District of Minnesota

ST. PAUL, Minn. – An Apple Valley man was sentenced today to 27 months in prison followed by 3 years of supervised release for defrauding his employer out of more than $930,000.

According to court documents, in February 2014, Gregg William Johnson, 59, was hired as the Chief Financial Officer for a Minnesota-based manufacturing company. As part of his job duties, Johnson was responsible for overseeing and tracking all cash flow for the company and had signatory authority on the company’s bank accounts. Between 2014 and July 2020, Johnson stole approximately $930,000 in company funds by issuing checks from the company’s bank accounts to cover personal expenses such as credit card payments, mortgage payments, and college tuition for his children. To conceal his theft, Johnson added false entries into the company’s accounting software to make the cashflow appear balanced.

On March 4, 2021, Johnson pleaded guilty to one count of wire fraud.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after Senior U.S. District Judge Donovan W. Frank sentenced the defendant.

This case was the result of an investigation conducted by the FBI and the Apple Valley Police Department.

This case was prosecuted by Assistant U.S. Attorneys Allison K. Ethen and Kimberly A. Svendsen.

ST. PAUL, Minn. – A Golden Valley man was sentenced yesterday to 270 months in prison followed by a lifetime of supervised release for transporting images and videos depicting the sexual abuse of minors.

According to court documents, in February 2020, Robert Lawrence Stace, 37, a registered sex offender, downloaded hundreds of images and videos depicting the sexual abuse of minors. Stace accessed the child exploitation files from the computer lab of a community center while on supervised release for his prior child sexual exploitation convictions. This conduct also violated the terms of Stace’s state supervised release and Stace is presently serving a Minnesota Department of Corrections sentence for these violations.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.

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

This case was the result of an investigation conducted by the FBI and the Minneapolis Police Department, with assistance from Hennepin County Probation Officers.

This case was prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.

MINNEAPOLIS – A St. Paul woman has been indicted on federal sex trafficking charges for allegedly recruiting six minor victims to engage in commercial sex acts, announced Acting United States Attorney W. Anders Folk.

According to court documents, from May 2020 through December 2020, Gisela Castro Medina, 19, and co-defendant Anton Joseph Lazzaro, 30, conspired with each other and others to recruit and solicit six minor victims to engage in commercial sex acts. Castro Medina, who was arrested on August 12, 2021, in Okaloosa County, Florida, made her initial appearance earlier today before Magistrate Judge Hope T. Cannon, in U.S. District Court in Pensacola, Florida.

The indictment charges Castro Medina with one count of conspiracy to commit sex trafficking of minors, five counts of sex trafficking of minors, and one count of obstruction. Castro Medina will be transported to the District of Minnesota and will remain in custody pending further court proceedings. Co-defendant Lazzaro will remain in custody pending a formal detention hearing, which has been rescheduled for August 24, 2021.

Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Anyone with information about this matter is encouraged to call the FBI Minneapolis Division at 763-569-8000.

This case is the result of a joint investigation by the FBI and the Bureau of Criminal Apprehension-led Minnesota Human Trafficking Investigators Task Force, with assistance from the Minneapolis Police Department, the West Hennepin Public Safety Department, and the Wright County Sheriff’s Office.

Assistant U.S. Attorneys Angela M. Munoz, Emily A. Polachek, and Laura M. Provinzino are prosecuting the case.

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

ST. PAUL, Minn. – A Minneapolis man has been arrested and indicted on federal sex trafficking charges for allegedly recruiting six minor victims to engage in commercial sex acts, announced Acting United States Attorney W. Anders Folk.

According to court documents, from May 2020 through December 2020, Anton Joseph Lazzaro, a/k/a “Tony Lazzaro,” 30, conspired with others to recruit and solicit six minor victims to engage in commercial sex acts. Lazzaro, who was taken into custody earlier today by FBI agents, made his initial appearance in United States District Court before Magistrate Judge Becky Thorson.

The indictment charges Lazzaro with one count of conspiracy to commit sex trafficking of minors, five counts of sex trafficking of minors, one count of attempted sex trafficking of a minor, and three counts of obstruction. Lazzaro will remain in custody pending a formal detention hearing on August 16, 2021.

Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Anyone with information about this matter is encouraged to call the FBI Minneapolis Division at 763-569-8000.

This case is the result of an investigation conducted by the FBI, the Minnesota Bureau of Criminal Apprehension, the Minneapolis Police Department, the West Hennepin Public Safety Department, and the Wright County Sheriff’s Office.

Assistant U.S. Attorneys Laura M. Provinzino, Angela M. Munoz, and Emily A. Polachek are prosecuting the case.

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

ST. PAUL, Minn. – A federal jury found a Minneapolis man guilty of possessing images and videos depicting the sexual abuse of minors, announced Acting U.S. Attorney W. Anders Folk.

Following a four-day trial before Judge Eric C. Tostrud, Gene Paul Schave, 50, was convicted of one count of possession of child pornography.

According to the evidence presented at trial, Schave is a registered sex offender who was convicted in 2010 in Minnesota state court for possessing child pornography. On October 3, 2019, while on supervised release for his previous conviction, Schave was found to be in possession of an Asus tablet that contained more than 3,000 images and videos depicting the sexual abuse of minors.

This case is the result of an investigation by the FBI, the Bureau of Criminal Apprehension, and the Minneapolis Police Department.

This case was tried by Assistant U.S. Attorneys Miranda E Dugi and Emily A. Polachek. 

MINNEAPOLIS – A federal jury found a St. Paul man guilty of arson and riot after looting, damaging, and burning businesses in downtown Minneapolis, announced Acting U.S. Attorney W. Anders Folk.

Following a four-day trial before Judge Joan N. Ericksen, Victor Devon Edwards, 32, was convicted of one count of riot and one count of arson.

According to the evidence presented at trial, on the evening of August 26, 2020, Edwards joined a large crowd that had gathered in downtown Minneapolis following false rumors regarding police involvement in the death of a man on Nicollet Mall earlier that evening. Throughout the course of the evening, Edwards engaged in acts of rioting, looting, and other property damage. Beginning around 9:00 p.m., Edwards and his co-defendant Shador Tommie Cortez Jackson worked together to steal women’s purses and other items from Saks Off Fifth. Edwards sent text messages to various acquaintances telling them, “I got M[ichael] K[ors] purses.” In response to a text message from one acquaintance asking why he was downtown, Edwards simply replied, “Lootin.”

Shortly before 11:00 p.m., Edwards and Jackson were captured on video surveillance using a construction sign to break into the Target Corporation’s headquarters building. Once inside, Jackson started a fire inside the mailroom while Edwards added a liquid accelerant to fuel the fire.

This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the FBI, the Minneapolis Fire Department, and the Minneapolis, Bloomington, and Richfield Police Departments.

This case was tried by Assistant U.S. Attorneys Nathan H. Nelson and Chelsea A. Walcker.

MINNEAPOLIS – A Minneapolis man pleaded guilty today to seven violent armed robberies of Twin Cities businesses, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on July 28, 2020, Derrick Lee Spillman, 40, robbed three Twin Cities businesses, including a Holiday gas station and two liquor stores. During the robberies, Spillman pointed handguns at employees and ordered them to the ground or physically assaulted them. On July 30, 2020, Spillman continued his crime spree by robbing two additional Holiday gas stations, a Speedway gas station, and a Subway restaurant. During these incidents, Spillman pointed a handgun at employees, racked the slide of the gun, and demanded cash from the registers.

Spillman pleaded guilty to seven counts of Hobbs Act robbery and one count of brandishing a firearm during and in relation to a crime of violence.

“Working in tandem with our federal and local law enforcement partners, we will continue to pursue, arrest, and prosecute violent, armed criminals such as Mr. Spillman,” said Acting U.S. Attorney W. Anders Folk.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Fridley Police Department, the Brooklyn Center Police Department, the New Hope Police Department, and the St. Paul Police Department.

Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.

MINNEAPOLIS – A Minneapolis man has been indicted by a federal grand jury for a Hobbs Act robbery that resulted in the shooting death of a store clerk, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on April 27, 2021, Marlow Ramsey Carson, 30, robbed Blue Sky Wireless and West Bend Furniture located in Minneapolis. During the robbery, Carson, armed with a 9mm semiautomatic handgun, used force, threats of force, violence, and injury, resulting in the victim’s death. Carson has prior felony convictions and is therefore prohibited from possessing firearms or ammunition at any time.

Carson is charged with one count of interference with commerce by robbery, one count of possession of a firearm as a felon, and one count of possession of ammunition as a felon. Carson made his initial appearance today in U.S. District Court before Magistrate Judge Becky R. Thorson.

