District of Minnesota
Press releases recorded for this federal judicial district.
St. Cloud Man Indicted for Stealing More Than $350,000 from Minnesota BreweryRead the Press Release
United States Attorney Andrew M. Luger today announced a superseding indictment charging ADAM JONATHAN MARTIN, 35, for stealing more than $350,000 from a brewery at which he worked, and for fraudulently obtaining an additional $330,000 from purported investors in a fraudulent investment scheme. MARTIN is charged with six counts of wire fraud, three counts of monetary transactions in criminally derived property, and one count of aggravated identity theft.
According to the superseding indictment, while MARTIN was a controller at a Minnesota-based brewery, he stole more than $350,000. After MARTIN left the company in November of 2014, an investigation revealed that in December 2011, MARTIN allegedly transferred more than $240,000 from the company’s business checking account to a business brokerage account that MARTIN opened and controlled.
According to the superseding indictment, MARTIN used his sister-in-law’s name and personal identifying information to open the aforementioned business brokerage account. He listed the name of the business entity on the account as “DCI Change” and characterized his sister-in-law as the “director” of DCI Change.
According to the superseding indictment and documents filed in court, MARTIN used the fraudulently obtained funds for various personal expenses, including to make a $106,000 down payment on a new home. MARTIN also allegedly used his employer’s credit card to pay for $78,000 worth of personal expenses, including on an all-inclusive vacation resort. Finally, the investigation revealed that MARTIN had allegedly stolen $30,000 in cash from the brewery.
According to the superseding indictment and documents filed in court, MARTIN also was involved in a separate Ponzi scheme in which he defrauded friends, relatives, and acquaintances out of more than $330,000, claiming he would make legitimate investments. Instead, he used the victims’ money to pay for personal expenses and to pay off previous investors.
A trial is scheduled for August 29, 2016.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorney John Kokkinen.
Defendant Information:
ADAM JONATHAN MARTIN, 35
St. Cloud, Minn.
Charges:
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Wire fraud, 6 counts
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Money laundering, 3 counts
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Aggravated identity theft, 1 count
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Former Minnesota National Guardsman Sentenced to 210 Months in Prison for Production of Child PornographyRead the Press Release
A former Minnesota National Guardsman was sentenced today to 210 months in prison for inducing a 14-year-old girl to create and send to him sexually explicit photos over the Internet while he was deployed to Afghanistan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
Andrew Schiller, 28, of Lakeville, Minnesota, was sentenced by U.S. District Judge Susan Richard Nelson of the District of Minnesota, who ordered that he also serve a lifetime term of supervised release and pay restitution to the victim. Schiller pleaded guilty to one count of production of child pornography on Sept. 10, 2015.
According to his guilty plea, between Sept. 23, 2013, and Jan. 12, 2014, while deployed to Afghanistan, Schiller contacted a 14-year-old female from Minnesota online and requested that she create and forward to him via the internet sexually explicit photos of herself. The victim did, in fact, send several images in response to Schiller’s requests, including at least one sexually explicit image. Schiller further admitted that he communicated online with numerous other minors and that he attempted to convince the minors to send to him sexually explicit videos or images of themselves.
The Army Criminal Investigative Division and FBI investigated the case. Trial Attorney Jeffrey H. Zeeman, formerly of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
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.
German Shipping Company Pleads Guilty to Covering up Illegal Dumping of Oily Waste Water into Great LakesRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH (“MST”), a German company and operator of the M/V Cornelia, with violating the Act to Prevent Pollution from Ships (APPS) by failing to maintain an accurate ship record about the disposal of oil-contaminated waste. MST pleaded guilty today before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
"Lake Superior is a vital part of Minnesota’s natural environment," said Assistant United States Attorney John Kokkinen. "The criminal fine and community service payment imposed by the Court provide a strong deterrent to future would-be polluters and significant funding to preserve and protect Lake Superior for future generations. This case was made possible by the excellent work of members of the United States Coast Guard who served as critical partners throughout this investigation."
"This case is an excellent example of the Coast Guard's and Department of Justice's commitment to holding shipping companies and crews accountable for non-compliance with International and U.S. environmental laws and regulations," said Rear Adm. June Ryan, commander of the Coast Guard 9th District. "Part of the terms of the plea agreement provide future protections for the pristine waters of the Great Lakes, a noteworthy outcome in the continued partnership between the U.S. Attorney's Office and the Coast Guard throughout the Great Lakes, in particular the U.S. Attorney's Office in Minnesota."
"The oceans and our inland waterways cannot be used as dumping grounds," said Jeff Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Minnesota. "Today’s sentencing should send a clear message to would-be violators that the American people will not allow U.S. environmental laws to be violated, adversely affecting both public health and marine life."
According to the defendant’s guilty plea and documents filed in court, from February 2015 through October 2015, the M/V Cornelia, a German-owned commercial vessel, experienced significant leakages of oily waste-water. As a result, the M/V Cornelia was accumulating a substantial volume of machinery space bilge water.
On at least ten occasions, the M/V Cornelia’s Chief Engineer and/or Second Engineer instructed members of the engine room crew to transfer machinery space bilge water from the dirty bilge tank to the clean bilge tank, which is a separate tank that is supposed to contain only clean, oil-free water, and then discharge the oily waste-water overboard. At least one occasion when machinery space bilge water was transferred to the clean bilge tank and then discharged overboard occurred in approximately May 2015 while the ship was in the Great Lakes.
On each occasion in which oily waste-water was transferred internally and then discharged overboard, the Chief Engineer intentionally failed to record the transfers and subsequent discharges of oily waste-water in the M/V Cornelia’s Oil Record Book (ORB). This gave the false impression in the ORB that all of the oily waste-water had been properly handled and disposed.
On November 3, 2015, the M/V Cornelia called upon the Port of Duluth to load grain for transport to Africa. At that time, U.S. Coast Guard inspectors boarded the vessel to conduct a Port State Control examination and were presented with the M/V Cornelia’s ORB containing the omissions and false entries.
As a condition of the defendant’s guilty plea, MST will be required to pay an $800,000 criminal fine to the United States. In addition to the criminal fine, MST will be required to make a community service payment of $200,000 to support the protection and preservation of Lake Superior and the Lake Superior watershed.
As an additional condition of the defendant’s guilty plea, MST will serve three years of probation, during which time the organization must commit no further violations of the International Convention for the Prevention of Pollution from Ships (MARPOL), federal, state or local law. In addition, MST must fund and implement an Environmental Compliance Plan (ECP) for all vessels that it operates which call at ports or places in the United States.
This case is the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency.
This case was prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and John Kokkinen.
Defendant Information:MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH
Schnaittenbach, GermanyConvicted:
• Violation of the Act to Prevent Pollution from Ships, 1 countSentenced:
• $800,000 criminal penalty
• $200,000 community service payment
• 3 years of probationBrooklyn Park Man Sentenced to Ten Years in Prison for Sex Trafficking of A Teenage GirlRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of MYKEL LAMAR HARRIS, 25, for trafficking a teenage girl who he sold for sex. HARRIS, who pleaded guilty on January 25, 2016, was sentenced Thursday before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
“Sex trafficking is not just an international or national problem—it is also a local one,” said Assistant United States Attorney Laura M. Provinzino. “The U.S. Attorney’s Office is committed to protecting the children of Minnesota from commercial sexual exploitation by prosecuting those who harm children. We urge members of the community to continue to contact law enforcement when children are in danger.”
According to the defendant’s guilty plea, in September 2013, HARRIS used Facebook to recruit a teenage girl who was in high school at the time, to commit sex acts in exchange for money. HARRIS took partially nude photos of the victim and used them to advertise the victim on a backpage.com post linked to his personal email account. Over a three-day period in December 2013, HARRIS sold the victim for sex at a hotel in Roseville, Minn. Customers were charged $150 for a half hour and $250 for an hour. HARRIS took all of the money the victim collected for those sexual encounters.
According to documents filed in court, HARRIS again caused the victim to engage in commercial sex in January, February and April 2014, during which time she missed days of high school and at her legitimate place of employment. HARRIS used the victim’s own debit card to rent hotel rooms in which he sold her for sex.
The successful prosecution resulted from an anonymous tip handwritten on a backpage.com advertisement. Based on the victim’s photographs, the tipster reported: “I am as sure as I can be ‘this is a child.’ Please do something!”
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
This case is the result of an investigation conducted by the Saint Paul Police Department and Homeland Security Investigations.
Defendant Information:
MYKEL LAMAR HARRIS, 25
Brooklyn Park, Minn.
Convicted:
- Sex trafficking of a minor, 1 count
Sentenced:
- 120 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Jordan Davis Convicted of Conspiring to Steal Money from Community Action of MinneapolisRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of JORDAN JAMES DAVIS, 35, for conspiring with his father, WILLIAM JAMES DAVIS, to steal funds from Community Action of Minneapolis (CAM). JORDAN DAVIS was convicted today after a jury trial before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn. WILLIAM DAVIS pleaded guilty on June 16, 2016 to all of the charges against him.“Jordan Davis took more than $140,000 in salary that he did not earn,” said Assistant United States Attorney Kimberly A. Svendsen. “The agreement this defendant made with his father to steal from CAM destroyed opportunities for underprivileged youth to learn valuable job skills. I am thankful to the jury for the time and attention they gave to this case, and hope that this verdict brings some measure of justice for those harmed by Jordan Davis’ crimes.”
As proven at trial, WILLIAM DAVIS used CAM funds to pay his son JORDAN DAVIS for a no-show job at a Ben & Jerry’s ice cream shop operated by CAM as a PartnerShop near the University of Minnesota campus in Minneapolis. Ben & Jerry’s waived its standard franchise fees so that CAM could operate the store to provide job and entrepreneurial training to underprivileged youth facing barriers to employment.
As proven at trial, between 2002 and October 2006, JORDAN DAVIS worked as the manager of the Ben & Jerry’s PartnerShop. In October 2006, JORDAN DAVIS obtained employment with the Minneapolis Police Department, and thereafter stopped working at the Ben & Jerry’s.
As proven at trial, WILLIAM DAVIS instructed CAM’s fiscal staff to continue issuing JORDAN DAVIS the full paycheck he had been receiving for managing the ice cream shop. Even though JORDAN DAVIS never again worked a shift at the Ben & Jerry’s, from at least March 2007 until January 2011, he continued to receive his full paycheck, $1,320 biweekly. In fact, while DAVIS was receiving paychecks for his no-show job, CAM hired four other managers for the Ben & Jerry’s store, three of whom were paid less in the full-time jobs than JORDAN DAVIS received for his no-show role.
As proven at trial, during the time JORDAN DAVIS was receiving a paycheck for his no-show job, the Ben & Jerry’s store was consistently losing money, forcing CAM to transfer approximately $100,000 in federal grant funds each year in order to keep the doors open.
As proven at trial, WILLIAM DAVIS also gave JORDAN DAVIS a CAM vehicle for his personal use, and JORDAN DAVIS also had a Ben & Jerry’s debit card that he used to pay personal expenses such as gas and cell phone bills.
In April 2011, CAM closed the Ben & Jerry’s PartnerShop because CAM could no longer afford the rent for the store, and CAM terminated its youth job skills training program.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of Health and Human Services Office of the Inspector General, Internal Revenue Service – Criminal Investigation and the United States Department of Energy Office of the Inspector General.
This case is being prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Amber M. Brennan.
Defendant Information:JORDAN JAMES DAVIS, 35
Ostego, Minn.Convicted:
• Conspiracy to commit theft concerning programs receiving federal funds, 1 count
• Mail fraud, 5 countsSt. Paul Man Pleads Guilty to Naturalization, Tax FraudRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced the guilty plea of MUHAMMED FATTY, 41, to multiple charges related to tax refund fraud and fraudulently obtaining U.S. citizenship. On June 15, 2016, FATTY pleaded guilty before Judge Donovan W. Frank to one count of unlawful procurement of naturalization and one count of making false claims in relation to tax refunds.
“Investigating refund fraud is a top priority for IRS Criminal Investigation,” said IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office. “Filing false tax returns is a serious crime that hurts innocent taxpayers. Law enforcement and the United States Attorney’s Office are serious about investigating these crimes and holding accountable those who defraud the government and taxpayers.”
According to documents filed in court, law enforcement became aware of the defendant’s scheme when U.S. Department of State consular officials identified a visa applicant using the same name as an individual already in the U.S., who had previously naturalized in 2013.
According to the defendant’s guilty plea and documents filed in court, in January 2015, FATTY devised a scheme in which he prepared and electronically filed a false tax return using the name and social security number of another person and knowingly made and presented to the Internal Revenue Service a claim for refund in the amount of $9,332. From 2006 until 2015, the defendant falsely used the name and Social Security number of another person and fraudulently claimed and received tax refunds from the United States in the amount of $46,109. In addition, as of May 2016, under the defendant’s true name and Social Security number, the defendant owed the Internal Revenue Service $7,407 in back taxes and fees.
According to the defendant’s guilty plea and documents filed in court, FATTY attempted to obtain medical assistance by fraudulently using the name and social security number of another person. FATTY has fraudulently received approximately $7,857 in benefits, involving premiums paid by the State of Minnesota.
This guilty plea resulted from an investigation by the U.S. Department of State’s Diplomatic Security Service (DSS), the Internal Revenue Service’s (IRS) Criminal Investigation Division and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Special Assistant United States Attorney Ryan R. Wood is prosecuting the case.
Defendant Information:
MUHAMMED FATTY, 41
Little Canada, Minn.
Convicted:
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Unlawful procurement of naturalization, 1 count
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Making a false, fictitious or fraudulent claim, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Former CEO of Community Action of Minneapolis Pleads Guilty to 16-Count Indictment for Conspiracy, Fraud and Theft of Public FundsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of WILLIAM JAMES DAVIS, 65, for conspiring to steal funds from Community Action of Minneapolis (CAM). DAVIS pleaded guilty today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
“Improving people’s lives was the mission of Community Action of Minneapolis,” said U.S. Attorney Luger. “Instead, Bill Davis stole from those in need to line his own pockets. The evidence of fraud was overwhelming, and the defendant’s guilty plea to all of the charges against him is a just result.”
According to the defendant’s guilty plea, CAM’s primary funding sources included federal grants administered by the Minnesota Department of Commerce and Minnesota Department of Human Services. CAM also received funding from CenterPoint Energy and Xcel Energy in exchange for providing certain conservation and weatherization services to qualifying homeowners.
According to his guilty plea, DAVIS concealed his diversion of CAM funds to his personal use by charging the majority of his CAM-paid personal expenses to a slush fund on CAM’s books that was not subject to the same oversight as CAM’s state and federal grant proceeds. DAVIS could therefore instruct CAM’s fiscal staff to charge personal expenses to this slush fund with less risk of detection.
According to his guilty plea, DAVIS concealed from CAM’s Board of Directors that he was using his position as CAM’s CEO to divert CAM funds to his personal use and that of his family and friends.
According to his guilty plea, between March 2007 and October 2014, DAVIS diverted at least $5,000 per year in CAM funds intended to be used to provide services to low-income residents of Minneapolis to his own personal use and the use of his family and friends, including JORDAN DAVIS. As part of the scheme, DAVIS used CAM funds for personal expenses, including airline tickets, hotel stays, rental cars and a Caribbean cruise.
According his guilty plea, DAVIS also used CAM funds to pay for his personal vehicle, a 2011 Chrysler 300. In May 2011, DAVIS traded in a 2005 Chrysler 300 owned by CAM. He then used the $10,079.53 in proceeds from the trade-in of the CAM vehicle and $36,430 in additional CAM funds to buy a new car for himself.
According to his guilty plea, DAVIS also used CAM funds to pay his son JORDAN DAVIS for a no-show job at a Ben & Jerry’s ice cream shop operated by CAM as a PartnerShop near the University of Minnesota campus in Minneapolis. Ben & Jerry’s waived its standard franchise fees so that CAM operated the store to provide job and entrepreneurial training to underprivileged youth facing barriers to employment.
According to the defendant’s guilty plea, between 2002 and October 2006, WILLIAM DAVIS’s son JORDAN DAVIS worked as the manager of the Ben & Jerry’s PartnerShop. In October 2006, JORDAN DAVIS obtained employment with the Minneapolis Police Department, and thereafter stopped working at the Ben & Jerry’s.
According to the defendant’s guilty plea, DAVIS instructed CAM’s fiscal staff to continue issuing JORDAN DAVIS the full paycheck he had been receiving for managing the ice cream shop. From at least March 2007 until January 2011, J. DAVIS continued to receive his full paycheck, $1,320 biweekly, for his work at the Ben & Jerry’s, even though he was doing no work for the ice cream shop.
In April 2011, CAM closed the Ben & Jerry’s PartnerShop because CAM could no longer afford the rent for the store, and CAM terminated its youth job skills training program.
In October 2013, the Minnesota Department of Human Services (DHS) began an audit intended to determine whether CAM was using the federal and state grant funds that it received through DHS in accordance with the applicable contracts. DHS personnel sought documents and information about the purposes of various CAM expenditures.
According to the defendant’s guilty plea, DAVIS sent correspondence to the Commissioner of DHS containing false material representations about his personal travel.
On October 13, 2014, W. DAVIS was suspended from his position as CEO without pay.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of Health and Human Services Office of the Inspector General, Internal Revenue Service – Criminal Investigation and the United States Department of Energy Office of the Inspector General.
This case is being prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Amber M. Brennan.
