District of Minnesota
Press releases recorded for this federal judicial district.
Moldovan National Sentenced to 41 Months in Prison for Faking His Death for $2 Million Insurance PayoutRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of IGOR VOROTINOV, 55, to 41 months in prison for faking his death in order to collect a $2 million life insurance payment. VOROTINOV, who pleaded guilty on May 3, 2019, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in March 2010, IGOR VOROTINOV obtained a $2 million life insurance policy on his own life from Mutual of Omaha Insurance Company (Mutual of Omaha), and designated his wife, IRINA VOROTINOV, as the primary beneficiary.
According to the defendant’s guilty plea and documents filed in court, on October 1, 2011, the Moldovan police discovered the corpse of an adult male by the side of a road near the Moldovan village of Cojusna. Based upon the dead body and the defendant’s identification documents in its clothing, the Moldovan police and a Moldovan morgue official purported to determine that Igor Vorotinov had died of a heart attack on October 1, 2011. After his purported death, VOROTINOV began using the name “Nikoly Patoka” and lived in Transnistria, a small Russian-controlled region of Moldova, from approximately 2012 until approximately November 2018.
On November 7, 2011, IRINA VOROTINOV submitted a claim for death benefits against the Mutual of Omaha life insurance policy, claiming that VOROTINOV had died in the Republic of Moldova on October 1, 2011. VOROTINOV was aware of his former wife’s filing of the fraudulent death claim, and therefore continued living and doing business as “Nikoly Patoka.” On March 23, 2012, Mutual of Omaha mailed a check payable to IRINA VOROTINOV in the amount of $2,048,414.09 to her home in Maple Grove, Minnesota.
According to documents filed in court, IRINA recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at U.S. Bank in the name of her son, ALKON VOROTINOV. Between March 29, 2012 and January 2015, more than $1.5 million of the life insurance proceeds were transferred to accounts located in Switzerland and Moldova.
According to documents filed in court, on November 27, 2013, ALKON VOROTINOV was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of IGOR VOROTINOV taken on April 19, 2013 and on May 12, 2013, in which IGOR is alive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs handled the extradition in this matter.
Assistant U.S. Attorneys David J. MacLaughlin and Matthew Ebert prosecuted the case.
Defendant Information:
IGOR VOROTINOV, 55
No known address
Convicted:
- Mail Fraud, 1 count
Sentenced:
- 41 months in prison
- Three years of supervised release
- $2,048,414.09 in restitution to Mutual of Omaha
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Bookkeeper for Anoka Flooring Company Sentenced to 46 Months in Prison for $630,000 Embezzlement SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced that SHARI ANN NATYSIN, a/k/a Shari Ann Johnson, 33, was sentenced to 46 months in prison and ordered to pay full restitution for embezzling more than $630,000 from her former employer. NATYSIN, who pleaded guilty on February 28, 2019, to wire fraud, tax evasion, and making and subscribing a false tax return, was sentenced earlier today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to admissions made as part of her guilty plea and documents filed in court, NATYSIN was employed as the bookkeeper and office manager for a privately owned industrial concrete flooring business located in Anoka, Minnesota. Between January 2015 and December 2017, NATYSIN used her position and access to employee payroll data to defraud the company out of more than $630,000 and to defraud the Minnesota Department of Employment and Economic Development (“MNDEED”). As part of the scheme, NATYSIN manipulated the company’s payroll data in order to transfer more than $630,000 in company funds to her own personal bank accounts through more than 100 separate fraudulent transactions. NATYSIN used the funds to pay for personal expenses, including approximately $28,000 in restitution payments to Sherburne County District Court, a $10,000 payment to her mother, Carnival cruise tickets, and tickets to concerts and sporting events.
According to admissions made as part of her guilty plea and documents filed in court, in September 2017, the company discovered NATYSIN’s fraud and terminated her employment. From the time she was fired until December 2017, NATYSIN made fraudulent unemployment claims to MNDEED by making false statements about the reason for her termination. When the company filed an appeal of NATYSIN’s receipt of unemployment benefits, NATYSIN used the company’s login information to access their MNDEED account to withdraw the appeal. As a result of NATYSIN’s fraudulent claims, MNDEED issued approximately $7,500 in unemployment benefits to which NATYSIN was not entitled. Additionally, NATYSIN admitting to filing and attempting to file false tax returns for tax years 2015 and 2016, in an attempt to receive tax refunds and defeat more than $100,000 in federal income tax.
This case was the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Kimberly A. Svendsen and Jordan L. Sing prosecuted the case.
Defendant Information:
SHARI ANN NATYSIN, 33
Elk River, Minn.
Convicted:
- Wire fraud, 9 counts
- Tax evasion, 2 counts
- Making and subscribing a false tax return, 1 count
Sentenced:
- 46 months in prison
- Three years of supervised release
- $668,551.25 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Owners of Minneapolis Adult Day Care Charged with Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment against FAYSAL SAYID, 40, and MUHUMED ALI, 36, charging them with multiple counts of income tax evasion and with conspiracy to defraud the United States. SAYID and ALI are currently scheduled to make their initial appearances on August 9, 2019, before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.
According to the indictment, SAYID and ALI co-owned and operated Meisa Group, LLC, which provided adult day care services to individuals enrolled in the Minnesota Medicaid program. Between 2012 and 2014, SAYID and ALI each received more than $1 million from Meisa’s operating accounts and used much of the funds to pay for their own living expenses, including clothing, travel, entertainment, and automobiles. According to the indictment, SAYID and ALI created falsified financial records including profit and loss statements, fabricated invoices, and failed to report or pay individual income taxes on the income.
This case is the result of an investigation conducted by the FBI, the Criminal Investigation Division of the IRS, and the Civil division of the IRS.
Assistant U.S. Attorney John Kokkinen is prosecuting the case.
Defendant Information:
FAYSAL SAYID, 40
Minneapolis, Minn.
Charges:
- Conspiracy to defraud the united states, 1 count
- Income tax evasion, 3 counts
MUHUMED ALI, 36
Minneapolis, Minn.
Charges:
- Conspiracy to defraud the united states, 1 count
- Income tax evasion, 2 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Minnesota Farmer Sentenced to Prison for Converting USDA Farm Loan Collateral for Personal UseRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DANIEL L. KLUENDER, 41, to a year and a day in prison and ordered to pay $880,143.01, for illegally selling hundreds of thousands of dollars in property that was pledged as collateral for a USDA-backed farm loan. KLUENDER, who pleaded guilty on March 7, 2019, was sentenced yesterday before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, in May 2013, KLUENDER took out a loan in the amount of $1,302,000 from Farmers State Bank, which operates in the vicinity of Albert Lea, Minnesota. This loan was guaranteed by the Farm Service Agency (“FSA”) of the U.S. Department of Agriculture (“USDA”). Under the terms of the loan, KLUENDER was required to pledge specific items as collateral, including, among other things, crops, livestock, farm equipment, and vehicles. KLUENDER agreed that any and all proceeds from the sale of these items were obligated to be applied to his loan payments. Between 2013 and 2017, in violation of the terms of the loan, KLUENDER began selling pledged collateral without authorization or permission from the FSA. Moreover, KLUENDER retained the proceeds and diverted the funds for his personal use. In the course of committing this offense, KLUENDER also filed for Chapter 7 bankruptcy during which he testified falsely about his ownership of pledged property.
According to documents filed in court, in July 2015, Farmers State Bank began efforts to repossess collateral from KLUENDER to collect on the loan. In response to the repossession efforts, KLUENDER resorted to physical violence against a bank employee, engaged in vandalism of pledged collateral, and continued to illegally convert pledged collateral.
This case was the result of an investigation conducted by the United States Department of Agriculture-Office of Inspector General.
This case was prosecuted by Assistant U.S. Attorney Katharine T. Buzicky and Matthew S. Ebert.
Defendant Information:
DANIEL L. KLUENDER, 41
Walters, Minn.
Convicted:
- Conversion of property mortgaged or pledged to farm credit agencies, 1 count
Sentenced:
- One year and one day in prison
- Two years of supervised release
- $314,003.18 in restitution to Farmers State Bank
- $566,139.83 in restitution to the U.S. Department of Agriculture’s Farm Service Agency
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Finds Minnesota Business Owner Guilty of Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of RANDAL SCOT BRINKMAN, 60, on six counts of tax evasion. BRINKMAN, who was indicted on September 24, 2018, was found guilty following a four-day trial before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
As proven at trial, BRINKMAN owned and operated a Roseville-based construction company. From 2002 through 2018, BRINKMAN took steps to hide his income and to actively evade the assessment of taxes, including using sham businesses, closing his personal bank accounts, using money orders and cash to pay for daily expenses, and creating a fake religious organization in order to hide his income and assets. Following a 2007 IRS audit, BRINKMAN filed personal income tax returns for the calendar years 2002 through 2007, admitting that he owed more than $145,000 in federal income taxes for those years. Nevertheless, despite filing the returns, BRINKMAN didn’t pay any of the taxes he admitted he owed to the IRS. BRINKMAN also failed to file tax returns or pay any of his federal incomes taxes from 2012 through 2018.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Revenue.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Alexander D. Chiquione.
Defendant Information:
RANDAL SCOT BRINKMAN, 60
Medina, Minn.
Convicted:
- Tax evasion, 6 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Registered Sex Offender Enters Guilty Plea in “Sextortion” CaseRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 20, to one count of production of child pornography and one count of extortion. DELING entered his guilty plea today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
“Young people are faced with online threats and abuse unlike ever before. Sadly, law enforcement is seeing an increase in these types of cases– the sly tactics, the coercion, the threats, are all tools employed by online predators such as Mr. Deling,” said U.S. Attorney Erica MacDonald. “Our stance is aggressive when it comes to the investigation and prosecution of these cases and we will remain proactive in our efforts to build awareness around the issue of sextortion.”
According to the defendant’s guilty plea and documents filed in court, between October 2017 and August 2, 2018, DELING used multiple social media and chat platforms, including Snapchat, Facebook, Instagram, Kik, and Skype, as well as text messages to carry out his sextortion scheme. Sextortion is the act of extorting sexually explicit images and videos from a victim by threatening to reveal a victim’s sexually explicit chats, images, or videos, or through threats of harm to the victim or the victim’s loved ones. In the course of his scheme, DELING sextorted more than 40 minor girls whom he knew to be or believed were between 11 and 17 years old.
According to the defendant’s guilty plea and documents filed in court, DELING, using multiple usernames and accounts, employed several different techniques to attempt to and to obtain child pornography from minor girls. One technique DELING used was offering compliments and expressions of affection to the minor girls to persuade them into creating sexually explicit images of themselves. In many instances, DELING threatened to and actually did disseminate sexually explicit images of the girls to their friends and family if the girls refused to provide him with sexually explicit images. In other instances, DELING threatened to send his associates to rape, kidnap, injure, or kill the girls or their loved ones. To underscore his threats, DELING sent screenshots of maps of the girls’ residences, family members’ contact information, and other identifying information to the girls, as well as posting the information online. In at least one instance, DELING obtained sexually explicit images through a friend of one of the girls.
This case is the result of an investigation conducted by the FBI, in coordination with multiple state and local law enforcement agencies inside and outside of Minnesota.
This case is being prosecuted by Assistant U.S. Attorney Miranda E Dugi.
