District of Minnesota
Press releases recorded for this federal judicial district.
Dontre McHenry Sentenced to 293 Months in Prison for Sex Trafficking Teenage Girls Throughout MinnesotaRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 26, to 293 months in prison for recruiting and sex trafficking teenage girls throughout Minnesota. MCHENRY pleaded guilty on October 17, 2014, and was sentenced today before Judge David S. Doty in United States District Court in Minneapolis.
“Human traffickers don’t care whom they victimize, as long as they can profit from it,” said acting Special Agent in Charge William Lowder, of HSI St. Paul. “HSI is dedicated to working with its law enforcement partners in all jurisdictions to identify, pursue, arrest and prosecute the predators involved in human trafficking.”
Assistant U.S. Attorney Laura Provinzino, who is in charge of human trafficking prosecutions, said: “Today, Dontre McHenry was held accountable for recruiting and trafficking the most vulnerable girls in our state—runaways, recent immigrants, and girls in foster care. As our recent anti-trafficking efforts show, protecting our children from violent and manipulative predators is a central mission for the U.S. Attorney’s Office and our law enforcement partners. We will continue to be aggressive in the prosecution of these cases to protect our children from manipulation and violence at the hands of these predators that causes them to be sold for sex.”
According to the defendant’s guilty plea and documents filed in court, from at least January 2013 until March 2014, MCHENRY recruited at least three girls under the age of 18 and prostituted them for his own financial benefit. MCHENRY advertised girls on backpage.com and in chatrooms, and made a sexually-explicit video of a 15-year-old victim. MCHENRY directed the victims about how to talk to men on chat lines, what rates to charge for various sex acts, and how to set up “dates.” The victims were instructed to, and did, give all of the money they were paid for commercial sex acts to the defendant.
According to documents filed in court, on March 13, 2014, Minneapolis police executed a search warrant at a motel room in Roseville, Minnesota, which was previously occupied by MCHENRY and one of the victims. During the search, investigators discovered, among other evidence, handwritten notes and a book entitled “Pimpology: The 48 Laws of the Game.” The handwritten notes included references to trafficking and prostitution, as well as questions that referred to recruiting and coercing minors. Numerous text message conversations from customers arranging to meet with victims to purchase sex were found on the cellphones used by the defendant and the victims.
This case was the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, the St. Paul Police Department, the Rochester Police Department, and the Roseville Police Department.
Assistant U.S. Attorneys Laura M. Provinzino and Melinda A. Williams prosecuted the case.
National Slavery and Human Trafficking Prevention Month
January is National Slavery and Human Trafficking Prevention Month, and the U.S. Attorney’s Office is proud to combine its efforts with federal, tribal, state, and local law enforcement partners to combat trafficking.
As part of that anti-trafficking effort, United States Attorney Andrew M. Luger today announced the guilty plea of PHILLIP DWAYNE LLOYD, a/k/a Marcus Strong, a/k/a Philip Dwayne Loyd, a/k/a Dwayne Smith, a/k/a Alfred Woods, a/k/a “PC,” 44, for recruiting and sex trafficking a 17-year-old girl in January 2015 and for directing and producing a video of the minor engaged in sexually-explicit conduct. LLOYD, who was indicted on May 4, 2015, pleaded guilty yesterday to sex trafficking of a minor and production of child pornography before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
Co-defendant RAQUEL MONE BELCHER, 29, also pleaded guilty yesterday to one count of conspiracy to commit sex trafficking of minors. Both defendants are expected to be sentenced on May 16, 2016 before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
This case is the result of an investigation conducted by the Anoka County Sheriff's Office, Homeland Security Investigations and the Minneapolis Police Department.
United States Attorney Andrew M. Luger today also announced the guilty plea of MYKEL LAMAR HARRIS, 25, for recruiting and sex trafficking a 17-year-old girl in late 2013. HARRIS, who was indicted on October 5, 2015, pleaded guilty yesterday to sex trafficking of a minor before Judge Donovan W. Frank in U.S. District Court in St. Paul.
This case is the result of an investigation conducted by Homeland Security Investigations and the St. Paul Police Department.
Assistant U.S. Attorney Laura M. Provinzino is prosecuting the cases.
Defendant Information:
DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 26
St. Paul, Minn.
Convicted:
-
Sex Trafficking of a Minor, 1 count
Sentenced:
-
293 months in prison
-
Lifetime supervised release
PHILLIP DWAYNE LLOYD, a/k/a Marcus Strong, a/k/a Philip Dwayne Loyd, a/k/a Dwayne Smith, a/k/a Alfred Woods, a/k/a “PC,” 44
Minneapolis, Minn.
Convicted:
-
Sex Trafficking of a Minor, 1 count
-
Production of Child Pornography, 1 count
RAQUEL MONE BELCHER, 29
Minneapolis, Minn.
Convicted:
-
Conspiracy to Commit Sex Trafficking of a Minor, 1 count
MYKEL LAMAR HARRIS, 25
St. Paul, Minn.
Convicted:
-
Sex Trafficking of a Minor, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Brooklyn Park Landlord and Property Management Company Agree to Pay Victim for Violating the Fair Housing ActRead the Press Release
United States Attorney Andrew M. Luger today announced that the federal government and a housing discrimination victim have entered into an agreement with a Brooklyn Park landlord and a property management company to settle allegations that they violated the federal Fair Housing Act (“FHA”) by refusing to allow the victim to keep her support animal at Huntington Place Apartments because the support animal was a pit bull. The alleged violations included: requiring the victim to purchase liability insurance for her support animal; requiring the victim to make her support animal wear a vest identifying it as a support animal; demanding excessive medical information; and refusing to renew the victim’s lease based on the breed of her support animal.
Under the terms of the agreement, filed in the form of a consent decree on Friday, January 22, 2016, the defendants, Brooklyn Park 73rd Leased Housing Associates, LLC; Dominium Management Services, LLC; Susan Meyer; and Gina Estrem will pay $35,000 to the housing discrimination victim. The defendants, who are the landlord, management firm, and two employees, were sued by the U.S. Attorney’s Office on May 18, 2015.
Pursuant to the consent decree, the defendants will be enjoined from: refusing to rent or discriminating in the terms, conditions and privileges of a dwelling of because of a person’s disability; refusing to make reasonable accommodations that may be necessary to afford a person with a disability an equal opportunity to use and enjoy a dwelling; and coercing, intimidating or interfering with a person’s use and enjoyment of a dwelling on account of having exercised a right granted by the FHA. In addition, they will adopt a reasonable accommodation policy for Huntington Place Apartments, which specifies that assistance animals are not considered “pets” under Huntington Place Apartment’s policies, and will display fair housing materials and include the words “Equal Housing Opportunity Provider” in advertising materials. Defendants and certain employees and agents will also attend an educational training program regarding the FHA and its disability discrimination provisions.
In its complaint, the federal government alleged that the defendants learned in February 2013 that a tenant had a pit bull in her apartment at Huntington Place Apartments, which included pit bulls in a prohibited breed policy. The victim requested the reasonable accommodation of being allowed to keep her dog, named “King,” as a “support animal” pursuant to the FHA. The defendants required additional medical information and maintained that the victim should get rid of King and replace him with a dog of a different breed. After receiving two letters from a psychologist and one from a social worker that verified the victim’s need to retain King, the defendants threatened eviction. The defendants’ attorney ultimately interviewed the victim’s psychologist in a phone call in which the psychologist reiterated the importance of King and the victim’s relationship with that specific dog to her well-being and recovery.
The defendants subsequently allowed the victim to keep King, but required her to purchase insurance for King, make him wear a vest identifying him as an emotional support animal, keep King leashed at all times and execute an indemnity agreement. The victim complied with the defendants’ requirements, but the defendants still demanded that she leave at the end of her initial lease term only because of the breed of her support animal.
The victim filed a discrimination complaint with the U.S. Department of Housing and Urban Development (“HUD”), alleging housing discrimination based on disability. HUD investigated the complaint and, on April 14, 2015, issued a charge of discrimination against the defendants, alleging they had engaged in discriminatory housing practices based on disability in violation of the FHA. This case arose from that charge.
“The Fair Housing Act requires landlords to make reasonable accommodations for people with disabilities, including allowing support animals that would be prohibited if they were simply pets. When tenants exercise the right to keep support animals, the FHA prohibits landlords from retaliating or discriminating against them,” said Assistant U.S. Attorney Craig Baune, who represented the United States in the matter.
The FHA prohibits discrimination in housing of the basis of race, color, religion, sex, familial status, national origin and disability. Civil Rights enforcement is a priority of the U.S. Department of Justice (“DOJ”), and individuals who believe they have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743), email DOJ at [email protected], or contact HUD at 1-800-669-9777.
The underlying case is United States of America, et al v. Brooklyn Park 73rd Leased Housing Associates, LLC, et al, Civil No. 15-2489 (PJS/SER). Assistant U.S. Attorney Craig Baune represented the United States in this court action. The victim intervened and was represented by Mawerdi Hamid and Lael Robertson of Mid-Minnesota Legal Aid. The claims settled by this agreement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Twin Cities Man Sentenced to 57 Months in Prison for Conspiracy, Fraud, and Illegally Buying and Selling Tobacco ProductsRead the Press Release
United States Attorney Andrew M. Luger and the Minnesota Department of Revenue-Criminal Investigation Division today announced the sentencing of RASHID FEHMI IBRAHIM, 40, for conspiracy, mail fraud and the illegal purchase and transport of tobacco products. The defendant pleaded guilty on June 8, 2015, before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn., to one count of Conspiracy to Commit Mail Fraud and Wire Fraud, five counts of Mail Fraud, one count of Conspiracy to Ship, Transport, Receive, Possess, Sell, Distribute and Purchase Contraband Smokeless Tobacco, and six counts of Shipment, Transport, Receipt, Possession, Sale, Distribution and Purchase of Contraband Smokeless Tobacco.
According to his guilty plea and documents filed in court, between 2007 and 2011, IBRAHIM purchased approximately $4,300,000 of untaxed Other Tobacco Products (“OTP”) from out-of-state tobacco wholesalers such as ISA Chicago Wholesale, Inc. (“ISA”) and shipped them to Minnesota. The defendant purchased the OTP free of any state taxes and intended to resell it without paying any state taxes in Illinois, Minnesota or elsewhere. IBRAHIM knew he was not a licensed distributor, manufacturer or carrier and, therefore, was unauthorized to purchase, sell, distribute, possess or receive smokeless tobacco products.
According to his guilty plea and documents filed in court, IBRAHIM used various aliases and addresses to conceal his OTP purchases and used private interstate contract carriers to ship the products from the wholesaler to Minnesota where IBRAHIM stored them in rented storage units. After receiving the shipment of OTP, IBRAHIM would illegally resell the products to retail establishments and other OTP traffickers in Minnesota. IBRAHIM purposely evaded the payment of state taxes and is ordered to pay a total of $3,048,109.39 in restitution to the state of Minnesota.
This case is the result of a joint investigation conducted by the Minnesota Department of Revenue-Criminal Investigation Division and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney Benjamin Langner.
Defendant Information:
RASHID FEHMI IBRAHIM, 40
San Juan, Puerto Rico.
Convicted:
- Conspiracy to Commit Mail Fraud and Wire Fraud, 1 count
- Mail Fraud, 5 counts
- Conspiracy to Ship, Transport, Receive, Possess, Sell, Distribute and Purchase Contraband Smokeless Tobacco, 1 count
- Shipment, Transport, Receipt, Possession, Sale, Distribution and Purchase of Contraband Smokeless Tobacco, 6 counts
Sentenced:
- 57 months in prison
- 3 years supervised release
- $3,048,109.39 in Restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Member of Minneapolis-Based Gang Sentenced to 10 Years in Prison for Conspiracy to Distribute Crack CocaineRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 27, with conspiring to distribute crack cocaine in the Twin Cities and Greater Minnesota. HARRISON pleaded guilty on April 30, 2015. He was sentenced on January 21, 2016 before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
Assistant U.S. Attorney David Steinkamp said: “The defendant and other members of his violent street gang sold significant quantities of crack cocaine to the citizens of St. Cloud and Minneapolis. A sentence of 10 years provides deterrence to others who may try to profit from the misery that drug addiction brings, and will also protect the public from an individual with a history of violent crime.”
According to his guilty plea and documents filed in court, between January and December 2014, HARRISON was closely associated with the Minneapolis-based Taliban/Young N Thuggin (YNT) street gangs. Taliban/YNT gang members use hand gestures, social media, and specific language to communicate amongst each other and to convey membership. They claim an area of north Minneapolis as their territory, and other north Minneapolis gangs, including the 19-Dipset and Stick Up Boys, as enemies.
According to his guilty plea and documents filed in court, HARRISON and his co-conspirators made money by trafficking in illegal drugs, among other criminal activity. Members of the Taliban/YNT frequently traveled to St. Cloud and Duluth, Minnesota, and to Fargo, North Dakota, to sell crack. Crack that the Taliban/YNT could sell in Minneapolis for $20 could be sold for $50 in Greater Minnesota and in North Dakota. Similarly, an amount of crack cocaine sold for $150 in the Metro area would sell for between $220 and $250 in Greater Minnesota.
According to his guilty plea and documents filed in court, HARRISON and his co-conspirators would carry guns to protect themselves and their money while trafficking crack cocaine. They also use guns to both protect against attacks by rival gangs and to retaliate violently to threats or assaults by their rivals. Their use of weapons is intended to gain street supremacy and further the gang’s ability to sell illegal drugs.
This case was the result of an investigation conducted by the Safe Streets Task Force, which is comprised of federal and local law enforcement agencies, including, but not limited to, the FBI, Minneapolis Police Department, Minnesota Bureau of Criminal Apprehension and St. Paul Police Department. The St. Cloud Violent Crimes Task Force and the St. Cloud Police Department were a critical part of this investigation.
This case was prosecuted by Assistant U.S. Attorney David Steinkamp.
Defendant Information:
CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 27
Unknown
Convicted:
- Conspiracy to Distribute Crack Cocaine, 1 count
Sentenced:
-
10 years in prison
-
Five years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Defendant Sentenced to 30 Years for Kidnapping and Violently Assaulting Three Victims on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of DARRELL ALAN LUSSIER, 36, to 360 months in federal prison for kidnapping and violently assaulting three victims on the Red Lake Indian Reservation. On September 3, 2015, following a four-day trial, a federal jury found LUSSIER guilty of all counts. The defendant was sentenced on January 20, 2016 before Judge Richard H. Kyle in U.S. District Court in Duluth, Minn.
As proven at trial, on February 9, 2015, LUSSIER used his fists and feet to assault victim G.L.M. after the two individuals got into a verbal argument with each other at G.L.M.’s home. The defendant continued to brutally beat the victim before wrapping a shoelace around the victim’s neck in an attempt to strangle him. LUSSIER then threw the victim into a crawlspace beneath the home. After assaulting G.L.M., LUSSIER brutally assaulted two other victims, D.M.R., who is legally blind, and D.M.R.’s sister, N.L.R., and then threw them into the crawlspace before leaving the house. The three victims were found the next day and taken to the Red Lake Hospital and subsequently transferred to Sanford Hospital in Fargo, all suffering from traumatic brain injuries and various broken bones and other injuries.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
These cases resulted from an investigation conducted by the Federal Bureau of Investigation and the Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
DARRELL ALAN LUSSIER, 36
Red Lake, Minn.
