District of Minnesota

The Department of Justice announced today federal criminal charges against 47 defendants for their alleged roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.

“These indictments, alleging the largest pandemic relief fraud scheme charged to date, underscore the Department of Justice’s sustained commitment to combating pandemic fraud and holding accountable those who perpetrate it,” said Attorney General Merrick B. Garland. “In partnership with agencies across government, the Justice Department will continue to bring to justice those who have exploited the pandemic for personal gain and stolen from American taxpayers.”

“Today’s indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

“This was a brazen scheme of staggering proportions,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “These defendants exploited a program designed to provide nutritious food to needy children during the COVID-19 pandemic. Instead, they prioritized their own greed, stealing more than a quarter of a billion dollars in federal funds to purchase luxury cars, houses, jewelry, and coastal resort property abroad. I commend the work of the skilled investigators and prosecutors who unraveled the lies, deception, and mountains of false documentation to bring this complex case to light.”

The 47 defendants are charged across six separate indictments and three criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.

As outlined in the charging documents, the defendants devised and carried out a massive scheme to defraud the Federal Child Nutrition Program. The defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.

The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.

During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.

Aimee Bock was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. The indictments charge Bock with overseeing a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. Feeding Our Future went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021.

As part of the charged scheme, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by the defendants and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. The defendants created dozens of shell companies to enroll in the program as Federal Child Nutrition Program sites. The defendants also created shell companies to receive and launder the proceeds of their fraudulent scheme.

To carry out the scheme, the defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site. The defendants submitted false invoices purporting to document the purchase of food to be served to children at the sites. The defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. For example, one roster was created using names from a website called “www.listofrandomnames.com.” Because the program only reimbursed for meals served to children, other defendants used an Excel formula to insert a random age between seven and 17 into the age column of the rosters.

Despite knowing the claims were fraudulent, Feeding Our Future submitted the fraudulent claims to MDE and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to the individuals and entities involved in the scheme.

In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.

When MDE attempted to perform necessary oversight regarding the number of sites and amount of claims being submitted, Bock and Feeding Our Future gave false assurances that they were monitoring the sites under its sponsorship and that the sites were serving the meals as claimed. When MDE employees pressed Bock for clarification, Bock accused MDE of discrimination and unfairly scrutinizing Feeding Our Future’s sites. When MDE denied Feeding Our Future site applications, Bock and Feeding Our Future filed a lawsuit accusing MDE of denying the site applications due to discrimination in violation of the Minnesota Human Rights Act.

In total, Feeding Our Future opened more than 250 sites throughout the state of Minnesota and fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.

“Exploiting a government program intended to feed children at the time of a national crisis is the epitome of greed,” said Special Agent in Charge Justin Campbell of the IRS Criminal Investigation, Chicago Field Office. “As alleged, the defendants charged in this case chose to enrich themselves at the expense of children. Instead of feeding the future, they chose to steal from the future. IRS – Criminal Investigation is pleased to join our law enforcement partners to hold these defendants accountable.”

United States v. Aimee Marie Bock, et al., 22-CR-223 (NEB/TNL), charges 14 defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Safari Restaurant and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $32 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.

United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, federal programs bribery, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In April 2020, Empire Cuisine and Market LLC enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The owners of Empire Cuisine and Market LLC and their co-conspirators opened additional sites throughout the state of Minnesota, as well as dozens of shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $40 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, travel, real estate, and property in Kenya.

United States v. Qamar Ahmed Hassan, et al., 22-CR-224 (NEB/TNL), charges eight defendants with conspiracy, wire fraud, and money laundering for their roles the Federal Child Nutrition Program fraud scheme. In August 2020, S & S Catering Inc. enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owner of S & S Catering and other co-conspirators opened sites across the Twin Cities and claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $18 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles and real estate.

United States v. Haji Osman Salad, et al., 22-CR-226 (NEB/TNL), charges five defendants with wire fraud, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Haji’s Kitchen LLC and other co-conspirators enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. The co-conspirators opened sites across the state of Minnesota, as well as multiple shell companies. Over the course of the fraud scheme, the defendants claimed to have served millions of meals. Based on their fraudulent claims, the defendants received more than $25 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and travel.

United States v. Liban Yasin Alishire, et al., 22-CR-222 (NEB/TML), charges three defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs, federal programs bribery, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. The owner of Community Enhancement Services Inc. and other co-conspirators opened multiple sites and shell companies in the JigJiga Business Center in Minneapolis. Over the course of the fraud scheme, the defendants claimed to have served hundreds of thousands of meals. Based on their fraudulent claims, the defendants received more than $1.6 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and beach property in Kenya.

United States v. Sharmake Jama, et al., 22-CR-225 (NEB/TNL), charges six defendants with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering for their roles in the Federal Child Nutrition Program fraud scheme. In September 2020, Brava Restaurant & Café LLC, a site located in Rochester, Minnesota, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. The owners of Brava Restaurant & Café and other co-conspirators claimed to have served millions of meals from Brava Restaurant & Café and falsely claimed to have a contract with Rochester Public Schools. Based on their fraudulent claims, the defendants received approximately $4.3 million in Federal Child Nutrition Program funds, which they misappropriated for their own personal benefit, including expenditures such as vehicles, real estate, and property on the Mediterranean coast of Turkey.

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The following defendants are named in the United States v. Aimee Marie Bock, et al. indictment:

• Aimee Marie Bock, 41, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery. Bock was the founder and executive director of Feeding Our Future. Bock oversaw the $240 million fraud scheme carried out by sites under Feeding Our Future’s sponsorship.
• Abdikerm Abdelahi Eidleh, 39, of Burnsville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Eidleh was an employee of Feeding Our Future who solicited and received bribes and kickbacks from individuals and sites under the sponsorship of Feeding Our Future. Eidleh also created his own fraudulent sites.
• Salim Ahmed Said, 33, of Plymouth, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
• Abdulkadir Nur Salah, 36, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdulkadir Salah was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.
• Ahmed Sharif Omar-Hashim, 39, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Omar-Hashim created a company called Olive Management Inc., a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
• Abdi Nur Salah, 34, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdi Salah registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
• Abdihakim Ali Ahmed, 36, of Apple Valley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdihakim Ahmed created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
• Ahmed Mohamed Artan, 37, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, conspiracy to commit money laundering, and money laundering. Artan registered Stigma-Free International, a non-profit entity used to carry out the scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul.
• Abdikadir Ainanshe Mohamud, 30, of Fridley, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Mohamud ran the Stigma-Free Willmar site. This site claimed to have served approximately 1.6 million meals and received more than $4 million in fraudulent Federal Child Nutrition Program funds.
• Abdinasir Mahamed Abshir, 30, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Abdinasir Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
• Asad Mohamed Abshir, 32, of Mankato, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Asad Abshir ran the Stigma-Free Mankato site. This site claimed to have served more than 1.6 million meals and received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
• Hamdi Hussein Omar, 26, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Omar ran the Stigma-Free Waite Park site. This site claimed to have served more than 500,000 meals and received more than $1 million in fraudulent Federal Child Nutrition Program funds.
• Ahmed Abdullahi Ghedi, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Ghedi created ASA Limited LLC, a site that received approximately $5 million in fraudulent Federal Child Nutrition Program funds.
• Abdirahman Mohamud Ahmed, 54, of Columbus, Ohio, is charged with conspiracy to commit money laundering and money laundering. Abdirahman Ahmed was an owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds.

The following defendants are named in the United States v. Abdiaziz Shafii Farah, et al. indictment:

• Abdiaziz Shafii Farah, 33, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, money laundering, and false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
• Mohamed Jama Ismail, 49, of Savage, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
• Mahad Ibrahim, 46, of Lewis Center, Ohio, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Ibrahim was the president and owner of ThinkTechAct Foundation, a Minnesota non-profit organization that also operated under the name Mind Foundry Learning Foundation. ThinkTechAct and Mind Foundry created dozens of sites throughout Minnesota, including in Minneapolis, St. Paul, Bloomington, Burnsville, Faribault, Owatonna, Shakopee, Circle Pines, and Willmar. ThinkTechAct received more than $18 million in fraudulent Federal Child Nutrition Program funds.
• Abdimajid Mohamed Nur, 21, of Shakopee, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
• Said Shafii Farah, 40, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Said Farah, the brother of Abdiaziz Farah, was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
• Abdiwahab Maalim Aftin, 32, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Aftin was an owner of Bushra Wholesalers LLC, a shell company used to launder fraudulent Federal Child Nutrition Program funds.
• Mukhtar Mohamed Shariff, 31, of Bloomington, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, conspiracy to commit money laundering, and money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a shell company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
• Hayat Mohamed Nur, 25, of Eden Prairie, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.

The following defendants are named in the United States v. Qamar Ahmed Hassan, et al. indictment:

• Qamar Ahmed Hassan, 53, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit money laundering, and money laundering. Hassan was the owner and operator of S & S Catering Inc., a for-profit restaurant and catering business that participated in the scheme as a distribution site and as a vendor for other sites. S & S Catering received more than $18 million in fraudulent Federal Child Nutrition Program funds.
• Sahra Mohamed Nur, 61, of Saint Anthony, Minnesota, is charged with conspiracy to wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Nur ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
• Abdiwahab Ahmed Mohamud, 32, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Mohamud ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
• Filsan Mumin Hassan, 28, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Hassan ran a site called Youth Higher Educational Achievement that falsely claimed to serve up to 4,300 meals a day.
• Guhaad Hashi Said, 46, of Minneapolis, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Hashi ran a site under the name Advance Youth Athletic Development that falsely claimed to serve up to 5,000 meals a day.
• Abdullahe Nur Jesow, 62, of Columbia Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Jesow ran a site called Academy For Youth Excellence that used S & S Catering as a vendor.
• Abdul Abubakar Ali, 40, of St. Paul, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Abdul Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.
• Yusuf Bashir Ali, 40, of Vadnais Heights, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Yusuf Ali ran a site called Youth Inventors Lab that falsely claimed to have served a total of approximately 1.5 million meals in a seven-month period.

The following defendants are named in the United States v. Haji Osman Salad, et al. indictment:

• Haji Osman Salad, 32, of St. Anthony, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Salad was the principal of Haji’s Kitchen and received approximately $11.6 million in fraudulent Federal Child Nutrition Program funds.
• Fahad Nur, 38, of Minneapolis, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Nur was the principal of The Produce LLC, a vendor and purported food supplier who received more than $5 million in fraudulent Federal Child Nutrition Program funds.
• Anab Artan Awad, 52, of Plymouth, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Awad was the president of Multiple Community Services, MCA. Awad claimed more than $11 million in fraudulent Federal Child Nutrition Program funds.
• Sharmarke Issa, 40, of Edina, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Issa created a company called Minnesota’s Somali Community and was the manager of Wacan Restaurant LLC. Issa fraudulently caused MDE to pay out more than $7.4 million in Federal Child Nutrition Program funds.
• Farhiya Mohamud, 63, of Bloomington, Minnesota, is charged with conspiracy to commit money laundering, and money laundering. Mohamud was the principal and CEO of Dua Supplies and Distribution Inc., a shell company that laundered millions of dollars of fraudulently obtained Federal Child Nutrition Program funds.

