District of Minnesota
Press releases recorded for this federal judicial district.
Man Sentenced for Damaging Property with A Snow Plow on the Bois Forte Indian ReservationRead the Press Release
MINNEAPOLIS— Recently in federal court in Duluth, a Hibbing man was sentenced for damaging property belonging to the Fortune Bay Casino on the Bois Forte Indian Reservation. United States District Court Judge John R. Tunheim sentenced Shane Alan Simonson, age 26, to 18 months in federal prison on June 27, 2014. Simonson, who was indicted on August 21, 2013, pleaded guilty on December 12, 2013 to one count of Criminal Damage of Property in the First Degree.
In his plea agreement, Simonson admitted to damaging physical property belonging to the Bois Forte Band of Chippewa. Specifically, on the morning of May 9, 2013, Simonson took a large Band-owned snow plow truck, without permission to operate or possess the truck, and drove it into a maintenance shed, causing significant damage. Simonson then used the snow plow to damage a parking lot barricade and gate, as well as the green of the Fortune Bay Casino’s 11th hole.
In addition to the 18-month term of imprisonment, Judge Tunheim ordered Simonson to pay $68,983 in restitution, the full amount of loss suffered by the Fortune Bay Casino and the Bois Forte Band of Chippewa.
This case was the result of an investigation by the Federal Bureau of Investigation and the Bois Forte Police Department. It was prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.Tax Preparer Sentenced for Defrauding the IRSRead the Press Release
MINNEAPOLIS— Today in federal court, United States District Court Judge Ann D. Montgomery sentenced Ieisha Smith to 24 months in federal prison for devising and executing a scheme to defraud the Internal Revenue Service (“IRS”) by filing fraudulent tax returns for clients. Smith, who was indicted on December 3, 2012, pleaded guilty on May 29, 2014 to one count of False Claims.
In her plea agreement, Smith admitted that she began the scheme in February 2009, when individuals came to her home for assistance in filing their income taxes. Specifically, she filed false tax returns on their behalf and in those returns falsely claimed that taxes had been withheld and refunds were due, all of which she knew to be false. In the scheme, Smith attempted to steal $765,137 from the IRS. The IRS incurred an actual loss of $362,246.
This case was the result of an investigation by the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return- Preparer.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Princeton Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS — Yesterday in federal court, a 32-year-old Princeton man pleaded guilty to one count of Distribution of Child Pornography. William C. E. Strobel, who was indicted on February 19, 2014, entered his guilty plea before United States District Judge Donovan W. Frank.
In his plea agreement, Strobel admitted that between February 2010 and December 2011 he accessed a peer-to-peer file sharing program and traded images and videos depicting the sexual exploitation of children. The defendant also admitted that he possessed on his computers and other digital media more than 20,000 images and more than 600 videos depicting minors, including children under the age of 12, engaged in sexually explicit conduct.
For his crime, Strobel faces a possible maximum sentence of 40 years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Princeton Police Department. It is being prosecuted by Assistant United States Attorney Karen B. Schommer.
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 U.S. Attorney offices and the Justice Department’s Criminal Division, 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.”Minneapolis Man Sentenced to Ten Years for Conspiring to Distribute Marijuana and Money LaunderingRead the Press Release
MINNEAPOLIS— Yesterday in federal court, United States District Court Judge Donovan Frank sentenced a 35-year-old Minneapolis man to 120 months in federal prison, followed by five years of supervised release, for conspiring to distribute marijuana and money laundering. A United States grand jury indicted Irineo Serio Moreno on March 4, 2013, on the drug charge. On July 8, 2013, the United States Attorney filed an Information charging Moreno with the money laundering charge. On July 12, 2013, Moreno agreed to plead guilty to both charges.
In his plea agreement, Moreno admitted that from at least January 2009 through December 20, 2012, he conspired with Ryan Timothy Solon, Christopher David Schumacher, Shawn Andrew Withrow, Jeremy Allen Anderson, Corey William Johns, Arthur Eugene Johns, and Matthew Ryan Waste to distribute 1000 kilograms of marijuana from California to Minnesota. In addition, Moreno admitted that he owned land in Northern California where he operated a marijuana grow farm, hiring and paying others to tend to the marijuana plants. Some of the marijuana from that farm was distributed in Minnesota.
Moreno also admitted to laundering the proceeds from the sale of the marijuana by purchasing assets including a Polaris UTV (an off-road utility task vehicle) and a trailer for $17,442.
As part of his plea agreement, Moreno agreed to forfeit to the United States the land in California and a 1999 Chevrolet Tahoe.
This case was the result of an investigation by IRS- Criminal Investigation and the United States Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney LeeAnn Bell.Seven Individuals Charged in Bank Fraud and Identity Theft RingRead the Press Release
MINNEAPOLIS—The United States Attorney’s Office announced today that a federal grand jury indicted a man on a variety of charges stemming from an identity theft, bank fraud, wire fraud, and tax fraud conspiracy. Six additional co-conspirators were charged via Information for their roles in the conspiracy.
Christopher Lindsey, the individual who allegedly orchestrated the conspiracy, was arrested today and charged in a 23-count indictment. Specifically, Lindsey was charged with one count of Conspiracy to Commit Bank and Wire Fraud, 12 counts of Bank Fraud, three counts of Wire Fraud, four counts of Aggravated Identity Theft, one count of Conspiracy to Defraud the United States, and two counts of submitting False Claims for Refunds. Eric Childs was charged with one count of Conspiracy to Commit Bank and Wire Fraud. Nicole Shantelle Ashton, Monta Dormus Davis, Quentin Nathaniel Durr, Joanetta Joyce Robinson, and Tramaine Michael Smith each face one count of Conspiracy to Commit Bank Fraud.
According to the 23-count indictment:
From October of 2002 until December of 2013, Lindsey allegedly coordinated an elaborate check fraud scheme as well as a fraudulent tax return scheme. As part of the alleged check fraud scheme, Lindsey obtained legitimate bank account information, including names and addresses of businesses and individuals, bank routing and account numbers, check numbers, and signatures, from a variety of sources, including approximately 20,000 stolen checks that had already been negotiated as part of legitimate transactions. Lindsey then used that information in the creation of counterfeit checks. Lindsey, and other members of the conspiracy, would then negotiate the counterfeit checks at various financial institutions and businesses throughout the Twin Cities area. The total intended and actual loss for the counterfeit check scheme that Lindsey and his conspirators carried out was more than $1 million.
Also during this time, Lindsey allegedly executed a conspiracy to submit false claims to the IRS. Lindsey and other conspirators recruited individuals to file false and fraudulent tax returns with the IRS. Lindsey would create false and fraudulent Form W-2s for those individuals, in which he combined the correct information of his conspirators, including names, dates of birth, and social security numbers, along with false information regarding employment, earnings, and withholdings. As a result of these actions, Lindsey and his conspirators caused the IRS to issue fraudulent income tax refunds.
These fraudulent refunds were then loaded onto debit cards issued to the conspirators who had filed the fraudulent returns. The conspirators, in turn, provided the debit cards to Lindsey, who then used the debit cards at ATMs to make cash withdrawals. The conspiracy involved the submission of more than 40 fraudulent claims seeking refunds totaling more than $270,000.
If convicted, Lindsey faces a potential maximum penalty of 30 years in prison for conspiring to commit bank and wire fraud, bank fraud and wire fraud, and a mandatory minimum sentence of two years on each count of aggravated identity theft. Lindsey also faces a potential maximum penalty of 10 years in prison for conspiring to defraud the United States and a potential maximum penalty of five years in prison for false claims for refunds. All sentences are ultimately determined by a federal district court judge.
United States Attorney Andrew M. Luger stated that, “The crimes charged in this case have a real impact on our community and economy. Because of the nature of this organization and its crimes, the defendants were able to support their criminal network for more than ten years. Because of the great work of the Minnesota Financial Crimes Task Force, and the strong law enforcement partnerships that are central to its operation, these defendants are being held to account for their crimes.”
This case is the result of an investigation led by the Minnesota Financial Crimes Task Force, which was established pursuant to state law. The task force investigates financial crimes related to identity theft, with a special emphasis on organized criminal enterprises. It is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing trend of cross-jurisdictional financial crimes.
“This investigation came together as a result of the partnerships between agencies and the extraordinary efforts of all involved working under the umbrella of the Minnesota Financial Crimes Task Force and is an example of successful collaboration of local, state, and federal criminal justice agencies,” said Patrick Henry, Commander of the Minnesota Financial Crimes Task Force.
The Minnesota Financial Crimes Task Force serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate. Its participants include the U.S. Secret Service, the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service-Criminal Investigations Division, the Minneapolis Police Department, the St. Paul Police Department, the Edina Police Department, the Duluth Police Department, the Ramsey County Sheriff’s Office, the Mille Lacs County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
“IRS-Criminal Investigation, along with our law enforcement partners and the U.S. Attorney’s Office, remain vigilant in our duty to protect the honest taxpayers of this country by diligently investigating identity theft and refund fraud crimes and holding those accountable who defraud the government and hurt innocent taxpayers,” stated Rick Goss, St. Paul Field Office Acting Special Agent in Charge of IRS-Criminal Investigation.
