District of Minnesota

MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, pleaded guilty to stealing more than $23,000 in Social Security benefits. Nefertiti Randall specifically pleaded guilty to one count of theft of government money or property. Randall, who was indicted on January 22, 2013, entered her plea before United States District Court Judge John R. Tunheim.

In her plea agreement, Randall admitted that from June 12, 2009, through April 2012, she stole $23,012 from the Social Security Administration (“SSA”). The funds, which were automatically deposited into a bank account accessible to both Randall and her mother, represented benefits intended solely for Randall’s mother. Her mother died in June of 2009, and in August of 2009, Randall began serving an unrelated, multi-year, identity-theft sentence at the Federal Correctional facility in Waseca. According to the indictment, Randall nonetheless continued to access her mother’s social security benefits until spring of 2012.

For her crime, Randall faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the SSA-Office of Inspector General, with cooperation from the U.S. Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.

 

 

MINNEAPOLIS—Recently in federal court, a 36-year-old Duluth felon was indicted for possessing a nine-millimeter pistol and a .357-caliber revolver. On April 22, 2013, Ronald Paris Riles was specifically charged with one count of being a felon in possession of a firearm.

The indictment alleges that on February 6, 2013, Riles possessed the two firearms. Because he is a felon, Riles is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Illinois for first-degree murder (1993) as well as manufacturing and delivering cannabis (2007).

If convicted of the federal charge now levied against him, Riles faces a potential maximum penalty of ten years in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Duluth Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Recently in federal court, two St. Paul men were indicted for possessing with intent to distribute more than 500 grams of methamphetamine. On April 22, 2013, Antonio Ceron-Santos, age 40, and Avimael Armenta-Hernandez, age 27, were charged with one count of possession with intent to distribute methamphetamine.

The indictment alleges that on March 28, 2013, the defendants possessed the methamphetamine. According to a law enforcement affidavit filed in the case, the defendants were arrested that day, following an arranged controlled purchase of approximately one pound of methamphetamine at a parking lot in Maplewood. During the execution of a state search warrant at the defendants’ residence, police allegedly seized an additional five pounds of methamphetamine as well as drug ledgers and a scale typically used to weigh illegal narcotics.

If convicted, the defendants face a potential maximum penalty of life in federal prison. Because the federal criminal justice system does not have parole, offenders serve virtually their entire prison sentences behind bars. Any sentences imposed in this case would be determined by a federal district court judge.

This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department, the Minneapolis-St. Paul Airport Police Department, the Minnesota State Patrol, and the county sheriff’s offices for Dakota, Ramsey, Washington and Wright counties. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Recently in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was indicted after being apprehended following six days on the run. On April 22, 2013, Michael Joseph Krzyzaniak, age 64, of Minneapolis, was indicted on one count of escape from custody.

The indictment alleges that on March 30, 2013, and continuing through April 5, 2013, Krzyzaniak was an escapee from the Federal Prison Camp in Duluth. He was serving a 151-month sentence for a 2012 conviction in the District of Minnesota for wire fraud and tax evasion. According to a law enforcement affidavit filed in the current case, Krzyzaniak was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m. On April 5, law enforcement officials apprehended him at a hotel in Burnsville.

If convicted, Krzyzaniak faces a potential maximum penalty of five years in federal prison, which may be tacked onto the sentences he is already serving. All sentences would be determined by a federal district court judge.

This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—U.S. Attorney B. Todd Jones today announced that this week is National Crime Victims’ Rights Week. The theme of this year’s observance, “New Challenges, New Solutions,” honors local champions of crime victims’ rights and celebrates the spirit that will advance the progress these heroes have to date achieved.

Awareness of federal crime victims and the issues they face was greatly heightened in 2004, with the enactment of the Crime Victims’ Right Act (“CVRA”). That act grants federal crime victims certain enforceable rights during criminal proceedings, including the right to be heard in court and the right to receive full and timely restitution as provided by law. Crime victims also have the right to be notified of pertinent court events, such as indictment, trial, and sentencing. In Fiscal Year 2010, U.S. Attorney offices nationwide collectively notified federal crime victims of nearly eight million case events. In the District of Minnesota alone, approximately 212,099 such notices were provided.

The U.S. Attorney’s Office in the District of Minnesota has a dedicated Victim-Witness team. In addition to ensuring compliance with victims’ rights, as set forth in federal statute, team members accompany crime victims to court, make referrals for counseling, and assist in accessing victim compensation funds. Nationally, in Fiscal Year 2010, an estimated 19,000 federal crime victims were accompanied to court and more than 23,000 were referred for victim services.

Another way in which U.S. Attorney offices assist federal crime victims is by recovering the monetary losses incurred by them during the related crime. This is particularly important in cases involving financial fraud, when victims often lose their retirement funds or their children’s college money to a smooth-talking crook. Of course, the government cannot guarantee all losses will be restored, but in Fiscal Year 2011, U.S. Attorney offices nationwide, through their Financial Litigation Units, collected a total of approximately $53 in federal restitution for crime victims. In Fiscal Year 2011, the U.S. Attorney’s Office in the District of Minnesota collected approximately $15.4 million for individual victims, while more than $161,000 was recovered for federal agencies who had been victimized by criminal activity.

Finally, the federal government assists victims of violent crime by paying for related expenses, such as lost wages, counseling, and medical costs. Moreover, that assistance is not provided by tax dollars. Rather, the funds come from the Federal Crime Victims Fund, which is supported through the collection of criminal fines and penalties.

For more information about National Crime Victims’ Rights Week, visit http://ovc.ncjrs.gov/ncvrw/.

 

 

MINNEAPOLIS—Yesterday in federal court, a 47-year-old Shakopee man was charged via an Information with fraudulently using other people’s food stamps. On April 18, 2013, Chin Son Kim was specifically charged with one count of food stamp fraud.

The charging document provided that between November 2010 and July 2012, Kim obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the recipients of those benefits. To that end, Kim waited near a charity facility in St. Paul, as well as at other locations, approaching people from whom he might acquire the SNAP cards.

