District of Minnesota
Press releases recorded for this federal judicial district.
Federal Inmate Pleads Guilty to Escaping from PrisonRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, an inmate who escaped from the Federal Prison Camp in Duluth in March 2013 and was on the run for six days pleaded guilty to that crime. Michael Joseph Krzyzaniak, age 64, of Minneapolis, specifically pleaded guilty to one count of escape from custody. Krzyzaniak, who was indicted on April 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Krzyzaniak admitted that on March 30, 2013, he left the custody of the federal prison camp without authorization. He was arrested on April 5, 2013, at a Burnsville motel. He was serving a 151-month sentence for a 2012 conviction in the District of Minnesota for wire fraud and tax evasion. According to a law enforcement affidavit filed in the current case, Krzyzaniak was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m.
For his crime, Krzyzaniak faces a potential maximum penalty of five years in federal prison, which may be tacked onto the sentence he is already serving. 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. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Shakopee Man Pleads Guilty to Using Other People’s Food StampsRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 47-year-old Shakopee man pleaded guilty to using other people’s food stamps. Chin Son Kim specifically pleaded guilty to one count of food stamp fraud. Kim, who was charged on April 18, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Kim admitted that between November 2010 and July 2012, he obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the true recipients of those benefits. To acquire the cards, he waited near a charity facility in St. Paul, as well as at other locations, and then approached people he thought might be in possession of them.
After obtaining a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, he would present the card to the grocer, who would swipe it through a food-stamp scanner, routinely noting a transaction of approximately $200. Kim would then receive cash, groceries, or store credit in that amount. Afterwards, he would return the card to its rightful owner, providing that person with cash in the amount of approximately half the transaction total. The loss to the SNAP program because of Kim’s action was approximately $29,816.
Each individual who receives SNAP benefits is issued an electronic benefit transfer (“EBT”) card, which contains a monthly allocated benefit amount that can be used at authorized retailers. The U.S. Department of Agriculture (“USDA”) reimburses those retailers for the benefit amounts redeemed. Only eligible food items may be acquired with food stamps, and some items, such as alcoholic beverages, tobacco products, and cell phone minutes are not eligible. Moreover, food stamps may not be redeemed for cash.
For his crime, Kim faces a potential maximum penalty of five years in federal prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the USDA-Office of Inspector General, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Former Toy Company Owner Sentenced for Failing to Pay over Federal Employment TaxesRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, the former owner of a toy company in Edina was sentenced for failing to pay over federal employment taxes. United States District Court Judge Paul A. Magnuson sentenced Kim Robert Calkins, former co-owner of Princess Soft Toys, Inc., to 12 months and one day in federal prison on one count of failure to pay federal employment taxes. Calkins was charged on September 11, 2012, and pleaded guilty on September 26, 2012.
In his plea agreement, Calkins admitted that from the third quarter of 2008 to the final quarter of 2010, he failed to pay to the Internal Revenue Services (“IRS”) the employment taxes withheld from employees of Princess Soft Toys. Despite receiving regular notices that the employment taxes were still due, Calkins neglected to pay the amount owed. The total tax loss in this case is $852,361.54.
This case was the result of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Nicole A. Engisch.In a related case, on February 8, 2012, Judge Magnuson sentenced Calkins’ wife and former co-owner of Princess Soft Toys, Sandra Lee Calkins, to 66 months in federal prison for defrauding Central Bank and 42 investors out of approximately $9 million. She was charged on April 29, 2011, and pleaded guilty on May 26, 2011.
In her plea agreement, Calkins admitted that between January of 2008 and March 5 of 2010, she falsified financial statements regarding the company in order to renew a $3.25 million line of credit at Central Bank. She specifically admitted including false information relative to revenue and net assets. As a consequence of the fraud, the credit line was renewed, and she made multiple draws against it, totaling $3,575,000. Central Bank suffered a loss of approximately $1.6 million because of her criminal behavior.
Calkins also admitted that between January of 2008 and 2010, she defrauded individuals into investing or loaning money to Princess Soft Toys through false financial statements or other misrepresentations. The total losses to individual investors exceeded $7 million.
This case was also the result of an investigation by the Federal Bureau of Investigation and the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Tim Rank.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.
Former Postmaster Indicted for Stealing Postal FundsRead the Press Release
MINNEAPOLIS—Recently in federal court, the former postmaster of the Marble Post Office in Itasca County was indicted for stealing funds from the office. On June 10, 2013, Jill Marie Rousse, age 39, of Calumet, was charged with one count of misappropriation of postal funds and one count of unlawful issuance of postal money orders.
The indictment alleges that between August 2011 and October 2012, Rousse stole money from the post office by either directly taking cash from the cash drawer or issued money orders in her name. In addition, Rousse falsified reporting documents regarding the sale of money orders and postage in order to conceal her theft.
If convicted, Rousse faces a potential maximum penalty of ten years in prison on the misappropriation count and five years on the unlawful issuance count. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney 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.Federal Jury Finds Mound Hedge Fund Manager Guilty of Lying to Investors in Connection with Investment in Petters Co.Read the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a hedge fund manager from Mound guilty of fraudulently raising money from individuals and through mutual funds for investment in Petters Company, Inc. (“PCI”). After a four-week trial, the jury convicted James Nathan Fry, age 59, on five counts of securities fraud, four counts of wire fraud, and three counts of making false statements to the United States Securities and Exchange Commission (“SEC”).
According to the evidence presented at trial, Fry raised hundreds of millions of dollars from investors using two hedge funds known as the Arrowhead Funds, which he then provided to PCI in exchange for substantial interest payments. Fry collected more than $30 million in fees from the money he raised from investors and provided to PCI.
Fry formed the Arrowhead Funds in collaboration with Frank Elroy Vennes, Jr. Vennes began raising money to invest with Petters in 1995, only a few years after he was released from federal prison, where he had been serving a sentence for money laundering, firearms, and narcotics charges. Fry used the Arrowhead Funds to solicit money from investors to invest exclusively in financing for PCI. All of the Arrowhead Funds’ transactions with PCI were done through Vennes, and any communication between Fry and Petters or his company had to go through Vennes.
Despite Vennes’s intimate involvement in all of the Arrowhead Funds’ dealings with Petters and PCI, Fry concealed Vennes’s involvement in the PCI transactions because he knew that investors would learn about Vennes’s criminal background and be deterred from investing. Over approximately eight years, Fry obtained hundreds of millions of dollars from investors, which he then provided to PCI, purportedly to finance the purchase of consumer electronics that Petters would later resell at a profit. All of the transactions between Arrowhead and PCI went through Vennes. And, although Vennes was in the middle of every single transaction between Arrowhead and PCI, Fry concealed Vennes’s role and criminal background from investors.
Fry also lied to investors by telling them that the Arrowhead Funds were getting paid directly by the big box retailers, which gave investors the false impression that there were real transactions underlying the PCI investments. In fact, the Arrowhead Funds never received a single payment from a retailer, and all payments on the PCI promissory notes came from PCI, which allowed the Petters Ponzi scheme to expand for years until it finally collapsed.
Finally, Fry lied to investors about significant problems with the PCI investments in 2007 and 2008. Fry told investors that the notes were “90-day notes,” meaning that they were paid off in 90 days. Beginning in the fall of 2007, payments on all the PCI notes held by Arrowhead became substantially later than 90 days, and almost half of the notes were not paid after 180 days and had to be extended to avoid going into default. Fry concealed this information from his investors. The concealment of this information was significant to new investors, who were deciding whether to place money with Arrowhead, and existing investors, who were assessing whether to withdraw from Arrowhead.
Fry also lied to federal authorities after the collapse of the Petters Ponzi scheme. In 2010, Fry gave sworn testimony before the SEC, and during that testimony, he claimed that he was unaware that the Arrowhead Funds were not paid directly from the retailers and that marketing materials containing false information were distributed.
Vennes pleaded guilty to aiding and abetting Fry in connection with these misrepresentations to the Arrowhead Funds’ investors.
For his crimes, Fry faces a potential maximum penalty of 20 years on each count of wire fraud and five years on each count of securities fraud and making false statements. United States District Court Judge Richard H. Kyle will determine Fry’s sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigation, and the U.S. Postal Inspection Service. It was being prosecuted by Assistant U.S. Attorneys Timothy C. Rank, Kimberly A. Svendsen, and Robert M. Lewis.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive 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.Apple Valley Woman Sentenced for Defrauding A Home Health Care Company and MedicaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an Apple Valley woman was sentenced for defrauding both her employer and Medica. United States District Court Judge David S. Doty sentenced Lori Jo Mueller, age 48, to 51 months on one count of wire fraud and one count of health care fraud in connection to the crime. Mueller was charged on January 9, 2013, and pleaded guilty on February 4, 2013. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
Mueller began working for Edelweiss, which is located in Maple Grove, in 2002, and she was ultimately promoted to the position of vice president of operations. In that capacity, she was responsible for the review and payment of corporate invoices, bookkeeping, and other financial matters. Mueller admitted using her access to the corporate checking account to issue payments to herself. She also concealed her actions from the company owners and made misrepresentations concerning the company’s financial state.
In addition, from March of 2010 through June of 2012, Mueller defrauded Medica, a non-profit corporation that provides health insurance products to individuals and families. She administered claims submitted to various insurers seeking reimbursement for services provided by Edelweiss nursing staff. In some instances, Mueller double-billed by allowing claims for the same services to multiple insurance providers. For example, Mueller allowed both Minnesota Medicaid and Medica to be billed for identical services provided to one client. The particular double-billing resulted in a double-payment to Edelweiss with Medicaid being the proper payer and Medica being the overpayer. As a result of this criminal behavior, Mueller defrauded Medica of over $600,000.
This case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services-Office of Inspector General (“DHHS-OIG”), and Minnesota Attorney General’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney David M. Genrich.