Louis Stephens, Special Agent in Charge of the local office of the United States Secret Service added, “These individuals are well versed in using identity theft to commit bank fraud and other types of financial crimes. This type of crime continues to increase in complexity and the impact on our economy and communities throughout Minnesota, especially the greater Twin Cities area, grows each year. Identity theft and related crimes are the crime wave of today and will continue to be in the future. Criminal conspiracies such as this are extremely difficult to investigate because they are hierarchical in nature and commit their crimes across jurisdictional lines in an effort to frustrate law enforcement’s ability to track them and associate their crimes. The Minnesota Financial Crimes Task Force is a force multiplier that enables the combined resources of federal, state, and local law enforcement to pool our resources and maximize each agency’s expertise to more effectively combat this type of crime.”
This case is being prosecuted by Assistant United States Attorney Lola A. Velazquez-Aguilu.The charges contained in an indictment are mere allegations and defendants are presumed innocent unless and until proven guilty.
Minnesota Man Convicted of 18 Counts Related to International Arms SmugglingRead the Press Release
MINNEAPOLIS—Recently in federal court, a jury found a Minneapolis man guilty of smuggling guns to Nigeria and lying on required federal firearms purchase records. Sheriff Olaleran Mohammed, 51, a naturalized U.S. citizen currently living in Brooklyn Park, was convicted on Monday of one count of Smuggling Goods from the United States and 17 counts of providing False Statements During the Purchase of a Firearm. Mohammed was indicted in October 15, 2013 and was arrested November 22, 2013 in Atlanta, when returning from Nigeria. His trial before United States District Court Judge Susan Richard Nelson began June 11, 2014 and concluded Monday.
“Gun smuggling overseas is a serious offense our office will pursue aggressively,” said U.S. Attorney Andrew Luger. “I am pleased with the jury’s verdict and with the hard work that led to that verdict.”
The investigation began in the fall of 2012 when agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) discovered seven handgun purchases were made within days of each other at a gun shop in the western suburbs of the Twin Cities. Investigators eventually discovered Mohammed had made a total of 17 handgun purchases between 2009 and 2012. ATF investigators suspected there was a high likelihood Mohammed had lied on at least some of the firearms purchase forms, which are required by U.S. law to legally purchase weapons from a federally licensed firearms dealer.
Agents of Homeland Security Investigations (HSI) determined Mohammed was engaged in the international export business and that he frequently traveled to Nigeria, which raised further questions about the unusual number of purchases.
In December 2012, HSI agents further discovered that Mohammed was shipping a vehicle to Nigeria via ocean container through Valencia, Spain and suspected at least some of the weapons were hidden inside.
HSI agents contacted Spanish law enforcement officers in Madrid who halted the shipment, inspected the vehicle and discovered seven 9 mm, and one .22 caliber handguns hidden within the vehicle. The firearms were seized by Spanish authorities and later turned over to U.S. authorities for use in Mohammed’s criminal proceedings.
Mohammed faces a potential maximum penalty of 10 years in prison on each count. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.
This conviction is the result of a joint investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.St. Paul Attorney Convicted of Money Laundering Drug Proceeds Through His Law FirmRead the Press Release
MINNEAPOLIS — Today in federal court, a jury returned guilty verdicts on all three counts of an indictment charging Robert David Boedigheimer, 51, of Stillwater, with one count of Conspiracy to Commit Money Laundering, one count of Money Laundering, and one count of making a False Statement to an IRS Agent. Boedigheimer, a St. Paul attorney, was indicted on December 10, 2013.
Boedigheimer conspired with Brandon Lusk, his brother-in-law, a marijuana dealer based in southem Minnesota to launder the proceeds from the sales of marijuana. Lusk pleaded guilty in October 2011 to one count of conspiracy and one count of conspiracy to commit money laundering. Lusk admittedly formed a company called Rochester Reliable Rentals, which acquired nine Rochester properties. Lusk knowingly financed improvements and renovations to those properties with proceeds of the marijuana conspiracy through the assistance of Boedigheimer. Brandon Lusk, along with Richard Kay of Rochester and others conspired to distribute more than 1000 grams of marijuana. Kay was sentenced to 200 months in prison and Lusk is currently awaiting sentencing.
Prosecutors are very pleased with the verdict. Assistant United States Attorney Steven L. Schleicher stated, “This case needed to be prosecuted because as a practicing lawyer, the defendant abused the trust that society places on the practice of law by laundering drug money through his law firm and obstructing a federal investigation.”
Boedigheimer faces a potential maximum penalty of 20 years in prison on the conspiracy count, 10 years on the money laundering count, and five years on the false statements count. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Internal Revenue Service- Criminal Investigation Division, the Minnesota Bureau of Criminal Apprehension, the Drug Enforcement Administration, the Southeast Minnesota Narcotics and Gang Task Force (SEMNGTF), and the Wabasha County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorneys Steven L. Schleicher and Julie E. Allyn.Claremont, Minnesota Man Sentenced for Conspiring to Distribute Methamphetamine and Illegal Firearms UsageRead the Press Release
MINNEAPOLIS — Yesterday in federal court, a 38-year-old Claremont man was sentenced for conspiring to distribute methamphetamine and illegal firearms possession. United States District Court Judge Richard H. Kyle sentenced Clancy Shane Amy to 78 months in federal prison, followed by five years of supervised release. Amy, who was indicted on May 6, 2013, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine as well as one count of Using and Carrying a Firearm During and in Relation to a Drug Trafficking Offense.
In his plea agreement, Amy admitted that from at least August 2012 through March 2013, he conspired with others to distribute methamphetamine from Texas to areas within southeastern Minnesota. Amy admitted that his actions were part of a larger drug distribution enterprise which was operated by multiple conspirators between Minnesota and other areas of the United States. Further, Amy admitted that during a law enforcement search of his home on April 16, 2013, agents found various items associated with the distribution of methamphetamine, including 112 grams of methamphetamine packaged in multiple plastic baggies as well as multiple firearms. Amy also admitted that he possessed one of the firearms for security and protection in his drug distribution efforts – namely a Browning .22 caliber semi-automatic handgun found in a bedroom safe with some of the recovered methamphetamine and U.S. currency.
This case was the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Drug Enforcement Administration, the South Central Drug Investigation Unit, and the Southeast Minnesota Narcotics and Gang Task Force. It was prosecuted by Assistant United States Attorney Allen A. Slaughter.St. Paul Felon Pleads Guilty to Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS — Earlier this week in federal court, a 31-year-old St. Paul man pleaded guilty to one count of Possession of a Stolen Firearm. Michael Anthony Vargas, who was charged via an Information on May 3, 2014, entered his guilty plea on June 3, 2014 before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Vargas admitted that on January 8, 2014, he possessed a stolen Smith & Wesson 9-millimeter pistol, which was recovered during a traffic stop by the St. Paul Police Department.
For his crime, Vargas faces a potential maximum penalty of 10 years in federal prison. Judge Ericksen will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. It is being prosecuted by Assistant United States Attorney LeeAnn K. Bell.Mizpah Man Sentenced for Robbing the First State Bank of Bigfork in KelliherRead the Press Release
MINNEAPOLIS — Earlier this week in federal court, a 21-year-old Mizpah man was sentenced for his role in the robbery of the First State Bank of Bigfork in Kelliher, Minnesota on December 10, 2012. On June 3, 2014, United States District Court Judge Donovan W. Frank sentenced Cody Lowell Troy to 120 months in federal prison, followed by 5 years of supervised release. Troy, who was indicted along with a co-defendant on January 15, 2013, pleaded guilty to one count of Brandishing a Firearm During a Crime of Violence.
In his plea agreement, Troy admitted to robbing the bank while brandishing a 12-gauge, sawed-off shotgun that had a partially obliterated serial number. He stole approximately $3,738.
This case was the result of an investigation by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Kevin S. Ueland.Criminal Complaint Filed Today in Federal Court Charges St. Paul Man with Sex Trafficking of MinorsRead the Press Release
MINNEAPOLIS—Today in federal court, a 25-year-old St. Paul man was charged by Complaint with sex trafficking of a minor and conspiracy to commit sex trafficking of a minor. Dontre D’Sean McHenry made his initial appearance this afternoon before United States Magistrate Judge Jeanne J. Graham. McHenry was temporarily detained and a final detention hearing is scheduled for tomorrow before Judge Graham.
According to allegations in the Criminal Complaint, between February 25, 2014 and June 4, 2014, McHenry engaged in criminal sex trafficking by exploiting three minor females and causing them to engage in commercial sex acts by force, threats of force, fraud, or coercion for the defendant’s profit.
A law enforcement affidavit filed in the case alleges that McHenry would communicate with “johns” or potential “johns” via text messages and online chat rooms to arrange commercial sex with three minor females.
On March 12, 2014, officers responded to a Backpage.com advertisement thought to be that of a juvenile sex trafficking victim. The information from the advertisement led investigators to the Motel 6 in Roseville where McHenry was found inside a hotel room with a 17-year-old female. Further investigation revealed that McHenry had also recruited a 15-year old female and a 16-year-old female for the purpose of engaging in commercial sex acts.
