Eastern District of Wisconsin
Press releases recorded for this federal judicial district.
Former Owner and Operator of Jannah Healthcare Charged with Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that a federal grand jury in the district returned an indictment charging Latoya Joseph with three counts of tax evasion, in violation of 26 U.S.C. § 7201.
Ms. Joseph was the owner and operator of Jannah Home Health Care, LLC (“Jannah”), a home health business providing personal care services primarily to Medicaid recipients in the Milwaukee area. According to the indictment, Joseph received more than $1.8M from Jannah in 2013, 2014, and 2015, but failed to file federal income tax returns for herself or the business for these years. The indictment alleges that Joseph willfully attempted to evade and defeat the proper assessment and payment of income taxes totaling approximately $640,000.
In a separate indictment also returned today, the grand jury has charged Ms. Joseph with scheming to defraud the Social Security Administration in connection with disability benefits that were paid to a Jannah employee.
“These charges allege serious abuses of federal programs, including the failure to pay taxes on income earned by a federally funded home-health agency,” said U.S. Attorney Krueger. “We are committed to prosecuting program fraud and tax cheating aggressively to protect federal funds.” Added Chicago IRS Criminal Investigation Special Agent in Charge Kathy Enstrom: “Today’s indictment alleges the misuse of Joseph’s standing in the community as a person providing vital services to those in need. IRS-Criminal Investigation remains committed to the investigation of those who violate the tax laws for their own benefit.”
These matters were jointly investigated by agents of the U.S. Internal Revenue Service – Criminal Investigation, agents of the Social Security Administration – Office of Inspector General, and agents of the U.S. Department of Health and Human Services - Office of the Inspector General. They are being prosecuted by Assistant United States Attorney Jonathan H. Koenig.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
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United States Attorney’s Office Hosts Roundtable on Racial and National Origin Discrimination in HousingRead the Press Release
The United States Attorney’s Office for the Eastern District of Wisconsin and the Justice Department’s Civil Rights Division hosted a roundtable September 23rd, 2019 for community organizations to discuss the problem of racial and national origin discrimination in housing, U.S. Attorney Matthew D. Krueger announced.
The event included local legal aid offices, fair housing organizations, civil rights organizations, faith-based organizations, and other community groups. Those organizations were invited because they often work with populations likely to become victims of housing discrimination. United States Attorney Krueger stated: “Federal law provides individuals with the right to obtain access to housing and lending free from discrimination. Our office is dedicated to uncovering violations of those rights and vigorously enforcing the law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. The Department of Justice may bring lawsuits where there is reason to believe that a person or entity is engaged in a “pattern or practice” of discrimination or where a denial of rights to a group of persons raises an issue of general public importance. The Department of Justice also brings cases where a housing discrimination complaint has been investigated by the Department of Housing and Urban Development, HUD has issued a charge of discrimination, and one of the parties to the case has “elected” to go to federal court. In FHA cases, the Department can obtain injunctive relief, including affirmative requirements for training and policy changes, monetary damages and, in pattern or practice cases, civil penalties.
The U.S. Attorney’s Office and the Civil Rights Division held the roundtable to raise awareness in the Eastern District of Wisconsin about options to help victims experiencing discrimination in housing. Attendees were encouraged to be alert and encourage that victims to report housing discrimination to the Civil Rights Division and the United States Attorney’s Office.
The Justice Department encourages anyone who has experienced racial or national origin discrimination in housing, or knows someone who has, to contact the Division by calling 1-800-896-7743 or https://www.justice.gov/crt/housing-and-civil-enforcement-section-overview.
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at 414-297-1700 or visiting https://www.justice.gov/usao-edwi/contact.
Milwaukee Financial Advisor Sentenced to 30 Months in Federal Prison for Fraud Scheme that Targeted Elderly VictimsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on September 19, 2019, the Honorable Pamela Pepper, United States District Court Judge for the Eastern District of Wisconsin, sentenced Chris Kubiak, 60, of Milwaukee, to 30 months in prison following his conviction for a fraud scheme that targeted elderly victims. The prison sentence will be followed by three years of supervised release. Kubiak also will be required to make restitution in the amount of $379,977 to the six victims named in the indictment.
Kubiak had earlier pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343. As admitted in his plea agreement, Kubiak worked as a financial advisor through Freedom Investors Corp, and Calton & Associates, Inc. In that role, Kubiak arranged to have funds withdrawn from several elderly clients’ investment accounts and mailed to their homes or wired to their bank accounts. Kubiak falsely told the clients that the funds were bonuses or dividends that he would reinvest for them. He solicited personal checks from the clients, but rather than reinvesting the money as promised, Kubiak deposited the funds into his own checking account and used the money for gambling and other personal expenses. The scheme spanned a period of five years and was ultimately discovered by a victim’s relative, who reported Kubiak to authorities.
Speaking for one of the victims, a relative described the debilitating emotional and mental distress suffered by her loved one who had long known and trusted Kubiak to grow her small nest egg. In sentencing Kubiak, the Court emphasized the need for punishment and deterrence, both for Kubiak and for others who might be similarly tempted to prey upon the elderly.
“The victims in this case entrusted Kubiak with savings they had earned through honest, hard work over their lifetimes,” said U.S. Attorney Krueger. “Kubiak exploited that trust and now faces years in federal prison. Let this case be a warning to anyone who would prey on elderly members of our community.”
The charges against Kubiak were announced as part of the U.S. Department of Justice’s largest-ever nationwide elder fraud sweep on March 7, 2019. The case was investigated by detectives from the Waukesha County Sheriff Department and the Franklin Police Department and Special Agents from the United States Secret Service Financial Crimes Task Force. The case was prosecuted by Assistant United States Attorney Carol L. Kraft.
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Wisconsin Man Sentenced to Prison for Producing Child Pornography Outside of the United StatesRead the Press Release
A Wisconsin man was sentenced yesterday to 20 years in prison, followed by 10 years of supervised release, for producing and possessing child pornography in 2015 and engaging in illicit sexual conduct with a minor in the Philippines between 2014 and 2015.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin made the announcement.
Jeffrey H. Ernisse, 63, was sentenced by U.S. District Court Judge Lynn S. Adelman of the Eastern District of Wisconsin. According to admissions made in connection with his guilty plea, while law enforcement was investigating Ernisse for production of child pornography in Wisconsin, they discovered evidence of additional child pornography production from the Philippines on Ernisse’s digital devices. He sexually assaulted a four-year-old girl and then recorded the sexual assaults on March 10, 2015 and April 17, 2015.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with the cooperation of the Sheboygan, Wisconsin, Police Department investigated the case. Former Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin prosecuted the case.
This investigation is a 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.
Wisconsin Man Sentenced to 20 Years in Prison for Producing Child Pornography Outside of the United StatesRead the Press Release
Jeffrey H. Ernisse, 63, was sentenced today to 20 years in prison for producing and possessing child pornography in 2015 and engaging in illicit sexual conduct with a minor in the Philippines between 2014 and 2015. U.S. District Court Judge Lynn S. Adelman of the Eastern District of Wisconsin ordered the sentence to run consecutive to a state sentence on which Ernisse has another three years to serve, and will be followed by ten years of supervised release.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin made the announcement.
According to admissions made in connection with his guilty plea, while law enforcement was investigating Ernisse for production of child pornography in Wisconsin, they discovered evidence of additional child pornography production from the Philippines on Ernisse’s digital devices. He traveled to the Philippines in June 2014 and married a woman he met on the internet. He sexually assaulted her four-year-old daughter and then recorded the sexual assaults on March 10, 2015 and April 17, 2015.
“Across the world, predators like Jeffrey Ernisse are exploiting children and sharing those despicable acts with others online. This case demonstrates our commitment to pursue justice against predators, wherever the case leads. We must use every tool available to confront child sex abuse,” stated U.S. Attorney Krueger.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with the cooperation of the Sheboygan Police Department. Former Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin prosecuted the case.
This investigation is a 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.
Two Men Federally Indicted for Armed Bank Robberies in Three Wisconsin CountiesRead the Press Release
United States Attorney Matthew D. Krueger announced today that two Waupun men were federally indicted for their involvement in three armed bank robberies in Waukesha, Washington, and Sheboygan Counties in 2019. Justin S. Smith, age 36, and William D. Balgie, age 35, were charged with committing robberies on the following dates at the following locations:
- April 8, 2019, at the National Exchange Bank and Trust in Allenton, Wisconsin;
- June 17, 2019, at the Cornerstone Bank in Menomonee Falls, Wisconsin; and
- August 9, 2019, at the National Exchange Bank and Trust in Glenbeulah, Wisconsin.
If convicted, each man faces up to 25 years in prison on each armed bank robbery count.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee District Attorney’s Investigator’s Office, the Menomonee Falls Police Department, the Washington County Sheriff’s Office, the Waupun Police Department, the Sheboygan County Sheriff’s Office, the Slinger Police Department, the Plymouth Police Department, the Beaver Dam Police Department, and the District Attorney’s Offices in Sheboygan, Washington, and Waukesha Counties. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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Milwaukee Business Owner Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on September 12, 2019, Tedmund Blankschein, 51, plead guilty to one count of conspiracy to defraud the United States by impeding the Internal Revenue Service in connection with his and Albert Golant’s luxury vehicle brokerage businesses, WI Automotive T.R.U.S.T., Lease, Registration, and Consulting LLC, and DOT Automotive of WI LLC, from at least May 2013 to May 2017. This offense carries a maximum penalty of up to five years in prison and a fine of up to $250,000, or both.
