District of Minnesota

ST. PAUL, Minn. – A Chanhassen psychologist has pleaded guilty to fraudulently billing for counseling services never actually rendered, announced United States Attorney Andrew M. Luger. 

According to court documents, Charles Howard Jorenby, 57, was a licensed psychologist and owner of Life Dynamics, Inc., a counseling center located in Prior Lake. From January 2013 through February 2020, Jorenby orchestrated a scheme to defraud Blue Cross Blue Shield Minnesota (BCBS) and the Shakopee Mdewakanton Sioux Community (SMSC), which is responsible for funding the account that BCBS draws from to pay health care costs for tribal members. Jorenby submitted fraudulent bills to BCBS for counseling services he claimed to have provided to at least 29 SMSC members. In reality, Jorenby never provided counseling services to those individuals, and he used their names and dates of birth without their knowledge or permission. As a result of his false billing practices, SMSC suffered a loss of at least $555,000.

As part of his guilty plea, Jorenby also admitted that in 2017, he submitted an additional fraudulent insurance claim to State Farm Insurance following a fire at his business office. In that claim, Jorenby knowingly provided false information regarding lost income, inflating his claimed income to include earnings associated with his fraudulent BCBS billings. Jorenby received a settlement of $104,930, all or part of which is a product of his misrepresentation.

Jorenby pleaded guilty on November 29, 2022, before Senior Judge Susan Richard Nelson to one count of health care fraud. A sentencing hearing has been scheduled for April 27, 2023.

This case was the result of an investigation conducted by Homeland Security Investigations and the Minnesota Commerce Fraud Bureau.

Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.

MINNEAPOLIS – A North Dakota man has been charged in a criminal complaint with threatening to murder a United States official, announced U.S. Attorney Andrew M. Luger.

According to court documents, on September 14, 2018, Robert Philip Ivers, 69, of West Fargo, North Dakota, was convicted by a federal jury of threatening to murder a federal judge and interstate transmissions of threats and was sentenced to a prison term of 18 months, followed by three years of supervised release. On August 1, 2019, Ivers was released from Bureau of Prisons custody and began his term of supervised release under the supervision of a Unites States Probation Officer.

According to court documents, on September 1, 2020, Ivers left a profanity-laced voicemail on his probation officer’s telephone, which constituted a violation of the terms of Ivers’ conditions of supervised release. On November 17, 2022, during a revocation hearing, Ivers was sentenced to additional prison time and additional supervised release time. The conditions of Ivers’ supervised release included the immediate surrender his Minnesota driver’s license, and that he maintain appropriate communication with probation officers. At the conclusion of the hearing, Ivers was escorted to an interview room where he quickly became agitated and pounded his fists on a table, broke a chair leg, and threw his paperwork while continuously screaming the word “hate.” When Ivers left the room, he extended his middle fingers at one of the probation officers and yelled “I’m going to get some [expletive] to [expletive] kill you!”

Ivers is charged with one count of threatening to murder a United States official. He is scheduled to make his initial appearance later today in U.S. District Court before Magistrate Judge Tony N. Leung.

This case is the result of an investigation conducted by the United States Marshals Service.

This case is being prosecuted by Assistant U.S. Attorneys Lisa M. Kirkpatrick and Allison K. Ethen.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. – A Minneapolis man has been sentenced to 120 months in prison followed by three years of supervised release for making threats against Hennepin County employees and illegally possessing a firearm as a felon, announced United States Attorney Andrew M. Luger.

According to court documents, on June 24, 2021, the Hennepin County District Court issued an arrest warrant for Peter Robert Berry, 60, after he failed to appear in court for a hearing. Berry called an employee of Hennepin County Community Corrections to ask questions about his court appearance. During the call Berry became angry and began yelling and threatened to “shoot up the place.” That same day, Berry left a voice message for a Hennepin County Probation Officer in which Berry demanded a call back before he starts “killing everybody.” On June 25, 2021, Berry called a Hennepin County Service Center employee who informed him of the active warrant for his arrest due to his failure to appear in court. Upon learning about the warrant, Berry stated that he was going to “come down and kill everybody, all the judges, clerks, and deputies.” On June 29, 2021, Berry left a voice message for a Hennepin County Public Defender in which Berry expressed his dissatisfaction with the representation he received in his criminal case and threatened that people were going to die and stated that he knew where the public defender lived.

According to court documents, on July 10, 2020, and on April 7, 2021, Berry unlawfully possessed three firearms, including a Beretta .25 caliber semi-automatic pistol, a Smith and Wesson 9 mm pistol, and a Diamondback DB15 rifle. Because Berry has prior felony convictions in Hennepin, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

Berry was sentenced today in U.S. District Court before Judge Eric C. Tostrud. On June 22, 2022, Berry pleaded guilty to one count of possessing a firearm as a felon and one count of interstate transmission of a threat.

This case is the result of an investigation conducted by the FBI, the Hennepin County Sheriff’s Office, and the Minneapolis Police Department.

Assistant U.S. Attorney Allison K. Ethen prosecuted the case.

MINNEAPOLIS – A Wisconsin man has been indicted for orchestrating a $35 million bank fraud scheme, announced U.S. Attorney Andrew M. Luger.

According to court documents, between 2020 and August 2022, Matthew Thomas Onofrio, 31, of Eau Claire, devised and executed a scheme to defraud multiple federally-insured banks including MidCountry Bank headquartered in Bloomington. As part of his scheme, Onofrio operated a business entity called Northwoods Management LLC which he used to market a real estate investing program for investors to acquire commercial properties. Onofrio allegedly engaged in several fraudulent acts as part of the scheme, including causing false information to be submitted to lenders financing investors’ real estate purchases and altering purchase agreements to support higher appraisals of the properties.  According to the indictment, Onofrio withheld information from the lenders, including the fact that he was lending money to the investors to help them purchase the properties and would temporarily wire funds to investors’ accounts to create the appearance that they had more available assets than they in fact had. The charges seek forfeiture of more than $35 million seized in the investigation.

