District of Minnesota
Press releases recorded for this federal judicial district.
Minneapolis Felon Indicted for Possessing A .22-caliber PistolRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late last week charges a 20-year-old Minneapolis man for being a felon in possession of a .22-caliber pistol. Marcus Rashad Davis was charged with one count of being a felon in possession of a firearm. The indictment, which was filed on January 22, 2013, was unsealed following Davis’s initial appearance in federal court on March 28, 2013.
The indictment alleges that on June 15, 2012, Davis possessed the semi-automatic weapon. Because he is a felon, Davis is prohibited under federal law from possessing a firearm at any time. His prior Illinois convictions include manufacture/delivery of a controlled substance (2008), possession with intent to deliver cannabis (2008), and burglary of a vehicle (2011).
In the current federal case, Spencer 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 Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.
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 Employee Indicted for Stealing More Than $10,000 from Postal ServiceRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges a former employee of the United States Postal Service (“USPS”) with embezzling approximately $10,365.57 from the Brooklyn Park Post Office. The indictment, which was filed on March 12, 2013, charges Kathleen M. Warner, age 52, of Otsego, with one count of misappropriation of postal funds. The indictment was unsealed following Warner’s initial appearance in federal court.
The indictment alleges that from approximately February 2010 through August 2012, Warner embezzled funds from her cash drawer and removed stamps and other merchandise without paying for them.
If convicted, Warner 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 USPS-Office of Inspector General. 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.
Three Plead Guilty to False Tax Refund SchemeRead the Press Release
MINNEAPOLIS— As Tax Day approaches, the United States Attorney’s Office reminds people be cautious of suspicious tax preparers. Earlier today in federal court, a Minnesota woman pleaded guilty to being part of a conspiracy to filing false tax returns to generate inflated refunds. Tameca Stokes specifically pleaded guilty to one count of conspiracy to defraud the United States. Stokes, who was indicted along with two co-defendants on January 15, 2013, entered her plea before U.S. District Court Judge Joan N. Ericksen.
Yesterday, co-defendant Soloman Frank-Sawari also pleaded guilty to one count of conspiracy, and on March 19, 2013, co-defendant Chasma Dixon did the same. The trio admittedly obstructed the Internal Revenue Service (“IRS”) and the State of Minnesota in their lawful collection of income taxes by falsifying hundreds of tax returns. All three admitted that the tax loss due to the conspiracy was between $80,000 and $200,000.
In their plea agreements, the three defendants admitted that from 2007 through 2010, they conspired with each other and others to prepare fraudulent tax returns for customers of Frank-Sawari’s tax preparation services, Merit Tax Service of Robbinsdale and Capitol Income Tax of Minneapolis. The returns generated inflated refunds for their customers and fees and other payments for themselves and others. The co-defendants admitted that on the returns, they provided false income and dependent information, among other things. They also instructed their customers to sign false income declarations and other paperwork to substantiate the fraudulent returns.
According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return-Preparer.
For their crimes, the defendants in this case each face a potential maximum penalty of five years in federal prison. Judge Ericksen will determine their sentences at a future hearing, yet to be scheduled. This case was investigated by the IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney William J. Otteson.
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.Garfield Man Sentenced for Constructing A Road Through A Protected Wetland BasinRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Fergus Falls, a 49-year-old man from the central Minnesota community of Garfield was sentenced for constructing a road through land he knew was a federally protected wetland basin. United States Magistrate Judge Leo I. Brisbois sentenced James Bosek to two years of probation on one misdemeanor count of filling a wetland that was subject to a federal easement under the National Wildlife Refuge System Act. In addition, Bosek was ordered to remove the road and complete the restoration as outlined by the U.S. Fish and Wildlife Service (“USFWS”). Bosek was convicted on January 4, 2013, based on evidence presented to Judge Brisbois during a bench trial last August.
Judge Brisbois told Bosek that the restoration of the wetland is the only way to “undo the injury to the public interest.” So, he fined Bosek $2,500, but said if the restoration is completed by March 31, 2014, the fine will be waived.
Following today’s sentencing, Larry Martin, USFWS Fergus Falls Wetland Management District Project Leader, said, “The USFWS purchases wetland easements to protect wetlands from this type of alteration, along with any type of drainage activity, and we are pleased to see the Court upholding our easement and restoration efforts in Minnesota.”Judge Brisbois found that Bosek engaged in prohibited activity when he built a road across the eastern edge of his property, which is located in rural Douglas County. The property is subject to a perpetual easement that the U.S. Department of Interior purchased in 1963. Bosek bought the property subject to the easement in 2001.
Bosek acknowledged during the trial that he knew of the easement before building the road. In finding him guilty, Judge Brisbois found that Bosek failed to obtain permission or authorization from the USFWS to construct the road over the protected wetlands. The USFWS discovered the road while making an unrelated visit to Bosek’s property in April 2008. Judge Brisbois credited the trial testimony of a USFWS biologist, who surveyed the property and concluded that Bosek’s action damaged the wetland as a protected native habitat for waterfowl. Bosek was charged on August 19, 2011, after refusing the USFWS’s request that he remove the road and restore the wetland.
This case was the result of an investigation by the USFWS. It was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu, Thomas Calhoun-Lopez, and William J. Otteson.Felon Indicted for Possessing A .45-caliber HandgunRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier this week charges a 31-year-old felon for possessing a .45-caliber handgun. The indictment, which was filed on March 19, 2013, charges Nathan Anderson, of Bloomington, with one count of being a felon in possession of a firearm. The indictment was unsealed following Anderson’s initial appearance in federal court on March 25, 2013.
The indictment alleges that on March 2, 2013, Anderson possessed the gun. Because he is a felon, Anderson is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include theft (2001), terroristic threats (2001), third-degree burglary (2003), and second-degree assault (2005). Because these convictions constituted crimes of violence, Anderson is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.
This case is the result of an investigation by the Bloomington 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.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 Sentenced for Possessing A .40-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 51-year-old Minneapolis felon was sentenced for possessing a .40-caliber pistol. United States District Court Judge Ann D. Montgomery sentenced Ronnie James Woods to 180 months in federal prison on one count of being a felon in possession of a firearm. Woods was indicted on June 19, 2012, and pleaded guilty on October 15, 2012.
In his plea agreement, Woods admitted that on May 3, 2012, he possessed a .40-caliber, Glock pistol while riding in a vehicle that was stopped by police. He then fled on foot, ultimately dropping the gun. Authorities subsequently apprehended him.
Because he is a felon, Woods is prohibited under federal law from possessing a firearm at any time. His prior convictions include second-degree robbery (Missouri, 1983), armed-criminal action (Missouri, 1983), forcible rape (Missouri, 1983), and kidnapping (Missouri, 1983). Woods also was convicted in Hennepin County, Minnesota, of first-degree burglary (1997) and fifth-degree controlled substances’ crimes (2009). In addition, he was convicted in St. Louis County, Minnesota, on two counts of third-degree controlled substances’ crimes (2002).Since Woods’ prior offenses constitute crimes of violence or serious drug crimes, sentencing in the current federal case was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes. Because the federal criminal justice system does not have parole, a convicted offender will spend virtually his entire prison sentence behind bars.
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 Surya Saxena.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws.
The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.Blooming Prairie Man Indicted for Producing, Distributing Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late Friday charges a 40-year-old Blooming Prairie man with producing, distributing, and possessing child pornography. The indictment, which was filed on March 19, 2013, charges Brian Luke Broulik with one count of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. The indictment was unsealed following Broulik’s initial appearance in federal court.
The indictment alleges that on May 12, 2012, Broulik induced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct on his cell phone. It also alleges that on March 9, 2012, Broulik knowingly distributed similar depictions via a computer, and that on May 24, 2012, Broulik possessed similar depictions and videos.
If convicted, Broulik faces a potential maximum penalty of life in federal prison for production of child pornography, 40 years for distribution, and 20 years for possession. All sentences would be determined by a federal district court judge.This case is the result of an investigation by the Olmsted County Sheriff’s Office, 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 Kevin S. Ueland.
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.
Blackduck Man Indicted for Involuntary ManslaughterRead the Press Release
MINNEAPOLIS—Last week in federal court, a 27-year-old Blackduck man was indicted in connection with the October 23, 2012, death of a young woman in Redby, Minnesota. On March 19, 2013, Dustin Michael Johnson was charged with two counts of involuntary manslaughter.
The indictment alleges that on October 23 Johnson killed the woman without malice. It alleges that Johnson was operating a motor vehicle while under the influence of alcohol on State Highway 15 and crashed. The victim, who was a passenger in the vehicle, was killed.
If convicted, Johnson faces a potential maximum penalty of eight years in prison on each count. 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 Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
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.
Another Street Gang Leader Is Prosecuted in Federal CourtRead the Press Release
MINNEAPOLIS—This afternoon in federal court in St. Paul, the former leader of the “Young and Thuggin’” (“YNT”) street gang was sentenced for distributing crack cocaine. United States District Court Judge Susan Richard Nelson sentenced Trayjohn Lashawn Martin, age 21, of Minneapolis, to 87 months in federal prison on one count of aiding and abetting the distribution of crack cocaine.
Martin was indicted on September 7, 2011, and pleaded guilty on June 14, 2012. Because the federal justice system does not have parole, Martin will spend virtually his entire prison sentence behind bars.
In his plea agreement, Martin admitted that on June 13, 2011, he provided a confidential informant with approximately 24.7 grams of crack cocaine during a controlled purchase in north Minneapolis. Several days earlier, law enforcement officers had contacted Martin via telephone to set up the buy. It ultimately took place in the 2500 block of Fourth Street North.
Martin also admitted to the court that he conspired with others to possess with intent to distribute as well as to distribute at least 28 grams but less than 112 grams of crack cocaine.The YNT gang has been connected to a string of violence in North Minneapolis, which has included the trafficking of both narcotics and firearms.
This sentence comes on the heels of last week’s federal-court conviction of several members of the Native Mob street gang on charges ranging from racketeering to attempted murder.