According to court documents, Blankschein and Golant were in the business of purchasing luxury vehicles in the United States and then selling them at a substantial profit to foreign buyers overseas, typically in China. Both Blankschein and Golant had control over multiple business and personal bank accounts that they used to divert corporate receipts of WI Automotive T.R.U.S.T., Lease, Registration, and Consulting LLC, and DOT Automotive of WI LLC, which were supposed to be used to purchase specific luxury vehicles. Blankschein and Golant used the diverted funds to gamble and to purchase personal items such as expensive jewelry, which they concealed from their accountant. Instead, Golant falsely told their accountant that these funds were used to purchase luxury vehicles and should be deducted as expenses on their tax returns. As a result, their tax returns substantially overstated business expenses. Blankschein and Golant underreported the income from WI Automotive T.R.U.S.T., Lease, Registration, and Consulting LLC, and DOT Automotive of WI LLC by more than $12 million, generating a tax loss to the United States of more than $5.4 million.
This matter was investigated by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laura S. Kwaterski.
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Hobart Resident Pleads Guilty to Selling Drugs via the “Dark Web”Read the Press Release
United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin, announced that on Monday, September 9, 2019, Christopher D. Bania, (age: 26) of Hobart, Wisconsin, pled guilty to a charge of possession with the intent to distribute controlled substances. At the hearing, Bania acknowledged selling a variety of illegal drugs nationwide on the "dark web" in exchange for cryptocurrency.
Bania faces up to 20 years’ imprisonment, a $1 million fine, and from 3 years to a lifetime on supervised release. Bania also will forfeit approximately $1.5 million worth of cryptocurrency previously seized by the government, along with $85,000 in U.S. Currency. He will be sentenced on December 9, 2019, at the Federal Courthouse in Green Bay.
According to the plea agreement, Bania sold narcotics, including MDMA ("Ecstasy"), cocaine, DMT, ketamine, LSD, MDA, methaqualone, marijuana, and a variety of other controlled substances. To make his sales, Bania utilized dark web marketplaces, including Dream Market, Zion, Wall Street, Hansa, Trade Route, and Alpha Bay. Alpha Bay and Hansa were shut down by law enforcement in July of 2017.
The dark web is a part of the internet that is unreachable by traditional search engines and web browsers. Websites on the dark web have complex web addresses generated by a computer algorithm and must be accessed using special software that is capable of connecting to "The Onion Router" network, or "TOR" for short. The TOR network is encrypted and routes internet traffic dynamically through a series of computers around the world, concealing the true Internet Protocol (IP) addresses of the computers accessing the network and thereby making internet use virtually anonymous. This perceived anonymity has led to a proliferation of criminal activity on dark web marketplaces, where users can find vendors, like Bania, offering illegal goods and services for sale.
"Law enforcement is committed to pursuing drug traffickers wherever they operate, and we will do everything necessary to deprive traffickers of illegal drug profits in whatever their form, cash or cryptocurrency," said U.S. Attorney Krueger.
"Today’s guilty plea demonstrates the value of collaboration among state, local, and federal agencies throughout the criminal justice system. Each entity within this investigation played a critical role in unmasking the offender who preyed on the vulnerable from behind a computer," remarked Drug Enforcement Administration Assistant Special Agent in Paul E. Maxwell, Jr.
"As this case shows, drug dealers use modern technology to further their illegal activities," said Attorney General Josh Kaul. "But no matter what method drug dealers use to try to evade detection, law enforcement agencies in Wisconsin are committed to stopping them."
This case was a joint investigation of the U.S. Customs and Border Patrol, U.S. Postal Inspection Service, U.S. Drug Enforcement Administration, Wisconsin Department of Justice – Division of Criminal Investigation, the Brown County Drug Task Force, the Hobart/Lawrence Police Department, and the Oneida Police Department. The case is being prosecuted by Assistant United States Attorneys Scott J. Campbell, Benjamin W. Proctor, and Daniel R. Humble.
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Eleven Defendants Charged in Federal Court with Drug Trafficking, Possession of Firearms, and Money Laundering in Green BayRead the Press Release
United States Attorney Matthew D. Krueger has announced that federal, state, and local law enforcement officers engaged in a significant drug operation in Green Bay and surrounding communities resulting in a federal grand jury returning on September 10, 2019, an eleven-count superseding indictment charging eleven defendants with conspiracy to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana. Additionally, the superseding indictment charges some defendants with possession of firearms in furtherance of drug trafficking as well as money laundering. Additional defendants face drug charges in Brown County Circuit Court for their involvement in this drug organization. All defendants are residents of Green Bay with exception of Oscar Alonso and James Parkinson (Milwaukee), Hector Gomez-Salas (Oklahoma) and Francisco Martinez (Rochelle, Illinois).
The defendants charged in the superseding indictment are:
Name
Age
Charge
Ruben Ortiz, Jr.
36
Conspiracy to Distribute Controlled Substances; Money Laundering
Alejandro Lopez
37
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Cocaine; Possession of a Firearm in Furtherance of a Drug Crime
Francisco Martinez
38
Conspiracy to Distribute Controlled Substances
Hector M. Gomez-Salas
31
Conspiracy to Distribute Controlled Substances
Oscar Alonso
45
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Cocaine; Possession with intent to Distribute Heroin
Gabiel Y. Bonilla
37
Conspiracy to Distribute Controlled Substances
Cedric D. Cohen
42
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Cocaine; Possession of a Firearm in Furtherance of a Drug Crime
Terry A. Johnson
27
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Crack Cocaine; Possession with intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Crime
Richard D. Guyette
26
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Fentanyl
James H. Parkinson
46
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Cocaine; Possession with intent to Distribute Heroin
Stephanie M. Ortiz
30
Conspiracy to Distribute Controlled Substances; Money Laundering
As part of this investigation, law enforcement executed numerous arrest warrants and search warrants in June 2019 at various locations in Green Bay. The operation and charges are the culmination of a multi-year investigation that has resulted in the seizure of significant amounts of heroin, fentanyl, cocaine, marijuana, $130,000 in U.S. Currency, vehicles, and at least 14 firearms. One seizure in particular involved approximately 480 grams of fentanyl that was intended to be sold by members of the conspiracy.
If convicted of the conspiracy to distribute controlled substances, the defendants face at least a minimum term of 10 years prison, and up to life. Convictions on the firearms and money laundering counts would expose the defendants to additional terms of incarceration.
The investigation was led by the following law enforcement groups: Brown County Drug Task Force, Green Bay Police Department, Brown County Sheriff’s Office, Menominee Tribal Police Department, Manitowoc County Metro Drug Unit, Lake Winnebago Area Metropolitan Drug Unit, Oneida Police Department, Wausau Police Department, Native American Drug and Gang Initiative Task Force, Brown County District Attorney’s Office, Outagamie County District Attorney’s Office, Manitowoc County District Attorney’s Office, Wisconsin Attorney General’s Office, Wisconsin Department of Justice, Division of Criminal Investigation, Wisconsin Department of Revenue, Wisconsin State Patrol, Wisconsin National Guard Counter Drug Program, Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service, North Central High Intensity Drug Trafficking Area (HIDTA). The case is prosecuted by Assistant United States Attorney William Roach.
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Minnesota and Oconto County Residents Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Matthew D. Krueger has announced that the following individuals recently were sentenced by the Honorable Chief Judge William C. Griesbach following their guilty pleas to the charge of conspiracy to distribute 50 grams or more of methamphetamine:
Name
Age
Residence
Gregory Ives
41
Mounds View, MN
Benjamin McNamara
33
Oconto, WI
Kristine Olson
32
Oconto, WI
Chief Judge Griesbach imposed the following sentences: (1) Ives -- ten year prison term followed by five years of supervised release; (2) McNamara -- ten year prison term followed by ten years of supervised release; and (3) Olson -- six year prison term followed by six years of supervised release.
According to the indictment and other court documents, between June and September 2018, Oconto County Sheriff Narcotics Investigators met with several confidential informants who advised that Kristine Olson was selling methamphetamine in Oconto County and surrounding areas. In September, Investigators tracked Olson and McNamara as they traveled to Minnesota, where they had been purchasing multiple ounce quantities of methamphetamine from Ives. On September 27, 2018, law enforcement stopped Olson and McNamara in their vehicle upon returning from Minnesota. A search of their car revealed a bag containing 212 grams of methamphetamine (later tested to be approximately 98% pure) and 11 separate baggies containing 44 grams of methamphetamine. Ives was later arrested for selling the methamphetamine to Olson and McNamara.
This case was investigated by the Wisconsin Department of Justice-Division of Criminal Investigation, Oconto County Sheriff’s Department, U.S. Drug Enforcement Administration, and Wisconsin State Patrol. The case was prosecuted by Assistant United States Attorney William Roach.
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Five Green Bay Residents Sentenced to Prison for Conspiracy to Distribute Methamphetamine and Gun PossessionRead the Press Release
United States Attorney Matthew D. Krueger has announced that the following individuals (all of Green Bay) recently were sentenced by the Honorable Chief Judge William C. Griesbach following their guilty pleas to the charge of conspiracy to distribute 50 grams or more of methamphetamine:
Name
Age
Sentence
Konkapot Betz
26
12 years’ prison, followed by 5 years of supervised release
John Otto
36
10 years’ prison, followed by 5 years of supervised release
Alex Pociopa
27
64 months’ prison, followed by 8 years of supervised release
Cole Rittenhouse
25
10 years’ prison, followed by 5 years of supervised release
Mariah Becker
26
5 years’ prison, followed by 5 years of supervised release
The sentences for Betz and Otto also were based in part on their possession of firearms. According to plea agreements and other court documents, on November 10, 2018, Ashwaubenon Public Safety responded to an apartment to serve arrest warrants on Pociopa and Becker. Both fled into the apartment. When law enforcement made entry, Rittenhouse and Betz were found hiding in a bedroom in the apartment. A search of the bedroom revealed two handguns, $1,178 in U.S. currency, two digital scales, and a baggie containing 426 gabapentin pills. Elsewhere in the apartment, law enforcement found a total of 60 grams of methamphetamine.
The Brown County Drug Task Force reviewed calls and text messages found on Betz’s phone. Those messages confirmed that Betz sold methamphetamine and heroin to Pociopa, Becker, Rittenhouse, and others. The messages also identified John Otto as Betz’s supplier.
