District of Minnesota
Press releases recorded for this federal judicial district.
Minneapolis Man Pleads Guilty to Robbing Little Canada BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 42-year-old Minneapolis man pleaded guilty to the December 20, 2011, robbery of the US Bank in Little Canada. Reginald Haney pleaded guilty to one count of bank robbery. Haney, who was indicted on February 14, 2012, entered his plea before United States District Court Judge Richard H. Kyle.
In his plea agreement, Haney admitted he stole approximately $2,333 from the bank. During the robbery, he admittedly handed a teller a note that stated she should give him “everything in the top drawer.” After receiving the money, he then exited the building.
According to a law enforcement affidavit filed in the case, witnesses saw Haney leave the scene in a red truck. The truck’s license plate was recorded by surveillance video. Officers found the truck in the parking lot of a Maplewood apartment complex later that day. At approximately 6:30 p.m., officers then observed Haney and a woman drive off in that same truck. Police attempted to conduct a traffic stop, but the truck sped away. Shortly thereafter, the truck stopped, the female passenger got out, and the truck sped off again.
Following a 6.5-mile pursuit by police, the truck stopped in another Maplewood parking lot. Haney exited the vehicle and briefly fled on foot before being apprehended. At the time of his arrest, authorities found $1,079.13 in the front pocket of Haney’s pants. During the execution of a search warrant at the Maplewood apartment where Haney’s female companion lived, officers seized clothing that matched what had been worn by the robber.
For his crime, Haney faces a potential maximum penalty of 20 years in prison. Judge Kyle will determine his sentence at a future hearing. This case is the result of an investigation by the Federal Bureau of Investigation and the police departments of Little Canada and Maplewood. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Criminal Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 34-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. Eduardo Asuncion Gallardo-Gutierrez was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on April 10, 2013, Gallardo-Gutierrez, also known as Carlos Meza, was found in the U.S. after having been deported to Mexico in 2004, following a 1998 Iowa conviction for burglary in the third degree. On April 10, 2013, ICE-Homeland Security Investigation officers encountered Gallardo-Gutierrez while they were executing search warrants in Rochester on another matter.
If convicted of the federal charges now levied against him, Gallardo-Gutierrez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by ICE’s Enforcement and Removal Operations. 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.
Serial Bank Robber Pleads Guilty to Multiple HoldupsRead the Press Release
MINNEAPOLIS— Earlier today in federal court in St. Paul, a 49-year-old Minneapolis man, previously dubbed by law enforcement as “the man-in-black bank robber,” pleaded guilty to five bank robberies that occurred in Minnesota between March 9, 2011, and January 3, 2012. In entering his plea, Mark Edward Wetsch also admitted responsibility for 25 additional bank robberies that occurred in 2011. Previously, on April 22, 2013, he pleaded guilty to one count of armed bank robbery, which occurred on January 3, 2012, in Brewster, Minnesota. He entered his plea today before United States District Court Judge Susan Richard Nelson.
Pursuant to a plea agreement, Wetsch pled guilty to robbing five banks, in each case admitting that he wore a black mask and brandished a firearm believed to be real. Wetsch stole $9,350 from the First National Bank in Hastings on December 27, 2011; $3,634 from the Wells Federal Bank in St. Peter on December 22, 2011; $3,801 from the Premier Bank in Albertville on November 9, 2011; $9,445 from the Merchants Bank in Hampton on May 13, 2011; and $3,050 from the United Educators Credit Union in Eden Prairie on April 26, 2011. In addition to the 6 bank robberies for which Wetsch pled guilty, Wetsch admitted taking a total of more than $110,000 in the 31 bank robberies that he committed in 2011.Those additional robberies include—
December 29, 2011 Glenwood State Bank of Alexandria $3,200 stolen
December 20, 2011 Franklin Bank of Minneapolis 2,350 stolen
December 14, 2011 M&I Bank of St. Paul 1,645 stolen
December 7, 2011 Premier Bank of Bloomington 850 stolen
December 5, 2011 US Bank of Hopkins 3,106 stolen
November 30, 2011 Central Bank of Minneapolis 803 stolen
November 22, 2011 Bremer Bank of Minneapolis 2,907 stolen
November 13, 2011 TCF Bank of Arden Hills 4,900 stolen
November 9, 2011 Richfield Bloomington Credit Union attempted robbery
November 4, 2011 First National Bank of Lakes, Richfield 8,823 stolen
November 1, 2011 Paragon Bank of Shakopee 1,444 stolen
October 22, 2011 Prior Lake State Bank, Prior Lake 7,200 stolen
June 13, 2011 First National Bank of Minnesota of
Gaylord 6,946 stolen
June 3, 2011 Sherburne State Bank, Clear Lake 3,000 stolen
April 26, 2011 Wells Fargo Bank, Faribault 2,225 stolen
April 26, 2011 Richfield Bloomington Credit Union attempted robbery
April 14, 2011 US Federal Credit Union of Northfield 5,280 stolen
April 11, 2011 Sterling State Bank of Savage 1,885 stolen
March 9, 2011 Klein Bank of Cologne 11,400 stolen
March 7, 2011 Bremer Bank of Minneapolis 2,030 stolen
February 17, 2011 First National Bank of Orono 4,000 stolen
February 10, 2011 United Educators Credit Union of
Columbia Heights 1,500 stolen
February 9, 2011 US Bank of St. Paul 1,000 stolen
February 4, 2011 Central Bank of Minneapolis 1,056 stolen
January 11, 2011 Bremer Bank of Minneapolis 6,000 stolen
Wetsch remains in custody. Pursuant to the plea agreement, the government is seeking a prison sentence of 14 years. Since the federal criminal justice system does not have parole, defendants serve virtually their entire sentence behind bars. Judge Nelson will determine Wetsch’s actual sentence at a future hearing, not yet scheduled.This case is the result of an investigation by the Federal Bureau of Investigation and the police departments of Alexandria, Bloomington, Columbia Heights, Eden Prairie, Faribault, Gaylord, Hastings, Hopkins, Minneapolis, Northfield, Orono, Prior Lake, Richfield, Savage, St. Paul, St. Peter, and Shakopee; the sheriff offices of Carver, Dakota, Hennepin, Ramsey, Nicollet, Nobles, Sibley, and Wright counties, with assistance from the Minnesota State Patrol. The case is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Kevin S. Ueland.
North Oaks Couple Sentenced for Health-Care FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Minneapolis, a North Oaks couple was sentenced for committing health-care fraud, specifically making false statements to garner, county, state, and federal benefits and assistance for their disabled children. James N. Hood, age 69, was sentenced to 42 months in federal prison and ordered to pay a $200,000 fine on one count of mail fraud, one count of health care fraud, and one count of theft of public money. His wife, Cynthia Marsalis Hood, age 55, was ordered to serve three years of probation and pay a $300,000 fine on one count of mail fraud and one count of making a false statement for use in determining rights to Social Security benefits. The couple was also ordered to pay restitution in the total amount of $483,312.82 to the agencies victimized by this crime. The Hoods were charged on October 1, 2012, and pleaded guilty on October 24, 2012.
In sentencing the couple, U.S. District Court Judge Joan N. Ericksen reiterated that this was not a victimless crime. She said these programs were meant for people in financial need, and because of the wrongdoing of the Hoods and other fraudsters, these programs could become at risk. She also said that the couple clearly knew right from wrong and took this action for their own personal gain.Following today’s sentencing, Daniel Seymour, Resident Agent in Charge of the Social Security Administration-Office of Inspector General’s (“SSA-OIG”) St. Paul Office, said, “SSA-OIG worked with federal, state, and local law enforcement partners to bring the investigation of James and Cynthia Hood to a successful conclusion. That investigation revealed that the Hoods, despite owning more than $10 million in investments, property and more, stole more than $80,000 in Supplemental Security Income (“SSI”) payments from the federal government. SSI provides a base-level, safety net income for uninsured aged, blind, or disabled individuals with very limited income or resources. The successful prosecution of this case demonstrates what can be accomplished when law enforcement partners work together to combat fraud, waste, and abuse of taxpayer dollars. SSA-OIG is gratified to see this case brought to justice, and is committed to continuing to protect SSA programs from fraud.”
The court documents on file in this case provide that during a five-year period, from January 2006 to April 2011, the couple stole approximately $400,000 in state and federal Medicaid money in addition to the $80,000 in Social Security benefits noted above. To that end, James Hood prepared false federal income tax returns that Cynthia Hood joined him in signing. Those returns were the basis of subsequent benefit applications. In addition, the couple offered false information in the benefit applications themselves, during related in-person interviews, and through income-update forms.
“Our publicly funded programs are meant to serve those in need and every dollar stolen is a dollar taken from a struggling family. Today’s sentencings send a clear message that fraud, waste, and abuse of public funds is not a victimless crime and will not be tolerated in Minnesota,” said Minnesota Department of Human Services Inspector General Jerry Kerber. “Today’s sentencings are the result of an on-going collaborative effort between federal, state, and county governments to fight fraud and abuse in health care and together we will continue to enforce the integrity of public programs.”
Following Hurricane Katrina in 2005, the Hood family, residents of New Orleans at the time, visited several states and eventually decided that Minnesota provided a high quality of life and the best health care and educational resources for their disabled children. After they moved to Minnesota, they applied for a variety of aid on behalf of those children, including, but not limited to federal Social Security supplemental income benefits, State Medical Assistance, Cost-Effective Health Insurance, and Community Alternatives for Disabled Individuals. They also obtained medical insurance assistance from Louisiana.
Eligibility for many benefit programs is based on the applicant’s disabilities and, for children, the parents’ income and resources as well as their financial contributions. To receive Social Security Supplemental Security Income benefits, for example, a single applicant cannot own more than $2,000 in income and assets, excluding a house and vehicle. To secure benefits for themselves, the Hoods falsified government documents and lied to government officials.Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health and Human Services-Office of Inspector General for the region that includes Minnesota, said of the case, “The Hoods seem to have forgotten that Medicaid exists for the country’s most needy citizens, not to enrich those who have achieved financial security. We will continue to work with our federal, state, and local law enforcement partners to ensure that these health care dollars are protected, and criminals who would defraud taxpayers are held accountable.”