This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case was prosecuted by Assistant U.S. Attorney Steven L. Schleicher.St. Paul Felon Indicted for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier this week in federal court, a 23-year-old felon from St. Paul was indicted for possessing a nine-millimeter, semi-automatic pistol. On March 19, 2013, Virgil Lee Kirkwood was charged with one count of being a felon in possession of a firearm.
The indictment alleges that on December 6, 2012, Kirkwood possessed the pistol. According to a law enforcement affidavit filed in the case, officers learned that Kirkwood was in possession of a gun and looked for him in the area of the 700 block of Central Avenue in St. Paul, Minnesota. When officers approached, they found Kirkwood and he was detained on an outstanding Anoka County warrant for an unrelated burglary. The pistol was found inside a black sock hidden nearby.
Because he is a felon, Kirkwood, also known as Virgil Lee Crenshaw, is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include second-degree burglary (2010), third-degree attempted burglary (2012), and other offenses. Because certain of these convictions constitute crimes of violence, Kirkwood is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.This case is the result of an investigation by the St. Paul Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Man Sentenced for Sex Trafficking of A Minor, Conspiring to Produce Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 40-year-old man was sentenced for running a prostitution operation in the Twin Cities that exploited underage and young women. United States District Court Judge Joan N. Ericksen sentenced Arthur James Chappell, no known address, to 336 months in federal prison, followed by 20 years of supervised release, on two counts of sex trafficking a minor, one count of possession of child pornography, one count of conspiracy to possess child pornography, one count of conspiracy to produce child pornography, two counts of enticing travel for prostitution, two counts of transportation with intent to engage in prostitution, one count of conspiracy to entice travel for prostitution, and one count of conspiracy to transport with intent to engage in prostitution. Chappell, also known as AJ and J, was indicted on April 4, 2012, and was convicted on October 24, 2012, following trial.
After today’s sentencing, Michael Feinberg, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE HSI”) St. Paul Field Office, said, “This sentence is the result of the great partnership ICE HSI has with the Bloomington Police Department and the Minnesota Bureau of Criminal Apprehension (“BCA”). Sex trafficking is an unmerciful crime, but because human trafficking is so widespread, no one entity can adequately address the problems it presents. Law enforcement agencies throughout Minnesota are committed to giving victims the help they need to come forward and help us end this terrible crime.”
The evidence presented at trial proved that from August 2006 through July 2007, Chappell ran a multi-state prostitution ring. In the summer of 2007, he recruited two girls under the age of 18 to engage in commercial sex acts as part of his business. In addition, Chappell possessed one or more items containing visual depictions of minors engaged in sexually explicit conduct, conspired with others to possess such depictions, and induced or coerced a child to engage in conduct for the purpose of producing child pornography. In July 2007, Chappell also enticed or coerced two adult females to travel in interstate commerce to engage in prostitution. Between August of 2006 and July of 2007, he conspired to persuade other women to travel in interstate commerce to engage in prostitution.
This case was the result of an investigation by the Bloomington Police Department, the BCA, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp and Special Assistant U.S. Attorney Colin P. Johnson.
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/Felon Indicted for Conspiring to Distribute Methamphetamine, Possessing A FirearmRead the Press Release
MINNEAPOLIS—Earlier this week in federal court, a 25-year-old man was indicted for conspiring to distribute more than 500 grams of the highly addictive and dangerous drug methamphetamine between 2009 and April 2011. On March 19, 2013, Jose Alfredo Varela-Meraz was charged with one count of conspiracy to distribute 500 or more grams of methamphetamine, one count of possession with intent to distribute 500 or more grams of methamphetamine, one count of using, carrying and possessing a firearm during and in relation to a drug-trafficking crime, one count of being a felon in possession of a firearm, and one count of illegal re-entry after removal.
The indictment alleges that from the fall of 2009 through April 20, 2011, Varela-Meraz conspired with others to distribute 500 or more grams of methamphetamine. It also alleges that on March 25, 2010, Varela-Meraz possessed with intent to distribute 500 or more grams of methamphetamine, and possessed a 9-millimeter handgun. In addition, the indictment alleges that on February 28, 2013, Varela-Meraz was found in the U.S. illegally after having been previously deported to Mexico in 2012, following a New Mexico conviction for re-entry of a removed alien. According to a law enforcement affidavit filed in the case, on March 25, 2010, Varela-Meraz was observed meeting with another suspect under surveillance in a parked vehicle at a parking lot in Roseville. The vehicle was stopped in Minneapolis, and officers seized approximately 447 grams of methamphetamine under the carpeting by the front passenger seat where Varela-Meraz was sitting. In a subsequent search, police found 678 additional grams of methamphetamine and a nine-millimeter handgun hidden under the vehicle’s center console.
Because he is a felon, Varela-Meraz is prohibited under federal law from possessing firearms or ammunition at any time. His prior Arizona convictions include possession and use of drug paraphernalia.
If convicted, Varela-Meraz faces a potential maximum penalty of life in prison on the conspiracy, possession with intent and carrying a firearm counts; and ten years on both the felon in possession and illegal re-entry counts. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration, the Ramsey County Sheriff’s Office, the Hennepin County Sheriff’s Office, the Minnesota State Patrol, and the police departments of Maplewood, Minneapolis and Roseville. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.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 Role in Cocaine Trafficking OperationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 41-year-old Hopkins woman was sentenced for conspiring to distribute cocaine and crack cocaine between May of 2009 and April of 2011. United States District Court Judge Donovan W. Frank sentenced Daphne Denise Walker to 120 months in prison on one count of conspiracy to distribute crack cocaine. Walker was indicted along with two co-defendants on February 22, 2012, and pleaded guilty on August 27, 2012.
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, “Ms. Walker served as an important extension of the violent Raymond Avenue Crips street gang and was a significant source of supply for crack cocaine being distributed in north Minneapolis. Federal arrests of the gang’s significant members and leaders dealt a swift blow, thwarting the gang’s ability to continue drug and weapon trafficking and acts of violence in Minnesota.”
In her plea agreement, Walker admitted that from May 5, 2009, through April 2, 2011, she conspired with others to distribute 280 or more grams of crack cocaine. Specifically, Walker admitted having an agreement with Gregory Hopkins to supply her with cocaine and crack cocaine on a regular basis. Walker would then distribute the drugs to her customers.
On December 19, 2012, co-defendant Jose Ramon Salgado Roacho, age 24, of Brooklyn Park, was sentenced to 28 months on one count of conspiracy to distribute five or more kilograms of cocaine. He pleaded guilty on May 10, 2012. In his plea agreement, Roacho admitted he acted as a cocaine source for Hopkins and others.
On August 31, 2012, co-defendant Reinor Bonnick, age 35, of St. Paul, was sentenced to 90 months in prison on one count of conspiracy to distribute cocaine. He pleaded guilty on May 21, 2012. In his plea agreement, Bonnick admitted he facilitated multiple cocaine transactions between Roacho and Hopkins. The total amount of cocaine involved in those transactions was between 500 grams and two kilograms.
In a related case, eight individuals were sentenced in connection with distributing controlled substances. All eight were charged on August 17, 2011, in a superseding indictment and pleaded guilty:
On July 12, 2012, Gregory Lamont Hopkins, age 36, of Minneapolis, was sentenced to 162 months in prison on one count of conspiracy to distribute controlled substances.
On April 27, 2012, Gregory Keaton, age 56, of Coon Rapids, was sentenced to 150 months on one count of possession with intent to distribute crack cocaine.
On April 19, 2012, Deellis Shannon, age 28, no known address, was sentenced to 120 months on one count of conspiracy to distribute controlled substances and one count of being felon in possession of a firearm.
On May 7, 2012, Derrick Bonnick, age 37, of Bloomington, was sentenced to 84 months on one count of conspiracy and one count of being a felon in possession of a firearm.
On February 7, 2012, Desmond Lee Brown, age 36, of Minneapolis, was sentenced to 68 months on one count of conspiracy.
On April 20, 2012, Manuel Dario Ramos, age 41, of Bloomington, was sentenced to 42 months one count of distribution of cocaine and one count of being a felon in possession of a firearm.
On June 26, 2012, Mohammad Mazhary, age 63, of Burnsville, was sentenced to 30 months on one count of maintaining a drug-involved premises.On September 25, 2012, Talaysha Johnson, age 34, of Minneapolis, was sentenced to one year and one day in prison on one count of conspiracy.
According to court documents filed in the related case, authorities began their investigation in October of 2010. On February 3, 2011, police made a controlled purchase of 25.3 grams of crack cocaine from Hopkins in Richfield. On July 11, 2011, police conducted a trash pull on Brown’s residence and recovered two plastic baggies containing cocaine residue. On August 2, 2011, authorities executed a search warrant at Brown’s residence and recovered approximately 302 grams of crack cocaine, approximately 138 grams of cocaine, two digital scales, and five guns. On July 8, 2011, police executed a search warrant at Keaton’s residence as well as in his van. Inside the van, officers recovered approximately 197.3 grams of crack cocaine and approximately 175.28 grams of cocaine. In Keaton’s residence, police seized $9,400 in cash, drug packaging materials, two digital scales, and numerous baggies containing traces of cocaine and crack cocaine.
Both of these cases were investigated by the U.S. Drug Enforcement Administration, the Bloomington Police Department, the Hennepin County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Marshals Service, the St. Paul Police Department, the Richfield Police Department, and the Minneapolis Police Department. They were prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Arden Hills Man Indicted for Distributing 12 Pounds of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Arden Hills man was indicted for distributing approximately 12 pounds of methamphetamine. Marcelino Garcia was charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine.
The indictment alleges that on March 15, 2013, Garcia, also known as Moreno Marcelino Garcia and Marcelino Garcia-Moreno, conspired with others to distribute 500 or more grams of methamphetamine, and that Garcia knowingly possessed with intent to distribute 500 or more grams of methamphetamine. According to a law enforcement affidavit filed in the case, authorities learned about Garcia during routine narcotics’ investigations in the Twin Cities. On March 15, police arranged a controlled purchase at a store parking lot in Shoreview. Following the transaction, Garcia was arrested, and officers seized six bags containing approximately 5,100 grams of methamphetamine, along with packaging materials.