After garnering a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, Kim would present the card to the grocer, who would swipe it through a food-stamp scanner, routinely noting a transaction of approximately $200. Kim would then receive cash, groceries, or store credit in that amount. Afterwards, he would return the card to its rightful owner, providing that person with cash in the amount of approximately half the transaction total. The loss to the SNAP program because of Kim’s action is estimated to be $29,816.

Each individual who receives SNAP benefits is issued an electronic benefit transfer (“EBT”) card, which contains a monthly allocated benefit amount that can be used at authorized retailers. The United States Department of Agriculture (“USDA”) then reimburses those retailers for the benefit amounts redeemed. Only eligible food items may be acquired with food stamps, and some items, such as alcoholic beverages, tobacco products, and cell phone minutes. Moreover, food stamps may not be redeemed for cash.

If convicted, Kim faces a potential maximum penalty of five years in federal prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the USDA-Office of Inspector General, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 46-year-old woman was sentenced for assaulting another inmate at the Federal Correctional Institute in Waseca, Minnesota. United States District Court Chief Judge Michael J. Davis sentenced Felecia Thomas to 41 months in federal prison on one count of assault with a dangerous weapon. Thomas was indicted on May 15, 2012, and pleaded guilty on January 11, 2013, by offering a “straight plea” and did not enter into a plea agreement.

On June 10, 2011, Thomas, who was then serving time at the correctional facility in Waseca following a 2004 conviction for arson and the use of explosives in the commission of a felony, assaulted an inmate by strangling her with a rope. The rope allegedly had been removed from a laundry bag.

This case was the result of an investigation by the Federal Bureau of Investigation and the U.S. Bureau of Prisons. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.

 

 

MINNEAPOLIS—Yesterday in federal court, a 59-year-old Crystal man was charged with possessing approximately 8,000 images of child pornography. On April 17, 2013, James Richard Darling was charged via an Information with one count of possession of child pornography.

On September 22, 2009, Darling allegedly possessed numerous visual depictions of minors engaged in sexually explicit conduct on his computer.

If convicted, Darling faces a potential maximum penalty of 20 years in federal prison, with a mandatory minimum penalty of ten years. Any sentence would be determined by a federal district court judge.

This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.

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

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

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 61-year-old Rochester woman with defrauding an elderly couple out of more than $840,000. The indictment, which was filed on April 15, 2013, specifically charges Carolyn Jean Cassar with one count of wire fraud. The indictment was unsealed following Cassar’s initial appearance in federal court.

The indictment alleges that from May 2006 through September 2012, Cassar executed a scheme to obtain money through false and fraudulent pretenses. Cassar allegedly induced an elderly couple to provide her with money by falsely representing that she needed the funds to travel to Washington, D.C., to attend to the affairs of her recently deceased daughter. She also falsely represented that she needed money to travel to Italy to, among other things, prosecute a former business agent who had defrauded her. She told the couple she expected to receive money she inherited from her father, which the business agent had stolen, and she would then repay them the funds they loaned to her. To support her false representations, Cassar allegedly provided the victims with airline itineraries for her flights to Italy.

Instead, the indictment alleges that Cassar used the victims’ money to (1) vacation in Europe with her son and others; (2) take design professionals to Italy to study its architecture in preparation for designing a home for her; and (3) pay an architect to draw plans for a villa-style house.

If convicted, Cassar faces a potential maximum penalty of 20 years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation, and the Rochester Police Department. It is being prosecuted by Assistant United States Attorney Kimberly A. Svendsen.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 41-year-old Brooklyn Park man guilty of participating in a large, multi-state, identity theft ring. Following an eight-day trial, the jury convicted Gordon Lamarr Moore of one count of conspiracy to commit bank fraud and two counts of aggravated identity theft. Moore, who fled during trial, was indicted along with four others on November 14, 2012. He remains a fugitive. If you have any information regarding Moore’s whereabouts, contact the United States Marshals Service at (612) 664-5900 or [email protected].

According to the evidence presented at trial, members of the conspiracy obtained the personal information of other people through mail theft, vehicle break-ins, and burglaries, as well as from co-conspirators who stole the information from their places of employment. That information was then used to create false identification documents, such as driver’s licenses and identification cards, along with counterfeit checks. Co-conspirators used the counterfeit checks and fraudulent identification to purchase expensive items and gift cards at retail stores. They later returned the items for cash, which was divided among those involved in the criminal activity. Co-conspirators also deposited counterfeit checks into the bank accounts of unknowing individuals, only to withdraw the funds from those same accounts a short time later. To avoid detection, co-conspirators only accessed each bank account a few times before moving on to another.

Earlier this month, two co-defendants, Shanell Collette Brewer and Samantha Catrina House, pleaded guilty to participating in the scheme. In February 2013, two others, Jerome Davis, Jr., and Jemall Ronta Williams, also pleaded guilty to the same crime.

The newly convicted defendants face a maximum potential penalty of 30 years in federal prison for conspiracy to commit bank fraud and a mandatory minimum consecutive penalty of two years in prison on each count of identity theft. U.S. District Court Judge Paul A. Magnuson will determine their actual sentences at a future hearing, not yet scheduled.

In a related case, following a jury trial in September 2012, four other men were convicted of crimes connected to this same identity theft ring. They now await sentencing. Twenty-four additional co-conspirators have entered guilty pleas for their participation in the ring. They too await sentencing.

These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They are being prosecuted by Assistant U.S. Attorneys Karen B. Schommer and Michelle E. Jones.

The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.

The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.

For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.

For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.

 

 

MINNEAPOLIS—Late yesterday in federal court, a jury found a 29-year-old man guilty of conspiring to distribute approximately 450 grams of heroin. The jury convicted Jose Nunez-Medina, a Mexican national, of one count of conspiracy to distribute heroin and one count of possession with intent to distribute heroin. He was indicted, along with Sarahi Diaz-Estrada, age 23, also a Mexican national, on September 11, 2012.

Trial evidence proved that in August 2012, Nunez-Medina conspired with others to distribute 100 or more grams of heroin. It also proved that on August 11, 2012, Nunez-Medina possessed with intent to distribute 100 or more grams of heroin.

On April 8, 2013, co-defendant Diaz-Estrada pleaded guilty to one count of possession with intent to distribute heroin. In her plea agreement, Diaz-Estrada admitted that in exchange for money, she agreed to drive Nunez-Medina from Indiana to Michigan for the purpose of distributing heroin. But instead, they drove to Minnesota. Diaz-Estrada also admitted that she possessed with intent to distribute 450 grams of heroin.