During all times relevant to this case, James Hood was the sole heir to family estates and held substantial stock in AT&T, General Electric, and Exxon Mobil, among other companies. His dividend income totaled as much as $156,000 in a given year. He also maintained more than 65 bank accounts, which netted up to $183,000 in interest income annually. Moreover, he owned Iowa farmland and received farm-related payments from the U.S. Department of Agriculture’s Farm Service Agency as well as the State of Iowa. In 2005, the farm yielded Hood income of $187,910.98, but no farm-related values or incomes were reported in his benefit applications or income updates. Likewise, he failed to disclose significant financial gifts received from family trusts. During much of this time, James Hood also served as a professor at Tulane University.
Yet, in 2005, the couple applied for Medical Assistance and, in their application, listed only James Hood’s teaching salary and a small amount of dividend income. Moreover, when they applied for health insurance assistance, they failed to disclose that they were simultaneously seeking and receiving insurance assistance from the State of Louisiana.
In addition, Cynthia Hood repeatedly made false statements to the SSA in support of her children’s continued eligibility for Social Security Supplemental Security Income. Specifically, in 2006, she stated that her husband lived in Louisiana. She falsely reported that she did not own any homes, vehicles, stocks, bonds, or property. And she reported that she only had one bank account with a balance of $1,400. In fact, at the time, Cynthia Hood held at least 16 bank accounts jointly with James Hood. Later, she reported to the SSA that her Minnesota household only consisted of herself and her three children, claiming her husband lived in Iowa. In truth, her husband was living with her and financially supported the household.
In 2007, the couple submitted a renewal application with the Minnesota Health Care Program, which stated that James Hood was on unpaid leave from Tulane. In that document, the only income indicated was the children’s Social Security disability benefits. Similar statements were also made thereafter.
Ramsey County Attorney John Choi said, “I am grateful for the hard work that my staff put into investigating and confirming the facts of this case prior to handing it onto the U.S. Attorney’s Office. We take fraud very seriously and are especially thankful for the cooperative working relationship with the (Minnesota) Department of Human Services in this investigation.”
This case was the result of an investigation by the SSA-OIG, the U.S. Department of Health and Human Services’ Office of Inspector General, the Minnesota Department of Human Services’ Office of Inspector General, and the Ramsey County Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.Bank Teller Charged with Embezzling Money from BankRead the Press Release
MINNEAPOLIS—Last week in federal court, a 64-year-old woman from the southeastern Minnesota community of Wykoff was charged with embezzling approximately $35,520 from the Security State Bank where she was employed as the head teller. On May 3, 2013, Cheryl Lynn Holzer was charged with one count of bank embezzlement.
Allegedly, between December 2010 and February 2012, Holzer took bundles of cash from the bank’s vault for her personal use. She worked at the bank, located in Wykoff.
If convicted, Holzer faces a potential maximum penalty of 30 years in prison. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Texas Man Sentenced for Operating Phony Invoice SchemeRead the Press Release
MINNEAPOLIS-- Earlier today in federal court, a 43-year-old Texas man was sentenced in connection with the operation of a phony invoice scheme that defrauded an Eagan-based company out of more than $600,000. United States District Court Judge Patrick J. Schiltz sentenced Clayton Craig Hogeland, of Aurora, Texas, to 200 months in prison on five counts of mail fraud, two counts of conspiracy to commit mail fraud, two counts of conspiracy to commit money laundering, and three counts of tax evasion. Hogeland was indicted, along with two others, on March 17, 2010, and was convicted on December 6, 2011.
Judge Schiltz also found that Hogeland had obstructed justice by faking a life-threatening medical condition, which caused multiple delays to both his trial and sentencing hearing. Hogeland cited this condition in a motion seeking a reduction in his sentence. Judge Schiltz concluded that Hogeland faked this illness by ingesting high levels of potassium, and found that Hogeland’s conduct justified a substantial upward variance in his sentence. Judge Schiltz said that Hogeland’s actions reflected “an unfathomable dishonesty and audacious selfishness.”
The evidence presented at trial proved that from January 2003 through April 2005, Hogeland conspired with others, including Jeffrey Cole Bennett, to defraud Advantage Transportation, a freight transportation logistics provider headquartered in Eagan. Advantage contracts with customers who have freight to be transported as well as with trucking companies willing to move that freight. Hogeland was Advantage’s general manager, and in May of 2003, he hired his friend Bennett to be the sales manager for the company’s Tennessee office, where he remained employed through September of 2006. Bennett was also charged in the fraud case.Following today’s sentencing, Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation’s St. Paul Field Office, said, “The IRS enforces the nation’s tax and money laundering laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. Today’s sentencing of Mr. Hogeland shows how seriously the courts take federal tax and money laundering crimes.”
Craig I. Goldberg, Acting Postal Inspector in Charge of the Denver Division, which also covers the Twin Cities, added, “Postal inspectors will continue to protect the integrity of the U.S. Postal Service and aggressively investigate those cases where the U.S. mails are used to defraud individuals or businesses of money and property.”
To perpetrate the fraud, Bennett submitted false invoices to Advantage for nonexistent goods and services from four shell companies he formed: Air Catering Solutions and Marketing, Inc. (ACS Marketing), American Logistics Advisors, LTL Development.com, and Transportation Marketing Concepts. Bennett formed three of those companies for the sole purpose of conducting the fraud scheme. Payment of the invoices was then approved by Hogeland, who also caused checks to be issued to the shell companies, knowing the invoices were fraudulent. Between January of 2003 and April of 2005, those payments totaled more than $390,000.
Bennett kept approximately $250,000 of that money for himself, while paying out about $140,000 in kickbacks to Clayton Hogeland. To conceal those kickbacks, Bennett made the payments via checks issued to Clayton Hogeland’s wife, Jennifer Hogeland, who endorsed and deposited the checks into the couple’s joint bank account. In addition, Clayton Hogeland and Bennett routed the proceeds of the phony invoice scheme through Bennett’s shell companies, knowing the transfers were designed to conceal the fact that the money was obtained by fraud.
While employed by Advantage, Clayton Hogeland also orchestrated a second scheme to run false “commission” payments through fictitious companies formed by two other co-conspirators. That scam occurred after Advantage began providing freight transportation services to an airline company in 2003. Carl Frey, one of the co-conspirators, was employed by the airline and was responsible for arranging contracts with over-the-road shipping companies. At the direction of Hogeland, Frey formed a company, Flite Time, which Hogeland falsely characterized as a consultant, to be paid commissions from Advantage for freight assigned by the airline.
As a result, between 2003 and 2005, Frey was paid more than $90,000 in false “commissions” from Advantage, and Clayton Hogeland received $22,000 of that money in the form of kickbacks. All but two of the kickback payments were made by checks issued to Jennifer Hogeland, who deposited the funds into the couple’s joint bank account. The remaining two checks were issued in Clayton Hogeland’s own name.In 2005, Hogeland and Frey became concerned that Frey’s name was being associated with
Flite Time. Therefore, Hogeland recruited a second co-conspirator, William Gregory Braswell, to form a company that would replace Flite Time. That company, Air Cargo Consultants, began receiving the commission payments in 2005. Between 2005 and 2006, more than $180,000 in false commissions were paid by Advantage to Air Cargo Consultants. Out of those funds, Clayton Hogeland and Frey received $30,000 each. Again, payments were made by checks issued to Jennifer Hogeland.
In addition, Clayton and Jennifer Hogeland failed to report to the Internal Revenue Service or pay taxes on the money obtained through the two fraud schemes during tax years 2003 through 2005. However, after learning that the IRS was conducting a criminal tax investigation, the Hogelands sought to cover up their willful tax evasion by filing amended tax returns for tax years 2003 and 2004.
For his part, Bennett also failed to report or pay to the Internal Revenue Service (“IRS”) taxes on the money he obtained through the fraud scheme during tax years 2004 and 2005. After learning that the IRS was conducting a criminal tax investigation, he, like the Hogelands, sought to cover up his willful tax evasion by filing amended tax returns that included the fraud income.
On November 13, 2012, Bennett was sentenced to 95 months in federal prison for his role in the scheme. In February 2012, Braswell and Frey were sentenced, each to three years of probation. On January 10, 2013, Jennifer Hogeland was sentenced to 15 months in prison on three counts of conspiracy to commit tax evasion.
This case was the result of an investigation by the U.S. Postal Inspection Service and the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Tim Rank and Julie E. Allyn.
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, investigates and prosecutes significant financial crimes, ensures just and effective punishment for those who perpetrate financial crimes, combats discrimination in the lending and financial markets, and recovers proceeds for victims of financial crimes.Oakdale Man Sentenced in Connection to $7 Million Mortgage Fraud ScamRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 33-year-old Oakdale man was sentenced for his role in a mortgage fraud scheme that caused losses to lenders exceeding $7 million. On May 2, 2013, United States District Court Judge David S. Doty sentenced Bryan Joseph Lenton to three years of probation on one count of conspiracy to commit mortgage fraud through interstate wire. Lenton was indicted, along with two others, on December 7, 2010, and pleaded guilty on March 8, 2011. He cooperated with authorities in the prosecution of his co-defendant, John Anthony Spencer, and in the investigation and cooperation of James Hoffman, another mortgage fraud defendant currently serving a 78-month sentence.
In his plea agreement, Lenton, a real estate appraiser, admitted he provided appraisals for properties that falsely inflated market values in order to create a pool of funds to be split among him, his co-defendants, and straw buyers.
The scam, orchestrated by Spencer, involved brokering fraudulent loans that were used by recruited purchasers to buy residential real estate at inflated prices. The transactions generated proceeds that greatly exceeded what the sellers were content to accept as full payment for their properties. The excess money was split up among the buyers Spencer recruited as well as Spencer himself and accomplices he solicited in an effort to bring the transactions to fruition.
The properties included six single-family homes in north Minneapolis, five residential
condominium units located on Fisk Avenue in St. Paul, four condo units located on Dayton
Avenue in St. Paul, a home in Albertville, Minnesota, and two investment properties located in
north Minneapolis.