Onofrio is charged with three counts of bank fraud. On November 23, 2022, Onofrio made his initial appearance in U.S. District Court before Magistrate Judge Tony N. Leung.

This case is the result of an investigation conducted by the FBI, the IRS, and the Federal Deposit Insurance Corporation – Office of Inspector General.

This case is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. – Sumalee Intarathong has pleaded guilty to her role in a large-scale international Thai sex trafficking organization, announced United States Attorney Andrew M. Luger.

“Today’s guilty plea marks the final conviction in a years-long international sex trafficking prosecution resulting in 37 convictions,” said U.S. Attorney Andrew M. Luger. “Ms. Intarathong, worked directly with others at the highest levels in the organization to victimize hundreds of vulnerable women for her own financial gain.”

According to court documents, the criminal organization conspired to make money by compelling hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, Intarathong, 61, served as a boss/trafficker for the organization. Each trafficked victim was “owned” by Intarathong or another boss/trafficker, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. Intarathong and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.

According to court documents, Intarathong and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.

According to court documents, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere.

“I’m proud of the HSI agents and law enforcement partners who helped bring Intarathong to justice,” said HSI Saint Paul Special Agent in Charge Jamie Holt. “Intarathong’s heinous acts victimized countless individuals and their families. HSI will continue the work necessary to dismantle and destroy these human trafficking organizations while providing care and support to the victims.”

“For more than seven years, Ms. Intarathong had been responsible for sex trafficking across the nation,” said Justin Campbell, IRS CI Special Agent in Charge, Chicago Field Office. “And like many criminals she tried to hide her ill-gotten gains through legitimate purchases – such as vehicles and real estate. Fortunately for American taxpayers, IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds.”

Intarathong was arrested in Belgium in August 2016 and remained in custody until she was extradited to the United States in February 2021. Intarathong pleaded guilty earlier today before Senior Judge Donovan W. Frank to one count of conspiracy to commit sex trafficking and one count of conspiracy to engage in money laundering. A sentencing hearing has not yet been scheduled.

This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office, and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium.

Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.

MINNEAPOLIS – A Red Lake man has been sentenced to 144 months in prison followed by three years of supervised release for a 2020 murder that took place on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.

According to court documents, on September 12, 2020, Ralph Edward Cloud, Jr., 38, killed his cousin, Allen Smith, in Smith’s home. Concerned about a relationship between his wife and Smith, Cloud walked several miles to Smith’s residence and attacked him, using a metal cabinet and its drawers to beat Smith to death.

Cloud was sentenced today in U.S. District Court before Senior Judge Michael J. Davis. On July 14, 2022, Cloud pleaded guilty to one count of murder in the second degree.

This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.

Assistant U.S. Attorneys Emily A. Polachek and Deidre Y. Aanstad prosecuted the case.

MINNEAPOLIS– A Minneapolis tax preparer has pleaded guilty to federal tax violations, announced United States Attorney Andrew M. Luger. 

According to court documents, Sue Yang, 48, of Circle Pines, operated a tax preparation business in Minneapolis. Yang participated in the IRS’s e-file program, a specialized program the IRS offers to qualified tax preparers, and was assigned a unique Electronic Filing Identification Number (known as an “EFIN”). In 2010, the IRS conducted a periodic suitability review of Yang and found that he failed to file a 2009 personal income tax return and that he owed substantial federal income taxes from tax years 2005 through 2008. The IRS notified Yang repeatedly that his failure to resolve his tax obligations would result in sanctions, including suspension of his EFIN or his expulsion from the IRS e-file program. In August 2012 Yang was suspended from the IRS e-file program and was no longer authorized to electronically file tax returns.

From August 2012 through April 2022, despite his suspension from the e-file program, Yang operated surreptitiously as an e-filing tax preparer. Yang disguised his unauthorized participation in the e-file program by enlisting others to obtain unique EFINs, which Yang then used to file thousands of tax returns electronically on behalf of his customers. These tax returns were electronically transmitted to the IRS purporting to have been prepared by other individuals. From 2012 through 2020, Yang impeded the IRS’s suitability review and circumvented his e-file suspension by electronically filing more than 26,000 tax returns using misappropriated EFINs.

From 2018 through 2021, Yang received approximately $765,000 in compensation from working as a tax preparer but, in order to further obscure his unauthorized conduct, he did not report any income related to his tax preparation business. Yang’s unlawful conduct resulted in a combined federal tax loss of approximately $214,297.

Yang pleaded guilty today before Judge Eric C. Tostrud to one count of filing a false federal income tax return and one count of corruptly impeding and obstructing the administration of the internal revenue laws. A sentencing hearing has not yet been scheduled.

This case was jointly investigated by IRS – Criminal Investigations and the Treasury Inspector General for Tax Administration (TIGTA).

Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.

MINNEAPOLIS – A Kansas man was sentenced to 77 months in prison followed by three years of supervised release for an early morning armed robbery of a Menards store in West St. Paul, announced United States Attorney Andrew M. Luger.

According to court documents, on September 27, 2021, Cornelius Graham, 61, of Kansas City, Kansas, went to the Menards store in West St. Paul and hid inside the store until it closed. Early on the morning of September 28, 2021, Graham confronted the store manager as he was opening the store for the day. Graham brandished a firearm and took cash from the store manager.

Graham was sentenced yesterday in U.S. District Court before Senior Judge Ann D. Montgomery. On June 1, 2022, Graham pleaded guilty to one count of interference with commerce by robbery. Because Graham was on supervised release for separate robbery convictions in the District of Kansas, Graham received an additional sentence of 23 months, increasing his total sentence to 100 months in prison.

This case was the result of an investigation conducted by the FBI and the West St. Paul Police Department.

Assistant U.S. Attorney David P. Steinkamp prosecuted the case.

