District of Minnesota

MINNEAPOLIS—Earlier today in federal court, a 53-year-old Excelsior coin dealer was sentenced for devising and executing a scheme to defraud customers and investors out of more than $3.3 million. United States District Judge Patrick J. Schiltz sentenced David Laurence Marion to 60 months in prison on one count of conspiracy to commit mail and wire fraud and one count of money laundering. Marion was indicted on November 14, 2012, and pleaded guilty on February 21, 2013.

Marion owned International Rarities Corporation (“IRC”), a business that bought, sold, and traded gold coins and precious metals, among other things. Marion directed his sales staff to “cold call” people from “lead” sheets in an attempt to get them to buy, sell, or trade coins and precious metals.

In his plea agreement, Marion admitted that between December 2010 and August 2011, IRC received over $2 million in coins, precious metals, and money from customers who intended to make purchases or trades. In August 2011, IRC purportedly had over $2 million in unfulfilled customer orders. When customers inquired about the status of their orders, they were ignored by Marion and the IRC sales staff, or they were falsely advised that their orders were being processed or their money, coins, and precious metals could not be returned at that time. In the meantime, Marion used the customers’ money, coins, and precious metals to support his gambling and lavish lifestyle as well as to pay commissions and salaries, fulfill other customer orders, and support his family. Customers lost approximately $1.7 million in money, coins, and precious metals as a result of this scheme.

As president of International Rarities Holdings (“IRH”), Marion also directed his sales staff to sell securities in the form of ownership shares in the company. However, Marion was not registered with the Securities and Exchange Commission (“SEC”) as a broker or dealer at that time, nor was he associated with a registered SEC broker or dealer. In fact, in April 2009, the SEC rejected Marion’s attempt to register the IRH offering as a security, yet, from at least November 2008 through July 2009, Marion and his sales staff raised approximately $1 million from at least 26 investors who believed they were purchasing ownership shares in the company. Marion used approximately $200,000 of those investor funds for his own personal use.

This case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Karen B. Schommer.

The U.S. Attorney’s Office wants to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.

 

 

MINNEAPOLIS—Earlier today in federal court, a 33-year-old Eveleth woman made her initial appearance after being indicted for stealing more than $27,000 in Social Security benefits. On August 13, 2013, Kimberly Joann Wauzynski was charged with one count of theft of public money and one count of supplemental security income (“SSI”) benefits fraud.

The indictment alleges that from September 2008 through May 2012, Wauzynski, also known as Kimberly Joann Denne, stole approximately $27,851.08 from the Social Security Administration (“SSA”). According to the indictment, Wauzynski concealed from the SSA the true nature of her living arrangements in order to continue receiving SSI benefits on behalf of her child. Specifically, the indictment alleges that Wauzynski concealed the fact that the father of her child was living with her and her child and supporting the household. Per law, beneficiaries of SSI payments must report any change in living arrangements or sources of income.

If convicted, Wauzynski faces a potential maximum penalty of ten years in prison on each charge. Any sentence would be determined by a federal district judge. This case is the result of an investigation by the SSA-Office of Inspector General. It is being prosecuted by Assistant United States Attorney John E. Kokkinen.

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—Yesterday in federal court, a 34-year-old Delano man pleaded guilty to committing the April 24, 2013, robbery of a McDonald’s in Buffalo. On August 27, 2013, Matthew Dillon Sisneros pleaded guilty to one count of interference with commerce by robbery, pursuant to the Hobbs Act, and one count of possession of a firearm in furtherance of a crime of violence. Sisneros, who was indicted on June 3, 2013, entered his plea before United States District Judge Ann D. Montgomery.

In his plea agreement, Sisneros admitted that on April 24, 2013, he took $3,266 from the restaurant and, with a firearm, threatened violence against the employees. Upon entering the restaurant, Sisneros admittedly pointed a sawed-off 12-gauge shotgun at employees and demanded money. After receiving the money, he ran to a waiting vehicle and left the area.

The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.

For his crimes, Sisneros faces a potential maximum penalty of 20 years in prison for robbery and a mandatory minimum penalty of ten years for possession of a firearm in furtherance of a crime of violence. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the Buffalo Police Department, the Wright County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with cooperation from the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino.

 

 

MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 37-year-old Two Harbors man with producing images of child pornography. The indictment, which was filed on August 13, 2013, charges Joel Ray Allard with one count of production of child pornography. The indictment was unsealed following Allard’s initial appearance in federal court.

The indictment alleges that in August and September 2011, Allard enticed a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct.

If convicted, Allard faces a potential maximum penalty of life in prison, with a mandatory minimum penalty of 15 years. Any sentence would be determined by a federal district judge.

This case is the result of the Cook County Sheriff’s Office and the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David P. Steinkamp.

Production of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.

This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”

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—Earlier today in federal court, three individuals were indicted for arranging interstate transportation for the purpose of prostitution. Brandon Lynn Gilmore, age 23, and Angelica Marie Carter, age 20, both of Milwaukee, Wisconsin, and Dominique Alexandra McKee, age 19, no known address, were specifically charged with one count of conspiracy to facilitate travel in interstate commerce to engage in prostitution.