This case was investigated by the Brown County Drug Task Force and Ashwaubenon Public Safety. The case was prosecuted by Assistant United States Attorney William Roach.
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Kewaunee Man Sentenced for Child Pornography DistributionRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on September 4, 2019, Kyle D. Sanderson (age: 19) of Kewaunee, Wisconsin, was sentenced to 60 months in federal prison by Chief District Judge William C. Griesbach.
In April of 2018, the Department of Homeland Security was notified by a Canadian-based social media company that an individual known online as “Rp.Destiny” was sending pornographic images and videos of children to another user. Based on that information local law enforcement sought a search warrant and were able to identify “Rp.Destiny” as Kyle D. Sanderson.
Further investigation revealed that Sanderson exchanged passcodes with another individual online. These passcodes allowed them to access each other’s child pornography libraries utilizing a cloud storage application based in New Zealand. In total, investigators located approximately 4,400 images or videos depicting pornography on Sanderson’s smart phone, many involving the abuse of toddlers and infants.
At sentencing, Chief Judge Griesbach noted the serious nature of the crime and the need to send a message of deterrence to both Sanderson and the community. Chief Judge Griesbach also ordered Sanderson to spend 5 years on supervised release after his discharge from federal prison. Sanderson also will have to register as a sex offender.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the Wisconsin Department of Justice, Division of Criminal Investigations, with the assistance of the Kewaunee County Sheriff’s Office and the City of Kewaunee Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ 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.projectsafechildhood.gov.
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Turkish Businessman Sentenced to 27 Months Imprisonment for Conspiracy to Violate U.S. Sanctions by Exporting Marine Equipment from the United States to IranRead the Press Release
Resit Tavan, a Turkish Businessman and owner of the Istanbul-based Turkish business Ramor Dis Ticaret Ltd. (also known as the “Ramor Group”) was sentenced on Thursday, Aug. 29, 2019, in Federal District Court in Milwaukee, Wisconsin, to 27 months imprisonment in connection with his conviction for conspiracy to violate U.S. sanctions by exporting specialized marine equipment from the United States to Iran between 2013 to 2015.
On April 2, 2019, Tavan, a Turkish citizen, had pleaded guilty to a conspiracy to violate U.S. sanctions on Iran under the International Emergency Economic Powers Act by using his Turkish based company, the Ramor Group, to acquire a range of marine related equipment that had been manufactured in Wisconsin by U.S. companies, including high powered outboard engines, marine power generators and power boat propulsion equipment known as surface drives, on behalf of the Iran-based Qeshm Madkandalou Shipbuilding Cooperative (Madkanadalou). Evidence introduced in Court showed that Tavan had worked in cooperation with Iranian officers associated with Madkandalou to use some of this U.S. origin marine equipment to support the construction and development of a prototype high-speed missile attack boat for the Iranian military or naval forces. From early 2013 through 2015, Tavan and the Ramor Group had worked in concert with Iranian officials to procure U.S. origin marine equipment and illegally export it to Iran by using the Ramor Group in Turkey to receive the goods and thereafter re-export it to Madkandalou in Iran, in violation of U.S. sanctions.
At the sentencing hearing, the District Court Judge indicated that this conspiracy to violate U.S. sanctions by procuring marine equipment for military purposes represented a serious threat to U.S. national security. The Judge also found that Tavan’s role in the offense should be considered in connection with the overall direction and control of the project by higher ranking Iranian officials.
At no time did anyone involved in these transactions obtain permission from the U.S. Department of Treasury, Office of Foreign Assets Control or the U.S. Department of Commerce to export any U.S.-origin marine equipment from the United States to Iran.
A co-defendant charged in the same Indictment, Fulya Kalafatoglu Oguzturk, a Turkish citizen, remains at large as a fugitive.
Assistant Attorney General Demers and U.S. Attorney Matthew Krueger praised the outstanding investigative work of the FBI and the U.S. Department of Commerce, and thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Marshals Service, for their contributions to this case. The Office of International Affairs of the Justice Department’s Criminal Division provided significant support with the defendant’s extradition from Romania in 2017.
This case was prosecuted by Assistant U.S. Attorneys Paul Kanter and Keith Alexander, and by Trial Attorney Will Mackie from the Counterintelligence and Export Control Section of the National Security Division.
Appleton Man Indicted for Impersonating a Deputy US Marshal and Possessing a Firearm as a Convicted FelonRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on August 27, 2019, a federal grand jury returned an indictment against Adam K. Fevold (age: 31) of Appleton, Wisconsin.
Fevold faces charges alleging he impersonated a Deputy US Marshal and was a felon in possession of a firearm, contrary to Title 18, United States Code, Sections 912 and 922(g)(1). He faces maximum penalties of three and ten years’ imprisonment, respectively, fines of $250,000, and three years of supervised release.
According to the indictment, Fevold pretended to be a Deputy US Marshal in order to be excused from work at his private employer. The indictment further alleges that Fevold falsely represented to the company that he possessed and was authorized to use U.S. Marshal-issued credentials and equipment, including a badge, handcuffs, a heat-seeking drone, and bulletproof glass and emergency lights on his vehicle. The indictment also alleges that during the same time period, Fevold was a convicted felon unlawfully possessing a Romanian-made 7.62-millimeter semi-automatic rifle.
This case was investigated by the United States Marshals Service and the Outagamie County Sheriff’s Department. It will be prosecuted by Assistant United States Attorney Timothy W. Funnell.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Father and Son Indicted on Drug ConspiracyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on August 20, 2019, a federal grand jury indictment was issued against Pedro Monarrez, Sr. (age: 68) and Pedro Monarrez , Jr. (age: 38) of El Paso, Texas and the Chicagoland area.
Monarrez Sr. and Monarrez Jr. face charges alleging they conspired to possess with intent to distribute and distributed kilogram quantities of heroin and cocaine in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
If convicted of all of the charges, both men will face a minimum of ten years to life imprisonment in a federal prison and at least five years of supervised release along with up to a $10 million fine.
This case was investigated by the North Central High Intensity Drug Trafficking Area (HIDTA), the Wisconsin Department of Justice, Division of Criminal Investigation (DCI), and the Drug Enforcement Administration (DEA). It will be prosecuted by Assistant United States Attorneys Gail J. Hoffman and Elizabeth M. Monfils.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Two Rivers Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on August 20, 2019, a federal indictment was issued against Clint J. Blaha (age: 37) of Two River, Wisconsin.
The indictment alleges that Clint J. Blaha possessed in excess of 50 grams of actual methamphetamine (also known as “crystal”) with the intent to distribute the controlled substance. If convicted of the charges alleged, Blaha faces a mandatory ten year prison sentence and up to a life sentence. Blaha will be arraigned in federal court in Green Bay on Monday, August 26, 2019, at 1:00 p.m.
This case was investigated by the Manitowoc County MEG Unit with the assistance of the Manitowoc County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Chilton, WI Resident Andy Huebschmann Pleads Guilty to Exporting Arms to Australia IllegallyRead the Press Release
A Wisconsin man pleaded guilty today to an arms-trafficking crime related to his export of guns to Australia, announced United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin.
Andy Lloyd Huebschmann, 59, was convicted of one count of violating the Arms Export Control Act, Title 22, United States Code, Sections 2778(b)(2) and 2778(c), and Title 22, Code of Federal Regulations, Sections 121.1, 123.1, and 127.1.
According to admissions made in connection with his plea, Huebschmann manufactured numerous firearms and firearm-parts for an Australian criminal and gun-enthusiast. These included rifle kits, which contained the component parts for rifles that could function with either semi-automatic or fully automatic triggers, and 1911 firearm frames that could be assembled into completed pistols. Huebschmann exported those items from the United States to Australia illegally, failing to obtain the required export licenses and shipping guns in containers designed to hide the presence of firearms.
“Today’s conviction reflects our commitment to vigorously prosecute illegal firearms trafficking, wherever it occurs,” stated U.S. Attorney Krueger. “This conviction resulted from outstanding cooperation between the ATF, the Department of Homeland Security, and Australian law enforcement.”
“This defendant’s plea to these serious charges sends an important message that cooperatively law enforcement will investigate and prosecute gun trafficking beyond our borders,” remarked ATF Special Agent in Charge Tim Jones of the Chicago Field Division. “I commend the international partnership of the prosecutors, agents and officers who brought this case to justice.”
Huebschmann faces a maximum term of imprisonment of twenty years, a maximum of three years of supervised release, and a maximum fine of $250,000. His sentencing is set for November 4, 2019, at 1:30 p.m before Judge William Griesbach.
This conviction is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Homeland Security. The case is being prosecuted by Assistant United States Attorney Rebecca Taibleson.
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Albert Golant Sentenced for Wire Fraud and Tax Fraud ConspiracyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on August 5, 2019, the Honorable Pamela Pepper sentenced Albert Golant, aka Alex Golant, (age: 38) of Wales, Wisconsin to 126 months’ imprisonment followed by three years of supervised release for wire fraud and conspiracy to commit tax fraud. The Court deferred the imposition of a restitution order at this time.
Over the course of several years and while he was on federal supervised release for a prior fraud conviction, Golant orchestrated a sophisticated Ponzi scheme through which he obtained over $30 million from at least 40 different victims. Golant was in the business of purchasing luxury vehicles in the United States and then selling them at a substantial profit to foreign buyers overseas, typically in China. Golant engaged in a long-term fraud scheme in which Golant obtained the funds from third parties by representing that the funds would be used to purchase specific luxury vehicles. The third parties included vehicle brokers, investors, and lenders. In some instances, Golant never purchased the specific vehicle and did not return the funds. In other instances, Golant purported to sell the same luxury vehicle to multiple clients at the same time. In still other instances, Golant obtained funds from investors, lenders, or clients for the purchase of luxury vehicles he knew had already been sold and exported. To carry out the scheme, Golant made numerous misrepresentations, including preparing multiple fraudulent financing applications to obtain financing for vehicles he knew had previously been exported.
