District of Minnesota
Press releases recorded for this federal judicial district.
Savage Woman Pleads Guilty for Her Role in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – A Savage woman pleaded guilty for her role in the fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, Ayan Farah Abukar, 43, and her co-defendants participated in a massive scheme to defraud the Federal Child Nutrition Program by obtaining, misappropriating, and laundering millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
According to court documents, Abukarwas the founder and executive director of Action for East African People, a non-profit which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. Between October 2020 through 2022, Abukar falsely claimed to be serving as many as 5,000 children a day at her various sites in Bloomington, Minneapolis, Savage, and St. Paul. In total, Abukar fraudulently received approximately $5.7 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme to defraud, Abukar also paid more than $330,000 in kickbacks to a Feeding Our Future employee. Abukar spent millions on real estate, including a 37-acre commercial property in Lakeville and spent hundreds of thousands of dollars to purchase an aircraft in Nairobi, Kenya.
Abukar pleaded guilty today in U.S District Court before Chief Judge Schiltz to one count of conspiracy to commit wire fraud. A sentencing hearing will be scheduled at a later date.
The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Feeding our Future Defendant Sentenced to 17 Years in Prison for His Role in $250 Million Fraud SchemeRead the Press Release
MINNEAPOLIS – A Bloomington man has been sentenced to 210 months in prison followed by three years of supervised release for his role in a $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick. The defendant was also ordered to pay restitution in the amount of $47,920,514.
“The defendant committed a brazen fraud that shamelessly stole taxpayer money intended to feed children during a global pandemic. He lined his pockets, here and abroad, with millions,” said Acting U.S. Attorney Kirkpatrick. “As the Court found, he doubled down on his crimes by obstructing justice. This significant sentence should serve as a clear warning to anyone who would seek to exploit and defraud government programs. You will be held accountable.”
As proven at trial, Mukhtar Mohamed Shariff, 34, and his co-defendants devised and carried out a multi-million fraud scheme to defraud the Federal Child Nutrition Program. As the chief executive officer of Afrique Hospitality Group, Shariff obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. Their scheme was accomplished by exploiting changes in the nutrition program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Shariff and his co-defendants created and submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site and false invoices purporting to document the purchase of food to be served to children at the sites. The conspirators also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, and it allowed for off-site food distribution to children outside of educational programs.
Following a seven-week trial in U.S. District Court before Judge Nancy E. Brasel in June 2024, Shariff was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. In handing down the sentence today, Judge Brasel commented that Shariff’s conduct showed a “staggering lack of respect for the law,” and that taxpayers were “outraged by the brazenness of the crime.”
The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier prosecuted the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Felon Sentenced to Six Years in Prison for Illegally Possessing Firearm on Minneapolis Light RailRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 72 months in prison followed by three years of supervised release for illegally possessing a firearm as a felon, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, on June 11, 2024, an anonymous 911 caller reported that a man had threatened to shoot the caller’s boyfriend while riding the light-rail train in Minneapolis. The caller provided a physical description of the man, and said he was carrying a firearm in a blue nylon drawstring backpack. Police responded to the light-rail station at Lake Street and Hiawatha Avenue in Minneapolis where they saw a man, later identified as George Matthews IV, 34, who fit the caller’s description and was carrying a blue nylon drawstring backpack. Officers shouted at Matthews to stop, but instead, he fled the scene and abandoned the blue backpack as he ran. Inside the backpack, officers found a Kimber Micro 9mm pistol with one round of ammunition in the chamber and four rounds in the magazine. Matthews was arrested moments later while wearing a Smith & Wesson belt clip.
Because Matthews has prior felony convictions for aggravated robbery, he is prohibited under federal law from possessing firearms.
Matthews pleaded guilty to one count of illegally possessing a firearm as a felon on September 11, 2024. He was sentenced on January 15, 2025, in U.S. District Court by Judge John R. Tunheim.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Metro Transit Police.
Assistant U.S. Attorney Matthew D. Forbes prosecuted the case.
Man Indicted for Involuntary Manslaughter on Bois Forte ReservationRead the Press Release
DULUTH, Minn. – A man has been indicted for involuntary manslaughter after the death of a woman on the Bois Forte Reservation, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, on December 17, 2024, the St. Louis County 911 Center received several calls regarding an apparently intoxicated woman walking on Tibbets Trail near the Fortune Bay Resort and Casino. Officers were dispatched to the scene and discovered an unconscious woman lying in the snow. The victim was transported from the scene and pronounced dead. Vehicle debris at the scene included pieces from a dark blue vehicle and pieces of plastic that appeared to be headlights or turn signals. Given this information and the location of the accident, law enforcement contacted the Fortune Bay Resort and Casino for any surveillance footage that may show blue vehicles departing the casino around the time of the 911 calls. Casino staff was able to identify a dark blue Dodge Durango departing the casino. Eric Scott Peterson, 50, was determined to be the registered owner of the vehicle. A search warrant was executed at his residence, where a blue Dodge Durango was found in the driveway with damage consistent with the debris collected from the accident scene.
Peterson was indicted on two counts of involuntary manslaughter. He was arraigned yesterday in U.S. District Court before Magistrate Judge Leo I. Brisbois.
This case is the result of an investigation conducted by Bois Forte Police Department, Minnesota State Patrol, and the FBI.
Assistant U.S. Attorney Nichole J. Carter is prosecuting the case.
Federal Jury Finds Repeat Offender Guilty of Receipt, Possession of Child Sexual Abuse MaterialRead the Press Release
ST. PAUL Minn. — A federal jury convicted a Ramsey County man for receipt and possession of videos and images depicting the sexual abuse of children, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents and evidence presented at trial, Peter Michael Guevara, 56, was on “intensive supervised release” (ISR) for a previous conviction in 2014 of possession of child sexual abuse material in Sherburne County, Minnesota. Law enforcement agents received a tip the defendant was using an unauthorized smart phone. On November 12, 2020, agents conducted a surprise search of Guevara’s property, and found an Apple iPhone in the defendant’s pocket. Officers confirmed that it was an unauthorized device and arrested Guevara. Shortly afterwards, the defendant was recorded on jail calls instructing family members on how to remotely lock and erase the contents of his confiscated iPhone. A forensic examination of the iPhone later found more than 4,000 images and videos of prepubescent minors under the age of 18 engaged in illegal sexual activity.
A federal jury found Guevara guilty yesterday after a three-day trial on one count of receipt of child pornography and one count of possessing child pornography. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI, with assistance from the Minnesota Department of Corrections and Minnesota Bureau of Criminal Apprehension. It was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney LeeAnn K. Bell and DOJ Trial Attorney Emily A. Polachek prosecuted the case.
Texas Man Indicted After Escape from Federal CustodyRead the Press Release
MINNEAPOLIS – A Texas man has been indicted for escaping from federal custody, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 11, 2024, Ismael Benavidez, 48, was in custody of the Bureau of Prisons and lawfully confined to the Volunteers of America Residential Reentry Center in the District of Minnesota when he walked away without authorization. Benavidez was serving an initial sentence of 40 months’ imprisonment and three years of supervised release after pleading guilty to Conspiracy to Harbor Illegal Aliens on October 25, 2018, in the Western District of Texas.
The indictment charges Benavidez with one count of escape from custody. At his arraignment hearing today in U.S. District Court, Benavidez was ordered to be detained pending further proceedings by Magistrate Judge Dulce J. Foster.
This case is the result of an investigation conducted by the U.S. Marshals Service.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Burnsville Woman Pleads Guilty to Straw Purchasing Firearms Used in Fatal Shooting of First RespondersRead the Press Release
ST. PAUL, Minn. – A Burnsville woman has pleaded guilty to straw purchasing multiple firearms for a felon, two of which were used to fatally shoot police officers Paul Elmstrand and Matthew Ruge, and firefighter paramedic Adam Finseth in Burnsville on February 18, 2024, announced U.S. Attorney Andrew M. Luger.
According to court documents, between September of 2023 and January of 2024, the defendant purchased five different firearms from two different federal firearms licensees that the defendant knowingly transferred to her domestic partner, Shannon Cortez Gooden. Under Gooden’s direction, Dyrdahl purchased the firearms and transferred them to Gooden, despite knowing that Gooden was a felon and was therefore legally prohibited from obtaining or possessing firearms.
Among the firearms Dyrdahl bought for Gooden were three semiautomatic AR-15–style firearm lower-receivers. One of these was a Franklin Armory FAI-15 .300 caliber semiautomatic firearm that was equipped with a binary trigger. A firearm with a binary trigger fires one shot when the trigger is pulled and another when the trigger is released, effectively doubling the rate of fire. Dyrdahl also purchased a .300 caliber barrel for the lower receiver. Dyrdahl knew that Gooden was loading the semiautomatic AR-15–style firearms with .300 Blackout ammunition, which is a heavier load ammunition that has an increased potential for lethality.
On February 18, 2024, Gooden used two firearms that Dyrdahl purchased for him to ambush police officers and firefighter paramedics who were responding to a call for help in his home. Gooden used a large-capacity magazine in the attack. The attack killed two police officers and a firefighter paramedic and injured a third police officer.
Dyrdahl pleaded guilty yesterday in U.S. District Court to two counts of straw purchasing in front of U.S. District Judge Jerry W. Blackwell. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Burnsville Police Department, with assistance from the Dakota County Attorney’s Office and the Burnsville Fire Department.
Assistant U.S. Attorneys Kristian Weir and Thomas Calhoun-Lopez are prosecuting the case.
U.S. Attorney Andrew M. Luger Announces Resignation from the District of MinnesotaRead the Press Release
MINNEAPOLIS – U.S. Attorney Andrew M. Luger officially announced his resignation as the chief federal law enforcement officer in the district, effective 11:59 p.m. on January 15, 2025. His resignation marks the close of U.S. Attorney Luger’s second stint as the top prosecutor and federal law enforcement executive in the state of Minnesota. He was appointed by President Joseph R. Biden and sworn in on March 30, 2022, as the 37th United States Attorney for the District of Minnesota. He was previously appointed by President Barack Obama and served as Minnesota’s United States Attorney from 2014 until 2017.
U.S. Attorney Andrew Luger said: “I have been honored to lead this office for the second time. In March 2022, I set us on the path to address violent crime to meet the challenge our community faced. I am so grateful to the people of this Office and our many law enforcement partners for the work we have done to bring violent criminals to justice. We have also taken aggressive action against child predators, for which I am proud.”
Under U.S. Attorney Luger’s leadership, the U.S. Attorney’s Office prioritized the prosecution of crimes related to gun and gang violence, narcotics trafficking, child exploitation online, human trafficking and smuggling, and financial fraud and public corruption. Carrying out the U.S. Attorney’s violent crime initiative, the United States Attorney’s Office charged over 100 gang members, brought first ever RICO cases against Minneapolis gangs, charged 70 defendants in the Feeding Our Future scandal and charged 5 people with attempting to bribe a juror in the first Feeding Our Future trial. The Office brought charges against a defendant for an attempted arson at a Mosque, won a conviction in the sex trafficking case against Tony Lazzaro, and indicted a woman for s straw purchasing firearms used in fatal shooting of three first responders in Burnsville, Minnesota. U.S. Attorney Luger’s direction, the Office also revamped and expanded its work in Indian Country, opened an office in Duluth with the first-ever full-time federal prosecutor outside of the Metro and expanded its civil enforcement and investigation of civil rights cases.
U.S. Attorney Luger’s vision and innovative approach to combatting violent crime in the Twin Cities and beyond recently earned him commendation from the Minnesota Police and Peace Officers Association and the Minneapolis Police Department. Last September, U.S. Attorney Luger received an Honorary Award of Appreciation from the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for his “innovative strategy of both targeting those who are committing firearm violence and disrupting the supply of firearms to criminals in Minnesota” and support of the overall mission of the ATF.
U.S. Attorney Luger was also appointed by Attorney General Garland to serve on the Attorney General’s Advisory Committee, and he chaired its Violent Crime Subcommittee, leading over 30 U.S. Attorney’s in developing and implementing innovative strategies to address violent crime around the nation.
Upon Mr. Luger’s resignation, Lisa D. Kirkpatrick, who currently serves as First Assistant United States Attorney, will become the Acting United States Attorney. Ms. Kirkpatrick is a veteran federal prosecutor who previously served as Executive Assistant U.S. Attorney and Appellate Chief.
“I thank President Biden for nominating me as United States Attorney, and Attorney General Garland for leading the Department and supporting the District of Minnesota during my tenure. I was privileged to work closely with Attorney General Garland and Deputy Attorney General Lisa Monaco. It has been an honor to serve the American people,” U.S. Attorney Luger commented in closing.
Minnesota Man Charged with Federal Hate Crimes for Assault Against Black ManRead the Press Release
A Minnesota man was arrested last week and charged with federal hate crime offenses for assaulting a Black man outside of a bar.
According to the indictment that was unsealed yesterday, on or about Feb. 3, 2024, Justin Anthony Kudla used force or the threat of force to injure, intimidate and interfere with the victim — a Black man identified in the indictment as Victim 1 — because of Victim 1’s race, color, religion and/or national origin, and because Victim 1 was enjoying the goods, services, facilities, privileges, advantages and accommodations of a local bar. The indictment also charges Kudla with willfully causing bodily injury to Victim 1 because of Victim 1’s actual and perceived race.
