Aurora Man Pleads Guilty to Meth Conspiracy, Illegal Firearm

 News Release:

Officers Seized 29 Pounds of Meth During Arrest

SPRINGFIELD, Mo. – An Aurora, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute large amounts of methamphetamine in Barry County, Mo.

Brian E. Hall, 45, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of conspiracy to distribute methamphetamine, one count of conspiracy to commit money laundering, and one count of possessing a firearm in furtherance of a drug-trafficking crime.

By pleading guilty today, Hall admitted he participated in the drug-trafficking conspiracy from Nov. 1, 2020, to April 28, 2022.

During the investigation, law enforcement officers seized multiple kilograms of methamphetamine from various members of the drug-trafficking organization, including Hall. Hall admitted that he was distributing large amounts of methamphetamine in the southwest Missouri region. Hall also admitted he has traveled to Arizona and Oklahoma numerous times to purchase 20 to 50 pounds of methamphetamine at a time and bring it back to Missouri.

A confidential informant assisted in the controlled buy of 413 grams (approximately one pound) of methamphetamine from Hall on June 16, 2021, for $1,400. A confidential informant assisted in the controlled buy of 431.27 grams of methamphetamine from Hall on June 22, 2021, for $3,500.

Investigators also interviewed a property owner who was involved in an owner-financed sale of a house and storage units to Hall for $10,000 per month, paid in cash. The property owner was aware that Hall sold methamphetamine and did not have legitimate income to purchase the properties. Hall met the property owner in February and in March 2022 to make the $10,000 payments, which were relinquished to the government.

On April 28, 2022, law enforcement officers executed a search warrant at Hall’s residence. Officers seized seven pounds of methamphetamine, a stolen Taurus 9mm semi-automatic pistol that was found underneath Hall’s bed, approximately $57,000 in cash found inside a safe, and drug paraphernalia used for the packaging and sale of methamphetamine. Under the terms of today’s plea agreement, Hall must forfeit the $57,000 to the government.

Hall told investigators he was expecting a large delivery of methamphetamine that evening, and that he planned to give the courier the $57,000. At approximately 10 p.m., a black Toyota Camry arrived at Hall’s residence. The driver and a passenger were immediately arrested, and officers seized approximately 22 pounds (10 kilograms) of methamphetamine.

Under federal statutes, Hall is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. 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 Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Bureau of Indian Affairs, the Combined Ozark Multi-jurisdictional Enforcement Team (COMET), the Oklahoma Highway Patrol, the Barry County, Mo., Sheriff’s Department, the Ozarks Drug Enforcement Team, and the Stone County, Mo., Sheriff’s Department, the Greene County, Mo., Sheriff’s Department, the Bolivar, Mo., Police Department, the Cassville, Mo., Police Department, the Kimberling City, Mo., Police Department, and the Springfield, Mo., Police Department.

Updated March 22, 2023

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 EPA Press Office:

EPA Announces Final “Good Neighbor” Plan to Cut Harmful Smog, Protecting Health of Millions from Power Plant, Industrial Air Pollution

Plan reflects President Biden’s commitment to reducing air pollution, delivering environmental and public health benefits for all

WASHINGTON (March 15, 2023) – Today, the U.S. Environmental Protection Agency (EPA) announced the final Good Neighbor Plan, a rule that will significantly cut smog-forming nitrogen oxide pollution from power plants and other industrial facilities in 23 states. The final rule will improve air quality for millions of people living in downwind communities, saving thousands of lives, keeping people out of the hospital, preventing asthma attacks, and reducing sick days.

The Clean Air Act directs EPA to issue a federal plan to address pollution that significantly contributes to unhealthy levels of ground-level ozone, or smog, formed from nitrogen oxide emissions traveling beyond certain states’ boundaries. Exposure to ground-level ozone can cause respiratory issues, aggravate asthma and other lung diseases, and lead to missed days of work or school, emergency room visits, and premature deaths. These costly public health impacts can be especially harmful to children and older adults, disproportionately affecting people of color, families with low-incomes, and other vulnerable populations.

