District of Kansas

TOPEKA, KAN. – A Mexican citizen who has been living in Emporia, Kan., has been indicted on charges of document fraud, U.S. Attorney Barry Grissom said today.

Olegaria Cruz-Juarez, 39, a citizen of Mexico, is charged with one count of unlawful possession of false identification documents and one count of aggravated identity theft.

She and her husband, Sergio Tapia-Martinez, have been under investigation as suspected distributors of identification documents to unauthorized workers in central Kansas, Grissom said. Tapia-Martinez was charged in a separate case with unlawfully re-entering the United States after being convicted of an aggravated felony and deported.

A criminal complaint filed in the case against Cruz-Juarez alleges that Kansas Department of Revenue agents arrested her for driver’s license fraud during a criminal investigation that revealed she had renewed her Kansas driver’s license claiming to be lawfully present in the United States when she was not. They served a search warrant at her home in Emporia, where they found another person’s Social Security card between the pages of a Bible in her bedroom. They also found a small notebook containing the names, dates of birth and Social Security number for 13 different identities. Agents ran the numbers against records maintained by the Social Security Administration and the Kansas Department of Revenue. Eight of the identities were used in the state of Kansas to obtain a driver’s license or identification card.

An affidavit filed in the case states that agents developed evidence that Cruz had previously purchased documents belonging to another person in order to obtain an identification card and secure employment. She needed to purchase documents that employers would accept. Agents also developed evidence that she had helped relatives and others do the same thing in the past. Immigration records indicate that Cruz is a Mexican national who was denied permanent resident status in Sept. 30, 2004, and is in the United States unlawfully.

If convicted, she faces a maximum penalty of 15 years in federal prison and a fine up to $250,000 on the document charge, and a mandatory two years to run consecutively to the underlying sentence and a fine up to $250,000 on the aggravated identity theft count. Immigration and Customs Enforcement, the Kansas Department of Revenue - Office of Special Investigations, the Emporia Police Department, the Lyon County Sheriff’s Office, the Social Security Administration - OIG and the Lyon County Attorney’s Office investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

OTHER INDICTMENTS

Joseph S. Buschbom, 30, Topeka, Kan., is charged with unlawful possession of a firearm after felony convictions. The crime is alleged to have occurred June 12, 2013, in Shawnee County, Kan.

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

Gabriel Chavez, 23, Dallas, Texas, is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 31, 2013, in Ellsworth County, Kan.

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

Omar Gonzalez-Nunez, 25, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being convicted of a felony and deported. He was found June 12, 2013, in Geary County, Kan.

If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.

Shawn Rene Pigorsch, 43, Abilene, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred Nov. 28, 2012, in Dickinson County, Kan.

If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Dickinson County Sheriff’s Office investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.

Kathy Rivera, 46, Ft. Riley, Kan., is charged with unlawful possession of a dangerous weapon with intent to do bodily harm. The crime is alleged to have occurred Jan. 15, 2013, on the Fort Riley Military Installation.

If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Ft. Riley Police investigated. Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Christine Kenney are prosecuting.

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

KANSAS CITY, KAN. – A professional hunter from Tennessee is set for a hearing in federal court today on a government motion accusing him of hunting in violation of his probation, U.S. Barry Grissom said today.

William “Spook” Spann, 50, Dickinson, Tenn, was sentenced in February to three years on supervised release for a misdemeanor Lacey Act violation in Kansas. He pleaded guilty to transporting across state lines a white-tailed deer that was unlawfully taken in Stafford County, Kan. As part of the probation he was prohibited from hunting for six months, admonished not to commit any further federal crimes and ordered to pay a $10,000 fine and $10,000 restitution.

On June 10, the federal probation office in Kansas filed a petition alleging Spann violated his probation by hunting in Tennessee and violating a Tennessee law against baiting wildlife. In court documents, Spann is alleged to have been caught on surveillance cameras hunting in Tennessee. Agents also monitored his use of social media. They found pictures on his Facebook page of Spann dressed in camouflage and posing with other hunters next to harvested turkeys. Although Spann is not accused of shooting a turkey, according to court documents he hunted by calling turkeys, carrying hunting equipment, carrying dead turkeys and placing feed as bait.

The government is proposing Spann have his probation revoked and he be ordered to serve 90 days in jail.

The U.S. Fish and Wildlife Services and Tennessee Wildlife Resource Agency investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

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

KANSAS CITY, KAN. – The founder of a Kansas-based insurance franchising business has pleaded guilty to filing an annual report with the Securities and Exchange Commission that contained misleading statements about the now-defunct company’s finances, U.S. Attorney Barry Grissom said today.

Robert D. Orr, 59, Denver, Colo, pleaded guilty to one count of making false statements in a report to the Securities and Exchange Commission. In his plea, he admitted that while he served as founder and non-executive chairman of the board of directors of Brooke Corporation, the company filed a 2007 annual report (Form 10-K) that presented a more financially robust position for Brooke Corporation’s investment in Brooke Capital Corporation than was supported by the actual financial conditions within the company. Orr knew that the report omitted material facts including the specific number of failed Brooke Capital Corporation franchise locations and the exact or total amount of financial assistance being provided by Brooke Capital Corporation to under-performing franchises.

Co-defendant Leland Orr is set for trial Feb. 24, 2014. Robert Orr is set for sentencing Oct. 7. The parties have agreed to recommend a sentence of three years probation and a fine of $48,000.

Grissom commended the FBI and Assistant U.S. Attorney Mike Warner for their work on the case.

WICHITA, KAN. – A former Kansas Air National Guard senior airman who was assigned to McConnell Air Force Base in Wichita has been convicted on a federal charge of wire fraud, U.S. Attorney Barry Grissom said today.

After a trial in U.S. District Court in Wichita, a jury found Eledria J. Bradley, 28, Wichita, Kan., guilty of one count of wire fraud.

During trial, prosecutors presented evidence that Bradley collected more than $50,000 in travel reimbursements by claiming she lived in Arizona while she was working at McConnell. Evidence showed that Bradley accessed her file via a virtual MPF, an online personnel system in which military members can access and change their personal information, and changed her residential address from Wichita to Chandler, Ariz. The change in address placed her outside the commuting distance for McConnell Air Force Base, As a result, she received lodging and per diem benefits to which she was not entitled from April 22, 2009, to April 23, 2011, totaling $54,992.

Sentencing will be set for a later date. She faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Air Force - OSI and Assistant U.S. Attorney Alan Metzger for their work on the case.

KANSAS CITY, KAN. – A Missouri woman has been sentenced to federal prison for sex trafficking in Kansas, U.S. Attorney Barry Grissom said today.

Danyelle M. Putman, 21, Independence, Mo., was sentenced to 37 months in federal prison. She pleaded guilty to one count of transporting a person in interstate commerce to engage in prostitution. In her plea, she admitted she was arrested Aug. 9, 2012, when the Special Investigations Unit of the Prairie Village Police Department conducted a prostitution sting. An investigator working undercover called a number on an Internet site and arranged with Putman for a woman to meet him in Prairie Village, Kan., for sex.

At approximately 8 p.m. that day, Putman and co-defendant Tony A. Rogers, Jr., left Independence, Mo., with a woman identified in the indictment as K.C., with the intent that K.C. would engage in prostitution. Police took K.C. into custody when Putman and Rogers dropped her off. After Putman and Rogers drove away, they were stopped and arrested.

Co-defendant Tony A. Rogers pleaded guilty and was sentenced to 57 months in federal prison.

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

KANSAS CITY, KAN. – A Kansas City, Kan., man has pleaded guilty to committing a series of robberies over ten days in Kansas City, Kan., Roeland Park and Fairway, U.S. Attorney Barry Grissom said today.

Llewellyn Richard, 45, Kansas City, Kan., pleaded guilty to committing the following robberies:

-- Boost Mobile, 3726 State Avenue, Kansas City, Kan., Dec. 21, 2012.
– Nationwide Cellular, 4314 Rainbow Boulevard, Kansas City, Kan., Dec. 21, 2012.
-- Dollar General Store, 2272 Quindaro, Kansas City, Kan., Dec. 24, 2012.
-- Family Dollar, 1251 Central Ave., Kansas City, Kan., Dec. 25, 2012.
-- Quick Service gas station, 7959 State Ave., Kansas City, Kan., Dec. 25, 2012.
-- Boost Mobile, 7640 State Ave., Kansas City, Kan., Dec. 26, 2012.
-- Cricket Store, 4635 Shawnee Drive, Kansas City, Kan., Dec. 27, 2012.
-- Sally's Beauty Supply, 5020 Roe Blvd., Roeland Park, Kan., Dec 28, 2012.
-- Cricket Wireless store, 840 Minnesota Ave., Kansas City, Kan., Dec. 29, 2012.
-- Dollar General, 2801 S. 47th, Kansas City, Kan., Dec. 29, 2012.
-- Family Dollar, 3129 State Ave., Kansas City, Kan., Dec. 30, 2012.
-- Russell Stover store, 2814 Shawnee Mission Parkway, Fairway, Kan., Dec. 30, 2012.

On Jan. 1, 2013, officers of the Kansas City, Kan., Police Department stopped Richard while he was driving a red GMC pickup. When the officers approached the vehicle, he drove off. He was arrested a short distance away after the pickup crashed.

Sentencing is set for Oct. 25. A plea agreement calls for both parties to recommend a sentence of 240 months in federal prison.

Grissom commended the Kansas City, Kan., Police Department and Assistant U.S. Attorney Terra Morehead for their work on the case.

WICHITA, KAN. – A former insurance agent has been charged in a federal indictment unsealed here today with stealing almost $2 million from policy holders, including a retired teacher known for her philanthropy, U.S. Attorney Barry Grissom said today.

Jason Matthew Pennington, 41, Bel Aire, Kan., is charged in a 51-count indictment alleging the former State Farm Insurance agent defrauded his customers and lied to beneficiaries to cover up the thefts. The counts include wire fraud and attempted wire fraud, money laundering, attempted bank fraud and making false statements to a financial institution. Pennington’s father, James L. Pennington, 65, Wichita, also is charged with four counts of filing false tax returns.

The indictment alleges that one of Pennington’s victims was Marlene Brown, who retired in 1994 following a 37-year career with the Wichita Public Schools where she served as teacher, coach and school administrator. She endowed the Marlene M. Brown Fund for the Department of Counseling, Leadership, Educational and School Psychology in the College of Education at Wichita State University.

The indictment alleges that before she died in October 2009 Brown purchased a life insurance policy from State Farm through Jason Pennington worth more than $1.3 million. She designated the Marlene M. Brown Revocable Trust as the owner and beneficiary of the policy.