Convicted:
-
Kidnapping, 3 counts
- Assault Resulting in Serious Bodily Injury, 3 counts
Sentenced:
-
360 months in prison
-
Five years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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St. Cloud State University Professor Pleads Guilty to Trafficking in Elephant Ivory and Rhinoceros HornRead the Press Release
Andrew M. Luger, United States Attorney for the District of Minnesota and Ed Grace, Deputy Assistant Director for the U.S. Fish and Wildlife Service, announced that today in federal court a St. Cloud State University Professor pleaded guilty to smuggling elephant ivory and to illegally exporting rhinoceros horns from the United States in violation of the Lacey Act. 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.
YIWEI ZHENG, A/K/A STEVE ZHENG, 43, of St. Cloud, Minnesota, pleaded guilty today in U.S. District Court in Minneapolis to knowingly and fraudulently smuggling elephant ivory out of the United States on April 30, 2011, to a recipient in Shanghai, China, contrary to U.S. smuggling statutes. ZHENG also pleaded guilty to violating the Lacey Act by knowingly 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.
In addition to his employment as a Professor of Philosophy at St. Cloud State University, 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.
As alleged in court filings and admitted to during the plea hearing today, on May 5, 2011, U.S. Customs and Border Protection officers at the International Mail Facility in Chicago, Illinois identified a parcel being exported from the United States and destined for an individual in Shanghai, China. The shipper was identified as YIWEI ZHENG, a Professor at St. Cloud State University in St. Cloud, Minnesota. A U.S. Fish and Wildlife Service wildlife inspector determined the package contained a number of elephant ivory carvings. The accompanying Customs Declaration and Dispatch Note completed by the shipper described the contents as “Chinese artifact: Desk Decorative item” with a declared value of $35.00. Additionally, 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.
U.S. Fish and Wildlife Service agents determined through investigation that ZHENG purchased the elephant ivory items found in the intercepted shipment through the online auction site eBay and that the value of those items was actually $6,961.41 rather than the $35.00 ZHENG declared on the exported shipment. During the course of the investigation, agents also documented that ZHENG purchased two rhinoceros horns from an individual in Florida for more than $20,000 and subsequently smuggled the two rhinoceros horns out of the United States to China where they were ultimately sold at auction for approximately $68,000. At the time, ZHENG knew that all rhinoceros species were protected under CITES and were listed as endangered or threatened species under the Endangered Species Act (ESA). ZHENG further knew that the ESA made it unlawful to import or export any endangered wildlife species.
In total, agents documented that ZHENG smuggled into and out of the United States and sold in China and elsewhere, elephant ivory, rhinoceros horn and products with a fair market value in excess of $1,000,000. Pursuant to the plea agreement presented in U.S. District Court earlier today, ZHENG agreed that the fair market value of the illegal wildlife documented in his case was between $550,000 and $1,500,000.
Assistant U.S. Attorney Laura Provinzino stated “the U.S. Attorney’s Office is committed to protecting the environment and natural resources by prosecuting those individuals who violate our federal laws. Cases like this are important to curb the market for rhinoceros horn and elephant ivory to help ensure the survival of those species across the globe.”
“This is another significant case which documents the extent of global wildlife trafficking and the pressure it places on the world’s most rare and endangered animals,” said U.S. Fish and Wildlife Service Deputy Assistant Director for Law Enforcement Ed Grace. “These types of investigations remain the top priority for us as we carry out the President’s National Strategy for Combating Wildlife Trafficking,” continued Grace.
ZHENG faces a maximum sentence of up to 10 years imprisonment and a criminal fine of up to $500,000. The defendant will be sentenced on May 9, 2016 in Minneapolis before Chief Judge John R. Tunheim of the U.S. District Court for the District of Minnesota.
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 Laura M. Provinzino.
The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect and enhance fish, wildlife, plants and their habitats for the continuing benefit of the American people.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States to Accept Concurrent Jurisdiction over Mille Lacs Band of Ojibwe Reservation in MinnesotaRead the Press Release
WASHINGTON – The Department of Justice has granted a request by the Mille Lacs Band of Ojibwe for the United States to assume concurrent criminal jurisdiction on the tribe’s reservation in central Minnesota, Deputy Attorney General Sally Quillian Yates announced today.
The decision was the second assumption of jurisdiction granted by the Department of Justice under the landmark Tribal Law and Order Act of 2010 (TLOA), which gave the department discretion to accept concurrent federal jurisdiction to prosecute violations of the General Crimes Act and the Major Crimes Act within areas of Indian country that are also subject to state criminal jurisdiction under Public Law 280. Public Law 280 is the 1953 law that mandated the transfer of federal law enforcement jurisdiction for certain tribes to six states, including Minnesota. The first assumption of federal jurisdiction took place on Minnesota’s White Earth Reservation in March 2013.
The decision will take effect on Jan. 1, 2017. Tribal, state and county prosecutors and law enforcement agencies will also continue to have criminal jurisdiction on the reservation.
“We believe this decision – made after a careful review of the tribe’s application and the facts on the ground – will strengthen public safety and the criminal justice system serving the Mille Lacs Band of Ojibwe,” said Deputy Attorney General Yates. “This is another step forward in the Justice Department’s commitment to serve and protect American Indian and Alaska Native communities, to deal with them on a government-to-government basis and to fulfill the historic promise of the Tribal Law and Order Act. Strong law enforcement partnerships with the Tribe, as well as state and local counterparts, will be essential to the success of this effort.”
“We want to make certain that the outcome of this decision will benefit the residents of the Mille Lacs Band and improve the safety of the community,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “As we work towards full implementation, we will work to strengthen the bonds between our tribal and local partners in pursuit of our common goal of providing a safe environment where this community can thrive.”
The Department of Justice already has jurisdiction to prosecute certain crimes, such as drug trafficking, wherever they occur in the United States – including on the Mille Lacs Reservation. The change announced today will expand this existing jurisdiction to allow federal prosecution of major crimes such as murder, rape, felony assault and felony child abuse.
The decision followed careful consideration of the request and information provided by the Mille Lacs Band Tribal government, as well as by the Justice Department’s Office of Tribal Justice, the Executive Office for U.S. Attorneys, the U.S. Attorney's Office for the District of Minnesota, the Federal Bureau of Investigation, the U.S. District Court, state and local law enforcement partners and other sources.
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Co-Owners of A Farm in Sleepy Eye Plead Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of FRANCIS SELLNER, 66, and EUGENE SELLNER, 63, for income tax evasion. EUGENE SELLNER was charged on December 9, 2015, and FRANCIS SELLNER was charged on December 10, 2015, by felony information, each with one count of tax evasion. Both defendants pleaded guilty yesterday before U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn. A sentencing date has not yet been determined.
According to the defendants’ guilty pleas and documents filed in court, FRANCIS and EUGENE SELLNER are brothers and co-owners of a farm in Sleepy Eye, Minnesota. From approximately 2011 through 2013, the Sellner Farm regularly sold corn and soybeans to a feed and grain company located in Morgan, Minnesota. During this time, the feed and grain company paid for the goods with checks written out to both defendants. Rather than depositing the checks, the defendants cashed the majority of the checks to avoid paying taxes on the income.
According to the defendants’ guilty pleas and documents filed in court, FRANCIS and EUGENE SELLNER filed false income tax returns for the tax years 2011, 2012 and 2013, failing to report income received from the feed and grain company. In total, the defendants failed to report more than $500,000 in income.
FRANCIS SELLNER and EUGENE SELLNER each face up to five years in prison.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
Defendant Information:
FRANCIS SELLNER, 66
Sleepy Eye, Minn.
Convicted:
- Tax Evasion, 1 count
EUGENE SELLNER, 63
Sleepy Eye, Minn.
Convicted:
-
Tax Evasion, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Investment Advisor Indicted for Stealing More Than $2.5 Million from Advisory Clients in Minnesota and WisconsinRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of LEVI DAVID LINDEMANN, 39, for stealing more than $2.5 million from investment advisory clients. LINDEMANN is charged with mail fraud and money laundering. He is expected to make an initial appearance before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minn.
“People entrusted their savings to Mr. Lindemann based on his promise to invest their money and help them save for retirement,” said Assistant United States Attorney Joseph H. Thompson. “But, as charged, Mr. Lindemann abused that trust in order to steal his clients’ money and enrich himself at their expense. After receiving a tip from one of Mr. Lindemann’s victims, agents from the IRS, FBI, and Minnesota Department of Commerce worked together to ensure that he will be held to account for his actions.”
“As the charges allege, Levi Lindemann abused his position of trust as a financial adviser to steal from his clients, including elderly individuals,” said Minnesota Commerce Commissioner Mike Rothman. “Lindemann promised clients he would put their money in legitimate and safe investments. Instead, he used the funds to pay for personal expenses while also making Ponzi-type payments to other clients to cover up and continue his fraud.”
“IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud their clients,” stated IRS CI Special Agent in Charge Shea Jones. “Today's indictment of Levi Lindemann should serve as a strong warning to those who are considering similar fraudulent conduct.”
According to the indictment and documents filed in court, 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 indictment and documents filed in court, LINDEMANN used AWS to solicit approximately $4.3 million in 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, purchasing at least one vehicle and to make Ponzi-type payments of promised returns to other investors.
According to the indictment and documents filed in court, 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. LINDEMANN also used some of the investment funds that he stole to make monthly payments to investor-clients, which were intended to appear to be monthly interest payments accruing from legitimate investments.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau, Criminal Investigation Division of the IRS and Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
Defendant Information:
LEVI DAVID LINDEMANN, 39
Stillwater, Minn.
Charges:
-
Mail fraud, 1 count
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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 accusations, and the defendant is presumed innocent unless and until proven guilty.
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Houston, Texas-Area Teenager Sentenced to 3 ½ Years in Prison for “Swatting” and Making Bomb Threats to Minnesota High SchoolRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ZACHARY LEE MORGENSTERN, 19, to 41 months in prison, followed by 3 years supervised release, for calling in multiple false bomb threats, making harassing text messages, and making “swatting” phone calls, in which he falsely reported hostage situations. MORGENSTERN was arrested in Texas on May 14, 2015, and was transported to Minnesota. MORGENTERN pleaded guilty on August 7, 2015. He was sentenced today before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
“The defendant engaged in a pattern of harassing activity against several victims using the cloak of anonymity afforded by the Internet,” said Assistant United States Attorney Timothy C. Rank. “He wrought emotional havoc and caused the needless expenditure of public funds to respond to his destructive emails, tweets, and phone calls. Mr. Morgenstern committed his crimes in part because he thought he would not get caught. Because of the excellent investigative work of the FBI, he was wrong, and the sentence today sends a strong message that there are serious consequences for this type of behavior.”
“This sentencing reinforces the FBI's willingness and ability to bring to justice those who would make bomb threats against our schools and misuse law enforcement resources,” said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “There is no tolerance for such crimes.”
“It's good to have closure in this matter so we can move on from the disruption in our city and school district caused by Mr. Morgenstern's actions,” said Marshall Police Chief Rob Yant.
According to the defendant’s guilty plea and documents filed in court, between October 2014 and May 2015, MORGENSTERN, made a series of threatening communications against a number of different victims in the Marshall, Minnesota area. MORGENSTERN, concealing his identity using anonymized email addresses, Twitter handles, and Internet-based phone accounts, made threats to kill a police officer and her family; threats to use explosives to blow up a school; and threats to use guns to shoot up a school. MORGENSTERN also engaged in a series of “swatting” attacks, in which he made hoax phone calls to law enforcement making it appear that there was a violent crime in progress at a residence, when in fact no such crime was taking place. The defendant engaged in these “swatting” calls with the intent that they would result in an emergency police response to the residence, ideally involving a Special Weapons and Tactics (SWAT) team.
According to the defendant’s guilty plea and documents filed in court, one such attack came on October 7, 2014, when MORGENSTERN called the Marshall Police dispatch center and claimed to have taken two people hostage at a residence of H.M., a minor, in Marshall. MORGENSTERN further claimed that he had shot one of the hostages in the knee cap and that he was going to kill both hostages unless he received a duffel bag containing a half a million dollars. The Marshall Police Department determined that call was a hoax.
According to the defendant’s guilty plea and documents filed in court, on January 6, 2015, MORGENSTERN called in a bomb threat into the Marshall, Minnesota Police Department dispatch center. In the call, MORGENSTERN claimed to be D.R., a 17-year-old male from Marshall, Minnesota, and he stated that he had placed bombs around Marshall High School that were set to detonate in approximately one hour. School officials evacuated the school and responding officers searched the school and determined the threat was a hoax. Two days later, on January 8, 2015, MORGENSTERN, concealing his identity, placed a call to Marshall Police dispatch claimed he had taken a father and son hostage at gunpoint at their residence in Marshall. MORGENSTERN claimed he had already shot the father in the leg and would soon shoot both hostages in the head. The address provided by the caller for the hostage situation was the residence of a D.R. Police responded to the call and learned that it had been a hoax. Shortly after the call to Marshall Police, MORGENSTERN tweeted that he was in the process of “swatting” D.R.
According to the defendant’s guilty plea and documents filed in court, on January 9, 2015, MORGENSTERN called the Marshall Police dispatch and, claiming to be D.R., threatened to “shoot up” Marshall High School in 30 minutes and kill everybody. MORGENSTERN then tweeted from the account, @RIURichHomie that D.R. was going to shoot up a school in 10 minutes. On January 11, 2015, MORGENSTERN sent an email message to the Superintendent of Marshall, Minnesota Public Schools which had purportedly been sent by D.R. In the message, MORGENSTERN claimed he was D.R. and that he had planted a bomb at a Marshall school that would detonate at 10:00 am the following day. MORGENSTERN also claimed he would arrive at a different Marshall school at the same time and shoot students and faculty members.
According to the defendant’s guilty plea and documents filed in court, on January 29, 2015, an email message was received by a Marshall Public Schools employee that purportedly had been sent by D.R., but in fact sent by MORGENSTERN. The sender claimed he had placed a bomb in the building and all survivors would be killed by a team who would be coming to the school.
According to the defendant’s guilty plea and documents filed in court, on February 16, 2015, the Marshall Police dispatch received a phone call from a person identifying himself as a 13-year-old boy named I.W., who claimed that two black men had just broken into his apartment and shot his mother in the leg. The call came from MORGENSTERN. He told the dispatcher that he was frightened and hiding in a bedroom closet, that the men were in the living room with his mother and 3-year-old sister, and that he could hear the men yelling at his mother. Police responded to the call and determined it was a hoax.
Finally, according to the defendant’s guilty plea and documents filed in court, on April 20, 2015, MORGENSTERN, concealing his identity, left a voicemail message for a Marshall Police Officer who worked as a school resource officer at Marshall High School in which MORGENSTERN threatened to kill the officer’s family.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Marshall Police Department.
