Western District of Wisconsin
Press releases recorded for this federal judicial district.
Adams County Man Sentenced to 44 Months for Cocaine ConspiracyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Lonell Johnson, 27, Grand Marsh, Wisconsin, was sentenced on September 26 by U.S. District Judge William M. Conley to 44 months in federal prison for conspiracy to distribute cocaine. Jackson pleaded guilty to this charge on July 11, 2019.
Johnson was charged along with 11 other individuals for participating in a cocaine distribution scheme. Gregory Smith mailed packages containing cocaine from Houston, Texas, to Joseph Harper in Madison. Postal records from November 2017 to November 2018 showed 32 packages mailed from Smith to addresses in Wisconsin or Iowa associated with Harper. Based on witness statements and multiple cocaine seizures in the case, each of the packages contained between a half kilogram and one kilogram of cocaine.
Intercepted communications during the wiretap investigation revealed that Johnson was a highly trusted confidant of Harper and also a frequent cocaine customer. The investigation revealed that Johnson cooked the purchased cocaine into crack cocaine and sold it to multiple customers in the Grand Marsh area. In addition, on September 26, 2018, law enforcement agents observed Johnson bring a cocaine package mailed by Smith into Harper’s stash house in Madison.
In imposing the sentence, Judge Conley noted that Johnson has a lengthy criminal history including crimes involving guns and violence to women. Judge Conley was also concerned that it appeared Johnson was serving in an apprenticeship role to Harper and was becoming more involved in the conspiracy as time progressed.
Judge Conley previously sentenced Harper to 12 years in prison and Smith to 11 years in prison for their respective roles in the conspiracy. All 12 defendants charged in the case have entered guilty pleas.
The charge against Johnson is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
New Richmond Man Charged with Mortgage Fraud Scheme
Aston Wood, 55, New Richmond, Wisconsin, is charged with four counts related to an alleged mortgage fraud scheme. The indictment charges that Wood engaged in a scheme to defraud from September 2015 to July 2019. He is charged with one count of wire fraud, one count of mail fraud, one count of bankruptcy fraud, and one count of criminal contempt of court.
The indictment alleges that Wood represented to owners of homes in foreclosure that he could help them stay in their home by obtaining refinancing or modification of their mortgage, and that he instructed customers to make monthly mortgage payments towards a new or modified loan in an amount he selected, payable to him or to a limited liability company of which he was the sole member. The indictment alleges that rather than remit the payments to lenders as promised, Wood instead deposited the payments in bank accounts he controlled and used the funds for his own personal expenses.
The indictment further alleges that Wood offered to help some customers buy back their foreclosed property, and he continued to solicit and receive funds from customers or their families based on false representations that the funds would be used to repurchase the property. In addition, the indictment alleges that Wood told some customers to file for bankruptcy to stall foreclosure proceedings, which allowed Wood to delay detection and continue collecting monthly mortgage payments from customers.
The fourth count of the indictment alleges that Wood disobeyed a lawful order of a Court of the United States, an injunction issued on October 24, 2017, by U.S. Bankruptcy Judge Catherine J. Furay in the Western District of Wisconsin, which permanently enjoined Wood from soliciting customers, offering to perform, and performing services related to mortgage foreclosure and debt relief.
If convicted, Wood faces a maximum penalty of 20 years in federal prison on both the wire fraud charge and the mail fraud charge, and five years on the bankruptcy fraud charge. The criminal contempt of court charge has no maximum penalty; the penalty is at the Court’s discretion.
The charges against Wood are the result of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Housing Finance Agency – Office of Inspector General. The U.S. Attorney’s Office acknowledges the assistance of the Office of the U.S. Trustee. Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.
Clark County Man Charged with Methamphetamine Crime
Keith Strong, 49, Thorp, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on June 30, 2019.
If convicted, Strong faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Chippewa County Sheriff’s Office and the Drug Enforcement Administration. Special Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Middleton Man Charged with Distributing Cocaine
Cameron A. Bates, 30, Middleton, Wisconsin, is charged with five counts of distributing cocaine. The indictment alleges that he distributed cocaine on five occasions in July and August 2019.
If convicted, Bates faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department and the Dane County Narcotics Task Force, with the assistance of the Middleton Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Edgerton Felon Sentenced to 4 Years for Possessing FirearmsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that David Hill, 39, Edgerton, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to four years in federal prison for or unlawfully possessing five firearms as a convicted felon. Hill pleaded guilty to this charge on July 3, 2019. His prison term will be followed by a three-year period of supervised release.
On February 23, 2019, the Edgerton Police Department received an anonymous tip that Hill, a convicted felon, was in possession of firearms. At the time, Hill was on probation in Rock County, stemming from a 2013 conviction for possessing a firearm as a felon. An Edgerton police officer contacted Hill's probation agent, and together they found Hill's Facebook page. On January 19, 2019, Hill posted photos of himself on Facebook, while holding one firearm. Additional firearms were depicted behind him, hanging on a wall.
On February 25, 2019, Edgerton officers arrested Hill on a probation violation warrant, as he was parking at his place of employment. Hill got out of his car, carrying a canvas bag. Officers searched the bag incident to arrest and recovered a loaded Glock 9mm pistol, as well as two fully loaded 15-round magazines and additional boxes of ammunition. The firearms depicted in the Facebook photo were recovered from Hill’s basement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives laboratory determined one operated as a machine gun.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Hill was the result of an investigation conducted by the Edgerton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Producing and Distributing Child Pornography
Jeremy Schenck, 24, Madison, Wisconsin, is charged with three counts of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, and one count of distributing such a visual depiction. The indictment alleges that between September 2017 and August 2018, he produced three images of child pornography, and that on November 6, 2018, he used Kik messenger to send an image to a person in North Dakota.
If convicted, Schenck faces a mandatory minimum of 15 years and a maximum of 30 years on each production count. He faces a mandatory minimum of five years and a maximum of 20 years on the distribution count. The charges against him are the result of an investigation by the Madison Police Department and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
Madison Man Charged with Producing Child Pornography
Diorian Smith, 29, Madison, Wisconsin, is charged with two counts of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment alleges that between November 2017 and November 2018, he produced child pornography videos using a cell phone.
If convicted, Smith faces a mandatory minimum sentence of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
DeForest Man Charged with Receiving Child Pornography
Michael Hinze, 43, DeForest, Wisconsin, is charged with five counts of receiving visual depictions of a minor engaged in sexually explicit conduct. The indictment alleges that Hinze received the child pornography from September 28 to 30, 2018.
If convicted, Hinze faces a mandatory minimum sentence of five years and a maximum of 20 years in federal prison on each count. The charges against him are the result of an investigation by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation, and DeForest Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
The indictments against Smith, Schenck, and Hinze have been brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wisconsin Rapids Man Charged with Distributing Methamphetamine
David Shamont Lindsey, 35, Wisconsin Rapids, Wisconsin, is charged with distributing 50 grams or more of methamphetamine. The indictment alleges that he distributed the methamphetamine on May 7, 2019.
If convicted, Lindsey faces a mandatory minimum of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Central Wisconsin Drug Task Force, Wisconsin Rapids and Plover Police Departments, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
New Lisbon Man Charged with Methamphetamine Crime
Shane C. Evans, 43, New Lisbon, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on May 5, 2019.
If convicted, Evans faces a mandatory minimum sentence of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Rice Lake Police Department. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Madison Man Charged with Illegally Possessing Firearms
Sean P. Okray, 48, Madison, Wisconsin, is charged with being a felon in possession of firearms. The indictment alleges that on August 23, 2019, he possessed a 9mm pistol and a .380 caliber pistol.
If convicted, Okray faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department, Dane County Sheriff’s Office, U.S. Marshals Service, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita Rumbelow is handling the prosecution.
Janesville Man Charged with Gun Crimes
Deshawn Foreman, 24, Janesville, Wisconsin, is charged with being a felon in possession of ammunition and with being a felon in possession of a firearm. The indictment alleges that on July 24, 2019, he possessed .45 caliber ammunition, and that on July 25, 2019, he possessed a .45 caliber handgun.
If convicted, Foreman faces a maximum penalty of 10 years in federal prison on each charge. The charges against him are the result of an investigation by the Janesville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
The indictments against Okray and Foreman have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Jackson County Man Charged with Gun & Drug CrimesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Victor Williams, 40, Melrose, Wisconsin has been charged with being a felon in possession of a firearm and ammunition and with four counts of possessing controlled substances with the intent to distribute.
Williams was charged in a sealed indictment returned on August 28, 2019, by a federal grand jury sitting in Madison, Wisconsin. The indictment was unsealed on September 9, 2019, when Williams was arraigned in U.S. District Court in Madison. He is being detained in federal custody pending his trial, which is scheduled for February 3, 2020, before U.S. District Judge William M. Conley.
The indictment alleges that on July 2, 2019, Williams possessed a 9mm firearm and ammunition, and that he possessed cocaine, heroin, and marijuana with the intent to distribute. He is charged with two counts of possessing heroin with intent to distribute. In the second heroin count, the indictment alleges that he possessed heroin in a residence in Melrose.
If convicted, Williams faces a maximum penalty of 10 years in federal prison on the gun charge, and 20 years on each of the drug charges. The charges against Williams are the result of an investigation by the Tomah Police Department, West Central Metropolitan Enforcement Group, Jackson and Monroe County Sheriffs’ Offices, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Texas Man Sentenced to 10 Years for Traveling to Wisconsin for Illegal Sexual Activity with MinorRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that today Robert Hosler, 27, Austin, Texas, was sentenced by Chief U.S. District Judge James D. Peterson to 10 years in federal prison for interstate communications and travel to engage in illegal sexual activity and for possessing child pornography.
Hosler was convicted in May following a one-day court trial of two counts involving interstate communications and travel to engage in illegal sexual activity. He also pleaded guilty to possessing child pornography. In August 2018, Hosler responded to an advertisement posted on the Internet, which offered a 12-year-old child for sexual purposes. In response to the ad, he flew from Texas to Minnesota, rented a car and travelled to a prearranged meeting location in Eau Claire, Wisconsin, where he was arrested by law enforcement officers on September 6, 2018. The advertisement was posted by an undercover law enforcement officer.
At the time of his arrest, Hosler possessed a cell phone containing visual depictions of minors engaging in sexually explicit conduct; at least one of the depictions was of a minor who had not attained 12 years of age. In his response to the ad, Hosler expressed an interest in the possibility of videotaping his sexual contact with the minor. At the time of his arrest, recording equipment was found in his car.
Judge Peterson called the defendant selfish and self-deluded, whose primary concern was his own sexual interest. Peterson was concerned that Hosler was able to persuade himself that having sex with a 12-year-old was an OK thing to do.