If convicted, Kudla faces a maximum penalty of 10 years in prison for each offense and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Andrew M. Luger for the District of Minnesota and Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office made the announcement.
The FBI Minneapolis Field Office is investigating the case, with assistance from the Belle Plaine Police Department.
Assistant U.S. Attorney Evan Gilead for the District of Minnesota and Trial Attorneys Katherine G. DeVar and Briana M. Clark of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minnesota Man Charged with Hate Crime for Assault Against Black ManRead the Press Release
MINNEAPOLIS – A Minnesota man was indicted today and charged with federal hate crime offenses for assaulting a Black man outside of a bar, announced U.S. Attorney Andrew M. Luger.
According to the indictment that was unsealed this afternoon, on or about February 3, 2024, Justin Anthony Kudla, 35, used force or the threat of force to injure, intimidate, and interfere with the victim – a Black man identified in the indictment as Victim 1 – because of Victim 1’s race, color, religion and/or national origin, and because Victim 1 was enjoying the goods, services, and accommodations of a local bar. The indictment also charges Kudla with willfully causing bodily injury to Victim 1 because of Victim 1’s actual and perceived race.
The indictment charges Kudla with one count of interference with federally protected activities and one count of hate crime. He made his initial appearance in U.S. District Court today before Magistrate Judge Dulce J. Foster. If convicted of the hate crime offenses, Kudla faces a maximum penalty of 10 years in prison for each offense and a fine of up to $250,000.
This case is the result of an investigation conducted by the FBI Minneapolis Field Office, with assistance from the Belle Plaine Police Department. Assistant U.S. Attorney Evan Gilead for the District of Minnesota and Trial Attorneys Katherine G. DeVar and Briana M. Clark of the Civil Rights Division are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minnesota Construction Company Agrees to Pay $5.9M to Resolve False Claims Act ViolationsRead the Press Release
MINNEAPOLIS – Morcon Construction Company, Inc., based in Fridley, Minnesota, has agreed to pay $5.9 million dollars to resolve allegations of False Claims Act violations. Founded in 1982, Morcon is a general contractor responsible for certain repair, maintenance, and related work at U.S. Postal Service sites throughout Minnesota and elsewhere.
The United States alleged that beginning in approximately January 1, 2016, to the present, Morcon intentionally failed to disclose the use of subcontractors to perform repairs and maintenance; falsely certified work as self-performed rather than performed by subcontractors; and falsified subcontractor invoices as part of its claims submissions.
The United States contended that Morcon’s fraudulent conduct resulted in millions of dollars of false claims paid by the United States Postal Service. “This case demonstrates the dedication of the United States Attorney’s Office along with our law enforcement partners to pursue those who undermine the integrity of the government contracting process,” said U.S. Attorney Andrew M. Luger.
“We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our repairs and maintenance program,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “Special Agents of the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service. This settlement demonstrates that the USPS OIG will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers.”
Assistant U.S. Attorney Kristen Rau and U.S. Attorney’s Office investigator Maleko Lattin-McCrary with the assistance of the USPS Office of Inspector General investigated the matter.
The claims resolved by this settlement are allegations only. There has been no determination of liability.
Virginia Man Sentenced to 16 Years in Prison for Sextortion and Production of Sexually Explicit Videos of a MinorRead the Press Release
ST. PAUL, Minn. – A Virginia man has been sentenced to 192 months in prison followed by 20 years of supervised release for using social media to contact and coerce a minor to create sexually explicit material, announced U.S. Attorney Andrew M. Luger.
According to court documents, between November 2023 and February 2024, Raymond Jung Woo Choi, a.k.a Jason Lee, 42, of Centreville, Virginia, used Instagram and other social media apps to engage in sexually-focused conversations with a 13–14-year-old girl. Often using the alias “Jason Lee,” Choi knowingly enticed and coerced the minor victim to send him sexually explicit images and videos on Instagram. Choi also groomed and enticed the minor victim by providing gifts, which he sent via Amazon or mailed directly via the U.S. Postal Service.
According to court documents, on February 17, 2024, Choi flew from Virginia to Minnesota to attempt to meet the minor victim in person. Because of family and law enforcement intervention, Choi was unsuccessful in his meeting attempt and flew back to Virginia.
Choi pleaded guilty to one count of production of child pornography on October 2, 2024. He was sentenced today in U.S. District Court by Judge Donovan W. Frank.
This case is the result of an investigation conducted by the Anoka County Sheriff’s Office and U.S. Postal Inspection Service. It was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney Matthew C. Murphy prosecuted the case.
Two Men Indicted in $3M Tax Fraud ConspiracyRead the Press Release
ST. PAUL, Minn. – A 10-count indictment charges two defendants with conspiracy to defraud the United States and making false claims for over three million dollars in tax refunds, announced U.S. Attorney Andrew M. Luger.
According to court documents, between approximately April 2022 and May 2023, Henry Remington Herod, 42, of Minneapolis, and Matthew McDowell, 44, of Port Allen, Louisiana, conspired to defraud the United States by preparing and filing false federal income tax returns for themselves and others. The returns included false employment, income, and tax credit information they knew to be false, and which resulted in large refunds the filing taxpayers were not entitled to.
According to court documents, for tax year 2021, Herod prepared and filed false tax returns claiming refundable sick and family leave tax credits available to certain self-employed individuals unable to work due to COVID-19. For tax year 2022, Herod and McDowell prepared and filed false tax returns claiming refundable tax credits for federal taxes paid on fuel ostensibly used for off-highway business purposes. Collectively, the defendants knowingly and willfully completed and filed 115 fraudulent federal income tax returns, falsely claiming approximately $3,032,839 in tax refunds the filers were not entitled to.
Herod and McDowell are each charged with one count of conspiracy to defraud the United States, and Herod is charged with nine counts of making false claims. Herod made his initial appearance in U.S. District Court on December 12, 2024, and McDowell made his initial appearance on December 26, 2024; both defendants were released upon conditions.
This case is the result of an investigation conducted by the IRS, Criminal Investigation.
Assistant U.S. Attorney Matthew C. Murphy is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Reaches Agreement with the City of Minneapolis and Minneapolis Police Department to Reform City’s and Police Department’s Unconstitutional and Unlawful PracticesRead the Press Release
MINNEAPOLIS — The Justice Department announced today that it has entered into a court enforceable agreement with the City of Minneapolis and Minneapolis Police Department (MPD) to resolve the Department’s findings that the city and MPD engage in a pattern or practice of conduct that violates the First, Fourth, and 14th Amendments of the Constitution as well as the Americans with Disabilities Act and other federal anti-discrimination laws.
The consent decree, filed today in the U.S. District Court for the District of Minnesota and subject to court approval, sets forth the roadmap to reform within the city and MPD. The decree’s requirements focus on preventing excessive force; stopping racially discriminatory policing; improving officers’ interactions with youth; protecting the public’s First Amendment rights; preventing discrimination against people with behavioral health disabilities; promoting well-being of officers and employees; and enhancing officers’ supervision and accountability. The decree calls for the appointment of the Effective Law Enforcement For All team as an independent monitor to assess whether the requirements of the decree are being implemented. The independent monitor will report publicly on the city’s implementation efforts on a regular basis.
“This agreement places the City of the Minneapolis and the Minneapolis Police Department on a path toward achieving the significant reforms, lawful policing, and appropriate emergency response services that the residents of Minneapolis deserve,” said Attorney General Merrick B. Garland. “As I said last summer when I announced the findings of this investigation – George Floyd should be alive today. This agreement is an important step toward ensuring that meaningful, durable reform is achieved in Minneapolis.”
“The people of Minneapolis deserve constitutional policing, bias-free public safety efforts, and effective emergency response services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The consent decree we unveil today marks a new chapter for Minneapolis, a city still healing following the tragic death of George Floyd. Through this consent decree, the City and the Minneapolis Police Department have committed to instituting reforms that will make Minneapolis a model law enforcement agency that respects everyone’s civil and constitutional rights. We look forward to working collaboratively with city officials, the Minneapolis Police Department, and the people of Minneapolis to usher in a new era of change and transformation.”
“This agreement calls for focused, measurable, and detailed reforms that reflect input from the community and a shared goal of positive transformation to benefit the City, the police, and the citizens of Minneapolis,” said Civil Chief and Assistant U.S. Attorney Ana Voss for the District of Minnesota.
Under the consent decree, the City of Minneapolis and MPD will implement comprehensive reforms to:
• Use de-escalation to minimize the need to use force and increase the likelihood of voluntary compliance; resolve incidents without force where possible; use force proportional to the threat; and adopt use of force policies, training, and review systems that provide sufficient guidance and develop necessary skills;
• Enforce the law fairly and impartially, providing equal protection of the law for all people in Minneapolis and barring racial discrimination in enforcement;
• Respect the First Amendment rights of all persons;
• Maintain an emergency response system that respects the rights of people with behavioral health disabilities;
• Investigate allegations of employee misconduct fully, fairly, and efficiently; predicate investigative findings on the appropriate standard of proof and document them in writing, and hold officers who commit misconduct accountable pursuant to a disciplinary system that is fair, consistent, and provides due process;
• Approach youth in a manner that is developmentally appropriate, age-appropriate, and trauma-informed; and
• Provide confidential mental health wellness services to all MPD officers and other groups of public safety personnel.
The Justice Department announced its findings in June 2023, following a thorough investigation into the City of Minneapolis and MPD. The Department found that it had reasonable cause to believe that MPD: uses excessive force, including unjustified deadly force and unreasonable use of tasers; unlawfully discriminates against Black people and Native American people in its enforcement activities; violates the rights of people engaged in protected speech; and — together with the city — discriminates against people with behavioral health disabilities when responding to calls for assistance. The Department concluded that persistent deficiencies in policy, training, supervision, and accountability contribute to the unlawful conduct.
The Civil Rights Division’s Special Litigation Section and U.S. Attorney’s Office for the District of Minnesota conducted the investigation, with the assistance of law enforcement professionals, pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994. Since January 2021, the Special Litigation Section has opened 12 investigations into law enforcement agencies. The section is enforcing 15 agreements with law enforcement agencies and two post-judgment orders. Additionally, on Dec. 12, 2024, the Department and Louisville, Kentucky, Metro Government filed a joint motion in the U.S. District Court for the Western District of Kentucky to enter a consent decree intended to resolve the Justice Department’s findings that Louisville Metro and the Louisville Metro Police Department engage in a pattern or practice of violations of the Constitution and federal law. That motion remains pending court approval.
Additional information about the Civil Rights Division is available at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Minnesota is available at www.justice.gov/usao-mn.
Information specific to the Civil Rights Division’s police reform work can be found at www.justice.gov/crt/conduct-law-enforcement-agencies.
The Justice Department will hold a virtual community meeting at 7:00 p.m. CT on Tuesday, Jan. 14. Members of the public are encouraged to attend to learn more about the consent decree.
View the consent decree fact sheet here.
Justice Department Reaches Agreement with the City of Minneapolis and Minneapolis Police Department to Reform City’s and Police Department’s Unconstitutional and Unlawful PracticesRead the Press Release
The Justice Department announced today that it has entered into a court enforceable agreement with the City of Minneapolis and Minneapolis Police Department (MPD) to resolve the Department’s findings that the city and MPD engage in a pattern or practice of conduct that violates the First, Fourth, and 14th Amendments of the Constitution as well as the Americans with Disabilities Act and other federal anti-discrimination laws.
The consent decree, filed today in the U.S. District Court for the District of Minnesota and subject to court approval, sets forth the roadmap to reform within the city and MPD. The decree’s requirements focus on preventing excessive force; stopping racially discriminatory policing; improving officers’ interactions with youth; protecting the public’s First Amendment rights; preventing discrimination against people with behavioral health disabilities; promoting well-being of officers and employees; and enhancing officers’ supervision and accountability. The decree calls for the appointment of the Effective Law Enforcement For All team as an independent monitor to assess whether the requirements of the decree are being implemented. The independent monitor will report publicly on the city’s implementation efforts on a regular basis.
“This agreement places the City of the Minneapolis and the Minneapolis Police Department on a path toward achieving the significant reforms, lawful policing, and appropriate emergency response services that the residents of Minneapolis deserve,” said Attorney General Merrick B. Garland. “As I said last summer when I announced the findings of this investigation — George Floyd should be alive today. This agreement is an important step toward ensuring that meaningful, durable reform is achieved in Minneapolis.”
“The people of Minneapolis deserve constitutional policing, bias-free public safety efforts, and effective emergency response services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The consent decree we unveil today marks a new chapter for Minneapolis, a city still healing following the tragic death of George Floyd. Through this consent decree, the City and the Minneapolis Police Department have committed to instituting reforms that will make Minneapolis a model law enforcement agency that respects everyone’s civil and constitutional rights. We look forward to working collaboratively with city officials, the Minneapolis Police Department, and the people of Minneapolis to usher in a new era of change and transformation.”
“This agreement calls for focused, measurable, and detailed reforms that reflect input from the community and a shared goal of positive transformation to benefit the City, the police, and the citizens of Minneapolis,” said Civil Chief and Assistant U.S. Attorney Ana Voss for the District of Minnesota.
