Western District of Missouri

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a woman employed by a Kansas City, Mo., bank pleaded guilty in federal court today to stealing up to $1 million from her employer and to failing to pay taxes on the embezzled income.

 

Jennifer Regans, 39, of Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges her with embezzlement by a bank employee and filing a false tax return.

 

Regans was employed as an administrative assistant by Pioneer Services, the military banking division of MidCountry Bank in Kansas City, Mo. Pioneer Services is a finance company that exclusively serves the military community, providing unsecured loans, promoting financial literacy and other financial services. Regans was terminated on July 18, 2012, after the embezzlement was discovered.

 

By pleading guilty today, Regans admitted that she embezzled at least $500,000 from her employer from Nov. 30, 2007, to July 2, 2012. The government believes the actual loss amount may be as much as $1,013,980. Regans also admitted that she did not pay taxes on the embezzled funds, although the IRS concluded that she should have paid a total of at least $139,746 in federal income taxes during that time frame.

 

As an administrative assistant, Regans had access to an administrative credit card account for charging company expenses related to her duties. Regans admitted that she embezzled $84,989 via her corporate American Express card and that she purchased another $75,380 worth of American Express gift cheques that were deposited to her personal bank accounts. Pioneer Services found that she embezzled $828,045 on her American Express corporate card.  The federal investigation matched up Regans’ expenses against the expenses she listed in the company ledger, and noted which entries were altered.  The total amount that the government argues that she certainly embezzled is at least $575,114.  The total amount of possible fraud, adding in the charges the company deemed fraudulent (but the government was unable to confirm), is $1,013,980. The actual amount of loss and the actual amount of taxable income that was unreported will be left open for the court to determine at Regans’ sentencing hearing.

 

According to today’s plea agreement, Regans’ fraud was discovered when the bank received a notice from American Express about a past due corporate credit card that was held by Regans. The accounting department noted that Regans had several apparent personal charges on her corporate credit card and an audit was conducted. The audit revealed that Regans had been making personal expenditures on her corporate American Express since 2007. She then submitted cost allocation reports that disguised her personal expenses as business in nature. The statement balances and sums of the application spreadsheets submitted by Regans were identical, but the description of the expenses did not match.

 

Regans self-prepared her federal income tax returns from 2008 to 2012 and submitted them online. The embezzled funds were knowingly omitted from Regans’ federal income tax returns, which resulted in an additional tax due and owing of $139,746 based upon the government’s position that she embezzled at least $575,114.

 

Under federal statutes, Regans is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1.1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that seven Springfield, Mo., residents are among 13 defendants who have been indicted for their roles in a conspiracy to receive more than $340,000 in fraudulent income tax refunds.

 

Cherie Christine Dupuis, 42, Claudia Dorsey, 33, Travis L. Ashmead, 29, Amanda Leigh Boyd, 32, Johnny L. Cooper, 25, Lisa Lorre Dehaven, 34, and Jeannie Marie Rhodes, 33, all of Springfield; Shawna Marie Hughey, 36, of Joplin, Mo.; Delbert L. Allen, 36, of Pleasant Hope, Mo.; William Joseph Coonce, 28, of Otterville, Mo.; Asia Michelle Couchman, 26, of Oak Grove, Mo.; Heather Nicole Drennen, 31, of Cameron, Mo.; and Jeannette R. Dunn, 47, of Huntsville, Ark., were charged in a 30-count indictment returned by a federal grand jury in Springfield on Tuesday, March 31, 2015.

 

The federal indictment alleges that 12 of the 13 defendants participated in a conspiracy to defraud the government by filing false claims for income tax refunds from February 2009 to March 2012, and all of the defendants filed false claims for income tax refunds, which resulted in them receiving a total of $340,630 in fraudulent refunds.

 

According to the indictment, conspirators obtained the identification information of individuals, including their names and Social Security numbers, and used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators allegedly shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information, the indictment says, to enable them to falsely claim dependents on their returns.

 

According to the indictment, Dupuis received a $5,135 refund in 2009, a $9,174 refund in 2010, a $9,437 refund in 2011 and a $10,507 refund in 2012. All of these refunds were fraudulent, the indictment says, because they claimed employment income and withholdings that were false. Other conspirators received fraudulent refunds of similar or larger amounts, the indictment says, then gave Dupuis as much as half of their illegal proceeds.

 

Dorsey allegedly made false claims by filing fraudulent income tax returns for herself and two others. Dorsey also allegedly allowed Dupuis to use her laptop computer to file false federal income tax returns and allegedly allowed Dupuis to list her mailing address on false federal income tax returns filed by the defendants. Conspirators allegedly provided false and misleading statements to law enforcement officers when they were questioned about their roles and actions in the conspiracy.

 

Drennen is charged in a single count of making a false claim by filing a fraudulent income tax return in the name of another person, claiming a refund to which she was not entitled. In addition to the conspiracy, each of the other defendants is charged in various counts of making false claims by filing fraudulent income tax returns.

 

Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man and a Lee’s Summit, Mo., woman pleaded guilty in federal court today to transporting an individual across states lines for prostitution.

 

Milton Charles Wilson, also known as “Barbwire,” 59, of Kansas City, and Kayla Pinkerton, also known as “Foxy,” 19, of Lee’s Summit, pleaded guilty in separate appearances before U.S. District Judge Gary A. Fenner to interstate transportation for prostitution.

 

By pleading guilty today, Wilson and Pinkerton admitted that they transported an individual across state lines to engage in prostitution in Kansas in December 2013.

 

Wilson advertised the victim for prostitution on Backpage.com and paid for a hotel room at the American Inn in North Kansas City, Mo. Wilson transported Pinkerton and the victim to various locations in Missouri and Kansas, including at least two trips to Overland Park, Kan., for the purpose of prostitution.

 

Pinkerton admitted that she took photographs of the victim and later uploaded them to the escort section of Backpage.com.

 

Under the terms of today’s plea agreements, Wilson will be sentenced to 10 years in federal prison without parole and Pinkerton is subject to a maximum sentence of 10 years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department, the FBI, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two defendants have pleaded guilty in federal court to crimes related to the distribution of thousands of kilograms of synthetic marijuana, commonly referred to as K2.

 

Sharon Elizabeth Harrington, 27, of Bunceton, Mo., and Chadwick James Schlicht, 44, of Osage Beach, Mo., pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Monday, March 31, 2015.

 

Harrington pleaded guilty to participating in a mail fraud conspiracy in Boone County, Mo., from March 2011, to December 2013. Harrington, who was the manager and ran the day-to-day operations of Impulse Market, LLC, was responsible for overseeing the manufacturing process for what was falsely labeled as “incense” or “potpourri” and was labeled “not for human consumption.” Harrington admitted that this “incense” or “potpourri” was actually synthetic cannabinoids mixed with acetone then sprayed onto a plant-like material. These substances, which were mailed or delivered by commercial carrier, were intended for human consumption as a drug in order to obtain a physiological effect of a high. Harrington admitted that she conspired to defraud the Food and Drug Administration and the public by mailing products that were misbranded and bore false and misleading labeling.

 

Based upon the invoices, bank records, and products seized by law enforcement, Harrington (through her employment with Impulse Market), oversaw the manufacture, sale and distribution of synthetic cannabinoid products, which were produced from approximately 167 kilograms of synthetic cannabinoids obtained from China. Harrington admitted that she sold, in aggregate, multiple kilogram quantities of synthetic cannabinoid products.

 

In one example cited in the plea agreement, Harrington mailed a parcel of synthetic marijuana to a business in Oklahoma on May 6, 2013. In return for the products, Impulse Market was paid $89,458.

 

Schlicht pleaded guilty to participating in a conspiracy to distribute a controlled substance.

 

Schlicht admitted that items seized from his residence by Missouri State Highway Patrol troopers were intended for the manufacture of synthetic marijuana. State troopers executed a search warrant at Schlicht’s residence on Oct. 27, 2012. They seized $1,840, three firearms, numerous packages of synthetic marijuana, and numerous materials related to the manufacture of synthetic marijuana (including packaging materials, bulk amounts of plant-like materials, labels, cans of acetone and two bags containing a total of more than 1.4 kilograms of synthetic powder that is a controlled substance analogue.

 

Under federal statutes, Harrington and Schlicht are each subject to a sentence of up to 20 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the  Brookfield, Mo., Police Department.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Republic, Mo., man pleaded guilty in federal court today to stealing 21 handguns from an Ozark, Mo., pawn shop.

 

Michael Cameron Heston, 26, of Republic, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to aiding and abetting in the theft of a firearm from a licensed firearm dealer.

 

Co-defendant Daryl Bradley Maples, 28, of Springfield, Mo., has pleaded guilty to the same charge. Heston and Maples admitted that they broke into Sutton Gun and Pawn, 3994 N. 20th St., Ozark, by breaking out the glass front door on Dec. 21, 2012. They stole 21 handguns and various amounts of ammunition. They then went to Maples’s residence, where they divided the spoils of the burglary and made plans to trade the stolen firearms for cash or drugs.

 

When Maples was arrested on Dec. 26, 2012, he had in his possession two of the firearms that were stolen in the pawn shop burglary, an F.N. 9mm pistol and a Colt .38-caliber revolver, as well as assorted ammunition.

 

Under federal statutes, Heston and Maples are each subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozark, Mo., Police Department and the Springfield, Mo., Police Department.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former mail carrier who worked at the Rogersville, Mo., post office pleaded guilty in federal court today to stealing mail that contained cash and gift cards.

 

Margi J. Greek, 39, of Omaha, Ariz., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to the theft of mail matter by an officer or employee. Greek was a substitute rural carrier from Nov. 30, 2013, until her termination on Nov. 21, 2014, for theft of mail.

 

By pleading guilty today, Greek admitted that she targeted incoming and outgoing mail that she believed contained cash and gift cards on her Rogersville route from May 1 through Nov. 21, 2014.

 

According to today’s plea agreement, several customers on the route complained about numerous pieces of missing mail. The missing mail was concentrated to a limited area and occurred only when Greek was delivering the mail. One resident agreed to cooperate with an investigation. Federal agents prepared an outgoing piece of mail with a delivery address in Lee’s Summit, Mo. The piece of mail contained a greeting card, $20 and a Walmart gift card.  On Oct. 18, 2014, the customer placed the piece of mail in her mailbox for Greek to pick up and deliver.  Agents observed Greek pick up the piece of mail from the customer’s mail box but the mail item was never delivered to the address in Lee’s Summit. The Walmart gift card was redeemed at Murphy’s Oil in Ozark, Mo., and video surveillance showed Greek redeeming the gift card to purchase gasoline.

 

A second piece of mail addressed to a non-existant Rogersville address with a return address from Kansas City, Mo.  The piece of mail contained a Walmart gift card and was placed with the other mail. Greek sorted and delivered the mail on Nov. 8, 2014, but the item was not returned to the original sender as is proper U.S. Postal procedure. The Walmart gift card was redeemed at a Walmart store in Harrison, Ark.  Photos and video surveillance showed Greek redeeming that gift card.

 

When agents interviewed Greek and searched her vehicle they found six unopened pieces of first-class mail and six pieces of standard mail, which contained gift cards from Visa and Walmart. Greek estimated that she stole and used approximately $200 in gift cards and $200 in cash from the mail, which she used to buy gasoline and food.

 

Under federal statutes, Greek is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Service, Office of the Inspector General.

JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Linn, Mo., man has been indicted for illegally possessing firearms.

 

Charles Howard Trimble, 58, of Linn, was charged with two counts of being a felon in possession of a firearm in an indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Feb. 25, 2015. The indictment was unsealed and made public today upon Trimble’s arrest and initial court appearance.

 

The federal indictment alleges that Trimble was in possession of 12 firearms on Dec. 4, 2012, including a Gewehr bolt-action 8mm rifle, an Armscor .38-caliber revolver, a Winchester semi-automatic .22-caliber rifle, a Harrington and Richardson .30-06-caliber rifle, a Remington semi-automatic .22-caliber rifle, a Mossberg pump action .410-caliber shotgun, a Mossbergt pump action 12-gauge shotgun, a Marlin bolt action .22-caliber rifle, a Remington semi-automatic 12-gauge shotgun, a Ruger semi-automatic .40-caliber pistol and an EIG .22-caliber revolver with no serial number.

 

The federal indictment also alleges that Trimble was in possession of two firearms on Sept. 20, 2013, including a Taurus .357-caliber revolver and a Mossberg pump action 12-gauge shotgun.

 

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Trimble has two prior felony convictions for driving while intoxicated and prior felony convictions for unlawful use of a weapon and forgery.

 

Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Linn, Mo., Police Department, the Osage County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an oncologist who operated a clinic in Joplin, Mo., pleaded guilty in federal court today to dispensing foreign, misbranded drugs to his cancer patients.

 

Robert L. Carter, 74, of Carthage, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with buying and selling misbranded prescription drugs.

 

Carter was the president and medical practitioner of Robert L. Carter, M.D., in Joplin, from Oct. 23, 1991, to April 2, 2012. As a medical oncologist, Carter provided care and treatment for patients with cancer and blood diseases. The practice purchased prescription drugs, including chemotherapy drugs, which were prescribed by Carter and were administered and dispensed through the practice. Reimbursement for the drugs and their administration was sought from the Medicare and Medicaid programs, Tricare as well as other private health care benefit programs.

 

In April 2010, Dr. Carter began ordering prescription cancer drugs from Quality Specialty Products (QSP) in Winnipeg, Manitoba, Canada. QSP sold drugs – which had been obtained from foreign sources and which had not been approved by the U.S. Food and Drug Administration for distribution or use in the United States – to physicians and other health care providers in the United States.

