District of Minnesota
Press releases recorded for this federal judicial district.
Federal Indictment Charges Rush City Woman with Mail Fraud, Money LaunderingRead the Press Release
MINNEAPOLIS – A Rush City woman has been indicted for mail fraud and money laundering after participating in multiple schemes that defrauded individuals throughout the United States, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2016 through April 2022, Gayle Joyce Ferngren, 69, and others participated in a scheme to launder proceeds that were fraudulently obtained from victims throughout the United States, including the proceeds of romance fraud scams and schemes to defraud Federal Pandemic Assistance Programs. After receiving the fraudulent proceeds, Ferngren kept a portion for herself and transmitted most of the funds to other scheme participants, including to individuals located overseas. In total, Ferngren laundered at least $1.8 million in fraud proceeds.
Ferngren is charged with four counts of mail fraud and one count of conspiracy to commit money laundering. She will make her initial appearance in U.S. District Court at a later date.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service, the U.S. Department of Labor–Office of Inspector General, and the FBI.
Assistant U.S. Attorneys Matthew S. Ebert and Allison K. Ethen 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.
St. Paul Woman Pleads Guilty to Child Sex Trafficking ConspiracyRead the Press Release
MINNEAPOLIS – A St. Paul woman has pleaded guilty to her role in a sex trafficking conspiracy after recruiting six minor victims to engage in commercial sex acts, announced United States Attorney Andrew M. Luger.
According to court documents, from May 2020 through December 2020, Gisela Castro Medina, 20, conspired with co-defendant Anton Joseph Lazzaro, 32, to recruit and solicit six minor victims to engage in commercial sex acts.
According to court documents, in May 2020, Castro Medina met Lazzaro through the Seeking Arrangements website, which is known as a “sugar daddy” website. Lazzaro began communicating with Castro Medina and a minor victim and invited them to his condo at the Hotel Ivy in Minneapolis. Before arriving at the Hotel Ivy, Castro Medina told Lazzaro that the minor victim was only 16 years old. Lazzaro provided Castro Medina and the minor victim with alcohol and paid them $600 for commercial sex acts with him. Lazzaro continued to engage in commercial sexual activity with the minor victim and, on each occasion, Lazzaro paid her in the form of an envelope of cash. Castro Medina took half of each cash payment.
According to court documents, Castro Medina and Lazzaro continued to communicate via Snapchat, WhatsApp, and Signal. Lazzaro directed Castro Medina to use WhatsApp and eventually Signal because of the applications’ encryption and deletion features. Castro Medina used social media and her school, friend, and community networks to identify other minor girls for Lazzaro. Castro Medina would show Lazzaro photographs of minor girls and if Lazzaro “approved” Castro Medina would reach out to the minor and provide the minor’s contact information to Lazzaro. Castro Medina told the minors that Lazzaro was an older guy with a lot of money, and that he wanted to be a sugar daddy to younger girls.
Castro Medina admitted that, at the time of recruitment, she knew that the victims were minors and that Lazzaro paid the minor victims money in exchange for sex acts. Castro Medina also admitted that Lazzaro provided the minor victims with alcohol, vaping cartridges, food, smartphones, high-end purses, rooms in the Hotel Ivy, and transportation. For her role of identifying, recruiting, and introducing minors, Lazzaro compensated Castro Medina with cash and Venmo payments, as well as rent and utility payments for her apartment, tuition payments to the University of St. Thomas, car payments, travel expenses, and other items.
According to court documents, Castro Medina and Lazzaro discussed which of the minor victims spoke to law enforcement following the execution of federal search warrants in December 2020. Castro Medina admitted that in March 2021, she and Lazzaro aided and abetted one another to obstruct law enforcement by agreeing to pay off a 15-year-old victim to prevent her from talking to law enforcement about engaging in commercial sex with Lazzaro. Castro Medina picked up the minor victim at her place of employment, drove the minor victim around in her Mini Cooper, and provided her with hundreds of dollars in cash, gift cards, vapes, and alcohol from Lazzaro. Castro Medina also told the minor victim not to text Lazzaro anymore.
Castro Medina pleaded guilty today before Chief Judge Patrick J. Schiltz to one count of conspiracy to commit sex trafficking of minors and one count of obstruction. A sentencing hearing has not yet been scheduled.
This case is the result of a joint investigation by the FBI and the Minnesota Human Trafficking Investigators Task Force – led by the Bureau of Criminal Apprehension, with assistance from the Minneapolis Police Department, the West Hennepin Public Safety Department, and the Wright County Sheriff’s Office.
Assistant U.S. Attorneys Angela M. Munoz, Emily A. Polachek, and Laura M. Provinzino are prosecuting the case.
Chinese National Sentenced to Five Years for Cyberstalking and Identity TheftRead the Press Release
ST. PAUL, Minn. – A Chinese national was sentenced to 60 months in prison for cyberstalking a female Minnesota college student, and a concurrent 54 months’ imprisonment sentence for stealing the victim’s identity as a part of his cyberstalking scheme, followed by three years of supervised release, announced United States Attorney Andrew M. Luger.
According to court documents, between January 2020 and November 2021, Ki Cheung Yau, 28, created multiple online accounts on various websites, including social media platforms, dating websites and pornography websites, using the name, photos, and personally identifying information of the victim. Yau used these accounts to communicate with strangers on the internet while posing as the victim. Yau falsely portrayed the victim on social media, dating and sexually focused websites as a young woman soliciting submissive or violent sexual relationships.
Yau then communicated with strangers online and tried to help them locate the victim and follow through on his invitations for dominating and violent sexual encounters. According to court documents, on two separate occasions in January 2021, a man went to the victim’s residence and asked for the victim by name, presumably because he believed he was meeting the victim for a sexual encounter. Also, Yau’s cyberstalking resulted in strangers directly messaging the victim in response to explicit accounts and posts made by Yau posing as the victim. Further, the victim’s family and friends’ names, photos, and contact information were also included in Yau’s stalking scheme. The victim was forced to move to a new residence and change her phone number.
On June 23, 2022, Yau pleaded guilty to one count of cyberstalking and one count of identity theft. As part of his plea agreement, Yau admitted to cyberstalking seven additional victims outside of Minnesota, in the United States, Canada and the United Kingdom from 2017 to 2021.
Yau was sentenced on December 16, 2022, before U.S. District Judge Wilhelmina M. Wright. During the sentencing hearing, Judge Wright stated that Yau’s “actions are predatory and purely evil,” showing “a disregard for the safety and well-being of the victims and disregard for the law.” In imposing the statutory maximum sentence for cyberstalking, Judge Wright reflected on the impact of Yau’s cyberstalking on victims and told Yau, “The injuries you cause do not heal easily.”
This case is the result of an investigation conducted by the FBI and the St. Paul Police Department.
Special Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.
Lino Lakes Felon Sentenced to 24 years in Prison for Methamphetamine Trafficking and Firearms Violations in Connection to Kidnapping, Torture CaseRead the Press Release
MINNEAPOLIS – A Lino Lakes man has been sentenced to 289 months in prison followed by 10 years of supervised release for drug trafficking and firearms violations in connection to the December 2021 kidnapping and torture of a man, announced U.S. Attorney Andrew M. Luger.
According to court documents, on April 11, 2021, officers with the Worthington Police Department conducted a traffic stop of a vehicle driven by Jose Angel Chapa-Aguilera, 24. The traffic stop led to a search of the vehicle. Officers located a bag containing a loaded 9 mm semi-automatic pistol and more than two pounds of methamphetamine sealed inside four zip-lock bags in the spare tire compartment.
According to court documents, on December 20, 2021, at his Brooklyn Park residence, Chapa-Aguilera confronted a man about a drug debt. During the confrontation, Chapa-Aguilera brandished a handgun, ordered the man to the ground, tied his hands behind his back, and proceeded to beat and torture the victim for hours using a heated knife and a pipe, due to a perceived drug debt. During the torture, Chapa-Aguilera demanded money from the victim. Before leaving the residence, Chapa-Aguilera barricaded the victim in a crawlspace under the house. The victim was later able to escape and contact law enforcement. The victim suffered extensive injuries, including numerous burns, broken ribs, a large laceration above his eye and required a blood transfusion. Law enforcement seized approximately three pounds of methamphetamine from Chapa-Aguilera’s residence during a search warrant executed shortly thereafter.
According to court documents, on January 7, 2022, law enforcement located Chapa-Aguilera driving a purple-camouflage Humvee in the Twin Cities. After a high-speed pursuit, officers disabled the vehicle and pulled Chapa-Aguilera from the Humvee. Officers also recovered from the vehicle a 9mm semi-automatic handgun and several 9mm rounds of ammunition.
Chapa-Aguilera was sentenced yesterday in U.S. District Court by Judge Joan N. Ericksen. Chapa-Aguilera pleaded guilty on September 6, 2022, to one count of possession of a firearm in furtherance of a drug trafficking crime and one count of possession with the intent to distribute methamphetamine.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hennepin County Violent Offender Task Force (VOTF), the Brooklyn Park Police Department, and the Worthington Police Department.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Brooklyn Center Man Sentenced to 124 Months in Prison for Methamphetamine TraffickingRead the Press Release
ST. PAUL, Minn. – A Brooklyn Center man was sentenced to 124 months in prison, followed by five years of supervised release for methamphetamine trafficking, announced United States Attorney Andrew M. Luger.
According to court documents, in May 2020, law enforcement began investigating Matthew Hines, 37, of Brooklyn Center and his co-defendant Chue Xiong, 39, of St. Paul. As part of a drug trafficking conspiracy, Hines and Xiong coordinated and facilitated the distribution of methamphetamine, as well as collected drug proceeds to send back to their supplier. On May 11, 2020, law enforcement observed Xiong leave Hines’s residence with a brown bag in his hand. Law enforcement conducted a traffic stop of Xiong’s vehicle and found approximately 1.4 kilograms of methamphetamine inside the brown bag, 614 grams of methamphetamine in the driver’s side door pocket and a 9mm handgun underneath the floor mat on the driver’s side. Xiong was also wearing a holster. On May 12, 2020, law enforcement executed a search warrant at Hines’s residence and vehicle. Inside Hines’s garbage they found a total of 419 grams of methamphetamine. Law enforcement also found an additional 2.6 kilograms of methamphetamine in the back seat of Hines’s vehicle, $24,434 in cash and several cell phones.