MINNEAPOLIS – A federal criminal complaint has been filed against a Woodbury man charging him with illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents and a law enforcement affidavit, on October 18, 2022, law enforcement observed what appeared to be a narcotics transaction between Jason Steven Kearns, 38, and the occupant of a vehicle parked outside of Kearns’s Woodbury residence. Law enforcement initiated a traffic stop of the vehicle, searched it, and found approximately one half-pound of methamphetamine. Following the traffic stop, law enforcement obtained and executed a search warrant at Kearns’s home. As officers approached the residence, Kearns fled on a motorcycle, carrying what appeared to be a package of methamphetamine in his jacket. Officers attempted to stop Kearns, but he was able to escape. Law enforcement recovered three firearms from the residence.

On November 14, 2022, law enforcement encountered Kearns in the driver’s seat of a truck outside of a restaurant in Woodbury. The officers called for backup and two Woodbury Police squad vehicles arrived and attempted to stop Kearns by activating their lights. One squad vehicle stopped in front of Kearns’s truck and the other approached from the side. Kearns accelerated his truck forward, ramming the police vehicle head-on. Kearns reversed his truck and drove into a curb and was pinned by the two police vehicles. Kearns exited his vehicle and ran from officers on foot to a parking lot across the street. Officers saw that Kearns had his right hand on what appeared to be a semiautomatic pistol. Officers drew their firearms and issued multiple commands to Kearns to drop his firearm. Kearns continued walking through the parking lot and then stopped and knelt down, still refusing to drop the firearm. Kearns stated to officers that he had a firearm in his hand. Eventually, Kearns dropped the firearm and surrendered and was taken into custody. The firearm, a Smith & Wesson 9mm semiautomatic pistol, was loaded with a round chambered and 11 rounds in the magazine. Kearns was also carrying a large knife on his person. After searching Kearns’s truck, officers recovered quantities of methamphetamine, hypodermic needles, and a digital scale.

Because Kearns has multiple prior felony convictions including assault and armed robberies, he is prohibited under federal law from possessing firearms or ammunition at any time.

Kearns is charged with one count of possession of firearms as a felon. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Tony N. Leung. He was ordered to remain in custody pending a formal detention hearing on November 28, 2022.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington County Drug Task Force, and the Woodbury Police Department.

Assistant U.S. Attorneys Emily A. Polachek and Thomas Calhoun-Lopez are prosecuting the case.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS –Twin brothers Quantez Demarco Ward and Cortez Demario Ward, age 19, have pleaded guilty to illegal possession of a firearm and illegal possession of ammunition, respectively, announced United States Attorney Andrew M. Luger.

According to court documents, in January of 2022, the brothers were both charged in Hennepin County District Court for possession of machineguns after they were caught in possession of firearms that had each been modified with auto sears. An auto sear, also known as a switch, is a device used to convert a semi-automatic firearm into a fully automatic firearm and is considered a machinegun under federal law. In May, both Cortez and Quantez Ward pleaded guilty to their Hennepin County charges and were released on terms of probation.

On May 6, 2022, the brothers were pulled over by the Maple Grove police department. During that traffic stop, Cortez Ward was in possession of a Polymer 80 pistol with an extended magazine loaded with 19 rounds of ammunition on his person. On July 19, 2022, law enforcement executed a federal arrest warrant at the Ward brothers’ residence. Inside, law enforcement found multiple firearms, including a 9mm Ruger rifle, a H&K .22 caliber rifle and a Pioneer 7.26 mm Pistol.

Yesterday, Quantez Ward pleaded guilty in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of possession of a firearm as a felon related to the firearms recovered on July 19, 2022. On October 25, 2022, Cortez Ward pleaded guilty in U.S. District Court before Senior Judge David S. Doty to one count of possession of ammunition as a felon arising from the May 6, 2022, traffic stop. Sentencing dates will be scheduled at a later time.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Minneapolis Police Department, and the Maple Grove Police Department.

These cases are being prosecuted by Assistant U.S. Attorney Lindsey Middlecamp.

MINNEAPOLIS – A federal jury convicted an Olmsted County man for conspiring to distribute controlled substances and for possession with intent to distribute cocaine after being arrested with four kilograms of cocaine in his rental car, announced United States Attorney Andrew M. Luger.

Following a four-day trial before U.S. District Judge Nancy E. Brasel, Christopher Allen Edwards, 39, was convicted on November 17, 2022, of one count of conspiracy to distribute controlled substances, specifically, cocaine, heroin, fentanyl, and methamphetamine, and one count of possession with intent to distribute cocaine. A sentencing hearing will be scheduled at a later time.

According to the evidence presented at trial, in early 2021, law enforcement received information that Edwards was dealing drugs in the Rochester area. Law enforcement determined that Edwards and his co-conspirator, Chloe Michelle Johnson, 25, were dealing a variety of drugs throughout Rochester and Southeastern Minnesota, from May 2021 through October 16, 2021, the date of their arrest.

In October 2021, law enforcement tracked Edwards’ rental vehicle as he traveled to Austin, Texas, and back to Minnesota in a quick turnaround road trip. On October 16, 2021, law enforcement stopped Edwards and Johnson in Edwards’ rental car once they drove back into Olmsted County. Edwards was caught with four kilograms of cocaine in his backpack in his rental car. That same day, law enforcement executed search warrants on Edwards’ and Johnson’s residences and found various amounts of cocaine packaged for distribution, heroin, fentanyl, and methamphetamine.

On May 12, 2022, Johnson pleaded guilty to her role in the drug trafficking conspiracy. She is scheduled to be sentenced on February 9, 2023.

This case is the result of an investigation conducted by the Olmsted County Sheriff’s Office, the Southeast Minnesota Violent Crime Enforcement Team, and the Drug Enforcement Administration.

Assistant U.S. Attorney Nathan H. Nelson and Special Assistant U.S. Attorney Hillary A. Taylor tried the case.

MINNEAPOLIS- A Rochester drug trafficking ringleader has pleaded guilty to conspiracy to distribute methamphetamine, announced U.S. Attorney Andrew M. Luger. 