This case was prosecuted by the United States Attorney’s Office for the District of Minnesota.
Defendant Information:
ZACHARY LEE MORGENSTERN, 19
Cypress, Tex.
Convicted:
-
Threats to kill, 1 count
Sentenced:
-
41 months in prison
-
3 years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Colin Chisholm Indicted for Fraudulent Scheme to Steal More Than $2 Million from Investors in Television Network StartupRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of COLIN ALEXANDER CHISHOLM, 64, for stealing more than $2 million from investors by lying to them about an investment in a purported television network startup. CHISHOLM was indicted on seven counts of wire fraud and six counts of mail fraud. The defendant is expected to make an initial appearance today before Magistrate Judge Becky Thorson in U.S. District Court in St. Paul, Minn.
“According to the indictment, Mr. Chisholm claimed to have devised a creative and exciting investment opportunity,” said Assistant U.S. Attorney Lola Velazquez-Aguilu. “However, it was built on a series of lies. Instead of providing a real possibility for a return on their investment, this defendant is charged with victimizing those who entrusted their money to him. Thanks to the hard work of investigators from the Minnesota Department of Commerce and United States Postal Inspection Service, this defendant will now have to answer for his alleged crimes.”
“As the indictment alleges, Colin Chisholm told one lie after another to steal from investors who thought they were financing a promising new business enterprise,” said Minnesota Commerce Commissioner Mike Rothman. “In reality, Chisholm was using their money for his own personal enrichment and luxurious lifestyle. This case shows the Commerce Fraud Bureau’s continuing partnership with federal authorities to bring white-collar criminals to justice.”
Craig I. Goldberg, Postal Inspector in Charge of the Denver Division, which also covers the Twin Cities, said, “When the U.S. mail is alleged to have been used for the purposes of committing fraud, it’s the job of the Postal Inspection Service to aggressively investigate and ensure America’s continued confidence in the integrity of its postal system.”
“This case is yet another example of successful cooperation between federal and local law enforcement and prosecutors,” said U.S. Attorney Luger. “I am especially grateful to my colleagues and friends in the Hennepin County Attorney’s Office who referred this case for federal prosecution.”
According to the indictment and documents filed in court, since 2004, CHISHOM used The Caribbean Television Network, Inc., (TCN) an entity he formed purportedly to broadcast satellite television throughout the Caribbean, to solicit funds from investors. As part of the solicitation, CHISHOLM told potential investors that TCN would serve as a network for a group of cable television channels, thereby allowing advertisers to obtain advertising time on multiple channels via a single network advertising buy. Throughout the scheme, CHISHOLM told investors that TCN was on the verge of securing between $20 million and $100 million in funding to begin broadcasting, and that their investment would be used as interim financing for TCN.
According to the indictment and documents filed in court, as part of his scheme to obtain money from potential investors, CHISHOLM lied to them about the progress and viability of the main funding sources for TCN. CHISHOLM lied to some investors by telling them that they were buying shares of TCN stock owned by CHISHOLM’S alleged family trust – the Comar Trust and told some investors that their investments were guaranteed by the Comar Trust. In fact, the Comar Trust did not have funds to guarantee the investments.
According to the indictment and documents filed in court, CHISHOLM also lied to investors about his personal background. He told some investors that he was the grandson of Hugh J. Chisholm, Jr., and the son of William Chisholm, of the Oxford Paper Company. In falsely claiming this family lineage, CHISHOLM gave the false impression that he came from considerable family wealth. CHISHOLM also claimed to be a Scottish Chieftain of the Clam Chisholm and claimed to have close personal ties to members of the Bush family, specifically to Prescott S. Bush, Hr., the deceased brother of former President George H.W. Bush. CHISHOLM further claimed to provide scholarships to Bowdoin College, where Hugh J. Chisholm, Jr., received an honorary degree.
According to the indictment and documents filed in court, CHISHOLM also lied about his professional background, most notably making the claim to potential investors that he had worked as Vice President for Turner Program Services, to have a relationship with Ted Turner, and to have participated in the development and launch of CNN and CNN Headline News, including writing the business plan for CNN.
According to the indictment and documents filed in court, CHISHOLM also failed to disclose his own misuse of investor funds, including funds he used to satisfy a $255,500.50 settlement with Verizon and for personal expenses, such as the purchase of a yacht, personal fitness and wellness expenses, and rent for his home on Lake Minnetonka.
CHISOLM is charged with causing the loss of more than $2 million to individual investors.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau and the United States Postal Inspection Service.
The U.S. Attorney’s Office thanked the Hennepin County Attorney’s Office for its substantial assistance in this case.
This case is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.
Defendant Information:COLIN ALEXANDER CHISHOLM, 64
Minneapolis, Minn.Charges:
- Wire fraud, 7 counts
- Mail fraud, 6 counts
Wisconsin Man Sentenced to 51 Months in Prison for Traveling Overseas to Engage in Illicit Sexual ConductRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of STEVEN RICHARD SMASAL, 48, to 51 months in prison for traveling abroad to engage in illicit sexual conduct. SMASAL pleaded on guilty on July 24, 2015, before U.S. District Judge John R. Tunheim. He was sentenced today in U.S. District Court in Minneapolis, Minn., before now Senior U.S. District Judge Tunheim.
“This sentence serves as a warning to all those who would consider traveling overseas to sexually exploit children, ” said acting Special Agent in Charge William Lowder of HSI St. Paul. “Sex tourism is a crime in the United States. HSI and our law enforcement partners here and around the world will aggressively pursue those who attempt to harm children, no matter where that may be.”
According to the defendant’s guilty plea, on February 24, 2015, SMASAL, who had spent significant time teaching in the Philippines, was scheduled to travel from the Twin Cities to Beijing via Toronto. The purpose of his trip was to teach English in Beijing and to engage in illicit sexual conduct with minor girls in the Phillippines.
According to the defendant’s guilty plea, SMASAL communicated with at least two females, one of whom was the mother of a 14-year-old girl. SMASAL indicated to the woman that he would like to meet her and her 14-year-old daughter in the Phillippines, at one point stating, “…understand that I will want you and ur daughter.” SMASAL later stated, “Is it ok that I have sex with ur daughter?” Finally, he asked, “Can I just have ur daughter then?”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
Defendant Information:
STEVEN RICHARD SMASAL, 48
Eau Claire, Wisc.Convicted:
- Travel with intent to engage in illicit sexual conduct, 1 count
Sentenced:
- 51 months in prison
- 15 years of supervised release
Danny Heinrich Indicted for Possession and Receipt of Child PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging DANNY JAMES HEINRICH, 52, with 25 counts of felony child pornography offenses, including 17 counts of possession and eight counts of receipt of child pornography. HEINRICH was originally charged by criminal complaint on October 29, 2015.
According to the indictment, a search warrant was executed on July 28, 2015, at the Annandale, Minn., home of the defendant. During the execution of the search warrant, officers recovered numerous images of suspected child pornography from the residence. Those images were organized into separate collections of child pornography within multiple three-ring binders located throughout the residence.
According to the indictment, additional images of child pornography were recovered from the hard-drive of a desktop computer located in the basement of the defendant’s residence.
If you have information about this case, please contact the Stearns County Sheriff’s Office at 1-320-656-6625 or the National Center for Missing and Exploited Children at 1-800-THE-LOST.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant United States Attorneys Julie E. Allyn and Steven L. Schleicher of the U.S. Attorney’s Office’s Special Prosecutions Unit.
Defendant Information:DANNY JAMES HEINRICH, 52
Annandale, Minn.Charges:
- Possession of child pornography – printed material, 10 counts
- Possession of child pornography – victim under 12 – printed material, 5 counts
- Possession of child pornography – morphed image – printed material, 1 count
- Possession of child pornography – digital image, 1 count
- Receipt of child pornography – digital material, 7 counts
- Receipt of child pornography – printed material, 1 count
Corey Bevins Sentenced to 25 Years in Prison for Making Pornographic Videos of Nine-Year-Old ChildRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of COREY VICTOR BEVINS, 39, to 25 years in prison for making pornographic images and videos of a nine-year-old child. BEVINS was originally charged by indictment on April 22, 2014, and pleaded guilty on June 30, 2015, to production, receipt and possession of child pornography. He was sentenced this morning in U.S. District Court in Duluth, Minn., before U.S. District Judge Richard H. Kyle.
“Bevins downloaded child pornography to help him groom a nine-year-old victim so that he could exploit that child,” said Assistant U.S. Attorney Deidre Aanstad. “He then produced child pornography of that same victim who he repeatedly sexually abused. The sentence imposed by the court is both fair and just.”
According to the defendant’s guilty plea, on July 17, 2012, BEVINS persuaded a nine-year-old child to engage in sexually explicit conduct so that he could make visual depictions, including videos, of such conduct. The videos show the defendant removing the child’s clothes and sexually assaulting the child. BEVINS also attempted to make child pornography involving the same child victim at least two other times during the summer of 2012.
According to the defendant’s guilty plea, on November 22, 2012, BEVINS used his computer to receive child pornography via a peer-to-peer file sharing program. The pornography depicted a pre-pubescent child engaged in sexually explicit conduct.
According to the defendant’s guilty plea, on January 7, 2014, within the confines of the White Earth Indian Reservation, BEVINS possessed at least five videos of child pornography depicting children engaged in various acts of sexually explicit conduct.
In total, BEVINS downloaded and possessed at least 60 digital media images and 269 videos of the sexual exploitation of children, including images and videos of prepubescent minors under the age of 12.
This was the result of an investigation conducted by the Federal Bureau of Investigation and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Deidre Y. Aanstad prosecuted this case.
Defendant Information:
COREY VICTOR BEVINS, 39
White Earth, Minn.Convicted:
- Production of child pornography, 1 count
- Receipt of child pornography, 1 count
- Possession of child pornography, 1 count
Sentenced:
- 25 years in prison
- 15 years supervised release
Bloomington Man Convicted of Trafficking 12 and 16-year-old Girls for Commercial SexRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced the trial conviction of LEE ANDREW PAUL, a/k/a “Black,” 35, who was originally indicted on February 17, 2015, in the District of Minnesota, for sex trafficking two minor girls. A superseding indictment subsequently charged PAUL with three counts of sex trafficking. The jury returned a guilty verdict in less than two hours after a five-day trial before U.S. District Judge Ann D. Montgomery. A sentencing date has not yet been set.
“Lee Paul is a predator,” said Assistant United States Attorney Melinda A. Williams. “He hunted down vulnerable girls, including a sixth grader, to traffic for commercial sex. He controlled these women and girls through physical, sexual, and psychological abuse. The stories of these girls are difficult to hear and were even more difficult for these victims to recount. We thank the victims who courageously testified at trial and the jury who rendered this just verdict.”
“While no jail sentence is long enough to erase the damage he has done to his victims, today’s verdict will ensure Lee Paul will have years to reflect on the pain and suffering he has caused,” said William Lowder, acting special agent in charge of HSI St. Paul. “Our communities are safer today, as a result of the excellent cooperative efforts in this case of the Anoka County Sheriff’s Office, the Rochester Police Department, the U.S. Marshals Service and Homeland Security Investigations.”
As proven at trial, LEE PAUL is a self-proclaimed “pimp.” During Memorial Day weekend of 2013, PAUL sought out a 12-year-old sixth grader to join his sex trafficking “family.” He lured a 12-year-old and 16-year-old girl to a party at a motel in Rochester, Minn., where he gave them marijuana and alcohol. After the victims became inebriated, PAUL told them he was a pimp and that they would be working for him. PAUL then took the girls to the Twin Cities where they know no one. PAUL sexually assaulted the 16-year-old victim and brutally raped the 12-year-old.
As proven at trial, while at a motel in Maple Grove, Minn., that same weekend, the 16-year-old victim escaped PAUL and found a police officer and reported what had happened to her. However, PAUL had been tipped off that the 16-year-old victim was trying to find the police and PAUL fled the scene. He then directed another victim, this one 19-years-old, to take the 12-year-old victim to Alexandria, Minn., to “show her the ropes.” The 12-year-old was sold two times that that night for sex with men. Law enforcement arrested PAUL on the morning of May 27, 2013, and was in jail pending state charges in Olmsted and Anoka Counties until he made bail on August 26, 2013. PAUL fled in July 2014 on the eve of his Olmsted County trial.
As proven at trial, while on the run, PAUL got rid of his cell phone and shut down his Facebook page to avoid being tracked by law enforcement. He fled first to Chicago, Ill., and then Atlanta, Ga., where he lived under two different assumed identities and used “burner” phones to avoid being tracked by law enforcement. He was arrested on January 14, 2015 by the U.S. Marshals Service and brought back to Minnesota to face federal charges.
This case is the result of an investigation conducted by Homeland Security Investigations, the United States Marshal Service, Rochester Police Department, Alexandria Police Department, Douglas County Sheriff’s Office, Anoka County Sheriff’s Office, Pope County Sheriff’s Office and the Maple Grove Police Department.
This case is being prosecuted by Assistant U.S. Attorney Melinda A. Williams, Special Assistant U.S. Attorney Erin Gustafson and U.S. Attorney Andrew M. Luger. The United States Attorney’s Office thanks the Olmsted County Attorney’s Office for its substantial assistance in the prosecution of this case.
Defendant Information:LEE ANDREW PAUL, a/k/a “Black,” 35
Bloomington, Minn.Convicted:
- Sex trafficking of a minor, two counts
- Sex trafficking by use of force, fraud and coercion, one count
Tenth Twin Cities Man Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger, Special Agent in Charge for the Minneapolis Division of the FBI Richard T. Thornton and Assistant Attorney General for the National Security Division John P. Carlin today announced a criminal complaint charging ABDIRIZAK MOHAMED WARSAME, 20, with conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL) and providing material support to ISIL. The defendant made an initial appearance today before Senior District Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
“This defendant is the tenth Twin Cities’ man charged as part of a broad conspiracy to provide material support to ISIL,” said US Attorney Luger. “The FBI and prosecutors in my office continue to work without pause to keep Minnesotans safe and bring these defendants to justice.”
“This arrest demonstrates the commitment to U.S. national security by the members of the FBI's Joint Terrorism Task Force,” said Special Agent in Charge Thornton. “The members of this task force work in concert to ensure the protection of the United States and its citizens every day. These efforts will continue as long as threats persist.”
“Abdirizak Warsame conspired with others to travel to Syria to fight with ISIL,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we will continue to work to stem the flow of foreign fighters abroad and to bring to justice those who seek to provide material support to designated foreign terrorist organizations.”
According to the complaint and documents filed in court, in the spring of 2014, WARSAME and his co-conspirators began meeting to watch propaganda videos that glorified religious violence and discussing their aspirations to travel to Syria to join and fight with ISIL. Members of the group, including WARSAME, discussed ways to leave the United States and travel to Syria despite the fact that law enforcement scrutiny of them was intense. At one such meeting, GULED OMAR was elected “emir,” or leader, of the group. Later in 2014 when OMAR was planning to depart for Syria, OMAR appointed WARSAME to replace him as “emir” for the remaining co-conspirators.