Defendant Information:WILLIAM JAMES DAVIS, 65
Brooklyn Park, Minn.Convicted:
• Conspiracy to commit theft concerning programs receiving federal funds, 1 count
• Mail fraud, 10 counts
• Wire fraud, 1 count
• Theft concerning programs receiving federal funds, 4 countsSeng Xiong Indicted for Defrauding Hmong EldersRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging SENG XIONG, 48, with wire and mail fraud for operating an affinity scheme targeting Hmong elders. XIONG was arrested on Thursday, March 24, 2016, at Los Angeles International Airport, prior to boarding a flight bound for Thailand.
According to the Indictment, XIONG was conducting a fraud scheme through his organization “Hmong Tebchaws,” in which Hmong elders were being directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, victims were allegedly promised 10 acres of land, a house, and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.
According to the Indictment, XIONG claimed to be working with the White House and United Nations to establish the new Hmong country. He also claimed that a piece of land had already been set aside for the Hmong people somewhere in Southeast Asia.
According to the Indictment, XIONG offered several “investment” options which purported to represent varying levels of return that “founders” would be able to receive on their investment in the new country. Investments between $3,000 and $5,000 would guarantee the “investor” and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age, as well as a return on that investment equal to a percentage of the income generated by the new Hmong country. Those who could not afford the $3,000 - $5,000 “founders” option could pay $20 per month, or $240 per year, which would secure their spot in the new Hmong country along with some of the benefits, although those who “enrolled” at that level would not receive a return on their investment.
If you or someone you know could be a victim, please contact the Minnesota Financial Crimes Task Force by sending an email to [email protected].
This case is the result of an investigation conducted by the Minnesota Financial Crimes Task Force, Saint Paul Police Department, United States Secret Service, Federal Bureau of Investigation and Appleton Police Department.
Special assistance was provided by the United States Attorney’s Offices for the Eastern District of California.
This case is being prosecuted by Assistant United States Attorney Amber M. Brennan.
Defendant Information:SENG XIONG, 48
Maplewood, Minn.Charges:
• Wire fraud, 1 count
• Mail fraud, 1 countGolden Valley Man Convicted of Leading Multi-Million Dollar Cell Phone Trafficking ConspiracyRead the Press Release
United States Attorney Andrew M. Luger and Special Agent in Charge of the United States Secret Service Minneapolis Division Louis Stephens today announced the conviction of ZIBO LI, 31, for conspiring to traffic in stolen cell phones. LI led a conspiracy to traffic more than $3.8 million in stolen cellular devices throughout the United States and Hong Kong.
“Zibo Li led an organization that used the stolen identities of ordinary people to perpetrate a multi-million-dollar fraud,” said Assistant United States Attorney Manda M. Sertich. “Honest consumers bear the cost of the illegal activity of retail thieves like Li and his conspirators. We would like to thank the jury for its service during this trial and for returning a just verdict.”
“At its core, this case is about widespread identity theft, contact fraud and financial crimes,” said Louis Stephens, Special Agent in Charge of the United States Secret Service Minneapolis Field Office. “The collaborative approach of talented local and federal law enforcement officers and prosecutors ended a multi-year criminal conspiracy adept at widespread victimization of Minnesota based victims and businesses.”
As proven at trial, between 2011 and 2014, ZIBO LI and eight co-conspirators fraudulently obtained mobile cellular devices for steeply reduced rates by entering into service contacts, often using stolen identities. ZIBO LI ultimately sold the stolen merchandise to contacts in Hong Kong, where a new Apple iPhone could, at the time of the conspiracy, retail for as much as $2,000.
As proven at trial, three co-conspirators who have already pleaded guilty served as middlemen in LI’s organization. They purchased stolen or fraudulently obtained phones from buyers, and subsequently sold them to ZIBO LI. LI paid the middlemen in cash and by depositing cash directly into their bank accounts.
As proven at trial, buyers for the organization were responsible for obtaining discounted phones from retailers by agreeing to a two-year service contract. Among the methods employed to obtain phones was “credit muling,” a scheme through which buyers, or those acting at their direction, signed cellular telephone service contracts, often using stolen identities, to obtain reduced cost phones in other people’s names, but never intended to or did honor those contracts. Some of the buyers also recruited people residing in homeless shelters to sign up for cell phone contracts and obtain reduced cost phones, in exchange for nominal payments or goods.
This case is the result of an investigation conducted by the United States Secret Service, Saint Paul Police Department, Minnesota Bureau of Criminal Apprehension, Minnesota Financial Crimes Task Force, University of Minnesota Police Department, and Plymouth Police Department.
This case is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Steven L. Schleicher.
Defendant Information:ZIBO LI, 31
Golden Valley, Minn.Convicted:
• Conspiracy to traffic unauthorized access devices, 1 count
• Fraud and related activity in connection with access devices, 2 countsFlorida Man Sentenced to 210 Months in Prison for Orchestrating A Multi-Million Dollar Income Tax Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of FRANTZ PIERRE, 36, for orchestrating a multi-million dollar tax fraud scheme and engaging in money laundering. PIERRE, who pleaded guilty on October 27, 2015 to counts one and two of the indictment, was sentenced on June 9, 2016 before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
"Today's announcement regarding the 210 month sentencing of Frantz Pierre exemplifies IRS Special Agents' intense focus and rigorous pursuit of identity theft and refund fraud crimes," said Shea Jones, Special Agent in Charge of IRS Criminal Investigation, St. Paul Field Office. “Individuals such as Frantz Pierre who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law.”
According to documents filed in court, from July 2010 through May 2011, PIERRE was the leader and organizer of a scheme to steal from the federal government by filling hundreds of fraudulent income tax returns. PIERRE and his co-conspirators used stolen social security numbers and other personal identifiers as well as fabricated employment and income information to complete hundreds of income tax returns and to claim millions of dollars in fraudulent tax refunds.
According to documents filed in court, as part of the scheme, PIERRE and his co-conspirators would establish fictitious tax preparation businesses and then open multiple bank accounts in the names of the fictitious businesses. In addition, PIERRE directed the IRS to deposit the fraudulently obtained income tax refunds into the bank accounts set up by the defendant and his co-conspirators. In total, PIERRE and his co-conspirators submitted approximately 776 fraudulent tax returns to the IRS, resulting in $5,249,935 in tax refunds to be deposited into the fictitious companies’ bank accounts.
As part of his sentence, PIERRE was ordered to forfeit his house in Parkland, Florida and pay $906,556 in restitution.
This case was prosecuted by Assistant U.S. Attorneys Joseph Thompson and Lola Velazquez-Aguilu.
This case is the result of an investigation conducted by the Internal Revenue Service- Criminal Investigation Division.
Defendant Information:
FRANTZ PIERRE, 36
Parkland, FL
Convicted:
- Conspiracy to Defraud the Government, 1 count
- Money Laundering, 1 count
Sentenced:
- 210 months in prison
- $906,556 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Serial Fraudster Indicted for Investment Advisor Fraud and Money LaunderingRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging RANDY MILAND, 62, for operating a Ponzi scheme through which he stole or attempted to steal more than $500,000 from purported investors. MILAND made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
“IRS-Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes. We will vigorously pursue those individuals who victimize investors and violate the public trust," said Special Agent in Charge Shea Jones of the IRS-Criminal Investigation Division of the St. Paul Field Office. "The indictment of Randy Miland demonstrates the government's determination to restore and ensure that trust.”
“As the indictment alleges, Randy Miland is a serial scam artist with no regard for his victims,” said Minnesota Commerce Commissioner Mike Rothman. “He used fake investments to steal people’s life savings before, and now he’s done it again. The Commerce Fraud Bureau worked with federal authorities to stop his fraudulent schemes and protect Minnesotans.”
According to the indictment and documents filed in court, in 1999, MILAND was convicted in state court of theft by swindle and ordered to pay more than $1.5 million in restitution to the victims of his scheme. As of May 2016, MILAND still owed to the victims nearly the entire amount.
According to the indictment and documents filed in court, in 2006, MILAND was convicted of fraud in federal court and ordered to pay more than $250,000 in restitution to the victims. As of May 2016, MILAND owed approximately $124,000 in restitution.
According to the indictment and documents filed in court, between 2010 and 2014, MILAND fraudulently solicited approximately $575,000 from investors, telling them that he would use their money to invest in futures and other legitimate investments. Instead, he used their money to pay personal expenses, including court-ordered restitution to victims of his prior scams, and to make Ponzi-type payments to other purported investors.
According to the indictment and documents filed in court, MILAND concealed from the new victims that he had been twice convicted of fraudulent conduct, that he was forbidden by the Minnesota Department of Commerce from offering or selling securities, and that he still owed more than $1.5 million in restitution to victims of prior schemes.
The case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Commerce Fraud Bureau.
Defendant Information:
RANDY MILAND, 62
White Bear Lake, Minn.
Charges:
- Mail fraud, 5 counts
- Money laundering, 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 allegations, and the defendant is presumed innocent unless and until proven guilty.
Antiques Dealer Pleads Guilty to Smuggling Elephant IvoryRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of JAY ANTHONY ANDERSON, 66, for smuggling elephant ivory from the United States in violation of the Lacey Act. ANDERSON, who was charged on May 16, 2016, pleaded guilty to knowingly importing and exporting objects made from elephant ivory in violation of the laws and regulations of the United States, including the Lacey Act and the Endangered Species Act. A sentencing date has not yet been set.
According to the defendant’s guilty plea and documents filed in court, on June 10, 2011, ANDERSON, knowingly attempted to export an object made from elephant ivory, described as a “CARVED CHINESE IVORY FIGURE OF A [sic] ELDER FISHERMAN,” to a buyer located in Foshan City, China for approximately $1,356.00. ANDERSON attempted to export the elephant ivory through the United States Postal Service declaring the object as “RESIN CARVINGS” valued at $30.00, when in fact the defendant knew the object was made from elephant ivory and held a much higher monetary value. On June 23, 2011, U.S. Fish and Wildlife Service officials inspected and intercepted the package at an International Mail Facility in Chicago, Ill.
According to the defendant’s guilty plea and documents filed in court, from January 29, 2012 through December 31, 2012, ANDERSON knowingly violated the laws and regulations of the United States by buying and selling an object made from elephant ivory with a market value of more than $350.00. Specifically, on January 29, 2012, ANDERSON purchased an object made from elephant ivory described as “IVORY HANd [sic] CARVED CRUCIFIX circa 1920” from an auction house in Montreal, Canada for approximately $300.00. ANDERSON subsequently sold the elephant ivory object for approximately $700.00, describing it as an “18th/19th CENTURY IVORY & EBONY EUROPEAN CRUCIFIX.” At the time the elephant ivory object was purchased and imported, ANDERSON failed to submit a declaration to USFWS, as required by law.
The fair market value of the illegal elephant ivory products documented in this case was between $40,000 and $95,000.
"Thanks to the diligent interdiction work of our Chicago-based wildlife inspectors, our special agents can build quality cases like these and stop those who try to illegally profit from the tusks of elephants,” said Edward Grace, the Service’s Deputy Assistant Director for Law Enforcement. “We will continue to investigate these crimes until ultimately elephants are brought back from the brink of extinction,” continued Grace.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
This case is the result of an investigation by the U.S. Fish and Wildlife Service and is being prosecuted by Assistant U.S. Attorney Andrew S. Dunne.
Defendant Information:
JAY ANTHONY ANDERSON, 66
Wabasha, Minn.
Convicted:
- Smuggling, 1 count
- Violation of the Lacey Act, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Jury Trial Results in Conviction of Three Minnesotans for Conspiring to Join ISIL and Commit Murder in SyriaRead the Press Release
GULED ALI OMAR, ABDURAHMEN YASIN DAUD, and MOHAMED ABDIHAMID FARAH were convicted by a federal jury today of conspiring to commit murder in Syria on behalf of the Islamic State of Iraq and the Levant (ISIL) and to provide material support to the designated foreign terrorist organization.
The convictions were announced by U.S. Attorney Andrew M. Luger, Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division, and Assistant Attorney General for National Security John P. Carlin.
“The evidence in this case made clear that the defendants made a deeply personal and deliberate decision back in 2014,” said United States Attorney Andrew Luger. “They wanted to fight for a brutal terrorist organization, kill innocent people and destroy their own families in the process. This trial should serve as a wake-up call that it will take the entire community to stop terror recruiting in Minnesota.”
“These verdicts affirm the FBI's investigative efforts,” said Special Agent in Charge Richard T. Thornton. “The FBI will not induce people to break our laws. However, the FBI, through all legal means at its disposal, will investigate and pursue those who aim to bring about harm to others.”
“In the first multi-defendant ISIL-related trial, Mohamed Farah, Abdirahman Daud and Guled Omar were convicted of conspiring to provide material support to the foreign terrorist organization and other federal offenses,” said Assistant Attorney General Carlin. “The defendants conspired with a larger group of individuals to travel to Syria to fight on behalf of ISIL. Countering terrorist threats remains the highest priority of the National Security Division. We will continue to work to disrupt the recruitment and radicalization of Americans by terrorist organizations, and bring to justice those who conspire to provide material support to terrorists. I would like to thank the many agents, analysts and prosecutors who worked tirelessly to secure this conviction.”
Between May 2014 and their arrests on April 19, 2015, these three defendants and their co-conspirators made multiple attempts to join the Islamic State of Iraq and the Levant (ISIL) in Syria.In May 2014, some members of the conspiracy, including defendant GULED OMAR and co-conspirators ABDI NUR, ABDULLAHI YUSUF, traveled or attempted to travel to Syria to join ISIL. To facilitate the travel of his co-conspirators, defendant DAUD provided contact information for an ISIL member in Turkey to NUR and YUSUF so they could gain assistance crossing the border from Turkey into Syria. NUR succeeded in his plan, joining ISIL in Syria in June 2014. YUSUF was stopped at the Minneapolis/ St. Paul Airport and was later arrested.
Also in May 2014, defendant OMAR and two other members of the conspiracy made an attempt to join ISIL by traveling across the United States – Mexico border near San Diego. This planned failed when members of defendant OMAR’s family prevented his travel.
In October 2014, members of conspiracy communicated with “Antar,” a self-described member of ISIL in Syria, about how best to travel to Syria to join ISIL. Members of conspiracy met with one another to discuss routes, methods and the timing of leaving the United States to join ISIL in Syria.
Defendant OMAR again attempted to join ISIL in Syria on November 6, 2014, by first flying from Minneapolis/St. Paul International Airport to San Diego, California. Again, defendant OMAR planned to cross the United States – Mexico border near San Diego and travel onward to Syria to join ISIL. Before he could board the flight in Minnesota, OMAR was stopped at the airport and prevented from boarding the plane. In order to fund this second attempt to join ISIL in Syria, OMAR intended to use federal financial aid provided to him by the United States Department of Education to attend college.
Also in November 2014, defendant FARAH and three of his co-conspirators, defendants ZACHARIA ABDURAHMAN, HANAD MUSSE, and HAMZA AHMED, took a Greyhound bus to New York City and attempted to board flights to Europe. Defendant FARAH’s ultimate destination was Syria, where he planned to join and fight with ISIL. Federal agents in New York prevented defendant FARAH and his three co-conspirators from traveling.
In April 2015, defendants DAUD and FARAH drove from Minneapolis to San Diego, Calif., where they intended to purchase fake passports, cross the border into Mexico, travel to Syria to join ISIL. Unbeknownst to them, the individual from whom they purchased the fake passports was a law enforcement officer and both were arrested by federal agents immediately after obtaining the phony travel documents.
Ten Minnesotans were charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Six defendants pleaded guilty before trial and one, ABDI NUR, joined ISIL in Syria in June 2015.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
The case is being prosecuted by Assistant United States Attorneys Andrew Winter, John Docherty, and Julie Allyn, with assistance provided by the National Security Division’s Counterterrorism Section
Special thanks to San Diego and New York Field Offices of the FBI and the United States Attorney’s Office in the Southern District of California.
Defendant Information:
GULED ALI OMAR, 21
Minneapolis, Minn.Convicted:
• Conspiracy to Murder Outside the United States, 1 count
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts
• Attempted Financial Aid Fraud, 1 countMOHAMED ABDIHAMID FARAH, 22
Minneapolis, Minn.Convicted:
• Conspiracy to Murder Outside the United States, 1 count
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts
• Perjury, 1 count
• False Statement, 1 countABDIRAHMAN YASIN DAUD, 22
Minneapolis, Minn.Convicted:
• Conspiracy to Murder Outside the United States, 1 count
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 countJury Trial Results in Conviction of Three Minnesotans for Conspiring to Join ISIL and Commit Murder in SyriaRead the Press Release
GULED ALI OMAR, ABDURAHMEN YASIN DAUD, and MOHAMED ABDIHAMID FARAH were convicted by a federal jury today of conspiring to commit murder in Syria on behalf of the Islamic State of Iraq and the Levant (ISIL) and to provide material support to the designated foreign terrorist organization.
The convictions were announced by U.S. Attorney Andrew M. Luger, Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division, and Assistant Attorney General for National Security John P. Carlin.
“The evidence in this case made clear that the defendants made a deeply personal and deliberate decision back in 2014,” said United States Attorney Andrew Luger. “They wanted to fight for a brutal terrorist organization, kill innocent people and destroy their own families in the process. This trial should serve as a wake-up call that it will take the entire community to stop terror recruiting in Minnesota.”
“These verdicts affirm the FBI's investigative efforts,” said Special Agent in Charge Richard T. Thornton. “The FBI will not induce people to break our laws. However, the FBI, through all legal means at its disposal, will investigate and pursue those who aim to bring about harm to others.”
“In the first multi-defendant ISIL-related trial, Mohamed Farah, Abdirahman Daud and Guled Omar were convicted of conspiring to provide material support to the foreign terrorist organization and other federal offenses,” said Assistant Attorney General Carlin. “The defendants conspired with a larger group of individuals to travel to Syria to fight on behalf of ISIL. Countering terrorist threats remains the highest priority of the National Security Division. We will continue to work to disrupt the recruitment and radicalization of Americans by terrorist organizations, and bring to justice those who conspire to provide material support to terrorists. I would like to thank the many agents, analysts and prosecutors who worked tirelessly to secure this conviction.”
