District of Minnesota
Press releases recorded for this federal judicial district.
Bloomington Man Indicted for Using Stolen Identities in Conspiracy to Defraud the Irs Out of $1.8 MillionRead the Press Release
Ayotomide Ajifowobaje filed at least 200 fraudulent tax returns
United States Attorney Andrew M. Luger today announced the indictment of AYOTOMIDE AJIFOWOBAJE, 28, for using the stolen identities of hundreds of victims to file false tax returns throughout the United States. AJIFOWOBAJE is charged with conspiracy to defraud the United States, aggravated identity theft, and wire fraud. The defendant made an initial appearance following the filing of a criminal complaint on February 18, 2015, in United States District Court in St. Paul, Minn.
“This defendant is charged with stealing the identities of more than 200 victims to file false tax returns seeking nearly $2 million in fraudulent tax refunds,” said Assistant U.S. Attorney Michelle E. Jones. “Working with our colleagues at IRS-CI, we will vigorously investigate and prosecute those who victimize others and steal from the public fisc.”
“Today's indictment of Ayotomide Ajifowobaje 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 American taxpayers who steal their identities and file false tax returns. IRS Criminal Investigation is committed to bringing the perpetrators to justice.”
According to the indictment 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 electronically filed tax returns containing false information. For the purpose of collecting the refunds from the IRS, AJIFOWOBAJE purchased debit cards and activated them using the same stolen identities that he used to file false tax returns.
According to the indictment and documents filed in court, 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 WiFi.
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 Michelle E. Jones.
Defendant Information:
AYOTOMIDE AJIFOWOBAJE, 28
Bloomington, Minn.
Charges:
• Conspiracy to Defraud the United States, 1 count
• Wire Fraud, 18 counts
• Aggravated Identity Theft, 6 countsThe charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nanci Mae Dusso Pleads Guilty to Using Stolen Identities to Obtain Prescription OpiatesRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of NANCI MAE DUSSO, 50, who obtained Hydrocodone, Oxycodone, and other prescription drugs by using false names, dates of birth, and social security numbers. DUSSO pleaded guilty to obtaining a controlled substance by fraud and social security fraud. She entered her plea today before Judge Donovan W. Frank in United States District Court in St. Paul, Minn.
“Prescription drug abuse is both a crime and a serious health problem in Minnesota,” said U.S. Attorney Luger. “This defendant deceived doctors and nurses in multiple states in order to obtain these powerful opioids. Working closely with our law enforcement colleagues and health care organizations throughout the region, we are dedicated to preventing the kind of prescription drug diversion seen in this case.”
According to the defendant’s guilty plea and documents filed in court, between January 2013 and November 2013, DUSSO used at least 31 aliases to obtain or attempt to obtain prescription opiates from health care providers at Mayo Clinic satellite locations in Minnesota and Wisconsin. She commonly used out-of-state identities when visiting health care providers, often employed a story in which she complained of shoulder pain, and indicated that she was visiting a family member suffering from cancer. If DUSSO successfully convinced a health care provider to prescribe medication, a physical therapy or pain management appointment would also be arranged for her. However, the defendant did not attend these appointments.
According to DUSSO’s guilty plea and documents filed in court, DUSSO may have obtained more than 6,000 prescription opiates since as early as 2008, and visited more than 150 doctors in at least 11 different health care providers’ offices in Minnesota and Wisconsin. When defrauding these health care providers, DUSSO used stolen social security numbers of people both living and deceased and from numerous states. At different health care appointments, DUSSO listed her address as from Colorado, Utah, Oregon, and Kentucky.
According to the defendant’s guilty plea and documents filed in state court, a nurse practitioner at one Mayo Clinic satellite location became suspicious of DUSSO and reported her to Mayo Security. Mayo Clinic sent a system-wide notice to all employees alerting them of the alleged criminal activity. At least two Mayo Clinic satellite locations subsequently reported DUSSO for attempting to obtain prescription pain pills.
This case is the result of an investigation conducted by the Rochester Police Department, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, and Social Security Administration.
U.S. Attorney Luger thanked the Mayo Clinic, Olmsted Medical Center, Allina Health, HealthEast Care, and Park Nicollet for their assistance in the investigation.
Assistant U.S. Attorney Richard A. Newberry is prosecuting the case.
Defendant Information: NANCI MAE DUSSO, 50
Eyota, Minn.
Convicted:
• Obtaining a controlled substance by fraud, 1 count
• Social Security fraud, 1 countRed Lake Man Convicted After Jury Trial of Stabbing His Cousin on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of BENJAMIN ONE DEER HART, 28, a member of the Red Lake Band of Chippewa Indians, for stabbing one of his cousins and attempting to stab another cousin on the Red Lake Indian Reservation. On April 7, 2015, following a two-day trial, a federal jury deliberated for only 50 minutes before finding HART guilty of the entire indictment against him, which included two counts of assault with a dangerous weapon and one count of assault resulting in serious bodily injury. A sentencing date has not yet been set.
As proven at trial, on the morning of July 10, 2014, HART got into an argument with three of his cousins and his aunt at the defendant’s father’s house on the Red Lake Indian Reservation. Hart and his family members were arguing that HART should leave the house because he was not welcome there. During the argument, HART refused to leave and pulled a knife from a wooden knife block in the kitchen. While the cousins were trying to disarm him, HART attempted to stab one of his cousins. A second cousin intervened to protect the first and HART stabbed him in the stomach. The victim had to have surgery to repair the stab wound and was hospitalized for several days.
“Violence in Indian Country continues at a more aggressive pace than in other parts of Minnesota,” said Assistant U.S. Attorney Clifford B. Wardlaw. “Aggressively prosecuting these kinds of cases is an important tool for reducing such violence.”
Because the Red Lake Indian Reservation is an exclusive federal criminal 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.
This case resulted from an investigation conducted by the Federal Bureau of Investigation and the Red Lake Tribal Police Department.
The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw
Defendant Information:
BENJAMIN ONE DEER HART, 28
Red Lake, Minn.
Convicted:
• Assault with a Dangerous Weapon, 2 counts
• Assault Resulting in Serious Bodily Injury, 1 countMedtronic to Pay $4.41 Million to Resolve Allegations That It Unlawfully Sold Medical Devices Manufactured OverseasRead the Press Release
United States Attorney Andrew M. Luger today announced that Medtronic, plc and affiliated Medtronic companies, Medtronic, Inc., Medtronic USA, Inc., and Medtronic Sofamor Danek USA, Inc., have agreed to pay $4.41 million to the United States to resolve allegations that they violated the False Claims Act by making false statements to the United States Department of Veterans Affairs (VA) and the United States Department of Defense (DoD) regarding the country of origin of certain Medtronic products sold to the United States.
“Domestic manufacture is a required component of many military and Veterans Administration contracts,” said U.S. Attorney Luger. “Congress has mandated that the United States use its purchasing power to buy goods made in the United States or in designated countries. We take that mandate seriously and will not hesitate to take appropriate legal action to ensure compliance.”
“Today’s settlement demonstrates our commitment to ensure that our service members and our veterans receive medical products that are manufactured in the United States and other countries that trade fairly with us,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Justice Department will take action to hold medical device companies to the terms of their government contracts.”
According to the settlement agreement, between 2007 and 2014, Medtronic sold to the VA and DoD products it certified would be made in the United States or other designated countries. The Trade Agreements Act of 1979 (TAA), generally requires companies selling products to the United States to manufacture them in the United States or in a designated country. The United States alleged that Medtronic sold the United States products manufactured in China and Malaysia, prohibited countries under the TAA.
The specific Medtronic products at issue included anchoring sleeves sold with cardiac leads and used to secure the leads to patients, certain instruments and devices used in spine surgeries, and a handheld patient assistant used with a wireless cardiac device. The agreement covers the period from January 1, 2007 to December 31, 2013, and for one device (the handheld patient assistant), the period from January 1, 2014 to September 30, 2014.
The settlement resolves allegations originally brought in a lawsuit filed by three whistleblowers 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.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the U.S. Attorney’s Office for the District of Minnesota with assistance from the Justice Department’s Civil Division, the United States Department of Defense, Defense Logistics Agency and Defense Criminal Investigative Service, and the United States Department of Veterans Affairs, Office of General Counsel.
The underlying case is United States of America ex rel. Samuel Adam Cox, III, Meayna Phanthavong, and Sonia Adams v. Medtronic, Inc., Medtronic USA, Inc., and Medtronic Sofamor Danek USA, Inc., Civil No. 12-cv-2562 (PAM/JSM).Final Medtronic Agreement
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Minnesota Man Arrested and Charged for Producing Nude Photos of Seven-year-oldRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging SEAN PENONCELLO, 41, with production of child pornography.1 PENONCELLO was ordered detained pending trial after a hearing today before Magistrate Judge Brisbois in United States District Court in Duluth, Minn.
According to the complaint and documents filed in court, on April 3, 2014, in an unrelated investigation, thousands of images and hundreds of videos depicting child pornography were recovered from two computers at the home of an unrelated defendant in Dayton, Ohio. The images and videos were submitted to the National Center for Missing and Exploited Children (NCMEC) which, in a subsequent report, identified three nude images of an unidentified minor. The NCMEC assigned a name to this series of images for identification in future cases.
According to the complaint and documents filed in court, the photos from this named series were taken on or around September 15, 2012, at a residential address belonging to PENONCELLO. Several images were discovered on PENONCELLO’s iPhone, which included images and videos of a couch that appeared to be an exact match to the couch in the named series depicting the unidentified minor.
According to the complaint and documents filed in court, two minor children and a parent visited PENONCELLO several times at his home, located in a rural area near Cherry, Minn. On September 15, 2012, during a visit to PENONCELLO’S house, the two children were left alone at the house with PENONCELLO. One of those children is the subject of the named NCMEC series referenced above. PANONCELLO is alleged to have taken the sexually explicit photographs.
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.
This case is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
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 PENONCELLO, 41
Iron, Minn.
Charges:
• Production of child pornography, 1 countThe charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Minnesota National Guardsman Indicted for Producing Child Pornography While Deployed to AfghanistanRead 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 indictment of a Minnesota National Guardsman for inducing a 14 year-old girl to send him nude photos over the Internet while he was deployed to Afghanistan. ANDREW SCHILLER, 28, of Lakeville, Minnesota, is charged with one count of production of child pornography. SCHILLER was ordered detained pending trial today by U.S. Magistrate Judge Becky R. Thorson of the District of Minnesota.
According to the indictment and the government’s request for pretrial detention, between September 23, 2013, and January 12, 2014, SCHILLER contacted a 14 year-old girl from Minnesota via Skype. During repeated communications with the girl, SCHILLER allegedly requested that she send sexually explicit photos of herself to him. The victim allegedly sent several images in response to SCHILLER’s requests, including at least one sexually explicit image.
According to additional allegations in the government’s request for pretrial detention, SCHILLER used various social media platforms to communicate online with dozens of girls between the ages of 13 and 17. Among those platforms were MyLOL (“funinlife”), Skype (“thriller_a_schiller3”), Meet Me (“mnfuntimes”) and Facebook. SCHILLER also allegedly used KIK, an instant messaging application for mobile devices that allows users to share photographs and other content. After establishing online contact with the girls, SCHILLER allegedly directed the conversation to sexual topics and attempted to convince the girls to send sexually explicit videos or images of themselves to him. SCHILLER allegedly shared sexually explicit images of himself to encourage the girls to send photographs and videos of themselves, and he sometimes promised money or alcohol in exchange for sexually explicit images or live video chats.
Anyone with additional information about this case can call the FBI Minneapolis Field Office at 763-569-8000. 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 Army Criminal Investigative Division and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota and Trial Attorney Jeffrey H. Zeeman of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.
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:
ANDREW SCHILLER, 28
Lakeville, Minn.
Charges:
• Production of child pornography, 1 countThe charges contained in the indictment and the allegations contained in the government’s request for pretrial detention are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Twin Cities’ Restauranteurs Plead Guilty to Hiring Undocumented WorkersRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of MING GUO, 46, owner of two Twin Cities restaurants, both named Hibachi Grill and Supreme Buffet, and BIJIAN WENG, a/k/a “Wilson,” 28, manager of the restaurants, for employing unlawful aliens. GUO and WENG were charged on January 26, 2015, with one count each of Knowingly Hiring Ten or More Unlawful Aliens. GUO and WENG appeared earlier today in U.S. District Court in St. Paul, Minn.
“Undocumented workers are vulnerable to exploitation,” said Assistant U.S. Attorney Laura Provinzino. “Those who intentionally employ undocumented immigrants allow for these workers to be taken advantage of. Disrupting labor trafficking and punishing those who don’t follow the law is critical to ensure the safety of both legal and unauthorized workers.”
“The guilty pleas today should send a strong message to the Minnesota business community – companies that knowingly employ unauthorized aliens subject themselves to investigation and they will be punished accordingly.” said Special Agent in Charge J. Michael Netherland, of HSI St. Paul. “Our goal is to protect job opportunities for the nation’s legal workers and to level the playing field for those businesses that play by the rules.”
According to the defendants’ guilty plea and documents filed in court, from September 30, 2013 through September 30, 2014, GUO and WENG knowingly hired and employed at least 17 individuals who were not authorized to be employed or lawfully admitted for permanent residence in the United States. On September 30, 2014, HSI agents executed search warrants at the restaurants in Spring Lake Park and West St. Paul, Minnesota. They identified 17 undocumented workers working in the restaurants.
According to the defendants’ guilty plea and documents filed in court, GUO and WENG were aware that the employees were not authorized to work in the United States. Moreover, the defendants did not ask the employees to fill out paperwork, including I-9 Employment Eligibility Verification forms. GUO and WENG also failed to report the unauthorized workers to the Minnesota Department of Economic Development. The employees were paid in cash “off the books.”
This case is the result of an investigation conducted by Homeland Security Investigations.
Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino are prosecuting this case.
Defendant Information:
MING GUO, 46
North Miami Beach, Fla.
Convicted:
• Knowingly Hiring Ten or More Unlawful Aliens, 1 count
BIJIAN WENG, 28
Spring Lake Park, Minn.
Convicted:
• Knowingly Hiring Ten or More Unlawful Aliens, 1 countGreenbrier Village Settles Law Suit Alleging Unlawful Discrimination Against Families with Children in Violation of Fair Housing ActRead the Press Release
United States Attorney Andrew M. Luger today announced a settlement agreement between the United States, the Greenbrier Village Homeowner’s Association, Inc. (Greenbrier), and Gassen Company, Inc. (Gassen) and an individual Gassen employee to resolve a lawsuit filed on November 25, 2013. The lawsuit alleged that Greenbrier and Gassen unlawfully discriminated against residents with children by issuing and enforcing rules regarding the use of common areas at the Condominiums of Greenbrier Village. The settlement includes a commitment from Greenbrier to establish a new non-discrimination policy in accordance with the Fair Housing Act, pay a $10,000 penalty to the United States and pay $100,000 to six families that suffered as a result of the discrimination.