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

Assistant U.S. Attorneys Harry M. Jacobs and Samantha H. Bates are prosecuting the case.

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

MINNEAPOLIS – An Illinois man was sentenced today to 105 months in prison followed by three years of supervised release for setting fire to a cell phone store in Minneapolis in the aftermath of the killing of George Floyd.

According to court documents, on May 28, 2020, Matthew Lee Rupert, 29, a resident of Galesburg, Illinois, posted messages on his Facebook account referencing the public protests occurring in the Twin Cities following the death of George Floyd, including one that stated, “I’m going to Minneapolis tomorrow who coming only goons I’m renting hotel rooms.” On May 29, 2020, Rupert broadcast a Facebook Live video indicating that he was in Minneapolis, Minnesota. Rupert announced that he came “to riot,” and is depicted handing out artillery-shell fireworks, encouraging violence against law enforcement officers, actively damaging property, breaking into buildings, and looting businesses.

According to the defendant’s guilty plea and documents filed with the court, the video also depicts Rupert asking for lighter fluid before entering a boarded-up Sprint store located on Nicollet Avenue in Minneapolis. Rupert canvassed the store and eventually entered a backroom while telling others that he had located a store safe. Rupert and others then knocked several boxes into a pile on the ground. Rupert doused the pile of boxes with lighter fluid and then directed another individual—at the time a juvenile—to light the pile on fire. Rupert fled the building and stated, “I lit it on fire!” The store sustained significant damage as a result of the fire.

“Matthew Rupert chose to drive more than 400 miles from his home in Illinois to Minnesota to engage in violence and destruction, all while broadcasting it for the world to see. Peaceful protest was not on his agenda,” said Acting U.S. Attorney W. Anders Folk. “Arson, looting, property damage, and the glorification of it, will not be tolerated. Today, justice has caught up with Mr. Rupert as he must now account for his crimes.”

“Today, we count yet another violent offender as held to account for his reckless and deliberate damage to our community,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. “Mr. Rupert made his way to Minneapolis for the express purpose of instigating lawless behavior on our local streets. He demonstrated no purpose other than endangering peaceful protests by actively encouraging violence against law enforcement and personally destroying community businesses. Together with our local partners, FBI Minneapolis and ATF St. Paul continue to hold indifferent criminals like Mr. Rupert accountable for their dangerous and divisive criminal conduct in the Twin Cities.”

“Arson is a dangerous act of violence,” said Acting Special Agent in Charge Jon Ortiz, St. Paul Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “Arson poses a great threat to public safety. ATF works diligently to secure public safety. The defendant in this case committed a reckless act of violence on unsuspecting members of this community. We are thankful that no one was seriously injured or killed as a result of this crime. This sentencing will send a message to anyone who considers conducting these types of violent acts that they will not be tolerated. ATF will continue to work alongside our law enforcement partners to ensure that this community remains a safe place.”

This case was the result of an investigation conducted by the FBI Minneapolis Field Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the FBI Chicago Field Office, the FBI Springfield Field Office, and the Chicago Police Department.

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

MINNEAPOLIS – A Minneapolis man pleaded guilty today to possessing a firearm as a felon, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on May 21, 2020, law enforcement arrested Deshawn Tyrone Braziel, 36, who had an outstanding warrant and was suspected in connection with a shooting that occurred in Minneapolis on April 16, 2020. At the time of his arrest, Braziel was wearing a backpack containing a loaded, Springfield XD 9mm pistol, 94 ecstasy pills, a credit card in his name, and a digital scale. Because Braziel has prior felony convictions, including a previous conviction for a drive-by shooting in 2005, he is prohibited under federal law from possessing firearms or ammunition.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

Assistant U.S. Attorney Allison Ethen is prosecuting the case.

MINNEAPOLIS – A Blaine man pleaded guilty yesterday to possession of eight firearms as an unlawful user of a controlled substance, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on August 15, 2020, a protest took place at the Minneapolis Police Department’s 5th Precinct building. The event became violent and destructive when individuals began throwing rocks and other objects, breaking windows, firing mortar-type fireworks at the building and at officers stationed on the roof, spray painting the building, and using paint to obscure the video surveillance cameras. After reviewing video surveillance footage, investigators were able to identify Thomas Wilder Moseley, 29, as one of the individuals who was spray painting the front windows of the building. The building sustained several thousand dollars of damages a result of the incident.

According to court documents, on October 15, 2020, Moseley was present inside the Hennepin County Government Center where protesters had gathered during a court appearance for the four former Minneapolis police officers charged in the death of George Floyd. Hennepin County Sheriff’s Deputies arrested Moseley on probable cause based on his involvement in the August 15 incident. At the time of his arrest, Moseley was carrying a loaded Glock, model 26 Gen5, 9 mm semi-automatic pistol.

According to court documents, following Moseley’s arrest, Minneapolis Police officers executed a search warrant at Moseley’s residence in Blaine, Minnesota, and recovered two firearms, more than 1,400 rounds of ammunition, 96 grams of marijuana, and other drug paraphernalia. Officers also obtained a search warrant for Moseley’s Toyota Tacoma, which was parked in downtown Minneapolis near the Government Center. Among other things, officers recovered from the vehicle five firearms, a large amount of ammunition, a hatchet, a crowbar, gas masks, and controlled substances, including marijuana, psychedelic mushrooms, and cocaine.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.

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ST. PAUL, Minn. – A federal jury convicted a Minneapolis man for illegal possession of a firearm and ammunition after a shooting incident that took place in broad daylight, announced Acting U.S. Attorney W. Anders Folk.

Following a four-day trial before Judge Wilhelmina M. Wright, Johnnie Lamar Haynes, 33, was convicted of one count of possessing a firearm as a felon and one count of possessing ammunition as a felon.

According to the evidence presented at trial, on August 5, 2019, Minneapolis police officers responded to a shots-fired call at a gas station near Lowry Avenue and Logan Avenue North in Minneapolis. Upon arrival, officers found 11 discharged cartridge casings on the street in front of the gas station. Video surveillance footage showed Haynes interacting with two men inside the gas station. After leaving the gas station the two other men got in a vehicle and drove off. Minutes later, the two men circled the block in their vehicle and returned to the gas station. Haynes then began shooting at the vehicle as it drove off. A nearby business was in the line of Haynes’s gunfire and was struck by multiple rounds. Surveillance video footage from the business captured the bullets entering the building, causing employees to duck and take shelter.

“This defendant discharged a firearm near a busy intersection in broad daylight, showing total disregard for human life,” said Acting U.S. Attorney W. Anders Folk. “This type of brazen gun violence is unacceptable in our communities and must be stopped.”

Because Haynes has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time. Haynes faces up to ten years in prison on each count. At sentencing, a federal district court judge will determine the sentence accounting for the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

This case was tried by Assistant U.S. Attorney Thomas Calhoun-Lopez.

ST. PAUL, Minn. – Two St. Paul area men involved in a Twin Cities-based mail theft scheme have been sentenced to prison for their roles in the conspiracy.

Sonny Vang Xiong, 32, of Maplewood, and Davis Her, 36, of St. Paul, each pleaded guilty to one count of conspiracy to commit theft of mail. Her also pleaded guilty to one count of felon in possession of a firearm. The defendants were sentenced to 36 and 78 months in prison, respectively.

According to court documents, from at least August 2020 through November 2020, Xiong and Her conspired with others to steal mail and packages from post offices, apartment complexes, and mailboxes. The defendants broke into apartment buildings and other locations where many mailboxes could be accessed at once to steal personal mail, business mail, packages, and other items. The defendants used stolen postal keys, pry bars, and other burglary tools to steal the mail. The defendants would look for checks, money orders, identification documents, credit and debit cards, and other items of value. Xiong and Her used the stolen checks and money orders to create fraudulent checks and falsified money orders that they gave to others to cash. Xiong and Her also used stolen account numbers, IDs, and personal identifying information to create fake checks and fake identification documents.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendants.

This case was the result of an investigation conducted by the United States Postal Inspection Service, with assistance from the St. Paul Police Department, the Roseville Police Department, the Coon Rapids Police Department, the Ramsey County Sheriff’s Office, and the St. Croix County (Wisconsin) Sheriff’s Office. United States Secret Service, and the United States Department of State, Diplomatic Security Service.

Assistant U.S. Attorney Sarah E. Hudleston prosecuted the case.

MINNEAPOLIS – United States District Judge Ann D. Montgomery has issued an order closing the receivership of Thomas J. Petters and discharging the Receiver in one of the nation’s largest and most complex Ponzi schemes. Through the efforts of the Receiver, the United States, and related bankruptcy trustees more than $722 million was distributed to victims and creditors.

