District of Minnesota
Press releases recorded for this federal judicial district.
Minneapolis Man Pleads Guilty to Violent Carjacking Conspiracy Targeting Uber and Lyft Drivers, Assaulting a Federal OfficerRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has pleaded guilty to pulling a gun on an FBI agent and to his role in a violent carjacking ring that targeted Uber and Lyft drivers, announced U.S. Attorney Andrew M. Luger.
According to court documents, between September and October 2021, William Charles Saffold, 20, and his co-conspirators engaged in a series of violent carjackings and armed robberies, targeting Uber and Lyft drivers. As part of the scheme, members of the conspiracy lured victim-drivers to particular locations under the guise of picking up or dropping off passengers. When the victim-drivers arrived, members of the conspiracy brandished firearms and demanded the cell phones and wallets of the victim-drivers. Members of the conspiracy forced the victim-drivers at gunpoint to unlock their cell phones and provide passcodes. The conspiracy members then transferred money, via Cash App or other applications, from the accounts of the victim-drivers to the accounts of members of the conspiracy. Members of the conspiracy then carjacked the victim-drivers at gunpoint. To intimidate and force compliance, members of the conspiracy struck, pistol whipped, and threatened to kill the victim-drivers.
According to court documents, on May 11, 2022, while attempting to execute an arrest warrant, an FBI agent approached Saffold, who immediately drew a pistol and pointed it at the agent before fleeing on foot.
Saffold pleaded guilty yesterday before U.S. District Judge Katherine M. Menendez to one count of conspiracy to use, carry, and brandish firearms during and in relation to crimes of violence and one count of assault on a federal officer. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
U.S. Attorney Andrew M. Luger and Assistant U.S. Attorney Thomas Calhoun-Lopez are prosecuting the case.
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Blaine Man Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
MINNEAPOLIS– A Blaine man has pleaded guilty to possession with intent to distribute fentanyl, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea, on May 5, 2021, law enforcement executed a search warrant at the Blaine residence of Demarcus Lee Washington, 35. As a result of the search, law enforcement recovered over 1,000 grams of controlled substances, at least 800 grams of which was fentanyl.
Washington pleaded guilty today before Senior Judge Ann D. Montgomery to one count of possession with intent to distribute fentanyl. A sentencing hearing has not yet been scheduled.
This case was investigated by the Department of Homeland Security, the Ramsey County Violent Crime Enforcement Team (VCET) and the Roseville and Mounds View Police Departments.
Assistant U.S. Attorneys Andrew Dunne, Ruth Shnider and Samantha Bates are prosecuting the case.
St. Paul Man Pleads Guilty to Straw Purchasing FirearmsRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to making a false statement during the purchase of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 20, 2021, Clifton Earl Jiles, 31, purchased the firearm, stating on the ATF Form 4473 that he was the actual buyer of the firearm, however he was not. Jiles admitted to making false statements in this way to purchase at least nine firearms. Jiles also admitted he gave one of the firearms to an individual who was legally unable to possess one.
Jiles pleaded guilty yesterday in U.S. District Court before Senior Judge Michael J. Davis to one count of false statement during the purchase of a firearm. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
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Red Lake Man Sentenced to Nine Years in Prison for Sexual Abuse of a MinorRead the Press Release
MINNEAPOLIS – A Red Lake man was sentenced to nine years in prison, followed by 20 years of supervised release for sexually abusing a minor announced United States Attorney Andrew M. Luger.
According to court documents, on October 11, 2020, within the exterior boundaries of the Red Lake Indian Reservation, Keith Allen Ehrich, 40, engaged in sexual acts with a minor.
Ehrich pleaded guilty on July 7, 2022, to one count of sexual abuse of a minor. He was sentenced yesterday in U.S. District court by Senior Judge Michael J. Davis.
This case is the result of an investigation conducted by the FBI, Red Lake Police Department, the Headwaters Safe Trails Task Force, with assistance from the U.S. Customs and Border Protection.
Assistant U.S. Attorneys Alexander D. Chiquoine and Chelsea A. Walcker prosecuted the case.
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Willmar Man Charged with Illegal Possession of Explosive Devices and a FirearmRead the Press Release
ST. PAUL, Minn. – A Willmar man has been indicted for illegally possessing two explosive devices and a short-barreled shotgun, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 20, 2021, Brian Keith Kohls, 39, illegally possessed a short-barreled shotgun and two explosive bombs, none of which were registered to him under the National Firearms Registration and Transfer Record. Kohls is also charged with being an unlawful user of controlled substances and is therefore prohibited from possessing firearms.
Kohls is charged with one count of possession of unregistered destructive devices, one count of possession of an unregistered short-barreled shotgun, and one count of possession of a firearm by an unlawful user of controlled substances. If convicted, he faces a potential maximum penalty of 10 years in prison. Kohls made his initial appearance yesterday in U.S. District Court before Magistrate Judge Becky R. Thorson. Kohls was ordered to remain in custody pending a formal detention hearing on October 20, 2022.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Willmar Police Department, the Minneapolis Police Department, and the St. Cloud Police Department.
Assistant U.S. Attorney Ruth S. Shnider 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.
Shakopee Couple Indicted for Their Roles in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
ST. PAUL, Minn. – Mekfira Hussein and Abduljabar Hussein have been indicted for their roles 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, Mekfira Hussein, 38, was the president and owner of Shamsia Hopes, a nonprofit corporation located in Brooklyn Center that operated Federal Child Nutrition Program sites under the sponsorship of Feeding Our Future. Mekfira’s husband, Abduljabar Hussein, 42, created a company, Oromia Feeds LLC, that purported to provide food to children at Shamsia Hopes’ sites in Brooklyn Park, Brooklyn Center, Minneapolis, and Fridley.
According to court documents, from October 2020 through 2022, Mekfira Hussein claimed that Shamsia Hopes was serving as many as 5,000 children a day, seven days a week. In support of these fraudulent claims, Mekfira Hussein submitted fake meal counts and fake invoices purporting to document the purchase of food. Abduljabar Hussein submitted invoices fraudulently claiming that Oromia Feeds LLC was entitled to hundreds of thousands of dollars in Federal Child Nutrition Program funds for providing meals to be served at the Shamsia Hopes sites. Mekfira Hussein diverted at least $5.4 million in Federal Child Nutrition Program funds to Abduljabar Hussein’s Oromia Feeds LLC, which actually spent only a small fraction of that money on food. Between 2020 and 2021, Shamsia Hopes claimed to have served more than 3.4 million meals to children but, in reality, served only a fraction of the meal amounts claimed. In total, the defendants claimed that Shamsia Hopes was entitled to more than $10.4 million in Federal Child Nutrition Program funds from Feeding Our Future. Ultimately, Shamsia Hopes received approximately $7.8 million in Federal Child Nutrition Program funds and Oromia Feeds LLC received nearly $1 million. Together, Mekfira and Abduljabar Hussein used the funds for their own personal benefit, including purchasing luxury vehicles and paying off the mortgage on their Shakopee residence.
According to court documents, Mekfira Hussein and Abduljabar Hussein also paid thousands of dollars in kickbacks to Abdikerm Eidleh, a Feeding Our Future employee, in exchange for Feeding Our Future’s sponsorship of the Husseins companies’ fraudulent participation in the Federal Child Nutrition Program.
Mekfira Hussein, who was initially arrested and charged by criminal complaint on September 19, 2022, and Abduljabar Hussein are charged in a 20-count indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Abduljabar Hussein made his initial appearance today in U.S. District Court before Magistrate Judge Becky R. Thorson. Mekfira Hussein will make her initial appearance at a later date.
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 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.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Saint Paul Man Sentenced to 14 Years in Prison for KidnappingRead the Press Release
MINNEAPOLIS – A Saint Paul man was sentenced to 14 years in prison followed by five years of supervised release for kidnapping a victim at gunpoint and bringing her across state lines, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 10, 2022, Derrick Johnathan Fasig, 28, kicked in the window of the residence where the victim was living, kidnapped her at gunpoint, and forced her into his vehicle. Fasig drove the victim to Wisconsin, repeatedly threatened her with a rifle and a hammer he kept on his lap, and, to avoid capture, forced the victim to throw her phone out the window. Fasig drove the victim to his father’s house and barricaded his bedroom door with the bed so she could not leave. The next day, after realizing law enforcement was surveilling his home, Fasig left with the victim in his vehicle. Law enforcement eventually stopped the vehicle after high-speed pursuit, and Fasig fled on foot but was later caught and arrested.
Fasig was sentenced today in U.S. District Court before Senior Judge David S. Doty. On July 5, 2022, Fasig pleaded guilty to one count of kidnapping.