“Housing discrimination has no place in Minnesota,” said United States Attorney Andrew M. Luger. “This case reaffirms the long-held principle of our civil rights laws that families come in all shapes and sizes. Arbitrary rules that restrict the rights of children to enjoy the places where they live are not acceptable.”
“The Fair Housing Act prohibits housing providers from discriminating against families with children. This means more than just allowing those families to live at the property. It means giving these families fair access to the common areas and amenities,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.
“Families with children have the right to live in condos that don’t meet federal requirements to qualify as housing for older persons,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD is sending a clear message to homeowners associations and management companies that they must comply with the Fair Housing Act.”
According to the settlement agreement and documents filed in court, Greenbrier and Gassen allegedly engaged in a pattern of discrimination by creating and enforcing rules in a manner that prevented children from equal enjoyment of common areas and making statements that indicated a preference against families with children. The United States alleged that the defendants required children to be supervised at all times when in a common area, prohibited or unreasonably restricted children from using the common areas and selectively enforced the common area rules by issuing warnings and violation notices to residents with children, but not to adult residents engaging in the same activities.
According to the settlement agreement, at least six families suffered as a result of Greenbrier and Gassen’s alleged discrimination. Greenbrier agreed to a financial settlement with each of the families, totaling $100,000. Greenbrier will also adopt and implement a new anti-discrimination policy, its board members and staff will undergo training on the Fair Housing Act, with a specific emphasis on discrimination on the basis of familial status, and Greenbrier will pay a civil penalty to the United States.
Assistant U.S. Attorneys Bahram Samie and Ana Voss and attorneys from the Department of Justice Civil Rights Division handled this matter for the United States.
U.S. Attorney Luger thanked the Office of Fair Housing and Equal Opportunity at the United States Department of Housing and Urban Development for assisting in the investigation.Greenbrier Consent Order
Five Members of Synthetic Drug Distribution Conspiracy Indicted for Selling Millions of Dollars of Illegal CannabinoidsRead the Press Release
Drugs manufactured by owner of “Smokes 4 Less” smoke shopsUnited States Attorney Andrew M. Luger today announced an indictment charging OMAR ZIAD WAZWAZ, 33, and four others with conspiring to distribute synthetic cannabinoids. The defendants are charged with conspiracy to distribute and possession with intent to distribute controlled substance analogues, conspiracy to commit offenses against the United States, and conspiracy to commit money laundering. WAZWAZ is additionally charged with conspiracy to distribute controlled substances. The defendants are making initial appearances in U.S. District Court in St. Paul, Minn.
“Synthetic and designer drugs are both illegal and dangerous,” said U.S. Attorney Luger. “As alleged, these defendants created a criminal enterprise they believed would stay one step ahead of synthetic drug laws. It didn’t, and today they stand charged with conspiracy to sell illegal cannabinoids throughout Minnesota. The investigators who brought down this conspiracy are tireless, and this indictment should give pause to anyone who thinks they can get away with selling drugs by another name.”
According to the indictment and documents filed in court, beginning in approximately January 2010, OMAR ZIAD WAZWAZ owned and operated several smoke shops throughout Minnesota, including “Smokes 4 Less” in Mankato. WAZWAZ sold smokable synthetic cannabinoids (SSCs) in his smoke shops. Beginning in 2011, WAZWAZ began to manufacture his own brand of SSC called, “Kyptonite.” He branded the SSCs sold in his stores with such names as “Kush,” “Tiger’s Blood,” “Grape,” “Kronik,” “Man of Steel,” “Pine-apple,” “Juicy Fruit,” “Kottonmouf King,” “Tropic Thunder,” “Rain of Fire,” “O-Zone,” and others. Through the manufacture and sale of SSCs, WAZWAZ earned millions of dollars.
According to the indictment and documents filed in court, TALEB AWAD, VLADIMIR BRIK, STEVEN LYKE, and DANIEL LYKE conspired with WAZWAZ to manufacture and sell SSCs. The defendants manufactured SSCs by combining synthetic cannabinoids such as “AM-2201,” “UR-144,” and “XLR-11,” with leafy plant material like damiana or marshmallow leaves. The synthetic cannabinoids, which are often sold in powder form, were liquefied with the use of a solvent like acetone or grain alcohol so that the chemicals could be sprayed onto the leafy plant material. This manufacturing process allows users to ingest the drug in the same manner as one would ingest marijuana. WAZWAZ instructed employees of “Smoke 4 Less” to smoke SSCs and report back to him on the effects so that he could adjust the formula as needed.
According to the indictment and documents filed in court, BRIK, WAZWAZ and other co- conspirators also imported synthetic cannabinoids from China. On or about April 5, 2011, BRIK sent a wire transfer of $110,000 to a bank in the country of Liechtenstein to pay for an order of approximately 20 kilograms of synthetic cannabinoid that BRIK requested be sent to WAZWAZ’S store in Mankato, Minn.
The indictment is the result of an investigation conducted by the Minnesota River Valley Drug Task Force, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, U.S. Food and Drug Administration, and U.S. Customs and Border Protection.
This case is being prosecuted by Assistant U.S. Attorney Surya Saxena.
Defendant Information:
OMAR ZIAD WAZWAZ, 33
New Brighton, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Distribute Controlled Substances, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
VLADIMIR VLADIMIROVIC BRIK, 25
Duluth, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
TALEB JAMAL AWAD, 32
Unknown
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
STEVEN JAU LYKE, 25
Brookston, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
DANIEL LEE LYKE, 26
Brookston, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 countThe charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sex Offender Sentenced to 188 Months in Federal Prison for Producing Child PornographyRead the Press Release
Lance Plunske will begin serving his federal sentence after a state sentence of 144 months in prisonUnited States Attorney Andrew M. Luger today announced the sentencing of LANCE DEAN PLUNSKE, 57, to 188 months in federal prison for production of child pornography. PLUNSKE was indicted on July 14, 2014, and pleaded guilty on November 1, 2014, to one count of Production of Child Pornography. The defendant was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, between August 2008 and January 7, 2009, PLUNSKE knowingly persuaded and coerced a 15-year-old girl to pose nude while he took digital photos focused on the victim’s genitals, and produced visual depictions of sexually explicit conduct involving the victim.
PLUNSKE was convicted in 2009 in Traverse County, Minn., of First Degree Criminal Sexual Conduct. He was sentenced to serve 144 months in state prison. After PLUNSKE’S conviction in Traverse County, the United States Attorney’s Office investigated and prosecuted the defendant for the production of child pornography, which led to the conviction in this 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 United States Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov.
This case resulted from an investigation conducted by the Federal Bureau of Investigation and the Traverse County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
LANCE DEAN PLUNSKE, 57
Moose Lake, Minn.
Convicted:
• Production of Child Pornography, 1 count
Sentenced:
• 188 months in prison
• 15 years supervised releaseFelon Sentenced to Eight Years in Prison for Illegally Possessing HandgunRead the Press Release
Spack previously convicted of eight felonies in MinnesotaUnited States Attorney Andrew M. Luger today announced the sentencing of TOMMY MICHAEL SPACK, 32, to eight years in prison for illegally possessing a firearm after having been previously convicted of multiple felonies in both Ramsey and Washington Counties. SPACK was indicted on February 3, 2014. The defendant pleaded guilty on May 8, 2014, and was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“Reducing violent crime in Minnesota means keeping guns out of the hands of felons,” said U.S. Attorney Luger. “This defendant had eight felony convictions and knew he was forbidden from possessing firearms. He is now paying the price for repeatedly flaunting the law.”
According to the defendant’s guilty plea and documents filed in court, on December 14, 2013, SPACK was driving a car when St. Paul Police Officers pulled him over at the intersection of Van Dyke Street and Stillwater Avenue East, in St. Paul, Minn. Officers searched the vehicle and recovered a Charter Arms Police Undercover .38 special revolver and a small bag containing methamphetamine.
According to his guilty plea and documents filed in court, SPACK later admitted that both the gun and drugs were his. Based on his criminal history, including convictions for eight felonies prior to December 14, 2013, it was illegal for SPACK to possess a firearm. SPACK’S criminal history includes convictions in Ramsey County for terroristic threats, receiving stolen property, attempted burglary, theft, and possession of illegal drugs. SPACK was previously convicted in Washington County for burglary and receiving stolen property.
This case is the result of an investigation conducted by the St. Paul Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Surya Saxena prosecuted the case.
Defendant Information:
TOMMY MICHAEL SPACK, 32
St. Paul, Minn.
Convicted:
• Felon in Possession of a Firearm, 1 count
Sentenced:
• Eight years in prison
• Three years supervised releaseCottage Grove Woman Convicted by Jury of Producing Pornographic Images of A ChildRead the Press Release
Roxanne Merrell promised $100,000 to send obscene photos of young girlUnited States Attorney Andrew M. Luger today announced the conviction of ROXANNE MERRELL, 35, for making pornographic images of a pre-pubescent girl. MERRELL was convicted by a jury of the entire indictment against her after a three-day trial before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn. A sentencing date has not yet been set.
As proven at trial, Travis Guenthner of Washburn, North Dakota, who was convicted in May 2014 in the District of North Dakota of multiple counts of production of child pornography and other child exploitation offenses, knew ROXANNE MERRELL. Guenthner offered MERRELL $100,000 to take pornographic photos of a young girl, which MERRELL took while the child was sleeping. Other pictures of the child’s naked buttocks and clothed pubic area were also discovered on Guenthner’s computer. The photographs, some of which included an image of an adult hand, were later discovered on Guenthner’s computer. The adult hand appearing in the photos belonged to MERRELL.
“HSI is committed to aggressively pursuing those individuals who trade in child pornography,” said HSI St. Paul Special Agent in Charge J. Michael Netherland. "It is our job to do everything that we can to protect the most vulnerable members of our society.”
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 United States Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov
This case is the result of an investigation conducted by Homeland Security Investigations (HSI) and the Cottage Grove Police Department.
Assistant U.S. Attorneys Katharine T. Buzicky and Sarah E. Hudleston are prosecuting the case.
Defendant Information:
ROXANNE MERRELL, 35
Cottage Grove, Minn.
Convicted:
• Production of Child Pornography, 2 countsTwo Men Plead Guilty to Tax Fraud Conspiracy Involving More Than 300 Stolen IdentitiesRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of RICHARD J. SCHMIDT, 42, and MATTHEW KLEMMER, 47, for conspiring to prepare and file false individual income tax returns in order to obtain fraudulent income tax refunds. Both defendants were indicted on October 15, 2014. SCHMIDT pleaded guilty on December 17, 2014 before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn. On March 9, 2015, KLEMMER also entered his guilty plea before Judge Doty.
“Filing false tax returns and using stolen identities is a serious crime that hurts innocent taxpayers,” stated Special Agent in Charge Shea Jones of the IRS Criminal Investigation St. Paul Field Office. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
According to the defendants’ guilty pleas and documents filed in court, from approximately January 2011 to April 2011, SCHMIDT and KLEMMER received refunds from income tax returns reporting false or inflated income, false employment, and other false items. Stolen personal identifying information, including names and social security numbers, was used to create the fraudulent tax returns, which included false or inflated withholding information. As part of the conspiracy, the defendants requested the tax refunds be deposited onto debit cards, allowing them immediate access to the cash. The defendants filed more than 30 fraudulent tax returns and received more than $100,000 in refunds.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division.
The case is being prosecuted by Assistant U.S. Attorney Robert Lewis.
Defendant Information:
RICHARD J. SCHMIDT, 42
Landfall, MN
Convicted:
• Conspiracy to Defraud the United States, 1 count
MATTHEW KLEMMER, 47
St. Paul, Minn.
Convicted:
• Conspiracy to Defraud the United States, 1 countFormer Minneapolis School Cook Sentenced to 30 Months in Prison for Acting as Straw Purchaser for Convicted FelonRead the Press Release
Angela Carter Purchased Two Handguns and Knowingly Lied on ATF FormsUnited States Attorney Andrew M. Luger today announced the sentencing of ANGELA CARTER, 33, to 30 months in federal prison for acting as a straw purchaser of two handguns. CARTER was indicted on May 12, 2014, and pleaded guilty on July 28, 2014, to one count of Causing a False Statement to be Maintained in the Records of a Federal Firearms Licensee. The defendant was sentenced on March 10, 2015, before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea, documents filed in court and statements made on the record in court, on January 21, 2014, Carter bought a Ruger 9mm semi-automatic pistol for $355 from Bill’s Gun Shop in Robbinsdale, Minn. On February 7, 2014, Carter again went to Bill’s Gun Shop and bought a Glock .40 caliber semi-automatic pistol, a 15 round magazine, and 2 boxes of ammunition for $740. When purchasing both handguns, Carter listed an incorrect address on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473. Carter had moved from that address several months earlier.
According to the defendant’s guilty plea, documents filed in court and statements made on the record in court, both guns, which were fully loaded, were seized on February 10, 2014, during a traffic stop of Carter’s car. At the time, police also seized a Glock 9mm semi-automatic pistol with a fully loaded 33 road magazine. Carter purchased both guns to give to a co-defendant, Keniko Bland, who was prohibited by law from possessing firearms because he had pending charges in Hennepin County for Terroristic Threats. Bland was previously sentenced on December 18, 2014, to 57 months in custody.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Carol Kayser.
Defendant Information:
ANGELA CARTER, 33
Minneapolis, Minn.
Convicted:
• Causing a False Statement to be Maintained in the Records of a Federal Firearms Licensee, 1 count
Sentenced:
• 30 months in prison
• 3 years supervised releaseSuspended Attorney Sentenced to Five Years in Prison for Using Law Firm to Launder Drug MoneyRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of ROBERT DAVID BOEDIGHEIMER, 52, to five years in prison. BOEDIGHEIMER was convicted by a jury on June 17, 2014, after a 12-day trial, of using his law firm to launder drug money, lying to investigators, and encouraging his brother-in-law to also lie to federal investigators. The defendant was sentenced on March 9, 2015, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“Lawyers are officers of the court,” said Assistant United States Attorney Steven L. Schleicher. “This sentence is a step toward restoring trust in the legal profession by assuring the public that nobody gets special treatment because of their profession. Those who are sworn to uphold the law will be held accountable if they violate it. This case is the result of the hard work and dedication of the agents who worked tirelessly to see justice done.”
As proven at trial, BOEDIGHEIMER had his own personal injury practice since 1995. The law firm and the defendant began to experience financial problems in 2006. The defendant fell behind on several loans, bills, and taxes, and also had difficulty meeting payroll obligations for his law firm. In addition to the financial problems at the firm, the defendant spent lavishly on himself, frequent gambling and expensive travel. He also lived in a high-end home near a golf course in Stillwater, Minn.
As proven at trial, BOEDIGHEIMER’S brother-in-law, Brandon Lusk, was a distributor of high- end marijuana in and around Rochester, Minn. The defendant approached Lusk for a cash loan so that he could maintain his lifestyle. Lusk agreed to provide many loans to BOEDIGHEIMER, on the condition that the defendant repay the loans, plus interest, in checks issued from BOEDIGHEIMER’S law firm. Ultimately, BOEDIGHEIMER created a “no-show” job for Lusk at the law firm, which paid Lusk $48,000 per year. The defendant provided a box of business cards to Lusk listing him as an “investigator” for the firm.