The charges against Hosler are the result of an investigation by the Eau Claire Police Department, Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Department of Homeland Security, Central Texas Violent Crimes Task Force, Wisconsin State Patrol, and West Central Drug Task Force. Assistant U.S. Attorneys Elizabeth Altman and Diane Schlipper handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Madison Man Sentenced to over 11 Years for Bringing Minor Across State Lines for SexRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that today Bryan Rogers, 32, Madison, Wisconsin, was sentenced by U.S. District Judge William M. Conley to 135 months in federal prison for transporting a minor from Tennessee to Wisconsin for an illegal sexual purpose. This prison term will be followed by 15 years of supervised release. Rogers pleaded guilty to this offense on June 19, 2019.
Rogers came into contact with the minor in Tennessee through an online game. She told him that she was being sexually assaulted by an adult on a daily basis. Rogers persuaded the minor to make a video recording of an assault and send it to him, allegedly so he could provide evidence to law enforcement of the sexual assaults. The minor did not want to produce the video, but eventually acquiesced after Rogers said he would come rescue her after she made the video.
After the minor sent the video of her abuse to Rogers, he then traveled to Tennessee and returned to Wisconsin with the minor. The minor was reported missing on January 14, 2019. Subsequent investigation led to Rogers, and he was questioned on January 31, 2019. When questioned by law enforcement, he admitted he had been in contact with the victim online and that she had disclosed her sexual assault, but claimed he never met her in person, he did not go to Tennessee to get her, and he did not know her whereabouts. During a search of his home, officers found the victim in a closet. The victim told investigators Rogers had picked her up in Tennessee and brought her to Wisconsin, where he engaged in sexual intercourse with her. The victim stated that during her two weeks in Wisconsin, she hid in Rogers’ closet or in the trunk of his car while he was at work.
“The actions of this defendant are abhorrent. Instead of immediately contacting law enforcement, Rogers encouraged the child victim to produce a video of the sexual abuse, and after claiming to rescue her, he himself sexually assaulted her,” said U.S. Attorney Blader. “My office is committed to working with our federal, state, and local law enforcement partners to bring interstate child predators to justice.”
Judge Conley noted that Rogers targeted an extremely vulnerable victim and could have been a hero in this case by reporting the victim’s abuse to authorities; instead Rogers did not help her and further victimized her.
The charge against Rogers is the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Madison Police Department, Dane County Sheriff’s Office, and Monroe County (Tennessee) Sheriff’s Office. The prosecution of this case is being handled by Assistant U.S. Attorney Julie Pfluger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Asbestos Abatement Contractor Sentenced to 12 Years for Violating Clean Air ActRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Lloyd Robl, 49, New Richmond, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 12 years in prison, and three years of supervised release.
On June 20, 2019, Robl pleaded guilty to wire fraud and a Clean Air Act violation. Judge Conley imposed a 72-month sentence on each count to run consecutive to each other. The court also ordered the federal sentence to run consecutive to Robl’s current state prison sentence of 30 months for felony possession of methamphetamine.
Robl worked as a self-employed asbestos abatement contractor in Minnesota and Wisconsin. He performed asbestos removal and disposal services for residential and commercial clients in Minnesota and Wisconsin. Robl engaged in a scheme to defraud his clients by: (1) falsely advertising on Craigslist he was licensed, insured and bonded to do asbestos abatements; (2) failing to tell his clients that his Minnesota license had been revoked in July 2001 and he was permanently enjoined by the State of Minnesota from providing asbestos abatement services; and (3) providing his clients with falsified records including falsified insurance policy documents, falsified Minnesota asbestos abatement licenses, falsified air sampling results, and falsified asbestos waste manifests.
In addition, Robl violated the Clean Air Act by knowingly releasing asbestos into the ambient air which placed others in imminent danger of death and serious bodily harm. Robel improperly disposed of asbestos-laden waste by: (1) burning the materials in burn piles or in 55-gallon drums at his home; and (2) spreading the ashes collected in the 55-gallon burn barrels along the tree line and in the farm field behind his home.
At today’s sentencing, nine victims testified against Robl, including four individuals who were methamphetamine addicts hired by Robl to do asbestos removal jobs with Robl. These victims explained that Robl paid them with methamphetamine, and failed to properly train them or equip them with respirators, suits, or cleaning materials. Two customers testified that Robl provided them with licenses purporting to show he was licensed by the State of Minnesota to remove asbestos. Finally, two fire fighters with the New Richmond Fire Department testified about fires they put out at Robl’s home that involved out-of-control fires in burn pits and in 55-gallon drums. The fire fighters were never told there was asbestos waste in these fires.
Judge Conley noted at today’s sentencing that Robl “has a lack of any moral compass,” and that while Robl may have been a victim to his own methamphetamine addiction, “the gravity of his ways, and his use of other addicts, shows a depth of conduct not typically seen by other persons acting under the influence of drugs.” Judge Conley added that Robl exposed people to a cancer-causing substance without their knowledge or consent. “His willful conduct caused harm to society and the environment, and countless others who will never be known.”
After the sentencing, U.S. Attorney Blader said, “My office is committed to holding accountable those who endanger their fellow citizens by degrading the environment for their own selfish financial gains.”
Special Agent in Charge Jennifer Lynn of EPA’s Criminal Investigation Division added, “The defendant improperly handled asbestos, presenting a serious health threat to workers and the general public, and then tried to conceal evidence of the illegal acts. Today’s sentencing shows EPA’s commitment to prosecute those who try to undermine environmental laws and the protection of human health and the environment.”
The charges against Robl are the result of an investigation conducted by the U.S. Environmental Protection Agency- Criminal Investigation Division, the St. Croix County Sheriff’s Office, and the Wisconsin Department of Natural Resources Bureau of Law Enforcement. The prosecution of this case was handled by Assistant U.S. Attorney Daniel Graber.
Florida Man Sentenced to 52 Months for Credit Card Fraud SchemeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Janoy Garcia-Prieto, 31, Miami, Florida, was sentenced today by Chief U.S. District Judge James Peterson to 52 months in federal prison for conspiring to commit access device fraud and possession of 15 or more counterfeit access devices. Garcia-Prieto pleaded guilty to these charges on May 29, 2019.
On September 12, 2016, Garcia-Prieto, Pedro Lorenzo-Concepcion, and Jorge Consuegra-Rojas attempted to use a counterfeit credit card inside of a grocery store in Mauston, Wisconsin. The group’s vehicle, which had been rented by Garcia-Prieto in New Orleans, was stopped by law enforcement shortly after leaving the store. Officers searched the vehicle and found multiple false identification documents, counterfeit credit cards, multiple cellular telephones, two computers, three flash drives, six credit card skimmers, a credit card reader/writer, and 280 gift cards valued at over $23,000.
A forensic search of the flash drives and computers revealed a total of 1,679 stolen credit card numbers, some of which had been used to purchase the recovered gift cards. The investigation also revealed that Garcia-Prieto, Lorenzo-Concepcion, and Consuegra-Rojas used fraudulent credit cards to conduct dozens of purchases at Sam’s Club stores throughout Minnesota between September 9 and September 12, 2016, for a total of $20,279.78 in fraudulent charges.
At the sentencing hearing, Judge Peterson recognized that Garcia-Prieto played a critical role in a large-scale multi-state credit card fraud scheme and was actively involved in the scheme throughout the timeframe of the conspiracy. Judge Peterson also noted that Garcia-Prieto actively avoided arrest for over eight months after he was indicted by the federal grand jury in Madison on February 15, 2018. Judge Peterson also noted that Garcia-Prieto had a prior federal conviction in the Southern District of Florida for alien smuggling in 2011 and served a 30-month prison sentence.
In 2018, Judge Peterson sentenced Consuegra-Rojas to 60 months and Lorenzo-Concepcion to 46 months for their respective roles in the conspiracy.
The charges against Garcia-Prieto were a result of an investigation conducted by the Federal Bureau of Investigation, the Juneau County Sheriff’s Office, and the Mauston Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Armed Robber Sentenced to 6 YearsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Christian Killian, 33, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to six years in federal prison, for robbing a Pizza Hut restaurant while armed. Killian pleaded guilty to these charges on May 6, 2019. His prison term will be followed by a three-year period of supervised release.
On January 29, 2019, at approximately 11:50 a.m., Killian robbed a Pizza Hut restaurant on South Park Street, Madison. Killian demanded money from the clerk and when the clerk asked if he was joking, Killian opened his coat and held a revolver close to his chest. The clerk complied with the demand and gave Killian the money from the register.
Killian fled from the store and citizen witnesses reported that he ran into the Arboretum. Madison Police officers responded to the Arboretum and saw Killian in possession of a firearm, but Killian kept running and ignored commands to stop. Officers spent over two hours looking for Killian in frigid temperatures and below-zero wind chills. When they arrested Killian, officers recovered on his person a loaded speed loader (used to quickly load a revolver) and the stolen money.
At the time of the offense, Killian was out on bond in two felony drunk driving cases (5th or 6th), in Dane County.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Killian were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Second Member of Heroin-Fentanyl Conspiracy SentencedRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Arthur Jones, 41, Chicago, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to three years in federal prison for conspiring to distribute fentanyl-laced heroin in the Madison area from May through November of 2018. Jones and his co-conspirator Corey Douglas, 28, also of Chicago, both pleaded guilty to this charge on June 5, 2019. Douglas was sentenced by Judge Peterson on August 29 to a three-year prison sentence.
Jones maintained a residence in Fitchburg that police knew from their investigation was a stash house for drugs. Douglas was arrested by Dane County Narcotics Task Force officers on November 29, 2018, after he left the residence. At that time, Douglas possessed almost 12 grams of a mixture of heroin and fentanyl pre-packaged for street-level sale. A subsequent search of the residence maintained by Jones resulted in the discovery of more than 80 grams of additional heroin and fentanyl mixture.
In sentencing both Jones and Douglas, Judge Peterson weighed the defendants’ lack of criminal history against the danger associated with distributing a mixture of heroin and fentanyl throughout the community. Despite the lack of criminal history, Judge Peterson said the offense deserved a significant sentence because of the higher risk of an overdose death associated with a mixture of heroin and fentanyl, and the defendants’ repeated exploitation of others’ addiction.
The charges against Arthur Jones and Corey Douglas were the result of an investigation conducted by the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Robert Anderson.
Man Sentenced to 18 Years for Dane County RobberiesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Eric Clay, 28, Madison, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 18 years in federal prison for robbing two taxicab companies, one while armed, and a gas station. Clay pleaded guilty to these charges on June 5, 2019. His prison term will be followed by a five-year period of supervised release.