Defendant Information:
DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 20
Fairmont, Minn.
Convicted:
- Production of child pornography, 1 count
- Interstate communication with intent to extort, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Michigan Man Sentenced to 45 Months in Prison for Stalking Ex-GirlfriendRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of SHAWN KELLY THOMASON, 39, to 45 months in prison for engaging in repeated interstate stalking. THOMASON, who pleaded guilty on March 20, 2019, was sentenced before Judge Eric C. Tostrud in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, THOMASON devised a plan to digitally stalk, harm, and abduct his ex-girlfriend. THOMASON handwrote lists that he titled “Tactics” and “Preparations,” which included items such as gloves, cable ties, cuffs, stun guns, pistol, and knife. At least four times between October 30 and December 7, 2018, THOMASON drove from his home in Hazel Park, Michigan, to the home where the victim was living in Mankato, Minnesota. During each of these visits THOMASON stalked the victim. THOMASON attached GPS trackers to the victim’s vehicle, recorded her daily travel to and from her home, and surveilled her at her place of employment. THOMASON’s conduct was discovered on December 6, 2018, when he made contact with the victim in Mankato and was arrested the following day.
This case was the result of an investigation conducted by the FBI, the Mankato Department of Public Safety, and the St. Peter Police Department.
Assistant U.S. Attorneys Emily Polachek and Katharine T. Buzicky prosecuted the case.
Defendant Information:
SHAWN KELLY THOMASON, 39
Hazel Park, Mich.
Convicted:
- Interstate stalking, 1 count
Sentenced:
- 45 months in prison
- Three years of supervised release
- Restitution amount to be determined
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Twin Cities Coin Dealer Sentenced to 30 Months in Prison for Counterfeit Coin Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BARRY RON SKOG, 68, to 30 months in prison for perpetrating a counterfeit coin fraud scheme. SKOG, who pleaded guilty on February 21, 2019, was sentenced earlier today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
“The Minnesota Department of Commerce is proud of our role in uncovering this counterfeit coin fraud scheme,” said Matt Vatter, Minnesota Department of Commerce Assistant Commissioner of Enforcement. “Every day, our investigators in the Commerce Fraud Bureau are working to protect Minnesotans against these types of schemes and fraudulent activities and ensure a business climate where legitimate businesses can serve the needs of our citizens.”
According to the defendant’s guilty plea and documents filed in court, SKOG owned and operated a business which engaged in advertising and selling numismatic coins. Through his business, SKOG posted advertisements for coins in a publication called Numismatic News. When potential buyers responded to the ads, SKOG would mail them lists of available coins for purchase, many of which were counterfeit. In his communications with the victims, SKOG would often represent himself as an employee named “Ron Peterson,” when, in fact, there were no other owners or employees of the company other than SKOG. In total, SKOG stole more than $57,000 from his identified victims. SKOG also intended to create additional loss by advertising for sale 275 additional counterfeit coins at an advertised sale value of approximately $235,000.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Burnsville Police Department.
Based on the evidence obtained in this case, authorities believe there may be additional victims who have not yet been identified. Anyone with information about this matter is encouraged to call the Minnesota Commerce Fraud Bureau at 651-539-1617. Callers may remain anonymous.
Assistant U.S. Attorney Manda M. Sertich prosecuted the case.
Defendant Information:
BARRY RON SKOG, 68
Burnsville, Minn.
Convicted:
- Sale of counterfeit coins, 1 count
- Mail fraud, 1 count
Sentenced:
- 30 months in prison
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Florida Attorney Sentenced to 60 Months in Prison for Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
A Florida attorney was sentenced to 60 months in prison followed by two years of supervised release for his role in a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Erica H. MacDonald of the District of Minnesota.
John L. Steele, 48, who pleaded guilty on March 6, 2017, was sentenced today before U.S. District Judge Joan N. Ericksen of the District of Minnesota who also ordered Steele to pay restitution in the amount of $1,541,527.37.
According to his guilty plea and documents filed in court, between 2011 and 2014, Steele and his co-defendant Paul R. Hansmeier, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who allegedly downloaded pornographic movies from file-sharing websites. Steele admitted in court during his plea that he and Hansmeier created a series of sham entities, which they surreptitiously controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. Steele and Hansmeier then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, the defendants gained authority from the courts to subpoena internet service providers for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
According to the indictment, the plea agreement and other court documents, in November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, Steele and Hansmeier created and used Prenda Law, among other law firms, to pursue their fraudulent lawsuits. Steele acknowledged at his plea hearing that he and Hansmeier exerted de facto control over Prenda Law throughout the scheme, but recruited a now-deceased Illinois attorney to pretend to own and control the law firm.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, the defendants recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants.” These ruse defendants agreed to be sued and permit Steele and Hansmeier to conduct early discovery against their supposed “co-conspirators” in exchange for Steele and Hansmeier waiving their settlement fees. During his plea hearing, Steele admitted that the allegations of “hacking” in these complaints were made up.
In total, Steele and Hansmeier obtained approximately $3 million from the fraudulent copyright lawsuits.
This case was the result of an investigation conducted by the FBI and IRS-Criminal Investigations.
Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Benjamin F. Langner and David J. MacLaughlin of the District of Minnesota prosecuted the case.
Florida Attorney Sentenced to 60 Months in Prison for Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JOHN L. STEELE, 48, to 60 months in prison for his role in a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. STEELE, who pleaded guilty on March 6, 2017, was sentenced earlier today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, between 2011 and 2014, STEELE and his co-defendant PAUL R. HANSMEIER, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who allegedly downloaded pornographic movies from file-sharing websites. STEELE admitted in court during his plea that he and HANSMEIER created a series of sham entities, which they surreptitiously controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. STEELE and HANSMEIER then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, the defendants gained authority from the courts to subpoena internet service providers (“ISPs”) for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
According to the indictment, the plea agreement, and other court documents, in November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, STEELE and HANSMEIER created and used Prenda Law, among other law firms, to pursue their fraudulent lawsuits. STEELE acknowledged at his plea hearing that he and HANSMEIER exerted de facto control over Prenda Law throughout the scheme, but recruited a now-deceased Illinois attorney to pretend to own and control the law firm.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, the defendants recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants.” These ruse defendants agreed to be sued and permit STEELE and HANSMEIER to conduct early discovery against their supposed “co-conspirators” in exchange for STEELE and HANSMEIER waiving their settlement fees. During his plea hearing, STEELE admitted that the allegations of “hacking” in these complaints were made up.
In total, STEELE and HANSMEIER obtained approximately $3 million from the fraudulent copyright lawsuits.
This case was the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Benjamin F. Langner and David J. MacLaughlin of the District of Minnesota, and Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section, prosecuted the case.
Defendant Information:
JOHN L. STEELE, 48
Unknown, Fla.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 60 months in prison
- Two years of supervised release
- Restitution in the amount of $1,541,527.37
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Burnsville Man Sentenced to 324 Months in Prison for Violent KidnappingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DONTAY LAVARICE REESE, 38, to 324 months in prison for a violent kidnapping. REESE, who pleaded guilty on February 13, 2019, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. During the sentencing hearing Judge Schiltz commented that the defendant is extremely dangerous and the public needs to be protected from him. Judge Schiltz further remarked that Mr. Reese is an extraordinarily cruel and selfish person, with one of worst records [the Judge] had ever seen among federal detainees at the Sherburne County Jail.
A second indictment against REESE was unsealed on June 26, 2019, charging him with assaulting a federal law enforcement officer while in custody on the kidnapping charge at the Sherburne County Jail. [1]
“The strength and resilience of this victim has helped ensure the defendant is held accountable for his heinous crimes, and that our community is safe from a violent offender with a long criminal record,” said United States Attorney Erica H. MacDonald. “We are grateful for her courage. We are also thankful to the family who witnessed the defendant’s brutality and called the police. ”
"Mr. Reese will be spending a significant amount of time in prison thanks in large measure to the remarkable courage of the victim in this case," said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI. "Today, we thank our law enforcement partners for their excellent work and focus our support on the victim for showing immeasurable strength throughout this most difficult time."
According to the defendant’s guilty plea and documents filed in court, in the early morning hours of August 6, 2017, REESE met the victim, T.M., in downtown Minneapolis. REESE offered T.M. a ride home; however, instead of driving her home, he drove her around the Twin Cities metro area against her will, and eventually drove her out of Minnesota and into Wisconsin. The defendant told the victim that he was going to take her “several states away” and use her to make money as a prostitute. The victim attempted to escape multiple times - each time she was captured and violently restrained and assaulted by REESE. A family witnessed one of the escape attempts in Foster, Wisconsin and called 911.
After the 911 call, the Wisconsin State Patrol began looking for the victim and the defendant. The victim was eventually able to free herself from the defendant, and found the Wisconsin State Patrol as she ran out of a wooded area off of Interstate 94 in Jackson County, Wisconsin. The victim’s wrists were bound and she was screaming for help. REESE came out of the same wooded area shortly after, fully naked and attempted to cross the interstate on foot. He was taken into custody.
These cases are the result of an investigation conducted by the FBI, Wisconsin State Patrol, Jackson County (Wisconsin) Sheriff’s Department, Eau Claire County (Wisconsin) Sheriff’s Department, the Minneapolis Police Department, and the Sherburne County Sheriff’s Office.
These cases are being prosecuted by Assistant U.S Attorney Angela Munoz-Kaphing.
Defendant Information:
DONTAY LAVARICE REESE, 38
Burnsville, Minnesota
Convicted:
- Kidnapping, 1 count
Sentenced:
- 324 months in prison
- 5 years of Supervised Release
- Restitution pending
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the second indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Burnsville Man Sentenced to 20 Years in Prison for Producing Child Pornography via Instagram and X-BoxRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MARCUS ALEXANDER HINKLE, 22, to 240 months in prison for producing child pornography using Instagram and X-Box. HINKLE, who pleaded guilty on September 19, 2018, to two counts of was sentenced before Judge Susan Richard Nelson in U.S. District Court in Saint Paul, Minnesota.
U.S. Attorney MacDonald said, “Sextortion crimes such as this are prevalent and often victimize the most vulnerable in our society, children. This office will continue to use all available resources to prosecute and prevent these devastating crimes.”
According to the defendant’s guilty plea and documents filed in court, from May 2017 through July 2017, HINKLE used several Instagram accounts he created under various names, including “Nation_Of_Nerve,” “Nation_Of_Nerve_VIP,” and “Globalspamnation,” to contact and communicate with minor males. HINKLE also used an X-box to communicate with the minors and to obtain sexually explicit images. HINKLE falsely represented to the minors that he was fifteen years old.
According to the defendant’s guilty plea and documents filed in court, in May of 2017, HINKLE contacted Minor #1 via Instagram and, through the course of their on-line conversations, HINKLE pressured Minor #1 to send sexually explicit images and videos. Between late June and early July of 2017, HINKLE used Minor #1 to be “introduced” to Minor #2 and, after approximately one week of communicating on-line, HINKLE asked Minor #2 to send to him sexually explicit images and videos via Instagram. HINKLE continued to pressure Minor #2 for more sexually explicit images and videos and threatened to post sexually explicit pictures of Minor #2 in a group chat if he did not comply. HINKLE did in fact send out a group chat message that contained sexually explicit pictures of Minor #2. Hinkle admitted to engaging in the same conduct with other minors. More than a dozen minors were victimized by HINKLE.
