today.

John Wyatt Duncan, Jr., 53, Topeka, Kan., pleaded guilty to two counts of bank fraud, one count of money laundering and one count of making false statements in documents required by the Employee Retirement Income Security Act (ERISA).

In court documents, Duncan was alleged to have obtained a $15.2 million construction loan for the purpose of constructing Quinton Pointe Apartments in Junction City. He was required to provide $1,225,000 in collateral. He signed a letter to the lender, University National Bank of Lawrence, Kan., falsely stating that lumber for the construction of the apartment complex, representing collateral for the loan, was prepaid in full and being held by Schmidt Builders, a company for which he was chief executive officer. He instructed employees of Schmidt Builders to create a false invoice in an amount of more than $1.3 million to a company he owned called Blue Jay Properties LLC in order to create the false appearance that Blue Jay Properties had prepaid Schmidt Builders for the lumber.

In another count, Schmidt Builders acquired a $12 million line of credit loan from Kaw Valley National Bank of Topeka and agreed to provide the bank with monthly financial reports. Duncan submitted reports to the bank containing false information about the age of certain accounts receivable and the amount of inventory on hand.

Grissom commended the Internal Revenue Service, Criminal Investigations Division; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Reserve Board, Office of Inspector General; the U.S. Department of Labor, Assistant U.S. Attorney Duston Slinkard and Assistant U.S. Attorney Jabari Wamble for their work on the case.

Sends Two Men to Federal Prison

WICHITA, KAN. - Two men were sentenced Monday to federal prison for marijuana trafficking in the Wichita area, U.S. Attorney Barry Grissom.

Jason Giesy, 31, Augusta, Kan., was sentenced to 87 months in federal prison. He pleaded guilty to one count of aiding and abetting possession of more than 100 kilograms of marijuana.
Evan Woolsey, 28, Wichita, Kan., was sentenced to 72 months in federal prison. He pleaded guilty to one count of possession with intent to distribute marijuana, and one count of unlawful possession of a firearm in furtherance of a drug trafficking crime.

In his plea,Giesyadmitted that on Aug. 2, 2013, investigators seized approximately 1,000 pounds of marijuana from a residence in Rose Hill, Kan.

According to court records, the investigation began in January 2012 when Wichita police learned that Giesy was selling marijuana from his home in Wichita. During the investigation, Giesy moved to Augusta.

In his plea, Woolsey admitted that investigators found marijuana and firearms when they served a search warrant June 20, 2013, at his home in Wichita.

Co-defendants include: Jeremy Harris, 32, Wichita, Kan., who is set for trail Nov. 4.
Amanda Harris Renteria, 30, Wichita, Kan., who was sentenced to three years’ probation.

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

KANSAS CITY, KAN. - A Kansas man was sentenced Monday to 30 months in federal prison for helping to rob a Franklin County Bank, U.S. Attorney Barr Grissom said.

Robert Martin, 39, Quenemo, Kan., pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of bank robbery. In his plea, he admitted he took part in the March 19, 2014, robbery of Goppert State Service Bank at 118 East Franklin Street in Pomona, Kan. He said he drove to the bank with co-defendant Caleb Jeffcoat. He gave Jeffcoat a mask and BB gun that had been altered to make it look more like a real gun. Jeffcoat entered the bank and robbed a teller.

Investigators used video surveillance from a Dollar General store and a gas station in Pomona to identify the robber.

Co-defendants are: Caleb Jeffcoat, 26, Quenemo, Kan., who is awaiting sentencing.
Christel Collins, 37, Quenemo, Kan., who is awaiting sentencing.

Grissom commended the Franklin County Sheriff’s Office, the Ottawa Police Department, the Kansas Bureau of Investigation, the FBI, the Franklin County Attorney’s Office and Assistant U.S. Attorney Scott Rask for their work on the case.

KANSAS CITY, KAN. - A man from Belize who used the alias “Popeye” to peddle methamphetamine on the streets of Overland Park was sentenced Monday to nine years in federal prison, U.S. Attorney Barry Grissom said.

John Michael Hernandez, 41, pleaded guilty to one count of distributing methamphetamine and one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. In his plea, he admitted he was using the alias “Popeye” in December 2013 when he began selling methamphetamine to undercover investigators working with the Kansas Bureau of Investigation. In a series of transactions, he sold them more than a pound of methamphetamine.

After he was arrested, Homeland Security Investigations used the Automated Biometric Identification System (IDENT) and the integrated Automated Fingerpring System (AFIS) to determine Hernandez had previously been convicted of robbery in Los Angeles and deported from the United States to Belize in 2009.

Grissom commended the Kansas Bureau of Investigation, Homeland Security Investigations and Assistant U.S. Attorney Sheri McCracken for their work on the case.

TOPEKA, KAN. - A Lawrence woman pleaded guilty Tuesday to embezzling more than $750,000 from her 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 the 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.

She embezzled a total of between $750,000 and $1 million from the company.

Sentencing will be set for a later time. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Lawrence Police Department, the FB I and Assistant U.S. Attorney Rich Hathaway for their work on the case.

KANSAS CITY, KAN. Today the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced funding awards to six law enforcement agencies in Kansas aimed at creating, and in some cases protecting, law enforcement positions. Nearly $124 million will be awarded nationally, including $704,755 in Kansas.

The list of this year’s grantees includes:

Bel Aire Police Dept., $114,971
Cherryvale Police Dept., $95,645
Derby Police Dept., $125,000
City of Iola, $119,139
Kansas State University, $125,000
Osawatomie Dept. of Public Safety, $125,000.

“Our goal is to improve public safety and help strengthen relationships between the officers and the communities they serve,” said U.S. Attorney Barry Grissom.

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime and school safety.”

Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates and community policing plans.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

KANSAS CITY, KAN. A defendant in a bank robbery in Lanagan, Mo., was sentenced Tuesday to two years in federal prison, U.S. Attorney Barry Grissom said.

Stephen Hudson, 34, pleaded guilty to one count of attempted bank robbery. In his plea, he admitted that on July 2, 2012, he drove co-defendant Daniel Lee Waddell to Lanagan, Mo., for the purpose of robbing the Corner Stone Bank.

Co-defendant Daniel Lee Waddell was sentenced to 210 months in federal prison for the robbery at the Corner Stone Bank, as well as another robbery March 5, 2013, at the Citizens State Bank in Kincaid, Kan.

Grissom commended the Kansas Bureau of Investigation, the Anderson County Sheriff’s Office, the FBI, Assistant U.S. Attorney Jabari Wamble and Missouri law enforcement agencies for their work on the case.

WICHITA, KAN. An Emporia man who was arrested after sheriff’s officers found 35 pounds of marijuana and 21 firearms in his home was sentenced Monday to 21 months in federal prison, U.S. Attorney Barry Grissom said.

Keenan R. Linneman, 34, Emporia, Kan., pleaded guilty to one count of traveling in interstate commerce in furtherance of drug trafficking. In his plea, he admitted aiding and abetting another person to obtain 35 pounds of marijuana from Texas. On Nov. 4, 2013, the Lyon County Sheriff’s Department executed a search warrant at Linneman’s home where they found the marijuana and the firearms.

Grissom commended the Lyon County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Lanny Welch for their work on the case.

TOPEKA, KAN. A former secretary-treasurer of a railroad union pleaded guilty Monday to embezzling union funds, U.S. Attorney Barry Grissom said.

Dale T. Hull, 62, Herington, Kan., pleaded guilty to one count of embezzling union funds. In his plea, Hull admitted the crime occurred while he was secretary-treasurer of the Brotherhood of Locomotive Engineers and Trainmen, Division 261, which represented employees of the Union Pacific Railroad who work in the Herington, Kan., terminal and the Salina, Kan., hub.

Starting in 2008, Hull made unauthorized and illegal account transfers from the union’s account to his personal checking account totaling more than $17,000. He also filed false reports to the U.S. Department of Labor in which he understated his earnings as secretary-treasurer of the union.

Sentencing is set for Jan. 5, 2015. He faces a maximum penalty of five years in federal prison, a fine up to $250,000 and restitution. Grissom commended the U.S. Department of Labor – Office of Inspector General and Assistant U.S. Attorney Richard Hathaway for their work on the case.

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TOPEKA, KAN. – A Topeka man was indicted Wednesday on a federal charge of conspiring to buy firearms and unlawfully transfer them to a buyer in another state, U.S. Attorney Barry Grissom said.

Donald Gene Garst, 52, who is in the custody of the Bureau of Prisons, is charged with one count of conspiring to unlawfully transfer firearms. The indictment alleges that on Aug. 16, 2013, Garst was referring to firearms when he told an unindicted co-conspirator that there was a lot of money to be made in “women’s shoes” and that they should acquire all the “women’s shoes” they could.

On Sept. 13, 2013, another unindicted co-conspirator rented space at Quality Storage Facility, 426 E. 6th in Holton, Kan. The next day, she took out a loan of $1,500 and purchased a Cobra Model FS380 pistol and a New Frontier Armory Model LW-15 rifle. She put them in a suitcase belonging to Garst for delivery to the storage facility. She gave Garst the combination to the storage locker so that he could pass it on to a person from another state who would retrieve the firearms and leave $2,800 in an envelope marked “Barney” to pay for the firearms. On Sept. 19, 2013, the purchaser entered the storage locker and retrieved the firearms.

If convicted, Garst faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

OTHER INDICTMENTS

Six Kansas City, Kan., men are charged in a superseding indictment with conspiracy to distribute methamphetamine and other counts. The crimes are alleged to have occurred Jan. 1, 2014, to Sept. 5, 2014, in Kansas City, Kan.

Among those charged are the following: Jesus Octavio Valdez-Acguirre, Kansas City, Kan.
Mario Saucedo-Avalos, 39, Kansas City, Kan.
Jessie Joe Silva, 38, Kansas City, Kan.
Roberto Lara-Mojica, 20, Kansas City, Kan.
Ramon Espinoza, 68, Kansas City, Kan.
Juan Manuel Lopez-Garcia, Kansas City, Kan., 25, Kansas City, Kan.

The indictment seeks a forfeiture money judgment of $148,000, representing the proceeds of the crimes.

