District of Minnesota
Press releases recorded for this federal judicial district.
Chronic Disease Management Provider to Pay $14.9M to Resolve Alleged False ClaimsRead the Press Release
MINNEAPOLIS – Bluestone Physician Services of Florida LLC, Bluestone Physician Services, P.A. and Bluestone National LLC, operating in Florida, Minnesota and Wisconsin, respectively, have agreed to pay $14,902,000 to resolve allegations that they knowingly submitted claims for certain Evaluation and Management (E&M) codes for services related to the management of chronic care patients in assisted living and other care facilities that were not provided in conformity with applicable Medicare, Medicaid and TRICARE requirements.
“Improperly billing federal health care programs depletes valuable government resources used to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue health care providers that defraud the taxpayers by knowingly submitting inflated claims.”
The settlement resolves allegations that, during the period from Jan. 1, 2015, through Dec. 31, 2019, Bluestone knowingly submitted claims for two E&M codes, the domiciliary rest home visit code for established patients (99337) and the chronic care management code (99490), that did not support the level of service provided. The federal government’s share of the settlement is $13,842,482 and $1,059,518 will be paid to the States of Florida and Minnesota.
“Fraudulent billing undermines the integrity of government healthcare programs and diminishes legitimate services and resources for Minnesotans,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “Healthcare companies that institute a practice of upcoding and unnecessary billing will be held accountable for their misconduct.”
“The submission of false claims to Medicare for chronic care services will not be tolerated in the Middle District of Florida,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This resolution sends a message to the provider community and to our district that we will actively investigate and prosecute this kind of conduct whenever it appears.”
“When health care providers submit false claims to taxpayer-funded federal health care programs, including inappropriately inflating claims to boost profits, the public’s trust in our nation’s medical providers and the integrity of federal health care programs are put at risk," said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office. “We will continue to work together with our law enforcement partners to ensure that those who engage in conduct as alleged in this case are held accountable. Furthermore, the OIG’s five-year compliance agreement is designed to ensure that the alleged behavior will not be repeated.”
In connection with the settlement, Bluestone has entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG, which requires Bluestone, among other obligations, to establish and maintain a compliance program meeting certain requirements and to submit to an Independent Review Organization’s review of Bluestone’s Medicare claims to determine whether such claims were medically necessary, appropriately documented, and correctly coded.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lisa Loscalzo, the former General Manager for Bluestone’s Florida market. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Loscalzo v. Bluestone Physician Services of Florida, Bluestone Physician Services, P.A., Bluestone National, LLC et al., 20-cv-295-FtM-38NPM (M.D. Fla). The civil settlement also includes the resolution of related allegations investigated by the U.S. Attorney’s Office for the District of Minnesota. Ms. Loscalzo will receive $2,831,380 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of Minnesota and the Middle District of Florida, with assistance from HHS-OIG, the Defense Criminal Investigative Service and FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorneys Erin Colleran and Joanna Persio of the Civil Division’s Fraud Section, Assistant U.S. Attorneys Kristen E. Rau and Emily Peterson for the District of Minnesota and Assistant U.S. Attorney Kelley Howard-Allen for the Middle District of Florida handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Former Commercial Airline Pilot Convicted by Federal Jury of Tax CrimesRead the Press Release
MINNEAPOLIS – A federal jury found a former commercial airline pilot guilty of tax evasion, filing false tax returns, failing to file tax returns, and making false claims, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, Charles Randall Sorensen, 72, of Minnetonka, was a commercial airline pilot who retired in 2016. In January 2017, Sorensen filed a fraudulent tax return for the 2015 tax year, falsely claiming that he was entitled to a $55,365 tax refund. In reality, Sorensen owed more than $49,000 in income taxes that year. In March 2017, Sorensen filed a fraudulent tax return for the 2016 tax year, falsely claiming that he was entitled to a $123,370 tax refund. In reality, he owed more than $175,000 in taxes that year. The IRS conducted an audit of Sorensen’s 2015 and 2016 tax returns and found that Sorensen fraudulently received more than $150,000 in tax refunds to which he was not entitled and owed more than $290,000 in taxes, interest, and penalties for those tax years.
According to the evidence presented at trial, Sorensen refused to pay his tax debt and took steps to actively evade the IRS’s collection efforts by hiding his income and assets in bank accounts in the name of shell religious non-profits and by liquidating his retirement accounts and converting the funds into cryptocurrency. Sorensen also failed to file federal income tax returns for 2017, 2018, and 2019. Sorensen owes the United States more than $300,000.
Following a four-day trial before Chief Judge Patrick J. Schiltz in U.S. District Court, Sorensen was found guilty today on two counts of filing a false tax return, one count of tax evasion, three counts of failing to file a tax return, and one count of making a false claim. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by IRS – Criminal Investigations.
Assistant U.S. Attorneys Michael P. McBride and Campbell Warner tried the case.
Extradited Bloomington Fugitive Sentenced to 40 Years in Prison for Producing Sexually Explicit Images and Videos of MinorsRead the Press Release
ST. PAUL, Minn. – A Bloomington man has been sentenced to 480 months in prison, followed by a lifetime of supervised release, for attempted production and production of child pornography, receipt of child pornography, and enticement of a minor, announced U.S. Attorney Andrew M. Luger.
According to court documents, between October 2020 through March 2023, Ibrahim Ghassan Sleyman, 31, used Snapchat and other messaging apps to solicit sexually explicit material and sex acts from minor girls and boys, some as young as nine years old. Additionally, Sleyman groomed and enticed a minor victim to produce child pornography and engage in sexual activity with Sleyman by providing the minor with drugs and gifts. Once Sleyman became aware of law enforcement’s investigation, he fled to Abu Dhabi, United Arab Emirates (UAE), on September 6, 2022. While Sleyman was a fugitive in the UAE, he continued to use Snapchat to engage in sexually explicit conversations with minors in the United States, and he attempted to obstruct justice by contacting minor victims to influence their actions in the ongoing investigation.
On September 15, 2023—one year after Sleyman fled to the UAE—UAE authorities returned Sleyman to the United States. Upon his return, he was taken into federal custody by the FBI. To date, the United States has identified at least 22 minor victims who Sleyman solicited and used to produce and receive child pornography and attempted to entice to engage in unlawful sexual acts.
On December 14, 2023, Sleyman pleaded guilty to one count of attempted production and production of child pornography, one count of receipt of child pornography, and one count of enticement of a minor. As a part of his plea, Sleyman admitted to criminal conduct relating to 22 minor victims. He was sentenced today in U.S. District Court by Judge Donovan W. Frank, who remarked that he has presided over “hundreds of child pornography cases,” and that Sleyman’s case was “distinguishable” from many of those prior cases, in part, due to the severity of the offenses and hands-on sexual abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, Homeland Security Investigations, U.S. Customs and Border Protection, the Elk River Police Department, and the Pleasant Hill, Missouri Police Department, with assistance from the St. Paul Police Department. The Justice Department’s Office of International Affairs, the State Department, the Ministries of Justice and Interior of the United Arab Emirates, UAE Interpol, Abu Dhabi Airport Police and Abu Dhabi International Airport – Airport Security provided significant support and assistance in Sleyman’s extradition from the United Arab Emirates.
Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.
Twin Cities Man Pleads Guilty to a Robbery Spree of Gas StationsRead the Press Release
MINNEAPOLIS – A Twin Cities man has pleaded guilty to the robberies of five gas stations throughout the Twin Cities, announced United States Attorney Andrew M. Luger.
According to court documents, between June 26, 2023, and July 11, 2023, Mohamed Zaki Mohamed Elsayed, 28, participated in the robbery of five gas stations across the Twin Cities, including in Mounds View, Roseville, New Brighton, Fridley, and Eagan. On June 26, 2023, Elsayed aided and abetted the robbery of a gas station in Mounds View. Elsayed’s accomplice entered the gas station, approached the cashier, flashed what appeared to be a semiautomatic pistol, and demanded money from the cashier. The accomplice stole $354 from the business and fled the gas station to a vehicle where Elsayed was waiting.
According to court documents, over the following two weeks, Elsayed robbed four more gas stations. In each incident, Elsayed entered the business wearing a mask, he flashed a real-looking semiautomatic pistol at the cashier and demanded the business’s money. On July 13, 2023, law enforcement executed a search warrant at Elsayed’s residence and recovered a Glock replica airsoft handgun that Elsayed admitted to using in each of the gas station robberies.
Elsayed pleaded guilty today in U.S. District Court before Judge David S. Doty to five counts of Hobbs Act robbery. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Mounds View Police Department, the Roseville Police Department, the New Brighton Police Department, the Fridley Police Department, the Eagan Police Department, and the FBI.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Final Defendant Pleads Guilty to Nationwide Telemarketing Fraud Scheme Targeting EldersRead the Press Release
MINNEAPOLIS – A Texas man has pleaded guilty on the eve of trial to his role in a $4.8 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger.
According to court documents, Jeremy Wade Wilson, 42, of Fort Worth, Texas, owned and operated Publishers Elite, a Texas-based company involved in fraudulent magazine sales. From 2013 through 2019, Wilson ran a telemarketing call center in Arlington, Texas, where Wilson provided his telemarketers with scripts containing fraudulent sales pitches for use in defrauding victim-consumers out of hundreds or even thousands of dollars. Wilson knew that many of the consumers on these lists were elderly or otherwise susceptible to fraudulent and deceptive sales tactics. Nevertheless, Wilson directed his telemarketers to call the people on these lists and trick them, through a series of lies and misrepresentations, into signing up for expensive magazine subscription packages.
During the course of the scheme, Wilson and his company defrauded more than 14,000 victims across the United States, including more than 200 victims in Minnesota. Between 2013 and 2019, Wilson’s company received more than $4.8 million from victims of his scheme.
Wilson, who is the last of 64 defendants charged in the nationwide telemarketing fraud scheme, was scheduled for trial on May 29, 2024. Wilson pleaded guilty earlier today before Judge John R. Tunheim to six counts of wire fraud and SCAMS Act. A sentencing hearing is scheduled for September 26, 2024.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Joseph H. Thompson, Matthew S. Ebert, Harry M. Jacobs, Garrett S. Fields, Matthew C. Murphy, and Melinda A. Williams are prosecuting the case.