 

QSP shipped misbranded and FDA-unapproved drugs to Carter at his practice in Joplin. These misbranded and FDA-unapproved drugs were administered to Carter’s cancer patients and Carter was reimbursed by government and private health insurance programs.

 

The labeling for the prescription drugs that Carter purchased from QSP was different than the versions of the drugs the FDA had approved for distribution in the United States. Among other things, they did not have labels bearing the symbol “Rx only,” and the labeling for some of the drugs was in one or more foreign languages. Some of the prescription drugs lacked mixing and use instructions in the English language.

 

Carter paid $971,854 in restitution today to Medicare, Tri-Care, Missouri Medicaid, Oklahoma Medicaid and Kansas Medicaid. Under the terms of today’s plea agreement, Carter also must forfeit to the government $1.2 million, of which $228,145 was paid today, representing the proceeds from his scheme. Carter is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations and the U.S. Department of Health and Human Services, Office of Inspector General.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three men traveling through Kansas City on Greyhound buses were indicted by a federal grand jury, in two separate and unrelated cases, for possessing large amounts of heroin and methamphetamine for distribution.

 

USA v. Rios

 

Cesar David Rios, 41, of Tujunga, Calif., was charged with possessing heroin to distribute in an indictment returned by a federal grand jury today in Kansas City, Mo. The federal indictment replaces a criminal complaint that was filed against Rios on March 17, 2015.

 

According to an affidavit filed in support of the original criminal complaint, a police detective used a drug-sniffing dog to conduct a check of the baggage compartment underneath a bus at the Greyhound bus terminal located at 1101 S. Troost Ave., Kansas City, Mo. The dog alerted to the scent of narcotics within a bag, the affidavit says, which had a claim ticket for Rios attached. A ticket counter employee paged Rios, who responded to the front counter.

 

Rios, who had a one-way ticket to Charlotte, N. Carolina, gave the detective permission to search his luggage. According to the affidavit, the detective discovered two bundles wrapped in black electrical tape hidden at the bottom of the bag, containing a total of 3.7 kilograms of heroin.

 

This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.

 

 

USA v. Sanchez, et al

 

Gilberto Moreno Sanchez, 38, address unknown, and Manuel Enrique Urena-Vega, 48, address unknown, were charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, March 25, 2015. The federal indictment replaces a criminal complaint that was filed against Sanchez and Urena-Vega on March 3, 2015.

 

The indictment alleges that Sanchez and Urena-Vega participated in a conspiracy to distribute methamphetamine. They are also charged together in one count of possessing methamphetamine with the intent to distribute.

 

Sanchez is also charged with illegally reentering the United States after having been deported. Urena-Vega is also charged with making false statements by providing a false name to law enforcement officers.

 

According to an affidavit filed in support of the original criminal complaint, a Kansas City police detective saw Sanchez and Urena-Vega get off a Greyhound bus at the Greyhound bus terminal located at 1101 S. Troost Ave., Kansas City, Mo. Sanchez gave the detective permission to search his black duffel bag, where the detective found two containers wrapped in gray duct tape. Urena-Vega also gave the detective permission to search his suitcase, where the detective found two identical containers wrapped in gray duct tape.

 

According to the affidavit, the containers in Sanchez’s duffel bag contained 2.1 pounds of cocaine and the containers in Urena-Vega’s suitcase contained 2.6 pounds of methamphetamine.

 

This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.

 

 

Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced two postal workers were indicted by a federal grand jury today, in separate and unrelated cases, for stealing thousands of pieces of mail and for stealing money from a cash drawer.

 

USA v. Thompson

 

David Thompson, 54, of Warrensburg, Mo., was charged with the delay and destruction of mail by a postal employee. Thompson, who began his career with the U.S. Postal Service in 1990, was the regular mail carrier assigned to a delivery route from the Warrensburg post office on 201 E. Gay Street.

 

Today’s indictment alleges that Thompson stole at least 20,000 pieces of mail addressed to 5,571 recipients. Thompson allegedly threw the mail into a dumpster or kept it in his house and personal vehicle rather than delivering the mail to its recipients.

 

According to the indictment, Thompson’s supervisors suspected in late 2013 that he was drinking alcohol while on duty and while delivering mail on his official route. During their investigation, postal inspectors installed a covert camera in his delivery vehicle. From Dec. 16, 2013, to Jan. 18, 2014, the indictment says, Thompson was observed on video drinking five to eight beers each day while delivering his route. He allegedly hid the beers in his mail satchel and poured them into a cup, which he kept in his cup holder. The camera also revealed that Thompson was not delivering all of his mail, the indictment says, and that he was either throwing the mail away into a dumpster, or keeping it in his house and personal vehicle.

 

Postal inspectors recovered four black plastic trash bags of mail from the dumpster behind the Elk’s Lodge (where Thompson is a member and serves as Exalted Ruler) located at 822 E. Young Ave., Warrensburg, on Jan. 17, 2014. The four bags contained 44 pieces of first-class mail, 57 pieces of periodical mail and 463 pieces of standard mail.  Based on the postmarks, the indictment says, it was confirmed that this mail should have been delivered by Thompson the week of January 11, 2014.

 

Thompson allegedly threw additional pieces of mail into dumpsters and secreted mail to his residence and to his personal vehicle, in order to save time and to enable him to complete his route on time, and because secreting and throwing away some of the mail made for smaller bundles of mail, which were easier for him to handle.

 

USA v. Crisp

 

Jacob Crisp, 24, formerly of Kansas City, Mo., was charged with misappropriating federal postal funds.

 

According to today’s indictment, Crisp was a sales and service distribution associate working at the front counter of the North Kansas City, Mo., post office. From June 3, 2013, to Feb. 11, 2014, Crisp allegedly engaged in a scheme to void $5,040 worth of retail transactions in the post office’s computer system and replace them with no-sale transactions. This allowed him to embezzle the money paid by customers for post office products, including stamps, the indictment says.

 

The indictment cites several instances in which Crisp was observed on video conducting sales transactions, but hitting the “void” key so that the sale wasn’t recorded in the computer terminal. Crisp was also observed on video taking money from the cash drawer and putting it in his pocket, the indictment says.

 

These cases are being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. They were investigated by the U.S. Postal Service Office of Inspector General.

 

Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former airport baggage handler whose lost cell phone was discovered at a Dallas, Texas airport – along with images of child pornography – was sentenced in federal court today.

 

            Jason W. Duncan, 34, of Platte City, was sentenced by U.S. District Judge Brian C. Wimes to six years and six months in federal prison without parole.

 

            On Sept. 18, 2014, Duncan pleaded guilty to attempting to receive child pornography.

 

In 2012 Jason Duncan worked as a baggage handler for Southwest Airlines at Kansas City International Airport. On March 12, 2012, Duncan was loading bags on a plane when he accidentally dropped his phone in the cargo hold of the plane that was destined for Dallas. Duncan contacted his supervisor at Southwest and requested them to look for his phone when the plane landed in Dallas. The phone was located by two baggage handlers in Dallas. As they accessed the phone to locate a telephone number, they observed what they believed to be pictures of child pornography. A Dallas detective was notified, who identified multiple images of child pornography on Duncan’s cell phone, including images of toddlers and one image of a naked child in bondage.

 

The investigation was referred to a Kansas City, Mo., police detective, who discovered additional images of child pornography on the SD memory card inside the cell phone. Duncan’s collection included multiple images of sadistic and violent sexual abuse of prepubescent children, including babies.

 

Duncan eventually admitted to searching for and saving images of child pornography to his cell phone from different sites on the Internet, and said he had been doing so for a couple of years.

 

This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Pineville, Mo., man who is a registered sex offender pleaded guilty in federal court today to producing child pornography.

 

Jeremy Wayne Law, 30, of Pineville, pleaded guilty before U.S. Magistrate Judge David P. Rush to attempting to use a minor to produce child pornography. Law, who was previously convicted of sexual abuse with a minor in New York, is a registered sex offender.

 

By pleading guilty today, Law admitted that he communicated via text messages with a 16-year-old female, identified as “T.C.,” who resided in New York. Investigators found pornographic images and videos of T.C. on Law’s computer. Law also admitted that he had twice engaged in sexual intercourse with T.C. in a vehicle and that he had sent her an image of his genitalia.

 

Under the terms of today’s plea agreement, the court is requested to impose a sentence of at least 25 years in federal prison without parole and not more than 35 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force, the Northwest Arkansas Internet Crimes Against Children Task Force, the McDonald County, Mo., Sheriff’s Department and the Hamburg, N.Y., Police Department.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

 

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Claycomo, Mo., woman who operated a real estate business was sentenced in federal court today for her role in a $5 million mortgage fraud scheme.

 

 

 

Teresa Jean Whitten, 41, of Claycomo, was sentenced by U.S. District Judge Dean Whipple to six years in federal prison without parole. The court also ordered Whitten to pay $1,527,607 in restitution.

 

 

 

On Nov. 21, 2013, Whitten pleaded guilty to wire fraud, money laundering and theft of government money.

 

 

 

Whitten was doing business under the name Leadership to Homeownership. Whitten engaged in a mortgage fraud scheme from early to mid-2007 through Feb. 23, 2009, in which mortgage lenders loaned borrowers approximately $5,088,224. Whitten obtained in excess of $400,000 from the loan proceeds.

 

 

 

Whitten solicited potential buyers by advertisements, flyers, a Web site, and other means, claiming that she had a program through which people could purchase houses without putting money down and could qualify and obtain mortgage loans for which they would not otherwise qualify. Whitten’s scheme relied on false and fraudulent loan applications and supporting documents. The false and fraudulent representations and omissions included borrowers’ income, employment, assets, liabilities and intent to occupy the property as their primary residence.

 

 

 

Loan applications falsely claimed the borrowers were making a down payment and were bringing money to closing, when in fact the funds were supplied by Whitten. As part of the scheme, Whitten gave cash to borrowers so they could obtain cashier’s checks from their banks to take to closings. From the loan proceeds, after closing Whitten received funds both for her fee and reimbursement for the funds she advanced, none of which was disclosed to the lenders.

 

 

 

In addition to the mortgage fraud scheme, Whitten engaged in a Social Security fraud scheme. Whitten received $78,964 in disability insurance benefits and auxiliary payments for her children to which she was not entitled, as well as a $250 Recovery Act payment, for a total of $79,214. Whitten concealed from the Social Security Administration that she was working in real estate, doing business as Leadership to Homeownership and earning income and money as a result of that work. She concealed her income and earnings for the purpose of obtaining federally-funded benefits she knew she was not eligible to receive

 

 

This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, HUD – Office of Inspector General, the Social Security Administration – Office of Inspector General and the FBI.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two more Kansas City, Mo., men were indicted by a federal grand jury today for their roles in a 15-member conspiracy to distribute more than $1 million worth of cocaine, methamphetamine and marijuana.

 

Jesse F. Vasquez, 40, and his brother, Jonathan Anthony Vasquez, 34, both of Kansas City, were charged in an eight-count superseding indictment returned by a federal grand jury in Kansas City, Mo.

 

Today’s indictment replaces a Nov. 18, 2014, indictment and includes the original defendants along with additional charges. Those previously charged are Christopher Brian Padilla, 30, Natalie N. Tinoco, 29, Oswaldo Ulises Lopez, 24, Edward Francis Diaz, Jr., 47, Edward Francis Diaz III, 28, Mary Eloisa Steward, 33, Heriberto Muzquiz III, 43, Nicholas Salinas, 47, and Terry L. Diaz, 50, all of Kansas City, Mo.; Sergio Ibarra-Hernandez, 44, Jose Tereso Salinas-Covarrubias, 46, and Martin Fernando Espinoza-Arevalo, 26, all of whom are citizens of Mexico residing in Kansas City, Mo.; and Adan Rogelio Hernandez-Aceves, also known as Jose Delgado-Hernandez, 44, a citizen of Mexico residing in Kansas City, Kan.

 

The federal indictment alleges that all of the defendants participated in a conspiracy to distribute cocaine, methamphetamine and marijuana from Jan. 1, 2012, to Nov. 19, 2014. The indictment alleges that conspirators distributed at least 15 kilograms of cocaine, two kilograms of methamphetamine and 1,000 kilograms of marijuana.

 

As in the original indictment, Padilla also is charged with one count of illegally possessing firearms. Padilla allegedly possessed and used a loaded .357-caliber Glock semi-automatic pistol, a Taurus .38-caliber revolver and a Glock .40-caliber semi-automatic pistol in furtherance of a drug-trafficking crime. Padilla is also charged with selling a Taurus .38-caliber revolver and a Glock .40-caliber semi-automatic pistol to a buyer who was prohibited from possessing a firearm because he was a felon.

 

Today’s superseding indictment contains several new charges against various defendants.

 

Salinas and Jonathan Vasquez are charged with possessing cocaine with the intent to distribute. Ibarra-Hernandez and Salinas-Covarrubias are charged with possessing methamphetamine with the intent to distribute.

 

Ibarra-Hernandez, Salinas-Covarrubias and Jonathan Vasquez are charged with being drug users in possession of firearms and ammunition. The indictment alleges that the three men, who were addicted to marijuana, cocaine, methamphetamine and other controlled substances, were in possession of a Ruger semi-automatic handgun, a Smith and Wesson .357-caliber handgun and ammunition.

 

Ibarra-Hernandez and Salinas-Covarrubias are charged with being illegal aliens in possession of firearms and ammunition.