The following defendants are named in the United States v. Liban Yasin Alishire, et al. indictment:

• Liban Yasin Alishire, 42, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit federal programs bribery, federal programs bribery, and money laundering. Alishire was the president and owner of Community Enhancement Services Inc., a company located in the JigJiga Business Center in Minneapolis. Community Enhancement Services was a cultural mall owned and operated by Alishire and co-defendant Khadar Jigre Adan. Community Enhancement Services received more than $1.6 million in fraudulent Federal Child Nutrition Program funds.
• Ahmed Yasin Ali, 57, of Brooklyn Park, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Ali created a second program site, run by Lake Street Kitchen, and located in the JigJiga Business Center in Minneapolis.
• Khadar Jigre Adan, 59, of Lakeville, Minnesota, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Adan was the CEO of Lake Street Kitchen, which was a program site located in the JigJiga Business Center in Minneapolis.

The following defendants are named in the United States v. Sharmake Jama, et al. indictment:

• Sharmake Jama, 34, of Rochester, Minnesota, is charged with wire fraud, federal programs bribery, conspiracy to commit money laundering, and money laundering. Sharmake Jama was a principal of Brava Restaurant and Café LLC. Brava Restaurant received approximately $4.3 million in fraudulent Federal Child Nutrition Program funds.
• Ayan Jama, 43, of Rochester, Minnesota, is charged with wire fraud, conspiracy to commit money laundering, and money laundering. Ayan Jama was a principal of Brava Restaurant and Café LLC. Ayan Jama also created shell companies to launder fraudulent proceeds.
• Asha Jama, 39, of Lakeville, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Asha Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
• Fartun Jama, 35, of Rosemount, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Fartun Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
• Mustafa Jama, 45, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Mustafa Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.
• Zamzam Jama, 48, of Rochester, Minnesota, is charged with conspiracy to commit money laundering and money laundering. Zamzam Jama worked for Brava Restaurant and created shell companies to launder fraudulent proceeds.

Criminal informations:

• Bekam Addissu Merdassa, 39, of Inver Grove Heights, Minnesota, is charged with one count of conspiracy to commit wire fraud.
• Hadith Yusuf Ahmed, 34, of Eden Prairie, Minnesota, is charged with one count of conspiracy to commit wire fraud.
• Hanna Marekegn, 40, of Edina, Minnesota, is charged with one count of conspiracy to commit wire fraud.

United States Attorney Andrew Luger thanked the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.

Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab for the District of Minnesota are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

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

MINNEAPOLIS – A federal grand jury returned an indictment against a Coon Rapids man for making interstate threats against a U.S. Senator, announced U.S. Attorney Andrew M. Luger.

According to court documents on June 11, 2022, Brendon Michael Daugherty, 35, left two voicemail messages on the field office telephone of a U.S. Senator located outside the state of Minnesota. Both messages contained threats of violence directed at the U.S. Senator. In his first message, Daugherty stated, “You and the Republican Party should be proud that you’re pushing me to become a domestic terrorist. Have a nice [expletive] day; can’t wait to kill ya.” In his second message, Daugherty stated, “I also just wanted to note, thank god the Republican Party is against gun control laws because it would keep guns out of the hands of a person that was disabled and volatile like I am, but you guys are totally against that. So I may actually get to carry out my nefarious goals.”

Field office staff retrieved and recorded the messages and reported them to U.S. Capitol Police. On September 2, 2022, special agents with the FBI spoke to Daugherty at his Coon Rapids residence. Daugherty told the agents he made the calls to the U.S. Senator because the U.S. Senator was “doing a bunch of stupid [expletive] with gun control,” and that he wants politicians to “feel a little bit pressured.”

Daugherty is charged with one count of threatening to murder a United States official and one count of interstate transmission of a threat. He made his initial appearance today in U.S. District Court before Magistrate Judge Tony N. Leung.

This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police.

Assistant U.S. Attorney Kimberly A. Svendsen 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.

ST. PAUL, Minn. – A St. Paul man was sentenced to 516 months in prison followed by a lifetime term of supervised release for victimizing more than 1,100 minor girls across the country and abroad in an extensive online sextortion scheme, announced United States Attorney Andrew M. Luger.

“For several years, Yue Vang victimized more than 1,000 young girls – in Minnesota and beyond – through a vicious sextortion scheme. Using popular social media apps to prey on his victims, Vang’s manipulation began with compliments and expressions of flattery, which quickly turned into threats and extortion,” said U.S. Attorney Andrew Luger. “Today’s 40-year prison sentence shows that the reprehensible crime of child sexual exploitation will not be tolerated.”

“There are few crimes as damaging and traumatic to a young person as sextortion. Vang is a predator who targeted innocent and impressionable young girls, exploiting their innocence for pictures and videos. He robbed them of their childhood and forever altered their lives and the lives of their families,” said Michael Paul, FBI Special Agent in Charge, Minneapolis Division. “This case demonstrates the extensive reach of social media and the irreparable trauma one predatory individual inflicted on over a thousand young girls. However, the ensuing investigation highlights the immense collaboration and dedication of law enforcement partners throughout the country who worked tirelessly to identify the victims and hold Vang accountable for his atrocious crimes.”

According to court documents, for at least five years, Yue Vang, 31, created and used multiple Internet applications and social media services, including Kik, Snapchat, and Skype, to communicate with hundreds of minor girls throughout the United States and elsewhere. Vang created fake female personae to prey on vulnerable minor girls he met online in order to entice and coerce them to create sexually explicit images and videos to send to him. Vang also threatened to disseminate sexually explicit images of the minor victims to their family members, friends, and classmates, unless they created and sent him additional images and videos of themselves nude or engaging in sexually explicit conduct. For example, in June 2016, Vang contacted a 15-year-old girl and threatened to distribute sexually explicit pictures of her to her classmates and parents to “ruin her life” unless she complied with Vang’s demands to send additional sexually explicit images and videos.

On June 2, 2022, Vang pleaded guilty to two counts of production of child pornography, one count of possession of child pornography, and one count of interstate communications with intent to extort. Vang was sentenced today in U.S. District Court before Judge Eric C. Tostrud.

To date, at least 750 minor females have been identified, although law enforcement is attempting to confirm the identity of many other victims. Anyone who believes they may have been a victim of Vang’s offenses or who has information about this matter is encouraged to visit www.fbi.gov/resources/victim-services/seeking-victim-information/seeking-victims-in-yue-vang-investigation or www.Justice.gov/usao-mn/child-sextortion-victim-information.

This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Click on the “resources” tab for information about Internet safety education.

This case was the result of an investigation conducted by the FBI Minneapolis Field Office and multiple FBI Field Offices, the St. Paul Police Department, the Minnesota ICAC Task Force, the Chandler (Arizona) Police Department, the Delhi Township (Ohio) Police Department, and the Iowa Department of Criminal Investigation.

Assistant U.S. Attorney Chelsea A. Walcker and former Assistant U.S. Attorney Miranda E. Dugi prosecuted the case.

ST. PAUL, Minn. – A California man has pleaded guilty to wire fraud after defrauding his former employer, a Minnesota-based retailer, of more than $400,000, announced U.S. Attorney Andrew M. Luger.

According to court documents, Michael John Gennarelli, 32, of Huntington Beach, California, was employed as a sales consultant and mobile supervisor for Company A, a retail store based in Minnesota. Gennarelli unlawfully accessed Company A’s computer network and obtained sales receipt information for high-dollar-value purchases that were not associated with a “My Rewards” account, Company A’s customer loyalty program. Gennarelli then created numerous fraudulent “My Rewards” accounts, applied the stolen sales receipts information, and claimed the associated “My Rewards” points for the value of such purchases. In total, Gennarelli issued himself approximately $467,307 in “My Rewards” certificates, $393,200 of which he redeemed for merchandise and gift cards in Company A stores and on Company A’s website.

Gennarelli pleaded guilty today before U.S. District Judge Katherine M. Menendez to one count of wire fraud. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the U.S. Secret Service and the Minnesota Bureau of Criminal Apprehension.

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

MINNEAPOLIS – Two men have been sentenced to prison for stealing more than $2 million from victims of business email compromise and romance fraud schemes, announced United States Attorney Andrew M. Luger.

According to court documents, beginning in 2016 through May 2021, Olumide Obidare, 29, and Stephen Oseghale, 29, conspired with each other to use fictitious and stolen identities to engage in business email compromise (BEC) fraud schemes and pursue fraudulent romantic relationships online. As part of the scheme, the defendants obtained false identification documents, including passports and driver’s licenses, and used them to open bank accounts at various banks throughout the United States. The defendants transferred the proceeds of their online romance fraud scams and BEC schemes to bank accounts under their control. In total, the defendants defrauded victims of approximately $2,114,893.91.

On March 14, 2022, Obidare pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Earlier today, U.S. District Court by Judge Nancy E. Brasel sentenced Obidare to 132 months in prison followed by three years of supervised release and ordered him to pay $1,955,507.53 in restitution. Oseghale, who pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft, was sentenced on August 16, 2022, to 80 months in prison followed by three years on supervised release and ordered to pay $453,889.27 in restitution.

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

This case was prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen and former Assistant U.S. Attorney Miranda E. Dugi.

ST. PAUL, Minn. – A Hopkins man has been sentenced to life in prison for distributing controlled substances, including fentanyl, which resulted in the deaths of eleven people and caused serious bodily injury to four people, announced U.S. Attorney Andrew M. Luger.

“Eleven lives lost. Families, friends, and communities forever changed by the devastation brought on by Aaron Broussard’s deadly fentanyl. Although the trauma felt by the victims can never be undone and the true cost can never be calculated, Mr. Broussard will now spend the remainder of his life behind bars,” said U.S. Attorney Andrew M. Luger.  

“Let today’s sentencing serve as a wakeup call to the drug traffickers pushing fentanyl in and around our communities,” Drug Enforcement Administration (DEA) Omaha Division Special Agent in Charge Justin C. King said. “A mere two milligrams of fentanyl, equivalent in size to a few grains of salt, is enough to potentially kill a person. The threat of fentanyl is real, and the traffickers pushing this deadly substance will be held accountable for the lives they’ve taken, the families they’ve hurt and the communities they’ve devastated.”

“Today’s sentencing of Aaron Broussard sends a clear message in how critical a role the U.S. Postal Inspection Service and its law enforcement partners play in protecting American consumers from illegal narcotics being shipped via the U.S. Mail. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives,” stated Inspector in Charge Ruth M. Mendonça of the U.S. Postal Inspection Service, Denver Division.”