Between May 2014 and their arrests on April 19, 2015, these three defendants and their co-conspirators made multiple attempts to join the Islamic State of Iraq and the Levant (ISIL) in Syria.
In May 2014, some members of the conspiracy, including defendant GULED OMAR and co-conspirators ABDI NUR, ABDULLAHI YUSUF, traveled or attempted to travel to Syria to join ISIL. To facilitate the travel of his co-conspirators, defendant DAUD provided contact information for an ISIL member in Turkey to NUR and YUSUF so they could gain assistance crossing the border from Turkey into Syria. NUR succeeded in his plan, joining ISIL in Syria in June 2014. YUSUF was stopped at the Minneapolis/ St. Paul Airport and was later arrested.
Also in May 2014, defendant OMAR and two other members of the conspiracy made an attempt to join ISIL by traveling across the United States – Mexico border near San Diego. This planned failed when members of defendant OMAR’s family prevented his travel.
In October 2014, members of conspiracy communicated with “Antar,” a self-described member of ISIL in Syria, about how best to travel to Syria to join ISIL. Members of conspiracy met with one another to discuss routes, methods and the timing of leaving the United States to join ISIL in Syria.
Defendant OMAR again attempted to join ISIL in Syria on November 6, 2014, by first flying from Minneapolis/St. Paul International Airport to San Diego, California. Again, defendant OMAR planned to cross the United States – Mexico border near San Diego and travel onward to Syria to join ISIL. Before he could board the flight in Minnesota, OMAR was stopped at the airport and prevented from boarding the plane. In order to fund this second attempt to join ISIL in Syria, OMAR intended to use federal financial aid provided to him by the United States Department of Education to attend college.
Also in November 2014, defendant FARAH and three of his co-conspirators, defendants ZACHARIA ABDURAHMAN, HANAD MUSSE, and HAMZA AHMED, took a Greyhound bus to New York City and attempted to board flights to Europe. Defendant FARAH’s ultimate destination was Syria, where he planned to join and fight with ISIL. Federal agents in New York prevented defendant FARAH and his three co-conspirators from traveling.
In April 2015, defendants DAUD and FARAH drove from Minneapolis to San Diego, Calif., where they intended to purchase fake passports, cross the border into Mexico, travel to Syria to join ISIL. Unbeknownst to them, the individual from whom they purchased the fake passports was a law enforcement officer and both were arrested by federal agents immediately after obtaining the phony travel documents.
Ten Minnesotans were charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Six defendants pleaded guilty before trial and one, ABDI NUR, joined ISIL in Syria in June 2015.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
The case is being prosecuted by Assistant United States Attorneys Andrew Winter, John Docherty, and Julie Allyn, with assistance provided by the National Security Division’s Counterterrorism Section.
Special thanks to San Diego and New York Field Offices of the FBI and the United States Attorney’s Office in the Southern District of California.
Defendant Information:
GULED ALI OMAR, 21
Minneapolis, Minn.
Convicted:
-
Conspiracy to Murder Outside the United States, 1 count
-
Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
-
Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts
- Attempted Financial Aid Fraud, 1 count
MOHAMED ABDIHAMID FARAH, 22
Minneapolis, Minn.
Convicted:
-
Conspiracy to Murder Outside the United States, 1 count
-
Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
-
Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts
-
Perjury, 1 count
- False Statement, 1 count
ABDIRAHMAN YASIN DAUD, 22
Minneapolis, Minn.
Convicted:
-
Conspiracy to Murder Outside the United States, 1 count
-
Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
-
Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
-
Federal Jury Convicts Three Minnesota Men for Conspiring to Join ISIL and Commit Murder in SyriaRead the Press Release
Nine Members of the Conspiracy Convicted of Terrorism Charges in Largest Multi-Defendant ISIL-Related Case in United States
Guled Ali Omar, Abdurahman Yasin Daud and Mohamed Abdihamid Farah were convicted by a federal jury today of conspiring to commit murder in Syria on behalf of the Islamic State of Iraq and the Levant (ISIL) and to provide material support to the designated foreign terrorist organization. Omar was also convicted of one count of attempted financial aid fraud, and Farah was also convicted of one count of perjury and providing a false statement.
The convictions were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Andrew M. Luger of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division.
“In the first multi-defendant ISIL-related trial, Mohamed Farah, Abdirahman Daud and Guled Omar were convicted of conspiring to provide material support to the foreign terrorist organization and other federal offenses,” said Assistant Attorney General Carlin. “The defendants conspired with a larger group of individuals to travel to Syria to fight on behalf of ISIL. Countering terrorist threats remains the highest priority of the National Security Division. We will continue to work to disrupt the recruitment and radicalization of Americans by terrorist organizations, and bring to justice those who conspire to provide material support to terrorists. I would like to thank the many agents, analysts and prosecutors who worked tirelessly to secure these convictions.”
“The evidence in this case made clear that the defendants made a deeply personal and deliberate decision back in 2014,” said U.S. Attorney Luger. “They wanted to fight for a brutal terrorist organization, kill innocent people and destroy their own families in the process. This trial should serve as a wake-up call that it will take the entire community to stop terror recruiting in Minnesota.”
“These verdicts affirm the FBI's investigative efforts,” said Special Agent in Charge Thornton. “The FBI will not induce people to break our laws. However, the FBI, through all legal means at its disposal, will investigate and pursue those who aim to bring about harm to others.”
Between May 2014 and April 19, 2015, the three defendants and their co-conspirators made multiple attempts to join ISIL in Syria.
In May 2014, some members of the conspiracy, including Omar and co-conspirators Abdi Nur and Abdullahi Yusuf, traveled or attempted to travel to Syria to join ISIL. To facilitate the travel of his co-conspirators, Daud provided contact information for an ISIL member in Turkey to Nur and Yusuf so that they could gain assistance crossing the border from Turkey into Syria. Nur succeeded in his plan, joining ISIL in Syria in June 2014. Yusuf was stopped at the Minneapolis/St. Paul Airport and was later arrested.
Omar and two other members of the conspiracy also made an attempt to join ISIL by traveling across the U.S.–Mexico border near San Diego in May 2014, but failed when members of Omar’s family prevented his travel.
In October 2014, members of the conspiracy communicated with “Antar,” a self-described member of ISIL in Syria, about how best to travel to Syria to join ISIL. Members of the conspiracy met with one another to discuss routes, methods and the timing of leaving the United States to join ISIL in Syria.
Omar again attempted to join ISIL in Syria on Nov. 6, 2014, by flying from Minneapolis/St. Paul International Airport to San Diego, crossing the border into Mexico and traveling onward to Syria. Before he could board the flight in Minnesota, Omar was stopped at the airport and prevented from boarding the plane. In order to fund this second attempt to join ISIL in Syria, Omar intended to use federal financial aid provided to him by the U.S. Department of Education to attend college.
Also in November 2014, Farah and three of his co-conspirators, Zacharia Abdurahman, Hanad Musse and Hamza Ahmed, took a bus from Minneapolis to New York City and attempted to board flights to Europe with an eventual destination of Syria. Federal agents in New York prevented the four from traveling abroad.
In April 2015, Daud and Farah drove from Minneapolis to San Diego, where they intended to purchase fake passports, cross the border into Mexico and travel to Syria to join ISIL. Unbeknownst to them, the individual from whom they purchased the fake passports was a law enforcement officer and both were arrested by federal agents immediately after obtaining the phony travel documents.
Ten Minnesotans were charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Six defendants pleaded guilty before trial and Nur remains a fugitive.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter, John Docherty and Julie Allyn of the District of Minnesota with assistance provided by the National Security Division’s Counterterrorism Section. The department would also like to thank the FBI’s San Diego and New York Field Offices and the U.S. Attorney’s Office of the Southern District of California for their contributions.
Federal Officials Decline Prosecution in the Death of Jamar ClarkRead the Press Release
The Justice Department announced today that the independent federal investigation into the fatal shooting of Jamar Clark on Nov. 15, 2015 in North Minneapolis, Minnesota, found insufficient evidence to support federal criminal civil rights charges against Minneapolis Police Department (MPD) Officers Mark Ringgenberg and Dustin Schwarze. Prosecutors from the U.S. Attorney’s Office of the District of Minnesota and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Clark’s family and their representatives to inform them of the findings of the investigation and the decision.
The department conducted a comprehensive independent investigation of the events surrounding Clark’s death and reviewed the materials and evidence provided by the Hennepin County, Minnesota, Attorney’s Office and the Bureau of Criminal Apprehension (BCA). Federal agents and prosecutors examined evidence from numerous sources, including surveillance videos from a Hennepin County Medical Center (HCMC) ambulance parked near the site of the shooting; statements from witnesses; evidence gathered by the MPD’s crime lab; MPD documents related to the shooting; personnel files and background material for both involved officers; MPD policies and training materials; squad car videos; 911 recordings; and DNA, blood stain and autopsy reports, including a report of an independent review of the Hennepin County autopsy conducted by the Office of the Armed Forces Medical Examiner at the Department of Defense. Some witness interviews were conducted jointly by the BCA and FBI in the interest of efficiency and completeness. Additionally, the department reviewed the officers’ phone records and interviewed witnesses that spoke with the officers after the incident.
In order to proceed with a prosecution under the applicable federal criminal civil rights law, section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a constitutional right. Since Clark had not been arrested when he was shot, the right involved is his Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police.
To prove that a shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake or even exercised bad judgment.
Although Clark’s death is undeniably tragic, the evidence is insufficient to meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, this matter is not a prosecutable violation of the federal civil rights statutes.
Officers Ringgenberg and Schwarze each provided a detailed statement to state investigators offering their version of how and why this shooting happened. In order to pursue any prosecution in this case, the government would have to disprove these accounts and establish that the shooting constituted a willful violation of Clark’s Fourth Amendment rights. During a detailed and thorough investigation, FBI agents and federal prosecutors conducted numerous interviews of witnesses to the shooting. In determining whether it was possible to disprove the officers’ statements beyond a reasonable doubt, the agents and prosecutors took into account all of the witnesses’ statements. According to the officers, Clark was taken to the ground un-handcuffed, Officer Ringgenberg fell on top of Clark and landed with his back facing Clark. Officer Ringgenberg stated that while he was in this position, Clark grabbed his gun and tried to pull it out of his holster, and that he (Officer Ringgenberg) shouted this information to his partner, Officer Schwarze. The officers stated that Officer Schwarze ordered Clark to release the gun, but Officer Ringgenberg continued to shout that Clark had his gun and that Officer Schwarze should shoot Clark. Officer Schwarze stated that, fearing for his life based on what he heard from Officer Ringgenberg and based on Clark’s and Officer Ringgenberg’s body positioning, he shot Clark.
In order to fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning whether Clark was handcuffed when he was shot. Federal investigators spent considerable time and resources investigating this specific question because the fact that a suspect was handcuffed would change the analysis of whether a particular use of force was reasonable, since a restrained person generally presents less risk of harm to an officer than an unrestrained person.Based on this extensive investigation, the Justice Department concluded that the evidence suggests that Clark was not handcuffed during this incident. Although approximately half of the civilian eyewitnesses interviewed by the FBI reported having seen handcuffs on Clark (and other witnesses believed, based on Clark’s body positioning, that he was handcuffed) these witnesses’ accounts varied significantly in the details of when he was handcuffed, what position he was in when he was handcuffed and even whether one or both hands were handcuffed. These conflicting witness accounts seriously undermine the degree to which they could be used to either disprove the officers’ accounts or to affirmatively establish that Clark was handcuffed.
Additionally, the relevant physical evidence, while not conclusive, tends to support the officers’ account. Neither the Hennepin County Medical Examiner’s autopsy, nor the independent autopsy review conducted by the Office of the Armed Forces Medical Examiner, found evidence of injuries to Clark’s wrists that would be consistent with handcuffing. Further, the department conducted DNA analysis of a pair of handcuffs found in the grass next to Clark’s body. Laboratory swabs of the inner and outer edges of the handcuffs found in the grass, the part that would have touched Clark’s wrists, revealed insufficient DNA for analysis. While these results are not definitive they do not support the conclusion that Clark was handcuffed.
In addition, the department reviewed the surveillance video from the HCMC ambulance that captured part of the incident. When considered in conjunction with the accounts of on-scene paramedics, the footage suggests that Clark was not handcuffed when he was shot. Two paramedics reported exiting the ambulance and moved towards Clark who is lying on his back and not wearing handcuffs. During that same time, Officer Ringgenberg can be seen on the video standing behind the ambulance, pacing around, without kneeling on the ground to remove handcuffs from Clark. Additional video shows that when Clark was transported into an ambulance a short time later, he was not handcuffed. While this evidence that Clark was not handcuffed in the moments following the shooting is not conclusive regarding whether Clark was handcuffed moments before when the shooting occurred, such evidence suggests that he was not. In sum, taken together, the witness accounts and the physical evidence simply cannot establish beyond a reasonable doubt that Clark was handcuffed when he was shot.
Federal investigators also considered whether, even if Clark was not handcuffed, the other evidence in the case is sufficient to establish beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment. The government would be required to produce admissible evidence that would disprove the officers’ accounts, establish the facts, and further establish that the officers’ actions were objectively unreasonable under the circumstances.
The evidence in this case is insufficient to meet this legal standard. Federal investigators obtained statements from 29 witnesses to the shooting. The witness accounts do not provide any consistent narrative that establishes the details of exactly what happened between the officers and Clark, including how Clark was positioned on the ground, where his hands were located, where the officers were positioned and what happened to Officer Ringgenberg’s gun while he was on top of Clark. Additionally, none of these witnesses were close enough to see exactly what happened between Officer Ringgenberg and Clark while they were entangled with each other on the ground. To the extent that video from the ambulance partially provides this vantage point, it shows Officer Ringgenberg, face-up, struggling to get up off of Clark, which tends to corroborate Officer Ringgenberg’s version of events. Moreover, during this investigation, DNA testing revealed the presence of Clark’s DNA on Officer Ringgenberg’s gun. While the exact means by which Clark’s DNA was transferred to the gun cannot be established, its presence makes it impossible to disprove Officer Ringgenberg’s claim that Clark grabbed the gun.
In light of this, the evidence gathered during this investigation is insufficient to prove beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment.Finally, in analyzing a potential charge under section 242, federal investigators also considered whether the evidence was sufficient to prove the statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Clark’s rights. For many of the same reasons described above, the evidence is insufficient to prove willfulness. .
In sum, after extensive investigation into this tragic event, the Justice Department concludes that the evidence is insufficient to prove beyond a reasonable doubt that Officers Ringgenberg and Schwarze willfully violated Clark’s civil rights. Accordingly, the investigation into this incident has been closed without prosecution.In this case, the U.S. Attorney’s Office of the District of Minnesota, the Civil Rights Division and the FBI each devoted significant time and resources to investigating the circumstances surrounding Clark’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Officials Decline Prosecution in the Death of Jamar ClarkRead the Press Release
The Justice Department announced today that the independent federal investigation into the fatal shooting of Jamar Clark on Nov. 15, 2015, in North Minneapolis, Minnesota, found insufficient evidence to support federal criminal civil rights charges against Minneapolis Police Department (MPD) Officers Mark Ringgenberg and Dustin Schwarze. Prosecutors from the U.S. Attorney’s Office of the District of Minnesota and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Clark’s family and their representatives to inform them of the findings of the investigation and the decision.
The department conducted a comprehensive independent investigation of the events surrounding Clark’s death and reviewed the materials and evidence provided by the Hennepin County, Minnesota, Attorney’s Office and the Bureau of Criminal Apprehension (BCA). Federal agents and prosecutors examined evidence from numerous sources, including surveillance videos from a Hennepin County Medical Center (HCMC) ambulance parked near the site of the shooting; statements from witnesses; evidence gathered by the MPD’s crime lab; MPD documents related to the shooting; personnel files and background material for both involved officers; MPD policies and training materials; squad car videos; 911 recordings; and DNA, blood stain and autopsy reports, including a report of an independent review of the Hennepin County autopsy conducted by the Office of the Armed Forces Medical Examiner at the Department of Defense. Some witness interviews were conducted jointly by the BCA and FBI in the interest of efficiency and completeness. Additionally, the department reviewed the officers’ phone records and interviewed witnesses that spoke with the officers after the incident.
In order to proceed with a prosecution under the applicable federal criminal civil rights law, section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a constitutional right. Since Clark had not been arrested when he was shot, the right involved is his Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police.
To prove that a shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake or even exercised bad judgment.
Although Clark’s death is undeniably tragic, the evidence is insufficient to meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, this matter is not a prosecutable violation of the federal civil rights statutes.
Officers Ringgenberg and Schwarze each provided a detailed statement to state investigators offering their version of how and why this shooting happened. In order to pursue any prosecution in this case, the government would have to disprove these accounts and establish that the shooting constituted a willful violation of Clark’s Fourth Amendment rights. During a detailed and thorough investigation, FBI agents and federal prosecutors conducted numerous interviews of witnesses to the shooting. In determining whether it was possible to disprove the officers’ statements beyond a reasonable doubt, the agents and prosecutors took into account all of the witnesses’ statements. According to the officers, Clark was taken to the ground un-handcuffed, Officer Ringgenberg fell on top of Clark and landed with his back facing Clark. Officer Ringgenberg stated that while he was in this position, Clark grabbed his gun and tried to pull it out of his holster, and that he (Officer Ringgenberg) shouted this information to his partner, Officer Schwarze. The officers stated that Officer Schwarze ordered Clark to release the gun, but Officer Ringgenberg continued to shout that Clark had his gun and that Officer Schwarze should shoot Clark. Officer Schwarze stated that, fearing for his life based on what he heard from Officer Ringgenberg and based on Clark’s and Officer Ringgenberg’s body positioning, he shot Clark.
