District of Minnesota
Press releases recorded for this federal judicial district.
Richfield Man Sentenced to Fourteen Years in Federal Prison for Violent Armed Robbery of Red and White TaxicabRead the Press Release
United States Attorney Erica H. MacDonald today announced sentencing of MARIO LUIS JONES, 27, for the violent armed robbery of a Red & White taxicab in Minneapolis, Minnesota. JONES pleaded guilty on May 8, 2018, and was sentenced to 168 months imprisonment, on December 3, 2018, by Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
“The defendant put many lives in danger. He has a lengthy criminal record, and chose to commit this offense while on probation for a previous sexual conduct offense,” said United States Attorney Erica H. MacDonald. “I am grateful that the Court recognized his violent conduct and sentenced him accordingly.”
“There is no room for this kind of behavior in our communities, and this sentence is fitting for Jones’ inexcusable acts,” said Acting Special Agent in Charge Kirk Howard of the ATF St. Paul Field Division. “The prevalence of firearm-related crime is an ongoing issue, and ATF, with the help of our state and local partners, will continue to focus on bringing justice to the victims of violent offenders.”
As admitted by the defendant in his guilty plea and in other documents filed in court, on November 27, 2017, JONES got into a Red & White taxicab near the 2800 block of Pillsbury Avenue South in Minneapolis. JONES told the taxicab driver to take him to 5773 Bossen Terrace in Minneapolis, however, when they arrived, JONES told the driver that it was the wrong address. JONES then pulled out a .40 caliber semi-automatic pistol with a laser scope, placed the barrel near the driver’s head, and demanded that the driver stop the car and open the trunk. JONES got out of the taxi and walked to the trunk area. Fearing that JONES was going to kill him, the driver ran off. JONES fired the firearm and then drove off in the taxicab.
As admitted by the defendant in his guilty plea and in other documents filed in court, JONES was located driving southbound on Interstate 35 in the Lakeville area. When law enforcement officers approached JONES, he sped off at speeds exceeding 100 miles per hour. JONES eventually crashed into a swampy ditch and was later apprehended and arrested.
U.S. Attorney MacDonald thanked the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Lakeville Police Department who investigated this case and Assistant U.S. Attorney Thomas M. Hollenhorst who prosecuted the case.
Defendant Information:
MARIO LUIS JONES, 27
Richfield, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and discharging a firearm during and in relation to a crime of violence, 1 count
Sentenced:
- 168 months imprisonment (terms served consecutively)
- 5 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Four Bemidji Residents Sentenced for Their Roles in Home Invasion on Red Lake ReservationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DEREK JON PADDY, 22, KEVIN ROBERTSON, 32, CHERAI MICHELLE CLARK, 26, and SHANISE FRANCES OSTLUND, 29, for their roles in a burglary on the Red Lake Reservation in the early morning hours of November 24, 2017.
PADDY was sentenced to 29 months imprisonment, ROBERTSON was sentenced to 51 months imprisonment, CLARK was sentenced to 21 months imprisonment, and OSTLUND was sentenced to 3 years probation. Judge Susan Richard Nelson sentenced the defendants on December 3, 2018, in U.S. District Court, in Duluth, Minnesota.
OSTLUND and ROBERTSON were found guilty of burglary in the second degree and of robbery, following a jury trial, before on Judge Susan Richard Nelson in U.S. District Court in Duluth, Minnesota, on September 12, 2018. PADDY and CLARK each pleaded guilty to one count of burglary in the second degree, on August 31, 2018 and September 10, 2018, respectively, before Judge Susan Richard Nelson.
United States Attorney MacDonald said, “Defendants Paddy and Robertson are repeat violent offenders, who chose to continue to commit crime. My office and our law enforcement partners are committed to ensuring all communities have the opportunity to be safe.”
As proven at trial, in the early morning hours of November 24, 2017, following a brawl at a local Walmart store, OSTLUND, ROBERTSON, PADDY and CLARK drove together to the victim’s residence with intentions to confront the victim and steal their property. When the defendants arrived, PADDY and CLARK kicked in the front door and entered the residence along with OSTLUND and ROBERTSON. The defendants expected to find the victim inside the residence; however, the victim escaped by jumping out of a window. The defendants stole various items from the residence before leaving the property.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the Red Lake Police Department and the Bemidji Police Department.
Assistant U.S. Attorney Deidre A. Aanstad and former Assistant U.S. Attorney Clifford B. Wardlaw tried the case.
Defendant Information:
Derek Jon Paddy, 22
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
Sentenced:
- 29 months imprisonment
- 3 years supervised release
Kevin Robertson, 32
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
Sentenced:
- 51 months imprisonment
- 3 years supervised release
Cherai Michelle Clark, 26
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
Sentenced:
- 21 months imprisonment
- 3 years supervised release
Shanise Frances Ostlund, 29
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
Sentenced:
- 3 years probation
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Dalton Man Charged with Mail FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging JEROME ROBERT HENNESSEY, 56, with one count of mail fraud. HENNESSEY surrendered himself and made his initial appearance today before Magistrate Judge Katherine Menendez, in U.S. District Court in Minneapolis, Minnesota.
According to the criminal complaint and a law enforcement affidavit, from 2003 through at least September of 2018, HENNESSEY defrauded the Ashby Farmers’ Co-Operative Elevator Company (co-op) in Ashby, Minnesota, for his own expenses.
According to the affidavit, on September 12, 2018, the co-op contacted local law enforcement regarding concerns over payments that HENNESSEY made to himself or for his own personal expenses. HENNESSEY was serving as the co-ops’ general manager. The co-op discovered multiple checks written by HENNESSEY to himself for over $40,000 and including a check for $135,000.
According to the affidavit, among the payments in question included over $1 million in payments to HENNESSEY’s personal Cabela’s Visa Card and hundreds of thousands of dollars for various hunting trips, including international big game hunting safaris, and taxidermy services. For example, investigators found at least twelve checks totaling more than $400,000 for items such as “South Africa Mounts” and “Zimbabwe Double Kudu Pedestals” and for a “Zebra Pedestal.”
The criminal complaint and law enforcement affidavit allege that on January 27, 2017, HENNESSEY mailed a check via U.S. mail in the amount of $34,166.67 from the co-ops’ account for a partial payment toward the purchase of hunting property in Kanabec County.
According to the affidavit, after the co-op identified the suspicious payments, they requested HENNESSEY meet with them on the morning of September 10, 2018. HENNESSEY did not show up for the meeting and instead met a friend who ultimately drove HENNESSEY to Des Moines, Iowa. Two of HENNESSEY’s acquaintances who were interviewed by law enforcement indicated that HENNESSEY told them that he taken money from his employer and was in a lot of trouble.
This case is 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 is prosecuting the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Charged:
- Mail Fraud, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Minneapolis Felon Sentenced to 71 Months in Prison for Role in 2017 Bar ShootingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CEDRIC LAMONT BERRY, JR, a/k/a “Ced,” 24, to 71 months in federal prison. BERRY was sentenced on November 28, 2018, by Senior Judge Ann D. Montgomery, in U.S. District Court in Minneapolis, Minnesota. BERRY pleaded guilty on July 19, 2018, to one count of felon in possession of ammunition.
Earlier this month, BERRY’s co-defendant CORTEZ MAURICE CRUMBLE, a/k/a “Bruiser,” 30, was found guilty following a jury trial before Senior Judge Montgomery in U.S. District Court, in Minneapolis, Minnesota. A sentencing hearing for CRUMBLE has been set for March 21, 2019.
“The defendant has a violent criminal history and has consistently been shown to be a danger to the community,” said United States Attorney Erica H. MacDonald. “He and his co-defendant brazenly shot at a man fleeing in a car in a public parking lot, posing a substantial danger to human life. My commitment to Minnesotans is to use every tool and law enforcement partnership we have to keep our communities safe.”
“These individuals repeatedly disregarded both the law and the safety of others,” said ATF Special Agent in Charge Kurt Thielhorn of the Saint Paul Field Division. “We’re glad to get them out of the community they victimized and this case is part of our effort to reduce violent crime in Minneapolis. Our relationship with the Minneapolis Police Department and the Minnesota Bureau of Criminal Apprehension led to the success in investigating these violent offenders and we are thankful for their involvement in this case.”
According to documents submitted to the court, including BERRY’s guilty plea, and evidence admitted at CRUMBLE’s trial, in the early morning hours of November 23, 2017, CRUMBLE and BERRY were at the Broadway Pub in Minneapolis when BERRY and other individuals got into a fight inside the bar. Security personnel broke up the fight, however; video footage captured BERRY as he ran out of the bar and appeared to retrieve something from a vehicle in the parking lot. BERRY was then seen running back into the bar with a firearm in his hand. Shortly afterward, CRUMBLE was captured on video outside the bar shooting at a vehicle as it sped out of the parking lot. BERRY was also captured on video appearing to draw a firearm from his waistband and firing at the vehicle. Law enforcement officers found 20 .40 caliber discharged cartridge casings in the area where the shooting took place.
Both CRUMBLE and BERRY have prior felony convictions prohibiting them from legally possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Thomas Calhoun-Lopez tried the case.
Defendant Information:
CEDRIC LAMONT BERRY, JR, a/k/a “Ced,” 24 Minneapolis, Minn.
Convicted:
- Felon in possession of ammunition, 1 count
Sentenced:
- 71 months in prison
- 3 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minnesota Temporary Agency Owner Sentenced to Three Years in Prison for Failing to Pay TaxesRead the Press Release
United States Attorney Erica MacDonald today announced the sentencing of MAI NHIA VUE, 47, to 38 months in federal prison for failing to pay payroll taxes. VUE pleaded guilty on May 16, 2018, to one count of willful failure to pay payroll taxes and was sentenced on November 27, 2018, by Judge Wilhelmina Wright, in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, VUE owned and operated Five Star Workforce Solutions (Five Star), which provided temporary contract employees to businesses in Minnesota. As part of Five Star’s contracts with its client businesses, Five Star was responsible for collecting and paying the payroll taxes from the employees, which included the federal withholding taxes, social security, and Medicare withholdings.
According to the defendant’s guilty plea and documents filed in court, during the tax years of 2014, 2015, and 2016, VUE created two sets of accounting books and paid payroll taxes for some employees but did not pay any payroll taxes for other employees, despite charging Five Star clients consistent rates between the two sets of employees. Additionally, VUE did not pay the employer’s portion of social security and Medicare taxes.
According to documents filed in court, VUE failed to pay nearly $2 million under this scheme, which should have gone to the IRS. VUE spent hundreds of thousands of dollars on luxury travel, gambling, gold, and the construction and furnishing of a new home.
United States Attorney Erica H. MacDonald thanked the special agents of the IRS-Criminal Investigation Division who investigated the case and Assistant U.S. Attorney Robert Lewis, who prosecuted the case.
Defendant Information:
MAI NHIA VUE, 47
Lake Elmo, Minn.
