District of Minnesota

Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald today announced the unsealing of a six-count federal indictment against SEYED SAJJAD SHAHIDIAN, 33, VAHID VALI, 33, and PAYMENT24 for conducting financial transactions in violation of U.S. sanctions against Iran. The defendants were charged with conspiracy to commit offenses against and to defraud the United States, wire fraud, money laundering, and identity theft. SHAHIDIAN, who was arrested and extradited from the United Kingdom, made his initial appearance earlier today before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota. VALI remains at large.

According to the allegations in the indictment, PAYMENT24 was an internet-based financial services company with approximately 40 employees and offices in Tehran, Shiraz, and Isfahan, Iran. The primary business of PAYMENT24 was helping Iranian citizens conduct prohibited financial transactions with businesses based in the United States, including the unlawful purchase and exportation of computer software, software licenses, and computer servers from United States companies. According to PAYMENT24’s website, the company charged a fee to circumvent “American sanctions,” and claimed to have brought in millions of dollars of foreign currency into Iran.

According to the allegations in the indictment, beginning in or before 2009 through November 2018, SHAHIDIAN, the founder and Chief Executive Officer of PAYMENT24, conspired with VALI, the Chief Operating Officer of PAYMENT24, and other individuals to commit offenses against the United States by violating the restrictions on trade and exports from the United States to Iran. On its website, PAYMENT24 sold a package to assist its Iranian clients with making online purchases from United States-based businesses, which included a PayPal account, a fraudulent “ID card and address receipt,” a remote IP address from the United Arab Emirates, and a Visa gift card. The PAYMENT24 website also offered its clients advice on how to create accounts with a foreign identity and how to avoid restrictions on foreign websites, including advising clients to “never attempt to log into those sites with an Iranian IP address.”

As part of the scheme, SHAHIDIAN and VALI made material misrepresentations and omissions to United States-based businesses regarding the destination of the United States-origin goods. In order to accomplish the transactions, SHAHIDIAN obtained payment processing accounts from United States-based companies using false residency information, fraudulent passport documents, and other false documents fabricated using the identity and personally identifiable information of another person.

Pursuant to the International Emergency Economic Powers Act (IEEPA), unauthorized exports of goods, technology or services to Iran, directly or indirectly from the United States or by a United States person are prohibited.

This case is the result of an investigation conducted by the Minneapolis Division of the FBI. The Criminal Division’s Office of International Affairs secured the extradition from the United Kingdom with significant assistance from law enforcement authorities in the United Kingdom.

Assistant U.S. Attorneys Timothy C. Rank and Charles J. Kovats of the District of Minnesota and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

 

Defendant Information:

SEYED SAJJAD SHAHIDIAN, a/k/a “Soheil Shahidi,” 33

Shiraz, Iran

Charges:

• Conspiracy to Defraud and Commit Offenses against the United States, 1 count
• Wire Fraud, 2 counts
• Conspiracy to Commit Wire Fraud, 1 count
• Money Laundering Conspiracy, 1 count
• Aggravated Identity Theft, 1 count

 

VAHID VALI, 33

Tehran, Iran

Charges:

• Conspiracy to Defraud and Commit Offenses against the United States, 1 count
• Wire Fraud, 2 counts
• Conspiracy to Commit Wire Fraud, 1 count
• Money Laundering Conspiracy, 1 count
• Aggravated Identity Theft, 1 count

 

PAYMENT24

Shiraz, Iran

Charges:

• Conspiracy to Defraud and Commit Offenses against the United States, 1 count
• Wire Fraud, 2 counts
• Conspiracy to Commit Wire Fraud, 1 count
• Money Laundering Conspiracy, 1 count
• Aggravated Identity Theft, 1 count

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

United States Attorney Erica H. MacDonald today announced a federal criminal complaint charging OMAR DAMACIO RUIZ-PENALOZA, 30, with possession with intent to distribute more than 110 pounds of methamphetamine. RUIZ-PENALOZA made his initial appearance today, before Magistrate Judge David T. Schultz, in U.S. District Court in Minneapolis, Minnesota. RUIZ-PENALOZA was ordered detained pending further proceedings.

According to the allegations in the criminal complaint, on May 8, 2020, law enforcement officers executed a search warrant at an apartment in Shoreview, Minnesota. Upon entry, the officers discovered RUIZ-PENALOZA in a bedroom wearing rubber gloves and appeared to be weighing and packaging suspected methamphetamine. Additionally, officers observed an open suitcase containing numerous bags of suspected methamphetamine lying on the floor and a digital scale. Officers discovered a second suitcase in the living room of the apartment which also contained suspected methamphetamine. In total, approximately 110 pounds of methamphetamine and more than three pounds of cocaine was seized.

This case is the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force and the Drug Enforcement Administration.

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

 

Defendant Information:

OMAR DAMACIO RUIZ-PENALOZA, 30

Shoreview, Minn.

Charges:

• Possession with intent to distribute methamphetamine, 1 count

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Erica H. MacDonald today announced a federal indictment charging HAKEEM ALEXANDER COLES, 25, with assault of a person assisting federal law enforcement officers.1] COLES, who remains in custody, will make his initial appearance and be arraigned before a Magistrate Judge in U.S. District Court in Minneapolis, Minnesota at a later date.

According to the allegations in the indictment, on January 27, 2020, COLES physically assaulted a Sherburne County Sheriff’s Office Corrections Officer at the jail. At the time of the assault, COLES was in the United States Marshal’s custody at the Sherburne County Jail awaiting trial on charges stemming from an armed robbery of the Cowboy Jacks Bar and Grill in Minneapolis, Minnesota, on August 17, 2019.

This case is the result of an investigation conducted by the FBI, the Sherburne County Sheriff’s Office, and the United States Marshal’s Service.

Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.

Defendant Information:

HAKEEM ALEXANDER COLES, 25

Charges:

• Assault of a person assisting federal law enforcement officers, 1 count

 

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[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

United States Attorney Erica H. MacDonald today announced a federal indictment charging JEFFREY COLIN PURDY, 28, with cyberstalking and making interstate threats to injure and kidnap another person. PURDY was initially charged in a criminal complaint on March 2, 2020, and is currently in custody in the Sherburne County jail pending further court proceedings.

According to the indictment, between August 30, 2017, and February 29, 2020, PURDY used various means of interstate commerce to communicate threats to injure and kidnap. Specifically, on September 15, 2017, the Mankato Department of Public Safety received a complaint from an individual stating that she had been receiving harassing emails from PURDY, a former classmate from Minnesota State University, Mankato (“Mankato State”). While attending Mankato State, the victim declined repeated romantic advances from PURDY and eventually blocked PURDY from her cellular telephone and social media accounts. From August 30, 2017, through February 21, 2020, PURDY used Mankato State’s Silent Witness Report, an anonymous incident reporting tool, to make frequent, violent threats against the victim. An IP address used to make one of the Silent Witness Reports was traced back to PURDY. On February 29, 2020, during an interview at the Mankato Department of Public Safety, PURDY admitted to sending all the Silent Witness Reports.

This case is the result of an investigation conducted by the FBI and the Mankato Department of Public Safety, with assistance from the Blue Earth County Attorney’s Office.

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

 

Defendant Information:

JEFFREY COLIN PURDY, 28

Minneapolis, Minn.

Charges:

• Cyberstalking, 1 count
• Interstate transmission of a threat to injure the person of another, 5 counts
• Interstate transmission of a threat to kidnap the person of another, 1 count

 

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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Assistant Attorney General for National Security John C. Demers and U.S. Attorney for the District of Minnesota Erica H. MacDonald today announced that a federal grand jury sitting in Minneapolis, Minnesota, returned a single-count indictment against Muhammad Masood, 28, charging him with attempting to provide material support to a designated foreign terrorist organization.  Masood, who was initially charged in a criminal complaint on March 19, 2020, is currently in custody pending further court proceedings.

According to the indictment and documents filed in court, Masood, 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 made a new plan 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. Attorneys Andrew R. Winter and Timothy C. Rank, with assistance from Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section.

The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Erica H. MacDonald today announced that a federal grand jury sitting in Minneapolis, Minnesota, returned a single-count indictment against MUHAMMAD MASOOD, 28, charging him with attempting to provide material support to a designated foreign terrorist organization. MASOOD, who was initially charged in a criminal complaint on March 19, 2020, is currently in custody in the Sherburne County Jail pending further court proceedings.

According to the indictment and documents filed in court, MASOOD, 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 made a new plan 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. Attorneys Andrew R. Winter and Timothy C. Rank, with assistance from Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section.

The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

Defendant Information:

MUHAMMAD MASOOD, 28

Rochester, Minn.

Charges:

• Attempt to provide material support to a designated foreign terrorist organization (ISIS), 1 count

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

U.S. Attorney Erica H. MacDonald today announced the appointment of Christopher Boeckers to serve as the Missing and Murdered Indigenous Persons (MMIP) Coordinator for the District of Minnesota. As the MMIP Coordinator Mr. Boeckers’s role will be to support investigations into missing and murdered persons, consult with tribal communities to assist in the creation and implementation of community action plans, coordinate with tribal, local, state, and federal law enforcement in the development of protocols and procedures for responding to and addressing MMIP cases, and promote improvement of data collection and analyses in a multi-jurisdictional district.

“Minnesota was selected to receive one of only 11 MMIP Coordinator positions in the nation,” said U.S. Attorney Erica MacDonald. “This critical resource will enhance collaboration between tribal, state, and federal law enforcement agencies in our shared goal of putting an end to this staggering problem. Mr. Boeckers will play an important part in assisting with existing MMIP cases as well as working to prevent future ones.”

Prior to joining the U.S. Attorney’s Office, Mr. Boeckers served as a Special Agent working Indian Country and violent crime matters with the Federal Bureau of Investigation for 20 years.

On November 22, 2019, Attorney General William P. Barr launched a national strategy to address missing and murdered Native Americans. When establishing the Missing and Murdered Indigenous Persons (MMIP) Initiative the Department of Justice made an initial investment of $1.5 million to hire 11 MMIP coordinators in 11 states to serve with all U.S. Attorney’s offices in those states, and others who require assistance. In addition to Minnesota, Alaska, Arizona, Montana, Oklahoma, Michigan, Utah, Nevada, Oregon, New Mexico, and Washington state were selected.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

In honor of National Police Week, U.S. Attorney Erica H. MacDonald recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.