According to cour documents, from September 2021 through February 2022, Jerry Lee Milliken, 40, led a large-scale methamphetamine trafficking conspiracy that was based in Rochester, Minnesota and operated throughout southeastern Minnesota and elsewhere. Milliken organized the delivery of methamphetamine from a supplier in Kansas City, Missouri, to sub-distributors in the Rochester area. Milliken also collected and received drug proceeds and facilitated communications in support of the conspiracy. Between the fall of 2021 and the winter of 2022, law enforcement seized approximately 80 pounds of methamphetamine from the conspiracy during various enforcement operations.

Milliken pleaded guilty yesterday in U.S. District Court before Senior Judge Susan Richard Nelson to one count of conspiracy to distribute methamphetamine. He faces a mandatory minimum sentence of 10 years and up to life in prison. A sentencing hearing will be scheduled at a later time.

Aaron Raymond Dombovy, 30, one of Milliken’s coconspirators, pleaded guilty Wednesday, November 16, also to one count of conspiracy to distribute methamphetamine. He also faces a mandatory minimum sentence of 10 years and up to life in prison.

This case is the result of an investigation conducted by the Drug Enforcement Administration, the Rochester Police Department, the Minnesota Bureau of Criminal Apprehension, the Southeast Minnesota Violent Crimes Enforcement Team, and the Olmsted County Sheriff’s Office.

Assistant U.S. Attorney Allen A. Slaughter Jr. is prosecuting the case.

MINNEAPOLIS – A Blaine man has been arrested and charged in a federal criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents and a law enforcement affidavit, on August 10, 2022, at approximately 1:26 p.m., deputies with the Anoka County Sheriff’s Office responded to a residential burglary in Ham Lake. A video surveillance system at the residence showed a man, later identified as Carson Thomas McCoy, 21, pried open the front door of the residence and later sped away in a stolen black BMW sedan. Among the items stolen from the residence were a Springfield Armory .45 caliber handgun, two loaded ammunition magazines, and $1,500 in cash.

According to court documents and a law enforcement affidavit, less than 30 minutes later, the Anoka County Sheriff’s Office received reports of an incident involving shots fired around Lexington Avenue NE and 155th Avenue NE in Ham Lake. It was reported that a black BMW sedan nearly collided with three people riding motorcycles. Someone in the BMW then held a handgun out of the BMW's sunroof and fired several shots at the three people on the motorcycles. Shortly thereafter, law enforcement located the BMW and attempted to stop the vehicle, but it fled before eventually crashing into an Anoka County Sheriff’s Office patrol vehicle. The driver, McCoy, and a female passenger were taken into custody. Following a search of the BMW, law enforcement recovered the Springfield Armory handgun previously stolen from the residence, a Bersa .380 caliber handgun, narcotics, $851 in cash, and a false identification card.

According to court documents and a law enforcement affidavit, on July 19, 2022, McCoy used the false identification card at car dealership in Eden Prairie to arrange a test drive of the stolen black BMW sedan and then never returned the car.

McCoy is charged with one count of possession of a firearm as a felon. He appeared yesterday in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright and was ordered to remain in detention pending further proceedings.

This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Blaine Police Department, and the Anoka County Sheriff’s Office.

Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A Rochester man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, on May 25, 2022, Marcus Anthony Jackson, 49, was in possession of a Taurus G2C 9MM pistol. Officers with the Rochester Police Department executed a search warrant at Jackson’s residence in Rochester. At the beginning of the search, Jackson indicated there were no firearms present. However, as an officer began to search above the kitchen cabinets, Jackson informed the officer that he had a gun above the refrigerator. Because he has multiple prior felony convictions in Olmsted, Ramsey and Hennepin Counties, Jackson is prohibited under federal law from possessing firearms or ammunition at any time.

Jackson pleaded guilty yesterday in U.S. District Court before Senior Judge Joan N. Erickson to one count of felon in possession of a firearm. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rochester Police Department.

Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.

MINNEAPOLIS – A Stearns County man was sentenced to 262 months followed by five years of supervised release for conspiring to distribute methamphetamine while incarcerated, announced U.S. Attorney Andrew M. Luger.

According to the evidence presented at his trial, in spring 2019, Robert Edward Maloney, Jr., 39, while incarcerated in a Minnesota state prison, coordinated with others outside the prison to sell methamphetamine. While Maloney was incarcerated, he communicated with his co-conspirators via jail calls. Law enforcement agents obtained recordings of Maloney’s jail calls, which revealed Maloney’s direction and coordination, including arranging meetings and discussing methamphetamine prices and quantities. Maloney also obstructed justice by threatening a witness.

Maloney was sentenced yesterday before Senior Judge David S. Doty. On April 8, 2022, after a four-day jury trial, Maloney was found guilty of conspiring to distribute methamphetamine.

This case was the result of an investigation conducted by the FBI Safe Streets Task Force, the Minnesota Bureau of Criminal Apprehension, the Cannon River Drug & Violent Offender Task Force, the Paul Bunyan Drug Task Force, and the Minnesota Department of Corrections.

This case was prosecuted by Assistant U.S. Attorneys Bradley M. Endicott and Joseph S. Teirab.

MINNEAPOLIS – A federal grand jury returned an indictment against a Minneapolis woman for orchestrating an accounts receivable factoring fraud scheme and a PPP loan fraud scheme, announced U.S. Attorney Andrew M. Luger.

According to court documents, Khemwattie Singh, 52, was the chief executive officer of Global Medical Services, a Minnesota-based healthcare solutions company. Between June and October 2018, Singh and others entered into factoring contracts with MD Capital Solutions, a Florida-based investment company, to purchase the accounts receivable of Global Medical Services and Minnesota International Medicine for more than $2.6 million. Factoring is a form of short-term financing in which a business sells its accounts receivable to a third-party at a discount.