As proven at trial, Lusk’s no-show job was entirely paid for through drug proceeds that Lusk funneled to BOEDIGHEIMER, and which the defendant laundered through his law firm. Between March 26, 2010 and January 28, 2011, nine payroll cash advances were provided to the defendant by Lusk, ranging from $5,000 to $10,000 each, and totaling approximately $55,000. In exchange, Lusk received payroll checks from the law firm. In March 2011, Lusk lost his source of income as a marijuana distributor when Richard Kay, who was Lusk’s supplier, discovered that he was under investigation. Lusk and a marijuana distribution associate approached the defendant for help in obtaining legal representation. Lusk was eventually interviewed by the US Attorney’s office, before which BOEDIGHEIMER advised Lusk not to tell investigators about the money laundering arrangement between the two of them. Lusk then withheld information from investigators about his employment and the disposition of the drug proceeds. Lusk was ultimately sentenced to 30 months imprisonment for distribution of marijuana and money laundering.
This case is the result of an investigation by the Internal Revenue Service – Criminal Investigation Division, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, Southeast Minnesota Narcotics & Gang Task Force, and Wabasha County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Steven L. Schleicher.
Defendant Information:
ROBERT DAVID BOEDIGHEIMER, 52
Stillwater, Minn.
Convicted:
• Money Laundering Conspiracy, 1 count
• Money Laundering, 1 count
• False Statement, 1 count
Sentenced:
• Five years in prison
• Three years supervised releaseMembers of the Mustafa Organization Plead Guilty to Conspiracy and Related Charges in Connection with the Theft of $20 Million Worth of Cell Phones and Electronic DevicesRead the Press Release
Eight defendants pleaded guilty this weekUnited States Attorney Andrew M. Luger today announced that 20 defendants charged in a conspiracy to traffic stolen cellular phones and other electronic devices have pleaded guilty. The Mustafa Organization, a Twin Cities-based criminal organization, was indicted for trafficking stolen and fraudulently obtained mobile telephones and tablets. Twenty of the 21 defendants have now entered guilty pleas before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn. The final two of those defendants, MILES and AL HUSSAINAWEE pleaded guilty late yesterday afternoon. A sentencing date has not been set for MILES and AL HUSSAINAWEE.
According to the defendants’ guilty pleas and documents filed in court, from at least 2006 through 2014, members of the Mustafa family and their associates used stolen identity information and other criminal means to obtain at least $20 million worth of cellular telephones and other mobile devices for the purpose of trafficking them throughout the United States and overseas. The six Mustafa brothers owned and operated 13 mobile device stores in the Twin Cities metropolitan area, which were used to buy illegally obtained mobile devices. Members of the Mustafa Organization paid runners to steal mobile devices or obtain them fraudulently using stolen identification documents. They re-sold the stolen phones and tablets for substantial profits that were then distributed among themselves and used to pay for rent, utilities, payroll and other expenses to keep their stores in business and promote the unlawful activity.
According to the defendants’ guilty pleas and documents filed in court, members of the Mustafa Organization also falsified loan applications and provided false documentation to get loans for vehicles that they used to transport stolen devices and the proceeds of their criminal activity. The members of the Mustafa Organization also made fraudulent credit card transactions to steal from credit card processing companies and used the proceeds to buy more cell phones, and to pay operating expenses for the wireless stores and for personal use.
Assistant U.S. Attorneys Steven Schleicher, John Marti, and Karen Schommer are handling the prosecution of this case.
This case is the result of an investigation conducted by the St. Paul Police Department, United States Secret Service, University of Minnesota Police Department, Minnesota Department of Public Safety and Bureau of Criminal Apprehension, Minnesota Financial Crimes Task Force, United States Postal Inspection Service, Internal Revenue Service Criminal Investigations, Homeland Security Investigations, Edina Police Department, Minneapolis Police Department, Plymouth Police Department, Federal Bureau of Investigation, and the United States Marshal’s Service.
Defendant Information:
JAMAL TALAL MUSTAFA, a/k/a “Jimmy,” 42
Apple Valley, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Conspiracy to Defraud the Government With Respect to Claims, 1 count
NASER MOHAMAD MUSTAFA, a/k/a “Nasty Nas,” 24
Rosemount, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
EDWAN T MUSTAFA, a/k/a “Eddy,” 40
Apple Valley, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
NIZER M MUSTAFA, a/k/a “Shaggy,” a/k/a “Mike,” 36
Savage, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Conspiracy to Defraud the Government With Respect to Claims, 1 count
BILAL MUHAMMED MUSTAFA, a/k/a “Billy,” 30
Minneapolis, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
TALAL M MUSTAFA, a/k/a “Tommy,” 43
Burnsville, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods and Access Device Fraud, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
MOISES NAVARRO CAZALES, 22
Bloomington, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• False, Fictitious, or Fraudulent Claims, 1 count
AHMED RD SUNOQROT, a/k/a “Abu Hasan,” 59
St. Paul, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
CEDRIC CHAPPELL, 44
Minneapolis, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
DEANTRE RICKEY-RENE SQUALLS, 24
Brooklyn Center, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
• Felon in Possession of a Firearm, 2 counts
BLANYON TOE DAVIES, 21
Unknown
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
VICTOR TOMBEKAI DOE, 24
Unknown
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
YOLANDA COOMBS, 28
Oakdale, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
CASWANA MILES, 26
Unknown
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
TIARA LIGON
St. Paul, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
MARQUIS TERELL MAGGIESFIELD, a/k/a “Kenny,” 28
Unknown
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
MARCUS PHILLIP COLEMAN, 23
St. Paul, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
ROBERT RICHARD COLEMAN, 30
St. Paul, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
DANIELLE YVONNE COLEMAN, 29
St. Paul, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
ABBAS ATEAIA AL HUSSAINAWEE, 41
Minneapolis, Minn.
Convicted:
• Conspiracy to Engage in Interstate Transportation of Stolen Goods and Device Fraud, 1 count
• Possession with Intent to Distribute 50 Grams or More of a Mixture or Substance Containing Methamphetamine, 1 countSeven Members of Minneapolis-based Gang Charged in 31-count Indictment with Conspiracy to Distribute Crack Cocaine Throughout MinnesotaRead the Press Release
United States Attorney Andrew M. Luger, Minneapolis Police Chief Janeé Harteau and FBI Special Agent in Charge Richard Thornton today announced a federal indictment charging seven members of the Taliban gang and the Young N Thuggin (YNT) gang with conspiring to distribute crack cocaine in the Twin Cities and Greater Minnesota.1 The defendants include both leaders and other members of the two gangs. They are charged with conspiracy to distribute cocaine base (crack) and distribution of crack.
“Late last year we indicted more than a dozen members of two violent Minneapolis gangs, the 19-Dipset and Stick Up Boys,” said U.S. Attorney Luger. “We are today announcing a new indictment of their main rivals. Leaders and members of the Taliban and YNT are charged with using violence and intimidation to control a drug distribution operation stretching from Minneapolis to Fargo. Working closely with our law enforcement partners, we are continuing to investigate and stop drug dealers and the violence that too often accompanies their illegal activity.”
Minneapolis Police Chief Janeé Harteau said: “Today we see the results of a long term investigation into a violent street gang that has plagued the streets of Minneapolis for too long. As a result of our collaborative partnerships with our state and federal partners, several members of that gang are facing federal indictments for their long history of criminal activity. Today we say thank you to all of our partners for helping to make Minneapolis a safer city.”
"The FBI remains committed to combating gang violence and in keeping our streets safe,” said FBI Special Agent in Charge Richard Thornton. “Keeping citizens free from the specter of gang violence is a priority for the FBI and its local partners which comprise the Minnesota Safe Streets Task Force. The FBI and its partners in the Minnesota Safe Streets Task Force will continue to collaborate in targeting the worst offenders when it comes to gang violence in Minnesota."
Minnesota Bureau of Criminal Apprehension Superintendent Wade Setter said: “The BCA is committed to supporting multi-agency operations such as this. Today's events come as a result of our successful collaboration.”
According to the indictment and documents filed in court, between January and December 2014, the defendants were organizers and members of two closely associated street gangs, the Taliban and the YNT. Some of the indicted co-conspirators had more influence in the gang, based on their seniority and criminal activity. The 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 the indictment and documents filed in court, the Taliban and YNT are organized for the purpose of making money by trafficking in illegal drugs, among other criminal activity. Members of the Taliban and YNT frequently travel to St. Cloud and Duluth, Minnesota, and to Fargo, North Dakota, to sell crack. Crack that the Taliban and 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 the indictment and documents filed in court, some of the members of the gang 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.
The indictment is 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 is being prosecuted by Assistant U.S. Attorney David Steinkamp.
Defendant Information:
LOUIS LEE FRASIER BANKS, a/k/a “G.I.,” 25
Anoka County Jail
Charges:
• Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 10 counts
• Possession with Intent to Distribute Cocaine Base, 1 count
• Possession of a Firearm During and in Relation to a Drug Trafficking Crime, 1 count
• Felon in Possession of a Firearm, 1 count
CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 26
Unknown
Charges:
• Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts
• Felon in Possession of a Firearm, 2 counts
• Distribution of Heroin, 1 count
DEJUAN PIERRE DARKYSE WASHINGTON, a/k/a “DJ,” 23
Unknown
Charges:
• Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 3 counts
• Felon in Possession of a Firearm, 1 count
TERRELL VONSHAY ROBERSON, a/k/a “Get Right,” a/k/a “Slim,” 18
Unknown
Charges:
• Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 5 counts
• Distribution of Heroin, 1 count
LAQUEDRICK LEMEL AS-SIDIQ, a/k/a “Quady,” a/k/a “C,” 25
Unknown
Charges:
• Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts
DONTE TRAMAYNE SMITH, a/k/a “Five,” 25
Unknown
Charges:
• Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts
CORTEZ DAVON BLAKEMORE, a/k/a “Tez,” 24
Minneapolis, Minn.
Charges:
• Felon in Possession of a Firearm, 1 countTaliban-YNT Indictment
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Loretto Man Sentenced to 22 Months in Prison for Lying About Employees’ WagesRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of JEFFERY JOHN PLZAK, 52, to 22 months in federal prison for felony false statements in connection with prevailing wage violations. PLZAK pleaded guilty on July 8, 2014, to one count of False Statements and was sentenced on March 3, 2015, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
In addition to the 22-month prison sentence, PLZAK was ordered to pay over $240,000 in restitution, pay a fine, and was placed on one-year of supervised release to follow the prison term. In sentencing PLZAK, Judge Schiltz emphasized the impact of PLZAK’S crime on his employees and on PLZAK’S competitors and their employees, as well as the need to deter similar offenses by PLZAK and others in the future.
According to the defendant's guilty plea and documents filed in court, PLZAK and his spouse run Honda Electric, Inc., a company based in Loretto, Minnesota. Honda Electric bids on construction projects, including highway and road projects, that are federally and state funded. Many of the projects PLZAK bid on required that Honda Electric pay its electricians and other laborers the prevailing wage rate.
On numerous occasions, PLZAK won bids based in part on the representation that Honda Electric employees working on each project would receive the prevailing wage. Those projects required periodic submission by Honda Electric of a certified payroll report. In those reports, PLZAK knew Honda Electric, at his direction, was representing to the United States Department of Transportation – Federal Highway Administration and to the Minnesota Department of Transportation that Honda Electric’s employees were being paid the required prevailing wage.
In fact, as PLZAK knew, in many instances employees were being paid less than half of the prevailing wage rate. For example, PLZAK admitted that in a certified payroll report dated September 24, 2010, Honda Electric stated it was paying prevailing wage on a federally funded project in Ramsey County, Minnesota, when, in fact, he knew the employees were receiving far less than prevailing wage. In total, PLZAK admitted that over a series of projects between 2010 and 2013, Honda Electric underpaid its employees over $241,000.
This case is the result of an investigation by the Minnesota Department of Transportation’s Labor Compliance Unit and the Federal Bureau of Investigation.
Assistant U.S. Attorney David M. Genrich prosecuted the case.
Defendant Information:
JEFFERY JOHN PLZAK, 52
Loretto, Minn.
Convicted:
• False Statements, 1 count
Sentenced:
• 22 months in prison
• $241,000 in restitution
• 1 year supervised releaseSt. Paul Woman Pleads Guilty to Filing over $200,000 in False Tax ReturnsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of CINDY LEE LINEBAUGH, 48, to one count of False, Fictitious and Fraudulent Claims. LINEBAUGH was indicted on September 24, 2014, and pleaded guilty on February 24, 2015, before U.S. District Judge Susan Richard Nelson in St. Paul, Minn.
According to the defendant’s guilty plea, in February 2010, LINEBAUGH began a tax fraud scheme in which she knowingly prepared and filed false tax returns on behalf of herself and others. LINEBAUGH used fraudulent W-2s which falsely claimed that the individuals were employed by and earned wages from employers such as Northwest Airlines and the City of St. Paul.
According to court documents, during calendar years 2010 and 2011, LINEBAUGH prepared and filed approximately 73 false returns for tax years 2009 and 2010 using online tax- preparation software. The refunds were loaded onto a debit card and sent by the IRS directly to the individuals. LINEBAUGH charged individuals anywhere from $100 to $300 for her tax- preparation services. The total amount of the tax loss for all returns was approximately $287,561.
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 John E. Kokkinen.
Defendant Information:
CINDY LEE LINEBAUGH, 48
St. Paul, Minn.
Convicted:
• False, Fictitious and Fraudulent Claims, 1 countSeventh Defendant Pleads Guilty in Mortgage Fraud Conspiracy That Resulted in at Least $3.9 Million in FraudRead the Press Release
At least 35 Properties throughout Minnesota went into Foreclosure as a Result of SchemeThe United States Attorney’s Office for the District of Minnesota today announced the guilty plea of JUSTIN JOSEPH CHRISTENSON, 35, who admitted conspiring with THOMAS ROSENSTEEL, ROBERT SCOTT “ROD” ASLESEN, and at least four others to defraud mortgage lenders by falsifying loan applications and related documents. CHRISTENSON is the seventh co-conspirator to plead guilty to participating in the scheme. The defendant pleaded guilty today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn. Last week, ROSENSTEEL and ASLESEN also entered guilty pleas before Judge Doty.
“This was a classic case of criminals perpetrating sham real estate scams to steal money,” said Minnesota Department of Commerce Commissioner Mike Rothman. “Commerce investigators are working closely with our colleagues from the U.S. Attorney's Office, FBI, and the U.S. Postal Inspection Service to stop financial fraud in our state.”
According to the defendants’ guilty pleas and documents filed in court, ROSENSTEEL founded, owned, and was the President of Split Rock Realty, a Twin Cities-based real estate company. In 2006, ROSENSTEEL hired CHRISTENSON to be his Director of Developments. From the fall of 2006 through the fall of 2007, ROSENSTEEL, a licensed real estate salesperson, and CHRISTENSON participated in numerous real estate transactions on behalf of Split Rock to conceal payments from mortgage loan proceeds and divert them to buyers of real properties and other individuals through the use of fraudulent underwriting and closing documentation. Moreover, ROSENSTEEL and others fraudulently concealed that the buyers were given money for down payments and passed these funds off as the buyers’ own funds, thereby misleading mortgage loan lenders to believe that the buyers had a financial stake in the purchased residences and thus incentive to pay the loans.