Federal Jury Finds Minneapolis Man Guilty of Kidnapping, Bank Fraud, and Aggravated Identity TheftRead the Press Release
ST. PAUL, Minn. – A federal jury found a Minneapolis man guilty of kidnapping, bank fraud, and identity theft after robbing two women at gunpoint and stealing from another, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial, on September 13, 2022, at approximately 7:30 a.m., Raphael Raymond Nunn, 52, approached a woman in Arden Hills who had just parked her vehicle. Nunn, who was wearing a mask, gloves, and carrying a handgun, forced the victim at gunpoint to drive him to an ATM in Minneapolis and withdraw cash for his own benefit. Nunn then ordered the victim to drive to Matthews Park, where he then ordered her to give him her keys so he could get away.
According to court documents, Nunn was later captured on surveillance videos from surrounding businesses and seen exiting the victim’s vehicle, removing his hood and mask, and entering a nearby corner grocery store. Four days later, Nunn returned to the store driving a vehicle registered in his name which led to the discovery of his address.
A search of his residence recovered evidence from the kidnapping and revealed Nunn had stolen from a second victim and robbed a third at gunpoint before fraudulently using the victims’ stolen credit cards to obtain money from their bank accounts.
Nunn was arrested on September 22, 2022, at his Minneapolis residence.
Following a four-day trial before Judge Eric C. Tostrud, Nunn was found guilty yesterday on one count of kidnapping, two counts of bank fraud, and two counts of aggravated identity theft. A sentencing hearing will be held at a later date.
This case is the result of an investigation conducted by the FBI, the Ramsey County Sheriff’s Office, Oak Park Police Department, and the Hudson Police Department.
Assistant U.S. Attorneys Albania Concepcion and Lauren O. Roso tried the case.
Dodge County Nurse Pleads Guilty to Opioid DiversionRead the Press Release
MINNEAPOLIS – A Dodge County woman has pleaded guilty to obtaining a controlled substance by fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, Jennifer Lee Garrison, 40, was employed as a post-anesthesia care nurse at a hospital. Garrison had access to controlled and uncontrolled substances stored within an automated dispensing cabinet (ADC). The ADC in Garrison’s unit stored multiple medicines, including oxycodone and oxybutynin. Beginning in August 2022, the defendant began diverting oxycodone pills for her own use instead of giving it to her patients. By July 2023, the defendant was diverting up to six oxycodone pills per day.
Garrison carried out her diversion scheme using two primary means. At times, patients were prescribed two oxycodone pills. The defendant would withdraw both pills from the ADC but would give the patient only one pill. The defendant would keep the other pill for her own use and falsified patient pain reports to cover up her scheme. On other occasions, Garrison would enter a transaction on the ADC for oxybutynin. When the drawer for oxybutynin opened, the defendant would remove an oxybutynin pill. She would then cancel the transaction on the ADC, making it appear that she had simply accessed the wrong drawer by accident. With the ADC still accessible, the defendant then opened a drawer for oxycodone and removed an oxycodone pill. The defendant kept the oxycodone pill for herself and gave the patient oxybutynin.
Garrison pleaded guilty yesterday in U.S. District Court before Judge Jerry W. Blackwell to one count of obtaining a controlled substance by fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the U.S. Food and Drug Administration and the Drug Enforcement Administration.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
Fridley Felon Pleads Guilty to Shooting 11-Year-Old on New Year’s DayRead the Press Release
MINNEAPOLIS – A Fridley man has pleaded guilty for possession of ammunition as a felon after firing multiple shots from an AR-style rifle, one of which struck an 11-year-old child in the face, announced U.S. Attorney Andrew M. Luger.
According to court documents, just after midnight on January 1, 2024, officers of the Minneapolis Police Department received a report of a shooting at a residence in north Minneapolis. When officers arrived at the scene a woman told them that shots had been fired outside the residence and a round had struck the woman’s 11-year-old child in the face. The minor victim was sitting in a second-story bedroom when they heard gunshots outside the residence at approximately midnight. The minor victim went to the window to observe when a round came through the window and hit them in the face.
According to court documents, officers obtained a Snapchat video of James William Turner, 44, that was filmed just prior to the shooting. The two-minute video showed Turner outside, near the victim’s residence, speaking angrily to the camera before panning it to show an AR-style rifle lying across the driver’s seat of a vehicle. A neighbor provided officers with a doorbell surveillance video that showed Turner fire multiple rounds in the direction of the victim’s bedroom window. Officers found eight live cartridges and 24 discharged cartridge casings throughout the boulevard, sidewalk, and yard.
Because Turner has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
Turner pleaded guilty today in U.S. District Court before Judge Ann D. Montgomery to one count of possession of ammunition as a felon.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department, with assistance from the Hennepin County Attorney’s Office.
Assistant U.S. Attorney Kristian C.S. Weir is prosecuting the case.
Two Minneapolis-Based Business Consultants Charged in $1 Million Pandemic Aid Fraud SchemeRead the Press Release
MINNEAPOLIS – Two Minneapolis-based business consultants have been indicted for defrauding COVID-19 pandemic aid programs of more than $1 million while serving as business advisors to Hennepin County, announced U.S. Attorney Andrew M. Luger.
“During the COVID-19 pandemic, at a time when small businesses were suffering deep economic losses, local and federal government agencies stepped in to provide support. These defendants saw this as an opportunity to defraud the aid programs by submitting phony invoices and applications for benefits,” said U.S. Attorney Andrew Luger. “I commend the skilled investigators and prosecutors who work diligently to hold accountable those who defraud the aid programs designed to support our small business community.”
According to court documents, beginning in 2020, through the present, Tezzaree El-Amin Champion, 27, and Marcus Alexander Hamilton, 27, devised and carried out a fraud scheme to obtain funds from a variety of federal, state, local, and private COVID-19 relief programs. Through their company, Futuristic Management Group LLC, a Minnesota-based small business consulting firm, the defendants submitted fraudulent applications for PPP loans, pandemic relief, and other funds on behalf of their small business clients and their own entities.
As part of the scheme, Champion, who was the founder and chief executive officer of Futuristic Management, and Hamilton, who was the chief operating officer, caused the consulting firm to enter into contracts with Hennepin County under a COVID-19 relief program called “Elevate Business,” also known as “Elevate Hennepin.” Elevate Business is a small business assistance program designed to provide local small businesses with no-cost marketing and website assistance. Under the contracts, Hennepin County agreed to pay Futuristic Management to provide technical assistance services to client businesses that were located in Hennepin County at no cost to the clients. Instead of abiding by the terms of the contracts, Champion and Hamilton billed Hennepin County for work not actually performed, and for work for which Champion and Hamilton were being paid by their clients, when the contracts required that Futuristic Management’s work be provided at no cost.
As part of the scheme, Champion and Hamilton also submitted fraudulent PPP and EIDL loan applications and Hennepin County Small Business Relief grant applications on behalf of their clients and their own entities. When clients received the loans and grants, Champion and Hamilton transferred and misappropriated a portion of the funds for themselves.
Also as part of the scheme, Champion intimidated clients by showing them a firearm and telling them he always carried a firearm. On April 26, 2023, law enforcement executed a search warrant at Champion’s residence in Andover. Inside the home, agents found $126,000 in U.S. currency in a locked safe, and a Ruger LCR .357 revolver. Because Champion has a prior felony conviction, he is prohibited from possessing firearms or ammunition at any time.
In total, Champion and Hamilton’s fraud resulted in losses of more than $1 million in COVID-19 pandemic aid and involved more than 100 fraudulent invoices and grant and loan applications.
Champion and Hamilton were charged with three counts of mail fraud, three counts of wire fraud, one count of theft of government money, and one count of engaging in a monetary transaction in property derived from specified unlawful activity. Champion was also charged with one count of possessing a firearm as a felon. The defendants made their initial appearances earlier today in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by IRS-Criminal Investigations, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department’s Special Crimes Investigations Division.
Assistant U.S. Attorneys Matthew D. Forbes and Joseph H. Thompson are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Man Sentenced to 25 Years in Prison for Producing Child Pornography over Social MediaRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 300 months in prison followed by 15 years of supervised release for coercing minors to produce child pornography over social media, announced U.S. Attorney Andrew M. Luger.
According to court documents, in 2019, Nelson Thomas Harner, 41, admitted to connecting with multiple minors on Instagram and Facebook and coercing them to engage in sexual activity for the purposes of producing child pornography. Harner also possessed numerous images and videos depicting child sexual abuse material.
On July 11, 2023, Harner pleaded guilty to one count of coercion and enticement. He was sentenced on May 15, 2024, in U.S. District Court by Judge Eric C. Tostrud.
This case is the result of an investigation conducted by the U.S. Marshals Service and the Minnesota Bureau of Criminal Apprehension.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney Esther Soria Mignanelli prosecuted the case.
Minneapolis Felon Sentenced to over Nine Years in Prison for Illegal Possession of Firearms and Facilitating Drug TraffickingRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 117 months in prison for the illegal possession of two firearms, and for using one of them in furtherance of drug trafficking, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 11, 2020, law enforcement officers observed a vehicle traveling at a high rate of speed on I-394 in Golden Valley, Minnesota. When police attempted to stop the vehicle, the driver, Dejavareah Marquise Brown, 26, fled from police at over 100 mph, jumped a median, went airborne, and shredded the front tire of the vehicle. Officers twice attempted to stop the vehicle with a PIT maneuver and ultimately disabled the vehicle, at which time Brown fled on foot across the highway. Police found Brown hiding behind a brick pillar at a nearby store and detected a strong odor of alcohol emanating from him. During a subsequent search of the vehicle, officers recovered a 9mm pistol with an extended high-capacity magazine loaded with 31 rounds and an additional 15 rounds of .380-caliber ammunition hidden in the trunk.