The U.S. Attorney’s Office participates in a task force with the Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office that focuses on home health care fraud trends. The task force includes the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal, state, and local law enforcement partners.
As a result of federal convictions for health care fraud, defendants are excluded from participating in federal health benefit programs, including Medicare and Medicaid. Exclusion determinations are made by the U.S. Department of Health and Human Services. Nationwide, more than 3,000 individuals were excluded from program participation in Fiscal Year 2010 based upon criminal convictions or patient abuse or neglect, license revocations, or other factors.
For more information, visit http://www.stopmedicarefraud.gov/or http://www.stopfraud.gov/protect-health.html.St. Cloud Man Indicted for Robbing TCF BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 36-year-old St. Cloud man was indicted for robbing the TCF Bank located at 1001 Fourth Street in St. Cloud. Fehd El Mehdi Kourima was specifically charged with one count of bank robbery.
The indictment alleges that on May 5, 2013, Kourima stole an undisclosed amount of cash from the bank. According to a law enforcement affidavit filed in the case, a man, later identified as Kourima, entered the bank at approximately 12:30 p.m. He gave a teller a note that stated, “Put as many $100 bills as you can into this envelope in fifteen seconds and no one gets hurt.” After receiving the money, Kourima left the bank and ran to a vehicle parked outside. Kourima was arrested later that day.
If convicted, Kourima faces a potential maximum penalty of 20 years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the St. Cloud Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Katharine T. Buzicky and Nathan P. Petterson.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Red Lake Man Indicted for Sexually Assaulting A WomanRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 24-year-old Red Lake man was indicted for sexually assaulting a woman while on the Red Lake Indian Reservation. Avery Wade Schoenborn was specifically charged with one count of sexual abuse. The indictment alleges that on May 7, 2013, Schoenborn engaged in a sexual act with the victim, who was incapable of declining participation in the act.
If convicted, Schoenborn faces a potential 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 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.
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.
Criminal Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 42-year-old Mexican national was indicted for entering the United States illegally after previously being deported as a criminal. Leopoldo Rivera-Leal was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on May 7, 2013, Rivera-Leal was found in the U.S. after being deported to Mexico in 2005, following a 1991 Texas conviction for first-degree burglary. On May 7, 2013, Rivera-Leal was turned over to U.S. Immigration and Customs Enforcement (“ICE”) by Steele County officials after he had finished serving a state sentence for drug possession.
If convicted of the federal charges now levied against him, Rivera-Leal 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 Andrew Dunne.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.
Delano Man Indicted for Robbing Buffalo McDonald’sRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 34-year-old Delano man in connection with the April 24, 2013, robbery of a McDonald’s in Buffalo. Matthew Dillon Sisneros was charged with one count of interference with commerce by robbery, pursuant to the Hobbs Act, one count of possession of a firearm in furtherance of a crime of violence, one count of being a felon in possession of a firearm and one count of possession of an unregistered firearm. On June 5, 2013, the indictment was unsealed following the defendant’s initial appearance in federal court.
The indictment alleges that on April 24, 2013, Sisneros took an undisclosed amount of money from the restaurant and threatened violence against the employees with a firearm. It also alleges that on April 24, Sisneros possessed a 12-gauge, semi-automatic, sawed-off shotgun with an obliterated serial number. The shotgun, which had a barrel length of less than 18 inches and an overall length of less than 26 inches, was not registered to him in the National Firearms Registration and Transfer Record, as required by law.
Because he is a felon, Sisneros, also known as Matthew Dylan Sisneros, is prohibited under federal law from possessing a firearm or ammunition at any time. He was previously convicted in Hennepin County for aggravated robbery (2000) and offering a forged check (2001).The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
If convicted, Sisneros faces a potential maximum penalty of 20 years in prison on the robbery count, a mandatory minimum penalty of ten years for possession of a firearm in furtherance of a crime of violence, and a potential maximum penalty of ten years on each of the other two counts. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the Buffalo Police Department, the Wright County Sheriff’s Office, and the United States 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.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Coon Rapids Man Indicted for Receiving, Possessing, Attempting to Distribute Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges a 54-year-old Coon Rapids man with receiving, possessing and attempting to distribute child pornography. The indictment, which was filed on May 20, 2013, charges Guy Edward Wheelock with seven counts of attempted distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. On June 4, 2013, the indictment was unsealed following Wheelock’s initial appearance in federal court.
The indictment alleges that on seven occasions between September 13 and 20, 2011, Wheelock attempted to distribute, via a computer, videos involving minors engaged in sexually explicit conduct. It also alleges that on February 2, 2012, Wheelock received videos of similar conduct, and that he possessed several videos of similar conduct.
If convicted, Wheelock faces a potential maximum penalty of 40 years for each attempted distribution and receipt count and 20 years on the possession count. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by the Minnesota Internet Crimes Against Children Task Force, the Minneapolis Police Department, and the Anoka County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Laura M. Provinzino.
Distribution, receipt and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”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.
Trucking Company Owner Indicted for Failing to Pay FICA TaxesRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, the owner of Dahl Trucking in Elmore, Minnesota, was indicted for avoiding payment of Federal Insurance Contribution Act (“FICA”) taxes on the wages of his employees from 2007 through 2010. Marlin Dahl was specifically charged with 13 counts of failure to collect and pay over FICA taxes.
The indictment alleges that from January 1, 2007, through March 31, 2010, Dahl executed a scheme to avoid paying FICA taxes to the Internal Revenue Service (“IRS”). As the owner of Dahl Trucking, Dahl had a duty to collect, account for, and pay over certain federal employment taxes, including both the employees’ and employer’s share of FICA taxes. Instead, he allegedly issued payroll checks that did not have any FICA withholdings deducted. Dahl also reportedly caused wages to be recorded in the company books at Dahl Trucking, also known as Elmore Truck and Trailer, as “road expense” reimbursements. In total, Dahl failed to pay to the IRS an estimated $168,219 in employees’ share of FICA tax.
If convicted, Dahl faces a potential maximum penalty of five years in prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by IRS-Criminal Investigation, the Minnesota Department of Employment and Economic Development, and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant United States Attorney Jeffrey S. Paulsen.
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.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.St. Paul Felon Indicted for Possessing A .45-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 30-year-old man was indicted for possessing a .45-caliber pistol. Chandan Prentiss Hurd, of St. Paul, was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on March 23, 2013, Hurd possessed the pistol. Because he is a felon, Hurd is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions include fleeing a peace officer in a motor vehicle in Ramsey County (2007), forgery in Dakota County (2006), and in Hennepin County, he was convicted of first-degree assault and attempted second-degree murder (2006) and first-degree damage to property (2004).
A law enforcement affidavit filed in the current case states that on March 23, police noticed a car stopped in the middle of Buchanan Street in northeast Minneapolis. Hurd was allegedly standing next to the vehicle. As the squad car pulled closer, Hurd allegedly approached it with his hands in his pockets. Officers reportedly ordered him to take his hands out of his pockets, but he failed to do so. Suspecting that Hurd may have a weapon, officers attempted to remove his hands from his pockets. During the struggle that ensued, officers reportedly discovered a pistol and magazine in Hurd’s right pocket. He was immediately arrested.If convicted of the current offense, Hurd faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minneapolis Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Minneapolis Felon Pleads Guilty to Possessing A .22-caliber PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 23-year-old Minneapolis man pleaded guilty to being a felon in possession of a .22-caliber pistol. On June 3, 2013, Marcus Rashad Davis specifically pleaded guilty to one count of being a felon in possession of a firearm. Davis, who was indicted on January 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Davis admitted that on June 15, 2012, he possessed the semi-automatic weapon. He was arrested after running from police, who were responding to a report of a man with a gun. Because he is a felon, Davis is prohibited under federal law from possessing a firearm at any time. His prior convictions include manufacture/delivery of a controlled substance (2008), possession with intent to deliver cannabis (2008), and burglary of a vehicle (2011), all in Illinois.
For this current offense, Davis faces a potential maximum penalty of ten years in 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 Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Hopkins Man Pleads Guilty to Making False Statements During Purchase of FirearmsRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 34-year-old Hopkins man pleaded guilty to making false statements to Federally Licensed Firearms Dealers (“FFL”) for the purpose of illegally purchasing firearms for individuals in Honduras. Jony Sevilla Cerna pleaded guilty to one count of making false statements to a FFL in connection with the acquisition of a firearm. Cerna, who was charged on March 15, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Cerna admitted that on March 29, 2012, he made a false written statement to a licensed Minnetonka firearms dealer when he was purchasing a nine-millimeter pistol. In that written statement, Cerna asserted that he was buying the gun for himself, when, in fact, he was not.
In addition, Cerna admitted to the court that he had made similar false statements to various licensed firearms dealers while purchasing 26 other firearms. In truth, he had purchased each of those firearms on behalf of individuals in Honduras.After acquiring the firearms under the false pretense that he was buying the firearms for himself, Cerna admittedly shipped or attempted to ship the firearms to Honduras by concealing them in electronic equipment. Cerna traveled to Honduras on several occasions to distribute the firearms he had shipped there to third parties and to take payment for the firearms he exported. Seven of the firearms Cerna shipped were discovered and seized at a freight-forwarding company in Miami, Florida.
For his crime, Cerna faces a potential maximum penalty of ten 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 U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.Tax Preparer Pleads Guilty to Defrauding the IRSRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a tax preparer pleaded guilty to devising and executing a scheme to defraud the Internal Revenue Service (“IRS”). Ieisha Smith pleaded guilty to one count of false claims. Smith, who was indicted on December 3, 2012, entered her plea before United States District Court Judge Ann D. Montgomery.
In her plea agreement, Smith admitted that she began the scheme in February 2009, when individuals came to her home for assistance in filing their income taxes. Specifically, she filed false tax returns on their behalf by claiming that taxes had been previously withheld when that was not the case and that refunds were therefore due, when she knew that to be false. The IRS calculated the total amount Smith claimed through the fraudulent tax returns to be approximately $765,000.