On December 14, 2018, Clay and two accomplices robbed a Union Cab driver in Madison and several hours later they robbed a BP gas station in Sun Prairie, Wisconsin. The next day, December 15, 2018, Clay and his accomplices robbed a Green Cab driver in Madison while armed.
During sentencing, Judge Peterson said that Clay is a dangerous person and a “lengthy prison sentence [was] warranted to protect the public.” U.S. Attorney Blader expressed concern for all of Clay’s victims, and stressed that his office will continue to aggressively prosecute violent criminal offenders.
The United States Attorney for the Western District of Wisconsin brought this case as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Clay were the result of an investigation conducted by the Madison and Sun Prairie Police Departments. The prosecution of the case has been handled by Special Assistant U.S. Attorney Chadwick M. Elgersma.
Man Sentenced for Possessing Methamphetamine for SaleRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Bounmee Thor, 33, Madison, Wisconsin, was sentenced on August 30 by U.S. District Judge William M. Conley to six years in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. Thor pleaded guilty to the charge on June 28, 2019.
In the fall of 2018, the West Central Drug Task Force received information from the Drug Enforcement Administration in Minnesota that Thor was bringing methamphetamine from St. Paul, Minnesota to an individual in Eau Claire, Wisconsin. In October 2018, law enforcement agents obtained a warrant to place a GPS tracker device on Thor’s vehicle and confirmed that Thor was making multiple trips between St. Paul and Eau Claire.
On November 27, 2018, Thor was a passenger in a vehicle stopped by Eau Claire Police for speeding. He initially provided a false name, but eventually admitted his real identity. He was arrested on an outstanding probation warrant and searched. The search revealed 58 grams of a substance that tested positive for methamphetamine. Thor provided a post-Miranda confession confirming that the majority of methamphetamine he possessed was for re-delivery to another person whom he would not identify. At sentencing, the Court found that Thor was responsible for possessing and distributing a total of 285 grams of methamphetamine in October and November 2018. At the time, Thor was on state probation for felony drug distribution.
Despite Thor’s unwillingness to name the person he was delivering methamphetamine to on November 27, 2018, law enforcement agents were able to identify that individual as Sylvia M. Erickson, of Eau Claire. On March 13, 2019, a federal grand jury in the Western District of Wisconsin returned a seven-count indictment against Erickson, charging various drug and gun-related offenses. On August 16, 2019, Erickson pleaded guilty to distributing 50 grams or more of methamphetamine in January 2019. Her sentencing is scheduled before Judge Conley on October 29, 2019.
The charges against Thor and Erickson were the result of an investigation conducted by the West Central Drug Task Force, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Eau Claire Police Department, with assistance from the Eau Claire County District Attorney’s Office. The prosecution of both cases has been handled by Assistant U.S. Attorney Meredith P. Duchemin.
Man Sentenced for Trafficking Heroin-Fentanyl Substances in Madison AreaRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Corey D. Douglas, 28, of Chicago was sentenced yesterday by U.S. District Judge James D. Peterson to three years in federal prison for conspiring to distribute fentanyl-laced heroin in the Madison area during May through November 2018. Douglas pleaded guilty to this charge on June 5, 2019.
Douglas was arrested by Dane County Narcotics Task Force officers on November 29, 2018, after he left a residence in Fitchburg that police knew from an investigation served as a stash house for co-conspirator Arthur Jones. Douglas was in possession of almost 12 grams of heroin-fentanyl substances pre-packaged for street-level sale at the time he was stopped, while more than 80 grams of additional heroin-fentanyl was found at the stash house in a search conducted by police. Douglas’s co-conspirator, Arthur Jones, is scheduled to be sentenced on September 10.
In sentencing Douglas, Judge Peterson said he was taking into account Douglas’s lack of prior criminal history weighed against the great dangerousness of the fentanyl-laced heroin that Douglas was distributing in the community. Peterson said the offense deserved a significant sentence despite Douglas’s relatively clean criminal history because it was a crime that Douglas engaged in on a repeated basis over the time of the conspiracy, “exploiting other people’s illness” in drug addiction.
The charges against Douglas and Jones were the result of an investigation conducted by the Dane County Narcotics Task Force and Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Robert Anderson.
Man Sentenced for Lying on Farm Loan ApplicationRead the Press Release
MADISON, WIS. -- Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Henry Berg, 42, formerly of Arcadia, Wisconsin, and currently of Geneva, Illinois, was sentenced today by U.S. District Judge James D. Peterson to one year and one day in federal prison for lying on a farm loan application. He was also sentenced to four years of supervised release following incarceration.
On May 2, 2019, Berg pleaded guilty to knowingly making a false statement for the purpose of influencing an Agricultural Credit Association, Badgerland Financial ACA (now Compeer Financial), in connection with a $650,000 agricultural loan.
Berg failed to disclose certain debts on his 2015 loan application, and also misrepresented to the bank that he had obtained crop insurance. Once he defaulted on the loan, Badgerland learned that Berg did not farm in 2015 and had disposed of the collateral he had pledged in connection with the loan. Badgerland also learned that Berg sub-leased his land and sold farming-related items to another farmer, for which the defendant received compensation that he did not disclose or turn over to Badgerland.
Because Berg’s Badgerland loan was partially guaranteed by the Department of Agriculture’s Farm Service Agency, the federal government suffered a loss of $596,036.30. Badgerland suffered a loss of $53,963.70. Berg was ordered to pay restitution.
The charge against Berg was the result of an investigation conducted by the U.S. Department of Agriculture Office of Inspector General and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.
Lodi Man Sentenced to 7 Years for Posting Child Pornography in Internet ChatroomRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Matthew Bulovsky, 25, Lodi, Wisconsin, was sentenced today by U.S. District Judge James Peterson to seven years in prison for distributing child pornography. This term of imprisonment is to be followed by 10 years of supervised release. Bulovsky pleaded guilty to this offense on May 15, 2019.
During the course of a child exploitation investigation, law enforcement officers determined that Bulovsky had posted numerous images and videos depicting children engaged in sexually explicit conduct into an internet chatroom.
At the time of the offense in this case, Bulovsky was out on bond in a state case that included allegations that he possessed child pornography. In sentencing the defendant, Judge Peterson noted that Bulovsky was a danger to the public because his compulsion to use child pornography was well engrained.
The charge against Bulovsky was the result of an investigation conducted by the FBI’s Child Exploitation and Human Trafficking Task Force, consisting of the Milwaukee Police Department, Milwaukee County Sheriff’s Department, Sheboygan County Sheriff’s Department, and West Allis Police Department; the Wisconsin Department of Justice Division of Criminal Investigation; and the Dane County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Member of 3-State Cocaine Conspiracy SentencedRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Diane Williams, 37, Dubuque, Iowa, was sentenced today by U.S. District Judge William M. Conley to five years in federal prison for conspiring to distribute 500 grams or more of cocaine. Williams pleaded guilty to this charge on June 10, 2019.
Williams was charged along with 11 other individuals for participating in a cocaine distribution scheme. The investigation revealed that Gregory Smith was mailing packages containing cocaine from Houston, Texas, to Joseph Harper in Madison. In total, postal records from November 2017 to November 2018 showed 32 packages mailed from Smith to addresses in Wisconsin or Iowa associated with Harper. Seven of the packages were mailed to Williams’ residence in Dubuque. Based on witness statements and multiple cocaine seizures in the case, agents learned that each of the packages contained between a half kilogram and one kilogram of cocaine.
On June 2, 2018, U.S. Postal Inspectors identified an incoming package mailed by Smith to Williams’ residence in Dubuque. After the delivery, officers saw Williams pick up the package and drive away with it. Officers stopped Williams a short time later and recovered 747 grams of cocaine inside the package mailed by Smith.
In imposing the sentence, Judge Conley noted that Williams had multiple prior felony convictions for drug trafficking. In addition to Smith and Harper, nine other defendants have pleaded guilty in the case. Earlier this month, Judge Conley sentenced Harper to 12 years in prison and Smith to 11 years in prison for their respective roles in the conspiracy.
The charge against Williams is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Robbing Portage Credit Union
Jeffrey J. Parker, 40, Madison, Wisconsin, is charged with robbing the Summit Credit Union in Portage, Wisconsin. The indictment alleges that Parker robbed the credit union on August 16, 2019.
If convicted, Parker faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Portage Police Department, Columbia County Sheriff’s Office, Maple Bluff Police Department, Wisconsin State Patrol, and Federal Bureau of Investigation. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
Madison Man Charged with Gun Crime
Rojae A. Crosse, 21, Madison, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a handgun and ammunition on April 29, 2019.
If convicted, Crosse faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison and Sun Prairie Police Departments and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Stevens Point Man Charged with Gun Crime
David Tejeda, 29, Stevens Point, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a rifle and ammunition on August 3, 2019.
If convicted, Tejeda faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Stevens Point Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
La Crosse County Man Charged with Gun Crime
Yovon C. Boyd, 34, West Salem, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a handgun and ammunition on October 16, 2018.
If convicted, Boyd faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
The indictments against Parker, Crosse, Tejeda, and Boyd have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Chicago Man Faces Heroin Charge
Ron McClellan, 41, Chicago, Illinois, is charged with possessing heroin with the intent to distribute. The indictment alleges that he possessed heroin on June 18, 2019.
If convicted, McClellan faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Dane County Narcotics Task Force. Assistant U.S. Attorney Aaron D. Wegner is handling the prosecution.
Indiana Man Charged with Producing Child Pornography & Traveling Interstate to Engage In Illicit Sexual Conduct
Adrian C. Gardiner, 40, Hammond, Indiana, is charged with two counts of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. He is also charged with two counts of traveling interstate for the purpose of engaging in illicit sexual conduct with a minor. The indictment alleges that he produced the child pornography on July 2 and August 13, 2019, and that he engaged in interstate travel to engage in illicit sexual conduct with a minor on August 5 and August 13, 2019.
If convicted, Gardiner faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each of the child pornography counts, and a maximum of 30 years on each of the interstate travel counts. The charges against him are the result of an investigation by the Cottage Grove Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and the Indiana State Police. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Texas Man Charged with Fraud Scheme
Emmanuel Odiah, also known as James Princeton and Ryan Greg Mornsen, 32, Dallas, Texas, is charged in a superseding indictment with one count of conspiring to commit money laundering with individuals not identified in the indictment. The indictment alleges that Odiah opened bank accounts in New York and Georgia in the names of James Princeton and Ryan Greg Mornsen using fraudulent United Kingdom passports, and that he and co-conspirators in Nigeria and Ghana created fake profiles on internet dating sites, gained victims’ trust, and then defrauded victims out of money in a variety of ways.