In addressing the significant contribution of upwind states to downwind smog, the program is anticipated to deliver important emissions reductions for environmental justice communities.

“Every community deserves fresh air to breathe. EPA’s ‘Good Neighbor’ plan will lock in significant pollution reductions to ensure cleaner air and deliver public health protections for those who’ve suffered far too long from air-quality related impacts and illness,” said EPA Administrator Michael S. Regan. “We know air pollution doesn’t stop at the state line. Today’s action will help our state partners meet stronger air quality health standards beyond borders, saving lives and improving public health in impacted communities across the United States.”

This action will reduce ozone season NO_X pollution by approximately 70,000 tons from power plants and industrial facilities in 2026. By 2027, the emissions budget for power plants will reflect a 50% reduction from 2021 ozone season NOx emissions levels.

In 2026 alone, EPA projects that the final rule will result in significant public health benefits:

• preventing approximately 1,300 premature deaths,
• avoiding more than 2,300 hospital and emergency room visits,
• cutting asthma symptoms by 1.3 million cases,
• avoiding 430,000 school absence days,
• avoiding 25,000 lost work days.

Reducing smog also has economic benefits. Estimated annual net benefits, after taking costs into account, would be $13 billion each year over the period from 2023 to 2042.  Reducing smog also will improve visibility in national and state parks and increase protection for sensitive ecosystems, coastal waters, estuaries, and forests.

Relying on a longstanding regulatory framework and commonly used, affordable pollution controls, this action fully resolves Clean Air Act “Good Neighbor” obligations for the 2015 Ozone National Ambient Air Quality Standards (NAAQS) for the included states, enhancing public health and environmental protections regionally and for local communities. EPA’s approach provides a long-term planning horizon for states, grid operators, and power companies to make informed decisions and continue to ensure electric system reliability.

The Good Neighbor Plan announced today will ensure that 23 states meet the Clean Air Act’s “Good Neighbor” requirements. The rule will reduce pollution that significantly contributes to problems downwind states face in attaining and maintaining EPA’s health-based air quality standard for ground-level ozone, known as the 2015 Ozone National Ambient Air Quality Standards (NAAQS). EPA’s rule uses a proven, science-based approach to limit emissions of NO_X during the summertime “ozone season”: a NOx allowance trading program for fossil fuel-fired power plants in 22 states and NOx emissions standards for certain sources within nine industry categories in 20 states.

Beginning in the 2023 ozone season, power plants in 22 states will participate in a revised and strengthened Cross-State Air Pollution Rule ozone season trading program. To achieve emissions reductions as soon as possible, EPA is basing the initial control stringency on the level of reductions achievable through immediately available measures, including consistently operating emissions controls already installed at power plants. Further reductions will be phased in over several years starting in 2024 and reflect emissions levels that could be achieved through installation of new emissions controls.

The final Good Neighbor Plan builds on the demonstrated success of existing emissions trading programs by including additional features that promote consistent operation of emissions controls to enhance public health and environmental protection for affected downwind regions. These features include backstop daily emissions rates on large coal-fired units to promote more consistent operation and optimization of emissions controls, annual recalibration of the emissions allowance bank, and annual updates to the emissions budgets to account for changes in the generating fleet.

Beginning in the 2026 ozone season, EPA is setting enforceable NO_X emissions control requirements for certain sources at existing and new industrial facilities that have significant impacts on downwind air quality and the ability to install cost-effective pollution controls.

These industry-specific requirements will apply in 20 states and reflect proven, cost-effective pollution reduction measures that are consistent with standards that sources throughout the country have long implemented. Collectively, these standards will reduce ozone season NOx emissions by approximately 45,000 tons from the following types of emission sources:  

• reciprocating internal combustion engines in Pipeline Transportation of Natural Gas;
• kilns in Cement and Cement Product Manufacturing;
• reheat furnaces in Iron and Steel Mills and Ferroalloy Manufacturing;
• furnaces in Glass and Glass Product Manufacturing; 
• boilers in Iron and Steel Mills and Ferroalloy Manufacturing, Metal Ore Mining, Basic Chemical Manufacturing, Petroleum and Coal Products Manufacturing, and Pulp, Paper, and Paperboard Mills; and
• combustors and incinerators in Solid Waste Combustors or Incinerators.