Convicted:
- Willful Failure To Pay Payroll Taxes, 1 count
Sentenced:
- 38 months incarceration
- 3 years supervised release
- $1,820,331 in restitution to the IRS
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minnesota Man Found Alive After Allegedly Faking His Death for Insurance ClaimRead the Press Release
United States Attorney Erica H. MacDonald today announced the arrest and extradition of IGOR VOROTINOV, 54. The defendant made his initial appearance on November 19, 2018, before United States Magistrate Judge Kate Menendez, in U.S. District Court, in Minneapolis, Minnesota. IGOR VOROTINOV was federally indicted on February 19, 2015, on one count of mail fraud. [1] He was arrested on November 14, 2018 in the Republic of Moldova, and extradited to the United States, arriving on United States soil on November 17, 2018.
According to the indictment 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 indictment and documents filed in court, on October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as IGOR VOROTINOV. IRINA VOROTINOV traveled to Moldova to identify the body. After positively identifying the corpse as IGOR, IRINA obtained a death certificate from Moldovan authorities and had the corpse cremated. Returning to the United States with the death certificate and an urn with ashes claiming to be that of IGOR’s remains, IRINA submitted the death claim to Mutual of Omaha for the $2 million policy. A funeral was held where the urn was placed in a niche at Lakewood Cemetery in Minneapolis.
According to the indictment and documents filed in court, on March 23, 2012, Mutual of Omaha sent a proceeds check in the amount of $2,048,414.09, via United States mail, to IRINA’S 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 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.
On May 16, 2016, IRINA VOROTINOV pleaded guilty to one count of mail fraud and one count of engaging in a monetary transaction in criminally derived property. On November 15, 2016, IRINA VOROTINOV was sentenced to 37 months in federal prison, by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis. She is currently serving her sentence.
ALKON VOROTINOV pleaded guilty on March 24, 2015, to one count of misprision of a felony. On September 27, 2016, ALKON was sentenced to three years of probation and $2,056,554.09 in restitution (to be paid jointly) by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis.
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. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
Igor Vorotinov, 54
No Known Address
Charged:
- Mail Fraud, 1 count
Irina Vorotinov, 51
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Engaging in a Monetary Transaction in Criminally Derived Property, 1 count
Sentenced:
- Mail Fraud, 37 months (served concurrently)
- Engaging in a Monetary Transaction in Criminally Derived Property, 37 months (served concurrently)
- 2 years each, supervised release (served concurrently)
- $2,056,554 in restitution to be paid jointly
Alkon Vorotinov, 28
Plymouth, Minn.
Convicted:
- Misprision of a Felony, 1 count
Sentenced:
- 2 years of probation
- $2,056,554 in restitution to be paid jointly
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Lakeville Man Sentenced to 88 Months in Prison for Precious Metals Investment SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of DAVID THOMAS ROUGIER, 46, to 88 months in prison for one count of wire fraud. ROUGIER, who pleaded guilty on July 18, 2018, was sentenced on November 19, 2018, before Chief Judge John R. Tunheim, in U.S. District Court in Minneapolis, Minnesota.
"The defendant callously preyed on several victims who were at or nearing retirement age – a population that not only lives on a tight budget, but is also trusting of those who claim to help them live out their golden years with security. David Rougier abused that trust and we are satisfied that today's sentence ensures that he will not only pay for his crimes, but will not be able to harm again," said FBI Special Agent in Charge Jill Sanborn. "The men and women of the FBI will continue doggedly go after those who lie, cheat and swindle their way into stealing the hard earned savings of our senior citizens."
According to the defendant’s guilty plea and documents filed in court, between November 2010 and June 2017, more than a dozen individuals paid ROUGIER approximately $835,000 based upon his promises that he was using their money to buy gold and silver and, in some cases, that their investments were protected through guaranteed buyback contracts. ROUGIER promised his victim-investors that precious metals would be a safe investment and that the value would increase every year. Instead of purchasing the gold and silver, ROUGIER spent hundreds of thousands of dollars of victims’ money on shopping trips, entertainment, travel, strip clubs and other personal expenses.
According to the defendant’s guilty plea and documents filed in court, ROUGIER also collected yearly fees for “storage” and “management” from his victim-investors, purportedly to store and manage the gold and silver he claimed to have purchased on their behalf. Additionally, between 2013 and 2014, ROUGIER began telling his victim-investors that he had found a company, which he identified as “TAUG Limited” (“TAUG”) that would guarantee to purchase their gold and silver for a set price on a designated future date, making their investment virtually risk free. ROUGIER presented some of his victim-investors with a purported contract between them and TAUG, under which they were charged between $1,000 and $2,000 in order to avail themselves of this guaranteed future purchase price. These funds were paid directly to ROUGIER, who spent them on personal expenditures.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
Defendant information:
DAVID THOMAS ROUGIER, 46
Lakeville, Minn.
Convicted:
- Wire Fraud, 1 count
Sentenced:
- 88 months in prison
- 3 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Repeat Offender Sentenced to 46 Months in Federal Prison for Domestic ViolenceRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of LANDON CONAN KINGBIRD, 34, to 46 months in prison for one count of domestic assault by a habitual offender. KINGBIRD, who pleaded guilty on March 26, 2018, was sentenced on November 14, 2018, before Judge Joan N. Ericksen, in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on June 14, 2017, a female victim, Victim A, was taken to the Red Lake Indian Health Services Hospital, suffering from a stab wound to the leg and laceration on her forehead. Upon meeting with responding officers, Victim A informed officers that while sitting in her car, KINGBIRD stabbed her in her leg and struck her in the face splitting her forehand and causing her to receive stiches and medical attention. KINGBIRD denied stabbing Victim A, a former domestic partner, but admitted striking her in the face.
Before this assault on Victim A, KINGBIRD had been convicted on at least two prior occasions of serious violent felonies against an intimate partner. Once, in 2007 in Roseau County District Court, for 3rd Degree Assault against his then-girlfriend, and in April, 2013, in Beltrami County District Court for Domestic Assault – By Strangulation against Victim A.
The case was investigated by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Sarah Hudleston prosecuted the case.
Defendant Information:
Landon Conan Kingbird, 34
Red Lake, Minn.
Convicted:
- Domestic Assault By An Habitual Offender, 1 count
Sentenced:
- 46 months
- 3 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tohono O’Odham Nation Man Charged with Multiple Counts of AssaultRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ADRIAN JOSEPH VALDEZ, 33, with two counts of assault with a dangerous weapon and two counts of assault resulting in serious bodily injury.[1] VALDEZ was previously charged via federal compliant on October 18, 2018. He made his initial appearance before Magistrate Judge Jon T. Huseby in U.S. District Court on October 24, 2018.
According to documents filed with the court, including a law enforcement affidavit, on August 10, 2018, law enforcement responded to a call from a female who reported an ongoing incident at a residence on the Red Lake Indian Reservation. Responding officers found a man, who later identified himself as ADRIAN JOSEPH VALDEZ, walking down the driveway. VALDEZ, who had blood on his arm, stated, “I stabbed them, handcuff me and take me to jail! I’m a bad guy, take me to jail.” VALDEZ was taken into custody at the Red Lake Detention Center.
According to documents filed with the court, including a law enforcement affidavit, responding officers found two stabbing victims at the residence who were taken to the hospital. Witnesses reported that after drinking alcohol together, a disagreement turned into a physical fight, and VALDEZ began stabbing one of the victims. A second man who attempted to break up the fight also was stabbed by VALDEZ.
During a post-Miranda interview, VALDEZ admitted to getting into a fight and subsequently stabbing the two identified victims. VALDEZ is a member of the Tohono O’Odham Nation tribe located in Southwestern Arizona.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
This case is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
ADRIAN JOSEPH VALDEZ, 33
Tohono O’Odham Nation, Ariz.
Charges:
- Assault with a dangerous weapon, 2 counts
- Assault resulting in serious bodily injury, 2 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Red Lake Man Charged with Domestic ViolenceRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging DARWIN LEE LUSSIER, SR., 52, with assault with a dangerous weapon and assault resulting in serious bodily injury. LUSSIER was previously charged on October 30, 2018, via federal complaint.[1] LUSSIER made his initial appearance before Magistrate Judge Jon T. Huseby in U.S. District Court on October 31, 2018.
According to documents filed with the court, including a law enforcement affidavit, on October 8, 2018, law enforcement responded to calls from a female who reported being the victim of multiple ongoing violent attacks, including being clubbed in the head. The female reported that she was at the LUSSIER’s home and that he had fled.
According to documents filed with the court, including a law enforcement affidavit, responding officers brought the female to the hospital. Upon execution of a search warrant at LUSSIER’s residence, officers found LUSSIER hiding in the basement. Officers also found the spiked club, previously described by the victim.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
This case is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
DARWIN LEE LUSSIER, SR., 52,
Red Lake, Minn.
Charges:
- Assault with a dangerous weapon, 1 count
- Assault resulting in serious bodily injury, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Hennepin County Employee Indicted on Theft of Government FundsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ROBERT ANTHONY COLEMAN, 45, and YOLANDA YVETTE COLEMAN aka YOLANDA YVETTE PITTMAN, 50, with multiple counts related to the theft of more than $248,000 of government funds. ROBERT COLEMAN is also charged with two counts of false statements and an additional count of Social Security fraud. They will make their initial appearances in U.S. District Court at a later date. 1]
According to documents filed with the court, from least October 2010 through August of 2018, ROBERT COLEMAN and YOLANDA PITTMAN conspired to fraudulently obtain government funds and public assistance including, Section 8 rental housing assistance subsidies, Supplemental Nutrition Assistance Program (SNAP) benefits, and Medical Assistance benefits, by purposefully submitting false applications to the government entities responsible for implementing these programs.
Further, according to documents filed with the court, YOLANDA PITTMAN used her role as an employee of Hennepin County Human Services and Public Health Department to affect COLEMAN’S receipt of benefits and failed to note that she lived with ROBERT COLEMAN. PITTMAN also acted as COLEMAN’S Personal Care Attendant (PCA) for several years, with COLEMAN’S Medical Assistance benefits paying for these PCA services.
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 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.
Charges:
- Conspiracy, 1 count
- Theft of government funds- housing, SNAP, and Social Security Fraud, 1 count
- False statement, 2 counts
- Social Security Benefits Fraud, 1 count
YOLANDA YVETTE COLEMAN, aka YOLANDA YVETTE PITTMAN, 50
Minneapolis, Minn.
Charges:
- Conspiracy, 1 count
- Theft of government funds- housing, SNAP, and Social Security Fraud, 1 count
- Theft from a Program Receiving Federal Funds, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Shakopee Superintendent Pleads Guilty to Corruptly Soliciting A BribeRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of RODNEY KEITH THOMPSON, 53, for corruptly soliciting a bribe. THOMPSON entered his guilty plea earlier today, before Judge Susan Nelson in U.S. District Court in St. Paul, Minnesota. He was charged via felony information on November 13, 2018.
According to the defendant’s guilty plea and documents filed in court, THOMPSON used his position and authority as then Superintendent of the Shakopee School District, to obtain personal benefits from a company interested in being awarded contracts with the Shakopee School District. THOMPSON solicited home improvement projects, personal travel, and attendance at sporting events in exchange for contracts with the School District.
“Mr. Thompson was a trusted member of the Shakopee community. Parents, teachers, staff, and students trusted him to act with integrity to make the right decisions in the best interest of the Shakopee schools,” said United States Attorney Erica H. MacDonald. “He chose to violate that trust and act on what served his own interest. With his guilty plea today, I hope the Shakopee community has a sense of closure.”
