Eastern District of Wisconsin
Press releases recorded for this federal judicial district.
Wisconsin Man Pleads Guilty to Possession of Chemical Weapon PrecursorsRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 21, 2025, United States District Judge Brett Ludwig accepted the guilty plea of James Morgan (formerly Karactus Blome) to one count of possession of chemical weapon precursors—chemicals that combine to create chlorine and chlorine gas—not intended for peaceful purposes, in violation of Title 18, United States Code, Section 229(a).
According to court documents, on December 21, 2023, the Federal Bureau of Investigation (FBI) executed a search warrant at Morgan’s storage unit and found the precursor chemicals. Morgan had studied chemistry at the University of Wisconsin–Whitewater and had described himself as a weapon designer who did not need a conventional weapon. In a video, Morgan displayed the chemicals and said they were for making a lot of chlorine very quickly. In messages in 2022, he said that what he had was “scary,” and that the chemicals react to produce a lot of chlorine gas, which can be “effective if your enemy is not ready for it.” He sent links for purchasing the chemicals and discussed the amounts needed to make a lot of chlorine gas really fast. In messages in 2023, Morgan discussed a plan to defeat the government, if it came for his guns, by producing a large amount of chlorine that he claimed could be used against approximately twenty government agents. The FBI Laboratory determined that the chemicals Morgan possessed could produce a large amount of chlorine that could result in rapid, serious health effects, including death.
Sentencing is scheduled for August 1, 2025, before Judge Ludwig. Morgan faces up to life in prison, a $250,000 fine, and five years of supervised release after any period of imprisonment.
The FBI, the Janesville Police Department, and the Whitewater Police Department investigated the case, which also resulted in Morgan’s conviction for possession of destructive devices in the Western District of Wisconsin.
Assistant U.S. Attorney John Scully is prosecuting the case in the Eastern District of Wisconsin, Assistant U.S. Attorney Meredith Duchemin prosecuted the case in the Western District of Wisconsin, and Trial Attorney Justin Sher of the National Security Division, Counterterrorism Section, assisted on both prosecutions.
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Previously Convicted Felons from Waushara County Sentenced to Prison for Trafficking Methamphetamine and Firearms, including MachinegunsRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 15, 2025, Senior United States District Judge William C. Griesbach sentenced John D. Taylor (age: 37) to a total of eight years’ imprisonment and five years’ supervised release after Taylor pled guilty to Dealing Firearms Without a License, Felon in Possession of Firearms, Transfer and Possession of Machineguns, and Possessing Firearms in Furtherance of Drug Trafficking, in violation of Title 18, United States Code, Sections 922(a)(1)(A), 922(g)(1), 922(o), & 924(c).
Relatedly, on November 22, 2024, Judge Griesbach had sentenced Taylor’s co-defendant, Allison A. Mundt (age: 31) to a total of seven years’ imprisonment and five years’ supervised release after Mundt pled guilty to Dealing Firearms Without a License, Felon in Possession of Firearms, and Possessing Firearms in Furtherance of Drug Trafficking, in violation of Title 18, United States Code, Sections 922(a)(1)(A), 922(g)(1), & 924(c).
According to court records, in March and April 2024, law-enforcement officers developed information that Taylor and Mundt, previously convicted felons living in Waushara County, were offering firearms for sale. Law enforcement arranged controlled purchases of firearms and methamphetamine from Taylor and Mundt, which culminated in a search warrant. In all, the investigation recovered approximately 35 firearms, including machineguns, short-barrel rifles, short-barrel shotguns, and pistols, some with no serial numbers.
Officers also seized drum magazines and other high-capacity magazines, over 1,700 rounds of ammunition, and an ounce of methamphetamine intended for distribution.In sentencing Taylor and Mundt, Judge Griesbach stressed that trafficking in firearms without a license circumvents background checks, increasing the risk that firearms will end up in the hands of convicted felons and other prohibited persons. The court noted that such conduct is even more dangerous with machineguns and other high-capacity rifles and pistols. Moreover, these defendants were previously convicted felons who were using and distributing methamphetamine.
This case was investigated by the Waushara County Sheriff’s Department, Lake Winnebago Area Metropolitan Enforcement Group Drug Unit, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Timothy Funnel.
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Oshkosh Man Indicted on Production of Child Pornography ChargesRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 15, 2025, a federal grand jury issued an indictment alleging that Bradley D. Hounsell (age: 43) of Oshkosh, Wisconsin, “attempted to and did employ a minor under the age of 18, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct” in violation of Title 18, United States Code, Sections 2251(a), 2251(e), and 2(a).
According to the unsealed indictment, between on or about November 4, 2023, and November 8, 2023, Hounsell is alleged to have employed, used, persuaded, induced, enticed, and coerced a minor for the purpose transporting child pornography via the internet. If convicted of the offense, Hounsell faces a mandatory minimum sentence of 15 years’ imprisonment and up to 30 years of incarceration. He may also be fined up to $250,000 and would be required to register as a sex offender under state and federal law.
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 Federal Bureau of Investigation with the assistance of the Winnebago County Sheriff’s Office. It will be prosecuted by Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and 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 his guilty beyond a reasonable doubt.
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Neenah Man Sentenced to Five Years’ Imprisonment for Distribution of Child PornographyRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on Monday, April 14, 2025, Roberto De La Rosa (age: 45) of Neenah, Wisconsin, was sentenced to 60 months in federal prison by Senior District Judge William C. Griesbach.
According to court records, in October 2024, law enforcement received a cybertip that De La Rosa possessed and distributed numerous digital images and videos of child sexual abuse material (“CSAM”). Further investigation revealed that De La Rosa repeatedly accessed, viewed, collected, and distributed CSAM on numerous occasions.
During the sentencing hearing, Judge Griesbach noted the serious nature of the charge, the need to protect the public, and a strong need for just punishment. Following his release from prison, De La Rosa will spend 7 years on supervised release. He will also be required to register as a sexual offender.
This case was investigated by the Winnebago County Sheriffs’ Office. 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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Fentanyl and Firearms Trafficker Sentenced to Fifteen Years in Federal PrisonRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 11, 2025, Azjuan Meriwether (age: 25) of Milwaukee, was sentenced to 15 years in federal prison for drug and firearm offenses.
According to court records, a proactive law enforcement investigation revealed that Meriwether was the leader of an armed drug trafficking organization responsible for distributing at least 32 kilograms of fentanyl, at least 375 grams of para-fluorofentanyl (a fentanyl analogue), as well as methamphetamine, cocaine, and other drugs. Meriwether and his organization also engaged in firearms trafficking involving the illegal sale of firearms, machinegun-conversion devices, also known as “switches,” and “ghost guns.” “Ghost guns” are privately made firearms, often assembled from pre-made kits, that do not possess serial numbers or other identifying markings, which make the firearms difficult to trace back to the original purchaser and manufacturer. As part of his plea agreement, Meriwether agreed that he personally and illegally sold 18 firearms and 6 “switches.” Below is a photograph from the court record of firearms recovered as a result of this investigation.
As a result of the investigation, Meriwether was arrested in Indiana. Before his arrest, Meriwether led officers on a high-speed chase that lasted approximately 2 hours and involved Meriwether driving his vehicle the wrong way on a highway, endangering civilians and officers. Law enforcement ultimately recovered approximately 375 grams of para-fluorofentanyl combined with heroin, approximately 165 grams of methamphetamine, and approximately 29 grams of cocaine from Meriwether’s vehicle.
“The conduct at issue in this case presented layer upon layer of danger to the community,” said Acting U.S. Attorney Frohling. “This individual and his organization not only distributed dangerous – potentially lethal -- controlled substances but also further endangered others through the sale of switches and ghost guns. The sentence imposed in this case is the direct result of strong partnerships among federal and local agencies, supported by the North Central High Intensity Drug Trafficking Areas (HIDTA). I commend the agents, task force officers, and support personnel who worked tirelessly to build this investigation and hold Mr. Meriwether accountable for his actions.”
“Meriwether’s possession and sale of fentanyl and Machine Gun Conversion Devices posed a dual threat to our communities,” stated Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) Chicago Field Division Special Agent-in-Charge Christopher Amon. “Through the use of NIBIN and collaborations like those seen in the Waukesha County Drug Task Force, law enforcement was able to link firearms possessed by Meriwether to violent acts.
Taking him off the streets helps stop the flow of drugs and Machine Gun Conversion Devices into our communities, which reduces crime, protects residents, and fosters safer neighborhoods.”
“The DEA and their partners from the Waukesha County Sheriff’s Department continue to relentlessly pursue dangerous fentanyl traffickers like Meriwether. The DEA is grateful to the Waukesha County Sheriff’s Department for their unwavering commitment to dismantle violent drug-trafficking organizations and keep our communities safe,” said U.S. Drug Enforcement Administration (DEA) Milwaukee District Office Assistant Special Agent in Charge John G. McGarry.
“This investigation originated in a small Waukesha County community and through the hard work of our local Drug Task Force, and their partnership with federal law enforcement agencies, a criminal organization was dismantled. These law enforcement relationships are paramount to effectively maintaining safety in our communities,” said Captain Tony Kasta, Waukesha County Drug Task Force.
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This matter was investigated by ATF, the Drug Enforcement Administration (DEA), and Waukesha County Drug Task Force, through a coordinated partnership supported by the North Central HIDTA.
In addition to the investigating agencies noted above, multiple law enforcement agencies participated in arrests, the execution of search warrants, and other matters related to the case, including the United States Marshals Service (USMS), the Wisconsin Department of Justice, Division of Criminal Investigation (WI DOJ-DCI), the Waukesha County Sheriff’s Department, the Milwaukee County Sheriff’s Department, the Washington County Sheriff’s Department, the Milwaukee Police Department, the West Allis Police Department, as well as the Indiana State Patrol, Vermillion County (Indiana) Sheriff’s Office, and the Vermillion County District Attorney’s Office.
The case was prosecuted by Assistant United States Attorneys Katherine Halopka-Ivery and Patricia Daugherty.
Affiliated Companies Agree to Pay $10.8 Million to Resolve Allegations that They Fraudulently Obtained COVID-19 LoansRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 2, 2025, a group of affiliated companies controlled by a family office have agreed to pay $10,853,246.94 to settle allegations that they violated the False Claims Act by submitting false certifications in connection with loans under the Paycheck Protection Program (“PPP”). The affiliated companies include: Barrington Venture Holding Company LLC; The Club at Strawberry Creek LLC; The Garlands of Barrington LLC; Nuestro Queso, LLC; SSCO LLC; and Tire Profiles LLC.
The PPP loan program, created by Congress in March 2020 through the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, provided emergency financial assistance to small businesses suffering from the economic effects of the COVID-19 pandemic. The program allowed eligible businesses to apply for loans that, if spent on payroll and other eligible expenses, could be forgiven and repaid on the borrower’s behalf by the federal government. When applying for a loan and for forgiveness, borrowers were required to certify that they were eligible for the PPP and that the information provided was accurate.
Congress limited eligibility for PPP loans to businesses with less than 500 employees (or less than an industry-based size standard, if applicable). 15 U.S.C. § 636(a)(36)(D)(i). With respect to counting employees, Congress adopted the Small Business Administration’s pre-existing “affiliation rules,” which require businesses under common ownership or control to add their employee counts together when determining their size. 15 U.S.C. § 636(a)(36)(D)(vi); 13 C.F.R. § 121.301(f)(1), (3) & (6) (effective March 27, 2020, to September 7, 2021). The Small Business Administration’s regulations also make clear that companies are to count all employees equally, including part-time and temporary employees the same as full-time employees. 13 C.F.R. § 121.106(a), (b)(2) & (4)(i).