In November 2008 Pennington processed a request to obtain more than $99,484 in cash from the policy. He deposited the money into his State Farm account at Home Bank & Trust Company in Wichita, and used the money to pay his personal expenses. In March 2009 Pennington entered into a contract to build a $590,000 home at 7972 E. Caribou Place in Bel Aire. By the time the house was completed in 2010, it cost approximately $650,000.

In loan application papers, Pennington failed to disclose that he was required to make monthly child support and alimony payments and that he had a line of credit and a mortgage. He also claimed as an asset an Individual Retirement Account that in fact belonged to Brown.

In June 2009, Personal Property Memoranda were purportedly created and signed by Brown allocating the percentages her charitable beneficiaries would receive and another bequeathing the remaining money to Pennington and his family and associates. Included was a bequeath of more than $1 million to Pennington.

In the following months, Pennington took money from Brown’s policy and changed the address on Brown’s insurance policy from Brown’s address to his own business address at 11040 W. Central, #108 in Wichita.

After Brown died in October 2009, Pennington collected several bags of documents from her home. He later lied to trust beneficiaries and provided them with false documents to cover up the fact he had taken the bulk of her estate for himself. He told beneficiaries that Brown’s 2002 Lincoln LS automobile had been given to a single mother. In fact, he gave the car to his father, James Pennington. He told beneficiaries that two television sets belonging to Brown were given to a young family. In fact, he planned to give the TVs to his father. He told beneficiaries that a baseball autographed by members of the New York Yankees would be given to Brown’s physician. In fact, he planned to keep the ball. He told beneficiaries that some of Brown’s estate was going to the Kansas Humane Society. In fact, the organization received no money. He told beneficiaries that part of Brown’s estate was going to Wichita State University. In fact, WSU did not receive the money.

Other victims included a couple from Garden Plain, Kan., who purchased a life insurance policy valued at more than $3.4 million through Pennington. Pennington fraudulently processed more than $1 million worth of loan requests even though the Hills were not aware the loans were being applied for in their names.

Upon conviction, the alleged crimes carry the following penalties: Wire fraud and attempted wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Mail fraud and attempted mail fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Money laundering: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.
Making a false statement to a financial institution: A maximum penalty of 30 years and a fine up to $250,000.
Filing false tax returns: A maximum penalty of three years and a fine up to $100,000 on each count.

The FBI and IRS - Criminal Investigation investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith are prosecuting.

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

WICHITA, KAN. – Two members of a Dodge City street gang have entered guilty pleas, becoming the tenth and eleventh defendants to plead guilty in a federal racketeering case, U.S. Attorney Barry Grissom said today.

Joshua Flores, 25, Dodge City, Kan., pleaded guilty to one count of brandishing a firearm in a crime of violence. Hernan Quezada, 20, Dodge City, Kan., pleaded guilty to one count of assault with a dangerous weapon, which was a violent crime in aid of racketeering.

In his plea, Joshua Flores admitted that he was a member of the Los Carnales Chingones street gang affiliated with the Norteno street gang on June 8, 2009, when he and other gang members who were armed with firearms robbed a victim named Isidro Raleas-Velasquez and other persons.

The victims were at their home at 1005 Avenue E in Dodge City when Flores and three other men affiliated with the Nortenos broke into their residence armed with firearms. One of the Nortenos grabbed a victim, struck him in the head with a firearm and took him into another room. Flores joined the other Nortenos in going through the house looking for other residents to rob. The other Norteno beat the victim he took into the other room. During the robbery, Raelas-Velasquez was struck with a firearm in the head, causing a large laceration. After the robbery, Flores and the other Norteno gang members divided up the proceeds of the robbery.

In his plea, Hernan Quezada admitted he was a member of the Diablos Viejos (DV) street gang affiliated with the Norteno street gang when on Feb. 5, 2012, he assaulted a victim named Reyes Bocanegra. Quezada was at 1200 Avenue I in Dodge City when he got into a fight with Bocanegra’s brother, Oscar. The fight was soon joined by Reyes Bocanegra, aiding his brother, and two other DV gang members, aiding Quezada. Quezada struck Reyes Bocanegra in the head with a bottle, causing a laceration to the top of his head.

Flores and Quezada admitted that robberies, assaults and other crimes were part of the way Norteno gang members built their reputations and kept their rivals at bay.

Flores is set for sentencing Sept. 9. He faces a penalty of not less than seven years in federal prison and a fine up to $250,000. Quezada is set for sentencing Sept. 13 He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.

Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.

WICHITA, KAN. – A Rice County woman has pleaded guilty in connection with a cattle fraud scheme, U.S. Attorney Barry Grissom said today.

Carrie L. Frederick, 37, Sterling, Kan., pleaded guilty to three counts of wire fraud. In her plea, she admitted she embezzled money while she worked for Sellers Farms, Inc., a livestock feeding operation in Lyons, Kan. She caused money to be sent from Sellers Farms’ accounts to Golden Belt Feeders, Inc., of St. John, Kan., to pay debts she owed from trading cattle when she worked for Golden Belt. There were three transactions of embezzled funds totaling more than $211,000.

Sentencing is set for Sept. 11. She faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each count. Grissom commended the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.

WICHITA, KAN. – A Montgomery County man has been sentenced to 262 months in federal prison for marijuana trafficking, U.S. Attorney Barry Grissom said today.

Rashon T. Johnson, 37, Independence, Kan., pleaded guilty to one count of conspiracy to distribute marijuana, three counts of attempted possession with intent to distribute marijuana, three counts of traveling in interstate commerce in furtherance of drug trafficking, one count of unlawful use of a telephone in furtherance of drug trafficking and one count of money laundering.

In his plea, Johnson admitted that from January 2009 to January 2011 he and others conspired to obtain marijuana from Texas to distribute it in Kansas and elsewhere. Members of the conspiracy traveled to Texas at the direction of Johnson to buy marijuana and bring it to Kansas.

Johnson admitted: – On Jan. 22, 2010, he provided $44,000 to co-defendant Jessica Savage to travel from Kansas to Texas to obtain marijuana and bring it back to Kansas. She drove to Dallas in a car he rented. She was not able to obtain marijuana because the money was stolen.
– On May 25, 1010, co-defendant Andrel Spates was arrested in Texas driving a 2008 BMW provided by Johnson that contained 350 pounds of marijuana.
– On Aug. 18, 2010, Johnson spoke to co-defendant Mansi Patel by telephone while Johnson was incarcerated in a Kansas prison. They talked about Patel traveling to Texas to buy marijuana.
– On Aug. 24, 2010, Mansi Patel and Andrel Spates traveled from Kansas to the airport in Tulsa planning to fly to Houston to buy marijuana. They had in their possession money Johnson had provided for the purchase of marijuana.
– In December 2009 Johnson and Patel used money derived from trafficking in marijuana to buy property near Kaufman, Texas valued at more than $123,000.

Co-defendants include: – William Lawrie, who was sentenced to 82 months in federal prison.
– Cornelius Colbert, who was sentenced to 24 months in federal prison.
– Andrel Spates, who was sentenced to 46 months in federal prison.
– Chadd Kasan Johnson, who was sentenced to 87 months in federal prison.
– Jamal Pilee Jemmerson, who was sentenced to a year and a day in federal prison.
– Jessica Leota Savage, who was sentenced to four months in federal prison.
– Cassandra Jonay Shafer, who was sentenced to one year probation.
– Mendi Lynn Carr, who was sentenced to 10 months in federal prison.
– Mansi Patel, who is set for sentencing July 1.

Grissom commended the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind for their work on the case.

WICHITA, KAN. – A Wichita man has been sentenced to 77 months in federal prison for bank robbery, U.S. Attorney Barry Grissom said today.

Billy L. Wilson, 52, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on March 1, 2013, he robbed the Commerce Bank branch at 456 N. Main Street in Wichita. Wilson gave the teller a note saying he was robbing the bank and warning her that he had a gun. He took the money and left the bank.

After surveillance photos taken during the robbery were made public investigators received information identifying Wilson as the robber and saying he lived in an apartment complex in the 800 block of south Hydraulic. Law enforcement officers attempted to locate him and were able to speak to him briefly on the phone. Later that day, he turned himself in at the Sedgwick County Jail.

Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.

TOPEKA, KAN. – A Topeka man has been sentenced to 30 months in federal prison on federal gun and drug charges, U.S. Attorney Barry Grissom said today.

Terrance Anthony Dean, Jr., 23, Topeka, Kan., pleaded guilty to one count of possession of marijuana with intent to distribute and one count of unlawful possession of a firearm after being charged with a felony. In his plea, he admitted that on Sept. 19, 2011, law enforcement officers were looking for him to serve an arrest warrant. On that day law enforcement officers saw him attempt to sell marijuana. They arrested him after a foot chase. In his car, they found marijuana and a 12 gauge shotgun. He was prohibited from possessing a firearm because he already had been charged in Douglas Country District Court with felony attempted robbery.

The 30-month federal sentence is to be served consecutively to the sentence he is serving in the attempted robbery case.

Grissom commended the Shawnee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.

KANSAS CITY, KAN. – A man has pleaded guilty to selling counterfeit goods at a store in Kansas City, Kan., including shoes labeled as Nike Air Force 1 and shirts labeled as Polo Ralph Lauren, U.S. Attorney Barry Grissom said today.

Jehad Shalabi, 45, pleaded guilty to one count of conspiracy to traffic in counterfeit trademark goods. During a hearing today, prosecutors told the judge that Shalabi sold counterfeit goods at a retail store called Joe Black, Inc., at 3201 State Avenue in Kansas City, Kan.

Agents of the FBI made undercover purchases at the store including a counterfeit trademark pair of Nike Air Force 1 shoes on Feb. 22, 2011, and a counterfeit trademark Polo Ralph Lauren knit shirt on June 9, 2011. On June 30, 2011, Shalabi sold a counterfeit trademark NBA Chicago Bulls hat.

On June 28, 2011, agents served a search warrant at the store and seized approximately 588 counterfeit items with trademarks including Polo Ralph Lauren, Nike, Major League Baseball, Nervous Tattoo (Ed Hardy and Christian Audigier), Luxirie, Rocawear and Coogi.

Investigators learned that counterfeit goods made up approximately 20 percent of the store’s weekly sales of $4,000 to $6,000.

Sentencing is set for Oct. 9. Shalabi faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI, ICE-HSI, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Scott Rask for their work on the case.

TOPEKA, KAN. – A Topeka man has pleaded guilty to taking part in an armed robbery at a Little Caesars Pizza restaurant, U.S. Attorney Barry Grissom said today.

David Pierre Wigfall, 28, Topeka, Kan., pleaded guilty to aiding and abetting a robbery in which the robber brandished a firearm. In his plea, Wigfall admitted that on March 1, 2013, he drove a white Cadillac occupied by co-defendants Alonzo Nathan Lax, Johnnie Lee McCall and Jordan Lucas. At McCall’s direction, Lax agreed to rob Little Caesar’s Pizza at 2620 SW 6th Street, Suite B, in Topeka. Wearing a blue hooded sweatshirt, gloves and a black ski mask, Lax entered the restaurant, brandished a firearm and demanded money. A clerk saw him leave the restaurant and get into the passenger side of the Cadillac.