The indictment alleges that between May 3, 2017 and March 11, 2019, victims of this scheme in Wisconsin, Georgia, California, and Florida transferred money to the James Princeton and Ryan Greg Mornsen bank accounts controlled by Odiah. The indictment alleges that Odiah converted the fraud proceeds to cash or money orders through a series of ATM withdrawals and debit card transactions. The indictment further alleges that between August 8 and November 29, 2017, Odiah’s co-conspirators directed an individual to wire transfer $66,800 from a bank account in Woodruff, Wisconsin to an account in New York controlled by Odiah in the name of James Princeton.
Odiah was originally charged with this offense in a sealed indictment returned by the grand jury on June 26, 2019. He was arrested on July 10 in Texas and was brought to the Western District of Wisconsin. He is being held in custody pending his trial, which is set for December 9, 2019 before U.S. District Judge William M. Conley.
If convicted, Odiah faces a maximum penalty of 20 years in federal prison. The charge against Odiah is the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Vilas County Sheriff’s Office. Assistant U.S. Attorney Meredith P. Duchemin is handling the prosecution.
Serial Robber Sentenced to 7 YearsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Aaron Stanley, 35, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to seven years in federal prison for robbing four businesses, one while armed. Stanley pleaded guilty to these charges on June 17, 2019. His prison term will be followed by a four-year period of supervised release.
On December 24, 2018, Stanley robbed a Speedway gas station on Monona Drive, Monona, while armed. On December 30, 2018, he robbed a Mobil gas station on Cottage Grove Road, Madison. On January 9, 2019, he robbed another Speedway gas station on Lake Road, Windsor. Finally, on January 15, 2019, he robbed a Papa Murphy’s restaurant on East Broadway, Monona.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Stanley were the result of an investigation conducted by the Monona Police Department, the Madison Police Department and the Dane County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Felon Sentenced to 34 Months for Possessing Loaded HandgunRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Juan Longino, 46, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 34 months in federal prison, for unlawfully possessing a loaded firearm as a convicted felon. Longino pleaded guilty to this charge on April 23, 2019. His prison term will be followed by a three-year period of supervised release.
In December 2018 and January 2019, Longino drove a heroin dealer around Madison, while the dealer sold heroin to an undercover officer. A warrant was executed at Longino’s home on January 9, 2019, and officers recovered a loaded handgun under his mattress, as well as 5.6 grams of heroin. Longino claimed the heroin was for his personal use and that the firearm was for protection. Longino has an extensive criminal history that spans 26 years. His most recent felony conviction was obtained in 2014, for strangulation/suffocation.
Judge Peterson initially imposed a sentence of 42 months, but then credited Longino for the eight months he has spent in pretrial detention.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Longino was the result of an investigation conducted by the Dane County Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
McFarland Man Sentenced to 8 Years for Bank RobberiesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jason Yapp, 48, McFarland, Wisconsin, was sentenced yesterday by U.S. District Judge James D. Peterson to eight years in federal prison, for robbing two Madison banks. Yapp pleaded guilty to these charges on May 23, 2019. His prison term will be followed by a three-year term of supervised release.
Yapp was on supervision with the Wisconsin Department of Corrections at the time of these offenses. On September 17, 2018, at 5:16 a.m., Yapp was released from the Dane County Jail where he was being held on a supervision hold. At 9:34 a.m., he robbed the Associated Bank branch on West Broadway Avenue.
On September 21, 2018, Yapp attempted to rob the Associated Bank branch on Cottage Grove Road but fled when he thought the teller hit an alarm. Yapp drove away from the bank, crashing into the vehicle of another bank customer. He continued at a high rate of speed, eventually losing control and crashing. Yapp was taken into custody by Madison Police as he tried to get into an unrelated vehicle that was waiting in line at the intersection.
Yapp has a lengthy criminal history including convictions for burglary, attempted second degree sexual assault, armed robbery, and theft from a financial institution. In sentencing Yapp, Judge Peterson said that his main priority was protecting the public and commented on Yapp’s reckless flight from the second bank.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Yapp were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Corey C. Stephan.
Madison Man Sentenced to 6 Years for Cocaine ConspiracyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jamal Jackson, 40, Madison, Wisconsin, was sentenced on August 21 by U.S. District Judge William M. Conley to six years in prison for conspiring to distribute 500 grams or more of cocaine. Jackson pleaded guilty to this charge on June 11, 2019.
Jackson was charged along with 11 other individuals for participating in a cocaine distribution scheme. The investigation revealed that Gregory Smith was mailing packages containing cocaine from Houston, Texas, to Joseph Harper in Madison. In total, postal records from November 2017 to November 2018 showed 32 packages mailed from Smith to addresses in Wisconsin or Iowa associated with Harper. Based on witness statements and multiple cocaine seizures in the case, agents learned that each of the packages contained between a half kilogram and one kilogram of cocaine.
Intercepted communications during the investigation revealed that Jackson was a highly trusted confidant of Harper and also a frequent cocaine customer. Surveillance showed that Jackson regularly visited Harper at his cocaine stash house in Madison after the arrival of a suspected cocaine package. On September 21, 2018, Jackson bought two ounces of cocaine from Harper at the cocaine stash house and led police on a high speed chase through the eastside of Madison when they attempted to pull him over. In addition, Jackson and Harper had a long telephone conversation about kilogram prices for cocaine and how they could make money working together.
In imposing the sentence, Judge Conley noted that Jackson had multiple prior felony convictions for cocaine trafficking. In addition to Smith, Harper, and Jackson, eight other defendants have pleaded guilty in the case. Earlier this month, Judge Conley sentenced Harper to 12 years in prison and Smith to 11 years in prison for their roles in the conspiracy.
The charge against Jackson is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Serial Robber Sentenced to 6 YearsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Trevor Christian, 24, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to six years in federal prison, for robbing a Walgreens, two banks, and a credit union, all located in Madison. Christian pleaded guilty to these charges on April 17, 2019. His prison term will be followed by a 3-year period of supervised release.
On November 1, 2018, Christian robbed a Walgreens on East Washington Avenue. On November 5, 2018, he robbed a branch of the Associated Bank on Shopko Drive. On November 7, 2018, Christian robbed another branch of Associated Bank, on Odana Road. Finally, on November 14, 2018, he robbed a branch of the Dane County Credit Union on Struck Street.
In each robbery, Christian passed notes demanding money and threatening violence if the victims did not cooperate. Judge Peterson noted the emotional trauma caused to the victims, said Christian was “out of control,” and sentenced him to six years in prison to protect the public.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Christian were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Man Sentenced to 90 Months for Distributing Methamphetamine in Eau ClaireRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Todd Anderson, 38, Centerville, Minnesota, was sentenced on Friday, August 16, by U.S. District Judge James D. Peterson to 90 months in federal prison for distributing methamphetamine. Anderson pleaded guilty to this charge on April 30, 2019.
In July 2018, the Drug Enforcement Administration (DEA), the Eau Claire Police Department, and the West Central Drug Task Force were conducting a joint investigation into methamphetamine trafficking in Eau Claire. Officers received information identifying Manuel Small as an individual selling methamphetamine out of an Eau Claire motel room, and providing a description of Small’s source of methamphetamine. Officers were surveilling Small’s motel room on July 30, 2018, when Anderson arrived at the room, went in for a short time, then drove off. Anderson matched the description of Small’s drug source, and was arrested minutes later at a nearby gas station. In the meantime, other officers executed a search warrant at Small’s motel room and found over 50 grams of methamphetamine packaged for resale. Anderson confirmed that he delivered two ounces of methamphetamine to Small, and that he had been supplying Small one to two ounces of methamphetamine daily for about a month.
Small was arrested the same day, and charged in a separate federal indictment. He pleaded guilty April 17, and was sentenced on August 8 to seven years in federal prison.
The charges against Todd Anderson and Manuel Small were the result of a joint investigation conducted by the West Central Drug Task Force, the Eau Claire Police Department and DEA. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Man Pleads Guilty to Embezzling More Than $1 Million from Wisconsin & Kentucky BusinessesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Curtis Tarver, 54, Spring Grove, Minnesota, pleaded guilty today to wire fraud. The wire fraud charge stems from Tarver’s embezzlement from Rapid Die and Molding Company (“RDM”) in Cassville, Wisconsin, and its sister company Hawley Products in Paducah, Kentucky.
Tarver began working for RDM and was eventually promoted to Chief Financial Officer (CFO) for RDM and Hawley Products (“the companies”). As the CFO, Tarver was responsible for handling all financial matters for the companies, including, but not limited to, disbursing payments, depositing and transferring funds, and balancing bank accounts. In this role, Tarver had access to and utilized a variety of financial accounts belonging to the companies, including bank accounts, commercial credit accounts, and PayPal.
The government’s investigation revealed that from 2006 until January 2018, Tarver devised and participated in a scheme to embezzle money from the companies. Tarver embezzled money from the companies in a variety of ways, including: 1) using the companies’ credit cards to make personal purchases; 2) using the companies’ checks for personal purchases; 3) issuing the companies’ checks to himself; 4) transferring the companies’ funds to his personal bank accounts using PayPal; and 5) direct transfers from the companies’ bank accounts to his personal bank accounts. For example, on November 30, 2015, Tarver transferred $9,200 from RDM’s PayPal account to his personal PayPal account. Tarver subsequently transferred the $9,200 to his personal account at Navy Federal Credit Union.
The government’s investigation revealed that Tarver used the embezzled funds for a variety of personal expenditures, including home improvements, recreational vehicles, travel, and dining. Tarver also provided the embezzled funds directly to other people as gifts or loans. In total, Tarver embezzled approximately $1,023,000 from the companies.
U.S. District Judge James Peterson scheduled sentencing for December 5, 2019 at 1:00 p.m. Tarver faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation and the Cassville Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Aaron Wegner.
Former Tax Return Preparer Sentenced to 21 MonthsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Kimberly Harrison, 47, Beloit, Wisconsin, was sentenced yesterday by U.S. District Chief Judge James D. Peterson to 21 months in federal prison, to be followed by one year of supervised release, for aiding and abetting the preparation and filing of a false income tax return. The court will determine the amount of restitution Harrison will be ordered to pay in 30 days.
On May 24, 2019, Harrison pleaded guilty to aiding and abetting in the preparation and filing of a false income tax return with the Internal Revenue Service. Harrison had been charged on August 1, 2018, by a grand jury in Madison, Wisconsin with a 29-count indictment alleging that she prepared false and fraudulent income tax returns for various taxpayers for tax years 2013 through 2016.
At her plea hearing, Harrison admitted that the government could prove that she filed tax returns from her home in Beloit using various IP addresses that came back to her, even though she failed to sign the tax returns as the paid return preparer, and instead made it look as if the taxpayers themselves were signing and filing their own tax returns.