In issuing the order, Judge Montgomery remarked that the receivership was “prompted by one of the largest and most complex Ponzi schemes in U.S. history.” Judge Montgomery went on to state that “the primary objective of the Receivership was to preserve assets for victims and creditors…After more than 120 public [court] hearings and nearly 3,300 [case] docket entries, the work of the Receiver has concluded.”

The United States commenced the receivership case in October of 2008 to enjoin the ongoing fraud by Petters and the other named defendants and to preserve all assets owned by the defendants for ultimate restitution and forfeiture in the criminal investigations of the defendants, which were pending at the time.

The United States immediately moved to freeze the assets of the named defendants, including all assets owned by Petters. On October 14, 2008, the Court issued the injunction against Petters and appointed Douglas A. Kelley as the Receiver of the assets of Petters and the other named defendants.  At the time none of the defendants had yet been indicted.

The Receiver immediately began taking control of the assets and property owned by Petters and the other named defendants. Petters and the other defendants had created a vast web of more than 150 entities over the course of thirteen years – entities that were all propped up by fraud. Some of the entities, however, were legitimate businesses that employed innocent persons.

The Receiver placed several of the major entities into bankruptcy, including Sun Country Airlines and Polaroid Corporation, for the protection of innocent employees and creditors. Throughout the receivership, the Receiver also managed real estate, categorized assets, liquidated property, paid employees, commenced claw-back litigation, entered into settlement agreements, and worked in coordination with the bankruptcy and government forfeiture process to achieve an orderly disentanglement of the fraud. 

“Following the criminal conviction of Tom Petters in 2009 for orchestrating a $1.9 billion Ponzi scheme, the work of recovering assets on behalf of victim investors and creditors had just begun,” said Acting U.S. Attorney W. Anders Folk. “Throughout this case the U.S. Attorney’s Office sought to remain transparent, thorough, and persistent in our pursuit of justice. I commend the work of the Receiver and all parties involved in recovering more than $722 million on behalf of victims.”

On December 1, 2008, Petters was indicted on multiple counts of mail fraud, wire fraud, money laundering, and conspiracy for orchestrating a $1.9 billion Ponzi scheme. On December 2, 2009, a federal jury found Petters guilty of all 20 counts against him, and he was later sentenced by U.S. District Judge Richard H. Kyle to 50 years in federal prison. Other defendants were convicted in related criminal proceedings. As part of their sentencing judgments, Petters and other defendants were ordered to forfeit assets obtained through their criminal activity, including real estate, bank, and investment accounts, vehicles, and other assets. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victim investors who lost money in connection with the scheme. The proceeds of all forfeited assets are being distributed to victim investors. 

MINNEAPOLIS – A Canadian national has been indicted by a federal grand jury on charges related to the sexual abuse of minors occurring on the Bois Forte Indian Reservation, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on June 22, 2018, Brady John Hillis, 32, of Kenora, Ontario, knowingly engaged in sexual contact with two minor victims who were under 12 years of age.

Hillis is charged with two counts of abusive sexual contact with a child under 12 years of age and one count of aggravated sexual abuse of a child under 12 years of age. Hillis made his initial appearance today in U.S. District Court before Magistrate Judge David T. Schultz.

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

Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.

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

MINNEAPOLIS – A St. Paul man was sentenced yesterday to 18 months in prison followed by three years of supervised release for assaulting and attempting to rob a postal employee.

According to court documents, on June 4, 2020, James Wilbert Jackson, Jr., 23, tried to pick up a package from a post office located in Oakdale, Minnesota, but the postal employee was not authorized to give Jackson the package because his name and address did not match the recipient or sender address on the package. Jackson left the post office and returned multiple times that same day, each time trying to convince the postal employee to give him the package. Shortly before the post office closed for the day, Jackson returned and again demanded the package. When the employee walked away, Jackson leapt over the service counter, followed the employee into the back office, and punched the employee repeatedly in the head. The two struggled and fell to the ground before postal employees were able to restrain Jackson. As a result of the assault, the employee suffered scrapes, abrasions, and bruises to his head and knees, as well as a badly broken finger that required surgery to repair. A subsequent search of the package Jackson was trying to retrieve showed that it contained approximately 500 grams of marijuana.

“This defendant attacked an innocent U.S. Postal Service employee, a public servant, who was simply doing his job,” said Acting U.S. Attorney W. Anders Folk. “Postal workers are frontline employees who serve the public during challenging times, particularly throughout the COVID-19 pandemic, and they deserve to be safe and free from violence as they carry out their duties.”

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.

This case was the result of an investigation conducted by the U.S. Postal Inspection Service and the Oakdale Police Department.

This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.

MINNEAPOLIS – A Red Lake man has been arrested and charged with one count of second degree murder and four counts of assault with a dangerous weapon in connection to the shooting death of a Red Lake Tribal Police Officer, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on July 27, 2021, officers with the Red Lake Tribal Police Department (“RLTPD”) responded to a call to conduct a welfare check on David Brian Donnell, Jr., 28, at his residence in Redby, Minnesota. Five RLTPD officers responded to Donnell’s residence. Upon arrival, the officers found Donnell standing outside on the porch and attempted to have him walk towards the officers, but Donnell instead went inside the residence. Because Donnell had an active tribal warrant and had refused to comply, the officers breached the door. Gunfire erupted from inside the residence in the direction of the officers. Officer Ryan Bialke was struck by gunfire through the front door. Gunfire continued from inside the house towards the other four officers on the scene. At one point, an RLTPD officer returned fire. Officers then retreated into the woods to escape the continued gunfire. Officer Bialke succumbed to his injuries and died on the scene. Shortly thereafter, officers arrested Donnell at a nearby residence.

This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the Red Lake Tribal Police Department, the Minnesota Bureau of Criminal Apprehension (BCA), the Beltrami County Sheriff’s Office, and U.S. Customs and Border Protection.

Assistant U.S. Attorney Melinda A. Williams is prosecuting the case.

A criminal 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 Maple Grove man pleaded guilty today to fraudulently applying for $9,619,046.46 from the U.S. Small Business Administration’s Paycheck Protection Program, of which he fraudulently obtained and misappropriated more than $1.7 million, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, Aditya Raj Sharma, 47, was the founder, CEO, and president of Crosscode Inc., a cloud-based software development company originally headquartered in Maple Grove, Minnesota. In November 2019, Sharma was removed as an officer and terminated from the company by Crosscode’s board of directors. Between May 2020 and July 2020, Sharma created three separate technology companies, Kloudgaze Inc., Neoforma LLC, and Mokume LLC.

From April 2020 through August 2020, Sharma applied for 16 loans for $9,619,046.46 through the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”) from ten different lenders by submitting false and fraudulent applications under the names of his various technology companies. As part of his fraud scheme, Sharma submitted fabricated supporting records, made false statements about the number of employees he had and the amount of payroll expenses he incurred, and made false statements about the relevant corporate entities and intended use of the loan proceeds.

For example, on April 26, 2020, Sharma submitted an application in the name of “Crosscode dba Kloudgaze” seeking a $562,500 PPP loan. On the application Sharma falsely stated that “Crosscode dba Kloudgaze” was in operation on February 15, 2020, even though Sharma did not create Kloudgaze until May 2020. In addition, Sharma falsely stated that he was the 100% owner and CEO of Crosscode, that Crosscode did business under the name of Kloudgaze, and that “Crosscode dba Kloudgaze” had approximately 29 employees on its payroll even though records from the State of Minnesota show Sharma paid no wages to a single Kloudgaze employee. In support of the application, Sharma included fraudulent supporting documentation, including fabricated bank account statements.

As a result of Sharma’s fraud scheme, lenders approved three of his PPP applications and deposited $1,773,600 in PPP funds into bank accounts controlled by Sharma. Rather than using the funds for permissible business expenses, Sharma used the money to pay off unrelated legal debts, fund new business ventures, transfer approximately $14,000 to a financial account in India, and pay for home improvements, including landscaping and the installation of a $64,300 backyard pool at his residence.

During the investigation, law enforcement obtained warrants to seize approximately $674,980.76 in fraudulent proceeds held in multiple bank accounts controlled by Sharma. As part of the plea agreement, these seized funds will be forfeited by Sharma to the Unites States.

This case is the result of an investigation conducted by the FBI.