In March 2022, law enforcement received information that Brown was selling narcotics from his Minneapolis apartment and executed a search warrant. During the search, officers discovered a loaded .45-caliber pistol, a box of ammunition, 3500 M30 fentanyl pills, over 18 pounds of marijuana, over $650 cash, and miscellaneous drug paraphernalia inside the apartment.
Because Brown has a prior felony conviction, he is prohibited from lawfully possessing firearms or ammunition at any time.
On January 16, 2024, Brown pleaded guilty to two felon-in-possession counts, and to one count of possessing a firearm in furtherance of a drug-trafficking crime. He was sentenced today in U.S. District Court by Chief Judge Patrick J. Schiltz.
This case is the result of an investigation conducted by the Hennepin County Sheriff’s Office, Hennepin County Violent Offender Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Golden Valley Police Department.
Assistant U.S. Attorney Benjamin Bejar prosecuted the case.
Minneapolis Marketing Executive Charged with Fraud, Money Laundering in $1.5 Million Embezzlement SchemeRead the Press Release
MINNEAPOLIS – A Minneapolis woman has been charged with embezzling over $1.5 million from her employer, announced United States Attorney Andrew M. Luger.
According to court documents, Danielle Terese Eisenbacher, 39, was an employee of a Minneapolis-based marketing firm from October 2019 through October 2023. Eisenbacher held various roles in the company, including Director of Operations, Vice President of Operations, and Chief Operating Officer, and was responsible for managing the company’s finances. From January 2020 through October 2023, Eisenbacher used her positions to embezzle more than $1.5 million from her employer. As part of the scheme, Eisenbacher made unauthorized personal transactions using company credit cards, including for designer clothing, jewelry, furniture, personal travel, and home renovations. Eisenbacher tried to conceal her embezzlement by creating false entries in company accounting records to make it look like the unauthorized personal transactions were for legitimate business expenses.
The indictment charges Eisenbacher with one count of mail fraud, six counts of wire fraud, and six counts of money laundering. Eisenbacher made her initial appearance in U.S. District Court before Magistrate Judge Douglas L. Micko earlier this week.
This case is the result of an investigation conducted by the FBI and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Matt Murphy is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Red Lake Woman Charged with Murder, Arson, and Child NeglectRead the Press Release
DULUTH, Minn. – A Red Lake woman has been charged with murder, arson, and child neglect following the death of two young children on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 15, 2024, Jennifer Marie Stately, 35, attacked and killed Minor A and Minor B. Stately slashed at Minor A and Minor B with a knife or other sharp object and then set fire to the residence. Stately fatally stabbed Minor A in the chest. Minor B suffered non-fatal stab wounds but ultimately died from smoke inhalation due to the fire Stately started. Stately fled the scene in her vehicle with Minor C. Later that night around 9:00 p.m., an AMBER Alert was issued. A motorist spotted Stately’s vehicle and contacted law enforcement. Law enforcement located and stopped Stately’s vehicle and recovered Minor C, who was suffering from visible signs of child neglect.
The indictment charges Stately with one count of premeditated murder, one count of murder in the course of committing child abuse, one count of murder in the course of committing arson, one count of arson, and one count of felony child neglect. Stately appeared today in U.S. District Court before Magistrate Judge Leo I. Brisbois. Judge Brisbois ordered Stately to remain in custody pending further proceedings.
“This tragic case demonstrates the importance of close working relationships between the U.S. Attorney’s Office and our state, federal and tribal law enforcement partners. Together, we are able to bring charges swiftly in cases such as this on behalf of the most vulnerable among us,” said U.S. Attorney Andrew Luger.
“This case is another example of how AMBER Alerts save lives. They get critical information out quickly to millions of Minnesotans willing to step up to help rescue a child in mortal danger,” BCA Superintendent Drew Evans said. “We are grateful to the Minnesotan who acted quickly and bravely in this case, and to all Minnesotans who join in the search when a child needs them most.”
“The loss of innocent lives demands swift and decisive action,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “Through seamless collaboration with our state and local counterparts along with the invaluable support of the U.S. Attorney’s Office, we are steadfast in our resolve to pursue justice for the victims. We stand united in seeking closure and healing for the affected family and their community.”
AMBER Alert is a system designed to send alert messages to the public about abducted children that are in imminent danger of serious bodily harm or death. Information about DOJ efforts to support the improvement of AMBER Alert in Indian Country is available on-line.
This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota Bureau of Criminal Apprehension, the Todd County Sheriff’s Office, the Long Prairie Police Department, and the Red Lake Police Department.
Assistant U.S. Attorneys Rachel L. Kraker and Garrett S. Fields are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Strengthens Efforts, Builds Partnerships to Address the Crisis of Missing or Murdered Indigenous PersonsRead the Press Release
MINNEAPOLIS – The Justice Department joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5 as National Missing or Murdered Indigenous Persons (MMIP) Awareness Day.
In recognition of MMIP Awareness Day, Attorney General Merrick B. Garland highlighted ongoing efforts to tackle the MMIP and human trafficking crises in American Indian and Alaska Native communities, and other pressing public safety challenges, like the fentanyl crisis, in Tribal communities.
“There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”
“MMIP Awareness Day is a time to honor and remember victims of violence. It is also a time to reaffirm our commitment to supporting the needs of our Tribal communities,” said U.S. Attorney Luger. “Here in the District of Minnesota, we are fortunate to have an MMIP Assistant U.S. Attorney who is focused on strengthening partnerships and advancing public safety and engagement with Tribal communities across Minnesota and the Great Lakes Region.”
“The FBI remains unwavering in our pledge to work with our law enforcement partners to address the violence that has disproportionately harmed Tribal communities and families,” said FBI Director Christopher Wray. “We will continue to prioritize our support of victims and will steadfastly pursue investigations into the crime impacting American Indian and Alaska Native communities.”
“DEA’s top priority is protecting all communities from deadly drugs, like fentanyl, and drug related violent crime,” said DEA Administrator Anne Milgram. “We know that no community has been spared from these deadly threats and we are committed to keeping Tribal communities safe.”
Justice Department Prioritization of MMIP Cases
Last July, the Justice Department announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions. Last year, Laura M. Provinzino was appointed to serve as the MMIP Assistant U.S. Attorney for the Great Lakes Region.
The MMIP Regional Outreach Program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
Not Invisible Act Commission Response
The Department’s work to respond to the MMIP crisis is a whole-of-department effort. In March, the Departments of Justice and the Interior released their joint response to the Not Invisible Act Commission’s recommendations on how to combat the missing or murdered Indigenous peoples (MMIP) and human trafficking crisis. The NIAC response, announced by Attorney General Garland during a visit to the Crow Nation, recognizes that more must be done across the federal government to resolve this longstanding crisis and support healing from the generational traumas that Indigenous peoples have endured throughout the history of the United States.
Addressing Violent Crime and the Fentanyl Crisis in Indian Country
As noted in the joint response to the NIAC, research suggests that certain public safety challenges faced by many American Indian and Alaska Native communities—including disproportionate violence against women, families, and children; substance abuse; drug trafficking; and labor and sex trafficking—can influence the rates of missing AI/AN persons.
Further, fentanyl poisoning and overdose deaths are the leading cause of opioid deaths throughout the United States, including Indian county, where drug-related overdose death rates for Native Americans exceeds the national rate.
Therefore, federal law enforcement components are ramping up efforts to forge stronger partnerships with federal and Tribal law enforcement partners to address violent crime and the fentanyl crisis, which exposes already vulnerable communities to greater harm.
Accessing Department of Justice Resources
Over the past year, the Department awarded $268 million in grants to help enhance Tribal justice systems and strengthen law enforcement responses. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities.
For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website.
Click here for more information about reporting or identifying missing persons.
Minneapolis Felon Sentenced to 10 Years in Prison for Possession with Intent to Distribute FentanylRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 120 months in prison followed by five years of supervised release for possession of fentanyl with intent to distribute, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 24, 2023, law enforcement executed a search warrant at the South Minneapolis residence of Andre Garner, 42, and recovered almost 800 grams of fentanyl in a van registered to Garner. During their search, law enforcement also recovered over 1,000 grams of cocaine, two firearms, and $9,400 in cash. Garner admitted that he told law enforcement that anything law enforcement found was his, including the money and the van, as part of his guilty plea.
On December 18, 2023, Garner pleaded guilty to one count of possession with intent to distribute fentanyl. He was sentenced today by Judge Jerry W. Blackwell in U.S. District Court.
This case is the result of an investigation conducted by the Hennepin County Sheriff’s Office, Hennepin County Violent Offender Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Hillary A. Taylor and William C. Mattessich prosecuted the case.
Federal Jury Finds Red Lake Woman Guilty of Child Neglect Following the Death of a Child on the Red Lake ReservationRead the Press Release
DULUTH, Minn. – A federal jury found a Red Lake woman guilty of child neglect following the death of a child in her care, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial, Sharon Rosebear, 63, intentionally deprived a child, Minor A, of necessary food and health care over the course of 2022. The evidence at trial established that Minor A died in 2022 from the combined effects of starvation and infection. Rosebear and her co-defendant, Julius Fineday Sr., were both federally charged in 2023 following Minor A’s death: Rosebear was charged with felony child neglect resulting in substantial harm, and her co-defendant Julius Fineday Sr. was charged with second degree manslaughter.
The evidence at trial established that Rosebear acted as one of Minor A’s caretakers in 2022. In accordance with Minnesota law, the jury was instructed that Rosebear’s lack of formal legal custody of Minor A did not alter her responsibility to the child. The evidence at trial established that Rosebear was reasonably able to provide for Minor A’s nutrition and healthcare—including evidence establishing that healthcare and transportation to healthcare is free within the Red Lake Nation, and that all of the adults and children involved in the case received nutritional and cash assistance adequate to meet their basic needs—and that Rosebear nonetheless intentionally deprived Minor A of those basic needs by withholding food, and by looking the other way while Minor A’s health deteriorated. The evidence at trial included evidence that Minor A died at the same weight she had been nearly three years earlier, and that while Rosebear was aware of Minor A’s severe lice infestation, Rosebear responded by keeping Minor A isolated rather than seeking medical attention for Minor A.