This final rule implements the Clean Air Act’s “Good Neighbor” or “interstate transport” provision, which requires each state to submit a State Implementation Plan (SIP) that ensures sources within the state do not contribute significantly to nonattainment or interfere with maintenance of the NAAQS in other states. Each state must make this new SIP submission within 3 years after promulgation of a new or revised NAAQS.

Where EPA finds that a state has not submitted a Good Neighbor SIP, or if the EPA disapproves the SIP, the EPA must issue a Federal Implementation Plan (FIP) within 2 years to assure downwind states are protected. 

More information on EPA’s final Good Neighbor Plan is available by clicking here.

For further information: EPA Press Office (press@epa.gov)

Gladstone Couple Pleads Guilty to Producing, Distributing Child Pornography

 Thursday, March 9, 2023

KANSAS CITY, Mo. – A Gladstone, Mo., husband and wife pleaded guilty in federal court today to producing and distributing pornographic images of two child victims.

Joshua Paul Goodspeed, 47, and Jennifer Goodspeed, 38, pleaded guilty in separate appearances before U.S. District Judge Brian C. Wimes. Joshua Goodspeed pleaded guilty to one count of conspiracy to produce child pornography, one count of attempting to distribute child pornography over the internet, and one count of receiving child pornography over the internet. Jennifer Goodspeed pleaded guilty to one count of attempting to distribute child pornography over the internet.

By pleading guilty today, Joshua Goodspeed admitted he used two child victims to produce child pornography from Jan. 1, 2011, to March 12, 2012. Goodspeed also admitted that he attempted to distribute child pornography on Nov. 17, 2020, and that he received child pornography over the internet on Feb. 29, 2012.

Jennifer Goodspeed admitted that she attempted to distribute an image of child pornography over the internet on Feb. 29, 2012.

Joshua Goodspeed pleaded guilty without a plea agreement.

According to Jennifer Goodspeed’s plea agreement, an FBI undercover investigation identified a social media file-sharing platform, which was knowingly accessing, importing, and maintaining video files that depicted the sadistic sexual exploitation, torture, and abuse of a toddler. Joshua Goodspeed was linked to an account on this social media site.

On June 16, 2012, the FBI executed a search warrant at the Goodspeeds’ residence. Federal agents seized Joshua Goodspeed’s iPhone, laptop and one computer hard drive, and interviewed both defendants. According to the plea agreement, Joshua and Jennifer Goodspeed admitted they took nude photos of two child victims.

Jennifer Goodspeed told investigators she sometimes sent some of the photos to her husband via cell phone or email while he was traveling.

Forensic examiners found hundreds of images of child pornography on the devices seized by agents, including photos of the two child victims that were produced by the Goodspeeds.

Under federal statutes, Joshua Goodspeed is subject a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 70 years in federal prison without parole. Jennifer Goodspeed is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

Under the terms of her plea agreements, Jennifer Goodspeed must pay $5,000 in restitution to each of 12 victims, or $3,000 to each victim if paid within 30 days of the sentencing hearing.

This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and 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."

Updated March 9, 2023

Olathe Man Pleads Guilty to Airport Disruption Following Police Chase on Downtown Airport Runway

 Press Release:

Also Pleads Guilty to Illegally Possessing Firearm

KANSAS CITY, Mo. – An Olathe, Kansas, man who led police officers on a high-speed chase down a runway at the downtown airport pleaded guilty in federal court today to disrupting airport operations as well as illegally possessing a firearm.

Efren Torres-Rodriguez, 35, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of damaging or disrupting an international airport and one count of being a felon and an unlawful user of a controlled substance in possession of a firearm.