Spencer, a mortgage broker at Minnesota One Mortgage, agreed to assist the owner of a
five-plex condominium unit on Fisk Street in St. Paul to sell those units. To that end, Spencer
recruited Lenton to appraise each of the units at substantially more than the owner of the units
was willing to accept as full payment for them. Spencer then recruited straw buyers to purchase
the units with loan proceeds obtained via fraudulent loan applications prepared by Spencer and
Patrick Arthur Dols, another mortgage broker.
On October 31, 2011, Spencer, age 33, of Albertville, was sentenced to 125 months in prison
on one count of conspiracy, ten counts of wire fraud, one count of bank fraud, and one count of
money laundering. He was convicted on June 2, 2011, after a three-week jury trial.
On November 29, 2012, Dols, age 40, of Minneapolis, was sentenced to one year and one
day in prison on one count of conspiracy. He pleaded guilty on March 1, 2011. In his plea
agreement, Dols admitted that his role in the conspiracy was to take fraudulently drafted loan
applications in the names of various straw buyers and find lenders willing to make mortgage
loans based on the false information he was providing.
This case was the result of an investigation by the Internal Revenue Service-Criminal
Investigation. It was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
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.Man Pleads Guilty to Habitual Domestic AssaultRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 48-year-old man pleaded guilty to being a habitual offender who committed domestic assault against a woman on the Bois Forte Indian Reservation. On April 30, 2013, Mark Allen Isham specifically pleaded guilty to one count of domestic assault by an habitual offender. Isham, who was indicted on December 3, 2012, entered his plea before United States District Court Judge David S. Doty. This is the third time the U.S. Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by an habitual offender” statute.
In his plea agreement, Isham admitted that on August 22, 2012, he struck the victim and threw her to the ground, causing bodily injury. The assault followed at least two prior convictions in Bois Forte Tribal Court for similar crimes. They occurred in 2004, 2008, and 2010.
The federal law that governs domestic assault by a habitual offender was enacted by Congress in 2006 in support of the Violence Against Women Act of 2000. The 2006 statute is a valuable tool for federal prosecutors because research shows that many domestic violence offenders are repeat offenders.This statute is of particular importance in Indian Country because domestic violence rates are far greater there than in the country at large. In 2005, Congress reported that one in three American Indian women is raped during her lifetime. American Indian women are also nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” for prosecution involving domestic violence, sexual assault, and stalking.
For his crimes, Isham faces a potential maximum penalty of five years in federal prison. Judge Doty will determine his sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Bois Forte Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Bois Forte Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Bois Forte Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Cold Spring Man Sentenced for Possessing Methamphetamine and Being an Illegal Alien with A FirearmRead the Press Release
MINNEAPOLIS—Yesterday in federal court in Duluth, a 37-year-old Cold Spring man was sentenced for possessing methamphetamine with the intent to distribute it and for being an illegal alien in possession of a firearm. On April 30, 2013, United States District Court Chief Judge Michael J. Davis sentenced Tomas Hermosillo Marquez to 120 months in federal prison on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm by an illegal alien. Marquez was indicted on October 15, 2012, and pleaded guilty on December 13, 2012.
In his plea agreement, Marquez acknowledged that on September 21, 2012, police officers found several packages of methamphetamine, totaling approximately 900 grams, in his trailer house in Cold Spring, Minnesota. The discovery was made while the officers were executing an early morning state search warrant. The police also found a .22-caliber revolver, ammunition, a digital scale, packaging materials, and $4,615 in cash. In addition, the police recovered MSM and inositol, common cutting agents for methamphetamine. Marquez subsequently acknowledged that he had intended to distribute the methamphetamine to another person; that he possessed the gun in connection to his drug trafficking activities; and that he was an illegal alien.This case was the result of an investigation by the Central Minnesota Violent Offender Task Force and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst. To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/concern/meth.html.
Ponemah Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
MINNEAPOLIS—Yesterday in federal court in Duluth, a 46-year-old man from the Red Lake Indian Reservation community of Ponemah pleaded guilty in connection with the August 19, 2012, death of Kaishauna Thunder. On April 29, 2013, Gordon Dean Johnson pleaded guilty to one count of involuntary manslaughter. Johnson, who was indicted on January 8, 2013, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, Johnson admitted that during the early morning of August 19, 2012, he killed Thunder without malice. Specifically, Johnson was operating a motor vehicle in a reckless manner, while under the influence of alcohol, when he struck Thunder, who was walking alongside State Highway 1.
For his crime, Johnson faces a potential maximum penalty of eight years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the 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.
Federal Inmate Charged for EscapingRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was charged with one count of escape from custody. Gerald James Greenfield, age 67, of Bloomington, was apprehended following six days on the run.
On March 30, 2013, Greenfield reportedly escaped from the Federal Prison Camp in Duluth. He was serving a 50-month sentence following a 2012 conviction in the District of Minnesota for conspiracy to commit money laundering. According to a law enforcement affidavit filed in the current case, Greenfield 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. that evening. On April 5, 2013, law enforcement officials apprehended him at a hotel in Burnsville.
If convicted, Greenfield faces a potential maximum penalty of five years in prison, which could be added to his current sentence. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Faribault Man Sentenced for Bank FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 39-year-old Faribault man was sentenced for fraudulently writing 127 company checks to himself. United States District Court Judge David S. Doty sentenced Ronald Leo Schaeffer to 33 months in federal prison on one count of bank fraud in connection to the crime. Schaeffer was charged on December 6, 2012, and pleaded guilty on January 16, 2013.
In his plea agreement, Schaeffer admitted that from August of 2008 through April of 2012, he stole approximately $432,504.10 from his employer, Environmental Tillage Systems, Inc. (“ETS”). ETS, an agricultural manufacturing company in Faribault, hired Schaeffer as its sole in-house accountant. Among other duties, he was responsible for using the QuickBooks accounting software to record information regarding payments owed by ETS to vendors and employees.
Schaeffer admittedly wrote approximately 127 fraudulent checks against the ETS checking account, in amounts ranging from approximately $400 to $12,000, for deposit into his personal account. To conceal his actions, he then made false entries in ETS’s QuickBooks accounting records, indicating that the checks were issued to legitimate ETS vendors when that was not the case.For a period of time, Schaeffer had the authority to use a signature stamp to validate company checks. Beginning in November of 2010, however, he was directed to obtain the actual signature of ETS’s CEO or CFO on all checks before disbursing them. From that point on, he forged the signature of the CEO or CFO on any check that he wrote to himself. Schaeffer used the money he stole from the company to build a lake home in Elysian, Minnesota, and to make payments on his auto and home-equity loans.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Benjamin F. Langner.North Dakota Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a 41-year old Wahpeton, North Dakota, man pleaded guilty to distributing child pornography. William Robert Upshaw pleaded guilty to one count of distribution of child pornography. Upshaw, who was indicted on December 3, 2012, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, Upshaw admitted that on August 19, 2011, he distributed one or more items that contained visual depictions of minors engaged in sexually explicit conduct. In addition, Upshaw admitted that his possessed approximately 75,775 images and 1,880 videos of child pornography, some of which portrayed sadistic or masochistic conduct or other depictions of violence.
For his crime, Upshaw faces a potential maximum penalty of 40 years in federal prison, with a mandatory minimum penalty of 15 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 Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, and the Moorhead Police Department. It is being prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Distribution 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.”Red Lake Man Indicted for Running Another Vehicle Off the RoadRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 30-year-old Red Lake man for running a vehicle driven by a woman off the road while on the Red Lake Indian Reservation. The indictment, which was filed on April 22, 2013, charges Tony Lee Lussier with one count of assault with a dangerous weapon. The indictment was unsealed following Lussier’s initial appearance in federal court.
The indictment alleges that on May 12, 2012, Lussier assaulted the woman with intent to do bodily harm, with a motor vehicle. The woman was driving a Pontiac Bonneville, which was allegedly forced off the road by Lussier who was driving a gray van.
If convicted, Lussier faces a potential maximum penalty of ten years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Laura M. Provinzino.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.
Redby Felon Sentenced for Possessing A 12-gauge ShotgunRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 27-year-old Redby man was sentenced for possessing a 12-gauge, sawed-off shotgun. On April 24, 2013, United States District Court Judge John R. Tunheim sentenced Timothy Clarence Stately to 84 months in prison on one count of being a felon in possession of a firearm. Stately was indicted on April 3, 2012, and pleaded guilty on August 23, 2012.
In the plea agreement, Stately admitted that between May 29 and 31, 2011, he possessed a 12-gauge, sawed-off shotgun with an obliterated serial number. At a minimum, he had possession of the gun during the late evening of May 30, 2011, through the early morning of May 31, 2011. During that time, he admittedly participated in numerous felony offenses, including shooting into two occupied dwellings, shooting at another residence as well as a retail establishment, and burglarizing and setting fire to a trailer home. Because he is a felon, Stately is prohibited under federal law from possessing firearms or ammunition at any time. He was previously convicted of second-degree assault with a dangerous weapon.
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.Minneapolis Felon Indicted for Possessing A Nine-millimeter Pistol as Well as HeroinRead the Press Release
MINNEAPOLIS—Recently in federal court, a 59-year-old Minneapolis felon was indicted for possessing a nine-millimeter pistol as well as heroin. On April 22, 2013, Robert Lee Powers was specifically charged with one count of being a felon in possession of a firearm and one count of possession with intent to distribute heroin. Earlier today, Powers had his initial appearance in federal court.
The indictment alleges that on March 18, 2013, Powers possessed the pistol as well as a detectable amount of heroin. Because he is a felon, he is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Hennepin County for third-degree sale of crack cocaine (1989), offering a forged check (1992), fourth-degree sale of crack cocaine (1992), attempted first-degree criminal sexual conduct (1992), a third-degree controlled substance crime (2000), an attempted fifth-degree controlled substance crime (2004 and 2005), a fifth-degree controlled substance crime (2008 and 2009), and theft of a motor vehicle (2009). In addition, Powers was convicted in Washington County for conspiracy to commit a controlled substance crime (1996) and being a predatory offender providing false information (2005).Because at least three of these convictions constituted violent crimes or major drug crimes, Powers is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted under federal law for being a felon in possession of a firearm or ammunition. In addition, Powers faces a potential maximum penalty of 20 years in federal prison for possession with intent to distribute heroin. Any sentences will 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.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Minneapolis Felon Indicted for Possessing A .38-caliber RevolverRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 28-year-old Minneapolis felon with possessing a .38-caliber revolver. The indictment, which was filed on April 22, 2013, charges Paul McCurry with one count of being a felon in possession of a firearm. The indictment was unsealed following McCurry’s initial appearance in federal court.