A law enforcement affidavit filed in the case provided that on August 11, 2012, the Crystal Police Department received information from the Indianapolis Metro Police Department concerning the possible abduction of Diaz-Estrada from her Indiana residence. She was believed to be kept against her will at a Crystal motel. Police proceeded to the motel, determined Diaz-Estrada was there, and knocked on her door.

Both Diaz-Estrada and Nunez-Medina were in the motel room. And after speaking with them, the police obtained and executed a state search warrant for the room as well as for Diaz-Estrada’s Jeep. They found approximately 450 grams of heroin, a scale, balloons, and bags. Both defendants were then arrested on drug-related charges.

For their crimes, the defendants face a potential maximum penalty of 40 years in federal prison on each count. United States District Court Chief Judge Michael J. Davis will determine their sentences at future hearings, yet to be scheduled.

This case was the result of an investigation by the Crystal Police Department and the U.S. Drug Enforcement Administration, with cooperation from the Indianapolis Metro Police Department. It was prosecuted by Assistant U.S. Attorney Richard Newberry.

 

 

MINNEAPOLIS—Recently in federal court, a 40-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. On April 15, 2013, Benito Blanco-Correa was charged with one count of illegal re-entry after deportation.

The indictment alleges that on March 13, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Mexico on three occasions, the last being in 2010, following a 2009 conviction in the District of Minnesota for conspiracy to distribute and possession with intent to distribute heroin. On March 13, Blanco-Correa was identified as an illegal alien while in the Hennepin County jail, where he was being held after a narcotics’ arrest.

The identification was made though the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). The goal of CAP is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.

If convicted of the federal charges on levied against him, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.

To learn more about the CAP, visit www.ice.gov/criminal-alien-program/

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 26-year-old woman was sentenced for her role in the robbery of the Citizens Bank in Hutchinson, Minnesota. United States District Court Judge David S. Doty sentenced Erica Lea Reeves, no known residence, to 19 months in federal prison on one count of aiding and abetting bank robbery. Reeves was indicted along with a co-defendant on August 22, 2012. She pleaded guilty on November 7, 2012.

In her plea agreement, Reeves admitted that on July 17, 2012, she and her co-defendant stole $5,770 from Citizens Bank, located at 1390 Highway 15 South, in Hutchinson. According to a law enforcement affidavit filed in the case, Reeves’ co-defendant, Eric Andrew Ebbers, age 25, no known address, presented a bank teller with a note demanding money and warning that he had a gun. After taking the money provided, Ebbers ran to a waiting car driven by Reeves. Police tried to stop the vehicle, but the car sped away. With officers in pursuit, the car exceeded 100 mph, wove through traffic, and avoided a police roadblock. When the car was finally disabled, Reeves was arrested, while Ebbers fled on foot into a cornfield. He was apprehended the following day.

On February 14, 2013, Ebbers was sentenced to 71 months in federal prison on one count of aiding and abetting bank robbery. He pleaded guilty on September 27, 2012. In his plea agreement, Ebbers also admitted robbing the Alliance Bank in Lake City, Minnesota, and the Key Bank in Gresham, Oregon. In both instances, Ebbers presented tellers with a note demanding money and warning that he had a gun.

This case was the result of an investigation by the Federal Bureau of Investigation and the McLeod County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

 

 

MINNEAPOLIS—Earlier today in federal court, a 38-year-old St. Paul man was sentenced for his role in a large marijuana distribution ring. United States District Court Judge Patrick J. Schiltz sentenced Cesar Sevilla-Acosta to 135 months in federal prison on one count of conspiracy to distribute marijuana. Sevilla-Acosta and 27 co-defendants were charged on October 18, 2010, in a superseding indictment. He was convicted on November 28, 2012, following a three-day trial. Because the federal judicial system does not have parole, Sevilla-Acosta will spend virtually his entire prison sentence behind bars.

Following today’s sentencing, Dan Moren, Assistant Special Agent in Charge of the U.S. Drug Enforcement Administration’s Minneapolis-St. Paul Field Office, said, “The sentencing of Mr. Sevilla-Acosta brings closure to a significant investigation targeting a Mexican-based criminal organization. The citizens of Minnesota should be proud of the perseverance and determination put forth by the case agents, prosecutors, and law enforcement partners in dismantling this criminal drug organization.”

Trial evidence proved that from 2006 through September 23, 2010, Sevilla-Acosta conspired with others to distribute 1,000 kilograms or more of marijuana throughout Minnesota and Colorado. The drug ring was responsible for the distribution of approximately 25,000 kilograms of marijuana in Minnesota from 2006 to September 2010. The proceeds of those sales totaled millions of dollars.

Judge Schiltz previously sentenced 23 of Sevilla-Acosta’s co-defendants on one count of conspiracy to distribute marijuana: On June 5, 2012, Sergio Abraham Olivas Padilla, also known as Juan Alonzo-Perez, was sentenced to 60 months in prison on one count of conspiracy to distribute marijuana. He pleaded guilty on September 20, 2011.

On March 5, 2012, Jose Israel Diaz was sentenced to 18 months in prison. He pleaded guilty on May 10, 2011.

On March 2, 2012, Ricardo Diaz was sentenced to 70 months in prison. He pleaded guilty on May 13, 2011.

On December 22, 2011, Stephanie Rachel Raduenz was sentenced to three years of probation. She pleaded guilty on December 20, 2010.

On December 21, 2011, Jorge Luis Medrano was sentenced to 15 months in prison. He pleaded guilty on December 3, 2010.

On December 19, 2011, Jose Cruz Alvarez Jaime, also known as Carlos Munoz-Perez, was sentenced to 75 months in prison and Tyler Louis Kyte was sentenced to 84 months in prison. Jaime pleaded guilty on May 10, 2011, and Kyte pleaded guilty on December 7, 2010.

On December 14, 2011, Michael Asencion Moreno was sentenced to 108 months in prison. He pleaded guilty on January 11, 2011.

On November 29, 2011, Federico Llamas, III, was sentenced to 78 months in prison. He pleaded guilty on December 16, 2010.

