District of Minnesota

ST. PAUL, Minn. – A Robbinsdale man has pleaded guilty to illegally possessing a firearm as a felon, announced United States Attorney Andrew M. Luger. 

According to the defendant’s guilty plea and court documents, on June 22, 2022, Tavaris Michael Dixon, 32, possessed a 9mm Glock semi-automatic pistol, with a Streamlight TLR-6 laser/light attachment. Dixon is prohibited from possessing a firearm because of prior felony convictions in Hennepin County, including a 2008 conviction of aggravated robbery and kidnapping.

Dixon pleaded guilty today in U.S. District Court before Judge Eric C. Tostrud to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.

Assistant U.S. Attorneys Lindsey E. Middlecamp and Justin A. Wesley are prosecuting the case.

MINNEAPOLIS – A Maple Grove man has been found guilty by a federal jury of trafficking fentanyl pills, possessing a machinegun, and other federal firearms violations, announced United States Attorney Andrew M. Luger.

Following a two-day trial before Senior U.S. District Judge Joan N. Ericksen, Derrick Maurice Scott 34, was convicted on one count of possession with intent to distribute fentanyl, one count of carrying a machinegun during and in relation to a drug trafficking crime, one count of possession of a machinegun, and one count of possessing a firearm as a felon. Under the federal sentencing guidelines, Scott is subject to a 30-year mandatory minimum prison sentence. A sentencing hearing will be scheduled at a later date.

“Mr. Scott has a long and violent criminal history, including possessing a machine gun, domestic assaults, and fentanyl dealing,” said U.S. Attorney Andrew Luger. “When Mr. Scott was arrested on federal charges, he told law enforcement that when he gets released from prison, he will ‘still be the king and he will get another switch,’ but Mr. Scott’s bravado was badly misplaced, as he is now subject to a mandatory 30-year prison sentence.”

“Derrick Scott’s bad acts caused significant harm in our communities. His disregard for human life required swift and significant consequences.  I am thankful for all our law enforcement partners who aided in this investigation,” said Minneapolis Police Chief Brian O’Hara.

“Today Derrick Scott was found guilty not only for selling highly-lethal drugs but also protecting his illegal trade with a machine gun,” said ATF Special Agent in Charge William McCrary, of the St. Paul Field Division. “Drug dealers utilizing auto-sears are doing severe damage to the people in our communities, and it must stop. Today’s conviction is a case where a criminal who is clearly willing to do violence using these devices has been held accountable and will be removed from society for a very long time. I am grateful for the jury’s decision, and deeply appreciate the hard work of our agents, our law enforcement partners and the U.S. Attorney’s Office for this successful prosecution.”

As proven at trial, on June 4, 2022, officers with the Minneapolis Police Department received a complaint that Scott had threatened a man at a convenience store while brandishing a firearm. Two days later, officers located Scott and conducted a traffic stop of a vehicle in which Scott was a passenger. Following a search of the vehicle, officers recovered 355 fentanyl pills and a Glock 41, .45 caliber pistol equipped with an auto-sear or “switch” (a device that makes a firearm function as a fully automatic machinegun) and a high-capacity magazine.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.

Assistant U.S. Attorneys Thomas M. Hollenhorst and Chelsea A. Walcker tried the case.

MINNEAPOLIS – A Minneapolis man has pleaded guilty to illegally possessing a firearm as a felon, announced United States Attorney Andrew M. Luger. 

According to the defendant’s guilty plea and court documents, on July 18, 2022, Javier Juan Valtierra, 31, possessed a Smith & Wesson, M&P Bodyguard 380, .380 caliber semi-automatic pistol. Officers of the Minneapolis Police Department were called to the scene of the vehicle following calls that Valtierra and another individual were unconscious inside the vehicle. Officers found the firearm in Valtierra’s pocket. Officers also found baggies of cocaine and methamphetamine on Valtierra and in the car.

Valtierra pleaded guilty yesterday in U.S. District Court before Senior Judge Michael J. Davis to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.

Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.

BEMIDJI, Minn. – Five members of the Red Lake Band of Chippewa Indians have been indicted for multiple child abuse charges including child torture and child neglect on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger.

According to court documents, between January 1, 2021, and April 29, 2022, Trina Mae Johnson, 49, directed the torture, endangerment, neglect, and abuse of a child who was in Johnson’s legal custody through a foster care placement. Johnson was aided and abetted by Bertram Calvin Lussier, Jr., 42, and Johnson’s three sisters, Bobbi Jo Johnson (a/k/a Bobbi Jo Kingbird), 44, Ellie Mae Johnson, 47, and Patricia Ann Johnson, 39, who all regularly assumed responsibility for all or a portion of the care and supervision of the minor victim. The abuse included withholding food from the victim to the point of starvation, forcing the victim to stand in uncomfortable positions for long periods of time, and assaulting the victim in various ways.  As a result of Johnson’s and her accomplices’ abuse, the victim suffered serious and substantial physical, mental and emotional harm.

Trina Johnson is charged with one count of child torture, one count of child neglect—deprivation of food and health care, one count of child endangerment and one count of assault on a minor with a dangerous weapon. Bobbi Johnson, Ellie Johnson, Patricia Johnson and Lussier, were each charged with one count of child neglect—deprivation of food and health care and one count of child endangerment.

Trina Johnson, Bobbi Johnson, Patricia Johnson, and Lussier all made their initial appearances Friday, January 27, in U.S. District Court before Magistrate Judge Jon T. Huseby.

Ellie Johnson will make her initial appearance in U.S. District Court before a Magistrate Judge at a later date.

This case was investigated by the FBI and the Red Lake Tribal Police Department, with support from the Minnesota Bureau of Criminal Apprehension, the Beltrami County Sherriff’s Office, the Bemidji Police Department, and the Blackduck Police Department.

Assistant U.S. Attorneys Ruth S. Shnider and Angela M. Munoz are prosecuting the case.

An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. – A Coon Rapids man has been charged in a criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents, on December 29, 2022, officers with the Coon Rapids Police Department conducted a traffic stop on a vehicle driven by Lewis Edward Byrd III, 45. Byrd, a felon with a prior sexual assault conviction, was arrested for violations related to his status as a predatory offender. After the arrest, officers searched Byrd’s vehicle and found a Smith and Wesson 9mm handgun in a pillowcase behind the driver’s seat. Further investigation revealed that Byrd purchased the firearm from a private seller earlier in December 2022. Law enforcement contacted the seller who confirmed the sale of the firearm and said that Byrd stated he was not a felon.

Because Byrd has prior felony convictions, including first degree criminal sexual conduct, stalking, and false imprisonment, he is prohibited under federal law from possessing firearms or ammunition at any time.

The complaint charges Byrd with one count of possession of a firearm as a felon. On January 26, 2023, Magistrate Judge John F. Docherty ordered Byrd to remain in detention pending further court proceedings.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Coon Rapids Police Department.

Assistant U.S. Attorney Lindsey Middlecamp is prosecuting the case.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – Liban Yasin Alishire has pleaded guilty to his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.

According to court documents, Alishire, 43, of Brooklyn Park, enrolled Community Enhancement Services and Lake Street Kitchen, organizations he helped operate, in the Federal Child Nutrition Program as purported sites providing meals to underprivileged children under the sponsorship of Feeding Our Future.

Alishire admits that after enrolling in the Federal Child Nutrition Program, he began submitting fraudulent claims for reimbursement for serving meals to hundreds or thousands of children a day. Alishire falsified invoices to document the purchase of food, and the preparation and submitting of falsified attendance rosters purporting to document the names of children who received meals. Alishire also operated a distribution company, Ace Distribution Services, that purported to provide meals to be served to children at the Community Enhancement Services site.

In total, Community Enhancement Services claimed to have served over 800,000 meals between February and October 2021, and Lake Street Kitchen claimed to have served over 70,000 meals between December 2020 and April 2021. In reality, Community Enhancement Services and Lake Street Kitchen served a fraction of the meal amounts claimed.

Based on the fraudulent claims, Community Enhancement Services and Lake Street Kitchen received more than a million dollars in Federal Child Nutrition Program funds from their sponsor entity, Feeding Our Future. Alishire caused the transfer of much of this money to himself and others via shell companies used to receive and launder the proceeds of the fraud scheme.

According to court documents, Hoodo Properties was one such shell company Alishire controlled and used to launder proceeds from the fraud scheme. On or about November 22, 2021, Alishire conducted a wire transfer of $216,300 from Hoodo Properties to Jaafar Jelle & Co. towards the purchase of the Karibu Palms Resort in Diani Beach, Kenya.

In total, Alishire fraudulently claimed approximately $2,427,576.17 in Federal Child Nutrition Program funds, of which Feeding Our Future paid out $1,783,786.45 to the defendant and his co-conspirators. In all, Alishire obtained $712,084.00 in fraud proceeds for himself and entities he controlled.

Alishire pleaded guilty today in U.S. District Court before Judge Nancy E. Brasel to one count of wire fraud and one count of money laundering. As part of his plea agreement, Alishire will forfeit a boat and trailer, a Ford F150 pickup truck, an apartment unit in Nairobi, Kenya, and the Karibu Palms Resort on the Indian Ocean in Kenya. Alishire also agreed to a $712,084.00 forfeiture money judgment. A sentencing hearing will be scheduled at a later time.

This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

This case is being prosecuted by Assistant U.S. Attorneys Joseph S. Teirab, Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Chelsea A. Walcker. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

ST. PAUL, Minn. – Two men have been sentenced to prison for the armed carjacking of a woman in a mall parking lot, announced United States Attorney Andrew M. Luger.

Leon Kismit Bell, 49, and Jack Mitchell Piche, 23, both pleaded guilty to aiding and abetting carjacking and were sentenced January 20, 2023, in U.S. District Court before Judge Wilhelmina M. Wright. Bell received 120 months in prison followed by three years of supervised release. Piche was sentenced to 40 months in prison followed by three years of supervised release.