The indictment alleges that on March 26, 2013, McCurry possessed the handgun. Because he is a felon, McCurry is prohibited under federal law from possessing a firearm at any time. McCurry was previously convicted in Hennepin County for aggravated robbery (2005), fleeing police in a motor vehicle (2005), and domestic assault by strangulation (2008). Because those convictions constituted crimes of violence, McCurry is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.
This case is the result of an investigation by the Minneapolis Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Jury Finds Minneapolis Felon and Known Drug User Guilty of Possessing A .40-caliber PistolRead the Press Release
MINNEAPOLIS— Yesterday in federal court, a jury found a 36-year-old felon guilty of possessing a .40-caliber, semi-automatic pistol. Following a three-day trial, a jury convicted Demario Kentrell Booker, of Minneapolis, of one count of illegally possessing a firearm after being previously convicted of a felony and while being an unlawful user of and addicted to a controlled substance.
The evidence presented at trial proved that on November 20, 2012, Booker, an admitted drug addict, possessed the pistol. A law enforcement affidavit filed in the case indicated that at approximately 2:06 a.m. on that day, officers noted that a vehicle, later found to be driven by Booker, had failed to signal a turn and had crossed the center line. Booker, however, refused to pull over and, instead, led the police on a high-speed chase. The police recovered the gun from inside the vehicle.
Because he is a felon, Booker, also known as Gary White, is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Hennepin County include assault in the third degree (2004), assault in the fourth degree (2008), and being a prohibited person in possession of a firearm (2009).For his crimes, Booker faces a potential maximum penalty of ten years in federal prison. United States District Court Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney 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.Federal Inmate Pleads Guilty to Obtaining $23,000 in Social Security Benefits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, pleaded guilty to stealing more than $23,000 in Social Security benefits. Nefertiti Randall specifically pleaded guilty to one count of theft of government money or property. Randall, who was indicted on January 22, 2013, entered her plea before United States District Court Judge John R. Tunheim.
In her plea agreement, Randall admitted that from June 12, 2009, through April 2012, she stole $23,012 from the Social Security Administration (“SSA”). The funds, which were automatically deposited into a bank account accessible to both Randall and her mother, represented benefits intended solely for Randall’s mother. Her mother died in June of 2009, and in August of 2009, Randall began serving an unrelated, multi-year, identity-theft sentence at the Federal Correctional facility in Waseca. According to the indictment, Randall nonetheless continued to access her mother’s social security benefits until spring of 2012.
For her crime, Randall faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the SSA-Office of Inspector General, with cooperation from the U.S. Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Duluth Felon Indicted for Possessing Two FirearmsRead the Press Release
MINNEAPOLIS—Recently in federal court, a 36-year-old Duluth felon was indicted for possessing a nine-millimeter pistol and a .357-caliber revolver. On April 22, 2013, Ronald Paris Riles was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on February 6, 2013, Riles possessed the two firearms. Because he is a felon, Riles is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Illinois for first-degree murder (1993) as well as manufacturing and delivering cannabis (2007).
If convicted of the federal charge now levied against him, Riles faces a potential maximum penalty of ten years in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Duluth Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Two St. Paul Men Indicted for Possessing with Intent to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Recently in federal court, two St. Paul men were indicted for possessing with intent to distribute more than 500 grams of methamphetamine. On April 22, 2013, Antonio Ceron-Santos, age 40, and Avimael Armenta-Hernandez, age 27, were charged with one count of possession with intent to distribute methamphetamine.
The indictment alleges that on March 28, 2013, the defendants possessed the methamphetamine. According to a law enforcement affidavit filed in the case, the defendants were arrested that day, following an arranged controlled purchase of approximately one pound of methamphetamine at a parking lot in Maplewood. During the execution of a state search warrant at the defendants’ residence, police allegedly seized an additional five pounds of methamphetamine as well as drug ledgers and a scale typically used to weigh illegal narcotics.
If convicted, the defendants face a potential maximum penalty of life in federal prison. Because the federal criminal justice system does not have parole, offenders serve virtually their entire prison sentences behind bars. Any sentences imposed in this case 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 St. Paul Police Department, the Minneapolis-St. Paul Airport Police Department, the Minnesota State Patrol, and the county sheriff’s offices for Dakota, Ramsey, Washington and Wright counties. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.
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 Inmate Indicted for Escaping from PrisonRead the Press Release
MINNEAPOLIS—Recently in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was indicted after being apprehended following six days on the run. On April 22, 2013, Michael Joseph Krzyzaniak, age 64, of Minneapolis, was indicted on one count of escape from custody.
The indictment alleges that on March 30, 2013, and continuing through April 5, 2013, Krzyzaniak was an escapee from the Federal Prison Camp in Duluth. 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. On April 5, law enforcement officials apprehended him at a hotel in Burnsville.
If convicted, Krzyzaniak faces a potential maximum penalty of five years in federal prison, which may be tacked onto the sentences he is already serving. All sentences would be determined by a federal district court judge.This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
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.
April 21-27 Is Crime Victims’ Rights WeekRead the Press Release
MINNEAPOLIS—U.S. Attorney B. Todd Jones today announced that this week is National Crime Victims’ Rights Week. The theme of this year’s observance, “New Challenges, New Solutions,” honors local champions of crime victims’ rights and celebrates the spirit that will advance the progress these heroes have to date achieved.
Awareness of federal crime victims and the issues they face was greatly heightened in 2004, with the enactment of the Crime Victims’ Right Act (“CVRA”). That act grants federal crime victims certain enforceable rights during criminal proceedings, including the right to be heard in court and the right to receive full and timely restitution as provided by law. Crime victims also have the right to be notified of pertinent court events, such as indictment, trial, and sentencing. In Fiscal Year 2010, U.S. Attorney offices nationwide collectively notified federal crime victims of nearly eight million case events. In the District of Minnesota alone, approximately 212,099 such notices were provided.
The U.S. Attorney’s Office in the District of Minnesota has a dedicated Victim-Witness team. In addition to ensuring compliance with victims’ rights, as set forth in federal statute, team members accompany crime victims to court, make referrals for counseling, and assist in accessing victim compensation funds. Nationally, in Fiscal Year 2010, an estimated 19,000 federal crime victims were accompanied to court and more than 23,000 were referred for victim services.
Another way in which U.S. Attorney offices assist federal crime victims is by recovering the monetary losses incurred by them during the related crime. This is particularly important in cases involving financial fraud, when victims often lose their retirement funds or their children’s college money to a smooth-talking crook. Of course, the government cannot guarantee all losses will be restored, but in Fiscal Year 2011, U.S. Attorney offices nationwide, through their Financial Litigation Units, collected a total of approximately $53 in federal restitution for crime victims. In Fiscal Year 2011, the U.S. Attorney’s Office in the District of Minnesota collected approximately $15.4 million for individual victims, while more than $161,000 was recovered for federal agencies who had been victimized by criminal activity.
Finally, the federal government assists victims of violent crime by paying for related expenses, such as lost wages, counseling, and medical costs. Moreover, that assistance is not provided by tax dollars. Rather, the funds come from the Federal Crime Victims Fund, which is supported through the collection of criminal fines and penalties.
For more information about National Crime Victims’ Rights Week, visit http://ovc.ncjrs.gov/ncvrw/.Shakopee Man Charged with Fraudulently Using Food StampsRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 47-year-old Shakopee man was charged via an Information with fraudulently using other people’s food stamps. On April 18, 2013, Chin Son Kim was specifically charged with one count of food stamp fraud.
The charging document provided that between November 2010 and July 2012, Kim obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the recipients of those benefits. To that end, Kim waited near a charity facility in St. Paul, as well as at other locations, approaching people from whom he might acquire the SNAP cards.
After garnering a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, Kim 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 is estimated to be $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 United States Department of Agriculture (“USDA”) then 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. Moreover, food stamps may not be redeemed for cash.
If convicted, Kim faces a potential maximum penalty of five years in federal prison. All sentences will be determined by a federal district court judge. 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.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Federal Inmate Sentenced for Assaulting Another InmateRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 46-year-old woman was sentenced for assaulting another inmate at the Federal Correctional Institute in Waseca, Minnesota. United States District Court Chief Judge Michael J. Davis sentenced Felecia Thomas to 41 months in federal prison on one count of assault with a dangerous weapon. Thomas was indicted on May 15, 2012, and pleaded guilty on January 11, 2013, by offering a “straight plea” and did not enter into a plea agreement.
On June 10, 2011, Thomas, who was then serving time at the correctional facility in Waseca following a 2004 conviction for arson and the use of explosives in the commission of a felony, assaulted an inmate by strangling her with a rope. The rope allegedly had been removed from a laundry bag.
This case was the result of an investigation by the Federal Bureau of Investigation and the U.S. Bureau of Prisons. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.Crystal Man Charged with Possessing Child PornographyRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 59-year-old Crystal man was charged with possessing approximately 8,000 images of child pornography. On April 17, 2013, James Richard Darling was charged via an Information with one count of possession of child pornography.
On September 22, 2009, Darling allegedly possessed numerous visual depictions of minors engaged in sexually explicit conduct on his computer.
If convicted, Darling faces a potential maximum penalty of 20 years in federal prison, with a mandatory minimum penalty of ten years. Any sentence 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. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.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.”
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Rochester Woman Indicted for Defrauding Elderly Couple Out of $840,000Read the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 61-year-old Rochester woman with defrauding an elderly couple out of more than $840,000. The indictment, which was filed on April 15, 2013, specifically charges Carolyn Jean Cassar with one count of wire fraud. The indictment was unsealed following Cassar’s initial appearance in federal court.