According to court documents, Singh defrauded MD Capital Solutions by failing to pay over the receivables as they were collected and falsely represented to MD Capital Solutions that no funds had been received. Instead, Singh pocketed the money, wiring more than $5 million overseas to bank accounts in Morocco and shell companies she controlled.

According to court documents, in September 2019, MD Capital Solutions sued Global Medical Services in state court in Minnesota and Florida. By the end of 2019, Global Medical Services shut down and no longer had any employees on its payroll. In April 2020, Singh submitted a false and misleading application for Paycheck Protection Program (PPP) funds in the name of Global Medical Services seeking approximately $383,408. Despite the fact that Global Medical Services was not operational, Singh falsely stated on the application that the average monthly payroll was $153,363 and that the company had approximately 40 employees. As a result of Singh’s material falsehoods and omissions, she received approximately $296,800 in PPP funds. Singh transferred $116,600 to her personal bank account and used the funds to pay for personal expenses, including a home loan and credit card payments.

Singh is charged with seven counts of wire fraud. She made her initial appearance in U.S. District Court yesterday before Magistrate Judge Elizabeth Cowan Wright.

This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.

Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A federal grand jury returned an indictment against a Duluth man for possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, on September 11, 2022, Joseph Francis Butler, 32, entered a gas station in Duluth and argued with the store clerk over change from a transaction. Butler then walked behind the counter and punched the clerk. During the scuffle, a Springfield, model XD, .45 caliber pistol fell out of Butler’s waistband. Butler picked up the firearm, pointed it at the victim, and fired several times. The victim was not directly hit by the rounds but suffered powder burns and a graze wound. Butler then fled the store. Butler was eventually apprehended in Bloomington with the same firearm.

Because Butler has multiple prior felony convictions in Cook County, Illinois, he is prohibited under federal law from possessing firearms or ammunition at any time.

Butler is charged with one count of possessing a firearm as a felon. He previously made his initial appearance on a related complaint before Magistrate Judge Leo. I Brisbois in Duluth.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Duluth Police Department and the Bloomington Police Department.

Assistant U.S. Attorneys Alexander D. Chiquoine and Esther Soria Mignanelli are prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A Maplewood man has pleaded guilty to illegal possession of a pipe bomb, announced U.S. Attorney Andrew M. Luger.

According to court documents, on April 28, 2022, law enforcement executed a search warrant at the Maplewood residence of Dylan Raymond Orr, 27, after discovering photos of two pipe bombs sent from Orr’s phone to a third-party. The images showed that there were small BBs affixed to the exterior casing of the pipe bombs. During the execution of the search warrant, law enforcement discovered two six-inch pipes – one with BBs affixed, 4 end caps, and explosive powder, components which could be readily converted to a destructive device. Orr did not have a registration to possess these devices from the National Firearms Registration and Transfer Record as required by law.

Orr pleaded guilty today before U.S. District Judge Nancy E. Brasel to one count of  possession of an unregistered destructive device. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savage Police Department.

Assistant U.S. Attorney LeeAnn K. Bell is prosecuting the case.

ST. PAUL, Minn. – A Brooklyn Park man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, on July 27, 2022, Tyrone Mashaun White, 34, was in possession of a Springfield Hellcat 9mm semi-automatic pistol while driving in Brooklyn Center. Officers of the Minneapolis Police Department found the firearm when they searched White’s vehicle pursuant to a search warrant. Officers also recovered from the vehicle a black bag containing a pill bottle with eight methamphetamine pills, and baggies of fentanyl with a total weight of approximately 2.5 grams. Because White has multiple prior felony convictions in Hennepin and Goodhue Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

White pleaded guilty today before U.S. District Judge Wilhelmina M. Wright to one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the FBI and Minneapolis Police Department.

Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.

MINNEAPOLIS – A Minneapolis man was sentenced today to 120 months in prison followed by three years of supervised release for possessing a stolen firearm, announced United States Attorney Andrew M. Luger. 

According to court documents, on August 27, 2021, Michael James Jackson, 39, was speeding through red lights in a vehicle with his girlfriend in North Minneapolis when officers with the Minneapolis Police Department spotted and pursued the speeding vehicle. Jackson abandoned the vehicle and fled on foot while his girlfriend remained in the front passenger seat on the side of the road. Jackson fired 15 shots into the air from a stolen Smith & Wesson .40 caliber semi-automatic pistol approximately 50 yards from the stopped vehicle and the responding officers.

Prior to August 27, 2021, Jackson had been convicted of several felonies, including terroristic threats, aggravated robbery, and assault.

On July 8, 2022, Jackson pleaded guilty before Senior Judge Michael J. Davis to one count of possession of a stolen firearm.

This case was the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorney Chelsea A. Walcker prosecuted the case.

MINNEAPOLIS – A Hennepin County man has been sentenced to 115 months followed by five years of supervised release for a violent armed carjacking, announced U.S. Attorney Andrew M. Luger.

According to court documents, on June 5, 2021, Jerome Lee Swanson, 21, approached an individual who was driving a 2005 Buick LaCrosse in Minneapolis. Swanson asked for a ride to a nearby location and,. when the victim and Swanson arrived, Swanson pulled out a pistol and pointed it at the victim, and demanded they give Swanson the vehicle. A struggle ensued and the victim was shot in the hip. Swanson fled from the scene driving the victim’s vehicle. Swanson was later apprehended with the vehicle and the pistol used to facilitate the carjacking.

Swanson pleaded guilty on July 8, 2022, before U.S. District Chief Judge John R. Tunheim to one count of carjacking and one count of brandishing a firearm during and in relation to a crime of violence.

This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department

Assistant U.S. Attorney David P. Steinkamp prosecuted the case.

ST. PAUL, Minn. – A Bloomington man has pleaded guilty to his role in a $1.4 million Medicaid fraud conspiracy, announced United States Attorney Andrew M. Luger.