This settlement resolves allegations that four of the family office affiliates—The Club at Strawberry Creek LLC; The Garlands of Barrington LLC; Nuestro Queso, LLC; and Tire Profiles LLC—falsely certified that they were eligible for the PPP loans they received. Collectively, these family office companies received six PPP loans totaling over $5 million in principal value, despite collectively employing more than 500 individuals (and not otherwise complying with an alternative size-standard). The government alleges that these entities knew that they were ineligible for the PPP loans that they received but that they applied anyway and took affirmative steps to avoid detection by regulators.
“When it passed the Paycheck Protection Program, Congress made policy decisions about what types of businesses would and would not be eligible for the pandemic-relief resources that it made available,” said Acting United States Attorney Frohling. “Congress decided that it did not want to provide taxpayer dollars to large companies or groups of affiliated companies who likely had access to private sources of capital typically unavailable to American small businesses.The eight-figure settlement announced today reflects the continuing commitment of the Department of Justice and the Small Business Administration to hold accountable sophisticated businesses that abused this emergency program.”
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other Federal law enforcement agencies to recover the product of this fraud as well as penalties,” said SBA General Counsel Wendell Davis.
The United States encourages anyone with information about potential fraud involving COVID-19 to report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. PPP recipients also may voluntarily disclose self-discovered evidence of fraud involving the PPP to their district’s U.S. Attorney’s Office.
Assistant United States Attorney Aaron R. Wegrzyn represented the government in connection with this matter, with assistance from Kandace Zelaya in the Small Business Administration’s Office of Litigation and Office of General Counsel.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Appleton Businessman Sentenced to 24 Months’ Imprisonment for Failing to Pay Employment TaxesRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of announced that on April 4, 2025, Douglas Larson, age 72, was sentenced to 24 months in federal prison for failing to pay over $1,000,000 of employment taxes he owed.
According to court records, Larson was the owner and operator of Mods International, later known as Mods Client Services, which manufactured and installed residential and commercial buildings out of shipping containers. Larson failed to pay over $1,000,000 in employment taxes his businesses owed over the course of nearly 14 years. At the same time, court records indicate that he spent significant money on luxuries for himself and his wife.
At sentencing, Senior United States District Judge William Griesbach highlighted the length and dollar amount of Larson’s crime. Judge Griesbach also emphasized that Larson has a significant history of fraud convictions, which date back to the 1970s and continue through Larson’s adult life. Judge Griesbach noted that a higher sentence may have been warranted except for Larson's failing health.
“This defendant withheld taxes from the employees of his businesses but willfully refused to pay the money over to the United States,” said Acting U.S. Attorney Frohling. “By doing so, he not only breached the trust of his employees but also caused a loss to every American taxpayer. I commend all involved in holding Mr. Larson accountable for his actions.”
“For over a decade, Douglas Larson chose personal luxury over his obligations to his employees and the tax system,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation remains committed to holding individuals accountable who seek to defraud the government and violate the trust of their employees and the American taxpayer.”
The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney Zachary J. Corey prosecuted.
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Milwaukee Man Sentenced to 11 Years in Federal Prison for Armed CarjackingsRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of announced today that James Poole (age 19) was sentenced to 11 years in federal prison for his role in armed carjackings in Milwaukee.
According to court records, Poole participated in two armed carjackings in late January 2024. In each of the carjackings, Poole brandished a firearm. On January 29, 2024, at approximately 7:45 pm, Poole committed a carjacking on the 2400 block of N. Farwell Avenue on the East Side of Milwaukee. The following day, at approximately 5:00 pm, Poole engaged in a carjacking in a parking lot in downtown Milwaukee, near 2nd Street and Plankinton Avenue. Shortly after the second carjacking, while driving the stolen vehicle, Poole led members of the Milwaukee Police Department on a high-speed chase through residential neighborhoods and reaching speeds of 90 mph. Poole ultimately crashed the stolen car into a tree near 82nd and Burleigh Streets, causing life-threatening injuries to all passengers inside the stolen vehicle. Following his term of imprisonment, Poole also will spend three years on supervised release. He also was ordered to pay restitution.
Poole’s co-defendant, Jabari Griffin (age 21), was sentenced on February 27, 2025, for his role in aiding and abetting Poole in the January 30, 2024, carjacking. Griffin was sentenced to 6 years in federal prison and three years of supervised release.
“Individuals who engage in violent crimes – like these armed carjackings – not only endanger the lives and well-being of their victims but also can shatter the confidence of all residents that our cities are safe places in which to live and work,” said Acting U.S. Attorney Frohling. “The U.S. Attorney’s Office remains committed to working with all of its federal, state, and local law enforcement partners to hold these individuals accountable for their actions and to pursue justice for all impacted victims.”
“Armed carjackings and the dangerous actions of those who committed the offenses in this case endangered the public and impacted the victims of this crime. This sentencing reflects the severity of the crimes committed by James Poole,” said FBI Milwaukee Special Agent in Charge Michael Hensle. “The FBI remains steadfastly committed to working with our partners to investigate violent crime matters—to include armed carjackings—in our ongoing efforts to positively impact public safety within our community.”
“The Milwaukee Police Department (MPD) is proud of the dedication and hard work of everyone involved in holding violent individuals accountable for their actions. Armed carjackings are violent acts that cause great harm to our community. Those that bring harm to our community must be held accountable.” said Milwaukee Police Chief Jeffrey Norman. “MPD values our collaboration with the community, federal, state and local law enforcement partners to build a safer city for everyone to live, work and play.”
This matter was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, including the Milwaukee Police Department. It was prosecuted by Assistant United States Attorneys Abbey M. Marzick and Michael C. Schindhelm.
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River Hills Man Sentenced to 21 Months’ Imprisonment for Paying Healthcare KickbacksRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that, on March 21, 2025, Justin Drew Hanson was sentenced to 21 months’ incarceration for paying healthcare kickbacks in violation of the Anti-Kickback Statute. Hanson was also ordered to pay over $2.2 million in restitution to Medicaid and Medicare as well as a $75,000 fine.
According to court records, Hanson and his co-defendant, Mohammed Kazim Ali, owned a Milwaukee-area clinical laboratory called Noah Associates. Beginning in 2017, Ali and Hanson engaged in a three-year-long scheme to pay kickbacks to the owner of a Milwaukee substance use treatment clinic in exchange for referrals of Medicaid and Medicare patients for urine drug testing performed by Noah Associates. Hanson and Ali procured sham agreements that further concealed their fraud, ultimately paying over $400,000 in kickbacks to procure the tests. The tests, however, were not ordered by any physician and were not medically necessary for the treatment of patients. As a result of the scheme, Medicaid and Medicare paid Noah Associates over $2.2 million for the unnecessary tests. Hanson personally received hundreds of thousands of dollars from Noah Associates during the scheme.
At sentencing, United States District Judge J.P. Stadtmueller emphasized the seriousness of Hanson’s crime, including Hanson’s manipulation and breach of trust of the Medicaid and Medicare programs to receive millions of dollars that were not truly earned. Judge Stadtmueller further noted that Hanson’s criminal conduct was significant and detrimental because he stole “from every taxpayer citizen in the United States.” In addition to his sentence, Hanson will also be excluded from participation in the Medicaid and Medicare programs and has shut down Noah Associates. His co-defendant, Ali, also pleaded guilty for paying healthcare kickbacks and was sentenced to 15 months’ imprisonment earlier this year.
“Mr. Hanson’s kickbacks resulted in Medicaid and Medicare – and taxpayers – repeatedly paying for unnecessary services,” said Acting U.S. Attorney Frohling. “Rather than bill the government for tests that patients truly needed, Hanson abused the Medicaid and Medicare programs for his own benefit. The United States Attorney’s Office is committed to working with its law enforcement partners to hold individuals who engage in these schemes accountable for their actions.”
"The FBI will relentlessly pursue individuals like Mr. Hanson whose actions defrauded the American people and wasted taxpayer money,” said Special Agent in Charge Michael Hensle of the FBI Milwaukee Field Office. “The FBI will continue to work with our local, state, and federal law enforcement partners to ensure those responsible for schemes to defraud the American people are brought to justice.”
“HHS-OIG is dedicated to protecting the integrity of Medicare and Medicaid and to ensure taxpayer money is used as intended to serve vulnerable populations,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “The kickback scheme in this case undermined the public’s trust in our nation’s health care system and can interfere with impartial medical decision-making. We will continue to work with our law enforcement partners to hold accountable those who manipulate taxpayer-funded health programs to boost their profits.”
The Federal Bureau of Investigation and the Office of the Inspector General, Department of Health and Human Services investigated the case. Assistant United States Attorneys Michael Carter and Julie Stewart handled the prosecution.
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Fugitive Firearms Trafficker Captured in Mexico as Part of Operation RipsawRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced the arrest of fugitive Roland Munoz (age: 44), who was wanted for trafficking firearms from the United States to a Mexican cartel.
On September 21, 2021, along with five other defendants, Munoz was charged in a 12-count indictment with violations of 18 U.S.C. §§ 371 (conspiracy to violate the laws of the United States), 554 (smuggling goods from the United States), 922(a)(6), and 924(a)(2) (straw purchasing firearms), and 22 U.S.C. §§ 2778(b)(2) and 2778(c) and 22 C.F.R. §§ 121.1 and 127.1 (violation of the Arms Export Control Act and the International Traffic in Arms Regulations). In turn, the indictment was the result of a yearslong investigation called “Operation Ripsaw”and led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI).
The indictment charges a complex conspiracy to smuggle high-powered firearms from the United States to Mexico. According to court filings, Munoz led this conspiracy by recruiting straw purchasers of firearms in Wisconsin and other states, organizing couriers to transport those firearms and money across the nation, and arranging for smugglers to take the firearms across the border in Texas and provide them to a cartel in Mexico. The conspirators purchased and attempted to smuggle over 25 firearms. According to court records, many of those firearms were later recovered in Mexico, including a .50 caliber rifle which was recovered on December 12, 2020, after Mexican law enforcement authorities engaged a group of armed members of Cártel de Jalisco Nueva Generación (CJNG), a Mexican transnational criminal organization.
Munoz’s arrest was made in coordination with officials in Mexico and is the result of collaboration between the United States Marshals Service, ATF, and HSI.
If convicted of these offenses, Munoz faces a maximum of 20 years in prison and up to a $1 million fine. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
As noted above, ATF and HSI investigated the case. Assistant United States Attorneys Philip T. Kovoor and Christopher Ladwig will prosecute the case in the United States District Court in Green Bay.
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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Subsidiary of Chinese State-Owned Entity to Pay $14.2M to Resolve False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin joins Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division, in announcing that YAPP USA Automotive Systems, Inc., a corporation with its principal place of business in Michigan, has agreed to pay $14,208,496 to resolve allegations that it violated the False Claims Act by submitting false claims to obtain a Paycheck Protection Program (PPP) loan for which it was not eligible.
Congress created the PPP in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible businesses could receive forgivable loans guaranteed by the Small Business Administration (SBA). Regulations provide various eligibility requirements for the PPP, including limitations on the number of employees and exclusions for certain types of businesses, like those that are owned by government entities. In their loan applications, borrowers were required to certify that they were eligible for the PPP and that the information they provided was accurate.
YAPP USA’s ultimate parent company is State Development and Investment Corp., Ltd, a company owned and controlled by the People’s Republic of China. Through common ownership and management, YAPP USA is affiliated with dozens of other companies worldwide. In applying for a first-draw PPP loan, YAPP USA represented that it was eligible for the PPP, and it received a first-draw PPP loan in the amount of $9,598,462, which the SBA later forgave. The United States alleged that YAPP USA was not eligible under the SBA rules for a PPP loan because YAPP USA, singly and together with its affiliates, employed more individuals than permitted by SBA’s size standard for its industry. The United States also contended that YAPP USA was not eligible because it is owned by a government entity.
YAPP USA will pay $14,208,496 to the United States to resolve these allegations.