 

Ibarra-Hernandez, Espinoza-Arevalo and Hernandez-Aceves are also charged with illegally reentering the United States after having been deported.

 

The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the drug-trafficking conspiracy or used to facilitate the commission of the drug-trafficking conspiracy, including a money judgment of $1,050,000 for which all of the defendants are jointly and severally liable. This sum, in aggregate, allegedly was received in exchange for the unlawful distribution of cocaine, methamphetamine and marijuana, based on a conservative average street price of $32,000 per kilogram of cocaine, $1,000 per ounce of methamphetamine and $500 per pound of marijuana and the total conspiracy distribution of at least 15 kilograms of cocaine, two kilograms of methamphetamine and 1,000 kilograms of marijuana.

 

The forfeiture allegation would also require the defendants to forfeit two residential properties owned by Salinas, a 2007 Chevrolet Avalanche pick-up owned by Hernandez-Aceves and $59,708 seized by law enforcement officers.

 

Dickinson cautioned that these charges are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy that produced and sold thousands of false identification documents to illegal aliens.

 

Luis Daniel Cabrera-Guzman, also known as “Driver,” 30, a citizen of Mexico residing in Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Cabrera-Guzman to forfeit $403,700 to the government, which represents the total proceeds from the sale of at least 7,122 counterfeit identification documents during this criminal enterprise. Cabrera-Guzman must also forfeit to the government $9,376 that was seized by law enforcement officers at the time of his arrest, and which was obtained as the proceeds of his criminal conduct.

 

Cabrera-Guzman pleaded guilty on Nov. 4, 2014, to his role in the conspiracy to provide false identification documents. According to court documents, Cabrera-Guzman has been illegally living in the United States periodically since 2001. He was deported in May 2009 and June 2009 and illegally reentered the country.

 

Cabrera-Guzman admitted that he participated in a conspiracy with Eriberto Moises Medina-Aranda, 40, of Rayville, Mo., Ulises Montiel-Lazcano,  35, of Merriam, Kan., Cesar Mujica-Aranda, also known as “Oscar Gomez,” 25, of Liberty, Mo., and Bernardino Bautista-Hernandez, 32, also known as “Brujo,” of Kansas City, Mo., all of whom are citizens of Mexico, from Sept. 1, 2013, to Feb. 21, 2014, to produce and distribute thousands of false and counterfeit identification documents that were sold to aliens unlawfully residing and working within the United States.

 

Medina-Aranda, Montiel-Lazcano, Mujica-Aranda and Bautista-Hernandez all have pleaded guilty to their roles in the conspiracy in a separate but related case and await sentencing.

 

Mujica-Aranda admitted that he managed the production of counterfeit identification documents at his Liberty apartment. He managed the production of the false identification documents and sold the documents to numerous street level dealers, such as Bautista-Hernandez and Cabrera-Guzman. Mujica-Aranda produced fraudulent Lawful Permanent Resident cards, counterfeit Social Security cards, and false driver’s licenses from various states within the United States as well as Mexican states. Conspirators produced and sold thousands of false identification documents to illegal aliens so that the illegal aliens could stay and work within the United States.

 

Cabrera-Guzman admitted that he was one of the street-level dealers who illegally sold counterfeit identification documents. The street dealers would typically pay approximately $50 for each counterfeit identification document and they would keep any excess proceeds they were able to obtain from the sale of the counterfeit documents. Cabrera-Guzman sold sets of fraudulent Lawful Permanent Resident cards and counterfeit Social Security cards for approximately $100 per document set. (The newer versions of the updated Lawful Permanent Resident cards sold for more money.) Cabrera-Guzman sold false driver’s licenses from various states within the United States as well as Mexican states for about $100 each. He also sold false Mexican consular identification cards for approximately $100 each and fake Kansas City, Mo., liquor licenses for approximately $100.

 

On Jan. 30, 2014, Mujica-Aranda threw away a white plastic bag containing shredded pieces of fraudulent identity documents in a trash can at a gas station at St. John Avenue and Belmont in Kansas City, Mo. Early the next morning, a federal agent located the bag in the trash can. The bag contained shredded pieces of fraudulent identification documents, and weighed approximately two pounds. Each piece was approximately the size of a small paper clip, and the shredded pieces were immediately recognizable as fraudulent Lawful Permanent Resident cards, Social Security cards, Missouri non-driver’s licenses and Kansas identification cards. The agent also discovered two reels of depleted color card printer ribbon within the shredded pieces. One reel had images of fraudulent Lawful Permanent Resident cards.

 

Investigators secured a total of 16 reels of depleted color card printer ribbons weighing a total of 24 pounds, which were seized from a dumpster located at a gas station, a residence in Liberty, Mo., and a storage unit in Excelsior Springs, Mo. A United States Secret Service forensic testing lab evaluated these ribbons and was able to ascertain that the ribbons contained front and back images of 3,185 Lawful Permanent Resident cards.

 

These cases are being prosecuted by Special Assistant U.S. Attorney Trey Alford. They were investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of the Inspector General, the Kansas Department of Revenue – Office of Special Investigations, the Missouri Department of Revenue – Compliance Investigation Bureau and the Clay County, Mo., Prosecuting Attorney’s Office.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Grandview, Mo., lawn care company pleaded guilty in federal court today to a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.

 

Shelton E. Lewis, also known as “Steve Johnson” or “C,” 39, of Grandview, pleaded guilty before U.S. District Judge Howard F. Sachs to extortion and money laundering.

 

Lewis is the owner of Green Results Landscape & Lawncare, LLC. Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August 2012, however, that changed. Lewis began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, the indictment says, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.

 

Lewis admitted today that he made multiple threats to injure that company’s owner, RW, as part of an extortion scheme.

 

The extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact and did not return with the agreed-upon cocaine. Lewis told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, but only received a bag of flour.

 

In August 2012, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.

 

In the fall of 2012, Lewis told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money.

 

Lewis told RW that the attorney would contact him in the future. When a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW paid the additional, exorbitant sum.

 

RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.

 

These threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.

 

After receiving the money from his victim, Lewis repeatedly engaged in a series of financial transactions involving the proceeds of a criminal offense. For example, Lewis paid $167,000 for a 2012 Lamborghini Gallardo, $61,000 for a 2005 Bentley, $65,500 for a 2007 Aston Martin, $45,595 for a 2011 Aston Martin and $23,000 for a 2013 Chevrolet Camaro; made multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., totaling more than $137,000; spent $27,708 to purchase jewelry, sunglasses, perfume and clothing from Gucci in Las Vegas; purchased a Rolex watch; and paid $100,000 to pay off a mortgage.

 

Under federal statutes, Lewis is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

By pleading guilty today, Lewis must forfeit to the government a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that has been seized from his bank accounts and the vehicles he purchased (also including a 2006 Mercedes Benz).

 

This case is being prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.

SPRINGFIELD, Mo. ‑ Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to possessing child obscenity.

 

Rusty Mann, 35, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush.

 

On the night of Oct. 21, 2011, a Springfield police detective observed Mann approach a playground on a bicycle. The detective made contact with Mann just outside the fenced area of the playground. Mann was attired in a black mini skirt and women’s knee-high boots; he was identified as the person who had been leaving soiled diapers and clothing on the playground.

 

As a registered sex offender, Mann was not permitted within 1,000 feet of school property under state law. Mann was placed under arrest at that time. Mann has prior convictions for child molestation and sexual misconduct involving a child.

 

Mann’s bicycle, backpack and fanny pack were collected from the scene. A search of the backpack yielded a cell phone, along with other items. The investigators conducted a search of the cell phone and located several images of suspected child pornography and obscene cartoon depictions of minors, including a cartoon image of a prepubescent female being sexually assaulted.

 

Under the terms of today’s plea agreement, Mann will be sentenced to 10 years in federal prison without parole, followed by a life term of supervised release. Upon release from federal incarceration, Mann will be committed to the custody of the Missouri Department of Mental Health for control, care and treatment as a sexually violent predator (under the terms of the Judgment and Order of Commitment entered in Case Number 1131-PR00937, in the Circuit Court of Greene County, Missouri, Probate Division).

 

This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department.

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit

www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former director of a shelter for victims of domestic violence in Marshall, Mo., was sentenced in federal court today for embezzling more than $100,000 from the shelter and defrauding the state on federal grants earmarked for victims of crime.

 

Deborah L. Wallace, 51, of Marshall, was sentenced by U.S. District Judge Gary A. Fenner to two years and six months in federal prison without parole. The court also ordered Wallace to pay $433,688 in restitution (including $115,219 in restitution to the Lighthouse Shelter and $268,468 in restitution to the Missouri Department of Public Safety).

 

On June 26, 2014, Wallace pleaded guilty to one count of stealing government property and one count of making false claims for reimbursement under a federal grant.

 

Wallace was the executive director of the Lighthouse Shelter, Inc., from April 1999 to April 2013. Wallace admitted that she embezzled money from Lighthouse, including money obtained from grants funded by the U.S. Department of Justice. Over a five-year period from 2008 through 2013, Wallace used Lighthouse credit cards to pay personal expenses. Wallace also made unauthorized payments on personal credit cards and her personal cell phone from the Lighthouse bank account.

 

In her position as executive director, Wallace certified that the grant applications submitted to the Missouri Department of Public Safety for federal grants – the Victims of Crime Act and the State Services for Victims Fund – were true and accurate statements in support of the grant applications. Wallace also certified that the monthly invoices made in support of disbursement of the grant monies were true and accurate. Wallace admitted that she submitted fraudulent monthly invoices. For example, she falsely claimed that employees who actually performed other duties were working in positions funded under the grants.

 

This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Justice Office of the Inspector General.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Duneweg, Mo., man was sentenced in federal court today for sexually exploiting a 4-year-old child to produce child pornography.

 

Tony Lasiter, 33, of Duneweg, was sentenced by U.S. District Judge M. Douglas Harpool to 23 years and 10 months in federal prison without parole, followed by a life term of supervised release.

 

On Sept. 4, 2014, Lasiter pleaded guilty to the sexual exploitation of a child. According to court documents, Lasiter used his cell phone to take nude photos of a 4-year-old child (identified in the indictment as “Jane Doe”) while she was in the bathtub and while she was being molested. Lasiter downloaded the photos to his laptop computer then transferred the files to an SD card. The files were discovered when the child victim’s father noticed the SD card in the computer and opened the files, according to court documents. The photos were taken in August 2013.

 

This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, the Duneweg, Mo., Police Department, the Sarcoxie, Mo., Police Department and the Jasper County, Mo., Sheriff’s Department.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two more St. Robert, Mo., residents pleaded guilty in federal court today to their roles in a Nigerian fraud scheme in which thousands of victims across the country were tricked into cashing up to $3 million in counterfeit money orders and cashier’s checks.

 

Terry L. Shupe, 38, and Nancy Madelen Peebles, 74, both of St. Robert, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to their roles in a conspiracy to commit wire fraud. The conspiracy involved counterfeit postal money orders, counterfeit cashier’s checks and numerous wires to unindicted co-conspirators in the country of Nigeria.

 

Co-defendants Lisa Kaye Barwick-Majeski, 54, who is Peebles’s daughter, and Cheryl Barber, 41, who lived with Shupe, both of St. Robert, have also pleaded guilty to participating in the conspiracy.

 

Conspirators dispatched counterfeit postal money orders and bogus cashier’s checks to thousands of victims throughout the United States. These false money orders and cashier’s checks were deposited in victims’ bank accounts after the victims were duped into believing they were paid participants as part of a “secret shopper” exercise designed for them to evaluate Wal-Mart and various money wire outlets. The victims were instructed to keep approximately $200 or more of the less than $2,000 counterfeited postal money orders or bogus cashier’s checks, and immediately wire the remaining money to the conspirators. After a few days, the counterfeited money orders or bogus cashier’s checks would be returned against the victims’ accounts as not negotiable. The victims would then be obligated to pay their banks or their financial institutions.

 

Conspirators shared most of their proceeds with a group of Nigerians who were responsible for supplying Barwick-Majeski with fraudulent postal money orders and cashier’s checks.

 

By pleading guilty today, Shupe admitted that his criminal conduct within the wire fraud conspiracy amounted to approximately $6,491 of illegal wires sent or received by Shupe. Peebles admitted that her criminal conduct within the wire fraud conspiracy amounted to approximately $38,360 of illegal wires sent or received by Peebles. Under the terms of their plea agreements, both Shupe and Peebles must pay restitution to their victims.

 

Under federal statutes, Shupe and Peebles are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Robert, Mo., Police Department.

JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Stover, Mo., man was charged in federal court today for making threats against the President of the United States.

 

Cameron James Stout, 24, of Stover was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo. Stout, who was arrested and had an initial court appearance today, remains in federal custody.

 

According to an affidavit filed in support of the federal criminal complaint, Stout threatened on several occasions to shoot and kill President Barack Obama.

 

A confidential informant approached a Morgan County sheriff’s deputy on Friday, March 13, 2015, and reported that Stout had solicited him the previous day for a rifle and assistance in his plan to shoot the president in the next few weeks, the affidavit says. The confidential informant, a former Aryan Nation member, reported that Stout said he was going to kill the president and that he was serious. According to the confidential informant, Stout said he didn’t have a high-powered rifle and needed to obtain one. The confidential informant told Stout he could put him in contact with a high-ranking member of the Aryan Nation to assist him in obtaining a rifle and to provide Stout with information which would assist him.