In order to fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning whether Clark was handcuffed when he was shot. Federal investigators spent considerable time and resources investigating this specific question because the fact that a suspect was handcuffed would change the analysis of whether a particular use of force was reasonable, since a restrained person generally presents less risk of harm to an officer than an unrestrained person.
Based on this extensive investigation, the Justice Department concluded that the evidence suggests that Clark was not handcuffed during this incident. Although approximately half of the civilian eyewitnesses interviewed by the FBI reported having seen handcuffs on Clark (and other witnesses believed, based on Clark’s body positioning, that he was handcuffed) these witnesses’ accounts varied significantly in the details of when he was handcuffed, what position he was in when he was handcuffed and even whether one or both hands were handcuffed. These conflicting witness accounts seriously undermine the degree to which they could be used to either disprove the officers’ accounts or to affirmatively establish that Clark was handcuffed.
Additionally, the relevant physical evidence, while not conclusive, tends to support the officers’ account. Neither the Hennepin County Medical Examiner’s autopsy, nor the independent autopsy review conducted by the Office of the Armed Forces Medical Examiner, found evidence of injuries to Clark’s wrists that would be consistent with handcuffing. Further, the department conducted DNA analysis of a pair of handcuffs found in the grass next to Clark’s body. Laboratory swabs of the inner and outer edges of the handcuffs found in the grass, the part that would have touched Clark’s wrists, revealed insufficient DNA for analysis. While these results are not definitive they do not support the conclusion that Clark was handcuffed.
In addition, the department reviewed the surveillance video from the HCMC ambulance that captured part of the incident. When considered in conjunction with the accounts of on-scene paramedics, the footage suggests that Clark was not handcuffed when he was shot. Two paramedics reported exiting the ambulance and moved towards Clark who is lying on his back and not wearing handcuffs. During that same time, Officer Ringgenberg can be seen on the video standing behind the ambulance, pacing around, without kneeling on the ground to remove handcuffs from Clark. Additional video shows that when Clark was transported into an ambulance a short time later, he was not handcuffed. While this evidence that Clark was not handcuffed in the moments following the shooting is not conclusive regarding whether Clark was handcuffed moments before when the shooting occurred, such evidence suggests that he was not. In sum, taken together, the witness accounts and the physical evidence simply cannot establish beyond a reasonable doubt that Clark was handcuffed when he was shot.
Federal investigators also considered whether, even if Clark was not handcuffed, the other evidence in the case is sufficient to establish beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment. The government would be required to produce admissible evidence that would disprove the officers’ accounts, establish the facts and further establish that the officers’ actions were objectively unreasonable under the circumstances.
The evidence in this case is insufficient to meet this legal standard. Federal investigators obtained statements from 29 witnesses to the shooting. The witness accounts do not provide any consistent narrative that establishes the details of exactly what happened between the officers and Clark, including how Clark was positioned on the ground, where his hands were located, where the officers were positioned and what happened to Officer Ringgenberg’s gun while he was on top of Clark. Additionally, none of these witnesses were close enough to see exactly what happened between Officer Ringgenberg and Clark while they were entangled with each other on the ground. To the extent that video from the ambulance partially provides this vantage point, it shows Officer Ringgenberg, face-up, struggling to get up off of Clark, which tends to corroborate Officer Ringgenberg’s version of events. Moreover, during this investigation, DNA testing revealed the presence of Clark’s DNA on Officer Ringgenberg’s gun. While the exact means by which Clark’s DNA was transferred to the gun cannot be established, its presence makes it impossible to disprove Officer Ringgenberg’s claim that Clark grabbed the gun.
In light of this, the evidence gathered during this investigation is insufficient to prove beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment.
Finally, in analyzing a potential charge under section 242, federal investigators also considered whether the evidence was sufficient to prove the statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Clark’s rights.
For many of the same reasons described above, the evidence is insufficient to prove willfulness.
In sum, after extensive investigation into this tragic event, the Justice Department concludes that the evidence is insufficient to prove beyond a reasonable doubt that Officers Ringgenberg and Schwarze willfully violated Clark’s civil rights. Accordingly, the investigation into this incident has been closed without prosecution.
In this case, the U.S. Attorney’s Office of the District of Minnesota, the Civil Rights Division and the FBI each devoted significant time and resources to investigating the circumstances surrounding Clark’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
In Minneapolis there are a number of ongoing efforts led by the Justice Department intended to bring community members together to address public safety and public trust concerns. Minneapolis is one of six pilot cities in the department’s National Initiative for Building Community Trust & Justice which is designed to increase trust and transform relationships between communities of color and police. Additionally, the department’s Office of Community Oriented Policing Services (COPS) is conducting an independent review of the city’s response to last fall’s occupation of the Fourth Precinct station to identify significant findings about critical decisions and practices in order to help develop recommendations that Minneapolis, the Minneapolis Police Department and cities and law-enforcement agencies nationwide can use to help build trust, improve relationships and protect civil rights in the communities they serve.
Former Bank CEO Sentenced to 18 Months for Obstructing an Examination by the Federal Reserve BoardRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of TIMOTHY PAUL OWENS, 55, to 18 months in federal prison for obstructing an examination by the Board of Governors of the Federal Reserve (Federal Reserve Board). OWENS was indicted on December 15, 2014, and pleaded guilty on July 30, 2015. He was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“Mr. Owens’ obstruction of a Federal Reserve Board examination is the type of criminal conduct that harms federal regulators’ ability to appropriately supervise banking institutions,” said Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “Today’s sentencing is another step in a joint effort with our law enforcement partners to hold accountable those who undermine the integrity of the examination process.”
“The integrity of the examination process is central to ensuring the safety and soundness of the nation’s banking system,” said Fred W. Gibson, Jr., Acting Inspector General for the Federal Deposit Insurance Corporation. “When a bank official misuses his position of trust to obstruct that process, he needs to be held accountable. The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney’s Office and our law enforcement colleagues in assisting with this case and bringing about today’s sentencing of Mr. Owens.”
“This case is a perfect example of how well various law enforcement agencies in Minnesota work together to combat financial crimes,” said Assistant U.S. Attorney Robert Lewis. “Agents from OIG and FBI worked together to get to the bottom of Mr. Owens’ conduct. That level of cooperation makes these prosecutions possible.”
According to the defendant’s guilty plea and documents filed in court, OWENS served as CEO and Chairman of Voyager Bank (“Voyager”) and the President and CEO of Voyager Financial Services Corporation (“VFSC”). In June 2009 the Federal Reserve Board (“FRB”) conducted an examination of VFSC, focusing specifically on loans made to VFSC insiders, including OWENS. During the examination, FRB representatives found that VFSC had issued four direct loans to OWENS, totaling more than $5.4 million, and had purchased participation in a letter of credit (“LOC”), worth $7.5 million, obtained by OWENS from another bank.
According to the defendant’s guilty plea and documents filed in court, the FRB formally demanded in writing that the VFSC Board of Directors review OWENS’ loans and submit documentation showing that the loans to OWENS had been reviewed by the Board of Directors and were consistent with existing bank policies. On July 7, 2009, OWENS received the letter from the FRB, but did not disclose it to the VFSC board, and secretly prepared a response that was false and misleading. OWENS’ response to the FRB stated that the VFSC board had reviewed the loans, that OWENS had only three loans and had exclusive access to a $3.6 million family trust, that the board had approved his loans pursuant to a revised loan policy, and that OWENS was reducing his overall debt levels. In addition, OWENS submitted a false and misleading three-page “Policy Statement” that had not been approved by the VFSC board; he also submitted documents that inaccurately portrayed his financial circumstances and ability to repay his loans by exaggerating his wealth and concealing his liabilities.
This case is the result of an investigation conducted by the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Federal Bureau of Investigation.
The Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau provides independent oversight to improve their programs and operations and to prevent and detect fraud, waste, and abuse.
Assistant U.S. Attorney Robert Lewis prosecuted this case.
Defendant Information:
TIMOTHY PAUL OWENS, 55
Wayzata, MN
Convicted:
-
Obstructing Examination of a Financial Institution, 1 count
Sentenced:
-
18 months in federal prison
-
2 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Former Restaurateur Pleads Guilty to Stealing More Than $585,000 in Withheld Employees' TaxesRead the Press Release
United States Attorney Andrew M. Luger announced the guilty plea of KELLY LOUISE JAEDIKE, 46, for failing to pay taxes that she withheld from her employees. JAEDIKE pleaded guilty yesterday to conspiracy and attempting to evade or defeat tax and for failing to hold in trust and pay over to the IRS, employee money for which she was responsible. JAEDIKE’s brother, DAVID AHERN, 49, pleaded guilty on October 13, 2015, to conspiracy.
“The defendants used their restaurant as a personal piggy bank,” said Assistant United States Attorney Tracy L. Perzel. “What should have been an extremely profitable restaurant bounced employee paychecks, issued IOUs to servers for tips, and couldn’t get deliveries from vendors because of rampant overspending. Employees and the vendors who serviced this restaurant deserved better.”
“Kelly Jaedike and David Ahern cheated their employees by failing to hold in trust and pay over the employees’ taxes, as required by law,” said IRS Criminal Investigation Special Agent in Charge Shea Jones. “In these situations, employees suffer. Their social security statements may not match their actual work histories. And, if those employees do not contact the Social Security Administration to correct this, it will have a lifelong effect on their social security payments. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves on the backs of hardworking people.”
According to the defendants’ guilty pleas and documents filed in court, from at least 2006 through 2012, the defendants, who are siblings, operated a Melting Pot restaurant franchise in Minneapolis, Minn. As employers, the defendants were responsible for withholding taxes from their employees and paying those withheld taxes to the IRS. In 2006, the IRS imposed a penalty on JAEDIKE for $266,000 because she had failed to pay over taxes withheld from her employees’ paychecks. Instead of working to pay off the debt, JAEDIKE, AHERN, and others worked to hide JAEDIKE’s income and assets to prevent the IRS from seizing them to repay the debt. Among other methods of deception, JAEDIKE and others transferred the restaurant to a nominee entity and issued paychecks that falsely made her wages appear to be wages of her husband, with the intent to hide JAEDIKE’S income and assets.
According to the defendants’ guilty pleas and documents filed in court, from 2009 to 2011, JAEDIKE and AHERN again failed to pay over employment taxes totaling $680,000, including more than $404,000 that was withheld from employee paychecks. JAEDIKE, AHERN and members of their family received more than $1.29 million in personal payments from the restaurant between 2007 and 2011.
According to the defendant’s guilty plea and documents filed in court, JAEDIKE and AHERN used the proceeds of their crime to pay mortgage loans on three family residences, vehicle leases and loans, and expenses for unrelated business ventures like Ahern’s Irish Pub, a restaurant JAEDIKE sought to open in Minneapolis.
JAEDIKE pleaded guilty yesterday before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
This case is being prosecuted by Assistant United States Attorney Tracy L. Perzel.
Defendant Information:KELLY LOUISE JAEDIKE, 46
Eagan, Minn.Convicted:
- Conspiracy to defraud the United States, 1 count
- Attempt to evade or defeat tax, 1 count
DAVID DALE AHERN, 49
Eau Claire, Wisc.Convicted:
- Conspiracy to defraud the United States, 1 count
Plymouth Woman Pleads Guilty to Scamming Insurance Company for $2 Million Life Insurance PayoutRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of IRINA VOROTINOV, 49, to defrauding Mutual of Omaha Insurance Company of more than $2 million in life insurance proceeds by falsely claiming that her former husband died.
“The FBI and Criminal Investigation Division of the IRS determined that Igor Vorotinov’s death was faked,” said Assistant United States Attorney David J. Maclaughlin. “The hard work of the agents on this case illustrates the ability of the United States government to effectively investigate complex international crimes. Would-be fraudsters should be warned that it is very difficult to steal millions of dollars from United States insurance companies with impunity.”
According to the defendant’s guilty plea and documents filed in court, in March 2010, Igor Vorotinov purchased a life insurance policy on his own life from Mutual of Omaha, and listed IRINA VOROTINOV as the beneficiary. 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.
According to the defendant’s guilty plea and documents filed in court, on November 7, 2011, IRINA VOROTINOV filed a death claim with Mutual of Omaha, despite the fact that she knew IGOR was not dead. Mutual of Omaha paid the claim to the defendant with a check for $2,048,414.09.
According to the defendant’s guilty plea and documents filed in court, IRINA VOROTINOV 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 US Bank in the name of her son, Alkon Vorotinov. Ultimately, Between March 29, 2012 and January 2015, the defendant caused more than $1.5 million of the life insurance proceeds to be transferred to accounts located in Switzerland and Moldova.
The defendant pleaded guilty today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
Assistant U.S. Attorney David J. Maclaughlin is prosecuting the case.
Defendant Information:
IRINA VOROTINOV, 49
Plymouth, Minn.
Convicted:
- Mail 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
Anoka Hennepin Drug Task Force Makes Largest Seizure of Methamphetamine in Minnesota HistoryRead the Press Release
United States Attorney Andrew M. Luger today announced a federal criminal complaint charging DOLORES LUDMILLA CASTILLO, 40, and FRANCISCO SILVESTRE-MARTINEZ, 27, possessing with intent to distribute more than 140 pounds of methamphetamine. The defendants made initial appearances on May 11, 2016, in U.S. District Court in Minneapolis, Minn.
“This is what successful collaborative law enforcement efforts can do,” said Anoka County Sheriff James Stuart. “I am very proud of the team that worked so hard to make this operation a success. Let this be a clear message to those who would try to poison our communities in the name of evil greed; we will continue in this hunt and we will find you.”
“DEA takes the trafficking of methamphetamine in Minnesota very seriously,” said Assistant Special Agent in Charge Kent Bailey. “Working with our local law enforcement partners on the Anoka Hennepin Drug Task Force, we are taking dangerous drugs off the streets. The seizure of more than 140 pounds of methamphetamine announced today is but one example of the work we do every day to keep Minnesotans safe.”
According to the criminal complaint and documents filed in court, since September 2015, the DEA and the Anoka Hennepin Drug Task Force (AHDTF) have been conducting an investigation into the drug activity of a Nicholas Nelson, who was believed to be involved in the sale multi-ounce to multi-pound quantities of methamphetamine.
According to the criminal complaint and documents filed in court, in March and April 2016, authorities conducted a number of undercover purchases of methamphetamine from Nelson. During the course of the investigation, law enforcement came to believe that a particular home in Brooklyn Center, Minn., was being used a storage facility for methamphetamine.
According to the criminal complaint and documents filed in court, on May 9, 2016, officers seized approximately 140 pounds of methamphetamine from home in Brooklyn Center. Some of the methamphetamine had been divided into quart-sized bags in one pound increments. Officers also recovered documents indicating that CASTILLO and SILVESTRE-MARTINEZ were the primary residents of the home.
According to the criminal complaint and documents filed in court, on May 10, 2016, CASTILLO and SILVESTRE-MARTINEZ were arrested at a home in Maplewood, Minn., with approximately two pounds of methamphetamine. Officers also found $130,000 in cash.
This case is the result of an investigation conducted by the United States Drug Enforcement Administration and the Anoka Hennepin Drug Task Force.
This case is being prosecuted by Assistant United States Attorney David P. Steinkamp.
Defendant Information:
DOLORES LUDMILLA CASTILLO, 40
Maplewood, Minn.
Charges:
- Possession with intent to distribute methamphetamine, 1 count
FRANCISCO SILVESTRE-MARTINEZ, 27
Maplewood, Minn.
Charges:
-
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 criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Four United States Citizens Sentenced for Attempting to Overthrow the Gambian GovernmentRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General for National Security John P. Carlin today announced the sentencing of CHERNO NJIE, 58, ALGIE BARROW, 43, and BANKA MANNEH, 43, PAPA FAAL, 47, for their roles in planning and executing an unsuccessful coup attempt to overthrow the government of The Gambia on December 30, 2014. Three other members of the conspiracy were killed.
“These defendants conspired to overthrow a foreign government,” said U.S. Attorney Luger. “Regardless of the legitimacy of their personal and emotional connections to The Gambia, these men placed countless innocents in harm’s way when they engaged in a brazen and fatally flawed attempt at regime change. They violated U.S. laws that exist to protect the foreign policy of our country and all Americans both at home and abroad. While I respect the right of any person to voice opposition to a government or its policies, this case is a good example of how not to do so.”
According to the defendants’ guilty pleas and documents filed in court, the coup plotting began in at least 2013 when members of the conspiracy participated in meetings and discussions with other individuals about changing the leadership in The Gambia. As these discussions progressed, the co-defendants and other co-conspirators decided to attempt to change the regime in The Gambia through a coup. Defendants NJIE, MANNEH and BARROW led the effort to research, plan, supply, and execute the coup.
According to the defendants’ guilty pleas and documents filed in court, throughout the planning of the coup, the defendants participated in regular discussion by phone, email, or face-to-face at NJIE’s residence in Texas. The defendants engaged in military planning for the coup, which included an operations plan that identified the equipment and other logistical support needed for the coup. The defendants also engaged in political planning for The Gambia after the coup, which they expected would result in NJIE becoming the interim leader of The Gambia.
According to the defendants’ guilty pleas and documents filed in court, NJIE provided money for FAAL, MANNEH and BARROW to purchase firearms, all in furtherance of the coup. NJIE himself bought two expensive sniper rifles in Texas. NJIE also paid for the travel of his co-defendants to Texas for planning meetings and to Senegal to conduct the coup in The Gambia.