According to court documents, On February 16, 2022, Piche and Bell intentionally took a car by means of force from a victim in the parking lot of the Rosedale Mall in Roseville. As the victim drove around the parking lot looking for a place to park, Piche and Bell followed the victim’s car. Piche and Bell waited for the victim to get out of the car and then approached. As Piche was watching out, Bell went up to the victim, brandished a gun, and demanded her car keys. After the victim said that her car keys were in her purse, Bell took her purse, which also contained her cell phone and wallet. Piche and Bell then fled from the mall parking lot before law enforcement arrived. Further investigation led law enforcement to a location in south Minneapolis where Piche was taken into custody. The stolen vehicle was found a few blocks away from where Piche was arrested. On May 3, 2022, law enforcement located and arrested Bell.

This case is the result of an investigation conducted by the FBI, the Roseville Police Department, and the Minneapolis Police Department.

This case was prosecuted by Assistant U.S. Attorney Harry M. Jacobs.

ST. PAUL, Minn. – A Rochester man has been sentenced to 198 months in prison followed by 10 years of supervised release for possession with intent to distribute heroin and methamphetamine, announced United States Attorney Andrew M. Luger.

According to court documents, Erick Fontain Thomas, 41, was a large-scale heroin and methamphetamine dealer in the Rochester area, and he used numerous guns to protect his drug operation. On August 25, 2020, law enforcement officers executed a search warrant on Thomas’s Rochester residence. During the search, officers found 4.135 grams of heroin, 1.467 kilograms of methamphetamine, four loaded handguns, a loaded AR-15 style rifle, assorted ammunition and firearms accessories, drug cutting agents, digital scales, and a brick press. Officers also went to a local FedEx Office in Rochester and seized a package that Thomas had directed another individual to send to him at a California address. The package contained $68,740 in cash drug proceeds. On November 12, 2020, officers arrested Thomas in Rochester.

Thomas was sentenced today in U.S. District Court before Judge Wilhelmina M. Wright. On August 23, 2022, Thomas pleaded guilty to one count of possession with the intent to distribute heroin and methamphetamine.

This case was the result of an investigation conducted by the DEA and the Rochester Police Department.

Assistant U.S. Attorney Joseph S. Teirab prosecuted the case.

MINNEAPOLIS – Two Cottonwood County men have been charged in a superseding indictment with conspiring to defraud grain purchasers out of more than $46,000,000 by selling non-GMO grains falsely labeled as organic, announced U.S. Attorney Andrew M. Luger.

According to court documents, between 2014 and 2021, James Clayton Wolf, 65, a certified organic farmer, engaged in a scheme to defraud grain purchasers by selling them non-GMO grains falsely represented as organic. The charges allege that as part of his scheme, Wolf also grew conventionally farmed crops using chemical fertilizers and pesticides, in violation of organic farming standards, and provided grain purchasers with copies of his National Organics Program certification but withheld that the grains were not organically farmed. The superseding indictment charges that after Wolf’s organic farming certification was revoked in 2020, Adam Clifford Olson, 45, also a certified organic farmer, helped Wolf sell non-GMO crops falsely described as organic.

The superseding indictment charges Wolf and Olson with three counts of wire fraud and one count of conspiracy. Wolf, who was charged in the first indictment, made his initial appearance on July 22, 2022, in U.S. District Court before Magistrate Judge David T. Schultz. Olson is scheduled to make his initial appearance on January 26, 2023, before Magistrate Judge John F. Docherty.

This case is the result of an investigation conducted by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG), the FBI, and the U.S. Marshals Service, with assistance from the Cottonwood County Sheriff’s Office.

Assistant U.S. Attorneys Robert Lewis, Craig Baune, and Quinn Askew are prosecuting the case.

An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DULUTH, Minn. – A federal grand jury returned a seven-count indictment against a Duluth felon for methamphetamine trafficking and firearms violations, announced U.S. Attorney Andrew M. Luger.

According to court documents, on May 7, 2022, John Robert Rieck, 66, was caught with more than 50 grams of methamphetamine and a Bersa .380 caliber pistol. Months later, Rieck was found with more than 500 grams of methamphetamine and an unregistered short-barreled shotgun bearing no serial number.

Because Rieck has multiple prior felony convictions dating back to 1975, he is prohibited under federal law from possessing firearms or ammunition at any time.

Rieck is charged with two counts of possessing a firearm as a felon, two counts of possession with intent to distribute methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking offense, and one count of possession of an unregistered short-barreled shotgun. He made his initial appearance on January 11, 2023, in U.S. District Court before Magistrate Judge Leo I. Brisbois.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Duluth Police Department.

Assistant U.S. Attorney Lauren Roso is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A Waseca man has been sentenced to 24 months in prison for wire fraud, announced U.S. Attorney Andrew M. Luger.

According to court documents, from August 2016 to January 2019, Matthew Harold Schumacher, 46, owned and operated Travel Troops, LLC. Schumacher misappropriated commission payments meant for travel agents for his own personal use. After customers booked their travel arrangements with travel agents, the travel suppliers provided Schumacher with the commission payments due to respective independent travel agents who booked the travel. However, as part of Schumacher’s scheme to obtain and retain travel agents’ money for himself without their knowledge or consent, Schumacher routinely provided his travel agents with materially false and fraudulent information. Schumacher lied to travel agents that their commission money would be paid to them, when, in fact, he kept all of the victims’ money or, in other instances, despite refund requests, he provided some victims with commission payments that were late, incomplete, or both. 

According to court documents, Schumacher defrauded at least 36 travel agents nationwide of their primary income source. Schumacher deposited at least $160,000 in victims’ funds to his personal account which he used for personal travel expenses, cash withdrawals, retail purchases, car payments, credit card bills, entertainment tickets, and loan payments.  He also withdrew thousands of dollars in cash and spent at least $150,000 in victims’ money on his own travel expenses.

On June 30, 2021, Schumacher pleaded guilty to one count of wire fraud. Schumacher was sentenced yesterday in U.S. District Court by Senior Judge Ann D. Montgomery.

This case is the result of an investigation conducted by the FBI.

This case was prosecuted by Assistant U.S. Attorney Matthew S. Ebert.

MINNEAPOLIS – Two Detroit men have been sentenced to prison for their roles in a fentanyl trafficking operation targeting the Red Lake Reservation, announced U.S. Attorney Andrew M. Luger.

According to court documents, in March 2021, Douglas Edward McClendon, 32, and Christopher Douglas Richard, 41, conspired with others to distribute fentanyl pills, methamphetamine, and cocaine to individuals from the Red Lake Reservation. McClendon, Richard, and a third co-defendant Scot Lamont Watkins, 34, would obtain fentanyl and other drugs from suppliers in Detroit and then travel to Bemidji, Minnesota, to sell the drugs. In text messages between the defendants, Richard told his co-conspirators to come to Red Lake because there was “Hella money to be made” by selling fentanyl and emphasized that the reservation was “dry.”

According to court documents, the defendants conducted their drug distribution operation out of various Bemidji-area hotels. On March 2, 2021, law enforcement executed a search warrant at a hotel where the defendants were selling drugs. As a result of the search, law enforcement agents recovered more than 174 grams of fentanyl, 37 grams of methamphetamine, and other controlled substances. As law enforcement made entry into the hotel room, McClendon and Watkins fled while Richard flushed a significant amount of fentanyl down the toilet.

McClendon and Richard pleaded guilty to one count each of conspiracy to distribute fentanyl and other controlled substances. On September 7, 2022, Richard was sentenced to 60 months in prison and McClendon was sentenced yesterday to 63 months in prison. Both defendants were sentenced by U.S. District Judge Nancy E. Brasel. Watkins remains a fugitive from law enforcement.  

This case is the result of an investigation conducted by the Paul Bunyan Drug Task Force, the FBI Headwaters Safe Trails Task Force, the Red Lake Tribal Police Department, and the Minnesota Bureau of Criminal Apprehension.

This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino and Special Assistant U.S. Attorney Angelica Ramirez.

MINNEAPOLIS – An Aurora man has been charged with two counts of dealing firearms without a license, announced U.S. Attorney Andrew M. Luger.

According to court documents, from at least May 2019 through September 2022, Wayne Robert Danielson, 59, engaged in a regular pattern and practice of purchasing and reselling firearms predominantly to earn a profit. During this period, Danielson purchased dozens of firearms from three different Federal Firearms Licensees (FFLs) within Minnesota, including multiple purchases of identical firearms. For example, Danielson purchased five Taurus G2C 9mm pistols between March 2021 and January 2022.

On May 8, 2022, a 17-year-old was shot and killed in South St. Paul. A subsequent investigation revealed that the handgun used in the shooting had been purchased by Danielson on December 1, 2021.

Danielson is charged with two counts of dealing in firearms without a license. He previously made his initial appearance on a related complaint in U.S. District Court before Magistrate Judge Tony N. Leung.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dakota County Drug Task Force, the Minnesota Bureau of Criminal Apprehension, and the South St. Paul Police Department.

Assistant U.S. Attorney Sarah E. Hudleston is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A St. Paul man has been charged in a federal indictment for illegal possession of a firearm as an armed career criminal, announced U.S. Attorney Andrew M. Luger.

According to court documents, on October 4, 2022, Torrence Ricardo Finley, 33, was found in possession of a Taurus, G3X, 9mm semi-automatic handgun. Because Finley has prior felony convictions, including multiple domestic assault convictions, in Chisago, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

The indictment charges Finley with one count of possession of a firearm as an armed career criminal. He was arraigned yesterday in U.S. District Court before Magistrate Judge Tony N. Leung. Finley was ordered to remain in detention pending further court proceedings.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, and the Hennepin County Sheriff’s Department.

Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BEMIDJI, Minn. – A Red Lake man has been sentenced to 37 years in prison for fatally shooting a Red Lake Tribal Police Officer, announced United States Attorney Andrew M. Luger.

“The tragic and violent events of July 27, 2021, that claimed the life of Officer Ryan Bialke brought an incalculable loss to his family and to his community,” said U.S. Attorney Andrew Luger. “Although the 37-year sentence handed down today represents justice under the law, the harm can never be undone. We honor the memory of Officer Bialke and commend the officers of the Red Lake Tribal Police Department for their continued courage and commitment in serving their community.”