According to the complaint and documents filed in court, in the spring of 2014, WARSAME provided $200 to a co-conspirator, ADNAN FARAH, so that A. FARAH could obtain an expedited U.S. Passport so that A. FARAH could travel overseas to join ISIL. WARSAME also applied for an expedited passport in the spring of 2014, but his application was initially denied.
According to the complaint and documents filed in court, WARSAME repeatedly attempted to obtain a telephone number or other contact information of ISIL members, including ISIL member H.K. In June 2014, WARSAME attempted to obtain this contact information so that he could pass the contact information along to Y.J., who was then attempting to travel from Turkey to Syria to join ISIL.
According to the complaint and documents filed in court, in April 2015 WARSAME had actively encouraged OMAR and other co-conspirators to travel to Syria through Mexico, but did not plan to join the Mexico group because he was planning to travel with his family to East Africa. From East Africa, WARSAME planned to either break free from his family and travel to Syria, or wait in Somalia for a time when, he believed, al-Shabaab would pledge allegiance to ISIL, thus expanding ISIL to Somalia.
According to the criminal complaint and documents filed in court, on April 2, 2015, WARSAME recounted a conversation he had with ABDI NUR, before NUR left the United States for Syria. In that exchange, WARSAME told OMAR that he proposed to NUR that they rob people in order to finance their travel to Syria. WARSAME further explained that NUR rejected this idea, and suggested they rob the government instead.
This case is the result of an investigation conducted by members of the FBI-led Joint Terrorism Task Force (JTTF). The JTTF includes members from the following departments: the United States Marshals Service, Bloomington Police Department, Ramsey County Sheriff’s Office, Hennepin County Sheriff’s Office, Federal Air Marshals Service, Customs and Border Patrol, Department of Homeland Security, Minneapolis Police Department, the Airport Police, and the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and John F. Docherty.
Defendant Information:
ABDIRIZAK MOHAMED WARSAME, 20
Eagan, Minn.
Charges:
-
Conspiracy to provide material support to a designated foreign terrorist organization, 1 count
-
Providing 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
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Tenth Minnesota Man Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
Three Co-Conspirators Have Already Pleaded Guilty; Five Expected to Go to Trial in May 2016
Abdirizak Mohamed Warsame, 20, of Eagan, Minnesota, was charged by criminal complaint with conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), announced 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.
“Abdirizak Warsame conspired with others to travel to Syria to fight with ISIL,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we will continue to work to stem the flow of foreign fighters abroad and to bring to justice those who seek to provide material support to designated foreign terrorist organizations.”
“This defendant is the 10th Twin Cities’ man charged as part of a broad conspiracy to provide material support to ISIL,” said U.S. Attorney Luger. “The FBI and prosecutors in my office continue to work without pause to keep Minnesotans safe and bring these defendants to justice.”
“This arrest demonstrates the commitment to U.S. national security by the members of the FBI's Joint Terrorism Task Force,” said Special Agent in Charge Thornton. “The members of this task force work in concert to ensure the protection of the United States and its citizens every day. These efforts will continue as long as threats persist.”
According to the complaint and documents filed in court, in spring 2014, Warsame and his co-conspirators began meeting to watch propaganda videos that glorified religious violence and to discuss their aspirations to travel to Syria to join ISIL. Members of the group, including Warsame, discussed ways to leave the United States and travel to Syria, despite the fact that law enforcement was intensely scrutinizing the group. At one such meeting, Guled Omar was elected “emir,” or leader, of the group. Later in 2014, when Omar was planning to depart for Syria, Omar appointed Warsame to replace him as emir for the remaining co-conspirators.
According to the complaint and documents filed in court, during the same period, Warsame provided $200 to a co-conspirator, Adnan Farah, so that Farah could obtain an expedited U.S. passport to travel overseas to join ISIL. Warsame also applied for an expedited passport during this time, but his application was initially denied.
According to the complaint and documents filed in court, Warsame repeatedly attempted to obtain a telephone number or other contact information of ISIL members, including ISIL member H.K. In June 2014, Warsame specifically attempted to obtain this contact information so that he could pass it along to Y.J., who was attempting to travel from Turkey to Syria to join ISIL.
According to the complaint and documents filed in court, in April 2015, Warsame actively encouraged Omar and other co-conspirators to travel to Syria through Mexico, but did not plan to join their group because he was planning to travel with his family to East Africa. From East Africa, Warsame planned to either break free from his family and travel to Syria, or wait in Somalia for a time when, he believed, al-Shabaab would pledge allegiance to ISIL, thus expanding ISIL to Somalia.
According to the criminal complaint and documents filed in court, on April 2, 2015, Warsame recounted a conversation he had with Abdi Nur, before Nur left the United States for Syria. In that exchange, Warsame told Omar that he proposed to Nur that they rob people in order to finance their travel to Syria, which Nur rejected and suggested instead that they rob the government.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation conducted by members of the FBI-led Joint Terrorism Task Force in Minneapolis.
This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and John F. Docherty of the District of Minnesota and the National Security Division’s Counterterrorism Section.
Warsame Complaint
Lyle “Ty” Hoffman Sentenced to 57 Months in Federal Prison After Pleading Guilty to Armed Bank RobberyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of LYLE HOFFMAN a/k/a “Ty,” 45, to 57 months in prison. HOFFMAN pleaded guilty on July 8, 2015, to armed bank robbery at a Blaine TCF Bank branch. The defendant was sentenced today by United States District Court Judge Richard H. Kyle in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, on August 11, 2014 HOFFMAN, murdered his former partner, Kelly Phillips, at a gas station in Arden Hills, Minn. While on the run from authorities, on August 31, 2014, HOFFMAN, shielded by a blue baseball cap and sunglasses, robbed a TCF Bank branch located on County Road 10 in Blaine, Minn. The defendant ordered a bank teller to give him money, before removing a handgun from his backpack and pointing it at the teller while he repeated his demand. The teller gave HOFFMAN approximately $12,020 during the robbery, included a packet of money containing a dye pack.
According to the defendant’s guilty plea and documents filed in court, reports were made to law enforcement that HOFFMAN was in Prior Lake, Minn., and had been spotted at various casinos. Following up on those tips, law enforcement collected dye-stained money from casinos in Prior Lake and from a transit machine at the Mall of America. The defendant was arrested on September 11, 2014, after walking through the drive-thru lawn of an Arby’s restaurant in Shakopee, Minn. HOFFMAN had more than $3,000 in dye-stained money on him when he was arrested.
The case was the result of an investigation conducted by the Federal Bureau of Investigation and the Blaine Police Department.
This case was prosecuted by Assistant U.S. Attorney Kevin Ueland.
Defendant Information:
LYLE “TY” HOFFMAN, 45
St. Cloud, Minn.
Convicted:
- Armed bank robbery, one count
Sentenced:
-
57 months in prison
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Repeat Offender Convicted in Minnesota of Possession of Child PornographyRead the Press Release
A jury found Frank Russell McCoy, 72, guilty of possession of child pornography after a two-day trial, 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.
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. On Dec. 17, 2013, while McCoy was on bond pending an appeal of his conviction, a U.S. Probation officer observed large numbers of computers and related equipment in McCoy’s home in Minnesota. A search of the computer equipment revealed dozens of videos of child exploitation. Though McCoy had installed forensic wiping software, intended to destroy any evidence of child exploitation images on his computers, the majority of those files had been written onto a portable video player device just before the seizure of the devices.
U.S. District Judge Patrick J. Schiltz of the District of Minnesota presided over the trial. McCoy is scheduled to be sentenced on April 5, 2016.
ICE-HSI investigated this case. Assistant U.S. Attorney Katharine T. Buzicky of the District of Minnesota and Trial Attorney Jeffrey Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting 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. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Repeat Offender Convicted of Possession of Child Pornography Depicting Sexual Abuse of Young ChildrenRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the trial conviction of FRANK RUSSELL MCCOY, 72, who was indicted on January 22, 2015, in the District of Minnesota. A jury returned a guilty verdict after a two-day trial before U.S. District Judge Patrick J. Schiltz. The defendant is expected to be sentenced on April 5, 2016.
According to documents filed in court, MCCOY wrote and distributed short stories describing extreme sexual abuse and other acts of violence perpetrated against very young children. He was convicted in 2013 in the Middle District of Georgia of one count of transportation of obscene matters after sending one such story via the internet to an undercover Homeland Security Investigations agent.
As proven at trial, on Dec. 17, 2013, while MCCOY was on bond pending an appeal of his conviction from Georgia, a U.S. Probation officer observed large numbers of computers and related equipment in MCCOY’s home in Minnesota. A search of the computer equipment revealed dozens of videos of child exploitation. Though MCCOY had installed forensic wiping software, intended to destroy any evidence of child exploitation images on his computers, the majority of those files had been written onto a portable video player device just before the seizure of the devices.
Approximately one month prior to trial, MCCOY was interrupted in the process of typing a sexually explicit story describing the sexual abuse of a young child by her grandfather while he was on supervised and pretrial release and living in a halfway house in the Twin Cities.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky and Trial Attorney Jeffrey H. Zeeman of the Child Exploitation and Obscenity Section of the Department of Justice.
Defendant Information:
FRANK RUSSELL MCCOY, 72
Ostego, Minn.
Convicted:
- Possession of child pornography involving a prepubescent minor, one count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Night Club Bouncer Convicted of Identity Theft and Conspiracy to Defraud the United States for More Than $200,000Read the Press Release
United States Attorney Andrew M. Luger today announced the conviction of JOHN HUNTER, SR., 46, for conspiracy to defraud the United States, false claims and aggravated identity theft. A jury returned a guilty verdict after a four-day trial before Senior U.S. District Judge David S. Doty. A sentencing date has not been set.
As proven at trial, in February 2010, HUNTER, SR., filed a fraudulent 2009 tax return in his own name. In it, he falsely claimed that he had earned $13,000 in 2009 working at Club Rage, Inc., a company that owned a nightclub in Maplewood, Minnesota. Defendant also claimed that Club Rage withheld over $1,200 in taxes from his paychecks, and that he was entitled to an $8,222 tax refund. Though HUNTER, SR., had worked as a nightclub bouncer for Club Rage, he only earned just over $4,000 in wages in 2009 and had no taxes withheld from his paychecks that year. HUNTER, SR., ultimately received a refund of $7,646 based on this fraudulent tax return.
As proven at trial, HUNTER, SR., then filed fraudulent tax returns in the names of several dozen other people in the spring of 2010. HUNTER, SR., recruited tax filers and offered to file their returns and obtain refunds. However, the defendant prepared and filed those returns using fraudulent wage and employment information. HUNTER, SR., repeated a similar scheme in January 2012, in which he again filed fraudulent returns in his own name and that of others.
As proven at trial, HUNTER, SR., filed at least 45 fraudulent tax returns claiming more than $200,000 in tax refunds.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, with substantial assistance from the Minnesota Department of Revenue.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Amber Brennan.
Defendant Information:
JOHN HUNTER, SR., 46
Eagan, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- False claims, 8 counts
- Aggravated identity theft, 2 counts
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Zimmerman Man Sentenced to 252 Months in Prison After Trial Conviction for Distribution of Child PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of LEVI WAYNE BURNS, 40, for distribution and possession of child pornography. BURNS pleaded on guilty on June 5, 2015, to possession of child pornography and was convicted on June 10, 2015, after a jury trial, of one count of distribution of child pornography. The defendant was charged by indictment on November 20, 2014, with one count each of possession and distribution of child pornography. BURNS was convicted in 2005 in Sherburne County, Minn., for criminal sexual conduct in the third degree for engaging in sexual acts with a 15-year-old female child. He was sentenced yesterday in U.S. District Court in Minneapolis, Minn., before U.S. District Judge Patrick J. Schiltz.
According to the defendant’s guilty plea and as proven at trial, in January 2014, BURNS shared via a peer-to-peer computer network several files containing videos of child pornography, including a video depicting two female children between the ages of 10 and 14 engaged in sexual acts. BURNS, who lived in the basement of his parents’ home in Sherburne County, operated an extensive computer system and related equipment. In fact, BURNS was using so much computer power that he and his parents were using the heat generated by the defendant’s computers to heat their house that winter, which was one of the coldest in recent Minnesota history.
According to the defendant’s guilty plea and as proven at trial, BURNS was operating a specially built computer with several hard drives, at least one of which was dedicated to a file sharing program that allowed him to download and share child pornography over the internet. The defendant also saved thousands of files of child pornography on a separate external hard drive.
This was the result of an investigation conducted by the Federal Bureau of Investigation, Sherburne County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorneys Katharine T. Buzicky and Sarah E. Hudleston prosecuted the case.
Defendant Information:
LEVI WAYNE BURNS, 40
Zimmerman, Minn.
Convicted:
-
Distribution of child pornography, 1 count
- Possession of child pornography, 1 count
Sentenced:
-
252 months in prison
-
10 years of supervised release
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Bloomington Man Sentenced to More Than Nine Years in Prison for Conspiring to Use Stolen Identities to Defraud the United States for Millions of DollarsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of AYOTOMIDE AJIFOWOBAJE, 29, to 110 months in prison for using the stolen identities of more than 450 victims to file false tax returns throughout the United States. AJIFOWOBAJE pleaded guilty on July 24, 2015, to conspiracy to defraud the United States and aggravated identity theft. He was sentenced yesterday before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
“Ayotomide Ajifowobaje’s case highlights how seriously IRS Criminal Investigation and the United States Attorney's Office take the issue of identity theft,” said Special Agent in Charge Shea Jones of the St. Paul Field Office IRS Criminal Investigation. “We will continue to investigate those who prey on innocent taxpayers to steal their identities and file false tax returns. IRS Criminal Investigation is committed to bringing these perpetrators to justice.”
According to the defendant’s guilty plea and documents filed in court, between at least May 20, 2014, and February 17, 2015, AJIFOWOBAJE purchased stolen personal identifying information, including names, addresses, dates of birth, and social security numbers, of hundreds of individuals. Using the stolen identities of these victims, the defendant and his co-conspirators “washed” stolen identities to determine whether a legitimate tax return had already been filed by the victim taxpayer. If none had already been filed in the victim’s name, AJIFOWOBAJE would create and electronically file a fraudulent tax return using the victim’s correct identity information but containing false W-2 information, withholding amounts and other fraudulent information. AJIFOWOBAJE then set up fake email addresses to track the status of the return and expected refund.
According to the defendant’s guilty plea and documents filed in court, for the purpose of collecting the refunds from the IRS, AJIFOWOBAJE purchased hundreds of debit cards and activated them using the same stolen identities that he used to file false tax returns. In an effort to conceal his identity from law enforcement, AJIFOWOBAJE and his co-conspirators filed some of the false tax returns from hotels using free Wi-Fi.
This case was the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case was prosecuted by Assistant U.S. Attorney Michelle E. Jones.
Defendant Information:
AYOTOMIDE AJIFOWOBAJE, 29
Bloomington, Minn.