This case is being prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Jordan L. Sing.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

MINNEAPOLIS – An Eden Prairie woman was charged today with illegally straw purchasing 14 firearms, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, between March 23, 2021, and July 10, 2021, Tess Fair, 21, has purchased 14 separate firearms at guns stores in the Twin Cities area. Fair illegally purchased thirteen 9-millimeter semi-automatic handguns and one .22 caliber AR style pistol. Surveillance video footage from one of the gun stores shows Fair purchasing a gun at the direction of another individual who is a documented member of the Minneapolis street gang Young and Thuggin’ (YNT). Two of the guns she purchased have been recovered at crime scenes in the Twin Cities area where one or more victims were shot.

“Buying guns on behalf of someone else who is prohibited from possessing guns is a federal crime,” said Acting U.S. Attorney W. Anders Folk. “The straw buying process sets up a dangerous pipeline that too often puts firearms in the hands of criminals. Federal law enforcement is committed to interrupting that process.”

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

Assistant U.S. Attorney Jeffrey S. Paulsen is prosecuting the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

A criminal 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 Minneapolis man has been taken into federal custody and charged with being a felon in possession of a firearm and ammunition, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, in July 2021, law enforcement officers obtained a search warrant for a Minneapolis residence belonging to Nicholas Robert Briski-Smith, 25, who had “probable cause pickup” warrants for two recent alleged felony assaults, one of which involved a shooting, and multiple outstanding warrants. While conducting surveillance in preparation for the execution of the search warrant, officers observed Briski-Smith exit his residence and drive away in a stolen vehicle. Officers followed Briski-Smith to a nearby corner store where they took him into custody. Following the arrest, officers recovered a loaded Stevens Arms 12-gauge short-barreled shotgun that was affixed to Briski-Smith's chest. During the search of Briski-Smith’s residence, officers recovered a Marlin, semiautomatic, .22-caliber rifle with a modified barrel and additional rounds of ammunition. Because Briski-Smith has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.

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

Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.

A criminal 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 Hastings woman and former elected official was sentenced today to 27 months in prison for misappropriating more than $650,000 in public funds.

According to court documents, from December 2012 through October 2020, Maryann Helen Stoffel, 70, used her elected position as the Clerk of the Township of Vermillion to misappropriate more than $650,000 of Township funds. Although Stoffel had signature authority over the Township’s bank account, Township checks required at least two signatures. As part of the fraud scheme, Stoffel, at times, forged the signatures of the Township’s Treasurer and the Chairman of the Township Board on Township checks. At other times, Stoffel solicited signatures from the Township’s Treasurer and the Chairman of the Township Board on blank Township checks by falsely representing that she would use the checks to pay the Township’s bills. Instead of using the funds to pay the Township’s bills, Stoffel transferred the funds to her personal bank account for her own use and benefit. Stoffel concealed her fraud from the Township and from the State of Minnesota by excluding the unauthorized payments to herself on the Township’s annual report.

On March 16, 2021, Stoffel pleaded guilty to one count of wire fraud. In addition to her prison sentence, U.S. District Judge Patrick J. Schiltz ordered Stoffel to serve one year of supervised release and pay $652,674.66 in restitution.

This case was the result of an investigation conducted by the FBI.

This case was prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.

ST. PAUL, Minn. – A Rochester man pleaded guilty today to arson of a Minneapolis pawn shop, announced Acting U.S. Attorney W. Anders Folk.

According to his guilty plea, on May 28, 2020, Montez Terriel Lee, 26, along with others, broke into the Max It Pawn Shop on East Lake Street in Minneapolis. Surveillance video footage showed Lee pouring a fire accelerant around the pawn shop and lighting the accelerant on fire. The fire destroyed the building. A second video showed Lee standing in front of the burning pawn shop and Lee could be heard saying, “[expletive] this place. We’re gonna burn this [expletive] down.”

This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the Minneapolis Police Department, the Rochester Police Department, and the Minnesota State Fire Marshal Division.

This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

 

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ST. PAUL, Minn. – A Canadian man pleaded guilty today to possessing a firearm as an alien illegally or unlawfully in the United States, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on January 10, 2021, Muzamil Aden Addow, 30, and his co-defendant Dayne Adrian Sitladeen, 29, were stopped by a Minnesota State Patrol Trooper near Fergus Falls, Minnesota. The defendants were traveling between 95-100 miles per hour in a Chevrolet Silverado pickup truck with Texas license plates. When the Trooper approached the vehicle, Addow provided an Ontario, Canada, driver’s license with a false name.

According to court documents, after detecting the odor of marijuana in the vehicle and receiving suspicious and inconsistent statements from Addow and Sitladeen, the Trooper searched the vehicle. As a result of the search, law enforcement officers recovered a total of 67 firearms and numerous pistol magazines, including 15 high-capacity pistol magazines, from four bags in the truck—one pistol magazine was partially loaded with live ammunition rounds.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minnesota State Patrol.

This case is being prosecuted by Assistant U.S. Attorney Samantha Bates.

ST. PAUL, Minn. – A Brooklyn Park man pleaded guilty today to conspiracy to commit arson of the Great Health and Nutrition store in St. Paul, announced Acting United States Attorney W. Anders Folk.

According to court documents, on May 28, 2020, Samuel Elliot Frey, 20, and his co-conspirators, including co-defendant McKenzy Ann DeGidio Dunn, 20, and Conspirator 1 (who was 17 years old at the time of the arson), joined other individuals who had gathered near the Great Health and Nutrition store located at 1360 University Avenue West, in St. Paul. Frey and his co-conspirators arrived together to the Midway area near University Avenue and walked through multiple businesses before they arrived inside the Great Health and Nutrition retail store. While inside the store, Frey took a bottle of hand sanitizer and poured the contents onto a downed shelving unit located on the floor. Frey then lit paper on fire and placed the flaming paper where he had poured the contents of a hand sanitizer bottle. Frey applied additional hand sanitizer in an attempt to accelerate the fire.  The Great Health and Nutrition store sustained fire damage as a result of Frey’s conduct. 

According to court documents, after May 28, 2020, Frey spoke with co-defendant Dunn and with Conspirator 1 each on at least one occasion. In Frey’s respective discussions with his co-conspirators, Frey instructed them to be untruthful to law enforcement by falsely reporting that another person had supposedly started the fire at the Great Health and Nutrition store.  At the time of Frey’s instructions to his co-conspirators, Frey knew this was a lie. 

On October 26, 2020, co-conspirator Dunn pleaded guilty to one count of conspiracy to commit arson.  On May 10, 2021, United States District Judge Nancy E. Brasel sentenced Dunn to three years of probation and $31,578 in restitution. Frey’s sentencing hearing will be scheduled for a later date.

This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the St. Paul Police Department, the St. Paul Fire Department, Brooklyn Park Police Department, the Minnesota State Fire Marshal Division, and the FBI.

This case is being prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Joseph S. Teirab.

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ST. PAUL, Minn. – A Minneapolis man pleaded guilty today to possession of a stolen firearm, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on August 20, 2020, officers with the Minneapolis Police Department responded to shots fired at a Taco Bell on Broadway Avenue in Minneapolis. Upon arrival, officers observed several individuals and vehicles fleeing the scene. Officers observed one of the vehicles, a white Chevy Impala driven by Wesley Rayvon Johnson, 29, speed through residential streets before entering the eastbound lanes of I-94, traveling westbound. Johnson exited onto Highway 252, again traveling in the wrong direction, before crashing into another vehicle. Johnson exited the Chevy Impala and threw a firearm into a storm drain. Officers were able to remove the grate from the storm drain and recover a Glock 23 Gen. 4, .40 caliber semi-automatic pistol, which had previously been reported stolen. Johnson admitted that he knew the firearm was likely stolen because he bought it on the street without filling out any paperwork. Johnson is also a convicted felon and is therefore prohibited from possessing firearms.

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

This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.

MINNEAPOLIS – A St. Cloud man, and self-described member of the Boogaloo Bois, pleaded guilty yesterday to possessing two drop-in auto sears, a device that converts a semi-automatic firearm into an unlawful fully automatic firearm, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, in November 2020, the FBI initiated an investigation into Michael Paul Dahlager, 27, a self-proclaimed member of the “Boogaloo Bois,” a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government. In November 2020, the FBI learned through a confidential human source (“CHS”) that Dahlager was in possession of a 3D-printed “drop in auto sear” and a homemade firearm suppressor. An “auto sear” is a part designed and intended for use in converting a semi-automatic weapon to shoot automatically by a single pull of the trigger and is a machine gun under federal law.

According to court documents, on February 3, 2021, Dahlager delivered two auto sears to the CHS and he demonstrated how the devices should be inserted into a firearm. At the time of his arrest in April 2021, law enforcement recovered six additional auto sears and a silencer from Dahlager’s vehicle and home.

This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section.