A few minutes later, officers of the Topeka Police Department found the Cadillac parked at a residence in the 1000 block of SW Plass and determined that it was registered to Wigfall. They saw articles that appeared to be from the robbery in the car. They kept watch on the car until Wigfall got in and drove away. When they stopped Wigfall they recovered a mask and coins from the robbery that Wigfall had discarded before they pulled him over.
Sentencing is set for Sept. 23. He faces a penalty of not less than seven years and not more than life and a fine up to $250,000.

Co-defendants include: Johnnie Lee McCall, 28, Topeka, Kan., who pleaded guilty to one count of aiding and abetting commercial robbery and one count of aiding and abetting brandishing a firearm. He is set for sentencing Aug. 19.
Jordan Christopher Lucas, 26, Topeka, who pleaded guilty to one count of commercial robbery and one count of brandishing a firearm in connection with a Feb. 27, 2013 robbery at Baskin Robbins, 4400 S.W. 21st in Topeka. He is set for sentencing Sept. 3.
Alonzo Lax, 26, Topeka, who pleaded guilty to robbery and brandishing a firearm. He is set for sentencing Aug. 13.

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

WICHITA, KAN. – A Dodge City man has pleaded guilty to aiding and abetting attempted murder in connection with a federal racketeering case, U.S. Attorney Barry Grissom said today.

Enrique Gobin, 23, Dodge City, pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. In his plea, he admitted that on March 30, 2011, he was involved in the attempted murder of a Sureno gang member.

On the day of the crime, Gobin was with two fellow members of the Diablos Viejos gang – Jesus Sanchez and Andrew Gusman – and an LCC gang member named Alfonso Banda-Hernandez. All four of them were affiliated with the Nortenos street gang. At the east Love’s convenience store in Dodge City they encountered George Gonzalez, who was a known member of the rival Sureno gang. The two sides exchanged gang signs and slurs.

The Nortenos left the store and divided themselves into two cars. Gobin and Sanchez were in one car, with Gobin driving. They returned to the area of the store and pursued a car in which Gonzalez was riding. Near 1602 6th Ave., Gonzalez got out of his car and ran up an alley toward his girlfriend’s residence. Sanchez fired at least two shots from a .40 caliber handgun at Gonzalez without hitting him.

Later, when officers of the Dodge City Police Department conducted a search of Gobin’s home, they found the gun used to shoot at Gonzalez.

In his plea, Gobin admitted that robberies, assaults and other crimes were part of the way Norteno gang members built their reputations and kept their rivals at bay.

Sentencing is set for Sept. 3. Gobin was one of 23 Norteno members to be indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. Gobin is the ninth defendant in the case to enter a guilty plea.

Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.

WICHITA, KAN. - An Augusta, Kan., man who posed online as a teenage boy to entice middle school girls to make sexually explicit videos was sentenced Monday to 220 months in federal prison, U.S. Attorney Barry Grissom said.

Kristopher K. Sims, 30, Augusta, Kan., pleaded guilty to one count of producing child pornography. In his plea, Sims admitted that on Nov. 20, 2012, he made a recording of a 12-year-old girl engaging in a sexual act. Sims was in Kansas and the girl was in New York. He used his computer to engage in a video chat with her, which he recorded.

Sims first met the victim when she was 11 years old via Facebook. He posed as a boy who was 15 or 16 years old. Over a period of months, he communicated with her in chats and video messaging. He persuaded her to engage in sexual acts, which he captured in live video feeds from her computer.

Grissom commended the Augusta Police Department, the Wichita Police Department’s Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.

WICHITA, KAN. –Three members of a Dodge City street gang charged in a federal racketeering case have pleaded guilty, U.S. Attorney Barry Grissom said today.

Angel Cerda, 27, Dodge City, Kan., pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. He admitted he was involved in an Oct. 4, 2008, incident in which two people were shot.

Jesus Torres, 29, Dodge City, Kan., pleaded guilty to one count of aiding and abetting assault with a dangerous weapon, which was a violent crime in aid of racketeering. He admitted he was involved in an Aug. 27, 2011, incident in which two people were stabbed with knives.

Fabian Neave, 26, Dodge City, Kan., pleaded guilty to one count of racketeering conspiracy. He admitted that from 2008 to 2012 he acted as a principal conspirator with the gang, and he was involved in acts of robbery, attempted murder and drug trafficking.

In his plea, Angel Cerda admitted he was a Diablos Viejos (DV) gang member associated with the Norteno street gang when he accompanied two co-defendants in an attack at the home of a member of the rival Sureno gang. On Oct. 4, 2008, Cerda and two co-defendants gathered in a barn behind a house at 10770 Kettle Way near Dodge City, which was a hangout for the gang. Later that day, Cerda and the two co-defendants drove to the home of Abel Hernandez, a known Sureno gang member, and Rumalda Hipolito. Outside the home, Hernandez’s brother and others were drinking beer. One of the Nortenos began harassing them and shouting Norteno slogans. After someone threw a beer bottle at the Nortenos’ car, Cerda and the two co-defendants drove away.

Cerda and his associates obtained a firearm, an SKS or AK-47 style weapon, and returned to Hernandez’s house, parking in an alley half a block away. They approached the house on foot where co-defendant Gonzalo Ramirez discharged multiple rounds from the firearm. The gunshots hit the house, striking Abel Hernandez and Rumalda Hipolito. Hipolito suffered a gunshot wound to the arm. Hernandez suffered a gunshot wound to the leg. Investigators found 19 bullet holes in the house and recovered 20 shell casings at the scene. After the shooting, Cerda and the two co-defendants returned to the house on Kettle Way, where they hid the car in the barn. Dodge City police arrested Cerda there.

In his plea, Jesus Torres admitted that he was a member of the Diablos Viejos on Aug. 27, 2011, when he urged Norteno associates to join him in an assault on a group of people he mistakenly believed were members of the Surenos, a rival gang. The assault took place at 703 E. 9th Avenue in Dodge City. During the fight, two people were stabbed, Gabriel Rivera and Carlos Ramirez. Rivera’s injuries were life-threatening, requiring a life-flight to a Wichita hospital.

In his plea, Fabian Neave admitted he was a member of the Diablos Viejos and associated with the Norteno street gang. He admitted being involved in three incidents including taking part in the Aug. 27, 2011, assault at 703 E. 9th Ave., and possessing methamphetamine with intent to distribute on Dec. 27, 2011. In the third incident, on July 2, 2008, he and other Nortenos robbed Bryant Licon. During the robbery, Neave held a knife to Licon. He and two other Nortenos split the money from the robbery.

All three defendants admitted that robberies, assaults and other crimes were part of the way Norteno gang members built their reputations and kept their rivals at bay.

Cerda is set for sentencing Sept. 3. He faces a maximum penalty of 10 years and a fine up to $250,000.
Torres is set for sentencing Sept. 3. He faces a maximum penalty of 20 years and a fine up to $250,000.
Neave is set for sentencing Sept. 9. He faces a maximum penalty of 20 years and a fine up to $250,000.

Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.

WICHITA, KAN. – A Wichita man has been sentenced to federal prison after pleading guilty to a 2012 robbery at the Intrust Bank in Valley Center, Kan., U.S. Attorney Barry Grissom said today.

Terry G. Revels, 50, Wichita, Kan., was sentenced to 19 years and seven months in federal prison. He pleaded guilty to one count of bank robbery.

During the sentencing hearing, prosecutors told the judge that Revels and three other defendants took part in the Oct. 18, 2012, robbery of the Intrust Bank at 142 North Ash in Valley Center, Kan. Revels and one of the co-defendants entered the bank, vaulted the counter and demanded money. Two of the other co-defendants remained outside in a car, acting as lookouts.

After the robbery, a Valley Center police officer stopped Revels and two co-defendants in a white Cadillac. The defendants fled on foot. Revels entered a home in the area, tied up a 15-year-old boy and took his cell phone. Revels later was arrested hiding in a truck.

Co-defendants are: – Henry J. Adams, III, who pleaded guilty and is set for sentencing Aug. 5.
– Dlaney M. Nixon, who is awaiting trial.
– Veronica K. Johnson, who pleaded guilty and is set for sentencing June 12.

Grissom commended the agencies that took part in the investigation including the FBI, the Sedgwick County Sheriff’s Office, the Valley Center Police Department, the Wichita Police Department, the Kansas Highway Patrol, the Park City Police Department, the Maize Police Department, the Kechi Police Department, the Haysville Police Department, the Colwich Police Department, the Andale Police Department, the Mount Hope Police Department and the State Parole Office, as well as Assistant U.S. Attorney David Lind, who prosecuted the case.

KANSAS CITY, KAN. – A Kansas City, Kan., man has been sentenced to 235 months in federal prison after pleading guilty to interstate travel for the purpose of engaging in sex with a child, U.S. Attorney Barry Grissom said today.

Robert Poe, III, 39, Kansas City, Kan., pleaded guilty to three counts of traveling from Kansas to Missouri for the purpose of engaging in sex acts with a child.

“Protecting children against sexual predators and achieving justice for victims of those crimes are our highest priorities,” said U.S. Attorney Barry Grissom. “In this era of instant communication and interaction in cyberspace the threats to our children continue to grow and evolve.”

During hearings, prosecutors told a federal judge the crimes occurred in 1999 and 2000. They said the investigation began in November 2000 when the Kansas City, Kan., Police Department received a complaint from the mother of a 7-year-old boy. The mother said Poe had engaged in sexual acts with her son. At the time, Poe was a friend of the mother’s boyfriend, Michael Arnett, and Poe sometimes served as a babysitter for the boy. Arnett was charged in a separate federal criminal case, pleaded guilty and was sentenced to 30 years in federal prison.

Prosecutors told the judge that one incident (count one) occurred in April 2000 when Poe was babysitting the boy at Poe’s home. Poe showed the boy photos of nude children and then made the boy perform oral sex on him.

Another incident (count two) occurred in July 2000 when Poe was babysitting. The boy said Poe held a gun to his head and forced him to perform oral sex.

Another incident (count three) occurred in 1999 or 2000. A victim told federal agents that he and his now deceased brother were molested by Poe and Arnett while the victim was between 10 and 12 years old. The victim said he first met Arnett in 1997 when his brother was a patient at the Children’s Mercy Hospital in Kansas City. The victim’s brother had cystic fibrosis and died in May 2003. The victim said Arnett befriended him and his brother. The victim said the molestation started when Arnett’s friend Poe started showing up with Arnett in 1998. The victim said Poe held a gun to his head and forced him to perform oral sex on him. The victim said Poe first molested him at the house of Poe’s father in Shawnee Mission, Kan. The victim said Arnett and Poe took him and his brother out of town on weekend trips and molested both boys. The trips were to St. Louis, Mo., Bennet Springs, Mo., and Oklahoma City, Okla.