This case is the result of an investigation conducted by the FBI and Minneapolis Police Department, with assistance from the Burnsville Police Department and the Minnesota State Patrol.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
Saint Paul Felon Pleads Guilty to Illegal Possession of a Firearm after Drive-By ShootoutRead the Press Release
MINNEAPOLIS – A Saint Paul man has pleaded guilty to illegally possessing a firearm as a felon in connection to a November 2021 shootout, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 18, 2021, at approx. 1:30 p.m., Laquell Montreal Kilgore-Hodges, 25, was driving a rental vehicle with other passengers in a St. Paul residential neighborhood, when a rolling shootout occurred between the rental vehicle and another vehicle. Kilgore-Hodges sped away from the area, ran a red light, and struck another vehicle. Kilgore-Hodges and the other passengers fled the scene of the crash on foot to a nearby apartment building. A witness reported to law enforcement that they saw an individual with a firearm flee the scene of the crash. State Patrol and St. Paul Police Department Officers responded to the apartment building and detained Kilgore-Hodges and the other passengers. Officers obtained a search warrant and recovered multiple magazines and four firearms, including a Glock, model 19, 9mm pistol. Forensic DNA analysis determined that the defendant’s DNA profile matched the DNA profile on the Glock 19 and excluded others. Additionally, ballistics analysis determined that the discharged cartridge casings recovered from the rental vehicle and from the scene of the shootout were fired from the Glock 19 firearm. Because Kilgore-Hodges has prior felony convictions in Ramsey and Wright Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
Kilgore-Hodges pleaded guilty today in U.S. District Court before Senior Judge Michael J. Davis to one count of possessing a firearm as a felon. A sentencing date will be scheduled at a later time.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Saint Paul Police Department, and the Minnesota State Patrol.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Rochester Man Sentenced to 6.5 Years in Prison for Arson of Multiple Buildings in St. PaulRead the Press Release
MINNEAPOLIS – A Rochester man who fled to Mexico to evade apprehension, and was later located and returned by Mexican authorities, was sentenced to 78 months in prison followed by three years of supervised release and ordered to pay $39,028 in restitution for the arson of two retail stores and a school during the summer of 2020, announced United States Attorney Andrew M. Luger.
According to court documents, on May 28, 2020, Jose Angel Felan, Jr., 36, set fire to the Goodwill retail store, the Gordon Parks High School, and the 7 Mile Sportswear store, all of which were located on University Avenue in St. Paul. Following the arsons, Felan and his wife and co-defendant Mena Dhaya Yousif, 23, fled the state. Felan and Yousif traveled by car from Rochester, Minnesota, to Texas, where Felan had family. Ultimately, Felan and Yousif fled the United States and escaped to Mexico. On February 15, 2021, following an anonymous tip, Felan and Yousif were located and detained by Mexican immigration authorities and returned to the United States.
Felan was sentenced today in U.S. District Court before Senior Judge David S. Doty. On February 24, 2022, he pleaded guilty to one count of arson.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, the Rochester Police Department, the St. Paul Fire Department, and the Minnesota State Fire Marshal Division. The fugitive apprehension efforts were led by the U.S. Marshals Service.
Assistant U.S. Attorneys Melinda A. Williams and Emily A. Polachek prosecuted the case.
U.S. Attorney Luger Announces Justice Department Grant to Support Project Safe NeighborhoodsRead the Press Release
MINNEAPOLIS – U.S. Attorney Andrew M. Luger announced today that the Department of Justice has awarded $236,111 to support the Project Safe Neighborhoods Program in the District of Minnesota. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“My office has taken a strategic approach to address violent crime in our communities, an approach that recognizes the importance of prevention, intervention and enforcement. Leveraging these Project Safe Neighborhood grant funds is another step towards breaking this trend of violent crime,” said U.S. Attorney Andrew M. Luger.
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. In the District of Minnesota, PSN funds are awarded from the Department of Justice to the Minnesota Office of Justice Programs, which serves as the fiscal agent. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Minneapolis Man Sentenced to 35 Years in Prison for Using Snapchat to Produce Child PornographyRead the Press Release
ST. PAUL, Minn. – A Minneapolis man was sentenced to 420 months in prison followed by a lifetime term of supervised release for producing sexually explicit videos of minors, announced United States Attorney Andrew M. Luger.
According to court documents, in March 2020, Jay Tyrell Whiteford, 40, used his cell phone and Snapchat account to communicate with at least two minors. In his communications, Whiteford used an alias and told the minor he was 16 years old. He induced the minors to create and send to him sexually explicit videos and images.
Whiteford was sentenced yesterday in U.S. District Court before Judge Eric C. Tostrud. On June 17, 2022, he pleaded guilty to one count of production of child pornography.
This case was the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Florida Woman Pleads Guilty to $86 Million Magazine Fraud Scheme Targeting EldersRead the Press Release
MINNEAPOLIS – A Florida woman has pleaded guilty to her role in a $300 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger.
According to her guilty plea and documents filed with the court, from 2001 through 2020, Rhonda Jean Moulder, 62, of Cape Coral, Florida, knowingly conspired with others to devise a telemarketing scheme that victimized numerous individuals across the United States, many of whom are elderly and vulnerable. Rhonda Moulder worked as a manager for Florida-based companies involved in fraudulent magazine sales, including Gulf Coast Readers Inc., ARCO Media Inc., KMK Magazines Inc., and Leisure Time Resources Inc., collectively the “companies.” Her role as a manager was to manage telemarketing call centers and oversee the fraud on a day-to-day basis as well as respond to BBB complaints from victims.
According to her guilty plea and documents filed with the court, Rhonda Moulder operated under the direction of her co-defendant and brother, Anthony Eugene Moulder, 61, of Fort Myers, Florida, who had ultimate control over the companies. The companies operated multiple telemarketing call centers in Cape Coral, Florida. At the direction of Anthony Moulder, Rhonda Moulder, and other co-conspirators, call center employees made calls to elderly and vulnerable victim-consumers using deceptive sales scripts designed to induce them—through a series of lies and misrepresentations—into making large or repeat payments to the companies. In total, Rhonda Moulder and the companies she managed defrauded thousands of victims out of more than $86 million.
Moulder pleaded guilty today in U.S. District Court before Judge John R. Tunheim to one count of conspiracy to commit mail fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Matthew S. Ebert are prosecuting the case.
Three Defendants Plead Guilty to Their Roles in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – Three individuals have pleaded guilty to their roles 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, Bekam Addissu Merdassa, 40, of Inver Grove Heights, Hanna Marekegn, 40, of Medina, and Hadith Yusuf Ahmed, 34, of Eden Prairie, admitted that between 2020 and 2022, they 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, Merdassa used a non-profit entity called Youth Inventors Lab as a shell company to carry out his scheme. Merdassa 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, Merdassa 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, Merdassa and his co-conspirators prepared and submitted fake invoices purporting to document the purchase of food from a vendor, S & S Catering. But Youth Inventors Lab never received any meals from S & S Catering to serve at its site. 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.
According to her guilty plea, Marekegn enrolled her company, Brava Cafe, in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. In her application, Marekegn claimed that she would be serving meals to up to 4,000 children per day at her restaurant in Minneapolis. In reality, Marekegn had neither the ability to prepare and serve that many meals each day nor that number of children to feed. Marekegn submitted fraudulently inflated invoices for reimbursement in which she claimed to be serving meals to thousands of children a day. In support of these fraudulent claims, the defendant prepared and submitted fake paperwork, including falsely inflated meal counts. Marekegn also participated in the Federal Child Nutrition Program as a vendor and paid kickbacks to a Feeding Our Future employee in exchange for the nonprofit’s sponsorship of her company. In total, the company claimed to have served over 2 million meals to children between September 2020 and fall 2021 and obtained approximately $7.1 million in Federal Child Nutrition Program funds.
According to his guilty plea, Ahmed was an employee of Feeding Our Future and was responsible for monitoring and supporting sponsor sites. Ahmed solicited and accepted kickback payments from several sites under the sponsorship of Feeding Our Future. Ahmed created and used a shell company, Mizal Consulting LLC, to receive and conceal the kickback payments, which were often disguised as “consulting fees.” In all, Ahmed solicited and received more than $1 million in bribe and kickback payments from individuals and companies involved in the scheme under the sponsorship of Feeding Our Future. Ahmed also created a site under the sponsorship of Feeding Our Future called Southwest Metro Youth. Ahmed and his co-conspirators submitted fraudulent invoices for reimbursement in which they claimed to be serving meals to 2,000 children a day at Southwest Metro Youth. In support of these fraudulent claims, Ahmed and his co-conspirators prepared and submitted fake paperwork, including fake meal counts and fake invoices purporting to document the purchase of food from a vendor. In total, Ahmed’s company Southwest Metro Youth obtained more than $1.1 million in Federal Child Nutrition Program funds
The three defendants pleaded guilty today in U.S. District Court before Judge Nancy E. Brasel to one count each of conspiracy to commit wire fraud. Sentencing hearings will be scheduled at a later time.