Through the scheme, Golant obtained at least $30 million from at least 40 different victims. He used the funds to support his lavish lifestyle and maintain his wealthy image—including flying across the country in private jets to engage in high-stakes gambling at exclusive casinos, and living in a 10,000 square foot home that was rented for $7,500 a month. Golant also used the funds to pay off gambling debts and to pay professional gamblers to gamble on his behalf. In addition, Golant used the funds to attempt to sustain his luxury vehicle export businesses by using client funds to pay off prior loans, and using one client’s funds to satisfy obligations due to his other clients. In the end, Golant’s scheme left at least 22 victims with a net loss of approximately $17.7 million and the United States with a tax loss of approximately $5.4 million.
“Fueled by greed, Golant carried out an outrageous fraud scheme that harmed victims around the globe,” said U.S. Attorney Krueger. “The United States is fully committed to prosecuting financial crimes. This case proves the point: The IRS-Criminal Investigation Division showed extraordinary tenacity in cutting through Golant’s web of lies and bringing him to justice.”
“Today’s sentencing of Albert Golant again emphasizes the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to commit tax fraud and wire fraud,” said Kathy Enstrom, IRS Criminal Investigation Special Agent in Charge, Chicago Field Office. “Honest taxpayers have been reassured today that no one is above the law—especially when the integrity of tax administration is at stake.”
This matter was investigated by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laura S. Kwaterski.
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Registered Sex Offender Indicted for Child Pornography Production in WisconsinRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 23, 2019 a federal grand jury returned a two-count indictment against Timothy L. Tyler (age: 40) of Milwaukee, WI.
Tyler faces charges alleging he distributed and possessed child pornography contrary to Title 18, United States Code, Sections 2252A(a)(2)(A) and (a)(5)(B). If convicted of all of the charges, Tyler will serve a mandatory 15 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and the High Technology Unit of The Milwaukee Police Department. It will be prosecuted by Assistant United States Attorney Megan J. Paulson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Former Waukesha County Juvenile Social Worker Indicted for Distribution and Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 23, 2019 a federal grand jury returned a two-count indictment against Bernard J. Trokan (age: 53) of Hartland, WI.
Trokan faces charges alleging he possessed and distributed child pornography contrary to Title 18, United States Code, Sections 2252A(a)(2)(A) and (a)(5)(B).
If convicted of all of the charges, Trokan will serve a mandatory 5 years in federal prison and up to 20 years in prison.
This case was investigated by the Federal Bureau of Investigation-Child Exploitation Task Force and by the Waukesha County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Megan J. Paulson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Registered Sex Offender Indicted for Child Pornography Production in Wisconsin and CaliforniaRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 23, 2019 a federal grand jury returned a four-count indictment against Cort W. Davis (age: 31) of Rochester, New York.
Davis faces charges alleging he produced child pornography contrary to Title 18, United States Code, Sections 2251(a). According to the indictment, the first production of child pornography occurred in California in early May of 2018. A visual depiction of his sexually explicit conduct with a minor, “Jane Doe A,” was then transported to the Eastern District of Wisconsin by Davis. The second incident occurred approximately two weeks later when Davis is alleged to have employed another minor, “Jane Doe B,” in the production of sexually explicit images, this time within the Eastern District of Wisconsin. Davis is further alleged to have possessed digital images of child pornography unrelated to his activities with “Jane Doe A” and “Jane Doe B.”
Davis was previously convicted in the State of New York of the crime of “attempted possession of a sexual performance by a child under the Age of 16.” He is currently a sex offender registrant under the laws of that state. As such, he faces an additional charge for the commission of a felony sex offense by an individual required to register as a sexual offender contrary to Title 18, United States Code, Section 2260A. If convicted of all of the charges, Davis will serve a mandatory 35 years in federal prison and up to a life sentence.
This case was investigated by the Appleton Police Department, the Grand Chute Police Department, the Wisconsin Department of Justice, Division of Criminal Investigations, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Keshena Man Indicted for Firearm Offense and Domestic Violence on the Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 16, 2019, a federal grand jury returned a one-count indictment against a man allegedly involved in a firearms offense on the Menominee Indian Reservation. In addition, the grand jury returned a one-count indictment against the same man allegedly involved in domestic violence against a woman on the Menominee Indian Reservation. Both indictments named Jeremy Nunway (age: 39) of Keshena.
The first indictment charged Nunway with Possession of a Firearm by a Prohibited Person in violation of 18 U.S.C. § 922(g). If convicted of this charge, Nunway faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the first indictment, on or about October 9, 2018, the defendant possessed an SKS semiautomatic rifle at a location in the Menominee Indian Reservation at the time the defendant was prohibited from possession of firearms.
This firearms offense is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The second indictment charges Nunway with Domestic Assault by Strangulation in violation of 18 U.S.C. § 113(a)(8). If convicted of this charge, Nunway faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the second indictment, on or about April 17, 2019, the defendant strangled a woman with whom he had a dating relationship on the Menominee Indian Reservation.
The Menominee Tribal Police Department investigated both cases, Federal Bureau of Investigation assisted in the investigation of the Domestic Assault charge. Both cases will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Keshena Man, Shawano Woman Indicted for Obstruction of Justice and Firearm Offense on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 16, 2019, a federal grand jury returned a three-count indictment against a man and woman allegedly involved in a firearms offense on the Menominee Indian Reservation. The indictment charged Aaron C. Smith (age: 27), formerly of Keshena, which is located on the Menominee Indian Reservation, and Keanna R. King (age: 26), of Shawano.
Count One of the indictment charged Smith with Prohibited Possession of a Firearm in violation of 18 U.S.C. § 922(g). Smith faces a maximum of ten years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release if convicted of this offense. The indictment also charged Smith with Obstruction of Justice in violation of 18 U.S.C. § 1512(b)(1). If convicted of this offense, Smith faces a maximum of 20 years in prison, up to a $250,000 fine, and up to three years of supervised release.
King is charged in Count Three with False Declarations Before a Grand Jury in violation of 18 U.S.C. § 1623(a). If convicted, she faces a maximum sentence of five years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about April 21, 2019, Smith possessed a .25 caliber handgun despite knowing he was prohibited from possession due to a previous conviction. On or about May 6, 2019, Smith allegedly acted to influence King’s testimony before a federal grand jury. According to the indictment, on or about May 29, 2019, King provided false testimony to a federal grand jury when she denied Smith handed her a firearm he illegally possessed on April 21, 2019.
The Menominee Tribal Police Department, Wisconsin State Crime Laboratory, and Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Keshena Man Indicted for Aggravated Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 16, 2019, a federal grand jury returned a one-count indictment against a man allegedly involved in an assault that resulted in a woman sustaining serious bodily injury. The indictment named Brad L. Blackowl (age: 28) of Keshena, which is located in the Menominee Indian Reservation.
The indictment charged Blackowl with Assault Resulting in Serious Bodily Injury in violation of 18 U.S.C. § 113(a)(6). If convicted, Blackowl faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about February 17, 2019, the defendant struck a woman with his fist, causing her to sustain nasal injuries requiring surgical reconstruction.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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West Allis Man Makes Initial Appearance on Charges of traveling in foreign Commerce and Engaging in Illicit Sexual ConductRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced on July 15, 2019 that Donald A. Stenson, age 63, of West Allis, WI, was arraigned in federal court in Milwaukee on an indictment returned July 9, 2019. Stenson is charged with traveling in foreign commerce and engaging in illicit sexual conduct in a foreign place between 2016 and 2019. He was arrested on Friday July 12, 2019 at his West Allis residence.
The indictment charges that Stenson engaged in four counts of traveling in foreign commerce and engaging in illicit sexual conduct as well as four counts of sex trafficking of a minor. Stenson resides in Thailand, but the sex acts occurred in the Philippines. Stenson appeared before U.S. District Court Judge David E. Jones. The court finds that his ties outside of our country and frequent foreign travel make him a flight risk therefore Judge Jones ordered that he be detained. He set another date for next week Wednesday, July 24
This was a joint investigation between U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Manila Transnational Criminal Investigation Unit, and Philippine Authorities. The West Allis Police Department assisted in the arrest. This case is being prosecuted by Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin.
This investigation is a 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.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Fifteen Defendants Charged in Federal Court with Heroin Trafficking and Possession of Firearms in MilwaukeeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that federal, state, and local law enforcement officers engaged in a significant operation in Milwaukee today that targeted a violent drug-trafficking conspiracy led by Jimmy D. Bates. The operation coincided with the unsealing of a nine-count indictment that charged Bates and 14 other defendants with conspiracy to distribute heroin and cocaine. Certain defendants were also charged with possession of firearms in furtherance of the conspiracy; unlawful possession of firearms by a felon; and conspiracy to commit robberies of others who possessed drugs.
The defendants charged in the indictment are:
Name
Age
Residence
Jimmy D. BATES
43
Milwaukee
Calvin NASH
45
Milwaukee
Tavaris CAIN
41
Milwaukee
Marville PAYNE
41
Milwaukee
Wayne POTTS, Jr.
35
Milwaukee
Montel D. IVORY
27
Milwaukee
Dujuan HARRISON
37
Milwaukee
Jebar CANNON
39
Milwaukee
Jason ASHLEY
40
Milwaukee
Anthony MEEKS
32
Mississippi
Paul PARKER
35
Milwaukee
Devon WOOTEN
34
Milwaukee
Dontelle CARR
47
Milwaukee
Shinae CASTINE
32
Milwaukee
Marlon D. PICKENS
41
Milwaukee
As part of today’s operation, law enforcement officers executed arrest warrants and search warrants at multiple locations in Milwaukee. The operation and charges are the culmination of a multi-year investigation that has resulted in the seizure of significant amounts of heroin and cocaine, and at least 15 firearms.