At yesterday’s sentencing, Judge Peterson found that Harrison had prepared and filed 374 false tax returns for tax years 2013 through 2016, which caused a tax loss of $583,298. Judge Peterson also found that Harrison earned about $9,350 a year in fees that she charged her clients and that she did not report on her own tax returns, or to other governmental authorities who were providing her with public benefits.
In imposing the 21-month prison term, Judge Peterson explained, “People need to know that our tax laws will be enforced and if you cheat on your taxes, it is going to be taken seriously.” According to the judge, Harrison’s crime was a serious offense because it involved a large tax loss to the United States government. Judge Peterson also noted there is a certain outrage to the community by Harrison’s cheating of the very government that supplies her with public benefits, and this cheating hurts other recipients who need those benefits like veterans and the disabled. In addressing Harrison, the judge told her that “claiming poverty is no excuse” because her crime was “done for pocket money, which is greed” and arrogance, not ignorance.
Judge Peterson ordered Harrison to report to the Federal Bureau of Prisons to begin her prison sentence on September 16, 2019.
The charges against Harrison are the result of an investigation conducted by the Madison office of IRS Criminal Investigation. The prosecution of this case was handled by Assistant U.S. Attorney Daniel Graber.
Woman Sentenced for Embezzling over $350,000 from Dells Fire & EMS CommissionsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Stephanie Czuprynko, 54, Wisconsin Dells, Wisconsin, was sentenced today by U.S. District Judge William B. Conley to 15 months in federal prison, to be followed by three years of supervised release, and ordered to pay $358,233.42 in restitution. Judge Conley noted that Czuprynko paid the entire restitution amount prior to the sentencing hearing.
On May 21, 2019, Czuprynko pleaded guilty to embezzling public monies that involved at least $10,000 in federal funds. At the plea hearing, the government proffered facts showing that Czuprynko, who worked as the secretary/bookkeeper for the Delton Fire Department Commission and Dells-Delton Emergency Services Commission, had embezzled funds from the checking accounts of those two commissions. On November 20, 2018, the Lake Delton police confronted her with the missing money in the checking accounts and she confessed to stealing the funds. The total loss amounted to $358,233.42, and spanned from February 1, 2016 to November 16, 2018. Czuprynko provided spreadsheets to the police detailing her thefts.
At today’s sentencing, Judge Conley noted that Czuprynko’s embezzlement violated the trust of her employer, the trust of the public in its institutions, and placed the whole community at risk because of a lack of funds to provide Fire and EMS services.
After the sentencing, U.S. Attorney Scott Blader added, “My office is committed to holding accountable those who abuse the public trust for their own personal gain.”
The charges against Czuprynko are the result of an investigation conducted by the Federal Bureau of Investigation and the Lake Delton Police Department. The prosecution of this case was handled by Assistant U.S. Attorney Daniel Graber.
Federal Prison Inmate Sentenced for Assaulting Fellow InmateRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Carl Richardson, 40, was sentenced today by U.S. District Judge James D. Peterson to 48 months in federal prison for assaulting an inmate at the Federal Correctional Institution at Oxford, Wisconsin. Richardson pleaded guilty to this charge on May 22, 2019. This sentence is to be served consecutively to Richardson’s current federal sentence for being a felon in possession of a firearm.
On November 5, 2017, Richardson brutally attacked a fellow inmate at FCI-Oxford using a combination lock that he secured to the end of a belt. As a result, the victim sustained significant injuries to his hands, face, neck, and head. During sentencing, Judge Peterson stressed the importance of keeping people safe in prison. He also explained that inmates insult the integrity of the institution by engaging in such conduct.
The charge against Richardson was the result of an investigation conducted by the Federal Bureau of Investigation and the Bureau of Prisons – Special Investigative Services. The prosecution of the case has been handled by Special Assistant U.S. Attorney Chadwick M. Elgersma.
Eau Claire Man Sentenced to 7 Years for Possessing Methamphetamine for SaleRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Manuel Small, 48, Eau Claire, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to seven years in federal prison for possessing methamphetamine with the intent to sell it. Small pleaded guilty to this charge on April 17, 2019.
Small was arrested in Eau Claire on July 30, 2018, after officers searched his hotel room and found over 50 grams of methamphetamine packaged for resale. Officers had been surveilling the room a few days before the search and watched numerous individuals visit the room. Officers received information that Small was selling methamphetamine out of that room during that time.
In sentencing Small, Judge Peterson considered the amount methamphetamine involved, the fact that Small involved others to deal for him, and Small’s extensive and serious criminal history, including several convictions for domestic violence. Judge Peterson was also concerned that Small’s criminal history began later in life when he was in his 30’s, and continued until his arrest at an age one would expect to see criminal behavior begin to subside. Judge Peterson nonetheless saw the potential for Small to be law abiding, if he could address his substance abuse and anger issues.
The charge against Manuel Small was the result of an investigation conducted by the Eau Claire Police Department and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Drug Crimes Involving Heroin
D’Angelo Smith, 42, Madison, Wisconsin, is charged with possessing 100 grams or more of heroin with the intent to distribute. The indictment alleges that he possessed the heroin at his residence in Madison on June 17, 2019. The indictment also charges Smith with possessing heroin with intent to distribute, alleging he possessed heroin in a vehicle on June 17, 2019.
If convicted, Smith faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the charge alleging 100 grams or more of heroin, and 20 years on the second charge. The charges against him are the result of an investigation by the Sun Prairie Police Department and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Robert A. Anderson is handling the prosecution.
Madison Man Charged with Gun & Drug Crimes
Reginald Lawrence, 52, Madison, Wisconsin, is charged with being a felon in possession of firearms, possessing heroin with intent to distribute, and possessing firearms in furtherance of a drug trafficking crime. The indictment alleges that he possessed heroin, a loaded 9mm pistol, and a .380 caliber pistol on July 22, 2019.
If convicted, Lawrence faces a maximum penalty of 10 years in federal prison on the felon in possession charge, and 20 years in federal prison on the heroin charge. The charge of possessing firearms in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years, which would be served consecutive to any other sentence imposed.
The charges against Lawrence are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Janesville Man Charged with Being a Felon In Possession of a Firearm & Ammunition
Antonio Sims, 39, Janesville, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a .40 caliber pistol and ammunition on July 4, 2019.
If convicted, Sims faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Janesville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. United States Attorney Scott C. Blader is handling the prosecution.
Madison Man Faces Additional Charges
Jeremiah Edwards, 33, Madison, Wisconsin is charged in a superseding indictment with the armed robbery of a Dane County business, brandishing a firearm during this crime of violence, being a felon in possession of a firearm, possessing marijuana with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. The superseding indictment alleges that on November 8, 2018, he robbed O’Reilly Auto Parts in the Town of Blooming Grove, Wisconsin, that he did so while brandishing a firearm, and that he possessed marijuana and a loaded 9mm handgun.
Edwards was previously charged with the armed robbery and brandishing a firearm during this crime of violence in an indictment returned by the grand jury on November 28, 2018.
If convicted, Edwards faces a maximum penalty of 20 years in federal prison on the armed robbery charge, 10 years on the felon in possession charge, and five years on the marijuana charge. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum penalty of seven years, and the charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years, to be served consecutive to each other and to any sentence imposed on any other charge.
The charges against Edwards are the result of an investigation by the Madison and Middleton Police Departments, Dane County Sheriff’s Office, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
The indictments against Lawrence, Sims, and Edwards have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Man Sentenced to 7 Years for Madison Bank RobberiesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Campton, 30, Elkhorn, Wisconsin, was sentenced on August 2 by U.S. District Judge William Conley to seven years in federal prison for robbing three banks in Madison in 2018.
On June 3, 2019, Campton pleaded guilty to robbing Home Savings Bank on East Washington Avenue on September 4, 2018, and stipulated to robbing the Cottage Grove Road Associated Bank on August 25, 2018, and the West Broadway Street Associated Bank on August 31, 2018.
Campton had just been released from Wisconsin state prison on June 7, 2018, after completing the Earned Release Program, an intensive substance abuse treatment program. Judge Conley noted that this program had no impact on Campton’s return to drug use and subsequent string of bank robberies that terrorized the victims. Judge Conley found Campton’s actions outrageous and warned him that if he does not clean up his act when released from this sentence, he will be going back to federal prison. Campton was also ordered to pay restitution.
The charge against Campton was the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
McFarland Man Sentenced for Money Laundering Conspiracy Related to Sale of Synthetic CannabinoidsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Zahid Shakeel, 58, McFarland, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 18 months in federal prison for conspiring to commit money laundering related to the sale of synthetic cannabinoids at gas stations owned by Capitol Petroleum, LLC (Capitol Petroleum). Shakeel pleaded guilty to this charge on April 24, 2019.
Farooq Shahzad owns and operates Capitol Petroleum, and Zahid Shakeel was formerly the general manager for the company. From July 2015 through April 2016, Shahzad conspired with Shakeel and others to distribute synthetic cannabinoids, dangerous drugs capable of hallucinogenic effects. Law enforcement officials repeatedly asked Shahzad, Shakeel, and other Capitol Petroleum employees to stop the sale of these dangerous drugs, and executed search warrants in June 2015 seizing the inventories of two gas stations. Despite these warnings, the conspirators continued to distribute synthetic cannabinoids from a Mobil gas station located at 3505 East Washington Avenue in Madison. During this period, Shakeel systematically made cash deposits from the sale of synthetic cannabinoids into bank accounts controlled by Shahzad.
In sentencing Shakeel, Judge Peterson stated that Shakeel was deeply involved in the conspiracy and persisted in distributing synthetic cannabinoids even after he knew it was illegal and damaging to the community. Judge Peterson noted that Shakeel also filed a false affidavit in court in connection with the government’s early investigation into the conspiracy. However, Judge Peterson also noted that unlike Shahzad, there was no evidence that Shakeel significantly profited from the sale of synthetic cannabinoids.
On March 20, 2019, Judge Peterson sentenced Shahzad to 30 months in federal prison for conspiring to distribute synthetic cannabinoids and possessing untaxed smokeless tobacco.
The charge against Zahid Shakeel was the result of an investigation conducted by IRS Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Wisconsin Department of Justice Division of Criminal Investigation, Wisconsin Department of Revenue, and Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Waunakee Man Sentenced to 84 Months for Fraud SchemeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Patrick O’Connor, 61, Waunakee, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 84 months in federal prison for wire fraud and money laundering. O’Connor, a real estate developer and licensed real estate agent, pleaded guilty to these charges on April 4, 2019.
The government’s investigation revealed that between 2011 and 2018, O’Connor solicited funds from several individuals for investment in an entity he created entitled “Madison Financial Services.” As part of his solicitations, O’Connor made various material misrepresentations to investors regarding Madison Financial Services. For example, O’Connor represented that Madison Financial Services would invest all of the investors’ funds into a TradeStation online brokerage account. O’Connor represented that he would use the TradeStation account to actively trade purchased securities and he projected an average annual return on the investment of 2% a month, or 24% annually.