These cases are the result of an investigation conducted by the FBI, IRS – Criminal Investigations, the U.S. Department of State’s Diplomatic Security Service, and the U.S. Postal Inspection Service.
These cases are 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.
St. Paul Felon Indicted for Federal Firearm ViolationRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a St. Paul man for possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents on July 23, 2021, Ember Shawndale White, 22, was found in possession of a Beretta APX 9x19mm pistol. Because White has multiple prior felony convictions in Ramsey, Hennepin, and Dakota Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
White is charged with one count of possessing a firearm as a felon. He made his initial appearance in U.S. District Court today, before Magistrate Judge Becky R. Thorson.
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 Matthew S. Ebert 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.
Albert Lea Bookkeeper Pleads Guilty to Embezzling More Than $200,000 in Public Housing Rent PaymentsRead the Press Release
MINNEAPOLIS – An Albert Lea woman has pleaded guilty to stealing more than $200,000 in tenant rent payments, announced U.S. Attorney Andrew M. Luger.
According to court documents, between January 2010 and July 18, 2018, Marcie Marie Thumann, 44, worked as a bookkeeper for the Albert Lea Housing and Redevelopment Authority (HRA), a government program that received both federal and state funding to remedy the shortage of available low-incoming housing units. At the beginning of each month, the HRA’s computer system generated a rent-due balance for each tenant. Thumann, who was responsible for recording and reconciling payments to the HRA, received tenants’ rent payments via cash, check, or money order. During her tenure as the HRA’s bookkeeper, Thumann routinely embezzled HRA rent payments for her own personal use and benefit. She did so by pocketing cash payments and altering the payee information on payments made by check and money order. Thumann also manipulated the HRA’s computer system to conceal the money she stole, avoid detection, and prolong her fraud scheme. In total, Thumann stole at least $213,217 in tenant payments.
Thumann pleaded guilty today in U.S. District Court before Senior Judge David S. Doty to one count of theft from program receiving federal funds. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the U.S. Department of Housing and Urban Development – Office of the Inspector General and the Albert Lea Police Department.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
Final Defendant Pleads Guilty to Role in Murder and Assault on the Red Lake Indian ReservationRead the Press Release
ST. PAUL, Minn. – A Duluth woman has pleaded guilty to her role in a murder that took place in August 2019 on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on August 12, 2019, Mia Faye Sumner, 21, and her co-defendants Alexia Gah Gi Gay Mary Cutbank, 21, and Daniel Charles Barrett, 31, armed with at least one handgun, entered the garage of a residence where Daniel Alan Johnson was known to reside. Once inside, Cutbank fired multiple gunshots, fatally wounding Johnson and seriously injuring a second victim, T.B.S. The three defendants returned to the waiting vehicle and left the scene. To assist the defendants in avoiding arrest, Rose Celeste Siewert, 50, drove Cutbank, Barrett, and Sumner off the Red Lake Indian Reservation.
Sumner pleaded guilty today in U.S. District Court before Senior Judge Susan Richard Nelson to one count of aiding and abetting murder in the second degree. A sentencing hearing has not been scheduled.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI, the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Department of Corrections, in collaboration with the United States Attorney’s Office Missing and Murdered Indigenous Persons Initiative.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
Brooklyn Center Man Pleads Guilty to Insurance Fraud After Staging a Politically Motivated Arson AttackRead the Press Release
MINNEAPOLIS – A Brooklyn Center man has pleaded guilty to wire fraud after filing fraudulent insurance claims for a staged arson, announced U.S. Attorney Andrew M. Luger.
According to court documents, on September 23, 2020, Denis Vladmirovich Molla, 30, falsely reported to law enforcement that someone had lit his camper on fire and that three unknown males were near his home when he heard an explosion. Molla also reported that his garage door was vandalized with spray painted graffiti stating, “Biden 2020,” “BLM,” and an Antifa symbol, and that his camper was targeted because it had a Trump 2020 flag displayed on it. In reality, Molla started his own property on fire and spray painted the graffiti on his own garage.
According to court documents, Molla submitted multiple insurance claims seeking coverage for the damage to his garage, camper, vehicles, and residence caused by the fire. When Molla’s insurance company denied some of those claims, Molla submitted a written complaint to the insurance company claiming that it was defrauding him and threatened to report the company to the Department of Commerce and to the Attorney General. Molla also created and allowed others to create two GoFundMe accounts to benefit Molla and his family. In total, Molla submitted more than $300,000 in fraudulent insurance claims, and he received approximately $61,000 from his insurance company. Molla also received more than $17,000 from individual donors via GoFundMe.
Molla pleaded guilty today in U.S. District Court before Senior Judge David S. Doty to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the Brooklyn Center Police Department.
Assistant U.S. Attorneys Angela M. Munoz and Kimberly A. Svendsen are prosecuting the case.
Minneapolis Man Arrested, Charged with Carjacking a Woman at GunpointRead the Press Release
MINNEAPOLIS – A Minneapolis man has been arrested and charged with carjacking a woman at gunpoint in Arden Hills, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on September 13, 2022, at approximately 7:25 a.m., Raphael Raymond Nunn, 50, approached a woman who had just parked her vehicle in an underground parking garage in Arden Hills. Nunn, who was wearing a dark baseball cap, dark jacket, surgical mask, and cloth gloves, and carrying a handgun, pushed the victim to the ground and then forced her at gunpoint to get back into her vehicle. Nunn ordered the victim to drive to an ATM machine and forced her to withdraw cash. Nunn then ordered the victim to drive to Matthews Park in south Minneapolis. Upon arrival, at Nunn’s direction, the victim gave her keys to Nunn and exited the vehicle.
According to the affidavit, Nunn was captured on surveillance videos from cameras around the scene of the crime. Nunn can be seen exiting the victim’s vehicle, removing his hood and mask, and entering a nearby deli and grocery store. Four days later, Nunn returned to the same store driving a vehicle registered in his name and wearing the same shirt he wore during the carjacking incident. Nunn was arrested on September 17, 2022, at his Minneapolis residence.
Nunn is charged with one count of carjacking. He made his initial appearance 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 Ramsey County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Sarah Hudleston 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.
White Earth Man Sentenced to 10 Years in Prison for Assaulting a ChildRead the Press Release
MINNEAPOLIS – A White Earth man was sentenced to 120 months in prison followed by three years of supervised release for assaulting a minor child on the White Earth reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on June 8, 2020, Edward Duane Fairbanks, 30, was caring for a minor child. During the early afternoon hours, Fairbanks intentionally shoved the child into a table, causing a serious head injury. The child was taken to the hospital where doctors diagnosed a large skull fracture and a subdural hematoma. The child had to undergo a craniectomy to relieve pressure on the brain.
Fairbanks was sentenced yesterday in U.S. District Court before Judge John R. Tunheim. On June 2, 2022, he pleaded guilty to one count of assault resulting in serious bodily injury.
This case was the result of an investigation conducted by the White Earth Police Department, the Minnesota Bureau of Criminal Apprehension, the Mahnomen County Sheriff’s Office, and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Deidre Y. Aanstad prosecuted the case.
St. Paul Man Sentenced to 40 Months in Prison for his Role in Illegal Gun Buying ConspiracyRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 40 months in prison followed by three years of supervised release for his role in a firearms straw purchasing conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, between May 11, 2021, and October 17, 2021, Gabriel Lee Young-Duncan, 28, participated in a conspiracy to illegally purchase multiple firearms, including one that was used in the Seventh Street Truck Park Bar shooting on October 10, 2021. Young-Duncan and a co-conspirator agreed to work together to illegally acquire firearms by making false statements to Federal Firearms Licensees (FFLs) throughout the Twin Cities. Specifically, the co-conspirator would purchase the firearms, stating on the ATF Form 4473 that the co-conspirator was the actual buyer, and then transfer the firearms to Young-Duncan, who would keep the firearms, or further transfer them to third parties.
According to court documents, Young-Duncan and his co-conspirator worked together to illegally obtain dozens of firearms, including four Glock 9mm semiautomatic pistols and two Mossberg 9mm semiautomatic pistols.
Young-Duncan was sentenced earlier today in U.S. District Court before Senior Judge Donovan W. Frank. On May 25, 2022, Young-Duncan pleaded guilty to one count of conspiracy to make false statements in the purchase of firearms.
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 Thomas Calhoun-Lopez prosecuted the case.
Anoka Man Arrested, Charged with Possession of a Machine Gun and MethamphetamineRead the Press Release
MINNEAPOLIS – An Anoka man has been arrested and charged in a federal criminal complaint for illegally possessing a machine gun and possession with intent to distribute methamphetamine, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, in April 2022, the FBI began investigating Darrian Mitchell Nguyen, 50, based on a tip from a Confidential Human Source (CHS) that Nguyen was in possession of explosive devices, firearms, and methamphetamine, and had expressed a desire to join the Three Percenter militia group, a loosely organized anti-government extremist movement. As alleged in the affidavit, according to the CHS, Nguyen kept weapons, including rifles, shotguns, handguns, a grenade launcher, and pipe bombs in “secret” rooms built within the walls of his residence. The affidavit further alleges that Nguyen was manufacturing and trafficking methamphetamine from his residence. On August 23, 2022, during a meeting at the defendant’s residence, Nguyen sold to the CHS 7.1 grams of methamphetamine for $300.
