District of Minnesota
Press releases recorded for this federal judicial district.
Rochester Woman Pleads Guilty to Defrauding Elderly Couple Out of $840,000Read the Press Release
MINNEAPOLIS—Earlier today in federal court, a 61-year-old Rochester woman pleaded guilty to defrauding an elderly couple out of more than $840,000. Carolyn Jean Cassar pleaded guilty to one count of wire fraud. Cassar, who was charged in a superseding indictment on July 23, 2013, entered her plea before United States District Court Judge Joan N. Ericksen.
In her plea agreement, Cassar admitted that from May 2006 through September 2012, she executed a scheme to obtain money through false and fraudulent pretenses. Cassar specifically admitted that she induced an elderly couple to provide her with money by falsely representing that she needed the funds to travel to Washington, D.C., to attend to the affairs of her recently deceased daughter. She also falsely represented that she needed money to travel to Italy to, among other things, prosecute a former business agent who had defrauded her. In addition, Cassar told the elderly couple that she expected to receive an inheritance from her father’s estate, which she would use to repay the funds loaned her. To support her false representations, Cassar provided the fraud victims with airline itineraries for her flights to Italy.Cassar actually used the funds she took from the elderly couple to (1) vacation in Europe with her son and others; (2) take design professionals to Italy to study its architecture in preparation for designing a home for herself; (3) pay an architect to draw plans for a villa-style house; and (4) to pay for interior design services.
For her crime, Cassar faces a potential maximum penalty of 20 years in prison. Judge Ericksen will determine her 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 Rochester Police Department. It is being prosecuted by Assistant U.S. Attorneys Katharine T. Buzicky, Tracy L. Perzel, and Kimberly A. Svendsen.Superior, Wisconsin, Woman Sentenced for Assaulting Another Woman in Retaliation for Being A Government WitnessRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 23-year-old inmate was sentenced for retaliating against another inmate for being a government witness in a drug-trafficking trial. On July 23, 2013, United States District Court Judge David S. Doty sentenced Veronique Zsa zsa Antique Muckle to 121 months in prison on one count of federal witness retaliation. Muckle was indicted on September 11, 2012, and was convicted on April 12, 2013.
According to the indictment and evidence presented at trial, Muckle assaulted Angelique Michelle Vos on August 14, 2012, following Vos’ return to the Sherburne County Jail, after Vos testified as a government witness during a narcotics trial of Lawrence Lalonde Colton. Muckle, Vos, and more than three dozen others pleaded guilty for their roles in a large-scale drug-trafficking organization that transported prescription pills and heroin from Detroit to the Twin Ports region in Minnesota. In September 2011, the organization was brought down after it was investigated by the Lake Superior Drug and Violent Crime Task Force and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
Beginning on August 12, 2012, Colton was on trial for his role in the drug-trafficking activity. At the time, Muckle and Vos were held separately in the Sherburne County Jail. Muckle was already sentenced to 52 months in prison for her participation in the original drug conspiracy, and was awaiting placement in the federal prison system. When Vos returned from federal court on August 14, 2012, Muckle ran from a segregated area of the facility and violently attacked Vos for testifying against Colton earlier that day. Colton was later convicted.
This case was the result of an investigation by the Sherburne County Sheriff’s Office, the Lake Superior Drug and Violent Crime Task Force, the Duluth Police Department, and the ATF. It was prosecuted by Assistant U.S. Attorneys Allen A. Slaughter and Amber M. Brennan.Apple Valley Woman and Farmington Man Sentenced for Armed Robbery of Northfield HotelRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 23-year-old Apple Valley woman was sentenced in connection with the armed robbery of America’s Best Value Inn and Suites in Northfield. United States District Court Judge Paul A. Magnuson sentenced Julie Ann Campana to 36 months in prison on one count of aiding and abetting interference with commerce by robbery. Campana was indicted on December 3, 2012, and pleaded guilty on April 2, 2013.
On July 17, 2013, Campana’s co-defendant Eric Wayne Forcier, age 27, of Farmington, was sentenced to 240 months on two counts of interference with commerce by robbery pursuant to the Hobbs Act; one count of using, carrying, possessing and brandishing a firearm during and in relation to a crime of violence; and one count of being a felon in possession of a firearm. He also pleaded guilty on April 2, 2013.
In his plea agreement, Forcier admitted that on October 29, 2012, he entered the hotel wearing a Halloween mask, pointed a handgun at the night manager, and demanded money from the cash register and the safe. After receiving $114, he ran outside to an awaiting vehicle. Shortly after the car left the scene, police stopped it and arrested Campana, the driver. Forcier fled from police, discharging his handgun, but was arrested later in the day. Officers recovered items from the vehicle as well as along the path that Forcier took in running from the police. Those items included the Halloween mask and a .32-caliber, semi-automatic pistol.
Forcier also admitted robbing four other businesses. On October 22, 2012, he stole $1,850 from Eddy’s Bar & Grill in Inver Grove Heights. He admittedly entered the bar, pointed a handgun at several employees, and fired it at the ceiling. On October 15, 2012, he stole $60 from an Apple Valley Domino’s Pizza; on October 18, 2012, he stole $154.41 from a Bloomington SuperAmerica; and on October 19, 2012, he stole $200 from an Apple Valley Jiffy Lube.
Because he is a felon, Forcier is prohibited under federal law from possessing firearms at any time. His prior Dakota County convictions include second-degree drug possession (2008), possession of stolen property (2008), two counts of fifth-degree drug possession (2007), and fleeing police in a motor vehicle (2007).
In her plea agreement, Campana admitted she was the lookout and get-away driver for Forcier on October 29. Campana also admitted that before the robbery, she questioned the hotel’s night manager about the hotel’s nighttime operations. In addition, Campana admitted she was Forcier’s get-away driver for the robberies at Eddy’s, SuperAmerica, and Domino’s.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Dakota County Sheriff’s Office; the Rice County Sheriff’s Office; and the police departments of Apple Valley, Bloomington, Inver Grove Heights and Northfield. It was prosecuted by Assistant U.S. Attorneys Amber M. Brennan and Allen A. Slaughter.Prosecutions Continue in Illegal Re-entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in St. Paul for two separate cases regarding Mexican nationals who entered the United States illegally after being deported as criminals. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, Lorenzo Armendariz-Sanchez, age 45, pleaded guilty earlier today. He was indicted on May 21, 2013, and entered his plea before United States District Court Judge Donovan W. Frank. In his plea agreement, Armendariz-Sanchez admitted that on April 21, 2013, authorities found him in the U.S. illegally after he had been previously deported. His deportation followed a 1998 Faribault County conviction for burglary in the first degree. On April 21, authorities identified Armendariz-Sanchez, also known as Lorenzo Sanchez Armendariz, as an alien with a criminal record while he was in the Blue Earth County Jail, where he was being held after an arrest for burglary and domestic assault.
Identification was made through the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). One of the goals of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted.
For his crime, Armendariz-Sanchez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
In the second case, on July 18, 2013, U.S. District Court Judge Paul A. Magnuson sentenced Mario Mireles-Flores, age 24, to 58 months. He was indicted on January 8, 2013, and pleaded guilty on April 2, 2013. In his plea agreement, Mireles-Flores admitted that on December 5, 2012, authorities found him in the U.S. illegally after he had been previously deported. His deportation followed a 2010 McLeod County conviction for escape from custody. Authorities recently identified him as an alien with a criminal record while he was serving a sentence in the Sibley County Jail for providing false information to police. That identification was made through the CAP.
This case was the result of an investigation by ICE ERO.
In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense. Both men will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Man Pleads Guilty to Making Bomb Threats at Minneapolis-St. Paul International Airport and MOARead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 22-year-old man, formerly of Maine, pleaded guilty to making bomb threats at the Minneapolis-St. Paul International Airport and the Mall of America (“MOA”). Dana William Ashey pleaded guilty to one count of false information and hoaxes. Ashey, who was indicted on May 13, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Ashey admitted that on April 12, 2013, he threatened that bombs had been planted at both the airport and the MOA. According to a law enforcement affidavit filed in the case, the airport’s police dispatch received a bomb threat at 2:37 a.m., on April 12, 2013, with a warning that a bomb placed in a restroom could go off by 3:00 a.m. At 2:42 a.m. that same day, another bomb threat was phoned in to security dispatch for the MOA. The caller in that instance stated that the bomb had been placed in a restroom. A search of the mall yielded no bomb. At 2:17 p.m., the mall’s switchboard operator received yet another bomb threat. Authorities traced the call and found the man still inside the MOA. The man, later identified as Ashey, possessed the cell phone that was used to deliver the bomb threats.For his crime, Ashey faces a potential maximum penalty of five years in federal prison. Judge Nelson 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’s Joint Terrorism Task Force, the Minneapolis-St. Paul International Airport Police Department, the Bloomington Police Department, and the MOA Security. It is being prosecuted by Assistant U.S. Attorney Andrew R. Winter.
Four Indicted for Conspiring to Unlawfully Harbor, Employ AliensRead the Press Release
MINNEAPOLIS—Recently in federal court, three St. Paul men and a California man were indicted for recruiting foreign nationals who were in or coming to the United States on visitor visas to work at the defendants’ hair and beauty products kiosks at the Mall of America. On July 16, 2013, Avraham Nadivi, age 31, Yehiel Shpitser, age 30, and Adam Vaknin, age 32, all of St. Paul; and Yosi Rachamim, age 31, of Woodland Hills, California, were charged with one count of conspiracy to commit unlawful employment and harboring of aliens, seven counts of unlawful employment of aliens, and four counts of harboring of certain aliens.
The indictment alleges that from September 21, 2009, through June 19, 2013, the defendants conspired with each other and others to hire and recruit the foreign nationals, to harbor them in apartments near the Mall, and to transport them to and from work, to conceal the unlawful employment and harboring from detection. Allegedly, YA & YA USA, Inc., a company operated by the defendants and the owner of the hair and beauty product kiosks at the Mall, did not report the wages of the unauthorized workers.
In August 2012, YA & YA was audited by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE-HSI”), and the indictment alleges that the defendants did not include employment verification paperwork on several employees. In addition, the defendants allegedly paid for apartments and electricity bills for the employees. The defendants also allegedly purchased and leased several vehicles to transport the employees to and from work.