"The defendant held a position of public trust with an obligation to act in the best interest of Shakopee schools, staff, and students he was responsible for," said FBI Special Agent in Charge Jill Sanborn. "Sadly, the defendant chose to violate this sacred trust by making the conscious decision to steal and deprive teachers of the very resources necessary to provide a quality education. The FBI remains committed to working with our law enforcement partners to investigate public corruption such as this and bring those responsible to justice."
THOMPSON’s sentencing has been scheduled for March 29, 2019, before Judge Susan Nelson, in U.S. District Court in St. Paul.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
RODNEY KEITH THOMPSON, 53
Shakopee, Minn.
Convicted:
- Corrupt Solicitation of a Bribe, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Shakopee Superintendent Charged with Corruptly Soliciting A BribeRead the Press Release
United States Attorney Erica H. MacDonald today announced the filing of a felony information charging RODNEY KEITH THOMPSON, 53, with corruptly soliciting a bribe. [1] THOMPSON will make his initial appearance in U.S. District Court at a later date.
As alleged in the felony information, THOMPSON used his position and authority as then Superintendent of the Shakopee School District, to obtain personal benefits from a company interested in being awarded contracts with the Shakopee School District. Namely, THOMPSON solicited home improvement projects, personal travel, and attendance at sporting events in exchange for contracts with the School District.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
RODNEY KEITH THOMPSON, 53
Shakopee, Minn.
Charges:
- Corrupt Solicitation of a Bribe, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the information are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Minneapolis Felon Found Guilty in Connection with 2017 Bar ShootingRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of CORTEZ MAURICE CRUMBLE, a/k/a “Bruiser,” 30, on one count of felon in possession of ammunition in connection with a shooting at a Minneapolis bar. CRUMBLE was indicted on January 23, 2018, and was found guilty yesterday afternoon following a jury trial before Senior Judge Ann D. Montgomery in United States District Court in Minneapolis, Minnesota. One additional defendant, CEDRIC LAMONT BERRY, JR, a/k/a “Ced,” 24, pleaded guilty on July 19, 2018, to one count of felon in possession of ammunition. A sentencing hearing for CRUMBLE has been set for March 21, 2018.
Evidence admitted at trial showed that in the early morning hours of November 23, 2017, CRUMBLE and BERRY were at the Broadway Pub in Minneapolis when BERRY and other individuals got into a fight inside the bar. Security personnel broke up the fight, however; video footage captured BERRY as he ran out of the bar and appeared to retrieve something from a vehicle in the parking lot. BERRY was then seen running back into the bar with a firearm in his hand. Shortly afterward, CRUMBLE was captured on video outside the bar shooting at a vehicle as it sped out of the parking lot. BERRY was also captured on video appearing to draw a firearm from his waistband and firing at the vehicle. Law enforcement officers found 20 .40 caliber discharged cartridge casings in the area where the shooting took place.
Additional evidence admitted at trial showed that on December 19, 2017, law enforcement officers conducted a traffic stop of a vehicle that matched the car CRUMBLE and BERRY were seen driving following the shooting. CRUMBLE, who was a passenger in the vehicle at the time of the stop, was taken into custody. Following the execution of a search warrant on CRUMBLE’S cell phone and residence, officers found multiple images of firearms and ammunition.
Both CRUMBLE and BERRY have prior felony convictions prohibiting them from legally possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Thomas Calhoun-Lopez tried the case.
Defendant Information:
CORTEZ MAURICE CRUMBLE, a/k/a “Bruiser,” 30
Minneapolis, Minn.
Convicted:
- Felon in possession of ammunition, 1 count
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Four Defendants Federally Charged in the State's Largest Methamphetamine SeizureRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging FERNANDO RAMOS-MEZA, 33, PETER MARTIN, 34, JAVIER LOPEZ-LOPEZ, 46, AND JUAN DANIEL VALDEZ-MENDOZA, 23, with multiple drug-trafficking violations. MARTIN is also charged with possession of an unregistered firearm. All four defendants were previously charged via federal complaint on October 5, 2018. The defendants remain in custody.
According to charging documents filed with the court, as a result of law enforcement operations initiated by the Cannon River Drug Task Force, officers executed a search warrant at a North Minneapolis home. During the search of the residence, officers located several items of contraband, 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, 33
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
PETER MARTIN, 34
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
- Possession of an unregistered firearm, 1 count
JAVIER LOPEZ-LOPEZ, 46
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
JUAN DANIEL VALDEZ-MENDOZA, 23
Kansas City, Kan.
Charges:
- Conspiracy to distribute and possess with intent 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.
Blaine Man Sentenced to 25 Years in Prison for Production and Possession of Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of SCOTT FRANCIS FORTIER, 39, to 25 years in prison for producing and possessing video files containing child pornography. FORTIER, who was convicted by a federal jury on January 25, 2018, on one count of production of child pornography and one count of possession of child pornography, was sentenced on November 7, 2018, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. In addressing the defendant’s conduct, Judge Schiltz referred to FORTIER and the campers at Circle R Ranch as, “a wolf let loose in a field of sheep,” and further described FORTIER’S dishonest testimony at trial as so preposterous as to be embarrassing.
“Scott Fortier is a serial predator and rapist who victimized underage girls whom he met at a summer camp where he frequented,” said U.S. Attorney MacDonald. “I am grateful that the Court recognized the severity of this type of predatory conduct and I commend the diligent work of the investigators and prosecutors in bringing this defendant to justice.”
"The defendant used his position in the camp to prey on his victims and then further victimized them by producing child pornography and we are satisfied that he will now have to pay for his crimes,” said Special Agent in Charge Jill Sanborn. “We have no greater duty than to protect the most vulnerable among us, and the men and women of the FBI will continue to relentlessly pursue those who seek to harm our children.”
As proven at trial, FORTIER was associated for many years with Circle R Ranch (“the Camp”), a co-ed horseback riding summer camp located in Todd County, Minn. Through his involvement with the Camp, FORTIER met a 17-year-old minor (Minor Victim #1). On September 9, 2016, FORTIER invited Minor Victim #1 and her 15-year-old friend (Minor Victim #2) to his house in Blaine, Minnesota, where he gave them both alcohol and subsequently used each minor to engage in sexually explicit conduct. FORTIER used his cell phone to produce multiple videos of himself engaging in the sexually explicit conduct with Minor Victim #1 and Minor Victim #2. Following an execution of a search warrant, law enforcement discovered that FORTIER also possessed videos of children under the age of 12 engaging is sexually explicit conduct, along with thousands of other images of child pornography.
At the sentencing hearing, the Government introduced statements by Minor Victim #1 and Minor Victim #2, as well as statements by a number of other victims detailing years of sexual misconduct and rapes committed by FORTIER against underage girls at the Circle R Ranch.
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 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 was the result of an investigation conducted by the FBI, the Anoka County Sheriff’s Office, the Todd County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Carol M. Kayser and Special Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Defendant Information:
SCOTT FRANCIS FORTIER, 39
Blaine, Minn.
Convicted:
- Production of child pornography, 1 count
- Possession of child pornography, 1 count
Sentenced:
- 300 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Owner and CEO of Wind Energy Company Charged in Million Dollar Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced a federal indictment charging KERRY DALE KISSLINGER, 58, former owner and CEO of a wind energy company, with five counts of wire fraud in a $1 million fraud scheme.
According to the indictment, KISSLINGER was the owner and CEO of ES Windpower, Inc., a Minnesota corporation that sold wind turbines to farmers, ranchers, and others in Minnesota and throughout the Midwest. KISSLINGER marketed the wind turbines as a way for customers to save money by reducing or even eliminating their energy expenses. Beginning in 2012 until 2015, KISSLINGER devised and executed a scheme to defraud ES Windpower customers by falsely representing that in exchange for payment, KISSLINGER and his company would deliver and install a wind turbine on the customers’ farms or land.
As alleged in the indictment, ES Windpower had a distribution agreement with a North Dakota-based wind turbine manufacturer (“Company A”). The terms of the distribution agreement required ES Windpower to provide Company A with a purchase order, contract, and 30 percent down payment for each new order. The balance of the purchase price was due when Company A delivered the product to ES Windpower. Oftentimes, KISSLINGER failed to send the down payment to Company A and other manufacturers to purchase the wind turbines or otherwise complete any work on the project. On other occasions, KISSLINGER remitted some of the down payment to the manufacturer, but did not complete the ordering process.
As alleged in the indictment, KISSLINGER regularly used some or all of the customers’ payments for personal use and benefit, including to make a $45,000 down payment on the purchase of a lakefront home in Emmons, Minnesota, and to purchase Minnesota Timberwolves season tickets. KISSLINGER at times solicited a second payment from his customers by falsely representing that all or part of their wind turbine was ready to be shipped and installed, despite knowing that he had not placed the orders or made the down payments to the manufacturer. KISSLINGER also falsely represented to some of his customers that each turbine ordered would be protected by a $100,000 bond, which would be used to refund their money if ES Windpower was unable to complete the delivery and installation. KISSLINGER falsely told customers that his failure to deliver and install their wind turbines was due to manufacturing delays. In reality, KISSLINGER knew the delays were caused by his own failure to complete the ordering process and remit his customers’ down payments to the manufacturers. In total, KISSLINGER fraudulently solicited and received more than $1 million in payments from customers.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
KERRY DALE KISSLINGER, 58
Humble, Texas
Charges:
- Wire fraud, 5 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 City of Plymouth Official Sentenced to 24 Months in Prison for Illegal Bribery and Kickback SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RONNIE EUGENE TAGGART, 51, to 24 months in prison for soliciting and receiving bribes and kickbacks in exchange for awarding City of Plymouth contracts. TAGGART pleaded guilty on May 1, 2018, to one count of wire fraud and was sentenced earlier today before Senior Judge Michael J. Davis in United States District Court in Minneapolis, Minnesota.
United States Attorney MacDonald thanked the Special Agents with the FBI for their hard work and expertise in investigating public corruption cases such as this.
“The public trusts that their government officials are honest and will always work in the best interest of the citizens they represent. The defendant took advantage of that trust and used it for his own gain and we believe today’s sentence will serve as an appropriate punishment for his crimes,” said FBI Special Agent in Charge Jill Sanborn. “I want to commend the work of the investigative team on this matter, as their work on this case shows that the FBI will continue to ensure that the public’s faith in their leaders is protected.”
According to the defendant’s guilty plea and documents filed in court, from approximately October 2012 through November 2016, TAGGART was the Facilities Supervisor for the City of Plymouth, Minnesota. In his position, TAGGART was responsible for the maintenance of all buildings owned and operated by the City of Plymouth, including the authority to award contracts for City projects such as building maintenance and cleaning, landscaping, and snow removal.
According to the defendant’s guilty plea and documents filed in court, from approximately 2014 through November 2016, TAGGART devised a scheme to defraud the City of Plymouth by soliciting and receiving bribes and kickbacks in exchange for awarding City contracts to various contractors outside of the competitive bidding process mandated by Minnesota state law and City of Plymouth procurement policy. TAGGART solicited and received cash kickbacks based on the total value of certain contracts. On other contracts, TAGGART received a flat cash kickback amount from the contractor. TAGGART also solicited and received non-cash bribes from certain City contractors, including items and services for TAGGART’S home, such as thousands of dollars in kitchen appliances, installation of new carpet, a concrete driveway, a garage door, a yard irrigation and sprinkler system, and extensive landscaping and electrical work. All of these items and services were provided to TAGGART at no cost.