“When David Brian Donnell opened fire at officers on July 27, 2021, our community lost a husband, a father, a son, and a hero,” said Alvin M. Winston, FBI Special Agent in Charge, Minneapolis Division. Officer Bialke paid the ultimate price for his dedication to public safety, and today's sentence is a testament to the tireless efforts of our state and local partners and the Headwaters Safe Trails Task Force to ensure that violent criminals are held accountable for their heinous crimes. We are unwavering in our commitment to safeguarding our indigenous communities with our tribal partners, and our thoughts are with Officer Bialke's family and colleagues as they heal from this tragedy.”

According to court documents, on July 27, 2021, officers with the Red Lake Tribal Police Department (“RLTPD”) responded to a call to conduct a welfare check on David Brian Donnell, Jr., 30, at his residence in Redby, Minnesota. Five RLTPD officers responded to Donnell’s residence. Upon arrival, the officers found Donnell standing outside on the porch and attempted to have him walk towards the officers, but Donnell instead went inside the residence. Because Donnell had an active tribal warrant and was refusing to comply, the officers made the decision to breach the door. As soon as the door was breached, Donnell opened fire on the officers. Officer Ryan Bialke was immediately struck by gunfire and fell. Donnell continued shooting, firing several rounds from an Izhmash Saiga 7.62 caliber rifle at the four other officers on the scene. One RLTPD officer returned fire to allow the officers to escape into the woods. Donnell continued firing at the officers as they fled into the woods. Donnell fired at least 22 shots at Officer Bialke and the four other RLTPD officers. Officer Bialke succumbed to his injuries and died on the scene. Donnell then fled the scene, taking the rifle with him. Shortly thereafter, officers arrested Donnell at a nearby residence.

Donnell, who pleaded guilty on April 1, 2022, to one count of murder in the second degree, was sentenced today in U.S. District Court by Judge John R. Tunheim. During the hearing, Judge Tunheim stated that the 37-year sentence was “justified by a senseless crime,” and extended condolences to the family of Officer Bialke, who gave his life in the line of duty, “he was a fine man, I wish I had known him.”

This case was the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI Headwaters Safe Trails Task Force, the Minnesota Bureau of Criminal Apprehension (BCA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beltrami County Sheriff’s Office, and U.S. Customs and Border Protection.

Assistant U.S. Attorneys Melinda A. Williams and Joseph S. Teirab prosecuted the case.

ST. PAUL – A Minneapolis woman has pleaded guilty to running a drug money laundering operation on behalf of a large-scale fentanyl and marijuana dealer, announced U.S. Attorney Andrew M. Luger.

According to court documents, between December 2018 and August 2019, Phouvanh Keokaythinh, 37, laundered cash drug proceeds to conceal the drug trafficking activities of a group of gang members who operated as a drug trafficking organization that distributed heroin, fentanyl, and marijuana in and around the Twin Cities. Keokaythinh kept large amounts of cash drug proceeds for Lyndon Swarn, a large-scale fentanyl and marijuana dealer, at her family residence in Bloomington. Swarn’s drug income was generated from the production and sale of illegal fentanyl-laced Oxycodone pills, as well as the production and sale of large amounts of marijuana.

According to court documents, Keokaythinh used cash from Swarn’s drug proceeds to purchase a farm property in Ironwood, Michigan. Swarn and his associates used this property to illegally grow large amounts of marijuana. Keokaythinh and others laundered drug proceeds into a bank account owned by L&S Management LLC, a shell company used for the purchase, maintenance, and upkeep of the property in Ironwood. Keokaythinh also directed others to maintain a credit card that was used for Swarn’s personal spending and other expenses related to the drug trafficking conspiracy. Between January 2017 and March 2019, Keokaythinh and others used drug proceeds to make approximately $117,782.72 in payments on the credit card.

Keokaythinh pleaded guilty yesterday in U.S. District Court before Senior Judge Susan Richard Nelson to one count of concealment money laundering. A sentencing hearing will be scheduled at a later time. 

On June 2, 2022, Swarn was convicted in Hennepin County of aiding and abetting first-degree murder in relation to the New Year’s Eve 2019 kidnapping and murder of a local real estate agent. On May 17, 2021, Swarn was convicted in U.S. District Court for possession with intent to distribute more than 33,000 fentanyl-laced Oxycodone pills.

This case is the result of an investigation conducted by the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, and the Hopkins Police Department, with assistance from the Hennepin County Attorney’s Office.

Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case. 

ST. PAUL, Minn. – A Minneapolis man was sentenced to 150 months in prison followed by 15 years of supervised release for sex trafficking a minor, announced United States Attorney Andrew M. Luger.

According to court documents, in August 2020, Charles William Dexter III, 42, recruited a 14-year-old minor to engage in commercial sex acts for his benefit. Dexter arranged for these commercial sex acts using online advertisements, including ads posted on Megapersonals.com, to take place at hotels. He collected half of the proceeds from each of the appointments for commercial sex from the minor victim.

“January is National Human Trafficking Prevention Month and cases such as this represent our ongoing commitment to investigating and prosecuting those who exploit human beings, and in this case minor victims, for financial gain,” said U.S. Attorney Andrew Luger.

“Combatting sex trafficking is a top priority for Homeland Security Investigations (HSI) St. Paul,” said Jamie Holt, HSI St. Paul Special Agent in Charge. “Our agents will continue to focus on fostering safer communities by protecting and supporting sex-trafficking victims and bringing people like Dexter to justice.”

“The FBI is fully committed to combating human trafficking with our federal, state and local partners. Today’s sentence highlights the importance of this work in bringing justice to the victims and preventing human trafficking both in Minnesota and throughout the country,” said Alvin M. Winston, FBI Special Agent in Charge, Minneapolis Division.

Dexter, who pleaded guilty on September 6, 2022, to one count of sex trafficking of a minor, was sentenced today in U.S. District Court by Senior Judge Susan Richard Nelson.

This case was the result of an investigation conducted by Homeland Security Investigations, the Bloomington Police Department, and the FBI.

Assistant U.S. Attorneys Manda M. Sertich and Chelsea A. Walcker prosecuted the case.

MINNEAPOLIS – A federal grand jury returned an indictment against a Maple Grove man for an armed carjacking at a Blaine grocery store, announced U.S. Attorney Andrew M. Luger.

According to court documents, on September 24, 2022, Justin Michael Kittleson, 20, targeted two victims as they left the Cub Foods grocery store in Blaine and loaded groceries into their car. Kittleson approached one of the victims at the trunk of the car and pointed a gun at them. The second victim attempted to intervene, and a struggle ensued. The gun discharged, and the shot is believed to have grazed the second victim’s ear. Kittleson took control of the car and drove away. A 9MM shell casing was recovered at the scene by officers with the Blaine Police Department. After reviewing surveillance video footage and with the assistance from other members of the public, officers were able to identify and locate Kittleson. On September 29, 2022, law enforcement executed a search warrant at a residence associated with Kittleson and recovered two 9MM firearms (the same caliber as the casing found at the scene of the carjacking) and a hooded sweatshirt that matched the sweatshirt Kittleson was seen wearing in the surveillance footage.

Kittleson is charged with one count of carjacking and one count of using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence. Kittleson was initially charged by complaint and, yesterday, was indicted by a federal grand jury. Magistrate Judge Tony N. Leung ordered Kittleson to remain in detention pending further court proceedings.

This case is the result of an investigation conducted by the FBI and the Blaine Police Department.

Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A Rush City woman has been indicted for mail fraud and money laundering after participating in multiple schemes that defrauded individuals throughout the United States, announced U.S. Attorney Andrew M. Luger.

According to court documents, from 2016 through April 2022, Gayle Joyce Ferngren, 69, and others participated in a scheme to launder proceeds that were fraudulently obtained from victims throughout the United States, including the proceeds of romance fraud scams and schemes to defraud Federal Pandemic Assistance Programs.  After receiving the fraudulent proceeds, Ferngren kept a portion for herself and transmitted most of the funds to other scheme participants, including to individuals located overseas.  In total, Ferngren laundered at least $1.8 million in fraud proceeds. 

Ferngren is charged with four counts of mail fraud and one count of conspiracy to commit money laundering. She will make her initial appearance in U.S. District Court at a later date.

This case is the result of an investigation conducted by the U.S. Postal Inspection Service, the U.S. Department of Labor–Office of Inspector General, and the FBI.

Assistant U.S. Attorneys Matthew S. Ebert and Allison K. Ethen are prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS – A St. Paul woman has pleaded guilty to her role in a sex trafficking conspiracy after recruiting six minor victims to engage in commercial sex acts, announced United States Attorney Andrew M. Luger. 

According to court documents, from May 2020 through December 2020, Gisela Castro Medina, 20, conspired with co-defendant Anton Joseph Lazzaro, 32, to recruit and solicit six minor victims to engage in commercial sex acts.

According to court documents, in May 2020, Castro Medina met Lazzaro through the Seeking Arrangements website, which is known as a “sugar daddy” website. Lazzaro began communicating with Castro Medina and a minor victim and invited them to his condo at the Hotel Ivy in Minneapolis. Before arriving at the Hotel Ivy, Castro Medina told Lazzaro that the minor victim was only 16 years old. Lazzaro provided Castro Medina and the minor victim with alcohol and paid them $600 for commercial sex acts with him. Lazzaro continued to engage in commercial sexual activity with the minor victim and, on each occasion, Lazzaro paid her in the form of an envelope of cash. Castro Medina took half of each cash payment.

According to court documents, Castro Medina and Lazzaro continued to communicate via Snapchat, WhatsApp, and Signal. Lazzaro directed Castro Medina to use WhatsApp and eventually Signal because of the applications’ encryption and deletion features. Castro Medina used social media and her school, friend, and community networks to identify other minor girls for Lazzaro. Castro Medina would show Lazzaro photographs of minor girls and if Lazzaro “approved” Castro Medina would reach out to the minor and provide the minor’s contact information to Lazzaro. Castro Medina told the minors that Lazzaro was an older guy with a lot of money, and that he wanted to be a sugar daddy to younger girls.

Castro Medina admitted that, at the time of recruitment, she knew that the victims were minors and that Lazzaro paid the minor victims money in exchange for sex acts. Castro Medina also admitted that Lazzaro provided the minor victims with alcohol, vaping cartridges, food, smartphones, high-end purses, rooms in the Hotel Ivy, and transportation. For her role of identifying, recruiting, and introducing minors, Lazzaro compensated Castro Medina with cash and Venmo payments, as well as rent and utility payments for her apartment, tuition payments to the University of St. Thomas, car payments, travel expenses, and other items.

