Alleged cigarette bootleggers making millions?

I came across this article in the Kansas City Star and I found it quite interesting.  Supposedly these "bootleggers" were buying up cigarettes in states with low tax rates like Missouri then shipping them off to states with high tax rates and selling them for less than the cost of "tax-paid cigarettes" and netting a fortune.  Now the FEDs have come down on them and are seizing cigarettes that other companies have already paid for.  I'll be following this one...

Bootleg cigarette case has ties to Kansas City area

Read more here: http://www.kansascity.com/2012/09/23/3830656/bootleg-cigarette-case-has-kansas.html#storylink=cpy

By Tony Rizzo
The Kansas City Star
In a case that started in the aisles of a Kansas City convenience store, federal authorities say they have uncovered a nationwide conspiracy to illegally traffic tens of millions of dollars worth of cigarettes.
Several area residents allegedly were at the hub of the enterprise. Although no criminal charges have been filed, federal prosecutors this year seized more than $2.6 million from individuals and their bank accounts as part of the ongoing investigation.

Prosecutors are pursuing the forfeiture of the money, a $550,000 airplane and four semi trucks that authorities contend were purchased with illegally obtained proceeds. A Lee’s Summit man is among those trying to get some of the money back.  The scope of the alleged conspiracy is outlined in a 101-page civil complaint that prosecutors filed in U.S. District Court in Kansas City.  The investigation started in December 2009, after authorities discovered “contraband” cigarettes — ones that lacked tax stamps — being sold illegally at Kansas City area convenience stores, according to the federal complaint.

Investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives traced the cigarettes to a local company, Cheap Tobacco Wholesale, according to the court documents. The ATF subsequently utilized wiretaps, tracking devices on delivery trucks, physical surveillance and undercover agents in the case, which expanded to include individuals and companies based in Nebraska, Oklahoma, Florida, New York and Canada.  The civil complaint lists 20 individuals or business entities identified as subjects of the investigation or persons of interest.

Among them are residents of Independence and Lee’s Summit, according to the complaint.  As part of the investigation, undercover ATF special agents conducted more than 50 transactions involving more than 6.7 million packs of cigarettes with alleged conspirators between August 2010 and January. Most involved the owners or employees of Cheap Tobacco Wholesale, the complaint contends.  That company’s owner, James Aboud, was the investigation’s original target, according to the court documents. After he died in October 2011, the undercover transactions continued with his successor. He could not be reached for comment for this article.

According to the complaint, the transactions involved cigarettes with no stamps affixed to them to indicate that taxes had been paid.  Such stamps are required in every state except North Carolina, North Dakota and South Carolina for packs of cigarettes sold to retail outlets for purchase by the public.  According to federal prosecutors, tax stamps are not required for cigarette transactions between wholesalers, but the transactions must be reported to state revenue authorities by both parties involved in the transaction. Stamped and unstamped cigarettes must be reported.  During the undercover investigation, ATF agents sold unstamped cigarettes to Aboud and Sheffler, who then sold them to others, the complaint alleges.

Prosecutors contend that conspirators either did not report the transactions or supplied false information to state authorities about the transactions.  Most of the cigarettes eventually were sold in New York, depriving that state of significant tax revenue, according to the federal complaint.
Trafficking in contraband cigarettes occurs throughout the country, said Special Agent Trista Frederick, a spokeswoman for the ATF in Kansas City. Because of the underground nature of the business, its scope is hard to quantify.  “It can be quite lucrative,” she said.

In one California case she investigated, state revenue officials estimated that over an 18-month period the state was deprived of about $17 million in tax revenue, Frederick said.  It is typical for contraband tobacco products to be purchased in low-tax states and distributed in high-tax states, she said.  That appeared to be the situation in the current investigation, according to the court documents filed by prosecutors.  Missouri’s 17-cent tax per pack is the lowest in the country, while New York has a per pack tax of $4.35, according to court documents and information provided by the ATF.

“By selling non-tax paid cigarettes at, or just below ‘tax paid prices,’ criminal organizations are able to net a substantial profit,” according to an ATF fact sheet about tobacco-related crimes.  Agents seized the money and property that is the subject of this forfeiture case in January.  So far, three claims have been made for some of the money, and a Florida-based company that had $299,428.63 seized from its bank account has filed a motion to dismiss the action.  Olathe attorneys Carl Cornwell and Tai Vokins represent that company, Brand Name Connoisseurs. In the motion to dismiss, they maintain that the company, known as BNC, had no legal obligation to affix tax stamps.