On November 1, 2011, Gustavo Moreno was sentenced to 18 months in prison. He pleaded guilty on May 13, 2011.

On October 28, 2011, Jorge Luis Villar-Meras was also sentenced to 18 months in prison. He pleaded guilty on May 4, 2012.

On October 5, 2011, Yolanda Jean Moreno was sentenced to 12 months and 1 day in prison. She pleaded guilty on November 22, 2010.

On September 27, 2011, Francisco Javier Carreon-Garcia was sentenced to 121 months in prison. He pleaded guilty on January 13, 2011.

On August 30, 2011, Greg Bryan Ortega was sentenced to 24 months in prison. He pleaded guilty on December 13, 2010.

On August 29, 2011, Sabrina Jean Lafountaine was sentenced to three years of probation and Alan Lee Lorentz was sentenced to six months in prison. Lafountaine and Lorentz pleaded guilty on December 6, 2010.

On August 11, 2011, Alonso Rascon-Olivas was sentenced to 68 months in prison. He pleaded guilty on November 29, 2010.

On August 5, 2011, Joel Auren Zellmann was sentenced to three years of probation. He pleaded guilty on November 12, 2010.

On July 28, 2011, Bruce John Johnson was sentenced to 43 months in prison. He pleaded guilty on November 17, 2010.

On July 26, 2011, Amy Marie Mayberry was sentenced to 12 months in prison. She pleaded guilty on December 20, 2010.

On July 8, 2011, Stefanie Donna Kalenberg was sentenced to 10 months in prison. She also pleaded guilty on December 20, 2010.

On June 30, 2011, Charles Joseph Kalenberg was sentenced also sentenced to 10 months in prison. He pleaded guilty on November 8, 2010.

On June 23, 2011, Alfonso Prado-Galvon was sentenced to 37 months in prison. He pleaded guilty on December 21, 2010.

In addition, Judge Schiltz sentenced Sevilla-Acosta’s four remaining co-defendants on one count of possession with intent to distribute marijuana: On July 27, 2011, Jose Luis Renterra was sentenced to 37 months in prison on one count of possession with intent to distribute marijuana on September 22, 2010. He pleaded guilty on January 13, 2011.

On June 10, 2011, Rogelio E. Obeso-Melchor was sentenced to 30 months in prison on one count of possession with intent to distribute on April 20, 2010. He pleaded guilty on December 21, 2010.

On May 19, 2011, William Robert Laurie was sentenced to 27 months in prison on one count of possession with intent to distribute on August 19, 2009. He pleaded guilty on November 16, 2010.

On April 29, 2011, Patrick Thomas Maykoski was sentenced to 60 months in prison on one count of possession with intent to distribute on February 24, 2010. Maykoski pleaded guilty on October 29, 2010.

This sentencing culminates a significant investigation, dubbed Operation Weed Whacker. This case was the result of an Organized Crime Drug Enforcement Task Force investigation led by the DEA’s Minneapolis—St. Paul District Office, in cooperation with other state and federal law enforcement agencies, including the Bloomington Police Department, the McLeod County Sheriff’s Office, the Sibley County Sheriff’s Office, the Carver County Sheriff’s Office, the Hutchinson Police Department, and the Glencoe Police Department, with assistance provided by the South West Metro Drug Task Force, the DEA’s Denver Office, the Denver Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Dakota County Drug Task Force, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

 

 

MINNEAPOLIS—Earlier today in federal court in Duluth, a jury found a 44-year-old Red Lake man guilty of causing serious bodily injury to a woman after assaulting her while on the Red Lake Indian Reservation. Following a two-day trial, the jury convicted Roderick Arlyn Sayers on one count of assault resulting in serious bodily injury. Sayers was indicted on November 5, 2012.

According to both the evidence presented at trial and the indictment, on November 25, 2011, Sayers assaulted the victim, which resulted in serious bodily injury. The victim, who was Sayers’ girlfriend, had a significant mouth injury and a loose tooth.

For his crime, Sayers faces a potential maximum penalty of ten years in federal prison. United States District Court Judge Richard H. Kyle will determine his sentence at a future hearing, not yet scheduled.

This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Thomas Calhoun-Lopez.

Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.

The U.S. Justice Department is taking steps to increase engagement, coordination and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.

Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered in during their lives than Caucasian women.

 

 

MINNEAPOLIS—Earlier today in federal court, a jury found a 23-year-old inmate guilty of retaliating against another inmate for being a government witness in a drug-trafficking trial. Following a four-day trial, the jury convicted Veronique Zsa zsa Antique Muckle, of Superior, Wisconsin, on one count of federal witness retaliation. Muckle was indicted on September 11, 2012.

According to the indictment and evidence presented at trial, Muckle assaulted Angelique Michelle Vos on August 14, 2012, following Vos’ return to the Sherburne County Jail after serving as a cooperating government witness during a narcotics trial. Muckle, Vos, and more than three dozen others pleaded guilty for their roles in a large-scale drug-trafficking organization that transported prescription pills and heroin from Detroit to the Twin Ports region in Minnesota. In September 2011, the organization was brought down after it was investigated by the Lake Superior Drug and Violent Crime Task Force and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). The investigation itself was commonly referred to as Operation Highlife.

In August 2012, Muckle’s business partner and confidante Lawrence Lalonde Colton chose to go to trial. At the time, Muckle and Vos were held separately in the Sherburne County Jail. Muckle was already sentenced to 52 months in prison for her participation in the original drug conspiracy, and was awaiting placement in the federal prison system. Along with several other co-conspirators, Vos testified on behalf of the federal government in Colton’s drug-trafficking trial on August 14, 2012. When Vos returned from federal court, Muckle ran from a segregated area of the facility and violently attacked Vos. Colton was convicted on August 16, 2012, and later sentenced to 300 months in prison. At trial, Muckle took the stand and claimed the assault was because of a separate dispute between herself and Vos.

For her crime, Muckle faces a potential maximum penalty of 30 years in prison. United States District Court Judge David S. Doty will determine her sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the Sherburne County Sheriff’s Office, the Lake Superior Drug and Violent Crime Task Force, the Duluth Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Allen A. Slaughter and Amber M. Brennan.