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.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case was prosecuted by Assistant United States Attorney Carol M. Kayser.
This case is the result of an investigation conducted by the FBI, the Eagan Police Department, and the Warren (Michigan) Police Department.
Defendant Information:
MARCUS ALEXANDER HINKLE, 22
Burnsville, Minn.
Convicted:
- Production of child pornography, 2 counts
Sentenced:
- 240 months in prison
- Lifetime of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Grain Elevator Manager Sentenced to 96 Months in Prison for $5 Million Fraud Scheme, Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JEROME ROBERT HENNESSEY, 56, to 96 months in prison for mail fraud and income tax evasion. HENNESSEY, who pleaded guilty on February 14, 2019, was sentenced earlier today before Chief Judge John R. Tunheim in U.S. District Court in Fergus Falls, Minnesota.
“As a manager, Mr. Hennessey held a position of trust over the Co-op’s members and their financial interests. Unfortunately, he chose to violate that trust by committing an egregious fraud, stealing from his own colleagues, friends, and neighbors,” said U.S. Attorney Erica MacDonald. “This case has had a significant impact on the Ashby community and its industry. Today’s sentencing is a just outcome and a demonstration of the U.S. Attorney’s Office’s commitment to protecting Minnesotans from all types of crime – including financial crimes.”
According to the defendant’s guilty plea and documents filed in court, from 1988 until September 2018, HENNESSEY was an employee of the Ashby Farmers’ Cooperative Elevator Company (“the Co-op”). Beginning in 2003, HENNESSEY began using his position as the general manager to steal millions of dollars from the Co-op. HENNESSEY wrote hundreds of checks to himself and to third parties for, among other things, renovations and improvements to his residence and a cabin, the purchase of real estate, furniture, jewelry, all-terrain vehicles, outstanding credit card balances, property taxes, expensive hunting trips, taxidermy services, and the shipping costs for animals he had killed during the hunting trips.
According to the defendant’s guilty plea and documents filed in court, HENNESSEY attempted to disguise the payments by writing descriptions on the carbon copies of the checks falsely indicating that the checks were for the purchase of corn and soybeans or other legitimate expenses. HENNESSEY then provided the carbon copies to the Co-op’s bookkeeper, thus ensuring that the Co-op’s accounting records would give the false impression that the funds had been used for legitimate purposes. In order to make sure that the Co-op had sufficient funds to cover its legitimate expenses and to cover the millions of dollars that HENNESSEY stole, HENNESSEY obtained a line of credit for more than $7 million. In total, HENNESSEY stole approximately $5,338,922.21.
This case was the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen prosecuted the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Convicted:
- Mail fraud, 1 count
- Income tax evasion, 1 count
Sentenced:
- 96 months in prison
- Three years of supervised release
- $5,338,922.21 in restitution to Ashby Farmers’ Cooperative Elevator Company
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Individuals Plead Guilty in 64 Pound Methamphetamine BustRead the Press Release
United States Attorney Erica H. MacDonald announced that GONZALO JIMINEZ-PAZ, JR., 22, and REY DAVID LUNA-SANTILLANES, 22, have pleaded guilty to one count each of conspiracy to possess with intent to distribute methamphetamine. JIMINEZ-PAZ and LUNA-SANTILLANES were arrested and charged on March 25, 2019. They entered their guilty pleas before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to the defendants’ guilty pleas and documents filed in court, beginning in January 2019, JIMINEZ-PAZ and LUNA-SANTILLANES entered into an agreement with each other and other individuals to distribute methamphetamine. On March 23, 2019, law enforcement officers with the Ramsey County Violent Crime Enforcement Team (VCET) executed a search warrant at a residence in the downtown area of Minneapolis. During execution of the search warrant, officers recovered approximately 64 pounds of suspected methamphetamine, a large sum of U.S. currency, three pounds of suspected heroin, a bag containing unidentified blue pills and two loaded handguns. The methamphetamine was found inside two suitcases in a bedroom closet, the heroin was hidden inside of a shoebox, and a large amount of cash was located in a kitchen cupboard.
If convicted, JIMINEZ-PAZ and LUNA-SANTILLANES face a mandatory minimum sentence of 10 years in federal prison.
This case is the result of an investigation conducted by the St. Paul Police Department, the Ramsey County VCET, the DEA, and the Minnesota State Patrol.
Assistant U.S. Attorney LeeAnn K. Bell is prosecuting the case.
Defendant Information:
GONZALO JIMINEZ-PAZ, JR., 22
Minneapolis, Minn.
Convicted:
- Conspiracy to possess with intent to distribute methamphetamine, 1 count
REY DAVID LUNA-SANTILLANES, 22
Minneapolis, Minn.
Convicted:
- Conspiracy to possess with intent to distribute methamphetamine, 1 count
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Wabasha County Brothers Plead Guilty to Multiple Violent Home Invasion Robberies, One Resulting in Victim’s DeathRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty pleas of LENNIE DWAYNE BROOKS, 33, and RANDY LORENZO BROOKS, 24, to three counts each of interference with commerce by robbery, known as the Hobbs Act. The defendants entered their guilty pleas today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. On May 14, 2019, co-defendants AUTUMN MARIE NICHOLS, 20, and ESPERANZA CARDENAS, 29, each pleaded guilty to one count of aiding and abetting interference with commerce by robbery.
United States Attorney Erica MacDonald stated, “These criminals admitted to a string of violent home invasions that ended in the tragic and senseless loss of life. Small business owners should never have to fear for their lives or the safety of their property, especially in their own homes. I commend the collaborative efforts of the many law enforcement agencies involved in this case that led to today’s guilty pleas. The United States Attorney’s Office is committed to clearing the streets of violent criminals and ensuring the safety of all Minnesotans.”
“We’re satisfied to see these men take responsibility for their actions,” said Acting Special Agent in Charge Kirk Howard of the ATF St. Paul Field Division. “The fear they instilled in the lives of small business owners was ruthless, excessive and intolerable. Hopefully, this guilty plea and future sentencing can bring closure to the families and communities affected. I’m proud of the exceptional work put into this investigation, successfully ending the Brooks brothers’ hostile home invasion streak. The strong partnerships with local law enforcement contributed greatly to this accomplishment and we are grateful for their efforts.”
According to the defendants’ guilty pleas and documents filed in court, LENNIE and RANDY BROOKS, on three separate occasions that are chargeable under the Hobbs Act, committed violent home invasion robberies and, in one incident, caused the death of a robbery victim. On October 6, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Eden Prairie, Minnesota while NICHOLS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. During that time, one of the victims went into cardiac arrest, however neither defendant called for medical help nor was the second victim allowed to call for help. The defendants stole approximately $50,000 in cash, which was the business proceeds of the Shuang Hur Asian Markets located in Minneapolis and St. Paul, Minnesota. The defendants admitted that the victim who went into cardiac arrest died as a direct result of the home invasion.
On September 23, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Ellendale, Minnesota while CARDENAS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $40,000 in cash, which was the business proceeds of the Holland Auction Company located in Ellendale, Minnesota.
On August 16, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Waite Park, Minnesota. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $180,000 in jewelry and gemstones, which belonged to Trisko Jewelry located in Waite Park, Minnesota.
The Hobbs Act, passed by Congress in 1946, prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.”
This case is the result of a multi-jurisdictional investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Eden Prairie Police Department, Steele County Sheriff’s Office, Woodbury Police Department, Cottage Grove Police Department, St. Paul Police Department, Minneapolis Police Department, Winona Police Department, Wabasha Police Department, Prior Lake Police Department, Southeast Minnesota Violent Crime Enforcement Team, St. Croix County Sheriff’s Office, Wabasha County Sheriff’s Office, Washington County Sheriff’s Office, Olmstead County Sheriff’s Office, Winona County Sheriff’s Office, Waite Park Police Department, Owatonna Police Department, Nisswa Police Department, Goodhue County Sheriff’s Office, Red Wing Police Department, Mason City Police Department, Freeborn County Sheriff’s Office, and the Albert Lea Police Department. This case was brought as part of Project Safe Neighborhoods (“PSN”), an initiative that brings together federal, state and local law enforcement to combat violent crime and make neighborhoods safer for everyone.
Assistant United States Attorney Jeffrey S. Paulsen is prosecuting the case.
Defendant Information:
LENNIE DWAYNE BROOKS, 33
Zumbro Falls, Minn.
Convicted:
- Interference with Commerce by Robbery, 3 counts
RANDY LORENZO BROOKS, 24
Wabasha, Minn.
Convicted:
- Interference with Commerce by Robbery, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Men Found Guilty of Robbing A North Minneapolis Convenience StoreRead the Press Release
United States Attorney Erica H. MacDonald announced the conviction of MARIO MARTELL SPENCER, 34, AHMED OSMAN FARAH, 32, for the armed robbery of a Minneapolis convenience store. Following a six-day trial before U.S. District Judge Wilhelmina M. Wright, the jury found SPENCER and FARAH guilty on all counts.
“Mr. Spencer and Mr. Farah carried out the armed robbery of a small business located in a residential neighborhood,” said U.S. Attorney Erica MacDonald. “This guilty verdict is a just result and a demonstration of our commitment to keeping our neighborhoods and communities safe from violent criminals.”
As proven at trial, on March 23, 2018, around 8:30 p.m., SPENCER and FARAH entered Penn-Wood Market, located on Glenwood Avenue in Minneapolis, wearing masks and gloves. SPENCER held two employees at gunpoint while FARAH took money from the cash registers and stole one employee’s cell phone. The two defendants fled the scene in a vehicle. A witness called 911 as the robbery was in progress and, shortly after, responding officers were able to locate the defendants’ unoccupied vehicle, which had crashed into a garage. Law enforcement set up a perimeter around the area of the crash site and, following a foot chase, were able to apprehend and arrest FARAH. With the assistance of a K9, law enforcement officers initiated a systematic search inside the perimeter and eventually found SPENCER hiding on top of the roof of a garage.
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 was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorneys Nathan H. Nelson and Justin A. Wesley tried the case.
Defendant Information:
MARIO MARTELL SPENCER, 34
St. Paul, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
AHMED OSMAN FARAH, 32
Maplewood, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Thief River Falls Chiropractor Sentenced to 27 Months in Prison for Wire Fraud and Identity TheftRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of STEVEN RICHARD WISETH, 36, a Thief River Falls chiropractor, to 27 months in prison for wire fraud. WISETH, who pleaded guilty on January 17, 2019, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. In addressing WISETH’s fraud scheme and other similar schemes that have occurred within the chiropractic profession, Judge Schiltz stated, “There seems to be a lot of rot in that profession and deterrence seems to be much needed,” and further stated that WISETH’s fraud was a “part of his routine business practice.”
According to his guilty plea and documents filed in court, from approximately March 2013 through April 2015, WISETH, a Doctor of Chiropractic and owner of Health Quest Family Chiropractic (“Health Quest”) in Thief River Falls, Minnesota, orchestrated a scheme to defraud health insurers by submitting and causing the submission of false and fraudulent claims for chiropractic services.