Kansas City, Mo., police officers were notified of a suspicious car, a Dodge Charger, parked near a gate at the Charles B. Wheeler Downtown Airport on Feb. 1, 2022. When officers arrived, they found Torres-Rodriguez passed out in the driver’s seat of the running car. Officers turned off the car and opened the door, which woke up Torres-Rodriguez.

Officers ordered Torres-Rodriguez out of the car, but he refused. Instead, Torres-Rodriguez started the vehicle. An officer discharged his taser as Torres-Rodriguez drove away. Officers pursued Torres-Rodriguez, who crashed through the gate to the airfield. Torres-Rodriguez drove at speeds up to 100 miles per hour down the airport runway, with officers in pursuit. Torres-Rodriguez drove on a tarmac on the west side of the airfield. When he attempted to cross over the airstrip into a grassy area, his vehicle became inoperable.

Officers removed Torres-Rodriguez from the vehicle after he refused to get out, and placed him under arrest. Officers found a clear plastic bag in his pants pocket that contained 4.6 grams of methamphetamine.

When officers searched Torres-Rodriguez’s vehicle, they found a Glock .40-caliber semi-automatic handgun with an extended magazine, which were both empty of ammunition, under the driver’s seat. They also found several rounds of ammunition and drug paraphernalia.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Torres-Rodriguez has prior felony convictions for possession of a firearm with a prior violent offense, for being a felon in possession of a firearm, and for robbery.

Torres-Rodriguez was interviewed by law enforcement officials and admitted to using methamphetamine every other day and to smoking marijuana daily since he was 15 years old.

As a result of Torres-Rodriguez’s actions, the airport’s activities were significantly disrupted. For approximately 40 minutes, operations at the airport were closed and planes were not allowed to land or take off. Torres-Rodriguez’s further interfered with the operations at the airport as two aircraft had delayed departures, one aircraft had a delayed arrival and had to remain airborne for approximately 50 minutes, one aircraft had to cancel its flight and one aircraft did not depart. Torres-Rodriguez destroyed the gate and caused serious damage to the air navigation facility’s fence that is designed to keep both trespassers and animals away from the runways. In addition to disrupting the airport’s aviation services, Torres-Rodriguez’s actions endangered the safety of those utilizing the airport.

Under federal statutes, Torres-Rodriguez is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. 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 Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the FBI.

Project Safe Neighborhoods

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 

Updated March 8, 2023

Ludwig Göransson | Scoring The Mandalorian | Disney+

The Mandalorian Theme | The U.S. Army Band

KC Man Sentenced for Joplin Bank Robbery

 Press Release:

Robbed Two Banks on the Same Day

SPRINGFIELD, Mo. – A Kansas City, Mo., man was sentenced in federal court today for robbing a Joplin, Mo., bank with what appeared to be a handgun after he had just robbed a bank in Kansas earlier the same day.

Leland Scott Graham, 59, was sentenced by U.S. District Judge Brian C. Wimes to eight years in federal prison without parole.

On Aug. 2, 2022, Graham pleaded guilty to one count of bank robbery. Graham admitted he stole $24,478 from Great Southern Bank in Joplin on July 19, 2021. Graham displayed what appeared to be a handgun and told one of the tellers, “This is a gun, do you want me to shoot you?”  He then turned to another employee and said, “Hurry up or I will shoot you.” Graham later told investigators he put a black-handled screwdriver in his waistband so that the tellers would think it was a firearm.

As he left the bank, Graham dropped more than $5,000 on the floor, which was recovered by law enforcement.

Several hours before he robbed the bank in Joplin, Graham had robbed Landmark National Bank in Louisburg, Kansas. Surveillance images from the banks indicated the same suspect was involved in both robberies. When the Joplin Police Department released surveillance images to the media and requested the public’s assistance to identify the bank robbery suspect, investigators received a tip identifying Graham. Investigators used Graham’s cell phone to trace his location to Kansas City, Mo.