According to the evidence presented at trial, from 2014 through December 6, 2016, Aaron Rhy Broussard, 31, obtained controlled substances, including fentanyl, from China-based drug suppliers. Broussard conspired with his China-based suppliers to smuggle what would prove to be deadly drugs into the country. Broussard marketed these drugs for sale on his website, PlantFoodUSA.net, under the guise of selling plant food. He then used the United States mail and a United States Postal Service “Click-N-Ship” account to send out packages of deadly drugs around the country.

On March 12, 2016, Broussard placed a drug order for 100 grams of 4-FA, a controlled substance analogue, which was shipped from China. The package actually contained 100 grams of 99% pure fentanyl. Although Broussard had experienced a similar mix-up in August 2015 and was repeatedly told to test his drugs, he did not do so. Between March 31 and April 27, 2016, Broussard sent his branded packages containing fentanyl to more than a dozen customers throughout the United States. The customers had ordered and were expecting to receive an amphetamine analogue, similar to Adderall. They were not opiate users and had no tolerance for the deadly fentanyl Broussard sent them. After ingesting the fentanyl, believing it was Adderall, eleven of the customers died from a fentanyl overdose, and at least four customers suffered serious bodily injury.

Broussard continued distributing his deadly packages despite hearing about adverse reactions. Even after he learned that several customers had been hospitalized and nearly died, Broussard never warned his customers not to take the deadly drugs. Broussard did reach out to his suppliers in China to request a discount on his next drug delivery.

On March 31, 2022, following a 10-day jury trial before Senior U.S. District Judge Susan Richard Nelson, Broussard was convicted on 17 counts, including conspiracy, importation of fentanyl, possession with intent to distribute fentanyl, distribution of fentanyl resulting in death, distribution of fentanyl resulting in serious bodily injury, and possession with intent to distribute controlled substance analogues.

During the sentencing hearing, Senior U.S. District Judge Susan Richard Nelson lauded the bravery shown by victims and their families in providing their victim impact statements to the Court. In imposing the life sentence, Judge Nelson told Broussard, “Your disregard for human life is terrifying.” 

This case is the result of an investigation conducted by the U.S. Drug Enforcement Administration and the U.S. Postal Inspection Service, in partnership with Homeland Security Investigations, Customs and Border Protection, the University of Minnesota Police Department, the Peoria Heights (Illinois) Police Department, the Dallas (Texas) Police Department, the Broome County (New York) Sheriff’s Office, the Volusia County (Florida) Sheriff’s Office, the Orange County (California) Sheriff’s Office, Garrard County (Kentucky) Sheriff’s Office, Hazel Green (Wisconsin) Police Department, and the Atlanta (Georgia) Police Department.

Assistant U.S. Attorneys Thomas M. Hollenhorst and Melinda A. Williams prosecuted the case.

MINNEAPOLIS – A Minneapolis man has been charged in a federal criminal complaint for possessing auto sears and using 3D printers to manufacture auto sears out of his Minneapolis residence, announced U.S. Attorney Andrew M. Luger.

According to court documents, on August 31, 2022, law enforcement conducted a controlled delivery of a package containing 30 firearm parts to Aaron Malik Cato, 25, at his Minneapolis residence. The package, which had been shipped from Taiwan and intercepted by Customs and Border Protection (CBP) agents, contained enough parts to create 10 auto sears, a device that turns a semi-automatic firearm into a fully automatic firearm and is considered a machinegun under federal law. Upon searching Cato’s home, pursuant to a warrant, law enforcement recovered seven firearms, including five handguns and two AR platform firearms. Three of the handguns were equipped with auto sears and appeared to be Privately Made Firearms (PMF’s), or ghost guns. Law enforcement also found inside Cato’s residence four 3D printers and multiple 3D printed auto sears.

Cato is charged in a criminal complaint with possession of machineguns. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Tony N. Leung and was ordered to remain in detention pending further proceedings.

This case is the result of an investigation conducted by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, and the Minneapolis Police Department.

Assistant U.S. Attorney Allison K. Ethen 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 former corrections officer has pleaded guilty to her role in a methamphetamine distribution organization within the Minnesota Correctional Facility (MCF)-Stillwater, announced U.S. Attorney Andrew M. Luger.

According to court documents, Faith Rose Gratz, 24, a former MCF – Stillwater corrections officer, and co-defendant Axel Rene Kramer, 34, an inmate who is currently serving a 288-month sentence for second degree murder, conspired with each other to distribute methamphetamine within MCF – Stillwater, Minnesota’s largest high security prison facility. As part of the conspiracy, Kramer obtained wholesale quantities of prepackaged methamphetamine from sources of supply outside the prison. After Kramer and another co-conspirator inmate worked with the drug suppliers to arrange meet up times and locations, Gratz would pick up the drug packages. Gratz used her position as a prison guard to smuggle the drugs into the secure facility and then provide the drugs to Kramer while she was on duty guarding him. Gratz did this on approximately six different occasions. Gratz also smuggled into the prison multiple cell phones that she provided to Kramer. Kramer used the cell phones to communicate with people inside and outside the prison and to facilitate his drug distribution network from within the prison.

According to court documents, Gratz and Kramer exchanged hundreds of text messages with each other. The messages included communications about the drug distribution conspiracy as well as discussions about their romantic relationship. Gratz also warned Kramer about upcoming searches of inmates’ cells.

On April 8, 2022, after recovering Kramer’s cell phone, law enforcement officers confronted Gratz about the drug distribution operation. Officers searched Gratz’s car and recovered a half pound of methamphetamine.

Gratz pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of conspiracy to distribute methamphetamine. A sentencing hearing will be scheduled at a later time.

This case is the result of an investigation conducted by the FBI, the Bayport Police Department, and the Minnesota Department of Corrections.

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

ST. PAUL, Minn. – A Minneapolis man has pleaded guilty to sex trafficking of a minor, announced U.S. Attorney Andrew M. Luger.

According to court documents, in August 2020, Charles William Dexter III, 41, 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.

Dexter pleaded guilty today before Senior U.S. District Judge Susan Richard Nelson to one count of sex trafficking of a minor. He faces a mandatory minimum sentence of 10 years imprisonment. A sentencing hearing will be scheduled at a later time.  

This case is 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 are prosecuting the case.

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MINNEAPOLIS – A Lino Lakes man has pleaded guilty to 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 and officers located in the spare tire compartment a Gucci handbag containing a loaded 9 mm semi-automatic pistol and more than two pounds of methamphetamine sealed inside four zip-lock bags. 

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. During the torture, Chapa-Aguilera demanded money from the victim and told the victim that he would have to distribute drugs to work off a perceived debt. 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 pleaded guilty today before Senior U.S. District Judge Joan N. Ericksen to one count of possession of a firearm in furtherance of a drug trafficking crime on April 11, 2021, and one count of possession with the intent to distribute methamphetamine on December 20, 2021. A sentencing date has not been set.

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 is prosecuting the case.

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DULUTH, Minn. - A Red Lake man was found guilty by a federal jury of aggravated sexual abuse and sexual abuse occurring on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.

Following a five-day trial before U.S. District Judge Nancy E. Brasel, Descart Austin Begay, Jr., 38, was convicted late Friday on two counts of aggravated sexual abuse and two counts of sexual abuse.

As proven at trial, on July 3, 2020, Begay knowingly raped and sexually assaulted Victim A in her home, until she was finally able to break free and escape. A sentencing hearing will be scheduled at a later time.

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

Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.

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

According to court documents, on June 23, 2021, William Kenneth Saarela Sr., 42, stole a Canik 9mm pistol. On September 2, 2021, during a domestic dispute with two other individuals, Saarela directed his minor son to bring him the pistol. Saarela fired six shots. No one was injured. On September 21, 2021, law enforcement executed a search warrant at Saarela’s Minneapolis residence and recovered the pistol, which was loaded with 18 rounds. Because Saarela has multiple prior felony convictions he is prohibited under federal law from possessing firearms or ammunition at any time.

Saarela pleaded guilty yesterday before U.S. District Judge John R. Tunheim to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.

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

Assistant U.S. Attorney Melinda A. Williams is prosecuting the case.

MINNEAPOLIS – Bayer Corporation, an Indiana corporation and manufacturer of pharmaceutical products, and its related entities, Bayer HealthCare Pharmaceuticals Inc., Bayer HealthCare LLC and Bayer AG (collectively “Bayer”), have agreed to pay $40 million to resolve alleged violations of the False Claims Act in connection with the drugs Trasylol, Avelox and Baycol.

The settlement announced today arose from two “whistleblower” lawsuits filed and pursued by Laurie Simpson, a former employee of Bayer who worked in its marketing department.

In a lawsuit filed in the District of New Jersey, Simpson alleged that Bayer paid kickbacks to hospitals and physicians to induce them to utilize the drugs Trasylol and Avelox, and also marketed these drugs for off-label uses that were not reasonable and necessary. Simpson further alleged that Bayer downplayed the safety risks of Trasylol. The lawsuit alleged that as a result of this conduct Bayer caused the submission of false claims to the Medicare and Medicaid Programs and violated the laws of 20 states and the District of Columbia. Trasylol is a drug used to control bleeding in certain heart surgeries Avelox is an antibiotic approved to treat certain strains of bacteria Simpson filed a second lawsuit relating to Bayer’s statin drug, Baycol, which was later transferred to the District of Minnesota. That lawsuit alleged that Bayer knew about, but downplayed, Baycol’s risks of causing rhabdomyolysis. The lawsuit further alleged that Bayer misrepresented the efficacy of Baycol when compared to other statins and fraudulently induced the Defense Logistics Agency to renew certain contracts relating to Baycol. Subsequently, Trasylol and Baycol were withdrawn from the market for safety reasons.

“Simpson diligently pursued this matter for almost two decades,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Today’s recovery highlights the critical role that whistleblowers play in the effective use of the False Claims Act to combat fraud in federal healthcare programs.”

“We recognize Simpson for her perseverance with this matter,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “We are pleased we were able to work with the parties to facilitate this resolution and help bring this longstanding matter to a close.”

“As alleged in the complaints, Bayer – one of the largest pharmaceutical companies in the world – engaged in a series of unlawful acts, including paying kickbacks to doctors and hospitals, marketing them off-label, and downplaying their safety risks,” said U.S. Attorney Philip R. Sellinger, District of New Jersey. “This resolution should send a message to the pharmaceutical industry that such conduct undermines the integrity of federal health care programs and jeopardizes patient safety. This settlement reflects the importance of the whistleblower’s role in litigating False Claims Act actions on behalf of the United States, and we thank Ms. Simpson and her counsel for stepping forward and pursuing this case to conclusion.”

Under the terms of the settlement, Bayer will pay $38,860,555 to the United States and $1,139,445 to the 20 states and the District of Columbia.

The two actions resolved by the settlement were brought under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the government for false claims and share in any recovery. The United States may intervene in the action or, as in this case, the whistleblower may proceed with the matter. Simpson will receive approximately $11 million from the proceeds of the settlement.