According to the affidavit, to correct a debt owed to the defendant, Nguyen asked the CHS to provide him with firearms, specifically a short-barreled rifle equipped with an auto sear. Through text messages, Nguyen arranged to meet with the CHS to receive four auto sears and a short-barreled rifle equipped with an auto sear. At the arranged meeting on October 4, 2022, after Nguyen took possession of the machine gun and the auto sears, law enforcement arrested Nguyen and executed a search warrant at his residence. Law enforcement recovered several firearms from a hidden room inside the residence, including an AR style firearm equipped with a grenade launcher and a short-barreled shotgun.
Nguyen is charged with one count of possession of a machine gun, one count of possession with intent to distribute methamphetamine, and one count of possession of a firearm not registered in the National Firearms Registration and Transfer Record. He made his initial appearance today 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.
Assistant U.S. Attorney Manda M. Sertich and Department of Justice Trial Attorney Justin Sher 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.
St. Paul Man Sentenced to 17 Years for Violent Armed Robberies of Twin Cities BusinessesRead the Press Release
MINNEAPOLIS – A St. Paul man was sentenced to 204 months in prison followed by four years of supervised release for his role in two armed robberies of Twin Cities businesses, announced United States Attorney Andrew M. Luger.
According to court documents, on June 16, 2020, Devon Dwayne Reginald Glover, 23, and his co-defendant Marshawn Michael Davison, 21, committed an armed robbery at a restaurant in Bloomington. During the course of the robbery, Glover shot and nearly killed the restaurant owner. Glover then took cash from the register.
One week later, on June 23, 2020, Glover committed a second armed robbery at a liquor store in St. Paul. During the course of the robbery, Glover brandished a gun, physically assaulted an employee, and stole cash from the register.
Glover was sentenced today in U.S. District Court before Judge John R. Tunheim. On May 25, 2022, he pleaded guilty to one count of discharging a firearm during and in relation to a crime of violence, and one crime of brandishing a firearm during and in relation to a crime of violence. Davison pleaded guilty to one count of Hobbs Act robbery and was sentenced on May 24, 2022, to 72 months in prison followed by three years of supervised release.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, the Bloomington Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez prosecuted the case.
Owner of St. Cloud Press Bar Sentenced to 71 Months in Prison for ArsonRead the Press Release
ST. PAUL, Minn. – Andrew Charles Welsh has been sentenced to prison for intentionally setting fire to the Press Bar and Parlor as part of a scheme to obtain insurance money, announced U.S. Attorney Andrew M. Luger.
U.S. District Judge Eric C. Tostrud sentenced Welsh, 43, of Saint Joseph, to 71 months in prison followed by three years of supervised release and ordered him to pay $3,093,373.52 in restitution.
According to court documents, Welsh, the owner and operator of the Press Bar and Parlor located in St. Cloud, maintained a business owner’s insurance policy on the business. On February 17, 2020, as part of a scheme to fraudulently obtain insurance money, Welsh used gasoline to set a fire in his office located in the basement of the Press Bar. The fire eventually spread and resulted in the total destruction of the building as well as other losses.
On February 24, 2020, Welsh retained a Public Insurance Adjuster to assist in the preparation, presentation, and adjustment of insurance claims related to the fire at Press Bar. On February 26, 2020, Welsh, through the Public Insurance Adjuster, claimed that he was entitled to payment from the insurance company in the amount $1,430,123.28 for property damage and other losses related to the February 17, 2020, fire. Welsh admitted that in submitting the insurance claim, he falsely stated that “said loss did not originate by any act, design, or procurement on the part of your insured,” when, as Welsh knew, his arson of the Press Bar caused the loss for which he sought compensation.
On May 5, 2022, Welsh pleaded guilty to one count of arson.
U.S. Attorney Luger thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives and their Forensic Auditors for their skilled investigative work on this case, as well as the St. Cloud Police Department, the St. Cloud Fire Department, and the Minnesota State Fire Marshals, Stearns County Sheriff’s Office, and the Stearns County Attorney’s Office for their collaboration and assistance.
Assistant U.S. Attorneys Nathan H. Nelson and Evan B. Gilead prosecuted the case.
CPAP Clinic Employees Found Guilty of Embezzling from EmployerRead the Press Release
MINNEAPOLIS – A federal jury convicted two men of mail fraud and conspiracy for embezzling several hundred thousand dollars from Park Nicollet Health Services, announced U.S. Attorney Andrew M. Luger.
Following a seven-day trial before Senior U.S. District Judge David S. Doty, Gregory Carl Koch, 59, of Minneapolis, and Jerome David Kangas, 58, of Blaine, were convicted September 28, 2022, of mail fraud and conspiracy to commit mail fraud. Kangas was also convicted of currency transaction structuring.
According to the evidence presented at trial, in June 2013 Kangas was hired as a clinician in the Park Nicollet CPAP clinic, where Koch was the supervisor and later manager. CPAP machines are devices commonly used to treat sleep apnea. Between June 2013 and June 2018, Koch and Kangas defrauded Park Nicollet out of hundreds of thousands of dollars in compensation. Although Kangas worked only afterhours and weekends responding to CPAP patient calls, Koch entered more than 8,500 weekday hours in the Park Nicollet records to cause Kangas to be paid for work he did not perform. On most of the days for which Kangas was paid, the evidence showed that he was either working for another employer or out of town. The evidence at trial also showed that Koch logged into the company network for Kangas and helped Kangas reset his computer password to conceal that Kangas was not working as his job description required. The scheme was discovered when Koch was laid off in 2018 as a result of the acquisition of Park Nicollet by HealthPartners.
The currency transaction structuring related to a 12-day period in July and August 2017 when Kangas made six withdrawals between $5,000 and $5,500 from four different Wells Fargo Bank branches, for a total of $30,500. Federal law requires banks to report currency transactions over $10,000, as a means of detecting financial crimes. Four days after the last $5,500 withdrawal by Kangas, Koch made a $29,300 cash deposit into his own US Bank account.
Koch and Kangas face potential five-year sentences for each count. A sentencing date is not yet scheduled.
This case was the result of an investigation conducted by the FBI.
This case was tried by Assistant U.S. Attorneys Michelle E. Jones and Robert M. Lewis.
Sauk Rapids Man Pleads Guilty to Manufacturing, Selling Ghost GunsRead the Press Release
ST. PAUL, Minn. – A Sauk Rapids man has pleaded guilty to willfully manufacturing firearms without a license, announced U.S. Attorney Andrew M. Luger.
According to court documents, between the fall of 2021 through April 2022, Jay James Olson, 21, willfully engaged in the business of manufacturing firearms for profit, despite the fact that he is not and has never been a federally licensed manufacturer of firearms. In the spring of 2022, Olson offered to sell unserialized firearms, commonly referred to as “ghost guns,” and various firearms-related accessories, including a silencer, an auto sear, and high-capacity magazines, to an individual for $20,000. Unbeknownst to Olson, the individual was working with law enforcement as a confidential source. During their conversations, Olson told the confidential source that the price for each firearm would be going up because of the federal government’s recent initiative targeting ghost guns.
On April 26, 2022, at a residence in Waite Park, Olson sold the confidential source 16 ghost guns, nine high-capacity magazines, one firearms silencer, an auto-sear, and other firearms accessories. Immediately after the transaction, law enforcement arrested Olson and executed a search warrant at the residence. During the search, investigators recovered firearm assembly kits, unserialized lower receivers, and multiple miscellaneous firearms parts and accessories. On May 4, 2022, investigators executed a search warrant at Olson’s Sauk Rapids residence, and recovered from the basement manufacturing tools, various firearm assembly kits, and a Glock firearm assembly diagram.
Olson pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of willfully engaging in the business of manufacturing firearms without a license. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hennepin County Sheriff’s Office, the Hennepin County Violent Offender Task Force, and the Stearns County Sheriff’s Office.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Moorhead Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS– A Moorhead man has pleaded guilty to illegally possessing a firearm, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on March 13, 2022, Martin Torres, Jr., 37, was arrested by the Clay County Sheriff’s Office after attempting to flee a traffic stop and resisting arrest. Following his arrest, officers conducted a search and found a loaded Hi-Point Model C-9, 9mm caliber pistol in Torres’s jacket. Because Torres has prior felony convictions in Clay County, Minnesota, Cass County, North Dakota, and U.S. District Court, he is prohibited under federal law from possessing firearms or ammunition at any time.
Torres pleaded guilty yesterday before Senior Judge Michael J. Davis to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clay County Sheriff’s Office.
Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Federal Prison Inmate Pleads Guilty to Attempting to Obtain ContrabandRead the Press Release
MINNEAPOLIS – An inmate at the Federal Correctional Institution (“FCI”) in Sandstone has pleaded guilty to attempting to obtain contraband in prison, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on two separate dates in February and March 2022, Nickolas William Mihelic, 39, an inmate at FCI Sandstone, attempted to obtain methamphetamine, a Schedule II controlled substance. In order to bypass security protocols, Mihelic conspired with an unindicted co-conspirator to mail pieces of paper to him at FCI Sandstone that were saturated with liquid methamphetamine. When the methamphetamine-saturated papers arrived at FCI Sandstone, Bureau of Prisons officials seized the contraband.
Mihelic pleaded guilty on September 26, 2022, before U.S. District Judge Nancy E. Brasel to two counts of attempting to obtain contraband in prison. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by Federal Bureau of Prisons and the FBI.
Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Brooklyn Center Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn.– A Brooklyn Center man has pleaded guilty to illegally possessing a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, on January 17, 2021, Ezell Michael Tribett, 29, was riding in a vehicle that struck a parked car. Tribett admitted that, prior to the crash, he was in possession of a Glock, Model 23, GEN4, .40 caliber semi-automatic pistol that he gave to the driver of the car. After the crash, the driver exited his vehicle, walked behind a nearby parked car, and dropped the firearm in the snow. Officers with the Minneapolis Police Department stopped to investigate the crash and recovered the firearm from the snow. Because Tribett has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Tribett pleaded guilty on September 21, 2022, before Judge Eric C. Tostrud to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
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California Woman Indicted for Embezzling More Than $1 Million from EmployerRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a California woman for wire fraud, identity theft, and filing false tax returns after embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that provided financial services to homeowners’ associations throughout the Twin Cities metro area. Xiong’s duties included bookkeeping, and as manager she had nearly unfettered access to the victim homeowner’s associations’ financials, bank accounts, vendor and contractor payments, and bookkeeping systems. Between February 2015 and February 2022, Xiong devised and executed a fraud scheme to embezzle funds directly from the accounts to which she had access. These funds were HOA fees collected from residents, intended to pay for maintenance, construction, and other costs incurred by the victim associations.
As part of the scheme, Xiong repeatedly accessed the HOAs’ bank accounts and conducted electronic transfers of funds directly into her personal bank accounts. Xiong disguised these transfers by mis-labeling them to make it appear as if they were legitimate HOA expenses. Xiong also used her authority as a signatory to make cash withdrawals directly from the HOAs’ accounts, including making withdrawals after she was fired from her position in July 2021. After her termination, Xiong began collecting Unemployment Insurance (UI) funds. However, even after Xiong found new employment, she continued to wrongfully obtain public UI benefits.
Xiong is charged with five counts of wire fraud, one count of aggravated identity theft, four counts of making and subscribing a false return, and one count of failure to file an individual return. She was arrested on September 22, 2022, and made her initial appearance before Magistrate Judge Barbara A. McAuliffe in U.S. District Court in the Eastern District of California.
This case is the result of an investigation conducted by the IRS – Criminal Investigations, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen 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.
Minneapolis Man Pleads Guilty to Violent Carjacking Outside Northeast Minneapolis Restaurant, Admits to Two Additional Armed Carjackings in Golden ValleyRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has pleaded guilty to a violent carjacking of a woman outside her place of work in northeast Minneapolis and admitted his involvement in two additional armed carjackings, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 9, 2022, Shamir Nathann Black, 18, and an unidentified accomplice approached a woman outside of her place of work and demanded her car keys. Black proceeded to push the victim to the ground and hit her on the head with a firearm. A bystander attempted to assist the victim but was also assaulted by Black. During the struggle, Black discharged the firearm in the bystander’s direction. Black and an accomplice then got into the victim’s vehicle, but surrounding witnesses pulled Black from the driver’s seat and put him on the ground. Black and his accomplice fled the scene on foot.
After arriving at the scene, officers with the Minneapolis Police Department located a Shadow Systems 9mm semiautomatic pistol wrapped in a gray sweatshirt. The firearm had been reported stolen in Prior Lake in April 2022. Investigators reviewed a social media video that showed Black waving around a handgun that matched the firearm recovered at the crime scene. Further investigation revealed that a Volkswagen Jetta had been taken in a Prior Lake home burglary on the same night the firearm was stolen. Law enforcement later recovered the stolen Jetta from Black’s Minneapolis residence. On June 24, 2022, Black was taken into custody.
Black pleaded guilty on September 20, 2022, before U.S. District Judge Wilhelmina Wright to one count of carjacking. As part of the plea, Black also admitted to being involved in two additional armed carjackings in Golden Valley this past spring. Black faces up to 15 years’ imprisonment for the carjacking and will be sentenced at a later date.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Golden Valley Police Department, and the Hennepin County Sheriff’s Office.
Assistant U.S. Attorney Lauren Roso is prosecuting the case.
Three Defendants Plead Guilty to Murder and Assault on the Red Lake Indian ReservationRead the Press Release
ST. PAUL, Minn. – Three individuals have pleaded guilty for their roles in a murder that took place in August 2019 on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on August 12, 2019, Alexia Gah Gi Gay Mary Cutbank, 21, of Bemidji, Mia Faye Sumner, 21, of Duluth, and Daniel Charles Barrett, 31, of Redby, armed with at least one handgun, entered the garage of a residence where Daniel Alan Johnson was known to reside. Once inside, Cutbank fired multiple gunshots, fatally wounding Johnson and seriously injuring a second victim, T.B.S. The three defendants returned to the waiting vehicle and left the scene. To assist the defendants in avoiding arrest, Rose Celeste Siewert, 50, of Cass Lake, drove Cutbank, Barrett, and Sumner off the Red Lake Indian Reservation.
Cutbank pleaded guilty yesterday before Senior U.S. District Judge Susan Richard Nelson to one count of aiding and abetting murder in the second degree and one count of aiding and abetting assault resulting in serious bodily injury. Barrett pleaded guilty on August 16, 2022, to one count of aiding and abetting murder in the second degree. Siewert pleaded guilty on September 14, 2022, to one count of accessory after the fact. Sentencing hearings for Cutbank, Barrett, and Siewert have not yet been scheduled. Sumner is currently scheduled to go to trial on October 31, 2022.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI, the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Department of Corrections, in collaboration with the United States Attorney’s Office Missing and Murdered Indigenous Persons Initiative.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – The U.S. Attorney’s Office for the District of Minnesota today announced federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”
“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”
The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.
As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.
To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between 7 and 17 into the age column of the rosters.
Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.
In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.
When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.
In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.
“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said IRS - Criminal Investigation Special Agent in Charge Justin Campbell, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”
United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.
United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.
United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.
United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.
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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:
- Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.
- Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.
- Salim Ahmed Said, 33, of Plymouth, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.
- Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:
- Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
- Said Shafii Farah, 40, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
- Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.
The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:
- Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.
- Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.
- Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
- Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:
- Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.
- Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.
- Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.
- Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.
- Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:
- Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services, Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.
- Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.
The following defendants are named in the United States v. Sharmake Jama, et al. indictment:
- Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.
- Ayan Jama, 43, of Rochester, Minnesota is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.
- Asha Jama, 39, of Lakeville, Minnesota is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Fartun Jama, 35, of Rosemount, Minnesota is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
Criminal informations:
- Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.
United States Attorney Andrew Luger thanks the FBI, IRS – Criminal Investigations, the U.S. Department of State’s Diplomatic Security Service, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Announces Federal Charges Against 47 Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
The Department of Justice announced today federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”
“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”
The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.
As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.
To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between seven and 17 into the age column of the rosters.
Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.
In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.
When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.
In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.
“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said Special Agent in Charge Justin Campbell of the IRS Criminal Investigation, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”
United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.
United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.
United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.
United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.
United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.
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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:
- Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.
- Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.
- Salim Ahmed Said, 33, of Plymouth, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
- Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.
- Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
- Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:
- Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
- Said Shafii Farah, 40, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
- Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
- Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.
The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:
- Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.
- Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.
- Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.
- Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
- Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
- Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:
- Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.
- Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.
- Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.
- Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.
- Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.
The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:
- Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.
- Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.
- Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.
The following defendants are named in the United States v. Sharmake Jama, et al. indictment:
- Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.
- Ayan Jama, 43, of Rochester, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.
- Asha Jama, 39, of Lakeville, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Fartun Jama, 35, of Rosemount, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
- Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
Criminal informations:
- Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.
- Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.
United States Attorney Andrew Luger thanked the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab for the District of Minnesota are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Coon Rapids Man Indicted for Threatening a U.S. SenatorRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Coon Rapids man for 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. On September 2, 2022, special agents with the FBI spoke to Daugherty at his Coon Rapids residence. Daugherty told the agents he made the calls to the U.S. Senator because the U.S. Senator was “doing a bunch of stupid [expletive] with gun control,” and that he wants politicians to “feel a little bit pressured.”