The indictment alleges that from May 2006 through September 2012, Cassar executed a scheme to obtain money through false and fraudulent pretenses. Cassar allegedly induced an elderly couple to provide her with money by falsely representing that she needed the funds to travel to Washington, D.C., to attend to the affairs of her recently deceased daughter. She also falsely represented that she needed money to travel to Italy to, among other things, prosecute a former business agent who had defrauded her. She told the couple she expected to receive money she inherited from her father, which the business agent had stolen, and she would then repay them the funds they loaned to her. To support her false representations, Cassar allegedly provided the victims with airline itineraries for her flights to Italy.Instead, the indictment alleges that Cassar used the victims’ money to (1) vacation in Europe with her son and others; (2) take design professionals to Italy to study its architecture in preparation for designing a home for her; and (3) pay an architect to draw plans for a villa-style house.
If convicted, Cassar faces a potential maximum penalty of 20 years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation, and the Rochester Police Department. It is being prosecuted by Assistant United States Attorney Kimberly A. Svendsen.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Jury Finds Brooklyn Park Man Guilty of Role in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 41-year-old Brooklyn Park man guilty of participating in a large, multi-state, identity theft ring. Following an eight-day trial, the jury convicted Gordon Lamarr Moore of one count of conspiracy to commit bank fraud and two counts of aggravated identity theft. Moore, who fled during trial, was indicted along with four others on November 14, 2012. He remains a fugitive. If you have any information regarding Moore’s whereabouts, contact the United States Marshals Service at (612) 664-5900 or [email protected].
According to the evidence presented at trial, members of the conspiracy obtained the personal information of other people through mail theft, vehicle break-ins, and burglaries, as well as from co-conspirators who stole the information from their places of employment. That information was then used to create false identification documents, such as driver’s licenses and identification cards, along with counterfeit checks. Co-conspirators used the counterfeit checks and fraudulent identification to purchase expensive items and gift cards at retail stores. They later returned the items for cash, which was divided among those involved in the criminal activity. Co-conspirators also deposited counterfeit checks into the bank accounts of unknowing individuals, only to withdraw the funds from those same accounts a short time later. To avoid detection, co-conspirators only accessed each bank account a few times before moving on to another.
Earlier this month, two co-defendants, Shanell Collette Brewer and Samantha Catrina House, pleaded guilty to participating in the scheme. In February 2013, two others, Jerome Davis, Jr., and Jemall Ronta Williams, also pleaded guilty to the same crime.
The newly convicted defendants face a maximum potential penalty of 30 years in federal prison for conspiracy to commit bank fraud and a mandatory minimum consecutive penalty of two years in prison on each count of identity theft. U.S. District Court Judge Paul A. Magnuson will determine their actual sentences at a future hearing, not yet scheduled.
In a related case, following a jury trial in September 2012, four other men were convicted of crimes connected to this same identity theft ring. They now await sentencing. Twenty-four additional co-conspirators have entered guilty pleas for their participation in the ring. They too await sentencing.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They are being prosecuted by Assistant U.S. Attorneys Karen B. Schommer and Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.
Federal Jury Convicts Man for Conspiring to Distribute HeroinRead the Press Release
MINNEAPOLIS—Late yesterday in federal court, a jury found a 29-year-old man guilty of conspiring to distribute approximately 450 grams of heroin. The jury convicted Jose Nunez-Medina, a Mexican national, of one count of conspiracy to distribute heroin and one count of possession with intent to distribute heroin. He was indicted, along with Sarahi Diaz-Estrada, age 23, also a Mexican national, on September 11, 2012.
Trial evidence proved that in August 2012, Nunez-Medina conspired with others to distribute 100 or more grams of heroin. It also proved that on August 11, 2012, Nunez-Medina possessed with intent to distribute 100 or more grams of heroin.
On April 8, 2013, co-defendant Diaz-Estrada pleaded guilty to one count of possession with intent to distribute heroin. In her plea agreement, Diaz-Estrada admitted that in exchange for money, she agreed to drive Nunez-Medina from Indiana to Michigan for the purpose of distributing heroin. But instead, they drove to Minnesota. Diaz-Estrada also admitted that she possessed with intent to distribute 450 grams of heroin.
A law enforcement affidavit filed in the case provided that on August 11, 2012, the Crystal Police Department received information from the Indianapolis Metro Police Department concerning the possible abduction of Diaz-Estrada from her Indiana residence. She was believed to be kept against her will at a Crystal motel. Police proceeded to the motel, determined Diaz-Estrada was there, and knocked on her door.
Both Diaz-Estrada and Nunez-Medina were in the motel room. And after speaking with them, the police obtained and executed a state search warrant for the room as well as for Diaz-Estrada’s Jeep. They found approximately 450 grams of heroin, a scale, balloons, and bags. Both defendants were then arrested on drug-related charges.
For their crimes, the defendants face a potential maximum penalty of 40 years in federal prison on each count. United States District Court Chief Judge Michael J. Davis will determine their sentences at future hearings, yet to be scheduled.
This case was the result of an investigation by the Crystal Police Department and the U.S. Drug Enforcement Administration, with cooperation from the Indianapolis Metro Police Department. It was prosecuted by Assistant U.S. Attorney Richard Newberry.Criminal Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Recently in federal court, a 40-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. On April 15, 2013, Benito Blanco-Correa was charged with one count of illegal re-entry after deportation.
The indictment alleges that on March 13, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Mexico on three occasions, the last being in 2010, following a 2009 conviction in the District of Minnesota for conspiracy to distribute and possession with intent to distribute heroin. On March 13, Blanco-Correa was identified as an illegal alien while in the Hennepin County jail, where he was being held after a narcotics’ arrest.
The identification was made though the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). The goal of CAP 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.If convicted of the federal charges on levied against him, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.
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.
Woman Sentenced for Her Role in Hold-up of Citizens Bank in HutchinsonRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old woman was sentenced for her role in the robbery of the Citizens Bank in Hutchinson, Minnesota. United States District Court Judge David S. Doty sentenced Erica Lea Reeves, no known residence, to 19 months in federal prison on one count of aiding and abetting bank robbery. Reeves was indicted along with a co-defendant on August 22, 2012. She pleaded guilty on November 7, 2012.
In her plea agreement, Reeves admitted that on July 17, 2012, she and her co-defendant stole $5,770 from Citizens Bank, located at 1390 Highway 15 South, in Hutchinson. According to a law enforcement affidavit filed in the case, Reeves’ co-defendant, Eric Andrew Ebbers, age 25, no known address, presented a bank teller with a note demanding money and warning that he had a gun. After taking the money provided, Ebbers ran to a waiting car driven by Reeves. Police tried to stop the vehicle, but the car sped away. With officers in pursuit, the car exceeded 100 mph, wove through traffic, and avoided a police roadblock. When the car was finally disabled, Reeves was arrested, while Ebbers fled on foot into a cornfield. He was apprehended the following day.
On February 14, 2013, Ebbers was sentenced to 71 months in federal prison on one count of aiding and abetting bank robbery. He pleaded guilty on September 27, 2012. In his plea agreement, Ebbers also admitted robbing the Alliance Bank in Lake City, Minnesota, and the Key Bank in Gresham, Oregon. In both instances, Ebbers presented tellers with a note demanding money and warning that he had a gun.
This case was the result of an investigation by the Federal Bureau of Investigation and the McLeod County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.St. Paul Man Sentenced for Role in Large Marijuana Distribution RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 38-year-old St. Paul man was sentenced for his role in a large marijuana distribution ring. United States District Court Judge Patrick J. Schiltz sentenced Cesar Sevilla-Acosta to 135 months in federal prison on one count of conspiracy to distribute marijuana. Sevilla-Acosta and 27 co-defendants were charged on October 18, 2010, in a superseding indictment. He was convicted on November 28, 2012, following a three-day trial. Because the federal judicial system does not have parole, Sevilla-Acosta will spend virtually his entire prison sentence behind bars.
Following today’s sentencing, Dan Moren, Assistant Special Agent in Charge of the U.S. Drug Enforcement Administration’s Minneapolis-St. Paul Field Office, said, “The sentencing of Mr. Sevilla-Acosta brings closure to a significant investigation targeting a Mexican-based criminal organization. The citizens of Minnesota should be proud of the perseverance and determination put forth by the case agents, prosecutors, and law enforcement partners in dismantling this criminal drug organization.”
Trial evidence proved that from 2006 through September 23, 2010, Sevilla-Acosta conspired with others to distribute 1,000 kilograms or more of marijuana throughout Minnesota and Colorado. The drug ring was responsible for the distribution of approximately 25,000 kilograms of marijuana in Minnesota from 2006 to September 2010. The proceeds of those sales totaled millions of dollars.
Judge Schiltz previously sentenced 23 of Sevilla-Acosta’s co-defendants on one count of conspiracy to distribute marijuana:
On June 5, 2012, Sergio Abraham Olivas Padilla, also known as Juan Alonzo-Perez, was sentenced to 60 months in prison on one count of conspiracy to distribute marijuana. He pleaded guilty on September 20, 2011.
On March 5, 2012, Jose Israel Diaz was sentenced to 18 months in prison. He pleaded guilty on May 10, 2011.
On March 2, 2012, Ricardo Diaz was sentenced to 70 months in prison. He pleaded guilty on May 13, 2011.
On December 22, 2011, Stephanie Rachel Raduenz was sentenced to three years of probation. She pleaded guilty on December 20, 2010.
On December 21, 2011, Jorge Luis Medrano was sentenced to 15 months in prison. He pleaded guilty on December 3, 2010.
On December 19, 2011, Jose Cruz Alvarez Jaime, also known as Carlos Munoz-Perez, was sentenced to 75 months in prison and Tyler Louis Kyte was sentenced to 84 months in prison. Jaime pleaded guilty on May 10, 2011, and Kyte pleaded guilty on December 7, 2010.
On December 14, 2011, Michael Asencion Moreno was sentenced to 108 months in prison. He pleaded guilty on January 11, 2011.
On November 29, 2011, Federico Llamas, III, was sentenced to 78 months in prison. He pleaded guilty on December 16, 2010.
On November 1, 2011, Gustavo Moreno was sentenced to 18 months in prison. He pleaded guilty on May 13, 2011.
On October 28, 2011, Jorge Luis Villar-Meras was also sentenced to 18 months in prison. He pleaded guilty on May 4, 2012.
On October 5, 2011, Yolanda Jean Moreno was sentenced to 12 months and 1 day in prison. She pleaded guilty on November 22, 2010.
