Eastern District of Wisconsin
Press releases recorded for this federal judicial district.
Florida Man Sentenced for Green Bay Area Gas Pump Skimming ScamRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 17, 2018, Alain Ceballos-Rodriguez (age: 37), a Cuban citizen living in Tampa, Florida, was sentenced to 48 months in federal prison for his violation of Title 18, United States Code, Sections 1028A and 1029(a)(1), involving credit card fraud and aggravated identity theft.
In March of 2017, the Brown County Sheriff’s Office began investigating reports of skimming devices found attached to credit card readers at Green Bay area gas station pumps. The investigation revealed that information from the skimming devices would be transmitted via Bluetooth technology to a laptop which would then be used by the perpetrators to create “clone” cards. Those clone cards were then given to individuals, including Mr. Ceballos-Rodriguez, who would purchase Wal-Mart gift cards valued at up to $1,000 per card. Ceballos-Rodriguez and his co-conspirators utilized the self-checkout kiosks to purchase hundreds of gift cards at Wal-Mart and Sam’s Club locations throughout the Eastern District of Wisconsin. Those Wal-Mart gift cards were then taken back to Florida where they were used or sold online at discounted prices.
Chief Judge William C. Griesbach in pronouncing sentence noted the serious problem nationwide with credit card skimmers being attached to ATM machines and gas pump credit card readers. He further noted that while Ceballos-Rodriguez was a lower-level participant, his participation was part of a much larger and well-organized fraud ring based in Florida largely comprised of Cuban nationals. The judge noted the overwhelming number of individuals whose financial information had been compromised by the scheme and believed a strong prison sentence was necessary to deter Ceballos-Rodriguez and others from engaging in similar behavior. In addition to the 48 months term of imprisonment, Ceballos-Rodriguez will spend three years on supervised release.
This case was investigated by the Brown County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Megan J. Paulson and Daniel R. Humble.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Milwaukee Man Indicted for Firearm Offense in Village of Fox CrossingRead the Press Release
United States Attorney Matthew D. Krueger announced that on July 10, 2018, a federal grand jury returned a one-count indictment against a man allegedly involved in a firearms offense in the Village of Fox Crossing in Winnebago County. The indictment named Nicholas O. Nelson (age: 35) of Milwaukee. The indictment charged Nelson with being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, 922(g) (1). If convicted, Nelson faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about February 26, 2017, while at a location in the Village of Fox Crossing, Nelson possessed a 40-caliber semiautomatic handgun. Nelson was prohibited from possession of firearms at the time of the incident.
This case is being prosecuted as part of the Project Safe Neighborhood 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 Fox Crossing Police Department investigated the case, with assistance from the Wisconsin State Crime Laboratory. 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 his guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Textbook Theft Duo Targeted University of Wisconsin SchoolsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 10, 2018, a federal grand jury returned an indictment against Ryan Scott Lewis (age: 35) and Genisis Garcia Abellar (age: 35) both of Houston, Texas.
According to the indictment, Lewis and Abellar stole textbooks from instructors’ offices at several University of Wisconsin System schools, including: University of Wisconsin – Green Bay, University of Wisconsin – Whitewater, University of Wisconsin – Stout, and University of Wisconsin – River Falls. Lewis and Abellar then shipped the textbooks to a business in the State of Texas, which in turn sold the books to college students. The duo are also alleged to have carried out this scheme at colleges in Minnesota, North Dakota, Arizona, New Mexico, and Washington State.
Both face charges of conspiracy to transport stolen goods and interstate transportation of stolen property, contrary to Title 18, United States Code, Sections 371 and 2314. If found guilty of the charges, Lewis and Abellar each face up to 15 years’ imprisonment.
This case was investigated by the University of Wisconsin - Green Bay Police Department, the Wisconsin Department of Justice’s Division of Criminal Investigation, 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 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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Green Bay Woman Indicted for Income Tax SchemeRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Alma Ramirez (age 40) of Green Bay appeared in federal court in Green Bay to answer charges brought against her in a 29-count indictment. Specifically, Ms. Ramirez is charged with 5 counts of wire fraud, 5 counts of aggravated identity theft, and 19 counts of assisting in the filing of false federal income tax returns.
According to the indictment, during the period from March 2013 through May 2016, Ms. Ramirez, and others working with her and at her direction, prepared and filed more than 60 false federal income tax returns in the names of various individuals fraudulently seeking more than $300,000 in federal income tax refunds. These tax returns included false information concerning the taxpayer’s employment, wages, and the amount of federal income taxes that had been withheld from those wages, dependents, and the taxpayer’s eligibility for various tax credits.
The indictment also alleges that Ramirez committed identity theft by using without lawful authority the names and social security numbers of individuals to commit her fraud scheme. If convicted of the wire fraud offenses Ms. Ramirez faces up to 20 years in prison, a fine of up to $250,000, or both. If convicted of the aggravated identity theft charges, Ms. Ramirez will face a mandatory 2 year-term of imprisonment consecutive to any other sentence she receives.
This matter was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Matthew L. Jacobs.
The public is cautioned that an indictment is merely the formal method of issuing charges against an individual. A person is presumed innocent until such time, if ever, as the government establishes his or her guilt beyond a reasonable doubt.
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Business Owner Indicted for Failure to Provide IRS with 1.6 Million Dollars in Payroll TaxesRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Susan Wenszell (age 57) of Milwaukee has been charged in an indictment with failing to pay over payroll taxes withheld from the wages of employees of a business she and her husband operated in Milwaukee.
Specifically, the indictment charges that during the period from April 2012 through December 2015 Ms. Wenszell, who is the president and owner of J. Wenszell Enterprises Inc., failed to pay over the payroll taxes withheld from the wages of the employees of the business. During this period, Ms. Wenszell withheld more than 1.6 million dollars in payroll taxes from employee wages and failed to pay those taxes to the IRS. Each of the offenses with which Ms. Wenszell is charged carries a maximum possible penalty of up to 5 years in prison and a fine of up to $250,000, or both.
This matter was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Matthew L. Jacobs.
The public is cautioned that an indictment is merely the formal method of issuing charges against an individual. A person is presumed innocent until such time, if ever, as the government establishes his or her guilt beyond a reasonable doubt.
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Former Glenbeulah, WI, Man Sentenced to 133 Months in Federal Prison for Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger announced that on July 2, 2018, Richard L. Kraemer (age: 47) formerly of Glenbeulah, Wisconsin, was sentenced to 133 months in federal prison for possession of child pornography, to be followed by 8 years of supervised release.
Kraemer was charged with five counts of distribution of child pornography and one count of possession of child pornography. The charges stemmed from an investigation led by the Federal Bureau of Investigation’s Milwaukee Division. An FBI Task Force Officer was conducting an online investigation on the BitTorrent network for offenders sharing child pornography. On five separate dates, the FBI Task Force Officer was able to download child pornography that Kraemer made available. A search warrant was obtained by the FBI Task Force Officer for Kraemer’s residence to search for child pornography. Forensic examination of the devices seized from Kramer’s residence revealed that he possessed numerous the images of children, including children as young as 6 months old.
According to United States Attorney Krueger, “Protecting our nation’s children is a top priority for the U.S. Department of Justice. This lengthy sentence should serve as a warning to other predators.” Krueger also commended the work of the FBI Task Force and the Sheboygan County Sheriff’s Office to support this prosecution.
The sentence in this case was imposed by the Honorable Pamela Pepper, United States District Judge. Kramer was previously convicted of first degree and second degree sexual assault by the State of Wisconsin.
This case was prosecuted in federal court as part of “Project Safe Childhood,” the Department of Justice’s nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s 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 using the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Penelope L. Coblentz.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Milwaukee Man Arrested for Attempted Arson of Milwaukee Police StationRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on July 2, 2018, Van L. Mayes (a/k/a Vaun L. Mayes) (age 31) of Milwaukee was arrested and charged by a criminal complaint with attempted arson, possession of a firearm by a felon, and possession of a destructive device in relation to a crime of violence, in violation of Title 18, United States Code, Sections 844(i), 922(g), and 924(c)(1)(B)(ii).
The complaint alleges that Mayes and others planned to firebomb the Milwaukee Police Department’s District Seven Police Station during the Sherman Park rioting in August 2016. According to the complaint, Mayes and others pursued the plan by manufacturing Molotov cocktails in glass bottles that contained gasoline with a fabric wick inserted into the opening. The firebombing of the District Station ultimately did not occur.
“Today’s charges are the result of ongoing efforts to hold accountable those who engaged in criminal conduct during the Sherman Park riots,” explained U.S. Attorney Krueger.
“ATF is pursuing multiple investigations related to the 2016 Sherman Park riots,” said U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Assistant Special Agent in Charge Joel Lee of the St. Paul Field Division. “This particular arrest is related to the attempted firebombing of the Milwaukee Police Department’s seventh District station. We’re hoping this arrest will bring us one step closer in holding individuals responsible for the violence and disorder back in 2016. The citizens and business community of Milwaukee deserve the peace of mind.”
ATF led the investigation of this case in cooperation with the Wisconsin Department of Justice Division of Criminal Investigation and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorneys Gregory Haanstad and Christopher Ladwig.
The public is cautioned that a criminal charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Criminal_ComplaintWisconsin Man Indicted in 30 Million Dollar Fraud SchemeRead the Press Release
United States Attorney Matthew D. Krueger announced that on June 26, 2018, a federal grand jury in Milwaukee returned an indictment charging Albert Golant, aka Alex Golant, (age: 37) of Wales, Wisconsin with twelve counts of wire fraud and bank fraud. Golant is charged with seven counts of wire fraud, in violation of Title 18, United States Code, Section 1341 and five counts of bank fraud in violation of Title 18, United States Code, Section 1344. Each of the wire fraud charges contained in the indictment carries a maximum penalty of up to twenty years in prison and a fine of up to $250,000, or both. Each of the bank fraud charges contained in the indictment carries a maximum penalty of thirty years in prison and a fine of up to $1 million, or both.
The indictment alleges that Golant has been involved in the business of purchasing luxury vehicles in the United States using straw buyers and shipping them overseas to individual foreign buyers both directly and through vehicle brokers. Golant, and others, knowingly devised and participated in a scheme to defraud. The indictment alleges that it was part of the scheme that Golant obtained funds from third parties, including vehicle brokers, investors, and lenders, by representing that the funds would be used to purchase specific luxury vehicles. Instead, Golant diverted tens of millions of dollars to his own personal use. Golant used the funds to gamble at casinos, to pay off gambling debts, to provide funds to professional gamblers to gamble on his behalf, to pay off prior loans, and to satisfy obligations to other clients.
It was further part of the scheme that Golant fraudulently sold luxury vehicles, which he knew had previously been sold and exported to China, to dealerships in Wisconsin and Illinois. After the vehicle was fraudulently sold to the dealership, Golant represented that he had a customer who would buy the vehicle back from the dealership using financing. Golant submitted false and fraudulent financing applications on behalf of his customers to obtain the financing for the vehicles.