“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”

“The brave women and men serving as law enforcement officers put themselves on the front lines every day to keep us safe, especially now during the COVID-19 pandemic,” said United States Attorney Erica MacDonald. “This week, during National Police Week, we salute the dedicated law enforcement officers for keeping our communities safe and we pay tribute to those who made the ultimate sacrifice in the line of duty.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.

Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including two officers in the District of Minnesota.

Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019, released by the FBI on May 4, 2020.

The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 PM (EDT). To view this free online event, please visit: https://www.youtube.com/user/TheNLEOMF.

To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.

Department of Justice public service announcement: Supporting Law Enforcement During Police Week 2020 https://youtu.be/3bHlVOi3NJI

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

U.S. Attorney Erica H. MacDonald today announced that the state of Minnesota received more than $8 million in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.

The grant, awarded to the Minnesota Department of Public Safety, is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation. In addition to these funds, more than $3.6 million in funds have been allocated to local jurisdictions within the District of Minnesota. Those jurisdictions can find out if they are eligible and apply by visiting the Bureau of Justice Assistance website at https://bja.ojp.gov/funding/opportunities/bja-2020-18553. The Justice Department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.

“These funds will provide additional resources for our dedicated public safety officials as they continue to selflessly serve the public during this pandemic,” said United States Attorney Erica H. MacDonald. “Additionally, these funds are designed to be flexible to support a wide range of initiatives and projects, including purchasing protective gear and supplies, to help keep our front line officers safe.”

“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”

The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.

Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations. For a list of all awards thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

In an effort to slow the spread of COVID-19, schools across Minnesota have switched to distance learning for the time being. As a result, children of all ages have access to and are using electronic devices at an unprecedented rate. This dramatic increase in time our children spend online creates a target rich environment for child predators who use various online methods to sexually exploit our children.

The sexual exploitation and abuse of a child is a despicable crime affecting some of the most vulnerable members of our community. No child should ever have to suffer the pain of such vile acts. Regrettably, the ever growing use of technology has provided child predators with more tools and opportunities than ever to perpetrate their insidious crimes.

The online sexual exploitation of children is a massive problem. During March 2020, the onset of new distance learning methods driven by COVID-19, the National Center for Missing & Exploited Children received 2,027,520 reports of online child sexual exploitation, a 106 percent increase over March 2019. This is not just a national problem. It is a problem right here in Minnesota. In 2019, my office received a 43 percent increase in the number of online child exploitation case referrals over 2018. Thus far, our 2020 numbers remain equally and disturbingly high.

There is no specific profile for victims; rather, children across all demographics can be targeted. The only commonality is youth, as the average age of a victim is only fifteen years old.

This type of crime causes very real harm and has a lasting impact, especially on young victims. Images and videos do not easily disappear from the Internet and the long-term effects on victims and their families can be devastating.

There is also one commonality among predators:  their willingness to target some of the most vulnerable members of our society to satisfy their prurient interests. Predators seek to take advantage of the trusting nature of young people and to prey on their youth and the vulnerability that comes with growing up. They set up fake profiles on social medial apps, gaming sites and other social networking tools. They scour social media to find children willing to befriend someone they do not know. They falsely represent themselves as someone else, such as a famous person, a new kid in town, a friend of a friend, another high school student and even modeling agents. They then cultivate an online relationship with their victims, building trust to solicit the sexually explicit images. This can happen quickly. In one case, it took only thirty minutes from the time the predator met the child on Facebook messenger to when the minor victim was producing sexually explicit images and videos for the perpetrator to exploit.

I write today to raise our collective awareness of this issue as we all adjust to the rhythms of life during COVID-19. This type of exploitation thrives in secret. The more we talk about it the more effective we are at combatting these heinous crimes.

With the fact that children are spending more time online comes the need for vigilance regarding our children’s online social interaction. The threat from online child predators is both real and unobtrusive but can be mitigated by teaching our children how to use the internet safely and responsibly and by monitoring their use as appropriate for their age.

Preventing children from becoming victims is an important priority for federal law enforcement officials in Minnesota. In my office, we have a team of prosecutors who are specially trained to investigate and prosecute online child exploitation cases and work with law enforcement not only solve these crimes but to provide education and training to prevent the crimes from occurring. FBI Special Agent in Charge Rainer Drohshagen and I penned a joint letter to the Minnesota Department of Education explaining the heightened risk of online exploitation due to kids’ increased online presence and emphasizing the need for vigilance.

I encourage parents, grandparents, siblings, teachers, and all caregivers to review the library of resources deployed by our partners at the FBI regarding child exploitation and other crimes related to COVID-19 at https://www.fbi.gov/coronavirus. Additional resources and data are available from NCMEC at www.missingkids.org.

The U.S. Attorney’s Office for the District of Minnesota has engaged and continues to engage parents, teachers, community leaders and law enforcement on this issue to offer practical resources, tips and case examples, and we will continue to do so. Now more than ever, however, we need everyone to join us in the fight for our children’s safety. This is an issue that cannot be spoken about enough. The predators are relentless; therefore, we too must be relentless. Look for red flags, talk to your children, and know where to report.

 

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United States Attorney Erica H. MacDonald announced today that, during the COVID-19 crisis, the U.S. Attorney’s Office is reaffirming its commitment under the Fair Housing Act to combat sexual harassment in housing.

As the nation adopts measures to slow the spread of COVID-19, many Americans have lost their jobs, have been furloughed, or have seen a drastic reduction in their wages. As a result, many Americans have been unable to pay rent. According to a recent memo from the Attorney General, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.

“Sexual harassment by landlords, property managers, maintenance workers, and others may constitute a violation of the federal Fair Housing Act. Such behavior is despicable and it is illegal,” said U.S. Attorney Erica MacDonald. “The U.S. Attorney’s Office stands ready to investigate complaints of sexual harassment in housing and to deploy all available enforcement tools against anyone who engages in this behavior. This behavior is not tolerated in normal times, and certainly, will not be tolerated now.”

If you think you are a victim of sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, contact the Justice Department’s Civil Rights Division at (800) 896-7743 or fairhousing@usdoj.gov. Or, contact the U.S. Attorney’s Office at (612) 664-5600 or USAMN.Outreach@usdoj.gov.

Department of Justice public service announcement: Sexual Harassment in Housing Is Illegal https://www.youtube.com/watch?v=z76bA-mf7o0&t

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

United States Attorney Erica MacDonald today announced that Wisconsin Central LTD and CANADIAN NATIONAL RAILWAY COMPANY have collectively paid $1.25 million to settle a lawsuit brought by the United States for damages resulting from a 2016 wildfire in northeastern Minnesota that burned more than 973 acres in St. Louis County, 387 acres of which were national forest land.

According to the government’s allegations, on May 6, 2016, a wildfire known as the Skibo Fire ignited in St. Louis County, Minnesota, east of Hoyt Lakes, in the area of Skibo, Minnesota. The United States alleged that the fire ignited due to a railroad locomotive that experienced mechanical failure. By the time the fire was suppressed, 387 acres had been burned within the Superior National Forest, and another 585 acres belonging to St. Louis County and private landowners. The fire cost more than $1.5 million to suppress, threatened the nearby City of Hoyt Lakes and forced the evacuation of several residences in the community of Skibo, Minnesota.

The United States sought to recover damages from WISCONSIN CENTRAL LTD and CANADIAN NATIONAL RAILWAY COMPANY for their failure to maintain the equipment that started the fire. Under the settlement announced today, WISCONSIN CENTRAL LTD and CANADIAN NATIONAL RAILWAY COMPANY have paid $1.25 million to settle the dispute.

“This settlement goes a long way toward compensating the public for the expense of fighting the fire and the damage to public lands,” said U.S. Attorney Erica MacDonald. “The U.S. Attorney’s Office will continue to aggressively pursue recovery against those whose carelessness damages our precious national resources.”

“This is another reminder that everyone has an important role to play in fire prevention,” said USDA Forest Service Acting Eastern Region Regional Forester Robert Lueckel. “We all must remain vigilant, especially during fire season.”

This case was handled by the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office for the District of Minnesota and was investigated by U.S. Forest Service Law Enforcement and Investigation Division, the State of Minnesota Fire Marshall’s Office, the State of Minnesota Department of Natural Resources, and the East Range Police Department.

The case was settled prior to the United States filing suit. The claims resolved by the settlement are allegations only; there has been no determination of liability.

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

U.S. Attorney Erica H. MacDonald joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week.  This year’s observance takes place April 19-25 and features the theme, “Seek Justice | Ensure Victims' Rights | Inspire Hope.”

“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”

“I am deeply honored to lead an office, and a dedicated Victim-Witness team, that is committed to seeking justice day in and day out,” said United States Attorney Erica H. MacDonald. “This week, during National Crime Victims’ Rights Week, we have the opportunity to collectively honor victims and survivors, recommit ourselves to upholding their rights, and recognize those who work tirelessly on their behalf.”

“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”

Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.

Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.

During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns. To view and share U.S. Attorney MacDonald’s National Crime Victims’ Rights Week public service announcement, visit https://youtu.be/Pen9RPMJgOM.

This year’s commemoration began yesterday, 25 years to the day when a truck bomb exploded in front of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, taking the lives of 168 people, including 19 children, as well as injuring hundreds of others. The mass murder remains the worst act of domestic terrorism in our nation’s history and led to the establishment of the Antiterrorism Emergency Reserve, which is administered by OVC, and has been used to provide direct services to hundreds of victims of mass violence and terrorism.

“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”

This year, the annual National Crime Victims’ Service Awards Ceremony will be postponed until a time when we can honor this year’s award recipients in person. During the ceremony, OVC will present awards recognizing individuals and organizations from across the nation for their outstanding service on behalf of crime victims. The awardees will be selected from public nominations in 11 categories, including federal service, special courage, public policy, and victim services. Visit www.ovc.gov/gallery to learn more about past recipients.