YAPP USA cooperated with the United States’ investigation by identifying individuals involved in or responsible for the conduct and disclosing facts and documents gathered during YAPP USA’s own investigation. As a result, YAPP USA received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
“PPP loans were intended to help small businesses in the United States,” said Deputy Assistant Attorney General Granston. “The Department remains committed to pursuing those who violated the requirements of this taxpayer funded program.”
“Congress and the SBA designed the PPP to help small businesses and their employees during the pandemic, not large companies owned by foreign governments,” said Acting United States Attorney Frohling. “This settlement demonstrates that our office will continue to hold accountable those businesses and individuals who abused this vital program.”
“The favorable settlement in this case is the product of enhanced efforts byfederal agencies such as the Small Business Administration working with the Department of Justice, SBA’s Office of Inspector General and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties,” said SBA General Counsel Wendell Davis.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file an action on behalf of the United States and receive a portion of any recovery. The qui tam lawsuit was filed by GNGH2 Inc. GNGH2 Inc. will receive $1,420,849 in connection with this settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of Wisconsin, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
Trial Attorney Lindsey Roberts of the Civil Division and Assistant U.S. Attorney Michael Carter for the Eastern District of Wisconsin handled the matter, with assistance from Christopher J. McClintock of the SBA.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Subsidiary of Chinese State-Owned Entity to Pay $14.2M to Resolve False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
YAPP USA Automotive Systems Inc., a corporation with its principal place of business in Michigan, has agreed to pay $14,208,496 to resolve allegations that it violated the False Claims Act by submitting false claims to obtain a Paycheck Protection Program (PPP) loan for which it was not eligible.
Congress created the PPP in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible businesses could receive forgivable loans guaranteed by the Small Business Administration (SBA). Regulations provide various eligibility requirements for the PPP, including limitations on the number of employees and exclusions for certain types of businesses, like those that are owned by government entities. In their loan applications, borrowers were required to certify that they were eligible for the PPP and that the information they provided was accurate.
YAPP USA’s ultimate parent company is State Development and Investment Corp. Ltd, a company owned and controlled by the People’s Republic of China. Through common ownership and management, YAPP USA is affiliated with dozens of other companies worldwide. In applying for a first-draw PPP loan, YAPP USA represented that it was eligible for the PPP, and it received a first-draw PPP loan in the amount of $9,598,462, which the SBA later forgave. The United States alleged that YAPP USA was not eligible under the SBA rules for a PPP loan because YAPP USA, singly and together with its affiliates, employed more individuals than permitted by SBA’s size standard for its industry. The United States also contended that YAPP USA was not eligible because it is owned by a government entity. YAPP USA will pay $14,208,496 to the United States to resolve these allegations.
YAPP USA cooperated with the United States’ investigation by identifying individuals involved in or responsible for the conduct and disclosing facts and documents gathered during YAPP USA’s own investigation. As a result, YAPP USA received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
“PPP loans were intended to help small businesses in the United States,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “The Department remains committed to pursuing those who violated the requirements of this taxpayer funded program.”
“Congress and the SBA designed the PPP to help small businesses and their employees during the pandemic, not large companies owned by foreign governments,” said Acting U.S. Attorney Richard G. Frohling for the Eastern District of Wisconsin. “This settlement demonstrates that our office will continue to hold accountable those businesses and individuals who abused this vital program.”
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the SBA working with the Department of Justice, SBA’s Office of Inspector General, and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties,” said SBA General Counsel Wendell Davis.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file an action on behalf of the United States and receive a portion of any recovery. The qui tam lawsuit was filed by GNGH2 Inc; GNGH2 Inc. will receive $1,420,849 in connection with this settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Wisconsin, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
Trial Attorney Lindsey Roberts of the Justice Department’s Civil Division and Assistant U.S. Attorney Michael Carter for the Eastern District of Wisconsin handled the matter, with assistance from Christopher J. McClintock of the SBA.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Former Keshena Resident Receives 115-Month Prison Sentence for Serious Domestic Violence Offense on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 6, 2025, John V. Miller, Jr. (age: 43), an enrolled member of the Menominee Indian Tribe of Wisconsin and former resident of Keshena, received a 115-month prison sentence following convictions for strangulation and assault resulting in serious bodily injury.
The sentence, imposed by Senior United States District Judge William C. Griesbach, was the result of guilty pleas entered by the defendant on September 27, 2024. Miller will also face three years of supervised release once he completes his sentence.
According to publicly filed court documents, Miller severely injured his ex-wife during an assault in a wooded area outside Keshena, which is a community on the Menominee Indian Reservation. Miller kicked, struck, and punched the victim, who suffered a facial fracture and severe bruising and swelling. Miller also strangled the victim to the point of unconsciousness before leaving her in the woods. The victim awoke and found her way to a nearby mobile home, where the resident there called for help.
In sentencing the defendant, Judge Griesbach noted the seriousness of the crime the defendant committed and remarked upon the need to punish the defendant for his “brutal” and “horrendous” acts. The court discussed the seriousness of the offense from the perspective of the effect it had on the victim and the children she shares with the defendant. The defendant’s documented history of violence against this victim and a total of 20 prior convictions also factored in the court reaching its sentence. Judge Griesbach also observed the need to incarcerate the defendant for a lengthy period to protect the victim and public.
The case was investigated by the Menominee Tribal Police Department and FBI. Assistant United States Attorney Andrew J. Maier prosecuted the case in U.S. District Court in Green Bay.
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Former Keshena Resident Pleads Guilty to Fentanyl Distribution and Involuntary Manslaughter Related to Overdose Deaths in Tribal JailRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 7, 2025, Senior United States District Judge William C. Griesbach accepted the guilty pleas of Warren J. Grignon to one count of distribution of fentanyl in violation of 21 U.S.C. § 841 and one count of involuntary manslaughter in violation of 18 U.S.C. §§ 1111 and 1153(a).
According to the indictment and plea agreement, Grignon was an inmate at the Menominee Tribal Detention Center in Keshena on the Menominee Indian Reservation. On December 23, 2024, Grignon distributed fentanyl he smuggled into the jail to three other inmates. All three inmates overdosed. Two inmates were revived through the efforts of additional inmates, corrections staff, and responding officers from the Menominee Tribal Police Department. One inmate could not be revived and was pronounced dead. A later autopsy revealed the cause of death to be a fentanyl overdose.
The sentencing hearing is scheduled for May 16, 2025, at 10:30 a.m., before Judge Griesbach. Grignon faces a total sentence of up to 28 years in prison as well as fines and assessments for each count. Grignon also faces a minimum term of three years, and up to a lifetime of supervised release after completing any period of imprisonment.
The Menominee Tribal Police Department and FBI investigated the case, with valuable assistance from the Department of Pathology and Laboratory Medicine at the University of Wisconsin School of Medicine and Public Health. Assistant United States Attorney Andrew J. Maier is prosecuting the case in the United States District Court in Green Bay.
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Greenfield Man Sentenced to 15 Months’ Imprisonment for Paying Healthcare KickbacksRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that, on January 24, 2025, Mohammed Kazim Ali was sentenced to 15 months’ incarceration for paying healthcare kickbacks in violation of the Anti-Kickback Statute. Ali was also ordered to pay over $2.2 million in restitution to Medicaid and Medicare as well as a $75,000 fine.
Ali and his co-defendant, Justin Hanson, owned a Milwaukee-area clinical laboratory called Noah Associates. According to court records, beginning in 2017, Ali and Hanson engaged in a three-year-long scheme to pay kickbacks to the owner of a Milwaukee substance use treatment clinic in exchange for referrals of Medicaid and Medicare patients for urine drug testing performed by Noah Associates. Ali and Hanson paid over $400,000 in kickbacks to procure the tests. The tests, however, were not ordered by any physician and were not medically necessary for the treatment of patients. After one physician learned that his credentials were being used without his authorization to order the tests, the physician told Ali to stop. Ali nonetheless continued to have Noah Associates accept and bill the government for tests falsely ordered under that physician’s credentials for months. As a result of the scheme, Medicaid and Medicare paid Noah Associates over $2.2 million for the unnecessary tests. Ali personally received over $800,000 from Noah Associates during the scheme.
At sentencing, United States District Judge J.P. Stadtmueller emphasized the seriousness of Ali’s crime, including Ali’s manipulation and breach of trust of the Medicaid and Medicare programs to receive millions of dollars that were not truly earned. Judge Stadtmueller further noted that Ali knew that his conduct was criminal yet still engaged in a long-running, creative fraud scheme—a decision that Judge Stadtmueller criticized as “beyond belief.”
In addition to his sentence, Ali will also be excluded from participation in the Medicaid and Medicare programs and has shut down Noah Associates. His co-defendant, Hanson, has also pleaded guilty for paying healthcare kickbacks and will be sentenced on March 21, 2025.
“Paying kickbacks for patient referrals is illegal because, as this case demonstrates, kickbacks result in Medicaid and Medicare paying for unnecessary services,” said United States Attorney Haanstad. “Rather than bill the government for tests that patients actually needed, Ali abused the Medicaid and Medicare programs for ill-gotten gains. The United States Attorney’s Office is committed to prevent frauds against Medicaid and Medicare.”
“This sentence demonstrates the FBI’s commitment to investigating individuals like Mr. Ali who erode the public’s trust in our healthcare systems,” said Special Agent in Charge Michael Hensle of the FBI Milwaukee Field Office. “The FBI will continue to work with our law enforcement partners to ensure that those responsible for healthcare fraud are exposed and brought to justice. The safety and well-being of Wisconsin residents remains our highest priority.”
“Individuals and medical providers who accept kickbacks in exchange for the referral of patients covered under a Federal health care program place personal profit ahead of patient care, which can ultimately lead to the delivery of costly, medically unnecessary services,” said Mario M. Pinto, of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region. “Our agency is committed to working with our law enforcement partners to bring those who violate laws intended to protect patients, and our Federal health care programs, to justice.”
The Federal Bureau of Investigation and the Office of the Inspector General, Department of Health and Human Services investigated the case. Assistant United States Attorneys Michael Carter and Julie Stewart handled the prosecution.
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Wisconsin Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 16, 2025, U.S. District Judge Joseph Stadtmueller accepted the guilty plea of Vikram Naik to one count of filing a false individual income tax return, in violation of 26 U.S.C. § 7206(1).
On October 8, 2024, a federal grand jury returned an indictment charging Naik with three counts of filing false tax returns. According to the indictment and plea agreement, Naik willfully made and subscribed, under penalties of perjury, individual income tax returns (Forms 1040) for the years 2017, 2018, and 2019. Naik had federal income tax withholding amounts that were substantially less than what he reported on each of the returns he filed with the Internal Revenue Service (IRS) and, as a result, he had taxable income and total tax owed greater than he reported.
According to the plea agreement, Naik was an information technology consultant in Germantown, Wisconsin, who owned and operated Naik Consulting, Inc (NCI) since 2015. Naik provided IT consulting services to some clients who treated him as an employee, paid him wages, and provided annual Forms W-2. Other clients treated Naik as a contractor and paid NCI for Naik's consulting work. Naik was NCI’s only employee, and he issued himself a Form W-2 from NCI.
From 2016 through 2019, Naik inflated the federal tax withholdings on his Forms 1040. He falsely reported on Forms W-2 from his company, NCI, that it had withheld federal income tax from his wages in the amounts of $60,000 in 2017, $61,500 in 2018, and $146,000 in 2019. NCI never actually withheld and paid over to the IRS any federal income taxes from Naik’s wages. He did the same with some of his consulting clients in tax years 2018 and 2019, as well as his wife’s employer in 2018, inflating the federal income tax withheld. Due to the false withholding, his Forms 1040 claimed that he did not owe any taxes and instead was entitled to sizable refunds for each of those years. Naik’s false statements caused a tax loss of approximately $277,257.
“Individuals and businesses who willfully avoid our tax laws and file false returns cause harm to every American taxpayer,” stated U.S. Attorney Haanstad. “I commend the hard work and collaboration of everyone involved in investigating and prosecuting this case.”
