WASHINGTON – A former Kansas bank executive was found guilty by a federal jury Monday for his participation in a bank fraud scheme to obtain a $15 million construction loan for certain bank customers based upon false and fraudulent representations, according to the United States Department of Justice.  The loan was shared among 26 Kansas banks.

Troy A. Gregory, 52, of Lawrence, Kansas, was found guilty of four counts of bank fraud and two counts of false statements, as charged in a November 2017 indictment.  The jury failed to reach a verdict as to one count of conspiracy.  Sentencing is scheduled for Jan. 28, 2020, before U.S. District Judge Carlos Murguia of the District of Kansas, who presided over the trial.

According to the evidence submitted at trial, Gregory was a bank executive and loan officer who had made millions of dollars in loans to a group of borrowers who were struggling to make payments on the loans. 

Beginning in approximately late 2007, Gregory began the process of making a $15.2 million construction loan to build an apartment complex to that same group of borrowers.  Gregory’s bank shared this loan with 25 other Kansas banks. Gregory made and caused others to make false statements to the banks about the strength of the borrowers, the debt status of the apartment property and the existence of approximately $1.7 million in certificates of deposit for collateral on the loan, all to get the loan approved. Instead of using the loan funds promised for building the apartments, Gregory immediately diverted over $1 million of the loan to pay for part of the certificates of deposit pledged as collateral, pay off debt on the apartment property, and make payments on unrelated loans, the evidence showed.  Other Kansas banks that shared in this loan would not have participated in the loan without the false representations and promises.  The banks ultimately wrote off millions of dollars on the $15.2 million construction loan, the evidence showed.

The FDIC-OIG, IRS-CI, FBI and FHFA-OIG are investigating this matter.  Trial Attorney Andrew R. Tyler and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section are prosecuting the case.

KANSAS CITY (AP) — A former teacher at a Catholic school in Kansas City alleges in a lawsuit that she was fired because she was pregnant and unmarried.

A jury trial is scheduled to begin Monday in Michelle Bolen’s lawsuit against the principal of St. Therese Catholic elementary school and the Diocese of Kansas City-St. Joseph.

Bolen had worked for the school for nearly 15 years when she lost her job in July 2015. Diocese spokesman Jack Smith says her contract wasn’t renewed for reasons that have nothing to do with her pregnancy.

The suit says Bolen was harassed and that a letter sent to staff announcing that she was expecting described her pregnancy as “less than ideal.” Bolen now works at another school.

WICHITA, Kan. (AP) — A 23-year-old Wichita woman has been charged with first-degree murder in the death of her 2-year-old son.

Kimberly Compass was charged Tuesday in the death of Zayden JayNesahkluah, whose body was found May 31 at a Wichita motel. Authorities have not said how Zayden died.

A criminal complaint filed Tuesday in Sedgwick County says Compass killed her son while committing another felony, aggravated child endangerment.

Compass, who was arrested last Thursday, remains jailed on $500,000 bond for the murder charge and $1 million bond for a probation violation. Her next court date is Sept. 5.

Zayden is at least the ninth child age 5 or younger to die in the Wichita area under suspicious circumstances since 2017. Several of them died after state welfare officials had contact with their families.

___

DOUGLAS COUNTY —Law enforcement authorities are investigating a burglary and working to identify a suspect.

Just before 4a.m. August 13,  an unknown suspect burglarized the Islamic Center, 1917 Naismith Drive. in Lawrence, according to officer Patrick Compton.

Police are seeking the public’s help in identifying the suspect described as a black male, heavyset in his 20s with a light mustache. At the time of the incident, he was wearing a red NBA hoodie, hat and blue jeans.

Surveillance footage shows the suspect entering the worship center and removing two donation boxes containing approximately $1,000 – $2,000 in cash.

The morning of the incident, the suspect was believed to be driving a maroon or red four-door sedan.