Hines pleaded guilty on May 6, 2021, to conspiracy to distribute methamphetamine. He was sentenced yesterday in U.S. Court by Senior Judge Donovan W. Frank.
On March 30, 2021, co-defendant Xiong pleaded guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute methamphetamine. On May 26, 2022, Xiong was sentenced in U.S. District Court by Senior Judge Donovan W. Frank to 156 months in prison, followed by five years of supervised release.
This case was the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the Minnesota State Patrol.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Savage Man Arrested, Charged with Possession of Machine Gun and Attempted Possession of Hand GrenadesRead the Press Release
MINNEAPOLIS – A Savage man has been arrested and charged in a federal criminal complaint for possession of a machine gun and for attempting to receive and possess unregistered destructive devices, specifically hand grenades, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on September 27, 2022, the FBI received a tip from a concerned citizen reporting disturbing behavior of a 20-year-old man, later identified as River William Smith.
The FBI Joint Terrorism Task Force investigation revealed evidence that Smith was preparing for a violent exchange with police. Smith stated he is “pro mass shooting,” sympathized with the Parkland school shooter, and expressed admiration for the individual charged with the recent shooting at a Colorado Springs LGBTQ nightclub. The FBI also discovered Smith had access to fully automatic rifles, handguns, suppressors, body armor and a Kevlar helmet. Smith stated that he was preparing to fight the police and was dedicated to dying in that fight. Smith asked a government informant for grenades and an illegal part to convert his AR-15 style rifle into a fully automatic machine gun. On December 14, 2022, under supervision of law enforcement, a meeting between Smith and a government informant was arranged. At the meeting, Smith purchased three hand grenades and four auto sears. Smith was arrested by law enforcement.
Smith is charged with one count of possession of a machine gun and one count of attempt to receive and possess destructive devices. He appeared today in U.S. District Court before Magistrate Judge David T. Schultz. Smith was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Manda Sertich and Andrew Winter, and Department of Justice Trial Attorney Justin Sher.
A complaint 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 Saint Paul Man Guilty of Large-Scale Marijuana Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. - A Saint Paul man was found guilty by a federal jury of conspiracy to distribute marijuana and possession with the intent to distribute marijuana, announced United States Attorney Andrew M. Luger.
Following a three-day trial before U.S. District Senior Judge Paul A. Magnuson, Danny William Gehl, Jr, 40, was convicted on December 14, 2022, of one count of conspiracy to distribute marijuana and one count of possession with the intent to distribute marijuana. A sentencing hearing has not yet been scheduled.
As proven at trial, from 2016 through June 2021, Danny William Gehl, Jr., along with co-conspirators Douglas Robert Finch, David William Gehl, Frank Joseph Kittleson, Patrick Thomas Maykoski and Daniel Richard Thomas conspired to distribute more than 1,000 kilograms of marijuana. The defendants and others were part of a drug trafficking operation (DTO) that shipped marijuana from California to Minnesota. Members of the DTO routinely sent shipping crates from a warehouse in St. Paul, Minnesota, to a warehouse in North Highlands, California. The DTO members would fly from Minnesota to California to purchase the marijuana, fill the crates with marijuana and then load them on a delivery truck for shipment back to Minnesota. Once the shipment arrived in Minnesota, the DTO members unpacked the crates, repackaged the marijuana, and placed the marijuana in large garbage bags and boxes for distribution. Members of the DTO then transported the marijuana from the Minnesota warehouse to various locations for storage and packaging pending distribution to customers.
This case is the result of an investigation conducted by Homeland Security Investigations, the IRS-Criminal Investigation Division, Ramsey County Sheriff’s Office, the Saint Paul Police Department, the BCA and the Violent Crime Enforcement Team.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Albania Concepcion are prosecuting the case.
Federal Indictment Charges Duluth Man with Wire FraudRead the Press Release
MINNEAPOLIS – A Duluth man has been indicted for wire fraud after pretending to operate a law firm and defrauding an individual out of thousands of dollars in legal fees, announced U.S. Attorney Andrew M. Luger.
“I am grateful for the diligence and the coordinated work of the FBI, the Duluth Police Department, and the St. Louis County Attorney’s Office for investigating the defendant’s long history of repeated and unrelenting fraudulent conduct,” said U.S. Attorney Andrew M. Luger.
According to court documents, between March and April 2022, Gale Allen Rachuy, 72, devised and executed a scheme to defraud an individual (Victim A) by falsely representing that he could provide legal services in connection with Victim A’s post-conviction motion in exchange for $10,000. Rachuy told Victim A that he operated Midwest Legal Service, a Duluth-area law firm, for more than 38 years and claimed to employ several attorneys, including a retired federal judge who previously served on the Seventh Circuit Court of Appeals (Judge A) and a retired Hennepin County District Court judge (Judge B).
According to court documents, on March 10, 2022, Rachuy sent a letter to Victim A on Midwest Legal Service letterhead falsely claiming that Judge A would assist in Victim A’s legal representation and enclosed a copy of a retainer agreement seeking a $2,500 payment. On March 15, 2022, Rachuy received the $2,500 retainer from Victim A. Shortly thereafter, Victim A became suspicious and confronted Rachuy because Victim A had not received a draft of the legal documents Rachuy had promised to file. Rachuy promised Victim A that he would promptly refund the money, but never did so. Instead, Rachuy continued to falsely assure Victim A that Judge A and Judge B were working on the case.
Rachuy is charged with one count of wire fraud. He made his initial appearance in U.S. District Court today before Magistrate Judge David T. Schultz. Rachuy was ordered detained pending a formal detention hearing scheduled for 1:30 pm on Monday, December 19, 2022, before Magistrate Judge Leo I. Brisbois.
This case is the result of an investigation conducted by the FBI, the Duluth Police Department, and the Hermantown Police Department, with assistance from the St. Louis County Attorney’s Office.
Assistant U.S. Attorney Chelsea A. Walcker 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.
CEO of Medical Device Company Sentenced to Two Years in Prison for Tax EvasionRead the Press Release
MINNEAPOLIS– A Mounds View man has been sentenced to 24 months in prison followed by two years of supervised release and ordered to pay $6,058,980 in restitution for failing to pay payroll taxes for several years, announced U.S. Attorney Andrew M. Luger.
According to the plea agreement and other court documents, Larry Wallace Lindberg, 68, was a pharmacist and the CEO of Midwest Medical Holdings LLC, a Mounds View-based pharmaceutical and medical equipment company. As the owner and CEO of the company, Lindberg was responsible for filing tax returns and paying taxes on behalf of the company. Lindberg failed to pay the Internal Revenue Service (“IRS”) several hundred thousand dollars in federal payroll taxes each quarter. In all, Lindberg owes more than $6 million to the IRS.
Beginning in 2011, the IRS spent years attempting to collect on the tax debt. Lindberg entered into several installment agreements with the IRS in which he agreed to make regular payments towards the tax debt, but ultimately failed to make the payments and defaulted on each of the agreements. When the IRS attempted to collect on the tax debt, Lindberg took steps to evade the collection efforts by hiding his assets from the IRS. Among other things, Lindberg regularly diverted money from his company to other entities and used it to purchase real estate and other assets, and to fund his personal lifestyle. He also put assets in the name of his children, including an airplane, airplane hangar, and two vacation homes in Florida, in order to conceal his ownership and control from the IRS.
Lindberg pleaded guilty on April 21, 2022, to one count of tax evasion. Lindberg was sentenced today in U.S. District Court by Judge Katherine M. Menendez
This case is the result of an investigation conducted by the IRS Criminal Investigation Division.
Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.
Las Vegas Woman Pleads Guilty in $7.1 Million Wire Fraud Scheme to Defraud Federal Pandemic ProgramsRead the Press Release
ST. PAUL, Minn. – A Las Vegas woman pleaded guilty today to one count of wire fraud, announced United States Attorney Andrew M. Luger.
According to court documents, from June 2020 through January 2022, Tequisha Solomon, 39, executed a scheme to fraudulently obtain pandemic assistance money from various states, including Minnesota’s Department of Employment and Economic Development (DEED) and California’s Employment Development Department (EDD).
As part of the fraud scheme, Solomon sought Unemployment benefits (UI) from states where she had no lawful basis to receive them. For example, while Solomon resided in Minnesota and Nevada, she falsely claimed to California’s EDD that she worked and resided in Los Angeles, California. As a result, California’s EDD paid Solomon at least $37,000 in periodic UI payments between approximately in 2020 and 2021, during which time she actually resided in Minnesota or Nevada.
Solomon also unlawfully sought to obtain UI benefits from multiple states simultaneously. For instance, in October 2020, Solomon fraudulently claimed UI benefits from the Illinois Department of Employment Security when she was actually residing in Minnesota and was already fraudulently receiving UI benefits from California’s EDD. In March 2021, Solomon fraudulently applied for UI from Minnesota’s DEED, and concealed her fraudulent receipt of UI benefits from California and Illinois.
In addition to fraudulently obtaining pandemic-related benefits for herself, Solomon also assisted others to obtain pandemic-related funds in exchange for a fee, as much as $2,000. Solomon submitted over 200 false and fraudulent applications for UI benefits on behalf of others.
In total, Solomon fraudulently applied for $7,149,032 in pandemic-related funds and caused the United States and multiple state agencies to pay out at least $4,708,191 in the form of fraudulent UI benefits and small business loan proceeds.