For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

United States Attorney Erica H. MacDonald and Minnesota Attorney General Keith Ellison today jointly announced the formation of the Minnesota COVID-19 Action Team (MCAT), a coordinated statewide effort focused on investigating and prosecuting unlawful activity associated with the COVID-19 pandemic and enforcing all state and federal laws and executive orders to put an end to it. The MCAT urges the public to report any COVID-19-related criminal behavior, scams, price-gouging, cybercrimes, hate crimes, or other unlawful activity to the Minnesota Attorney General’s Office. The Attorney General’s Office has established a dedicated COVID-19-specific complaint form at that is live as of today. Minnesotans with any concerns or complaints about unlawful activity related to COVID-19 may also call the Attorney General’s office (651) 296-3353 or (800) 657-3787.

“Together, we are living through an extremely challenging and unprecedented time. Unfortunately, there are bad actors who seek to exploit these challenges by preying on vulnerable individuals for a quick financial profit, launching a myriad of insidious cyber scams, or carrying out bias-motivated acts of violence. This type of criminal activity is reprehensible and will not go unpunished,” said U.S. Attorney MacDonald. “The MCAT’s number one priority is the safety and security of all Minnesotans during this extremely challenging time. We are marshalling all available resources to meet that mission.”

“Now is the time for Minnesotans to turn toward each other, not against each other. The vast majority of people and businesses are doing that: they’re doing right by each other, their customers, and communities, and we thank them. But for those that aren’t — for those who are profiteering off the pandemic or using it as a pretext to attack other people — we’re not standing for it. We’re pooling all our resources to come after them and to help all other Minnesotans afford their lives and live with dignity and respect,” Attorney General Ellison said.

“Our County Attorneys appreciate the leadership of our U.S. Attorney and our Attorney General in forming this team. It is another example of the importance of coordination and cooperation between federal, state, and local prosecutors in protecting our communities,” said Robert Small, Executive Director of the Minnesota County Attorneys Association.

The MCAT, led by the U.S. Attorney’s Office for the District of Minnesota, the Minnesota Attorney General’s Office, and the Minnesota County Attorneys Association, unites the collective criminal and civil investigative and enforcement power of our federal, state, local and tribal law-enforcement agencies. The goal of the MCAT is to protect the citizens of Minnesota from any wrongdoing related the COVID-19 pandemic. Through outreach, investigation, enforcement, and prosecution, the MCAT will address reports of COVID-19-related unlawful activity, including fraud scams, price gouging, hoarding of essential medical supplies, schemes targeting economic impact payments (i.e., stimulus checks) and phishing emails and other cybercrimes. The MCAT will serve as a clearinghouse for any such reports or complaints that the public submits to the Attorney General’s Office or any federal, state, or local agency, provide for a swift and coordinated law enforcement response, and facilitate the sharing of information about COVID-19-related unlawful conduct occurring anywhere in Minnesota. Additionally, any instances of COVID-19-related hate crimes targeting specific communities and threats to and assaults upon law enforcement will be promptly investigated and referred for civil action or criminal prosecution, when appropriate. We urge the public to remain vigilant, report any wrongdoing, avoid falling victim to a scammer, and look out for your community and fellow Minnesotans. Complaints can also be submitted to the National Center for Disaster Fraud hotline at (866) 720-5721 or disaster@leo.gov.

“Let us be clear: Minnesota law enforcement remains on-duty and committed to meeting the critical mission of protecting individuals, families and communities. Ignorant, hateful attacks have no place in Minnesota and will not be tolerated. And to those who seek to make a quick buck by exploiting the fears and vulnerabilities of individuals, your illegal behavior will not be tolerated,” said U.S. Attorney MacDonald.

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

David Podell, a New Jersey chiropractor, has agreed to pay the United States $2 million to resolve False Claims Act allegations that he both knowingly billed Medicare for medically-unnecessary viscosupplementation injections and knee braces and that he received illegal kickbacks, the Justice Department announced today.  The settlement follows the government’s earlier settlement with seven former Osteo Relief Institutes (ORIs) and their owners, who agreed to pay the United States collectively more than $7.1 million to resolve their False Claims Act liability.   

“Billing for services or items that are medically unnecessary or tainted by illegal kickbacks threatens the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “The department will continue to pursue providers who seek to improperly enrich themselves at the expense of these programs, their beneficiaries, and the taxpayers.”

Podell previously owned and managed a clinic in Edgewater, New Jersey that performed viscosupplementation, among other procedures.  Along with a business partner, he also promoted a business model to other chiropractors for running and marketing a clinic that specialized in the treatment of osteoarthritis through the administration of fluoroscopic-guided viscosupplementation injections and the provision of knee braces.  This led to the formation of the ORIs.  Viscosupplementation is a treatment for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid.  Through his association with his business partner, Podell received a percentage of the ORIs’ collections. 

The government alleged that Podell caused his clinic and other ORIs to bill Medicare for viscosupplementation injections for patients who did not need them, to use multiple brands of viscosupplements successively on patients without clinical support, and to use discounted viscosupplements reimported from foreign countries.  The government also alleged that Podell caused his clinic and the ORIs to provide unnecessary custom knee braces to patients.  The government further alleged that Podell solicited and received kickbacks from a manufacturer of knee braces in exchange for ordering more of the manufacturer’s braces for his clinic.  

“When medical professionals seek to increase their revenue by improperly exploiting public healthcare programs, beneficiaries suffer and taxpayer dollars are wasted,” said U.S. Attorney Erica H. MacDonald for the District of Minnesota.  “Today’s settlement serves as another example of our commitment to address fraud and abuse in the healthcare system.”

“Medical providers have a responsibility to ensure that the products and services that they provide are medically necessary and appropriate,” said Special Agent in Charge Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region.  “Providing medically unnecessary products and services can put a patient’s health and safety at risk and waste vital taxpayer dollars.  HHS-OIG will continue to investigate and hold accountable those who put their financial interests above those of Medicare beneficiaries.”

The allegations resolved by today’s settlement were identified by a government investigation that arose out of a critical analysis of Medicare claims data.  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 Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. 

The claims asserted against this defendant are allegations only, and there has been no determination of liability.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

WASHINGTON – David Podell, a New Jersey chiropractor, has agreed to pay the United States $2 million to resolve False Claims Act allegations that he both knowingly billed Medicare for medically-unnecessary viscosupplementation injections and knee braces and that he received illegal kickbacks, the Justice Department announced today.  The settlement follows the government’s earlier settlement with seven former Osteo Relief Institutes (ORIs) and their owners, who agreed to pay the United States collectively more than $7.1 million to resolve their False Claims Act liability.  

“Billing for services or items that are medically unnecessary or tainted by illegal kickbacks threatens the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “The department will continue to pursue providers who seek to improperly enrich themselves at the expense of these programs, their beneficiaries, and the taxpayers.”

Podell previously owned and managed a clinic in Edgewater, New Jersey that performed viscosupplementation, among other procedures.  Along with a business partner, he also promoted a business model to other chiropractors for running and marketing a clinic that specialized in the treatment of osteoarthritis through the administration of fluoroscopic-guided viscosupplementation injections and the provision of knee braces.  This led to the formation of the ORIs.  Viscosupplementation is a treatment for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid.  Through his association with his business partner, Podell received a percentage of the ORIs’ collections. 

The government alleged that Podell caused his clinic and other ORIs to bill Medicare for viscosupplementation injections for patients who did not need them, to use multiple brands of viscosupplements successively on patients without clinical support, and to use discounted viscosupplements reimported from foreign countries.  The government also alleged that Podell caused his clinic and the ORIs to provide unnecessary custom knee braces to patients.  The government further alleged that Podell solicited and received kickbacks from a manufacturer of knee braces in exchange for ordering more of the manufacturer’s braces for his clinic. 

“When medical professionals seek to increase their revenue by improperly exploiting public healthcare programs, beneficiaries suffer and taxpayer dollars are wasted,” said U.S. Attorney Erica H. MacDonald for the District of Minnesota.  “Today’s settlement serves as another example of our commitment to address fraud and abuse in the healthcare system.”

“Medical providers have a responsibility to ensure that the products and services that they provide are medically necessary and appropriate,” said Special Agent in Charge Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region.  “Providing medically unnecessary products and services can put a patient’s health and safety at risk and waste vital taxpayer dollars.  HHS-OIG will continue to investigate and hold accountable those who put their financial interests above those of Medicare beneficiaries.”

The allegations resolved by today’s settlement were identified by a government investigation that arose out of a critical analysis of Medicare claims data.  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 Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. 

The claims asserted against this defendant are allegations only, and there has been no determination of liability.

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

WASHINGTON – MiMedx Group Inc. (MiMedx), a biopharmaceutical company based in Marietta, Georgia that manufactures and sells human tissue grafts, will pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting false commercial pricing disclosures to the United States Department of Veterans Affairs (VA), the Justice Department announced today. 

“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government charge a fair price for their goods,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “Government contractors will not be permitted to profit improperly at the expense of taxpayers.”

This settlement resolves allegations that MiMedx knowingly submitted false statements and disclosures to the VA regarding MiMedx’s commercial pricing practices, enabling MiMedx to charge the VA inflated prices for its human tissue graft products.  Prior to the United States’ disclosure to MiMedx of its investigation, MiMedx made a disclosure to the VA Office of Inspector General regarding its commercial sales practices. In the settlement, the United States acknowledged MiMedx’s cooperation.

“Charging inflated prices for medical products is unlawful and unethical,” said U.S. Attorney Erica MacDonald for the District of Minnesota.  “This settlement underscores the obligation of government contractors to be fair and truthful in their dealings with the United States and to prevent wasted taxpayer dollars.”

“Our nation’s veterans deserve the best healthcare products and services available and the American taxpayers deserve fair and honest pricing from government contractors,” said Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs.  “This settlement underscores VA OIG’s commitment to protecting the integrity of the VA’s healthcare system and procurement processes.”

The allegations resolved by the settlement were first brought in a lawsuit filed by former MiMedx sales representatives under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The qui tam case is captioned United States of America ex rel. Jess Kruchoski and Luke Tornquist v. MiMedx Group, Inc., 17-cv-00187 (D. Minn.).  As part of this settlement, they will receive $1,625,000 as their share of the government’s recovery.

This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, and the Office of Inspector General of the Department of Veterans Affairs.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

MiMedx Group Inc. (MiMedx), a biopharmaceutical company based in Marietta, Georgia that manufactures and sells human tissue grafts, will pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting false commercial pricing disclosures to the United States Department of Veterans Affairs (VA), the Justice Department announced today.  