According to court documents, Abdirahman Yonis, 35, was a mental health practitioner who worked with Minnesota Multicultural Counseling Clinic, a clinic with offices in St. Paul, Brooklyn Park, and Roseville. As part of the scheme, Yonis and his co-conspirators knowingly prepared and signed client progress notes for mental health services—and related interpreter verification forms—that were not actually rendered and submitted claims to the Minnesota Medicaid program for reimbursement of mental health services and the related interpretation of those services. As a result of the false and fraudulent claims, the Medicaid program paid more than $1.4 million for services that never occurred.

Yonis pleaded guilty yesterday before U.S. District Judge Eric C. Tostrud to one count of wire fraud. A sentencing hearing will be scheduled at a later time.

In 2021, the United States Attorney’s Office charged two separate cases (21-cr-56 and 21-cr-57) that involved over $5.4 million in fraudulent Medicaid billing for mental health services and the purported interpretation of those services. Since that time, 15 defendants have pleaded guilty, one has been convicted at trial, and three remain fugitives from law enforcement. The convicted defendants will be required to pay restitution to the Medicaid program for the amounts paid out on their fraudulent billing practices.

This case is the result of an investigation conducted by the FBI; the U.S. Department of Health and Human Services, Office of Inspector General; and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.

Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing are prosecuting the case.

MINNEAPOLIS – A St. Paul man has been sentenced to 280 months prison followed by five years of supervised release for methamphetamine trafficking and firearms violations, announced U.S. Attorney Andrew M. Luger.

On June 16, 2022, following a three-day trial before U.S. District Judge Nancy E. Brasel, William Howard Proto Jr., 45, was convicted on two counts of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking, and one count of possessing a firearm as a felon. During the trial, Proto pleaded guilty to one count of possessing a firearm as a felon.

According to court documents, on June 29, 2021, officers with the Bloomington Police Department arrested Proto after he was found in the driver’s seat of a stolen Cadillac Escalade. Officers searched the vehicle and found nine pounds of methamphetamine, 200 grams of cocaine, digital scales, more than $50,000 in cash, and a loaded firearm. Following his arrest, Proto was indicted in U.S. District Court on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm as a felon.

On August 19, 2021, pursuant to a federal warrant, agents located Proto at a hotel in Woodbury, Minnesota. Officers arrested Proto as he was wheeling a luggage cart in the parking lot towards his SUV. On the luggage cart in a black duffle bag, officers found five pounds of methamphetamine, $5,000 in cash, an assault style rifle, and loaded magazines. Proto also had a loaded 9-mm handgun in his pocket. Officers searched Proto’s SUV and found additional ammunition.

This case was the result of an investigation conducted by the Drug Enforcement Administration and the Bloomington Police Department.

Assistant U.S. Attorneys Andrew S. Dunne, Joseph S. Teirab, and Ruth Shnider prosecuted the case.

ST. PAUL, Minn. – A Plymouth woman has pleaded guilty to her role in two separate fraud cases, including the $250 million fraud scheme that exploited a federally-funded child nutrition program and a Medicaid fraud scheme, announced United States Attorney Andrew M. Luger. 

According to court documents, Anab Artan Awad, 52, admitted that from September 2020 through January 2022, she knowingly participated with others in a fraudulent scheme to obtain and misappropriate millions of dollars in Federal Child Nutrition Program funds that were intended as reimbursements for the cost of serving meals to children.

According to her guilty plea, Awad used a non-profit entity called Multiple Community Services to carry out her scheme. Through Multiple Community Services, Awad controlled purported Federal Child Nutrition Program food distribution sites in Osseo, Minneapolis and Faribault, under the sponsorship of Sponsor A. As a food site operator, Awad was responsible for serving actual food to children through the Federal Child Nutrition Program. However, in furtherance of the scheme, Awad received Federal Child Nutrition Program funds based upon fraudulent information, such as falsified invoices and meal count records with substantially inflated figures. Awad received Federal Child Nutrition Program funds that substantially exceeded the amounts of food that she either purchased or served to children. 

According to her guilty plea, one of Awad’s Minneapolis sites fraudulently claimed to have served more than 1.5 million meals to children from January 2021 to April 2021, which amounts to approximately 12,600 meals to children daily. In reality, Awad’s operations at that location served a fraction of the meal amounts claimed. Also, despite Awad’s claims, the purported food vendor for her location, in fact, did not provide food during the time period claimed. In addition, none of the names on the attendance rosters submitted for “Golden Meadows,” which was one of Awad’s food sites in Faribault, matched the names of actual children enrolled in the Faribault School District. 

It was further part of the scheme that Awad received fraudulent proceeds from the Federal Child Nutrition Program into accounts that she controlled, which included, among other deposits, approximately $3.7 million directly from Sponsor A, and approximately $3 million from a purported vendor that, in fact, provided no food to Awad.

In total, Awad fraudulently claimed $11,237,106.41 in Federal Child Nutrition Program funds, of which the Minnesota Department of Education paid out $9,668,384.09.  In all, Awad and her purported vendors obtained $9,333,858.24 in fraud proceeds for herself and others.

This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations and the U.S. Postal Inspection Service.

This case is being proseucted by Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

Awad also pleaded guilty today in a separate case to one count of conspiracy to commit wire fraud. According to court documents, from April 2015 through July 2016, Awad worked as an interpreter for A-Z Friendly Languages and Itasca Interpretation Services, both companies were approved providers that billed services to the Minnesota Medicaid program. In this role, Awad conspired with mental health practitioners at Minnesota Multicultural Counseling and Consultant (MMCC) to sign billing forms for mental health and related interpretation services that were not provided. Awad’s fraudulent claims caused a $99,154 loss to the Minnesota Medicaid program as part of the broader $4 million scheme to defraud, executed by MMCC and its associated interpreters.  Awad transitioned to her scheme to defraud the Federal Child Nutrition Program from September 2020 through January 2022 while awaiting trial for her fraudulent billing practices as an interpreter for MMCC.

This case is the result of an investigation conducted by the FBI, the U.S. Department of Health and Human Services Office of the Inspector General and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.

This case is being prosecuted by Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing.