MINNEAPOLIS – A federal jury convicted a Minneapolis man for engaging in abusive sexual contact on an airplane, announced Acting U.S. Attorney W. Anders Folk.

Following a three-day trial before Judge Nancy E. Brasel, Neeraj Chopra, 40, was convicted on one count of abusive sexual contact.

According to the evidence presented at trial, in April 2019, Chopra knowingly engaged in abusive sexual contact with a 16-year-old victim who was seated next to him aboard a Jet Blue flight from Boston to Minneapolis. During the flight, Chopra retrieved a blanket from his backpack and draped it over his lap, with a portion of the blanket also covering the victim’s right leg. Chopra put his hand under the blanket and began inappropriately touching the victim. Chopra ignored the victim’s multiple requests to stop and continued to inappropriately touch the victim.

Chopra faces up to two years in prison and a fine up to $250,000. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.

This case was the result of an investigation conducted by the Federal Bureau of Investigation, with assistance from the Minneapolis-St. Paul Airport Police.

This case was tried by Assistant U.S. Attorneys Lauren O. Roso and Michelle E. Jones.

ST. PAUL, Minn. – A federal jury convicted a California man for participating in a methamphetamine and heroin trafficking conspiracy, announced Acting U.S. Attorney W. Anders Folk.

Following a three-day trial before Judge Eric C. Tostrud, Joel Llamas Garcia, 49, was convicted of a single count of conspiracy to distribute methamphetamine and heroin.

According to the evidence presented at trial, on September 21, 2020, law enforcement received information that three California men, Garcia and two co-conspirators, had traveled to Minnesota for a narcotics transaction and were staying at a motel in Maplewood, Minnesota. Since arriving in Minnesota, the men had taken possession of the narcotics and arranged for another individual, who turned out to be an undercover law enforcement officer, to take possession of the narcotics for safekeeping. Later that same day, the undercover officer arrived at the motel and received from Garcia a duffel bag containing 19.46 pounds of methamphetamine that was divided into 20 small plastic containers, and six bricks of heroin that weighed a total of 13.11 pounds.

The following day, law enforcement officers executed a search warrant on the motel room and the vehicle Garcia and his co-conspirators drove from California. Officers arrested Garcia and found .277 grams of methamphetamine on his person.

Garcia faces up to life in prison. At sentencing, a federal district court judge will determine the sentence accounting for the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.

This case was the result of an investigation conducted by the Drug Enforcement Administration (DEA), the Minnesota Bureau of Criminal Apprehension, IRS-CI, Minneapolis-St. Paul Airport Police Department, Minnesota State Patrol and the Ramsey County Sherriff’s Office.

This case was tried by Assistant U.S. Attorneys LeeAnn K. Bell and Jordan L. Sing.

ST. PAUL, Minn. – A Mahnomen County man was sentenced today to 138 months in prison followed by five years of supervised release for distributing methamphetamine.

According to court documents, in December 2019, Augustus Quintrell Light, 40, was engaged in the distribution of controlled substances. On December 7, 2019, law enforcement executed a search warrant at a residence in Bemidji, Minnesota, where Light was located. Law enforcement recovered more than 50 grams of pure methamphetamine, a digital scale, and three rounds of .45 caliber ammunition. That same day, law enforcement searched Light’s primary residence in Naytahwaush, Minnesota. Within a locked safe inside the residence, officers found small quantities of controlled substances, $4,800 in cash, and three rounds of .45 caliber ammunition.

In March 2019, Light was pulled over in Bemidji for having an expired registration. After officers smelled marijuana from inside Light’s vehicle, they ordered him to step out. Light refused to comply and instead rolled up his windows, locked his doors, and drove away from the scene at a high rate of speed. Light led officers on a high-speed chase through Bemidji before he was stopped and arrested.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after Senior U.S. District Judge Paul A. Magnuson sentenced the defendant.

This case is the result of an investigation conducted by the Mahnomen County Attorney’s Office, the Beltrami County Attorney’s Office, the Paul Bunyan Task Force, the Bemidji Police Department, and the Beltrami County Sheriff’s Office.

Assistant U.S. Attorneys Alexander D. Chiquoine and Ruth Shnider prosecuted the case.

MINNEAPOLIS – A Duluth man pleaded guilty today to wire fraud and aggravated identity theft in connection to a COVID-19 relief fraud scheme, announced Acting U.S. Attorney W. Anders Folk.

According to his guilty plea, from April 2020 through August 2020, Jared John Fiege, 34, devised and executed a scheme to fraudulently obtain over $250,000 in COVID-19 relief through Unemployment Insurance (UI) and the Economic Injury Disaster Loan (EIDL) Program. As part of the scheme, Fiege submitted fraudulent applications for UI benefits and EIDL assistance by using stolen names, birth dates, and social security numbers of at least 20 individuals. In applying for EIDL assistance and advances, Fiege also invented fictional business entities, which he linked to the identities of real persons without their knowledge or consent. Fiege possessed multiple cell phones and registered numerous email addresses which he used to impersonate others. Fiege also impersonated others by using fraudulent passports as a means of identity verification. Fiege established false bank accounts and requested bank cards to be issued by mail to other people’s addresses, which he would then steal from their mailboxes along with other mail allowing him to withdraw significant amounts of cash from those accounts.

This case is the result of an investigation conducted by the United States Postal Inspection Service, the Small Business Administration Office of the Inspector General, the Minnesota Bureau of Criminal Apprehension, and the Duluth Police Department.

This case is being prosecuted by Assistant U.S. Attorney Lindsey E. Middlecamp.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

ST. PAUL, Minn. – A Saint Paul man was sentenced yesterday to 210 months in prison followed by three years of supervised release for illegally possessing a firearm.

According to court documents, on January 16, 2019, Saint Paul police officers responded to a shooting incident near Charles Avenue in St. Paul. Four gunshots were fired at a house, which was occupied by two adults and a two-year old child, penetrating the walls and windows. Officers were able to recover the four 9mm shell casings from the scene. The following day, law enforcement located a Buick Lucerne, registered to Curtis AJ Harrell, 30, that was at the scene of the shooting. Following a search of the vehicle and Harrell’s apartment, law enforcement recovered a loaded Glock 26 9mm firearm with a 17-round extended magazine in the center console of the vehicle and a 50-round 9mm extended drum magazine and live 9mm ammunition inside the apartment.

Investigators test fired the recovered Glock firearm and entered the resulting cartridge casing into the National Integrated Ballistic Information Network (NIBIN), which linked the firearm to the discharged casings recovered from the scene of the shooting. NIBIN also linked the firearm to discharged casings from three other incidents, including two occurring within the previous month. In his plea agreement, Harrell admitted to possessing the firearm that was used to shoot at the house.

Because he has multiple prior felony convictions, Harrell is prohibited under federal law from possessing firearms or ammunition at any time.

“This individual has a long history of carrying guns and committing violent felonies,” said Acting U.S. Attorney W. Anders Folk. “Thanks to the hard work of investigators and the use of NIBIN technology, this armed career criminal is off the streets.”

This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.

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

Assistant U.S. Attorney Nathan H. Nelson prosecuted the case.

ST. PAUL, Minn. – A federal inmate was sentenced today to an additional 18 months in prison followed by three years of supervised release for assaulting a federal prison guard.

According to court documents, on May 29, 2020, Charles Marquis Mitchell, 28, an inmate at the Federal Correctional Institution in Sandstone, Minnesota, obtained and ingested a synthetic drug and began shouting and acting erratically. Mitchell struck one inmate with a closed fist and shoved another inmate into a wall. Mitchell did not comply with the prison guards’ orders to lay on the ground and instead lunged towards them, striking one guard in the head and face with a closed fist.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant. The sentence was imposed to run consecutively to the sentence Mitchell is currently serving.

This case was the result of an investigation conducted by the FBI.

Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.

MINNEAPOLIS – W. Anders Folk, the Acting United States Attorney for the District of Minnesota, today announced that Assistant U.S. Attorney John F. Docherty has been appointed to serve as a United States Magistrate Judge. He will sit in St. Paul.

Mr. Docherty has served in the U.S. Attorney’s Office for the District of Minnesota as an Assistant U.S. Attorney since 2002. In his capacity, Mr. Docherty prosecuted a wide range of cases, focusing on international and domestic terrorism, civil rights cases, and cases involving the illegal export of sensitive U.S. technology. Mr. Docherty also served as the Office’s Anti-Terrorism Advisory Council (ATAC) Coordinator. Between 2006 and 2008, Mr. Docherty left the U.S. Attorney’s Office temporarily to work as a prosecutor at the United Nations’ International Criminal Tribunal for the Former Yugoslavia in the Hague, the Netherlands. There, he was a senior member of the prosecution team at the trial of General Dragomir Milosevic, the commander of the troops encircling Sarajevo during the last two years of the siege of that city. Milosevic was convicted, following a nine-month trial, of war crimes and crimes against humanity.