WISETH’S scheme was dependent on maximizing patient volume at Health Quest, and he held promotional events where he gave away free food and drink, prizes, and gift certificates to induce current and prospective patients to visit Health Quest. After the promotional events, WISETH billed insurance companies for the provision of chiropractic services to substantial numbers of individuals who attended the events, including billing for services that were not provided. In some cases, WISETH used the personal and insurance information of attendees to bill the individuals’ insurance companies for services that were not provided, unbeknownst to the attendee. For example, on February 13, 2014, WISETH held a promotional event at Health Quest that he referred to as “ValenSpine’s Day.” WISETH submitted bills to insurance companies representing that he had treated approximately 219 patients on that day, purporting to have provided approximately 641 services.
WISETH also admitted to submitting false bills for services by misrepresenting the services that were actually provided to patients. For example, WISETH routinely submitted false bills for treatment with a “wobble chair,” which is a device intended to develop core strength. WISETH represented to insurers that the services were performed for at least eight minutes under the direct supervision of a healthcare professional when, in fact, WISETH merely stocked his clinics’ waiting rooms with wobble chairs so that patients would sit in them while waiting for their appointments.
Over the course of the two-year scheme, WISETH billed the insurance companies more than $3.1 million dollars, including bills for hundreds of treatments that were not provided or were overbilled, and the insurance companies paid WISETH and Health Quest more than $1.1 million.
This case was the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the United States Postal Inspection Service.
Assistant U.S. Attorney Amber M. Brennan prosecuted the case.
Defendant Information:
STEVEN RICHARD WISETH, 36
Thief River Falls, Minn.
Convicted:
- Wire fraud, 1 count
Sentenced:
- 27 months in prison
- One year of supervised release
- $337,195.11 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minnesota Attorney Sentenced to 168 Months in Prison for Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PAUL R. HANSMEIER, 37, to 168 months in prison for orchestrating a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. HANSMEIER, who pleaded guilty on August 17, 2018, was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. HANSMEIER’S co-defendant JOHN L. STEELE also pleaded guilty to his role in the scheme. STEELE is scheduled to be sentenced on July 9, 2019.
United States Attorney Erica MacDonald said, “Paul Hansmeier abandoned his sworn oath to uphold the law and chose instead to use coercion and lies to exploit victims and deceive judges. The sentence he received today is a just consequence for his actions.”
“Today's sentence for Paul Hansmeier is the just result for an attorney who abused his license to practice law and disgraced himself and the bar in so many ways,” said Jill Sanborn, Special Agent in Charge of the FBI's Minneapolis Division. “Hansmeier’s role in this salacious fraud scheme exploited victims by misusing his position of trust as an officer of the court. The FBI is grateful for the victims who came forward in this case because their information was critical to our work.”
“Today justice has been served with the fourteen-year sentencing of Mr. Hansmeier,” stated Tara Sullivan, IRS Criminal Investigation Special Agent in Charge of the Chicago Field Office. “Mr. Hansmeier greatly misused his position as an attorney by preying upon unsuspecting individuals for nothing but pure power and greed. IRS Criminal Investigation is proud to have worked alongside with the U.S. Attorney’s Office and the FBI to dismantle this money laundering enterprise created by Hansmeier and his partner.”
According to his guilty plea and documents filed in court, between 2011 and 2014, HANSMEIER and STEELE, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who allegedly downloaded pornographic movies from file-sharing websites. HANSMEIER admitted in court during his plea that he and STEELE created a series of sham entities, which he and STEELE surreptitiously controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. The defendants then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, HANSMEIER and STEELE gained authority from the courts to subpoena internet service providers (“ISPs”) for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
According to the Indictment, the plea agreement, and other court documents, in November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, HANSMEIER and STEELE created and used Prenda Law, among other law firms, to pursue their fraudulent lawsuits. HANSMEIER acknowledged at his plea hearing that he and STEELE exerted de facto control over Prenda Law throughout the scheme, but recruited a now-deceased Illinois attorney to pretend to own and control the law firm.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, HANSMEIER and STEELE recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants.” These ruse defendants agreed to be sued and permit HANSMEIER and STEELE to conduct early discovery against their supposed “co-conspirators” in exchange for HANSMEIER and STEELE waiving their settlement fees. During his plea hearing, HANSMEIER admitted that the allegations of “hacking” in these complaints were made up.
In total, HANSMEIER and STEELE obtained approximately $3 million from the fraudulent copyright lawsuits.
This case is the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Benjamin F. Langner and David J. MacLaughlin of the District of Minnesota, and Senior Trial Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section, prosecuted the case.
Defendant Information:
PAUL R. HANSMEIER, 37
Woodbury, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 168 months in prison
- Two years of supervised release
- Restitution in the amount of $1,541,527.37
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Coborn’s Pharmacy to Pay $225,000 for Violations of the Controlled Substances Act Resulting in Theft of OpioidsRead the Press Release
United States Attorney Erica MacDonald today announced that COBORN’S, INCORPORATED d/b/a COBORN’S PHARMACY has agreed to pay $225,000 in civil penalties for allegedly failing to comply with recordkeeping and other requirements of the Controlled Substances Act, which enabled a Coborn’s Pharmacy employee to engage in a years-long pattern of diverting opioids for personal use.
According to the allegations, between 2011 and 2015, COBORN’S PHARMACY did not adequately monitor its employee’s conduct, and failed to keep complete and accurate records regarding the receipt and dispensing of Schedule II controlled substances, including but not limited to oxycodone and hydrocodone. These alleged violations enabled the pharmacist in charge of one of COBORN’S PHARMACY’s retail stores to fabricate nine patient accounts and create numerous false prescriptions that were recorded on COBORN’S PHARMACY’s computerized prescription management system. At the time, COBORN’S PHARMACY’S system did not consistently identify and process cash prescriptions, failing to prevent the diversion that occurred.
Congress enacted the Controlled Substances Act’s recordkeeping and prescribing requirements to prevent the diversion of controlled substances for illegal purposes. As a result of COBORN’S PHARMACY’s alleged actions, hundreds of doses of controlled substances went unaccounted for and were diverted for illicit purposes, namely personal use by the pharmacist in charge.
Upon learning of its employee’s pattern of theft, COBORN’S PHARMACY reported the misconduct to the Drug Enforcement Administration (DEA), leading to a federal investigation that resulted in the pharmacist in charge pleading guilty to Obtaining Controlled Substances by Fraud in violation of 21 U.S.C. §§ 843(a)(3) and (d)(1). COBORN’S PHARMACY has since enhanced its recordkeeping and compliance program, including making needed improvements to its computerized prescription management system, in response to concerns raised by DEA in the course of an audit revealing shortages and overages of various controlled substances and problematic recordkeeping procedures. This settlement addresses the independent obligation of COBORN’S PHARMACY to ensure it has systems in place adequate to prevent theft and fraudulent prescriptions from occurring in the future, as required by 21 U.S.C. §§ 827, 829, 942, and associated regulations.
“Prescription drug diversion can lead to devastating consequences for individuals, families and communities,” said U.S. Attorney Erica MacDonald. “Pharmacies must uphold their obligation to ensure that these dangerous drugs are tracked and safeguarded in compliance with the Controlled Substances Act’s strict requirements.”
“Pharmacies are responsible for helping ensure that medications are not diverted,” Drug Enforcement Administration Omaha Division Diversion Program Manager William Stockmann said. “In addition to policing employees and customers, pharmacies are required to inventory their controlled substances, verify the dispensing of controlled substances and monitor daily record-keeping requirements. When one or more of these responsibilities break down, diversion occurs and medication has the potential to fall into the wrong hands. As seen with this pharmacist, opioid addiction and abuse can affect anyone, no matter the profession. Addiction does not discriminate.”
This case was investigated by the Diversion Group of the Drug Enforcement Administration, Minneapolis-St. Paul District Office and handled by the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office for the District of Minnesota.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Final Defendant Pleads Guilty in Red Lake Heroin Conspiracy That Resulted in the Shooting Deaths of Two IndividualsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of KRISTOPHER SULLIVAN, a/k/a “Blood Money,” 24, for his role in a heroin distribution conspiracy that resulted in the shooting deaths of two individuals. SULLIVAN entered his guilty plea before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota. SULLIVAN’s co-defendants BRYAN BOARDMAN, a/k/a “Boon,” 25, and FRANKLIN JACKSON, a/k/a “Frankie,” 23, previously pleaded guilty to one count each of conspiracy to distribute heroin.
According to the defendants’ guilty pleas and documents filed in court, between October 1, 2018, and October 21, 2018, SULLIVAN conspired with BOARDMAN and JACKSON to distribute heroin on the Red Lake Indian Reservation. In the early morning hours of October 21, 2018, SULLIVAN, BOARDMAN, and JACKSON met in a trailer home on the Red Lake Indian Reservation belonging to JACKSON’s girlfriend. The three defendants made preparations to sell heroin later that day, including contacting potential customers to let them know that heroin was available for sale at the trailer home. The defendants’ drug trafficking activities were interrupted at approximately 6:30 a.m. that morning when three armed, masked men broke into the trailer home in an apparent armed robbery. BOARDMAN drew a 9 millimeter pistol and fired eight shots, killing two of the intruders. The third intruder was wounded in the leg by the gunfire and fled from the scene.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
KRISTOPHER SULLIVAN, a/k/a “Blood Money,” 24
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Courtland Man Sentenced to 40 Years in Prison for Production of Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PHILLIP MARK REINHART, 38, to 40 years in prison for production and attempted production of child pornography. REINHART, who pleaded guilty on January 17, 2019, was sentenced before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, between May 2017 and March 2018, REINHART created and attempted to create sexually explicit images of two minors who were seven and nine years old at the time of the offense. REINHARD then distributed those images, along with other images and videos of child pornography, via Kik Messenger.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI and the Nicollet County Sheriff's Office.
Assistant U.S. Attorney Manda M. Sertich prosecuted the case.
Defendant Information:
PHILLIP MARK REINHART, 38
Courtland, Minn.
Convicted:
- Production of child pornography, 1 count
- Attempted production of child pornography, 1 count
Sentenced:
- 480 months in prison
- 20 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Individuals Charged with Robbery of A Red Lake RestaurantRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging COURTNEY JOHN BARRETT, JR., 30, and ROBERT LEE JOURDAIN, SR., 25, with robbery. BARRETT and JOURDAIN were arrested this morning and will make an initial appearance later today before Magistrate Judge Jon T. Huseby in U.S. District Court in Bemidji, Minnesota.
According to the allegations in the indictment and documents filed in court, on May 1, 2019, BARRETT and JOURDAIN entered the Snack Shack on the Red Lake Indian Reservation armed with a metal pipe and a firearm. BARRETT held the metal pipe to an employee’s head while JOURDAIN brandished the firearm and stole money from the cash register and an employee’s purse.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Special Assistant U.S. Attorney Gina L. Allery is prosecuting the case.
Defendant Information:
COURTNEY JOHN BARRETT, JR., 30
Red Lake, Minn.
Charges:
- Robbery, 1 count
ROBERT LEE JOURDAIN, SR., 25
Red Lake, Minn.
Charges:
- Robbery, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Federal Prison Inmate Charged with Possessing ContrabandRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment against NATHAN DANIEL BROOKS, 37, charging him with three counts of possessing contraband in prison. BROOKS made his initial appearance today before Magistrate Judge Leo I. Brisbois in U.S. District Court in Duluth, Minnesota.