Grissom commended the Kansas City, Kan., Police Department, ICE’s Homeland Security Investigations and Assistant U.S. Attorney Kim Martin for their work on the case.

KANSAS CITY, KAN. – A Kansas City, Mo., man has been sentenced to federal prison for sex trafficking, U.S. Attorney Barry Grissom said today.

Tony A Rogers, Jr., 25, Kansas City, Mo., was sentenced to 57 months in prison. Rogers pleaded guilty to one count of interstate transportation of an individual with intent to engage in prostitution. In his plea, he admitted he was arrested Aug. 9, 2012, when the Special Investigations Unit of the Prairie Village Police Department conducted a prostitution sting. An investigator working undercover called a number on an Internet site and arranged for a woman to meet him in Prairie Village, Kan.

At approximately 8 p.m. that day, Rogers and a co-defendant left Independence, Mo., with a woman identified in the indictment as K.C., with the intent that K.C. would engage in prostitution. Police took K.C. into custody when Rogers dropped her off. Rogers and the co-defendant were stopped and arrested after they dropped off K.C.

Co-defendant Danyelle N. Putman pleaded guilty to the same charge as Rogers did. She is set for sentencing June 25.

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

KANSAS CITY, KAN. – A former Garden City employee has been sentenced to 16 months in federal prison for theft of public funds, U.S. Attorney Barry Grissom said today. He also was ordered to pay $51,680 in restitution.

Pedro A. Castro, 35, Garden City, Kan., pleaded guilty to one count of theft from a program receiving federal funds. In his plea, he admitted the crime occurred in 2010 and 2011 while he was working as diversion coordinator for the Garden City prosecutor’s office. The city was a local government that received federal benefits totaling more than $10,000 in 2010 and 2011. During this time, Castro stole more than $5,000 of the money, which was paid to the Garden City prosecutor’s office as diversion funds.

Grissom commended the Garden City Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.

KANSAS CITY, KAN. – A Colorado couple has been sentenced for operating a $17 million Ponzi scheme that defrauded investors in 13 states and five foreign countries with promises of big returns on investments in diamonds and international notes, U.S. Attorney Barry Grissom said today. Prosecutors from Grissom’s office are serving as special counsel on the case, which was filed in U.S. District Court in Denver.

Richard Dalton, 66, Golden, Colo., was sentenced to 120 months in federal prison. He pleaded guilty to one count of money laundering. His wife, Marie Dalton, 61, Golden, Colo., was sentenced to 60 months in federal prison. She pleaded guilty to one count of conspiracy to commit mail fraud. Restitution will be determined by July 24.

In their pleas, the Daltons admitted that from 2007 through 2010 they operated a company called Universal Consulting Resources, soliciting investors to purchase interests in investment contracts. The Daltons falsely told investors they were guaranteed annual returns ranging from 48 to 120 percent on profits generated from trading in diamonds and international notes. The Daltons falsely claimed that the investments were low risk, that investors’ money could be returned at any time and that the company’s accounts were evaluated by top professionals and licensed third parties. The Daltons falsely claimed the invested funds would be held safely in an escrow account at a bank in the United States.

In fact, Universal Consulting Resources was operated as a classic Ponzi scheme, wherein investor funds were commingled and used to pay out purported profits to early investors to create the false appearance that the investments were performing as promised.

The Daltons used investor funds to pay personal expenses including the purchase of autos, real estate and $35,000 worth of dental work for Richard Dalton. Family members of the Daltons also received substantial payments from the company.

In 2010 when the Daltons learned they were under investigation by the Securities and Exchange Commission, they discontinued making payments to investors. They attempted to deceive investors by claiming payments would be coming soon and inventing reasons for the delays. In November 2010 they left the United States for South Africa, where they remained until they were forced to return to the United States and arrested in Atlanta on Sept. 30, 2011.

The parties agreed that the net loss to the victims caused by the crimes was more than $2.5 million and less than $7 million.

The FBI, IRS-Criminal Investigations and the Securities Exchange Commission investigated. Assistant U.S. Attorney Richard Hathaway and Assistant U.S. Attorney Christine Kenney served as special counsels to prosecute the case.

KANSAS CITY, KAN. – A man from Kansas City, Kan., has been indicted on drug and firearms charges, U.S. Attorney Barry Grissom said today.

Joseph P. Pacheco, 41, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of carrying a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Feb. 5, 2013, in Kansas City, 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 conspiracy charge; a penalty of not less than five years – consecutive to a sentence for drug trafficking – 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 charge of unlawful possession of a firearm after a felony conviction.

The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Zabel is prosecuting.

OTHER INDICTMENTS

Cheryl D. Seigler, 37, Wichita, is charged with two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred May 17 and May 31, 2013, in Sedgwick County, Kan.

If convicted, she faces a maximum penalty of 10 years and a fine up to $250,000 on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.

Antonio Villa-Cesario, 37, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by an alien illegally in the United States, and one count of unlawfully re-entering the United States after being deported. The gun crime is alleged to have occurred May 21, 2013, in Wyandotte County, Kan.

If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on the gun charge, and a maximum penalty of two years and a fine up to $250,000 on the immigration charge. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

Mario Alberto Medina-Urias, 28, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found May 24, 2013, in Sedgwick County, Kan.

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

Edgar Lara-Garcia, 31, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found May 20, 2013, in Crawford County, Kan.

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

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

KANSAS CITY, KAN. – Two Kansas men have pleaded guilty to a federal dog fighting charge, U.S. Attorney Barry Grissom said today.

Pete Davis, Jr., 38, Kansas City, Kan., and Melvin Robinson, 42, Kansas City, Kan., each pleaded guilty to one count of transporting animals for participation in an animal fighting venture.

The two men initially were charged in a criminal complaint alleging they owned dozens of dogs – most of them pit bulls – that they trained and took to dog fights. They kept the dogs at a farm in Harrison County, Mo., and at their residences in Kansas City, Kan, and transported some of them to fights as far away as Dallas, Texas. On March 22 and 23, 2013, federal, state and local investigators served search warrants at several locations, seizing 77 dogs and six chickens.

According to court documents, an FBI investigation that began in November 2012 revealed that:

-- To train dogs for fighting, Robinson had a treadmill at his residence in Kansas City, Kan. He routinely placed a harness on a dog and chained the harness to the treadmill for several hours at a time. The treadmill was equipped with a plywood box to keep the dog on the treadmill. Robinson also put weights on the dog to strengthen it and provided caged live chickens in front of the treadmill as bait.
-- Robinson and Davis discussed betting $20,000 to $30,000 on a dog they were training for a fight scheduled to take place on March 23, 2013, in Dallas, Texas. They called such fights "dog shows."
-- On March 17, 2013, Davis and Robinson held three dog fights involving six dogs at the farm in Missouri in preparation for the dog fight in Dallas.
-- At various times during the investigation, dogs died at the farm in Missouri and their bodies were discarded.
-- On March 22, 2013, investigators followed Robinson and Davis as they traveled to a location near Tyler, Texas, for a dog fight.

Sentencing is set for Sept. 9. The defendants face a maximum penalty of five years in federal prison and a fine up to $250,000.

Grissom thanked the following agencies for their work on the case: The FBI, the Kansas City (KS) Police Department, the Harrison County (MO) Sheriff's Department, the Missouri State Highway Patrol, the Texas Department of Public Safety - Narcotics and Highway Patrol, East Texas HIDTA, the FBI Dallas Division - East Texas Resident Agencies, the American Society for the Prevention of Cruelty to Animals, the Texas Parks and Wildlife Department - Game Wardens, the Texas Department of Criminal Justice - OIG, the Lindale Police Department, the Smith County Sheriff’s Office, the Dallas Police Department and the Dallas County Sheriff’s Office. He also thanked the American Society for the Prevention of Cruelty To Animals for assisting investigators by agreeing to house and care for dogs that were seized by investigators.

KANSAS CITY, KAN. – Barry Grissom, U.S. Attorney for the District of Kansas, will take part in the 2013 Indian Country Conference June 11 and 12 in Sloan, Iowa.

The conference will focus on domestic violence and sexual assault in Indian Country.

“Nearly half of all American Indian women have been physically assaulted, raped or stalked by a partner – and more than one in four have been raped,” Grissom said. “We have much work to do to assure that women and girls in tribal communities are kept safe.”

The conference in Iowa will bring Grissom together with the U.S. Attorneys for Nebraska and the Northern District of Iowa, as well as victim service providers and law enforcement officers from across the Midwest.

Grissom is a member of the Justice Department’s Native American Issues Subcommittee (NAIS). The NAIS is made up of U.S. Attorneys whose districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General of the United States regarding public safety and legal issues that impact tribal communities.

Last week, the Justice Department issued a national report showing a 54 percent increase in Indian Country criminal prosecutions since Fiscal Year 2009.

“Across the country, U.S. Attorneys have been focused on fighting crime in Indian Country and reinforcing the bond between federal and tribal law enforcement, which also strengthens the faith that people have in their criminal justice system,” said U.S. Attorney General Eric Holder.

In Kansas, Grissom’s office works with four federally recognized Indian tribes: the Kickapoo, the Prairie Band Potawatomi, the Iowa and the Sac and Fox.

A tribal liaison from Grissom’s office meets regularly with tribal police and leaders of the four tribes in Kansas, as well as local law enforcement officers and state prosecutors who are responsible for investigating and prosecuting state crimes on the reservations in Kansas.

KANSAS CITY, KAN. – A Kansas City, Mo., man has been sentenced in a mortgage fraud case, U.S. Attorney Barry Grissom said today.

Michael D. Robinson, 36, Kansas City, Mo., was sentenced to a year and a day in federal prison. Robinson pleaded guilty to one count of conspiracy to commit mail fraud. In his plea, he admitted he conspired with others to provide false information to mortgage lenders.

Robinson admitted he purchased houses that were being foreclosed and then sold them to buyers at inflated prices. He bought and sold houses personally and through companies he established including The Atomic Group, LLC. To advance the scheme and make sure buyers were approved for loans, Robinson gave buyers money for down payments to buy houses. He put money into a bank account in a buyer’s name to make it appear to the lender that the buyer had money to qualify for a loan. Robinson falsely stated that buyers had provided down payments.

In order to get the lender to approve loans at inflated prices, Robinson agreed with an appraiser who provided inflated appraisals based on false information. For instance, the appraiser falsely stated that improvements had been made when in fact very little work had been done.

Grissom commended IRS - Criminal Investigation, Housing and Urban Development - OIG, Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney Jabari Wamble for their work on the case.

