Kingsley dog breeder pleads guilty to making false statements in federal court

A Kingsley man named twice to the Humane Society of the United State's 'Horrible Hundred” list of puppy mill breeders across the country, pleaded guilty Wednesday for not disclosing financial information to the federal government, to which he owes thousands of dollars for violating federal animal protection regulations.

Gerhard L. Felts, also known as Gary Felts, 61, operator of Black Diamond Kennel, pleaded guilty in U.S. District Court in Cedar Rapids to one count of making false statements to the government in connection with a civil judgment of $18,938 awarded to the government in 2010. He faces up to five years in federal prison.

The civil judgment against Felts and Black Diamond Kennel was granted after the U.S. Department of Agriculture's Animal and Plant Health Inspection Service claimed Felts had several Animal Welfare Act violations, including not providing adequate veterinary care, failure to identify all dogs 16 weeks or older kept for breeding and failing to maintain records of animals at the kennel.

The inspection service also found other violations regarding poor and dirty housing for animals and unsafe conditions in the kennel areas, according to court documents.

U.S. District Judge Mark Bennett granted a summary judgment in January 2012 for the government.

As of 2012, with interest and penalties, Felts owed $19,475, according to court records. There are no public court documents stating how much he may already have paid.

As part of efforts to collect the debt, Felts was required to provide yearly financial reports in order to determine reasonable payments, according to the plea agreement. During the hearing Wednesday, Felts admitted he failed to disclose a checking account he opened in April 2011, a savings account opened in April 2013 and workers' compensation payments he received for $25,000 in April 2013.

Felts also admitted that he knew the financial statements he submitted in 2012, 2013 and 2014 to the government were false.

As part of the plea, Felts is waiving his right to appeal and two other counts of making false statements are to be dismissed.

In addition to the possible prison time, Felts faces up to a $250,000 fine and up to three years of supervised release following any prison time.

Court documents show the administrative decision and civil judgment resulted after USDA found Animal Welfare Act violations at Black Diamond during annual inspections from 2006 to 2009.

An IowaWatch review of USDA inspection reports in 2014, showed Felts also received violations for rusted surfaces and dirt and grime in facilities that house animals in 2013 and 2014, as well as not having adequate records of the dogs in 2014.

Black Diamond Kennels was named to the Humane Society's 'Horrible Hundred” list in 2013 and 2015.

A sentencing date has not yet been set.