Convicted:
-
Conspiracy to defraud the United States, one count
- Aggravated identity theft, one count
Sentenced:
-
110 months in prison
-
Three years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Blaine Man Sentenced to 282 Months in Prison for Trafficking 18-Year-Old VictimRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of RAHMAD LASHAD GEDDES, a/k/a “Face,” a/k/a “Poo Poo,” 36, to 282 months in federal prison for trafficking an 18-year-old woman from Wisconsin to Duluth, Minn., for the purpose of commercial sex. GEDDES, who was charged in a superseding indictment on April 8, 2015, was convicted on April 27, 2015, following a six-day jury trial.
“This violent defendant preyed on the vulnerabilities of his victim and used force and coercion to sell her for commercial sex,” said Assistant U.S. Attorney Laura Provinzino. “The lengthy sentence handed down by the court underscores the seriousness of these types of crimes, which we will continue to combat through aggressive prosecution.”
St. Louis County Attorney Mark Rubin said: "I want to commend U.S. Attorney Andy Luger for recognizing the tremendous value of combining our offices' efforts. The collaboration between some of our finest prosecutors, as happened in this case, assures justice for a remarkably courageous victim. The work of Assistant United States Attorney Laura Provinzino and Assistant St. Louis County Attorney Jon Holets is an example of the kind of cooperative work we need to help build a safer world. It gives me hope."
As proven at trial, on January 6, 2014, GEDDES recruited the victim from her home in Eau Claire, Wis., for the purpose of trafficking her for commercial sex. The defendant and a friend took the victim to a motel in Duluth, Minn., where they took pictures of her to place an advertisement for commercial sex on backpage.com. GEDDES used an anonymous prepaid credit card to pay for the online advertisement. GEDDES and his friend used the victim’s cell phone to set up several “dates” between the victim and “johns.” On one occasion, after a meeting with a “john,” GEDDES accused the victim of hiding money. The defendant physically assaulted the victim and told her that he hit her because she did not do what she was told.
As proven at trial, on January 9, 2014, GEDDES traded drugs, which he referred to as “rocks,” for two semi-automatic handguns and ammunition. GEDDES has four previous felony convictions in Cook County, Ill., Hennepin County and Sherburne County, Minn., making him an armed career criminal under federal law.
As proven at trial, on January 14, 2014, GEDDES returned the victim to her home. She immediately reported to her pastor that she “had been used for prostitution.”
This case was the result of an investigation conducted by the Federal Bureau of Investigation, Homeland Security Investigations, Duluth Police Department and St. Louis County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino and Special Assistant U.S. Attorney Jon Holets of the St. Louis County Attorney’s Office.
Defendant Information:
RAHMAD LASHAD GEDDES, a/k/a “Face,” a/k/a “Poo Poo,” 36
Blaine, Minn.
Convicted:
- Sex Trafficking by Force, Fraud, or Coercion, 1 count
- Transportation with Intent to Engage in Prostitution, 1 count
- Armed Career Criminal in Possession of a Firearm, 1 count
Sentenced:
- 282 months in prison
- Lifetime supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Eagan Man Charged with Using Social Media to Create and Distribute Child Pornography of High-School StudentsRead the Press Release
United States Attorney Andrew M. Luger today announced a federal criminal complaint charging ANTON MARTYNENKO, 32, with production, advertising, receipt and possession of child pornography. MARTYNENKO was arrested on November 20, 2015, and made an initial appearance yesterday in U.S. District Court in Minneapolis, Minn., before Magistrate Judge Janie S. Mayeron.
“The defendant in this case is charged with using social media to contact teenagers and convince them to create child pornography,” said U.S. Attorney Luger. “I urge teenagers and young adults to be particularly cautious and highly skeptical when encountering strangers online. Unfortunately, there are far too many people who seek to take advantage of and harm our youth over the internet. We will continue to do all we can to stop them.”
According to the criminal complaint and documents filed in court, beginning in at least 2011, ANTON MARTYNENKO created and used various false aliases including “Marie Anna,” “Courtney Jansgen,” and “Marie94mn,” on social media outlets for the purpose of obtaining nude and sexually explicit images and videos of minor males. MARTYENKO created different cover stories, including that he (posing as a woman) had recently moved to Minnesota and was trying to make new friends, that he worked for a nude modeling agency, or that he was a college student at the University of Minnesota. MARTYENKO would engage in sexual conversations with victims and eventually ask for nude images and/or video of the minor male victims.
According to the criminal complaint and documents filed in court, in approximately 2012, MARTYNENKO contacted a victim using the “Marie Anna” handle and claimed to be a woman who recently moved to Minnesota from Illinois who was looking to meet new people. MARTYENKO told the victim that he was handsome and quickly moved to suggesting they exchange nude photographs. MARTYENKO sent pictures to the victim of a nude female, which “Marie Anna” claimed were of herself. The victim then sent nude pictures of himself to “Marie Anna” via social media. MARTYENKO, still using the handle, “Marie Anna,” demanded more photos of the victim, but the victim stopped responding to the messages when he because suspicious of “Marie Anna.” MARTYENKO then threatened to distribute the victim’s nude photographs if the victim did not send more. About one year later, the victim learned that his pictures were being distributed via social media.
According to the criminal complaint and documents filed in court, on October 2, 2015, law enforcement executed a search warrant at MARTYENKO’s Eagan home. Officers discovered several flash drives and other electronic items hidden in the ceiling tiles of one room, along with a shoebox containing a collection of “commercial pornography” involving young men. Law enforcement seized thousands of images of naked teenagers and young men, which were sorted by name, age and hometown. Some photos also included the name of the high school of the victim portrayed.
This case is the result of an investigation conducted by the FBI, Minneapolis Police Department and Rosemount Police Department.This case is being prosecuted by Assistant United States Attorney Carol M. Kayser.
Defendant Information:ANTON MARTYNENKO, 32
Eagan, Minn.Charges:
- Production of child pornography, 2 counts
- Advertising child pornography, 1 count
- Receipt of child pornography, 3 counts
- Possession of child pornography, 1 count
Joint Statement on the Release of EvidenceRead the Press Release
Joint Statement from the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton:
“The U.S. Attorney’s Office for the District of Minnesota, Department of Justice’s Civil Rights Division and FBI Minneapolis Division are conducting an independent investigation into whether the death of Jamar Clark violated any federal criminal statutes. As is our practice in conducting investigations into allegations of constitutional violations committed under color of law, experienced federal prosecutors and FBI agents are conducting a thorough review of all evidence in this case. That includes interviewing relevant witnesses, reviewing relevant information, and pursuing leads. We are doing so in a manner that ensures the integrity of the investigation and the reliability of the information obtained.
“Release of any evidence, including any video, during an ongoing investigation would be extremely detrimental to the investigation. We are conducting our investigation in a fair, thorough, and expeditious manner.”Ponemah Man Convicted of Aggravated Sexual Assault on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of DANA LEE COBENAIS, 23, an enrolled member of the Red Lake Band of Chippewa, for aggravated sexual abuse. A jury returned a guilty verdict after a three-day trial before Senior U.S. District Judge Richard Kyle. A sentencing date has not been set.
As proven at trial, on March 14, 2015, a victim, Jane Doe, had spent part of the day with COBENAIS. When she decided to leave his company, COBENAIS got into her car and would not leave until she agreed to give him a ride. During the course of the ride, COBENAIS grew angry and punched the victim several times in the face. He proceeded to sexually assault her. COBENAIS then got out of the vehicle. The victim drove away but her vehicle ran out of gas near the town of Redby, Minn. Red Lake Police responded to a call for help and noticed that the woman was bleeding extensively. She was taken to the hospital where emergency surgery was performed to repair extensive injuries.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
This case is the result of an investigation conducted by the FBI and Red Lake Police Department.
This case is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:DANA LEE COBENAIS, 23
Ponemah, Minn.Convicted:
- Aggravated sexual abuse, 1 count
Joint Statement of the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the Minneapolis Division of the FBI Richard T. ThorntonRead the Press Release
Joint Statement of the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the Minneapolis Division of the FBI Richard T. Thornton:
“The Department received a request yesterday from Minneapolis Mayor Betsy Hodges asking the FBI and Department of Justice to initiate a criminal civil rights investigation into the police-involved shooting of Jamar Clark. This federal investigation will be conducted by the FBI and will be concurrent to the state’s investigation. The United States Attorney’s Office for the District of Minnesota and prosecutors with the Department of Justice’s Civil Rights Division will independently review all evidence to determine if Mr. Clark’s death involved any prosecutable violations of federal criminal civil rights statutes. We ask for cooperation from any witnesses who believe they have information about the shooting and we urge calm throughout our community while investigators seek to determine the facts. As the investigation is ongoing the Department will have no further comment.”
Construction Contractor Indicted for Making Fradulent Bonding Applications to Win Government ContractsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of GERARD LEAONRD ROY for fraud, money laundering and concealing assets in anticipation of filing for bankruptcy in connection with a series of construction companies he owned and operated. ROY is charged with using the various companies to fraudulently obtain and attempt to obtain government contracts.
“Competitive bidding for government contracts requires all companies to play by the rules,” said U.S. Attorney Luger. “This defendant is charged with gaining an unfair advantage by breaking those rules, failing to meet his obligations and then trying to reap a windfall by declaring bankruptcy. The white collar section in the U.S. Attorney’s Office and our partners in law enforcement will continue to investigate and disrupt fraudulent business practices.”
“The role of IRS Criminal Investigation becomes even more important in bankruptcy and fraud cases due to the complex financial transactions that can take time to unravel,” said Shea Jones, Special Agent in Charge, St. Paul Field Office. “IRS Criminal Investigation is committed to investigating financial fraud and money laundering schemes where individuals attempt to conceal the true source of their money.”
“According to the indictment, committing insurance fraud was just part of business as usual for Gerard Roy and his construction companies,” said Minnesota Commerce Commissioner Mike Rothman. “Roy created fraudulent insurance documents to win bids on multiple construction projects. He took business away from honest contractors, while victimizing his clients and subcontractors with unfinished projects and unpaid bills, all without the financial protection that legitimate insurance bonds would have provided.”
According to the indictment and documents filed in court, between 2010 and February 2015, ROY owned and operated at least seven construction companies, including RSI Associates, Inc., Restoration Specialists, Inc., Road Spec Corporation, Omni Construction Services, Inc., Omni Construction Company, Omni-Midwest, Inc., and Olympic Construction Services, Inc. Through these companies ROY bid on construction contracts offered by public and quasi-governmental organizations, including the City of Minneapolis, City of Hastings, Washington County, Metropolitan Council, Minnesota State Colleges and Universities and others.
According to the indictment and documents filed in court, in order to commission construction projects, public and quasi-governmental entities generally solicit bids from multiple contractors. Among other things, contractors submitting bids are required to obtain surety bonds issued by a third-party insurer, guaranteeing satisfactory completion of the construction project and the payment of all labor and material costs. Such bonds generally cost the contractor between .5 and two percent of the amount of the construction contract.
According to the indictment and documents filed in court, between 2010 and February 2015 ROY used the aforementioned construction companies that he controlled to fraudulently obtain construction contracts from public and private entities through the submission of fraudulent construction bonds asserting that the projects were insured if ROY could not complete the contract or failed to pay subcontractors. In fact, ROY had no such insurance and was ineligible to bid on the projects. ROY fraudulently obtained at least $3 million in construction contracts, at least $1.8 million in payments on those contracts, and caused losses to clients, subcontractors and others of at least $700,000.
According to the indictment and documents filed in court, between 2010 and 2012, ROY controlled and operated Omni Construction Services, through which he bid on construction projects. In order to secure projects commissioned by public or quasi-governmental entities, ROY falsely claimed on bid documents that he had purchased surety bonds. ROY created phony bond documents, including bid bonds, performance bonds and payment bonds, purportedly issued by a surety on behalf of ROY or his company. In order to create these phony documents, ROY forged the signatures of the relevant sureties, witnesses and public notaries. Between 2010 and 2012, ROY obtained at least five construction contracts using fraudulent bid and bond documents, with a total value of at least $850,000.
According to the indictment and documents filed in court, between June 2011 and July 2012, ROY withdrew at least $400,000 from Omni Construction Services’ bank accounts and used that money for his own purposes. In 2012, ROY deposited at least $300,000 in receivables belonging to Omni Construction Services into accounts he opened in the names of other companies. He used a significant portion of those funds for his own purposes, including making house payments and transferring money into a personal bank account. On July 13, 2012, Omni Construction Services filed for Chapter 7 bankruptcy in an attempt to avoid paying approximately $600,000 in liabilities.
According to the indictment and documents filed in court, after serving roughly one year in jail on an unrelated matter, ROY continued operating a construction business, now under the names of RSI Associates and Restoration Specialists. Between 2013 and early 2015, ROY obtained or attempted to obtain at least six construction contracts using fraudulent bid and bond documents, with a total value of at least $2.6 million.
According to the indictment and documents filed in court, between January 2014 and February 2015, ROY used at least $400,000 from RSI’s bank accounts to buy jet skis, snowmobiles, gold coins and luxury automobiles such as a Corvette and Jaguar. ROY also opened a bank account in the name of Road Spec Corporation, into which he deposited at least $100,000 from RSI’s bank accounts. He used those funds for his own purposes. On February 19, 2015, RSI Associates, Inc., filed for Chapter 11 bankruptcy in an attempt to avoid paying approximately $500,000 of RSI’s liabilities.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Minnesota Department of Commerce Fraud Bureau, and United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorney Benjamin Langner.
Defendant Information:
GERARD LEONARD ROY, 53
Prior Lake, Minn.
Charges:
-
Mail fraud, 2 counts
-
Wire fraud, 5 counts
-
Transactional money laundering, 4 counts
-
Concealment of bankruptcy assets, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Two Charged with Conspiracy to Retaliate Against Witness in Federal Trial of Prominent 1-9 Gang MemberRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of TYWIN BENDER, a/k/a/ “Finn Winn,” 25, and ROYAL ANGEL HINES, 20, for conspiring to retaliate against two federal witnesses. HINES made an initial appearance yesterday before Magistrate Judge Tony Leung in U.S. District Court in St. Paul, Minn. BENDER will make an initial appearance today in U.S. District Court in St. Paul, Minn.
“Witness retaliation is an assault on the integrity of our criminal justice system itself,” said U.S. Attorney Luger. “We rely on the honest testimony of witnesses to make communities safer and deliver justice. Retaliatory violence against those witnesses will be dealt with to the fullest extent allowable by law.”
According to the indictment and documents filed in court, BENDER is presently incarcerated at Minnesota Correctional Facility (MCF) – Stillwater on a 75-month sentence for aggravated robbery. He is a member of a North Minneapolis street gang known as the “Stick up Boys.” In November 2014, BENDER was charged in an 11-defendant indictment with conspiracy to possess firearms. BENDER pleaded guilty on October 8, 2015, to the conspiracy. One of his co-defendants, Veltrez Black, a/k/a, “Chief,” was convicted by a jury on October 22, 2015, of conspiracy and other charges contained in the same indictment.
According to the indictment and documents filed in court, during the trial of Black, A.L., a member of the “Stick up Boys,” and K.W., a member of a rival street gang known as the “Taliban,” testified as government witnesses against Black. The day after Black was convicted, BENDER placed a phone call to HINES during which he directed HINES to send an e-mail to two inmates incarcerated at MCF – Rush City, which is the same facility where federal witnesses A.L and K.W. are incarcerated. BENDER dictated the content of the email to HINES as follows: “The nigga Bonus [nickname for A.L.] is a rat. Smash him as soon as you all catch him. Green light. No passes. No talking. He got on the stand on Chief.”