WICHITA, KAN. – A former Wichita investment advisor has been sentenced to 63 months in federal prison after pleading guilty to stealing money he pretended to be investing for clients, U.S. Attorney Barry Grissom said today. He was ordered to pay more than $2.2 million in restitution.

Eric Burns, 44, Wichita, Kan., pleaded guilty to five counts of wire fraud. In his plea, he admitted he arranged for electronic transactions to take place as part of a scheme to defraud clients.

The transactions included the following:

The transfer of $70,000 on Aug. 20, 2008, from Boston to New York City.
The transfer of $25,000 on July 7, 2010, from Boston to Wichita.
The transfer of $12,000 on Aug. 13, 2010, from Boston to Wichita.
The transfer of $150,000 on Aug. 26, 2010, from Boston to Wichita.
The transfer of $130,000 on June 7, 2011, from Boston to Wichita.

On Nov. 8, 2011, the Office of the Kansas Securities Commissioner suspended Burns’ registration as an investment advisor after receiving a complaint that he misappropriated client funds.

Grissom commended the FBI, the Office of the Kansas Securities Commissioner, Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Tanya Treadway for their work on the case.

WICHITA, KAN. – An optometrist from Derby, Kan., has been sentenced to 41 months in federal prison after pleading guilty to wire fraud in a scheme to collect more than $500,000 in pay for eye exams that never were performed, U.S. Attorney Barry Grissom said today. In addition, he was ordered to pay $583,060 in restitution.

Wade D. Abbey, 47, Derby, Kan., pleaded guilty to five counts of wire fraud. An indictment filed in March 2012 alleged that the crimes were committed while Abbey and his wife were working as optometrists for Visions Doctors of Optometry. They were paid an hourly wage and additional fees for each full eye exam they conducted. Wade Abbey inflated the number of eye exams they performed and provided false information to an accountant who paid them based on the false information.

In his plea, Abbey admitted that: On Jan. 6, 2010, he sent an email stating that he provided 177 full eye exams and his wife provided 160 full eye exams, which he knew was not true.
On Jan. 20, 2010, he sent an email stating he provided 197 full eye exams and his wife provided 186 full eye exams, which he knew was not true.
On Feb, 3, 2010, he sent an email stating he provided 206 full eye exams and his wife provided 185 full eye exams, which he knew was not true.
On March 31, 2010, he sent an email stating he provided 207 full eye exams and his wife provided 185 full eye exams, which he knew was not true.
On June 23, 2010, he sent an email stating he provided 187 full eye exams and his wife provided 176 full eye exams, which he knew was not true.

As a result of the fraud, he was paid $583,060.

Grissom commended the FBI and Assistant U.S. Attorney Debra Barnett for their work on the case.

TOPEKA, KAN. – An investigation that started in Australia has resulted in a Topeka man being charged with producing child pornography, U.S. Attorney Barry Grissom said today.

Jonathan Kearn, 38, Topeka, Kan., is charged with one count of producing child pornography, one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in April and May 2013 in Shawnee County, Kan.

Kearn initially was charged in a criminal complaint filed May 10, 2013, in U.S. District Court in Topeka. An affidavit in support of the complaint alleges the investigation began when an investigator working undercover for the Queensland Police Service in Queensland, Australia, received an email from Kearn. Kearn sent the investigator images of child pornography that were produced by Kearn.

If convicted, he faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000 on the production charge; a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge and a maximum penalty of 10 years and a fine up to $250,000 on the distribution charge.

ICE Homeland Security Investigations investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.

OTHER INDICTMENTS

Steven Michael Gigger, 29, Topeka, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of ammunition and one count of unlawful possession of a firearm with the serial number obliterated. The crimes are alleged to have occurred May 19, 2013, in Douglas County, Kan.

Gigger was arrested after an incident May 19 in Lawrence, Kan. According to news reports, Lawrence police responded to a disturbance at the bar Club Magic, 804 West 24th St., when they heard gunshots and found a shooting victim on Greever Terrace. According to news reports, a vehicle driven by a second gunshot victim crashed into a police patrol car in the parking lot of a McDonald’s restaurant.

If convicted on the federal charge, Gigger faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Douglas County District Attorney Charles Branson’s office assisted. Assistant U.S. Attorney Greg Hough is prosecuting.

Charles Henderson, Jr., 24, Kansas City, Kan., and Kyser L. Leonard, 40, Kansas City, Kan., are charged with one count of conspiracy to distribute heroin and two counts of distributing heroin within 1,000 feet of the Bethel Neighborhood Center playground in Kansas City, Kan. In addition, Henderson is charged with one count of possession with intent to distribute heroin within 1,000 feet of the Bethel Neighborhood Center and one count of unlawful possession of a firearm by a user of a controlled substance. In addition, Leonard is charged with one count of maintaining a residence in furtherance of drug trafficking at 14 North Tremont in Kansas City, Kan., and two counts of using a telephone in furtherance of drug trafficking. The crimes are alleged to have occurred at various times from Nov. 6, 2012, to May 6, 2013, in Kansas City, Kan.

The government is seeking the forfeiture of $25,139 in proceeds from the alleged crimes.

Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Distribution: A maximum penalty of 40 years and a fine up to $2 million.
Possession with intent to distribute: Not less than five years 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 residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $500,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years on each count and a fine up to $30,000 on each count.

The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.

Melissa Jo Brachter, 35, is charged with one count of possession with intent to distribute marijuana and one count of distributing marijuana within 1,000 feet of Ellsworth Junion and Senior High School in Ellsworth, Kan. The crime sare alleged to have occurred April 15, 2013, in Ellsworth County, Kan.

If convicted, she faces a penalty of not less than a year and not more than 20 years and a fine up to $500,000 on the first count and maximum penalty of 20 years and a fine up to $1 million on the second count. The Ellsworth County Sheriff’s Office and the Kansas Highway Patrol investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.

Gregory A. Madinger, II, Topeka, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred April 17, 2013, in Shawnee County, Kan.

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

Jose G. Jimenez, 29, Wichita, is charged with five counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred May 21, 2013, 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 each count. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

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

KANSAS CITY, KAN. – A man from Johnson County, Kan., has been sentenced to 30 years in federal prison for producing child pornography, including images of a naked two-year-old boy in a roaster pan in an oven, U.S. Attorney Barry Grissom said today.

The case was part of Operation Hotlina, a major investigation into child exploitation by ICE’s Homeland Security Investigations.

Gary Hartwig, special agent in charge of HSI Chicago, which oversees Kansas, said: “To rescue these innocent victims, HSI will relentlessly pursue child predators. Since we began Operation Hotlina a worldwide network of offenders has been, and continues to be, unraveled, including this defendant. Thanks to the determination of HSI special agents, and our law enforcement partners, we have been able to rescue 163 children and arrest 51 perpetrators worldwide.”

Michael D. Arnett, 38, Roeland Park, Kan., pleaded guilty to one count of producing child pornography. In his plea, Arnett admitted that investigators found child pornography on his computer when they served a search warrant May 15, 2012, at his home in Roeland Park.

The case began when Homeland Security seized child pornography including images of victims who appeared to be from the area of Overland Park, Kan. Investigators focused on a water bottle in one of the photos bearing the words “Midwest Aquatics” and a phone number beginning with the 913 area code. Midwest Aquatics is a swim and scuba center located at 7565 W. 160th Street in Overland Park.

With the assistance of teachers at an elementary school in Shawnee Mission, investigators ultimately identified three boys who been photographed at Arnett’s home at 5451 Juniper Drive in Roeland Park. At the time the photos were taken, the boys were 11, 8 and 2 years old.

Grissom commended ICE’s Homeland Security Investigations, the Johnson County Sheriff’s Department and Assistant U.S. Attorney Kim Martin for their work on the case.

KANSAS CITY, KAN. – A woman from Ottawa, Kan., has been sentenced to 18 years in federal prison for her role in a drug trafficking ring tied to the death of a man who died from taking a mixture of prescription drugs, U.S. Attorney Barry Grissom said today.

Tamara Ledom, 37, Ottawa, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute oxycodone, hydrocodone, methadone, morphine and methamphetamine resulting in the death of a user.

In her plea, she admitted that from Nov. 1, 2007 through Feb. 28, 2012, she was a member of a drug trafficking ring headed by co-defendant Connie Edwards that distributed prescription drugs and other controlled substances in Franklin County, Kan.

On May 10, 2009, a victim who bought drugs from the Edwards' organization, was found unconscious in the living room of his mother's home. He was taken to a hospital and pronounced dead. An autopsy revealed that he died from taking a toxic combination of methadone, hydrocodone and carisoprodol.

Investigators learned that the afternoon before the victim died he purchased hydrocodone, methadone and carisprodal from Ledom and Edwards at Edwards’ residence in Ottawa. Ledom had crushed prescription pills into a powder which was sold to Powell as methamphetamine. Later that evening, the victim purchased prescription pills. Then he injected the substance he believed was methamphetamine – and took the pills – creating a toxic combination that caused his death.

Investigators also documented other incidents in which Ledom sold controlled substances.

Co-defendants include: Connie Edwards, who was sentenced to 300 months
Brittany Edwards, 20, Ottawa, Kan., who is set for sentencing June 3.
Shirley Price, 45, Ottawa, Kan., who is set for sentencing June 10.
Dustin Price, 24, Ottawa, Kan., who is set for sentencing June 10.
Joel Keith Price, 55, Ottawa, Kan., who is set for sentencing June 10.
Morgan Price, 22, Ottawa, Kan., who was sentenced to 5 years probation with 6 months in the halfway house.
Brandi Bivens, 31, Ottawa, Kan., who is set for sentencing Aug. 19.
Angela Mitchell, 36, Ottawa, Kan., who is set for sentencing July 8.
Florence Edwards, 39, Ottawa, Kan., who was sentenced to 12 months probation.

Grissom commended the Franklin County Drug Task Force, the Ottawa Police Department, the Franklin County Sheriff’s Office, the Internal Revenue Service, the Kansas Bureau of Investigation and Assistant U.S. Attorney Sheri McCracken for their work on the case.

WICHITA, KAN. – Three persons from North Hollywood, Calif., have been arrested in an alleged scheme in which semi-trailer loads of goods were stolen from companies in California and an attempt to steal a load of processed beef was made in southwest Kansas, U. S. Attorney Barry Grissom said Wednesday.

Two of the three persons, Oganes Nagapetian, 53, and his wife, Larisa Nagapetian, 46, are scheduled to be arraigned on a federal indictment in the U.S. District Court in Wichita on June 4; the third defendant, Tigran Nagapetian, 50, a brother of Oganes Nagapetian, appeared Tuesday before a U.S. magistrate judge in Los Angeles. He also is scheduled to appear for arraignment in Kansas on June 4. All three are charged in the Kansas federal indictment, Grissom said.