On July 20, 2021, Kansas City, Mo., police officers attempted to conduct a traffic stop, but Graham fled from officers in a Dodge van, leading them on a pursuit at speeds up to 95 miles per hour through residential neighborhoods. Graham stopped the van he was driving and, while trying to run from the police, tripped and fell, breaking his arm. Graham had almost $2,000 in his pocket. Officers searched the van and recovered almost $9,000.

After he was arrested, Graham told officers he had been on a five-day meth binge and had just taken $50 worth of crack cocaine. Graham told investigators he used some of the money stolen from Great Southern Bank to purchase the van that he was driving when officers attempted to stop him in Kansas City.

Graham has two prior felony convictions for bank robbery. He was convicted in 2004 of robbing Great Southern Bank in Joplin and First State Bank of Joplin and sentenced to 20 years in state prison. He was paroled on Jan. 6, 2020, and less than a year later stole a truck. He was sentenced for felony theft on Jan. 20, 2021, and while on probation seven months later committed the two bank robberies in Joplin and Louisburg on July 19, 2021. State charges remain pending in the Louisburg bank robbery.

This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Joplin, Mo., Police Department, the Miami County, Kan., Sheriff’s Department, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.

Updated March 1, 2023

Former State Lawmaker Sentenced for COVID-19 Fraud Scheme at Springfield Health Care Charity

 DOJ News Release:

Also Convicted of Stem Cell Fraud Scheme, Illegally Distributing Prescription Drugs

SPRINGFIELD, Mo. – A former Missouri state representative was sentenced in federal court today for a nearly $900,000 COVID-19 fraud scheme, as well as a separate $200,000 fraud scheme in which she made false claims about a fake stem cell treatment marketed through her clinics in southern Missouri, and for illegally providing prescription drugs to clients of those clinics.

“This disgraced health care professional exploited her patients, some with terminal illnesses, who came to her for medical care,” said U.S. Attorney Teresa Moore. “This disgraced former public official exploited her constituents as the community struggled during the Covid-19 pandemic by stealing public funds. She lied to her patients, to her community, and to federal agents. Today’s sentence holds her accountable for her fraud and deceit.”

Patricia “Tricia” Ashton Derges, 64, of Nixa, Mo., was sentenced by U.S. District Judge Brian C. Wimes to six years and three months in federal prison without parole. The court also ordered Derges to pay $500,600 in restitution to her victims.

“Derges exploited her position as an elected official and a medical professional to benefit herself financially with complete disregard, to not only her constituents, but to the oath she took as a health care professional to do no harm,” said Charles Dayoub, Special Agent in Charge of FBI Kansas City. “She not only fraudulently received nearly $300,000 in CARES Act funds, but also deceived patients by marketing fake stem cell treatment and illegally provided drugs to clients of her clinics. Her actions were a betrayal of trust, eroding the very core of our confidence in a system we rely on and damaging the public’s trust not only in our elected officials but in our health care system.”

“This official violated the trust of her constituents and her duties as an elected official, by putting personal profit before her community's health and well-being,” said Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Her sentencing demonstrates that there are consequences for stealing taxpayer dollars and endangering public health. HHS-OIG will continue to investigate allegations of federal health care fraud and to ensure that these funds are used for their intended purposes.”

On June 28, 2022, Derges was found guilty at trial of 10 counts of wire fraud, 10 counts of distributing drugs over the internet without a valid prescription, and two counts of making false statements to a federal law enforcement agent.

Derges was elected in November 2020 as a Missouri state representative in District 140 (Christian County) and served one term. Derges, who was never a physician, surrendered her assistant physician’s license on June 29, 2023. Derges formerly operated three for-profit Ozark Valley Medical Clinic locations in Springfield, Ozark, and Branson, Mo. Derges also operated the non-profit corporation Lift Up Someone Today, Inc., with a medical and dental clinic in Springfield.