Medical testimony at trial established that the type of infection Minor A had when she died could have entered Minor A’s body through scratches in her scalp related to her unaddressed lice. The medical testimony also established that Minor A’s prolonged starvation may have been an independently sufficient cause of death, or may have severely compromised Minor A’s immune system’s ability to fight infection.
Following a six-day trial in U.S. District Court before Chief Judge Patrick J. Schiltz, Rosebear was found guilty of felony child neglect. Rosebear’s co-defendant, Julius Fineday Sr., entered a guilty plea to his charge prior to trial on March 25, 2022. Their sentencing hearings will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker tried the case.
Crookston Man Sentenced to More Than 21 Years in Prison for Producing Child PornographyRead the Press Release
FERGUS FALLS, Minn. – A Crookston man has been sentenced to 262 months in prison followed by 20 years of supervised release for producing images and videos showing the sexual abuse of a minor, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s plea agreement and court documents, the minor victim in the case reported to school officials and to the Crookston Police that Jorge Alberto Torres, Jr., 52, had been sexually assaulting and abusing the minor victim for several years. Torres threatened and coerced the minor victim into submitting to his sexual demands, and he placed a hidden video camera in a bathroom used by the minor victim and others. The following day, law enforcement arrested Torres. Torres asked a family member to hide or destroy his Android cell phone and the hidden video camera. Law enforcement nonetheless recovered the cell phone and, after obtaining a search warrant, found that the cell phone contained multiple images and videos depicting Torres’s sexual abuse of the minor victim and other child pornography.
Torres pleaded guilty on December 20, 2023, to one count of production of child pornography and admitted to other additional conduct constituting production of child pornography. He was sentenced yesterday in U.S. District Court by Judge Katherine M. Menendez.
This case is the result of an investigation conducted by the Crookston Police Department and the FBI's Minneapolis Crimes Against Children Task Force.
Assistant U.S. Attorneys Benjamin Bejar and Emily A. Polachek prosecuted the case.Eveleth Felon Sentenced to 10 Years in Drug Trafficking CaseRead the Press Release
MINNEAPOLIS – An Eveleth man has been sentenced to 120 months in prison followed by five years of supervised release for possession of fentanyl and methamphetamine with intent to distribute, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s plea agreement and court documents, between January 1, 2023, and March 9, 2023, Juan Pedro Alapisco-Ochoa, 52, knowingly conspired with co-conspirators to acquire fentanyl with the intention of distributing it. On January 7, 2023, law enforcement conducted a controlled buy and purchased over 1,000 fentanyl pills from Alapisco-Ochoa and his co-conspirators. On March 7, 2023, as part of a separate investigation, postal inspectors stopped a shipment addressed to the defendant’s apartment which contained 481 grams of methamphetamine packed inside a stereo speaker. Shortly afterwards, law enforcement conducted a controlled delivery to Alapisco-Ochoa’s apartment. Agents seized 11 grams of methamphetamine, 170 blue fentanyl pills, and miscellaneous drug paraphernalia from the apartment.
Alapisco-Ochoa pleaded guilty on October 12, 2023, to one count of possession with intent to distribute fentanyl. He was sentenced on April 24, 2024, in U.S. District Court by Judge Michael J. Davis.
This case is the result of an investigation conducted by the FBI, the Dakota County Drug Task Force, the St. Louis County Sheriff’s Office, the U.S. Department of Homeland Security, and the Lake Superior Violent Crime Drug Task Force.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Scandia Pharmacist Pleads Guilty to Stealing Bottles of OxycodoneRead the Press Release
MINNEAPOLIS – A Scandia pharmacist has pleaded guilty to unlawfully taking bottles of oxycodone from her pharmacy for her own personal use, announced U.S. Attorney Andrew M. Luger.
According to court documents, Kristie Marie Dezell, 46, was the pharmacist in charge at a pharmacy located in Maplewood, Minnesota. From March 2020, until June 2023, Dezell knowingly and intentionally obtained bottles of oxycodone for her own personal use from the pharmacy’s inventory. Dezell falsified the pharmacy’s records to conceal her actions.
Dezell pleaded guilty today in U.S. District Court before Judge Michael J. Davis to one count of obtaining possession of controlled substance by misrepresentation. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the Maplewood Police Department.
Assistant U.S. Attorney Matthew D. Forbes is prosecuting the case.
U.S. Attorney’s Office and the DEA Host Fentanyl Awareness and Prevention SummitRead the Press Release
MINNEAPOLIS – The United States Attorney’s Office along with the Drug Enforcement Administration hosted a community conversation focused on fentanyl awareness and prevention.
Stakeholders from across the Twin Cities, including healthcare advocates, elected officials, outreach workers, community-based organizations, as well as families who have lost loved ones to fentanyl poisoning, convened today to raise awareness about the fentanyl epidemic. The summit included information on current regional drug trends, myths surrounding the fentanyl crisis, and action steps to intervene and help save lives during an overdose situation.
“The goal of this summit is to raise awareness, dispel myths, identify trends and, most importantly, discuss how we as a community can collectively turn the tide on fentanyl deaths in Minnesota,” said United States Attorney Andrew Luger. “I am grateful to the addiction and recovery specialists, the outreach workers, and to the family members who have shared their expertise and their heartbreak. The work must continue. We owe it to our families, our friends, and our communities.”
“The Drug Enforcement Administration is proud to partner with the U.S. Attorney’s Office in an effort to amplify messaging about the dangers of fentanyl in our Minnesota communities,” DEA Omaha Division Special Agent in Charge Steven T. Bell said. “Last year, DEA investigators seized approximately 2.5 million lethal doses of fentanyl in Minnesota. It’s more important than ever that we talk with our loved ones about the consequences that can come from taking just one pill or experimentation with drugs.”
Each year in April, the U.S. Attorney’s Office recognizes National Crime Victims’ Rights Week, which honors crime victims and those who serve them. This year’s theme is “How would you help? Options, services, and hope for crime survivors.” This theme underscores the importance of our individual and collective responsibilities to empower victims through relevant and impactful support services. It highlights the power of collaborative efforts to promote community safety and well-being. For more information please visit: https://ovc.ojp.gov/ncvrw2024/overview
Steele County Man Indicted for International Sexual Exploitation of ChildrenRead the Press Release
MINNEAPOLIS – A Blooming Prairie man has been indicted for sexually exploiting children outside the United States, announced U.S. Attorney Andrew M. Luger.
According to court documents, between November 2021 and April 2022, Steven John Sokel, 61, by aiding and abetting other individuals, coerced three minor girls outside of the United States to engage in sexually explicit conduct for the purpose of producing visual depictions. Sokel also possessed sexually explicit images and videos of minors.
The indictment charges Sokel with two counts of sexual exploitation of children and one count of possession of child pornography. Sokel made his initial appearance in U.S. District Court on April 19, 2024, before Magistrate Judge David T. Schultz. He was ordered to remain in custody pending a formal detention hearing.
This case is the result of an investigation conducted by Homeland Security Investigations and U.S. Customs and Border Protection.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ramsey Tax Preparer Sentenced to Prison for Tax CrimesRead the Press Release
ST. PAUL, Minn. – A Ramsey man has been sentenced to six months in prison followed by one year of supervised release and restitution for operating a tax preparation business as cover for a tax fraud scheme, announced United States Attorney Andrew M. Luger.
According to court documents, Lyle Nierenz, 70, ran tax preparation businesses—called Fast-R-Tax and Lyle’s Tax Service—out of his home in Ramsey, Minnesota. Nierenz prepared and filed numerous income tax returns falsely claiming that his clients had significant tax-deductible charitable contributions, unreimbursed employee expenses, or unreimbursed business expenses. taxNierenz did this without his clients’ knowledge or permission to fraudulently inflate their returns. He then diverted a portion of the inflated refunds to his personal bank accounts.
To avoid detection, Nierenz repeatedly made it appear that his clients self-filed their fraudulent returns. He also provided many of his clients with a doctored copy of their tax returns that matched the refund the client actually received. Between tax years 2014 and 2018, Nierenz’s fraudulent return scheme resulted in a tax loss of approximately $336,000. Nierenz also repeatedly failed to declare on his own tax returns the income he generated by charging his clients for tax preparation.
On July 28, 2021, Nierenz pleaded guilty to one count of aiding and assisting in the preparation of false tax returns and one count of making and subscribing a false tax return. He was sentenced yesterday in U.S. District Court by Judge Donovan W. Frank.
This case is the result of an investigation conducted by IRS Criminal Investigations and the Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Jordan L. Sing and Joseph H. Thompson prosecuted the case.
Minneapolis Man Sentenced to 192 Months in Prison for Receiving, Distributing, and Accessing Child Pornography OnlineRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 192 months in prison, followed by a lifetime of supervised release, for receipt, distribution, and access with intent to view child pornography, announced U.S. Attorney Andrew M. Luger.
According to court documents and the evidence presented at trial, beginning in August 2020, through January 2022, Michael Francis Hamer, 56, knowingly and frequently obtained, distributed, and accessed child pornography online. On multiple occasions, he used Facebook and Gmail to directly message self-identified minor victims, some as young as 11 years old, to request and distribute images and videos depicting the sexual abuse of minors. Hamer also joined Facebook Messenger group chats that were named “Boys sex video,” “Kids Video Sex,” and “#Good Boy?,” among others, to solicit and access child sexual abuse images.
Hamer was previously convicted in Minnesota state court for solicitation of a child to engage in sexual conduct. As a result of this state conviction, Hamer was required to register as a predatory offender with the Minnesota Bureau of Criminal Apprehension. Additionally, Hamer admitted to possessing child pornography during his 2012 conviction.
Hamer was convicted by a federal jury on December 7, 2023, of one count of receipt of child pornography, one count of distribution of child pornography, and two counts of access with intent to view child pornography. He was sentenced today in U.S. District Court before Judge Katherine M. Menendez, who described Hamer’s conduct as “relentless behavior,” and noted that there was long-term damage to the victims depicted in the child sexual abuse material. Judge Menendez also remarked that reviewing one of the child sexual abuse videos at trial “is something I can never unsee,” and that it was something “the jury can never unsee” as well.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension, with assistance from the Minneapolis Police Department and Homeland Security Investigations. It was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorneys Hillary A. Taylor, Emily A. Polachek, and Chelsea A. Walcker prosecuted the case.