According to the defendants’ guilty pleas and documents filed in court, on the night of the attempted coup, they found that their target, the State House in Banjul, The Gambia, had been fortified with extra soldiers. The co-conspirators took heavy fire from the guard towers and suffered casualties. After their plan failed, the co-defendants fled The Gambia to Senegal before ultimately returning to the United States.
This investigation was led by the Federal Bureau of Investigation and its partners on Joint Terrorism Task Forces in multiple FBI field offices.
Assistant U.S. Attorney Charles Kovats prosecuted this case, with assistance from Richard Scott, a Deputy Chief of the National Security Division’s Counterintelligence and Export Control Section. A number of other U.S. Attorney’s Offices, including those in the Middle District of Tennessee, District of Maryland and the Western District of Texas provided critical support during the investigation.
Defendant Information:CHERNO NJIE, 58
Lakeway, Tex.Convicted:
- Conspiracy to violate the Neutrality Act, 1 count
-
Conspiracy to possess a firearm in furtherance of a crime of violence, 1 count
Sentenced:
• One year and one day in prisonALAGIE BARROW, 43
Lavergne, Tenn.Convicted:
• Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 countSentenced:
• Six months in prisonBANKE MANNEH, 43
Jonesboro, Ga.Convicted:
• Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 countSentenced:
• Six months in prisonPAPA FAAL, 47
Brooklyn Center, Minn.Convicted:
• Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to Smuggle Firearms in violation of the Arms Export Control Act, 1 countSentenced:
• Time served
German Shipping Company Charged with Covering up Illegal Dumping of Oily Waste Water into Great LakesRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH (“MST”), a German company and operator of the M/V Cornelia, with violating the Act to Prevent Pollution from Ships (APPS) by failing to maintain an accurate ship record about the disposal of oil-contaminated waste. The defendant is also charged with presenting falsified records to the U.S. Coast Guard.
According to the indictment and documents filed in court, from February 2015 through October 2015, the M/V Cornelia, a German-owned commercial vessel, experienced significant leakages of oily waste-water. As a result, the M/V Cornelia was accumulating a substantial volume of machinery space bilge water.
On at least ten occasions during the indicted period, the M/V Cornelia’s Chief Engineer and/or Second Engineer instructed members of the engine room crew to transfer machinery space bilge water from the dirty bilge tank to the clean bilge tank, which is a separate tank that is supposed to contain only clean, oil-free water, and then discharge the oily waste-water overboard. At least one occasion when machinery space bilge water was transferred to the clean bilge tank and then discharged overboard occurred in approximately May 2015 while the ship was in the Great Lakes.
On each occasion in which oily waste-water was transferred internally and then discharged overboard, the Chief Engineer intentionally failed to record the transfers and subsequent discharges of oily waste-water in the M/V Cornelia’s Oil Record Book (ORB). This gave the false impression in the ORB that all of the oily waste-water had been properly handled and disposed.
On November 3, 2015, the M/V Cornelia called upon the Port of Duluth to load grain for transport to Africa. At that time, U.S. Coast Guard inspectors boarded the vessel to conduct a Port State Control examination and were presented with the M/V Cornelia’s ORB containing the omissions and false entries.
The indictment is the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and John Kokkinen.
Defendant Information:MST MINERALIEN SCHIFFAHRT SPEDITION AND TRANSPORT GMBH
Schnaittenbach, GermanyCharges:
- Violation of the Act to Prevent Pollution From Ships, 1 count
- False Entries/Omissions in Records in a Federal Investigation, 8 counts
Yiwei Zheng Sentenced to Pay $500,000 Fine for Smuggling Elephant Ivory and Rhinoceros HornsRead the Press Release
United States Attorney Andrew M. Luger and Ed Grace, Deputy Assistant Director for the U.S. Fish and Wildlife Service (USFWS), today announced the sentencing of YIWEI ZHENG, A/K/A “Steve Zheng,” 43, for smuggling elephant ivory and illegally exporting rhinoceros horns from the United States to China.
ZHENG was ordered to pay $500,000 into the Lacey Act Reward Fund, which is used by USFWS to reward those who provide information about wildlife crimes and to pay the costs incurred in caring for fish, wildlife or plants that are being held as evidence in ongoing investigations. The defendant was also sentenced to serve three years’ probation, a six-week period of intermittent confinement, and to perform 150 hours of community service.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
“Those who engage in this illegal trade create demand, and a market for, the exploitation of endangered species such as black rhinoceros,” said Assistant United States Attorney Laura M. Provinzino. “This defendant helped to sustain this illegal market for years, engaging in more than 300 sales and earning more than $1 million. His profit was earned at the expense of these threatened and endangered species.”
“Stopping wildlife trafficking and trade in ivory and rhino continues to be a huge conservation priority for us,” said U.S. Fish and Wildlife Service Deputy Assistant Director for Law Enforcement Ed Grace. “It takes all of us to protect these endangered species, here and around the world.”
According to the defendant’s guilty plea and documents filed in court, on April 30, 2011, ZHENG smuggled elephant ivory out of the United States to a recipient in Shanghai, China. ZHENG also violated the Lacey Act by exporting two rhinoceros horns from the U.S. between July 25, 2010 and July 27, 2010, with knowledge that the two rhinoceros horns were transported and sold in violation of the laws and regulations of the United States, including the Endangered Species Act.
ZHENG operated an online business known as Crouching Dragon Antiques. As part of this business, ZHENG offered for sale and sold a variety of items, including items made of elephant ivory and rhinoceros horn. On May 5, 2011, U.S. Customs and Border Protection officers identified a package containing a number of elephant ivory carvings being shipped from the United States to an individual in Shanghai, China. The shipper was identified as YIWEI ZHENG. The ivory contained within the shipment had not been declared to the U.S. Fish and Wildlife Service upon export nor had ZHENG obtained any Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) permits for the ivory being exported as required.
In total, ZHENG smuggled into and out of the United States and sold in China and elsewhere, elephant ivory, rhinoceros horn and other items worth more than $1,000,000.
ZHENG pleaded guilty on January 13, 2016, and was sentenced today by U.S. District Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
This case is the result of an investigation by the U.S. Fish and Wildlife Service.
The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:
YIWEI ZHENG, A/K/A “Steve Zheng,” 43
St. Cloud, Minn.
Convicted:
-
Smuggling goods from the United States, 1 count
- Violation of the Lacey Act, 1 count
Sentenced:
-
$500,000 fine payable to the Lacey Act Reward Fund
-
Three years’ probation
-
Six weeks of intermittent confinement
-
150 hours community service
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Saint Paul Man Pleads Guilty to Dealing Firearms Without a LicenseRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of EITAN BENJAMIN FELDMAN, 28, for illegally dealing in firearms without a license. The defendant pleaded guilty today before U.S. District Judge Patrick J. Schiltz in United States District Court in Minneapolis, Minn. A sentencing date has been set for August 30, 2016.
According to the defendant’s guilty plea, between January 2014 and January 2016, FELDMAN engaged in a regular pattern and practice of unlawfully dealing in firearms without a license by repeatedly purchasing firearms and offering them for resale within days of getting them. FELDMAN routinely purchased firearms offered by out-of-state Federal Firearms Licensees (FFLs) through websites such as gunbroker.com, an online firearms auction site. FELDMAN arranged to have the firearms transferred to L.E. Gun Sales, a FFL in Minnesota, where he received and took possession of the guns after completing and signing the appropriate documentation and submitting to a National Instant Criminal Background System (NICS) check.
According to the defendant’s guilty plea, during the same time period, FELDMAN regularly listed and offered the same firearms for sale – often at a higher price than what he paid – on armslist.com, a website that allows individuals to list firearms for sale. On average, FELDMAN made a potential $90 profit on each firearm he resold. Of the 41 guns FELDMAN purchased and re-sold during this time, the average time he actually possessed a gun before offering it for resale was only nine days.
In July 2015, an ATF Special Agent told FELDMAN that some of the firearms he had received at L.E. Gun Sales, and subsequently sold, had been linked to crime scenes within days of FELDMAN taking possession of and selling the guns.
On October 2, 2015, ATF Special Agents served FELDMAN with a written Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law, warning him that his continuous and repetitive firearm-related activity appears to make him an unlicensed “dealer in firearms” and that he should stop immediately or risk criminal prosecution. Despite the warning, FELDMAN continued his unlawful dealing in firearms on at least eight more occasions, including two sales of firearms to undercover federal agents. During those two sales, FELDMAN did not ask for any identification nor make an effort to determine whether the putative purchasers were prohibited by law from purchasing the firearms.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, the Saint Paul Police Department and the Bloomington Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:EITAN BENJAMIN FELDMAN, 29
Saint Paul, Minn.Convicted:
-
Willfully engaging in the business of dealing in firearms without a license, 1 count
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Statement of U.S. Attorney Andrew Luger on Partial Verdict After Trial of Officer Michael GriffinRead the Press Release
“While we had hoped for a different outcome, we respect the verdict of the jury and thank them for their service during this long and difficult trial. We strongly believe that this case needed to be brought before a Court, publicly tried, and decided by a jury. Our office is reviewing its options as to those remaining counts of the indictment upon which the jury was unable to reach a unanimous verdict.”
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Latin Kings Gang Leader Sentenced to 70 Months in Prison for Conspiring to Steal $180,000 from IRSRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ELISEO ORTIZ, 50, to 70 months in prison for conspiring to file false state and federal tax returns and claim tax refunds. Co-defendants STACEY JEAN BERGHAMMER, 34, who was sentenced yesterday to time served, and SHANNON LEE TROLLEN, 38, each pleaded guilty to one count of conspiracy to file false claims. ORTIZ, who pleaded guilty on September 18, 2015, to one count of conspiracy to file false claims, was sentenced today before U.S. District Judge Susan R. Nelson in St. Paul, Minn.
According to his guilty plea and documents filed in court, between 2008 and at least April 28, 2010, ORTIZ was incarcerated at Stillwater Correctional Facility, where he recruited and directed numerous co-conspirators to provide names and social security numbers to be used in preparing and filing the false tax returns. In addition, ORTIZ recruited help from outside the prison to execute the scheme, including help from co-defendants BERGHAMMER and TROLLEN. ORTIZ’ co-conspirators were asked to provide addresses for unincarcerated trusted associates who could transfer money from tax refunds to the defendants and other co-conspirators. ORTIZ provided the information he obtained from the co-conspirators to BERGHAMMER or TROLLEN, who would then complete and file the false tax returns that fraudulently claimed refunds to which the recruits were not entitled.
According to his guilty plea and documents filed in court, ORTIZ filed false income tax returns for tax years 2007, 2008 and 2009 by claiming false wages, withholdings, and other tax credits. ORTIZ and other co-conspirators obtained payments for their roles in the scheme in various ways. Payments were sometimes obtained through a direct deposit, debit cards or by having the tax refund check sent to an associate who would then cash the check and split the money between the co-conspirator, the defendants, and others.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case was prosecuted by Assistant U.S. Attorney Michael L. Cheever.
Defendant Information:
ELISEO ORTIZ, 50
Bartlett, Ill.
Convicted:
- Conspiracy to file false claims, 1 count
Sentenced:
- 70 months in prison
- Three years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former CFO of Granite Falls Industrial Contractor Charged with Embezzling More Than $5.7 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced an information charging KIRSTEN ANN TJOSAAS, 38, for embezzling more than $5.7 million from Fagen, Inc. (Fagen), an industrial contracting company for which she served as Chief Financial Officer. TJOSAAS is charged with wire fraud and money laundering. The defendant is expected to appear at a later date before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
“As alleged in the information, Ms. Tjosaas carried on an egregious embezzlement scheme over an eight-year period, stealing millions from a family-owned business,” said U.S. Attorney Andrew Luger. “These charges reflect a clear violation of both the law and the trust her employer placed in her.”
According to the information, between 2006 and November 2015, TJOSAAS abused her authority as Corporate Controller and Chief Financial Officer of Fagen to issue at least 19 checks and make wire transfers totaling approximately $4.5 million from Fagen to Fairmont Investments, LLC (Fairmont), a Nebraska-based corporation controlled by the defendant.
According to the information, after registering Fairmont, TJOSAAS opened a bank account at Granite Falls Bank in the name of Fairmont for the purpose of embezzling money from Fagen. TJOSAAS signed these checks using the signature stamp of another Fagen executive without the authority or knowledge of that executive. The defendant also entered false entries into Fagen’s general ledger to disguise the illegitimate checks as payments to Fagen partners or payments to legitimate Fagen vendors. After depositing checks into the Fairmont account, TJOSAAS transferred the funds she had stolen into her own personal bank accounts. She used the illicit proceeds to buy five houses and other real estate in Florida, Minnesota, Tennessee, and Arizona, as well as at least three automobiles, two all-terrain vehicles, a motorcycle, a jet-ski, and a sailboat.
According to the information, TJOSAAS also fraudulently issued Fagen checks payable to another company. TJOSAAS had access to and control over the bank account of this company. Between June 2006 and November 2015, TJOSAAS issued approximately 25 fraudulent checks into this account, totaling more than $1.2 million.
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:
KIRSTEN ANN TJOSAAS, 38
Granite Falls, Minn.
Charges:
- Wire fraud, 1 count
- Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the information are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
St. Paul Woman Indicted for Filing Fraudulent Income Tax Returns for Friends and FamilyRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging EBONY SHANTE YARBROUGH, 27, for filing fraudulent income tax returns for friends and family and stealing the identities of minors to obtain tax refunds.[1] YARBROUGH is charged with nine counts of making false, fictitious and fraudulent claims and three counts of aggravated identity theft. The defendant appeared today before Magistrate Judge Franklin Noel in U.S. District Court in Minneapolis, Minn.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Shea Jones, Special Agent in Charge of the IRS - Criminal Investigation Division, St. Paul Field Office. “As our tax filing season winds down next week, today’s court action should serve as a warning to taxpayers, to be wary of any scheme to defraud the IRS and steal from American taxpayers. The IRS will continue to pursue those who unjustly enrich themselves by preparing false claims for refunds.”
According to the indictment and documents filed in court, between 2013 and 2015, YARBROUGH convinced friends and family members to allow her to file their state and federal income tax returns by claiming she knew how to prepare the returns and would charge less than a tax preparation service. YARBROUGH would then obtain from the taxpayers W-2s and 1099s, as well as personal identifying information such as social security numbers, addresses and dependent information.
According to the indictment and documents filed in court, as part of her scheme, YARBROUGH would prepare taxpayers’ returns by claiming false Schedule C income characterized as “hair stylist,” “cleaner” or “exotic dancer.” Additionally, YARBROUGH would include dependents on taxpayers’ returns by using stolen personal identifying information belonging to minors, enabling them to qualify for other tax credits. YARBROUGH’S scheme accounted for more than $500,000 in false state and federal claims.
As Tax Day approaches, the U.S. Attorney’s Office reminds all Minnesotans that the deadline for filing federal income tax returns is Monday, April 18. Federal law enforcement is committed to pursuing those who commit tax fraud or attempt to defraud the tax system.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS. The Minnesota Department of Revenue assisted in the investigation.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
Defendant Information:
EBONY SHANTE YARBROUGH, 27
St. Paul, Minn.
Charges:
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Making False, Fictitious and Fraudulent Claims, 9 counts
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Aggravated Identity Theft, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Twin Cities Man Charged with Selling Heroin That Resulted in Death and Conspiring to Sell HeroinRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging JAIME EDWARD MCCLELLAN, a/k/a “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 31, for conspiring to distribute heroin and selling heroin that resulted in the death of at least one person. MCCLELLAN is charged with conspiracy to distribute heroin, distribution of heroin resulting in death, distribution of heroin, possession with intent to distribute heroin, using and carrying a firearm during and in relation to a drug trafficking crime, and felon in possession of a firearm.
“Heroin continues to threaten people’s lives,” said U.S. Attorney Luger. “This indictment marks the first time my office has charged a defendant with distributing heroin resulting in death. As our state continues to grapple with the dangers of heroin and other harmful drugs, law enforcement will remain vigilant in tracking down and prosecuting dealers.”
According to the indictment and documents filed in state court, on October 23, 2015, MCCLELLAN sold heroin to a victim in Medina, Minn. The defendant warned the victim to be careful while using the heroin that night because it was “good stuff.” The defendant was arrested on December 16, 2015, at which time he had in his possession at least 15 grams of heroin and approximately $400,000 in cash.
According to the indictment, between January 2014 and December 2015, MCCLELLAN conspired with others in Minnesota to distribute more than two pounds of heroin. In December 2015, MCCLELLAN sold heroin on at least four separate occasions to undercover law enforcement agents. When arrested on December 16, 2015, the defendant was in possession of 10mm semi-automatic pistol, which he was prohibited from owning because he had previously been convicted of a felony.
This case is the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force, West Metro Drug Task Force, Anoka County Sheriff’s Office, Hennepin County Sheriff’s Office, Sherburne County Sheriff’s Office, Blaine Police Department, Coon Rapids Police Department, Elk River Police Department, Maple Grove Police Department, Medina Police Department, Mounds View Police Department, and U.S. Drug Enforcement Administration.
Assistant U.S. Attorney David Steinkamp is prosecuting the case.
Defendant Information:JAIME EDWARD MCCLELLAN, a/k/a, “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 31
Brooklyn Park, Minn.