Through his scheme, Golant fraudulently obtained at least $30 million from at least 40 different victims. This matter was investigated by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Laura S. Kwaterski for prosecution.
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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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Two Lawyers Sentenced in Federal Court for Wire Fraud Scheme Against Johnson ControlsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that Scott Hess, a 54-year old resident of Menominee Falls, Wisconsin, and Craig Hilborn, a 55-year old resident of Birmingham, Michigan, were sentenced by the Honorable J.P. Stadtmueller for their participation in a wire fraud scheme.
Until late 2015, Hess was an in-house attorney at Johnson Controls, Inc., in Milwaukee, Wisconsin. Hilborn ran his own law firm in Michigan. Together, Hess and Hilborn devised and executed a scheme to defraud Johnson Controls: Hess created fraudulent invoices for legal work purportedly completed by Hilborn’s law firm. Hess then approved those invoices on behalf of his employer, causing Johnson Controls to pay Hilborn’s law firm the invoiced amounts. In reality, Hilborn’s law firm did not perform any meaningful legal work for Johnson Controls. Hess and Hilborn carried out the scheme from 2000 through 2015, in the process stealing approximately $4.5 million from Johnson Controls.
In March and April of 2018, Hess and Hilborn both pleaded guilty to two counts of wire fraud, in violation of Title 18 United States Code § 1343. On June 15, 2018, the Honorable J.P. Stadtmueller sentenced Hess to 32 months in prison, three years supervised release and a $90,000 fine. On June 28, 2018, the Honorable J.P. Stadtmueller sentenced Hilborn to 21 months in prison, two year’s supervised release and a $60,000 fine. Both Hess and Hilborn were ordered to pay full restitution to Johnson Controls.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rebecca Taibleson.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Five Defendants Charged with Illegal Opioid Distribution as Part of a National Healthcare Fraud TakedownRead the Press Release
United States Attorney Matthew D. Krueger announced today that a federal grand jury in the Eastern District of Wisconsin indicted Lisa Hofschulz, 58, who is an Advanced Practice Nurse Practitioner, and her ex-husband Robert Hofschulz, 70, for conspiring to distribute oxycodone and methadone outside of a professional medical practice and not for a legitimate medical purpose through their cash-only pain clinic, Clinical Pain Consultants, s.c. (“CPC”) in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C) and 846. In a separate case, the grand jury also charged Kameka Simpson, 43, Eric Jasper, 33, and Brittany Washington, 27, with multiple counts of obtaining controlled substances (oxycodone) by fraud, in violation of Title 21, United States Code, Section 843(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Both of these indictments were part of a larger National Healthcare Fraud and Opioid Takedown coordinated by the Department of Justice and the Department of Health and Human Services.
The indictment against Lisa and Robert Hofschulz charges fourteen counts, alleging that CPC collected over $800,000 in cash from patients in 2015 and over $1,000,000 in cash in 2016 because its prescribers, primarily Lisa Hofschulz, prescribed excessive dosages of controlled substances outside of a professional medical practice and not for a legitimate medical purpose. CPC is located in Wauwatosa, Wisconsin.
As part of the alleged conspiracy, Lisa and Robert Hofschulz hired newly graduated nurse practitioners with minimal pain management experience, provided them inadequate training, provided no written policies, and pressured them to prescribe dosages similar to Lisa Hofschulz to patients. Lisa and Robert Hofschulz also failed to provide the new nurse practitioners a (legally required) collaborative physician for much of the time period covered by the conspiracy. The indictment also alleges Lisa and Robert Hofschulz directed an individual not authorized to issue prescriptions (Registered Nurse) to distribute controlled substance prescriptions to customers when authorized prescribers refused. Additionally, Lisa Hofschulz mailed controlled substance prescriptions or allowed them to be picked up from the front desk of CPC without being seen by Lisa Hofschulz or any other prescribers. The indictment alleges that Lisa and Robert Hofschulz “caused an enormous amount of opioids to be distribute throughout Wisconsin, fueling opioid addictions in numerous individuals, while collecting huge sums of cash for themselves.” Finally, the indictment charges that 13 specific prescriptions were issued outside a professional medical practice and not for a legitimate medical purpose.
The indictment against Kameka Simpson, Eric Jasper, and Brittany Washington, each of Milwaukee, Wisconsin, charges eight counts stemming from this group’s passing of fraudulent oxycodone prescriptions purportedly written by an authorized healthcare provider. Some of the defendants were employed by the healthcare provider, who practiced at a pain clinic in West Allis, Wisconsin.
Each count of distribution of controlled substances against Lisa and Robert Hofschulz carries a maximum penalty of 20 years in prison and a $1,000,000 fine. If Kameka Simpson, Eric Jasper, and Brittany Washington are convicted of aggravated identity theft, these defendants each face a mandatory minimum prison sentence of two years, a fine of up to $250,000, as much as one year of supervised release, and a special assessment of $100. Each prescription fraud count carries a maximum penalty of four years’ imprisonment, a fine of up to $250,000, as much as one year of supervised release, and a special assessment of $100.
Both of these indictments were part of a larger National Healthcare Fraud and Opioid Takedown coordinated by the Department of Justice and the Department of Health and Human Services. This year’s takedown was the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
United States Attorney Krueger stated, “Addiction to opioids has created has a crisis in Wisconsin, with the number of overdose deaths continuing to increase. We must act with urgency to reduce overdose deaths, using all available tools, including prevention and treatment programs as well as law enforcement efforts. For many, the road to addiction begins with prescription drugs. That’s why we are committed to prosecuting individuals who distribute prescription drugs outside of a professional medical practice. We commend the excellent joint investigative efforts that led to these indictments.”
“Prescription painkiller abuse is a root cause of the state’s drug epidemic and can lead to heroin use,” said Wisconsin Attorney General Brad Schimel. “Enforcement, along with prevention and treatment, is crucial to stopping opioid abuse in our state. The indictments announced today demonstrate the value of collaboration between a multi-jurisdictional group of local, state, and federal investigators and prosecutors, and that all partners are united in their desire to end the drug epidemic.”
Paul E. Maxwell, Jr., Assistant Special Agent in Charge of the DEA’s Milwaukee Office stated, “The DEA fully supports the good and necessary work of medical providers in the State of Wisconsin and throughout the nation. However, the DEA takes seriously the unethical and criminal diversion or misuse of controlled prescription pain killers, which has driven the national opioid addiction problem this nation currently faces. The DEA continues to work with the medical community to insure the safe prescription of medication to patients.”
“Health care fraud is a threat to this country, both in terms of the well-being of patients and the integrity of government health care programs,” said Lamont Pugh, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Our agents will continue to work with our law enforcement partners to ensure these criminals are held accountable for their actions.”
The charges contained in the indictments announced today are merely allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Lisa and Robert Hofschulz case was investigated by the Drug Enforcement Administration (“DEA”), the Medicaid Fraud Control and Elder Abuse Unit of the Wisconsin Department of Justice, and Internal Revenue Service—Criminal Investigation. It is being prosecuted by United States Attorney Matthew D. Krueger and Assistant United States Attorneys Zachary Corey and Michael Carter.
The Kameka Simpson, Eric Jasper, and Brittany Washington case was investigated by the DEA, the Department of Health and Human Services, Office of the Inspector General, and the Medicaid Fraud Control and Elder Abuse Unit of the Wisconsin Department of Justice. It is being prosecuted by Assistant United States Attorney Jonathan Koenig.
Information and resources concerning the opioid crisis and the DEA’s “360 Strategy” for addressing the crisis may be found at the DEA’s website, www.dea.gov
Information about “Dose of Reality,” the State of Wisconsin’s effort to prevent prescription painkiller abuse in Wisconsin is available here: https://doseofrealitywi.gov/
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Menominee Man Sentenced for Sexual Contact Offense on Menominee ReservationRead the Press Release
United States Attorney Matthew D. Krueger announced that on June 19, 2018, Mitchell R. Crowe (age: 37), was sentenced by the Honorable Chief Judge William C. Griesbach to 3 years in prison and 15 years supervised release following his guilty plea to sexual contact with an underage female in violation of Title18 United States Code Sections 2244(a) (2) and 1153. The three year prison term was the statutory maximum term. As part of his sentence, Crowe must also comply with sex offender registry requirements. Those requirements mandate Crowe to advise registry officials where he is living, working or attending school.
According to the information and other court documents, between June and August 2016, while on the Menominee Indian Reservation, Crowe had sexual contact with an underage female. Further, Crowe admitted to doing so after the minor consumed alcohol and marijuana thereby rendering her incapable of appraising the nature of the situation. In imposing his sentence, Judge Griesbach stressed the serious nature of the offense, including the efforts Crowe took to gain the trust of minor, only to later exploit that trust by having sexual contact with her.
This case was investigated by the Federal Bureau of Investigation and Menominee Tribal Police Department. The case was prosecuted by Assistant United States Attorney William Roach.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Former Union Treasurer Sentenced to Prison for EmbezzlementRead the Press Release
United States Attorney Matthew D. Krueger announced that Cheryl A. Angell (age: 59) of Kaukauna, Wisconsin, was sentenced today in federal court in Green Bay for embezzlement of union funds. Chief United States District Judge William C. Griesbach sentenced Lewis to a thirteen month term of imprisonment and ordered her to pay $98,711 in restitution to United Steelworkers Local 2. Judge Griesbach also placed Angell on supervised release for three years.
Angell, the former Treasurer for United Steelworkers Local 2, was sentenced following her earlier guilty plea to the charge of embezzling $98,711 in union funds over the course of approximately 4 years. Angell admitted to doing so by writing in excess of 100 checks to herself, using a union credit card for personal expenses, and depositing the proceeds of union checks into her personal account, all without union authorization. Angell spent a considerable portion of the funds obtained at local casinos. In imposing sentence, Chief Judge Griesbach stressed the length of the fraud and Angell’s abuse of trust placed in her by union members. Chief Judge Griesbach also stated Angell’s sentence should deter others from committing similar thefts and serve as a significant punishment for her actions.
In announcing this sentence: United States Attorney Krueger stated: “Anyone who, like Ms. Angell, steals from fellow union members after being entrusted to act in their best interest must know that significant consequences will follow.”
This case was investigated by the U.S. Department of Labor, Office of Labor-Management Standards. The case was prosecuted by Assistant United States Attorney William Roach.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Former Executives at Publicly Traded Transportation Company Charged with $245 Million Accounting and Securities Fraud SchemeRead the Press Release
Two former executives of Roadrunner Transportation Systems Inc., a publicly traded transportation and trucking company formerly headquartered in Cudahy, Wisconsin, were charged in an indictment unsealed today for their alleged participation in a complex accounting and securities fraud scheme that resulted in a loss of more than $245 million in shareholder value.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin, Regional Special Agent in Charge Thomas J. Ullom of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and Special Agent in Charge R. Justin Tolomeo of the FBI’s Milwaukee Field Office made the announcement.
Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin, were charged in an indictment filed in the Eastern District of Wisconsin with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; three counts of securities fraud; and four counts of wire fraud. Naggs, the former controller for Roadrunner’s Truckload operating segment, and Wogsland, the former controller and director of accounting for Roadrunner’s Truckload operating segment, both worked out of Roadrunner’s corporate headquarters in Cudahy. Roadrunner Transportation Systems Inc. is currently headquartered in Downers Grove, Illinois.
“According to the allegations in the indictment, Mark Wogsland and Bret Naggs engaged in a massive securities and accounting fraud scheme that misled shareholders, regulators, and the investing public, and ultimately caused a loss of more than $245 million in shareholder value,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to protecting investors and the integrity of U.S. securities exchanges, and we will vigorously pursue corporate executives who engage in deceptive and fraudulent accounting practices.”
“The stability our financial markets depends upon public companies issuing accurate financial statements,” said U.S. Attorney Matthew D. Krueger. “We commend the FBI and the Department of Transportation Office of Inspector General for its excellent efforts in investigating this case.”
“Working with our law enforcement and prosecutorial partners, the U.S. Department of Transportation Office of Inspector General is committed to preventing and detecting corporate fraud and corruption schemes within transportation-related companies intent on providing false or misleading information to the federal government,” said DOT-OIG Regional Special Agent Ullom. “Today’s indictment helps reinforce the message that executives involved in all modes of transportation must uphold the public’s trust and maintain the highest levels of integrity.”
“Corporate fraud remains a high priority for the FBI,” said Special Agent in Charge Tolomeo. “Perpetrators who mislead investors and manipulate financial data to falsely inflate business performance will face justice for their crimes.”
“This indictment makes it clear that the FBI, its fellow field offices, and federal partners are committed to working together to hold those accountable who would attempt to manipulate the market,” said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “This alleged fraud caused significant harm to Roadrunner and its shareholders for personal profit.”
The indictment alleges that between 2014 and 2017, Naggs, Wogsland and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, regulators and the investing public about Roadrunner’s true financial condition. According to the indictment, beginning in 2014, Naggs, Wogsland and their co-conspirators identified at least $7 million in overstated accounts on the balance sheet of one of Roadrunner’s largest operating companies, Roadrunner Intermodal Services Inc. (RRIS), which included old, uncollectable customer debts with static balances; understated and increasing liabilities for historic debt owed by terminated drivers; and overstated accounts for licenses and other “prepaid assets” that no longer had any actual value. Instead of addressing the misstated accounts by writing them off, the indictment alleges, Naggs, Wogsland and their co-conspirators purposefully left the vast majority of the misstated accounts on Roadrunner’s books in order to fraudulently boost Roadrunner’s financial performance and mislead Roadrunner’s shareholders, independent auditors, regulators and the investing public about Roadrunner’s true financial condition.
According to the indictment, by late 2014, Naggs, Wogsland and their co-conspirators developed a plan to write off a portion of the misstated accounts. However, instead of immediately writing off the full amount, Naggs, Wogsland and their co-conspirators directed RRIS finance employees to adjust the balance sheet by a small amount each month, in order to conceal from Roadrunner’s shareholders, independent auditors, regulators and the investing public the true nature and extent of the misstated accounts. However, after learning that Roadrunner’s performance at other operating companies had deteriorated, the indictment alleges, Naggs, Wogsland and their co-conspirators abandoned the plan and, in some cases, reversed write-offs that had already been booked. The indictment further alleges that beginning in May 2015, Naggs and other Roadrunner employees received monthly financial reports from RRIS, which included profit and loss figures both with and without the planned monthly write-off.
The indictment alleges that as a result of the scheme, nearly all of the misstated accounts remained on RRIS’s balance sheet from 2014 until early 2017, when Roadrunner announced for the first time that it would be restating its previously reported financial results. Three trading days following the announcement, the price of Roadrunner’s shares dropped from $11.74 to $7.54 per share, causing a loss in shareholder value of more than $160 million. In early 2018, Roadrunner issued restated financial results for 2014 through the third quarter of 2016, acknowledging that it had identified material accounting errors resulting from material weaknesses and management override of internal controls. Three trading days after announcing the restated financial results, Roadrunner’s share price further dropped from $7.14 to $4.90, causing an additional loss in shareholder value of more than $85 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Department of Transportation Office of Inspector General’s Chicago Office and the FBI’s Milwaukee and Atlanta Field Offices are investigating the case. Assistant Chief Henry Van Dyck and Trial Attorneys Caitlin Cottingham and David Stier of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Eastern District of Wisconsin. The Securities and Exchange Commission also provided assistance in this matter.
Wisconsin Woman Charged with Attempting to Provide Material Support to ISISRead the Press Release
Waheba Issa Dais, 45, originally of Israel and a U.S. legal permanent resident residing in Cudahy, Wisconsin, has been charged in a criminal complaint with attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew Krueger for the Eastern District of Wisconsin, and Special Agent in Charge Justin Tolomeo of the FBI’s Milwaukee Division made the announcement.
According to the criminal complaint, beginning in at least January, Dais attempted to provide services, personnel, expert advice and assistance to ISIS, by promoting ISIS’s agenda, facilitating recruitment and maintaining a virtual library of instructions on how to make bombs, biological weapons, poisons and suicide vests to assist self-proclaimed ISIS members and supporters in their attack planning. Dais used multiple social media accounts that she hacked and took over from unwitting victims and private social media platforms to provide and facilitate her support. Dais used one of her pro-ISIS accounts to encourage an individual, whom she believed to be an ISIS supporter, to conduct an attack in the name of ISIS. She provided detailed instructions on how to make Ricin and then suggested the individual introduce the Ricin to a government post or water reservoirs. In another post, she suggested potential targets for bombing attacks, including street festivals and celebrations in the summer.
Dais was arrested by the FBI on June 13. Dais appeared before a federal magistrate judge on the charges on June 13.
The defendant faces a statutory maximum sentence of 20 years’ imprisonment and a fine of up to $250,000.00. A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI Milwaukee Division’s Joint Terrorism Task Force. The government’s is represented by Assistant U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, with assistance from Trial Attorney Jolie F. Zimmerman of the National Security Division’s Counterterrorism Section.
Wisconsin Woman Charged with Attempting to Provide Material Support to ISISRead the Press Release
Waheba Issa Dais, 45, originally of Israel and a U.S. legal permanent resident residing in Cudahy, Wisconsin, has been charged in a criminal complaint with attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew Krueger for the Eastern District of Wisconsin, and Special Agent in Charge Justin Tolomeo of the FBI’s Milwaukee Division made the announcement.
According to the criminal complaint, beginning in at least January, Dais attempted to provide services, personnel, expert advice and assistance to ISIS, by promoting ISIS’s agenda, facilitating recruitment and maintaining a virtual library of instructions on how to make bombs, biological weapons, poisons and suicide vests to assist self-proclaimed ISIS members and supporters in their attack planning. Dais used multiple social media accounts that she hacked and took over from unwitting victims and private social media platforms to provide and facilitate her support. Dais used one of her pro-ISIS accounts to encourage an individual, whom she believed to be an ISIS supporter, to conduct an attack in the name of ISIS. She provided detailed instructions on how to make Ricin and then suggested the individual introduce the Ricin to a government post or water reservoirs. In another post, she suggested potential targets for bombing attacks, including street festivals and celebrations in the summer.
Dais was arrested by the FBI on June 13. Dais appeared before a federal magistrate judge on the charges on June 13.
The defendant faces a statutory maximum sentence of 20 years’ imprisonment and a fine of up to $250,000.00. A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI Milwaukee Division’s Joint Terrorism Task Force. The government’s is represented by Assistant U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, with assistance from Trial Attorney Jolie F. Zimmerman of the National Security Division’s Counterterrorism Section.
Wisconsin Man Indicted for Producing Child Pornography Outside of the United StatesRead the Press Release
WASHINGTON – A Wisconsin man was charged in an indictment yesterday with the crimes of producing and possessing child pornography and engaging in illicit sexual conduct in a foreign place, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin.
Jeffrey H. Ernisse, 61, is currently incarcerated for state offenses related to child exploitation at the Red Granite Correctional Institution in Wisconsin. A grand jury in the U.S. District Court for the Eastern District of Wisconsin indicted Ernisse on two counts of producing child pornography, two counts of producing child pornography outside of the United States, one count of engaging in illicit sexual conduct with a minor in the Philippines and one count of possessing child pornography.
According to the indictment, on or about March 10, 2015 and then again, on or about April 7, 2015, Ernisse used a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Between approximately June 17, 2014, and approximately April 11, 2015, Ernisse engaged in illicit sexual conduct with a minor in the Republic of the Philippines. And on or about Dec. 18, 2015, Ernisse possessed child pornography.
The charges contained in the indictment are merely allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is investigating this case with the cooperation of the Sheboygan, Wisconsin, Police Department. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Megan J. Paulson and Penelope L. Coblentz of the Eastern District of Wisconsin are prosecuting 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.
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Fired Menominee Tribal Police Officer Sentenced to 15 years in Prison for Attempted Sexual Exploitation of a Child on Menominee Indian ReservationRead the Press Release
United States Attorney Matthew D. Krueger announced that Basil L. O’Kimosh, Jr. (age: 40) of Keshena man was sentenced on June 11, 2018 to 180 months in prison and 8 years of supervised release after a conviction for Attempted Sexual Exploitation of a Child on the Menominee Indian Reservation. The sentence was the result of a guilty plea in March 2018 before Chief United States District Judge William C. Griesbach.
The investigation revealed that O’Kimosh, who at the time was a patrol officer for the Menominee Tribal Police Department, engaged in sexually explicit chat with a person he believed to be a 15-year old. Unbeknownst to O’Kimosh, he was actually chatting with an undercover detective with the Menominee Tribal Police Department. O’Kimosh requested sexually explicit images from the undercover detective, before sending a sexually explicit image of himself to the detective. O’Kimosh and the detective agreed to meet at a location in Keshena for purposes of engaging in sex acts. Therefore, O’Kimosh was arrested.
In sentencing O’Kimosh, Chief Judge Griesbach noted the serious nature of the offense, which he described as “an attack on someone’s innocence.” The court also noted that the many positives in O’Kimosh’s background actually made the offense worse, stating “there was no reason to engage in this behavior.”
The case was investigated by the Menominee Tribal Police Department, with assistance from the Wisconsin Department of Justice – Division of Criminal Investigation, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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Superseding Indictment Returned Against Marcus HutchinsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on June 5, 2018, a federal grand jury returned a ten-count superseding indictment against Marcus Hutchins, also known as “Malwaretech,” and “[email protected],” related to creating and distributing the Kronos banking Trojan and UPAS Kit malware.
The original six-count indictment was returned against Hutchins on July 11, 2017, following a two-year investigation. Hutchins, a citizen and resident of the United Kingdom, was arrested in the United States on August 2, 2017, in Las Vegas, Nevada. Hutchins pleaded not guilty to the original indictment. A trial date has not yet been set.