If convicted, Garcia faces a potential maximum penalty of life in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case is being prosecuted by Assistant United States Attorney Julie E. Allyn.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/concern/meth.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.
Le Center Man Pleads Guilty to Receiving Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old Le Center man pleaded guilty to receiving several videos containing child pornography. Harold Duane Davenport pleaded guilty to one count of receipt of child pornography. Davenport, who was indicted on November 5, 2012, entered his plea before United States District Court Judge David S. Doty.
In his plea agreement, Davenport admitted that from September 16, 2009, through February 6, 2010, he knowingly received visual depictions over the Internet that involved minors engaged in sexually explicit conduct. In addition, Davenport admitted that he possessed more than 600 images of child pornography, including images and videos portraying sadistic or masochistic conduct or other depictions of violence.
For his crime, Davenport faces a potential maximum penalty of 20 years in prison, with a mandatory minimum penalty of five years in prison. Judge Doty will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the LeSueur County Sheriff’s Office, and the Minneapolis Police Department. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.Receipt of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Kimball Nurse Sentenced for Fraudulently Obtaining A Controlled SubstanceRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 43-year-old Kimball nurse was sentenced for fraudulently obtaining a controlled substance, namely hydromorphone hydrochloride, commonly sold as Dilaudid. United States District Court Judge Patrick J. Schiltz sentenced Blake Daniel Zenner to 24 months in federal prison on one count of obtaining a controlled substance by fraud. In addition, Zenner was ordered to pay $340,000 in restitution. Zenner was charged on September 4, 2012, and pleaded guilty on September 26, 2012.
Following today’s sentencing, Dan Henson, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations (“FDA-OCI”) Chicago Field Office, one of the federal investigative agencies in this case, said, “The defendant exhibited a blatant and heartless disregard for the patients he victimized. FDA-OCI is committed to investigating crimes like these that pose a significant threat to public health, and we commend the U.S. Attorney’s Office for its prosecution of this matter.”
In his plea agreement, Zenner admitted that from November 2010 to March 8, 2011, he fraudulently acquired Dilaudid while working as a registered nurse at a hospital in St. Cloud, Minnesota. Zenner accessed hospital lockboxes and used syringes to remove hydromorphone hydrochloride from intravenous bags intended for hospital patients. On some occasions, he injected the intravenous bags with saline solution to replace the missing Dilaudid before returning the bags to the lockboxes for patient use. As a result of Zenner’s actions, approximately 25 hospital patients were infected with bacteria.
This case was the result of an investigation by FDA-OCI and the U.S. Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.Champlin Felon Sentenced for Possessing FirearmsRead the Press Release
MINNEAPOLIS— Earlier today in federal court, a 21-year-old Champlin felon was sentenced for possessing a nine-millimeter pistol and a .44-caliber revolver. United States District Court Chief Judge Michael J. Davis sentenced Deandre Franklin to 60 months in federal prison on one count of being a felon in possession of a firearm. Franklin was indicted on July 23, 2012, and pleaded guilty on November 13, 2012.
In his plea agreement, Franklin admitted that on January 2, 2012, he traveled with two women to Bill’s Gun Shop in Robbinsdale. The women purchased .44-caliber ammunition, nine-millimeter ammunition, and ammunition magazines. Minneapolis police later stopped their car in north Minneapolis and found two firearms in the vehicle, a Glock, nine-millimeter pistol and a Charter Arms, .44-caliber revolver. One of the guns was found on Franklin and the other was discovered under his seat.
Because he is a felon, Franklin is prohibited under federal law from possessing firearms at any time. He was previously convicted of second-degree drug possession in Hennepin County in 2011.This case was the result of an investigation conducted by the Safe Streets Task Force. Safe Streets is a FBI-sponsored task force that focuses on combating violent street crime as well as gang and drug trafficking offenses. The case was prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.
Rochester Man Sentenced for Swindling $11 Million from InvestorsRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 35-year-old Rochester man was sentenced for swindling more than $11 million through an investment scam. On March 18, 2013, United States District Court Judge Ann D. Montgomery sentenced Jason Michael Meyer to 60 months in federal prison on one count of wire fraud and one count of money laundering. Meyer was charged on August 21, 2012, and pleaded guilty on September 18, 2012.
In his plea agreement, Meyer admitted that he started an investment company, 3 Hooligans Investment Properties, LLC (3 Hooligans), in 2007. Meyer then represented that he was an experienced investor and began soliciting people to invest their money with 3 Hooligans. He promised his clients both significant and rapid returns for their investments, with little or no risk. He deposited their money into a bank account he opened at Wells Fargo. Instead of investing their money, however, Meyer often used the funds to pay for his personal expenses, including payments on his house in Rochester, family vacations, and car payments on his wife’s BMW. To continue the scheme, Meyer found new clients and used their money to pay previous clients.Until the fraudulent scheme was discovered in 2010, Meyer participated in approximately 30 transactions of money laundering and 30 transactions of wire fraud, which together, resulted in losses exceeding $11 million.
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
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.Plymouth Man Pleads Guilty to Smuggling Thousands of Rounds of Ammunition to the UkraineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 37-year-old Plymouth man pleaded guilty to smuggling ammunition from the United States to the Ukraine. Paul Kalash pleaded guilty to one count of smuggling goods from the United States. Kalash, who was charged on February 11, 2013, entered his plea before U.S. District Court Chief Judge Michael J. Davis.
On February 22, 2011, U.S. Custom and Border Protection (“CBP”) agents seized two packages shipped by Kalash to the Ukraine containing a firearm stock and 2,600 rounds of assorted ammunition. Packages seized on March 6 and 10, 2011, each contained 1,700 rounds of ammunition. And several packages seized on April 1, 2011, contained 2,850 rounds and 300 9-millimeter shell cases.
On March 7, 2011, CBP sent Kalash a notice of seizure, explaining that his packages were seized, and that a license was required to export ammunition. On April 3, 2011, Kalash responded and requested that the ammunition be returned to him. In his letter, Kalash argued that he was sending the items for the purpose of providing his friend with better marksmanship competition-grade ballistics.Following his receipt and acknowledgement of the letter, on May 6, 2011, CBP seized yet another package sent by Kalash containing 950 rounds of assorted ammunition. In addition, Kalash admitted that he shipped other packages to the Ukraine during this time period about which the government was not fully aware.
For his crime, Kalash faces a potential maximum penalty of ten years in federal prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and CBP. It is being prosecuted by Assistant U.S. Attorney Charles J. Kovats.Federal Jury Finds Native Mob Gang Members Guilty of Attempted Murder, Racketeering, and Other ChargesTwenty-one of Twenty-five Indicted Gang Members Earlier Pleaded Guilty to RICO-related Charges, While Another Pleaded Guilty to MurderRead the Press Release
MINNEAPOLIS— Earlier today in federal court, a jury found three members of the Native Mob street gang guilty on a number of charges related to the gang’s criminal activity. Following a nearly two-month trial, the jury found Wakinyon Wakan McArthur, age 34, guilty on six counts, including racketeering; William Earl Morris, age 25, guilty on four counts; and Anthony Francis Cree, age 26, guilty on six counts, including racketeering and attempted murder (see attached chart for specific charges). On July 19, 2012, the defendants were charged in a superseding indictment.
Following today’s conviction, U.S. Attorney Todd Jones said, “The Native Mob has wreaked havoc on tribal and non-tribal communities across Minnesota and our region. Its members traffick in drugs and guns, using violence, intimidation, and in some instances, murder, against those who stand in their way. This case, brought against more than two dozen Native Mob members, including its leaders, exemplifies the broad reach and effectiveness of a federal RICO prosecution, which carries penalties of up to life in prison, in attacking violent criminal organizations. This investigation took several years and the cooperation of numerous local, state, federal, and tribal law enforcement agencies. Their hard work has made our communities safer."
The Native Mob is a regional criminal gang that originated in Minneapolis in the early 1990s. Members routinely engage in drug trafficking, assault, robbery, and murder. Membership is estimated at 200, with new members, including juveniles, regularly recruited from communities with large, male, Native American populations. Association with the gang is often signified by wearing red and black clothing or sporting gang-related tattoos. According to the 2011 National Gang Threat Assessment, the Native Mob is one of the largest and most violent American Indian gangs in the U.S. and is most active in Minnesota and Wisconsin.
The evidence presented at trial proved that since at least the mid-1990s, the named defendants and others have conspired to conduct criminal activity through an “enterprise,” namely, the Native Mob, in violation of the federal Racketeering Influenced and Corrupt Organizations Act (“RICO”). The primary objective of this “enterprise” is to preserve, protect, promote, and enhance the Native Mob’s power, territory, and financial gains.
To that end, gang members distribute illegal drugs, from crack cocaine to ecstasy. They also provide monetary support to other members, including those incarcerated; share with one another police reports, victim statements, and other case discovery; hinder or obstruct officials from identifying or apprehending those wanted by the law; and intimidate witnesses to Native Mob crimes. Moreover, they maintain and circulate firearms for gang use and commit acts of violence, including murder, against individuals associated with rival gangs.
On December 21, 2012, Shaun Michael Martinez, age 35, pleaded guilty to shooting and killing fellow gang member Jeremee Kraskey. Martinez, also known as Tinez, pleaded guilty to one count of murder resulting from the use and carrying of a firearm during and in relation to a crime of violence.
In his plea agreement, Martinez admitted that on February 26, 2011, he killed Kraskey to prevent him from offering law enforcement information about the Native Mob’s criminal activities, which were the subject of a joint federal-state investigation. Martinez specifically admitted that on February 26, 2011, he drove Kraskey to a residence in the 3500 block of 14th Avenue South in Minneapolis, where he shot Kraskey three times. Martinez further admitted his use of a firearm occurred during and in relation to a conspiracy to violate federal racketeering laws.
According to the evidence presented at trial, the defendants committed numerous overt acts as evidence of their “criminal enterprise”:
Immediately after the death of Kraskey, McArthur and others held an “emergency” Native Mob council meeting to discuss, among other things, Kraskey’s murder.