Charges:
- Distribution of heroin resulting in death, 1 count
- Conspiring to distribute heroin, 1 count
- Distribution of heroin, 4 counts
- Possession with intent to distribute heroin, 1 count
- Possession of a firearm during and in relation to a drug trafficking crime, 1 count
- Felon in possession of a firearm, 1 count
Plymouth Attorney Sentenced to 41 Months in Prison for Stealing $500,000 from InvestorsRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of TIMOTHY JON OLIVER, 62, for stealing $500,000 from ARS Tectonica, a Mexican construction company, in connection with a purported real estate project in Libya. OLIVER, who pleaded guilty to one count of wire fraud on September 10, 2014, was sentenced on April 1, 2016, before Senior U.S. District Judge Michael J. Davis in U.S. District Court in Minneapolis.
“Lying and stealing are always damaging to the victims and to society writ large,” said Assistant United States Attorney David J. MacLaughlin. “Such conduct is especially egregious, and particularly undermining of trust between people, when it is perpetrated by a licensed attorney, a person on whose advice others rely to conduct themselves in accordance with the law. Mr. Oliver’s disbarment, and his 41-month sentence, appropriately punish him for the deceit and dishonesty to which he pled guilty.”
According the defendant’s guilty plea and documents filed in court, from May 2009 to May 2010, OLIVER controlled two companies, American Diversified Industries, LLC (ADI), which was used to receive proceeds of the scheme, and GVA International Limited, which was purported to be developing a real estate project in Bani Walid, Libya. OLIVER pressured, and ultimately convinced, ARS Tectonica to send $500,000 to ADI to secure a letter of credit from a Minnesota credit union.
According to his guilty plea, OLIVER told ARS Tectonica that the letter of credit would be presented to the Organization for Development of Administrative Centers (ODAC), an arm of the Libyan government, as a performance bond for the real estate project in Libya. He also told ARS Tectonica that, once ODAC approved the letter of credit, it would be awarded the opportunity to become the construction manager for the Bani Walid project.
According to documents filed in court, on May 21, 2009, ARS Tectonica wired $500,000 to OLIVER, which was received through ADI’s account that was maintained by the defendant. Instead of using the money to secure a letter of credit, OLIVER spent the money on unrelated debts. For almost a year thereafter, OLIVER lulled ARS Tectonica into believing that the $500,000 remained at the credit union and was being utilized by the credit union to secure the letter of credit. As part of his sentence, OLIVER is ordered to pay $500,000 in restitution to ARS Tectonica.
This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
Defendant Information:
TIMOTHY JON OLIVER, 62
Plymouth, MN
Convicted:
- Wire fraud, 1 count
Sentenced:
- 41 months in prison
- $750,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former United States Tax Court Judge and Husband Indicted for Conspiracy to Commit Tax Evasion and Obstruction of an IRS AuditRead the Press Release
Diane Kroupa Filed Fraudulent Tax Returns While a Sitting U.S. Tax Court Judge
Kroupa and Her Husband Conspired to Evade More Than $400,000 in Federal Taxes
U.S. Attorney Andrew M. Luger for the District of Minnesota today announced a federal indictment charging Diane L. Kroupa, 60, and her husband, Robert E. Fackler, 62, with conspiring with each other to evade assessment of taxes. Each defendant is charged with conspiracy, tax evasion, making and subscribing false tax returns and obstruction of an Internal Revenue Service (IRS) audit. The defendants are expected to appear later this week in U.S. District Court in Minneapolis, Minnesota.
“The allegations in this indictment are deeply disturbing,” said U.S. Attorney Andrew Luger. “The tax laws of this country apply to everyone, and those of us appointed to federal positions must hold ourselves to an even higher standard.”
“As a former tax court judge, Kroupa dealt regularly with individuals who cheated on their taxes, which makes these allegations particularly troubling,” said Chief Richard Weber of the IRS-Criminal Investigation. “Reporting personal expenses as business expenses on your tax returns is not tolerated, regardless of your job or position. We expect all taxpayers to follow the law –whether you are a business owner, individual, or government official – we all must play by the same rules and pay our fair share.”
According to the indictment and documents filed in court, between 2004 and 2012, Kroupa and Fackler conspired to evade their tax obligations. Kroupa was appointed to the U.S. Tax Court on June 13, 2003, for a term of 15 years, but she retired on June 16, 2014. During the same period, Fackler was a self-employed lobbyist and political consultant who owned and operated a business known as Grassroots Consulting. From 2004 to 2013, Kroupa and Fackler owned a home in Minnesota. From 2007 to 2013, they also leased a second residence in Maryland.
According to the indictment and documents filed in court, as part of the conspiracy to defraud the United States, Kroupa and Fackler fraudulently claimed personal expenses as Grassroots Consulting business deductions. They fraudulently claimed the following personal expenses as deductible business expenses: rent and utilities for the Maryland home; utilities, upkeep and renovation expenses of the Minnesota home; pilates classes; spa and massage fees; jewelry and personal clothing; wine club fees; Chinese language tutoring; music lessons; personal computers; and expenses for vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand.
According to the indictment and documents filed in court, Kroupa and Fackler made a series of other false claims on their tax returns, including failing to report approximately $44,520 that Kroupa received from a 2010 land sale in South Dakota. The defendants falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income.
According to the indictment and documents filed in court, in 2006, Kroupa and Fackler concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit. During a second audit in 2012, Kroupa and Fackler caused misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting.
According to the indictment and documents filed in court, between 2004 and 2010, Kroupa and Fackler purposely understated their taxable income by approximately $1 million and purposely understated the amount of tax they owed by at least $400,000.
This case is the result of an investigation conducted by the IRS-Crimination Investigation and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner and Timothy Rank are prosecuting the case.
Former United States Tax Court Judge and Husband Indicted for Conspiracy to Commit Tax Evasion and Obstruction of an IRS AuditRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging DIANE L. KROUPA, 60, and her husband, ROBERT E. FACKLER, 62, with conspiring with each other to evade assessment of taxes.[1] Each defendant is charged with conspiracy, tax evasion, making and subscribing false tax returns and obstruction of an IRS audit. The defendants are expected to appear later this week in U.S. District Court in Minneapolis, Minn.
“The allegations in this indictment are deeply disturbing,” said United States Attorney Andrew Luger. “The tax laws of this country apply to everyone, and those of us appointed to federal positions must hold ourselves to an even higher standard.”
“As a former tax court judge, Kroupa dealt regularly with individuals who cheated on their taxes, which makes these allegations particularly troubling,” said Richard Weber, Chief, IRS - Criminal Investigation. “Reporting personal expenses as business expenses on your tax returns is not tolerated, regardless of your job or position. We expect all taxpayers to follow the law –whether you are a business owner, individual, or government official – we all must play by the same rules and pay our fair share.”
According to the indictment and documents filed in court, between 2004 and 2012, KROUPA and FACKLER conspired to evade their tax obligations. KROUPA was appointed to the United States Tax Court on June 13, 2003 for a term of 15 years, but she retired on June 16, 2014. During the same period, FACKLER was a self-employed lobbyist and political consultant who owned and operated a business known as Grassroots Consulting. From 2004 to 2013, KROUPA and FACKLER owned a home in Minnesota. From 2007 to 2013, they also leased a second residence in Maryland.
According to the indictment and documents filed in court, as part of the conspiracy to defraud the United States, KROUPA and FACKLER fraudulently claimed personal expenses as Grassroots Consulting business deductions. They fraudulently claimed the following personal expenses as deductible business expenses: rent and utilities for the Maryland home; utilities, upkeep and renovation expenses of the Minnesota home; pilates classes; spa and massage fees; jewelry and personal clothing; wine club fees; Chinese language tutoring; music lessons; personal computers; and expenses for vacations to Alaska, Australia, The Bahamas, China, England, Greece, Hawaii, Mexico and Thailand.
According to the indictment and documents filed in court, KROUPA and FACKLER made a series of other false claims on their tax returns, including failing to report approximately $44,520 that KROUPA received from a 2010 land sale in South Dakota. The defendants falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income.
According to the indictment and documents filed in court, in 2006, KROUPA and FACKLER concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit. During a second audit in 2012, KROUPA and FACKLER caused misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting.
According to the indictment and documents filed in court, between 2004 and 2010, KROUPA and FACKLER purposely understated their taxable income by approximately $1,000,000 and purposely understated the amount of tax they owed by at least $400,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner and Timothy Rank are prosecuting the case.
Defendant Information:
DIANE L. KROUPA, 60
Minnetonka, Minn.Charges:
- Conspiracy to defraud the United States, 1 count
- Tax evasion, 2 counts
- Making and subscribing, 2 counts
- Obstruction of an IRS audit, 1 count
ROBERT E. FACKLER, 62
Minnetonka, Minn.
Charges:
- Conspiracy to defraud the United States, 1 count
- Tax evasion, 2 counts
- Making and subscribing, 2 counts
- Obstruction of an IRS audit, 1 count
Man Charged for Affinity Fraud Scheme that Promised Hmong HomelandRead the Press Release
United States Attorney Andrew M. Luger today announced a federal criminal complaint charging SENG XIONG, 48, with wire fraud for operating an affinity fraud scheme. XIONG was arrested on Thursday, March 24, 2016, at Los Angeles International Airport, prior to boarding a flight bound for Thailand. XIONG made an initial appearance on Friday, March 25, 2016, before United States Magistrate Judge Jacqueline Chooljian in U.S. District Court in Los Angeles, Calif. XIONG was denied bail and ordered remanded into custody pending removal to the District of Minnesota. A next court date has not yet been scheduled.
“This defendant is charged with targeting ethnic Hmong elders,” said United States Attorney Andrew Luger. “I encourage adults and immigrant families to remain on the lookout for thieves who seek to exploit vulnerable victims. My Office, the FBI, and the Minnesota Financial Crimes Task Force, which is comprised of local and federal law enforcement officers, are all resources to seek out if and when you are concerned about a suspicious investment opportunity.”
According to the criminal complaint and documents filed in court, on September 14, 2015, the Appleton, Wisc., Police Department received a tip that Hmong elders were being directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, elders were allegedly promised 10 acres of land, a house and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.
According to the criminal complaint and documents filed in court, on September 28, 2015, law enforcement in Saint Paul, Minn., received information that SENG XIONG was believed to be conducting a fraud scheme through his organizations, “International Fund for Hmong Development,” and “Hmong Tebchaws.” The website for “Hmong Tebchaws,” stated the mission of the organization was to “Pursue Hmong self-ruled (sic) in the mainland of Asia in accordance in international law.” The website also contained links to YouTube videos where more information about the “investment program” was available. Other promises made by “Hmong Tebchaws” included that the organization was working with the White House and United Nations to secure land for the Hmong Homeland, and that China, Japan, Laos, Cambodia and Vietnam have all agreed to acknowledge the Hmong people and have saved a piece of land for the Hmong people.
According to the criminal complaint and documents filed in court, a witness known as “K.X.,” has been following the “Hmong Tebchaws” website. According to the witness, since October 2014 the organization has been posting information on its website and various social media sites and has been hosting conference calls for potential “investors.” K.X. participated in six such calls between April 4, 2015, and September 21, 2015.
According to the criminal complaint and documents filed in court, XIONG was targeting elderly Hmong to make contributions to a future Hmong country that would be created sometime between 2015 and 2030. Different “investment options” were offered, which purported to represent varying levels of return that “founders” would be able to receive on their investments. Investments between $3,000 and $5,000 would guarantee the “investor” and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age.
According to the criminal complaint and documents filed in court, “investors” were ultimately provided XIONG’s name and a bank account associated with XIONG to which they could direct funds.
If you or someone you know could be a victim, please contact the Minnesota Financial Crimes Task Force by sending an email to [email protected].This case is the result of an investigation conducted by the Minnesota Financial Crimes Task Force, Saint Paul Police Department, United States Secret Service, Federal Bureau of Investigation and Appleton Police Department.
Special assistance was provided by the United States Attorney’s Offices for the Eastern District of California.
This case is being prosecuted by Assistant United States Attorney Amber M. Brennan.
Defendant Information:SENG XIONG, 48
No known addressCharges:
- Wire fraud, 1 count
Repeat Offender Sentenced to 121 Months for Possession of Child PornographyRead the Press Release
A Minnesota man was sentenced today to 121 months in prison for possession of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
On Dec. 8, 2015, Frank Russell McCoy, 72, was found guilty of possession of child pornography after a two-day trial. U.S. District Judge Patrick J. Schiltz of the District of Minnesota sentenced McCoy today and also ordered him to serve a 10 year term of supervised release.
According to the evidence presented at sentencing, for years, McCoy has written and distributed short stories describing extreme sexual abuse and other acts of violence perpetrated against very young children. In 2013, he was convicted in the Middle District of Georgia of one count of transportation of obscene matters after sending one such story via the Internet to an Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) undercover agent. In Dec. 2013, while on bond pending appeal of that conviction, McCoy amassed a large numbers of computers and related equipment in his home in Minnesota that, a search requested by his U.S. Probation Officer revealed, contained dozens of videos of child exploitation. Evidence at trial further demonstrated that though McCoy had installed forensic wiping software on his computers in order to destroy any evidence of child exploitation images, he had transferred the majority of those files onto a portable video player device just before the seizure.
Assistant U.S. Attorney Katharine T. Buzicky of the District of Minnesota and former Trial Attorney Jeffrey Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. ICE-HSI and CEOS’s High Technology Investigative Unit investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Repeat Offender Sentenced to 121 Months for Possession of Child PornographyRead the Press Release
An Otsego man was sentenced today to 121 months in prison for possession of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
On Dec. 8, 2015, Frank Russell McCoy, 72, was found guilty of possession of child pornography after a two-day trial. U.S. District Judge Patrick J. Schiltz of the District of Minnesota sentenced McCoy today and also ordered him to serve a 10 year term of supervised release.
According to the evidence presented at sentencing, for years, McCoy has written and distributed short stories describing extreme sexual abuse and other acts of violence perpetrated against very young children. In 2013, he was convicted in the Middle District of Georgia of one count of transportation of obscene matters after sending one such story via the Internet to an Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) undercover agent. In Dec. 2013, while on bond pending appeal of that conviction, McCoy amassed a large numbers of computers and related equipment in his home in Minnesota that, a search requested by his U.S. Probation Officer revealed, contained dozens of videos of child exploitation. Evidence at trial further demonstrated that though McCoy had installed forensic wiping software on his computers in order to destroy any evidence of child exploitation images, he had transferred the majority of those files onto a portable video player device just before the seizure.
Assistant U.S. Attorney Katharine T. Buzicky of the District of Minnesota and former Trial Attorney Jeffrey Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. ICE-HSI and CEOS’s High Technology Investigative Unit investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
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Child Pornographer Sentenced to 33 1/3 Years in PrisonRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of SEAN GERALD PENONCELLO, 42, for the production of child pornography involving two minor victims. On June 9, 2015, PENONCELLO was charged by superseding indictment with two counts of producing child pornography and one count of possessing child pornography. Following a three-day trial before Judge Patrick J. Schiltz, a jury on September 23, 2015, found PENONCELLO guilty of all counts. The defendant was sentenced today before Judge Schiltz.
“Penoncello is a predator,” said Assistant United States Attorney Laura Provinzino. “Not only did he commit a series of heinous crimes against women and children, but he also showed not one iota of remorse to his victims, including a 5-year-old girl entrusted to his care. The long sentence handed down today is warranted.”
“The FBI remains committed to protecting those who are most vulnerable,” said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “Those who would engage in the production, distribution, or viewing of child pornography will always be on the radar of law enforcement.”
As proven at trial, on April 3, 2014, a series of nude images of an unidentified five-year-old minor were submitted to the National Center for Missing and Exploited Children (NCMEC) that were traced back to PENONCELLO’s residence in Cherry, Minn. On March 27, 2015, law enforcement executed a search warrant of PENONCELLO’s residence and recovered two hidden thumb drives and a surreptitious recording device taken from PENONCELLO’s truck.
As proven at trial, the evidence contained on the two thumb drives revealed sexually explicit images and videos of a second minor victim, produced when the victim was 14-years-old. The thumb drives also contained numerous pornographic images and videos of other known NCMEC-identified minor victims.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the St. Louis County Sheriff’s Office, with assistance from the St. Louis County Attorney’s Office, Virginia Police Department and Eveleth Police Department.
This was prosecuted by Assistant U.S. Attorneys Laura M. Provinzino and Benjamin F. Langner.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant Information:
SEAN GERALD PENONCELLO, 42
Iron, Minn.
Convicted:
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Production of Child Pornography, 2 counts
- Possession of Child Pornography, 1 count
Sentenced:
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33 1/3 years in prison
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10 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Georgia Man Charged with Flying from Georgia to Minnesota to Have Sex with 13-Year-Old GirlRead the Press Release
United States Attorney Andrew M. Luger today announced a federal criminal complaint charging JOHN JAMES DENICOLA, 55, with traveling from the Atlanta, Ga., area to the Twin Cities for the purpose of having sex with a 13-year-old girl in Bloomington hotel. DENICOLA made an initial appearance today in U.S. District Court in St. Paul, Minn., before Magistrate Judge Hildy Bowbeer. A detention hearing is expected to be held on Friday, March 11, 2016.
“The sexual exploitation of children is a heinous crime,” said U.S. Attorney Luger. “According to the complaint, this 55-year-old defendant flew to Minnesota to have sex with an eighth grader. Working with our law enforcement partners, we are actively preventing predators from sexually exploiting vulnerable children and we will continue to prosecute those who attempt to engage in such activity to the fullest extent of the law.”
“With this arrest, HSI has taken a suspected pedophile off the street and has prevented the potential abuse of additional innocent victims,” said HSI St. Paul Acting Special Agent in Charge William Lowder. “The sexual abuse of children is an unconscionable crime that will not be tolerated. HSI will use all the resources at its disposal to combat this reprehensible behavior and seek justice for the victims.”