Upon conviction, the crimes alleged in the indictment carry the following penalties: Conspiracy to distribute methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Distributing methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.
Distributing 50 grams or more of methamphetamine: Not less than 10 years and a fine up to $10 million on each count.
Unlawful possession of a firearm by an alien unlawfully in the United States: A maximum penalty of 10 years and a fine up to $250,000 on each count.

The Drug Enforcement Administration investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Six Kansas men are charged with conspiracy to distribute methamphetamine and other counts. The crimes are alleged to have occurred from October 2013 to Sept. 5, 2014, in Wyandotte County, Kan.

Among those charged are the following: Vicencio Olea-Monarez, 36, Kansas City, Kan.
Gabriel Agustin Lopez, 28.
Rosalio Chinchilla, 44, Kansas City, Kan., Jose Luis Silva-Cardona, 24, Kansas City, Mo.
Joshua Thomas Alvarez, 25, Kansas City, Kan.
Lee Thomas Faulkner, 40, Topeka, Kan.

The indictment alleges members of the conspiracy maintained residences at 719 Lyons Ave. in Kansas City, Kan., and 1201 Gilmore Ave. in Kansas City, Kan., in furtherance of drug trafficking.

Upon conviction, the crimes alleged in the indictment carry the following penalties: Conspiracy to distribute methamphetamine, possession with intent to distribute 1,000 marijuana plants, distributing methamphetamine, attempt to possess with intent to distribute methamphetamine: Not less than 10 years and a fine up to $10 million on each count.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $1 million.
Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $500,000.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.

The FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.

Juan Lopez-Morales, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 6, 2014, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement 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.

TOPEKA, KAN.  A father and son from Kansas who helped launch a global sales and supply network for a synthetic version of marijuana were convicted today on charges of violating the federal Food, Drug and Cosmetic Act, U.S. Attorney Barry Grissom said.

A federal jury convicted the men on charges of conspiring to manufacture and sell a marijuana substitute called K2 – named after the second-highest mountain in the world. The business, which began in a shop in Lawrence, Kan., 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.

A federal jury convicted Clark Sloan, 55, Tonganoxie, Kan., and his son, Jonathan Sloan, 33, Lawrence, Kan., on 20 counts including one count of conspiracy, two counts of misbranding, 15 counts of mail fraud, one count of smuggling and one count of money laundering.

The defendants were acquitted on five other counts.

During trial, prosecutors presented evidence that Jonathan Sloan was co-owner of two businesses, Persephone's Journey, a retail store in Lawrence, Kan., and Bouncing Bear Botanicals, ostensibly a wholesaler of herbs and botanical products, with co-defendant Bradley Miller of Wichita, Kan. Bouncing Bear Botanicals was located in the basement of Persephone's Journey and then moved to a warehouse in Oskaloosa, Kan. Clark Sloan, who was Miller’s brother, developed and monitored the Web site for Bouncing  Bear Botanicals and worked in marketing and Internet technologies.

Miller developed recipes for K2 and manufactured it. During 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.@

“The public is put at risk by those who distribute drugs that are misbranded because of deceptive labeling or inadequate directions for use,” said Catherine Hermsen, Special Agent in Charge of the FDA’s Office of Criminal Investigations. “We will continue to work to prevent such drugs from reaching the U.S. market and to bring to justice those who attempt to circumvent FDA’s regulations, which protect the public health.”

Sentencing is set for Jan. 26, 2015. The crimes carry the following penalties: Conspiracy: A maximum penalty of five years in federal prison and a fine up to $250,000.
Distributing misbranded K2: A maximum penalty of three years and a fine up to $250,000.
Mail fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Smuggling: A maximum penalty of 10 years and a fine up to $250,000.
Conspiracy to commit money laundering: A maximum penalty of 20 years and a fine up to $500,000.

Co-defendant Bradley Miller is awaiting trial.

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

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

KANSAS CITY, KAN. – A chemical company with a plant in Kansas City, Kan., pleaded guilty and was sentenced Thursday to pay a $1.5 million fine for violating a federal law regulating the storage of hazardous waste, U.S. Attorney Barry Grissom said. The company will serve two years on federal probation.

Harcros Chemicals Inc., 5200 Speaker Road in Kansas City, Kan., pleaded guilty to one count of storing hazardous waste without a permit.

Harcros manufactures industrial chemicals including surfactants, emulsifiers, antifoaming agents and custom organics. In addition to its manufacturing, the company operated eight laboratories for the development and testing of new chemical products.

In its plea, the company admitted that from at least May 5, 2006, through Jan. 30, 2009, the company stored waste chemicals including phosgene solution, ethylenediamine, 1,4-dioxane, butyl acrylate, acrylic acid and methacrylate at the facility. The company did not have a permit to store hazardous waste for more than 90 days as required by the Resource Conservation and Recovery Act.

“EPA’s commitment to protect the environment includes bringing to justice those who, in the course of breaking the law, disregard the harm they pose to public health,” said Michael Burnett, Special Agent in Charge of EPA’s criminal enforcement program in Kansas. “The defendant’s illegal storage practices threatened groundwater supplies and put employees and the public at serious risk. Today’s plea demonstrates that those who knowingly engage in criminal activity must be willing to face the consequences in court.”

          Grissom commended the Environmental Protection Agency – Criminal Investigation Division, the Kansas Department of Health and Environment, Jennifer A. Whitfield, Senior Trial Attorney, Department of Justice Environment and Natural Resource Division, Environmental Crimes Section, and Assistant U.S. Attorney Tris Hunt for their work on the case

TOPEKA, KAN. – A Lawrence man pleaded guilty in federal court Wednesday to embezzling more than $1 million from his company and his business partners, U.S. Attorney Barry Grissom said.

 Mark W. Elzea, 55, Lawrence, Kan., pleaded guilty to one count of interstate transportation of stolen funds.

 In his plea, Elzea admitted the crime occurred while he was controller and part owner of Pur-O-Zone, a janitorial and cleaning equipment business located in Lawrence. In 2004, Elzea began embezzling funds from Pur-O-Zone and his three business partners who also owned part of the business. The crime came to light in May 2014 when one of the partners was contacted by a vendor about not having received a check. The partners discovered numerous unauthorized checks signed by Elzea and made payable to Cardmember Service Chase Bank in Illinois.

In his plea, Elzea agrees to a forfeiture money judgment and order of restitution in the amount of $1 million.

 Sentencing is set for Dec. 19. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.

KANSAS CITY, KAN. – Indian tribes in Kansas are being awarded more than $1.3 million in public safety grants from the U.S. Dept. of Justice, U.S. Attorney Barry Grissom said today.

“Protecting public safety in Indian Country is a critical part of our goal to strengthen and sustain native communities in Kansas,” said U.S. Attorney Barry Grissom.

The grants, awarded through the Justice Department’s Coordinated Tribal Assistance program, include:

• Kickapoo Tribe in Kansas: $449,824 from the Violence Against Women Tribal Governments Program through the Office on Violence Against Women (OVW).
• Prairie Band Potawatomi Nation: $365,386 from the Comprehensive Tribal Victim Assistance Program through the Office for Victims of Crime (OVC).
• Sac and Fox Nation of Missouri in Kansas and Nebraska: $547,482 from the Violence Against Women Tribal Governments Program through the Office on Violence Against Women (OVW).

Nationally, the Justice Department has announced 169 grants in FY 2014 to American Indian tribes totaling more than $87 million to enhance law enforcement practices and sustain crime prevention and intervention efforts. The grants are awarded in purpose areas including public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, violence against women, juvenile justice and tribal youth programs.

WICHITA, KAN. – A Wichita man who arranged to sell an undercover buyer a pound of methamphetamine for $20,000 was sentenced Monday to 100 months in federal prison, U.S. Attorney Barry Grissom said.

 Wyatt Leedy, 36, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, Leedy admitted he and co-defendant Patrick C. Hains were arrested Jan. 14, 2014, at Pelican Point Apartments, 2150 N. Meridian, after a Wichita police officer working undercover paid them $20,000 for a pound of methamphetamine. In telephone conversations with the undercover officer, Leedy set up the meeting with Hains in which the money changed hands.

Co-defendants include: Patrick C. Hains, who was sentenced to 121 months in federal prison.
Jose Ramon Montelongo-Castrejon, who was sentenced to two years on federal supervised release.

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

TOPEKA, KAN. - A man was sentenced Monday to 84 months in federal prison for committing an armed robbery at a Topeka restaurant, U.S. Attorney Barry Grissom said.

Derick Renee Crawford, 24, Topeka, Kan., pleaded guilty to one count of robbery, one count of brandishing a firearm during the robbery and one count of unlawful possession of a firearm following a felony conviction. In his plea, he admitted he and co-defendant Travis Jeremy Coffman committed an armed robbery Aug. 18, 2013, at the Red Robin restaurant at 6230 S.W. 6th in Topeka.

Armed with a can of mace, Coffman ordered an employee inside the restaurant and forced her to retrieve money from the safe. Crawford remained outside holding the remaining employees as gunpoint. Crawford told the employees that he would kill anyone who called the police.

Co-defendant Travis Jeremy Coffman is set for sentencing Nov. 3.

Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared for their work on the case.

KANSAS CITY, KAN. – U.S. Attorney Barry Grissom of Kansas has been appointed to serve a two-year term on the committee that advises U.S. Attorney General Eric Holder.

Holder announced that Grissom and U.S. Attorney Mike Cotter, District of Montana, would be joining the Attorney General’s Advisory Committee.

“It’s a pleasure to welcome Barry Grissom and Mike Cotter as the two newest members of the Attorney General’s Advisory Committee, a group of U.S. Attorneys with whom I regularly consult on some of the most significant law enforcement and public safety issues facing our nation,” said Attorney General Holder. “I’m grateful for their service and leadership. I look forward to working closely with the entire AGAC as we all work together to protect and ensure justice for the American people.”

The AGAC, chaired by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York, represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of U.S. Attorneys. The committee has 20 members representing various federal judicial districts, geographic locations and U.S. Attorney’s offices of various sizes.

Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.