The cases are captioned United States ex rel. Simpson v. Bayer Corp. Civ. No. 05-cv-3895 (D.N.J.), and United States ex rel. Simpson v. Bayer Corp., Civ. No. 08-5758 (D.Minn), and were monitored by the Civil Division’s Commercial Litigation Branch, and the U.S. Attorneys’ Offices for the District of New Jersey and the District of Minnesota.

The claims settled by this agreement are allegations only, and there has been no admission of liability.

MINNEAPOLIS – A federal grand jury returned an indictment against a Rochester man for possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents on May 25, 2022, Marcus Anthony Jackson, also known as Homicide, 49, was found in possession of a Taurus G2C 9MM pistol. Because Jackson has multiple prior felony convictions in Olmsted, Hennepin, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

Jackson is charged with one count of possessing a firearm as a felon. He made his initial appearance in U.S. District Court today, before Magistrate Judge Tony N. Leung.

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.

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

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ST. PAUL, Minn. – A Red Lake man was sentenced to 239 months in prison followed by 10 years of supervised release for aggravated sexual assault, announced United States Attorney Andrew M. Luger. 

According to court documents, on November 7, 2020, Paul John Sayers, 30, stopped his truck beside Victim A who was walking on the road. Sayers offered Victim A a ride but instead of taking Victim A to her destination, Sayers drove her to a camper located on a property near a Hemp shop where Sayers worked. When Victim A resisted Sayers’s sexual advances, he hit and strangled Victim A until she passed out. Sayers then raped Victim A.  Victim A left the camper after the rape and began walking 20 miles back into town. As part of his guilty plea, Sayers also admitted to unlawful sexual contact with another person.

Sayers pleaded guilty on April 20, 2022, to one count of aggravated sexual assault. He was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud.

This case was the result of an investigation conducted by the FBI, the Red Lake Tribal Police Department, and the Bureau of Criminal Apprehension.

Assistant U.S. Attorney Emily Polachek prosecuted the case.

 

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MINNEAPOLIS – Vision Quest Industries, Incorporated (“VQ”) has agreed to pay the United States $2,250,000 to resolve False Claims Act allegations that VQ caused Osteo Relief Institutes (“ORIs”) to bill Medicare for knee braces that were tainted by illegal kickbacks, the Department of Justice announced today. VQ also entered into a five-year Corporate Integrity Agreement.

VQ is a manufacturer of durable medical equipment, including knee braces and other products intended to treat conditions such as osteoarthritis. VQ utilizes independent sales representatives to sell these products, which are routinely billed to Medicare.

The settlement resolves allegations that between 2011 and 2018, VQ paid Mathias Berry, an independent sales representative of VQ, and Berry’s company, Results Laboratories, LLC, kickbacks in the form of commission payments that ranged from 20–35 percent of VQ’s net revenue on each knee brace ordered by the ORI Clinics. Operating under the direction of Berry and his companies, the ORI Clinics submitted claims for millions of dollars in Medicare reimbursements. VQ profited substantially from the arrangement. By paying Berry and his company kickbacks in the form of sales commissions, VQ was able to establish itself as the exclusive brace supplier for 10-12 ORIs annually between 2011 and 2018. VQ understood that Berry was in a position to tell the ORIs which braces to order. This arrangement locked in millions of dollars in annual brace sales for VQ.

“Anyone working with Medicare must understand that the payment of kickbacks is strictly forbidden,” said U.S. Attorney Andrew M. Luger. “We will remain vigilant in addressing payment arrangements that undermine the core principles of Medicare and other government programs.”

“The payment of kickbacks to induce referrals for medical equipment can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure the appropriate use of taxpayer dollars. The OIG’s five-year compliance agreement is designed to ensure the alleged behavior will not be repeated.”

The allegations resolved by today’s settlement stem from a proactive government investigation based on a critical analysis of Medicare claims data. This effort also led to other previously announced settlements with Berry, Results, several former Osteo Relief Institutes and others for their alleged roles in this scheme.

The government’s settlement in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The matter was investigated by the U.S. Attorney’s Office for the District of Minnesota, the Civil Division’s Commercial Litigation Branch, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against defendants are allegations only, and there has been no determination of liability.

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MINNEAPOLIS – Five men have been sentenced to prison for a string of armed carjackings and various firearms violations, announced United States Attorney Andrew M. Luger.

Isaiah Stacy Alstad, 23, pleaded guilty to two counts of aiding and abetting carjacking and was sentenced yesterday before Judge John R. Tunheim to 110 months in prison. James Brock Williams, Jr., 21, and Clifton Germaine Walker, Jr., 25, were previously sentenced to 56 months and 110 months, respectively, for conspiring to use, carry, and brandish firearms during and in relation to armed carjackings.  Jordan Sydney Shamah Rhodes, 23, was previously sentenced to 72 months for being a controlled substance user in possession of a firearm.  And Joshoamei Deangelo Richardson, 21, was previously sentenced to 84 months in prison for aiding and abetting using, carrying, and brandishing a firearm during and in relation to an armed carjacking. A sixth codefendant, Eric Troy Ballard, Jr., 20, remains in custody pending further proceedings.

According to court documents, between May 2020 and January 2021, the defendants maintained active membership in the street gang known as the “Top 5.” The purpose of the gang was to make money for its members through criminal acts, including thefts, robberies, and distribution and sale of controlled substances. Proceeds of the money obtained through the commission of criminal acts were distributed among the Top 5 members. Top 5 members would use, carry, and possess firearms to commit these criminal acts as well as carry out acts of violence against others, including shootings and assaults. Top 5 members used social media to discuss criminal activity, recruit new members, and display cash, firearms, and controlled substances.

According to court documents, on August 25, 2020, at approximately 2:30 a.m., a victim was carjacked at gunpoint and pistol-whipped near the 1200 block of Jackson Street, in St. Paul. That same day, at approximately 6:50 a.m., a second victim was carjacked at gunpoint in the parking lot of a restaurant near White Bear Avenue in St. Paul. At approximately 9:00 a.m. that same day, a third victim was carjacked at gunpoint on Maria Avenue near Metropolitan State University in St. Paul. All six defendants were charged for their roles in these carjackings and related illegal possession and use of firearms during some of these crimes.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Saint Paul Police Department, the Minneapolis Police Department, the Columbia Heights Police Department, and the South Saint Paul Police Department.

This case is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.

MINNEAPOLIS – A Minneapolis man was sentenced to 180 months in prison followed by five years of supervised release for possessing a firearm as an Armed Career Criminal, announced United States Attorney Andrew M. Luger. 

According to court documents, on July 20, 2020, Minneapolis Police officers pulled over a GMC Envoy with Romelle Darryl Smith, 33, riding in it. Believing Smith was a suspect in a shooting investigation, officers ordered him out of the car. Smith told the officers he was carrying a Ruger LCP handgun with a Viridan laser attached. Police determined Smith’s identity and learned that he had an outstanding felony warrant with the Minnesota Department of Corrections. Smith was taken into custody. Prior to the July 20, 2020, arrest Smith had been convicted of four adult felonies as well as a domestic assault misdemeanor conviction, subjecting him to enhanced sentencing under the Armed Career Criminal Act.

Smith was sentenced yesterday in U.S. District Court by Judge John R. Tunheim. On August 24, 2022, he pleaded guilty to one count of felon in possession of a firearm as an Armed Career Criminal.

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

Assistant U.S. Attorney Sarah E. Hudleston prosecuted the case.

MINNEAPOLIS – As part of the federal strategy to reduce violent crime, U.S. Attorney Andrew Luger released two public service announcements (PSA) to further the violent crime deterrence message.

Violent Crime PSA: https://youtu.be/VFeHe0Yn1D4

Auto Sear PSA: https://youtu.be/7IOM4JdOIRA 

The Violent Crime PSA and the Auto Sear PSA are publicly available on YouTube, on the U.S. Attorney’s Office social media platforms, including Facebook and Twitter, and have been submitted to local media outlets. For further information, please contact the U.S. Attorney’s Public Affairs Office (612) 664-5600.

MINNEAPOLIS – U.S. Attorney Andrew Luger, along with federal, state, and local law enforcement partners, today announced recent enforcement actions in the Twin Cities and in Rochester resulting in the arrest of multiple violent offenders as part of the federal violent crime strategy launched earlier this year.

On May 3, 2022, U.S. Attorney Luger announced a new federal violent crime strategy that expanded capacity within the U.S. Attorney’s Office to prosecute violent crime cases. Every criminal prosecutor in the office has assisted in the effort by taking on violent crime cases, including carjackings, illegal possession of firearms and/or ammunition, drug trafficking, straw purchasing, armed Hobbs Act robberies, well as cases involving the illegal possession of machineguns and ghost guns.

“Violent crime is at an all-time high and the statistics are alarming, but that is only part of the story. The nature of the violence has changed. By their actions, their weapons and their words, violent offenders are displaying an absolute disdain for the law, and a disregard for human life,” said U.S. Attorney Luger. “Criminals are engaging in an appalling level of violence, using militaristic weapons and accessories that not only change the nature of the violence, but also the resulting harm. Several recent cases and the enforcement operations we’re announcing today illustrate our violent crime strategy in action. We are making progress in our efforts to break this violent crime trend, but there is still more work to be done. We will not let up; we owe it to our communities.”

Throughout the summer, law enforcement has been working in tandem with the U.S. Attorney’s Office to identify, investigate, and bring charges against the most violent offenders. Just yesterday, a joint law enforcement operation culminated in the arrest of 15 violent offenders and the seizure of 32 illegal firearms and machineguns. All 15 defendants have been charged in federal court. This operation was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the FBI, Drug Enforcement Administration, Homeland Security Investigations, the United States Marshals Service, the Minnesota Bureau of Criminal Apprehension, the Hennepin County Sheriff’s Violent Offender Task Force, the Minneapolis Police Department, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. This operation involved more than 100 federal, state, and local law enforcement officers, including out-of-state special response teams.

In addition, yesterday morning, the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, and the Southeast Minnesota Violent Crime Enforcement Team led a separate coordinated enforcement action involving more than 60 federal, state, and local law enforcement officers to dismantle a large-scale methamphetamine trafficking conspiracy based in Rochester. The operation resulted in the arrest of 10 drug traffickers and the seizure of drugs and firearms. All 10 defendants have been charged in federal court with conspiracy to distribute methamphetamine.

These cases are the result of joint investigations conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, Homeland Security Investigations, the United States Marshals Service, the Minnesota Bureau of Criminal Apprehension, the Hennepin County Sheriff’s Office, the Ramsey County Sheriff’s Office, the Minneapolis Police Department, the St. Paul Police Department, the Olmsted County Sheriff’s Office, the Rochester Police Department, and other law enforcement partners.

As part of the strategy to reduce violent crime, the United States Attorney’s Office for the District of Minnesota produced and released two public service announcements (PSA) to further the violent crime deterrence message.

Auto-Sear PSA: https://youtu.be/7IOM4JdOIRA
Violent Crime PSA: https://youtu.be/VFeHe0Yn1D4

The charges outlined are merely allegations and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ST. PAUL, Minn. – A federal jury convicted a Mexican national for illegal possession of 11 firearms, announced U.S. Attorney Andrew M. Luger.