According to the criminal complaint and documents filed in court, on February 26, 2016, DENICOLA, using the screen name “Johnnyman,” initiated a conversation on teenchat.com with an undercover law enforcement officer who DENICOLA believed was a 13-year-old girl. During the conversation, DENICOLA asked the undercover agent questions of a sexual nature, sent a picture of himself to the undercover agent, and told the agent that he had previously traveled to Nebraska to “meet a girl.” DENICOLA also told the agent that he would try to take time off from work to travel to the Twin Cities on March 7, 2016, to see the agent.
According to the criminal complaint and documents filed in court, DENICOLA repeatedly expressed concern to the undercover agent that “she” was a law enforcement officer. During the communications, the undercover agent repeatedly stated that “she” was a 13-year-old girl and an eighth grader. During the Kik Messenger conversation, DENICOLA asked numerous questions about the undercover agent’s sexual experience and also indicated various sexual acts in which he wished to engage with “her.” The defendant also indicated to the undercover agent that he had previously had sex with three or four other young girls on separate occasions.
According to the criminal complaint and documents filed in court, DENICOLA and the undercover agent continued to message one another using Kik Messenger. On February 29, 2016, DENICOLA sent the undercover agent the itinerary for his upcoming trip, which indicated that DENICOLA would fly on March 7, 2016, from Atlanta to Minneapolis/St. Paul. The defendant indicated to the undercover agent that he would bring a video recording device and that he had booked a room at the Park Plaza Hotel in Bloomington, Minn.
According to the criminal complaint and documents filed in court, upon arrival in Minnesota, DENICOLA went to a local Target and bought condoms and candles. He also went to a local florist and bought several bouquets of flowers and helium balloons that read “love you,” or words to that effect. DENICOLA was arrested inside the hotel room he had rented for his planned rendezvous. A video camera was found in DENICOLA’s room at the time of his arrest.
This case is the result of an investigation conducted by Homeland Security Investigations (HSI) Twin Cities, HSI Atlanta, HSI Laredo and HSI San Jose.
This case is being prosecuted by Assistant United States Attorney Carol M. Kayser.
Defendant Information:
JOHN JAMES DENICOLA, 55
Suwanee, Ga.
Charges:
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Traveling with the intent to engage in illicit sexual conduct, 1 count
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Attempted coercion and enticement, 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.
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Minnesota Resident Pleads Guilty to Threatening Two Clinics that Provide Reproductive Health ServicesRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Andrew M. Luger of the District of Minnesota announced today that Michael John Harris, 33, pleaded guilty to making telephonic threats to two clinics that provide reproductive health services in Minneapolis.
In connection with his plea, Harris admitted that on May 12, 2014, he made telephonic threats to two different health clinics in Minneapolis that provide reproductive health services. In his call to the first clinic, Harris threatened to kill the person on the other end of the call using his bare hands, and then cut the person’s head off with a band saw. In his call to the second clinic, Harris said he would kill the person on the other end of the call and everyone else who worked there, and that he was going to travel to the clinic and shoot everyone present. Harris admitted that he made these threats to intimidate people from obtaining or providing reproductive health services.
“Harris’s violent threats against clinics that provide reproductive health services constitute a serious attack on an important right guaranteed by law,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to vigorously prosecute those who seek to interfere with access to reproductive health care.”
“Our Constitution allows for a healthy debate on important issues of public concern,” said U.S. Attorney Luger. “Threatening the lives of health care workers is not a legitimate means of voicing dissent. Today’s guilty plea serves as an important reminder that our disagreements cannot devolve into violent threats.”
Harris faces a maximum penalty of one year in prison for each of the two counts.
This case is being investigated by the FBI, and is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Manda M. Sertich of the District of Minnesota.
Minnesota Resident Pleads Guilty to Threatening Two Clinics That Provide Reproductive Health ServicesRead the Press Release
WASHINGTON – Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Andrew M. Luger of the District of Minnesota announced today that Michael John Harris, 33, pleaded guilty to making telephonic threats to two clinics that provide reproductive health services in Minneapolis.
In connection with his plea, Harris admitted that on May 12, 2014, he made telephonic threats to two different health clinics in Minneapolis that provide reproductive health services. In his call to the first clinic, Harris threatened to kill the person on the other end of the call using his bare hands, and then cut the person’s head off with a band saw. In his call to the second clinic, Harris said he would kill the person on the other end of the call and everyone else who worked there, and that he was going to travel to the clinic and shoot everyone present. Harris admitted that he made these threats to intimidate people from obtaining or providing reproductive health services.
“Harris’s violent threats against clinics that provide reproductive health services constitute a serious attack on an important right guaranteed by law,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to vigorously prosecute those who seek to interfere with access to reproductive health care.”
“Our Constitution allows for a healthy debate on important issues of public concern,” said U.S. Attorney Luger. “Threatening the lives of health care workers is not a legitimate means of voicing dissent. Today’s guilty plea serves as an important reminder that our disagreements cannot devolve into violent threats.”
Harris faces a maximum penalty of one year in prison for each of the two counts.
This case is being investigated by the FBI, and is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Manda M. Sertich of the District of Minnesota.
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Investment Advisor Pleads Guilty to Stealing from Clients in Minnesota and WisconsinRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of LEVI DAVID LINDEMANN, 40, for stealing from investment advisory clients. LINDEMANN was indicted on December 22, 2015, for one count of mail fraud and one count of money laundering. He pleaded guilty today to the entire indictment against him before U.S. District Judge Donovan W. Frank in U.S. District Court in Saint Paul, Minn. A sentencing date has not yet been determined.
According to the defendant’s guilty plea, between 2009 and 2014, LINDEMANN owned and operated Gershwin Financial, Inc., an investment management company that did business under the name, Alternative Wealth Solutions (AWS). Through AWS, LINDEMANN provided financial planning and asset management services, and sold insurance annuities and investment products to clients in Minnesota and Wisconsin.
According to the defendant’s guilty plea, LINDEMANN used AWS to solicit investor funds from approximately 50 investor clients. LINDEMANN encouraged his clients to surrender to him their retirement accounts so that he could invest funds on their behalf. LINDEMANN induced clients to entrust him with their money by falsely representing that he would use the invested funds to buy secured notes or other legitimate investment vehicles. Instead of investing their money into legitimate investment vehicles, LINDEMANN used the invested funds to pay personal expenses, convert the investments to cash for his own use, purchase an Infiniti QX56 sport utility vehicle and to make Ponzi-type payments of promised returns to other investors.
According to his guilty plea, LINDEMANN took steps to conceal his fraudulent activity and lull investor-clients by creating counterfeit secured notes and providing them to investor-clients as proof of their investment.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau, Criminal Investigation Division of the IRS and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
Defendant Information:
LEVI DAVID LINDEMANN, 40
Stillwater, Minn.
Convicted:
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Mail fraud, 1 count
- Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Seven Defendants Plead Guilty to Roles in Violent South Minneapolis GangRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of the remaining two defendants from an August 2015 indictment charging seven members of the 10z and 20z street gangs with crimes related to a multi-year gang war with their rivals, which included a shooting attack in August 2014 outside of the Hennepin County Medical Center in which the hospital was peppered with gunfire. The defendants include both leaders and other members of the 10z and 20z. Four defendants pleaded guilty to conspiracy to possess firearms in the furtherance of a drug trafficking conspiracy, including the guilty pleas today of DANIEL ALFRED ADAMS, a/k/a “Funk,” and PERCY MINIFER LACEY, JR., a/k/a “P3.” Two defendants earlier this month pleaded guilty to illegally possessing ammunition and one pleaded guilty to distribution of cocaine base. Each defendant pleaded guilty before U.S. District Judge Patrick Schiltz in U.S. District Court in Minneapolis, Minn.
“Seven gang members are now behind bars,” said U.S. Attorney Luger. “Today’s guilty pleas are an important step forward for public safety, but our work is not done. Already this year, there have been dozens of shots-fired incidents across Minneapolis. Working together with all our law enforcement partners, including the ATF and Minneapolis Police Department, we are committed to ending the gun violence that disrupts the peacefulness of neighborhoods across Minneapolis.”
According to the defendants’ guilty pleas and documents filed in court, between at least January 2013 and August 2015, the 10z and the 20z gangs operated in South Minneapolis, primarily between Franklin Avenue, and Lake Street, and I-35W and Minnehaha Avenue. Their primary purpose was to make money for the gang members through the sale of illegal drugs, including crack cocaine, heroin, and marijuana. As part of their drug trafficking operation, members of the gangs routinely engaged in gun violence with rival gangs. The purpose of this violence was to protect drug dealing territory controlled by the 10z and 20z, to protect individual drug distributors from rival gang violence, to attack and seize drug dealing territory controlled by rival gangs, and to attack and rob drug distributors associated with rival gangs.
According to the defendants’ guilty pleas and documents filed in court, the 10z and 20z were involved in a gang war with their primary rival gangs, the Bloods and the Bogus Boys. The gang war was very violent and resulted in shootings of gang members on both sides, some of which caused the death of gang members. Virtually all of these shootings were the product of disputes over territory, robberies of rival drug dealers, or retaliatory violence.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Defendant Information:
DANIEL ALFRED ADAMS, a/k/a “Funk,” 29
Minneapolis, Minn.
Convicted:
Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
CLARENCE JAMES DICKENS, JR., a/k/a “Claro,” a/k/a, “Sneaky,” 24
Roseville, Minn.
Convicted:
Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
ANTHONY PIERRE DOSS, a/k/a “Two Tone,” a/k/a “Tony,” 25
Brooklyn Park, Minn.
Convicted:
Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
PERCY MINIFER LACEY, JR., a/k/a “P3,” 22
Richfield, Minn.
Convicted:
Conspiracy to possess firearms in furtherance of a drug trafficking crime, 1 count
THOMAS DUPREE BENNETT, a/k/a “Deandre Clay,” a/k/a “Trigga,” 28
Minneapolis, Minn.
Convicted:
Felon in possession of ammunition, 1 count
ANDREW INDELICATO PETERSON, a/k/a “Boo Boo,” 25
St. Louis Park, Minn.
Convicted:
Felon in possession of ammunition, 1 count
PAUL ANTONIO EARLY, a/k/a “Stamps,” a/k/a, “Man Man,” 23
Minneapolis, Minn.
Convicted:
Distribution of cocaine base, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Defendants Convicted of Distributing Thousands of Pounds of Marijuana Ordered to Forfeit California Grow Farm and FirearmsRead the Press Release
United States Attorney Andrew M. Luger today announced that ALEXANDER EDWARD HEYING, 33, who was sentenced last month to serve 140 months in prison after being convicted in after trial November 2014 of conspiracy to distribute several tons of marijuana and conspiracy to commit money laundering, was ordered on February 23, 2016, to forfeit his Ukiah, Calif., farm on which he grew marijuana, a residence in Minnetonka, Minn., a truck and two guns. Also convicted in this conspiracy were PETER GREGORY HEYING, 29, and ACACIA LAUREN RUIZ, 35. PETER HEYING and RUIZ pleaded guilty in October 2014 to the charges against them and were sentenced on January 22, 2016.
As proven at trial and according to the defendants’ guilty pleas, between at least 2003 and October 2012, the HEYING brothers and RUIZ conspired to distribute marijuana in Minnesota. During the course of the conspiracy, the co-conspirators were responsible for trafficking several tons of marijuana into Minnesota, primarily from large-scale grow farms in California.
As a result of the conspiracy and money laundering convictions, the United States moved to forfeit property because the property facilitated the conspiracy, including the grow farm from which marijuana was harvested and sold.
These cases resulted from an investigation conducted by the Drug Enforcement Administration, Criminal Investigation Division of the IRS, Hennepin County Sheriff’s Office, West Metro Drug Task Force, Southwest Hennepin Drug Task Force, West Hennepin Public Safety, Wisconsin Department of Justice, Division of Criminal Investigation, Medina Police Department and the Orono Police Department.
This case was prosecuted by Assistant U.S. Attorneys LeeAnn Bell, Surya Saxena and Craig Baune.
Defendant Information:
ALEXANDER EDWARD HEYING, 33
Minnetonka, Minn.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 140 months in prison
PETER GREGORY HEYING, 29
Minnetonka, Minn.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- Three years in prison
ACACIA LAUREN RUIZ, 35
Ukiah, Calif.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- Time served
Saint Paul Man Indicted for Dealing Firearms without a LicenseRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging EITAN BENJAMIN FELDMAN, 28, for illegally dealing in firearms without a license and lying on at least nine firearms transaction records (Form 4473).[1] The defendant is expected to appear later today before Magistrate Judge Mayeron in United States District Court in Minneapolis, Minn.
“There is far too much gun violence in the Twin Cities,” said U.S. Attorney Luger. “Violent crimes involving guns are often committed by people who cannot legally obtain a firearm, but they find a way. According to today’s indictment, Eitan Feldman was one of those ways. This defendant engaged in the business of dealing guns without a license. He didn’t conduct background checks on the people to whom he sold the guns, and at least three of the guns were connected to Twin Cities crime scenes. Thanks to the dedicated special agents of the ATF, Feldman today is in custody and there is one less backdoor through which potential criminals can get a gun.”
“Today’s arrest should send a message to unlicensed firearm dealers who put the public at risk each time they sell a firearm to a potential criminal,” said ATF St. Paul Field Division Special Agent in Charge James Modzelewski. “They are recklessly circumventing the criminal background check system and it is a crime.”
According to the indictment and documents filed in court, between January 2014 and January 2016, FELDMAN engaged in a regular pattern and practice of unlawfully dealing in firearms without a license by repeatedly purchasing firearms and offering them for resale within days of getting them. FELDMAN routinely purchased firearms offered by out-of-state Federal Firearms Licensees (FFLs) through websites such as gunbroker.com, an online firearms auction site. FELDMAN arranged to have the firearms transferred to L.E. Gun Sales, a FFL in Minnesota, where he received and took possession of the guns after completing and signing the appropriate documentation and submitting to a National Instant Criminal Background System (NICS) check.
According to the indictment and documents filed in court, during the same time period, FELDMAN regularly listed and offered the same firearms for sale – often at a higher price than what he paid – on armslist.com, a website that allows individuals to list firearms for sale. Of the 41 guns FELDMAN purchased and re-sold during this time, the average time he actually possessed a gun before offering it for resale was only nine days.
According to the indictment and documents filed in court, FELDMAN would sometimes include on his for-sale listings on armslist.com a false story indicating that he had actually owned a particular firearm for much longer than he had or concoct a reason why he was then selling the gun. For example, on one listing for a 20-guage pump-action shotgun that FELDMAN had possessed for only two days before listing on armslist.com, FELDMAN wrote that he, “is a gun collector, has had the shotgun for two years, never shot it.” On another listing for a .38 caliber handgun that he had possessed for only seven days before listing for resale, FELDMAN wrote, “bought a couple of years ago but only taken to the range a few times.” In yet another listing for a semiautomatic 9mm carbine rifle that he had possessed for only six days, FELDMAN claimed that the rifle had been “sitting in [his] closet for a few months” and that he had not fired it for about four months.
According to the indictment and documents filed in court, in July 2015, an ATF Special Agent told FELDMAN that some of the firearms he had received at L.E. Gun Sales, and subsequently sold, had been linked to crime scenes within days of FELDMAN taking possession of and selling the guns.
According to the indictment and documents filed in court, on April 26, 2015, the Minneapolis Police Department (MPD) recovered a loaded Ruger .380 pistol when responding to a gun-pointing assault. The weapon was submitted for National Integrated Ballistics Information Network (NIBIN) analysis, which showed that the weapon had also been used on March 19, 2015, in a shots-fired incident from which MPD recovered two spent shell casings. FELDMAN had purchased this same weapon on March 12, 2015, only seven days before the shots-fired incident and 45 days before it was recovered from the gun-pointing crime scene.
According to the indictment and documents filed in court, on May 28, 2015, MPD responded to a narcotics call, during which they recovered a Bersa Thunder .380. This same gun had been purchased by FELDMAN 18 days earlier on May 10, 2015.
According to the indictment and documents filed in court, on August 25, 2015, Bloomington Police (BPD) identified and stopped several vehicles involved in the transport of at least 50 pounds of marijuana from California to Minnesota. In one of the vehicles, BPD officers recovered a backpack containing two loaded handguns, one of which was a Taurus .38-caliber revolver. One of the suspects admitted that both guns belonged to him and that he had bought the Taurus revolver from a private seller in Minneapolis. That same gun was purchased only three months earlier by FELDMAN on May 10, 2015.
According to the indictment and documents filed in court, on July 17, 2015, ATF Special Agents executed a search warrant at FELDMAN’s home in Saint Paul, Minn., and seized five shotguns. FELDMAN had completed the transfer of each shotgun at L.E. Gun Sales and had listed and offered each shotgun for resale on armslist.com between two and 25 days of receiving them at L.E. Gun Sales. ATF Special Agents also recovered three firearm bills of sale, showing that FELDMAN had sold four firearms to three different individuals. FELDMAN had received the four firearms at L.E. Gun Sales between three and 24 days before reselling them.
According to the indictment and documents filed in court, during at least nine transactions at L.E. Gun Sales in which FELDMAN received the four firearms seized during the search and 23 other firearms that he offered for resale, he falsely represented his residential address on the Form 4473.
According to the indictment and documents filed in court, on October 2, 2015, ATF Special Agents served FELDMAN with a written Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law, warning him that his continuous and repetitive firearm-related activity appears to make him an unlicensed “dealer in firearms” and that he should stop immediately or risk criminal prosecution. Despite the warning, FELDMAN continued his unlawful dealing in firearms on at least eight more occasions.