United States Attorney Andrew M. Luger stated that, “the allegations in the Complaint set forth a sophisticated, ongoing criminal sex trafficking business run by McHenry. The exploitation of minors for commercial sex will not be tolerated by this Office or our law enforcement partners.”
“Protecting our communities from those who engage in human trafficking is a top priority for Homeland Security Investigations,” said Special Agent in Charge J. Michael Netherland of the HSI St. Paul Division Office. “HSI is committed to working with our federal, state, and local law enforcement partners to investigate human trafficking, as well as working with community and faith-based organizations to identify, rescue, and assist victims of trafficking."
If convicted, McHenry faces a potential minimum sentence of 10 years in federal prison and a maximum of life imprisonment. All sentences are ultimately determined by a federal district court judge.
This case is the result of an investigation by Homeland Security Investigations, the St. Paul Police Department, the Minneapolis Police Department, the Rochester Police Department, and the Roseville Police Department. This case is being prosecuted by Assistant United States Attorney Laura M. Provinzino.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/The charges contained in a criminal complaint are mere allegations and defendants are presumed innocent unless and until proven guilty.
St. Paul Man Pleads Guilty to Bank RobberyRead the Press Release
MINNEAPOLIS — Last week in federal court, a 47-year-old St. Paul man pleaded guilty to robbing two banks. Maurice Dixon specifically pleaded guilty to two counts of Bank Robbery. Dixon, who was indicted on December 17, 2013, entered his guilty plea before United States District Court Judge John R. Tunheim on May 29, 2014.
In his plea agreement, Dixon admitted that on November 4, 2013, he walked into the University Avenue branch of TCF Bank in St. Paul and gave a teller a note demanding money. Following the robbery, an audit conducted by TCF Bank determined that the bank had suffered a loss of $768. Dixon also admitted that on November 9, 2013, he robbed the Lexington Parkway North branch of TCF Bank in the same manner. Following the robbery, Dixon was apprehended a short distance from the bank. When the defendant was taken into custody, he was found to have $175 on his person.
In addition to the November 4 and November 9 bank robberies, Dixon also admitted that he robbed another TCF Bank in Minneapolis on November 5, and between October 10, 2013 and November 9, 2013, engaged in a robbery spree where he robbed several retail establishments, including numerous Subway locations, a White Castle, and a Little Caesar’s Pizza restaurant.
“These repeated robbery cases are particularly troublesome,” stated United States Attorney Andrew M. Luger. “I am pleased that police were able to connect these robberies and end the defendant’s spree.”
This case is the result of an investigation by the St. Paul Police Department, the Minneapolis Police Department, the Woodbury Police Department, the Roseville Police Department, and Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kevin S. Ueland.Fridley Man Sentenced for Transporting A Minor to Engage in ProstitutionRead the Press Release
MINNEAPOLIS— Earlier this week in federal court, a 28-year-old man was sentenced for transporting a minor to engage in prostitution. On June 2, 2014, United States District Court Judge Richard H. Kyle sentenced Napoleon Long, Jr. to 180 months in federal prison on one count of Transportation With Intent to Engage in Prostitution. Long was indicted on April 10, 2013 and pleaded guilty on July 11, 2013.
In his plea agreement, Long admitted that in or about October 2011, he transported a 17- year-old girl from Minnesota to Colorado Springs, Colorado, with the intent that she engage in prostitution. Long also admitted knowing the girl was 17, and that she engaged in at least one sexual act while in Colorado and a pattern of sexual activity while working as a prostitute for him.
United States Attorney Andrew M. Luger stated that his Office was pleased with the sentence in this case. “Those such as this defendant, who profit by using underage girls in commercial sexual activity, will be prosecuted aggressively by this Office.”
This case was the result of an investigation by the Anoka County Sheriff’s Office and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorneys David P. Steinkamp and Manda M. Sertich.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/Four St. Cloud Felons Indicted for Possession of FirearmsRead the Press Release
MINNEAPOLIS — A federal grand jury has recently returned indictments charging four St. Cloud men with illegally possessing guns. On May 21, 2014, Darron Israel Shelton, Quontrell Martell Banner, and Kenneth Melvin Vinson were each charged with one count of being a Felon in Possession of a Firearm. That same day, through a separate indictment, Gregory Wimberly, Jr. was charged with two counts of being a Felon in Possession of a Firearm.
The first indictment alleges that on February 2, 2014, authorities found Shelton, Banner, and Vinson to be in possession of two guns, one C.G. Haenel .25 caliber pistol and a Bersa Thunder 9, 9 millimeter, semi-automatic pistol.
Shelton’s prior felony convictions include a drug offense, robbery, and assault. Banner has two prior robbery convictions and a drug conviction. Vinson’s prior felonies include assault, terroristic threats, and a drug conviction.
The second indictment alleges that on May 10, 2013, Wimberly was found to be in possession of a Kel-Tec 9 millimeter, semi-automatic pistol, and on March 7, 2014, he was allegedly found to be in possession of a Smith & Wesson 9 millimeter, semi-automatic pistol. Wimberly has a prior felony drug conviction.
Because the four defendants are convicted felons, they are prohibited under federal law from possessing firearms or ammunition at any time. Because of their extensive criminal history, Shelton and Banner each face a 15-year mandatory minimum sentence if convicted of the charges. Vinson and Wimberly each face a potential maximum sentence of 10 years in prison on each possession count. A federal district court judge will ultimately decide upon the appropriate sentences.
United States Attorney Andrew Luger stated that, “Our Office is working closely with law enforcement in the St. Cloud area to prosecute violent felons who are illegally possessing weapons. These cases are a significant step forward in that effort.”
These cases are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Cloud Police Department, the Waite Park Police Department, and the Central Minnesota Violent Offenders Task Force. They are being prosecuted by Assistant United States Attorneys Amber M. Brennan and Richard A. Newberry.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Woman Indicted for Assault, Interfering with Flight CrewRead the Press Release
MINNEAPOLIS— Today in federal court, a 34-year-old Fresno, California woman was arraigned for interfering with a Delta Airlines flight crew. Brandi Kristine Poulsen was charged by indictment with three counts of Interference with a Flight Crew and Attendants and one count of Assault of a Fellow Passenger.
On February 7, 2014, Poulsen was on board Delta flight 1189 travelling from Baltimore to Salt Lake City. According to the indictment, the defendant made threats against the lives of crew members, and assaulted one crew member and a passenger. The alleged offense caused the unscheduled landing of the airliner at the Minneapolis-St. Paul airport.
The maximum penalty for Interference with a Flight Crew and Attendants is 20 years’ imprisonment, as well as possible fines. All sentences are ultimately determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
St. Paul Felon Sentenced for Possession of A FirearmRead the Press Release
MINNEAPOLIS — Yesterday in federal court, a 26-year-old felon from St. Paul was sentenced for possessing a nine-millimeter semi-automatic handgun. United States District Court Judge Patrick J. Schiltz sentenced Gary James Rolfer, Jr. to 63 months in federal prison, followed by three years of supervised release, for one count of being a felon in possession of a firearm. Rolfer was indicted on August 5, 2013, and pleaded guilty on October 3, 2013.
According to the plea agreement, while responding to a “shots fired” call near a St. Paul residence, police officers observed Rolfer riding in a vehicle and holding a handgun outside of the front passenger window. During a subsequent pursuit and traffic stop, officers found an unspent nine-millimeter round in the front passenger door, but did not find the handgun. After backtracking the route taken by the vehicle, the officers found the nine-millimeter Smith & Wesson semi-automatic handgun in a back yard. Subsequent investigation found that the firearm was stolen.
Because Rolfer is a convicted felon, he is prohibited from possessing a firearm at any time. His felony records include a Ramsey County conviction for a controlled substance crime in 2005; a Hennepin County conviction for fleeing a police officer in a motor vehicle in 2005; and a Ramsey County conviction for criminal damage to property in 2006.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. It was prosecuted by Assistant United States Attorney Allen A. Slaughter.Little Falls Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS — Today in federal court, a 30-year-old Little Falls man pleaded guilty to conspiring to distribute methamphetamine. James Kelly Benson specifically pleaded guilty to one count of Conspiracy to Distribute Methamphetamine. Benson, who was indicted on February 12, 2014, entered his guilty plea before United States District Court Judge Donovan W. Frank.
In his plea agreement, Benson admitted that he had been working with others to distribute methamphetamine since June of 2012. Officers of the Central Minnesota Violent Offender Task Force (CMVOTF) also observed Benson selling methamphetamine.
On January 16, 2014, FBI agents, working with CMVOTF officers, executed a search warrant at Benson’s home; they found approximately 60 grams of methamphetamine in Benson’s garage, which he admitted to purchasing with the intent to distribute it within the state of Minnesota.
Because Benson was convicted in Meeker County of a separate felony drug offense in 2005, he faces a mandatory minimum sentence of 20 years in prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Central Minnesota Violent Offender Task Force. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.Winona Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS — Last week in federal court, a 37-year-old Winona man was sentenced for conspiring to distribute methamphetamine. United States District Court Judge Richard H. Kyle sentenced Gabriel Orion Lowther to 120 months in federal prison, followed by five years of supervised release. Lowther, who was indicted on July 8, 2013, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine.