COVID-19 Fraud Scheme

Derges was convicted of three counts of wire fraud related to her attempt to fraudulently receive nearly $900,000 in CARES Act funds. Derges actually was awarded $296,574 in CARES Act funds for Lift Up, although Lift Up did not provide any COVID-19 testing services to its patients. In fact, Lift Up’s medical clinic closed at the beginning of the COVID-19 pandemic and remained closed from March to June 2020.

Derges sought CARES Act funding for COVID-19 testing that had been provided, and already paid for, at her for-profit Ozark Valley Medical Clinic. Derges requested reimbursement for $379,294 in COVID-19 testing and related expenses, and future funding in the amount of $503,350. In total, Derges applied for $882,644 from the CARES Act Relief Fund on Lift Up’s behalf.

Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, which provided $150 billion to states, tribal governments, and units of local government. Missouri was allocated approximately $2.3 billion. Missouri allocated approximately $34 million in CARES Act funds to Greene County. To administer the CARES Act funds it received, the Greene County Commission created the CARES Act Relief Fund to “promote recovery by funding programs and services that support the needs of those impacted by the COVID-19 public health emergency.” An advisory council of 30 citizen volunteers was appointed to review funding requests and make funding recommendations to the Greene County Commission.

Derges claimed in her application to the Greene County CARES Act Relief Fund that Lift Up provided COVID-19 testing and she sought reimbursement for “COVID-19 eligible expenses” that Lift Up had incurred. To support her claim, Derges provided invoices totaling $296,574 from Dynamic DNA for more than 3,000 COVID-19 laboratory tests. Derges submitted the Dynamic DNA invoices as Lift Up expenditures, although they were actually for testing done at Derges’s for-profit Ozark Valley Medical Clinic.

Lift Up, a non-profit charity, and Ozark Valley Medical Clinic, a for-profit corporation, are separate legal entities. Ozark Valley Medical Center had already received payment from its clients of approximately $517,000 for these COVID-19 tests. Ozark Valley Medical Center charged clients, patients, or their patients’ employers approximately $167 per sample for its COVID-19 testing services. Derges concealed from Greene County that these COVID-19 tests had already been paid for by other payors.

In December 2020, the Greene County Commission awarded Lift Up $296,574 in CARES Act funding based upon Lift Up’s fraudulent application and the Dynamic DNA invoices Derges had submitted. Derges deposited the check into Lift Up’s bank account, then transferred the funds into Ozark Valley Medical Center’s bank account.

Derges provided several more invoices from Dynamic DNA to Greene County later in December 2020 to further support her application for Lift Up, although the invoices were actually for testing done for clients at Ozark Valley Medical Center, raising the total to $589,143 for 6,177 COVID-19 tests. Derges concealed from Greene County that Ozark Valley Medical Center already had been paid approximately $1 million by clients, patients, or their patients’ employers, for these COVID-19 tests.

Stem Cell Fraud Scheme

Derges also was convicted of seven counts of wire fraud related to a nearly $200,000 fraud scheme, which lasted from December 2018 to May 2020. Derges marketed a stem cell treatment that actually utilized amniotic fluid that did not contain any stem cells. The federal indictment charged her with defrauding four specific victims, each of whom testified during the trial.

Derges exclusively obtained amniotic fluid from the University of Utah, which she marketed under the name Regenerative Biologics. Derges advertised Ozark Valley Medical Clinic as a “Leader in … Regenerative Medicine,” including stem cells, and marketed her “stem cell” practice through seminars, media interviews, and social media. Derges made similar claims in personal consultations.

In fact, however, the amniotic fluid Derges administered to her patients did not contain mesenchymal stem cells, or any other stem cells. The amniotic fluid she obtained from the University of Utah was a sterile filtered amniotic fluid allograft (a tissue graft comprised of human amniotic membrane and amniotic fluid components derived from placental tissue). The amniotic fluid allograft was “acellular,” meaning it did not contain any cells, including stem cells.

Despite being told by the University of Utah that the University of Utah’s amniotic fluid allograft was “acellular” and did not contain mesenchymal stem cells, Derges continued to tell her patients and the public that the amniotic fluid allograft contained stem cells.