According to the defendant’s guilty plea and documents filed in court, in order to conceal his failure to comply with the competitive bidding requirements, TAGGART instructed the bribe- and kickback-paying contractors to submit a second, fake quotation to give the false appearance that TAGGART had complied with the state statute and City policy. TAGGART also encouraged the bribe- and kickback-paying contractors to inflate the amount of their bids to cover the cost of the kickbacks and bribes. In total, TAGGART solicited and received bribes and kickbacks worth approximately $58,532.
This case was the result of an investigation conducted by the FBI.
Assistant United States Attorney Joseph H. Thompson prosecuted the case.
Defendant Information:
RONNIE EUGENE TAGGART, 51
Golden Valley, Minn.
Convicted:
- Wire fraud, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
- $58,352 in restitution
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Brooklyn Center Man Sentenced to 92 Months in Prison for Tax Fraud and Identity TheftRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ELLIS ALANCE BANKS, 53, to 68 months for conspiracy to defraud the United States, and 24 months for aggravated identity theft, to be served consecutively. He was sentenced on November 7, 2018, by Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. Judge Doty also ordered more than one million dollars in restitution.
ELLIS ALANCE BANKS, pleaded guilty on May 24, 2018. According to documents filed in court including BANKS’ guilty plea, from at least January 31, 2013 to at least May 28, 2016, BANKS defrauded the United States by filing over 250 false tax returns seeking $1.5 million in fraudulent tax refunds. Additionally, he obtained social security numbers, dates of birth, and other personal identifying information of individuals to use to file fraudulent income tax returns.
“Millions of hardworking Americans pay their taxes expecting that money to be used to fund the essential needs of Government,” stated IRS Criminal Investigation Special Agent in Charge Gabe Grchan. “Ellis Banks stole more than one million dollars from the pockets of our citizens and this sentence illustrates that there are consequences for exploiting others through fraud and deceit to steal from the United States Treasury.”
This case was the result of an investigation conducted by the Internal Revenue Service.
Assistant U.S. Attorney Michelle Jones prosecuted the case.
Defendant Information:
ELLIS ALANCE BANKS, 53
Brooklyn Center, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- Aggravated identity theft, 1 count
Sentenced:
- 92 months in prison
- Three years supervised release
- $1,001,999.49 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney’s Office and FBI to Host Community Meeting to Discuss Hate Crimes in the Wake of the Tragic Events in Pittsburgh, PennsylvaniaRead the Press Release
United States Attorney Erica H. MacDonald and Special Agent in Charge of the FBI Minneapolis Division Jill Sanborn will convene a community meeting in response to the tragic shooting that took place this past week at the Tree of Life synagogue in Pittsburgh, Pennsylvania. Leaders of the interfaith community, representatives of houses of worship, and other community stakeholders are encouraged to attend to discuss federal hate crimes laws, identifying and reporting hate crimes, and best practices for creating safe and secure houses of worship. The meeting will take place on Monday, November 5, 2018, from 6:00-7:30 p.m. at the Dakota County Western Service Center in Apple Valley, Minnesota. For more information, please email [email protected]
“Here in Minnesota and across the nation, we stand united against the violent and hateful events that have recently taken place in Pittsburgh, Pennsylvania and Jeffersontown, Kentucky. These attacks are reprehensible and antithetical to our values as a nation,” said U.S. Attorney MacDonald. “The safety and security of all Minnesotans is my highest priority and these events serve as a solemn reminder that law enforcement and community leaders must remain vigilant in our shared work of building public safety awareness around the issue of hate crimes. As U.S. Attorney, I will not tolerate hateful acts from any individual or group that seeks to threaten another’s civil rights.”
“The attacks in Pittsburgh show that evil does exist, but we can find hope in the response and solidarity of an entire nation, which mourns the senseless and tragic loss of life,” said SAC Sanborn. “Every American has the right to live, love and worship how they choose and the FBI stands shoulder to shoulder with our law enforcement partners to protect those rights. We are looking forward to this meeting and being a part of the solution in our community.”
Steve Hunegs, Executive Director of the Jewish Community Relations Council of Minnesota and the Dakotas (JCRC) said, “The JCRC is proud to work with our federal, state, and local law enforcement partners in Minnesota to assist with educating about civil rights and community security. We look forward to our continued work with the U.S. Attorney’s Office and FBI to organize community forums that provide critical security guidance and address community concerns. In the wake of hate incidents impacting the Muslim and Jewish communities in 2017, the JCRC joined with the U.S. Attorney’s Office and FBI to provide security assistance to a diverse group of community organizations and houses of worship. In the aftermath of the Etz Chaim (Tree of Life) murders, we are grateful for the swift response of law enforcement and the outpouring of support to the Jewish community.”
On October 29, 2018, the Department of Justice announced the launch of a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all of the Department components working on hate crimes. For more information, please visit https://www.justice.gov/hatecrimes
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
Twin Cities Construction Company Owner Sentenced to 49 Months in Prison for Defrauding Investors Out of $880,000Read the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of JESSE WELLS HAUG, 33, to 49 months in prison for defrauding real estate investors out of $880,000. HAUG, who pleaded guilty on June 4, 2018, to one count of wire fraud, was sentenced yesterday 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, HAUG is the owner of a Twin Cities-based construction company called 7-10 Services, LLC. Beginning in 2015 and continuing through the end of 2016, HAUG executed a scheme to defraud investors by falsely representing to them that he would use their money to purchase and renovate residential real estate, and, in exchange, he would share the profits when the properties were re-sold, or “flipped.”
According to the defendant’s guilty plea and documents filed in court, during the course of the scheme, HAUG obtained $880,000 from two victim-investors to purchase and renovate residential properties located throughout the Twin Cities. During the course of HAUG’S interactions with the victims, HAUG provided them with false documentation showing how the investment money was purportedly being used, false information about upcoming real estate closings and re-sales of properties HAUG claimed to have flipped, as well as fictional documents showing “returns” from the so-called investment properties. In reality, HAUG spent the investment money on personal expenses, including credit card bills, and never purchased or sold any of the properties.
This case was the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorneys Kimberly A. Svendsen and Charles J. Kovats prosecuted this case.
Defendant Information:
JESSE WELLS HAUG, 33
Rosemount, Minn.
Convicted:
- Wire fraud, 1 count
Sentenced:
- 49 months in prison
- Three years of supervised release
- $880,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
California Man Pleads Guilty to Defrauding Victims in IRS Impersonator ScamRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of YU ZHANG, 27, to one count of conspiracy to commit wire fraud. ZHANG, who was initially charged via criminal complaint on June 8, 2018, pleaded guilty yesterday before Senior Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota.
According to the ZHANG’s guilty plea, from March 12, 2018, to June 8, 2018, he participated in a scheme to obtain money from victims through which co-conspirators posed as IRS agents and threatened to arrest victims unless immediate payments were made for allegedly “delinquent” taxes.
As part of the scheme, ZHANG’S co-conspirators made phone calls to victims in numerous states across the country and, posing as government agents, employed a number of strategies to threaten or entice the victim into making an immediate payment to a purported governmental entity. Oftentimes, the co-conspirator would pose as an Internal Revenue Service (IRS) agent and threaten to have the victim arrested unless the victim immediately made payment to satisfy an alleged tax debt. The victims were instructed to bring funds to a local Target store and purchase a gift card that could be used to satisfy the “debt,” and provide the card number and activation code to the co-conspirator over the phone. The co-conspirators would then send a message to ZHANG containing the gift card numbers and activation codes, so that ZHANG could use that information to redeem the gift cards at Target stores by purchasing pre-paid, third-party gift cards such as Google Play and Steam cards. To avoid detection, ZHANG would travel to multiple Target stores, including stores in other states, and use the self-checkout registers for his transactions. After purchasing the third-party cards, ZHANG would immediately convey the card numbers and activation codes to others who were involved in the scheme.
In his guilty plea, ZHANG admitted to redeeming more than $250,000 worth of Target gift cards by conducting hundreds of transactions at Target stores in Minnesota and Colorado.
If you believe you may have fallen victim to an IRS impersonation scam, you may file a report with the Target store or other retailer where the gift cards were purchased, the local police department, or TIGTA at https://www.treasury.gov/tigta/contact_report_scam.shtml
This case is the result of an investigation conducted by the Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Amber M. Brennan is prosecuting the case.
Defendant Information:
YU ZHANG, 27
Baldwin Park, Calif.
Convicted:
- Conspiracy to commit wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brooklyn Center Man Sentenced to 210 Months in Prison for Methamphetamine, Cocaine DistributionRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of EDGAR MARTINEZ-SANCHEZ, 41, to 210 months in prison for his role in a methamphetamine and cocaine distribution conspiracy. MARTINEZ-SANCHEZ, who pleaded guilty on November 14, 2017, to one count of conspiracy to distribute methamphetamine and cocaine, was sentenced yesterday before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from 2014 through February 2017, MARTINEZ-SANCHEZ along with other individuals including his co-defendants ROBERTO GALICIA-MACEDA and ELIEL GARCIA, conspired to distribute and transport methamphetamine and cocaine across the Twin Cities metropolitan area as part of the Martinez-Sanchez Drug Trafficking Organization. After a contested evidentiary proceeding on Tuesday, October 23, 2018, the Court found that MARTINEZ-SANCHEZ was the organization’s manager in Minnesota, who directed his co-defendants in their drug trafficking activities along with co-conspirators in Arizona and Mexico. For example, MARTINEZ-SANCHEZ negotiated three separate 1-pound methamphetamine transactions with a government informant and then directed GALICIA-MACEDA to deliver that methamphetamine, ultimately to an undercover law enforcement officer. After each transaction, law enforcement agents followed GALICIA-MACEDA as he traveled back to SANCHEZ to deliver the money he had received from the transaction. SANCHEZ also directed GARCIA in the organization’s day-to-day operations as a drug deliverer and money courier.
The investigation, which began in 2016, included the February 7, 2017, seizure of approximately $391,000 from GALICIA-MACEDA’s vehicle as he traveled southbound on Interstate 35 from the Twin Cities. During a February 14, 2017, arrest and warrant takedown operation, agents seized approximately $150,000, 11 pounds of methamphetamine, four kilograms of cocaine, as well as other evidence, during searches of the residences held by MARTINEZ-SANCHEZ, GALICIA-MACEDA, and GARCIA.
This case was the result of an investigation conducted by Homeland Security Investigations, the Drug Enforcement Administration, the Saint Paul Police Department, and the Minneapolis Police Department.
Assistant United States Attorney Allen A. Slaughter prosecuted this case.
Defendant Information:
EDGAR MARTINEZ-SANCHEZ, 41
Brooklyn Center, Minn.