“This scheme was pervasive and calculated,” said Assistant U.S. Attorney William J. Otteson. “Although the defendants used a variety of complex terms and methods to justify their conduct, what they were convicted of is quite simple: they were lying to mortgage lenders to get money.”
According to the defendants’ guilty pleas and documents filed in court, ROSENSTEEL was aware that fraudulent loan application documentation was provided to potential lenders for purposes of loan underwriting. Among other things, the documentation falsely overstated the true purchase prices to be paid for the properties, falsely overstated the incomes of buyers/borrowers, and concealed the fact that payments were going to be made from the loan proceeds to the buyer and other individuals, including the defendant. CHRISTENSON and others, working with ROSENSTEEL’s knowledge and approval, worked to improperly influence appraisers to ensure that property appraisals were sufficiently inflated to facilitate the cash-back scheme. This included manipulating MLS listings and creating comparable sales for use in appraisals that were themselves fraudulent.
According to the defendants’ guilty pleas and documents filed in court, other individuals, including ASLESEN, a licensed closing agent who owned Split Rock Title (not affiliated with Split Rock Realty), facilitated the fraudulent scheme by making concealed payments to the buyers and other third parties, including through a company ASLESEN created, Eastwind Construction Consulting, whose only real purpose was to facilitate the distribution of the fraudulent payments. ROSENSTEEL, ASLESEN, and CHRISTENSON admitted participating in at least 35 fraudulent real estate transactions as part of the scheme, resulting in nearly all of the properties going into foreclosure. The actual loss to the mortgage holders was more than $2.5 million.
The three recent guilty pleas bring to seven the number of individuals who have pleaded guilty since 2011 in connection with this scheme. The others include: DALE RUSSELL WURZINGER, a licensed real estate agent working for Split Rock Realty; AMRI ELSAFY, owner of The Mortgage Shop, a real estate loan brokerage company; JAMES BRYAN CROOK, owner of Compass Title Company; and GERALD EDWIN CARLSON, a loan officer employed by Cascade Mortgage.
This case resulted from an investigation conducted by the Minnesota Department of Commerce, Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case was prosecuted by Assistant U.S. Attorneys William J. Otteson and Robert M. Lewis.
Defendant Information:
JUSTIN JOSEPH CHRISTENSON, 35
Forest Lake, Minn.
Convicted:
• Conspiracy to commit wire fraud, 1 count
THOMAS EDWARD ROSENSTEEL, II, 42
Excelsior, Minn.
Convicted:
• Conspiracy to commit wire fraud, 1 count
DALE RUSSELL WURZINGER, 58
Burnsville, Minn.
Convicted:
• Conspiracy to commit wire fraud, 1 count
ROBERT SCOTT ASLESEN, a/k/a “ROD” ASLESEN, 66
Little Canada, Minn.
Convicted:
• Conspiracy to commit wire fraud, 1 count
AMRI ELSAFY, 43
Golden Valley, Minn.
Convicted:
• Conspiracy to commit wire fraud, 1 count
JAMES BRYAN CROOK, 59
Staten Island, N.Y.
Convicted:
• Conspiracy to commit wire fraud, 1 count
GERALD EDWIN CARLSON, 67
Kennedy, Minn.
Convicted:
• Conspiracy to commit wire fraud, 1 countTimothy Caskey Sentenced to 25 Years in Prison for Kidnapping A Woman and Fleeing to MexicoRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of TIMOTHY GLEN CASKEY, 43, to 300 months in federal prison for assaulting a woman, kidnapping her, and robbing a bank in Kansas while in-transit to Mexico with the kidnapped victim. CASKEY was charged on September 21, 2011, with kidnapping and interstate domestic violence, and on October 19, 2011 with bank robbery. CASKEY pleaded guilty on February 6, 2014, to kidnapping and bank robbery. The defendant was sentenced on February 20, 2015, before Judge John R. Tunheim in U.S. District Court in Duluth, Minn.
“Timothy Caskey kidnapped the victim and took her to Mexico, where he repeatedly threatened her, and physically and sexually assaulted her,” said Assistant U.S. Attorney Michelle E. Jones. “The defendant funded his violent escapade by robbing a bank in Kansas and stealing a truck in Texas. His history of violent criminal behavior, combined with his guilty plea for these crimes, properly resulted in his 25-year prison sentence. I am grateful to the police departments in Virginia, Minnesota and New Braunfels, Texas, as well as the FBI and BCA for conducting an excellent investigation in this case.”
According to the defendant’s guilty plea and documents filed in court, on July 14, 2011, CASKEY forcibly kidnapped the victim from a street in Virginia, Minnesota, while she was walking with her 9-year-old son, and three others. CASKEY forced the victim into his car, attacked her 9-year-old son and another person, and fled with the victim. CASKEY attacked her repeatedly with the handle of a screwdriver before pulling off the highway and sexually assaulting the victim.
According to the defendant’s guilty plea and documents filed in court, on July 15, 2011, CASKEY robbed the Great Southern Bank in Ottawa, Kansas. Before entering the bank, CASKEY used shoelaces to tie up the kidnapping victim and left her in his vehicle. The defendant later stole a pickup truck from a used car dealership in New Braunfels, Texas. Thereafter, CASKEY crossed the border into Mexico, where he continued to physically and sexually assault the kidnapping victim. He threatened to kill her if she tried to escape, and also withheld food and water from the victim. CASKEY was apprehended on August 8, 2011 in Mexico.
This case resulted from an investigation conducted by the Federal Bureau of Investigation, the Minnesota Bureau of Criminal Apprehension, Virginia Police Department (Minnesota), and the New Braunfels Police Department (Texas).
This case was prosecuted by Assistant U.S. Attorneys Michelle E. Jones and Nate Petterson.
Defendant Information:
TIMOTHY GLEN CASKEY, 43
Virginia, Minn.
Convicted:
• Kidnapping, 1 count
• Bank Robbery, 1 count
Sentenced:
• 300 months in prison
• 5 years of supervised releaseNew Ulm Felon Sentenced to 25 Years in Prison for Illegal Possession of Firearms and AmmunitionRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of BUCK OTTO WHITE a/k/a “TIMOTHY JOSEPH HOFFMAN,” 50, to 300 months in federal prison for illegally possessing stolen firearms and ammunition. WHITE was charged on April 7, 2014, with two counts of possession of firearms and ammunition by a convicted felon and two counts of possession of stolen firearms and ammunition. On April 25, 2014, following a three-day trial, a federal jury found WHITE guilty on all counts. The defendant was sentenced on February 13, 2015, before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
“Buck White is a career felon,” said Assistant U.S. Attorney Bradley Endicott. “As a result of his prior convictions, Mr. White cannot legally possess firearms. He is now facing 25 years in prison for his repeated illegal activity. This conviction would not have been possible without the investigative efforts of the ATF and our local partners in the New Ulm Police Department and Nicollet County Sheriff’s Office.”
As proven at trial, WHITE illegally possessed numerous firearms at a storage unit in Courtland, Minn., which included two rifles and two shotguns, as well as 140 rounds of ammunition. All of the firearms and ammunition were stolen during the course of a residential burglary in a nearby town. WHITE also illegally had a rifle and various stolen ammunition at his home in New Ulm, Minn.
During the pendency of his court proceedings, WHITE was released to a treatment facility and ordered to wear a location monitoring bracelet. The defendant on July 22, 2013, removed the GPS monitoring bracelet, fled the facility, and remained a fugitive until the U.S. Marshals arrested him on January 15, 2014. During the arrest, WHITE attempted to flee, leading officers on a high-speed car chase in a densely populated area of Minneapolis, Minn.
This case resulted from an investigation conducted by the New Ulm Police Department, the Nicollet County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorneys Bradley M. Endicott and John R. Marti.
Defendant Information:
BUCK OTTO WHITE, a/k/a “TIMOTHY JOSEPH HOFFMAN,” 50
New Ulm, Minn.
Convicted:
• Armed Career Criminal in Possession of Firearm, 1 count
• Armed Career Criminal in Possession of Ammunition, 1 count
• Possession of Stolen Firearms, 1 count
• Possession of Stolen Ammunition, 1 count
Sentenced:
• 300 months in prison
• 5 years of supervised releaseHAMZA NAJ AHMED INDICTED FOR CONSPIRING TO PROVIDE MATERIAL SUPPORT TO THE ISLAMIC STATE OF IRAQ AND THE LEVANT Ahmed Stopped in New York While Attempting to Fly Overseas to Join Terror Organization Defendant Also Charged with Lying to Federal AgentsRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General for National Security John P. Carlin today announced the indictment of HAMZA NAJ AHMED, 19, for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL). AHMED is also charged with attempting to provide material support to ISIL, and for making a false statement in a terrorism investigation.1 AHMED was previously charged by criminal complaint for lying to FBI agents. The defendant was detained on February 5, 2015, after making an initial appearance before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Hamza Ahmed is at least the fourth person from the Twin Cities charged as a result of an ongoing investigation into individuals who have traveled or are attempting to travel to Syria in order to join a foreign terrorist organization,” said U.S. Attorney Luger. “Since 2007, dozens of people from the Twin Cities have traveled or attempted to travel overseas in support of terror. While my office will continue to prosecute those who attempt to provide material support to ISIL or any other terrorist organization, we remain committed to working with dedicated community members to bring this cycle to an end.”
According to the indictment and documents filed in court, AHMED and three companions, M.F., H.M.M, and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 8, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. M.F., H.M.M., and Z.A. were each prevented from boarding their flights. AHMED successfully boarded, but was escorted from the aircraft by U.S. Customs and Border Protection agents before it left the boarding gate.
According to the indictment and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED again lied to agents.
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 Winter and John Docherty, and Attorney Andrew Sigler of the Justice Department’s National Security Division.
Defendant Information:
HAMZA NAJ AHMED, 19
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Making a False Statement in a Terrorism Investigation, 1 countThe charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Appleton Felon Sentenced to More Than 16 Years in Prison for Possession of Body Armor and MethamphetamineRead the Press Release
Defendant arrested after leading Stevens County Sheriff’s Office on high-speed chaseUnited States Attorney Andrew M. Luger today announced the sentencing of JOSHUA M. PROUDFOOT, 36, to 202 months in federal prison for possession of methamphetamine and illegally possessing body armor. PROUDFOOT pleaded guilty on September 4, 2014, to Possession with Intent to Distribute Methamphetamine and to being a Felon in Possession of Body Armor. PROUDFOOT was sentenced on February 6, 2015, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, on May 7, 2014, PROUDFOOT led police officers on a high-speed car chase lasting nearly two miles before the defendant lost control of his vehicle and crashed into a field. PROUDFOOT threw at least 14 bags of methamphetamine, totaling more than 20 grams, out of the driver’s side window during the chase. PROUDFOOT, who also had several yellow pills and a live round of .38-caliber ammunition, was arrested a short distance from the crash site after attempting to flee on foot.
According to the defendant’s guilty plea and documents filed in court, PROUDFOOT also possessed two backpacks containing a loaded .38-caliber revolver, additional ammunition and several empty small plastic baggies. In a car he owned, the defendant also had a Point Blank brand bulletproof vest, a loaded .40-caliber handgun, and a tin containing drug paraphernalia and several unidentified pills.
Stevens County Sheriff Jason Dingman said, “This was a significant case for Stevens County. I appreciate the partnership between the federal, state, and local agencies involved in this investigation.”
“The court imposed a just and appropriate sentence based on this defendant’s repeated violent behavior,” said Assistant U.S. Attorney Benjamin Bejar. “The case agent and investigators were instrumental in obtaining justice in this case.”
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Criminal Apprehension, Stevens County Sheriff’s Office, and the Morris Police Department.
Assistant United States Attorney Benjamin Bejar prosecuted this case.
Defendant Information:
JOSHUA M. PROUDFOOT, 36
Appleton, Minn.
Convicted:
• Possession With Intent to Distribute Methamphetamine, 1 count
• Felon in Possession of Body Armor, 1 count
Sentenced:
• 202 months in federal prison
• 8 years supervised releaseOwner of Food Product and Supply Business Sentenced for Failing to Pay More Than $200,000 in Employment TaxesRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of PEGGY EISCHENS, 45, to one year and one day in federal prison for failing to pay more than $200,000 in employment taxes. EISCHENS pleaded guilty on October 14, 2014, to one count of Willful Failure to Pay Over Taxes. She was sentenced on February 4, 2015, before Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, from 2002 through 2011, EISCHENS was a co-owner and employee of R.D. Hanson Associates, Inc. (“RDHA”), which conducted business under the names Kernel Pops of Minnesota and Kernel Concession Supply. During her employment, EISCHENS was responsible for handling payroll and accounting for RDHA, which included the preparation of employee paychecks and the preparation and filing of Form 941 quarterly tax returns with the IRS.
According to her guilty plea and documents filed in court, from 2003 through December 2011, EISCHENS willfully failed to pay over to the IRS federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, meaning Social Security and Medicare taxes, deducted and collected from the wages of RDHA employees. In total, EISCHENS failed to pay over approximately $201,285 of withheld federal income taxes, withheld FICA taxes, and the employer’s share of FICA taxes.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigations.
Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.
Defendant Information:
PEGGY EISCHENS, 45
LeSueur, Minn.
Convicted:
• Willful Failure to Pay Over Taxes, 1 count
Sentenced:
• 1 year and 1 day in prison
• 3 years supervised releaseOwner and Director of Eden Prairie Daycare Center Pleads Guilty to Theft of Public MoneyRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of KHADRA ABDISAFAD HIRSI, 47, for stealing money in the form of child care subsidies from the U.S. Department of Health and Human Services and the State of Minnesota. The defendant pleaded guilty on February 4, 2015, before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn., to one count of Theft of Public Money.
According to her guilty plea and documents filed in court, HIRSI was the director and co-owner of Ace DayCare Center, Inc. (Ace DayCare) located in Eden Prairie, Minn. Many of the families for whom Ace DayCare provided childcare services participated in the Child Care Assistance Program, which provides low-income families with childcare assistance. HIRSI was responsible for submitting truthful and accurate billing forms for childcare services provided by Ace DayCare to families participating in the Child Care Assistance Program. Under the Child Care Assistance Program, child-daycare providers submit billing forms for reimbursement directly to the counties where qualifying families reside.
According to her guilty plea and documents filed in court, in February and March of 2013, HIRSI knowingly submitted Child Care Assistance Program billing forms that falsely inflated the number of children who received childcare services provided by Ace DayCare. As a result, HIRSI fraudulently obtained approximately $20,000 from the U.S. Department of Health and Human Services and the State of Minnesota for childcare services that were not actually provided.