SEDGWICK COUNTY —Presidential candidate Beto O’Rourke made an unexpected stop in Kansas Tuesday morning. Wichita District one councilman Brandon Johnson invited The former Texas congressman to R Coffee House 1144 Bitting Street.

We’re going to communities that have for too long been forgotten and counted out—not only to learn about their challenges, but to learn about how they’re overcoming them. Grateful that Councilman Johnson would welcome us to Wichita and that Angelo would host us at R Coffee House. pic.twitter.com/LJa1trz9O9

— Beto O’Rourke (@BetoORourke) August 20, 2019

O’Rourke is also scheduled to tour the Veterans Community Project and join a roundtable discussion with VCP staff in Kansas City Tuesday, according to an email from his campaign.

The nonprofit founded and run by combat veterans has worked to end homelessness among veterans in Kansas City.

O’Rourke suspended his White House bid for nearly two weeks to stay in his hometown of El Paso, where a mass shooting killed 22 people on Aug. 3.

FORT SCOTT, Kan. (AP) — A man charged with tampering with a vehicle owned by two missing Wisconsin brothers is facing new charges in Kansas.Garland Nelson is charged in Bourbon County, Kansas, with endangering the food supply. Prosecutors say Nelson didn’t have proper health papers when he took 35 calves from his family’s farm in Missouri to a farm in Fort Scott, Kansas, in May.

In Missouri , prosecutors allege Nelson abandoned a rental truck used by Justin and Nick Diemel, of Shawano County, Wisconsin, after the brothers visited the Nelson farm in Braymer, Missouri. The brothers were reported missing July 21 and are presumed dead.

A Kansas farmer, David Foster, said the 35 calves brought to his pasture were sick . He says he and Nelson bought 131 calves together but the other 96 died.

SEDGWICK COUNTY — Law enforcement authorities continue their investigating an accident that killed a 46-year-old Kansas man.

Just after 5:30a.m. August 2, officers responded to an injury accident at Central and Market in Wichita, according to officer Charley Davidson.. Upon arrival, officers located a man later identified as 46-year-old Kestrno Rodriguez of Wichita in the street with injuries.

He was transported to an area hospital for treatment of critical injuries. On August 17, he died of his injuries, according to Davidson.

The investigation revealed a 44-year-old driving a 2007 Hyundai Accent eastbound on Central and struck Rodriguez who was walking in the street.

The WPD Critical Accident Team responded to assist with the investigation. Speed, alcohol and drugs pertaining to the driver are not believed to be a factor.

EL DORADO, Kan. (AP) — Authorities have found a marijuana farm worth more than $1.7 million while chasing a suspect.

The discovery was made Sunday when deputies with the Butler County Sheriff’s Office responded to a residential burglary near El Dorado.

The sheriff’s office says the deputies pursued the burglary suspect when he ran into a field. As the deputies searched for the suspect, they spotted a couple men who also took off running. One of those men was captured, leading the deputies to a nearby cultivated marijuana field.

On Monday, deputies, Kansas Bureau of Investigation agents and Kansas Highway Patrol troopers entered the property and seized more than 1,700 cultivated marijuana plants. They also found a camp site with tents, a cooking area and water pumps used to irrigate the plants.

SALINE COUNTY — Law enforcement authorities are investigating a suspect for multiple sex allegations while working for a Kansas foster care, adoption organization.

Following a three-month investigation deputies arrested deputies arrested Nathaniel McEachin, 39, of Salina, was arrested Monday on requested charges that include suspicion Rape, Aggravated criminal sodomy, Aggravated indecent liberties, Sexual exploitation of a child, Electronic solicitation of a child, Kidnapping, Aggravated intimidation of a witness and Unlawful sexual relations, according to Saline County Sheriff’s Lieutenant Michael Ascher.

McEachin was employed at St. Francis Ministries, 5097 W. Cloud in Salina, until early May 2019 when the investigation began.

The alleged incidents involving four girls — ages 14 through 17 — who were in the care of St. Francis Ministries occurred in early May.