“The defendants are alleged to have engaged in a scheme to steal semi-loads of cargo by pretending to be legitimate freight haulers,” Grissom said. “They are charged with conspiracy, wire fraud and aggravated identity theft. The USDA Office of Inspector General and the FBI, together with their state and local law enforcement partners, are aggressively investigating these cases.”

Grissom said such schemes have become more common across the country in the past few years, and that the large meat packing plants in Kansas – including Dodge City, Liberal, Holcolm and Garden City -- have been targeted on several occasions. A total of seven large plants load dozens of semi-loads per day of packaged meat, which is a commodity that is valuable and relatively easy to sell, he said. A semi-trailer-load of processed beef can be worth $100,000 wholesale, Grissom said. Meat packing plants in Nebraska also have been victimized, he said.

The indictment, which was returned by a federal grand jury in Wichita April 23, alleges that the defendants conspired in November 2011 to steal a load of beef from the Tyson Fresh Meats plant in Holcomb, Kan., and the brothers dropped off a trailer to be loaded, but never came back to pick it up because they thought they were under law enforcement surveillance. In the weeks before the attempted Holcomb theft, loads of shoes, fans and almonds were stolen from three companies in California, according to the indictment.

The indictment alleges that the three conspired to use the identity of a legitimate trucking company in Pennsylvania to bid on hauling the load of Kansas beef to California through a freight broker based in Ohio. Once the hauling contract was awarded, a man allegedly fitting the description of Oganes Nagapetian but using a counterfeit California commercial drivers license in another person’s name dropped off a trailer at the Tyson plant in Holcomb to be loaded. The man never returned, according to the indictment.
The indictment charges all three defendants with conspiracy to commit wire fraud and to steal shipments of freight, which carries a maximum penalty of five years in prison. Oganes Nagapetian and Tigran Nagapetian also are charged with wire fraud, which has a maximum penalty of 20 years in prison, and aggravated identity theft, which has a statutorily-required sentence of two years in prison. In addition, Oganes Nagapetian, a lawful permanent resident from Russia, faces various document fraud charges. Tigran Nagapetian is a naturalized U.S. citizen from Armenia, as is Larisa Nagapetian.

In addition to the USDA OIG and FBI, agencies working on the investigation include Homeland Security Investigations; the Kansas Highway Patrol; the Los Angeles County Sheriff’s Dept. and its “Cargo Cats” unit; the Finney County, Kan., Sheriff’s Dept.; the California Highway Patrol Cargo Theft Interdiction Program; the National White Collar Crime Center; and the National Insurance Crime Bureau. It is being prosecuted by Assistant U.S. Attorney Brent Anderson.

If convicted of the conspiracy count, the defendants face a maximum sentence of five years in prison and a $250,000 fine. Wire fraud carries a maximum of 20 years in prison and a $250,000. Document fraud has a maximum sentence of 15 years in prison, and aggravated identity theft has a mandatory sentence of two years in prison. As in any criminal case, a defendant is innocent unless proven guilty; an indictment merely alleges criminal conduct.

WICHITA, KAN. –A former officer of the Wichita Police Department and two other people have been charged with conspiracy and wire fraud after an internal investigation by police concluded that they were involved in scheme to keep the officer from losing her job, U.S. Attorney Barry Grissom said today. The police department submitted the results of its investigation to the FBI and the U.S. Attorney’s office for review.

Former officer Joletta Vallejo, 34, and her friends, Patrick Melendrez, 40, Wichita, and Courtney Foster, 30, Wichita, are charged with one count of conspiracy to commit wire fraud and seven counts of wire fraud.

The indictment alleges that on Oct. 16, 2011, a woman went to the Patrol North substation in Wichita to report that she had been abducted and beaten by her boyfriend, Larry Edmonds. Vallejo took the report and opened a case of misdemeanor domestic violence.

During the same evening, another man called the police department’s Case Desk, a 24-hour service for the public to report crimes that do not require an officer’s presence to make an arrest or collect evidence. The man said Edmonds, the suspect in the abduction and beating, had robbed him and stolen his car. The man was told to report the crime to a police officer. When the man went to Patrol North to report the car theft, Vallejo refused to take the report and told him to call the Case Desk.

Ultimately, Edmonds was arrested, charged and convicted in Sedgwick County District Court on felony charges of aggravated kidnaping, robbery and attempted first degree murder. The police department’s Professionals Standards Bureau investigated Vallejo’s handling of the initial reports and concluded that she violated departmental policies and regulations.

The indictment alleges that on Aug. 22, 2012, Vallejo knew she was going to be fired. She arranged for co-defendant Patrick Melendrez, to make a call to the man who tried to report the car theft. Melendrez offered to pay the man to change his statements to the police department’s Professional Standards Bureau. Melenrez said he would pay the man $150 to change his statement to make it less likely Vallejo would lose her job – and another $150 if Vallejo was able to keep her job. Then Vallejo, Melendrez and co-defendant Courtney Foster drove to an ATM where Vallejo got cash for Melendrez to pay the bribe.

Melendrez set up a meeting to pay the man to change his statements. Melendrez took a tape recorder to the meeting that Vallejo had given him so he could record the man’s call to police changing his statement. Co-defendant Foster gave Melendrez a ride to the meeting and waited across the street during the meeting.

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 Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.

OTHER INDICTMENTS

A former Wichita area physician who is serving time on supervised release for a drug violation has been indicted on federal charges including possession of controlled substances, U.S. Attorney Barry Grissom said.

A grand jury returned an indictment charging Lawrence M. Simons, 57, Wichita, with one count of possession of controlled substances, one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of ammunition after a felony conviction.

In January 2010, Simons, a former employee of the Schneider Medical Clinic in Haysville, Kan., was sentenced to 24 months in federal prison to be followed by three years on supervised release after he pleaded guilty to two counts of unlawfully distributing a controlled substance. In his plea, he admitted he prescribed Fentanyl and that the prescriptions were not issued for a legitimate medical purpose or made in the usual course of medical practice because the person who received the prescription was not his patient.

The new indictment alleges that in August 2008 Simons signed an agreement with the Drug Enforcement Administration to voluntarily surrender his controlled substances privileges. The indictment alleges that in August 2009 he leased three storage units at West Kellogg Stor-Al in Wichita, where he stored personal property and controlled substances including Fentanyl, Actiq, Lortab Elixer, Ketamine, Versed, Midazolam, Brevital Sodium, Diazepam, Stadol and Niravan. The indictment alleges he continued to possess the controlled substances until November 2012 when his access to the storage units was revoked because he stopped making the lease payments.

The indictment also alleges that on April 17, 2013, Simons possessed a .32 caliber pistol and ammunition. Simons initially was charged with that crime in a criminal complaint filed May 10 in U.S. District Court in Wichita.’

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

John L. Gagliardo, 60, Pittsburg, Kan., and George Washington, 50, Pittsburg, Kan., are charged with two counts of attempted mail fraud and two counts of attempted wire fraud. In addition, Gagliardo is charged with 10 counts of making false statements to the FBI. The crimes are alleged to have occurred in 2010 and 2011 in Crawford County, Kan.

The indictment alleges that while Gagliardo was employed as the 911 Director for Crawford County, Kan., he and Washington, who owned Washington Electronics in Pittsburg, devised a scheme to fraudulently obtain bids to multiple local governments for 911 equipment or storm warning equipment under the name of Washington Electronics. They submitted fraudulent bids using the names of fictitious companies such as K-Communications of Scammon, Kan., and K-Sirens of Scammon, Kan., to make it appear multiple competitive bids had been submitted. In reality, the fictitious bids were always higher in costs than the bids presented by Washington Electronics, ensuring that Washington Electronics would be the winning bidder.

If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each of the wire fraud and mail fraud charges. In addition, Gagliardo faces a maximum penalty of five years and a fine up to $250,000 on each count of making a false statement to investigators. The KBI and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.

John Noon, 65, is charged with one count of armed bank robbery. The indictment alleges that on May 4, 2013, he robbed the Community America Credit Union on Parallel Parkway in Kansas City Kan.

If convicted, he faces a maximum penalty of 25 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the FBI investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

Paula J. Sargent, 47, Ransom, Kan., is charged with embezzling funds while working for the U.S. Postal Service. The crime is alleged to have occurred April 23, 2013, in Ness County, Kan.

If convicted, she faces a penalty of up to a year in federal prison on the misdemeanor charge. The USPS - OIG investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.

Dallas E. Izzard, 32, Wichita, Kan., is charged with one count of possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a firearm with an obliterated serial number. The crimes are alleged to have occurred in April and May 2013 in Sedgwick County, Kan.

Upon conviction, the crimes carry the following penalties: Possession of a firearm in furtherance of drug trafficking: A maximum penalty of five years in federal prison and a fine up to $250,000.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $250,000.
Possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm with an obliterated serial number: Not less than five years and a fine up to $250,000.

The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.

Terry L. Wood, 53, Topeka, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of maintaining a residence in furtherance of drug trafficking at 1549 SW Brunswick Road in Topeka, which is within 1,000 feet of McCarter Elementary School. The crimes are alleged to have occurred in April and May 2013 in Shawnee County, Kan.

If convicted, he faces a maximum penalty of life in prison and a fine up to $20 million on the possession charge and a maximum penalty of life and a fine up to $40 million on the charge of maintaining a residence in furtherance of drug trafficking. The Topeka Police Department, the Kansas City, Kan., Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.

Shawn Turner, 30, is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred March 15, 2013, in Shawnee County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department Patrol Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.

Ericka Murillo-Aguilar, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. She was found May 3, 2013, in Sedgwick County, Kan.

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

Leslie Lyle Camick, 57, a citizen of Canada, is charged with one count of mail fraud, five counts of aggravated identity theft, one count of immigration document fraud, one count of making a false statement to the U.S. government, one count of making a false statement on a bank application and one count of bank fraud. The crimes are alleged to have occurred at various times from October 2005 to April 2013 in Sedgwick County, Kan.

Upon conviction, the crimes carry the following penalties: Mail fraud: A maximum penalty of 20 years in federal prison without parole and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutively to any underlying sentence and a fine up to $250,000.
Immigration document fraud: A maximum penalty of 15 years and a fine up to $250,000.
Making a false statement to the U.S. government: A maximum penalty of five years and a fine up to $250,000.
Making a false statement on a bank application: A maximum penalty of 30 years in federal prison and a fine up to $250,000.
Bank fraud: A maximum penalty of 30 years and a fine up to $250,000.

ICE Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Robert L. White, 31, is charged with one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred May 21, 2013 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 charge of unlawful possession after a felony conviction and a maximum penalty of 10 years and a fine up to $10,000 on the shotgun charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.

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

TOPEKA, KAN. – A pharmacist from Tennessee has pleaded guilty to substituting a cheaper drug imported from China for the iron sucrose that the Federal Drug Administration has approved for kidney dialysis patients, U.S. Attorney Barry Grissom said today. The misbranded drug was administered to kidney dialysis patients in Kansas.