A visitor visa is a non-immigrant visa for persons who want to enter the U.S. and persons holding such a visa are not authorized to work in the U.S. According to a law enforcement affidavit filed in the case, the Minnesota Department of Employment and Economic Development has no record for the past three years of any employees of YA & YA, although various individuals have been observed working there.
One of those employees has been indicted in a related case for making false claims in order to obtain lawful permanent resident status and employment authorization. On July 16, 2013, Lihi Aliza Elgrably, age 26, of St. Paul, was charged with one count of visa fraud. Elgrably’s indictment alleges that from January 27 to February 15, 2010, she submitted a petition to adjust her immigration status and allegedly withheld information about her employment with YA & YA.
If convicted, Nadivi, Rachamim, Shpitser, and Vaknin face a potential maximum penalty of ten years in prison on each harboring count, five years on the conspiracy count, and six months on each unlawful employment count. Elgrably faces a potential maximum penalty of ten years. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the U.S. Customs and Border Protection, ICE-HSI, and the HSI-led multi-agency Document and Benefit Fraud Task Force. It is being prosecuted by Assistant U.S. Attorneys Laura M. Provinzino and Sarah E. Hudleston.
To learn more about the Document and Benefit Fraud Task Force, visit http://www.ice.gov/document-benefit-fraud/.
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.Fergus Falls Man Indicted for Stealing from ATMs in West-central Minnesota, North DakotaRead the Press Release
MINNEAPOLIS—Recently in federal court, a 31-year-old Fergus Falls man was indicted with stealing money from automated teller machines (“ATM”) in numerous locations in west-central Minnesota and in Wahpeton, North Dakota, between March 2005 and March 2012. On July 16, 2013, Christopher James Diestler was charged with one count of bank larceny. Diestler was arrested on July 17, 2013, and made his initial appearance yesterday in federal court.
The indictment alleges that from March 2005 through March 15, 2012, Diestler stole approximately $182,350 from Bremer Bank ATMs in Alexandria, Breckenridge, Detroit Lakes, Fergus Falls, and Morris in Minnesota, and in Wahpeton, North Dakota; a Wells Fargo ATM in Alexandria; and a U.S. Bank ATM in Fergus Falls. The thefts were committed while Diestler was carrying out his duties as an armored truck driver.
If convicted, Diestler faces a potential maximum penalty of ten years in prison. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Otter Tail County Sheriff’s Office, the Fergus Falls Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.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.
Virginia, Minnesota, Felon Sentenced for Possessing A .38-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 49-year-old felon from the northern Minnesota community of Virginia was sentenced for possessing a .38-caliber revolver. United States District Court Judge Patrick J. Schiltz sentenced John Carl Pape to 180 months in prison on one count of being a felon in possession of a firearm. Pape was indicted on October 15, 2012, and pleaded guilty on January 31, 2013.
In his plea agreement, Pape admitted possessing the Smith & Wesson, five-shot revolver on May 6, 2012. On that day, police received a complaint that two vehicles had been vandalized in a church parking lot in Eveleth, Minnesota. One of the victims stated that her purse was stolen, and that it contained the gun and credit cards, among other items. Later that day, Pape was questioned by authorities and admitted attempting to make purchases and withdrawals with the victim’s stolen credit card. During the subsequent execution of a search warrant at Pape’s residence on May 6 and 7, 2012, officers seized items linked to the theft, including the gun.
Because he is a felon, Pape is prohibited under federal law from possessing firearms at any time. His previous St. Louis County convictions include third-degree burglary (1991 and 2004), fifth-degree possession of drugs (2007 and 2008), and fifth-degree sale of marijuana (1998).Since at least three of Pape’s prior convictions constitute crimes of violence or major drug crimes, he was subject to the federal Armed Career Criminal Act if convicted in the current federal case. That act mandates a minimum of 15 years in federal prison.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.Six Individuals Sentenced for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, two individuals were sentenced for their roles in a large, multi-state, identity theft ring. United States District Court Judge Paul A. Magnuson sentenced Joel Delano Powell III, age 20, of Minneapolis, to 42 months in prison; and Trey Jeremiah Powell, age 20, of Brooklyn Park, to 57 months in prison. Both had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Earlier this week, Joel Delano Powell, Jr., age 47, of St. Louis Park, was sentenced to 300 months in prison. Powell, Jr. was convicted following a jury trial in August and September 2012 of one count of conspiracy to commit bank fraud, seven counts of aiding and abetting bank fraud, and five counts of aggravated identity theft.
On Wednesday, Judge Magnuson sentenced Elston Edwards Sharps, age 47, of Minneapolis, to 32 months in prison; Kevin Terrell Martin, age 46, of St. Paul, to 124 months in prison; and Steven Lavell Maxwell, age 44, also of Minneapolis, to 140 months in prison. All three had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Seventeen other defendants have been sentenced in this case thus far, while nine more await sentencing.
These individuals, along with over 100 others, were involved in a conspiracy from 2006 through December of 2011 to defraud banks, bank customers, and businesses. 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 throughout Minnesota and in at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole victim information from their places of employment, from individuals employed at area banks, from those who stole the information from the mail, during vehicle break-ins, and business burglaries, among other sources.
Following sentencing, Patrick Henry, the head of the Minnesota Financial Crimes Task Force, said, “This investigation came together as a result of the partnerships between agencies and the extraordinary efforts of all involved. The Minnesota Financial Crimes Task Force led this investigation, but this is an example of successful collaboration of local, state, and federal criminal justice agencies.”
Kelly R. Jackson, Special Agent in Charge of IRS Criminal Investigations, St. Paul Field Office, which also participated in the investigation, said, “Individuals who commit identity fraud of this magnitude deserve to be punished to the fullest extent of the law. These individuals caused immeasurable hardship to innocent victims. IRS Criminal Investigations remains committed to the pursuit of identity theft, and together with our law enforcement partners and the U.S. Attorney’s Office, we will hold those who engage in similar behavior fully accountable.”
In a related case, five individuals were charged with conspiracy to commit bank fraud, bank fraud and aggravated identity theft. Jemall Ronta Williams, Jerome Davis, Jr., Tierra Samantha Catrina House, and Shanell Collette Brewer each pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Gordon Lamarr Moore was convicted in April 2013 following a jury trial. During the trial, Moore fled and became a fugitive. On July 8, 2013, he was arrested in at a hotel in Milwaukee, Wisconsin. Moore attempted to again flee, but was ultimately apprehended without incident.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They were prosecuted by Assistant U.S. Attorney Karen B. Schommer and Assistant U.S. Attorney Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.Minneapolis Felon Pleads Guilty to Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 59-year-old Minneapolis felon pleaded guilty to possessing a nine-millimeter pistol. Robert Lee Powers pleaded guilty to one count of being a felon in possession. Powers, who was indicted on April 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Powers admitted that on March 18, 2013, during the execution of a state search warrant of his residence, police recovered a nine-millimeter, semi-automatic pistol and approximately five grams of heroin. Because he is a felon, he is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Hennepin County for third-degree sale of crack cocaine (1989), offering a forged check (1992), fourth-degree sale of crack cocaine (1992), attempted first-degree criminal sexual conduct (1992), a third-degree controlled substance crime (2000), an attempted fifth-degree controlled substance crime (2004 and 2005), a fifth-degree controlled substance crime (2008 and 2009), and theft of a motor vehicle (2009). In addition, Powers was convicted in Washington County for conspiracy to commit a controlled substance crime (1996) and being a predatory offender providing false information (2005).Because at least three of these convictions constituted violent crimes or major drug crimes, Powers is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted under federal law for being a felon in possession of a firearm or ammunition. Judge Nelson will determine Powers’s sentence at a future hearing, yet to be scheduled.
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 Thomas M. Hollenhorst.
The case was charged federally through 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. Then, the Hennepin County Attorney’s Office 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.Mexican National Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 27-year-old Mexican national was indicted for entering the United States illegally after previously being deported as an aggravated felon. Hector Rios-Guzman was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on May 15, 2013, Rios-Guzman, also known as Hector Rios, was found in the U.S. after being deported to Mexico in 2012, following a 2004 Hennepin County conviction for terroristic threats. On May 15, 2013, Rios-Guzman was arrested following a traffic stop in Bloomington. According to a law enforcement affidavit filed in the case, Rios-Guzman fled the scene on foot before he was arrested. Rios-Guzman has a previous conviction in the District of Minnesota for illegal re-entry.
If convicted of the federal charges now levied against him, Rios-Guzman will face a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.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.
Man Pleads Guilty to Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 31-year-old man pleaded guilty to possessing a stolen handgun. Nathan Anderson, of Bloomington, pleaded guilty to one count of possession of a stolen firearm. Anderson, who was charged yesterday via an Information, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Anderson admitted that at approximately 10 p.m. on March 2, 2013, he fell asleep while waiting for his food at a McDonald’s drive-through in Bloomington. Store employees contacted the police, who met with Anderson and found a loaded .45-caliber pistol in his coat. In addition, Anderson admitted that he knew the pistol had been stolen.
For his crime, Anderson faces a potential maximum penalty of ten years in prison. Judge Nelson will determine his sentence at a future hearing. This case is the result of an investigation by the Bloomington 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.Brooklyn Center Man Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 28-year-old Brooklyn Center man was indicted for conspiring to and distributing methamphetamine. Ricardo Lamar Rodrigues was charged with one count of conspiracy to distribute methamphetamine, one count of attempted possession with intent to distribute methamphetamine, one count of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, one count of using, carrying and possessing firearms during and in relation to a drug-trafficking crime, and one count of being a felon in possession of firearms.
The indictment alleges that from the summer of 2011 through June 17, 2013, Rodrigues conspired with others to distribute 50 or more grams of methamphetamine, and that on February 27, 2013, Rodrigues attempted to possess with intent to distribute 50 or more grams of methamphetamine. It also alleges that on June 17, 2013, Rodrigues distributed five or more grams of methamphetamine, and possessed with intent to distribute 50 or more grams of methamphetamine while possessing a nine-millimeter, semi-automatic pistol and a Glock .45-caliber pistol. Because he is a felon, Rodrigues is prohibited under federal law from possessing a firearm at any time. Rodrigues was previously convicted in Arizona for possession of drug paraphernalia (2012).According to a law enforcement affidavit filed in the case, authorities began investigating Rodrigues in May 2013. While under surveillance on June 17, officers observed Rodrigues making a suspected drug transaction. He was stopped shortly afterward, and officers seized several Hydrocodone pills and a plastic baggie with suspected drug residue. Earlier, authorities conducted an arranged controlled purchase of methamphetamine at Rodrigues’s residence.