In court today, prosecutors described the conspiracy as being connected to multiple shooting incidents in the Milwaukee area. The indictment specifies numerous firearms possessed as part of the conspiracy, including handguns, assault rifles, and a Striker 12-guage shotgun, known as a “Street Sweeper,” which is no longer sold in the United States because federal law defines it as a destructive device.
If convicted of the conspiracy to distribute heroin and cocaine, the defendants face at least a minimum term of 10 years in prison, and up to life. Convictions on the firearms and robbery-conspiracy counts would expose the defendants to additional terms of incarceration.
The investigation was led by law enforcement officers from the Drug Enforcement Administration (DEA), North Central High Intensity Drug Trafficking Area (HIDTA), Milwaukee Police Department (MPD), and Homeland Security Investigations (HSI). Multiple additional law enforcement agencies participated in today’s operation, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Federal Bureau of Investigation (FBI); Wisconsin Department of Justice’s Division of Criminal Investigation (DCI); Waukesha County Sheriff’s Office; Milwaukee County Sheriff’s Office; West Allis Police Department; Wauwatosa Police Department; and Greenfield Police Department.
“Today’s operation sends a loud message: All levels of law enforcement are committed and cooperating to bring justice to drug traffickers and violent criminals in Milwaukee,” said U.S. Attorney Krueger. “We know that most violent crime is committed by a small number of individuals. As part of Project Safe Neighborhoods, we are focusing enforcement resources where they are needed most. At the same time, we know that law enforcement is only part of the solution. Project Safe Neighborhoods also fosters partnerships with community organizations and positive prisoner reentry efforts to help prevent violent crime. It will take all parts of our community working together to ensure safe neighborhoods.”
“The strength of the Drug Enforcement Administration is, in many ways, derived from close relationships forged with our numerous local and federal law enforcement partners. This significant investigation resulted from the cooperative leadership of Chief Morales and U.S. Attorney Krueger—and of course the dedication of the men and women of the Milwaukee Police Department, other Milwaukee-area police departments, and the U.S. Attorney’s Office. The DEA is committed to these partnerships—these force multipliers—to effectively combat criminal organizations responsible for drug threats and violence in Milwaukee and throughout the United States,” said Associate Special Agent in Charge Robert J. Bell.
“Having a good relationship with your system partners is crucial to a successful mission,” said Milwaukee Police Chief Alfonso Morales. “Our relationship with the United States Attorney’s Office has led to some great arrests and, more importantly, some great convictions.”
At a press conference held to announce today’s charges, law enforcement leaders noted progress in reducing violent crime in Milwaukee. As of July 14, 2019, there had been 196 non-fatal shootings in Milwaukee this year. That is a 35% decrease compared to the same time in 2017, and a 40% decrease compared to a spike in violent crime that occurred in 2015. Thus, compared to this point in 2015, 133 fewer people were victims of a non-fatal shooting in Milwaukee.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer. The U.S. Department of Justice reinvigorated PSN in 2017, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
This case is being prosecuted by Assistant United States Attorney Laura S. Kwaterski and Assistant United States Attorney Philip T. Kovoor.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Department of Justice Enables Direct Tribal Access to FBI National Sex Offender RegistryRead the Press Release
Direct Access to FBI CJIS’s National Sex Offender Registry Helps Tribal Governments and Law Enforcement Track and Identify Sex Offenders
The U.S. Department of Justice announced a new tool on July 11, 2019 giving tribal governments the ability to directly input data and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems.
TTSORS is a no-cost registry system provided by the Justice Department’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). The Department’s Office of the Chief Information Officer (OCIO) developed the connections which allows tribes to seamlessly submit new and updated sex offender information directly from TTSORS to NSOR.
“The Department of Justice is dedicated to addressing the public safety crisis in American Indian and Alaska Native communities, including the high rates of sexual violence against women and children,” said Attorney General William P. Barr. “Providing a direct connection to the FBI National Sex Offender Registry gives tribal law enforcement the information they need to investigate and prevent these heinous offenses.”
American Indian and Alaska Native people suffer persistently high rates of victimization, including from sexual assault. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. In June, the department extended a deadline for tribes to apply for up to $167 million in federal funds through August 16, 2019, to support crime victims throughout Indian country.
“The direct connection between the National Sex Offender Registry and Tribes and Territories Sex Offender Registry System provides increased resources for identifying, tracking, and sharing information about persons convicted of committing these crimes,” said Gwendena L. Gatewood, Chairwoman of the White Mountain Apache Tribe of the Fort Apache Indian Reservation. “It will also allow for further improvements in providing a safer community for all involved to integrate tribal law, custom, tradition and practices in a comprehensive fashion consistent with holding offenders accountable.”
“Standing Rock has always had a priority of ensuring public safety,” said Mike Faith, Chairman of the Standing Rock Sioux Tribe. “Technological advances to our systems ensure that our SORNA staff are able to input offender information and get back in the field while ensuring compliance is maintained.”
The Sex Offender Registration and Notification Act, Title I of the Adam Walsh Child Protection and Safety Act of 2006, requires that, when an offender initially registers or updates his or her information in a jurisdiction, that the state, tribe, territory or District of Columbia must submit immediately the information to NSOR as well as other jurisdictions where the offender has to register. TTSORS is a fully functioning registry system that complies with SORNA requirements. TTSORS was created to assist the Indian tribes that have elected to implement SORNA.
Since 2015, the SMART Office, OCIO, the FBI, the Office of Tribal Justice, Community Oriented Policing Services and the Office for Victims of Crime, have worked together to develop the Tribal Access Program to provide tribes direct access to national crime information systems for both criminal and non-criminal justice purposes. This includes the ability to directly enter NSOR data and enhance the capacity to collect and submit fingerprints and palm prints to the FBI. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of 72 participating tribes.
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Green Bay Man Sentenced for Threatening and Obscene Telephone Calls to Daycare CentersRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 8, 2019, Michael J. Propst (age: 46) of Green Bay, Wisconsin was sentenced to 84 months in federal prison by Chief District Judge William C. Griesbach.
Propst was convicted of two counts of “Threatening Interstate Communications,” in violation of Title 18, United States Code, Section 875(c), and a single count of “Making Obscene or Harassing Telephone Calls,” in violation of Title 47, United States Code, Section 223(a)(1)(C). The charges stemmed from telephone calls made by Propst to two different daycare facilities in the State of Indiana. Propst phoned the daycare facilities and claimed that he had one of their pupils in his custody and was at that time violently raping the child causing the toddler to bleed and suffer internal injuries. The panicked daycare workers were forced to quickly perform a head-count of the children while they contacted authorities.
The Green Bay Office of the F.B.I. became involved and discovered that a federal investigation into Propst’s actions was underway in the State of Delaware. The investigation revealed that authorities linked Propst to similar obscene and threatening telephone calls in fifteen states stretching from Maine to California. Propst’s job as a long-haul trucker made it practically impossible for local authorities to investigate his obscene and threatening phone calls given that he and his telephone were constantly moving through different legal jurisdictions.
At the sentencing hearing, the government demonstrated an almost 20 year pattern of Propst engaging in telephone calls to daycare centers, schools, and retail establishments depicting the violent rape of young children. Records reflect that Propst was convicted by local authorities in the State of Florida in 1999 for making virtually identical obscene and threatening telephone calls while living in Polk County, Florida. In 2002, he was convicted by federal authorities in the Middle District of Florida and sentenced to 41 months of imprisonment. It appeared the calls only ceased while Propst was incarcerated. The evidence showed and Propst admitted that these calls were made for the purpose of his own sexual gratification.
In handing down the sentence, Chief Judge Griesbach noted the defendant’s pattern of criminal activity was very serious and far more than merely harassing in nature. Rather, the judge characterized Propst’s telephone calls as akin to “terrorism,” since they were intended to cause terror in the victims answering his calls. He cited Propst’s “poor character” and “less than credible statements of remorse” as justifying a substantial prison sentence of 84 months.
The judge’s sentence was more than two and a half times longer than is called for in the federal sentencing guidelines. Following his imprisonment, Propst will serve 36 months on federal supervised release.
This case was investigated by the F.B.I.’s Resident Agencies in Green Bay, Wisconsin, and Wilmington, Delaware, the U.S. Attorney’s Office for the District of Delaware, the Green Bay Police Department, and the Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Wisconsin Community Services, Inc. Voluntarily Discloses and Agrees to Pay over $500,000 to Resolve False Billings to Medicare and MedicaidRead the Press Release
United States Attorney Matthew D. Krueger announced today that Wisconsin Community Services, Inc. (“WCS”) agreed to pay $537, 904.33 to the United States and the State of Wisconsin to resolve false claims for prescription medications submitted by WCS to Medicare and Medicaid in violation of the False Claims Act, 31 U.S.C. §3729-3733.
WCS is a not-for-profit corporation based in Milwaukee, Wisconsin. WCS provides a range of services, including outpatient mental health services and an associated pharmacy. WCS voluntarily disclosed to the United States Attorney’s Office that one of its pharmacists submitted claims to Medicare and Medicaid that misrepresented the prescription drugs dispensed by WCS over several years. For example, WCS dispensed generic formulations of prescription medications but billed Medicare and Medicaid for more expensive name brand formulations of the medications. As a result, Medicare and Medicaid paid WCS significantly more reimbursement than it was entitled to receive.
“We appreciate that WCS voluntarily disclosed its violations of the False Claims Act and cooperated with the government’s investigation,” stated United States Attorney Krueger. “At the same time, this settlement will make Medicare and Medicaid whole and protect taxpayer funds.”
“Medicare and Medicaid providers cannot misrepresent the drugs they dispense in order to increase their billings,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our federal, state and local partners to protect the health and safety of Medicare and Medicaid patients and vital taxpayer dollars.”
Assistant United States Attorney Michael Carter represented the government in this matter. The OIG and the Wisconsin Department of Justice Medicaid Fraud Control & Elder Abuse Unit assisted in the investigation. The settlement agreement states allegations only; the defendant does not admit liability for the allegations.