Prior to joining the Office, Mr. Docherty worked at the Antitrust Division of the Justice Department in Washington, D.C. before returning to Minnesota to join the Office of the Minnesota Attorney General, where, under Attorney General Hubert H. Humphrey III, he worked in the Antitrust Division and the Criminal Division. Mr. Docherty graduated with honors from the University of Minnesota Law School. He is a current member and past President of the Warren E. Burger American Inn of Court, and a member of the Minnesota Chapter of the Federal Bar Association.

Acting U.S. Attorney W. Anders Folk said: “I am proud that John Docherty has been selected to serve as a Magistrate Judge for the District of Minnesota. John is an excellent AUSA who handled some of our Office’s most difficult and complex cases. I know John will bring the same sense of justice and fairness to the bench that he brought to his work as a federal prosecutor. The people of the District of Minnesota will be well-served by his ongoing commitment to justice.”

MINNEAPOLIS – A White Earth man was sentenced yesterday to 205 months in prison followed by 10 years of supervised release for sexually abusing a minor.

According to court documents, between April 2018 and October 2018, within the exterior boundaries of the White Earth Indian Reservation, Evan James Oppegard, 33, knowingly engaged in sexual acts with a minor. Oppegard also admitted to sending sexually explicit communications to, and soliciting sexual acts with, the minor via Facebook.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after Chief U.S. District Judge John R. Tunheim sentenced the defendant.

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

Assistant U.S. Attorney Evan B. Gilead prosecuted the case.

ST. PAUL, Minn. – A West Virginia man was sentenced today to 70 months in prison followed by three years of supervised release for robbing a bank in Moorhead, Minnesota.

According to court documents, on May 1, 2019, Robert Vaughn Evans, 53, entered the Gate City Bank located inside a grocery store in Moorhead, Minnesota. Evans handed the bank teller a note that stated, “I have a gun.” Evans told the teller he did not want “bait” and that he was “not [expletive] around” while reaching for his back waistline, leading the teller to believe Evans possessed and was reaching for a gun. The teller retrieved $3,860 from the drawer and provided it to Evans, who put the money in his pocket and fled on foot. The robbery was captured from several angles on high-quality surveillance video.

According to court documents, Evans also admitted that on February 13, 2019, he robbed Key Bank in Niagara Falls, New York. Upon entering the bank, Evans presented a note to the bank teller which claimed he had a weapon and requested “no bait packs.” Evans was given $786 in cash before fleeing the bank.

As part of his sentence, Evans was ordered to pay $3,860 in restitution to Gate City Bank in Moorhead, Minnesota, and $786 to Key Bank in Niagara Falls, New York.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.

This case is the result of an investigation conducted by the FBI, the United States Marshals Service (USMS), the Moorhead Police Department, the New York State Police, the Pennsylvania State Police, the Washington County (Ohio) Sheriff’s Office, the Story City (Iowa) Police Department, the Holland (Massachusetts) Police Department, the Marietta (Ohio) Police Department, and the Morehead City (North Carolina) Police Department.

Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.

MINNEAPOLIS – A Waseca travel agency owner pleaded guilty today to a scheme to defraud travel agents out of more than $400,000 in commission payments, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, Matthew Harold Schumacher, 45, was owner and operator of Travel Troops, LLC, and Vacation Agent Nation, LLP, which were host travel agencies based in Waseca, Minnesota. Through his businesses, Schumacher purported to provide host travel services to independent travel agents throughout the United States in exchange for a monthly fee. Schumacher represented that his host travel business was a reliable and profitable means for his fee-paying travel agents to receive higher commission rates from travel industry suppliers, such as airlines, resorts, and cruise companies, than if the individual travel agents booked their customers’ travel arrangements. Pursuant to service agreements that Schumacher entered into with travel agents, Schumacher claimed to receive and collect on behalf of travel agents commission payments from travel industry suppliers and to distribute those commission payments to the various travel agents who booked the travel and earned the commissions.

According to court documents, Schumacher defrauded at least 36 travel agents by misappropriating for his own personal use and benefit at least approximately $484,000 in commission payments owed to them from travel suppliers. 

According to court documents, Schumacher tried to retain his travel agents’ money and to lull them into a false sense of security by, among other things, providing the travel agents with partial payments and by giving them materially false and fraudulent information. Schumacher misappropriated travel agents’ commission payments for his own personal use and benefit by, among other things, depositing at least approximately $160,000 to a personal account, funding of at least approximately $150,000 for his own travel expenses, including travel to Australia, the Caribbean, Mexico, Alaska, and multiple European countries, withdrawing of at least approximately $33,000 in cash, purchasing approximately $3,117 of electronics at Best Buy, as well as making payments for personal expenses, such as retail purchases, restaurant bills, car payments, credit card bills, StubHub ticket purchases, and loan payments.

This case is the result of an investigation conducted by the FBI.

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

 

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MINNEAPOLIS – Six individuals have been arrested and charged with conspiracy to distribute 1,000 kilograms or more of marijuana, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, from 2016 through June 2021, Douglas Robert Finch, Danny William Gehl, Jr., David William Gehl, Frank Joseph Kittleson, Patrick Thomas Maykoski, and Daniel Richard Thomas, conspired to distribute more than 1,000 kilograms of marijuana. The defendants and others were part of a drug trafficking operation (DTO) that shipped marijuana from California to Minnesota. Members of the DTO routinely sent shipping crates from a warehouse in St. Paul, Minnesota, to a warehouse in North Highlands, California. The DTO members would fly from Minnesota to California to purchase the marijuana, fill the crates with marijuana, and then load them on a delivery truck for shipment back to Minnesota. Once the shipment arrived in Minnesota, the DTO members unpacked the crates, repackaged the marijuana, and placed the marijuana in large garbage bags and boxes for distribution. Members of the DTO then transported the marijuana from the Minnesota warehouse to various locations for storage and packaging pending distribution to customers.

This case is the result of an investigation conducted by Homeland Security Investigations and IRS-CID.

Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.

A criminal 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 Maple Grove man was sentenced today to 84 months in prison followed by three years of supervised release for engaging in a $2.3 million mail fraud scheme.

According to court documents, from at least 2017 through November 2020, Isaiah Leslie Goodman, 34, defrauded at least 23 of his investor clients out of approximately $2,335,797.19. Goodman was a registered investment advisor and broker who owned Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C. Goodman also owned and operated MoneyVerbs, a business that claimed to provide customers with financial guidance through an internet-based app. Through Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C., Goodman represented that he would provide his clients with financial planning and investment advice, including purporting to place his clients’ savings and retirement funds into financial accounts that Goodman claimed were safe, secure, and profitable.

According to court documents, as part of his scheme to defraud, Goodman lied to prospective and existing clients about his use of their money, the security and profitability of the financial accounts he claimed to administer on their behalf, and the status and performance of their funds. During in-person sales pitches or through email messages and phone calls, Goodman provided clients with materially false and fraudulent information, including investment proposals and bogus online account information. Goodman also misrepresented to clients that their funds would be returned to them upon request, when, in fact, Goodman either kept all of the money or provided investors with refunded payments that were late, incomplete, or both, or that were refunds actually funded by other clients’ money.

According to court documents, instead of placing his clients’ money into safe and secure investment accounts, Goodman deposited client funds into bank accounts he controlled. Goodman misappropriated his clients’ funds for his own use and benefit by, among other things, purchasing and remodeling his home in Maple Grove, using funds for the purchase and construction of a $1.69 million home in Plymouth, buying a 2019 Ford Expedition and a 2020 Ford Explorer, funneling approximately $700,000 toward his other business, MoneyVerbs, and paying for personal expenditures, including a hot tub, a cruise, fitness club memberships, jewelry, and credit card payments.

As part of his sentence, Goodman will forfeit his equity in real estate, a vehicle, and other items of personal property.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.

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

Assistant U.S. Attorney Matthew S. Ebert prosecuted the case.

ST. PAUL, Minn. – A federal jury convicted an Albert Lea man on charges related to sextortion and child pornography, announced Acting U.S. Attorney W. Anders Folk.

Following a six-day trial before Judge Wilhelmina M. Wright, Travis Kyle Mayer, 32, was convicted on two counts of production and attempted production of child pornography, one count of distribution of child pornography, one count of possession of child pornography, one count of receipt of child pornography, one count of coercion and enticement of a minor, one count of committing a felony offense involving a minor while required to register as a sex offender, and one count obstruction of justice.