Daugherty is charged with one count of threatening to murder a United States official and one count of interstate transmission of a threat. He 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 and the U.S. Capitol Police.
Assistant U.S. Attorney Kimberly A. Svendsen 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 Man Sentenced to 43 Years in Prison for Targeting More Than 1,100 Minor Victims in Sextortion SchemeRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 516 months in prison followed by a lifetime term of supervised release for victimizing more than 1,100 minor girls across the country and abroad in an extensive online sextortion scheme, announced United States Attorney Andrew M. Luger.
“For several years, Yue Vang victimized more than 1,000 young girls – in Minnesota and beyond – through a vicious sextortion scheme. Using popular social media apps to prey on his victims, Vang’s manipulation began with compliments and expressions of flattery, which quickly turned into threats and extortion,” said U.S. Attorney Andrew Luger. “Today’s 40-year prison sentence shows that the reprehensible crime of child sexual exploitation will not be tolerated.”
“There are few crimes as damaging and traumatic to a young person as sextortion. Vang is a predator who targeted innocent and impressionable young girls, exploiting their innocence for pictures and videos. He robbed them of their childhood and forever altered their lives and the lives of their families,” said Michael Paul, FBI Special Agent in Charge, Minneapolis Division. “This case demonstrates the extensive reach of social media and the irreparable trauma one predatory individual inflicted on over a thousand young girls. However, the ensuing investigation highlights the immense collaboration and dedication of law enforcement partners throughout the country who worked tirelessly to identify the victims and hold Vang accountable for his atrocious crimes.”
According to court documents, for at least five years, Yue Vang, 31, created and used multiple Internet applications and social media services, including Kik, Snapchat, and Skype, to communicate with hundreds of minor girls throughout the United States and elsewhere. Vang created fake female personae to prey on vulnerable minor girls he met online in order to entice and coerce them to create sexually explicit images and videos to send to him. Vang also threatened to disseminate sexually explicit images of the minor victims to their family members, friends, and classmates, unless they created and sent him additional images and videos of themselves nude or engaging in sexually explicit conduct. For example, in June 2016, Vang contacted a 15-year-old girl and threatened to distribute sexually explicit pictures of her to her classmates and parents to “ruin her life” unless she complied with Vang’s demands to send additional sexually explicit images and videos.
On June 2, 2022, Vang pleaded guilty to two counts of production of child pornography, one count of possession of child pornography, and one count of interstate communications with intent to extort. Vang was sentenced today in U.S. District Court before Judge Eric C. Tostrud.
To date, at least 750 minor females have been identified, although law enforcement is attempting to confirm the identity of many other victims. Anyone who believes they may have been a victim of Vang’s offenses or who has information about this matter is encouraged to visit www.fbi.gov/resources/victim-services/seeking-victim-information/seeking-victims-in-yue-vang-investigation or www.Justice.gov/usao-mn/child-sextortion-victim-information.
This case is 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. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.projectsafechildhood.gov. Click on the “resources” tab for information about Internet safety education.
This case was the result of an investigation conducted by the FBI Minneapolis Field Office and multiple FBI Field Offices, the St. Paul Police Department, the Minnesota ICAC Task Force, the Chandler (Arizona) Police Department, the Delhi Township (Ohio) Police Department, and the Iowa Department of Criminal Investigation.
Assistant U.S. Attorney Chelsea A. Walcker and former Assistant U.S. Attorney Miranda E. Dugi prosecuted the case.
California Man Pleads Guilty to $400,000 Fraud Scheme Involving Minnesota-Based RetailerRead the Press Release
ST. PAUL, Minn. – A California man has pleaded guilty to wire fraud after defrauding his former employer, a Minnesota-based retailer, of more than $400,000, announced U.S. Attorney Andrew M. Luger.
According to court documents, Michael John Gennarelli, 32, of Huntington Beach, California, was employed as a sales consultant and mobile supervisor for Company A, a retail store based in Minnesota. Gennarelli unlawfully accessed Company A’s computer network and obtained sales receipt information for high-dollar-value purchases that were not associated with a “My Rewards” account, Company A’s customer loyalty program. Gennarelli then created numerous fraudulent “My Rewards” accounts, applied the stolen sales receipts information, and claimed the associated “My Rewards” points for the value of such purchases. In total, Gennarelli issued himself approximately $467,307 in “My Rewards” certificates, $393,200 of which he redeemed for merchandise and gift cards in Company A stores and on Company A’s website.
Gennarelli pleaded guilty today before U.S. District Judge Katherine M. Menendez to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the U.S. Secret Service and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.
Two Nigerian Nationals Sentenced to Prison for $2 Million Internet Fraud ScamRead the Press Release
MINNEAPOLIS – Two men have been sentenced to prison for stealing more than $2 million from victims of business email compromise and romance fraud schemes, announced United States Attorney Andrew M. Luger.
According to court documents, beginning in 2016 through May 2021, Olumide Obidare, 29, and Stephen Oseghale, 29, conspired with each other to use fictitious and stolen identities to engage in business email compromise (BEC) fraud schemes and pursue fraudulent romantic relationships online. As part of the scheme, the defendants obtained false identification documents, including passports and driver’s licenses, and used them to open bank accounts at various banks throughout the United States. The defendants transferred the proceeds of their online romance fraud scams and BEC schemes to bank accounts under their control. In total, the defendants defrauded victims of approximately $2,114,893.91.
On March 14, 2022, Obidare pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Earlier today, U.S. District Court by Judge Nancy E. Brasel sentenced Obidare to 132 months in prison followed by three years of supervised release and ordered him to pay $1,955,507.53 in restitution. Oseghale, who pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft, was sentenced on August 16, 2022, to 80 months in prison followed by three years on supervised release and ordered to pay $453,889.27 in restitution.
This case is the result of an investigation conducted by the FBI.
This case was prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen and former Assistant U.S. Attorney Miranda E. Dugi.
Hopkins Man Sentenced to Life in Prison for Distributing Fentanyl that Caused Eleven Overdose DeathsRead the Press Release
ST. PAUL, Minn. – A Hopkins man has been sentenced to life in prison for distributing controlled substances, including fentanyl, which resulted in the deaths of eleven people and caused serious bodily injury to four people, announced U.S. Attorney Andrew M. Luger.
“Eleven lives lost. Families, friends, and communities forever changed by the devastation brought on by Aaron Broussard’s deadly fentanyl. Although the trauma felt by the victims can never be undone and the true cost can never be calculated, Mr. Broussard will now spend the remainder of his life behind bars,” said U.S. Attorney Andrew M. Luger.
“Let today’s sentencing serve as a wakeup call to the drug traffickers pushing fentanyl in and around our communities,” Drug Enforcement Administration (DEA) Omaha Division Special Agent in Charge Justin C. King said. “A mere two milligrams of fentanyl, equivalent in size to a few grains of salt, is enough to potentially kill a person. The threat of fentanyl is real, and the traffickers pushing this deadly substance will be held accountable for the lives they’ve taken, the families they’ve hurt and the communities they’ve devastated.”
“Today’s sentencing of Aaron Broussard sends a clear message in how critical a role the U.S. Postal Inspection Service and its law enforcement partners play in protecting American consumers from illegal narcotics being shipped via the U.S. Mail. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives,” stated Inspector in Charge Ruth M. Mendonça of the U.S. Postal Inspection Service, Denver Division.”
According to the evidence presented at trial, from 2014 through December 6, 2016, Aaron Rhy Broussard, 31, obtained controlled substances, including fentanyl, from China-based drug suppliers. Broussard conspired with his China-based suppliers to smuggle what would prove to be deadly drugs into the country. Broussard marketed these drugs for sale on his website, PlantFoodUSA.net, under the guise of selling plant food. He then used the United States mail and a United States Postal Service “Click-N-Ship” account to send out packages of deadly drugs around the country.
On March 12, 2016, Broussard placed a drug order for 100 grams of 4-FA, a controlled substance analogue, which was shipped from China. The package actually contained 100 grams of 99% pure fentanyl. Although Broussard had experienced a similar mix-up in August 2015 and was repeatedly told to test his drugs, he did not do so. Between March 31 and April 27, 2016, Broussard sent his branded packages containing fentanyl to more than a dozen customers throughout the United States. The customers had ordered and were expecting to receive an amphetamine analogue, similar to Adderall. They were not opiate users and had no tolerance for the deadly fentanyl Broussard sent them. After ingesting the fentanyl, believing it was Adderall, eleven of the customers died from a fentanyl overdose, and at least four customers suffered serious bodily injury.
Broussard continued distributing his deadly packages despite hearing about adverse reactions. Even after he learned that several customers had been hospitalized and nearly died, Broussard never warned his customers not to take the deadly drugs. Broussard did reach out to his suppliers in China to request a discount on his next drug delivery.