According to the indictment, BROOKS was an inmate of the Duluth Federal Prison Camp on March 24, 2019, when he possessed, obtained, and attempted to obtain several items of illegal contraband, including cannabis and cannabis-infused items, cell phones, tobacco, cigarettes, rolling papers, mp3 players, and other electronic devices.
If convicted, BROOKS faces a potential maximum penalty of 10 years in prison.
This case is the result of an investigation conducted by the Federal Bureau of Prisons and the FBI.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Defendant Information:
NATHAN DANIEL BROOKS, 37
Duluth Federal Prison Camp
Charges:
- Possessing contraband in prison, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Red Lake Man Sentenced to 22 Years in Prison for Second Degree MurderRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of MICHAEL WAYNE WHITEFEATHER, 18, to 264 months in prison for murder in the second degree. WHITEFEATHER, who pleaded guilty on December 17, 2018, was sentenced today by Judge Susan Richard Nelson in U.S. District Court in Saint Paul, Minnesota.
United States Attorney Erica MacDonald said, “This tragic and senseless act of violence resulted in the death of an innocent young man. We are working in collaboration with our federal, state, local and tribal law enforcement partners to do all we can to protect our communities from violent crimes such as this.”
According to the defendant’s guilty plea and documents filed in court, during the early morning hours of April 28, 2018, WHITEFEATHER and several other members of the Back of Town (“BOT”) gang were driving around looking for rival gang members on the Red Lake Indian Reservation. They encountered the victim and another male walking in a parking lot between the Red Lake Skate Park and the Red Lake Middle and High Schools. WHITEFEATHER and the other BOT gang members mistakenly thought the victim was a rival gang member. WHITEFEATHER exited the vehicle, retrieved a shotgun, and chased after the victim on foot. When WHITEFEATHER caught up to the victim, he assaulted him and shot him in the face, resulting in the victim’s death.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety, the FBI Headwaters Safe Trails Task Force, the Paul Bunyan Drug Task Force, the Bemidji Police Department, the Beltrami County Sheriff's Office, and United States Customs and Border Protection. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
This case is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
MICHAEL WAYNE WHITEFEATHER, 18
Red Lake, Minn.
Convicted:
- Murder in the second degree, 1 count
Sentenced:
- 264 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tennessee Man Sentenced to 20 Years in Prison for String of Robberies of Twin Cities Auto Parts StoresRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of TONY LENDELL REED, 33, of Memphis, Tennessee, to 240 months in prison for robbery. On February 1, 2019, a federal jury convicted REED of six counts of interference with commerce by robbery, known as the Hobbs Act. The Hobbs Act prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.” REED was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
United States Attorney Erica MacDonald stated, “Today’s sentence is an appropriate and just response to Mr. Reed’s callous criminal acts. This sentence is also a testament to the commitment my office, and our local law enforcement partners, have to keeping the public safe from those who bring fear and violence to our community.”
Co-defendants ORLANDO LORENZO HARRIS, 35, DERF REGLAN RAHINE REED, 46, and TYRELL DANDRE CAMPBELL, 24, each entered guilty pleas in connection with the Hobbs Act robberies. HARRIS was sentenced on April 8, 2019, to 38 months in prison. DERF REED was sentenced on May 17, 2019, to 43 months in prison. CAMPBELL will be sentenced at a later date.
As proven at trial and in documents filed in court, between June 12 and November 29, 2017, on six separate occasions, REED and his co-defendants robbed auto parts stores located throughout the Twin Cities metro area. During each of the robberies, the defendants displayed what appeared to the victims to be a gun, threatened the victims, and demanded money. REED and his co-defendants also restrained the employees of the stores they robbed, using zip ties to bind the victims’ wrists and ankles.
This case was the result of an investigation conducted by the Minneapolis Division, Chicago Division, and Memphis Division of the FBI, the Minneapolis Police Department, the Crystal Police Department, the Columbia Heights Police Department, the White Bear Lake Police Department, the Anoka County Sheriff’s Office, and the Holly Springs, Mississippi Police Department. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Assistant United States Attorneys LeeAnn K. Bell and Ruth S. Shnider prosecuted the case.
Defendant Information:
TONY LENDELL REED, 33
Memphis, Tennessee
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 6 counts
Sentenced:
- 240 months in prison
- Three years of supervised release
ORLANDO LORENZO HARRIS, 35
Minneapolis, Minnesota
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 2 counts
Sentenced:
- 38 months in prison
- Three years of supervised release
DERF REGLAN RAHINE REED, 46
Chicago, Illinois
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 1 count
Sentenced:
- 43 months in prison
- Two years of supervised release
TYRELL DANDRE CAMPBELL, 24
Minneapolis, Minnesota
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Saint Paul Felon Charged with Heroin Distribution, Illegal Possession of Six FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging PHELIXIS FITZGERALD MAR ROBINSON, a/k/a “Storm,” 44, with possession and distribution of heroin and firearms violations. ROBINSON was arrested and made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minnesota.
According to the allegations in the indictment, in March 2019, ROBINSON distributed heroin and knowingly possessed, with the intent to distribute, more than one kilogram of heroin. ROBINSON was also in possession of six firearms, including a Glock model 22 .40 caliber semi-automatic pistol, a Taurus model Protector .38 caliber revolver, a Beretta model 96 .40 caliber semi-automatic pistol, a Glock model 30 .45 caliber semi-automatic pistol, a Bersa model Thunder .380 caliber semi-automatic pistol, and a SCCY model CPX-2 9mm semi-automatic pistol. The firearms and more than $545,000 in cash were seized by law enforcement from two separate storage lockers belonging to ROBINSON. Because he is a felon, ROBINSON is prohibited under federal law from possessing any type of firearm at any time.
This case is the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force and the Drug Enforcement Administration. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Assistant United States Attorney Thomas Calhoun-Lopez is prosecuting the case.
Defendant Information:
PHELIXIS FITZGERALD MAR ROBINSON, a/k/a “Storm,” 44
St. Paul, Minn.
Charges:
- Possession with intent to distribute heroin, 1 count
- Distribution of heroin, 1 count
- Felon in possession of firearms, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Native Mob Gang Member Sentenced to 366 Months in Prison for Assault in Aid of Racketeering, Witness RetaliationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DAKOTA JAMES LAFAVE, aka “Biggs,” 30, to 366 months in prison for assault with a dangerous weapon in aid of racketeering, witness retaliation, and discharge of a firearm in furtherance of a crime of violence. LAFAVE, who pleaded guilty on January 22, 2019, was sentenced before Chief Judge John R. Tunheim in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, since 2006, LAFAVE has been a member of the Native Mob gang, a criminal enterprise whose members and associates engage in acts of violence, including murder, attempted murder, assault, robbery, and threats of violence in order to preserve and protect power, territory, reputation, and profits of the enterprise. Members and associates of the Native Mob meet regularly to discuss, among other things, acts of violence and crimes committed against rival gang members, gang rules and by-laws, law enforcement interactions, and to share with one another the identities of individuals who might be cooperating with law enforcement and propose actions to be taken against those individuals.
According to the defendant’s guilty plea and documents filed in court, on October 27, 2017, LAFAVE shot a former Native Mob gang member in the back. LAFAVE admitted that his motive for the shooting was two-fold: first, it was an act of retaliation against that individual for testifying against Native Mob gang members in a federal racketeering conspiracy trial in 2013; and second, an unprovoked attack such as this would maintain or increase LAFAVE’s position within the Native Mob.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Mille Lacs Tribal Police Department, and the Minnesota Department of Corrections.
Assistant U.S. Attorneys Andrew R. Winter and Bradley Endicott prosecuted the case.
Defendant Information:
DAKOTA JAMES LAFAVE, aka “Biggs,” 30
Fond du Lac, Minn.
Convicted:
- Assault with a dangerous weapon in aid of racketeering, 1 count
- Witness retaliation (bodily injury), 1 count
- Discharge of a firearm during and in relation to crimes of violence, 1 count
Sentenced:
- 366 months in prison
- 3 years Supervised Release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Burnsville Woman Sentenced to 24 Months in Prison for Intending to Distribute HeroinRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ANGELICA PINO PERALTA, 37, to 24 months in prison for possession with intent to distribute heroin. PERALTA, who pleaded guilty on January 22, 2019, was sentenced on May 17, 2019, before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed with the court, on October 10, 2018, police searched PERALTA’s apartment in Burnsville, and seized over eight pounds (3,662.73 grams) of heroin. PERALTA admitted that she intended to distribute a portion of the heroin. PERALTA is a Mexican national and is potentially subject to deportation upon completion of her sentence.
This case was the result of an investigation conducted by the Cannon River Drug and Violent Offender Task Force, the United States Drug Enforcement Administration, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Tom Hollenhorst prosecuted the case.
Defendant Information:
ANGELICA PINO PERALTA, 37
Burnsville, Minn.
Convicted:
- Possession with intent to distribute, 1 count
Sentenced:
- 24 months in prison
- 3 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Champlin Man for String of Twin Cities RobberiesRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of MARTAVIS SHAWN DEMAR JAMES, 38, for the robbery and attempted robbery of 10 Twin Cities businesses. Following a four-day trial before U.S. District Judge Susan Richard Nelson, the jury found JAMES guilty on all counts.
United States Attorney Erica MacDonald said, “Over the course of several weeks, Mr. James carried out a brazen crime wave across the Twin Cities, targeting businesses in densely populated areas and robbing employees at gunpoint. Under the Project Safe Neighborhoods initiative, I have dedicated significant resources to pursuing violent criminals and combating gun-related violent crime such as this. When it comes to protecting our communities, we will not relent.”
As proven at trial, between March and June of 2018, JAMES robbed or attempted to rob at least 10 businesses located across the Twin Cities metro area, including locations in Anoka, Hennepin, and Ramsey Counties. The robberies mostly involved CVS Pharmacy stores across the Twin Cities metropolitan area, as well as a Dollar Tree Store in Coon Rapids and a Blaine BigLots store. In each successful robbery instance, JAMES wore a black hooded coat, a black mask and black gloves. He would point a firearm at the store employee(s), demand access to the business safe, order the employee(s) to put the cash into a duffel bag, and order them to the ground before fleeing.
As proven at trial, after gathering information on the robberies, law enforcement identified JAMES and began conducting surveillance on him. On June 1, 2018, law enforcement agents followed JAMES as he drove to a CVS store in Eden Prairie. Law enforcement agents and officers, as well as CVS security personnel, were able to lock the front doors of the CVS store prior to JAMES’ arrival, preventing him from gaining entry when he ultimately approached. When JAMES returned to his vehicle he was apprehended law enforcement.
This case is the result of an investigation conducted by the Minneapolis Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, with assistance from multiple local agencies and departments that initially investigated the robberies that occurred in their jurisdictions. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorney Allen A. Slaughter tried the case.
Defendant Information:
MARTAVIS SHAWN DEMAR JAMES, 38
Champlin, Minn.
Convicted:
- Hobbs Act Robbery, 8 counts
- Attempted Hobbs Act Robbery, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minneapolis Man Sentenced to 90 Months in Prison for Selling Heroin on the White Earth ReservationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of STEVEN MITCHELL GANT, 38, to 90 months in prison for conspiring to distribute heroin on the White Earth Indian Reservation. GANT, who pleaded guilty on January 16, 2019, was sentenced today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed with the court, from October 2017 through February 20, 2018, GANT conspired with another individual to distribute heroin on the White Earth Indian Reservation and the surrounding communities. The heroin was obtained from a source in Texas and then transported to Minnesota, where GANT acquired it. GANT admitted to traveling to the White Earth Indian Reservation to sell heroin approximately 25 times.