Rochester Man Charged with Producing Child PornographyRead the Press Release
MINNEAPOLIS – A Rochester man has been indicted for production and possession of child pornography and coercing a minor to engage in sexually explicit conduct, announced U.S. Attorney Andrew M. Luger.
According to court documents, on multiple occasions between 2015 and 2023, Mathew Richard Adamson, 45, produced child pornography involving 12 and 13-year-old minor girls, including surreptitiously recorded videos. Adamson also possessed sexually explicit images and videos of minors and coerced a minor girl to engage in sexual conduct with him.
The complaint charges Adamson with three counts of production and attempted production of child pornography, one count of possession of child pornography, and one count of coercion and enticement. Adamson was arraigned today in U.S. District Court before Magistrate Judge Dulce J. Foster.
This case is the result of an investigation conducted by the Rochester Police Department, the FBI, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Rebecca Kline is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Finds Bloods Gang Member Guilty of Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A federal jury found a Brooklyn Center man guilty of possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, in the early morning hours of September 28, 2019, Dante Jospeh Tyus, 30, a member of the Minneapolis Bloods street gang, was stopped by the Minnesota State Patrol for driving erratically. Tyus, who showed obvious signs of intoxication, was arrested for driving under the influence. Tyus’s vehicle was towed and impounded. After being booked at the Hennepin County Jail, Tyus made a series of recorded calls expressing concern to his girlfriend and enlisting her assistance in recovering a firearm that was hidden inside his vehicle. Law enforcement obtained a warrant to search the vehicle and recovered a 9mm semiautomatic handgun hidden inside a door panel.
Because Tyus has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Following a four-day trial in U.S. District Court before Judge Susan Richard Nelson, Tyus was found guilty of possessing a firearm as a felon. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI, U.S. Postal Inspection Service, Minnesota State Patrol, and the Minneapolis Police Department.
Assistant U.S. Attorneys Carla J. Baumel and Allen A. Slaughter tried the case.St. Paul Felon Sentenced to Prison for Illegal Possession of AmmunitionRead the Press Release
MINNEAPOLIS – A St. Paul felon has been sentenced to 74 months in prison for illegally possessing ammunition, announced U.S. Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, on August 28, 2022, Bloomington police officers conducted a traffic stop on a vehicle driven by Damien Kent Hallmon, 40, for multiple traffic violations and noticed several indicators of marijuana use. The occupants of the vehicle were asked to step out of the vehicle so it could be searched, and officers found a 9mm firearm with a loaded magazine and no serial number in Hallmon’s fiancé’s purse.
Because Hallmon has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time. The firearm seized in this case, a Polymer 80, is commonly referred to as a “ghost gun” or a “privately made firearm” (PMF).
Hallmon was convicted by a federal jury on November 3, 2023, on one count of possessing ammunition as a felon. He was sentenced yesterday by Judge Kate M. Menendez in U.S. District Court.
This case is the result of an investigation conducted by the Bloomington Police Department, the Hennepin County Sheriff’s Office Forensic Science Lab, the Minnesota Bureau of Criminal Apprehension, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Mary S. Riverso, Ruth S. Shnider, and Laura M. Provinzino prosecuted the case.
Cass County Felon Pleads Guilty to Straw Purchasing ConspiracyRead the Press Release
MINNEAPOLIS – A convicted felon has pleaded guilty for his role in an illegal firearm straw purchasing conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, on May 26, 2023, Donald Duane Armstrong, Jr., 36, and a co-conspirator entered a Federal Firearms Licensee in Walker, Minnesota, where the co-conspirator purchased a Glock model 23 G5, 40 caliber semi-automatic pistol, intending to transfer the firearm to Armstrong, who is a convicted felon. In purchasing the firearm, Armstrong’s co-conspirator lied when filling out the ATF Form 4473, which certifies that he was the actual buyer/transferee of the firearm, when in fact the firearm was intended for Armstrong. On June 14, 2023, law enforcement executed a search warrant at Armstrong’s residence. At the residence law enforcement seized 14 firearms, including the firearm purchased on May 26, 2023. Because Armstrong has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
Armstrong pleaded guilty today in U.S. District Court before Judge Nancy E. Brasel to one count of conspiracy to make a false statement during the purchase of a firearm. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Minnesota Bureau of Criminal Apprehension, the Paul Bunyan Drug Task Force, and the Cass County Sheriff’s Office.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Twin Cities Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Twin Cities man has pleaded guilty to the illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to his plea agreement and court documents, on October 7, 2022, a Minnesota State Patrol officer stopped Salvador Anthony Pacheco, 45, for multiple traffic violations. During the interaction, the officer smelled marijuana in the car and requested a drug-sniffing dog, which alerted officers to additional drugs in Pacheco’s vehicle. A search of the car and its contents revealed a Kahr .45 caliber semi-automatic pistol inside the defendant’s backpack. Because Pacheco has prior felony convictions, including murder, assault, and weapons violations, he is prohibited under federal law from possessing firearms or ammunition at any time.
Pacheco pleaded guilty today to one count of possession of a firearm as a felon in U.S. District Court. He will be sentenced at a later date.
This case is the result of an investigation conducted by the FBI, the Minnesota Bureau of Criminal Apprehension, and the Minnesota State Patrol.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
Federal Jury Finds Red Lake Woman Guilty in Child Abuse CaseRead the Press Release
MINNEAPOLIS – A federal jury found a Red Lake woman guilty of child neglect and endangerment on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger.
Following a five-day trial before Judge Katherine M. Menendez, Bobbi Jo Johnson, aka Bobbi Jo Kingbird, 46, was convicted last week on one count of child neglect—deprivation of food and health care, and one count of child endangerment.
According to evidence presented at trial and court documents, between January 1, 2021, and April 29, 2022, Bobbi Jo Johnson engaged in, aided, and abetted the endangerment, neglect, and abuse of a child who was in the foster care of her sister and co-defendant, Trina Mae Johnson. The abuse included withholding food from the victim to the point of starvation, forcing the victim to stand in uncomfortable positions for long periods of time, and assaulting the victim. As a result of Bobbi Jo Johnson’s and her co-defendants’ abuse, the victim suffered serious and substantial physical, mental, and emotional harm.
Trina Mae Johnson pleaded guilty to one count of child torture, one count of child neglect—deprivation of food and health care, one count of child endangerment, and one count of assault on a minor with a dangerous weapon. Ellie Mae Johnson, Patricia Ann Johnson, and Bertram Calvin Lussier, Jr. each pleaded guilty to one count of child endangerment. All five defendants will be sentenced at a later date.
This case was investigated by the FBI and the Red Lake Tribal Police Department, with support from the Minnesota Bureau of Criminal Apprehension, the Beltrami County Sherriff’s Office, the Bemidji Police Department, and the Blackduck Police Department.
Assistant U.S. Attorneys Ruth S. Shnider and Evan B. Gilead tried the case.
Federal Jury Finds Red Lake Woman Guilty in Child Abuse CaseRead the Press Release
MINNEAPOLIS – A federal jury found a Red Lake woman guilty of child neglect and endangerment on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger.
Following a five-day trial before Judge Katherine M. Menendez, Bobbi Jo Johnson, aka Bobbi Jo Kingbird, 46, was convicted last week on one count of child neglect—deprivation of food and health care, and one count of child endangerment.
According to evidence presented at trial and court documents, between January 1, 2021, and April 29, 2022, Bobbi Jo Johnson engaged in, aided, and abetted the endangerment, neglect, and abuse of a child who was in the foster care of her sister and co-defendant, Trina Mae Johnson. The abuse included withholding food from the victim to the point of starvation, forcing the victim to stand in uncomfortable positions for long periods of time, and assaulting the victim. As a result of Bobbi Jo Johnson’s and her co-defendants’ abuse, the victim suffered serious and substantial physical, mental, and emotional harm.
Trina Mae Johnson pleaded guilty to one count of child torture, one count of child neglect—deprivation of food and health care, one count of child endangerment, and one count of assault on a minor with a dangerous weapon. Ellie Mae Johnson, Patricia Ann Johnson, and Bertram Calvin Lussier, Jr. each pleaded guilty to one count of child endangerment. All five defendants will be sentenced at a later date.
This case was investigated by the FBI and the Red Lake Tribal Police Department, with support from the Minnesota Bureau of Criminal Apprehension, the Beltrami County Sherriff’s Office, the Bemidji Police Department, and the Blackduck Police Department.
Assistant U.S. Attorneys Ruth S. Shnider and Evan B. Gilead tried the case.
Federal Jury Finds Wisconsin Woman Guilty of Trafficking MethamphetamineRead the Press Release
DULUTH, Minn. – A federal jury found a Wisconsin woman guilty of possession with the intent to distribute methamphetamine, announced U.S. Attorney Andrew M. Luger.
Following a three-day trial before Judge John R. Tunheim, Shue Moua, 35, was convicted yesterday on one count of possession with intent to distribute methamphetamine. A sentencing hearing will be scheduled at a later date.
According to the evidence presented at trial, a deputy with the Carlton County Sheriff’s Office executed a traffic stop after witnessing Moua’s erratic behavior behind the wheel of a Ford Taurus in the early hours of March 2, 2023. During their interaction, Moua presented an expired Wisconsin driver’s license and admitted she did not have a valid license or insurance coverage. Officers also observed signs of impairment, namely bloodshot eyes and slurred speech, and conducted a series of field sobriety tests, which she failed. After initially consenting to a search of her vehicle, Moua revoked consent and was subsequently arrested for suspected impaired driving. A search of her person prior to her arrest revealed $634 in cash, and while conducting an inventory of her vehicle prior to impoundment, officers discovered approximately two pounds of methamphetamine and unused plastic baggies.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the Carlton County Sheriff’s Office.
Assistant U.S. Attorneys Matthew D. Evans and Michael P. McBride tried the case.