Awad pleaded guilty today in U.S. District Court before Judge Eric E. Tostrud to one count of wire fraud in the first case and one count conspiracy to commit wire fraud in the second case.  A sentencing hearing will be scheduled at a later time.

MINNEAPOLIS – A federal grand jury returned an indictment against a Minneapolis woman for running a drug money laundering conspiracy on behalf of a large-scale fentanyl and marijuana dealer, announced U.S. Attorney Andrew M. Luger.

According to court documents, between December 2018 and August 2019, Phouvanh Keokaythinh, 36, knowingly conspired with others to conduct financial transactions that involved the proceeds of fentanyl and marijuana trafficking. As part of the conspiracy, Keokaythinh kept large amounts of cash drug proceeds for Lyndon Swarn, a large-scale fentanyl and marijuana dealer, at her family residence in Bloomington. At any given time, Keokaythinh stashed up to $80,000 at the residence. Swarn’s drug income was generated from the production and sale of illegal fentanyl-laced Oxycodone pills, as well as the production and sale of large amounts of marijuana.

According to court documents, Keokaythinh used cash from Swarn’s drug proceeds to purchase a farm property in Ironwood, Michigan. Swarn and his associates used this property to illegally grow large amounts of marijuana. Keokaythinh and others laundered drug proceeds into a bank account owned by L&S Management LLC, a shell company used for the purchase, maintenance, and upkeep of the property in Ironwood. Keokaythinh also directed others to maintain a credit card that was used for Swarn’s personal spending and other expenses related to the drug trafficking conspiracy. Between January 2017 and March 2019, Keokaythinh and others used drug proceeds to make approximately $117,782.72 in payments on the credit card.

According to court documents, on January 31, 2020, Keokaythinh willfully and knowingly made false statements in an application for a passport. In the application, Keokaythinh falsely claimed that she had lost her passport while on a trip to Los Angeles when, in reality, she knew that her passport had been seized by law enforcement on October 23, 2019, during the execution of a search warrant at the Ironwood property.

Keokaythinh is charged with one count of money laundering conspiracy, one count of concealment money laundering, and one count of false statements in application for a passport. She made her initial appearance in U.S. District Court on October 31, 2022, before Magistrate Judge Tony N. Leung.

On June 2, 2022, Swarn was convicted in Hennepin County of aiding and abetting first-degree murder in relation to the New Year’s Eve 2019 kidnapping and murder of a local real estate agent. On May 17, 2021, Swarn was convicted in U.S. District Court for possession with intent to distribute more than 33,000 fentanyl-laced Oxycodone pills.

This case is the result of an investigation conducted by the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, and the Hopkins Police Department, with assistance from the Hennepin County Attorney’s Office.

Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. – A St. Paul man has pleaded guilty to possessing a firearm as an Armed Career Criminal, announced U.S. Attorney Andrew M. Luger.

According to court documents, on March 17, 2022, Geraldo Jay Dilworth, 34, was in possession of a Springfield Armory .45 caliber pistol while waiting to board a train at the Union Depot Station in St. Paul. Because he has multiple prior felony convictions in Ramsey and Washington Counties, Dilworth is prohibited under federal law from possessing firearms or ammunition at any time.

Dilworth pleaded guilty today before Senior U.S. District Judge Susan Richard Nelson to one count of felon in possession of a firearm as an Armed Career Criminal. He faces a mandatory minimum sentence of 15 years imprisonment. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.

Assistant U.S. Attorney Lauren O. Roso is prosecuting the case.

ST. PAUL, Minn. - A Maple Grove man has been convicted by a federal jury for his role in a $1.4 million Medicare fraud conspiracy, announced United States Attorney Andrew M. Luger.

Following a four-day trial before U.S. District Judge Eric C. Tostrud, Eskender M. Yousuf, 40, was convicted on all seven counts of the superseding indictment, including conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The charged conspiracy consisted of nine total defendants. Six of Yousuf’s co-conspirators pleaded guilty prior to trial and two remain fugitives from law enforcement.

As proven at trial, Yousuf was a mental health practitioner who worked with Live Better, LLC, a patient services company with offices in Roseville and Minneapolis. As part of the scheme, Yousuf and his co-conspirators knowingly prepared and signed client progress notes for mental health services—and related interpreter verification forms—that were not actually rendered and submitted claims to the Minnesota Medicaid program for reimbursement of mental health services and the related interpretation of those services. As a result of the false and fraudulent claims, the Medicaid program paid more than $1.4 million for services that never occurred. A sentencing hearing will be scheduled at a later time.

This case is the result of an investigation conducted by the FBI; the U.S. Department of Health and Human Services, Office of Inspector General; and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.

Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing tried the case.

ST. PAUL, Minn. – A Coon Rapids man has pleaded guilty to making interstate threats against a U.S. Senator, announced U.S. Attorney Andrew M. Luger.

According to court documents, on June 11, 2022, Brendon Michael Daugherty, 35, left two voicemail messages on the field office telephone of a U.S. Senator located outside the state of Minnesota. Both messages contained threats of violence directed at the U.S. Senator. In his first message, Daugherty stated, “You and the Republican Party should be proud that you’re pushing me to become a domestic terrorist. Have a nice [expletive] day; can’t wait to kill ya.” In his second message, Daugherty stated, “I also just wanted to note, thank God the Republican Party is against gun control laws because it would keep guns out of the hands of a person that was disabled and volatile like I am, but you guys are totally against that. So, I may actually get to carry out my nefarious goals.” Field office staff retrieved and recorded the messages and reported them to U.S. Capitol Police.

Daugherty pleaded guilty today in U.S. District Court before Senior Judge Eric C. Tostrud to one count of interstate transmission of a threat to injure the person of another. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police.

Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.

MINNEAPOLIS – A White Bear Lake man was sentenced to 120 months in prison, followed by 15 years of supervised release, ordered to pay $8,000 in restitution, and $3,000 to a victim assistance fund for possession of images and videos depicting child sexual abuse, announced United States Attorney Andrew M. Luger.