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Muskego Small Business Owner Sentenced for Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced on June 27, 2019 that Steven M. Rader (age 37) of Muskego, Wisconsin, was sentenced to five months in federal prison for stealing more than $89,000 from the federal government via a tax evasion scheme that began in 2012. Rader was also ordered to pay more than $195,000 in restitution.
Rader’s tax evasion scheme related to an entertainment business he owned and operated starting in 2012. Despite the fact that the business generated significant income, Rader failed to report any of that income on his federal tax returns for the years 2012 to 2014. In total, Rader understated his income by over $500,000 and underpaid his taxes by over $89,000.
Rader also made significant efforts to conceal his tax evasion by filing false amended tax returns and lying to federal investigators about his sources of income.
While sentencing Rader, U.S. District Judge Joseph P. Stadtmueller discussed the vital importance of adequately and appropriately filing tax returns and stated that the sentence imposed was necessary to promote respect for the law as an institution.
“The honest women and men who pay their taxes dutifully deserve to know that tax cheats face time in federal prison. We are committed to defending the integrity of our government by prosecuting tax crimes aggressively.” said U.S. Attorney Krueger.
“Tax violations have incorrectly been referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone such as Steven Rader tries to manipulate our nation's tax system," said Tara Sullivan, IRS Criminal Investigation Special Agent in Charge, Chicago Field Office. "The courts have overwhelmingly and continuously shown that you will be held accountable for such actions, and today's sentencing is a costly reminder."
This matter was investigated by the Criminal Investigation Division of the Internal Revenue Service and was prosecuted by Assistant United States Attorneys Julie F. Stewart and Matthew Jacobs.
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Neenah Resident Sentenced to 15 Years of Imprisonment for Methamphetamine and Firearm PossessionRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on June 21, 2019, Tou W. Vang, a/k/a “Meng Vang” (age: 38), of Neenah, Wisconsin, was sentenced for violating Title 18, United States Code, Section 924(c) for possessing a firearm in furtherance of a drug trafficking crime, and Title 21, United States Code, Section 841(a), for possessing with the intent to distribute over 50 grams of pure methamphetamine.
According to court documents, on December 20, 2018, Appleton Police initiated a traffic stop on Vang’s minivan. The police pursued Vang to a residence off Wisconsin Avenue in Appleton, where they observed him attempt to hide a 9 mm handgun in the snow behind the residence. While speaking with the officers, Vang informed them that he was “high as a kite” and there was “two pounds of marijuana in the van.” Officers searched the vehicle and in addition to the marijuana, located approximately 100 grams of methamphetamine, $4,001 in cash, digital scales for weighing drugs prior to distribution, and firearm ammunition. A subsequent search of Vang’s residence revealed additional drug paraphernalia, a drug distribution ledger, and several homemade firearm silencers.
In pronouncing sentence, Chief U.S. District Judge William C. Griesbach noted the serious nature of Vang’s offense and the need to send a strong message of deterrence to Vang and anyone else who might attempt to distribute drugs in Northeast Wisconsin. The judge also noted his concern over Vang’s construction of firearm silencers. The judge ordered Vang to serve 10 years for possessing methamphetamine with the intent to distribute and an additional 5 years for possessing a firearm while involved in drug trafficking. Upon his release from federal prison, Vang will serve 5 years on supervised release.
The case was investigated by the Appleton Police Department and the Wisconsin Department of Justice, Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Green Bay Man Indicted for ArsonRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on June 18, 2019, a federal grand jury issued an indictment against William A. Julius (age: 57) of Green Bay, Wisconsin.
The indictment alleges that Julius “did maliciously damage by fire, a building located at 332 South Madison Street” in the City of Green Bay, in violation of Title 18, United States Code, Section 844(1). If convicted of the charge, Julius faces a mandatory 5-year prison term and could be imprisoned for up to 20 years. He also faces a fine of up to $250,000.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Green Bay Fire Department and the Green Bay Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Waupun Resident Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Kimberly Bagneski (age 48) was sentenced in federal court in Milwaukee to 12 months and one day in prison, to be followed by three years of supervised release, and ordered to pay $84,129 in restitution to the IRS.
Ms. Bagneski, who lives in Waupun, Wisconsin, previously pleaded guilty to filing false tax returns seeking fraudulent tax refunds. According to court documents, Ms. Bagneski offered to prepare and file tax returns for people for free or for a nominal fee. She then submitted returns seeking inflated tax refunds, typically by claiming fictitious business losses. Generally, Bagneski directed the IRS to send the refund to her bank account and then paid the taxpayer a fraction of the money she received. Bagneski also recruited her sister-in-law to assist her in filing the false returns in exchange for a portion of the fraudulent refund. During the years 2010 through 2015, Bagneski and her sister-in-law prepared and filed 20 false federal income tax returns, as well as 19 false state tax returns.
This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.
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Menomonee Falls Resident Pleads Guilty to Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that John Miller Ragland (Age 71), who previously resided in Menomonee Falls, Wisconsin, appeared in federal court and pleaded guilty to attempting to evade his federal income taxes, in violation of 26 U.S.C. § 7201. Based on his guilty plea, Ragland faces up to 5 years in prison, a fine of up to $250,000, or both. Ragland has also agreed to make restitution to the IRS for the taxes he attempted to evade, which exceeded $1,000,000, as well as interest on those unpaid taxes. Ragland’s sentencing is scheduled for December 18, 2019.
According to documents filed in federal court in conjunction with Ragland’s guilty plea, during the years 2007 through 2013, Ragland operated a number of business ventures through which he acted as an independent sales representative in the United States and elsewhere, including Hong Kong, China.
As the result of his efforts on behalf of a Chinese manufacturer, Ragland received more than $3,000,000 in commissions. Ragland deposited these commissions into a bank account he maintained in Hong Kong, but failed to report any of this income on his federal income tax returns and failed to disclose the foreign bank account in Hong Kong. As the result of these actions, Ragland underreported and underpaid his federal income taxes by more than $1,000,000.
This matter was investigated by agents of the Internal Revenue Service – Criminal Investigations and is being prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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Southern California Man Sentenced to 11 Years’ Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on June 10, 2019, Perry Hicks (age: 32) of Corona, California, was sentenced to a term of eleven years in federal prison, followed by five years of supervised release, for conspiring to possess with the intent to distribute 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Section 846.
According to court documents, while on pre-trial release in a separate federal drug-trafficking case in the Central District of California, Hicks sent methamphetamine via the U.S. Mail on six occasions to co-conspirators in Milwaukee, Wisconsin. On three occasions, law enforcement seized drug-laden parcels sent by Hicks; specifically, 483.7 grams (net) of 98% pure methamphetamine sent on August 27, 2018; 441.9 grams (net) of 97% pure methamphetamine sent on September 5, 2018; and 450.3 grams (net) of 99% pure methamphetamine sent on September 19, 2018.
In pronouncing sentence, U.S. District Judge Lynn Adelman noted the serious nature of the offense and the history and characteristics of the defendant.
The case was investigated by the United States Postal Inspection Service, the Drug Enforcement Administration, the Milwaukee Police Department, and the North Central HIDTA Office, and was prosecuted by Assistant United States Attorney Robert J. Brady, Jr.
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Mexican Citizen Pleads Guilty in Federal Court to Drug Distribution and Firearms Charges and Transporting Women in Interstate Commerce for Purposes of ProstitutionRead the Press Release
Matthew Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on June 6, 2019, Jose Facio-Santos (age 39), a Mexican citizen, pleaded guilty to three felony counts related to drug distribution, illegal firearm possession, and the transportation of a female in interstate commerce for purposes of prostitution. Specifically, this includes one count of distribution of heroin, in violation of Title 21, United States Code, §§ 841(a)(1) and (b)(1)(C); one count of possession of a firearm by an illegal alien, in violation of Title 18, United States Code, § 922(g)(5); and one count of transporting and aiding and abetting the transportation of an individual in interstate commerce with the purpose being for the individual to engage in prostitution, in violation of Title 18, United States Code, §§ 2421 and 2.
According to admissions made in connection with his plea, Facio-Santos led a prostitution brothel from his Milwaukee residence from approximately 2013 through October 2018. On a weekly basis, he traveled to various pre-determined meet locations to pick up a different woman, whom he then prostituted at his residence, expecting each to perform a certain number of sex acts during that week in which she stayed at his residence. Facio-Santos collected payment for the woman's services and promoted his prostitution brothel through the use of business cards and mass text messages each week broadcasting the woman he transported back to his house. Facio-Santos’ Milwaukee brothel was connected to a network of out-of-state brothels.
In addition to the operation of his Milwaukee brothel, Facio-Santos was also involved in trafficking cocaine, heroin, and firearms, mostly from his Milwaukee residence. During the investigation, Facio-Santos sold two firearms, specifically, a Romarm WASR rifle with a 30-round magazine, and a Norinco SKS rifle, also containing a high-capacity magazine, to an individual acting under the direction and control of law enforcement. Furthermore, as part of the investigation, law enforcement executed a search warrant at Facio-Santos’ residence, at which time they located, among other items, a 9 mm Smith and Wesson, semi-automatic pistol, which had previously been reported stolen.
Facio-Santos faces a maximum term of imprisonment of up to 20 years for his drug trafficking, up to 10 years for being an illegal alien in possession of a firearm, and up to 10 years for transporting women for purposes of prostitution. He also faces up to life on supervised release and deportation from the United States. His sentencing hearing is set for December 17, 2019 at 9:30 a.m. before U.S. District Judge Pamela Pepper.
The case was investigated by Milwaukee Police Department, the United States Immigration and Customs Enforcement - Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Karine Moreno-Taxman and Elizabeth M. Monfils.