Convicted:
- Conspiracy to distribute methamphetamine and cocaine, 1 count
Sentenced:
- 210 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican Citizen Pleads Guilty to Faking His Own Kidnapping in an Attempt to Obtain an Immigration VisaRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ALEJANDRO MARIO CORTES, 46, to one count of visa fraud and one count of illegally reentering the United States. CORTES, who was initially charged via criminal complaint on August 28, 2018, pleaded guilty earlier today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea, between April 11, 2018 and August 29, 2018, CORTES conspired with another individual to fraudulently apply for and obtain a U Visa based on the false claim that CORTES was kidnapped from his home in Chicago, Illinois and taken against his will to St. Paul, Minnesota. As part of the scheme, CORTES and his co-conspirator traveled together from Illinois to Minnesota and stayed in a storage facility for several days. On April 17, 2018, the co-conspirator drove CORTES to St. Paul and, at CORTES’ request, bound the defendant’s mouth and hands with duct tape and left him near Randolph Avenue in St. Paul. Law enforcement officers responded to a report made by a snowplow driver and located the individual, who later identified himself as CORTES.
In his guilty plea, CORTES admitted to telling local and federal law enforcement officers that he had been kidnapped from Chicago and transported to Minnesota against his will, and that he received multiple threatening text messages in the days leading up to the fabricated kidnapping. CORTES also admitted that he sought medical treatment at Regions Hospital for injuries he claimed to have sustained during the kidnapping, and he obtained gift cards for personal items from an organization providing services to crime victims.
CORTES is a citizen of Mexico with no lawful status in the United States. CORTES was removed from the United States in 2001, and again in 2010.
This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.
Assistant U.S. Attorney Angela Munoz-Kaphing is prosecuting the case.
Defendant Information:
ALEJANDRO MARIO CORTES, 46
Chicago, Ill.
Convicted:
- Conspiracy to commit visa fraud, 1 count
- Reentry of removed alien, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Fairfax Bookkeeper Sentenced to Prison for $540,000 Embezzlement SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of THERESA ERNESTINE LINSMEIER, 59, to 27 months in prison for embezzling $540,000 from her former employer. LINSMEIER, who pleaded guilty on June 7, 2018, to one count of wire fraud and one count of filing a false tax return, was sentenced earlier today before Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from 1998 to 2016, LINSMEIER was employed as a bookkeeper at Farm Mercantile, Inc., a hardware store located in Fairfax, Minn. In her position, LINSMEIER had access to and was an authorized signatory on Farm Mercantile’s bank accounts and had authority to sign and issue checks on behalf of the company. From about 2011 through 2016, LINSMEIER devised a scheme to embezzle more than $500,000 from Farm Mercantile. As part of the scheme, LINSMEIER transferred money to her personal credit cards directly from the bank accounts to which she had access. LINSMEIER attempted to conceal her embezzlement by creating false entries in Farm Mercantile’s general ledger to make it look like the money she stole had actually been used to pay legitimate business expenses. In total, LINSMEIER stole approximately $540,063, which she used for online gambling.
LINSMEIER did not report the money she embezzled from Farm Mercantile on her federal income tax returns. LINSMEIER instead filed tax returns that falsely reported and understated her income. These false returns allowed her to avoid more than $100,000 in federal income taxes from 2012 through 2016.
This case was the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation.
Assistant United States Attorney Joseph H. Thompson prosecuted this case.
Defendant Information:
THERESA ERNESTINE LINSMEIER, 59
Fairfax, Minn.
Convicted:
- Wire fraud, 1 count
- Filing a false tax return, 1 count
Sentenced:
- 27 months in prison
- Three years of supervised release
- $540,063 in restitution
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Michigan Man Sentenced to 60 Months in Prison for Heroin DistributionRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of RAYMOND ANTHONY POOLE, 44, to 60 months in prison for distributing heroin on the Leech Lake Indian Reservation and surrounding areas. POOLE pleaded guilty to one count of conspiracy on August 24, 2018, and was sentenced 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 April 2016 and March 2017, POOLE conspired with other individuals to distribute approximately 227 grams of heroin between Minneapolis, Bemidji, Cass Lake, Minnesota, and on the Leech Lake Indian Reservation, areas that have been significantly affected by heroin.
This case is the result of an investigation conducted by the Leech Lake Tribal Police Department, the Paul Bunyan Drug Task Force, the Minnesota Bureau of Criminal Apprehension, the Bureau of Indian Affairs, the United States Postal Inspection Service, the Headwaters Safe Trails Task Force, and the Hennepin County Violent Offender Task Force.
Assistant United States Attorney Bradley M. Endicott prosecuted the case.
Defendant Information:
RAYMOND ANTHONY POOLE, 44
Detroit, Mich.
Convicted:
- Conspiracy to distribute heroin, 1 count
Sentenced:
- 60 months in prison
- Four years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Red Lake Woman Sentenced to 42 Months in Prison for Involuntary ManslaughterRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of CHELSEA MARIE DESERLY, 30, to 42 months in prison for involuntary manslaughter resulting from a drunk driving crash. DESERLY, who pleaded guilty on May 3, 2018, to one count of involuntary manslaughter, was sentenced today before Judge Wilhelmina M. Wright in U.S. District Court in Bemidji, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on May 16, 2015, DESERLY was driving a pickup truck while under the influence of alcohol. DESERLY was unable to keep the pickup on the roadway and rolled the vehicle into a ditch, ejecting the victim from the vehicle. DESERLY had a blood alcohol concentration of .198.
This case was the result of an investigation conducted by the Red Lake Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant United States Attorney Clifford B. Wardlaw prosecuted the case.
Defendant Information:
CHELSEA MARIE DESERLY, 30
Red Lake, Minn.
Convicted:
- Involuntary manslaughter, 1 count
Sentenced:
- 42 months in prison
- Three years of supervised release
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Guilty Pleas Entered in Fraud Scheme Involving Local Environmental Company’s Improper Disposal of Toxic ChemicalsRead the Press Release
United States Attorney Erica H. MacDonald today announced that LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC., pleaded guilty to one count of mail fraud for the improper disposal of toxic waste. Co-defendants JOHN D. MILLER JR., 61, and JOSEPH V. MILLER, 58, previously entered guilty pleas for their roles in the fraud scheme.
“Luminaire defrauded its customers and, in doing so, exposed the community to the toxic chemicals they had been paid to safely destroy. The United States will vigorously pursue those who steal and pollute for their own profit,” said U.S. Attorney Erica MacDonald.
“The laws surrounding the safe management of PCBs exist to protect human health and the environment,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal enforcement program in Minnesota. “Instead of complying with those laws, the defendants defrauded their customers and put workers and the public at risk by removing PCB labels and selling PCB-containing fluorescent light ballasts to scrap metal recyclers. EPA and its law enforcement partners are committed to working aggressively to prevent these types of flagrant and dangerous violations.”
According to the defendant’s guilty plea and documents filed in court, LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC. (“LUMINAIRE”) provided recycling and waste disposal services to customers. Among other services, LUMINAIRE offered to pick up customers’ fluorescent light ballasts containing polychlorinated biphenyls (“PCBs”), transport the PCB-containing ballasts to the LUMINAIRE facility located in Plymouth, Minnesota, and remove and dispose of all the PCBs in accordance with the Toxic Substances Control Act (TSCA). In exchange, LUMINAIRE charged customers a fee of approximately $0.35 per pound of PCB lighting ballasts plus transportation costs. Because the PCBs contained in the ballasts are considered a toxic chemical, regulations promulgated by the United States Environmental Protection Agency (“EPA”) mandate special procedures and documentation for the transportation and disposal of PCB waste.
According to the defendant’s guilty plea and documents filed in court, between 2010 until 2015, JOHN MILLER, owner of LUMINAIRE, and other LUMINAIRE employees falsely represented to customers that LUMINAIRE would properly transport and dispose of customers’ toxic chemicals. Instead, after picking up loads of PCB-ballasts from customers, JOHN MILLER instructed LUMINAIRE employees to remove warning labels from the containers holding the PCB-ballasts, and then sell the PCB-ballasts as scrap metal to scrap yards and metal recycling facilities. In order to conceal the fact that the PCB-ballasts had not been received and processed at LUMINAIRE’S facility, JOHN MILLER directed LUMINAIRE employees, including JOSEPH MILLER, to falsely certify on shipping manifests that the PCB-ballasts had arrived at LUMINAIRE’S facility. At JOHN MILLER’S direction, LUMINAIRE employees also sent copies of the falsified shipping documentation by mail to customers and to certain state environmental agencies. In addition, JOHN MILLER instructed LUMINAIRE employees to prepare and deliver falsified invoices to customers who, in turn, made payments to LUMINAIRE. As a result of the scheme, LUMINAIRE fraudulently collected more than $1,000,000 in fees and additional profits.
This case is the result of an investigation conducted by the U.S. Environmental Protection Agency and the Hennepin County Department of Environmental Protection.
Assistant U.S. Attorneys Benjamin F. Langner and Amber M. Brennan are prosecuting this case.
Defendant Information:
LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC.
Plymouth, Minn.
Convicted:
- Mail fraud, 1 count
JOHN D. MILLER JR., 61
Plymouth, Minn.
Convicted:
- Conspiracy to commit mail and wire fraud, 1 count
JOSEPH V. MILLER, 58
Chanhassen, Minn.
Convicted:
- Falsification of documents with intent to obstruct a federal matter, 1 count
Former Correctional Officer Sentenced to 14 Months in Prison for Having Sex with an InmateRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of MARK MCSHANE, 37, a former correctional officer, to 14 months in prison for engaging in a sexual relationship with a female inmate. On June 7, 2018, MCSHANE pleaded guilty to a felony information charging him with one count of sexual abuse of a ward. MCSHANE was sentenced earlier today before Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minnesota.
Assistant U.S. Attorney Julie Allyn said, “The sentence handed down today was appropriate for Mr. McShane’s misconduct. When a correctional officer, a person in a position of authority, takes advantage of an inmate, it erodes trust throughout the institution and has a negative impact on every other inmate and employee.”
According to his guilty plea and documents filed in court, MCSHANE was employed as a correctional officer at the Federal Correctional Institution (FCI) in Waseca, Minnesota. From November 2016 through January 2017, MCSHANE engaged in a sexually inappropriate relationship with the inmate while she was incarcerated. Subsequently, in February 2017, MCSHANE became extremely intoxicated during a social outing and admitted to co-workers his sexual misconduct with the inmate.
This case is the result of an investigation conducted by the Department of Justice Office of the Inspector General.
This case was prosecuted by Assistant U.S. Attorney Julie E. Allyn.
Defendant Information:
MARK MCSHANE, 37
Owatonna, Minn.
Convicted:
- Sexual abuse of a ward, 1 count
Sentenced:
- 14 months in prison
- Five years of supervised release
# # #
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Registered Sex Offender Sentenced to 18 Years in Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of PAUL LEWIS AXELSON, 42, a registered sex offender, to 216 months in prison on one count of receipt of child pornography. AXELSON, who pleaded guilty on February 13, 2018, was sentenced today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, AXELSON was convicted in 2008 in Dakota County, Minnesota of third degree criminal sexual conduct and possession of child pornography. In April 2016, while on probation for the 2008 conviction, AXELSON used file sharing software to download, collect, and distribute child pornography. A forensic review of AXELSON’S computer revealed that he possessed more than 160,000 image and video files containing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact 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 is the result of an investigation conducted by the Federal Bureau of Investigation and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Carol M. Kayser.
Defendant Information:
PAUL LEWIS AXELSON, 42
Hastings, Minn.