Robert Harshbarger, Jr., 53, Kingsport, Tenn., who was doing business as American Inhalation Medication Specialists, Inc., pleaded guilty to one count of distributing a misbranded drug and one count of health care fraud. In his plea, he admitted that as a result of the fraud kidney dialysis patients treated by Kansas Dialysis Services, L.C., received iron sucrose that had not been certified by the FDA to meet quality and safety standards.

Although there were no reports of harm to patients, the crime put patients at risk because the FDA cannot assure the safety and effectiveness of products that are not FDA approved and come from unknown sources or foreign locations.

Harshbarger admitted that health care benefit programs paid more than $848,000 for the misbranded iron sucrose he distributed from 2004 to 2009. Harshbarger misrepresented the iron sucrose drug as Venofer, which is the only iron sucrose drug approved by the FDA for both pre-dialysis and post-dialysis patients.

Harshbarger purchased iron sucrose from Chinese companies including Qingdao Shenbang Chemical Company in Qingdao, China, and Shanghai Rory Fine Chemicals Co., Ltd., in Shanghai, China. The iron sucrose from China was cheaper than purchasing Venofer.

Sentencing is set for Nov. 4. Both parties have agreed to recommend a sentence of 48 months in federal prison, restitution of approximately $848,504, a criminal fine of $25,000, and a forfeiture judgment of $425,000 to be paid prior to sentencing.

Grissom commended the Food and Drug Administration, the Dept. of Health and Human Services, Office of Inspector General and Assistant U.S. Attorney Tanya Treadway for their work on the case.

TOPEKA, KAN. – Two Topeka men have pleaded guilty to federal charges in separate armed robberies, U.S. Attorney Barry Grissom said today.

Johnnie Lee McCall, 28, Topeka, Kan., pleaded guilty to one count of aiding and abetting commercial robbery and one count of aiding and abetting brandishing a firearm in connection with a March 1, 2013, robbery at a Little Caesars Pizza.

Jordan Christopher Lucas, 26, Topeka, pleaded guilty to one count of commercial robbery and one count of brandishing a firearm in connection with a Feb. 27, 2013 robbery at Baskin Robbins, 4400 S.W. 21st in Topeka.

In his plea, McCall admitted that on March 1, 2013, he was riding in an automobile with co-defendant Alonzo Lax and others when he gave Lax a firearm and directed him to rob the Little Caesars Pizza at 2620 S.W. 6th Street, Suite B, in Topeka. Lax entered the restaurant brandishing the firearm. After taking money from the clerks, Lax got back in the car and the men fled the scene. The men later divided up the money from the restaurant.

Police later recovered the handgun, cash and clothing from the robbery.

McCall is set for sentencing Aug. 19. Both parties have agreed to recommend a sentence of 180 months in federal prison.

Lucas is set for sentencing Sept. 3. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge, and a penalty of not less than seven years and a fine up to $250,000 on the firearm charge.

Co-defendants in the case include: Alonzo Lax, 26, Topeka, who pleaded guilty to robbery and brandishing a firearm during the robbery at Little Caesars. He is set for sentencing Aug. 13.
David Wigfall, 27, Topeka, who is awaiting trial.

Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag 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.

TOPEKA, KAN. – A Topeka man has pleaded guilty to a federal firearm charge, U.S. Attorney Barry Grissom said today.

Taron Alonzo Huggins, 24,Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that the investigation began Jan. 25, 2013, when the Topeka Police Department received a report of a shooting in central Topeka.

Hours after the shooting, police attempted to stop a car carrying Huggins and another man, Michael Whitfield. The vehicle eluded officers by going the wrong way on an off-ramp to Interstate 70. Shortly after officers discontinued the pursuit they were called to an accident at the off ramp involving the car Huggins and Whitfield had occupied.

Officers learned that a .45 caliber pistol had been discarded from the car and left near the scene of the accident. They recovered the gun and arrested Huggins at a restaurant near where the accident occurred. Huggins was prohibited by federal law from possessing a firearm because of a prior felony conviction.

Whitfield was charged separately in Shawnee County District Court.

Huggins is set for sentencing Aug. 19. He faces a penalty of not less than 15 years in federal prison. Grissom commended the Topeka Police Department, the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Jared Maag for their work on the case.

WICHITA, KAN. – A man from McPherson County, Kan., has been sentenced to 260 years in federal prison for using a 9-year-old child to produce child pornography, U.S. Attorney Barry Grissom said today.

Philip Andra Grigsby, 50, Marquette, Kan., pleaded guilty as charged to eight counts of sexual exploitation of a child, one count of possession of child pornography and one count of unlawful possession of a firearm after a felony conviction.

“I want this sentence to send a message,” said U.S. Attorney Barry Grissom. “The fight against child sexual exploitation and abuse is a top priority for our office.”

Grigsby initially was charged in a criminal complaint filed in July 2012 in U.S. District Court in Wichita. The complaint stated the investigation began in Australia earlier that year when an Australian man was arrested by police in that country. Evidence in that case showed the man had received child pornography over the Internet from other men, including Grigsby in Kansas.

Investigators found email messages sent by Grigsby to the Australian, including attachments with images of child pornography. The name of a middle school was visible on a certificate in one of the photos, which helped investigators identify the location and identity of the victim. Investigators obtained other evidence when they served search warrants at Grigsby’s home. Forensic analysis of the digital media revealed hundreds of still photos and five movies showing the sexual exploitation of the minor victim, as well as other images of child pornography and evidence the defendant used a Web cam to broadcast the abuse to other offenders.

Grissom commended the FBI, the Australian Federal Police, the Marquette Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Jason Hart for their work on the case.

WICHITA, KAN. – A Wichita man was sentenced to more than 10 years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said today.

Deric D. Davin, 34, Wichita, Kan., was sentenced to 121 months in federal prison. He pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used a peer-to-peer file sharing network on the Internet to receive and distribute child pornography. In February 2012, an FBI agent in Tulsa, Okla., downloaded child pornography from Davin’s computer in Wichita.

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

TOPEKA, KAN. – A Topeka man has been charged with producing child pornography, U.S. Attorney Barry Grissom said today.

Jonathan Kearn, 38, Topeka, Kan., is charged in a federal criminal complaint filed in U.S. District Court in Topeka with one count of producing child pornography, one count of distributing child pornography and one count of possessing child pornography.

The affidavit in support of the criminal complaint says the investigation began in April 2013 when Kearn is alleged to have contacted an investigator working undercover with the Queensland Police Service in Queensland, Australia. Kearn sent the agent photographs of naked children. After being contacted by Australian police, Homeland Security Investigations (HSI) Cyber Crime Center, Child Exploitation Investigations Unit followed an electronic trail leading to Kearn. Investigators served a search warrant at Kearn’s residence in Topeka and seized child pornography.

If convicted, he faces a penalty of not less than 15 years and not more than 30 years on the charge of producing child pornography, not less than 5 years and not more than 20 years on the charge of distributing child pornography and not more than 10 years on the charge of possessing child pornography. Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Christine Kenney 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 Salina man has been sentenced to 78 months in federal prison on drug trafficking and firearms charges, U.S. Attorney Barry Grissom said today.

Chris Alan Martin, 46, Salina, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. After investigators arranged to buy methamphetamine from Martin, the I-70 Drug Task Force obtained a search warrant for his residence in Salina. Investigators seized methamphetamine and three handguns. Martin was prohibited by federal law from possessing a firearm following a 2008 felony conviction for possession of methamphetamine.

Grissom commended the I-70 Drug Task Force and Assistant U.S. Attorney Randy Hendershot for their work on the case.

WICHITA, KAN. – A member of a Dodge City street gang charged in a federal racketeering case has pleaded guilty, U.S. Attorney Barry Grissom said today.

Russell Worthey, 24, Dodge City, Kan., pleaded guilty to one count of conspiracy to commit racketeering and one count of possessing and discharging a firearm in a crime of violence. In his plea, Worthey admitted he was a member of the Norteno street gang when he was involved in the murder of Israel Peralta on June 8, 2009, in Dodge City. Worthey aided and abetted in the murder as well as an assault with deadly weapons upon the victims.

On the day of the murder, Worthey and co-defendant Anthony Wright were driving around Dodge City in Wright’s car. In a trailer park in the south part of town they ran across a group of Hispanic males at 201 E. McArtor, Lot 24. The males appeared to be members of a rival gang, the Surenos.

Later that day, Worthey, Wright and two other Nortenos went to the trailer park. Worthey was in the front passenger seat and Wright was driving. Two other Nortenos were riding in the back seat. When Wright parked the car, the two Nortenos in the back seat got out and ran toward the Hispanic males at Lot 24, with Worthey and Wright following. The two Nortenos in the lead fired at the men at Lot 24. Israel Peralta was struck several times by the gunfire and died from the injuries. Mariano Sorano also was struck by gunfire. The four Nortenos got back in their car and drove away from the scene.

In his plea, Worthey admitted that as a member of the Nortenos he was part of an ongoing criminal enterprise. The gang used murder, robbery, assault and the threat of violence to protect and expand its operations. He was one of 23 defendants indicted in May 2012 under a federal law called the RICO Act (Racketeering Influenced and Corrupt Organizations Act.

Worthey is set for sentencing July 29. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the conspiracy charge, and a penalty of not less than 10 years and a fine up to $250,000 on the firearms charged.

Co-defendants who have pleaded guilty include: – Jason Najera, who was sentenced to 10 years in federal prison.
– Humberto Ortiz, who was sentenced to 46 months.
– Jose Neave, who is set for sentencing July 8.
– Anthony Wright, who is set for sentencing July 8.

Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.

WICHITA, KAN. – A former Wichita area physician who is serving time on supervised release for a drug conviction has been arrested and charged with a federal firearms violation, U.S. Attorney Barry Grissom said today.

Lawrence M. Simons, 57, Wichita, is charged with one count of unlawful possession of a firearm after a felony conviction. An investigator’s affidavit alleges that on April 17, 2013, Simons possessed a .32 caliber pistol that he gave to a bail bondsman as partial payment for bonding him out of jail.

In January, 2010, Simons, a former employee of the Schneider Medical Clinic in Haysville, Kan., was sentenced to 24 months in federal prison to be followed by three years on supervised release after he pleaded guilty to two counts of unlawfully distributing a controlled substance. In his plea, he admitted he prescribed fentanyl and that the prescriptions were not issued for a legitimate medical purpose or made in the usual course of medical practice because the person who received the prescription was not his patient.

An affidavit supporting the firearm charge alleges that in April 2013 an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives learned that Simons had given a pistol to Steven Woodin, proprietor of S&F Bail Bonds in Wichita. Simons owed Woodin for bonding him out of jail on a $25,000 bond in a Sedgwick County District Court case involving a charge of making a criminal threat.