In the superseding indictment, Hutchins was charged with the following crimes: one count of conspiring to commit computer fraud and abuse and intercept electronic communications; one count of conspiring to commit wire fraud; six counts related to distributing, selling, promoting, and advertising a device used to intercept electronic communications; two counts of attempting to access a computer without authorization; and one count of making a false statement to the FBI.
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 Michael J. Chmelar and Benjamin W. Proctor.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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For additional Information Contact:
Public Information Officer Dean Puschnig, 414.297.1700
On 500th Day of Trump Administration, Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
June 4, 2018 – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and United States Attorney for the Eastern District of Wisconsin Matthew D. Krueger announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump’s strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’ When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
In the Eastern District of Wisconsin, two of these AUSAs will focus on violent crime and one AUSA will focus on affirmative civil enforcement, including cases involving illegal opioid distribution.
“We are grateful for additional prosecutors to confront the opioid epidemic and violent crime in our community,” said United States Attorney Krueger. “Last month, in a single weekend in Milwaukee County, at least six people died of drug overdoses. For many, addiction starts with prescription opioids. The new civil enforcement AUSA will reinforce our efforts to deter prescribers and pharmacies that distribute prescription opioids illegally. Violent crime rates are also far too high. The two new criminal AUSAs will bolster our campaign to prosecute aggressively the firearms offenses that disrupt neighborhood safety.”
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Kiel, Wisconsin Man Arrested for Food TamperingRead the Press Release
United States Attorney Matthew D. Krueger announced today that Jonathan Tilman Lane, from Kiel, Wisconsin, was arrested and appeared in federal court in Milwaukee to face charges of tampering with a consumer product.
The criminal complaint alleges that on two separate occasions during March 25-28, 2018, Lane, an employee at Johnsonville Sausage, LLC, placed foreign objects into sausage links. Video surveillance, determined that on March 25, 2018, Lane placed a cigarette paper in a sausage link and on March 28, 2018, Lane placed a wire connector in a sausage link while the items were on the processing line. Both times, the items were removed before the sausage links were packaged. Due to the public risk of Lane’s behavior, Johnsonville closed down the operation and discarded all products that they believed could have been affected.
Lane is charged with two counts of tampering with a consumer product and acting with reckless disregard for the risk that another person would be placed in danger of death or bodily harm and manifesting an extreme disregard to such a risk. As to each count, the Lane face a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to a representative of Johnsonville, none of the tampered products left their facilities. United States Attorney Krueger stated, “We commend Johnsonville Sausage, LLC for its security measures and quick action to prevent any harm to consumers.”
The case is being investigated by the United States Department of Agriculture, Office of Inspector General (USDA/OIG). Assistant United States Attorney Karine Moreno-Taxman is assigned to the prosecution of this case.
This case was charged by a criminal complaint. The public is reminded that the complaint contains only allegations of criminal conduct, and the defendant is presumed innocent until proven guilty in a court of law.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Illegal Alien Sentenced to 41 Months in Federal Prison for Possessing AR-15 Style Rifle and a Handgun in Connection with Drug TraffickingRead the Press Release
United States Attorney Matthew D. Krueger announced that on June 1, 2018, United States District Court Judge J.P. Stadtmueller sentenced Edy Matute to 41 months in prison for being an illegal alien in possession of firearms in violation of 18 U.S.C. §§ 922(g)(5)(A) & 924(a)(2). Matute also received a sentencing enhancement for possessing the firearms in connection with drug trafficking.
As part of an investigation into a large-scale drug and firearm trafficking organization originating in the Southern District of Illinois, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant on Matute’s Milwaukee residence on December 5, 2017. The agents recovered a chrome Taurus PT945 handgun and a Bushmaster AR-15 style rifle. They also recovered a grocery bag that contained two “kilo wrappers” that tested positive for cocaine residue. At the time of the search warrant, Matute, who is a citizen of Honduras and unlawfully in the United States, had been convicted of driving under the influence three times and was in immigration removal proceedings.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Zachary J. Corey. The related cases in the Southern District of Illinois are being prosecuted by Assistant United States Attorney Kit Morrissey.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Keshena Men Indicted for Firearm Offenses on Menominee Indian ReservationRead the Press Release
United States Attorney Matthew D. Krueger announced that on May 15, 2018, a federal grand jury returned a two-count indictment against two men allegedly involved in firearms offenses on the Menominee Indian Reservation. The indictment charges Jeremy Fish (age: 33) and Bobby Joe Sanapaw (age: 32), both from Keshena. Count One charges Fish with Felon in Possession of Firearms in violation of Title 18, United States Code 922(g). Count Two charges Fish and Sanapaw with Possession of a Short-Barreled Shotgun in violation of Title 26, United States Code, Section 5681. As to each count, the defendants face a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about July 12, 2017, Fish and Sanapaw possessed firearms, one of which was a short-barreled shotgun. The incident occurred at a residence in Keshena.
This case is being prosecuted as part of the Project Safe Neighborhood 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 Menominee Tribal Police Department 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 their guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig at 414 297-1700
Green Bay Man Charged with Child Pornography OffensesRead the Press Release
United States Attorney Mathew D. Krueger announced that on May 22, 2018, a federal grand jury returned an indictment against Luca DaPra (age: 34) of Green Bay, Wisconsin, charging him with attempted production of child pornography in violation of Title 18 United States Code Section 2251. If convicted of the charge, DaPra faces a mandatory minimum term of 15 years and up to 30 years in prison, a $250,000 fine, and five years to life of supervised release.
DaPra was also charged with distribution of child pornography in violation of Title 18 United States Code Section 2252A(a)(2)(A) and possession of child pornography in violation of Title 18 United States Code Section 2252A(a)(5)(b). The distribution of child pornography charge subjects DaPra to a five year mandatory minimum and up to 20 year maximum term of imprisonment and the possession of child pornography charge subjects him to a 20 year maximum term of imprisonment.
On May 24, 2018, DaPra appeared before the Honorable James Sickel, Magistrate Court Judge, and was ordered to be held in jail pending trial in the matter. A trial date is set for July 16, 2018, before the Honorable Chief Judge William C. Griesbach and a final pretrial conference is set for July 3, 2018 at 2:30 p.m.
This case was investigated by the Green Bay Police Department, Brown County Sheriffs Department and Neenah Police Department. The case is being prosecuted by Assistant United States Attorney William Roach.
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 guilt beyond a reasonable doubt.
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Manitowoc Man Indicted for Orchestrating $3,000,000 Ponzi SchemeRead the Press Release
United States Attorney Matthew D. Krueger announced today that a federal grand jury in the Eastern District of Wisconsin indicted James A. Nickels (age 67) of Manitowoc, Wisconsin, on eighteen counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of money laundering, in violation of 18 U.S.C. § 1957.
According to the indictment, from approximately September 2006 until August 2017, Nickels carried out a scheme to defraud by making materially false representations, omissions, and promises to induce people to invest in a business called The Fiscal Concierge. As part of the scheme, Nickels failed to inform potential investors that he was using money from new investors to pay interest and principal promised to previous investors, and to pay his personal expenses. Nickels obtained from investor victims more than $5 million in scheme proceeds, and the investors’ net loss was $3,193,616.
United States Attorney Krueger commented, “Investment schemes can destroy the dreams of victims whose hard-earned savings are stolen. We commend the excellent work of the IRS and the State of Wisconsin in joining forces to investigate this case.”
“Illegal activity involving the investment industry has brought financial ruin to many Americans. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime,” said IRS Criminal Investigation, St. Paul Field Office Acting Special Agent in Charge David Talcott.
Each of the eighteen wire fraud charges carries a maximum possible penalty of up to twenty years in prison and a fine of up to $250,000. The money laundering charge carries a maximum possible penalty of up to ten years in prison and a fine of up to $250,000.
IRS Criminal Investigation and the Wisconsin Department of Financial Institutions investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Stephen A. Ingraham and Zachary J. Corey.
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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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Two Men Indicted in Federal Court with Armed Robbery of Wauwatosa PharmacyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that two people were indicted for the armed robbery of the Swan Serv-U Pharmacy in Wauwatosa, Wisconsin. Elix Powell (age: 19 ) of Indianapolis, Indiana and Antonio Jamerson (age: 19) Chicago, Illinois were charged with one count of interference with commerce by robbery pursuant to the Hobbs Act, and one count of brandishing a firearm in furtherance of a crime of violence.
The indictment alleges that on December 28, 2016, the defendants, armed with a firearm, robbed the Swan Serv-U Pharmacy, located at 9130 W. North Avenue, Wauwatosa, Wisconsin. If convicted, each defendant faces up to 20 years in prison on the armed robbery count and a minimum mandatory sentence of 7 years and up to life in prison on the charge of use of a firearm during a robbery.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Wauwatosa Police Department. The case is being prosecuted by Assistant United States Attorney Laura S. Kwaterski.
This case is being investigated and prosecuted under 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. The 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 Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent criminals who commit armed robbery of businesses involved in interstate commerce. The U.S. Attorney’s Office and the District Attorney’s Office collaborate together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.
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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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Two Men Indicted for Armed Carjacking in MilwaukeeRead the Press Release
United States Attorney Matthew D. Krueger announced today that Jack Clayborne (Age: 30) and Sylvance Brown (Age: 43) have been indicted for an attempted armed carjacking in Milwaukee. Both defendants were charged with one count of motor vehicle robbery causing serious bodily injury, one count of discharging a firearm in furtherance of a crime of violence, and one count of possession of a firearm and ammunition by a felon. Those charges relate to a July 7, 2016, attempted carjacking on Hampton Avenue in Milwaukee, in which the victim was shot by the assailants. Clayborne and Brown were previously charged with the same crimes by criminal complaint on March 22, 2018. A third defendant, Eric Booker, was also convicted of participating in the attempted armed carjacking after a jury trial in January of 2017.
Clayborne and Brown each face up to 25 years in prison for the carjacking, a minimum mandatory consecutive sentence of 10 years to life in prison on the brandishing count, and up to 10 years in prison on the firearm possession count. Booker has already been sentenced to 13 years in prison for his role in the July 2016 crime.
In response to the indictment, United States Attorney Krueger stated, “If convicted, the defendants will face at least 10 years—and likely more—in federal prison. The United States Attorney’s Office, in partnership with law enforcement agencies, is committed to prosecuting gun violence aggressively.”
This case is being investigated and prosecuted under the Project Safe Neighborhoods (PSN) initiative. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The PSN 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. This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Rebecca Taibleson.
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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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Registered Sex Offender Sentenced to 30 Years in Prison for Sex Offenses Against Wisconsin MinorRead the Press Release
WASHINGTON - James A. Huskisson, aka Jason Desantes, 45, of Ozone Park, New York, was sentenced yesterday to 30 years in federal prison by Chief District Judge William C. Griesbach, announced United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin.