 

On Saturday, March 14, 2015, Stout again discussed shooting the president while he and the confidential informant worked on four-wheel ATVs. Stout drew two diagrams of the Washington, D.C., area and his shooting locations that he had identified through research on the Internet, the affidavit says, which he gave to the confidential informant (who turned them over to law enforcement). According to the affidavit, Stout told the confidential informant that he actually owns a .270-caliber Weatherby rifle with a high-powered scope that he had loaned to another person, but now has the rifle back and plans to use it to commit his crime.

 

On Monday, March 16, 2015, the confidential informant visited Stout’s residence then met him again later. According to the affidavit, they again discussed Stout’s intention to shoot the president and made arrangements for Stout to meet the confidential informant’s superior in the Aryan Nation.

 

Stout and the confidential informant met again this morning with an undercover law enforcement officer purporting to be the confidential informant’s superior in the Aryan Nation. According to the affidavit, Stout stated that his plan was to set up at Crown Center in Kansas City, Mo., and to shoot the president the next time he comes to Kansas City. Stout wanted the undercover officer to provide him with transportation to and from Kansas City. Stout allegedly stated that he was a competent shot up to 200 yards.

 

The undercover officer asked Stout if it was Stout’s plan to shoot the president, according to the affidavit, and Stout replied “Yes.” Stout allegedly told the undercover officer that he had done research for his plan on his home computer.

 

Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller and Assistant U.S. Attorney Jim Lynn. It was investigated by the U.S. Secret Service and the Morgan County, Mo., Sheriff’s Department.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was injured while setting a house on fire and forced to shed his burning pants in the street, pleaded guilty in federal court today to his role in a nearly $1.2 million arson and insurance fraud conspiracy.

 

John S. Wayne, 31, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to one count of conspiracy to commit arson, use of a fire to commit a federal crime, mail fraud and wire fraud. In addition to the conspiracy, Wayne pleaded guilty to one count of arson.

 

Wayne is among six co-conspirators – all of whom have pleaded guilty – who bought, over-insured and burned five houses in Kansas City. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was $1,196,840.

 

On April 23, 2011, the house at 4901 Agnes partially burned, and the fire was determined to be arson. Two days later, on April 25, 2011, Wayne and co-defendant Joshua Stamps, 28, of Independence, Mo., burned the house in another arson fire. This time the house was a total loss.

 

A witness saw Wayne running from the house with his pants on fire. Wayne took his pants off and left them in the street. Kansas City police detectives recovered burned sweatpants and boots from the street; DNA recovered from the pants confirmed that Wayne wore the burned pants discarded in the street. A chemical analysis established that the pants and boots had evaporated gasoline on them.

 

Wayne was admitted to Research Medical Center with severe burns to his legs later that day. Wayne told investigators that Stamps, who was driving, refused to take him to a hospital and instead took him home and bought him some burn cream. Wayne said the burn cream wasn’t going to work so he went to the hospital.

 

On June 22, 2011, as a result of false and fraudulent claims, American Family Insurance issued a check for $29,881 to Kansas City Missouri Treasurer. (This is standard procedure in event of a total loss. When the insured/owner can prove the property has been cleared of debris, the check is then refunded to the owner.) Also on June 22, 2011, American Family Insurance issued a check for $88,645 to Area Contractors, which was owned by Stamps’s mother and co-defendant, Randy Stamps, 57, of Kansas City, Mo. Area Contractors issued a purported invoice and contract for $53,000, supposedly for work done at the property. However, Area Contractors did no work.

 

Joshua Stamps was the leader of the conspiracy. Beginning in July 2007, Joshua Stamps bought houses costing from $6,500 to $15,000. He used co-conspirators as straw owners for three of the houses, while other co-conspirators helped commit the arsons and/or acted as tenants so the properties could be classified as rentals.

 

In the conspiracy that lasted until 2013, Joshua Stamps and his co-conspirators insured the houses for much more than the purchase price, in amounts from $88,000 to $307,000. Joshua Stamps and his co-conspirators made false statements on the insurance applications, such as that the houses were rented and/or occupied, that there were valuable contents in the houses, and that the houses had been renovated.

 

Joshua Stamps and his co-conspirators set fire to the houses. The listed owner of the house that burned would then claim a total loss with the applicable insurance company and would falsely claim they had no knowledge of, or involvement in, the fire.

 

Under the terms of today’s plea agreement, Wayne must pay a money judgment of $434,938, which represents the proceeds of the conspiracy. Wayne is subject to a mandatory minimum sentence of five years in federal prison without parole, up to 25 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., area men were sentenced in federal court today for their roles in a 14-year-long conspiracy to steal more than $1 million worth of trucks and trailers and their cargo.

 

Jon “Dirk” Dickerson, 57, of Raytown, Mo., and his son, Kyle Wayne Dickerson, 32, of Holden, Mo., were sentenced by U.S. Chief District Judge Greg Kays. Jon Dickerson was sentenced to 15 years and eight months in federal prison without parole. Kyle Dickerson was sentenced to nine years and two months in federal prison without parole. The court also ordered the Dickersons to pay $995,129 in restitution and a forfeiture money judgment of $1,270,089.

 

Jon and Kyle Dickerson have been in federal custody since the conclusion of a two-week trial on Feb. 28, 2014.

 

Jon and Kyle Dickerson, along with co-defendant Kenneth Ray Borders, 44, of Kansas City, Mo., were found guilty at trial of participating in a conspiracy that involved the theft of commercial trucks and trailers and their cargo in Missouri, Kansas, Florida, Arkansas, Oklahoma, and Nebraska from 1998 to December 2013. They worked together to steal trucks, trailers, and cargo and then dispose of them. Sometimes they used the trucks and trailers themselves to make money by hauling loads for customers and sometimes they sold the stolen trucks and trailers.

 

Eight additional defendants have pleaded guilty and been sentenced.

 

In addition to the conspiracy, Jon Dickerson was found guilty of three counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles. Kyle Dickerson also was found guilty of one count of aiding and abetting the transportation of stolen vehicles, two counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles. Borders also was found guilty of four counts of aiding and abetting the possession of stolen goods, one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the possession of stolen vehicles.

 

Borders was sentenced on Dec. 8, 2014, to 21 years and 10 months in federal prison without parole. The court also ordered Borders to pay $1,270,089 in restitution to 27 victims. Borders’ sentence takes into account his previous criminal history of theft of a truck, trailer and cargo in this district and the District of Nebraska. He also has numerous instances of driving without a license or with a suspended license and was under a criminal sentence for driving while revoked during the conspiracy.

 

The conspiracy involved the thefts of five Freightliner trucks and 17 trailers between 2005 and 2011. The stolen trailers included refrigerated trailers containing such cargo as 39,000 pounds of meat, 565 boxes of beef valued at $149,790, $125,000 worth of frozen ribs, and several refrigerated trailers that each contained tens of thousands of dollars’ worth of frozen chicken, including a load of frozen chicken wings valued at $59,706. Also stolen were utility trailers containing such cargo as Budweiser beer valued at $16,657, Nike shoes valued at $217,353 and 21,018 pounds of Little Sizzler sausages.

 

Stolen cargo was sold cheaply to anyone who would buy it. Some of the cargo was sold out of the back of the trailer; some of it was sold to a tow truck driver or a convenience store operator to resell.

 

Jon Dickerson often had the first right to purchase stolen trucks and trailers. In fact, Borders actually had a “shopping list” from Dickerson listing the trucks and trailers that he wanted, so that Borders could keep an eye out for them and steal them if the opportunity presented itself. Jon Dickerson had Borders steal vehicles to provide him with a supply of replacement parts for his trucks. For example, if an engine failed on one of Jon Dickerson’s trucks, he would have Borders steal a truck with a similar engine to replace it.

 

Jon and Kyle Dickerson also were involved in stealing trucks and trailers. They used them in their own trucking business, sometimes just for replacement parts with the remains sold for scrap. Kyle Dickerson had the tools, ability, and willingness to disguise the stolen nature of the trucks and trailers by altering their Vehicle Identification Numbers (VINs) so that they could be used in their trucking business without alerting authorities when they were stopped or inspected.

 

The Dickersons reduced their costs of doing business by stealing trucks and trailers themselves, or by buying stolen trucks and trailers from Borders, at a fraction of their fair market value. Since they had little financial investment in the stolen trucks and trailers, and knew that they had a readily-available and cheap supply of stolen trucks and trailers, they had little incentive to maintain and repair their fleet. As a result, their fleet wore out and had safety issues, such as problems with brakes and tires. When their fleet wore out, they simply replaced them with more stolen trucks and trailers.

 

The Dickersons did not bother to maintain and repair their trucks and trailers but continued to operate them in interstate commerce. As a result, the Department of Transportion (DOT) and other law enforcement repeatedly cited their company and drivers for failing inspections and violating regulations. The company's compliance reviews led to unsatisfactory safety ratings which led to a total of $450,000 in fines and numerous “out of service orders” directing them to cease operating in interstate commerce. The Dickersons just ignored the orders and the fines.

 

The abuse in the trucking industry not only impacts public commerce, the government charges, but also public safety. While the thefts themselves were egregious, the Dickersons’ audacious use of worn-out vehicles and not maintaining equipment such as brakes puts the public’s safety at considerable risk.

 

At a DOT roadside inspection, a Dickerson truck, trailer, or cargo could be delayed, or even impounded, if their poor record or condition prompted too many questions. The Dickersons’ scheme, however, included a way to downplay this risk. The Dickersons operated what is known in the industry as “chameleon carriers.” They simply abandoned their old company – along with its "baggage" of safety violations, “out of service” orders, and unpaid fines – and began operating with a new company under a new name. Thus, after Jon Dickerson’s company Fish and More was subject to more than $150,000 in fines and four orders to cease interstate transportation, he began operating under the name D&T Trucking. After D&T Trucking was subject to nearly $300,000 in fines and 17 orders to cease interstate transportation, the United States obtained a civil injunction and default judgment, and D&T Trucking was permanently enjoined from operating in interstate commerce. At that point, Kyle Dickerson got a DOT number for Night Line Trucking and Repair. Night Line Trucking and Repair received an unsatisfactory safety rating and an order to cease interstate transportation. The Dickersons then started operating under the name Nightline Trucking, LLC.

 

Beyond the direct losses to their victims, the Dickersons’ actions had significant impact on the trucking industry and its regulatory system. Their business morphed through four versions over 14 years - Fish and More, D&T Trucking, Night Line Trucking and Repair, and Nightline Trucking, LLC. – in an effort to avoid DOT sanctions for faulty or failed equipment that would have shut down the businesses. These business practices resulted in hundreds of vehicle stops and inspections which taxed various arms of the DOT and parallel state agencies and created extensive and expensive legal processes. The Dickersons, using their knowledge of the trucking regulations, took advantage of slow reporting and lack of federal-state consolidated record keeping to exploit the system until finally the extreme measure of an Out of Service and Record Consolidation Order was issued on July 29, 2013, putting their last company officially out of business.

 

This case was prosecuted by Senior Litigation Counsel Gregg R. Coonrod and Assistant U.S. Attorney Cindi S. Woolery. It was investigated by the Department of Agriculture – Office of Inspector General, the FBI, the Kansas City, Mo., Police Department, the National Insurance Crime Bureau, the National White Collar Crime Center, the Mid-States Organized Crime Information Center, Travelers Investigative Services, the Missouri State Highway Patrol, the Florida State Highway Patrol, and the U.S. Department of Transportation, Federal Motor Carrier Safety Administration.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Weaubleau, Mo., man has been sentenced in federal court for exploiting a minor to produce child pornography.

 

Larry Allison, 51, of Weaubleau, Mo., was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, March 10, 2015, to 17 years in federal prison without parole.

 

On Oct. 20, 2014, Allison pleaded guilty to using a minor to produce child pornography. Allison admitted that he used a minor, identified in the federal indictment as “Jane Doe,” to produce child pornography in January 2014.

 

According to court documents, Allison contacted the minor victim through a Web site, and they began exchanging text messages, which became sexually explicit. Allison and the minor victim exchanged nude photos with one another and communicated about meeting at a local hotel for sex. The conversations ended when the victim’s mother took her daughter’s cell phone and contacted police.

 

A Springfield, Mo., police detective began texting Allison, according to court documents, portraying herself as the minor victim. Law enforcement officers executed a search warrant at Allison’s residence on Jan. 30, 2014.

 

This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Hickory County, Mo., Sheriff’s Department and the FBI.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a travel agent was sentenced in federal court today for stealing $360,000 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones.

 

Calliope R. Saaga, also known as “Ope,” 40, of Saratoga Springs, Utah, was sentenced by U.S. Chief District Judge Greg Kays to five years in federal prison without parole. The court also ordered Saaga to pay $782,480 in restitution.

 

On Oct. 15, 2014, Saaga pleaded guilty to wire fraud. Saaga has also pleaded guilty to a similar $272,500 fraud scheme involving a school district in Fort Smith, Ark. He will be sentenced on that conviction, as well as related conduct for a similar $149,980 fraud scheme involving a West Memphis, Ark., school district, on March 25, 2015, in the Western District of Arkansas. The total loss for the victims in these fraud schemes was $782,480.

 

Saaga, doing business as Present America Tours, LLC, contracted with the Willard High School Band Boosters in January 2011 to provide travel arrangements for a June 2012 band trip to Hawaii. Saaga was responsible for booking airfare, lodging, transportation, meals, tours, and travel insurance for more than 300 students and chaperones. The Willard High School Band Boosters wired 12 payments of $30,000 each to Saaga between February 2011 and January 2012.

 

Saaga booked no reservations as required in the contract. Instead, as he received wire transfers from the band boosters, Saaga used the funds to finance his personal lifestyle, including at least 47 days spent gambling in Las Vegas, Nev.