Under the consent decree, the City of Minneapolis and MPD will implement comprehensive reforms to:
- Use de-escalation to minimize the need to use force and increase the likelihood of voluntary compliance; resolve incidents without force where possible; use force proportional to the threat; and adopt use of force policies, training, and review systems that provide sufficient guidance and develop necessary skills;
- Enforce the law fairly and impartially, providing equal protection of the law for all people in Minneapolis and barring racial discrimination in enforcement;
- Respect the First Amendment rights of all persons;
- Maintain an emergency response system that respects the rights of people with behavioral health disabilities;
- Investigate allegations of employee misconduct fully, fairly, and efficiently; predicate investigative findings on the appropriate standard of proof and document them in writing, and hold officers who commit misconduct accountable pursuant to a disciplinary system that is fair, consistent, and provides due process;
- Approach youth in a manner that is developmentally appropriate, age-appropriate, and trauma-informed; and
- Provide confidential mental health wellness services to all MPD officers and other groups of public safety personnel.
The Justice Department announced its findings in June 2023, following a thorough investigation into the City of Minneapolis and MPD. The Department found that it had reasonable cause to believe that MPD: uses excessive force, including unjustified deadly force and unreasonable use of tasers; unlawfully discriminates against Black people and Native American people in its enforcement activities; violates the rights of people engaged in protected speech; and — together with the city — discriminates against people with behavioral health disabilities when responding to calls for assistance. The Department concluded that persistent deficiencies in policy, training, supervision, and accountability contribute to the unlawful conduct.
The Civil Rights Division’s Special Litigation Section and U.S. Attorney’s Office for the District of Minnesota conducted the investigation, with the assistance of law enforcement professionals, pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994. Since January 2021, the Special Litigation Section has opened 12 investigations into law enforcement agencies. The section is enforcing 15 agreements with law enforcement agencies and two post-judgment orders. Additionally, on Dec. 12, 2024, the Department and Louisville, Kentucky, Metro Government filed a joint motion in the U.S. District Court for the Western District of Kentucky to enter a consent decree intended to resolve the Justice Department’s findings that Louisville Metro and the Louisville Metro Police Department engage in a pattern or practice of violations of the Constitution and federal law. That motion remains pending court approval.
Additional information about the Civil Rights Division is available at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Minnesota is available at www.justice.gov/usao-mn.
Information specific to the Civil Rights Division’s police reform work can be found at www.justice.gov/crt/conduct-law-enforcement-agencies.
The Justice Department will hold a virtual community meeting at 7:00 p.m. CT on Tuesday, Jan. 14. Members of the public are encouraged to attend to learn more about the consent decree.
View the consent decree fact sheet here.
El Departamento de Justicia celebra un acuerdo con la Ciudad de Minneapolis y el Departamento de Policía de Minneapolis para reformar las prácticas inconstitucionales e ilegales de la Ciudad y el Departamento de PolicíaRead the Press Release
El Departamento de Justicia anunció hoy que ha celebrado un acuerdo ejecutable judicialmente con la ciudad de Minneapolis y el Departamento de Policía de Minneapolis (MPD, por sus siglas en inglés) para resolver las conclusiones del Departamento en cuanto a que la ciudad y el MPD participaron en un patrón o práctica de conductas que violan la Primera, Cuarta y Decimocuarta Enmiendas a la Constitución, así como la Ley de Estadounidenses con Discapacidades y otras leyes federales antidiscriminatorias.
La orden de consentimiento, presentada hoy en el Tribunal de Distrito de los EE. UU. para el Distrito de Minnesota y sujeto a la aprobación del tribunal, establece el mapa de la reforma dentro de la ciudad y del MPD. Los requisitos de la orden se enfocan en prevenir el uso excesivo de la fuerza; detener las prácticas policiales racialmente discriminatorias; mejorar la interacción de los agentes con los jóvenes; proteger los derechos del público en virtud de la Primera Enmienda; prevenir la discriminación contra personas con discapacidades de salud del comportamiento; fomentar el bienestar de los agentes y empleados; y mejorar la supervisión y el rendimiento de cuentas de los agentes. La orden pide el nombramiento del Equipo de Aplicación Efectiva de la Ley para Todos como un observador independiente para evaluar si los requisitos de la orden están siendo implementados. El observador independiente reportará públicamente de forma regular sobre los esfuerzos de implementación de la ciudad.
“Este acuerdo coloca a la ciudad de Minneapolis y al Departamento de Policía de Minneapolis en capacidad de realizar reformas significativas, prácticas policiales lícitas y servicios de respuesta de emergencia apropiados que se merecen los residentes de Minneapolis”, afirmó el fiscal general Merrick B. Garland. “Como dije el verano pasado cuando anuncié los resultados de esta investigación, George Floyd debería estar vivo hoy. Este acuerdo es un paso importante para garantizar una reforma significativa y duradera en Minneapolis”.
“Los ciudadanos de Minneapolis merecen prácticas policiales constitucionales, esfuerzos de seguridad púbica sin discriminación y servicios de respuesta de emergencia eficaces”, dijo la fiscal general auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento. La orden de consentimiento que hacemos pública hoy marca un nuevo capítulo para Minneapolis, una ciudad todavía recuperándose de la trágica muerte de George Floyd. Mediante esta orden de consentimiento, la ciudad y el Departamento de Policía de Minneapolis se han comprometido a instaurar reformas que harán de Minneapolis un modelo de agencia del orden público, que respeta los derechos civiles y constitucionales de todos. Esperamos trabajar en colaboración con los agentes de la ciudad, el Departamento de Policía de Minneapolis y los ciudadanos de Minneapolis para iniciar una nueva era de cambio y transformación”.
“Este acuerdo pide que se hagan reformas que sean enfocadas, medibles y detalladas que reflejen las sugerencias y comentarios de la comunidad y un objetivo compartido de transformación positiva en beneficio de la ciudad, la policía y los ciudadanos de Minneapolis”, afirmó la jefa de Asuntos Civiles y fiscal general auxiliar Ana Voss para el Distrito de Minnesota.
Según la orden de consentimiento, la ciudad de Minneapolis y el MPD implementarán reformas integrales para:
- Utilizar técnicas de desescalamiento a fin de minimizar la necesidad del uso de la fuerza y aumentar la probabilidad de la obediencia voluntaria; resolver los incidentes sin el uso de la fuerza cuando sea posible; utilizar fuerza proporcional a la amenaza; y adoptar políticas de uso de la fuerza, capacitación y sistemas de revisión que den la orientación suficiente y desarrollen las destrezas necesarias;
- Hacer cumplir la ley de manera equitativa e imparcial, brindando igual protección de la ley a todos en Minneapolis sin discriminación racial al momento de hacerlo;
- Respetar los derechos de todas las personas en virtud de la Primera Enmienda;
- Mantener un sistema de repuesta de emergencia que respete los derechos de las personas con discapacidades de salud del comportamiento;
- Investigar alegaciones de mala conducta de los empleados en forma completa, equitativa y eficiente; basar las conclusiones de la investigación en el estándar de prueba adecuado y documentarlas por escrito, y responsabilizar a los agentes que cometan mala conducta de acuerdo con un sistema disciplinario que sea justo, coherente y que proporcione las debidas garantías procesales;
- Aproximarse a los jóvenes de una manera apropiada a la condición de desarrollo y la edad del joven y que tenga en cuenta la posibilidad de trauma; y
- Brindar servicios confidenciales de salud mental a todos los agentes del MPD y otro personal de seguridad pública.
El Departamento de Justicia anunció sus conclusiones en junio de 2023, después de realizar una investigación exhaustiva de la ciudad de Minneapolis y del MPD. El Departamento concluyó que tiene causa razonable para creer que el MPD: utiliza fuerza excesiva (p. ej., fuerza letal injustificada y uso no razonable de pistolas paralizantes); en sus prácticas policiales discrimina en forma ilegal contra personas de raza negra y nativos americanos; viola los derechos de las personas que participan en expresión protegida; y, conjuntamente con la ciudad, discrimina contra personas con discapacidades de salud del comportamiento cuando responden a llamados de asistencia. El Departamento concluyó que las deficiencias persistentes en cuanto a las políticas, la capacitación, la supervisión y la responsabilización contribuyen a la conducta ilegal.
La Sección de Litigios Especiales de la División de Derechos Civiles y la Fiscalía Federal para el Distrito de Minnesota llevaron a cabo la investigación, con la asistencia de agentes del orden público profesionales, de conformidad con las cláusulas sobre patrones o prácticas de la Ley sobre el Control de Delitos Violentos y Aplicación de la Ley de 1994. Desde enero de 2021, la Sección de Litigios Especiales ha emprendido 12 investigaciones de agencias del orden público. La Sección está haciendo cumplir 15 acuerdos con agencias del orden público y dos órdenes posteriores al fallo. Además, el 12 de diciembre de 2024, el Departamento y el Gobierno Metropolitano de Louisville, Kentucky, presentaron una moción conjunta ante el Tribunal de Distrito de los EE. UU. para el Distrito Oeste de Kentucky para implementar una orden de consentimiento cuyo propósito es resolver las conclusiones del Departamento de Justicia según las cuales el Gobierno Metropolitano de Louisville y el Departamento de Policía Metropolitano de Louisville incurren en un patrón o práctica de violaciones de la Constitución y de la ley federal. Esa moción está pendiente de aprobación por parte del tribunal.
Hay información adicional sobre la División de Derechos Civiles en www.justice.gov/crt. Hay información adicional sobre la Fiscalía Federal para el Distrito de Minnesota en www.justice.gov/usao-mn.
Puede encontrarse información específica sobre el trabajo de reforma de la policía de la División de Derechos Civiles en www.justice.gov/crt/conduct-law-enforcement-agencies.
El Departamento de Justicia llevará a cabo una reunión comunitaria por internet el martes 14 de enero a las 7:00 p.m., Hora del Centro. Animamos al público a asistir y aprender más sobre la orden de consentimiento.
Burnsville Man Pleads Guilty to Defrauding Electronics Manufacturer of $1.2 MillionRead the Press Release
MINNEAPOLIS – A Burnsville man has pleaded guilty to wire fraud after defrauding an electronics manufacturing business out of more than $1.2 million, announced U.S. Attorney Andrew M. Luger.
According to court documents, between 2019 and 2020, Thomas Thanh Pham, 53, devised a scheme to defraud a California based company of approximately $1.2 million. Pham, who was the CEO of Enterprise Products, LLC, purported to provide consulting and financial services to commercial clients involved in engineering and manufacturing. Pham held himself out as a broker with supposed business relationships with large, well-known companies. As a supposed broker, Pham claimed he could arrange service agreements between an electronic manufacturing services company based in San Jose, California, (identified as Victim A) and his ostensible business affiliates in the electronics and technology sectors.
According to court documents, starting in June 2019, Pham began a series of discussions with Victim A, in which Pham pitched that Enterprise Products could facilitate multi-million-dollar manufacturing and repair contracts between Victim A and large electronics companies. Pham supplied Victim A with bogus documents, including fabricated contracts, correspondence, and business proposals. As part of the scheme, Pham first required Victim A to pay a “deposit bond” in the amount of $1,278,000. Pham’s fraudulent tactics resulted in Victim A agreeing to enter into a contract in September 2019, through which Victim A ostensibly would receive millions of dollars in exchange for repair services. Pham unsuccessfully pitched other phony deals to Victim A that purportedly involved even larger financial contracts deals with other companies.
As part of the scheme and to give the impression that he was fulfilling the fraudulent contract, Pham caused the initial delivery to Victim A in California of approximately 20 samples of electronic devices that supposedly required repairs by Victim A. However, Pham failed to disclose to Victim A that these 20 “sample” devices were, in fact, stolen property. It was additionally part of the scheme that Pham tried to lull Victim A into a false sense of security by offering a series of excuses and promises when Victim A either inquired about its money or demanded a refund. Rather than maintain the money securely in a refundable escrow as promised, Pham fraudulently misappropriated Victim A’s funds for a series of unauthorized uses and transactions.
On Friday, January 3, 2025, Pham pleaded guilty in U.S. District Court to one count of wire fraud before Judge Joan N. Ericksen.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert and Rebecca E. Kline are prosecuting the case.
Two Indicted in Red Lake Drug Trafficking ConspiracyRead the Press Release
MINNEAPOLIS – Two men have been indicted for conspiracy to distribute methamphetamine and fentanyl on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on or about September 4, 2024, Bobby Lee Donnell, 46, and Jordan Lee Lussier, 29, were stopped by the Minnesota State Patrol. A state trooper checked Donnell’s and Lussier’s driver’s licenses and found both had been revoked; Lussier also had a warrant for his arrest. A subsequent search of the vehicle led to the discovery of over 50 grams of methamphetamine and over 40 grams of fentanyl.
Donnell and Lussier were each indicted on one count of conspiracy to possess methamphetamine and fentanyl with the intent to distribute. An arraignment and motions hearing has been scheduled for January 24, 2025.