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Lake Geneva Resident Pleads Guilty to Manufacturing and Distributing Anabolic SteroidsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on June 5, 2019, Russell Spalding of Lake Geneva, Wisconsin, pleaded guilty to three counts relating to manufacturing and distributing anabolic steroids. This includes one count of conspiracy to distribute anabolic steroids in violation of Title 21, United States Code, Section 846, one count of possession with intent to distribute anabolic steroids in violation of Title 21, United States Code, Section 841, and one count of maintaining a drug-involved premises, in violation of Title 21, United States Code, 856. Spalding’s wife, Kathryn Spalding, a codefendant in the case, pleaded guilty to the conspiracy to distribute anabolic steroids on February 14, 2019.
According to admissions made in connection with his plea, Spalding (39 years old) led an anabolic steroid manufacturing and distribution operation from approximately October 2014 through October 8, 2015. He called his business “Cerastes Pharmaceuticals.” He imported raw and processed anabolic steroids from the United Kingdom and China and sold the steroids to others around the United States through Facebook groups. He had several people help him import, process, sell, and ship the steroids. As part of the investigation, law enforcement agents executed a search warrant at an apartment in Lake Geneva, which served as Spalding’s steroid laboratory. There, the agents seized thousands of vials, beakers, liquid filling machines, measuring pumps, more than 12,000 capsules containing anabolic steroids, approximately 8,000 milliliters of liquid containing anabolic steroids, and several kilograms of raw steroid powder.
Spalding faces a maximum term of up to 40 years in prison on all of the counts, and up to life on supervised release. His sentencing hearing is set for November 26, 2019 at 1:30 p.m.. before U.S. District Judge Pamela Pepper.
This case was investigated by the Drug Enforcement Administration and the Walworth County Sherriff’s Office. The case is being prosecuted by Assistant United States Attorney Benjamin Proctor.
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Milwaukee Man Indicted for Offenses Involving Heroin, Fentanyl, Cocaine, and FirearmsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that a federal grand jury had indicted Jonathan C. Copeland (age 57) for possession with intent to distribute at least 100 grams of heroin, at least 40 grams of fentanyl, cocaine, and marijuana. In addition, the indictment charges Copeland with possessing firearms in furtherance of his drug trafficking crime and possessing firearms after having been convicted of multiple felonies.
If convicted of the drug charge, Copeland faces a mandatory minimum of five years’ imprisonment with a maximum of 40 years in prison, a $5,000,000 fine, and at least 4 years on supervised release. If convicted of possessing firearms in furtherance of his drug trafficking, Copeland faces a mandatory minimum of five years and a maximum of life in prison, which must run consecutively to any other sentence. Finally, if convicted of being a felon in possession of a firearm, because his criminal history qualifies him as an Armed Career Criminal, Copeland faces a mandatory minimum of 15 years in prison.
The investigation of this case was conducted by the Federal Bureau of Investigation (FBI) Southeastern Wisconsin Regional Gang Task Force, which includes Task Force Officers from the Milwaukee Police Department – District Five. This case is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
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Kewaunee County Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on May 30, 2019, Sean R. Evansen (age: 36) of Algoma, Wisconsin, was sentenced to 9 years in federal prison by Chief District Judge William C. Griesbach.
Evansen, a registered sexual offender in the State of Wisconsin based on a Calumet County Circuit Court conviction for first-degree sexual assault of a child in 2000, possessed thousands of digital images and videos of child pornography, many depicting infants and toddlers.
In handing down the sentence, Chief Judge Griesbach noted the defendant’s prior record of sexual assault and emphasized the serious nature of the charge. He further stated his belief that a 9-year sentence served the interests of justice in this particular case. Following his release from prison, Evansen will spend 6 years on supervised release. He will continue to register as a sexual offender.
This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation’s Internet Crimes Against Children (ICAC) Task Force, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ 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.projectsafechildhood.gov.
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Keshena Woman Indicted for Involuntary Manslaughter and Aggravated Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on May 29, 2019, a federal grand jury returned a three-count indictment against a woman allegedly involved in a fatal motor vehicle accident in the Legend Lake area of the Menominee Indian Reservation. The indictment charged Erin Schweitzer, also known as Erin Martin (age: 39), of Keshena, which is located on the Menominee Indian Reservation, with Involuntary Manslaughter in violation of 18 U.S.C. 1112.
Schweitzer faces a maximum of 8 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release if convicted of this offense. The indictment also charged Schweitzer with two counts of Assault Resulting in Serious Bodily Injury in violation of 18 U.S.C. 113(a)(6). For each of these counts, Schweitzer faces a maximum of 10 years in prison, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about April 18, 2019, Schweitzer was allegedly operating a motor vehicle while under the influence of an intoxicant when her driving resulted in a 2-car accident that killed a passenger and seriously injured two other occupants in the other vehicle. Schweitzer is an enrolled member of the Menominee Indian Tribe of Wisconsin.
The Menominee Tribal Police Department, Wisconsin State Patrol, Wisconsin State Laboratory of Hygiene, and Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Manitowoc Man Sentenced to 84 Months in Federal Prison for $3,100,000 Ponzi Scheme That Defrauded Elderly VictimsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on May 29, 2019, James A. Nickels (age 68), of Manitowoc, Wisconsin was sentenced to 84 months in federal prison for carrying out a $3,100,000 Ponzi scheme that defrauded 37 victims, most of whom were elderly. Nickels had earlier pleaded guilty to one count of wire fraud in violation of 18 U.S.C. § 1343, and one count of money laundering in in violation of 18 U.S.C. § 1957.
The information presented at the sentencing hearing showed that Nickels was a prominent member of the Manitowoc community for many years, and used that status to solicit family, friends, and neighbors, many of whom were elderly, to “invest” in his business, which was largely a Ponzi scheme. Twelve persons who had lost money, or whose deceased family members had lost money due to the fraud, gave in-person statements at the sentencing, explaining the financial and emotional harm and sense of betrayal that the defendant’s actions caused them.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach described the defendant’s actions as “a scam” whose victims were vulnerable. He stated that the defendant had committed an “evil, horrible” crime that was “grotesque” and had “high impact.” The Chief Judge further reprimanded the defendant for a lack of remorse, saying that this was not a matter of business plans not working out, but a “deliberate, sophisticated effort to defraud” that was “not an aberration.” The Chief Judge further stated that Nickels’ conduct was a “betrayal of trust” of friends and family that gained him a great benefit, and that the magnitude of the offense was a “huge aggravating factor” requiring a sentence that both punished and deterred.
“As a society, we have an obligation to protect our older members from predators,” said U.S. Attorney Krueger. “This seven-year sentence sends a clear message that taking advantage of elderly persons will be met with severe punishment. This case highlights the Department of Justice’s commitment to working with state and local partners to combat elder fraud.”
“When scammers like James Nickels take advantage of honest citizens who are simply looking to invest their hard-earned savings and retirement funds for a better life, it’s not only reprehensible, but devastating,” stated Special Agent in Charge Tara Sullivan of IRS Criminal Investigation, Chicago Field Office. “Today’s 84-month sentencing demonstrates how federal law enforcement works together to help stop the criminal behavior of those who prey on innocent investors in order to enrich themselves.”
IRS Criminal Investigation and the Wisconsin Department of Financial Institutions investigated the case. Jan Klika provided victim-witness support. Assistant U.S. Attorneys Zachary J. Corey and Stephen A. Ingraham prosecuted the case.
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American Living in Switzerland Charged with Wire Fraud and Causing Rare Antique Automobile to be Transported in Foreign CommerceRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that yesterday a federal grand jury returned a five-count Indictment against Christopher C. Gardner (age: 63), an American citizen living in Mont-Sur-Rolle, Switzerland, charging Gardner with wire fraud and causing a stolen motor vehicle to be transported in foreign commerce.
According to the indictment, on March 4, 2001, Christopher Gardner burglarized a garage in Milwaukee, Wisconsin, and stole a 1938 Talbot Lago T150C-SS Teardrop Coupe—one of only approximately 16 such automobiles ever made. Gardner is alleged to have stored the auto until July 2005.
The indictment alleges that in October 2005, Gardner forged documents indicating that the auto had been recovered and that Gardner was in lawful possession of it.
The indictment further alleges that Gardner exported the stolen auto to Switzerland in 2006; had it restored in France between 2007 and 2015; and offered it for sale to a potential buyer in Illinois in 2015.
According to the indictment, in August 2015, the Illinois buyer—in reliance on Gardner’s allegedly false statements and forged documents—purchased the auto through an LLC for a total of $7.6 million, including $6.8 million to be paid directly to Gardner. Gardner is alleged to have caused the auto to be transported in foreign commerce from Switzerland to Chicago, Illinois, in December 2015.
The maximum term of imprisonment for the each of the wire fraud charges is 20 years. The charge of transportation of a motor vehicle in foreign commerce carries a maximum term of imprisonment of 10 years. Each charge also carries a maximum fine of $250,000 and calls for forfeiture of the proceeds of the crime.
The following agencies participated in the investigation: the Milwaukee Office of the Federal Bureau of Investigation, the Milwaukee Police Department, Homeland Security Investigations, and the French National Police.
“We commend the FBI and each of the law enforcement agencies whose teamwork and persistence allowed these important charges to be brought,” said U.S. Attorney Krueger. “Only through solid partnerships can crimes that span borders be effectively prosecuted.”
Special Agent in Charge Robert E. Hughes, of the FBI Milwaukee Field Office, extended his thanks to the law enforcement partners involved in this investigation, and stated: “This indictment demonstrates the importance of both domestic and international law enforcement cooperation. The FBI continually builds, maintains, and capitalizes on such partnerships, so that whether an investigation leads us across the city, or across the ocean, we have the resources necessary for success.”
This criminal case is being prosecuted by Assistant United States Attorney Scott J. Campbell.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Former Tax Protestor Sentenced to Prison for Evading TaxesRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Richard J. Clark (age 71) was sentenced on May 21, 2019 in federal court in Milwaukee to 14 months in prison, to be followed by three years of supervised release, and ordered to pay $213,000 in restitution to the IRS.