In his plea agreement, Lowther admitted that from at least August 2012 through June 2013, he conspired with others to distribute methamphetamine from Texas to areas within southeastern Minnesota. Lowther admitted that his actions were part of a larger drug distribution enterprise which was operated by multiple conspirators between Minnesota and other areas of the United States.
This case was the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Drug Enforcement Administration, the South Central Drug Investigation Unit, and the Southeast Minnesota Narcotics and Gang Task Force. It was prosecuted by Assistant United States Attorney Allen A. Slaughter.Braham Man Charged with Mailing Threatening CommunicationsRead the Press Release
MINNEAPOLIS— A 45-year old Braham man was indicted yesterday for mailing threatening letters. Johnnie Earl Long was charged with one count of False Information and Hoaxes and six counts of Mailing Threatening Communications.
According to the indictment, in November 2013, Long allegedly mailed a series of threatening letters to numerous officials at the Pine County Courthouse. Although these letters contained a white powder that ultimately proved harmless, the letters suggested the powder contained a lethal pathogen.
If convicted, Long faces a potential maximum penalty of five years in prison on the false information count and five years on each threat count. Any sentence that may be imposed in this case would be determined by a federal district court judge.
This case is the result of an investigation by the Pine County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Charles J. Kovats, Jr.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Owner of Motley Golf Club Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS— Yesterday in federal court, Roger Martin Pedley was sentenced for evading taxes for the tax years 2006-2009. Pedley was indicted on April 9, 2013 and pleaded guilty to four counts of Tax Evasion on August 12, 2013. United States District Court Chief Judge Michael J. Davis sentenced Pedley to one year and one day in prison on each of the four counts, to be served concurrently, and ordered Pedley to pay $489,623 in restitution.
According to his plea agreement, Pedley admitted to owning and operating the Pine Ridge Golf Course in Motley as well as engaging in other business ventures. These ventures generated considerable cash income for Pedley. In his plea agreement, Pedley also admitted to engaging in transactions with this cash at various banks in ways that avoided triggering the banks’ federal currency reporting requirements. In addition, Pedley admitted that he failed to declare the cash as income on his personal income tax returns, filed jointly with his wife for tax years 2006, 2007, 2008, and 2009.
This case was the result of an investigation by the IRS- Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney John Docherty.Serial Bank Robber Sentenced to 14 Years in PrisonRead the Press Release
MINNEAPOLIS— Yesterday in federal court in St. Paul, United States District Court Judge
Susan Richard Nelson sentenced Sheikh Bilaal Muhammad Arafat, formerly known as Mark
Edward Wetsch, to 168 months in federal prison for committing a series of bank robberies in
2011 and 2012. In late April and early May 2013, Arafat, dubbed the “Man-in-Black” bank robber,
pleaded guilty to six counts of bank robbery. Arafat also admitted responsibility for 25
additional bank robberies that occurred in the southern half of Minnesota in 2011.In his plea agreement, Arafat admitted that from January 11, 2011, to January 3, 2012, he robbed 31
banks in Minnesota while wearing a black mask and brandishing a firearm believed to be real.
During the e robberies, Arafat took more than $110,000, in total, from the 31 banks.This case was the result of an investigation by the Federal Bureau of Investigation and the police
departments of Alexandria, Bloomington, Columbia Heights, Eden Prairie, Faribault, Gaylord,
Hastings, Hopkins, Minneapolis, Northfield, Orono, Prior Lake, Richfield, Savage, St. Paul, St.
Peter, and Shakopee; the sheriff’s departments of Carver, Dakota, Hennepin, Ramsey, Nicollet,
Nobles, Sibley, and Wright counties; and with assistance from the Minnesota State Patrol. The case
was prosecuted by Assistant United States Attorneys Deidre Y. Aanstad and
Kevin S. Ueland.Florida Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
MINNEAPOLIS— Last week in federal court in St. Paul, a 59-year old Leesburg, Florida man
pleaded guilty to defrauding investors and investment fund managers out of more than $2,500,000.
Gary Richard Vibbard, formerly of Wayzata, pleaded guilty to Mail Fraud. Vibbard, who was indicted
on August 21, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.In his plea agreement, Vibbard admitted that from 2008 to 2010, he engaged in a scheme to defraud
investors and investment fund managers through the sale of investments in R. Capital Advisors
(RCA), a Minnesota company created, owned, and managed by Vibbard. Vibbard admitted that, instead
of paying investors their profits as planned, RCA resorted to repaying earlier investors with
funds provided by later investors. In the plea agreement, Vibbard acknowledged that the scheme
defrauded more than 10 victims of funds totaling between $2,500,000 and $7,000,000.The U.S. Attorney’s Office and Vibbard have agreed to recommend a 63-month prison sentence to Judge
Magnuson. In addition, Vibbard will be ordered to pay restitution and could be ordered to pay a
fine. A sentencing hearing is yet to be scheduled.This case is the result of an investigation by the United States Postal Inspection Service and the
Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.US Attorney’s Visit with County Attorneys and Law Enforcement in St. CloudRead the Press Release
MINNEAPOLIS— United States Attorney Andrew M. Luger will meet with county attorneys and law enforcement officials from the central and north central regions of the state on Tuesday, May 13, 2014 in St. Cloud to discuss federal law enforcement priorities and opportunities for local, state, and federal law enforcement to work together.
Issues of regional concern will be discussed, including Mr. Luger’s focus on human trafficking as well as drug prosecutions, long a focus of federal law enforcement. Hosted by Stearns County Attorney Janelle Kendall and Stearns County Sheriff, John Sanner, the planned discussion is a law enforcement only working session to create efficiency, strengthen partnerships, and increase the effectiveness of local, state, and federal public safety resources.Man Pleads Guilty to Armed CarjackingRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 22-year-old Minneapolis man, Larry Jarrell Campbell pleaded guilty to one count of Carjacking and one count of Brandishing a Firearm During and in Relation to a Crime of Violence. Campbell, who was indicted on March 10, 2014, entered his plea before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Campbell admitted that on January 12, 2014, he approached a vehicle occupied by two victims and parked in the parking lot of a convenience store in North Minneapolis. He tapped on the rear window of the vehicle using a .22 caliber pistol and got into the back seat of the vehicle. He then pointed the gun at the two victims and threated to kill them. He demanded that the victims drive him to two separate ATMs to have the victims withdraw money from their bank accounts for him. He then commanded the victims to exit the vehicle and to lie face-down in a snowbank at gunpoint, so he could steal their vehicle. He then took the vehicle, drove to a nearby Walmart store, and attempted to use one of the victim’s credit cards to purchase merchandise.
Carjacking carries a potential maximum penalty of 15 years imprisonment. Brandishing a Firearm During and in Relation to a Crime of Violence carries a statutory minimum penalty of seven years, and a potential maximum penalty of life imprisonment. Judge Ericksen will determine the defendant’s sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Department. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.Felon Sentenced for Escaping from Federal PrisonRead the Press Release
MINNEAPOLIS— Yesterday in federal court, a 67-year-old Bloomington man was sentenced for escaping from a Federal Prison Camp in Duluth. United States District Court Judge Patrick J. Schiltz sentenced Gerald James Greenfield to an additional 18 months in federal prison.
Greenfield was serving a 50-month sentence for conspiracy to commit money laundering when he escaped from the prison facility in Duluth on March 30. The defendant was arrested on April 5 at a hotel in Burnsville.
This case was the result of an investigation by the United States Marshals Service and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Manda M. Sertich.Four Indicted for Drug Trafficking Crimes Involving A Violent Kidnapping in St. PaulRead the Press Release
MINNEAPOLIS— United States Attorney Andrew Luger announced today that a United States Grand Jury indicted four men for their roles in a large-scale, methamphetamine-trafficking organization and a violent kidnapping in St. Paul. The indictment, returned on May 5, 2014 and unsealed today, charges Jesus Ramirez, 31, of Los Angeles, CA; Jonatan Delgado Alvarez, 22, of Los Angeles, CA; Juan Ricardo Elenes Villalvazo, a.k.a. Chapo, 32, of St. Paul, MN; and Antonio Navarro a.k.a. Tony Sanchez, 19, of St. Paul, MN.
The indictment alleges that Ramirez, Alvarez, Villalvazo, and Navarro participated in a conspiracy to distribute methamphetamine. According to the indictment, Navarro and Villalvazo maintained a stash house in St. Paul for storing large amounts of methamphetamine for distribution as part of the conspiracy.
On April 14, 2014, defendants Ramirez and Alvarez flew from Los Angeles, California to Minnesota in response to a report that approximately 30 pounds of methamphetamine had been stolen from the stash house two days earlier. On the evening of April 14, the four defendants kidnapped two victims at gunpoint and held them captive against their will at the stash house. The defendants bound and beat the victims and made violent threats against their lives and the lives of their family members, while demanding information about the missing methamphetamine. According to the indictment, Villalvazo cut one of the victim’s fingers, nearly severing it, while Ramirez held the victim down. After determining that the victims had no information about the missing drugs, the defendants released them.