The indictment alleges that on July 12, 2013, the defendants entered into the conspiracy. A law enforcement affidavit filed in the case indicates that on July 20, 2013, Bloomington police were called to a local hotel to address a problem involving a 14-year-old girl. Upon their arrival, the police learned from the girl that she allegedly had been working as a prostitute out of the hotel for the past week. She reportedly said that Gilmore and McKee had brought her to the hotel from Milwaukee, where she wished to return. Officers located Gilmore and McKee in a hotel room. Carter was also found at the hotel. All three were immediately arrested.

According to police records, the minor female said she met McKee on a social website and chatted with him about escorting and making money. Then, on July 11, 2013, she allegedly met Gilmore and McKee at a Milwaukee hotel, where she was invited to travel with them to Minnesota to work as a prostitute. Allegedly, Gilmore took photographs of McKee and the young girl for the purpose of website-based advertising. For his part, Carter drove them all to Minnesota.

If convicted, the defendants face a potential maximum penalty of 30 years in prison. Any sentence would be determined by a federal district judge. This case is the result of an investigation by the Bloomington Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David P. Steinkamp.

Anyone who may have information about any human trafficking matter is encouraged to report that information to the FBI at 763-569-8000. For information about human trafficking, the National Human Trafficking Resource Center’s toll-free hotline (1-888-373-7888) is available to answer calls from anywhere in the country. 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.fbi.gov/about-us/investigate/civilrights/human_trafficking.

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—A federal indictment unsealed earlier today charges a 43-year-old Red Lake man with sexually abusing a woman on the Red Lake Indian Reservation. The indictment, which was filed on July 23, 2013, charges Alan James Lussier with one count of sexual abuse. The indictment was unsealed following Lussier’s initial appearance in federal court.

The indictment alleges that on March 13, 2011, Lussier caused the victim to engage in a sexual act by placing her in fear.

If convicted, Lussier 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 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.

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 explores current issues raised by professionals in the field and recommends “best practices” in prosecution strategies involving domestic violence, sexual assault, and stalking.

Violence against American Indian women occurs at epidemic rates. In 2005, Congress reported 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 as Caucasian women.

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—Earlier today in federal court in St. Paul, a 47-year-old Minneapolis felon pleaded guilty to one count of being a felon in possession of a firearm for possessing a .357-caliber revolver, a rifle and two shotguns. Carl Craig Larson, who was indicted on June 18, 2013, entered his plea before United States District Judge Susan Richard Nelson.

In his plea agreement, Larson admitted that on April 21, 2013, law enforcement officers responded to a burglary call at a home in Waseca County, where they found Larson inside the residence. Police went on to discover several pieces of jewelry in Larson’s pockets. They also found a loaded .357 revolver in the house, which Larson had admittedly possessed and had used to shoot at doors in attempting to enter the house.

During the execution of a search warrant on the car Larson drove to the burglary, officers uncovered three other guns. The guns matched the description of firearms that had been reported stolen during a burglary in LeSueur County on April 20, 2013. The guns included a seven-millimeter caliber 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 at least three of 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. Judge Nelson will determine Larson’s sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the LeSueur and Waseca county sheriff’s offices, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Sarah E. Hudleston.

 

 

MINNEAPOLIS—Earlier today in federal court, a 25-year-old Hastings man was sentenced for producing child pornography. United States District Judge Ann D. Montgomery sentenced Mark Matthew Cortes to 360 months in prison, along with a lifetime of supervised release, on one count of production of child pornography. Cortes was indicted on December 3, 2012, and pleaded guilty on April 9, 2013.

In his plea agreement, Cortes admitted that in November 2011, he knowingly persuaded a minor under the age of 12 to engage in sexually explicit conduct for the purpose of producing images of such conduct on his cellular telephone. Cortes also admitted that he transferred the images from his phone to his computer and then distributed them to another person. In addition, Cortes admitted that he committed a sexual act with the victim during production.

This case was the result of an investigation by the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.

Production of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.

This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”

 

 

MINNEAPOLIS—Earlier today in federal court, a 25-year-old Anoka man was indicted for possessing a nine-millimeter, semi-automatic pistol. Arlan Kaleb Schultz was charged with one count of being a felon in possession of a firearm.

The indictment alleges that on January 19, 2013, Schultz possessed the pistol. According to a law enforcement affidavit filed in the case, at approximately 9:00 p.m. on January 19, Coon Rapids police attempted to stop a vehicle for a traffic violation. The driver refused to yield and, instead, speeded away, ultimately colliding with another vehicle at the intersection of Seventh Avenue and Main Street in Anoka. The driver, later identified as Schultz, immediately exited the vehicle and fled on foot. Police shortly apprehended him. And during the subsequent execution of a search warrant on the vehicle, the officers found the loaded pistol under the front passenger seat. Schultz’s DNA was found on the grip of the pistol. Ammunition was located elsewhere in the vehicle.