Convicted:
- Receipt of child pornography, 1 count
Sentenced:
- 216 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Saint Paul Felon Charged with Attempted Robbery of A Pharmacy, Drug-Trafficking and Firearms ViolationsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging MICHAEL CORTEZ REED, 25, with the attempted robbery of a Walgreens pharmacy, as well as drug-trafficking and firearms violations.[1] REED was arraigned yesterday afternoon before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
According to the indictment, on August 27, 2017, REED used force, violence, and fear of injury in an attempt to steal controlled substances from a Walgreens pharmacy located in St. Paul, Minnesota. Between September 13, 2017 and September 5, 2018, REED was found to be in possession of five or more grams of methamphetamine and three firearms, including a Ruger model P95DC nine-millimeter semi-automatic firearm, a Phoenix Arms model Raven 25 .25-caliber semi-automatic pistol, and a Kahr Arms model P380 .380-caliber semi-automatic pistol.
Because he is a felon, REED is prohibited under federal law from possessing any type of firearm at any time.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit robberies of businesses engaged in interstate commerce. If convicted, REED faces potential maximum penalties of 10 years to life in prison.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul 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 Thomas Calhoun-Lopez and Benjamin Bejar are prosecuting the case.
Defendant Information:
MICHAEL CORTEZ REED, a/k/a “Hyphy,” 25
St. Paul, Minn.
Charges:
- Attempted interference with commerce by robbery, 1 count
- Felon in possession of a firearm, 3 counts
- Possession with intent to distribute methamphetamine, 1 count
- Carrying a firearm during and in relation to a drug trafficking crime, 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.
Justice Department Awards More Than $30 Million to Project Safe Neighborhoods to Combat Violent CrimeRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the Department’s violent crime reduction strategy. Today, $28 million in grant funding was awarded nationally to combat violent crime through PSN programs, as well as an additional $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Locally, the District of Minnesota has received a funding allocation of $441,632.
“Collaboration with federal, state, local, and tribal law enforcement and community stakeholders to develop tailored solutions to address violent crime issues throughout the state is key,” said U.S. Attorney MacDonald. “I am surging federal resources to our violence reduction efforts, which includes hiring additional prosecutors and the provision of nearly $500,000 in funding. These resources will support an aggressive, three-pronged approach to our PSN strategy—including enforcement, prevention, and treatment—because ensuring safe neighborhoods and communities for all Minnesotans is my top priority.”
The District of Minnesota is collaborating with the Minnesota Department of Public Safety to administer the funding. A portion of the funding will be dedicated to the City of Minneapolis to continue efforts to reduce gang and gun violence through its Group Violence Intervention (GVI) strategy. Funding will also be set aside for other jurisdictions that are seeing an uptick in violence and are interested in developing locally-based solutions, in partnership with the federal government. Additional information for jurisdictions interested in applying will be available in the coming months, through the Minnesota Department of Public Safety’s Office of Justice Programs.
FY 2018 PSN Funding Allocation amounts can be found here.
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Two Twin Cities Chiropractors Sentenced to Prison for Orchestrating Insurance Fraud SchemesRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PRESTON ELLARD FORTHUN, 40, and ADAM JOHN BURKE, 34, for their roles in two separate multi-million dollar insurance fraud conspiracies. FORTHUN was sentenced to 60 months in prison and BURKE was sentenced to 90 months in prison. Both defendants were found guilty last year following separate jury trials before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota.
U.S. Attorney MacDonald said, “Mr. Forthun and Mr. Burke are two medical professionals who chose to cater to their own greed above their patients’ chiropractic care. Today, they are faced with the consequences of their criminal actions.”
“These chiropractors put personal greed above their professional duty,” said Minnesota Commerce Commissioner Jessica Looman. “These sentences send a strong message that health insurance fraud is a serious crime and those who perpetrate it will be investigated and prosecuted. The Commerce Fraud Bureau will continue to aggressively pursue criminals who scam Minnesotans.”
“The defendants took an oath to help - but their scheme defrauded all of us, and today's sentence shows that there are severe penalties for those who seek to defraud the system,” said FBI Special Agent in Charge Jill Sanborn. “I want to thank the entire team who worked tirelessly to unwind this scheme and get us to where we are today.”
As proven at trial, FORTHUN and BURKE, both licensed Doctors of Chiropractic, devised separate schemes to defraud automobile insurance companies by hiring patient recruiters, known as “runners,” to solicit automobile accident victims to attend treatments at their clinics. FORTHUN and BURKE paid the runners for each patient they recruited, and the runners in turn typically paid the patients to induce them to attend treatments at the clinic. Both fraud schemes were structured in a way that would maximize their clinics’ billings to insurance companies. Knowing that the runners were paying patients, FORTHUN and BURKE withheld kickback payments to the runners until after the patients had attended a certain number of treatment sessions. Thus, the kickback payments were intended to ensure that patients came for treatments at the defendants’ clinics because of the payments, as opposed to the necessity and reasonableness of the treatments. As a result of their fraud schemes, FORTHUN and BURKE billed millions of dollars to the automobile insurance companies.
These cases are the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Federal Bureau of Investigation. The Minneapolis Police Department, Saint Paul Police Department, Minnesota State Patrol, and Homeland Security Investigations provided additional assistance.
These cases were prosecuted by Assistant U.S. Attorneys John Kokkinen, Amber M. Brennan and David M. Maria.
Defendant Information:
PRESTON ELLARD FORTHUN, 40
Bloomington, Minn.
Convicted:
- Conspiracy to commit mail and wire fraud, 1 count
- Mail fraud, 6 counts
- Wire fraud, 7 counts
Sentenced:
- 60 months in prison
- Two years of supervised release
- $1,553,500 in restitution
ADAM JOHN BURKE, 34
Minneapolis, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
- Mail fraud, 12 counts
Sentenced:
- 90 months in prison
- Two years of supervised release
- $991,530 in restitution
# # #
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Justice Department Awards More Than $70 Million Dollars to Support Local School Safety Efforts NationwideRead the Press Release
United States Attorney Erica H. MacDonald today announced that the Department of Justice has awarded a total of $1,370,418 in grant funding to the Minneapolis Public School District, Hennepin County, and to the City of Duluth to support school safety efforts. The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.
“When we send our children to school, a place intended to be full of opportunity for learning and development, safety is paramount,” said U.S. Attorney MacDonald. “This is the first year funding has been awarded under the STOP School Violence Act of 2018 and I am grateful to see these dollars directly supporting our children’s ability to learn and thrive in a safe environment.”
The Department of Justice’s Office of Justice Programs and the Office of Community Oriented Policing Services (COPS Office) awarded the funds through three funding streams. The grants will provide new technology for reporting systems and other threat deterrent measures; create school safety training and education programs for school administrators, staff, students, and first responders; and support crisis intervention teams.
For additional information on these grants, visit: www.ojp.gov or www.cops.usdoj.gov.
Awards: 1
FY 2018 STOP School Violence Prevention and Mental Health Training Program: funding will provide training and education on preventing violence and effectively responding to related mental health crises.
- Special School District No. 1 (Minneapolis) - $219,740
- Hennepin County – $500,000
FY 2018 STOP School Violence Threat Assessment and Technology Reporting Program: funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.- Special School District No. 1 (Minneapolis) - $181,928
FY 2018 COPS Office School Violence Prevention Program: funding is for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.- The City of Duluth - $468,750
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1 No funding awarded under the STOP School Violence Act may be used for the provision of a firearm to any person or training in the use of a firearm.
Twenty-Six Count Indictment Charges Convicted Sex Offender with Computer Hacking, Producing Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging BARTON GEORGE SCOTT, 35, with child pornography and computer hacking offenses. SCOTT made his initial appearance on September 25, 2018, before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota.
As alleged in the indictment, between April 30 and August 8, 2017, SCOTT gained unauthorized access to the Snapchat accounts of 25 victims. In several cases, SCOTT used extortionate tactics in an attempt to obtain sexually explicit images and videos from the victims, many of whom were minors.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the FBI at (763) 569-8000. Callers may remain anonymous.
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 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, the Carver County Sheriff’s Office, the Stillwater Police Department, the Washington County Sheriff’s Office, the St. Croix County Sheriff’s Office, New Richmond Police Department, and the Anne Arundel County Sheriff’s Office.
Assistant U.S. Attorney Katharine T. Buzicky is prosecuting the case.
Defendant Information:
BARTON GEORGE SCOTT, 35
City of residence unknown
Charges:
- Production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
- Attempted production of child pornography, 6 counts
- Fraud and related activity in connection with computers 18 U.S.C. § 1030(a)(7)(B), 6 counts
- Fraud and related activity in connection with computers 18 U.S.C. § 1030(a)(2)(C), 12 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Redby Man Sentenced to 30 Years in Prison for the Violent Beating Death of 23-Month-Old SonRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of GARY WAYNE JACKSON, JR., 26, to 30 years in prison for second-degree murder in the beating death of his 23-month-old son. JACKSON, who pleaded guilty on June 20, 2018, was sentenced today before U.S. District Judge Ann D. Montgomery in U.S. District Court in Bemidji, Minnesota.
According to his guilty plea and documents filed in court, on January 2, 2018, JACKSON, in a fit of rage, repeatedly punched his 23-month-old son, resulting in the child’s death. Following the assault, JACKSON failed to seek appropriate medical care for his son. The final autopsy report revealed the cause of death as blunt force trauma to the head and torso.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, and the Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
GARY WAYNE JACKSON, JR., 26
Redby, Minn.
Convicted:
- Murder in the Second Degree, 1 count
Sentenced:
- 30 years in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Guilty Pleas Entered in Inver Grove Heights Cell Phone Store RobberyRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JAMAAL MARQUIE MAYS, 33, for the armed robbery of an Inver Grove Heights business. MAYS and his co-defendant, JAQUON KESHAWN MOMAN, 26, were charged in a superseding indictment on February 7, 2018. MAYS entered his guilty plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. MOMAN pleaded guilty on August 1, 2018.
According to the defendant’s guilty plea and documents filed in court, on August 17, 2017, MAYS and MOMAN entered a Verizon Wireless store in Inver Grove Heights, Minnesota, armed with a .45 caliber semi-automatic pistol. After waiting for customers to leave the store, MAYS and MOMAN held the store employee at gunpoint while demanding money and cell phones. The employee pretended to comply, but then shot MAYS in self-defense with a firearm the employee was licensed to carry. MAYS’ firearm was also discharged. During the exchange of gunfire, a stray bullet grazed a worker in an adjacent restaurant. MAYS was wounded and remained at the scene, while MOMAN fled on foot.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Inver Grove Heights 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.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
JAMAAL MARQUIE MAYS, 33
Unknown
Convicted:
- Hobbs Act robbery, 1 count
- Discharging a firearm during and in relation to a crime of violence, 1 count
JAQUON KESHAWN MOMAN, 26
Unknown
Convicted:
- Hobbs Act robbery, 1 count
- Discharging a firearm during and in relation to a crime of violence, 1 count
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Federal Indictment Charges Minneapolis Man in Lakeville Gun Store BurglaryRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging PRESLEY AARON PELTIER, 22, with stealing four firearms from a federally licensed firearms dealer. PELTIER, who was arrested on August 17, 2018, made his initial appearance earlier today before Magistrate Judge Becky R. Thorson in U.S. District Court in Saint Paul, Minnesota.