In fact, O’Connor used a large portion of the investors’ funds for his own personal expenses, including expenses related to his real estate development business and to repay other investors. In addition, of the funds that O’Connor actually deposited into his TradeStation accounts and actively traded, he either lost or withdrew the vast majority of the funds and rarely generated any profit.
To further perpetuate the fraud, O’Connor provided investors with purported account statements from their investments with Madison Financial Services. The account statements were fictitious and showed the investors’ supposed year-to-date profits and their supposed current portfolio balance. In addition, O’Connor made Ponzi-style payments to some investors and stated that the money was interest income earned from their investment in Madison Financial Services.
On October 26, 2017, a criminal investigator from the Internal Revenue Service visited O’Connor at his home in Waunakee. During the interview, the investigator questioned O’Connor regarding the particulars of Madison Financial Services and its investments. Specifically, the investigator asked about a $500,000 check from an investor where only $300,000 was transferred into O’Connor’s TradeStation account. Records showed O’Connor used the remaining $200,000 to pay off a real estate loan and for various personal expenses. When pressed to explain the transactions, O’Connor lied to the investigator and stated the investor was also investing in his real estate company. O’Connor also falsely stated that any remaining money used for his own personal expenses came from a fee charged to the client for his services.
In the months following the interview with the IRS investigator, O’Connor continued to solicit people for investments and convinced two investors to provide him with over $1.7 million. In total, O’Connor convinced six investors to invest over $12 million with him. The total loss to the investors once the fraud scheme was revealed was $9,686,848.
In imposing the sentence, Judge Conley stated O’Connor’s Ponzi scheme was “calculated and predatory” and the total amount of money that he stole was “staggering.” Judge Conley noted that O’Connor was living a lie while destroying his investors’ finances, and it was a life full of pride, hubris, and greed. Judge Conley also noted that O’Connor’s decision to take more money from investors after being interviewed by law enforcement was “morally bankrupt.”
The charges against O’Connor were a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Third Member of Cocaine Conspiracy SentencedRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Timothy Hotchkiss, 30, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 10 years in federal prison for conspiring to distribute 500 grams or more of cocaine. Hotchkiss pleaded guilty to this charge on May 14, 2019.
Hotchkiss was charged along with 11 other individuals for participating in a cocaine distribution scheme. The investigation revealed that Gregory Smith mailed packages containing cocaine from Houston, Texas, to Joseph Harper in Madison. Postal records from November 2017 to November 2018 showed 32 packages mailed from Smith to addresses in Wisconsin or Iowa associated with Harper. Based on witness statements and multiple cocaine seizures in the case, agents learned that each of the packages contained between a half kilogram and one kilogram of cocaine.
Intercepted communications during the wiretap investigation revealed that Hotchkiss was a highly trusted confidant of Harper and also a frequent cocaine customer. Surveillance showed that Hotchkiss regularly visited Harper at his cocaine stash house in Madison after the arrival of a suspected cocaine package. In addition, Hotchkiss would pool money with Harper in order receive larger shipments of cocaine from Smith. Hotchkiss also assisted Harper with travel arrangements to visit Smith in Houston.
In addition to Smith, Harper, and Hotchkiss, seven other defendants have pleaded guilty in the case. Earlier this month, Judge Conley sentenced Harper to 12 years in prison and Smith to 11 years in prison for their respective roles in the conspiracy.
The charge against Hotchkiss is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Madison Man Sentenced to 12 Years for Cocaine ConspiracyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Joseph Harper, 42, Madison, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 12 years in federal prison for conspiring to distribute 500 grams or more of cocaine. Harper pleaded guilty to this charge on April 19, 2019.
The investigation revealed that Gregory Smith was mailing packages containing cocaine from Houston, to Harper in Madison. Postal records from November 2017 to November 2018 showed 32 packages mailed from Smith, to addresses in Wisconsin or Iowa associated with Harper, and 48 packages were mailed from the Madison area by Harper or his associates to addresses associated with the Smith in Houston. Based on witness statements and multiple cocaine seizures in the case, agents learned that each of the packages coming from Smith contained between a half kilogram and one kilogram of cocaine.
In addition, federal agents executed search warrants on five of the packages sent to Smith from Harper or his associates, and identified over $85,000 in cash. Based on communications between Harper and Smith, along with other investigative information, agents learned that each of the 48 packages Harper mailed to Smith contained money to pay for cocaine.
In imposing the sentence, Judge Conley stated that Harper designed, implemented, and led a large-scale interstate conspiracy involving at least 16 kilograms of cocaine. Judge Conley noted that Harper actively recruited other people to join the conspiracy, many of whom ended up charged along with him in the case. Judge Conley also noted that Harper had six prior felony drug trafficking convictions, with two of those convictions involving cocaine.
Twelve individuals have been charged for participating in this cocaine distribution scheme. In addition to Smith and Harper, eight other defendants have pleaded guilty. On July 10, 2019, Judge Conley sentenced Smith to 11 years in prison for his role in the conspiracy. The other individuals who have pleaded guilty are awaiting sentencing.
The charge against Harper is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
California Man Sentenced to 13 Years for Shipping Methamphetamine to WisconsinRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Adan Ayala, 46, Olivehurst, California, pleaded guilty and was sentenced yesterday by U.S. District Judge James D. Peterson to 13 years in federal prison for attempting to distribute methamphetamine.
On April 20, 2018, law enforcement agents in Madison, Wisconsin, intercepted a package of methamphetamine that was intended for a local distributor. The package contained three, 1-pound packages of methamphetamine that were vacuum-sealed and concealed in a bucket. The methamphetamine was almost 100% pure and totaled approximately 1,286 grams. Based on intercepted communications, agents learned that Ayala was hoping to begin regularly supplying large quantities of methamphetamine to the Madison area. This shipment was his first attempt.
In addition to other convictions, Ayala was convicted in 2004 for conspiring to possess methamphetamine with intent to distribute, and spent five years in prison before he was released on supervision. He violated his conditions of release by again selling methamphetamine. As a result, his supervision was revoked and he was sentenced to an additional 33 months in prison. He most recently was released in 2016.
During sentencing, Judge Peterson remarked on Ayala’s persistent drug dealing behavior despite his earning a significant income as a long-haul truck driver after his 2016 release from prison. Judge Peterson agreed with the Assistant U.S. Attorney that at 46 years old, it is expected that criminal behavior begins to abate, but in Ayala’s case, his drug-dealing behavior only escalated.
The charge against Ayala was the result of an investigation conducted by the Drug Enforcement Administration in Wisconsin and California, U.S. Postal Inspection Service, Wisconsin Department of Justice Division of Criminal Investigation, Colusa County (California) Task Force, and Folsom (California) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Grant County Man Sentenced to 78 Months for Possessing Methamphetamine & FirearmsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Dustin Caya, 35, Mount Hope, Wisconsin, was sentenced July 19 by U.S. District Judge William Conley to 78 months in federal prison for possessing more than 50 grams of methamphetamine with the intent to distribute, and possessing a firearm as a felon. Caya was convicted of these charges after he entered a plea to them on July 19.
Officers from the Grant County Sheriff’s Office found more than 350 grams of methamphetamine, along with scales, packaging material, and large sums of money in Caya’s home on June 1, 2018. There were also numerous loaded firearms throughout the house, despite the fact that Caya, a convicted felon, was prohibited from possessing firearms. Caya was also under State of Wisconsin extended supervision for the prior felony conviction at the time he committed these offenses.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Caya were the result of an investigation conducted by the Grant County Sheriff’s Office, Prairie du Chien Police Department, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson.
Madison Felon Sentenced to 37 Months for Gun CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Christopher Tibbs, 29, Madison, Wisconsin, was sentenced on July 18 by U.S. District Judge James Peterson to 37 months in federal prison for being a felon in possession of a firearm. Tibbs pleaded guilty to this offense on April 19, 2019.
On December 8, 2018, Madison police officers responded to a 911 call reporting a man with a gun at Connections Night Club located at 3737 East Washington Avenue in Madison. Officers found Tibbs in the back seat of a vehicle at the scene. The car was ultimately searched and officers found a Taurus .380 caliber pistol and a magazine in the area where Tibbs was sitting.
In sentencing Tibbs at the top of his advisory guideline range, Judge Peterson noted the situation was an inch away from something going really wrong and said his number one job was to make the community safe.
The charge against Tibbs was the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Illinois Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Matthew Slaughter, 37, Rockford, Illinois, was sentenced on July 18 by U.S. District Judge James Peterson to 10 years in federal prison for possessing child pornography. This sentence will run consecutively to an eight-year sentence the defendant was already serving for repeated sexual assault of a minor, and will be followed by 25 years of supervised release. Slaughter pleaded guilty to this charge on April 19, 2019.
In 2002, Slaughter was convicted of repeated sexual assault of a child. He was on extended supervision for that offense when he committed his federal offense. In addition to possessing child pornography, he had contact with several minors, asking them to send him explicit pictures.
Judge Peterson called the defendant a “dangerous predator” and ordered the defendant’s federal sentence to run consecutively to his state sentence because the defendant exploited his victims’ vulnerabilities for his own sexual satisfaction.
The charge against Slaughter was the result of the result of an investigation conducted by the Federal Bureau of Investigation and the Noblesville (Indiana) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Wausau Doctor Pleads Guilty to Diverting FentanylRead the Press Release
Madison, Wis. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Thomas Strick, 60, Wausau, Wisconsin, pleaded guilty today in U.S. District Court in Madison to five counts of obtaining fentanyl by use of misrepresentation and fraud. Strick faces a maximum penalty of four years in prison. District Judge William Conley scheduled sentencing for October 9, 2019 at 1:00 p.m.
During the time frame of the government’s investigation, Strick was employed as a family practice physician for Aspirus Health Care in Wausau. In this capacity, Strick worked at Aspirus Wausau Hospital and the Aspirus Wausau Family Clinic. The government’s investigation revealed that Strick regularly prescribed fentanyl patches to patients without a medical need. Strick instructed the patients to fill the prescriptions and return the fentanyl patches to him for personal use. The investigation into Strick’s patients’ records revealed over 100 suspected diversions of fentanyl patches between 2011 and 2018.
“The U.S. Department of Justice continues to make prosecution of those who divert or distribute lethally addictive substances such as fentanyl a priority,” said U.S. Attorney Blader. “My office will continue to work with our law enforcement partners to hold these individuals accountable, especially medical practitioners who violate their oaths.”