“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government charge a fair price for their goods,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “Government contractors will not be permitted to profit improperly at the expense of taxpayers.”

This settlement resolves allegations that MiMedx knowingly submitted false statements and disclosures to the VA regarding MiMedx’s commercial pricing practices, enabling MiMedx to charge the VA inflated prices for its human tissue graft products.  Prior to the United States’ disclosure to MiMedx of its investigation, MiMedx made a disclosure to the VA Office of Inspector General regarding its commercial sales practices. In the settlement, the United States acknowledged MiMedx’s cooperation.

“Charging inflated prices for medical products is unlawful and unethical,” said U.S. Attorney Erica MacDonald for the District of Minnesota.  “This settlement underscores the obligation of government contractors to be fair and truthful in their dealings with the United States and to prevent wasted taxpayer dollars.”

“Our nation’s veterans deserve the best healthcare products and services available and the American taxpayers deserve fair and honest pricing from government contractors,” said Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs.  “This settlement underscores VA OIG’s commitment to protecting the integrity of the VA’s healthcare system and procurement processes.”

The allegations resolved by the settlement were first brought in a lawsuit filed by former MiMedx sales representatives under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The qui tam case is captioned United States of America ex rel. Jess Kruchoski and Luke Tornquist v. MiMedx Group, Inc., 17-cv-00187 (D. Minn.).  As part of this settlement, they will receive $1,625,000 as their share of the government’s recovery.

This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, and the Office of Inspector General of the Department of Veterans Affairs.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

The Department of Justice today announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.

Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.

“We are grateful for the extraordinary services our law enforcement professionals continue to perform to keep our communities safe during this difficult time in our nation,” said United States Attorney Erica H. MacDonald. “I am thankful for this influx of funding, which should relieve some potential financial hardships agencies may be facing as a result of this pandemic.”

The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received.

“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”

Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.

For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

U.S. Attorney Erica H. MacDonald of the District of Minnesota today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov.

In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes. The NCDF Hotline can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.

“In the face of the nationwide spread of COVID-19, the U.S. Attorney’s Office for the District of Minnesota remains on-duty and committed to meeting the critical mission of protecting individuals, families and communities throughout the State of Minnesota. I also want to thank our federal, state, local, and tribal law enforcement partners for standing firm in their shared mission to protect the public,” said U.S. Attorney MacDonald.

“Unfortunately, there are wrongdoers who are actively seeking to profit from this crisis by exploiting the fears and vulnerabilities of individuals. This type of criminal behavior is abhorrent and will not go unpunished. I have designated the Chief of our Economic Crimes section to serve as the COVID-19 Fraud Coordinator for the District of Minnesota, with the primary duties of receiving all incoming reports of COVID-19 related fraud scams and oversight of any resulting prosecutions,” added MacDonald.

Some examples of these schemes include:

• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
• Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.      

In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities.  

The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.  The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald for the District of Minnesota today announced a federal criminal complaint against Muhammad Masood, 28, charging him with attempting to provide material support to a designated foreign terrorist organization. Masood, who was arrested earlier today at Minneapolis-St. Paul International Airport, made his initial appearance before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota. Masood was ordered to remain in custody pending a formal detention hearing, which is scheduled for Tuesday, March 24, 2020.

According to the allegations in the complaint, Masood, a licensed medical doctor in Pakistan, was formerly employed as a Research Coordinator for 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 made a new plan 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.

The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Timothy C. Rank, with assistance from Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section.

WASHINGTON – Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald for the District of Minnesota today announced a federal criminal complaint against MUHAMMAD MASOOD, 28, charging him with attempting to provide material support to a designated foreign terrorist organization. MASOOD, who was arrested earlier today at Minneapolis-St. Paul International Airport, made his initial appearance before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota. MASOOD was ordered to remain in custody pending a formal detention hearing, which is scheduled for Tuesday, March 24, 2020.

According to the allegations in the complaint, MASOOD, 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 made a new plan 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. Attorneys Andrew R. Winter and Timothy C. Rank, with assistance from Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section.

 

Defendant Information:

MUHAMMAD MASOOD, 28

Rochester, Minn.

Charges:

• Attempt to provide material support to a designated foreign terrorist organization (ISIS), 1 count

 

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Erica H. MacDonald today announced the sentencing of NORRIS DESHON ANDREWS, 34, to 262 months in prison for illegally possessing a firearm. ANDREWS, who was convicted by a federal jury on October 4, 2019, was sentenced earlier today before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.

As proven at trial, on May 15, 2018, police officers responded to a report of shots fired in the area of 25th and Girard Avenue North in Minneapolis. Witnesses described the shooter’s vehicle as an older model blue Chevrolet Tahoe. Officers recovered 13 discharged bullet casings from the scene. At trial, an eyewitness identified ANDREWS as the shooter.

As proven at trial, a little over an hour later, two individuals were shot and wounded in a parking lot near Plymouth Avenue North. Surveillance footage from a nearby security camera showed the shooter, who was later identified as ANDREWS, driving up to the scene in a blue Tahoe. ANDREWS and another individual got out of the vehicle and had a verbal altercation with several individuals standing on the sidewalk before ANDREWS pulled out a semi-automatic pistol and fired four shots, hitting two victims. ANDREWS then got back in the blue Tahoe and fired two more shots as he fled the scene. Hours later, officers located ANDREWS and took him into custody.

This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.

Assistant U.S. Attorneys Jeffrey S. Paulsen and Samantha H. Bates prosecuted the case.

Defendant Information:

NORRIS DESHON ANDREWS, 34

City of residence unknown

Convicted:

• Felon in possession of a firearm - armed career criminal, 1 count

Sentenced:

• 262 months in prison
• Five years of supervised release

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

 

United States Attorney Erica H. MacDonald today announced the sentencing of PHELIXIS FITZGERALD MAR ROBINSON, a/k/a “Storm,” 45, to 139 months in prison for possession with intent to distribute heroin. ROBINSON, who pleaded guilty on October 15, 2019, was sentenced yesterday before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.

According to the defendant’s guilty plea and documents filed in court, on March 27, 2019, following the execution of multiple search warrants, law enforcement seized from ROBINSON’s possession more than four kilograms of heroin and more than $545,000 in cash. ROBINSON was also found to be in possession of six loaded firearms, including a Glock model 22 .40 caliber semi-automatic pistol, a Taurus model Protector .38 caliber revolver, a Beretta model 96 .40 caliber semi-automatic pistol, a Glock model 30 .45 caliber semi-automatic pistol, a Bersa model Thunder .380 caliber semi-automatic pistol, and a SCCY model CPX-2 9mm semi-automatic pistol.

This case was the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force and the Drug Enforcement Administration. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.

Assistant United States Attorney Thomas Calhoun-Lopez prosecuted the case.

 

Defendant Information:

PHELIXIS FITZGERALD MAR ROBINSON, a/k/a “Storm,” 45

St. Paul, Minn.

Convicted:

• Possession with intent to distribute heroin, 1 count

Sentenced:

• 139 months in prison
• Five years of supervised release

 

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

The Justice Department announced today that Sterling Medical Associates Inc. (Sterling) will pay $1.85 million to resolve allegations under the False Claims Act that it failed to schedule veterans’ medical appointments timely at two outpatient clinics in Minnesota, resulting in the submission of false claims to the Department of Veterans Affairs (VA).  Sterling is a Cincinnati-based company that provides various services in the healthcare industry, including staffing, departmental operation, and outpatient clinic operation. 

“We expect companies doing business with the government to comply with their contractual obligations, particularly when they relate to the health of our veterans,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “The Department is committed to ensuring that our veterans receive the timely medical care that they need and deserve.”

VA maintains community-based outpatient clinics across the country, including clinics in Minnesota.  VA awarded Sterling a contract to operate its clinics in Hibbing and Ely, Minnesota, in March 2013.  The contract incorporated VA requirements that routine appointments be scheduled within 14 calendar days of the veteran’s requested appointment date.  Today’s settlement resolves allegations that, between July 2013 and April 2014, Sterling did not schedule patient appointments at the Hibbing clinic in compliance with these requirements and changed veterans’ requested appointment dates to make appointment wait times appear shorter. 

“Today’s settlement exhibits the importance we place on the health and welfare of our veterans,” said U.S. Attorney Erica H. MacDonald for the District of Minnesota.  “The women and men who have bravely served our country deserve to receive timely care without exception.”

“We are pleased with the settlement and the willingness of the company to recognize the importance of timely scheduling medical appointments when veterans seek the healthcare treatment they earned,” said Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General.

This matter was investigated by the U.S. Attorney’s Office for the District of Minnesota, the Civil Division’s Commercial Litigation Branch, and the Office of Inspector General of the Department of Veterans Affairs. 

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

WASHINGTON – The Justice Department announced today that Sterling Medical Associates Inc. (Sterling) will pay $1.85 million to resolve allegations under the False Claims Act that it failed to schedule veterans’ medical appointments timely at two outpatient clinics in Minnesota, resulting in the submission of false claims to the Department of Veterans Affairs (VA). Sterling is a Cincinnati-based company that provides various services in the healthcare industry, including staffing, departmental operation, and outpatient clinic operation. 

“We expect companies doing business with the government to comply with their contractual obligations, particularly when they relate to the health of our veterans,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department is committed to ensuring that our veterans receive the timely medical care that they need and deserve.”

VA maintains community-based outpatient clinics across the country, including clinics in Minnesota. VA awarded Sterling a contract to operate its clinics in Hibbing and Ely, Minnesota, in March 2013. The contract incorporated VA requirements that routine appointments be scheduled within 14 calendar days of the veteran’s requested appointment date. Today’s settlement resolves allegations that, between July 2013 and April 2014, Sterling did not schedule patient appointments at the Hibbing clinic in compliance with these requirements and changed veterans’ requested appointment dates to make appointment wait times appear shorter. 

“Today’s settlement exhibits the importance we place on the health and welfare of our veterans,” said United States Attorney Erica H. MacDonald. “The women and men who have bravely served our country deserve to receive timely care without exception.”

“We are pleased with the settlement and the willingness of the company to recognize the importance of timely scheduling medical appointments when veterans seek the healthcare treatment they earned,” said Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General.

This matter was investigated by the U.S. Attorney’s Office for the District of Minnesota, the Civil Division’s Commercial Litigation Branch, and the Office of Inspector General of the Department of Veterans Affairs. 