This case was the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the West Central Minnesota Drug & Violent Crimes Task Force, the White Earth Police Department, and the Becker County Sheriff’s Office.
Assistant U.S. Attorney Deidre Y. Aanstad prosecuted the case.
Defendant Information:
STEVEN MITCHELL GANT, 38
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
Sentenced:
- 90 months in prison
- Five years of supervised release
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Saint Paul Man Sentenced to Prison After Firing A Shotgun at the Federal Reserve BankRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CHRISTOPHER DOUGLAS WOOD, 43, to eight months of confinement after firing three shotgun rounds at the Federal Reserve Bank building in downtown Minneapolis. WOOD, who pleaded guilty on December 17, 2018, was sentenced before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on the night of July 21, 2018, during the Aquatennial Fireworks display, WOOD fired three shotgun “slugs” at the Federal Reserve Bank (“FRB”) that caused more than $40,000 in property damage to the windows and the façade of the FRB. One of the slugs penetrated the triple-pane security windows and was later located in the ceiling of a seventh floor office of the FRB.
According to the defendant’s guilty plea and documents filed in court, WOOD fired the shots from a United States Postal Service (“USPS”) facility located directly across from the FRB. At the time of the shooting, WOOD was an employee of the USPS and had access to the facility and the secure parking structure from which he fired the shots. During the course of the investigation, law enforcement conducted a search of WOOD’s residence and recovered a loaded 12-gauge shotgun, a .22 semiautomatic handgun with a loaded magazine, a Snake Slayer pistol, ammunition, and documents critical of the FRB.
This case was the result of an investigation conducted by the FBI, the Minneapolis Police Department, the United States Postal Inspection Service, and the United States Postal Service, Office of Inspector General (USPS-OIG).
Assistant U.S. Attorney Charles J. Kovats prosecuted the case.
Defendant Information:
CHRISTOPHER DOUGLAS WOOD, 43
St. Paul, Minn.
Convicted:
- Possession of a firearm in a federal facility, 1 count
Sentenced:
- 8 months confinement
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney’s Office, FBI and Bloomington Police Department Will Host Community Meeting to Discuss SextortionRead the Press Release
United States Attorney Erica H. MacDonald, Special Agent in Charge of the FBI Minneapolis Division Jill Sanborn, and Bloomington Police Chief Jeff Potts will convene a community meeting on May 14, 2019, to talk about the issue of sextortion and the alarming increase that law enforcement is seeing in these types of cases. Sextortion is a type of online sexual exploitation where victims are coerced into providing sexually explicit images or videos often in compliance with a threat being made against them or their loved ones. Join us for a panel discussion highlighting the issue of sextortion, trends in victimization, recent cases, prevention tips, and what to do if you or a loved one becomes a target. Parents, teachers, students, law enforcement, and community leaders are encouraged to attend.
This event is free and open to the public. The meeting will take place on Tuesday, May 14, 2019, from 6:00-8:00 p.m. at the Bloomington Center for the Arts in Bloomington, Minnesota. For more information, please visit /media/1001006/dl?inline
NOTE: This event is open press. All media must RSVP to [email protected] and present valid media credentials at the event.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three Men Charged in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald announced an indictment charging HUMBERTO TORRES-RODRIGUEZ, 38, JOSE ALFREDO PENALOZA ROMERO, 22, and IRWIN ENRIQUE BECERRA, 22, with conspiring to distribute methamphetamine. The defendants will make their initial appearances in U.S. District Court at a later date.
According to the indictment and documents filed in court, on April 3, 2019, Colorado law enforcement conducted a traffic stop on a California-plated vehicle. The driver, TORRES-RODRIGUEZ, consented to a search of the vehicle. Officers recovered more than 55 pounds of methamphetamine in a false compartment, or “trap,” inside the vehicle. The following day, TORRES-RODRIGUEZ made phone calls to ROMERO and BECERRA to coordinate the delivery and pickup of the methamphetamine in Minnesota. On April 5, 2019, law enforcement established surveillance at the defendants’ agreed-upon meeting location in Bloomington, Minnesota. The three defendants arrived at the meeting location and law enforcement observed BECERRA give TORRES-RODRIGUEZ money in exchange for the methamphetamine. All three defendants were taken into custody. Following the arrests, law enforcement executed a follow-up search warrant at ROMERO's residence in Minneapolis and recovered an additional sixteen (half-pound to pound) packages of methamphetamine and approximately $30,000 in U.S. currency.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the St. Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Bradley M. Endicott.
Defendant Information:
HUMBERTO TORRES-RODRIGUEZ, 38
Los Angeles, Calif.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
JOSE ALFREDO PENALOZA ROMERO, 22
Minneapolis, Minn.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
IRWIN ENRIQUE BECERRA, 22
Kansas City, Mo.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sauk Rapids Man Indicted on 33 Counts of Filing False Tax ReturnsRead the Press Release
United States Attorney Erica H. MacDonald today announced a 33-count indictment charging ADAM M. LASHINSKI, 40, with filing false tax returns. LASHINSKI will make his initial appearance in U.S. District Court at a later date.
According to the allegations in the indictment, LASHINSKI, who falsely claimed to be a certified public accountant, prepared and filed dozens of fraudulent federal individual income tax returns for his acquaintances between 2013 and 2015. The charges state that LASHINSKI repeatedly filed returns in the names of the taxpayers that omitted taxable income and claimed false adjustments, deductions, and business expenses, which resulted in larger refunds than what the taxpayers were actually entitled to receive. To obtain additional profits beyond the small payments LASHINSKI received from the taxpayers for his services, the indictment alleges that LASHINSKI filed documentation with the IRS to cause portions of the fraudulent refunds to be paid directly into his personal bank account.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, with assistance from the Minnesota Department of Revenue.
These cases are being prosecuted by Assistant U.S. Attorney Robert M. Lewis.
Defendant Information:
ADAM M. LASHINSKI, 40
Sauk Rapids, Minn.
Charges:
- Filing false tax returns, 33 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Hennepin County Employee and Husband Plead Guilty to Theft of Government FundsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty pleas of ROBERT ANTHONY COLEMAN, 45, and YOLANDA YVETTE COLEMAN aka YOLANDA YVETTE PITTMAN, 50, for conspiring to defraud multiple government social services programs over the course of several years. The defendants entered their guilty pleas today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to the defendants’ guilty pleas and documents filed with the court, from 2002 through December 2016, PITTMAN was employed by the Hennepin County Human Services and Public Health Department (HSPHD). From at least October 2009, PITTMAN’s job duties gave her access to computer databases used in processing applications for government benefits intended to assist low-income persons with food, medical, and other living expenses, including Medical Assistance and SNAP food stamp benefits. During this time, PITTMAN became romantically involved with COLEMAN, who was a HSPHD client prior to and continuing into their relationship. PITTMAN and COLEMAN were married on August 17, 2014.
According to the defendants’ guilty pleas and documents filed with the court, from October 2010 through August 2018, PITTMAN and COLEMAN conspired to fraudulently obtain Section 8 rental housing assistance subsidies, SNAP benefits, Medical Assistance benefits, Supplemental Security Income (SSI) benefits from the Social Security Administration, and other public assistance, by concealing information and submitting false applications to the government entities responsible for implementing these programs. For example, PITTMAN and COLEMAN failed to disclose that they resided together while COLEMAN received Section 8, SNAP, Medical Assistance, and SSI public assistance benefits. PITTMAN also acted as COLEMAN’S Personal Care Attendant (PCA) for several years, with COLEMAN’S Medical Assistance benefits paying for these PCA services. The Government contends the total loss amount, which will be established at sentencing, is $248,838.
This case is the result of an investigation conducted by the Department of Housing and Urban Development – Office of the Inspector General, Hennepin County Fraud Investigations Unit, and the Social Security Administration – Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Sarah Hudleston and Special Assistant U.S. Attorney Lindsey Middlecamp.
Defendant Information:
ROBERT ANTHONY COLEMAN, 45
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
YOLANDA YVETTE COLEMAN, aka YOLANDA YVETTE PITTMAN, 50
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
- Conspiracy to commit theft of government funds, 1 count
Armed Career Criminal Charged with Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging PERCY LEE STROTHER JR., 47, with two counts of possession of a firearm by a convicted felon. STROTHER will make his initial appearance in U.S. District Court at a later date.
According to the allegations in the indictment, on October 12, 2018, and January 5, 2019, STROTHER was found to be in possession of firearms, namely, a Beretta, Model 92F, 9 millimeter semi-automatic pistol and a Jennings, Model Bryco 59, .380 caliber semi-automatic pistol. Because he has prior felony convictions in Hennepin and Dakota Counties, STROTHER is prohibited under federal law from possessing firearms at any time. If convicted of the charges, STROTHER faces a mandatory minimum sentence of 15 years in federal prison.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Plymouth Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
This case is being prosecuted by Assistant U.S. Attorney Bradley M. Endicott.
Defendant Information:
PERCY LEE STROTHER JR., 47
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm (Armed Career Criminal), 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ramsey County Man Indicted for Sexually Exploiting Children in the PhilippinesRead the Press Release
United States Attorney Erica H. MacDonald today announced a fourteen-count federal indictment charging ALAN DENNIS WOLFF, 56, with sexually exploiting children in the Philippines. WOLFF was initially charged in a criminal complaint on April 5, 2019, and was indicted on May 6, 2019. He is currently in custody in the Sherburne County Jail pending further court proceedings.
According to the allegations in the indictment and the criminal complaint, from January 2013 through February 2019, WOLFF used various Facebook accounts to communicate with other Facebook accounts purporting to belong to minor girls, some as young as 13 years old, in the Philippines. WOLFF repeatedly engaged the girls in graphic, sexually explicit conversations, sometimes telling the girls that he loved them, wanted to marry them, and wanted to meet them during his next trip to the Philippines. WOLFF repeatedly asked the minor girls to send him naked images or recordings and, on several occasions, he sent the girls images and recordings of himself that were sexual in nature. WOLFF also sent money via MoneyGram to the Philippines in exchange for the images and recordings. WOLFF traveled to the Philippines at least three times.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Kayser.
Defendant Information:
ALAN DENNIS WOLFF, 56
Ramsey County, Minn.
Charges:
- Sexual exploitation of children, 12 counts
- Transfer of obscene material to minors, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Moldovan National Pleaded Guilty to Faking His Death for $2 Million Insurance PayoutRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of IGOR VOROTINOV, 54, for faking his death in order to collect a $2 million life insurance payment. VOROTINOV pleaded guilty earlier today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. VOROTINOV’s co-defendants, IRINA VOROTINOV and ALKON VOROTINOV, have been convicted and sentenced for their roles in the scheme. VOROTINOV is scheduled to be sentenced on July 29, 2019.
According to the defendant’s guilty plea and documents filed in court, in March 2010, IGOR VOROTINOV obtained a $2 million life insurance policy on his own life from Mutual of Omaha Insurance Company (Mutual of Omaha), and designated his wife, IRINA VOROTINOV, as the primary beneficiary.