Their motion argues that if Missouri law is “properly applied,” the undercover ATF agent or Cheap Tobacco Wholesale would have been required to pay the tax. Both lawyers declined to comment on the case.  Another claim for approximately $280,000 has been made by a Lee’s Summit man, who is alleged in the government complaint to have provided large amounts of cash to others to purchase cigarettes from the undercover agent. Kansas City attorney Chris Angles, who represents that man, declined to comment.

The third claim was filed by Kansas City attorney Mark Thornhill on behalf of HCI Distribution Co., a Native American business based in Nebraska. According to its claim, it paid $221,000 to BNC for a shipment of cigarettes that were seized by authorities before they were delivered.  HCI “purchased these cigarettes in good faith,” according to its claim.  Thornhill declined to comment.

Read more here: http://www.kansascity.com/2012/09/23/3830656/bootleg-cigarette-case-has-kansas.html#storylink=cpy

Semi-Truck runs into diner and kills Nevada Man

A terrible semi-truck accident claims the life of a Nevada man after semi truck crashes into local restaurant.  This is just a sad story where a local man that went to the same restaurant nearly everyday and sat and had a cup of coffee, was in the wrong place at the wrong time. Thoughts and prayers go out to the family.

Victim of Missouri diner crash always sat in the same booth
Here is the article in the KC Star.

NEVADA, Mo. -- Joseph Cole, the customer who died Friday when a tractor-trailer plowed into a diner, went there for coffee nearly every day and always sat in the same booth, his son says.  The Missouri Highway Patrol said Cole, 54, was killed when the semi barreled into the Quick Dine Restaurant.

“I just knew it. I knew where he sits in the diner and the truck was right through there,” said Travis Cole, a Nevada police officer who was off duty at the time of the crash. “I had someone call and ask if I was working the accident up there. I wasn’t, but as I saw the scene and the truck, I knew right away. My dad was always there.”

Cole told The Star’s reporting partner, KCTV5, that he has seen his share of bad accidents but wasn’t prepared for a crash like the one that killed his father.  “It doesn’t seem real. It hasn’t kicked in yet. I’m sure it will once everything settles down.”

Fellow diner John Becker, 72, of Nevada, was listed in critical condition Saturday night, while Roger Berning, 60, of El Dorado Springs, was in good condition. A fourth person, Pamela Hoover, 47, of Nevada, was taken by ambulance to a hospital with moderate injuries.  The Highway Patrol said the accident happened after a car pulled away from a stop sign and into the path of the semi, which was southbound on U.S. 71. The truck driver tried unsuccessfully to avoid hitting the car, then slammed into the restaurant. Neither driver was injured.

Read more here: http://www.kansascity.com/2012/10/20/3876608/victim-of-missouri-diner-crash.html#storylink=cpy

Two men dead after Car Crash in Overland Park

Stumbled upon this article on NBC Channel 41's website.  This happened just up the street from my office and it is just terrible.  A couple of men got in an car accident in Overland Park and both ended up passing away.   My prayers go out to the grieving families.  Hopefully the families or their representatives will do some investigation and determine what actually happened and hold the party at fault responsible.  Here is the story.

 

 

 Police identify victims of fatal crash at 103rd Street and Nall

By: 41 Action News Staff

KANSAS CITY, Mo. - Police have identified two men killed in a car crash Saturday morning at an Overland Park intersection.  A witness told police that around 5:40 a.m., a red Ford 250 pickup truck was traveling southbound on Nall Avenue when it collided with a gray Buick traveling westbound on 103rd Street. The truck then struck a light pole.

The driver of the truck, identified as 49-year-old Wayne Willeford, of Prairie Village, Kan., was pronounced dead at the scene, according to a statement from the Overland Park Police Department.
The driver of the Buick has been identified as William Pennington, 77, of Overland Park. Pennington was transported to an area hospital, where he later died.

Pennington's wife, Evelyn, said she found the accident blocks from their home. She had gone looking for Bill because he hadn't shown up for a doctor's appointment.  Pennington endured tragedies like losing a sibling at a young age and losing a child. That, family members say, is why he lived life to the fullest and never took life's stresses too seriously. He loved to tell stories and adored his only grandchild. He and Evelyn had been married almost 60 years. He loved being outdoors and took up hobbies like cowboy shooting and golf.

His son, Gregg, hopes people will use their tragic loss as a reminder to be better behind the wheel after such a simple decision took their father's life.  "There are a lot of people out there that don't realize that they're driving one-ton and two-ton and three-ton lethal weapons," Pennington said. "They can be more respectful to each other and traffic."  There was no one else in either vehicle at the time of the crash.

