NEWS RELEASE

Eric Melgren, U.S. Attorney

Contact: Jim Cross

(316) 269-6481

FOR IMMEDIATE RELEASE

Headquarters
1200 Epic Center
301 N. Main
Wichita, Kansas 67202
(316)269-6481
FAX (316)269-6484

July 27, 2005

INCOME TAX FRAUD, EMBEZZLEMENT CASES INDICTED BY WICHITA GRAND JURY

NEW DEFENDANT ADDED TO CASE OF INSULIN THEFT FROM ARMY PHARMACIES

WICHITA, KAN. – United States Attorney Eric Melgren announced that a total of seven people were indicted July 26, 2005, by a federal grand jury in Wichita, Kan. Those indicted include:

Beatrice Sally Ybarra, Dodge City, Kan., who is charged with six counts of preparing and filing false income tax returns and seven counts of making false claims against the Untied States.

According to the indictment, Ybarra prepared federal tax returns for individuals. She received fees ranging from $50 to $600 for preparing the returns. During the years 1999, 2000 and 2001 she aided and assisted the preparation of numerous 1040A forms, 1040 forms and Individual Income Tax Returns forms for clients that contained false information. In addition, she requested tax refunds by assuming the identity of other people and filing fraudulent income tax returns under those assumed identities. The crimes are alleged to have occurred during 2001 and 2002 in Dodge City, Kan.

If convicted, she faces a maximum penalty of three years in federal prison and a fine up to $100,000 on each count of filing false income tax returns; and a maximum penalty of five years in federal prison and a fine up to $250,000 on each count of making false claims against the United States. The Internal Revenue Service investigated the case.

Sherri L. Nickelson, 50, Byers, Kan., who is charged with 20 counts of making forged securities. According to the indictment, Nickelson was a bookkeeper for D&R Trucking, an over the road trucking company in Pratt, Kan. Her husband, Terry Nickelson, also worked for the company. After Sherri Nickelson quit working at D&T Trucking in March 2003, an auditor determined that beginning as early as 1995 and continuing through 2003 she issued unauthorized company checks to herself, her husband, her son and her creditors. Analysis of the books revealed she issued a total of $93,924 in unauthorized checks. The crimes are alleged to have occurred during 2000 and 2001 in Pratt, Kan.

If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,0000 on each count. The U.S. Postal Inspection Service investigated the case.

Rashad Morton, 30, Tuscon, Ariz., who is charged with one count of conspiracy to commit an offense against the United States by transporting stolen goods in interstate commerce; and one count of conspiracy to commit an offense against the United States by stealing insulin and insulin strips from the United States Army. This superceding indictment adds Morton to the list of defendants who already have been charged in the case, including former Army pharmacist Ronald A. Ausberry, who were first indicted June 23, 2004. In a separate count, the government seeks the forfeiture of more than $2 million in cash, as well as real estate, that the conspirators are alleged to have derived from their crimes. Ausberry, and his wife, Sabrina, are set for sentencing Nov. 28, 2005.

According to the indictment, Ausberry recruited Morton to receive insulin and insulin strips stolen from military post pharmacies. Morton received the stolen goods at his residence in Tuscon and shipped them to buyers in Florida. He also deposited money from the sale of the stolen goods into the personal bank account of Sabrina Ausberry.

If convicted, Morton faces a maximum penalty of five years and a fine up to $250,000 on each count. The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Alan Metzger is prosecuting.

Randall Lee Dickinson, 47, Pittsburg, Kan., who is charged with two counts of making false identification documents; two counts of making counterfeit currency; one count of possessing a computer with intent to produce false identification documents; one count of possessing an image of U.S. currency with the intent to commit fraud; and one count of possessing five or more false identification documents. In a separate count, the government seeks the forfeiture of five hard drives that Dickinson is alleged to have used to commit the offenses. The crimes are alleged to have occurred during January, July and September 2004 in Crawford County, Kan.

If convicted, he faces a maximum penalty of 15 years in federal prison and a fine up to $250,000 on each of the counts of making false identification documents, possessing a computer with intent to produce false identification documents and possessing five or more false identification documents. The maximum penalty for each count of making counterfeit currency is 20 years in federal prison and a fine up to $250,000. The maximum penalty for possessing an image of U.S. currency with intent to commit fraud is 25 years in federal prison and a fine up to $250,000. The U.S. Secret Service investigated the case. Special Assistant U.S. Attorney William Mott is prosecuting.

Pablo Alberto Jiminez-Garcia, 39, who is not a United States citizen, and who is charged with one count of possession with intent to distribute approximately 25 kilograms of cocaine; one count of illegally entering the United States; and one count of traveling in interstate commerce to facilitate the distribution of cocaine. The crimes are alleged to have occurred July 13, 2005, in Trego County, Kan.

If convicted, he faces a maximum penalty of not less than 10 years and not more than life in federal prison, as well as a fine up to $4 million, on the drug possession charge; 10 years and a fine up to $250,000 on the illegal reentry charge; and five years and a fine up to $250,000 on the charge of interstate travel to facilitate drug trafficking. The Drug Enforcement Administration investigated the case. Special Assistant U.S. Attorney William Mott is prosecuting.

Hector Salinas-Valenciano, 41, who is not a U.S. citizen, and who is charged with illegally reentering the United States after being convicted of an aggravated felony and deported. He was found in Wichita, Kan., July 12, 2005.

If convicted, he faces a maximum penalty of 20 years in federal prison, without parole, and a fine up to $250,000. Immigration and Customs Enforcement investigated the case. Assistant U.S. Attorney Brent Anderson is prosecuting.

James E. Patrick, 39, Wichita, Kan., who is charged with three counts of illegally possessing a firearm after a felony conviction. The crimes are alleged to have occurred March 18, 2005, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Blair Watson is prosecuting.

As in any criminal case, a person is presumed not guilty until and unless proven guilty. The Indictments filed merely contain allegations of criminal conduct.

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