Because he is a felon, Schultz is prohibited under federal law from possessing firearms at any time. His previous Anoka County convictions include simple robbery (2008), third-degree burglary (2009), fleeing a peace officer in a motor vehicle (2010), and fifth-degree controlled substance crime (2012). In addition, Schultz was also convicted in Sherburne County for prohibited possession of a stun gun (2011).

Since at least three of Schultz’s prior convictions constitute crimes of violence or major drug crimes, he is 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. The potential maximum penalty is life in prison. Any sentence would be determined by a federal district judge.

This case is the result of an investigation by the Coon Rapids Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Andrew R. Winter.

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—Yesterday in federal court, a 23-year-old St. Paul felon pleaded guilty to possessing a .22-caliber handgun. On August 20, 2013, Phuvanath Ronald Mounthachack pleaded guilty to one count of being a felon in possession of a firearm. Mounthachack, who was indicted on June 3, 2013, entered his plea before United States District Judge Patrick J. Schiltz.

In his plea agreement, Mounthachack admitted that on January 15, 2013, he made arrangements to sell a firearm to two individuals, one of whom was an undercover police officer. Mounthachack admitted instructing the individuals to meet him near the intersection of Interstate 94 and Lexington Avenue in St. Paul. At approximately 8:10 p.m., Mounthachack arrived at that location, carrying a .22-caliber, semi-automatic handgun along with some ammunition. In return for $500 in cash, he handed over the gun and ammunition to the two individuals.

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).

For his crime, Mounthachack faces a potential maximum penalty of ten years in prison. Judge Schiltz 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 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 approximately two dozen serious habitual criminals through Project Exile Minneapolis.

 

 

MINNEAPOLIS—Yesterday in federal court, the former postmaster of the Marble Post Office in Itasca County pleaded guilty to stealing funds from the office. On August 20, 2013, Jill Marie Rousse, age 39, of Calumet, pleaded guilty to one count of misappropriation of postal funds. Rousse, who was indicted on June 10, 2013, entered her plea before United States District Judge Ann D. Montgomery.

In her plea agreement, Rousse admitted that between August 2011 and October 2012, she stole money from the post office by either taking cash from the cash drawer or issuing money orders in her own name. Rousse also admittedly falsified reports regarding the sale of money orders and postage in order to conceal her theft. An audit of the post office identified shortages totaling $9,031.43 in cash and stamps.

For her crime, Rousse faces a potential maximum penalty of ten years in prison. Judge Montgomery will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the U.S. Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.

 

 

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 Judge Paul A. Magnuson sentenced Russell Raymond Royals, age 61, of Cottage Grove, to 120 months in prison; and Desmon Desmond Burks, age 38, of St. Paul, to 252 months in prison. Royals previously pled guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Burks was convicted on September 6, 2012, following a jury trial, of one count of conspiracy to commit bank fraud, two counts of aiding and abetting bank fraud, and two counts of aggravated identity theft.

Two related defendants were sentenced last month for their roles in this conspiracy. On July 23, 2013, Norman Scott Allen, age 44, of Minneapolis, was sentenced to 80 months in prison on one count of conspiracy to commit bank fraud and one count of bank fraud. On July 22, 2013, Frederick Adrianne Hamilton, age 57, also of Minneapolis, was sentenced to 57 months in prison on one count of conspiracy to commit bank fraud and two counts of bank fraud. Both men were convicted on September 6, 2012 following a jury trial. Twenty-three other defendants have been sentenced in this case thus far, while five 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, “The Minnesota Financial Crimes Task Force led this investigation, but the effort was a success because of the extraordinary collaboration by all of the agencies involved.”

Kelly R. Jackson, Special Agent in Charge of Internal Revenue Service-Criminal Investigations, St. Paul Field Office, which also participated in the investigation, said, “Investigating identity theft is a priority for IRS-Criminal Investigations. Today’s sentencings of Desmon Burks and Russell Royals should serve as a strong deterrent to those who are considering similar conduct. Law enforcement and the U.S. Attorney’s Office are serious about investigating identity theft crimes and holding those accountable who commit these types of crimes.”

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 IRS-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.

 

 

FOR IMMEDIATE RELEASE
August 13, 2o13

MINNEAPOLIS—Earlier today in federal court in St. Paul, a man pleaded guilty to conspiring to file false tax returns after admitting he had used the identity information of several children to generate false dependents. Rotimi Williams specifically pleaded guilty to one count of conspiracy to obstruct the lawful functioning of the Internal Revenue Service (“IRS”) and four counts of identity theft. Williams, who was indicted along with Ayo Aseph on April 15, 2013, entered his plea before United States District Judge Paul A. Magnuson.

In his plea agreement, Williams admitted that from about April 15, 2008, through about April 15, 2011, he conspired with others to obstruct the IRS in its legal obligation to collect income taxes. During that time, Williams was in the business of preparing and filing federal and state income tax returns for clients, his main office located in Brooklyn, New York. Williams had several clients in Minnesota, including Aseph.