 

 

MINNEAPOLIS—As Tax Day approaches, the U.S. Attorney’s Office reminds all Minnesotans that the deadline for filing federal income tax returns is Monday, April 15. To exemplify federal law enforcement’s commitment to pursue those who fail to pay their taxes or otherwise defraud the tax system, the Office noted that federal prosecutors in the District of Minnesota this week charged four individuals with tax-related crimes in three separate cases: On April 9, 2013, Roger Martin Pedley was indicted for evading taxes for tax years 2000-2009, and for knowingly structuring his financial transactions to evade federal reporting requirements. Pedley was charged with four counts of tax evasion, six counts of structuring cash transactions, and two counts of making false statements to a federal agent.

If convicted, Pedley faces a potential maximum penalty of five years in prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney John Docherty.

In another case, charged on April 9, 2013, the former owner of Life Care PCA, a Farmington-based home health care company, was indicted for failing to pay federal income and employment taxes withheld from workers. The indictment charges Daniel Nok Musa with 14 counts of failure to account for and pay over withheld taxes. The indictment was unsealed following Musa’s initial appearance in federal court.

The indictment alleges that beginning in 2002, and for every quarter from at least January 1, 2005, through October 31, 2009, Musa failed to timely pay over to the IRS a total of approximately $180,000 in withheld employee taxes as well as the employer’s share of FICA taxes. From August 1, 2006, through November 1, 2009, Musa was the sole owner and president of Life Care.

If convicted, Musa faces a potential maximum penalty of five years in prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Michael L. Cheever.

In another indictment unsealed earlier this week, two executives of a Minnesota-based multi-level marketing company were charged for failing to file federal tax returns. The indictment, which was filed on April 9, 2013, charges Bradley Collin with one count of conspiracy to defraud the U.S. and three counts of failure to file a tax return. Michael Schlegel was charged with one count of conspiracy, three counts of tax evasion, and three counts of failure to file tax returns. The indictment was unsealed following the defendants’ initial appearance in federal court.

The indictment alleges that from 2002 through 2010, the defendants conspired with each other and others to defraud the U.S. by obstructing the IRS in its lawful collection of income taxes. To that end, Schlegel and Collin allegedly failed to make any payments toward the back taxes, interest and penalties levied against them in 2000, which totaled more than $600,000 and $800,000 respectively. The defendants also purportedly failed to file federal individual tax returns for tax years 2002-2009, pursuing “tax protestor” ideologies.

The indictment states that from 2002 to 2009, Schlegel controlled NatureRich, Inc., a multi-level marketing company that sold natural and health-related products. Like similar companies, NatureRich paid commissions to salespeople based on direct sales and on the sales of downstream salespeople. At various times between 2002 and 2009, Schlegel and Collin reportedly received wages and commission payments from NatureRich that totaled more than $400,000. Schlegel also purportedly caused NatureRich to pay his commissions to a nominee trust called the “Andrew James Living Trust,” from which he then paid his family’s expenses. During that time, Schlegel also operated a painting business, allegedly receiving more than $400,000 in income from painting contracts.

In 2004, the defendants, through the use of nominee entities, allegedly began engaging the “warehouse” banking services of Olympic Business Systems and Century Business Concepts. “Warehouse” banking refers to the use of one or more bank accounts in which the funds of multiple clients are deposited, thereby concealing the true source of the funds.

The indictment alleges that the defendants also filed misleading federal corporate tax returns in the name of NatureRich in an effort to conceal the true extent of their personal interest in and the income derived from NatureRich. In all, the defendants allegedly attempted to conceal at least $3 million in gross income from the IRS, thereby avoiding income taxes on that income and also avoiding having those funds seized for payment of their previous tax debts.

If convicted, the defendants face a potential maximum penalty of five years in prison on the conspiracy count, and one year on each count of failure to file a tax return. In addition, Schlegel faces a potential maximum penalty of five years on each tax evasion count. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and Benjamin F. Langner.

The District of Minnesota has been active in other tax cases. On April 9, 2013, in St. Paul, a Twin Cities-based attorney doing business as Sea Law Office, PLC, was sentenced for failing to report and pay taxes on more than $420,000 in income for tax years 2006 through 2010. United States District Court Judge Richard H. Kyle sentenced Bobby Gordon Okechuku Onyemeh Sea to eight months in prison on one count of filing a false U.S. Individual Income Tax Return. Sea was charged on November 2, 2012, and pleaded guilty on November 26, 2012.

From 2006 through 2012, Sea earned gross receipts for legal services, and in his plea agreement, he admitted failing to report those receipts on his tax returns. He also admittedly used the unreported income for his personal benefit. In addition, Sea admitted that on April 15, 2008, he filed a false 2007 tax return. Specifically, he reported a taxable income of $9,087, and refundable credits of $3,529, thus understating his taxable income by approximately $100,000 and claiming refundable credits that were not earned.

Sea also admitted filing false tax returns for tax years 2006, 2008, 2009, and 2010. As a result, he is admittedly responsible for a total tax loss of at least $80,000 but less than $200,000.

This case was the result of an investigation by the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Timothy C. Rank and Ann M. Anaya.

The District’s efforts to pursue tax dodgers were also enhanced last fall thanks to a U.S. Justice Department directive. In September 2012, the Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorney offices in effectively responding to the grave challenges in stolen identity refund fraud (“SIRF”) cases. Tax Division Directive 144 now allows federal prosecutors to charge by complaint those criminals who are engaged in SIRF crimes. They may also obtain search warrants for the purpose of forfeiture of criminally derived proceeds arising from SIRF crimes, all without prior authorization from the Tax Division. To ensure fair and consistent nationwide enforcement of tax laws, the Tax Division has supervision over virtually all criminal proceedings arising under tax laws. Tax refund fraud, involving the use of stolen identities to steal refunds, has emerged as a fast-growing crime. Strong coordination at all levels of law enforcement is vital to combat these criminals.

The District of Minnesota is prosecuting several SIRF cases. Last month, three individuals pleaded guilty to participating in a conspiracy to file false tax returns to generate inflated refunds. Two of the defendants were licensed tax preparers. In November 2012, two defendants pleaded guilty to participating in a conspiracy to file false tax returns and claim tax refunds using stolen personal information.

