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McClelland man pleads guilty to tax evasion

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December 21st, 2017 by Ric Hanson

Council Bluffs, Iowa – A McClelland, Iowa, businessman pleaded guilty Thursday (today), to tax evasion. According to documents and information provided to the court, 49-year old Michael Collins, was part-owner of a real-estate development firm that earned significant income in 2006. As a result of his ownership in the company, Collins received approximately $289,000 in income that year, but did not report it on his individual income tax return.
In 2008, the Internal Revenue Service (IRS) contacted Collins regarding the unreported income and Collins filed an amended return reporting the income and reflecting a tax due of more than $100,000. However, Collins did not pay the tax liability.
From 2006 through the present, Collins also operated an excavating and trucking company that generated more than $5.5 million in gross receipts. To evade payment of his outstanding tax liability, Collins registered the business as well as its bank
accounts in the name of nominees, used nominee entities to conceal over $5 million in gross receipts from the business, filed fraudulent corporate tax returns that listed nominees as the owners of the business and paid his personal expenses using the business’ unreported income. Collins also filed fraudulent documents with the IRS claiming to have no gross business receipts for the company and falsely told IRS employees that his only source of income was unemployment benefits. He admitted to causing a tax loss of more than $250,000.
Sentencing is scheduled for May 11, 2018, in United States District Court. Collins faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties.

Cass County Supervisors discuss Health Insurance for County employees and elected officials’ compensation

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December 21st, 2017 by Ric Hanson

The Cass County Board of Supervisors, Wednesday, reviewed the renewal rates for the County’s full funded health insurance program (member of Iowa State Association of Counties [ISAC] Group Health Program).  Auditor Dale Sunderman said the rates will go into effect July 1, 2018.  The county’s plan base rate has increased 11.61%.  The county also buys down the full funded plan deductibles and out of pocket to a lower deductible and out of pocket amount using a third party administrator (TPA).  The board decided to offer flexible spending accounts beginning January 1, 2018 using the same TPA.  The board proposed increasing the employee contribution towards premium by $30 per month.

And, the County Compensation Board met December 12, 2017 and submitted its recommendations for compensation of Cass County’s elected officers for the fiscal year beginning July 1, 2018.  The recommended annual compensation schedule was: Auditor, Recorder and Treasurer $60,000; Sheriff $79,000; full time county attorney $100,000; and each supervisor $30,000.  The Board of Supervisors officially receive and act upon the recommendations at the public hearing on the county budget in March of 2018.  At the hearing, the recommendations are reviewed and the board determines whether or not to reduce the recommended increases and determine the final compensation schedule which shall not exceed the recommendations.

Survey suggests economy remains slow in rural areas

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December 21st, 2017 by Ric Hanson

OMAHA, Neb. (AP) — A new monthly survey of bankers suggests the economy remains weak in rural parts of 10 Plains and Western states, but it improved slightly. The overall economic index for the region grew to 47.8 in December from 44.7 in November, but any score below 50 suggests a shrinking economy in the months ahead. Creighton University economist Ernie Goss says low commodity prices and concerns about trade continue to weigh on the economy in rural areas.

Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming were surveyed.

Denison man injured in single-vehicle accident

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December 21st, 2017 by Ric Hanson

The Iowa State Patrol reports a man from Denison was injured during a single-vehicle accident Wednesday afternoon, about two-miles west of Vail, in Crawford County. 68-year old Donald Ladehoff was traveling west on Highway 30 at around 2:20-p.m., when he lost control of the 2010 Hyundai Elantra he was driving. The car went off the road to the left and came to rest in the south ditch. Ladehoff, who was wearing his seat belt, was transported by Crawford County Ambulance to the Crawford County Hospital. The accident remains under investigation.

The Crawford County Sheriff’s Office along with Vail EMT & Fire assisted at the scene.

Council Bluffs bank robbed Thursday morning

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December 21st, 2017 by Ric Hanson

Police in Council Bluffs responded at around 8:47-a.m. today (Thursday), to a report of an armed robbery at the Frontier Bank, located at 940 Valley View Drive. Upon arrival officers spoke to employees of the business, who told officer that two male suspects entered the bank, one armed with a handgun and demanded money. Both suspects were wearing masks. Following the robbery, in which a yet to be determined amount of cash was taken, the two suspects fled the area in a White Pontiac Grand Am.

While checking the area, officers located the suspect vehicle abandoned in apartment complex lot nearby. The vehicle had been recently reported stolen in Omaha. The two unknown suspects were not located. The robbery is currently under investigation by members of the Criminal Investigation Division. Anyone having possible information is urged to contact police at (712) 328-4728 or Crime Stoppers at (712) 328-7867.

Audit: University of Iowa professor misused nearly $100,000

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December 21st, 2017 by Ric Hanson

DES MOINES, Iowa (AP) — A state audit says that a University of Iowa professor misused nearly $100,000 on hosting unauthorized conferences between 2011 and 2017. Iowa State Auditor Mary Mosiman said Thursday that physics professor Michael Flatte improperly used his university procurement card to pay for $47,203.81 in expenses for three conferences. He also collected $44,161.69 in registration fees and used most of that for the conferences.

The University of Iowa says it identified Flatte’s unauthorized transactions in November 2016 and requested the state audit. University officials are reviewing potential disciplinary action.

Eastern IA man arrested on Union County warrant

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December 21st, 2017 by Ric Hanson

The Union County Sheriff’s Office reports an eastern Iowa man was arrested Wednesday evening on a Union County warrant. 19-year old Brazon Jordan Davenport, of Tama, was arrested on a warrant for failure to appear on the original charge of domestic abuse assault. Davenport was being held in the Union County Jail on $2,000 bond.

Bridge replacement project in Shelby County

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December 21st, 2017 by Ric Hanson

The Shelby County Emergency Management Agency reports Mulberry Loop in Shelby County, is currently closed for a bridge replacement with low water crossing. The bridge is in the 800 block of Mulberry Loop in Fairview Township Section 23. The bridge has been removed and will be replaced with a low water crossing. Work will continue as weather conditions permit.

Area affected by closure

Riverside School bus deaths ruled accidental

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December 21st, 2017 by Ric Hanson

The Iowa State Medical Examiner’s Office reports the two victims of a Riverside School bus fire on December 12th, died of smoke and soot inhalation coupled with thermal injuries. The deaths of a passenger, 16-year old Megan Klindt, and the driver, 74-year old Donnie Hendricks, have been ruled accidental. The fire broke broke out around 7 a.m. after the vehicle backed out of a farm driveway and entered a ditch across the road.

Deputies arrived on scene around 7:20 a.m. but were unable to board the bus because it was fully engulfed in flames. Fire department crews from Carson and Oakland extinguished the fire. The farmstead was the first scheduled stop on the bus route. No one else was on board.

Ford, Mazda recall pickups a 2nd time for air bag problem

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December 21st, 2017 by Ric Hanson

DETROIT (AP) — Ford and Mazda are recalling more than 380,000 older small pickup trucks for a second time to replace Takata air bag inflators that can explode and hurl shrapnel.
The recalls cover driver and passenger inflators in certain 2004 to 2006 Ford Ranger and Mazda B-Series trucks made by Ford. Takata uses ammonium nitrate to create a small explosion that inflates air bags. But the chemical can deteriorate over time and burn too fast, blowing apart a metal canister. At least 20 people have been killed worldwide.

The trucks were recalled in 2015 and 2016 to replace inflators with newer ones as a temporary fix. Under the latest recalls, inflators will be swapped for ones that don’t use ammonium nitrate.
Owners will be notified starting later this month.