McEachin was only employed at St. Francis Ministries for four to five months, according to Ascher.

In a statement on the case, Saint Francis Ministries said, they are aware that law enforcement officials have launched an investigation into allegations of professional misconduct by a former staff member of our Salina West facility. We are cooperating fully with the official investigation, as well as conducting our own internal review.

Saint Francis goes to great lengths to hire highly qualified staff and provide ongoing training and supervision. Every employee undergoes a thorough background check by law enforcement, as well as a background check conducted by our staff. In this case, background checks produced no red flags that would have precluded this staff member’s employment.

“The safety and well-being of all the youth in our care is paramount, and we take every allegation very seriously,” said The Very Reverend Robert N, Smith, Dean, President and CEO of Saint Francis Ministries. “We continue to work with the youth in this case to ensure any physical, emotional and spiritual needs are being met. We have already taken steps to reinforce our training procedures and protocols with staff to prevent any future allegations of this nature.”

 

MONTGOMERY COUNTY – The Kansas Bureau of Investigation (KBI) is conducting a death investigation after a suspect identified as Caleb M. O’Donnell, 32, Coffeyville, drowned in the Verdigris River during a police pursuit on Friday afternoon.

According to a KBI media release, just after 1:30p.m. Friday, the Coffeyville Police Dept. requested KBI assistance to investigate a drowning that occurred following a police pursuit.

Preliminary information suggests that on Aug. 16 at approximately 12:20 p.m., the South Coffeyville, Okla. Police Department received a call from a citizen who spotted an ATV that had been reported stolen from the Montgomery County Fair on Thursday night.

The ATV was first observed in Kansas, headed South on U.S. Highway 169 toward the Oklahoma border. An officer from the South Coffeyville Police Department began pursuing the ATV at a distance, and authorities from Kansas were notified. The officer saw the ATV turn north near 500 E. 1400 Rd., and travel through a field toward the Verdigris River.  Once the officer caught up, he discovered that the driver of the ATV later identified as O’Donnell had crashed into a tree. The officer then spotted the man struggling in the nearby Verdigris River.

The Coffeyville Police Department, the Coffeyville Fire Department, and the Montgomery County Sheriff’s Office responded to the scene.

Authorities threw ropes to him to try to help him. An officer from the Coffeyville Police Department, and a member of the Coffeyville Fire Department entered the water and tried to rescue the O’Donnell but were unsuccessful.  He was pronounced dead at the scene.

O’Donnell had two previous drug convictions, according to the Kansas Department of Corrections.

ANDOVER, Kan. (AP) — A Kansas police dog named Thor has died just a few weeks before he was to retire.

The Andover Police Department said that officers will wear black armbands through Saturday in honor of the Belgian Malinois. He had a brief illness and died over the weekend, just short of his 10th birthday. Thor was trained to detect drugs, as well as in tracking and trailing. He often went to schools and community events to perform demonstrations.

Chief Mike Keller described Thor in the post as a “phenomenal dog.” A memorial event also is planned for next month at a park.

SHAWNEE COUNTY — A Kansas teen faces up to 54 years in prison after entering a plea for the fatal shooting of a man during a drug deal, according to a Shawnee County District Attorney Michael Kagay.

On Friday, 19-year-old Brandon Gayer entered a plea to intentional second-degree murder of  20-year-old Gianna Noriega.

In August of 2018, police were dispatched to 431 SW Taylor Street in Topeka in reference to a shooting incident. At the scene, officers located Noriega suffering from multiple gunshot wounds. He was transported to a local hospital where he was pronounced dead. The shooting occurred during a drug transaction, according to Kagay.  The subsequent investigation led to the arrest of Gayer and a second suspect, Isaiah James Calhoun.

In April, Calhoun entered a plea to intentional second degree murder and was sentenced to 20-years in prison, according to Kagay.

Gayer is scheduled for sentencing on September 20. He faces a prison sentence of between 147 and 653 months, depending upon his criminal history, according to Kagay.