Former Christian County sheriff sentenced

Following a multiyear embezzlement and money-laundering scheme, a former Christian County sheriff got exactly what he agreed to.

Joey Kyle, 54, of Ozark, was sentenced Feb. 25 by U.S. District Judge Beth Phillips to one year and one day in federal prison and ordered to pay $50,290 in restitution to the county and forfeit $71,640 to the government, representing the proceeds he received from his criminal conduct.

Kyle pleaded guilty May 20, 2015, immediately resigning his post and agreeing to his current sentence.

The former sheriff also must disclose and surrender any and all property purchased with county funds, including firearms, ammunition, vehicles, equipment, meals-ready-to-eat and other supplies, according to a news release from the office of Tammy Dickinson, U.S. attorney for the Western District of Missouri.

While Kyle’s saga may be wrapping up, the legal battle still continues for his two co-conspirators: Stephen Eidson, with whom Kyle embezzled county funds, and a political supporter only identified as “Subject No. 2” for laundering the proceeds of an investment fraud scheme.

Embezzlement fallout
Eidson, owner of Nixa-based EDI Plus LLC, was not charged in relation to Kyle’s theft of public funds, but has entered into a pretrial diversion agreement, acknowledging his role in aiding and abetting the former sheriff.

According to the release, EDI was awarded a county contract to provide the sheriff’s department equipment from 2011 to 2014. However, Kyle received cash from EDI for his personal use and then submitted fraudulent requisitions for goods and services. In total, Kyle submitted 22 fraudulent invoices and purchase orders on behalf of EDI between Jan. 1, 2011, and Oct. 14, 2014.

Essentially, Christian County taxpayers repaid EDI for the personal funds Eidson provided to Kyle.

Under the terms of Eidson’s pretrial diversion agreement, he must surrender his federal firearms license no later than June 30 and may not become a federal firearms licensee in the future. Eidson also must publicly apologize for the theft of public funds and complete 100 hours of community service within Christian County, according to the release.

Prosecution will be deferred for one year if Eidson abides by the conditions.

Money-laundering lingers
Subject No. 2’s story still is ongoing. According to the release, Kyle also admitted he received $21,350 from the undisclosed person for his role in promoting an investment fraud scheme.

According to Kyle’s plea agreement, Subject No. 2 owned and operated various companies from January 2008 to October 2014. Subject No. 2 solicited Kyle to assist him as a promoter of the scheme, taking advantage of the authority and prestige of Kyle’s position as sheriff. Kyle referred potential investors, distributed promotional materials, served as a personal reference and recommended that victims invest money in Subject No. 2’s companies.
 
In reality, Kyle did not invest personal funds in the companies. Instead, Subject No. 2 gave Kyle 50,000 shares in one company, normally sold to investors for $1 per share.
 
To launder the money, in 2011 Kyle founded Five Rivers Management LLC as a law enforcement training company. According to the plea agreement, Kyle deposited money from Subject No. 2 into the company’s bank account to conceal the payment’s source and to make them appear as receipts from the training company. During a two-year span between June 2012 and January 2014, Subject No. 2 received investment funds totaling approximately $952,670.

In the plea agreement, Kyle said he believed the companies were legitimately trying to bring products to market, but admitted he knew checks written to Five Rivers were the proceeds of some form of unlawful activity, adding he deliberately closed his eyes to the fraud.

Related case
Marty Brickey, a former Christian County reserve deputy sheriff, was charged in May 2015 in a 30-count federal indictment of wire fraud, money laundering and failing to pay employment taxes. The charges amount to a $14.5 million investment fraud scheme, according to Springfield Business Journal archives.

Brickey owned and operated companies that produced, marketed and sold video games. In the indictment, prosecutors accused Brickey of defrauding investors by using their funds for personal expenses unrelated to the development or marketing of videos games. None of his companies brought a video game to market, and the total revenue to the businesses was roughly $2,281, according to the indictment.

While never officially named as Subject No. 2, by July, attorneys Carver, Cantin & Grantham LLC sought to distance Brickey from Kyle. In a statement, Thomas Carver and Shane Cantin said the federal government inferred Kyle was involved in fundraising efforts for Brickey’s companies. However, Kyle owes Brickey “tens of thousands” of dollars, according to the attorneys.

Originally set for trial last September, the trial has been postponed until April 2017. If convicted, the 44-year-old deputy faces up to 360 years in prison and fines.

Christian County outcome
After being elected in 2008 and again in 2012, Kyle’s resignation last May set a chain of events into motion.

The Christian County Commission interviewed seven candidates for the interim position May 28, choosing former sheriff Dwight McNiel for the role on June 1, according to SBJ archives.

A special election was held Aug. 4, 2015, where voters elected Republican county coroner and former sheriff’s deputy Brad Cole with 32.8 percent of the vote.

By December, Gov. Jay Nixon appointed three-year deputy coroner Mandi Armitage to fill Cole’s post.