For more information about the Tax Division and its enforcement efforts, visit www.justice.gov/tax. The Minnesota U.S. Attorney’s Office wants to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.

 

 

MINNEAPOLIS—Recently in federal court, a 26-year-old man, formerly of St. Paul, was indicted for producing, distributing and possessing child pornography. On April 9, 2013, Douglas Luke Robinette was charged with four counts of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography.

The indictment alleges that on three occasions in 2010, Robinette induced a 14-year-old boy to engage in sexually explicit conduct for the purpose of producing visual depictions of that activity on his cell phone. It also alleges that between July 1 and August 30, 2010, Robinette enticed that same victim to engage in similar conduct for the purpose of producing a video of that activity. In addition, the indictment alleges that on July 12 and July 18, 2010, Robinette distributed child pornography via a computer and on August 30, 2010, possessed child pornography on his computer.

If convicted, Robinette faces a potential maximum penalty of life in prison on each production count, 40 years on each distribution count, and 20 years on the possession count. All sentences would be determined by a federal district court judge.

This case is the result of an investigation by the Rice County Sheriff’s Office, the Minnesota Bureau of Apprehension, and the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.

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

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

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 52-year-old Coon Rapids man pleaded guilty to stealing prosthetics and related supplies from the University of Minnesota Medical Center—Fairview and selling them online. Specifically, Peter Stasica pleaded guilty to one count of wire fraud. Stasica, who was charged on March 8, 2013, entered his plea before United States District Court Judge Ann D. Montgomery.

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

In addition, Stasica admitted he solicited from several patients, under false pretenses, prosthetics they were not using. Stasica did not disclose to those patients that he intended to sell them. During the course of the scheme, approximately 40 buyers purchased more than 60 prosthetics and related supplies from Stasica via eBay. The items had an actual cost to Fairview of approximately $122,928. The eBay sales resulted in a profit of approximately $17,296.

For his crime, Stasica faces a potential maximum penalty of 20 years in prison. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.

 

 

MINNEAPOLIS—Four federal indictments have been filed against a total of ten individuals in connection with illegal poaching and marketing of walleye and other protected fish on the Red Lake and Leech Lake Indian reservations. All ten people were charged with one count of transportation, sale, and purchase of fish taken in violation of the Lacey Act.

The first indictment charges Larry W. Bellefy, age 53, of Bagley; Thomas P. Sumner, age 54, of Red Lake; and Brian W. Holthusen, age 47, also of Red Lake. The second indictment charges Michael D. Brown, age 54, no known address; and Michael J. Nei, age 48, of Bemidji. The third indictment charges Jerry A. Reyes, age 51, of Cass Lake; and Marc L. Lyons, age 61; Frederick W. Tibbetts, age 61; and Alan D. Hemme, age 55, all of Bena. The fourth indictment charges Larry Good, age 58, of Red Lake. All four indictments allege that the defendants knowingly engaged in conduct that involved the sale and purchase of fish with a market value in excess of $350.

The first indictment alleges that between July 2009 and July 2011, Bellefy, Sumner, and Holthusen took fish from Red Lake without the approval of the Red Lake Fisheries Association. The indictment specifically asserts that Sumner and Holthusen obtained the fish and then sold them to Bellefy, who resold them.

The second indictment alleges that between July 2010 and July 2011, Brown and Nei netted fish from Leech Lake for commercial purposes. That indictment specifically states that Brown netted the fish and then sold them to Nei.

The third indictment alleges that between July 2009 and July 2011, Reyes, Lyons, Tibbetts, and Hemme also took fish from several lakes on the Leech Lake Indian Reservation. That indictment specifically claims that Ryes, Lyons and Tibbetts took the fish from the lakes and then sold them to Hemme, who owns a restaurant in Bena.

The fourth indictment alleges that between July 2009 and July 2011, Good took fish from Red Lake without approval of the Red Lake Fisheries Association.

Authorities began investigating these black-market activities in July 2009. During the course of that investigation, officers conducted numerous controlled purchases of illegally obtained fish. They also seized fish during the execution of several search warrants. Authorities estimate the fair market value of the fish illegally obtained through the activity covered by these four indictments to be in the hundreds of thousands of dollars.

If convicted, the defendants face a potential maximum penalty of five years in federal prison on each count. And because the federal justice system does not have parole, a convicted offender will spend virtually his entire sentence behind bars. Any sentence, however, would be determined by a federal district court judge.

These cases are the result of investigations by the U.S. Fish and Wildlife Service, the Minnesota Department of Natural Resources, the Leech Lake Division of Resource Management, and the Red Lake Department of Natural Resources. They are being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 48-year-old Guatemalan national was indicted for entering the United States illegally after being deported as a criminal. Hector Raul Estrada-Garcia was charged with one count of illegal re-entry after deportation.

The indictment alleges that on March 7, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Guatemala in 2000, following a 1997 conviction in the District of Minnesota for distribution of methamphetamine. On March 7 of this year, Estrada-Garcia was identified in Anoka County as an illegal alien with a criminal record by the U.S. Immigration and Customs Enforcement’s (“ICE”) St. Paul Fugitive Operations Team.

If convicted, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS—Earlier today in federal court, a 27-year-old Fridley man was indicted for transporting another to engage in prostitution, pursuant to federal law. Napoleon Long, Jr., was charged with one count of enticing another for interstate travel to engage in prostitution and one count of transportation with intent to engage in prostitution. Federal law prohibits the interstate transportation of individuals for the purpose of prostitution.

The indictment alleges that in October 2011, Long, also known as Nate, persuaded a woman to travel to Colorado for the purpose of engaging in prostitution.

If convicted, Long faces a potential maximum penalty of 20 years in prison. All sentences would be determined by a federal district court judge. This case is the result of an investigation by the Anoka County Sheriff’s Office and United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.

In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.

For more information, visit http://www.ice.gov/human-trafficking/

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

 

 

MINNEAPOLIS— Earlier today in federal court in St. Paul, a former Minnesota Amateur Hockey Association, District 2, treasurer was sentenced for evading his personal income taxes in 2010. United States District Court Judge Richard H. Kyle sentenced Steven Brier to eight months in prison on one count of tax evasion. Brier was charged on December 4, 2012, and pleaded guilty on December 17, 2012.