On September 27, 2011, Francisco Javier Carreon-Garcia was sentenced to 121 months in prison. He pleaded guilty on January 13, 2011.On August 30, 2011, Greg Bryan Ortega was sentenced to 24 months in prison. He pleaded guilty on December 13, 2010.
On August 29, 2011, Sabrina Jean Lafountaine was sentenced to three years of probation and Alan Lee Lorentz was sentenced to six months in prison. Lafountaine and Lorentz pleaded guilty on December 6, 2010.
On August 11, 2011, Alonso Rascon-Olivas was sentenced to 68 months in prison. He pleaded guilty on November 29, 2010.
On August 5, 2011, Joel Auren Zellmann was sentenced to three years of probation. He pleaded guilty on November 12, 2010.
On July 28, 2011, Bruce John Johnson was sentenced to 43 months in prison. He pleaded guilty on November 17, 2010.
On July 26, 2011, Amy Marie Mayberry was sentenced to 12 months in prison. She pleaded guilty on December 20, 2010.
On July 8, 2011, Stefanie Donna Kalenberg was sentenced to 10 months in prison. She also pleaded guilty on December 20, 2010.
On June 30, 2011, Charles Joseph Kalenberg was sentenced also sentenced to 10 months in prison. He pleaded guilty on November 8, 2010.
On June 23, 2011, Alfonso Prado-Galvon was sentenced to 37 months in prison. He pleaded guilty on December 21, 2010.
In addition, Judge Schiltz sentenced Sevilla-Acosta’s four remaining co-defendants on one count of possession with intent to distribute marijuana:
On July 27, 2011, Jose Luis Renterra was sentenced to 37 months in prison on one count of possession with intent to distribute marijuana on September 22, 2010. He pleaded guilty on January 13, 2011.
On June 10, 2011, Rogelio E. Obeso-Melchor was sentenced to 30 months in prison on one count of possession with intent to distribute on April 20, 2010. He pleaded guilty on December 21, 2010.
On May 19, 2011, William Robert Laurie was sentenced to 27 months in prison on one count of possession with intent to distribute on August 19, 2009. He pleaded guilty on November 16, 2010.
On April 29, 2011, Patrick Thomas Maykoski was sentenced to 60 months in prison on one count of possession with intent to distribute on February 24, 2010. Maykoski pleaded guilty on October 29, 2010.This sentencing culminates a significant investigation, dubbed Operation Weed Whacker. This case was the result of an Organized Crime Drug Enforcement Task Force investigation led by the DEA’s Minneapolis—St. Paul District Office, in cooperation with other state and federal law enforcement agencies, including the Bloomington Police Department, the McLeod County Sheriff’s Office, the Sibley County Sheriff’s Office, the Carver County Sheriff’s Office, the Hutchinson Police Department, and the Glencoe Police Department, with assistance provided by the South West Metro Drug Task Force, the DEA’s Denver Office, the Denver Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Dakota County Drug Task Force, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
Federal Jury Finds Red Lake Man Guilty of Assaulting A WomanRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a jury found a 44-year-old Red Lake man guilty of causing serious bodily injury to a woman after assaulting her while on the Red Lake Indian Reservation. Following a two-day trial, the jury convicted Roderick Arlyn Sayers on one count of assault resulting in serious bodily injury. Sayers was indicted on November 5, 2012.
According to both the evidence presented at trial and the indictment, on November 25, 2011, Sayers assaulted the victim, which resulted in serious bodily injury. The victim, who was Sayers’ girlfriend, had a significant mouth injury and a loose tooth.
For his crime, Sayers faces a potential maximum penalty of ten years in federal prison. United States District Court Judge Richard H. Kyle will determine his sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Thomas Calhoun-Lopez.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 will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered in during their lives than Caucasian women.Federal Jury Convicts Inmate for Retaliating Against Her for Being A Government WitnessRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a jury found a 23-year-old inmate guilty of retaliating against another inmate for being a government witness in a drug-trafficking trial. Following a four-day trial, the jury convicted Veronique Zsa zsa Antique Muckle, of Superior, Wisconsin, on one count of federal witness retaliation. Muckle was indicted on September 11, 2012.
According to the indictment and evidence presented at trial, Muckle assaulted Angelique Michelle Vos on August 14, 2012, following Vos’ return to the Sherburne County Jail after serving as a cooperating government witness during a narcotics trial. Muckle, Vos, and more than three dozen others pleaded guilty for their roles in a large-scale drug-trafficking organization that transported prescription pills and heroin from Detroit to the Twin Ports region in Minnesota. In September 2011, the organization was brought down after it was investigated by the Lake Superior Drug and Violent Crime Task Force and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). The investigation itself was commonly referred to as Operation Highlife.In August 2012, Muckle’s business partner and confidante Lawrence Lalonde Colton chose to go to trial. At the time, Muckle and Vos were held separately in the Sherburne County Jail. Muckle was already sentenced to 52 months in prison for her participation in the original drug conspiracy, and was awaiting placement in the federal prison system. Along with several other co-conspirators, Vos testified on behalf of the federal government in Colton’s drug-trafficking trial on August 14, 2012. When Vos returned from federal court, Muckle ran from a segregated area of the facility and violently attacked Vos. Colton was convicted on August 16, 2012, and later sentenced to 300 months in prison. At trial, Muckle took the stand and claimed the assault was because of a separate dispute between herself and Vos.
For her crime, Muckle faces a potential maximum penalty of 30 years in prison. United States District Court Judge David S. Doty will determine her sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Sherburne County Sheriff’s Office, the Lake Superior Drug and Violent Crime Task Force, the Duluth Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Allen A. Slaughter and Amber M. Brennan.As Tax Day Approaches, U.S. Attorney’s Office Pledges Pursuit of Tax OffendersRead the Press Release
MINNEAPOLIS—As Tax Day approaches, the U.S. Attorney’s Office reminds all Minnesotans that the deadline for filing federal income tax returns is Monday, April 15. To exemplify federal law enforcement’s commitment to pursue those who fail to pay their taxes or otherwise defraud the tax system, the Office noted that federal prosecutors in the District of Minnesota this week charged four individuals with tax-related crimes in three separate cases:
On April 9, 2013, Roger Martin Pedley was indicted for evading taxes for tax years 2000-2009, and for knowingly structuring his financial transactions to evade federal reporting requirements. Pedley was charged with four counts of tax evasion, six counts of structuring cash transactions, and two counts of making false statements to a federal agent.
If convicted, Pedley 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 the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney John Docherty.
In another case, charged on April 9, 2013, the former owner of Life Care PCA, a Farmington-based home health care company, was indicted for failing to pay federal income and employment taxes withheld from workers. The indictment charges Daniel Nok Musa with 14 counts of failure to account for and pay over withheld taxes. The indictment was unsealed following Musa’s initial appearance in federal court.
The indictment alleges that beginning in 2002, and for every quarter from at least January 1, 2005, through October 31, 2009, Musa failed to timely pay over to the IRS a total of approximately $180,000 in withheld employee taxes as well as the employer’s share of FICA taxes. From August 1, 2006, through November 1, 2009, Musa was the sole owner and president of Life Care.
If convicted, Musa 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 the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Michael L. Cheever.
In another indictment unsealed earlier this week, two executives of a Minnesota-based multi-level marketing company were charged for failing to file federal tax returns. The indictment, which was filed on April 9, 2013, charges Bradley Collin with one count of conspiracy to defraud the U.S. and three counts of failure to file a tax return. Michael Schlegel was charged with one count of conspiracy, three counts of tax evasion, and three counts of failure to file tax returns. The indictment was unsealed following the defendants’ initial appearance in federal court.
The indictment alleges that from 2002 through 2010, the defendants conspired with each other and others to defraud the U.S. by obstructing the IRS in its lawful collection of income taxes. To that end, Schlegel and Collin allegedly failed to make any payments toward the back taxes, interest and penalties levied against them in 2000, which totaled more than $600,000 and $800,000 respectively. The defendants also purportedly failed to file federal individual tax returns for tax years 2002-2009, pursuing “tax protestor” ideologies.
The indictment states that from 2002 to 2009, Schlegel controlled NatureRich, Inc., a multi-level marketing company that sold natural and health-related products. Like similar companies, NatureRich paid commissions to salespeople based on direct sales and on the sales of downstream salespeople. At various times between 2002 and 2009, Schlegel and Collin reportedly received wages and commission payments from NatureRich that totaled more than $400,000. Schlegel also purportedly caused NatureRich to pay his commissions to a nominee trust called the “Andrew James Living Trust,” from which he then paid his family’s expenses. During that time, Schlegel also operated a painting business, allegedly receiving more than $400,000 in income from painting contracts.In 2004, the defendants, through the use of nominee entities, allegedly began engaging the “warehouse” banking services of Olympic Business Systems and Century Business Concepts. “Warehouse” banking refers to the use of one or more bank accounts in which the funds of multiple clients are deposited, thereby concealing the true source of the funds.
The indictment alleges that the defendants also filed misleading federal corporate tax returns in the name of NatureRich in an effort to conceal the true extent of their personal interest in and the income derived from NatureRich. In all, the defendants allegedly attempted to conceal at least $3 million in gross income from the IRS, thereby avoiding income taxes on that income and also avoiding having those funds seized for payment of their previous tax debts.
If convicted, the defendants face a potential maximum penalty of five years in prison on the conspiracy count, and one year on each count of failure to file a tax return. In addition, Schlegel faces a potential maximum penalty of five years on each tax evasion count. All sentences will 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. Attorneys Tracy L. Perzel and Benjamin F. Langner.The District of Minnesota has been active in other tax cases. On April 9, 2013, in St. Paul, a Twin Cities-based attorney doing business as Sea Law Office, PLC, was sentenced for failing to report and pay taxes on more than $420,000 in income for tax years 2006 through 2010. United States District Court Judge Richard H. Kyle sentenced Bobby Gordon Okechuku Onyemeh Sea to eight months in prison on one count of filing a false U.S. Individual Income Tax Return. Sea was charged on November 2, 2012, and pleaded guilty on November 26, 2012.
From 2006 through 2012, Sea earned gross receipts for legal services, and in his plea agreement, he admitted failing to report those receipts on his tax returns. He also admittedly used the unreported income for his personal benefit. In addition, Sea admitted that on April 15, 2008, he filed a false 2007 tax return. Specifically, he reported a taxable income of $9,087, and refundable credits of $3,529, thus understating his taxable income by approximately $100,000 and claiming refundable credits that were not earned.