According to court documents, Castro Medina and Lazzaro discussed which of the minor victims spoke to law enforcement following the execution of federal search warrants in December 2020. Castro Medina admitted that in March 2021, she and Lazzaro aided and abetted one another to obstruct law enforcement by agreeing to pay off a 15-year-old victim to prevent her from talking to law enforcement about engaging in commercial sex with Lazzaro. Castro Medina picked up the minor victim at her place of employment, drove the minor victim around in her Mini Cooper, and provided her with hundreds of dollars in cash, gift cards, vapes, and alcohol from Lazzaro. Castro Medina also told the minor victim not to text Lazzaro anymore.

Castro Medina pleaded guilty today before Chief Judge Patrick J. Schiltz to one count of conspiracy to commit sex trafficking of minors and one count of obstruction. A sentencing hearing has not yet been scheduled.

This case is the result of a joint investigation by the FBI and the Minnesota Human Trafficking Investigators Task Force – led by the Bureau of Criminal Apprehension, with assistance from the Minneapolis Police Department, the West Hennepin Public Safety Department, and the Wright County Sheriff’s Office.

Assistant U.S. Attorneys Angela M. Munoz, Emily A. Polachek, and Laura M. Provinzino are prosecuting the case.

ST. PAUL, Minn. – A Chinese national was sentenced to 60 months in prison for cyberstalking a female Minnesota college student, and a concurrent 54 months’ imprisonment sentence for stealing the victim’s identity as a part of his cyberstalking scheme, followed by three years of supervised release, announced United States Attorney Andrew M. Luger. 

According to court documents, between January 2020 and November 2021, Ki Cheung Yau, 28, created multiple online accounts on various websites, including social media platforms, dating websites and pornography websites, using the name, photos, and personally identifying information of the victim. Yau used these accounts to communicate with strangers on the internet while posing as the victim. Yau falsely portrayed the victim on social media, dating and sexually focused websites as a young woman soliciting submissive or violent sexual relationships. 

Yau then communicated with strangers online and tried to help them locate the victim and follow through on his invitations for dominating and violent sexual encounters. According to court documents, on two separate occasions in January 2021, a man went to the victim’s residence and asked for the victim by name, presumably because he believed he was meeting the victim for a sexual encounter. Also, Yau’s cyberstalking resulted in strangers directly messaging the victim in response to explicit accounts and posts made by Yau posing as the victim. Further, the victim’s family and friends’ names, photos, and contact information were also included in Yau’s stalking scheme. The victim was forced to move to a new residence and change her phone number. 

On June 23, 2022, Yau pleaded guilty to one count of cyberstalking and one count of identity theft. As part of his plea agreement, Yau admitted to cyberstalking seven additional victims outside of Minnesota, in the United States, Canada and the United Kingdom from 2017 to 2021.

Yau was sentenced on December 16, 2022, before U.S. District Judge Wilhelmina M. Wright. During the sentencing hearing, Judge Wright stated that Yau’s “actions are predatory and purely evil,” showing “a disregard for the safety and well-being of the victims and disregard for the law.” In imposing the statutory maximum sentence for cyberstalking, Judge Wright reflected on the impact of Yau’s cyberstalking on victims and told Yau, “The injuries you cause do not heal easily.”

This case is the result of an investigation conducted by the FBI and the St. Paul Police Department.

Special Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.

MINNEAPOLIS – A Lino Lakes man has been sentenced to 289 months in prison followed by 10 years of supervised release for drug trafficking and firearms violations in connection to the December 2021 kidnapping and torture of a man, announced U.S. Attorney Andrew M. Luger.

According to court documents, on April 11, 2021, officers with the Worthington Police Department conducted a traffic stop of a vehicle driven by Jose Angel Chapa-Aguilera, 24. The traffic stop led to a search of the vehicle. Officers located a bag containing a loaded 9 mm semi-automatic pistol and more than two pounds of methamphetamine sealed inside four zip-lock bags in the spare tire compartment. 

According to court documents, on December 20, 2021, at his Brooklyn Park residence, Chapa-Aguilera confronted a man about a drug debt. During the confrontation, Chapa-Aguilera brandished a handgun, ordered the man to the ground, tied his hands behind his back, and proceeded to beat and torture the victim for hours using a heated knife and a pipe, due to a perceived drug debt. During the torture, Chapa-Aguilera demanded money from the victim. Before leaving the residence, Chapa-Aguilera barricaded the victim in a crawlspace under the house. The victim was later able to escape and contact law enforcement. The victim suffered extensive injuries, including numerous burns, broken ribs, a large laceration above his eye and required a blood transfusion. Law enforcement seized approximately three pounds of methamphetamine from Chapa-Aguilera’s residence during a search warrant executed shortly thereafter.

According to court documents, on January 7, 2022, law enforcement located Chapa-Aguilera driving a purple-camouflage Humvee in the Twin Cities. After a high-speed pursuit, officers disabled the vehicle and pulled Chapa-Aguilera from the Humvee. Officers also recovered from the vehicle a 9mm semi-automatic handgun and several 9mm rounds of ammunition.

Chapa-Aguilera was sentenced yesterday in U.S. District Court by Judge Joan N. Ericksen. Chapa-Aguilera pleaded guilty on September 6, 2022, to one count of possession of a firearm in furtherance of a drug trafficking crime and one count of possession with the intent to distribute methamphetamine.

This case is the result of an investigation conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hennepin County Violent Offender Task Force (VOTF), the Brooklyn Park Police Department, and the Worthington Police Department.

Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.

 

 

ST. PAUL, Minn. – A Brooklyn Center man was sentenced to 124 months in prison, followed by five years of supervised release for methamphetamine trafficking, announced United States Attorney Andrew M. Luger.

According to court documents, in May 2020, law enforcement began investigating Matthew Hines, 37, of Brooklyn Center and his co-defendant Chue Xiong, 39, of St. Paul. As part of a drug trafficking conspiracy, Hines and Xiong coordinated and facilitated the distribution of methamphetamine, as well as collected drug proceeds to send back to their supplier. On May 11, 2020, law enforcement observed Xiong leave Hines’s residence with a brown bag in his hand. Law enforcement conducted a traffic stop of Xiong’s vehicle and found approximately 1.4 kilograms of methamphetamine inside the brown bag, 614 grams of methamphetamine in the driver’s side door pocket and a 9mm handgun underneath the floor mat on the driver’s side. Xiong was also wearing a holster. On May 12, 2020, law enforcement executed a search warrant at Hines’s residence and vehicle. Inside Hines’s garbage they found a total of 419 grams of methamphetamine. Law enforcement also found an additional 2.6 kilograms of methamphetamine in the back seat of Hines’s vehicle, $24,434 in cash and several cell phones.

Hines pleaded guilty on May 6, 2021, to conspiracy to distribute methamphetamine.  He was sentenced yesterday in U.S. Court by Senior Judge Donovan W. Frank.

On March 30, 2021, co-defendant Xiong pleaded guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute methamphetamine. On May 26, 2022, Xiong was sentenced in U.S. District Court by Senior Judge Donovan W. Frank to 156 months in prison, followed by five years of supervised release.

This case was the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the Minnesota State Patrol.

Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.

 

MINNEAPOLIS – A Savage man has been arrested and charged in a federal criminal complaint for possession of a machine gun and for attempting to receive and possess unregistered destructive devices, specifically hand grenades, announced U.S. Attorney Andrew M. Luger.

According to court documents and a law enforcement affidavit, on September 27, 2022, the FBI received a tip from a concerned citizen reporting disturbing behavior of a 20-year-old man, later identified as River William Smith. 

The FBI Joint Terrorism Task Force investigation revealed evidence that Smith was preparing for a violent exchange with police. Smith stated he is “pro mass shooting,” sympathized with the Parkland school shooter, and expressed admiration for the individual charged with the recent shooting at a Colorado Springs LGBTQ nightclub. The FBI also discovered Smith had access to fully automatic rifles, handguns, suppressors, body armor and a Kevlar helmet. Smith stated that he was preparing to fight the police and was dedicated to dying in that fight.  Smith asked a government informant for grenades and an illegal part to convert his AR-15 style rifle into a fully automatic machine gun. On December 14, 2022, under supervision of law enforcement, a meeting between Smith and a government informant was arranged. At the meeting, Smith purchased three hand grenades and four auto sears. Smith was arrested by law enforcement.

Smith is charged with one count of possession of a machine gun and one count of attempt to receive and possess destructive devices. He appeared today in U.S. District Court before Magistrate Judge David T. Schultz. Smith was ordered to remain in detention pending further proceedings.

This case is the result of an investigation conducted by the FBI.

This case is being prosecuted by Assistant U.S. Attorneys Manda Sertich and Andrew Winter, and Department of Justice Trial Attorney Justin Sher.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. - A Saint Paul man was found guilty by a federal jury of conspiracy to distribute marijuana and possession with the intent to distribute marijuana, announced United States Attorney Andrew M. Luger.

Following a three-day trial before U.S. District Senior Judge Paul A. Magnuson, Danny William Gehl, Jr, 40, was convicted on December 14, 2022, of one count of conspiracy to distribute marijuana and one count of possession with the intent to distribute marijuana. A sentencing hearing has not yet been scheduled.

As proven at trial, from 2016 through June 2021, Danny William Gehl, Jr., along with co-conspirators Douglas Robert Finch, David William Gehl, Frank Joseph Kittleson, Patrick Thomas Maykoski and Daniel Richard Thomas conspired to distribute more than 1,000 kilograms of marijuana. The defendants and others were part of a drug trafficking operation (DTO) that shipped marijuana from California to Minnesota. Members of the DTO routinely sent shipping crates from a warehouse in St. Paul, Minnesota, to a warehouse in North Highlands, California. The DTO members would fly from Minnesota to California to purchase the marijuana, fill the crates with marijuana and then load them on a delivery truck for shipment back to Minnesota. Once the shipment arrived in Minnesota, the DTO members unpacked the crates, repackaged the marijuana, and placed the marijuana in large garbage bags and boxes for distribution. Members of the DTO then transported the marijuana from the Minnesota warehouse to various locations for storage and packaging pending distribution to customers.