During the execution of a search warrant of Rodrigues’s residence, officers found a large digital scale, a loaded nine-millimeter pistol, and approximately 562.5 grams of methamphetamine inside a safe. The Glock handgun was found in Rodrigues’s bedroom, and a .22-caliber revolver was found hidden inside a cinder block on the back deck. An additional 66.5 grams of methamphetamine was found inside the passenger door of a Ford F-150.
If convicted, Rodrigues faces a potential maximum penalty of life in prison on the conspiracy, the possession and attempted possession counts; 40 years on the distribution count; ten years on the felon in possession count; and a consecutive five-year sentence on the possessing firearms in relation to drug-trafficking count. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration and the Bloomington Police Department, with cooperation from the Brooklyn Center Police Department and the Anoka-Hennepin Drug Task Force. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.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.
Red Lake Woman Charged with MurderRead the Press Release
MINNEAPOLIS—Last week in federal court in Bemidji, a 25-year-old Red Lake woman made her initial appearance in connection with the murder of Byron James Lussier. On July 11, 2013, Alison Ann Brown was charged via a criminal complaint with one count of murder, following her arrest. She remains in custody.
According to a law enforcement affidavit filed in the case, at approximately 4:22 a.m. July 4, 2013, officers were called to Lussier’s residence on a report that he was stabbed. When they arrived, officers found the 51-year-old victim lying on the floor with multiple stab wounds. He was taken to the Red Lake Hospital where he was pronounced dead. Witnesses told officers that Brown and Lussier got into an argument, and that Brown stabbed Lussier with a kitchen knife. After being separated from Lussier, Brown then fled the scene on foot.
If convicted, Brown faces a potential maximum penalty of life in prison. Any sentence will be determined by a federal district court judge. 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 United States Attorney Clifford B. Wardlaw.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.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Burnsville Man Sentenced in Connection to Trevor Cook Ponzi SchemeRead the Press Release
MINNEAPOLIS— Earlier today in federal court, United States District Court Chief Judge Michael J. Davis sentenced a 75-year-old Burnsville man in connection to the multi-million-dollar Ponzi scheme orchestrated by Trevor Cook.
Patrick Kiley was sentenced to 240 months in federal prison on 12 counts of wire and mail fraud, one count of conspiracy to commit mail and wire fraud, and two counts of money laundering. Because the federal criminal justice system does not have parole, Kiley will spend virtually his entire sentence behind bars. Kiley and his co-defendants, who have been already sentenced, were also solely and jointly ordered to pay $155,359,411.77 in restitution to the victims of their fraud scheme. Kiley was charged in a second superseding indictment on February 22, 2012, and was convicted on June 12, 2012, after a nearly two-month trial.
On January 3, 2013, Jason Bo-Alan Beckman, age 43, of Plymouth, was sentenced to 360 months in federal prison, on 17 counts of wire and mail fraud, two counts of conspiracy to commit mail and wire fraud, four counts of money laundering, two counts of filing a false tax return, and one count of tax evasion. Gerald Joseph Durand, age 62, of Faribault, was sentenced to 240 months on 12 counts of wire and mail fraud, one count of conspiracy to commit mail and wire fraud, and two counts of money laundering, two counts of concealing a material fact from the U.S., and three counts of filing a false tax return.
Christopher Pettengill, age 56, also of Plymouth, was sentenced to 90 months in federal prison on one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of money laundering.The evidence presented at trial proved that between 2005 and November of 2009, the defendants, along with Cook, defrauded investors by soliciting them to invest money in a foreign currency trading program that they alleged would earn a double-digit rate of return, typically between 10.5 and 12 percent annually, with little or no risk. They also claimed investor assets would be held in a segregated account and could be withdrawn at any time. Those representations were false.
The defendants and Cook made the investment offers through entities known as Universal Brokerage Services or bearing the acronym “UBS.” (The UBS entities had no legitimate affiliation to the global provider of financial services UBS, AG.) Cook operated the currency program through various foreign currency trading firms, including but not limited to one in Chicago and another in Switzerland.
To induce investors, the defendants and Cook, directly or through others, made false representations regarding the performance, safety, and liquidity of the currency program. They also omitted material information concerning their own backgrounds and qualifications as well as the backgrounds and qualifications of those working for them.
Once investments were made, some investors received UBS account statements that indicated that the currency program was performing as promised, while others received checks for “returns on their investments.” Both the statements and checks, however, were actually produced by the co-conspirators, the purpose being to lull investors or encourage them to make additional investments. At the same time, most investors received nothing from the true custodians of their funds.
Although some investment funds were invested in foreign currency trading, most of that trading was high risk in nature, often resulting in significant losses, none of which was disclosed to investors. Moreover, the co-conspirators concealed that the currency trading firm in Switzerland was in dire financial condition and, instead, continued to solicit investor assets to be sent to that trading firm. Co-conspirators also concealed from investors their own concerns about Cook’s operation of the currency program and alleged illegalities relative to the currency program.
In 2007, when UBS, AG, filed a trademark infringement lawsuit against Cook, Durand, Kiley, and others, the defendants began operating their scheme under other names, including but not limited to those identified by the terms “Oxford” and “Universal Brokerage FX.” They then continued to solicit investors for the currency program, utilizing telemarketing, media spots, and seminars in which they repeated the false representations noted above. Kiley, a Christian radio host, solicited investors for the scam through his radio talk show, which was carried on more than 200 stations across the country. On those programs, he regularly warned listeners to avoid financial ruin by giving their life savings to his company for investment.
Between 2005 and July 2009, the defendants, Cook, and others secured approximately $194 million in investments for the currency program. Of that amount, only about $109 million was actually sent to currency trading firms. About $52 million was paid to investors in the form of lulling payments, and approximately $30 million was diverted to fund the business and personal expenses of the defendants, Cook, and others.
In August of 2010, Cook was sentenced to 300 months in federal prison for his role in the scam. On July 18, 2011, Jon Jason Greco pleaded guilty to two counts of making false statements to federal agents, specifically lying about assets he had concealed relative to this scam. He was sentenced to ten months in prison for his crimes.
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, with cooperation from the U.S. Securities and Exchange Commission and the Commodities Futures Trading Commission. It was prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and David J. MacLaughlin.
Proceeds from the Cook fraud scheme are the subject of an ongoing investigation and recovery efforts led by the law firm Carlson, Caspers, Vandenburg, and Lindquist, through a previous appointment by Judge Davis.
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 effort in investigating and prosecuting 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 is working to improve efforts across the federal executive branch and, with state and local partners, will 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.Stockton Man Indicted for Conspiring to Distribute 500 Grams of MethamphetamineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges a 27-year-old man with conspiring to distribute more than 500 grams of methamphetamine. The indictment, which was filed on July 9, 2013, charges Gabriel Orion Lowther, of Stockton, Minnesota, with one count of conspiracy. On July 10, 2013, the indictment was unsealed following Lowther’s initial appearance in federal court.
The indictment alleges that from August 2012 to June 2013, Lowther conspired with others to distribute 500 or more grams of methamphetamine.
If convicted, Lowther faces a potential maximum penalty of life in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.
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.
Rochester Man Sentenced for Possessing Methamphetamine with the Intent to DistributeRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 45-year-old Rochester man was sentenced for possessing methamphetamine with the intent to distribute it. United States District Court Judge Joan N. Ericksen sentenced Christopher Lee Talamantes to 210 months in prison on one count of possession with intent to distribute methamphetamine. Talamantes was indicted on July 10, 2012, and pleaded guilty on December 11, 2012.
In his plea agreement, Talamantes admitted that on September 15, 2011, officers seized approximately $1,900 and 600 grams of methamphetamine during the execution of a search warrant at his apartment. In addition, on July 28, 2011, officers seized approximately 2.6 grams of methamphetamine and $13,748 during the execution of a search warrant at his residence.
This case was the result of an investigation by the U.S. Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, and the Olmsted County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Julie E. Allyn. To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.Fridley Man Pleads Guilty to Transporting A Minor to Engage in ProstitutionRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 27-year-old Fridley man pleaded guilty to transporting a minor to engage in prostitution. Napoleon Long, Jr., pleaded guilty to one count of transportation of a minor with intent to engage in criminal sexual activity. Long, who was charged via an Information, entered his plea before United States District Court Judge Richard H. Kyle.
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.
For his crime, Long faces a potential maximum penalty of life in prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Anoka County Sheriff’s Office and U. S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being 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/Two St. Paul Men Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, two St. Paul men were indicted for conspiring to distribute methamphetamine. On July 9, 2013, Jorge De Jesus Gonzalez-Becerra, age 33, and Terry Lee Banks, Jr., age 37, were charged with one count of conspiracy to distribute methamphetamine. In addition, Banks was charged with one count of possession with intent to distribute cocaine and one count of possession with intent to distribute methamphetamine, while Gonzalez-Becerra was charged with three counts of possession with intent to distribute methamphetamine.
The indictment alleges that from March to June 12, 2013, the defendants conspired with each other and others to possess with intent to distribute 50 or more grams of methamphetamine, and that on June 12, they possessed with intent to distribute 450 or more grams of methamphetamine. It also alleges that Gonzalez-Becerra possessed with intent to distribute 29 grams of methamphetamine on March 13 and 31 grams of methamphetamine on March 25. In addition, on March 12, Banks possessed with intent to distribute five or more grams of cocaine.According to a law enforcement affidavit filed in the case, authorities began investigating Gonzalez-Becerra in March 2013. Eventually, they obtained approximately two ounces of methamphetamine, three grams of cocaine, and nine firearms during arranged controlled purchases. All of the transactions took place at Gonzalez-Becerra’s residence.
If convicted, the defendants face a potential maximum penalty of 40 years in prison on each count. All sentences would be determined by a federal district court judge. This case is the result of an investigation by the United States Drug Enforcement Administration, the St. Paul Police Department, the Ramsey County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard 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.
