Indictment: Newton Couple Ran Moonshine Still in Basement

RYAN PENNER, 41, and JENNIFER PENNER, 37, both of Newton, Kansas, are charged with running a full-scale moonshine operation out of the basement of their home at 1000 block of E. 7th Street—cooking, selling, and evading federal and state excise taxes, according to a federal indictment unsealed Tuesday in Wichita.

The couple faces one count of possession of an unregistered still, one count of unlawful production of distilled spirits, and one count of failing to be bonded as a distiller. Prosecutors allege the operation was active for months, producing untaxed, high-proof liquor sold directly to buyers in the community—under the radar and under the stairs.

According to the U.S. Attorney’s Office, the investigation began in August when Newton Police received credible tips about home-distilled spirits being sold from the residence. Undercover officers made multiple purchases, paying $20 per quart of raw, unregulated moonshine—bootlegged booze, straight from a still cobbled together from a 15.5-gallon beer keg, metal legs, and copper tubing seized during a warrant execution.

The Penner operation wasn’t backyard hobbyist hooch—it was a deliberate, concealed enterprise. Federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kansas Alcoholic Beverage Control worked alongside local police to dismantle the setup, which violated both federal tax laws and controlled substance regulations.

If convicted on all counts, RYAN and JENNIFER PENNER each face up to five years in federal prison and fines up to $250,000. The case is being prosecuted by Assistant U.S. Attorney Matt Treaster. A trial date has not been set.

As with all defendants, the Penners are presumed innocent until proven guilty. The indictment contains allegations only. Other unrelated indictments were also filed this week, including cases involving wire fraud, firearm possession, and postal theft—but the moonshine case reeks of a bygone era, resurrected in a quiet Newton basement.