This case is the result of an investigation conducted by Homeland Security Investigations, the IRS-Criminal Investigation Division, Ramsey County Sheriff’s Office, the Saint Paul Police Department, the BCA and the Violent Crime Enforcement Team.

Assistant U.S. Attorneys Thomas M. Hollenhorst and Albania Concepcion are prosecuting the case.

 

MINNEAPOLIS – A Duluth man has been indicted for wire fraud after pretending to operate a law firm and defrauding an individual out of thousands of dollars in legal fees, announced U.S. Attorney Andrew M. Luger.

“I am grateful for the diligence and the coordinated work of the FBI, the Duluth Police Department, and the St. Louis County Attorney’s Office for investigating the defendant’s long history of repeated and unrelenting fraudulent conduct,” said U.S. Attorney Andrew M. Luger.

According to court documents, between March and April 2022, Gale Allen Rachuy, 72, devised and executed a scheme to defraud an individual (Victim A) by falsely representing that he could provide legal services in connection with Victim A’s post-conviction motion in exchange for $10,000. Rachuy told Victim A that he operated Midwest Legal Service, a Duluth-area law firm, for more than 38 years and claimed to employ several attorneys, including a retired federal judge who previously served on the Seventh Circuit Court of Appeals (Judge A) and a retired Hennepin County District Court judge (Judge B).

According to court documents, on March 10, 2022, Rachuy sent a letter to Victim A on Midwest Legal Service letterhead falsely claiming that Judge A would assist in Victim A’s legal representation and enclosed a copy of a retainer agreement seeking a $2,500 payment. On March 15, 2022, Rachuy received the $2,500 retainer from Victim A. Shortly thereafter, Victim A became suspicious and confronted Rachuy because Victim A had not received a draft of the legal documents Rachuy had promised to file. Rachuy promised Victim A that he would promptly refund the money, but never did so. Instead, Rachuy continued to falsely assure Victim A that Judge A and Judge B were working on the case.

Rachuy is charged with one count of wire fraud. He made his initial appearance in U.S. District Court today before Magistrate Judge David T. Schultz. Rachuy was ordered detained pending a formal detention hearing scheduled for 1:30 pm on Monday, December 19, 2022, before Magistrate Judge Leo I. Brisbois.

This case is the result of an investigation conducted by the FBI, the Duluth Police Department, and the Hermantown Police Department, with assistance from the St. Louis County Attorney’s Office.

Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

MINNEAPOLIS– A Mounds View man has been sentenced to 24 months in prison followed by two years of supervised release and ordered to pay $6,058,980 in restitution for failing to pay payroll taxes for several years, announced U.S. Attorney Andrew M. Luger.

According to the plea agreement and other court documents, Larry Wallace Lindberg, 68, was a pharmacist and the CEO of Midwest Medical Holdings LLC, a Mounds View-based pharmaceutical and medical equipment company. As the owner and CEO of the company, Lindberg was responsible for filing tax returns and paying taxes on behalf of the company. Lindberg failed to pay the Internal Revenue Service (“IRS”) several hundred thousand dollars in federal payroll taxes each quarter. In all, Lindberg owes more than $6 million to the IRS.

Beginning in 2011, the IRS spent years attempting to collect on the tax debt. Lindberg entered into several installment agreements with the IRS in which he agreed to make regular payments towards the tax debt, but ultimately failed to make the payments and defaulted on each of the agreements. When the IRS attempted to collect on the tax debt, Lindberg took steps to evade the collection efforts by hiding his assets from the IRS. Among other things, Lindberg regularly diverted money from his company to other entities and used it to purchase real estate and other assets, and to fund his personal lifestyle. He also put assets in the name of his children, including an airplane, airplane hangar, and two vacation homes in Florida, in order to conceal his ownership and control from the IRS.

Lindberg pleaded guilty on April 21, 2022, to one count of tax evasion. Lindberg was sentenced today in U.S. District Court by Judge Katherine M. Menendez  

This case is the result of an investigation conducted by the IRS Criminal Investigation Division.

Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.

 

ST. PAUL, Minn. – A Las Vegas woman pleaded guilty today to one count of wire fraud, announced United States Attorney Andrew M. Luger.

According to court documents, from June 2020 through January 2022, Tequisha Solomon, 39, executed a scheme to fraudulently obtain pandemic assistance money from various states, including Minnesota’s Department of Employment and Economic Development (DEED) and California’s Employment Development Department (EDD).

As part of the fraud scheme, Solomon sought Unemployment benefits (UI) from states where she had no lawful basis to receive them.  For example, while Solomon resided in Minnesota and Nevada, she falsely claimed to California’s EDD that she worked and resided in Los Angeles, California.  As a result, California’s EDD paid Solomon at least $37,000 in periodic UI payments between approximately in 2020 and 2021, during which time she actually resided in Minnesota or Nevada.

Solomon also unlawfully sought to obtain UI benefits from multiple states simultaneously. For instance, in October 2020, Solomon fraudulently claimed UI benefits from the Illinois Department of Employment Security when she was actually residing in Minnesota and was already fraudulently receiving UI benefits from California’s EDD.  In March 2021, Solomon fraudulently applied for UI from Minnesota’s DEED, and concealed her fraudulent receipt of UI benefits from California and Illinois. 

In addition to fraudulently obtaining pandemic-related benefits for herself, Solomon also assisted others to obtain pandemic-related funds in exchange for a fee, as much as $2,000.  Solomon submitted over 200 false and fraudulent applications for UI benefits on behalf of others.    

In total, Solomon fraudulently applied for $7,149,032 in pandemic-related funds and caused the United States and multiple state agencies to pay out at least $4,708,191 in the form of fraudulent UI benefits and small business loan proceeds.

Solomon pleaded guilty today to one count of wire fraud in U.S. District Court before Judge Eric C. Tostrud. A sentencing hearing has not been scheduled yet.

This case is the result of an investigation conducted by the FBI, the U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service, with assistance from the St. Paul Police Department and the California Employment Development Department.

Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.

MINNEAPOLIS – A St. Paul man has been sentenced to 240 months in prison, followed by five years of supervised release, for distribution of a drug analogue, possession with intent to distribute fentanyl, and illegally possessing firearms as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, in March 2021, the Minnesota Department of Corrections (“DOC”) initiated an internal investigation into the introduction of narcotics into multiple DOC facilities, including Stillwater, Oak Park Heights, Faribault, and Rush City prisons. Investigators identified Walter Davis, a/k/a “Disney,” 40, as the source. On April 12, 2021, Davis attempted to mail six letters to DOC inmates that contained news articles printed on high-quality Strathmore cotton paper soaked in MDMB-4en-PINACA, a synthetic cannabinoid substance which produces hallucinogenic effects when consumed. Investigators intercepted and seized the letters. Investigators obtained search warrants for two residential locations Davis frequented. Following a search of the first location, Davis’s primary residence in Eagan, investigators recovered two baggies of fentanyl, $3,000 in cash, digital scales, and a loaded Smith and Wesson .38 caliber revolver. A search of the second location, an apartment in Maplewood, yielded over 400 grams of fentanyl, digital scales, a spray bottle containing MDMB-4en-PINACA, a package of Strathmore cotton paper, and a loaded Rossi .357 caliber Magnum revolver.

Davis was sentenced on Friday by U.S. District Court Judge Wilhelmina M. Wright. On June 15, 2022, Davis went to trial before U.S. District Judge Wilhelmina M. Wright. On June 17, 2022, three days into the trial, Davis pleaded guilty to all counts, including one count of attempted distribution of a controlled substance analogue, one count of possession with intent to distribute fentanyl, and two counts of possessing a firearm as a felon.

This case is the result of an investigation conducted by the United States Postal Inspection Service and the Minnesota Department of Corrections.

Assistant U.S. Attorneys Allison K. Ethen, Lauren O. Roso, and Ruth S. Shnider prosecuted the case.

ST. PAUL, Minn. – A federal jury convicted a St. Paul man of possession with intent to distribute cocaine, announced U.S. Attorney Andrew M. Luger.

Following a four-day trial before U.S. District Judge Wilhelmina M. Wright, Hugo Escudero, 45, was convicted on December 9, 2022, of one count of possession with intent to distribute cocaine. A sentencing hearing will be scheduled at a later time.

According to the evidence presented at trial, on September 22, 2021, Escudero was arrested in the parking lot of a Home Depot in St. Louis Park while attempting to sell one kilogram (2.2 lbs.) of cocaine for $38,000. Law enforcement also recovered approximately 13.5 kilograms (30 lbs.) of cocaine at two properties belonging to Escudero.

This case was the result of an investigation conducted by the West Metro Drug Task Force and the Drug Enforcement Administration.

This case is being prosecuted by Assistant U.S. Attorneys Nathan H. Nelson and Matthew D. Forbes.

MINNEAPOLIS – A Twin Cities house-flipper was sentenced to 58 months in prison, followed by two years of supervised release, and ordered to pay $1,661,407.50 in restitution, announced U.S. Attorney Andrew M. Luger.

According to court documents, from 2018 through December 2020, Suzanne Griffiths, 46, executed a scheme to defraud individuals by soliciting investments in her Minnesota-based house-flipping businesses. Griffiths was active in the house-flipping community and frequently attended seminars of a national real estate investment coaching program. Through these seminars, Griffiths networked with other individuals and pitched her own house-flipping businesses: Level 5 Properties, LLC; 45 North Investment Properties, LLC; and Our Town Properties. Griffiths frequently contacted seminar attendees about potential investment opportunities in properties owned by her companies. Griffiths promised investors various manners of repayment in return for investments. Griffiths frequently made material misrepresentations about the status of real estate projects, failed to take promised action, falsified documents, and misappropriated investments for her own use.

According to court documents, in November 2018, Griffiths solicited a $100,000 investment from an investor to finance the renovation of a property. Griffiths promised the investor that they would hold second position on the mortgage and falsely assured the investor that the necessary mortgage documents had been filed with the appropriate county. In reality, Griffiths never filed the documents and, as a result, the investor lost their entire investment.