Burnsville Man Sentenced for Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 21-year-old Burnsville man was sentenced for possessing a stolen .40-caliber, semi-automatic pistol. On July 9, 2013, United States District Court Judge Joan N. Ericksen sentenced Wesley Rayvon Johnson to 84 months in prison on one count of possessing a stolen firearm. Johnson was charged on February 21, 2013, and pleaded guilty on February 22, 2013.
In his plea agreement, Johnson admitted that on October 23, 2012, he possessed the loaded gun while walking in Minneapolis with three friends at approximately 4:10 p.m. Johnson also admitted he knew the pistol, which was tucked into his waist band, was stolen. When the four friends saw a police squad, one of them ran. When officers asked the remaining three to raise their hands into the air, Johnson admitted he didn’t raise his hands all the way in an attempt to hide the gun. In addition, Johnson admitted disobeying the officers when ordered to lie on the ground. The gun fell out of Johnson’s waist band following a struggle.
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. Attorneys Amber M. Brennan and LeeAnn K. Bell.California Man Pleads Guilty for Planning to Distribute Crack Cocaine and Marijuana in MinnesotaRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 31-year-old man from Sacramento, California, pleaded guilty to conspiring to distribute crack cocaine and marijuana in Minnesota. Demar Deshawn Powell pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute controlled substances. Powell, who was indicted on May 13, 2013, entered his plea before United States District Court Judge Susan Richard Nelson. In his plea agreement, Powell admitted that on September 21, 2012, he received a package containing controlled substances, which he intended to distribute.
On September 20, 2012, a suspicious package came into the Minneapolis-St. Paul International Airport. Authorities utilized a drug-sniffing dog, which alerted to narcotics in the package. During the subsequent execution of a search warrant on the parcel, which was being shipped from Sacramento to a Bloomington address, authorities found approximately 279 grams of crack cocaine and 111 grams of marijuana hidden inside a child’s potty seat. The next day, law enforcement delivered the package to the Bloomington address. Police then arrested Powell when he claimed the parcel. Powell admitted that he conspired with the package’s sender to receive the package and sell the drugs to customers in Minnesota.For his crime, Powell faces a potential maximum penalty of 40 years in prison, with a mandatory minimum penalty of five years. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the U.S. Postal Inspection Service, the Bloomington Police Department, and the Minneapolis-St. Paul International Airport Police Department, with cooperation from the Sacramento County Sheriff’s Office in California. The case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Redby Man Pleads Guilty to Assaulting Another with A MacheteRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 19-year-old Redby man pleaded guilty to assaulting another person with a machete while in Redby, a community on the Red Lake Indian Reservation. Dale Clinton White, Jr., pleaded guilty to one count of assault resulting in serious bodily harm. White, who was indicted on May 6, 2013, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, White admitted that on March 22, 2013, he repeatedly struck another man with a machete as that man slept in the bedroom of a Redby residence. As a result of the assault, the victim suffered fractures to the skull, left arm, and front sinus, as well as lacerations on the scalp, face, and arms. The victim also had soft tissue damage and hemorrhagic shock, which required multiple blood transfusions.
For his crime, White faces a potential maximum penalty of ten years in federal prison. Judge 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 United States Attorney Clifford B. Wardlaw.
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.St. Paul Felon Indicted for Possessing Nine-millimeter Pistol, Distributing Crack CocaineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 25-year-old felon from St. Paul with possessing several firearms as well as distributing crack cocaine. The indictment, which was filed on June 18, 2013, charges Paris Cedrell Neal with two counts of being a felon in possession of a firearm, one count of distribution of crack cocaine, and one count of using and carrying firearms during and in relation to a drug-trafficking crime. The indictment was unsealed following Neal’s initial appearance in federal court.
The indictment alleges that on December 4, 2012, Neal distributed crack cocaine while in possession of several firearms, including a 7.65-millimeter, semi-automatic pistol; a 10.35-millimeter revolver with no serial number; a .44-caliber, semi-automatic rifle; and a .22-caliber, semi-automatic rifle. In addition, the indictment alleges that on November 29, 2012, Neal possessed a nine-millimeter, semi-automatic pistol.
Because he is a felon, Neal is prohibited under federal law from possessing a firearm at any time. Neal was previously convicted in Hennepin County for second-degree assault (2005), two counts of theft of a motor vehicle (2008), and second-degree burglary (2011).If convicted, Neal faces a potential maximum penalty of 20 years in prison on the crack cocaine distribution count, ten years on each felon in possession count, and life on the using and carrying firearms count. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.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.
Duluth Felon Indicted for Carjacking, Possessing Nine-millimeter Pistol and MethamphetamineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier this week charges a 34-year-old felon from Duluth with carjacking and possessing a nine-millimeter pistol as well as methamphetamine. The indictment, which was filed on June 18, 2013, charges Elfred William Petruk with one count of carjacking, one count of conspiracy to possess methamphetamine, one count of being a felon in possession of a firearm, and one count of possession with intent to distribute methamphetamine. The indictment was unsealed following Petruk’s initial appearance in federal court on June 25, 2013.
The indictment alleges that on June 18, 2012, Petruk took a 1989 GMC Sierra pickup truck by force. It also alleges that from the autumn of 2012 through March 27, 2013, Petruk conspired with others to possess methamphetamine, and that on March 27, 2013, he specifically possessed with intent to distribute five or more grams of methamphetamine.
Furthermore, because he is a felon, Petruk is prohibited under federal law from possessing a firearm at any time. The indictment alleges, however, that on December 4, 2012, Petruk possessed a nine-millimeter, semi-automatic pistol. His previous convictions in St. Louis County include second-degree burglary (1995), possession of a firearm by a felon (1998), possession of methamphetamine (1999), and fifth-degree assault (2002). In addition, Petruk was convicted in federal court in the District of Minnesota with possession with intent to distribute methamphetamine (2004). Since those convictions constituted crimes of violence or serious drug crimes, Petruk is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. Any sentence would be determined by a federal district court judge if Petruk is convicted or pleads guilty to the charges now filed against him.
If convicted, Petruk also faces a potential maximum penalty of 15 years in prison for carjacking, and 40 years on each of the two remaining counts.
This case is the result of an investigation by the Duluth Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.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.
Couple Indicted for Making False Tax ClaimsRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges a couple with defrauding the Internal Revenue Service (“IRS”) by filing false individual income tax returns that claimed refunds to which they were not entitled. The indictment, which was filed under seal on June 18, 2013, charges Mark Allen Garcia and Patricia Ann McQuarry with one count of conspiracy to defraud the United States and two counts of making false claims. The indictment was unsealed following the defendants’ initial appearance in federal court on June 19. Earlier today, both were arraigned.
The indictment alleges that between July 2008 and November 2009, the married defendants conspired to obtain money by filing false U.S. Individual Income Tax Returns for tax years 2007 and 2008. Those allegedly fraudulent returns claimed unentitled refunds and, in one instance, resulted in the IRS paying a false refund of approximately $226,000.
For tax years 2007 and 2008, both defendants filed self-prepared tax returns as “married filing separately.” In her return, McQuarry allegedly stated that she had received more than $127,000 in original issue discount (“OID”) income from several financial institutions, and that the entire amount had been withheld and paid, when in fact, none of the listed financial institutions had paid McQuarry any OID income. By creating false withholdings in the amount of her claimed OID income, McQuarry manufactured a large federal refund.
In addition, both defendants allegedly included false interest income from various financial institutions on their tax returns. In fact, only one of the listed institutions paid the defendants any interest income at all. By creating the false withholdings, both defendants manufactured large tax refunds for tax years 2007 and 2008.
For his part, Garcia allegedly applied for and obtained a “Refund Transfer” from a financial institution in connection with his 2007 tax return. The IRS disbursed Garcia’s federal tax refund, which he allegedly knew was false, to the financial institution, which transferred the refund to his bank account.
As a result of the conspiracy, the defendants allegedly made more than $500,000 in false claims to the IRS.
If convicted, the defendants face a potential maximum penalty of ten years in prison for conspiracy and five years on each count of making a false claim. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.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. 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.
Four Individuals Sentenced for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, four individuals were sentenced for their roles in a large, multi-state, identity theft ring. United States District Court Judge Paul A. Magnuson sentenced Donyea Terrell Collins, age 27, of Richfield, to 55 months in prison; Derek Charles Estelle, age 25, of Stillwater, to 30 months in prison; and Kelly Jenelle Scott, age 44, no known address, to 46 months in prison. All three had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Judge Magnuson also sentenced Lee Vang, age 32, of St. Paul, to 30 months in prison on one count of conspiracy to commit money laundering and one count of aggravated identity theft. Vang had also previously pled guilty to these charges.
These individuals, along with over 100 others, were involved in a conspiracy from 2006 through December of 2011 to defraud banks, bank customers, and businesses. 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, and at banks, where the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions throughout Minnesota and in at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole victim information from their places of employment, from individuals employed at area banks, from those who stole the information from the mail, during vehicle break-ins, and business burglaries, among other sources.
Following sentencing, Patrick Henry, the head of the Minnesota Financial Crimes Task Force, said, “This investigation came together as a result of the partnerships between agencies and the extraordinary efforts of all involved. The Minnesota Financial Crimes Task Force led this investigation, but this is an example of successful collaboration of local, state, and federal criminal justice agencies.”
Kelly R. Jackson, Special Agent in Charge of IRS Criminal Investigations, St. Paul Field Office, which also participated in the investigation, said, “Individuals who commit identity fraud of this magnitude deserve to be punished to the fullest extent of the law. These individuals caused immeasurable hardship to innocent victims. IRS Criminal Investigations remains committed to the pursuit of identity theft, and together with our law enforcement partners and the U.S. Attorney’s Office, we will hold those who engage in similar behavior fully accountable.”
Several other defendants have been sentenced in this case thus far. On June 20, 2013, Patricia Grace Pnewski, age 52, of South St. Paul, was sentenced to time served on one count of conspiracy to commit bank fraud. She pleaded guilty on February 6, 2012. Also on June 20, Cynthia Andrea Maxwell, age 45, of St. Paul, was sentenced to 12 months and one day in prison on one count of conspiracy to commit concealment money laundering. She pleaded guilty on July 12, 2012. Judge Magnuson also sentenced Vinicia Andrell Williamson, age 28, of Minneapolis, to 24 months in prison on one count of conspiracy to commit bank fraud and one count of aggravated identity theft. She pleaded guilty on August 1, 2012.