Clark, who resides in Mukwonago, previously operated Foremost Realty, LLC, a real estate business that listed, maintained, and sold foreclosed property in southeastern Wisconsin. During the years 2008 – 2013, Clark, through his business, received approximately $1.6 million in commissions. Despite receiving these commissions, Clark filed tax returns that either listed $0 on all lines of the returns, reporting no income or tax obligations, or reported very minimal income and taxes. As a result, during the years 2008-2013, Clark evaded more than $400,000 in federal income taxes.
Clark was previously the subject of a civil action brought by the U.S. Department of Justice concerning his 2002-2007 tax returns, on which Clark also reported no income or taxes. At sentencing, Clark acknowledged his former tax-protestor beliefs but stated that he had abandoned those misguided beliefs and intended to dedicate himself to making amends and repaying the taxes he owes.
This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.
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Five People Charged with Forced Labor Conspiracy Involving Trafficking of Victims from Georgia to Work on Wisconsin FarmsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that five people were indicted for conspiracy to commit forced labor, labor trafficking, and five additional labor-related offenses. The defendants are alleged to have trafficked the victims from Georgia to Wisconsin to work on farms located in the Eastern District of Wisconsin in 2016.
The indictment named:
Name
Age
Residence
Saul Garcia
49
Moultrie, GA
Saul Garcia, Jr
26
Moultrie, GA
Daniel Garcia
28
Moultrie, GA
Consuelo Garcia
45
Moultrie, GA
Maria Remedios Garcia-Olalde
52
Mexican National
According to the indictment, the defendants conspired to provide the labor and services of fourteen adult victims, all of whom are male Mexican nationals, by means of (1) serious harm and threats of serious harm, (2) abuse and threatened abuse of legal process, and (3) a scheme intended to cause the victims to believe that, if they did not perform such labor and services, they would suffer serious harm. The indictment alleges that to restrict the victims’ movement and ability to travel while in Wisconsin, the defendants’ possessed the victims’ passports. Two of the five defendants—Saul Garcia Sr. and Maria Remedios Garcia-Olalde—were also indicted on obstruction charges.
“Trafficking another human being is a particularly vile crime,” said U.S. Attorney Krueger. “The Department of Justice is committed to prosecuting anyone who seeks to sell another person’s freedom.”
If convicted, the defendants face up to 20 years in prison on the charges of forced labor conspiracy, trafficking with respect to forced labor, financial benefit from forced labor, obstruction of a labor trafficking investigation, and witness tampering. The indictment also identifies fifteen real properties located in Georgia.
The defendants were charged based on a multi-year investigation by law enforcement agents and officers from the Federal Bureau of Investigation’s Human Trafficking Task Force, including special agents and officers representing the Department of Labor Office of Inspector General, the Federal Bureau of Investigation, Homeland Security Investigations and the City of Racine Police Department.
The case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski, Erica J. Lounsberry, and Karine Moreno-Taxman.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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National Peace Officers Memorial Day: Honoring Those Who Serve and ProtectRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, has made the following statement, recognizing the service and sacrifice of federal, state, local, and tribal law enforcement on the occasion of National Peace Officers Memorial Day and during National Police Week:
“In 1962, to honor law enforcement officers killed or disabled in the line of duty, Congress passed and President Kennedy signed a joint resolution declaring May 15 as National Peace Officers Memorial Day. Unfortunately, in the last twelve months alone, three Milwaukee Police Officers – Matthew Rittner, Michael Michalski, and Charles Irvine, Jr. – were killed while protecting and serving our community. We must never forget the service and sacrifice of these officers and their fallen brothers and sisters across the country.”
“We also are in the middle of National Police Week, and I urge each of us to take a moment to recognize and honor the law enforcement professionals who work tirelessly to keep all of us and our communities safe. We thank our law enforcement partners for their hard work, dedication, and sacrifice.”
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Appleton Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on May 10, 2019, Seth M. Rector (age: 37) was sentenced by the Honorable Chief Judge William C. Griesbach to two years in prison and eight years supervised release following his guilty plea to possession of child pornography, contrary to 18 U.S.C. Sections 2252A. As part of his sentence, Rector must also comply with sex offender registry requirements. Those requirements mandate Rector to advise registry officials where he is living, working or attending school.
According to court documents, beginning in about November 2016, Rector obtained adult and child pornography via the BitTorrent network. Law enforcement observed that Rector was sharing files with names suggestive of child pornography. On September 26, 2017, law enforcement executed a search warrant at Rector’s residence. Two desk top computers were seized and later searched. The two computers contained a total of 573 child pornography image files as well as BitTorrent file sharing software. In imposing his sentence, Judge Griesbach stressed the serious nature of the offense, including the horrific nature of the images as well as the length of time over which he obtained the images.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney William Roach, who was assisted by Victim Witness Specialist Jan Klika.
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Former Milwaukee Alderman Charged with Wire FraudRead the Press Release
United States Attorney Matthew D. Krueger announced that a federal grand jury has returned an indictment charging a former Milwaukee alderman, Willie C. Wade (age: 56), with three counts of wire fraud. According to the indictment, Wade obtained $30,000 in cash from a cooperating individual by falsely claiming that he was negotiating on behalf of a current Milwaukee alderman to accept a bribe in exchange for a vote in favor of approving licenses for a downtown strip club. According to the indictment, the alderman was not aware of Wade’s representations and had never offered or agreed to accept any bribe.
Each count carries a maximum penalty of 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release following any prison term.
In announcing the charges, United States Attorney Krueger specifically commended the hard work and dedication of the Milwaukee Division of the Federal Bureau of Investigation (FBI) during the investigation of this matter.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI and has been assigned to Assistant United States Attorneys Richard G. Frohling and Paul L. Kanter for prosecution.
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Former Bank Executive Charged with Bank FraudRead the Press Release
United States Attorney Matthew D. Krueger, has announced that on May 7, 2019, a grand jury sitting in the Eastern District of Wisconsin returned a 13-count indictment charging Archie G. Overby, 70, formerly of Waupaca, Wisconsin, now living in Plano, Texas, with bank fraud in violation of Title 18, United States Code, Section 1344, and misapplication of bank funds by a bank officer, in violation of Title 18, United States Code, Section 656. If convicted of these offenses he faces up to 30 years in prison and a $1,000,000 fine on each count.
The indictment alleges that between 2010 and 2013, Overby, who was then president, CEO and Chairman of the Board of First National Bank in Waupaca, Wisconsin, defrauded the bank by expensing the bank for luxurious personal travel and entertainment for himself, his family, and various friends. Among the trips that he is alleged to have taken at bank expense are trips to Tanzania, the Cayman Islands and St. Maarten, as well as to luxury hotels and resorts in California, Texas, Florida, and North Carolina. The indictment alleges that this personal travel exceeded $1.2 million dollars and that he caused the bank to provide him with an additional $320,930 to cover taxes on the ill-gotten proceeds.
The case was investigated by Special Agents of the Federal Deposit Insurance Corporation Office of Inspector General and the United States Treasury Office of Inspector General. It is being prosecuted by Assistant United States Attorney Carol L. Kraft.
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Alabama Man Indicted for Attempts to Entice Wisconsin Minor to Engage in IncestRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, has announced that yesterday, a federal grand jury returned a four-count indictment against Tyler A. Blackmon (age: 28) of Prattville, Alabama.
According to the indictment, on four occasions between September 27, 2018, and October 10, 2018, Blackmon attempted to entice a Wisconsin child identified in the indictment as “Minor Child A” to engage in acts of incest, a felony under Wisconsin law.
Blackmon faces four charges of attempting to “persuade, induce, entice, and coerce” the child to engage in criminal sexual activity, incest, contrary to Title 18, United States Code, Sections 2422(b) and 2. As to each count, he faces a mandatory minimum sentence of 10 years and up to a lifetime of incarceration in federal prison.
This case was investigated by the Seymour Police Department with the assistance of the Prattville Police Department in Alabama. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Marcus Hutchins Pleads Guilty to Creating and Distributing the Kronos Banking Trojan and UPAS Kit MalwareRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on May 2, 2019, Marcus Hutchins, aka “MalwareTech,” pleaded guilty to two counts relating to his creation and distribution of the Kronos banking Trojan and UPAS Kit malware. This includes one count of conspiracy to commit computer fraud in violation of Title 18, United States Code, Section 371, and one count of advertising a device used to intercept electronic communications, in violation of Title 18, United States Code, 2512(1)(c)(i).
According to admissions made in connection with his plea, Hutchins, age 24, developed UPAS Kit and Kronos and then worked with an accomplice to sell the malware programs for profit. Both UPAS Kit and Kronos were designed to be deployed secretly on victim computers, and then to intercept communications and transmit personal information, including usernames, passwords, email addresses, and financial data to the person controlling malware program. The malware was specially tailored to target victims’ banking information. Since 2014, Kronos has been used to infect numerous computers around the world and steal banking information.
Hutchins and his accomplice, “Vinny,” advertised Kronos and UPAS on various websites, including the AlphaBay market and Darkode forum. The advertisements highlighted the ability of the malware to steal information and avoid antivirus programs. Hutchins updated the malware code as needed, and Vinny and Hutchins shared profits from the sales.
“Vigorous prosecution of cybercrimes is vitally important because the stakes are so high: The proliferation of malware poses serious threats to our nation’s infrastructure, our businesses, and our personal information,” said U.S. Attorney Krueger. “We commend the FBI’s Cyber Division for its excellent work in investigating this sophisticated and dangerous crime.”
Hutchins faces a maximum term of 5 years imprisonment and up to one year of supervised release on each count. His sentencing hearing is set for July 26, 2019, at 11:30 a.m before U.S. District Judge J.P. Stadtmueller.
This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee. The case is being prosecuted by Assistant United States Attorneys Benjamin Proctor and Benjamin Taibleson.
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