 

As a result of Saaga’s diversion of funds, the Willard High School band trip was cancelled and the Willard High School Band Boosters suffered a loss of $360,000.

 

While he was spending the money of the Willard High School Band Boosters to finance his personal lifestyle, Saaga transmitted e-mails about details of the trip to the Willard High School director of bands, which lulled the band boosters into believing that their trip to Hawaii was on schedule.

 

This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by IRS-Criminal Investigation, the FBI and the Willard, Mo., Police Department.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former software programmer for the Federal Reserve Bank of Kansas City pleaded guilty in federal court today to stealing software code.

 

Hamid Reza Tahmasebi, 54, of Leawood, Kan., waived his right to a grand jury and pleaded guilty before U.S. District Judge Beth Phillips to a federal information that charges him with theft of government property.

 

Tahmasebi worked as a lead programmer for the Federal Reserve from Oct. 16, 2012, to Feb. 7, 2014. Tahmasebi admitted that, during his last week of employment, he e-mailed sensitive information to his personal e-mail accounts. Tahmasebi also admitted that he uploaded large amounts of sensitive information to his private Google Drive on-line storage account.

 

Tahmasebi admitted that he uploaded software code he was working on for the Federal Reserve to his Google Drive account. This software code was developed by the Federal Reserve as part of its role as the fiscal agent for the U.S. Treasury Department. The code taken by Tahmasebi was proprietary and owned by the Treasury Department.

 

The Federal Reserve, following Tahmasebi’s theft, launched an incident response and investigation along with an extensive code review to ensure its security. Tahmasebi acknowledged in today’s plea agreement that he owes restitution to the Federal Reserve to compensate for the cost of those actions, which the government believes totaled $246,433.

 

Under the terms of today’s plea agreement, Tahmasebi must pay restitution to the Federal Reserve Bank and a sentence of five years of probation is jointly recommended. A sentencing hearing is scheduled for July 2015.

 

This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Robert, Mo., women have pleaded guilty in federal court to their roles in a Nigerian fraud scheme in which thousands of victims across the country were tricked into cashing up to $3 million in counterfeit money orders and cashier’s checks.

 

Lisa Kaye Barwick-Majeski, 54, of St. Robert, pleaded guilty today before U.S. District Judge M. Douglas Harpool to leading the conspiracy to commit wire fraud. Co-defendant Cheryl Barber, 41, also of St. Robert, pleaded guilty to her role in the conspiracy on Feb. 10, 2015.

 

Under the terms of today’s plea agreement, Barwick-Majeski must pay up to $3 million in restitution to her victims and must forfeit $1,485,301 to the government.

 

By pleading guilty today, Barwick-Majeski admitted that she was the primary leader of a conspiracy that involved counterfeit postal money orders, counterfeit bank cashier’s checks and numerous wires to unindicted co-conspirators in the country of Nigeria.

 

Barwick-Majeski, with the help of Barber and other co-conspirators, dispatched counterfeit postal money orders and bogus cashier checks to thousands of victims throughout the United States. These false money orders and cashier checks were deposited in victims’ bank accounts after the victims were duped into believing they were paid participants as part of a “secret shopper” exercise designed for them to evaluate Wal-Mart and various money wire outlets. The victims were instructed to keep approximately $200 or more of the less than $2,000 counterfeited postal money order or bogus cashier’s check, and immediately wire the remaining money to Barwick-Majeski and her co-defendants. After a few days, the counterfeited money order or bogus cashier’s check would be returned against the victims’ account as not negotiable. The victims would then be obligated to pay their banks or their financial institutions for most of the money they wired to Barwick-Majeski and others.

 

Barwick-Majeski and her co-defendants shared most of their proceeds with a group of Nigerians that were responsible for supplying Barwick-Majeski with fraudulent postal money orders and cashier’s checks.

 

Barber admitted that she wired funds to co-conspirators in Nigeria to further the illegal scheme. Barber admitted that her criminal conduct within the wire fraud conspiracy amounted to approximately $25,129 of illegal wires sent or received by Barber. Under the terms of her plea agreement, Barber must pay restitution to her victims.

 

During the course of the investigation, according to court documents, law enforcement officers seized more than $1.7 million worth of counterfeit postal money orders. Some of those counterfeit money orders were taken directly from Barwick-Majeski and some were seized by U.S. Customs and Border Protection or intercepted en route to Barwick-Majeski.

 

In addition to the counterfeit postal money orders, law enforcement officers executed a search warrant at Barwick-Majeski’s residence on Nov. 5, 2013, and seized a parcel that contained 354 counterfeit BMO-Harris Bank cashier’s checks with a total face value of more than $1 million. According to court documents, law enforcement officers also seized $406,800 in counterfeit Mid Missouri Credit Union cashier’s checks during the investigation.

 

Under federal statutes, Barwick-Majeski and Barber are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Robert, Mo., Police Department.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman was sentenced in federal court today for aggravated identity theft and to fraudulently receiving federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.

 

Brittany Aulden Barnes, 24, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to two years and four months in federal prison without parole. The court also ordered Barnes to pay $18,774 in restitution to FEMA and $2,094 in restitution to her identity theft victims.

 

On Aug. 14, 2014, Barnes pleaded guilty to one count of disaster fraud and one count of identity theft.

 

Disaster Fraud

 

Barnes admitted that she fraudulently received disaster benefits by claiming that her residence in Joplin had been damaged by the tornado. When Barnes met with a FEMA-contracted inspector to discuss her claim on June 6, 2011, she also claimed the loss of a number of furniture items and appliances. Barnes was awarded $6,708 in disaster relief. In addition, Barnes resided at a FEMA-provided mobile home for more than a year, from September 2011 to December 2012, at a total cost to FEMA of $12,066.

 

However, Barnes admitted that the Joplin apartment was not her residence at the time of the tornado – on that date the apartment stood vacant. Barnes had rented the apartment prior to the Joplin tornado, and had occupied it along with her boyfriend, Russell Lamar Green.  However, Barnes and Green had moved out before the tornado struck. In a separate but related case, Green pleaded guilty and has been sentenced for making false statements to FEMA in a failed effort to also receive disaster benefits.

 

Aggravated Identity Theft

 

Barnes also admitted that, while working at an Applebee’s restaurant in Joplin in May 2013, she stole a co-worker’s wallet, which contained the victim’s Missouri driver’s license, Social Security card, debit card and three credit cards.

 

Barnes used the stolen identity documents to impersonate the victim on several occasions. For example, she used a counterfeit personal check (drawn on the bank account of another victim) to purchase a $269 Sony Playstation game console at Best Buy. She cashed three counterfeit $598 payroll checks (drawn on the bank accounts of two additional victims) at two Wal-Mart stores.

 

This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.

 

Disaster Fraud Hotline

 

Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man was sentenced in federal court for receiving and distributing child pornography over the Internet.

 

Jesse Lee Talley, 33, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to eight years in federal prison without parole.

 

On Oct. 21, 2014, Talley pleaded guilty to receiving and distributing child pornography. Agents with the Southwest Missouri Cyber Crime Task Force identified Talley’s computer using a peer-to-peer file-sharing program to transmit videos of child pornography over the Internet. Agents executed a search warrant at Talley’s residence and seized his computer, cell phone and numerous CDs, all of which contained images and videos of child pornography.

 

This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., couple was sentenced in federal court today for Social Security fraud.

 

Reta Jo Carpenter, 53, and her husband, Oren Daniel Carpenter, 52, both of Nevada, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Reta Carpenter was sentenced to 15 months in federal prison and Oren Carpenter was sentenced to five years of probation. The Carpenters were also ordered to pay $96,711 in restitution to the Social Security Administration.

 

On Oct. 7, 2014, the Carpenters pleaded guilty to making false statements to the Social Security Administration. Reta Carpenter, who was unemployed and disabled, had been receiving Supplemental Security Income (SSI) benefits since 1990. In 1997, she falsely claimed that Oren Carpenter no longer lived with her. When Oren Carpenter was interviewed by federal agents, he falsely stated that he did not share a residence with his wife and falsely claimed that he had been living with other family members.

 

As a result, Oren Carpenter’s annual income was no longer considered in determining Reta Carpenter’s eligibility for SSI benefits. This resulted in overpayments to Reta Carpenter totaling $99,411 as of Aug. 23, 2012.

 

This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Social Security Administration, Office of Inspector General.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of an Independence, Mo., business has pleaded guilty in federal court to failing to report business income on her federal income tax return.

 

Peggy Hennon, 57, Independence, the owner and operator of Peggy’s Tow, pleaded guilty before U.S. Magistrate Judge John T. Maughmer on Monday, March 2, 2015.  Hennon pleaded guilty to filing a false income tax return for the 2007 tax year. The government contends that Hennon failed to report more than $192,000 in business income.

 

Peggy’s Tow purchased vehicles as scrap and sold them to scrap yards in the Kansas City metro area. After the vehicles were sold to the scrap yard, Hennon either deposited the check into one of her checking accounts or cashed the check at a gas station or bank.

 

According to the plea agreement, Hennon engaged in a scheme to falsely under-report the gross receipts for her business in order to significantly reduce her tax liability. Although Hennon used a professional tax preparer, she provided the information regarding her income and expenses. Hennon cashed a significant amount of checks she received from the sale of scrap vehicles and failed to include those cashed checks on her tax returns for tax year 2007.

 

Hennon filed her federal income tax return for 2007 on Oct. 16, 2008. Hennon substantially understated her gross receipts in the amounts of $192,201 for tax year 2007. Hennon stated that she received $168,549 in gross receipts in tax year 2007 when she actually knew her gross receipts were at least $360,750. The additional tax due and owing for 2007 is $57,726.

 

Under federal statutes, Hennon is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former sheriff of St. Clair County, Mo., pleaded guilty in federal court today to stealing property recovered in criminal cases and to selling a stolen firearm.

 

Ronald E. Snodgrass, 47, of El Dorado, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to theft concerning programs receiving federal funds.

 

Snodgrass served three terms as the elected sheriff in St. Clair County, from Jan. 1, 2001, through Dec. 31, 2012. He lost his bid for reelection in 2012. During Snodgrass’s tenure, the St. Clair County Jail handled more than 100 federal inmates for a fee. This agreement with the U.S. Marshal Service provided St. Clair County with the majority of its income.

 

By pleading guilty today, Snodgrass admitted that he illegally took possession of a John Deere zero turn mower, which was recovered stolen property. The owner of the mower had reported it being stolen on Nov. 4, 2008, and received a payment of $13,638 from Chubb Insurance Company. The mower was recovered by the sheriff’s department on Aug. 14, 2009.

 

According to today’s plea agreement, the mower was in good condition and worth more than $5,000.

 

On Sept. 2, 2009, Snodgrass contacted Chubb Insurance and claimed the mower had a tow bill and storage fees of $525. At that time, the stolen mower was in the impound lot and was being held as evidence in a criminal case. There was no legal authority for Snodgrass to charge storage fees for items recovered as stolen property. Snodgrass told Chubb Insurance he would be interested in purchasing the mower in exchange for taking care of the tow bill, storage fees and payment of $500 to Chubb.

 

On Sept. 3, 2009, Snodgrass contacted Chubb Insurance and said he would like to purchase the mower. At that time, the insurance company informed him that the mower would have to be assessed for salvage. On the same day, Snodgrass contacted Chubb Insurance again and claimed the tow and storage bill of the mower was now “over $600”; he offered to take care of the tow, storage bill fees and pay Chubb Insurance an additional $500 for the stolen mower. Chubb Insurance accepted the offer from Snodgrass.

 

Snodgrass admitted today that there were never any storage fees. Under state law, any unclaimed property should have been sold at a sheriff’s auction. Instead of disposing of the mower through a public sale or auction, Snodgrass kept the mower for his personal use on his farm.

 

Under the terms of today’s plea agreement, Snodgrass must forfeit the John Deere mower and a 2009 Polaris Ranger UTV to the government. The July 22, 2014, federal indictment alleges that Snodgrass illegally obtained the Polaris Ranger on Sept. 29, 2012.

 

Under federal statutes, Snodgrass is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the Missouri State Highway Patrol and the St. Clair, Mo., Sheriff’s Department.

JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man and woman have pleaded guilty in federal court to their roles in conspiracies to distribute cocaine and crack cocaine in Boone County, Mo., and to promote prostitution in Boone County.

 

Ryan D. Wright, 39, and Courtnie Lea Goins, 25, both of Springfield, Mo., pleaded guilty in separate appearances before U.S. Magistrate Judge Matt J. Whitworth on Feb. 25, 2015, to the charges contained in a Nov. 5, 2014, federal indictment.

 

By pleading guilty, Wright admitted that he participated in a conspiracy to distribute cocaine and crack cocaine in Boone County from Jan. 2 to Aug. 6, 2014. Wright also pleaded guilty to participating in a prostitution conspiracy and to being a felon in possession of firearms and ammunition. Goins pleaded guilty to her role in a conspiracy to use telephones to promote prostitution.

 

Wright and Goins admitted they traveled to Columbia, Mo., in the spring of 2014. Wright had previously communicated with a co-conspirator in Columbia, from whom he had purchased quantities of cocaine. The co-conspirator explained to Wright how to conduct the business of distributing controlled substances, and asked Wright to supply him with a different type of employee for his prostitution business. Wright supplemented his regular income with revenue from female prostitutes. During their phone conversations, Wright agreed to bring Goins with him to Columbia for the co-conspirator to meet and ultimately to try and employ as a prostitute. During that visit, Goins and the co-conspirator both used cocaine and spent the night together.