“Today’s guilty plea demonstrates the value of local and federal law enforcement working alongside prosecutors to hold rogue practitioners accountable for their actions. Every day the men and women of DEA work to improve public health and safety and bring to justice those responsible for the illicit trade and diversion of DEA controlled substances,” remarked Drug Enforcement Administration Associate Special Agent in Charge Robert J. Bell.
The charges against Strick are the result of an investigation by the Drug Enforcement Administration and the Wausau Police Department. The prosecution of this case has been handled by Assistant U.S. Attorney Aaron D. Wegner.
Milwaukee Man Sentenced to 21 Months for Credit Card FraudRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Gregory Bethea, 51, Milwaukee, was sentenced yesterday by U.S. District Judge William M. Conley to 21 months in federal prison for credit card fraud. Bethea was also ordered to pay $62,888.48 in restitution to Discover Financial Services.
In April 2014, law enforcement was contacted by a Sam’s Club and Walmart fraud investigator, who requested assistance with an ongoing credit card fraud investigation. Review of surveillance camera footage from Walmart and Sam’s Club stores helped law enforcement identify Bethea as the person using fraudulently obtained credit cards to purchase merchandise at retailers throughout Wisconsin and Michigan. Bethea purchased various items with the fraudulent credit cards, including food items, iPads, video gaming systems, clothing, computers, and electronics.
The charge against Bethea was the result of an investigation conducted by the U.S. Secret Service. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments yesterday. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Distributing Heroin
Anthony Nance, 29, Madison, Wisconsin, is charged with four counts of distributing heroin and two counts of possessing heroin with the intent to distribute. The indictment alleges that he committed these offenses in April and June 2019. One of the counts alleges that he possessed 100 grams or more of heroin, and one count alleges he possessed 500 grams or more of heroin.
If convicted, Nance faces a mandatory minimum five years to a maximum of 40 years in federal prison on the counts alleging 100 grams and 500 grams or more of heroin, and 20 years on the other four counts.
The charges against him are the result of an investigation by the Dane County Narcotics Task Force. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
La Crosse Man Charged with Distributing Heroin
David Wims, 40, La Crosse, Wisconsin, is charged with distributing heroin and with possessing heroin with intent to distribute. The indictment alleges that he distributed heroin on May 9, 2019, and he possessed heroin with intent to distribute on June 5, 2019.
If convicted, Wims faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the La Crosse Police Department and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Diane Schlipper is handling the prosecution.
Madison Man Charged with Gun Crimes
Travis L. Hicks, 24, Madison, Wisconsin, is charged with two counts of being a felon in possession of a firearm. The indictment alleges that on from January 21 to January 22, 2019, he possessed a 7.62 caliber firearm, and from January 22, 2019 to March 5, 2019, he possessed a 9mm pistol.
If convicted, Hicks faces a maximum penalty of 10 years in federal prison on each charge. The charges against him are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Eau Claire Man Charged with Illegally Possessing a Firearm
Lamont Davis, 30, Eau Claire, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on July 3, 2019, he possessed a 9mm pistol.
If convicted, Davis faces a maximum penalty of 10 years in federal prison. The charge against him are the result of an investigation by the Eau Claire Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
Tomah Man Charged with Being a Felon in Possession of a Loaded Firearm
Isaac Morales, 43, Tomah, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on February 15, 2019, he possessed a loaded 9mm pistol and 9mm ammunition.
If convicted, Morales faces a maximum penalty of 10 years in federal prison. The charge against him are the result of an investigation by the Monroe County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita Rumbelow is handling the prosecution.
Madison Man Charged with Illegally Possessing a Firearm
Malcolm Whiteside, 27, Madison, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on July 9, 2019, he possessed a 9mm handgun.
If convicted, Whiteside faces a maximum penalty of 10 years in federal prison. The charge against him are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita Rumbelow is handling the prosecution.
The indictment against Hicks, Davis, Morales, and Whiteside have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Wisconsin Rapids Man Convicted of Producing Child PornographyRead the Press Release
MADISON, WIS. - After a two-day trial, a federal jury in Madison, Wisconsin, found Alexander Kawleski, 42, Wisconsin Rapids, Wisconsin, guilty yesterday of 16 counts involving producing, attempting to produce, and possessing child pornography. U.S. Attorney Scott C. Blader for the Western District of Wisconsin announced the verdict.
Evidence at trial established that in 2013, Kawleski recorded himself sexually assaulting a girl who was between 15 and 16 years old. He kept a copy of the assault on a flash drive, where a friend found it and gave it to a Wisconsin Rapids Police Department Detective. In addition to the assault, the evidence established that in 2013 and 2014, Kawleski used a two-way mirror to secretly record two minor females while they were in the bathroom, in various stages of undress, getting in and out of the shower. Those recordings were saved on the same flash drive as the assault. One of the females was between 13 and 14 years old, and the other was 15 or 16 years old. Neither victim was aware that they were being filmed. Kawleski was convicted of producing child pornography related to the sexual assault video, and attempting to produce child pornography related to the secret shower videos. He was also convicted of possessing child pornography.
Chief U.S. District Judge James Peterson scheduled Kawleski’s sentencing for November 25 at 10:00 a.m. Kawleski faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each of the first 15 counts involving production and attempted production of child pornography, and a maximum of 10 years on the last count of possessing child pornography.
The charges against Kawleski are the result of an investigation by the Wisconsin Rapids Police Department and the Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of the case is being handled by Assistant U.S. Attorneys Elizabeth Altman and Laura Przybylinski Finn.
Video Gambling Machine Vendor Pleads Guilty to Tax CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Tom Laugen, 69, of Sun Prairie, Wisconsin, pleaded guilty today in U.S. District Court in Madison, Wisconsin to evading his 2015 federal income taxes.
According to the information filed by the U.S. Attorney’s Office, Laugen owned and operated Global Vending LLC, which operated as a vending company that supplied video gambling machines (VGMs) to Class B alcohol beverage-licensed taverns, restaurants and bowling alleys. The information alleges that Laugen split the cash profits generated by the VGMs with the tavern owners where the machines were placed, with Global typically receiving 25% of the VGM cash profits, and the tavern owners receiving the remaining 75%. The gross receipts from the VGMs were subject to Wisconsin sales tax. The net income from the VGMs were subject to Wisconsin income tax and federal income tax.
At today’s plea hearing, Laugen admitted the he skimmed VGM cash receipts and did not report the skimmed receipts on his state sales tax returns or on his state and federal income tax returns. The total tax loss from the skim, for both state and federal income taxes, and the state sales taxes, totaled $580,220.56 for the years 2010-2017.
The government proffered at today’s hearing that the investigation involved an IRS-CID Special Agent working as an undercover agent and posing as a buyer of a bar listed for sale by Cherie and Dudley Hellenbrand in August 2017. The bar was Middleton Sports Bowl (MSB) in Middleton, Wisconsin. On May 31, 2018, the undercover agent met with the Hellenbrands and Laugen at Middleton Sport Bowl. During that meeting, Laugen told the undercover agent he skimmed the cash receipts from all of his client’s VGMs, including Middleton Sport Bowl, and that he prepared handwritten collection tickets showing much lower numbers for what came in, what came out, and what was the profit. Laugen told the undercover agent he used the handwritten collection tickets to create fake 1099s that were used to report a portion of the VGM cash receipts to the IRS and to the state of Wisconsin.
Laugen also told the undercover agents that he had fake VGM machine-generated tickets created to support the numbers on the handwritten collection tickets in case there was an audit. Laugen explained to the undercover agent that, “you got to steal in this business or you ain’t going to make any money.”
Sentencing is set for October 4, 2019, at 10:30 a.m., before Chief U.S. District Judge James D. Peterson at the U.S. Courthouse in Madison, Wisconsin.
The charges against these defendants are the result of an ongoing investigation being conducted by IRS Criminal Investigation and the Wisconsin Department of Revenue, Office of Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Daniel Graber and Special Assistant U.S. Attorney Chadwick Elgersma.
Merrill Felon Sentenced to 54 Months for Drug & Gun CrimesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ryan Kleinschmidt, 25, Merrill, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 54 months in federal prison for possessing methamphetamine with the intent to distribute and for being a felon in possession of a firearm. Kleinschmidt pleaded guilty to these charges on April 11, 2019.
On September 18, 2018, Kleinschmidt was stopped by law enforcement for a traffic violation and was subsequently arrested on an outstanding state matter. A search of his vehicle resulted in the discovery of hidden compartments behind the dashboard where 26 grams of methamphetamine and a loaded Ruger .22 caliber pistol were found.
Judge Conley commented that possessing the handgun while selling drugs was disturbing conduct that created a risk for everyone involved, including law enforcement and others, and the fact that those items were concealed in a hidden compartment demonstrated an increased sophistication.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Kleinschmidt was the result of an investigation conducted by Lincoln County Sheriff’s Office, Merrill Police Department, Federal Bureau of Investigation, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
Madison Felon Sentenced for Possessing & Discharging FirearmRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Hallmon, 34, of Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 51 months in federal prison for possessing a firearm as a convicted felon. Hallmon pleaded guilty to the charge on March 8, 2019.
On September 6, 2018, Hallmon shot someone in broad daylight, in a crowded parking lot of an apartment complex in Madison. Hallmon and the victim had a dispute over a moped, which led to the shooting. Hallmon discharged three rounds towards the victim, who was hit in the leg with one round.
Hallmon is also charged in Dane County Circuit Court with attempted first degree intentional homicide, and that charge is pending. If convicted, that sentencing judge will decide whether Hallmon’s federal sentence will be served concurrently or consecutively to the state sentence. With respect to this state charge, Hallmon is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charge against Hallmon was the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. This prosecution was handled by Assistant U.S. Attorney Rita M. Rumbelow.
Attorney, Consultant and Business Owner Indicted for Wire & Bankruptcy FraudRead the Press Release
MADISON, WIS. — Chicago attorney Edward Lee Filer, consultant Robert Joseph Gereg and business owner Paul Michael Kelly have been indicted on wire and bankruptcy fraud charges alleging that they created a sham secured creditor with a senior lien on all of the assets of Kelly’s Chicago company, Barsanti Woodwork Corporation, for the purpose of fraudulently shielding the assets from legitimate creditors.
According to the 10 count indictment, Filer, 54, and Kelly, 49, both of Clarendon Hills, Illinois, and Gereg, 71, of Osprey, Florida, created sham limited liability companies and engaged in fraudulent agreements, assignments, transfers, transactions and state and bankruptcy court actions designed to make it appear that the fraudulent transactions involving Barsanti Woodwork’s assets were non-collusive and arms-length, in order to deceive and falsely represent to Barsanti Woodwork’s creditors and later to a bankruptcy trustee that Barsanti Woodwork’s assets had been taken by a secured creditor and that collection activities by legitimate creditors against Barsanti Woodwork would be futile.