For her crime, Smith faces a potential maximum penalty of five years in federal 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 IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return-Preparer.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
St. Paul Man Pleads Guilty to Robbing US BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old St. Paul man pleaded guilty in connection with the December 13, 2012, armed robbery of the US Bank branch located at 711 Cleveland Avenue South in St. Paul. David Judin Greer pleaded guilty to one count of armed bank robbery and one count of brandishing a firearm during a crime of violence. Greer, who was indicted on February 5, 2013, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Greer admitted that on December 13, he stole $3,952 from the bank after showing the victim teller the revolver grip. According to a law enforcement affidavit filed in the case, a man, later identified as Greer, walked into the bank at approximately 2:00 p.m. He approached the teller counter, showed the gun, and demanded twenties, fifties, and one-hundred-dollar bills. The teller took money from the cash drawer and stuffed it into the white plastic bag that Greer provided. After demanding and receiving even more money, he fled the premises.
Immediately following the robbery, the Federal Bureau of Investigation released to the public digital images of the robber. Later that same day, the FBI received a telephone call from an anonymous individual who identified the robber as Greer. Authorities then began surveillance on Greer’s residence.
On December 29, 2012, the FBI received a call from the St. Paul Police Department, indicating officers there had just conducted a welfare check on Greer at the request of a family member. Officials subsequently transported Greer to Regions Hospital, where Greer gave law enforcement consent to search his residence. There, officers located the revolver used in the bank robbery. It was hidden above the duct work in the basement.
For his crime, Greer faces a potential maximum penalty of 25 years in prison on the armed bank robbery count, and a potential maximum penalty of life in prison on the brandishing count, which carries a mandatory minimum penalty of seven years. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the FBI and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Red Lake Man Pleads Guilty to Assaulting ManRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 19-year-old Red Lake man pleaded guilty to assaulting a man inside a home located on the Red Lake Indian Reservation. Micah James Waybenais pleaded guilty to one count of assault resulting in serious bodily injury. Waybenais, who was indicted on October 10, 2012, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Waybenais admitted that on September 11, 2012, he struck the victim with his hands and feet, dragged the victim back into a bedroom after tying speaker wire around his neck. The victim’s injuries included a potentially life-threatening laceration that ran from ear to ear on his neck, requiring hospitalization.
For his crime, Waybenais faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being 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.
Former Real Estate Agent Sentenced for Multimillion-dollar Mortgage Fraud SchemeRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 52-year-old White Bear Lake man was sentenced for his role in a mortgage fraud scheme that defrauded mortgage lenders out of at least $7 million. United States District Court Judge Susan Richard Nelson sentenced Robert Leo Rick to three years in prison on one count of conspiracy to commit mail and wire fraud. Rick was charged on December 23, 2011, and pleaded guilty on January 27, 2012.
In his plea agreement, Rick admitted that from 2005 through 2007, while employed as a real estate agent for Rick’s Realty, he worked with developers, builders, and investors seeking to “invest” in residential real estate. Rick admitted soliciting and conspiring with others to secure investors to purchase multiple residential properties, in transactions where those investors, or buyers, would receive undisclosed kickbacks from mortgage loan proceeds.
To generate the funds for the kickbacks, builders sold the homes at reduced prices, appraisers appraised the homes at inflated prices, and the mortgage loan lenders were informed only of the inflated prices, and thus awarded buyers mortgage loans based on the inflated prices rather than the true, reduced sales prices. The excess mortgage loan proceeds were then used to provide the buyers with the promised kickbacks, which were not disclosed to the mortgage loan lenders. All of this was known to Rick.
Through this scheme, Rick assisted builders and developers, including TJ Waconia, to sell approximately 102 residential properties with mortgage loans totaling approximately $26 million. He also served as property purchaser, directly or through the use of his then-wife’s name, for at least eight properties, and received a total of approximately $397,000 in purchaser kickbacks. To further his scheme, Rick admitted using the U.S. mail and commercial carriers, as well as interstate wire communication, to pass along information to investors.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Tracy L. Perzel.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.Bank Teller Pleads Guilty to Embezzling Money from BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 64-year-old woman from the southeastern Minnesota community of Wykoff pleaded guilty to embezzling approximately $35,520 from the Security State Bank where she was employed as the head teller. Cheryl Lynn Holzer pleaded guilty to one count of bank embezzlement. Holzer, who was charged on May 3, 2013, entered her plea before United States District Court Judge David S. Doty.
In her plea agreement, Holzer admitted that between December 2010 and February 2012, she took bundles of cash from the bank’s vault for her personal use, primarily to pay her mortgage and other bills. She worked at the bank, located in Wykoff.
For her crime, Holzer faces a potential maximum penalty of 30 years in prison. Judge Doty 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. It is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Maplewood Felon Sentenced for Possessing .32-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 35-year-old felon from Maplewood was sentenced for possessing a loaded .32-caliber revolver. United States District Court Judge Donovan W. Frank sentenced Derek Lee Preston to 180 months imprisonment on one count of being a felon in possession of a firearm. Preston was indicted on April 12, 2011, and pleaded guilty on February 4, 2013.
In his plea agreement, Preston admitted that on January 25, 2011, he possessed the weapon while a passenger in a vehicle that was stopped by Minneapolis Police. Officers found the weapon inside the jacket Preston was wearing when Preston was searched in connection with the traffic stop. In addition, officers found recovered 7.5 grams of marijuana and nearly four grams of crack cocaine.
Because he is a felon, Preston is prohibited under federal law from possessing firearms or ammunition at any time. Preston’s prior Hennepin County convictions include unlawful possession of a pistol (1997), attempted first-degree aggravated robbery (1997), fifth-degree controlled substance crimes (1999 and 2009), a second-degree controlled substance crime (2001), terroristic threats (2005), violation of a no-contact order (2009), attempted violation of a no-contact order (2009), and domestic assault (2010).
This case was the result of an investigation by the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It was prosecuted by Assistant U.S. Attorneys Surya Saxena and Andrew Dunne.
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 two dozen serious habitual criminals through Project Exile Minneapolis.Four Men Indicted for Using Stolen Information to File over 1,000 False Tax Returns That Claimed RefundsRead the Press Release
MINNEAPOLIS—Recently in federal court, four men were indicted for using stolen identification information to file tax returns that claimed false refunds. On May 21, 2013, Frantz Pierre, Ronnie Bussell, Christopher Torh, and Junior Tervil were charged with one count of conspiracy to defraud the United States. Pierre was also charged with one count of money laundering.
The indictment alleges that from July 2010 to May 2011, the defendants conspired with each other and others to defraud the Internal Revenue Service (“IRS”) by seeking tax refunds for which they were not entitled. Allegedly, the co-conspirators obtained the personal identifiers of other people and used that information, without those people’s knowledge, to create false 2009 and 2010 federal income tax returns that claimed refunds. In addition, the co-conspirators reportedly created false W-2 forms showing fabricated amounts of earnings and tax withholdings. The co-conspirators allegedly filed approximately 1,066 false tax returns, claiming approximately $6.9 million in fraudulent refunds.
The indictment also alleges that in order to receive the tax refunds, Pierre, Bussell, Torh, Tervil, and others created and established fictitious businesses in Minnesota that purportedly were involved in the preparation of income tax returns. The co-conspirators reportedly recruited others in Minnesota and elsewhere to do the same. Then, bank accounts were allegedly opened for each of the fake businesses, and the tax refunds were electronically deposited into those accounts. Finally, the Indictment alleges Pierre used some of the funds derived from this fraud scheme to purchase a residence in Parkland, Florida.
If convicted, the defendants face a potential maximum penalty of ten years in prison on the conspiracy count, and Pierre faces an additional potential maximum penalty of ten years on the money laundering count. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Karen B. Schommer.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.White Bear Lake Man Indicted for Using the Identity of Another PersonRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 27-year-old Mexican national living in White Bear Lake was indicted for using someone else’s name, date of birth, and Social Security number for the past several years. Jesus Emmanuel Castro was charged with one count of false claim of citizenship and one count of aggravated identity theft.
The indictment alleges that on July 19, 2012, Castro, also known as Jesus Immanuel Castro-Hernandez, provided the identification information of someone else on an I-9 Employment Eligibility Verification form and attested that he was a citizen of the United States. It also alleges that on July 19, 2012, Castro used the name, date of birth, and Social Security number of another person without lawful authority in relation to the crime of false claim of citizenship.
According to a law enforcement affidavit filed in the case, in April 2013, authorities were investigating an identity theft case involving Castro. On July 19, 2012, Castro applied for employment at an Eagan-based business and completed the employment forms using the victim’s identity.If convicted, Castro faces a potential maximum penalty of five years in prison on the false claim of citizenship count, and a mandatory minimum penalty of two years on the aggravated identity theft count. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the South St. Paul Police Department, the Ramsey Police Department, and the United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS – In the District of Minnesota, separate charges have been filed against three foreign nationals who allegedly entered the United States illegally after being deported as criminals.
The first indictment alleges that on April 21, 2013, authorities found Lorenzo Armendariz-Sanchez, age 45, in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 1998 Faribault County conviction for burglary in the first degree. On April 21, 2013, authorities identified Armendariz-Sanchez, also known as Lorenzo Sanchez Armendariz, as an illegal 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.If convicted of the federal charge now levied against him, Armendariz-Sanchez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
The second indictment alleges that on April 30, 2013, authorities found Victor Ernesto Hernandez-Navaez, age 31, illegally in the U.S. after he had been previously deported to Mexico. His deportation followed a 2001 Ramsey County conviction for possession of a controlled substance with intent to distribute. On April 30, 2013, he was identified as an illegal alien via the CAP while in custody in the Pine County Jail on drug possession charges.