Huskisson, a registered sexual offender in the state of New York, initiated an online relationship with a Shawano, Wisconsin, 15 year-old using a popular online messaging system to correspond with the minor. Shortly after establishing contact, he began sending digital images of his genitalia, as well as demanding sexually explicit photographs from the child. Within two weeks of establishing contact, Huskisson travelled from his home in New York City to Shawano and engaged in illicit sexual activity with the minor victim.
Huskisson was convicted of first degree rape in 1997 and again in 1999 in New York, for which he was sentenced to seven years in prison, but was released after serving approximately five years. He was also required to register as a sexual offender for the remainder of his life.
In handing down the sentence, Chief Judge Griesbach noted the defendant’s “horrendous” record of sexual assaults. He further stated his belief that a 30 year sentence was both “just” and lengthy enough to protect the community, noting the uncertainty of Mr. Huskisson ever walking out of prison given his current age.
This case was investigated by the F.B.I.’s offices in Green Bay and New York City, the Shawano County Sheriff’s Office, the Shawano Police Department, the Brown County Internet Crimes Against Children (ICAC) Task Force, the New York Police Department, and the U.S. Marshal’s Service. 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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Florida Residents Charged with Using Stolen IDs to Make ATM Withdrawals throughout Southeastern WisconsinRead the Press Release
United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced today that a federal grand jury returned an eighteen-count indictment charging three Florida residents each with three counts of Wire Fraud and three counts of Aggravated Identity Theft in violation of Title 18, United States Code Sections 1028(A)(a)(1) and 1343. The defendants are Adam Yves Paul (30), of Gainesville, Florida; Frantz Aubert Nelson, (28) of Miramar, Florida; and Yann Asmael Poye (24) of Pembroke Pines, Florida.
According to the charges, the defendants obtained stolen identities and banking information of Wisconsin residents and then traveled throughout Southeastern Wisconsin to make unauthorized withdrawals from automated teller machines (ATMs). The total amount of loss caused by the scheme is not known. However, Paul used stolen identities to withdraw at least $73,290.23, Nelson used stolen identities to withdraw at least $35,564.76, and Poye used stolen identities to withdraw at least $23,439.37.
United States Attorney Krueger commented, “Identity theft is far too common in our digital age. Criminals need to know that federal law mandates at least two years in prison for aggravated identity theft. The United States Government is committed to investigating and prosecuting this crime aggressively.”
The maximum penalties for each count of Wire Fraud is 20 years imprisonment and a $250,000 fine. The Aggravated Identity Theft charges carry a mandatory minimum sentence of two years of imprisonment and up to a $250,000 fine.
This matter is being investigated by the United States Secret Service’s Milwaukee Financial Crimes Task Force. It is being prosecuted by Assistant United States Attorney Zachary Corey. 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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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Keshena Man Indicted for Involuntary Manslaughter on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on May 1, 2018, a federal grand jury returned a one-count indictment against a man involved in a fatal motor vehicle accident in the Legend Lake area of the Menominee Indian Reservation. The indictment charges Saswaen Waukechon (age: 38) of Keshena, an enrolled member of the Menominee Indian Tribe of Wisconsin, with Involuntary Manslaughter, in violation of Title 18, United States Code, Section 1112. If convicted, Waukechon faces up to 8 years in prison, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about January 13, 2018, while driving under the influence of an intoxicant, Waukechon was involved in a single-vehicle accident that resulted in the death of a passenger.
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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Cudahy Man Indicted on Child Pornography and Child Enticement ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on May 1, 2018, a federal grand jury returned an indictment against Adam J. Westphal (age: 41) of Cudahy, Wisconsin. Westphal faces charges of attempted production of child pornography, distribution of child pornography, and the attempted enticement of a minor to engage in sexual activity, contrary to Title 18, United States Code, Sections 2251(a), 2252A, and 2422(b). He faces a mandatory minimum sentence of 15 years and up to a lifetime of incarceration in federal prison.
According to court filings, Westphal joined an online chat room named “taboo” under the user name “daddyinyouagain.” Soon thereafter, he began sending sexually explicit videos and photographs of pre-pubescent children to a person whom he believed to be a 34 year-old mother of a 14 year-old daughter, but was in actuality an undercover investigator with the state’s Internet Crimes Against Children (ICAC) Task Force. Eventually, Westphal made arrangements to travel to a residence in Neenah, Wisconsin, for the purpose of engaging in sexual activity with the 14 year-old girl and with the intent of making a pornographic video of the encounter which he could later share on the internet.
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.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force and the Winnebago 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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For further information contact:
Public Information Officer Dean Puschnig, (414) 297-1700
Three Men Indicted for Armed RobberiesRead the Press Release
United States Attorney Matthew D. Krueger announced today that two Watertown men and a Reeseville man were indicted today for a home invasion armed robbery on S. 15th Place in Milwaukee, on February 27, 2018. Justin M. Gillis, age 30, Amedee Mathew O’Gorman, age 28, and Andrew S. Pein, age 31, each have been charged with one count of Hobbs Act robbery and one count of brandishing a firearm in furtherance of a crime of violence. As discussed in the indictment, the purpose of the robbery was to obtain drugs and drug proceeds. Justin Gillis is also charged with committing a robbery of a Kwik Trip in Germantown on March 3, 2018, and attempting to rob the Village Mart in Jackson and the Petro Mart in Hartford on March 5, 2018.
If convicted, each man faces up to 20 years in prison on the robbery counts and a minimum mandatory sentence of 7 years and up to life in prison on the charge of brandishing a firearm during a crime of violence.
This case is being investigated and prosecuted under 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. The 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.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, the Watertown Police Department, the Germantown Police Department, the Jackson Police Department, the Hartford Police Department, the Oconomowoc Police Department, the Jefferson MDEG Unit, the Milwaukee County District Attorney Investigator’s Office, the Waukesha County Sheriff’s Department, the Washington County District Attorney’s Office, and the Wisconsin State Probation Department – Jefferson County. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath. In addition, the Western District of Wisconsin U.S. Attorney’s Office provided assistance on the case.
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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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Milwaukee Man Sentenced to 107 Years in Prison for Five Armed RobberiesRead the Press Release
United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge J.P. Stadtmueller sentenced Otis Hunter to 107 years in prison after a jury found Mr. Hunter guilty of conspiracy to commit robberies, three business robberies, two carjackings, and five counts of brandishing a firearm during a crime of violence. Judge Stadtmueller sentenced Mr. Hunter’s co-defendant, Deshawn Evans, to 32 years in prison after a jury found Mr. Evans guilty of conspiracy, a business robbery, a carjacking, and two counts of brandishing a firearm during a crime of violence. Each defendant was sentenced to the mandatory minimum sentence imposed by Congress for the use of firearms during crimes of violence.
The evidence presented at trial showed that between November 17, 2016, and December 4, 2016, Mr. Hunter and Mr. Evans were part of a robbery crew that committed three business robberies and two carjackings, all at gunpoint. Most of the crimes occurred on the south side of Milwaukee. The evidence established that the defendants brandished handguns, robbed employees and customers, and, on two occasions, pistol-whipped their victims.
U.S. Attorney Krueger stated, “The lengthy sentences imposed in this case are sobering. Mr. Hunter and Mr. Evans embarked on a cruel robbery spree and terrorized numerous innocent victims. As a result, they will spend decades in federal prison. Men and women who are inclined to use guns to commit robberies and carjackings need to know they face stiff mandatory minimum sentences. Together with federal, state, and local partners, we are committed to prosecuting gun violence and working to make our neighborhoods safer.”
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and Rebecca L. Taibleson.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Milwaukee Man Indicted for Sex Trafficking OffensesRead the Press Release
United States Attorney Matthew D. Krueger has announced that Dameion D. Wyatt (age 40) of Milwaukee, Wisconsin, appeared in federal court on Friday April 27th for an arraignment on multiple offenses related to sex trafficking.
U.S. Attorney Krueger explained that last week, a grand jury returned a ten-count indictment against Wyatt. Counts One, Two, Six, Seven, and Nine allege that at times from September 2011 to July 2014, Wyatt used force, fraud, and coercion to cause five different adult victims to engage in commercial sex acts, and attempted to do so, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(1) and 1594(a). Counts Three, Eight and Ten relatedly allege that Wyatt knowingly transported these women across state lines with the intent that they engage in prostitution, in violation of Title 18, United States Code, Section 2421(a).
Counts Four and Five relate to a minor victim. Count Four alleges that Wyatt trafficked the minor, who was 14 years old at the time, for commercial sex in July 2012 in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2. Count Five alleges that during the same time period, Wyatt transported the minor across state lines with the intent that the minor engage in prostitution and unlawful sexual activity in violation of Title 18, United States Code, Section 2423(a).
Counts Three, Eight, and Ten each carry a maximum penalty of 10 years in prison, while the other counts each carry a maximum penalty of life in prison. Both of the counts involving the minor victim also carry 10-year minimum mandatory prison sentences, and the five counts of sex trafficking by force, fraud or coercion each carry 15-year mandatory minimum prison sentences. All of the charges in Wyatt’s indictment carry additional possible penalties of up to a life term of supervised release following any term of imprisonment, and up to $250,000 fine.
U.S. Attorney Krueger commented, “Sex trafficking inflicts horrific trauma upon its victims, and these charges are especially heart-breaking because they allege the exploitation of a child. This Office is committed to prosecuting sex trafficking. We commend the victims in this case for speaking out and helping to ensure that additional women do not become victims of trafficking. We also commend the Wisconsin Department of Justice’s excellent investigative work.”
“For more than a year, DOJ led a complex sex trafficking investigation of the Wyatts that spanned multiple states,” said Wisconsin Attorney General Brad Schimel. “The indictment announced today, which is the result of great investigative work, finally brings this case closer to a conclusion and is the first steps in delivering justice to the victims.”
This case was investigated by the Wisconsin Department of Justice’s Division of Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Erica J. Lounsberry.
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.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Husband and Wife Sentenced to Prison for Arson of Apartment BuildingRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that two people were sentenced to prison for their involvement in the arson of an 8-unit apartment building in Milwaukee in December 2014. The fire resulted in injuries to multiple people, including tenants and three firefighters with the Milwaukee Fire Department. On April 12, 2018, United States District Court Judge Pamela Pepper sentenced Levita Brewer to 120 months (10 years) in prison to be followed by five years of supervised release. On October 11, 2017, United States District Court Judge J.P. Stadtmueller sentenced Stepfonz Campbell to 92 months (7 years, 8 months) in prison to be followed by five years of supervised release.
The evidence reflected that in early December 2014, Brewer and Campbell, who are married, traveled from Tennessee to Milwaukee, where they had lived just a couple months earlier. Around 10:00 p.m. on December 2, 2014, Brewer poured gasoline in the common hallway of an occupied apartment building on West Eggert Place. Their motive in setting the fire was to retaliate against the landlord, who previously had evicted them.