"With our partners, we are aggressively targeting child care providers who try to collect payments from public programs for services they don't provide," said Minnesota Department of Human Services Inspector General Jerry Kerber, whose office oversees fraud prevention and detection efforts for state public assistance programs. "The seriousness of this crime is underscored by the fact that more than 6,100 Minnesota families are waiting to receive child care assistance."
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General.
U.S. Attorney Luger thanked the Minnesota Department of Human Services for their assistance.
Assistant U.S. Attorney John E. Kokkinen is prosecuting the case.
Defendant Information:
KHADRA ABDISAFAD HIRSI, 47
Eden Prairie, Minn.
Convicted:
• Theft of Public Money, 1 countInvestment Advisor Sentenced to 42 Months in Prison for Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger and Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division St. Paul Field Office Shea Jones today announced the sentence of JOEL WILLIAM CARLSON, 43, of Vadnais Heights, MN, to 42 months in prison. CARLSON pleaded guilty on September 10, 2014, to two counts of tax evasion for tax years 2010 and 2011.
According to his guilty plea and documents filed in court, CARLSON acted as an investment advisor during 2010 and 2011. He deposited client investments, as well as additional funds solicited from his father, into a Trust Financial Group (“TFG”) account, that CARLSON treated as his personal bank account. Instead of investing the funds, CARLSON spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to intentionally misappropriating both client assets and his father’s assets, totaling more than $1.5 million, CARLSON failed to file personal income tax returns for tax years 2010 and 2011.
According to his guilty plea, CARLSON also failed to timely file personal income tax returns for tax years 2005 through 2007. As a result, the IRS filed a federal tax lien against CARLSON for approximately $495,000.
In addition to paying restitution of approximately $1.9 million to the investment fraud victims and his father, CARLSON will also pay approximately $1.2 million in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Tracy L. Perzel prosecuted this case.
This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Division.
Defendant Information:
JOEL WILLIAM CARLSON
Vadnais Heights, MN
Convicted:
• Attempt to Evade and Defeat Tax, 2 counts
Sentenced:
• 42 months in prison
• Ordered to pay approximately $3.1 million in restitutionMinneapolis Man Charged with Lying to Federal Agents During Terrorism InvestigationRead the Press Release
Defendant Intercepted in New York City While Attempting to Fly Overseas Possibly to Join Terror Organization
United States Attorney Andrew M. Luger today announced a criminal complaint charging HAMZA AHMED, 19, with lying to agents from the Federal Bureau of Investigation (FBI). AHMED is charged with making a false statement in a terrorism investigation.1 The defendant made an initial appearance on February 5, 2015, before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Any person has a right to remain silent, or to consult an attorney when speaking with federal agents or prosecutors,” said U.S. Attorney Luger. “However, this Office will continue to prosecute those who lie to federal law enforcement officers and impede criminal investigations into suspected terrorist activity.”
According to the complaint and documents filed in court, AHMED and three companions, H.M.M, M.F., and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 9, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. Z.A., M.F., and H.M.M. were each prevented from boarding their flights. AHMED successfully boarded, but was removed from the aircraft before it left the boarding gate.
According to the complaint and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED lied to agents.
According to the criminal complaint and documents filed in court, AHMED told FBI agents that he traveled to New York alone and intended to vacation in Madrid for four days by himself. However, the itinerary he booked would have allowed AHMED only one full day in Madrid. Moreover, AHMED did not book a hotel room in Madrid, and he did not know anyone in Madrid. AHMED again denied that he was traveling with M.F.
According to the criminal complaint and documents filed in court, AHMED told agents that he only “vaguely” knew H.A.M., an individual from Minnesota known to have traveled to Syria in 2014. However, a review of AHMED’s publicly available Twitter account shows that a lengthy series of messages between AHMED and H.A.M. took place between November 2013 and March 2014.
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 Winter and John Docherty.
Defendant Information:
HAMZA AHMED, 19
Minneapolis, Minn.
Charge:
• False Statement in a Terrorism Investigation, 1 countHamza Ahmed Complaint
The charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Michael Ronald Garant Charged with Illegally Acquiring Firearms on Behalf of Another PersonRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging MICHAEL RONALD GARANT, 42, for acting as a straw purchaser of three firearms for Ray Kmetz. GARANT is charged by complaint with making a false statement to acquire firearms on behalf of another person. GARANT will appear today before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Background checks are only as good as the accuracy of the information collected,” said U.S. Attorney Luger. “Honestly answering questions about the intended recipient of a firearm is an important component of responsible gun ownership and key to public safety, which is why it is a crime to act as a straw purchaser. This defendant is charged with committing that very crime – buying guns for another person and lying about it.”
According to the criminal complaint and documents filed in court, on August 21, 2014, Ray Kmetz was the highest bidder for three shotguns in an online auction, which were actually purchased by GARANT on August 23, 2014, at Full Metal Gun Shop in Princeton, Minn. The defendant informed the owner of the gun shop that he used the alias “Ray Kmetz” during the online auction to hide his true identity. GARANT produced a driver’s license to the store owner to verify that he was, in fact, GARANT.
According to the criminal complaint and documents filed in court, a National Instant Criminal Background Check was performed on GARANT, and was returned “clear.” One of the forms completed by GARANT as part of the background check contained the following question:
Are you the actual transferee/buyer of the firearm(s) listed on this form? Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual buyer, the dealer cannot transfer the firearm(s) to you.
GARANT responded “yes” to this question by checking the corresponding box. GARANT paid $659.29 in cash for the three shotguns, one of which was a Stoeger Model 2000 12-gauge shotgun bearing serial number 915191.
According to the criminal complaint and documents filed in court, on January 26, 2015, Ray Kmetz entered New Hope City Hall, in New Hope, Minn., during a meeting of the city council. He was armed with the same Stoeger Model 2000 12-gauge shotgun that GARANT had purchased. Kmetz fired one round from the shotgun in the direction of the council chambers. New Hope Police Officers responded with fire and killed Kmetz.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hennepin County Sheriff’s Office.
Assistant U.S. Attorneys Nate Petterson and Benjamin Bejar are prosecuting this case.
Defendant Information:
MICHAEL RONALD GARANT, 42
Golden Valley, Minn.
Charges:
• Making a false statement to acquire firearms on behalf of another person, 1 countGarant Complaint & Affidavit
The charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Stearns County Man Charged in Murder-for-hire PlotRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging ROBERT JAMES SCHUELLER, 29, in a murder-for-hire plot targeting the fiancé of his former paramour. SCHUELLER is charged with the use of interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. §1958(a).1 The defendant appeared this afternoon before Magistrate Judge Tony Leung in U.S. District Court in St. Paul, Minnesota.
“This defendant is charged with orchestrating a murder-for-hire plot,” said Assistant U.S. Attorney Julie Allyn. “Fortunately for the intended victim in this case, the contract killing was never carried out. The FBI and Stearns County Sheriff’s Office pursued diligently this investigation, and we are grateful for their successful efforts to keep Minnesotans safe from violence.”
According to the complaint and documents filed in court, ROBERT SCHUELLER is the President of Nomad Pipeline Services (Nomad). Between approximately May 2013 and August 2013, SCHUELLER, who is married, was engaged in an extramarital affair with R.T., then an employee of Nomad. Approximately three months after R.T. ended the relationship with SCHUELLER, SCHUELLER learned that R.T. was in a relationship with C.A. SCHUELLER subsequently tried to reignite the relationship with R.T., but was rebuffed.
According to the complaint and documents filed in court, on February 6, 2014, SCHUELLER contacted another employee of Nomad, W.E. SCHUELLER knew W.E. had several prior felony convictions and had served time in prison. He asked if W.E. maintained contact with anyone from prison. When W.E. answered in the affirmative, SCHUELLER told W.E that he wanted to hire someone to murder C.A. On February 13, 2014, W.E. pretended to have identified a former prison associate who may be willing to murder C.A. for SCHUELLER.
According to the complaint and documents filed in court, sometime in March 2014, SCHUELLER sent a package to W.E. containing $10,000 in cash and two of his own business cards, on which he had written C.A.’s name and information about where C.A. worked. On May 2, 2014, W.E. called SCHUELLER and told him that he was unable to find someone to carry out the murder. After the phone call, SCHUELLER texted W.E., “burn those business cards.” W.E. subsequently returned the $10,000 to SCHUELLER.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant United States Attorneys Julie E. Allyn and Steven L. Schleicher.
Defendant Information:
ROBERT JAMES SCHUELLER, 29
Farming Township, Minn.
Charge:
• Use of interstate commerce facilities in the commission of murder-for-hire, 1 countFormer Mayor of Stillwater Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of KENNETH FRANK HARYCKI, 51, to conspiracy to defraud the United States by preparing and filing tax forms that he knew to be fraudulent. HARYCKI pleaded guilty today before U.S. District Judge Ann D. Montgomery in Minneapolis.
“As a former mayor, Mr. Harycki understands, better than most, the magnitude and impact of the fraud he helped to perpetrate,” said U.S. Attorney Luger. “By his guilty plea, Mr. Harycki has taken responsibility for his actions, but that does not excuse his criminal acts. This defendant not only violated his accounting license by covering up a tax fraud, he eroded the trust of the residents of Stillwater, who elected him to a position of high public office.”
According to his guilty plea, during the course of the conspiracy, HARYCKI owned and operated businesses that provided bookkeeping, payroll, and accounting services, including tax- related services, to clients. In 2007, the defendant began providing services to two separately charged co-conspirators. Within the first few payroll cycles for Model Health Care (Model), a company controlled by the two separately charged co-conspirators, the defendant concluded that while payroll taxes were being withheld from the wages of employees, those taxes were not being paid over to the government. The defendant learned that these co-conspirators had directed that the withheld taxes not be paid to the government and, instead, the taxes would be used for other purposes, including compensating the co-conspirators and their family members and funding other businesses operated by the co-conspirators.
According to the defendant’s guilty plea, on February 18, 2010, HARYCKI created the entity MKH Holdings, Inc., to assume control over bank accounts used to fund businesses operated by the co-conspirators. The entity was used to cause funds falsely reported on income tax returns to be paid to the co-conspirators and others. During the course of the conspiracy, HARYCKI also incorporated other businesses, obtained employer identification numbers, paid for personal expenses, filed false tax returns, and opened and used numerous bank accounts for the benefit of the separately charged co-conspirators in order to avoid payment of taxes.
The tax loss from the defendant’s relevant conduct is between $1 million and $2.5 million.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and Department of Health and Human Services Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Robert Lewis.
Defendant Information:
KENNETH FRANK HARYCKI, 51
Stillwater, Minn.
Convicted:
• Conspiracy to Defraud the United States, 1 countWoman Charged for Scamming $2 Million Life Insurance Payout Based on Fake DeathRead the Press Release
United States Attorney Andrew M. Luger today announced a complaint charging IRINA VOROTINOV, 48, with defrauding Mutual of Omaha Insurance Company for more than $2 million in life insurance proceeds by falsely claiming that her former husband died. Her son, ALKON VOROTINOV, 25, is charged with actively concealing the fraudulent scheme. IRINA was charged by criminal complaint with mail fraud, and ALKON was charged with having knowledge of the actual commission of a felony and concealing the crime. Both defendants appeared today before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.
Assistant United States Attorney David J. MacLaughlin, who is prosecuting the case, said: “Fraud against insurance companies drives up the premiums paid by legitimate insureds. Those who cheat insurance companies should expect to be investigated, prosecuted, and held accountable for the economic harm inflicted on those who deal honestly with the insurance industry.”
According to the criminal complaint and documents filed in court, on April 22, 2010, Igor Vorotinov purchased a life insurance policy on his own life from Mutual of Omaha, and listed IRINA VOROTINOV and ALKON VOROTINOV as the beneficiaries. On October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as Igor Vorotinov.
According to the criminal complaint and documents filed in court, IRINA VOROTINOV traveled to Moldova to identify the body. Along with Igor’s cousin and a representative from the U.S. Embassy, IRINA went to the morgue where she identified the body as Igor. At IRINA’S request, the body was cremated on October 20, 2011, in Odessa, Ukraine. IRINA returned to Minnesota on October 29, 2011, and filed a death claim with Mutual of Omaha on November 7, 2011. Mutual of Omaha paid IRINA $2,048,414.09 in the form of a check sent on March 23, 2012, by U.S. mail to IRINA’S home in Maple Grove, Minnesota.
According to the criminal complaint and documents filed in court, IRINA and ALKON VOROTINOV opened an account at a local branch of U.S. Bank and deposited the check, which they both knew to be the life insurance policy proceeds resulting from the death of Igor Vorotinov. Between March 29, 2012 and January 2015, IRINA and ALKON together transferred more than $1.5 million of the life insurance proceeds to accounts located in Switzerland and Moldova.
According to the criminal complaint and documents filed in court, on November 27, 2013, ALKON was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of Igor Vorotinov taken on April 19, 2013 and on May 12, 2013, in which Igor is alive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
IRINA VOROTINOV, 50
Plymouth, Minn.
Charge:
• Mail Fraud, 1 count
ALKON VOROTINOV, 25
Plymouth, Minn.
Charge:
• Misprision of a Felony, 1 countVorotinov Complaint
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Jury Finds Red Lake Man Guilty of Distributing Child PornographyRead the Press Release
James Needham possessed more than 1,300 images of child sexual abuse
United States Attorney Andrew M. Luger today announced the conviction of JAMES PATRICK NEEDHAM, 53, of Red Lake, Minn., for distributing and possessing images and videos containing child pornography. On May 7, 2013, NEEDHAM was indicted on one count of Distribution of Child Pornography and one count of Possession of Child Pornography. On January 9, 2015, following a three-day trial, a federal jury found NEEDHAM guilty on both counts.
“Protecting children from the physical and psychological trauma associated with the distribution of images and videos portraying their sexual abuse is a law enforcement priority,” said Assistant U.S. Attorney Laura M. Provinzino. “This verdict demonstrates that those who possess and distribute child pornography will be prosecuted to the fullest extent of the law. I thank the jury members for their service in this very difficult case.”
As proven at trial, NEEDHAM possessed images and videos containing visual depictions of minors engaged in sexually explicit conduct. On August 4, 2010, NEEDHAM distributed several images of similar material. According to documents filed in court, the illegal images were reported to the National Center for Missing and Exploited Children (NCMEC) through its “Cyber Tipline.” The NCMEC notified the FBI which, in turn, tracked the username and IP address associated with the illegal images to NEEDHAM’S Red Lake residence. The Red Lake Police Department discovered more than 1,300 images and 100 videos containing child pornography on a computer at NEEDHAM’S home.
U.S. District Judge John R. Tunheim will sentence NEEDHAM 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 in response to “cyber tips” reported to the National Center for Missing and Exploited Children.
Assistant U.S. Attorneys Laura M. Provinzino and Katharine T. Buzicky are prosecuting this case.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorney offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Defendant Information:
JAMES PATRICK NEEDHAM, 53
Red Lake, Minn.