On March 31, 2022, following a 10-day jury trial before Senior U.S. District Judge Susan Richard Nelson, Broussard was convicted on 17 counts, including conspiracy, importation of fentanyl, possession with intent to distribute fentanyl, distribution of fentanyl resulting in death, distribution of fentanyl resulting in serious bodily injury, and possession with intent to distribute controlled substance analogues.
During the sentencing hearing, Senior U.S. District Judge Susan Richard Nelson lauded the bravery shown by victims and their families in providing their victim impact statements to the Court. In imposing the life sentence, Judge Nelson told Broussard, “Your disregard for human life is terrifying.”
This case is the result of an investigation conducted by the U.S. Drug Enforcement Administration and the U.S. Postal Inspection Service, in partnership with Homeland Security Investigations, Customs and Border Protection, the University of Minnesota Police Department, the Peoria Heights (Illinois) Police Department, the Dallas (Texas) Police Department, the Broome County (New York) Sheriff’s Office, the Volusia County (Florida) Sheriff’s Office, the Orange County (California) Sheriff’s Office, Garrard County (Kentucky) Sheriff’s Office, Hazel Green (Wisconsin) Police Department, and the Atlanta (Georgia) Police Department.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Melinda A. Williams prosecuted the case.
Minneapolis Man Charged with Using 3D Printers to Manufacture MachinegunsRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged in a federal criminal complaint for possessing auto sears and using 3D printers to manufacture auto sears out of his Minneapolis residence, announced U.S. Attorney Andrew M. Luger.
According to court documents, on August 31, 2022, law enforcement conducted a controlled delivery of a package containing 30 firearm parts to Aaron Malik Cato, 25, at his Minneapolis residence. The package, which had been shipped from Taiwan and intercepted by Customs and Border Protection (CBP) agents, contained enough parts to create 10 auto sears, a device that turns a semi-automatic firearm into a fully automatic firearm and is considered a machinegun under federal law. Upon searching Cato’s home, pursuant to a warrant, law enforcement recovered seven firearms, including five handguns and two AR platform firearms. Three of the handguns were equipped with auto sears and appeared to be Privately Made Firearms (PMF’s), or ghost guns. Law enforcement also found inside Cato’s residence four 3D printers and multiple 3D printed auto sears.
Cato is charged in a criminal complaint with possession of machineguns. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Tony N. Leung and was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen 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.
Corrections Officer Pleads Guilty to Methamphetamine Distribution Conspiracy Inside Stillwater PrisonRead the Press Release
ST. PAUL, Minn. – A former corrections officer has pleaded guilty to her role in a methamphetamine distribution organization within the Minnesota Correctional Facility (MCF)-Stillwater, announced U.S. Attorney Andrew M. Luger.
According to court documents, Faith Rose Gratz, 24, a former MCF – Stillwater corrections officer, and co-defendant Axel Rene Kramer, 34, an inmate who is currently serving a 288-month sentence for second degree murder, conspired with each other to distribute methamphetamine within MCF – Stillwater, Minnesota’s largest high security prison facility. As part of the conspiracy, Kramer obtained wholesale quantities of prepackaged methamphetamine from sources of supply outside the prison. After Kramer and another co-conspirator inmate worked with the drug suppliers to arrange meet up times and locations, Gratz would pick up the drug packages. Gratz used her position as a prison guard to smuggle the drugs into the secure facility and then provide the drugs to Kramer while she was on duty guarding him. Gratz did this on approximately six different occasions. Gratz also smuggled into the prison multiple cell phones that she provided to Kramer. Kramer used the cell phones to communicate with people inside and outside the prison and to facilitate his drug distribution network from within the prison.
According to court documents, Gratz and Kramer exchanged hundreds of text messages with each other. The messages included communications about the drug distribution conspiracy as well as discussions about their romantic relationship. Gratz also warned Kramer about upcoming searches of inmates’ cells.
On April 8, 2022, after recovering Kramer’s cell phone, law enforcement officers confronted Gratz about the drug distribution operation. Officers searched Gratz’s car and recovered a half pound of methamphetamine.
Gratz pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of conspiracy to distribute methamphetamine. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, the Bayport Police Department, and the Minnesota Department of Corrections.
Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case.
Minneapolis Man Pleads Guilty to Child Sex TraffickingRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has pleaded guilty to sex trafficking of a minor, announced U.S. Attorney Andrew M. Luger.
According to court documents, in August 2020, Charles William Dexter III, 41, recruited a 14-year-old minor to engage in commercial sex acts for his benefit. Dexter arranged for these commercial sex acts using online advertisements, including ads posted on Megapersonals.com, to take place at hotels.
Dexter pleaded guilty today before Senior U.S. District Judge Susan Richard Nelson to one count of sex trafficking of a minor. He faces a mandatory minimum sentence of 10 years imprisonment. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by Homeland Security Investigations, the Bloomington Police Department, and the FBI.
Assistant U.S. Attorneys Manda M. Sertich and Chelsea A. Walcker are prosecuting the case.
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Lino Lakes Felon Pleads Guilty to Methamphetamine Trafficking, Firearms Violations in Connection to Kidnapping, Torture CaseRead the Press Release
MINNEAPOLIS – A Lino Lakes man has pleaded guilty to 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 and officers located in the spare tire compartment a Gucci handbag containing a loaded 9 mm semi-automatic pistol and more than two pounds of methamphetamine sealed inside four zip-lock bags.
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. During the torture, Chapa-Aguilera demanded money from the victim and told the victim that he would have to distribute drugs to work off a perceived debt. 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 pleaded guilty today before Senior U.S. District Judge Joan N. Ericksen to one count of possession of a firearm in furtherance of a drug trafficking crime on April 11, 2021, and one count of possession with the intent to distribute methamphetamine on December 20, 2021. A sentencing date has not been set.
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 is prosecuting the case.
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Federal Jury Finds Red Lake Man Guilty of RapeRead the Press Release
DULUTH, Minn. - A Red Lake man was found guilty by a federal jury of aggravated sexual abuse and sexual abuse occurring on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
Following a five-day trial before U.S. District Judge Nancy E. Brasel, Descart Austin Begay, Jr., 38, was convicted late Friday on two counts of aggravated sexual abuse and two counts of sexual abuse.
As proven at trial, on July 3, 2020, Begay knowingly raped and sexually assaulted Victim A in her home, until she was finally able to break free and escape. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
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Minneapolis Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to possession of a firearm as a felon, announced United States Attorney Andrew M. Luger.
According to court documents, on June 23, 2021, William Kenneth Saarela Sr., 42, stole a Canik 9mm pistol. On September 2, 2021, during a domestic dispute with two other individuals, Saarela directed his minor son to bring him the pistol. Saarela fired six shots. No one was injured. On September 21, 2021, law enforcement executed a search warrant at Saarela’s Minneapolis residence and recovered the pistol, which was loaded with 18 rounds. Because Saarela has multiple prior felony convictions he is prohibited under federal law from possessing firearms or ammunition at any time.
Saarela pleaded guilty yesterday before U.S. District Judge John R. Tunheim to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorney Melinda A. Williams is prosecuting the case.
Bayer to Pay $40 Million to Resolve the Alleged Use of Kickbacks and False Statements Relating to Three DrugsRead the Press Release
MINNEAPOLIS – Bayer Corporation, an Indiana corporation and manufacturer of pharmaceutical products, and its related entities, Bayer HealthCare Pharmaceuticals Inc., Bayer HealthCare LLC and Bayer AG (collectively “Bayer”), have agreed to pay $40 million to resolve alleged violations of the False Claims Act in connection with the drugs Trasylol, Avelox and Baycol.
The settlement announced today arose from two “whistleblower” lawsuits filed and pursued by Laurie Simpson, a former employee of Bayer who worked in its marketing department.
In a lawsuit filed in the District of New Jersey, Simpson alleged that Bayer paid kickbacks to hospitals and physicians to induce them to utilize the drugs Trasylol and Avelox, and also marketed these drugs for off-label uses that were not reasonable and necessary. Simpson further alleged that Bayer downplayed the safety risks of Trasylol. The lawsuit alleged that as a result of this conduct Bayer caused the submission of false claims to the Medicare and Medicaid Programs and violated the laws of 20 states and the District of Columbia. Trasylol is a drug used to control bleeding in certain heart surgeries Avelox is an antibiotic approved to treat certain strains of bacteria Simpson filed a second lawsuit relating to Bayer’s statin drug, Baycol, which was later transferred to the District of Minnesota. That lawsuit alleged that Bayer knew about, but downplayed, Baycol’s risks of causing rhabdomyolysis. The lawsuit further alleged that Bayer misrepresented the efficacy of Baycol when compared to other statins and fraudulently induced the Defense Logistics Agency to renew certain contracts relating to Baycol. Subsequently, Trasylol and Baycol were withdrawn from the market for safety reasons.