As the fire progressed, multiple tenants were forced to break through windows and jump to the ground to escape the fire. Three firefighters who entered the building in the midst of the fire found themselves trapped in extreme heat on the second floor. They jumped from a second-story window to the ground and suffered significant injuries. At the sentencing hearings, the federal prosecutor discussed the significant physical and emotional injuries tenants and firefighters endured as a result of the arson.
According to United States Attorney Krueger: “The defendants committed a most heinous act of violence, setting fire to the homes of innocent people. We commend the bravery of the firefighters and tenants who survived this near-fatal arson. The United States Attorney’s Office is committed to combatting violent crime, including arsons, and will continue to seek substantial prison sentences for those who harm members of our community. This successful prosecution resulted from excellent collaboration between federal, state, and local law enforcement, the Milwaukee Fire Department, as well as officers from the Jackson, Tennessee, Police Department.”
“These arsons could have turned tragic very quickly,” said ATF Special Agent in Charge Kurt Thielhorn of the St. Paul Field Division. “Three firefighters suffered tremendously from their injuries incurred while responding to the blaze; we are thankful they are still with us. Let this case show that thoughtless acts like these will be brought to justice. We’re proud to work alongside the Milwaukee Police Department, Milwaukee Fire Department, and Wisconsin Department of Justice during this investigation. It is due to their diligence in the pursuit of justice that the truth was uncovered of who was responsible for these reckless acts.”
By virtue of its statutory authority under Title XI of the Organized Crime Control Act of 1970, ATF initiates investigations and assists in state and local bomb and arson investigations. Over nearly 40 years, ATF has developed scientifically proven investigative capabilities, expertise and resources and has proved that the cooperative effort between trained State and local officers and ATF results in more effective investigations.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice Division of Criminal Investigation, the Milwaukee Fire Department, the Milwaukee Police Department, and the Jackson, Tennessee, Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and William J. Lipscomb.
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For additional information contact:
Public Information Officer Dean Puschnig, (414) 297‑1700
Former Chief Operating Officer Agrees to Plead Guilty to Embezzlement SchemeRead the Press Release
United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced today that Jennifer Goss, age 36 of Menomonee Falls, WI, has agreed to plead guilty to an information charging her with wire fraud for embezzling over $200,000 from a company located in Germantown, Wisconsin.
According to the charges, the scheme involved Goss using her position as Chief Operating Officer and Bookkeeper to embezzle more than $200,000 in a variety of ways. For example, she wrote and signed unauthorized checks from the company’s bank account payable to herself and her husband, who was employed at the company, and deposited them into a shared personal bank account. She later changed the entries in the company’s accounting software to conceal these unauthorized checks. She also used the company’s bank account to make unauthorized payments to her family’s credit card. In addition, she made unauthorized transfers from the company’s bank account to her personal PayPal account, which she used for personal purchases.
Goss agreed to plead guilty to one count of wire fraud in violation of Title18 United States Code § 1343. The maximum penalties for wire fraud are 20 years imprisonment and a $250,000 fine.
The Federal Bureau of Investigation investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Matthew Jacobs and Zachary Corey.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Three More Defendants Charged in Fraud Scheme Involving Small Business ContractsRead the Press Release
United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced today that three defendants agreed to plead guilty to an Information charging them with federal crimes related to a long-term fraud scheme led by Brian L. Ganos involving government-funded contracts intended to benefit small businesses. The three defendants are James E. Hubbell (age: 50) of Sussex, WI, Jorge Lopez (age: 57) of Worthington, Minnesota, and Telemachos Agoudemos (age: 43) of Big Bend, WI.
According to the charges, the scheme involved Ganos, Hubbell, and others operating construction companies with straw owners who qualified as a disadvantaged individual or as a service-disabled veteran, but who did not actually control the companies. The scheme participants fraudulently obtained small business program certifications to win millions of dollars in government-funded contracts to which they were not entitled. Specifically, the following is alleged:
- Nuvo Construction Company, Inc. (Nuvo”) was misrepresented to be majority-owned and controlled by Lopez to obtain certifications as a Small Disadvantaged Business from the U.S. Small Business Administration and as a Disadvantaged Business Enterprise from Milwaukee County. In reality, Lopez worked full-time for a different entity in Minnesota and did not actually control Nuvo.
- C3T, Inc. was misrepresented to be majority owned and controlled by Agoudemos to obtain verification as a Service-Disabled Veteran-Owned Small Business. In reality, for long stretches, Agoudemos had virtually no involvement in C3T.
Hubbell and Lopez agreed to plead guilty to conspiring to defraud the United States by virtue of the scheme in violation of 18 U.S.C. § 371. Agoudemos agreed to plead guilty to making false statements to federal agents in order to conceal that C3T, Inc. did not qualify as a Service-Disabled Veteran-Owned Small Business in violation of 18 U.S.C. § 1001. The maximum penalties for these offenses is five years in prison and a $250,000 fine.
Earlier this month, on April 3, 2018, charges were filed against four defendants in two cases that are related to today’s charges. First, in Case No. 18-CR-62, an indictment was filed charging Brian L. Ganos (age: 57) of Muskego and Mark F. Spindler (age: 56) of Menomonee Falls, and the business Sonag Company, Inc. with crimes related to the fraud scheme. The indictment also alleged that Ganos engaged in money laundering with proceeds from the scheme. The indictment included a forfeiture notice indicating that the United States seeks to forfeit a condominium located in Winter Park, Colorado; the office building used by the companies at 5500-5510 West Florist Avenue, Milwaukee, Wisconsin; a 2014 Chevrolet Corvette Stingray Convertible; and more than $2.2 million seized from two bank accounts. Each of those assets is subject to civil forfeiture actions filed by the United States.
Second, in Case No. 18-CR-64, Nicholas Rivecca agreed to plead guilty to an Information charging him with conspiring with Ganos and others to use Nuvo’s DBE status to win government-funded concrete orders. Rivecca and Ganos were the co-owners of Sonag Ready Mix, LLC, which is alleged to have filled the concrete orders in Nuvo’s name.
The following agencies are participating in the investigation that led to these charges: the Federal Bureau of Investigation; U.S. General Services Administration, Office of Inspector General; Department of Veterans Affairs, Office of Inspector General; Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; U.S. Department of Transportation, Office of Inspector General; U.S. Small Business Administration, Office of Inspector General, Investigations Division; Defense Contract Audit Agency; and U.S. Army Criminal Investigations Command Major Procurement Fraud Unit.
The cases are being prosecuted by United States Attorney Matthew D. Krueger and Assistant United States Attorney Zachary J. Corey. The related civil forfeiture cases are being prosecuted by Assistant United States Attorney Scott J. Campbell.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Green Bay Man Receives 20 Year Sentence for Methamphetamine DistributionRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on April 13, 2018, Ryan L. Pieper (age: 33) of Green Bay, Wisconsin, appeared in federal court in Green Bay and was sentenced to 240 months in federal prison for his role in a methamphetamine distribution ring in Northeast Wisconsin.
In the spring of 2017, Pieper was involved in a conspiracy that resulted in pounds of methamphetamine, acquired from a source in Phoenix, Arizona, being distributed in Brown County and elsewhere in Northeast Wisconsin.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach noted the serious nature of Pieper’s crime and the negative effect that methamphetamine has had on the community. The judge told Pieper that his crime called for a strong sentence, especially in light of his extensive prior record of criminal convictions. Following his release from prison, Pieper will serve 10 years on federal supervised release.
The United States Drug Enforcement Administration and the Brown County Drug Task Force investigated the case. Assistant United States Attorney Daniel R. Humble prosecuted the case.
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Antigo Man Indicted on Firearm and Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on April 10, 2018, a federal grand jury returned a three-count indictment against Shane A. Tillman (age: 33) of Antigo, Wisconsin.
The indictment alleges that Tillman conspired with others to distribute methamphetamine and did so while in the possession of a firearm, contrary to Title 21, United States Code, Sections 846 and 841(a) and Title 18, United States Code, Section 924(c). It further alleges that Tillman’s status as a convicted felon prohibited him from ever possessing a firearm pursuant to Title 18, United States Code, Section 922(g)(1). Tillman faces up to a life sentence if convicted of the charges alleged.
Tillman was arraigned before a federal Magistrate Judge on April 12, 2018, and will remain in federal custody pending trial.
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.
This case was investigated by the Langlade County Sheriff’s Office and the Antigo Police Department with assistance from the Brown County Drug Task Force. The case is being 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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Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
MADISON/MILWAUKEE, WIS. — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
Wisconsin’s two U.S. Attorneys, Matthew D. Krueger (Eastern District) and Scott C. Blader (Western District) said jointly, “No one should be sexually harassed when buying or renting a home. Our offices are committed to fighting sexual harassment in housing, and we encourage anyone who believes they have been the victim of such conduct to contact the U.S. Justice Department or the Department of Housing and Urban Development.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Pubic Service Announcement
Audio filePublic Service Announcement Transcript
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Hartford Man Indicted for Sex Trafficking OffensesRead the Press Release
United States Attorney Matthew D. Krueger has announced that Christopher L. Childs (age 45) of Hartford, Wisconsin, appeared in federal court today for an arraignment on multiple offenses related to sex trafficking.
U.S. Attorney Krueger explained that earlier this week, a grand jury returned a three-count indictment against Childs. Count One alleges that beginning before 2009 and continuing through his arrest on March 29, 2018, Childs conspired with others to use force, fraud, and coercion to cause victims to engage in commercial sex acts, in violation of Title 18, United States Code, Section 1594. Count Two and Count Three, in turn, allege that Childs used force, fraud, and coercion to cause specific victims to engage in commercial sex acts, in violation of Title 18, United States Code, Sections 1591(a)(1) & 1591(b)(1).
If convicted of any of the counts, Childs faces up to life in prison. If convicted of Count Two or Count Three, Childs would face a mandatory minimum sentence of 15 years in federal prison and up to a life term of supervised release following any term of imprisonment. Childs also faces a fine of up to $250,000 per count.
U.S. Attorney Krueger commented, “The United States Attorney’s Office is dedicated to working with our federal, state, and local partners to prosecute these offenses vigorously and seek justice for the victims of human trafficking.” United States Krueger specifically commended the victims in this case for speaking out and helping to ensure that additional women do not become victims of violent sex trafficking by this defendant.
This case was investigated by the Federal Bureau of Investigation, the United States Department of Labor’s Office of Inspector General, the Internal Revenue Service, the Dodge County Sheriff’s Office, the Hartford Police Department, the Racine Police Department, the Department of Homeland Security, the Milwaukee Police Department, and the Wisconsin Department of Justice’s Division of Criminal Investigation.
The case has been assigned to Assistant United States Attorneys Erica J. Lounsberry and Richard G. Frohling for prosecution.
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.