Convicted:
• Distribution of Child Pornography, 1 count
• Possession of Child Pornography, 1 countUnited States Attorney Andrew M. Luger’s Statement Regarding Twin Cities Particpation in White House Summit on Countering Violent ExtremismRead the Press Release
United States Attorney Andrew M. Luger said: “I look forward to participating in the White House Summit on February 18 with Twin Cities law enforcement and community leaders and stakeholders, my colleagues from the U.S. Attorney’s Offices in Boston and Los Angeles, and CVE leaders from around the world. Since I began working with the Somali Minnesotan community last spring to design a plan that will address the root causes of terrorist recruiting, I have come to learn that we share a deep commitment to see our community prosper in peace and security.”
It is expected that the Minneapolis-St. Paul delegation to the White House Summit will include approximately 15 law enforcement and Somali community leaders.Eden Prairie Man Pleads Guilty to Illegally Buying and Selling Smokeless Tobacco ProductsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of DMITRI SOUDAKOV, 41, for the illegal purchase and transport of smokeless tobacco. The defendant pleaded guilty on January 5, 2015, before Judge David S. Doty in U.S. District Court in Minneapolis, Minn., to one count of Shipment, Transport, Receipt, Possession, Sale, Distribution and Purchase of Contraband Smokeless Tobacco.
Bureau of Alcohol, Tobacco, Firearms and Explosives-St. Paul Field Division Special Agent in Charge James C. Modzelewski stated, “The trafficking in contraband tobacco is all about the money and the substantial profits that are obtained. With our outstanding relationship with the Minnesota Department of Revenue, we are accomplishing what we are mandated to do, prosecuting these offenders and taking away their profits.”
“The transportation and sale of unstamped tobacco products is illegal and unfair to distributors and businesses who comply with the state’s tobacco laws,” said Revenue Commissioner Cynthia Bauerly. “We appreciate the collaboration with our federal partners and we take our role of enforcing these tax laws very seriously.”
According to his guilty plea and documents filed in court, on June 27, 2011, SOUDAKOV purchased at least 938 containers of contraband smokeless tobacco from a wholesaler in Chicago, Ill. The defendant purchased the smokeless tobacco free of any state taxes and intended to resell it without paying any state taxes in Illinois, Minnesota or elsewhere. SOUDAKOV knew he was not a licensed distributor, manufacturer or carrier and, therefore, was unauthorized to purchase, sell, distribute, possess or receive smokeless tobacco products.
Between April 2011 and July 2011, SOUDAKOV purchased and transported at least 4,760 containers of smokeless tobacco from Illinois to Minnesota, where he resold the products without paying any state taxes. On June 28, 2011, while transporting the containers of smokeless tobacco from the Chicago area to Minnesota, SOUDAKOV’S vehicle was stopped by law enforcement officers who discovered the containers of smokeless tobacco stashed in the rear of the vehicle.
According to his guilty plea and documents filed in court, SOUDAKOV also purchased and resold additional tobacco products without paying Minnesota state taxes. SOUDAKOV purposely evaded the payment of state taxes and is ordered to pay a total of $47,753.77 in restitution to the state of Minnesota.
This case is the result of a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minnesota Department of Revenue.
Assistant U.S. Attorney Benjamin Langner is prosecuting the case.
Defendant Information:
DMITRI SOUDAKOV, 41
Eden Prairie, Minn.
Convicted:
• Shipment, Transport, Receipt, Possession, Sale, Distribution and Purchase of Contraband Smokeless Tobacco, 1 countTwo Defendants Charged for Their Role in an Attempted Coup in the GambiaRead the Press Release
Defendants Charged with Conspiracy to Violate the Neutrality Act and Conspiracy to Possess Firearms in Furtherance of a Crime of Violence
United States Attorney General Eric Holder, United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for National Security John P. Carlin, and Federal Bureau of Investigation Special Agent in Charge of the Minneapolis Division Richard T. Thornton today announced a criminal complaint charging CHERNO NJIE, 57, and PAPA FAAL, 46, for their role in a recent attempted coup in The Gambia. Both men are in custody and are expected to have initial appearances in court today. NJIE will appear in United States District Court in Baltimore, Maryland. FAAL will appear in U.S. District Court in Minneapolis, Minnesota. Both defendants are charged with conspiring to violate the Neutrality Act by making an expedition against a friendly nation from the United States and conspiring to possess firearms in furtherance of a crime of violence. 1
On December 30, 2014, there was an unsuccessful attempted coup against the government of The Gambia. The Gambia is a country in West Africa bordered by Senegal and the Atlantic Ocean.
“These defendants stand accused of conspiring to carry out the violent overthrow of a foreign government, in violation of U.S. law,” said Attorney General Eric Holder. “The United States strongly condemns such conspiracies. With these serious charges, the United States is committed to holding them fully responsible for their actions.”
United States Attorney for the District of Minnesota Andrew M. Luger said: “This case would not be possible without the dedication of prosecutors around the country and FBI agents around the world, who worked non-stop to uncover evidence of the plot to overthrow the Gambian government. My office will continue to work cooperatively with our law enforcement partners here and abroad to bring these defendants to justice.”
FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton said: “This investigation reinforces the continued success of the FBI's Joint Terrorism Task Force in Minneapolis. The FBI, along with its many task force partners, remains committed to disrupting and preventing political violence no matter what form it takes.”
According to the criminal complaint and documents filed in court, in December 2014, CHERNO NJIE and PAPA FAAL separately traveled from the United States to The Gambia for the purpose of overthrowing the Gambian government. FAAL is a dual U.S./Gambian citizen and a resident of Minnesota. NJIE, a U.S. citizen of Gambian descent and a resident of Texas, is a businessman who served as financier and leader of the conspiracy. NJIE and his co-conspirators expected that NJIE would have served as the interim leader of the Gambia had the coup attempt succeeded.
According to the criminal complaint, approximately 10-12 members of the conspiracy entered The Gambia to carry out the coup attempt, with the expectation that others in the country would join and assist them. Prior to departing for The Gambia, between August and October 2014, FAAL and other co-conspirators purchased multiple firearms, including M4 semi-automatic rifles, and shipped them to The Gambia for use in the coup attempt. Members of the conspiracy also acquired night-vision goggles, body armor, ammunition, black military style uniform pants, boots, and other personal equipment.
According to the criminal complaint, on December 30, 2014, a number of the co-conspirators, including FAAL, met in the woods near the State House in Banjul, which is the home of the Gambian President, and split into two assault teams. NJIE was not present at that meeting, instead waiting in a safe place until the assault teams took control of the facility. However, when one of the assault teams approached the State House and fired a shot into the air, the team began taking heavy fire from the guard towers. Although numerous conspirators on the assault teams were killed or injured during the failed attempt to take control of the government building, FAAL was able to flee the scene and he ultimately returned to the U.S. NJIE also returned to the U.S. Both men have since been arrested.
The criminal complaint (including the affidavit) is attached as a pdf document.
This investigation is being led by the Federal Bureau of Investigation and its partners on Joint Terrorism Task Forces in multiple field offices. U.S. Attorney Luger commended the many agents, analysts, and prosecutors in multiple offices who are responsible for this ongoing investigation.
Assistant U.S. Attorney Charles Kovats of the United States Attorney’s Office for the District of Minnesota is prosecuting this case, with assistance from Richard Scott, a Deputy Chief in the Counterespionage Section of the Justice Department's National Security Division. A number of other U.S. Attorney’s Offices, including those in the District of Maryland and the Western District of Texas provided critical support during the investigation.
Defendant Information:
CHERNO NJIE, 57
Austin, Tex.
Charges:
• Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 count
PAPA FAAL, 46
Brooklyn Center, Minn.
Charges:
• Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 countComplaint and Affidavit
1 The charges contained in the criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
St. Paul Felon Sentenced for Possessing A .357-revolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 29-year-old St. Paul felon was sentenced for possessing a .357-caliber revolver. United States District Court Judge Susan Richard Nelson sentenced Richard Alonzo Woods to 77 months in prison on one count of being a felon in possession of a firearm. Woods was indicted on May 15, 2012, and pleaded guilty on July 27, 2012.
In his plea agreement, Woods admitted that on November 16, 2011, he possessed the Smith & Wesson revolver. Because he is a felon, Woods is prohibited under federal law from possessing a firearm at any time. His prior convictions – all in Ramsey County-- include third-degree sale of controlled substances (2002 and 2003), check forgery (2003), fifth-degree possession of controlled substances (2006), and possession of a firearm by an ineligible person (2006).
This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Surya Saxena.Minneapolis Man Charged with Providing Stolen Cell Phones to Organized Crime RingRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging ABBAS ATEIA AL HUSSAINAWEE, 40, for acting as a runner for defendants separately charged with conspiring to engage in the interstate transportation of stolen goods, namely cell phones and other electronic devices. AL HUSSAINAWEE was charged on December 19, 2014, in U.S. District Court in St. Paul, Minn., with conspiracy to engage in interstate transportation of stolen goods. In a separate complaint filed today, AL HUSSAINAWEE was charged with possession with intent to distribute methamphetamine.
“This defendant is charged with being one of the many runners employed by the Mustafa Organization,” said U.S. Attorney Luger. “In August, my office charged 20 defendants with conspiracy to steal and sell mobile devices on the underground market. Our investigation continues to uncover others who fueled the theft of cell phones in Minnesota and elsewhere.”
According to the criminal complaint and documents filed in court, from at least 2006 through 2014, the separately charged Mustafa Organization and their criminal associates illegally obtained cellular telephones and other mobile devices for the purpose of trafficking them throughout the United States and internationally. The Mustafas paid runners who stole mobile devices or obtained them fraudulently by other means. AL HUSSAINAWEE is an alleged runner for the Mustafa Organization.
According to the criminal complaint and documents filed in court, AL HUSSAINAWEE regularly traveled to other states to steal phones, including to Michigan, Illinois, and Missouri. To avoid detection while burglarizing cell phone stores, AL HUSSAINAWEE broke into businesses adjacent to cell phone stores, and then gained entry to the cell phone store by breaking through the wall. He specifically targeted strip malls with vacant adjacent store space.
According to the criminal complaint and documents filed in court, on November 27, 2012, AL HUSSAINAWEE burglarized a Best Buy in Maplewood, Minn. The defendant broke into an adjacent business and broke through the wall to gain entry to the Best Buy. He stole 48 cellular phones, 20 iPads and five tablet computers. On December 12, 2014, AL HUSSAINAWEE burglarized a Verizon Store in Buffalo, Minn. He gained entry to the store by prying open the back door of a vacant business and then breaking through the sheetrock to gain access to the adjacent Verizon Store. The defendant stole $33,015 in cell phones.
According to the criminal complaint and documents filed in court, on July 14, 2014, the defendant stole 44 cell phones and iPads from a Verizon store in Waconia, Minn. The total value of the stolen merchandise was $22,279.97. On March 9, 2014, the defendant broke through the sheetrock of a Verizon store in Menomonie, Wis., and stole $32,000 worth of cell phones and iPads. AL HUSSAINAWEE was responsible for burglary or attempted burglary in at least 22 cell phone stores. The Mustafas paid AL HUSSAINAWEE in cash for the stolen merchandise.
According to a separate criminal complaint filed today, when agents executed a search warrant at AL HUSSAINAWEE’S home in Minneapolis, they discovered a backpack containing approximately 268 grams of methamphetamine.
This case is the result of an investigation conducted by the St. Paul Police Department, United States Secret Service, and Minnesota Bureau of Criminal Apprehension, under the auspices of the Minnesota Financial Crimes Task Force.
Assistant U.S. Attorneys Steven Schleicher and John Marti are prosecuting this case.
Defendant Information:
ABBAS ATEIA AL HUSSAINAWEE, 40
Minneapolis, Minn.
Charges:
• Conspiracy to engage in interstate transportation of stolen property, 1 count
• Possession with intent to distribute methamphetamine, 1 countThe charges contained in the criminal complaints are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
President of Two Minnesota Nonprofits Pleads Guilty to Mail FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ROBERTA BARNES, 57, for using her nonprofit organizations to defraud two Minnesota state agencies, stealing more than $460,000 in state and federal grant funds. The defendant pleaded guilty on December 15, 2014, before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn., to one count of Mail Fraud.
“This defendant stole from grant programs designed to help underprivileged communities in Minnesota,” said Assistant U.S. Attorney Benjamin Langner. “She used the guise of two nonprofit entities to steal money that could have been used for philanthropic purposes in order to enrich herself.”
According to her guilty plea and documents filed in court, BARNES was the president of two St. Paul-based nonprofit organizations, Agape House for Mothers (“Agape”) and Sierra Young Family Institute (“Sierra”). Through Agape and Sierra, BARNES obtained approximately $1.7 million in grant funds offered by the Minnesota Department of Health (“MDH”) and the Minnesota Housing Finance Agency (“MHFA”).
From 2002 until May 2012, BARNES applied for and received grant money from MDH and MHFA through promises that the funds would be used for philanthropic purposes such as combating teen pregnancy and providing housing assistance to needy families. Instead, BARNES intended to and did use a significant portion of the grant funds to make mortgage payments, car payments and other unauthorized payments to herself and her family.
Between 2002 and 2012, BARNES, on behalf of Agape and Sierra, obtained a series of grants from MDH for the purported purpose of operating teen pregnancy programs for minority populations in the St. Paul area. In 2008, BARNES, on behalf of Sierra, applied for and received a grant from MHFA, falsely representing that the funds would be used for finance programs designed to provide assistance to households experiencing long-term homelessness.
According to her guilty plea and documents filed in court, BARNES spent more than $460,000 of the grant funds on personal expenses for herself and her family; she attempted to conceal her fraud scheme by creating fraudulent invoices that reflected false expenses incurred by Agape and Sierra.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services.
Assistant U.S. Attorneys Benjamin Langner is prosecuting the case.
Defendant Information:
ROBERTA BARNES, 57
St. Paul, Minn.
Convicted:
• Mail Fraud, 1 countTwo Charged in Conspiracy to Defraud the United States for More Than $10 MillionRead the Press Release
Health care fraud conspiracy lasted more than 10 Years
United States Attorney Andrew M. Luger today announced the indictment of THURLEE BELFREY, 48, and ROYLEE BELFREY, 48, for conspiracy to defraud the United States and healthcare fraud. For more than 15 years the BELFREYS own and operate businesses in Minnesota that provide healthcare services including nursing and home care. A significant portion of their revenue came from Medicaid. A separately charged defendant, KENNETH FRANK HARYCKI, 51, is charged by information for conspiracy to defraud the United States by preparing and filing tax forms for the BELFREYS which he knew to be fraudulent.1 THURLEE and ROYLEE BELFREY made initial appearances in United States District Court in St. Paul, Minn., on December 16, 2014.
“These defendants are charged with conspiring to obtain significant amounts of money from the United States by fraud,” said U.S. Attorney Luger. “When individuals steal from government agencies like Medicaid, they are effectively taking money from us all to line their own pockets. It is critically important that law enforcement actively investigate and prosecute healthcare fraud. I thank my partners at the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and Department of Health and Human Services Office of the Inspector General for the hard work they all put into this case. ”
“The Special Agents of IRS Criminal Investigation are committed to protecting the integrity of our system of taxation by investigating tax and accounting professionals who conspire with others to violate the tax laws,” said Special Agent in Charge Shea Jones of IRS Criminal Investigation St. Paul Field Office. “All tax professionals, including CPA Kenneth Harycki, have a duty to their clients to prepare accurate and complete tax returns that comply with the law.”