If convicted of the federal charge now filed against him, Hernandez-Navaez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
The third indictment alleges that on March 23, 2012, authorities found Carlos Alberto Umansor-Mejia, age 31, illegally in the U.S. after he had been previously deported to Honduras. His deportation followed a 2007 Benton County conviction for criminal sexual conduct in the third degree. On March 23, 2012, he was identified as an illegal alien via the CAP while in custody in the Sherburne County Jail on a state fugitive warrant.
If convicted of the federal charge now filed against him, Umansor-Mejia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.
In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense. The men in these three cases will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Burnsville Man Indicted for Possessing with Intent to Distribute 5,480 Grams of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Burnsville man was indicted for possessing with intent to distribute more than five kilograms of methamphetamine. Albert Morris Johnson was charged with one count of possession with intent to distribute 500 or more grams of methamphetamine, one count of distribution of 50 or more grams of methamphetamine, one count of being a felon in possession of a firearm, and one count of possession of a firearm with a removed, obliterated, or altered serial number.
The indictment alleges that on May 1, 2013, Johnson possessed the methamphetamine, along with two handguns -- a nine-millimeter, semi-automatic and a .40-caliber, semi-automatic firearm with an obliterated serial number. Because he is a felon, Johnson is prohibited under federal law from possessing a firearm or ammunition at any time. He was previously convicted in Sherburne County in 2009 for second-degree assault with a dangerous weapon.
A state law enforcement affidavit filed relative to the present case states that during the execution of a search warrant at Johnson’s residence on May 1, 2013, authorities seized approximately 12 pounds of methamphetamine in the laundry room, the two firearms noted above, more than $16,000 in cash, a digital scale, a money counter, and packaging material.Authorities also executed a search warrant at Johnson’s Burnsville-based barbershop on that same day.
If convicted, Johnson faces a potential maximum penalty of life in prison on the possession with intent count, 40 years on the distribution count, ten years on the felon in possession count, and five years on the obliterated serial number count. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the Dakota County Drug Task Force, and the United States Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and 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.
Duluth Man Indicted for the Sex Trafficking of A ChildRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late today charges a 32-year-old Duluth man with the sex trafficking of a child for approximately seven months last year. The indictment, which was filed on May 7, 2013, charges Markeace Arque Canty with one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, and one count of receipt of child pornography. The indictment was unsealed following Canty’s initial appearance in federal court this afternoon.
The indictment alleges that from at least July 2012 through January 2013, Canty recruited, transported, and coerced the female victim, who was under the age of 18 at the time, to engage in commercial sex acts, from which Canty benefitted financially. Canty purportedly purchased “escort” advertisements on the website known as backpage.com and transported the female victim to locations in Duluth, Minneapolis, and elsewhere to meet advertisement responders at motels, where the victim engaged in sexual acts in exchange for money. Specifically, on September 12, 2012, law enforcement in Indiana responded to one of the advertisements and arrested the female victim after she reportedly agreed to perform sex acts in exchange for money. The advertisement in that instance purportedly included a phone number registered to Canty. The indictment also alleges that Canty attempted to arrange for the female victim’s release from jail after she was arrested on state prostitution charges.As to the charge of receipt of child pornography, the indictment states that on January 15, 2013, Canty received visual depictions via a computer of a minor engaged in sexually explicit conduct.
If convicted, Canty faces a potential maximum penalty of life in prison on each of the sex trafficking counts and ten years on the charge of receipt of child pornography. Any sentences would be determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation and the Duluth Police Department, with cooperation from U.S. Customs and Border Protection, the St. Louis County Attorney’s Office, the Fargo and Grand Forks, North Dakota, police departments, the Grand Forks County Sheriff’s Office in North Dakota, the Eau Claire, Wisconsin, police department, and the Porter County Sheriff’s Office in Indiana. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.
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 stated that approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice estimates that 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_traffickingAn 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.
Two Men Plead Guilty to Robbing the First State Bank of Bigfork in KelliherRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 20-year-old Bemidji man pleaded guilty to the December 10, 2012, armed robbery of the First State Bank of Bigfork, which is located in Kelliher, Minnesota. Travis Michael Burns specifically pleaded guilty to one count of aiding and abetting armed bank robbery. Burns, who was indicted on January 16, 2013, along with a co-defendant, entered his plea before United States District Court Judge Donovan W. Frank.
In his plea agreement, Burns admitted that on December 10, 2012, he drove Cody Lowell Troy, age 20, of Mizpah, to the bank for the purpose of robbing it. Burns also admitted waiting in the vehicle while Troy went inside the bank and then driving away again after Troy ran from the bank and got back in the vehicle.
According to a law enforcement affidavit filed in the case, Troy reportedly wore a white protective containment suit, a “Halloween” movie-style mask, Nike Air Jordan shoes, and black gloves during the robbery. Approaching a bank teller, he placed a black backpack on the counter, pointed the shotgun in the teller’s direction, and then pumped the gun. The teller immediately placed money in the backpack, which Troy grabbed before fleeing the premises.On December 12, 2012, police arrested Troy in Bemidji on an outstanding Itasca County warrant for failure to appear in connection with a prior felony. At that time, officers located a red pickup that matched the description of the vehicle two witnesses spotted in the vicinity of the Kelliher bank and driving away from the bank immediately following the December 10, 2012, robbery.
During the subsequent execution of a search warrant at the Bemidji apartment where Burns lived and Troy was staying, authorities seized shotgun shells, a hacksaw, and a loaded sawed-off shotgun, as well as the sawed-off gun stock and barrel. They also recovered a white protective containment suit, black gloves, Nike Air Jordan shoes, and a “Halloween” movie-style mask. The backpack used in the robbery and some money from the bank were recovered in Burns’ bedroom.
On May 14, 2013, Troy pleaded guilty to one count of brandishing a firearm during a crime of violence. In his plea agreement, he admitted robbing the bank while brandishing a 12-gauge, sawed-off shotgun that had a partially obliterated serial number. He stole approximately $3,738.
For his crime, Troy faces a mandatory minimum sentence of ten years in federal prison. Burns faces a potential maximum penalty of twenty- five years in federal prison. Judge Frank will determine their sentences at future hearings, yet to be scheduled.
This case was investigated by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Kevin S. Ueland.St. Paul Felon Pleads Guilty to Possessing .22-caliber Revolver and MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old St. Paul felon pleaded guilty to possessing a .22-caliber revolver and methamphetamine. Christopher Lee Rousseau specifically pleaded guilty to one count of being an armed career criminal in possession of a firearm. Rousseau, who was indicted on January 15, 2013, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Rousseau admitted that on December 3, 2012, he possessed the revolver, which was hidden along with several wrapped baggies of methamphetamine in the center console of the GMC Jimmy he was driving. Rousseau also admitted that he intended to distribute the methamphetamine, and that he carried the revolver in furtherance of his drug trafficking.
Because he is a felon, Rousseau is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Ramsey County include aiding and abetting second-degree burglary (2010) and fleeing police in a motor vehicle (2011). In addition, Rousseau was convicted in Pine County for fleeing police in a motor vehicle (2007) and, in Dakota County, for third-degree burglary (2010).Because those convictions constituted crimes of violence, Rousseau is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. Judge Schiltz will determine Rousseau’s sentence at a future hearing, yet to be scheduled.
A law enforcement affidavit filed in the current case states that at approximately 12:30 a.m. on December 3, 2012, officers stopped Rousseau for a traffic violation near the intersection of U.S. Highway 61 and Warner Road. He was then arrested for driving after cancellation of his license. During a search of Rousseau’s person, police found some ammunition and $385. A search of the vehicle led to the recovery of the gun and the methamphetamine.
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 Lola Velazquez-Aguilu.More Terrorism Sentences Imposed in Federal CourtRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two Rochester, Minnesota, women were sentenced for providing material support to al-Shabaab, a U.S.-designated foreign terrorist organization. United States District Court Chief Judge Michael J. Davis sentenced Amina Farah Ali, age 36, to 240 months in federal prison, followed by supervised release for life, on one count of conspiracy to provide material support to a Foreign Terrorist Organization al-Shabaab and twelve counts of providing material support to al-Shabaab. Chief Judge Davis also sentenced Hawo Mohamed Hassan, age 66, to 120 months in federal prison, followed by supervised release for life, on one count of conspiracy to provide material support to a terroristic organization and two counts of making false statements to authorities. Both women, who are naturalized U.S. citizens from Somalia, were indicted on July 6, 2010, and were convicted on October 20, 2011. They were remanded into custody following sentencing.
After court, John Carlin, Acting Assistant Attorney General for National Security, said, “Today’s sentences and those handed down earlier this week in Minneapolis underscore our commitment to dismantle networks that route funding and fighters from the United States to the al-Shabaab terror organization. These cases are the result of an extraordinary, long-term effort by many agents, analysts, and prosecutors, who worked tirelessly to ensure that the defendants were brought to justice.”
U.S. Attorney B. Todd Jones added, “Today’s sentencings illustrate yet again the high priority this office has placed on national security cases. Terrorist groups, such as al-Shabaab, threaten the safety of Americans, both abroad and here at home. These two defendants provided financial support to this U.S.-designated terrorist organization and then impeded the federal investigation into that matter by lying to authorities. This misguided conduct is unacceptable. With the assistance of our investigative partners, it will continue to be prosecuted vigorously, as was done in this case.”
Evidence presented at their trial proved that the defendants provided support to al-Shabaab from September 17, 2008, through July 19, 2009. Specifically, Ali communicated by telephone with Somalia-based members of al-Shabaab who requested financial assistance on behalf of the group. Ali, Hassan, and others raised money for the terrorist organization by soliciting funds door-to-door in Somali neighborhoods in Minneapolis, Rochester, and other cities in the U.S. as well as in Canada. Ali often sought the money under false pretenses, contending that it was to help the poor. The defendants also obtained funds by participating in teleconferences that featured speakers who encouraged listeners to make donations in support of al-Shabaab.