Solomon pleaded guilty today to one count of wire fraud in U.S. District Court before Judge Eric C. Tostrud. A sentencing hearing has not been scheduled yet.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service, with assistance from the St. Paul Police Department and the California Employment Development Department.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
St. Paul Felon Sentenced to 240 Months for Shipping Drugs into Minnesota Correctional FacilitiesRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 240 months in prison, followed by five years of supervised release, for distribution of a drug analogue, possession with intent to distribute fentanyl, and illegally possessing firearms as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, in March 2021, the Minnesota Department of Corrections (“DOC”) initiated an internal investigation into the introduction of narcotics into multiple DOC facilities, including Stillwater, Oak Park Heights, Faribault, and Rush City prisons. Investigators identified Walter Davis, a/k/a “Disney,” 40, as the source. On April 12, 2021, Davis attempted to mail six letters to DOC inmates that contained news articles printed on high-quality Strathmore cotton paper soaked in MDMB-4en-PINACA, a synthetic cannabinoid substance which produces hallucinogenic effects when consumed. Investigators intercepted and seized the letters. Investigators obtained search warrants for two residential locations Davis frequented. Following a search of the first location, Davis’s primary residence in Eagan, investigators recovered two baggies of fentanyl, $3,000 in cash, digital scales, and a loaded Smith and Wesson .38 caliber revolver. A search of the second location, an apartment in Maplewood, yielded over 400 grams of fentanyl, digital scales, a spray bottle containing MDMB-4en-PINACA, a package of Strathmore cotton paper, and a loaded Rossi .357 caliber Magnum revolver.
Davis was sentenced on Friday by U.S. District Court Judge Wilhelmina M. Wright. On June 15, 2022, Davis went to trial before U.S. District Judge Wilhelmina M. Wright. On June 17, 2022, three days into the trial, Davis pleaded guilty to all counts, including one count of attempted distribution of a controlled substance analogue, one count of possession with intent to distribute fentanyl, and two counts of possessing a firearm as a felon.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Minnesota Department of Corrections.
Assistant U.S. Attorneys Allison K. Ethen, Lauren O. Roso, and Ruth S. Shnider prosecuted the case.
Federal Jury Finds St. Paul Man Guilty of Possession with Intent to Distribute CocaineRead the Press Release
ST. PAUL, Minn. – A federal jury convicted a St. Paul man of possession with intent to distribute cocaine, announced U.S. Attorney Andrew M. Luger.
Following a four-day trial before U.S. District Judge Wilhelmina M. Wright, Hugo Escudero, 45, was convicted on December 9, 2022, of one count of possession with intent to distribute cocaine. A sentencing hearing will be scheduled at a later time.
According to the evidence presented at trial, on September 22, 2021, Escudero was arrested in the parking lot of a Home Depot in St. Louis Park while attempting to sell one kilogram (2.2 lbs.) of cocaine for $38,000. Law enforcement also recovered approximately 13.5 kilograms (30 lbs.) of cocaine at two properties belonging to Escudero.
This case was the result of an investigation conducted by the West Metro Drug Task Force and the Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Nathan H. Nelson and Matthew D. Forbes.
Twin Cities House-Flipper Sentenced to Nearly 5 Years in Prison for $3 Million Investor Fraud SchemeRead the Press Release
MINNEAPOLIS – A Twin Cities house-flipper was sentenced to 58 months in prison, followed by two years of supervised release, and ordered to pay $1,661,407.50 in restitution, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2018 through December 2020, Suzanne Griffiths, 46, executed a scheme to defraud individuals by soliciting investments in her Minnesota-based house-flipping businesses. Griffiths was active in the house-flipping community and frequently attended seminars of a national real estate investment coaching program. Through these seminars, Griffiths networked with other individuals and pitched her own house-flipping businesses: Level 5 Properties, LLC; 45 North Investment Properties, LLC; and Our Town Properties. Griffiths frequently contacted seminar attendees about potential investment opportunities in properties owned by her companies. Griffiths promised investors various manners of repayment in return for investments. Griffiths frequently made material misrepresentations about the status of real estate projects, failed to take promised action, falsified documents, and misappropriated investments for her own use.
According to court documents, in November 2018, Griffiths solicited a $100,000 investment from an investor to finance the renovation of a property. Griffiths promised the investor that they would hold second position on the mortgage and falsely assured the investor that the necessary mortgage documents had been filed with the appropriate county. In reality, Griffiths never filed the documents and, as a result, the investor lost their entire investment.
According to court documents, in July 2020, Griffiths solicited a $70,000 investment from another investor. Months later, to facilitate the solicitation of a second investment for renovations of a property, Griffiths provided the investor with information, printed on title company letterhead, demonstrating the potential of the requested investment. The investor later contacted the title company and learned that Griffiths had altered the information provided by the title company to intentionally omit numerous preexisting encumbrances on the property. The investor lost their entire $70,000 from the first investment.
Griffiths was sentenced today in U.S. District Court by Judge Joan N. Ericksen. Griffiths pleaded guilty to one count of wire fraud and one count of money laundering on June 16, 2022.
This case is the result of an investigation led by IRS – Criminal Investigations and the United States Postal Inspection Service.
Assistant U.S. Attorney Jordan L. Sing prosecuted the case.
Kansas City Man Pleads Guilty for His Part in a Nationwide Telemarking Fraud SchemeRead the Press Release
MINNEAPOLIS- A Kansas City man has pleaded guilty to conspiracy to commit mail fraud in connection to a $300 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims announced, U.S. Attorney Andrew M. Luger.
According to court documents, from 2000 through February 2020, Russell Jason Rahm, 52, participated in a telemarketing fraud scheme involving fraudulent magazine subscription sales. Rahm was the owner and Chief Executive Officer of several Kansas-based companies involved in the fraudulent scheme, including Subscription Ink Co. and Millennium Marketing. As part of the scheme, Rahm’s companies, along with other companies, used fraudulent sales scripts to defraud victim-consumers, many of whom were elderly or otherwise vulnerable, out of hundreds or even thousands of dollars. The fraudulent sales scripts were designed to induce consumers, through a series of lies and misrepresentations, into making large or repeat payments. Rahm’s companies also handled collections for those victim-consumers who did not pay or who challenged the resulting charges as fraudulent. Rahm’s companies received, reviewed, and responded to complaints from victim-consumers to state Attorney General’s offices and the Better Business Bureau.
According to court documents, Rahm and his companies also provided sales leads and handled order management, billing, and collections for other companies involved in fraudulent magazine sales in exchange for a percentage of the revenue received from victim-consumers.
Rahm and his companies defrauded thousands of victims and collected approximately $103 million from victims as a result of this fraudulent scheme.
In total, 60 defendants were charged, in multiple indictments, for their roles in this scheme that targeted more than 150,000 elderly and vulnerable victims out of $300 million.
Rahm pleaded guilty today to one count of conspiracy to commit wire fraud in U.S. District Court before Judge John R. Tunheim. A sentencing hearing has not been scheduled yet.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Melinda A. Williams, and Matthew S. Ebert are prosecuting the case.
Former Willmar Attorney Sentenced to 18 Months in Prison for Bankruptcy FraudRead the Press Release
ST. PAUL, Minn.– A former attorney from Willmar has been sentenced to 18 months in prison, followed by one-year of supervised release and required to pay a $20,000 fine for fraudulent concealment of bankruptcy assets, announced United States Attorney Andrew M. Luger.
According to court documents, on November 3, 2015, Gregory Ronald Anderson, 63, a former attorney, prepared and filed a voluntary bankruptcy petition on behalf of his client, James Alan Rothers. Upon the filing of the petition, Anderson knew that Rothers’ assets, wherever located, became property of a “bankruptcy estate” to be used to pay Rothers’ creditors. Anderson also filed a set of Rothers’ bankruptcy schedules in which Rothers was required to disclose, under penalty of perjury, the full extent and value of all Rothers’ assets as of November 3, 2015. As Rothers’ bankruptcy attorney, Anderson had to certify that the petition filed with the bankruptcy court was true and accurate.
Prior to the bankruptcy filing, Anderson created fake liabilities to create the appearance that Rothers was insolvent when, in fact, Rothers could easily have paid all his creditors. Specifically, Anderson arranged to have a fictitious lawsuit filed against Rothers, and then instructed Rothers to default in that lawsuit. This created a judgment of approximately $608,000 against Rothers to further the appearance that he was insolvent. Anderson also created documents that made it appear that an Iowa company had loaned $240,000 to Rothers and that Rothers had to repay this loan. This loan was fabricated and created to bolster the appearance of Rothers’ insolvency.
Nevertheless, when Anderson filed Rothers’ bankruptcy petition on November 3, 2015, he certified that he had no knowledge that the information in Rothers’ schedules was incorrect. But, despite this certification, Anderson knew about the above-outlined efforts to make Rothers appear insolvent. Anderson also knew that Rothers had purposefully failed to disclose on his bankruptcy schedules $100,000 in gold coins, $686,000 on deposit in bank accounts for two companies, and $455,484 in uncashed checks. In fact, Anderson helped Rothers open one of the concealed bank accounts and received portions of his legal fees from the other.
Anderson was sentenced on December 7, 2022, in U.S. District Court by Judge Eric C. Tostrud. On August 8, 2022, Anderson pleaded guilty to one count of fraudulent concealment of bankruptcy asset. Anderson’s plea agreement also required his voluntary disbarment from the practice of law.
On November 7, 2019, James Alan Rothers pleaded guilty to one count of fraudulent concealment of bankruptcy assets in U.S. District Court before Judge Susan Richard Nelson. Rothers will be sentenced at 10:30 a.m. on December 13, 2022.
This case was the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Jordan L. Sing and former Assistant U.S. Attorney David J. MacLaughlin prosecuted the case.
Saint Paul Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
ST PAUL, Minn. – A Saint Paul man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on July 28, 2022, Marquese Lamont Redmon, 28, was in possession of a 9mm Smith & Wesson semi-automatic pistol with an extended drum magazine loaded with 43 bullets. Officers with the Minneapolis Police Department responded to a report of shots fired near the downtown Minneapolis intersection of 1st Avenue North and 4th Street North. Police reviewed surveillance footage before and after the reported gunfire and observed Redmon holding the firearm before and after the incident. The surveillance footage also showed Redmon exiting an SUV after the reported gunfire, being handed the gun from the driver of the SUV, after which Redmon ran a short distance away and discarded the gun. Because he has multiple prior felony convictions in Ramsey County, Redmon is prohibited under federal law from possessing firearms or ammunition at any time.
Redmon pleaded guilty yesterday in U.S. District Court before Judge Eric C. Tostrud to one count of felon in possession 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 and the Minneapolis Police Department.
Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Beltrami County Man Sentenced to 12 Years in Prison for Methamphetamine TraffickingRead the Press Release
ST. PAUL, Minn. – A Beltrami County man has been sentenced to 144 months in prison followed by five years of supervised release for his role in a methamphetamine trafficking conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, in September 2019 law enforcement commenced an investigation of a drug trafficking organization distributing significant quantities of methamphetamine in northern Minnesota. As part of this investigation, police conducted a traffic stop in Park Rapids of a tow truck being operated by Trent Michael Holden, 52, of Solway on February 16, 2020. A search of the tow truck revealed one pound of methamphetamine, $34,852, and a firearm. Holden was arrested but later released from custody. On March 27, 2020, officers observed Holden returning to Bemidji from the Twin Cities where he was suspected of meeting with his drug source of supply. Officers stopped Holden, who appeared to be intoxicated, and recovered from his vehicle five pounds of methamphetamine, 21 MDMA pills, a firearm, a box of ammunition, and $4,096 in cash. Holden was charged in state court and later released from custody. On September 28, 2021, officers observed Holden driving a tow truck and hauling a Dodge Neon. A subsequent search of the tow truck and the Dodge Neon revealed approximately 2.8 pounds of methamphetamine and $4,010 in cash.
Holden was sentenced yesterday in U.S. District Court before Judge Wilhelmina M. Wright. On May 11, 2022, Holden pleaded guilty to one count of conspiracy to distribute methamphetamine.
This case was the result of an investigation conducted by the Paul Bunyan Drug Task Force, FBI Headwaters Safe Trails Task Force, Hubbard County Sheriff’s Office, Beltrami County Sheriff’s Office, Minnesota State Patrol, Minnesota Bureau of Criminal Apprehension, and U.S. Customs and Border Protection.
Assistant U.S. Attorney Andrew S. Dunne prosecuted the case.
Minneapolis Felon Charged with Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged in a federal criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 28, 2022, Minneapolis Police officers responded to a call that a person at 19 Bar, located near downtown Minneapolis, had pulled out a gun after being asked to leave. When officers arrived, several people pointed at a man, who was later identified as Conell Walter Harris, 29. Harris resisted arrest and tried to reach into the pocket of his hooded sweatshirt. Officers recovered a stolen .45 caliber Glock model 30 pistol from Harris’ pocket. Officers spoke to bar employees and customers and learned that Harris had become upset after an employee asked to see his identification, which Harris refused to show. The employee then asked Harris to leave the bar. Harris became combative and pulled out a pistol. An employee attempted to deescalate the situation but Harris became more aggressive and made multiple threatening statements. Harris then left for a short time but returned to the bar before law enforcement arrived.
Harris is charged in a criminal complaint with felon in possession of a firearm. He made his initial appearance today in U.S. District Court before Magistrate Judge Tony N. Leung. Harris was ordered to remain in custody pending a formal detention hearing scheduled for December 5, 2022.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorney Samantha H. Bates 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.
Chanhassen Psychologist Pleads Guilty to Health Care FraudRead the Press Release
ST. PAUL, Minn. – A Chanhassen psychologist has pleaded guilty to fraudulently billing for counseling services never actually rendered, announced United States Attorney Andrew M. Luger.
According to court documents, Charles Howard Jorenby, 57, was a licensed psychologist and owner of Life Dynamics, Inc., a counseling center located in Prior Lake. From January 2013 through February 2020, Jorenby orchestrated a scheme to defraud Blue Cross Blue Shield Minnesota (BCBS) and the Shakopee Mdewakanton Sioux Community (SMSC), which is responsible for funding the account that BCBS draws from to pay health care costs for tribal members. Jorenby submitted fraudulent bills to BCBS for counseling services he claimed to have provided to at least 29 SMSC members. In reality, Jorenby never provided counseling services to those individuals, and he used their names and dates of birth without their knowledge or permission. As a result of his false billing practices, SMSC suffered a loss of at least $555,000.
As part of his guilty plea, Jorenby also admitted that in 2017, he submitted an additional fraudulent insurance claim to State Farm Insurance following a fire at his business office. In that claim, Jorenby knowingly provided false information regarding lost income, inflating his claimed income to include earnings associated with his fraudulent BCBS billings. Jorenby received a settlement of $104,930, all or part of which is a product of his misrepresentation.
Jorenby pleaded guilty on November 29, 2022, before Senior Judge Susan Richard Nelson to one count of health care fraud. A sentencing hearing has been scheduled for April 27, 2023.
This case was the result of an investigation conducted by Homeland Security Investigations and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
North Dakota Felon Charged with Threatening to Murder a United States OfficialRead the Press Release
MINNEAPOLIS – A North Dakota man has been charged in a criminal complaint with threatening to murder a United States official, announced U.S. Attorney Andrew M. Luger.
According to court documents, on September 14, 2018, Robert Philip Ivers, 69, of West Fargo, North Dakota, was convicted by a federal jury of threatening to murder a federal judge and interstate transmissions of threats and was sentenced to a prison term of 18 months, followed by three years of supervised release. On August 1, 2019, Ivers was released from Bureau of Prisons custody and began his term of supervised release under the supervision of a Unites States Probation Officer.
According to court documents, on September 1, 2020, Ivers left a profanity-laced voicemail on his probation officer’s telephone, which constituted a violation of the terms of Ivers’ conditions of supervised release. On November 17, 2022, during a revocation hearing, Ivers was sentenced to additional prison time and additional supervised release time. The conditions of Ivers’ supervised release included the immediate surrender his Minnesota driver’s license, and that he maintain appropriate communication with probation officers. At the conclusion of the hearing, Ivers was escorted to an interview room where he quickly became agitated and pounded his fists on a table, broke a chair leg, and threw his paperwork while continuously screaming the word “hate.” When Ivers left the room, he extended his middle fingers at one of the probation officers and yelled “I’m going to get some [expletive] to [expletive] kill you!”
Ivers is charged with one count of threatening to murder a United States official. He is scheduled to make his initial appearance later today in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by the United States Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys Lisa M. Kirkpatrick and Allison K. Ethen.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Felon Sentenced to 10 Years in Prison for Making Threats Against Hennepin County Government Officials, Illegal Possession of FirearmsRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 120 months in prison followed by three years of supervised release for making threats against Hennepin County employees and illegally possessing a firearm as a felon, announced United States Attorney Andrew M. Luger.
According to court documents, on June 24, 2021, the Hennepin County District Court issued an arrest warrant for Peter Robert Berry, 60, after he failed to appear in court for a hearing. Berry called an employee of Hennepin County Community Corrections to ask questions about his court appearance. During the call Berry became angry and began yelling and threatened to “shoot up the place.” That same day, Berry left a voice message for a Hennepin County Probation Officer in which Berry demanded a call back before he starts “killing everybody.” On June 25, 2021, Berry called a Hennepin County Service Center employee who informed him of the active warrant for his arrest due to his failure to appear in court. Upon learning about the warrant, Berry stated that he was going to “come down and kill everybody, all the judges, clerks, and deputies.” On June 29, 2021, Berry left a voice message for a Hennepin County Public Defender in which Berry expressed his dissatisfaction with the representation he received in his criminal case and threatened that people were going to die and stated that he knew where the public defender lived.
According to court documents, on July 10, 2020, and on April 7, 2021, Berry unlawfully possessed three firearms, including a Beretta .25 caliber semi-automatic pistol, a Smith and Wesson 9 mm pistol, and a Diamondback DB15 rifle. Because Berry has prior felony convictions in Hennepin, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
Berry was sentenced today in U.S. District Court before Judge Eric C. Tostrud. On June 22, 2022, Berry pleaded guilty to one count of possessing a firearm as a felon and one count of interstate transmission of a threat.
This case is the result of an investigation conducted by the FBI, the Hennepin County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen prosecuted the case.
Wisconsin Man Indicted for $35 Million Bank Fraud SchemeRead the Press Release
MINNEAPOLIS – A Wisconsin man has been indicted for orchestrating a $35 million bank fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, between 2020 and August 2022, Matthew Thomas Onofrio, 31, of Eau Claire, devised and executed a scheme to defraud multiple federally-insured banks including MidCountry Bank headquartered in Bloomington. As part of his scheme, Onofrio operated a business entity called Northwoods Management LLC which he used to market a real estate investing program for investors to acquire commercial properties. Onofrio allegedly engaged in several fraudulent acts as part of the scheme, including causing false information to be submitted to lenders financing investors’ real estate purchases and altering purchase agreements to support higher appraisals of the properties. According to the indictment, Onofrio withheld information from the lenders, including the fact that he was lending money to the investors to help them purchase the properties and would temporarily wire funds to investors’ accounts to create the appearance that they had more available assets than they in fact had. The charges seek forfeiture of more than $35 million seized in the investigation.
Onofrio is charged with three counts of bank fraud. On November 23, 2022, Onofrio made his initial appearance in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by the FBI, the IRS, and the Federal Deposit Insurance Corporation – Office of Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Thai Woman Pleads Guilty to Her Role in International Sex Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. – Sumalee Intarathong has pleaded guilty to her role in a large-scale international Thai sex trafficking organization, announced United States Attorney Andrew M. Luger.
“Today’s guilty plea marks the final conviction in a years-long international sex trafficking prosecution resulting in 37 convictions,” said U.S. Attorney Andrew M. Luger. “Ms. Intarathong, worked directly with others at the highest levels in the organization to victimize hundreds of vulnerable women for her own financial gain.”
According to court documents, the criminal organization conspired to make money by compelling hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, Intarathong, 61, served as a boss/trafficker for the organization. Each trafficked victim was “owned” by Intarathong or another boss/trafficker, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. Intarathong and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.
According to court documents, Intarathong and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.
According to court documents, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere.
“I’m proud of the HSI agents and law enforcement partners who helped bring Intarathong to justice,” said HSI Saint Paul Special Agent in Charge Jamie Holt. “Intarathong’s heinous acts victimized countless individuals and their families. HSI will continue the work necessary to dismantle and destroy these human trafficking organizations while providing care and support to the victims.”