Williams, who had clients in Minnesota and New York, admitted to generating false tax returns for certain New York clients by adding the names, social security numbers, and birthdates of children who were not their dependents. Williams did this in order to lower the amount of federal taxes owed, and, thereby, qualify for refunds, by claiming additional dependents on their tax returns. The dependent information involved minors from Minnesota, and were added to certain New York clients’ tax returns.

On June 12, 2013, Williams’ co-defendant, Ayo Aseph, pleaded guilty to one count of conspiracy. In his plea agreement, Aseph admitted that Williams prepared his tax returns starting in 2007, and that Williams was his employer until 2011. In 2008, Aseph, at Williams’ direction, obtained the identities of children not his own to claim on his income tax return for that year. Aseph admittedly gave his brother money in exchange for the identification information of two children that his brother knew. The identification information of a third child was also provided by one of Aseph’s co-workers. Those three children were claimed as dependents on Aseph’s 2009 tax return as well. And, for his 2010 tax return, one of the children as well as two other children were claimed as dependents.

For their crimes, both defendants face a potential maximum penalty of five years in prison for conspiracy. In addition, Williams faces a potential maximum penalty of 15 years on each count of identity theft. Judge Magnuson will determine their sentences at a future hearing, yet to be scheduled.

This case is the result of an investigation by the IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney John Docherty.

According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return-Preparer.

Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.

 

 

MINNEAPOLIS—Yesterday in federal court in Fergus Falls, a 48-year-old Red Lake man was sentenced for assaulting a man with an axe handle. On August 12, 2013, United States District Judge John R. Tunheim sentenced Joseph William Howard, Jr., to 105 months on one count of assault resulting in serious bodily injury. Howard was indicted on February 22, 2012, and pleaded guilty on May 29, 2012.

In his plea agreement, Howard admitted that on January 13, 2012, he assaulted the victim at a Redby residence. According to a law enforcement affidavit filed in the case, authorities were called to the residence, located on the Red Lake Indian Reservation, on that day. There, they found the victim, whose face had been severely beaten and lacerated. Officers also discovered blood splattered on the bed and walls in the room where the victim was staying. A bloody axe handle was ultimately uncovered behind the dryer in that home’s utility room. As a result of the assault, the victim suffered multiple fractures, and his left eye was so badly damaged that it had to be surgically removed.

This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. 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.

 

 

MINNEAPOLIS—Yesterday in federal court in Fergus Falls, a 32-year-old Minneapolis man was sentenced for committing aggravated sexual abuse against a child. On August 12, 2013, United States District Judge John R. Tunheim sentenced Joseph Valerian Parshall to 360 months in prison on two counts of aggravated sexual abuse against a child under the age of 12. Parshall was indicted on September 21, 2011, and was convicted on February 7, 2012.

According to the indictment and evidence presented at trial, Parshall committed two sexual acts against the child between February 1 and July 27, 2011. A law enforcement affidavit filed in the case states that on July 27, 2011, the Red Lake Tribal Police Department was informed of the abuse. The Federal Bureau of Investigation’s Fugitive Task Force arrested Parshall on August 31, 2011, in Minneapolis.

This case was the result of an investigation by the Red Lake Tribal Police Department and the FBI. It was prosecuted by Assistant U.S. 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.

 

 

MINNEAPOLIS— Earlier today in federal court, a 27-year-old St. Paul man pleaded guilty to carrying a .357-caliber revolver during and in relation to a drug-trafficking crime. Leroy Uriah Spivey, who was indicted on April 15, 2013, entered his plea before Chief United States District Judge Michael J. Davis.

In his plea agreement, Spivey admitted that on December 8, 2012, he got out of a taxi near an ongoing police investigation at a residence on George Street West in St. Paul, Minnesota. Spivey tried to walk away from investigating police officers while he admittedly tried to pull the .357 revolver from his waistband. Spivey then slid the firearm beneath a nearby car when finally complied with the officers’ command to stop and get down on the ground. Police recovered the weapon and found a large bag containing approximately 40 grams of marijuana on Spivey’s person. Spivey admittedly intended to distribute the bag of marijuana, which included 27 smaller bags of distribution amounts of marijuana. In his plea agreement, Spivey admitted that he possessed the firearm for security and protection during his drug distribution efforts.

For his crime, Spivey faces a potential maximum penalty of life in prison, with a mandatory minimum penalty of five years. Judge Davis 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.

 

 

MINNEAPOLIS—Earlier today in federal court, a man pleaded guilty to evading taxes for tax years 2006-2009. Roger Martin Pedley pleaded guilty to four counts of tax evasion. Pedley, who was indicted on April 9, 2013, entered his plea before Chief United States District Judge Michael J. Davis.

In his plea agreement, Pedley admitted owning and operating the Pine Ridge Golf Course in Motley as well as engaging in other business ventures. These ventures generated considerable cash income for Pedley. Pedley also admitted engaging in transactions with this cash at various banks in ways that avoided triggering the banks’ federal currency reporting requirements. In addition, Pedley admitted that he failed to declare the cash as income on his personal income tax returns, filed jointly with his wife for tax years 2006, 2007, 2008, and 2009.