Eden Prairie Woman Pleads Guilty to Embezzling More Than $1 Million from EmployerRead the Press Release
MINNEAPOLIS – An Eden Prairie woman has pleaded guilty to embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Monica Svobodny, 51, worked as the Supply Chain and Engineering Manager at a furniture manufacturing company located in Edina, Minnesota. Svobodny used her managerial position to embezzle funds and convert them to her own use and benefit. Svobodny regularly used company credit cards for unauthorized personal expenses such as designer clothing, spa services, and luxury hotel stays. To cover her fraud, she left unapproved credit card expenses as “pending” for accounting purposes. On more than 300 occasions, she used company cards to transfer funds to herself via PayPal to cover personal expenses. Svobodny also edited PayPal transaction receipts and fraudulently listed some of the expenses as payments to a defunct company.
In total, Svobodny knowingly and willfully embezzled more than $1,137,000 over a period of seven years.
Svobodny pleaded guilty yesterday in U.S. District Court to one count of wire fraud before Judge Ann D. Montgomery.
This case is the result of an investigation conducted by the Edina Police Department with assistance from the FBI.
Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.
Burnsville Woman Pleads Guilty to Wire Fraud in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – A Burnsville woman has pleaded guilty to her role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced United States Attorney Andrew M. Luger.
According to court documents, Hoda Ali Abdi, 53, was the owner of Alif Halal LLC (“Alif Halal”), a grocery store located in Burnsville, which she enrolled as a food vendor in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. Between January 2021 through 2023, Abdi falsely claimed to have provided approximately $3 million worth of food for children through other co-conspirator’s sites. Abdi provided these co-conspirators with fake Alif Halal invoices that purported to show that Alif Halal had provided substantial amounts of food when, in reality, Abdi provided little or no food. As part of her guilty plea, Abdi admitted that some of her co-conspirators tried to cover up the fraud by directing her to lie to investigators by asserting, falsely, that Alif Halal had provided food to the co-conspirators’ respective businesses. Abdi also claimed, falsely, to have served more than 242,000 meals to children at her Burnsville site. Ultimately, Abdi received $1,275,710 in proceeds, which includes payments from the co-conspirators who received fake Alif Halal invoices.
Abdi, who is the 18th defendant to plead guilty to charges relating to the Feeding Our Future fraud scheme, appeared yesterday in U.S. District Court before Judge Nancy E. Brasel and pleaded guilty to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, Chelsea A. Walcker, and Harry M. Jacobs are prosecuting the case.
Highs Gang Member Sentenced to 19.5 Years in Prison for RICO ConspiracyRead the Press Release
MINNEAPOLIS – Montez Brown, aka “Tez Blood,” was sentenced to 235 months in prison for his criminal conduct, including attempted murder, narcotics trafficking, and possession of a machine gun, as a member of the Minneapolis Highs gang, announced United States Attorney Andrew M. Luger.
“We are addressing gang violence for what it is: organized criminal activity,” said U.S. Attorney Andrew Luger. “Minneapolis gangs have caused a staggering amount of damage to the community through retaliatory shootings, narcotics trafficking, and other illicit activity. Individuals who choose to fuel violence and destruction on behalf of a criminal enterprise such as this will be held accountable under federal law.”
According to court documents, Brown, 32, was a well-respected member and high-level fentanyl trafficker for the Highs gang, a criminal enterprise engaged in a years-long pattern of racketeering activity, including murder, robbery, and trafficking and distribution of controlled substances. Operating on the north side of Minneapolis since 2004, the Highs congregate at businesses and residences located at or near the West Broadway Avenue and Lyndale Avenue North intersection. The Highs have a stranglehold on this area and members do not hesitate to flaunt their illegal activities openly.
Prospective Highs members prove their loyalty to the gang by “putting in work,” i.e., committing acts of violence for the benefit of the gang or offering other benefits such as introducing a source for drugs or firearms. Members of the Highs are expected to “hunt” rival gang members: an express directive to locate and kill rivals. Highs members frequently take to social media to taunt rivals, glorify gang life, and post images of themselves with cash, drugs, and firearms.
To date, thirteen members and associates of the Highs have pleaded guilty and five have been sentenced in U.S. District Court by Judge Nancy E. Brasel.
- Montez Brown, aka “Tez Blood,” 32, of Minneapolis, pleaded guilty on November 6, 2023, to one count of RICO conspiracy and one count of conspiracy to distribute controlled substances. He was sentenced on April 10, 2024, to 235 months in prison followed by five years of supervised release.
- Chase Robertson, aka “Chase Loco,” 25, of St. Paul, pleaded guilty on September 11, 2023, to one count of RICO conspiracy. He was sentenced on February 22, 2024, to 75 months in prison followed by three years of supervised release.
- Douglas Mobley, aka “Nut,” 36, of St. Paul, pleaded guilty on October 11, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Christopher Finch, aka “Twin,” 23, of Minneapolis, pleaded guilty on December 12, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Tony Jelks, aka “BD,” 30, of Minneapolis, pleaded guilty on November 1, 2023, to one count of RICO conspiracy. He was sentenced on April 10, 2024, to 156 months in prison followed by five years of supervised release.
- Randy Tate, 32, of Minneapolis, pleaded guilty on December 4, 2023, to one count of RICO conspiracy. He was sentenced on April 4, 2024, to 115 months in prison followed by three years of supervised release.
- Isaac Hodge, aka “Ike,” 47, of Minneapolis, pleaded guilty on November 2, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Trevoneia Felton, aka “Tre,” 22, of St. Paul, pleaded guilty on November 9, 2023, to one count of RICO conspiracy. He was sentenced on April 3, 2024, to 82 months in prison followed by three years of supervised release.
- Malcolm Samuels, aka “Reggie,” 25, of Minneapolis, pleaded guilty on December 18, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Ronald Washington, aka Black, 37, of Minneapolis, pleaded guilty on November 21, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Dashaun Morris, aka “Mush,” 22, of Minneapolis, pleaded guilty on November 14, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Maron Bailey, aka “Boonie,” 26, of Minneapolis, pleaded guilty on October 5, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Isaiah Bell, 21, of St. Paul, pleaded guilty on December 7, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
These cases are the result of an investigation conducted by the ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, DEA, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections with assistance from the U.S. Marshals Service, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation.
Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley, Jordan L. Sing, and Albania Concepcion for the District of Minnesota and Trial Attorney Brian W. Lynch of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the cases.
Red Lake Man Sentenced to Prison for Domestic Assault as Habitual OffenderRead the Press Release
MINNEAPOLIS – A Red Lake man has been sentenced to 46 months in prison as a habitual offender, followed by three years’ supervised release, for violently assaulting another individual, announced U.S. Attorney Andrew M. Luger.
According to court documents, in the late evening of April 9, 2023, Shawn Rene Lussier, 55, physically assaulted another individual in a hotel room at the Seven Clans Casino on the Red Lake Indian Reservation by repeatedly punching and kicking the individual. The assault caused serious bodily injury to the victim, including a one-inch laceration to the scalp that required stitches and left a scar, a bloody lip, and other body bruises, leaving blood stains throughout the hotel room and causing over $450.00 in property damage to the hotel room. According to court documents, Lussier has multiple Tribal Court convictions for Criminal Domestic Violence involving domestic assaults of several victims committed on separate occasions between May 2017 and December 2021, as well as various alcohol-related offenses.
Lussier was sentenced today in U.S. District Court by Judge Michael J. Davis on one count of domestic assault by a habitual offender.
This case is the result of an investigation conducted by the Red Lake Police Department and the FBI.
Assistant U.S. Attorney Benjamin Bejar prosecuted the case.
Lakeville Man Pleads Guilty to Attempted Robbery of a Credit UnionRead the Press Release
ST. PAUL, Minn. – A Lakeville man has pleaded guilty to attempting to rob a credit union at gunpoint, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 9, 2023, Jeron Marvin Lee Davis, 29, attempted to rob at gunpoint a credit union located in Maplewood, Minnesota. Davis waited outside in a black Chevrolet sedan until the credit union’s manager closed the credit union and walked to his vehicle in the parking lot. Davis approached the manager’s vehicle, pointed a pistol-grip assault rifle at him, and directed him to exit the vehicle. Davis forced the manager at gunpoint to re-enter the credit union and access the vault. The manager explained to Davis that vault access required two employees. Davis threatened to kill the manager but eventually accepted the explanation. Davis stole the manager’s wallet and fled the scene in the black Chevrolet sedan.
Davis pleaded guilty today in U.S. District Court before Judge Eric C. Tostrud to one count of attempted bank robbery. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the Maplewood Police Department.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
Hugo Man Pleads Guilty to Embezzling More Than $1.3 Million from EmployerRead the Press Release
MINNEAPOLIS – A Hugo man has pleaded guilty to mail fraud after embezzling more than $1.3 million from his employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Leon Arthur Keener, 55, was employed as a service manager at an interstate trucking company (“Company A”) from 2011 to 2022. In his role, Keener had managerial oversight for the financial operations at Company A’s Inver Grove Heights location. Beginning in 2015 through 2022, Keener knowingly devised and participated in a scheme to embezzle $1,314,633 from the Company A.
In his position, Keener was responsible for providing vehicle owners and insurance companies with estimates on repair work costs on damaged vehicles. He also provided insurance companies with supplemental repair estimates discovered during the repair process, after the original estimate had already been provided. If the insurance company denied reimbursement of some portion of the claim, Company A would write off the repair cost as a loss. As manager, Keener had the authority to write off repairs and create purchase orders in Company A’s accounts payable system. Keener used his managerial authority to embezzle funds from the company by misappropriating more than $562,000 in reimbursement checks from insurance companies to cover supplemental vehicle repair costs.
According to court documents, his scheme involved misappropriating insurance reimbursement checks for supplemental repairs by writing off the supplemental repair work as a loss, indicating in the accounts payable system that the insurance company had refused to reimburse the supplemental repair. Keener then deposited the insurance check into a personal bank account under his control. He concealed the embezzlement by directing his employees to provide him directly with any checks received from insurance companies, cutting out the administrative and accounting employees on staff at Company A.