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Two Milwaukee Residents Indicted for Armed CarjackingsRead the Press Release
United States Attorney Matthew D. Krueger announced today that Brittney Neal (Age: 24) and Cedric L. Glosson (Age: 23) had been indicted for armed carjackings in Milwaukee. Both defendants were charged with one count of motor vehicle robbery and one count of discharging a firearm in furtherance of a crime of violence related to a September 27, 2017, carjacking on N. 29th Street. Ms. Neal also is charged with an October 22, 2017, carjacking on W. Vienna Avenue in which a firearm was brandished.
With respect to September incident, each defendant faces up to 15 years in prison for the carjacking and a minimum mandatory consecutive sentence of 10 years to life in prison on the firearm count. With respect to the October incident, Neal faces up to 15 years in prison on the carjacking count and a minimum mandatory seven years to life in prison for brandishing the firearm. If Neal were convicted of both discharging a firearm during the September carjacking and brandishing a firearm during the October carjacking, she would face a mandatory minimum sentence of 35 years in prison.
Glosson remains a fugitive. If you have any information regarding his whereabouts, please contact the United States Marshals Service Tip Line at 414-297-3707.
In response to the indictment, United States Attorney Krueger stated, “Carjackings must stop. The United States Attorney’s Office, in collaboration with the federal and local law enforcement agencies, is committed to aggressively prosecuting violent crimes within our community.”
This case is being investigated and prosecuted under the Project Safe Neighborhoods (PSN) initiative. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The PSN 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. This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. 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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Multiple Defendants Charged in Fraud and Money Laundering Scheme Involving over $200 Million in Small Business ContractsRead the Press Release
United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced that on April 3, 2018, a federal grand jury returned a twenty-two count Indictment charging three defendants with a 12-year fraud and money laundering scheme involving over $200 million in government-funded contracts intended to benefit small businesses. The Indictment named individuals Brian L. Ganos (age: 57) of Muskego and Mark F. Spindler (age: 56) of Menomonee Falls, and the business Sonag Company, Inc. as defendants. In a related case, Nicholas Rivecca, Sr. (age: 68) of Hartland, agreed to plead guilty to an Information charging him with conspiring to defraud the United States.
The indicted defendants were charged with a conspiracy to commit mail fraud and wire fraud. According to the Indictment, the conspiracy involved operating construction companies with straw owners who qualified as a disadvantaged individual or as a service-disabled veteran, but who did not actually control the companies. The conspirators then fraudulently obtained small business program certifications to win government-funded contracts to which they were not entitled. The Indictment alleges that “the conspirators enriched themselves, undermined the small business programs, and deprived honest small businesses of opportunities for work.”
Specifically, the Indictment and Information allege the following:
- Nuvo Construction Company, Inc. was misrepresented to be majority-owned and controlled by J.L. in order to obtain certifications as a Small Disadvantaged Business from the U.S. Small Business Administration (SBA) and as a Disadvantaged Business Enterprise (DBE) from Milwaukee County. In reality, J.L. worked full-time for a different entity in Minnesota and did not actually control Nuvo.
- C3T, Inc. was misrepresented to be majority owned and controlled by T.A. to obtain verification as a Service-Disabled Veteran-Owned Small Business. In reality, for long stretches, T.A. had virtually no involvement in C3T.
- Pagasa Construction Company, Inc. was misrepresented to be majority owned and controlled by O.M. in order to obtain certification as a Small Disadvantaged Business from the SBA. In reality, O.M. relied on the assistance of conspirators to form Pagasa.
The Indictment alleges that the defendants used those certifications to obtain over $200 million in federal, state, and local contract payments. These included federal construction contracts that were set aside for Small Disadvantaged Businesses or Service-Disabled Veteran-Owned Small Businesses. The Indictment also alleges that the scheme included using Nuvo’s
DBE certification to win ready-mix concrete contracts based on the false representation that Nuvo provided ready-mix concrete independently when, in truth, Nuvo’s concrete operations depended heavily on Sonag Ready Mix. As a part owner of Sonag Ready Mix, Nicholas Rivecca, Sr. agreed to plead guilty to that portion of the scheme.
According to the Indictment, on multiple occasions, the conspirators engaged in efforts to conceal the scheme and obstruct investigations into the matter. It alleges that, when interviewed, Ganos and Spindler each gave materially false statements to federal agents.
The Indictment also alleges that Ganos conspired with Sonag Company, Inc. and others to launder proceeds of the fraud scheme in order to disguise and conceal the nature, source, and location of those fraud proceeds. As a part of that conspiracy, Ganos is alleged to have transferred fraud proceeds from accounts of Nuvo and C3T to accounts that Ganos controlled. The Indictment further charged Ganos with three counts of concealment money laundering transactions, one of which involved the purchase of a Corvette with proceeds of the fraud scheme, and seven counts of spending money laundering transactions.
United States Attorney Krueger stated: “These charges send a clear message to firms that seek public funds. Cheating will not be tolerated. Lying to regulators is a serious crime. And attempts to obstruct investigations will be prosecuted vigorously. We commend the collaboration and commitment of the federal agencies that investigated this case. Their work will help protect programs that assist honest firms led by disadvantaged individuals and veterans who were injured while serving our country.”
Special Agent-in-Charge Justin Tolomeo of the Federal Bureau of Investigation added: “The FBI considers these charges an aggressive move toward justice for the legitimate minority, disadvantaged and service-disabled veteran small business owners of Wisconsin, who were harmed when the defendants abused the government programs that were designed to help them succeed. The FBI credits effective interagency collaboration for this success.”
"The GSA Office of Inspector General will aggressively pursue contractors who make false representations in order to obtain federal contracts” said Special Agent-in-Charge, Stuart G. Berman. “Schemes to fraudulently access opportunities designated as set-aside contracts cheat the government and deserving bidders.”
Special Agent-in-Charge Gregg Hirstein of the VA Office of Inspector General added, “The VA’s Service-Disabled Veteran-Owned Small Business set-aside program is designed to assist our nation’s service-connected veterans in their legitimate post-service endeavors, not to further enrich already well established successful companies. The VA Office of Inspector General aggressively pursues cases in which this program is defrauded. Anyone aware of an ongoing similar fraud scheme can report that to the VA OIG Hotline by calling 1-800-488-8244 or emailing [email protected].”
“The Defense Criminal Investigative Service will investigate all allegations of abuse related to Government set aside programs designed to encourage and support veteran, woman and minority owned small businesses. DCIS will pursue all appropriate criminal, civil and administrative actions against individuals who abuse these programs for illicit financial gain,” stated John F. Khin, Special Agent in Charge, Southeast Field Office.
“Today’s charges stand as a deterrent to those who would engage in fraud and corruption for personal gain, and are a testament to the thorough and professional effort of our investigative and prosecutorial team,” said Special Agent-in-Charge Brian Hauck, of the U.S. Army Criminal Investigation Command's North Central Fraud Field Office. “We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of U.S. Government programs and resources within our purview.”
“DBE fraud harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts,” said Thomas J. Ullom, Regional Special Agent-in-Charge of the U.S. Department of Transportation (DOT) Office of Inspector General. “Our agents will continue to work with the Department, the Federal Highway Administration, and other Federal, State, and local law enforcement and prosecutorial partners to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs in Wisconsin and throughout the country.”
“The egregious fraud scheme alleged to have been perpetuated by the individuals and businesses subject to this Indictment denied eligible service-disabled, veteran-owned small business and other disadvantaged small businesses opportunities to prosper and grow their businesses,” said SBA OIG Central Region Special Agent-in-Charge Talmadge J. Gaylor. “Federal contracts set aside for eligible service-disabled, veteran-owned and other disadvantaged small businesses are intended to grow these businesses and expand the nation’s economic base. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their investigative leadership and dedication.”
The maximum penalties for each of the wire and mail fraud-related charges are 20 years in prison, a $250,000 fine, and forfeiture of criminal proceeds. The maximum term of imprisonment for conspiring to defraud the United States is five years. The maximum term of imprisonment for the money laundering conspiracy and for each of the three concealment money laundering charges is 20 years in prison. The maximum term of imprisonment for each of the seven spending laundering charges is 10 years in prison. Each of the 11 money laundering charge also carries a fine of up to $250,000 or twice the amount laundered and subjects the defendant to forfeiture of all money and property involved in the laundering transaction.
The forfeiture notice of the Indictment indicates that the United States seeks to forfeit real property located at 201 Zephyr Way, #2800, Winter Park, Colorado, and at 5500-5510 West Florist Avenue, Milwaukee, Wisconsin; a 2014 Chevrolet Corvette Stingray Convertible; and more than $2.2 million seized from two bank accounts. Each of those assets is subject to civil forfeiture actions filed by the United States.
The following agencies are participating in the investigation: the Federal Bureau of Investigation; U.S. General Services Administration, Office of Inspector General; Department of Veterans Affairs, Office of Inspector General; Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; U.S. Department of Transportation, Office of Inspector General; U.S. Small Business Administration, Office of Inspector General, Investigations Division; Defense Contract Audit Agency; U.S. Army Criminal Investigations Command Major Procurement Fraud Unit.
The case is being prosecuted by United States Attorney Matthew D. Krueger and Assistant United States Attorney Zachary J. Corey. The related civil forfeiture cases are being prosecuted by Assistant United States Attorney Scott J. Campbell.
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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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Methamphetamine Trafficking and Firearms Offenses in the Fox Valley Region Leads to Prison Sentences for EightRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that eight individuals were sentenced after convictions for drug trafficking in Northeastern Wisconsin. The sentences imposed by Chief United States District Judge William C. Griesbach were the result of guilty pleas by all eight individuals between May 11, 2017 and January 11, 2018:
Defendant
Charge of Conviction
Sentencing date
Months of Prison
Months of Supervised Release
Brady Pomeroy
Conspiracy to Distribute Methamphetamine
9/8/17
120
60
Brady Pomeroy (2nd Charge)
Possession of a Firearm in Furtherance of Drug Trafficking Crimes
9/8/17
60 (consecutive; 180 months total)
36
Teng Her
Conspiracy to Distribute Methamphetamine
8/21/17
120
60
David Ly
Conspiracy to Distribute Methamphetamine
7/14/17
120
60
Zoey Scott
Conspiracy to Distribute Methamphetamine
10/3/17
40
60
Curtis Whitaker
Conspiracy to Distribute Methamphetamine
9/11/17
31
60
Zachary Hietpas
Conspiracy to Distribute Methamphetamine
11/27/17
18
60
Zachary Kryzaniak
Conspiracy to Distribute Methamphetamine
9/15/17
12 months and 1 day
60
Omar Sanchez
Distribution of Methamphetamine
3/29/18
40
72
The investigation revealed that the defendants conspired amongst themselves and with others, and distributed a large quantity of methamphetamine in the Fox Valley region of Northeastern Wisconsin. The defendants obtained methamphetamine from sources in the Los Angeles and San Francisco Bay Areas of California, who sent several packages containing a half-pound or more of methamphetamine to the defendants. The defendants also obtained methamphetamine directly from locations in Milwaukee and California. The defendants used a residence in Fox Crossing, and a business in Menasha, to repackage and transfer the methamphetamine to local distributors. Several controlled purchases and multiple search warrants led to the recovery of large quantities of methamphetamine, packaging material, drug ledgers, currency, ammunition, and firearms.