“For more than seven years, Ms. Intarathong had been responsible for sex trafficking across the nation,” said Justin Campbell, IRS CI Special Agent in Charge, Chicago Field Office. “And like many criminals she tried to hide her ill-gotten gains through legitimate purchases – such as vehicles and real estate. Fortunately for American taxpayers, IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds.”
Intarathong was arrested in Belgium in August 2016 and remained in custody until she was extradited to the United States in February 2021. Intarathong pleaded guilty earlier today before Senior Judge Donovan W. Frank to one count of conspiracy to commit sex trafficking and one count of conspiracy to engage in money laundering. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office, and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.
Red Lake Man Sentenced to 12 Years in Prison for MurderRead the Press Release
MINNEAPOLIS – A Red Lake man has been sentenced to 144 months in prison followed by three years of supervised release for a 2020 murder that took place on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on September 12, 2020, Ralph Edward Cloud, Jr., 38, killed his cousin, Allen Smith, in Smith’s home. Concerned about a relationship between his wife and Smith, Cloud walked several miles to Smith’s residence and attacked him, using a metal cabinet and its drawers to beat Smith to death.
Cloud was sentenced today in U.S. District Court before Senior Judge Michael J. Davis. On July 14, 2022, Cloud pleaded guilty to one count of murder in the second degree.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorneys Emily A. Polachek and Deidre Y. Aanstad prosecuted the case.
Minneapolis Tax Preparer Pleads Guilty to Tax CrimesRead the Press Release
MINNEAPOLIS– A Minneapolis tax preparer has pleaded guilty to federal tax violations, announced United States Attorney Andrew M. Luger.
According to court documents, Sue Yang, 48, of Circle Pines, operated a tax preparation business in Minneapolis. Yang participated in the IRS’s e-file program, a specialized program the IRS offers to qualified tax preparers, and was assigned a unique Electronic Filing Identification Number (known as an “EFIN”). In 2010, the IRS conducted a periodic suitability review of Yang and found that he failed to file a 2009 personal income tax return and that he owed substantial federal income taxes from tax years 2005 through 2008. The IRS notified Yang repeatedly that his failure to resolve his tax obligations would result in sanctions, including suspension of his EFIN or his expulsion from the IRS e-file program. In August 2012 Yang was suspended from the IRS e-file program and was no longer authorized to electronically file tax returns.
From August 2012 through April 2022, despite his suspension from the e-file program, Yang operated surreptitiously as an e-filing tax preparer. Yang disguised his unauthorized participation in the e-file program by enlisting others to obtain unique EFINs, which Yang then used to file thousands of tax returns electronically on behalf of his customers. These tax returns were electronically transmitted to the IRS purporting to have been prepared by other individuals. From 2012 through 2020, Yang impeded the IRS’s suitability review and circumvented his e-file suspension by electronically filing more than 26,000 tax returns using misappropriated EFINs.
From 2018 through 2021, Yang received approximately $765,000 in compensation from working as a tax preparer but, in order to further obscure his unauthorized conduct, he did not report any income related to his tax preparation business. Yang’s unlawful conduct resulted in a combined federal tax loss of approximately $214,297.
Yang pleaded guilty today before Judge Eric C. Tostrud to one count of filing a false federal income tax return and one count of corruptly impeding and obstructing the administration of the internal revenue laws. A sentencing hearing has not yet been scheduled.
This case was jointly investigated by IRS – Criminal Investigations and the Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
Kansas Man Sentenced to More Than Six Years in Prison for Armed Robbery of West St. Paul MenardsRead the Press Release
MINNEAPOLIS – A Kansas man was sentenced to 77 months in prison followed by three years of supervised release for an early morning armed robbery of a Menards store in West St. Paul, announced United States Attorney Andrew M. Luger.
According to court documents, on September 27, 2021, Cornelius Graham, 61, of Kansas City, Kansas, went to the Menards store in West St. Paul and hid inside the store until it closed. Early on the morning of September 28, 2021, Graham confronted the store manager as he was opening the store for the day. Graham brandished a firearm and took cash from the store manager.
Graham was sentenced yesterday in U.S. District Court before Senior Judge Ann D. Montgomery. On June 1, 2022, Graham pleaded guilty to one count of interference with commerce by robbery. Because Graham was on supervised release for separate robbery convictions in the District of Kansas, Graham received an additional sentence of 23 months, increasing his total sentence to 100 months in prison.
This case was the result of an investigation conducted by the FBI and the West St. Paul Police Department.
Assistant U.S. Attorney David P. Steinkamp prosecuted the case.
Woodbury Felon Arrested, Charged with Illegal Possession of FirearmRead the Press Release
MINNEAPOLIS – A federal criminal complaint has been filed against a Woodbury man charging him with illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on October 18, 2022, law enforcement observed what appeared to be a narcotics transaction between Jason Steven Kearns, 38, and the occupant of a vehicle parked outside of Kearns’s Woodbury residence. Law enforcement initiated a traffic stop of the vehicle, searched it, and found approximately one half-pound of methamphetamine. Following the traffic stop, law enforcement obtained and executed a search warrant at Kearns’s home. As officers approached the residence, Kearns fled on a motorcycle, carrying what appeared to be a package of methamphetamine in his jacket. Officers attempted to stop Kearns, but he was able to escape. Law enforcement recovered three firearms from the residence.
On November 14, 2022, law enforcement encountered Kearns in the driver’s seat of a truck outside of a restaurant in Woodbury. The officers called for backup and two Woodbury Police squad vehicles arrived and attempted to stop Kearns by activating their lights. One squad vehicle stopped in front of Kearns’s truck and the other approached from the side. Kearns accelerated his truck forward, ramming the police vehicle head-on. Kearns reversed his truck and drove into a curb and was pinned by the two police vehicles. Kearns exited his vehicle and ran from officers on foot to a parking lot across the street. Officers saw that Kearns had his right hand on what appeared to be a semiautomatic pistol. Officers drew their firearms and issued multiple commands to Kearns to drop his firearm. Kearns continued walking through the parking lot and then stopped and knelt down, still refusing to drop the firearm. Kearns stated to officers that he had a firearm in his hand. Eventually, Kearns dropped the firearm and surrendered and was taken into custody. The firearm, a Smith & Wesson 9mm semiautomatic pistol, was loaded with a round chambered and 11 rounds in the magazine. Kearns was also carrying a large knife on his person. After searching Kearns’s truck, officers recovered quantities of methamphetamine, hypodermic needles, and a digital scale.
Because Kearns has multiple prior felony convictions including assault and armed robberies, he is prohibited under federal law from possessing firearms or ammunition at any time.
Kearns is charged with one count of possession of firearms as a felon. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Tony N. Leung. He was ordered to remain in custody pending a formal detention hearing on November 28, 2022.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington County Drug Task Force, and the Woodbury Police Department.
Assistant U.S. Attorneys Emily A. Polachek and Thomas Calhoun-Lopez are 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.
Twin Brothers Plead Guilty to Illegal Possession of a Firearm, AmmunitionRead the Press Release
MINNEAPOLIS –Twin brothers Quantez Demarco Ward and Cortez Demario Ward, age 19, have pleaded guilty to illegal possession of a firearm and illegal possession of ammunition, respectively, announced United States Attorney Andrew M. Luger.
According to court documents, in January of 2022, the brothers were both charged in Hennepin County District Court for possession of machineguns after they were caught in possession of firearms that had each been modified with auto sears. An auto sear, also known as a switch, is a device used to convert a semi-automatic firearm into a fully automatic firearm and is considered a machinegun under federal law. In May, both Cortez and Quantez Ward pleaded guilty to their Hennepin County charges and were released on terms of probation.
On May 6, 2022, the brothers were pulled over by the Maple Grove police department. During that traffic stop, Cortez Ward was in possession of a Polymer 80 pistol with an extended magazine loaded with 19 rounds of ammunition on his person. On July 19, 2022, law enforcement executed a federal arrest warrant at the Ward brothers’ residence. Inside, law enforcement found multiple firearms, including a 9mm Ruger rifle, a H&K .22 caliber rifle and a Pioneer 7.26 mm Pistol.
Yesterday, Quantez Ward pleaded guilty in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of possession of a firearm as a felon related to the firearms recovered on July 19, 2022. On October 25, 2022, Cortez Ward pleaded guilty in U.S. District Court before Senior Judge David S. Doty to one count of possession of ammunition as a felon arising from the May 6, 2022, traffic stop. Sentencing dates 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 (ATF), the Minneapolis Police Department, and the Maple Grove Police Department.
These cases are being prosecuted by Assistant U.S. Attorney Lindsey Middlecamp.
Federal Jury Convicts Olmsted County Man for Drug Trafficking Conspiracy and Possession of Cocaine with Intent to DistributeRead the Press Release
MINNEAPOLIS – A federal jury convicted an Olmsted County man for conspiring to distribute controlled substances and for possession with intent to distribute cocaine after being arrested with four kilograms of cocaine in his rental car, announced United States Attorney Andrew M. Luger.
Following a four-day trial before U.S. District Judge Nancy E. Brasel, Christopher Allen Edwards, 39, was convicted on November 17, 2022, of one count of conspiracy to distribute controlled substances, specifically, cocaine, heroin, fentanyl, and methamphetamine, and one count of possession with intent to distribute cocaine. A sentencing hearing will be scheduled at a later time.
According to the evidence presented at trial, in early 2021, law enforcement received information that Edwards was dealing drugs in the Rochester area. Law enforcement determined that Edwards and his co-conspirator, Chloe Michelle Johnson, 25, were dealing a variety of drugs throughout Rochester and Southeastern Minnesota, from May 2021 through October 16, 2021, the date of their arrest.
In October 2021, law enforcement tracked Edwards’ rental vehicle as he traveled to Austin, Texas, and back to Minnesota in a quick turnaround road trip. On October 16, 2021, law enforcement stopped Edwards and Johnson in Edwards’ rental car once they drove back into Olmsted County. Edwards was caught with four kilograms of cocaine in his backpack in his rental car. That same day, law enforcement executed search warrants on Edwards’ and Johnson’s residences and found various amounts of cocaine packaged for distribution, heroin, fentanyl, and methamphetamine.
On May 12, 2022, Johnson pleaded guilty to her role in the drug trafficking conspiracy. She is scheduled to be sentenced on February 9, 2023.