Under federal law, convicted felons are prohibited from possessing firearms.

If convicted, Simons 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 Alan Metzger is prosecuting.

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

TOPEKA, KAN. – A Topeka man has pleaded guilty to a federal charge of robbing a commercial store , U.S. Attorney Barry Grissom said today.

Alonzo Nathan Lax, 26, Topeka, Kan., pleaded guilty to one count of robbery and one count of brandishing a firearm in a crime of violence. In his plea, Lax admitted that on March 1, 2013, he participated in the robbery of Little Caesars Pizza at 2620 SW Sixth, Suite B, in Topeka.

Sentencing is set for Aug. 5. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge; and a penalty of not less than seven years, consecutive to the underlying penalty, on the firearms charge.

Co-defendants include: Johnnie Lee McCall, who is scheduled for a change of plea hearing May 20.
Jordan Christopher Lucas, who is awaiting trial.
David Pierre Wigfall, who is awaiting trial.

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

TOPEKA, KAN. – A man from Manhattan, Kan., has pleaded guilty to taking part in an armed robbery that set in motion a series of events leading ultimately to a deadly arson in which a Kansas State University researcher died, U.S. Attorney Barry Grissom said today.

Dennis James Denzien, 20, Manhattan, Kan., pleaded guilty to one count of aiding and abetting a robbery. In his plea, Denzien admitted that on Feb. 6, 2013, he drove co-defendant Frank Joseph Hanson to Dara’s Fast Lane at 1816 Claflin Road in Manhattan. Wearing a mask and brandishing a revolver, Hanson entered the store. After Hanson robbed the store, Denzien drove him away from the scene of the robbery.

Later that day, Riley County Police Department officers served two search warrants at a residence where Denzien lived with another defendant, Patrick Martin Scahill. Ultimately, investigators recovered a mask, gloves, a backpack and a firearm used in the robbery.

TOPEKA, KAN. – Three men have been charged in separate cases in federal court in Kansas with failing to register as sex offenders, U.S. Attorney Barry Grissom said today.

Indictments allege each of the men failed to register as required by the federal Sex Offender Registration and Notification Act.

The National Center for Missing and Exploited Children estimates more than 700,000 sex offenders reside in the United States and more than 100,000 are classified as noncompliant or unregistered. More information is available at the National Sex Offender Public Web Site at www.nsopw.gov

Charged in separate cases were:

Billy Joe Lock, 69, Prairie Village, Kan., who was convicted in San Bernandino, Calif., on a charge of lewd and lascivious acts against a child under 14.
Jermaine Smith, 41, Brookfield, Mo., who was convicted in Wyandotte County District Court of attempted aggravated indecent solicitation of a child.
Bobby Moore, 31, Temple Hills, Maryland, who was convicted in Reno County District Court of aggravated indecent solicitation of a child and aggravated indecent liberties.

If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Prosecuting are Assistant U.S. Attorney Kim Martin and Assistant U.S. Attorney Jason Hart.

OTHER INDICTMENTS

Kurt Kingsley, 30; Kyle Falkner, 30; Patricia Dornbrack, 32; and Kimberly Hogan, 36, are charged with conspiring to distribute methamphetamine. The crime is alleged to have occurred April 25, 2013, in Overland Park, Kan.

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

Elizabeth Pittman, 51, Kansas City, Kan., is charged with one count of theft of mail by a U.S. Postal Service employee. The crime is alleged to have occurred Jan. 10, 2013, in Johnson County, Kan.

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

Marco Antonio Perez-Renya, 23, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after having been deported. He was found April 9, 2013, in Kansas City, Kan.

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

Allen Omar Hernandez-Maradiaga, 27, a citizen of Honduras, is charged with unlawfully re-entering the United States after being deported. He was found April 30, 2013, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000. ICE - HSI investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Alfredo Muniz-Luna, 37, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being deported. He was found March 18, 2013, in Kansas City, Kan.

If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Kim Martin is prosecuting.

Jimy Flores, 33, Chicago, Ill., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 16, 2013, in Kansas City, Kan.

If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Michael James Edwards, 35, Lawrence, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred April 28, 2013, in Lawrence, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Lawrence Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.

Donald G. Copeland, 29, is charged with one count of unlawfully carrying a firearm in furtherance of a drug crime and one count of possession with intent to distribute marijuana. The crimes are alleged to have occurred March 2, 2013, in Leavenworth, Kan.

If convicted, he faces a penalty of not less than five years in federal prison and a fine up to $250,000 on the firearm charge, and a maximum penalty of five years and a fine up to $500,000 on the drug charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.

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

WICHITA, KAN. – A Canadian man has been sentenced to eight years in federal prison for picking up a 12-year-old girl in El Dorado, Kan., and taking her out of state for the purpose of having sex with her, U.S. Attorney Barry Grissom said today.

Stewart Kenneth Cody McGill, 21, Bewdley, Ontario, pleaded guilty to one count of travel with intent to engage in illicit sexual conduct. In his plea, he admitted he drove from Canada to El Dorado, Kan., to pick up a 12-year-old girl and have sex with her. Officers later found McGill and the girl parked on a country road in Michigan. They found text messages on the girl’s cell phone in which McGill indicated he intended to have sex with her and he was aware of her age.

Grissom commended the FBI, the El Dorado Police Department, the Michigan Department of State Police and Assistant U.S. Attorney Jason Hart for their work on the case.

TOPEKA, KAN. – One Topeka man is charged in a federal indictment with making a pipe bomb and another is charged with possessing a pipe bomb, U.S. Attorney Barry Grissom said today.

Joseph E. Rogers, 35, Topeka, Kan., is charged with one count of making a destructive device. The device is described as a length of metal tubing inserted into a PVC pipe, which was then inserted into a cardboard tube. A length of pyrotechnic fuse was inserted through a hole in the wall of the pipes, and paper and lead end plugs were added along with a quantity of explosives identified as smokeless powder. The indictment says the device was capable of causing serious injury or death to persons near it if it exploded.

Kyle C. Roe, 21, Topeka, Kan., was charged with possessing the device.

The crimes are alleged to have occurred Nov. 13, 2012, in Shawnee County, Kan.

If convicted, they face 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 Richard Hathaway is prosecuting.

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

KANSAS CITY, KAN. – A man from Olathe, Kan., has pleaded guilty to possessing child pornography, U.S. Attorney Barry Grissom said today.

James Christmas, 45, Olathe, Kan., pleaded guilty to one count of possessing child pornography. In his plea, he admitted he possessed more than 12,000 images and 26 videos of child pornography on computer media. The investigation began in September 2010 when his estranged wife told the Olathe Police Department that she found child pornography on computer media belonging to Christmas. Investigators obtained a search warrant and found the images. The National Center for Missing and Exploited Children identified more than 1,300 images of known child victims living outside of Kansas in Christmas’ collection,

Sentencing is set for Aug. 12. Christmas faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Olathe Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.

TOPEKA, KAN. – A Topeka man has been indicted on drug trafficking and gun charges, U.S. Attorney Barry Grissom said today.

Michael Richard Rupp, 27, Topeka, Kan., is charged with two counts of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in 2012 and 2013 in Shawnee County, Kan.

Upon conviction, the crimes carry the following penalties: Possession with intent to distribute methamphetamine: A maximum penalty of 20 years and a fine up to $1 million on each count.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a maximum penalty of $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.

Ryan M. Hawley, 24, Winfield, Kan., is charged with one count of unlawful possession of ammunition after a felony conviction. The crime is alleged to have occurred Nov. 14, 2012, in Shawnee County, Kan.

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

Tyrone J. Lewis, Sr., 33, Topeka, Kan., is charged with one count of unlawful possession of ammunition after a felony conviction. The crime is alleged to have occurred Jan. 19, 2013, in Shawnee County, Kan.

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

Bilal Keys, 43, Topeka, Kan., is charged with unlawful possession of a firearm after felony convictions. The crime is alleged to have occurred March 22, 2013, in Shawnee County, Kan.

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

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

WICHITA, KAN. – Seven people in Wichita have been charged in a federal mortgage fraud case, U.S. Attorney Barry Grissom said today.

An indictment unsealed here today alleges the scheme involved straw buyers and straw sellers, false loan applications and false supporting documentation submitted to lenders. Victims of the fraud included numerous banks, the Federal Housing Administration, the Federal Deposit Insurance Corporation (FDIC), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

The following defendants were named in the indictment: Manjur Alam, 45, Wichita, Kan., who is charged with one count of conspiracy, six counts of wire fraud, one count of bank fraud, one count of making a false statement to the Department of Housing and Urban Development and one count of money laundering.
Janice Young, 26, Wichita, Kan., who is charged with one count of conspiracy, one count of wire fraud and one count of making a false statement to HUD.
Bruce Dykes, 44, Wichita, Kan., who is charged with one count of conspiracy and two counts of wire fraud, Christopher Ginyard, 27, Wichita, Kan., who is charged with one count of conspiracy and one count of wire fraud, Henry Pearson, Sr., Wichita, Kan., who is charged with one count of conspiracy and one count of wire fraud.
Henry Pearson, Jr., 28, Wichita, Kan., who is charged with one count of conspiracy and one count of bank fraud.
Steven Pelz, who is charged with one count of conspiracy and one count of wire fraud.

The indictment alleges that Alam, whose realtor license had been suspended and who was on probation for a federal conviction, was the leader of the conspiracy. He used straw sellers to purchase homes and flip the properties to straw buyers. He recruited sellers from his homeland of Bangladesh. He lured the straw sellers with promises of quick and easy profits, while he recruited straw buyers with the prospect of using the houses as investments while promising them kickbacks.

The indictment also alleges: – Alam guided each straw buyer through the purchase process, acting as the buyer and seller agent, even though his realtor license was suspended. He falsely represented his wife as the realtor.
– The defendants were unqualified to receive mortgage loans for the homes they bought and each of them made false statements in their loan applications.
– Alam caused false Verification of Employment information and false Verification of Rent information on straw buyers to be submitted to lenders.
– None of the straw buyers used the homes as their primary residence although each indicated in loan applications that the homes would be a primary residence.
– Alam and the straw buyers submitted false invoices for repairs to title companies for property improvements.
– The proceeds from the fraudulently obtained loans resulted in losses to lenders of more than $221,000.

Upon conviction the crimes carry the following penalties: Conspiracy: A maximum penalty of 20 years in federal prison 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.
Bank fraud: A maximum penalty of 30 years and a fine up to $250,000.
Making a false statement: A maximum penalty of five years and a fine up to $250,000.
Money laundering: A maximum penalty of 10 years and a fine up to $250,000.

Investigating agencies included the Internal Revenue Service, Housing and Urban Development - OIG, and the Federal Housing Financing Agency - OIG. Assistant U.S. Attorney Aaron Smith is prosecuting.

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