“Federal income tax compliance is equally shared among all Americans,” said Jason Bushey, Acting Special Agent in Charge of the IRS Criminal Investigation, Chicago Field Office. “Attempting to defraud the government with elaborate federal tax withholding schemes is unlawful. Mr. Naik’s plea serves as an important reminder that as the 2025 filing season begins, IRS Criminal Investigation is committed to bringing to justice those who shirk their federal income tax responsibilities.”
Sentencing is scheduled for March 21, 2025, at 8:30 a.m., before Judge Stadtmueller. At sentencing, Naik faces up to three years in prison and a $250,000 fine. He also faces a term of supervised release after completing any period of imprisonment.
The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney John P. Scully is prosecuting.
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Manitowoc Sex Offender Sentenced to 25 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 17, 2025, Robert D. Nytes (age: 49) of Manitowoc, Wisconsin, was sentenced to 300 months in federal prison by Senior United States District Judge William C. Griesbach for receipt of child pornography.
According to court records, Nytes is a lifetime registrant on the Wisconsin Sexual Offender Registry based on a 1995 Second Degree Sexual Assault of a Child conviction in Sheboygan County. In August of 2023, law enforcement was informed that Nytes repeatedly sexually assaulted a minor and used the child to create pornography which he then uploaded to the cloud for receipt on his various electronic devices. Nytes was then charged with and pled guilty to a federal charge of receipt of child pornography.
At the sentencing hearing, Judge Griesbach said his crime was horrendous. The judge also noted the profound effects that Nytes had imposed upon his victim. The judge also pointed to Nytes’ history of abusing children. Ultimately, the judge determined that a sentence of 300 months in federal prison was a fair and just sentence reflective of the severity of the crime. Upon the completion of his federal prison sentence, the defendant will spend the remainder of his life on supervised release. He will also continue to be required to register as a sex offender under state and federal law.
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 Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Wisconsin Man Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 8, 2025, Senior United States District Judge William C. Griesbach accepted the guilty plea of Douglas Larson to one count of failure to truthfully account for and pay over employment taxes to the Internal Revenue Service (IRS), in violation of 26 U.S.C. § 7202.
On November 15, 2024, a one-count information was filed alleging that Larson had failed to pay over employment taxes for each quarter from January 2018 through September 2021. During that time period, Larson failed to pay over approximately
$396,082.77 in employment taxes that he withheld from his employees' paychecks. According to the plea agreement, Larson was the owner and operator of Mods International, later known as Mods Client Services (Mods), which manufactured and installed residential and commercial buildings out of shipping containers.
In addition to the tax loss alleged in the information, the parties agreed in the plea agreement that Mods (and a related company owned and operated by Larson) failed to pay over employment taxes they withheld as well as employment taxes they owed before and after time period described above. The total tax loss agreed to in the plea agreement was $1,102,805.13.
Sentencing is scheduled for April 4, 2025, at 10:30 a.m., before Judge Griesbach. At sentencing, Larson faces up to five years in prison and up to a $250,000 fine. He also faces up to three years of supervised release after completing any period of imprisonment.
The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney Zachary J. Corey is prosecuting.
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Shawano Woman Indicted for Drug Offense on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, a federal grand jury returned a one-count indictment charging a woman with possession with intent to distribute controlled substances following an incident on the Menominee Indian Reservation. The indictment named Dianna L. Chevalier, a 40-year-old enrolled member of the Menominee Indian Tribe of Wisconsin who was residing in the Shawano area.
The indictment charged Chevalier with Possession with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). If convicted of this offense Chevalier faces a maximum of 20 years in prison and up to a $1 million fine. Chevalier also faces a term of supervised release and a special assessment of $100 if convicted.
According to filed court documents, on or about September 10, 2024, while at a location on the Menominee Indian Reservation, Chevalier possessed methamphetamine in a quantity indicating an intent to distribute.
The Menominee Tribal Police Department, Menominee County Sheriff’s Office, and Federal Bureau of Investigation investigated the case. Assistant United States Attorney Andrew J. Maier will prosecute the case in the United States District Court in Green Bay.
Agencies investigated the case under the auspices of the FBI Safe Trails Task Force (STTF) and Wisconsin Department of Justice – Division of Criminal Investigation Native American Drug and Gang Initiative (NADGI). NADGI and STTF partner federal, tribal, state, and local law enforcement to combat drug trafficking and violent crime on the Menominee Indian Reservation. STTF members are deputized federal officers who identify and target for prosecution individuals who are involved in distribution of dangerous drugs on the Menominee Indian Reservation. Coordination of state resources through NADGI permits efficient communication and evidence processing, which are essential to swift but fair prosecution of offenders.
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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Shawano Man Indicted for Drug Offense on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, a federal grand jury returned a one-count indictment charging a man with possession with intent to distribute controlled substances following an incident on the Menominee Indian Reservation. The indictment named Jerome D. Crowe, a 37-year-old enrolled member of the Menominee Indian Tribe of Wisconsin who was residing in the Shawano area.
The indictment charged Crowe with Possession with Intent to Distribute Cocaine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). If convicted of this offense, Crowe faces a maximum of 20 years in prison and up to a $1 million fine. Crowe also faces a term of supervised release and a special assessment of $100 if convicted.
According to filed court documents, on or about November 19, 2024, while at a location on the Menominee Indian Reservation, Crowe possessed cocaine in a quantity indicating an intent to distribute.
The Menominee Tribal Police Department, Menominee County Sheriff’s Office, and Federal Bureau of Investigation investigated the case. Assistant United States Attorney Andrew J. Maier will prosecute the case in the United States District Court in Green Bay.
Agencies investigated the case under the auspices of the FBI Safe Trails Task Force (STTF) and Wisconsin Department of Justice – Division of Criminal Investigation Native American Drug and Gang Initiative (NADGI). NADGI and STTF partner federal, tribal, state, and local law enforcement to combat drug trafficking and violent crime on the Menominee Indian Reservation. STTF members are deputized federal officers who identify and target for prosecution individuals who are involved in distribution of dangerous drugs on the Menominee Indian Reservation. Coordination of state resources through NADGI permits efficient communication and evidence processing, which are essential to swift but fair prosecution of offenders.
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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Menominee Man Indicted for Involuntary Manslaughter and Fleeing Resulting in Death after Vehicle Crash on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, a federal grand jury returned a two-count indictment charging a man with involuntary manslaughter and fleeing an officer resulting in death following a vehicle crash on the Menominee Indian Reservation. The indictment named Desmond L. Waukau, Jr., a 21-year-old enrolled member of the Menominee Indian Tribe of Wisconsin who was residing in the Green Bay area.
The indictment charged Waukau as follows:
COUNTDATECHARGEPENALTYOneMay 19, 2024Involuntary Manslaughter in Indian Country, 18 U.S.C. §§ 1112 and 1153(a)Up to 8 years in prison; up to $250,000 fineTwoMay 19, 2024Fleeing an Officer Resulting in Death. 18 U.S.C. § 13(a) and Wis. Stat. §§ 346.04(3) and 346.17(3)(d)30-month mandatory minimum, up to 25 years in prison; up to $250,000 fineWaukau also faces terms of supervised release and special assessments of $100 per count if convicted.
According to filed court documents, on or about September 20, 2024, while at a location on the Menominee Indian Reservation, Waukau attempted to elude a marked police vehicle. Waukau accelerated the vehicle he was operating and, while under the influence of alcohol and a controlled substance, thereof crashed the vehicle. This is alleged to have caused the death of a passenger.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. Assistant United States Attorney Andrew J. Maier will prosecute the case in the United States District Court in Green Bay.
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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Oshkosh Man Indicted for Illegal Possession and Theft of a FirearmRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, a federal grand jury issued a two count indictment alleging that Donta E. Bradshaw (age: 42) of Oshkosh, Wisconsin, violated Title 18, United States Code, Sections 922(g)(1), 922(u), 924(i)(1), and 924(a)(8).
According to the indictment, on or about November 19, 2024, Bradshaw knowingly stole a Ruger semi-automatic 9mm pistol from a federally licensed firearms dealer located in Oshkosh. As a convicted felon, Bradshaw is prohibited from ever possessing a firearm under state and federal law. If found guilty, Bradshaw faces up to 15 years’ imprisonment on the possession charge and up to 10 years’ imprisonment for the theft of the firearm.
This case was investigated by the Oshkosh Police Department, the Winnebago County Sheriff’s Office, and the Milwaukee office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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 his guilty beyond a reasonable doubt.
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Milwaukee Man Sentenced to 45 Years’ Imprisonment for Sex TraffickingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, Samuel L. Spencer, a.k.a. “Bin Laden” (age: 53), of Milwaukee, Wisconsin, was sentenced to 45 years in federal prison, followed by 5 years of supervised release, after being convicted at trial of four counts of sex trafficking by force, fraud, or coercion, as well as conspiracy to commit sex trafficking.
The evidence at trial proved that Spencer, a drug dealer, used his access to cocaine and heroin to coerce women struggling with addiction into engaging in commercial sex acts to make money for him. In addition to strategically giving or withholding drugs, Spencer controlled his victims by depriving them of sleep and food, threatening them with firearms, and using extreme physical violence, which included strangling his victims, whipping them with belts, burning their skin, and kidnapping one woman in the trunk of his car after she tried to flee from him. During a two-week trial, the government introduced numerous exhibits that included Spencer’s own words boasting about his crimes and threatening to kill and disfigure his victims.
At the sentencing hearing, Chief United States District Judge Pamela Pepper emphasized that the 15-year duration of Spencer’s conduct was “almost impossible to get your brain around.” Judge Pepper said that the episodes of violence perpetrated by Spencer were some of the worst the court had ever seen. Judge Pepper also underscored the impact of Spencer’s crimes on his victims, emphasizing that Spencer “used force, threats, violence—and sometimes all three” to deprive his victims “of their human agency.”
“For more than 15 years, Samuel Spencer used a combination of violence, threats, forms of torture, manipulation, and financial control to coerce his victims to engage in commercial sex acts for one purpose – to make as much money for him as possible,” stated U.S. Attorney Haanstad. “This cruelty occurred day after day. I commend the relentless work of the investigative and prosecution teams to bring Mr. Spencer to justice, and I commend the courage and resolve of the victims who shared their testimony publicly to ensure that Mr. Spencer could not terrorize additional women in the same manner.”
“Mr. Spencer both physically and mentally harmed and exploited vulnerable women for more than 15 years,” said Special Agent in Charge Michael Hensle of the FBI Milwaukee Field Office. “The lengthy sentence issued by the court reflects the heinous nature of these crimes and that behavior of this type will be investigated and prosecuted to the full extent of the law. The women and men of the FBI along with our local partners are committed to investigating and obtaining justice for all victims of human trafficking in our Wisconsin communities.”
The Federal Bureau of Investigation (FBI) investigated the case with the assistance of the Milwaukee Police Department. Assistant United States Attorneys Erica J. Lounsberry and Julie F. Stewart prosecuted the case.
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Wisconsin Man Sentenced to 2 Years for Possessing Destructive DevicesRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James Morgan, 31, Jefferson, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 2 years in federal prison for possessing destructive devices. He pled guilty to the charge on April 16, 2024.
The FBI received information indicating that Morgan made and possessed destructive devices. Acting on that information, on December 21, 2023, local and federal law enforcement agents executed a federal search warrant at Morgan’s travel trailer in Janesville, Wisconsin. Morgan was living in the trailer at the time. Inside a locked safe in the trailer, agents found six improvised explosive devices. The devices were homemade and had several nails glued to the outside. The devices were rendered safe and sent to the FBI lab for formal testing. Experts from the FBI lab determined that the devices contained explosive powder and were in fact “destructive devices” under federal law.
During an interview with agents, Morgan admitted he made the devices with his father and referred to them as “grenades.” He said he knew they were illegal.