For example, on October 26, 2008, Ali hosted a teleconference during which an unindicted co-conspirator told listeners that rather than helping the poor and needy in Somalia, they should give to the mujahidin. Ali and Hassan recorded $2,100 in pledges at the conclusion of that teleconference. Then, on February 10, 2009, Ali conducted a fundraising teleconference during which she told listeners to “forget about the other charities” and focus on “the jihad.”
J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, said, “The sentencings today are a culmination of the efforts of the FBI’s Joint Terrorism Task Force and its commitment to stop terrorist-related activities in Minnesota. The FBI is pleased with the sentences that were handed down and will work with the community to deter others from engaging in this type of activity.”
Upon garnering funds, Ali and others transferred them to al-Shabaab through various money remittance companies. Ali and others used false names to identify the money’s recipients in an effort to conceal that the money was being provided to al-Shabaab. Ali directed no fewer than twelve money transfers to al-Shabaab.
On July 14, 2009, the day after the FBI executed a search warrant at Ali’s home, she telephoned her primary al-Shabaab contact, saying, “I was questioned by the enemy here . . . they took all my stuff and are investigating it . . . do not accept calls from anyone.”
As for Hassan, she made at least two false statements when questioned by federal agents about international terrorism.This case was the result of an investigation by the FBI’s Joint Terrorism Task Force. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen and Steven Ward of the Counterterrorism Section of the Justice Department’s National Security Division.
***Earlier today, Chief Judge Davis sentenced Adarus Abdulle Ali, age 29, of Columbia Heights, to 24 months in federal prison, followed by 36 months of supervised release, for making false statements while testifying before a federal grand jury in regards to a federal investigation known as “Operation Rhino.” That investigation focused on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight against Ethiopian troops and Somalia’s internationally recognized Transitional Federal Government and later joined al-Shabaab. Ali was sentenced today on one count of perjury after being charged with that crime on October 27, 2009, and pleading guilty on November 2, 2009.
In his plea agreement, Ali admitted that on December 17, 2008, he testified to a federal grand jury that he did not know anyone who had traveled to Somalia with Kamal Said Hassan, who was sentenced earlier this week, when, in truth, Ali attended a meeting during which Hassan and others discussed going to Somalia to fight for al-Shabaab. In fact, Ali later admitted that he had driven Hassan and another individual to the Minneapolis-St. Paul International Airport for their flights to Somalia.
On Monday of this week, Chief Judge Davis sentenced Hassan, age 28, of Minneapolis, to 120 months in federal prison, followed by 20 years of supervised release, after he pleaded guilty to providing material support to the Foreign Terrorist Organization al-Shabaab and to a conspiracy to kill Ethiopian soldiers. He was charged with those crimes on February 18, 2009. Specifically, Hassan had traveled to Somalia, graduated from an al-Shabaab training camp, and participated in an al-Shabaab ambush of Ethiopian soldiers. On August 12, 2009, he was also charged with and later pleaded guilty to making false statements to the FBI. Those charges were based on the fact that Hassan lied to FBI agents about his continued involvement with al-Shabaab after completing his training in the al-Shabaab camp. (See Monday’s press release for more details.)
Through its investigation, federal authorities learned that groups of men first departed the United States to fight with al-Shabaab in Somalia in October and December of 2007, with others leaving in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were trained from that point on. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.
In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. On October 29, 2008, one of those men, Shirwa Ahmed, who left Minneapolis in December 2007, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber in Somalia. On May 30, 2011, Farah Mohamed Beledi, an indicted individual who departed Minnesota in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged through Operation Rhino, and eight have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.
On Monday, Chief Judge Davis also sentenced Mahamud Said Omar, also known as Sharif Omar, age 46, of Minneapolis, to 240 months in federal prison, followed by life-long supervised release for conspiring to provide material support to a Foreign Terrorist Organization and conspiring to kill, kidnap, maim, and injure overseas. He was arrested in Netherlands in November of 2009 and extradited to the U.S. in August of 2011. In October of 2012, he was tried and convicted of these crimes. (See Monday’s press release for more details.)
On Tuesday of this week, Chief Judge Davis sentenced Omer Abdi Mohamed, age 28, of Minneapolis, to 144 months in federal prison, followed by 20 years of supervised release, after earlier pleading guilty to one count of conspiracy to provide material support to co-conspirators who intended to kill, kidnap, and main Ethiopian and Somali government troops. Abdifatah Yusuf Isse, Salah Osman Ahmed, and Ahmed Hussein Mahamud were each sentenced to 36 months in federal prison, followed by 20 years of supervised release, after earlier pleading guilty to related charges. Isse, Ahmed, and Mahamud cooperated with the United States and testified at the trial of Mahamud Said Omar. (For more details, see Tuesday’s press release.)
This case resulted from a long-term investigation conducted by the FBI’s Minneapolis Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, and William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.Crosby Felon Pleads Guilty to Possessing A Pistol and DrugsRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 32-year-old felon from the northern Minnesota community of Crosby pleaded guilty to possessing a .40-caliber, semi-automatic pistol along with approximately 30 grams of methamphetamine. Zachari Allen Kozar pleaded guilty to one count of being a felon in possession of a firearm and one count of possession with intent to distribute methamphetamine. Kozar, who was charged on May 14, 2013, entered his plea before United States District Court Judge Ann D. Montgomery.
In his plea agreement, Kozar admitted that on December 26, 2012, officers stopped Kozar for a traffic violation while he was near Brainerd, Minnesota, and later found the loaded handgun and drugs under the vehicle’s front passenger seat.
According to a law enforcement affidavit filed in the case, authorities began observing Kozar in the fall of 2012 as part of a drug trafficking investigation. During the December 26 stop, Kozar became agitated when a drug-sniffing canine was brought to the scene. The dog alerted police to a controlled substance. Police subsequently executed a search warrant on the vehicle, finding the loaded .40-caliber Steyr Mannlicher firearm in a nylon gun holster. They also recovered a second .40 caliber magazine, a plastic baggy containing approximately 2.8 grams of crack cocaine, as well as ten baggies of various amounts of methamphetamine and crack cocaine totaling approximately 32.1 grams. Kozar was arrested shortly afterward. Approximately $896 in U.S. currency was also found on his person.
Because he is a felon, Kozar is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in St. Louis County include two counts of theft of a motor vehicle (1999), fleeing police in a motor vehicle (1999 and 2004), third-degree burglary (1999), damage to property (1999), escape from custody (2001), fifth-degree drug possession (2004 and two counts in 2008), and third-degree drug possession (2009) . Because some of those convictions constitute crimes of violence, Kozar is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.
For his crimes, Kozar faces a potential maximum penalty of life in prison on the gun charge and 40 years for drug possession. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Lakes Area Drug Investigative Division, the Minnesota Bureau of Criminal Apprehension, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.Cass Lake Felon Pleads Guilty to Possessing A .357 RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old Cass Lake felon pleaded guilty to possessing a .357-caliber revolver. Anthony Duane Howard pleaded guilty to one count of being a felon in possession of a firearm. Howard, who was indicted on March 12, 2013, entered his plea before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Howard admitted that on December 1, 2012, he possessed the revolver near a residential complex on Cedar Avenue in south Minneapolis. When police arrived, Howard discarded the firearm, which was later recovered. Because he is a felon, Howard is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include first-degree assault (2003) and fourth-degree assault (2011).
For his crime, Howard faces a potential maximum penalty of ten years in prison. Judge Ericksen 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 LeeAnn K. Bell.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 two dozen serious habitual criminals through Project Exile Minneapolis.
Western Minnesota Man Indicted for Distributing and Possessing Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 62-year-old man from the western Minnesota community of Graceville with distributing and possessing images of child pornography. The indictment, which was filed on May 7, 2013, charges John Rolland Parent with five counts of distribution of child pornography and one count of possession of child pornography. The indictment was unsealed following Parent’s initial appearance in federal court.
The indictment alleges that between March 15, 2011, and September 25, 2011, Parent distributed via a computer visual depictions of minors engaged in sexually explicit conduct. It also alleges that on June 12, 2012, Parent possessed more than 800 images and videos of similar conduct. Authorities found the items on computers, hard drives, and other digital media that they seized during the execution of a state search warrant at Parent’s residence.
If convicted, Parent faces a potential maximum penalty of 40 years in prison on each distribution count, and 20 years on the possession charge. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Internet Crimes Against Children Task Force, the Big Stone County Sheriff’s Office, the Federal Bureau of Investigation, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant United States Attorney Andrew Dunne.
Distribution, and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”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.
Three Men Plead Guilty to Conspiring to Distribute More Than 500 Grams of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two Twin Cities-area men pleaded guilty to conspiring to distribute more than 500 grams of methamphetamine, among other drugs. Jose Francisco Hernandez-Perez, age 26, of West St. Paul, and Jose Enrique Mederos-Benitez, age 23, of Minneapolis, pleaded guilty to one count of conspiracy to distribute methamphetamine. In addition, Mederos-Benitez pleaded guilty to one count of using, carrying, and possessing a firearm during and in relation to a drug-trafficking crime. Both men were indicted on January 8, 2013, and entered their pleas before United States District Court Judge David S. Doty.
In their plea agreements, the defendants admitted that from the fall of 2012 through December 11, 2012, they, along with Fabio Adolpho Medal Lopez, age 57, of West St. Paul, conspired to distribute more than 500 grams of methamphetamine. On December 11, Mederos-Benitez and Hernandez-Perez had 1,786 grams of methamphetamine in the front seat of the car they were driving. Officers found the drugs when they stopped the car near the intersection of Robert Street and Thompson Avenue in West St. Paul. The men admitted they intended to distribute the methamphetamine later that day. Unknown to them, the buyer was an undercover officer. At the time of the stop, Mederos-Benitez also had a loaded .380-caliber, semi-automatic handgun tucked in his waistband. In a later search of Hernandez-Perez’s apartment, officers seized 903.9 grams of cocaine, 262.8 grams of methamphetamine, a scale, cutting agents, and other drug-related items.