On March 4, 2010, McArthur, Cree, and others attempted to kill a man by shooting him three times with a .40-caliber handgun, the attack being in retaliation for the man’s supposed cooperation with law enforcement. At the time of the shooting, the man was holding his five-year-old daughter in his arms.
On July 10, 2010, McArthur and others attended a meeting to discuss killing enemies of the Native Mob, the transportation of firearms from northern Minnesota to Minneapolis, the storage and location of gang firearms, drug trafficking, collecting money for incarcerated Native Mob members, and the identity of persons believed to be cooperating with law enforcement against the Native Mob.
On March 7, 2010, in south Minneapolis, Native Mob members attempted to kill a Native Vice Lord gang member by shooting him in the neck.
On August 24, 2010, McArthur ordered members of the Native Mob a drive-by shooting of a rival gang member’s apartment in Bemidji.
On March 28, 2011, McArthur ordered members of the Native Mob to conduct a home invasion in Cass Lake.
For their crimes, the defendants who were tried and convicted in this case face a potential maximum sentence of between 20 years and life in federal prison. Since the federal justice system does not have parole, prison terms will be served virtually in their entirety behind bars. United States District Court Judge John R. Tunheim will determine their sentences at a future hearing, yet to be scheduled. See the attached chart for a list of other defendants and charges.
In addition to the defendants in this case, a number of Native Mob members have been prosecuted in related cases: Kenny Roberts and Corey Benjamin were convicted in 2010 of being armed career criminals in possession of firearms; Gordon Reese was convicted in 2007 of assault, methamphetamine trafficking, and possession of firearms, and he is serving a 30-year sentence; Rueben Crowfeather was convicted in 2008 of drug trafficking and has served his sentence; and Alden Fairbanks has pleaded guilty to racketeering conspiracy charges and is awaiting sentencing.This case was the result of a long-term, cross-jurisdictional investigation conducted by numerous local, state, federal, and tribal law enforcement officers dedicated to making Minnesota’s streets and communities safer. These agencies include representatives from the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Drug Enforcement Administration; the U.S. Bureau of Indian Affairs; the FBI-funded Headwaters Safe Trails Task Force; the Paul Bunyan Drug Task Force; the Minnesota Department of Corrections; the Minnesota Bureau of Criminal Apprehension; the Carlton County Sheriff’s Office; the Mille Lacs Tribal Police Department; the Bemidji Police Department; and the Minneapolis Police Department. These investigators were assisted by those from—in alphabetical order—the Becker County Sheriff’s Office, the Beltrami County Sheriff’s Office, the Carlton County Attorney’s Office, the Cass County Attorney’s Office, the Cass County Sheriff’s Office, the Crow Wing County Sheriff’s Office, the Douglas County Sheriff’s Office of Wisconsin, the Duluth Police Department, the Fon du Lac Tribal Police Department, the Fridley Police Department, the Itasca County Sheriff’s Department, the Hennepin County Attorney’s Office, the Hennepin County Sheriff’s Office, the Hubbard County Sheriff’s Office, the Leech Lake Tribal Police Department, the LCO Reservation Police Department, the Lower Sioux Tribal Police Department, the Mahnomen County Sheriff’s Office, the Minnesota State Patrol, the Mille Lacs County Attorney’s Office, the Mille Lacs County Sheriff’s Office, the New Brighton Police Department, the North Central Drug Task Force, the Prior Lake Police Department, the Red Lake Tribal Police Department, the Redwood County Sheriff’s Office, Richfield Police Department, the Sherburne County Sheriff’s Office, the St. Paul Police Department, the U.S. Marshals Service, the Minneapolis Violent Offender Task Force, the Washington County Sheriff’s Office, and the White Earth Tribal Police Department.
This case was prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Steven L. Schleicher.Chart
Career Criminal Sentenced for Possessing A Semi-automatic PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 43-year-old career criminal was sentenced for possessing a stolen .45-caliber, semi-automatic pistol. United States District Court Judge Joan N. Ericksen sentenced Michael Scott Canfield, of St. Paul, to 188 months in federal prison on one count of being a felon in possession of a firearm. He was also ordered to pay $1,000 in restitution concerning a related burglary. Canfield was indicted on July 11, 2012, and pleaded guilty on September 28, 2012.
In his plea agreement, Canfield admitted that on June 25, 2012, he was in possession of a Colt, .45-caliber handgun after having been previously convicted of one or more felonies. He also admitted that the handgun had traveled in interstate commerce prior to his possession of the weapon.
The investigation in this case indicated that on June 25, 2012, an Xcel Energy meter reader saw Canfield coming out of a house in Stillwater, Minnesota, carrying a firearm. Canfield claimed that “his” house had just been robbed. Canfield went to the back of the house, and the meter reader heard gunfire. The police responded to the scene and determined that Canfield had stolen several items from the house. They recovered two .45-caliber shell casings. The police later found Canfield’s get-away car with some of the stolen goods in it. Near the car was a Colt Commander, .45-caliber, semi-automatic pistol.
Because he was a felon, Canfield was prohibited under federal law from possessing a firearm at any time. His prior Ramsey County convictions included unauthorized use of a motor vehicle (1988), damage to property (1989), receiving stolen property (1991 and 1993), theft (1992 and 1994), and fleeing a peace officer (2006). In addition, Canfield was convicted of receiving stolen property in Kanebec County (1993), second-degree burglary in Sherburne County (1996), fleeing police in a motor vehicle in Dakota County (2006), two counts of first-degree burglary in Stearns County (2006), and recklessly endangering safety in St. Croix County, Wisconsin (2000).
Since at least three of Canfield’s prior offenses constituted crimes of violence, his sentence was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. And because the federal system does not have parole, offenders spend virtually their entire prison sentences behind bars.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stillwater Police Department. The case was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.Minneapolis Woman Sentenced for Attempted Sex Trafficking of A MinorRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 34-year-old Minneapolis woman was sentenced on one count of sex trafficking a minor. United States District Court Judge Ann D. Montgomery sentenced Kimberly Susan Latham to 132 months in federal prison. Latham was indicted on January 19, 2012, and pleaded guilty on May 4, 2012.
Following today’s sentencing, J. Chris Warrener, Special Agent in Charge of the FBI’s Minneapolis Field Office, the lead federal investigative agency on this case, said, “This case underscores the FBI’s continued commitment to stop crimes against children. Hopefully, this conviction and sentence will serve to deter similar criminal behavior.”
In her plea agreement, Latham admitted that in November of 2011, she met two young women, reportedly ages 17 and 18, and invited them to stay with her in her Minnetonka apartment. She then asked the 17-year-old minor to engage in commercial sex acts and used the apartment for that purpose. Latham also used the Internet and cell phones to advertise the services. Because of her sex trafficking activity, Latham admittedly received financial benefit.This case was the result of an investigation by the Federal Bureau of Investigation and the Minnetonka Police Department. It was 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.fbi.gov/about-us/investigate/civilrights/human_traffickingCass Lake Felon Indicted for Possessing A .357 RevolverRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 25-year-old Cass Lake felon with possessing a .357-caliber revolver. The indictment, which was filed on March 12, 2013, charges Anthony Duane Howard with one count of being a felon in possession of a firearm. The indictment was unsealed following Howard’s initial appearance in federal court.
The indictment alleges that on December 1, 2012, Howard possessed the revolver. Because he is a felon, Howard is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include first-degree assault (2003) and fourth-degree assault (2011).
If convicted, Howard 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 Minneapolis Police Department, and the Violent Impact Team for the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Minneapolis Man Sentenced for Robbing Bank, Four StoresRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 30-year-old Minneapolis man was sentenced for committing a series of armed robberies at various businesses, including a US Bank. United States District Court Judge Patrick J. Schiltz sentenced Donte McKinley Hollister to 210 months in prison on one count of armed bank robbery. As a part of his plea agreement, Hollister also admitted committing four additional armed robberies that he was charged with under the Hobbs Act. Hollister was indicted on January 11, 2012, and pleaded guilty on September 18, 2012.
In his plea agreement, Hollister admitted that on October 17, 2011, he stole approximately $1,890 from the US Bank located at 2338 Central Avenue in Minneapolis. During the robbery, Hollister brandished a black and silver handgun, vaulted the teller counter, and demanded cash from the teller. After the teller gave him about $1,890, Hollister fled the bank.
In addition, Hollister also admitted that he stole approximately $300 from the Way to Go Sports store in Golden Valley on September 26, 2011; approximately $200 from the Wine Styles store in Medina on September 27, 2011; attempted to steal cash from the Mattress Giant store in Roseville on October 7, 2011; and attempted to steal cash from the Second Wind Exercise Equipment store in St. Louis Park on October 13, 2011. In each of these instances, Hollister brandished a firearm to threaten store employees. He was arrested on October 17 in connection with the September 26 robbery.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent habitual criminals who commit armed robbery in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, offenders serve virtually their entire prison sentences behind bars.
The case was the result of an investigation by U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Hennepin County Violent Offenders Task Force, and the police departments of Brooklyn Park, Golden Valley, Medina, Roseville and St. Louis Park. It was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases regarding foreign nationals who entered the United States illegally after being deported as criminals. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, United States District Court Chief Judge Michael J. Davis sentenced Hugo Beltran-Aragon, age 29, to time served. Beltran-Aragon was indicted on February 15, 2011, and pleaded guilty on September 10, 2012. In his plea agreement, Beltran-Aragon admitted that on June 8, 2010, he was found in the U.S. illegally after having been previously deported to Mexico in 2003, following a Hennepin County conviction for third-degree criminal sexual conduct.
This case was the result of an investigation by the Brooklyn Park Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (“ICE ERO”). It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.In the second case, on March 11, 2013, Sergio Vasquez, age 36, pleaded guilty before U.S. District Court Judge Susan Richard Nelson in St. Paul. He was indicted on January 8, 2013. In his plea agreement, Vasquez admitted that on December 4, 2012, he was found in the U.S. after having been previously deported to Mexico in 2008, following a 2003 Pennsylvania conviction for delivery of a controlled substance. On December 3, 2012, Vasquez was arrested by Minneapolis Police for DWI in connection to a personal-injury crash in south Minneapolis. He was identified as an illegal alien with a criminal record. That identification was made though the ICE’s Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.