“Simpson diligently pursued this matter for almost two decades,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Today’s recovery highlights the critical role that whistleblowers play in the effective use of the False Claims Act to combat fraud in federal healthcare programs.”
“We recognize Simpson for her perseverance with this matter,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “We are pleased we were able to work with the parties to facilitate this resolution and help bring this longstanding matter to a close.”
“As alleged in the complaints, Bayer – one of the largest pharmaceutical companies in the world – engaged in a series of unlawful acts, including paying kickbacks to doctors and hospitals, marketing them off-label, and downplaying their safety risks,” said U.S. Attorney Philip R. Sellinger, District of New Jersey. “This resolution should send a message to the pharmaceutical industry that such conduct undermines the integrity of federal health care programs and jeopardizes patient safety. This settlement reflects the importance of the whistleblower’s role in litigating False Claims Act actions on behalf of the United States, and we thank Ms. Simpson and her counsel for stepping forward and pursuing this case to conclusion.”
Under the terms of the settlement, Bayer will pay $38,860,555 to the United States and $1,139,445 to the 20 states and the District of Columbia.
The two actions resolved by the settlement were brought under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the government for false claims and share in any recovery. The United States may intervene in the action or, as in this case, the whistleblower may proceed with the matter. Simpson will receive approximately $11 million from the proceeds of the settlement.
The cases are captioned United States ex rel. Simpson v. Bayer Corp. Civ. No. 05-cv-3895 (D.N.J.), and United States ex rel. Simpson v. Bayer Corp., Civ. No. 08-5758 (D.Minn), and were monitored by the Civil Division’s Commercial Litigation Branch, and the U.S. Attorneys’ Offices for the District of New Jersey and the District of Minnesota.
The claims settled by this agreement are allegations only, and there has been no admission of liability.
Rochester Felon Indicted for Federal Firearm ViolationRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Rochester man for possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents on May 25, 2022, Marcus Anthony Jackson, also known as Homicide, 49, was found in possession of a Taurus G2C 9MM pistol. Because Jackson has multiple prior felony convictions in Olmsted, Hennepin, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
Jackson is charged with one count of possessing a firearm as a felon. He made his initial appearance in U.S. District Court today, before Magistrate Judge Tony N. Leung.
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.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Red Lake Man Sentenced to 239 Months in Prison for RapeRead the Press Release
ST. PAUL, Minn. – A Red Lake man was sentenced to 239 months in prison followed by 10 years of supervised release for aggravated sexual assault, announced United States Attorney Andrew M. Luger.
According to court documents, on November 7, 2020, Paul John Sayers, 30, stopped his truck beside Victim A who was walking on the road. Sayers offered Victim A a ride but instead of taking Victim A to her destination, Sayers drove her to a camper located on a property near a Hemp shop where Sayers worked. When Victim A resisted Sayers’s sexual advances, he hit and strangled Victim A until she passed out. Sayers then raped Victim A. Victim A left the camper after the rape and began walking 20 miles back into town. As part of his guilty plea, Sayers also admitted to unlawful sexual contact with another person.
Sayers pleaded guilty on April 20, 2022, to one count of aggravated sexual assault. He was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud.
This case was the result of an investigation conducted by the FBI, the Red Lake Tribal Police Department, and the Bureau of Criminal Apprehension.
Assistant U.S. Attorney Emily Polachek prosecuted the case.
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Vision Quest Industries to Pay $2,250,000 to Resolve False Claims Act AllegationsRead the Press Release
MINNEAPOLIS – Vision Quest Industries, Incorporated (“VQ”) has agreed to pay the United States $2,250,000 to resolve False Claims Act allegations that VQ caused Osteo Relief Institutes (“ORIs”) to bill Medicare for knee braces that were tainted by illegal kickbacks, the Department of Justice announced today. VQ also entered into a five-year Corporate Integrity Agreement.
VQ is a manufacturer of durable medical equipment, including knee braces and other products intended to treat conditions such as osteoarthritis. VQ utilizes independent sales representatives to sell these products, which are routinely billed to Medicare.
The settlement resolves allegations that between 2011 and 2018, VQ paid Mathias Berry, an independent sales representative of VQ, and Berry’s company, Results Laboratories, LLC, kickbacks in the form of commission payments that ranged from 20–35 percent of VQ’s net revenue on each knee brace ordered by the ORI Clinics. Operating under the direction of Berry and his companies, the ORI Clinics submitted claims for millions of dollars in Medicare reimbursements. VQ profited substantially from the arrangement. By paying Berry and his company kickbacks in the form of sales commissions, VQ was able to establish itself as the exclusive brace supplier for 10-12 ORIs annually between 2011 and 2018. VQ understood that Berry was in a position to tell the ORIs which braces to order. This arrangement locked in millions of dollars in annual brace sales for VQ.
“Anyone working with Medicare must understand that the payment of kickbacks is strictly forbidden,” said U.S. Attorney Andrew M. Luger. “We will remain vigilant in addressing payment arrangements that undermine the core principles of Medicare and other government programs.”
“The payment of kickbacks to induce referrals for medical equipment can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure the appropriate use of taxpayer dollars. The OIG’s five-year compliance agreement is designed to ensure the alleged behavior will not be repeated.”
The allegations resolved by today’s settlement stem from a proactive government investigation based on a critical analysis of Medicare claims data. This effort also led to other previously announced settlements with Berry, Results, several former Osteo Relief Institutes and others for their alleged roles in this scheme.
The government’s settlement in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The matter was investigated by the U.S. Attorney’s Office for the District of Minnesota, the Civil Division’s Commercial Litigation Branch, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against defendants are allegations only, and there has been no determination of liability.
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Five Men Sentenced to Prison for Armed Carjackings, Firearms ViolationsRead the Press Release
MINNEAPOLIS – Five men have been sentenced to prison for a string of armed carjackings and various firearms violations, announced United States Attorney Andrew M. Luger.
Isaiah Stacy Alstad, 23, pleaded guilty to two counts of aiding and abetting carjacking and was sentenced yesterday before Judge John R. Tunheim to 110 months in prison. James Brock Williams, Jr., 21, and Clifton Germaine Walker, Jr., 25, were previously sentenced to 56 months and 110 months, respectively, for conspiring to use, carry, and brandish firearms during and in relation to armed carjackings. Jordan Sydney Shamah Rhodes, 23, was previously sentenced to 72 months for being a controlled substance user in possession of a firearm. And Joshoamei Deangelo Richardson, 21, was previously sentenced to 84 months in prison for aiding and abetting using, carrying, and brandishing a firearm during and in relation to an armed carjacking. A sixth codefendant, Eric Troy Ballard, Jr., 20, remains in custody pending further proceedings.
According to court documents, between May 2020 and January 2021, the defendants maintained active membership in the street gang known as the “Top 5.” The purpose of the gang was to make money for its members through criminal acts, including thefts, robberies, and distribution and sale of controlled substances. Proceeds of the money obtained through the commission of criminal acts were distributed among the Top 5 members. Top 5 members would use, carry, and possess firearms to commit these criminal acts as well as carry out acts of violence against others, including shootings and assaults. Top 5 members used social media to discuss criminal activity, recruit new members, and display cash, firearms, and controlled substances.
According to court documents, on August 25, 2020, at approximately 2:30 a.m., a victim was carjacked at gunpoint and pistol-whipped near the 1200 block of Jackson Street, in St. Paul. That same day, at approximately 6:50 a.m., a second victim was carjacked at gunpoint in the parking lot of a restaurant near White Bear Avenue in St. Paul. At approximately 9:00 a.m. that same day, a third victim was carjacked at gunpoint on Maria Avenue near Metropolitan State University in St. Paul. All six defendants were charged for their roles in these carjackings and related illegal possession and use of firearms during some of these crimes.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Saint Paul Police Department, the Minneapolis Police Department, the Columbia Heights Police Department, and the South Saint Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
Armed Career Criminal Sentenced to 15 Years in Prison for Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Minneapolis man was sentenced to 180 months in prison followed by five years of supervised release for possessing a firearm as an Armed Career Criminal, announced United States Attorney Andrew M. Luger.
According to court documents, on July 20, 2020, Minneapolis Police officers pulled over a GMC Envoy with Romelle Darryl Smith, 33, riding in it. Believing Smith was a suspect in a shooting investigation, officers ordered him out of the car. Smith told the officers he was carrying a Ruger LCP handgun with a Viridan laser attached. Police determined Smith’s identity and learned that he had an outstanding felony warrant with the Minnesota Department of Corrections. Smith was taken into custody. Prior to the July 20, 2020, arrest Smith had been convicted of four adult felonies as well as a domestic assault misdemeanor conviction, subjecting him to enhanced sentencing under the Armed Career Criminal Act.
Smith was sentenced yesterday in U.S. District Court by Judge John R. Tunheim. On August 24, 2022, he pleaded guilty to one count of felon in possession of a firearm as an Armed Career Criminal.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorney Sarah E. Hudleston prosecuted the case.