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

United States Attorney Erica H. MacDonald today announced a federal criminal complaint charging JEFFREY COLIN PURDY, 28, with making threatening communications. PURDY made his initial appearance yesterday before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota. PURDY was ordered to remain in custody pending a formal detention hearing, which is scheduled for Monday, March 9, 2020.

According to the allegations in the complaint, on September 15, 2017, the Mankato Department of Public Safety received a complaint from an individual stating that she had been receiving harassing emails from PURDY, a former classmate from Minnesota State University, Mankato (“Mankato State”). While attending Mankato State, the victim declined repeated romantic advances from PURDY and eventually blocked PURDY from her cellular telephone and social media accounts. From August 30, 2017, through February 21, 2020, PURDY used Mankato State’s Silent Witness Report, an anonymous incident reporting tool, to make frequent, violent threats against the victim. An IP address used to make one of the Silent Witness Reports was traced back to PURDY. On February 29, 2020, during an interview at the Mankato Department of Public Safety, PURDY admitted to sending all the Silent Witness Reports.

This case is the result of an investigation conducted by the FBI and the Mankato Department of Public Safety, with assistance from the Blue Earth County Attorney’s Office.

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

 

Defendant Information:

JEFFREY COLIN PURDY, 28

Minneapolis, Minn.

Charges:

• Threatening communications, 1 count

 

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The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Erica H. MacDonald today announced a federal indictment charging KENNETH RAY MILLER, 58, with illegal manufacturing, dealing, transporting, and possession of explosives and illegal possession of firearms. MILLER made his initial appearance earlier today before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.

According to the allegations in the indictment, from 2013 through June 25, 2019, MILLER knowingly engaged in the business of importing, manufacturing, dealing, and transporting explosive materials, including smoke generating devices containing electric igniters (also known as electric matches) and a chlorate explosive mixture. MILLER was also in possession of three firearms, including a Smith & Wesson Model 19-6 revolver, a Winchester Model 1200, 12-gauge shotgun, and a Norinco SKS Sporter rifle. Because MILLER has prior felony convictions, he is prohibited from possessing explosives or firearms.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Houston County Sheriff’s Office, the St. Paul Police Department, the U.S. Environmental Protection Agency, the Minnesota Department of Natural Resources, and the Minnesota Department of Public Safety (State Fire Marshal).

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

 

Defendant Information:

KENNETH RAY MILLER, 58

Brownsville, Minn.

Charges:

• Manufacturing and dealing explosive materials, 1 count
• Transporting explosive materials, 1 count
• Felon in possession of explosives, 1 count
• Felon in possession of firearms, 1 count

 

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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Erica H. MacDonald today announced the sentencing of STEVEN ALLEN LINDQUIST, 30, to 204 months in prison for conspiring to distribute methamphetamine. LINDQUIST, who pleaded guilty on October 31, 2019, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. On February 18, 2020, LINDQUIST’s co-defendant, TIFFANY MARIE GAUTHIER, 24, was sentenced to 60 months in prison for conspiring to distribute methamphetamine.

According to the defendants’ guilty pleas and documents filed in court, on April 2, 2019, LINDQUIST was stopped by law enforcement for driving without a license. LINDQUIST was arrested with $10,000 in cash and approximately 6.5 grams of methamphetamine in his pocket. Law enforcement conducted a search of LINDQUIST’s vehicle and found another $7,920 in cash, approximately 13 grams of methamphetamine, hydrocodone, oxycodone, alprazolam, clonazepam, MDMA, and marijuana, which are all controlled substances under federal law.

According to the defendants’ guilty pleas and documents filed in court, between late April and early May 2019, law enforcement tracked a vehicle that was rented and driven by GAUTHIER from Arizona to Minnesota. On May 2, 2019, law enforcement obtained a search warrant for the vehicle and seized approximately 55 pounds of methamphetamine that was concealed in the fuel tank. GAUTHIER had assisted LINDQUIST in obtaining the drugs from a supplier in Arizona, and then intended to deliver the drug-laden vehicle to LINDQUIST who, in turn, intended to distribute the methamphetamine to customers throughout Minnesota. On May 29, 2019, law enforcement received a tip that LINDQUIST was selling drugs at the Black Bear Casino in Carlton County, Minnesota. Law enforcement conducted a search of the defendant's vehicle and seized approximately 615 grams of methamphetamine from a backpack which also contained mail addressed to LINDQUIST.

This case was the result of an investigation conducted by the DEA, the Goodhue County Sheriff’s Office, the Olmsted County Sheriff’s Office, and other members of the Southeast Minnesota Violent Crime Enforcement Team (VCET).

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

Defendant Information:

STEVEN ALLEN LINDQUIST, 30

Rochester, Minn.

Convicted:

• Conspiracy to distribute methamphetamine, 1 count

 

Sentenced:

• 204 months in prison
• 5 years of supervised release

 

TIFFANY MARIE GAUTHIER, 24

Rochester, Minn.

Convicted:

• Conspiracy to distribute methamphetamine, 1 count

 

Sentenced:

• 60 months in prison
• Two years of supervised release

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United States Attorney Erica H. MacDonald joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history.  This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep.  In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors.  In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.

Attorney General Barr made the announcement at an event in Florida entitled “Keeping Seniors Safe,” which outlined his vision for protecting older Americans from financial harm.  The event focused special attention on the threat posed by foreign-based fraud schemes that victimize seniors in large numbers.  During the event, the Attorney General declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.

“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr.  “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”

“The charges announced today demonstrate the great success of the Transnational Elder Fraud Strike Force to identify and stop those who are targeting our senior communities from overseas,” said FBI Director Christopher Wray. “We’re committed to continuing our efforts to keep our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online.” 

“Every day, American consumers, particularly older Americans, receive offers that sound just too good to be true,” said Chief Postal Inspector Gary Barksdale.  “Some come through the mail; others by telephone or the Internet.  These offers have one objective – to rob you of your hard-earned money.  Fraud costs Americans millions of dollars each year.  The good news is most frauds can be prevented.  It’s one of the few crimes in which potential victims can just say “No!”  So hold on to your money and report scams to Postal Inspectors.”

“Aggressive phone-based marketing scams, phony investment opportunities, imposter schemes – every day, across the nation, seniors are being bombarded by these types of attacks,” said United States Attorney Erica H. MacDonald. “We are honing our resources and leveraging our law enforcement partnerships to root out these fraudsters who are preying upon vulnerable older Americans.”

This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement. 

Elder Fraud Hotline

Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud.  The Hotline will be staffed by experienced case managers who can provide personalized support to callers.  Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller.  The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).

For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.

In addition to announcing the sweep cases, Attorney General Barr and others at the Keeping Seniors Safe event also thanked department personnel — especially the Elder Justice Coordinators appointed in each U.S. Attorney’s Office — for conducting dozens of outreach events across the nation to warn seniors of fraud schemes and to engage with industry representatives and state and local authorities on fraud-prevention measures.  These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.

The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

United States Attorney Erica H. MacDonald today announced the sentencing of HURIAH KAREEM BLEDSOE, 40, to 120 months in prison for illegally possessing five firearms and quantities of marijuana, methamphetamine, cocaine, and heroin. BLEDSOE, who pleaded guilty on October 15, 2019, was sentenced today before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.

United States Attorney Erica H. MacDonald said, “Mr. Bledsoe, a convicted felon with an extremely violent criminal history, was in possession of multiple firearms, hundreds of rounds of ammunition, and a variety of dangerous drugs – all in the presence of young children. His actions showed no regard for the safety of those children or the broader community.”

According to the defendant’s guilty plea and documents filed in court, on January 2, 2019, and January 6, 2019, law enforcement received complaints from two separate callers stating that BLEDSOE was staying at the Extended Stay Hotel in Brooklyn Center, Minnesota, and he had guns in the hotel room. The callers also stated that there were minors in the hotel room.

According to the defendant’s guilty plea and documents filed in court, law enforcement obtained search warrants for BLEDSOE’s hotel room and on January 17, 2019, law enforcement executed the warrants and seized five firearms, namely, a North American Arms, model NAA-.22LR, .22LR caliber revolver, a Stoeger, model M3500, 12-gauge short-barreled shotgun, a Ruger, model SR40, .40 caliber semi-automatic handgun, an Imperial Metal Products, model 8, .22 caliber revolver, and a Ceska Zbrojsvka, model 50, 7.65 caliber semi-automatic handgun. Law enforcement also seized hundreds of rounds of ammunition, several high-capacity gun magazines, body armor, a digital scale, $2,320 in cash, and quantities of marijuana, methamphetamine, cocaine, and heroin.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brooklyn Center Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.

Assistant United States Attorneys Emily A. Polachek and Thomas M. Hollenhorst prosecuted the case.

 

Defendant Information:

HURIAH KAREEM BLEDSOE, 40

Brooklyn Center, Minn.

Convicted:

• Possession with the intent to distribute controlled substances, 1 count
• Felon in possession of firearms, 1 count

Sentenced:

• 120 months in prison
• Three years of supervised release

 

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United States Attorney Erica H. MacDonald today announced the guilty plea of DELFONZO DENELL WALLACE, 30, to eight counts of interference with commerce by robbery, known as the Hobbs Act. The Hobbs Act prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.” WALLACE, who was charged by an Information on February 20, 2020, entered his guilty plea today before Senior U.S. District Judge Ann Montgomery in U.S. District Court in Minneapolis, Minnesota.

According to the defendant’s guilty plea and documents filed in court, between June 14, 2019, and October 10, 2019, WALLACE, while armed with a dangerous weapon, robbed, in violation of the Hobbs Act, eight separate Twin Cities businesses that were engaged in interstate commerce, including Starbucks, Speedway, Wendy’s, Shuang Hur Supermarket, McDonald’s, and Spitz restaurant. During the robberies, WALLACE used actual and threatened force, violence, and fear of injury against victim employees to steal over $15,000 cash belonging to the businesses and employees. As part of the defendant’s guilty plea and documents filed in court, WALLACE agreed, under the Mandatory Victim Restitution Act, to make restitution to these businesses, as well as to three other business that were robbed between April and September 2019.

This case is the result of an investigation conducted by the Federal Bureau of Investigation (FBI), the Minneapolis Police Department, the St. Paul Police Department, and other local police departments.