For his crime, Vasquez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Police Department and ICE ERO. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Wayzata Company Agrees to Pay More Than $400,000 for Violating Clean Water ActRead the Press Release
MINNEAPOLIS—A Wayzata-based company has entered into an agreement with the federal government to settle allegations that it violated the Clean Water Act by filling a wetland near the Elk River outside of Sauk Rapids without complying with the terms of a permit issued by the United States Army Corps of Engineers. Under the terms of the agreement, filed in the form of a consent decree on March 5, 2013, DMH Partners North, LLC, agreed to pay a $75,000 civil penalty to the U.S. and to purchase wetland credits valued at approximately $340,000.
In its complaint, the federal government alleged that in August 2008, the Army Corps of Engineers issued DMH a permit under Section 404 of the Clean Water Act in connection with DMH’s commercial development of a 34-acre parcel in Sauk Rapids. That parcel contained approximately 10.2 acres of wetlands protected by the Clean Water Act. The wetland was comprised of sedge meadow, shallow marsh, shrub carr, and hardwood forest plant community types. The wetland abuts a tributary that flows to the Mississippi River via the Elk River.
The permit allowed DMH to discharge fill material into 7.8 acres of the wetland provided certain conditions were met, including purchasing off-site wetland credits intended to mitigate harm to the wetland. In June 2009, the Corps inspected the site and found that DMH had filled wetland on the site, but abandoned it without completing the conditions of the permit, including the purchase of off-site wetland credits. It was later discovered that the site had been sold at a foreclosure auction.
The Corps issued DMH and its officers notices of permit violations in September 2009 and a Clean Water Act Compliance Order in February 2010, demanding DMH rectify the violations. DMH did not comply with either the permit or compliance order.
Assistant U.S. Attorney Ann M. Bildtsen represented the United States in this court action.Wayzata Company Agrees to Pay More Than $400,000 for Violating Clean Water ActRead the Press Release
MINNEAPOLIS—A Wayzata-based company has entered into an agreement with the federal government to settle allegations that it violated the Clean Water Act by filling a wetland near the Elk River outside of Sauk Rapids without complying with the terms of a permit issued by the United States Army Corps of Engineers. Under the terms of the agreement, filed in the form of a consent decree on March 5, 2013, DMH Partners North, LLC, agreed to pay a $75,000 civil penalty to the U.S. and to purchase wetland credits valued at approximately $340,000.
In its complaint, the federal government alleged that in August 2008, the Army Corps of Engineers issued DMH a permit under Section 404 of the Clean Water Act in connection with DMH’s commercial development of a 34-acre parcel in Sauk Rapids. That parcel contained approximately 10.2 acres of wetlands protected by the Clean Water Act. The wetland was comprised of sedge meadow, shallow marsh, shrub carr, and hardwood forest plant community types. The wetland abuts a tributary that flows to the Mississippi River via the Elk River.
The permit allowed DMH to discharge fill material into 7.8 acres of the wetland provided certain conditions were met, including purchasing off-site wetland credits intended to mitigate harm to the wetland. In June 2009, the Corps inspected the site and found that DMH had filled wetland on the site, but abandoned it without completing the conditions of the permit, including the purchase of off-site wetland credits. It was later discovered that the site had been sold at a foreclosure auction.
The Corps issued DMH and its officers notices of permit violations in September 2009 and a Clean Water Act Compliance Order in February 2010, demanding DMH rectify the violations. DMH did not comply with either the permit or compliance order.
Assistant U.S. Attorney Ann M. Bildtsen represented the United States in this court action.Federal Jury Convicts Men for 2011 New Year Day Robbery and Killing on Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found two men guilty for murdering a couple on the Red Lake Indian Reservation on New Year’s Day 2011. Following a two-week trial, the jury convicted Geshik-O-Binese Martin, age 30; Edward McCabe Robinson, age 28; both of Red Lake on two counts of murder in the first degree, two counts of murder in the second degree, and one count of robbery. The jury also found David John Martin, age 46, of Columbia Heights, guilty on one count of robbery. A fourth defendant, George Allen Martin, age 24, also of Red Lake, was acquitted on all counts. On January 15, 2013, the four were charged in a superseding indictment.
Following today’s convictions, United States Attorney B. Todd Jones said, “This case is an example of the troubling levels of senseless violence our communities face every day. Thanks to the persistence of tribal and federal law enforcement, we are turning the tide against it. Our office is pleased with today’s verdicts, and hope these convictions are the next step toward justice for the victims’ families and the community.”
J. Chris Warrener, the Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, added, “These convictions highlight both the cooperative efforts of the law enforcement agencies involved and the steadfast commitment of these agencies to the safety of the citizens of Red Lake.”
The trial evidence proved that on January 1, 2011, Craig David Roy and Darla Ann Beaulieu were killed while money and illegal drugs were stolen from Roy’s reservation residence. The bodies of Beaulieu and Roy were found in the remains of the house, which was destroyed by fire on that same day. Autopsies determined that both victims were killed as a result of multiple stab wounds and not the fire itself.
On February 26, 2013, Kevin John Needham, age 21, also of Red Lake, pleaded guilty to one count of robbery. In his plea agreement, Needham admitted that he agreed to travel with Robinson, Stately, and the Martins to Roy’s residence, the intention being to take money and cocaine by force. Among other things, Needham admittedly stood in the driveway of the Roy residence during the robbery.
On November 15, 2012, Terin Rene Stately, age 25, also of Red Lake, pleaded guilty to one count of aiding and abetting robbery. In her plea agreement, Stately admitted driving the group to and from the Roy residence and waiting in the vehicle during the robbery. She also admittedly knew of the plan to rob Roy.
For their crimes, Robinson and Geshik-O-Binese Martin face potential maximum penalties of life in federal prison. They, and David Martin face a potential maximum penalty of 15 years in federal prison for robbery. Because the federal criminal justice system does not have parole, convicted offenders spend virtually their entire prison sentences behind bars. U.S. District Court Judge Donovan W. Frank will determine their actual sentences 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, with assistance from the Minnesota Bureau of Criminal Apprehension and the State Fire Marshal. It is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Nathan P. Petterson.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Business Owner Sentenced for Failure to Pay Withholding TaxesRead the Press Release
MINNEAPOLIS –Yesterday in federal court, an owner of ATT Home Health Care, Inc., which provided general household services to clients, was sentenced for failing to account for and pay over to the Internal Revenue Service (“IRS”) federal income taxes and FICA contributions withheld from employee paychecks. On March 11, 2013, United States District Court Judge David S. Doty sentenced Tony Nghia Nguyen to five years of probation and 30 days home detention on one count of failure to account for and pay over withheld taxes. Nguyen was indicted on August 1, 2011, and pleaded guilty on August 1, 2012.
In his plea agreement, Nguyen admitted that from July 1, 2006, through June 30, 2007, he failed to provide the IRS with the taxes withheld from employee pay or file the required tax forms, even though he was responsible for doing so. Those taxes included federal income taxes as well as FICA contributions, made up of social security or Medicare payments. As a result of Nguyen’s actions, the federal government, through the IRS, lost well in excess of $287,000 in income taxes and FICA payments due.
This case was the result of an investigation by the IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and Robert M. Lewis.
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.Woman Sentenced for Theft of Public Money from FEMARead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 62-year-old woman was sentenced for stealing $8,600 in disaster relief from the Federal Emergency Management Agency (“FEMA”). United States District Court District Court Judge Donovan W. Frank sentenced Rena McCarter, of Kenner, Louisiana, to three years of probation on one count of theft of public money. In addition, McCarter was ordered to serve 50 hours of community service and pay $8,600 in restitution. McCarter was charged on October 2, 2012, and pleaded guilty on October 26, 2012.
In her plea agreement, McCarter admitted that on September 16, 2005, she told FEMA that she resided in New Orleans when Hurricane Katrina hit the Gulf Coast, that her apartment and personal property had been damaged by the disaster, and that she needed emergency assistance for housing, food, and clothing. However, McCarter was residing in Minnesota when Hurricane Katrina hit on August 29, 2005. In fact, McCarter lived in housing subsidized by the Minnesota Metropolitan Council from October 2004 through September 2009.
On June 23, 2008, McCarter faxed a fraudulent application to FEMA requesting disaster relocation assistance. Based on McCarter’s fraudulent application, FEMA gave her a $1,458 grant. In total, McCarter received $8,600 in disaster assistance funding from FEMA that she was not entitled to have because she did not reside in the area affected by Hurricane Katrina.
This case was the result of an investigation by the U.S. Department of Housing and Urban Development, with cooperation of the Justice Department’s Hurricane Katrina Fraud Task Force. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.Woman Sentenced for Theft of Public Money from FEMARead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 62-year-old woman was sentenced for stealing $8,600 in disaster relief from the Federal Emergency Management Agency (“FEMA”). United States District Court District Court Judge Donovan W. Frank sentenced Rena McCarter, of Kenner, Louisiana, to three years of probation on one count of theft of public money. In addition, McCarter was ordered to serve 50 hours of community service and pay $8,600 in restitution. McCarter was charged on October 2, 2012, and pleaded guilty on October 26, 2012.
In her plea agreement, McCarter admitted that on September 16, 2005, she told FEMA that she resided in New Orleans when Hurricane Katrina hit the Gulf Coast, that her apartment and personal property had been damaged by the disaster, and that she needed emergency assistance for housing, food, and clothing. However, McCarter was residing in Minnesota when Hurricane Katrina hit on August 29, 2005. In fact, McCarter lived in housing subsidized by the Minnesota Metropolitan Council from October 2004 through September 2009.