This case is the result of an investigation conducted by the FBI, Paul Bunyan Drug Task Force, and the Minnesota State Patrol.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sartell Woman Pleads Guilty in Bank Fraud CaseRead the Press Release
MINNEAPOLIS – A Sartell woman has pleaded guilty to wire fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, Adelle Starin, 40, engaged in a fraud scheme through a Minnesota business she founded and operated called Baby’s on Broadway, which sold baby products and toys. As part of the scheme, Starin submitted fraudulent claims for reimbursement to TRICARE, a healthcare program of the U.S. Department of Defense Military Health System. TRICARE paid out many of Starin’s fraudulent claims, but when TRICARE began rejecting those claims, Starin expanded her scheme to bring other sources of revenue into her company. She created a company called Sunshine Medical LLC and represented to two lenders—Liquid Capital Enterprises Corp. and Slope Tech. Inc.—that she needed financing to buy inventory for Baby’s on Broadway from Sunshine. In reality, and as Starin knew, Sunshine Medical had no business operations or revenue. To execute this scheme, Starin created fake Sunshine Medical invoices. She then sent those invoices to the lenders by means of wire communications in interstate commerce. Over the course of her scheme, Starin obtained over $9,000,000 in financing on the basis of her misrepresentations.
Starin pleaded guilty on December 19, 2024, in U.S. District Court to one count of wire fraud before Judge Jeffrey Bryan. A sentencing hearing will be scheduled at a later date.
The case is the result of an investigation by the FBI, and the U.S. Department of Defense’s Defense Criminal Investigative Service and Defense Health Agency Office of Inspector General.
Assistant U.S. Attorney Daniel W. Bobier is prosecuting the case for the United States.
Three Twin Cities Men Indicted in Narcotics Fraud ConspiracyRead the Press Release
MINNEAPOLIS – Three individuals have been charged in a conspiracy to acquire scheduled controlled substances by fraud, announced U.S. Attorney Andrew M. Luger.According to court documents, Oscar Becerra-Ruiz, 21, Jasper William Johnson, 19, and Rayjaun Keon Varner, 23, knowingly conspired with each other to obtain promethazine with codeine, a controlled substance. From approximately December 2022 and continuing through on or about August 3, 2023, the defendants used paid internet-based record searches to secure identifying information of registered physicians practicing in Minnesota and Wisconsin. Johnson then used this information to illegally access the Drug Enforcement Administration’s Registrant Information Consolidated System (RICS), a government-run database designed to track physician registration, compliance, and reporting, and to prevent the diversion of controlled substances from legitimate medical sources to the illicit black market.
The indictment alleges that after gaining access to multiple physicians’ RICS accounts, Johnson changed the physicians’ valid contact information in the system to phone numbers, email addresses, and physical addresses he and his co-conspirators maintained and controlled. The defendants then used the stolen and compromised information to set up physician customer accounts with several online pharmaceutical wholesalers. Using pre-paid debit cards and peer-to-peer payment accounts also registered in the physicians’ names, the defendants unlawfully placed dozens of orders with the pharmaceutical vendors for controlled substances, including promethazine with codeine, a prescription-strength cough syrup containing the opioid codeine.
To date, the investigation, which remains ongoing, has not uncovered any evidence of patients or patient information having been compromised by the defendants.
Becerra-Ruiz, Johnson, and Varner were each charged with conspiracy to obtain controlled substances by fraud and attempt to obtain controlled substances by fraud. Johnson was charged with an additional 11 counts of wire fraud, 3 counts of accessing a protected computer in furtherance of fraud, and 4 counts of aggravated identity theft. The defendants will be arraigned at a later date.
This case is the result of an investigation conducted by the Drug Enforcement Administration, with assistance from the U.S. Postal Inspection Service and the U.S. Secret Service.
Assistant U.S. Attorneys Lauren O. Roso and Allen A. Slaughter are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Indicted in Medicaid Fraud Conspiracy SchemeRead the Press Release
MINNEAPOLIS – A 13-count indictment charges three defendants with conspiracy to commit wire fraud, wire fraud, and money laundering of proceeds derived from fraud, announced U.S. Attorney Andrew M. Luger.According to court documents, between March 2018 and July 2024, Shawn Ashley Grygo, 37, of Forest Lake, Minnesota, Shantel Rene Magadanz, 34, of Stacy, Minnesota, and Heather Lynn Heim, 46, of St. Paul, Minnesota, devised and carried out a health care fraud scheme to systematically overbill for drug and alcohol treatment services. The defendants used an outpatient drug and alcohol treatment center called Evergreen Recovery, Inc. to defraud Medicaid and other health care programs by billing for treatment that was not provided, services that were not eligible for reimbursement, and billing for treatment services clients were required to attend as a mandatory condition of remaining in free housing provided as a kickback.
According to court documents, in order to maximize the amount of fraudulent Medicaid claims, the defendants used free housing in Evergreen-controlled “sober” homes as a kickback to induce clients to enroll and remain in Evergreen Recovery treatment so that the defendants could use those clients’ names and identifying information to overbill Medicaid. In order to induce Medicaid-eligible patients to enroll in the program, the defendants recruited people from homeless shelters and encampments, residential drug treatment programs, and county probation offices looking for places to put people being released from jail. As part of their conspiracy scheme, the defendants told clients at intake – and repeatedly throughout their stay – that their entitlement to free housing was contingent on their attendance at least five group counseling sessions per week and a weekly individual session with their primary counselor. If a client’s attendance fell short of the requirement, the defendants and others threatened clients with being locked out of free housing and having their belongings put on the curb, all in order to compel utilization of services.
According to court documents, the conspiracy scheme also involved fraudulent practices designed to facilitate overbilling for group counseling, one-on-one counseling, and treatment coordination services.
As part of their scheme, the defendants created and caused to be created electronic health record chart entries weeks or months after the purported date of services. On at least one occasion, the defendants and others stayed at the office all night before a visit by licensing regulators in order to create hundreds of untimely chart entries. The defendants also hired Peer Coaches and directed them to log their time and activities in a manner that misrepresented the circumstances under which they were interacting with clients in order to facilitate systematic overbilling.
Grygo, Magadanz, and Heim are each charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud. Grygo is also being charged with three counts of money laundering. Grygo is expected to make her initial appearance on Monday, December 23, 2024. Magadanz and Heim made their initial appearances on December 19, 2024, and were released on conditions, including a condition prohibiting contact with former clients and employees of Evergreen Recovery and its related entities.
This case is the result of an investigation conducted by the FBI and the Health and Human Services – Office of Inspector General. The U.S. Attorney’s Office would also like to thank the Medicaid Fraud Control Unit (MFCU) at the Attorney General’s office for their assistance in this matter.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Paul Man Pleads Guilty to Armed Robbery of Postal EmployeesRead the Press Release
ST. PAUL, Minn. – A St. Paul man has pleaded guilty to the armed robbery of U.S. Postal Service employees on two separate occasions, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 18, 2023, Rubin David Adams, 26, assisted another person who approached a letter carrier in Edina, pointed a handgun at them, and demanded the “mailbox key,” which the victim did not have. Instead, the victim handed over two sets of USPS vehicle keys. The following day, Adams himself approached another USPS letter carrier in Brooklyn Center. Adams pointed a handgun at the victim’s head, demanded and then stole two USPS mailbox keys. Mailbox keys are valuable to criminals who use them to steal mail, cash, checks, and other financial instruments. Mailbox keys are the property of the USPS, and it is a federal offense for an unauthorized person to possess one.
Adams pleaded guilty today to two counts of armed robbery of a mail carrier in U.S. District Court before Judge Eric C. Tostrud. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service, the FBI, Hennepin County Violent Offenders Task Force, Edina Police Department, the Brooklyn Center Police Department, the St. Louis Park Police Department, and the Minnesota Alcohol and Gambling Enforcement Division.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
Hastings Man Charged in Child Exploitation CaseRead the Press Release
MINNEAPOLIS – A Hastings man has been charged with multiple counts related to the production and possession of child sexual abuse material, announced United States Attorney Andrew M. Luger.
According to court documents, on May 19, 2022, Hunter James Geidl, 27, knowingly possessed a video file of a minor victim engaging in sexually explicit activities. From approximately July 29, 2022, until March 22, 2024, Geidl employed and used minor victims to engage in sexually explicit conduct for the purpose of producing sexually explicit video images.
Investigators believe there may be other victims relevant to this investigation. If your minor dependent(s) have been in contact with Hunter James Geidl, please contact the FBI at 1-800-CALL-FBI (800-225-5324) or tips.fbi.gov.
The indictment charges Geidl with three counts of production and attempted production of child pornography and one count of possession of child pornography. Geidl made his initial appearance in U.S. District Court on December 13, 2024. He was ordered to remain in custody pending further proceedings at his detention hearing today by Magistrate Judge David T. Schultz.
This case is the result of an investigation conducted by the FBI with assistance from the Hastings Police Department. It was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Stillwater Felon Charged with Illegal Possession of Explosives, AmmunitionRead the Press Release
MINNEAPOLIS – A Stillwater man has been indicted and charged with possession of unregistered firearms and possession of explosives, firearms, and ammunition, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 2, 2024, Wayne Robert Lund, 46, illegally possessed eight destructive devices not registered to him in the National Firearms Registration and Transfer Record. He was also found in possession of explosives and hundreds of rounds of ammunition. Because Lund has prior felony convictions in Ramsey and Anoka Counties, he is prohibited under federal law from possessing firearms, explosives, or ammunition at any time.
The indictment charges Lund with one count of possession of unregistered firearms, one count of possessing explosives as a felon, one count of possessing firearms as a felon, and one count of possession of ammunition as a felon. He made his initial appearance in U.S. District Court on December 11, 2024, before Magistrate Judge Dulce J. Foster. He was ordered to remain in custody pending further proceedings at his detention hearing today by Magistrate Judge David T. Schultz.
This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oak Park Heights Police Department, the Stillwater Police Department, the Saint Paul Police Department, the Saint Croix County (Wisconsin) Sheriff’s Department, and with assistance from the U.S. Marshals Service.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Inver Grove Heights Man Indicted on Multiple Child Exploitation ChargesRead the Press Release
MINNEAPOLIS – An Inver Grove Heights man has been charged with multiple counts related to the production of child sexual abuse material and for coercing minors to engage in unlawful sexual conduct, announced United States Attorney Andrew M. Luger.
According to court documents, Samuel Eric Snell, 45, a.k.a. “Storm Blackwood” and “Candy Man Sam MN,” was a member of an online community on the gaming platform Discord that sold “services” to adult customers. Specifically, minor girls, referred to as “kittens,” would sell online companionship to adults, referred to as “masters,” in exchange for monetary payments, usually made through CashApp or as in-kind gifts. These Discord channel names included “Fun Time Kitty Klub,” “Pretty Kitty Hangout,” “Safe Kitten Konnection,” and “Kitten Server Name.” Direct messages obtained from Snell’s Discord account show he actively solicited illicit images from his chat partners—many of whom self-identified as minors and indicated that they were grappling with gender identity, sexuality, and mental health concerns.
In general, Snell followed the same script when soliciting images from these minors, beginning with a request for photos of the minors’ inner thigh and then progressing to their pubic region. In several instances, Snell solicited and received sexually-explicit images of minor victims in an intent to groom them to eventually produce child sexual abuse material. Snell also sent his minor victims electronic sex toys that he controlled remotely, and then solicited and received depictions of them using the devices. On at least two occasions, Snell took a minor to a hotel, paid them $100 to engage in sexual intercourse, and provided emergency contraception afterwards.
Investigators believe there may be other victims relevant to this investigation. If your minor dependent(s) have been in contact with Samuel Eric Snell, please contact the FBI at 1-800-CALL-FBI (800-225-5324) or tips.fbi.gov.
The indictment charges Snell with six counts of production of child pornography and two counts of coercing a minor to engage in prostitution. Snell made his initial appearance in U.S. District Court yesterday before Magistrate Judge Dulce J. Foster. A detention hearing has been scheduled for December 17, 2024.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, with assistance from the Inver Grove Heights Police and Woodbury Police Departments.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Man Indicted for Two Violent RobberiesRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged with four crimes related to two separate armed robberies, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 7, 2024, Korey Maurese Hale, 25, brandished a Mossberg 715T .22 caliber rifle while robbing a drug store. The next day, on June 8, 2024, Hale brandished the same firearm while robbing a bank.
For his conduct, Hale is charged with one count of Hobbs Act robbery, one count of armed bank robbery, and two counts of brandishing a firearm during a bank robbery. He made his initial appearance on December 3, 2024, in U.S. District Court before Magistrate Judge Dulce J. Foster.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Matthew D. Forbes is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Edina Financial Adviser Sentenced to over Two Years in Prison for Stealing $2.1 Million from ClientsRead the Press Release
ST. PAUL, Minn. – An Edina financial adviser has been sentenced to 30 months in federal prison, two years of supervised release, and ordered to pay restitution in the amount of $2,104,395, in a wire fraud scheme where millions in client investment funds were misappropriated, announced United States Attorney Andrew M. Luger.
According to court documents, Kristi Margaret Berge, 48, was the founder and CEO of Keep Safe Investments, LLC, or “KSI Financial,” a financial planning and investment services firm. Berge also co-owned and operated J&K Connect LLC, a company that invested in real estate through buying, renovating, and re-selling properties. Berge maintained offices for her companies in Edina, Minnesota. Berge is registered as an investment adviser with the Financial Industry Regulatory Authority (FINRA) and licensed as an investment adviser with the State of Minnesota.