“We take these cases very seriously and will do everything necessary to ensure that individuals who make and possess destructive devices will be prosecuted in federal court,” said U.S. Attorney O’Shea.
“Homemade explosive devices pose a risk to the safety of Wisconsin residents,” said FBI Special Agent in Charge Michael Hensle of the Milwaukee Division. “Mr. Morgan’s reckless behavior could have caused destruction and death or serious bodily injuries. The FBI continues to work with our local law enforcement partners to hold criminals accountable and ensure public safety throughout the state.”
At sentencing, Judge Peterson expressed concern over Morgan’s decision to make and possess destructive devices, especially considering Morgan’s history of posting racist and anti-government sentiments on social media. Judge Peterson noted that explosive devices are inherently dangerous and that Morgan’s decision to add nails to the outside of the devices suggested a purpose beyond a simple fascination with explosives. Judge Peterson expressed hope that the federal prosecution would interrupt Morgan’s criminal conduct and give him an opportunity to redirect his life.
Morgan is still facing charges in the Eastern District of Wisconsin for possessing chemical weapons based on chemicals found in his storage locker in Whitewater, Wisconsin, the same day as the destructive devices were found in the Western District of Wisconsin. If convicted of this charge, Morgan faces a maximum penalty of life in prison. Unless and until Morgan is convicted of this charge, he is presumed innocent.
The charges in the Eastern and Western Districts of Wisconsin are the result of an investigation by the Federal Bureau of Investigation, the Janesville Police Department, and the Whitewater Police Department. Assistant U.S. Attorney Meredith Duchemin for the Western District of Wisconsin, Assistant U.S. Attorney John Scully for the Eastern District of Wisconsin, and Trial Attorney Justin Sher of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the cases.
Fox Point Man Sentenced to 24 Months’ Imprisonment for Investment Fraud SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 16, 2024, David Braeger (age 57), of Fox Point, Wisconsin, was sentenced to 24 months’ incarceration for committing an investment fraud scheme that resulted in a loss of over $2,500,000 to investors.
According to court records, David Braeger was previously barred by the Financial Industry Regulatory Authority (FINRA) from serving as a broker or otherwise associating with a broker-dealer firm. In 2017, Braeger incorporated an entity known as Blue Star Automotive Fund (“Blue Star”), in which he sold limited partnership shares to twenty-seven investors who gave him over $5.4 million for those shares. Braeger represented to those investors that those funds would primarily be used to fund an automobile dealership. Although Braeger provided approximately half of the money to the dealership, he misappropriated more than $2.5 million of investor funds in ways contrary to his representations. He spent his victims’ money on his own living expenses, including, but not limited to the purchase of several luxury vehicles and personal legal fees. Braeger also used his victims’ money to purchase the Silver Spring House Restaurant in Glendale, sponsor a NASCAR driver, and buy cryptocurrency. In addition to the Blue Star Scheme, Braeger also stole $100,000 from an investor as part of a venture he called IEF, which Braeger claimed would be used to fund litigation related to a Ugandan Energy company. Instead, Braeger misappropriated most of that money for his own personal use.
At the sentencing hearing, U.S. District Judge Lynn Adelman focused on the pain and suffering Braeger caused to his victims and noted that Braeger’s crime called for a significant period of incarceration because Braeger was motivated by “greed and self-aggrandizement.” In addition to the 24-month period of incarceration, Braeger was ordered to pay restitution to his victims in the amount of $2,535,103.19.
“Mr. Braeger, who held no other job and earned no other income during the relevant period, used his background and connections to steal millions of dollars from over two dozen victims,” said U.S. Attorney Haanstad. “Braeger also added insult to the extensive financial injuries he caused, seeking to intimidate or bully some victims even after his scheme began unraveling. I commend all involved in seeking to hold Mr. Braeger accountable for his actions and for pursuing justice for his victims.”
“Mr. Braeger was brought to justice for engaging in a fraudulent scheme that duped investors and caused them losses of over $2.5 million, while he selfishly used the fraudulently obtained money to fund his own personal living expenses,” said Special Agent in Charge Vincent R. Zehme, of the Federal Deposit Insurance Corporation Office of Inspector General Chicago Region. “The FDIC OIG will continue to work closely with our law enforcement partners to investigate and hold accountable those who orchestrate such schemes that harm consumers and undermine the integrity of our Nation’s financial system.”
The case was referred to the U.S. Attorney’s Office by the Wisconsin Department of Financial Institutions. It was investigated by the Federal Deposit Insurance Corporation Office of the Inspector General and prosecuted by Assistant United States Attorney Julie F. Stewart.
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Former Restaurant Owner Indicted for Arson and Related ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 17, 2024, a federal grand jury returned a four-count indictment against Arletta Allen (age 43) of Fond du Lac, Wisconsin. The indictment charges Allen with arson of a commercial building in violation of Title 18, United States Code, Section 844(i) (Count One); wire fraud and attempted wire fraud in violation of Title 18, United States Code, Sections 1343 and 1349 (Count Two); arson in connection with a federal felony in violation of Title 18, United States Code, Section 844(h)(Count Three); and making false statements to law enforcement, in violation of Title 18, United States Code, Section 1001(a)(Count Four).
According to the indictment, on or about October 10, 2021, Allen maliciously damaged by fire a restaurant known as “A Family Affair Soulfood Kitchen” located at 417 S. Main Street in Fond du Lac, Wisconsin. The indictment further alleges that Allen executed a scheme to defraud Germantown Mutual Insurance Company by setting fire to the restaurant and signing a sworn proof of loss claim seeking insurance proceeds for losses caused by the fire, while falsely representing that she did not cause or procure the fire. The indictment also alleges that Allen lied to law enforcement officers on multiple occasions about her activities and location prior to the fire.
If convicted, Allen faces the following penalties: Count One, mandatory minimum of 5 years’ and up to 20 years’ imprisonment; Count Two, up to 20 years’ imprisonment; Count Three, mandatory minimum 10 years’ imprisonment which must run consecutive to any other sentence; and Count Four, up to 5 years’ imprisonment.
The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wisconsin Department of Justice, Division of Criminal Investigations (DCI). It is being prosecuted by Assistant United States Attorneys Kelly B. Watzka and Porchia S. Lewand.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government must prove her guilty of each offense beyond a reasonable doubt.
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University Club of Milwaukee Agrees to Pay over $1 Million to Resolve Claim that It Wrongfully Obtained Paycheck Protection Program LoanRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that the University Club of Milwaukee has agreed to pay $1,003,993.86 to settle claims that the club improperly obtained a loan through the Paycheck Protection Program (“PPP”) administered by the United States Small Business Administration (“SBA”).
The PPP loan program, enacted in March 2020, provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The program allowed eligible businesses and non-profits to receive loans guaranteed by the federal government and, if the borrower spent the funds on qualified expenses, the federal government would repay the loan on the borrower’s behalf.
Congress directed the SBA to guarantee PPP loans “under the same terms, conditions, and processes” as ordinary small business loans administered by the agency. 15 U.S.C. § 636(a)(36)(B). With respect to loan eligibility, Congress expressly endorsed the SBA’s regulation explaining what entities would be ineligible for loans. 15 U.S.C. § 636(a)(37)(A)(iv)(III)(aa). For decades, this regulation has explained that “[p]rivate clubs and businesses which limit the number of memberships for reasons other than capacity” are not eligible for loans through the SBA. 13 C.F.R. § 120.110(i).
The University Club of Milwaukee operates a private country club and dining facilities, which are not open to the general public. According to the government, at the time the University Club of Milwaukee applied for a PPP loan and for loan forgiveness, the club limited its membership for reasons other than capacity and, therefore, was ineligible to participate in the PPP.
“The Paycheck Protection Program was an important but limited resource made available by Congress to assist small businesses around the country suffering the financial impacts of the COVID-19 pandemic,” said United States Attorney Haanstad. “But in making this resource available, Congress made a legislative determination that public funds would not be provided to private clubs that restricted their membership for reasons other than capacity. This settlement represents the continued efforts of the Small Business Administration and the Department of Justice to enforce Congress’s legislative determination and protect the public fisc.”
Assistant United States Attorney Aaron R. Wegrzyn represented the government in connection with this matter, in coordination with Kandace Zelaya in the SBA’s Office of Litigation and Office of General Counsel. While the settlement resolves the government’s allegations against the University Club of Milwaukee with respect to its PPP loan, the club does not admit liability and no court has made any determination as to liability.
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Oak Creek company to pay over $2.3 million to resolve allegations it submitted false claims to obtain a Paycheck Protection Program LoanRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 3, 2024, Zund America, Inc., a corporation located in Oak Creek, Wisconsin, agreed to pay $2,300,825 to resolve allegations that it violated the False Claims Act by submitting false claims to obtain a Paycheck Protection Program (PPP) loan for which it was not eligible.
Congress created the PPP in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible businesses could receive loans guaranteed by the SBA and, if the business spent the loan proceeds on qualified expenses, SBA would repay the loan and any accrued interest on the borrower’s behalf. In December 2020, Congress authorized certain borrowers who received an earlier PPP loan to obtain an additional “second-draw” loan. The second-draw loan program included additional eligibility requirements. Under the second-draw loan rules, for a company to be deemed a small business eligible for a second loan, the company, together with any corporate affiliates, had to employee 300 or few individuals.
Zund America is owned by a Swiss holding company, Zund Holding AG. Through common ownership and management, Zund America is affiliated with 19 other Zund entities that operate across the globe. In February 2021, Zund America received a second-draw PPP loan, which the SBA later repaid. The United States alleges that Zund America was not eligible for this loan because Zund America and its affiliates had more than 300 employees.
“Congress created the PPP to help small businesses and their employees survive the COVID-19 pandemic,” said U.S. Attorney Haanstad. “To make funds available as quickly as possible and save jobs, Congress and the SBA trusted companies to certify that they complied with the eligibility rules. Unfortunately, Zund America did not fulfill its obligations, and instead submitted false information to obtain its second-draw loan. This settlement requires Zund America to repay the SBA plus a substantial penalty.”
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, SBA’s Office of Inspector General and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties,” said SBA General Counsel Therese Meers.
The government’s investigation resulted from a whistleblower complaint filed under the qui tam provisions of the False Claims Act. The whistleblower will receive a share of the settlement. This case is pending as United States ex rel. GNGH 2, Inc. v. Zund America, Inc., No. 24-cv-0661.
Together with the SBA, Assistant United States Attorney Michael Carter represented the government in this matter. The settlement agreement states allegations only; Zund America, Inc., does not admit liability for the allegations.
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Milwaukee Woman Sentenced to 19 Years in Federal Prison for Sex Trafficking of Multiple Victims by Force, Fraud, and CoercionRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced on December 11, 2024, that Colette A. Mahan (age 41), a.k.a. “Pimpin’ Amanda,” of Milwaukee, Wisconsin, had been sentenced to 19 years in federal prison for sex trafficking.
On May 23, 2024, Mahan entered a guilty plea to one count of sex trafficking by force, fraud, and coercion, in violation of Title 18, United States Code, Sections 1591(a)(1) & 1591(b)(1). According to court records and filings in the case, Mahan trafficked numerous female victims, including minors as young as 14 years old, over a period of at least 17 years using a combination of false promises, threats, and extreme physical violence. Filings also show that Mahan made her victims solicit sex dates at strip clubs, hotels, bars, casinos, and street tracks across Wisconsin, Illinois, Iowa, Minnesota, Indiana, Missouri, North Dakota, South Dakota, Kentucky, Florida, and Nevada, and she demanded that they give her everything they earned. Though Mahan had many prior arrests, this case marks her first felony conviction and prison sentence.