Upon leaving the stash house at approximately 7:30 p.m. on April 15, Navarro was arrested by law enforcement officers, who had surrounded the premises. At approximately 7:40 p.m. that night, Alvarez attempted to leave the stash house and was also arrested by law enforcement officers. In the early morning hours of April 16, Ramirez flew back to Los Angeles from the Minneapolis-St. Paul International Airport. He was arrested the following day at a hotel in a Los Angeles suburb after leading police officers on a high speed car chase.
All four defendants were charged with one count of Conspiracy to Distribute Methamphetamine. In addition, the indictment alleges that Ramirez carried a firearm and used it to kidnap and threaten the victims.
If convicted, all four defendants could face a potential maximum penalty of life in prison for the drug conspiracy charge. Ramirez faces a potential minimum penalty of seven years in prison for the firearm charge. All sentences are ultimately determined by a federal district court judge.
This case is the result of an investigation by the Safe Streets Task Force. Safe Streets is a FBI-sponsored task force that focuses on combating violent street crime as well as gang and drug-trafficking offenses. Officers from the Minneapolis Police Department and the St. Paul Police Department, who are members of the Safe Streets Task Force, were instrumental in the investigation of this case. This case is being prosecuted by Assistant United States Attorney Jeffrey S. Paulsen. The defendants will make their first appearance today at 2:00 p.m. in federal court in St. Paul before Magistrate Judge Tony N. Leung.
United States Attorney Andrew Luger commended the work of the Safe Streets Task Force. “The allegations in the indictment are a frightening reminder of the violent capabilities of drug traffickers. Safe Streets and our Office are dedicated to protecting our citizens from this type of outrageous and violent conduct.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Over 65 Charged in Largest Heroin Trafficking Investigation in Minnesota HistoryRead the Press Release
MINNEAPOLIS— Andrew Luger, United States Attorney for the District of Minnesota, and Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that over 65 heroin distributors were arrested and/or charged with state and federal drug trafficking crimes throughout the State of Minnesota. The charges are part of a joint local, state and federal drug trafficking investigation, named “Operation Exile.”
The investigation involved agents and officers from the DEA, FBI, ATF, ICE, U.S. Marshals Service, Bureau of Criminal Apprehension as well as the Sheriff’s and County Attorney’s Offices from Hennepin, Ramsey, Dakota, Anoka, Washington, St. Louis and Olmsted counties. The local police departments in all seven counties were involved as well. In addition to the over 65 arrests, agents and officers conducted dozens of search warrants at locations throughout the state to gather evidence in support of the heroin trafficking prosecutions that will follow today’s events.
Mr. Luger praised the DEA for bringing local, state and federal law enforcement together to coordinate efforts to combat heroin trafficking. “In recent years, high purity inexpensive heroin in powder form has been imported to Minnesota in large quantities. Operation Exile is a coordinated law enforcement campaign to investigate and prosecute heroin traffickers at all levels in Minnesota. Our goal is to make it as difficult as possible for drug cartels to bring heroin to our state.”
The United States Attorney’s Office has been working with law enforcement at the local, state and federal levels to prepare for Operation Exile. Federal and State prosecutors will determine over the coming days which jurisdiction will prosecute the approximately 65 traffickers charged today.
Luger noted how heroin abuse has become a significant problem in a number of states around the country. Luger stated that law enforcement is determined to prevent Minnesota from becoming the next state to face such a crisis.
“Our goal is to tackle the problem of heroin addiction before heroin traffickers become embedded in our community. Operation Exile is an important step in making Minnesota off limits to large scale heroin distributors,” said Luger.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
White Earth Felon Sentenced for Domestic Assault, Possession of A Short-barreled ShotgunRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 24-year-old felon was sentenced for assaulting a White Earth woman as well as possessing a short-barreled shotgun. United States District Judge John R. Tunheim sentenced Michael James Deegan to 92 months and 60 months (concurrent) in federal prison on one count of possession of an unregistered firearm and one count of assault resulting in substantial bodily injury. Deegan, who was indicted on September 24, 2013, pleaded guilty on December 16, 2013.
In his plea agreement, Deegan admitted that on June 4, 2013, he assaulted a woman on the White Earth Indian Reservation by punching her in the head and body. This resulted in substantial bodily injury to the victim. Deegan also admitted to possessing a short-barreled shotgun at the time of his arrest.
This was the first case accepted from White Earth under an assumption of concurrent jurisdiction that commenced on June 1, 2013. This case was a result of an investigation by the Federal Bureau of Investigation, the White Earth Tribal Police Department, and the Mahnomen County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.Because the White Earth Indian Reservation is a concurrent jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the White Earth Tribal Police Department and local County Sheriff’s Offices. Those cases are prosecuted by the U.S. Attorney’s Office.
Federal Jury Convicts Ponemah Man for Strangling A WomanRead the Press Release
MINNEAPOLIS—Earlier today, a jury in federal court in Duluth found a 47-year-old Ponemah man guilty of strangling a woman while on the Red Lake Indian Reservation. Following a three-day trial, the jury convicted Terry Dean Iceman on one count of strangulation. Iceman was indicted on November 13, 2013.
According to the evidence presented at trial, on July 18, 2013, Iceman assaulted the victim by strangling and attempting to strangle her. For his crime, Iceman faces a potential maximum penalty of 10 years in prison. United States District Chief Judge Michael J. Davis will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Deidre Y. Aanstad.
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/.Federal Jury Finds North Oaks Man Guilty of Defrauding Investors Out of $1.5 Million in Wind Energy ProjectRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a jury found a 52-year-old North Oaks man guilty of defrauding investors to persuade them to invest in a purported wind energy project. Instead of building the wind energy project, the defendant used the investors’ $1.5 million to pay for his personal expenses and his other wind energy projects. On April 1, 2014, following a six-day trial, the jury convicted Gregory Joseph Jaunich on five counts of mail fraud. Jaunich was indicted on July 16, 2013.
According to the evidence presented at trial, from October 2006 through January 2007, Jaunich solicited funds from individual investors and investor groups for the purchase of membership units in Averill Wind, a company Jaunich created to develop and operate a wind energy project in Clay County, Minnesota. To induce these investments, Jaunich made false material representations concerning the project’s status, including telling them that the project was closer to completion than what was actually the case. In addition, Jaunich failed to disclose that at the time he was soliciting investments in Averill Wind, he was under criminal investigation by federal law enforcement for fraudulently overbilling Xcel Energy for wind energy production.
From October 2006 through January 2007, Jaunich received more than $1.5 million from investors. Jaunich told investors that the funds would be used to develop, operate and maintain the Averill project. Instead, Jaunich diverted almost all of the funds to his own personal use, to pay personal expenses and debts, and to pay expenses and debts relating to other wind energy projects. To keep the scheme from being discovered, in April 2007 and June 2008, Jaunich mailed letters to the investors containing false information about the status of the Averill Project and the use of the investors’ money via the United States Postal Service.
For his crimes, Jaunich faces a potential maximum penalty of 20 years in prison on each count. U.S. District Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Kimberly A. Svendsen and John Kokkinen.
To learn more on how to protect yourself from mail fraud, visit http://www.stopfraud.gov/protect-massmarket.html.Federal Jury Convicts Red Lake Man for Assaulting an InfantRead the Press Release
MINNEAPOLIS—Last week in federal court in Fergus Falls, a jury found a 40-year-old Red Lake man guilty of assaulting an infant while on the Red Lake Indian Reservation. On March 13, 2014, following a four-day trial, the jury convicted James White, Jr., on one count of assault resulting in serious bodily injury. White was indicted on October 22, 2013.
According to the indictment and evidence presented at trial, on August 30, 2013, White assaulted the infant. For his crime, White faces a potential maximum penalty of life in prison. United States District Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
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.Federal Jury Convicts Man for Tax EvasionRead the Press Release
MINNEAPOLIS—Last week, a federal jury found a former executive of a Minnesota-based multi-level marketing company guilty of conspiracy to defraud the United States, tax evasion and failing to file federal tax returns. On March 14, 2014, following a seven-day trial, the jury convicted Michael Andrew Schlegel on one count of conspiracy to defraud the U.S., three counts of tax evasion and three counts of failure to file tax returns. Schlegel was indicted on April 9, 2013.
According to the indictment and evidence presented at trial, from 2002 through 2010, Schlegel, and his co-defendant Bradley Mark Collin, conspired with each other and others to defraud the U.S. by obstructing the Internal Revenue Service (“IRS”) in its lawful collection and assessment of individual income taxes. To that end, Schlegel failed to make any payments toward the back taxes, interest and penalties levied against him in 2000, which totaled more than $600,000. Both defendants also failed to file federal individual tax returns for tax years 2002-2009, pursuing “tax protestor” ideologies. On December 23, 2013, Collin pleaded guilty to one count of conspiracy to defraud the U.S.