KANSAS CITY, KAN. – A Texas woman pleaded guilty Wednesday to defrauding four families that wanted to adopt children, U.S. Attorney Barry Grissom

Chrystal Marie Rippey, 34, Marshall, Texas, pleaded guilty to one count of wire fraud. In her plea, she admitted she devised a scheme in which she pretended to be pregnant. She contacted adoption agencies and individuals who wanted to adopt and said she was willing to give up her unborn children for adoption. She asked adoption agencies and individuals for money for rent, utilities, food and living expenses.

Couple No. 1: A Delaware couple moved Rippey into their home for a month. They took her on a two-week vacation on the beach and paid for her living expenses, new clothes, cell phone and food. She gave them a sonogram that she claimed showed her pregnancy with twins. In fact, she got the image from the Internet. Then she broke off contact with them.

Couple No. 2: A couple from Shawnee, Kan., put more than $22,000 in an escrow account to pay for Rippey’s living expenses. She told them false stories about her troubles with Child Protective Services and a fire that burned down the home of the birth father in order to get the couple to give her more money. Then she broke off contact with them.

Couple 3: Working with an adoption agency in Overland Park, Kan., Rippey contacted another couple that began providing support for her. They were shocked when they went to California to meet her and saw that she didn’t look pregnant.

Couple 4: Another couple ran up expenses for fees to an adoption agency in Texas as well as travel expenses in hopes of adopting twins from Rippey. Rippey claimed she had a son in the hospital and that she had not eaten in days in order to get money from the couple. But the couple refused her request because the adoption agency told them not to give her any money until she completed adoption paperwork.

Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 33 months followed by three years supervised release.

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. – A soldier at Ft. Riley was sentenced Wednesday for making false material statements to the Social Security Administration, U.S. Attorney Barry Grissom said.

James Scott Nickerson, 38, Ft. Riley, Kan., was sentenced to six months in prison followed by six months home confinement and three years of supervised release. He also was ordered to pay $71,734 in restitution to the SSA and an additional $250 to the United States Treasury for a stimulus payment he was not entitled to receive.

Nickerson pleaded guilty to one count of making a false official statement to a federal agency. In his plea, he admitted he was paid a total of $71,734 in disability benefits by the Social Security Administration that he was not eligible to receive. Beginning in October 2009, Nickerson applied for disability benefits under the Wounded Warrior Program. He claimed he was unable to work because of “organic mental disorders” he developed while serving a deployment in Iraq.

While receiving disability benefits, he worked full time for the Army doing various duties, including serving as a platoon sergeant while he claimed to be disabled. He also supervised other soldiers during this period. Nickerson attempted to conceal his actual work activity from SSA by claiming he worked no more than 20 hours a week. On three separate occasions, the defendant completed Work Activity Reports, documents used by SSA to determine if a beneficiary is eligible for disability benefits. On each of these occasions he was asked to identify his supervisors so that SSA could verify his work activity. On all three occasions, he identified persons other than his supervisors. In the plea agreement, the defendant admitted that on a Work Activity Report he completed on Sept. 6, 2010, he falsely reported to SSA that one of his subordinates was his supervisor. He admitted that this was a false material statement to a federal agency. 

Grissom commended the Office of the Inspector General for the Social Security Administration and Special Assistant U.S. Attorney Trey Alford for their work on the case.

WICHITA, KAN. – A federal indictment returned today in Wichita seeks the forfeiture of a business jet after the man flying the plane was arrested in July at the airport in Iola, Kan., U.S. Attorney Barry Grissom said.

Kenneth E. Weaver, 58, Denver, Colo., is charged in a superseding indictment with one count of possession with intent to distribute more than 50 kilograms of marijuana, one count of conspiracy to distribute marijuana, and one count of interstate travel in furtherance of drug trafficking.

The indictment seeks the forfeiture of a 1979 Israel Aircraft Industries Model 1124 jet aircraft, a 2007 Bentley Continental GT-C automobile and more than $450,000 in cash seized Aug. 8, 2014, in Sylmar, Calif.

Weaver was arrested July 11, 2014, after members of the Allen County Sheriff’s Office, the Wilson County Sheriff’s Office, the Kansas Highway Patrol and the Drug Enforcement Administration executed a search warrant on his plane and seized a load of marijuana.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the possession count, a penalty of not less than 10 years and a fine up to $4 million on the conspiracy count, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Allen County Sheriff’s Office, the Wilson County Sheriff’s Office, the Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

OTHER INDICTMENTS

Ryan B. Schmidt, 34, Wichita, Kan., is charged with two counts of robbery, two counts of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction. The robberies are alleged to have occurred Sept. 4, 2014, and Aug. 19, 2014, in Wichita, Kan.

The indictment alleges that on Sept. 4, 2014, Schmidt entered the Gessler’s Drug Store at 4817 E. Douglas, pointed a handgun at an employee, and said, “I want your opiates.” The employee gave him seven bottles of hydrocodone and three bottles of promethazine.

The indictment also alleges that on Aug. 19, 2014, Schmidt entered the Parklane Pharmacy at 530 S. Oliver, pointed a handgun at an employee and demanded narcotics. The employee gave him two bottles of oxycodone and $120 in cash.

Upon conviction, the crimes carry the following penalties: Robbery: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Brandishing a firearm: A penalty of not less than five years and a fine up to $250,000 on each count.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.

The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

Justen L. Marks, 25, Wichita, Kan., is charged with one count of attempting to pass 15 counterfeit bills at the Walmart store at 501 E. Pawnee, and one count of possessing counterfeit currency. The crimes are alleged to have occurred Feb. 22, 2014, in Wichita, Kan.

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

Kevin Hamill, 26, Garden City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred June 2, 2014, in Finney County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Garden City Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

Silvia Clemente-Rojo, 41, a citizen of Mexico, is charged with two counts of perjury, one count of buying a counterfeit Social Security card and one count of aggravated identity theft. The crimes are alleged to have occurred in September 2013 in Finney County, Kan.

If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count of perjury and on the count of buying a counterfeit Social Security card, and a mandatory consecutive two-year sentence on the aggravated identity theft count. The Kansas Department of Revenue and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Saul Garcia-Hernandez, 38, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 27, 2014, 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’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Guillermo Amparan-Mendoza, 38, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 27, 2014, 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’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

 Leoga Beltran-Esquivel, 29, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 28, 2014, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Mona Furst is prosecuting.

Derik E. Steele, 29, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of a firearm by a user of controlled substances, one count of possession of methamphetamine, and one count of possession of marijuana. The crimes are alleged to have occurred June 8, 2014, in in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the firearm count and the ammunition count, and a maximum a year and a fine up to $250,000 on each of the misdemeanor drug possession counts. The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is investigating.

Juan Enrique Esguival-Meza, 48, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 11, 2014, 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’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Luis Ramon Carrera-Morales, 59, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. HE was found Sept. 11, 2014 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’s 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.

WICHITA, KAN. A Wichita man was sentenced Monday to two years federal prison for counterfeiting, U.S. Attorney Barry Grissom said.

Billy J. Antrobus, 25, Wichita, Kan., pleaded guilty to one count of manufacturing counterfeit currency. In his plea, he admitted he counterfeited four $50 bills, 27 $20 bills, five $100 bills, and four sheets of uncut $20 bills.

Co-defendants include: Harvey D. Salisbury, who was sentenced to two years.
Dustelia D. Watts, who is set for sentencing Oct. 6.

Grissom commended the Department of Homeland Security and Assistant U.S. Attorney Alan Metzger for their work on the case.

HUTCHINSON, KAN. U.S. Attorney Barry Grissom will speak during Constitution Day on Wednesday, Sept. 17, at Hutchinson Community College.

Grissom’s speech will be titled, “The Constitution, the Bill of Rights and Beyond.” The presentation will begin at 10:20 a.m. in the Shears Technology Center on the Hutchinson Community College campus, 1300 N. Plum in Hutchinson.

Constitution Day is an annual event recognizing the signing of the U.S. Constitution in September 1787.

Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.

TOPEKA, KAN. - The former president of the American Federation of Government Employees Local Union 906 pleaded guilty Monday to embezzling more than $51,000 from union members in Topeka and Waco, Texas, U.S. Attorney Barry Grissom said.

Timothy Sanchez, 40, Topeka, pleaded guilty to one count of embezzlement. In his plea, he admitted the crimes occurred while he was president of the labor union, which represents approximately 200 active members who are employed at the Veterans Administration Health Resource Center in Topeka and Waco.

While Sanchez served as president, he embezzled funds from the union by making unauthorized debit card charges for expense reimbursements, writing unauthorized checks for his own benefit, and filing false meeting minutes and annual financial reports with the Department of Labor to conceal his embezzlement.

Sentencing is set for Nov. 25. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.  The U.S. Department of Labor Office of Labor-Management Standards investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Barry R. Grissom, United States Attorney for the District of Kansas, announced that law enforcement officers and victim service providers from throughout a multi-state region are in Kansas City, Mo., this week to attend the 11th annual Protect Our Children Conference at the Airport Hilton in Kansas City, Mo., from Sept. 10 to 12, 2014.

The Protect Our Children provides training for those who are in the trenches combating Internet crimes against children, child exploitation, child sexual assault, and child abduction. Dickinson, Grissom and Kansas City Police Chief Darryl Forte welcomed conference attendees this morning.

The three-day conference, which is hosted by United States Attorneys in Missouri, Kansas, Iowa, Nebraska, Illinois, and Indiana, rotates among cities each year. The event provides a multi-disciplinary approach for law enforcement, medical and mental health and victim service providers. Experts and practitioners present a comprehensive strategy to protect children and seek justice on their behalf.

The overall goal of the 11th Annual Protect Our Children Conference is to increase community awareness, improve investigative and prosecutorial practices, and provide resources to all participants. This year’s conference showcases presenters from across the country specializing in the investigation and prosecution of crimes against children and the treatment of child victims.

A special keynote address will be presented by Christopher Baughman, host of MSNBC’s new series on human trafficking, at 8:30 a.m. Wednesday, 10, 2014.

Prior to Baughman’s retirement, he headed up the Pandering Investigation Team (PIT) and Human Trafficking Task Force for the Las Vegas Police Department, where his team arrested and convicted several of the city’s wealthiest and most violent criminals. He teaches pandering investigations to other departments across the nation, including members of the FBI, IRS, and Federal Parole and Probation Agencies. He is also author of the best-selling true crime human trafficking series, “Off The Street.”