According to court documents, from June 2020 through February 2023, Berge fraudulently misappropriated approximately $2.1 million from some of her clients’ accounts by falsely representing to clients that she would maintain their money in safe and secure investment accounts, such as individual retirement accounts and 401(k) retirement savings plans. Instead, Berge fraudulently misappropriated the money by repeatedly withdrawing client funds in varying amounts between $5,000 and $220,000 and depositing the funds into bank accounts she controlled. Berge then used the clients’ funds to purchase multiple properties in Edina for her real estate business. Berge tried to conceal her fraud by falsely labeling her illicit withdrawals as “management” or “administrative” fees and by creating fabricated records to give the false impression that she had authorization to withdraw clients’ investment funds.
Berge pleaded guilty to one count of wire fraud earlier this year, and was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert, Harry M. Jacobs, and Craig Baune prosecuted the case.
Minneapolis Man Sentenced to 24 Years in Prison for Kidnapping, Bank Fraud, and Aggravated Identity TheftRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 288 months in prison, five years of supervised release, and was ordered to pay $5,000 in restitution for kidnapping, bank fraud, and identity theft after robbing two women at gunpoint and stealing from another, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial, on September 13, 2022, at approximately 7:30 a.m., Raphael Raymond Nunn, 58, approached a woman in Arden Hills who had just parked her vehicle. Nunn, who was wearing a mask, gloves, and carrying a handgun, forced the victim at gunpoint to drive him to an ATM in Minneapolis and withdraw cash for his own benefit. Nunn then ordered the victim to drive to Matthews Park, where he then ordered her to give him her keys so he could get away.
According to court documents, Nunn was later captured on surveillance videos from surrounding businesses and seen exiting the victim’s vehicle, removing his hood and mask, and entering a nearby corner grocery store. Four days later, Nunn returned to the store driving a vehicle registered in his name which led to the discovery of his address, where he was ultimately arrested on September 22, 2022
A search of his residence recovered evidence from the kidnapping and revealed Nunn had stolen from a second victim and robbed a third at gunpoint before fraudulently using the victims’ stolen credit cards to obtain money from their bank accounts.
On May 23, 2024, Nunn was convicted by a federal jury on one count of kidnapping, two counts of bank fraud, and two counts of aggravated identity theft following a four-day trial. He was sentenced last week in U.S. District Court by Judge Eric C. Tostrud. In handing down the sentence, Judge Tostrud commented that Nunn was “incorrigible,” and issued an upwards variance in his sentence noting that Nunn “posed an escalating danger to the public.”
This case is the result of an investigation conducted by the Ramsey County Sheriff’s Office, Oak Park Police Department, the City of Hudson Police Department, and the FBI.
Assistant U.S. Attorneys Albania Concepcion and Lauren O. Roso prosecuted the case.
Glenwood Man Indicted for Production, Receipt of Child Sexual Abuse MaterialRead the Press Release
MINNEAPOLIS – A Glenwood man has been indicted on multiple counts related to the production and receipt of child sexual abuse material, announced U.S. Attorney Andrew M. Luger.
According to court documents, between approximately January 21, 2020, until June 3, 2024, Patrick Wayne Baker, 51, surreptitiously recorded six minors for the purpose of creating sexually explicit images.
The indictment charges Baker with two counts of production of child pornography and three counts of receipt of child pornography. Baker made his initial appearance in U.S. District Court before Magistrate Judge Tony N. Leung on November 26, 2024.
This case is the result of an investigation conducted by the Pope County Sheriff’s Office, the Internet Crimes Against Children Task Force, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney William C. Mattessich is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of la
Ramsey County Man Pleads Guilty to Illegal Possession of Firearm and CarjackingRead the Press Release
MINNEAPOLIS – A Ramsey County man has pleaded guilty to illegal possession of a firearm and carjacking, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 30, 2022, Ricardo Rydell Walker, Jr., 21, took a black 2021 Toyota Highlander by force and with threat of violence and bodily harm. Walker and others approached Victim A as they were walking from the vehicle to their apartment building, and tripped Victim A as they tried to escape. Walker then hit Victim A on the left side of the head with a handgun.
Six days later, on July 6, 2022, Walker was arrested in Maplewood, MN, in a stolen car, while in possession of a Springfield Hellcat 9mm.
Walker pleaded guilty yesterday in U.S. District Court to one count of carjacking. He also admitted to aiding and abetting the 2021 carjackings of a black 2019 Volkswagen Atlas and a gray 2015 Mazda 3, and the carjacking of a gray Nissan Rogue on June 24, 2024. In each case, Walker and others used the threat of violence and intimidated the victims with firearms.
Walker also pled guilty to one count of receipt of a firearm while under indictment for a felony. He was arraigned today in U.S. District Court by Judge Katherine M. Menendez.
This case is the result of an investigation conducted by the St. Paul Police Department, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and the Ramsey County Sheriff’s Office, with assistance from the FBI.
Assistant U.S. Attorneys William C. Mattessich and Mary Riverso are prosecuting the case.
Indiana Man Pleads Guilty in Twin Cities Fentanyl Distribution ConspiracyRead the Press Release
ST. PAUL, Minn. – An Indiana man has pleaded guilty in a drug trafficking conspiracy that distributed fentanyl throughout the Twin Cities and surrounding areas, announced U.S. Attorney Andrew M. Luger.
According to court documents, between August 2022 through December 2023, Da’Shawn Natori Domena, 25, conspired with his co-defendants to distribute fentanyl in Minnesota. The co-conspirators frequently traveled to Phoenix to obtain fentanyl pills from suppliers, hid the pills inside stuffed animals, and mailed them to addresses in and around the Twin Cities. Law enforcement in Dakota, Ramsey, and Washington counties became aware of the trafficking and initiated a joint investigation, which resulted in the seizure of six packages containing over 30,000 grams of fentanyl pills.
Domena pleaded guilty in U.S. District Court before Judge Jeffrey M. Bryan to one count of conspiracy to distribute fentanyl. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by U.S. Postal Inspection Service, Homeland Security Investigations, the Dakota County Drug Task Force, the Washington County Drug Task Force, and the Ramsey County Violent Crime Enforcement Team.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
Federal Jury Finds Human Smugglers Guilty in Deaths of Family of FourRead the Press Release
A federal jury in the District of Minnesota convicted two men today for their roles in a human smuggling venture that resulted in the deaths of a family of four Indian nationals, including two children.
According to evidence presented at trial, between Dec. 12, 2021, and Jan. 19, 2022, Harshkumar Ramanlal Patel, 29, also known as Dirty Harry and Harry Patel, and Steve Anthony Shand, 50, conspired to smuggle dozens of migrants across the border of Canada and into the United States. Patel and Shand were part of a large-scale human-smuggling operation that brought Indian nationals to Canada on student visas and then smuggled them into the United States. The defendants’ roles in the smuggling operation included the coordination and transportation of people from Manitoba, Canada, into the United States. Specifically, Patel worked with co-conspirators in Canada to organize the logistics of smuggling trips, while Shand was instructed when and where to pick up migrants just south of the Canadian border in the United States. He then drove them to Chicago. They were paid for their roles in the conspiracy and disregarded the risks posed by the cold weather at the northern border.
According to evidence presented at trial, on Jan. 19, 2022, Homeland Security Investigations (HSI) special agents responded to a request for assistance from the U.S. Border Patrol (USBP) based out of Pembina, North Dakota. USBP initiated a traffic stop on a white-colored, 15-passenger van that Shand was driving. The stop occurred less than one mile south of the U.S.-Canadian border in a rural area between the U.S. ports of entry located at Lancaster, Minnesota, and Pembina. A short while later, law enforcement encountered five Indian nationals approximately a quarter mile south of the Canadian border walking in the direction of where Shand had just been arrested. They explained that they had walked across the border expecting to be picked up by someone. The group estimated they had been walking around for over seven hours.
One of the members of the group was in possession of a backpack that did not belong to him. He told officers that he was carrying the backpack for a family of four Indian nationals that had walked with his group but had become separated during the night. Temperatures that night had plummeted to 36 degrees below zero. The backpack contained children’s clothes, a diaper, toys, and some children’s medication.
That family was found dead a short time later. As proven at trial, later the same day, USBP received a report from the Royal Canadian Mounted Police (RCMP) that four bodies — two adults and two young children — were found frozen just inside the Canadian side of the international border. As proven at trial, Patel and Shand were paid to smuggle the family into the United States.
Following a five-day trial, the jury found Patel and Shand each guilty of four counts of human smuggling. The defendants face a maximum penalty of 20 years in prison on the first and second counts and a maximum penalty of 10 years in prison on the third and fourth counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Andrew M. Luger for the District of Minnesota; Special Agent in Charge Jamie Holt of the HSI St. Paul Field Office; and Chief Patrol Agent Scott D. Garrett of the USBP Grand Forks Sector made the announcement.
HSI and USBP conducted the investigation. The RCMP and Justice Department’s Office of International Affairs provided assistance.
Trial Attorney Ryan Lipes of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael McBride for the District of Minnesota are prosecuting the case.
Federal Jury Finds Human Smugglers Guilty in Death of FourRead the Press Release
FERGUS FALLS, Minn. – Two individuals have been convicted on four counts of human smuggling announced U.S. Attorney Andrew M. Luger.
“This trial exposed the unthinkable cruelty of human smuggling and the lengths that traffickers will go to maximize profit – putting men, woman and little children in extraordinary peril, ultimately leading to the tragic deaths of an entire family,” said U.S. Attorney Luger. “Today, we have brought those responsible to justice. For that, I thank the tenacious work of all of the law enforcement officers involved, including the prosecution team from my office and the Department of Justice.”
According to evidence presented at trial, between December 12, 2021, and on January 19, 2022, Harshkumar Ramanlal Patel, a.k.a. “Dirty Harry” or “Harry Patel,” 29, and Steve Anthony Shand, 50, conspired to smuggle dozens of people across the border of Canada and into the United States. Patel and Shand were part of a large-scale human-smuggling operation that brought Indian nationals to Canada on student visas and then smuggled them into the United States. The defendants’ roles in the smuggling operation included the coordination and transportation of people from Manitoba into the United States. Specifically, Patel worked with co-conspirators in Canada to organize the logistics of smuggling trips, while Shand was instructed when and where to pick up migrants just south of the Canadian border in the United States. He then drove them to Chicago. They were paid for their roles in the conspiracy and disregarded the risks posed by the cold weather at the northern border.
"This tragic case is a stark reminder of the horrific realities of human smuggling. The unimaginable suffering endured by this family underscores the urgent need for robust law enforcement partnerships,” said Homeland Security Investigations (HSI) St. Paul Special Agent in Charge Jamie Holt. “These partnerships are vital in our fight against human smuggling, as they allow us to combine resources, expertise, and intelligence. By collaborating with local, state, federal, and international agencies, we can more effectively dismantle smuggling networks, bring perpetrators to justice, and provide the necessary support to victims. Working together enhances our ability to protect the most vulnerable and ensures that no family suffers such a devastating fate again."
According to evidence presented at trial, on January 19, 2022, law enforcement agents with Homeland Security Investigations responded to a request for assistance from the U.S. Border Patrol (USBP) based out of Pembina, North Dakota. USBP initiated a traffic stop on a white-colored, fifteen-passenger van that Shand was driving. The stop occurred less than one mile south of the U.S./Canadian border in a rural area between the official ports of entry located at Lancaster, Minnesota, and Pembina, North Dakota. A short while later, law enforcement encountered five Indian nationals approximately a quarter mile south of the Canadian border walking in the direction of where Shand had just been arrested. They explained that they had walked across the border expecting to be picked up by someone. The group estimated they had been walking around for over seven hours.
One of the members of the group was in possession of a backpack that did not belong to him. He told officers that he was carrying the backpack for a family of four Indian nationals that had walked with his group but had become separated during the night. Temperatures that night had plummeted to -36 degrees below zero. The backpack contained children’s clothes, a diaper, toys, and some children’s medication.
That family was found dead a short time later. As proven at trial, later the same day, January 19, 2022, USBP received a report from the Royal Canadian Mounted Police that four bodies – two adults and two young children – were found frozen just inside the Canadian side of the international border. As proven at trial, Patel and Shand were paid to smuggle them into the United States.
Following a five-day trial in U.S. District Court before Judge John R. Tunheim, a federal jury found Patel and Shand each guilty on four counts related to human trafficking of foreign nationals.
“As we saw in this case involving a family of four who lost their lives attempting to illegally cross the border, human smuggling is very dangerous. I’m glad that this case came to a successful law enforcement resolution. As a reminder, anyone who puts their lives in the hands of a smuggler, is putting their life, and the lives of their family at risk,” Chief Patrol Agent Scott D. Garrett said.
This case is the result of an investigation conducted by USBP and HSI.
Assistant U.S. Attorney Michael McBride and Department of Justice Human Rights and Special Prosecutions Trial Attorney Ryan Lipes tried the case.
Federal Jury Convicts Minnesota Man of Advertising and Distributing Child Sexual Abuse Material over the Dark WebRead the Press Release
WASHINGTON — A federal jury convicted a Minnesota man yesterday for advertising, distributing, and possessing material depicting the sexual abuse of children.