According to the defendant’s guilty plea and court documents, Justin John Mitchell, 28, a registered sex offender, was found in possession of thousands of images and videos of child sexual abuse on two different occasions in or around August 2019 and January 2022. Among these were depictions of the sexual abuse of prepubescent minors. Mitchell was on supervision for child pornography possession in Ramsey County at the time of the offenses.

On June 3, 2022, Mitchell pleaded guilty to two counts of possession of child pornography. He was sentenced yesterday in U.S. District Court by Judge Katherine M. Menendez.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

This case is the result of an investigation by the FBI and the Ramsey County Sheriff’s Office.

This case was prosecuted by Special Assistant U.S. Attorney Hillary A. Taylor.

MINNEAPOLIS – A Minneapolis man has been sentenced to 72 months in prison, followed by three years of supervised release, for possession with intent to distribute fentanyl and possession of a machine gun, announced United States Attorney Andrew M. Luger.

According to court documents, on June 23, 2021, law enforcement was looking for Brian Silva, 21, who had multiple active state warrants for his arrest. Police officers were able to track Silva to a hotel in Bloomington, Minnesota. Officers conducted surveillance of Silva’s vehicle in the parking lot and placed spokes behind Silva’s car in case he tried to flee. Silva eventually got into his car, backed up, punctured his tires, and then fled on foot through the parking lot. During the foot chase, Silva discarded a satchel before surrendering to police. Inside of the satchel, officers found 331 counterfeit prescription pills that contained fentanyl, an unloaded 9mm Glock handgun with an auto sear attached (commonly referred to as a "switch,” enabling the firearm to fire as an automatic machinegun), a 30-round magazine loaded with 9mm ammunition, and approximately $4,800 cash.  In July 2021, federal agents arrested Silva in Arizona following a drug transaction and found Silva in possession of over 327 grams of fentanyl pills, and over $1,550 in cash.

Silva was sentenced today by U.S. District Senior Judge Susan Richard Nelson. On June 15, 2022, Silva pleaded guilty to one count of possessing a machinegun and one count of intent to distribute fentanyl.

This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, the Minneapolis Police Department, and the Bloomington Police Department.

Assistant U.S. Attorneys Justin Wesley and Benjamin Bejar prosecuted the case.

MINNEAPOLIS – Mohamed Muse Noor, aka “Deeq Darajo,” has been indicted for his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.

According to court documents, Noor, 37, was the president and owner of Xogmaal Media Group, a Minneapolis-based non-profit company that ran an online news outlet focused on the Somali community in Minnesota. Xogmaal Media Group was enrolled as a Federal Child Nutrition Program site under the sponsorship of Feeding Our Future. Noor claimed that the site would be located in Minneapolis.

According to court documents, from November 2020 through 2022, Noor claimed that Xogmaal Media Group was serving as many as 1,500 children every day, seven days a week. Noor submitted fake meal counts that he signed as the site supervisor. Noor also submitted fake invoices purporting to document the purchase of food to be served at the Xogmaal Media Group site.

According to court documents, between February and June 2021, Noor claimed to have served approximately 580,000 meals to children at the Xogmaal Media Group site. Based on these fraudulent claims, Noor and his co-conspirators claimed that Xogmaal Media Group was entitled to more than $1.3 million in Federal Child Nutrition Program funds. Ultimately, Xogmaal Media Group received nearly $500,000 in Federal Child Nutrition Program funds between June and August 2021. Noor paid nearly 80 percent of these funds over to entities controlled by Abdikerm Eidleh. The memo lines of the checks written to Eidleh’s companies falsely indicated that the payments were for “supplies” and to repay loans. In reality, the money was transferred to Eidleh’s companies in order to misappropriate and launder the proceeds of the fraud scheme.

Noor, who was initially arrested and charged by criminal complaint on September 26, 2022, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Noor made his initial appearance today in U.S. District Court before Magistrate Judge Tony N. Leung.

This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, Chelsea A. Walcker, and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A St. Paul man has pleaded guilty to his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced United States Attorney Andrew M. Luger. 

According to court documents, Abdul Abubakar Ali, 40, admitted that from December 2020 through January 2022, he knowingly and willfully conspired with others to participate in a fraudulent scheme to obtain and misappropriate millions of dollars in federal child nutrition program funds that were intended as reimbursements for the cost of serving meals to underprivileged children.

According to his guilty plea, Ali used a non-profit entity called Youth Inventors Lab as a shell company to carry out his scheme. Ali and his co-conspirators enrolled Youth Inventors Lab in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. After enrolling in the program, Ali and his co-conspirators immediately began submitting claims for reimbursement for purportedly serving meals to hundreds or thousands of children a day. In support of these fraudulent claims, Ali and his co-conspirators prepared and submitted fake invoices purporting to document the purchase of food from a vendor, S & S Catering. But S & S Catering did not provide Youth Inventors Lab any meals and Youth Inventors Lab did not serve any meals.

According to his guilty plea, Ali submitted fake invoices from his company, Bilterms Solutions, to Youth Inventors Lab. The invoices were for purportedly providing technology services, which Ali and Bilterms Solutions did not actually perform. The purpose of the invoices was to hide the source of the funds Ali was receiving for participating in the fraud. Ali received approximately $82,000 from Youth Inventors Lab. Ali also received payments through Bilterms Solutions from co-conspirators made through another company, Franklyn Transportation. Those payments were made to Ali for his participation in the fraud scheme. Ali received $47,000 from Franklyn Transportation.

In total, Youth Inventors Lab claimed to have served over 1.3 million meals between December 2020 through June 2021 and fraudulently received $3,029,786 in reimbursements from Feeding Our Future.

Ali pleaded guilty yesterday in U.S. District Court before Judge Nancy E. Brasel to one count of conspiracy to commit wire fraud. Sentencing hearings will be scheduled at a later time.

This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

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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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.

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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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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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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 – 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.