On June 23, 2008, McCarter faxed a fraudulent application to FEMA requesting disaster relocation assistance. Based on McCarter’s fraudulent application, FEMA gave her a $1,458 grant. In total, McCarter received $8,600 in disaster assistance funding from FEMA that she was not entitled to have because she did not reside in the area affected by Hurricane Katrina.
This case was the result of an investigation by the U.S. Department of Housing and Urban Development, with cooperation of the Justice Department’s Hurricane Katrina Fraud Task Force. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.St. Paul Man Pleads Guilty to Bank FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 37-year-old St. Paul man pleaded guilty to fraudulently obtaining funds from several financial institutions. Christopher Terrelle Harness pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Harness, who was indicted on November 20, 2012, entered his plea before United States District Court Judge David S. Doty.
In his plea agreement, Harness admitted that from October 2007 through July 2012, he obtained money from banks by depositing checks, drawn on the accounts of other individuals, that he knew were either stolen or not backed by sufficient funds into fraudulently opened bank accounts in order to deceive the banks into honoring ATM withdrawals from those bank accounts out of the falsely-inflated balances.
Harness also admitted that others, acting at his direction, opened bank accounts at several financial institutions with the intent that those accounts would be used to accommodate the scheme. In addition, Harness admitted that he and others stole checks from other individuals and forged those individuals’ signatures on the stolen checks. Harness admittedly deposited the stolen checks into the fraudulently opened bank accounts using ATMs. After the stolen checks were deposited, cash was withdrawn. In total, the victimized institutions sustained approximate losses of between $30,000 and $400,000.
For his crimes, Harness faces a potential maximum penalty of 30 years in prison on the bank fraud count, and a mandatory minimum penalty of two years on the aggravated identity theft count to run consecutive to any penalty on the bank fraud count. Judge Doty will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the U.S. Postal Inspection Service and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and Manda M. Sertich.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspxMinneapolis Man Pleads Guilty in Armed Robbery of A St. Paul PharmacyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 31-year-old Minneapolis man pleaded guilty in connection with the April 3, 2012, armed robbery of the West 7th Pharmacy in St. Paul. Michael Brooks Bynum pleaded guilty to one count of interference with commerce by robbery pursuant to the Hobbs Act, and one count of possession of a firearm in furtherance of a crime of violence. Bynum, who was indicted along with two co-defendants on July 10, 2012, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Bynum admitted that on April 3, he drove Ray James Brown, age 24, and Rayshawn Earl James Brown, age 21, both of Minneapolis, to the pharmacy with the intent to rob it. Bynum also admitted that the three had planned the robbery together, and that after the robbery he drove the three away until they were stopped by police. In addition, Bynum admitted he participated in the armed robberies of Lloyds Pharmacy in St. Paul on February 18, 2012, the Best Aid Pharmacy in St. Louis Park on March 15, 2012, and the Pro Pharmacy in St. Paul on March 27, 2012.
In September 2012, Ray Brown pleaded guilty to two counts of possession of a firearm during and in relation to a crime of violence, and Rayshawn Brown pleaded guilty to one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of possession of a firearm in furtherance of a crime of violence. In their plea agreements, they admitted entering the pharmacy wearing gloves and masks. Ray Brown admitted pointing a .40-caliber, semi-automatic pistol at store employees and demanded they get down on the floor. Ray Brown also admitted ordering the pharmacist to place pharmaceutical drugs, such as Percocet, Vicodin and Oxycontin into a white plastic bag. Then, they admitted running from the store to the awaiting Cadillac. In addition, Ray Brown and Rayshawn Brown admitted running from police after the Cadillac was stopped. Ray Brown was apprehended following a short foot chase, and police recovered the pistol he tossed during the pursuit. Rayshawn Brown was arrested about an hour later after emerging from behind a nearby house, claiming to be a homeless person who lived under the porch.
In addition, Ray Brown admitted that he participated in the armed robberies of Lloyds Pharmacy in St. Paul on February 18, 2012, the Best Aid Pharmacy in St. Louis Park on March 15, 2012, and the Pro Pharmacy in St. Paul on March 27, 2012. Rayshawn Brown also admitted that he participated in the Pro Pharmacy robbery.
For their crimes, Bynum and Rayshawn Brown face a potential maximum penalty of 20 years in federal prison on the interference with commerce by robbery pursuant to the Hobbs Act count. All three defendants face a mandatory minimum of seven years and a maximum penalty of life in prison on the possession of a firearm in furtherance of a crime of violence count, while Ray Brown faces a mandatory minimum penalty of 25 years on the second possession of a firearm during and in relation to a crime of violence count. Judge Nelson will determine their sentences at a future hearing, yet to be scheduled.
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery in businesses involved in interstate commerce. Federal prosecution of these offenders is sometimes beneficial since the penalties may be tougher than under state law. To that end, the U.S. Attorney’s Office and its County Attorney partners are working together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.
This case is the result of an investigation by the St. Paul Police Department, the St. Louis Park Police Department, the Hennepin County Violent Offender Task Force, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.Finland, Minnesota, Men Sentenced for Violating the Endangered Species ActRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old from the northern Minnesota community of Finland was sentenced for violating the Endangered Species Act. United States District Court Judge Ann D. Montgomery sentenced Kyler James Jensen to time served on two counts of violating the Endangered Species Act. Jensen was indicted on July 16, 2012, and pleaded guilty on November 13, 2012.
On March 7, 2013, Judge Montgomery sentenced Vernon Lee Hoff, age 55, also of Finland, to one month in prison and a $2,500 fine on one count of violating the Endangered Species Act and one count of false statements to a federal officer, a felony. He was convicted by a jury in Duluth on November 16, 2012. As a result of his felony convictions, Hoff will no longer be able to possess firearms and may be ineligible for federal contracts.
Following today’s sentencing, Gregory Jackson, Special Agent in Charge for the Midwest Region of the U.S. Fish and Wildlife Service (“USFWS”) Office of Law Enforcement, said, “We are pleased with the outcome, and want to thank the conservation offices from the Minnesota Department of Natural Resources for their partnership and continued commitment to working together in an effort to fight wildlife crime in Minnesota.”The evidence presented at trial proved that Hoff lied to a USFWS official when asked whether he spoke on the telephone with Jensen about transporting two wolf carcasses that Jensen purposely killed with his vehicle on February 17, 2010. In fact, Hoff denied that any call had taken place. After the call, Jensen loaded the two gray wolves into his vehicle, traveled to Superior National Forest, and buried them with the use of a bulldozer, as instructed by Hoff. At the time, the gray wolf was listed as a threatened species under the Endangered Species Act. It was removed from that list in Minnesota in January of 2012.
This case was the result of an investigation by the USFWS and the Minnesota Department of Natural Resources. It was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.8 Men Indicted for Conspiring to Distribute More Than 1,000 Kilograms of MarijuanaRead the Press Release
MINNEAPOLIS—A federal indictment unsealed last week charges eight men for conspiring to distribute more than 1,000 kilograms of marijuana in Minnesota. The indictment, which was filed on March 5, 2013, charges Irineo Serio Moreno, age 34, of Minneapolis; Ryan Timothy Solon, age 34, of Eden Prairie; Christopher David Schumacher, age 35, of Bloomington; Shawn Andrew Withrow, age 38, of Shakopee; Jeremy Allen Anderson, age 38, of Circle Pines; Corey William Johns, age 27, of Mounds View; Arthur Eugene Johns, age 29, of New Brighton; and Matthew Ryan Waste, age 27, of Carnelian Bay, California; with one count of conspiracy to distribute marijuana. The indictment was unsealed on March 8, 2013, following the defendants’ initial appearance in federal court.
The indictment alleges that from January 2009 through December 20, 2012, the defendants conspired with each other and others to distribute 1,000 or more kilograms of marijuana.
If convicted, the defendants face a potential maximum penalty of life in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the United States Drug Enforcement Administration, the West Metro Drug Task Force, the West Hennepin Public Safety Department, the Medina Police Department, the Orono Police Department, the Mound Police Department, the Hennepin County Sheriff’s Office, and the Southwest Hennepin Drug Task Force. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.
During the investigation, authorities have seized numerous items including pickup trucks, jet skis, trailers, vehicles, motorcycles, and more than $200,000 in cash. The U.S. is seeking forfeiture of all of these items.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 Charged for Stealing Prosthetics from the U of M, Selling Them OnlineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 52-year-old Coon Rapids man was charged with allegedly stealing prosthetics and related supplies from the University of Minnesota Medical Center-Fairview and selling them online. Peter Stasica was charged via an Information with one count of wire fraud.
Allegedly, from February to August 2011, Stasica, who was then Prosthetics manager for Fairview’s Orthotics and Prosthetics Department, began removing prosthetics and prosthetic-related supplies without authorization to sell on eBay. In addition, Stasica allegedly solicited under false pretenses from several patients prosthetics they were not using. Stasica did not disclose to those patients that he intended to sell their prosthetics.
If convicted, Stasica 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. It is being prosecuted by Assistant United States Attorney David M. Genrich.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.St. Paul Felon Sentenced for Possessing A .40-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 37-year-old St. Paul felon was sentenced for possessing a .40-caliber pistol. United States District Court Judge Richard H. Kyle sentenced Wendell Terrell Brown to 180 months in prison on one count of being an armed career criminal in possession of a firearm. Brown was indicted on June 18, 2012, and pleaded guilty on October 12, 2012.
In his plea agreement, Brown admitted that on May 5, 2012, he possessed the pistol while riding as a passenger in a vehicle stopped by authorities in St. Paul. Because he is a felon, Brown is prohibited under federal law from possessing a firearm at any time. Brown’s prior convictions include possession of a short-barreled shotgun (Ramsey County, 1998) and felon in possession of a firearm (Ramsey County, 2002). In addition, Brown was convicted in Hennepin County for terroristic threats (1998), Washington County for fourth-degree sale of a controlled substance (2010), and in St. Croix County, Wisconsin, for possession with intent to distribute marijuana (2010).
Since at least three of Brown’s past felony convictions were for crimes of violence or serious drug crimes, his sentence in the federal current case was subject to the Armed Career Criminal Act, which mandates a minimum of 15 years in federal prison. Because the federal criminal system does not have parole, he will serve virtually his entire prison sentence behind bars.