At 10:30 a.m. Friday, Sept. 12, 2014, closing keynote speaker Derek Clark will share his compelling personal testimony of the childhood trauma he endured and overcame, which has inspired thousands of people to overcome their own adversity. A published author and well-known expert in working with troubled children and youth, he will also share insight and training to equip us for dealing with young victims.

Plenary speakers will address such topics as “Trauma and Recovery,” “Neurobiology of Trauma,” and “Cyberbullying.” Sixteen workshops feature separate tracks with experts and topics that are specifically relevant to law enforcement, health care/medical, or victim providers. Special elective workshops will also be offered on a diverse range of topics.

Most of the conference sessions are open to the media. More information about the Protect Our Children Conference can be found online at http://www.pocconference.com.

TOPEKA, KAN. - U.S. Attorney Barry Grissom released the following statement Tuesday on the shooting death of Cpl. Jason Harwood of the Topeka Police Department, who was the third Topeka officer to be shot and killed in the line of duty in the past 21 months.

“Our hearts go out to the family of Cpl. Jason Harwood and to the men and women of the Topeka Police Department.”

“The tragic fact is that every year dozens of police officers in this nation are killed by gunfire. The FBI’s preliminary statistics for 2013 show that 27 officers were feloniously killed in the line of duty in 2013. Offenders used firearms in 26 of the 27 deaths.”

“In many cases, officers are killed by armed felons. That is one reason our office will continue to put a top priority on the federal prosecution of convicted felons who possess firearms. If we can save one life, the effort will have been worth it.”

KANSAS CITY, KAN. - A man who managed a Chinese restaurant in Kansas City, Mo., pleaded guilty Tuesday to conspiring to harbor workers who were in the United States illegally, U.S. Attorney Barry Grissom said.

Quan Liu, 26, Kansas City, Mo., pleaded guilty to one count of conspiracy to harbor aliens who were unlawfully in the United States. In his plea, he admitted the crime occurred while he was the manager of Wei’s Super Buffet #2 at 7531 Wornall Road in Kansas City, Mo. The restaurant was owned by a company based in Olathe, Kan., which was headed by co-defendant Wei Liu.

When investigators served a search warrant at a three-bedroom apartment that Quan Liu leased near the restaurant they found six illegal aliens residing there. One had overstayed a B-2 visa, one previously had been deported, one previously had been found unlawfully in the United States and had returned to his country voluntarily, and three others were illegally present in the United States.

Co-defendants include: Wei Liu, who is awaiting trial.
Xiang Liu, who is awaiting trial
Jin Hui Liu, who is set for a change of plea hearing Sept. 12.
Huiming Liu, who is awaiting sentencing.
Bin Liu, who is awaiting trial.
Huiqing Liu, who is awaiting trial.

Quan Liu will be set for a later date. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Assistant U.S. Attorney Scott Rask for their work on the case.

KANSAS CITY, KAN. – Federal indictments were returned Wednesday charging that 16 people who worked for Keebler Company in Kansas City, Kan., fraudulently received unemployment benefits, U.S. Attorney Barry Grissom.

The indictments allege that while working for Keebler each of the defendants received unemployment benefits by submitting false reports to the Kansas Department of Labor.

Defendants, who are charged in separate indictments with one count each of theft of government funds and one count of bank fraud, include the following:

Angie Raffurty, 43, Blue Springs, Mo., who is alleged to have fraudulently received $10,488 in benefits.
Bobby Grant, 49, Kansas City, Kan., who is alleged to have fraudulently received $31,466.
Darrell Haywood, 32, Kansas City, Kan., who is alleged to have fraudulently received $10,564.
Debbie Gleghorn, 55, Kansas City, Kan., who is alleged to have fraudulently received $10,633, Durail Bailey, 36, Kansas City, Kan., who is alleged to have fraudulently received $12,693.
Herman Callands, Jr., 46, Kansas City, Kan., who is alleged to have fraudulently received $13,766.
James Mango, 50, Kansas City, Mo., who is alleged to have fraudulently received $17,893
Julian Emery, 38, Blue Springs, Mo., who is alleged to have fraudulently received $15,788.
Maxine Nelson, 44, Kansas City., Mo., who is alleged to have fraudulently received $12,795.
Randy Laughlin, 55, Blue Springs, Mo., who is alleged to have fraudulently received $27,388.
Rodney Taylor, 44, Kansas City, Mo., who is alleged to have fraudulently received $15,598.
Rodrigo Diacono, 35, Lenexa, Kan., who is alleged to have fraudulently received $10,168.
Tina Cooper, 48, Kansas City, Mo., who is alleged to have fraudulently received $18,796.
Donald Barnett, 42, Independence, Mo., who is alleged to have fraudulently received $11,490.
Edith Clark, 53, Kansas City, Mo., who is alleged to have fraudulently received $12,820.
Kaven Daniels, 43, Kansas City, Mo., who is alleged to have fraudulently received $12,633.

 If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the theft of government funds, and a maximum penalty of 30 years and a fine up to $1 million on the bank fraud charge. The Kansas Department of Labor, the U.S. Department of Labor Employee and Benefits Security Administration, the U.S. Department of Labor – Office of Inspector General and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

OTHER INDICTMENTS

K. Kevin James, 57, Lenexa, Kan., and his son, Charlie M. James, 35, Desoto, Kan., are charged with wire fraud and other counts.

K. Kevin James is charged with 10 counts of bank fraud, eight counts of wire fraud and one count of conspiracy to defraud the United States.
Charlie M. James is charged with four counts of wire fraud, one count of conspiracy to defraud the United States, three counts of tax evasion and one count of bankruptcy fraud.

The indictment alleges the crimes were committed while the defendants were owners of KC United, LLC, a holding company for five construction companies that was located in Kansas City, Kan. One of the companies owned by KC United was Miller Paving and Construction.

The indictment alleges that K. Kevin James and others obtained business loans from Bank of Blue Valley by hiding and falsely representing the failing financial condition of KC United. The fraud resulted in a loss to the bank of more than $877,382. The bank received federal funds from the U.S. Treasury’s Troubled Asset Relief Program (TARP). The indictment also alleges the defendants diverted prevailing wage fringe benefit payments for employees for other purposes.

“The Bank of Blue Valley suffered losses on the loans and was unable to repay TARP or their quarterly TARP dividend, and eventually sold the loans at a loss of $877,000,” said Christy Romero, Special Inspector General for Tarp (SIGTARP).”

Upon conviction, the crimes carry the following penalties: Bank fraud: A maximum penalty of 30 years in federal prison on each count and a fine up to $1 million.
Wire fraud: A maximum penalty of 20 years on each count and a fine up to $250,000.
Conspiracy to defraud the United States: A maximum penalty of five years and a fine up to $250,000.
Tax evasion: A maximum penalty of five years and a fine up to $250,000.
Bankruptcy fraud: A maximum penalty of five years and a fine up to $250,000.

The Internal Revenue Service and Special Investigator for the Troubled Asset Relief Program investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.

Charles R. Waits, 53, Lenexa, Kan., is charged with one count of bank fraud. The crime is alleged to have occurred in 2010 in Johnson County, Kan.

The indictment alleges that while Waits was the managing member of a corporation that operated the Kansas City Sports Grill he provided false financial information to the Community America Credit Union in order to obtain $605,000 in business loans.

The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

Damon Harlin, Jr., 35, 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 Aug. 20, 2014, in Kansas City, Kan.

If convicted, he faces a penalty of not less than 15 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.

Timothy R. Whittington, Jr., 34, Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 16, 2014, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.

Christopher S. Virgil, 42, formerly of Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 27, 2012, in Leavenworth, 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 Terra Morehead 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 co-owner of a defunct Missouri construction company pleaded guilty Wednesday to defrauding a federal program that set aside contracts for businesses owned by service-disabled veterans, U.S. Attorney Barry Grissom said.

Michael J. Parker, 40, Blue Springs, Mo., pleaded guilty to one count of conspiracy to commit fraud against the United States, one count of major program fraud and one count of wire fraud. In his plea, he admitted that he and his father, co-defendant, Warren K. Parker, made false claims in order for their company, Silver Star Construction LLC of Blue Springs, Mo., and Stilwell, Kan., to obtain more than $6.7 million in contracts from the Veterans Administration and more than $748,000 in contracts from the Department of Defense. The contracts were awarded under the Service-Disabled Veteran-Owned Small Business Program.

After an extensive investigation, federal agents determined that in fact Warren Parker never was classified as a service-disabled veteran by the Veterans Administration or the Department of Defense.

Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 51 months in federal prison and restitution.

Co-defendants include: Warren K. Parker, who was sentenced to 87 months.
Mary Parker, who is set for jury trial Oct. 6.
Thomas Whitehead, who is awaiting sentencing.
Silver Star Construction, LLC, which is set for trial Oct. 6.            

Grissom commended the Small Business Administration's Office of Inspector General; the Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division and the General Services Administration's Office of Inspector General; and Assistant U.S. Attorney Tris Hunt for their work on the case.

TOPEKA, KAN. – A Topeka man on Tuesday pleaded guilty to committing robberies at businesses in Topeka and Manhattan, U.S. Attorney Barry Grissom said.

Christopher James Wilhoite, 26, Topeka, Kan., pleaded guilty to two counts of commercial robbery and one count of unlawful possession of a firearm in furtherance of a robbery. In his plea, Wilhoite admitted that on March 29, 2014, he robbed a clerk at Car Toyz, 5849 S.W. 21st in Topeka. The store sells mobile audio, video and vehicle security systems.

Wilhoite entered the store, browsed for a few minutes, and told the clerk: “I know what I want – the money.” He took money from the register and from the clerk’s wallet before loading some electronic items into a bag. When he noticed a surveillance camera, he forced the clerk to show him the recorder and threw that in the bag, too. Then he fled the store. Investigators later found his fingerprints in the store.

Wilhoite also admitted that on April 16, 2014, he robbed the Dollar General at 2321 Tuttle Creek Boulevard in Manhattan, Kan. He pointed a gun at a clerk and said: “Hey, I need money.” He put the clerk and another employee in a bathroom at gunpoint and told them to count to 200 while he fled the store.