On June 19, 2013, five co-conspirators were sentenced each on one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Christeena Janell Barker, age 46, no known address, was sentenced to 48 months in prison. She pleaded guilty on January 19, 2012. Brianna Marie Blegen, age 26, of Ham Lake, was sentenced to 24 months in prison. She pleaded guilty on June 6, 2012. Jacqueline Cleveland, age 55, of Bloomington, was sentenced to 26 months in prison. She pleaded guilty on April 11, 2012. Melissa Jean Beaman, age 37, of St. Louis Park, was sentenced to 24 months and one day in prison. She pleaded guilty on January 9, 2012. Robin Dawn Finger, age 44, of St. Paul, was sentenced to 34 months in prison. She pleaded guilty on June 21, 2012.
Also on June 19, Brianna Marie Darwin, age 27, of St. Paul, was sentenced to 24 months in prison on one count of conspiracy to commit money laundering and one count of aggravated identity theft. She pleaded guilty on July 20, 2011.
On June 14, 2013, four co-conspirators were sentenced each on one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Jamie Hubert Branson, age 47, of Minneapolis, was sentenced to 43 months in prison. He pleaded guilty on January 19, 2012. Ginger Loucina Halliburton, age 46, of St. Paul, was sentenced to 30 months in prison. She pleaded guilty on February 8, 2013. Majorie Marie Neely, age 51, of Red Wing, was sentenced to 43 months in prison. She pleaded guilty on January 10, 2012. Darryl Alan Brant, age 55, of St. Paul, was sentenced to 30 months in prison. He pleaded guilty on January 19, 2012.
In a related case, four additional individuals, Jemall Ronta Williams, Jerome Davis, Jr., Tierra Samantha Catrina House, and Shanell Collette Brewer pleaded guilty. Gordon Lamarr Moore was convicted in April 2013 following a jury trial. He remains a fugitive.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They were prosecuted by Assistant U.S. Attorney Karen B. Schommer and Assistant U.S. Attorney Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.Former Employee Pleads Guilty to Stealing Funds from Postal ServiceRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a former employee of the United States Postal Service (“USPS”) pleaded guilty to embezzling postal funds from the Brooklyn Park Post Office. Kathleen M. Warner, age 53, of Otsego, pleaded guilty to one count of misappropriation of postal funds. Warner, who was indicted on March 12, 2013, entered her plea before United States District Court Judge Paul A. Magnuson.
In her plea agreement, Warner admitted that from in or about February 2010 to in or about August 2012, while performing her duties as a service associate for the USPS, she stole funds exceeding $1,500. Warner admittedly recorded cash sales of postage stamps incorrectly to benefit herself, used postage stamps for personal mailings without paying for them, took money out of her cash drawer to purchase Post Office merchandise, and took money from the cash drawer for her own benefit. Warner’s activities were discovered through the use of a surveillance camera.
For her crime, Warner faces a potential maximum penalty of ten years in prison. Judge Magnuson will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the USPS-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Federal Jury Convicts Wisconsin Man for Possessing Cocaine and Crack Cocaine with Intent to DistributeRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a jury found a 33-year-old man from Green Bay, Wisconsin, guilty of conspiring to possess with intent to distribute cocaine and crack cocaine. On June 26, 2013, the jury convicted Travis Sentell Peeler of one count of conspiracy to possess with intent to distribute five or more kilograms of cocaine and 280 or more grams of crack cocaine. Peeler was indicted on July 23, 2012, along with six co-defendants.
The evidence presented at trial proved that between March 2009 and March 2012, Peeler conspired with others to possess with intent to distribute cocaine and crack cocaine. Earlier, six of Peeler’s co-defendants pleaded guilty to one count of conspiracy to distribute controlled substances. In their plea agreements, the co-defendants admitted that between March 2009 and March 2012, they conspired with each other to possess with intent to distribute cocaine and crack cocaine.
On March 4, 2013, Rossco Antonieo Ross, age 35, of Columbia Heights, pleaded guilty. In his plea agreement, Ross admitted that he obtained the cocaine, “cooked” it into crack cocaine, and sold it to the others. He also admitted responsibility for 340 grams of crack cocaine. On January 11, 2013, William Elisha Carter, age 28, of Plymouth, pleaded guilty. In his plea agreement, Carter admitted responsibility for between 5 and 15 kilograms of cocaine.
On December 18, 2012, Musaaleh Waheed Muhammad, age 36, of Brooklyn Park, pleaded guilty. In his plea agreement, Muhammad admitted that he distributed cocaine to others to sell. Muhammad admitted responsibility for between 5-15 kilograms of cocaine. On November 21, 2012, Charles Eric Jackson, Jr., age 45, of Minneapolis, pleaded guilty. In his plea agreement, Jackson admitted that he purchased crack cocaine from Ross and sold it to others. Jackson admitted responsibility for 161 grams of crack cocaine.
On November 19, 2012, Gregory Leroy Carter, age 26, of Brooklyn Park, pleaded guilty. In his plea agreement, Carter admitted that he purchased cocaine from Ross and sold it to others. He also admitted responsibility for 56 grams of crack cocaine. In addition, Carter admitted that he carried firearms, including a nine-millimeter pistol while he was trafficking in narcotics on February 5, 2012. On November 14, 2012, Heriberto Sanchez, age 25, of Lucerne, California, pleaded guilty. In his plea agreement, Sanchez admitted securing the transport of cocaine from Mexico through California to Minnesota. He also admitted responsibility for between 5 and 15 kilograms of cocaine.
For their crimes, Peeler, Sanchez, Ross, Muhammad, and William Carter face a potential maximum penalty of life in prison. Jackson and Gregory Carter face a potential maximum penalty of 40 years in prison. United States District Court Judge Richard H. Kyle will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation conducted by the Safe Streets Task Force, with assistance from the Wisconsin State Patrol and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. Safe Streets is a FBI-sponsored task force that focuses on combating violent street crime as well as gang and drug trafficking offenses. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Former Postal Carrier Indicted for Stealing Cash, Gift Cards from the MailRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late last week charges a former postal carrier with stealing cash and gift cards from the U.S. mail. The indictment, which was filed on June 11, 2013, charges Bobbi J. Ouradnik, age 27, of Hinckley, with one count of theft of mail by postal employee. The indictment was unsealed following Ouradnik’s initial appearance in federal court on Friday, June 21, 2013.
The indictment alleges that from July 2011 and July 3, 2012, Ouradnik stole currency and gift cards from letters and envelopes she was entrusted to deliver. At the time, she was employed as a rural carrier for the Harris Post Office.
If convicted, Ouradnik faces a potential maximum penalty of five years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.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.
Bloomington Man Sentenced to Life in Federal Prison for Conspiring to Distribute Controlled SubstancesRead the Press Release
MINNEAPOLIS— Earlier today in federal court, Eric Michelle Hunter, age 41, of Bloomington, was sentenced to life in federal prison for conspiring to distribute heroin, cocaine, and other controlled substances. United States District Court Judge Ann D. Montgomery specifically ordered Hunter to serve concurrent life sentences for conspiracy to distribute controlled substances and possession with intent to distribute heroin and BZP and a consecutive life sentence for aiding and abetting the carrying and using of a machine gun during and in relation to a drug trafficking crime, as well as a consecutive five-year sentence for aiding and abetting the carrying and using of a handgun during and in relation to a drug trafficking crime.
He was also ordered to serve concurrent 240-month sentences for witness tampering, being a felon in possession of a firearm, and aiding and abetting the distribution of controlled substances. Because the federal criminal justice system does not use parole, Hunter will remain in federal prison for the rest of his life.
Following the sentencing, U.S. Attorney B. Todd Jones said, “The sentence imposed in this case reflects both the culpability of this defendant and our continuing effort to protect our community from the most violent armed drug dealers. We will remain steadfast in our focus on the ‘worst of the worst’ when it comes to drug and gun prosecutions.”
Hunter was indicted on December 10, 2012, and convicted on February 22, 2013, following a jury trial. The evidence presented at that trial proved that from September 14, 2011, through July 24, 2012, Hunter conspired with others to distribute controlled substances, primarily heroin. On five occasions, Hunter aided and abetted the distribution of controlled substances, including heroin and benzylpiperazine, commonly known as BZP. He also conspired to distribute numerous other controlled substances, including two designer drugs with the street names “Foxy” and “Ivory Wave.”
Moreover, on May 2, 2012, Hunter aided and abetted the using and carrying of a .357-caliber, semi-automatic pistol, and on May 22, 2012, he aided and abetted using and carrying an AA Arms, nine-millimeter machine gun. Because Hunter is a convicted felon, he is prohibited under federal law from possessing firearms at any time. He was convicted in Mississippi of grand larceny in 1990, possession of cocaine in 1994, felon in possession of a deadly weapon in 1994, and intimidation and assault on a law enforcement officer in 1995. In addition, he was convicted in federal court in the District of Minnesota in 1998 for possession with intent to distribute crack cocaine.
On March 26, 2013, co-defendant Rikki Lee Gilow, age 20, also of Bloomington, was sentenced to 60 months on one count of conspiracy. In her plea agreement, Gilow admitted conspiring with Hunter and Jerry Anthony Harvey, age 39, of Minneapolis, to distribute controlled substances. In addition, Gilow admitted assisting Hunter in unknowingly selling two firearms to a government agent in connection with two separate drug transactions.
On April 9, 2013, Harvey pleaded guilty to one count of aiding and abetting the distribution of heroin. No sentencing date has yet been scheduled for Harvey.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dakota County Drug Task Force. It was prosecuted by Assistant U.S. Attorneys Thomas M. Hollenhorst and Julie E. Allyn.Arden Hills Man Pleads Guilty to Conspiring to Distribute 11 Pounds of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Arden Hills man pleaded guilty to distributing approximately 11 pounds of methamphetamine. Marcelino Garcia pleaded guilty to one count of conspiracy to distribute 500 or more grams of methamphetamine. Garcia, who was indicted on March 20, 2013, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Garcia, also known as Moreno Marcelino Garcia and Marcelino Garcia-Moreno, admitted that on March 15, 2013, he made arrangements to sell approximately 11 pounds of methamphetamine to an undercover federal agent at a Target parking lot in Shoreview. Garcia also admitted that during the subsequent execution of a search warrant at his residence, authorities seized a nine-millimeter, semi-automatic pistol and five additional pounds of methamphetamine. According to a law enforcement affidavit filed in the case, authorities learned about Garcia during routine narcotics’ investigations in the Twin Cities.