From 2002 to 2009, Schlegel controlled NatureRich, Inc., a multi-level marketing company that sold natural and health-related products. Like similar companies, NatureRich paid commissions to salespeople based on direct sales and on the sales of downstream salespeople. At various times between 2002 and 2009, Schlegel and Collin received wages and commission payments from NatureRich that totaled more than $400,000. Schlegel also caused NatureRich to pay his commissions to a nominee trust called the “Andrew James Living Trust,” from which he then paid his family’s expenses. During that time, Schlegel also operated a painting business, receiving more than $400,000 in income from painting contracts.
In 2004, the defendants, through the use of nominee entities, began engaging the “warehouse” banking services of Olympic Business Systems and Century Business Concepts. “Warehouse” banking refers to the use of one or more bank accounts in which the funds of multiple clients are deposited, thereby concealing the true source of the funds.
The defendants also filed misleading federal corporate tax returns in the name of NatureRich in an effort to conceal the true extent of their personal interest in and the income derived from NatureRich. In all, the defendants attempted to conceal at least $3 million in gross income from the IRS, thereby avoiding income taxes on that income and also avoiding having those funds seized for payment of their previous tax debts.
For his crimes, Schlegel faces a potential maximum penalty of five years in prison on the conspiracy count, five years on each tax evasion count, and one year on each count of failure to file a tax return. Collin faces a potential maximum penalty of five years. U.S. District Judge Patrick J. Schiltz will determine their sentences at a future hearing, yet to be scheduled.
This case is the result of an investigation by the IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and John E. Kokkinen.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Minneapolis felon charged with possessing shotgun
James Reedus Berry, age 53, of Minneapolis, is charged with one count of being a felon in possession of a firearm and one count of possession of an unregistered firearm. Because he is a felon and three or more of his prior convictions were for violent or drug crimes, Berry is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction.
If convicted, Berry faces a potential maximum penalty of ten years in prison on the unregistered firearm count. This case is the result of an investigation by the Minneapolis Police Department, and United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.Former postal employee charged with theft of mail
Debra Sue Morrow, age 60, of Faribault, was charged with one count of theft of mail by postal employee.
If convicted, Morrow faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the U.S. Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.Minneapolis felon charged with possessing five firearms
James Herman Pegues, age 48, of Minneapolis, was charged via a superseding indictment with one count of being a felon in possession of a firearm. Because he is a felon and three or more of his prior convictions were for violent or drug crimes, Pegues is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction.
If convicted, Pegues faces a potential maximum penalty of life in prison. This case is the result of an investigation by the Fridley Police Department, and ATF. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Minneapolis man charged with receiving, distributing and possessing child pornography
Michael Thomas Schnapp, age 30, of Minneapolis, was charged with one count of receipt of child pornography, one count of distribution of child pornography, one count of attempted distribution of child pornography, and one count of possession of child pornography.
If convicted, Schnapp faces a potential maximum penalty of 40 years in prison on the receipt, distribution and attempted distribution counts, and 20 years on the possession count. This case is the result of an investigation by the Minneapolis Police Department and the Minnesota Internet Crimes Against Children Task Force. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Distribution, receipt and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.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. Attorneys’ 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.”
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Felon charged with possessing a .45-caliber pistol
Trevor James Beckman, age 30, unknown address, is charged with one count of being a felon in possession of a firearm. Because he is a felon and three or more of his prior convictions were for violent crimes, Beckman is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction.
If convicted, Beckman faces a potential maximum penalty of life in prison. This case is the result of an investigation by the Rochester Police Department, and United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It is being prosecuted by Assistant U.S. Attorney Carol M. Kayser.Minneapolis felon charged with possessing a nine-millimeter pistol
Andre Maurice Cox, age 41, of Minneapolis, was charged with one count of being a felon in possession of a firearm.
If convicted, Cox, also known as Anthony White, faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the Minneapolis Police Department, and the ATF. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.St. Paul felon charged with possessing a nine-millimeter pistol
Michael Anthony Vargas, age 31, of St. Paul, was charged with one count of being a felon in possession of a firearm. Because he is a felon and three or more of his prior convictions were for violent crimes and/or drug trafficking, Vargas is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction.
If convicted, Vargas faces a potential maximum penalty of life in prison. This case is the result of an investigation by the St. Paul Police Department, and ATF. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Jose De Jesus Sanchez, age 44, a citizen of Mexico, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for a felony.
If convicted, Sanchez faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Red Lake man charged with assault
Donald Scott Whitefeather, age 65, of Red Lake, was charged with one count of assault resulting in serious bodily injury and one count of assault with a dangerous weapon.
If convicted, the defendant faces a potential maximum penalty of ten years in prison on each count. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Little Falls man charged with conspiring to distribute methamphetamine
James Kelly Benson, age 30, of Little Falls, was charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
If convicted, Benson faces a potential maximum penalty of life in prison on the conspiracy count and 20 years on the possession count. This case is the result of an investigation by the Federal Bureau of Investigation and the Central Minnesota Violent Offender Task Force. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.Arkansas man charged with bank robbery
Kenja Omar Deangelo Carmichael, age 35, of West Memphis, Arkansas, was charged with one count of bank robbery.
If convicted, Carmichael faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the FBI and the Duluth Police Department. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.Man charged with identity theft
Keith Michael Novak, age 25, unknown address, was charged by Information with one count of identity theft.
If convicted, Novak faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the FBI. It is being prosecuted by Assistant U.S. Attorneys Charles Kovats and Andrew R. Winter.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Delfino Guadarrama-Miranda, age 57, a citizen of Mexico, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for a felony.
If convicted, Gutierrez-Garcia faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Three people charged with conspiracy to distribute marijuana
Alexander Edward Heying, age 31, and Peter Gregory Heying, age 27, both of Minnetonka; and Acacia Lauren Ruiz, age 33, of Ukiah, California, are each charged with one count of conspiracy to distribute marijuana and one count of conspiracy to commit money laundering.
If convicted, the defendants face a potential maximum penalty of life in prison on the marijuana count and 20 years on the money laundering count. This case is the result of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigations, the West Metro Drug Task Force, the Hennepin County Sheriff’s Office, the West Hennepin Public Safety Department, and the police departments of Medina and Orono. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Hastings felon charged with possessing firearms and ammunition
Samuel David Shoen, age 35, of Hastings, was charged with three counts of being a felon in possession of a firearm, two counts of being a felon in possession of ammunition, one count of possession with intent to distribute methamphetamine, and one count of possession of a firearm during and in relation to a drug-trafficking crime.
If convicted, Shoen faces a potential maximum penalty of 20 years in prison on the methamphetamine count, a consecutive five years on the possession of a firearm during and in relation of a drug-trafficking crime count, and ten years on each of the remaining counts. This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Bradley M. Endicott.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Jose Israel Gutierrez-Garcia, age 28, a citizen of Mexico, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for a felony.
If convicted, Gutierrez-Garcia faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.St. Paul felon charged with possessing shotgun, ammunition
Michael John Walker, age 45, of St. Paul, was charged with one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition. Because he is a felon and three or more of his prior convictions were for violent crimes, Walker is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction on either or both of the charges.
This case is the result of an investigation by the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Minnesota U.S. Attorney’s Office Collected More Than $16.7 Million in Civil and Criminal Actions; Forfeited More Than $22 Million in Assets in Fiscal Year 2013Read the Press Release
MINNEAPOLIS—Acting United States Attorney John R. Marti announced today that the U.S. Attorney’s Office for the District of Minnesota collected $16,782,266.24 in criminal and civil actions in Fiscal Year 2013. Of this amount, $8,237,258.34 was collected in criminal actions and $8,545,007.90 was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the District of Minnesota, working with partner agencies and divisions, collected $22,127,398 in asset forfeiture actions in Fiscal Year 2013. Forfeited assets are deposited into the Department of Justice and Treasury Assets Forfeiture Funds, and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Additionally, Minnesota’s U.S. Attorney’s Office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $458,000 in civil cases pursued jointly with these offices. Nationwide, the U.S. Attorney’s Offices collected $8.1 billion in criminal and civil actions during Fiscal Year 2013. A portion of this amount, $5.9 billion, was collected in shared cases in which one or more U.S. Attorney’s Offices or department litigating divisions were also involved. The $8.1 billion represents nearly three times the approximately $2.76 billion of the department’s direct appropriations that pay for the 94 U.S. Attorneys’ offices and its main litigating divisions., and it is the second-largest collection year in the department’s history, trailing only Fiscal Year 2012 when $13.1 billion was collected.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Eric Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
In making today’s announcement, Marti said, “The public dialogue is often focused on the cost of government. But one fact often ignored is that attorneys and staff of this office and the Department of Justice regularly recoup funds owed to the government and crime victims in amounts that far exceed our annual budgets. These recoveries come from many sources and are essential and valuable in these challenging economic times.”
One of the largest civil recoveries obtained by Minnesota’s U.S. Attorney’s Office during Fiscal Year 2013 came from MTS Systems Corporation. In 2008, MTS pled guilty to two misdemeanor counts of knowingly submitting false or misleading export control filings to the U.S. Department of Commerce. Notwithstanding its plea agreement, MTS certified several times during the next three years that it had not been convicted of various criminal violations, including “falsification of records” and “making false statements,” within the preceding three years. MTS allegedly used those false certifications to win millions of dollars in government contracts. The Minnesota U.S. Attorney’s Office commenced suit against MTS under the False Claims Act, and to resolve the civil case, MTS paid $7.75 million.