Assistant United States Attorney Benjamin Bejar is prosecuting the case.

 

Defendant Information:

DELFONZO DENELL WALLACE, 30

West St. Paul, Minn.

Convicted:

• Interference with commerce by robbery (Hobbs Act), 8 counts

 

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United States Attorney Erica H. MacDonald today announced the guilty plea of AISHIA RENEE BELL, 49, to one count of conspiracy to commit wire fraud. BELL, who was charged by felony information on January 29, 2020, entered her guilty plea today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. A total of 12 defendants have pleaded guilty for their roles in the conspiracy. 

According to the defendant’s guilty plea and documents filed in court, from November 2014 through February 2019, BELL, a former employee of a Twin Cities non-profit organization that provides housing and related services to the homeless, devised and participated in a scheme to defraud the organization of charitable funds intended to help the homeless. As part of the scheme, BELL recruited an individual to pose as a vendor providing services to fictitious homeless clients, and then directed the individual to submit to the organization fraudulent IRS Forms W-9, lease agreements, and check requests that falsely claimed to provide housing to homeless clients. BELL and a co-conspirator submitted the fraudulent check requests and supporting documentation to the organization’s accounts payable department in order to facilitate the issuance of checks. Between November 2014 and June 2017, BELL caused the transmission of approximately 69 fraudulent check requests from the organization to its bank for checks totaling approximately $166,785.

During the course of the investigation, BELL attempted to conceal the full scope of the conspiracy by making false statements to law enforcement and by attempting to dissuade a co-conspirator from cooperating with law enforcement.

This case is the result of an investigation conducted by the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), the Federal Bureau of Investigation (FBI), and the United States Postal Inspection Service (USPIS).

Assistant United States Attorney Miranda E. Dugi is prosecuting the case.

Defendant Information:

AISHIA RENEE BELL, 49

Minneapolis, Minn.

Convicted:

• Conspiracy to commit wire fraud, 1 count

 

 

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United States Attorney Erica H. MacDonald today announced the sentencing of five individuals connected with the 10z/20z south Minneapolis street gangs. ALKWAN KWAME LAWSON-HOLIDAY, 30, LE’KEITH ALI DU’JUAN RAYFORD, 28, KENNETH LAMONT THOMPSON, 34, MAURICE JERRY JOHNSON, 29, and LENARDO ALEXZANDER WOODARD, 32, were convicted and sentenced for crimes related to violent gang activity, including trafficking crack cocaine and illegal possession of firearms. The sentencing proceedings were held before Judge Joan N. Ericksen in United States District Court in Minneapolis, Minnesota.

United States Attorney Erica H. MacDonald stated, “Violent groups who use guns to carry out their drug trafficking operations bring death and destruction to our communities. This type of criminal activity is unacceptable and will not be tolerated. All five of these individuals have faced justice and must account for the serious crimes they have committed.”

According to the defendants’ guilty pleas and documents filed in court, the defendants maintained active membership in or association with the 10z/20z south Minneapolis street gangs, with the purpose of making money for the gang through criminal acts, including distribution of crack cocaine, heroin, and marijuana. As part of their drug distribution schemes, members of the gangs possessed, carried and used firearms in order to protect their drug distribution network from rival gangs, and to protect drug distributors from being robbed of narcotics or money.

According to the defendants’ guilty pleas and documents filed in court, RAYFORD, THOMPSON, JOHNSON, and WOODARD were involved in a conspiracy to possess firearms in furtherance of their drug trafficking crimes. Their criminal activities included, among other things, multiple crack cocaine and heroin sales, as well as repeated possession of illegal firearms.

This case was the result of an investigation conducted by the FBI Safe Streets Task Force, which is comprised of federal and local law enforcement agencies, including, but not limited to, the FBI, the Minneapolis Police Department, the Minnesota Bureau of Criminal Apprehension, and the St. Paul Police Department. The Minnesota Department of Corrections also provided assistance in this case. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.

Assistant U.S. Attorney Thomas Calhoun-Lopez prosecuted the case.

 

Defendant Information:

ALKWAN KWAME LAWSON-HOLIDAY, a/k/a “Lucky,” a/k/a “Kweezy,” 30

Brooklyn Park, Minn.

Convicted:

• Distributing a controlled substance, 1 count

Sentenced:

• 57 months in prison
• Three years of supervised release

 

LE’KEITH ALI DU’JUAN RAYFORD, a/k/a “Fatty,” 28

Minneapolis, Minn.

Convicted:

• Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count

Sentenced:

• 78 months in prison
• Three years of supervised release

 

KENNETH LAMONT THOMPSON, a/k/a “Kenny OG,” a/k/a “KG,” 34

Minneapolis, Minn.

Convicted:

• Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count

Sentenced:

• 100 months in prison
• Three years of supervised release

 

MAURICE JERRY JOHNSON, a/k/a “Reese,” a/k/a “Loco,” 29

Minneapolis, Minn.

Convicted:

• Use of a firearm during and in relation to a drug trafficking crime, 1 count

Sentenced:

• 60 months in prison
• Three years of supervised release

 

LENARDO ALEXZANDER WOODARD, a/k/a “Naughty,” 32

Brooklyn Park, Minn.

Convicted:

• Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count

Sentenced:

• 51 months in prison
• Three years of supervised release

 

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United States Attorney Erica H. MacDonald today announced the guilty pleas of MICHAEL JACOB BLANDFORD, 28, and MATTHEW JON LEIGLAND, 26, to one count each of possession with intent to distribute methamphetamine. BLANDFORD and LEIGLAND, who were initially charged on April 26, 2019, entered their guilty pleas before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.

According to the defendants’ guilty pleas and documents filed with the court, BLANDFORD and LEIGLAND admitted to traveling from the White Earth Indian Reservation to the Twin Cities to purchase methamphetamine from a source and bring it back to the Reservation to distribute. On March 18, 2019, in Motley, Minnesota, a Minnesota State Trooper conducted a traffic stop of a vehicle for speeding and for having loud exhaust. BLANDFORD was identified as the driver and LEIGLAND was identified as the lone passenger. During the stop, the State Trooper observed drug paraphernalia and BLANDFORD showed signs of recent drug use. When asked to step out of the vehicle, BLANDFORD fled on foot and tossed an item out of his pocket, which was later found to be approximately 10 grams of methamphetamine. The State Trooper apprehended BLANDFORD and placed him in custody. A subsequent search of the vehicle revealed a methamphetamine smoking device, used razor blades, a small digital scale, two measuring cups, and a gallon Ziploc bag containing approximately 480 grams of methamphetamine.

This case was the result of an investigation conducted by the West Central Minnesota Drug & Violent Crimes Task Force, the Becker County Sheriff’s Office, the Minnesota State Patrol, the Motley Police Department, and the FBI Headwaters Safe Trails Task Force.

Special Assistant U.S. Attorney Gina L. Allery prosecuted the case.

 

Defendant Information:

MICHAEL JACOB BLANDFORD, 28

Monticello, Minn.

Convicted:

• Possession with intent to distribute methamphetamine, 1 count

 

MATTHEW JON LEIGLAND, 26

Ponsford, Minn.

Convicted:

• Possession with intent to distribute methamphetamine, 1 count

 

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United States Attorney Erica H. MacDonald today announced the sentencing of GARY JAMES DOKULIL, 40, to 160 months in prison for distribution of child pornography and making false statements in an application for a passport. DOKULIL, who pleaded guilty on September 13, 2019, was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.

According to the defendant’s guilty plea and documents filed in court, between December 2008 and November 2018, DOKULIL admitted to using file-sharing software to search for, acquire, and distribute images and videos depicting child sexual abuse. DOKULIL also admitted to traveling to the Philippines on multiple occasions and, while there in 2016, purchased several DVDs containing child pornography.

According to the defendant’s guilty plea and documents filed in court, in November 2018, law enforcement executed a search warrant at DOKULIL’s residence and seized several items, including electronics, electronic media, various travel documents, and DOKULIL’s passport. Law enforcement informed DOKULIL that he could not report his passport lost or stolen in order to obtain a new one because the location of his passport (i.e., in the custody of the FBI) was known to DOKULIL. Despite the warning, DOKULIL submitted an application to the State Department for a replacement passport and, under penalty of perjury, falsely reported that his passport was “lost” or “missing.” After fraudulently obtaining a replacement passport, DOKULIL traveled to the Philippines. On February 26, 2019, DOKULIL was located and arrested in the Philippines and was later deported to the United States.

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

Assistant U.S. Attorney Angela M. Munoz and former Assistant U.S. Attorney Carol M. Kayser prosecuted the case.

 

Defendant Information:

GARY JAMES DOKULIL, 40

Maplewood, Minn.

Convicted:

• Distribution of child pornography, 1 count
• False statement in application for passport, 1 count

Sentenced:

• 160 months in prison
• 15 years of supervised release

 

 

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United States Attorney Erica H. MacDonald today announced the sentencing of JARED ROSS BOSWELL, 33, to 145 months in prison for distributing child pornography. BOSWELL, who pleaded guilty on August 15, 2019, was sentenced today before Judge Donovan W. Frank in U.S. District Court in Bemidji, Minnesota.

According to the defendant’s guilty plea, from April 2018 through September 2018, BOSWELL used the internet to send obscene materials and distribute sexually explicit images. Specifically, on September 7, 2018, BOSWELL sent an image depicting child sexual abuse to a minor, who he knew to be 10 years old.

This case is the result of an investigation conducted by the Red Lake Department of Public Safety, the Mille Lacs Tribal Police Department, the Bemidji Police Department, the Hubbard County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the FBI.

This case was prosecuted by Assistant U.S. Attorney Angela Munoz.

 

Defendant Information:

JARED ROSS BOSWELL, 33

Cass County, Minn.

Convicted:

• Distribution of child pornography, 1 count

Sentenced:

• 145 months in prison
• 15 years of supervised release

 

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United States Attorney Erica H. MacDonald today announced the sentencing of MICHAEL MATTHEWS, 58, to 180 months in prison for illegally possessing a firearm. MATTHEWS, who was charged on January 4, 2019, was sentenced yesterday before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.