This case is the result of an investigation conducted by the Olmsted County Sheriff’s Office, the Southeast Minnesota Violent Crime Enforcement Team, and the Drug Enforcement Administration.
Assistant U.S. Attorney Nathan H. Nelson and Special Assistant U.S. Attorney Hillary A. Taylor tried the case.
Rochester Drug Trafficker Pleads Guilty to Methamphetamine Distribution ConspiracyRead the Press Release
MINNEAPOLIS- A Rochester drug trafficking ringleader has pleaded guilty to conspiracy to distribute methamphetamine, announced U.S. Attorney Andrew M. Luger.
According to cour documents, from September 2021 through February 2022, Jerry Lee Milliken, 40, led a large-scale methamphetamine trafficking conspiracy that was based in Rochester, Minnesota and operated throughout southeastern Minnesota and elsewhere. Milliken organized the delivery of methamphetamine from a supplier in Kansas City, Missouri, to sub-distributors in the Rochester area. Milliken also collected and received drug proceeds and facilitated communications in support of the conspiracy. Between the fall of 2021 and the winter of 2022, law enforcement seized approximately 80 pounds of methamphetamine from the conspiracy during various enforcement operations.
Milliken pleaded guilty yesterday in U.S. District Court before Senior Judge Susan Richard Nelson to one count of conspiracy to distribute methamphetamine. He faces a mandatory minimum sentence of 10 years and up to life in prison. A sentencing hearing will be scheduled at a later time.
Aaron Raymond Dombovy, 30, one of Milliken’s coconspirators, pleaded guilty Wednesday, November 16, also to one count of conspiracy to distribute methamphetamine. He also faces a mandatory minimum sentence of 10 years and up to life in prison.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Rochester Police Department, the Minnesota Bureau of Criminal Apprehension, the Southeast Minnesota Violent Crimes Enforcement Team, and the Olmsted County Sheriff’s Office.
Assistant U.S. Attorney Allen A. Slaughter Jr. is prosecuting the case.
Blaine Felon Arrested, Charged with Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Blaine man has been arrested and charged in a federal criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on August 10, 2022, at approximately 1:26 p.m., deputies with the Anoka County Sheriff’s Office responded to a residential burglary in Ham Lake. A video surveillance system at the residence showed a man, later identified as Carson Thomas McCoy, 21, pried open the front door of the residence and later sped away in a stolen black BMW sedan. Among the items stolen from the residence were a Springfield Armory .45 caliber handgun, two loaded ammunition magazines, and $1,500 in cash.
According to court documents and a law enforcement affidavit, less than 30 minutes later, the Anoka County Sheriff’s Office received reports of an incident involving shots fired around Lexington Avenue NE and 155th Avenue NE in Ham Lake. It was reported that a black BMW sedan nearly collided with three people riding motorcycles. Someone in the BMW then held a handgun out of the BMW's sunroof and fired several shots at the three people on the motorcycles. Shortly thereafter, law enforcement located the BMW and attempted to stop the vehicle, but it fled before eventually crashing into an Anoka County Sheriff’s Office patrol vehicle. The driver, McCoy, and a female passenger were taken into custody. Following a search of the BMW, law enforcement recovered the Springfield Armory handgun previously stolen from the residence, a Bersa .380 caliber handgun, narcotics, $851 in cash, and a false identification card.
According to court documents and a law enforcement affidavit, on July 19, 2022, McCoy used the false identification card at car dealership in Eden Prairie to arrange a test drive of the stolen black BMW sedan and then never returned the car.
McCoy is charged with one count of possession of a firearm as a felon. He appeared yesterday in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright and was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Blaine Police Department, and the Anoka County Sheriff’s Office.
Assistant U.S. Attorney Jordan L. Sing 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.
Rochester Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Rochester man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on May 25, 2022, Marcus Anthony Jackson, 49, was in possession of a Taurus G2C 9MM pistol. Officers with the Rochester Police Department executed a search warrant at Jackson’s residence in Rochester. At the beginning of the search, Jackson indicated there were no firearms present. However, as an officer began to search above the kitchen cabinets, Jackson informed the officer that he had a gun above the refrigerator. Because he has multiple prior felony convictions in Olmsted, Ramsey and Hennepin Counties, Jackson is prohibited under federal law from possessing firearms or ammunition at any time.
Jackson pleaded guilty yesterday in U.S. District Court before Senior Judge Joan N. Erickson to one count of felon in possession 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 and the Rochester Police Department.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
Stearns County Man Sentenced to More Than 21 Years for Leading a Meth Trafficking Conspiracy While IncarceratedRead the Press Release
MINNEAPOLIS – A Stearns County man was sentenced to 262 months followed by five years of supervised release for conspiring to distribute methamphetamine while incarcerated, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at his trial, in spring 2019, Robert Edward Maloney, Jr., 39, while incarcerated in a Minnesota state prison, coordinated with others outside the prison to sell methamphetamine. While Maloney was incarcerated, he communicated with his co-conspirators via jail calls. Law enforcement agents obtained recordings of Maloney’s jail calls, which revealed Maloney’s direction and coordination, including arranging meetings and discussing methamphetamine prices and quantities. Maloney also obstructed justice by threatening a witness.
Maloney was sentenced yesterday before Senior Judge David S. Doty. On April 8, 2022, after a four-day jury trial, Maloney was found guilty of conspiring to distribute methamphetamine.
This case was the result of an investigation conducted by the FBI Safe Streets Task Force, the Minnesota Bureau of Criminal Apprehension, the Cannon River Drug & Violent Offender Task Force, the Paul Bunyan Drug Task Force, and the Minnesota Department of Corrections.
This case was prosecuted by Assistant U.S. Attorneys Bradley M. Endicott and Joseph S. Teirab.
Minneapolis Woman Indicted for Orchestrating Multimillion-Dollar Accounts Receivable Factoring Scheme, PPP Loan FraudRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Minneapolis woman for orchestrating an accounts receivable factoring fraud scheme and a PPP loan fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, Khemwattie Singh, 52, was the chief executive officer of Global Medical Services, a Minnesota-based healthcare solutions company. Between June and October 2018, Singh and others entered into factoring contracts with MD Capital Solutions, a Florida-based investment company, to purchase the accounts receivable of Global Medical Services and Minnesota International Medicine for more than $2.6 million. Factoring is a form of short-term financing in which a business sells its accounts receivable to a third-party at a discount.
According to court documents, Singh defrauded MD Capital Solutions by failing to pay over the receivables as they were collected and falsely represented to MD Capital Solutions that no funds had been received. Instead, Singh pocketed the money, wiring more than $5 million overseas to bank accounts in Morocco and shell companies she controlled.
According to court documents, in September 2019, MD Capital Solutions sued Global Medical Services in state court in Minnesota and Florida. By the end of 2019, Global Medical Services shut down and no longer had any employees on its payroll. In April 2020, Singh submitted a false and misleading application for Paycheck Protection Program (PPP) funds in the name of Global Medical Services seeking approximately $383,408. Despite the fact that Global Medical Services was not operational, Singh falsely stated on the application that the average monthly payroll was $153,363 and that the company had approximately 40 employees. As a result of Singh’s material falsehoods and omissions, she received approximately $296,800 in PPP funds. Singh transferred $116,600 to her personal bank account and used the funds to pay for personal expenses, including a home loan and credit card payments.
Singh is charged with seven counts of wire fraud. She made her initial appearance in U.S. District Court yesterday before Magistrate Judge Elizabeth Cowan Wright.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Chelsea A. Walcker 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.
Duluth Felon Indicted for Federal Firearm ViolationRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Duluth man for possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on September 11, 2022, Joseph Francis Butler, 32, entered a gas station in Duluth and argued with the store clerk over change from a transaction. Butler then walked behind the counter and punched the clerk. During the scuffle, a Springfield, model XD, .45 caliber pistol fell out of Butler’s waistband. Butler picked up the firearm, pointed it at the victim, and fired several times. The victim was not directly hit by the rounds but suffered powder burns and a graze wound. Butler then fled the store. Butler was eventually apprehended in Bloomington with the same firearm.
Because Butler has multiple prior felony convictions in Cook County, Illinois, he is prohibited under federal law from possessing firearms or ammunition at any time.
Butler is charged with one count of possessing a firearm as a felon. He previously made his initial appearance on a related complaint before Magistrate Judge Leo. I Brisbois in Duluth.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Duluth Police Department and the Bloomington Police Department.
Assistant U.S. Attorneys Alexander D. Chiquoine and Esther Soria Mignanelli 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.
Maplewood Man Pleads Guilty to Illegal Possession of an Unregistered Pipe BombRead the Press Release
MINNEAPOLIS – A Maplewood man has pleaded guilty to illegal possession of a pipe bomb, announced U.S. Attorney Andrew M. Luger.
According to court documents, on April 28, 2022, law enforcement executed a search warrant at the Maplewood residence of Dylan Raymond Orr, 27, after discovering photos of two pipe bombs sent from Orr’s phone to a third-party. The images showed that there were small BBs affixed to the exterior casing of the pipe bombs. During the execution of the search warrant, law enforcement discovered two six-inch pipes – one with BBs affixed, 4 end caps, and explosive powder, components which could be readily converted to a destructive device. Orr did not have a registration to possess these devices from the National Firearms Registration and Transfer Record as required by law.
Orr pleaded guilty today before U.S. District Judge Nancy E. Brasel to one count of possession of an unregistered destructive device. 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 and the Savage Police Department.
Assistant U.S. Attorney LeeAnn K. Bell is prosecuting the case.
Brooklyn Park Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A Brooklyn Park man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 27, 2022, Tyrone Mashaun White, 34, was in possession of a Springfield Hellcat 9mm semi-automatic pistol while driving in Brooklyn Center. Officers of the Minneapolis Police Department found the firearm when they searched White’s vehicle pursuant to a search warrant. Officers also recovered from the vehicle a black bag containing a pill bottle with eight methamphetamine pills, and baggies of fentanyl with a total weight of approximately 2.5 grams. Because White has multiple prior felony convictions in Hennepin and Goodhue Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
White pleaded guilty today before U.S. District Judge Wilhelmina M. Wright to one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and Minneapolis Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
Minneapolis Felon Sentenced to 10 Years in Prison for Possession of a Stolen FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man was sentenced today to 120 months in prison followed by three years of supervised release for possessing a stolen firearm, announced United States Attorney Andrew M. Luger.