According to court documents, in July 2020, Griffiths solicited a $70,000 investment from another investor. Months later, to facilitate the solicitation of a second investment for renovations of a property, Griffiths provided the investor with information, printed on title company letterhead, demonstrating the potential of the requested investment. The investor later contacted the title company and learned that Griffiths had altered the information provided by the title company to intentionally omit numerous preexisting encumbrances on the property. The investor lost their entire $70,000 from the first investment.

Griffiths was sentenced today in U.S. District Court by Judge Joan N. Ericksen. Griffiths pleaded guilty to one count of wire fraud and one count of money laundering on June 16, 2022.

This case is the result of an investigation led by IRS – Criminal Investigations and the United States Postal Inspection Service.

Assistant U.S. Attorney Jordan L. Sing prosecuted the case.

 

MINNEAPOLIS- A Kansas City man has pleaded guilty to conspiracy to commit mail fraud in connection to a $300 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims announced, U.S. Attorney Andrew M. Luger.

According to court documents, from 2000 through February 2020, Russell Jason Rahm, 52, participated in a telemarketing fraud scheme involving fraudulent magazine subscription sales. Rahm was the owner and Chief Executive Officer of several Kansas-based companies involved in the fraudulent scheme, including Subscription Ink Co. and Millennium Marketing. As part of the scheme, Rahm’s companies, along with other companies, used fraudulent sales scripts to defraud victim-consumers, many of whom were elderly or otherwise vulnerable, out of hundreds or even thousands of dollars. The fraudulent sales scripts were designed to induce consumers, through a series of lies and misrepresentations, into making large or repeat payments. Rahm’s companies also handled collections for those victim-consumers who did not pay or who challenged the resulting charges as fraudulent. Rahm’s companies received, reviewed, and responded to complaints from victim-consumers to state Attorney General’s offices and the Better Business Bureau.

According to court documents, Rahm and his companies also provided sales leads and handled order management, billing, and collections for other companies involved in fraudulent magazine sales in exchange for a percentage of the revenue received from victim-consumers.

Rahm and his companies defrauded thousands of victims and collected approximately $103 million from victims as a result of this fraudulent scheme.

In total, 60 defendants were charged, in multiple indictments, for their roles in this scheme that targeted more than 150,000 elderly and vulnerable victims out of $300 million. 

Rahm pleaded guilty today to one count of conspiracy to commit wire fraud in U.S. District Court before Judge John R. Tunheim. A sentencing hearing has not been scheduled yet.

Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Melinda A. Williams, and Matthew S. Ebert are prosecuting the case.

 

ST. PAUL, Minn.– A former attorney from Willmar has been sentenced to 18 months in prison, followed by one-year of supervised release and required to pay a $20,000 fine for fraudulent concealment of bankruptcy assets, announced United States Attorney Andrew M. Luger. 

According to court documents, on November 3, 2015, Gregory Ronald Anderson, 63, a former attorney, prepared and filed a voluntary bankruptcy petition on behalf of his client, James Alan Rothers. Upon the filing of the petition, Anderson knew that Rothers’ assets, wherever located, became property of a “bankruptcy estate” to be used to pay Rothers’ creditors. Anderson also filed a set of Rothers’ bankruptcy schedules in which Rothers was required to disclose, under penalty of perjury, the full extent and value of all Rothers’ assets as of November 3, 2015. As Rothers’ bankruptcy attorney, Anderson had to certify that the petition filed with the bankruptcy court was true and accurate.  

Prior to the bankruptcy filing, Anderson created fake liabilities to create the appearance that Rothers was insolvent when, in fact, Rothers could easily have paid all his creditors. Specifically, Anderson arranged to have a fictitious lawsuit filed against Rothers, and then instructed Rothers to default in that lawsuit. This created a judgment of approximately $608,000 against Rothers to further the appearance that he was insolvent.  Anderson also created documents that made it appear that an Iowa company had loaned $240,000 to Rothers and that Rothers had to repay this loan.  This loan was fabricated and created to bolster the appearance of Rothers’ insolvency.

Nevertheless, when Anderson filed Rothers’ bankruptcy petition on November 3, 2015, he certified that he had no knowledge that the information in Rothers’ schedules was incorrect.  But, despite this certification, Anderson knew about the above-outlined efforts to make Rothers appear insolvent.  Anderson also knew that Rothers had purposefully failed to disclose on his bankruptcy schedules $100,000 in gold coins, $686,000 on deposit in bank accounts for two companies, and $455,484 in uncashed checks. In fact, Anderson helped Rothers open one of the concealed bank accounts and received portions of his legal fees from the other.

Anderson was sentenced on December 7, 2022, in U.S. District Court by Judge Eric C. Tostrud. On August 8, 2022, Anderson pleaded guilty to one count of fraudulent concealment of bankruptcy asset. Anderson’s plea agreement also required his voluntary disbarment from the practice of law.

On November 7, 2019, James Alan Rothers pleaded guilty to one count of fraudulent concealment of bankruptcy assets in U.S. District Court before Judge Susan Richard Nelson. Rothers will be sentenced at 10:30 a.m. on December 13, 2022.

This case was the result of an investigation conducted by the FBI.

Assistant U.S. Attorney Jordan L. Sing and former Assistant U.S. Attorney David J. MacLaughlin prosecuted the case.

 

 

 

ST PAUL, Minn. – A Saint Paul man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to the defendant’s guilty plea and court documents, on July 28, 2022, Marquese Lamont Redmon, 28, was in possession of a 9mm Smith & Wesson semi-automatic pistol with an extended drum magazine loaded with 43 bullets. Officers with the Minneapolis Police Department responded to a report of shots fired near the downtown Minneapolis intersection of 1st Avenue North and 4th Street North. Police reviewed surveillance footage before and after the reported gunfire and observed Redmon holding the firearm before and after the incident. The surveillance footage also showed Redmon exiting an SUV after the reported gunfire, being handed the gun from the driver of the SUV, after which Redmon ran a short distance away and discarded the gun. Because he has multiple prior felony convictions in Ramsey County, Redmon is prohibited under federal law from possessing firearms or ammunition at any time.

Redmon pleaded guilty yesterday in U.S. District Court before Judge Eric C. Tostrud to one count of felon in possession of a firearm. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.

Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.

 

ST. PAUL, Minn. – A Beltrami County man has been sentenced to 144 months in prison followed by five years of supervised release for his role in a methamphetamine trafficking conspiracy, announced United States Attorney Andrew M. Luger.

According to court documents, in September 2019 law enforcement commenced an investigation of a drug trafficking organization distributing significant quantities of methamphetamine in northern Minnesota.  As part of this investigation, police conducted a traffic stop in Park Rapids of a tow truck being operated by Trent Michael Holden, 52, of Solway on February 16, 2020. A search of the tow truck revealed one pound of methamphetamine, $34,852, and a firearm. Holden was arrested but later released from custody. On March 27, 2020, officers observed Holden returning to Bemidji from the Twin Cities where he was suspected of meeting with his drug source of supply. Officers stopped Holden, who appeared to be intoxicated, and recovered from his vehicle five pounds of methamphetamine, 21 MDMA pills, a firearm, a box of ammunition, and $4,096 in cash. Holden was charged in state court and later released from custody. On September 28, 2021, officers observed Holden driving a tow truck and hauling a Dodge Neon. A subsequent search of the tow truck and the Dodge Neon revealed approximately 2.8 pounds of methamphetamine and $4,010 in cash.

Holden was sentenced yesterday in U.S. District Court before Judge Wilhelmina M. Wright. On May 11, 2022, Holden pleaded guilty to one count of conspiracy to distribute methamphetamine.

This case was the result of an investigation conducted by the Paul Bunyan Drug Task Force, FBI Headwaters Safe Trails Task Force, Hubbard County Sheriff’s Office, Beltrami County Sheriff’s Office, Minnesota State Patrol, Minnesota Bureau of Criminal Apprehension, and U.S. Customs and Border Protection.

Assistant U.S. Attorney Andrew S. Dunne prosecuted the case.

MINNEAPOLIS – A Minneapolis man has been charged in a federal criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents, on November 28, 2022, Minneapolis Police officers responded to a call that a person at 19 Bar, located near downtown Minneapolis, had pulled out a gun after being asked to leave. When officers arrived, several people pointed at a man, who was later identified as Conell Walter Harris, 29.  Harris resisted arrest and tried to reach into the pocket of his hooded sweatshirt. Officers recovered a stolen .45 caliber Glock model 30 pistol from Harris’ pocket. Officers spoke to bar employees and customers and learned that Harris had become upset after an employee asked to see his identification, which Harris refused to show. The employee then asked Harris to leave the bar. Harris became combative and pulled out a pistol. An employee attempted to deescalate the situation but Harris became more aggressive and made multiple threatening statements. Harris then left for a short time but returned to the bar before law enforcement arrived.

Harris is charged in a criminal complaint with felon in possession of a firearm. He made his initial appearance today in U.S. District Court before Magistrate Judge Tony N. Leung. Harris was ordered to remain in custody pending a formal detention hearing scheduled for December 5, 2022. 

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.

Assistant U.S. Attorney Samantha H. Bates is prosecuting the case.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

ST. PAUL, Minn. – A Chanhassen psychologist has pleaded guilty to fraudulently billing for counseling services never actually rendered, announced United States Attorney Andrew M. Luger. 

According to court documents, Charles Howard Jorenby, 57, was a licensed psychologist and owner of Life Dynamics, Inc., a counseling center located in Prior Lake. From January 2013 through February 2020, Jorenby orchestrated a scheme to defraud Blue Cross Blue Shield Minnesota (BCBS) and the Shakopee Mdewakanton Sioux Community (SMSC), which is responsible for funding the account that BCBS draws from to pay health care costs for tribal members. Jorenby submitted fraudulent bills to BCBS for counseling services he claimed to have provided to at least 29 SMSC members. In reality, Jorenby never provided counseling services to those individuals, and he used their names and dates of birth without their knowledge or permission. As a result of his false billing practices, SMSC suffered a loss of at least $555,000.

As part of his guilty plea, Jorenby also admitted that in 2017, he submitted an additional fraudulent insurance claim to State Farm Insurance following a fire at his business office. In that claim, Jorenby knowingly provided false information regarding lost income, inflating his claimed income to include earnings associated with his fraudulent BCBS billings. Jorenby received a settlement of $104,930, all or part of which is a product of his misrepresentation.