 

When Wright and Goins returned to Springfield, they carried with them some cocaine Wright had received from the co-conspirator, which Wright converted and distributed in Springfield as crack cocaine.

 

On July 15, 2014, Wright and Goins drove to Columbia again in order for Wright to pick up some cocaine and to leave Goins there. While in Columbia, Goins agreed to have sexual intercourse with a friend of the co-conspirator, for which she would receive money in return. The friend paid Goins approximately $250 in return for sexual intercourse. Afterwards, the co-conspirator gave Goins some cocaine, which they both used.

 

Wright admitted that he received approximately half a pound of cocaine powder, which he converted into at least 112 grams of crack cocaine and distributed.

 

When Wright was arrested on Nov. 13, 2014, he was in possession of a Taurus .357-caliber revolver, a Ruger .38-caliber revolver and ammunition. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Wright has prior felony convictions for arson and possession of a controlled substance.

 

Under federal statutes, Wright is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 55 years in federal prison without parole. Goins is subject to a sentence of up to five years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Drug Enforcement Administration and the Boone County, Mo., Prosecuting Attorney’s Office.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Excelsior Springs, Mo., man who called law enforcement officers to his home for assistance – where he was helping to manufacture methamphetamine – was convicted by a federal trial jury today on charges related to his role in a conspiracy to manufacture methamphetamine.

 

Anthony Trurice Grayson, 30, of Excelsior Springs, was found guilty of participating in a conspiracy to manufacture methamphetamine from July 1 to July 16, 2013, attempting to manufacture methamphetamine, possessing pseudoephedrine to manufacture methamphetamine and maintaining a drug house.

 

Co-defendants Glenn Allen DiFalco, 51, of Kansas City, Mo., and Clarissa Nelson Cooper, 46, of Harrison, Mo., have pleaded guilty to their roles in the conspiracy. They admitted that, given the amount of pseudoephedrine seized by law enforcement officers, the conspiracy could have produced approximately three kilograms of pure methamphetamine. Three kilograms of pure methamphetamine would have a street value of more than $100,000.

 

Grayson contacted the Ray County Sheriff’s Department on July 16, 2013, and told officers he was being threatened by DiFalco. DiFalco and Cooper were homeless at the time and were staying at Grayson’s home for several days. Grayson, who had fled from his residence, told officers that DiFalco had a gun and that he feared for his life. Officers met Grayson about a half-mile from his residence; he gave them permission to enter his house and arrest DiFalco.

 

As officers were speaking to Grayson, DiFalco and Cooper approached in a Dodge truck. The vehicle abruptly turned and drove away and officers began pursuing them. When DiFalco’s vehicle stopped in a dead-end cul-de-sac, Cooper fled from the vehicle on foot and was chased by officers, who apprehended and arrested her. DiFalco was also arrested.

 

Officers searched DiFalco’s truck and found an airsoft gun and drug paraphernalia, including glass smoking pipes, syringes and a substance that was suspected to be crystal methamphetamine. DiFalco’s vehicle was so completely filled with debris and clutter that officers couldn’t adequately search it. The significant amount of items in the vehicle impeded law enforcement’s ability to recover and appropriately process the numerous items of drug paraphernalia and what was also suspected to be crystal methamphetamine. Officers therefore had DiFalco’s vehicle towed to a secured lot for further investigation.

 

Officers returned to Grayson’s home following the vehicle pursuit and observed, in plain view, numerous items of drug paraphernalia commonly used to smoke and manufacture methamphetamine. During a search of Grayson’s residence, officers located coffee filters with iodine and powder residue, a bottle of 100% household lye, small baggies normally used to package drugs, glassware/cookware and Mason jars with residue (which were altered to facilitate methamphetamine manufacture), tubing, glass smoking pipes, a white crystal-like unknown substance, weighing approximately 215.8 grams (not believed to be a controlled substance but some type of cutting agent), one bag of ground-up Cold Buster pseudoephedrine pills weighing approximately 88.8 grams and several plastic baggies containing methamphetamine, weighing approximately 53.2 grams.  Officers also located a suspected explosive device, which was later identified as a “booby-trap” device.

 

When they searched DiFalco’s vehicle the next day, officers found approximately 80,000 pills of Cold Buster pseudoephedrine hydrochloride. These pills were contained in 91 one-gallon plastic bags. They found three bags containing ground-up pseudoephedrine hydrochloride pills with a total weight of 736 grams. They also found smoking pipes, numerous handwritten recipes for various methods of methamphetamine manufacture, a butane torch, a bottle of iodine solution and several packs of iodine swabs, a laptop computer and three cell phones.

 

Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for three hours before returning the verdict to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, March 2, 2015.

 

DiFalco was sentenced on Sept. 17, 2014, to seven years and six months in federal prison without parole. Cooper awaits sentencing.

 

Under federal statutes, Grayson is subject to a sentence of up to 80 years in federal prison without parole, plus a fine up to $2.75 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez and Special Assistant US Attorney Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., EMT and a Joplin, Mo., couple are among five persons indicted by a federal grand jury yesterday in four separate and unrelated cases related to the sexual exploitation of children.

 

“Protecting the most vulnerable members of our society is a top priority of the Department of Justice,” Dickinson said. “We are committed to protecting our children from sexual predators and bringing their abusers to justice. Exploiting and abusing a child to produce pornography – as charged in each of these indictments – carries a tough mandatory minimum sentence of 15 years in federal prison without parole.”

 

USA v. Dickerson

 

Nicholas James Dickerson, 30, of Branson, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo. Dickerson is employed by the Western Taney County Fire Protection District as an EMT and volunteer firefighter. Dickerson was residing in living quarters at a Branson fire station at the time of the alleged offense.

 

The federal  indictment alleges that Dickerson used a minor to produce child pornography on Feb. 7, 2015. The indictment replaces a federal criminal complaint that was filed against Dickerson on Feb. 19, 2015.

 

According to an affidavit filed in support of the original criminal complaint, Dickerson sold his iPhone to a Nixa, Mo., business on Feb. 9, 2015. An employee of the business noticed Dickerson deleting images or files from the phone while standing at the counter, the affidavit says, and after the transaction was complete the employee noticed that the “deleted pictures folder” was still present on the screen. The employee saw an image that appeared to be child pornography and alerted the store owner, who contacted law enforcement.

 

Investigators identified the nine-year-old victim in the image. Dickerson told investigators that he took the photo while sexually abusing the child victim in his living quarters at the fire station, the affidavit says, and that he sexually abused the victim on multiple occasions. Dickerson also told investigators he had shown pornography to the child victim.

 

This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.

 

USA v. Britten

 

Ernest Britten, 36, of Joplin, Mo., and his ex-wife, Kendra Britten, 33, of Miami, Okla., formerly of Joplin, were charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.

 

The federal  indictment alleges that Ernest and Kendra Britten used a minor to produce child pornography from June 23, 2005, to July 2, 2012. The indictment also charges Ernest and Kendra Britten with receiving child pornography over the Internet from Dec. 27, 2010, to Nov. 10, 2011.

 

This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.

 

USA v. Peterson

 

Michael Douglas Peterson, 32, of Morristown, Tenn., formerly of Barry County, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Peterson on Jan. 23, 2015.

 

The federal  indictment alleges that Peterson used a minor victim to produce child pornography from March 1, 2014, to Jan. 21, 2015. Peterson is also charged with using his cell phone during that time to entice the minor, who was younger than 17, to engage in illicit sexual behavior.

 

According to an affidavit filed in support of the original criminal complaint, Peterson was exchanging nude photos via cell phone and engaging in sexual activity with the 15-year-old victim in Cassville, Mo. A state arrest warrant was issued for Peterson, but he could not be located.

 

The victim’s mother took her to live in Tennessee. Federal agents later located Peterson in Morristown, Tenn., where he was living with the child victim and her mother. Peterson was arrested and remains in federal custody.

 

Peterson told federal agents the child victim’s mother allowed him to move into their home and was aware that he and the child victim engaged in sexual intercourse. The child victim, the affidavit says, is pregnant with Peterson’s child. She was taken into protective custody and placed in foster care.

 

This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI.

 

USA v. Hall

 

Michael Roger Hall, 19, of Kenton, Ohio, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Hall on Friday, Feb. 20, 2015.

 

The federal indictment alleges that Hall used a minor to produce child pornography from Dec. 7 to 9, 2014. The indictment also alleges that Hall communicated via the Internet to entice a minor victim to engage in illicit sexual behavior.

 

According to an affidavit filed in support of the original criminal complaint, Hall was exchanging nude images over the Internet with a 9-year-old victim in Ava, Mo. Hall and the child victim, who began communicating through an application on her Kindle Fire, allegedly discussed meeting for sexual contact.

 

A law enforcement officer, portraying the identity of the child victim, began communicating with Hall. Hall was arrested on Friday, Feb. 20, 2015, and remains in federal custody.

 

This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Ava, Mo., Police Department, the Southwest Missouri Cyber Crime Task Force and the FBI.

 

Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for attempting to murder an informant in retaliation for providing information to law enforcement officers.

 

Justin M. Hill, 21, of St. Joseph, was sentenced by U.S. District Judge Howard F. Sachs to five years and 11 months in federal prison without parole.

 

On April 25, 2014, Hill pleaded guilty to the attempted murder of an informant. The informant had told federal agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that Hill was bringing powder cocaine from Kansas City, Mo., to St. Joseph. Missouri State Highway Patrol troopers attempted to stop Hill, who while fleeing from them tossed two ounces of cocaine out of his vehicle. Hill was stopped and arrested, but troopers could not find the tossed cocaine.

 

On multiple occasions following the stop, law enforcement officers saw Hill searching in that area. When asked what he was looking for, Hill told them he was looking for a lost ring. On Sept. 5, 2013, law enforcement officers found the cocaine in brush about seven or eight feet from the roadway.

 

After the traffic stop, Hill told the confidential source that he believed the source had informed law enforcement about the cocaine. On Aug. 30, 2013, Hill used a Chevy Suburban to ram the confidential informant’s vehicle. Hill got out of his vehicle and fired six shots at the confidential informant.

 

This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buchanan County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.

JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., woman was indicted by a federal grand jury today for embezzling $410,000 from the bank where she was employed.

 

Katherine Nicholle Brown, 28, of Jefferson City, was charged in an indictment returned by a federal grand jury in Jefferson City.

 

Brown was previously employed as the lead teller at Hawthorn Bank in Jefferson City. Today’s indictment alleges that Brown embezzled $410,000 from December 2012 to Sept. 19, 2014, by taking money from the bank vault for her personal use.

 

Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Wichita, Kan., attorney is among five defendants who have pleaded guilty in federal court this week to their roles in a multi-million dollar scheme to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.

 

Harry Najim, 67, of Wichita, pleaded guilty before U.S. District Judge Brian C. Wimes to failing to file a Form 8300 related to his representation of a client involved in the scheme, who was actually an undercover federal agent.

 

William F. Parry, 54, of Irving, N.Y., pleaded guilty today to contraband cigarette trafficking. Philip Christ, 55, of Hamburg, N.Y., pleaded guilty today to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking.

 

Nicole Sheffler, 37, of Independence, Mo., and Gholamreza “Reza” Tadaiyon, 51, of Weston, Fla., pleaded guilty on Wednesday, Feb. 18, to their roles in the conspiracy.

 

USA v. Najim

 

Najim was a lawyer employed by the Adams Jones Law Firm in Wichita. By pleading guilty today, Najim admitted that he provided legal services for an undercover ATF agent from March 2011 through January 2012. The undercover agent sold large quantities of untaxed cigarettes to a group of individuals who transported the contraband cigarettes to retail outlets in the state of New York. Those individuals were engaged in a conspiracy to commit wire fraud and contraband cigarette trafficking.

 

The undercover agent paid Najim $16,500 for his legal services when they met at the McCormick and Schmick’s restaurant on the Country Club Plaza in Kansas City, Mo., on June 23, 2011. Najim knew federal statutes required the law firm to file a report with the Financial Crimes Enforcement Network upon receipt of more than $10,000 in a single transaction. Najim, however, did not report the $16,500 payment to the law firm, which caused it to fail to file a report.

 

Najim was also the attorney for co-defendant Craig Sheffler, 45, of Independence, and Sheffler’s business, Cheap Tobacco Wholesale. Sheffler pleaded guilty on Dec. 19, 2014, to participating in the conspiracy to commit wire fraud and contraband cigarette trafficking and forfeited $599,206 to the government.

 

Sheffler admitted that he made regular purchases of contraband cigarettes from undercover ATF agents. The contraband cigarettes were transported to New York without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. The unstamped, untaxed cigarettes were then sold to smoke shops on the reservations in New York, which sold the contraband cigarettes at a considerable discount and deprived the state of its tax revenue.

 

According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Sheffler admitted in his plea agreement that the amount of loss exceeded $7 million. Cigarettes were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.

 

USA v. Sheffler

 

Nicole Sheffler, the wife of Craig Sheffler, admitted that she collected and transported the money used to purchase the contraband cigarettes from the ATF undercover operation. Nicole Sheffler collected the money from customers of Cheap Tobacco Wholesale and cashed checks at a check cashing business. She delivered the money to the ATF undercover warehouse in Kansas City, Mo., for the cigarette purchases by Cheap Tobacco Wholesale.