According to court documents, on August 27, 2021, Michael James Jackson, 39, was speeding through red lights in a vehicle with his girlfriend in North Minneapolis when officers with the Minneapolis Police Department spotted and pursued the speeding vehicle. Jackson abandoned the vehicle and fled on foot while his girlfriend remained in the front passenger seat on the side of the road. Jackson fired 15 shots into the air from a stolen Smith & Wesson .40 caliber semi-automatic pistol approximately 50 yards from the stopped vehicle and the responding officers.
Prior to August 27, 2021, Jackson had been convicted of several felonies, including terroristic threats, aggravated robbery, and assault.
On July 8, 2022, Jackson pleaded guilty before Senior Judge Michael J. Davis to one count of possession of a stolen firearm.
This case was the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Chelsea A. Walcker prosecuted the case.
Hennepin County Man Sentenced to 9.5 Years in Prison for Violent Armed CarjackingRead the Press Release
MINNEAPOLIS – A Hennepin County man has been sentenced to 115 months followed by five years of supervised release for a violent armed carjacking, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 5, 2021, Jerome Lee Swanson, 21, approached an individual who was driving a 2005 Buick LaCrosse in Minneapolis. Swanson asked for a ride to a nearby location and,. when the victim and Swanson arrived, Swanson pulled out a pistol and pointed it at the victim, and demanded they give Swanson the vehicle. A struggle ensued and the victim was shot in the hip. Swanson fled from the scene driving the victim’s vehicle. Swanson was later apprehended with the vehicle and the pistol used to facilitate the carjacking.
Swanson pleaded guilty on July 8, 2022, before U.S. District Chief Judge John R. Tunheim to one count of carjacking and one count of brandishing a firearm during and in relation to a crime of violence.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department
Assistant U.S. Attorney David P. Steinkamp prosecuted the case.
Bloomington Man’s Guilty Plea Marks 16th Felony Conviction in Two Medicaid Fraud Conspiracies that Totaled over $5.4 Million in Fraudulent BillingRead the Press Release
ST. PAUL, Minn. – A Bloomington man has pleaded guilty to his role in a $1.4 million Medicaid fraud conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, Abdirahman Yonis, 35, was a mental health practitioner who worked with Minnesota Multicultural Counseling Clinic, a clinic with offices in St. Paul, Brooklyn Park, and Roseville. As part of the scheme, Yonis and his co-conspirators knowingly prepared and signed client progress notes for mental health services—and related interpreter verification forms—that were not actually rendered and submitted claims to the Minnesota Medicaid program for reimbursement of mental health services and the related interpretation of those services. As a result of the false and fraudulent claims, the Medicaid program paid more than $1.4 million for services that never occurred.
Yonis pleaded guilty yesterday before U.S. District Judge Eric C. Tostrud to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
In 2021, the United States Attorney’s Office charged two separate cases (21-cr-56 and 21-cr-57) that involved over $5.4 million in fraudulent Medicaid billing for mental health services and the purported interpretation of those services. Since that time, 15 defendants have pleaded guilty, one has been convicted at trial, and three remain fugitives from law enforcement. The convicted defendants will be required to pay restitution to the Medicaid program for the amounts paid out on their fraudulent billing practices.
This case is the result of an investigation conducted by the FBI; the U.S. Department of Health and Human Services, Office of Inspector General; and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.
Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing are prosecuting the case.
St. Paul Man Sentenced to More Than 23 Years in Prison for Methamphetamine Trafficking and Firearms ViolationsRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 280 months prison followed by five years of supervised release for methamphetamine trafficking and firearms violations, announced U.S. Attorney Andrew M. Luger.
On June 16, 2022, following a three-day trial before U.S. District Judge Nancy E. Brasel, William Howard Proto Jr., 45, was convicted on two counts of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking, and one count of possessing a firearm as a felon. During the trial, Proto pleaded guilty to one count of possessing a firearm as a felon.
According to court documents, on June 29, 2021, officers with the Bloomington Police Department arrested Proto after he was found in the driver’s seat of a stolen Cadillac Escalade. Officers searched the vehicle and found nine pounds of methamphetamine, 200 grams of cocaine, digital scales, more than $50,000 in cash, and a loaded firearm. Following his arrest, Proto was indicted in U.S. District Court on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm as a felon.
On August 19, 2021, pursuant to a federal warrant, agents located Proto at a hotel in Woodbury, Minnesota. Officers arrested Proto as he was wheeling a luggage cart in the parking lot towards his SUV. On the luggage cart in a black duffle bag, officers found five pounds of methamphetamine, $5,000 in cash, an assault style rifle, and loaded magazines. Proto also had a loaded 9-mm handgun in his pocket. Officers searched Proto’s SUV and found additional ammunition.
This case was the result of an investigation conducted by the Drug Enforcement Administration and the Bloomington Police Department.
Assistant U.S. Attorneys Andrew S. Dunne, Joseph S. Teirab, and Ruth Shnider prosecuted the case.
Plymouth Woman Pleads Guilty for her Role in $250 Million Scheme to Defraud the Federal Child Nutrition Program and Separate $4 Million Medicaid Fraud SchemeRead the Press Release
ST. PAUL, Minn. – A Plymouth woman has pleaded guilty to her role in two separate fraud cases, including the $250 million fraud scheme that exploited a federally-funded child nutrition program and a Medicaid fraud scheme, announced United States Attorney Andrew M. Luger.
According to court documents, Anab Artan Awad, 52, admitted that from September 2020 through January 2022, she knowingly participated with others in a fraudulent scheme to obtain and misappropriate millions of dollars in Federal Child Nutrition Program funds that were intended as reimbursements for the cost of serving meals to children.
According to her guilty plea, Awad used a non-profit entity called Multiple Community Services to carry out her scheme. Through Multiple Community Services, Awad controlled purported Federal Child Nutrition Program food distribution sites in Osseo, Minneapolis and Faribault, under the sponsorship of Sponsor A. As a food site operator, Awad was responsible for serving actual food to children through the Federal Child Nutrition Program. However, in furtherance of the scheme, Awad received Federal Child Nutrition Program funds based upon fraudulent information, such as falsified invoices and meal count records with substantially inflated figures. Awad received Federal Child Nutrition Program funds that substantially exceeded the amounts of food that she either purchased or served to children.
According to her guilty plea, one of Awad’s Minneapolis sites fraudulently claimed to have served more than 1.5 million meals to children from January 2021 to April 2021, which amounts to approximately 12,600 meals to children daily. In reality, Awad’s operations at that location served a fraction of the meal amounts claimed. Also, despite Awad’s claims, the purported food vendor for her location, in fact, did not provide food during the time period claimed. In addition, none of the names on the attendance rosters submitted for “Golden Meadows,” which was one of Awad’s food sites in Faribault, matched the names of actual children enrolled in the Faribault School District.
It was further part of the scheme that Awad received fraudulent proceeds from the Federal Child Nutrition Program into accounts that she controlled, which included, among other deposits, approximately $3.7 million directly from Sponsor A, and approximately $3 million from a purported vendor that, in fact, provided no food to Awad.
In total, Awad fraudulently claimed $11,237,106.41 in Federal Child Nutrition Program funds, of which the Minnesota Department of Education paid out $9,668,384.09. In all, Awad and her purported vendors obtained $9,333,858.24 in fraud proceeds for herself and others.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations and the U.S. Postal Inspection Service.
This case is being proseucted by Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Awad also pleaded guilty today in a separate case to one count of conspiracy to commit wire fraud. According to court documents, from April 2015 through July 2016, Awad worked as an interpreter for A-Z Friendly Languages and Itasca Interpretation Services, both companies were approved providers that billed services to the Minnesota Medicaid program. In this role, Awad conspired with mental health practitioners at Minnesota Multicultural Counseling and Consultant (MMCC) to sign billing forms for mental health and related interpretation services that were not provided. Awad’s fraudulent claims caused a $99,154 loss to the Minnesota Medicaid program as part of the broader $4 million scheme to defraud, executed by MMCC and its associated interpreters. Awad transitioned to her scheme to defraud the Federal Child Nutrition Program from September 2020 through January 2022 while awaiting trial for her fraudulent billing practices as an interpreter for MMCC.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Health and Human Services Office of the Inspector General and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.
This case is being prosecuted by Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing.
Awad pleaded guilty today in U.S. District Court before Judge Eric E. Tostrud to one count of wire fraud in the first case and one count conspiracy to commit wire fraud in the second case. A sentencing hearing will be scheduled at a later time.
Minneapolis Woman Indicted for Her Role in a Drug Money Laundering ConspiracyRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Minneapolis woman for running a drug money laundering conspiracy on behalf of a large-scale fentanyl and marijuana dealer, announced U.S. Attorney Andrew M. Luger.
According to court documents, between December 2018 and August 2019, Phouvanh Keokaythinh, 36, knowingly conspired with others to conduct financial transactions that involved the proceeds of fentanyl and marijuana trafficking. As part of the conspiracy, Keokaythinh kept large amounts of cash drug proceeds for Lyndon Swarn, a large-scale fentanyl and marijuana dealer, at her family residence in Bloomington. At any given time, Keokaythinh stashed up to $80,000 at the residence. Swarn’s drug income was generated from the production and sale of illegal fentanyl-laced Oxycodone pills, as well as the production and sale of large amounts of marijuana.
According to court documents, Keokaythinh used cash from Swarn’s drug proceeds to purchase a farm property in Ironwood, Michigan. Swarn and his associates used this property to illegally grow large amounts of marijuana. Keokaythinh and others laundered drug proceeds into a bank account owned by L&S Management LLC, a shell company used for the purchase, maintenance, and upkeep of the property in Ironwood. Keokaythinh also directed others to maintain a credit card that was used for Swarn’s personal spending and other expenses related to the drug trafficking conspiracy. Between January 2017 and March 2019, Keokaythinh and others used drug proceeds to make approximately $117,782.72 in payments on the credit card.