For his crime, Garcia faces a potential maximum penalty of life in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case is being prosecuted by Assistant United States Attorney Julie E. Allyn.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.Two Minnesota Men Indicted for Conspiring to Defraud Equipment-leasing and Insurance CompaniesRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges two Minnesota men with conspiring to defraud equipment-leasing companies and insurance companies. The indictment, which was filed under seal on June 18, 2013, charges Joseph Michael Hanson, age 54, of Mendota Heights, and Timothy John Lambrecht, age 41, of Medina, with one count of conspiracy to commit mail and wire fraud. The indictment was unsealed following Lambrecht’s initial appearance in federal court on June 20.
During the time relevant to this case, Lambrecht owned and controlled InCompass, Inc., a corporation engaged in the business of providing information technology services to third parties. Lambrecht also owned and controlled TRAC Enterprises, a shell corporation that he purportedly used to perpetrate parts of this fraud scheme. Together, Lambrecht and Hanson owned HLI, which, in turn, owned the building in New Brighton where InCompass operated (the “HLI Building”). The defendants allegedly paid a portion of the fraud proceeds to the lender that financed the defendants’ acquisition of the HLI Building.
As to the fraud, the indictment alleges that between December 2008 and May 2012, the defendants conspired with others to lease or to cause third parties to lease computer equipment at greatly inflated prices to create a pool of funds from which the defendants then paid their personal and business expenses. They also allegedly submitted false claims to insurance companies, claiming their equipment had been stolen.
For example, in December 2008, Lambrecht purportedly caused TRAC to purchase a storage area network (“SAN”) device for $27,700. In February 2009, Lambrecht then allegedly caused Wells Fargo Equipment Finance (“WFEF”) to purchase the SAN from TRAC at the greatly inflated price of $112,300 and then lease it to InCompass. Lambrecht reportedly hid from WFEF that he owned both TRAC and InCompass. He also allegedly misled WFEF into paying for SAN training and consulting services, purportedly worth $28,750, that were never provided. In all, the indictment claims Lambrecht obtained more than $246,179 from WFEF, which he used to prop up InCompass and pay against the loan on the HLI Building.
The indictment also alleges that in July 2010, Lambrecht falsely reported to his insurance carrier that the SAN had been stolen from InCompass. The defendants reportedly submitted an invoice to the insurance company from a business owned by Hanson in support of Lambrecht’s claim for reimbursement of more than $170,000 in replacement equipment and data recovery services. Those replacements and services, however, were never purchased or provided. Instead, between July 2010 and January 2011, Lambrecht received more than $498,000 from the insurance company, purportedly depositing the funds into the bank accounts of InCompass and TRAC. And during that entire time, InCompass continued to use the SAN in the course of its business.
In addition, the indictment alleges that on March 25, 2009, the defendants and others caused an entity owned by an unnamed co-conspirator to purchase from InCompass a SAN for approximately $74,100, even though the original purchase price was $22,000. Moreover, on July 21, 2010, an unnamed co-conspirator allegedly made a false claim to another insurance company that the SAN had been stolen from InCompass, leading to an insurance payout of $160,000.
As a result of this alleged fraud conspiracy, WFEF lost at least $100,000 and the insurance companies lost approximately $658,000.
If convicted, the defendants face a potential maximum penalty of five years in prison. Any sentence would be 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 United States Attorney David J. MacLaughlin.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 Indicted for Possessing A .22-caliber HandgunRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier this week charges a 23-year-old St. Paul felon with possessing a .22-caliber handgun. The indictment specifically charges Phuvanath Ronald Mounthachack with one count of being a felon in possession of a firearm. The indictment was unsealed following Mounthachack’s initial appearance in federal court on June 19.
The indictment alleges that on January 15, 2013, Mounthachack possessed the .22-caliber, semi-automatic handgun. Because he is a felon, Mounthachack is prohibited under federal law from possessing a firearm or ammunition at any time. His prior Wright County convictions include aggravated robbery (2007) and fifth-degree sale of a controlled substance while employing a dangerous weapon (2009).
If convicted, Mounthachack faces a potential maximum penalty of ten years in prison. Any sentence would be determined by a federal district court judge. 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.
The case was charged federally through 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. Then, the Hennepin County Attorney’s Office 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 a dozen serious habitual criminals through Project Exile Minneapolis.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.
Minneapolis Man Pleads Guilty to Being an Armed Career Criminal in Possession of A FirearmRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 47-year-old Minneapolis felon pleaded guilty to possessing a .357-caliber revolver. On June 20, 2013, Oscar Lee pleaded guilty to one count of being a felon in possession of a firearm. Lee, who was indicted on November 20, 2012, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Lee admitted that on May 14, 2012, he possessed the revolver, which had been reportedly stolen. Minneapolis Police attempted to stop Lee’s vehicle in south Minneapolis after observing a missing headlight. Rather than stopping, Lee ran through a stop sign and led police on a car chase for approximately ten blocks. He threw the handgun from the vehicle as he turned down an alley. Police later found the firearm.
Because he is a felon, Lee is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include burglary in the third degree (1987 and 1992) and assault in the second degree (1988). In 1997, Lee was convicted in Polk County, Iowa, for third-degree burglary, forgery, and being a felon in possession of a firearm.
Since those offenses constituted crimes of violence, Lee is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes. Judge Magnuson will determine Lee’s sentence at a future hearing, yet to be scheduled.
This case resulted from an investigation conducted by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Amber M. Brennan.
The case was charged federally through 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. Then, the Hennepin County Attorney’s Office 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 a dozen serious habitual criminals through Project Exile Minneapolis.Fridley Man Pleads Guilty to Robbing Two Twin Cities’ Shoe StoresRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 42-year-old Fridley man pleaded guilty to robbing two Twin Cities’ shoe stores in early January. Peter Christopher Nunn specifically pleaded guilty to two counts of interference with commerce by robbery, pursuant to the Hobbs Act. Nunn, who was indicted on February 5, 2013, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Nunn admitted that on January 5, 2013, he stole approximately $300 from the Payless ShoeSource store, located at 8510 Springbrook Drive in Coon Rapids, while threatening employees with a weapon that was later determined to be a BB gun. He also admitted ordering two people into a bathroom, barricading the bathroom door with a chair, and then leaving the store.
In addition, Nunn admitted that on January 7, 2013, he stole approximately $700 from the Famous Footwear store located at 1593 E. 17th Avenue in Shakopee in the same manner. Following that robbery, police arrested Nunn after a high-speed chase.As stated, Nunn was charged in federal court under the Hobbs Act, which was passed by Congress in1946. The Act allows federal prosecutors to prosecute violent habitual criminals who commit armed robberies in places of business that involve interstate commerce.
For his crimes, Nunn faces a potential maximum penalty of 20 years in prison on each count. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the police departments in Coon Rapids and Shakopee. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.8 Indicted for Stealing Money from ATMs and Prescription Drugs from PharmaciesRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges eight individuals in connection with a string of burglaries during which money was stolen from ATMs and prescription drugs were stolen from pharmacies. The indictment, which was filed under seal on June 10, 2013, was unsealed on June 18, 2013, following the defendants’ initial appearances in federal court. It charges Derek Edward Benedict, age 41, of Hugo; Lyle Robert Carpenter, age 40, of Hastings; Julia Jean Julien, age 35, of St. Cloud; Timothy Michael Kielb, age 45, of Fridley; Cherilyn Ann Mayotte, age 35, currently incarcerated in Superior, Wisconsin; Jason Michael Mussehl, age 42, currently incarcerated at the Stanley Correctional Institution in Stanley, Wisconsin; Jennifer Suzann Stanley, age 37, no known address; and Jonathan Roger Quast, age 28, of Lexington, Minnesota, with one count of conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen money.
In addition, Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast were charged with one count of conspiracy to steal controlled substances. Carpenter, Kielb, Mussehl, and Stanley were also charged with one count of bank burglary and two counts of bank larceny. Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl were also charged with one count of burglary involving controlled substances. Carpenter, Kielb, Mussehl, and Quast were also charged with one count of credit union burglary, one count of bank burglary, and one count of burglary involving controlled substances. And Benedict, Carpenter, Julien and Mussehl were also charged with one count of interstate transportation of stolen property.
More specifically, the indictment alleges that between October 2009 and February 2013, the defendants conspired with each other and others to enter and attempt to enter buildings that operated in whole or in part as banks or credit unions, because they housed ATM machines. In addition, it alleges that the defendants conspired to transport stolen merchandise and cash between the states of Minnesota and Wisconsin, and Iowa and Minnesota. The indictment also alleges that Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast conspired with each other and others to steal controlled substances from pharmacies.
In addition to those conspiracy charges, the indictment alleges that Benedict, Carpenter, Mussehl, and Stanley stole money from a Bank of America ATM located inside a Robbinsdale Walgreens store on October 24, 2009, and from a Bank of America ATM located inside a Golden Valley Walgreens on November 29, 2009. The indictment further alleges that on July 15, 2012, Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl stole various drugs from the Bloomington Drug Store. In addition, Carpenter, Kielb, Mussehl, and Quast allegedly stole money from a credit union ATM located inside the Dakota Convenience store in Prior Lake on August 19, 2012, and money from a U.S. Bank ATM located inside a Circle Pines Walgreens on August 23, 2012. Carpenter, Kielb, Mussehl, and Quast also stole drugs from the Circle Pines Walgreens pharmacy. And on September 9, 2012, Benedict, Carpenter, Julien, and Mussehl allegedly drove from Iowa to Minnesota carrying money stolen from a safe and ATM located inside a Walgreens store in Des Moines, Iowa.
If convicted, the potential maximum penalties are 20 years in prison for conspiracy to commit burglary involving controlled substances, bank burglary, credit union burglary, and burglary involving controlled substances; ten years for bank larceny and the interstate transportation of stolen property; and five years for conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen property. If convicted, the defendants’ sentences will be determined by a federal district court judge.
This case is the result of an multi-agency investigation conducted by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Hennepin County Sheriff’s Office, the U.S. Secret Service, the Centennial Lakes Police Department, and the Prior Lake Police Department, with cooperation from the Minnesota Bureau of Criminal Apprehension and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.
