Month: September 2014

16 Keebler employees charged with filing false unemployment reports

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

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

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

Angie Raffurty, 43, Blue Springs, Mo., who is alleged to have fraudulently received $10,488 in benefits.
Bobby Grant, 49, Kansas City, Kan., who is alleged to have fraudulently received $31,466.
Darrell Haywood, 32, Kansas City, Kan., who is alleged to have fraudulently received $10,564.
Debbie Gleghorn, 55, Kansas City, Kan., who is alleged to have fraudulently received $10,633,
Durail Bailey, 36, Kansas City, Kan., who is alleged to have fraudulently received $12,693.
Herman Callands Jr., 46, Kansas City, Kan., who is alleged to have fraudulently received $13,766.
James Mango, 50, Kansas City, Mo., who is alleged to have fraudulently received $17,893
Julian Emery, 38, Blue Springs, Mo., who is alleged to have fraudulently received $15,788.
Maxine Nelson, 44, Kansas City., Mo., who is alleged to have fraudulently received $12,795.
Randy Laughlin, 55, Blue Springs, Mo., who is alleged to have fraudulently received $27,388.
Rodney Taylor, 44, Kansas City, Mo., who is alleged to have fraudulently received $15,598.
Rodrigo Diacono, 35, Lenexa, Kan., who is alleged to have fraudulently received $10,168.
Tina Cooper, 48, Kansas City, Mo., who is alleged to have fraudulently received $18,796.
Donald Barnett, 42, Independence, Mo., who is alleged to have fraudulently received $11,490.
Edith Clark, 53, Kansas City, Mo., who is alleged to have fraudulently received $12,820.
Kaven Daniels, 43, Kansas City, Mo., who is alleged to have fraudulently received $12,633.
If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the theft of government funds, and a maximum penalty of 30 years and a fine up to $1 million on the bank fraud charge.
The Kansas Department of Labor, the U.S. Department of Labor Employee and Benefits Security Administration, the U.S. Department of Labor – Office of Inspector General and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.

Other indictments also were announced by the U.S. attorney.

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

K. Kevin James is charged with 10 counts of bank fraud, eight counts of wire fraud and one count of conspiracy to defraud the United States.

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

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

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

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

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

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

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

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

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

Damon Harlin Jr., 35, Kansas City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 20, 2014, in Kansas City, Kan.

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

Timothy R. Whittington Jr., 34, Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 16, 2014, in Kansas City, Kan.

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

Fairfax group plans train trip

The Fairfax Industrial Association plans a ride on the Union Pacific railroad for its September luncheon meeting.

The group will leave at 11 a.m. Wednesday, Sept. 17, to travel from 201 S. 5th St. (I-70 and Pacific Avenue) to the Wolcott area of Kansas City, Kan.

Boxed lunches will be served on the train. The group will return about 1:30 p.m.

Union Pacific Railroad is the sponsor of this meeting and is expected to provide a guest speaker.

Everyone on the train is expected to wear closed-toed, low-heeled shoes. Space is limited and priority is given to those Fairfax Industrial Association members who make their reservations first.

The cost of the luncheon is $15 for FIA members and $25 for nonmembers.

Reservations may be made to Melissa Clark at [email protected].

Sporting KC falls 3-1 at New England

Sporting Kansas City fell 3-1 against the New England Revolution at Gillette Stadium on Wednesday night in Foxborough, Mass.

Soony Saad opened the scoring in the ninth minute, however the Revolution responded with an equalizer from Teal Bunbury on the stroke of halftime and two second-half goals from Lee Nguyen.

Sporting Kansas City remains in second place in the Eastern Conference, six points clear of the third place Revolution, despite suffering the team’s third straight defeat and second of the season against New England. The team’s last three-game losing streak came in May 2012 after opening that campaign with seven straight victories.

Saad struck first for Sporting KC, opening the scoring in the game’s ninth minute off a throw-in from captain Matt Besler. The throw skipped off the head of Jermaine Jones and was met at the back post by Saad with a header from inside the six-yard box.

The goal — Saad’s third of the season in MLS play and fifth in all competition in 2014 — was the fourth scored by Sporting KC directly off a throw-in during the regular season. After appearing in only three of the team’s first 12 MLS matches this year, Saad has logged minutes in each of the past 15 league games and now has eight goals in his MLS career.

Sinovic, who began his MLS career with New England and scored the series-tying goal against the Revolution in the 2013 Eastern Conference Semifinals, came close to doubling the visitors advantage in the 16th minute. The left back beat two Revolution defenders and sent his right-footed shot on target, forcing a save from Bobby Shuttleworth.

In his first game back since suffering a shoulder injury on Aug. 10, Sporting KC goalkeeper Andy Gruenebaum made four saves on Wednesday. The Overland Park, Kan., native dove low to his right to smother Nguyen’s attempt from the edge of the penalty area in the 35th minute.

Gruenebaum was helpless to keep out Bunbury’s equalizer in the 45th minute following a fortuitous deflection off Besler. Acquired from Sporting KC prior to the start of the 2014 season, Bunbury has four goals this year with two coming against his former club.

Jones, making his first MLS start and his home debut, earned the assist on Bunbury’s game-tying goal. The U.S. Men’s National Team midfielder was replaced at halftime after having played a part in both of the first half goals.

New England’s momentum carried through the halftime intermission as Nguyen scored the game-winning goal two minutes into the second half. Nguyen started the scoring sequence by dispossessing Jorge Claros in midfield and did well to finish moments later with a curling shot from just outside the 18-yard box.

Kelyn Rowe earned his team-leading fifth assist of the season on the goal and now has 18 in his three-year professional career. The goal marked Nguyen’s third straight match on the scoresheet and gave Rowe assists in each of New England’s last three games.

Nguyen eventually capped the performance with his second of the night coming four minutes into second half stoppage time. The two-way midfielder once again created his own opportunity by blocking a clearance attempt from Lawrence Olum and checking wide before burying a first-time half-volley inside the far post.

Rookie Patrick Mullins earned his first career assist on the play and Nguyen now has 12 goals on the season, most on the team. The brace was the third of his MLS career and gives him 21 goals in three seasons with the Revolution.

Nguyen led all players with six shots in Wednesday’s match and nearly netted in the 55th minute if not for a strong stop from Gruenebaum on a drive from distance. The Sporting KC goalkeeper was also called into action at the 86-minute mark on a long-range attempt from Mullins that was pushed away with a sprawling save.

Sporting Kansas City’s best scoring opportunity of the second half came in the 58th minute via a set piece from 35 yards out. Graham Zusi rolled the ball to his right for a powerful shot from Saad that worked its way through the wall and skimmed inches wide of the post.

Wednesday’s loss was Sporting Kansas City’s first when scoring the game’s opening goal in 2014, snapping a 16-game unbeaten streak this season when taking a 1-0 lead, and came without four of the team’s five most regularly used players. Dom Dwyer, who leads the team with 17 goals this year, and Benny Feilhaber, who leads the team with six assists, each missed the match due to caution accumulation while Jacob Peterson (injury) and Aurelien Collin (unused sub) were also sidelined.

Sporting Kansas City will remain on the road for a date with the New York Red Bulls at 6:30 p.m. on Saturday at Red Bull Arena. The match will be nationally televised on NBCSN and the team’s official watch parties will be held at the Johnny’s Tavern locations in the KC Power and Light District and in Overland Park.

– Story from Sporting KC