According to the indictment and law enforcement reports, on August 3, 2018, PELTIER and another individual, drove a stolen SUV into the rear entrance of a federally licensed firearms dealer’s storefront in Lakeville, Minnesota, causing significant damage. PELTIER and the other individual stole four firearms from the store, including a Beretta, model 9000S, .40-caliber semiautomatic pistol, a Ruger, model SR45, .45ACP-caliber semiautomatic pistol, a Smith & Wesson, model 5906, nine-millimeter-caliber semiautomatic pistol, and a Ruger, model SR45, .45ACP-caliber semiautomatic pistol, and fled the scene in the stolen SUV. PELTIER and the other individual then abandoned the stolen SUV in a south Minneapolis school parking lot.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lakeville Police Department, and the Minneapolis 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 U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:
PRESLEY AARON PELTIER, 22
Minneapolis, Minn.
Charges:
- Theft of firearms from a federally licensed dealer, 1 count
- Possession of stolen 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.
District of Minnesota Tribes to Receive $8.6 Million in Public Safety GrantsRead the Press Release
United States Attorney Erica H. MacDonald joined the Department of Justice today in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities. Six tribes within the District of Minnesota have received grants totaling more than $8.6 million.
The Leech Lake Band of Ojibwe will receive a total of $1,921,228, the Lower Sioux Indian Community will receive a total of $3,261,780, the Mille Lacs Band of Ojibwe will receive a total of $1,187,669, the Red Lake Band of Chippewa Indians will receive a total of $1,310,299, the Prairie Island Indian Community will receive a total of $598,976, and the White Earth Reservation Tribal Council will receive a total of $337,426.
U.S. Attorney MacDonald said, “Violent crime disproportionately affects many of our Native American communities. These grants will directly support efforts to address some of the toughest challenges – such as domestic violence and opioid and substance abuse.”
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities. A listing of today’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.
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Federal Grand Jury Indicts Indiana Man for String of Twin Cities Drugstore RobberiesRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging MICHAEL IMAN WHITE, 19, with robbery and attempted robbery of multiple Walgreens pharmacies.[1] WHITE, who was arrested on a federal criminal complaint on August 22, 2018, will be arraigned tomorrow afternoon before a Magistrate Judge in U.S. District Court.
According to the indictment, between April 3, 2018 and July 17, 2018, WHITE used force, violence, and fear of injury to commit two robberies and two attempted robberies of Walgreens pharmacies located in St. Paul and Edina, Minnesota. In total, WHITE stole approximately $69,000 worth of narcotics and other controlled substances.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce. If convicted, WHITE faces a potential maximum penalty of 20 years in prison on each count.
This case was the result of an investigation conducted by the FBI, the Edina Police Department, the Saint Paul Police Department, and the Bloomington 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 U.S. Attorney Jeffrey S. Paulsen is prosecuting the case.
Defendant Information:
MICHAEL IMAN WHITE, 19
Muncie, Ind.
Charges:
- Attempted interference with commerce by robbery, 2 counts
- Interference with commerce by robbery, 2 counts
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
North Dakota Man Convicted of Threatening to Murder A Federal JudgeRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of ROBERT PHILIP IVERS, 65, for threatening to murder a federal judge and interstate transmission of a threat to injure. IVERS was found guilty today following a jury trial before Judge Robert W. Pratt, in United States District Court in Saint Paul, Minnesota.
“This defendant has a long history of using words to frighten and intimidate. Because of the excellent work of the United States Marshal’s Service, he is now being held accountable for making threats against a sitting United States District Court Judge in retaliation for the performance of her duties,” said Assistant U.S. Attorney Julie Allyn. “We are grateful to the jury for their careful attention to the evidence and their serious deliberation, resulting in a just verdict.”
As proven at trial, in January 2017, a United States District Court Judge (the “Victim Judge”) held a bench trial on a lawsuit brought by IVERS. The Victim Judge ruled against IVERS. He responded by sending a series of threatening letters and calling a court employee to say he was crazy angry at the Victim Judge and described himself as a “walking bomb.” IVERS was told repeatedly by Deputy U.S. Marshals to stop his threatening language.
On November 9, 2017, IVERS filed another civil lawsuit alleging the same facts as those in the case he lost before the Victim Judge. As part of the new civil case, IVERS was referred to two volunteer lawyers for a telephone consultation. After the lawyers discussed his case and told IVERS they did not believe he had a valid legal claim, IVERS began talking about his previous case with the Victim Judge. One of the lawyers described IVERS as becoming “intensely angry” and making threatening statements including:
• “This [expletive] judge stole my life from me.”
• “I had overwhelming evidence.”
• The Judge “stacked the deck” to make sure I lost this case.
• “She is lucky” I was “going to throw some chairs.”
• “You don’t know the fifty different ways I planned to kill her.”
After the lawyer reported the threats IVERS made during the phone conversation, two Deputy U.S. Marshals went to a residence in West Fargo, North Dakota to speak with IVERS about the threats. When confronted, IVERS became extremely agitated, and screamed at the Deputies, among other things, that he was glad the Victim Judge was scared, because “that [expletive] judge stole my life.”
This case is the result of an investigation conducted by the United States Marshals Service.
Assistant U.S. Attorneys Julie E. Allyn and Timothy C. Rank tried the case.
Defendant Information:
ROBERT PHILIP IVERS, 65
West Fargo, N.D.
Convicted:
- Threatening to murder a federal judge, 1 count
- Interstate transmission of a threat to injure the person of another, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Bemidji Residents Found Guilty in Home Invasion CaseRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of SHANISE FRANCES OSTLUND, 29, and KEVIN ROBERTSON, 32, for committing a home invasion on the Red Lake Indian Reservation. OSTLUND and ROBERTSON were found guilty today following a jury trial before Judge Susan Richard Nelson in United States District Court in Duluth, Minnesota. Two additional defendants, DEREK PADDY and CHERAI CLARK, each pleaded guilty to one count of burglary in the second degree.
United States Attorney MacDonald said, “Robberies, home invasions and other crimes involving domestic violence are all too common on the Red Lake Reservation. These crimes threaten the safety and stability of communities, and they will not be tolerated. I am grateful to the jury for their swift verdict and to our federal and tribal law enforcement partners for their investigative work on this case.”
As proven at trial, in the early morning hours of November 24, 2017, following a brawl at a local Walmart store, OSTLUND, ROBERTSON, PADDY and CLARK drove together to the victim’s residence with intentions to confront the victim and steal their property. When the defendants arrived, PADDY and CLARK kicked in the front door and entered the residence along with OSTLUND and ROBERTSON. The defendants expected to find the victim inside the residence; however, the victim escaped by jumping out of a window. The defendants stole various items from the residence before leaving the property.
This case is the result of an investigation conducted by the FBI, the Red Lake Police Department, and the Bemidji Police Department.
Assistant U.S. Attorney Clifford B. Wardlaw tried the case.
Defendant Information:
SHANISE FRANCES OSTLUND, 29
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
KEVIN ROBERTSON, 32
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Latvian National Sentenced to Prison for “Scareware” Hacking Scheme That Targeted Minneapolis Star Tribune WebsiteRead the Press Release
A Latvian man was sentenced today in Minneapolis for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erica H. MacDonald of the District of Minnesota and Special Agent in Charge Jill Sanborn of the FBI’s Minneapolis Field Office made the announcement.
PETERIS SAHUROVS aka “Piotrek” and “Sagade,” 29, was sentenced to 33 months in prison for conspiracy to commit wire fraud. District Judge Ann D. Montgomery of the District of Minnesota imposed the sentence. SAHUROVS will be removed from the United States to Latvia following his prison sentence. SAHUROVS was arrested in Latvia on a District of Minnesota indictment in June 2011, but was released by a Latvian court and later fled. In November 2016, SAHUROVS was located in Poland, apprehended by Polish law enforcement, and extradited to the United States in June 2017. SAHUROVS was once the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction. He pleaded guilty before Judge Montgomery on February 7, 2018.
According to admissions made in connection with his plea, from at least May 2009 to June 2011, SAHUROVS operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline. The defendant admitted that he knew his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from Internet governance entities (such as Spamhaus) that his servers were hosting malicious activity. Nonetheless, SAHUROVS took steps to protect the criminal schemes from being discovered or disrupted, and hosted them on his servers for financial gain.
SAHUROVS admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website. On February 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com. Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware. This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure. Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.
Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.” Users who purchased “Antivirus Soft” received a file download that “unfroze” their computers and stopped the pop-ups and security notifications. However, the defendant admitted, the file was not a real anti-virus product, did not perform legitimate computer security functions, and merely caused the malware that members of the conspiracy had previously installed to cease operating. Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts” that all information, data, and files on their computers were rendered inaccessible. Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme. The defendant admitted that as a result of his participation, he made between $150,000 and $250,000 U.S. dollars.
This case was investigated by the FBI’s Minneapolis Field Office. The Criminal Division’s Office of International Affairs secured the extradition from Poland and the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance in this matter.
Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Defendant Information:
PETERIS SAHUROVS, 29
Rezekne, Latvia
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- 33 months in prison
- Removal from the United States to Latvia following the defendant’s prison sentence
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rochester Woman Sentenced to Two Years in Prison for Tax Fraud and Aggravated Identity TheftRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ROSA MARGARITA MALDONADO to two years and one day in prison for filing a false claim for tax refund and aggravated identity theft. MALDONADO pleaded guilty on April 19, 2018, and was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the documents filed in the case, MALDONADO filed false U.S. Individual Income Tax Returns for tax years 2011 and 2012 in her name that reported false dependents, claimed fraudulent Earned Income Tax Credits and Additional Child Tax Credits, and claimed tax refunds to which she was not entitled.
According to the documents filed in the case, MALDONADO stole a $7,712 tax refund from the U.S. Treasury for tax year 2012 and unlawfully used the names, Social Security numbers, and birth dates of two minor children in the course of that theft of public money.
This case is part of an investigation conducted by the Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, the Federal Bureau of Investigation, the United States Secret Service, and the Department of Treasury, Office of Inspector General.
This case was prosecuted by Assistant United States Attorney Allen A. Slaughter and U.S. Department of Justice Trial Attorney Christopher S. Strauss.
Defendant Information:
ROSA MARGARITA MALDONADO
Rochester, Minn.
Convicted:
- False, fictitious or fraudulent claims, 1 count
- Aggravated identity theft, 1 count
Sentenced:
- Two years and one day in prison
- One year of supervised release
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Chicago Man Charged with Lying to Federal Authorities After Alleged Fake Abduction ReportRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging ALEJANDRO MARIO CORTES, 45, with one count of making false statements to federal authorities after allegedly claiming he was abducted from his home in Chicago, Illinois earlier this spring. CORTES was arrested yesterday and made his initial appearance today before Magistrate Judge Jon T. Huseby in U.S. District Court in Saint Paul, Minnesota.
According to a criminal complaint, in the early morning hours of April 17, 2018, law enforcement officers responded to a report by a snowplow driver that he discovered a man near Randolph Avenue in St. Paul, Minnesota whose hands were bound and had duct tape over his mouth. Law enforcement officers located the individual, who later identified himself as CORTES.