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.Coon Rapids Man Sentenced for Shipping Firearms to LiberiaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 38-year-old Coon Rapids man was sentenced for transporting firearms to his home country of Liberia. United States District Court Judge Ann D. Montgomery sentenced McHarding Degan Galimah to 30 months in prison on one count of smuggling firearms from the United States to Liberia. Galimah was indicted on August 22, 2012, and convicted on February 14, 2013.
The evidence presented at trial proved that Galimah purchased 12 firearms from a federally licensed firearms dealer, including seven Hi-Point, nine-millimeter handguns. In November 2010 and July 2011, he exported those weapons to Liberia and then made several trips to that country to take possession of the firearms for resale at a profit. At no time did he possess a license to transport the firearms, as required by federal law. Moreover, federal regulations prohibit the export of firearms to Liberia.
This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.Scandia Man Indicted for Stealing Survivor Benefits from the U.S. Department of Veterans AffairsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 49-year-old Scandia man was indicted for stealing more than $92,000 in survivor benefits from the United States Department of Veterans Affairs (“VA”). Dean Boraas was specifically charged with one count of theft of government funds.
The indictment alleges that from September 1, 2005, to May 30, 2010, Boraas stole and converted for his personal use $92,152 in survivor benefits to which he knew he was not entitled. The benefits were assigned to his mother, who passed away. However, the VA was not made known of that fact. As a result, the funds continued to be paid into a joint bank account held in the names of Boraas and his mother.
If convicted, Boraas faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the VA-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.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.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS – In the District of Minnesota, separate charges have been filed against two Mexican nationals who allegedly entered the United States illegally after being deported as criminals.
The first indictment alleges that on May 1, 2013, authorities found Juan Manuel Contreras-Lepe, age 61, in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 1995 Florida conviction for felony aggravated battery. On May 1, 2013, authorities identified Contreras-Lepe, also known as Ezekiel Hernandez-Sandoval, as an alien with a criminal record after a traffic stop near his Willmar residence.
If convicted of the federal charge now levied against him, Contreras-Lepe faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.The second indictment alleges that on May 7, 2013, authorities found Alfredo Rios-Guzman, age 35, illegally in the U.S. after he had been previously deported to Mexico. His deportation followed a 2007 Hennepin County conviction for assault in the second degree, involving a dangerous weapon. On May 7, 2013, after a traffic stop near his Bloomington residence, Rios-Guzman was identified as an alien with a criminal record.
If convicted of the federal charge now filed against him, Rios-Guzman faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense. The men in these cases will remain in custody until their current federal cases are resolved.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.
Native Mob Member Sentenced for MurderRead the Press Release
MINNEAPOLIS— Late this afternoon in federal court, a member of the Native Mob street gang was sentenced to 516 months in federal prison for shooting and killing fellow gang member Jeremee Kraskey. United States District Court Judge John R. Tunheim sentenced Shaun Michael Martinez, also known as Tinez, on one count of murder resulting from carrying and using a firearm during and in relation to a crime of violence. Since the federal justice system does not utilize parole, Martinez will serve virtually his entire sentence behind bars.
On July 19, 2012, Martinez was charged with the crime by way of a superseding indictment. He pleaded guilty on December 21, 2012. In his plea agreement, Martinez admitted that on February 26, 2011, he killed Kraskey to prevent him from offering law enforcement information about the Native Mob’s criminal activities, which were, at the time, the subject of a multi-jurisdictional investigation. Martinez specifically admitted driving Kraskey to a residence in the 3500 block of 14th Avenue South in Minneapolis, where he shot Kraskey three times, fatally wounding him.
The Native Mob is a regional criminal gang that originated in Minneapolis in the early 1990s. Members routinely engage in drug trafficking, assault, robbery, and murder. Membership is estimated at 200, with new members, including juveniles, regularly recruited from communities with large, young, male, Native American populations. Association with the gang is often signified by wearing red and black clothing or sporting gang-related tattoos.
Martinez was part of a federal case filed against 25 members of the Native Mob, many of whom were charged with violating the federal Racketeering Influenced and Corrupt Organizations Act (“RICO”). That law prohibits conspiring to conduct illegal activity through a criminal enterprise—in this instance, the Native Mob—in an effort to preserve, protect, promote, and enhance the enterprise’s power, territory, and financial gains.
To that end, members of the Native Mob distributed illegal drugs, from crack cocaine to ecstasy. They also provided monetary support to members, including those incarcerated; shared with one another police reports, victim statements, and other case discovery; hindered or obstructed officials from identifying or apprehending those wanted by the law; and intimidated witnesses to gang crime. Moreover, they maintained and circulated firearms for gang use and committed acts of violence, including murder, against individuals associated with rival gangs.
This case was the result of a long-term, cross-jurisdictional investigation conducted by numerous local, state, federal, and tribal law enforcement officers dedicated to making Minnesota’s streets and communities safer. These agencies included representatives from the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Drug Enforcement Administration; the U.S. Bureau of Indian Affairs; the FBI-funded Headwaters Safe Trails Task Force; the Paul Bunyan Drug Task Force; the Minnesota Department of Corrections; the Minnesota Bureau of Criminal Apprehension; the Carlton County Sheriff’s Office; the Mille Lacs Tribal Police Department; the Bemidji Police Department; and the Minneapolis Police Department. These investigators were assisted by those from—in alphabetical order—the Becker County Sheriff’s Office, the Beltrami County Sheriff’s Office, the Carlton County Attorney’s Office, the Cass County Attorney’s Office, the Cass County Sheriff’s Office, the Crow Wing County Sheriff’s Office, the Douglas County Sheriff’s Office of Wisconsin, the Duluth Police Department, the Fon du Lac Tribal Police Department, the Fridley Police Department, the Itasca County Sheriff’s Department, the Hennepin County Attorney’s Office, the Hennepin County Sheriff’s Office, the Hubbard County Sheriff’s Office, the Leech Lake Tribal Police Department, the LCO Reservation Police Department, the Lower Sioux Tribal Police Department, the Mahnomen County Sheriff’s Office, the Minnesota State Patrol, the Mille Lacs County Attorney’s Office, the Mille Lacs County Sheriff’s Office, the New Brighton Police Department, the North Central Drug Task Force, the Prior Lake Police Department, the Red Lake Tribal Police Department, the Redwood County Sheriff’s Office, Richfield Police Department, the Sherburne County Sheriff’s Office, the St. Paul Police Department, the U.S. Marshals Service, the Minneapolis Violent Offender Task Force, the Washington County Sheriff’s Office, and the White Earth Tribal Police Department.
This case was prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Steven L. Schleicher.Minneapolis Felon Indicted for Possessing 4 FirearmsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old Minneapolis felon was indicted for possessing four firearms. Carl Craig Larson was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on April 21, 2013, Larson possessed a .357-caliber revolver, a seven-millimeter rifle, and two 12-gauge shotguns. Because he is a felon, Larson is prohibited under federal law from possessing a firearm at any time. Larson was previously convicted in Hennepin County for second-degree murder (1986), financial transaction card fraud (1997), and burglary (1999 and 2010). Because those convictions constituted crimes of violence, Larson will now be subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone with such a record who is subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. Any sentence will be determined by a federal district court judge.This case is the result of an investigation by the LeSueur and Waseca county sheriff’s offices, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Sarah E. Hudleston.
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 Indicted for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 32-year-old felon from St. Paul with possessing a nine-millimeter, semi-automatic pistol. The indictment, which was filed on May 7, 2013, charges Desmen Lee Parker with one count of being a felon in possession of a firearm. The indictment was unsealed following Parker’s appearance today in federal court.
The indictment alleges that from an unknown date through July 27, 2012, Parker possessed the pistol. Because he is a felon, Parker is prohibited under federal law from possessing a firearm or ammunition at any time. His prior Hennepin County convictions include receiving stolen property (2001) and being a felon in possession of a firearm (2001). In addition, Parker was convicted in Ramsey County for theft (2000) and receiving stolen property (2006). He was also convicted in Eau Claire County, Wisconsin, for armed robbery in 2007.
If convicted, Parker faces a potential maximum penalty of ten years in prison. Any sentences will be 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. This case is being prosecuted by Assistant United States Attorney Allen A. Slaughter.
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.Mortgage Broker Sentenced for $20 Million Mortgage Fraud SchemeRead the Press Release
MINNEAPOLIS – Earlier today in federal court, an Edina mortgage broker was sentenced for his role in a $20 million mortgage fraud scheme that involved 57 properties. United States District Court Judge Joan N. Ericksen sentenced Derrick Ivan Lance, age 41, of Edina, to 46 months imprisonment followed by three years of supervised release on one count of conspiracy to commit wire fraud. Lance was charged on July 22, 2011, and pleaded guilty on August 10, 2011.
In his plea agreement, Lance admitted that between 2004 and 2007, he conspired with others to obtain mortgage loan proceeds based on fraudulent documentation. Lance’s unnamed co-conspirators identified residential properties available for purchase and recruited buyers for those properties. Two of the co-conspirators told buyers they would receive payments in the form of kickbacks after the property transactions had closed, and that they could put those payments toward the mortgages or use them to improve the properties.
For his part, Lance admitted using his licensed mortgage brokerage and his position within that brokerage to help prepare and submit false mortgage loan applications, which misrepresented the buyers’ true financial situation. Based on those fraudulent documents, loans were approved, and loan proceeds were disbursed by wire transfer into the accounts of various title companies. Due to paperwork that misrepresented the true nature of the real estate transactions, Lance and his co-conspirators then caused those title companies to disburse portions of the proceeds from the various transactions into bank accounts not associated with the property buyers, the purpose being to conceal the undisclosed kickbacks. Lance received more than $200,000 for assisting buyers in securing mortgage loans for at least 24 properties.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Tracy L. Perzel.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.Moorhead Man Indicted for Stealing Mail, Bank Fraud, Identity TheftRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 32-year-old Moorhead man in connection with a series of mail thefts in several Minnesota counties in the fall of 2012. The indictment charges Justin Lee Feldt with one count of theft of mail, four counts of bank fraud, two counts of aggravated identity theft, and one count of access device fraud. The indictment was unsealed following Feldt’s initial appearance in federal court.