According to the defendant’s guilty plea and documents filed in court, on January 3, 2019, officers from the Hennepin County Sheriff’s Office Violent Offender Task Force (“VOTF”) observed MATTHEWS place an object into the trunk of a Cadillac sedan that was parked in front of his residence before getting into the vehicle and driving away. Officers conducted a traffic stop and recovered 7.6 grams of cocaine from his person and a loaded Glock, model 26, 9 mm handgun from the trunk. Because he has prior felony convictions in Hennepin County, MATTHEWS is prohibited under federal law from possessing firearms at any time.

This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hennepin County Sheriff’s Office Violent Offender Task Force. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.

Assistant U.S. Attorneys Samantha H. Bates and Amber M. Brennan prosecuted the case.

Defendant Information:

MICHAEL MATTHEWS, 58

Minneapolis, Minn.

Convicted:

• Felon in possession of a firearm - armed career criminal, 1 count

Sentenced:

• 180 months in prison
• Five years of supervised release

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United States Attorney Erica H. MacDonald today announced a federal indictment charging YURIDIA HERNANDEZ LINARES, 36, with conspiracy to commit visa fraud. LINARES made her initial appearance earlier today before Magistrate Judge Tony N. Leung in U.S. District Court in Minneapolis, Minnesota.

According to the allegations in the indictment, between August 20, 2019, and September 30, 2019, LINARES conspired with other individuals to defraud the United States by making false statements to fraudulently obtain U Nonimmigrant Visas (“U-Visas”), for four individuals. Victims of certain criminal activities that occur in the United States may be eligible to apply for and obtain a U Visa. A victim who obtains a U Visa may subsequently apply to U.S. Citizenship and Immigration Services (USCIS) to adjust their status to become a lawful permanent resident of the United States.

According to the allegations in the indictment, LINARES devised and participated in a detailed scheme, whereby the four individuals each falsely reported to the Eden Prairie Police Department that they were victims of robberies committed in Eden Prairie, Minnesota. LINARES directed the individuals to file a police report stating that they were a victim of a fabricated assault, and to corroborate each other’s account of the assault. LINARES used a box cutter or other sharp object to cut the four individuals before they filed their false report with the Eden Prairie Police Department.  In exchange, LINARES collected a $2,000 fee from each individual.

This case is the result of an investigation conducted by Homeland Security Investigations and the Eden Prairie Police Department.

Assistant U.S. Attorney Angela M. Munoz is prosecuting the case.

 

Defendant Information:

YURIDIA HERNANDEZ LINARES, 36

City of residence unknown

Charges:

• Conspiracy to commit visa fraud, 1 count

 

 

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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

United States Attorney Erica H. MacDonald today announced the sentencing of RYAN THOMAS FEINE, 35, to 456 months in prison for production and attempted production of child pornography, followed by 20 years of supervised release. FEINE, who pleaded guilty on October 7, 2019, was sentenced today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. During the sentencing hearing, Judge Tunheim described FEINE’s criminal conduct as “certainly horrendous,” and further noted that the case was, “among the worst I’ve ever seen.”

“This is one of the most egregious cases of child sexual abuse my office has prosecuted,” said U.S. Attorney Erica MacDonald. “We will never shy away from difficult cases such as this, we are committed to pursuing justice for innocent children.”

According to the defendant’s guilty plea and documents filed in court, between February 10, 2013, and September 10, 2013, FEINE created multiple video recordings of his sexual abuse of Minor A, who was less than one year old at the time. During the same time period, FEINE also produced sexually explicit images of Minor B, who was approximately five years old at the time. FEINE came to the attention of law enforcement in August 2018, based on an allegation of ongoing sexual abuse.

According to the defendant’s guilty plea and documents filed in court, in August 2018, law enforcement executed a search warrant on several of FEINE’s electronic devices, which revealed more than 1,000 images and 150 videos of child pornography. The National Center for Missing or Exploited Children subsequently identified the defendant as the creator of a multi-part child pornography series that has been distributed across the country.

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.

If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.

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

Assistant U.S. Attorneys Jordan L. Sing and Melinda A. Williams prosecuted the case.

 

Defendant Information:

RYAN THOMAS FEINE, 35

Winona, Minn.

Convicted:

• Production and attempted production of child pornography, 2 counts

Sentenced:

• 456 months in prison
• 20 years of supervised release
• Restitution payable to each minor victim

 

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United States Attorney Erica H. MacDonald today announced the guilty plea of WILLIAM KYLE SUTOR III, 37, to conspiracy to commit health care fraud. SUTOR, who was charged by felony Information on December 30, 2019, entered his plea today before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota. SUTOR will be sentenced at a later date.

United States Attorney Erica H. MacDonald stated, “This defendant, a personal injury attorney, participated in an all too common healthcare fraud scheme involving a network of chiropractors and runners. The #1 goal of the scheme was to steal money from insurance providers, resulting in higher premiums for Minnesota consumers. This is unacceptable. I applaud the diligent investigators and prosecutor who continue to pursue these cases.”

“The conduct perpetrated by Mr. Sutor makes it harder for the legitimate lawyers and health care providers to help Minnesotans who really are injured,” said Minnesota Department of Commerce Commissioner Steve Kelley. “The agents at the Minnesota Commerce Fraud Bureau will continue to investigate individuals who think they are above the law.”

“As demand for health benefits goes up, so do the losses from health care fraud like this,” said FBI Minneapolis Special Agent in Charge, Jill Sanborn. “Our special agents in partnership with Minnesota Commerce Fraud Bureau used every tool we have to dissect this scheme and stop this defendant before he could do more damage,” Sanborn said.

According to the defendant’s guilty plea and documents filed in court, between 2015 and 2016, SUTOR, a licensed personal injury attorney, engaged in a scheme to defraud providers of automobile insurance policies. SUTOR began working with chiropractors and patient recruiters, referred to as “runners.” As part of the scheme, the chiropractor would pay the runner a fee, typically between $1,000 and $1,500, for every individual that the runner brought to the chiropractor’s clinic to become a patient. In addition, SUTOR would pay the runner a fee, typically $300, for every individual that became a client of SUTOR’s. SUTOR, the chiropractors, and the runners took steps to conceal their scheme, including making kickback payments in cash or by checks written out to appear that they were payments for legitimate legal services.

This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the FBI.

Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.

 

Defendant Information:

WILLIAM KYLE SUTOR III, 37

Minnetonka, Minn.

Convicted:

• Conspiracy to commit health care fraud, 1 count

 

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United States Attorney Erica H. MacDonald today announced the guilty plea of OLGA MARINA FRANCO DEL-CID, 36, to one count of illegal re-entry after removal and one count of false representation of social security account number. FRANCO DEL-CID, who was charged on December 12, 2019, entered her guilty plea earlier today before Judge Susan Richard Nelson in U.S. District Court, in St. Paul, Minnesota. A sentencing date has been set for June 11, 2020.

According to the defendant’s guilty plea and documents filed in court, FRANCO DEL-CID was previously removed from the United States on May 4, 2016, following a felony conviction on August 8, 2008, in Lyon County, for criminal vehicular homicide. On November 26, 2019, FRANCO DEL-CID was found in the United States in violation of the previous removal. FRANCO DEL-CID also admitted to falsely representing a social security number on an Employment Eligibility Verification Form I-9.    

This case is the result of an investigation conducted by U.S. Immigration and Customs Enforcement. 

Assistant U.S. Attorney Laura M. Provinzino is prosecuting the case.

 

Defendant Information:

OLGA MARINA FRANCO DEL-CID, 36

Inver Grove Heights, Minn.

Charges:

• Illegal re-entry after removal, 1 count
• False representation of social security account number, 1 count

 

 

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United States Attorney Erica H. MacDonald today announced a federal indictment charging DARNELL DESHAWN STENNIS, 28, with one count of sex trafficking by force, fraud, and coercion, and two counts of transporting individuals to engage in prostitution. STENNIS is scheduled to be arraigned on these charges on February 6, 2020, before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.

According to the allegations in the indictment and documents filed in court, from January 2019 through March 2019, STENNIS recruited, harbored, advertised, solicited, and transported from Minnesota to North Dakota, a victim to engage in commercial sex acts by means of force, fraud, and coercion. From March 21, 2019, through March 25, 2019, STENNIS also transported a second victim from Minnesota to North Dakota with the intent that the victim would engage in commercial sex acts.

According to the allegations in the indictment and documents filed in court, on March 25, 2019, officers with the Bloomington Police Department were dispatched to the La Quinta Inn in Bloomington, Minnesota, following a report that a hotel guest heard yelling and what sounded like someone being thrown against a wall. Upon arrival, officers encountered STENNIS and two other individuals, identified as Victim A and Victim B. Officers checked the hotel room and observed obvious signs of a disturbance, including a toilet seat that was broken into multiple pieces and a towel rack that was bent. Victim A reported to officers that STENNIS had violently assaulted her. Victim A reported that STENNIS choked her, bashed her head into the towel rack, and pushed her down onto the toilet seat. STENNIS, who also had outstanding warrants, was arrested and placed into custody.

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

Assistant U.S. Attorney Evan B. Gilead and Manda M. Sertich are prosecuting the case.

 

Defendant Information:

DARNELL DESHAWN STENNIS, 28

Charges:

• Sex trafficking by force, fraud, and coercion, 1 count
• Transporting individuals to engage in prostitution, 2 counts

 

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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

“At midnight on February 6, the Drug Enforcement Administration’s temporary emergency prohibition of fentanyl analogues will expire, unless Congress acts to extend it. Fentanyl and its analogues are highly potent and extremely lethal. Fentanyl, which is 50 times more potent than heroin and 100 times more potent than morphine, poses a significant threat to public safety, even a very small quantity can cause a fatal overdose. The DEA’s temporary emergency prohibition has served as a critical tool for law enforcement, allowing us to more effectively combat the illegal trafficking of these deadly substances, but it is only temporary. If the temporary emergency prohibition expires on February 6, the criminals trafficking in fentanyl analogues will operate with impunity and the lives of Minnesotans will be put at risk. My job as United States Attorney for the District of Minnesota is to keep individuals, families and communities safe; therefore, I implore Congress to act now and pass permanent legislation. American lives depend on it.”

 

Background:  In an effort to combat this deadly drug epidemic, DEA issued a temporary emergency two-year order in February 2018 that made all fentanyl-related substances illegal. Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States. However, DEA’s emergency authority expires at midnight on February 6, 2020, unless Congress acts to extend it.