Sentencing is set for Nov. 21. Both parties have agreed to recommend a sentence of 12 years in federal prison.

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

KANSAS CITY, KAN. - A Kansas City man was sentenced Thursday to life in prison in a federal drug trafficking case, U.S. Attorney Barry Grissom said.

Christopher Craig, 32, Kansas City, Mo., pleaded guilty to one count of conspiracy to distribute cocaine, crack cocaine and marijuana, and two counts of using a phone in furtherance of drug trafficking. He admitted that he was part of a drug trafficking ring that operated from January 2006 to December 2012 in Kansas City, Kan.

Prosecutors argued for a longer sentence on the grounds that Craig planned and participated in an attempted robbery on Aug. 14, 2012, that resulted in the shooting death of one of the robbers. Officers were called to Research Medical Center when a shooting victim was dropped off at the emergency room entrance. The victim died of three gunshot wounds to his upper body.

Investigators learned that Craig had planned the robbery. He had taken the victim and another man to a south Kansas City location where a large sum of money and drugs were kept. During the robbery, the target of the robbery shot the victim. Craig was a member of the MOB street gang.

Grissom commended the Kansas City, Kan., Police Department, the Kansas City, Mo., Career Criminal Squad, the FBI, Assistant U.S. Attorney Sheri McCracken and Special Assistant U.S. Attorney Trent Krug for their work on the case.

TOPEKA, KAN. - The owner of a Topeka jewelry store appeared in federal court Thursday on charges of knowingly buying stolen jewelry that he melted and sold for more than $430,500 as scrap gold, U.S. Attorney Barry Grissom said.

John O. Dasher, 53, Silver Lake, Kan., is charged with one count of interstate transportation of stolen property and 32 counts of money laundering. The indictment alleges that while he owned and operated The Diamond House at 1801 S.W. Gage Boulevard in Topeka he knowingly purchased stolen jewelry from individuals who committed home invasions in and around Topeka.

He purchased the jewelry at a fraction of its actual value and melted it down to sell as gold scrap. He sent the gold through the U.S. Postal Service to precious metal wholesalers including Pop Gems International, Gold Empire and Coinex, Inc. From November 2008 to April 2013, the companies paid Dasher a total of more than $430,500 for scrap gold.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge of interstate transportation of stolen goods, and a maximum penalty of 20 years and a fine up to $500,000 on each money laundering count.

The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

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

TOPEKA, KAN. – Two Topeka residents were indicted in federal court Wednesday on robbery charges, U.S. Attorney Barry Grissom said.

George Christopher Walton, Jr., 37, who is in custody in the Shawnee County Jail, and Tashjaun Desanic Walton, 18, who is in custody in the Shawnee County Jail, are charged with one count of robbery. In addition, George Walton is charged with one count of brandishing a firearm during a robbery, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Aug. 4, 2014, in Topeka, Kan.

The indictment alleges that on Aug. 4, 2014, the defendants robbed the Wendy’s restaurant at 728 Southwest Topeka Boulevard in Topeka. The indictment alleges that George Walton brandished a firearm during the robbery.

Upon conviction, the crimes carry the following penalties: Robbery: A maximum penalty of 20 years in federal prison and a fine up to $250,000.
Brandishing a firearm: A penalty of not less than seven years and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: 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.

OTHER INDICTMENTS

James W. Duke, 51, currently of Converse, Texas, is charged with three counts of aggravated abuse of a child, two counts of sexual abuse of a minor, two counts of sexual exploitation of a child, and one count of transporting child pornography across state lines. The crimes are alleged to have occurred at various times from January 1997 to December 2000 on the Fort Riley military installation.

Upon conviction, the crimes carry the following penalties: Aggravated sexual abuse of a child: A maximum penalty of life in federal prison and a fine up to $250,000 on each count.
Sexual abuse of a minor: A maximum penalty of 15 years and a fine up to $250,000 on each count.
Sexual exploitation of a child: Not less than 10 years and not more than 20 years and a fine up to $250,000 on each count.
Transporting child pornography: A maximum penalty of five years and a fine up to $250,000.

 The FBI investigated. Assistant U.S. Attorney Christine Kenney and Special Assistant U.S. Attorney Robin Graham are prosecuting.

 Alfredo Rodriguez, 31, Kansas City, Kan., is charged in a superseding indictment with one count of conspiracy to distribute 5 kilograms or more of cocaine and one count of attempting to intimidate a witness in a federal criminal case. The drug trafficking crime is alleged to have occurred from April 2011 to December 2012 in Wyandotte County, Kan. The other crime is alleged to have occurred July 7, 2014.

If convicted, he faces a penalty of not less than 10 years and not more than life and a fine up to $10 million on the conspiracy charge, and a maximum penalty of 20 years and a fine up to $250,000 on the other counts. The FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

 Kevin Smith, 31, Richmond, Kan., Justin Ingram, 29, Ottawa, Kan., and Elizabeth Diane Lewis, 33, Ottawa, Kan., are charged with one count of conspiracy to possess with intent to distribute methamphetamine. In addition, Ingram and Lewis are charged with one count of maintaining a residence at 707 S. Ash in Ottawa, Kan., in furtherance of drug trafficking; and Ingram is charged with one count of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred at various times from Jan. 1, 2014, to Aug. 12, 2014.

 The defendants initially were charged in a criminal complaint filed Aug. 13, 2014, in U.S. District Court in Kansas City, Kan. The complaint alleged that during the investigation Ingram told another person that he had Semtex explosives and wanted to blow up a house where the mother of a detective with the Ottawa Police Department lived.

 Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than 10 years and not more than life and a fine up to $10 million.
Unlawful possession of a firearm by a user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
Maintaining a drug involved premises: 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.

 Noe Beltran, 33, Wichita, Kan., Cecilia Gomez, 49, Wichita, Kan., German Fernandez-Hernandez, 52, Wichita, Kan., and Ramona Gomez-Hernandez, 43, are charged with drug trafficking. The crimes are alleged to have occurred in 2014 in Sedgwick County, Kan.

Beltran is charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute 21 pounds of methamphetamine.

 Gomez is charged with one count of conspiracy to distribute methamphetamine, count of possession with intent to distribute 21 pounds of methamphetamine, and one count of conspiracy to distribute two pounds of methamphetamine.
Fernandez-Hernandez is charged with one count of conspiracy to distribute two pounds of methamphetamine and five counts of distributing methamphetamine.
Gomez-Hernandez is charged with one count of possession with intent to distribute 21 pounds of methamphetamine.

 Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than 10 years in federal prison and a fine up to $10 million.
Possession with intent to distribute 21 pounds of methamphetamine: Not less than 10 years and a fine up to $4 million.
Distribution of methamphetamine: A maximum penalty of 20 years and a fine up to $1 million; or a penalty of at least five years and not more than 40 years and a fine up to $5 million, depending on the quantity.

The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst 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 former technology director for the City of Lenexa appeared in U.S. District Court here Monday on charges of wire fraud and theft, U.S. Attorney Barry Grissom said.

Andrew L. Davey, 44, Overland Park, Kan., is charged with five counts of wire fraud and one count of theft of government funds. The indictment alleges that Davey used city funds to buy electronic devices that he then sold on e-Bay. The indictment alleges Davey was responsible for stealing more than $98,800 worth of merchandise from the city including digital cameras and Apple MacBook computers.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each wire fraud count, and a maximum penalty of 10 years and a fine up to $250,000 on the theft charge. The Lenexa Police Department and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

WICHITA, KAN. - The former owner of a Wichita massage parlor was sentenced Friday to five years in federal prison for harboring an undocumented Chinese woman and threatening to harm a law enforcement officer, U.S. Attorney Barry Grissom said.

Gary H. Kidgell, 45, Waltham, Mass., pleaded guilty to one count of harboring an alien who was illegally in the United States and one count of attempted obstruction of justice. In his plea, Kidgell admitted that in January 2011 he interviewed a Chinese woman to work at a massage parlor he owned in Wichita. Kidgell spoke to the woman through an interpreter because she did not speak English. He made the Chinese woman stay at his residence and pay rent while she was working at his massage parlor.

In January and February 2014 while Kidgell was in custody in the case he told other inmates at the Butler County Jail that he intended to harm a law enforcement officer who investigated the case unless his case was resolved the way he wanted.

Co-defendants include: Yan Zhang, 50, Wichita, Kan., who was sentenced to time served and five years supervised release.
Xinqing Tian, 45, who was sentenced to time served and two years supervised release.

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

WICHITA, KAN. – A Derby, Kan., man has been indicted on federal charges of creating dozens of false identities in order to qualify for discounts on the purchase of DVD and Blue-ray movies by joining the Disney Movie Club and Columbia House DVD Club and then re-selling the movies, U.S. Attorney Barry Grissom said today.

Harvey C. Self, 45, Derby, Kan., is charged with nine counts of mail fraud, one count of money laundering and two counts of tax fraud. The indictment alleges Self resold DVDs and Blue-ray movies on eBay and Amazon and collected payments using PayPal.

The indictment alleges the U.S. Postal Inspection Service has identified 28 different mailing addresses Self created at post offices or commercial carrier boxes in Derby, Kechi, Andover, Haysville, Peck, Benton, Winfield, Valley Center, Udall, Oxford, Clearwater, Mulvane, Wichita, Augusta and Goddard. The list of false names he is alleged to have used incudes Michael Wittman, Jamie Davis, Stephanie Vogel, Jossalyn Hanna, Phil Scott, Scott Philips, Greg Clark, Joe Green, Jimmy Jackson, John Foster, Will Enos, Kevin Griffin, Travis Powell, Jennifer Lewis, Kami Anderson, Savannah Clayton and Jessie Hannaself.

The indictment alleges that investigators seized 2,833 DVDs and Blu-ray discs when they served a search warrant at Self’s home in Derby.