In his plea agreement, Brier admitted from April 2005 through September 2011, he stole at least $384,000 during his time as treasurer for the Minnesota Amateur Hockey Association, District 2. As treasurer, Brier had signature authority for the District 2 bank accounts and only one signature was required on the checks issued by the Association. Brier acknowledges that he wrote unauthorized checks to himself from District 2’s bank account. The treasurer position was not a paid position, so Brier was only supposed to receive money from the Association for reimbursable expenses paid out-of-pocket. To avoid detection and to make the checks look legitimate, Brier wrote “scheduling” and “playoff expense” in the memo line to make it appear that the checks were reimbursements of expenses he paid out-of-pocket.

Over the years, Brier tried to pay back the amounts he owed before anyone found out. However, the defendant still owes District 2 much of the money that he stole. Brier tried to gamble at various casinos in an attempt to win back the money he owed to the Association.

During the tax year 2010, Brier evaded his personal income taxes by approximately $74,473. Brier also acknowledges that he attempted to evade his personal income taxes by approximately $240,396 during tax years 2007 through 2010. Brier failed to inform his return preparer of the money he took from District 2. Since Brier calculated his business income and expenses for his return preparer, he did not have to submit his business or personal bank statements, which would have shown the deposits from District 2. Brier agrees that the tax loss resulting from his evasion is at least $68,000 for the tax years 2007 through 2010.

This case was the result of an investigation by the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.

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

 

 

MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 36-year-old felon guilty of possessing a nine-millimeter pistol. Following a three-day trial, the jury convicted Christopher Sean Daniels, of St. Paul, on one count of being a felon in possession of a firearm. Daniels was indicted on October 1, 2012.

Evidence presented at trial proved that on September 3, 2012, Daniels possessed a Smith & Wesson, nine-millimeter pistol. Because he is a felon, Daniels is prohibited under federal law from possessing a firearm at any time. Daniels was previously convicted in Illinois in 1995 and 1997 for delivery of a controlled substance. In addition, he was convicted in Hennepin County in 2006 for being a felon in possession and for second-degree assault. And in 2010, he was convicted in Anoka County for fourth-degree assault. Since all of those prior offenses were crimes of violence or major drug crimes, Daniels is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. United States District Court Judge Donovan W. Frank will determine his actual sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and John E. Kokkinen.

 

 

MINNEAPOLIS—Yesterday in federal court in St. Paul, a 52-year-old Eagan man pleaded guilty to participating in a scheme to defraud real estate investors. On April 9, 2013, Tonii Carlos Greene pleaded guilty to one count of transactional money laundering. Greene, who was charged on March 20, 2013, in a superseding indictment, entered his plea before United States District Court Judge Donovan W. Frank.

In his plea agreement, Greene admitted that from early 2007 through at least August of 2008, he devised and participated in a scheme that involved the solicitation of money from investors under false pretenses. In particular, Greene solicited investments in a purported program through which properties were to be bought at a discount, rehabilitated, and either refinanced or sold. Investors were told that their money was a short-term investment loan and would be repaid with profits or interest. Investors were not told that their funds would be used for Greene’s personal use, or that their purported investment returns would be paid from later investor funds. The estimated loss to victims due to Greene’s actions is more than $1 million.

For his crime, Greene faces a potential maximum penalty of ten years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations, and the Minnesota Department of Commerce, with cooperation from the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and William J. Otteson.

This law enforcement action is in part sponsored by the interagency Financial Fraud
Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

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

 

 

MINNEAPOLIS—Yesterday in federal court, a 21-year-old man pleaded guilty to endangering a child while on the Red Lake Indian Reservation. On April 8, 2013, Travis Aaron Rosebear, no known address, pleaded guilty to one count of child endangerment. Rosebear, who was indicted on December 3, 2012, entered his plea before United States District Court Chief Judge Michael J. Davis.

In his plea agreement, Rosebear admitted that sometime between December 31, 2011, and January 3, 2012, he fractured the arm of a 15-month-old girl. Rosebear was the caretaker for the baby and five other children while their parents were periodically away from the residence. Rosebear also admitted carrying the baby by one arm, swinging her down a hallway after becoming frustrated, causing the fracture. In addition, the baby suffered a bruise on the back of her head.

For his crime, Rosebear faces a potential maximum penalty of five years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.

Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.

 

 

MINNEAPOLIS—Earlier today in federal court, a 24-year-old Hastings man pleaded guilty to producing child pornography. Mark Matthew Cortes pleaded guilty to one count of production of child pornography. Cortes, who was indicted on December 3, 2012, entered his plea before United States District Court Judge Ann D. Montgomery.

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

For his crime, Cortes faces a potential maximum penalty of 30 years in prison. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled.

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

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

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

 

 

MINNEAPOLIS—Earlier today in federal court, two Rochester men pleaded guilty to distributing more than 280 grams of crack cocaine. Jimmy Joe Barker, age 26, pleaded guilty to one count of conspiracy to distribute cocaine and crack cocaine, while Quentin Graham, age 27, pleaded guilty to one count of distribution of crack cocaine. Both men were indicted on November 5, 2012, and entered their pleas before United States District Court Judge Joan N. Ericksen.

In his plea agreement, Barker admitted that from April 9, 2010, through April 3, 2012, he conspired with Graham and others to distribute approximately 412.9 grams of crack cocaine and 42 grams of powder cocaine. According to a law enforcement affidavit filed in the case, authorities began investigating Barker in April 2010. They conducted several controlled purchases from him, and during many of those purchases, they observed him in a vehicle that later was determined to be owned by Graham.

While executing a search warrant at Barker’s residence on November 9, 2010, police seized $320 in cash, approximately 31.1 grams of crack cocaine, and approximately 42.3 grams of powder cocaine. Police also searched Graham’s vehicle, which was parked in front of Barker’s residence at the time. From that vehicle, they recovered approximately 124 grams of cocaine.

In his plea agreement, Graham admitted that on April 4, 2012, he traveled with Barker to Rochester Community College for the purpose of delivering narcotics to an individual. Graham specifically carried the bag of narcotics into a building and handed it to the individual, who, in turn, provided money to Barker. The bag contained 124.3 grams of crack cocaine.