According to the defendant’s guilty plea and documents filed in court, On October 1, 2011, the Moldovan police discovered the corpse of an adult male decedent by the side of a road near the Moldovan village of Cojusna. Based upon the dead body and the defendant’s identification documents in its clothing, the Moldovan police and a Moldovan morgue official purported to determine that Igor Vorotinov had died of a heart attack on October 1, 2011. After his purported death, VOROTINOV began using the name “Nikoly Patoka” and lived in Transnistria, a small Russian-controlled region of Moldova, from approximately 2012 until approximately November 2018.
According to the defendant’s guilty plea and documents filed in court, on November 7, 2011, IRINA VOROTINOV submitted a claim for death benefits against the Mutual of Omaha life insurance policy, claiming that VOROTINOV had died in the Republic of Moldova on October 1, 2011. VOROTINOV was aware of his former wife’s filing of the fraudulent death claim, and therefore continued living and doing business as “Nikoly Patoka.” On March 23, 2012, Mutual of Omaha mailed a check payable to IRINA VOROTINOV in the amount of $2,048,414.09 to her home in Maple Grove, Minnesota.
According to documents filed in court, IRINA recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at U.S. Bank in the name of her son, ALKON VOROTINOV. Between March 29, 2012 and January 2015, more than $1.5 million of the life insurance proceeds were transferred to accounts located in Switzerland and Moldova.
According to documents filed in court, on November 27, 2013, ALKON VOROTINOV was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of IGOR VOROTINOV taken on April 19, 2013 and on May 12, 2013, in which IGOR is alive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs handled the extradition in this matter.
Assistant U.S. Attorneys David J. MacLaughlin and Matthew Ebert are prosecuting the case.
Defendant Information:
IGOR VOROTINOV, 54
No known address
Convicted:
- Mail Fraud, 1 count
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Eight Individuals Charged in Mille Lacs Heroin Trafficking ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging eight individuals with conspiracy to distribute heroin on the Mille Lacs Indian Reservation.
According to the ten-count indictment, from December 2017 through June 2018, TYRONE JAMES NELSON, 38, ROBERT DONTELL SYKES, 48, and DAVID LEE SNODDY, 36, RAMON FORD, 58, DEVONN ROSE MITCHELL, 23, KRISTIN RAE BOYD, 28, DUWAYNE IVAN SCHWENSEN, 26, and CHASE REED NICKABOINE, 20, knowingly conspired with each other to distribute more than 100 grams of heroin. The defendants are charged with conspiracy and heroin distribution.
“Here in Minnesota, and around the nation, our Native American communities have been disproportionately affected by heroin and opioid abuse. This is unacceptable. My office and our law enforcement partners remain aggressive in our approach to stopping those who infiltrate our communities with this poison,” said U.S. Attorney Erica MacDonald.
“The Band is very grateful for the critical assistance provided by Bureau of Indian Affairs and federal law enforcement officers, and the U.S. Attorney,” said Mille Lacs Band Chief Executive Melanie Benjamin. “I would especially like to thank our Mille Lacs Tribal Police force. They have done outstanding work in leading this effort with our federal partners to address the drug epidemic on our Reservation.”
“The Bureau of Indian Affairs Division of Drug Enforcement (BIA DDE) was instrumental in the investigation,” said Mille Lacs Band Chief of Police Sara Rice. “We worked hand-in-hand with the BIA DDE drug agents. They were incorporated into our department throughout the entire process of investigation during this case. Several other agencies assisted in the lengthy investigation of this conspiracy case. Thank you to the investigators from Mille Lacs, Crow Wing and Sherburne county sheriff’s offices, Lakes Area Drug Investigation Division, Paul Bunyan Drug Task Force, Red Lake Tribal and Minneapolis police departments, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Agency, Minnesota Department of Corrections the U.S. Attorney’s Office and the U.S. Marshal’s Office.”
This case is the result of an investigation led by the Bureau of Indian Affairs and the Mille Lacs Tribal Police Department.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
Defendant Information:
TYRONE JAMES NELSON, 38
City of residence unknown
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 2 counts
ROBERT DONTELL SYKES, 48
City of residence unknown
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 2 counts
- Possession with intent to distribute heroin, 1 count
DAVID LEE SNODDY, 36
Minneapolis, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 2 counts
RAMON FORD, 58
Brooklyn Park, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 1 count
- Possession with intent to distribute heroin, 1 count
DEVONN ROSE MITCHELL, 23
Onamia, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 1 count
KRISTIN RAE BOYD, 28
Onamia, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 2 counts
- Possession with intent to distribute heroin, 1 count
DUWAYNE IVAN SCHWENSEN, 26
Onamia, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 1 count
CHASE REED NICKABOINE, 20
Onamia, Minn.
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Announces Statewide Funding Opportunity to Reduce Violent CrimeRead the Press Release
United States Attorney Erica H. MacDonald today announced the release of a district-wide Request for Proposals (RFP) under its Project Safe Neighborhoods (PSN) initiative, the centerpiece of the Department’s violent crime reduction strategy. PSN is a nationwide initiative, led by U.S. Attorneys, which brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
“More than $400,000 will be awarded to jurisdictions throughout the District of Minnesota to develop and implement tailored solutions to address the local violent crime, gang, and substance abuse issues plaguing their communities,” said U.S. Attorney Erica MacDonald. “Leveraging resources such as these will bring us closer to our shared goal of reducing violent crime and making our communities safer for everyone.”
Approximately $413,791 in funding is now available to support locally developed, comprehensive violence reduction partnerships. Eligible applicants include nonprofit agencies and/or local units of government including cities, counties, townships, and tribal governments. The funding is administered by the Minnesota Department of Public Safety’s Office of Justice Programs and will be awarded through a competitive process. The RFP is available here: https://dps.mn.gov/divisions/ojp/grants/Pages/default.aspx. Applications will be accepted until midnight (CDT), July 15, 2019.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Shakopee Felon Sentenced to 248 Months in Prison for Methamphetamine Distribution, Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MILES DENZEL RAYMOND LEWIS, 26, to 248 months in prison for methamphetamine distribution and illegal possession of three firearms. LEWIS, who pleaded guilty on December 13, 2018, was sentenced today before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.
According to his guilty plea and documents filed in court, on May 1, 2018, LEWIS sold methamphetamine to a confidential informant from his home in Shakopee, Minnesota. Upon execution of a search warrant at LEWIS’s residence, law enforcement recovered approximately 2,238 grams of methamphetamine, 338 grams of cocaine, 1,564 grams of marijuana, three firearms, two digital scales, a money counting machine, numerous rounds of ammunition, and $88,221 in cash. When law enforcement arrested LEWIS on May 18, 2018, he was found to be in possession of another $49,831 in cash.
This case was the result of an investigation conducted by Homeland Security Investigations, the Ramsey County Violent Crime Enforcement Team, the Shakopee Police Department, and the Saint Paul Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
This case was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
Defendant Information:
MILES DENZEL RAYMOND LEWIS, 26
Shakopee, Minn.
Convicted:
- Possession with the intent to distribute methamphetamine, 1 count
- Possession of firearms in furtherance of drug trafficking crimes, 1 count
Sentenced:
- 248 months in prison
- Five years of supervised release
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U.S. Attorney's Office and DEA Encourage Minnesotans to Take Part in National Prescription Drug Take Back DayRead the Press Release
United States Attorney Erica H. MacDonald and DEA Special Agent in Charge Richard Salter Jr. announced that the DEA and its national, tribal and community partners will host the 17th National Prescription Drug Take Back Day, Saturday, April 27, from 10 a.m. to 2 p.m., at more 6,000 sites nationwide, including 116 locations in Minnesota. To date, 48 counties in Minnesota will host drop-off locations, including sites on the Bois Fort, Leech Lake, Lower Sioux, Upper Sioux and White Earth Reservations. Individuals can dispose of expired, unused and unwanted prescription medications. This service is free and anonymous, however DEA cannot accept liquids, needles or other sharp objects.
Every year, America is losing more than 70,000 people to drug overdose deaths. This is the equivalent of the capacity of Minnesota’s U.S. Bank Stadium with additional space needed for 4,000 more people. In 2017, an estimated 3.2 million Americans age 12 or older reported misusing prescription pain relievers within the last month, making prescription opioids the second-most abused drug after marijuana in the United States. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet.
“In Minnesota, 2,503 people died of opioid overdose between 2014 and 2017,” DEA Omaha Division Special Agent in Charge Richard Salter Jr., said. “These were mothers, fathers, children, friends and neighbors in our communities who didn’t need to die. National Prescription Drug Take Back Day is a way in which members of our communities can do their part to prevent the next overdose death by cleaning out their cabinets and those of their loves ones and getting rid of unused, unwanted and expired medications that have the potential for abuse.”
“I encourage Minnesotans to take an active role in ending the opioid epidemic by safely and responsibly disposing of their unused prescription medications. This one small step toward prevention could save the life of a friend, neighbor or loved one,” said U.S. Attorney Erica MacDonald.
Now in its ninth year, the National Prescription Drug Take Back Day initiative continues to remove high amounts of opioids and other medicines from homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. Since the first National Prescription Drug Take Back Day held in 2010, DEA has collected nearly 11 million pounds of medications.
To locate a DEA Take Back site, visit www.DEATakeBack.com or call 1-800-882-9539.Visit http://www.deatakeback.com to find a drop off site near you.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Maplewood Dentist to Pay $75,000 for Illegally Prescribing Opioids in Violation of the Controlled Substances ActRead the Press Release
United States Attorney Erica MacDonald today announced that Maplewood dentist DR. JERRY KENT BRUNSOMAN and his clinic INSTITUTE OF FACIAL SURGERY ST. PAUL, PLLC, d/b/a/ IDEALSKIN LASER REJUVENATION CENTER has agreed to pay $75,000 in civil penalties for allegedly issuing illegitimate prescriptions for opioid medications and repeatedly failing to comply with the recordkeeping requirements of the Controlled Substances Act.
According to the allegations in the complaint, BRUNSOMAN unlawfully issued multiple prescriptions for Schedule II controlled substances, namely, oxycodone and hydrocodone, without a legitimate medical purpose. The complaint further alleges that BRUNSOMAN failed to keep complete and accurate records regarding the receipt and dispensing of controlled substances used at his clinic. Congress enacted the recordkeeping and prescribing requirements to prevent the diversion of controlled substances for illegal purposes. As a result of BRUNSOMAN’S alleged actions, hundreds of doses of controlled substances went unaccounted for and are presumed to have been diverted for illicit purposes.
“Prescription drug abuse is a very real threat to the health and safety of our community. Doctors and medical professionals have a unique responsibility in preventing these dangerous drugs from falling into the wrong hands,” said U.S. Attorney Erica MacDonald. “The United States Attorney’s Office and our partners at the DEA are committed to pursuing those who divert prescription opioids in violation of the Controlled Substances Act.”
Prior to the federal civil suit, the Minnesota Board of Dentistry conducted an independent investigation that resulted in a public discipline order. The Board required BRUNSOMAN to voluntarily surrender his license to practice dentistry and his DEA registration to prescribe controlled substances. BRUNSOMAN is no longer practicing dentistry in Minnesota.