If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on each count of mail fraud, a maximum penalty of 20 years and a fine up to $500,000 on the money laundering count and a maximum penalty of three years and a fine up to $100,000 on each tax fraud count. The FBI, the U.S. Postal Inspection Service, the Defense Criminal Investigative Service, Homeland Security Investigations and the Internal Revenue Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

OTHER INDICTMENTS

Chrystal M. Scherbarth, 30, Altoona, Kan., the former city clerk of the City of Altoona, is charged with three counts of bank fraud. The crimes are alleged to have occurred from June 2011 to November 2013 in Altoona.

The indictment alleges Scherbarth used her access to the city payroll system to embezzle money from the city. The indictment alleges she overpaid herself by raising her own salary, issuing unauthorized checks to herself and paying herself for vacation and sick leave she had not earned. The indictment also alleges the City of Altoona identified more than $36,000 worth of unauthorized charges on a credit card used by Scherbarth.

If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. The Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

Melchor Ramirez-Romero, 39, a citizen of Mexico who has been living in Liberal, Kan., is charged with one count of unlawfully re-entering the United States after being deported. He was found July 31, 2014, in Sedgwick County, Kan.

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

Auner Gumercindo Vail-Lucas, 30, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 7, 2014, in Allen County, Kan.

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

Teresa Magna, 51, Spring Valley, Calif., is charged with one count of distributing methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crime is alleged to have occurred Aug. 6, 2014, in Russell County, Kan

 If convicted, she faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the distribution charge, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.

Brandi Meadows, 31, Oklahoma City, Okla., is charged with one count of possession with intent to distribute methamphetamine, and one count of interstate travel in furtherance of drug trafficking. The crime is alleged to have occurred Aug. 11, 2014, in Sedgwick County, Kan.

If convicted, she faces a penalty of not less than 10 years and a fine up to $4 million on the possession count 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.

Crystal Zoe Amarillas-Norzagaray, 23, Tuscon, Ariz., and Pilar Angel Leon-Beltran, 35, Tuscon, Ariz., are charged in a superseding indictment with one count of conspiracy to distribute 103 kilograms of marijuana and one count of possession with intent to distribute 103 kilograms of marijuana. In addition, Leon-Beltran is charged with one count of aggravated illegal re-entry and one count of interstate travel in furtherance of drug trafficking. In addition, Amarillas-Norzagaray is charged with one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred Dec. 30, 2013, in Ellis County, Kan.

 Upon convictions, the crimes carry the following penalties: Conspiracy, possession with intent to distribute: A maximum penalty of 20 years and a fine up to $1 million.
Aggravated re-entry: A maximum penalty of 20 years and a fine up to $250,000.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000.

 The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

 Hector Manuel Briceno, 25, Paramount, Calif., is charged with one count of possession with intent to distribute methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred Aug. 17, 2014, in Sherman County, Kan.

If convicted, he faces a penalty of not less than 10 years and fine up to $4 million on the possession charge, and a maximum penalty of 5 years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. 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.

WICHITA, KAN. A Wichita area man was sentenced Monday to 110 months in federal prison for trading files over the Internet with a Missouri man who was producing child pornography, U.S. Attorney Barry Grissom said.

Jaime Menchaca, 34, Kechi, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that on Sept. 13, 2013, he sent an email containing child pornography to a Missouri man.

At sentencing, prosecutors argued that Menchaca knew the Missouri man was actively producing child pornography and he was hoping to swap for access to more of it. According to court records, Menchaca’s email said: “Would love to see more of (victim’s name withheld) and anything else you may have. Here are some pics and vids I hope you enjoy.”

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

WICHITA, KAN. A registered sex offender from Hamilton County, Kan., pleaded guilty Monday to a federal child pornography charge, U.S. Attorney Barry Grissom said.

Wade H. Dewey, 47, Syracuse, Kan., pleaded guilty to one count of possessing child pornography. In his plea, he admitted that on Aug. 2, 2013, in Syracuse he was found in possession of images and videos depicting child pornography. He obtained the child pornography via the Internet.

Dewey previously was convicted in 1999 in Pueblo, Colo., on a charge of criminal attempt to commit sexual assault on a child.

Sentencing is set for Nov. 3. Both parties have agreed to recommend a sentence of 20 years.

Grissom commended the Hamilton County Sheriff’s Office, Homeland Security Investigations, the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.

WICHITA, KAN. A Wichita man was sentenced Monday to six years in federal prison for mortgage fraud, U.S. Attorney Barry Grissom said. He also was ordered to pay more than $250,000 in restitution.

Manjur Alam, 47, Wichita, Kan., pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. In his plea, he admitted he led co-conspirators in a scheme to submit mortgage loan applications containing false statements, thereby defrauding Fannie Mae and Freddie Mac and the United States Department of Housing and Urban Development.

In some cases, Alam submitted false verification of rent for nominal buyers. In other cases he submitted a false letter of credit for nominal buyers. In each loan, Alam and the co-conspirators falsely represented that the homes would be a primary residence. In truth, they did not intend to live in the homes.

U.S. District Judge Monti L Belot determined the actual loss totaled more than $485,000. The judge also noted that at the time of the crime Alam was on federal probation for a similar offense and his realtor license had been suspended.

Co-defendants included:

Christopher Ginyard, 28, Wichita, who was sentenced to two years supervised release and $40,000 restitution.
Henry Pearson, Jr., 29, Wichita, who was sentenced to two years supervised release and $56,000 restitution.
Henry Pearson, Sr., Wichita, who was sentenced to two years supervised release and $55,180 restitution.
Bruce Dykes, 46, Wichita, who was sentenced to two years supervised release and $14,872 restitution.
Janice Young, 27, Wichita, who was sentenced to five years supervised release and $60,332 restitution.
Steven Pelz, 40, Wichita, Kan., was sentenced Monday to two years federal probation and $31,924 restitution.

Grissom commended the Department of Housing and Urban Development, the Federal Housing Finance Agency - OIG, the Internal Revenue Service and Assistant U.S. Attorney Aaron Smith for their work on the case.

KANSAS CITY, KAN. A Kansas City area business owner has been indicted on federal bank fraud charges, U.S. Attorney Barry Grissom said today.

Brenda Wood, 45, Leavenworth, Kan., was indicted Wednesday on five counts of bank fraud, one count of theft from an employee benefit program, and four counts of willful violations of the Employee Retirement Income Security Act.

The indictment alleges the crimes took place while Wood owned several businesses including one in Kansas City, Mo. -- Professional Cleaning and Innovative Building Services, Inc. (PCI)  -- and three in Bonner Springs, Kan. -- Action Real Estate Services, LLC; G&W Investments, LLC, and Riverview Crossings, LLC.

The indictment alleges Wood obtained loans for herself and her companies through Farmers Bank in Overland Park, Kan., by making false representations and submitting falsified documents to the bank. Among the allegations in the indictment are these:

• Wood obtained a loan on behalf of Riverview Crossings to purchase property in Bonner Springs in part by forging the signature of a second mortgage holder releasing the deed.
• Wood submitted falsified invoices totaling more than $100,000 to support fraudulent draws on the Riverview Crossings loan.
• Wood obtained a loan on behalf of PCI to buy property in Basehor, Kan., in which she fraudulently inflated the purchase price to make it appear the loan met the bank’s loan-to-value ratio requirements.
• Wood obtained a $350,000 line of credit in part by fraudulently representing to the lender that her company, PCI, was awarded a contract to provide cleaning services at an Internal Revenue Service building in Kansas City, MO. In fact, her company was not even a finalist for the contract.
• Wood diverted more than $200,000 from an escrow account for PCI to her personal account.
• Wood set up a 401(k) plan for PCI and embezzled more than $30,000 from the plan.
• Wood failed to file annual financial reports for the PCI 401(k) plan.

Farmer’s Bank received $12 million from the U.S. Treasury’s Troubled Asset Relief Program. In November 2012, the bank paid the U.S. Treasury approximately $11.4 million to redeem the funding, resulting in a shortfall of more than $500,000.

If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each of the bank fraud charges, a maximum penalty of five years and a fine up to $250,000 on the charge of theft from an employee benefit program, and a maximum penalty of 10 years and a fine up to $250,000 on each count of violating ERISA. The Department of Labor, Office of Inspector General, the Special Investigator General for the Troubled Asset Relief Program, the Department of Labor Employee Benefits Security Administration and the FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.

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

WICHITA, KAN. A Wichita man pleaded guilty Tuesday to bank robbery, U.S. Attorney Barry Grissom said.

Craig E. Applebee, 59, Wichita, Kan., pleaded guilty to one count of bank robbery. Charges filed in May in federal court in Wichita alleged that on May 15, 2014, he robbed the Credit Union of America at 212 S. Ridge Road. He gave the teller a note demanding money. After the teller put the money in a white plastic trash bag, Applebee fled the bank.

Police used a GPS tracking device hidden in the money stolen from the bank to locate Applebee’s car. They stopped the car and arrested him in the 3800 block of West Central.

Sentencing is set for Oct. 23. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.

TOPEKA, KAN. – A Topeka man pleaded guilty in federal court in Topeka Monday to a carjacking charge, U.S. Attorney Barry Grissom said.

Shaun Lee Kendall, 29, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, Kendall admitted that on Jan. 29, 2014, he and a co-defendant threatened a driver with violence in order to steal a 1999 Dodge Dakota truck.

Sentencing is set for Oct. 27. He faces a maximum penalty of 15 years in federal prison and a fine up to $250,000. Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.

Co-defendant Michael Richard Wilkins is awaiting trial.

WICHITA, KAN. - The former manager of a Wichita massage parlor was sentenced Monday to five years on federal supervised release for transporting a woman from China to work as a prostitute in Wichita, U.S. Attorney Barry Grissom said. She also will be required to register as a sex offender.

Yan Zhang, 50, Wichita, Kan., pleaded guilty to one count of interstate transportation for the purpose of prostitution. In her plea, she admitted that in 2009 she induced a Chinese woman to move to Wichita to work in a massage parlor and engage in prostitution.

In her plea, Zhang said she was married in 2004 to co-defendant Gary Kidgell. During the marriage, she worked at massage parlors in San Francisco and Phoenix, where she became familiar with the operation of massage parlors as fronts for prostitution. In 2009, she and Kidgell moved to Wichita to establish their own massage parlor. She worked giving massages and served as a manager because she was able to communicate with Chinese women who worked at the massage parlor.