According to the indictment and documents filed in court, HINES sent one e-mail that BENDER had dictated to her to each of the two inmates at MCF – Rush City. One of the emails was intercepted by Department of Corrections employees before it was received but the other e-mail was not intercepted.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.
Defendant Information:
TYWIN BENDER, a/k/a/ “Finn Winn,” 25
Stillwater, Minn.
Charges:
- Conspiracy to retaliate against a federal witness, 1 count
ROYAL ANGEL HINES, 20
St. Paul, Minn.
Charges:
-
Conspiracy to retaliate against a federal witness, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Registered Securities Agent and Financial Advisor Sentenced to 88-Months in Prison for Defrauding at Least 24 Victims for More Than $1.1 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of SUSAN ELIZABETH WALKER, 51, to 88-months in prison. WALKER pleaded guilty last year to stealing more than $1.1 million from at least 24 victims who were clients of a financial planning company run by WALKER and her mother. She was sentenced today before Senior U.S. District Judge Michael Davis in U.S. District Court in Minneapolis.
“Susan Walker preyed upon people who trusted her, stealing repeatedly from vulnerable victims over many years,” said Assistant U.S. Attorney Timothy Rank. “She targeted those with modest retirement savings and used their money to satisfy her own greed. Despite her attempts to cover her crimes, they were uncovered by the excellent work of the IRS, FBI and the Fraud Bureau of the Minnesota Department of Commerce. Although Walker’s victims will likely never be made financially whole, the sentence handed down today by the Court is both appropriate and fair, and gives some solace to the people she betrayed.”
“Walker stole her clients’ life savings by abusing her position of trust,” said Minnesota Commerce Commissioner Mike Rothman. “Many of Walker’s victims were seniors who counted on her to manage their accounts responsibly, but instead she diverted their hard-earned savings to finance her own lavish lifestyle. The Commerce Department, and in this case the Commerce Fraud Bureau, is working closely with prosecutors and other law enforcement agencies to stop financial crimes.”
“People rely on the advice and trust the services of their financial advisor to make life decisions. They expect them to be honest and trustworthy,” said Shea Jones, Special Agent in Charge of the IRS Criminal Investigation, St. Paul Field Office. “Ms. Walker violated this expectation, and stole from her clients for her own personal gain. Let this sentence serve as a deterrent to those who may contemplate similar fraudulent actions.”
According to the defendant’s guilty plea and documents filed in court, from October 2008 until March 2013, WALKER provided financial planning services to several clients through her affiliation with Ameriprise Financial Inc. She was a securities agent registered with the Minnesota Department of Commerce, and a financial advisor registered with the Financial Industry Regulatory Authority (FINRA). WALKER stole from her clients by misusing her access to several victim retirement accounts and causing checks to be drawn from victim accounts and deposited into accounts that she controlled.
According to documents filed in court and statements made on the record in court, WALKER also opened investment brokerage accounts in her own name, and in the names of several victim-clients without their knowledge or authorization, which she used to conceal money stolen from other clients. She caused money to be withdrawn from retirement accounts belonging to clients and deposited in those brokerage accounts, which she took for her own personal use. WALKER used the money she stole to pay for, among other things, private school tuition, salon appointments, vehicles and for her own expensive vacation travel.
According to her guilty plea, in addition to stealing from her clients, WALKER also failed to report any of the funds obtained through fraud on her tax returns. The total tax loss on her unreported income is approximately $325,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the Fraud Bureau of the Minnesota Department of Commerce and the FBI, with significant assistance from Ameriprise Financial, Inc, and the Office of the Minnesota Attorney General.
This case was prosecuted by Assistant U.S. Attorney Timothy Rank.
Defendant Information:
SUSAN ELIZABETH WALKER, 51
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Tax Evasion, 1 count
Sentenced:
- 88 months in prison
- Three years supervised release
- $978,950.51 restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
White Earth Man Sentenced to 27 Years in Prison for MurderRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of CHARLES JAMES JONES, 50, to 27 years in prison. JONES was convicted by a jury on March 10, 2015, after a seven-day trial, of burning his girlfriend alive while she was unconscious. JONES was sentenced today in U.S. District Court in St. Paul by U.S. District Judge Susan Richard Nelson.
As proven at trial, in December 2013, JONES and his girlfriend, Shalonda Clark, were huddled in the living room of their home in Ponsford, Minn., trying to stay warm from the heat of the oven. Clark became unconscious and laid immobile on a couch in the living room. At that time, JONES took a blanket, lit it on fire, and threw it on top of Shalonda Clark’s defenseless body.
As proven at trial, Shalonda Clark never regained consciousness to escape the blaze. JONES however, fled the burning house to another house across the road. Though his neighbors, who could clearly see the burning house across the road, asked JONES where Shalonda Clark was, he told them that he did not know. Nonetheless, the neighbors went to the defendant’s home to look for Shalonda Clark. JONES did not help them, nor did he tell them where in the house she could be found. Clark’s charred remains were later recovered from among the ashes of the couch.
This case was the result of an investigation conducted by the Becker County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, the FBI and the White Earth Police Department.
This case was prosecuted by Assistant U.S. Attorneys Kevin S. Ueland and Julie E. Allyn of the Major Crimes Section of the U.S. Attorney’s Office.
Defendant Information:
CHARLES JAMES JONES, 50
Ponsford, Minn.
Convicted:
- Murder in the Second Degree, 1 count
Sentenced:
-
27 years in prison
-
Five years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Robert Schueller Sentenced to Five Years in Prison for Sending Threatening CommunicationRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ROBERT JAMES SCHUELLER, 30, to five years in prison. SCHUELLER was charged by Information and pleaded guilty on May 26, 2015, to devising a plot to harm his former paramour’s fiancé. He was sentenced today by U.S. District Judge Richard H. Kyle in United States District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, SCHUELLER, then vice-president of Nomad Pipeline (Nomad) and married to then president M.S., had an extra-marital affair with an employee of Nomad’s sister company. Approximately three months after R.T. ended the relationship with SCHUELLER, SCHUELLER learned that R.T. was in a relationship with C.A. Therefore, SCHUELLER began attempting to win back R.T.’s affections. When the defendant was unable to win back R.T., he began pursuing various schemes to get C.A. out of the picture and away from R.T.
According to the defendant’s guilty plea and documents filed in court, on February 6, 2014, SCHUELLER called W.E., another Nomad employee, and asked if W.E. stayed in contact with any of his prison contacts because SCHUELLER had a guy that needed to “go away.” Over the course of several months, SCHUELLER and W.E. communicated back and forth concerning the defendant’s desire to find someone willing to harm C.A. Once W.E. provided SCHUELLER a specific name as a possible person who could injure C.A., SCHUELLER sent W.E. a package containing $10,000 in cash and a business card, on which C.A.’s name was written. On May 2, 2014, W.E. informed SCHUELLER that he was unable to find someone to carry out the plot to injure C.A. and then returned the $10,000 to SCHUELLER. After this conversation, SCHUELLER texted W.E. and instructed him to burn the business card.
According to the defendant’s guilty plea and documents filed in court, SCHUELLER admitted to attempting to contact several other Nomad employees seeking their assistance in causing bodily injury to C.A. SCHUELLER further admitted to plotting various seduction schemes in an attempt to break-up C.A. and R.T. For example, in January 2014, SCHUELLER paid his sister-in-law $500 to seduce C.A.; and in May 2014, SCHUELLER posted a Craigslist ad titled “Girls – 1 time $5,000 cash offer” that sought a “pretty girl” to “break up a couple by any means necessary” and offered payment for such services.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and the Stearns County Sheriff’s Office.
This case was prosecuted by Assistant United States Attorneys Julie E. Allyn and Steven L. Schleicher of the Special Prosecutions Section of the U.S. Attorney’s Office.
Defendant Information:
ROBERT JAMES SCHUELLER, 30
Farming Township, Minn.
Convicted:
-
Threats Transmitted by Interstate Communication, 1 count
Sentenced:
-
Five years in prison
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
-
Stearns County Man Charged with Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, Minnesota Bureau of Criminal Apprehension (BCA) Superintendent Drew Evans and Stearns County Sheriff John Sanner today announced a federal criminal complaint charging DANIEL JAMES HEINRICH, 52, with receipt and possession of child pornography. HEINRICH made an initial appearance today in U.S. District Court in St. Paul, Minn., before Magistrate Judge Jeffrey J. Keyes. A detention hearing is expected to be held on Monday, November 2, 2015.
According to the federal criminal complaint and documents filed in state court, a search warrant was executed on July 28, 2015, at the Annandale, Minn., home of the defendant, seeking evidence related to the January 13, 1989, kidnapping and sexual assault of a Cold Spring, Minn., juvenile male and the October 22, 1989, abduction of a St. Joseph Township, Minn., juvenile male. During the execution of the search warrant, officers recovered numerous images of suspected child pornography from the residence. Those images were maintained in multiple three-ring binders and on the hard drive of a desktop computer.
“The charges against Mr. Heinrich result from a long-term child exploitation investigation,” said U.S. Attorney Luger. “Every image of child pornography victimizes a young person. Their lives and those of their families are never the same. This investigation wasn’t initiated to pursue those who trade in child pornography, but that’s what it uncovered and that’s what we’ve charged. The Stearns County Sheriff, Minnesota Bureau of Criminal Apprehension and the FBI continue the relentless pursuit of justice through this ongoing investigation for those who have lost loved ones.”
“This arrest sends a clear message to those who would exploit children: Law enforcement is actively pursuing you,” said Special Agent in Charge Thornton. “Children are the most innocent among us and there is no greater cause than their safety and protection. The FBI, in conjunction with our law enforcement partners, will continue to aggressively seek those who would victimize children.”
“An investigation of this length and nature requires an unwavering commitment dedicated to ensure that in the end justice is served,” said Stearns County Sheriff John L. Sanner. “The Stearns County Sheriff’s Office is grateful for and appreciates this level of commitment from our partners, the BCA, the FBI and the community as a whole.”
“Our pursuit of predators who target our children will never stop,” said BCA Superintendent Drew Evans. “It doesn’t matter how long ago it happened. In fact, as the science and the tools we use improve year after year, so does our ability to solve these crimes.”
According to the criminal complaint, among the suspected child pornography images stored in three-ring binders in HEINRICH’s home were more than 100 images that appear to depict child pornography, some of which depict known child victims, based on a review of national database of known victims of sexual abuse. In addition to the printed images, digital images of suspected child pornography were recovered from the defendant’s computer hard drive. Investigators also recovered hours of videos, apparently surreptitiously recorded by HEINRICH, of neighborhood children delivering newspapers, riding bicycles, playing in public playgrounds and participating in sporting activities.
In addition to the suspected child pornography discovered in HEINRICH’s home, and according to the criminal complaint, a recently-tested article of clothing worn by the juvenile male during a 1989 Cold Spring abduction and sexual assault was found to contain the defendant’s DNA. According to the BCA laboratory report, the predominant male DNA profile matches a known sample of the defendant. The predominant profile match to the defendant’s DNA would not be expected to occur more than once among unrelated individuals in the world population.
If you have information about this case, please contact the Stearns County Sheriff’s Office at 1-320-656-6625 or the National Center for Missing and Exploited Children at 1-800-THE-LOST.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant United States Attorneys Steven L. Schleicher and Julie Allyn of the U.S. Attorney’s Office’s Special Prosecutions Unit.
Defendant Information:
DANIEL JAMES HEINRICH, 52
Annandale, Minn.
Charges:
- Possession of child pornography, 4 counts
- Receipt of child pornography, 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.
Twin Cities Carpet Cleaner Sentenced to 21 Months in Prison After Pleading Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of JAMES SIGANOS, 50, to 21 months in prison. SIGANOS was charged on May 26, 2015, by felony information, of evading corporate income taxes. He pleaded guilty on June 11, 2015, before U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn. In addition to the 21 month prison sentence, SIGANOS was also ordered to pay $300,619 in restitution.
“This defendant took affirmative steps to hide his business income from the government,” said Assistant United States Attorney Joseph H. Thompson. “But the Criminal Investigation Division of the IRS noticed and stopped Mr. Siganos from continuing to engage in his willful criminal conduct.”
According to his guilty plea and documents filed in court, SIGANOS was the owner of a carpet-cleaning business located in Mound, Minnesota. As owner of the company, the defendant was responsible for filing federal corporate tax returns on behalf of the company. SIGANOS filed a Form 1120S U.S. Income Tax Return for the calendar year 2009, in which he underreported his company’s gross receipts or sales as $246,166.
In 2009, SIGANOS’ company had approximately $591,013 in gross receipts or sales. To avoid paying taxes on the full amount of his company’s revenue, SIGANOS cashed more than 1,400 checks totaling approximately $410,905 at a check cashing facility in Minneapolis. The result was that the defendant underreported his 2009 income by approximately $344,858. SIGANOS filed no corporate income tax returns for the tax years 2010, 2011, and 2012, resulting in an underreporting of approximately $438,991. The total tax loss caused by SIGANOS is approximately $300,000.
This case was the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This was prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
Defendant Information:JAMES SIGANOS, 50
Mound, Minn.Convicted:
• Tax Evasion, 1 countSentenced:
• 21 months in prison
• $300,619 in restitutionJury Trial Results in Conviction of Pominent 1-9 Gang Member for Conspiracy to Possess FirearmsRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of VELTREZ BLACK, a/k/a “Chief,” for participating in two street gangs operating throughout Hennepin County. The defendant was a prominent member of the 1-9 gang, which worked together with the Stick up Boys gang to illegally obtain and jointly possess firearms. BLACK was convicted yesterday after a jury trial in federal court of conspiracy and felon in possession of a firearm. A sentencing date has not been set. The other ten co-conspirators indicted in this case have all pleaded guilty.
As proven at trial and according to the defendants’ guilty pleas, the defendants coordinated their illegal activities in order to obtain firearms by theft, trading drugs for guns, and by using straw purchasers without felony histories to buy guns for those members of the gang with felony records. On five separate occasions between August 2010 and November 2014, BLACK was in possession of a total of 12 separate guns while a convicted felon and while in the company of other 1-9 gang members who also were convicted felons. The 1-9 and Stick Up Boys were in a gang war with two other rival gangs. The gang war resulted in the shooting deaths and wounding of numerous gang members on both sides of the conflict. At least fifteen alleged gang members were killed or wounded by gunfire during the gang conflict.
Due to the conflict, members of 1-9 and Stick Up Boys conspired with straw purchasers to illegally acquire and jointly possess firearms. The straw purchasers, DEONTAY JONES and LAKESHA COLEMAN, purchased at least ten guns in their own names and provided at least some of those firearms to members of the 1-9 and Stick Up Boys. JONES filed false police reports explaining that these guns were stolen from his home, when in fact, at least two of the guns were provided to 1-9 gang members.