For his crimes, Pedley faces a potential maximum penalty of five years in prison on each count. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney John Docherty.

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.

 

 

MINNEAPOLIS—Yesterday in federal court, a 37-year-old St. Paul man was sentenced for fraudulently obtaining funds from several financial institutions. On August 8, 2013, United States District Judge David S. Doty sentenced Christopher Terrelle Harness to 81 months in prison on one count of bank fraud and one count of aggravated identity theft. Harness was indicted on November 20, 2012, and pleaded guilty on March 11, 2013.

In his plea agreement, Harness admitted that from October 2007 through July 2012, he fraudulently obtained money from banks. Specifically, he and others, at his direction, opened accounts into which they deposited checks they knew were stolen or not backed by sufficient funds. Then, they made ATM withdrawals from the falsely inflated balances. In total, the victimized financial institutions sustained losses of between $30,000 and $400,000 because of this crime.

This case was the result of an investigation by the U.S. Postal Inspection Service and the Minnesota Financial Crimes Task Force. It was prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and Manda M. Sertich.

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

 

 

MINNEAPOLIS—Earlier today in federal court, a 45-year-old South Dakota man was sentenced for robbing two Twin Cities’ banks during the first week of 2012 and one North Dakota bank in December 2011. United States District Judge David S. Doty sentenced William Roy St. John, of Sisseton, South Dakota, to 188 months in prison on three counts of bank robbery. On April 3, 2012, St. John was indicted in connection with the Minnesota robberies, and on May 2, 2012, he was indicted for the North Dakota robbery. On December 5, 2012, St. John pleaded guilty to all three robberies.

In his plea agreement, St. John admitted that on January 2, 2012, he stole approximately $3,810 from the US Bank on Lyndale Avenue South in Bloomington; on January 4, 2012, he stole approximately $5,520 from the Wells Fargo Bank on County Road E in Arden Hills; and on December 31, 2011, he stole approximately $2,107 from the Bank of the West in Fargo, North Dakota.

Surveillance images from the two Minnesota banks indicated that the suspect was the same man. As part of a law enforcement investigation into those crimes, authorities executed a state search warrant at a Minneapolis apartment on January 5, 2012. Among other things, they recovered clothing similar to that worn by the robber.

On January 7, 2012, authorities arrested St. John in Bloomington. In addition to being charged federally with bank robbery, St. John was charged in Hennepin County District Court with attempted home invasion as well as attempted carjacking, kidnapping, and auto theft, all of which were unrelated to the bank robberies. St. John has since been convicted of those state charges, and he remains in state custody.

This federal bank robbery case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, the Bloomington Police Department, and the Ramsey County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.

 

 

MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 38-year-old Maple Plain man with conspiring to defraud mortgage loan lenders. The indictment, which was filed on July 16, 2013, specifically charges Alpha Rashidi Mshihiri with one count of conspiracy to commit bank fraud, three counts of bank fraud, two counts of wire fraud, one count of mail fraud, and one count of money laundering conspiracy. The indictment was unsealed following the Mshihiri’s initial appearance in federal court.

The indictment alleges that from June 2006 through January 2009, Mshihiri conspired with others to defraud and obtain money from mortgage lenders by means of false and fraudulent representations. Mshihiri operated Pristine Home Loans and allegedly recruited straw buyers to purchase residential real estate properties. The straw buyers submitted fraudulent loan applications to the mortgage lenders and, in some instances, used the stolen identity others in their applications.

In support of the false loan applications, Mshihiri purportedly created false documents, such as false W-2s and fraudulent paystubs and driver’s licenses, which the straw buyers then submitted to the mortgage lenders. In some instances, the proceeds of the loans were allegedly used to pay existing mortgages, financially benefiting Mshihiri and his un-named co-conspirators. In other situations, proceeds were purportedly paid as kickbacks to the straw buyers. Every property purchased through the scheme has gone into foreclosure, resulting in substantial losses to the victim lenders.

If convicted, Mshihiri faces a potential maximum penalty of 30 years on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Financial Crimes Task Force, the Internal Revenue Service-Criminal Investigations, the United States Secret Service and the U.S. Department of Housing and Urban Development-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.

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 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.

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—A federal indictment unsealed earlier today charges a 56-year-old Eden Prairie man with embezzling millions of dollars from his long-time employer. The indictment, which was filed on August 5, 2013, charges John Joseph Waters, Jr., with four counts of mail fraud, 16 counts of wire fraud, three counts of income tax evasion, and three counts of filing a false income tax return. The indictment was unsealed today, following Waters’ initial appearance in federal court. The indictment alleges that from at least 1999 through at least March 2012, Waters embezzled the funds to support his personal lifestyle.

The victim of the embezzlement is a former senior executive and shareholder at West Publishing, for whom Waters worked from approximately 1994 to1996. After retiring in 1996, the victim hired Waters to manage his numerous personal, business, and philanthropic pursuits. According to the indictment, Waters served in that capacity from 1996 to March 2009, during which time he was responsible for the oversight and management of the victim’s considerable assets, including numerous bank, trust, and investment accounts. To that end, Waters reportedly obtained signing authority on a number of the accounts.