According to court documents, on January 31, 2020, Keokaythinh willfully and knowingly made false statements in an application for a passport. In the application, Keokaythinh falsely claimed that she had lost her passport while on a trip to Los Angeles when, in reality, she knew that her passport had been seized by law enforcement on October 23, 2019, during the execution of a search warrant at the Ironwood property.
Keokaythinh is charged with one count of money laundering conspiracy, one count of concealment money laundering, and one count of false statements in application for a passport. She made her initial appearance in U.S. District Court on October 31, 2022, before Magistrate Judge Tony N. Leung.
On June 2, 2022, Swarn was convicted in Hennepin County of aiding and abetting first-degree murder in relation to the New Year’s Eve 2019 kidnapping and murder of a local real estate agent. On May 17, 2021, Swarn was convicted in U.S. District Court for possession with intent to distribute more than 33,000 fentanyl-laced Oxycodone pills.
This case is the result of an investigation conducted by the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, and the Hopkins Police Department, with assistance from the Hennepin County Attorney’s Office.
Assistant U.S. Attorney Harry M. Jacobs 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.
St. Paul Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A St. Paul man has pleaded guilty to possessing a firearm as an Armed Career Criminal, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 17, 2022, Geraldo Jay Dilworth, 34, was in possession of a Springfield Armory .45 caliber pistol while waiting to board a train at the Union Depot Station in St. Paul. Because he has multiple prior felony convictions in Ramsey and Washington Counties, Dilworth is prohibited under federal law from possessing firearms or ammunition at any time.
Dilworth pleaded guilty today before Senior U.S. District Judge Susan Richard Nelson to one count of felon in possession of a firearm as an Armed Career Criminal. He faces a mandatory minimum sentence of 15 years imprisonment. 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 and the St. Paul Police Department.
Assistant U.S. Attorney Lauren O. Roso is prosecuting the case.
Federal Jury Finds Maple Grove Man Guilty of Wire Fraud, Aggravated Identity Theft in $1.4 Million Medicaid Fraud ConspiracyRead the Press Release
ST. PAUL, Minn. - A Maple Grove man has been convicted by a federal jury for his role in a $1.4 million Medicare fraud conspiracy, announced United States Attorney Andrew M. Luger.
Following a four-day trial before U.S. District Judge Eric C. Tostrud, Eskender M. Yousuf, 40, was convicted on all seven counts of the superseding indictment, including conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The charged conspiracy consisted of nine total defendants. Six of Yousuf’s co-conspirators pleaded guilty prior to trial and two remain fugitives from law enforcement.
As proven at trial, Yousuf was a mental health practitioner who worked with Live Better, LLC, a patient services company with offices in Roseville and Minneapolis. As part of the scheme, Yousuf and his co-conspirators knowingly prepared and signed client progress notes for mental health services—and related interpreter verification forms—that were not actually rendered and submitted claims to the Minnesota Medicaid program for reimbursement of mental health services and the related interpretation of those services. As a result of the false and fraudulent claims, the Medicaid program paid more than $1.4 million for services that never occurred. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI; the U.S. Department of Health and Human Services, Office of Inspector General; and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.
Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing tried the case.
Coon Rapids Man Pleads Guilty to Threatening a U.S. SenatorRead the Press Release
ST. PAUL, Minn. – A Coon Rapids man has pleaded guilty to making interstate threats against a U.S. Senator, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 11, 2022, Brendon Michael Daugherty, 35, left two voicemail messages on the field office telephone of a U.S. Senator located outside the state of Minnesota. Both messages contained threats of violence directed at the U.S. Senator. In his first message, Daugherty stated, “You and the Republican Party should be proud that you’re pushing me to become a domestic terrorist. Have a nice [expletive] day; can’t wait to kill ya.” In his second message, Daugherty stated, “I also just wanted to note, thank God the Republican Party is against gun control laws because it would keep guns out of the hands of a person that was disabled and volatile like I am, but you guys are totally against that. So, I may actually get to carry out my nefarious goals.” Field office staff retrieved and recorded the messages and reported them to U.S. Capitol Police.
Daugherty pleaded guilty today in U.S. District Court before Senior Judge Eric C. Tostrud to one count of interstate transmission of a threat to injure the person of another. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
White Bear Lake Registered Sex Offender Sentenced to 10 Years in Prison for Child PornographyRead the Press Release
MINNEAPOLIS – A White Bear Lake man was sentenced to 120 months in prison, followed by 15 years of supervised release, ordered to pay $8,000 in restitution, and $3,000 to a victim assistance fund for possession of images and videos depicting child sexual abuse, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, Justin John Mitchell, 28, a registered sex offender, was found in possession of thousands of images and videos of child sexual abuse on two different occasions in or around August 2019 and January 2022. Among these were depictions of the sexual abuse of prepubescent minors. Mitchell was on supervision for child pornography possession in Ramsey County at the time of the offenses.
On June 3, 2022, Mitchell pleaded guilty to two counts of possession of child pornography. He was sentenced yesterday in U.S. District Court by Judge Katherine M. Menendez.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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 by the FBI and the Ramsey County Sheriff’s Office.
This case was prosecuted by Special Assistant U.S. Attorney Hillary A. Taylor.
Minneapolis Man Sentenced to Six Years in Prison for Possessing Fentanyl with Intent to Sell and Possessing a Machine GunRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 72 months in prison, followed by three years of supervised release, for possession with intent to distribute fentanyl and possession of a machine gun, announced United States Attorney Andrew M. Luger.
According to court documents, on June 23, 2021, law enforcement was looking for Brian Silva, 21, who had multiple active state warrants for his arrest. Police officers were able to track Silva to a hotel in Bloomington, Minnesota. Officers conducted surveillance of Silva’s vehicle in the parking lot and placed spokes behind Silva’s car in case he tried to flee. Silva eventually got into his car, backed up, punctured his tires, and then fled on foot through the parking lot. During the foot chase, Silva discarded a satchel before surrendering to police. Inside of the satchel, officers found 331 counterfeit prescription pills that contained fentanyl, an unloaded 9mm Glock handgun with an auto sear attached (commonly referred to as a "switch,” enabling the firearm to fire as an automatic machinegun), a 30-round magazine loaded with 9mm ammunition, and approximately $4,800 cash. In July 2021, federal agents arrested Silva in Arizona following a drug transaction and found Silva in possession of over 327 grams of fentanyl pills, and over $1,550 in cash.
Silva was sentenced today by U.S. District Senior Judge Susan Richard Nelson. On June 15, 2022, Silva pleaded guilty to one count of possessing a machinegun and one count of intent to distribute fentanyl.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, the Minneapolis Police Department, and the Bloomington Police Department.
Assistant U.S. Attorneys Justin Wesley and Benjamin Bejar prosecuted the case.
Blaine Man Indicted for His Role in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – Mohamed Muse Noor, aka “Deeq Darajo,” has been indicted for his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.
According to court documents, Noor, 37, was the president and owner of Xogmaal Media Group, a Minneapolis-based non-profit company that ran an online news outlet focused on the Somali community in Minnesota. Xogmaal Media Group was enrolled as a Federal Child Nutrition Program site under the sponsorship of Feeding Our Future. Noor claimed that the site would be located in Minneapolis.
According to court documents, from November 2020 through 2022, Noor claimed that Xogmaal Media Group was serving as many as 1,500 children every day, seven days a week. Noor submitted fake meal counts that he signed as the site supervisor. Noor also submitted fake invoices purporting to document the purchase of food to be served at the Xogmaal Media Group site.
According to court documents, between February and June 2021, Noor claimed to have served approximately 580,000 meals to children at the Xogmaal Media Group site. Based on these fraudulent claims, Noor and his co-conspirators claimed that Xogmaal Media Group was entitled to more than $1.3 million in Federal Child Nutrition Program funds. Ultimately, Xogmaal Media Group received nearly $500,000 in Federal Child Nutrition Program funds between June and August 2021. Noor paid nearly 80 percent of these funds over to entities controlled by Abdikerm Eidleh. The memo lines of the checks written to Eidleh’s companies falsely indicated that the payments were for “supplies” and to repay loans. In reality, the money was transferred to Eidleh’s companies in order to misappropriate and launder the proceeds of the fraud scheme.
Noor, who was initially arrested and charged by criminal complaint on September 26, 2022, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Noor made his initial appearance today in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, Chelsea A. Walcker, and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Paul Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to his 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, Abdul Abubakar Ali, 40, admitted that from December 2020 through January 2022, he knowingly and willfully conspired with others to participate in a fraudulent scheme to obtain and misappropriate millions of dollars in federal child nutrition program funds that were intended as reimbursements for the cost of serving meals to underprivileged children.
According to his guilty plea, Ali used a non-profit entity called Youth Inventors Lab as a shell company to carry out his scheme. Ali and his co-conspirators enrolled Youth Inventors Lab in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. After enrolling in the program, Ali and his co-conspirators immediately began submitting claims for reimbursement for purportedly serving meals to hundreds or thousands of children a day. In support of these fraudulent claims, Ali and his co-conspirators prepared and submitted fake invoices purporting to document the purchase of food from a vendor, S & S Catering. But S & S Catering did not provide Youth Inventors Lab any meals and Youth Inventors Lab did not serve any meals.
According to his guilty plea, Ali submitted fake invoices from his company, Bilterms Solutions, to Youth Inventors Lab. The invoices were for purportedly providing technology services, which Ali and Bilterms Solutions did not actually perform. The purpose of the invoices was to hide the source of the funds Ali was receiving for participating in the fraud. Ali received approximately $82,000 from Youth Inventors Lab. Ali also received payments through Bilterms Solutions from co-conspirators made through another company, Franklyn Transportation. Those payments were made to Ali for his participation in the fraud scheme. Ali received $47,000 from Franklyn Transportation.
In total, Youth Inventors Lab claimed to have served over 1.3 million meals between December 2020 through June 2021 and fraudulently received $3,029,786 in reimbursements from Feeding Our Future.
Ali pleaded guilty yesterday in U.S. District Court before Judge Nancy E. Brasel to one count of conspiracy to commit wire fraud. Sentencing hearings 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.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.