On April 18, 2013, Lopez pleaded guilty to one count of conspiracy in connection to this case. In his plea agreement, he admitted conspiring with others to distribute methamphetamine. On October 23, November 19, and December 11, 2012, Lopez sold methamphetamine, totaling 216.7 grams, to a confidential informant.
For their crimes, all three defendants face a potential maximum penalty of life in federal prison, with a mandatory minimum penalty of ten years. In addition, Mederos-Benitez faces a consecutive 60-month sentence on the firearm charge, with a mandatory minimum consecutive sentence of five years. Because the federal criminal justice system does not have parole, offenders spend virtually the entire prison sentence imposed behind bars.
This case is the result of an investigation by the U.S. Drug Enforcement Administration, the St. Paul Police Department, and the Minnesota State Patrol. 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.
Redby Man Sentenced for Harboring A FugitiveRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 23-year-old Redby man was sentenced for harboring a fugitive last spring. On May 13, 2013, United States District Court Judge John R. Tunheim sentenced Andrew Oakgrove to 30 months in prison on one count of harboring and concealing a fugitive. Oakgrove was indicted on December 10, 2012, and pleaded guilty on February 6, 2013.
In his plea agreement, Oakgrove admitted that on April 30, 2012, he concealed Jason King from federal authorities. King was wanted on a federal arrest warrant for his indictment in connection to the December 30, 2011, armed robbery of Newby’s Market in Bemidji. Oakgrove also admitted leading police on a high-speed pursuit over several miles. Both men were arrested following the pursuit.
This case was the result of an investigation by the Red Lake Tribal Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Man Indicted for Making Bomb Threats at Minneapolis-St. Paul International Airport and MOARead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 22-year-old man, formerly of Maine, was indicted for making bomb threats at the Minneapolis-St. Paul International Airport and the Mall of America (“MOA”). Dana William Ashey was specifically charged with two counts of false information and hoaxes.
The indictment alleges that on April 12, 2013, Ashey 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 could go off by 3:00 a.m. At 2:42 a.m. that same day, another bomb threat was allegedly phoned in to security dispatch for the MOA. The caller in that instance purportedly 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 allegedly received yet another bomb threat. Authorities traced the call and found the man still inside the MOA. The man, later identified as Ashey, reportedly possessed the cell phone that was used to deliver the bomb threats.If convicted, Ashey faces a potential maximum penalty of five years in federal prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation’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 United States Attorney 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.Four More Men Sentenced for Providing Material Support to TerroristsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, four more men were sentenced for their roles in terrorism offenses. United States District Court Chief Judge Michael J. Davis sentenced Omer Abdi Mohamed to 144 months in federal prison, followed by 20 years of supervised release. He was ordered to remain in the custody of the Bureau of Prisons. Abdifatah Yusuf Isse, Salah Osman Ahmed, and Ahmed Hussein Mahamud were each sentenced to 36 months in federal prison, followed by 20 years of supervised release. Isse, Ahmed, and Mahamud cooperated with the United States and testified at the trial of Mahamud Said Omar. Yesterday, Judge Davis sentenced Omar to 20 years in prison following his conviction at trial for numerous terrorism offenses relating to his provision of money to al-Shabaab fighters and the facilitation of travel for young men from Minnesota to join al-Shabaab, a U.S.-designated Foreign Terrorist Organization based in Somalia.
Relative to today’s sentencings, Omer Abdi Mohamed, age 28, of Minneapolis, pleaded guilty on July 18, 2011, to one count of conspiracy to provide material support to co-conspirators who intended to murder, kidnap, or main Ethiopian and Somali government troops. Abdifatah Yusuf Isse, age 29, of Minneapolis, pleaded guilty on April 24, 2009, to one count of providing material support to terrorists. Salah Osman Ahmed, age 30, of Minneapolis, pleaded guilty on July 28, 2009, to one count of providing material support to terrorists. And Ahmed Hussein Mahamud, age 28, formerly of Eden Prairie but most recently of Westerville, Ohio, pleaded guilty on February 6, 2012, to one count of conspiring to provide material support to al-Shabaab.
Following today’s sentencings, United States Attorney B. Todd Jones said, “These defendants, by providing material support to a designated terrorist organization, broke both the law and the hearts of family members across the Twin Cities. They facilitated the travel of other men to Somalia to fight or they themselves traveled to fight, often leaving Minnesota in the dead of night, without so much as a word to their parents. Today’s sentences reflect not only the misguided and insidious nature of their crimes, but also the importance of cooperation and community involvement in preventing potential acts of terrorism.”
J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, added, “The sentencing hearings of these four young men serve as reminders that the FBI will continue its efforts to thwart the radicalization of our youth through both investigations and engagement of our community. We remain steadfastly committed to each.”
In his plea agreement filed on July 18, 2011, Omer Abdi Mohamed admitted that between September and December of 2007, he assisted men from Minneapolis in traveling to Somalia to fight with al-Shabaab, knowing that once there, the men intended to murder, kidnap, or main Ethiopian and Somali government troops. Mohamed specifically attended meetings at a Minneapolis mosque, restaurant, and private residence, where he and his co-conspirators formed a secret plan that called for Somali men residing in Minneapolis to travel to Somalia to join al-Shabaab. He also facilitated the travel of several of these young men, helping them obtain plane tickets as well as the false itinerary needed by one man to mislead his family about the purpose of his travel. Mohamed was also present in Minneapolis when money was raised for such travel. Many of those donations came from unsuspecting members of the Somali-American community, who were told the money was to be used for Somalia relief efforts.
In his plea agreement filed on April 24, 2009, Abdifatah Yusuf Isse admitted that during 2007, he met other men at a Minneapolis mosque to conspire to provide money and people to fight in Somalia. Then, on December 8, 2007, he traveled to Somalia and joined al-Shabaab. While there, he participated in fund-raising calls back to Minnesota in an effort to garner money to purchase his own AK-47 rifle. In Somalia, Isse stayed at an al-Shabaab safe house and briefly attended an al-Shabaab training camp before quitting the camp in the Spring of 2008.
In his plea agreement filed on July 28, 2009, Salah Osman Ahmed admitted that in October 2007, he conspired with others in Minneapolis to provide money and people to al-Shabaab. To that end, he raised money from the Somali-American community in Minnesota under false pretenses. Then, on December 6, 2007, Ahmed traveled from Minneapolis to fight in Somalia. While in Somalia, he received basic training from al-Shabaab on AK-47s, rocket-propelled grenades, and machine guns. He also assisted in building a training camp for al-Shabaab, before quitting camp with Isse.
In his plea agreement filed on February 6, 2012, Ahmed Hussein Mahamud admitted that from 2008 through February of 2011, he conspired with others to provide money and people to al-Shabaab. Specifically, in the summer of 2008, he assisted with fundraising under false pretenses, claiming the money raised would be used for a local mosque or to help orphans in Somalia, when, in fact, it was for purchasing airline tickets and paying other expenses for men who traveled from Minneapolis to Somalia to join al-Shabaab. In 2009 and 2010, he also conspired to send money to an al-Shabaab fighter to assist in buying weapons. He sent money via wire transfers to a co-conspirator in Somalia, knowing the money would be used to purchase weapons or otherwise support al-Shabaab.
This case arose out of “Operation Rhino,” a federal investigation that has focused primarily on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight with al-Shabaab. The earliest groups of men departed the United States in October and December of 2007, while others left in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were trained from that point on. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.
In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. On October 29, 2008, one of those men, Shirwa Ahmed, who left Minneapolis in December 2007, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber in Somalia. On May 30, 2011, Farah Mohamed Beledi, an indicted individual who departed Minnesota in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged through Operation Rhino, and eight have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.
These cases resulted from a long-term investigation conducted by the FBI’s Minneapolis Joint Terrorism Task Force.
The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, and William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.Former Personal Care Attendant Sentenced for Stealing the Identity of A Minor in Her CareRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former Twin Cities personal care attendant was sentenced for stealing the identity of a minor in her care. United States District Court Judge Richard H. Kyle sentenced Charnell Alene Hudson, age 40, unknown residence, to 42 months on one count of mail fraud and one count of aggravated identity theft, as well as pay restitution to the victims. Hudson was indicted on July 23, 2012, and pleaded guilty on November 19, 2012.
In her plea agreement, Hudson acknowledged that between June 2008 and September 2010, she devised and executed a scheme to defraud by stealing the identity of a minor in her care. In 2005, Hudson worked as a personal care attendant for the elderly and disabled in the Twin Cities area. That year, she was hired to provide care for a minor at the minor’s home. In 2006, the minor moved in with Hudson. Hudson assumed responsibility for all aspects of the minor’s care and had access to all of the minor’s personal identifying documents. When the minor moved out the next year, Hudson kept all of the minor’s identifying documents and information.Hudson used the minor’s Social Security card and birth certificate to obtain a Minnesota driver’s license and a title for a vehicle. Since Hudson had a criminal history that prevented her from opening a licensed daycare, she also used the minor’s identity to establish a business called “Lil Dumplin’s Daycare,” which allowed her to receive $70,000 from Ramsey County pursuant to a contract to provide services to the community. On March 25, 2010, Hudson also used the minor’s identity to purchase a $153,000 home in St. Paul, Minnesota. Hudson then used the minor’s identity to send monthly payment checks of $916.12 to the seller of the house.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Social Security Administration’s Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Former Letter Carrier Sentenced for Stealing MailRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former U.S. postal carrier was sentenced for stealing from the mail he delivered. United States District Court Judge John R. Tunheim sentenced Giang Nguyen, age 49, of Superior, Wisconsin, to two years of probation, along with payment of restitution, and 100 hours of community service on one count of theft of mail by a postal employee. Nguyen was charged via an Information on September 6, 2012, and pleaded guilty on September 26, 2012.