The indictment alleges that Waters used that signing authority to transfer millions of dollars from his employer’s accounts to accounts controlled by Waters, all without his employer’s knowledge or permission. To conceal the scheme, Waters reportedly used a bank account he controlled in the name of a deceased foreign exchange student, made false entries in his employer’s books and records, and directed others to refrain from reviewing certain bank statements.

After Waters left his position and the alleged embezzlement was uncovered, he purportedly discouraged his former employer from reporting it to authorities. He allegedly went so far as to threaten his former employer, warning him that harmful information about him would be revealed if he turned Waters in. The indictment asserts that, as part of the scheme, in March of 2012, Waters commenced a civil lawsuit against his victim, falsely alleging that the funds he took while an employee constituted payment of “deferred compensation” owed him pursuant to an oral modification of his employment agreement.

The indictment also states that Waters failed to report as income on his 2007, 2008, and 2009 federal tax returns the millions of dollars he embezzled. Accordingly, he allegedly filed false tax returns for those three years in addition to committing tax evasion.

If convicted, Waters faces a potential maximum penalty of 20 years in prison on each count of mail and wire fraud, five years on each count of income tax evasion, and three years on each count of filing a false tax return. Any sentence would be determined by a federal district judge.

This case is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant United States Attorney William J. Otteson.

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—Yesterday in federal court, a 40-year-old Bloomington man was sentenced for his role in defrauding financial institutions and homeowners under the guise of a program to rescue homes from foreclosure. On July 31, 2013, United States District Court Judge John R. Tunheim sentenced Richard Scott Spady to 24 months in federal prison and two years of supervised release on one count of conspiracy to commit wire and mail fraud and one count of filing a false income tax return. On April 4, 2012, Spady was charged in a superseding indictment, and he pleaded guilty on September 5, 2012.

On April 22, 2013, Spady’s co-defendant, Michele Denise Sengstock, age 50, also of Bloomington, was sentenced to 14 months in federal prison on one count of wire fraud. Spady and Sengstock were ordered to pay $1,127,129.31 in restitution.

In his plea agreement, Spady admitted operating his scheme between 2005 and 2007. According to the charges in the case, Spady operated a company called Unified Home Solutions, or UHS, which identified homeowners who were facing mortgage foreclosure or already in foreclosure proceedings. UHS then found third party investors to purchase the homes, planning to sell them back to the original homeowners within one to two years. In the meantime, according to the Indictment in the case, the distressed homeowners could live in their homes.

Though in foreclosure, because they could not make mortgage payments, the homeowners still had some equity in their homes. When the properties were sold, checks were issued to the original homeowners for their equity. The homeowners then signed over the equity checks and the proceeds were used to pay expenses and divided among the investors, UHS, and others. In some cases, equity from one sale was used to purchase other distressed properties.

In his guilty plea, Spady admitted that false and mortgage loan applications and loan closing documents were prepared and that lenders were not told about the distribution of equity from the sales, including rolling one homeowner’s equity into the purchase of a subsequent home for an investor. According to the charges in the case, fewer than 10 percent of the homeowners who used UHS were able to retain their homes, and all the homeowners lost their equity in the process.

Spady also admitted that for the tax years 2006 and 2007, he filed federal income tax returns that failed to report over $100,000 in income, resulting in an underpayment of taxes of more than $30,000.
In her plea agreement, Sengstock admitted assisting in the fraudulent operations of UHS by preparing false mortgage loan applications and closing documents.

This case was the result of an investigation by the U.S. Postal Inspection Service and the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Robert M. Lewis.

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.

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 to investigate and prosecute 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, 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.

 

 

MINNEAPOLIS—Earlier today in federal court, a 26-year-old Michigan man, formerly of Chisholm, pleaded guilty to defrauding customers of Memory Lane Classics, a company that restored and rebuilt classic cars, out of more than $1 million. Edwin Scott Verdung pleaded guilty to one count of wire fraud and one count of transaction money laundering. Verdung, who was charged on May 14, 2013, entered his plea before United States District Judge Patrick J. Schiltz.

In his plea agreement, Verdung admitted that from April 2007 through May 2010, he took money from individuals who were in the market for classic automobiles or who brought their own vehicles into the shop to be restored or rebuilt. Despite accepting funds, Verdung failed to provide the vehicles or the restoration services promised. In some instances, he represented falsely that he had made progress in rebuilding or restoring a customer’s vehicle, when, in fact, he had done nothing along those lines. Verdung also admitted requiring some customers to make “progress” payments, providing those customers with fraudulent photographs as evidence of the progress made in restoring the vehicle.

For his crimes, Verdung faces a potential maximum penalty of 20 years in federal prison for wire fraud count and 10 years in federal prison for money laundering. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations, Minnesota Bureau of Criminal Apprehension, and the Chisholm Police Department. It is being prosecuted by Assistant U.S. Attorney Nicole A. Engisch.