Following a two-day trial before U.S. District Court Judge Eric C. Tostrud, Santos Gomez Perez, 65, was convicted of possession of firearms by an illegal alien.

As proven at trial, on March 14, 2019, during a search of an auto body shop, officers with the Minneapolis Police Department discovered a supply of firearms, ammunition, and firearm accessories inside a large metal cabinet. Law enforcement seized a total of 11 firearms. Perez, an employee at the shop, was identified as a suspect in a drug investigation and taken into custody. Perez admitted that he had been “taking care of the guns.” Because Perez is in the United States illegally, he is prohibited from possessing a firearm at any time.

This case was the result of an investigation conducted by Homeland Security Investigations, the Drug Enforcement Administration, the Minneapolis Police Department, and the St. Paul Police Department.

This case was tried by Assistant U.S. Attorney Thomas M. Hollenhorst.

ST. PAUL, Minn. – A Fridley man was sentenced to 216 months in prison followed by five years of supervised release for methamphetamine distribution and firearms violations, announced United States Attorney Andrew M. Luger. 

According to court documents, on February 1, 2019, law enforcement executed a search warrant at a residence in Columbia Heights. Officers encountered John Edward Juneau, 48, and two other people inside a detached garage. As a result of the search, officers found three plastic baggies containing more than 23 grams of 99% pure methamphetamine. Subsequent testing determined that Juneau’s DNA was present on the baggies.

According to court documents, on July 9, 2019, police executed a search warrant at a Coon Rapids residence. Officers saw Juneau trying to exit the residence through a basement bedroom window of the residence. Juneau dropped a bag outside the window that contained, among other things, a safe containing $6,000 in cash and numerous empty plastic baggies. Inside the residence, officers found quantities of 99% pure methamphetamine. The police also searched the garage located on the property and found a Ruger, .380 caliber pistol, a Ruger, .22 caliber pistol, two scales, several empty plastic baggies, and more than 40 grams of high purity methamphetamine.

Because Juneau has multiple prior felony convictions in Anoka, Sherburne, Hennepin, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

On April 12, 2022, Juneau was convicted by a federal jury of one count of possession with intent to distribute methamphetamine, one count of possession of methamphetamine, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegally possessing firearms as a felon. Juneau was sentenced earlier today in U.S. District Court before Judge Wilhelmina M. Wright.

This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Anoka-Hennepin Narcotics and Violent Crimes Task Force.

Assistant U.S. Attorneys Andrew Dunne and Harry Jacobs prosecuted the case.

MINNEAPOLIS – A Rochester man has pleaded guilty to attempting to provide material support to a designated foreign terrorist organization., announced U.S. Attorney Andrew M. Luger.

According to court documents, Muhammad Masood, 30, a licensed medical doctor in Pakistan, was formerly employed as a Research Coordinator at a medical clinic in Rochester, Minnesota, under an H-1B Visa. Between January 2020 and March 2020, Masood made several statements to others, including pledging his allegiance to the Islamic State of Iraq and Al-Sham (“ISIS”) and its leader, and expressing his desire to travel to Syria to fight for ISIS. Masood also expressed his desire to conduct “lone wolf” terrorist attacks in the United States. On Feb. 21, 2020, Masood purchased a plane ticket from Chicago, Illinois to Amman, Jordan, and from there planned to travel to Syria. On March 16, 2020, Masood’s travel plans changed because Jordan closed its borders to incoming travel due to the Coronavirus pandemic. Masood then planned to fly from Minneapolis to Los Angeles to meet up with an individual who he believed would assist him with travel via cargo ship to deliver him to ISIS territory.

On March 19, 2020, Masood traveled from Rochester to Minneapolis-St. Paul International Airport (MSP) to board a flight bound for Los Angeles, California. Upon arrival at MSP, Masood checked in for his flight and was subsequently arrested by the FBI’s Joint Terrorism Task Force.

This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force.

This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Dmitriy Slavin and Stephanie Sweeten of the National Security Division.

MINNEAPOLIS – A St. Paul man has been indicted for three armed robberies of grocery stores located in St. Paul along University Avenue, announced U.S. Attorney Andrew M. Luger.

According to court documents, on three separate occasions between May 27 and June 5, 2022, Nicholas Antwain Dancy, 38, robbed three grocery stores located on University Avenue in St. Paul, Towfiq Grocery, Midway Grocery and Deli, and Global Food and Mid Market. During the robberies, Dancy used a firearm to threaten the employees and demand cash. Dancy is also a convicted felon and is prohibited under federal law from possessing firearms or ammunition at any time.

Dancy is charged with three counts of Hobbs Act robbery, one count of brandishing a firearm during and in relation to a crime of violence, and one count of possessing a firearm as a felon. He is scheduled to make an initial appearance in U.S. District Court on August 15, 2022, before Magistrate Judge Becky R. Thorson.

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

Assistant U.S. Attorney Ruth S. Shnider 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.

ST. PAUL, Minn.– A Willmar attorney has pleaded guilty to 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 licensed 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.

According to court documents, prior to the filing of the petition, Anderson created fake liabilities to create the appearance that Rothers was insolvent when, in fact, Rothers could easily have paid all of 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 an obligation to repay this loan. The loan was entirely bogus and created to bolster the appearance of Rothers’ insolvency.     

As Rothers’ bankruptcy attorney, Anderson had to certify that the petition filed with the bankruptcy court was true and accurate.  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 and 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 pleaded guilty on August 8, 2022, to one count of fraudulent concealment of bankruptcy assets in U.S. District Court before Judge Eric C. Tostrud. Anderson’s plea agreement includes a requirement that he be voluntarily disbarred. A sentencing hearing has not yet been scheduled.

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. A sentencing hearing has not yet been scheduled.

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

Assistant U.S. Attorneys David J. MacLaughlin and Jordan L. Sing are prosecuting the case.

ST. PAUL, Minn. – A Minneapolis man was sentenced to 84 months in prison followed by two years of supervised release for possessing a stolen firearm, announced United States Attorney Andrew M. Luger. 

According to court documents, on June 23, 2021, Minneapolis Police officers responded to a shots fired call. Upon arrival, officers witnessed a man, Brandon Xavier Coyour, 31, fleeing the scene. As he fled, Coyour pulled a gun from his waistband and hid it in the wheel well of a parked car. Officers saw Coyour stash the gun and recovered it from the wheel well. Officers apprehended Coyour a couple blocks away from the scene. The gun, a Springfield XD-9 9mm semiautomatic handgun, had been reported stolen one month prior by its owner in Menominee, Wisconsin. Coyour is also a convicted felon and is prohibited under federal law from possessing firearms or ammunition at any time.

On April 12, 2022, Coyour pleaded guilty to one count of possession of a stolen firearm. Coyour was sentenced today in U.S. District Court before Senior Judge Paul A. Magnuson. In handing down the sentence, Judge Magnuson emphasized that convicted felons “will pay a very steep penalty” for possessing firearms.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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

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

ST. PAUL, Minn. – A Los Angeles man has pleaded guilty to his role in an insider trading conspiracy involving a medical device company’s nonpublic business acquisition deal.

According to court documents, Afshin “Alex” Farahan, 55, of Los Angeles, admitted that beginning in January 2018 through at least August 2020, he and co-defendants Doron “Ron” Tavlin, 66, of Minneapolis, and David Gantman, 56, of Mendota Heights, willfully engaged in an insider trading conspiracy. The conspiracy involved nonpublic information about the acquisition of Company B, an Israeli-based company that specialized in robotics for spinal procedures, by Company A, an Ireland-based medical device company that primarily operated from its executive headquarters in Minneapolis. Tavlin, a former vice president of Company B, learned material, nonpublic information about Company A’s potential acquisition of Company B. In violation of his duty to the company, Tavlin tipped this information about the acquisition to his friend, Farahan, who then tipped the information to Gantman and instructed him to keep the information secret. Farahan knew that Company A’s imminent acquisition of Company B would likely result in an increase in Company B’s stock price. Farahan and Gantman used the nonpublic information to quickly purchase substantial amounts of Company B securities throughout August and September 2018.  Specifically, between August 13, 2018, and September 17, 2018, Farahan purchased approximately $1,031,359 in Company B securities.  On September 21, 2018, the day after Company B publicly announced its acquisition by Company A, Farahan and Gantman each sold all of their Company B securities for a combined profit of more than $500,000. Farahan’s total share of the profit was approximately $247,500.

According to court documents, Farahan further admitted that, after the acquisition occurred, Tavlin learned that the Financial Industry Regulatory Authority (FINRA) was investigating certain trades of Company B securities that occurred prior to the publicly announced acquisition. As part of its inquiry, FINRA asked insiders who knew about the secret acquisition negotiations, which included Tavlin, whether they knew any of the parties who traded in Company B securities leading up to the public announcement. In January 2019, Tavlin responded to FINRA’s inquiry by falsely denying that he recognized any names on a list of persons and entities that purchased Company B securities, which included Farahan and Gantman’s names.

According to court documents, Farahan also admitted that it was part of the insider trading conspiracy that Tavlin and Farahan agreed that Farahan would pay money to Tavlin in exchange for the material, nonpublic information that Tavlin provided to him. For example, in October 2019, Farahan gave Tavlin a $25,000 check in exchange for the information that Tavlin had provided about Company B leading up to the acquisition.

Farahan pleaded guilty yesterday before Senior U.S. District Judge Donovan W. Frank to one count of conspiracy to engage in insider trading. A sentencing hearing will be scheduled at a later time.

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

Assistant U.S. Attorneys Matthew S. Ebert and Kimberly A. Svendsen are prosecuting the case.

MINNEAPOLIS – A Minneapolis man was sentenced to 255 months in prison, 20 years of supervised release, and $36,000 in restitution for using social media to produce and attempt to produce sexually explicit images and videos of children, announced United States Attorney Andrew M. Luger. 

According to court documents, between August 2018 and March 2021, Nathan Miller Dobbelmann, 40, used social media apps to contact and solicit sexually explicit images and videos from children. Dobbelmann also sent minors sexually explicit videos of himself as well as sexually graphic text messages. Dobbelmann also joined online chat rooms and platforms to discuss and trade child pornography files with others.

On March 3, 2022, Dobbelmann pleaded guilty to one count of production and attempted production of child pornography. Dobbelmann was sentenced yesterday in U.S. District Court before Senior Judge Donovan W. Frank.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was the result of an investigation conducted by the FBI with assistance from the Minnesota Bureau of Criminal Apprehension.

Assistant U.S. Attorney Sarah E. Hudleston prosecuted the case.

ST. PAUL, Minn. – A Mexican national has been sentenced to 120 months in prison after TSA agents at Minneapolis-St. Paul International Airport found firearms and methamphetamine in his luggage, announced United States Attorney Andrew M. Luger. 