At the sentencing hearing, United States District Court Judge Brett H. Ludwig explained that Mahan’s crimes were incredibly serious, noting that Mahan knew or should have known the devastating impact her actions would have on her victims because she herself had been victimized in a similar way during her teenage years. Judge Ludwig described how Mahan beat young women and girls into selling their bodies and how their suffering financed luxuries for Mahan, including a Porsche. Judge Ludwig also emphasized that sex trafficking has been particularly problematic in Milwaukee and that a long prison sentence was appropriate to deter others from engaging in this type of conduct.
“For many years, Ms. Mahan sought to dehumanize others for her own financial benefit,” stated U.S. Attorney Haanstad. “I commend the courage and resilience shown by the victims when sharing the details of the abuse they suffered at Ms. Mahan’s hands. The 19-year sentence reflects their courage as well as the tireless and collaborative work by the FBI, the Milwaukee Police Department, and federal prosecutors in pursing justice in this case.”
“The women and men of the FBI work tirelessly to stop individuals like Colette A. Mahan from exploiting and harming victims,” said Special Agent in Charge Michael Hensle of the FBI Milwaukee Field Office. “The sentence handed down sends a message to individuals who prey upon vulnerable women. The FBI, along with our law enforcement partners, is dedicated to bringing these individuals to justice.”
This case was investigated by the Federal Bureau of Investigation and the Milwaukee Police Department. It was prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Erica J. Lounsberry.
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Registered Sex Offender from Minnesota Indicted for Attempting to Sexually Exploit a 12-Year-Old ChildRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 19, 2024, a federal grand jury returned a two-count indictment against Matthew W. Tolkinen (age: 53) of Wadena, Minnesota.
According to court documents, Tolkinen engaged in a conversation with an undercover law enforcement officer from the Outagamie County Sheriff’s Office who was posing online as a 12-year-old girl. During the conversation, Tolkinen repeatedly described his desire to have sex with the child, whom he believed was in school. In the conversation, Tolkinen also described his plan in graphic detail, requested naked photographs of the child, represented that the child could not get pregnant, and warned the child that the planned sexual activity was going to be painful.
Tolkinen was arrested in Minnesota on November 20, 2024. Court records indicate that agents searched Tolkinen’s phone and discovered the conversations he had with the undercover officer. They also observed that on the day Tolkinen was indicted by the grand jury, he searched for driving directions to Appleton, Wisconsin.
Tolkinen appeared before Senior District Judge William C. Griesbach on December 5, 2024, and was ordered detained. His jury trial is scheduled to begin on February 10, 2025.
Tolkinen is a registered sex offender based on a 2018 conviction for soliciting a child to engage in sexual conduct in Ramsey County, Minnesota.
Tolkinen now faces charges alleging that he attempted to sexually exploit a minor and persuade that minor to engage in sexually explicit conduct, contrary to Title 18, United States Code, Section 2251(a), and committing a felony offense involving a minor as an individual required to register as a sex offender, contrary to Title 18, United States Code, Section 2260A. If convicted of the charges, Tolkinen faces a mandatory minimum of 25 years in federal prison.
This case was investigated by the Outagamie County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Alexander E. Duros.
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.
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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Milwaukee Man Sentenced to Prison for Smuggling over 200 Machinegun Conversion Devices and Felon in Possession of FirearmRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 5, 2024, Demario Robinson (age: 22) was sentenced to 88 months (7 years, 4 months) in prison for smuggling machinegun conversion devices (MCDs) and possession of a firearm by a felon.
The court record reflects that between July 11, 2022, and June 5, 2023, Robinson bought and caused to be imported at least 202 MCDs, commonly referred to as “switches.” This quantity of MCDs, of which approximately 59 were recovered, represents one of the largest MCD distribution schemes uncovered in Wisconsin to date. MCDs convert ordinary pistols into fully automatic weapons, making the weapons more lethal, more difficult to control, and illegal. Robinson then sold these MCDs to others in the greater Milwaukee area.
According to Milwaukee Police Department records, fully automatic gunfire incidents in the City of Milwaukee have substantially increased between 2020 and 2023:
Robinson was arrested on June 20, 2023, after U.S. Customs and Border Patrol agents intercepted a package sent from China containing 47 MCDs that Robinson arranged to have delivered to his residence in Milwaukee. A search warrant was then executed at Robinson’s residence during which law enforcement recovered a stolen Glock 19 handgun containing a fully loaded 30 round extended magazine and an MCD, thus constituting an illegal machine gun. A second package intended for delivery to Robinson which contained an additional 10 MCD’s was also intercepted by law enforcement. Additionally, Robinson’s prior felony drug conviction at the time precluded him from possessing any firearm.
At sentencing, United States District Judge Joseph P. Stadtmueller noted that Robinson’s sale of MCDs in Milwaukee increased the danger posed by firearms in our community. He further advised that the sentence should serve to deter Robinson and others in the community from selling and possessing these illegal devices, including those with relatively minor criminal records.
“The dangerousness and lethality of ‘switches’ and similar conversion devices in our community cannot be overstated,” said U.S. Attorney Haanstad. “The United States Attorney’s Office is committed to prosecuting offenders involved in the importation and distribution of these devices. Along with our federal, state, and local partners, we will dedicate whatever resources are needed to stop the spread of these deadly and illegal devices.”
"Machinegun conversion devices pose a real danger to our communities. One pull of the trigger is no longer just one bullet, it could be 15 rounds in one second,” said FBI Milwaukee Special Agent in Charge Michael Hensle. “The FBI, in collaboration with our local, state and federal law enforcement partners is unwavering in its commitment to disrupting the illegal use of these devices and holding individuals like Mr. Robinson accountable. The safety and well-being of Wisconsin residents remains our highest priority.”
“The sentencing of Robinson underscores the grave consequences of smuggling machinegun conversion devices and possessing a firearm as a felon. MCDs are extremely dangerous weapons that significantly increase firearms’ lethality and potential for harm. The illegal trafficking and possession of such devices pose a severe threat to public safety and the well-being of our communities,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “This case serves as a stark reminder that law enforcement agencies will relentlessly pursue those who endanger our citizens through their reckless and unlawful behavior."
“This investigation demonstrates the positive impact the Milwaukee Police Department can have through collaboration with our law enforcement partners. Working together allows us to effectively utilize intelligence and resources to help keep our community safe”, said Milwaukee Police Chief Jeffrey Norman.
The case was investigated by Homeland Security Investigations, the Federal Bureau of Investigation – Milwaukee Area Safe Streets Task Force, and the Milwaukee Police Department – Special Investigations Division. It was prosecuted by Assistant United States Attorneys Bill Roach and Mike Schindhelm.
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Wisconsin Man Pleads Guilty to Failing to File Employment Tax Returns and to Failing to Pay Employment TaxesRead the Press Release
United States Attorney Gregory J. Haanstad announced that on November 19, 2024, U.S. District Judge Lynn Adelman accepted the guilty plea of William S. Gallagher to one count of failure to truthfully account for and pay over employment taxes to the Internal Revenue Service (IRS), in violation of 26 U.S.C. § 7202.
On October 22, 2024, a federal grand jury returned an indictment charging Gallagher with twelve counts of failure to truthfully account for and pay over employment taxes for each quarter in tax years 2018 through 2020. According to the indictment and plea agreement, Gallagher was the owner and manager of a swimming pool service and retail company in Lake Geneva, Wisconsin.
The company, H2O Wisconsin, LLC, or Poolblu, employed approximately 15 workers. Gallagher was required to withhold federal income taxes, Social Security taxes, and Medicare taxes from his employees’ wages, hold those amounts in trust, and pay them over to the IRS. Additionally, Gallagher was responsible for filing quarterly tax returns (Forms 941) reporting these amounts to the IRS.
Gallagher was further required to pay the employer’s matching portion of Social Security and Medicare taxes. For each quarter in tax years 2018 through 2020, Gallagher willfully failed to truthfully account for and pay over these taxes. Dating back to 2014, the loss to the IRS totaled over $606,000.
Sentencing is scheduled for January 30, 2025, at 10:00 a.m., before Judge Adelman. At sentencing, Gallagher faces up to five years in prison and up to a $250,000 fine. He also faces up to three years of supervised release after completing any period of imprisonment.
The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney John P. Scully is prosecuting.
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San Antonio Man Sentenced to 20 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Gregory J. Haanstad announced that on November 19, 2024, Bobby E. Matjeka (age: 43) of San Antonio, Texas, was sentenced to 240 months in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, Matjeka engaged online with an Appleton woman and encouraged her to send him sexually explicit images of her then 8-year-old daughter. For approximately one year, Matjeka engaged in online exchanges centered around the rape and sexual abuse of the woman’s children. He continued to receive images of the child and made plans to install hidden cameras in her home to remotely view the abuse.
Judge Griesbach noted that this offense was “deplorable and despicable” in nature. The judge also noted the profound effects that the defendant’s actions imposed upon the victims. Ultimately, the judge determined that a sentence of 240 months in federal prison was a fair and just sentence reflective of the severity of the crime and consistent with the sentence previously received by the victims’ mother. Upon the completion of his federal prison sentence, the defendant will spend 15 years on supervised release. He will also have to register as a sex offender under state and federal law.
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, Division of Criminal Investigations, the Appleton Police Department, and with the assistance of the Department of Homeland Security’s Milwaukee and San Antonio Field Offices.
It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Justice Department to Monitor Compliance in MilwaukeeRead the Press Release
United States Attorney Gregory J. Haanstad announced on November 1, 2024, that the Justice Department will monitor compliance with federal voting rights laws at several polling locations in the Milwaukee area for the November 5 general election.
The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The Department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities across the country.
The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.
The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act, and Civil Rights Acts. The Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin, or religion.
On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the Department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931.
The United States Attorney’s Office will also be available to receive complaints on election day at 414-297-4103.
Individuals with questions or complaints related to the ADA may call the Department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the Department’s ADA website at www.ada.gov.
Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence, or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the Department after local authorities have been contacted.
More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC using the complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
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Federal Judge Finds Milwaukee Man Guilty of Sex Trafficking and ArsonRead the Press Release
United States Attorney Gregory J. Haanstad announced that on October 28, 2024, United States District Court Judge Lynn Adelman found Bobby McNeil (age 45) guilty of all five counts with which he was charged, which were Sex Trafficking by Force, Fraud, or Coercion; Arson in Furtherance of a Federal Felony; Arson of a Building/Rental Property; Interstate Transportation for the Purpose of Prostitution; and Unlawful Possession of a Firearm by a Felon. Judge Adelman announced the verdict after a two-day bench trial that concluded on October 16, 2024.
The evidence presented at trial established that between 2021 and 2022, McNeil used force, threats of force, fraud, and coercion to compel an adult female victim to engage in commercial sex acts on the south side of Milwaukee. He also induced the victim to travel from Florida back to Wisconsin to engage in further commercial sex acts. McNeil also committed a retaliatory act of arson by throwing a Molotov cocktail into the home of another adult who attempted to help the female victim get away from McNeil. In rendering his verdict, Judge Adelman pointed to numerous text messages, Facebook messages, and recorded messages the defendant made and sent that corroborated the trafficking victim’s testimony and reflected the defendant’s intentions and violence.
McNeil’s sentencing hearing is scheduled for February 4, 2025, before Judge Adelman. McNeil faces a maximum life term of imprisonment and a mandatory minimum of 25 years of imprisonment.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case, with the assistance of the Federal Bureau of Investigation and Milwaukee Police Department. Assistant United States Attorneys Abbey M. Marzick and Porchia S. Lewand prosecuted the case.
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Former Waukesha County Sheriff’s Office Correctional Lieutenant Sentenced to Four Months’ ImprisonmentRead the Press Release
United States Attorney Gregory J. Haanstad announced that on October 24, 2024, Johanna Grace (age: 34) was sentenced to four months’ imprisonment, followed by one year of supervised release, after providing marijuana and a cellular telephone to an inmate of the Waukesha County Jail, in violation of Title 18, United States Code, Sections 2(a), 1791(a)(1), 1791(b)(3), and 1791(b)(4).