Kansas City man dubbed a Hero after he saved man from burning car

It's always nice to find someone is out there doing the exceptional.  This last week it looks like we had one in Kansas City.  I man was sitting in a mini-van waiting for the light to turn when suddenly a sedan ran the light and smashed into the mini-van and a school buss full of kids.  The man in the mini-van was Marvin Brantley and although he was injured in the car wreck he sprang into action to help the person who just hit him.  Marvin Brantley dragged the person out of his car as it caught fire.  There have been a couple of stories written about this hero.  Here is one on KCTV5.


KCTV5

 Man Being Called a Hero after pulling injured driver from burning car
By DeAnn Smith  By Dave Jordan  By Laura McCallister  By. Sandra Olivas

KANSAS CITY, KS (KCTV) -
It was a vicious crash that could have been much worse. One of the reasons it wasn't is because of one man who pulled a survivor from a burning car.  "I knew I was hurt, but that didn't matter at that point. I was living and trying to make sure everybody else survived," Marvin Brantley Jr. said.  The crash that happened at 38th Street and Leavenworth Road about 5 p.m. Thursday could have had deadly consequences had it not been for a man who jumped into action and pulled an injured driver out of his burning car.  "I think I done what was right under the circumstances and I'd do it again for anybody," Brantley said.

Brantley came back to the crash site the following day before heading to a doctor's appointment to reexamine his injuries.  "I'm alright - just a little sore in my rib area and my back a little bit. I survived," he said.  Brantley was the passenger in a van with his friend and her 8-year-old son when another car failed to stop at the light.  "He ran a red light, but I can't determine what the situation was. There was no tire marks so I don't know if he's having a heart attack, seizure or was drunk or anything," Brantley said.

The car slammed into a Kansas City, KS, school bus filled with children on their way home.  A KCK School District student suffered serious injuries. The student was rushed to the hospital but is expected to survive, district spokesman David Smith said. A second student suffered minor injuries.
"The black car came careening west and hit the school bus, knocked the bus in the air and to the front of our vehicle," Brantley said.

When Brantley saw everyone in his van was OK, he checked on the children and saw the bus driver getting those students out safely so he ran over to help the other driver who had a bloody face.
"I was pulling him out and he was stuck and another guy came to help me and then they told me to back away from car and it was on fire," Brantley said. "I didn't want to leave him in the burning vehicle, so I kept on pulling him and got him out of the vehicle and dragged him over into the intersection."  Brantley said seeing the car on fire was scary, but he simply would never hesitate to help someone in need.

"Not exactly. I feel like I did exactly what I was supposed to do under the circumstances," he said when asked if he feels like a hero.  Christian Ryan, 8, was in the same vehicle as Brantley. His grandmother was behind the wheel when they were hit head-on by the bus.  Ryan described his panic.
"I was just really freaked out. I almost went ballistic," he said.  Becky Ryan, his grandmother, said it is fortunate no one died in the crash because of how bad it looked.  "There was a lot going on at one time," she said. "It was a big impact. It's terrifying to think how bad it could have been."  Brantley said the driver was at the same hospital where he was taken. He asked about him and was told the driver remains in the ICU. Brantley said he hopes he gave the driver a fighting chance to survive the accident.
The bus was transporting Eisenhower Middle School students from after-school activities when the crash occurred, Smith said. Some parents came to pick up their children while another bus was brought to the scene to help get the remaining students home.

At least 30 children were on board the bus.

Kansas City Attorney accused of killing father makes $1 million bond

Where did the money come from?  That's what everyone wants to know.  The accused herself was supposedly broke and just declared bankruptcy, but somehow a million dollar check made its way to the courthouse so that Susan Elizabeth Van Note could get out of jail.  Her criminal defense attorney doesn't know..the bankruptcy trustee doesn't know..the prosecutor doesn't know... and everyone is left wondering.  Who made the million dollar cash only bond on Susan Van Note?

Here is the article in the Kansas City Star.

 

 KC attorney's posting of $1M bond raises questions

KANSAS CITY, Mo. —

Three years ago, Kansas City attorney Susan Elizabeth Van Note filed for bankruptcy, unable to pay nearly $400,000 in debt. Last week, she was able to come up with $1 million for a cash bond while awaiting trial in the death of her father for allegedly forging documents to deny him life-sustaining medical treatment.