 

 

MINNEAPOLIS—Earlier today in federal court, a 52-year-old Coon Rapids man was sentenced for stealing prosthetics and related supplies from the Fairview Medical Center and selling them online. United States District Court Judge Ann D. Montgomery sentenced Peter Stasica to two years of probation, to pay more than $88,000 in restitution, and to perform 100 hours of community service on one count of wire fraud. Stasica was charged on March 8, 2013, and pleaded guilty on April 11, 2013.

In his plea agreement, Stasica admitted that from February to August 2011, while he was the prosthetics manager for Fairview’s Orthotics and Prosthetics Department, he began removing prosthetics and prosthetic-related supplies without authorization to sell on eBay. In his capacity as prosthetics manager, Stasica’s duties included purchasing supplies and equipment, working with vendors, and advising patients about whether a new prosthetic limb was necessary.

In addition, Stasica admitted he solicited from several patients, under false pretenses, prosthetics they were not using. Stasica did not disclose to those patients that he intended to sell them. During the course of the scheme, approximately 40 buyers purchased more than 60 prosthetics and related supplies from Stasica via eBay.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David M. Genrich.

 

 

MINNEAPOLIS—A federal indictment unsealed yesterday charges a 20-year-old Redby man with assaulting two other people while on the Red Lake Indian Reservation. The indictment, which was filed on July 23, 2013, charges Ryan Devin Ravensborg with two counts of assault with a dangerous weapon and two counts of assault resulting in serious bodily injury. The indictment was unsealed following Ravensborg’s initial appearance in federal court.

The indictment alleges that on May 26, 2013, Ravensborg assaulted the two victims with a metal object. One of the victims had a depressed skull fracture and intracranial bleeding, while the second victim suffered a laceration on his scalp that required staples and a linear skull fracture.

If convicted, Ravensborg faces a potential maximum penalty of ten years in prison on each count. 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 John E. Kokkinen.

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.

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—Earlier today in federal court, a 38-year-old Madelia nurse pleaded guilty to fraudulently acquiring a controlled substance, namely oxycodone, while employed at an inpatient health care facility. Tess Marie Johnson pleaded guilty to one count of obtaining a controlled substance by fraud. Johnson, who was indicted on May 21, 2013, entered her plea before United States District Court Judge Patrick J. Schiltz.

In her plea agreement, Johnson admitted that in October 2012, she obtained for her own use Percocet tablets that had been intended for patients. Specifically, she removed the Percocet, which is oxycodone, that was intended for patients and replaced it with Tylenol tablets.

For her crime, Johnson faces a potential maximum penalty of four years in prison. Judge Schiltz will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the U.S. Drug Enforcement Administration and the Mankato Police Department. It is being prosecuted by Assistant U.S. Attorney Nicole A. Engisch.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a 31-year-old Minneapolis man was sentenced for the April 3, 2012, armed robbery of the West 7th Pharmacy in St. Paul. United States District Judge Susan Richard Nelson ordered Michael Brooks Bynum to serve 220 months in federal prison on one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of possession of a firearm in furtherance of a crime of violence. Bynum was indicted along with two co-defendants on July 10, 2012, and pleaded guilty on March 11, 2013.

Following today’s sentencing, Scott D. Sweetow, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), St. Paul Field Division, said, “Armed commercial robberies represent a serious and real threat to the public, one that ATF is fully committed to investigate with our partners, using tools, such as the Hobbs Act, to bring violent offenders to the bar of justice. The public should not have to worry that when they are getting a prescription filled or stopping at the store for a gallon of milk, that they may encounter violent, armed predators looking to steal prescription drugs at gunpoint.”

In his plea agreement, Bynum admitted that on April 3, 2012, he drove Ray James Brown, age 25, and Rayshawn Earl James Brown, age 21, both of Minneapolis, to the West 7th Pharmacy in St. Paul. The men entered the establishment wearing masks. They pointed a .40-caliber, semi-automatic pistol at store employees and demanded they get down on the floor. They ordered the pharmacist to dump drugs, such as Percocet, Vicodin, and Oxycontin, into a plastic bag. Grabbing the filled bag, they then ran from the premises to their get-away car. Bynum drove the car, which was stopped by police a short time later. Both of the Browns attempted to run from police, but they were quickly apprehended. The gun brandished during the robbery was recovered nearby.

Bynum and Ray Brown also committed the armed robberies of Lloyds Pharmacy in St. Paul on February 18, 2012; the Best Aid Pharmacy in St. Louis Park on March 15, 2012; and the Pro Pharmacy in St. Paul on March 27, 2012. Rayshawn Brown took part in the Pro Pharmacy robbery. In addition, Bynum has been previously convicted on other robbery and firearms charges and was on supervised release at the time he committed the recent four robberies.

On May 20, 2013, Rayshawn Brown was sentenced to 120 months on one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of possession of a firearm in furtherance of a crime of violence. He pleaded guilty on September 21, 2012. On May 15, 2013, Ray Brown was sentenced to 168 months on two counts of possession of a firearm during and in relation to a crime of violence. He pleaded guilty on September 19, 2012.