For his crime, Graham faces a potential maximum penalty of 40 years in federal prison, with a mandatory minimum penalty of five years. Barker faces a potential maximum penalty of life in prison, with a mandatory minimum penalty of ten years. Judge Ericksen will determine their sentences at future hearings, yet to be scheduled.

This case is the result of an investigation by the South East Minnesota Narcotics and Gang Task Force, the U.S. Drug Enforcement Administration, and the Rochester Police Department. It is being prosecuted by Assistant U.S. Attorneys LeeAnn K. Bell and Surya Saxena.

 

 

MINNEAPOLIS—Yesterday in federal court, a former payroll service provider was sentenced for failing to pay to the Internal Revenue Service (“IRS”) employment taxes received from his clients. On April 4, 2013, United States District Court Judge John R. Tunheim sentenced Mohamed Abdi to time served (approximately three months) on one count of tax evasion. He also was ordered to pay approximately $77,000 in restitution. Abdi was indicted on April 9, 2012, and pleaded guilty on January 3, 2013.

From January 1, 2005, through June 2007, Abdi was the sole owner of Siham Solutions, Inc., which provided payroll services to clients in Minnesota. These services included paying federal income and employment taxes that were withheld from the employees of Siham’s clients. In his plea agreement, Abdi acknowledged that from the first quarter of 2005 through the second quarter of 2007, he received between $80,000 and $200,000 in employment taxes from his clients, which he, in turn, was to pay to the IRS. Instead, however, Abdi used the money for his own purposes.

This case was the result of an investigation by the IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Michael L. Cheever.

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

 

 

MINNEAPOLIS—Yesterday in federal court in St. Paul, a 27-year-old Farmington man and 29-year-old Apple Valley woman pleaded guilty to the armed robbery of America’s Best Value Inn and Suites in Northfield. On April 2, 2013, Eric Wade Forcier pleaded guilty to two counts of interference with commerce by robbery pursuant to the Hobbs Act; one count of using, carrying, possessing and brandishing a firearm during and in relation to a crime of violence; and one count of being a felon in possession of a firearm. Julie Ann Campana pleaded guilty to one count of aiding and abetting interference with commerce by robbery. Both were indicted on December 3, 2012, and both pleas were entered before United States District Court Judge Paul A. Magnuson.

In his plea agreement, Forcier admitted that on October 29, 2012, he entered the hotel wearing a Halloween mask, pointed a handgun at the night manager, and demanded money from the cash register and the safe. After receiving $114, he ran outside to an awaiting vehicle. Shortly after the car left the scene, police stopped it and arrested Campana, the driver. Forcier fled from police, discharging his handgun, but was arrested later in the day. Officers recovered items from the vehicle as well as along the path that Forcier took in running from the police. Those items included the Halloween mask and a .32-caliber, semi-automatic pistol.

Forcier also admitted robbing four other businesses. On October 22, 2012, he stole $1,850 from Eddy’s Bar & Grill in Inver Grove Heights. He admittedly entered the bar, pointed a handgun at several employees, and fired it at the ceiling. On October 15, 2012, he stole $60 from an Apple Valley Domino’s Pizza; on October 18, 2012, he stole $154.41 from a Bloomington SuperAmerica; and on October 19, 2012, he stole $200 from an Apple Valley Jiffy Lube.

Because he is a felon, Forcier is prohibited under federal law from possessing firearms at any time. His prior Dakota County convictions include second-degree drug possession (2008), possession of stolen property (2008), two counts of fifth-degree drug possession (2007), and fleeing police in a motor vehicle (2007).

In her plea agreement, Campana admitted she was the lookout and get-away driver for Forcier on October 29. Campana also admitted that before the robbery, she asked the hotel’s night manager several questions about the hotel’s nighttime operations. In addition, Campana was admittedly Forcier’s get-away driver for the robberies at Eddy’s, SuperAmerica, and Domino’s.

For his crimes, Forcier faces a potential maximum penalty of 20 years in prison on each of the two robbery counts; life in prison for brandishing a firearm; and ten years in prison for being a felon in possession of a firearm. Campana faces a potential maximum penalty of 20 years in prison. Judge Magnuson will determine their sentences at a future hearing, yet to be scheduled.

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

This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Dakota County Sheriff’s Office; the Rice County Sheriff’s Office; and the police departments of Apple Valley, Bloomington, Inver Grove Heights and Northfield. It is being prosecuted by Assistant U.S. Attorneys Amber M. Brennan and Allen A. Slaughter.

 

 

MINNEAPOLIS—Earlier today in federal court, a 43-year-old Mendota Heights man was sentenced for possessing with intent to distribute more than 50 grams of high-purity methamphetamine. United States District Court Chief Judge Michael J. Davis sentenced Joseph Benjamin Thomas to 120 months in prison on one count of possession with intent to distribute methamphetamine in violation of federal law. Thomas was indicted on April 16, 2012, and pleaded guilty on July 11, 2012. In his plea agreement, Thomas admitted that between February 1 and April 16, 2012, he possessed with intent to distribute in excess of 50 grams of methamphetamine.

This case was the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the University of Minnesota Police Department; the Minneapolis Police Department; and the St. Paul Police Department, with significant assistance from the Fairmont Police Department and the Minnesota Department of Corrections. It was prosecuted by Assistant U.S. Attorney Andrew R. Winter.

 

 

MINNEAPOLIS—Earlier today in federal court, a 32-year-old St. Paul felon was sentenced for possessing a .38-caliber, semi-automatic pistol. United States District Court Judge David S. Doty sentenced Jose Antonio Caban to 84 months in prison on one count of being a felon in possession of a firearm. Caban was indicted on July 16, 2012, and pleaded guilty on September 18, 2012.

In his plea agreement, Caban admitted that on June 6, 2012, a police officer found him in possession of a firearm at a bar in St. Paul. Because he is a felon, Caban is prohibited under federal law from possessing firearms at any time. He was previously convicted in Ramsey County in 2011 for terroristic threats.

This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Richard A. Newberry.

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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—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.

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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/

 

 

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.

 

 

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.

 

 

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.

 

 

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.”

 

 

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.

 

 

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.

 

 

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.