Jorenby pleaded guilty on November 29, 2022, before Senior Judge Susan Richard Nelson to one count of health care fraud. A sentencing hearing has been scheduled for April 27, 2023.

This case was the result of an investigation conducted by Homeland Security Investigations and the Minnesota Commerce Fraud Bureau.

Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.

MINNEAPOLIS – A North Dakota man has been charged in a criminal complaint with threatening to murder a United States official, announced U.S. Attorney Andrew M. Luger.

According to court documents, on September 14, 2018, Robert Philip Ivers, 69, of West Fargo, North Dakota, was convicted by a federal jury of threatening to murder a federal judge and interstate transmissions of threats and was sentenced to a prison term of 18 months, followed by three years of supervised release. On August 1, 2019, Ivers was released from Bureau of Prisons custody and began his term of supervised release under the supervision of a Unites States Probation Officer.

According to court documents, on September 1, 2020, Ivers left a profanity-laced voicemail on his probation officer’s telephone, which constituted a violation of the terms of Ivers’ conditions of supervised release. On November 17, 2022, during a revocation hearing, Ivers was sentenced to additional prison time and additional supervised release time. The conditions of Ivers’ supervised release included the immediate surrender his Minnesota driver’s license, and that he maintain appropriate communication with probation officers. At the conclusion of the hearing, Ivers was escorted to an interview room where he quickly became agitated and pounded his fists on a table, broke a chair leg, and threw his paperwork while continuously screaming the word “hate.” When Ivers left the room, he extended his middle fingers at one of the probation officers and yelled “I’m going to get some [expletive] to [expletive] kill you!”

Ivers is charged with one count of threatening to murder a United States official. He is scheduled to make his initial appearance later today in U.S. District Court before Magistrate Judge Tony N. Leung.

This case is the result of an investigation conducted by the United States Marshals Service.

This case is being prosecuted by Assistant U.S. Attorneys Lisa M. Kirkpatrick and Allison K. Ethen.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. – A Minneapolis man has been sentenced to 120 months in prison followed by three years of supervised release for making threats against Hennepin County employees and illegally possessing a firearm as a felon, announced United States Attorney Andrew M. Luger.

According to court documents, on June 24, 2021, the Hennepin County District Court issued an arrest warrant for Peter Robert Berry, 60, after he failed to appear in court for a hearing. Berry called an employee of Hennepin County Community Corrections to ask questions about his court appearance. During the call Berry became angry and began yelling and threatened to “shoot up the place.” That same day, Berry left a voice message for a Hennepin County Probation Officer in which Berry demanded a call back before he starts “killing everybody.” On June 25, 2021, Berry called a Hennepin County Service Center employee who informed him of the active warrant for his arrest due to his failure to appear in court. Upon learning about the warrant, Berry stated that he was going to “come down and kill everybody, all the judges, clerks, and deputies.” On June 29, 2021, Berry left a voice message for a Hennepin County Public Defender in which Berry expressed his dissatisfaction with the representation he received in his criminal case and threatened that people were going to die and stated that he knew where the public defender lived.

According to court documents, on July 10, 2020, and on April 7, 2021, Berry unlawfully possessed three firearms, including a Beretta .25 caliber semi-automatic pistol, a Smith and Wesson 9 mm pistol, and a Diamondback DB15 rifle. Because Berry has prior felony convictions in Hennepin, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

Berry was sentenced today in U.S. District Court before Judge Eric C. Tostrud. On June 22, 2022, Berry pleaded guilty to one count of possessing a firearm as a felon and one count of interstate transmission of a threat.

This case is the result of an investigation conducted by the FBI, the Hennepin County Sheriff’s Office, and the Minneapolis Police Department.

Assistant U.S. Attorney Allison K. Ethen prosecuted the case.

MINNEAPOLIS – A Wisconsin man has been indicted for orchestrating a $35 million bank fraud scheme, announced U.S. Attorney Andrew M. Luger.

According to court documents, between 2020 and August 2022, Matthew Thomas Onofrio, 31, of Eau Claire, devised and executed a scheme to defraud multiple federally-insured banks including MidCountry Bank headquartered in Bloomington. As part of his scheme, Onofrio operated a business entity called Northwoods Management LLC which he used to market a real estate investing program for investors to acquire commercial properties. Onofrio allegedly engaged in several fraudulent acts as part of the scheme, including causing false information to be submitted to lenders financing investors’ real estate purchases and altering purchase agreements to support higher appraisals of the properties.  According to the indictment, Onofrio withheld information from the lenders, including the fact that he was lending money to the investors to help them purchase the properties and would temporarily wire funds to investors’ accounts to create the appearance that they had more available assets than they in fact had. The charges seek forfeiture of more than $35 million seized in the investigation.

Onofrio is charged with three counts of bank fraud. On November 23, 2022, Onofrio made his initial appearance in U.S. District Court before Magistrate Judge Tony N. Leung.

This case is the result of an investigation conducted by the FBI, the IRS, and the Federal Deposit Insurance Corporation – Office of Inspector General.

This case is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. – Sumalee Intarathong has pleaded guilty to her role in a large-scale international Thai sex trafficking organization, announced United States Attorney Andrew M. Luger.

“Today’s guilty plea marks the final conviction in a years-long international sex trafficking prosecution resulting in 37 convictions,” said U.S. Attorney Andrew M. Luger. “Ms. Intarathong, worked directly with others at the highest levels in the organization to victimize hundreds of vulnerable women for her own financial gain.”

According to court documents, the criminal organization conspired to make money by compelling hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, Intarathong, 61, served as a boss/trafficker for the organization. Each trafficked victim was “owned” by Intarathong or another boss/trafficker, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. Intarathong and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.

According to court documents, Intarathong and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.

According to court documents, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere.

“I’m proud of the HSI agents and law enforcement partners who helped bring Intarathong to justice,” said HSI Saint Paul Special Agent in Charge Jamie Holt. “Intarathong’s heinous acts victimized countless individuals and their families. HSI will continue the work necessary to dismantle and destroy these human trafficking organizations while providing care and support to the victims.”

“For more than seven years, Ms. Intarathong had been responsible for sex trafficking across the nation,” said Justin Campbell, IRS CI Special Agent in Charge, Chicago Field Office. “And like many criminals she tried to hide her ill-gotten gains through legitimate purchases – such as vehicles and real estate. Fortunately for American taxpayers, IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds.”

Intarathong was arrested in Belgium in August 2016 and remained in custody until she was extradited to the United States in February 2021. Intarathong pleaded guilty earlier today before Senior Judge Donovan W. Frank to one count of conspiracy to commit sex trafficking and one count of conspiracy to engage in money laundering. A sentencing hearing has not yet been scheduled.

This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office, and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium.

Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.

MINNEAPOLIS – A Red Lake man has been sentenced to 144 months in prison followed by three years of supervised release for a 2020 murder that took place on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.

According to court documents, on September 12, 2020, Ralph Edward Cloud, Jr., 38, killed his cousin, Allen Smith, in Smith’s home. Concerned about a relationship between his wife and Smith, Cloud walked several miles to Smith’s residence and attacked him, using a metal cabinet and its drawers to beat Smith to death.

Cloud was sentenced today in U.S. District Court before Senior Judge Michael J. Davis. On July 14, 2022, Cloud pleaded guilty to one count of murder in the second degree.

This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.

Assistant U.S. Attorneys Emily A. Polachek and Deidre Y. Aanstad prosecuted the case.

MINNEAPOLIS– A Minneapolis tax preparer has pleaded guilty to federal tax violations, announced United States Attorney Andrew M. Luger. 

According to court documents, Sue Yang, 48, of Circle Pines, operated a tax preparation business in Minneapolis. Yang participated in the IRS’s e-file program, a specialized program the IRS offers to qualified tax preparers, and was assigned a unique Electronic Filing Identification Number (known as an “EFIN”). In 2010, the IRS conducted a periodic suitability review of Yang and found that he failed to file a 2009 personal income tax return and that he owed substantial federal income taxes from tax years 2005 through 2008. The IRS notified Yang repeatedly that his failure to resolve his tax obligations would result in sanctions, including suspension of his EFIN or his expulsion from the IRS e-file program. In August 2012 Yang was suspended from the IRS e-file program and was no longer authorized to electronically file tax returns.

From August 2012 through April 2022, despite his suspension from the e-file program, Yang operated surreptitiously as an e-filing tax preparer. Yang disguised his unauthorized participation in the e-file program by enlisting others to obtain unique EFINs, which Yang then used to file thousands of tax returns electronically on behalf of his customers. These tax returns were electronically transmitted to the IRS purporting to have been prepared by other individuals. From 2012 through 2020, Yang impeded the IRS’s suitability review and circumvented his e-file suspension by electronically filing more than 26,000 tax returns using misappropriated EFINs.

From 2018 through 2021, Yang received approximately $765,000 in compensation from working as a tax preparer but, in order to further obscure his unauthorized conduct, he did not report any income related to his tax preparation business. Yang’s unlawful conduct resulted in a combined federal tax loss of approximately $214,297.

Yang pleaded guilty today before Judge Eric C. Tostrud to one count of filing a false federal income tax return and one count of corruptly impeding and obstructing the administration of the internal revenue laws. A sentencing hearing has not yet been scheduled.

This case was jointly investigated by IRS – Criminal Investigations and the Treasury Inspector General for Tax Administration (TIGTA).

Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.

MINNEAPOLIS – A Kansas man was sentenced to 77 months in prison followed by three years of supervised release for an early morning armed robbery of a Menards store in West St. Paul, announced United States Attorney Andrew M. Luger.

According to court documents, on September 27, 2021, Cornelius Graham, 61, of Kansas City, Kansas, went to the Menards store in West St. Paul and hid inside the store until it closed. Early on the morning of September 28, 2021, Graham confronted the store manager as he was opening the store for the day. Graham brandished a firearm and took cash from the store manager.

Graham was sentenced yesterday in U.S. District Court before Senior Judge Ann D. Montgomery. On June 1, 2022, Graham pleaded guilty to one count of interference with commerce by robbery. Because Graham was on supervised release for separate robbery convictions in the District of Kansas, Graham received an additional sentence of 23 months, increasing his total sentence to 100 months in prison.