The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery in businesses involved in interstate commerce.

This case was the result of an investigation by the St. Paul Police Department, the St. Louis Park Police Department, the Hennepin County Violent Offender Task Force, and the ATF. It was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Surya Saxena.

 

 

MINNEAPOLIS—Earlier today in federal court, a 51-year-old Minneapolis man was sentenced for robbing the TCF Bank on West Lake Street in Minneapolis. United States District Court Judge Patrick J. Schiltz sentenced Phillip Leo Nietz to 151 months on one count of bank robbery, as well as three other bank robberies Nietz admitted in his plea agreement to also having committed. Nietz was indicted on October 10, 2012, and pleaded guilty on January 11, 2013. Nietz was ordered to pay restitution to the bank he had robbed.

In his plea agreement, Nietz admitted that on August 22, 2012, he walked into the West Lake Street branch of TCF Bank and gave a teller a note demanding money. He took approximately $3,794, placed it in a black bag, and left the premises on foot.

Nietz also admitted to robbing the three other banks in the same manner: a U.S. Bank in Roseville on August 14, 2012, where he stole $1,047; a Wells Fargo in St. Paul on August 28, 2012, where he stole $7,389; and a U.S. Bank in St. Paul on September 13, 2012, where he stole $1,045.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

 

 

MINNEAPOLIS—Yesterday in federal court in St. Paul, a 25-year-old man pleaded guilty to conspiring to distribute methamphetamine. Jose Alfredo Varela-Meraz, no known address, pleaded guilty to one count of conspiracy to distribute 500 or more grams of methamphetamine and one count of using, carrying, and possessing a firearm during and in relation to a drug-trafficking crime. Varela-Meraz, who was indicted on March 19, 2013, entered his plea before United States District Judge Susan Richard Nelson.

In his plea agreement, Varela-Meraz admitted that from the fall of 2009 through April 20, 2011, he conspired with others to distribute methamphetamine. He also admitted that during the period of the conspiracy, he obtained quantities of methamphetamine from various sources in Minnesota, Arizona, and elsewhere. He then distributed it to mid-level dealers. On March 25, 2010, police arrested Varela-Meraz in Minneapolis. At that time, they also seized 1,131.3 grams of methamphetamine and a loaded nine-millimeter handgun.

For his crimes, Varela-Meraz faces a potential maximum penalty of life in federal prison for each offense. 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. Drug Enforcement Administration, the Ramsey County Sheriff’s Office, the Hennepin County Sheriff’s Office, the Minnesota State Patrol, and the police departments of Maplewood, Minneapolis, and Roseville. 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.

 

 

MINNEAPOLIS—A federal indictment unsealed recently charges two Red Lake women in connection to kidnapping. The indictment, which was filed on July 23, 2013, specifically charges Melanie Rose Benais, age 27, and Ronalda Myra Smith, age 33, with one count of kidnapping. On July 24, 2013, the indictment was unsealed following the defendants’ initial appearance in federal court.

The indictment alleges that on June 13, 2013, the defendants kidnapped another person while on the Red Lake Indian Reservation and held that person against their will.

If convicted, the defendants face a potential maximum penalty of life in prison. Any sentence would 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 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.

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—Earlier today in federal court in Duluth, a 30-year-old Red Lake man pleaded guilty to running a vehicle off the road on the Red Lake Indian Reservation. Tony Lee Lussier specifically pleaded guilty to one count of assault with a dangerous weapon. Lussier, who was charged May 21, 2013, in a superseding indictment, entered his plea before United States District Court Judge Richard H. Kyle.

In his plea agreement, Lussier admitted that on May 12, 2013, while he was driving a motor vehicle, he chased another vehicle. That vehicle contained four people. Lussier admittedly crashed into the other vehicle, causing it to roll into the ditch. Then, Lussier attempted to assault the other vehicle’s occupants before returning to his vehicle and driving away.

For his crime, Lussier faces a potential maximum penalty of ten years 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 Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Laura M. Provinzino and Manda M. Sertich.

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.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a former employee of the United States Post Office pleaded guilty to issuing money orders to himself, among other offenses. Wayne E. O’Connell, age 52, of the northwestern Minnesota community of Shelly, specifically pleaded guilty to one count of misappropriation of postal funds. O’Connell, who was charged on July 5, 2013, entered his plea before U.S. District Court Judge Donovan W. Frank.

In his plea agreement, O’Connell admitted stealing cash from the money drawer at the Shelby post office and using funds received from the sale of post office box rentals for his own use. In addition, O’Connell admitted issuing postal money orders to himself without paying for them.

Authorities began investigating O’Connell after learning that money orders issued from the Shelby post office were being cashed prior to the dates they were reportedly issued. In December 2012, an audit of the post office identified shortages of $2,729.85 in cash and stamps.

For his crime, O’Connell faces a potential maximum penalty of ten years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the U.S. Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Kevin S. Ueland.

 

 

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.

 

 

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.

 

 

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.

 

 

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/

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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—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.

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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/