Co-defendants are: Gary Kidgell, who is set for sentencing Aug. 22.
Xinqing Tian, 44, who was sentenced to two years supervised release.

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

KANSAS CITY, KAN. – A Johnson County man pleaded guilty in federal court Monday to taking part in a fraud scheme that cost the Bank of Blue Valley more than $877,000, U.S. Attorney Barry Grissom said.

Timothy P. Fitzgerald, 56, Leawood, Kan., pleaded guilty to one count of conspiracy to commit bank fraud. In his plea, he admitted the crime took place while he was chief financial officer of KC United, LLC, which was a holding company for five construction services companies located in Kansas City, Kan.

KC United was a loan customer of the Bank of Blue Valley. In 2008, KC United was losing money. Fitzgerald and other conspirators knew that KC United needed to show a profit in order to maintain its bank and bonding relationships. So Fitzgerald and others manipulated KC United’s quarterly financial statements to falsely reflect a profit. Fitzgerald delivered the falsified reports to the Bank of Blue Valley, which relied on the false information to renew the company’s line of credit. Fitzgerald and other conspirators also prepared annual financial statements that contained falsified profits and a cover letter falsely stating that an outside accounting firm had reviewed the statement. They placed the cover letter on the letterhead of an outside accounting firm.

On April 28, 2011, three of the companies owned by KC United filed for Chapter 11 bankruptcy. The Bank of Blue valley sold its position in the remaining outstanding loan to KC United, sustaining a loss of more than $877,000.

Blue Valley Ban Corp., the holding company for Bank of Blue Valley received more than $21 million in funding from the U.S. Treasury’s Troubled Asset Relief Program (TARP).

“Bank of Blue Valley did not repay TARP and missed 18 quarterly dividend payments totaling $4.9 million, money owed to taxpayers as a result of the bank holding TARP funds,” said Christy Romero, Special Inspector General for TARP (SIGTARP).

“Treasury sold its TARP investment in the bank at a principal loss of nearly $500,000, a loss in addition to uncollected TARP dividend payments,” Romero added.

Sentencing will be set for a later time. Fitzgerald faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Grissom commended the U.S. Department of Labor – OIG, the U.S. Department of Labor – EBSA, IRS Criminal Investigations, the FBI, the Special Investigator General for the Troubled Asset Relief Program investigated and Assistant U.S. Attorney Jabari Wamble for their work on the case.

WICHITA, KAN. A former insurance agent in Wichita pleaded guilty Tuesday to stealing from his clients, U.S. Attorney Barry Grissom said.

Jason Matthew Pennington, 42, Bel Aire, Kan., pleaded guilty to two counts of wire fraud and one count of attempted bank fraud. In his plea, he admitted the crimes occurred while he was an agent working for State Farm Insurance.

WIRE FRAUD (Count Two)

In 2000, Wendell and Marita Hill, who had purchased insurance policies from State Farm, became clients of Pennington after their former State Farm agent retired. In Nov. 2004, the Hills purchased a life insurance policy through Pennington valued at more than $3.4 million. The policy was issued by Phoenix Life Insurance Company, an insurance provider affiliated with State Farm Insurance.

In 2008, Pennington devised a scheme to defraud the Hills and Phoenix. On Feb. 29, 2008, he sent a fax to Phoenix Life Insurance Company requesting a loan of $105,000 on the Hills’ life insurance policy. The loan contained the forged signature of Brent Hill, who was trustee of the Hill Family Trust. Brent Hill did not make the request for the loan.

WIRE FRAUD: (Count Four)

In 2006, Marlene Brown, who had retired following a 37-year career with the Wichita Public Schools as a teacher, coach and school administrator, purchased a State Farm life insurance policy through Pennington. The policy was valued at $1.3 million.

In September 2009, Pennington contacted State Farm and changed the address for Marlene Brown’s insurance policy to his business address. He then sent a fax to State Farm making a withdrawal of $278,250 on the policy. Pennington forged Brown’s signature and requested the withdrawal without her knowledge.

When State Farm called him to ask why the money was to be sent to his office instead of Brown’s home, Pennington lied and told them Brown was his mother-in-law.

Marlene Brown died Oct. 27, 2009.

ATTEMPTED BANK FRAUD: (Count 45)

In February 2010, Pennington applied for a line of credit from State Farm Bank. In order to qualify for the credit, he did not report to the bank that he was required to pay $5,000 a month in child support and alimony to his first wife. He also falsely reported that his second wife was receiving an annual salary as an employee of his insurance office.

Sentencing is set for Nov. 3. Both parties have agreed to recommend a sentence of 42 months in federal prison.

Grissom commended the FBI, IRS - Criminal Investigation Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.

WICHITA, KAN. – Two Dodge City residents – one from Mexico and the other a United States citizen – have been indicted by a federal grand jury here for allegedly selling birth certificates and Social Security cards to undocumented aliens, and then driving them to Oklahoma to obtain state-issued ID cards, U.S. Attorney Barry Grissom said Thursday.

The two, Ronald Davila-Vega, 34, a Mexican national, Sindy [cq] Herrera-Pacheco, 54, a U.S. citizen, were indicted Wednesday on one count of document fraud, one count of transporting illegal aliens, one count of aiding the unlawful production of identification documents, and two counts of aggravated identity theft. Davila-Vega is scheduled to make a first appearance here at 11 a.m. Friday before U.S. Magistrate Judge Karen M. Humphreys. Herrera-Pacheco is being held in the Ford County jail and is expected to be transported to Wichita for a court appearance next week.

According to an affidavit filed in the case, Davila-Vega, himself a person who previously had been deported to Mexico, sold sets of documents for $1,000 to other undocumented aliens in the United States unlawfully so they could obtain employment at southwest Kansas meat packing plants. For another $1,000, Vega and Herrera-Pacheco would drive the buyers to driver’s license offices in Oklahoma so they could obtain a photo ID card. Many of the plants now require a photo ID for new hires, Grissom said.

Grissom said investigators and his office are working with Oklahoma officials in the case and to address the problem of fraudulently-obtained ID cards.

The case is being investigated by the Kansas Bureau of Investigation and Homeland Security Investigations in cooperation with the Dodge City Police Department. At least two of the persons who allegedly bought documents from Davila-Vega were teenagers from Central America.

The identification documents sold relate to United States citizens. The investigators are in the process of identifying those persons and notifying them that their identities have been compromised, he said.

If convicted, the defendants face a maximum sentence of 15 years on the document fraud charges, 5 years on the transporting of aliens charges and a mandatory two years in prison on the aggravated identity theft charges. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.

KANSAS CITY, KAN. – A man who worked for the Garmin Company in Olathe, Kan., has been sentenced to 33 months in federal prison for stealing boxes of GPS devices from the company, U.S. Attorney Barry Grissom said. He also was ordered to pay more than $2 million in restitution.

Terrence M. Heathington, 32, formerly of Olathe and currently of Atlanta, Ga., was sentenced Tuesday. In his plea to one count of mail fraud, he admitted that the crime was committed from March to September 2008 when he worked in Garmin International, Inc.’s warehouse in Olathe as a material handler. He shipped a large quantity of Garmin GPS devices to his personal address and the address of high school friends living in Atlanta. He and his friends sold the devices on eBay and to other individuals.

The thefts were discovered when a person who bought one of the stolen devices contacted the company. An audit revealed that boxes of GPS devices had been shipped to Heathington’s home in Ottawa and to addresses in Georgia, where Heathington had lived.

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. – A federal jury today convicted three men for their roles in a drug trafficking conspiracy that distributed millions of dollars’ worth of marijuana in the Lawrence area, the U.S. Attorney’s Office announced today. The government is seeking a money judgment of more than $16.9 million against the traffickers.

The men were found guilty on charges of conspiracy to distribute marijuana and other drug trafficking counts. The defendants are:

Los Rovell Dahda, 32, Lawrence, Kan.
Roosevelt Rico Dahda, 32, Lawrence, Kan.
Justin Cherif Pickel, 34, San Lorenzo, Calif.

During trial, prosecutors presented evidence that starting in 2008 law enforcement agencies began receiving information that Los Dahda was distributing marijuana in the Lawrence area. When Roosevelt Dahda was released from prison in November 2010, he joined his brother Los in the trafficking organization.

Prosecutors presented evidence that during the early days of the conspiracy the Dahdas bought marijuana from Mexico to sell in Lawrence. Over time, they turned to California for their supply. They purchased marijuana in California for $1,800 to $2,800 a pound and they sold it in the Lawrence area for $3,500 to $4,800 a pound. It is estimated that the traffickers distributed more than 8,000 pounds of marijuana from 2005 to 2012.

The Dahdas used a business they owned in Lawrence, Gran-Daddy’s BBQ at 1447 West 23rd Street, as well as other properties to receive, store and process marijuana for distribution.

Pickel worked for the Dahdas transporting marijuana from California to Lawrence. On April 25, 2012, he was stopped on Interstate I-80 in Nebraska. Investigators found 38 pounds of marijuana concealed in a false compartment in a toolbox/fuel tank. Pickel also set up an indoor marijuana grow operation in California that he maintained for the Dahdas. On June 13, 2012, investigators executed a search warrant at Pickel’s residence in California and seized more than 100 marijuana plants. 

The defendants were convicted on the following counts:

Los Rovell Dahda: Conspiracy (count 1), maintaining Daddy’s BBQ at 1147 W. 23rd in Lawrence in furtherance of drug trafficking (count 31), distributing marijuana (counts 26 and 36), using a telephone in furtherance of drug trafficking (counts 38, 39, 41, 42, 45, 46), possession with intent to distribute marijuana (counts 43, 49, 73, 85, 88 and 73.

Roosevelt Rico Dahda: Conspiracy (count 1), using a telephone in furtherance of drug trafficking (counts 42, 45, 53, 55, 70) possession with intent to distribute marijuana (counts 43, 49, 73) possession with intent to distribute within 1,000 feet of Holcomb Sports Complex in Lawrence (count 56).

Justin Cherif Pickel: Conspiracy (count 1),using a telephone in furtherance of drug trafficking (count 70).