Sea also admitted filing false tax returns for tax years 2006, 2008, 2009, and 2010. As a result, he is admittedly responsible for a total tax loss of at least $80,000 but less than $200,000.
This case was the result of an investigation by the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Timothy C. Rank and Ann M. Anaya.The District’s efforts to pursue tax dodgers were also enhanced last fall thanks to a U.S. Justice Department directive. In September 2012, the Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorney offices in effectively responding to the grave challenges in stolen identity refund fraud (“SIRF”) cases. Tax Division Directive 144 now allows federal prosecutors to charge by complaint those criminals who are engaged in SIRF crimes. They may also obtain search warrants for the purpose of forfeiture of criminally derived proceeds arising from SIRF crimes, all without prior authorization from the Tax Division. To ensure fair and consistent nationwide enforcement of tax laws, the Tax Division has supervision over virtually all criminal proceedings arising under tax laws. Tax refund fraud, involving the use of stolen identities to steal refunds, has emerged as a fast-growing crime. Strong coordination at all levels of law enforcement is vital to combat these criminals.
The District of Minnesota is prosecuting several SIRF cases. Last month, three individuals pleaded guilty to participating in a conspiracy to file false tax returns to generate inflated refunds. Two of the defendants were licensed tax preparers. In November 2012, two defendants pleaded guilty to participating in a conspiracy to file false tax returns and claim tax refunds using stolen personal information.
For more information about the Tax Division and its enforcement efforts, visit www.justice.gov/tax. The Minnesota U.S. Attorney’s Office wants to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. 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.
Man Indicted for Producing Child PornographyRead the Press Release
MINNEAPOLIS—Recently in federal court, a 26-year-old man, formerly of St. Paul, was indicted for producing, distributing and possessing child pornography. On April 9, 2013, Douglas Luke Robinette was charged with four counts of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography.
The indictment alleges that on three occasions in 2010, Robinette induced a 14-year-old boy to engage in sexually explicit conduct for the purpose of producing visual depictions of that activity on his cell phone. It also alleges that between July 1 and August 30, 2010, Robinette enticed that same victim to engage in similar conduct for the purpose of producing a video of that activity. In addition, the indictment alleges that on July 12 and July 18, 2010, Robinette distributed child pornography via a computer and on August 30, 2010, possessed child pornography on his computer.
If convicted, Robinette faces a potential maximum penalty of life in prison on each production count, 40 years on each distribution count, and 20 years on the possession count. All sentences would be determined by a federal district court judge.This case is the result of an investigation by the Rice County Sheriff’s Office, the Minnesota Bureau of Apprehension, and the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.
Production, 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.
Coon Rapids Man Pleads Guilty to Stealing Prosthetics from the U of M and Selling Them OnlineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 52-year-old Coon Rapids man pleaded guilty to stealing prosthetics and related supplies from the University of Minnesota Medical Center—Fairview and selling them online. Specifically, Peter Stasica pleaded guilty to one count of wire fraud. Stasica, who was charged on March 8, 2013, entered his plea before United States District Court Judge Ann D. Montgomery.
In his plea agreement, Stasica admitted that from February to August 2011, while he was the prosthetics manager for Fairview’s Orthotics and Prosthetics Department, he began removing prosthetics and prosthetic-related supplies without authorization to sell on eBay. In his capacity as prosthetics manager, Stasica’s duties included purchasing supplies and equipment, working with vendors, and advising patients about whether a new prosthetic limb was necessary.
In addition, Stasica admitted he solicited from several patients, under false pretenses, prosthetics they were not using. Stasica did not disclose to those patients that he intended to sell them. During the course of the scheme, approximately 40 buyers purchased more than 60 prosthetics and related supplies from Stasica via eBay. The items had an actual cost to Fairview of approximately $122,928. The eBay sales resulted in a profit of approximately $17,296.
For his crime, Stasica faces a potential maximum penalty of 20 years in 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 Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.Ten Indicted in Connection with Illegal Poaching of Walleye on Leech Lake and Red LakeRead the Press Release
MINNEAPOLIS—Four federal indictments have been filed against a total of ten individuals in connection with illegal poaching and marketing of walleye and other protected fish on the Red Lake and Leech Lake Indian reservations. All ten people were charged with one count of transportation, sale, and purchase of fish taken in violation of the Lacey Act.
The first indictment charges Larry W. Bellefy, age 53, of Bagley; Thomas P. Sumner, age 54, of Red Lake; and Brian W. Holthusen, age 47, also of Red Lake. The second indictment charges Michael D. Brown, age 54, no known address; and Michael J. Nei, age 48, of Bemidji. The third indictment charges Jerry A. Reyes, age 51, of Cass Lake; and Marc L. Lyons, age 61; Frederick W. Tibbetts, age 61; and Alan D. Hemme, age 55, all of Bena. The fourth indictment charges Larry Good, age 58, of Red Lake. All four indictments allege that the defendants knowingly engaged in conduct that involved the sale and purchase of fish with a market value in excess of $350.
The first indictment alleges that between July 2009 and July 2011, Bellefy, Sumner, and Holthusen took fish from Red Lake without the approval of the Red Lake Fisheries Association. The indictment specifically asserts that Sumner and Holthusen obtained the fish and then sold them to Bellefy, who resold them.
The second indictment alleges that between July 2010 and July 2011, Brown and Nei netted fish from Leech Lake for commercial purposes. That indictment specifically states that Brown netted the fish and then sold them to Nei.
The third indictment alleges that between July 2009 and July 2011, Reyes, Lyons, Tibbetts, and Hemme also took fish from several lakes on the Leech Lake Indian Reservation. That indictment specifically claims that Ryes, Lyons and Tibbetts took the fish from the lakes and then sold them to Hemme, who owns a restaurant in Bena.
The fourth indictment alleges that between July 2009 and July 2011, Good took fish from Red Lake without approval of the Red Lake Fisheries Association.
Authorities began investigating these black-market activities in July 2009. During the course of that investigation, officers conducted numerous controlled purchases of illegally obtained fish. They also seized fish during the execution of several search warrants. Authorities estimate the fair market value of the fish illegally obtained through the activity covered by these four indictments to be in the hundreds of thousands of dollars.
If convicted, the defendants face a potential maximum penalty of five years in federal prison on each count. And because the federal justice system does not have parole, a convicted offender will spend virtually his entire sentence behind bars. Any sentence, however, would be determined by a federal district court judge.
These cases are the result of investigations by the U.S. Fish and Wildlife Service, the Minnesota Department of Natural Resources, the Leech Lake Division of Resource Management, and the Red Lake Department of Natural Resources. They are being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Man Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 48-year-old Guatemalan national was indicted for entering the United States illegally after being deported as a criminal. Hector Raul Estrada-Garcia was charged with one count of illegal re-entry after deportation.
The indictment alleges that on March 7, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Guatemala in 2000, following a 1997 conviction in the District of Minnesota for distribution of methamphetamine. On March 7 of this year, Estrada-Garcia was identified in Anoka County as an illegal alien with a criminal record by the U.S. Immigration and Customs Enforcement’s (“ICE”) St. Paul Fugitive Operations Team.
If convicted, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Fridley Man Indicted for Transporting Others to Engage in ProstitutionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 27-year-old Fridley man was indicted for transporting another to engage in prostitution, pursuant to federal law. Napoleon Long, Jr., was charged with one count of enticing another for interstate travel to engage in prostitution and one count of transportation with intent to engage in prostitution. Federal law prohibits the interstate transportation of individuals for the purpose of prostitution.
The indictment alleges that in October 2011, Long, also known as Nate, persuaded a woman to travel to Colorado for the purpose of engaging in prostitution.
If convicted, Long faces a potential maximum penalty of 20 years in prison. All sentences would be determined by a federal district court judge. This case is the result of an investigation by the Anoka County Sheriff’s Office and United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/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.
Former Hockey Association Treasurer Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS— Earlier today in federal court in St. Paul, a former Minnesota Amateur Hockey Association, District 2, treasurer was sentenced for evading his personal income taxes in 2010. United States District Court Judge Richard H. Kyle sentenced Steven Brier to eight months in prison on one count of tax evasion. Brier was charged on December 4, 2012, and pleaded guilty on December 17, 2012.
In his plea agreement, Brier admitted from April 2005 through September 2011, he stole at least $384,000 during his time as treasurer for the Minnesota Amateur Hockey Association, District 2. As treasurer, Brier had signature authority for the District 2 bank accounts and only one signature was required on the checks issued by the Association. Brier acknowledges that he wrote unauthorized checks to himself from District 2’s bank account. The treasurer position was not a paid position, so Brier was only supposed to receive money from the Association for reimbursable expenses paid out-of-pocket. To avoid detection and to make the checks look legitimate, Brier wrote “scheduling” and “playoff expense” in the memo line to make it appear that the checks were reimbursements of expenses he paid out-of-pocket.Over the years, Brier tried to pay back the amounts he owed before anyone found out. However, the defendant still owes District 2 much of the money that he stole. Brier tried to gamble at various casinos in an attempt to win back the money he owed to the Association.
During the tax year 2010, Brier evaded his personal income taxes by approximately $74,473. Brier also acknowledges that he attempted to evade his personal income taxes by approximately $240,396 during tax years 2007 through 2010. Brier failed to inform his return preparer of the money he took from District 2. Since Brier calculated his business income and expenses for his return preparer, he did not have to submit his business or personal bank statements, which would have shown the deposits from District 2. Brier agrees that the tax loss resulting from his evasion is at least $68,000 for the tax years 2007 through 2010.
This case was the result of an investigation by the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
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.Federal Jury Convicts St. Paul Felon for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 36-year-old felon guilty of possessing a nine-millimeter pistol. Following a three-day trial, the jury convicted Christopher Sean Daniels, of St. Paul, on one count of being a felon in possession of a firearm. Daniels was indicted on October 1, 2012.