Derges administered amniotic fluid, which she falsely claimed contained stem cells, to patients who suffered from, among other things, tissue damage, kidney disease, chronic obstructive pulmonary disease (COPD), Lyme disease, and urinary incontinence. In an April 11, 2020, Facebook post Derges wrote of amniotic fluid allograft: “This amazing treatment stands to provide a potential cure for COVID-19 patients that is safe and natural.”

The University of Utah sold its amniotic fluid allograft to Derges for approximately $244 per milliliter and $438 for two milliliters. Derges charged her patients $950 to $1,450 per milliliter. In total, Derges’s patients paid her approximately $191,815 for amniotic fluid that did not contain stem cells.

Controlled Substances Act

Derges also was convicted of 10 counts of distributing Oxycodone and Adderall over the internet without valid prescriptions. Derges, without conducting in-person medical evaluations of the patients, wrote electronic prescriptions for Oxycodone and Adderall for patients and transmitted them to pharmacies over the internet.

Because none of the assistant physicians whom Derges employed at Ozark Valley Medical Clinic could prescribe Schedule II controlled substances, it was the standard practice of the assistant physicians to see a patient and later communicate to Derges the controlled substances they wanted her to prescribe to their patients. Derges, without conducting an in-person medical evaluation of the patients as required by federal law, wrote electronic prescriptions for the patients and transmitted the prescriptions over the internet to pharmacies.

False Statements

Derges also was convicted of two counts of making false statements to federal agents investigating this case in May 2020.

Derges told agents that the amniotic fluid allograft that she used in her practice contained mesenchymal stem cells, which she knew was false. Derges also told federal agents that she had not treated a patient for urinary incontinence with amniotic fluid allograft, which she knew was false.

This case was prosecuted by Assistant U.S. Attorney Shannon Kempf and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, Health and Human Services – Office of Inspector General, the DEA and the Missouri Attorney General’s Medicaid Fraud Control Unit.

Updated February 28, 2023

Joplin, Webb City Man Indicted for Drug Trafficking, Illegal Firearms

 DOJ Press Release:

SPRINGFIELD, Mo. – A Joplin and Webb City, Mo., man was indicted by a federal grand jury today for drug trafficking and illegally possessing firearms.

Milan Alexander, 42, who maintains residences in both Joplin and Webb City, was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Alexander on Feb. 3, 2023.

Today’s indictment alleges that Alexander possessed fentanyl, methamphetamine, and cocaine, all with the intent to distribute, on Feb. 2, 2023.

The indictment also charges Alexander with one count of being a felon in possession of firearms. Alexander was allegedly in possession of two Glock 9mm pistols, two Century Arms Mini Draco 7.62-caliber pistols, a Springfield Armory .45-caliber pistol, a Heckler & Koch 9mm pistol, and a Brigade multi-caliber pistol on Feb. 2, 2023.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Alexander has three prior felony convictions for possession of a controlled substance and two prior felony convictions for resisting arrest, as well as prior felony convictions for being a felon in possession of a firearm, aggravated fleeing from law enforcement, possession of marijuana with the intent to deliver, and possession of a controlled substance with the intent to deliver.

According to an affidavit filed in support of the original criminal complaint, detectives with the Ozark Drug Enforcement Team found a total of 649 grams of fentanyl, two firearms, and a box that contained 750 rounds of 9mm ammunition and 320 rounds of 7.62 ammunition in Alexander’s Joplin residence. Detectives also found a duffel bag that contained six firearms at Alexander’s Webb City residence.

Following the execution of search warrants at both of his residences, law enforcement officers attempted to conduct a traffic stop to arrest Alexander. Alexander led officers on a high-speed pursuit until his vehicle was disabled by tire deflation devices deployed by Seneca, Mo., police officers. Alexander then fled on foot but, after an extensive search with the assistance of a police support dog, was found hiding in a shed.