The indictment alleges that between October and November 2012, Feldt stole mail containing blank credit card cash advance checks. Allegedly, he subsequently altered the checks to make them payable to him and then deposited them, later withdrawing the funds. The indictment also alleges that between October 25 and 27, 2012, Feldt used a stolen debit card to purchase various items.
If convicted, Feldt faces a potential maximum penalty of 30 years in prison on each count of bank fraud, ten years for access device fraud, five years for mail theft, and a mandatory two years for aggravated identity theft. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by the United States Postal Inspection Service (“USPIS”) and the sheriff’s offices for Crow Wing, Otter Tail, Pine, and Scott counties. It is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.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.
Fridley Felon Pleads Guilty to Possessing AmmunitionRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 22-year-old felon from Fridley pleaded guilty to possessing nine-millimeter, hollow-point ammunition. On June 13, 2013, Raphael Eric Matthews pleaded guilty to one count of being a felon in possession of ammunition. Matthews, who was indicted on February 19, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Matthews admitted that on January 31, 2013, he possessed the multiple nine-millimeter, hollow-point bullets. Matthews was a passenger in a vehicle stopped for a traffic violation, and the ammunition was found inside the jacket Matthews was wearing. Because he is a felon, Matthews is prohibited under federal law from possessing firearms or ammunition at any time. Matthews’s prior Hennepin County convictions include aggravated robbery (2007) and simple robbery (2012).
For his crimes, Matthews faces a potential maximum penalty of ten years in federal prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled. 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 Surya Saxena.Four Individuals Plead Guilty to Conspiring to Commit Social Security FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 50-year-old St. Paul woman pleaded guilty for her role in a conspiracy to defraud the Social Security Administration (“SSA”). Dianne Josephine Chess specifically pleaded guilty to one count of conspiracy to commit Social Security fraud. Chess, who was indicted along with three co-defendants on November 14, 2012, entered her plea before United States District Court Chief Judge Michael J. Davis.
From 2001 through June 2010, Chess was employed as a service representative at a SSA branch office in St. Paul. Her responsibilities included inputting into a computerized data system information provided by applicants seeking Social Security numbers. Based on that information, the Commissioner of Social Security would assign Social Security account numbers and issue Social Security cards to eligible applicants. Chess admitted entering false information into the SSA’s computer system and processing applications based on the false information so her co-conspirators would receive Social Security account numbers and cards.
On March 11, 2013, Victor Ray Holloway, age 52, of Richfield, pleaded guilty to one count of conspiracy and one count of theft of public funds in connection to this scheme. In his plea agreement, Holloway, also known as Victor Young, admitted that from 2001 through June 2010, he conspired with Chess and others to deceive the SSA. In addition, Holloway admitted that on June 13, 2008, he used the fraudulently obtained Social Security account number assigned to Victor Young while applying for a Minnesota identification card, and that from 2002 through October 2012, he embezzled approximately $77,318 in unentitled Supplemental Security Income (“SSI”) disability benefits.
On January 23, 2013, Larhea Lynn Nakao, age 34, of Brooklyn Park, pleaded guilty to one count of use of a false Social Security number and one count of theft of public funds. In her plea agreement, Nakao, also known as Larea Holloway, admitted that in July 2008, Victor Holloway provided her a fraudulently obtained Social Security card. Nakao also admitted that on October 24, 2010, she used that false Social Security number while applying for unemployment benefits. Moreover, from May 8, 2009, through October 2012, she failed to disclose on her Initial Information Sheet to the Metropolitan Council Housing & Redevelopment Authority that she was earning wages. As a result, she obtained $16,332 in Section 8 housing assistance payments from the U.S. Department of Housing and Urban Development (“HUD”) to which she was not entitled.
On January 18, 2013, Angela Grace Hinkle, age 47, of Lewisville, Texas, pleaded guilty to one count of use of a false Social Security number. In her plea agreement, Hinkle, also known as Angela Grace Holloway, admitted that in June 2008, Victor Holloway provided her with a fraudulent Social Security card. In addition, Hinkle admitted that on June 21, 2008, she used that Social Security number while applying for a Minnesota identification card.
For their crimes, the four defendants face a potential maximum penalty of five years on each count. Judge Davis will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation by the SSA-Office of Inspector General and the HUD-Office of Inspector General, with cooperation of U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.Two Claremont Men Plead Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 33-year-old man from the southeastern Minnesota community of Claremont pleaded guilty to conspiring to distribute more than 500 grams of methamphetamine. Michael Steven Schoenfelder specifically pleaded guilty to one count of conspiracy to distribute 50 or more grams of methamphetamine. Schoenfelder, who was indicted along with Clancy Shane Amy on May 6, 2013, entered his plea before United States District Court Judge Richard H. Kyle.
On June 12, 2013, Amy, age 38, also from Claremont, pleaded guilty to one count of conspiracy to distribute 50 or more grams of methamphetamine.
In their respective plea agreements, the defendants admitted that from at least August 2012 through March 2013, they conspired to distribute methamphetamine and other controlled substances from Mexico and Texas to areas within southeastern Minnesota. Both also admitted obtaining and selling approximately one pound of methamphetamine. In addition, Amy admitted that between January and March 2013, he sold methamphetamine to law enforcement in several arranged controlled purchases. On April 16, 2013, during the execution of a search warrant at Amy’s residence, authorities seized approximately 112 grams of methamphetamine, numerous plastic baggies, nine-millimeter and .38-caliber ammunition, two digital scales, a nine-millimeter handgun, a .22-caliber, semi-automatic handgun, a 12-gauge shotgun, and a safe that contained $615, marijuana, and methamphetamine.
For their crimes, the defendants face a potential maximum penalty of 40 years in prison. Judge Kyle will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation by the U.S. Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit, and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.St. Paul Felon Pleads Guilty to Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 24-year-old felon from St. Paul pleaded guilty to possessing a nine-millimeter, semi-automatic pistol. On June 12, 2013, Virgil Lee Kirkwood specifically pleaded guilty to one count of being a felon in possession of a firearm. Kirkwood, who was indicted on March 19, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Kirkwood admitted that on December 6, 2012, he possessed the pistol. According to a law enforcement affidavit filed in the case, officers learned that Kirkwood was in possession of a gun and investigated in the area of 700 Central Avenue in St. Paul, Minnesota. When officers approached, they found Kirkwood, who was subsequently detained on an outstanding Anoka County warrant for an unrelated burglary. The pistol was found inside a black sock hidden near where Kirkwood was standing. Authorities later learned that the pistol was stolen from a Fridley-based licensed firearms dealer.
Because he is a felon, Kirkwood, also known as Virgil Lee Crenshaw, is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include second-degree burglary (2010), third-degree attempted burglary (2012), and other offenses. Because certain of these convictions constitute crimes of violence, Kirkwood may be subject to sentencing under the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. The potential maximum penalty is life in prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled.
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. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.Red Lake Man Sentenced for Committing Domestic Assault by an Habitual OffenderRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 35-year-old Red Lake man was sentenced for committing domestic assault involving a woman on the Red Lake Indian Reservation. United States District Court Judge Donovan W. Frank sentenced Brian Gordon Graves to 21 months in federal prison on one count of assault with a dangerous weapon and one count of domestic assault by a habitual offender. Graves was indicted on November 5, 2012, and convicted on January 31, 2013.
According to the indictment and evidence presented at trial, on October 6, 2012, Graves assaulted the victim with a 12-gauge shotgun. This assault was committed after Graves was convicted for assault on at least two prior occasions in Red Lake Indian Tribal Court (criminal domestic violence in 1997 and first-degree assault in 1998).
This is the second time the United States Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by a habitual offender” law. That law was enacted in 2006 by Congress as support to the Violence Against Women Act of 2000. The 2006 statute is a valuable tool for federal prosecutors because research shows that many domestic violence offenders are repeat offenders and because domestic violence rates are extremely high in Indian Country.
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.
This case was the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It was 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.Hanover Man Pleads Guilty to Making False Statements to the EPARead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 46-year-old man from Hanover, Minnesota, pleaded guilty to making false statements in matters within the jurisdiction of the United States Environmental Protection Agency (“EPA”) regarding the levels of toxic pollutants in the industrial wastewater discharged by Anodize, Inc., the Buffalo-based machine shop where he worked. Brent Roland Feickert specifically pleaded guilty to one count of making false statements. Feickert, who was charged on May 13, 2013, entered his plea before U.S. District Court Judge David S. Doty.
Anodize’s operations include metal plating, a process which yields industrial wastewater containing heavy metals and toxic pollutants. Anodize discharges the industrial wastewater into the sanitary sewer system pursuant to limits set forth in its discharge permit. Under the conditions of its permit, the concentration of toxic pollutants, including nickel and zinc, must be below specified limits set by the EPA. The Minnesota Pollution Control Agency (“MPCA”) monitors the permit and requires companies to submit quarterly reports.
At Anodize, Feickert was responsible for receiving and reviewing the results of tests performed on the company’s industrial wastewater and then entering those results on the quarterly discharge reports submitted to the MPCA. In his plea agreement, Feickert admitted that on five occasions between 2009 and 2011, he submitted false quarterly discharge reports to the MPCA. In each report, Feickert falsely represented that the levels of nickel or zinc in Anodize’s industrial wastewater discharge were within permit limits. In each instance, testing had revealed and Feickert knew that the levels of nickel or zinc were in excess of permit limits.
Following today’s plea, Michelle Beeman, Deputy Commissioner of the MPCA, said, “Self-reporting is a cornerstone of the environmental regulatory process. Water protection depends on truthful self-reporting and the MPCA considers any action that jeopardizes the integrity of the regulatory process to be a serious violation and a potential threat to the environment.”
“Without accurate and honest information, governments cannot fully protect the public’s health and welfare,” said Randall Ashe, Special Agent in Charge of the EPA’s criminal enforcement program in Minnesota. “If toxins contained in wastewater are not clearly identified, they cannot be properly treated. When that happens, America’s waterways end up as dumping grounds for waste materials. Today’s guilty plea should serve as a warning to anyone who puts public health at risk by not carrying out his or her responsibilities honestly.”
For his crime, Feickert faces a potential maximum penalty of five years in federal prison. Judge Doty will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Field Office of the EPA’s Criminal Investigative Division and the MPCA. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.