Chief Judge Griesbach noted the seriousness of the offenses the defendants committed, and remarked that the defendants caused immeasurable damage to the community through the sale and distribution of what he called “poison.”
The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group-Drug Unit and US Drug Enforcement Administration, with assistance from the Appleton Police Department, Oshkosh Police Department, Menasha Police Department, Neenah Police Department, Fox Crossing Police Department, and the Wisconsin State Crime Laboratory. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
New London Drug Dealer Receives 17 Years in Federal Prison for Overdose DeathRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 26, 2018, Tyler A. Kuhnke (age: 27) of New London, Wisconsin, appeared in federal court in Green Bay and was sentenced to 17 years in federal prison for distribution of fentanyl, resulting the death of a close relative in June of 2017.
Kuhnke admitted travelling with the victim to his drug source in Oshkosh for the purpose of obtaining heroin. The heroin was, unbeknownst to Kuhnke and the victim, an especially potent form of fentanyl. The medical examiner determined that the victim died of acute fentanyl toxicity.
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the “terribly serious” nature of Kuhnke’s crime and the negative effect that fentanyl has had on the community, calling it “a poison that’s killing people.” He found that Kuhnke was aware of the inherent dangers of distributing illegal substances, and it was noted during the hearing that Kuhnke had previously supplied drugs that led to a non-fatal overdose of the same victim in 2016. Following his release from prison, Kuhnke will serve 8 years on federal supervised release.
The case was investigated by the New London Police Department and the Winnebago County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Menominee Man Indicted for Armed Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 27, 2018, a federal grand jury returned a one-count indictment against a man allegedly involved in an armed assault on the Menominee Indian Reservation. Shawn T. Sanapaw (age: 34) of Keshena, was charged with Assault with a Dangerous Weapon in violation of Title 18 United States Code 113(a) (3). Sanapaw faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on about September 29, 2017, Sanapaw assaulted another person with a firearm. The Menominee Tribal Police Department 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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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Woman Sentenced to Five Years in Prison for Multi-Million Dollar Tax Return SchemeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 14, 2018, Amalia Gamboa (age 41), of Milwaukee, Wisconsin, was sentenced in federal court to 5 years in prison for fraudulently obtaining over $4.6 million in tax refund checks. The sentence followed her guilty plea to mail fraud, in violation of Title 18 United States Code, Section 1341, theft of government money, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Gamboa was also ordered to pay $4,681,690.42 in restitution to the Internal Revenue Service. Gamboa additionally agreed to be voluntarily deported after her prison sentence to Mexico due to her lack of legal status in the United States.
Gamboa committed her theft by fraudulently obtaining Individual Tax Identification Numbers (“ITINs”) from the IRS. An ITIN is what the IRS issues to individuals who cannot, due to their immigration status, obtain a Social Security number. Individuals who obtain an ITIN use it to file their income tax returns.
To obtain an ITIN, an applicant has to provide the IRS certain personal identifying documents, such as national identifications or voter cards. Gamboa obtained personal identifying documents from citizens of Mexico, fraudulently applied for ITINs in their names, and then filed false tax returns using the ITINs she obtained.
In the fraudulent tax returns that she filed, Gamboa claimed the Additional Child Tax Credit (“ACTC”). The ACTC reduces tax liability dollar for dollar, and the unused portion of a refundable credit is still payable to the taxpayer. Accordingly, even someone who has no tax liability may qualify to receive the ACTC. Gamboa falsely claimed dependents in the tax returns that she filed to fraudulently receive the ACTC.
From November 2010 through March 2017, Gamboa received at least $4,681,690.42 in U.S. Treasury refund checks from her scheme. When handing down the sentence, United States District Judge Pamela Pepper said that anyone who commits tax fraud “steals from every hard working person who pays taxes in the country,” and Judge Pepper stated that her sentence must “send a message” to others that tax fraud offenses are serious crimes that require significant sentences. Judge Pepper also said, referring to tax fraud cases over which she has presided, that she had “never seen a single person responsible for this much loss in my time as a judge,” and further described the amount that Gamboa stole as “mind blowing.”
“IRS Criminal Investigations is sworn to protect the tax system and bring to justice those who steal from the U.S. Treasury,” said St. Paul Acting Special Agent in Charge Hubbard Burgess. “The IRS and Department of Justice remain determined and vigilant in ferreting out these types of identity theft cases and holding those who engage in similar behavior fully accountable.”
“This case sends a clear warning: Tax fraud and identity theft are serious crimes and will be prosecuted aggressively. The honest taxpayers that fund our government deserve to know that cheaters face real punishment. We commend IRS Criminal Investigation for its excellent work in this case.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Keith Alexander.
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Milwaukee Man Receives 10 Year Sentence for Green Bay Drug DistributionRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 5, 2018, Levester R. Brown (age: 33) of Milwaukee, Wisconsin, appeared in federal court in Green Bay and was sentenced to 120 months in federal prison for his role in a methamphetamine distribution ring in Northeast Wisconsin.
In the Spring of 2017, Brown repeatedly travelled from his residence in Milwaukee to Phoenix, Arizona, for the purpose of obtaining pounds of pure methamphetamine. Brown then utilized the U.S. Postal Service to ship the methamphetamine to acquaintances in Milwaukee and Brown Deer, Wisconsin. He would then transport the drugs to his main distributor in Green Bay.
On June 6, 2017, Special Agents with the federal Drug Enforcement Administration and the U.S. Postal Inspection Service arrested Brown as he attempted to ship approximately 9 pounds of methamphetamine to his associates in Wisconsin.
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the serious nature of Brown’s crime and the negative effect that methamphetamine has had on the community. The judge told Brown that his crime called for a harsh sentence. Following his release from prison, Brown will serve 10 years on federal supervised release.
The case was investigated by the U.S. Postal Inspection Service, the U.S. Drug Enforcement Administration, and the Brown County Drug Task Force. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Matthew Krueger Becomes United States Attorney for the Eastern District of WisconsinRead the Press Release
Matthew D. Krueger has taken the oath of office to become the United States Attorney for the Eastern District of Wisconsin. United States Attorney Krueger was nominated by President Donald Trump and confirmed by the U.S. Senate on February 15th. He took the oath of office from Chief United States District Judge William C. Griesbach this afternoon.
“It is truly an honor to serve as the United States Attorney for the Eastern District of Wisconsin,” said United States Attorney Krueger. “I am looking forward to working with the men and women of the United States Attorney’s Office and continuing our strong partnerships with local, state, and federal officials. Our community faces serious problems, including violent crime, too many deaths from opioids, human trafficking, and various fraud schemes. Working together with federal, state, and local partners, we’ll seek to improve the quality of life in eastern Wisconsin.”
As United States Attorney, Mr. Krueger is the top-ranking federal law enforcement official in the Eastern District of Wisconsin. The Eastern District consists of the 28 counties in the eastern portion of the state, and includes the cities of Milwaukee, Green Bay, Racine, Kenosha, Sheboygan, Oshkosh, and Appleton. He will oversee a staff of 77 employees, including 41 attorneys and 36 support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, firearms, narcotics, child exploitation, human trafficking, financial fraud, healthcare fraud, and public corruption. The office also represents the United States in affirmative and defensive civil cases, and collects debts owed to the United States.
Before taking office, United States Attorney Krueger was an Assistant United States Attorney in the Eastern District of Wisconsin. He has served in that role since 2013, first in the Civil Division and then in the Criminal Division. He prosecuted a variety of federal crimes, including firearm offenses, health care fraud, and other financial crimes. United States Attorney Krueger previously worked as an associate at Sidley Austin LLP in Washington, DC. He also served as a Bristow Fellow in the U.S. Department of Justice, Office of the Solicitor General. He clerked for the Honorable Paul V. Niemeyer of the United States Court of Appeals for the Fourth Circuit.
United States Attorney Krueger received his B.S., with honors, from the University of Wisconsin-Madison, and his J.D., summa cum laude, from the University of Minnesota Law School where he served as Editor in Chief of the Minnesota Law Review.
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Milwaukee Man Sentenced to 25 Years in Federal Prison for Sex TraffickingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that Terrell Shankle, a/k/a “King Relly” (age 40), of Milwaukee was sentenced yesterday to 25 years in prison and 5 years supervised release for sex trafficking crimes. Shankle was found guilty after a federal jury trial on September 6, 2017, of five counts of sex trafficking a minor and sex trafficking a person using force, fraud, or coercion, and one count of conspiracy to transport a minor across state lines to engage in prostitution.
The evidence presented at trial established that Shankle was a violent sex trafficker who, between September 2006 and May 2012, used force, fraud, and coercion to cause a number of minor and adult female victims to engage in prostitution. Victims of Shankle’s sex trafficking testified that he recruited girls as young as 16 years old to engage in prostitution with false promises of money and a better life. He then used physical violence and threats of violence to force them to engage in prostitution in Milwaukee and Chicago for his profit. Shankle even had some of his victims get tattoos of his name to signify his ownership of them.
One victim testified that Shankle beat her nearly every day for three years starting when she was 16 years old. On one occasion, he struck her repeatedly in her face with his “pimp cane,” and he beat her again for seeking medical treatment for the resulting injuries. Shankle often told this victim that he would kill her family if she tried to leave him. Another victim testified that Shankle pressed the barrel of a pistol against her head because he believed she withheld money from him. This victim also saw Shankle fire a gun at another victim’s feet after she purportedly disobeyed him.
United States Attorney Haanstad stated that “Sex traffickers prey upon some of the most vulnerable members of society, subjecting victims to extraordinary levels of violence and brutality to force them to engage in commercial sex acts. This prosecution is the result of an outstanding joint investigation on the part of the Federal Bureau of Investigation and the Milwaukee Police Department. The United States Attorney’s Office will continue to work with our federal, state, and local law enforcement partners to vindicate the rights of sex trafficking victims and to protect citizens from these violent and predatory offenses.”
The case was prosecuted by Assistant United States Attorneys Benjamin W. Proctor and Erica J. Lounsberry.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Tax Return Preparer Indicted for Filing False Claims for Tax RefundsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 13, 2018, a federal grand jury returned a thirteen count indictment against Kimberly Bagneski (47) formerly of Waupun, Wisconsin. The Indictment alleges that Bagneski prepared and filed false tax returns to the IRS that claimed false and fictitious claims for taxpayer refunds, in violation of Title 18, United States Code, Sections 2 and 287.
According to the indictment, Bagneski prepared and electronically filed at least 20 false federal income tax returns seeking more than $90,000 in federal tax refunds. On these returns, Bagneski claimed false deductions, tax credits and false business income/losses. In addition, virtually all of the fraudulent tax refunds were diverted to bank accounts under her control.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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For additional information contact:
Public Information Officer Dean Puschnig 414-297-1700