According to the indictment and documents filed in court, THURLEE and ROYLEE BELFREY owned, managed, and participated in the operation of multiple businesses in Minnesota, including Royal Health Care (Royal), Model Health Care (Model), and Integrated Health Care Services (Integrated). On October 5, 2001, investigators from the Medicaid Fraud Unit of the State of Minnesota executed a search warrant at Royal, and interviewed the BELFREYS. On June 10, 2003, THURLEE BELFREY pleaded guilty and was convicted of theft by false representation for more than $35,000 relating to Royal’s participation in the Medicaid program. Under Medicaid rules, a person convicted of a health care offense may be barred from participating in any capacity or profiting from healthcare services compensated by all Federal health care programs, including Medicaid. On February 20, 2004, THURLEE BELFREY was suspended for a period of 20 years from participation of the Minnesota Health Care Program, which administers Medicaid in Minnesota. On September 30, 2004, THURLEE BELFREY was excluded from participating in all Federal health care programs for at least 10 years.
According to the indictment and documents filed in court, sometime in 2002, THURLEE and ROYLEE BELFREY recruited a relative to be named as the owner of Model, in order to conceal THURLEE BELFREY’S role with the new company. From 2002 until at least March 20, 2014, the BELFREYS conspired to defraud Medicaid by causing THURLEE BELFREY to operate, manage, and profit from Model and other health care businesses, in violation of his suspension by the Minnesota Department of Human Services (DHS) and the United States Department of Health and Human Services (DHHS). Model illegally submitted thousands of fraudulent claims and received millions of dollars in fraudulent proceeds from Medicaid during the course of the conspiracy.
According to the indictment and documents filed in court, in order to conceal their fraudulent activity, the BELFREYS moved the proceeds of their fraudulent Medicaid claims between other businesses and bank accounts. During the conspiracy, the BELFREYS and the businesses they managed were associated with no less than 138 personal and business bank accounts, which they regularly opened and closed. They used funds paid from State and Federal health care programs for personal expenses, including $3,376.82 for Royal Caribbean Cruises, $7,276 for Sun Country Airlines, $991.12 at the W Hotel, $8,548.21 at the Trump International Resort in Miami, Fla., $2,360 at Louis Vuitton, $5,730.16 at the Dara Condo Hotel in Las Vegas, Nev., $6,378.78 to Alaska Air, $3,458.70 at the Lavo Las Vegas Restaurant, and $9,364.20 for Delta Airlines. The BELFREYS or a family member also made cash withdrawals of at least $48,783.50.
According to the HARYCKI information and documents filed in court, KENNETH FRANK HARYCKI was a certified public accountant. From at least 2007 until at least 2014, HARYCKI owned and operated a business that provided bookkeeping, payroll, and accounting services, including tax-related services. In 2007, HARYCKI began providing services to THURLEE AND ROYLEE BELFREY, including tax-related services. HARYCKI regularly prepared Model’s IRS quarterly Form 941, which reports an employer’s payroll and FICA tax liabilities to the IRS. HARYCKI knew that the BELFREYS were deducting and collecting payroll taxes from their employees, but not paying those funds to the government. HARYCKI made no attempt to correct the forms, and instead fabricated entries onto the forms to match other records and assist the BELFREYS to avoid detection by the government.
According to the HARYCKI information, on February 18, 2010, HARYCKI created the entity MKH Holdings, Inc., to assume control over bank accounts used to fund Model and other businesses operated by the BELFREYS. MKH Holdings was used to cause funds not accurately reported on income tax returns to be paid to the BELFREYS and others. During the course of the conspiracy, HARYCKI also incorporated other businesses, obtained employer identification numbers, paid for personal expenses, and opened and used numerous bank accounts for the benefit of the BELFREYS in order to avoid payment of taxes.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and Department of Health and Human Services Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Robert Lewis.
Defendant Information:
THURLEE BELFREY, 48
Saint Paul, Minn.
Charges:
• Conspiracy to Defraud the United States, 1 count
• Health Care Fraud, 1 count
ROYLEE BELFREY, 48
Saint Paul, Minn.
Charges:
• Conspiracy to Defraud the United States, 1 count
• Health Care Fraud, 1 count
KENNETH FRANK HARYCKI, 51
Stillwater, Minn.
Charges:
• Conspiracy to Defraud the United States, 1 countBelfrey Indictment
Harycki Information
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Department of Justice and City of St. Anthony Village Agree to Resolve Lawsuit over Denial of Permit for Islamic CenterRead the Press Release
St. Anthony Village Agrees in Principle to Allow Abu-Huraira Islamic Center to Worship in St. Anthony Business Center
The United States Attorney for the District of Minnesota Andrew M. Luger and Acting Assistant Attorney General for Civil Rights Vanita Gupta today announced a settlement agreement in principle between the Department of Justice and the City of St. Anthony Village, Minn., resolving allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). In June 2012, the City of St. Anthony Village denied Abu-Huraira Islamic Center’s application for a conditional use permit (CUP) to use the basement of the St. Anthony Business Center for religious assembly. The agreement, which must still be approved by the Saint Anthony City Council, the Department of Justice, and a federal district court judge in Minneapolis, will resolve the lawsuit between the United States and the City of St. Anthony Village.
“Four months ago, my office filed a civil rights lawsuit to protect the religious freedoms of the congregants of the Abu-Huraira Islamic Center,” said U.S. Attorney Luger. “We made it clear then that an injustice had been done to these Somali Minnesotans. After lengthy negotiations involving attorneys from my office and the Department of Justice, St. Anthony Village, and Abu-Huraira, we have reached a resolution that respects the Constitution and provides the worship space that Abu-Huraira sought. This agreement would not have been possible without the guiding hand of Magistrate Judge Jeffrey J. Keyes, whose wisdom and hard work brought us to this resolution. Today we all join together to announce with great pride that the Abu-Huraira Islamic Center has a new home in St. Anthony Village.”
“The Department of Justice will remain vigilant to ensure that the freedom to worship is a reality for all,” said Acting Assistant Attorney General Vanita Gupta. “We are pleased that the city worked with us to ensure that the rights of this congregation and others will be protected.” On August 27, 2014, the United States filed a lawsuit to enforce Abu-Huraira Islamic Center’s constitutional rights under RLUIPA and require the City of St. Anthony Village to allow Abu- Huraira’s religious assembly. The United States’ complaint alleged that denial of the permit imposed a substantial burden on Abu-Huraira’s exercise of religious worship. Moreover, the denial unlawfully disfavored a religious use, because the light industrial district where Abu- Huraira’s building is located allowed other, non-religious assemblies.
The United States specifically alleged that the denial of the CUP substantially burdened members of Abu-Huraira in practicing their faith. Abu-Huraira members’ ability to exercise their religion was limited by their worship site options, including, but not limited to, the fact that members in the northern Twin Cities were burdened from praying together based on the length of time to travel to worship centers in south Minneapolis. Moreover, prayer spaces at locations in south Minneapolis were too small to accommodate members, many of whom often prayed in hallways or entryways, and prayer sessions were held in shifts to accommodate crowds.
After conducting a search for adequate prayer space lasting nearly three years, Abu-Huraira entered into a purchase agreement for the St. Anthony Business Center. Abu-Huraira chose the property because it is centrally located, has a basement measuring approximately 11,600 square feet and has ample parking for its congregation. The business center is in St. Anthony’s “light industrial” district, which permitted conditional uses for “assemblies, meeting lodges, and convention halls” at that time.
In February 2012, after consulting St. Anthony Village officials, Abu-Huraira applied for a CUP for assembly. The permit was denied on June 12, 2012, by a St. Anthony Village City Council vote of 4-1.
On December 11, 2014, after a settlement conference lasting nearly twelve hours before Magistrate Judge Jeffrey J. Keyes, the City has agreed, in principle, to create a Planned Use Development (PUD) at the property in question. The PUD will allow Abu-Huraira to use the St. Anthony Business Center for religious worship. The agreed upon language also stipulates that the City of St. Anthony Village will not treat Abu-Huraira or any other religious groups in a discriminatory manner by application of its zoning laws. The agreement also indicates that elected leaders, managers, and certain City employees will participate in educational training about requirements of RLUIPA. The City of St. Anthony Village will also make RLUIPA information available to the public through its website and will report periodically to the Justice Department.
Assistant United States Attorneys for the District of Minnesota, Bahram Samie, Ana Voss, and Gregory Brooker, and attorneys from the Civil Rights Division of the United States Department of Justice, represented the United States in this matter.
RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896- 7743. More information about RLUIPA, including a report on the first ten years of its enforcement, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.ST ANTHONY CONSENT ORDER
Investment Advisor Pleads Guilty to Defrauding Investors for Millions of DollarsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of SEAN MEADOWS, 41, for using his financial planning and asset management firm, Meadows Financial Group (MFG), operated a Ponzi scheme and fraudulently obtained millions of dollars from dozens of victims. The defendant pleaded guilty on December 10, 2014, before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minn., to Mail Fraud, Wire Fraud, and Money Laundering offenses.
According to his guilty plea and documents filed in court, MEADOWS operated MFG, through which he sold insurance and investment products to clients in Minnesota, Indiana, Arizona, and elsewhere. From 2007 until April 2014, MEADOWS successfully solicited a total of at least $10 million from more than 50 clients for a purported investment managed by MFG. The defendant falsely told victims that he would use their funds to purchase bonds, real estate, or other legitimate third-party investments.
MEADOWS lured victims into removing funds from their retirement and other savings accounts by promising high rates of returns – up to 10 percent annually – when, in fact, he did not invest their funds and did not have a legitimate means by which to make interest payments. Instead, MEADOWS used funds from new investors to make interest and/or principal repayments to existing investors.
According to his guilty plea and documents filed in court, MEADOWS used the illicit proceeds of the Ponzi scheme to pay personal expenses, including: making “salary” payments to himself; making payments to his spouse; paying expenses on personal investment properties; paying personal credit card bills; purchasing a vehicle for himself; traveling to Las Vegas; gambling at various casinos and online; and spending more than $100,000 at adult entertainment establishments in Minnesota and Las Vegas.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Langner and Melinda Williams.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau, the United States Postal Inspection Service, and the Internal Revenue Service- Criminal Investigation Division.
Defendant Information:
SEAN MEADOWS, 41
Eden Prairie, Minn.
Convicted:
• Wire Fraud, 7 counts
• Mail Fraud, 3 counts
• Transaction Involving Fraud Proceeds, 1 countGrand Marais Investment Advisor Sentenced to 60 Months in Prison for $5.7 Million Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MICHAEL ROBERT DRILLING, 47, to 60 months in federal prison for devising and executing a multi- million dollar investment fraud scheme. DRILLING pleaded guilty on April 17, 2014, to one count of securities fraud. He was sentenced on December 10, 2014, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis.
According to the defendant’s guilty plea and documents filed in court, from May 2009 through March 2014, DRILLING, defrauded 13 investment advisory clients for more than $5.7 million. Through his company, Financial Advisory Partners LLC, DRILLING developed personal relationships with these clients and convinced them to entrust to him the management of their investment funds. In order to conceal the theft, DRILLING created phony accounts for each of his clients using a financial planning website, eMoneyAdvisor.com, that made it appear as if investment funds had been placed in real investment vehicles.
In total, DRILLING stole more than $5.7 million in investment funds from thirteen of his clients. He lied to his clients, telling them that their money was placed in a larger pool of funds that could be managed more efficiently. Instead, DRILLING used the stolen funds for his own personal and business expenses. DRILLING also lost millions of dollars at casinos.
This case resulted from an investigation conducted by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Timothy C. Rank.
Defendant Information:
MICHAEL ROBERT DRILLING, 47
Grand Marais, Minn.
Convicted:
• Securities Fraud, 1 count
Sentenced:
• 60 months in prison
• Restitution in the amount of $5,778,877.88Maple Plain Man Sentenced to 150 Months in Prison for Stealing Millions from Mortgage Loan LendersRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ALPHA RASHIDI MSHIHIRI, 39, to 150 months in federal prison for orchestrating a multi-million dollar mortgage fraud conspiracy. MSHIHIRI was convicted, on February 20, 2014, following a seven-day trial, of each count of the indictment against him, including Conspiracy to Commit Bank Fraud, Bank Fraud, Mail Fraud, and Wire Fraud. He was sentenced on December 8, 2014, before Senior Judge David S. Doty in U.S. District Court in Minneapolis.
As proven at trial, between 2007 and 2009, MSHIHIRI, who was once a licensed mortgage broker, and his co-conspirators defrauded a number of lenders for millions of dollars by recruiting straw buyers, falsifying loan applications and other documents, and inflating real estate purchase prices. As part of the conspiracy, straw buyers submitted fraudulent loan applications to mortgage lenders. In some instances, they used stolen identities to fill out loan applications.
In support of fraudulent loan applications, MSHIHIRI and his co-conspirators also created false documents, such as W-2s, paystubs, driver’s licenses, and bank statements, which straw buyers submitted to mortgage lenders to obtain financing. In some instances, the proceeds of the loans were used to pay existing mortgages, financially benefitting MSHIHIRI and others. The scheme also included MSHIHIRI’s involvement in kickbacks to GWP and Pristine Home Loans, companies he owned and operated. Every property purchased through the scheme went into foreclosure, resulting in nearly $2 million in losses to the victim lenders.
This case resulted from an investigation conducted by the Internal Revenue Service-Criminal Investigation, the Minnesota Financial Crimes Task Force, the United States Secret Service, and the U.S. Department of Housing and Urban Development – Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu and David Genrich.
The U.S. Attorney’s Office reminds people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.
Defendant Information:
ALPHA RASHIDI MSHIHIRI, 39
Maple Plain, Minn.
Convicted:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
• Wire Fraud, 2 counts
• Mail Fraud, 1 count
Sentenced:
• 150 months in prison
• Five years supervised releaseRed Lake Man Sentenced to 10 Years for Domestic AssaultRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of KYLE WAYNE MARTIN, SR., 25, an enrolled member of the Red Lake Band of Chippewa Indians, to 120 months in federal prison for a violent domestic assault committed on the Red Lake Indian Reservation. MARTIN pleaded guilty on August 20, 2014, to one count of strangulation. The defendant was sentenced today before Chief Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, on March 24, 2014, MARTIN assaulted the victim, who was an intimate acquaintance, in the driveway of the family home in the Ponemah District within the exterior boundaries of the Red Lake Indian Reservation. MARTIN strangled the victim in a severe act of domestic violence, restraining her as she attempted to escape in her car. MARTIN also assaulted his relatives when the victim sought to escape from the house. The attack left the victim with both physical and emotional injuries.
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 resulted from an investigation conducted by the Red Lake Tribal Police Department and the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
KYLE WAYNE MARTIN, SR., 25
Ponemah, Minn.
