TOPEKA, KAN. – A federal judge has found former Kansas City builder F. Jeffrey Miller violated the terms of his release from federal prison after hearing evidence Miller was involved in a new real estate scam, U.S. Attorney Barry Grissom said Monday in a media release.

In a 16-page order dated Nov. 26, U.S. District Judge Julie A. Robinson cited evidence that Miller lied to his probation officer about his involvement with his son, Brandon, in a company called Tri-States Holding, LLC (TSH). She cited “substantial evidence about the fraudulent practices and transactions” by the company.

Miller, 53, will remain in custody awaiting sentencing. Miller was convicted by a jury of conspiracy to commit bank fraud, money laundering and criminal contempt. In August 2012, he was sentenced to 72 months in federal prison. He began supervised release Jan. 10, 2014.

During sentencing hearings, prosecutors submitted evidence that Miller began planning the new business while he was in prison. He formed the new company with his 23-year-old son, Brandon. Although Brandon Miller was represented as the owner, his father controlled the company. The Millers claimed to be in business to buy, refurbish and sell houses. In fact, Judge Robinson said in her order, the business was engaged in a “contract for deed scam.”

The company purchased more than 40 houses at Jackson County, Mo., tax sales and then advertised the houses for sale to low-income people in the urban core of Kansas City. The company advertised home ownership for just $500 down, sweat equity of no more than $2,000 in the form of cosmetic repairs including painting and clean up, and then monthly payments of $399. The buyers signed contracts for purchase prices in the $35,000 range.

Prosecutors presented evidence the company failed to complete promised repairs, performing shoddy repairs or virtually no repairs at all and then harassed and threatened buyers who ceased to make payments.

Judge Robinson ruled Miller violated four conditions of his supervised release by:

Controlling the new company even though he was prohibited from working in any capacity involving authority in financial matters.
Telling his probation officer that that he was a mere laborer at the new company when in fact he controlled the company.
Making false monthly reports to the probation office that he was not committing any federal crimes.
Making threats of bodily harm to a woman who purchased a house from the new company.
Miller is scheduled for sentencing Dec. 15 in U.S. District Court in Topeka.

By Bryan Thompson, KPR

TOPEKA — A battle over air pollution from power plants is headed for the U.S. Supreme Court.

Kansas and 20 other states contend the Environmental Protection Agency should have considered the costs of a 2011 rule, which requires coal-fired power plants to install new equipment to remove mercury and other toxins from their exhaust.

An appeals court held that the EPA didn’t have to consider the cost. The lower court ruling includes the following finding:

“EPA has explained why it concluded costs were not part of the ‘appropriate and necessary’ determination, and given Congress’s choice to leave the factors entering into that determination to EPA, petitioners, and our dissenting colleague, fail to demonstrate that EPA’s considered judgment about the factors to be considered was unlawful … and EPA did all that Congress required of it.”

However, the Supreme Court has agreed to hear the states’ challenge.

During a teleconference last week, EPA Administrator Gina McCarthy said it’s a very narrow challenge, and one the agency expects to win.

“Next year is when the compliance comes around,” McCarthy said. “Folks are already actively working on that, and we certainly don’t expect those reductions to be delayed in any way.”

Kansas Attorney General Derek Schmidt said the regulation will lead to higher costs for electricity.

“The EPA just flat ignored the cost of its new regulation,” Schmidt said. “In the real world, where Kansas homeowners and businesses live, the cost of electricity is always a relevant part of making decisions. The EPA cannot possibly have concluded that the benefits of its new regulation outweigh the costs, since it didn’t weigh the costs at all. I’m encouraged that the Supreme Court has agreed to hear the states’ arguments that the EPA’s actions were unlawful.”

The case under appeal is Michigan v. EPA. Schmidt said oral arguments will be scheduled later this term, with a decision expected by June.

WASHINGTON (AP) — The National Highway Traffic Safety Administration says it is investigating whether Graco took too long to report a safety defect in its child car seats.

Graco Children’s Products Inc., a division of Atlanta-based Newell Rubbermaid Inc., recalled more than six million car seats this year because their buckles could get stuck. That could put a child’s life at risk in an emergency. It is the largest child seat recall in U.S. history.

Federal rules require a manufacturer to report a safety defect within five days of becoming aware of it. If the investigation finds the company failed to report the defect in a timely manner, the company could face up to $35 million in fines.

A Graco representative could not be reached immediately for comment Monday.

JEFFERSON CITY (AP) – Missouri Gov. Jay Nixon now says a special legislative session will not be necessary to pay for the public safety response to protests in the St. Louis area.

Nixon’s decision Monday came after legislative leaders suggested he could use existing budget authority to pay National Guard and Missouri State Highway Patrol officers who have been on duty.

The governor said Friday night that he planned to call a special session because costs appeared on track to exceed what was allowed in the budget.

The governor activated the National Guard because of protests over a grand jury’s decision not to indict Ferguson police officer Darren Wilson for the Aug. 9 fatal shooting of 18-year-old Michael Brown. Protesters set fires and looted stores after the decision was announced.

JEFFERSON CITY (AP) – Missouri Gov. Jay Nixon has reversed plans to cut the amount of money paid by the state to blind residents.

Nixon said he ordered the Department of Social Services on Monday to drop plans to reduce the benefits paid under the blind pension program.

The St. Louis Post-Dispatch reported earlier Monday that the department had told all 3,847 people receiving checks through the program to expect a $33-a-month reduction beginning in January.

The department had said the cuts were necessary because payments were exceeding the property tax revenues collected by the fund.

Nixon said he would instead ask the Legislature to approve a supplemental budget appropriation for the program when it convenes in January.

TOPEKA, Kan. (AP) — Democrats in the Kansas House have elevated a Kansas City lawmaker who had been their assistant minority leader to their top leadership position.

Rep. Tom Burroughs won the minority leader’s job Monday in a 17-11 vote over Rep. Jim Ward of Wichita.

Democratic House members and members-elect had to pick a new minority leader for 2015 and 2016 because Minority Leader Paul Davis gave up his House seat to run unsuccessfully for governor.

Veteran Rep. Tom Sawyer of Wichita said the outcome was a vote for the status quo because Burroughs was a part of Davis’ team.

Sawyer also said Democrats believed Burroughs worked hard this year at fundraising and recruiting candidates.

Some lawmakers and legislative aides saw Ward as likely to be more confrontational with Republicans than Davis was.

WASHINGTON (AP) — The FBI is advising current and former members of the military to review their social media accounts to avoid posts that might attract attention from the group calling itself the Islamic State and its supporters.

A new bulletin from the FBI and the Department of Homeland Security notes that the Islamic State group already has publicly encouraged attacks against law enforcement and military service members.

The FBI says it has information suggesting the Islamic State is looking for “like-minded” individuals in the United States who would be willing to carry out attacks.

The bulletin, which was reviewed by The Associated Press, cites the October attack by a gunman who killed a soldier at Canada’s national war memorial and then stormed Parliament. The bulletin says such attacks might embolden violent extremists.