Following today’s sentencing, Pete Gately, Special Agent in Charge of the U.S. Postal Service-Office of Inspector General (“USPS-OIG”), said, “The majority of U.S. Postal Service employees are dedicated public servants who take great pride in ensuring the sanctity and security of the U.S. Mail. Unfortunately, Giang Nguyen betrayed the trust placed in him, and his actions resulted in deserved consequences for violating that trust. Today’s outcome demonstrates the ongoing commitment of the USPS-OIG and the U.S. Attorney’s Office to vigorously investigate and prosecute those matters. The public can remain confident that the USPS-OIG will continue to ensure the security of their mail.”
In his plea agreement, Nguyen admitted that from March 2010 to January 7, 2011, he removed applications for Menards rebate checks, the actual rebate checks, and Menards Big Game Money Cards from the mail he was entrusted to deliver. During this period, Nguyen was employed by the Duluth Post Office. Nguyen used the rebate checks and Big Game Money Cards that he stole to make purchases at Menards. He also altered the stolen rebate check applications so that Menards would issue the checks to him, rather than the customers on his route. In total, Nguyen stole at least 77 pieces of mail intended for Menards and residents on his route. Through his activity, Nguyen stole at least $1,456.75.
This case was the result of an investigation by the U.S. Postal Service-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.Former Chisholm Resident Charged with Defrauding Customers of Classic Car Restoration CompanyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Michigan man, formerly of Chisholm, was charged with defrauding customers of Memory Lane Classics, a company that restored and rebuilt classic cars. Edwin Scott Verdung was specifically charged via an Information with one count of wire fraud and one count of transaction money laundering. He allegedly defrauded customers out of more than $1 million.
From April 2007 through May 2010, Verdung purportedly 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 the funds, however, Verdung allegedly failed to provide the vehicles or the restoration services promised. In some instances, he reportedly 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 allegedly required some customers to make “progress” payments, providing those customers with fraudulent photographs as evidence of the progress made in restoring the vehicle. Verdung spent the money he received on things other than restoring vehicles as he had promised.If convicted, Verdung faces a potential maximum penalty of 20 years in federal prison on the wire fraud count and 10 years in federal prison on the transaction money laundering count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation, Minnesota Bureau of Criminal Apprehension, and the Chisholm Police Department. It is being prosecuted by Assistant United States Attorney Nicole A. Engisch.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
California Man Indicted for Allegedly Distributing Crack Cocaine and Marijuana in MinnesotaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 30-year-old man from Sacramento, California, was indicted for allegedly distributing controlled substances in Minnesota. Demar Deshawn Powell was specifically charged with one count of conspiracy to distribute or possess with intent to distribute a controlled substance and one count of attempt to distribute or possess with intent to distribute a controlled substance.
The indictment alleges that on September 21, 2012, Powell distributed a controlled substance. A law enforcement affidavit filed in the case states that on September 20, 2012, a suspicious package came into the Minneapolis-St. Paul International Airport. An officer in the K-9 unit purportedly notified authorities that a drug-sniffing dog had alerted to narcotics in the package. During the subsequent execution of a search warrant on the parcel, which was being shipped from Sacramento to a Bloomington address, authorities allegedly found approximately 283 grams of crack cocaine and 123.5 grams of marijuana. On September 21, 2012, the package was delivered to the Bloomington address. The police then executed a search warrant on the package and arrested Powell when he later claimed it.If convicted, Powell faces a potential maximum penalty of life in prison, because he has been convicted of felony drug charges in the past. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Inspection Service, the Bloomington Police Department, and the Minneapolis-St. Paul International Airport Police Department, with cooperation from the Sacramento County Sheriff’s Office in California. The case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
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.
Two Local Men Sentenced for Supporting Foreign TerroristsRead the Press Release
MINNEAPOLIS—Today in federal court, U.S. District Court Chief Judge Michael J. Davis sentenced two local men for providing material support to foreign terrorists. Mahamud Said Omar, also known as Sharif Omar, age 46, of Minneapolis, was sentenced to 180 months in federal prison on each of Counts 1 through 4, and 240 months in federal prison on Count 5, with the prison sentences to run concurrently. He was also ordered to remain on life-long supervised release once he has served his prison term. Kamal Said Hassan, age 28, of Minneapolis, was sentenced to 120 months in federal prison on each of Counts 1 and 2 and 96 months in federal prison on Count 3, to be served concurrently, followed by 20 years of supervised release.
Omar was indicted on August 20, 2009, on Count 1: conspiracy to provide material support to terrorists; Count 2: providing material support to terrorists; Count 3: conspiracy to provide material support to a Foreign Terrorist Organization; Count 4: providing material support to a Foreign Terrorist Organization; and Count 5: conspiracy to kill, kidnap, maim, and injure overseas. He was arrested in the Netherlands in November of 2009 and extradited to the United States in August of 2011. In October 2012, he was tried and convicted of these crimes. He remains in custody.On February 18, 2009, Hassan pleaded guilty to Counts 1 and 2 of an information, alleging he provided material support to terrorists and providing material support to the Foreign Terrorist Organization al-Shabaab. He admitted that he had traveled to Somalia, had graduated from an al-Shabaab training camp, and had participated in an al-Shabaab ambush of Ethiopian soldiers. Then, on August 12, 2009, he was charged with and entered a guilty plea to Count 3 of a superseding information, alleging that he made false statements to the Federal Bureau of Investigation (“FBI”) during interviews with the FBI in early 2009. Those charges were based on the fact that Hassan had lied to the FBI about his continued involvement with al-Shabaab after completing training in an al-Shabaab camp. He pleaded guilty to that crime and remains in custody.
Following today’s sentencings, John Carlin, Acting Assistant Attorney General for National Security, said, “With today’s sentences, two individuals who played crucial roles in raising funds and recruiting fighters from the United States to assist al-Shabaab are being held accountable. I thank the many agents, analysts, and prosecutors responsible for this extensive investigation and the many successful prosecutions that have resulted.”
U.S. Attorney B. Todd Jones added, “Fighting terrorism, whether at home or abroad, remains the number-one priority of the U.S. Department of Justice. To that end, we must continue to counter violent extremism and radicalization through tough prosecution whenever necessary and education and outreach efforts whenever possible. We need to keep our young people from being recruited and trained by foreign terror organizations, not only because of the threat to themselves and others elsewhere in the world but because of the danger they pose if they return to this country.”
From September 2007 through August 2009, Omar, a Somali citizen who was a lawful permanent resident of the United States, conspired with others to provide financial assistance as well as personnel to al-Shabaab, a Somali group designated a Foreign Terrorist Organization by the U.S. State Department in March 2008. Specifically, while on a trip to Somalia in early 2008, Omar visited an al-Shabaab safe-house, providing those in charge with hundreds of dollars for the purchase of AK-47 assault weapons, to be used by the Minneapolis men who had traveled there to fight with al-Shabaab. After returning to the United States, Omar facilitated the travel of several young men from Minnesota to Somalia, where they trained with and fought for al-Shabaab. In the fall of 2008, he assisted six additional men, some of whom were as young as 17 years of age, in traveling from Minnesota to Somalia. Later that year, Omar left the United States for Saudi Arabia and eventually sought asylum in the Netherlands.
Prior to departing from Minnesota in December 2007, Hassan engaged in fund-raising and attended meetings at a Minneapolis mosque, restaurant, and private residence for the purpose of developing and implementing the plan to induce Somali men in Minneapolis to travel to Somalia to fight for al-Shabaab. Once in Somalia, he participated in, among other things, an attack by al-Shabaab on a convoy of Ethiopians who were traveling in Somalia. In addition, he assisted in the construction of an al-Shabaab training camp, and he appeared in an al-Shabaab propaganda video that encouraged others to travel to Somalia and join al-Shabaab.J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, said, “Today marks a significant point in our efforts to identify and neutralize the efforts of al-Shabaab to support terrorist operations from their American Diaspora. It represents years of hard work by the FBI Joint Terrorism Task Force, our many state, local, and federal partners, as well as countless courageous leaders and parents in the Minneapolis Somali community. While the sentencing today represents closure to two very significant cases, our overall investigation continues with our full commitment.”
This case arose out of “Operation Rhino,” a federal investigation that has focused primarily on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight with al-Shabaab against Somalia’s internationally recognized Transitional Federal Government and African Union peacekeeping troops in Somalia.
The earliest groups of identified “travelers” departed the United States in October and December of 2007, while others left in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were thereafter trained. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.
In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. One of those men, Shirwa Ahmed, who had resided at the safe house with Omar and Hassan, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings on October 29, 2008, in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber. On May 30, 2011, Farah Mohamed Beledi, one of the men charged with terrorism offenses in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged in the course of Operation Rhino, and eight defendants have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.
These cases were the result of an investigation by the FBI’s Minneapolis Joint Terrorism Task Force, with the assistance of the Netherlands National Police Service, the Netherlands Ministry of Security and Justice, the Justice Department’s Office of International Affairs, the U.S. Department of State, and the U.S. Department of Defense.
It was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, as well as William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.Minneapolis Felon Pleads Guilty to Possessing A .44-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 28-year-old felon from Minneapolis pleaded guilty to possessing a .44-caliber revolver. Eugene Denzel Johnson pleaded guilty to one count of being a felon in possession of a firearm. Johnson, who was indicted on November 20, 2012, entered his plea before United States District Court Judge Ann D. Montgomery.
In his plea agreement, Johnson admitted that on September 5, 2012, he was riding in a vehicle that police attempted to stop following a traffic violation. Johnson admitted that he jumped out of the passenger side of the vehicle, with a gun tucked into his waistband, and ran. Officers spotted the gun when Johnson exited the vehicle and chased him. Johnson was apprehended nearby a short time later. Officers recovered the gun after they used a canine to trace the path Johnson had taken.