CORTES told responding officers that he had been kidnapped from Chicago several days earlier by several unknown men. During the alleged abduction, CORTES claimed that a bag was put over his head, and he was held for several days and threatened with death. He further claimed that he was finally thrown out of a vehicle and into a snowbank after being told he would be killed if he contacted the police.
In a later meeting with FBI agents, CORTES further described his abduction, the circumstances surrounding his confinement, and details of the threats made against him and his family. CORTES claimed to have received threatening text messages, some in Spanish and some in English. These text messages made reference to CORTES’ relatives and included photos of his residence in Chicago.
During follow up interviews with CORTES, he admitted to FBI investigators that he often used false identities to avoid detection after a prior DUI arrest and was living illegally in the United States.
According to the complaint, law enforcement traced the alleged threatening text messages to Pinger, an online texting application, and determined the IP address used to create the text messages belonged to an associate of CORTES. After an interview with investigators, the associate indicated that CORTES faked his own kidnapping in ordered to be considered a crime victim so he could obtain a visa to stay in the United States and gain citizenship.
According to the complaint, CORTES asked the associate to facilitate the kidnapping, even asking the associate to allow him to stay in a storage facility with food, water, a sleeping bag and heater during his alleged abduction. To complete the abduction and kidnapping ruse, CORTES instructed the associate to place duct tape on his mouth and his wrists before dropping him off in St. Paul.
This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.
Assistant U.S. Attorney Angela Munoz-Kaphing is prosecuting the case.
Defendant Information:
ALEJANDRO MARIO CORTES, 45
Chicago, Ill.
Charged:
- False Statement or Representation Made to an Agency of the United States, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Founder of Wind Energy Company in Multi-Million Dollar Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of SHAWN ROBERT DOOLING, 52, for orchestrating a multi-million dollar wind energy fraud scheme. Following a six-day trial before U.S. District Judge Paul A. Magnuson, the jury found DOOLING guilty on all counts.
Assistant U.S. Attorney Surya Saxena said, “Mr. Dooling wanted to live a life of luxury without earning the money to pay for it, so he lied to and stole from people who trusted him, most of whom were hardworking farmers. Mr. Dooling will now be held accountable for his actions.”
“We are grateful for the work of the jury who deliberated this case and saw what we saw, and that was a scheme crafted by Mr. Dooling to defraud innocent and well intentioned investors of their hard earned money with the empty promise of energy efficiency that would never come to be,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI.
As proven at trial, in 2009, DOOLING founded Renewable Energy SD, LLC (“RESD”), a wind energy company headquartered in Excelsior, Minnesota. DOOLING, as the owner and president of RESD, marketed and sold wind turbines, as well as wind turbine installation and maintenance services, as a way for customers to save money by reducing or eliminating their energy expenses. RESD’s customers were predominantly farmers who owned and operated farms in Minnesota, Wisconsin, and Iowa. From approximately 2010 through 2013, DOOLING devised and executed a scheme to defraud his customers by falsely representing that for an agreed-upon contract price, RESD would build and maintain wind energy turbines on customers’ land. However, in reality, DOOLING spent his customers’ money on personal expenses and diverted their money to pay for other customers’ projects.
As part of the scheme, DOOLING told customers that he would send a portion of their money to a third-party manufacturer as a down payment to reserve a specific wind turbine. Then, when the wind turbine was completed and ready to be shipped, he would send the remaining portion of the money to the manufacturer to complete the purchase. DOOLING furthered his scheme by lying to customers about the status of their orders and told customers that RESD’s failure to deliver the wind turbines was due to manufacturer delays. As a result of his scheme, more than 70 customers paid a combined total of more than $13 million to DOOLING and his company and never received the promised wind turbines or a refund of their money. DOOLING withdrew approximately $2 million from RESD’s bank accounts over the course of the scheme for his personal use, including luxury automobile purchases, travel, and college tuition payments for his son.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Surya Saxena and Amber M. Brennan tried the case.
Defendant Information:
SHAWN ROBERT DOOLING, 52
Excelsior, Minn.
Convicted:
- Mail fraud, 3 counts
- Wire fraud, 1 count
- Engaging in a monetary transaction in criminally derived property, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Native Mob Gang Member Charged with Attempted Murder in Aid of Racketeering, Witness RetaliationRead the Press Release
United States Attorney Erica H. MacDonald today announced a six-count federal indictment against DAKOTA JAMES LAFAVE, aka “Biggs,” 29, for attempting to murder an individual in retaliation for their testimony given at an official court proceeding. LAFAVE, who was arraigned today in U.S. District Court in Saint Paul, Minnesota, will remain in detention pending further proceedings.
According to the allegations in the indictment, LAFAVE is 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 allegations in the indictment, on or about October 27, 2017, LAFAVE, using a firearm, attempted to murder an individual with the intent to retaliate against that person for their testimony given at an official court proceeding. LAFAVE, who was previously convicted of three violent felonies and is prohibited from possessing a firearm or ammunition at any time, is subject to the federal Armed Career Criminal Act, which carries a mandatory minimum of 15 years in prison if convicted.
This case is 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, and the Minnesota Department of Corrections. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to specifically target and combat gun and gang crimes.
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter.
Defendant Information:
DAKOTA JAMES LAFAVE, aka “Biggs,” 29
Fond du Lac, Minn.
Charges:
- Attempted murder in aid of racketeering, 1 count
- Assault with a dangerous weapon in aid of racketeering, 1 count
- Witness retaliation, 2 counts
- Using, carrying and discharging a firearm during and in relation to crimes of violence, 1 count
- Felon in possession of ammunition – armed career criminal, 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.
Twin Cities Bank Robber Pleads Guilty in Federal CourtRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JAYVON DOMINIQUE GANT, 28, to one count of bank robbery. GANT, who was charged by criminal complaint on June 7, 2018, entered his guilty plea before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, on June 7, 2018, GANT entered Premier Bank in Bloomington, Minnesota, and passed a note to the teller that contained a demand for money, followed by a verbal demand of the teller to, “give me all the money and no trackers.” In response to his demand, the teller handed GANT $3,710 and, after receiving the money, GANT fled the bank on foot. Following the robbery, law enforcement officers located GANT at his home in Bloomington. Upon law enforcement’s entry to the residence, GANT jumped from his third floor balcony to the second floor below and then broke the sliding glass door and entered the second floor apartment in an attempt to escape. When confronted by law enforcement on the second floor, GANT jumped from the second floor balcony to the ground level where he was apprehended.
According to his guilty plea and documents filed in court, GANT committed five additional robberies of other banks located throughout the Twin Cities area. In all instances, GANT used similar tactics by passing a note to the teller that contained a demand for money. For example, one such note stated, “Give me all the money out the top and bottom drawer act calm and normal NO Gps or Dypack Im going to go through the money at this counter so don’t play games with me give me the money act normal no one will get hurt.”
This case is the result of an investigation conducted by the FBI Safe Streets Task Force, the Bloomington, Blaine, Fridley, Edina, Cottage Grove and Oakdale Police Departments. 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 Charles J. Kovats.
Defendant Information:
JAYVON DOMINIQUE GANT, 28
Bloomington, Minn.
Convicted:
- Bank robbery, 1 count
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Minnesota Attorney Pleads Guilty to Federal Charges in Connection with Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
United States Attorney Erica MacDonald today announced the guilty plea of PAUL R. HANSMEIER, 37, 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 pleaded guilty to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. On March 6, 2017, HANSMEIER’S co-defendant JOHN L. STEELE pleaded guilty for his role in the scheme.
“This scheme, orchestrated by licensed attorneys, caused widespread damage throughout the United States and wasted judicial resources by causing litigation that should never have happened,” said U.S. Attorney MacDonald. “The defendants’ actions brought embarrassment to the legal profession and amounted to a shameful abuse of their law licenses, only to satisfy their greed. This office is and will always be dedicated to bringing such disgraceful conduct to the bar of justice.”
“Paul Hansmeier’s guilty plea today closes a sad chapter in the career of an attorney who abused his license to practice law and disgraced the bar,” said Special Agent in Charge of the Minneapolis Division Jill Sanborn. “Hansmeier’s role in a brazen multi-million dollar fraud scheme exploited victims by misusing his position of trust as an officer of the court. The FBI will continue to work closely with our law enforcement partners to detect crimes such as this and bring the perpetrators to justice.”
“The role of IRS Criminal Investigation becomes even more important in financial cases, including extortion and money laundering schemes, because of the complex financial transactions that take time to unravel,” said Gabriel Grchan, Acting Special Agent in Charge, St. Paul Field Office. “IRS Special Agents are skilled at investigating all types of financial crimes and today's guilty plea of Paul Hansmeier is a reminder that IRS Criminal Investigation is committed to following the money trail.”
According to his guilty plea and documents filed in court, between 2010 and 2014, HANSMEIER and STEELE, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who supposedly downloaded pornographic movies from file-sharing websites. HANSMEIER admitted in court today that he and STEELE created a series of sham entities, which and STEELE 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.
In November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, HANSMEIER and STEELE admitted that they created and used Prenda Law, among other law firms, to pursue their fraudulent claims and proceeds of the scheme. HANSMEIER acknowledged in court today that he and STEELE exerted de facto control over Prenda Law throughout the scheme.
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” who were sued in exchange for HANSMEIER and STEELE waiving their settlement fees while pursuing claims against their supposed “co-conspirators.” In court today, HANSMEIER admitted that the allegations of “hacking” in these complaints were made up.
In total, HANSMEIER and STEELE obtained approximately $6 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 Langner and David Maclaughlin of the District of Minnesota and Senior Trial Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and are prosecuting 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
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Willmar Man Pleads Guilty to Federal Charges Related to Illegal Cache of Machine Guns, Pipe Bombs, SilencersRead the Press Release
United States Attorney Erica H. MacDonald announced the guilty plea of CHAD LEE MONSON, 46, for illegally possessing machine guns, pipe bombs, and silencers. MONSON, who was indicted on June 5, 2018, entered his guilty plea today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. A sentencing hearing is yet to be scheduled.
U.S. Attorney MacDonald thanked the ATF and CEE-VI Gang and Drug Task Force investigators for their skilled work in the case and for making the Willmar community a safer place.
According to the defendant’s guilty plea and documents filed in court, on January 30, 2018, law enforcement officers executed a search warrant at MONSON’S residence in Willmar, Minnesota. Inside the residence, officers found personal use amounts of illegal narcotic drugs, as well as sixteen firearms, and a large quantity of ammunition. On February 21, 2018, law enforcement officers executed two additional search warrants at a commercial utility building near MONSON’S residence. There, officers found ten machine guns, two of them with obliterated serial numbers, three pipe bombs, and three unregistered silencers. MONSON admitted to owning the weapons and acknowledged that he knew that the machine guns had been illegally converted to be capable of firing in “fully automatic” mode. As part of his guilty plea, MONSON must forfeit to the United States 12 firearms, three pipe bombs, and three silencers.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the CEE-VI Gang and Drug Task Force, with assistance from the Kandiyohi County Attorney’s Office.
Assistant United States Attorney John Docherty is prosecuting the case.
Defendant Information:
CHAD LEE MONSON, 46
Willmar, Minn.
Convicted:
- Possession of a machine gun, 1 count
- Possession of an unregistered destructive device (pipe bomb), 1 count
- Possession of an unregistered silencer, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600