This case was the result of an investigation conducted by the FBI and the West St. Paul Police Department.

Assistant U.S. Attorney David P. Steinkamp prosecuted the case.

MINNEAPOLIS – A federal criminal complaint has been filed against a Woodbury man charging him with illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents and a law enforcement affidavit, on October 18, 2022, law enforcement observed what appeared to be a narcotics transaction between Jason Steven Kearns, 38, and the occupant of a vehicle parked outside of Kearns’s Woodbury residence. Law enforcement initiated a traffic stop of the vehicle, searched it, and found approximately one half-pound of methamphetamine. Following the traffic stop, law enforcement obtained and executed a search warrant at Kearns’s home. As officers approached the residence, Kearns fled on a motorcycle, carrying what appeared to be a package of methamphetamine in his jacket. Officers attempted to stop Kearns, but he was able to escape. Law enforcement recovered three firearms from the residence.

On November 14, 2022, law enforcement encountered Kearns in the driver’s seat of a truck outside of a restaurant in Woodbury. The officers called for backup and two Woodbury Police squad vehicles arrived and attempted to stop Kearns by activating their lights. One squad vehicle stopped in front of Kearns’s truck and the other approached from the side. Kearns accelerated his truck forward, ramming the police vehicle head-on. Kearns reversed his truck and drove into a curb and was pinned by the two police vehicles. Kearns exited his vehicle and ran from officers on foot to a parking lot across the street. Officers saw that Kearns had his right hand on what appeared to be a semiautomatic pistol. Officers drew their firearms and issued multiple commands to Kearns to drop his firearm. Kearns continued walking through the parking lot and then stopped and knelt down, still refusing to drop the firearm. Kearns stated to officers that he had a firearm in his hand. Eventually, Kearns dropped the firearm and surrendered and was taken into custody. The firearm, a Smith & Wesson 9mm semiautomatic pistol, was loaded with a round chambered and 11 rounds in the magazine. Kearns was also carrying a large knife on his person. After searching Kearns’s truck, officers recovered quantities of methamphetamine, hypodermic needles, and a digital scale.

Because Kearns has multiple prior felony convictions including assault and armed robberies, he is prohibited under federal law from possessing firearms or ammunition at any time.

Kearns is charged with one count of possession of firearms as a felon. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Tony N. Leung. He was ordered to remain in custody pending a formal detention hearing on November 28, 2022.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington County Drug Task Force, and the Woodbury Police Department.

Assistant U.S. Attorneys Emily A. Polachek and Thomas Calhoun-Lopez are prosecuting the case.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MINNEAPOLIS –Twin brothers Quantez Demarco Ward and Cortez Demario Ward, age 19, have pleaded guilty to illegal possession of a firearm and illegal possession of ammunition, respectively, announced United States Attorney Andrew M. Luger.

According to court documents, in January of 2022, the brothers were both charged in Hennepin County District Court for possession of machineguns after they were caught in possession of firearms that had each been modified with auto sears. An auto sear, also known as a switch, is a device used to convert a semi-automatic firearm into a fully automatic firearm and is considered a machinegun under federal law. In May, both Cortez and Quantez Ward pleaded guilty to their Hennepin County charges and were released on terms of probation.

On May 6, 2022, the brothers were pulled over by the Maple Grove police department. During that traffic stop, Cortez Ward was in possession of a Polymer 80 pistol with an extended magazine loaded with 19 rounds of ammunition on his person. On July 19, 2022, law enforcement executed a federal arrest warrant at the Ward brothers’ residence. Inside, law enforcement found multiple firearms, including a 9mm Ruger rifle, a H&K .22 caliber rifle and a Pioneer 7.26 mm Pistol.

Yesterday, Quantez Ward pleaded guilty in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of possession of a firearm as a felon related to the firearms recovered on July 19, 2022. On October 25, 2022, Cortez Ward pleaded guilty in U.S. District Court before Senior Judge David S. Doty to one count of possession of ammunition as a felon arising from the May 6, 2022, traffic stop. Sentencing dates will be scheduled at a later time.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Minneapolis Police Department, and the Maple Grove Police Department.

These cases are being prosecuted by Assistant U.S. Attorney Lindsey Middlecamp.

MINNEAPOLIS – A federal jury convicted an Olmsted County man for conspiring to distribute controlled substances and for possession with intent to distribute cocaine after being arrested with four kilograms of cocaine in his rental car, announced United States Attorney Andrew M. Luger.

Following a four-day trial before U.S. District Judge Nancy E. Brasel, Christopher Allen Edwards, 39, was convicted on November 17, 2022, of one count of conspiracy to distribute controlled substances, specifically, cocaine, heroin, fentanyl, and methamphetamine, and one count of possession with intent to distribute cocaine. A sentencing hearing will be scheduled at a later time.

According to the evidence presented at trial, in early 2021, law enforcement received information that Edwards was dealing drugs in the Rochester area. Law enforcement determined that Edwards and his co-conspirator, Chloe Michelle Johnson, 25, were dealing a variety of drugs throughout Rochester and Southeastern Minnesota, from May 2021 through October 16, 2021, the date of their arrest.

In October 2021, law enforcement tracked Edwards’ rental vehicle as he traveled to Austin, Texas, and back to Minnesota in a quick turnaround road trip. On October 16, 2021, law enforcement stopped Edwards and Johnson in Edwards’ rental car once they drove back into Olmsted County. Edwards was caught with four kilograms of cocaine in his backpack in his rental car. That same day, law enforcement executed search warrants on Edwards’ and Johnson’s residences and found various amounts of cocaine packaged for distribution, heroin, fentanyl, and methamphetamine.

On May 12, 2022, Johnson pleaded guilty to her role in the drug trafficking conspiracy. She is scheduled to be sentenced on February 9, 2023.

This case is the result of an investigation conducted by the Olmsted County Sheriff’s Office, the Southeast Minnesota Violent Crime Enforcement Team, and the Drug Enforcement Administration.

Assistant U.S. Attorney Nathan H. Nelson and Special Assistant U.S. Attorney Hillary A. Taylor tried the case.

MINNEAPOLIS- A Rochester drug trafficking ringleader has pleaded guilty to conspiracy to distribute methamphetamine, announced U.S. Attorney Andrew M. Luger. 

According to cour documents, from September 2021 through February 2022, Jerry Lee Milliken, 40, led a large-scale methamphetamine trafficking conspiracy that was based in Rochester, Minnesota and operated throughout southeastern Minnesota and elsewhere. Milliken organized the delivery of methamphetamine from a supplier in Kansas City, Missouri, to sub-distributors in the Rochester area. Milliken also collected and received drug proceeds and facilitated communications in support of the conspiracy. Between the fall of 2021 and the winter of 2022, law enforcement seized approximately 80 pounds of methamphetamine from the conspiracy during various enforcement operations.

Milliken pleaded guilty yesterday in U.S. District Court before Senior Judge Susan Richard Nelson to one count of conspiracy to distribute methamphetamine. He faces a mandatory minimum sentence of 10 years and up to life in prison. A sentencing hearing will be scheduled at a later time.

Aaron Raymond Dombovy, 30, one of Milliken’s coconspirators, pleaded guilty Wednesday, November 16, also to one count of conspiracy to distribute methamphetamine. He also faces a mandatory minimum sentence of 10 years and up to life in prison.

This case is the result of an investigation conducted by the Drug Enforcement Administration, the Rochester Police Department, the Minnesota Bureau of Criminal Apprehension, the Southeast Minnesota Violent Crimes Enforcement Team, and the Olmsted County Sheriff’s Office.

Assistant U.S. Attorney Allen A. Slaughter Jr. is prosecuting the case.

 

MINNEAPOLIS – A Blaine man has been arrested and charged in a federal criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents and a law enforcement affidavit, on August 10, 2022, at approximately 1:26 p.m., deputies with the Anoka County Sheriff’s Office responded to a residential burglary in Ham Lake. A video surveillance system at the residence showed a man, later identified as Carson Thomas McCoy, 21, pried open the front door of the residence and later sped away in a stolen black BMW sedan. Among the items stolen from the residence were a Springfield Armory .45 caliber handgun, two loaded ammunition magazines, and $1,500 in cash.

According to court documents and a law enforcement affidavit, less than 30 minutes later, the Anoka County Sheriff’s Office received reports of an incident involving shots fired around Lexington Avenue NE and 155th Avenue NE in Ham Lake. It was reported that a black BMW sedan nearly collided with three people riding motorcycles. Someone in the BMW then held a handgun out of the BMW's sunroof and fired several shots at the three people on the motorcycles. Shortly thereafter, law enforcement located the BMW and attempted to stop the vehicle, but it fled before eventually crashing into an Anoka County Sheriff’s Office patrol vehicle. The driver, McCoy, and a female passenger were taken into custody. Following a search of the BMW, law enforcement recovered the Springfield Armory handgun previously stolen from the residence, a Bersa .380 caliber handgun, narcotics, $851 in cash, and a false identification card.

According to court documents and a law enforcement affidavit, on July 19, 2022, McCoy used the false identification card at car dealership in Eden Prairie to arrange a test drive of the stolen black BMW sedan and then never returned the car.

McCoy is charged with one count of possession of a firearm as a felon. He appeared yesterday in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright and was ordered to remain in detention pending further proceedings.

This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Blaine Police Department, and the Anoka County Sheriff’s Office.

Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.

A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

 

MINNEAPOLIS – A Rochester man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, on May 25, 2022, Marcus Anthony Jackson, 49, was in possession of a Taurus G2C 9MM pistol. Officers with the Rochester Police Department executed a search warrant at Jackson’s residence in Rochester. At the beginning of the search, Jackson indicated there were no firearms present. However, as an officer began to search above the kitchen cabinets, Jackson informed the officer that he had a gun above the refrigerator. Because he has multiple prior felony convictions in Olmsted, Ramsey and Hennepin Counties, Jackson is prohibited under federal law from possessing firearms or ammunition at any time.

Jackson pleaded guilty yesterday in U.S. District Court before Senior Judge Joan N. Erickson to one count of felon in possession of a firearm. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rochester Police Department.

Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.