Because he is a felon, Johnson is prohibited under federal law from possessing firearms at any time. He was previously convicted in Hennepin County for first-degree aggravated robbery (2005 and 2010), in Ramsey County for theft of a motor vehicle (2003), and in Dakota County for criminal damage to property (2003).For his crime, Johnson faces a potential maximum penalty of ten years in federal prison. Judge Montgomery 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 under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.Fridley Man Sentenced for Robbing Retail StoreRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 46-year-old Fridley man was sentenced for robbing a Discount Tobacco and Groceries retail store at 315 Osborne Road Northeast in Fridley. United States District Court Judge Joan N. Ericksen sentenced Steven Eugene Daniels to 160 months in prison on one count of interference with commerce by robbery pursuant to the Hobbs Act. Daniels was indicted on September 11, 2012, and pleaded guilty on November 27, 2012.
In his plea agreement, Daniels admitted that on June 14, 2012, he and another man, who was carrying a firearm, entered the Discount Tobacco and Groceries store in Fridley. Both men then forced the store clerk to open the cash register. Daniels stole money from the cash register before both robbers fled the store. Daniels was later apprehended.
The Hobbs Act, passed by Congress in 1946, provides for 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 U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anoka County Police Department. It was prosecuted by Assistant U.S. Attorney Richard A. Newberry.Two Claremont Men Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges two men from the southeastern Minnesota community of Claremont with conspiring to distribute more than 500 grams of methamphetamine. The indictment, which was filed on May 6, 2013, charges Clancy Shane Amy, age 38, and Michael Steven Schoenfelder, age 33, with one count of conspiracy to distribute methamphetamine. In addition, Amy was charged with three counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of using and carrying a firearm during and in relation to a drug-trafficking crime. The indictment was unsealed following the defendants’ initial appearance in federal court.
The indictment alleges that from at least August 2012 through March 2013, the defendants conspired with others to distribute more than 500 grams of methamphetamine. It also alleges that Amy distributed approximately one ounce of methamphetamine on January 16, January 24, and again on March 15, 2013. In addition, on April 18, 2013, Amy allegedly possessed with intent to distribute approximately four ounces of methamphetamine while in possession of a 12-gauge shotgun; a nine-millimeter, semi-automatic pistol; and a .22-caliber, semi-automatic handgun.If convicted, the defendants face a potential maximum penalty of life in prison on the conspiracy charge. In addition, Amy faces a potential maximum penalty of 20 years on each distribution count, ten years on the possession count, and a consecutive term of five years to life on the firearm count. Any sentence, of course, would be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration, the 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.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Burnsville Woman Convicted of Mailing Letters Intended to Extort MoneyRead the Press Release
MINNEAPOLIS—Late yesterday afternoon, a federal-court jury found a 49-year-old Burnsville woman guilty of mailing threatening letters and letters meant to extort money. The jury convicted Deborah Mae Carlson of 12 counts of mailing threatening communications. Carlson was indicted on November 22, 2011.
The evidence presented at trial proved that on eight separate occasions, Carlson sent threatening letters to an individual. The letters were mailed on March 1, March 11, April 5, April 13, April 20, April 27, May 3, and May 24, 2010. All contained threats to injure that individual. She also sent a threatening letter to a second person. Moreover, Carlson mailed letters to various businesses in the first individual’s name.
Those letters, which demanded money, were sent to the store manager of the Eagan Target store on April 14, 2010; the store manager of the Valley Buick Pontiac GMC dealership in Apple Valley on April 15, 2010; and the Scott Lake Veterinary Center in Prior Lake on April 17, 2010.
For her crimes, Carlson faces a potential maximum penalty of 10 years in federal prison on each threat count and a total of 24 years on the three extortion counts. United States District Court Judge John R. Tunheim will determine her sentence at a future hearing, yet to be scheduled.
This case resulted from an investigation conducted by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension’s Forensic Science Laboratory, and the police departments of Lakeville, Apple Valley, Savage, Shakopee, and Eagan. The case was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.St. Paul Career Criminal Sentenced for Possessing A Sawed-off ShotgunRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 31-year-old career criminal from St. Paul was sentenced for possessing a 20-gauge sawed-off shotgun. On May 7, 2013, United States District Court Judge Susan Richard Nelson sentenced Michael Allen Smith to 180 months in prison on one count of being a career criminal in possession of a firearm and one count of possession of an unregistered firearm. Smith was indicted on July 17, 2012, and was convicted on December 14, 2012.
The evidence presented at Smith’s three-day trial proved that on April 28, 2012, he possessed an unregistered 20-gauge shotgun with a barrel length of less than 18 inches. Because he is a felon, Smith is prohibited under federal law from possessing firearms at any time. He was previously convicted of assault in the fourth degree in Washington County in both 2005 and 2006 and murder in the third degree in Ramsey County in 2001.
Since Smith’s prior offenses constitute crimes of violence, sentencing in the current federal case was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes. Because the federal criminal justice system does not have parole, Smith will serve virtually the entire sentence imposed in this case behind bars.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department. It was prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.Red Lake Man Indicted for Distributing, Possessing Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment recently unsealed charges a 52-year-old Red Lake man with distributing and possessing images and videos containing child pornography. The indictment, which was filed on May 7, 2013, charges James Patrick Needham with one count of distribution of child pornography and one count of possession of child pornography. The indictment was unsealed prior to Needham’s initial appearance in federal court earlier today in Duluth.
The indictment alleges that on July 21, 2011, Needham possessed images and videos containing visual depictions of minors engaged in sexually explicit conduct. It also alleges that on August 4, 2010, Needham distributed several images of similar material. More than 1,300 images and 100 videos were found on a computer that was seized during the execution of a search warrant at Needham’s residence on July 21, 2011.
If convicted, Needham faces a potential maximum penalty of 20 years in federal prison for distribution of child pornography, with a mandatory minimum penalty of five years, and ten years in prison for possession of child pornography. Any sentences would be determined by a federal district court judge.This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, with cooperation from the Red Lake Tribal Police Department. It is being prosecuted by Assistant United States Attorney Laura M. Provinzino.
Distribution and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Red Lake Man Indicted for Assaulting Another with A MacheteRead the Press Release
MINNEAPOLIS—Recently in federal court in St. Paul, a 19-year-old Red Lake man was indicted for assaulting another with a machete while in Redby, a community on the Red Lake Indian Reservation. On May 6, 2013, Dale Clinton White, Jr., was specifically charged with one count of assault resulting in serious bodily harm.
According to a law enforcement affidavit filed in the case, police responded to a reported assault at a Redby residence at 4:00 p.m. on March 22, 2013. There, officers found a man in bed, unconscious, with extensive injuries to his head and arms. Documents on file with the court indicate that witnesses also reported that other people had been in the house prior to the arrival of police. Allegedly, the police then spotted one of those people, later identified as White, as he fled from a neighbor’s house, where he had left behind a machete. The victim suffered several fractures, multiple lacerations, soft tissue damage and hemorrhagic shock.
If convicted, White faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by the 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.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases regarding foreign 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, U.S. District Court Judge Richard H. Kyle sentenced Milton Gonzalez, age 35, to 36 months in prison. Gonzalez was indicted on June 18, 2012, and pleaded guilty on July 24, 2012. In his plea agreement, Gonzalez admitted that on May 7, 2012, he was found in the U.S. after having been deported to Mexico in 2005, following a Wisconsin conviction for possession with intent to distribute amphetamine.
Most recently, Gonzalez was stopped for speeding by Prairie Island, Minnesota, tribal police and arrested on active warrants for possession and sale of counterfeit checks. He was in the Dakota County jail when he was identified as an illegal alien with a criminal record. That identification was made though the ICE’s Criminal Alien Program (“CAP”). The goal 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 illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.
This case was the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw and Special Assistant U.S. Attorney Colin P. Johnson.
In the second case, on May 7, 2013, Noe Castro-Coj, age 41, pleaded guilty before U.S. District Court Chief Judge Michael J. Davis. He was indicted on March 11, 2013. In his plea agreement, Castro-Coj admitted that on February 5, 2013, he was found in the U.S. after having been deported to Guatemala in 2003, following a 2000 Kansas conviction for kidnapping. On February 5, 2013, Castro-Coj was arrested in Steele County for violating an order for protection. On February 7, 2013, ICE was notified that he was in jail.
For his crime, Castro-Coj faces a potential maximum penalty of 20 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 Steele County Sheriff’s Office and ICE ERO. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.
In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense. Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Bloomington Felon Indicted for Possessing Three FirearmsRead the Press Release
MINNEAPOLIS—Recently in federal court in St. Paul, a 26-year-old felon from Bloomington was indicted for possessing firearms on two occasions. On May 6, 2013, William Daniel Sewell was charged with three counts of being a felon in possession of a firearm.
The indictment alleges that on October 12, 2012, Sewell possessed a nine-millimeter, semi-automatic pistol and a .40-caliber pistol. Police stopped Sewell’s vehicle on a traffic violation, and saw the .40-caliber pistol on the floor by the driver’s side seat. Then, when they searched the vehicle, they found the nine-millimeter pistol in the glove compartment. In addition, the indictment states that on March 29, 2013, Sewell again possessed a nine-millimeter, semi-automatic pistol. Because he is a felon, Sewell is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions include second-degree burglary in Anoka County (2010) and fleeing a police officer in Hennepin County (2010).
According to a law enforcement affidavit filed in the case, police responded to a reported fight inside a Minneapolis restaurant on March 29, 2013. At the scene, officers also checked out a nearby parking lot, where a group of men had gathered. As they approached the group, one of the men, later identified as Sewell, started to walk away. When police ordered him to stop, the man began to run, crossing traffic on Lyndale Avenue South. Officers pursued him and saw the pistol fall from his person onto the street.
If convicted, Sewell faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.
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 almost two dozen serious habitual criminals through Project Exile Minneapolis.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.