According to court documents, on October 29, 2021, Kevin Alan Aguilar-Moreno, 21, attempted to board a Delta Airlines flight from Minneapolis to Phoenix, checking two suitcases prior to boarding. Transportation Security Administration (TSA) screening determined that Aguilar-Moreno’s luggage contained approximately one kilogram of methamphetamine; a FN, Model 509 9x19 pistol; a Rock Island Armory, 1911 A1-FS pistol; an AR-15 type firearm with no serial number; eight rifle and handgun magazines; and 241 rounds of .223 ammunition, of which 39 were armor piercing ammunition. Aguilar-Moreno admitted that he obtained the narcotics from an individual in Red Wing, Minnesota, and was planning to sell them in Phoenix, Arizona.

Law enforcement determined that the AR-15 type firearm was a privately made firearm (PMF). These firearms are commonly known as “ghost guns” because they do not have serial numbers, which makes them difficult for law enforcement to trace.

On March 30, 2022, Aguilar-Moreno pleaded guilty to one count of possession with intent to distribute methamphetamine. Aguilar-Moreno was sentenced today in U.S. District Court before Judge Eric C. Tostrud.  

This case was the result of an investigation conducted by Homeland Security Investigations, Transportation Security Administration, the Minneapolis-St. Paul Airport Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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

MINNEAPOLIS – A federal grand jury returned an indictment against a Chicago man for possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents and a law enforcement affidavit, on June 21, 2022, a St. Paul police officer responded to an apartment after receiving a 911 call reporting a domestic incident. The officer encountered Allen Denzel Oliver-Hall, 27, sitting on a couch with a stolen American Tactical 92 9mm pistol between his legs. Oliver-Hall did not comply when the officer ordered him to put his hands up and a struggle ensued, with Oliver-Hall pointing the handgun at the officer. Eventually, the officer was able to gain control of the gun and take Oliver-Hall into custody. Because Oliver-Hall has multiple prior felony convictions in Cook County, Illinois, he is prohibited under federal law from possessing firearms or ammunition at any time.

Oliver-Hall is charged with one count of possessing a firearm as a felon. He made his initial appearance in U.S. District Court on August 2, 2022, before Magistrate Judge John Docherty.

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

Assistant U.S. Attorney Laura M. Provinzino 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 federal grand jury returned an indictment against a Ramsey man for an armed carjacking and possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, on June 4, 2022, Joshua Gunnar Olson, 31, armed with a Glock 19 9mm handgun, used force, violence, and intimidation to steal a black 2011 Dodge Grand Caravan from the vehicle’s owner. Olson has multiple prior felony convictions in Cass, Crow Wing, and Aitkin Counties and is therefore prohibited from possessing firearms or ammunition at any time.

Olson is charged with one count of carjacking, one count of possessing a firearm as a felon, and one count of brandishing a firearm during and in relation to a crime of violence. He made his initial appearance in U.S. District Court on August 1, 2022, before Magistrate Judge John Docherty.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota State Patrol, the Anoka Police Department, the Ramsey Police Department, the Elk River Police Department, the Champlin Police Department, the Ramsey County Sheriff’s Office, and the Anoka County Sheriff’s Office.

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.

MINNEAPOLIS – Two Minneapolis men have been arrested and charged in a 30-count superseding indictment for their roles in a series of violent carjackings and armed robberies targeting Uber and Lyft drivers, announced U.S. Attorney Andrew M. Luger.

“As outlined in the superseding indictment, these defendants targeted and terrorized Uber and Lyft drivers. These carjackings were not one offs or random opportunities for joyriding; they were organized, calculated, violent crimes,” said U.S. Attorney Luger. “I want to acknowledge the collaborative work of federal, state, and local law enforcement in investigating and charging this violent carjacking ring.”

According to court documents, between September and October 2021, Eric Harrell Knight, 19, and Javeyon Demario Tate, 21, along with their co-conspirators Shevirio Kavirion Childs-Young, 18, and William Charles Saffold, 20, engaged in a series of violent carjackings and armed robberies, targeting Uber and Lyft drivers. As part of the scheme, members of the conspiracy lured victim-drivers to particular locations under the guise of picking up or dropping off passengers. When the victim-drivers arrived, members of the conspiracy brandished firearms and demanded the cell phones and wallets of the victim-drivers. Members of the conspiracy forced the victim-drivers at gunpoint to unlock their cell phones and provide passcodes. The conspiracy members then transferred money, via Cash App or other applications, from the accounts of the victim-drivers to the accounts of members of the conspiracy. Members of the conspiracy then carjacked the victim-drivers at gunpoint. To intimidate and force compliance, members of the conspiracy struck, pistol whipped, and threatened to kill the victim-drivers. 

All four defendants are charged with conspiracy, brandishing firearms during and in relation to a crime of violence, aiding and abetting carjacking, and aiding and abetting interference with commerce by robbery (Hobbs Act).  The superseding indictment also charges Saffold with assault on a federal law enforcment officer with a Polymer 80 9 mm pistol. Additionally, Tate is charged with unlawful possession of a machinegun: a Glock model 21 .45 caliber pistol equipped with an auto sear. 

Knight and Tate made their initial appearances earlier today in U.S. District Court before Magistrate Judge David T. Schultz. Both defendants were ordered to remain in custody pending detention hearings. Childs-Young and Saffold were indicted on April 26, 2022, and will remain in custody pending further proceedings.

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

U.S. Attorney Andrew M. Luger and Assistant U.S. Attorney Thomas Calhoun-Lopez 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.

MINNEAPOLIS – Geryiell Lamont Walker, II has been sentenced to 60 months in prison, and Jeffrey Paul Jackson has been sentenced to 48 months in prison, for their roles in a scheme that illegally straw purchased dozens of firearms over a one-year period, announced United States Attorney Andrew M. Luger. 

According to court documents, between approximately May 2020 and May 2021, Walker, 23, Jackson, 32, and their co-defendant Sarah Jean Elwood, 34, conspired together to illegally purchase dozens of firearms from various Federal Firearms Licensees (FFL) in the State of Minnesota and to provide these firearms to individuals whom they knew could not lawfully possess them. As part of the straw purchasing scheme, Elwood, who at the time had a permit-to-carry firearms, would go to various FFLs and purchase multiple firearms on behalf of Walker and others, who requested the firearms through Jackson and often provided the funds in advance of, or immediately after, the purchases. In making the purchases, Elwood knowingly misrepresented to the licensed dealers that she was the actual purchaser of the firearms, when in fact she and her co-defendants knew she was not. Walker, Jackson, and others helped arrange the deals, which included a $100 fee for each straw purchased gun. In total, the defendants illegally straw purchased approximately 95 firearms, including approximately 62 firearms in May 2021 alone. To date, 18 of these firearms have been recovered by local and federal law enforcement at various crime scenes or in the possession of persons legally prohibited from possessing firearms.

Walker was sentenced yesterday in U.S. District Court before Senior Judge Ann D. Montgomery. Jackson was sentenced on April 26, 2022. Elwood is scheduled to be sentenced on September 14, 2022.

Straw purchasing typically involves a buyer who is legally permitted to purchase firearms from an FFL, but who then unlawfully provides the purchased firearm to another person who is prohibited from purchasing or possessing firearms. By making a straw purchase, the buyer enables a prohibited person – typically a convicted felon – to illegally obtain a firearm and avoid the national background check system.

This case was made possible in part by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

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

Assistant U.S. Attorney Benjamin Bejar prosecuted the case.

MINNEAPOLIS – A Duluth man was sentenced to 102 months in prison, three years of supervised release, and $284,355.54 in restitution for wire fraud and aggravated identity theft, announced United States Attorney Andrew M. Luger. 

According to court documents, between April 2020 and August 2020, Jared John Fiege, 35, devised and executed a scheme to fraudulently obtain funds through Minnesota’s Unemployment Insurance (UI) program and the SBA’s Economic Injury Disaster Loan (EIDL) Program. As part of the scheme, Fiege submitted fraudulent applications for UI benefits and EIDL assistance by using stolen names, birth dates, and social security numbers of at least 25 individuals. In applying for EIDL assistance and advances, Fiege also invented fictional business entities, which he linked to the identities of real persons without their knowledge or consent. As part of the scheme, Fiege possessed multiple burner cell phones and registered numerous email addresses which he used to impersonate others. Fiege was also found in possession of photoshopped passports, utility bills, and other documents he used for identity verification for the programs he targeted. In order to withdraw the significant amounts of cash that were disbursed through the programs he targeted, Fiege established bank accounts in other peoples’ names, and requested bank cards to be issued by mail, which he had sent to real addresses where he would then intercept the mail before the actual residents had a chance to. 

On July 14, 2021, Fiege pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Fiege was sentenced yesterday in U.S. District Court before Senior Judge Michael J. Davis. During the pendency of the federal case, Fiege also pled guilty in two separate stalking cases involving different women in Washington County, Minnesota and St. Louis County, Minnesota.

This case was the result of an investigation conducted by the United States Postal Inspection Service, the Small Business Administration Office of the Inspector General, the Minnesota Bureau of Criminal Apprehension, and the Duluth Police Department.

Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.

ST. PAUL, Minn. – The Justice Department announced today that former Minneapolis Police Officer Tou Thao, 36, was sentenced to serve 42 months in prison, and former Minneapolis Police Officer J. Alexander Kueng, 28, was sentenced to serve 36 months in prison, for depriving George Floyd Jr. of his constitutional rights.

On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Thao and Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former Minneapolis Police Department (MPD) Officer Derek Chauvin’s use of unreasonable force. The jury also found that Thao and Kueng deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when they saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him.  The jury further found that both of these offenses resulted in Floyd’s bodily injury and death. Both offenses are violations of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity.

The same jury also found former MPD Officer Thomas Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to Floyd and his death. On July 21, 2022, Lane was sentenced to 30 months in prison for this offense.

Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, 2022, Chauvin was sentenced to 252 months in prison for those crimes. 

“All four officers involved in the tragic death of George Floyd have now been convicted in federal court, sentenced to prison, and held accountable for their crimes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “George Floyd’s death could have been prevented if these defendants had carried out their affirmative duty to intervene to stop another officer’s use of deadly force. While these defendants have now been held accountable, law enforcement officers and leaders must take seriously the affirmative duty under the Constitution to intervene to stop misconduct by fellow officers and the duty to render medical aid. The federal prosecution of all officers tied to the death of George Floyd should send a clear and powerful message that the Department of Justice will never tolerate the unlawful abuse of power or victimization of Americans by anyone in law enforcement.”

“Former officers Thao and Kueng each had an individual duty and opportunity to intervene in the excessive force that resulted in the agonizing death of Mr. Floyd, but both men failed to take any action,” said U.S. Attorney Andrew M. Luger. “These sentences reaffirm that every law enforcement officer, whether rookie or senior, has an affirmative duty to protect individuals in their custody.” 

This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.

MINNEAPOLIS – A federal grand jury returned an indictment against a St. Paul man for illegally possessing a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents, on May 2, 2022, Terrance Terrell Lane, 25, was found to be in possession of a Glock 30, .45 caliber handgun, equipped with an extended magazine and an auto sear, a device that turns a semi-automatic firearm into a fully automatic firearm. Because Lane has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.