 

USA v. Parry

 

Parry owns and operates Wolf’s Run, a business that, among other things, operates a gas station, convenience store, and trucking transport business. Parry purchased contraband Marlboro and Newport cigarettes in September and December 2011. Parry admitted that he purchased unstamped cigarettes with the intent that the New York state excise tax would not be pre-collected, thus allowing the cigarettes to be sold at a considerable discount and depriving New York State of its tax revenue. Parry sold those unstamped, untaxed cigarettes at Wolf’s Run and to other smoke shops on the reservations in New York.

 

Under the terms of today’s plea agreement, Parry must forfeit $459,876, representing the profits he received for his role in the conspiracy, to the government.

 

USA v. Christ

 

Christ was the chief executive officer of P.D.C. Consulting, LLC, located in Irving, N.Y. Christ admitted that he brokered sales of contraband cigarettes to Native American businesses located in the state of New York. The tax due and owing to New York State on these cigarette transactions was approximately $2.4 million.

 

USA v. Tadaiyon

 

Tadaiyon owns Brand Name Connoisseurs, Corp., a business located in Florida.  Neither Tadaiyon nor Brand Name Connoisseurs was a licensed New York tobacco wholesaler authorized to bring cigarettes into the state of New York.

 

Tadaiyon admitted that he and Sheffler made regular purchases of contraband cigarettes from undercover ATF agents in Kansas City, Mo. They coordinated the cigarette orders from the vendors in New York and assisted in transporting the contraband cigarettes. Tadaiyon received approximately $1,280,000 in gross profit on these transactions.

 

Under federal statutes, these co-defendants are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Texas man has been charged in federal court for his role in a fraud scheme in which a Dallas area hospital paid more than $1 million to purchase an MRI from conspirators who impersonated representatives of Kansas City-based Cerner Corporation.

 

Albert Davis, 54, of Richardson, Texas, was charged with conspiracy to commit wire fraud in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Feb. 12, 2015. The complaint and affidavit were unsealed and made public today upon Davis’s arrest and initial court appearance in the U.S. District Court in Tyler, Texas, where he remains in federal custody.

 

The federal criminal complaint alleges that Davis participated in a wire fraud conspiracy with at least six unnamed co-conspirators that began May 1, 2009. Davis allegedly convinced employees of Dallas Medical Center and Prime Health Care (which acquired the hospital during the course of the fraud scheme) that he and his co-conspirators were working with Cerner. As a result, Dallas Medical Center transmitted two wire payments to the conspirators’ bank account totaling $1,061,550.

 

Dickinson praised Cerner’s swift action in reporting the fraud. “As soon as Cerner employees became aware of this incident, they immediately notified representatives at the hospital and contacted law enforcement to provide information central to the investigation and prosecution of this case,” Dickinson said.

 

The charge is part of a multi-district investigation based in the Western District of Missouri, which also includes the Northern and Eastern Districts of Texas and the Western District of Arkansas.

 

According to an affidavit filed in support of the criminal complaint, Davis and his co-conspirators impersonated Cerner employees, physicians, investors and others – both in e-mails and in-person visits. The affidavit alleges that Davis and his co-conspirators created a fake Cerner business entity, opened a fake Cerner bank account, registered a fake Cerner Internet domain, created fake Cerner employee e-mail accounts, leased virtual office space for a fake Cerner address in Kansas City and paid for cellphones with local 816 area code phone numbers. They allegedly created fake Cerner product quotes and fake Cerner invoices.

 

Davis and his co-conspirators allegedly worked together as a part of several businesses and entities created by Davis and a co-conspirator. Co-conspirators are linked to at least 70 individual business entities registered in Texas, Colorado, Nevada, Wyoming, Washington, Delaware and Florida in which some combination of them are involved. These entities often utilize similar names and addresses, but usually maintain separate business registration and bank accounts.

 

Raji Kumar, CEO of Dallas Medical Center, told federal agents that she was approached by Davis and a co-conspirator in February 2012. According to the affidavit, they claimed they were partnering with Cerner to sell MRIs. She was told their company, iHeart, had cardiac MRI technology that was a breakthrough in medical science and would change the way patients were diagnosed with cardiac issues. After the initial meeting, the affidavit says, Kumar also met with other co-conspirators.

 

According to the affidavit, Cerner generated a real quote to sell an MRI, in partnership with Davis, to Dallas Medical Center. However, Cerner made the decision to not pursue the MRI deal with Davis, which was communicated to Davis in October 2012. According to Kumar, Dallas Medical Center was never told by Davis that Cerner was out of the deal.

 

Instead, the affidavit says, Dallas Medical Center began receiving e-mails purportedly from Cerner employees. The e-mails had the “@cernerinc” domain (which is not used by Cerner) and provided information and confirmation about the MRI sale.

 

On Oct. 17, 2012, Davis hosted representatives of Dallas Medical Center and Prime Health Care Services at Plano, Texas, for a site visit to look at their MRI. Davis allegedly introduced Kumar and others to an individual identified as “Senior Physicist Suresh Mitta of Cerner” (actually one of the unnamed co-conspirators) who helped demonstrate the equipment. This individual presented a “Cerner” business card to Kumar.

 

After the visit, Prime Health Care Services made the decision to purchase a new MRI system, as opposed to upgrading the current system.

 

On Nov. 5, 2012, Prime Health Care Services agreed to buy the MRI for $1,330,130. Conspirators allegedly provided instructions to wire the funds to a fake Cerner bank account. Conspirators allegedly sent a fraudulent invoice that divided the payment into three separate wire transfers of $508,250, $553,300 and $268,550. The first two payments were made in November and December 2012; the third payment was never made because the fraud was detected.

 

Kumar asked Davis for references, the affidavit says, and he provided three names. Kumar said she attempted to call the three references provided by Davis; two physicians from Oklahoma told her they were happy with the MRI from Cerner and had no issues. (When interviewed later by federal agents, both doctors said they had not talked with Kumar or anyone from Dallas Medical Center about an MRI.)

 

Kumar said the installation was never completed, and despite numerous calls, nothing was done. The hospital made the decision to try and involve Cerner directly to help finish the installation and get the MRI working.

 

A hospital employee called the real Cerner Corporation and left a message for the employee with whom they thought they had been dealing. That employee called him back, however, and stated that the hospital was confused, and that Cerner had not sold them an MRI. According to Kumar, on June 26, 2013, she exchanged calls and e-mails with employees from the real Cerner Corporation who had reviewed the e-mails Dallas Medical Center had received, along with the purported Cerner invoices. Cerner employees quickly identified that these were not authentic Cerner invoices and informed her that the e-mails were not sent from the real Cerner domain.

 

The affidavit also refers to another instance involving Dallas Medical Center in which Davis allegedly impersonated another company to sell a Cath Lab to the hospital, using the same techniques of registering a fake domain, fake e-mails, and a fake business entity. Prior to the MRI negotiations, the hospital made four payments totaling $491,000 to CIS Cardiovascular. These payments actually were made to a bank account over which Davis was the sole person with signature authority.

 

Criminal Complaint: Eastern District of Texas

 

In a separate case, Davis was charged with perjury in a federal criminal complaint filed in the Eastern District of Texas, related to his testimony in a civil trial in that district.

 

Davis, through his company LBDS Holding Company, LLC, sued a company called ISOL Technology, Inc., and two other firms for breach of contract, trade secrets misappropriation, civil conspiracy, unfair competition, and theft of trade secrets. According to court records, this case went to trial in the spring of 2014 and the jury awarded LBDS a verdict of approximately $25 million.

 

ISOL subsequently filed an emergency motion for sanctions against Davis’s company. In its motion, ISOL argued that LBDS manufactured and falsified evidence in the trial and committed a fraud upon the court. They asked the court to set aside the verdict.

 

During the trial, Davis and one of the unnamed co-conspirators both testified at trial about e-mails from the domain cernerinc.com. According to the affidavit, e-mails using the cernerinc.com domain were introduced as exhibits, along with a fake “Cerner Distribution Agreement” that purportedly committed Cerner to purchase 345 MRI systems from Davis.

 

Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Northport, Ala., man was sentenced in federal court today for his role in a $10.2 million securities fraud and wire fraud conspiracy that victimized thousands of investors across the United States and Canada who bought shares in Petro America Corporation, which was purported to be a profitable company with $284 billion in assets.

 

More than 12,000 victims invested in excess of $10.2 million in Petro America. Contrary to the fraudulent representations the conspirators made to victim-investors, Petro America had no oil, no realistic prospects for obtaining, transporting or storing large amounts of oil, no significant assets, no revenue and no employees other than the CEO.

 

Russell Hopkins, 51, of Northport, was sentenced by U.S. District Judge Brian C. Wimes to four years and three months in federal prison without parole. The court also ordered Hopkins to pay $673,465 in restitution.

 

Hopkins is among nine co-defendants who pleaded guilty to their roles in the scheme. Five additional co-defendants were convicted at trial, including CEO Isreal Owen Hawkins, 59, of Kansas City, Kan. Hawkins was sentenced on Oct. 8, 2013, to 30 years in federal prison without parole.

 

Hopkins, who pleaded guilty on July 13, 2011, admitted that he participated in a conspiracy to commit securities fraud and wire fraud that began Sept. 1, 2008. Hopkins promoted Petro America and sold shares to investors, although he was never licensed to sell securities and despite cease and desist orders from both Missouri and Kansas.

 

Hopkins and other conspirators used religious language in their pitches and often recruited through churches. The sale of Petro America stock was accomplished by making innumerable false misrepresentations and omissions to investors. For example, conspirators falsely claimed that Petro America was worth $284 billion and Petro America stock was worth $24 per share in order to induce people to invest. There was no basis for those numbers.

 

In an attempt to enable Petro to continue selling its stock after the Missouri cease and desist order was issued on Nov. 12, 2008, and to enable the conspirators to continue to profit, Hawkins gifted billions of shares to Hopkins and other co-defendants. These secondary sellers agreed to sell the stock and they often returned some of the proceeds as kick-back payments to Hawkins and others. Hopkins and other secondary sellers often represented that they were merely investors selling their own shares; they did not disclose that cease and desist orders had been issued, nor did they disclose that most or all of the shares had been gifted to them. Almost no investor proceeds were being reinvested by Petro; instead, conspirators were spending investor proceeds on personal expenditures.

 

From June 2009 through February 2011, Hopkins made at least $673,465 from the sale of Petro stock to at least 61 investors throughout the United States.

 

While much of the time Hopkins simply repeated information to investors that he had heard from others, he knew that it was incomplete and potentially misleading. In his dealings with investors, Hopkins intentionally and willfully did not provide certain material information to investors, including: 1) the existence of cease and desist orders in Missouri and Kansas; 2) specific negative information contained in the cease and desist orders; 3) the fact that the stock was unregistered; 4) the fact that the stock was either gifted to him, or sold to him at a price grossly discounted from the offer price; and 5) the fact that he was selling the investors his personal shares. When he sold the stock, Hopkins adopted numerous positive claims concerning Petro’s future potential to become a publicly traded company, and of its claimed assets, which he knew were overly optimistic and misleading.

 

Starting around July 2010, Hopkins agreed to pay for some of Petro’s “expenses.”  In sum, Hopkins paid $32,000 out of his proceeds from the sale of his shares for expenses including Petro’s Pink Sheets registration, payments for accounting and IT work, and $500 weekly payments for Petro conference calls. Hopkins was told that Alvin Sykes was a consultant for Petro who needed to go to Washington D.C., so Hopkins paid for Sykes’s airfare and hotel.

 

This case is being prosecuted by Assistant U.S. Attorneys Daniel M. Nelson and Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, the U.S. Postal Inspection Service and the Office of the Missouri Securities Commissioner.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man who was caught sexually assaulting a toddler on a nannycam pleaded guilty in federal court today to producing child pornography.

 

Jeffrey Laurence Treta, 47, of Blue Springs, pleaded guilty before U.S. District Judge Beth Phillips to two counts of producing child pornography, two counts of producing child obscenity, one count of possessing child pornography and one count of obstructing justice.

 

Treta was living with his estranged wife and babysitting a 21-month-old child identified as Jane Doe #1 while his wife was away from the house on Jan. 29, 2013. Treta’s wife had installed a nannycam in the master bedroom, which was triggered whenever anyone entered the room. The nannycam recorded Treta bringing Jane Doe #1 into the bedroom, laying the toddler down on the bed, and using his cell phone to record himself sexually assaulting the child victim while he lay in bed with her.

 

Treta’s wife and son gave law enforcement investigators a SIM card they had innocently retrieved from Treta’s cell phone on a prior occasion. The SIM card contained a video and images of similar child pornography dated 10 days prior to Treta’s recorded assault of Jane Doe #1. Some of the images of this assault were transferred from Treta’s cell phone to his laptop computer.

 

Treta’s laptop also contained images of two more victims, about 10 years old, identified as Jane Doe #2 and Jane Doe #3. Those images were Photoshopped to make it appear as though the children were engaged in sexually explicit conduct.

 

Treta’s laptop contained hundreds of images from child modeling, nudist and other Web sites, many of which constituted child pornography. Many of the images were of prepubescent children (including toddlers) and a few depict sadistic activity. Other images on Treta’s laptop resembled the Photoshopped images of Jane Doe #2 and Jane Doe #3.

 

Treta destroyed evidence in anticipation of a police investigation of sexual abuse and child pornography. During the few minutes after police officers had been called, but before they arrived at his residence, Treta deleted a large number of items from his laptop, including images and videos.

 

Under federal statutes, Treta is subject to a mandatory sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Blue Springs, Mo., Police Department.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a now-defunct Savannah, Mo., business pleaded guilty in federal court today to a scheme to defraud U.S. Bank in St. Joseph, Mo., of more than $2 million.