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 Jeffrey S. Paulsen.Three Sentenced for Conspiring to Distribute CocaineRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 26-year-old Robbinsdale man was sentenced for conspiring to distribute approximately 249 grams of cocaine. United States District Court Judge Susan Richard Nelson sentenced Brian Funtaneous Mack to 51 months in prison on one count of conspiracy to possess with intent to distribute cocaine. He was indicted on July 23, 2012, along with McCelendon Miller, age 26, and Kelly Suzette Chase, age 28, both of Burnsville.
On March 4, 2013, Judge Nelson sentenced Miller to 52 months in federal prison and Chase to a probationary sentence each on one count of conspiracy. He pleaded guilty on September 28, 2012. In his plea agreement, Miller admitted his role in the conspiracy. Chase and Mack pleaded guilty on September 26, 2012.
In their plea agreements, the three defendants admitted that from January 2012 through February 9, 2012, they conspired with each other and others to possess with intent to distribute cocaine. Miller made arrangements to obtain cocaine from a source in Chicago, and after Miller’s arrest, his girlfriend, Chase, obtained the cocaine from Mack. Miller also directed Chase to store the cocaine in their Burnsville apartment. On February 9, 2012, during the execution of a search warrant at that apartment, officers seized 249 grams of cocaine, along with a firearm, in a safe.
This case was the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the FBI and includes the Minneapolis Police Department. The mission of the task force is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. This case was prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 29-year-old registered sex offender from Woodland Township in central Minnesota was sentenced for possession of child pornography. United States District Court Judge Patrick J. Schiltz sentenced Jeremy Lee Klepperich to 160 months in prison on one count of possession of child pornography. Klepperich was charged on July 31, 2012, and pleaded guilty on October 2, 2012. Because the federal system does not have parole, Klepperich will serve virtually his entire prison sentence behind bars.
In his plea agreement, Klepperich admitted that on June 6, 2012, he possessed one or more matters containing visual depictions of a minor engaged in sexually explicit conduct. Klepperich owned a computer thumb drive containing approximately 4,270 images and 56 videos of child pornography.
In 2011, Klepperich pleaded guilty in state court in Wright County on one count of possession of pornography by a sex offender. The sentence in that case mandated that Klepperich, whose prison term was stayed, refrain from possessing any drugs, drug paraphernalia, pornography, or other sexually explicit material. On two different occasions (April 27, 2011 and June 7, 2012), Klepperich was arrested by local law enforcement for violating the terms of his 2011 stay of sentence. An unnamed individual informed authorities of Klepperich’s thumb drive among other digital media, which contained child pornography. Klepperich’s criminal history includes a 1997 McLeod County, Minnesota, conviction for sexual penetration of a minor male he was babysitting and a 2009 conviction in Hennepin County for failure to register as a predatory offender.
This case was the result of an investigation by the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. Assistance was provided by the Minnesota Department of Corrections, the Hutchinson Police Department, and the Wright County Sheriff’s Office, which is an affiliate of the Minnesota Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.Possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”New Ulm Felon Indicted for Possessing Four FirearmsRead the Press Release
MINNEAPOLIS—Earlier this week in federal court in St. Paul, a 48-year-old felon from New Ulm was indicted for possessing four firearms. On March 4, 2013, Buck Otto White was charged with one count of being felon in possession of a firearm.
The indictment alleges that on February 14, 2013, White possessed a 10-gauge shotgun, a .22-caliber rifle, a 12-gauge shotgun, and a 7.62-caliber rifle. Because he is a felon, White, also known as Timothy Joseph Hoffman, is prohibited under federal law from possessing firearms or ammunition at any time. His prior convictions include burglary in the second degree (Hennepin County in 1984), attempted burglary in the first degree (Anoka County in 1991), burglary in the second degree (Kanabec County in 1995), assault in the fourth degree (Anoka County in 1994), and attempted violation in the controlled substance law in the first degree (Hennepin County in 2006). Because these convictions constituted crimes of violence or drug trafficking, White is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm and/or ammunition.This case is the result of an investigation by the Nicollet County Sheriff’s Office, the New Ulm Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Three Federal Detainees Indicted for Assaulting Two Correctional OfficersRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, three federal detainees were indicted for assaulting two correctional officers at the Sherburne County Jail. Ira Lee Goodwin, age 26, Michael Scott Luedtke, age 25, and Edward McCabe Robinson, age 28, were specifically charged with one count of conspiracy to assault persons assisting federal law enforcement officers and two counts of assault upon a person assisting federal law enforcement officers.
The indictment alleges that on February 8, 2013, the defendants conspired with each other to use dangerous and deadly weapons to inflict bodily injury upon two correction officers employed at the Sherburne County Sheriff’s Office. The defendants allegedly used a chair and a can of pepper spray to commit the assault. The officers sustained numerous injuries, one of them suffering a concussion. In performing their duties, the correction officers were assisting deputy United States Marshals.
Goodwin, an admitted member of the Native Mob street gang, was being detained in the Sherburne County Jail pending federal court sentencing, after earlier pleading guilty to charges related to the federal RICO trial now underway for several other members of that gang. Luedtke was being detained pending prison assignment after being sentenced to nearly 25 years in federal prison for committing an armed robbery. Robinson was being held while being tried in federal court on charges connected to an arson and murder on the Red Lake Indian Reservation. All three remain in custody in the Sherburne County Jail.
If convicted, the defendants face a potential maximum penalty of 20 years in federal prison on each assault charge and five years on the conspiracy charge. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Sherburne County Sheriff’s Office and the U.S. Marshals Service. 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.
St. Cloud Career Criminal Sentenced for Possessing .22-caliber RifleRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old career criminal from St. Cloud was sentenced for possessing a .22-caliber rifle. United States District Court Judge Patrick J. Schiltz sentenced Shawn Allen Roering to 204 months in prison on one count of being a felon in possession of a firearm. Roering was indicted on April 3, 2012, and pleaded guilty on August 15, 2012.
In his plea agreement, Roering admitted that on August 18, 2011, he possessed the semi-automatic rifle and attempted to sell it. The barrel of the rifle was sawed-off, was less than 12 inches in length, and had an obliterated serial number. Police learned that the rifle had been reported stolen.
Because he is a felon, Roering, also known as Shrek, is prohibited under federal law from possessing firearms or ammunition at any time. His prior convictions include aiding and abetting simple robbery in Wright County (2005), fleeing a police officer in a moving vehicle in Morrison County (2010), and fourth-degree sale of a controlled substance in Benton County (2010). Since at least three of Roering’s past felony convictions were for crimes of violence or serious drug crimes, his sentence in the current case was subject to the Armed Career Criminal Act, which mandates a minimum of 15 years in federal prison.
This case was the result of an investigation by the Central Minnesota Drug and Gang Task Force, the Minnesota Bureau of Criminal Apprehension, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Two Minneapolis Women Sentenced for Stealing More Than $1 Million from the ING CompanyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, two Minneapolis women were sentenced for stealing more than $1 million from the ING life insurance company. United States District Court Judge Susan Richard Nelson sentenced Angela Patrice Madison, age 42, to 35 months in federal prison on one count of aiding and abetting mail fraud; and Tracy Dione Jackson, age 42, was sentenced to 27 months in federal prison on the same charge. Madison also was ordered to pay $1,633,301 in restitution to ING, while Jackson was ordered to pay $1,112,717 to the company. Both women were charged on July 26, 2012.
In her plea agreement, which was filed on September 27, 2012, Madison admitted that from 2003 through March 6, 2012, she worked as a policy plan and service coordinator for ING. In that capacity, she handled, among other things, requests from ING clients to obtain loans and “surrender”—that is, cash in—their life insurance policies. Madison used ING’s computer system to generate false “surrenders” in the names of various individuals, including Jackson. The checks issued as a result of those surrenders were mailed to Jackson at various addresses across the state or intercepted by Madison and given to Jackson. Jackson then cashed the checks and split the proceeds with Madison. Through this scheme, the women stole approximately $1,633,301 from ING, the result of 196 fraudulent checks. Jackson pleaded guilty on August 28, 2012.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Timothy C. Rank.Former Eden Prairie Resident Sentenced for Role in $8.9 Million Mortgage FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 28-year-old North Carolina woman was sentenced for her role in a scheme that defrauded mortgage lenders out of approximately $8.9 million. United States District Court Judge Susan Richard Nelson sentenced Ashley Elizabeth Prasil, formerly of Eden Prairie, to three years of probation and ordered her to perform 150 hours of community service on one count of conspiracy to commit wire fraud. Prasil was also ordered to pay more than $2.2 million in restitution to the lenders victimized through the scheme. Prasil was charged via Information on April 21, 2011, and pleaded guilty on May 19, 2011.
Prasil admitted that from December 18, 2006, through December of 2007, she conspired with others to defraud mortgage lenders who provided mortgages at the Cloud 9 Sky Flats (“Cloud 9”), a Minnetonka condominium development. The scheme involved finding buyers to apply for mortgage loans to purchase units in the development, with each buyer receiving a kickback of approximately 30 percent of the reported purchase price. The loan applications and forms submitted to the lenders did not disclose these kickbacks, resulting in buyers and others secretly getting a portion of the loan amounts back after closing. The kickbacks were returned to the buyers through an account controlled by Prasil’s co-defendant Sheri Delich, after a portion had been skimmed off for co-conspirators.
On February 15, 2013, Delich, age 47, of Apple Valley, was ordered to serve five years of probation and six months of home confinement on one count of conspiracy to commit mortgage fraud and one count of money laundering. Judge Nelson also sentenced former realtor My Dinh Lam, age 32, of Minneapolis, to three years of probation on one count of conspiracy to commit wire fraud for his role in finding buyers for the program.
More than 40 Cloud 9 units were sold through the scheme, and more than 80 percent of the loans have since defaulted.