 

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United States Attorney Erica H. MacDonald today announced the sentencing of RANDAL SCOT BRINKMAN, 61, to 46 months in prison. BRINKMAN, who was found guilty on July 25, 2019, following a four-day jury trial, was sentenced today by Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.

As proven at trial, BRINKMAN owned and operated a Roseville-based construction company. From 1999 through 2018, BRINKMAN took steps to hide his income and to actively evade the assessment of taxes, including using sham businesses, closing his personal bank accounts, using money orders and cash to pay for daily expenses, and creating a fake religious organization in order to hide his income and assets. Following a 2007 IRS audit, BRINKMAN filed personal income tax returns for the calendar years 2002 through 2007, admitting that he owed more than $145,000 in federal income taxes for those years. Nevertheless, despite filing the returns, BRINKMAN didn’t pay any of the taxes he admitted he owed to the IRS. BRINKMAN also failed to file tax returns or pay any of his federal incomes taxes from 2012 through 2018.

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Revenue.

This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Alexander D. Chiquione.

Defendant Information:

RANDAL SCOT BRINKMAN, 61

Medina, Minn.

Convicted:

• Tax evasion, 6 counts

Sentenced:

• 46 months in prison
• 3 years supervised release

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United States Attorney Erica H. MacDonald today announced the guilty plea of EDWARD LEE BELLANGER, 45, to three counts of assault of an intimate or dating partner. BELLANGER, who was initially charged on June 27, 2019, entered his plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. BELLANGER is scheduled to be sentenced on May 26, 2020.

According to the defendant’s guilty plea and documents filed in court, between October 2018 and January 2019, BELLANGER violently assaulted the victim on three separate occasions. During one of the assaults, BELLANGER, who was driving his car, reached over to the victim, who was seated in the front passenger seat, and slammed her head into the windshield, cracking the windshield. Following the assaults, the victim sought medical attention and was treated for substantial bodily injuries.

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

Special Assistant U.S. Attorney Gina L. Allery is prosecuting the case.

 

Defendant Information:

EDWARD LEE BELLANGER, 45

Red Lake, Minn.

Convicted:

• Assault resulting in substantial bodily injury to an intimate or dating partner, 3 counts

 

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During a ceremony today in Washington, D.C., United States Attorney Erica H. MacDonald was appointed by Attorney General William P. Barr to the Presidential Commission on Law Enforcement and the Administration of Justice. On October 28, 2019, President Donald J. Trump signed Executive Order No. 13896, authorizing and designating the Attorney General to create such a Commission that would explore modern issues affecting law enforcement that most impact the ability of American policing to reduce crime. The launch of the Commission was announced at today’s ceremony as well.

“There is no more noble and important profession than law enforcement. A free and safe society requires a trusted and capable police force to safeguard our rights to life and liberty,” said Attorney General William P. Barr. “But as criminal threats and social conditions have changed the responsibilities and roles of police officers, there is a need for a modern study of how law enforcement can best protect and serve American communities. This is why the President instructed me to establish this critical Commission, whose members truly reflect the best there is in law enforcement. Together, we will examine, discuss, and debate how justice is administered in the United States and uncover opportunities for progress, improvement, and innovation.”

United States Attorney Erica H. MacDonald said, “I am honored to serve on this Commission alongside a group of incredible leaders who are dedicated to service and public safety. I undertake this responsibility fully cognizant that the Commission’s recommendations will impact our communities, law enforcement professionals and many components of the criminal justice system for decades into the future. My highest priority as United States Attorney for the District of Minnesota is keeping individuals, families and communities safe, which is the same priority I bring to this Commission.”

The Executive Order instructs the Commission to conduct its study by focusing on the law enforcement officers who are tasked with reducing crime on a daily basis. It also directs the Commission to research “important current issues facing law enforcement and the criminal justice system,” and recommends a variety of subjects for study, such as, but not limited to:

• The challenges to law enforcement associated with mental illness, homelessness, substance abuse, and other social factors that influence crime and strain criminal justice resources;
• The recruitment, hiring, training, and retention of law enforcement officers, including in rural and tribal communities;
• Refusals by State and local prosecutors to enforce laws or prosecute categories of crimes;
• The need to promote public confidence and respect for the law and law enforcement officers; and
• The effects of technological innovations on law enforcement and the criminal justice system, including the challenges and opportunities presented by such innovations.

The Commission will principally conduct its study through a series of hearings, panel presentations, field visits, and other public meetings. At these events, the Commission will hear from subject matter experts, public officials, private citizens, and other relevant stakeholders and institutions who can provide valuable insight into these issues.

The Commissioners, appointed by the Attorney General and announced today, are urban police chiefs, state prosecutors, county sheriffs, members of rural and tribal law enforcement, federal agents, a U.S. Attorney, and a state attorney general. In addition to their diverse experiences and backgrounds, each member brings to the Commission an expertise in formulating and shaping law enforcement policy and leading police departments and law enforcement organizations.

The Commission will meet monthly for the next year and then report its findings to the Attorney General, who will submit a final report to the President.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

 

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United States Attorney Erica H. MacDonald today announced the sentencing of DILLON GEORGE TAYLOR, 21, to 52 months in prison for assaulting three individuals with a firearm and violating his supervised release conditions. TAYLOR, who pleaded guilty on October 22, 2019, was sentenced today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.

According to the defendant’s guilty plea and documents filed in court, on November 22, 2018, during a confrontation with two individuals, TAYLOR pointed a firearm at one of the individuals and threatened his life. When the two individuals left the scene in a vehicle driven by a third individual, TAYLOR pursued them and shot at the vehicle multiple times. When the vehicle pulled into the parking lot of a casino located on the Red Lake Indian Reservation, TAYLOR continued his pursuit, firing a shot towards the entrance of the casino where the three individuals and casino personnel were standing.

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 United States Attorney Alexander D. Chiquoine prosecuted the case.

Defendant Information:

 

DILLON GEORGE TAYLOR, 21

Red Lake, Minn.

Convicted:

• Assault with a dangerous weapon, 1 count

Sentenced:

• 52 months in prison
• Three years of supervised release

 

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United States Attorney Erica H. MacDonald today announced the sentencing of DOUGLAS RAY THOMAS, 49, to 51 months in prison for perpetrating a fraud scheme against a Duluth-based trucking company. THOMAS, who pleaded guilty to one count of wire fraud and one count of failing to account for and pay over employment taxes on May 17, 2019, was sentenced on January 17, 2020, before Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.

According to the defendant’s guilty plea and documents filed in court, from September 2013 through June 2014, THOMAS devised and executed a fraud scheme to gain control over the assets and revenue of Northwoods Trucking, Inc., a transportation company located in Duluth, Minnesota. On October 18, 2013, THOMAS and the former owners of Northwoods Trucking entered into a stock purchase agreement in which THOMAS agreed to purchase all outstanding shares of the company for $730,000. As part of the agreement, THOMAS agreed to make an initial payment within five days of closing. Despite failing to make the initial payment, as well as subsequent payments pursuant to the purchase agreement, THOMAS assumed control of the company in December of 2013 and, shortly thereafter, began transferring Northwoods Trucking’s business revenue into a bank account that THOMAS alone controlled. 

According to the defendant’s guilty plea and documents filed in court, while he owned and operated the company, THOMAS repeatedly failed to pay many of the company’s liabilities, including fuel and insurance for the company’s trucks, payroll to employees and employment taxes due to the Internal Revenue Service (IRS). Instead, THOMAS used a significant portion of Northwoods Trucking’s business revenue to pay personal expenses and debts, including housing, furniture and a family vacation. The total loss caused by THOMAS’s fraud scheme is approximately $730,000, in addition to $57,792.13 in employment taxes that he failed to pay to the IRS.   

This case was the result of an investigation conducted by the FBI and the Internal Revenue Service-Criminal Investigation Division.

Assistant U.S. Attorney Michelle E. Jones and former Assistant U.S. Attorney John Kokkinen prosecuted the case.

 

Defendant Information:

DOUGLAS RAY THOMAS, 49

Bloomington, Ind.

Convicted:

• Wire fraud, 1 count
• Failure to account for and pay over employment taxes, 1 count

Sentenced:

• 51 months in prison
• Two years of supervised release
• $692,457.13 in restitution

 

 

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United States Attorney Erica H. MacDonald today announced the sentencing of MARIO MARTELL SPENCER, 34, and AHMED OSMAN FARAH, 32, for the armed robbery of a Minneapolis convenience store. SPENCER and FARAH were convicted by a federal jury on June 17, 2019, and were sentenced to 156 months in prison and 120 months in prison, respectively. The sentences were handed down by Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.

United States Attorney Erica MacDonald said, “Armed robbery of a small business, high-speed flight from police through residential areas, significant property damage – this is unwelcome criminal activity in our communities. My office and our law enforcement partners are laser focused on making our streets safer and we will not hesitate to go after those who oppose that mission.”

As proven at trial, on March 23, 2018, around 8:30 p.m., SPENCER and FARAH entered Penn-Wood Market, located on Glenwood Avenue in Minneapolis, wearing masks and gloves. SPENCER held two employees at gunpoint while FARAH took money from the cash registers and stole one employee’s cell phone. The two defendants fled the scene in a vehicle. A witness called 911 as the robbery was in progress and, shortly after, responding officers were able to locate the defendants’ unoccupied vehicle, which had crashed into a garage. Law enforcement set up a perimeter around the area of the crash site and, following a foot chase, were able to apprehend and arrest FARAH. With the assistance of a K9, law enforcement officers initiated a systematic search inside the perimeter and eventually found SPENCER hiding on top of the roof of a garage.

This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.

Assistant U.S. Attorneys Nathan H. Nelson and Justin A. Wesley prosecuted the case.

 

Defendant Information:

MARIO MARTELL SPENCER, 35

St. Paul, Minn.

Convicted:

• Interference with commerce by robbery, 1 count
• Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count

Sentenced:

• 156 months in prison
• Four years of supervised release
• $2,800 in restitution

 

AHMED OSMAN FARAH, 33

Maplewood, Minn.

Convicted:

• Interference with commerce by robbery, 1 count
• Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count

Sentenced:

• 120 months in prison
• Four years of supervised release
• $2,800 in restitution

 

 

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