 

Wilbur L. Duncan, 71, of Savannah, waived his right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges him with four counts of loan application fraud.

 

Duncan was the owner of Duncan Agri Service, which is no longer in business. By pleading guilty today, Duncan admitted that he made materially false statements on inventory reports that were used by U.S. Bank to secure a line of credit for his business. Duncan admitted that he overvalued property or security and falsely represented the value of business inventory on those reports.

 

Duncan made dozens of false statements regarding the inventory over the life of the loans. The inventory was substantially less that Duncan reported and U.S. Bank would not have continued to extend a line of credit, or would have substantially reduced the line of credit to Duncan Agri Service, had the bank known of the actual level of inventory.

 

As a result of this scheme, Duncan defrauded U.S. Bank in the amount of $2,160,085 and created a loss of $1,459,455 for the bank after liquidation of Duncan Argi Service assets.

 

Under the terms of today’s plea agreement, Duncan must forfeit to the government residential property in Gravois Mills, Mo., a 2008 Chevrolet pickup truck, a 2008 Chevrolet Trailblazer, a 2000 Xpres 16-foot aluminum bass boat, a 1996 Chris 27-foot fiberglass boat and a 2000 Mercury motor.

 

Under federal statutes, Duncan is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by the FBI.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to attempting to produce child pornography by secretly recording videos of unsuspecting victims in restrooms and changing rooms in various businesses at Independence Center and elsewhere.

 

Nicholas A. Braile, 25, of Independence, pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to two counts of attempting to produce child pornography.

 

Braile was arrested at a Walmart store in Independence on May 15, 2014, when a Walmart security guard caught him taking an “up skirt” photo of a female customer with his cell phone. Law enforcement officers arrested Braile and obtained search warrants for his cell phone and residence, where they seized a desktop computer and a laptop computer.

 

Investigators located video files on the desktop computer of women and girls changing in store dressing rooms, videos taken in the restroom at Braile’s work place (Harbor Freight Tools in Independence) and “up skirt” video files from several businesses at Independence Center. All of the businesses involved in the investigation cooperated fully with law enforcement officers.

 

The store manager at Harbor Freight Tools identified photographs of two teenage victims as store employees. The photographs were taken from videos that depicted the teens using the restroom and changing clothes at Harbor Freight Tools. Braile also filmed customers who used the restroom, including adults and small children. Detectives observed the restroom where the videos had been produced. There was a small section of the ceiling where the ceiling tile was missing. This restroom was next to a janitor closet. Located in the ceiling of the janitor closet was a paint roller, without the brush, that was positioned over the hole in the ceiling tile in the restroom. Detectives surmised that the paint roller was used to hold Braile’s cell phone over the hole in the ceiling tile so that he could film the teens in the restroom without their knowledge.

 

Detectives determined that a victim in one of the “up-skirt” videos located on Braile’s computer worked at a store in Independence Center. The store manager identified the 16-year-old victim. The video depicts Braile asking the victim for assistance and then, because of his close proximity to her, Braile is able to maneuver his phone into a position to film up the victim’s skirt.

 

Braile’s cell phone contained several “up skirt” and dressing room videos from dates shortly prior to his arrest. In several videos, Braile followed females around stores until he was able to get his phone under their skirt. In one video he looked under a dressing room stall and moved to another dressing room to get closer to a female victim. In another instance a prepubescent girl was standing next to her father when Braile took a video up her skirt.

 

The forensic examination of Braile’s computers and phone also located approximately 468 photographs he had taken of prepubescent female children. These images were taken at Braile’s work place and at Independence Center. The images depict children shopping with their parents. There is no nudity in the images but they focus on the buttocks and crotch area of the children.

 

The forensic examiner also located child pornography that had been downloaded from the Internet. The collection, most of which was located on a laptop computer, included 138 video files of child pornography. There were also so-called “modeling images” of young girls approximately 9 to 14 years of age.

 

Under the terms of today’s plea agreement, Braile will be sentenced to 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.

 

This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Jefferson City, Mo., men have been charged in federal court following a police chase that resulted in the seizure of a large quantity of methamphetamine.

 

David E. Rodebaugh, 40, Michael Pearson, 31, and Hernan Hurtado, 23, all of Jefferson City, were charged in separate, but related, criminal complaints filed in the U.S. District Court in Jefferson City, Mo., on Saturday, Feb. 14, 2015. All three defendants had their initial court appearances today and remain in federal custody pending detention hearings.

 

Rodebaugh and Pearson were each charged with one count of possessing methamphetamine with the intent to distribute and one count of participating in a conspiracy to possess methamphetamine with the intent to distribute. Hurtado was charged with one count of distributing methamphetamine.

 

According to affidavits filed in support of the federal criminal complaints, law enforcement officers were conducting surveillance of Rodebaugh on Friday, Feb. 13, 2015 as part of an ongoing drug-trafficking investigation. Rodebaugh and Pearson met with Hurtado in the parking lot at the Capital Mall in Jefferson City, the affidavit says, where Pearson took a plastic bag from the back cab area of Hurtado’s pickup and placed it in the back seat of the Acura he and Rodebaugh had driven to the mall.

 

Pearson drove the Acura, with Rodebaugh in the front passenger seat, as they left the mall. Police attempted to stop Pearson, the affidavit says, but he refused to stop and led officers in pursuit. The Acura was eventually rendered inoperable and Pearson fled on foot. Rodebaugh remained inside the Acura and was detained. Pearson was later located and arrested.

 

According to the affidavit, law enforcement officers found the plastic bag, which Rodebaugh later admitted he had thrown out the vehicle’s window during the pursuit, about 75 yards from where the Acura was stopped. Inside the plastic bag were two large bundles that contained approximately five pounds of methamphetamine.

 

Later that same afternoon, Hurtado called the Jefferson City, Mo., Police Department to report he had been robbed of $6,000 while at his home in Jefferson City. Hurtado voluntarily came to the police station, where he was questioned and arrested.

 

Dickinson cautioned that the charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration and MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group).

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man who was part of a nationwide e-mail network was sentenced in federal court today for receiving and distributing child pornography.

 

Joseph Allen High, 44, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 17 years in federal prison without parole.

 

On Sept. 17, 2014, High pleaded guilty to receiving and distributing child pornography over the Internet.

 

High’s e-mail address was discovered by federal agents in Illinois during an investigation into a national e-mail network that exchanged child pornography among its members. More than 1,000 individuals utilized their e-mail accounts to trade images of child pornography with one another. Agents determined that High had received 17 videos and 72 images of child pornography between Dec. 17, 2012, and Feb. 16, 2013. The videos included children as young as three or four years old, and children being sexually assaulted by adults.

 

According to court documents, High sexually abused an 8-year-old girl on multiple occasions. Agents discovered Internet images of the child victim, clothed and asleep, by typing High’s e-mail address into the Google search engine.

 

This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Springfield, Mo., Police Department.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Springfield, Mo., business was sentenced in federal court today for filing false tax returns on more than $1.9 million of income over a five-year period.

 

Stephen J. Schroff, 53, of Springfield, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole. The court also ordered Schroff to pay $600,023 in restitution to the Internal Revenue Service.

 

Schroff was the owner and operator of Stephen Schroff, Inc., doing business as ABC Roofing in Springfield.

 

On Sept. 25, 2014, Schroff pleaded guilty to filing a materially false tax return. Schroff admitted that he filed false federal income tax returns for the years 2005 through 2009 by failing to report $1,925,622 of income.

 

According to court documents, during the commission of this offense, Schroff moved from a 3,000-square-foot home into a 4,000-square-foot home. Schroff also owned a Cadillac Escalade, a Chevy Corvette, a lake house, and a boat. Schroff invested money in a partnership that acquired rental property and began the development of a residential subdivision.

 

Schroff admitted that he concealed income from his business. In 2007 Schroff began diverting business receipts from ABC Roofing by cashing roofing customers’ checks instead of depositing them in the business bank account, and by depositing roofing customers’ checks into secret accounts at other banks. Schroff did not claim any of the embezzled business receipts as income when he filed federal tax returns in 2007, 2008 and 2009. In total, Schroff failed to report $1,223,572 of income from the embezzlement scheme.

 

Schroff’s actions resulted in a total tax loss to the federal government of $600,023.

 

This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by IRS-Criminal Investigation and the IRS-Special Enforcement Program.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man who was still on supervised release for a 2009 bank robbery conviction pleaded guilty in federal court today to robbing two more banks.

 

Antonio P. Gaitan, 36, of Kansas City, Kan., pleaded guilty before U.S. Chief District Judge Greg Kays to one count of bank robbery in an indictment returned in the Western District of Missouri and to a second count of bank robbery in an indictment returned in the District of Kansas.

 

By pleading guilty today, Gaitan admitted that he stole $4,114 from Country Club Bank, 1 Ward Parkway, Kansas City, Mo., on April 2, 2014. Gaitan also admitted that he stole $5,130 from Truity Credit Union in Lawrence, Kan., on April 5, 2014.

 

Gaitan was identified from surveillance photos from the Country Club Bank robbery. Investigators learned that Gaitan was traveling to Nebraska, and he was arrested by authorities in that state.

 

Gaitan recently had escaped from custody at Heartland Center for Behavioral Change after being sentenced to five years in prison and three years of supervised release for a 2009 bank robbery. His supervised release was revoked by the court.

 

Under the terms of today’s plea agreement, Gaitan will be sentenced to 10 years in federal prison without parole for the bank robberies, plus a consecutive revocation sentence of 24 to 31 months for violating his supervised release. Gaitan must pay $9,244 in restitution.

 

This case is being prosecuted by Special Assistant U.S. Attorney Leena Ramana. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Lawrence, Kan., Police Department and the Omaha, Neb., Police Department.

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man who is a convicted sex offender was sentenced in federal court today for receiving and distributing child pornography over the Internet.

 

Donnie Ray Sumner, 44, of Joplin, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Sumner has a prior state felony conviction for possessing child pornography.

 

On April 23, 2014, Sumner pleaded guilty to receiving and distributing child pornography. Law enforcement officers executed a search warrant at Sumner’s residence on Jan. 21, 2013, and seized a desktop computer and a laptop computer that contained images of child pornography.

 

This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.

 

Project Safe Childhood

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Houston, Mo., woman has been charged in federal court with attempting to hire someone to murder her sister.

 

Leta Faye Douglas, of Houston, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Friday, Feb. 13, 2015. Douglas remains in federal custody pending her detention hearing on Thursday, Feb. 19, 2015.

 

Douglas allegedly asked her ex-husband to help her hire someone to kill her sister for $2,000.

 

According to an affidavit filed in support of the federal criminal complaint, Douglas sent a letter asking for help to her ex-husband in Nebraska. They have been divorced for 18 years, the affidavit says, and have not maintained contact.

 

Douglas’s ex-husband called her, the affidavit says, and during their telephone conversation, she told him she needed him to help her “take care of” her sister. According to the affidavit, Douglas’s parents were in a home for the elderly and her sister was in charge of their finances. Douglas claimed her sister would not handle their parents’ finances correctly, the affidavit says, but her ex-husband believed that Douglas wanted to have access to her parent's financial estate. Douglas told her ex-husband that she wanted her sister killed.

 

Douglas’s ex-husband initially told her that he did not want to help her. He believed she was serious, the affidavit says, so he reported the incident to the Nebraska State Patrol. Investigators then recorded a telephone call made to Douglas by her ex-husband on Jan. 27, 2015. During the telephone conversation, the affidavit says, he told her that he knew someone who would murder her sister. They allegedly agreed that Douglas would pay $2,000 after she received her tax return to have her sister killed.

 

On Feb. 2, 2015, Douglas allegedly called her ex-husband and told him she really wanted this done. Douglas allegedly told him that, if he took care of this, she would let him see his daughter (whom he has not had contact with in many years). He told Douglas to send him a picture of her sister and a map to her house, the affidavit says, which she did.

 

On Feb. 6, 2015, an undercover employee of the Missouri State Highway Patrol called Douglas and they arranged to meet at the Walmart in Houston.  Douglas allegedly met with the undercover employee on Feb. 9, 2015, and they had a conversation while sitting in her vehicle. According to the affidavit, she gave the undercover employee a photograph of her sister and a hand-drawn map to her sister’s residence. She allegedly told him how to find her sister’s house and gave him a brief description of the interior layout of the house. Douglas told him that her sister’s husband would also be home and that they had two dogs inside the house, according to the affidavit. Douglas allegedly handed him an envelope that contained $2,000.

 

Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

 

This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Missouri State Highway Patrol and the Nebraska State Patrol.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing firearms, following a high-speed car chase that ended with a collision that killed an employee of the Kansas City Police Crime Laboratory.

 

Larneal D. Davis, 29, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.

 

On Aug. 12, 2014, Davis pleaded guilty to being a felon in possession of firearms. Davis admitted that he possessed two firearms in the vehicle he was driving on July 6, 2013. The two firearms – a Taurus .40-caliber semi-automatic pistol and a Ruger, .380-caliber semi-automatic pistol – were discovered in Davis’s wrecked vehicle following its collision with another vehicle at 65th Street and Troost in Kansas City.

 

Michael Chou, a crime scene technician at the Kansas City Police Crime Laboratory, was killed when his vehicle was broadsided by Davis’s vehicle while Davis was fleeing from Kansas City police officers. Davis was arrested a short distance from the accident scene after a brief pursuit on foot.

 

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Davis has prior felony convictions for possession of crack cocaine with intent to distribute, carrying a firearm in connection with a drug offense and distribution of a controlled substance.

 

This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.