According to court documents and evidence presented at trial, Craig James Myran, 47, of Bemidji, was an active participant on a website on the dark web that was dedicated to discussing and trafficking in child sexual abuse material. For years, Myran used an account with a unique username to make over a thousand posts on this site, including at least one post in which he requested specific files of child sexual abuse material from other users, and another post in which he distributed files of child sexual abuse material to other users. FBI special agents executed a search warrant on Myran’s apartment in Bemidji on Dec. 8, 2022, where they found numerous hard drives and a cell phone. A forensic examination of these devices uncovered evidence tying Myran to his unique account on the dark web site — including files of the child sexual abuse material that he shared and requested on the website, as well as a message directed to his unique alias — and thousands of other images of child sexual abuse material.
A federal jury found Myran guilty after a three-day trial on two counts of advertising child pornography, one count of distributing child pornography, and one count of possessing child pornography. Myran faces a minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison on each count of advertising child pornography, a minimum penalty of five years in prison and a maximum penalty of 20 years in prison on the count of distributing child pornography, and a maximum penalty of 20 years in prison on the count of possessing child pornography. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Andrew M. Luger for the District of Minnesota; and Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office made the announcement.
The FBI Minneapolis Field Office is investigating the case.
Trial Attorney William G. Clayman of the Criminal Division's Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Green for the District of Minnesota are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Jury Convicts Bemidji Man of Distributing Child Sexual Abuse Material over the Dark WebRead the Press Release
DULUTH, Minn. — A federal jury convicted a Minnesota man for advertising, distributing, and possessing material depicting the sexual abuse of children, announced U.S. Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, Craig James Myran, 47, of Bemidji, Minnesota, was an active participant on a website on the dark web that was dedicated to discussing and trafficking in child sexual abuse material. For years, Myran used an account with a unique username to make over a thousand posts on this site, including at least one post in which he requested specific files of child sexual abuse material from other users, and another post in which he distributed files of child sexual abuse material to other users. FBI law enforcement agents executed a warrant to search Myran’s apartment in Bemidji on Dec. 8, 2022, where they found numerous hard drives and a cell phone. A forensic examination of these devices uncovered evidence tying Myran to his unique account on the dark web site — including files of the child sexual abuse material that he shared and requested on the website, as well as a message directed to his unique alias — and thousands of other images of child sexual abuse material.
A federal jury found Myran guilty yesterday after a three-day trial on two counts of advertising child pornography, one count of distributing child pornography, and one count of possessing child pornography. A sentencing hearing will be scheduled at a later date.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI.
DOJ Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Green for the District of Minnesota prosecuted the case.
Eden Prairie Man Sentenced to over Seven Years in Prison for COVID Relief Fraud, Aggravated Identity Theft, and Money LaunderingRead the Press Release
ST. PAUL, Minn. – An Eden Prairie man has been sentenced to 87 months in federal prison, three years of supervised release, and was ordered to pay restitution for fraudulently applying for more than $2.1 million in COVID-19 relief funds and then spending those proceeds on himself, announced U.S. Attorney Andrew M. Luger.As proven at trial, between March and May 2020, Harold Bennie Kaeding, 75, applied for at least $2,182,625 in loans through the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (EIDL) Program. Kaeding used the name of his own close family members to submit the loan applications in the names of six different purported corporate entities. But these entities were either defunct or not even in existence when the pandemic began, trial evidence showed. None of the businesses had filed tax returns or reported the payment of wages to a single employee for calendar years 2019 and 2020. Kaeding instead fabricated tax documents, manufactured bank statements, and submitted other records to ensure the applications appeared legitimate. These false statements to lenders manufactured the number of employees a given entity employed, the amount of average monthly payroll expenses, and false statements about the intended use of the loan proceeds.
As a result of his material falsehoods and omissions, Kaeding initially received approximately $1,642,670 in relief funds before some banks detected irregularities and clawed back some of the money. This left Kaeding with $658,490 in fraud proceeds, which he transferred to bank accounts—often opened in the names of close family members—that he controlled. Among other things, Kaeding used the money to get his personal residence out of impending foreclosure, purchase an SUV, and stockpile more than $80,000 in cash. In early 2021, Kaeding fled to Colombia after learning he was under investigation. Law enforcement eventually located Kaeding and successfully deported him back to the United States to face prosecution.
Following a ten-day trial in August 2024, Kaeding was convicted by a federal jury on three counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering. He was sentenced last Friday, November 15, 2024, by Judge Eric C. Tostrud in U.S. District Court.
This case is the result of an investigation conducted by the FBI and IRS—Criminal Investigation. Assistant U.S. Attorneys Jordan L. Sing and Robert M. Lewis prosecuted the case.
Inmate Receives 15 Years in Methamphetamine Distribution Conspiracy Inside Stillwater PrisonRead the Press Release
ST. PAUL, Minn. – An inmate has been sentenced to 180 months in prison followed by 10 years of supervised release for conspiring with a corrections officer to distribute methamphetamine inside the Stillwater prison, announced United States Attorney Andrew M. Luger.
According to court documents, Axel Rene Kramer, 37, an inmate who is currently serving a 288-month sentence for second-degree murder, conspired with Faith Rose Gratz, 26, a former Minnesota Correctional Facility (MCF) – Stillwater corrections officer, to distribute methamphetamine within MCF – Stillwater, which is Minnesota’s largest high-security prison facility. As part of the conspiracy, Kramer obtained wholesale quantities of prepackaged methamphetamine from sources of supply outside the prison. Kramer and another co-conspirator inmate worked with drug sources of supply to arrange meet-up times and locations where Gratz would pick up the drug packages. Gratz used her position as a guard to smuggle the drugs into the prison and to provide the drugs to Kramer. She then transferred the drugs to Gratz in the course of performing her prison guard duties. She participated in the illegal scheme approximately six times. Gratz also smuggled into the prison multiple cell phones that she provided to Kramer. Kramer used the cell phones to communicate with people inside and outside the prison and to facilitate his drug distribution network from within the prison.
According to court documents, Kramer and Gratz exchanged hundreds of text messages with each other. The messages included communications about the drug distribution conspiracy as well as discussions about their romantic relationship. Gratz also warned Kramer about upcoming searches of inmates’ cells.
On January 5, 2024, Kramer pleaded guilty to one count of conspiracy to distribute methamphetamine. He was sentenced on November 12, 2024, by Judge Eric C. Tostrud in U.S. District Court. On November 15, 2024, Judge Tostrud sentenced Gratz to 27 months in prison followed by two years of supervised release.
This case is the result of an investigation conducted by the Bayport Police Department, Minnesota Department of Corrections, and the FBI.
Assistant U.S. Attorneys Harry M. Jacobs and Matthew D. Evans prosecuted the case.
Drug Trafficker Sentenced to 13 Years in Prison in Twin Cities Fentanyl Distribution ConspiracyRead the Press Release
ST. PAUL, Minn. – A Twin Cities felon has been sentenced to 160 months in prison followed by five years of supervised release in a drug trafficking conspiracy that distributed fentanyl throughout Minnesota and the surrounding region, announced U.S. Attorney Andrew M. Luger.
According to court documents, between August 2022 through December 2023, Cornell Montez Chandler, Jr., 25, conspired with others to distribute fentanyl throughout Minnesota. Chandler frequently flew from the Twin Cities to Phoenix, Arizona, to buy fentanyl from one or more suppliers and ship it through the U.S. Postal Service to addresses in and around the Twin Cities for distribution. He admitted that he and his co-conspirators placed fentanyl pills in plastic bags that were then concealed in stuffed animals; that those packages were disguised as birthday presents; and that conspirators lined the interiors of the packages with dog treats in an attempt to prevent drug-sniffing dogs from alerting to them.
In January and February 2023, law enforcement in Dakota, Ramsey, and Washington counties became aware of the trafficking and initiated a joint investigation, which resulted in the seizure of six packages containing over 30,000 grams of fentanyl pills.
On June 18, 2024, Chandler pleaded guilty to one count of conspiracy to distribute fentanyl. He was sentenced yesterday in U.S. District Court by Judge Jeffrey M. Bryan.
This case is the result of an investigation conducted by the Dakota County Drug Task Force, Washington County Sheriff’s Office, Ramsey County Violent Crime Enforcement Team, U.S. Postal Inspection Service, and Homeland Security Investigations.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
Denver Man Sentenced to Five Years in Prison for Role in $300 Million Nationwide Telemarketing Fraud SchemeRead the Press Release
MINNEAPOLIS – A Denver man has been sentenced to 60 months in prison, followed by 2 years of supervised release for orchestrating a $300 million nationwide telemarketing fraud scheme and committing tax evasion, announced U.S. Attorney Andrew M. Luger. He was also ordered to pay $19,051,667 in restitution to the victims of his fraud scheme and $1,490,011 in restitution to the IRS on his tax evasion case.
According to court documents, for more than a decade, Henry Aragon, 54, of Golden, Colorado, devised and participated in a large, nationwide telemarketing fraud scheme involving magazine subscription sales. Aragon and his co-defendants perpetuated a conspiracy to defraud over 150,000 consumer-victims across the country, many of whom were older or otherwise susceptible to fraud. The scheme was carried out by a network of dozens of fraudulent magazine sales companies located across the United States and in Canada. The companies operated telemarketing call centers from which their employees made calls using deceptive sales scripts designed to defraud victim consumers by inducing them—through a series of lies and misrepresentations—into making large or repeat payments to the companies.
Aragon and his co-conspirators pressured consumer-victims into making payments related to purported magazine subscriptions. Many of the defendants used a fraudulent “renewal” script in which the telemarketers falsely claimed to be calling from the consumer-victim’s existing magazine subscription company about an existing magazine subscription package. The telemarketers often claimed—falsely—to be calling with an offer to reduce the monthly cost of an existing subscription. In reality, the company had no existing relationship with the magazines, and they were actually fraudulently signing the consumer-victims up for expensive and entirely new magazine subscriptions.
The result was that a single consumer went from having one magazine subscription to, at times, more than a dozen, all with different fraudulent magazine companies, each “sold” under the auspices of “reducing” the consumer’s monthly rate. Over the course of the scheme, Aragon and his companies defrauded thousands of victims and collected over $19 million from victims.
On July 5, 2022, Aragon pleaded guilty to conspiracy to commit mail and wire fraud, and tax evasion. He was sentenced on November 7, 2024, by John R. Tunheim in U.S. District Court.
Aragon also evaded paying taxes on the money he and his fraudulent telemarketing company made. “By evading his tax liability, Aragon unfairly shifted the tax burden to honest American taxpayers to fund vital services such as education and infrastructure,” said Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “IRS-CI special agents identified more than $2 billion in tax fraud last fiscal year, and we will remain committed to holding tax cheats accountable.”
The case was the result of an investigation conducted by the IRS Criminal Investigation, U.S. Postal Inspection Service, and the FBI, with assistance from the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
The case was handled by Assistant U.S. Attorneys Harry M. Jacobs, Joseph H. Thompson, Matthew S. Ebert, Melinda A. Williams, and Garrett S. Fields.
Shakopee Man Sentenced to 13 Years in Prison for Trafficking MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Shakopee man has been sentenced to 160 months in prison followed by five years of supervised release for possession and distribution of methamphetamine, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, law enforcement executed a series of controlled buys of methamphetamine from Saul Rodriguez Pineda, 40, on three separate occasions between September and October 2022. On October 12, 2022, law enforcement searched the residence where Rodriguez Pineda was staying in Shakopee, Minnesota, and found 31 pounds of methamphetamine in Rodriguez Pineda’s yard as well as a liquid methamphetamine conversion lab. Law enforcement also found numerous items related to drug trafficking inside the residence.
Following a three-day trial in March 2024, Pineda was convicted on three counts of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine. On October 30, 2024, Pineda was sentenced by Judge Donovan W. Frank in U.S. District Court.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Minnesota Bureau of Criminal Apprehension, Minnesota River Valley Drug Task Force, and the Shakopee Police Department.
Assistant U.S. Attorneys Raphael B. Coburn and Allen A. Slaughter presented the matter at trial.
Bloods Gang Member Sentenced to Seven Years in Prison for Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A Brooklyn Center man has been sentenced to 84 months in prison followed by three years of supervised release for illegal possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, in the early morning hours of September 28, 2019, Dante Jospeh Tyus, 30, a member of the Minneapolis Bloods street gang, was stopped by the Minnesota State Patrol for driving erratically. Tyus, who showed obvious signs of intoxication, was arrested for driving under the influence. Tyus’s vehicle was towed and impounded. After being booked at the Hennepin County Jail, Tyus made a series of recorded calls expressing concern to his girlfriend and enlisting her assistance in recovering a firearm that was hidden inside his vehicle. Law enforcement obtained a warrant to search the vehicle and recovered a 9mm semiautomatic handgun hidden inside a door panel.
Because Tyus has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
On April 19, 2024, following a four-day trial, Tyus was found guilty on one count of possessing a firearm as a felon. He was sentenced last week in U.S. District Court by Judge Susan Richard Nelson.
This case is the result of an investigation conducted by the FBI, U.S. Postal Inspection Service, Minnesota State Patrol, and the Minneapolis Police Department.