According to the indictment and documents filed in court, on December 3, 2015, ATF Special Agents made an undercover purchase of a .38-caliber revolver from FELDMAN, a gun that he had received 10 days prior. The undercover officer paid FELDMAN $260 cash in the parking lot of a local shopping mall. FELDMAN never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. FELDMAN conducted no background check.
According to the indictment and documents filed in court, on January 21, 2016, ATF Special Agents made an undercover purchase of a Hi-Point 9mm semiautomatic carbine rifle from FELDMAN, a gun that he had received seven days prior. The undercover officer paid FELDMAN $250 cash in the parking lot of a local shopping mall. FELDMAN never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Again, FELDMAN conducted no background check.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, Saint Paul Police Department and Bloomington Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:
EITAN BENJAMIN FELDMAN, 29
Saint Paul, Minn.
Charges:
- Willfully engaging in the business of dealing in firearms without a license, 1 count
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Making a false statement during a firearm purchase, 9 counts
[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Minnesota Man Indicted for Dealing Firearms without a LicenseRead the Press Release
At Least Three Guns Sold by Feldman Were Recovered From or Connected to Twin Cities Crime Scenes
U.S. Attorney Andrew M. Luger for the District of Minnesota today announced a federal indictment charging Eitan Benjamin Feldman, 28, of Saint Paul, Minnesota, for illegally dealing in firearms without a license and lying on at least nine firearms transaction records. The defendant is expected to appear later today before Magistrate Judge Mayeron in U.S. District Court in Minneapolis, Minnesota.
“There is far too much gun violence in the Twin Cities,” said U.S. Attorney Luger. “Violent crimes involving guns are often committed by people who cannot legally obtain a firearm, but they find a way. According to today’s indictment, Feldman was one of those ways. This defendant engaged in the business of dealing guns without a license. He didn’t conduct background checks on the people to whom he sold the guns and at least three of the guns were connected to Twin Cities crime scenes. Thanks to the dedicated special agents of the ATF, Feldman today is in custody and there is one less backdoor through which potential criminals can get a gun.”
“Today’s arrest should send a message to unlicensed firearm dealers who put the public at risk each time they sell a firearm to a potential criminal,” said Special Agent in Charge James Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) St. Paul Field Division. “They are recklessly circumventing the criminal background check system and it is a crime.”
According to the indictment and documents filed in court, between January 2014 and January 2016, Feldman engaged in a regular pattern and practice of unlawfully dealing in firearms without a license by repeatedly purchasing firearms and offering them for resale within days of getting them. Feldman routinely purchased firearms offered by out-of-state Federal Firearms Licensees (FFLs) through websites such as gunbroker.com, an online firearms auction site. Feldman arranged to have the firearms transferred to L.E. Gun Sales, a FFL in Minnesota, where he received and took possession of the guns after completing and signing the appropriate documentation and submitting to a National Instant Criminal Background System (NICS) check.
According to the indictment and documents filed in court, during the same time period, Feldman regularly listed and offered the same firearms for sale – often at a higher price than what he paid – on armslist.com, a website that allows individuals to list firearms for sale. Of the 41 guns Feldman purchased and re-sold during this time, the average time he actually possessed a gun before offering it for resale was only nine days.
According to the indictment and documents filed in court, Feldman would sometimes include on his for-sale listings on armslist.com a false story indicating that he had actually owned a particular firearm for much longer than he had or concoct a reason why he was then selling the gun. For example, on one listing for a 20-guage pump-action shotgun that Feldman had possessed for only two days before listing on armslist.com, Feldman wrote that he, “is a gun collector, has had the shotgun for two years, never shot it.” On another listing for a .38 caliber handgun that he had possessed for only seven days before listing for resale, Feldman wrote, “bought a couple of years ago but only taken to the range a few times.” In yet another listing for a semiautomatic 9mm carbine rifle that he had possessed for only six days, Feldman claimed that the rifle had been “sitting in [his] closet for a few months” and that he had not fired it for about four months.
According to the indictment and documents filed in court, in July 2015, an ATF Special Agent told Feldman that some of the firearms he had received at L.E. Gun Sales and subsequently sold, had been linked to crime scenes within days of Feldman taking possession of and selling the guns.
According to the indictment and documents filed in court, on April 26, 2015, the Minneapolis Police Department (MPD) recovered a loaded Ruger .380 pistol when responding to a gun-pointing assault. The weapon was submitted for National Integrated Ballistics Information Network (NIBIN) analysis, which showed that the weapon had also been used on March 19, 2015, in a shots-fired incident from which MPD recovered two spent shell casings. Feldman had purchased this same weapon on March 12, 2015, only seven days before the shots-fired incident and 45 days before it was recovered from the gun-pointing crime scene.
According to the indictment and documents filed in court, on May 28, 2015, MPD responded to a narcotics call, during which they recovered a Bersa Thunder .380. This same gun had been purchased by Feldman 18 days earlier on May 10, 2015.
According to the indictment and documents filed in court, on Aug. 25, 2015, Bloomington Police (BPD) identified and stopped several vehicles involved in the transport of at least 50 pounds of marijuana from California to Minnesota. In one of the vehicles, BPD officers recovered a backpack containing two loaded handguns, one of which was a Taurus .38-caliber revolver. One of the suspects admitted that both guns belonged to him and that he had bought the Taurus revolver from a private seller in Minneapolis. That same gun was purchased only three months earlier by Feldman on May 10, 2015.
According to the indictment and documents filed in court, on July 17, 2015, ATF Special Agents executed a search warrant at Feldman’s home in Saint Paul and seized five shotguns. Feldman had completed the transfer of each shotgun at L.E. Gun Sales and had listed and offered each shotgun for resale on armslist.com between two and 25 days of receiving them at L.E. Gun Sales. ATF Special Agents also recovered three firearm bills of sale, showing that Feldman had sold four firearms to three different individuals. Feldman had received the four firearms at L.E. Gun Sales between three and 24 days before reselling them.
According to the indictment and documents filed in court, during at least nine transactions at L.E. Gun Sales in which Feldman received the four firearms seized during the search and 23 other firearms that he offered for resale, he falsely represented his residential address on the Form 4473.
According to the indictment and documents filed in court, on Oct. 2, 2015, ATF Special Agents served Feldman with a written Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law, warning him that his continuous and repetitive firearm-related activity appears to make him an unlicensed “dealer in firearms” and that he should stop immediately or risk criminal prosecution. Despite the warning, Feldman continued his unlawful dealing in firearms on at least eight more occasions.
According to the indictment and documents filed in court, on Dec. 3, 2015, ATF Special Agents made an undercover purchase of a .38-caliber revolver from Feldman, a gun that he had received 10 days prior. The undercover officer paid Feldman $260 in the parking lot of a local shopping mall. Feldman never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Feldman conducted no background check.
According to the indictment and documents filed in court, on Jan. 21, 2016, ATF Special Agents made an undercover purchase of a Hi-Point 9mm semiautomatic carbine rifle from Feldman, a gun that he had received seven days prior. The undercover officer paid Feldman $250 in the parking lot of a local shopping mall. Feldman never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Again, Feldman conducted no background check.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, Saint Paul Police Department and Bloomington Police Department.
Assistant U.S. Attorney Benjamin Bejar for the District of Minnesota is prosecuting the case.
Fourth Minnesota Man Pleads Guilty to Conspiracy to Provide Material Support to ISILRead the Press Release
Five Co-Defendants Expected to Go to Trial in May 2016
Abdirizak Mohamed Warsame, 20, of Egan, Minnesota, pleaded guilty today to an information charging him with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The defendant pleaded guilty before Senior U.S. District Judge Michael J. Davis of the District of Minnesota.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Andrew M. Luger of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division made the announcement.
“With his guilty plea, Abdirizak Mohamed Warsame has admitted to conspiring to provide material support to ISIL,” said Assistant Attorney General Carlin. “Warsame was part of a group of individuals who sought to travel to Syria to fight with the designated foreign terrorist organization. The National Security Division’s highest priority is counterterrorism, and we will continue to work to stem the flow of foreign fighters abroad and hold accountable those who conspire to provide material support to terrorists.”
“ISIL recruiting in Minnesota is an ongoing problem,” said U.S. Attorney Luger. “Federal law enforcement and our local partners remain dedicated to ending terror recruitment in our state. One of the important factors we believe will help stop the recruiting pipeline is for those who have been charged to take responsibility for their crimes. I am encouraged that today Mr. Warsame is doing just that. He has now taken the first step to help himself begin the process of rehabilitation and help our entire community begin to heal.”
“Preventing terrorism in the United States or against U.S. interests remain the FBI’s top priority,” said Special Agent in Charge Thornton. “This includes identifying individuals who aspire to travel overseas to fight on behalf of foreign terrorist organizations such as ISIL. Every person we stop from joining ISIL is one less person ISIL has to conduct acts of terror and the atrocities they are known for. This Joint Terrorism Task Force investigation which culminated in today’s guilty plea was the result of collaboration with our state, local, and federal partners.”
According to the defendant’s guilty plea, throughout early 2014, Warsame participated in several meetings with a group of individuals who wished to travel to Syria to join ISIL. Warsame and his co-conspirators discussed means of funding travel to Syria and potential routes from Minnesota to Syria that would best elude law enforcement. In April 2014, Warsame applied for an expedited passport with the intent of using the passport to travel overseas to join ISIL and in that same month, provided approximately $200 to co-conspirator Adnan Farah for fees associated with Farah’s expedited passport application. Warsame knew Farah planned to use the passport to travel to Syria to join ISIL.
According to the defendant’s guilty plea, during a May 2014 meeting between Warsame and his co-conspirators, Warsame accepted the position of “emir,” or leader, of the group. Guled Ali Omar had previously been “emir,” but was at that time planning to depart for Syria to join ISIL.
According to the plea, in June 2014, Warsame obtained a phone number for H.K., who at the time was an ISIL fighter, and Warsame passed the contact information along to Y.J., who was then attempting to travel from Turkey to Syria to join ISIL.
In April 2015, according to his guilty plea, Warsame participated in a series of meetings with co-conspirators Omar, Abdirahman Daud, Mohamed Farah and Adnan Farah. At one of the meetings, Warsame repeatedly encouraged Omar to travel to Syria to join ISIL.
This case is the result of an investigation conducted by members of the FBI-led Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and John Docherty of the District of Minnesota with assistance provided by the National Security Division’s Counterterrorism Section.
Former Member of Croatian Defense Council in Bosnia and Herzegovina Sentenced for Fraudulently Obtaining Green Card and Consents to Removal from United StatesRead the Press Release
A Forrest Lake, Minnesota, man was sentenced today for failing to disclose, during his immigration to the United States, multiple crimes committed in Bosnia and Herzegovina before and during the Bosnian Conflict in the 1990s, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
Zdenko Jakiša, 47, stipulated to an order of judicial removal from the United States, in which he agreed that he is not lawfully admissible in the United States and on Feb. 16, 2016, will self-surrender to U.S. Immigration and Customs Enforcement (ICE) for removal. Jakiša was sentenced to time served by U.S. District Judge Susan Richard Nelson of the District of Minnesota.
According to the plea agreement, Jakiša is a Bosnian citizen and between July 1990 and October 1997, he was convicted of various crimes and charged with others in Bosnia, including a conviction for shooting and killing his neighbor through her bedroom window in September 1993. While some of these charges remained pending in Bosnia, Jakiša fled to the United States where, he now admits, he lied about his criminal history on his legal permanent resident applications and was granted lawful permanent resident status in the United States.
The ICE Homeland Security Investigations St. Paul, Minnesota, Office investigated the case with support from the FBI’s Minneapolis Field Office. ICE’s Human Rights Violators and War Crimes Center provided the lead in this investigation. The Criminal Division’s Office of International Affairs and their counterparts at the Prosecutor’s Office of Bosnia and Herzegovina provided valuable assistance.
Trial Attorney Ann Marie Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Nathan P. Petterson of the District of Minnesota prosecuted the case.
Federal Jury Finds St. Paul Man Guilty of Armed Robbery of Roseville Pawn ShopRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of MARVIN SPENCER, 53, for the armed robbery of Pawn America in Roseville, Minn., on July 21, 2014. On April 8, 2015, SPENCER was charged in a superseding indictment with one count of Interference with Commerce by Robbery; one count of Conspiracy to Interfere with Commerce by Robbery; one count of Using, Carrying and Discharging a Firearm During and in Relation to a Crime of Violence; and one count of Being a Felon in Possession of Ammunition. On February 3, 2016, following a three-day trial, a federal jury found SPENCER guilty on all counts.
As proven at trial, on July 21, 2014, at approximately 5:30 p.m., SPENCER, and co-defendant DERRICK LYNCH, entered the Roseville, Minn. Pawn America. SPENCER, who was armed with a semi-automatic handgun, shot a store employee in the leg and then fired at least one more round in the direction of several store employees. While SPENCER was shooting, LYNCH used a heavy tool to smash a display case and then removed approximately $58,350 worth of jewelry from the case. Before leaving the pawn shop, SPENCER helped LYNCH place the stolen jewelry into a duffle bag.
As proven at trial, SPENCER and LYNCH fled the scene in a vehicle with one other individual who later admitted involvement in receiving some of the stolen jewelry. LYNCH was apprehended in Woodbury, Minn., on August 8, 2014. SPENCER was arrested in Moline, Ill., on August 26, 2014. SPENCER, a career criminal with a violent history, admitted to discharging a firearm during the robbery, but claimed that the first shot was accidental. LYNCH, who was indicted on October 7, 2014, pleaded guilty on December 17, 2014, to the armed robbery and to aiding and abetting SPENCER in using and, carrying and discharging the firearm. Sentencing hearings will be set at a later date.
The case is being prosecuted by Assistant U.S. Attorneys Thomas Hollenhorst and Benjamin Bejar.
This case is the result of an investigation conducted by the Roseville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Moline Police Department.
Defendant Information:
MARVIN SPENCER, 53
St. Paul, MN
Convicted:
- Interference with Commerce by Robbery, 1 count
- Conspiracy to Interfere with Commerce by Robbery, 1 count
- Using, Carrying and Discharging a Firearm During and in Relation to a Crime 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
Minnesota Chiropractor Indicted for Tax EvasionRead the Press Release
WASHINGTON – A federal grand jury sitting in Minneapolis returned an indictment on Feb. 1, which was unsealed today, charging a chiropractor with one count of tax evasion and one count of passing a fictitious obligation, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Andrew Luger of the District of Minnesota announced today.
According to the allegations in the indictment, Donald Gibson failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2004 through 2010 to report his income from his work as a chiropractor. In May 2012, the IRS informed Gibson that he owed approximately $330,000 in federal income taxes for those years. Gibson allegedly evaded paying his federal income taxes for 2004 through 2010 by, among other things, cashing his business checks at a check-cashing facility, purchasing money orders and directing his income onto stored-value debit cards. Gibson is further alleged to have used Sovereign Christian Mission, a nonprofit corporation he registered with the Oregon Secretary of State, to hide his income and pay his personal expenses. The indictment also charges Gibson with submitting a fake bond that he claimed to be valued at $300 million to the Department of the Treasury to pay off his tax liabilities.
If convicted, Gibson faces a statutory maximum sentence of five years in prison for the tax evasion charge and a statutory maximum sentence of 25 years in prison for the passing a fictitious obligation charge.
An indictment is not a finding of guilt. The individual charged in the indictment is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Luger thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Ryan R. Raybould of the Tax Division and Assistant U.S. Attorney Joseph Thompson of the District of Minnesota, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website
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Tennessee Man Sentenced to 96 Months in Prison for Driving to Minnesota to Have Sex with 13-Year-Old GirlRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of JEFFREY SCOTT EVANS, 51, to 96 months in federal prison for with traveling from Tennessee to Bloomington, Minnesota, for the purpose of engaging in illicit sexual conduct with a 13-year-old female. EVANS pleaded guilty on August 11, 2015, and was sentenced on January 22, 2016, before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn.
“The sexual exploitation of children by predators has reached epidemic proportions nationally and internationally,” said acting Special Agent in Charge William Lowder of HSI St. Paul. “Targeting these predators through the tireless efforts by our HSI special agents has been a high priority for more than a decade. These cases demonstrate how every parent must remain vigilant to Internet predators who may pose in various disguises to meet and ultimately sexually exploit children.”
According to the defendant’s guilty plea and documents filed in court, on June 12, 2015, EVANS used the screen name “taboolooking” on a social media site called “chathour.com,” to initiate a conversation with another user who EVANS believed to be a 13-year-old female. This user was actually an undercover federal agent. EVANS quickly turned the conversation sexual in nature, and discussed traveling from Tennessee to Minnesota to meet and have sex with the child.
According to the defendant’s guilty plea and documents filed in court, between June 12, 2015, and June 22, 2015, EVANS sent dozens of email messages and text messages describing the sexual acts he wanted to engage in with the girl. He also sent sexually explicit photos of himself. In one message, EVANS discussed bringing a digital camera so he could take pictures and video of himself having sex with the 13-year-old female.
According to the defendant’s guilty plea and documents filed in court, on June 22, 2015, EVANS was arrested shortly after he arrived at the Bloomington hotel at which he had planned to engage in illicit sexual relations with the 13-year-old female. Inside EVANS’ hotel room law enforcement found sex toys and lingerie on the bed, as well as a camera and illegal drugs. Inside EVANS’ vehicle, law enforcement found a loaded .38 caliber pistol.
This case was the result of an investigation conducted by Homeland Security Investigations with the assistance of the Bloomington Police Department.
This case was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
Defendant Information:
JEFFREY SCOTT EVANS, 51
Blaine, Tenn.
Convicted:
- Traveling with the intent to engage in illicit sexual conduct, 1 count
Sentenced:
- 96 months in prison
- 15 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600