This case is the result of an investigation conducted by the Hennepin County Violent Offender Task Force (VOTF), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department. The investigation began as part of an ongoing effort to reduce gang activity connected with numerous incidents of violent crime in Hennepin County. VOTF investigators on this case include personnel from the Hennepin County Sheriff’s Office, Brooklyn Park Police Department, Brooklyn Center Police Department, Golden Valley Police Department, and Richfield Police Department.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Paulsen.
Defendant Information:VELTREZ BLACK, a/k/a “Chief”
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countTYWIN BENDER, a/k/a “Finn Winn”
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 countNITELEN JACKSON, a/k/a “King Nite”
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 countDONTEVIUS CATCHINGS, a/k/a “Lil Snake”
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 countCINQUE OWENS
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 countJABARI JOHNSON
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countDARRYL PARKER, a/k/a “Thirsty”
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countMARQUIS WOODS, a/k/a “Quis Moe”
Convicted:
• Felon in Possession of a Firearm, 1 countMARQUES ARMSTRONG, a/k/a “Lil Kease”
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 countDEONTAY JONES
Convicted:
• Unlawful controlled substances user in possession of firearms, 1 countLAKESHA COLEMAN
Convicted:
• Conspiracy – Felon in Possession of Firearms, 1 countTwice Convicted Child Sex Offender Found Guilty by Federal Jury of Child Pornography ChargesRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the conviction of REX LEE FURMAN, 52, of Federal Dam, Minnesota, to all counts of the indictment against him. The jury found FURMAN guilty of producing, receiving, distributing and possessing child pornography, as well as committing a felony offense while being required to register as a sex offender. After a three-day trial before Senior U.S. District Judge David S. Doty, the jury returned the guilty verdict in less than two hours. A sentencing date has not been set, however due to his prior convictions, FURMAN is subject to a mandatory life sentence.
As proven at trial, in August 2013 a special agent with the Minnesota Bureau of Criminal Apprehension (BCA) began an internet investigation using peer-to-peer (P2P) software. An officer with the Minneapolis Police Department began a separate and independent investigation in October 2013. During these investigations, both law enforcement officers obtained child pornography videos from the same internet protocol (IP) address linked to the defendant’s home.
As proven at trial, on February 13, 2014, BCA executed a search warrant at FURMAN’s residence in Federal Dam with the assistance of the Cass County Sherriff’s Office. FURMAN acknowledged at that time that he looked for and downloaded child pornography. FURMAN also informed a Special Agent that he had produced images depicting the genitalia of two girls who were in his care at the time. A full forensic analysis of FURMAN’s computers and digital media revealed two sets of child pornography that he produced in August and September of 2012 that included graphic photos and a video of the girls’ genitalia. At the time of the production, one girl turned four-years-old and the other was five-years-old. Investigators also found hundreds of images and videos of child pornography depicting prepubescent children engaged in sex acts with adults.
The defendant has two prior state court convictions for engaging in sex acts with minors. In December 1981, Furman pled guilty to fourth degree criminal sexual conduct in Wright County, Minnesota, for sexually abusing a five-year-old girl who was in his care. On January 13, 1999, the defendant was convicted of first degree criminal sexual conduct in Hennepin County, Minnesota, for sexually abusing a ten-year-old girl in his care. As a result of the second conviction, the defendant was required to register as a sex offender until 2021.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension, which leads the Minnesota Internet Crimes Against Children Task Force, the Minneapolis Police Department, which is a member of the FBI Child Exploitation Task Force and the Cass County Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorney Melinda A. Williams of the District of Minnesota and Assistant Deputy Chief Alexandra R. Gelber from the Criminal Division’s Child Exploitation and Obscenity Section.
Defendant Information:REX LEE FURMAN, 52
Federal Dam, Minn.Convicted:
• Production of child pornography, 13 counts
• Distribution of child pornography, 2 counts
• Receipt of child pornography, 1 count
• Possession of child pornography, 1 count
• Commission of a felony offense involving a minor when required to register as a sex offender, 1 countRecidivist Child Sex Offender Convicted of Child Pornography ChargesRead the Press Release
A Minnesota man with two prior convictions for sexually abusing children was convicted today of child pornography charges. 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 made the announcement.
Rex Lee Furman, 52, of Federal Dam, Minnesota, was found guilty following a three-day trial of producing, receiving, distributing and possessing child pornography, and committing a felony offense while being required to register as a sex offender. Senior U.S. District Judge David S. Doty of the District of Minnesota presided over the trial. Sentencing will be set at a later date. Due to his prior convictions, Furman is subject to a mandatory life sentence plus 10 years in prison.
According to the evidence presented at trial, in the fall and winter of 2013, during separate investigations by the Minnesota Bureau of Criminal Apprehension (BCA) and the Minneapolis Police Department, law enforcement officers obtained child pornography videos from an Internet protocol (IP) address linked to Furman’s home. The evidence showed that, thereafter, on Feb.13, 2014, during a search of his residence, which was executed with the assistance of the Cass County Sheriff’s Office, Furman acknowledged that he had downloaded child pornography. According to the trial evidence, he also informed a special agent that he had produced images depicting the genitalia of two girls who had been in his care, one who turned four years old and one who was five years old at the time. The trial evidence showed that subsequent forensic analysis of Furman’s computers and digital media revealed child pornography that he produced in August and September of 2012 that included sexually explicit photos and a video. According to the trial evidence, investigators also found hundreds of images and videos depicting children engaged in sex acts with adults.
Furman has two prior Minnesota state court convictions for engaging in sex acts with minors. In December 1981, Furman pleaded guilty to sexually abusing a five-year-old girl who was in his care. In January 1999, Furman was convicted after a bench trial of sexually abusing a 10-year-old girl in his care. As a result, he was required to register as a sex offender until 2021.
This case was investigated by the Minnesota BCA, which leads the Minnesota Internet Crimes Against Children (ICAC) Task Force, and the Minneapolis Police Department, which is a member of the FBI Child Exploitation Task Force. The case is being prosecuted by Assistant U.S. Attorney Melinda A. Williams of the District of Minnesota and Assistant Deputy Chief Alexandra R. Gelber of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Votes Second Superseding Indictment Charging Five with Conspiracy to Murder OverseasRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger and FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton today announced a second superseding indictment charging five Minnesotans with conspiracy to murder overseas, perjury and other charges. The indictment, which was originally filed on February 19, 2015, and superseded on May 18, 2015, is the result of a long-term investigation led by the Minneapolis Division of the FBI into a group of individuals who have tried to join – and in some cases succeeded in joining – the Islamic State of Iraq and the Levant.
At least nine Minnesotans have now been charged as part of this conspiracy. Three of the men charged have pleaded guilty, including ABDULLAHI YUSUF (February 16, 2015), HANAD MUSSE (September 9, 2015), and ZACHARIA ABDURAHMAN (September 17, 2015). The remaining defendants, HAMZA AHMED, ADNAN FARAH, GULED OMAR, ABDURAHMAN DAUD and MOHAMED FARAH, are scheduled to go to trial on February 16, 2016, before Senior U.S. District Judge Michael Davis.
This second superseding indictment charges OMAR, AHMED, DAUD, A. FARAH, and M. FARAH with conspiracy to murder overseas. A. FARAH is additionally charged with two counts of perjury for false testimony provided to the grand jury. M. FARAH and DAUD are each charged with one count of perjury for false testimony given before the grand jury. OMAR is charged with attempted financial aid fraud for trying to use $5,000 of financial aid to fund his travel to Turkey.
Beyond these additional charges, the charges in the original indictment and the first superseding indictment are re-alleged. The new counts against the defendants are listed below.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
Defendant Information:
HAMZA AHMED, 20
Savage, Minn.Charges:
• 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
• False statement, 1 count
• Financial aid fraud, 1 countMOHAMED FARAH, 21
Minneapolis, Minn.Charges:
• 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 countGULED OMAR, 21
Minneapolis, Minn.Charges:
• 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 countABDIRAHMAN DAUD, 21
Minneapolis, Minn.Charges:
• 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
• Perjury, 1 countADNAN FARAH, 19
Minneapolis, Minn.Charges:
• 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
• Perjury, 2 countsThree Members of Violent Minneapolis-Based Gangs Indicted on Federal Firearms ChargesRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging three members of the Minneapolis-based Taliban gang and the Young N’ Thuggin’ (YNT) gang. All three defendants were charged with conspiracy to possess firearms and ammunition, ROBERT WINFIELD ANDERSON, a/k/a “Rob Moe,” 26, and ROBERT LEVELLE FRELIX, a/k/a “Lil Rob,” 24, were charged with possession of firearms and ammunition by a felon, and SHANE JAMAL JACKSON, a/k/a “Sunny,” 23, was charged with possession of firearms by a felon. All three defendants made their initial appearances yesterday before U.S. Magistrate Judge Steven E. Rau. Detention hearings are set for Monday morning.
According to the indictment and documents filed in court, from at least June 2011 through at least June 2015, the defendants participated in the activities of two closely associated street gangs, the Taliban and the YNT (“Taliban/YNT”). The Taliban/YNT are organized for the purpose of making money for the gang members by trafficking in illegal drugs, armed robberies and thefts. In addition to making money through criminal activity, the purpose of the Taliban/YNT is to obtain and use firearms. All three defendants have prior felony offenses that make them ineligible to possess firearms.
According to the indictment and documents filed in court, an ongoing gang war between the Taliban/YNT and their rivals, the 1-9 Dipset and Stick Up Boys gangs, has resulted in the shooting deaths of numerous gang members on both sides of the conflict. Due to the ongoing gang war, and the need for weapons to conduct other illegal activity, the three defendants and other members of the Taliban/YNT conspired to illegally obtain and jointly possess firearms. As an example, on September 21, 2014, FRELIX, JACKSON and another gang member engaged in a gun battle with rival gang members near 24th Street and Aldrich Avenue in North Minneapolis. Following the shootout, law enforcement recovered one Glock .40 caliber pistol and two Glock 9mm pistols from the scene.
This indictment is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, Hennepin County Sheriff’s Office and the Safe Streets Task Force.
This case is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Defendant Information:
ROBERT WINFIELD ANDERSON, a/k/a “Rob Moe,” 26
Minneapolis, MN
Charges:
- Conspiracy – Felon in Possession of Firearms and Ammunition, 1 count
- Felon in Possession of a Firearm, 3 counts
- Felon in Possession of Ammunition, 1 count
ROBERT LEVELLE FRELIX, a/k/a “Lil Rob,” 24
Minneapolis, MN
Charges:
- Conspiracy – Felon in Possession of Firearms and Ammunition, 1 count
- Felon in Possession of a Firearm, 3 counts
- Felon in Possession of Ammunition, 1 count
SHANE JAMAL JACKSON, a/k/a “Sunny,” 23
Unknown
Charges:
- Conspiracy – Felon in Possession of Firearms and Ammunition, 1 count
- Felon in Possession of a Firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Northern Minnesota Man Found Guilty of Sexually Abusing Two Women on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of WILLIAM ANDREW CLARK, 66, of Blackduck, Minn., for sexually abusing two women on the Red Lake Indian Reservation. On May 12, 2015, CLARK was indicted on one count of Aggravated Sexual Abuse and one count of Sexual Abuse involving these two women. On September 24, 2015, following a two-day trial, United States District Court Judge Donovan W. Frank found CLARK guilty on all counts.
As proven at trial, in the fall of 2013, CLARK sexually assaulted a woman on the Red Lake Indian Reservation. The woman was intoxicated and unconscious when CLARK raped her. On September 11, 2014, CLARK forcibly sexually assaulted another woman, having driven the victim to a remote part of the Red Lake Indian Reservation and raping her.
U.S. District Judge Donovan W. Frank will sentence CLARK at a later date, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Police Department.
Assistant U.S. Attorney Clifford B. Wardlaw is prosecuting this case.
Defendant Information:
WILLIAM ANDREW CLARK, 66
Blackduck, Minn.
Convicted:
- Aggravated Sexual Abuse, 1 count
- Sexual Abuse, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minnesota Man Convicted by Federal Jury of Producing Pornographic Images of Two MinorsRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of SEAN GERALD PENONCELLO, 41, 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 found PENONCELLO guilty of all counts. A sentencing date has not yet been set.
Assistant U.S. Attorney Laura Provinzino said: “These are among the most difficult but important cases to prosecute. The jury's verdict ensures that a man who is an opportunist and who has repeatedly sexually exploited children cannot do it again.”
Sergeant John Backman of the St. Louis County Sheriff’s Office said: “This conviction will protect other children from the predatory behavior of Mr. Penoncello. In addition, the conviction sends a message to others involved in this underground activity that they will be pursued, located, and brought to justice.”
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 case is being 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, 41
Iron, Minn.
Convicted:
- Production of Child Pornography, 2 counts
- Possession of Child Pornography, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Bloomington Pain Management Doctor Indicted for Accepting Kickbacks as Part of Large Scale Health Care Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of ELENA LEV POLUKHIN, 58, for writing prescriptions for pain medication as part of a health care fraud conspiracy in which POLUKHIN received kickbacks from Best Aid Pharmacy. POLUKHIN is charged with conspiracy to commit health care fraud, soliciting and receiving kickbacks, health care fraud, aggravated identity theft and distribution of controlled substances. The defendant made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
“As charged, this defendant abused her position as a doctor, took kickbacks and participated in a significant fraud of Medicare and Medicaid,” said U.S. Attorney Luger. “In addition to funneling kickbacks through a charitable non-profit, Dr. Polukhin wrote unwarranted prescriptions for pain cream and prescribed opioids without any legitimate medical purpose. As Minnesota continues to struggle with our pain pill problem, it is cases like this that so clearly demonstrate the lengths to which some will go to abuse the health care system.”
“Minnesota is not immune to the prescription drug epidemic that continues to plague our nation at an alarming rate,” said Drug Enforcement Administration Assistant Special Agent in Charge Dan Moren. “Dr. Elena Polukhin contributed to this epidemic by keeping patients hooked on addictive pain killers and placing an emphasis on generating profits, by fraudulently billing Medicare and Medicaid, versus fulfilling her obligation to enhance the sound mind and body of her clients.”
"Those who commit health care fraud will be actively pursued by law enforcement. The FBI, along with its partners, will hold health care providers to account if they prey upon those seeking treatment and commit fraud against taxpayers," said Federal Bureau of Investigation Special Agent in Charge Richard Thornton.
“Physicians and pharmacists are entrusted to make decisions that are medically necessary and that are in the best interest of their patients, not for their own personal financial gain”, said Lamont Pugh III, Special Agent in Charge – Chicago Region, U.S. Department of Health and Human Services, Office of Inspector General. “The OIG will continue to work with our law enforcement partners to identify fraud schemes that jeopardize patient safety and well-being and hold those who execute these schemes accountable.”
According to the indictment and documents filed in court, ELENA POLUKHIN was a physician specializing in physical medicine and rehabilitation. She was a participating provider in Medicare and Medicaid. Most of her patients were Medicare and Medicaid beneficiaries. POLUKHIN was the sole owner and CEO of Rehabilitation Consultants in Bloomington, Minn. Rehabilitation Consultants specialized in pain management and rehabilitation.