According to the evidence presented at trial, in 2017, Mayer downloaded and received child pornography from a Russian-based child pornography distribution website. In 2018, Mayer sexually exploited a 15-year-old girl, through persuasion and coercion, into producing child pornography, which he then possessed and distributed. This entire time, Mayer was required to register as a sex offender. Between June 20, 2019, and October 11, 2019, Mayer attempted to obstruct the administration of justice by requesting a witness to testify falsely regarding the child sexual exploitation investigation.

Mayer faces up to life in prison. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.

This case was the result of an investigation conducted by the FBI and the Albert Lea Police Department.

This case was tried by Assistant U.S. Attorneys Alexander D. Chiquoine and Joseph H. Thompson.

MINNEAPOLIS – A California man was sentenced today to 60 months in prison followed by three years of supervised release for conspiring to distribute methamphetamine.

According to court documents, in December 2019, Francisco Calderon-Panduro, 33, and others participated in a large-scale methamphetamine distribution conspiracy. On December 17, 2019, law enforcement arranged with Calderon-Panduro’s co-conspirators to conduct a controlled purchase of three pounds of methamphetamine. When Calderon-Panduro arrived at the designated location with the methamphetamine in his trunk, the undercover law enforcement officers arrested him. Calderon-Panduro admitted to law enforcement that he had additional methamphetamine at his home. During a subsequent search of Calderon-Panduro’s residence, law enforcement seized an additional 47 pounds of methamphetamine stored in various locations within the home.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.

This case was the result of an investigation conducted by the Drug Enforcement Administration and the Anoka-Hennepin Narcotics and Violent Offenders Task Force.

This case was prosecuted by Assistant U.S. Attorney Allen A. Slaughter.

MINNEAPOLIS – A federal jury convicted a St. Paul man for drug possession with intent to distribute after being arrested with six kilograms of cocaine in his vehicle, announced Acting U.S. Attorney W. Anders Folk.

Following a four-day trial before Judge Ann D. Montgomery, John Sheldon Pickens, Jr. was convicted on one count of possession with intent to distribute cocaine.

According to the evidence presented at trial, during the early morning hours of November 1, 2019, officers with the St. Paul Police Department initiated a traffic stop of Pickens’s vehicle. Pickens initially pulled his vehicle over but then accelerated away and led police on a high-speed chase for several miles through the city of St. Paul. Officers were ultimately able to stop him on the Lafayette Bridge and take him into custody. Officers searched the vehicle and found six packages of cocaine that had a combined weight of approximately six kilograms.

Pickens faces a 10-year mandatory minimum prison sentence. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.

This case was the result of an investigation conducted by the Homeland Security Investigations, the Saint Paul Police Department, and the Minnesota State Patrol.

This case was tried by Assistant U.S. Attorneys Amber M. Brennan and Joseph S. Teirab.

ST. PAUL, Minn. – A Rochester man was sentenced yesterday to 132 months in prison followed by five years of supervised release for conspiracy to distribute methamphetamine.

According to court documents, from May 2019 through June 2019, Jason Edward Hoffman, 34, was part of a conspiracy to distribute methamphetamine. As part of his role in the conspiracy, Hoffman served as a sub-distributor and provided distribution logistics for methamphetamine, that was supplied to him by co-conspirator John Willis Netherton. Hoffman also collected funds from the sale of methamphetamine, which he provided in part to Netherton.

Jason Edward Hoffman pleaded guilty on August 25, 2020, to one count of conspiracy to distribute methamphetamine. Several co-conspirators have previously been sentenced for their roles in the conspiracy including: John Willis Netherton, who was sentenced to 260 months imprisonment followed by eight years of supervised release; Jacob Paul Williams was sentenced to 180 months imprisonment and five years of supervised release; Andrew Robert Berndt was sentenced to 102 months imprisonment and five years of supervised release; and Miguel Angel Cuevas Zamora who was sentenced to 120 years imprisonment and two years of supervised release.

Co-conspirators Joshua Alexander Sazo, Nicholas John Hanson, Deja Lee Benton, and Kayleigh Rea Todd have all pleaded guilty and are pending sentencing.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.

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, the Olmsted County Sheriff’s Office, the South Central Drug Investigation Unit, and the Minnesota State Patrol.

Assistant U.S. Attorney Allen A. Slaughter, Jr. prosecuted the case.

MINNEAPOLIS – A Red Lake man has been indicted by a federal grand jury on charges related to a sexual assault occurring on the Red Lake Indian Reservation.

According to court documents, between September 26 and 27, 2020, Tony Lee Lussier, 38, of Red Lake, Minnesota, assaulted a victim with a knife. The indictment also alleges that Lussier engaged in a sexual act with the victim who at the time was physically incapable of declining participation in the act.

Lussier is charged with one count of assault with a dangerous weapon and one count of sexual abuse of an incapable victim. Lussier made his initial appearance today in U.S. District Court before Magistrate Judge Tony N. Leung. Acting U.S. Attorney W. Anders Folk of the District of Minnesota made the announcement.

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

Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.

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

ST. PAUL, Minn. – A Canadian man pleaded guilty today to possessing a firearm as an alien illegally or unlawfully in the United States, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on January 10, 2021, Dayne Adrian Sitladeen, 29, and his co-defendant were stopped by a Minnesota State Patrol Trooper near Fergus Falls, Minnesota. The defendants were traveling between 95-100 miles per hour in a Chevrolet Silverado pickup truck with Texas license plates. When the Trooper approached the vehicle, Muzamil Aden Addow, the driver, provided an Ontario, Canada driver’s license with a false name.

According to court documents, after detecting the odor of marijuana in the vehicle and receiving suspicious and inconsistent statements from Sitladeen, the Trooper searched the vehicle. As a result of the search, law enforcement officers recovered a total of 67 firearms and numerous pistol magazines, including 15 high capacity pistol magazines, from four bags in the truck—one pistol magazine was partially loaded with live ammunition rounds. Law enforcement later discovered a provisional federal arrest warrant from the United States Marshals Service for Sitladeen, which was based on a 2019 Canadian arrest warrant for first degree homicide, fentanyl distribution, and possession of proceeds of crime.

“Whether it’s dozens of illegal guns in greater Minnesota or a straw purchasing ring operating in the Twin Cities, federal law enforcement is committed to reducing violent crime and stemming the flow of illegal firearms in our communities,” said Acting U.S. Attorney W. Anders Folk.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minnesota State Patrol.

This case is being prosecuted by Assistant U.S. Attorney Samantha Bates.

MINNEAPOLIS – A recently unsealed indictment charges three individuals with securities fraud for running an illegal pump-and-dump stock manipulation scheme by hijacking dormant public shell companies. The 15-count indictment charges all three defendants with conspiracy to commit securities fraud, securities fraud and wire fraud.

According to court documents, Mark Allen Miller, 43, of Breezy Point, Minnesota, Christopher James Rajkaran, 35, of Queens, New York, and Guyana, and Saeid Jaberian, 59, of Hopkins, Minnesota, devised and carried out a scheme to surreptitiously hijack and assume control over dormant public shell companies. The defendants used their control over the companies to fraudulently manipulate and pump up the price of the companies' stock so that they could profit from the sale of stock to unwitting investors.

According to court documents, the defendants acquired large amounts of stock in dormant public shell companies that traded over-the-counter at low prices, often less than $0.01 per share. The defendants then assumed control over the shell companies by creating fake and filing fake resignation letters and board resolutions purporting to announce the resignation of the existing management team and the appointment of one or more conspirators as new officers and directors of the companies. The conspirators used their control over the hijacked shell companies to issue fraudulent press releases and filings designed to fraudulently inflate and “pump up” the price of the hijacked companies’ stock. The defendants then sold or “dumped” their stock at the fraudulently inflated prices.

Rajkaran, who was arrested on June 18, 2021, in the Eastern District of New York, made his initial appearance U.S. District Court before Magistrate Judge John Cho. Miller and Jaberian will make their initial appearances in U.S. District Court before Magistrate Judge Hildy Bowbeer in St. Paul, Minnesota. Acting U.S. Attorney W. Anders Folk of the District of Minnesota made the announcement.

This case is the result of an investigation conducted by the U.S. Postal Inspection Service and the FBI. The U.S. Attorney’s Office would also like to thank the Securities and Exchange Commission for its assistance on this matter. 

Assistant U.S. Attorneys Joseph H. Thompson and Miranda E. Dugi are prosecuting the case.