Lane is charged with one count of possessing a firearm as a felon. He made his initial appearance in U.S. District Court yesterday before Magistrate Judge David T. Schultz.

This case was jointly investigated by the FBI, the Minneapolis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, the Hennepin County Violent Offenders Task Force, the Minnesota Bureau of Criminal Apprehension, Dakota County Probation, and Hennepin County Probation.

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 federal grand jury returned an indictment against a Robbinsdale man for illegally possessing a firearm, announced U.S. Attorney Andrew M. Luger.

According to court documents, Tavaris Michael Dixon, 32, is a member of the Tre Tre Crips, a Minneapolis gang that engages in a variety of criminal activities such as murder, assaults, robberies, drive-by shootings, carjackings, and other firearm offenses. On June 22, 2022, law enforcement encountered Dixon in possession of a 9mm Glock semiautomatic pistol, equipped with a laser attachment. Because Dixon has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.

Dixon is charged with one count of possessing a firearm as a felon. Magistrate Judge Tony N. Leung has ordered Dixon to remain in detention pending further court proceedings.

This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Edina Police Department.

Assistant U.S. Attorney Justin A. Wesley 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 – An Isanti man has pleaded guilty to stealing multiple firearms from shipments destined for Federal Firearms Licensee (FFL) businesses, announced U.S. Attorney Andrew M. Luger.

According to court documents, beginning in August 2021, law enforcement began receiving notifications of firearm thefts from shipments to FFLs. The carrier for the firearms shipments was XPO Logistics, a logistics company with facilities in St. Cloud and Fridley. On March 9, 2022, XPO Logistics contacted the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to report an additional 11 firearms were solen from a recent shipment, including one Century Arms model Draco NAK 9 9mm semiautomatic AK pistol and ten Canik model Rival 9mm semiautomatic pistols. ATF agents later obtained surveillance video showing Jason Thomas Cikotte, who was then working as a weight inspector at the company, removing the firearms from pallets.

According to court documents, law enforcement executed a search warrant at Cikotte’s Isanti residence. Inside the house, law enforcement found the 11 stolen firearms, as well as other firearms and accessories. ATF agents determined that Cikotte had stolen a total of 185 firearms.

Cikotte pleaded guilty before Senior U.S. District Judge Ann D. Montgomery to one count of theft of firearms. A sentencing hearing is scheduled for November 17, 2022.

This case is the result of an investigation conducted by the ATF and the Isanti Police Department.

Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.

MINNEAPOLIS – A Cottage Grove man was sentenced to 57 months in prison followed by three years of supervised release for bank robbery, announced U.S. Attorney Andrew M. Luger.

According to court documents, in November 2021, Michael Thomas Prall, 43, used force, violence, and intimidation to steal thousands of dollars from three separate banks. On November 30, 2021, Prall entered a Wells Fargo bank in Cottage Grove, and presented a note to the teller directing the teller to give him the money in her cash drawer. Prall threatened that if the teller did not quickly do as he asked, he would shoot her or someone else in the bank. The teller complied with the Prall’s demand, and the defendant fled on foot. Law enforcement located and arrested Prall following a short foot chase.

According to court documents, Prall was also responsible for a bank robbery on November 5, 2021, at a U.S. Bank in Bloomington, where he stole $2,558 and a November 19, 2021, robbery at a Bremer Bank in Woodbury, where he stole approximately $4,589.

Prall was sentenced yesterday by Chief U.S. District Judge Patrick J. Schiltz. Prall pleaded guilty to one count bank robbery on March 22, 2022.

This case is the result of an investigation conducted by the FBI, the Cottage Grove Police Department, the Woodbury Police Department, the Bloomington Police Department, and the Washington County Sheriff’s Office, with assistance from the Washington County Attorney’s Office.

Assistant U.S. Attorney Alexander D. Chiquoine prosecuted the case.

St. Paul, Minn. - The Justice Department announced today that former Minneapolis Police Officer Thomas Lane, 39, was sentenced to serve 30 months in prison and two years of supervised release for depriving George Floyd Jr., of his constitutional rights.

On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when Lane saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him. The jury found that Lane’s failure to act resulted in bodily injury to and the death of Floyd.  This offense is a violation of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity. Lane was sentenced today in U.S. District Court by Senior Judge Paul A. Magnuson.

The same jury also found former Minneapolis Police Department (MPD) Officers Tou Thao and J. Alexander Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when Thao and Kueng each willfully failed to intervene to stop former MPD Officer Derek Chauvin’s use of unreasonable force, resulting in bodily injury to and the death of  Floyd. Thao and Kueng were also found to have deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to and the death of Floyd. A sentencing hearing for Thao and Kueng has not yet been scheduled.

Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, 2022, Chauvin was sentenced to 252 months in prison for those crimes.

“The tragic death of George Floyd makes clear the fatal consequences that can result from a police officer’s failure to intervene to protect people in their custody,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Had this defendant and other officers on the scene with Derek Chauvin taken simple steps, George Floyd would be alive today. This sentence should send a message that protecting people in custody is the affirmative duty and obligation of every law enforcement officer, regardless of one’s rank or seniority.”

“In the critical last minutes of George Floyd’s life, former officer Lane understood the seriousness of the situation,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “He knew that Mr. Floyd was in grave need of medical care, but he chose passivity rather than action. As a sworn law enforcement officer, he failed to uphold his duty to step in and save a man’s life.”

This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter for the District of Minnesota.  

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MINNEAPOLIS – A Minneapolis woman has pleaded guilty to misappropriating and adulterating prescription morphine while working as a pharmacist, announced U.S. Attorney Andrew M. Luger.

According to court documents, on October 30, 2019, Jennifer Lee Draheim, 42, a pharmacist at Coburn’s Pharmacy in Ramsey, removed a bottle of morphine sulfate from the Scheduled Drug Cabinet and poured a quantity of the morphine from the stock bottle into a small container for her own personal use. She added water to the bottle to replace the morphine she took, thereby reducing the drug’s quality and strength. Draheim returned the diluted bottle of morphine to the Scheduled Drug Cabinet, where it was held in the pharmacy’s inventory for the purpose of filling customer prescriptions.

“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly adulterate medicines put patients’ health at risk,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort.”

“The diversion of pharmaceuticals is a dangerous path that can lead to addiction, overdose and even death,” DEA Omaha Division Special Agent in Charge Justin C. King said. “We take diversion seriously as it impacts the person misusing the medication and also those for whom the prescription was intended. In this case, Jennifer Draheim’s actions put her life in danger and also affected those who were in need of morphine sulfate but instead received a tainted, watered-down medication. We applaud Coborn’s Inc., for alerting authorities to the diversion and our partners in the FDA for their work on this investigation.”

Draheim pleaded guilty yesterday before U.S. District Judge Nancy E. Brasel to one count of adulteration of a drug. A sentencing hearing will be scheduled at a later time.

This case is the result of an investigation conducted by the U.S. Food and Drug Administration and the U.S. Drug Enforcement Administration.

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

MINNEAPOLIS – A Maplewood man was sentenced to 77 months in prison followed by three years of supervised release for illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, on October 12, 2021, Metro Transit Police Officers were dispatched to a report of a vehicle stuck on the light rail tracks in St. Paul. At the scene they found Deandre Lenier Neal-Hill, 35, unconscious in the driver’s seat of a maroon Chevrolet Malibu. The vehicle, with the engine still running, had a flat tire and was stuck in the tracks. Officers removed an unresponsive Neal-Hill from the vehicle and began preforming emergency medical aid until the paramedics arrived and took him to a hospital.

According to court documents, as officers extracted Neal-Hill from the vehicle, they observed a black handgun on the floorboard on the driver’s side of the vehicle, which was later determined to be an FNH USA model 503 9mm semiautomatic pistol. Neal-Hill’s pistol was loaded with one round in the chamber and seven bullets in the inserted magazine. Neal-Hill was also in possession of marijuana, methamphetamine, and oxycodone pills.

Neal-Hill has prior felony convictions, including convictions of drive-by shooting, assault, and drug sale, therefore he is prohibited under federal law from possessing firearms or ammunition at any time.

Neal-Hill was sentenced today in U.S. District Court by Judge Wilhelmina Wright. Neal-Hill pleaded guilty to one count of illegal possession of a firearm as a felon.

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

Assistant U.S. Attorneys Matthew S. Ebert and Thomas Calhoun-Lopez prosecuted the case.

ST. PAUL, Minn. – A Hugo man has pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.

According to court documents, on March 1, 2022, law enforcement responded to the Robbinsdale and Crystal area after receiving multiple calls of shots fired in the vicinity. Officers apprehended Brannen Michael Stafford, 34, who was armed with a fully automatic, Glock 17 nine-millimeter handgun tucked in his waistband. Police found several nine-millimeter shell casings on Highway 100 in the same vicinity. Officers later searched a Ford F-150 that Stafford and another man had been driving. They seized another Glock nine-millimeter handgun, 100 rounds of nine-millimeter ammunition, and approximately six pounds of methamphetamine.

Stafford pleaded guilty earlier today before U.S. District Judge Susan Richard Nelson to one count of possession with the intent to distribute methamphetamine and one count of carrying a firearm during and in relation to a drug trafficking crime. 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, the U.S. Drug Enforcement Administration, the Robbinsdale Police Department, and the Crystal Police Department.

Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.

MINNEAPOLIS – A former Ontario Provincial Police officer was sentenced to 120 months in prison followed by 10 years of supervised release for abusive sexual contact with two minors at the Fortune Bay Resort and Casino on the Bois Forte Indian Reservation, announced United States Attorney Andrew M. Luger. 

According to court documents, on June 22, 2018, Brady John Hillis, 33, a citizen of Canada, was at the Fortune Bay Resort and Casino on the Bois Forte Indian Reservation. Hillis was captured on Fortune Bay’s security surveillance video engaging in sexual contact with two minor victims who were under 12 years of age.

Hillis was sentenced today in U.S. District Court before Judge John R. Tunheim. On January 18, 2022, Hillis pleaded guilty to two counts of abusive sexual contact with a child under 12 years of age.

This case was the result of an investigation conducted by the FBI and the Bois Forte Police Department.

Assistant U.S. Attorney Deidre Y. Aanstad prosecuted the case.

WASHINGTON – Today, during remarks at the Trilateral Working Group on Violence Against Indigenous Women and Girls, Deputy Attorney General Lisa O. Monaco announced a directive to all U.S. Attorneys and law enforcement component heads addressing public safety in Indian country, including violence directed at indigenous women, youth and children.  

In a memorandum, Deputy Attorney General Monaco declared it a priority of the Department of Justice to address the disproportionately high rates of violence experienced by American Indians and Alaska Natives, and relatedly, the high rates of indigenous persons reported missing. The memorandum directs each U.S. Attorney with Indian country jurisdiction — along with their law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the FBI and the U.S. Marshals Service (USMS) — to update and develop new plans for addressing public safety in Indian country.  