A second civil recovery in Minnesota stemmed from a case against Bioscrip, a national specialty pharmacy services provider with a large mail-order component. The lawsuit commenced by the U.S. Attorney’s Office contended that Bioscrip failed to refund credit balances, failed to maintain prescriptions on file, and billed for products not provided. Bioscrip paid $5.06 million to settle the civil case.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the U.S. recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Brooklyn Park man charged with bank robbery
Tearise Breon Baugh, age 23, of Brooklyn Park, was charged with one count of armed bank robbery and one count of brandishing a firearm during and in relation to a crime of violence.
If convicted, Baugh faces a potential maximum penalty of 25 years in prison on the bank robbery count, and a mandatory consecutive penalty of seven years on the brandishing count. This case is the result of an investigation by the Blaine Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Andrew Dunne and Manda M. Sertich.Three men charged with conspiring to possess with intent to distribute over 5 kilograms of methamphetamine
Jorge Urbina Murguia, age 51, Heriberto Plancarte-Barrigan, age 19, and Gilberto Hernandez-Betancourt, age 22, were each charged with one count of conspiracy to possess with intent to distribute methamphetamine. In addition, Plancarte-Barrigan and Hernandez-Betancourt were each charged with one count of attempted possession with intent to distribute methamphetamine.
If convicted, the defendants each face a potential maximum penalty of life in prison. This case is the result of an investigation by the United States Drug Enforcement Administration.St. Paul man charged with possessing a Molotov cocktail
Michael John Walker, age 45, of St. Paul, was charged with one count of possession of an unregistered firearm or destructive device.
If convicted, Walker faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Minneapolis felon charged with possessing a nine-millimeter handgun
Randolph Seth Anderson, age 42, of Minneapolis, is charged with one count of being a felon in possession of a firearm. Because he is a felon and three or more of his prior convictions were for violent crimes, Anderson is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction.
This case is the result of an investigation by the Minneapolis Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.El Salvador citizen charged with illegal re-entry into U.S.
Ana Maria Ortiz, age 43, a citizen of El Salvador found in the Minnesota Correctional Facility in Shakopee, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for an aggravated felony.
If convicted, Ortiz faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Honduras citizen charged with illegal re-entry into U.S.
Jorge Alberto Ortiz-Martinez, age 48, a citizen of Honduras, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for an aggravated felony.
If convicted, Ortiz-Martinez faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.Man charged with escaping from custody
Leland Wayne Thompson, age 35, of South Dakota, was charged with one count of escape from custody.
If convicted, Thompson faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Severo De Santiago De La Cruz, age 33, a citizen of Mexico found in Lyon County, Minnesota, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for an aggravated felony.
If convicted, De La Cruz faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.Minneapolis man charged with possessing with intent to distribute methamphetamine
Isreal Landa-Leon, age 28, of Minneapolis, is charged with one count of possession with intent to distribute methamphetamine.
If convicted, Landa-Leon faces a potential maximum penalty of 40 years in prison. This case is the result of an investigation by the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Man charged with robbing several banks
Maurice Dixon, age 46, no known address, was charged with three counts of bank robbery and one count of interference with commerce by robbery, pursuant to the Hobbs Act.
If convicted, Dixon faces a potential maximum penalty of 20 years in prison on each count. This case is the result of an investigation by the Federal Bureau of Investigation, and the police departments of Minneapolis, Roseville and St. Paul. It is being prosecuted by Assistant U.S. Attorney Kevin S. Ueland.Mexican citizen charged with illegal re-entry into U.S.
Adain Salcido-Perez, a citizen of Mexico found in Richfield, Minnesota, is charged with one count of illegally re-entering the United States after previously being deported.
If convicted, Salcido-Perez faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.Federal Agents Honored by U.S. Attorney for Their Efforts Against Bank Fraud, Identity TheftRead the Press Release
MINNEAPOLIS—Identity theft is one of the fastest growing crimes in America, and in 2013, 32 members of a large, multi-state, identity theft ring were prosecuted and sentenced. Earlier today, the United States Attorney’s Office for the District of Minnesota recognized the hard work and dedication of the federal investigators who headed the lengthy investigation and prosecution of these individuals.
Special Agent Kelly Petricka, of the Internal Revenue Service’s Criminal Investigations (“IRS-CI”) was presented with the 14th annual U.S. Attorney’s Office Law Enforcement Recognition Award. Agent Petricka, as well as Inspector Barry Bouchie, of the U.S. Postal Inspection Service (“USPIS”) and Russ Wicklund, Assistant Chief of the Baxter Police Department, also received the Office’s Justice Award.
During the ceremony, Acting U.S. Attorney John R. Marti praised the award recipients, saying, “These agents do not seek out awards or medals, but perform their duties because they care deeply about public safety for their neighbors and communities. What they accomplished in this investigation matters and is remarkable.”Marti recognized Agent Petricka’s outstanding career of contributions to public safety in the District of Minnesota, saying “Kelly Petricka is an exemplary public servant, and we should all be grateful for her service.” Criminal Chief Nicole Engisch also praised Special Agent Petricka, saying “Kelly Petricka makes prosecutors and other agents better. She successfully handles the most difficult investigations in a manner that is amazing.”
The U.S. Attorney’s Office Law Enforcement Award is presented annually to a local, state, or federal law enforcement agent or officer who has performed outstanding work on significant federal cases over an extended period. In addition, the recipient of the award must exemplify the cooperative spirit Minnesotans have come to expect from local, state, and federal law enforcement.
The Justice Award recognizes outstanding achievement by investigative teams in individual civil and criminal cases. The investigative team must have performed above and beyond the normal high standards set for these cases and their efforts must be of a distinctive character.
The prosecution of the identity theft ring, dubbed Operation Masquerade, started in 2011 and involved more than 100 individuals participating in a conspiracy to defraud banks, bank customers and businesses during a five-year period. The co-conspirators used victim information to create counterfeit checks and false identification documents to conduct fraudulent transactions at retail establishments, where expensive merchandise was purchased and returned for cash. At banks, the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions in Minnesota and at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole information from their places of employment, from people employed at area banks, from those who stole information from mail, during vehicle break-ins, and through business burglaries, among other sources. Operation Masquerade was prosecuted by Assistant U.S. Attorneys Karen Schommer and Michelle Jones.
Following today’s ceremony, Kelly R. Jackson, Special Agent in Charge of the IRS-CI’s St. Paul Field Office, said, “Special Agent Kelly Petricka embodies all that the public should expect in law enforcement officers and public servants. She is a shining example of what an IRS criminal investigator brings to the table on financial fraud investigations. Her dedication and keen investigative skills exemplify the best in federal law enforcement, and she is truly worthy of being the 2013 federal law enforcement officer of the year.”
Petricka has been with IRS-CI for 18 years, and has worked complex tax fraud, money laundering and identity theft cases.
Following today’s ceremony, Keith Hayden, Mail Fraud Team Leader for the USPIS’s Minnesota office, said, “Inspector Bouchie works tirelessly to protect the U.S. Mail and its customers.”Bouchie has been with the USPIS for 18 years, and has investigated numerous cases involving mail fraud, mail theft, identity theft, revenue fraud and internal crimes.
The award ceremony, which took place at the U.S. Attorney’s Office in Minneapolis, was attended by the award recipients, their families and friends, as well as many law enforcement colleagues.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Alonzo Cid-Escatel, age 36, a citizen of Mexico found in Pipestone, Minnesota, is charged with one count of illegally re-entering the United States after previously being deported.
If convicted, Cid-Escatel faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Minneapolis man charged with possessing with intent to distribute methamphetamine
Isreal Landa-Leon, age 28, of Minneapolis, is charged with one count of possession with intent to distribute methamphetamine.
If convicted, Landa-Leon faces a potential maximum penalty of 40 years in prison. This case is the result of an investigation by the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Arizona man charged with filing a false tax return
Brian Christopher Neary was charged with one count of filing a false tax return. If convicted, Neary faces a potential maximum penalty of three years in prison. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney David J. MacLaughlin.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, returned the following indictments yesterday. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Crystal man charged with robbing Roseville bank
Jake Charles Cogswell, age 30, of Crystal, was charged with one count of armed bank robbery and one count of brandishing a firearm in furtherance of a crime of violence. If convicted, Cogswell faces a potential maximum 25 years in prison on the bank robbery count. In addition, he faces a mandatory consecutive seven years on the brandishing a firearm count. This case is the result of an investigation by the Federal Bureau of Investigation and the Roseville Police Department. It is being prosecuted by Assistant United States Attorney Nathan P. Petterson.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, returned the following indictments yesterday. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Arnoldo Aguirre-Vasquez, age 44, a citizen of Mexico found in Renville, Minnesota, is charged with illegally re-entering the United States after previously being deported. If convicted, Aguirre-Vasquez faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Kentucky man charged with robbing Eagle Lake bank
George Richard Gaunt, age 25, of Louisville, Kentucky, was charged with one count of bank robbery.