Evidence presented at trial proved that on September 3, 2012, Daniels possessed a Smith & Wesson, nine-millimeter pistol. Because he is a felon, Daniels is prohibited under federal law from possessing a firearm at any time. Daniels was previously convicted in Illinois in 1995 and 1997 for delivery of a controlled substance. In addition, he was convicted in Hennepin County in 2006 for being a felon in possession and for second-degree assault. And in 2010, he was convicted in Anoka County for fourth-degree assault. Since all of those prior offenses were crimes of violence or major drug crimes, Daniels is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. United States District Court Judge Donovan W. Frank will determine his actual sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and John E. Kokkinen.
Eagan Man Pleads Guilty to Defrauding Investors in A Real Estate Investment ProgramRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 52-year-old Eagan man pleaded guilty to participating in a scheme to defraud real estate investors. On April 9, 2013, Tonii Carlos Greene pleaded guilty to one count of transactional money laundering. Greene, who was charged on March 20, 2013, in a superseding indictment, entered his plea before United States District Court Judge Donovan W. Frank.
In his plea agreement, Greene admitted that from early 2007 through at least August of 2008, he devised and participated in a scheme that involved the solicitation of money from investors under false pretenses. In particular, Greene solicited investments in a purported program through which properties were to be bought at a discount, rehabilitated, and either refinanced or sold. Investors were told that their money was a short-term investment loan and would be repaid with profits or interest. Investors were not told that their funds would be used for Greene’s personal use, or that their purported investment returns would be paid from later investor funds. The estimated loss to victims due to Greene’s actions is more than $1 million.
For his crime, Greene faces a potential maximum penalty of ten years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations, and the Minnesota Department of Commerce, with cooperation from the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and William J. Otteson.
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.The task force and the U.S. Attorney’s Office wants to remind people to protect themselves from investment fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.
Man Pleads Guilty to Endangering ChildRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 21-year-old man pleaded guilty to endangering a child while on the Red Lake Indian Reservation. On April 8, 2013, Travis Aaron Rosebear, no known address, pleaded guilty to one count of child endangerment. Rosebear, who was indicted on December 3, 2012, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, Rosebear admitted that sometime between December 31, 2011, and January 3, 2012, he fractured the arm of a 15-month-old girl. Rosebear was the caretaker for the baby and five other children while their parents were periodically away from the residence. Rosebear also admitted carrying the baby by one arm, swinging her down a hallway after becoming frustrated, causing the fracture. In addition, the baby suffered a bruise on the back of her head.
For his crime, Rosebear faces a potential maximum penalty of five years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
Hastings Man Pleads Guilty to Producing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 24-year-old Hastings man pleaded guilty to producing child pornography. Mark Matthew Cortes pleaded guilty to one count of production of child pornography. Cortes, who was indicted on December 3, 2012, entered his plea before United States District Court Judge Ann D. Montgomery.
In his plea agreement, Cortes admitted that in November 2011, he knowingly persuaded a minor under the age of 12 to engage in sexually explicit conduct for the purpose of producing images of such conduct on his cellular telephone. Cortes also admitted that he transferred the images from his phone to his computer, and then distributed them to another person. In addition, Cortes admitted that he committed a sexual act with the victim during the production.
For his crime, Cortes faces a potential maximum penalty of 30 years in 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 Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Production of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Two Rochester Men Plead Guilty to Distributing Crack CocaineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two Rochester men pleaded guilty to distributing more than 280 grams of crack cocaine. Jimmy Joe Barker, age 26, pleaded guilty to one count of conspiracy to distribute cocaine and crack cocaine, while Quentin Graham, age 27, pleaded guilty to one count of distribution of crack cocaine. Both men were indicted on November 5, 2012, and entered their pleas before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Barker admitted that from April 9, 2010, through April 3, 2012, he conspired with Graham and others to distribute approximately 412.9 grams of crack cocaine and 42 grams of powder cocaine. According to a law enforcement affidavit filed in the case, authorities began investigating Barker in April 2010. They conducted several controlled purchases from him, and during many of those purchases, they observed him in a vehicle that later was determined to be owned by Graham.
While executing a search warrant at Barker’s residence on November 9, 2010, police seized $320 in cash, approximately 31.1 grams of crack cocaine, and approximately 42.3 grams of powder cocaine. Police also searched Graham’s vehicle, which was parked in front of Barker’s residence at the time. From that vehicle, they recovered approximately 124 grams of cocaine.
In his plea agreement, Graham admitted that on April 4, 2012, he traveled with Barker to Rochester Community College for the purpose of delivering narcotics to an individual. Graham specifically carried the bag of narcotics into a building and handed it to the individual, who, in turn, provided money to Barker. The bag contained 124.3 grams of crack cocaine.
For his crime, Graham faces a potential maximum penalty of 40 years in federal prison, with a mandatory minimum penalty of five years. Barker faces a potential maximum penalty of life in prison, with a mandatory minimum penalty of ten years. Judge Ericksen will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation by the South East Minnesota Narcotics and Gang Task Force, the U.S. Drug Enforcement Administration, and the Rochester Police Department. It is being prosecuted by Assistant U.S. Attorneys LeeAnn K. Bell and Surya Saxena.Former Payroll Service Provider Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a former payroll service provider was sentenced for failing to pay to the Internal Revenue Service (“IRS”) employment taxes received from his clients. On April 4, 2013, United States District Court Judge John R. Tunheim sentenced Mohamed Abdi to time served (approximately three months) on one count of tax evasion. He also was ordered to pay approximately $77,000 in restitution. Abdi was indicted on April 9, 2012, and pleaded guilty on January 3, 2013.
From January 1, 2005, through June 2007, Abdi was the sole owner of Siham Solutions, Inc., which provided payroll services to clients in Minnesota. These services included paying federal income and employment taxes that were withheld from the employees of Siham’s clients. In his plea agreement, Abdi acknowledged that from the first quarter of 2005 through the second quarter of 2007, he received between $80,000 and $200,000 in employment taxes from his clients, which he, in turn, was to pay to the IRS. Instead, however, Abdi used the money for his own purposes.
This case was the result of an investigation by the IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Michael L. Cheever.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.
Farmington Man and Apple Valley Woman Plead Guilty to Armed Robbery of Northfield HotelRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 27-year-old Farmington man and 29-year-old Apple Valley woman pleaded guilty to the armed robbery of America’s Best Value Inn and Suites in Northfield. On April 2, 2013, Eric Wade Forcier pleaded guilty to two counts of interference with commerce by robbery pursuant to the Hobbs Act; one count of using, carrying, possessing and brandishing a firearm during and in relation to a crime of violence; and one count of being a felon in possession of a firearm. Julie Ann Campana pleaded guilty to one count of aiding and abetting interference with commerce by robbery. Both were indicted on December 3, 2012, and both pleas were entered before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Forcier admitted that on October 29, 2012, he entered the hotel wearing a Halloween mask, pointed a handgun at the night manager, and demanded money from the cash register and the safe. After receiving $114, he ran outside to an awaiting vehicle. Shortly after the car left the scene, police stopped it and arrested Campana, the driver. Forcier fled from police, discharging his handgun, but was arrested later in the day. Officers recovered items from the vehicle as well as along the path that Forcier took in running from the police. Those items included the Halloween mask and a .32-caliber, semi-automatic pistol.Forcier also admitted robbing four other businesses. On October 22, 2012, he stole $1,850 from Eddy’s Bar & Grill in Inver Grove Heights. He admittedly entered the bar, pointed a handgun at several employees, and fired it at the ceiling. On October 15, 2012, he stole $60 from an Apple Valley Domino’s Pizza; on October 18, 2012, he stole $154.41 from a Bloomington SuperAmerica; and on October 19, 2012, he stole $200 from an Apple Valley Jiffy Lube.
Because he is a felon, Forcier is prohibited under federal law from possessing firearms at any time. His prior Dakota County convictions include second-degree drug possession (2008), possession of stolen property (2008), two counts of fifth-degree drug possession (2007), and fleeing police in a motor vehicle (2007).
In her plea agreement, Campana admitted she was the lookout and get-away driver for Forcier on October 29. Campana also admitted that before the robbery, she asked the hotel’s night manager several questions about the hotel’s nighttime operations. In addition, Campana was admittedly Forcier’s get-away driver for the robberies at Eddy’s, SuperAmerica, and Domino’s.
For his crimes, Forcier faces a potential maximum penalty of 20 years in prison on each of the two robbery counts; life in prison for brandishing a firearm; and ten years in prison for being a felon in possession of a firearm. Campana faces a potential maximum penalty of 20 years in prison. Judge Magnuson will determine their sentences at a future hearing, yet to be scheduled.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Dakota County Sheriff’s Office; the Rice County Sheriff’s Office; and the police departments of Apple Valley, Bloomington, Inver Grove Heights and Northfield. It is being prosecuted by Assistant U.S. Attorneys Amber M. Brennan and Allen A. Slaughter.Mendota Heights Man Sentenced for Possessing MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 43-year-old Mendota Heights man was sentenced for possessing with intent to distribute more than 50 grams of high-purity methamphetamine. United States District Court Chief Judge Michael J. Davis sentenced Joseph Benjamin Thomas to 120 months in prison on one count of possession with intent to distribute methamphetamine in violation of federal law. Thomas was indicted on April 16, 2012, and pleaded guilty on July 11, 2012. In his plea agreement, Thomas admitted that between February 1 and April 16, 2012, he possessed with intent to distribute in excess of 50 grams of methamphetamine.
This case was the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the University of Minnesota Police Department; the Minneapolis Police Department; and the St. Paul Police Department, with significant assistance from the Fairmont Police Department and the Minnesota Department of Corrections. It was prosecuted by Assistant U.S. Attorney Andrew R. Winter.St. Paul Felon Sentenced for Possessing A .38-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old St. Paul felon was sentenced for possessing a .38-caliber, semi-automatic pistol. United States District Court Judge David S. Doty sentenced Jose Antonio Caban to 84 months in prison on one count of being a felon in possession of a firearm. Caban was indicted on July 16, 2012, and pleaded guilty on September 18, 2012.
In his plea agreement, Caban admitted that on June 6, 2012, a police officer found him in possession of a firearm at a bar in St. Paul. Because he is a felon, Caban is prohibited under federal law from possessing firearms at any time. He was previously convicted in Ramsey County in 2011 for terroristic threats.
This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Richard A. Newberry.