Publicly filed documents reflect that when Grace committed this offense, she was serving as a Correctional Lieutenant with the Waukesha County Sheriff’s Office. On multiple occasions, Grace coordinated with associates outside the Waukesha County Jail to bring contraband inside the facility. When a tipster outside the jail alerted authorities to Grace’s misconduct, Grace shared internal law enforcement reports with her associates, who then confronted the tipster. Grace acknowledged that as part of her offense of conviction, she obstructed justice.
Before imposing sentence, United States District Judge J.P. Stadtmueller found that this was a “deadly serious matter.” Judge Stadtmueller explained that as a supervisor at the Waukesha County Jail, Grace was entrusted to preserve the rule of law. Judge Stadtmueller further noted that a sentence of imprisonment was required to deter others. Judge Stadtmueller also explained that the defendant’s request for a probationary sentence was not appropriate, because a non-custodial sentence would do “no service to the rule of law.”
“Today’s sentence is the direct result of an individual abusing her authority and violating the trust of the residents she was entrusted to serve and protect,” said U.S. Attorney Haanstad. “I commend the courage of the tipster to come forward and the collaborative efforts of all involved in pursuing this investigation and prosecution.”
“It’s incomprehensible that Ms. Grace used her position to smuggle contraband into the jail," said FBI Milwaukee Special Agent in Charge Michael E. Hensle. “Today’s sentence reinforces the FBI’s commitment along with our local, state and federal partners to keep Wisconsin’s county jail system safe and secure while holding those accountable who work within the criminal justice system.”
“Correctional officers are not above the law, and this sentence illustrates the importance of investigating corrupt officials who compromise the safety within our jails,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “Working in coordination with our local and federal law enforcement partners ensures these cases are investigated and prosecuted as appropriate.”
This matter was investigated by the Waukesha County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Katherine Halopka-Ivery and Kevin Knight.
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Neopit Man Indicted for Assault with Intent to Murder, Burglary, and Domestic Violence Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 22, 2024, a federal grand jury returned a three-count indictment charging Nee Gee J. Cloud, a 31-year-old from Neopit, Wisconsin, with intent to murder, burglary, and a domestic violence assault on the Menominee Indian Reservation.
The indictment charged Cloud as follows:
COUNT
DATE
CHARGE
PENALTY
One
On or about September 20, 2024Assault with Intent to Murder, 18 U.S.C. §§ 113(a)(1) and 1153(a)Up to 20 years in prison, up to $250,000 fineTwo
On or about September 20, 2024Burglary, 18 U.S.C. § 1153(a) and Wis. Stat. § 943.10(2)(d)Up to 10 years in prison, up to $250,000 fine.Three
On or about September 20, 2024Domestic Assault by Habitual Offender, 18 U.S.C. § 117Up to 10 years in prison, up to $250,000 fine.Cloud also faces terms of supervised release and special assessments of $100 per count if convicted.
According to filed court documents, on or about September 20, 2024, while at a location on the Menominee Indian Reservation, Cloud allegedly assaulted a woman with whom he was living. Cloud allegedly stomped on the woman’s head and neck, rendered her unconscious, punched her repeatedly in the head and face, kicked her torso, and slammed her face into the floor. All of this resulted in lacerations and facial fractures to the woman, who was hospitalized for nearly a month. Court documents allege some of Cloud’s actions were captured by an in-home camera system.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. Assistant United States Attorneys Andrew J. Maier and Alexander E. Duros will prosecute the case in U.S. District Court in Green Bay.
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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Milwaukee Woman Indicted for Multimillion Dollar Health Care Fraud and Kickback SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 16, 2024, a federal grand jury indicted Lakia Jackson (age: 34) for perpetrating a $3.7 million health care fraud and kickback scheme that involved Jackson lying about having provided prenatal care coordination services and childcare coordination services to at-risk and low-income pregnant women and new mothers in Milwaukee.
According to the indictment, from June 2020 through December 2021, Jackson owned We Care Services, which was a Prenatal Care Coordination (PNCC) agency operating in Milwaukee. PNCC agencies are reimbursed by Medicaid when they provide services intended to address Wisconsin’s historically high rate of infant mortality among at-risk populations. Specifically, PNCC services are supposed to ensure that women at high risk are identified as early as possible in their pregnancies, receive psychosocial support, prenatal care services, and health and nutrition education, and are referred to available community services that they need to help them achieve positive birth and parenting outcomes.
The indictment alleges that Jackson offered and provided kickbacks to induce women to sign up for prenatal care coordination services with We Care Services, and then allegedly submitted millions of dollars of fraudulent claims for services never actually provided to those women. Jackson also allegedly submitted claims for services she contended were provided to her clients before she or anyone from her agency had ever met the client.
The indictment charges Jackson with multiple counts of Health Care Fraud and False Statements Relating to Health Care Matters, in violation of 18 U.S.C. § 1347 and 18 U.S.C. § 1035, violations of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b, Money Laundering, in violation of 18 U.S.C. § 1957, and Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A. If convicted, Jackson faces a mandatory sentence of two years in prison for each count of Aggravated Identity Theft, up to twenty years in prison for each count of Health Care Fraud, up to ten years in prison for each count of Anti-Kickback Statute violations and Money Laundering, and up to five years in prison for each count of False Statements.
The Federal Bureau of Investigation and the Medicaid Fraud Control and Elder Abuse Unit of the Wisconsin Department of Justice investigated the case, which Assistant United States Attorneys Julie F. Stewart and Kate M. Biebel will prosecute.
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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U.s. Attorney Announces Election Day Program & District Election OfficerRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced today that Assistant United States Attorney (AUSA) Christopher J. Ladwig will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Ladwig has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Wisconsin, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Haanstad said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA Ladwig will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 414-297-4103.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. In the Eastern District of Wisconsin, the FBI can be reached at 414-276-4684, option 7.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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Antigo Man Indicted on Distribution and Receipt of Child Pornography ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 8, 2024, a federal grand jury issued an indictment alleging that Jacob D. Theisen (age: 34) of Antigo, Wisconsin, received and distributed child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(A).
According to the indictment, on or about January 20, 2023, Theisen is alleged to have distributed child pornography via the internet. The indictment further alleges that Theisen received child pornography via the internet on June 12, 2021. If convicted of either offense, Theisen faces a mandatory minimum sentence of five years’ imprisonment and up to 20 years of incarceration. He may also be fined up to $250,000 and would be required to register as a sex offender under state and federal law.
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 Antigo Police Department with the assistance of the Wisconsin Department of Justice, Division of Criminal Investigations. 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 his guilty beyond a reasonable doubt.
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Milwaukee lawyer sentenced to 16 months’ imprisonment for failure to pay taxesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 15, 2024, Eric E. Lenzen (44), was sentenced to 16 months in federal prison for willful failure to pay $2,462,705.50 in taxes. Lenzen previously pled guilty to two counts of misdemeanor failure to pay taxes.
According to court records, Lenzen, a Milwaukee attorney who worked as a partner at two prominent law firms, failed to pay income taxes between 2016 and 2021. Lenzen failed to pay the taxes he owed even though he was earning a lucrative salary and funding a lavish lifestyle that included spending hundreds of thousands of dollars on private plane travel, jewelry, and extensive home remodels, as well as golf clubs.
At the sentencing hearing, United States Magistrate Judge William E. Duffin described Lenzen’s conduct as “exceptionally aggravated.” Judge Duffin highlighted the many opportunities that Lenzen had been given to pay his debt to the government and the steps Lenzen instead took to “thwart the government’s attempts to recover” the taxes due. Judge Duffin explained that a sentence of incarceration was warranted, particularly given Lenzen’s status as an attorney, explaining that “when a crime is committed by an attorney, it undermines respect for the law and the legal profession.”
In addition to serving a 16-month term of imprisonment, Lenzen was ordered to pay $2,462,705.50 in restitution to the Internal Revenue Service, plus penalties and interest.
“Individuals who seek to line their own pockets and willfully fail to pay their taxes cause harm to every individual and business that plays by the rules,” said U.S. Attorney Haantsad. “I commend everyone involved in seeking to hold Mr. Lenzen accountable for his actions.”
“The sentencing of Eric Lenzen is a critical reminder that no one is above the law, including those who are entrusted to uphold it,” said Robert J. Kuszynski, Assistant Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Legal professionals hold a unique position in our society, and with that position comes an obligation to act with integrity and accountability. When attorneys neglect their duty to pay taxes, they not only violate the law but also undermine the very trust that forms the foundation of our legal system. It is imperative that all legal professionals adhere to their ethical obligations, not only to ensure their own accountability but also to reinforce the principles of justice and fairness that we rely on. IRS Criminal Investigation remains committed to enforcing the law and holding accountable those who fail to meet their legal and financial responsibilities.”
The case was investigated by the Internal Revenue Service and prosecuted by Assistant United States Attorney Julie F. Stewart.
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Tigerton Man Indicted for Shotgun Assault on a Postal CarrierRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 8, 2024, a federal grand jury issued an indictment alleging that Benjamin L. Joos (age: 43) of Tigerton, Wisconsin, assaulted a federal employee in violation of Title 18, United States Code, Sections 111(a) and 111(b).
According to the indictment, on or about September 24, 2024, Joos “knowingly and by means and use of a dangerous weapon, namely a shotgun, did forcibly assault, oppose, impede, intimidate, and interfere” with a female postal carrier while she was performing her official duties. If convicted of the offense, he faces up to 20 years’ imprisonment and a maximum $250,000 fine.
This case was investigated by the Shawano County Sheriff’s Office and the U.S. Postal Inspection Service. 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 his guilty beyond a reasonable doubt.
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New York Man Sentenced to 54 Months’ Imprisonment for Investment Fraud SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 10, 2024, Charles Lawrence (age 50) of Northpoint, New York, was sentenced to 54 months’ incarceration for committing an investment fraud scheme that resulted in a loss of over $4,000,000 to investors across the country and abroad.
Court records established the following: Lawrence was an investment advisor who held Series 7, 55, and 63 securities licenses from 1996 to 2006. By 2020, Lawrence became associated with various entities using the name “Landes,” including Landes Trust, Landes & Compagnie Trust Prive, and Landes Prive LLC. Lawrence used these entities to solicit money from unsuspecting victims by selling them an opportunity to join a “trading program” that he claimed would net them significant returns. As part of the scheme, Lawrence lured individuals into soliciting investments on his behalf by promising, and paying, “finder’s fees.” He used these unsuspecting “finders” to make himself, and the trading program, appear legitimate. Once a finder located a potential investor, Lawrence sent written communications and contracts that promised that the victims’ initial investment would be segregated in a separate account and would not be at any risk. Lawrence also promised that profits of 50% or more were possible and likely.
After the victims agreed to invest with Lawrence, Lawrence directed them to wire money into a bank account that he controlled. Lawrence also provided his victims a web portal to a Landes bank account on which they could see their initial investment, and provided frequent false updates about how their investment was performing. The web portal, Lawrence’s promises, and his updates were all fraudulent. Lawrence never invested any of the nearly $5,000,000 he received from his victims. Instead, Lawrence spent the money to fund an extravagant lifestyle that included lavish vacations, trips on private jets, spending hundreds of thousands at luxury retailers, and purchasing a 10.8-carat diamond Cartier ring.
In announcing his sentence, United States District Judge Lynn Adelman focused on the sophisticated nature of the scheme, noting that Lawrence’s victims took false comfort in the website where they could see their funds. Judge Adelman noted that Lawrence’s “lies were brazen,” that this was “a scam from the very beginning,” and that Lawrence was motivated solely by greed.
In addition to the 54-month period of incarceration, Lawrence was ordered to pay restitution to his victims in the amount of $4,030,263.51, and to forfeit the 10-carat Cartier ring and a Range Rover he purchased using $91,000 of his victims’ money.