If convicted, Gaunt faces a potential maximum penalty of 25 years in prison. This case is the result of an investigation by the Federal Bureau of Investigation, the Eagle Lake Police Department and the Blue Earth County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.Rochester felon charged with gun crime
James Kent Johnson, age 34, of Rochester, was charged with one count of being a felon in possession of a firearm. Since Johnson’s prior felony convictions were for violent crimes, he is subject to the federal armed career criminal statute in the current federal case. That statute mandates a minimum sentence of 15 years in federal prison upon conviction. This case is the result of an investigation by the Olmsted County Sheriff’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
Frank Vennes Sentenced to 15 Years in Federal Prison for Lying to Investors About Petters’ Ponzi SchemeRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, Frank Elroy Vennes, Jr. was sentenced to 180 months in prison in connection with fraudulently raising money from individuals and through hedge funds for investment in Petters Company, Inc. (“PCI”). Vennes was a long-time associate of Thomas J. Petters, the Minnseota businessman who was convicted in 2009 of orchestrating a $3.65 billion Ponzi scheme. United States District Court Judge Richard H. Kyle sentenced Vennes, age 56, of Stuart, Florida, on one count of securities fraud and one count of money laundering. On July 11, 2011, Vennes was charged in a second superseding indictment, and on February 1, 2013, he pleaded guilty to those charges.
From 1995 through September of 2008, Vennes, individually and through his company, Metro Gem, obtained money from others for investment in PCI notes. He also assisted in the formation of hedge funds, known as the Arrowhead Funds, to help raise additional funds for that same purpose. Beginning in 2001 and proceeding through September 24, 2008, he aided and abetted individuals associated with the Arrowhead Funds in making fraudulent misrepresentations to investors regarding investments in PCI.
PCI was owned and operated by Tom Petters, who operated the Ponzi scheme by representing that money invested in PCI promissory notes would finance the purchase of electronics and other consumer merchandise. Purportedly, PCI would resell that merchandise for a profit to certain “big box” retailers, including Sam’s Club and Costco. In truth, however, no merchandise was bought or resold. Instead, Petters diverted hundreds of millions of dollars for his own benefit and the benefit of his co-conspirators. Petters’ Ponzi scheme unraveled in 2008, when federal agents executed search warrants at his business office and other locations.
Beginning in 2000, Vennes worked to form hedge funds to solicit investors in PCI, including Arrowhead Capital Partners II, L.P. and Arrowhead Capital Finance, Ltd., collectively known as the Arrowhead Funds, and Palm Beach Finance Partners, L.P. and Palm Beach Finance II, Ltd., collectively known as the Palm Beach Funds. Because he had a federal criminal record, having been previously convicted on federal narcotics, firearms, and money laundering charges, he had difficulty obtaining funding on his own. As a result, he worked through the Arrowhead Funds and the Palm Beach Funds when trying to solicit money from banks and institutional investors.
From 1999 through September 2008, all paperwork and communication between PCI and the Arrowhead Funds and Palm Beach Funds went through Vennes or one of his employees. At the same time, Vennes received “commissions” from Petters for brokering deals involving both Funds. His commissions were based on the amount of money he raised for Petters and PCI. Between 2001 and 2008, Vennes received more than $100 million in commissions.
During that same time period, Vennes knew that those acting on his behalf were making material misrepresentations and omissions to investors in the Arrowhead and Palm Beach Funds and did nothing to correct the situation. Investors were told, for example, that whenever a retailer purchased consumer electronics or other goods from PCI, those products were paid for by the retailer with funds directly deposited into a bank account under the control of a management company. Thus, investors were falsely assured that all PCI transactions were, in fact, taking place, and all money was secure. However, Vennes, among others, was well aware that no payments were ever received from retailers and, instead, came from PCI alone. Furthermore, investors were never informed of Vennes’ criminal record or his involvement in the Arrowhead and Palm Beach Funds’ transactions. And, finally, they were kept unaware that in late 2007 and early 2008, the PCI notes held by the Arrowhead and Palm Beach Funds were delinquent and were approaching default.
On October 11, 2013, Vennes’s co-defendant in this case, James Nathan Fry, age 60, of Orono, Minnesota, was sentenced to 210 months in prison on five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the U.S. Securities and Exchange Commission during its investigation of investments in PCI by hedge funds under the management of Fry’s company, Arrowhead Capital Management. Fry was convicted on June 12, 2013.
On October 25, 2013, sentencing is scheduled for the investment managers of the Palm Beach Funds, who have pleaded guilty to committing fraud in connection to this scheme by making material misrepresentations to investors in their hedge funds concerning investments in PCI. David William Harrold, age 54, of Del Ray Beach, Florida, and Bruce Francis Prevost, age 53, of Palm Beach Gardens, Florida, await sentencing, each on four counts of securities fraud.
This case was the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigations, and the U.S. Postal Inspection Service. It was prosecuted by Assistant U.S. Attorneys Timothy C. Rank, Kimberly A. Svendsen, and Robert M. Lewis.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive attack on financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement, who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force hopes to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.
Three Sentenced in Connection with 2011 New Year Day Robbery and Killing on Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, three individuals were sentenced for their roles in the murder of a couple on the Red Lake Indian Reservation on New Year’s Day 2011. United States District Judge Donovan W. Frank sentenced David John Martin, age 46, of Columbia Heights, to 160 months in prison on one count of robbery; and Kevin John Needham, age 21, of Red Lake, to 90 months in prison on one count of robbery. Yesterday, Terin Rene Stately, age 25, also of Red Lake, was sentenced to 40 months in prison on one count of aiding and abetting robbery.
On January 15, 2013, Martin and Needham were charged in a superseding indictment. Martin was convicted on March 12, 2013, and Needham pleaded guilty on February 26, 2013. Stately was indicted on August 16, 2012, and pleaded guilty on November 15, 2012.
On June 21, 2013, their co-defendant Geshik-O-Binese Martin, age 30, of Red Lake, was sentenced to life in prison on two counts of murder in the first degree, two counts of murder in the second degree, and one count of robbery. He was also convicted on March 12, 2013.The trial evidence proved that on January 1, 2011, Craig David Roy and Darla Ann Beaulieu were killed while money and illegal drugs were stolen from Roy’s reservation residence. The bodies of Beaulieu and Roy were found in the remains of the house, which was destroyed by fire on that same day. Autopsies determined that the victims were killed as a result of multiple stab wounds and not the fire itself.
In his plea agreement, Needham admitted that he agreed to travel with Stately, the Martins, and another co-defendant to Roy’s residence, the intention being to take money and cocaine by force. Among other things, Needham admittedly stood in the driveway of the Roy residence during the robbery.
In her plea agreement, Stately admitted driving the group to and from the Roy residence and waiting in the vehicle during the robbery. She also admittedly knew of the plan to rob Roy.
This case was the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department, with assistance from the Minnesota Bureau of Criminal Apprehension and the State Fire Marshal. It was prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Nathan P. Petterson.
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.Minnetonka Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 36-year-old Minnetonka man pleaded guilty to distributing child pornography. Jonathan Charles Otto pleaded guilty to one count of distribution of child pornography. Otto, who was indicted on July 23, 2013, entered his plea before United States District Judge Richard H. Kyle.
In his plea agreement, Otto admitted that on December 27, 2010, he distributed images and videos containing visual depictions of minors engaging in sexually explicit conduct. In addition, Otto admitted that he possessed more than 45,000 images and more than 3,800 videos of similar material. Some of the images and videos portrayed sadistic or masochistic conduct or other depictions of violence.
For his crime, Otto faces a potential maximum penalty of 20 years in prison, with a mandatory minimum penalty of five years. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, with cooperation from the Minnetonka Police Department and the London Metropolitan Police Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Distribution and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
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 U.S. Attorney offices and the Justice Department’s Criminal Division, 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.”Minneapolis Felon Sentenced for Possessing A .44-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 28-year-old felon from Minneapolis was sentenced for possessing a .44-caliber revolver. United States District Judge Ann D. Montgomery sentenced Eugene Denzel Johnson to 80 months in prison on one count of being a felon in possession of a firearm. Johnson was indicted on November 20, 2012, and pleaded guilty on May 13, 2013.
In his plea agreement, Johnson admitted that on September 5, 2012, he was riding in a vehicle that police attempted to stop following a traffic violation. Johnson jumped from the passenger side of the vehicle and ran, a gun tucked in his waistband. Spotting the gun as Johnson exited the vehicle, police gave chase, ultimately apprehending him a short time later. Officers recovered the gun after using a trained canine to trace the path that Johnson had taken.
Because he is a felon, Johnson is prohibited under federal law from possessing firearms at any time. He was previously convicted in Hennepin County on charges of first-degree aggravated robbery (2005 and 2010), in Ramsey County on charges of theft of a motor vehicle (2003), and in Dakota County on charges of criminal damage to property (2003).This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Amber M. Brennan.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than two dozen serious habitual criminals through Project Exile Minneapolis.