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

ST. PAUL, Minn. – A federal jury convicted a Ponsford man on charges related to a violent assault on the White Earth Indian Reservation, announced Acting U.S. Attorney W. Anders Folk.

Following a four-day trial, Wesley Robert Warren, 22, was convicted on two of four counts, including one count of assault with a dangerous weapon and one count of assault resulting in serious bodily injury.

According to the evidence presented at trial, during the early morning hours of June 3, 2020, Warren and another man got into an argument with the victim. The argument escalated into a physical altercation and Warren and the other man knocked out the victim. Once the fight was over and the victim was laying face down on the ground, Warren continued the assault by picking up a 42-pound cinderblock and dropping it on the back of the victim’s head. As a result of the assault the victim was hospitalized for several weeks due to brain trauma and was later transferred to a long-term care facility.

Warren faces up to 10 years in prison, a maximum fine of $250,000 and up to three years of supervised release on each count of conviction. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.

This case was the result of an investigation conducted by the Becker County Sheriff’s Office, the White Earth Police Department, and the FBI Headwaters Safe Trails Task Force.

This case was tried by Assistant U.S. Attorney Deidre Y. Aanstad and Special Assistant U.S. Attorney Caleb J. Dogeagle.

MINNEAPOLIS – A Moorhead man, Phillip Jones, Jr., 33, was arrested and charged with firearms violations after a juvenile was killed by a bullet fired from a gun that Jones allegedly possessed, announced Acting U.S. Attorney W. Anders Folk.

According to court documents, on March 21, 2021, officers of the Moorhead Police Department were dispatched to a residence in Moorhead, Minnesota, for a report of a juvenile male with a gunshot wound. After attempting life saving measures, paramedics pronounced the juvenile male, age 6, deceased. Investigators learned that three other juveniles were present in the residence at the time of the incident. According to investigators, Jones had been living at the residence but was not present at the time of the incident, nor were any other adults. Investigators learned that a firearm, a Smith and Wesson SW99, .40 caliber pistol, was located in a box on top of the kitchen cabinets. The firearm was still loaded and a .40 caliber Smith and Wesson spent casing was found in the kitchen trashcan. The investigation later revealed that DNA collected from the firearm matched the DNA profile of Jones. Because Jones has a prior felony conviction in Hennepin County, he is prohibited under federal law from purchasing or possessing firearms or ammunition at any time.

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

Assistant U.S. Attorney Jeffrey S. Paulsen is prosecuting the case.

A criminal 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 was sentenced today to 72 months in prison followed by three years of supervised release for arson at a St. Paul car rental agency.

According to court documents, on May 28, 2020, an Enterprise Rent-A-Car building located in St. Paul, Minnesota, was completely destroyed due to arson. Surveillance video footage from cameras located inside and outside of the business showed Matthew Scott White, 31, entering the building and starting a fire in the back office. White fueled the fire by throwing papers and other flammable items onto the flames. As White exited the building, he told bystanders that the building was “going up” meaning, it was going to burn.

Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.

This case was the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, and the Minnesota State Fire Marshal Division.

This case was prosecuted by Assistant U.S. Attorney Bradley M. Endicott.

ST. PAUL, Minn. – Thirty-six defendants have been sentenced in federal court for their roles in operating a massive international sex trafficking organization that was responsible for coercing hundreds of Thai women to engage in commercial sex acts across the United States.

Matthew Mintz, 29, of Chicago, Illinois, pleaded guilty on April 23, 2018, to one count of conspiracy to commit harboring and one count of conspiracy to engage in money laundering. Mintz was sentenced yesterday by Senior Judge Donovan Frank to one year and one day in prison, three years of supervised release, $100,000 in restitution, and 100 hours of community service. Sumalee Intarathong, 60, is the final defendant that was charged as part of the sex trafficking conspiracy. On February 17, 2021, Intarathong was extradited to the United States from Belgium on a 10-count superseding indictment alleging conspiracy, human trafficking violations, and visa fraud.

According to court documents and evidence presented at trial, this criminal organization compelled hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, Seattle and Austin. The trafficking victims were often from impoverished backgrounds and spoke little or no English. They were coerced to participate in the criminal scheme through misleading promises of a better life in the United States and the ability to provide money to their families in Thailand.

Once in the United States, the victims were sent to houses of prostitution where they were forced to have sex with strangers – every day – for up to 12 hours a day, at times having sex with 10 men a day. The victims were isolated from the outside world. They were not allowed to leave the houses of prostitution unless accompanied by a member of the criminal organization. The victims moved around the United States between houses of prostitution in multiple cities. They and their families in Thailand were threatened.

The organization also engaged in widespread visa fraud to facilitate the international transportation of the victims. Traffickers assisted the victims in obtaining fraudulent visas and travel documents by funding false bank accounts, creating fictitious backgrounds and occupations, and instructing the victims to enter into fraudulent marriages to increase the likelihood that their visa applications would be approved. Traffickers also coached the victims as to what to say during their visa interviews. While working to obtain visa documents, traffickers gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who sought to flee the organization in the United States.

The organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. The organization used “funnel accounts” to launder and route cash from cities across the United States to the money launderers in Los Angeles. To date, investigators have been able to recover $1.5 million in cash and $15 million in money judgments secured through plea agreements. During the extensive investigation, law enforcement traced tens of millions of dollars to the organization. Indeed, at trial, there was testimony that more than $40 million was sent to Thailand by one money launderer alone.

“A total of 36 individuals who participated in this horrific commercial sex trafficking operation have now been held to account for their exploitative treatment of fellow human beings,” said Acting U.S. Attorney W. Anders Folk. “Sex trafficking is a reprehensible crime and combatting it remains a priority for this office and for our law enforcement partners. Today’s penultimate sentencing not only signals the end of a years-long investigation and prosecution, but it demonstrates the dogged pursuit that we have brought to this case since day one.”

“HSI, through collaborative efforts with numerous law enforcement partners, unraveled this international ring of criminals that brutally exploited women for their own personal gain,” said acting Special Agent in Charge Jamie Holt, of HSI St. Paul. “Human trafficking is a deplorable crime, and this sentencing, the last of 36 defendants that have resulted in nearly $23 million in restitution ordered by the court, demonstrates a measure of justice for the victims and that HSI will continue to ensure those responsible will be brought to justice.”

“Money laundering is tax evasion in progress. The proceeds are fuel for criminals to conduct their illegal affairs and are used to manipulate and erode our financial systems,” said Special Agent In Charge Kathy Enstrom, IRS Criminal Investigation, Chicago Field Office. “We are committed to deciphering the complex international financial transactions and money laundering schemes that are the engine for human trafficking. We will find you and we will bring you to justice, just as we did with Matthew Mintz,” said Enstrom.

This case was the result of an investigation conducted by Homeland Security Investigations (HSI), the Criminal Investigation Division of the IRS (IRS-CI), the Department of Justice’s Criminal Division’s Money Laundering and Asset Recovery Section, the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, the St. Paul Police Department, the Bureau of Criminal Apprehension’s Minnesota Human Trafficking Investigators Task Force, the Anoka County Sheriff’s Office, the Cook County (Illinois) Sheriff’s Office, the State Department Diplomatic Security Service, and the International Organized Crime Intelligence and Operations Center (IOC-2). Acting U.S. Attorney Folk also thanks the Thai Community Development Center for their support and advocacy on behalf of the victims of this sex trafficking organization.

This case was prosecuted by Assistant U.S. Attorneys Melinda A. Williams and Laura Provinzino, with assistance from HSI Special Agent Tonya Price, IRS-CI Special Agent John Tschida, Senior Investigator Steven Baker of the Justice Department’s Criminal Division’s Money Laundering and Asset Recovery Section, and the Justice Department’s Civil Rights Division’s Human Trafficking Prosecution Unit.

ST. PAUL, Minn. – A Sturgeon Lake, Minnesota, man and an Aitkin, Minnesota, woman were sentenced in federal court today for producing and attempting to produce child pornography.

Matthew James Gunderson, 31, and Amanda May Walsh, 39, were sentenced by Judge Patrick J. Schiltz to 360 months and 228 months, respectively. The court also sentenced Gunderson and Walsh to 10 years each of supervised release following incarceration. They will be required to register as sex offenders upon their release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout their lives.

According to court documents, on January 22, 2019, and at other times, Walsh engaged in the sexual abuse of a minor for the purpose of producing videos and photographs of the abuse. On January 24 and January 26, 2019, and at other times, Gunderson engaged in the sexual abuse of minors for the purpose of producing videos and photographs of the abuse.

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

This case was the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Aitkin County Sheriff’s Office.

This case was prosecuted by Assistant U.S. Attorney Manda M. Sertich.