“This scheme had a devastating impact on the victims taken in by Lawrence’s false promises and the elaborate measures he took to convince them that their investments were safe and lucrative,” said U.S. Attorney Haanstad. “I commend the excellent work of all involved in bringing Mr. Lawrence to justice for his actions.”
“The defendant in this case was held accountable for fraudulently obtaining millions of dollars through an investment scam and using those stolen funds to enrich himself, at the expense of unsuspecting victims. The defendant’s lulling activity included the creation of a website purporting to be that of a bank,” Special Agent in Charge Vince Zehme of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) said. “The FDIC OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who participate in fraudulent schemes and threaten to undermine the integrity of our Nation’s banking system.”
The case was referred to the U.S. Attorney’s Office by the Securities and Exchange Commission. It was investigated by the Federal Deposit Insurance Corporation Office of the Inspector General and prosecuted by Assistant United States Attorneys Julie F. Stewart and Farris Martini.
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Sex Offender Indicted on Production of Child Pornography ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 8, 2024, a federal grand jury issued an indictment alleging that Robert D. Nytes (age: 49) of Kossuth, Wisconsin, produced child pornography and that he did so as an individual required to register as a sex offender in violation of Title 18, United States Code, Sections 2251(a) and 2260A.
According to the indictment, on or about February 25, 2023, Nytes used and employed a minor child “to engage in sexually explicit conduct for the purpose of producing a visual depiction.” Nytes was previously convicted of Second Degree Sexual Assault of a Child on two separate occasions in Sheboygan County Circuit Court. If convicted of production of child pornography, Nytes faces a mandatory minimum sentence of 35 years’ imprisonment and up to a lifetime term of imprisonment. He also faces a mandatory consecutive ten year term of imprisonment if he is convicted of producing child pornography as a person who is required to register as sex offender. He may also be fined up to $250,000 and will continue to be required to register as a sex offender under state and federal law.
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 Manitowoc County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilty beyond a reasonable doubt.
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Wisconsin Man Charged with Filing False Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 8, 2024, a grand jury returned an indictment charging Vikram Naik with three counts of filing false individual income tax returns, in violation of 26 U.S.C. § 7206(1).
According to the indictment, Naik willfully made and subscribed, under penalties of perjury, individual income tax returns (Forms 1040) for the years 2017, 2018, and 2019. Naik had federal income tax withholding amounts that were substantially less than what he reported on each of the returns he filed with the Internal Revenue Service (“IRS”) and, as a result, he had taxable income and total tax owed greater than he reported. Those returns included over $300,000 in false withholding amounts.
If convicted, Naik faces up to three years in prison on each false return count. The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney John P. Scully will prosecute.
The public is cautioned that an indictment or criminal complaint is merely a charge, and the defendant is presumed innocent until and unless proven guilty.
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Fox Valley Man Sentenced to Ten years’ Imprisonment for Trafficking Methamphetamine in Neenah and Manitowoc and for Possessing a Firearm as a Previously Convicted FelonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on September 17, 2024, Senior United States District Judge William C. Griesbach sentenced Chee Neng Xiong (age: 36) to a total sentence of ten years’ imprisonment and ten years’ supervised release after Xiong pled guilty to Distributing Methamphetamine and Possessing a Firearm as a Previously Convicted Felon, in violation of Title 21, United States Code, Section 841(a)(1), and Title 18, United States Code, Section 922(g)(1).
According to court records, in March and April 2024, agents with the Lake Winnebago Area Metropolitan Enforcement Group and Manitowoc County Drug Task Force used informants to make four controlled buys of methamphetamine from Xiong. Agents arrested Xiong and searched his Neenah residence on May 16, 2024, finding a loaded 9-mm pistol and a box of ammunition. At the time of his drug trafficking and firearm possession, Xiong had prior felony convictions in Outagamie and Brown Counties for aggravated battery, soliciting a child to participate in gang activity, possessing amphetamine with intent to distribute, and bail jumping.
Xiong was on extended supervision in Wisconsin at the time of his offenses, which authorities revoked, returning him to state prison. Judge Griesbach ordered Xiong’s federal prison term to run consecutively to his state prison time.
The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group Drug Unit, the Manitowoc County Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wisconsin Department of Justice - Division of Criminal Investigation, and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Timothy Funnell.
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U.S. Attorney Gregory J. Haanstad Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, issued a public safety alert on October 7, 2024 advising the public to be vigilant to hurricane relief fraud in the wake of Hurricane Helene.
“When natural disasters strike, Americans are often are at their best, seeking to help their neighbors and fellow citizens in any way possible,” said United States Attorney Greg Haanstad. “However, these disasters also provide an opportunity for scam artists to take advantage of this compassion and generosity. Although the Eastern District of Wisconsin was not directly impacted by Hurricane Helene, residents of Wisconsin have shown themselves to be among the most thoughtful and caring in the country, often seeking to donate money to relief efforts. To help ensure that these donations reach their intended goal and do not get diverted to those who seek only to enrich themselves, I ask residents of the Eastern District to be mindful as they consider participating in solicited or unsolicited donation requests.”
On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods.
Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm.
Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
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Drug Distribution and Firearm Possession on Menominee Indian Reservation Leads to Eight-year Prison Sentence for Former Keshena ManRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 4, 2024, Anthony Brown, Jr. (age: 50), a former resident of Keshena on the Menominee Indian Reservation, received an eight-year federal prison sentence following convictions for possession with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking. Brown will also face five years of supervised release once he completes his sentence. The sentence, imposed by Senior United States District Judge William C. Griesbach, was the result of a guilty plea entered by the defendant on June 14, 2024.
According to court records, during the early morning hours of January 1, 2024, investigators with the Menominee Tribal Police Department observed the defendant in his vehicle as he engaged in a hand-to-hand drug transaction in the parking lot of a business on the Menominee Indian Reservation. After a brief interaction, the defendant was arrested and searched. Law enforcement recovered over 15 grams of cocaine and approximately $4400 in U.S. currency from his person and recovered a loaded .380 caliber semiautomatic handgun from the vehicle. The firearm had the defendant’s DNA on it.
Also, according to court records, law enforcement had an additional contact with Brown on January 15, 2024. Brown was arrested after being found passed out at the wheel of a car stopped in Keshena. Brown had cocaine on his person. Officers applied for and obtained a search warrant for the defendant’s residence, which led to the discovery of 380 grams of cocaine, paraphernalia associated with drug use and packaging, ammunition, a ledger containing names, amounts, and prices, and a Glock 21 .45 caliber handgun.
Investigators seized numerous items which the defendant agreed were proceeds or facilities of illegal drug activity, including $7000 in cash, a 2016 Chevrolet Corvette, a 1999 Porsche Boxster, a 2019 Ford F250 pickup, a 2014 Jeep Wrangler, and a 2017 Kawasaki sport bike style motorcycle. Investigators also seized 216 pairs of luxury shoes. These items were ordered forfeited as part of his sentence.
During the sentencing hearing, Judge Griesbach noted the seriousness of the crime and the need to deter those who might consider similar actions to protect the community from the destructive effects of controlled substance abuse. Judge Griesbach also observed the need to incapacitate the defendant for a lengthy period, particularly considering Brown’s previous convictions for drug dealing.
The Menomonee Tribal Police Department and the Federal Bureau of Investigations investigated the case as part of the Safe Trails Task Force (STTF) and the Native American Drug and Gang Initiative (NADGI). NADGI and STTF partner federal, tribal, state, and local law enforcement to combat drug trafficking and violent crime on the Menominee Indian Reservation. STTF members are deputized federal officers who identify and target for prosecution individuals who are involved in distribution of dangerous drugs on the Menominee Indian Reservation. Coordination of state resources through NADGI permits efficient communication and evidence processing, which are essential to swift and fair prosecution of offenders. Assistant United States Attorney Andrew J. Maier prosecuted the case.
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Fox Valley Man Sentenced to 10 Years’ Imprisonment for Trafficking Fentanyl and Possessing Firearms as Convicted Felon; Co-Defendant Sentenced to 15 Months’ Imprisonment for Straw Purchasing FirearmsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that October 1, 2024, Senior United States District Judge William C. Griesbach sentenced Joseph D. Charlesworth (age: 35) to a total sentence of ten years’ imprisonment and seven years’ supervised release after Charlesworth pled guilty to Possessing Fentanyl With Intent to Distribute and Possessing Firearms as a Previously Convicted Felon, in violation of Title 21, United States Code, Section 841(a)(1), and Title 18, United States Code, Sections 922(g)(1).
According to court records, in August 2023, agents with the Lake Winnebago Area Metro Drug Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) investigated Charlesworth for distributing fentanyl, possessing firearms as a convicted felon, and dealing firearms without a license. In August 2023, agents arrested Charlesworth on outstanding warrants during a traffic stop and found him in possession of fentanyl that he intended to distribute and a 9-mm pistol with a loaded magazine in his waistband. Charlesworth had been previously convicted of felonies, including distributing heroin. He also faces additional charges in state court for distributing fentanyl resulting in two overdose deaths. Those cases remain pending in Outagamie and Waupaca Counties.
Charlesworth obtained the 9-mm pistol from Tyler A. Lamers (age: 28), who bought it from a Fox Valley gun dealer at Charlesworth’s request in exchange for drugs. In April 2024, Lamers was convicted and sentenced by Judge Griesbach to 15 months’ imprisonment for Making False Statements to a Federally Licensed Firearms Dealer, in violation of Title 18, United States Code, Section 922(a)(6). Lamers bought the pistol by falsely claiming on the federal-background-check form that he was buying it for himself when in fact, he was buying it for Charlesworth, who was prohibited by state and federal law from possessing firearms as a convicted felon.
At sentencing, Judge Griesbach stressed that Charlesworth’s serious conduct, which involved potentially lethal drugs and possessing firearms and numerous rounds of ammunition as a previously convicted felon, required significant punishment and lengthy imprisonment to protect the public.
The case was investigated by the Lake Winnebago Area Metro Drug Unit and the ATF. The case was prosecuted by Assistant United States Attorney Timothy Funnell.
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Repeat Sex Offender Sentenced to 25 Years in Federal Prison for Attempted Sexual Exploitation of a ChildRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on September 30, 2024, Senior United States District Judge William C. Griesbach sentenced David J. Fuchs (age: 41), formerly of Janesville, Wisconsin, to 25 years in federal prison for attempting to sexually exploit a child.
According to court records, Fuchs engaged in a conversation with an undercover law enforcement officer from the Outagamie County Sheriff’s Office, who was posing online as a 12-year-old girl. During the conversation, Fuchs repeatedly described his desire to have sex with the child, sending multiple explicit photographs of himself and requesting explicit photographs from the undercover officer. Fuchs explained to the undercover officer, in explicit terms, how he intended to “teach” the young girl how to have sexual intercourse. During many of the sexually explicit conversations, Fuchs expressed his belief that the 12-year-old girl was in school. He planned to meet the girl at a travel plaza near Madison, Wisconsin, and he promised to bring her art supplies. On March 15, 2024, Fuchs arrived at a travel plaza with the intention of meeting a 12-year-old girl. The United States Marshals Service placed him under arrest.
Court records further indicate that the undercover officer from the Outagamie County Sheriff’s Office also talked to Fuchs using a different undercover identity. During this conversation, Fuchs offered to pay $100 to have sex with a 7-year-old girl. Fuchs was also talking to undercover officers from the Madison Police Department, the Manitowoc County Sheriff’s Office, and the Fox Valley Metro Police Department, who were posing online as underage girls.
Fuchs is a registered sex offender with prior convictions for attempted second degree sexual assault of a child and sexual assault of an intoxicated victim.
This case was investigated by the Outagamie County Sheriff’s Office, the Manitowoc County Sheriff’s Office, the Fox Valley Metro Police Department, and the Madison Police Department, with assistance from the Rock County Sheriff’s Office and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Alex Duros.
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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