Under the sentencing guidelines, Prasil could have been sentenced to more than two years in prison. The Court noted, however, that Prasil had provided assistance to the government and that her sentence was being reduced because of her cooperation in the investigation.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Robert M. Lewis.Federal Jury Finds Minnesota Man Guilty of Conspiring to Distribute Controlled SubstancesRead the Press Release
MINNEAPOLIS— On Friday, in federal court, a jury found a Twin Cities’ man guilty of conspiring to distribute heroin, cocaine, and other controlled substances. Following a four-day trial, the jury convicted Eric Michelle Hunter, age 40, of Bloomington. He was found guilty of one count of conspiracy to distribute controlled substances. In addition Hunter was convicted of five counts of distribution of controlled substances, one count of possession of controlled substances with intent to distribute, two counts of using and carrying firearms during and in relation to drug-trafficking crimes, two counts of being a felon in possession of a firearm, and one count of attempted witness tampering. Hunter was charged on December 10, 2012, in a superseding indictment.
The evidence presented at trial proved that from September 14, 2011, through July 24, 2012, the defendant conspired with others to distribute controlled substances, primarily heroin. On five occasions, Hunter aided and abetted the distribution of controlled substances, including heroin and benzylpiperazine, commonly known as BZP. He also conspired to distribute numerous other controlled substances, including two other designer drugs with street names of “Foxy” and “Ivory Wave.”Moreover, on May 2, 2012, Hunter aided and abetted using and carrying a .357-caliber, semi-automatic pistol, and on May 22, 2012, he aided and abetted using and carrying an AA Arms, 9 millimeter machine gun. Because Hunter is a convicted felon, he is prohibited under federal law from possessing firearms at any time. He was convicted in Mississippi of grand larceny in 1990, possession of cocaine in 1994, felon in possession of a deadly weapon in 1994, and intimidation and assault on a law enforcement officer in 1995. In addition, he was convicted in federal court in the District of Minnesota in 1998 for possession with intent to distribute crack cocaine.
On October 9, 2012, co-defendant Rikki Lee Gilow, age 20, also of Bloomington, pleaded guilty to one count of conspiracy. In her plea agreement, Gilow admitted conspiring with Hunter and Jerry Anthony Harvey to distribute controlled substances. In addition, Gilow admitted assisting Hunter by selling two firearms to a government agent in connection with two separate drug transactions. Harvey is currently pending trial on the conspiracy charge and one count of aiding and abetting the distribution of heroin.
For his crime, the defendant faces a potential maximum penalty of life in prison on the conspiracy charge, 30 years on each of the distribution charges, and life for the possession with intent to distribute heroin charge. Hunter also faces a potential maximum penalty of life in prison on the firearm charges, a potential maximum penalty of ten years on each charge of being a felon in possession, and a potential maximum penalty of 20 years on the attempted witness tampering charge. United States District Court Judge Ann D. Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dakota County Drug Task Force. It was prosecuted by Assistant U.S. Attorneys Thomas M. Hollenhorst and Julie E. Allyn.Excelsior Coin Dealer Pleads Guilty to Defrauding Customers and Investors Out of $2.7 MillionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 53-year-old Excelsior coin dealer pleaded guilty to devising and executing a scheme to defraud customers and investors out of $2.7 million. David Laurence Marion pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of money laundering. Marion, who was indicted on November 14, 2012, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Marion admitted that he owned International Rarities Corporation (“IRC”), a business that bought, sold, and traded gold coins and precious metals, among other things. Marion directed his sales staff to “cold call” people from “lead” sheets in an attempt to get them to buy, sell, or trade coins and precious metals.
Marion also admitted that between December 2010 and August 2011, IRC received over $2 million in coins, precious metals, and money from customers who intended to purchase or exchange coins and precious metals. In August 2011, IRC purportedly had over $2 million in unfulfilled customer orders. When customers inquired about the status of their orders, Marion admitted that he and the IRC sales staff ignored them, falsely indicated that their orders were being processed, or told them that their money, coins, and precious metals could not be returned because they were not available. Meanwhile, Marion used the customers’ money, coins, and precious metals for gambling and his lavish lifestyle or to pay commissions and salaries, fulfill other customer orders, or to support his family. Customers lost approximately $1.7 million in money, coins, and precious metals as a result of this scheme.
In addition, Marion was the president of International Rarities Holdings (“IRH”), and in that capacity, he directed his sales staff to sell securities in the form of ownership shares in the company. However, at the time, Marion was not registered with the Securities and Exchange Commission (“SEC”) as a broker or dealer, nor was he associated with a registered SEC broker or dealer. In fact, in April 2009, the SEC rejected Marion’s attempt to register the IRH offering as a security yet, from at least November 2008 through July 2009, Marion and his sales staff raised approximately $1 million from at least 26 investors who believed they were purchasing ownership shares in IRH. Marion admittedly used approximately $200,000 of those investor funds for his own personal use.
For his crimes, Marion faces a potential maximum penalty of 20 years in federal prison for conspiracy and ten years for money laundering. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Karen B. Schommer.
The U.S. Attorney’s Office wants to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.Fridley Felon Indicted for Possessing AmmunitionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 22-year-old felon from Fridley was indicted for possessing 9-millimeter ammunition. Raphael Eric Matthews was charged with one count of being a felon in possession of ammunition.
The indictment alleges that on January 31, 2013, Matthews possessed the ammunition. Matthews was a passenger in a vehicle stopped for a traffic violation, and the ammunition was found on his person. Because he is a felon, Matthews is prohibited under federal law from possessing firearms or ammunition at any time. Matthews’s prior Hennepin County convictions include aggravated robbery (2007) and simple robbery (2012).
If convicted, Matthews faces a potential maximum penalty of ten 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 Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.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 Minnesota Men Plead Guilty for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a Minnesota man pleaded guilty for his role in a large, multi-state identity theft ring. Jerome Davis, Jr., age 44, pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Davis, who was indicted along with four others on November 14, 2012, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Davis admitted that from 2010 through 2011, he was part of a conspiracy to commit bank fraud. For his part, Davis recruited individuals to conduct fraudulent transactions at financial institutions and retail establishments. He provided the recruited individuals with fraudulent identification documents and counterfeit checks that Davis received from another member of the conspiracy. Davis also drove individuals to retail stores where they conducted the fraudulent transactions.
According to the indictment to which Davis pled guilty, members of the conspiracy obtained victims’ personal information from various sources, including mail theft, vehicle break-ins, burglaries and from individuals who stole the information from their places of employment. The victim information was then used to create false identification documents, such as driver’s licenses and identification cards, along with counterfeit checks. The counterfeit checks were used to purchase expensive items and gift cards at retail stores. The items were later returned for cash, which was divided among those involved in the criminal activity.
The victim information was also used to open bank accounts and access the existing bank accounts of others. As part of this scheme, co-conspirators deposited counterfeit checks into the accounts of unknowing individuals, only to withdraw 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 their next victim.
For his part, Davis has agreed that he is responsible for approximately $170,389 in fraudulent transactions.
Yesterday, co-defendant Jemall Ronta Williams, age 38, also pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. In his plea agreement, Williams admitted that he joined the conspiracy in 2009, and obtained victim information from a co-conspirator who worked at Wells Fargo. Williams also admitted to providing the stolen information to others who used it to create false and fictitious identification documents to pass counterfeit checks. In addition, Williams admitted recruiting individuals to pass counterfeit checks. Williams admitted that he is responsible for approximately $40,000 in fraudulent transactions.
For their crimes, Davis and Williams each face a maximum potential penalty of 30 years in prison for conspiracy to commit bank fraud and a mandatory minimum consecutive penalty of two years in prison for identity theft. Judge Magnuson will determine their sentences at future hearings, not yet scheduled.
Trial is scheduled for April 1, 2013, for the three others who were indicted with Davis and Williams. In September of 2012 following a jury trial, four men were convicted for their roles in this identity theft ring.
Twenty-four other co-conspirators have already entered guilty pleas and are also awaiting 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. Attorney Karen B. Schommer.
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 Coon Rapids Man of Shipping Firearms to LiberiaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a jury found a 38-year-old Coon Rapids man guilty of transporting firearms to his home country of Liberia. McHarding Degan Galimah, who was indicted on August 22, 2012, was specifically convicted of one count of smuggling firearms from the United States to Liberia.
The evidence presented at trial showed that Galimah purchased 12 firearms from a federally licensed firearms dealer, including seven hi-point, 9-millimeters handguns. In November 2010 and July 2011, he exported those weapons to Liberia and made several trips to that country himself to take possession of the firearms to resell for a profit. At no time did he possess a license to transport the firearms, as required by law. Also, federal regulations prohibit any firearms from being exported to Liberia.
For his crime, Galimah faces a potential maximum penalty of ten years in federal prison. U.S. District Court Judge Ann D. Montgomery will determine his sentence at a future hearing, yet to be scheduled.This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.
Woman Sentenced for Theft of Public Money from FEMARead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 30-year-old woman was sentenced for theft of public money from the Federal Emergency Management Agency (“FEMA”). United States District Court Judge Donovan W. Frank sentenced Vianca McCarter, of Kenner, Louisiana, to five years of probation on one count of theft of public money. In addition, McCarter mustl serve 100 hours of community service and pay $33,502 in restitution. McCarter was indicted on October 15, 2012, and pleaded guilty on October 30, 2012.
In her plea agreement, McCarter admitted that on September 12, 2005, she falsely represented to FEMA that she resided in New Orleans when Hurricane Katrina hit the Gulf Coast. She also falsely claimed that her residence and personal property was damaged by the disaster, and that she needed emergency rental assistance benefits. However, McCarter was residing in Minnesota when Hurricane Katrina hit on August 29, 2005. In fact, McCarter lived in housing subsidized by the Minnesota Metropolitan Council from October 2004 through November 2009.
Based on McCarter’s fraudulent application, from September 18, 2005, through October 25, 2007, FEMA awarded her a total of $34,102 in disaster assistance benefits to which she was not entitled because she did not reside in the area affected by Hurricane Katrina.This case was the result of an investigation by the U.S. Department of Housing and Urban Development, with cooperation of the Justice Department’s Hurricane Katrina Fraud Task Force. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.