Keener also embezzled $751,000 from the company by generating and submitting false vendor payment requests, which he diverted for his own use and benefit. Many of these bogus requests for vendor payments were for a shell company he created and controlled called “CR Services,” which he added to Company A’s accounts payable system in 2012, before the system required verified vendor identification.
All of the vendor and insurance reimbursement payments were facilitated using the mail. Keener used a bank account opened in the name of CR Services to pay personal expenses and transferred funds from the CR Services account into his personal bank account. He used the embezzled funds on gambling trips to Las Vegas, luxury cars, and a boat.
Keener pleaded guilty yesterday in U.S. District Court before Judge Ann D. Montgomery to one count of mail fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the United States Postal Inspection Service.
Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case.
Clay County Man Charged with ‘Stolen Valor’ and Benefits FraudRead the Press Release
BEMIDJI, Minn. – A Dilworth, Minnesota man has been charged in a scheme to defraud the United States Department of Veterans Affairs by falsely claiming to have been a decorated veteran, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2015 through 2020, Mikhail Robin Wicker, 37, carried out a scheme to obtain benefits provided by the United States Department of Veterans Affairs (“VA”) by fraudulently claiming himself to be a decorated veteran of the United States Marine Corps, and falsely claiming that he suffered from combat-related injuries that qualified him for disability and other financial benefits.
According to court documents, as part of the scheme, Wicker falsely claimed that he had served in the United States Marine Corps and that he had been a prisoner of war during deployment in Iraq in 2005. Wicker also claimed that he suffered from Post Traumatic Stress Disorder and other injuries from an improvised explosive device attack while he served in Iraq. Wicker submitted forged and falsified documents in support of his benefits application to the VA including a fraudulent DD214 Certificate of Discharge, and a false document purporting to be a Purple Heart certificate. As a result, Wicker received more than $100,000 in veterans’ benefits which he was not entitled to because he had never served in the military.
Wicker is charged with one count of wire fraud, one count of false military discharge certificate, one count of fraudulent use of military medals, and one count of theft of government funds. Wicker made his initial appearance today in U.S. District Court before Magistrate Judge Jon T. Huseby.
This case is the result of an investigation conducted by the Department of Veterans Affairs, Office of Inspector General, the Department of Defense, Office of Inspector General, and the Social Security Administration, Office of the Inspector General, with assistance from Homeland Security Investigations and the Dilworth Police Department.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Hillary A. Taylor are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
wicker_indictment.pdfMinneapolis Man Charged with Bombing a Minneapolis Hair SalonRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged with maliciously damaging a Minneapolis hair salon by means of an explosive device, announced United States Attorney Andrew M. Luger.
According to court documents, on November 20, 2022, at approximately 2:49 AM, an explosive device detonated at a hair salon located in Minneapolis, causing damage to the exterior and interior of the business. A Ring video camera recording from the salon showed an adult male, later identified as Michael Allen Francisco, 59, placing the explosive device on the window of the salon. Francisco fled the area in a vehicle before the device detonated.
According to court documents, on November 6, 2023, almost one year later, video footage captured Francisco vandalizing the same hair salon. Francisco threw a landscaping rock through the window of the salon, causing the window to break, before fleeing the scene. Investigators were able to collect DNA and other evidence that connected Francisco to both incidents. On March 28, 2024, officers and agents executed a search warrant at Francisco’s residence. Law enforcement recovered the jacket Francisco was wearing on November 6, 2023, during the brick incident; multiple explosive components including suspected energetic powders and fuses; a .32 caliber Iver Johnson Cadet revolver, with ammunition; and methamphetamine. Francisco has a prior felony conviction, prohibiting him from possessing firearms or ammunition at any time.
The indictment charges Francisco with one count of maliciously damaging a building engaged in interstate commerce by means of an explosive device. Francisco made his initial appearance today in U.S. District Court before Magistrate Judge David T. Schultz. He was ordered to remain in custody pending a formal detention hearing scheduled for April 8, 2024.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eight Individuals Charged in Duluth Area Fentanyl and Methamphetamine Trafficking ConspiracyRead the Press Release
DULUTH, Minn. – Eight members of a Chicago-based drug trafficking conspiracy have been indicted for fentanyl and methamphetamine distribution in Duluth and surrounding areas, announced U.S. Attorney Andrew M. Luger.
According to court documents, between December 2021 and February 2024, Carl Maurice Brown, 32, of Chicago, Robert Desean Chism, 35, of Chicago, Matthew James Erickson, aka “EZ,” 35, of Duluth, Anthony Lenard Green, 34, of Chicago, Ezell Cordero Lucas, aka “Cash,” 32, of Chicago, Arreal Dominique Timberlake, 30, of Chicago, Deandre Michael Westmoreland, 35, of Chicago, and Pharoo Nasun Witherspoon, 35, of Chicago, conspired to distribute fentanyl and methamphetamine throughout Duluth and the Twin Ports region. Lucas, who was identified by law enforcement as the leader of the conspiracy, arranged the fentanyl sales in Duluth and directed other members of the conspiracy to conduct the transactions. Throughout the course of the investigation, law enforcement officers with the Lake Superior Violent Offender Task Force have seized large quantities of fentanyl and methamphetamine from conspiracy members.
All eight defendants are charged with conspiracy to distribute fentanyl and methamphetamine.
Chism and Westmoreland made their initial appearances earlier today in U.S. District Court before Magistrate Judge Leo I. Brisbois. Brown, Erickson, Green, and Lucas previously made their initial appearances in U.S. District Court in the District of Minnesota. Witherspoon is currently serving a term of imprisonment in Cook County, Illinois. Timberlake previously made her initial appearance in the Northern District of Illinois. Timberlake’s and Witherspoon’s initial appearances in U.S. District Court in the District of Minnesota will be scheduled at a later date.
This case is the result of an investigation conducted by the Lake Superior Violent Offender Task Force, the Duluth Police Department, the St. Louis County Sheriff’s Office, the Superior (WI) Police Department, the Virginia Police Department, the Hibbing Police Department, and Arrowhead Regional Corrections, with assistance from the U.S. Marshals Service and the St. Louis County Attorney’s Office.
Assistant U.S. Attorney Garrett S. Fields is prosecuting the case.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Twin Cities Felon Charged with Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Twin Cities man has been charged with illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, on October 7, 2022, Salvador Anthony Pacheco, 45, knowingly possessed a Kahr .45 caliber semi-automatic pistol. Because Pacheco has prior felony convictions, including assault, weapons violations, and murder, he is prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Pacheco with one count of possessing a firearm as a felon. Pacheco made his initial appearance before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court on March 29, 2024.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the Minnesota Bureau of Criminal Apprehension, and the Minnesota State Patrol.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indiana Felon Sentenced to 10 Years in Prison for Illegal Firearm Possession Following Inver Grove Heights Bank RobberyRead the Press Release
MINNEAPOLIS – An Indiana man has been sentenced to 120 months in prison followed by three years of supervised release for illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, on December 22, 2022, two men wearing masks entered a bank in Inver Grove Heights, zip-tied two bank employees, and stole nearly $80,000 in cash. The investigation into the bank robbery led law enforcement to execute search warrants on January 11, 2023, during which law enforcement searched Deundrick Damon McIntosh, 45, and a residence at which he had stored some of his belongings. On McIntosh’s person, law enforcement found money with serial numbers matching cash from the bank robbery. Inside the residence was McIntosh’s gun with an extended magazine, along with additional bait bills stolen from the bank.
Because McIntosh has prior felony convictions, including bank robbery and domestic assault, he is prohibited under federal law from possessing firearms or ammunition at any time.
On November 13, 2023, McIntosh pleaded guilty to possessing a firearm as a felon. He was sentenced today in U.S. District Court by Judge John R. Tunheim.
This case was the result of an investigation conducted by the FBI, the Inver Grove Heights Police Department, and the Dakota County Sheriff’s Office.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Waite Park Man Pleads Guilty to Armed Bank RobberyRead the Press Release
ST PAUL, Minn. – A Waite Park man has pleaded guilty to a St. Cloud bank robbery, announced U.S. Attorney Andrew M. Luger.
According to court documents, on May 6, 2021, Ray Reco McNeary, 38, entered a Wells Fargo Bank in St. Cloud and alleged that there was fraud on his bank account. After the bank manager was unable to locate any accounts belonging to McNeary, McNeary became enraged and demanded that $60,000 in cash be taken from the vault and placed in a bank bag. The bank manager activated the silent panic alarm, notifying law enforcement of a problem at the bank.
According to court documents, upon arrival, St. Cloud police officers learned that five employees of the bank were being held hostage by McNeary. Multiple times throughout the incident, McNeary held a pair of scissors against the bank manager’s neck and back. FBI hostage negotiators spoke with McNeary repeatedly during what turned out to be an eight-hour standoff. During the course of negotiations, four of the employees were allowed to leave the bank. The standoff ended at approximately 10:24 p.m. when the bank manager fled the bank and law enforcement moved into the bank and arrested McNeary.
McNeary pleaded guilty today to one count of armed bank robbery in U.S. District Court before Judge Jeffrey M. Bryan. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI and the St. Cloud Police Department.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
St. Paul Man Pleads Guilty to Illegal Possession of a Machine Gun, Crashed Stolen Vehicle Through a Restaurant During Police ChaseRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to illegal possession of a machine gun following a shooting incident that ended with the defendant crashing the stolen vehicle he was driving through an unoccupied restaurant, announced United States Attorney Andrew M. Luger.
According to court documents, on the afternoon of February 15, 2023, officers with the St. Paul Police Department responded to a shots-fired 911 call in the area of Luella Street North and Wilson Avenue. Witnesses reported hearing automatic gunfire coming from a black Jeep traveling westbound on Wilson Avenue that was apparently chasing another Jeep. Within a few blocks of the area, officers located a black Jeep with a rear window that appeared to have been shot up. When officers turned around in their squad car to follow the Jeep, it led officers on a high-speed chase until it eventually hit another vehicle and crashed through the Ox Cart Ale House restaurant in St. Paul, which was unoccupied at the time. Officers saw Moeshea Isiah Hart, 19, exit the Jeep and detained him. On the floor of the restaurant, near the Jeep’s driver’s side door, officers recovered a loaded Glock model 45 9mm pistol with an inserted high-capacity magazine and an attached switch, a conversion device that turns a handgun into a fully automatic machine gun. Approximately 11 9mm discharged cartridge casings were located in and around the driver’s area of the Jeep, including one outside the Jeep on the floor of the restaurant. Police later determined that the Jeep had been reported stolen from St. Paul in December 2022.