Assistant U.S. Attorneys Carla J. Baumel and Allen A. Slaughter prosecuted the case.
Northern Minnesota Man Indicted for “Cryptojacking” SchemeRead the Press Release
MINNEAPOLIS – A northern Minnesota man has been indicted for an illegal “cryptojacking” scheme that caused significant financial losses, announced U.S. Attorney Andrew M. Luger.
According to court documents, in February 2020, Joshua Paul Armbrust, 44, of Orr, Minnesota, resigned from his employment at Digital River, a Minnetonka-based global e-commerce and payment processing company. After leaving his job, between December 2020 and May 2021, Armbrust engaged in a cryptojacking scheme using accounts belonging to his former employer. Cryptojacking is a form of cybercrime where an unauthorized party uses someone else's computing resources to mine cryptocurrency, such as Bitcoin or Ethereum, by leveraging the victim's hardware, which can lead to reduced system performance, increased energy consumption, and higher operating costs.
As part of the scheme, Armbrust remotely accessed the company’s Amazon Web Services (AWS) account on multiple occasions without authorization and utilized AWS computers to mine Ethereum cryptocurrency. This unauthorized access resulted in substantial costs for the company, totaling over $45,000. The mined Ethereum was directed into a digital wallet and subsequently transferred to two Coinbase accounts registered solely in Armbrust’s name. Armbrust then liquidated the mined Ethereum, totaling over $7,000, and transferred the proceeds to his Wells Fargo banking account.
The indictment charges Armbrust with one count of computer fraud. Armbrust made his initial appearance on November 1, 2024, in U.S. District Court before Magistrate Judge John F. Docherty.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Man Sentenced to Prison for Insider Trading SchemeRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 18 months in federal prison, followed by two years of supervised release, and 320 hours of community service for an insider trading conspiracy involving nonpublic negotiations for the acquisition of a medical device company valued at $1.6 billion, announced First Assistant U.S. Attorney Lisa D. Kirkpatrick.
According to evidence presented at trial, beginning in January 2018 through at least August 2020, Doron “Ron” Tavlin, 69, of Minneapolis, and Afshin “Alex” Farahan, 58, of Los Angeles, engaged in an insider trading conspiracy. The conspiracy involved nonpublic information about the acquisition of Mazor Robotics, an Israeli-based company that specialized in robotics for spinal procedures, by Medtronic, Inc., an Ireland-based medical device company that primarily operated from its executive headquarters in Minneapolis. Tavlin, while working as vice president of business development at Mazor Robotics, learned material, nonpublic information about Medtronic’s impending acquisition of his company. In violation of federal law and his duty to his former employer, Mazor Robotics, Tavlin tipped this information about the acquisition to his friend, Farahan, and instructed him to buy shares in the company. Tavlin and Farahan knew that Medtronic’s imminent acquisition of Mazor would likely result in an increase in Mazor’s stock price. Farahan used the nonpublic information tipped by Tavlin to quickly buy more than $1 million of Mazor stock throughout August and September 2018. The morning after the secret acquisition was publicly announced, Farahan immediately sold all the stock he had purchased over the preceding weeks based on Tavlin’s illegal tip, which resulted in a profit of over $246,000. According to evidence presented at trial, after the acquisition occurred, Tavlin learned that the Financial Industry Regulatory Authority (FINRA) was investigating certain trades of Mazor securities that occurred prior to the publicly announced acquisition. As part of its inquiry, FINRA asked Tavlin, and other insiders who knew about the secret acquisition negotiations, whether he knew any of the parties who traded in Mazor securities leading up to the public announcement. In January 2019, Tavlin responded to FINRA’s inquiry by falsely denying that he recognized any names on a list of persons and entities that purchased Mazor securities, which included Farahan.
According to evidence presented at trial, the insider trading conspiracy included an agreement between Tavlin and Farahan that Farahan would pay money to Tavlin in exchange for the material, nonpublic information.
On February 16, 2024, Tavlin was found guilty on one count of conspiracy to commit insider trading and ten counts of securities fraud and aiding and abetting securities fraud following a nine-day trial. He was sentenced yesterday in U.S. District Court by Judge Donovan W. Frank.
Farahan pleaded guilty on August 4, 2022, to one count of conspiracy to engage in insider trading. His sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert, Robert M. Lewis, and William C. Mattessich prosecuted the case.
Eleven Minneapolis Gang Members Charged with RICO Conspiracy, Murder in Aid of Racketeering, and Drug Trafficking OffensesRead the Press Release
A federal grand jury in Minneapolis returned an 18-count indictment yesterday against 11 alleged members of the Lows — a violent Minneapolis street gang — for crimes including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving murder, attempted murder, gun trafficking, and drug trafficking.
“According to the indictment, these defendants are leaders, organizers, and members of the Lows street gang, a violent gang that allegedly committed multiple murders and attempted murders and trafficked in guns and drugs, including fentanyl,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Violent gangs that engage in bloody street wars and peddle deadly drugs endanger our communities. The Criminal Division, along with our local, state, and federal partners, is committed to holding violent criminals accountable, including by bringing racketeering charges.”
“The Lows are an exceptionally violent criminal street gang that has terrorized north Minneapolis for nearly 20 years. Through threats and violence — shootings and murders — the Lows have long sought to establish dominion over large swaths of our city,” said U.S. Attorney Andrew Luger for the District of Minnesota. “My office will continue to respond to gang violence by treating it as the organized criminal activity it is. This indictment is an important step in dismantling a violent street gang that has devastated families and communities in north Minneapolis.”
“More than 100 people lose their lives to gun violence every day in the United States,” said Special Agent in Charge Travis Riddle of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul Field Division. “There will never be a time where this will be considered acceptable. Our ATF agents put forth solid investigative work in this case utilizing crime gun intelligence that without a doubt aided the case announced today. ATF is happy to work alongside each of our partners in this investigation, and we are grateful to the Criminal Division, U.S. Attorney Luger, and the entire team for taking up this challenging RICO case.”
“The charges in this indictment reflect our unwavering commitment to bringing violent criminals to justice,” said Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “For too long, the Lows have inflicted pain and spread fear in north Minneapolis. Together with our law enforcement partners, we are determined to remove this threat from our communities and help restore a sense of security to all who call this city home.”
“Today’s indictment provides a stark reminder that violence and drug trafficking go hand-in-hand,” said Special Agent in Charge Steven T. Bell of the Drug Enforcement Administration (DEA) Omaha Division. “These were not victimless crimes. Communities were hurt. The DEA will continue its unwavering focus to remove threats of violence and hold accountable the individuals responsible for inflicting fear on the streets of Minneapolis.”
“The individuals named in this indictment allegedly engaged in homicide, and illegal drug and firearms trafficking, which created an atmosphere of terror and disrupted countless lives in this community,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Chicago Field Office. “These charges represent a pivotal milestone in our commitment to restore safety and uphold justice in the communities we serve. Working with their federal, state, and local law enforcement partners, IRS-CI special agents will continue to follow every financial trail to dismantle the networks fueling these criminal enterprises. We stand united against the violence and fear that street gangs have inflicted upon our communities in Minneapolis and elsewhere.”
“The Lows, and criminal organizations like them, wreak havoc on our communities, threatening the safety of our communities on a daily basis through their many acts of violence, murder, and narcotics and firearms trafficking,” said Special Agent in Charge Jamie Holt of Homeland Security Investigations (HSI) St. Paul. “HSI St. Paul will continue to foster a strong collaboration with our law enforcement partners to bring an end to the chaos these criminal organizations inflict on our local communities.”
“This multi-count indictment against ranking members of the Lows gang is an excellent example of multiple law enforcement agencies combining their expertise and resources to conduct investigations with the common goal of taking down violent leaders perpetuating street violence involving guns and narcotics,” said Inspector in Charge Bryan Musgrove of the U.S. Postal Inspection Service (USPIS) Denver Division. “These RICO charges aim to remove these allegedly violent offenders from our community. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives.”
As alleged in this indictment, the defendants were members of the Lows criminal street gang, which has been in existence in Minneapolis since approximately 2004. The Lows are primarily active in the northside of Minneapolis. They allegedly traffic in firearms and narcotics, including fentanyl, and use threats, intimidation, and violence to protect their territory, reputation, illicit proceeds, and power.
The indictment charges that the defendants engaged in a pattern of racketeering — that is, unlawful acts of violence, gun trafficking, and narcotics trafficking — for the benefit of the Lows enterprise. These acts include seven alleged murders or attempted murders involving a total of ten victims.
The 11 defendants, all from Minneapolis, have been indicted for the following crimes:
Ashimiyu Alowonle II, 38, also known as Cash, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
Timothy Callender III, 26, also known as Lil’ Tim, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
Glenn Carter III, 23, also known as G5 and Bossman Carter, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Carter is charged with committing a murder on May 14, 2022, as a racketeering act in furtherance of the RICO conspiracy.
Victor Collins, 22, also known as Vic, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; and possessing a firearm a firearm in furtherance of drug trafficking. Collins is charged with committing a murder and an attempted murder on Feb. 27 as a racketeering act in furtherance of the RICO conspiracy.
Damari Douglas, 20, also known as Mari, is charged with RICO conspiracy, being a felon in possession of a firearm, and possession of a machine gun. Douglas is charged with committing a murder on Dec. 3, 2023, as a racketeering act in furtherance of the RICO conspiracy.
Deontae Jackson, 35, also known as Leef, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
Shannon Jackson, 32, also known as Shakedown, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; possessing a firearm in furtherance of drug trafficking; and being a felon in possession of a firearm. Jackson is charged with committing a murder on April 27, 2023, as a racketeering act in furtherance of the RICO conspiracy.
Robert Knights Jr., 19, also known as CMB Rob and Lil’ Rob, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.
Albert Lucas V, 20, also known as Abk Sav, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Lucas is charged with committing multiple murders and an attempted murder on Feb. 27 and May 6, 2021, as a racketeering act in furtherance of the RICO conspiracy.
Kaprice Richards, 23, also known as Kap, is charged with RICO conspiracy and using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death. Richards is charged with committing an attempted murder on May 29, 2022, and a murder on April 27, 2023, as racketeering acts in furtherance of the RICO conspiracy.
Cartrelle Smith, 27, also known as Poo Moe, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.
If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances. A federal district court judge will determine any sentence after the consideration of the U.S. Sentencing Guidelines and other statutory factors.
ATF, FBI, DEA, IRS-CI, HSI, USPIS, Minneapolis Police Department, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the case, with assistance from the U.S. Marshals Service.
Trial Attorney Jared Engelking of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Garrett S. Fields and David M. Classen for the District of Minnesota are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
11 Minneapolis Gang Members Charged with RICO Conspiracy, Murder in Aid of Racketeering, and Drug Trafficking OffensesRead the Press Release
MINNEAPOLIS – A federal grand jury in Minneapolis returned an 18-count indictment yesterday against 11 alleged members of the Lows—a violent Minneapolis street gang—for crimes including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving murder, attempted murder, gun trafficking, and drug trafficking.
“The Lows are an exceptionally violent criminal street gang that has terrorized north Minneapolis for nearly 20 years. Through threats and violence—shootings and murders—the Lows gang has long sought to establish dominion over large swaths of our city.” said U.S. Attorney Andrew Luger. “My office will continue to respond to gang violence by treating it as the organized criminal activity it is. This indictment is an important step in dismantling a violent street gang that has devastated families and communities in north Minneapolis.”
“According to the indictment, these defendants are leaders, organizers, and members of the Lows street gang, a violent gang that allegedly committed multiple murders and attempted murders and trafficked in guns and drugs, including fentanyl,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division.
“Violent gangs that engage in bloody street wars and peddle deadly drugs endanger our communities. The Criminal Division, along with our local, state, and federal partners, is committed to holding violent criminals accountable, including by bringing racketeering charges.”
“More than 100 people lose their lives to gun violence every day in the United States,” said Special Agent in Charge Travis Riddle of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul Field Division. “There will never be a time where this will be considered acceptable. Our ATF agents put forth solid investigative work in this case utilizing crime gun intelligence that without a doubt aided the case announced today. ATF is happy to work alongside each of our partners in this investigation, and we are grateful to the Criminal Division, U.S. Attorney Luger, and the entire team for taking up this challenging RICO case.”
“To participate in the arrests of 11 alleged violent criminals and see charges filed is very fulfilling,” said Chief Brian O’Hara of the Minneapolis Police Department. “This indictment sends a clear message to violent actors that we are serious about ending violent crime in our cities. Through the partnership between our embedded investigator, several other law enforcement agencies, the Criminal Division, and the United States Attorney’s Office, the countless hours of time invested up to this point have paid off. I trust that these charges increase the hope of justice for the individuals and communities that have been so negatively impacted by these allegedly violent actors.”
“People living in every neighborhood deserve to live safely and freely,” said Sheriff Dawanna Witt of the Hennepin County Sheriff’s Office. “Thanks to the work of local, state, and federal law enforcement, the defendants charged in today’s indictment are off the street and no longer free to terrorize our communities. We appreciate our federal prosecutors for their impactful work and remain committed to this partnership throughout our agency.”
“The charges in this indictment reflect our unwavering commitment to bringing violent criminals to justice,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “For too long, the Lows have inflicted pain and spread fear in north Minneapolis. Together with our law enforcement partners, we are determined to remove this threat from our communities and help restore a sense of security to all who call this city home.”