The trustee in the bankruptcy case wants to know where that bond money came from, The Kansas City Star reported Wednesday.  Attorney Erlene Krigel said at the time she couldn't find any assets to help satisfy the creditor claims against Van Note, who owed more on her home and two car loans than the property was worth. Krigel said she would inform the U.S. Trustee Office, which appointed her to the case and is an arm of the Department of Justice.  "It's very important we know where that money came from," she said.

Defense attorney Tom Bath said he doesn't know where his client got the bond money. He also couldn't identity of the person who presented a cashier's check at the Boone County Jail. But he suggested a friend could have helped.  Van Note has pleaded not guilty to felony forgery and first-degree murder charges. Her father, 67-year-old William B. Van Note, and his companion, 59-year-old Sharon Dickson, were shot at their Lake of the Ozarks home in Sunrise Beach in October 2010.

Dickson died at the scene, while the elder Van Note was hospitalized for four days before his daughter allegedly gave doctors a forged durable power of attorney that persuaded them to remove his life support. Charges haven't been filed in Dickson's death.  Some are wondering whether any of the bond money came from the estate of William Van Note, a millionaire businessman.  Camden County prosecutor Brian Keedy said he too was surprised that Van Note is out of jail. On Tuesday, he went to the Columbia courthouse to view the cashier's check, which was drawn on Landmark Bank.  "I've never heard of anyone making a million-dollar cash-only bond," Keedy said. "But if she has the ability to do it ."

Van Note's attorney has acknowledged his client forged the document but said she did so only because she couldn't find one her father actually signed. Bath also said no physical evidence places Liz Van Note at the crime scene.  A high school classmate of Liz Van Note and the classmate's husband also face charges for allegedly signing the power of attorney as witnesses.  On Sept. 12, about a week after the criminal indictment, an attorney for Sharon Dickson's adult son asked a Clay County judge to remove Liz Van Note from serving as personal representative of her father's estate. According to a lawsuit, William Van Note's will named Sharon Dickson to be personal representative of his estate, but only if she outlived him.

Judge Larry Harmon, citing the charges against Liz Van Note, suspended her from the position, appointed a replacement and ordered that no distributions from the estate take place without a court order.

National Database goes after Drivers with Unpaid Speeding Tickets

I came across this video on the Fox4 news webpage. It describes the mess that the National Driver Registry has caused some people. The National registry was created to help states identify people that had license suspensions in different states and keep them from going across state lines to get a new license when they should not have one.

This all sounds well and good but states are now using it to collect on speeding ticket and traffic tickets. We all know that the economy is not great and States are doing whatever is necessary to generate revenue, well this is now creating another source. States are combing through the old speeding tickets and traffic tickets that are unpaid and now entering them into this NDR (National Drivers Registry) and suspending people's license based on not taking care of their old tickets.

Most people have no idea until it is too late and they have been pulled over and are facing a Driving on Suspended charge. Here it a link to the video. Below is the story and a link to the NDR and a Q&A for people who are facing a Driving on Suspended Charge.

Video:

http://fox4kc.com/2012/10/08/national-database-goes-after-drivers-with-unpaid-speeding-tickets/#ooid=NrMDg0NjrbaTADlkAxO-TTr1JIVsF1Gr

Link to the NDR:
http://www.nhtsa.gov/Data/National+Driver+Register

Driving on Suspended:
http://www.kcticketguy.com/suspended.html

National Database Goes after Drivers with Unpaid Speeding Tickets 

KANSAS CITY, Mo. — Do you have any unpaid speeding tickets? They could come back to haunt you. States are using a national database designed to track down problem drivers, including drivers with unpaid speeding tickets. If your name appears on the database you could find yourself unable to renew your driver’s license.

That’s what happened to a Missouri man when Florida went after him for a 1983 ticket.

FOX 4 Problem Solver Linda Wagar has the story.

Bondsman gets sued over harassing wrong people

I saw this article in the Wichita Eagle.  It is crazy what some of these bondmen think they can do.  This is not the first time I have heard of this type of behavior.  Just a month or so ago a young lady came into our office after having been arrested by a bond agent and taken to jail, only to find out she didn't even have a warrant.  The State needs to real these guys in.  Some of these rouge bail bondsmen run around playing cop and end up harassing good people.