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 Cameron A. Beaver. It was investigated by the FBI, the Ozark Drug Enforcement Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the Newton County, Mo., Sheriff’s Department, the Seneca, Mo., Police Department, and the Jasper County, Mo., Sheriff’s Department.

Organized Crime and Drug Enforcement Task Force

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Updated February 28, 2023

KC Man Sentenced to 21 Years for Heroin, Cocaine Conspiracy

 Press Release:

High Speed Police Chase Led Through Neighborhoods, Past Schools, into a Park

KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and cocaine after leading law enforcement officers on a high-speed chase through several neighborhoods, past two schools, and into a park.

Michael A. Baldwin, 62, was sentenced by U.S. District Judge Greg Kays to 21 years and 10 months in federal prison without parole. Baldwin was sentenced as a career criminal due to his prior felony convictions. Today’s sentence also reflects an enhancement for recklessly creating a substantial risk of death or serious bodily injury to another person in the course of fleeing from a law enforcement officer.

On June 2, 2022, Baldwin pleaded guilty (a few days before his trial was scheduled to begin) to one count of conspiracy to distribute cocaine and heroin, one count of possessing heroin with the intent to distribute, and one count of possessing cocaine with the intent to distribute.

Baldwin was arrested on Nov. 18, 2019, when a confidential source met him at the Peachtree Restaurant on Eastwood Trafficway in Kansas City, Mo., and delivered cocaine and heroin from co-defendant Darey Enrique Salcido-Dominguez, 39, of Mesa, Arizona.

As the confidential source left the area after delivering the cocaine and heroin to Baldwin, law enforcement officers approached Baldwin in police vehicles with their emergency equipment activated. Baldwin, who was driving a 2007 Land Rover, took off at a high rate of speed, fleeing from the officers at speeds up to 70 miles per hour through several neighborhoods and past George Washington Carver Dual Language Elementary School and George Melcher Elementary School. Baldwin ran stop signs and drove through the green space of Vineyard Park before he wrecked his vehicle in a wooded area. Baldwin attempted to flee on foot but was apprehended.

When officers searched the Land Rover they found several bundles that contained a total of approximately 3.27 kilograms of heroin and approximately 1.19 kilograms of cocaine.

On the same day as the delivery to Baldwin, the confidential source also had been instructed by Salcido-Dominguez to deliver three kilograms of cocaine to co-defendant Kelvin R. Williams, 53, of Kansas City, Mo., one kilogram of cocaine to co-defendant Raleigh G. Austin, Jr., 53, of Kansas City, Mo., and two kilograms of cocaine to co-defendant Terry D. Finch, 53, of Kansas City, Mo. Finch also gave the confidential source $2,000.

According to court documents, the confidential source began cooperating with law enforcement after he was stopped by the Kansas Highway Patrol on Nov. 14, 2019. The trooper seized a duffel bag from the vehicle of the confidential source, which contained $269,020. He told federal investigators he worked as a courier for Salcido-Dominguez and had been transporting nine to 18 kilograms of cocaine and black tar heroin every two weeks for the past eight months. He also transported the illicit proceeds of the drug-trafficking conspiracy back to Salcido-Dominguez. He told investigators that Baldwin typically received two or three kilograms of heroin every two weeks.

Baldwin has a prior felony conviction for second-degree murder and a prior felony conviction for aggravated robbery/aggravated assault for an armed robbery in which an employee of the victim business was shot.

Baldwin is the fourth defendant to be sentenced in this case. Williams was sentenced to 22 years in federal prison without parole. Finch was sentenced to 19 years and seven months in federal prison without parole. Austin was sentenced to six years in federal prison without parole.

Salcido-Dominguez pleaded guilty to his role in the drug-trafficking conspiracy and will be sentenced on April 5, 2023.

This case is being prosecuted by Assistant U.S. Attorneys Gregg Coonrod and Nicholas Heberle. It was investigated by the FBI and the Kansas City, Mo., Police Department.

Updated February 28, 2023