Filer, then a partner in a Chicago law firm referred to in the indictment as Law Firm A, is alleged to have caused the fraudulent agreements, assignments, transfers, transactions and state and bankruptcy court actions necessary to accomplish the scheme.
The indictment further alleges that the defendants created BWC Capital to serve as a sham secured creditor of Barsanti Woodwork and falsely represented BWC Capital to be Gereg’s company, when, in reality, Gereg’s role was to conceal Kelly’s control of BWC Capital, as Filer had caused Gereg to secretly assign his interest in BWC Capital to a trust controlled by Kelly. The defendants then caused BWC Capital to use Barsanti Woodwork’s funds to purchase Barsanti Woodwork’s secured debt from a Bank at a discount and caused that Bank to assign its lien on Barsanti Woodwork’s assets to BWC Capital, giving Kelly control through Gereg of the senior lien on all of Barsanti Woodwork’s assets.
The defendants then allegedly began the process of fraudulently transferring Barsanti Woodwork’s assets to BWC Capital through a state court action using fraudulent back-dated confessions of judgment clauses and Gereg’s false affidavit which inflated the amount Barsanti Woodwork purportedly owed to BWC Capital. It is specifically alleged that Filer caused the confessions of judgment clauses to be back-dated in order conceal that they lacked consideration and to expedite the transfer of Barsanti Woodwork’s assets in anticipation of bankruptcy.
The indictment further alleges that the defendants created Barsanti Millwork as a sham entity under whose name Barsanti Woodwork continued to operate at the same location, and falsely represented Barsanti Millwork to be Gereg’s company, when, in reality, Gereg’s role was to conceal Kelly’s control of Barsanti Millwork, as Filer had also caused Gereg to secretly assign his interest in Barsanti Millwork to a trust controlled by Kelly.
According to the indictment, the defendants then put Barsanti Woodwork into a bankruptcy in which defendants attempted to conceal the fraudulent transfer of Barsanti Woodwork’s assets, including the use of Barsanti Woodwork’s funds to purchase the bank debt for the benefit of BWC Capital, and made and caused false representations to be made, including that BWC Capital was a creditor with a claim against Barsanti Woodwork. Filer is then alleged to have concealed records from creditors and the bankruptcy trustee. Finally, both Filer and Gereg are alleged to have testified falsely under oath.
The indictment was returned Thursday. It charges Filer with two counts of wire fraud and eight counts of bankruptcy fraud; Gereg with two counts of wire fraud and seven counts of bankruptcy fraud; and Kelly with two counts of wire fraud and three counts of bankruptcy fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The law firm of Freeborn & Peters has authorized the disclosure that it is the law firm referred to in the indictment as Law Firm A. According to Scott C. Blader, United States Attorney for the Western District of Wisconsin, “Freeborn & Peters’ extensive cooperation with this investigation was exemplary and essential to successfully investigating this sophisticated offense.”
“The American public needs to be aware that any fraud or falsehood in connection with bankruptcy seriously undermines the integrity of the system,” said Craig Goldberg, Inspector in Charge of the Chicago Division of the United States Postal Inspection Service. “The U.S. Postal Inspection Service investigates crimes when the mail is used to commit a crime or in furtherance of a crime. The individuals charged in this case allegedly utilized the U.S. Mail as part of their scheme to shield assets from legitimate creditors.”
The indictment was announced by U.S. Attorney Blader, whose office is overseeing the matter; Inspector in Charge Goldberg of the U.S. Postal Inspection Service in Chicago; Irene Lindow, Special Agent-in-Charge of the Chicago Regional Office of the United States Department of Labor, Office of Inspector General; Tara Sullivan, Acting Special Agent-in-Charge of the Chicago Field Office of the Internal Revenue Service, Criminal Investigation; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Brian P. Netols and Special Assistant U.S. Attorney Jeffrey S. Snell.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each wire fraud count is punishable by a maximum sentence of 20 years in prison, while each count of bankruptcy fraud carries a maximum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Indictment.pdfWausau Man Sentenced to 8 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jake K. Jones, 28, Wausau, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to eight years in federal prison for possessing methamphetamine with intent to distribute.
On November 18, 2018, law enforcement officers stopped Jones’ vehicle for a traffic violation in Mosinee, Wisconsin. After providing a false name, Jones fled in his vehicle, reaching speeds of more than 100 miles per hour. Jones crashed his vehicle, then fled on foot. Eventually, Jones was arrested in possession of approximately 420 grams of pure methamphetamine.
The investigation subsequently revealed that Jones originally tried to purchase three pounds of methamphetamine but was only able to obtain one pound, which he intended to distribute in the Wausau area.
This is Jones’ fourth felony drug trafficking offense and Judge Conley remarked that Jones had a troubling history of adjustment under community supervision.
The charge against Jones was the result of an investigation conducted by the Central Wisconsin Narcotics Task Force, which includes the Marathon & Lincoln County Sheriffs’ Offices, Everest Metro and Wausau Police Departments, Federal Bureau of Investigation, Drug Enforcement Administration, and Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Middleton Bar Owners Plead Guilty to Tax Charge for Not Reporting Cash Skim from Gambling MachinesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Dudley Hellenbrand, 67, and Cherie Hellenbrand, 45, both of Middleton, Wisconsin, pleaded guilty today in U.S. District Court in Madison, Wisconsin to filing a false 2017 U.S. Individual Income Tax Return, Form 1040 with the IRS, that underreported their adjusted gross income.
According to the information filed by the U.S. Attorney’s Office, the Hellenbrands owned and operated Middleton Sports Bowl (MSB), in Middleton, Wisconsin since 1997. The defendants contracted with a video gambling machine (“VGM”) vendor to have VGMs placed at MSB. The defendants split the profits generated by the VGMs with the vendor, with the defendants most recently receiving 75% of the VGM profits, and the vendor receiving the remaining 25%. According to the information, the defendants were required to report as income on their state and federal income tax returns, their share of the VGM profits, and pay income taxes on these profits. The VGM vendor was required to report on their state and federal income tax returns, their share of the VGM profits, and pay income taxes on these profits. The VGM vendor was also required to report 100% of the VGM gross receipts on their state sales tax returns, and pay sales taxes on the gross receipts.
At today’s plea hearing, both defendants admitted that they skimmed the VGM cash receipts and did not report the skimmed receipts on their state and federal income tax returns. The tax loss from the skim for both state and federal income taxes for the years 2010-2017 totaled $268,852.04.
The government proffered at today’s hearing that the investigation involved an IRS Criminal Investigations Special Agent working as an undercover agent and posing as a buyer of MSB, which had been listed for sale by the defendants in late 2017. According to the government, the undercover agent met with the defendants and the VGM vendors at MSB on May 31, 2018. At that meeting, the defendants admitted to the undercover agent that they skimmed the cash receipts from the VGMs and did not report the skim on their tax returns. The defendants told the undercover agent they stored the skimmed VGM cash receipts at a safe in their home and used the cash to pay for various things, including a car, spending money for vacation, $40,000 in landscaping, and cash wages to some of their employees. One of the VGM vendors told the undercover agent that he prepared false collection tickets that underreported the true gross receipts and profits generated from the VGMs, and stated “you got to steal in this business or you ain’t going to make any money.”
Sentencing for both defendants is set for October 3, 2019, at 1:00 p.m. before Chief U.S. District Judge James D. Peterson at the U.S. Courthouse in Madison.
The charges against these defendants are the result of an investigation conducted by IRS Criminal Investigation and the Wisconsin Department of Revenue, Office of Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Daniel Graber and Special Assistant U.S. Attorney Chadwick Elgersma.
Madison Man Sentenced to 25 Years for Sex TraffickingRead the Press Release
MADISON, WIS. – Erin J. Graham, 37, of Madison, Wisconsin, was sentenced today to 25 years in federal prison for sex trafficking and transporting individuals across state lines with the intent that they engage in prostitution, announced Scott C. Blader, United States Attorney for the Western District of Wisconsin. The sentence was imposed by Chief U.S. District Judge James D. Peterson.
Graham was convicted following a five-day jury trial in Madison in April. The evidence presented at trial established that between 2015 and 2017, Graham engaged in sex trafficking by force, coercion and fraud, and transported individuals across state lines with the intent that they engage in prostitution. Graham posted advertisements on Backpage.com and forced or coerced individuals to commit commercial sex acts with those who responded to the advertisements. In addition, Graham transported two individuals between Wisconsin and Virginia with the intent that they engage in prostitution.
The scheme was uncovered in April 2017 when law enforcement officials encountered one of the victims at a Madison hotel when an employee called 911 after the victim ran from her room bleeding and hid behind the front desk. The victim told a nurse at a Madison hospital that she had been strangled to the point of unconsciousness by Graham when she told him she wanted to leave.
At the trial, four victims testified that they were forced to engage in multiple acts of prostitution and turn over money they earned to Graham and his girlfriend, Patience Moore. The victims testified that they were the only source of income for Graham and Moore. One victim was with Graham and Moore for 18 months, from age 18 to 20. They convinced her that they would help her make money to care for her ill mother, to be able to go to school, and to purchase a car. Instead, testimony at trial showed that Graham was physically abusive to the victim on many occasions and controlled everything from her access to food to when she could speak to her family.
In a written victim impact statement provided to the Court, one of Graham’s victims said, “When I realized the truth was to sell my body so that he could have money and never work another day in his life, I didn’t feel like a person, and I felt I didn’t have value.”
Judge Peterson said, “This case was about vulnerable women degraded by a heartless predator.” The judge said the lengthy sentence was necessary to make the public safe from Graham’s future efforts to exploit women.
“The defendants’ actions in using violence, intimidation, coercion, and fear to exploit these young women is abhorrent,” said U.S. Attorney Blader. “My office will continue to work with our law enforcement partners to prosecute those who engage in this despicable crime.”
"This case shows the level of power and control traffickers have over their victims. This highly successful investigation and prosecution is a clear message to those who engage in sex trafficking in our community -- they will face the combined efforts of local and federal officials to bring them to justice,” said Dane County Sheriff David Mahoney, whose agency led the investigation. "This case exemplifies the outstanding working relationship between my office and the U.S. Attorney's Office."
Patience Moore, Graham’s co-conspirator, pleaded guilty for her role in this sex trafficking scheme on March 14. She was sentenced on June 18 by Judge Peterson to three years in federal prison on June 18 for her role in this trafficking scheme.
The charges against Graham and Moore are the result of an investigation by the Dane County Sheriff’s Office, the Wisconsin Department of Justice Division of Criminal Investigation, with the assistance of the Madison, Grand Chute, Wisconsin State Capitol and Hampton (Virginia) Police Departments. Assistant U.S. Attorneys Julie Pfluger and Kevin Burke prosecuted the case.