Lawsuit alleges bond agent came to wrong Hutch home with guns drawn

By Tim Potter -Wichita Eagle

Agents for bondsmen trying to catch a fugitive in Hutchinson forced their way into the wrong house with guns drawn, awakening and frightening children inside, a lawsuit alleges.  The lawsuit, filed in Reno County District Court, contends that the agents’ actions were “extreme and outrageous” and asks for “in excess of $75,000” in damages.  Defendants are disputing the allegations. Stanley Juhnke, an attorney representing one of the defendants, said: “We admit they were there on the night this took place, but we dispute almost everything else.”  According to the lawsuit, around Sept. 21, 2011, the bond agents were looking for “Lorenzo” but went to the wrong address in the 100 block of East Seventh Street in Hutchinson. A woman knocked on the front door and asked the resident, Samantha Castor, if “Lorenzo” was there and if Castor was “Melissa,” Castor said no to both questions. About the same time, several men broke in through the back door using a crowbar, Castor’s lawsuit says.
“The men were dressed in black and appeared to be police officers, and searched Plaintiffs’ home with drawn guns, pointing guns at each of the Plaintiffs,” the lawsuit says. “The men kicked open the door to the boys’ room and entered with drawn guns stating that they were looking for monsters.” It was shortly before 10 p.m. on a Wednesday.

The lawsuit says the men “refused to allow Samantha Castor to go and be with her minor children while the men searched the home with their drawn guns and entered the bedrooms where the children were sleeping, awakening the children and causing fear.” The children were awakened “by strange men dressed in black with guns,” the lawsuit says. Castor’s children were 10, 8 and 5 at the time.
Castor’s attorney, Matthew Bretz, said the goal of the lawsuit is not to gain money — the lawsuit seeks more than $75,000 — but to dissuade bond agents from the kind of actions described in the lawsuit.
The lawsuit currently names seven defendants: Dwight Jurgens, Tiffany Cleavenger, Gayle Benitez, John Green, Roy Poyner, Jake Lawson and Trina Green. Jurgens and Cleavenger were doing business as TNT Bonding, according to the lawsuit. The men and the woman who came to the home were agents of Jurgens and Cleavenger, and those two are liable for the agents’ actions, the lawsuit says. It says defendants gave the men and the woman the wrong address.

Neither Jurgens or Cleavenger are still agents with TNT, said a man who identified himself as a manager with TNT and declined to give his name.  Juhnke, the attorney who is representing Benitez, one of the defendants, told The Eagle, “There is a huge dispute as to what happened that night. We are confident that at the time of trial, the defense version will prove correct.” Juhnke said Benitez is a bond agent in Hutchinson working as an independent contractor. He said Benitez was there that night “only in a role to assist to see if the person they were looking for was there.”

John Green, another defendant, sent a letter to Castor’s lawyer in July denying all allegations and statements by Castor. The letter said that if the lawsuit was not dismissed, Green would file a counter claim “for loss of wages, all legal expenses, mental anguish, slander, defamation of character, damages … for over $200,000.”  Green, reached Friday by The Eagle, said, “I’m waiting for my day in court.”
In a separate case, involving Jurgens and his role as a bondsman, Jurgens is facing two misdemeanor charges of attempted promotion of prostitution. According to court documents, the alleged crimes occurred around Sept. 18 and Sept. 21. District Attorney Keith Schroeder said the allegations are that Jurgens “was soliciting sexual favors in return for his involvement as a bondsman.”

Neither Jurgens nor his attorney could be reached for comment.

Kyle Smith, deputy director of the Kansas Bureau of Investigation, said Kansas law requires bondsmen or bounty hunters to inform law enforcement officers of their intent to apprehend someone, and failure to do so is a misdemeanor, and a felony for second or subsequent incidents. The law says the bond agent must inform local law enforcement officials “before attempting such apprehension” and says “law enforcement may accompany … the agent.”  Green told The Eagle that before the agents went to Castor’s home, they notified Hutchinson police, and police “were in the vicinity of that house, and they were sitting on a street corner watching us when we left. The reason they were there, why we called them, is we needed them close,” Green said.

Hutchinson police Capt. Troy Hoover said he couldn’t confirm if police had been notified, “but I couldn’t say that it didn’t happen.”  It’s not clear if “Lorenzo” was ever caught.  Compared with other states, Kansas law is vague about what bondsmen or bounty hunters can do, said Stephen Owens, owner of Wichita-based Owens Bonding Inc. and president of the Kansas Bail Agents Association.
A bond agent trying to catch someone should call 911 dispatchers and inform them when they are going to apprehend someone wanted by a court, Owens said.  Still, he said, if a resident has someone show up at their door acting suspiciously, they should call 911.

“The majority of bondsmen are very professional and take their job very seriously,” Owens said.

Read more here: http://www.kansas.com/2012/10/07/2520181/lawsuit-alleges-bond-agents-came.html#storylink=cpy