According to the indictment and documents filed in court, from at least February 2011 through December 2014, POLUKHIN conspired with others to fraudulently bill Medicare and Medicaid for topical pain-relief creams that she prescribed. The defendant referred virtually every patient prescribed topical pain-relief cream to a single pharmacy, Best Aid, which prepared and dispensed the topical pain-relief creams.
According to the indictment and documents filed in court, BORIS LEO RABICHEV, the manager and part-owner of Best Aid who was charged separately by information, and RICHARD WAYNE CUSTER, a pharmacist at Best Aid who was also charged separately by information, compounded pain creams using bulk-powder forms of the various ingredients called for by the prescriptions and dispensed in the pain creams to customers. Best Aid then submitted claims for reimbursement to Medicare and Medicaid that falsely represented that the pain creams had been made using tablet, capsule or liquid forms of the various ingredients in the pain creams. By including these false representations, Best Aid generated inflated reimbursements on the pain creams. In exchange for POLUKHIN referring all of the prescriptions for these pain creams to Best Aid, RABICHEV paid POLUKHIN more than $40,000 in kickbacks.
According to the indictment and documents filed in court, RABICHEV, at POLUKHIN’s request, made monthly kickback payments to POLUKHIN in the form of checks payable to the Roife-Nissenbaum Trust (RN Trust). The RN Trust was a 501(c)(3) charitable trust founded by POLUKHIN, who also acted as its chair of the board and president. The RN Trust purportedly supported several programs and services, including scholarships to students; a directory of medical providers; fitness programs; humanitarian missions and international collaborations; a mental health and chemical dependency program; medical research; and a “starving artists project.” Between at least June 2012 and March 2014, Best Aid wrote at least 20 checks to the RN Trust for the purpose of paying more than $43,000 of kickbacks to POLUKHIN.
According to the indictment and documents filed in court, POLUKHIN also knowingly wrote prescriptions, on at least one occasion, for morphine and oxycodone in the absence of a legitimate medical purpose and outside the course of usual professional practice.
This case is the result of an investigation conducted by the Drug Enforcement Administration (DEA) Tactical Diversion Squad, which is comprised of agents, officers and deputies from the DEA, Federal Bureau of Investigation, Food and Drug Administration, Minneapolis Police Department, Plymouth Police Department, Ramsey County Sheriff’s Office, Washington County Sheriff’s Office, the Minnesota Army National Guard, and the U.S. Department of Health and Human Services – Office of Inspector General.
The DEA Tactical Diversion Squad has established a hotline if you have information or questions concerning Rehabilitation Consultants and/or Dr. Elena Polukhin – please call 612-344-4189. To provide information online related to Rehabilitation Consultants and/or Dr. Polukhin, please visit www.deadiversion.usdoj.gov and select the “Report Illicit Pharmaceutical Activities - RX Abuse Reporting Link.”
This case is being prosecuted by Assistant United States Attorney John E. Kokkinen.
Defendant Information:
ELENA LEV POLUKHIN, 58
Minnetonka, Minn.
Charges:
- Conspiracy to commit health care fraud, 1 count
- Soliciting and receiving kickbacks, 20 counts
- Health care fraud, 3 counts
- Aggravated identity theft, 3 counts
- Distribution of controlled substances, 2 counts
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Department of Justice Awards Law Enforcement Hiring Grants to Help Build Trust, Reduce Violence and Protect SchoolRead the Press Release
United States Attorney General Loretta Lynch and United States Attorney Andrew M. Luger today announced Office of Community Oriented Policing Services (COPS Office) funding awards to five cities and counties in the District of Minnesota, aimed at creating, and in some cases protecting, 23 law enforcement positions. Over $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including $2,875,000 in the District of Minnesota.
The list of this year’s grantees includes: The City of Aitkin, the Hennepin County Sheriff’s Department, the Mille Lacs County Sheriff’s Department, St. Cloud Police Department, and the City of St. Paul.
“Working with our local law enforcement partners on a wide array of cases is critical to upholding justice in Minnesota,” said U.S. Attorney Luger. “COPS grants to grow local police and sheriff’s departments are an important resource from the federal government to benefit local cities and counties. I am gratified that our local partners are benefitting from this investment in our communities.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Zacharia Abdurahman Pleads Guilty to Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney Andrew M. Luger, Assistant Attorney General John P. Carlin and FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton today announced the guilty plea of ZACHARIA YUSUF ABDURAHMAN, 20, who conspired with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. MUSSE was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. ABDURAHMAN pleaded guilty today before Senior U.S. District Judge Michael Davis in United States District Court in Minneapolis, Minn.
“Zacharia Abdurahman is the third co-conspirator to plead guilty and admit in detail his longstanding efforts to join ISIL,” said U.S. Attorney Luger. “Despite being stopped by federal agents on his first attempt, Abdurahman continued to seek ways to join this terrorist group. We hope that Abdurahman’s guilty plea today, and those of Hanad Musse and Abdullahi Yusuf before him, deter others from planning to join ISIL.”
“Zacharia Yusuf Abdurahman conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we remain committed to stemming the flow of foreign fighters abroad and bringing to justice those who attempt to provide material support to terrorists.”
“The FBI will continue to fight terrorism recruitment and material support with every available resource,” said Special Agent in Charge Thornton. “We stand alongside our Somali community partners in Minnesota to prevent terror groups from targeting their youth.”
As admitted by the defendant in his guilty plea, between March and June 2014, ABDURAHMAN became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. ABDURAHMAN joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement, and the feasibility of using fraudulent travel documents to travel to Syria.
As admitted by the defendant in his guilty plea, by June 2014, ABDURAHMAN knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul International Airport. Nevertheless, ABDURAHMAN continued to make preparations to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, on November 6, 2014, ABDURAHMAN and co-conspirators MOHAMED FARAH, HAMZA AHMED, and HANAD MUSSE purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, ANDURAHMAN purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. MUSSE knew that ABDURAHMAN purchased a ticket on the same flight for the same purpose. After being prevented by federal agents from boarding his flight, MUSSE lied to federal agents about the true nature of his travel.
As admitted by the defendant in his guilty plea, after their failed November 2014 attempt to fly overseas, ABDURAHMAN and co-conspirators MOHAMED FARAH, MUSSE, and AHMED met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, ABDURAHMAN willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico, and fly overseas to join ISIL using those false passports. On April 1, 2015, ABDURAHMAN provided a passport photo of himself to an individual he believed would be traveling with him. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). On April 3, 2015, ABDURAHMAN asked the CHS for the return of his passport photograph, fearing the number of co-conspirators involved in the plot to leave the United States for Syria increased the probability of getting caught by law enforcement. However, ABDURAHMAN admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, ABDURAHMAN was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria. ABDURAHMAN on April 3, 2015, further provided $100 in U.S. currency to the CHS as a down payment for co-defendant MOHAMED FARAH’s false passport which the defendant knew would be used by MOHAMED FARAH to attempt to travel to Syria to join ISIL.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant United States Attorneys Andrew R. Winter and John Docherty with assistance provided by the National Security Division's Counterterrorism Section.
Defendant Information:
ZACHARIA YUSUF ABDURAHMAN, 20
Columbia Heights, Minn.
Convicted:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
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Minnesota Man Pleads Guilty to Conspiracy to Provide Material Support to ISILRead the Press Release
Zacharia Yusuf Abdurahman, 20, of Columbia Heights, Minnesota, pleaded guilty to conspiring with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
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.
“Zacharia Yusuf Abdurahman conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we remain committed to stemming the flow of foreign fighters abroad and bringing to justice those who attempt to provide material support to terrorists.”
“Zacharia Abdurahman is the third co-conspirator to plead guilty and admit in detail his longstanding efforts to join ISIL,” said U.S. Attorney Luger. “Despite being stopped by federal agents on his first attempt, Abdurahman continued to seek ways to join this terrorist group. We hope that Abdurahman’s guilty plea today, and those of Hanad Musse and Abdullahi Yusuf before him, deter others from planning to join ISIL.”
“The FBI will continue to fight terrorism recruitment and material support with every available resource,” said Special Agent in Charge Thornton. “We stand alongside our Somali community partners in Minnesota to prevent terror groups from targeting their youth.”
Abdurahman was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. Abdurahman pleaded guilty today before Senior U.S. District Judge Michael Davis of the District of Minnesota.
As admitted by the defendant in his guilty plea, between March and June 2014, Abdurahman became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. Abdurahman joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement and the feasibility of using fraudulent travel documents to travel to Syria.
As admitted by the defendant in his guilty plea, by June 2014, Abdurahman knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul International Airport. Nevertheless, Abdurahman continued to make preparations to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, on Nov. 6, 2014, Abdurahman and co-conspirators Mohamed Farah, Hamza Ahmed and Hanad Musse purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, Abdurahman purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. After being prevented by federal agents from boarding his flight, Abdurahman lied to federal agents about the true nature of his travel.
As admitted by the defendant in his guilty plea, after their failed November 2014 attempt to fly overseas, Abdurahman and co-conspirators Farah, Musse and Ahmed met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, Abdurahman willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico, and fly overseas to join ISIL using those false passports. On April 1, 2015, Abdurahman provided a passport photo of himself to an individual he believed would be traveling with him. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). On April 3, 2015, Abdurahman asked the CHS for the return of his passport photograph, fearing the number of co-conspirators involved in the plot to leave the United States for Syria increased the probability of getting caught by law enforcement. However, Abdurahman admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, Abdurahman was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria. Abdurahman on April 3, 2015, further provided $100 in U.S. currency to the CHS as a down payment for co-defendant Farah’s false passport which the defendant knew would be used by Farah to attempt to travel to Syria to join ISIL.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and John Docherty with assistance provided by the National Security Division's Counterterrorism Section.
Twin Cities Landlords to Pay $130,000 to Resolve Alleged Section 8 Housing Assistance ViolationsRead the Press Release
United States Attorney Andrew M. Luger today announced a $130,000 settlement with RICHARD EDLICH, Cities Home Rentals, Inc., MDC 2000 Investments, Inc., and Rifive Investments, LLC (collectively the “Defendants”) to resolve allegations that the Defendants violated the False Claims Act by charging Section 8 tenants illegal side payments.
To qualify for federal subsidies, the Defendant landlords certified in their contracts with local housing authorities that they would not charge side payments to Section 8 tenants above the rental amount, which was determined by local housing authorities based in part on the tenants’ income. However, between August 2007 and July 2014, Defendants allegedly collected at least $60,000 in illegal side payments from sixteen Section 8 tenants.
The Department of Housing and Urban Development (HUD) provides federal funding for Section 8 (officially called the Housing Choice Voucher Program). Housing choice vouchers are administered by local housing authorities. The housing subsidy is paid to the landlord directly by the local housing authority on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. HUD prohibits Section 8 landlords from charging the tenant any additional payments to ensure that rent is affordable for tenants, and to prevent landlords from taking advantage of low-income tenants seeking affordable housing.
“The False Claims Act is an important tool to protect the integrity of the Housing Choice Voucher program, and to ensure that landlords receiving federal subsidies abide by their commitments to the federal government and to their tenants,” said Assistant U.S. Attorney Pamela Marentette, who represented the United States in this matter.
The settlement resolves allegations originally brought forward by one of the tenants, Meria Murray. Ms. Murray filed her suit under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and share in any recovery. According to Ms. Murray’s complaint, Defendants insisted that she pay over $5,000 in side payments between 2009 and 2011 for a property she rented in Minneapolis.
The settlement agreement requires the Defendants to pay $130,000 to the United States. Ms. Murray will receive $18,000 as her share of the recovery in this case.
The case was handled by the U.S. Attorney’s Office for the District of Minnesota, and investigated and supported by the U.S. Department of Housing and Urban Development-Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Meria T. Murray v. Richard Edlich, et. al. Case No.
13-sc-845 (JRT/JSM). The claims settled by this agreement are allegations only; there has been no determination of liability.
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Austin Couple Sentenced for Producing Sexually Explicit Videos and Images of Two GirlsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ANTHONY DOANE EDGE, 36, and DEBORAH SUSAN EDGE, 37, each of whom pleaded guilty to manufacturing child pornography. The defendants were sentenced yesterday before Senior U.S. District Judge Michael Davis in U.S. District Court in Minneapolis, Minn.
According to the defendants’ guilty pleas and documents filed in court, sometime between October 6, 2013, and March 27, 2014, A. EDGE and D. EDGE used a six-year-old minor for the purpose of making a sexually explicit video of the minor’s genitals and pubic area.
According to the defendants’ guilty pleas, A. EDGE made child pornography videos of two young girls in the bathroom of his home using pin-hole cameras disguised to look like household objects, one in the shape of a plastic coat hook and one in the shape of an ink pen. D. EDGE participated in making a child pornography video of one of the young girls. Moreover, more than one thousand suspected images of child pornography were recovered from computers seized at the Edge residence, including many depictions of the sexual exploitation of pre-pubescent children and infants.
This case is the result of an investigation by the Minnesota Bureau of Criminal Apprehension and the Austin Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Assistant U.S. Attorneys Katharine T. Buzicky and Carol M. Kayser prosecuted this case.
Defendant Information:
ANTHONY DOANE EDGE, 36
Austin, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 25 years in federal prison
DEBORAH SUSAN EDGE, 37
Austin, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 10 years in federal prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minnesota National Guardsman Pleads Guilty to Producing Child Pornography While Deployed to AfghanistanRead the Press Release
A Minnesota National Guardsman pleaded guilty today to inducing a 14-year-old girl to create and send to him sexually explicit photos over the Internet while he was deployed to Afghanistan.
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 made the announcement.
Andrew Schiller, 28, of Lakeville, Minnesota, pleaded guilty before U.S. District Judge Susan Richard Nelson of the District of Minnesota to one count of production of child pornography. The sentencing hearing will be scheduled at a later date.
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, including a 14-year-old and a 15-year-old, and that he attempted to convince the minors to send to him via the Internet sexually explicit videos or images of themselves.
This case is being investigated by the Army Criminal Investigative Division and the FBI, and anyone with additional information about this case should call the FBI Minneapolis Field Office at 763-569-8000. This case is being prosecuted by Trial Attorney Jeffrey H. Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Schiller Plea Agreement
Minnesota National Guardsman Pleads Guilty to Producing Child Pornography While Deployed to AfghanistanRead the Press Release
U.S. Attorney Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the guilty plea of a Minnesota National Guardsman to inducing a 14-year-old girl to create and send to him sexually explicit photos over the Internet while he was deployed to Afghanistan.
Andrew Schiller, 28, of Lakeville, Minnesota, pleaded guilty before U.S. District Judge Susan Richard Nelson of the District of Minnesota to one count of production of child pornography. The sentencing hearing will be scheduled at a later date.
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, including a 14-year-old and a 15-year-old, and that he attempted to convince the minors to send to him via the Internet sexually explicit videos or images of themselves.
This case is being investigated by the Army Criminal Investigative Division and the FBI, and anyone with additional information about this case should call the FBI Minneapolis Field Office at 763-569-8000. This case is being prosecuted by Trial Attorney Jeffrey H. Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600