“With this memorandum, we are reaffirming the department’s unwavering commitment to promoting public safety in Indian Country and to respecting Tribal sovereignty,” said Deputy Attorney General Lisa O. Monaco. “Tribes know best how to make their communities safer, and Tribal engagement has thus been the cornerstone of the department’s review of its policies and procedures. Federal law enforcement agencies will continue to work diligently with our Tribal partners in support of public safety in Indian Country.”

In November 2021, the department established a Steering Committee dedicated to marshalling the department’s resources and personnel to address public safety and the issues of missing or murdered indigenous persons. The Steering Committee undertook a review — in close consultation with Tribal leaders and stakeholders — of the department’s relevant guidance, policies and practices to improve the law enforcement response in Indian country.  

Today’s memorandum marks the first guidance from the Deputy Attorney General to U.S. Attorneys in Indian country since 2010, when then-Deputy Attorney General David Ogden required each U.S. Attorney with Indian country jurisdiction to establish a structure and plan for addressing public safety in Indian country. Deputy Attorney General Monaco’s memorandum sets forth needed updates, which account for significant legal and legislative developments in the intervening decade, including the Tribal Law and Order Act of 2010, Savanna’s Act, the Not Invisible Act of 2019 and the 2013 and 2022 reauthorizations of the Violence Against Women Act. The memorandum also recognizes that the department’s law enforcement components are essential to investigating crimes in Indian country, and it directs those agencies to adopt their own guidelines, policies and protocols to address the unique public safety challenges in Indian country. 

In particular, the memorandum instructs department prosecutors and law enforcement officers to update their operational plans, policies, and protocols to:

• Coordinate with Tribal, State and local law enforcement officers, as well as other federal agencies;
• Support victims, survivors and their families in a victim-centered and culturally-appropriate manner; and
• Address cases, including unresolved cases, involving missing or murdered indigenous people.

The memorandum also directs U.S. Attorneys Offices and law enforcement agencies to engage with Tribes to better address priority public safety issues, including combatting violence against women, youth and children and addressing the devastating consequences of drug trafficking and substance use disorder in Indian country. 

You can read the full text of the memorandum here.

MINNEAPOLIS – A Brooklyn Center man has been indicted for wire fraud after filing fraudulent insurance claims for a staged arson, announced U.S. Attorney Andrew M. Luger.

According to court documents, on September 23, 2020, Denis Vladmirovich Molla, 29, falsely reported to law enforcement that someone had lit his camper on fire. Molla reported that his garage door was vandalized with spray painted graffiti stating, “Biden 2020,” “BLM,” and an Antifa symbol, and that his camper was targeted because it had a Trump 2020 flag displayed on it. In reality, Molla started his own property on fire and spray painted the graffiti on his own garage.

According to court documents, Molla submitted multiple insurance claims seeking coverage for the damage to his garage, camper, vehicles, and residence caused by the fire. When Molla’s insurance company denied some of those claims, Molla submitted written complaints to the insurance company claiming that it was defrauding him and threatened to report the company to the Department of Commerce and to the Attorney General. Molla also created and allowed others to create two GoFundMe accounts to benefit Molla and his family. In total, Molla submitted more than $300,000 in fraudulent insurance claims, and he received approximately $61,000 from his insurance company. Molla also received more than $17,000 from individual donors via GoFundMe.

Molla is charged with two counts of wire fraud. He made his initial appearance in U.S. District Court earlier today before Magistrate Judge Tony N. Leung.

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

Assistant U.S. Attorneys Angela M. Munoz and Kimberly A. Svendsen 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 Jeffers, Minnesota, man has been indicted for defrauding grain purchasers by selling non-GMO grains falsely labeled as organic, announced U.S. Attorney Andrew M. Luger.

According to court documents, between 2014 and 2020, James Clayton Wolf, 64, a certified organic farmer, engaged in a scheme to defraud grain purchasers by selling them non-GMO grains falsely represented as organic. Wolf, who did not hold a legally required grain buyer’s license, repeatedly purchased non-organic corn and soybeans from a grain seller and resold the grain as organic product. As part of his scheme, Wolf also grew conventionally farmed crops using chemical fertilizers and pesticides, in violation of organic farming standards. Wolf provided grain purchasers with copies of his National Organics Program certification but withheld the material fact that the grains were not organically farmed. As a result of his fraud scheme, Wolf received more than $46,000,000 in payments from grain buyers.

Wolf is charged with three counts of wire fraud. He will make his initial appearance in U.S. District Court before Magistrate Judge David T. Schultz on July 22, 2022.

This case is the result of an investigation conducted by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) and the FBI.

Assistant U.S. Attorney Robert M. Lewis 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 West St. Paul man has been indicted for cocaine and methamphetamine trafficking and firearms violations, announced U.S. Attorney Andrew M. Luger.

According to court documents, on two separate occasions between January 2021 and May 2022, Christopher Allen Stengle, 32, possessed quantities of cocaine and methamphetamine as well as two semiautomatic pistols. Because Stengle has multiple prior felony convictions in Ramsey, Anoka, and Washington Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

Stengle is charged with one count of possession with intent to distribute cocaine, one count of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking, one count of carrying a firearm in relation to drug trafficking, and two counts of possessing a firearm as a felon. Stengle, who appeared in U.S. District Court before Magistrate Judge Tony N. Leung, will remain in custody pending further court proceedings.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Eagan Police Department, and the Minnesota Department of Corrections Fugitive Unit.

Assistant U.S. Attorney Evan B. Gilead 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 Minneapolis man was sentenced to 210 months in prison followed by five years of supervised release for the armed robberies of two Speedway gas stations and a Super 8 Hotel, announced U.S. Attorney Andrew M. Luger.

According to court documents, on February 4, 2020, Keanu Dewone Ross, 30, entered a Speedway gas station in Columbia Heights, pulled what appeared to be a firearm, and demanded cash from the register and the safe. Ross stole $140 in cash, various tobacco products, and several lottery tickets, before fleeing the scene in a waiting SUV parked several blocks away with his co-defendant, Antoinette Deniece Mae Dobyne, 30. On February 12, 2020, Ross entered a Speedway in Fridley, pulled what appeared to be a firearm, and demanded cash from the register. Ross ordered the employee to the ground and kicked the employee in the face. Ross fled the store with more than $700 in cash, tobacco products, and lottery tickets.  On three separate days in February, surveillance camera footage showed Ross and Dobyne cashing some of the stolen lottery tickets at two different gas stations.

According to court documents, on February 14, 2020, Ross and another man were driven to the area of the Super 8 Hotel in Brooklyn Center by Dobyne in her SUV.  The men entered the hotel and ordered a hotel employee to the ground at gunpoint. Ross and the other man took the employee’s cell phone and car keys, and over $550 cash from the business. The men then told the employee to run from the scene. As the employee fled on foot, he heard gunshots. Officers recovered a discharged .380-caliber cartridge casing at the scene of the robbery. Surveillance camera footage showed the two men committing the robbery as described by the employee. The footage also showed the two men running from the hotel after the robbery toward an SUV and then fleeing on foot after the SUV got stuck in a snowbank. BCPD officers located Dobyne in the SUV at the scene. A warrant-authorized search of the SUV revealed Ross’s wallet and identification, and a black duffle bag full of various tobacco products.

According to court documents, later that same day, Ross was detained during a traffic stop by officers with the Minneapolis Police Department. Officers confiscated a Taurus Model PT738 .380-caliber semiautomatic pistol that was found on Ross’s person along with a large amount of cash. Subsequent forensic ballistics analysis using the discharged .380-caliber cartridge casing recovered at the scene of the hotel robbery revealed that the firearm confiscated from Ross’s person was the same gun that was fired during the Super 8 Hotel robbery. On January 19, 2022, Ross pleaded guilty to three counts of aiding and abetting interference with commerce by robbery and one count of using, carrying, and discharging a firearm during and in relation to a crime of violence. He was sentenced yesterday by Senior U.S. District Judge David S. Doty and ordered to pay more than $1,850 in restitution to the businesses that were robbed. Dobyne’s sentencing hearing will be scheduled at a later date.

This case was the result of an investigation conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, and Firearms, the Minneapolis Police Department, the Bureau of Criminal Apprehension, the Brooklyn Center Police Department, the Columbia Heights Police Department, the Fridley Police Department, and the Hennepin County Crime Lab.

Assistant U.S. Attorney Benjamin Bejar prosecuted the case.

MINNEAPOLIS – Three men have been indicted for their roles in an insider trading conspiracy involving a medical device company’s nonpublic business acquisition deal.

According to court documents, beginning in January 2018 through at least August 2020, Doron “Ron” Tavlin, 66, of Minneapolis, Afshin “Alex” Farahan, 55, of Los Angeles, and David Gantman, 56, of Mendota Heights, willfully engaged in an insider trading conspiracy. The conspiracy involved nonpublic information about the acquisition of Company B, an Israeli-based company that specialized in robotics for spinal procedures, by Company A, an Ireland-based medical device company that primarily operated from its executive headquarters in Minneapolis. Tavlin, a former vice president of Company B, learned material, nonpublic information about Company A’s potential acquisition of Company B. In violation of his duty to the company, Tavlin tipped this information about the acquisition to his friend, Farahan, who then tipped the information to Gantman. The defendants knew that Company A’s imminent acquisition of Company B would likely result in an increase in Company B’s stock price. Farahan and Gantman used the nonpublic information to purchase quickly substantial amounts of Company B securities throughout August and September 2018. On September 21, 2018, the day after Company B publicly announced its acquisition by Company A, Farahan and Gantman each sold all of their Company B securities for a total profit of more than $500,000.

According to court documents, in October 2018, Tavlin learned that the Financial Industry Regulatory Authority (FINRA) was investigating certain trades of Company B securities that occurred prior to the publicly announced acquisition. As part of its inquiry, FINRA asked insiders who knew about the secret acquisition negotiations, which included Tavlin, whether they knew any of the parties who traded in Company B securities leading up to the public announcement. In January 2019, Tavlin responded to FINRA’s inquiry by falsely denying that he recognized any names on a list of persons and entities that purchased Company B securities, which included Farahan and Gantman’s names.

According to court documents, it was part of the insider trading conspiracy that Tavlin and Farahan agreed that Farahan would pay money to Tavlin in exchange for the material, nonpublic information that Tavlin provided to Farahan. For example, in October 2019, Farahan gave Tavlin a $25,000 check in exchange for the information that Tavlin had provided about Company B leading up to the acquisition.

The defendants are charged with conspiracy to engage in insider trading, securities fraud in the form of insider trading, and aiding and abetting securities fraud. Tavlin and Gantman made their initial appearances yesterday in U.S. District Court before Magistrate Judge Tony N. Leung. Farahan will make his initial appearance at a later date.

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

Assistant U.S. Attorneys Matthew S. Ebert and Kimberly A. Svendsen 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.