“We are committed to doing everything we can to get illegal guns, and the criminals committing these crimes, off Minnesota streets,” said Superintendent Drew Evans of the Minnesota Bureau of Criminal Apprehension. “This partnership between federal, state and local agencies to go after these criminals is working — and we’re just getting started.”
“The Lows, and criminal organizations like them, wreak havoc on our communities, threatening the safety of our communities on a daily basis through their many acts of violence, murder, and narcotics and firearms trafficking,” said Special Agent in Charge Jamie Holt of Homeland Security Investigations (HSI) St. Paul. “HSI St. Paul will continue to foster a strong collaboration with our law enforcement partners to bring an end to the chaos these criminal organizations inflict on our local communities.”
“Today’s indictment provides a stark reminder that violence and drug trafficking go hand-in-hand,” said Special Agent in Charge Steven T. Bell of the Drug Enforcement Administration (DEA) Omaha Division. “These were not victimless crimes. Communities were hurt. The DEA will continue its unwavering focus to remove threats of violence and hold accountable the individuals responsible for inflicting fear on the streets of Minneapolis.”
“The individuals named in this indictment allegedly engaged in homicide, and illegal drug and firearms trafficking, which created an atmosphere of terror and disrupted countless lives in this community,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Chicago Field Office. “These charges represent a pivotal milestone in our commitment to restore safety and uphold justice in the communities we serve. Working with their federal, state, and local law enforcement partners, IRS-CI special agents will continue to follow every financial trail to dismantle the networks fueling these criminal enterprises. We stand united against the violence and fear that street gangs have inflicted upon our communities in Minneapolis and elsewhere.”
“This multi-count indictment against ranking members of the Lows gang is an excellent example of multiple law enforcement agencies combining their expertise and resources to conduct investigations with the common goal of taking down violent leaders perpetuating street violence involving guns and narcotics,” said Inspector in Charge Bryan Musgrove of the U.S. Postal Inspection Service (USPIS) Denver Division. “These RICO charges aim to remove these allegedly violent offenders from our community. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives.”
As alleged in this indictment, the defendants were members of the Lows criminal street gang, which has been in existence in Minneapolis since approximately 2004. The Lows are primarily active in the northside of Minneapolis. They traffic in firearms and narcotics, including fentanyl, and use threats, intimidation, and violation to protect their territory, reputation, illicit proceeds, and power. The Lows use violence and threats of violence to target rival gang members as well as individuals who pose a threat to the enterprise or its operations.
The indictment charges that the defendants engaged in a pattern of racketeering—that is, unlawful acts of violence, gun trafficking, and narcotics trafficking—for the benefit of the Lows enterprise. The indictment charges 78 overt acts committed in furtherance of the enterprise. These acts include seven murders or attempted murders involving a total of ten victims.
The following eleven members of the Lows gang, all from Minneapolis, have been indicted for the following crimes:
- Ashimiyu Alowonle III, a.k.a. Cash (“Alowonle”), 38, is charged with RICO Conspiracy and Conspiracy to Distribute Controlled Substances.
- Timothy Callender III, a.k.a. Lil’ Tim (“Callender”), 26, is charged with RICO Conspiracy and Conspiracy to Distribute Controlled Substances.
- Glenn Carter III, a.k.a. G5, a.k.a. Bossman Carter (“Carter”), 23, is charged with RICO Conspiracy, Using, Carrying, or Possessing a Firearm in Furtherance of a Crime of Violence Resulting in Death and Conspiracy to Distribute Controlled Substances. Carter is charged with committing a murder on May 14, 2022 as a racketeering act in furtherance of the RICO Conspiracy.
- Victor Collins, a.k.a. Vic (“Collins”), 22, is charged with RICO Conspiracy, Using, Carrying, or Possessing a Firearm in Furtherance of a Crime of Violence Resulting in Death, Conspiracy to Distribute Controlled Substances, Possession with Intent to Distribute a Controlled Substance, and Possessing a Firearm a Firearm in Furtherance of Drug Trafficking. Collins is charged with committing a murder and an attempted murder on February 27, 2024 as a racketeering act in furtherance of the RICO Conspiracy.
- Damari Douglas, a.k.a. Mari (“Douglas”), 20, is charged with RICO Conspiracy, Felon in Possession of a Firearm, and Possession of a Machinegun. Douglas is charged with committing a murder on December 3, 2023 as a racketeering act in furtherance of the RICO Conspiracy.
- Deontae Jackson, a.k.a. Leef (“D.Jackson”), 35, is charged with RICO Conspiracy and Conspiracy to Distribute Controlled Substances.
- Shannon Jackson, a.k.a. Shakedown (“S.Jackson”), 32, is charged with RICO Conspiracy, Using, Carrying, or Possessing a Firearm in Furtherance of a Crime of Violence Resulting in Death, Conspiracy to Distribute Controlled Substances, Possession with Intent to Distribute a Controlled Substance, Possessing a Firearm a Firearm in Furtherance of Drug Trafficking, and Felon in Possession of a Firearm. Jackson is charged with committing a murder on April 27, 2023 as a racketeering act in furtherance of the RICO Conspiracy.
- Robert Knights Jr., a.k.a. CMB Rob, a.k.a. Lil’ Rob (“Knights”), 19, is charged with RICO Conspiracy, Conspiracy to Distribute Controlled Substances, Possession with Intent to Distribute a Controlled Substance, and Possessing a Firearm a Firearm in Furtherance of Drug Trafficking.
- Albert Lucas V, a.k.a. Abk Sav (“Lucas”), 20, is charged with RICO Conspiracy, Using, Carrying, or Possessing a Firearm in Furtherance of a Crime of Violence Resulting in Death, and Conspiracy to Distribute Controlled Substances. Lucas is charged with committing a murder and an attempted murder on February 27, 2024 as a racketeering act in furtherance of the RICO Conspiracy.
- Kaprice Richards, a.k.a. Kap (“Richards”), 23, is charged with RICO Conspiracy and Using, Carrying, or Possessing a Firearm in Furtherance of a Crime of Violence Resulting in Death. Richards is charged with committing an attempted murder on May 29, 2022 and a murder on April 27, 2023 as racketeering acts in furtherance of the RICO Conspiracy.
- Cartrelle Smith, a.k.a. Pooh Moe (“Smith”), 27, is charged with RICO Conspiracy, Conspiracy to Distribute Controlled Substances, Possession with Intent to Distribute a Controlled Substance, and Possessing a Firearm a Firearm in Furtherance of Drug Trafficking.
If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances.
The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, DEA, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the cases, with assistance from the U.S. Marshals Service.
These cases are being prosecuted by Assistant U.S. Attorneys Garrett S. Fields and David M. Classen for the District of Minnesota and Trial Attorney Jared Engelking of the Criminal Division’s Violent Crime and Racketeering Section.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Secures Agreement with Township of New Hartford to Ensure Polling Place Access to Voters with DisabilitiesRead the Press Release
MINNEAPOLIS – The United States has reached a settlement agreement with the Township of New Hartford to ensure that the Township provides accessible polling places to voters with disabilities. The agreement resolves the United States’ investigation into New Hartford Town Hall’s compliance with Title II of the Americans with Disabilities Act, which prohibits discrimination on the basis of disability and requires state and local governments to ensure that people with disabilities have a full and equal opportunity to vote, announced U.S. Attorney Andrew M. Luger.
Investigators from the Department of Justice surveyed the New Hartford Town Hall and observed physical barriers, including a steep ramp without handrails at the entrance, that make the Town Hall inaccessible to individuals with disabilities.
Under the settlement agreement, the Township is required to make necessary accessibility modifications, including certain modifications no later than October 31, 2024. These modifications include accessible parking areas and a ramp that provides an accessible route to the entrance of the building.
More information about voting and elections is available on the Department of Justice’s website at www.justice.gov/voting. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at www.civilrights.justice.gov or by telephone at 1-800-253-3931.
For more information about the ADA, please visit www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
Assistant U.S. Attorney Adine S. Momoh for the District of Minnesota handled the matter. The settlement agreement can be accessed at: New Hartford Township Settlement Agreement.
Brooklyn Park Man Sentenced to Five Years in Prison for $2.3M Romance Fraud SchemeRead the Press Release
ST. PAUL, Minn. – A Brooklyn Park man has been sentenced to 63 months in prison, three years of supervised release, and was ordered to pay full restitution in the amount of $2,144,291.86 for facilitating a national romance fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, beginning in May 2018 through June 2022, Dodzi Kwame Kordorwu, 38, helped facilitate an online romance fraud scheme that targeted primarily elderly victims and lured them into sending money under false pretenses. The scheme relied on perpetrators impersonating a real or plausible but fictitious person, such as a senior U.S. diplomat or military official, that contacted the victims through online social media applications. The scheme participants then sought to forge a romantic connection with the victims. If successful, the scheme participants would then ask the victims for money purportedly to assist the false persona with some problem or need. Occasionally, the scheme participants would even introduce the victims to a purported third-party intermediary who would corroborate the false persona’s story and assist in defrauding the victims. The victims eventually were directed to send large sums of money by mail or other commercial means to a specified name and address.
In total, Kordorwu received over 250 victim packages containing over $2M in fraud proceeds throughout the scheme. Kordorwu then helped disperse these fraud proceeds to others. To do so, he created numerous dummy corporations and opened a variety of bank accounts to make the transactions appear less suspicious. He also interacted with known victims during the scheme to ensure the successful receipt of their money. Kordorwu kept some of the proceeds for his personal benefit and disbursed the rest to other perpetrators.
U.S. District Judge Eric C. Tostrud sentenced Kordorwu on Tuesday, October 22, 2024. In handing down the sentence, Judge Tostrud specifically commented on the way this fraud scheme targeted elderly victims experiencing loneliness and remarked “the only word I have to describe the nature and circumstances of [Kordorwu’s] offense is ‘cruelty.’”
This case is the result of an investigation conducted by the FBI, the U.S. Postal Inspection Service, and a Digital Forensic Investigator with Hennepin County.
Assistant U.S. Attorneys Jordan L. Sing and Robert M. Lewis prosecuted the case.
Mounds View Woman and Saint Paul Man Plead Guilty to Armed Carjacking in MinneapolisRead the Press Release
MINNEAPOLIS – A Mounds View woman and a Saint Paul man have pleaded guilty to aiding and abetting carjacking, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 6, 2023, Isis Martinaz Brent, a.k.a. Jayda Marie White, 20, and her codefendant Carvon Antonio Saine, 19, approached an elderly victim who had just parked a 2013 Chevrolet Malibu on the street in South Minneapolis. Brent brandished a Carl Walther 9mm semiautomatic pistol and demanded the victim’s keys. During the carjacking, an associate of Brent’s forcefully snatched the victim’s bags, causing the victim to fall and suffer bodily injury on their hands and knees. The Malibu experienced mechanical issues and was later found abandoned. A short time later, Brent and Saine approached a second victim in a parking lot on Chicago Avenue South. Brent knocked on the window, demanded the victim’s keys, and again brandished the Walther semiautomatic pistol at the victim. The second victim was able to escape the attempted carjacking.
Brent pleaded guilty earlier this week to one count of aiding and abetting a carjacking in U.S. District Court before Judge John R. Tunheim. Saine pleaded guilty on September 11, 2024. Sentencing hearings will be scheduled at a later date.
This case is the result of an investigation conducted by the Minneapolis Police Department and the FBI.
Assistant U.S. Attorney David Green is prosecuting the case.
United States Attorney Designates District Election Officer for November 2024 General ElectionRead the Press Release
MINNEAPOLIS – United States Attorney Andrew M. Luger announced today that Assistant United States Attorney (AUSA) Harry M. Jacobs will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Jacobs has been appointed to serve as the District Election Officer (DEO) for the District of Minnesota, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Luger said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorney Luger stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Jacobs will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (612) 253-0948.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (763) 569-8000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
United States Attorney Luger said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Bloomington Woman Pleads Guilty to Money Laundering in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – The last remaining defendant in the November 4, 2024, trial in the Haji’s Kitchen indictment has pleaded guilty to her role in the $250 million Feeding Our Future fraud scheme, announced United States Attorney Andrew M. Luger.
According to court documents, in February 2020, Farhiya Mohamud, 65, of Bloomington, created Dua Supplies & Distribution Inc. (“Dua Supplies”), a business that purported to supply food to paying customers. Mohamud’s customers participated as vendors in the Federal Child Nutrition Program, including co-defendants Haji Osman Salad and Fahad Nur. The money from Salad and Nur, which purported to be for “food supply” or “food services,” accounted for most of the funds that Mohamud deposited into her business bank accounts. In reality, Mohamud knew that she purchased relatively minimal amounts of food and thus supplied little, if any, food to Salad and Nur. Instead, she used the funds to purchase real estate, which she did at the direction of her son, Sharmarke Issa, and for his benefit.
Mohamud, who is the 23rd defendant to plead guilty to charges relating to the Feeding Our Future fraud scheme, appeared today in U.S. District Court before Judge Nancy E. Brasel and pleaded guilty to one count of money laundering. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, and Harry M. Jacobs are prosecuting the case.