Convicted:
• Strangulation, 1 count
Sentenced:
• 120 months in prisonPonemah Man Sentenced for Violently Strangling A Woman on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of TERRY DEAN ICEMAN, 47, to 41 months in federal prison for a violent assault committed on the Red Lake Indian Reservation. On April 3, 2014, following a three-day trial, a federal jury found ICEMAN guilty of one count of strangulation. The defendant was sentenced in U.S. District Court in Duluth, Minn., on December 2, 2014.
As proven at trial, on the morning of July 18, 2013, ICEMAN assaulted his girlfriend by hitting her repeatedly and dragging her by her hair. During the assault, ICEMAN threw the victim onto the ground and strangled her with an article of clothing that he had torn from her body. As a result of the attack, the victim suffered swelling and bruising on her face and neck as well as bruising all over her body.
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 resulted from an investigation conducted by the Red Lake Tribal Police Department and the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Deidre Y. Aanstad.
Defendant Information:
TERRY DEAN ICEMAN, 47
Ponemah, Minn.
Convicted:
• Strangulation, 1 count
Sentenced:
• 41 months in prisonLakeville Food Packaging Plant Employee Indicted for Conspiring to Defraud Company for More Than $1.8 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of CHARLES MICHAEL COLES, 43, and others, for conspiring to defraud an Illinois-based food packaging and processing company for more than $1.8 million. COLES was employed as a buyer/inventory coordinator for the Illinois-based company, and was responsible for maintaining the parts inventory of a food packaging plant located in Lakeville, Minn. The defendants are expected to make initial appearances on December 15, 2014, in U.S. District Court in Saint Paul, Minn.
According to the indictment and documents filed in court, from at least 2011 until November 14, 2014, COLES was responsible for ordering parts, submitting purchase orders, receiving shipments of parts, and maintaining the parts inventory at the Lakeville, Minn., plant of a food packaging and processing company. COLES devised a scheme to defraud his employer by submitting false invoices for industrial supplies and parts purportedly supplied by several fictitious industrial supply companies.
According to the indictment and documents filed in court, COLES conspired with and recruited his co-conspirators, STEVE CROOK, AARON ASH, DARREN GARDNER, JACQUELINE ROBINSON, and WILLIAM DAMPIER, to create fictitious industrial supply companies. COLES then submitted fraudulent purchase orders and invoices to his employer from each of his co-conspirators’ fictitious companies. After COLES’ employer paid the fraudulent invoices, each co-conspirator split the proceeds with COLES.
According to the indictment and documents filed in court, between April 2011 and October 2014, CROOK owned a fictitious company called Karlvelous Supply. The only address for Karlvelous Supply was a rented mailbox inside a UPS Store in White Bear Lake, Minn. COLES and CROOK caused approximately $582,224 to be paid to Karlvelous Supply on the basis of false and fraudulent invoices submitted by COLES, and COLES and CROOK split the proceeds of these fraudulent payments.
According to the indictment and documents filed in court, between October 2011 and October 2014, ASH owned a fictitious company called Rubber-Steel Products, LLC. The only address for Rubber-Steel Products, LLC, was a rented mailbox inside a UPS Store in Brooklyn Center, Minn. COLES and ASH caused approximately $512,218 to be paid to Rubber-Steel Products on the basis of false and fraudulent invoices submitted by COLES, and COLES and ASH split the proceeds of these fraudulent payments.
According to the indictment and documents filed in court, between January 2012 and October 2014, GARDNER owned a fictitious company called DG Automation Controls, LLC. The only address for DG Automation Controls, LLC, was a rented mailbox inside a UPS Store in Eden Prairie, Minn. COLES and GARDNER caused approximately $409,191 to be paid to DG Automation Controls on the basis of false and fraudulent invoices submitted by COLES, and COLES and GARDNER split the proceeds of these fraudulent payments.
According to the indictment and documents filed in court, between January 2013 and November 2014, ROBINSON owned a fictitious company called Tessman Industrial Supply, LLC. The only address for Tessman Industrial Supply, LLC, was a rented mailbox inside a UPS Store in Saint Paul, Minn. COLES and ROBINSON caused approximately $253,881 to be paid to Tessman Industrial Supply on the basis of false and fraudulent invoices submitted by COLES, and COLES and ROBINSON split the proceeds of these fraudulent payments.
According to the indictment and documents filed in court, between June 2014 and November 2014, DAMPIER owned a fictitious company called A-Z Industrial Supply Co., LLC. The only address for A-Z Industrial Supply Co., LLC., was DAMPIER’S home address in Phoenix, Ariz. COLES and DAMPIER caused approximately $47,666 to be paid to A-Z Industrial Supply Co., on the basis of false and fraudulent invoices submitted by COLES, and COLES and DAMPIER split the proceeds of these fraudulent payments.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigations, and the Lakeville Police Department.
This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
Defendant Information:
CHARLES MICHAEL COLES, 43
Otsego, Minn.
Charges:
• Conspiracy to Commit Mail Fraud, 1 count
• Mail Fraud, 5 counts
STEVE KARLVELOUS CROOK, 43
Maplewood, Minn.
Charges:
• Conspiracy to Commit Mail Fraud, 1 count
• Mail Fraud, 1 count
AARON ARTHUR ASH, 42
Minneapolis, Minn.
Charges:
• Conspiracy to Commit Mail Fraud, 1 count
• Mail Fraud, 1 count
DARREN LAMONT GARDNER, 42
Unknown
Charges:
• Conspiracy to Commit Mail Fraud, 1 count
• Mail Fraud, 1 count
JACQUELINE ROBINSON, 46
Saint Paul, Minn.
Charges:
• Conspiracy to Commit Mail Fraud, 1 count
• Mail Fraud, 1 count
WILLIAM CURTIS DAMPIER, 32
Phoenix, Ariz.
Charges:
• Conspiracy to Commit Mail Fraud, 1 count
• Mail Fraud, 1 countMinnesota Woman Charged with Stealing Passport to Travel to SyriaRead the Press Release
United States Attorney Andrew M. Luger today announced a complaint charging YUSRA ISMAIL, 20, with stealing and misusing a passport. According to the complaint and documents filed in court, on August 18, 2014, ISMAIL visited a friend and asked to see her passport. Before leaving her home on that day, ISMAIL surreptitiously took the passport and subsequently left her friend’s home.
According to the complaint and documents filed in court, three days later, ISMAIL asked a different friend to drive her to Minneapolis/Saint Paul airport, from which she departed on a flight bound for Amsterdam, the Netherlands. She later traveled from Amsterdam to Oslo, Norway.
According to the complaint and documents filed in court, ISMAIL contacted members of her family on August 24, 2014, and told one or more of them that she was in “Sham,” which is a term commonly used to describe the area within Syria and Iraq where the Islamic State of Iraq and Syria (ISIS) is attempting to establish a caliphate.
There is no record that ISMAIL, who is not a United States citizen, has lawfully returned to the United States.
This case is the result of an investigation conducted by the Joint Terrorism Task Force, under the supervision of the Federal Bureau of Investigation.
Defendant Information:
YUSRA ISMAIL, 20
Saint Paul, Minn.
Charges:
• Misuse of Passport, 1 countYusra Ismail Criminal Complaint
The charges contained in the indictment are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Jury Finds Former Minnesota Real Estate Developer Guilty of Tax Evasion, Mail and Wire FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of BARTOLOMEA JOSEPH MONTANARI, 57, formerly of Bayport, Minn., for tax evasion and fraud. On May 21, 2014, MONTANARI was indicted on one count of Evasion of Payment of Taxes, one count of Mail Fraud, and one count of Wire Fraud. On November 25, 2014, following a 6-day trial, a federal jury found MONTANARI guilty on all counts.
The evidence presented at trial proved that from 2009 until January 2012, MONTANARI willfully evaded the payment of employment and excise taxes owed by him and the three businesses he controlled: St. Croix Development, Emlyn Coal Processing, and Montie’s Resources. One of the ways MONTANARI avoided paying taxes and TFRPs was by transferring over $1.1 million into a bank account in the name of Bella Luca Properties LLC (“Bella Luca”), a shell company with no legitimate business purpose but used by MONTANARI to pay personal expenses. MONTANARI evaded payment of more than $700,000 in taxes and TFRPs to the federal government.
In December 2009, when the IRS attempted to collect taxes and TFRPs, MONTANARI filed a fraudulent financial statement making numerous misrepresentations to the IRS to avoid paying the taxes he owed. For example, he failed to disclose multiple personal vehicles that he owned and he denied the existence of the Bella Luca bank account, which he was using to receive monthly compensation of $50,000 from two of his companies. MONTANARI also lied about living in Bayport, Minn., when, in truth, he had already moved into a $1.4 million house he was purchasing in Knoxville, Tennessee.
In addition, as part of a fraud scheme, MONTANARI lied about the sale price of a Caterpillar dozer that he needed to purchase for one of his companies. Montanari submitted a doctored invoice to the dozer financing company, which issued a check for the dozer for $100,000 more than the true purchase price. MONTANARI kept the extra $100,000 and used it as a down payment for the house in Tennessee.
U.S. District Judge Ann D. Montgomery will sentence MONTANARI following the completion of a presentence investigation. A date for sentencing has not been set.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, the U.S. Postal Inspection Service, and the Minnesota Financial Crimes Task Force.
Assistant U.S. Attorneys William Otteson and Melinda Williams are prosecuting this case.
Defendant Information:
BARTOLOMEA JOSEPH MONTANARI, 57
Knoxville, Tenn.
Convicted:
• Evasion of Payment of Taxes, 1 count
• Mail Fraud, 1 count
• Wire Fraud, 1 countTwo Minnesotans Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced a criminal complaint charging ABDI NUR, 20, and ABDULLAHI YUSUF, 18, with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). NUR is additionally charged with providing material support to a foreign terrorist organization. YUSUF is expected to make an initial appearance at 2:00 p.m. today before Magistrate Judge Janie S. Mayeron in United States District Court in Minneapolis, Minn.
“As charged, these two young men conspired to join ISIL and travel from Minnesota to the Middle East to engage in a campaign of terror in support of a violent ideology,” said U.S. Attorney Luger. “Since al-Shabaab began recruiting young adults from the Twin Cities in 2007, our region has lost dozens of disaffected young people to terrorist organizations that would sooner see Somali Minnesotans die on foreign battlefields than prosper in peace and security in the United States. The law-abiding members of Minnesota’s Somali community are great partners in our fight against terror, and I am proud to work closely with community and religious leaders to lift up those Somali youth who remain vulnerable to terrorist recruiters. Unfortunately, Yusuf and Nur were not the first – and may not be the last – to conspire in support of ISIS. As we work with our many partners to improve the lives of Somali Minnesotans, we will continue to investigate and prosecute aggressively criminals who provide support for terror.”
“More than 16,000 recruits from over 90 countries traveled to Syria to become foreign terrorist fighters with alarming consequences,” said John Carlin, Assistant Attorney General for National Security. “This is a global crisis and we will continue our efforts to prevent Americans from joining the fight and to hold accountable those who provide material support to foreign terrorist organizations. With these two defendants, we have now charged more than 15 individuals with offenses related to the foreign fighter threat in Syria.”
FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton said, “The FBI remains committed to both its community partners and to its law enforcement mandate concerning the detection and disruption of terrorist activity. This Complaint epitomizes the FBI's commitment to upholding the laws of the United States as they apply to those who would support terrorism.”
ABDULLAHI YUSUF
According to the criminal complaint and documents filed in court, on April 28, 2014, YUSUF applied for an expedited passport at the Minneapolis Passport Office. He told the passport specialist that he intended to travel to Turkey, but when asked, YUSUF could not specify his travel itinerary, travel companions, hotel location, or the name or address of a friend in Turkey who he claimed to have met recently via Facebook. The passport specialist also asked YUSUF about the cost of his trip, which YUSUF reported as, “about $1,500,” however, YUSUF had no known source of income. YUSUF obtained his passport on May 5, 2014, and used it to open a checking account on the same day.
According to the criminal complaint and documents filed in court, on May 23, 2014, YUSUF deposited $1,500 in cash into his Wells Fargo checking account in four separate ATM deposits spread throughout the day. On May 24, 2014, YUSUF used a debit card associated with the same account to purchase a $1,417.05 airline ticket from Minneapolis/Saint Paul to Istanbul, Turkey. The ticket was for a flight scheduled to depart Minneapolis/Saint Paul on May 28, 2014. His parents did not know that YUSUF had obtained a passport and planned to travel to Turkey, nor did they know that he had acquired $1,500 and purchased an airline ticket.
YUSUF is associated with H.M., a former Minnesota resident now believed to be fighting in Syria, and who traveled from Minnesota to Turkey on March 9, 2014. The same debit card was used to purchase H.M.’s airline ticket as was used to purchase an airline ticket for a third man from Minnesota who later traveled to Syria to fight with ISIL. YUSUF exchanged several telephone calls and text messages with H.M. in the days before YUSUF attempted to depart for Turkey.
On the morning of May 28, 2014, YUSUF’S father drove him to school. Approximately one hour after arriving at school, YUSUF walked to a mosque near his school. YUSUF left the mosque and was driven to a light rail station from which YUSUF departed for the airport. At the airport, YUSUF was advised by agents from the Federal Bureau of Investigation (FBI) that he would not be permitted to travel to Turkey as he had planned.
ABDI NUR
According to the criminal complaint and documents filed in court, ABDI NUR departed from the Minneapolis/Saint Paul airport for Istanbul, Turkey on May 29, 2014. Prior to his departure, on 2 3 April 24, 2014, NUR obtained an expedited U.S. Passport. On May 24, 2014, NUR made an ATM deposit of $1,540 in cash to his checking account. On May 27, 2014, NUR purchased an airline ticket for $1,619.30, using a debit card associated with the same checking account. Like YUSUF, NUR was unemployed when he purchased his airline ticket. NUR successfully boarded a flight for Turkey on May 29, 2014. He was scheduled to return to the United States on June 16, 2014, but did not.
According to the criminal complaint and documents filed in court, NUR had become “much more religious,” in the two months preceding his departure, including talking about how his family needed to pray more and wear more traditional clothing. NUR began to talk about jihad during this time period.
According to the criminal complaint and documents filed in court, NUR has communicated via Facebook with an individual in the United States after his departure for Turkey. During those communications, NUR stated that he has gone “to the brothers,” and that we “will see each other in the afterlife inshallah,” and “im not coming back” (sic). NUR has also communicated with a separately charged defendant, Mohamed Abdullahi Hassan, a/k/a “Miski.”
According to the criminal complaint and documents filed in court, after asking NUR if he knew “Duale” (a U.S. citizen known to have traveled to Syria), MISKI advised NUR “…Being connected in Jihad make you stronger and you can all help each other by fulfilling the duties that Allah swt (sic) put over you…Like us in Somalia the brothers from mpls are well connected so try to do the same….It is something we have learned after 6 years in Jihad.”
This case is the result of an investigation conducted by the FBI.
Defendant Information:
ABDI NUR, 20
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Providing Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
ABDULLAHI YUSUF, 18
Inver Grove Heights, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 countYusuf and Nur Complaint
The charges contained in the indictment are merely accusations, and the defendants is presumed innocent unless and until proven guilty.