“Communities rely on doctors to help treat and improve their quality of life,” DEA Omaha Division Diversion Program Manager William Stockman said. “Doctors are held to a certain standard and are not expected to disregard controlled substance laws and regulations. When doctors disregard laws, they allow pharmaceutical drugs to be illegally channeled into our community and contribute to increased drug abuse. The DEA continues to fight the opioid crisis by working alongside the USAO and the Minnesota state boards.”
This case was investigated by the Diversion Group of the Drug Enforcement Administration, Minneapolis-St. Paul District Office and handled by the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office for the District of Minnesota, with cooperation from the Minnesota State Board of Dentistry.
The case is captioned United States of America v. Jerry Kent Brunsoman, Institute of Facial Surgery St. Paul, PLLC, d/b/a/ IdealSkin Laser Rejuvenation Center, Civil No. 18-CV-2172 (JRT/BRT). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States Files Complaint Seeking Forfeiture of Thousands “Fashion Dolls” That Infringe on Mattel’s “Barbie” CopyrightRead the Press Release
United States Attorney Erica MacDonald today announced the filing of a civil forfeiture complaint seeking to forfeit and recover approximately 21,852 fashion dolls that infringe a registered copyright owned by Mattel, Inc.
As alleged in the forfeiture complaint, on September 27, 2017, a shipping container aboard a Canadian National Railway train arrived into Ranier, Minnesota. The importer, Greenbrier International Inc. d/b/a Dollar Tree Inc., and Dollar Tree Distribution (“Greenbrier”) listed the contents of the shipping container as “Other Toys” on its manifest. U.S. Customs and Border Protection (CBP) officers examined the container and discovered the 21,852 toy “fashion dolls.” Representatives of Mattel reviewed photographs of the fashion dolls and confirmed that they were unauthorized copies that infringed the “CEO Barbie” doll head copyright owned by Mattel, Inc. Specifically, Mattel identified several features of the copyrighted CEO Barbie head sculpt infringed by the fashion dolls, including the shape of the mouth, nose and jaw.
As alleged in the forfeiture complaint, in 2016, Greenbrier attempted to import 13,296 Mermaid fashion dolls that were seized at the border by CBP for infringement of the CEO Barbie head sculpt. In both instances, the counterfeit dolls originated from the same exporter/shipper located in Hong Kong.
This case is being handled by the Asset Forfeiture Unit of the U.S. Attorney’s Office for the District of Minnesota, and was investigated by U.S. Customs and Border Protection.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Ponemah Man Sentenced to 100 Months in Prison for Possessing A Sawed-Off ShotgunRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of RANDALL DEAN JONES, 28, to 100 months in prison for illegally possessing a sawed-off shotgun. JONES, who pleaded guilty on December 20, 2018, to one count of possession of an unregistered firearm, was sentenced today before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on August 1, 2018, law enforcement officers were dispatched to an apartment complex located in Thief River Falls, following a report of a fight. When officers arrived, JONES was yelling and banging on an apartment door. After detaining JONES, officers located an Iver Johnson Arms and Cycle Works, Excel model, 20-gauge shotgun with a shortened barrel in the apartment hallway beneath a sweatshirt on the floor. JONES admitted to possessing the unregistered, modified shotgun. JONES has two prior felony convictions, including aggravated assault in Cass County, North Dakota and assault with a dangerous weapon in U.S. District Court in the District of Minnesota, which prohibit him from possessing firearms.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Thief River Falls Police Department, the Pennington County Sheriff’s Office, and the Red Lake Police Department.
Assistant United States Attorney Deidre Y. Aanstad prosecuted the case.
Defendant Information:
RANDALL DEAN JONES, 28
Ponemah, Minn.
Convicted:
- Possession of an unregistered firearm, 1 count
Sentenced:
- 100 months in prison
- Three years of supervised release
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Minneapolis Man Pleads Guilty in Connection with the State's Largest Methamphetamine SeizureRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of FERNANDO RAMOS-MEZA, 34, for conspiring to distribute approximately 191 pounds of methamphetamine. RAMOS-MEZA and co-conspirators PETER MARTIN, 34, JAVIER LOPEZ-LOPEZ, 47, and JUAN DANIEL VALDEZ-MENDOZA, 24, were indicted on November 7, 2018. RAMOS-MEZA pleaded guilty earlier today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. He is scheduled to be sentenced on August 20, 2019.
“The quantities of methamphetamine coming into our state continue to rise and the destruction that comes with it cannot be understated,” said U.S. Attorney Erica MacDonald. “I applaud the work of the Cannon River Drug Task Force in taking nearly 200 pounds of methamphetamine off the street and out of our community.”
According to the defendant’s guilty plea, on September 11, 2018, law enforcement officers with the Cannon River Drug Task Force executed a search warrant at RAMOS-MEZA’s residence in north Minneapolis. During the search of the residence, officers located several items of contraband, including a 12-gauge sawed-off pump shotgun, and approximately 191 pounds of methamphetamine (with packaging).
This case is the result of an investigation conducted by the Cannon River Drug Task Force, Homeland Security Investigations, and the Minneapolis Police Department.
Assistant United States Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
FERNANDO RAMOS-MEZA, 34
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
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Information for Victims of USA v. Hansmeier, Et Al. Copyright Fraud SchemeRead the Press Release
In the case of United States v. Hansmeier, et al., defendants PAUL R. HANSMEIER and JOHN L. STEELE will be sentenced on June 4, 2019, before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. HANSMEIER and STEELE were charged and convicted of orchestrating a multi-million dollar fraud scheme in which they obtained payments from victims to settle sham pornography film copyright infringement lawsuits. At the sentencing hearing, the Court may, but is not required to, order HANSMEIER and STEELE to pay restitution to the victims of their scheme.
If you believe that you are a victim of this scheme, and actually paid money to the entities involved in the case (including, but not limited to, Steele Hansmeier Law, Prenda Law, Alpha Law, Anti-Piracy Group, AF Holdings, Ingenuity 13, Guava LLC, Livewire, LW Systems), please visit https://hansmeier.usaocrimevictims.org/ to obtain information about how to make a claim for restitution in this case. Victim information will not be disclosed to the public.
The case is captioned United States v. Hansmeier, et al., Criminal No. 16-cr-00334 (JNE).
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U.S. Attorney’s Office Honors Law Enforcement Officials and Community Leaders in Inaugural Award Ceremony for Excellence in the Pursuit of JusticeRead the Press Release
United States Attorney Erica H. MacDonald will be presenting awards today to law enforcement officials and community leaders at the inaugural United States Attorney’s Office Excellence in the Pursuit of Justice Awards Ceremony. Thirty-six individuals will be honored for their outstanding work and selfless contributions to the mission of the United States Attorney’s Office – the pursuit of truth and justice.
“This group of dedicated professionals work tirelessly for the betterment of our community in pursuit of a common goal – the desire to make our community a safer and more just place to live, work, love and play,” said U.S. Attorney Erica MacDonald. “Today, we honor them by publicly celebrating their achievements and recognizing the sacrifices that they and their families make in the name of justice.”
Among the honorees include Robert Small, Executive Director of the Minnesota County Attorneys Association, who has dedicated his life to public service. Mr. Small held various positions with the United States Attorney’s Office, including Acting U.S. Attorney, and served honorably as a Hennepin County Judge until retirement, at which time he continued his service by taking on the responsibility of Executive Director of the Minnesota County Attorneys Association. U.S. Attorney MacDonald described Mr. Small as, “the quintessential public servant, a true leader who sets a shining example for all to follow.”
The honorees at today’s ceremony are members of the following agencies and organizations:
- Minnesota Bureau of Criminal Apprehension
- Beltrami County Sheriff’s Office
- Federal Bureau of Investigation
- Minneapolis Police Department
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- NorthPoint Health & Wellness, Inc.
- City of Minneapolis
- Hennepin County
- United States Postal Inspection Service
- Minnesota Commerce Fraud Bureau
- Internal Revenue Service Criminal Investigation
- Minnesota County Attorneys Association
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Defendants Enter Guilty Pleas in Red Lake Heroin Conspiracy That Resulted in the Shooting Deaths of Two IndividualsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of BRYAN BOARDMAN, a/k/a “Boon,” 25, for his role in a heroin distribution conspiracy that resulted in the shooting deaths of two individuals. FRANKLIN JACKSON, a/k/a “Frankie,” 23, also pleaded guilty on April 18, 2019, to one count of conspiracy to distribute heroin. Both defendants entered their guilty pleas before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
According to the defendants’ guilty pleas and documents filed in court, between October 1, 2018, and October 21, 2018, BOARDMAN, JACKSON, and a third co-defendant KRISTOPHER SULLIVAN, 24, conspired with each other to distribute heroin on the Red Lake Indian Reservation. In the early morning hours of October 21, 2018, BOARDMAN, JACKSON, and SULLIVAN met in a trailer on the Red Lake Indian Reservation belonging to JACKSON’s girlfriend. The three defendants made preparations to sell heroin later that day, including contacting potential customers to let them know that heroin was available for sale at the trailer. The defendants’ drug trafficking activities were interrupted at approximately 6:30 a.m. that morning when three armed, masked men broke into the trailer in an apparent armed robbery. BOARDMAN drew a 9 millimeter pistol and fired eight shots, killing two of the intruders. The third intruder was wounded in the leg by the gunfire and fled from the scene.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
BRYAN BOARDMAN, a/k/a “Boon,” 25
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
- Using and carrying a firearm during a drug trafficking crime, 1 count
FRANKLIN JACKSON, a/k/a “Frankie,” 23
Unknown
Convicted:
- Conspiracy to distribute heroin, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Civil Complaint Filed Against Orono Business Man to Recover $2.7 Million in Assets That Were Part of A Tax Fraud SchemeRead the Press Release
United States Attorney Erica MacDonald today announced the filing of a civil complaint against SCOTT PHILLIP FLYNN, SHAWN M. GRIMM, WATERTOWN PROPERTY, LLC, and DESERT INN HOLDINGS, LLLP, seeking to liquidate millions in assets purchased with income that was part of FLYNN’s tax fraud scheme.
In January 2019, FLYNN was convicted of a multi-million dollar tax fraud scheme and, as part of his sentence, the Court ordered FLYNN to pay more than $5 million in restitution. FLYNN also owes over $652,000 in restitution in connection with his previous conviction for wire fraud and securities fraud in 1999. From July 2007 to January 2019, FLYNN resided in a $2.7 million mansion located in Orono, Minnesota, which FLYNN admittedly purchased with income that was part of his tax fraud scheme.
As stated in the complaint, the United States alleges that FLYNN has used multiple entities under his control, including WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP, to protect the equity in the Orono mansion from his creditors. GRIMM, FLYNN’s sister, is listed as a manager and/or general partner of WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP, the purported owners of the Orono mansion. The United States alleges that WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP do not function as operational, solvent businesses but, instead, serve as alter egos of FLYNN intended to enable him to protect the equity in the Orono mansion and avoid his creditors, including the United States.
The United States is seeking a declaratory judgment that WATERTOWN PROPERTY, LLC and DESERT INN HOLDINGS, LLLP, the purported owners of the Orono mansion, are alter egos of FLYNN. The United States is also seeking to liquidate the assets held by those entities, namely the Orono mansion, so that the proceeds can be applied to FLYNN’s restitution obligations.
This case is being handled by the Financial Litigation Unit of the U.S. Attorney’s Office for the District of Minnesota, and was investigated by the Criminal Investigation Division of the IRS.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600