Hart pleaded guilty yesterday in U.S. District Court before Judge Jerry W. Blackwell to one count of possession of a machine gun. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Minneapolis Felon Sentenced to 9 Years in Prison for Firearms ViolationsRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 111 months in prison followed by three years of supervised release for possessing a firearm as a felon and for carrying a firearm during and in relation to a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 13, 2023, law enforcement responded to a report of a man wearing a mask and waving a handgun in a white Kia with Colorado plates. Upon arrival law enforcement ordered the sole occupant of the car, identified as Tracrill Smith, 26, out of the Kia and placed him in handcuffs. Law enforcement searched the Kia and found a 9mm semi-automatic pistol with an obliterated serial number and loaded with an extended magazine, 3,340 fentanyl pills and approximately 47.15 grams of fentanyl powder. Because Smith has a previous prior felony conviction, he is prohibited under federal law from possessing firearms or ammunition at any time.
Smith pleaded guilty on October 19, 2023, to one count of possession of a firearm as a felon and one count of carrying a firearm during and in relation to a drug trafficking crime. He was sentenced today in U.S. District Court by Senior Judge Michael J. Davis.This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Maplewood Police Department, and the Ramsey County Sheriff’s Office.
Assistant U.S. Attorney Mary S. Riverso prosecuted the case.Husband and Wife Sentenced to Prison for Roles in Drug Trafficking ConspiracyRead the Press Release
MINNEAPOLIS – Two individuals from Detroit, Michigan, have been sentenced to prison for conspiring to distribute cocaine, announced U.S. Attorney Andrew M. Luger.
According to court documents, beginning in January 2022 through May 2023, Ladale Jajaum Solomon, 30, and Leila Darsel Ivery, 30, conspired together to distribute cocaine. On May 16, 2023, Solomon and Ivery flew on separate flights from Los Angeles, California, to Cleveland, Ohio, each with a layover at the Minneapolis-St. Paul Airport (MSP). Both Solomon and Ivery were transporting cocaine in their respective checked suitcases. Solomon and Ivery intended to transfer the cocaine after landing in Cleveland. During their respective layovers at MSP, law enforcement determined their suitcases were suspect. After obtaining a search warrant, law enforcement seized a total of approximately 23 kilograms of cocaine from the two suitcases.
Ivery pleaded guilty on November 28, 2023, to one count of conspiracy to distribute cocaine. On March 26, 2024, she was sentenced in U.S. District Court by Judge David S. Doty to 57 months in prison, followed by five years of supervised release.
Solomon pleaded guilty on December 5, 2023, to one count of conspiracy to distribute cocaine. He was sentenced today in U.S. District Court by Judge David S. Doty to 120 months in prison, followed by five years of supervised release.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the MSP Airport Police Department.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Member of Minneapolis Highs Gang Pleads Guilty to Firearms Violations Involving Fentanyl TraffickingRead the Press Release
MINNEAPOLIS – A member of the Minneapolis Highs gang has pleaded guilty to possessing a firearm as a felon and to carrying a firearm while trafficking fentanyl, announced United States Attorney Andrew M. Luger.
According to court documents, in March 2023, investigators with the Minneapolis Police Department received information that James Edward Hollman, Jr., 32, who at the time was on supervised release for a prior felon-in-possession conviction, carried a firearm while conducting narcotics transactions inside rental vehicles with out-of-state license plates. On March 15, 2023, officers went to Hollman’s apartment complex in Brooklyn Center to execute search warrants on Hollman’s person, rental vehicle, and apartment unit. When officers observed Hollman enter his rental vehicle parked at his apartment complex, they moved in and detained Hollman. Officers recovered a loaded Glock pistol with an obliterated serial number, an inserted high-capacity magazine, and an attached red laser pointer, a knotted plastic baggie containing 252 blue round “M-30” fentanyl pills, and Hollman’s driver’s license from the vehicle’s center console. Officers also recovered a loaded 50-round drum magazine from the front-passenger seat’s rear map pocket. Officers also recovered about $900 cash from Hollman’s apartment.
Hollman pleaded guilty today in U.S. District Court before Judge Jerry W. Blackwell to one count of possessing a firearm as a felon and one count of carrying a firearm during and in relation to a drug-trafficking crime. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, U.S. Postal Inspection Service, IRS Criminal Investigations, Minnesota Department of Corrections, and Homeland Security Investigations.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Pine City Man Sentenced to 29 Years in Prison for Multi-Victim Child Exploitation and Child Pornography SchemeRead the Press Release
MINNEAPOLIS – A Pine City man has been sentenced to 350 months in prison followed by 12 years of supervised release for producing, receiving, and distributing images of child pornography, and coercing and enticing minors to engage in illegal sexual activity, announced U.S. Attorney Andrew M. Luger.“For years, Caleb McLaughlin used social media to groom, sexually exploit, and abuse hundreds of minor victims. He preyed upon the most vulnerable, with some victims as young as 11 or 12 years old,” said U.S. Attorney Luger. “Protecting Minnesota children from the trauma of sexual exploitation is a critical part of our mission, and I thank all of our partners in law enforcement for their diligence on this investigation.”
“When our children are victimized, the FBI and our law enforcement partners will do everything in our power to hold the perpetrators accountable," said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. "Today’s sentence demonstrates our commitment to seek justice for our most innocent victims.”
According to his plea agreement and court documents, beginning in or about January 2019, Caleb Vincent McLaughlin, 26, used multiple social media accounts to solicit and direct over 200 minor victims to produce and send sexually explicit images, of whom 26 minors have been identified between the ages of 11 and 16 years old in Minnesota and Wisconsin. McLaughlin used a variety of aliases and Snapchat IDs including “Jake Benson,” “Lift11” or “Tech4cm,” in his scheme, and sometimes purported to be 17 years old to prey on minor girls he met online in order to entice and coerce them to create sexually explicit images and videos. McLaughlin targeted minor victims not only to obtain child pornography, but also to coerce minor victims to meet him in person so he could commit hands-on sexual abuse. McLaughlin offered minors drugs, alcohol, vape pens, cash, and gift cards in exchange for sex acts. Then McLaughlin documented that abuse by producing child pornography videos. McLaughlin also distributed numerous videos and images of child pornography, some of which was self-produced and depicted him sexually assaulting minor victims.
On October 11, 2023, McLaughlin pleaded guilty to two counts of production of child pornography, one count of receipt of child pornography, one count of distribution of child pornography, and one count of coercion and enticement of a minor. He was sentenced today by Chief Judge Patrick J. Schlitz, who remarked that the sentence was one of the longest he had ever imposed and called McLaughlin’s behavior, “shocking, even to someone like me, a federal judge who has been sentencing [child sex offenders] for over two decades.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, with substantial assistance from the St. Paul Police Department, Pine County Sheriff's Office, and Hennepin County Sheriff’s Office.
Assistant U.S. Attorneys Hillary A. Taylor and Rachel L. Kraker prosecuted the case.
Federal Jury Finds Shakopee Man Guilty of Methamphetamine TraffickingRead the Press Release
ST. PAUL, Minn. – A federal jury found a Shakopee man guilty of possession and distribution of methamphetamine, announced U.S. Attorney Andrew M. Luger.
Following a three-day trial before Judge Donovan W. Frank, Saul Rodriguez Pineda, 40, was convicted today on three counts of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine. A sentencing hearing will be scheduled at a later date.
According to the evidence presented at trial, law enforcement executed a series of controlled buys of methamphetamine from Rodriguez Pineda on three separate occasions between September and October 2022. On October 12, 2022, law enforcement searched the residence where Rodriguez Pineda was staying in Shakopee, Minnesota, and found 31 pounds of methamphetamine in Rodriguez Pineda’s yard as well as a liquid methamphetamine conversion lab. Law enforcement also found numerous items related to drug trafficking inside the residence.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Minnesota Bureau of Criminal Apprehension, Minnesota River Valley Drug Task Force, and the Shakopee Police Department.
Assistant U.S. Attorneys Allen A. Slaughter and Raphael B. Coburn tried the case.
St. Paul Felon Sentenced to Nine Years in Prison for Illegal Possession of a Firearm Following Bar ShootoutRead the Press Release
ST. PAUL, Minn. – A St. Paul man has been sentenced to 108 months in prison followed by three years of supervised release for the illegal possession of a firearm following a 2021 shootout near a St. Paul bar, announced U.S. Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, on the afternoon of September 18, 2021, Anthony Charles Deberry, 42, also known as “Peanut,” got into a verbal altercation with a man inside a bar in St. Paul and, as a result, was forced to leave and prohibited from re-entering the bar. Deberry remained in the vicinity of the bar. Later that evening, Deberry waited outside the bar, followed a group of men down the sidewalk after they left the bar, and brandished a 9mm handgun with an activated laser site. Shortly thereafter, gunfire broke out, including one shot fired by Deberry. Deberry suffered from multiple gunshot wounds and was taken to Regions Hospital. Surveillance video footage from the bar showed Deberry hide his firearm under a parked car after the shooting. Responding law enforcement officers recovered Deberry’s firearm as well as multiple discharged cartridge casings on the sidewalk.
Because Deberry has prior felony convictions, he is prohibited from lawfully possessing firearms or ammunition at any time.
On June 20, 2023, Deberry was convicted by a federal jury on one count of possession of a firearm as a felon. He was sentenced today in U.S. District Court by Judge Eric C. Tostrud. In sentencing Deberry, Judge Tostrud applied a 2-level enhancement for obstruction aimed at intimidating trial witnesses.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Craig R. Baune prosecuted the case.