 Sentencing will be set for a later date. The crimes carry the following penalties:

Conspiracy: Not less than 10 years and a fine up to $10 million. On this count, Roosevelt is facing a minimum of 20 years because of his prior convictions.
Maintaining a house or building in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $250,000.
Distributing marijuana within 1,000 feet of a school or playground: A maximum penalty of 10 years and a fine up to $500,000.
Distributing marijuana; possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000.
Taking part in an ongoing criminal enterprise: Not less than 20 years and a fine up to $2 million.

Agencies involved in the investigation and the arrest of defendants include the Douglas County Sheriff=s Office, the Johnson County Sheriff=s Office, the Lawrence Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service, the U.S. Postal Service, the Alameda County, Calif., Sheriff=s Drug Task Force, the Kansas Bureau of Investigation, the Lenexa Police Department, the Overland Park Police Department, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department and the Hayward, Calif., Police Department. Assistant U.S. Attorney Terra Morehead is prosecuting.

WICHITA, KAN. – A Butler county couple was indicted Wednesday on federal charges of stealing more than $1.5 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, 43, Augusta, Kan., and his wife, Lori A. Shryock, 50, Augusta, Kan., are charged with four counts of mail fraud. The indictment alleges the crimes occurred while Brent Shryock 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.

The defendants are alleged to have created four fictitious companies: LGR Technology, Innovative Software Solutions, DT Solutions and Microtech Solutions. The indictment alleges the initials in LGR Technology stood for “Let’s Get Rich.” The defendants used the fictitious companies to submit fraudulent invoices to PMMA, Presbyterian Manor, Aberdeen and Ashfield.

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

OTHER INDICTMENTS

Thomas F. Fee, 53, Hutchinson, Kan., is charged with one count of unlawful possession of a machine gun and one count of unlawful possession of a silencer. The crimes are alleged to have occurred July 4, 2014, in Reno County, Kan. Fee was arrested after a standoff with Hutchinson police.

If convicted he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the machine gun count and a maximum penalty of 10 years and a fine up to $10,000 on the other count. The Hutchinson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.

James Paul Bettes, Jr., 47, Wichita, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crime is alleged to have occurred May 16, 2014, in Wichita, Kan.

If convicted, 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. Homeland Security Investigations and the Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.

Marla R. McDonald, 25, Garden City, Kan., is charged with one count of Social Security benefit fraud, three counts of aggravated identity theft, one count of mail fraud and 11 counts of wire fraud. The crimes are alleged to have occurred in 2011 and 2012 in Finney County, Kan.

Upon conviction, the crimes carry the following penalties: Social Security benefits fraud: A maximum penalty of five years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to the underlying sentence.
Mail fraud: A maximum penalty of 20 years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.

The Social Security Administration – Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Jonearl Smith, 35, is charged with one count of possessing and discharging a firearm in furtherance of a crime of violence and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred July 12, 2014, in Wichita, Kan.

If convicted, he faces a penalty of not less than 10 years and not more than life, consecutive to any other count, and a fine up to $250,000 on the first count; and a maximum penalty of 10 years and a fine up to $250,000 on each of the other counts. The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

Diedra N. Sanders, 43, Wichita, Kan., who was a civilian employee at McConnell Air Force Base in Wichita, is charged with one count of theft of public money and three counts of submitting false reports to the federal government to cover up the theft. The crimes are alleged to have occurred in 2013 at McConnell Air Force Base.

The indictment alleges Sanders committed the crime while she was employed as a deputy dispersing officer. The indictment alleges the largest amount stolen at one time was $4,000.

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

 Coley R. Logan, 19, Fort Scott, Kan., is charged with one count of theft of mail from the U.S. Postal Service. The indictment alleges Logan was employed as a highway contract route driver and the crimes occurred in March and May 2014.

 If convicted, she faces a maximum penalty of five years and a fine up to $250,000. The U.S. Postal Service – Office of Inspector General investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

Alexander J. Pauler, 26, Wichita, Kan., is charged with unlawful possession of a firearm following a misdemeanor conviction for a crime of domestic violence. The crime is alleged to have occurred March 30, 2014, in Wichita, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

Darrell E. Finney, 24, Wichita, Kan., is charged with unlawful possession of a firearm by a user of controlled substances. The crime is alleged to have occurred April 19, 2014, in Wichita, Kan.

 If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is investigating.

Kim Householder, 53, Tribune, Kan., is charged with unlawfully possessing a silencer attached to a Ruger SR-22 rifle. The crime is alleged to have occurred April 4, 2014, in Tribune, 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 Michelle Jacobs is investigating.

Kenneth E. Weaver, 58, Denver, Colo., is charged with one count of possession with intent to distribute marijuana. The crime is alleged to have occurred July 11, 2014, in Allen County, Kan.

 The government is seeking a money judgment against Weaver of $1.4 million, which represents the proceeds of the crime.

If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

James Michael Post, 53, is charged with failing to register as required by Sex Offender Registration Notification Act. The crime is alleged to have occurred Oct. 28, 2012, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jason Hart is prosecuting.

 Juan Trejo-Martinez, 54, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 5, 2014, in Finney County, Kan.

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

 Juan Lopez-Morales, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 6, 2014, 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’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Pedro Garcia-Cordero, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 7, 2014, 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’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

 Israel Santamaria-Rodriguez, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 10, 2014, 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’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

 Kent Misak, 58, Wichita, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 15, 2014, in Sedgwick 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 $5 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

Ivan Bustamente-Zazueta, 30, Park City, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 15, 2014, in Sedgwick County, Kan.

 If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the methamphetamine charge, and a penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

 Adan Zazueta-Zambada, 35, is charged with one count of possession with intent to distribute methamphetamine, and one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. The crimes are alleged to have occurred July 15, 2014, Sedgwick County, Kan.

If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the drug charge and a maximum penalty of 10 years and a fine up to $250,000 on the immigration charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

Jose Oscar Arciniega-Soto, 37, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of firearms in furtherance of drug trafficking and one count of unlawful possession of firearms following a felony conviction. The crimes are alleged to have occurred July 15, 2014, in Wichita, Kan.

  If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the methamphetamine count; not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking; and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.

 Jose Maria Santa Cruz, 29, Tucson, Ariz.; Jonatan Jimenez, 20, a citizen of Mexico; Olivia Luisa Aguilar, 31, Tucson, Ariz;and Shalita Dontae Black, 26, Tucson, Ariz., are charged one count of possession with intent to distribute methamphetamine and one count of traveling from Arizona through Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred July 17, 2014, in Sedgwick County, Kan.

 If convicted, they face a penalty of not less than 10 years and a fine up to $10 million on the methamphetamine count, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Sedgwick County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch 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 Wichita chiropractor pleaded guilty Monday to defrauding health care insurers of more than $1.3 million, U.S. Attorney Barry Grissom.

Jeffrey D. Fenn, 33, Wichita, Kan., pleaded guilty to one count of health care fraud, two counts of aggravated identity theft and one count of tax evasion. In his plea, he admitted that from March 2011 to October 2013 he executed a health care fraud scheme through his businesses, including Wichita Health and Wellness, Fenn Chiropractic, P.A. and Wichita Pain Associates, P.A. Fenn submitted false claims to Medicare, Blue Cross/Blue Shield of Kansas and Coventry Health Care of Kansas, Inc., and the Federal Employees Health Benefits Program.

Chiropractors have a limited scope of practice. They are not allowed to perform injections, dispense drugs or supervise ARNPs and physicians. Fenn developed what he called an “integrated practice,” hiring physicians, advanced registered nurse practitioners and physical therapists and ostensibly having them perform procedures he was not qualified to perform. He misrepresented to the Kansas Board of Healing Arts that medical doctors had an ownership in his clinic. He used the names of physicians he employed to submit false claims for services.

Fenn fraudulently billed for nerve conduction tests, nerve block injections, subcutaneous infiltrate proceedings, fine needle aspirations and ultrasound procedures.

He also made fraudulent claims for business and personal income taxes. For example, he claimed a $9,400 business expense for purchasing a server. In fact, he spent the money to make a down payment on a residential lot in Wichita. He claimed a $15,100 expense for advertising. In fact he used the money to make a down payment on a ski boat.

Sentencing is set for Oct. 20. Both parties have agreed to recommend a sentence of five years in federal prison and restitution totaling more than $1.8 million.

Grissom commended Health and Human Services, Office of Inspector General, Office of Investigations, the FBI, Defense Criminal Investigative Service, the Food and Drug Administration, the Internal Revenue Service and Assistant U.S. Attorney Tanya Treadway for their work on the case.

KANSAS CITY, KAN. – A Kansas man who was part of a drug trafficking organization that distributed more than $1.6 million’s worth of cocaine, crack and marijuana in the Kansas City, Kan., area was sentenced Monday to 15 years in federal prison.

Rahmann Easley, 35, Kansas City, Kan., pleaded guilty to one count of conspiracy. In his plea, he admitted that he was a member of a drug trafficking organization headed by co-defendant Gregory Moore that operated in the Kansas City metropolitan area from 2006 through 2012. Easley and his brother, co-defendant Charles Easley, purchased cocaine from Moore. On March 27, 2012, a search of Easley’s car turned up 29.5 grams of cocaine, 24.6 grams of crack and 31.5 grams of marijuana.

Easley agreed to a money judgment against him of more than $1.6 million, which represents the proceeds of the crime.

Co-defendants who have been sentenced include:

Damian Mays: 220 months.
Frank Sharron Piper, III, 24, Kansas City, Kan: 135 months.
Charles Easley, 38, Kansas City, Kan.: 121 months.
Christopher Holliday, 26: 114 months.
Brenton Bassett, 38, Kansas City, Kan.: 84 months.
Michael D. Davis, 33, Kansas City, Kan., 40 months.
Johnie Mitchell, 60, Kansas City, Kan.: 35 months.
Oudre Durham, 40, Kansas City, Kan.: 30 months.

Grissom commended the FBI, the Kansas City, Mo., Police Department Career Criminal Squad, the Social Security Administration, the Kansas City, Kan., Police Department, Assistant U.S. Attorney Sheri McCracken, Special Assistant U.S. Attorney Trent Krug and Assistant U.S. Attorney Bruce Rhoades of the Western District of Missouri for their work on the case.